Film Entertainment Market - India

January 2010
Executive Summary

The Indian Film Entertainment market is estimated to be INR x bn in 20--

The market is expected to grow at an annual rate of a% reaching INR y bn by 20--
Market
Major global production houses are entering the growing Indian market seeing great potential

Domestic box office sales is leading segment in terms of revenues

Drivers:
P E

Hindi films dominate the market followed by South Indian films

L Challenges:

M
– Growth in multiplexes – Piracy in film industry
Drivers &
– – Low success rate

A
Government initiatives
Challenges

S
– Entry of global players in India
– Growing home video segment

Foreign films gaining ground in India

Emerging distribution models in digital cinema
Trends
New financing models for films

Growing 3D and 6D screen formats

Increasing number of animation films

Major Players

Competition Company 1 Company 2 Company 3

Company 4 Company 5 Company 6

FILM ENTERTAINMENT MARKET - INDIA 2

•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

FILM ENTERTAINMENT MARKET - INDIA 3

 India film industry is one of the largest in the world and has
immense potential for growth
Market Overview Market Size & Growth
•Indian film industry produces the largest INR bn
number of films annually in the world x a% y

E

About xx films were released in 20--

L
x
•Films is one of the major form of x
entertainment for the people in India

MP

About yy bn movie tickets are sold in an year
x

country
SA
•Films are made in various languages in India
catering to the diverse population in the

•The film industry is dominated by Hindi,

0
2008

Country-wise Domestic Releases (2008)

2013e

however many other states have their own No. of films

regional production houses x a

•The three major activities in this industry are x
Production, Distribution and Exhibition
b c
•The industry is highly fragmented with many x
d e
individual producers, distributors and single
screen theatres dominating the value chain 0
India USA Japan France Germany

Source:

FILM ENTERTAINMENT MARKET - INDIA 4

 Segment 1 is the major revenue contributing segment and
Segment 3 is fast growing
Segments Overview Segments Share (2008)
•The industry is primarily divided in to 4 Segment 4
segments in terms of revenue streams Segment 3
D%

E
•Domestic box office revenues is the major C%

L
Segment 2
segment contributing about aa% or INR XX bn B%
in 2008

MP
•Overseas box office is growing predominantly

A
with many production houses trying to market A%
their films across the globe
S
•Home video segment has new revenue models
apart from traditional DVDs like pay-per-view
or movie-on-demand in DTH
Segments Growth Rates
CAGR (20-- to --)
Segment 1

The segment is growing at a rapid pace at bb% per Segment 3 a%

annum
•Ancillary revenues include cable and satellite Segment 2 b%
rights, music and video rights

About p-q% of ancillary revenues are from Segment 1 c%
satellite rights alone
Segment 4 d%

Source:

FILM ENTERTAINMENT MARKET - INDIA 5

 Hindi films dominate the film entertainment market
followed by the south Indian films
Geographic Overview Market Share of Regional Films (Volumes)
• Hindi films dominates the market followed by South Others
Indian - Telugu, Tamil, Malayalam and Kannada - Language 1
Language 7 A8
films A7 A1

LE
• The distribution of screens in India is skewed with
the South accounting for nearly aa% of total screens

P
• Other notable regional film industries include
Language 6 A6

Language 5 A5
A2
Bhojpuri and Marathi

AM
• About bb% of the revenues from South India is from
Telugu and Tamil films

S
Market Share: South Film Industry (Value)
Language 4
A4
A3
Language 3

Distribution of Theatres in India

Language 2

S3 S4 Region 6
C3 Region 5 B7 Others
C4 B6 B1
Region 4 B5
C1 S1

45%C2 B4
S2 Region 3 B2
Region 1
B3
Region 2

Source:

FILM ENTERTAINMENT MARKET - INDIA 6

Drivers & Challenges - Summary

Drivers
Challenges
Growth in multiplexes
Piracy in film industry

Government Initiatives
Low success rate

Entry of global players in India

Growing home video segment

FILM ENTERTAINMENT MARKET - INDIA 7

Trends - Summary

Foreign films gaining ground in India

Emerging models in film distribution

Trends `
New financing models for films

Growing 3D and 6D screen formats

Increasing number of animation films

FILM ENTERTAINMENT MARKET - INDIA 8

 Profiles of Major Players (4/4)

Company Business Description

• It is a wholly owned subsidiary of xxxx India
• It. is also the holding company of xxxx

Company 5
E
• Main business activities include Hindi films, Indian regional language films, Hollywood films,

L
Animation (both international and Indian) films and distribution of these or other third party

P
films across the globe

M
• First Indian company to have set-up a western style studio production system and India-wide

A
distribution network in 20--

S
• It has long-term deals with yyyyy and yyyyy and supports zzzzz
Financials
• It reported a turnover of INR S bn in the year 20--
• Company 6 was formed in 19-- as film production company by xxxx
Company 6 • Currently, it is a full-fledged production house with studio operation in India and worldwide
distribution of films, DVD and music
• It is a fully integrated film studio, the biggest in India for indoor shootings
• It tied up with yyyy to produce animation films in Indian language
Financials
• It reported a turnover of INR S bn and a net income of INR T mn

Source: Note: This list is not exhaustive

FILM ENTERTAINMENT MARKET - INDIA 9

 Thank you for the attention
The Film Entertainment Market - India report is a part of Research on India’s Entertainment &
Media Industry Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Gaurav Kumar
Phone: +91 22 4098 7530 Phone: +91 33 4064 6214
E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick
insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on

About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth
objectives.

Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the
sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.

FILM ENTERTAINMENT MARKET - INDIA 10