MxMIndia

Tag: FICCI

  • Finance Minister Pranab Mukherjee will be chief guest at the Aaj Tak Care Awards to be held in the Capital on June 6

    Aaj Tak Care Awards to be announced tomorrow

    From the MxM Infodesk

     

    Leading Hindi news channel Aaj Tak will host the Aaj Tak Care Awards on June 6 at Hotel Taj Palace, New Delhi. Finance Minister Pranab Mukherjee will be chief guest at the awards which will honour leading companies in the corporate sector who have contributed towards inclusive and sustainable development keeping in mind the society as the focal point

     

    Aaj Tak Care Awards will be given in five different categories: Education, Empowerment, Environment, Health & Livelihood. IMRB and FICCI partnered the event.

     

    Commenting on the awards Joy Chakraborthy, CEO, TV Today Network said, “It is a matter of great pride for all of us to honour the real champions of corporate India who have positively impacted the society. We looked at companies who have gone beyond their corporate objectives of growth & profitability and have put a society centered approach at the centre of everything they do.”

     

  • June 30 is the sunset date for digitization in the four metros and there are question marks on the readiness. Dinyar Contractor lists the reasons why he thinks delivering before the deadline for the four metros is such a challenge

    The Anchor: Dinyar Contractor on 10 reasons why the digitization deadline is a mighty challenge

    By Dinyar Contractor

     

    1. At the FICCI- I&B ministry meet that was held a week ago in Mumbai, barely 40 days before the analogue sunset date, the I&B officials said that they had reviewed digitization in Mumbai the previous day so their report was immediate and current and they confirmed that 33 per cent of the homes in Mumbai already have set-top boxes. I would like to turn that around factually and say that 67 per cent of the homes did not have digital boxes even 40 days before the sunset. So it is pretty much an impossible task that 67 per cent will get it within 40 days.

     

    2. Let’s look at Chennai. Arasu Cable has confirmed that they don’t have set-top boxes. In fact, a day after the FICCI meet, Arasu had asked its cable operators to log in to the Arasu site and send in their estimates of how many boxes will be required. Arasu will then put together these estimates and float a tender which means they would then start asking for people to give prices for boxes. So for the boxes coming in is way over the horizon for Chennai.

     

    3. Incidentally, there is a lead time just for a component of a set-top box in the world market today of four months. That means if you order your box today and the manufacturer orders the component, it will be four months before the manufacturer gets the component. What that means is that the box will not be manufactured and it will definitely not reach you before five months. Therefore, if at all there is a postponement, it doesn’t make sense to have any postponement which is earlier than Jan 1, even six months is really cutting it fine.

     

    4. There is a major national level MSO who candidly admitted to me that their HD boxes have landed but they don’t have the funds to clear them. The government had promised 74 per cent FDI as part of the digitization effort but the government has not implemented this and therefore, MSOs have not been able to tap foreign investors. So without enabling funds, the government has put this clause out which does not make any sense.

     

    5. We are talking of a sunset date 30 days from now. So for instance, I as a cable operator go to somebody’s home and I say please take the set-top box. And they say, sure I’ll take it but what is it going to cost me? And I say I don’t know what it is going to cost you because the government hasn’t declared the rate. Now as a customer I would not accept the box.

     

    6. On May 28, the TRAI put up all the analog pay channel tariffs. There is a Supreme Court judgment which says that broadcasters cannot charge more than 42 per cent of the analog pay channel rates for digital. So 42 per cent is the ceiling, however that 42 per cent is completely irrelevant since broadcasters are providing pay channels to DTH platforms at something between 10 to 15 per cent. So from May 28, the ball has started rolling where negotiations have been opened between broadcasters and MSOs to work out some figure for their pay channels that will be somewhere between 10 and 42 per cent. So there is a huge spread in the rates between 10 and 42 per cent, these negotiations are obviously not going to quick and easy. I don’t see these negotiations culminating in three weeks or a month.

     

    7. There was a Parliamentary Committee report which was released and tabled in the Lok Sabha a few days ago where the Committee says that this entire thing should be delayed by at least six months. I see this as the first stone thrown by the government to ripple the waters and start talking of a delay.

     

    8. The TRAI suddenly declared that every digital headend must deliver 500 channels. Incidentally, a major portion of the set-top boxes already deployed are incapable of doing 500 channels. This is again a fact that is not adequately ventilated. They can typically do 350 channels, less than 400 channels. It means that they have to take out may be 2 million of the boxes that have already been seeded and throw them away. Where is the money going to come from? We are not even realistic about what is going on.

     

    9. In Kolkata, don’t forget there is Mamata Banerjee who might rake up the issue against digitization depending on the political capital it might have.

     

    10. Here you have a sunset clause where the government has not enabled anything, they have only been talking of a sunset but they have not done anything to facilitate and to enable the sunset. The delay has nothing to do with the MSOs or the cable industry, it is simply completely chaotic unplanned deputation of the law or total lack of enabling a systematic process in which digitization could have been introduced.

     

    Dinyar Contractor is Editor and Executive Publisher, Satellite and Cable TV Magazine (www.scatmag.com)

     

  • The operators stood unanimous as they put their issues in front of I&B Ministry. The issues on which they wanted answers to varied from being given a 'chor' tag to why they should collect entertainment tax for the state government

    Cable operators take on I&B at digitization meet

    By Meghna Sharma

     

    With May coming to an end and only a month left for digitization, the Information & Broadcasting Ministry is trying its level best to get the stakeholders to a mutual consensus. A forum was organized by FICCI and I&B ministry in Mumbai to share some thoughts on ‘ India going Digital’.

     

    Present at the event, Supriya Sahu, Joint Secretary (Broadband & Policy) and Rajiv Takru, Additional Secretary of Ministry of I&B heard what the cable operators of the city had to say. It is not a hidden fact that cable operators aren’t very happy with the whole process. Deadline date, revenue share and carriage fee were some of the strong points put forward by them.

     

    Cable operators’ woes

    The operators stood unanimous as they put their issues in front of I&B Ministry. The issues on which they wanted answers to varied from them being given a ‘chor’ tag to why they should collect entertainment tax for the state government.

     

    Although the topic of revenue share was top of the list, none of the operators agreed with the 45:55 share with the MSOs and wanted the government to do something about it. “How will we survive?” they questioned. The cable operators want a bigger share in the pie; some even suggested of a full 100 per cent share.

     

    Some operators even went on to tell the government to re-work the deadline and launch a phase-by-phase change, wherein both analog and digitization be allowed hand-in-hand, with only a few channels being converted in the beginning.

     

    One operator even compared the cable operators with Jesus and said that they’ll be carrying the set-up boxes to their funerals. Availability of the set-up boxes is a major concern as many reminded the ministry representatives that MSOs have not been able to provide them with the boxes even as the deadline looms in. “How does the government expect us to meet the deadline when we haven’t been provided with the set-up boxes. We don’t even know if the demand will be met before the blackout. And how are we going to face the wrath of our customers when their television sets go blank?” questioned one operator.

     

    Carriage fee was a topic on which all of them agreed upon, stating that they alone shouldn’t be allowed to bear its burden. They also wanted the ministry to intervene and tell the broadcasters to bring out their rate cards as soon as possible so that they can, in turn, inform their customers.

     

    Ministry’s assurance

    Rajiv Takru, Additional Secretary of Ministry of I&B, confirmed that no matter the issues raised or problems faced, digitization will not be compromised upon. “There is still some confusion and doubts in many cable operators’ minds, but one needs to be very clear that digitization will happen and shouldn’t be taken lightly.”

     

    He advised the cable operators to start working on it as very little time is left. He added that it is cable operators’ job to go and talk to their customers about digitization becoming a reality soon. “Multi-system operators (MSOs) have been informed to provide cable operators with set-up boxes before the deadline of June 30 and they will have to follow suit. It is the cable operator’s job to convince customers to change before it’s too late to avoid the chaos.”

     

    He added that the rules of the game have been changed and if anyone is caught evading rules or indulging in any malpractice then according to the Cable Regulation Act, the person will be arrested and made to shut shop as it has now become a cognizable offence.

     

    The broadcasters have been informed and will bring out rate cards by end of this month, Mr Takru assured: “Broadcasters and MSOs have to go by the rules and have to come out with bouquet as well as a-la-carte channels. One needs to understand that digitization is a win-win situation. The customer will be able to chose and cable operators will be able to provide the best quality service.”

     

    Direct to Home (DTH) service is seen as the biggest opponent by cable operators and feel that DTH operators don’t want them to reach the deadline, especially with monsoons approaching as they do not get many customers in the season. To this Mr Takru assured cable operators stating that they shouldn’t see DTH as a challenge: “A lot of DTH operators are still waiting in line to get more channels as they don’t have sufficient signals/transponders whereas cable operators will be able to provide 500 channels to their customers.”

     

    No end to the chaos

    However, no concrete solutions came out of the meeting as the atmosphere at the forum heated up. The cable operators continued demanding the deadline to be pushed back while Mr Takru only said that their point has been noted.

     

    Furthermore, the cable operators didn’t let the MSOs present at the event speak their side of the problem or issues. The agitation ended when Mr Takru and Ms Sahu walked out of the venue citing shortage of time and the MSOs escaped with them.

     

     

  • Addressing a seminar on 'India going Digital: An Industry Interaction with Stakeholders' Additional Secretary of I&B Ministry Rajiv Takru said that the sunset date is sacrosanct and absolutely non-negotiable. Moreover, digitization is in the larger public interest, and if it hurts a few, then so be it.

    [95 Days to D-Day] No negotiation on deadline: MIB

    By Shruti Pushkarna

     

    Once again the government of India maintained its hard stand on the issue of digitization. Speaking at a FICCI organized seminar, ‘India going Digital: An Industry Interaction with Stakeholders’, Additional Secretary, Ministry of Information & Broadcasting, Rajiv Takru, made it very clear that the June 30th deadline is not subject to any negotiation. Addressing all stakeholders, the LCOs, MSOs and the broadcasters, Mr Takru said, “All analog will be switched off from July 1. The June 30th deadline is not negotiable at all. So all stakeholders should pace up and brace the change.”

     

    The seminar on digitization was organized by FICCI in New Delhi in partnership with the government of India. Participating in the event were all stakeholders, from local cable operators (LCOs), to multi-system operators (MSOs) as well as broadcasters. The seminar was organized to address issues faced by various stakeholders in the run up to the switch over from analog to digital.

     

    Mr Takru started off by saying that there are several rumours in the market that he would like to belie. The first being the unavailability of set top boxes (STBs). He said, “In Delhi there is a requirement of around 33 lakh STBs out of which 7 to 8 lakh STBs are already installed. And around 28 lakh STBs have already been ordered for and they are at various points in delivery. So whoever tells you that there are not enough STBs, is all false.” Secondly, he said there is a lot of talk about the sunset date being extended, he said that the deadline was absolutely sacrosanct and all industry stakeholders will have to follow it as an order. However, he admitted that the task that lay ahead is not easy but knowing the weaknesses of analog, this seems to be the best way forward for all. Mr Takru said that digitization is good for everyone and especially for the consumer. He said, “Digitization is in the larger interest of the consumer and if it hurts a few then so be it. This initiative is not being undertaken to promote any particular business interest, it is a larger step in the move towards digital.”

     

    Also addressing the gathering was Ms Supriya Sahu, Joint Secretary (Broadvast & Policy), Ministry of Information & Broadcasting. Sharing some numbers with the audience Ms Sahu said, “There are 33 lakh cable TV homes and around 5000 cable operators. There are 5 national MSOs and several independent MSOs. The task ahead is difficult and we need to especially reach out to the migrant workers and slum dwellers.” She also said that the government was doing its bit by running ads on radio and TV for consumer awareness. A toll free number has been set up for all kinds of queries on the matter, and the ministry also has a Facebook page where issues can be addressed. However, she urged the LCOs to get into the act now. She said, “You need to start contacting all your consumers to pass on the message because time is very limited.” She assured all stakeholders that although the rules are still being framed by the ministry, once out, they will only ease the process of transition for everyone involved. She said that there were no substantial changes that the ministry is going to make to the existing framework for the benefit of all stakeholders.

     

    Despite all assurances of support from the government representatives, the industry stakeholders seemed unconvinced. Ministry representatives invited questions for discussion from the audience and it was evident from the several points raised at the forum that there were varied levels of discomfort among the stakeholders. While some were hoping that there will be an extension to the sunset date, some hoped that there will be subsidies in sight. But putting all doubts to rest, Mr Takru said, “There will be no free STBs provided for by the government, just like there is no such thing as free lunch. There are no subsidies being contemplated by the government at this point.” He said however, the service providers are putting their services out in the market with heavy amount of subsidy built in, like the cost of a set top box is already subsidized.”

     

    A concern was voiced by a local cable operator with regards to the quality of STBs. He said, “Often there are issues with the set top box provided by the MSO and once the customer buys the STB, he/she is stuck with it. Since the LCO is the link between the end user and the MSO, what does the LCO do if the consumer wants to return the STB and get another one?” Addressing his query Mr Takru said, “The government is devising a scheme where a customer can return a STB he/she has purchased. The refund guidelines etc. are being worked upon by the ministry. The LCO can also return the STB to the MSO and get a refund in return.”

     

    Addressing a concern over the tariff for channels, Mr Takru said that TRAI will soon notify the tariffs which will apply to all, including the LCO, MSO, broadcaster as well as the customer. On repeated complaints over lack of availability of STBs from the MSOs’ end, Mr Takru told several LCOs present that they were free to change their MSO if the MSO refused to provide them with required STBs. But he also urged the cable operators to cooperate with the MSOs in the switch over process.

     

    The seminar was followed by a press conference by the ministry officials. Addressing the media, Mr Takru said, “The discussion with the stakeholders was very interesting and we managed to address several concerns of all the stakeholders.” The Additional Secretary reiterated for the media that there were more than required STBs available in the market and the deadline was non-negotiable. Speaking of the tariff for channels, Mr Takru said, “We don’t expect the tariff structure to rise or to go beyond what it is today.” He also said that consumer awareness initiatives are being undertaken by the ministry, which has already put up radio jingles on AIR FM Gold and Rainbow. Two TV spots will be on air soon on all national and private channels. The IBF and NBA are also carrying tickers as an initiative to raise consumer awareness on the subject.

     

    Mr Takru concluded by saying that this process might leave a few unhappy but because it is being done in the larger public interest, the government is forced to ignore certain concerns being voiced by a smaller group. He said that digitization will empower the customer who will now have the ‘choice’ to watch what he/she desires to watch unlike the present day scenario when the customer is dependent on what is offered by the cable operator.

     

  • Having played a tepid role thus far, digitization is poised to take a big leap as it sets out to revolutionize the fortunes of the M&E sector.

    @FF12: Counting on digital to be M&E’s opportune trailblazer

    By A Correspondent

     

    Those familiar with the going-ons at FICCI Frames would testify how an infatuation gets displayed by delegates at the event each year so as to summarise the mood of the convention even before it broadly takes off across the three days that it is entitled to. But probably, the setting was a bit different this time around when the delegates – joined in unison by the media – were running ballroom to ballroom trying to ingest giveaways that were being thrown up abundantly across several sessions. May be, it was a year where each day had something new to offer to the delegates that kept them at tenterhooks throughout the 3-day event. And going by the loud decibels that were being emanated across every nook and corner of the venue, it was evidently clear that there was some motivating factor that was driving the gathering to go on an overdrive spree.

     

    The organisers of FICCI Frames 2012 have every right to take credit for coming up with a theme around a medium that attracted the attention of one and all. Having kept it on the sidelines till last year, digital was finally given its due at the convention as experts, authorities and enthusiastic youngsters came face to face to deliberate and come up with outcomes that would redefine the way the consumers consume the medium. From television to print to films and even radio, digitisation and the benefits and effects it would cast on these sectors were discussed in length at the venue. In fact Star India CEO Uday Shankar in his keynote address didn’t hesitate in thanking the FICCI committee for putting across a theme that would go on to redefine the way the industry functions in the future.

     

    What was apparently clear through the various sessions at the convention is that with the nearing of date for total digitisation across key metros by June 30 2012, and then across the country by 2014, broadcasters had to relook their distribution and content provision models so as to keep the consumer at the heart of every shift that will transpire in the future. Emphasising on the current digitisation scenario in the country, Mr Shankar said, “Most of the discussions that I have participated in are still around whether digitization will happen and if it indeed were to go through, how chaotic it would be. But all these are meaningless discussions triggered by a bunch of retrograde interests who are living in denial.” According to Mr Shankar, digitization of distribution is a big reality and the 40-45 million homes that have bought DTH boxes at some point or the other are a conclusive evidence of that.

     

    Shooting back at critics who had doubted whether the makeover to digital would ever be a reality, Mr Shankar said, “To the critics and the cynics who are still wondering whether digitization would happen, my answer is: Look around, it is already happening and the rest of it is bound to happen because even in this country it would be difficult to undo such a momentous shift. To those who wonder how chaotic it would be, my response is that there would be some chaos, but chaos is not necessarily bad if the alternative is status quo or regression. When a transition at such a scale is happening that affects the illegitimate but strong vested interest in certain pockets, then there is an incentive to put up with chaos in the interest of the larger social objectives.”

     

    A broader outlook was provided by a few panellists who said that digitization will come in as a relief for broadcasters who will be benefitted from additional subscription revenue, relaxation on paying heavy carriage fees, and of course providing viewers with a superior content experience – MSOs and cable operators have to quickly respond to the digitization mandate by investing in set-top boxes – the cost that is only possible to recover after four years.

     

    Sounding off the challenges that digitisation would present for the broadcast sector, Tarun Katial, CEO of Reliance Broadcast Network Ltd said that, “For television, it will be a combination of content as well as marketing. The old model which was a combination of carriage and product, as it stands today, won’t work. The business plan which currently has a very high rate of carriage will obviously see the content taking precedence.” And as for content, it will be niche content that will call the shots for broadcasters as according to experts at the convention, niche isn’t niche any more as all niche channels put together command a share that is equivalent to the share of Hindi GECs and the mass channels, so to say.

     

    Perhaps the many advantages that digitisation will have on several mediums was rounded off by Vikram Sakhuja, CEO, South Asia, Group M who said, “The inherent power that digital brings along with it is interactivity and its ability to link multiple devices. Also the ability to enhance real-time consumption of content; linked to that is the entire thing about going mobile.” On the roadmap for the industry, Sakhuja said, “I think integrated media is the best way forward. Today when people think of multimedia planning, they do a separate TV plan, print plan, radio plan, internet plan and so on. I believe that if you actually look at media agnostically and at common metrics of each cost per thousand impressions, these are the ways in which you can construct a media agnostic plan. What it does is, it suddenly gets more money into digital, and when more money can come into digital, that’s when focus is going to come in.”

     

    While digitisation was the mainstay of every discussion, the all-important issue of regulation too was taken up by panellists who chose to have the government respond to the many queries surrounding the topic. Uday K Varma, I&B Secretary, said that “if people at large seem to be happy with self regulation, I think the government would have no problem in legitimizing them. But I think the self regulation mechanism which has been set up by both the news broadcasters and the entertainment broadcasters, they’ll have to really prove it, not to the government but to the people at large.” He was joined in his cause by Prithviraj Chavan, Chief Minister of Maharashtra who said that the challenge would be to adopt the regulatory framework to new technology and ensure that over regulation doesn’t kill a good thing. The Chief Minister emphasised on the need for regulation and suggested that instead of the state regulating the media, the medium should look at regulating itself.

     

    The other important announcements that came up at the venue included the soon-to-be-passed Copyright Amendment Bill, the roll-out of the imminent phase 3 radio policy that would steer the growth of the medium and increased government aid for the film & entertainment sector.

     

    Session Byte

    “I think we have created some kind of history by encouraging self-regulation for the news and entertainment channels. We are keeping a close watch on the efficacy of this novel mechanism. A lot would depend on how effectively these self regulations become functional. If people at large seem to be happy with self-regulation, I think government would have no problem in legitimizing them, but I think the self-regulation mechanism which has been set up by both the news broadcasters and the entertainment broadcasters, they’ll have to really prove it, not to the government but to the people at large.”

     

    — Uday K Varma, I&B Secretary

     

    New ventures @ FICCI

    BARC takes wings

    In between the many promises and hopes that were being doled out at the sessions came the news of the Indian Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA) and Advertising Agencies Association of India (AAAI) announcing the official formation of a nationwide audience research joint body — Broadcast Audience Research Council (BARC).

     

    While IBF will have 60 per cent stake in BARC, ISA and AAAI will each hold 20 per cent stake. The Board of the council will have 10 members, six members from the IBF and two members each from the ISA and AAAI.

     

    Discovery Kids to flag off ops in April

    Another important announcement was made by President & CEO of Discovery Networks International, Mark Hollinger who announced the launch of its new network for children in India, ‘Discovery Kids’. Mr Hollinger said, “Launching in April, the network will initially be available in three languages – Hindi, English and Tamil. The channel will offer children a fun and entertaining way to satisfy their natural curiosity with stimulating and imaginative programming,” he said. The company plans to roll out the channel in Philippines and Indonesia later this year.

     

    Ten Golf tees off

    Taj Television India Pvt Ltd announced the launch of Ten Golf, a dedicated 24-hour golf channel. Ten Golf is the fifth channel from Taj Television India Pvt Ltd and began transmission on March 15, 2012. The dedicated golf channel will showcase a mix of live, non-live and feature programming. The channel will also broadcast live, high quality Golf action from around the world.

     

    Ten Golf has acquired rights for European Tour and Asian Tour till 2016, and has also entered into partnership with PGTI for three years to telecast the Indian Tour. Further, Ten Golf will be telecasting 400 hrs of golf programming in association with NBC.

     

  • According to the FICCI-KPMG report, the growth trajectory was backed by strong consumption in tier 2 and 3 cities, continued growth of regional media, and fast increasing new media business. Overall, the study predicts the industry to register a CAGR of 15 percent to touch INR 1,457 billion by 2016.

    @Ficci Frames 2012: KPMG study says M&E sector is set for good times ahead

    By A Correspondent

     

    HILE the effects of the economic downturn were felt across sectors and industries last year, it was a steady year for the Indian Media & Entertainment (M&E) industry that registered a growth of 12 percent over 2010, to reach INR 728 billon. According to the FICCI-KPMG report, the growth trajectory was backed by strong consumption in tier 2 and 3 cities, continued growth of regional media, and fast increasing new media business. Overall, the study predicts the industry to register a CAGR of 15 percent to touch INR 1,457 billion by 2016.

     

    But despite the positive numbers recorded, the report agrees that 2011 has indeed been a challenging year not just for the Indian M&E industry, or even the Indian economy, but for the larger world economy. While India is still expected to grow at a healthy pace, growth is projected to be lower than expectations.

     

    The report notes that television continues to be the dominant medium while sectors such as animation & VFX, digital advertising, and gaming are fast increasing their share in the overall pie. Radio is expected to display a healthy growth rate after the advent of Phase 3. Print, while witnessing a decline in growth rate, will continue to be the second largest medium in the Indian M&E industry. Also, the film industry had reason to cheer, with multiple movies crossing the INR 100 crore mark in domestic theatrical collections, and INR 30 crore mark in C&S rights.

     

    Advertising spends across all media accounted for INR 300 billion in 2011, contributing to 41 percent of the overall M&E industry’s revenues. Advertising revenues witnessed a growth of 13 percent in 2011, as against 17 per cent observed in 2010. In terms of performance, 2011 proved to be a year with mixed results in terms of growth across different sub sectors. The traditional media businesses experienced a slowdown compared to last year, especially in the second half of the year. However, the new media segments like Animation and VFX, Online and Gaming businesses witnessed phenomenal growth rates.

     

    Highlighting some visible trends spotted in the report, Dr. Rajiv Kumar, Secretary General, FICCI said, “The key highlights are rise in digital content consumption, launch of diverse content delivery platforms, strong consumption in tier 2 and 3 cities, rising footprint of the players in the regional media, rapidly increasing new media business and regulatory shifts.”

     

    Putting forth a more pragmatic outlook, Jehil Thakkar, Head of Media and Entertainment, KPMG said, “The Media & Entertainment industry landscape is undergoing a significant shift. Cable digitization, the promise of wireless broadband, increasing DTH penetration, digitization of film distribution, growing internet use are all prompting strategic shifts in the way companies work. Traditional business models are evolving for the better as a host of new opportunities emerge.”

     

    Key trends and industry drivers:

    – Growth in digital content consumption across media

     

    Key Highlights –

    Print: The print industry grew by 8.3 percent from INR 193 billion in 2010 to INR 209 billion in 2011. The growth was slightly lower than our expectation of 9.5 percent last year due to the challenging macroeconomic environment and reduced advertising spends.

     

    Television: The over-all television industry is estimated to be INR 329 billion in 2011, and is expected to grow at a CAGR of 17 percent over 2011-16, to reach INR 735 billion in 2016. The share of subscription to the total industry revenue is expected to increase from 65 percent in 2011 to 69 percent in 2016. The TV industry continues to have headroom for further growth as television penetration in India is still at approximately 60 percent of total households.

     

    Films: With several high budget Hindi releases lined up across the year, 2012 is expected to sustain the growth momentum witnessed in 2011. The Indian film industry is projected to grow at a CAGR of 10.1 percent to touch INR 150 billion in 2016. The industry is estimated to be INR 93 billion in 2011 indicating a growth of 11.5 percent vis-à vis 2010.

     

    Music: While 2010 was the year of structural shift from physical formats to digital ones, 2011 provided users viable options of music consumption through different digital platforms. The Indian music industry achieved revenues of INR 9 billion in 2011, registering a growth of 5 percent over 2010.
    Radio: Overall, the industry grew 15 per cent in CY 2011 to reach INR 11.5 billion, compared to INR 10 billion in CY 2010. Volume increases in certain markets and rate increases for the leaders in metros drove growth.

     

    New Media: Digital advertising is expected to grow at a CAGR of 30 per cent from 2011-16; digital adspend reached approximately 5 per cent of total M&E industry advertising revenue in 2011. Growth is largely driven by increase in internet penetration and proliferation of new devices.

     

    Animation & VFX: Animation, VFX and Post Production industry achieved estimated revenues of INR 31 billion in 2011, a robust growth of 31 percent over 2010. Growth was achieved on the back of increased contract work, higher VFX content in movies, 2D/3D conversion projects.

     

    Out of Home: The OOH sector was hit relatively harder by the global economic slowdown than other sectors of the Advertising industry. The sector registered a Y-o-Y growth of 7.6 percent.

     

    Digital technology continues to revolutionize media distribution – be it the rapid growth of DTH and the promise of digital cable, or increased digitization of film exhibition – and has enabled wider and cost-effective reach across diverse and regional markets, and the development of targeted media content.

     

    There has been increased proliferation and consumption of digital media content – be it newspapers and magazines, digital film prints, and online video and music or entirely new categories such as social media. Accordingly, online advertising spends have seen a spurt in growth vis-a-vis spends on traditional media.

     

    – Rise of new age user devices

    Smart phones, tablets, PCs, gaming devices, etc. all form the foundation of a new wave in media usage. This is gradually impacting the way content is being created and distributed as well. Multiple media including TV, films, news, radio, music etc are being impacted with this change.

     

    – New age consumers adapting themselves to the newer technologies

    As Indian consumers evolve, there is a heightened need to engage them across platforms and experiences. There is a greater need for integration and innovation across traditional and new media, with changing media consumption habits and preferences for niche content. Media companies today have no choice but to provide more touch points to engage with audiences.

     

    – Regionalisation

    Regional television and print continued its strong growth trajectory owing to growth in incomes and consumption in the regional markets. National advertisers are looking at these markets as the next consumption hubs and the local advertisers are learning the benefits of marketing their products aggressively.

     

    – An advertising revenue dependant industry

    The ARPU (Average Revenue Per User) for television, average newspaper cost for print and average ticket price for films continue to be low on account of hyper competition in these industries. Segments like Radio and a significant portion of online content are available free of cost to consumers. Owing to this, the Indian consumer is still not used to paying for content and hence the industry players are sensitive to the impact of the slowdown which affects the budgets of advertisers.

     

    – Awaited regulatory shifts

    Lastly, apart from the shifts in consumer preferences, company strategies and business models, one big change awaited for the next growth wave is the implementation of recently enacted and regulations on digitisation for cable, implementation of Phase 3 and copyright for Radio and the roll out of 4G. These shifts are expected to be game changers in terms of how business is being done currently and what could be the path going forward.

     

  • IIFA puts the spotlight on the South Indian film industry to make itself heard and seen on a wider stage.

    Move to promote South Indian film industry globally

    By A Correspondent

     

    The Federation of Indian Chambers of Commerce and Industry (FICCI) recently concluded the third Media and Entertainment Business Conclave (MEBC) 2011 in Chennai. The two-day conclave in Chennai welcomed the recommendation from Wizcraft International, that the South Indian film industry join hands to create a global platform which presents the South Indian film industry at key markets across the world.

     

    Sabbas Joseph, founder-Director at Wizcraft International, the global event management and communication company, shared the IIFA success story, wherein key global markets were opened and quantum growth was achieved by the Hindi film industry. The IIFA story also demonstrated the attention that is being given to Indian culture and business by global counterparts, he said.

     

    The weekend for the South Indian film industry would be a huge step towards recognizing the growing importance of South Indian cinema, by celebrating it on a global platform. Joseph spoke of IIFA being a channel for the expansion of the regional film business, generating revenues from International avenues.

     

    Mr Joseph added, “The talent in the South Indian film industry is enormous. We wanted to seize this opportunity to establish a platform for talent to be promoted and honoured on a national level and international level for South Indian films. Regional Indian cinema has grown into a global phenomenon and we would surely look at promoting and leveraging it on a global platform through brand IIFA.”

     

    Pioneered and executed by Wizcraft International, the International Indian Film Academy (IIFA), is supported by key members of the Indian film fraternity. IIFA is the most respected South Asian film academy and its main highlight, the IIFA Weekend and Awards, are India’s biggest media event, with a viewership of almost 600 million worldwide.