Digitisation
Reliance MediaWorks (RMW) has partnered with visual effects house Digital Domain to create a digital production pipeline that will make it possible for the company to work on major Hollywood projects. Reliance will have possession of the studios in Mumbai and London, while Digital Domain will manage the facilities.
Airtel digital TV, the DTH service by Bharti Airtel recently announced that it has entered into a partnership with Viacom 18-Colors to launch its first subscription service offering 24|7 movie and video content.
Print and Publishing.
The Indian print media industry is expected to grow by 9.6 per cent over the period 2010-15.The newspaper industry is also projected to perform well for the next five years growing at a CAGR of 10.1 per cent according to a report titled “India Entertainment and Media Outlook 2011” by Price water house Coopers.
Internet.
India is one of the fastest growing internet markets around the world. The advent of 3G services, availability of low rental data plans and low cost handsets have enabled a lot of users to access internet through their mobile phones. Mobile internet users are likely to touch the 46 million mark by September 2011, according to Mobile Internet in India report published by the Internet and Mobile Association of India (IAMAI) and market research leader Indian Market Research Bureau (IMRB). The report also shows that Mobile internet usage has been witnessing a 15 per cent growth quarter on quarter.
Internet advertising industry is projected to grow from Rs 6 billion (US$ 129.75 million) in 2009 to Rs 15 billion(US$ 324.33 million) in 2014 showing a Compound Annual Growth Rate (CAGR) of 20 per cent over the next five years. With increasing spread of mobile and broadband services and with the arrival of modern technologies like 3G, the industry might even witness a higher growth rate than what has been projected so far.
Recent Investments.
The India Innovation Fund (IIF), an early stage venture capital fund, has invested in SureWaves MediaTech, a Bengaluru-based start-up operating in the digital media-technology space. IIF and Accel Partners have invested Rs 10 crore (US$ 2.16 million) as part of Series A investment.
The Bengaluru-based company InMobi has acquired US-based Sprout, which creates rich media mobile advertising, for an undisclosed amount in cash and stock.
Government initiatives.
Government has permitted 100 per cent foreign direct investment (FDI) in the advertising sector through the automatic route and the government has also liberalised the conditions for 100 per cent FDI in the film industry.
India’s largest public sector broadcaster, Prasar Bharati is set to expand All India Radio’s FM operations to 210 new cities and towns. That would make it the largest player in the space.
Road Ahead.
Backed by increasing media intake and increased advertising spending, the Media and entertainment industry in India is projected to grow at a compound annual growth rate (CAGR) of 14 per cent to touch Rs 1,27,500 crore (US$ 28 billion) by 2015, according to a report by KPMG and a leading industrial body.
