With more than 600 television channels, 100 million pay-TV households, 70,000 newspapers and 1,000 films produced annually, India’s vibrant media and entertainment (M&E) industry provides attractive growth opportunities for global corporations. Enticed by economic liberalization and high volumes of consumption, many of the world’s media giants have been present in the Indian market for more than two decades. However, in recent years, with near double-digit annual growth and a fast-growing middle class, there has been a renewed surge in investments into the country by global companies.
Media sectors, regarded as “sunset” industries in mature markets, are flourishing in India, presenting global media companies with exciting opportunities to counter declining revenues.
India’s favourable regulatory environment and recent reforms are creating investment opportunities in a number of M&E sectors.
Entry restrictions for foreign companies have been relaxed and Foreign Direct Investment (FDI) caps have been recently increased in key sectors, including Direct-To-Home (DTH) and radio.
The bulk of the country’s urban consumption is from non-metro cities (the tier 2 and tier 3 towns) and comprises regional markets with distinct cultures, languages and content preferences. These markets, which are huge markets within markets, provide global M&E companies with a variety of opportunities to deliver localized content. Many global film studios and TV broadcasters have already entered these markets and are producing regional language content.
In conjunction with India’s mobile phone user base of more than 750 million subscribers, the scale and impact of the country’s potential for digital content consumption is huge. This presents M&E companies, foreign and domestic, with an exciting opportunity to develop digital businesses that cater to a new generation of broadband users.
environment and that invest in tailored content and services are likely to maximize their success. Companies that understand and adapt to the economic and social fabric of the country’s operating Source: Film Industry In India : New Horizons(2012)