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Over the next four years, advertising on Indian television will
be driven by niche content as the ad community goes about targeting
specific consumers. Simultaneously, this trend will give content
producers a chance to expand the pie.
The report, part of which was released to the media earlier and
reported by Indiantelevision.com, indicates that the Indian
entertainment industry will grow yearly at the rate of 18 per cent
to reach Rs 450 billion in by 2009.
In the short term, growth in television is expected at The rate
of 14 per cent, while the number of C&S homes is expected to
grow at the rate of eight per cent. The report has estimated the
current base of cable homes at 50 millions.
Dwelling on the inadequacies in the cable industry, the report
says that the loss to broadcasters is immense as they only collect
a third of the revenue due to them. Assuming the monthly cable rate
is Rs 125 per subscriber, broadcasters should get Rs 75,000 million,
but in reality only Rs 25,000 million flows into the kitty.
The report notes that in the future, corrections in the regulatory
mechanism will result in increased subscription revenue for broadcasters
and growth in digital distribution formats.
Pointing towards some trends in the broadcast industry, the report
says that crossing over is the buzzword in the Indian television
segment. Music channels are launching soaps, news channels are foraying
into lifestyle shows and soap reviews, regional channels are taking
away viewership from mainstream channels and the mainstream broadcasters
like Star and Zee are looking towards South India. If this was not
enough, Sun is reported to have signed up a deal with Malaysia's
Astro All Asia Network to originate and distribute content for a
global audience and the ABP- Star alliance is planning a Bengali
channel.
In the future, the focus of channels will shift towards content
localization as audience fragmentation is increasing. On the regulatory
front, the report says that a new era will be ushered in with the
passing of sector regulator's interconnect order, which, however,
is being resisted by some players in the broadcast industry.
On the sports front, the report is optimistic that games like hockey
would get a tremendous fillip with experimentation being done to
make the game TV friendly. As an example, ESPN Star Sports association
with the Indian Hockey Federation to create the Premier Hockey league
has been cited.
Another trend cited by the report is that of increasing dubbing
happening in the films segment. Three of the top 10 films on TV
were dubbed in Hindi and other Indian languages and have proved
to be successful. For example, The Lost World on Star Plus got a
TRP of 8.52.
As far as the films segment is concerned, growth of 18 per cent
is projected. But slowing down this positive trend is rampant piracy
that has been calculated to be as high as 40 per cent.
The growth of multiplexes and digital cinemas will fuel activity
in this sector, the report states, pointing out that one of the
growth drivers is international cinema being dubbed in Indian languages,
including Hindi. Though the hype surrounds Hindi cinema, but the
PwC report makes it clear that regional cinema is growing in as
Hindi fare accounts for only 40 per cent of the market. The trend
of confinement of regional films in local areas is changing.
Another revenue source for films that will grow is in-cinema advertising.
As movie viewing becomes more organized, advertisers can reach this
hard-to-get demographic profile. The report says that advertisers
are choosing films that overlap with their own target audience.
Fuelling the boom in multiplexes business is the growth being witnessed
in retail sector. Making it clear that quality of service is an
important ingredient for multiplexes in drawing patrons, the report
states that alternate sources for revenue --- like live sports events
--- are also being explored by multiplex owners. Interestingly,
Andhra Pradesh has the largest number of theatres in the country.
On the radio front, the report notes that survival of private FM
radio stations will depend on the level and structure of license
fee decided by the government. Positive and timely regulatory framework
is what players are looking for, the report says, adding this segment
offers maximum growth potential, which is evidenced by players that
are not in the entertainment sector flirting with FM radio business.
The report also goes to state that radio's low ad sales rates ,compared
to television, will make it attractive for local and small advertisers.
Almost 3/4th of radio's ad revenue comes from local and retail advertisers.
The Size of the radio ad market is estimated to be at Rs. 2,400
million. This could go up to Rs. 6,500 million by 2009. This will
happen if the regulatory framework is rationalized, the report points
out.
On the music front, there has been a reduction on dependence on
film music. Music on mobile phones grew in popularity last year
when emergence of another trend was seen --- a more participative
model of risk sharing between film producers and music companies.
A growth driver for the music segment is talent nurturing through
reality and music shows. An example: Indian Idol.
The distribution segment of the music industry has become more
corporatised, the report said, adding this has given rise to innovations
too coming in like tie-ups with coffee chains to promote sale of
music.
The size of the music industry has been estimated to be around
Rs. 6,700 million. A three per cent yearly growth is expected, which
will help the industry be worth approximately Rs. 7,770 million
by 2009. Anti-piracy measures have helped the music industry.
Also Read:
Indian entertainment industry
to be worth Rs 450 billion in
2009: PwC report
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