Corporatisation, entry of large players, consolidation or closure of smaller players, the entry of a number of players into capital markets have made the industry more visible, transparent, credible and accountable and hence of more interest to investors the AMC feels.

Global Marketing, with a focus over the large ethnic and NRI population, with companies having has opened up manifold opportunities for the local players to leverage their existing content to generate additional revenues set up their own overseas distribution network while others have tied up with the likes of BskyB and others to telecast and market their content.

Convergence and cross selling talks have become a reality now, along with the technology upgrades which present an exciting and challenging for the industry players.

Broadly the Indian media and entertainment industry consists of the following segments: films, print, television, music, live events and radio. Multiplexes are a recent addition to this as per a note from the AMC.

(1) TV penetration in India is currently at less than 10% and of this too only half of the households have cable connection. Inspite of the low penetration we are the third largest television market in the world, next only to US and China.

(2) India currently has the highest number of youth in the world. Globalisation along with higher disposable income is leading to rapid changes in lifestyle and this argues well for the media and advertising industry.

(3) Another contention by the AMC is that currently less that 20 per cent of the subscription revenues collected reaches the broadcaster against the norm of 75-80 per cent. As India moves towards a better regulatory regime revenues to broadcasters are slated to improve without any corresponding cost escalation.

(4) The AMC feels that Consolidation phase is almost complete and leaders have emerged in various centers. The leaders will now drive the growth.

(5) Another factor that the AMC believes is that the media business model has a strong and predictable revenue stream and at the same time it is highly scalable. With a favorable economic outlook and low penetration Reliance AMC sees immense potential for the players to expand both locally and overseas.

(6) Adding to this is India's changing demographics and the increasing disposable income with the youth. Stocks currently listed in India broadly cover all the business segments of the industry and provide multiple investment opportunities.