Film entertainment market in India is growing at a fast pace with the entry of corporates and global production houses. With more than 1,000 films releasing in a year and 3.2 bn tickets being sold in the market, shows immense potential. Overseas box office and home video segments are registering high growth rates. The report provides a detailed market overview covering the market size and growth, market share and growth rates of segments, market share of regional films by volume, distribution of theatres in India and market share by value among the players in South Indian film industry. Major drivers include growth in multiplexes, government initiatives, entry of global players and growing home video segment. The industry faces tough challenges from piracy and low success rate. Key trends like emerging models in film distribution, new financing models and increase in animation films are discussed at length in a separate section. Competition section provides the details of major players including their presence in the value chain and investments in the film industry. The profiles of major players are provided with key developments in the industry.

1. Film Entertainment Market - India
January 2010

2. Executive Summary
The Indian Film Entertainment market is estimated to be INR x bn in 20--
The market is expected to grow at an annual rate of a% reaching INR y bn by 20--
Market Major global production houses are entering the growing Indian market seeing great potential
Domestic box office sales is leading segment in terms of revenues
LE
Hindi films dominate the market followed by South Indian films
Drivers &
Drivers:
–
–
MP
Growth in multiplexes
Challenges:
– Piracy in film industry
– Low success rate
A
Government initiatives
Challenges
S
– Entry of global players in India
– Growing home video segment
Foreign films gaining ground in India
Emerging distribution models in digital cinema
Trends New financing models for films
Growing 3D and 6D screen formats
Increasing number of animation films
Major Players
Competition Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
FILM ENTERTAINMENT MARKET - INDIA 2

3. •Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments
FILM ENTERTAINMENT MARKET - INDIA 3

4. India film industry is one of the largest in the world and has
immense potential for growth
Market Overview Market Size & Growth
•Indian film industry produces the largest INR bn
number of films annually in the world x a% y
LE
About xx films were released in 20--
x
•Films is one of the major form of x
entertainment for the people in India
MP
About yy bn movie tickets are sold in an year
x
x
country
•The film industry is dominated by Hindi,
S
catering to the diverse population in the
A
•Films are made in various languages in India 0
2008
Country-wise Domestic Releases (2008)
2013e
however many other states have their own No. of films
regional production houses x a
•The three major activities in this industry are x
Production, Distribution and Exhibition
b c
•The industry is highly fragmented with many x
d e
individual producers, distributors and single
screen theatres dominating the value chain 0
India USA Japan France Germany
Source:
FILM ENTERTAINMENT MARKET - INDIA 4

5. Segment 1 is the major revenue contributing segment and
Segment 3 is fast growing
Segments Overview Segments Share (2008)
•The industry is primarily divided in to 4 Segment 4
segments in terms of revenue streams Segment 3
D%
LE
•Domestic box office revenues is the major C%
Segment 2
segment contributing about aa% or INR XX bn B%
in 2008
MP
•Overseas box office is growing predominantly
A
with many production houses trying to market A%
their films across the globe
S
•Home video segment has new revenue models
apart from traditional DVDs like pay-per-view
or movie-on-demand in DTH
Segments Growth Rates
CAGR (20-- to --)
Segment 1
The segment is growing at a rapid pace at bb% per Segment 3 a%
annum
•Ancillary revenues include cable and satellite Segment 2 b%
rights, music and video rights
About p-q% of ancillary revenues are from Segment 1 c%
satellite rights alone
Segment 4 d%
Source:
FILM ENTERTAINMENT MARKET - INDIA 5

6. Hindi films dominate the film entertainment market
followed by the south Indian films
Geographic Overview Market Share of Regional Films (Volumes)
• Hindi films dominates the market followed by South Others
Indian - Telugu, Tamil, Malayalam and Kannada - Language 1
Language 7 A8
films A7 A1
LE
• The distribution of screens in India is skewed with Language 6 A6
the South accounting for nearly aa% of total screens
Bhojpuri and Marathi
MP
• Other notable regional film industries include Language 5 A5
A4
A2
Language 2
A
• About bb% of the revenues from South India is from Language 4 A3
Telugu and Tamil films
S
Market Share: South Film Industry (Value)
S3 S4
Language 3
Distribution of Theatres in India
Region 6
C3 Region 5 B7 Others
C4 B6 B1
Region 4 B5
C1 S1
45%C2 B4
S2 Region 3 B2
Region 1
B3
Region 2
Source:
FILM ENTERTAINMENT MARKET - INDIA 6

7. Drivers & Challenges - Summary
Drivers
Challenges
Growth in multiplexes
Piracy in film industry
Government Initiatives
Low success rate
Entry of global players in India
Growing home video segment
FILM ENTERTAINMENT MARKET - INDIA 7

8. Trends - Summary
Foreign films gaining ground in India
Emerging models in film distribution
Trends `
New financing models for films
Growing 3D and 6D screen formats
Increasing number of animation films
FILM ENTERTAINMENT MARKET - INDIA 8

9. Profiles of Major Players (4/4)
Company Business Description
• It is a wholly owned subsidiary of xxxx India
• It. is also the holding company of xxxx
LE
• Main business activities include Hindi films, Indian regional language films, Hollywood films,
Company 5
Animation (both international and Indian) films and distribution of these or other third party
MP
films across the globe
• First Indian company to have set-up a western style studio production system and India-wide
A
distribution network in 20--
Financials
S
• It has long-term deals with yyyyy and yyyyy and supports zzzzz
• It reported a turnover of INR S bn in the year 20--
• Company 6 was formed in 19-- as film production company by xxxx
Company 6 • Currently, it is a full-fledged production house with studio operation in India and worldwide
distribution of films, DVD and music
• It is a fully integrated film studio, the biggest in India for indoor shootings
• It tied up with yyyy to produce animation films in Indian language
Financials
• It reported a turnover of INR S bn and a net income of INR T mn
Source: Note: This list is not exhaustive
FILM ENTERTAINMENT MARKET - INDIA 9

10. Thank you for the attention
The Film Entertainment Market - India report is a part of Research on India’s Entertainment &
Media Industry Series.
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Natasha Mehta, CFA Gagan Uppal
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