Analysis & Trends - Past, Present & Future of the Indian Media & Entertainment Industry 2017

1. The Indian Media &
Entertainment Industry
2017
Trends & Analysis - Past, Present & Future
Chaitanya Chinchlikar
Vice President – Whistling Woods International
Vice President – Mukta Arts Ltd
chaitanya.c@whistlingwoods.net

2. Source: FICCI-KPMG Report 2017
The Indian M&E Industry - High-volume, low-value.
The Indian Media & Entertainment Industry includes
Film, Television, Print, Digital Media, Animation & VFX, Gaming, Radio, Music,
Events & Live Media, Sports, Out-of-home, Theme Parks & other media.
• Valued at over US$
19.1bn (1,26,200Cr INR)
which is ~0.87% of the
global M&E industry
(estimated at US$ 2.2tn)
• Growth from 2016-21
(13.9%) is going to be
almost 3x of the global
M&E industry (5.1%)
• The Digital media segment
grew at 28% in 2016,
30.8% in 2016-2021.
728
821
918
1026
1157
1262
1409
1606
1847
2115
2419
0
500
1000
1500
2000
2500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Indian M&E Industry
9.1%
13.9%

3. Source: FICCI-KPMG Report 2017
Indian M&E Industry - breakup
0
500
1000
1500
2000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
329 370 417
475
542 588
651
751
877
1014
1165
209
224
243
263
283
303
325
350
379
406
431
93
113
125
126
138
142
155
166
178
192
207
11
13
15
17
20
23
26
31
36
41
48
9
11
10
10
11
12
14
16
19
22
25
18
18
19
22
25
26
29
33
36
41
46
31
35
40
45
51
60
70
81
96
112
132
13
15
19
24
27
31
37
44
52
61
71
15
22
30
44
60
77
102
134
174
226
294
INRBillions
TV Print Film Radio Music OOH Animation & VFX Gaming Digital
All sections are growing. Some are growing faster than others

4. Source: FICCI-KPMG Report 2017
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
45% 45% 45% 46% 47% 47% 46% 47% 47% 48% 48%
29% 27% 26% 26% 24% 24% 23% 22% 21% 19% 18%
13% 14% 14% 12% 12% 11%
11% 10% 10%
9%
9%
2% 3% 3% 4% 5% 6% 7% 8% 9% 11% 12%
4% 4% 4% 4% 4% 5% 5% 5% 5% 5% 5%
2% 2% 2% 2% 2% 2% 3% 3% 3% 3% 3%
2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2%
2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2%
1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
TV Print Film Digital Animation & VFX Gaming OOH Radio Music
Indian M&E Industry – Market-share

5. Source: FICCI-KPMG Report 2017
The Indian Film Industry
• 2016 was a setback yr for the
industry as the domestic BO
shrank by 1.6%, but was
compensated by ancillary
revenues (primarily from digital
rights) which grew by 51%.
• While some studios have
slowed-down green-lighting of
new projects & are reviewing
their business models, Sony &
Reliance have expanded their
investment into their film
business. Also, new players
continue to enter the sector. Largest in the world by films produced (~1,400) &
tickets sold (~3.5bn). That said, in value terms, at
US$ 2.2bn, it is less than the BO of Avatar.
93
113
125 126
138 142
155
166
178
192
207
0
50
100
150
200
250
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Film
3%
7.7%

6. Source: FICCI-KPMG Report 2017
Film Revenues Breakdown
Domestic Revenues have always had a 90%+ market-share & expected to continue.
This is THE double-edged sword for the industry.
Proving the digital
medium’s
dominance,
Ancillary revenues
as a % of total film
revenue will
increase 2x over
the next 5 years.
Home Video, like
in the rest of the
world, is dying out
fast.
76% 75% 74% 73%
70% 69% 67% 66% 64% 63%
7% 7% 7% 7%
8% 8% 8% 8% 8% 8%
11% 12% 12% 12%
11% 10% 10% 10% 10% 10%
5% 6% 7% 7%
11% 13% 14% 16% 17% 19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Film Revenues % Breakdown
Domestic Theatrical Overseas Theatrical Home Video Cable & Satellite Rights Ancillary Revenues

7. Source: FICCI-KPMG Report 2017
Hindi Industry needs introspection
- Screens & Average Ticket Price have both
increased steadily over the past 5 yrs. Yet, no of
100Cr+ films have remained around the same.
- Box Office collections of the top 50 films have
remained steady but profitability has reduced by
almost half.
- There is a business-model review needed for the
Hindi Film industry.
500
1000
3000
3500
4200
5500
0
1000
2000
3000
4000
5000
6000
1994 - Hum
Aapke Hain
Koun
2009 - 3
Idiots
2012 - Ek
Tha Tiger
2013 -
Dhoom 3
2015 -
Bajrangi
Bhaijaan
2016 -
Dangal
No of Screens
8
6
8
6
7
0
1
2
3
4
5
6
7
8
9
2012 2013 2014 2015 2016
100Cr+ Films
24
28 27 26 25
60% 58%
54% 52%
36%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
5
10
15
20
25
30
2012 2013 2014 2015 2016
INRBillions
Top 50 Hindi Films
Box Office Collection Profitability %

8. Source: FICCI-KPMG Report 2017
The Indian Film Industry = ‘Bollywood’
While‘Bollywood’ is a generally used term to define the Indian Film industry,
Hindi films accounted for only 16% of the 1,400+ films that were produced.
The South Indian Film industry accounts for almost 50% of the films
Language No of Films
Hindi 220
Tamil 205
Telugu 212
Kannada 160
Malayalam 110
Bengali 140
Marathi 120
Gujrati 65
Bhojpuri 85
Punjabi 12
Others 70
Total 1,426
Hindi
16%
Tamil
15%
Telugu
15%Kannada
11%
Malayalam
8%
Bengali
10%
Marathi
8%
Gujrati
5%
Bhojpuri
6%
Punjabi
1%
Others
5%
Films Released

9. Source: FICCI-KPMG Report 2017
The steady growth of Marathi
- The number of Marathi films had slipped into single digits in late 90s / early 2000s.
- Today, there are ~120 Marathi films annually.
320 330
400 400 400
500
1100
0
200
400
600
800
1000
1200
INRBillions
Marathi Films Box office Collection
- Discerning plots and
progressive subjects are
balanced with more ‘mass’
genres of action & humour
& romantic comedies.
- Sairat became the 1st
Marathi film to cross 100Cr
at the Box Office.
- ROI for Marathi films is
excellent, probably one of
the best among all of the
film industries

10. Source: FICCI-KPMG Report 2017
Hollywood in India – Steady.
- Between 100-150 Hollywood films
release in India annually.
- Hollywood films have never had
more than 10% market share of the
Indian M&E industry.
- Hollywood has achieved viewership
& revenue growth with the dubbed
versions of their films doing well.
- With growing internet access and
general awareness of global
cultures, the cultural alienation
between Hollywood & the Indian
cinema viewer is reducing.
4.8
3.2
4.3
6.5
7.1
0
1
2
3
4
5
6
7
8
2012 2013 2014 2015 2016
INRBillions
Box Office Collection - Top 10 Hollywood
Films
27%
33%
15%
27%
45%
21%
41%
58%
0%
10%
20%
30%
40%
50%
60%
70%
2014 -
Guardians
of the
Galaxy
2014 -
Captain
America
Winter
Soldier
2015 - Star
Wars VII
2015 - Ant
Man
2015 -
Avengers
Age of
Ultron
2016 -
Finding
Dory
2016 -
Captain
America
Civil War
2016 -
Jungle
Book
% Contribution of Dubbed Films

11. Source: FICCI-KPMG Report 2017
Film – Revenue Split
When you pay Rs 100 for a movie ticket, what is the split?
• Gross – 100% (Rs 100)
• Entertainment Tax – 30% (Rs 30)
• Exhibitor – 50% of balance 70% (Rs 35)
• Distributor – 50% of balance 70% (Rs 35)
• Producer(s) / Co-producer(s) – depends on what deal they have made
with distributor – Outright / MG / Commission / Distribution Fee – and
with each other.
• P&A funding – deal specific, but usually is Last-In-First-Out.
• Talent – actors / director – may or may not have sweat equity.

12. Source: FICCI-KPMG Report 2017
Exhibition – Needs to grow!
• India has one of the lowest screen
densities among global film markets
• Urgent & rapid infrastructure growth in
multiplex screens is needed
• Government intervention is needed by
way of investment incentives / low-cost
land.
126
85 82
61
57
35
20
9
0
20
40
60
80
100
120
140
Screens/Million
2.7
3.5
4.7
5.7
6.5
1.3 1.4 1.4 1.5 1.4
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2012 2013 2014 2015 2016
Billion$
Domestic Box Office Size
China India
13,118
18,195
22,000
25,000
27,000
1,470 1,650 1,750 1,950 2,500
8,700
7,600
6,500 6,000 6,000
-
5,000
10,000
15,000
20,000
25,000
30,000
2012 2013 2014 2015 2016
Screens
Multiplex-China Multiplex-India SingleScreen-India

13. Source: FICCI-KPMG Report 2017
The Indian Film Industry - Key points
• Urgent and significant scale needed in Film education.
• Screens need to grow to double in 5 yrs; Government incentive
schemes will be needed.
• Globally-merchandisable, home-grown IP brand(s) needed.
• Hindi industry needs to review its business model. If costs are going to
continue to rise, the films need to start doing better in overseas high-
value markets. Alternatively, be more cost efficient and viewer-relevant.
• Regional shows its importance – Marathi, Gujarati, Punjabi
• Hollywood films box office growing (on the back of dubbed films),
though not as much as to threaten domestic content.
• Funding avenues, beyond the studios, grow with banks (IDBI, Exim,
Kotak, YES), Film Funds, Crowd-funding all becoming serious options.

14. Source: FICCI-KPMG Report 2017
The Indian Television Industry
• The most consistently
performing sector of the
Indian M&E Industry.
• It is, presently, over 4
times the size of the
Indian Film industry and is
the largest employer in
the M&E space.
• India overtook the US in
2014 as the world’s 2nd
largest TV-owning market. Average subscription rate for Cable TV / DTH:
India – 4-5$ per TV per month
US / UK / Europe – 40-100$ per TV per month
329
370
417
475
542
588
651
751
877
1014
1165
0
200
400
600
800
1000
1200
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
TV
8.5%
14.7%

15. Source: FICCI-KPMG Report 2017
TV Connectivity – A Digital blitz
With digitisation
primarily
successful for
Phase 1 & 2
(over 95%) and
the rest of the
country
underway on
the same path,
digital STBs
and DTH
connections are
the way of the
future.
0
50
100
150
200
250
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
69 68 70 65
47
10
1 1 1 1
19 25
29 37
45
68
76 79 82 84
34
37
40
44
54
71 78
81
84 869
9
10
15 22
29
31
31
31 30
Subscribers
Analog Cable Digital Cable DTH Other Digital

16. Source: FICCI-KPMG Report 2017
TV Connectivity, Channels, ARPUs
• India has added, on an avg 4.5
channels/month for the last 10 yrs.
• India has over 300 news channels.
• Channel differentiation is weak.
TV households, C&S penetration
& ARPUs are all expected to
grow over the next 5 years
5 55 130
263
550
800
0.83
1.25
2.22
4.78
4.17
0
100
200
300
400
500
600
700
800
900
0.00
1.00
2.00
3.00
4.00
5.00
6.00
1990 1995 2000 2005 2010 2015
Channels & Growth
No of Channels Avg Channels/month additions
154 161 168 175 181 186 191 196 200 203
79%
81%
83% 83%
81%
80%
81%
82%
83%
84%
0
50
100
150
200
250
75%
76%
77%
78%
79%
80%
81%
82%
83%
84%
85%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
TV Households C&S Penetration
248
258 266
299
334
367
214 219
230
261
298
343
150
200
250
300
350
400
2015 2016 2017 2018 2019 2020
ARPUs
DTH Digital Cable

17. Source: FICCI-KPMG Report 2017
GEC – GRP v/s Profitability
Low GRP High GRP
Low
Profitability
High
Profitability
Long running soaps
Low-cost game /
performance based
reality shows
Mythological series
Recently released movies
Celebrity-based shows
Why do we see what we see on GECs?
How does programming get divided between building a viewer base and profitability,
thorough the application of the concept of ‘stick-ability’!
Finite Fiction Series

18. Source: FICCI-KPMG Report 2017
TV Revenues – Getting better, slowly!
• Growth in subscription
revenue expected to bring
about more money to the
broadcasters which in turn will
fund more innovative content.
• In 2016, of INR 387 billion
paid by consumers, ONLY
INR 95 billion reached the
broadcasters, which is ~25%.
Underreporting of
subscribers, carriage fees &
lack of digitisation is the
reason for this.
245
281
320
361 387
426
494
579
672
771
125 136 155 181 201 225
257
298
343
394
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBilions
TV Revenues - Split & Growth
Subscription Revenue Advertising Revenue
245 281 320 361 387 426
494
579
672
771
57 69 75 86 95 112 134 163 195 230
23%
25%
23% 24% 25%
26% 27%
28% 29% 30%
0%
5%
10%
15%
20%
25%
30%
35%
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Subscription Revenue
Paid by Consumers Recd by Broadcasters %

19. Source: FICCI-KPMG Report 2017
Viewership & Ad-Revenue – Disparity!
View Ad Rev
Regional GEC 29.6% 15.9%
Hindi GEC 28.4% 27.5%
Hindi Movies 13.4% 6.7%
Regional Movies 6.6% 2.8%
Kids 5.6% 3.8%
Regional News 3.5% 8.3%
Hindi News 3.0% 8.4%
Regional Music 2.7% 1.4%
Music 2.6% 3.0%
Sports 2.1% 4.3%
Infotainment 1.1% 2.0%
English Entertainment 0.5% 4.6%
English News 0.0% 5.0%
Others 0.9% 6.3%
100.0% 100.0%
• Regional GECs break
the Hindi GEC glass
ceiling in viewership.
• Regional / Kids
channels are heavily
under-indexed.
• Hindi movies under-
indexed on account of
changed release
window & too many
ads.
• News, Sports, English,
& niche channels enjoy
heavy over-indexing

20. Source: FICCI-KPMG Report 2017
Indian Animation picks up
• Broadcasters are willing to pay over
double for good quality Indian
Animated content as compared to
daily soaps / Hindi general
entertainment content, even though
this segment gets only 5.6% of the
viewership, as compared to 28.4%
for Hindi GECs.
• Also the fact that this segment
continues to be under-indexed, with
only 3.8% ad-revenue share doesn’t
bother broadcasters as this content
has long-tail revenue
• It offers repeat viewing value, multi-
language dubbing value and
merchandising value.

21. Source: FICCI-KPMG Report 2017
Hindi GEC Fiction content changing. Slowly.
• GECs have finally embraced the
tele-series format with season-
based programming
• The value:volume ratio is reversed
in such programming as compared
to the daily / weekly soaps.
• For the past 20-odd years, the
content has largely mirrored
American programming of the
70s-80s, with our soaps
comparable to content like the Bold
& The Beautiful, Santa Barbara,
Dallas, etc.

22. Source: FICCI-KPMG Report 2017
TV – Key Points
• Digitisation – increased revenue for the broadcaster, should lead to
more investment in content (& hence better quality content)
• Global proliferation of Indian-origin content is increasing, albeit for
the Indian diaspora only. This is THE BIG opportunity.
• Indian animation on TV is starting to matter.
• Hindi GECs are exploring new content programming & a changed
value:volume mix in revenue models.
• Lack of quality viewership measurement systems (CPRP v/s CPT)
is an issue. Hopefully, BARC should resolve this.
• Targeted advertising is the next step

23. Source: FICCI-KPMG Report 2017
Digital – Growth galore!
15
22
30
44
60
77
102
134
174
226
294
0
50
100
150
200
250
300
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Digital is expected to quadruple its size in the next 5 yrs

24. Source: FICCI-KPMG Report 2017
Telecom Base – Volume galore!
Tele-Density: 88.00
Urban: 165.04, Rural: 52.84
What’s coming?
LTE!
As of December 2016
Telecom Service
Providers
Subscribers
Bhar3 Airtel 26,58,52,605
Vodafone 20,46,86,930
IDEA 19,05,17,876
BSNL 9,67,87,880
Aircel 9,08,75,553
Reliance 8,65,44,929
Jio 7,21,57,644
Telenor 5,44,69,499
Tata 5,29,77,786
Sistema 58,77,613
MTNL 36,25,895
Quadrant 29,99,158
TOTAL 1,12,73,73,368

25. Source: FICCI-KPMG Report 2017
Digital – global comparison!
• India has the lowest
net penetration
among all
developing
countries and much
lower than the
developed ones.
• Despite that, India
has more internet
users than the US.
• % of Broadband
connections
growing rapidly
Avg Broadband speed % of connections > 4MBPS
2014 2015 2014 2015
South Korea 25.3 20.5 96% 96%
Hong Kong 16.3 15.8 89% 92%
Japan 15.0 15.0 87% 90%
Singapore 12.2 12.5 83% 87%
Taiwan 9.5 10.1 78% 88%
New Zealand 7.0 8.7 77% 87%
Thailand 6.6 8.2 85% 93%
Australia 6.9 7.8 66% 72%
Malaysia 4.1 4.9 39% 53%
China 3.8 3.7 34% 33%
Indonesia 3.7 3.0 35% 17%
Vietnam 2.5 3.4 14% 31%
Philippines 2.5 2.8 9% 10%
India 2.0 2.5 7% 14%
24%
53% 46%
60%
87% 90% 86%
0%
20%
40%
60%
80%
100%
India Brazil China Russia USA UK Japan
Internet Penetration

26. Source: FICCI-KPMG Report 2017
The Digital Business – A BLITZ of growth!
0
100
200
300
400
500
600
700
800
900
1000
2016 2017 2018 2019 2020 2021
22 24 26 29 32 35
390
475
575
690
821
969
MilionsofUsers
Internet Users
Wired Wireless
60 74 90 110
136
161
17
28
44
64
91
133
0
50
100
150
200
250
300
350
2016 2017 2018 2019 2020 2021
INRBillions
Digital Advertising Growth
Web Advertising Mobile Advertising
75%
20%
17%
50%
8%
30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2021
2G 3G 4G
49%
75%
39%
16%
10% 6%
2% 3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2021
Video Web & Other Data Streaming Audio File Sharing

27. Source: FICCI-KPMG Report 2017
Content - Global Digital Platforms

28. Source: FICCI-KPMG Report 2017
Indian Digital Platforms

29. Source: FICCI-KPMG Report 2017

30. Source: FICCI-KPMG Report 2017
Business Models

31. Source: FICCI-KPMG Report 2017
YouTube
• Clear Market leader:
o YouTube has over 1 billion users — 1/3rd of all net users see at least 1
YouTube video everyday.
o People watching a YouTube video online has grown 40% & watch-time has
grown ~50%, annually for the past 2 years
o Creator revenue has increased 50% annually for the past three years.
o All of the top 100 global brands run ads on YouTube
o YouTube has paid out over $1 billion for legitimate content claims
• YouTube has launched local versions in more than 88 countries & in 76
different languages (covering 95% of the Internet population).
• Over 50% of YouTube views come from mobile devices. On mobile, the
average viewing session is now more 40 minutes.

32. Source: FICCI-KPMG Report 2017
Digital – No more a ‘also’ platform
• The Digital platforms of web, mobile & web-connected smart TVs are the
present & the future.
• Content expected to follow a parallel trajectory to Cable & Satellite TV.
• Content consumption modes & patterns are changing with a large number
of sub-18-yr-olds finding their ‘stars’ online.
• YouTube is taking the Indian market very seriously and has set up their
7th global ‘YouTube Space’ & also a ‘YouTube Educator Lab’ in India, in
partnership with Whistling Woods.
• ANALYTICS & TARGETING – Audience analytics, Content-based
analytics, Predictive analytics, Campaign analytics

33. Source: FICCI-KPMG Report 2017
The Opportunities in Digital
• IP Creation
• Digital is a writers’ medium – HOW?
• Look beyond digital as JUST a 3rd screen with limited censorship
• Multi-formatting ALL content to include Digital platforms (10% extra effort)
• Specialised writing / content structure for ‘Indian’ digital platforms
• Utilising the entire spectrum of the platform – clickable / interactive video,
AR/VR (360 deg video, etc), gamification of content & more
In any industry, building volume is hard. India already has the volume and is
likely to be the largest digital free market by 2020-22. We now need to build
value to each unit of volume. Only way to do it is quality.

34. Source: FICCI-KPMG Report 2017
Content structure for various platforms
Film TV Digital VR/AR
Format
110-180 mins
60-100 scenes
1-8 shots per scene
22–44 mins
3–60 mins
???
(15 mins – health
advisory)
Fiction
Content
Structure
Primarily stand-
alone, marginally
serial
Primarily serial,
marginally stand-
alone
Primarily serial,
marginally stand-
alone
???
(Yet to be laid
down)
Viewing
details
2D & 3D, fixed
frame, large
screen, captive
community viewing
2D, Fixed frame,
small screen,
primarily family,
some individual
viewing
2D, Fixed frame,
mini screen,
individual non-
captive viewing
2D &3D, No fixed
frame, individual
viewing, captive
audience
USP
Audio-visual
narrative spectacle
Story & Character
development
High concept,
writing-focused,
pace is critical
Immersive,
interactive, ???

35. Source: FICCI-KPMG Report 2017
31
35
40
45
51
60
70
81
96
112
132
0
20
40
60
80
100
120
140
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Animation & VFX
Animation, VFX & Post-Production
• The industry has shown
growth on the back of
strong VFX / post-prodn
growth, but Animation
has not grown as much.
• Lack of original IP
creation is a major
reason of the low growth
of the Animation
industry.
17.2%
16.4%
4
6
1
4
1
5
3 3
0
4
0
1
2
3
4
5
6
7
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Animation Films released theatrically

36. Source: FICCI-KPMG Report 2017
22% 20% 18% 16% 15% 14% 13% 13% 12% 11%
13% 12% 11% 11% 10% 10% 9% 9% 8% 7%
22% 23% 25% 28% 32% 35% 37% 39% 42% 44%
44% 45% 45% 45% 43% 42% 40% 39% 39% 38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Animation Services Animation IP Creation VFX Post-Prodn
7.6 8.0 8.1 8.3 8.9 9.7 10.8 12.1 13.2 14.24.5 4.7 5.1 5.6 6.1 6.8 7.5 8.2 8.7 9.57.7 9.3 11.3 14.4 18.9 24.0
30.2
37.6
46.7
57.8
15.5 17.7 20.4
22.8
25.7
29.0
32.8
37.7
43.3
50.2
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Animation Services Animation IP Creation VFX Post-Prodn
Animation, VFX & Post-Production
• Even though all
areas of the
industry are
growing, the
growth is disparate
between Animation
V/S VFX & Post-
prodn.
• From a 65:35
ratio in 2012, the
sub-segments
reach a 82:18 ratio
in 2020.

37. Source: FICCI-KPMG Report 2017
Animation on Indian Screens
While, only 3 out of the top 10 characters on Indian TV are of Indian
origin, 7 out of the top 10 episodes are for Indian shows

38. Source: FICCI-KPMG Report 2017
13 15
19
24
27
31
37
44
52
61
71
0
10
20
30
40
50
60
70
80
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Gaming
Gaming
• Grew over 20%, on the back of
mobile gaming.
• With 1bn+ users, increasing travel
time & a young population, India is
one of the faster-growing low-end
mobile gaming markets in the world
18.2%
46% 49% 51% 52% 55% 57%
39% 35% 32% 30% 28% 26%
15% 16% 17% 18% 18% 17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 2017 2018 2019
Mobile Console PC & Online
16.2%

39. Source: FICCI-KPMG Report 2017
9
11
10 10
11
12
14
16
19
22
25
0
5
10
15
20
25
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Music
Music
• The Music industry shows
double digit growth for the first
time in 3 years.
• Over 50% of Indian web users
access unlicensed content.
• Films fuel ~70% of the Music
industry (Not good!)
• Indian non-film music (Indie /
pop / rock / regional) is
struggling, with only Religious &
Indian Classical music
managing to survive.
• Very little structured education
& training in music.
13.8%
10.2%
40.0%
30.0%
10.0%
20.0%
Music Consumption
by Genre
Bollywood
Regional
International
Others

40. Source: FICCI-KPMG Report 2017
11
13
15
17
20
23
26
31
36
41
48
0
5
10
15
20
25
30
35
40
45
50
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
INRBillions
Radio
Radio
• The growth in 2016 has been
built around increased ad
revenue from politics,
entertainment, real estate & e-
commerce.
• The shift to radio is as it is a
cost-effective advertising
vehicle, as compared to TV.
• Phase III license bids have
been strong and the sector
should see good growth 2016
onwards.
16.1%
14.6%

41. Source: FICCI-KPMG Report 2017
Sports
• Sports is one of the largest
content providers to the
broadcast, live events &
digital industries.
• BCCI continues to be the
most efficient & productive
sports body in India.
• Kabaddi’s rise is worthy of
several case studies. 2016
saw 2 seasons of PKL + the
Kabaddi World Cup
• IPL broke the sports-watcher
sterotype with 41% female &
50% rural viewership.
IPL
Reach Investment
ISL
PKL
IPTL
PWL
PBL
UBA
HIL
Gender Balance in Social Media popularity:
Of the top 10 athletes rated by popularity, the ratio
of men: women is 60:40.
The list has PV Sindhu, Sania Mirza, Sakshi Malik &
Dipa Karmakar joining Virat Kohli, MS Dhoni, Sachin
Tendulkar, Yuvraj Singh, M Ashwin & Rohit Sharma.

42. Source: FICCI-KPMG Report 2017
Live Events
• Yet to be ‘organised’
• Growth of ~33%
• Margin growth flat
• Government / Political spending (elections / events) still the largest
contributor
• Licensing issues
• Taxation issues
• Live IP-based entertainment on the rise:
o Stand up Comedy
o Theatre

43. Source: FICCI-KPMG Report 2017
Theme Parks
• Current size Rs 29.3 billion. Expected to grow to Rs 70
billion by 2021 with a 19.1% CAGR.
• Destination tourism based around entertainment yet to
consolidate
• Evolution:
o 1980s – Appu Ghar
o 1990s & 2000s – Esselworld
o 2010s – Imagica & Wonderla
o 2016 – INR 300 bn+ investment committed for 10 parks across India

44. Source: FICCI-KPMG Report 2017
Theme Parks

45. Source: FICCI-KPMG Report 2017
Jobs in M&E
• As per the NSDC, by 2022, the
Media & Entertainment industry
would be requiring 16.5 lakh
professionals, ~85% of these in
the Film, TV & digital verticals.
• The media industry as a whole still
lacks sufficient world-class training
facilities to enable professionalism
and best practices.
• Significant government-
intervention and private
investments will be needed to
correct this imbalance
-
1.00
2.00
3.00
4.00
5.00
6.00
2014 2017 2022
Film TV
Print Digital
Radio Animation, VFX, Gaming

46. Source: FICCI-KPMG Report 2017
What are the pain-points of the Indian M&E Industry?
• Lack of original Intellectual Property creation leading to lack of a globally
merchandisable brand.
• M&E Education & Training
o Of the 4 lakh people employed, nearly 75% involved in content creation have
no formal training.
o Very few world-class Film & Media institutes with a combined output of
approx 500 graduates a year, with 200 of them being from a single institute.
• Innovation – Lack of original formats or technical / narrative innovation.
• Piracy - Affects every sector of the industry & causes nearly 35%
revenue reduction

47. Source: FICCI-KPMG Report 2017
The Great Opportunities in M&E
In the M&E industry, building volume is hard. India already has the
volume. We now need to build value to each unit of the already
existing volume. This is done by enhancing quality.
The big opportunities in Indian M&E are:
• IP creation – interoperable IPs across Film, TV, Digital
• Education in M&E
• Content for Digital platforms
• Screens for Film

48. Thank You!
Chaitanya Chinchlikar
chaitanya.c@whistlingwoods.net
Vice President - Business Development, Whistling Woods International
Chief Technology Officer, Whistling Woods International
Vice President - Strategy, Mukta Arts Ltd
Business Head - Digital Media, Mukta Arts Ltd