Media and Entertainment

OUTLINE

  • The Indian film industry will be valued at INR 204 billion by 2019.
  • Revenue in 2014 was at INR 1,026 billion
  • India has the second largest TV market in the world
  • There are over 168 million television households in 2014
  • Home to over 800 TV channels
  • Total market size of the Indian entertainment industry stood at INR 1,026 billion in 2014, growing by 14.2% over 2013
  • The industry is expected to register a CAGR of 13.9%, reaching INR 1,964 billion in 2019
  • India has a large broadcasting and distribution sector, comprising approximately 7800 satellite TV channels, 6000 multi-system operators, around 60,000 local cable operators, 7 DTH operators and few IPTV service providers
  • India has 168 million television households, 997,000 newspapers, close to 2,000 multiplexes and close to 300 million Internet users – second largest base after China, and is expected to reach 640 million by 2019
  • By 2019, digital advertising is projected to have the highest CAGR of 30.2%, while all other sub-sectors are expected to grow at a CAGR of 8% and 18%

FDI POLICY

Broadcasting Carriage Services:

  • Foreign Direct Investment (FDI) in Teleports, DTH, Multi-System Operator, cable networks in DAS areas, mobile TV, Headend-in-the-Sky Broadcasting Services are allowed up to 74% with FDI, up to 49% under the automatic route. FDI beyond 49% (up to 74%) is permitted under the government route
  • FDI in local cable networks and MSO in non-DAS areas is allowed up to 49% under the automatic route

Broadcasting Content Services:

  • FDI in FM radio is allowed up to 26% under the government route
  • FDI uplinking of ‘News and Current Affairs’ TV channels is allowed up to 26% under the government route
  • FDI uplinking of ‘Non-News and Current Affairs’ TV channels/downlinking of TV channels is allowed up to 100% under the government route

Print Media:

  • 26% FDI under the government approval route is allowed in the publishing of newspapers and periodicals dealing with news and current affairs
  • 26% FDI under the government approval route is allowed in the publication of Indian editions of foreign magazines dealing with news and current affairs
  • 100% FDI under the government approval route is allowed in publishing/printing of scientific and technical magazines/speciality journals/periodicals
  • 26% FDI under the Government approval route is allowed in publication of facsimile editions of foreign newspapers. However, foreign investment up to 100% is allowed in case of foreign publishing houses bringing out facsimile editions of their own newspapers through wholly owned subsidiary

Disclaimer: Investments are subject to fulfilling security conditions, rules and regulations of the Ministry of Information and Broadcasting and all other relevant legalities

SECTOR POLICY

  • In December 2011, the Indian government passed ‘The Cable Television Networks (Regulation) Amendment Act’ for digitisation of cable television networks by 2014, cable operators under the digitisation regime are legally bound to transmit only digital signals, while customers can access subscribed channels through a set-top box (STB)
  • In phase I and II, 33 million STBs have been installed. For phase III and IV it is estimated that around 110 million STBs will be required
  • Co-production treaties with various countries such as Italy, Brazil, UK and Germany are to increase the export potential of the film industry

FINANCIAL SUPPORT

Key Provisions of the Union Budget 2015-2016:

  • INR 1000 million has been allocated to encourage the growth of community radio stations
  • INR 5000 million has been allocated for launching a pan-India programme named Digital India and a national rural internet and technology mission for services in villages and schools, training in IT skills and e-kranti for government service delivery and governance scheme
  • INR 1000 million has been allocated for launching a programme to promote good governance
  • Basic custom duty on digital still image video camera with certain specification reduced to nil
  • Service-tax to be levied on service provided by way of access to amusement facility, entertainment events or concerts, pageants, non-recognised sporting events, etc.

State Incentives:

  • Available depending upon the number of jobs created, area of investment, etc.
  • Animation and gaming: incentives for units in SEZ as specified in the Act
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