Business of Culture in India

Business of Culture in India

S. Ananth

Research Fellow

Krisani Knowledge Resources

Hyderabad

Project Commissioned by Culture: Industries and Diversity in Asia (CIDASIA)

Research Programme

Centre for the Study of Culture and Society

Bangalore

May 2008

CONTENTS

1. Introduction

2. Newspaper Industry in India

3. Filmed Entertainment Market in India

4. Film Distribution – Multiplex Phenomenon

5. Funding the Film Business

6. Overseas Market for Indian Films

7. Home Video Market

8. Television Market in India

9. Cable TV Market in India

10. DTH Market in India

11. IPTV Market in India

12. Radio Market in India

13. Music Market in India

14. Internet Usage in India

15. Gaming Market in India

Global Gaming Market

16. Animation Sector in India

17. Amusement Parks in India

18. Retail Market in India

19. Luxury Market in India

Luxury Watch Segment in India

Luxury Car Segment in India

20. Wedding Market in India

21. Gambling Market in India

22. Advertising Market in India

23. Out of Home Advertising Market in India

24. Art Market in India

25. Sports Market in India

Horse Racing In India

26. Entertainment Companies in India

27. Emerging Trends in the Culture Industry

28. Select Bibliography

2

Business of Culture in Contemporary India

Introduction

This report titled the ‘Business of Culture in India’ attempts to compile statistical

information as well as analyse the most important business trends in Culture Industry of

contemporary India. The report is meant to provide a snapshot of the major components

of the culture industry, the economics of the various components as well as a brief sketch

of the regulatory environment in the industry. The report lays more emphasis on the

market trends, the size of the market as well the latest developments rather than an

analytical analysis of the nature of the culture industry. Wherever possible, the report has

tried to understand the largest segment of a particular business rather looking at each and

every component. This is focus on the larger segments of a particular business is

essentially meant to retain the focus on the culture industry but also to avoid looking at

too many small segments. In short the report attempts to understand the business and

business dynamics rather than (re)interpret the culture industry in India. An

understanding of the business dynamics has become essential as the famous business

adage ‘price is what you pay, value is what you get’ becomes important in the business.

The Indian media segment, especially the film business, has grown after it was

accorded the status of industry in 2001. New business and revenue models have replaced

the traditional models. The recent economic boom has not only blurred the lines on which

a particular price can be placed in a particular industry. The boom has also replaced a

number of traditional valuation models with the industry now laying more emphasis on

‘valuations’ rather than cash flows as an important barometer for understanding the

businesses that comprise the culture industry.

Newspaper Market in India

The newspaper market like the television market is becoming more stock market

oriented in its ownership. This trend is more like most of the western countries, where

stock market ownership is an important feature of the newspaper market. India is

estimated to have 393 newspapers

Readership Survey 2006 claims that the number of readers increased from 206 million to

222 million over the previous year. Dailies continue to grow, adding 12.6 million readers

from last year to reach 203.6 million while there has been a drop of 7.1 million magazine

readers

any newspaper in India

Seven of 10 of the world’s 100 best selling dailies are now published in Asia.

China, Japan and India account for 60 of them. The five largest markets for newspapers

are: China, with 98.7 million copies sold daily; India, with 88.9 million copies daily;

1 and more than 200 million readers2. The National3. It has been pointed that there are another 360 million readers who do not read4.

1

http://www.wan-press.org/worldpresstrends/articles.php?id=22 (Last Visited 14 February 2008).

2

2008).

http://www.guardian.co.uk/media/2007/feb/05/pressandpublishing.business (Last Visited 14 February

3

February 2008).

http://www.thehindubusinessline.com/2006/08/30/stories/2006083004170500.htm (Last Visited 14

4

“Adding Pages”, Business Standard, 12 January 2007, p.13.

3

Japan, with 69.1 million copies daily; the U