Marketing Practices In Indian Media and

Entertainment Industry
1. Introduction
The Indian entertainment and media (E&M) industry has out-performed the Indian economy
and is one of the fastest growing sectors in India with a size of Rs. 584 billion and a
Compounded Annual Growth Rate (CAGR) of 15% between 2005 and 2008. The key drivers of
the growth of Indian Media and Entertainment industry have been
the rising spend on entertainment by the growing Indian middle class, regulatory initiatives,
increased corporate investments and integration of existing players across the value chain.
The industry has also been driven by increasing digitization and higher internet usage over the
last decade.
1.1 Size and Growth of the Indian Media and Entertainment Industry
The Media and Entertainment industry comprises of the following segments:
1.Television
2.Print
3.Films
4.Radio
5.Music
6.Animation
7.Gaming
8.Internet Advertising
9.0ut of home advertising
1.2 Market Dynamics
a. The size of the Indian M&E sector increased from about Rs 805 billion (US$ 12.84
billion) in 2011 to almost Rs 965 billion (US$ 15.38 billion) in 2012, showcasing a yearon-year (y-o-y) growth of 20 per cent, according to PwC India.
b. India's television market expanded by 13 per cent with revenues increasing from Rs 340
billion (US$ 5.42 billion) in 2011 to Rs 383 billion (US$ 6.11 billion) in 2012.
c. Filmed entertainment recorded a growth of 17 per cent; revenues increased from Rs 96
billion (US$ 1.53 billion) in 2011 to Rs 112 billion (US$ 1.79 billion) in 2012.
d. The print sector continued to sustain its beneficiary position. The revenues are expected
to increase by more than 9 per cent compounded annual growth rate (CAGR) to reach
Rs 331 billion (US$ 5.28 billion) in 2017 from Rs 212 billion (US$ 3.38 billion) in 2012.

Figure 1

1.3 Various Segments :

1.3.1 Film Industry
Indian film industry is one of the largest in the world in terms of number of films over 1,000
movies are released yearly in India. Indian film segment is driven by the growth in multiplexes,
movie sell through, sale of content rights and movie merchandising. The size of the film
segment was estimated at about Rs. 117 billion in 2009(E) and the CAGR between 2005 and
2009(E) was about 15% .With a huge spread of the Indian diaspora and the growth of Brand
India, it has also made inroads in the international market.
The key revenue streams in the films industry are the box-office collections (i.e. collections
through multiplexes, collections through single screen cinemas and overseas movie
collections), home video entertainment (i.e. movie rentals, sell-through market and movieson-demand), movie content rights (i.e. movie content rights and movie remake rights) and
ancillary revenues (through in-cinema advertising, merchandising, music rights, internet rights
etc).
Institutional and international funding has been made available to the film segment only since
2000 after it has been accorded industry status. There has been an audience shift from the
single screen to the multiplexes. With the number of multiplex screens on the rise (increased
from 520 in 2007 to 747 in 2008 and is expected to go up to 1,405 in 2013), multiplexes are
expected contribute further to the share in revenue However, piracy is an important risk
factor which can threaten the growth of this industry.
The last four to five years have been characterized by several changes in the Indian film
segment, such as reduction in the contribution of domestic theatrical from about 78% in 2005
to about 72% in 2008, over 100% increase in the number of multiplex screens, availability of
organized funding.

1.3.2. Television Industry

The Indian television segment is the largest contributor in terms of size to the media and
entertainment sector and accounts for 40% of revenues. The television sector in India has
grown at ~12%p.a. (2007-2010) and is estimated to
continue this strong growth, owing to healthy advertising spends and increased penetration in
semi-urban and rural areas, mainly by DTH. By the end of 2011, the industry is estimated to
reach US$ 7.1 billion, a growth of ~14% over 2010.
Size of TV Industry

Figure 2
In 2010, subscription revenues contributed around 63% to the total television revenues and
stood at US$ 3.9 billion; while advertising constituted 33% at US$ 2.1 billion. The television
content constitutes approximately 4% to the total television market at US$ 260 million.
Despite one of the lowest average revenue per user (ARPU) for paid television in the world, TV
distribution dominated the total Television revenue pie and saw a strong growth of ~15% in
2010, largely on the back of rapid DTH expansion. TV Advertising which has a high
contribution towards broadcasters revenue grew at 13% in 2010.

1.3.3 Print Industry

Indian print media is one of the largest print media in the world. Indian print industry is one of
the contributor to media and entertainment industry estimated at US $ 3.7 billion in 2010
according to PwC. The Indian Print Media industry is estimated to have grown by 7.6% in 2008
and reaching around INR 172.6 billion in size. The industry is projected to grow at a CAGR of
9% over the next five years and reach around INR 266 billion in size by 2013. Hindi dailies
have the highest growth in readership. Regional players are expected to grow at a brisk pace,
both in terms of advertising revenue as well as market expansion. There are more than 62,000
newspapers printed in India, around 92% of which are published in Hindi & other vernacular
languages.
The structure of the Indian print media industry is highly fragmented with importance to
regional dominance. The Indian print media segment primarily comprises newspaper and
magazine publishing.

Figure 3
Categorization of players in the Print Industry
Category

Players

Dailies

Deccan Chronicle, The Times of India, The Hindu, Aaj Tak,

India Abroad, Deepika Global, Asian Age

Business

The Economic Times, The Financial Express, Business Line,

dailies

Business Standard

Weeklies

The Week, Outlook, India Today, Asha kiran, Panchjanya

and

weekly

Monthlies

Regional

Andhra Pradesh: Deccan Chronicle, Andhra Bhoomi, Hindi

Milap
Delhi: Hindustan Times, Pioneer
Maharashtra: Bombay Mid-day, Lokmat Times, Sakaal ,
Loksatta
West Bengal: The Telegraph, The Statesman

Film

Filmfare, Screen, Planet Bollywood, Indian Express Bollywood

related

Scoop, Apun Ka Choice, Indian Television, RedifIndia, Film

Trip, Star Dust

Computer

PC Quest, Cyber India, Data Quest, Voice & Data, Computers

related

Today, Express Computer, Silicon India

Others

The Onion, India Today Plus, Des Pardes, India Together,

Teens Today, Andhra Jyothi in telugu, Wow Hyderabad, Zee
Premiere, Showtime, Arcade, JAM, India Talkies

1.4 Key Players in Media and Entertainment Sector

2.Literature Review
Julia Hanna Improving Brand Recognition In Tv Ads published on June 7 2010
As per New research by HBS professor Thales S.Teixeira more than a third of viewers
skip over with digital VCRs or by switching channels or tuning out altogether when
pulsing or repeating brief images of brand is done.
The research focused on what viewers see, what causes their eyes to move to particular
elements of an ad, the image they were watching when they decided to zap a
commercial.
the degree of dispersion in eye-movement patterns was directly related to distraction,
and that farther away a person's gaze is from that of other viewers, the more likely this
person is to zap the commercial.
Theories abound as to the most effective strategy for crafting a TV commercialwhere
and how often to place a brand in the ad frame. Some suggest using small, nonintrusive
instances, while others recommend the hard-sell approach. There are also ideas about
placing the brand early in the commercial, late (the so-called mystery approach), or
early and late.
Mystery ads try to entertain and draw people in by getting them to puzzle through what
the commercial is selling, only revealing the answer at the end. But if a viewer watches
the ad for 15 seconds before zapping it, the ad is completely ineffective.
If you deliver it all at once, a person will tune out mentally. A better strategy would be
to deliver the information bit by bit and intersperse it with other, more appealing items.
The dilemma is that our findings show that brand images cause people to zap," Teixeira
says. "But they're a necessary evil; without the brand, viewers can't identify what is
being sold.
Changing the pattern of brand exposure can lower zapping rates, and that a "pulsing"
strategy in which the brand is inserted briefly and intermittently throughout the
commercial is most effective, resulting in an average decreased zapping of 8 to 10
percent.
"If the brand is woven into the story linenot too overt, not too in-your-faceit's
more likely that the consumer will get used to it and not have the urge to zap.
From a managers' perspective, altering the commercials to mimic a pulsing strategy is a
virtually cost-free fix for a significant payoff, with zapping rates for some commercials
reduced by as much as 25 percent in a lab experiment.

P Prasada Rao and Karthik Kannan Marketing Strategies of Bollywood Movies in India and
Overseas: An Empirical Study published on March 2008
This paper empirically proves how marketing has a definite impact on the returns of
Bollywood movies made by the Hindi film industry. The different marketing channels, which
can be used to create not just awareness but also increase the sale ability of the finished
product, have been aptly discussed in the paper.
Based on the data obtained from different websites dealing with the required information, a
Regression Analysis is conducted on a sample of 30 movies released during 2000-2006.
The following conclusion was drawn :
The movies are categorized under 4 broad categories:
1. High on Content and Aggressive Promotion

2. Low on Content and Aggressive Promotion

3.High on Content and Low on Promotion

4.Low on Content and Low on Promotion

Limitations:
Result would have been more relevant if each of the marketing channels could be
quantified.
Data is taken from sites such as Wikipedia, Bollywood mantra, box office india, imdb
etc. and has little credibility.
The sample size is very less.
The classification of movies with or without content is subjective in nature.

Bollywood, iipm
This paper focuses on the latest trends in the entertainment industry from
the glasses of movies and film production houses .
Focus is towards the changing trends in this industry.
The paper defines how the changing industry trends have led to
a. Corporatisation
b. Multinational studios,
c. Enhanced production values due to higher production costs
films making a sustained impact in the international arena
d. Increased investments in promotions as well as marketing entertainment
properties leading to more and more brands jumping onto the
entertainment bandwagon.

The paper defines how Film-goers love a certain element of surprise and the magic of discovery.This leads
to modern day producers involving an outside advertising or marketing agency to obtain a different perspective and
present positive criticism.
Film marketer has the advantage of a choice from a large menu of sponsorships and branding opportunities during the prerelease, release and post-release phases of each film.
Only through conclusive research that a film marketer can create the right fit in terms of exposure versus the investment
that it offers to various brands.
A well-researched script forms the back-bone of a good marketing strategy. It is through your research that you define your
audience based on which you project which hepls you formulate a foolproof budget
Lets implement the above theories to study marketing startegies of famous Movies of bollywood

Dil Chahta Hai- was made based on the presumption that the size of the urban Indian population is growing
everyday and maybe they would like to see some reflections of their lives. Expectedly, the film did extremely well in
Mumbai and Delhi, but was only semi-successful in Dhanbad and Hoogly.
Kabhi Khushi Kabhi Gham was made on the pretext that Indians love larger than life films, and demonstration
effect in the middle income group Indians is the highest. It was estimated that their aspiration levels were beyond
belief. K3G happened and was a super hit.
Jhankaar Beats did very well in Mumbai. Indias financial capital is fast aping a London or a New York. The fast life
people are leading, the city itself decaying and aspirations skyrocketing. Finding pleasures in simple things and
relationships is something that city dwellers crave. Jhankaar Beats played on these emotions. The film was a semihit.
Kal Ho Naa Ho: Well, there are films that do not need research. Just pick up the story line of an age-old hit film,
give the reins in the hands of King Khan, add dollops of Manhattan, some good music and Hollywood style packaging
and what you have is a super hit.

The paper discusses the logical way of promoting an d marketing a film in this bizarre place called Bollywood .
The focus is on 6PS of MAARKETING

PRODUCT :The base for a well-defined film marketing strategy starts with the film itself. A well
researched script with a well-woven screenplay is where the core of the film-marketing strategy for a
film should be invested. It is not about who sees the film but also about catering to a definitive audience
who watches your film in theatres, and more often than not, more than once. While other elements of
marketing focus on attracting these audiences it is this aspect of marketing i.e. the product that aims at
satisfying these audiences.
Placement: This element makes the Product element possible. It is true that an audience will be satisfied only when they
are attracted to go into the theatre to watch the film. It is placement that accounts for attracting the audience into
crowding the theatre. Placement as a term is used to describe the modus-operandi of placing the communication and
promotion strategy of the film on to media and non-media platforms available in the industry today.
There is a complete media-mix that should be put into place usually 15% to 25% of the production cost of the film is
invested into the marketing of the film in Bollywood. But then there are films like Lagaan, Boom, Out of Control, Khel and
others who have spent as much as 40% of their production cost on marketing. But only Lagaan out of all these films became
a super-hit and needles to point out that that had a lot to do with the central theme of the film.
Today it makes perfect sense to collaborate with one or more media partners in order to ensure maximum focused publicity
of your film through certain guided platforms.

People: The positioning of the film has a lot to do with the personification of the film. Personification finally is the key to
creating a brand out of the film. Lagaan is brand India and Cricket.
It is the central characters (not the actors) of the film that should enable the making of a brand out of your film. There
should be a well-defined promotion plan that has to be put-into place for promoting the people of the film (both on-screen
and the technical team). The build-up should be such that without over-exposing the team there should be enough flurry of
activity that will catapult the audiences into the character of the film even before they see the film.

3. Analysis

4. Future Outlook
4.1 Growth Potential of the Entertainment Industry
The E&M industry is a cyclical industry that grows faster when the economy is expanding. It
also grows faster than the nominal GDP during all phases of economic activity due to its
income elasticity wherein when incomes rise, more resources get spent on leisure and
entertainment and less on necessities. Further, consumption spending itself is increasing due
to rising disposable incomes on account of sustained growth in income levels, and this also
builds the case for a strong bullish growth in the sector.
The size of E&M in India is currently estimated at INR 353 billion and is expected to grow at a
compounded annual growth rate of 19 percent over the next five years.
The television industry continues to dominate the E&M industry by garnering a share of over
42 percent, which is expected to increase by a further 9 percent to reach about 51 percent.
The share of the film industry, which currently stands at 19 percent, is not expected to change
materially over the next five years. Print media, which stands at over 31 percent, is projected
to lose some of its share in favour of the emerging segments.

Figure 4

4.2 Future Projections of various segments

4.2.1 Television
Subscription revenues are projected to be the key growth driver for the Indian television
industry over the next five years. Subscription revenues will increase both from the number of
pay TV homes as well as increased subscription rates. The buoyancy of the Indian economy
will drive the homes, both in rural and urban (second TV set homes) areas to buy televisions
and subscribe for the pay services. New distribution platforms like DTH and IPTV will only
increase the subscriber base and push up the subscription revenues.

4.2.2 Filmed entertainment

Indians love to watch movies. And advancements in technology are helping the Indian film
industry in all the spheres film production, film exhibition and marketing. The industry is
increasingly getting more corporatised. Several film production, distribution and exhibition
companies are coming out with public issues. More theatres across the country are getting
upgraded to multiplexes and initiatives to set up more digital cinema halls in the country are
already underway. This will not only improve the quality of prints and thereby make film
viewing a more pleasurable experience, but also reduce piracy of prints.

4.2.3 Print media

A booming Indian economy, growing need for content and government initiatives that have
opened up the sector to foreign investment are driving growth in the print media. With the
literate population on the rise, more people in rural and urban areas are reading newspapers
and magazines today. Also, there is more interest in India amongst the global investor
community. This leads to demand for more Indian content from India. Foreign media too is
evincing interest in investing in Indian publications. And the internet today offers a new
avenue to generate more advertising revenues.

4.2.4 Radio

The cheapest and oldest form of entertainment in the country, which was hitherto dominated
by the AIR, is going to witness a sea-change very shortly. In 2005, the government opened up
the sector to foreign investment and this is the key factor that will drive growth in this
sector. As many as 338 licenses are being given out by the Indian government for FM radio
channels in 91 big and small towns and cities. This deluge of radio stations will result in rising
need for content and professionals. New concepts like satellite, internet and community radio
have also begun to hit the market. Increasingly, radio is making a comeback in the lifestyles of
Indians.

4.2.5 Internet advertising

An estimated 28 million Indians are currently hooked on to the internet. And this rising
number is leading to the growth of internet advertising, which today stands at approximately
INR 1 billion. The internet is being used for a variety of reasons, besides work, such as
chatting, leisure, doing transactions, writing blogs etc. This offers a huge opportunity to
marketers to sell their products. And with broadband becoming increasingly popular, this
segment is expected to grow by leaps and bounds.

4.2.6 Music
The industry has been plagued by piracy and had been showing very sluggish growth over the
last few years, both in India and globally. However, mobile music and licensed digital
distribution services are projected to fuel the recovery of the music industry the world-over.
The pace of growth in mobile music reflects the fact that consumers increasingly view their
wireless device as an entertainment medium, using those devices to play games and listen to
music, while carriers are actively promoting ancillary services such as ringtones to boost
average revenue per user. Ringtones currently constitute the dominant component of the
mobile music market. Licensed digital distribution services are also contributing significantly to
growth in all regions.

4.2.7 Live entertainment

This segment of the entertainment industry, also known as event management, is growing at a
fast and steady rate. While this industry is still evolving, Indian event managers have clearly
demonstrated their capabilities in successfully managing several mega national and
international events over the past few years. In fact, event managers are also developing
properties around events. The growing number of corporate awards, television and sports
events are helping this sector. With rising incomes, people are also spending more on
wedding, parties and other personal functions. However, issues like high entertainment taxes
in certain states, lack of world-class infrastructure and the unorganized nature of most event
management companies, continue to somewhat check the potential growth in this segment of
the industry.

4.2.8 Out-of-home advertising

Outdoor media sites in India are predominantly owned or operated by small, local players and
are typically, directly marketed by them to advertisers and advertising agencies. However, this
segment too is witnessing a sea-change with technological innovations. Growing billboard
advertising is fuelled by technologies such as light-emitting diode (LED) video billboard. This is
a segment that is seeing interesting technological innovations across the world and is likely to
evolve in India too in the short-term.

4.3 Challenges and opportunities to the industry:

1. Consumer needs are expanding beyond the mass media and segmented media to Lifestyle
Media, a new approach that will help consumers maximise their limited time and attention to
create a rich, personalised and social media environment. This approach presents many
opportunities for the industry to create new avenues to generate revenue.
2. Knowledge of consumer activity rather than exclusive ownership of content or distribution
assets will become the basis for competition. Businesses that capture consumer activity data
and use it to inform business and advertising models will be positioned to succeed.

3. Media marketplace will provide a structure to capitalise on the Lifestyle Media opportunity.
Pull-oriented media consumption models, such as a media marketplace, in which the
consumer is furnished with robust search, research, customisation, configuration and
scheduling tools will capture the opportunity associated with Lifestyle Media better than
minor modifications to existing business practices. Participants in media market place must
collaborate on this transformation.
4. Early movers in establishing media marketplaces will have a significant advantage over late
entrants because of network effects, whereby the value of the market place increases as the
number of participants increase.
5. Media market places will be economically viable only if operational efficiencies can be
realised through consumer activity measurement capabilities and supporting systems.
6. Significant advancements in audience measurement technology will be needed to capture,
analyse and standardise consumer activity data across platforms.

5. References