Media & Entertainment

Introduction

The Indian M&E sector is making significant space for itself on global canvas owing to which many international production houses and business conglomerates are venturing into the country. For instance, Disney’s big stake buy in UTV Software Communications majorly drove the foreign direct investment (FDI) in 2011-12 in the sector, which stood at Rs 32.64 billion (US$ 588.95 million) 72 per cent higher than Rs 18.87 billion (US$ 340.86 million) received in 2010-11.

Television

Healthy advertisement spends coupled with increased penetration in rural and semi-urban areas are propelling the growth of the television sector in India. Emergence of direct-to-home (DTH) technology in a big way has made the television industry mark a value of US$ 7.1 billion by the end of 2011, which was 14 per cent higher than that in 2010.

A report prepared by KPMG, along with an industry body, has stated that while the current level of penetration is estimated at around 60 per cent, there is still a room for expansion in the Indian TV landscape. The report estimates that pay-TV subscription revenue will increase from 65 per cent in 2011 to 69 per cent by 2016.

Radio

While TV is a captive medium, radio allows freedom of movement. Other than being a popular medium with the youth, radio has far-reaching impact on people in remote places.

Recently, Yashwantrao Chavan Maharashtra Open University (YCMOU) has launched an interactive live web-radio from its campus studio in Nashik, Maharashtra. Through this technology, the university intends to connect students from anywhere in the world to experts of various subjects and enable them to listen to lectures, hold discussions and interviews.

Online and Mobile Entertainment

Internet has emerged as one of the strongest mediums to reach out to people, due to better broadband speeds, easy availability and reasonable pricing of internet-enabled devices and awareness among today’s youth. The online viewership of video content is on an upsurge – be it for news or for entertainment (social networking, shopping, et al). Due to this increased popularity, mobile phones have become the second most-viewed screen for Indian consumers. About two crore internet users in India are opting for the service over their mobile phones, according to a study by online audience and ad measurement platform Vizisense.

Social networking sites have also gained a lot of attention over past few years. They reach to about 82 per cent of the world’s online population and the numbers are increasing day by day. India’s small and medium enterprises (SMEs) are also looking to capitalise this medium as social media in the country is growing at 100 per cent and 129.3 million Indians are anticipated to join the forums. SMEs are looking forward to reach and develop a strong consumer base through social networking sites. An industry body has even joined hands with Facebook to organise road shows to spread awareness among SMEs about the benefits of using social media for business transformation.

Films

The Indian film fraternity will complete its century in 2013. The industry is anticipated to grow by 9 per cent per annum till 2015 to reach US$ 2.8 billion, according to Deloitte.

In an effort to make India a hub for international films, the Ministry of Information and Broadcasting (I&B) is contemplating to establish a Film Commission that will initially act as a single-window clearance agency to grant permits for shooting. If the initiative gets materialised, international production houses will save a lot of time and energy which are currently diverted in seeking multiple approvals.

Investments

The Indian advertising industry clocked revenues worth Rs 25,594 crore (US$ 4.62 billion) in 2011, which were 8 per cent higher than the figures achieved in 2010, according to a report by Pitch Madison India.

• The fast moving consumer goods (FMCG) sector has numerous brands and categories to offer to consumers. The sector players keep introducing new products and hence, seek sales-support with ads and promos. The industry segment contributes more than half to TV advertising and 9 per cent to the print media.
• In order to target multi-tasking and busy viewers, M&E industry major Zee Entertainment Enterprises has launched its over-the-top (OTT) distribution platform called Ditto TV. The new service, which facilitates live TV channels and on-demand video content to users on their mobile phones, tablets, laptops, desktops, entertainment boxes and connected TVs, was launched in Februry 2012 and also offers features such as adaptive streaming, an electronic program guide and a content recommendation application.
• Aegis Group has acquired Communicate 2 to merge it with its iProspect global network. Communicate 2 is a specialist performance marketing firm that counts search marketing, digital strategy consulting, social media and digital content production as its forte.
• Getit, pioneer of the concept of Yellow Pages in India, has appointed Aidem ventures to handle its corporate advertising sales for next 5 years. Getit has upgraded itself into a digital media firm that specialises in local search and classifieds. It is India’s leading ‘directional media’ service provider that facilitates quality prospects to businesses and brands across the categories. Aidem is an independent media consulting, marketing and advertising, sales company.

Government Initiatives

Apart from setting up a Film Commission, the Ministry of I&B is also working on an incentive package in co-operation with the Ministry of Tourism wherein they would promote film tourism.

Ms Ambika Soni, Minister for I&B, India and her counterpart, the Poland Minister for Culture and National Heritage, Mr B Zdrojewski, will sign an audio-visual co-production agreement. The two ministries would also hold discussions on how to preserve film heritage at the National Film Archives of Poland.

Road Ahead

Indian animation industry is at a very nascent stage and is expected to grow in the recent future. Indian players are majorly acting as ‘service providers’ wherein they are involved with labour-intensive production and post-production activities. However, they are increasingly adapting to international animation standards and are learning modern techniques to come at par. Industry experts, considering the potential in Indian participants, expect the country’s animation industry to grow at a compounded annual growth rate (CAGR) of about 23 per cent to reach US$ 961 million by 2013.

Exchange Rate Used: INR 1 = US$ 0.01805 as on September 13, 2012

References: Media Reports, Press Releases, Deloitte Report

Affluent Indians

Interesting insights about Affluent Indians

In first-of-a-kind survey launched by Nielsen, some very Interesting statistics have been revealed about certain Lifestyle habits of affluent Indians.

The Nielsen Upper Middle and Rich (UMAR) survey looks at Rich Indian’s Media consumption habits, their gym memberships, shopping habits frequency of spends, and consumption of various FMCG categories.

Who are Affluent Indians?

The survey looked at various parameters such as employment of domestic help (maid/driver, holiday trips abroad, dining out habits, Laptop/Desktop ownership, Air-Conditioner, Car, Television, Microwave, Washing Machine, and number of family members with internet connection at home and the type of connection used.

Based on above parameters, there are total of 25 Lakh affluent households in India, out of which

22 lakh belong to the Upper Middle segment households that own a car and a computer, but without an LCD and a holiday abroad.

2 Lakh belong to Upper Upper Middle segment households that are owners of a car, a computer, an LCD, but miss a holiday abroad.

1 Lakh belong to the Rich households, who are owners of a car, a computer, an LCD, and also a holiday abroad

The UMAR Survey also released its list of top 10 most richest cities in India. Now, I had published a list few days back listing down the top 10 richest cities in India, however they were purely based on income of people living in that city. Whereas, this list defines ‘affluence’ based on lifestyle and consumer durables’ ownership of a household rather than monthly income, education, etc.

The Top 10 Affluent cities in India

1. Delhi
2. Bengaluru
3. Greater Mumbai
4. Chennai
5. Hyderabad
6. Kolkata
7. Kochi
8. Pune
9. Jaipur
10. Ahmedabad

Here are some highlights of Affluent Indians:

• Six in ten affluent households are nuclear families.
• 25% affluent households have elders at home
• More than 50% of the households have more than one earning member
• 90% affluent individuals own a house
• 75% of them have a fully automated washing machine
• 40% affluent individuals have a home theatre and modular kitchen
• English is their preferred language for Newspaper
• Television is consumed more in regional languages
• 90% affluent individuals watch Television and nearly 75% read English Dailies
• More than 60% watch movies outside home
• More than 50% use Internet at home
• More than 60% individuals do not read magazines
• 30% affluent individuals visit a parlour or spa once a month.
• 80% of affluent individuals go out for meals frequently
• 90% shop at Modern Retail stores and Shopping Malls.

Interestingly the survey states that economic slowdown has not impacted the spending habits of affluent individuals.

What I found really interesting was that although English is the preferred newspaper consumption language, affluent Indians watch Tele more in their Local languages :)

When Cupid Strikes..

With Valentine 's Day just around the corner, the Indian retail is rolling in the spirit of festival along with the anticipating lovers.

Where the former is waiting to unravel the new collections, the lovers can’t wait to lay their hands on them. We took a walk down the festive street to know what ‘s in store(s) this season..

Moral police have taken a backseat during this time of the year as lovers are gearing up to express their love unabashedly and much to their parent’s chagrin. Retailers will certainly laugh all the way to banks like every year as sales will soar during this time.

Chocolates, cakes, cards, flowers, jewels, apparels, fine dine gets a sizeable chunk globally according to a report from national Federation(NRF). They further state that customers will spend around 17.02 billion this coming Valentine’s day in which India will hit 2000 crore approximately.

Matters of the heart: It is all about heart shaped gifts, be it cards, jewellery(pendants, bracelets, ear rings, rings), chocolates, cards, bouquets, cakes, pillows, etc. So, creative gifts replace traditional gifts during this time.

Window display and decoration: Retailers make best use of their window display as they feature meaningful, themed products: like heart shaped jewellery, pink and red dresses with hearts printed on them  while stuffed toys with red bow, cards, chocolates, rings, key chains  etc are kept near the cash counter for impulse buying.

Gender-wisdom: Men are big spenders as they would buy jewellery, soft toys, flowers, apparels, book hotels, holidays and fine dines. The male ego yearns to be appreciated on this day as their lovers feel guilty of how much they spend on them. Women spend mostly on men accessories like valets, premium pen, cuff links, belts, perfumes, shaving kits, shirts etc.

City wise distribution: A poll conducted last year showed that 70 per cent of young adults believed it to be day of expressing love.  Traditional Chennai is fuelling its passion of celebrating the day but in a tight fisted way; those between 21-25 were the most forthcoming while 16-20 years were just waking up to its realization. In Chennai, 55 per cent said they spent less than 500.

Delhi and Mumbai ( spend in four figures) were the leaders in celebration with Kolkata, Bangalore and Hyderabad in closer heels.

Target group:

• School children 12 years onwards in Metros that comprise a share of 17 per cent spend on cards, pendants, candles, chocolates, flowers, cakes, perfumes, low budget gifts like key rings, pens, teddy bears etc.
• Lovers in the age group of over 23 have the money power makes 32 per cent, spend on fine dine, discos, apparels, perfumes, jewellery, night out, holidays, wine etc.
• Also, to some extent BPO workers who start earning 18 onwards and have low savings make a share of around 28 percent spend on flowers, cakes, wine, clothes, small piece of jewellery, etc.
• Families that exchange gifts in keeping with the celebration comes to 23 per cent spend gift cakes, chocolates, fine dine, artifacts etc.

What’s hot during this time?

• Swarovski has come up with new range of mobile accessories, key rings and pendants in different shapes hues and colours.
• Archies: With an increased focus of gifting, Archies has signed with many global majors, like Russ Berrie, Inc. of USA, Keel Toys, Carte Blanche, Paper Island, History & Heraldry of UK, just to name a few.

   They have also tied up with Hallmark, which is good news. S o, one can expect some unique cards this season.

• HomeShop18 has a plethora of Valentine’s Day gifting solutions for everyone with 20 per cent value back on each purchase.

• Fashion and You and Deals and You have some irresistible options in gifts and dining.

• Body shop has new range of creams, perfumes, shaving cream etc.

• William Penn has introduced Prelude Mini-series for women and a pick of Dalvey accessories for men, the choices for gifts are aplenty.

• Ferns and Petals have flower bunches, baskets with options of chocolates, cakes etc.

• Open Oven has heart shaped cakes and special packaging which has chocolates and teddy bear.

• Suratdiamonds.com has heart shaped jewellery for every budget.

The above are just a few, 

we will come across more pleasant surprises with each passing day!

consumer zing matches New Year ring

North to South, consumer zing matches New Year ring:

For most of 2010, consumers battled with double-digit inflation, especially in food. As the curtains fall on the year, battle-weary consumers are in no mood to allow the prices of essential commodities to dominate their day. December 31 is supposed to be an occasion to celebrate, and most will do so, despite the pressures eating into their budgets.

Malls and organised retail stores across major metros and cities are choc-a-bloc with consumers doing their New Year’s shopping. Last year, the mood was a bit sober, as the economy had just begun to a turn a corner at this time. Sales growth last year was about 15-20 per cent. This year, the expectation from New Year sales is about 25-30 per cent.

The mood is decidedly upbeat,New Year’s shopping is catching on. Of course, most retailers are leaving no stone unturned. On an average, discounts on consumer durables and apparel — products that fly fast during the festive season — are at 25-30 per cent. For popular products such as LEDs and LCDs, discounts are even steeper, at close to 50 per cent.

Up the wave

But consumer durables’ retailers are not the only ones benefiting from buoyant consumer sentiment. Hotels and restaurants are also raking in. According to hospitality industry sources, grade-1 hotels and restaurants in Mumbai and other metros have achieved bookings of close to 80 per cent for New Year’s Eve. This will be full by the time the day arrives.

There are about 1,600 Grade-I hotels and restaurants in Greater Mumbai, where bookings have been done in advance. The rates vary for place to place. At our restaurant, for instance, bookings have been done for Rs 1,900 per head for vegetarian food and Rs 2,500 per head for non-vegetarian. This excludes drinks. In five-star hotels, the going rate is anywhere between Rs 5,000 and Rs 8,000 for a couple wanting to eat out for the night.

But if standalone bars, restaurants and hotels expect brisk business on New Year’s Eve, so do fast food joints, cafe chains and quick service restaurants.

hose wanting to celebrate at tourist destinations have to shell out at least 10-15 per cent more this year over last year, Goa tops among travel destinations this year during New Year’s.

Last year, it was Kerala which was the top destination during New Year’s. Himachal Pradesh is also a perennial favourite for people from the north.

The total cost for travel and stay at a three-star hotel in Goa, works out to about Rs 20,000 per person for four to five nights.

To Kerala, the cost is about Rs 15,000-16,000 per person, while Himachal Pradesh works out to about Rs 5,000-7,000 per person.

TRENDS: The Indian consumer, 10 years on

The Indian consumer, 10 years on...

Given the rapid changes in the country's demographic profile, marketers and advertisers say they would be addressing a whole new Indian consumer in the next decade..

*** Even as the majority of India will be young, there will still be a significantly large retired p

opulation and a very large middle-aged population.

What will the Indian consumer look like in 2020?

Based on a few reports (The FMCG Roadmap to 2020 by Booz & Co), some trend spotting by CEOs at the recent CII-FMCG summit and forecasts by experts, BrandLine pieces together the profile of the Indian consumer a decade from now. The 2020 consumer in the country will be:

• A younger Indian.

          *The average age of the Indian in 2020 will be 29

• A predominantly urban animal.

           *Even as marketers chase the rural markets today,the growing trend of large-scale 

             migration to the cities could mean changing ratios

• A multi-tasker SEEKING experiences.

           *the emerging new consumer will be a seeker of experiences: so the engagement would       

            have to be more visual, more interactive.Brands will need to focus on the experience.

• Not-so-price conscious, indulgent.

          *Several market surveys and studies have shown that the Indian consumer, even at the    

           BoP (bottom of the pyramid), is not so much cost-conscious as he is value-conscious.

          *By 2020 when per capita incomes are expected to double and India will be the eighth   

           largest economy, this will become even more pronounced. 

• More aware and educated.

         *As education levels rise (India will have more than 100 million graduates and    

           post-graduates), the Indian consumer will become more aware.

• A bit of a brand sceptic.

          *India is getting younger and the youth are typically not so sentimental about brands.     

           Second, the rise of private labels will give brands a run for their money. Hence, marketers 

           will need to work harder to gain brand salience.

• More health conscious.

         *even as their disease profile is forcing Indians to become more health conscious, the 

          Indian consumer wants a pain-free change.“The sweet spot for marketers is to give the 

          healthy option without foregoing the indulgences,” citing how consumers may switch to 

          healthier oils but will not give up oil.

• Convenience conscious.

         *With time at a premium and Indians getting busier, marketers will have to provide more ‘

          on the go' products. By the next decade, the Indian consumer will be demanding 

          convenience, not just of products but also of purchase.

          "how Kitchens of India, its ready-to-eat label, sells more online (on Amazon) than in retail stores."

• More individualistic.

         *The family structure will continue to evolve in the next decade — even as the joint family 

          disintegrates and nuclear units take firm shape, there could also be a rise in the single 

          person household.

         So, rather than address the family as a unit, marketers need to talk to individuals pointing 

         at how an increasing number of men are making FMCG purchases on their way from work.