India's film industry generated an estimated US$2.73 billion (Dh10.02bn) last year. Below is a guide to the key entertainment and media sectors.
Films
The industry remains dependent on domestic movies, which generate 70 to 80 per cent of Indian film revenue. More than 1,000 films are produced annually in more than 20 languages. In 2008, 3.3 billion tickets were sold for films screened in 10,000 cinemas. There are more than 800 multiplex screens in India, and this is estimated to grow to 1,500 in the next two to three years. In 2000, the Indian government granted industry status to the film industry and permitted foreign direct investment and ownership of up to 100 per cent in film-related entities. Various state governments have also provided entertainment tax exemptions for multiplex operators.
Television
Last year, the industry generated an estimated $5.68bn of revenue. India has 134 million households with television sets, of which 90 million are served by cable and satellite TV. As many as 500 TV channels were operating last year. The adoption of digital distribution platforms - direct-to-home and digital cable - is helping TV distribution become more organised. From about 2 million digital TV households in 2006, the platform currently caters to about 15 million to 17 million digital subscribers. Up to 100 per cent foreign direct investment and ownership of TV channels is permitted.
Radio
Last year, the industry was estimated to be worth $201m. The government-controlled All India Radio and 37 private FM radio companies that operate nearly 280 FM radio stations in India cater to this segment. After the opening up of FM radio broadcasting to private players in March 2000, the roll-out of the second phase of the FM radio licensing policy in 2005 provided a boost for the sector. In radio companies, foreign direct investment is limited to 20 per cent of a company's paid-up equity capital.
Music
The music industry generated revenue of $369m last year. Distribution via digital formats on the internet and through mobile phones is the emerging business model for music companies.
The industry is projected to grow at a compounded annual rate of 28.6 per cent up to 2014, reaching $567.6m. The key growth driver for the music industry over the next five years will be digital music. Its share of the music market is expected to move from 29 per cent last year to 75 per cent in 2014.
* source: Ernst & Young, PricewaterhouseCoopers
