>INDIA ENTERTAINMENT INDUSTRY (KPMG)

Let the fun begin
Over the last few years, there have been discussions on the Indian entertainment industry being on the verge of take-off, powered by new delivery platforms and technological breakthroughs, increasing content variety and favourable regulatory initiatives. This is expected to transform the entertainment landscape, with more players entering and traditional players being forced to adapt or perish. One can already witness changes that have the potential to alter the industry structure.

New delivery platforms and technological breakthroughs: Increasing penetration of new delivery platforms is one of the key drivers of the media and entertainment industry today, that has the potential to change the way people receive content. These platforms, resulting from fundamental technological breakthroughs, are likely to see most of the action in next few years. For example, the spread of inexpensive and stable storage media will also enable people to store content and view it at their convenience. Some other examples are:

• Introduction of DTH and IP-TV
• Digital distribution of films
• Immersive content media like IMAX theatres
• Coming of age of Satellite Radio and FM Radio
• Emergence of new technologies like podcasting, etc

Together, these are expected to change the viewing habits of people.

New forms of content will emerge to cater to select viewers, as the industry evolves. Content like community radio and local television, that were unviable earlier, will also emerge stronger through new delivery formats. Moreover, content innovation will be necessary to sustain the interest of the increasingly jaded urban population. A few instances of rising content diversity are:

• Newer programming categories like reality television,
• Crossover content in music and films,
• Niche programming on radio like sports and comedy,
• Newer genres like lifestyle television, religion channels, etc.

Increasing content variety: Regulatory initiatives: The regulatory framework for media is still evolving. Looking at the policies announced by TRAI, it seems that a liberal framework is likely to be developed in order to allow the industry to flourish. Alongside regulating broadcasting and distribution, it will be important to create stronger protection mechanisms for copyrights and royalties. If intellectual property is protected to a fair extent, the industry could capture far greater value, giving its growth rate a significant boost.

To read the full report: ENTERTAINMENT SECTOR