Globalisation of Entertainment Industry in India

Introduction

India’s entertainment economy is growing rapidly, and the world is taking note. The country is among the world’s youngest nations, with more than half a billion people under the age of 25. With favorable demographics and a rise in disposable incomes, the propensity to spend on leisure and entertainment is growing faster than the economy itself.

Enticed by economic liberalization and the huge volume of demand for leisure and entertainment, many of the global media giants are starting to set shop in this country, once known as a land of snake charmers. In recent years, the Indian entertainment and media (E&M) industry has out-performed the Indian economy and companies from all over the globe are increasingly envisioning their growth linked to emerging and developing giants like India, which is why they are now focused on growing and branding their businesses in this market. The E&M industry-The major segments

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The media and entertainment industry consists of many different segments under its folds such as television, print, and films. It also includes smaller segments like radio, music, OOH(Out of Home Media is an advertising medium which reaches out to the 'difficult-to-reach' and SEC A consumers wherever they are, thus offering the advertiser an all day primetime. ), animation, gaming and visual effects (VFX) and Internet advertising. Entertainment Industry in India has registered an explosive growth in last two decades making it one of the fastest growing industries in India.

From a single state owned channel, Doordarshan in the 1990s to more than 400 active channels,the E&M industry is galloping, even through tough times when others are facing recession.

Size of industry

The domestic entertainment industry was estimated at nearly Rs 225. 0 billion and provided employment opportunities for nearly 6. 0 million people in the year 1999. In terms of foreign exchange earnings, the industry contributed around Rs 4,000. 0 million in the year 1999. In the year 2008, the E&M Industry stood at INR 584 billion, a growth of almost 12. %,every subsequent year. Over the next few years, this industry is projected to grow at a CAGR of 12. 5% & reach the size of INR 1152 billion by 2017.

Propellers of growth

The major Factors The growth in this sector of the Indian economy has been propelled by a number of factors such as :

1. the corporatization of the film industry,
2. a booming television sector,
3. a fast-growing radio sector,
4. an expanding market for print products and other technological changes such as the advent of digital technology.

Some of the significant changes include the emergence of new niche content genres such as reality television; the India Premier League (IPL), with cricket emerging as a mainstream entertainment genre; internationalization of Indian media and an increased production of content for global audience, launch of TV channels such as NDTV Arabia and NDTV Malaysia, launch of German edition of Filmfare magazine in 2008 and co-production and production of Hollywood movies by Indian players; and a substantial increase in Foreign Direct Investment into the Indian media sector.

With $88 million of FDI flowing into the media sector in the last three years, increased density of alternative delivery platforms and digitization are collectively changing consumption patterns in the entertainment industry across India. Media sectors,regarded as “sunset” sectors in mature markets,are flourishing in India. For example,the newspaper industry,which is rapidly declining in other developed countries, is flourishing in India, on account of increasing literacy levels, consumer spending and the growth of regional markets and specialty newspapers. Newspapers account for 42% of all advertising spend in India, the most of any medium.

Indian television industry

Television is one of the major segments of the Indian entertainment industry and has thousands of programs in all the states of India. India is the third largest television market in the world. The small screen has produced numerous celebrities of their own kind with some even attaining national fame. TV soaps are extremely popular with housewives as well as working women. The increasing popularity in the satellite cable television segment has been a major cause for the high growth in this industry.

The cable subscriber base has increased from around 0. 05 million in the early 90s’ to around 24. 0 million in the year 1999-2000 is further estimated to increase to nearly 120. 0 million by the end of 2013. With the rapid proliferation of channels (over 75) and the privatization of DD, growth in this segment is projected to be rather high.

Indian Film Industry

"You are not a true Indian if u don't follow cricket or bollywood" This is the impact the film industry has had on the minds of Indian people. Indians love to watch movies.

With the advent of improved technologies in all aspects from film production (Rise of 3D cinema, Advent of digital cinema and the growth of multiplexes)to marketing(wanna see a movie and all stores are closed?? buy it on the google playstore,or watch it online!! ),the increased corporatisation of industry(Collaboration with international studios: International film studios such as Warner Bros. , Disney, Fox and Dreamworks etc) and Resurgence of regional cinema, the Indian Film Industry has become the biggest contributor in the growth of the E&M indusry.

Going Gaga-the boom in the radio industry

One of the major drivers that have helped the media industry in India canter along at a blistering pace has been the good old radio. AM, FM and even Satellite Radio have made a huge impact on the Industry in India. The stage is set for major revenue growth among the various Radio Channels. In fact what we are seeing is not some newfound love for the old medium but just the natural uncoiling of the market after the liberalisation and privatisation of the industry Everything is new and nice at the moment. People in India today are spoilt for choice. Be it any media platform they have a stack of channels to choose from.

In fact listening to FM Radio in India is very weird, as it seems too “clean” without the usual news on the hour. Talking about weird of all the things Satellite Radio is here. WORLDSPACE has got around 65000 subscribers in India. That’s two thirds of its entire audience around the world. People like it because it is clean without commercials. In most developed markets though where broadband penetration is high people have access to thousands of radio channels via the Internet. Satellite radio hence does not generally do well there. The other limitations of satellite radio are the unavailability of portable devices in the country.

The music industry

The Indian entertainment industry is incomplete without the inclusion of music. Music,since the 90s has become the integral part of the Indian cinema. you will have to search hard to find an indian movie that doesn't incorporate a song. its not just the mentality of producers, it’s the public demand that drives the producers to include songs, whether its justified or not. Over the years, the importance of music has only increased, especially in case of the movie industry. Of late, movies have gone on to become huge successes largely on the backdrop of good music.

While the popularity of film music increased, it also resulted in the growth of other segments such as remix, Indi-pop etc. Distributors Despite major changes occurring in the industry, most of the audience is still dependent on distribution network . Since timing is a very crucial factor here, only the companies with wider reach are able to thrive and generate profits. As distribution companies retain a major part of the profits generated in this industry, majority of them have diversified into setting up of their own retail stores. HMV is a pioneer in this area and has an excellent chain of stores at its disposal.

This strategy has helped the companies to gauge the consumers’ changing perceptions and revamp their product offerings to meet the popular demand. Exchange of talent Globalisation has helped the music production companies to share the international pool of talent. The rate of usage of international talent increased tremendously after the 1990’s. Later, many artists’ internationally renowned artists have featured in Indian songs and vice versa. A. R. Rahman composed and produced music for the film Slumdog Millionaire and Resul Pookutty mixed the sound for the same film. Such examples display not only the impact of global companies on the indian industries, but that of Indians on the global stage.

Hindi film industry Current Situation:

The Hindi film Industry popularly known as “Bollywood” is the main contributor to the Indian film industry after regional language film industries like Bengali, Tamil, Telegu and Marathi. The Indian film industry is projected to grow at a CAGR of 10. 1 per cent to touch INR 150 Billion in 2016. The industry was estimated to be INR 93 billion in 2011 indicating a growth of 11. 5 per cent as compared to 2010.

Although the country’s filmed entertainment industry is the largest in the world in terms of the number of films it produces (about 900) and its theatrical admissions (around 3 billion), it continues to be small in size in terms of revenue, mainly due to low ticket realization and occupancy levels. Moreover, lack of quality content and rising competition from Hollywood films continue to affect it. Source:-The Indian Bollywood Industry, DIBD-OMI, May 2012. However, one cannot underestimate the changes that have taken place in the Indian cinema due the fast globalizing or westernizing world.

After Indian economy opened its gates for the rest of the world, a lot investment in terms of technology and funds have entered into the industry. Although 22 years since 1991 might seem a small time frame in the film industry, but it remains quite significant in terms of the progresses made. With more awareness, Bollywood has realized that it is necessary to create an ambience in the movies, so the movies target both the Indian culture as well as a more international culture overseas. Hence over the last 10 years Bollywood has become more international and has begun targeting a more global audience than before.

Films like K3G, Kal ho na ho, My Name is Khan, Salaam Namaste, and recently Cocktail, have been a success in the overseas market mainly because of their portrayal of Indians living abroad. Bollywood films are not only watched by people in India, but also neighbouring countries like Pakistan, Bangladesh, Nepal, Pakistan, Sri Lanka watch the movies. Moreover, countries with large groups of Hindi and Urdu speaking population like Australia, UK, Africa and the US have many Bollywood fans. And countries like Russia and Japan are also buyers of Bollywood productions.

Now, with the ever transforming world and tastes of the the viewers, the Indian film industry is trying its level best to match up to the needs. Some of the changes seen in the recent times are which can be attributed to globalisation are:

The emergence of a new source of income.

Although revenues from the theatre segment constitute around 60% of the overall revenue for a movie, other revenue streams have begun to make a meaningful contribution. The trend of selling satellite and home-video rights prior to release gained momentum in 2010 and has enabled producers to involve lesser risks in their business models. Most of the revenues of the films are now earned within the first week itself which gives the film producers a chance to sell TV rights and air the movies earlier than before. A lot of films are now premiered very soon after they are being released and the satellite rights are sold well before the movies are released . Due to this, piracy is not that big an issue that it was a few years ago. Owing to these strategies, 2012 proved to be a good year for Bollywood with 6 movies crossing the 100 crore mark. Source-KPMG

Digitalization of screens and increase in the number of screens.

To fight ne of the threats of piracy which was one way or the other because of other sources of information like internet, the film industry now a days do not send their physical prints at the theatres, rather they are relayed through satellite technologies like UFO. This has increased the no. of screens in which the movie runs many folds. Consider the case of Salman Khan’s first movie Maine Pyar Kiya which released across 500 screens in India and compare it with Ek tha tiger which opened to a record 3300 screens. The growth of multiplexes has improved the movie-going experience for Indian audiences and has led to increase per-ticket realization. Rising urbanization and growing disposable incomes are also driving increased investments in multiplexes. In addition, theatres with low seating capacities allow cost-effective screening of movies that are targeted at niche audiences. However, there is still further ground to be covered. The average number of screens per million in India is presently12, as compared to the global average of 54 screens per million. The number of multiplex screens in India is expected to increase from 1,000 in 2010 to 1,405 by 2013.

Foreign Investment.

With the liberalisation of indian economy in the 90s, we have seen that international film studios like Warner Bros. Disney, Fox and DreamWorks have entered into collaborations with local film production houses to develop Hindi and regional movies. “Saawariya”, in 2007 was the first Hollywood produced Bollywood movie in India. “My Name is Khan”, produced by Fox Star Studios was a huge success both in India and abroad. Walt Disney, who earlier held a 50% stake in UTV, has now acquired a controlling stake in UTV Software Communications.

Viacom18 has also entered a deal with the global movie company Paramount Pictures to market and distribute the latter’s movies in India, Bangladesh and Sri Lanka. It has already ventured into the production of Hindi-language movies, and the new deal is expected to help create a distribution network. Local film production can benefit from the experience of these international studios to expand their international reach and incorporate enhanced project planning and cost controls. In the process to make India a filming destination, the Ministry of Information and Broadcasting is looking for setting up a Film Commission that will initially act as a single-window clearance agency to issue permits for shooting. At present, international producers need to seek many approvals. While they require script approvals from the ministries like I&B Ministry and the Ministry of External Affairs, cast and crew approvals are required from the Ministry of Home Affairs. Based on the kind of shots and location, they need approvals from Customs Department, the Archaeological Survey of India besides several other local and State authorities.

Shooting in foreign locations

A boost for tourism In the recent past, many films have been extensively shot in foreign locations: Movie Country Zindagi Na Milegi Dobara Spain Rockstar Czech Republic RA. OneUnited Kingdom Don 2 Germany Ek Main Aur Ek Tu United States of America Worldwide, countries offer various incentives to encourage film producers to use their locations to shoot films.

Incentives are offered in the following forms:

• Cash rebates – where a certain percentage of expenditure in a country is provided as rebate to the film producers
• Tax credits - where a percentage of expenditure in a country is allowed as credit against the income.
• Exemption from or refund of VAT and Customs duty.
• Interest-free loans
• Soft funding – negotiated tourism benefits, such as easier processing of visas, and discounts on accommodation and travel.

Benefits of film incentives regime:

• Boost to the tourism industry: Films shot in foreign locations depict diversity, history and landscapes of a country which help in increasing tourism in a country.

Benefits to the economy:

• The inflow of foreign exchange.
• Boost to local film production: For example, the success of Slumdog Millionaire, which was shot in India and was a collaboration between Hollywood and Indian film technicians, helped the Indian film production houses secure more business.
• Technological exchange

Creation of employment opportunities:

• The hiring of local technicians.

Cultural Exchange Some Facts:

• The flow of Indian tourists to Australia increased by 20% from 2004–2006, especially after the success of Salaam Namaste.
• The production of Heyy Babyy injected around US$2. 1 million into the state’s economy where it was shot.
• Switzerland hosts around 150,000 tourists from India and large number of Bollywood movies are shot in the country every year.
• Many US states such as California, New York, Michigan,Nevada and Utah offer incentives to film and television production companies from India.

Many Bollywood movies have been shot in the US including My Name is Khan, Kabhi alvida na kehna, Kal ho na ho, to name a few.

Emerging 3D cinema and Advanced VFX:

3D is a prominent theme these days and has demonstrated its significant potential with benefits such as increased audience engagement, increased ticket prices and the exclusivity of the medium, i. e, the theaters. The success of Avatar has taken 3D movie-making to new heights. Multiplexes could look at the feasibility of investing larger amounts in 3D screens to meet the growing demand to view 3D.

There is an emerging market for 3D movies in India with movies like Any Body Can Dance, Dangerous Ishqq, Ra. One and Haunted-3D. A new window of opportunity could open up if Bollywood is able to produce high-quality 3D content. The visual effects (VFX) industry is a rapidly growing segment in India. It includes the creation of live-action imagery by using computer-generated effects. It is increasingly being used by the visual media in India and can be classified into the following verticals — movies, TV shows and advertisements.

The segment is still at its nascent stage with mainly low-end work being done in India. Domestic consumption is small, and therefore, the bulk of the work includes outsourced projects from the US and the UK. However, the domestic market is seeing bigger budget movies and ad campaigns, which are now open to spend more on VFX to provide an enhanced visual experience to viewers. There has been significantly high growth in the number of VFX companies operating in India. According to some estimates, there are more than 40 major domestic VFX companies catering to the needs of domestic and international clients.

Currently, India accounts for only around 10% of the total animation and VFX outsourcing pie. However, there is scope for growth and the amount of work coming to India from Hollywood is on the rise. In late 2011, VenSat Tech Services, a VFX company, joined hands with Reliance MediaWorks Limited to set up a VFX, computer graphics and animation team.

New Market Techniques.

With more Hollywood movies getting released in India, Indian movies are adopting newer marketing techniques like selling merchandises, video games, toys etc. The Indian film Ra.

One was a first-of-its-kind campaign with a complete 360-degree approach. Films like Harry Potter, Shrek, Superman, and Batman have been successfully using this approach for their campaigns.

Effects of globalization on Indian music

Effect on Bollywood

One distinguishing feature of Indian films has always been its music. While the musical lost its dominance as a genre in Hollywood in the early 1960s, largely due to the advent of rock music, Indian music scenario saw no such change. With the advent of “talkies”, Indian films started incorporating songs as an important element of the narrative.

The sets and costumes, action scenes, presentation of stars, grandiloquent dialogues, and song and dance sequences became the main attraction in a movie for the fans. Song sequences are used for several purposes in films. Sometimes a song is a narrative part of the film; other times it is used as a dream sequence, or the lovers’ fantasy. Sometimes they function to allow an expression of feeling that cannot be articulated otherwise—notably the declaration of love. When music channels like MTV and V on cable and FM radio started roadcasting in India, the Hindi film music gained even more popularity. Music is important economically since the sale of music rights may recover a good part of the budget of the film. Recently, the film industry has been pre-releasing soundtracks for films along with music videos(which are basically clips of the songs from the film) some months in advance. This heightens pre-release interest among audiences and act as advertisements of the film. The latest trend that has been started is that of “Item Numbers”.

The overt hypersexualization of the song-dance sequence is a kind of “MTVization” of Hindi film music; the song is packaged as a 5-minute video which can advertise the film and be sold as an independent commodity. A musical industry old timer has said “Whereas in older song-and-dance sequence the erotic had an element of coy and the tentative, today the erotic has in it elements of rank sexuality, brutish pride, and vulgarity. Naked feet adorned by anklets have been replaced with high leather boots and the pelvic thrusts display the hunger of a newly-unleashed sexuality.

As in other spheres, in the theatre of sexuality, the Indian adventure with globalization is on display” Item numbers have become an economic necessity for film producers, singers, and music directors who want to market themselves to a global audience, to globalize the appeal of Hindi film music, and to attract younger, upwardly mobile, city-based audiences. The song-dance sequences have taken on an “international” look, using a multicultural dance cast and hip hop-influenced clothing. Such tastes and representations are far too alien to the rural and lower middle-class audiences.

Effect on Indian Classical Music

Indian culture has been attached with music since long time, with traditional Indian music being the most famous among Indians till the time globalization hit the country. Western culture followers are increasing in India due to adoptive nature of Indian consumers. Though the number of youth listening to traditional Indian music may have declined globalization has acted as a two-way street in its truest sense. Indian classical musical instruments like veena, sitar and table have been incorporated heavily into the “World Music” genre which focuses on fusion and bringing out the spiritual side of music.

Artists like Pandit Ravi Shankar, Pandit Amjad Ali Khan, Bismillah Khan and Zakir Hussain are renowned and respected globally. The situation surrounding the traditional classical music of India continues to change due to the remarkable advances made in methods of information dissemination and communication, among these the rapid growth of the Internet. Some critics say that the commercialization of Indian music seems to have led to the monopolization of the market by a small numbers of "stars. Over the last ten years, it has in large part been the same small group of musicians who have been performing concerts in major cities. The popularization of Indian music has led too to changes in performance styles and audiences appreciation. This includes, for example, shortened performances, the traditional raga time concept as meaningless, and an overemphasis on technique. Serious practitioners and students of Indian music, in particular Hindustani music, have increased dramatically throughout the world. This is evident from the increasing number of Indian musicians traveling abroad to perform and record.

In some Western educational institutions, Hindustani music has already been established as a formal area of study, and research is being done to determine the most effective methods of education in this discipline. In light of this trend, the traditional master/pupil method, Guru-Shishya-Parampara, has proved to be something of a controversial problem.

Effect on Musical Instruments

Increasing globalization; increasing use of internet have resulted in changing the taste of music lovers; ultimately influencing their musical instrument choices.

Gradually, the appetite for playing western music instrument has been fulfilled with the increase in number of western music schools. India's western musical instruments market has been anticipated to reach INR 542. 84 Crore by 2017.

Television and globalization overview

Media imperialism is a subcategory of the broader category of media imperialism. The conventional view was that it was the global (particularly US) media that dominated and the technologies associated with it that were imperialistic and ruled the world. But the scenario was changing on the advent of 1990s due to nationalised media arising and getting promoted. Al-Jazeera was founded in 1996 and is a Qatar-based company. Bollywood is seen as an answer to Hollywood. Reuters is a major news company founded in Britain. Times of India is the world’s 3rd largest circulating paper. ” These are some examples to name a few of the changing global media trend. Since the advent of television in the 1920s it has been a source of news and entertainment. Majority of the channels were state funded and had little commercial use. After the arrival of globalization television was changed, as the viewers were seen as a mode of income from advertisements and this began a war of TV ratings among the channel providers began.

They turned the political struggle for television into a battle for market shares with an increasing international orientation. The liberalisation of television in association with the development of new broadcasting technologies led to a multitude of competing TV stations and to a diversity of available programmes. Private broadcasters’ dependence on funding by adverts caused a commercialisation of TV and shifted the focus of programming to ratings, which have become an all-dominant factor. The constant search for new ways of attracting viewers’ attention favours sensational topics and results in a variety of new programme formats.

India was one of the most affected countries due to this trend. Ramayana and Mahabharata were the first major TV series in India. The 1980s saw the arrival of popular shows like Hum Paanch, Bharat ek khoj which made the viewers engrossed in them.

Entry of foreign players

In 1991 the government allowed private and foreign broadcasters to engage in limited operations in India. This was the first step of globalization of the Indian TV industry as this led to the entry of major foreign players such as CNN, STAR TV, and domestic private enterprises such as ETV, ZEE.

In 1999–2003, other international channels such as Nickelodeon, Cartoon Network, VH1, Disney, and Toon Disney entered the market. Starting in 2003, there has been an explosion of news channels in various languages; the most notable among them are NDTV, CNN IBN and Aaj Tak. The most recent channels/networks in the Indian broadcasting industry include UTV Movies, UTV Bindass, Zoom, Colours, 9X and 9XM.

Case study- star tv star tv

Is a US-based company owned by Rupert Murdoch’s News Corp? It currently has 35 channels in 7 languages with around 400 million viewers in India. They currently own one of the most viewed channels of India such as Star Plus, Star Gold, Star Movies, Star world, Channel [V] to name a few. It is the leading TV channel in terms of no. of channels and viewers in India with hit shows such as Kyunki Saas Bhi Kabhi Bahu Thi, Star Voice of India and 24X7 movies.

Rating wars

Entertainment channels form the largest part of the Indian TV industry with foreign and domestic players. They broadcast daily shows which are mainly targeted to the family audience, particularly ladies called “Soap Operas”.

This is a huge source of revenue and entertainment as most of the advertisements are shown in this time slot making this a win-win situation for everybody. These not only include popular Hindi shows such as Kyunki Saas Bhi Kabhi Bahu Thi or Kahaani Ghar Ghar Ki but also in other languages such as Punjabi, Marathi and English such as Ugly Betty, 90210, Damini. The popularity of these serials is evident from the data shown above. Source: TAM peopleter system, GEC Ratings (April 22-28) One of the major sources of entertainment is the sports channels which are dedicated to the world of sports.

There are 20 sports channels till date with the majority owned by the foreign powerhouses such as ESPNSTAR (owned by FOX network), SONY SIX. Children's interest channels are television specialty channels that present children's interest content. This market is almost entirely owned by foreign companies such as Cartoon Network, Nickelodeon. The NEWS channels are the ones that have most of the domestic companies and have one of the fiercest rivalries among them. Other channels include dedicated to music, movies, sci-fi, and general info. The majority of them are owned by foreign TNCs such as MTV, Discovery, and HBO.

All of these are owned by foreign media conglomerates and are one of the most viewed channels in India. All of these are owned by foreign media conglomerates and are one of the most viewed channels in India.

Foreign content and storylines

The content of the channels is also influenced by global trends. In most of the cases either the storyline or the format of successful foreign shows are copied. Some of the examples are shown below:

• Jassi jaisi koi nahi – Ugly Betty
• Big boss – Big brother
• Indian idol – American idol
• India’s got talent – America got talent Fear factor - Fear factor
• Masterchef India – Masterchef Australia

The viewership of English sitcoms is on the rise in the young generation such as Friends, and HIMYM due to the rising English-speaking population which has increased the revenues of these channels such as STAR World, and AXN. On the rise is the viewership of movies in both Hindi and English as evident from the exorbitant prices channels are paying for the television premiers of the movies. The sports TV industry is one of the fastest growing industries due to its huge fan following also known as “popular culture”.

The increase of number of sports channel in India is rapid. Cricket and football has proved itself as a huge source of revenue generation as perceived from the data below. IPL, world cup, BPL are huge attractions for advertisers and they are willing to invest in them. And majority of them are the TNCs who spare the big bucks.

Challenges faced by the industry

But the television industry faces many challenges due to globalization.

• The main disadvantage is the accumulation of power in few foreign media conglomerates which hinders the growth of domestic market. Few Indian companies have been able to establish themselves in front of global power.
• The media sometimes become biased and influence public opinion. For example, in Saddam Hussein's case media houses passionately supported the US in their operation and thus took people on US side without telling the full story.
• Also, the advent of reality TV shows has increased their share which results in disproportionate. Time should be divided suitably for all types of entertainment which is not so in the present scenario.
• TV has not yet been able to penetrate the rural parts of India due to a lack of connectivity which is needed as it acts as a source of information.
• Also in this century internet viewers are migrating to web services. This has resulted in the formation of web portals of channels which is not encouraging for the TV industry.

Bibliography

1. http://www. indiantelevision. com.
2. http://www. startv. com. n. d. www. tamindia. com.
3. Film Industry In India: New Horizons. Ernst ; Young Pvt Ltd. , 2011.
4. Google Images. n. d. http://images. google. co. in/. HT City. "Foreigners First, But What about us? " April 14, 2013. Indian Express. "IPL 6. " April 8, 2013.
5. Research and Markets-Market research reports. n. d. http://researchandmarkets. com. Ritzer, George. "Globalization a basic text. " n. d. Vogg, Ejvind. The Indian Bollywood Industry. DIBD, 2012.
6. Wikipedia, The Free Encyclopedia. n. d. http://wikipedia. org.

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