Entertainment

Industry in
India
(film industry)
Team Members
• Aishwarya Yadav
•Abhishek SA
•Bala Murali Krishna
•Arpita Mohan Hegde
•Ambika RB
•Anusha RB
• Amaresh
• Anjali Mishra
• Karishma GH
• Chandana
Agenda
• Facts about film industry
• PESTEL Analysis of film industry
 Facts about movie industry
• largest producer of films and second oldest film industry in
the world
• Multi – lingual
• largest in the world in terms of ticket sales
• 3rd largest in terms of revenue
• Popular is Hindi film industry – Bollywood
• Filled with Music, action, drama, comedy, romance and
other special effects.
• produces more than 1000 films a year.
• Highest grossing movie is Dangal (US$311–340 million)
 PESTLE
• Political
• Economical
• Social
• Technological
• Legal
• Environmental
Political
• The CBFC (Central Board of Film Certification) is a film
statutory censorship and classification body under the
ministry of information and Broadcasting, Government
of india.
• According to the Cinematograph Act,(1952) – the films
are issued majorly 4 kinds of certificates (U, A , UA, S)
• Indian movies must pay both an Entertainment Tax and
Service Tax.
• Other than theses taxes, movies directly or indirectly
pay water, hoarding, advertisement and other value
added taxes that can add up to 55% - 60% of a movie’s
budget.
Economical
• At present, the film industry grosses a total revenue of Rs
13,800 crores ($2.1 billion), and it has grown at a CAGR
(compound annual growth rate) of over 10% in the last couple
of years.
• The industry employs 7.4 lakh people directly, and 23.6 lakh in
total (direct + indirect).
• The industry is growing at the rate of 11.2% per year.
• During the last decade, exports have grown from Rs.100
million ($2.18 million) to Rs.1.5 billion ($32.85 million).
Value of the film industry in India from 2007 to 2020 (in billion Indian rupees)
Social
• "Indian Cinema" is not a homogeneous entity as it has
quite disparate variations within itself.
• Indian cinema ≠ Bollywood
• Multi lingual
• less restriction on the age factor.
 Technological
• Technological factors include ecological and environmental aspects, such as
R&D activity, automation, technology incentives and the rate of technological
change.
• The cinema industry is shifting to align more with the consumers, as there are
new ways of accessing videos in the form of streaming and downloading.
Everything is digitalising.
• The industry adopted new ways and methods to project better quality films
with the use of:
Autonomous drones
Ultra HD 3D technology
Smartphone gear
Dual camera VR
Drone goggles
• Filmmaking equipment is getting shorter, powerful, and affordable due to the
latest technologies.
 Legal
Movie screening laws in India are :
• Freedom of press.
• Cinematograph Act, 1952 provides for provisions for the
certification of cinematograph films for exhibition and for
regulating exhibitions by means of cinematographs.
• Copyright Act, 1957 . The same Copyright Act allows
screening of movies for commercial use in India subject to
restrictions.
 Environmental
• Degree of Community Development
needs of urban and rural people are different in terms of their
lifestyle . And therefore the demand will be different.
• Business Environment
Indian entertainment industry is entering in collaborations
with many foreign new media companies, which outsource
their work to the Indian companies. Recently, Toonz
Entertainment floated a joint venture with First Serve
International LLC, a global media company which aims to
produce and distribute top-notch entertainment
programming for the world market.
 THREAT OF NEW ENTRANTS

• Threat of new entrants refers to the threat new competitors pose to existing
competitors in an industry.

• Profitability of the industry will attract more competitors looking to achieve

profits.

• It is easy for these for these new entrants to enter the market if entry barriers are
low.

• E.g.. New competitors entering the market place can either threaten or decrease
the market share and may result in changes to product quality or price levels.
• The threat of new entrants into any industry depends on the strength of the barriers
to entry, and the resulting response of existing competitors. The threat of new
entrants to the entertainment industry is relatively low. This industry is seen to have
established companies and conglomerates with significant presence in media
networks and filmmaking, thus creating a significant barrier to entry.

• The threat of new entrants is so low, in fact, that industry insiders are concerned that
new, independent producers are prevented from having their voices heard and
getting their new, innovative products into the market. The evolution of internet
distribution channels is making this less of a concern with its accessibility and
immense distribution opportunities.
The profitability of the individual companies rests on their diversification,
innovation, and ability to produce affordable products and services to consumers.
The profitability of the companies also relies on their individual capacity for
marketing, and competitive intelligence.

The global market with increasing middle class incomes is also increasing demand
internationally for many entertainment sectors. This coupled with brand loyalty
and innovation leaves the industry in a positive position looking forward. Based in
Yahoo Finance’s evaluation quarterly revenue growth is expected to be 9.40% for
the industry
 Buyer Power
• Buyers require customization

• Product is important to the customer

• Low Price sensitivity .

• other sources of entertainment available to the customers.

 Supplier power
• Pricing as per the demand.

• Strong market penetration.

• Offer customized service.

• Increased number of content writers.

 Threat of substitutes
• significant sporting events like world cups , IPL etc.

• Internet

• significant cultural events .

• Print Media
 Industry Rivalry
• strong competition from foreign entertainment Industry.

• large number of producers of the service in the market.

• cost of production is high .

• highly fragmented.
 Porter’s 6th Force : Complementors.
• Complementors, Porter’s sixth force, are companies or entities that sell or
offer goods or services that are compatible with, or complementary to, the
goods or services produced and sold in a given industry. Complementary
goods offer more value to the consumer together than apart. When
one product or service complements another there exists a condition
called complementarity; a sort of commercial symbiosis. Complementors
are often considered the sixth force of Porter’s industry analysis
framework. The presence of Porter’s complementors can influence the
competitive structure of an industry.
 Example
• 3D movies and 3D glasses.
Here 3D glasses act as complementors to the
customers who have come to watch the
movie.
Thank You