entertainment in india

The Big B, Hindi cinema superstar Amitabh Bachchan, was missing at FICCI Frames, the annual meeting of the entertainment and media (E&M) industry held by the Federation of Indian Chambers of Commerce and Industry. So was information and broadcasting minister Priya Ranjan Dasmunshi, who was supposed to inaugurate the recent three-day event in Mumbai. In his absence, there were no policy pronouncements, something that had been eagerly awaited. But most participants shrugged it off, because the unstated theme this year was not change but three other "C" words: consolidation, corporatization and convergence.

Yet change has, in fact, been occurring. As filmmaker Yash Chopra, the Frames chairman, said at the inaugural session: "New technologies and ideas and young and brilliant filmmakers are here to take the [film] industry forward. A revolution has happened in the industry." Frames co-chairman Kunal Dasgupta, CEO of Multi Screen Media (formerly Sony Entertainment), was equally optimistic about television. "What is happening in the industry is that the professionals are becoming entrepreneurs and are setting up ventures in various fields like digital distribution and content creation," he said.

The report's title, "Sustaining Growth," is a message in itself. A breakdown by industry segment reveals that television, at $5.65 billion, grew 18% last year, compared with 21% in 2006 and 23% in 2005. Filmed entertainment -- both Hindi and regional cinema -- grew 14% to $2.4 billion, down from 24% growth in 2006. Print, at $3.7 billion, grew at 16%, compared with 17% in 2006. Only online advertising's growth rate increased, but at $67.5 million, it is just a small part of the larger picture.

PwC says the industry is getting its second wind before galloping again. It projects that the television industry will grow at 23% this year and 22% annually through 2012. The numbers for filmed entertainment are not as heartening: 15% growth this year and 13% through 2012. Print is marginally better off, with projections of 14% growth in both cases.

Private equity and foreign direct investment have been particularly active. Deals struck last year include a $56.6 million investment by Baytree Investments (Mauritius) and others in direct-to-home satellite television player Tata Sky; a $40.2 million infusion by Walt Disney Company in United Home Entertainment (which owns children's channel Hungama TV); and Reuters Singapore's investment of $21.9 million in Times Global Broadcasting, the television arm of the Times of India group. Meanwhile, the Abu Dhabi Investment House has announced $400 million in funding for an entertainment city in Navi Mumbai (New Bombay).

There have also been a number of new alliances. George Soros picked up a 3% stake in Anil Ambani's Reliance Entertainment last year. One of India's fastest-growing media conglomerates, Network18, snapped up Infomedia, a leader in business directories and B2B and B2C publications. And Temasek Holdings, Singapore's state-owned investment company, bought into television broadcaster INX Media.