Spends 2.

5 hours
per day watching
online media

The Indian Media & Entertainment landscape

Contents

1 M&E sectoral overview

2 TV industry landscape

3 Indian Film industry overview

4 Print Media landscape in India

5 Music industry in India

6 Sports industry overview

7 Gaming industry landscape

2
M&E sectoral overview

3
 M&E sector – An overview
Indian M&E sector to touch INR 2 trillion by 2020
CAGR (2017-20)
Segment wise break up of M&E Sector
INR bn
CAGR 11.3% 2033
9.8%
1658 17%
1473 TV
16% 9%
16%
7%
8% 10%
6.8%
11%
9% 20%
21% Print
23%

45%
44% 7.2%
45%
Films
CY2017 CY2018E CY2020E

Television Print Films Digital Media Others 23.5%

Digital Media

KEY HIGHLIGHTS
• By 2020, TV still to be the biggest; digital media to grow the fastest

• Global audience adoption to drive faster growth in films, could see increase in high budget films

• Print media – Subscription revenues led to growth so far, now growth to be seen in advertising segment as well

• VFX, gaming and live events could see traction; India to be an outsourcing hub for VFX segment

4
Source: FICCI Frames, Re-imagining India’s M&E sector, March 2018
 Digital media : Setting the context
Globally, consumption is moving to mobiles, India has large mobile-only
users with factors pointing towards increasing consumption
India is leading the way – consumption on mobile over desktop

Mobile Unique Visitors as % of Desktop Unique Visitors

Markets which have a mobile audience larger than its desktop audience – truly
‘mobile first’ Markets where the mobile audience is equal to or
smaller than the desktop audience

397%

249%

134% 132% 127% 116% 114% 106% 100% 90% 90% 81% 68% 48%

India Indonesia China Mexico Spain Brazil Italy Malaysia UK USA Argentina Canada Germany France

In India, the ecosystem is favorable towards higher video and audio consumption over the 3-5 years

Rise in online video audience (in mn) Rise in online audio audience (in mn) GB consumed/ smartphone/month

500 94.2
87.6
18
250

3.9

2017 2020E 2017 2022 2017 2023E

5
Source: comScore MMX Multi-Platform, Dec 2017
Digital media consumption by platform
Indians are spending over 150 minutes a day on mobile apps – majorly on
social media and entertainment

Segment wise time spent for an Indian user

Social Media & 4

Instant messaging
5%
Entertainment 28%

Others 48% 95%

Games 20%

Others
FB, Whatsapp, Instagram

Platform

# Active Users 270 mn 200 mn 224 mn 59 mn

6
Source: comScore MMX Multi-Platform, Dec 2017, Statista, Financial Times, Quartz Media
This Story as being played out in India
Globally and in India, convergence is the new disruptor –Players in
previously “defined silos” are now competing across the value chain

Indian Market

Creation of content (TV Compilation of content Platform/channel to Media used to transmit Devices and screens used
and film production from multiple producers distribute content content (cable, telco, by consumers to consume
houses) (networks, affiliates) satellite) content

Content Producers

Aggregators

“YouTube
Distributors Originals”

Vodafone
Service Providers Play
Wynk TV

iTunes Apple TV
Device Manufacturers Google Play Chromecast

7
Market wise opportunity
With rise in OTT consumption, many players are trying to capture the
market through unique content offering

OTT Player Content buckets Languages Revenue model Comments

Advertising + Only OTT player to offer sports in regional

hotstar languages
Subscription

Netflix Subscription Larger content library in English

YouTube Advertising + PPV High amount of user generated content

Amazon Prime Subscription Investing into regional content – Bengali

Very few original shows and working on

Voot Advertising
shows in Telugu and Malayalam

Sony Liv Advertising +

Starting Marathi web series
Subscription

Advertising and for Jio

Jio Play Aggregator of all Indian TV channels
subscribers

Content sharing agreement with Dharma

Spuul Subscription
productions

Other players include Airtel, Vodafone, Eros Now, ALT Balaji, Viu, ZEE5, dittoTV, Sun NXT, TVF Play, hungama

TV shows, movies, news and sports TV shows and movies English Hindi and various regional languages

TV shows, movies and news

8
Factors contributing to rise in digital consumption

Reduced by ~96% from Sept.

to Dec 2016

Reduced data
charges

Expected to grow by Expected to grow by

~52% by 2021
Internet Rising disposable
~55% by 2020
penetration income

Growth drivers

Language Increasing language and

Increase in
176 mn. new smartphone enablement content support to
smartphone users
users in next 5 years ecosystem enable larger user base

Improving digital
literacy

Increasing digital literacy to enhance adoption

9
TV industry landscape
Overview

10
TV Industry
With 64% TV penetration India still has headroom for growth; hence
expected to grow at 9.3% to be worth INR 862 bn by 2020

Indian TV Industry – Market size (INR bn)

• TV industry to grow at 9.3%
CAGR 9.3% 862
CAGR 12.2% 734 • Factors favoring
660

57% • Room for higher TV penetration

417 59%
60% • Digitization that would bring higher
33% ARPUs
43%
67% 40% 41% • There are over 300 pay channels, 577
FTA channels, producing content in
2013 2017 2018E 2020E more than 15 languages
Subscription Advertising

Increased TV penetration and digitization to help realize further benefits in the industry

2004 2008 2013 2017

Analogue Digital

2005 50% 50%

40% 46% 54% 64% 2010 36% 64%

2013 6% 94%

83mn 106mn 143mn 183mn

2017 2% 98%
% denotes - TV availability % in households

11
Source: FICCI Frames, Re-imagining India’s M&E sector, March 2018; FICCI Frames, India’s M&E sector, 2014, FICCI Frames 2018, BARC Report
TV Industry
The industry is undergoing rapid shifts with every player trying to have a
direct line of sight with the end user

Content Producers Broadcasters Distribution Consumers

Production houses
DTH Operators

Movie Studios
MSOs and LCOs
875 channels in India,
reaching 183 million
households and 780
million individuals
Sports rights holders HITS

End Users –
Content
consumers
Broadcasters IPTV

New Entrants – OTT Platforms (E.g.: Netflix, hotstar…) WWW.

12
TV Industry
Top networks dominate eyeballs share; GEC, the most popular; Viewership
highest among the youth
3% 1%
6%
What is watched
on the networks GEC
6%
Top 10 networks contribute to 80% Movies
viewership 7%
News

Music
54%
Kids

Sports
23%
Others
Top 5 networks
Next 5 networks

Others
Viewership across ages (million impressions)

9623

5786
4880 4624
4279
Who is watching
these networks

2-14 years 15-30 years 31-40 years 41-50 years 51+ years

13
Source: FICCI Frames, Re-imagining India’s M&E sector, March 2018
TV Industry
Regional genre driving both revenue and viewership

Smaller regional markets growing at much faster pace

TV Revenue - Genre wise contribution in 2017

% change in viewership
(2017 over 2016)
9%
Total 32%
3%
Gujarati 146%
3%
27%
Assamese 123% Hindi GEC + FTA
5%
Regional Satellite
Marathi 74%
News
Bangla 68% 5% Sports
Oriya 65% Hindi Satellite - Movies

63% English
Kannada
9% Music
Bhojpuri 58%
Kids
Punjabi 38% Others

Telugu 33% 11%

Tamil 30%

Hindi 27% 28%

Malayalam 16%

14
Source: BARC data, road show presentation May 2018, Pitch Madison advertising report 2018
Indian Film industry overview

15
Film Industry
The Indian film industry is the world’s largest in terms of both number of
films produced annually, as well as footfalls; However, it lags behind heavily
in terms of box office collections and screen density

Top countries by number of film productions Top countries by Box office revenue
(USD Billion)

India 1986 USA 10.24

Nigeria 997 China 8.59

USA 791 India 2.39

China 686 Japan 2.25

Japan 594 UK 1.73

0 500 1000 1500 2000 2500 0 5 10 15

Top countries by box office admissions (Millions)

Screen Density of select countries
(screens per million population)

India 2263
USA 125

China 1620
UK 60

USA 1181
South Korea 40

Mexico 331
China 16

South Korea 218

India 8

0 1000 2000 3000

0 50 100 150
Source: Statista

16
Film Industry
The Indian Film Industry is expected to grow at a CAGR of 11.9% till 2020
driven by broadcast/digital rights and in-cinema advertising
Segment-wise break up of Indian Film Industry Revenues over 2016-20

The Indian Film Industry posted a growth of 27%

140 CAGR 11.9% in 2017, driven by box office collections – both
INR 192B
domestic & international.

120
118.0 Domestic theatricals has been the industry’s
INR biggest revenue stream, it contributed over 60% of
103.0 165.7B the total industry revenues in 2017
100 96.3
INR 156B Domestic theatricals along with Overseas
85.6
theatricals have been the key growth drivers,
80 contributing ~78% of the overall industry topline in
INR
122.4B 2017

60 Broadcast rights have been the second largest

revenue stream for the industry –expected to grow
in the coming years.
40
28.0
Sale of digital rights increased massively by 40% in
25.0 25.0 2017 and are expected to continue posting double
20.0 22.0
19.0
20 16.0 14.5 digit growth for the next couple of years.
8.5 8.5 6.4 10.0 7.5 9
6.0 5.9
0.4 0.2 0.2 0.3
0
2016 2017 2018E 2020E

Domestic Theatricals Overseas Theatricals Broadcast Rights

Digital/ OTT Rights In Cinema Advertising Home Video

17
Source: Re-imagining India’s M&E Sector – FICCI Report March 2018
Film Industry
The value chain of the Indian Film Industry comprises of three key
processes - Production, Distribution and Exhibition

Film Production Distribution Exhibition

3 Production
-Shooting Schedule

4 Post-Production
-Editing & Soundtrack

7 Exhibition
2 Pre-Production -Theatricals
(Cinema)
-Cast & Crew Selection
-DVD/Blu-Ray
-Greenlighting Financing
-TV (free/ pay per
view TV)
-OTT
1 Development
-Rights, Acquisitions
-Script Development 5 Promotion 6 Distribution
-Financing -Trailers -Sales
-Advertising -Agreements & Negotiations
-Publicity

18
Film Industry
While the number of profitable films have stayed more or less constant over the past 5
years, loss making films have been increasing in number, on a YoY basis
Concentration of revenues is increasing at the top, while the long tail is loss-making

Performance of Hindi Cinema

Net Domestic BO collections of Top 50 Hindi Films (2013-17)
(INR Billion)

2013 26 45
2017 36
2014 27

2015 26 43
2016
27
2016 27 Flop
2017 30 Losing
24
2015 Super-Hit
35
The Hindi Film Industry certifies 200-300 film releases every Hit
year, but almost 98% of the total net box office collection Plus
can be attributed to just the top 50 films 39
2014 34 Average

There are several contributing factors to this skew in the

industry performance: 34
2013
39
 Increasing cost of production and talent
 Rising importance of quality content
Flop: Film which loses 50% or more of investment
 High distribution costs and challenges Losing: Film which does not recover the investment but loses less than 50% of it.
Super-Hit: Film which more than doubles the investment by additional 50%
Hit: Film which doubles the investment
Plus: Film which recovers investment & yields some profit
Average: Film which only recovers investment

Source: Koimoi.com ; Boxofficeindia.com

19
Film Industry
As Hindi Cinema’s share of total industry revenues decline, Hollywood and Regional
Cinema’s revenues have been on the rise for the past few years.
Revenue Split by Language
100%  Hindi Cinema’s share of total revenues declined to ~40% in
2017 from 43% in 2015
80%  Hollywood and international films steadily increased their
50% 50%
contribution by 3%
60%
 Regional cinema maintained its share at ~50%.
7% 10%  The continued success of regional films can be attributed to the
40%
increasing appetite of audiences for dubbed cinema - especially
in the south as well as the maturing of Marathi and Punjabi
20% 43% 40%
cinema
 There have also been rising investments and interest among
0%
2015 2017 broadcasters as well as digital platforms, to provide regional
cinema to audiences
Hindi Cinema Hollywood and International Films Regional Cinema

Key trends observed in Regional Cinema and Hollywood films

Hollywood’s box office collections

Average occupancy of regional Regional films outdid their
were around INR 8 Billion, with
films increased to 45-46% from Bollywood counterparts overseas,
the top 10 Hollywood films
39-40% in 2016, according to gaining popularity in countries like
accounting for more than half of
BookMyShow Malaysia, South America, UAE etc
the revenues

20
Source: Re-imagining India’s M&E Sector – FICCI Report March 2018; Deloitte Indywood Report September 2016
Film Industry
Even as income from ticket sales remains the dominant revenue generator, advertising and
F&B are also rising revenue streams for major Multiplex chains

Spend per head (INR)

PVR Revenue Streams 2016-17
Growing ATPs and increasing 81
19,130
INR Million
21,820 footfalls together driving 72
growth in movie ticketing 58
62

23%
12% revenues for exhibitors
25%
21%
12%
10%

46% 52% 2016 2017

Inox PVR
Contribution of F&B now up to
2016 2017 23-25% for leading exhibitors

Inox Revenue Streams 2016-17

Average Ticket Price (INR)
11,606 INR Million 12,207
7.8% 7.6% 196

22.9% 23.3% 188

7.8% 7.9%
178

61.4% 61.3% 170

In-Cinema advertisement
revenue growth has begun to
2016 2017
gain momentum
Other Income
Sale of food and beverages 2016 2017
Advertisement Income
Inox PVR
Income from sale of movie tickets
21
Source: Annual Reports
Film Industry
The industry has observed shifting dynamics, in response to internal and
external competition, as well as regulatory changes

Vertical Integration
In order to achieve significant cost advantages,
most film studios have created their own
distribution arms, thus avoiding profit-sharing
Multiplex Entry agreements.
Consolidation OTT
Plat Multiplex Consolidation
The multiplex sector has observed high M&A
activity for the past few years, leading to only few
big players as compared to a highly fragmented
FDI
market 5-6 years ago.
Entry of OTT Platforms
Identifying India as a lucrative market has led to
the entry of many OTT platforms. This has
generated a new revenue stream for film
producers, as well as given a new avenue to
regional/ non-commercial cinema producers for
showcasing their work.
FDI
The Government of India has granted FDI of up to
100 percent, up from the previous limit of 74
percent, through the automatic route.

Treaties with countries

Co-production treaties with nations like Italy, Brazil,
UK and Germany have been signed in order to
improve the export potential of the film industry.

22
Print Media landscape in India
Overview

23
 Print Media
Unlike the global trend, Indian print media continues to grow, largely on
back of the vernacular markets

Market Size of Indian Print Industry (INR bn)

6.8 %
2.6 % 369.3
• The Indian Print industry grew by 2.6% in 2017 to reach
331.4
303.4 INR 303 mn with Hindi and Vernacular languages
296
growing marginally while English de-growing
• Advertising revenues grew by just 1% in 2017 on
account of macro-economic factors such as demonetization,
RERA & GST implementation
• Ad Revenues grew in second half on account of increased
spending by political parties/government for elections,
festival season, focus in yield management, greater customer
engagement

2016 2017 2018 2020 • Subscription revenues grew by 8% due to increase in

circulation in underpenetrated markets, launch of circulation
focused schemes and increase in cover prices
*INR bn 2016 2017 2018E 2020E • Magazines contributed 4.3% to the industry and
remained largely flat with not many new launches.
Advertising 214.8 216.2 238 262.4
• Magazine subscriptions also held on their own and did not
Circulation 80.8 87.3 93.4 106.9 change significantly
Total 295.7 303.4 331.4 369.3 • Going forward the industry is estimated to grow at an overall
CAGR of 6.8% till 2020, with vernacular growing at 8-9%
*INR bn 2016 2017 2018E 2020E followed by English

Newspaper 281.7 290.4 317.2 353.5

Magazines 14.0 13.0 14.3 15.8
Total 295.7 303.4 331.4 369.3
*Gross of Taxes

24
Source: FICCI Frames Reimagining India ME sector March 2018
Print Media | Subscription Overview
Hindi has the largest claimed news circulation at 49% of the total pie

Indian publications by language Indian publications by claimed circulation

12%

41% 49%

47%

12%

H indi E ng lish Other lang ua ges H indi E ng lish Other lang ua ges

• As on March 31, 2017 there were 114,820 registered publications • Hindi newspaper claim nearly half of the circulations in India
in India of which 16,993 were newspapers. • Launch of several circulation generating schemes (apart from
• 4,007 new publications were registered during 2016-17, while 38 bundling and discounting) were undertaken in 2017 as the
ceased, which was a 3.6% growth. industry focused more on subscription, which increased its share
• The maximum publications across any language were in Hindi of revenues from 27% to 29% of total revenues.
(46,587), followed by English (14,365). • Magazine subscriptions on average held their own and did not
significantly change.

25
 Print Media | Advertisement Overview
Hindi and English dailies dominate the advertisement pie; with major
demand drivers being FMCG and Auto sectors

Share of column centimeters 2017 Contribution % Change in ad spend 2017 vs 2016

13%
Media

E-Commerce 11%

Corporate 9%
BFSI
T ravel & T ourism 8%
Clothing,
14% Fashion C lothing , F ashion J ewellery 7%
34% Jewellery
39% R etail 7%
R eal estate
E duc ation 5%
& allied
R etail BFS I 4%
A uto 4%
Education
F MCG 2%
Auto
27% 1%
F MCG Others

Telecom 1%
Others
Hindi English -1% HH Durables

-7% Real Estate & Allied

Other Language
-9% Alcoholic Beverages

2017 saw 61% of total advertising volumes FMCG and Auto were the largest advertising Alcoholic Beverages, Real Estate, Durables
being commanded by Hindi and English categories in 2017 on print, followed by reduced their ad spends on print while the
publications followed by Marathi, Telugu and Education, Retail and Real estate. largest increase were seen in Media and E-
Tamil. commerce categories

26
Print Media Industry
Indian Print Media industry is very different from print media industry in
developed markets owing to the following reasons

• Newspaper cover prices in India are very low and affordable

1} Cost Advantage • Cost is not more than INR 200/month (3 USD), which is close to the cost
of a single newspaper per day in the US

• Most newspapers in India are delivered to customer’s home every

morning, which makes them very accessible & convenient

2} Home Delivery
• In comparison, in the West, people buy newspapers from stands or from
metro stations

• People have developed a deeply entrenched habit to start their day with
reading newspaper

3} Credibility &
Habit
•
•
Members of family with age >35 years still prefer a physical copy
Credibility of news from newspaper higher than other news sources

• Newspapers are the primary medium that caters to local

4
neighborhood/city news
Localization
• Localization along with credibility helps them to cater to a loyal and diverse
set of readers

27
Increasing Competition
Traditional newspapers have faced increased competition lately from other
firms, primarily because of consumption of news digitally

• Almost all print companies are foraying into digital by establishing their own
news websites/apps
Digital moves from
incumbents • There is competition among incumbents to increase digital footprint, however
digital content monetization is significantly low

• There has been a rapid rise in domestic digital-born startups such as Scroll,
Rise of Start ups & Quartz India & Quint that is eating the share of physical news players
aggregators
• There is also rise of news aggregators such as Inshorts, Firstpost & Daily-
Hunt that feed digital readers with short & crisp content

• There is rapid growth in social media content consumption over the last few
Emergence of years, spurn by large global social media players such as Yahoo, Facebook &
social media Google
players
• These players enjoy wide user-base and hence tap into the needs of Indian
readers & even personalize the content through use of analytics

28
Digital Trends shaping the print industry
Leading Print companies are increasingly making use of technology to better
manage employee utilization and to provide superior customer experience

optical character recognition workflow tools and machine learning

Robotics Process
Automation

prevent duplication of
newsgathering efforts, improved scheduling, prioritization of news
Integrated Newsroom better utilization of stories

single view of their customers

Analytics & Loyalty

self-care portals

Self Care

29
Music industry in India
Overview

30
Digital Music – Setting the context
Indian Digital music industry to touch INR 3100 Crores by 2020

Digital music revenue (INR Cr) Revenue streams in 2017 for digital music

CAGR 34.3%
20%

Ad Supported streams
2%
3100 Mobile customization

53% Downloads
Others
1280 25%

2017 2020

Key drivers for growth in digital music in India

Smartphone penetration Associated industries

More listeners of online expected to grow. In 2017, with music entering Rise is usage of e-
music - 273 million 93% of people reported used 3G and 4G uptake is digital music space banking and wallets
online music listeners by mobile devices for music; Up expected to grow. Will enabling in-app
2020 from 85 % help growth of digital purchases leading to
music consumption higher usage

31
Source: FICCI Frames Reimagining India ME sector March 2018; Digital Media: Rise of On-demand Content, Deloitte report, 2015
Emerging themes in digital music industry
Exciting avenues ahead

Increase in data consumption

Trends in the digital music Industry Easy availability of cheap & affordable data tariff plans
coupled with increasing smartphone penetration in
both urban as well as sub-urban areas has led to
increased data consumption for audio as well as video
platforms

Growing Competitive
Market
The market is becoming increasingly Increase in AVOD spends
competitive with multiple players Music and video streaming platforms are
offering music streaming and other expected to further witness a boost in
services. Moreover, content their revenues on account of increase in
partnerships in the digital / OTT spends in advertisements on digital
space such as Jio and Saavn are platforms. This would lead to further
poised to put additional pressure on monetization for both streaming
the existing players such as Wynk, companies as well as record labels
Apple Music

Impact of technology Growth in consumption

on music of other genres of music
Major infrastructural improvements Evolving consumer preferences & tastes
and impact of evolving coupled with increasing availability of
technologies such as AI and Data greater variety of content is further
Analytics are proving pivotal in Partnerships promoting consumption of content in
understanding consumer regional languages.
OTT players have looked to partner
preferences and assisting
with local talent to develop original
musicians, artists and record
music content
labels to successfully create and
e.g. BeingU Music and Sony Music
curate preferred content
working on exclusive partnership and
introducing original content in 2018

32
Sports industry overview
Overview

33
Indian Sports Industry
The professional sports industry mainly derives its value from sponsorships (both
central and team), media rights for broadcast across various channels, league and
ticketing revenue

Sources of revenue for professional sports federations and teams

TV broadcasting rights Theatrical rights

Sale of Media rights
Digital broadcasting rights Marketing support

On-ground sponsorship Media spends

Sponsorships Team sponsorship
Endorsements Franchisee sponsorship

Franchisee fees Gate revenues

Franchisee revenues

Share of local revenues

Sale of media rights typically contributes 55-70% of total revenues for any sports organization while
sponsorships account for ~20% of the overall topline

34
Indian Sports Industry | Media rights
The sale of media and broadcasting rights is usually for the biggest source
of revenue for teams and other sporting organizations, accounting for more
than 50% of topline
% of broadcasting revenues
Sale of Media rights by BCCI Earnings per match for BCCI
in India (2016)
(INR crore) excl. IPL –(INR crore)

60.18
16,348
8,200
43.2

Indian 6,138
Cricket 3,851
Cricket (including International, Domestic
matches and IPL)
Other Sports (Hockey, Football,
Basketball, Kabaddi) 2018-23 2012-18 2012-18 2018-23

Key players in the Indian Sports broadcasting Industry

With increasing TV and mobile phone penetration across the rural as well as Urban parts of the country, broadcasting firms
in the country have increasingly been focusing on developing not only their traditional TV portfolio but also their digital
internet and mobile channels, luring customers with continuous content innovation, live feeds and other product offerings

Major TV networks Major digital platforms

35
Source :EY – Sports in India, FICCI : Re-imagining India’s M&E sector 2018, Economic Times
Indian Sports Industry | Media rights
Cricket is the most popular sport on TV; Soccer, Kabaddi and Wrestling are
emerging categories

Unique viewers of Sports leagues in 2016 (mn) Popular Sports properties in India on TV-2017
(% of impressions)
Others
362 60% of the overall viewership Soccer
5%
came from Cricket in 2016 5%

Wrestling
224 220 5%

109 Kabaddi
16%

Cricket
69%
Indian Premier Indian Super Pro Kabaddi Pro Wrestling
League League League League

Viewership for major leagues such as IPL, ISL • Data suggests that Cricket continues to be the most popular
and PKL sport in the country with 69% of the overall number of TV
impressions in the country coming from domestic and
International Cricketing events

• While cricket continues to be the most popular sport, other

sports such as Kabaddi, Soccer and Wrestling are gradually
picking up

• Kabaddi and Soccer are the second and third most watched
sports in the country respectively, owing to successful closure
of Pro-Kabaddi and Indian Super League seasons and
aggressive promotional campaigns
Male Female Rural Urban
36
Source: Internet and Mobile Association of India, BARC India, FICCI : Re-imagining India’s M&E sector 2018
Gaming industry landscape
Overview

37
India’s online gaming opportunity
This mobile-first behavior is translating into a huge market opportunity for
online-gaming industry in India
Online Gaming Revenues (in INR billion)
Indians are spending over 150 minutes a day on mobile apps –
31%
with 72% on social media, entertainment and gaming
68.3
17.6%

Segment wise time-spent on mobile apps for an Indian user 40.1

30.4
100% = 150 mins / day 25.9

Social Media & Instant messaging 2016 2017 2018E 2020E

*Excludes Console Gaming, Casinos, Lotteries and offline betting

Entertainment 28%

Games
48% Gamers in India (in millions)
4%
24
Others
20% 25

25
25
312
37 253
40 200
158
88 108

2015 2016 2017 2018 2019 2020

Mobile gamers Non-mobile gamers

38
Source: comScore MMX Multi-Platform, Dec 2017
India’s online gaming opportunity
Spends per gamer are gradually increasing although still lower than global
benchmarks; real money and social gamers driving the spends
Revenue Streams
• Online gaming industry divided into three main genres:
• Casual Games
• Social Games In-app/
• Real Money Games Advertising Commissions
subscription
• Currently the size of the Real Money games is estimated to be
55% of the total gaming industry, growing at a robust 25% per Casual games 70% 30%
annum
• Online card games have been the fastest growing segment:
Includes both real money & social games Social games 10% 90%

• In social games, players play for virtual currency which they

can replenish through in-app purchases Real money
100%
games

• In India, spend per mobile gamer reached 2.6 USD in 2017 and
envisaged to grow further in near future in form of real money and
Spend per mobile gamer (in USD) social games purchases
32 • Other consumer companies will also realize gaming as an
important platform for advertising their products resulting in
increased revenue
23
• Indian media houses are using gaming as an interactive form of
entertainment to engage consumers
15
12 • More Partnerships with Bollywood studios in game development
10 for movies that have been widely accepted by Indian masses is a
7.5 7.5
5.1 revenue-making opportunity for gaming companies
4.5
2 2.6
1.2 • Baahubali: The Game and Sultan: The Game are some of the top
most downloaded games in India
2015 2016 2017

India China SEA MEA

39
Indian Online Gaming
Key trends that will shape the Indian industry
1
Freemium gam es to create Convergence of st akeholders to
better econom ics for gam ing drive adoption and usage of
co m pan ies mobile internet
2

8
Content custo m ization for Emerging technologies to
the ‘Indian’ taste: Local becom e a
brand com m ercial reality in India

2021
Indian online gaming industry
poised to grow to 1 billion USD
and 310 million online gamers
Enhanced customer lifecycle at by 2021 e-Sport s to au g m ent
every stage: Pow er of data engagem ent levels in online
gam ing
7
4

Improved age and gender parit y in Gamification to offer

the online gam ing population opportu n ities across business
functions and sector s
5
6
40
India’s online gaming – future monetization models
Although the current monetization model of online gaming companies is
more advertisement dependent; with increasing volumes and usage, more
revenue realization from online gamers themselves is anticipated

Advertisements generate maximum revenue

CURRENT

Banner advertisements based on cost per

In app
click (CPC) or cost-per-mile (CPM) metrics
advertisement

In-game product or Popular brands or products placed in the

Paid by brand placement game-play
Ecosystem
Virtual objects/game-play requisite or
Incentive based
access to the game by watching an
advertisement
advertisement

FUTURE
Revenue from purchases & advertisements to be equally balanced

Upfront charge for download or access to

Purchase/pay-per-
the game
download

Free download but charge to get full

Freemium/upgrades access to characters, levels, equipment
etc.
Paid by
Online Gamers pay to purchase virtual objects or
gamers In-app purchases currency

Monthly or annual subscription for access

Subscription to a package (virtual objects, extended
access to the game or a combination)

41
 Jehil Thakkar

Thank you!
Head, Media & Entertainment
Partner, Deloitte Touche Tohmatsu India LLP