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Tune into the entertainment boom says FICCI

Mar 28, 2000

The domestic entertainment and the animation industry has been forecast to touch a turnover of $ 147 bn (Rs 6500 bn) and $ 77 bn (Rs 3400 bn) respectively by the year 2005. This is in a study conducted by Federation of Indian Chambers of Commerce and Industry (FICCI) in association with Arthur Andersen. The key to understanding how the entertainment industry operates is to consider a three–link chain. First are the studios (including the animation studios) which comprise the hardware part of the industry, the second are the content providers and the third link comprises the distribution trolley’s comprising the cable and satellite channels as well as the multiplex theatres.

The action today is concentrated in film exports (where there is a huge overseas demand for Indian movies), animation (Crest, Pentamedia and the UTV are the players here) and general television software (due to proliferation of the channels). As far as the music and entertainment infrastructure areas are concerned players such as Zee, Star and Sun TV are investing heavily but the returns are still some years away.

The models that these players are following are on the lines of the international studios such as Time Warner, Disney, Viacom, Sony, News Corp. Bertelsmann and Seagram have tried to straddle the value chain. Almost each of them have strived to have a presence in television production, satellite production, film productions, broadcast TV, cable TV, Satellite TV, music, publishing, theme parks and the internet.

This is because the value of a good entertainment product usually grows with time. It can be released on video, its satellite rights can be sold and a sound track album can be released. Also, it can play on local and overseas cables, it can be merchandised by selling T-shirts and related products, it can be marketed on the internet - and in the future it can be recycled yet again to a nostalgic audience.

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