India, the Window of Opportunity

By Pickle  September 14, 2020
India, the Window of Opportunity, Pickle Media

The policies of the Ministry of Information & Broadcasting, Government of India, are fully geared towards realising the complete potential of the M&E sector by forging global partnerships and providing an enabling environment by lowering market barriers and propelling growth

In the rapidly changing global media and entertainment landscape, India has emerged as a window of opportunity to position itself as a hub for audiovisual services for the rest of the world. Media and Entertainment is one of the champion sectors supported by the Government of India. The incentives for the audiovisual services that closely match the sops given by various other nations are already finalised by the Ministry of Information & Broadcasting. They are waiting for the appropriate time to announce incentives that is set to handhold industry in the aftermath of Covid-19 pandemic.

India has probably one of the most liberal investment regimes in the media and entertainment, information and communication sector amongst the emerging economies with a conducive foreign direct investment (FDI) environment and ease of doing business.

Digitization and the growth of the internet are reducing many barriers to market entry and creating opportunities for smaller companies’ offering skills and services in new forms of content creation for various platforms.

In the current scenario, the Indian animation (IPs included) and VFX Services have gained a lot of traction among the international producers and production houses. In the following pages we have curated 15 animation co-production projects seeking partners at the Toronto International Film Festival 2020.

In the aftermath of coronavirus pandemic, Indian media, entertainment and technology services are witnessing new growth opportunities on the back of growing offshore services domain, especially in animation, VFX, gaming, AR/VR and digital media, among others.

Many companies have created top-end studio facilities in India that serve as single windows to fulfil the needs of the M&E industry (Technicolour India, Deluxe). Their international business model offers local and remote clients the opportunity to produce and co-produce and distribute content anywhere around the world.

Media & Entertainment sector has been supported by the Government of India as one of the champion sectors with immense potential of growth both within and outside the country. Media and Entertainment is also among the sectors that clearly has made an impact of Make in India, Show the World. For services it is Make in India, Serve the World.

The role of the Ministry of Information & Broadcasting is to facilitate the industry to create jobs and growth for the sector. The government’s efforts are driven towards creation of forums and forge partnerships to keep the momentum going.

Content produced for Indian media sectors holds tremendous potential for global consumption. With a significant diaspora population residing overseas, Indian content is a key tool for these communities to connect with their cultural roots.

The Indian film industry is fairly unique in the world. The country, along with America and China, is among the few that can sustain their industry domestically. You can make a film just for India, or even one region within India. Once when the Government gives green signal to open theatres there are over 83 films waiting to be released in India. OTT players like Amazon Prime, Netflix, Disney + Hostar, ZEE5 have brought in a transformation in expanding Indian content reach to over 100 territories across the world.

India, the Window of Opportunity, Pickle Media

CO-PRODUCTION

India has audio visual co-production treaties with over 15 countries — Bangladesh, Canada, China, France, Germany, Israel, Italy, Republic of Korea, New Zealand, Poland, Portugal, Spain, UK & Northern Ireland, Bangladesh, Russia. It is now possible for filmmakers of different countries to come together and make films under bilateral co–production agreements. Co-productions under these agreements are more beneficial to filmmakers than a purely commercial partnership between two individuals or entities. New markets and audiences would be available for the product, especially if collaborations and partnerships are between nationals of different countries.

The Ministry of Information & Broadcasting is currently finalising incentives for co-production, filming under the champion sector scheme. In addition to films, TV Series, Web Series, Animation will be also be included in the co-production projects.

AUGMENTED REALITY

The Augmented and Virtual Reality, the two spectrums of immersive technology, will form the next frontier of growth for the M&E industry. For India, AR/VR can open up new creative avenues. According to a report, the Indian AR/VR market is expected to grow at a CAGR of 76 percent over the next five years, fuelled by demand from business and consumer sectors. The past few years have witnessed the emergence of over 200 AR/VR start-ups in the country. Bengaluru and Hyderabad take the lead, attracting a big chunk of these start-ups, followed by Delhi and Mumbai. Among states, Karnataka and Telengana are actively promoting AR/VR startups by providing incubation, mentoring, idea validation by experts, opportunities to deploy pilots with various departments, along with fund support for eligible ones. This was the major takeaway at the recently concluded Global AVGC Summit FX 2020 organised by the Confederation of Indian Industry.

VIDEO GAMES

Dinesh Gupta, Director and Co-Founder at Sacom in one of the the recent Pickle columns mentioned massive growth opportunities in video gaming. Statista’s Global Digital Market Outlook pegs the digital media market at US$ 172,502mn in 2020 with a 9.8% year-on-year growth projection. This forecast was adjusted for expected global impact of Covid-19 pandemic. Video Games share with a projected market volume of US$ 92,633 mn and 11.41% growth over previous year dominates the digital media market with a close to 54% worldwide share. This makes the Video Games industry much bigger than Video-on-Demand, ePublishing and Digital Music put together. Majority of the revenues for video gaming are contributed by mobile gaming which is likely to contribute as much as 60% in 2020.

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