Credit Suisse Global Media analysts William Drewary, Jolanta Masojada and Ashish Gupta have written a detailed report on the Indian media industry, titled ‘Opportunities for Hollywood in Bollywood’, based on their recent meetings with the Indian media companies. The report not only contains a comprehensive profile of the Indian industry with discussions on opportunities, regulations and prospects but also includes helpful comparisons with similar industries in other countries, particularly China.
The report indicates that India is one of the four BRIC (Brazil, Russia, India and China) countries where the researchers believe there are significant revenue and profit opportunities for global media companies over the near to intermediate term. Each of the four ‘emerging growth’ markets might hold significant long term opportunity for global media, but the opportunities to distribute content and leverage a traditional advertising and subscription revenue model are now in place in India.
The report also stated, “India is poised to continue rapid growth for several years as the multi channel TV business is evolving toward a digital platform that will expand the market as well as the ability for content providers to actually get paid.”
”News Corp, Disney and Sony are best positioned among the biggest global media companies to capitalise on opportunities in India. This is due in part to their existing operations and in the case of Disney also due to recent acquisitions. This list could expand significantly, and Viacom, Time Warner and Discovery are already on the ground. We expect most, if not all, of the major media companies to establish ‘a play on India’ at some point,” the report further said.
According to the report, “Cable networks, syndicated TV shows and film production as well as Internet and mobile content will be the main products sold into India – many of these businesses are already established, as this report details. There is a large local media infrastructure in the country as well, with many publicly traded companies – though market cap size is a fraction of the US based companies.”
The report also noted that the lack of physical infrastructure in India was striking – a fact noted by many that the researchers met as an impediment of sorts to building businesses in the country. Rather than a conclusion this is an issue that will evolve over time, and the entrepreneurial spirit and democratic/capitalist society should eventually override the physical infrastructure limitations.