CII Big Picture Summit 2015 Retrospective

Towards $100 billion indian M&E

indusTry

naTional policy for

high growTh of M&E

CII BIG PICTURE SUMMITNew Delhi, 19-20 October 2015

RETROSPECTIVE

CII BIg PICture SummIt www.ciibigpicture.com2 CII BIg PICture SummIt www.ciibigpicture.com 1

The Confederation of Indian Industry’s Big Picture Summit 2015 held between October 19-20 in New Delhi ended on a bright note with convergence of various

media getting a major boost to work towards a National Policy for high M&E growth.

The summit deliberated on not only the form of this new convergence, but also how to design a new law to facilitate it in accordance with the technology shaping up the new digital world. Deliberations on innovation and disruptive business models were among the talking points at the summit.

The mega event assumed significance in view of the push for the M&E industry towards achieving $100 billion growth by the end of 2025. We brought together the best of business minds in the M&E space to chalk out a roadmap on the policy front and regulatory interventions that would give a boost to this sector.

The government, regulator, academia and civil society joined the discussions to sug-gest policy changes and new ways to boost M&E sector’s revenues and growth.

We are extremely thankful to Shri Arun Jaitley, Minister of Finance and Minister of Information & Broadcasting, to have met a CII delegation of top M&E CEOs and discuss issues pertaining to the industry during the summit.

The Minister of State for Information & Broadcasting Col. Rajyavardhan Rathore in his inaugural address provided clarity on the government’s vision and boosted the Indian M&E industry’s confidence for the goal of $100 billion to be achievable through a collaborative approach.

CII also organised a CEOs Roundtable with Shri Sunil Aroa, Secretary, Information and Broadcasting, to discuss various issues related to the National Policy for high growth of the M&E sector.

The fourth edition of CII Big Picture Summit has infused a new breath of life to this sector whose soft power can bring innumerable benefits to the Indian economy. It has brought a fresh mindset to leap forward in this sector.

CII’s vision is to create growth templates in all M&E verticals and bring the in-dustry together and speak in a united voice for all major issues. An innovative push from the government in an enabling regulatory infrastructure and policy reforms will create a world class knowledge driven entertainment economy for India.

From the desk oF dG, CII

CII Big Picture summit 2015

BEST MINDS BEST TALENT BEST CONTENT

Chandrajit BanerjeeDirector GeneralConfederation of Indian Industry


CII honours Ajay devgn for his Contribution to

Indian CinemaSudhanshu Vats in conversation with Ajay Devgn


Ajay Devgn, who has been a part of Indian film industry for over two decades, was felicitated on

October 19 for his valuable contribution to the Indian cinema at the opening day of Confederation of Indian Industry (CII)’s Big Picture Summit.

The two-time National Award-winning film actor is today among Bolywood’s most bankable box office stars. It isn’t his crowd-pulling prowess alone that defines him. His approach to his star status sets him apart from the crowd.

Primarily, his fans get to see Devgn only on the big screen. As his public appear-ances are rare, the seasoned actor lets his films do the talking for him. Like a true-blue professional, he has steadily evolved with age even if it might be fair to say that not every huge box-office grosser that he spearheads today does justice to the actor in him.

Devgn projects a wide range of screen personas with effortless ease – from fire-spewing crime-busters in commer-cial potboilers to the poker-faced lead in the Golmaal series of laugh riots to strong and brooding men in intense, off-mainstream human dramas.

“When you are an actor you do not think about genres... When you are doing comedy you do think, ‘Oh I wish I was doing a serious film as it takes less en-ergy’. Comedy needs a lot of energy and timing. When you are doing action you feel tiring. I like to switch and do dif-ferent things,” Ajay said after being fe-licitated by Sudhanshu Vats, chairman, CII National Committee on Media and Entertainment and Group CEO, Viacom 18 Media Pvt. Ltd, for his contribution to the Indian cinema.

For nearly a decade after his debut, he was seen by industry observers princi-pally as a non-actor, an action hero with panache for crowd-pleasing flamboy-ance. His fight sequences, his on-screen stunts, and his rough and ready meth-ods endeared him to many segments of the mass audience.

But that is a thing of the past although Devgn’s action hero image is far from history as films such as Action Jackson and Son of Sardaar prove.

By the turn of the millennium, the ac-tor had added many new layers to his screen persona, which helped him bag the National Award for Best Actor twice in the span of five years – for Mahesh Bhatt’s Zakhm (1998) and Rajkumar Santoshi’s The Legend of Bhagat Singh (2002).

“I’ve worked with every kind of director. In the 1990s I was the first actor, who started working in so called ‘art cinema’. Today it is not called art cinema as there are no films like ‘Dil Kya Kare’ or directors like Govind Nihalani, Rituparno Ghosh,” the 46-year-old actor said.

While Zakhm was indeed the turning point of Devgn’s career, he had begun to show signs of his latent emoting prow-ess much earlier, notably in films such as Naajayaz, made by Mahesh Bhatt in the mid-1990s.

“I had those films where people thought I was crazy as a commer-cial actor doing films like these. But I learned a lot from these films. Also I’ve a lot of respect for Mahesh Bhatt. The only thing I tell everybody and tell him also is that I wish he could come back and direct again. His last film that he directed was ‘Zakhm’ for which I got a National Award and after that he quit. So I really miss him,” the actor said.

His powerful performance in Najaayaz, in which he, playing the illegitimate son of an underworld don, managed to hold his own against an actor of the proven calibre of Naseeruddin Shah, was ap-plauded. People sat up and took notice of the brooding eyes, the ability to

convey simmering anger with remark-able economy, and the willingness to experiment with character hues.

Devgn announced his arrival on the Bol-lywood firmament with a bang in 1991 with the super-successful Phool Aur Kaante. But for several years produc-ers kept him pinned down to roles that exploited the stuntman in him, not the actor.

But he successfully broke free from those moorings and achieved greatness as a star and an actor. By experiment-ing with a wide array of genres, he has prevented himself from falling into the trap of any kind of stereotypes.

Today, at one end of the spectrum is his string of hard-hitting politically inflected films with Prakash Jha (Gangaajal, Apaharan, Rajneeti). On the other is his association with Rohit Shetty, with whom he has not only done the three Golmaal films and Bol Bachchan, but also Singham and Singham Returns.

The actor is also known for donning hats of a director and a producer as well.

When asked which one he likes doing more, the actor said: “I won’t say that donning the hat of a producer is my favourite one but I love doing it because it stresses you out too much. Rest as an actor or a director, I’m pretty much comfortable handing both, so I don’t have to worry about that.

Devgn is one of the few contemporary Bollywood stars who recognize the importance of keeping the image trap at bay. He is quality-conscious, prag-matic and absolutely clear about what he wants to extract from his craft. This enables him to play characters rather than himself on the big screen.

At 46, he is a Bollywood elder states-man who has paved the way for many younger actors who want to strike a balance between action roles and emotionally nuanced characters. If screenplays with both depth and range are available today in Hindi mainstream cinema more freely than ever before, then the contribution of the likes of Devgn has to be acknowledged.

the two-time National Award-winning film actor is today among Bolywood’s most bankable box office stars

Ajay DevganActor

As his public appearances are rare, the seasoned actor lets his films do the talking for him


Walking Hand in Hand With IndustryThe government is seeking a

partnership with the Media and Entertainment (M&E) Industry

to set up an Institute of Excellence for Gaming and Animation, said Minis-ter of State for Information & Broad-casting Col. Rajyavardhan Rathore at the CII-Big Picture Summit 2015 held in Delhi from October 19 to 20.

The setting up of the institute has been under discussion in view of the skill development potential of the M&E sector “where the youth work-force could act as a force multiplier”, the minister said.

The proposed joint initiative could lead to the convergence of content, skill and technology in the M&E domain, Col. Rathore said.

He commended the Indian media for its reach and ability to drive the economy. “You are in the mind of every Indian, your reach is amazing and you are driving the thought process and country’s economy,” the minister told the M&E industry leaders.

Regarding the various initiatives undertaken by the government, Col. Rathore said the potential of India as a “film shooting destination” is a part of the government’s proactive initiative in the policy domain.

The ministry is pursuing the idea of funding Indian films in collabora-tion with the industry to participate in prestigious international awards such as Oscar and film festivals like Cannes, he added.

This is being done in view of Hon’ble Prime Minister Narendra Modi’s vision to strengthen India’s soft power po-tential. In this context, the Ministry is also considering making the National Film Development Corporation of India (NFDC) a single window institu-tion for all film shooting permissions in India, he said.

The Minister called upon the industry leaders to provide “out of box solu-tions” to promote cinema through small and mobile theatres in rural areas to enhance its reach.

In his address, Col. Rathore empha-sized that the future roadmap of the M&E sector depended upon tech-nology, creativity and vision to tap resources for optimal utilization. The government’s policy would incorpo-rate the same keeping in mind the contemporary M&E domain frame-work, according to the minister.

Highlighting some Ministry initiatives, Col. Rathore emphasized the success of FM Phase III auctions in light of the transparent process adopted, measures being put in place to fast track digitization and the emphasis of the government on Social Media and Digital advertising to ensure enhanced presence of government initiatives.

Col. Rathore also emphasized the need to provide top class training to the media fraternity so as to ensure good quality skills and content in view of the challenges facing the sector.

Col. Rajyavardhan Singh RathoreMinister of State for Information & Broadcasting

Besides seeking several joint initiatives with the m&e indistry, the minister called upon the industry leaders to provide “out of box solutions” to promote cinema through small and mobile theatres in rural areas to enhance its reach


Coming up, a Comprehensive Policy

Participating at the CII CEOs Roundtable on October 12 with media and entertainment in-dustry leaders, Mr Sunil Arora, Secretary, Min-

istry of Information & Broadcasting said the Ministry will soon draft a comprehensive policy document that will give a roadmap for the M&E industry to grow and scale new heights.

However, Mr Sunil Arora made it clear that a “robust self regulation” is what will be looked into.

In a candid 120-minute discussion with M&E CEOs across verticals, Mr Arora gave a patient hearing on roadblocks faced by industry -- single window clear-ance, ease of doing business, infrastructure, screen density, skills, increase in FDI among others.

Mr Arora promised collaboration with the M&E indus-try initiating more than “baby steps” needed by the sector to grow to new heights. Bearing issues impact-ing national security, Mr Arora maintained that “all issues raised by CEOs are eminently doable”.

Mr Arora said that within the I&B Ministry there is already is a sub-group headed by Mr J S Mathur, Spe-cial Secretary, Ministry of Information & Broadcast-ing whose terms of reference are now being recast. A new terms of reference (including the policy related issues) will be issued after deliberation with the M&E industry.

“We should have a mental time frame of two to three months months to give some kind of a tangible docu-ment. And, we will involve all stakeholders at various stages,” said Mr Arora. “When a certain document is ready it will be put on the website for a wider consul-tation.”

The comprehensive policy framework is likely to encompass all M&E verticals. As issues related to films come under the ambit of state governments, few secretaries from states will be included in the sub-group.

Mr Sunil Arora Secretary, Ministry of Information & Broadcasting, Government of India

We should have a mental time frame of two to three months to give some kind of a tangible document. And, we will involve all stakeholders at various stages

CII organised a CEOs Roundtable with Mr Sunil Arora, Secretary, Ministry of Information & Broadcasting on issues related to the National Policy for High Growth of M&E


Media and Entertainment CEOs were jubilant and encouraged after two-hours of interaction with Mr Sunil Arora, Secretary, Ministry of Information & Broadcasting, Government of India, during a roundtable conference in New Delhi on October 12, 2015.Senior government officials Mr J S Mathur, Special Secretary, Minstry of I&B, Mr Sanjay Murthy JS (Films), Ms R Jaya JS (Broadcast) and Mr Punit Kansal JS (Broadcast) were also present during the discussion with Mr Arora.CEOs representing across M&E verticals were optimistic and expressed a new air of confidence. “We have not seen this kind of frank discussion in recent times.” This was the constant refrain among media leaders who were present at the discussion.Issues related to ease of doing business, creating business-friendly environment, film certication, single-window clearance for film shootings, spectrum for radio, carriage fees among others were discussed during the round-table.“It is a very progressive meeting attended by all major stakeholders. The Secretary has a clear plan with time-line of three months. We look forward to working with the group led by Mr J S Mathur,” said Mr Sudhanshu Vats, Chairman, CII National Committee on Media & Entertainment and Group CEO, Viacom 18 Media Pvt. Ltd.CII CEOs Roundtable with Mr Sunil Arora,

Secretary, Ministry of Information & Broadcasting

FruitFul discussion, it WAs


Create an objective & transparent construct for freedom of speech and social responsibility

Policy to take care of evolution of new technologies across all verticals of the sector

Incentivizing investment in content & technology through innovation and protecting IP

Fair property rights regime - IPR policy. Pro-active policy initiatives are needed to do away with piracy

Give potential investors a clear roadmap for the next decade

A “feather touch” regulatory approach to facilitate growth in the new converged and changing media space and business models

Market led pricing with parity across different media – pricing deregulation, transparency in distribution/value chain

Infrastructure status to media and entertainment industry as information industry

Build M&E into an economic powerhouse & target growing contribution to 2% of GDP

Make India a leading force in creative industries globally

Improve ease of doing business

Need for a clear policy to achieve explosive growth similar to sectors like IT & Telecom which were backed by supportive policy

The Indian M&E industry looks forward to a national policy that will visualize a clear cut roadmap to make India a media super power of the world

Desired Policy Changes

The Indian M&E industry looks forward to a policy that will visualize a clear cut roadmap to make India a media superpower of the world


M&E Undergoing Transformation

Under GST everybody will be getting credits. There will be cross ad-

justments of credits

The tax levied by local bodies like panchayats

and municipalities would remain the same as it is

a major source of income to the local bodies. But the share of such taxes

to the total tax collected would be insignificant

The GST will bring in certainty of taxes. You will not be dealing with multiplicity of tax au-

thorities. There will be a common portal of GST Network (GSTN) to pay

taxes

The multiplicity of tax will go in one stroke.

Entertainment, services and goods tax both at the Centre and states will be built into one, making compliance

hassle free

The rolling out of GST will have a huge positive effect on the

Media & Entertainment industry

The M&E industry landscape in the coun-try is undergoing transformation and

this is a challenge for all stakeholders, said Special Secretary, Ministry of Information & Broadcasting, Mr. J.S. Mathur, in his address at the CII Big Picture Summit.

He emphasized that the government has taken many initiatives for providing an enabling environment for the growth of the sector. He said the rapidly changing technol-ogy provides great opportunities for various industry players in the sector - specifically content developers and creators.

Mr. Mathur said the government is commit-ted to an enabling environment and the CII Big Picture Summit’s intent to work towards the goal to achieve $100 billion M&E sector is commendable.

He said the single window clearance for for-eign film shooting will soon take off. While the issue of self regulation is set at rest, it needs more debate and introspection, he added.

Mr J S MathurSpecial Secretary Ministry of Information & Broadcasting Ms Rashmi Verma

Special Secretary Revenue, Ministry of Finance

Under GST there will be no concession or incen-

tives to any industry. However, states which are wanting to continue with the fiscal conces-

sions (like entertainment tax) could do so setting apart resources from

their own kitty


The GST model law will be put on public domain. Nothing will be implemented without getting

feedback from public domain. Don’t second guess as to what is going to happen. Respond when the rules are put on the public domain. Judge us on what has

been put on public domain

Call for Shared Approach

A consortium approach should be followed by the M&E industry and

the government to promote the conver-gence of TV and radio through smart phones to realize its true potential, said Mr. Jawhar Sircar, CEO, Prasar Bharati, as he addressed the M&E industry leaders at the fourth edition of CII Big Picture Summit 2015.

Mr. Sircar said Prasar Bharti is sitting over bandwidth to broadcast signals enough to carry over 20 channels to be received by smart phones (via dongle).

He said there will be over 200 million smart phones in India in the next 18 months (currently 100 million) and it is time a consortium is formed to approach the government. This can also be run initially as an experiment in four metros, he added.

He suggested that a shared approach should be there among the players to make use of the vast infrastructure of the government.

Three Pillars of GSTMr V Krishnan, Member, Service Tax, Ministry of Finance, said that the three pillars of GST would be rate, technology and legislation. Regarding rate, he said that National Institute of Public Finance and Policy (NIPFP) was looking into the possible rate structure which could keep cascading effect to the minimal.

On technology, Infosys was entrusted with the task of creating a world class portal to provide for an IT platform for the implementation of the GST.

On legislation, he assured that industry would be consulted at every stage to bring to the fore their views, concerns and suggestions to be incorporated in the GST framework.

Mr Krishnan said GST is one of the most important reforms in post independent India. “It is going to enormously in-crease the volume of economic activity. It is going to have a multiplier effect. The volume of trade will go up. You will be surprised with the kind of opportuni-ties that are going to come.

V S KrishnanMember Central Board of Excise & Customs (CBEC)

Jawhar SircarCEO, Prasar Bharati


Future is ContractingThe way we look at future is changing,

bringing with it a lot of challenges for the industry, said Mr Sudhanshu Vats,

Chairman, CII National Committee on Media & Entertainment and Group CEO, Viacom 18 Media Pvt. Ltd, at the CII-Big Picture Summit in New Delhi.

“Future is contracting. Earlier when we talked about future we would have a 20 year horizon in mind, subsequently we talked about future with a 10 year horizon in mind. But today when we talk about future we talk in terms of five years and moving ahead it will be reduced to a two year horizon,” Mr. Vats said.

A positive thing happening with the contract-ing future is that it is increasing the canvas for the media and entertainment sector, the Viacom 18 CEO said.

He spoke about convergence in the M&E sector. According to Mr. Vats, convergence in the new media sector is about three key constituents -- content creation, content platforms and com-munities.

“Content creators are indispensable in any period and they have been playing their roles beautifully. The new technology is develop-ing content platforms in a big way. Indeed, content platforms are evolving with new technologies,” Mr. Vats emphasized.

Earlier, content creators and content plat-forms were catering to various communities. But when we look at the shortened horizon of 2020 we find that these are not linear, he said.

“In the past there were content creators, con-tent platforms and communities. But today they have begun to overalp. Today there are communities who you cater to, who may one day become content creators or platforms, particularly through social media. There is an overlap happening between these three con-stituencies. And this overlap is brining disrup-tions,” Mr. Vats pointed out.

Disruptions which need to be made are to be made here and now, he said. “And it will hap-pen whether we like it or not. It is the ability to keep pace with these disruptions which is

important,” Mr. Vats suggested.

For the M&E sector to enter its next growth orbit, there is a need to focus on three key issues, he said.

The first one, Mr. Vats said, is improvement in ease of doing business. “This refers to the licensing and permissions regime for channels, events, films, satellite bandwidth, etc. Firstly, we need to create consensus on which ones out of these are absolutely crucial. Once we’ve arrived at that consensus we need to create an online, timeline-based, single-window and transparent mechanism for receiving these permissions. Time to market is an extremely critical metric for media organizations,” he said.

The second crucial issue is the need to grow infrastructure investments. “These refer to investments to improve connectivity, build talent and improve the physical ecosystem for making India the M&E hub of the world (e.g. venues, production studios, hotels, travel, convention centres and the like). You see our sector finds itself in the unique position of a force multiplier. We drive many other ecosystems. For our sector to grow, these ecosystems also have to grow and vice versa,” Mr. Vats observed.

The third crucial factor, he said, is transition towards a freemarket based paradigm for regulation. “The sooner we move towards a freemarket based regulatory construct the more competitive we can be on the global stage. We need to unshackle pricing, ensure parity of norms across different media plat-forms given the reality of convergence and announce a fair, well-thought and equitable property rights regime,” he added.

Mr. Vats said that he believed that it is the skills and the human capital that will be able to build the Indian M&E sector.

“If there is one sector which can truly ‘Make in India’ -- it is the media and entertain-ment sector. We have the capacity, capabil-ity, wherewithal, competitive instinctiveness (compared to anywhere in the world) to make in India and show the world,” he said.

Sudhanshu VatsChairman, CII National Committee on Media & Entertainment and Group CEO, Viacom 18 Media Pvt. Ltd

According to mr. sudhanshu Vats, convergence in the new media sector is about three key constituents -- content creation, content platforms and communities


Need for ChangeScaling up the volume of content,

more FDI flow into the M&E sector, infrastructure develop-

ment, robust business models, better pricing of content, clarity on the policy environment and disruptive ideas were some of the key issues highlighted by Mr. Sanjay Gupta, COO, STAR India, at the CII-Big Picture Summit 2015.

“In the past 15 years, the M&E sector has barely seen any new entrant and only around $4 billion FDI. To achieve $100 billion growth, the industry needs to invest at least $50 billion over the next decade,” Mr. Gupta said.

He said the M&E industry has been growing at an impressive rate of 12% on an year-on-year basis, as he high-lighted the potential of various media verticals to grow at a much faster rate.

He said sports is a $2 billion industry that could easily grow to around $10 billion in the next five years. “Be it Hockey, Football, Kabaddi or Badmin-ton, the new sporting leagues are being lapped up by the audiences,” he said.

But “one needs to scale up the volume of content”, Mr. Gupta added.

Speaking about challenges of infra-structure development, the STAR India COO said: “Although Punjab and Haryana contribute large numbers of Kabaddi players, one cannot add more teams based in either of these two states because they do not have a single indoor stadium that could host a Kabaddi match.”

“In Mumbai, the game is hosted at the NSCI Dome, but the biggest con-straint is the availability of this facility for a reasonably long period of time,” he pointed out.

He stressed on the need for India to have more movie screens. “With around 8,000 screens, India has one of the world’s lowest screen densi-ties,” he pointed out.

Highlighting the challenges faced by news channels in the country, Mr. Gupta said they needed a “robust busi-ness model”. “None of the channels make any money because none earn any money from subscription. Glob-ally, subscription contributes as much as 60-70% of the total earnings of a news channel,” he said.

Television distribution is roughly a third of the total value of the media industry, Mr. Gupta said. “Since the sector is con-sidered a basic need from a consumer viewpoint, the prices at which content is sold by creators to platforms is regu-lated – prices frozen in 2003 haven’t changed in the past 12 years. In the same 12-year period, even the price of milk has jumped from Rs12-15 a litre to Rs35-40 a litre!”

He also highlighted the need for the M&E sector to have a sustainable business model. The STAR India COO said that high entertainment tax be brought down to enhance growth.

Mr Gupta asserted that there is an urgent need to make distribution profitable, position animation as the next wave of export-oriented growth, support a serious scale-up of exhibi-tion screens and sports stadiums and allow content innovation in radio.

The STAR India COO called for a clar-ity on the policy issue so as to attract domestic and international investors. The M& E sector needs brave new entrepreneurs, disruptive ideas and un-conventional business models, he said.

Sanjay GuptaCOO, Star India

the stAr India Coo called for a clarity on the policy issue so as to attract domestic and international investors


Voices for Change

Session on Enabling Policy Framework for Indian M & E

The M&E leaders came together for the CII-Big Picture Summit to highlight various regulatory and policy issues being faced by the industry so as to help bring about positive changes to reach the ambitious growth target of $100 billion


I’m all for timely implementation of policies, but not at the cost of well-thought formulation of policies. Given the frantic pace at which our sector is evolving, several mar-ket players find them-selves behind major tech-driven changes. It is only natural that policy will take even longer to evolve. What I’d like to see is a sac-rosanct roadmap of how we can move to-wards a future-ready, light-touch regulatory framework that is cog-nizant of the converged reality we operate in.

Sudhanshu Vats Chairman, CII National Committee on Media & Entertainment and Group CEOViacom 18 Media Pvt. Ltd.

We are in huge short supply when it comes to talented people. I don’t think there is a dearth of talent in India. We need more NIDs in India. The (na-tional) policy, should have a provision for developing infrastruc-ture to get the right talent from across India. Communication should be made a part of skills development to train and skill talent for content creation.

Piyush PandeyExecutive Chairman and Creative Director, Ogilvy & Mather - India and South Asia

With Tata Sky catering to 10 million DTH cus-tomers out of a total of 60 million, can the re-newal of DTH licensing be questioned? Should it not be an automatic renewal? We have been part of the digitization revo-lution for the last 10 years. If our working environment is made ready for the 21st cen-tury it would help us reach our dream of $100 billion faster.

Harit NagpalCEO, Tata Sky

We need liberal regu-lator to run the indus-try. We are always at loggerheads with regulator on post facto issues. If we have to realise our dream to-wards $100 billion for the Media and Enter-tainment industry, may be we need an inde-pendent regulator for the entire industry and not just a division of TRAI.

Punit GoenkaManaging Director & CEO, Zee Entertainment

We don’t need regula-tion and we don’t want to talk about regula-tion. Self-regulation is working well for us. The three changes that we need for the print industry are: We need to revisit the repealing Wage Board; the gov-ernment should have a formula based on inflation for revision of DAVP rates; and print industry should not be negatively impacted by GST.

Raj JainCEO, Bennett Coleman & Co

We need a public broadcaster for kids in India. It should be a digital terrestrial free-to-air channel. That’s when it will give a boost to content cre-ation. The Children’s Film Society of India (CFSI), which has pro-duced over 240 chil-dren’s films, can act as a de-facto producer of DD Kids contents by partnering with the local producers. There should be original con-tent creation fund for CFSI to encourage production in India.

Ashish KulkarniFounder & CEO, Punnaryug Artvision Pvt Ltd.


It is important that if journalism has to survive in India, it has to be fiercely in-dependent. We have a public broadcaster, but doubts are raised (from time to time) on how independent it is. We find it dishearten-ing when we get show-cause notices for ques-tioning Supreme Court judgments, whereas a newspaper escapes such notices. TV news channels are also threatened. We should have a broadcast com-mission -- a panel of eminent citizens headed by a former Supreme Court judge.

Sonia SinghEditorial Director, NDTV Group

The government has taken many initiatives for providing an en-abling environment for the growth of the me-dia and entertainment sector. We are soon go-ing to have discussion with the industry to concretise new ideas and take up the larger issues facing the in-dustry.

J S MathurSpecial Secretary, Ministry of Information & Broadcasting

The government has done a fabulous job on Phase III FM radio auctions. We have vari-ous caps on radio... All we need is an enabling environment. We are tied to AIR News on FM radio. I argue for opening up of sports on FM radio. FDI for radio entertainment also needs to be raised from the current 26 percent. A long term policy on spectrum al-location, a digital radio policy and AM radio privatisation are some other issues that need careful consideration.

Tarun KatialCEO, Reliance Broadcast Network Ltd.

Policy regulation helps in channelizing the en-ergy of all stakeholders towards one direction. Stakeholders also in-clude consumers. The regulator is focusing on protection of the con-sumer interest as well ensuring the growth of the industry. One step in that direction is digi-tization and increasing the reach of FM radio. Industry should come out with suggestions. We never get to know much about what’s to come three or five years’ down the line. The light touch regula-tion is the stated policy of Indian regulator.

Sunil SinghalAdvisor, Telecom Regulatory Authority of India (TRAI)

Today, content cre-ators are seeing only 5-7% monetisation on digital platforms. In the next two to three years, digital consump-tion is set to increase. (But) Support and en-dorsement is sought from the Ministry of Information & Broad-casting and TRAI to block access to 200 odd pirate sites. If we are able to do this, we will start monetisation. Telecom players will benefit as they are be-ginning to create lay-ers for entertainment services.

Neeraj RoyMD & CEO, Hungama Digital Media Entertainment Pvt. Ltd.

We have to cater to the local markets in the country. We have to cater to over 50 crore people in India who do not have TV at home. This would take the Indian M&E industry towards $100 billion. All ad agencies are in big cities. We have to have a broadcast mod-el which is scalable to a particular geographi-cal area.

Rajeev SinghMember (Finance), Prasar Bharti


CII-BCG Vision for 2020 production hub and encourage higher investment in the M&E sector – from global and domestic players,” said Neeraj Aggar-wal, MD, the Boston Consulting Group-India.

Linear value chains of the past will collapse, accommodating new roles and new players. “This evolving ecosystem will create new winners and these winners will do three things differently,” con-tended John Rose, Senior Partner at the Boston Consulting Group.

“They will think big, leverage multiple monetization models – add-ing up dimes to create dollars and invest heavily in content – for content will continue to be king.”

Mr Sudhanshu Vats, Chairman, CII National Committee on En-tertainment and Viacom 18 Group CEO, said, “Ours is an industry that is perpetually on the cusp of disruption. Dealing with these forces of disruption has become a habit for most of us. That said, we often suffer from ‘tunnel vision’ and tend to focus solely on the sectors we play in. I would like to congratulate BCG and CII for providing us with a systemic view of our business without com-promising on the nuances of each sub-sector.

“The macro lens taken by them has revealed cross cutting themes that are insightful for the reader irrespective of whether she works for a print, TV, radio or digital platform. A couple of years ago, many trade pundits commented on how the perfect storm had engulfed our sector.

“Today, I’d like to believe that we‘ve entered the ‘perfect spring’. As a whole, we have grown in scale with a total size of Rs 1,15,500 crores, employing over 5 million people and contributing ~1.7% of our nation’s GDP (Gross Domestic Product). Hopefully, a bumper harvest isn’t too far away,” he said.

The Indian Media & Entertainment (M&E) industry has the potential to reach $100 billion by 2025

(including distribution revenues from broadband) by 2025. This would imply a growth of Rs. 210,000-250,000 crore by 2020. Such robust growth can come only on the back of enabling infrastruc-ture and the support of the government and the industry itself.

With a growth potential of 13-16% YOY the industry has the potential to emerge as one of the largest employment provid-ers, contributing significantly to the Gross Domestic Product (GDP), according to a report -- ‘Vision 2020 Document on Media & Entertainment Sector’ -- prepared by the The Boston Consulting Group .

“At the core of this optimism is the fact that the underlying Indian consumer trend is positive,” Kanchan Samtani, Partner & Director at The Boston Con-sulting Group, was quoted as saying in the report.

“Unlike mature Western markets, digital media could expand the overall market size by tapping into latent demand and

driving new media consumption rather than merely replacing other, more tradi-tional platforms,” she added.

The significance of India’s M&E sec-tor cannot be stated enough. It has the world’s third largest television viewership base after the US and China, the world’s second largest print industry in terms of circulation, and produces the highest number of films worldwide (1,900+ films per annum), the report said.

“The next decade, however, will be the decade of change. We see the interplay of five forces creating a tectonic shift which can potentially catapult the industry into the next orbit of growth. India is gearing for a consumption explosion.”

New consumption behaviors will get created with always-on, on-the-go, on-demand and seamless pick-where-you-left models across multiple devices and time frames. The distinction between prime and non-prime time will become redundant due to these changing pat-terns and behaviors of online consump-tion, the report said.

It will also create fragmented audi-ences. With the ever-increasing choice of content and the popularity of time-shifted and on-demand viewing, mea-suring viewer behavior will become increasingly critical as it will facilitate targeted advertising. Further, there is a fast growing need for innovative and newer ad formats for effective moneti-zation, it stressed.

The report was discussed threadbare at the 4th edition of the CII Big Picture Summit held on 19-20 October 2015 in New Delhi.

At the same time the next decade could also provide India the opportu-nity to emerge as a global M&E hub. Opportunities, content and players are all becoming universal, and India — backed by a stable macroeconomic outlook, a youthful, English speaking workforce and the government’s “Make in India” and “Digital India” blueprints—is strongly positioned to exploit such trends, the vision document said.

“To advance industry growth, India needs to establish itself as a global

Unlike mature Western markets, digital media could expand the overall market size by tap-ping into latent demand and driving new media consumption rather than merely replacing other, more traditional platforms

Linear value chains of the past will collapse, ac-commodating new roles and new players. This evolving ecosystem will create new winners

Kanchan SamtaniPartner and Director, BCG – India

John RoseSenior Media Partner, BCG- USA

Release of CII-BCG Vision 2020 Report Session on presentation of Vision 2020 Report


Breaking New Paths

The Indian Media & Entertainment sector has to look for new ways to engage and partner within

and outside the industry and embrace disruption to achieve the $100 billion growth target by 2025, said industry leaders, as they deliberated on the CII-Big Picture Summit theme -- ‘How do we achieve the target of USD 100 Billion?’ -- at the event’s fourth edition.

Participating in the discussion were industry veteran Mr Amit Khanna, Mr Anuj Gandhi, Group CEO-India Cast, Mr Biren Ghose, Country Head-Technicolor India, Mr R Sukumar, Editor-Mint, Mr Neeraj Agarwal, MD-BCG India and Mr Achint Setia, Head-Corporate Strategy and Business Development, Viacom 18 Media Pvt Ltd.

“In the beginning (during the first edi-tion of CII Big Picture Summit in 2012) many people scoffed at it (the $100

billion goal). But I am optimist who believes that once you set a goal you try to achieve it,” said Mr Khanna.

“We are not ready to face the future. It doesn’t wait for anyone. It comes with a cataclysmic speed,” Khanna warned as he elaborated on the changing dynam-ics of the media industry.

“Linear broadcast will die in 10 years. OTT and other access devices are being talked about a lot. In two years’ time there will be interoperability of formats and standards,” he said.

Stressing on adopting innovative methods for speed, Mr Setia said that partnership, measurement and skills development were among key areas that the M&E industry should embrace to achieve the goal of $100 billion.

“In the new world, the consumer expe-rience and convenience have become

differentiators in order to monetize any form of service.

“It will be difficult for the media sector alone to serve the consumers as we do not know how they will experience five years from now,” Setia said.

Mr Ghose said that 50 percent of the M&E content has been coming from emerging markets. “We need to create in-dustrial scale infrastructure and skill sets and embrace new technology to trans-form the Indian M&E sector,” he added.

Mr Sukumar said there were huge op-portunities for entertainment sector in gaming and services space.

On the challenge faced by distributors, Mr Gandhi said the biggest challenge for distribution in India is how to make consumers to begin to pay for what they consume. “It is most crucial and challenging,” he said.

Curation and customization is very critical for survival. The next generation internet is about customization and cu-ration. The future belongs to personalized segmentation. Five years from now, newspa-pers should be able to cus-tomize news on demand.

Amit KhannaMedia Industry Veteran

I see a great opportunity in reaching out to South Asians who have become more main-stream. In India, we should look beyond distribution. Local advertising has huge potential. We should create avenues, say for example for a local restaurant in Ranchi.

Anuj GandhiGroup CEO, India Cast

We are living in a new world today, where Uber taxi ride can be booked through zo-mato app. We need to have partnerships across indus-tries and value chains. We need to bring the payment guys, infrastructure providers and travel people together.

Achint SetiaHead, Corporate Strategy and Business Development, Viacom 18 Media Pvt Ltd

The avenues for the M&E in-dustry to grow its canvas are truly mind blowing. There is unique consumer opportunity and consumer need, advertis-ing need and global need. If we bring these together, we can chart this industry to the path forward.

Neeraj AgarwalMD, BCG India

We need to use technology to reduce labour cost and increase productivity. That is quite far away for any of the spaces we have in the media and entertainment sector. This is very crucial for India.

Biren GhoseCountry Head, Technicolor India

I don’t think we have an equivalent of BPO industry in the entertainment space. It is a huge opportunity. Many people have said they are going to do it but no one has done it so far.

R SukumarEditor, Mint

Session on How do we achieve the target of USD 100 Billion?


Change is in the airA panel of young viewers in their 20s made

it clear at the CII Big Picture Summit that they don’t watch traditional linear

TV anymore and are fixated to watch content on demand online or what they want to watch.

They were sharing insights into the content they watch online at an interactive session entitled “Multi-Screen Content Consumption – Young Minds”. The interaction underscored a clear emerg-ing trend that big general entertainment channels are losing young audience to the Internet.

The youngsters made it clear that they don’t read newspapers; watch prime time general entertain-ment soaps; and many of them do not watch con-tent sourced from US TV networks as they get edited version on television. They are hooked to Apple TV, OTT platforms, Whatsapp, Instagram, Snapchat among others.

“I have neither watched TV nor read newspapers for two years. I watch everything online as it is at my disposal,” said Ms. Meghna Nijhawan, Head, Content, Vixtee, NDTV Convergence. Meghna prefers to watch AIB on Internet or IIFA behind the screens on an App.

“We are watching what Americans are watching in-stantly,” said Vishwajoy Mukherjee, Director of web series Baked, which has 4.5 million online viewers. Viswajoy admitted that financing is a major issue and they did not take Baked to traditional broad-casters and sold Baked to ScoopWhoop.

“We are an on demand generation. TV prime time is 8 PM to 12 PM. Our prime time is all the time. We are constantly connected and committed to the device we use,” said Mr Rajneil Kamath, Pub-lic Policy and Government Affairs Analyst, Google India. “It is not that we don’t watch content on big screen. We don’t get what we want to watch. The set-top-box is not intelligent to provide what we want to watch.”

Mr. Raj Nayak, CEO, Colors, said: “This young audience will get a critical mass when the bandwidth issue is resolved.” Also, the content watched by young minds will not take off unless there is revenue monetization or ads.

Session on Multi-Screen Content Consumption – Young Minds


Session on The Future of Digital Media

Original Content to Drive MediaOriginal content and curation will continue to play a

major role in digital media and news consumption in the emerging world where there is an explosion of content

and dialogue in the mobile environment, said experts at the CII-Big Picture Summit.

They observed a clear emerging trend that news and informa-tion will be consumed on mobility in the coming time.

Social media companies are technology companies who have become intelligent distributors. “They are emerging as distribu-tion partners for original content,” said Mr. Raghav Bahl, Founder & former MD, Network 18 and founder, The Quint.

“It is intelligent content that is doing well. I continue to learn everyday. People who teach me are twenty something. This is a medium of young people. Listen to them,” said Bahl.

Mr. John Rose, Senior Media Partner, BCG-USA and Ms. Kaveree Bamzai, Editor–at-large, India Today participated in the panel discussion.

Notes from raghav Bahl

• The debate for and against digital is over. Everything is digital. The important thing is are we going to consume content in a static device or a mobile device; Is it going to be consumed real time (linear) or on demand/time shift (non linear).

• As far as news and information is concerned, the jury is over. Most of it is going to move to handheld devices. Films (large format content) will continue to have a sig-nificant presence on a static screen because large format experience is a community experience.

• Social media which was once thought as a threat to content consumption is now a partner and acquiring the shape of the distributor. As Google, Facebook, Amazon, Apple form a news and information small format ecosys-tem, I believe they become partners for us.

• It is intelligent content that is doing well in digital. I have seen some of the most serious, intelligent pieces, arguments, perspectives, editorials in digital media. The consumer wants original content and original take on things. All the principles of information dissemination and journalism which we held high in linear world are more relevant and important today.


Session on How Social Media is enriching the Media & Entertainment Industry?

The session on the influence of social media brought out a clear message that it will not only influence what we think, but will also shape consumer behaviour not only in news domain but across categories.“I have always believed that Facebook is for voyeurism, Twitter is for information and YouTube for engagement,” said Mr. Suhel Seth, Managing Partner, Counselage India & Founder, Equus.“Social media is critical to India from the point of view of bringing stories across India which otherwise may not enter newsrooms. But my concern is social media don’t have editorial filters,” said Mr. Rajdeep Sardesai, Consult-ing Editor, India Today Group.Mr. Satya Raghavan, Head, YouTube India and Mr. Viral Jani, Head-TV Partnership, Twitter India were also part of the panel discussion -- “How Social Media is enriching the Media & Entertainment Industry.”

sociAl MediA to shApe consuMer behAviour


GST to be a Game Changer

The rolling out of Goods and Ser-vices Tax (GST) would be a game changer for the media and enter-

tainment (M&E) industry, said Ms.Rashmi Verma, Special secretary-Revenue, Ministry of Finance, Government of India, at the CII Big Picture Summit-2015.

“Multiplicity of tax will go in one stroke. Entertainment, services and goods tax both at the center and states will be built into one -- making compliance hassle free,” Ms. Verma said.

However, she added that entertain-ment tax levied by local bodies like panchayats and municipalities would remain the same. But the share of such taxes to the total tax collected would be insignificant.

Close to 99 percent of the taxes levied under the center and state dispensations would be merged with GST, she added.

Speaking about complications arising from the proposed GST for M&E seg-

ments like advertisements, Ms. Verma said: “The consumer and industry need not have to worry about the apportion-ing of the tax proceeds since it is under the purview of center and states.”

She also allayed concerns of the indus-try that clarity was lacking in defining differences between goods and services and tangible and intangible goods.

Referring to the one percent additional tax to be levied during the two year transitional period of GST, she said such tax was mainly for the manufacturing sector and the services would be kept out of it.

Ms. Verma assured the industry would be consulted before any decisions were taken.

She urged the industry leaders to give their inputs in the drafting process.

“A model legislation will be put in public domain by the third week of November

this year and regional workshops would be held at important cities to elicit the views of the industry associations at the apex and state levels,” she said.

The dialogue process would be continu-ous and the GST Council to be consti-tuted will take stock of the suggestions from time to time.

Ms. Verma said that there would not be any concessions or incentives under the GST regime. However, she said that the states which are wanting to continue with the fiscal concessions for speci-fied sectors could do so setting apart resources from their own kitty.

Mr. V Krishnan, Member, Service Tax, Ministry of Finance, said the three pil-lars of GST would be rate, technology and legislation. He said the National Institute of Public Finance and Policy (NIPFP) was looking into the possible rate structure which could keep cascad-ing effect to the minimal.

For the GST transitional peri-od, central government should set up a well-equipped secre-tariat. We at CII should sen-sitise every state government to create a secretariat for GST (similar to special courts) to navigate transition to GST. Similarly, companies should have finance/accounts per-sons to navigate with auditors.

A P Parigi, Advisor to the Chairman, Network 18

GST is like a double edged sword for the film industry. When service tax came, every commercial tax officer had his own version of the tax. We do not know the advantages, repercussions and where do we stand. We need a lot of clarity.

Ravi KottarakaraFilm Producer, Director & Distributor and VP, FFI

Copyright and IP are impor-tant for media companies. In the draft rule of GST, copyright has been defined as goods. The moment you classify copyright as goods as opposed to service it be-comes liable to the proped one percent levy.

Farokh Balsara Partner & National Leader-Markets, Ernst & Young

Rashmi Verma Special Secretary, Revenue, Ministry of Finance

It is a crucial time for cable TV industry in India. Seven thousand seven hundred and four towns and cities in India have to be digitised by De-cember 31, 2015. Nobody has any issues with GST. We need to have a clear transitional status worked out.

Ashok MansukhaniWhole Time Director, Hinduja Ventures Ltd.

There should be certainty and enabling tax regime. GST will certainly be better. There should be clarity from the government as there is still room for back door en-try for taxes. The signal that we transmit is considered as goods and VAT is levied on it.

Avnindra MohanPresident, Legal & Regulatory, Zee Network

Session on Taxing times for Indian M & E Industry – is GST the answer?

We are working on the transition roadmap so that the changeover hiccups are minimal. The GST Council will be set up after consti-tutional amendment to look into any concerns raised and take correc-tive actions


Making India Content HubIndia needs a major push to be positioned as a hub for creating content for the global markets and this push will come from the ongoing digital explosion, said experts at the CII-Big Picture Summit.

Ease of doing business and clarity on policy were men-tioned as enablers to increase exports and attract invest-ment.

The success in the future will depend on how effectively we utilize India’s mythology and storytelling and combine it with the latest innovations in technology to catch the imagination of the global audience.

“If we just look at the impact of Peter Brook’s Mahabharat on the global entertainment industry, we get a sense of what we are capable of doing. We have far more believ-able, close to life and larger than life characters that can be etched out of our story culture,” said Mr. Resul Pookutty, Sound Designer & Oscar Award Winner at the CII Big Picture Summit.

“There has never been a better time than now,” said Mr. Ferzad Palia, Executive VP & Business Head, English Cluster, Viacom18. “India can be positioned as a hub for creating content. What we lack is overall branding and we need to build in a whole set of infrastructure.”

At the same time there was on overall agreement from panellists the content created within India has to find a way to reach out and made available within the country.

“An overall national policy on entertainment from the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, is the need of the hour,” said Mr. Uday Singh, Managing Director, Motion Pictures Distribu-tion Act (MPDA).

Mr. Ashish Kulkarni, Founder & CEO, Punnaryug Artvision Pvt Ltd advocated a formation of Creative Content Com-mission for India.

“We should have a media policy and art policy. It is high time we need to bring all M&E verticals under one um-brella,” said Pookutty.

Mr. Sabbas Joseph, founder, Wizcraft World, who champi-oned the export of Indian film content through IIFA, said: “We have to collectively position ourselves as a creative industry of India.” “Together, the Indian M&E sector can be more powerful than many governments. We need to showcase India effectively.”

Session on Increasing exports and attracting investments in M&E Services


Session on Disruptive new business models for video, music & ad technology

The digital media space is being redefined by disruptions through technology and new business models. New business models for video, music & ad technology are trending in digital media space as a result of disruption in content creation, content consumption and content distribution

disruptive ecosysteM


Tackling Regional Divide

Films produced at regional centres in the country should be able to overcome various barriers to

reach out to viewers across India, said experts at a session dedicated to the regional cinema in the country.

The session was moderated by Ms. Shubhra Gupta, Film Critic and Colum-nist, the Indian Express and the panel-lists included Mr. Shiladitya Bora, CEO, Drishyam Films, Ms. Bobeeta Sharma, Chairperson, Assam State Film Finance & Development Corporation, Mr. Ashoke Viswanathan, Film-maker from Kolkata and Mr. P Sheshadri, Filmmaker from Karnataka.

“As audience we need to stand up and get counted to watch films produced from all parts of India,” said Ms. Gupta. She also made it clear that the Indian Cinema does not mean only “Bollywood”.

Filmmakers from Karnataka and Assam said they don’t even find good slots to

release their films within their state leave alone across the country. Many regional films get slots at 9 AM or 11 PM in multiplexes, rued filmmakers.

UFO’s Scrabble and Real Image’s Qube also came under criticism for their mo-nopoly as digital cinema intermediaries. Filmmakers called for a clear policy to restrict their monopoly.

“Films produced from regional cinema is the future,” observed Viswanthan, a filmmaker from Kolkata. “Regional films should have access across India.”

He added that films from regional cinema portray the turbulent times. It is the cin-ema of dissent and the cinema that needs attention and is already going global. “Ours is a truly plural nation and regional cinema should be nurtured to be viewed everywhere,” said Viswanathan.

“We have been struggling to find a place. We are supported by Assam gov-ernment and we need platform for our

content,” said Ms. Bobeeta Sharma as she gave her perspective on Assamese cinema. Assam has a total of 60 single screen theatres and five multiplex screens.

Ms. Sharma said the national broad-caster Doordarshan should revive the regional cinema slot in addition to screening Indian Panorama and Na-tional Award Winning Films.

Mr. Sheshadri said that Chennai has a population of 25 lakh Kannadigas and Mumbai has 15 lakh Kannadigas but still Kannada films don’t get theatres in these cities.

“The time has come for regional film-makers to work like entrepreneurs to release films in multiplexes and theatres,” said Mr. Bora. “They should go beyond making their films.”

The rise of Marathi and Gujarati films was also acknowledged during this panel discussion.

Session on FUTURE SHOTS – from Regional Cinema

Sharmila TagoreVeteran Actress

cii FelicitAtes Ms shArMilA tAgore

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Presentations & Public Speaking

CII Big Picture Summit 2015 Retrospective