India: Idiot box outshines 70-MM screens ...

By Priyanka Khanna, Indo-Asian News Service

New Delhi, Jan

21 (IANS) The television industry, once considered the poor cousin of

the glitzy world of cinema, is increasingly reshaping entertainment in

India with even the high and mighty of the Hindi filmdom succumbing to

its charms.

Bollywood superstar Shah Rukh Khan's return to the small screen in

STAR Plus' quiz show "Kaun Banega Crorepati-3", actress Shilpa Shetty

living her life out on Britain's reality show "Celebrity Big Brother"

and film director Karan Johar's decision to restart his chat show

"Koffee with Karan" are all indications that the small screen is very

big now.

According to industry watchers, the television industry posted

better financial figures than film trade in India for the first time in

the year 2004. Since then it has also come out of the overpowering

shadow of the big silver screen, especially in terms of people's

perceptions.

The soap operas have become mini films and award shows have become

red carpet events. The day is not far when credits of daily soap operas

will include names of film writers, choreographers, music composers, et

all.

According to Anil Wanvari, chief of Indiantelevision.com, the

television industry brings in twice the mullah raked in by the much

older and well-known film industry.

In fact, a study by management consulting firm KPMG says the so-

called Tellywood had gained at the expense of Bollywood.

The study points out that in the year when Bollywood had a series of

flops and the revenue fell from Rs.45 billion in 2001 to Rs.39 billion

in 2002, the total revenue generated from subscriptions from television

business shot up to Rs.60 billion from Rs.40 billion in 2001 - a growth

of 50 percent.

Of this, broadcasters realised Rs.8.4 billion - more than double the

previous year's figure of Rs.4 billion.

KPMG's stocktaking report on the status of the Indian entertainment

industry used the term 'degrowth' to describe the film industry but

said television business has more than made up for the losses of the

filmdom.

Latest figures say the media and entertainment industry of India has

ample space for all media to grow.

A study by the Federation of Indian Chambers of Commerce and

Industry (FICCI) and PricewaterhouseCoopers says the entertainment

industry is expected to grow at 19 percent compound annual growth rate

to reach Rs.837.4 billion by 2010 from Rs.353 billion at present.

Advertising spends - at 0.34 percent of the GDP - are low in

comparison to other developed and developing countries, where the

average is around 0.98 percent.

"Advertising revenues are vital for the growth of this industry.

While the low ad spends may seem like a challenge before the E&M

(Entertainment & Media) industry, they also throw open immense

potential for growth," the report said.

If India was to reach the global average, advertising revenues would

at least double from the current level of around Rs.132 billion.

According to the study, the television industry is poised to grow at

24 percent to Rs.427 billion from its current size of Rs.148

billion.

"Subscription revenues would be the key growth driver for the

industry over the next five years. Subscription revenues will increase

both from the number of pay TV homes as well as increased subscription

rates," the study said.

New distribution platforms such as DTH and IPTV (Internet Protocol

Television) will help increase the subscriber base and push up

subscription revenues.

The film industry, however, is slated to grow at 18 percent to

Rs.153 billion in 2010 from the current size of Rs.68 billion.

"Advancement in mobile technology, better broadband access and

Internet Protocol (IP) will be the enablers that will evolve a new

breed of consumers, as opportunities for them to access and manipulate

content and services will be overflowing, while their time and

attention will be limited," the study said.

According to the study, convergence will play a crucial role in the

development of the Indian entertainment and media industry where

consumers will increasingly be calling the shots in a converged media

world.

And film stars have shown the way by climbing down from their high

horse and embracing the television world.

-*-

Radio is the next frontier for Bollywood stars. It has become

commonplace for actors to appear on radio for promoting their films and

many are no longer shying away from hosting small segments as well.

Madhuri Dixit has, in fact, opted to give radio interviews over the

print media to get back into the public reckoning.

The radio industry is poised for big growth with projected size for

2010 at Rs.12 billion from the current level of Rs.3 billion.

Key policy initiatives announced by the government such as migration

to a revenue share regime, allowing foreign investment into the segment

and opening of licenses to private players are expected to drive growth

in this sector.

-*-

The one entertainment sector that is in need for some fresh impetus

is the live entertainment segment. Mallika Sherawat did try to spice up

the proceedings of a live performance show but ended up with a case

against her.

Issues like high entertainment taxes in certain states, lack of

world-class infrastructure and the unorganised nature of most event

management companies continue to hinder growth of this industry.

Maybe a toned down Mallika would do the trick.