Entertainment industry needs synergy with government
The recently-concluded international conference on the entertainment industry organised by the FICCI Entertainment Committee superbly highlighted the fact that the business of entertainment has now come to occupy centre stage in the corridor of global business. The FICCI Entertainment Committee should be lauded for showcasing the potential of Indian entertainment industry and bringing all its requirements under one umbrella with the objective of addressing diverse problems.

In India, the roots of entertainment can be traced back to folk theatre, musical stage shows performed across villages and small towns. Till recently, commercial films were the only recognised form of organised entertainment, but today with satellite television, events, live shows, radio, Internet, music, bands etc., the world has become one large stage.

In the last decade, the entertainment industry has witnessed tremendous growth. It is now valued at Rs. 15,400 crore and is expected to grow to approximately Rs. 60,000-70,000 crore by 2007.

Looking at the television industry itself, there is a major growth that is envisaged by the content providers in terms of 70 per cent growth in programming hours and a two fold increase in revenues from Rs. 1,200 crore to Rs. 3,000 crore in three years. Hence, the television industry is already looking at major investments in quality programming, hardware and studio infrastructure. This is evident from the fact that television companies are going public, seeking to achieve the moolah required for such huge investments.

Simply because after this boom, there will be shakeout and the small players will be nowhere.

The FICCI Entertainment Committee and Arthur Anderson have got together to create a report on the strategy diversion of the industry. The reforms suggested by the report, if brought to the attention of the government, could help in extending the sops and facilities enjoyed by the IT industry. Since the entertainment industry and the IT industry are bound to synergise and converge in the future, it makes sense for both industries to be pampered equally. Fortunately, recognising the importance of the entertainment industry, the budget seems to have allowed reasonable concession to this segment.

The bottomline is that what the industry desires is a level playing field with other intellectual property/technology-driven industries. The entertainment industry has progressed so far without too much of government incentive and support. But looking at the avenues opening up, if the industry has to realise its full potential now, there is a need for tremendous change in the legal and procedural environment.

The broadcasting industry has now become more organised through the Indian Broadcasting Association (IBA), there is a sudden increase is the number of channels with 25 more awaiting FIPB approval, besides the reorganisation of the existing channels, and with this, a market for exporting television software has also opened up new avenues. This has come in especially after concessions under Sec. 80-HHF of the Income Tax Act. In a matter of two years, this export figures are expected to triple as well, simply because major production house seem to know the magic mantra of successful programming — multi-market-language-genre products.

With the change in the formula for successful entertainment, the advertisers’ lookout seems to have changed too. Today, no channel can be monopolistic. It is the quality of programming that interests and attracts revenue.
The entertainment industry today, naturally hopes for synergy with the government in helping it realise its potential, and in the process becoming a dominant player in the economy.

Ram Mirchandani
Programming Head, Modi Entertainment