The liberalization efforts by the Indian administration have led to the emergence of several sectors, which offer great opportunities for India's development. One particular recent sector was interactive marketing and entertainment, along with information and communication solutions (ICTs). The entertainment and interactive marketing industry in India has been making headlines of late, not so much for its effect on the domestic market, but as a premier outsourcing vacation spot for american entertainment companies. This was paper examines the expansion and development of the interactive press and entertainment industry in India. It talks about India's position and India's advantages in the global entertainment industry, the troubles that India faces in this was industry, the road in advance, and opportunities for international collaboration in this was sector.
The global film and entertainment industry was growing fast. The Entertainment Council of Philippines estimates that the revenues from entertainment industry worldwide have been growing each year at 20% to 30% within the last few years. Regarding to India's National Connection of Software and Services Companies (NASSCM), revenues from the global entertainment industry will total US$50-US$70 billion by end-2005. Today, entertainment products are increasingly used in films, TV programmes, commercials, game titles and online education. Pursuing Walt DISNEY 1988 development Who Framed Roger Rabbit, worldwide desire for entertainment feature videos has been bringing up. Four major entertainment movies released in 2004 accumulated record revenues. Children's channels across the world have observed their numbers rising ever so speedily within the last few years. Entertainment products also have applications in the medical, structures, and legal fields. 1 the global non-entertainment entertainment industry, including work in methodical and medical entertainment, now makes up about revenues well worth $15 billion.
ENTERTAINMENT INDUSTRY
The Entertainment Industry in India though a later starter, was considered as one of the most effective growing sections of the entertainment and advertising industry. The Entertainment Industry in India gained value as an outsourced destination for entertainment work due to low priced, skilled labour as its many advantages. Recently Indian entertainment companies and entertainment studios have been upgrading the value chain to set-up their own intellectual property privileges with Hanuman, Roadside Romeo, etc. and partnering with international studios to create animated properties for the global audience. Though a majority of the task done by the entertainment industry in India was outsourced work, this was was expected to change in the foreseeable future with an increase of demand from the local entertainment industry. This is industry can be categorized into four different components: Entertainment, education, content development and media/web design. The entertainment market in India was relatively new in comparison to some other Parts of asia. Nonetheless it was one of the fastest-growing in the Indian entertainment sector. With approximately 200 entertainment studios, India has emerged as a worldwide outsourcing hub for entertainment technology services. The key motorists for the entertainment industry are the increasing home demand for entertainment movies and the increase in entertainment studios and training centers across the country.
MEANING OF PESTLE ANALYSIS
P-Political
E-Economical
S-Social
T-Technological
L-Legal
E-Environmental
Political factors are how and also to what level a federal government intervenes throughout the market. Specifically, political factors include areas such as tax policy, labour legislation, environmental rules, trade constraints, tariffs, and politics stability. Politics factors could also include goods and services that your government wishes to provide or be provided (merit goods) and the ones that the federal government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great impact on medical, education, and infrastructure of the nation.
Economical factors include economical growth, interest levels, exchange rates and the inflation rate. These factors have major effects on how businesses operate and make decisions. For instance, interest rates have an effect on a firm's cost of capital and therefore to what magnitude a business expands and expands. Exchange rates affect the costs of exporting goods and the resource and price of brought in goods within an economy
Social factors include the cultural aspects you need to include health consciousness, people growth rate, time distribution, career attitudes and emphasis on safety. Developments in cultural factors affect the demand for a company's products and how that company performs. For instance, an ageing population may imply a smaller and less-willing labor force (thus increasing the cost of labour). Furthermore, companies may change various management strategies to adapt to these social movements (such as recruiting aged staff).
Technological factors include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technical change. They are able to determine obstacles to entry, least efficient development level and influence outsourcing decisions. Furthermore, technical shifts make a difference costs, quality, and business lead to innovation.
Legal factors include discrimination regulation, consumer legislation, antitrust law, occupation law, and health insurance and safety legislations. These factors can affect how a company runs, its costs, and the demand because of its products. Consumer safety laws are made to ensure reasonable competition and the free stream of truthful information in the marketplace. These factors make a difference what sort of company functions, its costs, and the demand for its products.
Environmental factors include weather, climate, and climate change, which might especially affect companies such as tourism, farming, and insurance. Furthermore, growing awareness to local climate change was impacting how companies operate and the merchandise they offer--it was both creating new marketplaces and diminishing or destroying existing ones.
POLITICAL Evaluation OF ENTERTAINMENT INDUSTRY
Government Support
Mr. Kapil Sibal, Minister of Express for Knowledge and Technology, identified entertainment industry as one of the important sector for India's export oriented progress. 10 However, compared to governments in other countries; attempts by the Indian federal to encourage the sector have been very nominal. The federal government of South Korea funds entertainment ventures over a relationship baswas. 11 Bangladesh has a global Bank-funded support programme for the entertainment industry. In contrast, there have never been many initiatives from the Indian government to promote the entertainment industry, at least till the past twelve months.
The Indian federal government signed co-production treaty with France about twenty years ago and initiatives are to reactivate it. A treaty was authorized with the Italian administration, which in turn directed a delegation to Goa. Work are also on to sign similar agreements with Britain, Japan, Brazil, Canada, Netherlands and China. These treaties will lead to showing of costs by partner nations and also the dispersion of technical know-how amongst the partner nations.
New Administration Initiatives
A 25-acre Special Export Zone (SEZ) was going to be designed in the outskirts of Thiruvananthapuram only for the entertainment industry. The business ministry was thought to have approved the creation of the SEZ within the Film and Video Park (FV Area) set up by the Kerala Industrial Infrastructure Development Corporation near Thiruvananthapuram. The state was said to have created a 15, 000 sq meters entertainment service to welcome entertainment houses to build their bases. The FV Recreation area made a good start when the Chennai-based Prasad Labs has made it its bottom part to process all Malayalam movies for another two years. Kerala has been making attempts at convergence in the areas of information technology and movie theater. The Entertainment Development Relationship of India recently suggested to the info and Broadcasting Ministry of India that TV channels must be sure 10% booking for local animated content. The federal government can further encourage investments and contribution in this sector by giving tax benefits. It provides grants or loans to Indian animators for participation in international meeting and when planning on taking up training programs abroad
2. ECONOMICAL ANALYSIS OF ENTERTAINMENT INDUSTRY
India's elegance as an entertainment hub is based on the presence of English-speaking labor force, high-quality software engineers, a big pool of creative talent, good studios and low costs. The cost of creating a 30-minute 3D entertainment program in India was US$60, 000 compared to US$250, 000-400, 000 in america and Canada. India has an expense advantage set alongside the Philippines, which was another low cost designer of entertainments. The average monthly salary of an entertainment professional in India was US$600 in comparison to US$1, 000-US$1, 200 in the Philippines. The expense of outsourcing 1 hour of entertainment work to India was approximated to be 30% to 40% of the equivalent costs in leading entertainment centres in Korea, Taiwan and the Philippines.
India's advantages in low costs have been exploited by many multinational businesses and production studios. The development of digital entertainment coincided with the liberalization of the Indian market and India offered the great things about lower creation costs, strong creative and technological skills and a huge English speaking populace. This has resulted in the introduction of advanced entertainment studios in several Indian cities, and these studios are collaborating with global entertainment companies.
FACTOR THAT AFFECTING THE ECONOMIC GROWTH OF ENTERTAINMENT INDUSTRY
Lack of Finance
Indian entertainment businesses cannot match their american counterparts in financial durability. It was remarked that state support by means of tax holidays was crucial for success in the entertainment business. Canada, for example, offers major bonuses to its studios for developing entertainment products. However, financial institutions in India have never been much forthcoming in funding assignments in entertainment and interactive mass media. The long gestation period before fruition of assignments discourages potential shareholders. This can be a major hurdle, and it has, in fact, resulted in the stoppage of a few production ventures. For example, Jadooworks had to avoid development of animated epic of Krishna credited to specialized problems and insufficient funding. The firm was supposedly on the verge of individual bankruptcy which has resulted in the retrenchment of about 250 workers. 7 Oddly enough, Jadooworks was the same company which drew appreciation from Thomas Friedman in an article in February 2004 for using traditional artistes and transforming their skills to computerised digital painting - he was arguing that globalisation can have beneficial effect on traditional artwasts. 8
The connection with Jadoo works underlines the actual fact that it was still too ambitious for Indian companies to single-handedly enter entertainment projects. Even a little job in the entertainment industry includes a budget of US$30 million, that was not affordable for Indian businesses.
3. SOCIAL Research OF ENTERTAINMENT INDUSTRY
Entertainment Products for Illiterates
The interactive marketing and entertainment industry in India has a huge domestic market too to tap on. A field-study based mostly research conducted by one of the authors in July-August 2004 on the diffusion of ICTs in India's rural areas offers some interesting results in this regard. 6 The study proved that televsion was an extremely popular medium as a source of information in the Indian countryside, as it combines aesthetic and audio results and was less demanding of the cognitive skills of an individual. Almost 35 % of India's over 1 billion society was illiterate. There was great demand out of this section of Indian populace for an ground breaking medium that aid communication and information showing, while at the same time, being easily accessible to the people via the television. Products of interactive multimedia and entertainment can fill up this demand distance to a sizable extent; they could be great tools for education, entertainment and recognition among illiterates in India's rural and cities.
SOCIAL FACTORS AFFECTING FILM AND ENTERTAINMENT INDUSTRY
The Indian Entertainment industry: Facing the manpower challenge
Despite the impressive development forecasts, the Indian Entertainment and Gambling industry will take into account below two percent of the worldwide market in 2010 2010. Certainly a much larger opportunity is out there beyond what was currently being envisaged and the remains high. India can take part in a far more significant way in the global Entertainment market, provided the united states has built up essential manpower, with the relevant know-how, to gas its growth. Corresponding to experts, India gets the potential to expand its Entertainment industry to around US$ 1 billion by 2010, but will remain restricted to US$ 869 million on account of a looming demand-supply difference in the region of employable human resources.
A similar situation exists in the gaming section as well, which has the potential to attain profits of US$ 732 million by 2010, but was expected to touch only around US$ 424 million by that period, owing to the paucity of skilled manpower.
The occupation figures for the Indian entertainment and video gaming industry during 2006 were the following:
Around 16, 500 professionals were employed by the Indian Entertainment industry during 2006.
This number was forecast to increase at a CAGR of 14-15 percent and surpass 26, 000 by 2010.
There were practically 150 games companies in India, using about 2, 500 people.
This number was forecast to increase at a CAGR of over 50 percent to go beyond 13, 000 by 2010, with the industry revenue forecast to develop almost ten-fold and reach US$ 424 million.
4. TECHNOLOGICAL Research OF ENTERTAINMENT INDUSTRY
While it was true that India's entertainment industry was growing at a amazing pace, the actual fact remains that this growth was basically due to the mushrooming of "studios-for-hire. " In entertainment feature videos, for example, while Indian companies carry out the scientific entertainment work, figure design, and storyboarding are done overseas. India was yet to become successful player in strategy creation, the high value-adding portion of the industry which remains a conserve of western companies. India's benefits of low costs in this industry will be too short-lived, and sooner rather than later, the united states will have to start out developing new solutions.
Skills
The entertainment industry was still young. Indian movie theater was yet to make its make on the global level. The flourishing entertainment outsourcing industry was constantly demanding new skills and fresh infusion of new skill in to the industry. As a result, it was very important that we have a healthy pipeline to provide skill to the industry. Skills required in the entertainment field can be clubbed under two extensive categories, mainly technological skills and tender skills. Programming expertise, analytical capability, and proficiency on the program are basic requirements for technical skills. The amount of professionals signing up for the entertainment industry has been growing at a substance annual development rate (CAGR) of 18. 2 percent and was expected to expand at the same rate. Though India offers the manpower with the requisite expertise, what remains a location of concern was the training imparted to this manpower from the product quality perspective. This has led to mushrooming of multimedia system institutes. That which was interesting was that quite a few reputed organizations attended forward and started a chain of multimedia organizations for two reasons. One, they may use the trained pros for in-house entertainment development and secondly, utilize this education channel for market diversification and penetration. However, companies need to invest considerable time and money in providing these students up to the levels where they start generating revenue for the business.
Need For technological training to employees
"A couple of no academics institutes like Indian Institutes of Technology, Regional Engineering Schools, Polytechnics, etc. , churning out animators by the hundreds. What we have are only fine arts universities which teach the fundamentals however, not the specialized skills required for production, " highlights K. Chandrasekhar, Standard Manager, Advertising Works, and Tata Elxsi. According to him, this is a major downside for the industry in India.
Education in new advertising needs to be embedded in to the mainstream curriculum. Students have to understand they can have a profitable profession as animators, and the governments as well as educational companies have to begin programmes because of their career development. The entertainment sector will advantage greatly giving encouragement to the city of traditional painters as much concerning technically trained experts. In other words, integration of the rural and urban talent will confirm highly beneficial. Also, NASSCOM's Leader Kiran Karnik believes that there is a dependence on an entertainment academy to build a continuous inflow of entertainment professionals on the market. NASSCOM prolonged its help the government for framing the curriculum and also work with the industry players to improve the academic-industry interface.
5. LEGAL ANALYSIS OF ENTERTAINMENT INDUSTRY
Intellectual property
Outsourcers have always been worried about the protection of these intellectual property in India. India was mostly of the countries which have didn't take stern action against its infringement. India needs to bolster its IP coverage and ensure that companies operating in the outsourcing sphere take stringent steps to care for clients' IP rights.
International Cooperation in the Entertainment industry
The Indian authorities was signing co-production treaties with other countries. Professional organisations too are trying to promote the Indian entertainment sector abroad. ASIFA, India, organises film celebrations, conducts workshops and entertainment film tournaments at the international level. Kahani and Entertainment Bridge have showcased their entertainment shows at Cannes Mipcom (a summit where mobile, broadband and interactive professionals from 95 countries connect to broadcasters, suppliers and distributors) in Oct 2005.
X-media Laboratory has been floated to help local, indie digital media providers reach their ideas successfully to the market with assistance from remarkable international new mass media professionals, who act as mentors to the firms and project clubs. The second laboratory presented in Singapore from 17 - 19 November 2005, "Creating Successful VIDEO GAMES", enticed worldwide response. Indian coders have also been invited to connect to eight of the best games people in the world. There was also a plan to execute a laboratory in India next year. 14
According to Mohit Anand, Country Administrator, Microsoft Entertainment and Devices Section, Microsoft India, "Gaming in the last 7-8 years has really come quite a distance but it still has quite a distance going. Critical factors like PC penetration, organised retail, broadband, and video games hardware need to be resolved to help the industry. Those factors are steadily changing and the near future definitely looks bright. India was the youngest country in the world, and the new generation was completely tech savvy. We assume that video gaming was definitely here to stay and develop. "15
What are the opportunities for proposal between India, Singapore and other Southeast Asian countries in the field of interactive mass media and entertainment industry? To begin with, Singapore and Southeast Asia will be an important market for products from India's entertainment industry. Singapore has significant expertise in telecommunication and marketing industry. Harnessing the favourable trade and investment climate provided by the Broad Economic Cooperation Arrangement between the two countries, organizations in Singapore should consider buying India's entertainment and multimedia business. Maya Academy of Advanced Cinematic, a leading player in the Indian entertainment industry, was likely to extend its businesses to Singapore. It was currently working on a task for BBC and in addition has been involved in the video games division.
Entertainment was one of the quickest growing sectors in India-ASEAN relations. The entertainment industry was expected to grow at a mixture annual growth rate of 20 percent from 2002 to 2007. The entertainment industry, with total income of US$3. 6 billion in 2002, was projected to increase up to US$8. 7 billion by 2007. ASEAN was a huge market for Indian motion pictures. There are marvelous cooperation opportunities between India and ASEAN in the area of 3D entertainment, graphics, etc.
The Philippines was, until just lately, an easy growing entertainment industry, abundant with creative talent, and it was a significant vacation spot for outsourcing by entertainment businesses in the United States. However, with climb in costs, the entertainment industry in the Philippines has begun to decline, and Filipino personnel in the industry have been migrating to India and Singapore searching for careers. India, the Philippines, Singapore and even China must realize that there was little to be gained in the entertainment industry over time by competing with one another on costs. Rather, they ought to seek avenues for cooperation, and lead their initiatives at acquiring intellectual property rights in this creative industry.
6. ENVIRONMENTAL ANALYSIS OF ENTERTAINMENT INDUSTRY
Ability to scale operations. Indian firms are facing a expertise shortage which affects their capability to range up their operations based on customer demands. This also affects the client's self-assurance in off shoring large chunks of work. Though Indian companies have put in place huge expansion programs, they are often marred by various reasons. Tie-ups with educational institutes are supporting overcome thwas difficulty.
Opportunities in Collaborations
Indian companies are trying to improve quality and making endeavors to compete globally with the market leaders in the industry. It was said that the year 2004 was a watershed for the Indian entertainment and games industry (according to the Federation of Indian Chambers of Commerce and Industry [FICCI] survey on the Entertainment Industry). The entire year was proclaimed by increased use of entertainment in the Bollywood portion. According to the FICCI report, the increasing demand for downloads of games on cell phones will enhance the opportunities for gambling companies and bring in new entrants.
Several Indian companies are getting into collaborations with foreign new mass media companies, which outsource their work to the Indian companies. Just lately, Toonz Entertainment floated a joint venture with First Serve International LLC, a global press company which is designed to create and send out top-notch entertainment development for the planet market. The brand new business will be headed by past Walt Disney executive Ed Bordering. In 2004, a Chinese company also invested in India Video games Ltd.
Toronto-based entertainment Products Company Kahani was collaborating with Mumbai structured Entertainment Bridge. On this enterprise, Kahani was expected to invest US$30-US$40 million over the next three years to engage in film development. The storylines and scripts will be completed in Canada whilst product development and advertising are expected to be achieved in India. The business was also likely to link up with Bangalore and Hyderabad-based studios. Zee's entertainment arm, Padmalaya Telefilms, has agreed upon a US$14 million deal with Italian producer-distributor, Mondo TV, to co-produce four new animated series. Padmalaya also offers collaborations with United kingdom entertainment companies Mallard Multimedia and Ealing Entertainment.
CONCLUSION
The Indian interactive press and entertainment industry has seen tremendous growth in the last year or so. It was fast rising from as an outsourcing vacation spot for western entertainment companies to build up and showcase its capacities and potentials. The introduction of various industry-related organizations and companies, and the option of affordable and proficient expertise, point to remarkable potential this sector provides.
Whilst there are interior obstacles to the Indian interactive press and entertainment industry, given the attempts being carried out by the federal government and like-minded organizations, it will be eventually, that India lays a strong claim as a major international player in this industry. It was thus opportune for Singapore and countries in the region to identify potential opportunities for collaboration so that we have the ability to ride on the waves of the Indian interactive marketing and entertainment industry.
