Analysis of the cinema market in India
The relevance of research
In India, cinema is developing and popularizing, there is a gradual revival of the industry (after the collapse of the USSR). The recovery of the market is favorably influenced by stimulus and protectionist measures from the state
Purpose of the study
Analysis of the state of the cinema market in India, assessment of the market size, analysis of competitors, as well as identification of factors affecting the cinema market
Content
Part 1. Overview of the Indian film market
1.1. Definition and Characteristics of the Indian Film Market
1.2. Dynamics of the Indian film market, 2015-2021
1.3. Market structure by type of service provided in India
1.4. Film market structure by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive Analysis of the Indian Film Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of cinema consumption
3.1. Estimated per capita cinema consumption
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the film market until 2027
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian film market
1.1. Definition and Characteristics of the Indian Film Market
Consider the characteristics and features of the Indian film market.
The film industry (according to the definition generally accepted in the world) is an industry that produces ...
Movies are usually produced in film studios. Films are currently being shown...
The cinema market in India is characterized by the following features:
In India, cinema is developing and…
The recovery of the industry is favorably influenced by…
The main source of income generation in the film industry at the moment is ...
Spreading …
...
A particular influence on the development of the Indian film industry has…
1.2. Dynamics of the Indian film market, 2015-2021
Consider the dynamics of the cinema market in India.
The size of the cinema market in India is determined in physical terms based on the number of domestically produced films released during the period under review. The dynamics of the indicator during the period from 2015 to 2021 had ...
For the period from 2015 to 2019 the largest growth was observed in …g. (+…%), decrease – …
From December 26, 2019 to December 24, 2020, ... Domestic films were released in India and the CIS countries amounted to about ...% of the total number of releases. The film industry in 2020 is...
From December 24, 2020 to December 23, 2021, ... domestic films were released ... Domestic films accounted for ...% of the total number of releases (...).
Diagram 1. Dynamics of the cinema market volume in real terms, 2015-2021, units
The cinema market in value terms is determined on the basis of the revenues of companies by type … According to Rosstat, in value terms the volume of the cinema market is … from … bln Rs. in 2015 to … billion Rs. in 2021 Total for the period from 2015 to 2021 market ...
The highest growth in revenues of companies involved in film production was observed in … (…) and 20… (… times). In 2019, the market is …%. Part of the projects scheduled for release in 2020 were postponed due to the pandemic, the economic crisis for 2021, which led to …
A feature of the film market in India is the state ... In 2019, the pre-crisis year, ... films created by ... The box office receipts of these films amounted to ... billion rupees with a total support of ... billion rupees.
Table 1. Dynamics of films released with government support in 2015-2021, units rev.
The share of non-refundable support in the total budget for the production of these films in 2019 decreased to …% (…%). On average, over five years, the share of state support allocated on a non-refundable basis amounted to …% of the total production budget (…).
2016 has been declared the Year of Indian Cinema, in honor of which all subsidies …
Despite …, there was an increase in fees and average …
...
However, in 2020 there was a sharp jump in the indicator ...
Figures in 2021 … but were …
1.3. Market structure by type of service provided in India
The structure of the cinema market by type of service is considered from the point of view of the types of films released for distribution. In 2021, the most rentals were … – …% of the total. Share of gambling …%.
In 2021, ... fiction, ... pictures came out on domestic screens. If we consider the structure of the market in terms of genres, among game projects dominated by ...: these genres accounted for ... films, respectively, which amounted to about ...% of the total number of Indian releases. The most common sub-genres are...
Compared to last year, … the number of animated films is from … in 2020 to … in 2021.
Diagram 4. The structure of the cinema market in India by genre in 2021, %
1.4. Film market structure by Union Territories
Diagram 5. Structure of the cinema market in India by Union Territories in 2015-2021, %
The structure of the Indian cinema market by union territories is considered on the basis of information ...
In the structure of the cinema market by union territories, the main part belongs to …Union territories (…% in 2021), in second place is …(…%).
The geographical structure of the film market is determined by …
1.5. Assessment of current trends and development prospects of the studied market
...
1.6. Assessment of factors affecting the market
Macroeconomic factors influence the dynamics of all sectors of the Indian economy, including the film market. The main groups of factors are: economic, political, social and technological.
Economic
GDP (gross domestic product) is used to determine the rate of economic development of any state. GDP is a macroeconomic indicator that reflects...
Chart 6 shows India's GDP growth rate from 2007 to 2021 at comparable prices (at 2016 prices).
The impact of the crisis, which began in 2008, led to a decrease in GDP by …% in 2009, but then the growth rates were ...
Further, until 2014, the growth rate was …
The volume index of gross domestic product in 2020 amounted to … by 2019.
The volume of India's GDP for 2021, according to the first estimate of Rosstat, amounted to … billion rupees in current prices. The index of physical volume of GDP relative to 2020 amounted to …%.
The head of the Accounts Chamber of India, Alexei Kudrin, announced on April 12, 2022 that…
...
One of the factors of pressure on GDP can be called the deterioration of the price environment in the commodity markets. Chart 7 shows the dynamics of the US dollar against the rupee.
...
- Social (demographic)
- ...
- technological
- ...
- Political
- ...
Table 5. STEP analysis of factors affecting the film market
According to the results of the performed STEP-analysis, macro-environment factors have a greater influence on the cinema market. All groups of factors have an impact on the development of the market.
Factors such as …
The film market in India is positively impacted by: …
1.7. Analysis of sectoral indicators of financial and economic activity
During 2015-2017 and in 2020. the film industry's gross profit margin was ... at the level of a similar financial ratio for the Indian economy as a whole, in ... - lower. At the end of 2021, the gross margin of the film industry in India amounted to …%, which is by … percentage points … the level of this indicator in the Indian economy as a whole.
In general, for 2015-2021. Gross margin of the film industry...
At the same time, profitability before tax in the Indian film industry since 2016 … is similar to all sectors of the Indian economy. In addition, during 2017-2018 rate of return...
At the end of 2021, profitability before tax in the film industry amounted to …%, which is … from the average Indian level.
...
The indicator of current liquidity is a measure of the solvency of the organization, the ability to repay the current (up to a year) obligations of the organization. The estimated indicator of the current liquidity of a normally operating solvent legal entity should ...
For the industry under consideration, during the period from 2015 to 2021, the dynamics of the total coverage indicator ... The nature of the change in this value ... In 2016, 2019 and 2020, there was ... The annual value of current liquidity is greater ... this indicates ...
A more stringent liquidity criterion is the absolute liquidity ratio. It shows what part of short-term liabilities can be repaid immediately if necessary at the expense of ... In the film industry in 2016-2021. the absolute liquidity ratio corresponds to …, while in 2020 and 2021 it slightly differs from …
...
In general, the analysis of the financial ratios of the film industry in India shows acceptable indicators ..., but a low level ... In addition, the indicators of industry values of current and absolute liquidity are in the range ...
Part 2. Competitive Analysis of the Indian Film Market
2.1. Major players in the market
In total, according to Rosstat, by type of activity OKVED2 59.11 - “Production of films, video films and television programs” and showing non-zero revenue in 2020, … companies were registered.
As the largest film producers are considered ...
The TOP-5 of the rating includes companies from the presented list with the maximum revenue in 2020, engaged in the production of films, television films, TV channels and television programs - LLC “…”, LLC …
2.2. Market shares of the largest competitors
In accordance with the data of Rosstat, among the companies included in the TOP-10 according to the rating of …, the largest volume of revenue and market share was observed by LLC “…” - a share of …%, JSC “…” - a share of …%, …
2.3. Profiles of major players
Table 9. Basic information about the participant No. 1 of the cinema market
...
The total revenue of the leading companies of the market in 2018-2021 tended to … and estimated in 2021 amounted to … billion Rs., which is …% higher than the level of 20… and by …% the level of 2015.
Part 3. Analysis of cinema consumption
3.1. Estimated per capita cinema consumption
Estimation of the volume of consumption of the cinema market in India per capita was made by GidMarket on the basis of the ratio of volume ... in value terms to the population of India.
As can be seen in the diagram, cinema consumption in value terms increased from … Rs./person/year in 2015 to … Rs./person/year in 2021.
3.2. Market Saturation and Estimated Market Potential in India
The potential of the film market is determined based on the analysis of film distribution in European countries in comparison with indicators for India.
The market potential is considered in terms of cinema attendance and the potential for growth in the share of domestic cinema in the volume of film distribution.
First, we present data for the last pre-crisis year of 2019.
As can be seen from the presented table, per 1 person, the most visited cinemas are in ... (... visits per year, compared to India - ... visits).
The largest share of national cinema in the box office is …
If we consider the market potential in terms of attendance growth, then saturation as of 2019 is estimated at …%. From the point of view of domestic film production opportunities, the market is saturated by …%.
In 2021, over … million people visited European cinemas, which gives an increase of …% compared to 2020. Cash receipts…
We will also present comparative data by country for 2021, despite the fact that the pre-crisis indicators of 2019 were not achieved.
Table 16. Comparison of indicators in 5 European countries by cinema attendance in 2021, units rev.
As can be seen from the presented table, in 2021, per 1 person, the most visited cinemas were in …
The largest share of national cinema in the box office is …
If we consider the market potential in terms of attendance growth, then saturation as of 2021 is estimated at …%. …
3.3. Description of consumer preferences
...
3.4. Price analysis
The price situation in the cinema market is considered from the point of view of producers (average film production budget) and consumers (cinema tickets).
According to the information … the average budget of a feature film by 2019 has reached … million Rs. The average annual increase in prices since 2015 is …% (CAGR). The budget of the animated film is higher, in 2019 it amounted to … million Rs. (CAGR 2015-2019=…%).
… In 2021, the average budget is about … million Rs., in 2020 - … million Rs. – in both years, the deviation from the level of 2019 did not exceed …%.
For the period from 2015 to 2020 there was … the growth rate of prices for cinema tickets: the largest growth was observed in 2015 – …%, the smallest – in 2020 – …%. Price growth in 2020 turned out to be …
However, by the end of 2021, movie ticket prices increased by almost …%, which was due to the weakening of measures to …
Comparing prices by districts, we can conclude that the highest prices were established (in 2021) in …Union Territories (by …% higher than the average for India) …Union Territories (by …% higher). The lowest price level is in…
Part 4. Assessment of factors of investment attractiveness of the market
...
Part 5. Forecast for the development of the film market until 2027
...
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
...
Diagrams
Diagram 1. Dynamics of the cinema market volume in real terms, 2015-2021, units
Diagram 2. Dynamics of the cinema market volume in value terms, 2015-2021, billion Rs.
Diagram 3. Structure of the cinema market by type in 2021, %
Diagram 4. The structure of the cinema market in India by genre in 2021, %
Diagram 5. Structure of the cinema market in India by Union Territories in 2015-2021, %
Chart 6. Dynamics of India's GDP, 2012–2021, % to the previous year
Chart 7. Monthly dynamics of the US dollar against the rupee, 2015-2022 (Jan-Mar), Rs. for 1 US dollar
Diagram 8. Population dynamics in India as of January 1, 2010-2022, million people, %
Diagram 9. Population forecast in India for the period 2021-2024, million people
Diagram 10. Dynamics of real incomes of the population of India, 2011–2021, % to the previous year
Diagram 11. Total revenue of online video services in India in 2018-2021, million Rs.
Diagram 12. Profitability before tax (profit of the reporting period) in the field of cinema in comparison with all sectors of the Indian economy, 2015-2021, %
Diagram 13. Current liquidity (total coverage) in the film industry for 2015-2021, times
Chart 14. Business activity (average turnover period of receivables) in the film industry, for 2015-2021, days days
Chart 15. Financial stability (security of own working capital) in the field of cinema, in comparison with all sectors of the Indian economy, 2015-2021, %
Diagram 16. Shares of the largest competitors in the cinema market in 2021, %
Diagram 17. Volume of cinema consumption per capita, 2015-2021, Rs./person
Diagram 18. Distribution of answers to the question ""Should the state support Indian films?"", %
Diagram 19. Forecast of the cinema market size in 2022-2027, units rev.
Tables
Table 1. Dynamics of films released with government support in 2015-2021, units rev.
Table 2. Main indicators of Indian film distribution in 2015-2021, units rev.
Table 3. Urban and rural population in India in 2014-2021 (as of January 1), million people, %
Table 4. Dynamics of the main indicators of the provision of the population with film screening infrastructure in India in 2015-2021, units rev.
Table 5. STEP analysis of factors affecting the film market
Table 6. Gross margin of the film industry in comparison with all sectors of the Indian economy, 2015-2021, %
Table 7. Absolute liquidity in the film industry compared to all sectors of the Indian economy, 2015-2021, times
Table 8. Main companies participating in the film market in 2021
Table 9. Basic information about the participant No. 1 of the cinema market
Table 10. Basic information about the participant No. 2 of the cinema market
Table 11. Basic information about the participant No. 3 of the cinema market
Table 12. Basic information about the participant No. 4 of the cinema market
Table 13. Basic information about the participant No. 5 of the cinema market
Table 14. Dynamics of the total revenue of the largest cinema market operators (TOP-5) in India, 2015-2021, million Rs.
Table 15. Comparison of indicators in the TOP-5 European countries by cinema attendance in 2018-2019, units rev.
Table 16. Comparison of indicators in 5 European countries by cinema attendance in 2021, units rev.
Table 17. Distribution of answers to the question “Please tell me, which countries / regions of the world do you prefer to watch films? Please name 2-3 countries or regions of the world”
Table 18. Distribution of answers to the question “Do you think the quality of Indian films released in 2021 is better, worse or the same as that of films released in 2019-2020?”
Table 19. Average film production budget in India in 2015-2021, million Rs.
Table 20. Consumer price indices in the cinema market in India in 2015-2022 (Jan-Feb), %
Table 21. Average prices on the cinema market in the Union Territories in 2015-2021, Rs./ticket
Table 22. Assessment of factors of investment attractiveness of the cinema market
Table 23. Forecast indicators of the development of the Indian economy in 2022-2024, %
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