TRENDS IN AUDIOVISUAL MARKETS:PERSPECTIVES FROM ASIA : TRENDS IN AUDIOVISUAL MARKETS: PERSPECTIVES FROM ASIA   A Report Prepared for UNESCO by AMIC (Asian Media Information and Communication Centre)


Slide2: Editor-in-chief: Dr Madanmohan Rao, AMIC Mr Arun Jethmalani, CEO, ValueNotes, India Ms Srikanya Mongkonsiri, Managing Director, ChuoSenko, Thailand Dr. Mary Ebitha Y. Dy, Chair, Communications Dept., Miriam College, Philippines (+ Jerry Joshue)


India: Overview : India: Overview Media boom: TV, radio, mobile, newspapers, Internet Audiences: domestic, diaspora; fusion/hybrid Urban environments: multiplexes Industry trends: globalisation, structural organisation (financing, distribution) Challenges: high license fees, public interest (news/views), piracy


India: Overview : India: Overview India is the third largest producer of original entertainment content with over 40,000 hours of original programming (2001) The government however, needs to further enhance the transition to seamless and transparent regulations for the industry


TV : TV Fastest-growing segment in the Indian entertainment industry Cable origins: without any laws in place; local entrepreneurs Movies recover 10-15 per cent of their cost from TV channels


TV: TV Cable TV – high penetration (51 percent of households) Cable TV: upwards of 30,000 cable operators; 6,800 head-ends More than 100 satellite channels


Music industry: Music industry Cassette tapes: nearly 95 per cent of sales; low penetration of optical media Rapid growth of purchases of consumer electronics products: CDs/VCDs/DVDs, car audio systems


Music industry: Music industry Hindi film music has the dominant share 67 per cent Indipop: 15 per cent share. No restrictions on foreign firms in the music business, nor on imports and distribution of music (India made no commitments under GATS for the music sector) Recent development: FM channels caused loss of product sales to tune of 15-20 per cent


Movie Industry: Movie Industry Largest producer of movies in the world (over 1,000 commercial movies every year) Highly unorganised and fragmented 6,000 producers; hundreds of distributors: now consolidating Employing over three million Mumbai (Bollywood – Hindi), Andhra Pradesh (Telugu), Tamil Nadu (Tamil), Kerala (Malayalam), West Bengal (Bengali)


Movie Industry : Movie Industry 2001: Film was given “industry” status (allows funds access from the formal banking sector) FDI: 100% in movie production, exhibition and distribution; 49 per cent in multiplexes. Entertainment tax: capped at 60% (originally 110 per cent!)


Movie Industry: Movie Industry Income: domestic box office (63% in 2002); $2.3 billion by 2008 Revenues from movie music rights: domestic (60 per cent) exports (40 per cent) Hollywood: successful in English; now dubbing in Indian languages Effects: Indian directors making movies in English, Hinglish Five-year tax holidays to multiplexes


Broadcasting: Challenges: Broadcasting: Challenges TV Under-reporting of connected households by the local cable operators Share of subscription revenues between operators and broadcasters Radio Radio industry: less than 5 per cent of total advertising share (Sri Lanka: 20 per cent; mature markets: 10-15 per cent) Revenue sharing model, license durations


Regulations and Legal Frameworks: Regulations and Legal Frameworks Copyright Act, 1957 Telecom industry: autonomous regulator (TRAI) FDI: not allowed in FM Radio, upto 20% in direct-to-home (DTH) and 49% in the cable industry Foreign news broadcasters: beam yes, but uplink no


Regulations and Legal Frameworks: Regulations and Legal Frameworks Central Board of Film Certification (CBFC), + state Censor Boards Ministry of Information & Broadcasting: Mass media, films and broadcasting Telecom Regulatory Authority of India (TRAI): regulator for Telecom, Television, Cable & Satellite and the FM Radio industry. 1995: Cable TV Network Regulation Act


Commitments in Audio-visual Services : Commitments in Audio-visual Services Uruguay Round: commitments only included motion picture and videotape distribution services Import of foreign films: earlier restricted to 100 titles per year; certification


Thailand (overview): Thailand (overview) Thailand: first country in Southeast Asia to begin regular TV transmissions Promotion: regional hub for movie production and post-production Two newly established ministries – Tourism and Sport Ministry and Cultural Ministry Central Motion Pictures Council


Thailand (overview): Thailand (overview) PM Thaksin Shinawatra: significant stake in a number of media groups Key challenge: piracy; transformation from purely a price-driven market to a value-driven market


Radio: Radio AM songs: Thai, rural life FM: Thai/Westernised pop, urban Radio operators: Public Relations Department, Royal Thai Army, Mass Communication Organization of Thailand (MCOT)


Radio, music : Radio, music Radio Thailand's shortwave world service: 12 languages (English, French, German, Lao, Mandarin, Vietnamese, Khmer, Malay, Indonesian, Japanese, Burmese, Thai) Music industry players: GMM Grammy, RS Promotion


TV and movies : TV and movies As of 1984, TV exceeded radio ownership Major networks: UBC, Thaistar (Shin: IPTV) Major Cineplex Group: country's largest cinema operator


Slide21: “While most of the free TV are airing more entertainment and have introduced some new technology, little has been done to improve program quality. That the quality of the content on Thailand's free TV stations is heading downhill due to the absence of a broadcasting regulatory body.”   Somkiat Tangkitvanich Thailand Development Research Institute (TDRI)


Regulations and Legal Frameworks : Regulations and Legal Frameworks Acts Telecommunication Act of 2001 Broadcasting Act of 2000 Foreign Business Act (1999) (minority ownership in media) Foreign ownership: maximum of 25% Bodies National Broadcasting Committee (NBC) The National Telecommunication Committee (NTC) Mass Communications Organisation of Thailand (MCOT) The Public Relations Department of Thailand (PRD)


Philippines (overview): Philippines (overview) Strong influence of the West: Spain (333 years), US (45 years) TV networks more powerful than movie industry Mobile phones: “Mobile data services may save the music industry” (ringtones) Challenges: Piracy


Radio: Radio 90 percent of the stations in the country are commercial ones 5.8 million households own radios; 82 percent of the population (2.1 million households in Metro Manila)


Cinema: Struggling but Surviving : Cinema: Struggling but Surviving External influences: Japan, US Market share of the Philippine movie industry in its own country is about 15 percent only Competition: US, HK Challenges: piracy


Content, capacity: Content, capacity Cable ownership is 20 percent 2001, 2002: level of piracy (film discs) was 80 percent Filipino composers: prolific and talented Mobile phones penetration: 20 million (about 25 percent of the population); ringtones, downloads Film Academy of the Philippines (FAP): no work permits to a foreign film company or actor unless there is a favorable endorsement from the FAP


Regulations and Legal Frameworks : Regulations and Legal Frameworks Acts Muslim Radio Act: 2002 Optical Media Act: 2004 Organisations Department of Transportation and Communication Movie and Television Review and Classification Board (MTRCB): 1985 National Telecommunications Communication (NTC) Optical Media Board (OMB)


Trends to watch : Trends to watch Media convergence (GMA-Channel 7 + Philippine Daily Inquirer = online venture INQ7.net) The Filipino Channel (TFC) in US Positioning: Think global to be competitive, but also support local content and culture (go beyond dubbing) Contribution: Tempering profit motivation with social responsibility (value-added and value-laden)


Overall Trends : Overall Trends New media: products, markets; workflow (Internet/Intranet/Mobile/Wireless) Digital recording, digital projection in cinema halls Market for niche productions Diaspora markets Media outsourcing: editing, animation, co-production Need of the hour: continuous capacity building and learning curves for the creative communities


Additional research: UNESCO: Additional research: UNESCO A large number of developing countries are turning into AV exporters, notably in TV products China, Thailand, Filipinas, India, Brazil, México, Korea, Nigeria). From 27.6% to 44.6% of the market between 1994 and 2002 Drawback : low quality, no innovation; copy of formats Other countries continue in the margins of cultural production with no domestic production: No purchasing power to consume them; Illiteracy; Lack of financial and human resources in the production chain; shortage of reception equipment (TV, DVD)


Additional research: UNESCO: Additional research: UNESCO Exponential development of multichannel TV : Asia- most cabled region of the world More exhibition theatres in industrialized countries, less in the rest of the world Many countries do not have an enabling regulatory framework to stimulate quality AV production


Slide32: “In sum, the prospects for the audiovisual industries in all three countries look promising, provided the regulatory environment becomes more supportive and the creative communities stay at the cutting edge of the innovation curve.”


Slide33: madan@techsparks.com digitalnomad@hotmail.com