The Indian entertainment market

Everyday Indians gather at home in the evening and watch, on free TV, one of the dozens of soap operas with hundreds of episodes. The restrictions on erotic and violent scenes are very strict. A “numbing” of the mind, as described poetically by an industry expert.

Millions of Indians watch videos in their phones, in their homes in the evening, when they are using mass transport or at times even at their offices, usually free of charge. Netflix, Amazon and Disney want to make Indians pay to watch shows that resemble more to those aired in Europe and America, bolder, sexier, funnier.

Until 2016 the widespread use of mobile phones looked like an extravagant Bollywood script. Only the very rich Indians would be able to afford data plans for their phones. However, Reliance Jio, a new mobile phone operator, started a price war, which is still ongoing. Today in India there are 300 million smartphones and 200 million TV sets. Snjay Gypta, a Disney executive, says that each Indian home has at least a second or third TV set. This opportunity created by the access to cheap data plans, fueled the production of other styles of shows by Hollywood. Netflix, Amazon and Disney (who owns Hotstar) are investing hundreds of millions of dollars.

The production budgets have exploded, attracting Bollywood actors and expert consultants. India's allure is understandable. Besides being populous and fast-growing, it lacks quality home-grown television. On the other hand, the average Indian household does not have the purchasing power of other developed countries. In America the average spending per household for cable television is 80$, whereas in India just 4$. Netflix subscription costs 10$ per month, a particularly high cost for the average Indian compared to the average American.

Nevertheless, India is a developing economy, the average income is expected to rise and it is certain that the entertainment market will be a market where many contenders will fight to gain a share.