Page 60 - DMGT522_SERVICES MANAGEMENT

Unit 2: Emergence of the Services Economy

variety of activities are being undertaken by the Government of India, ranging from protecting Notes
and encouraging cultural endeavors at grassroots level to promoting cultural exchanges
internationally; from programmes to preserve India’s ancient heritage to encouraging an array
of contemporary creative arts.
A network of 41 organisations is functioning under the Ministry of Culture, for protection,
development, and promotion of tangible heritage, intangible heritage, and knowledge heritage.
There are also a large number of schemes and programmes to extend financial support to
individuals, group of individuals, and cultural organisations engaged in performing, visual,
and literary arts. A total allocation of 3,555 crore was made to this sector in the Eleventh Plan
period.

Creative industry includes cultural heritage; printed matter and literature; music and performing
arts; visual arts; audio-visual media including cinema, television, radio and photography, and
socio-cultural activities; museum and archives. Trade in creative industry can be broadly classified
into goods and services. According to UNCTAD, world exports of creative industry goods in
2010 are estimated at US$ 383 billion, growing at a CAGR of 8.6 per cent since 2002. India is
ranked eighth largest exporter of creative goods, with a 3.6 per cent share of world creative
goods exports. In absolute terms, India exported US$ 13.8 billion worth of creative goods in
2010, with a CAGR of 17.7 per cent, much higher than the world average. UNCTAD estimated
world exports of creative services in 2010 at US$ 176 billion, growing at a CAGR of 15.4 per cent.
India is ranked 13th with a 2.3 per cent share in world exports of creative services. India exported
US$ 4 billion worth of creative services in 2010, at a CAGR of 26 per cent.
According to a report by Ernst and Young, the Indian media and entertainment industry is
valued at US$ 16.3 billion in 2010 and is projected to grow at a CAGR of 12 per cent in the next
four years (2011-14) to reach a value of US$ 26 billion. The Indian media and entertainment
services industry comprises visual entertainment services (broadcasting and cable television,
films) printing (newspapers, books, periodicals), and audio entertainment services (radio, music).
In addition, internet services also deliver such content through networks. The rapid convergence
of networks, devices, and content is expected to dramatically alter the dynamics of the Indian
media and entertainment industry. India is estimated to have more than 700 television channels
and 100 million pay-TV households. The television distribution sub-segment is dominated by
highly fragmented analogue cable which includes about 60,000 local cable operators and 100
multi-system operators. The Cable Television Networks (Regulation) Amendment Act 2011 has
put in place a legal framework to facilitate digitalisation. Four metros will go digital in cable
television by 30 June 2012, with the rest of the country following suit by 31 December 2014. The
digitalization will redefine broadcasting and bring benefits to all stakeholders.
For the regulation of content in case of general entertainment channels, a self-regulating
mechanism has been put in place by the broadcasters in consultation with the Government of
India and a Broadcast Content Complaints Council has been made operational from 1 July 2011.
There are 245 private FM radio stations, along with the government controlled All India Radio,
operating in 237 radio stations. FM Radio was opened to private sector in 1999, with the
announcement of FM Phase-I policy. Phase-II was announced in 2005. So far 86 cities of India are
covered under private FM stations. In the third phase, the Government has taken a decision to e-
auction 839 FM channels spread over 245 cities across the country. This would usher in a new era
of infotainment for people besides introducing new vistas of opportunities for employment and
income for the people. In the music sub-segment, film music accounts for two-third of sales
across India. The large mobile subscription base of India is also contributing to the growth
opportunities of the music and radio sub-segment.
With the production of over 1,000 films a year, in over 20 languages, the Indian film industry is
the largest in the world. The film industry is also contributing to outsourcing of services such as
animation, visual effects, conversion of 3D, and post-production services, to the ICT sector, thus

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