Indian media and entertainment industry is big market: John Harrison, EY
, ET Bureau|
Updated: Sep 25, 2017, 10.30 AM IST
According to EY, the global audit and consulting firm, the media and entertainment (M&E) sector is likely to see increased merger and acquisition (M&A) activity, driven by convergence and digital disruption. John Harrison, global media & entertainment sector leader at EY , feels that internet and tech businesses are really upending every aspect of the traditional media ecosystem. In an exclusive interaction with ET , Harrison spoke about M&E's potential in India, opportunities and challenges for MNCs and attractiveness of Indian market.
Edited excerpts:
How do you see Indian market in terms of media & entertainment industry?
First of all, it's already a big market -183 million TV homes, 1.3 billion people, a middle class that's rising, multiple extremely large cities and urban areas and from outside in, it seems like a culture that really enjoys consuming media. It has both global players that have a national or local footprint, and local players that have a national footprint. The other thing is the vibrancy of the entrepreneurial community here, both around content development and technology development.
Does it still provide enough opportunities for foreign companies?
For the parties that aren't here today, they track India like they track China and other growing markets around the world. Ultim tely, it's a question of what's the viable entry strategy for a compa ny to get scale that makes sense for it today, relative to other priorities it has for its capital.
But still India has seen less activity in deal transactions this year. Why?
The real struggle is trying to find attractive targets of a size that will move the needle for the major media companies around the world relative to other opportunities they have today to deploy capital.
What is your view on the M&E industry and the changes globally?
At EY, we believe that a strategic realignment of the industry is happening and it's driven by convergence of all types vertical integration and horizontal consolidation. People are definitely investing in content, because they need to pull in audiences and to differentiate themselves. They are investing in capabilities, often times through transactions outside their core business.
They are buying tech, talent and could be access to new markets.And they are making the decision that they need to acquire rather than build organically because the timing of the speed to market is so essential here.
Edited excerpts:
How do you see Indian market in terms of media & entertainment industry?
First of all, it's already a big market -183 million TV homes, 1.3 billion people, a middle class that's rising, multiple extremely large cities and urban areas and from outside in, it seems like a culture that really enjoys consuming media. It has both global players that have a national or local footprint, and local players that have a national footprint. The other thing is the vibrancy of the entrepreneurial community here, both around content development and technology development.
Does it still provide enough opportunities for foreign companies?
For the parties that aren't here today, they track India like they track China and other growing markets around the world. Ultim tely, it's a question of what's the viable entry strategy for a compa ny to get scale that makes sense for it today, relative to other priorities it has for its capital.
But still India has seen less activity in deal transactions this year. Why?
The real struggle is trying to find attractive targets of a size that will move the needle for the major media companies around the world relative to other opportunities they have today to deploy capital.
What is your view on the M&E industry and the changes globally?
At EY, we believe that a strategic realignment of the industry is happening and it's driven by convergence of all types vertical integration and horizontal consolidation. People are definitely investing in content, because they need to pull in audiences and to differentiate themselves. They are investing in capabilities, often times through transactions outside their core business.
They are buying tech, talent and could be access to new markets.And they are making the decision that they need to acquire rather than build organically because the timing of the speed to market is so essential here.
