Domestic entertainment companies have begun targeting the Indian market with dramas, webtoons, and the music industry. India has high entry barriers, but it is assessed that substantial revenue can be generated once established in the market.
HYBE noted on the 1st that it is conducting market research and corporate establishment procedures for the Indian market, aiming for a launch around September to October. The establishment of the Indian corporation, driven by Chairman Bang Si-hyuk’s plan, is a strategy to export the K-pop success model to a market of 1.4 billion people. Bang stated, “We need to apply the K-pop business model to other music genres and export it to survive.”
Among domestic corporations, Kakao Entertainment is actively tapping into the Indian market. Kakao Entertainment made its presence known in the Indian market by acquiring the film and drama production company KROSS Pictures for approximately 5.9 billion won in 2020.
Founded in 2003, KROSS Pictures established a corporation in India in 2015 and began film production there. In 2019, it achieved box office success in India with its remake of the Korean film “Ms. Granny,” titled “Oh! Baby,” reaching number one at the Indian box office.
Kakao Entertainment also targeted the webtoon market with KROSS Pictures' Indian webtoon platform, KROSS Komics. Although KROSS Komics was discontinued in 2023, it continues to operate in India through the English webtoon platform Tapas. Last year, Tapas exceeded daily transaction volumes of 200 million won. Webtoons are digital comics serialized on various platform media and have established themselves as a proper noun for digital comics even overseas.
The reason domestic entertainment companies are challenging the Indian market is due to its massive market size. According to the Korea International Trade Association’s report released in April, the Indian media and entertainment (M&E) industry is expected to grow from approximately 43 trillion won last year to 46 trillion won this year. The digital media industry is projected at 15 trillion won, publications at 4.5 trillion won, and music at 1 trillion won.
A major obstacle is the high entry barriers. There are significant differences in cultural diversity, language, and regional characteristics. The population exceeds 1.4 billion, and there are more than 20 official languages. Additionally, the cultural spheres are divided into more than 10 categories. Companies face the challenge of overcoming complexities related to culture, language, and regional characteristics.
An official from an entertainment company said, “It is clear that this is a market that generates money, but languages and preferences differ by region, and there is virtually no national distribution network to disseminate media content.”
He added, “There are many considerations to take into account before entering the Indian market, including sensitivities to religious and political expressions, and numerous complaints from regional organizations, so we are looking to resolve these issues through local partnerships and censorship with the local corporation.”