23937150 Media and Entertainment Industry

Media &Entertainment

ROADMAP Overview of Indian Media & Entertainment

Industry

Entertainment sector

India Film Industry – Multiplex

Media Sector

Career opportunities for MBA’s in this industry

Primary Information

Indian Media & Entertainment Industry - Zooming aheadCurrent Market Size is estimated at Rs. 61,000-crore

Expected to reach Rs. 1,05,200-crore by 2013, at a CAGR of 19%

Maximum growth expected in Television and Film segments

More than 300 national and regional TV channels

Close to 1000 films made every year

Liberal FDI policies across all the segments of the industry

Government focusing on regulations to give further impetus to the industry.

Source: IMaCS Analysis, FICCI-PWC Frames 2006 Report

Major constituentsBreakup of Indian Media & Entertainment Industry

Live Entertainment2%

Internet Advertising0.3%

Outdoor Advertising2.5%

Print Media30.9%

Radio0.8%

Films19.3%

Music2.0%

Television41.9%

Key Drivers of the Indian M&E Industry

Key Drivers

Consumerism

Advertising spendPricing

Content

Technology

Regulation

Source: IMaCS Analysis

(b) up to 26% in publishing News Papers and Periodicals dealing in News and Current Affairs subject to a few conditions

(a) up to 100% in publishing/printing scientific & technical magazines, periodicals & journals3. Print

Media

for the full value chain like film financing, production, distribution, exhibition and marketing upto 100%

2. Films

upto 100% through the automatic route1. Advertising

Guidelines for Foreign Direct Investment in the Indian M&E

Industry

FDI Regulations for Indian M&E Industry…2

a)TV Software Production100% foreign investment allowed subject to a few conditions

b) Setting up hardware facilities, such as uplinking, HUB, etc.upto 49% paid up share capital

c) Cable Networkupto 49% of paid up share capital.

d) Direct-to-HomeMaximum foreign investment of 49% paid up share capital include

e) Terrestrial Broadcasting FMto the extent of 20% of the paid up share capital of the company. The licensee should be a company registered in India under the Companies Act.

f) Establishment and Operation of SatelliteFDI up to 74% is permitted with prior Government approval

4.

Broadcasting

Guidelines for Foreign Direct Investment in the Indian M&E

Industry

Source: IMaCS Analysis

ENTERTAINMENT

TV MULTIPLEX

AMUSEMENT PARK

STAR TV

ZEE TV

SONY PICTURES

ADLABS FILMS

PVR CINEMAS

INOX LEISURE

•ESSEL WORLD

Porter’s Five Forces Analysis of Entertainment Industry

Bargaining Power of Consumer(High)

Consumer can switch channels Increased globalizationAvailability of a variety of alternative sources of

entertainment

Threat of New Entrants(Low)High sunk costsHigh capital requirementDifficult access to distributionSteeper learning curve because of mature market

Competitiveness within the Industry(High)

Highly Fragmented Industry

High Fixed Cost

Highly perishable products

Highly diversified rivals

Bargaining Power of Suppliers(Low)

Decreasing bargaining power of suppliers

Increasing number of content providers

Threat of Substitutes

Film Industry

Significant sporting events like World Cups

Significant cultural events

Print media

Internet

Source: TAM Media Research

Genrewise Television Viewership Share in India

39%

38%

5%

8%2% 4%

3%1%

News Channels

Sports Channels

Mass Entertainment

Hindi Film Channels

Kids Channels

Regional Channels

English Entertainment

Music Channels

Largest TV network with 19 channels reaching 90% of the population

Entered in 1991 and offers more than 10 channels in mass

entertainment, sports, news,, music, movies etc.

Pioneers of the Indian Television industry with 22 channels. It is present in broadcasting, cable distribution, production and distribution of films, creation of animation software

Present with 3 channels focusing on Hindi entertainment and sports

Based in South India with 14 channels in four languages and offers news, movies, music, kids shows.

Present in India through two kids channels and has recently bought one more kids channel

Zee TelevisionsLaunched in the October 1992 & keeps tab with

167 countriesReach to about 500 million viewers

globally including USA, Canada , Europe, Africa, the Middle East, South East Asia, Australia and New Zealand

Key driver of the growth of cable and satellite industry in India for the last 16 years

Largest producer and aggregator of Hindi programming in the world, with more than 80,000 hours of original programming in the library

Ranked as the ninth most popular brand within a decade of its launch.

SWOT analysis of Zee Entertainment

Strengths

•High viewership ratings•Complete bouquet of channels•High subscription revenues

Weaknesses

•Lagging behind Star Plus•Problem of attrition•Increase in operating costs

Opportunities

•Benefit from the robust growth of the Entertainment and Media sector•Digitization

Threats

•Slowdown in India's economic growth•Increased competition•Declining viewership and revenue share of GEC channels

Financial PerformanceAd Sales Up 25%; Net Profit Up 21% in Q2 FY10

Consolidated

Rs. Million Sep 09 Jun 09 QoQ

Net Profit 1109 913.2 21.44%

Revenue 5405 4759.3 13.57%

Expenses 3897 3664.2 6.35%

Ad Revenues 2476 1979.6 25.08%

Subscription Rev

2435 2409.8 1.05%

DTH Subscription

514 467 10.06%

Star TV Launched in 1991 Leading the Indian television industry for 5 yearsExpected to continue growing rapidly and reach

INR 371 billion by 2010 Extended business to filmed entertainment,

television production, cable systems and wireless and digital services in Asia in partnership with other companies

Employees at STAR is approximately 1,800 in Hong Kong, India, Taiwan, Mainland China, Dubai, Singapore, Korea, the Philippines, Pakistan, Thailand, Japan and London

OPPORTUNITIESSTAR has expanded by launching several regional

channelsPrime source of growth, as much of the untapped

potential is in the rural markets

Sony PicturesSubsidiary of Sony Corporation of AmericaProvides entertainment to about 130 countriesSpecializes in Movies, Television, Home

Entertainment and GamesAvailable on the World Wide Web

SWOT analysis of Zee Entertainment

Strengths

•High viewership ratings•Complete bouquet of channels•High subscription revenues

Weaknesses

•Lagging behind Star Plus•Problem of attrition•Increase in operating costs

Opportunities

•Benefit from the robust growth of the Entertainment and Media sector•Digitization

Threats

•Slowdown in India's economic growth•Increased competition•Declining viewership and revenue share of GEC channels

Rating Points & Market Share

Indian Film Industry

Raja Harishchandra (1913), by Dadasaheb Phalke, was the first film made in India.

Largest in the world in terms of number of films produced per year.

FICCI-KPMG study values US$ 2.11 billion and projects growth at 9.1 per cent till 2013.

Contd…

90 years old, accorded the status of industry only in 2000.

Has 11500 existing screens, 95% are standalone, single screens.

China - 65,000 screens & US - 36,000.

Growth Drivers Increasing investment in film production

Reducing shelf life of movies making multiplex

the ideal format for distributors

Encouraging regulatory environment

People willing to pay for quality

Risk & ConcernsSlowdown in content supply

Alternative entertainment avenues

Mall development delays

Uncertainty over entertainment tax

Great success of IPL

Breakup of Indian films market

Source: IMaCS Analysis, Industry estimates

54 %

2%2%10%

17%

15%

1% 8%

Hindi Crossover Hindi

Tamil Telugu

Foreign Malayalam

BengalI Others

Key Players in Multiplex

PVR Cinemas

INOX Leisure

ADLABS Films

FAME India

CINEMAX

PVR Cinemas

JV between Priya Exhibitors Private Limited and Village

Roadshow Limited

began its commercial operations in June 1997

As of 2009, PVR has a total of 106 screens in 26 multiplexes

across India

India's largest multiplex, PVR Bangalore, which has 11

screens.

PVRAggressive expansion plans-100 screen in coming

two years

Leading Multiplex operator- 18 million patrons in

FY08, highest numbers among all the multiplex

players

Entertainment tax burden to decline

INOX Leisure

Diversification venture of the INOX group into entertainment and is a subsidiary of Gujarat Flourochemicals Ltd.

first multiplex in Pune in 2002

operates 29 multiplexes and 105 screens in 20 cities

INOX Leisure

Expansion in tier I and tier II cities

Top 25 cites - compelling growth stories Crisil

Research

E-Tax exemptions- operates 29 properties but

pays entertainment tax only on 10 of them

ADLABS Films

In 2001, the company entered the burgeoning

multiplex business

Key player - production, distribution, exhibition

400 screens spread across India, US, Malaysia

and Mauritius.

Has produced like Gangajaal, Namastey

London, Singh is Kinng etc.

ADLABS Films

Integrated Play on the M & E Sector – gives

competitive edge at each level of the value chain

Expansion through acquisitions – acquired Rave

cinema & Lotus Five star

Future Plans - to release 6-7 movies per year

MEDIA

PRINT ELECTRONIC

INTERNETRADIO

THE TIMES GROUP

THE HINDU GROUP

INDIAN EXPRESS GROUP

INDIA TODAY

BUSINESS WORLD

OUTLOOK

THE ECONOMIST

AAJ TAK

NDTV

CNBC TV 18

Z NEWS

STAR NEWS

NEWSPAPER MAGAZINE TV

Print MediaCurrent size: Rs 10,900 crore CAGR: 12% Projected size by 2010: Rs 19,500 crore

With the literate population on the rise, more people in rural and urban areas are reading newspapers and magazines today

Print Media

1.Newspaper First printed newspaper of India was in English

edited & published by James Augustus Hicky on 29th January 1780.

Was named ‘Bengal Gazette’ which came out

Digdarshan was the first Hindi newspaper - April 1818

Top key playersNews paper

playersFounded

Avg. Daily Circulation

(2008)

IRS (2008)

Times of India 1838 3.14 million 13.3 million

The Hindu 1875 1.45 million 5.2 million

Hindustan Times

1924 1.14 million 4.8 million

Electronic Media

News Channels

Continues to grow at 8-10 per cent annually

About 10-12 per cent of total advertising money

spent on television goes to news channels.

In 2007 news channels generate about Rs 7

billion in advertising revenues, compared to Rs

6.2 billion in 2006

•Aaj Tak

•CNBC TV 18

•CNN

•Headlines today

•NDTV

•Star NEWS

•Zee News

NDTVFounded in 1988 by its current chairman and

director, Prannoy Roy, an eminent journalist.

Has more than 1,000 employees

Its three national news channels NDTV 24/7,

NDTV India, and NDTV Profit

ZEE NEWSLocated in Mumbai a 24 hour Hindi news channel

and is a part of Zee News Ltd (ZNL).

Comprise of hard news, social service programmes, crime related news, lifestyle, sports, entertainment, business and health related news as well.

CNBC TV 18CNBC TV18 is a business news channel, a joint

venture of CNBC and Television 18 India Limited, and is considered as India`s number one news medium.

Currently, CNBC TV18 is available in over 28 million households in India.

STAR NEWSStar News, a 24-hour Hindi news channel offers

its viewers news that is relevant to contemporary India. The programming of this channel covers the full spectrum of news ranging from politics to business.

Launched in the year 1998, Star News was previously a bilingual channel when it was in partnership with NDTV, featuring news in both- English as well as Hindi.

AAJ TAKLaunched on 31st December 1999 premium 24-

hour Hindi news channel.Reach of more than 45 million viewers in India.Found a place in the Limca Book of Records, the

Indian equivalent of Guinness Book of World records.

Recognised for the receiving the highest number of SMS-s as responses to contests, poll, etc.

Relative Shares of Hindi News Channels (2008)

Relative Share Of English News Channels (2008)

CONTD……

Careers for MBA’s in M & E industry

Event Management Production Management Celebrity management Brand Management Business Development &

Consulting

Event Manager: To coordinate activities of staff and convention personnel to make arrangements for group meetings and conventions

Marketing Manager, Media: To determine the demand for products and services offered and identify potential customers

Channel Sales Manager: Ensure execution of the developed sales strategies, plans and advertising or promotional programs

Business Development Manager: To Plan, direct, or coordinate the operations & develop strategic alliances and partnerships for Media And Entertainment companies

Journalist:Collect and analyze facts by interview, investigation, or observation. Report and write stories for newspaper, news magazine, radio or television

Brand Manager: To maintain and promote brand names through various methods

Production Management- To help in the production of films, serials, news and entertainment channels

Entertainment Industry

Internet Advt.

Media Network Industry

Printing & Publishing Industry

Primary InformationsDNA (Newspaper): DNA (Mumbai) launched its

first edition on 30th July (2005) targeted at a young readership

Merger of SL Media (49%) & Bhaskar GroupStarted in Pune with 25,000 copies & currently

touched 1,00,000 copiesNo. 2 in Pune: TOI - 1.5 lacs subscription DNA- 1 lac subscription

Challenges: Brand name of TOI Attracting readersStrategy: Yeraly subscription with Rs 299 Initially targeted young readers now

focusing family readers alsoFuture Plan: Expansion in DelhiMBA opportunities: Yes & they also provide SIP

Sakaal TimesSakaal Media Group established in 1932 Earlier known as “Maharashtra Herald” focused

mainly on local news7th May, 2008 relaunched as Sakaal Times as a

national newspaperChallenges: TOI-Pune mirror launched at the same

timeStrategy: 1 Year subscription at Rs. 299 News for Women, Health, International & Lifestyle & discontinued Health &

International

Contd…..Impact of Economic SlowdownHad to close down the newly opened office in

DelhiAd income declined sharply

Opprtunities: Yes, they do recruite MBA & provide Internship also except editorial

ConclusionThe future depends on the growth of Indian

economy industry is expected to grow at an annual growth

rate of 19% to reach Rs 83,740 crore by 2010The expected CAGR of various segments of M & E

industry in India till the year 2010 is as follows:Radio - 32%

Music - 1% Television - 24% Film Industry - 18% Print Media - 12%

Presented by Yugesh Kumar Dubey