Media & Entertainment

ROADMAP
Overview of Indian Media & Entertainment Industry Entertainment sector

India Film Industry Multiplex

Media Sector Career opportunities for MBAs in this industry Primary Information

Indian Media & Entertainment Industry - Zooming ahead

Current 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 constituents
Breakup of Indian Media & Entertainment Industry Outdoor Advertising 2.5% Internet Advertising Live Entertainment 0.3% 2% Television 41.9%

Print Media 30.9%

Radio 0.8% Films 19.3% Music 2.0%

Key Drivers of the Indian M&E Industry

Regulation

Content

Consumerism

Key Drivers

Pricing

Advertising spend

Technology

FDI Regulations for Indian M&E Industry1

Guidelines for Foreign Direct Investment in the Indian M&E Industry

1. Advertising upto 100% through the automatic route

2. Films

3. Print Media

for the full value chain like film financing, production, distribution, exhibition and marketing upto 100% (a) up to 100% in publishing/printing scientific & technical magazines, periodicals & journals (b) up to 26% in publishing News Papers and Periodicals dealing in News and Current Affairs subject to a few conditions

Source: IMaCS Analysis

FDI Regulations for Indian M&E Industry2

Guidelines for Foreign Direct Investment in the Indian M&E Industry

a)TV Software Production 100% foreign investment allowed subject to a few conditions
b) Setting up hardware facilities, such as uplinking, HUB, etc. upto 49% paid up share capital

4. Broadcasting

c) Cable Network upto 49% of paid up share capital.

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

e) Terrestrial Broadcasting FM to 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 Satellite FDI up to 74% is permitted with prior Government approval
Source: IMaCS Analysis

WEAKNESSES 1)Highly Fragmented 2) Lack of Cohesive Production & Distribution Infrastructure 3) Lack of Efforts for Media Penetration

OPPORTUNITIES 1) Concept of Crossover Movies 2) Poor Sections of the Society 3) New Distribution Channels 4) Rapid Deregulation 5) Rise in Viewership 6) Technological Innovations like Animations

STRENGTH 1) Vast Customer Reach 2) Growing Middle Class 3) Change in Lifestyle 4) Technological Innovations 5) Second Largest 6) Low Cost of Production

SWOT Analysis

THREATS 1) Piracy 2)Lack of Quality Content

ENTERTAINMENT

TV
STAR TV ZEE TV SONY PICTURES

MULTIPLEX
ADLABS FILMS PVR CINEMAS

AMUSEMENT PARK
ESSEL WORLD

INOX LEISURE

Porters Five Forces Analysis of Entertainment Industry

Supplier Power

Threats of New Entrants

Competitive rivalry in Industry

Threats of Substitutes

Consumer Power

Bargaining Power of Consumer(High)

Consumer can switch channels

Increased globalization
Availability of a variety of alternative sources of

entertainment

Threat of New Entrants(Low)

High sunk costs High capital requirement

Difficult access to distribution

Steeper 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

What do the viewers watch?

Genrewise Television Viewership Share in India

3%
2% 4%

1% 39%

Mass Entertainment Hindi Film Channels Kids Channels Regional Channels English Entertainment Music Channels News Channels Sports Channels

8%

5%

38%
Source: TAM Media Research

Key Players Indian Television Industry

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 Televisions
Launched in the October 1992 & keeps tab with 167

countries Reach 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 Performance
Ad Sales Up 25%; Net Profit Up 21% in Q2 FY10
Consolidated

Rs. Million Net Profit Revenue Expenses Ad Revenues Subscription Rev DTH Subscription

Sep 09 1109 5405 3897 2476 2435 514

Jun 09 913.2 4759.3 3664.2 1979.6 2409.8 467

QoQ 21.44% 13.57% 6.35% 25.08% 1.05% 10.06%

Star TV
Launched in 1991

Leading the Indian television industry for 5 years

Expected 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

OPPORTUNITIES
STAR has expanded by launching several regional channels
Prime source of growth, as much of the untapped potential

is in the rural markets

Sony Pictures
Subsidiary of Sony Corporation of America
Provides entertainment to about 130 countries Specializes in Movies, Television, Home Entertainment

and Games Available 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 & Concerns

Slowdown in content supply
Alternative entertainment avenues Mall development delays Uncertainty over entertainment tax Great success of IPL

Breakup of Indian films market

1% 15% 45% 8%

1 7% 10% 2% 2%

Hndi i
Taml i Foreign BengalI

Crossover Hndi i
Telugu M layalam a Others

Source: IMaCS Analysis, Industry estimates

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.

PVR
Aggressive 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

NEWSPAPER
THE TIMES GROUP THE HINDU GROUP INDIAN EXPRESS GROUP

MAGAZINE
INDIA TODAY BUSINESS WORLD OUTLOOK THE ECONOMIST

TV
AAJ TAK NDTV CNBC TV 18 Z NEWS STAR NEWS

RADIO

INTERNET

Print Media
Current 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

WEAKNESSES
1) Lack of proper awareness 2) A narrow market segment

OPPORTUNITIES
1) Very growing market of financial 2) Untapped market, so greater market opportunities

STRENGTHS
1) Qualitative content 2) Detailed Analysis 3) Recognized and respected by leaders and industry leaders

THREATS
1) Market increasing satellite 2) Easy accessibility of NEWS

SWOT ANALYSIS

3) Growing competition through new entrants

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

Print Media - Newspapers

Top key players

Avg. Daily News paper Founded Circulation IRS (2008) players
(2008)
Times of India 1838 3.14 million 13.3 million

The Hindu
Hindustan Times

1875

1.45 million

5.2 million

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

Key News Braodcasters

Aaj Tak
CNBC TV 18 CNN Headlines today NDTV Star NEWS Zee News

NDTV
Founded 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 NEWS
Located 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 18
CNBC 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 NEWS
Star 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 TAK
Launched 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 SMSs as responses to contests, poll, etc.

Relative Shares of Hindi News Channels (2008)

IBN 7, 9.40% NDTV India , 7.90% Aaj Tak , 17.40%

Zee News, 9.60% India TV, 18.50% Star News, 14.70%

Relative Share Of English News Channels (2008)

24.8.%
Headlines Today, 10.80%

News X, 9.50%

NDTV 24x7, 30.90%

CNN IBN, 24%

CONTD

Careers for MBAs 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 ManagementTo help in the production of films, serials, news and entertainment channels

Entertainment Industry

Internet Advt.

Media Network Industry

Printing & Publishing Industry

Primary Informations
DNA (Newspaper): DNA (Mumbai) launched its first

edition on 30th July (2005) targeted at a young readership Merger of SL Media (49%) & Bhaskar Group Started in Pune with 25,000 copies & currently touched 1,00,000 copies No. 2 in Pune: TOI - 1.5 lacs subscription DNA- 1 lac subscription

 Challenges: Brand name of TOI

Attracting readers Strategy: Yeraly subscription with Rs 299 Initially targeted young readers now focusing family readers also Future Plan: Expansion in Delhi MBA opportunities: Yes & they also provide SIP

Sakaal Times
Sakaal Media Group established in 1932
Earlier known as Maharashtra Herald focused mainly

on local news 7th May, 2008 relaunched as Sakaal Times as a national newspaper Challenges: TOI-Pune mirror launched at the same time Strategy: 1 Year subscription at Rs. 299 News for Women, Health, International & Lifestyle & discontinued Health & International

Contd..
Impact of Economic Slowdown
Had to close down the newly opened office in Delhi Ad income declined sharply Opprtunities: Yes, they do recruite MBA & provide

Internship also except editorial

Conclusion
The 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 2010 The 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