MEDIA & ENTERTAINMENT

THE INDIAN

INDUSTRY

INDUSTRY OVERVIEW 1TV

PrintFilmsRadio 3rd

Largest TV

MarketStrong broadcastin

g marketRising no

of subscribe

r

Fast growing animatio

nindustry

Growth in Film

IndustryLaunch of “Digital India”

Revenue to cross Rs 1.9Tn by 2020 –

CAGR 13%

SEGMENTS OF INDIAN ENTERTAINMENT INDUSTRY

45%

27%

14%

2%1%

2% 4%2% 3%

Size of major segments in 2013

TV Print Films Radio MusicOut of Home Animation & VFX Gaming Digital advertising

50%

21%

12%

2%1%

2%5%

2%6%

Size of major segments in 2018E

SOURCE : IBEF

2

NUMBERS SAYS IT ALL !!! 3

17 Billion

200 Billion 127 BillionSIZE 2013 APPROX 422 Billion

PROFITABILITY 5 yr CAGR

14% 10% 10%16%

MAJOR PLAYERS

Print Film MusicTelevision

4

5TELEVISION

Value Chain

Content Providers

Broadcasters

Multi System Cable Operators

Local Cable Operators

793 Registered

187 pay channels

155 million households

Subscriber

Direct To Home [DTH]

Commissioned & Sponsored Programmes

Terrestrial & Satellite Broadcasting

Ad Revenue &

Subscription Revenue

Expected Growth11-13%

TELEVISION industry revenues

2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E126 137 149 167 191 218 244 272 303 334226 246 276 310 353

397453

523600

677

Television Industry Revenue [In Billion]

Advertising Subscription

6

RADIO & MUSIC

PrivatizationFM

Phase 1 -99Phase 2 -05Phase 3 -08

1935AIR

Over 240 Private FM

radio stations

Cost effective,

Low Content

Cost

Hindi music

dominating the music

industry

Piracy Issues

Impact of Digital

Technology

Changing business models to face new

reality

7

2009 2010 2011 2012 20130%

20%

40%

60%

80%

100%

120%

3% 3% 2% 1% 1%

55% 51% 43%30% 29%

37% 38% 50%65% 65%

5% 7% 5% 5% 6%

Audio Cassettes CDs Digital Music Royalty Fees

Revenue breakup

FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16P FY 17P0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

0%

5%

10%

15%

20%

25%

30%

35%

40%

19%

26%

32%

24%

25%

30%

33%

33%

34%

Operating Revenue OPBDIT OPM

OPERATING REVENUE TREND FOR RADIO [In BN] 8

PRINT - NEWSPAPER

Highly Fragmented

Industry

Non-English - Higher

readership to circulation ratio

72 million copies [2013] SUPPL

YCHAIN

Newspaper

Publisher

Distributor

Vendor

REVENUESTREAMS

Sale of

papers

Ads

9

NEWSPAPER – NON ENGLISH [In bn]

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16P FY 17P 0

5

10

15

20

25

30

35

40

0%

5%

10%

15%

20%

25%

30%

35%

2124

2731

34

6 6 8 9 108 8 811 13

31%

26%24%

27%29%

29%

30%

Advertising Circulation EBIDTA OM

11

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16P FY 17P 0

10

20

30

40

50

60

70

80

0%

5%

10%

15%

20%

25%

30%

35%

52 56 5765 70

6 7 7 8 919 16 16 20 23

32%

25% 25%28% 29% 29%

29%

Advertising Circulation EBIDTA OM

NEWSPAPER – ENGLISH [IN BN] 10

FILMS

Theatrical

revenue

drives the

industryVALUE CHAIN

Producer

Distributor

Exhibitor

Revenue –

Producer

Theatre

Oversees

Satellite

MusicDigital

Revenue –

Distributor

Ticket sales

Minimum

guarantee +

royalty model

Commission

Model

Outright sale

Revenue –

Exhibitor

Ticket salesFood

AdsSpace

Multiplexes

to be key

growth

driver

REVENUE BREAKUP

2009 2010 2011 2012 20130.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

75.1% 73.6% 72.1% 73.7% 76.2%

6.9% 7.7% 7.9% 7.6% 7.3%6.9% 8.4% 9.6% 9.6% 11.0%9.3% 8.4% 8.4% 6.9% 4.9%1.8% 1.9% 2.0% 2.2% 0.6%

Domestic box office Oversees box office C&S rightsHome Video Ad revenue

GOING DIGITAL 13

SUB

SEGMENTS

PAYMENT

MODELS

SEARCH

DISPLAY

OTHERS

CPM

CPC

CPACPE

GROWTH

DRVERS

Drop in smartphone prices

Increase in consumer acceptabili

ty

current trendsAnimation , VFX, Post-Production

2010-14 Animation CAGR 7%

2010-14 VFX CAGR 26%

Disney, Viacom 18, Turner, SunInnovative branding campaigns

Out Of Home Advertising

2014 - CAGR 14%

CAGR - 9.8% till 2019

Elections, E-Commerce

INR 22Bn Spent in 2014

Live Events

2014 - CAGR 13%

Increasing propensity of Gov.

Co’s trying out for new avenues

14

MICE, Event IP, Entertainment Zones

Key challenges 15

Political Issues

Piracy

Content Quality

Innovations Increased penetration of

digital platforms

Measurability

Rising Costs

Piracy

Lack of a robust measurement standard

Reskilling of talent

Competition

Dominance of AIR

The ROAD AHEAD

Ad Revenue – CAGR 13%

Increasing internet penetration

Digital Advertising – CAGR 27.7%

Animation & VFX – CAGR 15.9%

Growing use of analytics

16

PRESENTED BY

Divya Liz George

Dhara B Shah

Mary Monisha

George Jacob

Shankar R14093 14095 141141406014062

SOURCES

CRISIL RESEARCH

IBEF MARCH 2015 REPORT

FICCI KPMG REPORT 2015