indian e&m presentation final

8/14/2019 Indian E&M Presentation Final

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ByRishab Mehra


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General Introduction of theIndustry

Television SegmentFilm Segment

New Media SegmentMy Future Projects


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Overview:

Fastest growing sectors in India; 18%CAGR.

Current size: 14 billion,

Projected size:$25 billion by 2012.


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Live Entertainment

2.5%

Internet Advertising

2%

Outdoor Advertising

2.5%

Print Media

26.2%

Radio

0.8%

Films

19%

Music

2.0%

Television

45%

Television segment:Largest with45% share.

Print media is second with25%.

Films is third at 19%


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Background:Doordarshan:

started off in the early 1980s,

Ramayana and Mahabharat world record in viewership numbers for

a single programSaturation point in the industry led to liberalization.

Post liberalization:

In 1991:Govt. allowed foreign and domestic player for limitedengagement.

1992 Foreign: Star TV, MTV, BBC, Prime Sports. Domestic Zeeand Sun TV

Further years: CNN, Discovery and National Geographic,

Stars expansion with star movies, gold, sports and ESPN.

2001-03 :HBO, Cartoon network, History Channel, Nickelodeon,

VH1, Toon Disney2003- Present: the boom year of news, music and movies


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Types of technologies of television distribution:

B. Cable Television Operators: Orthodox Method, many fragmented small distributors. Many problems such as monopolies, price discrimination, piracy etc

C.Conditional Access System: Digital mode of transmitting TV channels through a set-top box (STB) 25% of the subscribers have upgraded to CAS. Price of STB is the main barrier for growth

D.Satellite Television with Direct to Home: Over 300 TV Satellite television channels are broadcast in India. 6 major DTH provider: Reliance Big TV, Tata Sky, Airtel Digital TV,

Dish TV(Zee), Sun direct, DD Direct Plus. Over 5 million subscribers

E. Internet Protocol Television Mainly government provider in only few cities: BSNL/MTNL Airtel has just started this service in Delhi


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125 m television

households (52%of total homes),and 74 m pay TVhouseholds (60%of TV households)in India.

In 5 years,increase to 170 m(71% of totalhomes), pay TV

households isprojected toincrease to 155 m(70% of TVhouseholds).


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Size & Growth: Segment Size in 2008: Rs. 22,600 Crore ($4.5 billion); Projected size in 2012: Rs. 60,000 Crore ($12 billion)

22% CAGR 2008-2012.


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Major Statistics:

2. Revenue Stats:

Advertising accounts for 33 per cent, while subscription= 60 per cent.

Pay-TV subscription revenues to reach $13 billion by

2018, at CAGR 12% $7.1 billion analog subscription fees,

$5.7 billion from digital TV subscription

$500 million from HDTV, Personal Video Recorder.

TVSubscription

60%

TV

33%

TV Software7%

Advertising


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TV Industry Revenue Break-up

2,8603,237

3,7474,421

5,330

6,556

1,667 1,9002,223

2,668

3,308

4,201

1,067 1,1951,362 1,566

1,8012,089

127 142 162 188 221 266-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2004 2005 2006 2007 2008 2009

USD

Million

Total TV

TV

SubscriptionTV

AdvertisingTV

Softw are


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Audience Metrics:2. DART Doordarshan Audience Research Team

Oldest government owned system.

Still has a monopoly in rural areas.

TAM & INTAM (Indian National Television Audience Metrics) Started by ex-officials of DD. Later got funding and INTAM converted into

TAM

Broke DARTs monopoly and now has become the national metricssystem.

4. AMAP (Audience Measurement Analytics Limited) It was setup by a slew of American NRI investors. It did brake TAMs

Monopoly.

5. BARC (Broadcast Audience Research Council) Still being set-up. It will give real-time audience metrics results.


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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

Genrewise TelevisionViewership Share in India

Mass Entertainment Hindi and regional languagechannels attract almost 80% of the total TVviewership in India.

Niche channels like News and Sports gaining ground.


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Globalization of Indian Television:2. News Corp (Star Network):

About 21 channels in India Entered India in 1991 and has become one of the main players.

3.

Sony Entertainment Television: Entered India in 1995 6 main stream channels, Sony TV: most popular Hindi general channel.

4. Disney Television India Entered in 2004

Have targeted their core audience (children) through two main channels. Planning to launch their brand through television. High growth with low competition in their target segment (kids).

5. Future Player: Warner Bro, Viacom and MGM


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Local Player:

2. DD Network: Government owned oldest network.

Most widely watch network of India.

Strong presence in rural areas.

3. Zee Network: First privately owned domestic network.

Has strong presence in Urban cities.

4. Sun Tv: First major regional network

Mainly popular in southern India.

5. CNBC TV 18 Leading news network after the early 2000 news channel boom.

6. UTV Old content producer but a new network in the industry.

Very innovative with new genre of channels.


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Key Points:

2. Highest revenue segment of the Indian E&Mindustry: 45%

3. Reaches the maximum consumers in India.

4.

Disney is basing the business model aroundtelevision to create brand awareness.

5. Advertising Revenues is slowing down, where assubscription revenues are experiencing highgrowth (only 50% penetration).

6. Experiencing a strong digitalization phase withCAS, DTH and IPTV.

7. FDIs presence is strong and increasing in IndianTelevision industry.


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Background:

2. Was born in the 1895, older than Hollywood.

3. Struggled through the 1920s and 30s. Great Depression and War.4. In 1940s to 60s. Golden Age

Based on social themes mainly dealing with working-class.

Emergence of Parallel Cinema: Indian neo-realism movement.

Distributor controlled the financing system.

5. Modern Cinema: late 60s &70s romance & action film genre prevailed.

Parallel cinema declined.

Studio system collapsed while the Star System emerged.

Star system: Expensive actors, only 50% of financing from

distributors.6. 1980s & 90s:

family-centric romantic musicals (Blockbusters),

Action and Comedy genre also prevailed.


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Introduction:

2. 2000s to present Improvement in technology, Innovative storyline, better quality production. Improved IP protection due to cheap priced DVDs:

Moser Baer. Corporatization: Big players in the picture

New Foreign players: Disney, Warner Bros etc

Consolidation & merging of the film with other segments

Bank financing available. Now officially recognized as aIndustry.

Improving Tax incentives.


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54 %

2 %2 %1 0 %

1 7 %

1 5 %

1 %8 %

H i n d i C r o s s o v e r H i n d i

T a m il T e lu g u

F o r e i g n M a l a y a l a m

B e n g a li O th e r s

Hindi films 45%

Foreign films: mainly Hollywoodhave 2%

Regional: rest of the market

Dubbed Hollywood films a newtrend

Breakup of Indian films market


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Key Players

2.Yash Raj Studio Oldest, most successful, produces mainly blockbuster.

3. Mukta Arts Very similar to Yash Raj.

4. Reliance Big Entertainment (RBE)-Adlabs

RBE acquired Adlabs in 2005 Strong financial back up. Gaining presence in all aspects of value chain. Like an American

studio.

5. UTV Very innovative, high potential studio.

Started as a TV production company, Expanded into various segment of the Value chain.

6. Eros Entertainment: Old distribution company that has expanded into production. Competitive advantage: Strong international distribution network.


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Key Players


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Globalization of Bollywood:

2. General Facts: Going Global

Export of Indian have increase by 60%.

Mainly 30% (America & Canada), 25%(UK), 10%(UAE &Mauritius)

Gaining Foreign capital through London Stock Exchange. For example Eros, Adlabs, India Film Company, UTV etc..

Main stream Actors are working in international films.

3. General Facts: Incoming Global Influence

Major American studios are investing in the local studio.

Increased demand for human resource in skilled fields:VA, Martial Arts

Increase in international production: Cheap skilled labor& Tax incentive

Import of Technology: Ex. Special affects equipment Disne Warner Bros & Son Picture co- roduced Hindi


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Globalization of Bollywood: International

Investment

2. Disney & UTV: Disney invested $160m (owns +59%), But voting rights:

32%

UTV has buy back option of 22%: Next 4 years. UTV own all Indian distribution right of Disney movies.

Disney own world right for UTV movies.

Disney bought a Hungama (strong kids channel) fromUTV.

3. Reliance Big Entertainment: Global Venture Financing Dream Work: initial offer 500 m + 700 m

(Bank financing)

Buying 250 theatres in America

In talk with George Cloone, Tom Cruises companies.


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Key Facts:

Growth rate of 44% CAGR Fastest growing segment in Industry 1% of industrys total revenue.

1. Internet: Key Facts Only 45.3 million active internet users 93% of the users are in urban areas.

Only 37% of Indian Internet users come from Top 10 cities Only 41% prefer to read English 77% home users use a broadband/superior connection.

2. Mobile Phones: User Base: 362.3 million 771m users by 2013 @ 14.3% CAGR World fastest growing telecom industry 70% of the Music Revenue come from ring tones. UTV launches an exclusive music mobile channel.


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ORBs Opportunities in this Industry.3. Material for creating global content

Mythological story/character.

Traditional cultural stories & characters.

Traditional art form & their stories Such as Yoga,4. Strategic Partners

For co-production

For Distribution (India and Abroad)

New media content & distributionFinancing

indian e&m presentation final

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