a study on the indian media & entertainment industry
TRANSCRIPT
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