media and entertainment industry
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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
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