market research reports : fm radio broadcasting market in india 2013

FM Radio Broadcasting Market in India

February 2013

2FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

SAMPLE

Executive Summary

Market

Drivers & Challenges

Competitive Landscape

Drivers– Increase in FM penetration– Increase of advertising– Increase in usage of mobile phones –Demographical alterations–Political advertising– Introduction of new performance measurement tool

Challenges–Lack of content differentiation

–Presence of few channels

Major Players

Company 1 Company 2 Company 3

Company 4 Company 5 Company 6

Distribution of radio sets coming under welfare schemesFM radios increase ambit to broadcast newsRise of internet radio

Trends

Government to monitor content

Radio forms a part of religious missions across the country

FM radio in DTH services

FM Radio Broadcasting, a sub‐set of Media and Entertainment is slated to grow at y1% y‐o‐y The radio sector consists of ‐ private FM radio stations over and above the public service broadcaster All India RadioGovernment’s recent approval of introducing Phase III auctions has opened avenues for more private channels to operate in this space


•IntroductionParent IndustryFM Radio

•Market Overview•Phase III•Rural Scenario•Drivers & Challenges•Government Regulations•Trends•Competitive Landscape•Strategic Recommendations•Appendix


SAMPLE FM broadcasting is deemed as a highly profitable sector in the …

FM Radio Broadcasting – Indian Market Overview (1/2)

•The radio sector consists of ‐ private FM radio stations over and above the public service broadcaster All India Radio

•AIR boasts of having the highest network of ‐broadcasting centers with ‐medium frequency (MW), ‐ high frequency (SW) and ‐ FM transmitters

•Embargo on broadcasting news and current affairs has also been lifted

•Limit for Foreign Direct Investment has also been raised from the earlier a1% to that of a2%

FM Radio – Geographical Coverage Private FM Stations – Growth

INR bn

0

g

2016e

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2015e

e

2014e

d

2013e

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2012

b

2011

a

FM Radio – Market Size & Growth

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No

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2011

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2010

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2009

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2008

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SAMPLE Grant of FM radio channels has certain financial parameters that need to be adhered to

m7

Minimum Net Worth required as per city category in each region

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m8m2

m9m3

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m11 m5

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SAMPLE … riding high on the adoption of mobile phones across the rural communities

FM radio penetration in rural areas has been conditioned by prominent adoption of mobile phones

•The penetration of mobile phones in rural market has ushered in a new lease of life to FM stations of All India Radio

•Listeners’ base has been steadily increasing in the last 4‐5 years ever since mobile phone started having radio as an option

•Apart from adding to the numbers, phones also created provisions for a two‐way communication between listeners and organizers during times of live phone‐in programmes

A significant move in this respect will be the emergence of community radio that is designed to be for and by the community present across the rural boundaries in the country

mn

0

x

Oct 2012

z

Sep 2012

y

Rural Wireless Subscribers in India (2012)


Drivers & Challenges – Summary

Demographical alterations

Political advertising

Drivers

Increase in FM penetration

Increase of advertising

Increase in usage of mobile phones

Introduction of new performance measurement tool

Challenges

Lack of content differentiation

Presence of few channels


SAMPLE

Radio is considered to be a cheap medium of advertising as compared to print and electronic media

• Radio advertising is considered as a cheap mode of advertising having several advantages

• Advertising in radio is less expensive as compared to that of advertisements in newspapers or even television commercials

• Radio carries a distinct benefit as compared with electric or branded advertisements since listeners attach a lot of importance owing to the incidence of repetition

• Radio being the best local media available to connect with people even in far‐flung areas has made it a preferred medium for political parties

• Gradual emergence of radio as an effective advertising medium has led to the growth of the FM broadcasting on the whole

ImpactIncrease of advertising

Radio Advertising in India – Growth

INR bn

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2016e

r

2015e

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2013e

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2012e

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2011

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Radio Advertising Volume – Growth

%

0

Non‐Metros

t

Metros

s


Government Participation – Summary

Initiatives

Ministry of Information and Broadcasting

Telecom Regulatory Authority of India

FM channels are warned against airing vulgar content


SAMPLE Ministry of Information and Broadcasting forms the apex body that governs this sector

Ministry of Information and Broadcasting

• The Ministry of Information and Broadcasting plays a significant role in disseminating free flow of information through mass communication media comprising radio, television, films, press, publications, advertising and traditional mode of dance and drama

• It forms the apex body for formulation and administration of rules and regulations and laws related to information, broadcasting, press and films

• Is also responsible for international co‐operation in the field of mass media, films and broadcasting as also interacts with its foreign counterparts on behalf of the Indian Government

•Xx•Xx•Xx•Xx•Xx•Xx

•Yy•Yy•Yy•Yy•Yy•Yy•Yy

VISIONOBJECTIVES

11FM RADIO BROADCASTING MARKET IN INDIA 2013.PPTFM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

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Distribution of radio sets coming under welfare schemes

FM radios increase ambit to broadcast news

FM radio in DTH services

Rise of internet radio

Trends – Summary

Key Trends

Radio forms a part of religious missions across the country

Government to monitor content


SAMPLE A latest concept that is slowly getting popularized is the emergence of internet radio

• The internet radio has emerged as one of the fastest growing medium in the country as almost every medium hankers to get into the digital bandwagon

• The rise of internet and mobile has compelled FM radio to look beyond their existing ambit and spread wings online

• Internet radio comes as a huge relief from lack of content differentiation as it promises variety in music and non‐music content

Rise of internet radio

• p1

• p2

• p3

• p4

• However, a big reason of concern for internet radio is the access to bandwidth• Since broadband connection is always is needed for internet radios and while it can work on computers, it cannot work too well on mobile devices


SAMPLE Public: Domestic Company – Company 1 (1/4)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Products & ServicesName Designation

Person 1 D1

Person 2 D2

Person 3 D3

Note: The list of products and services is not exhaustive

India Head Office

Corporate Address

Tel No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange


SAMPLE Financial Snapshot Key Ratios

Financial Summary

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn) ‐

Total Enterprise Value (INR mn) ‐EPS (INR) ‐PE Ratio (Absolute) ‐

Improved Decline

Net Profit/Loss

Total Income

2010

on

ProfitINR mn

RevenueINR mn

0

2012

p

20112009

m

Particulars y‐o‐y change (2012‐11)

2012 2011 2010 2009

Profitability RatiosOperating Margin 6.84 20.93% 14.09% ‐1.10% ‐13.55%

Net Margin 13.67 17.37% 3.70% ‐3.56% ‐13.60%

Profit Before Tax Margin 15.75 24.56% 8.81% ‐4.52% ‐16.49%

Return on Equity 5.51 8.76% 3.25% ‐3.74% ‐14.47%

Return on Capital Employed ‐1.65 14.96% 16.61% ‐1.15% ‐12.08%

Return on Working Capital 10.69 20.03% 9.33% ‐14.82% ‐45.34%

Return on Assets 7.12 10.77% 3.65% ‐2.64% ‐8.93%

Return on Fixed Assets 69.87 95.26% 25.39% ‐11.15% ‐37.35%

Cost RatiosOperating costs (% of Sales) ‐7.62 78.26% 85.88% 101.12% 114.08%

Administration costs (% of Sales)

14.96 29.74% 14.77% 15.01% 22.14%

Interest costs (% of Sales) ‐0.76 0.00% 0.76% 3.17% 3.92%

Liquidity RatiosCurrent Ratio 48.67% 5.07 3.41 1.62 1.75

Cash Ratio 137.44% 3.32 1.40 0.36 0.51

Leverage RatiosDebt to Equity Ratio ‐22.87% 0.13 0.17 0.41 0.62

Debt to Capital Ratio N.A. N.A. N.A. 0.08 0.23

Interest Coverage Ratio N.A. N.A. 18.49 ‐0.35 ‐3.59

Efficiency RatiosFixed Asset Turnover ‐22.93% 5.28 6.85 3.08 2.64

Asset Turnover ‐39.39% 0.60 0.98 0.73 0.63

Current Asset Turnover ‐49.94% 0.89 1.78 1.57 1.37

Working Capital Turnover ‐55.93% 1.11 2.52 4.09 3.21

Capital Employed Turnover ‐44.65% 0.49 0.88 1.03 1.02

• The company incurred a net profit of INR x1 mn in FY 2012 and INR x2 mn in FY 2011

• The company reported total income of INR x3 mn in FY 2012, registering a decrease of x4% over FY 2011

• The company earned an operating margin of x5% in FY 2012 an increase of x6 percentage points over FY 2011

• The company reported debt to equity ratio of x7 in FY 2012, a decrease of x8% over FY 2011

Public: Domestic Company – Company 1 (2/4)


SAMPLE Key Business Segments Key Geographic Segments

Description Details

Overview

•Operates under y1 and was founded when y2FM frequencies in y3 cities of India were auctioned by the Government

•Has presence in y4cities across India including y5, y6, y7, y8•Has posted a net profit of INR y9 mn for the quarter ended Sept2012 as compared to the net profit of INR y10 mn earned in the corresponding period a year ago

Key Recent Developments (1/2)

2012

b4

a4

2011

c3b3

a3

2010

c2b2

a2

2009

c1

b1

a1

2012

b8

a8

2011

b7

a7

2010

b6

a6

2009

b5

a5



SAMPLE Key Recent Developments (2/2)

Description News

Services

• Besides operating as a terrestrial radio station, it has ventured into internet radio through a partnership with y11, the online music portal of y12

•Have also earned a name in being the leaders in awareness and recall in Dubai, Abu Dhabi, Sharjah and Al Ain as per their internal research

Recent Update

•Has hosted a premiere night of y13 and y14 which is one of India’s biggest hunts for aspiring DJs The contest aims at bringing the best out of DJs as they are required to mix beats in a thematic contest



SAMPLE

Key People

Products and Services

Company Information Offices and Centres – India

Registered Address

Tel No.

Website


Registered Address

Category Products/Services

Services FM Broadcasting

Private: Domestic Company – Company 2 (1/3)

Name Designation

Person 1 D1

Person 2 D2

Person 3 D3


SAMPLE Financial Snapshot Key Ratios

Financial Summary

• Company incurred a net profit of INR ‐mn in FY 2011, as compared to net loss of INR ‐mn in FY 2010

• It reported total income of INR ‐mn in FY 2011, registering a decrease of ‐% over FY 2010

• Earned an operating margin of ‐% in FY 2011, an increase of ‐ percentage points over FY 2010

• The company reported a debt to equity ratio of ‐ in FY 2011, a decrease of ‐% over FY 2010

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin 6.57 7.99% 1.42% ‐3.38% ‐0.93%

Net Margin 7.31 3.82% ‐3.49% ‐8.02% ‐3.93%

Profit Before Tax Margin 7.31 3.82% ‐3.49% ‐7.37% ‐3.48%

Return on Equity 56.86 26.41% ‐30.45% ‐59.46% ‐16.85%

Return on Capital Employed 25.31 33.16% 7.85% ‐31.97% ‐13.67%

Return on Working Capital 34.30 20.07% ‐14.24% ‐41.18% ‐26.34%

Return on Assets 12.71 6.62% ‐6.09% ‐15.69% ‐8.04%

Return on Fixed Assets 59.56 33.66% ‐25.89% ‐59.81% ‐26.22%

Cost RatiosOperating costs (% of Sales) ‐6.57 92.01% 98.58% 103.38% 100.93%

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) ‐0.74 4.18% 4.91% 3.99% 2.54%

Liquidity RatiosCurrent Ratio ‐3.51% 1.57 1.62 1.48 1.36

Cash Ratio 46.55% 0.94 0.64 0.51 0.54

Leverage RatiosDebt to Equity Ratio ‐25.34% 2.98 4.00 2.79 1.09

Debt to Capital Ratio ‐6.36% 0.75 0.80 0.74 0.52

Interest Coverage Ratio 561.51% 1.91 0.29 ‐0.85 ‐0.37

Efficiency RatiosFixed Asset Turnover 18.98% 8.82 7.41 7.46 6.68

Asset Turnover ‐0.42% 1.735 1.742 1.96 2.05

Current Asset Turnover 21.46% 1.90 1.57 1.67 1.76

Working Capital Turnover 28.96% 5.26 4.08 5.14 6.71

Capital Employed Turnover ‐20.61% 6.92 8.72 7.42 4.29

Improved Decline

Profit / Loss

Total Income

2008

f

2009

g

2010

ProfitINR mn

Total IncomeINR mn

0

2011

he



SAMPLE Key Recent Developments

Description News

Overview

• Is an undertaking of the g1 and started off initially as a talk‐based FM Radio Channel in India

• Formerly it was known as g2 which broadcast in major cities namely g3, g4

• Sept ‐ witnessed the change of its name to g5 as also to a different format

Services • Boasts of being ahead than Big FM in terms of the latest RAM ratings in Delhi

Recent Update

•Has tied up with g6 that provides shelter to unprivileged girls and has managed to organize events wherein Bollywood actors have participated

•Has also launched a Bollywood based content segment designed especially for fans who are foodies named g7

•Has recently started its hunt to find the new voice of Mumbai wherein it is providing a platform for fresh radio talent to demonstrate their wit, communication skills and entertain the city through the g8 in Mumbai The winner of this RJ Hunt will be provided with an opportunity to become a professional RJ with g9



SAMPLE Regional Players (2/4)

Company 3

Corporate Information Key People

Name Designation

‐ -‐ ‐

‐ ‐

‐ ‐

Business Highlights

• Is a commercial FM wing of the media conglomerate of z1

• Is available in the frequency of z2 and has presence in z3 states of z4, z5, z6, z7

• Follows the format of CHR (Contemporary Hit Radio) format wherein it focuses on belting out the latest and best commercial hits The playlists include Bollywood, Bhangra and hit local music

•Has also launched a reality show z8 across its nine stations wherein it looks at finding potential singers of tomorrow

Registered Address

Tel No.

Website



SAMPLE

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

Other Players (1/4)

Company FM Frequency No. of Stations Business Description

Company 4 p1 p5

• It broadcasts in ‐

• It also offers –

• It is promoted by ‐publications in ‐

Company 5 p2 p6

• It is based in ‐• Its on‐air presentation language of the station is in ‐ and is the only private station to do so

• All the radio content are based on extensive research from local research studies and its ‐ pre launch campaign

Company 6 p3 p7

• ‐ started its service on ‐• It is a private FM radio station for the state of ‐, operated by the ‐

• Services in ‐, ‐

Company 7 p4 p8

• It is an educational FM radio station in several cities of India

• Operate as ‐ with day‐to‐day programmes contributed by educational institutions, NGOs, government and semi‐government organizations, UN agencies, Ministries

•Medium of broadcast is English, Hindi or regional language

• Broadcasts through radio network of ‐


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