Presented By:Adhip Varma – 10 DCP-054Ankit Sharma – 10DCP-061Karan Verma – 10DCP-072Kushagra Mathur – 10DCP-074Pradeep Kumar – 10DCP-086Raghav Agarwal – 10DCP-087

INTRODUCTION

UTV Software Communications Ltd, also known as United Television, is an Indian media conglomerate.

It is India’s first integrated global media and entertainment company which has seen rapid expansion recently in various verticals.

UTV has expanded into five verticals namely:BroadcastingGames Content Motion PicturesInteractiveTV Content

It is listed on NSE and BSE. It has subsidiaries with offices across India, UK, US and Japan. Walt Disney Company has a strategic stake in UTV.

TIMELINE

1990: Inception of UTV Group under the Companies Act 1956 as Private Limited Company. It was a culmination of a vision of three dynamic individuals Ronnie Screwvala, Zarine Mehta and Deven Khote.

1991-1992: The group was primarily engaged in production of Television Content for Doordarshan and also production of ad films.

1993: Ventured into acquiring programs from outside producers and marketing air time on their programs.

1995: Launched India’s first daily soap SHANTI. The company also went Public.

1996: UTV contracted with Walt Disney.

1997: Launched the most expensive serial namely, “SEA HAWKS”.

TIMELINE Cont…

1998: The company forayed into animation .

2000: Ventured into co-production

2004: Entered into theatre distribution under the subsidiary UTV communications.

2005-till date: UTV reconsolidated their roots by launching two full time channel namely UTV Bindaas and UTV Movies. The company entered into production of films and is doing it successfully till date.

Economic Fundamentals

Market Structure – UTV operates in an Oligopolistic Market.

Market – Approx. 270 million consumers view UTV branded content as compared to other media content.

Though there are a number of production houses, hardly a handful of 5-7 are in real contention with UTV.

Pricing Strategy – Very Variable; depending upon the potential market and budget allocation.

Entry Barriers – very tough to enter

KEY COMPETITORS

Yash Raj Films DistributionThey are synonymous with leadership in terms of credibility. They have very successfully reached out to the NRI Market and have excelled mainly through credible peer relationships.

Big PicturesHave always been smitten by big names irrespective of qualitative content. Example: Kites and Raavan. Have not been very cost effective.

Shree Ashtavinayak Cinevision Pvt Ltd.Have had a very holistic approach which has resulted in their staggering success, making them one of the biggest production houses.

Percept Picture Co.Have targeted only a niche audience and though their market share is quite small, they are the talked about brand amongst the intellectual strata.

ECONOMIC FACTORS BEHIND COMPETITIVE ADAGE

Innovators- First Mover’s Advantage

Minimized Risks- Calculated Risk

Forged Effective Partnerships

Market Specific Diversification

SHANTI - INDIA’S FIRST DAILY SOAP

FIRST MOVERS ADVANTAGE

MINIMIZED/CALCULATED RISKSUTV entered into co-production of films, thereby minimizing risks.

Along with co-production, UTV made a very systematic foray into film distribution.

FILM PRODUCTION

They announced their arrival into film production with a renewed zeal of patriotism.

CHANAKYA NEETI UTV redefined the rules of the game.

They backed non-commercial films like Khosla Ka Ghosla at a time when the term niche audience was quiet unheard of.

They gave creative freedom to all the technicians they worked with.

FORGED EFFECTIVE PARTNERSHIPUTV forged partnerships with all the ace directors turned producers which

included:

Rakeysh Omprakash Mehra Films

Rang De Basanti

Delhi 6

Ashutosh Gowarikar Productions Pvt Limited

•Whats your Raashi?

•Jodhaa Akbar

Karan Johar (Dharma Productions)The last and the biggest partnership that UTV forged was with Dharma Productions. They replaced Dharma Productions former partner and distributor Yash Raj Films and went on to release:

•Kurbaan

•Wake Up Sid

•I Hate Love Storys

MARKET SPECIFIC DIVERSIFICATIONSUTV has always had the pulse of the audience. They diversified their Motion Pictures Division into other entertainment providing solutions in other media as well.

•UTV SpotboyIt produced Niche cinema like DEV D, Udaan

•UTV Movies Showcased all films under the banner of UTV and achieved high TRPs.

•UTV Bindass Targeted primarily at youth was another channel which consolidated UTVs position in the Television industry

•UTV World MoviesUTV always remained loyal to the niche market as well. International Cinema like French, Dutch films were showcased on this channel.

GROWTH AND CONSOLIDATION STRATEGIESTill date, the company has the following subsidiaries/joint ventures as a part of its consolidation plan.

UTV Motion Pictures (UMP) PLCUTV Software Communications Ltd. holds 76.82% of controlling stake of UMP Plc which in turns holds 99.75 % controlling stake in UTV Motion Pictures (Mauritius) Limited and balance 0.25% is held directly by UTV Software Communications Ltd.

IG Interactive Entertainment Limited It was incorporated on September 6, 2004 with an intention to carry out Film Acquisition, Syndication and Distribution business in the United Kingdom.

UTV Communication (USA) LLC TV (UTV US)It was incorporated on April 26, 2004 with an intention to carry out film acquisition, syndication and distribution business in the United State of America (North America) and other surrounding territories.

UTV TV Content Limited (UTV TV)UTV TV a 100% subsidiary of UTV Software Communications Ltd. It was incorporated on July 9, 2007 to produce, exhibit and distribute TV serials and programs.

First Future Agri and Developers Limited (FFADL)It was incorporated on April 7, 2008. UTV Software Communications Ltd. acquired 100% equity stake in FFADL for a consideration of Rs. 0.10 million, thereby making it a wholly owned subsidiary of UTV Software Communications Ltd.

UTV Global Broadcasting Limited (UGBL)UGBL was incorporated on June 6, 2007 for satellite television broadcasting in India. UTV Software Communications Ltd. acquired 75% equity stake in equity shares of UGBL. UTV Software Communications Ltd. acquired additional 10% equity stake in UGBL from Unilazer Exports and Management Consultants Limited for a total consideration of the stake of the company in UGBL increased to 85%.

UTV Games Limited (UTV Games)UTV Games Limited is a 100% subsidiary of UTV Software Communications Ltd. and was incorporated on September 5, 2008 to carry on the activity of investment holding. UTV Games Limited acquired 80% equity stake in True Games Interactive Inc, (True Games).

UTV New Media Limited (UNML)UNML a 100% subsidiary of UTV Software Communications Ltd. and was incorporated on September 20, 2007 to carry on the activity of designing and maintaining websites.

•UTV is also associated with Verizon, Vodafone and Airtel and over 80 telecom companies worldwide for Mobile game publishing, new media and online gaming.

• UTV is associated with Coke, Pepsi, Hero Honda, HUL, P&G, Cadburys, Airtel, Reckitt Benkiser, Godrej, Johnson & Johnson – for sponsorship and branding relationships across various TV channels and content titles.

• It has a partnership with Virgin Comics to create original superhero franchises across platforms.

• It is also working with Nintendo, Microsoft and Sony Computer Entertainment Inc. in the console gaming business.

UTV ASSOCIATIONS

UTV – CAPTURING India’s High Consumption Growth

Approx. 270 million consumers view UTV branded content as compared to other media content.

In South Asia UTV is the number 1 movie studio, the number 1 games company, the number 1 youth brand and the number 1 content provider.

UTV is also –

•The fastest growing Media & Entertainment company, expecting a 70% growth in 2010-11.

•Ranked No.1 Movie Studio in India in 2010 – in terms of number of releases/ revenue/ box office.

•Into integrated marketing and distribution network with proven ability across 45 countries.  

Revenues FY 2009-10 (Rs. Millions)

Motion Pictures 3745.50

Television Content 817.20

Broadcasting 1634.40

Games 408.60

Interactive 204.30

Total Operating Revenues 6810

Market Capitalization 22650

UTV – Financial Overview

Revenue Break Up

55%

12%

24%

6%3%

MOTION PICTURESTV CONTENTBROADCASTINGGAMESINTERACTIVE

2005-06 2006-07 2007-08 2008-09 2009-100

10

20

30

40

50

60

70

3

36.59

4.48

25.82

58.85

NET PROFIT (In Rs. Cr.)

NET PROFIT

29.90%

19.60%

31.40%

19.10%

PUBLICPROMOTERSDISNEYDISNEY OPEN OFFER

EQUITY SHARES- 40.6 million

GROWTH PLANS

Motions Pictures-•Strongest Base (2010-2011)•Leadership position and strong creative and marketing- to achieve higher growth.

Games-•UTV Indiagames- 3G/Online & Broadband & 4G/DTH/New Technology.

New Media/ Interactive-•Audio and Celebrity- Strong Dominant Positions

TV Content-•Grow on Renewed Base

Broadcasting-•Should see 50% growth on existing channels.

THANK YOU

ANY QUESTIONS?