utv strategies

8/8/2019 Utv Strategies

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COMPANY IS IN FILMPRODUCTION(NATIONAL/INTERNATIONAL),

DISTRIBUTION,BROADCASTING,

DUBBING,GAMING,ANIMATION,INTERNET..

STARTED TV CONTENT PRODUCTION fromDoordarshan.

INCORPORATED IN 1990 BY ROHINTON. IPO IN YEAR 2005. LISTED ON LONDON ALTERNATE STOCK

EXCHANGE,BSE and NSE.

LAUNCHED HUNGAMA CHANNEL IN 2005. DEALINGS WITH FOX,DISNEY,WILL SMITH,SONY RANG DE BASANTI,KHOSLA KA GHOSLA,JODHA

AKBAR,RACE,TARE ZAMEEN PAR, METRO,LAQSHYA,SWADES.from its stable.


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OVERVIEW of MEDIA &

ENTERTAINMENT INDUSTRY Global entertainment industry - US$ 1.8

trillion by 2015.

Indias contribution will be about US$200B

Growth of 17% in 2007 (Rs 51,300crores).

Indian Media And Entertainment at

Rs 83,740 crore by 2010 at 19% CAGR.


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Sector Snapshot

One of Fastest growing sector

Penetration of TV & radio in rural area

Use of high technology Rising level of income

Highly fragmented

New distribution channel (Mobile phonesand Internet)

Increasing FDI


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Cont.

Liberalization by the government

Crossover Movies. Multiplexes and growth of industry.

Convergence.


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KEY FACTORS DRIVING M&E

Key Drivers

Consumerism

Advertising spendPricing

Content

Technology

Regulation


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Govt Regulated FDI in various

SegmentsAdvertising , Films, TV Production 100%

Cable (max 49% foreign equity)

DTH (max 49% foreign equity- FDI/NRI/FII)FM (max 20% foreign equity)

Print (100% in Scientific/technical

magazines, periodicals & journals)...26% in news papers (current affairs).


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Integrated Players in Media &

Entertainment Sector

BALAJI TELEFILMS

PRITISH NANDY COMMUNICATION

NETWORK 18

SHREE ASHTVINAYAK

20TH

CENTURY FOX TIME WARNER

NEWS CORP.


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Industry Comparison


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STRATEGIES

What sets apart

UTV believes there are no clear winners inthe GEC space so theircost model is tocreate a bouquet of 4-5 channels for the

cost of 1 GEC.Focus on niche segments.

Presence in multiple regions and genres.

Distribution model.

Co-production strategy.


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UTV MISTAKE

They missed the first wave completely in1994-1995.

But by 2000 they realised that in order togrow they needed to be at the Top end ofthe Value Chain.


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Next to come from UTV

FASHION, Rakeysh Omprakash Mehra'sDELHI 6 and a co-production MAIN AURMRS KHANNA starring Salman Khan.

The company's first solo Hollywoodproduction THE EXTERMINATORSstarring Heather Graham.

UTVi with Disney and Business Standard.


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Corporate Structure


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SEGMENT DISTRIBUTION


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Share Price of UTV


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Segment Wise Revenue


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Disney UTV Deal


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Disney Connection

Disney acquired initial stake of 13.7% in mid-2006 and warrants issued to promoters @192.5per share.

Warrants conversion on February 2008. Disney increases its stake in UTV to 32.1% @

860.61 per share.

Disney has to issue mandatory open offer of 20%.

UTV promoters increase its stake to 32.1%.


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Deployment of Funds

$230 mn from Disney and $100mn from Promoters


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Initial Shareholding Structure


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Shareholding Structure


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Growth Drivers

Leadership position in each segment Well diversified business portfolio Revenue

Global: 50% Domestic: 50% Growth Drivers - M&As and existing high growth/scalable verticals

Engrained synergies with global partners /shareholders


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SWOTSTRENGTHS

Strong Distribution Network

Experience of sector

Global presence

Creative and Focused

Strong tie-ups

Diversified group

Targeted content

Key Player as StrategicInvestor

Strong Brand Value

WEAKNESSES

Major revenue from films

Limited exposure to foreignfilm industry.

Late Entrant.


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ContOPPORTUNITIES

Crossover movies

Global investors

Nascent stage of new distribution

channelsRapid de-regulation in theIndustry

Rise in the viewer ship and theadvertising expenditure

Largest in films produced andtickets sold.

Growing middle

Low - high revenues

THREATS

Piracy, violation of intellectualproperty rights.

Global and organized Playerswithin India.

Uncertainty about success in themarketplace in this sector.

Changes in law and regulations.


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BY


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COMPETITIVE FORCES

POTENTIAL

ENTRANTS

SUPPLIER

POWER

INDUSTRYCOMPETITIORS

BUYER

POWER

THREAT OF

SUBSTITUTES


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EXAMPLE for UTV

TURNER-

ALVA,ET,ADAG.

CO-PRODUCERS,

TECHNOLOGY.

PNC,BALAJI,9X,SONY.

CONSUMERS,BROADCASTERS

BRIGHT,

HUNGAMA.

POTENTIAL

ENTRANTS

SUPPLIER

POWER

INDUSTRY

COMPETITIORS

BUYER

POWER

THREAT OF

SUBSTITUTES


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depends on

CREATIVE MANPOWER

INNOVATION TECHNOLOGY USED

FOCUSED CONTENT

REGIONAL PRESENCE


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ANY QUESTIONS

ASK AT:

Corporate OfficeUTV Software Communications Ltd.

Solitaire Corporate Park

Building No. 11, 8 FloorGuru HarGovind Marg

Andheri - ETel. No.: +91 22 40981400

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