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 ahead
Current 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 constituents
Breakup of Indian Media & Entertainment
Industry

Outdoor Advertising
2.5%
Internet Advertising
Live Entertainment
0.3%
2%

Television
Print Media 41.9%
30.9%

Radio
0.8%
Films Music
19.3% 2.0%
Key Drivers of the Indian M&E
Industry
Regulation

Consumerism
Content

Key Drivers

Pricing Advertising spend

Technology
 Guidelines for Foreign Direct Investment in the Indian M&E Industry

1. Advertising upto 100% through the automatic route

for the full value chain like film financing,

2. Films production, distribution, exhibition and
marketing upto 100%
(a) up to 100% in publishing/printing scientific &
technical magazines, periodicals & journals
3. Print Media
(b) up to 26% in publishing News Papers and
Periodicals dealing in News and Current Affairs
subject to a few conditions

Source: IMaCS Analysis

FDI Regulations for Indian M&E
Industry…2
Guidelines for Foreign Direct Investment in the Indian M&E Industry
a)TV Software Production
100% foreign investment allowed subject to a few conditions

b) Setting up hardware facilities, such as uplinking, HUB, etc.

upto 49% paid up share capital

4. Broadcasting c) Cable Network

upto 49% of paid up share capital.

d) Direct-to-Home
Maximum foreign investment of 49% paid up share capital
include

e) Terrestrial Broadcasting FM
to 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 Satellite

FDI up to 74% is permitted with prior Government approval
Source: IMaCS Analysis
 ENTERTAINMENT

TV MULTIPLEX AMUSEMENT
PARK

•STAR TV •ADLABS
•ESSEL
FILMS
•ZEE TV WORLD
•PVR CINEMAS
•SONY
PICTURES •INOX
LEISURE
Porter’s Five Forces Analysis of
Entertainment Industry
Bargaining Power of Consumer(High)
 Consumer can switch channels
 Increased globalization
 Availability of a variety of alternative sources of
entertainment

Threat of New Entrants(Low)

 High sunk costs
 High capital requirement
 Difficult access to distribution
 Steeper 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
 Genrewise Television Viewership Share in India
3%
1%
2% 4% Mass Entertainment
8% Hindi Film Channels
39%
Kids Channels

5% Regional Channels
English Entertainment
Music Channels
News Channels
Sports Channels

38%
Source: TAM Media Research
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 Televisions
 Launched in the October 1992 & keeps tab with 167 countries
 Reach 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 Weaknesses
•High viewership ratings •Lagging behind Star Plus
•Complete bouquet of •Problem of attrition
channels •Increase in operating costs
•High subscription revenues

Opportunities Threats
•Benefit from the robust growth of •Slowdown in India's economic
the Entertainment and Media sector growth
•Digitization •Increased competition
•Declining viewership and revenue
share of GEC channels
Financial Performance
 Ad 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 2435 2409.8 1.05%
Rev
DTH 514 467 10.06%
Subscription
Star TV
 Launched in 1991
 Leading the Indian television industry for 5 years
 Expected 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
OPPORTUNITIES
 STAR has expanded by launching several regional
channels
 Prime source of growth, as much of the untapped
potential is in the rural markets
Sony Pictures
 Subsidiary of Sony Corporation of America
 Provides entertainment to about 130 countries
 Specializes in Movies, Television, Home Entertainment
and Games
 Available on the World Wide Web
 SWOT analysis of Zee
Entertainment
Strengths Weaknesses
•High viewership ratings •Lagging behind Star Plus
•Complete bouquet of •Problem of attrition
channels •Increase in operating costs
•High subscription revenues

Opportunities Threats
•Benefit from the robust growth of •Slowdown in India's economic
the Entertainment and Media sector growth
•Digitization •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 & Concerns
 Slowdown in content supply

 Alternative entertainment avenues

 Mall development delays

 Uncertainty over entertainment tax

 Great success of IPL

Breakup of Indian films
market
8%
1%
15%

45%

17%
Hindi Crossover Hindi
Tamil Telugu
10% 2% 2% Foreign Malayalam
BengalI Others

Source: IMaCS Analysis, Industry estimates

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.
 PVR
 Aggressive 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
 MEDI
A
PRIN ELECTRO
T NIC

NEWSPAPE MAGAZIN TV RADI INTERN

R E O ET
•INDIA •AAJ
THE TIMES
GROUP TODAY TAK

•THE HINDU •BUSINESS •NDTV

GROUP WORLD •CNBC TV 18
•INDIAN •OUTLOOK •Z NEWS
EXPRESS GROUP
•THE ECONOMIST •STAR NEWS
Print Media
 Current 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 players
News paper Founded Avg. Daily IRS (2008)
players Circulation
(2008)
Times of India 1838 3.14 million 13.3 million

The Hindu 1875 1.45 million 5.2 million

Hindustan 1924 1.14 million 4.8 million

Times
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
NDTV
 Founded 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 NEWS
 Located 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 18
 CNBC 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 NEWS
 Star 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 TAK
 Launched 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 Informations
 DNA (Newspaper): DNA (Mumbai) launched its first
edition on 30th July (2005) targeted at a young
readership
 Merger of SL Media (49%) & Bhaskar Group
 Started in Pune with 25,000 copies & currently touched
1,00,000 copies
 No. 2 in Pune: TOI - 1.5 lacs subscription
DNA- 1 lac subscription
 Challenges: Brand name of TOI
Attracting readers
 Strategy: Yeraly subscription with Rs 299
Initially targeted young readers now
focusing family readers also
 Future Plan: Expansion in Delhi
 MBA opportunities: Yes & they also provide SIP
Sakaal Times
 Sakaal Media Group established in 1932
 Earlier known as “Maharashtra Herald” focused mainly
on local news
 7th May, 2008 relaunched as Sakaal Times as a national
newspaper
 Challenges: TOI-Pune mirror launched at the same time
 Strategy: 1 Year subscription at Rs. 299
News for Women, Health, International &
Lifestyle & discontinued Health & International
Contd…..
 Impact of Economic Slowdown
 Had to close down the newly opened office in Delhi
 Ad income declined sharply

 Opprtunities: Yes, they do recruite MBA & provide

Internship also except editorial
Conclusion
 The 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 2010
 The 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