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A fortnightly newsletter covering developments in the Indian media industry. The newsletter is free and is also available for download at G2Mi.com. G2Mi.com is a leading website providing …

A fortnightly newsletter covering developments in the Indian media industry. The newsletter is free and is also available for download at G2Mi.com. G2Mi.com is a leading website providing information and analysis on the global media industry.

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  • 1. India Media Monitor India Media Monitor | Fortnightly newsletter on the Indian media industry | Issue No. 2, Published 4th May 2009 | Published by Heernet Ventures Limited (heernet.com) | Selected news GroupM reduces 2009 adspend forecasts Latest Hindi Channel Audience Data (week 17) Commercial exploitation of foreign DVDs is illegal Raj Express launched 2 tabloid newspapers Reliance Big TV plans to sell 49% stake BSNL launches IPTV services in Chennai Walt Disney forms new distribution partnership Number portability service to be launched by September 2009 Data Share price data Deal sheet for 3 months Internet subscriber market Radio audience analysis Advisory services Heernet Ventures publishes this newsletter as part of its research coverage of the Indian media industry. You can access more research on the Indian media industry from our research website at G2Mi.com. If you are a media company or financial investor seeking growth opportunities in the Indian media industry, we can assist you to ensure that you are successful in identifying and executing the best opportunities. With dedicated teams in both London and India, we are well placed to provide ‘on the ground’ assistance and support. We can help you understand the structure of the Indian media industry and the key challenges that exist for foreign investors. We can also assist with deep analysis of key industry segments and assist you in both identifying and negotiating with suitable, local companies. Over the last five years, we have worked on assignments across the publishing, Internet and broadcasting sectors. For an initial discussion, contact Harjinder Singh-Heer on +44 (0) 208 180 7223 or by email on harjinder@heernet.com. © Heernet Ventures Limited. All Rights Reserved
  • 2. India Media Monitor News Media Raj Express launches 2 tabloid newspapers Group M reduces 2009 adspend forecasts Date 27th April, 2009 Date 27th April, 2009 Raj Express, a Madhya Pradesh based Hindi language daily newspaper has launched two new tabloid supplements, R 16 The media agency, Group M has released its latest and Career 8. R 16 is a 16 page, full colour tabloid covering advertising forecasts for 2009. It is forecasting growth of features; Career 8 is an 8 page tabloid focusing on education 4.7% with total 2009 adspend of Rs 237.5 billion. This and jobs. Both will be distributed freely with Raj Express. compares to growth of 14.7% in 2008. Adspend associated with the general election is expected to account for 1.5% of total adspend in 2009. BSNL launches IPTV services in Chennai Segment (Rs billion) 2008 2009F % change Date 27th April, 2009 Newspapers 100.3 98.3 -2.0% The incumbet telecoms operator, BSNL has launched IPTV Magazines 8.5 8.1 -4.7% services in Chennai, under the brand ‘Myway BSNL.’ The Television 84.0 89.9 7.0% service offers 150 channels as well as video and music on Radio 8.8 10.1 14.8% demand. The service has been aggresively priced at Rs 50 Outdoor 14.5 15.1 4.1% per month (or an upfront payment of Rs 2,500). Digital 6.8 8.5 25.0% Cinema 0.8 0.8 0% Retail Media 3.1 3.2 3.2% NDTV publishes full year results General Elections 0.0 3.5 N.A. Date 1st May, 2009 Total 226.8 237.5 4.7% Television broadcaster NDTV declared its annual results for the year ended March 2009. The company increased Latest Hindi Channel Audience Data (week 17) revenues by 34% to Rs 49.2 billion and earned net profit of Date 30th April, 2008 Rs 11.9 billion (compared to a net loss of Rs 18.6 billion in The latest audience share analysis for Hindi language 2007-2008). general entertainment channels shows that Star Plus has Y/e March (Rs billions) 2008 2009 % change regained its No. 1 position displacing Viacom 18’s Colors Revenue 36.6 49.2 34.4 channel. EBITDA -2.2 2.1 N.A Net Profit -18.6 11.9 N.A Channel Gross Rating Point (GRPs) Market Share Source: company data Star Plus 280 24% Colors 256 22% Zee TV 212 18% Channel Eight enters Bengali films’ production Sony 92 8% th Date 30 Apri, 2009 Source: TAM Media, C&S, Age 4+ in Hindi language markets, week 17 Channel Eight Motion Pictures has entered the Bengali film production business. Launched in December 2008 by Commercial exploitation of foreign DVDs is illegal Ashoke Surana the company hopes to meet the growing demand for local language movie and television content. Date 27th April, 2009 The Delhi High Court has declared that importing foreign DVDs and renting them in India is illegal as it constitutes copyright infringement. Thus, renting DVDs that were bought in the US becomes violation of law. But purchasing a DVD from abroad for personal viewing is permissible. © Heernet Ventures Limited. All Rights Reserved
  • 3. India Media Monitor NDTV launches television production house Date 20th april, 2009 Indiatimes forms partnership with Shoogloo The television broadcaster NDTV has announced the launch Date 25th April, 2009 a production company, RedDot Productions. The new unit Indiatimes.in, a leading Indian portal has entered into a will create content for television and interactive media. partnership with the affiliate marketing network Shoogloo Network for the management of advertising inventory on its ecommerce sections. Indiatimes.in is owned by the Indian Zee Entertainment publishes full year results media group, Times of India. Date 29th April, 2009 Zee Entertainment Enterprise Limited has declared its Indiamart.com is leading B2B information website annual financial result for the year ended March 2009. The company increased revenues by 18% to Rs 21.7billion and Date 24th April, 2009 net profit by 31% to Rs 5.2billion. The business information website IndiaMart.com has been identified as the leading B2B information website in India (according to a study by Internet and Mobile Association of Y/E March (Rs billion) 2008 2009 % change India (IAMAI). The website carries information on India- Revenue 1.3 21.7 18.5% based manufacturers and service providers and allows EBITDA 5.4 5.3 -1.1% advertisers to search and respond to leads from companies. Net Profit 3.9 5.2 31.1% The company has a strong regional network with 26 offices Source: ZEEL website in India. Reliance Big TV plans to sell 49% stake Infibeam launches online books store with In.com th Date 29 April, 2009 Date 23rd April, 2009 Reliance ADAG is planning to sell a 49% stake in its DTH The ecommerce website, Infibeam.com has formed a operation, Big TV. The company is rumoured to be in or to partnership to operate an online bookstore on the In.com have held negotiations with a number of private equity funds website. Based in Ahmedabad, Infibeam.com is one of (Carlyle Group, Sequoia Capital, KKR) and a US-based India’s leading retailers of books and electronic goods. DTH operator. The divestment is expected to raise Rs 80 In.com is a portal owned by the Network 18 media group. billion. Internet Walt Disney forms new distribution partnership Date 29th April, 2009 Info Edge publishes full year results Walt Disney continues its expansion in the Indian market. Its Disney Interactive Studios subsidiary has formed a Date 30th April, 2009 partnership with the publishing company, Excel Interactive Online media company Info Edge has declared its annual to distribute DVD-based games and educational materials. results for the year ended March 2009. The company increased revenues by 14.2% to Rs 2.7 billion and net profit by 7.6% to Rs 596.8 million. Y/E March (Rs million) 2008 2009 % change Revenue 2,396.64 2,737.96 14.2 EBITDA 842.04 938.64 11.5 Net Profit 554.88 598.86 7.9 Source: Company data © Heernet Ventures Limited. All Rights Reserved
  • 4. India Media Monitor TechMedia launches online ad booking portal Number portability service to be launched by September 2009 Date 28th April, 2009 Date 30th April, 2009 The Indian company, M&K TechMedia has launched a web- based ad booking service called ReachWide.com. The Number portability will be launched in September 2009 in website simplifies the process for selecting suitable print the metros (Delhi, Mumbai, Kolkata and Chennai) and a media and then creating and booking ads. The company number of other large cities. It will be the first time that claims that its service covers all forms of classified ads Indian mobile users will be able to retain their mobile across the country. numbers even when they change mobile operator. Google India expands its language translation Trai issued directives on VAS services to cover 4 new local languages Date 30th April, 2009 th Date 28 April, 2009 TRAI (Telecom Regulatory Authority of India) has issued a Google India has expanded its language translation services directive which requires providers of mobile data (Value in India to include Bengali, Gujarati, Marathi and Nepali. Added Services) to confirm customer consent before billing for a service. The directive requires the customer to provide their consent by calling a number, sending an SMS or Telecoms making a request in writing, email or by fax. Bharti Airtel publishes full year results Nimbuzz and Tata Indicom into partnership Date 30th April, 2009 Date 23rd April, 2009 India’s largest telecom operator Bharti Airtel published its Mobile operator Tata Indicom has formed a partnership with annual results for the year ended March 2009. The company the mobile content company, Nimbuzz. The agreement will increased revenues by 25.7% to Rs 982.5 billion and net mean that Nimbuzz services are available to Tata Indicom profit by 20.8% to Rs 185.3 billion. subscribers through the mobile portal, Tata Zone. Y/E March (Rs billion) 2008 2009 % change Revenue 781.9 982.5 25.7 Onmobile Global in partnership with Vodafone EBITDA 325.2 400.1 23.0 Date 21st april, 2009 Net Profit 185.3 223.9 20.8 Source: Company data Vodafone has partnered with the indian mobile content company, OnMobile for the provision of mobile content Bharti has also entered into a partnership with Alcatel services to Vodafone mobile subscribers in India. Vodafone Lucent. The partnership will mean that Alcatel Lucent will has 66 million mobile subscribers (Feb 09) and is now the manage and operate Bharti’s landline telecoms infrastructure second largest mobile operator in India covering Internet, IPTV and fixed line services. MTNL plans to launch 3G services in Mumbai Date 18th April, 2009 MTNL will launch 3G services in Mumbai in May. It is forecasting a user base of 100,000 subscribers by year-end. MTNL currently has 4.4 million subscribers. © Heernet Ventures Limited. All Rights Reserved
  • 5. India Media Monitor Share Price Data Company name Reuters Bloomberg Currency Current % Change Code Code price 1 mth 6 mth 12 mth Diversified Media Adlabs Films ADLF.BO ADLF:IN INR 221.20 26.33% 38.25% -71.08% UTV Software Comms. UTVS.BO UTV:IN INR 300.25 42.26% -39.41% -62.65% Broadcasting Balaji Telefilms BLTE.BO BLJT:IN INR 43.65 39.39% -35.81% -74.86% Entertainment Network India ENIL.BO ENIL:IN INR 149.60 30.09% -0.27% -63.16% ETC Network ETNT.NS ETCN:IN INR 66.50 12.43% 0.76% -78.29% IBN Broadcast IBN.NS IBN18:IN INR 88.00 29.41% 0.17% -30.54% NDTV NDTV.BO NDTV:IN INR 101.05 19.44% -2.04% -75.80% Sun TV SUTV.BO SUNTV:IN INR 184.30 8.92% 36.52% -40.81% TV Today Network TVTO.NS TVTN:IN INR 78.20 17.68% 26.13% -38.81% Zee Entertainment ZEE.NS Z:IN INR 113.00 7.11% -19.29% -47.20% Zee News ZEEN.NS ZEE:IN INR 32.75 4.63% -9.03% -46.92% Publishing Deccan Chronicle DCHL.BO DECH:IN INR 60.90 36.24% 48.10% -57.41% Mid day multimedia MIDD.BO MIDM:IN INR 13.40 11.67% 7.63% -59.27% Navneet Publication NAVN.BO NPI:IN INR 51.65 17.12% 21.67% -50.81% HT Media HTML.BO HTML:IN INR 67.00 22.82% -9.64% -53.67% Jagran Prakashan JAGP.BO JAGP:IN INR 60.10 0.33% 19.13% -31.00% Entertainment K Sera Sera Productions KSER.BO GPM:IN INR 10.00 -4.76% -29.08% -67.74% Mukta arts MUKR.BO MUKR:IN INR 39.90 18.40% -27.06% -64.69% Prime Focus PRFO.BO PRIF:IN INR 110.65 24.47% -46.80% -83.36% Pritish Nandy Comm. PNCL.BO PRTN:IN INR 17.85 25.70% 12.62% -66.94% Pyramid Saimira Theatre PYSA.BO PSTL.IN INR 15.00 -0.99% -64.75% -96.09% Crest Animation CRCO.BO CRSA:IN INR 22.20 26.86% -4.10% -67.83% PVR limited PVRL.BO PVRL:IN INR 79.95 0.82% -7.41% -59.86% Internet Info Edge INED.BO INED:IN INR 524.85 23.47% 22.06% -44.34% Northgate Technologies NOTC.BO NORT:IN INR 40.90 25.27% -48.88% -89.78% © Heernet Ventures Limited. All Rights Reserved
  • 6. India Media Monitor Deal Sheet A summary of key deals and joint ventures over the previous 3 month period. Date Sub Sector Investor Investee Terms Details Apr-09 Advertising Future Group Dhar & Hoon 60% stake Future group is a leading Indian retail company which has recently expanded into other sectors, Dhar & Hoon ia a mid- sized advertising company. Apr-09 Television Oman Investment Fund Neo Sports Rs2.58billion Oman Investment Fund (OIF) is an Oman based venture apital (Oman) and 3i Broadcasting company and 3i is an Mauritius based investment company. (Mauritius) Neo sports is owned by Zenith sport subsidary of Nimbus Communication ltd. Neo Sports is owned by Zenith Sports, a subsidiary of Nimbus Communications. At present, it owns the broadcasting rights for a number of domestic and international cricket tournaments in India till March 2010. OIF is also a stakeholder in Nimbus Communications. Apr-09 Outdoor Hype Integracomm Pvt Asawari n.a Hype Integracomm Ltd is a Mumbai based advertising advertising Ltd (India) Publicity company. Asawari Publicity is a Pune based outdoor advertising company. Mar-09 Telecom Telenor International Unitech Rs 61.2 Telenor is the seventh largest GSM operator with operations in (Norway) Wireless billion Asia, Europe and Scandinavia and 143 million subscribers (67.25% (including Bangladesh and Pakistan). Unitech Wireless is the stake) telecom subsidary of real estate company Unitech. The transaction has been completed (it was initially announced in October 2008). Mar-09 Television Sony Picture Television Bangla 100% stake Channel 8 is the only Bengali language based movie channel International (US) Entertainment in India Pvt Ltd Feb-09 Value added New Enterprise ValueFirst US$6 million NEA is a US based venture capital firm. ValueFirst is a Services Associates (US) Messaging Gurgaon based VAS company. Feb-09 Mobile media Astro Group (Malaysia) Mogae Digital US$5million Malaysia based Astro Group operates Pay TV channels and (50% stake) 12 radio station. In India it has interests in DTH, radio and telecoms. Mogae Digital is a mobile media company; the funds will be primarily used for launching networking sites, games and comics for mobile phones. Feb-09 Directory Helion Venture Partners Getit Rs200million Getit is an yellow pages and dirctory service provider. Helion publishing (India) Infoservices Venture partners is India-based venture capital company. Ltd Feb-09 Television Indi Media Company Pvt INX News Rs500million Indi Media is a venture between Vinay Chhajlani (CEO, Nai Ltd (India) Duniaya) and Jehangir S. Pocha. INX News is an English language based news channel. Feb-09 Production India Television (India) Studio n.a India TV is a Hindi language based news channel promoted by Brahma Rajat Sharma. Studio Brahma is an IT solutions company providing 3D animation, multimedia, graphic designs and website development. © Heernet Ventures Limited. All Rights Reserved
  • 7. India Media Monitor Data Internet subscribers in India y-on-y Provider Coverage Dec-06 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 change BSNL National 3,811,852 4,992,485 5,640,191 5,943,093 6,377,051 6,695,196 34.1% MTNL Delhi & Mumbai 1,658,000 1,851,291 1,899,747 1,922,713 1,951,851 2,022,973 9.3% Sify National 805,940 707,609 576,047 564,790 510,071 475,213 -32.8% Tata Communications National 457,481 459,430 448,146 434,640 399,478 N.A. N.A. Bharti Infotel National 597,665 753,754 815,360 871,256 938,251 1,006,688 33.6% Reliance National 540,068 628,832 696,440 824,026 878,252 940,227 49.5% Data Infosys National 102,910 199,854 199,854 199,833 199,819 248,053 24.1% YOU Telecom National 134,620 177,810 185,450 193,157 199,352 200,422 12.7% Hathway Cable National 108,369 175,671 201,212 247,185 288,142 320,437 82.4% HCL Infinet National 41,976 42,490 42,600 42,603 42,367 42,214 -0.6% Icenet National 27,381 1,490 1,490 N.A. N.A. N.A. N.A. Asianet Gujarat 38,765 52,428 55,435 59,761 66,506 71,093 35.6% HFCL Infotel Kerala 30,700 43,689 46,602 51,985 55,868 60,886 39.4% Shyam Internet Punjab 25,409 25,465 25,523 27,568 32,681 32,711 28.5% Tata Teleservices Rajasthan 26,338 18,945 22,606 31,079 41,010 46,287 144.3% Vodafone Essar National 18,001 18,001 18,001 18,001 18,001 18,001 0.0% WWW Comms Delhi 15,408 4,155 4,198 6,179 4,535 4,535 9.1% Hughes Escort National 16,937 22,720 24,387 26,782 26,743 26,743 17.7% Broadband Pacenet Mumbai 13,445 12,999 12,470 12,470 12,470 12,470 -4.1% Spectra Net National 14,763 28,650 31,116 33,078 35,173 32,711 14.2% Others 95,702 145,698 150,624 152,379 164,777 598,294 310.6% Total 8,581,730 10,363,466 11,097,499 11,662,578 12,242,398 12,855,154 24.0% Source: TRAI © Heernet Ventures Limited. All Rights Reserved
  • 8. India Media Monitor Data Radio audience share analysis Audience share data from Week 15 (2009) (12-18 April 2008) Delhi Mumbai Channel Broadcaster % Share Channel Broadcaster % Share Radio Mirchi ENIL 25.9% Red Fm Sun TV, NDTV, Value Labs 15.7% Fever FM HT Music 17.9% Fever FM HT Music 15.5% AIR FM Gold All India Radio 16.2% Radio Mirchi ENIL 14.7% Radio City Music Broadcast Private Ltd 8.7% AIR FM Gold All India Radio 12.7% Red FM Sun TV, NDTV, Value Labs 8.0% Big FM Adlabs Radio 12.7% Radio One Mid-Day Multimedia 6.1% Radio City Music Broadcast Private Ltd 11.9% Big FM Adlabs Radio 5.5% Radio One Mid-Day Multimedia 6.2% Meow FM Radio Today Broadcasting Ltd 4.6% AIR FM Rainbow All India Radio 3.8% Hit FM Clear Media 2.7% Akashvani All India Radio 2.9% AIR FM Rainbow All India Radio 2.7% Meow FM Radio Today Broadcasting Ltd 2.3% Vividh Bharti All India Radio 1.3% Vividh Bharti All India Radio 1.7% Akashvani All India Radio 0.4% Bengaluru Kolkata Channel Broadcaster % Share Channel Broadcaster % Share Big FM Adlabs Radio 21.4% Radio Mirchi ENIL 18.2% Radio Mirchi ENIL 16.2% Big FM Adlabs Radio 16.5% Radio One Mid-Day Multimedia 12.7% Friends FM Ananda offset 14.5% AIR FM Rainbow All India Radio 12.6% Amaar FM Hitz fm 9.8% Fever FM HT Music 12.3% Red FM Sun TV, NDTV, Value Labs 7.8% Radio City Music Broadcast Private Ltd 9.6% Fever FM HT Music 7.6% S FM Udaya TV 8.7% Radio One Mid-Day Multimedia 7.6% Radio Indigo India Radio Ventures 2.6% Meow FM Radio Today Broadcasting Ltd 5.9% Vividh Bharti All India Radio 2.5% AIR FM Rainbow All India Radio 3.5% Gyan Vani All India Radio 0.9% AIR FM Gold All India Radio 3.3% Akashvani All India Radio 0.4% Akashvani All India Radio 2.6% Power FM India fm 1.5% Vividh Bharti All India Radio 1.2% © Heernet Ventures Limited. All Rights Reserved
  • 9. India Media Monitor Published by: Heernet ventures limited London UK, Gurgaon India Tel: +44 (0) 208 180 7223 Fax: +44 (0) 870 762 3014 Web: heernet.com, G2Mi.com © Heernet ventures limited 2009. All Rights Reserved. All corporate logos, images and brands are copyright of the respective companies. TERMS & CONDITIONS OF USE Every attempt has been made to ensure that the information in this report is correct at the time of publication. Heernet ventures limited and its directors do not accept any liability for any errors or omissions within this report. Unless specified, the views expressed in this report are purely those of the author. The content of this report does not in anyway constitute investment advice or investment recommendations. Heernet ventures limited does not provide investment advice or investment advisory services and is not regulated by the Financial Services Authority (FSA) in the UK or any other financial services regulator in any other country. The content of this report can not be reproduced without the written permission of the author. This copy must not be circulated in either electronic or print format outside of the purchasing organisation. © Heernet Ventures Limited. All Rights Reserved