India Media and Entertainment industry 2013 sample
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India Media and Entertainment industry 2013 sample India Media and Entertainment industry 2013 sample Presentation Transcript

  • The Indian Media and Entertainment Industry 2013 EAST WEST RELATIONS
  • Table of Contents 1. Executive Summary 08 a) The Macro-Economic Outlook 08 People and Demographics - Growing Middle Classes b) The Media Economy 09 2. Macro-Economic Overview 12 a) Overview 12 b) The Indian Consumer Landscape 17 Share of Average Household Consumption Four Key Segments Composition of Consumption Expenditure Across Segments Future Outlook 3. The Indian Television Industry 28 a) Executive Summary 28 Distribution Television Channels (Broadcasters) Content & Rights b) Macro Market View 30 Drivers/Considerations c) Distribution: DTH and Cable 34 Overview DTH (Distribution - Satellite/Direct to Home) Cable En Route to Digitization: Trends, Concerns and Challenges Key Players Indian Television Industry - Stakeholder Revenue Chain d) Television Channels 40 Broadcasting e) Content Production 44 Overview Key Players
  • Table of Contents f) Regulatory Implications 50 Broadcasters Multi-Service Operators (Cable Distribution Companies) Local Cable Operators (Lcos) Customers 4. The Indian Print Industry 52 a) Executive Summary 52 b) Macro Trends 54 c) English Versus Vernacular New Daily Publications 57 d) Revenue Share by Category 58 Advertisement Revenues Circulation Revenues e) Growth Outlook 61 Rising literacy to add more readers Regional Power Shift Localization of content Players go Pan India, not content with regional leadership High cover prices Expanding reach with the help of regional languages Digital rehash f) Key Challenges and Issues 65 High cost and volatility of newsprint prices Limited talent availability Fragmented industry FDI investment Cap Impact of new wages bill g) Evolving Business Models and Digital Developments 67 Brand Activation Partnership/Co-branding Advertiser-Print Media Barter (Stake for Space) Cross-Media Platform Online Subscription
  • Table of Contents 5. The Indian Digital Media Industry 68 a) Executive Summary 68 b) The Internet Infrastructure in India 68 Key Drivers Mobile Telephony c) Consumer profile and behavior 78 India Internet Consumption & Behavior d) Digital market sub sectors summary 86 Commerce and Transaction Mobile advertising Mobile Applications Factors driving growth in mobile apps Overall digital prospects and development Key Challenges e) Key verticals and major players 96 Consumer Digital – Segmentation Utilities Growth of India’s Top Social networking Sites Usage of India’s Top Social networking Sites Content &Entertainment f) Appendix – Detail on Digital Advertising 104 6. The Indian Radio Industry 108 a) Overview 108 Market Developments b) Major Private FM Operators 111 c) Key Challenges and Future Outlook 111 Future Outlook 7. The Indian B2B Media Industry 114 a) Overview 114 Architecture, Construction, Engineering (Ace) and Construction Equipment B2B Media Presence Civil Aviation
  • Education Services Environment, Water Healthcare & Medical Equipment Infrastructure (Roads, Ports, Railways) Travel & Tourism Automotive Industry b) B2B Magazines Market 125 Ad Revenue Vs Circulation Revenue Future Outlook and Growth Factors contributing to the growth of the B2B publishing market Key Challenges In The B2B Publishing Market Key Trends c) The B2B Events Market 132 Overview Events Classification Company Profile Event Management Companies Appendix Key Venues Profile Tax Implications d) B2B Digital Media Market 144 Ad Revenue Vs Subscription Revenue Cost Break Up E-Commerce Trade Directories & Info Services 8. The Art of the deal, by Investec 150 9. Mergers & Acquisitions (last 2 years) 152 Print Industry B2B Industry Television & Film Industry Digital Industry Events Industry Radio Industry Table of Contents
  • 10. PE&VC – M&E (last 2 years) 155 11. Key Player Summaries 156 Media Conglomerate 157 Television Industry Media networks Studio Entertainment TV Content Distributors Print Industry Digital Industry The Global Digital Industry behemoths in India Other Digital Media companies Major Indian Players Indian Digital Media Companies – Part Of Large Media Conglomerate 182 Revenue Model B2B Companies Infomedia UBM India Express Group 12. FDI Policy for Media 195 Broadcasting Print Industry 13. Market Pulse (Quarterly) 197 Print Industry Digital Industry Smartphone & Tablet Product Launches B2B Industry Television Industry Policies & Regulations Others Table of Contents
  • 8© East West Relations a) The macro-economic outlook India is the world’s second most populous country with a little over 1.2 billion people and is already ranked 3rd in terms of its PPP ranking, representing around 2.98% of world GDP in 2012. By 2030, India will almost certainly be the world’s third largest economy in absolute terms, also. (By 2050, some would predict that it will be the largest). But this is a market which has remained largely closed to foreign media companies until relatively recently when, in 1991, the cumulative impact of past policies and changing world economic trends meant that India faced a severe foreign exchange crisis. The government moved then to remove some of the regulations governing investment, including many although not all restrictions on foreign investment. This trend has continued, with planned changes to restrictions within the retail sector among the latest developments. The pace of foreign investment is now accelerating. Despite the recent slowdown in the Indian economy, we are convinced that the fundamentals remain strong and that the country will return to significant growth. India is not immune to the economic difficulties in the west, although given its growing domestic consumption, it is perhaps more resilient than other nations. The government has to some extent engineered the slowdown to combat inflation and that is showing success and can soon be relaxed. The government has also been criticised for a lack of decisiveness and it is true that there appears to be a power-vacuum at present, which will probably not be solved until after the next general election (due in 2014, but possibly even sooner). Thankfully, India has always been a nation of entrepreneurs and they will continue to drive India’s growth, in spite of government bureaucracy and indecision. (If China’s growth is ‘planned and top-down’, India’s will inevitably remain more bottom-up.) In terms of the fundamentals….bear in mind that whilst the populations of the west are increasingly ageing and mostly suffer from excessive debt and unaffordable long-term commitments, India has a population of 550 million people under the age of 25, education levels are rising rapidly, a high proportion of young Indian are highly tech- savvy and personal and government debt are low. People and Demographics – Growing Middle Class The Government of India defines the middle class as the mid socioeconomic class (SEC C). The National Council for Applied Economic Research (NCAER) defines the Indian middle class as those whose annual household income falls in the income group of $4,000-$21,000. It comprises people who are employed at clerical or supervisory levels, skilled workers, petty traders or shop owners. The purchasing power of the middle class is increasing rapidly, with considerable potential to grow further still. Armed with increased disposable income, their spending on various products has also increased, most rapidly, as you would expect, on discretionary items. Mobile phone handsets provide a good example. The highest percentage of mobile ownership is among the Indian middle class; according to TGI India, 42% of all mobile phone owners in the country are in this socio-demographic group, representing more than 330 million consumers. Mobile will transform the fortunes of many industries in India, including, of course, the media and entertainment industry. Real household disposable income has more than doubled since 1985. In the next decade, the middle class will be the dominant section of the Indian population. 1. Executive Summary The Indian Media and Entertainment Industry | Executive Summary
  • 10© East West Relations Time Spend by Indian on Media in a week Source: INgene report We are confident that the media economy will remain in high growth, beyond the overall economy. There are two main drivers: Growing literacy and slightly improved affluence in the rural areas and smaller cities, above subsistence levels, mean that the market for newspapers and regional language media continues to be robust and will show growth for many years. Simultaneously, among India’s middle class, digitisation in TV, an increase in the number of FM licenses in radio, and the growth of smart phones and broadband connectivity, all mean that the media revolution experienced in the west during the past few decades is now being experienced in India, too, but within a compressed timescale. The fundamental social change affecting all consumer media is the focus on self-improvement, which will last for at least a generation from now. Simultaneously, growth in income levels is driving expenditure on homes, travel, cars and other needs beyond the most basic and increase in leisure time is driving interest in hobbies and other interests beyond the work-related. The change affecting B2B media is the transformation of India’s business structures, from fragmented to organized. We believe that there are two big questions concerning India’s media development, of importance to the higher SEC groups and of principle concern to international investors: boxes and the growth of DTH? subscriptions? We believe that the answer to both is that over the period of the next decade, these drivers will utterly transform the media sector in India. Neither impact will be instantaneous or follow a straight line. But the correct attitude to the market at this point is to become sufficiently engaged to understand the market and the changes taking place. Potential Game Changers Advertising Spends: Television and print dominate the advertising segment in India, with over 80% share of revenue. Digital advertising spend will now rapidly accelerate in absolute terms and proportionately. Advertising Spends for Television: Television advertising will also increase at pace.The television audience in the country has been on a high growth path, enabling advertisers to reach out to a larger segment of the Indian population. As a result, advertising budget allocation has slowly shifted its focus from other advertising media to this platform. Limited data about the specialist audiences different channels provide has held the medium back from its full potential and will be corrected. The Indian Media and Entertainment Industry | Executive Summary
  • 14© East West Relations Despite the economic lull, deterioration of growth rates and its other share of problems, India continues to be regarded as the world’s most optimistic market for the ninth consecutive quarter. Optimism over job prospects and state of personal finances are up from last quarter as Indian consumers continue to be the most confident across the globe. The Indian Media and Entertainment Industry | Macro-Economic Overview Consumer Confidence Index Score Source: Nielsen Global Survey of Consumer Confidence and Spending Intentions, Q1 2012 Demographic Indicators Source: IMF, World Bank