1. Media – Event Update
M&E Industry set for a bounce-back!
bounce-
Anand Shah Chitrangda Kapur
Phone: 022-40403800 Extn: 334 Phone: 022-40403800 Extn: 323
Email: anand.shah@angeltrade.com Email: chitrangdar.kpaur@angeltrade.com
April 6, 2010
2. M&E Industry grows a muted 1.5% in CY2009
M&E Industry faced a tough CY2009 owing to the economic slowdown and shrinking corporate budgets
The year was marked by innovations and focus on cost efficiencies across M&E segments
During CY2009, the Indian M&E Industry stood at Rs587bn, registering a muted1.5% yoy growth
As GDP growth recovers, the M&E Industry is set to stage a recovery and register 11.1% yoy growth in CY2010
Indian M&E Industry expected to post a CAGR of 13.3% over CY2009-14E to reach size of Rs1,094bn
1,200 16.9 18.0
14.8
14 8 16.0
16 0
1,000 13.7 13.7
12.7 15.1 14.0
12.0
800 11.1 12.0
10.0
600
1,094 8.0
950
400 836 6.0
742
652
578 587 4.0
516
200 442
2.0
1.5
- -
CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014
Size (Rsbn), LHS YoY Growth (%), RHS
Source: FICCI – KPMG Media Report 2010, Angel Securities
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1
3. Television stood tall, Films the worst hit
TV and Print are the largest sectors of the industry contributing to greater than 70% of the revenues
Amidst weak macro conditions, the TV industry showed a good growth rate of 6.9% yoy to Rs257bn in CY2009
Print showed a flat trend registering a muted 1.7% yoy growth to Rs175bn for the year
Sectors like Films, Radio and Out-of-Home (OOH) registered negative growth during the year
Internet and Gaming and Animation registered double-digit growth on a smaller base
Television along with New Media segments to outpace overall M&E growth during CY2009-14
(Rs bn) CY06 CY07 CY08 CY09 #CY06-09 CY10 CY11 CY12 CY13 CY14 #CY09-14
Television
T l ii 183 211 241 257 12.1
12 1 289 337 382 448 521 15.2
15 2
Filmed Entertainment 78 93 104 89 4.5 96 105 115 125 137 9.0
Music 8 7 7 8 0.8 9 10 12 14 17 16.3
Print Media 139 160 172 175 8.1 190 206 225 240 269 9.0
Radio 6 7 8 8 10.1 9 10 12 14 18 17.6
OOH advertising
d ii 12 14 16 14 6.2
62 15 17 19 21 24 11.4
11 4
Internet advertising 2 4 6 8 58.7 11 15 18 23 29 29.4
Animation 12 15 17 20 18.6 23 28 33 39 47 18.6
Gaming 3 4 7 8 38.7 10 14 20 26 32 32.0
Total M&E Ind Size 442 516 578 587 10.0 652 742 836 950 1,094 13.3
Source: FICCI – KPMG Media Report 2010, Angel Securities, #Note: Denotes CAGR for the period,
OOH = Out of Home
2
4. Advertising stays flat at Rs220bn
Advertising constituted 38% of the M&E Industry revenues in CY2009 to Rs220bn
Amidst the uncertain economic environment and lacklustre industry sentiment that prevailed in 2009, the Indian
Advertising industry managed to sustain its media spend levels of CY2008
With the market picking up in the second half of 2009, the Indian Advertising industry is expected to register
12.1% yoy growth in CY2010 to Rs247bn
Advertising Industry to recover registering a CAGR of 14.1% over CY2009-14 to reach a size of Rs427bn
450 25.0
400 19.9
18.5 20.0
350
14.9 15.2
300 13.9 15.0
12.6 12.1
14.7
250
10.0
10 0
427
200
371
150 323 5.0
281
247
100 221
196 220
166 -
50 (0.4)
(0 4)
- (5.0)
CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014
Size (Rsbn), LHS YoY Growth (%), RHS
Source: FICCI – KPMG Media Report 2010, Angel Securities
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3
5. Low Media spend indicates potential
Media spend in India, as a per cent of GDP, is 0.41%. This ratio is almost half of the world’s average of 0.80%
and much lower than the developed countries like US and Japan indicating the potential for growth in spends.
The current per capita media spend for India is very low at US $4 compared to the other countries. Even though
it is challenging to reach the levels of countries like US, Japan and UK due to a very large population base and
lower per capita spending power, there is scope to follow China and enhance this ratio.
With an up-tick in India’s GDP growth, the outlook for the year looks to be more promising with advertising
growth returning to double-digit levels.
Media spend as % of GDP indicates immense potential Per capita Media spend at US $4 extremely low even v/s China
1.20 491
1.08 500
450
1.00
0.90 400
0.78 0.80 343
0.80 0.75 350
300
251
0.60 250
0.41 200
0.40
150
100
0.20
50 27
4
- -
India UK US China Japan World India UK US China Japan
Source: Group M, Summer 2009, Angel Securities, Note: Data is for 2009 Source: Group M, Summer 2009, Angel Securities, Note: Data is for 2009
4
6. Print big in size, but Television to outpace
Television Advertising registered a modest growth of 6.7% in CY2009
Print Advertising registered a decline of 4.6% in CY2009, but garnered the largest share at 46.8%
Going ahead, Television is expected to garner greater percentage of the total Advertising revenues and constitute
the largest share of the overall media spend aided by higher growth rates
Television Advertising to outpace overall Advertising growth at 15.6% CAGR during CY2009-14
(Rs bn) CY06 CY07 CY08 CY09 #CY06-09 CY10 CY11 CY12 CY13 CY14 #CY09-14
Television 61 71 83 88 13.0 99 113 133 155 182 15.6
Print Media 85 100 108 103 6.6
66 114 127 142 158 176 11.4
11 4
Radio 6 7 8 8 9.1 9 10 12 14 16 16.0
OOH advertising 12 14 16 14 5.4 15 17 19 21 24 12.0
Internet advertising 2 4 6 8 57.4 11 15 18 23 29 29.6
Total Advt Market 166 196 221 220 10.0 247 281 323 371 427 14.1
(yoy growth %) CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14
Television 17.5 16.6 16.0 6.7 12.0 14.9 17.0 17.0 16.9
Print Media 22.5 17.6 8.0 (4.6) 10.3 11.5 11.7 11.5 11.8
Radio 22.4 23.3 13.5 (7.1) 11.5 14.9 17.0 17.9 18.8
OOH advertising g 17.0 19.7 15.0 (14.9)
( ) 9.5 11.3 12.0 12.8 14.2
Internet advertising - 95.0 59.0 25.8 41.0 32.7 24.7 25.3 25.0
Total Advt Market 19.9 18.5 12.6 (0.4) 12.1 13.9 14.7 14.9 15.2
Source: FICCI – KPMG Media Report 2010, Angel Securities, #Note: Denotes CAGR for the period
5
7. Key Drivers for growth in M&E
Innovation is becoming essential for players to Availability and penetration of newer distribution
adapt to the changing market scenario, platforms like Digital Cable, DTH and IPTV,
technology and consumer behaviour. An digitisation of newspapers, magazines, films
example of successful product innovation is and sale of on-line and mobile music is
Digitisation
the evolution of IPL as a brand, which has expected drive growth in the M&E Industry
effectively combined entertainment and sports
As urban markets
saturate, Regional content
is emerging as one of the
Innovation Regionalization most significant and
g
attractive proposition for
Media players vying for
growth at reasonable
costs
The M&E Industry is increasingly Advertisers are looking at
getting fragmented due to the entry multiple delivery platforms for
of newer players, customers and content to break through the
regions in turn intensifying Consolidation
C lid ti Convergence
C clutter creating new and exciting
l i d ii
competition and paving the way to methods of monetising content
consolidation of operations and attracting new media
consumers
Source: FICCI – KPMG Media Report 2010, Angel Securities
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6
8. TELEVISION
“Efficiency came about on the production side due to recession.
Budget were cut by 1/3rd but the quality of programming was not
impacted”
Puneet Kinra, CEO, Balaji Telefilms
“The next decade will be a digital decade, driven largely by
consumer demand for digital quality and triple-play and value
added services. As digital penetration grows, niche programming
will evolve as it can cater to specific customers who are willing to
pay for the same”
Ashok Mansukhani, Director - Hinduja Ventures
“Digitalization, equitable pricing and level playing fields could
change the scenario for growth of DTH in India”
India
Tony Dsilva, COO, Sun Direct
“Currently from almost 60 percent revenues for the industry
coming from analog, it will move to a level where digital revenues
will overtake and their share i the pie will b
ill k d h i h in h i ill become hi h i the
higher in h
next two years. However, the analog platform will never become
completely outdated and will co exist with digital cable and DTH”
Siddharth Jain, VP – Distribution, Turner International
7
9. Multiple levers to drive strong growth
Television is the largest segment in the overall M&E Industry with a size of Rs257bn, and is expected to post a
CAGR of 15.2% over CY2009-14E to achieve a size of Rs522bn
Advertising is expected to register 15.6% CAGR during the period, marginally higher than the 15% CAGR that
Subscription is likely to register during the period
Advertising and Subscription to aid Television outpace overall M&E growth
600 20.0
522 18.0
500
16.0
448
182 14.0
400 382
155 12.0
336
(Rs bn)
290 133
(%)
300 10.0
257
s
113
241
211 99 8.0
200 183 88
83
71 340 6.0
61 293
249 4.0
100 223
169 191
140 158
122 2.0
0 -
CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014
Advertising Subscription YoY Growth (RHS)
Source: FICCI – KPMG Media Report 2010, Angel Securities
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8
10. Key factors indicate good times ahead
Average Time spent watching Television on the rise No of TV Households rose 5% in 2009 driving TV penetration to 58%
160 151 152 250
140 135
200 95 93
119
120
on)
100 150
(No in Millio
(Minutes)
80 129
123
100
60
40 50
20
0
0
2008 2009
2006 2007 2008 2009 Non TV HHs Total TV HHs
Source: Companies, Angel Securities Source: Companies, Angel Securities
No of C&S Households rose 10 % in 2009 driving penetration to 74% DTH Subscribers grew a whopping 60% in 2009 to 16mn
100
140
90
120 34 80 16
37 10
100 70 2 4
(No in Million)
70 69
(No in Million)
95 60
80 86 50
60 40
30
40
20
20
10
0 0
2008 2009 2008 2009
Non C&S C&S
DTH Digital Analog
Source: Companies, Angel Securities Source: Companies, Angel Securities
9
11. Share of Broadcasters to rise…
The share of Broadcasters in the total subscription pie is expected to rise from current levels of 18% in 2009 to
27% in 2014 driven by better transparency on account of higher digitisation
Subscription for Broadcasters is expected to record CAGR of 24% vis-à-vis 15.6% in Advertising
The share of Subscription revenues for Broadcasters is expected to increase from 26% in 2009 to 33% by 2014
Subscription Revenues to drive strong growth for Broadcasters
300 35
33
32
33
250 31
3
30
31
28
29
200
26 182 27
(R bn)
155
(%)
150 25
Rs
133 23
100 113
99 21
88
19
50 90
74 17
49 59
31 39
0 15
CY2009 CY2010 CY2011 CY2012 CY2013 CY2014
Advertising Subscription Subs as % of Total (RHS)
Source: FICCI – KPMG Media Report 2010, Angel Securities
10
12. …driven by the Digitisation wave
The penetration for digital cable and DTH is expected to increase at a much faster rate than anticipated
The total number of DTH and digital subscribers is expected to reach up to 43mn and 40mn respectively, by
2014
The Government in India could also mandate a sun-set clause for channels to go completely digital, like some
other developed nations in the world
ARPUs would however remain flat in 2010 and grow marginally from thereon due to excessive competition, not
only from other players but from other platforms as well
Digital Subscribers t rise at a f t pace
Di it l S b ib to i t faster ARPUs to
ARPU t remain under pressure
i d
(Mn) 2009 2010 2011 2012 2013 2014 (Rs) 2009 2010 2011 2012 2013 2014
Analog 69 68 63 59 56 55 Analog 160 160 165 165 170 170
Digital 4 10 19 27 35 40 Digital 160 160 170 180 201 226
DTH 16 24 30 35 39 43 DTH 150 150 159 169 189 211
IPTV 0 0 1 2 2 3 IPTV 160 160 170 180 201 226
Source: FICCI – KPMG Media Report 2010, Angel Securities Source: FICCI – KPMG Media Report 2010, Angel Securities
11
13. PRINT
“As demand picks up with improving economic conditions coupled with supply
rationalization, we expect newsprint prices to rise to an average of USD 625-
650 ton over 2010 and to be around USD 675/ton over 2011”
Mohit Jain, Times of India - Chairman,
Newsprint Association of India
“Shift of the markets from metro to tier-II and tier-III towns is no
longer a statement to be debated. Marketers are now focusing in
this area. Hence where as the yield ratio; that is the cost of
reaching audience through use of print, used to 12 times for
English than for the regional languages in 2003, it has come
down to 9 times in 2008 and we ideally feel the same would
gradually come down to 3-4 times”
Girish Agarwal, Director, Dainik Bhaskar
“Whereas whole of newspaper industry was gasping completely
strangulated by the huge amount of pressure on advertisement
revenue as a result of one of the worst economic downturn in
2009,
2009 Regional Language press not only survived but also
continued to progress and is again back to more than double digit
growth trajectory. Year 2009 was a testimony of our faith and
Regional Media coming of age”
R.K. Agarwal, CFO, Jagran Prakashan
12
14. Set to gain post a year of pain
Print registered a muted 1.3% yoy growth in CY2009 to Rs175bn largely supported by a 12% yoy growth in
Circulation revenues (aided by cover price hikes) as Advertising declined 5% yoy
With economic recovery on-track, second half of the year witnessed an increase in advertisement off-take
Going ahead, Print is expected to stage a recovery and register a modest 9% CAGR over CY2009-14 aided by
14.3% CAGR in Advertising and 6.3% CAGR in Circulation during the period.
Recovery in Advertising to drive Print Media Revenues
300 20.0
268
18.0
246
250
225 16.0
207 92
14.0
200 190 88
173 175 84 12.0
160
80
(Rs cr)
139 76
%)
150 10.0
10 0
c
(%
64 72
60
8.0
54
100
176 6.0
158
141
127 4.0
50 108 103 114
100
85
2.0
2 0
0 -
CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014
Circulation Advertising YoY Growth (RHS)
Source: FICCI – KPMG Media Report 2010, Angel Securities
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13
15. Education tops the list of Advertisers
In 2009, top-10 sectors contributed to 64% of the revenues of the Print Sector. Education, Services,
Banking/ Finance, Auto and Retail were the major contributors with a revenue share of 49%
Sectors such as Banking/ Finance, Retail, Real Estate, and Travel and tourism, etc. were adversely impacted by
the economic slowdown resulting into muted 3% volume growth in Print during 2009
While the Services and the Banking/ Finance sectors saw a decline of 1% and 4% respectively, the Education and
FMCG Sectors provided some support clocking growth of 5% and 31% respectively, in 2009
English newspapers bore the brunt of reduced advertisement off-take during 2009, while high exposure to more
stable sectors such as FMCG, Education, Telecom, Social/ Political and local advertisements helped the Regional
newspapers record lower volatility in ad ertisements
olatilit advertisements
Education Sector maintained its No1 advertiser position in 2009 Educational Institutions is the largest category of advertisers in Print
T op 1 0 S e c tor s in P r i nt % S har e T op 1 0 Cate gor ie s in P r int % S har e
Education 15 Educational Institutions 11
Services 11 Social Advertisements
l d 9
Banking/Finance/Investment 9 Independent Retailers 4
Auto 7 Cars/ Jeeps 4
Retail 5 Properties/ Real Estates 3
Durables 4 Hospitals/ Clinics 2
Personal Accessories 4 Corporate/ Brand Image 2
Personal Healthcare 3 Coaching Centre/ Compt Exams 2
Corporate/ Brand Image 2 Events 2
Textiles/ Clothing 2 Jewerellery 2
Source: Adex India, Angel Securities Source: Adex India, Angel Securities
14
16. Regional markets dominate the numbers…
Of the more than 62,000 newspapers printed, around 92% are published in Hindi and other vernacular
languages
As a result, regional language newspapers also dominate the readership statistics with only one English
newspaper (The Times of India) among the top-20 newspapers and none figuring among the top-10 newspapers
A comparison of the readership of the top-5 publications in various languages indicates that Hindi newspapers
(159mn readers) have significantly high readership compared to the English newspapers (31mn readers)
Hindi tops the list of Readership amongst all languages by a significant margin
1800
1588
rship, in Lacs)
1600
1400
1200
1000
(Avg Issue Reader
800
514 565
600
335 382
400 285 305
206
200
0
(
Tamil
Kannada
Telugu
Hindi
English
Bengali
Marathi
Malayalam
Source: FICCI – KPMG Media Report 2010, Angel Securities
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15
17. …but English dominates Revenue share
Industry estimates indicate that advertisement rates in English dailies operate at between 5–10 times the rates for
the Hindi and Vernaculars
Hence, despite having higher number of registered newspapers, higher readership: circulation multiple and lower
CPT (cost per thousand readers), Hindi dailies command a lower share of the Advertising Revenue
On an average, it is estimated that English newspapers contribute approximately 45% of the advertisement
market, with Regional Print constituting 50% share
English Dailies garner the highest share of Ad Spends English Dailies have significantly higher CPTs
Vernacular English Dailies
Regional
Dailies 45%
25% 34
English
87
Hindi Dailies Business 0 20 40 60 80 100
25% Dailies
(CPT, Rs)
5%
Source: Adex India, Industry Estimates, Angel Securities Source: FICCI – KPMG Media Report 2010, Angel Securities
16
18. The gap is expected to narrow
Print Media penetration in the Urban areas is significantly higher than the Rural areas indicating higher growth
potential for Regional Print Media. Moreover, the number of readers in both Urban and Rural India from the
lower socio-economic classes have the maximum growth potential due to low penetration levels, which again
re-iterates our view that Hindi Print has higher growth potential (refer Tables below).
Going forward, Regional print is expected to drive the overall advertising growth in the Print Sector on the back of
growing focus of established national advertisers from across various sectors on the growth potential in tier 2/3
cities and lower socio-economic classes, which are the primary consumers of Regional print.
Penetration of Print in Urban areas is high at 57% Low Penetration of Print in Rural areas at 30%
All Literates Print TR All Literates Print TR
000s % 000s % 000s % 000s % 000s % 000s %
All India 861,922 100 590,132 68 332,342 39 All India 861,922 100 590,132 68 332,342 39
Urban 272,032 100 225,946 83 154,253 57
Rural 589,890 100 364,187 62 178,088 30
SEC
SEC
A1 9,209 100 9,115 99 8,710 95
A2 18,491 100 18,138 98 16,446 89 R1 24,672 100 22,401 91 16,922 69
B1 21,937 100 21,204 97 18,299 83 R2 76,569 100 65,427 85 43,217 56
B2 22,797 100 21,713 95 17,242 76 R3 238,978 100 186,680 78 88,300 37
C 55,358 100 51,391 93 37,310 67 R4 249,671 100 89,679 36 29,649 12
D 63,493 100 54,898 86 33,001 52
Source: IRS 2009 R2, Angel Securities
E1 31,061 100 26,309 85 14,112 45
E2 49,686 100 23,178 47 9,133 18
Source: IRS 2009 R2, Angel Securities
, g
17
19. FILM
“The Film industry did not bear the brunt of a recession rather it bore the brunt
of poor content and unrealistic budgets”
Ramesh Taurani, Managing Director, Tips Industries
“2009 was a year of correction… the returns did not justify the
costs incurred to acquire content. The market had changed
dramatically between 2007 and 2009”
2009
Sandeep Bhargava, CEO, Indian Film Company
“Going forward, there will need to be a renewed focus on
content...the success of '3 Idiots' has proved that the revenue
potential of well received films has gone up considerably.”
Siddharth Roy Kapur CEO UTV Motion Pictures
Kapur,, CEO,
18
20. CY2009 – A dismal year for Films
Film Industry witnessed 14% de-growth in CY2009, largely on account of lower domestic theatrical collections
The industry was plagued by weak movie pipeline and the occupancy in multiplexes took a hit due to swine flu
scare and the strike between the producers and the exhibitors during the first quarter of the financial year.
However, the last quarter of 2009 brought some cheer to the industry. The success of films like Ajab Prem Ki
Ghazab Kahani, Aadhavan, Vettaikaran and 3 Idiots boosted the industry’s fortunes. Hollywood films like 2012
and Avatar also did well at the box office.
Post 14% de-growth in CY2009, Film Industry is expected to rebound to 9% CAGR during CY2009-14E
(
(Rs bn)) CY06 CY07 CY08 CY09 #CY06-09 CY10 CY11 CY12 CY13 CY14 #CY09-14
Domestic Theatrical 62 71 80 69 3.3 73 79 86 93 101 8.0
Overseas Theatrical 6 9 10 7 6.2 7 8 9 9 10 8.0
Home Video 3 3 4 4 13.1 5 5 6 7 7 11.8
C&S Rights 5 6 7 6 7.9 7 8 9 10 11 12.8
Ancillary Revenue
y 2 3 4 4 12.9 4 5 5 6 7 15.0
Total Industry Size 78 93 104 89 4.6 96 105 115 125 137 8.9
(yoy growth %) CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14
Domestic Theatrical 19.3 15.1 12.2 (14.6) 7.0 8.2 8.2 8.4 8.4
Overseas Theatrical 7.7 52.5 12.2 (
(30.4)
) 7.4 8.2 8.9 8.1 8.6
Home Video - 13.8 15.2 13.2 9.3 10.6 13.5 11.9 12.1
C&S Rights 50.2 24.9 15.0 (11.8) 11.1 12.9 13.9 12.2 12.9
Ancillary Revenue 21.9 20.0 20.1 - 16.1 14.6 14.9 14.8 14.5
Total Industry Size 24.7 18.6 12.7 (14.4) 7.8 8.9 9.2 9.2 9.3
Source: FICCI – KPMG Media Report 2010, Angel Securities, #Note: Denotes CAGR for the period
p , g , p
19
21. Emerging Revenue streams to drive growth
Over the next five years, the Filmed Entertainment Sector is expected to post a CAGR of 8.9% to Rs136.8bn by
CY2014 driven by higher number of multiplexes, better occupancies (dependent on movie pipeline), roll-out of
digital infrastructure across screens (reducing piracy) and higher revenues from C&S Rights
The domestic theatrical revenues are expected to decline marginally going ahead, but in the long run, it is
expected to remain the dominant revenue source for the industry contributing as much as 74% of the total
revenues in CY2014
C&S Revenues to grow faster; Theatrical Revenues to remain the dominant revenue stream
Cable &
Satellite 2009 Ancillary
Cable &
2014E
Rights Satellite Ancillary
Revenue Revenue
Rights
Home Video 7% Streams
8% Streams
5% 4%
Home Video 5%
Overseas 6%
Theatrical
8% Overseas
Theatrical
7%
Domestic Domestic
Theatrical
h l Theatrical
Th t i l
76% 74%
Source: FICCI – KPMG Media Report 2010, Angel Securities
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20
22. RADIO
“Growth in sales of FM enabled handsets has been a big contributor to growth
in FM listenership”
Prashant Pandey, CEO, ENIL
“The industry in a more deregulated regime has existed for only
five years, plus it is still governed by policies like an inability to
own more than one frequency in a city – hence players have not
had adequate time or opportunities to differentiate. It will take
policy changes and time to invest in and develop differentiated
brands”
Apurva Purohit, CEO, Radio City
“Post Phase 2, growth in large cities happened largely in volume.
Value growth did not happen”
S. Keerthivasan, Business Head, Fever FM
21
23. High Potential, Challenges Remain
Like other media sectors, the Radio Industry was also affected by the economic slowdown in CY2009
The private FM Radio Industry declined by around 7% during the year (revenues for the individual players either
stayed largely flat or de-grew by up to 10%), accounting for a mere 1.4% of the overall M&E Industry and 3.5%
of overall Advertising Revenues.
Radio Sector poised for a 16% CAGR growth during CY2009-14E to Rs16.4bn
18.0
16.0
16 0
16% CAGR
14.0
12.0
10.0
(Rs bn)
8.0 16.4
13.8
6.0 11.7
10.0
4.0 8.4 7.8 8.8
2.0
0.0
CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014
Source: FICCI – KPMG Media Report 2010, Angel Securities
22
24. Phase-III licensing – the next trigger
Over the next five years, the Radio Sector is expected to register a robust CAGR of about 16% to Rs16.4bn by
CY2014E
Growth in the Sector is likely to driven by continued increase in the number of Radio Stations after Phase-III
licensing, further liberalisation of Regulations and better ability of Radio stations to sell Ad space. Introduction of
new performance metric tool like RAM (Radio Audience Measurement) is also expected to aid growth in Radio
Advertising
TRAI has outlined some key recommendations for Phase-III licensing of the Sector, which if cleared would help
improve Operating efficiency of the Radio companies and attract higher foreign investments. Some of the
important recommendations of TRAI incl de - Increasing FDI limits to 26% from the c rrent 20% permitting
include current 20%,
extension of license period and allowing ownership of multiple frequencies
High anticipation around Phase III bidding on account of significant number of new licenses
Regulatory S
R l t Snapshot
h t Top 8 Metros
T M t Other T
Oth Top 30 cities
iti Smaller cities
S ll iti
Existing Licenses 48 65 162
Unallocated in Phase2 8 7 78
New licenses in Phase 3 3 22 >650
Source: FICCI – KPMG M di R
S Media Report 2010 A
t 2010, Angel S
l Securities
iti
23
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inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or
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Disclosure of Interest Statement Zee News
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock Yes
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below Rs1lakh for Angel, its Group companies and Directors; Apart from Zee News, no holdings
in the other stocks mentioned in the Angel Media universe.
