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Abstract :
The report highlights the analysis of the drivers and explains the factors for growth of the industry. Emerging middle class and rising disposable income, Increase in television and radio penetration, complete digitization of TV services and Increase in sale of LCD and LED TVs, are the key drivers of this market. Rise in disposable income of the working class coupled by the new digital wave will overlook the price factor of most forms of digital broadcasting media vis-à-vis analogue cable. Rapid evolution of new technologies such as High Definition (HD), STBs (Set Top Boxes) with inbuilt recorders and delivery platforms, create further opportunities for innovation and growth. Government of India has passed a bill aiming at complete digitization of the cable industry by Dec 31, 2014. Upgrade to LCD (Liquid Crystal Display) TVs has shifted viewership trend to DTH/digital broadcast
There are various challenges too that the Digital Broadcasting Market faces, High costs involved in digital conversion, Shortage of set top boxes are the major challenges faced by the auto ancillary industry. Costs in digital conversion primarily centres on costs of providing duplicate transmission equipment and distribution infrastructure. Digitization process entails internal costs to broadcasters for upgrading their program creation and presentation; High costs involved in digital broadcasting mechanism poses as a challenge that the sector needs to overcome. As the nation gears up for a switch from analogue to digital transmission, set top boxes are required to continue watching cable television. Operators are facing a crunch in the supply of set-top boxes for the entire population base in India. Further India is going digital at the same time as other nations including Brazil, Russia, China and South Korea, which is making the situation bleak in terms of meeting demands of set top boxes.
The Telecom Regulatory Authority of India (TRAI) has proposed a 50% reduction in the airtime of television advertisements which will eventually result in halving the amount of ad inventory and render a better viewership experience. The government has liberalized the broadcast sector ahead of India's shift to digital carriage of television channels, raising foreign direct investment (FDI) ceiling to 74 % in direct-to home (DTH) and multi-system operators (MSOs0029.
Table of Contents :
Slide 1: Executive Summary
Introduction
Slide 2: Digital Broadcasting Sector in India – Introduction
Macro Economic Indicators
Slide 3: GDP at Factor Cost: Quarterly (2011-12 - 2014-15), Inflation Rate: Monthly (Jul-Dec 2013)
Slide 4: Gross Fiscal Deficit: Monthly (Feb 2013 - Jul 2013), Exchange Rate: Half Yearly (Apr 2014- Sep 2014)
Slide 5: Lending Rate: Annual (2011-12 - 2014-15), Trade Balance: Annual (2010-11 – 2013-14), FDI Annual (2009-10 - 2012-13)
Market Overview
Slide 6: Digital Bro
2. 2
Executive Summary
Market
Global digital broadcasting sector has risen considerably and is set to grow at a rate of p1% over
20--
Caters to - primary segments for content delivery namely q1 and q2
Indian digital broadcasting sector is slated to witness a p2% growth in its subscriber base over 20--
Drivers &
Challenges
Competition
Drivers
–Emerging middle class and rising
disposable income
–Increase in television and radio
penetration
–Complete digitization of TV services
–Increase in sale of LCD and LED TVs
Challenges
–High costs involved in digital
conversion
–Shortage in set top boxes
Major Players
Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
Penetration of mobile services in the market
Headend-in-the-sky (HITS)
A-la-carte channels in the offing
Conversion of AIR to digital framework
Trends
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
4. 4
SAMPLERecent Government mandate towards digitization earmarks
the sector for phenomenal growth
Digital Broadcasting Market – Overview
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
•Broadcasting industry in India is presently at a critical juncture with slurry of developments across the
sector including digital techniques and mobile
•India is at the verge of a revolution in a1 and a2 with broadcasters scouting for new content delivery
alternatives
•Conversion from analogue to digital broadcasting is supposed to be a potential growth driver for this sector
•Newer modes of content delivery including a3 and a4 have also emerged as latest additions to broadcasting
media
•The move from analogue to digital will also translate into shift from a5 to a6 along with complete
integration of equipment to their HD-counterparts
Digital Broadcasting Subscriber Base – Growth
a
b
c
0
2016e
U
2015e
T
2014e
S
2013e
R
2012e
Q
2011
P
mn
a%
5. 5
Digital Broadcasting – Platforms
Mobile TV
Digital Cable
TV
•Digital Broadcasting cater to 5 platforms
•Each of the platforms require digital broadcasting as a means of technology for their transmission
•Inadvertently, individual segment’s growth gets translated into the overall sector’s growth
Digital Broadcasting
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
DTH
IPTV Digital Radio
6. 6
Drivers & Challenges – Summary
Drivers
Emerging middle class and rising
disposable income
Increase in television and radio
penetration
Complete digitization of TV services
Increase in sale of LCD and LED TVs
Challenges
High costs involved in digital
conversion
Shortage of set top boxes
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
7. 7
Government Participation – Summary
Initiatives
TRAI’s Regulation within the
sector
Cable TV Network
Amendment Bill 2011
FDI Ceiling
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
8. 8
Trends – Summary
Conversion of AIR to digital
framework
Penetration of mobile services in
the market
A-la-carte channels in the offing Headend-in-the-sky
Key
Trend
s
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
9. 9
SAMPLEPublic: Domestic Company – Company 1 (1/4)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Clace 1, Country 1
Tel No. +123456
Fax No. +123456
Website http://www.abc.in/
Year of Incorporation 19--
Ticker Symbol --
Stock Exchange --
Category Products/Services
E1 C1
Name Designation
P1 D1
P2 D2
P3 D3
P4 D4
Place
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
10. 10
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR -- mn in FY 20--, as
compared to net profit of INR -- mn in FY 20--
• The company reported total Income of INR -- mn in FY 20--,
registering an increase of p1% over FY 20--
• The company earned an operating margin of p2% in FY 20-- a
decrease of -- percentage points over FY 20--
• The company reported debt to equity ratio of -- in FY 20--, a
decrease of p3% over FY 20--
Financial Summary
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR) A1
Total Enterprise Value (INR) B1
EPS (INR) C1
PE Ratio (Absolute) D1
Profit / LossTotal Income
0
500
1,000
0
100
200
300
Profit
INR mn
Total Income
INR mn
20--
D
20--
C
20--
B
20--
A
Public: Domestic Company – Company 1 (2/4)
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
Particulars
y-o-y change
(20-----)
20-- 20-- 20--
Profitability Ratios
Operating Margin 2.43 -17.62% -20.05% -20.13%
Net Margin -27.19 -35.73% -8.53% -18.97%
Profit Before Tax Margin -7.80 -20.89% -13.08% -29.53%
Return on Equity -6.36 -11.57% -5.21% -12.90%
Return on Capital Employed 3.13 -4.70% -7.83% -8.50%
Return on Working Capital 20.26 -38.59% -58.85% -81.68%
Return on Assets -5.46 -8.31% -2.85% -6.65%
Return on Fixed Assets -13.41 -18.06% -4.65% -10.94%
Cost Ratios
Operating costs (% of Sales) -1.84 76.53% 78.37% 94.47%
Administration costs (% of Sales) -0.98 27.85% 28.83% 17.15%
Interest costs (% of Sales) 0.38 -3.60% -3.97% -4.02%
Liquidity Ratios
Current Ratio 101.64% 2.69 1.34 1.48
Cash Ratio -19.10% 0.15 0.19 0.36
Leverage Ratios
Debt to Equity Ratio -52.58% 0.39 0.83 0.94
Debt to Capital Ratio -50.90% 0.18 0.36 0.38
Interest Coverage Ratio -10.98% 5.10 5.73 5.29
Efficiency Ratios
Fixed Asset Turnover 1.13% 0.49 0.48 0.55
Asset Turnover -24.09% 0.22 0.29 0.33
Current Asset Turnover -57.29% 0.65 1.53 1.32
Working Capital Turnover -82.92% 1.04 6.07 4.07
Capital Employed Turnover -42.15% 0.31 0.54 0.64
11. 11
Public: Domestic Company – Company 1 (3/4)
Key Business Segments Key Geographic Segments
Key Information
Description Details
Overview
• B1 provides b2 and voice over b3 services, and engages in the manufacture and sale of
optic fiber cables as well
• It provides b4 services under the ‘b5’ brand name in Delhi and Mumbai
Extended Product
Portfolio
• B6, b7, b8, b9, b10
0%
50%
100%
p2%
p1%
20---
p3%
20--20--
p8%
p7%p4%
p5%
p6%
50%
100%
0%
p9%
20--
S1 S3S2 Country 1
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
13. 13
SAMPLEPrivate: Domestic Company – Company 1 (1/5)
Key People
Products and Services
Place
Company Information Offices and Centres – India
Registered Address Place 1, Country 1
Tel No. +123456
Fax No. +123456
Website http://www.abc.com/
Year of Incorporation 19--
Category Products/Services
E2 P1
Name Designation
P5 D5
P6 D6
P7 D7
Registered
Address
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
14. 14
SAMPLEShareholders of the Company Ownership Structure
Name No. of Shares held
Shareholder 1
Shareholder 2
Shareholder 3
Shareholder 4
Shareholder 5
Shareholder 6
Shareholder 7
Shareholder 8
Shareholder 9
Total
Private: Domestic Company – Company 1 (2/5)
30%
Shareholding Pattern as of AGM 4th Sep 20--
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
B%
A%
Bodies Corporate
Foreign Bodies
15. 15
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
Profit / LossTotal Income
0
200
400
600
800
1,000
-20
0
20
40
60
80
100
Profit
INR mn
Total Income
INR mn
20--
Y
20--
X
20--20--
• Company incurred a net profit of INR -- mn in FY 20--, as
compared to net profit of INR -- mn in FY 20--
• It reported total Income of INR -- mn in FY 20--,
registering an increase of r1% over FY 20--
• Earned an operating margin of r2% per cent in FY 20-- an
increase of -- percentage points over FY 20--
• The company reported debt to equity ratio of -- in FY 20--,
a decrease of r3% over FY 20--
Private: Domestic Company – Company 1 (3/5)
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
Particulars
y-o-y change
(20-----)
20-- 20-- 20-- 20--
Profitability Ratios
Operating Margin 69.15 73.01% 3.86% 6.05% -2.24%
Net Margin 2.34 11.49% 9.15% 11.18% 34.54%
Profit Before Tax Margin 4.65 12.67% 8.02% 12.89% 34.67%
Return on Equity 5.87 13.91% 8.04% 8.79% 34.57%
Return on Capital Employed 105.60 108.74% 3.14% 5.45% -2.97%
Return on Working Capital 55.91 77.81% 21.90% 43.72% 374.18%
Return on Assets 5.11 10.68% 5.57% 7.67% 34.37%
Return on Fixed Assets 9.21 23.38% 14.17% 32.94% 125.87%
Cost Ratios
Operating costs (% of Sales) -77.48 18.41% 95.89% 93.45% 103.67%
Administration costs (% of
Sales)
N.A. N.A. N.A. N.A. N.A.
Interest costs (% of Sales) 1.16 3.07% 1.91% 0.90% 3.12%
Liquidity Ratios
Current Ratio -32.18% 1.37 2.01 1.74 1.37
Cash Ratio 8.32% 0.43 0.40 0.34 0.47
Leverage Ratios
Debt to Equity Ratio -31.93% 0.30 0.44 0.13 0.00
Debt to Capital Ratio -24.53% 0.23 0.31 0.11 0.00
Interest Coverage Ratio 1136.40% 26.61 2.15 7.25 -1.18
Efficiency Ratios
Fixed Asset Turnover 25.00% 1.82 1.46 2.72 2.23
Asset Turnover 45.34% 0.83 0.57 0.63 0.61
Current Asset Turnover 43.22% 1.62 1.13 1.53 1.80
Working Capital Turnover 169.30% 6.06 2.25 3.61 6.63
Capital Employed Turnover 31.08% 1.08 0.83 0.73 0.61
16. 16
SAMPLEKey Recent Developments
Private: Domestic Company – Company 1 (4/5)
DIGITAL BROADCASTING MARKET IN INDIA 2015.PPT
Description News
Overview
• Operates as a subsidiary of -- and is one of the largest multi-system operator in the
country
• Has an - mn subscribers across -- cities and has -- channels in its digital offering
• Also has a c1 across India to cover their service locations
• Has - digital headends in Mumbai and Delhi with a capacity to broadcast -- channels each
Infrastructure
• Boasts of a broadband network of -- capacity with c2
• Has an extremely high c3 and low c4 or c5 as well as two way interactivity with c5
Future Outlook • Has plans to introduce value added services namely c6, c7, c8, c9, c10
18. 18
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