The Indian media and entertainment industry grew 12% in 2011 to $728 billion. While advertising growth was strong in the first half, it slowed in the second half. The emergence of digital distribution benefited films and music. Cable digitization and digital music consumption increased. Looking ahead, growth is projected to continue but may be modest due to a conservative economic outlook. The television, print, and film industries remained the largest segments. Regional media, digital advertising, and gaming are growing segments in the evolving new media landscape.

1. Indian Media & Entertainment Industry 2012

2. YEAR 2011
• 2011 has been a dynamic year for the Indian Media & Entertainment (M&E)
industry - A year in which the transformation of the industry began to take hold.
• It was also a year of mixed fortunes, with advertising growth being robust in the
first half (January to June), and muted in the second (July to December).
• The long promised digital ecosystem began to impact various segments.
• Film saw benefits from digital distribution with wide releases and early capture
of revenue
• Cable digitization got underway
• The music industry grew on the back of consumption of digital music.
• Going forward as well, the outlook for the economy remains conservative, and
the muted growth rates seen in the latter part of the year may continue into the
first 6 months of 2012.

3. CONTENTS
• MEDIA & ENTERTAINMENT INDUSTRY IN 2011
- Television
- Print
- Films
- Radio
- Music
- Out of home
•THE EMERGING PICTURE
•NEW MEDIA
•DEAL ACTIVITY

5. MEDIA SCENERIO- INDIA
• 146 million television
households
• Over 825 channels
• 82,000 newspapers
• 181.91 million readership
• 132 million internet users
• 44.21 million private DTH
subscribers
• 903 million wireless
subscribers
• 245 Private FM channels

6. INDUSTRY SIZE & PROJECTIONS
• The Indian M&E industry grew from INR 652 billion in 2010 to INR 728
billion in 2011, registering an overall growth of 12 percent.
• Strong consumption trends in Tier 2 and 3 cities
• Continued growth of regional media and fast increasing new media
businesses.
• The industry is estimated to achieve a growth of 13 percent in 2012 to
touch INR 823 billion.
• The sector is projected to grow at a healthy CAGR of 14.9 percent to
reach INR 1,457 billion by 2016.
• Television continues to be the dominant medium
• Animation and VFX, digital advertising and gaming are fast increasing
their share in the overall pie.
• Radio is expected to display a healthy growth rate after the
implementation of Phase 3.
• Print, while witnessing a decline in growth rate, will still continue to be
the second largest medium in the Indian M&E industry.

7. INDUSTRY SIZE & PROJECTIONS

8. ADVERTISING TRENDS &
•PROJECTIONS media accounted for INR 300 billion in
Advertising spends across all
2011, contributing to 41 percent of the overall M&E industry
revenues.
• Advertising revenues witnessed a growth of 13 percent in 2011 as
against 17 percent observed in 2010.
• Print is the largest contributor accounting for INR 139 billion and 46
percent of the advertising pie.
• It is expected to continue being the most dominant medium for
next 5 years, despite the threat from new digital platforms.
• Advertising spends are expected to grow at a CAGR of 14 percent
to reach INR 586 billion in 2016.

9. ADVERTISING REVENUE-
GLOBAL

10. ADVERTISING REVENUE- INDIA

11. CONTRIBUTION- PERCENTAGE-
ad revenues of share of ad spend
overall industry size by media

12. KEY THEMES and TRENDS
•GOING FORWARD
Growth drivers for multiplex exhibitors
Digital technology continues to revolutionize media distribution
• Media on the go: Proliferation of New age user devices
Media consumption more personal than ever (Smart phones, tablets, PCs,
gaming devices, etc.)
• Regional markets bucking the recessionary trends and continuing
growth momentum
• Increasingly savvy and ‘new age’ consumers
•Integration and innovation across traditional and new media, changing
media consumption habits and preferences for niche content, more touch
points to engage with audiences.
• M&E still an advertising revenue dependant industry
• Awaited Regulatory shifts
Digitization for cable, Radio licensing implementation of Phase 3,
copyright clarification for Radio and the roll out of 4G.

14. INTRODUCTION
• Television is the largest medium for media delivery in India in terms of
revenue, representing around 45 percent of the total media industry.
• Television penetration in India is still at approximately 60 percent of total
households.
• India continues to be the third largest TV market after USA and China with 146
million television households.
• Cable and Satellite (C&S) penetration of television households is close
to 80 percent.
• The over-all television industry was estimated to be INR 329 billion in 2011, and
is expected to grow at a CAGR of 17 percent over 2011-16, to reach INR 735 billion
in 2016.
• The share of subscription to the total industry revenue is expected to increase
from 65 percent in 2011 to 69 percent in 2016.
• Significant increase in advertisement inventory, advertisement rates have
generally remained flat or declined in 2011.
• However, with a large number of untapped advertisers who are currently using
only the print platform, there is potential for further growth for TV.

15. TV INDUSTRY SIZE

16. SIGNIFICANT potential for growth

17. GROWTH in no. of GROWTH in TV
paid C&S viewing time
households

18. AVERAGE REVNUE PER UNIT

19. NO. OF SUBSCRIBERS

20. KEY ADVERTISERS
- Advertisement inventory levels increased by 14 percent in 2011, driven by a
higher number of channels and commercial time per hour of programming.

21. TOP 10 CATEGORIES ADVERTISING
ON TV • FMCG continued to be the
dominant sector, representing 43
percent of ad volumes.
• The top 10 sectors accounted for
around 60 percent of the overall
TV advertising volume share
during 2011.
• Within services, DTH was the
largest category, followed by real-
estate.
• Newer categories of advertisers
such as internet / new media
companies use the television
medium, with advertisers such as
Flipkart, Justdial, Quickr etc.

22. TOP VIEWERSHIP
ADVERTISERS SHARE BY
ON TELEVISION GENRES

23. REGIONAL MARKET SIZE

24. LANGUAGE-WISE CHANNEL SHARE

26. INTRODUCTION
• INR 209 billion print industry grew by 8.4 percent from INR 193 billion in
2010.
• The growth in advertisement revenues has been at a CAGR of 8.7
percent, whereas circulation revenues have displayed a CAGR of 3.7
percent between 2007 and 2011.
• The advertisement revenues continued to be the main source of revenue
for the print industry, contributing 67 percent to industry’s revenues.
• The big spending sectors such as education, BFSI and retail tightened
budgets.
• The newspaper advertisement volumes increased from 238 million
column centimetre of ad space in 2010 to 280 million column centimetre
in 2011.
• The industry also saw a 22 percent increase in the number of advertisers.

27. ADEVERTISING VS. CIRCULATION
MIX

28. DAILY PRINT AD VOLUMES

29. TOP CATEGORIES ADVERTISED ON
PRINT

30. NEWSPAPER VS. MAGAZINE

31. RISE OF NEW CONSUMPTION
CENTERS
Focus is now shifting to the next 40 cities…

32. RISE OF NEW CONSUMPTION
CENTERS

33. AIR OF TOP 10 AIR BY
DAILIES LANGUAGE

34. LANGUAGE-WISE REVENUE &
READERSHIP SPLIT
• Together, the Hindi and Vernacular markets are expected to grow at a
CAGR of 10.9 percent over the period 2011-16, outpacing the English
language market’s growth of 6.3 percent.
• The pan India reach of regional newspapers is 173.80 million compared
to only 22.21 million in case of English newspapers.

35. TOP STATES BY PER CAPITA
INCOME

36. TOP 5 PUBLICATIONS BY
READERSHIP-MAHARASHTRA
Global trends
•Audience shift from print to online
•Content aggregators corner a larger slice of the advertising pie
•Online channels of distribution continue to explode
•Younger generation demands on-the-move accessibility

37. PRINT PENETERATION- URBAN VS.
RURAL SPLIT

38. FUTURE OUTLOOK

40. INDUSTRY PERFORMANCE &
PROJECTIONS
• The Indian film industry was estimated to be INR 93 Billion in 2011 indicating a
growth of 11.5 percent vis-à-vis 2010.
• 26 percent growth in Cable and satellite rights.
• Ancillary revenues such as licensing and merchandising, in-cinema advertising and
pay per view also displayed strong growth in 2011.

41. REVENUE SPLIT
2011 2016P

42. SCREEN AVERAGE
DENSITY- per REVENUE MIX
million population of multiplex

43. CINEMA ADVERTISING
• The cinema advertising market has grown at a robust 18 percent in
2011 to reach INR 140 Crs.
• Digital cinema providers such as UFO Moviez and Real Image have
cornered the bulk (~ 70percent) of this advertising revenue while film
exhibitors take the rest of the pie.
• Advertising revenue is expected to contribute to 30 percent of total
digital cinema revenue this year as compared to 24 percent in the last
financial year.
• Cinema advertising is projected to account for a sizeable share (~ 40
percent) of revenue for digital cinema providers in next few years.

45. DIGITAL MEDIA
• New media continued its growth trajectory in 2011, with estimated
growth in advertising revenues in excess of 40 percent over last year.
Coming in at approximately INR 15.4 billion in revenue in 2011.
• Digital ad spend reached approximately 5 percent of total media and
entertainment industry advertising revenue.
• This share is expected to continue to grow over the coming years,
driven by significantly higher growth rates in online advertising spend
compared to traditional media.
• Continued growth in internet penetration and mobile device access
is expected to drive consumption, and hence revenue growth.

46. INTERNET VS. ACTIVE
TV INTERNET
PENETRATION ENABLED
SMART PHONES

47. PENETERATION TIME SPENT
OF ACTIVITIES- ON SMART
internet users PHONE

48. DIGITAL ADVERTISING MARKET

49. INTERNET INTERNET
SHARE OF SHARE OF
WORLD AD INDIA AD
SPEND SPEND

50. PORTALS & SOCIAL MEDIA

51. ONLINE CLASSIFIEDS

52. ONLINE CLASSIFIED SEGMENTS

54. INTRODUCTION
•The industry grew at 15 percent in CY 2011 to reach INR 11.5 billion
compared to INR 10 billion in CY 2010.
• The ad rates in metros increased by ~7-10 percent and the utilization was
also slightly better.
• Smaller cities the stations witnessed similar growth of 15 percent-18
percent in ad revenues driven largely by increased utilization as ad rates
remained steady.
• Utilization levels are now in the 70-85 percent range in the top eight
metros, and in the 50-65 percent range in key non metros, leaving room for
volume growth.
• Players like Radio Mirchi and HT Media reporting growth rates above 35
percent on a quarter on quarter basis.

55. REVENUE GROWTH

56. TOP CATEGORIES ADVERTISED ON
RADIO

57. PROJECTED REVENUE GROWTH
• Increased listenership of radio on mobiles
• Content differentiation
• Targeting newer segments and geographies
• Activations / events business

59. INDUSTRY OVERVIEW
• The Indian music industry achieved revenues of INR 9 billion in
2011, registering a growth of 5 percent over 2010.
• The industry witnessed a 19 percent Y-o-Y decline in sales of
physical music, which was compensated by a significant jump of 24
percent Y-o-Y in digital music consumed.
• New trends- Different digital platforms such as pay per download,
unlimited music streaming and subscription based music services.
• Film music (both Bollywood and regional film music) continues to
approximately 70 percent to the industry’s revenues.
• The younger generation is now being exposed to newer genres,
leading to a growing demand for non-film music.
• This trend was reflected in greater investments by the music
industry to identify and promote independent artists, and also in
increased traction in live performances.

60. INDUSTRY PERFORMANCE

61. PHYSICAL VS. DIGITAL SALES
• The digital music industry stood at INR 5.2 billion in 2011 making up 58 percent of
the revenues of the music industry. The industry grew at 24 percent Y-o-Y compared
to 2010 and is expected to touch INR 14.3 billion by 2016.
• Mobile contributes roughly 90 percent to the total sales

62. KEY TRENDS & DEVELOPMENT
• App-economy enhances music consumption
• Emerging Business Models
• Power of Social Media
• Rise of independent music (Live From the Console, Folktronic
and Zomba)
• Viral Marketing
• Labels embrace band management
• Reviving the era of LPs
• Regional music – the next frontier of growth
• Music publishing to take off in India

63. LIVE MUSIC
• The number of live events in the country has increased by nearly
15-20 times between 2004 and 2011.
• India had approximately 300-400 live events IN 2004, the number
increased to 6000-7000 in 2011 with ticket prices also increasing
substantially.
• The daily audience count of the three-day long NH7 Weekender
music festival in Pune soared to nearly 10,000 in 2011 from 3,500 in
2010.
•Many international artists made their India debut, including pop
artist Lady Gaga, rapper and singer, Pit bull etc.
• Industry discussions reveal that ticket prices have been growing
steadily, with the average ticket price for a live concert now being in
the range of INR 2000-2,500.
• The concert tickets of Indian artists such as Shankar and A.R.
Rahman were sold for INR 1000-2000 per ticket.

64. MAJOR MUSIC EVENTS held in 2011

65. HURDLES FOR GROWTH OF LIVE
MUSIC
• Lack of infrastructure and venues: (the cities in Europe and America have at least
50 standing venues where a performer just needs to plug in and play, there is
not a single such venue in India).
• Licenses: The organizers require a host of permissions for hosting a live event.
Getting these clearances and licenses is a cumbersome task for the organisers.
• Entertainment tax: High rate of entertainment tax on the live shows is another
factor stunting the growth of live concerts.
• Security Concerns: Most international artists are reluctant to perform in India
owing to security concerns (Bryan Adams and Metallica in Gurgaon had to be
cancelled at the last moment due to lack of security arrangements).
• Dependence on sponsors: Most events in India are sponsorship driven rather than
ticket sales driven. As per industry estimates, 60 percent of the revenue is
generated from sponsorship and only 25 percent from the ticket sales. Hence
many events suffer from the fickleness of the sponsors.

66. FUTURE THEMES
• Music on cloud
• Technology transforming music
• Music discovery to become easier
• Video Consumption to rise

67. FUTURE OUTLOOK

69. OUTLOOK FOR THE YEAR
•Industry spent approximately INR 17.75 billion in 2011 on Out-of-
Home (OOH) advertising which amounts to approximately 5 percent
of total advertisement spends.
• The OOH sector was hit relatively harder than other sectors of the
Advertising industry and the sector registered a Y-o-Y growth of 7.6
Percent.

70. CONTRIBUTION OF VARIOUS
SECTORS
• The Industry saw a reduction in spends by telecom players, who
were the leaders in the last five years.
• This was offset by increased spend by auto companies, Entry of web
based E-commerce companies, thrust in the entertainment space
driven by release of large budget movies, TV channels and DTH, and
increased real estate spends.

71. REVENUE SPLITS BY FORMATS

72. FUTURE OUTLOOK

74. OVERVIEW
• The year saw mergers and acquisitions
and private equity funding clocking over
1000 deals and contributing over USD 50
billion.
• Deal activity in the M&E sector
witnessed a significant uptrend in 2011
with 42 transactions valued at USD 940
million as compared to 27 transactions
valued at USD 693 million in 2010 and
27 transactions valued at USD 722
million in 2009.
• Television was the largest
contributor, accounting for USD 320
million of the total deal value.

75. KEY DEALS