Prime Connect
- 1. Think India. Think PrimeConnect. Media Network & Distribution (India) Limited. Corporate presentation
- 2. India: An overview Population: 1.21 Bn Total Households: 234 mn Annual GDP USD 1.53 Tn • India has the world’s largest working population. • 65% of the population is under 35 years of age. 8 – Metros • Urban population contributes approx 60% to Indian GDP. 31 – 1+Million Towns
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- 4. Growth Driver: Growth of Income Maximumgrowth in percentage terms is expected in higher income households. 90,000 100% 79% 80,000 75% 80% No. of Households (‘000s) 70,000 50% 60% 60,000 45% 31% 40% 50,000 40,000 20% 1% 30,000 0% 20,000 -20% 10,000 -34% -40% <45 45 -9 0 90 -135 130- 180 180- 200 200 -1 000 1000+ Annual Household Income (Rs.’000) 2005-06 2009- 10 Growth (09 -10) Source: NCAER & Technopak Analysis The higher income group are willing to experience premium products for their ‘emotional value’ & exclusive feel.
- 5. Growth Driver: Increasing Discretionary Spends 27% 30% 40% 36% 2003 2008 4% 4% 9% 10% 20% 20% 32% 32% 2013 5% Food & Grocery 11% 20% Savings & Investment Source : Technopak Analysis & HUL Presentation 2008 Continuous disposable Income growth is propelling demand for better quality services.
- 6. Growth Driver: Growth across varioussectors FMCG Sector Retail CAGR 12% 74 CAGR 6% 755 43 535 USD Bn USD Bn 25 410 2008 2013 2018 2008 2013 2018 Healthcare* Hospitality CAGR 15% 136 CAGR 6% 42 39 68 23 USD Bn USD Bn 34 2008 2013 2018 2008 2013 2018 Source : Technopak Analysis *Healthcare excluding Pharma Sector The growth of Indian Economy is set to out pace China’s Economy in year 2012 as per the World Bank estimates.
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- 8. An Overview Total HH - 234 Total TV household - 130 25 Analog Total C&S - 103 DTH 10 Digital 68 Figures in Millions TV is one of the most attractive advertising medium due to its large reach and potential for increase in penetration.
- 9. Density of C&S Homes in India HIGHLY FRAGMENTED MARKET •Unique, large and diverse multi- cultural consumer market -Spread over 3.2 Million square kms. • 70% of the population live in rural areas-The most difficult terrains to map. • 74% of the market controlled by - 50,000 + LCO’s. Over 5 mn homes 4 - 5 mn homes 2 - 4 mn homes Less than 2 mn homes
- 10. Despite all liberalizations, doing business in Indiais not simple as it is perceived to be...
- 11. India: A ChallengingMarket Distribution – The Key to World’s Second Largest C&S Market • With 103 million C&S households, distribution remains the most difficult and decisive part for the success of any broadcaster. • Distribution is heavily front loaded in terms of investment in infrastructure & subscriber acquisition cost (which goes as high as 80$ per subscriber) • With an high upfront capital expenditure and minimum break even period of 5 - 7 years, profitability remains a distant dream for independent broadcasters
- 12. India: A ChallengingMarket India is lowest in terms of ARPU
- 13. India: A ChallengingMarket Low Subscription Revenue Flow to the Broadcaster Under Declaration Of Subscribers by Cable Operators resulting in large subscription losses to the Broadcasters
- 14. India: A ChallengingMarket Carriage Fee 450 • Carriage fee is the second 400 400 highest cost in a channel 350 In Million USD portfolio, consuming 40 to 50% 300 289 250 of the operating cost. 267 200 150 140 • With 150+ channels awaiting 100 approval from the Govt, 50 the cost is likely to shoot up 0 2006 2008 2010 2011 further. carriage fee Carriage Fee Trend for the C&S Industry
- 15. India: A ChallengingMarket Political & Regulatory Issues • Unending extension of the deadlines set by the government for digitization of the cable TV network Ini al deadline Revised deadline Proposed new set in 2005 set in 2008 deadline 2007 2013 2015(p) • Intervention and control of pricing of channels. • Complex tax structure and regulations.
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- 17. Media Network & Distribution (India) Ltd • An independentdistribution platform that will organize and distribute channels through various means namely MSO/ DTH/ IPTV and all emerging digital platforms across homes and commercial establishments. • Joint Venture between India’s biggest media house, Bennett & Coleman Company Limited (BCCL) and Television industry’s most respected veteran Mr. Yogesh Radhakrishnan. The new identity for independent broadcasters
- 18. Promoters Bennett, Coleman &Company Limited (BCCL): • India’s most diversified media company in world’s fastest growing media market. • Strong heritage Of 172 years and a dominant position across key market segments like TV, Print and Online Media. • Leading urban upscale audiences across India & India diaspora for its 4 leading television channels. • House of Power Brands and annual revenues exceeding a billion US Dollars.
- 19. BCCL Traversing The Media Continuum Source : AIR– Average Issue Readership IRS 2010 Q3; 1 internal MIS Dec ’10; 2 TAM : CS 15+ All India; 3&4 TAM; 5ComScore Worldwide Dec ‘10
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- 21. Promoters Yogesh Radhakrishnan :MD & CEO • A veteran and a pioneer in the C&S industry having more than 25 years experience. • Co-Founded two of the largest MSO’s in India. • Co-Promoter of ‘Movies Now’, India’s No.1 English Movie Channel. • Created & Launched International channels for ZEE & strengthened their position in the International market. • Co-founded & Promoted ETC Music network and ETC Punjabi network, both market leaders in their own genres. • His experience and expertise has revolutionized the C&S industry in India and has given the Indian audience the chance to experience the wonders of television
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- 23. Prime Connect -Enhancing the Reach for Times Now Times Now NDTV CNN IBN Headline Today Source: TAM Peoplemeter System; TG: 25+ M AB; Time Period: 27 June’10 (Wk 27) to 9 Apr’11 (Wk 15); All Day; Markets: All India 1 Mn+ • Since last 45 weeks, Times Now has been able to maintain its leadership position, by reaching maximum number of English News viewers. • Since MNDIL launch (in week 37-38), Times Now was able to consolidate its market leadership by increasing reach in past few weeks. • Times Now currently reach around 16% of all India 1 Mn+ English News viewers as compared to 14% reach of its close competitor.
- 24. Prime Connect -Enhancing the Reach for ET Now ET Now CNBC TV18 Bloomberg UTV Source: TAM Peoplemeter System; TG: 25+ M AB; Time Period: 27 June’10 (Wk 27) to 9 Apr’11 (Wk 15); All Day; Markets: All India 1 Mn+ • Since MNDIL launch (in week 37-38), ET Now is able to gain over 20% incremental reach compared to pre-launch phase. (ET Now avg reach 6.1 (Wk 27-37 ’10) to 7.5 (Wk 4-15 ’11) • Post MNDIL launch, ET Now was able to reach maximum number of English Business News Viewers in All India 1 Mn+ markets.
- 25. Prime Connect -Enhancing the Reach for ZOOM Zoom MTV Channel V 9XM Bindass Source: TAM Peoplemeter System; TG: 15-24 AB; Time Period: 27 June’10 (Wk 27) to 9 Apr’11 (Wk 15); All Day; Markets: HSM 1 Mn+ • Since MNDIL launch (in week 37-38), Zoom is able to gain over 18% incremental reach compared to pre-launch phase. (Zoom avg reach 32 (Wk 27-37 ’10) to 38 (Wk 4-15 ’11) • Post MNDIL launch, Zoom was able to reach maximum number of Music and Youth content viewers in All India 1 Mn+ markets.
- 26. Movies Now – The Success Story Movies Now Star Movies HBO Pix Source: TAM Peoplemeter System; TG: 15-34 AB; Time Period: 27 June’10 (Wk 27) to 9 Apr’11 (Wk 15); All Day; Markets: 8 Metros Within few weeks of its launch, Movies Now managed to achieve highest reach in the genre. Currently, it achieves around 20% reach and is the No 1 channel of the genre.
- 27. Healthy 13 Week Average Relative Channel Share Percentage 2% 5% 5% Movies Now 13% 36% HBO Star Movies PIX 24% Zee Studio 15% World Movies WB MOVIES NOW continues to maintain its top slot since inception.
- 28. Prime Connect Advantages Prime Connect Maximize Reach Lead by the most respected industry veteran Mr. Yogesh Radhakrishnan Research based Strategy Model for independent Broadcasters Proven track record: MOVIES NOW at the top since the launch
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