Media And Entertainment Industry


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  • FDI Policies for Broadcasting TV Software Production - 100% foreign investment allowed subject to: (i) All future laws on broadcasting and no claim of any privilege or protection by virtue of approval accorded, and (ii) Not undertaking any broadcasting from Indian soil without Government approval Setting up hardware facilities, such as uplinking, HUB, etc. - Private companies incorporated in India with permissible FII/NRI (Non Resident Indian)/PIO (Persons of Indian Orgin) equity upto 49% of paid up share capital (inclusive of both FDI and portfolio investment) to set up uplinking hub (teleports) for leasing or hiring out their facilities to broadcasters Note: As regards satellite broadcasting, all TV channels irrespective of management control to uplink from India provided they undertake to comply with the broadcast (programme & advertising) code Cable Network - Foreign investment allowed up to 49% (inclusive of both FDI and portfolio investment) of paid up share capital. Companies with minimum 51% of paid up share capital held by Indian citizens are eligible under the Cable Television Network Rules (1994) to provide cable TV services Direct-to-Home - Maximum foreign investment of 49% equity including FDI/NRI/FII allowed. Within the foreign equity, the FDI component should not exceed 20%
  • FDI Policies for Broadcasting Terrestrial Broadcasting FM - The licensee should be a company registered in India under the Companies Act. All shareholding should be held by Indians except for the limited portfolio investment by FII/NRI/PIO/OCB subject to such ceiling as may be decided from time to time. Company should not have any direct investment by foreign entities, NRIs and OCBs. As of now, the foreign investment is permissible to the extent of 20% portfolio investment Terrestrial TV - No private operator is allowed in terrestrial TV transmission Establishment and Operation of Satellite - FDI up to 74% is permitted with prior Government approval FDI Policies for Print Media FDI up to 100% is permitted in publishing/printing scientific & technical magazines, periodicals & journals FDI up to 26% is permitted in publishing News Papers and Periodicals dealing in News and Current Affairs subject to verification of antecedents of foreign investor, keeping editorial and management control in the hands of resident Indians and ensuring against dispersal of Indian equity. The largest shareholder must hold minimum of 51% equity and three/fourth of all the directors and executive and editorial staff should be resident Indians
  • Mass Entertainment channels focus mainly on family soaps, sitcoms, reality shows and movies Sony Entertainment Network, Star Plus (Newscorp), Zee TV, Sun TV and Vijay TV are some of the mass entertainment channels ESPN-Star Sports and Ten Sports are the two leading sports channels while CNN-IBN and NDTV are the two leading business channels in India
  • Other leading players in the Indian Television & Radio Industry Turner International TEN Sports MTV India TV18 Times Now BBC NDTV India Nimbus Communications Ltd. UTV Software Communications Ltd. Balaji Telefilms Hathway Datacom Pvt. Ltd. Incable Network Radio Mirchi
  • Many Hollywood films like Titanic, Spiderman, Jurassic Park, Anaconda, Harry Potter have done very well in India with collection running into millions of US dollars. Most of the Hollywood films are being launched in India in English as well as dubbed in Hindi and many regional languages to tap into the maximum potential market Digitisation of movie theatres is adding to the pleasure of watching movies, while making a lot of commercial sense for film producers and theatre owners who are enjoying higher occupancy rates
  • Other leading players in the Indian Print Media Dainik Bhaskar Dainik Jagran Hindustan The Deccan Chronicle Amar Ujala The Telegraph India Today Outlook Grihshobha
  • Media And Entertainment Industry

    1. 1. Media & Entertainment
    2. 2. ROADMAP <ul><li>Overview of Indian Media & Entertainment Industry </li></ul><ul><li>Entertainment sector </li></ul><ul><li>India Film Industry – Multiplex </li></ul><ul><li>Media Sector </li></ul><ul><li>Career opportunities for MBA’s in this industry </li></ul><ul><li>Primary Information </li></ul>
    3. 3. Indian Media & Entertainment Industry - Zooming ahead <ul><li>Current Market Size is estimated at Rs. 61,000-crore </li></ul><ul><li>Expected to reach Rs. 1,05,200-crore by 2013, at a CAGR of 19% </li></ul><ul><li>Maximum growth expected in Television and Film segments </li></ul><ul><li>More than 300 national and regional TV channels </li></ul><ul><li>Close to 1000 films made every year </li></ul><ul><li>Liberal FDI policies across all the segments of the industry </li></ul><ul><li>Government focusing on regulations to give further impetus to the industry. </li></ul><ul><li>Source: IMaCS Analysis, FICCI-PWC Frames 2006 Report </li></ul>
    4. 4. Major constituents <ul><li>Breakup of Indian Media & Entertainment Industry </li></ul>Live Entertainment 2% Internet Advertising 0.3% Outdoor Advertising 2.5% Print Media 30.9% Radio 0.8% Films 19.3% Music 2.0% Television 41.9%
    5. 5. Key Drivers of the Indian M&E Industry Key Drivers Consumerism Advertising spend Pricing Content Technology Regulation
    6. 6. Source: IMaCS Analysis (b) up to 26% in publishing News Papers and Periodicals dealing in News and Current Affairs subject to a few conditions (a) up to 100% in publishing/printing scientific & technical magazines, periodicals & journals 3. Print Media for the full value chain like film financing, production, distribution, exhibition and marketing upto 100% 2. Films upto 100% through the automatic route 1 . Advertising Guidelines for Foreign Direct Investment in the Indian M&E Industry
    7. 7. FDI Regulations for Indian M&E Industry…2 a)TV Software Production 100% foreign investment allowed subject to a few conditions b) Setting up hardware facilities, such as uplinking, HUB, etc. upto 49% paid up share capital c) Cable Network upto 49% of paid up share capital. d) Direct-to-Home Maximum foreign investment of 49% paid up share capital include e) Terrestrial Broadcasting FM to the extent of 20% of the paid up share capital of the company. The licensee should be a company registered in India under the Companies Act. f) Establishment and Operation of Satellite FDI up to 74% is permitted with prior Government approval 4. Broadcasting Guidelines for Foreign Direct Investment in the Indian M&E Industry Source: IMaCS Analysis
    8. 9. ENTERTAINMENT TV MULTIPLEX AMUSEMENT PARK <ul><li>STAR TV </li></ul><ul><ul><li>ZEE TV </li></ul></ul><ul><li>SONY PICTURES </li></ul><ul><ul><li>ADLABS FILMS </li></ul></ul><ul><li>PVR CINEMAS </li></ul><ul><li>INOX LEISURE </li></ul><ul><ul><li>ESSEL WORLD </li></ul></ul>
    9. 10. Porter’s Five Forces Analysis of Entertainment Industry
    10. 11. <ul><li>Bargaining Power of Consumer(High) </li></ul><ul><li>Consumer can switch channels </li></ul><ul><li>Increased globalization </li></ul><ul><li>Availability of a variety of alternative sources of entertainment </li></ul><ul><li>Threat of New Entrants(Low) </li></ul><ul><li>High sunk costs </li></ul><ul><li>High capital requirement </li></ul><ul><li>Difficult access to distribution </li></ul><ul><li>Steeper learning curve because of mature market </li></ul>
    11. 12. <ul><li>Competitiveness within the Industry(High) </li></ul><ul><li>Highly Fragmented Industry </li></ul><ul><li>High Fixed Cost </li></ul><ul><li>Highly perishable products </li></ul><ul><li>Highly diversified rivals </li></ul><ul><li>Bargaining Power of Suppliers(Low) </li></ul><ul><li>Decreasing bargaining power of suppliers </li></ul><ul><li>Increasing number of content providers </li></ul>
    12. 13. <ul><li>Threat of Substitutes </li></ul><ul><li>Film Industry </li></ul><ul><li>Significant sporting events like World Cups </li></ul><ul><li>Significant cultural events </li></ul><ul><li>Print media </li></ul><ul><li>Internet </li></ul>
    13. 14. Source: TAM Media Research Genrewise Television Viewership Share in India 39% 38% 5% 8% 2% 4% 3% 1% News Channels Sports Channels Mass Entertainment Hindi Film Channels Kids Channels Regional Channels English Entertainment Music Channels
    14. 15. Largest TV network with 19 channels reaching 90% of the population Entered in 1991 and offers more than 10 channels in mass entertainment, sports, news,, music, movies etc. Pioneers of the Indian Television industry with 22 channels. It is present in broadcasting, cable distribution, production and distribution of films, creation of animation software Present with 3 channels focusing on Hindi entertainment and sports Based in South India with 14 channels in four languages and offers news, movies, music, kids shows. Present in India through two kids channels and has recently bought one more kids channel
    15. 16. Zee Televisions <ul><li>Launched in the October 1992 & keeps tab with 167 countries </li></ul><ul><li>Reach to about 500 million viewers globally including USA, Canada , Europe, Africa, the Middle East, South East Asia, Australia and New Zealand </li></ul><ul><li>Key driver of the growth of cable and satellite industry in India for the last 16 years </li></ul><ul><li>Largest producer and aggregator of Hindi programming in the world, with more than 80,000 hours of original programming in the library </li></ul><ul><li>Ranked as the ninth most popular brand within a decade of its launch. </li></ul>
    16. 17. SWOT analysis of Zee Entertainment <ul><li>Strengths </li></ul><ul><li>High viewership ratings </li></ul><ul><li>Complete bouquet of channels </li></ul><ul><li>High subscription revenues </li></ul><ul><li>Weaknesses </li></ul><ul><li>Lagging behind Star Plus </li></ul><ul><li>Problem of attrition </li></ul><ul><li>Increase in operating costs </li></ul><ul><li>Opportunities </li></ul><ul><li>Benefit from the robust growth of the Entertainment and Media sector </li></ul><ul><li>Digitization </li></ul><ul><li>Threats </li></ul><ul><li>Slowdown in India's economic growth </li></ul><ul><li>Increased competition </li></ul><ul><li>Declining viewership and revenue share of GEC channels </li></ul>
    17. 18. Financial Performance <ul><li>Ad Sales Up 25%; Net Profit Up 21% in Q2 FY10 </li></ul>Consolidated Rs. Million Sep 09 Jun 09 QoQ Net Profit 1109 913.2 21.44% Revenue 5405 4759.3 13.57% Expenses 3897 3664.2 6.35% Ad Revenues 2476 1979.6 25.08% Subscription Rev 2435 2409.8 1.05% DTH Subscription 514 467 10.06%
    18. 19. Star TV <ul><li>Launched in 1991 </li></ul><ul><li>Leading the Indian television industry for 5 years </li></ul><ul><li>Expected to continue growing rapidly and reach INR 371 billion by 2010 </li></ul><ul><li>Extended business to filmed entertainment, television production, cable systems and wireless and digital services in Asia in partnership with other companies </li></ul><ul><li>Employees at STAR is approximately 1,800 in Hong Kong, India, Taiwan, Mainland China, Dubai, Singapore, Korea, the Philippines, Pakistan, Thailand, Japan and London </li></ul>
    19. 20. OPPORTUNITIES <ul><li>STAR has expanded by launching several regional channels </li></ul><ul><li>Prime source of growth, as much of the untapped potential is in the rural markets </li></ul>
    20. 21. Sony Pictures <ul><li>Subsidiary of Sony Corporation of America </li></ul><ul><li>Provides entertainment to about 130 countries </li></ul><ul><li>Specializes in Movies, Television, Home Entertainment and Games </li></ul><ul><li>Available on the World Wide Web </li></ul>
    21. 22. SWOT analysis of Zee Entertainment <ul><li>Strengths </li></ul><ul><li>High viewership ratings </li></ul><ul><li>Complete bouquet of channels </li></ul><ul><li>High subscription revenues </li></ul><ul><li>Weaknesses </li></ul><ul><li>Lagging behind Star Plus </li></ul><ul><li>Problem of attrition </li></ul><ul><li>Increase in operating costs </li></ul><ul><li>Opportunities </li></ul><ul><li>Benefit from the robust growth of the Entertainment and Media sector </li></ul><ul><li>Digitization </li></ul><ul><li>Threats </li></ul><ul><li>Slowdown in India's economic growth </li></ul><ul><li>Increased competition </li></ul><ul><li>Declining viewership and revenue share of GEC channels </li></ul>
    22. 23. Rating Points & Market Share
    23. 24. Indian Film Industry <ul><li>Raja Harishchandra (1913), by Dadasaheb Phalke, was the first film made in India. </li></ul><ul><li>Largest in the world in terms of number of films produced per year. </li></ul><ul><li>FICCI-KPMG study values US$ 2.11 billion and projects growth at 9.1 per cent till 2013. </li></ul>
    24. 25. Contd… <ul><li>90 years old, accorded the status of industry only in 2000. </li></ul><ul><li>Has 11500 existing screens, 95% are standalone, single screens. </li></ul><ul><li>China - 65,000 screens & US - 36,000 . </li></ul>
    25. 26. Growth Drivers <ul><li>Increasing investment in film production </li></ul><ul><li>Reducing shelf life of movies making multiplex the ideal format for distributors </li></ul><ul><li>Encouraging regulatory environment </li></ul><ul><li>People willing to pay for quality </li></ul>
    26. 27. Risk & Concerns <ul><li>Slowdown in content supply </li></ul><ul><li>Alternative entertainment avenues </li></ul><ul><li>Mall development delays </li></ul><ul><li>Uncertainty over entertainment tax </li></ul><ul><li>Great success of IPL </li></ul>
    27. 28. Breakup of Indian films market Source: IMaCS Analysis, Industry estimates 5 4 % 2 % 2 % 1 0 % 1 7 % 1 5 % 1 % 8 % H i n d i C r o s s o v e r H i n d i T a m i l T e l u g u F o r e i g n M a l a y a l a m B e n g a l I O t h e r s
    28. 29. Key Players in Multiplex <ul><li>PVR Cinemas </li></ul><ul><li>INOX Leisure </li></ul><ul><li>ADLABS Films </li></ul><ul><li>FAME India </li></ul><ul><li>CINEMAX </li></ul>
    29. 30. PVR Cinemas <ul><li>JV between Priya Exhibitors Private Limited and Village Roadshow Limited </li></ul><ul><li>began its commercial operations in June 1997 </li></ul><ul><li>As of 2009, PVR has a total of 106 screens in 26 multiplexes across India </li></ul><ul><li>India's largest multiplex, PVR Bangalore, which has 11 screens. </li></ul>
    30. 31. PVR <ul><li>Aggressive expansion plans-100 screen in coming two years </li></ul><ul><li>Leading Multiplex operator- 18 million patrons in FY08, highest numbers among all the multiplex players </li></ul><ul><li>Entertainment tax burden to decline </li></ul>
    31. 32. INOX Leisure <ul><li>Diversification venture of the INOX group into entertainment and is a subsidiary of Gujarat Flourochemicals Ltd. </li></ul><ul><li>first multiplex in Pune in 2002 </li></ul><ul><li>operates 29 multiplexes and 105 screens in 20 cities </li></ul>
    32. 33. INOX Leisure <ul><li>Expansion in tier I and tier II cities </li></ul><ul><li>Top 25 cites - compelling growth stories Crisil Research </li></ul><ul><li>E-Tax exemptions- operates 29 properties but pays entertainment tax only on 10 of them </li></ul>
    33. 34. ADLABS Films <ul><li>In 2001, the company entered the burgeoning multiplex business </li></ul><ul><li>Key player - production, distribution, exhibition </li></ul><ul><li>400 screens spread across India, US, Malaysia and Mauritius. </li></ul><ul><li>Has produced like  Gangajaal,   Namastey London ,  Singh is Kinng etc. </li></ul>
    34. 35. ADLABS Films <ul><li>Integrated Play on the M & E Sector – gives competitive edge at each level of the value chain </li></ul><ul><li>Expansion through acquisitions – acquired Rave cinema & Lotus Five star </li></ul><ul><li>Future Plans - to release 6-7 movies per year </li></ul>
    35. 36. MEDIA PRINT ELECTRONIC INTERNET RADIO <ul><ul><li>THE TIMES GROUP </li></ul></ul><ul><li>THE HINDU GROUP </li></ul><ul><li>INDIAN EXPRESS GROUP </li></ul><ul><ul><li>INDIA TODAY </li></ul></ul><ul><li>BUSINESS WORLD </li></ul><ul><li>OUTLOOK </li></ul><ul><li>THE ECONOMIST </li></ul><ul><ul><li>AAJ TAK </li></ul></ul><ul><li>NDTV </li></ul><ul><li>CNBC TV 18 </li></ul><ul><li>Z NEWS </li></ul><ul><li>STAR NEWS </li></ul>NEWSPAPER MAGAZINE TV
    36. 37. Print Media <ul><li>Current size: Rs 10,900 crore </li></ul><ul><li>CAGR: 12% </li></ul><ul><li>Projected size by 2010: Rs 19,500 crore </li></ul><ul><li>With the literate population on the rise, more people in rural and urban areas are reading newspapers and magazines today </li></ul>
    37. 39. Print Media <ul><li>1 .Newspaper </li></ul><ul><li>First printed newspaper of India was in English edited & published by James Augustus Hicky on 29th January 1780. </li></ul><ul><li>Was named ‘Bengal Gazette’ which came out </li></ul><ul><li>Digdarshan was the first Hindi newspaper - April 1818 </li></ul>
    38. 41. Top key players News paper players Founded Avg. Daily Circulation (2008) IRS (2008) Times of India 1838 3.14 million 13.3 million The Hindu 1875 1.45 million 5.2 million Hindustan Times 1924 1.14 million 4.8 million
    39. 42. Electronic Media <ul><li>News Channels </li></ul><ul><li>Continues to grow at 8-10 per cent annually </li></ul><ul><li>About 10-12 per cent of total advertising money spent on television goes to news channels. </li></ul><ul><li>In 2007 news channels generate about Rs 7 billion in advertising revenues, compared to Rs 6.2 billion in 2006 </li></ul>
    40. 43. <ul><li>Aaj Tak </li></ul><ul><li>CNBC TV 18 </li></ul><ul><li>CNN </li></ul><ul><li>Headlines today </li></ul><ul><li>NDTV </li></ul><ul><li>Star NEWS </li></ul><ul><li>Zee News </li></ul>
    41. 44. NDTV <ul><li>Founded in 1988 by its current chairman and director, Prannoy Roy, an eminent journalist. </li></ul><ul><li>Has more than 1,000 employees </li></ul><ul><li>Its three national news channels NDTV 24/7, NDTV India, and NDTV Profit </li></ul>
    42. 45. ZEE NEWS <ul><li>Located in Mumbai a 24 hour Hindi news channel and is a part of Zee News Ltd (ZNL). </li></ul><ul><li>Comprise of hard news, social service programmes, crime related news, lifestyle, sports, entertainment, business and health related news as well. </li></ul>
    43. 46. CNBC TV 18 <ul><li>CNBC TV18 is a business news channel, a joint venture of CNBC and Television 18 India Limited, and is considered as India`s number one news medium. </li></ul><ul><li>Currently, CNBC TV18 is available in over 28 million households in India. </li></ul>
    44. 47. STAR NEWS <ul><li>Star News, a 24-hour Hindi news channel offers its viewers news that is relevant to contemporary India. The programming of this channel covers the full spectrum of news ranging from politics to business. </li></ul><ul><li>Launched in the year 1998, Star News was previously a bilingual channel when it was in partnership with NDTV, featuring news in both- English as well as Hindi. </li></ul>
    45. 48. AAJ TAK <ul><li>Launched on 31st December 1999 premium 24-hour Hindi news channel. </li></ul><ul><li>Reach of more than 45 million viewers in India. </li></ul><ul><li>Found a place in the Limca Book of Records, the Indian equivalent of Guinness Book of World records. </li></ul><ul><li>Recognised for the receiving the highest number of SMS-s as responses to contests, poll, etc. </li></ul>
    46. 49. Relative Shares of Hindi News Channels (2008)
    47. 50. Relative Share Of English News Channels (2008)
    48. 51. CONTD……
    49. 52. Careers for MBA’s in M & E industry <ul><li>Event Management </li></ul><ul><li>Production Management </li></ul><ul><li>Celebrity management </li></ul><ul><li>Brand Management </li></ul><ul><li>Business Development & Consulting </li></ul>
    50. 53. Event Manager: To coordinate activities of staff and convention personnel to make arrangements for group meetings and conventions
    51. 54. Marketing Manager, Media : To determine the demand for products and services offered and identify potential customers
    52. 55. Channel Sales Manager : Ensure execution of the developed sales strategies, plans and advertising or promotional programs
    53. 56. Business Development Manager : To Plan, direct, or coordinate the operations & develop strategic alliances and partnerships for Media And Entertainment companies
    54. 57. Journalist : Collect and analyze facts by interview, investigation, or observation. Report and write stories for newspaper, news magazine, radio or television
    55. 58. Brand Manager : To maintain and promote brand names through various methods
    56. 59. Production Management- To help in the production of films, serials, news and entertainment channels
    57. 60. Entertainment Industry
    58. 61. Internet Advt.
    59. 62. Media Network Industry
    60. 63. Printing & Publishing Industry
    61. 64. Primary Informations <ul><li>DNA (Newspaper): DNA (Mumbai) launched its first edition on 30th July (2005) targeted at a young readership </li></ul><ul><li>Merger of SL Media (49%) & Bhaskar Group </li></ul><ul><li>Started in Pune with 25,000 copies & currently touched 1,00,000 copies </li></ul><ul><li>No. 2 in Pune: TOI - 1.5 lacs subscription </li></ul><ul><li>DNA- 1 lac subscription </li></ul>
    62. 65. <ul><li>Challenges: Brand name of TOI </li></ul><ul><li>Attracting readers </li></ul><ul><li>Strategy: Yeraly subscription with Rs 299 </li></ul><ul><li>Initially targeted young readers now focusing family readers also </li></ul><ul><li>Future Plan: Expansion in Delhi </li></ul><ul><li>MBA opportunities: Yes & they also provide SIP </li></ul>
    63. 66. Sakaal Times <ul><li>Sakaal Media Group established in 1932 </li></ul><ul><li>Earlier known as “Maharashtra Herald” focused mainly on local news </li></ul><ul><li>7 th May, 2008 relaunched as Sakaal Times as a national newspaper </li></ul><ul><li>Challenges: TOI-Pune mirror launched at the same time </li></ul><ul><li>Strategy: 1 Year subscription at Rs. 299 </li></ul><ul><li>News for Women, Health, International & </li></ul><ul><li> Lifestyle & discontinued Health & International </li></ul>
    64. 67. Contd….. <ul><li>Impact of Economic Slowdown </li></ul><ul><li>Had to close down the newly opened office in Delhi </li></ul><ul><li>Ad income declined sharply </li></ul><ul><li>Opprtunities : Yes, they do recruite MBA & provide Internship also except editorial </li></ul><ul><li> </li></ul>
    65. 68. Conclusion <ul><li>The future depends on the growth of Indian economy </li></ul><ul><li>industry is expected to grow at an annual growth rate of 19% to reach Rs 83,740 crore by 2010 </li></ul><ul><li>The expected CAGR of various segments of M & E industry in India till the year 2010 is as follows: Radio - 32% </li></ul><ul><li>Music - 1% </li></ul><ul><li>Television - 24% </li></ul><ul><li>Film Industry - 18% </li></ul><ul><li>Print Media - 12% </li></ul>
    66. 70. Presented by <ul><li>Yugesh Kumar Dubey </li></ul>