Media &

Entertainment

ROADMAP
Overview of Indian Media & Entertainment Industry
Entertainment sector
India Film Industry Multiplex
Media Sector
Career opportunities for MBAs in this industry
Primary Information

Indian Media & Entertainment

Industry
Zooming
ahead
Current Market Size is estimated at Rs. 61,000-crore
Expected to reach Rs. 1,05,200-crore by 2013, at a CAGR of 19%
Maximum growth expected in Television and Film segments
More than 300 national and regional TV channels
Close to 1000 films made every year
Liberal FDI policies across all the segments of the industry
Government focusing on regulations to give further impetus to the
industry.
Source: IMaCS Analysis, FICCI-PWC Frames 2006
Report

Major constituents
Breakup of Indian Media &
Entertainment Industry
Outdoor Advertising
2.5%
Internet Advertising
Live Entertainment
0.3%
2%
Television
41.9%

Print Media
30.9%

Radio
0.8%
Films
19.3%

Music
2.0%

Key Drivers of the Indian M&E

Industry
Regulation

Consumerism

Content

Key Drivers

Advertising spend

Pricing

Technology

Guidelines for Foreign Direct Investment in the Indian M&E Industry

1. Advertising upto 100% through the automatic route

2. Films

3. Print Media

for the full value chain like film financing,

production, distribution, exhibition and
marketing upto 100%
(a) up to 100% in publishing/printing scientific &
technical magazines, periodicals & journals
(b) up to 26% in publishing News Papers and
Periodicals dealing in News and Current Affairs
subject to a few conditions

Source: IMaCS Analysis

FDI Regulations for Indian M&E

Industry2
Guidelines for Foreign Direct Investment in the Indian M&E Industry
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

4. Broadcasting

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

Source: IMaCS Analysis

ENTERTAINMENT

TV
STAR TV
ZEE TV
SONY
PICTURES

MULTIPLEX
ADLABS
FILMS
PVR CINEMAS
INOX
LEISURE

AMUSEMENT
PARK
ESSEL
WORLD

Porters Five Forces Analysis of

Entertainment Industry

Bargaining Power of Consumer(High)

Consumer can switch channels
Increased globalization
Availability of a variety of alternative sources of

entertainment

Threat of New Entrants(Low)

High sunk costs
High capital requirement
Difficult access to distribution
Steeper learning curve because of mature market

Competitiveness within the

Industry(High)
Highly Fragmented Industry
High Fixed Cost
Highly perishable products
Highly diversified rivals

Bargaining Power of Suppliers(Low)

Decreasing bargaining power of suppliers
Increasing number of content providers

Threat of Substitutes
Film Industry
Significant sporting events like World Cups
Significant cultural events
Print media
Internet

Genrewise Television Viewership Share in India

3%
2% 4%

8%

1%

Mass Entertainment

39%

Hindi Film Channels

Kids Channels
Regional Channels

5%

English Entertainment
Music Channels
News Channels
Sports Channels

38%
Source: TAM Media Research

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

Zee Televisions
Launched in the October 1992 & keeps tab with 167

countries
Reach to about 500 million viewers globally including
USA, Canada , Europe, Africa, the Middle East, South
East Asia, Australia and New Zealand
Key driver of the growth of cable and satellite industry in
India for the last 16 years
Largest producer and aggregator of Hindi programming
in the world, with more than 80,000 hours of original
programming in the library
Ranked as the ninth most popular brand within a decade
of its launch.

SWOT analysis of Zee

Entertainment

Strengths

Weaknesses

High viewership ratings

Complete bouquet of
channels
High subscription revenues

Lagging behind Star Plus

Problem of attrition
Increase in operating costs

Opportunities

Threats

Benefit from the robust growth of

the Entertainment and Media
sector
Digitization

Slowdown in India's economic

growth
Increased competition
Declining viewership and revenue
share of GEC channels

Financial Performance
Ad Sales Up 25%; Net Profit Up 21% in Q2 FY10
Consolidated
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%

Rs. Million

Star TV
Launched in 1991
Leading the Indian television industry for 5 years
Expected to continue growing rapidly and reach INR 371

billion by 2010
Extended business to filmed entertainment, television
production, cable systems and wireless and digital
services in Asia in partnership with other companies
Employees at STAR is approximately 1,800 in Hong
Kong, India, Taiwan, Mainland China, Dubai, Singapore,
Korea, the Philippines, Pakistan, Thailand, Japan and
London

OPPORTUNITIES
STAR has expanded by launching several regional

channels
Prime source of growth, as much of the untapped
potential is in the rural markets

Sony Pictures
Subsidiary of Sony Corporation of America
Provides entertainment to about 130 countries
Specializes in Movies, Television, Home Entertainment

and Games
Available on the World Wide Web

SWOT analysis of Zee

Entertainment

Strengths

Weaknesses

High viewership ratings

Complete bouquet of
channels
High subscription revenues

Lagging behind Star Plus

Problem of attrition
Increase in operating costs

Opportunities

Threats

Benefit from the robust growth of

the Entertainment and Media
sector
Digitization

Slowdown in India's economic

growth
Increased competition
Declining viewership and revenue
share of GEC channels

Rating Points & Market Share

Indian Film Industry

Raja Harishchandra (1913), by Dadasaheb Phalke, was

the first film made in India.

Largest in the world in terms of number of films

produced per year.

FICCI-KPMG study values US$ 2.11 billion and projects

growth at 9.1 per cent till 2013.

Contd
90 years old, accorded the status of industry only in

2000.
Has 11500 existing screens, 95% are standalone, single

screens.
China - 65,000 screens & US - 36,000.

Growth Drivers
Increasing investment in film production
Reducing shelf life of movies making multiplex the ideal

format for distributors

Encouraging regulatory environment
People willing to pay for quality

Risk & Concerns

Slowdown in content supply
Alternative entertainment avenues
Mall development delays
Uncertainty over entertainment tax
Great success of IPL

Breakup of Indian films

market
1%

8%

15%
45%

17%
10%

Source: IMaCS Analysis, Industry estimates

2% 2%

Hindi

Crossover Hindi

Tamil

Telugu

Foreign

Malayalam

BengalI

Others

 PVR Cinemas
INOX Leisure
ADLABS Films
FAME India

Key
Players
in
Multiplex

CINEMAX

PVR Cinemas
JV between Priya Exhibitors Private Limited and Village

Roadshow Limited
began its commercial operations in June 1997
As of 2009, PVR has a total of 106 screens in 26 multiplexes

across India
India's largest multiplex, PVR Bangalore, which has 11

screens.

PVR
Aggressive expansion plans-100 screen in coming two

years
Leading Multiplex operator- 18 million patrons in FY08,

highest numbers among all the multiplex players

Entertainment tax burden to decline

INOX Leisure
Diversification venture of the INOX group into

entertainment and is a subsidiary of Gujarat

Flourochemicals Ltd.
first multiplex in Pune in 2002
operates 29 multiplexes and 105 screens in 20 cities

INOX Leisure
Expansion in tier I and tier II cities
Top 25 cites - compelling growth stories Crisil Research
E-Tax exemptions- operates 29 properties but pays

entertainment tax only on 10 of them

ADLABS Films
In 2001, the company entered the burgeoning multiplex

business
Key player - production, distribution, exhibition
400 screens spread across India, US, Malaysia and

Mauritius.
Has produced like Gangajaal, Namastey London, Singh

is Kinng etc.

ADLABS Films
Integrated Play on the M & E Sector gives competitive

edge at each level of the value chain

Expansion through acquisitions acquired Rave cinema

& Lotus Five star

Future Plans - to release 6-7 movies per year

MEDI
A
PRIN
T
NEWSPAPE
R
THE TIMES
GROUP

ELECTRO
NIC
MAGAZIN
E
INDIA
TODAY

TV
AAJ
TAK

THE HINDU
GROUP

BUSINESS
WORLD

NDTV

INDIAN
EXPRESS GROUP

OUTLOOK

Z NEWS

THE ECONOMIST

STAR NEWS

CNBC TV 18

RADI
O

INTERN
ET

Print Media
Current size: Rs 10,900 crore
CAGR: 12%
Projected size by 2010: Rs 19,500 crore

With the literate population on the rise, more people in

rural and urban areas are reading newspapers and
magazines today

Print Media

1.Newspaper
First printed newspaper of India was in English edited &

published by James Augustus Hicky on 29th January 1780.

Was named Bengal Gazette which came out
Digdarshan was the first Hindi newspaper - April 1818

Top key players

News
paper
players

Avg. Daily
Founded Circulation IRS (2008)
(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

Electronic Media
News Channels
Continues to grow at 8-10 per cent annually
About 10-12 per cent of total advertising money spent on

television goes to news channels.

In 2007 news channels generate about Rs 7 billion in

advertising revenues, compared to Rs 6.2 billion in 2006

Aaj Tak
CNBC TV 18
CNN
Headlines today
NDTV
Star NEWS
Zee News

NDTV
Founded in 1988 by its current chairman and director,

Prannoy Roy, an eminent journalist.

Has more than 1,000 employees
Its three national news channels NDTV 24/7, NDTV

India, and NDTV Profit

ZEE NEWS
Located in Mumbai a 24 hour Hindi news channel and is

a part of Zee News Ltd (ZNL).

Comprise of hard news, social service programmes, crime

related news, lifestyle, sports, entertainment, business

and health related news as well.

CNBC TV 18
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.
Currently, CNBC TV18 is available in over 28 million

households in India.

STAR NEWS
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.
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.

AAJ TAK
Launched on 31st December 1999 premium 24-hour

Hindi news channel.

Reach of more than 45 million viewers in India.
Found a place in the Limca Book of Records, the Indian
equivalent of Guinness Book of World records.
Recognised for the receiving the highest number of SMSs as responses to contests, poll, etc.

Relative Shares of Hindi News

Channels (2008)

Relative Share Of English News

Channels (2008)

CONTD

Careers for MBAs in M & E

industry
Event Management
Production Management
Celebrity management
Brand Management
Business Development & Consulting

Event Manager: To coordinate activities

of staff and convention personnel to make
arrangements for group meetings and conventions

Marketing Manager, Media:

To determine the demand for products and services offered
and identify potential customers

Channel Sales Manager:

Ensure execution of the developed sales strategies, plans and
advertising or promotional programs

Business Development Manager:

To Plan, direct, or coordinate the operations & develop
strategic alliances and partnerships for Media And
Entertainment companies

Journalist:
Collect and analyze facts by interview, investigation, or
observation. Report and write stories for newspaper, news
magazine, radio or television

Brand Manager:
To maintain and promote brand names through various
methods

Production ManagementTo help in the production of films, serials, news and

entertainment channels

Entertainment Industry

Internet Advt.

Media Network Industry

Printing & Publishing Industry

Primary Informations
DNA (Newspaper): DNA (Mumbai) launched its first

edition on 30th July (2005) targeted at a young

readership
Merger of SL Media (49%) & Bhaskar Group
Started in Pune with 25,000 copies & currently touched
1,00,000 copies
No. 2 in Pune: TOI - 1.5 lacs subscription
DNA- 1 lac subscription

 Challenges: Brand name of TOI

Attracting readers
Strategy: Yeraly subscription with Rs 299
Initially targeted young readers now
focusing family readers also
Future Plan: Expansion in Delhi
MBA opportunities: Yes & they also provide SIP

Sakaal Times
Sakaal Media Group established in 1932
Earlier known as Maharashtra Herald focused mainly

on local news
7th May, 2008 relaunched as Sakaal Times as a national
newspaper
Challenges: TOI-Pune mirror launched at the same time
Strategy: 1 Year subscription at Rs. 299
News for Women, Health, International &
Lifestyle & discontinued Health & International

Contd..
Impact of Economic Slowdown
Had to close down the newly opened office in Delhi
Ad income declined sharply
Opprtunities: Yes, they do recruite MBA & provide

Internship also except editorial

Conclusion
The future depends on the growth of Indian economy
industry is expected to grow at an annual growth rate of

19% to reach Rs 83,740 crore by 2010

The expected CAGR of various segments of M & E
industry in India till the year 2010 is as follows:
Radio - 32%
Music - 1%
Television - 24%
Film Industry - 18%
Print Media - 12%

Presented by
Yugesh Kumar Dubey