In this editionIndustry news:

Television ......................... 2

Filmed entertainment ....... 3

Radio ............................... 3

Marketing services ............ 3

Sports .............................. 3

New Media ....................... 4

Others ............................. 4

People movement ............. 4

In-focus:

Media city ........................ 5

Point of view:

Interview with Mr. Biren Ghose — President, ABAI and Country Head, Technicolor India ..... 8

Our M&E

publications ................. 11

The NewsreelJuly 2014

A newsletter for the media and entertainment sector

Its time for media cities in India

Welcome to the July 2014 edition of The Newsreel, EY’s newsletter on the media and entertainment (M&E) industry.

India’s M&E industry saw increased activity in the TV distribution space with new regulations imposed by TRAI. The authority has recommended reduction of license fees and has put in place cross-media restrictions for DTH operators. The regulator has also restricted broadcasters from providing TV services directly to commercial subscribers.

In the Filmed Entertainment space, INOX has acquired Satyam Cineplexes and the Anil Ambani Group is planning to sell its theatre chain Big Cinemas. Furthermore, PVR plans to invest INR2.5 billion to add 100 new screens in FY15.

The New Media segment also witnessed increased activities with players such as Hungama Digital and Saavn raising funds to expand their operations. In addition, Hathway and Eros have tied up to launch a new online movie streaming service and Tribune Digital Ventures has acquired What’s On India.

In this month’s In-Focus section, we look at the relatively new trend of media cities and how they help the industry.

In the “Point of view” section, Biren Ghose, President, ABAI, and Country Head, Technicolor India, shares his insights on the concept of a media city and the upcoming media city in Bangalore.

I hope you enjoy reading this edition of The Newsreel. We look forward to your valuable feedback and suggestions to enable us to make this newsletter even more interesting and useful for you.

With kind regards,

Farokh T. BalsaraNational Sector Leader — Media & EntertainmentEY, India

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Industrynews

Television

Star India to launch geo-targeted advertising

Star India is in the process of launching a new technology that allows advertisers to segment audiences into regions through geo-targeted advertising. Star Adsharp, the technology, has been on a pilot run for quite some time with Cisco as the technology vendor. The launch of Star Adsharp will allow small budget advertisers to advertise on the Star network. Initially, this will be allowed on two of its channels, Star Plus and Star Gold.1

Reliance-RTL JV splits; Big RTL Thrill to rebrand

Reliance Broadcast Network Ltd. (RBNL) and European firm RTL have ended their three-year-old JV, which operated Big RTL Thrill in India. RBNL bought out RTL’s stake in their equally owned JV in May 2014. Now the channel will be rebranded as Big Thrill and will air local male-oriented action content. Earlier this year, RBNL also split from CBS. Exiting from international JVs,

RBNL is now focusing on its two regional channels, Big Magic and Big Magic —Bihar and Jharkhand.2

TV18 launches India’s first Gujarati business news channel CNBC Bajar

TV18 has launched India’s first Gujarati business news channel, CNBC Bajar. The channel will offer a mix of live market coverage and feature shows on personal finance, entrepreneurship, property and lifestyle. It will focus on micro-markets in Gujarat as well as on global markets.3

Atlas Consolidated in US$200 million JV with former IMCL CEO Nagesh Chhabria

Atlas Consolidated has signed an agreement with Chhabria’s Bhima Riddhi Digital Services (BRDS) to create a nationwide Multi-System Operator (MSO). The new MSO is planning a pan-India network with a base of six million subscribers in the next 18 months. Its organic expansion will involve rollout of a fibre network and conversion of a large analogue cable TV base into a digitised setup.4

Broadcasters not to provide TV services directly to commercial subscribers: TRAI

According to TRAI’s mandate, commercial subscribers cannot be provided TV services directly from broadcasters. They will only have access to TV offerings from distribution platforms such as cable TV, direct-to-home (DTH), headend-in-the sky (HITS) or internet protocol television (IPTV). TRAI has also laid down its guidelines on definition and sub-categorisation of commercial subscribers, tariffs for commercial subscribers and the manner in which TV channels are offered to commercial subscribers.5

TRAI imposes cross-media restrictions in DTH licensing regime

TRAI has mandated a new DTH licensing regime under which it has imposed restrictions on vertically and horizontally integrated entities. It has also recommended reduction of licence fees from 10% of gross revenue to 8% of adjusted gross revenue. To overcome any ambiguity in interpretation of its guidelines in new regime, TRAI has also defined the scope of terms such as definition of control, licence period, entry fees, licence fees, migration scheme and fees, and interoperability of DTH STBs.6

1 “Star India to change market dynamics with launch of geo-targeted advertising,” Indiantelevision, 4 July 2014, via Factiva.2 “Reliance-RTL JV splits, Big RTL Thrill to rebrand,” TelevisionPost, 15 July 2014, via Factiva.3 “TV18 launches India’s first Gujarati business channel CNBC Bajar,” Televisionpost, 28 July 2014, via Factiva.4 “Atlas Consolidated in US$200 million JV with former IMCL CEO Nagesh Chhabria,” Televisionpost, 17 July 2014, via Factiva.5 “Broadcasters can’t provide TV service directly to commercial subscribers, “TRAI”,” TelevisionPost, 17 July 2014, via Factiva.

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Filmed entertainment

Radio

Marketing services

Sports

Reliance Media Works and PFL merge global film service business

Reliance Media Works has merged with Prime Focus World. The promoters of Prime Focus and Reliance Media Works will each infuse fresh equity capital of INR1.2 billion into the former through a preferential allotment, aggregating INR2.4 billion. The merged entity will be the world’s largest integrated media service group with more than 5500 employees across 20 locations.7

PVR to invest INR2.50 billion on 100 new screens in FY15

PVR Ltd. has announced an investment of INR2.5 billion to add 100 new screens across the country, with a special focus on South India. It currently has 444 screens in 101 properties in 43 cities and aims to touch 1,000 screens through organic growth by 2017–18. The company will also set up four superplexes, each of which will have a minimum of 12 screens and multiple formats under one roof.8

INOX to acquire Satyam Cineplexes for INR1.82 billion

INOX is planning to acquire Satyam Cineplexes for INR1.82 billion. This will be the company’s third acquisition in less than a decade, in addition to its acquisition of Calcutta Cine Pvt. Ltd. in 2007 and Fame India Ltd. in 2010. It will now have presence in 50 cities in the country, with 91 multiplexes and 358 screens. INOX’s current acquisition will add 38 screens, each valued at INR47.9 million.9

ADAG puts BIG Cinemas on the block

Reliance Media Works (RMW), which owns BIG Cinemas, is in advanced talks with PVR, INOX Leisure and an undisclosed private equity (PE) player, to sell its theatre chain. The Anil Ambani Group is the third-largest player in the cinema screen business with 280 movie screens across India. If the deal fructifies for INOX, it will become the largest player and overtake PVR. On the other hand, if PVR closes the deal, PVR will be far ahead of the rest of its competitors.10

Prakash Javadekar restricts private FM radio stations to AIR news

The Minister for Information and Broadcasting, Prakash Javadekar, has ruled out any immediate permission to be given for private news to be aired by FM radio stations, contrary to his earlier promises of looking into the matter “positively.” According to Javadekar, private FM radio companies will be allowed to broadcast news only from the bulletins of All India Radio (AIR).11

Dentsu Aegis acquires majority stake in Milestone Brandcom

Dentsu Aegis Network has acquired between 51% and 76% stake in Milestone Brandcom to strengthen its position in the out-of-home (OOH) space. Through Milestone, Dentsu will get OOH presence in 42 cities and portfolio of clients such as Colors and Tata Docomo.12

ICC floats media rights tender, value expected to almost double for next cycle

International Cricket Council (ICC) has launched the tender process for sale of media rights for the 2015–2023 cycle, including the two ODI and the two Twenty20 World Cups. The contest will be mainly between Star India, Multi Screen Media (MSM) and possibly Reliance Industries controlled-TV18. Media rights value could double from the current US$1.1 billion, due to cable TV digitisation. The prospect of owning the ICC media rights is highly attractive from an Indian sports broadcaster’s perspective since five out of the six events will suit the Indian time zone.13

7 “Reliance Media Works & PFL merge global film services business,” Indiantelevision, 2 July 2014, via Factiva.8 “PVR to invest INR2.50 billion on 100 new screens this fiscal, TRAI,” livemint, 20 July 2014, via Factiva.9 “INOX to acquire Satyam Cineplexes for INR1.82 billion,” Televisionpost, 31 July 2014, via Factiva.10 “ADAG puts BIG Cinemas on the block,” Business Standard, 9 July 2014, via Factiva.11 “Prakash Javadekar restricts private FM radio stations to AIR news,” livemint, 17 July 2014, via Factiva.12 “Dentsu Aegis acquires majority stake in Milestone Brandcom,” Televisionpost, 28 July 2014, via Factiva.13 “ICC floats media rights tender, value expected to almost double for next cycle,” Televisionpost, 7 July 2014, via Factiva.

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Hathway ties up with Eros to launch online movie streaming service

Hathway Cable and Datacom has launched a subscription-based movie streaming service called Broadband Movies. Content for this service is sourced from Eros Now’s exclusive library. The service will enable Hathway’s broadband subscribers across the country to access movies on multiple devices such as smart-TVs, PCs, laptops, tablets and mobiles.14

Hungama Digital raises US$40 million from Bessemer Venture Partners

American VC firm Bessemer Venture Partners will invest US$40 million (around INR2.30 billion) in Mumbai-based mobile and digital entertainment company Hungama Digital Media Entertainment for technological advancement at its next phase of growth, e.g., in acquiring smart cloud technology and introducing more games, upgrading its mobile apps and integrating its entertainment services.15

Tribune Digital Ventures to buy out What’s On India

Tribune Digital Ventures has announced its acquisition of What’s On India for US$27 million (INR1.61 billion). The transaction will enable Tribune Digital Ventures, to diversify its revenue stream and strengthen its foothold in India. The deal will also allow the existing investors of What’s On India—

Government mulls separate ISP licence for cable TV to push broadband

The Department of Telecom (DoT) plans to leverage Cable TV’s extensive last mile connectivity to increase broadband penetration by creating a new category of internet service provider (ISP) licences for cable TV in its new broadband policy. Cable TV has a greater reach than wireline telephone connections. The policy will also explore ways to attract investments from potential developers of fibre-to-the-home (FTTH) networks.18

• RC Venkateish, Dish TV’s CEO, has replaced Tata Sky’s MD and CEO Harit Nagpal as the new President of DTH Association.19

• Sunil Lulla has resigned from his position of President, Corporate Development, at Bennett, Coleman and Company (BCCL). In his most recent role, he was responsible for developing strategy and growth in the company’s music, events, digital and internet businesses.20

• Raghav Bahl, founder and promoter Network18, has resigned from all his executive positions and will continue as its Non-Executive Director.21

• Raj Television has appointed S Jeyaseelan its CFO.22

• Sameer Nair, former CEO of Star India, has joined Balaji Telefilms as its Group CEO. The company has not had a Group CEO since Punit Kinra’s exit in June 2012.23

New Media

Others

People movementNexus Venture Partners, INTEL Capital and Venture Capital Fund of Sequoia Capital to exit from the venture. What’s On enables customers to search for TV content and guides them across 16 countries including India, the UAE, Jordan Egypt, Indonesia and Qatar.16

Music streaming service Saavn close to raising up to INR2.40 billion

Saavn is planning to raise up to INR2.40 billion in a deal led by Hong Kong-based hedge fund Steadview Capital. The digital music market is expected to grow to US$9 billion worldwide in 2014, driven by the expansion of international and regional music brands as well as the growth of smartphones in South East Asia, India and Africa, all topping a of 20%, according to research conducted by Mahindra Comviva and Ovum Consulting.17

14 “Hathway ties up with Eros to launch online movie streaming service,” Indiantelevision, 2 July 2014, via Factiva.15 “Hungama Digital raises US$40 million from Bessemer Venture Partners,” TelevisionPost, 7 July 2014, via Factiva.16 “Tribune Digital Ventures to buy out What’s On India,” livemint, 9 July 2014, via Factiva.17 “Music streaming service Saavn close to raising up to INR2.40 billion,” Economic Times, 30 July 2014, via Factiva.18 “Govt. mulls separate ISP licence for cable TV to push broadband,” Televisionpost, 5 July 2014, via Factiva.19 “RC Venkateish is new president of DTH Association,” Televisionpost, 1 July 2014, via Factiva.20 “Sunil Lulla quits BCCL,” Televisionpost, 3o June 2014, via Factiva.21 “Raghav Bahl to continue as non-executive director at Network18 group,” Indiantelevision, 7 July 2014, via Factiva.22 “Raj Television appoints S Jeyaseelan as CFO,” Indiantelevision, 10 July 2014, via Factiva.23 “Sameer Nair joins Balaji Telefilms as Group CEO,” Televisionpost, 15 July 2014, via Factiva.

Govt. Policy & regulation

Medical services

Teleport services

Post production companies

Production houses

Parking lots

Training institutes

Animation & VFX companies

Real estate developers

Public parks

Office space*

Set designers/Art directors

Equipment providers

Business CentreOnline hosting

solutions

Media specialist architectureTheatre companies

Hotels & hospitality

ICT service providers

TV BroadcastersGaming companies

Residential apartments

Customer analytics

Ad production houses

RetailData

centresTalent

Mgmt, etc.

Transfer room

Animation studio

Sound recording

Editing suitesSpirit

Gaming workshop

Preview theatre

Lustre Sound stage

Incubation suitesGraphics workshop

Backlot/outdoors

Equipment room

* Office space for broadcasters, news rooms, marketing & distribution firms, aggregators, etc.

Investment & Financing environment

Talent development & training

Ancillary services

Support Media Service

Core Media Serice

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A media city is a cluster of media companies providing services ranging from production to distribution of content. Apart from the presence of companies in them, successful media cities evolve into “media free thinking zones” that enable free flow of thoughts, ideas and capital –creative and financial – into content creation for media and entertainment. Successful media cities are ecosystems that attract talent, businesses and capital.

A media city hosts clients across media segments, e.g., broadcasters, movie-production houses, radio, print, animation, gaming, digital, etc. The key aspect that must be considered before setting up a media city is that for some of these segments, support facilities (or “behind the camera” facilities) are adequate, but for others, “in front” and “behind” the camera services are imperative.

In focus:media city

From space to an ecosystem

A typical media city ecosystem comprises the components mentioned below:

Dubai Media City

• Tax free zone• Incentives to anchor tenants

• Tax incentives

Key Success Factors Key Advantages

• Saving on capex

• Time saving & investment

• Efficiency

• Industry leader as anchor tenants - BBC & ITV• Capital expenditure savings• Digital infrastructure support by local Govt.

• Anchor tenants: MediaCorp. & Infinite studios• An incubator set up by Govt.• Single & fast window of approval

• Geographical location• Advanced IT infrastructure

UK Media City

Mediapolis - Singapore

Seoul Digital Media City

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Benefits

Most media cities are promoted by the Government to generate additional employment opportunities in the media sector and develop the economy and the media industry. Development takes place either by bringing domestic work into a media city or by sourcing work from high-cost foreign countries into it.

The Government usually attracts companies to a media city by offering incentives in the form of free zone benefits such as 100% ownership of business, tax holidays, export benefits, etc. However, these are types of incentives provided to players to attract them to become part of a media city. Beyond tax benefits, a media city also offers other incentives such as R&D benefits, infrastructural facilities for a plug-and-play type of model, favourably priced land for tenants, etc. Some governments have provided exemption from personal and corporate tax for as long as 50 years. Others have set up one-stop shop facilities for a variety of services including immigration, traffic and postal services. Rules on foreign ownership and repatriation of profits have also been relaxed in some places. Additionally, funds have been set up by some media cities to support financing of projects.

Success factors

An analysis of media cities set up across the world indicates that several factors have contributed to their success:

Challenges

The key challenges facing the media industry include availability of talent, real estate costs, utility costs, capex on infrastructure, etc. Media cities can address these challenges by setting up ecosystems to enable development of employees, provision of real estate space and utilities at discounted prices and technological infrastructure as a pay-per-use model. Media cities also need to ensure that hygiene-related issues in parks, retails outlets, medical services, hospitality services, etc., are addressed.

The India perspective

In India, various state governments have given incentives to the media industry under their various policies. However, these primarily pertain to allocation of space and land at favourable rates, which in actuality, can be only taken up by large players in a very small industry!

However, barring some big companies, including broadcasters, most of the others are small players in value terms, but large in numbers, due to which they are not able to benefit from these policies. Therefore, there needs to be an additional driving factor for these companies to move to

media cities. A way to attract them would be by reducing their capex, since most of these companies are highly capital-intensive. Therefore, there is a need for cloud-based infrastructural services, which offer a pay-per-use model to store and access data, and enable mobility by allowing access to content around the world through a distributed workforce, by the seamless integration of the legacy ERP/SCM systems of media companies with cloud, DAM systems and render farms. In addition, rent options, as compared to buy options, need to be be provided and space offered on a modular basis.

Core services need to be supported by support media services including teleport services, hosting solutions, customer analytics, etc. Therefore, this should open up an additional opportunity for companies offering support services to establish their presence in media cities.

The Karnataka Government has launched its AVGC policy and the Andhra Pradesh Government its GAME policy, which indicates their increased awareness of the benefits that can be availed through implementation of such policies.

10 - 15 acres of land for AVGC Centre of excellence

Exemption from entry tax

Investment promotion subsidies

incentives for export oriented enterprises

interest free loans

Concessional registration charges

Anchor unit subsidies

Financial assistance for art schools

Adequate extent of land earmarked for AVGC sector

Exemption from stamp duties

Capital expenditure

grant

Operational Support

Tax concessions

Land

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The ultimate success of any media city depends on its ability to attract some large anchor clients and talent; provide for commercial, residential and recreation spaces, and be flexible enough to be attractive to both large and small-sized companies.

Incentives under the AVGC Policy

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Point of viewBiren Ghose, President, ABAI and Country Head, Technicolor India

Bangalore has traditionally been India’s epicenter for science and technology. It is our idea is to

extend the city’s technological DNA to the growth of the media and entertainment sector. Therefore, the launch of a digital media city in Bangalore will leverage this geographical “gene pool” with offerings that augur well for creative and technical professionals who want to benefit from shared collaboration and innovation in the country’s No.1 start-up environment.

What is the purpose of setting up a media city in Bangalore?

What are the benefits you are looking at providing occupants of a media city?

Q.

Q.

A.

A.

The rationale for “building” a digital media capability stems from an analysis of market forces, which predicts a strong shift toward new media production and distribution methods which is in turn driven by new modes of content consumption and consumerisation.

“Hotspots” are becoming physical “hubs” as content creators embrace the new paradigm of “converged systems” and fast-breaking innovations in IT infrastructure. The projected proliferation of new tools and technologies in coming years is expected to consume the enhanced capability of new style IT infrastructure. Most importantly, these facilities can now be established in a centralized “zone” and leveraged by large and small productions on a syndicated basis, making the zone a coveted destination for production of content in facilities hitherto only available to the biggest players or in overseas locations. In such a non-hierarchical production environment, one expects to see many small and medium “independents” finding themselves in an advantageous position to make high-quality products that until now was the privilege of only the big “studios.” Currently such hubs are being launched and developed in countries including Korea, Singapore, Dubai, the UK, China, Malaysia, etc.

We are looking at a suite of infrastructure facilities and shared service benefits, which are

currently in the process of being ideated and proposed. The local government advises us that there is also a possibility of it providing concessions and tax benefits. However, all this is currently at the ideation stage, and the government and industry have jointly decided to commission a study to evaluate the ideal “package” – a mix of infrastructure, facilities, locations, enabling input, regulatory advantages, etc., that will attract major players from international and domestic markets. We are looking into the benefits occupants of a media city would want. Taking a cue from the positive shift in technology-related jobs and companies that are moving to Bangalore, and the increasing prominence of digital media and the digitization needs of entertainment platforms, we expect more media companies move to such digital media cities. We feel Bangalore will remain the hub in this domain. We will leverage technological advances such as Cloud, Big Data and Mobility in a compelling package to create an ecosystem that makes Bangalore the No.1 hotspot for digital new media.

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What is the kind of infrastructure you plan to provide in the media city?

What are the areas this media city will look at that are revolutionary and reflect emerging trends?

Q.

Q.

A.

A.

We are not only thinking in terms of a “physical” city. The proposed city could start on only a few

square acres and then expand into a whole mini-township. With Cloud and other virtual platforms, the ground space is only an access port of call! Moreover, while we will have buildings, labs, production suites, data centers, etc., I cannot adequately stress the importance of the “happiness quotient” for a creative artist — the ambience in which he or she lives and works is a key prerequisite for media hubs that have emerged, even in the pre-digital age. Here artists and technicians prefer to work and live their lifestyles. Soho in London, Hollywood and Burbank in LA are examples of places to which creative professionals have gravitated as great places to work in. In Animation & VFX in Whitefield, Bangalore is a good example of an emerging creative cluster for digital production with brands including DreamWorks, Moving Picture Company (MPC), Rockstar Games and Technicolor, which have implemented successful and scaling initiatives. This illustrates how creative people go where they can be happy, despite the fact that some of these locations are not necessarily the most economical or glamorous. Therefore ultimately, it is not just about the physical location on a building or even a mini city is constructed, it is about imparting it a new flavour, and offering a unique and tailored product. it is about providing the most contemporary and efficient technology for digital story-telling and content creation in a “platform play” —one that will be in sync with new styles of content management and distribution.

Today we see many innovations that are gradually transforming the media landscape, making

content digitally malleable, scaling new heights of entertainment through the spread of stereo 3D, resolutions scaling 4K, a plethora of new devices including Interactive TV, next gen game consoles and hyper-smart phones, set-top boxes that enable personalisation and searches across increasingly deep libraries — all in real-time and connected social media environment.

Gone are the days when a production process was completely handled in-house. The conventional studio banner would

manage each stage of production within proprietary facilities. Today, with increasing digital tools for collaborative multi-local production, production pipelines are able to integrate different innovations and create content with bespoke specialist production partners. This obviates the need for internal capability. These specialists including, VFX, color grading/post- production services, replication, localization and many other production services can all be a part of a digital media city.

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What are the timelines for this project?Q.The project is at its early stage and will go through the following three phases:

In Phase I, a study involving local and international players will be conducted to create a framework on the basis of which the media city will be developed.

In Phase II, a global bid is being proposed to attract partners who will promote and execute the project, as envisaged in the study/feasibility report.

The third and final phase will be the launch when the promoters of the media city (selected through the global bid) will solicit clients across producers, distributors and other players.

We are in the process of commissioning a study in coordination with technical and industry experts and the Karnataka Government. ABAI will invite other trade associations and industry experts [local and international] and technology companies to shape and propose the final project. This will lead to identification of a private partner to join hands with the Government in this endeavour.

The study should be in full sail by around next month and the contours of the city vis-à-vis its specifications and phases should be finalised, if feasible, by around 4Q 2014. This is breaking news as we speak!

A.

What is the security you will provide to the occupants of the media city?Q.

A. Security is a huge point of consideration and the concerns of Western majors are heightened

in an Asian environment. With the boom in digitization and technology, it is very important to have the highest level of data security to protect the interests of all the parties engaged in the process of media creation, storage and dissemination. Organizations such as the MPAA need to approve and audit the new city and its constituents to ensure that it complies with procedures that will protect the world’s major studios.

In the proposed media city project, we will involve and consult the major studios and their audit teams as well as the MPAA and other certification institutions such as the CDSA and other entities to put in place security protocols and processes that ensure data integrity at all levels of the “city.”

The views expressed in this article are that of Biren Ghose, in his capacity as a industry spokesperson and association head. They are not the views of Technicolor India

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Future of television – Media & Entertainment:

We have identified six major trends that tell the story about the future of television and what it means for M&E companies. These trends stem

from thousands of hours of dialogue with media executives and thought leaders, combined with many more hours of work helping our clients think through strategies for these pressing issues.

Media & Entertainment Capital Confidence Barometer: Confidence grows:

The study highlights the results of a survey of M&E executives on their views of

the global economy, the capital markets and the transaction environment.

Sustaining digital leadership!:

This report is the second in our Digital Leadership Study Series and offers insights on digital growth strategies, business models

and methods of customer engagement that companies are executing to pursue and sustain M&E industry leadership in the digital era.

Our M&E publications

For more information, please contact Radhika Pradhan at radhika.pradhan@in.ey.com or + 91 022 6192 1516.

Film industry in India: New Horizons

This report was released in association with the LA India Film Council. The report highlights how the Indian film industry will

benefit by partnering with Hollywood.

Poised for growth: FM radio in India

This publication was released in association with the CII and provides an analysis of the FM radio industry in India.

Monetizing your content in a digital world

This publication offers perspective on the changing nature of media and entertainment consumption and how M&E

companies are tailoring their offerings to suit the same.

CFO Study: It’s showtime! Digital drives the agenda, data delivers the insights:

For the first time since the great recession of 2008, media and entertainment (M&E) chief financial officers

(CFOs) have shifted their primary focus from cost reduction and operational efficiencies to optimizing the organization for growth.

The business of experiences: The Indian events and activation industry

This report was released in association with EEMA at Eemagine 2012. The first

report on the events and activation industry, this report captures the emerging trends and challenges that this nascent sector faces.

Digital agility now!This report describes how digital leaders are showing the M&E path forward by using new technology not only to deliver new media products and services, but to build more agile organizations capable of sensing and responding far

faster to technology-induced shifting customer attitudes and marketplace opportunities and risks. The report also describes how “Other respondents” have been slower to change.

Industry is the cornerstone of EY’s approach to professional services. M&E is one such significant focus area. The firm’s M&E practice has more than 2,000 professionals across more than 100 countries, who focus on various issues and challenges the industry faces. Globally, EY leads the audit market share in the overall M&E industry on the 2008 Fortune 100 list. The firm is also the leader among the Big Four in the overall M&E space on the 2007 Russell 3000® Index.

Whether it is the traditional press and broadcast media or the multitude of new media options, audiences now have more choice than ever before. For M&E companies, integration and adaptability are becoming critical success factors.

EY’s Global Media & Entertainment Center brings together a global team of professionals with in-depth technical experience in assurance, tax, transaction and advisory services to help you achieve your potential.

For further information on EY’s services for the media and entertainment industry, please contact:

The center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues. Ultimately, it enables us to help you meet your goals and compete more effectively. This is how we make a difference.

EY India has a dedicated M&E practice of more than 160 professionals across 15 key segments of the industry. We provide services to many of the country’s leading M&E companies as well as to global media giants operating in the country. We have developed a wide range of services, such as entry strategy, private equity placement, due diligence, IT security review, organization structure, performance improvement and tax structuring, to name a few. This has enabled us to establish a strong presence in each segment of the industry.

As your advisors, we can help you respond quickly and effectively to the challenges the entertainment industry faces today.

Farokh T. Balsara Partner and Sector Leader — Media & Entertainment

Ernst & Young LLP The Ruby, 29 Senapati Bapat Marg, Dadar (W) Mumbai — 400028

Tel: + 91 022 61920000 Fax: + 91 022 61921000

Email: farokh.balsara@in.ey.com

Ajay Shah : TV Broadcasting

Devendra Parulekar : TV distribution

Rakesh Jariwala : Filmed entertainment; Sports

Ashish Pherwani : Print; Radio; Out-of-home; Events; Marketing agencies

Raghav Anand : New Media

12 | The Newsreel

Our M&E practice

Ernst & Young LLPEY | Assurance | Tax | Transactions | AdvisoryAbout EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

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EYIN1402-XXX ED None

This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

MS

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