pep 1 media
TRANSCRIPT
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Entertainment & MediaIndustry
Growth outperforms the economy
One of the fastest growing sectors of theIndian economy
Current Size : Rs 40,230 Crore
Estimated growth rate : 20 % over the next 4years
Source : PwC analysis
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The Growth Drivers
Consumerisation of urban India
Rising proportion of
young population
Increase in
income levels
Changing spending
patterns
Increase in numberof working urbans
Increase inspending power
Rising aspirationlevels
Consumption of lifestyle items
Source : Lifestyle consumption by Edelweiss Securities Pvt Ltd
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Films Television Radio Media MusicE&M Sector
Content Commercial (Hindi& Regional) Cinema
Art Movies
Cartoon Movies
Commissioned
Programs
News & Current
Affairs
Commissioned
Programs
News & Current
Affairs
Fiction/Non
Fiction Articles
Film Music
Private Albums
Delivery Cinema HallsHome Videos
(Video Cassettes,
VCDs, DVDs,)
Cable
Terrestrial
DTH
IPTV
Public
Broadcaster
FM Channels
Newspapers
Magazines
Books
Cassettes
CDs
Mobile
Phones
Internet
---------- Straight line denotes Traditional Delivery Mechanisms
- - - - Dotted line denotes Converged Delivery Mechanisms
Technology is changing the face ofMedia Industry
Source : PwC analysis
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Major constituents
Live Entertainment
2%
Internet Advertising
0.3%
OutdoorAdvertising2.5%
Print Media
30.9%
Radio
0.8%
Films
19.3%
Music
2.0%
Television41.9%
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Television
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Avenues
Production/co-production of content
Broadcasting of TV channels
Distribution of TV channels through cable and new delivery platforms like DTH andIPTV
Technology transfer for digital content creation
Marketing of TV rights/air times
Strategic investment in existing companies in broadcasting, distribution and content
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An Explosion Of ChannelChoices
0
50
100
150
200
250
300
350
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
No
ofchannels
New launches & delivery mechanisms lead to
exponential growth in number of channelsSource : TAM
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Industry size & growthpotential
12870 14800
17000
20300
25000
32700
42700
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F
INR
Crore
Source : PwC analysis
Industry projected to grow at an annual compounded
rate of 26% per annum over the next 4 years
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Growth Drivers
Subscription
Projected CAGR of 29 % over the next 5 years
Current average monthly collection : Rs 130.
Projected : Rs 250 (by 2010)
Advertising
Ad spend in India : 0.48 % of GDP ;
global average = 0.96%
Increased reach of the medium due to expanding
delivery platforms and technology advancements
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Print
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TYPES OF PRINT MEDIA
oNEWSPAPERS
o MAGAZINES
o DIRECTMAIL
o YELLOW PAGES
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Growth intitles
49145
58469
44000
46000
48000
50000
52000
54000
56000
58000
60000
2001 2003-04
Registered publications
Source : RNI
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Industry size & growthpotential
978010900
1210013500
15300
17300
19500
0
5000
10000
15000
20000
25000
2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F
INR
Crore
Source : PwC analysis
Industry projected to grow at an annual compounded
rate of 13% per annum over the next 4 years
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Growthdrivers
Booming economy resulting in increased jobcreation
More number of household with high spending
power - service sector boom
Rural / lower SECs provide vast opportunity forprint players
IT advancements will lead provide easy accessto rural areas
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Keytrends
Tapping the reading population : The readership of print media currently stands at 27 %
Growth will be driven by increase in literacy levels
7 dailies in India have readership over 1 Cr: Dainik Jagran,
Dainik Bhaskar, Eenadu, Lokmat , Amar Ujala, Hindustanand Daily Thanti
Building a pan-India presence
Publications drive growth through geographic expansion Eg: HT launch in Mumbai, Deccan Chronicle in Chennai,
Midday in Bangalore, new editions from Dainik Jagran,Bhaskar, Business Line in Mumbai
Source : NRS
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Keytrends
According to World Association ofNewspapers (WAN)
Indian newspaper sales increased 7 % in 2005(vs 0.56 % worldwide) and 33 % during 2001-
05 (vs 6 % worldwide) India is the 2nd largest newspaper market with
7.8 Cr copies daily (China 9.6 Cr)
Indian newspaper advertising revenue
increased 23.2% over 2004 (vs 5.7 % globally)
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Radio
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FMRadio
Sector opened up after years ofgovernment dominance
338 licenses given away for 91 cities in the 2ndphase of radio privatisation
20 % FDI allowed by government Eg: Virgin Radio tie up with HT Media, Mid day
& BBC for Radio One
Revenue share agreement in contrast tothe earlier fixed license fee regime
Only 20 stations were set up after auctioning of108 frequencies during round 1 of
privatisation
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Industry size & growthpotential
240300
370
550
800
1000
1200
0
200
400
600
800
1000
1200
1400
2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F
INRC
rore
Source : PwC analysis
Industry projected to grow at an annual compounded
rate of 35% per annum over the next 4 years
G h
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Growthtune
India has over 190 million radio sets reaching 99% of the population
New platforms to access radio like satellite radio, mobile phone radiosand internet radio growing fast
Revenues in 2007 - USD 0.08 bn
Expected revenues in 2010 - USD 0.26 bn, a CAGR of 32%
Ad spend on radio set to increase with more FM radios operational
R di i
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Radio goingglobal
Indian channels on international satellite radioservices like World Space
RM Radio, Jhankaar, Gandharv, NDTV etc
Numerous Indian stations reaching out to people ofIndian origin in foreign countries
RBC Radio (US), Asianet Radio (Gulf countries) 24 hour Tamil station in Singapore ( Oli 96.8 FM)
Numerous Indian stations in Trinidad, Fuji, Mauritius
Strong advertising support from local / MNC clients
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Advertising
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To create an awareness
Presentation & promotional
of ideas, goals or services
Marketing tool
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FORMS OF ADVERTISING
Television advertising
Mobile advertising
Covert advertising
Info advertising
Hoardings & pamphlets
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Prospects
The general aptitude of MBA graduates helpthem a long way in establishing a successfulcareer in media
Besides rendering administrative services theMBA graduates could shine as productionexecutives in audio visual media
The advertising wing of media too offer plentyof avenues for MBA Graduates
F ti f MBA d t i
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Functions of MBA graduates inMEDIA
Focusing on strategy implementation Acting as a change agent
Brokering opportunities for innovation andcollaboration
Ensuring communications Providing expertise and projects management
Employment
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EmploymentSurvey
Media has the highest employment opportunity 58% of additional manpower to be employed the
next 3 months
More opportunities in north India
M&E industry forms the most positive potentialemployer with net employment with outlook of58% for the second quarter of this year
Service sector has emerged as the moreoptimistic sector with media occupying about 8-
12% of the service sector
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Avenues for MBA graduates:
Magazine editor- with journalism background Advertising executive
Radio production executive
PRO
Media marketing executive Space selling Executives
Audio visual production
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Thank you