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23937150 Media and Entertainment Industry

23937150 Media and Entertainment Industry

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Media & Entertainment

ROADMAP
 Overview of Indian Media & Entertainment Industry  Entertainment sector  India Film Industry – Multiplex  Media Sector  Career opportunities for MBA’s 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

3% Music 2.8% Films 19.3% 2% Television 41.Major constituents Breakup of Indian Media & Entertainment Industry Outdoor Advertising 2.0% .5% Internet Advertising Live Entertainment 0.9% Print Media 30.9% Radio 0.

Key Drivers of the Indian M&E Industry Regulation Consumerism Content Key Drivers Pricing Advertising spend Technology .

Films for the full value chain like film financing. exhibition and marketing upto 100% (a) up to 100% in publishing/printing scientific & technical magazines. production. Advertising upto 100% through the automatic route 2. 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 3. Print Media . distribution.Guidelines for Foreign Direct Investment in the Indian M&E Industry 1.

FDI Regulations for Indian M&E Industry…2 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. The licensee should be a company registered in India under the Companies Act. HUB. etc. Broadcasting c) Cable Network upto 49% of paid up share capital. f) Establishment and Operation of Satellite FDI up to 74% is permitted with prior Government approval Source: IMaCS Analysis . 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. upto 49% paid up share capital 4. such as uplinking.

.

ENTERTAINMENT TV •STAR TV •ZEE TV •SONY PICTURES MULTIPLEX •ADLABS FILMS •PVR CINEMAS •INOX LEISURE AMUSEMENT PARK •ESSEL WORLD .

Porter’s 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% 1% 39% Mass Entertainment Hindi Film Channels Kids Channels Regional Channels English Entertainment Music Channels News Channels Sports Channels 8% 5% 38% Source: TAM Media Research .

. cable distribution. movies. 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.Largest TV network with 19 channels reaching 90% of the population Entered in 1991 and offers more than 10 channels in mass entertainment. Present in India through two kids channels and has recently bought one more kids channel . Pioneers of the Indian Television industry with 22 channels. music. kids shows. music. sports. movies etc. It is present in broadcasting. news. production and distribution of films.

Europe.000 hours of original programming in the library  Ranked as the ninth most popular brand within a decade of its launch. 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. Canada . South East Asia. with more than 80. the Middle East. Africa. .Zee Televisions  Launched in the October 1992 & keeps tab with 167 countries  Reach to about 500 million viewers globally including USA.

SWOT analysis of Zee Entertainment Strengths •High viewership ratings •Complete bouquet of channels •High subscription revenues Weaknesses •Lagging behind Star Plus •Problem of attrition •Increase in operating costs Opportunities Threats •Benefit from the robust growth of •Slowdown in India's economic the Entertainment and Media sector growth •Digitization •Increased competition •Declining viewership and revenue share of GEC channels .

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

Rs. Million Net Profit Revenue Expenses Ad Revenues Subscription Rev DTH Subscription

Sep 09 1109 5405 3897 2476 2435 514

Jun 09 913.2 4759.3 3664.2 1979.6 2409.8 467

QoQ 21.44% 13.57% 6.35% 25.08% 1.05% 10.06%

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

Television.Sony Pictures  Subsidiary of Sony Corporation of America  Provides entertainment to about 130 countries  Specializes in Movies. Home Entertainment and Games  Available on the World Wide Web .

SWOT analysis of Zee Entertainment Strengths •High viewership ratings •Complete bouquet of channels •High subscription revenues Weaknesses •Lagging behind Star Plus •Problem of attrition •Increase in operating costs Opportunities Threats •Benefit from the robust growth of •Slowdown in India's economic the Entertainment and Media sector growth •Digitization •Increased competition •Declining viewership and revenue share of GEC channels .

Rating Points & Market Share .

.  Largest in the world in terms of number of films produced per year.1 per cent till 2013. by Dadasaheb Phalke. was the first film made in India.11 billion and projects growth at 9.Indian Film Industry  Raja Harishchandra (1913).  FICCI-KPMG study values US$ 2.

000 screens & US . 95% are standalone.65.  Has 11500 existing screens. .000.36.  China . single screens.Contd…  90 years old. accorded the status of industry only in 2000.

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 .

Industry estimates .Breakup of Indian films market 1% 15% 45% 8% 17% 10% 2% 2% H indi Tam il Foreign BengalI Crossover H indi Telugu M alayalam Others Source: IMaCS Analysis.

Key Players in Multiplex  PVR Cinemas  INOX Leisure  ADLABS Films  FAME India  CINEMAX .

. PVR Bangalore. which has 11 screens.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  Aggressive expansion plans-100 screen in coming two years  Leading Multiplex operator. highest numbers among all the multiplex players  Entertainment tax burden to decline .18 million patrons in FY08.

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 .

compelling growth stories Crisil Research  E-Tax exemptions.INOX Leisure  Expansion in tier I and tier II cities  Top 25 cites .operates 29 properties but pays entertainment tax only on 10 of them .

the company entered the burgeoning multiplex business  Key player . Singh is Kinng etc. exhibition  400 screens spread across India. US. distribution.  Has produced like Gangajaal. Malaysia and Mauritius.ADLABS Films  In 2001.production. . Namastey London.

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 •THE HINDU GROUP •INDIAN EXPRESS GROUP ELECTRO NIC MAGAZIN E •INDIA TODAY •BUSINESS WORLD •OUTLOOK •THE ECONOMIST TV •AAJ TAK •NDTV •CNBC TV 18 •Z NEWS •STAR NEWS RADI O INTERN ET .

500 crore With the literate population on the rise. more people in rural and urban areas are reading newspapers and magazines today .900 crore  CAGR: 12%  Projected size by 2010: Rs 19.Print Media  Current size: Rs 10.

.

Newspaper  First printed newspaper of India was in English edited & published by James Augustus Hicky on 29th January 1780.April 1818 .Print Media 1.  Was named ‘Bengal Gazette’ which came out  Digdarshan was the first Hindi newspaper .

.

Daily IRS (2008) players Circulation (2008) Times of India 1838 3.14 million 4.3 million The Hindu 1875 1.8 million .14 million 13.2 million Hindustan Times 1924 1.45 million 5.Top key players News paper Founded Avg.

2 billion in 2006 .  In 2007 news channels generate about Rs 7 billion in advertising revenues.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. compared to Rs 6.

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

NDTV  Founded in 1988 by its current chairman and director. NDTV India. Prannoy Roy. an eminent journalist.000 employees  Its three national news channels NDTV 24/7.  Has more than 1. and NDTV Profit .

. business and health related news as well. entertainment.  Comprise of hard news. crime related news. social service programmes.ZEE NEWS  Located in Mumbai a 24 hour Hindi news channel and is a part of Zee News Ltd (ZNL). sports. lifestyle.

. CNBC TV18 is available in over 28 million households in India.CNBC TV 18  CNBC TV18 is a business news channel. a joint venture of CNBC and Television 18 India Limited.  Currently. and is considered as India`s number one news medium.

featuring news in both. Star News was previously a bilingual channel when it was in partnership with NDTV. .STAR NEWS  Star News. a 24-hour Hindi news channel offers its viewers news that is relevant to contemporary India.English as well as Hindi.  Launched in the year 1998. The programming of this channel covers the full spectrum of news ranging from politics to business.

etc.  Found a place in the Limca Book of Records.  Recognised for the receiving the highest number of SMSs as responses to contests.  Reach of more than 45 million viewers in India.AAJ TAK  Launched on 31st December 1999 premium 24-hour Hindi news channel. . the Indian equivalent of Guinness Book of World records. poll.

Relative Shares of Hindi News Channels (2008) .

Relative Share Of English News Channels (2008) .

CONTD…… .

Careers for MBA’s 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 .

direct. or coordinate the operations & develop strategic alliances and partnerships for Media And Entertainment companies .Business Development Manager: To Plan.

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

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

news and entertainment channels .Production ManagementTo help in the production of films. serials.

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 1.1. 2 in Pune: TOI .000 copies  No.1 lac subscription .00.5 lacs subscription DNA.

 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 .

International & Lifestyle & discontinued Health & International . Health.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.

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

12% .24%  Film Industry .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 83.32%  Music .1%  Television .740 crore by 2010  The expected CAGR of various segments of M & E industry in India till the year 2010 is as follows: Radio .18%  Print Media .

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Presented by Yugesh Kumar Dubey .

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