Indian Media Scenario

March’2011

Structure
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India - Its Happening Now India at a glance
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Diversity Basic Parameters Economic Construct Population Break Up SEC Clasification
Media reach Television Print Radio Internet Media performance on Key Metrics

Indian Media
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Content

Indian Advertising Industry revenues
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Mediumwise break up Trends over last 5 years Split between – Analog, Digital & Non C& S Growth over last year Urban V.s Rural Growth of C&S Household over years Viewership Split by languages & Genre GRPs Contribution – Analog & Digital Marketwise universe contribution Marketwise C&S penetration

A closer look at Television Media
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Outlook 2011

India – Its happening NOW!!!

Many Global Corporations queuing up to capitalise on the opportunities Second fastest growing economy in the world despite the Global slowdown effects. GDP grew at around 7. growing at a faster pace than the Urban counterparts. aims at aggressive growth rate of 9 to 10% annually for next 25 years resulting into becoming one of the largest economies of the world Per Capita income in India is US$ 740.4% during FY 09-10 Indian Govt.India – Growth Indicator Buoyant Rural economy & consumer markets. and is expected to increase to US$ 2000 till 2016-17 Source: India Brand Equity foundation & Industry Sources .

India’s GDP will match that of US by 2050 India will overtake Canada by 2012 Italy by 2017 France by 2020 UK by 2022 Germany by 2023 Japan by 2028 World’s no 3 economy by 2050 GDP estimations 2050 in US$ (Trillion) 80 60 40 20 0 71 39 38 China USA India Source: Goldman Sachs BRIC Report .

UK for $ 12. CIA world Fact book. Japan & China India-Second Fasted Growing Economy India – 3rd favorite market in global foreign direct investment Indian companies are turning MNCs through M&As Globally • On a cumulative basis. Telecommunications.2 BN • Bennett Coleman & Co Ltd(BCCL)acquired Britain’s Virgin Radio Source: India Brand Equity foundation. after USA. & McKinsey Global Institute . UKfor $1.1 BN • United Spirits’ acquisition of Whyte & Mackay.92 billion during April-December 2009 • Sectors attracting highest FDI Equity Inflows-Services Sector. the FDI equity inflows received by India stood at US$ 20. Housing and Real Estate • Tata Steel’s acquisition of Corus.India is now metamorphosed into a global brand image • India is likely become the fifth largest consumer market in the world by 2025 • According to World Bank India’s GDP ranks 5th pertaining to Purchasing Power Parity (PPP).

10 million will almost triple Source: India Today & Industry Sources .Young India with higher disposable income India has largest young population in the world 66% of Indian’s Population is below the 35 yrs of Age A sustainable young population means • A longstanding productive working population • A huge domestic consumer market Households with annual income of more than Rs.

at CAGR of 10%.3 trillion by 2018.this market size is estimated to be around 100 Billion Source: India Brand Equity foundation& Industry Reports . the 5th largest retail destination globally India’s overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.India is most attractive emerging Retail market for investment The Indian retail market. Current organized Retail in India targets 300 million Urban Middle class & 200 million Rural Rich.

India – at a glance .

of States – 29  7 Union Territories  No. of Languages  18 Official Languages  No of local dialects  More than 1500 dialects .India – a diverse country  More than 1 billion people  Urban: Rural ratio 30:70  No.

07 (Rs per $) 231m 5. Excl of %) 1173. The Economist. CIA World Fact Book & TAM .5% Adult Literacy Exchange Rates No of Households Average no.0 Source: TRAI.1MN 30.Key Parameters Parameters Population Population Under 15 INDIA ( All figs in Millions. per household 61% 46.

The Economic Construct Parameters GDP Origins of GDP Agriculture Industry Services INDIA $1.3% Structure of Employment Agriculture Industry Services % of total 52% 14% 34% India’s GDP is expected to grow at 9. The Economist & CIA World Fact Book .2% in the year 2010-11 compared to 7.1% 28.43 trillion % of total 16.4% in the year 2009-10 Source: Govt of India .6% 55.

92 Source: TAM.46% Fixed Telephone Line Subscribers Mobile Subscribers Total Cable & Satellite Household Analog Digital C&S as % of Total TV Total Broadband Internet Subscribers 35 752 116 90 26 82% 10.Madison Advertising Outlook-2010 . TRAI & Pitch .India -Key Media Indicators Parameters INDIA ( All figs in Millions. Excl of %) TV Households Total Net Advertising Spend % of GDP 141 US$ 5133 0.

Population Break Up Population Split R1 R2 R3 R4 SEC : A SEC : C SEC : D SEC : E R4 29% Urban 31% R3 28% R1 R2 3% 9% SEC : C 7% SEC : D 7% SEC : E 9% SEC : B 5% SEC : A 3% Source: IRS | Age: 12 years + | All India .

Middle/Senior Socio Economic classification based on the education & income of the chief wage earner of the house .Socio Economic Classification SOCIO ECONOMIC CLASSIFICATION (URBAN) GRID School upto 4 School yrs / literate but Illiterate 5-9 no formal years schooling E2 E2 E1 E2 E1 D E2 D D D D C D C B2 C B2 B2 B1 B1 A2 D D D D D D D D D C C C B1 B1 B1 SSC / HSC D C C B2 B1 B1 A2 B2 D D B2 B1 Some College but not Graduate D C C B1 A2 A2 A1 B1 B2 B2 B1 A2 Graduate / Post Graduate General D B2 B2 A2 A2 A1 A1 A2 B1 B1 A2 A1 Graduate / Post Graduate Professional D B2 B2 A2 A1 A1 A1 A1 B1 A2 A2 A1 Occupation Unskilled Workers Skilled Workers Petty Traders Shop Owners B'Men / Indst.Junior Officers/Executives . With employees : 0 1 to 9 10 + Self Employed Professionals Clerical / Salesmen Supervisory level Officers / Executives .

Socio Economic Classification RURAL Classification GRID Type of Dwelling/House Pucca R4 R3 R3 R3 R2 R1 R1 R1 Semi Pucca R4 R4 R3 R3 R3 R2 R2 R2 Kuchha R4 R4 R4 R4 R3 R3 R3 R3 Education Illiterate Literate but formal Edu Upto 4th Std 5th to 9th Std SSC/HSC College but not Grad Grad/PG (Gen) Grad/PG (Prof) Rural classification based on the education & the type of the house .

Indian Media .

Reach of various Media (Urban + Rural) % Reach 70 60 57 44 50 40 30 20 10 0 TV 20 18 5 3 Internet Satellite TV Print Radio Cinema Source: IRS 2010 Q3| All India | 12yrs + | All SEC | Urban+Rural .

Urban % Reach 90 80 70 60 50 40 82 72 36 22 9 TV Satellite TV Print Radio Cinema 7 Internet 30 20 10 0 Source: IRS 2010 Q3| All India | 12yrs + | All SEC| Urban .Reach of various Media .

5% Share Hindi 72 channels 46 % Share English 37 channels 2.Channels Having Language feed in more than one language(Eng/Hin/vernacular) .9 % Share Others 261 channels 1.5% Share Vernacular 176 channels 37.Television Channels & Viewership by language Total TV Channels 575 Terrestrial 27 channels 1.7% Share Cable & Satellite 548 channels 97.5 % Share Source: TAM | Market: All India| TG: All C&S 4+ | Multiple feeds.9% Share Multi feed 29 channels 9.8% Share Local Cable 5 channels 6.

TV Audience Measurement systems Parameters No.1mn + Towns . of Metered Homes( Analog + Digital) Town Classes covered No. of Cities covered Geography Gender Age Group Socio Economic Classification Education Working Status Occupation/Profession Income Levels Ownership Type of Dwelling Pan Indian Sampling Viewership Update aMap TAM 7200 8000 .1mn+ Towns & Mah LCI 87 162 Urban Urban R R R R R R R R R R Daily R R R R Weekly .

Readers in India are spoilt for choices Total Registered Titles Total Dailies & Periodicals 62483 Hindi 24927 English 9064 Vernacular 28492 • • Print has more than 10000+ unique titles in India 46% of the registered publications are in Vernacular language Source: Registrar of Newspapers For India .Print .

while IRS updates its survey results every quarter The IRS provides both the Average Issue Readership (AIR) which based on whether the respondent has read a publication within its last period of publication (last one day for dailies.Research in Print There are two sources of information for print evaluation . last one month for monthlies etc) as well as Total Readership It covers both Urban & Rural India under its survey representing around 876 Million Individual across the country above the age of 12 Yrs .Indian Readership Survey & National Readership Survey The Audit Bureau of Circulation (ABC) is a body that ratifies the circulation figures of the publications but is not used as a primary source for evaluation of publications Out of these above survey NRS has not been updated since 2006.

8 6.1 1.3 7.2 1.3 1.6 7.Top Dailies and Magazines Rank Top 10 Dailies 1 2 3 4 5 6 7 8 9 10 Dainik Jagran Dainik Bhaskar Hindustan Malayala Manorama Amar Ujala Daily Thanthi The Times of India Lokmat Mathrubhumi Rajasthan Patrika Lang Hin Hin Hin Mal Hin Tam Eng Mar Mal Hin Reach in MN 16.2 1.2 1.1 Source: IRS 2010 Q3| Reach in MN indicate Average issue readership(AIR) .2 1.9 8.8 1.7 2.0 1.2 Rank Top 10 Magazines 1 2 3 4 5 6 7 8 9 10 Vanitha (Mal) Saras Salil India Today Malayala Manorama India Today Kumudam Meri Saheli Grih shobha Cricket Samrat Grehlakshmi Lang Freq Mal Hin Eng Mal Hin Tam Hin Hin Hin Hin F F W W W W W W W W Reach in MN 2.5 10.8 9.7 7.2 7.0 13.

5 GROUP.C VB NETWORK 34 FM Stations Markets 11 24 28 45 80 9 19 12 30 247 PRIMARY CHANNEL STATIONS VIVIDH BHARATI STATIONS Private FM Stations . All India Radio (AIR) is getting ready to launch a total of 320 FM radio stations Currently there are around 250 FM stations across 90 Cities Radio TYPE GROUP.1 GROUP.2 GROUP.Radio – around 250 Private FM Stations     The radio sector is poised for an exponential growth in India.4 GROUP.B GROUP.3 GROUP.A GROUP. There is a proposal for allowing 806 private FM Radio stations in Phase III In addition.

Research/ Measurement in Radio Radio Audience Measurement (RAM) is an independent division of TAM Media Research constituted in March ’07. Market Coverage: Mumbai. Delhi and Bangalore & Kolkata RAM measures anywhere (In Home. RAM Universe is All People. At Work/College/School & Elsewhere) consumed Radio Listenership at a quarter hour level RAM uses Diary system to measure Radio Listenership. In Car. 12+ years owning an FM Device RAM delivers listenership data on weekly basis through Radio Advisor software Listener Definition: A panel member is reached if he/she listens to any particular radio station for at least 8 minutes continuous OR discontinuous in any given quarter hour .

Internet in India Active Internet Users(in Milion) 60 52 50 42 40 30 Growth of Broadband in India 20 11 10 2 0 2000 2004 2008 2010 Subscribers in Millions 2006 Subscribers % Growth 2. Similarly broadband users in India have been consistently growing on an average of around 50% Source: IAMAI & TRAI| Active users – using internet at least once a month .34 2007 3.57 39% 2010 10.92 44% The total number of active internet users in India has grown by more than 250% in last decade.13 34% 2008 5.45 74% 2009 7.

Summary of media performance on Key Metrics Parameters Syndicated Research of medium Measuring Delivery for Communication Monitoring of Ads Critical Mass Interactivity of Medium Industry Body Press P X P P X P TV P P P P X P Outdoor X X X P X X Radio P X P P X P Internet P X X P X P Cinema P X X P X X .

Present scenario 120000 100000 80000 60000 40000 Ad Rev in INR million 2008 2009 2010 20000 0 TV Count of Titles / Channels / Stations Press 62000+ Radio 250+ Cinema Outdoor Internet 500+ Advertising revenue is the major source of income for Media companies in India Source: Pitch-Madison Media Advertising Outlook2011 .

Trend of Advertising revenues in India TV 2010 2009 2008 2007 45 Press Outdoor Radio 42 Internet Cinema 6 4 3 Ad revenues in INR billion 236 187 207 177 145 119 43 40 40 41 42 0% 20% 40% 60% 39 47 48 48 48 80% 6 7 7 3 2 32 31 2006 2005 7 21 7 21 100% Source:: Pitch-Madison Media Advertising Outlook2011 .

A closer look at Television in India .

More than 100 Million C&S TV households in India Digital Households 26 mn Analog Households Non C&S Households 90 mn Total TV Owing Households 141 mn 25 mn Total Households in India 231 mn Source: TAM | Urban + Rural .

Cable & Satellite households in India has grown by around 11% % Growth C&S C&S Digital 20 Mn C&S Analog 83 Mn 31% Digital 26 Mn 12% C&S Analog 90 Mn TV Owning Households 134 Mn 6% TV Owning Households 141 Mn 3% Total Households 223 Mn Total Households 231 Mn 2010 Source: TAM | Urban + Rural 2011 .

Digital Growth driven by rural market Digital 9 Mn C&S Analog 51 Mn TV Owning Households 68 Mn Digital 17 Mn C&S Analog 39 Mn TV Owning Households 73 Mn Total Households 78 Mn Total Households 153 Mn Urban Household 2011 Source: TAM Rural Household 2011 .

C&S enabled homes on the rise in India % Rise as compared to 2003 42% 63% 109% 140% 170% Analogue Cable 140 120 100 Digital Cable 20 15 2 68 75 83 26 80 60 40 61 90 20 0 43 2003 2005 2006 2009 2010 2011 No. of C&S HHs has grown by 170% in last 8 years Source: TAM & NRS | Urban + Rural .

Viewership by language & Genre coming Broad Genre Entertainment Movie News Cable Kids Others Music Sports Terrestrial Infotainment Lifestyle Total Hindi 22 12 26 Vernacu lar 52 6 43 1 1 30 18 25 5 2 3 37 1 261 # of Channel Multi English Feed 5 1 7 13 6 5 8 4 1 1 5 Others Total 79 26 84 5 9 295 29 10 27 7 4 575 % Share of Viewership Multi English Others Feed 0 0 1 0 0 0 6 0 0 0 0 1 2 0 1 1 1 0 0 3 8 1 1 2 2 4 1 251 2 72 176 29 Broad Genre Entertainment Movie News Cable Kids Others Music Sports Terrestrial Infotainment Lifestyle Total Hindi 29 11 4 0 0 1 1 Vernacu lar 24 2 3 6 0 2 2 1 Total 53 14 7 6 6 4 4 3 2 1 0 100 0 1 46 40 10 Source: TAM | Market: All India| TG: All C&S 4+ .

0 554.6 GRP Contribution ANALOG DIGITAL 89% 85% 69% 85% 77% 86% 92% 68% 61% 89% 70% 92% 45% 58% 64% 92% 11% 15% 16% 14% 23% 14% 10% 7% 6% 11% 10% 8% 3% 9% 3% 8% .8 40.3 107.6 67.3 37.2 73.6 352.8 292.2 53.5 104.9 490.9 70. Maa Television Network Sahara One Entertainment NIMBUS Communications Limited TV9 Source: TAM| Market: All India| TG: CS 4+ GRPs 3565.GRP contribution between Analog & Digital Large Network All TV Star India Network Zee Network SunTV Network Sony Network Viacom & TV 18 & IBN Network ETV Network Turner Turner Entertainment Disney UTV Asianet Communications Ltd.0 33.0 37.4 493.

Marketwise Universe Contribution 25% 21% C&S Penetration 20% 15% 11% 10% 8% 8% 8% 8% 8% 6% 6% 5% 0% 5% 4% 2% 2% Chattisgarh 1% Orissa 1% Bihar 0% Assam WB AP Guj PHCHP DELHI MP Raj UP TN Source: TAM Maharashtra Karnataka Kerala .

Marketwise Cable & Satellite Penetration C&S Penetration 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 94% 85% 77% 99% 97% 89% 79% 94% 89% 80% 76% 93% 78% 75% 81% 81% Madhya… Chattisgarh Karnataka Kerala Bihar Gujarat PHCHP West Bengal Uttar Pradesh Maharashtra Tamil Nadu Source: TAM Andhra Pradesh Rajastan Assam Orissa DELHI .

Outlook 2011 .

big network will focus on Regional space due to geographic addressability Source:: Pitch-Madison Media Advertising Outlook2011 .8% More innovation. currently growing at the rate of 100%  TV     TV Revenues are expected to grow by 20% Advertising revenues to the Channel revenues will continue to be higher than the subscription revenues But share of subscription is only likely to grow overall. Super niche & Customized solutions to drive the media industry growth  Print   Print share in ad pie is expected to shrink from 42.Localization. rate correction will be the norm in the year 2011  Special Interest magazines will still continue to grow. with growing digital penetration& increased addressability With increasing strength of regional channels.3% to 40.

delivery efficiencies in upcountry & rural market Internet is expected to eat into print share The Medium is expected to grow by 35% Revenues on Cinema Medium is expected to witness a healthy 10% growth  Internet    Cinema  Source:: Pitch-Madison Media Advertising Outlook2011 . Radio   Licensing of Phase III & policy changes is expected to drive the growth for radio Due to Phase III licensing 700 more FM stations expected to be launched  Radio is expected to witness only 15% rise in overall ad revenues compared to 30% growth in the year 2010 The Medium is expected to witness 15% growth in Revenues compared to 27% growth  OOH   Business Interest & Expenses will be high on gaining capabilities .

Growth% 35 40 35 30 % Growth 25 20 15 13 14 17 9 10 9 15 10 7 1 1 20 15 10 5 0 60 40 20 0 TV Press Outdoor Radio Internet Cinema Source: Pitch-Madison Media Advertising Outlook . 126 113 100 2011 Ad Rev.Ad revenue growth will be driven by TV 140 Ad revenues in INR billion 120 100 80 105 2010 Ad Rev.2011 .

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