New television

markets
Exploring new television markets
Breaking into new television markets is a challenge. Where
are the new markets, how are people watching sport there
and what are the guidelines and limitations? Are the
opportunities as plentiful as predicted? Does new technology
expand your market or fragment your audience?
New Markets, New Revenues
 Same old homes, New TV products
 New TV homes
 TV homes that change their mode of reception –
terrestrial>cable>DTH>IPTV>mobile TV
 TV homes that add on totally new technologies –
internet, mobile
 New geography, new language segments, new
demographic segments etc.

Lets look at one such market - INDIA

India
Homes in million
 The 2nd largest TV market in the world Cable &
Country TV
Satellite
China 368 126
India 120 84
USA 113 113

 India – a trillion dollar economy

 Growing at 8% per annum for the last five years Source: Govt. of India

 Projected to be the world’s third largest economy after the US and

China by 2050 Source: Goldman Sachs

 The second largest consumer market in the world

 1.16 billion people Source: Estimates from Census 2001

,
Sources: Nielsen, NRS estimates, Screendigest
 Sports preferences in India
 Cricket is the dominant sport across markets, demographics and linguistic groups
 Non-cricket sports only a fraction 1-10% of cricket
 Significant following in affluent, urban homes

Average % of universe watched full sport telecast

12
10.82
10.25
10

8
TRPs

6
4.75

4
2.60

2 1.10
0.32 0.15 0.05 0.04 0.03 0.01
0
T20 Cricket World Cup IPL 20-20 Test Cricket FIFA World Olympics Wimbledon Formula Premier EPL Winter
World Cup Cricket 07 Cup 06 2004 One Hockey Olympics
07 League 2006
Source: TAM, Universe: Urban India, 400 million individuals in cable and satellite homes
Cricket rules TV in India

 Cricket captures nearly 40% Share of top 10 channels

share of TV viewing
Share of TV
Channel Genre
viewing
 The most popular form of Cricket Sport 39.0%
Star Plus General entertainment 4.2%
entertainment ahead of soaps, Sun TV General entertainment 3.7%
reality, movies, Zee TV General entertainment 3.0%
Gemini TV General entertainment 2.8%
Zee Cinema Movie 2.6%
 Second ranked general Kalaignar TV General entertainment 1.7%
entertainment channel gets only MAX Movie 1.7%

4% share Star Gold Movie 1.6%

Sony Entertainment TV General entertainment 1.5%

Source: TAM, Universe: Urban India, Individuals in C&S homes

Cricket :India-Pakistan ODI Nov 2007
New market
Cricket – major format change
 Test cricket – 5 days long; males
 One-Day Cricket – 8 hours long; males, and the
beginnings of women, families
 Twenty20 cricket – 3 hours long, evening
viewing – a major change in audiences with
more men, and more women and children

A product change creating a new market!

 New market
Multilingual commentary
 New technology would increase sports audiences
 30% higher TRPs in the South of India with a five language cricket telecast

2 language cricket 5 language cricket telecast

  telecast English + Hindi English+Hindi+Tamil+Telugu+Kannada  
  INDIA VS. SOUTH AFRICA ODIs INDIA VS. SOUTH AFRICA ODIs  
  DEC 2006 JUNE 2007  
% Increment In
Viewers Due To
MARKET TRPs Language
Feeds
ALL INDIA 5.75 6.09 5.9%
HINDI SPEAKING MARKETS 6.81 6.83 0.3%
SOUTH 3.72 4.85 30.4%

Source: TAM, Target audience: Adult males

New market
 Mobile – Voice/SMS offerings
 Internet – streaming, clips
 Milestones in Indian television
Digital Cable grows
Homes in million IPTV launched
Today
120
120 DTH services 112
introduced
110
Digital Cable start
100
90 85
77
80
68
70

60 Cable
television
50 laaunched 43
40 Colour TV 30
First technology
30
experimental introduced
20 TV broadcast
10 6.5
2 0.5 2.5
0.02
0
1959 1982 1991 2003 2006 2008

TV homes Multichannel homes DTH

Sources: NRS, Frank Hall estimates, TAM

Digitalization and sports
 Digital consumers moving up the value chain
 Potential to increase ARPUs in future

 Digital homes can receive 500+ channels solving the bandwidth issue

 Features like multilingual commentary increases audiences leading to higher

advertising revenues

Provided

Capability DTH Digital Cable

PPV No No

VOD Yes (Cricket highlights) No

     

Multiple camera angles Yes No

Multilingual commentary Yes Yes

     

Video recording No No
Sports consumption and preferences in
analogue vs. digital homes

Time spent (minutes) on Sports -

 Digital homes watch more Jan to Mar 2008
sports than analogue homes Mumbai
Sport
Analogue Digital
 Cricket dominates sports Total sports
Cricket
725
619
776
536
consumption in both analog and Soccer 21 85
digital homes Tennis 16 70
WWE 40 38
Other sports 11 19
 Digital homes consume more Sports Magazine 8 19
non cricket sports especially Car/Bike racing 5 4
soccer and tennis Basketball 1 2
Hockey 2 2
Golf 2 1
Equestrian Sports 0 0

Source: TAM, Elite Panel

Market construct
120 m TV homes, 112 m non-TV homes
Digital
Digital Cable
0.65
Cable Homes
0.65 mn
Homes
mn homes
homes
 India going analogue to digital

Pay
Pay DTH
DTH  Free DTH added 3 million TV
3.5
3.5 mn
mn homes
homes homes in rural India
 Made TV accessible to remote
Free
Free DTH
DTH locations, rural India not reached
33 mn homes
mn homes by cable

 3.5 million Pay DTH subscribers

converted from analogue cable to
Analogue
Analogue Cable
Cable TV
TV homes
homes digital in urban and affluent rural
77
77 mn
mn homes
homes India

 Digital cable
 0.65 million digital cable
Terrestrial
Terrestrial TV
TV homes
homes subscribers in affluent urban
36
36 mn
mn homes
homes markets

Non
Non TV
TV homes
homes
112
112 mn
mn

Sources: NRS, TAM

IPTV yet to make a mark
 Only state-run telcos Mahanagar Telephone Nigam Ltd
and Bharat Sanchar Nigam offer limited IPTV services
 Only 5000 subscribers nationally, 50 new subscribers daily

 Bottlenecks
 Low broadband usage/penetration
 3.24 million broadband subscribers Source: TRAI

 Slow speed
 Available 2Mbps, required 4-8Mbps
But the internet is promising
 49 million internet users in the country Source: Juxtconsult

 33% growth over previous last year

 Checking on sports/cricket is one of the top 10

online activities - 57% of users indulge in it
Mobile – 260m and growing
 Bigger than the 120 mn television homes

 Cricket is the biggest driver of value added services in India - currently

consumed on mobile in all forms video, but primarily through voice and text
 Score updates, Live commentary, VOD - Highlight clips

 Mobile TV can be viewed currently only on very high end cell phones

 MTNL a state telco offers seven TV channels to its subscribers with GPRS enabled
handsets
 Only 25,000 i.e. 1.7% of MTNL’s 1.5 million subscribers are GPRS enabled

 Pilot project launched by Nokia and public broadcaster Doordarshan to view its
channels on handsets
 Can be viewed only on high end N92 phones
 Public broadcaster channels have very low consumer pull

 Mobile TV would give broadcasters better access to youth who account for
60% of India’s population
 A demographic on the move, watches less television than average
 TV “place-bound” v/s mobile television sports consumption “on the go”
The new sports consumption
eco system in India
Enhanced viewing experience
Multilingual commentary
Multiple camera angles
VOD (highlights)

TV
Consuming sports at home
only on TV
Internet
in office/home Mobile
on the move

Live streaming
Highlights Score updates
Score updates Live commentary
VOD highlights
Action clips
THE PAST FUTURE Live match