Media Monitor – October ’09 “Undoubtedly, the first six months of ’09 were disappointing for the media and ad industry. However, the industry now looks set for better times with a projected 65% growth in the next 6 months” – Pitch Magazine, July ‘09 issue More indications of improving ad outlook Share of channel promotion in break duration We recently met media planners from GroupM and 40 Colors STAR Plus Zee TV returned positive on the outlook for the advertising industry 35 in the next six months. Most channels are on high-level ad 30 utilisation till March ’10 and have hiked ad rates during the 25 festival season, especially Colors. (%) 20 The proportion of break minutes used for the channel’s 15 promotion, instead of commercial ads, has steadily 10 declined from ~25-30% in May ’09 to ~15-20% in Jul-09 Jul-09 Jun-09 Jun-09 Mar-09 Apr-09 Apr-09 Sep-09 Sep-09

September ’09, indicating pick-up in demand for May-09 May-09 Aug-09 Aug-09 Aug-09 advertising. Source: TAM, I-Sec Research Hindi GECs – Zee TV consolidating; reality shows, the current flavour Colors was the #1 Hindi GEC for most of September ’09, while STAR Plus slipped to #3 in week 40 and Zee TV continued to consolidate its position, moving up to #2 in week 40. Zee TV and Colors shared the #1 spot in prime- time GRPs over different weeks of September ’09, while STAR Plus remained #3. Sony Entertainment TV increased its GRP share and was the clear #4 in September ’09, while NDTV Imagine was a strong #5. Reality shows seem to be the current flavour on Hindi GECs, with many big-budget launches in September-October ’09. Newsprint prices inch up Domestic newsprint prices rose slightly 6.7% MoM in September ’09 to Rs24,000/MT from Rs22,500/MT, mostly due to rising wastepaper prices, though they are still down 40% YoY from the highs in September ’08. In international markets, US newsprint prices rose 3.7% or US$16.5/MT in the past five weeks to US$462 Key factors to watch for i) GRPs of new reality shows on Hindi GECs, ii) newsprint price change, iii) GRP share for Zee News (ZNL). Vikash Mantri, CFA Suchitra WL [email protected] [email protected] +91-22 66377161 +91-22 66377510

October 9, 2009 Please refer to important disclosures0 at the end of this report Media sector – Valuations

Valuations summary EPS (Rs) P/E (x) EV /EBIT DA ( x) Price Rating (Rs) FY09 FY10E FY11E FY09 FY10E FY11E FY09 FY10E FY11E Balaji Telefilms SELL 69 1.5 2.1 4.0 45.1 33.3 17.3 10.6 9.7 7.0 ENIL SELL 193 (12.7) (2.8) 5.6 NM NM 34.3 NM 20.4 10.2 HT Media HOLD 118 0.9 5.0 6.6 138.1 23.3 17.9 32.6 11.4 9.3 IBN 18 Broadcast SELL 92 (5.0) (2.2) (0.5) NM NM NM NM NM 110.3 Jagran Prakashan BUY 107 3.0 5.8 6.5 35.0 18.3 16.5 19.8 10.9 9.8 NDTV BUY 158 (81.4) (30.0) (5.9) NM NM NM NM NM 252.9 Sun TV Netw ork BUY 320 9.3 11.3 13.0 34.2 28.4 24.5 16.7 13.1 11.2 TV Today Netw ork HOLD 93 5.8 8.7 10.2 16.1 10.7 9.2 8.8 5.3 4.4 Zee Entertainment Enterprises HOLD 243 8.5 10.0 11.8 28.7 24.4 20.6 19.7 18.4 15.4 Zee New s BUY 46 1.9 2.1 2.5 24.6 21.6 18.2 14.9 12.2 10.0 NM – Not meaningful Source: Bloomberg, Company data, I-Sec Research

z We are positive on Jagran Prakashan, which remains our top pick in the sector.

z Sun TV Network has outperformed the Sensex 10% since our upgrade to BUY from Hold in August ’09, while IBN18 has underperformed the Sensex 31% since our downgrade to SELL from Hold in August ’09.

z We maintain BUY on ZNL but believe the flux in Bengali and Kannada markets is the key overhang on the stock. We recommend investing in Zee Entertainment Enterprises (ZEEL) and HT Media only on dips.

z NDTV remains a BUY (mostly from a trading perspective), whereas we recommend SELL on Entertainment Network India (ENIL) and Balaji Telefilms (BTL). We maintain our negative stance on TV Today Network (TVTN) owing to low growth opportunities.

October 9, 2009 1 More indications of improving ad outlook

z We recently met media planners from GroupM and returned positive as regards the outlook for the advertising industry over the next six months.

z According to media planners, most channels are on high-level of ad utilisation, with ad inventories mostly booked till March ’10. Also, most channels have hiked ad rates during the festival season, with Colors especially, effecting a significant ad rate hike.

z The proportion of break minutes, used for channel promotion, instead of commercial ads, has steadily declined from ~25-30% in May ’09 to ~15-20% in September ’09, indicating demand pick-up for advertising.

z More programmes on Hindi GECs are being launched by title sponsors such as Lux for Perfect Bride & Nuetrogena for Tere Mere Beach Mein on STAR Plus and Vodafone for Bigg Boss – Season 3 on Colors.

Share of channel promotion in break duration Title sponsors for shows

40 Colors STAR Plus Zee TV Show Channel Title sponsor Perfect Bride STAR Plus Lux 35 Tere Mere Beach Mein STAR Plus Neutrogena 30 Bigg Boss - Season 3 Colors Vodafone 100% Dhana Dhan Colors Rin 25 (%) Saregamapa Lil Champs Zee TV Hero Honda 20 Dance Premiere League Sony Rin Source: Company data, I-Sec Research 15

10 Jul-09 Jul-09 Jun-09 Jun-09 Mar-09 Apr-09 Apr-09 Sep-09 Sep-09 May-09 May-09 Aug-09 Aug-09 Aug-09

Source: TAM, I-Sec Research

October 9, 2009 2 Fund raising by Network18 Group companies z With the improvement in the equity markets, more media companies are looking to raise capital, including Network18 Group companies. z While Web18, the internet subsidiary of TV18, is raising US$10mn (Rs480mn) from Nokia Growth Partners (NGP) II Mauritius through a preferred stock allotment, TV18, IBN18 and Infomedia18 are in the process of raising capital through rights issues for Rs5bn, Rs5.1bn and Rs1bn respectively. TV18 is the guarantor for Infomedia18’s Rs1bn rights issue. z TV18 will raise the Rs5bn in four tranches of Rs1.26bn, Rs1.76bn, Rs1bn and Rs1bn. TV18 will issues rights to 60mn shares in the ratio of 1:2 at a price of Rs84/share, which will be collected in four tranches of Rs21, Rs29.4, Rs16.8 & Rs16.8. Fund raising by Network18 Group companies Company Amount Details TV18 5,041 Rights issue for 60mn shares at Rs84 each IBN18 5,100 Rights issue - details not yet announced Web18 480 US$10mn raised from NGP II Infomedia18 1,000 Borad approval for Rs1bn rights issue in April '09 Total 11,621 Source: Company data, I-Sec Research

TV18 – Proposed usage of funds IBN18 – Proposed usage of funds Expenditure items Amount (Rs mn) Expenditure items Amount (Rs mn) Loan repayment 3,000 Loan repayment 2,150 Investment in Infomedia18 rights issue 450 Invest in Viacom18 1,500 Investment in ventures with Forbes Media 300 Investin IBN Lokmat 250 Acquisitions & other strategic initiatives 350 General corporate purposes & issue expenses 1,200 General corporate purposes 691 Total issue proceeds 5,100 Issue expenses 250 Source: Company data, I-Sec Research Total issue proceeds 5,041 Source: Company data, I-Sec Research

October 9, 2009 3 Hindi GECs – The rule of three All-day GRP z Colors was #1 for most of September 500 9X Colors NDTV Imagine SAB Sahara One Sony ’09, while STAR Plus slipped to #3 in STAR One STAR Plus Zee TV Real week 40. Zee TV continued to 400 consolidate its position, moving up to #2

) 300 in week 40

(GRP 200 z Zee TV and Colors shared the #1 spot in prime-time GRPs over different weeks of 100 September ’09, while STAR Plus 0 remained #3 Jul-09 Jul-08 Jul-07 Jan-09 Jan-08 Jan-07 Mar-09 Mar-08 Mar-07 Sep-09 Sep-08 Nov-08 Sep-07 Nov-07 May-09 May-08 May-07 z Sony increased its GRP share and was Source: TAM CS 4+; Market HSM the clear #4 player in September ’09, Prime-time GRP partly driven by improved programme 300 9X Colors NDTV Imagine SAB Sahara One Sony performance and partly by movies. STAR One STAR Plus Zee TV 250 Real z NDTV Imagine maintained GRP share 200

during September ’09 and remained a ) 150

strong #5 player. (GRP 100

50

0 Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 4+; Market HSM

October 9, 2009 4 Slot-wise leadership – Strongly contested Performance of weekday programmes (Slot-wise average TRPs) w k 31 w k 32 w k 33 w k 34 w k 35 w k 36 w k 37 w k 38 w k 39 w k 40 Chhoti Bahu remains #1 Time slot Channels Current programme Aug-09 Aug-09 Aug-09 Aug-09 Aug-09 Sep-09 Sep-09 Sep-09 Sep-09 Oct-09 in spite of new shows 7:00-7:30PM Colors Bhagyavidhaata 1.6 1.6 2.0 1.9 2.2 2.4 2.3 2.2 2.2 2.5 STAR Plus Khelo Jito Jiyo 0.5 0.4 0.4 0.6 0.6 0.5 0.6 0.7 0.7 0.7 Zee TV Ghar Ghar Mein 0.6 0.6 0.8 0.9 0.7 0.8 0.9 0.9 0.7 0.8 Balika Vadhu remains #1; 7:30-8:00PM Colors Sw arg 1.5 1.4 1.5 1.5 1.6 1.6 1.7 1.5 1.4 1.4 Zee TV’s Jhansi Ki Rani STAR Plus Mitw a 1.5 1.4 1.3 1.4 1.3 1.2 1.3 1.3 1.3 1.2 ramping up Zee TV Chhoti Bahu 3.2 3.2 4.0 4.0 3.9 4.0 3.6 3.5 3.4 3.5 8:00-8:30PM Colors Balika Vadhu 5.0 4.8 5.5 5.3 5.7 5.8 5.9 4.7 4.7 4.6 STAR Plus Aap ki Kachheri - 2* 2.4 2.0 1.7 1.8 1.9 1.7 1.8 1.8 1.7 1.5 Zee TV’s Aap ki Antara 8:30-9:00PM Colors Bairi Piya* 3.6 3.1 3.2 3.6 3.5 2.9 4.1 2.9 2.2 2.2 Zee TV Jhansi ki Rani* 1.9 1.9 3.0 3.8 3.4 3.4 3.6 3.4 3.3 3.3 now #1. New show Bairi eJyoti 1.4 1.4 1.2 1.2 1.3 1.6 1.2 1.5 1.4 1.4 NDTV Imagin Piya on Colors. STAR Plus Kis Desh Mein... 2.5 2.5 2.2 2.5 2.7 2.6 2.5 2.7 3.2 2.9 Zee TV Aap Ki Antara 2.6 2.5 3.5 3.7 3.5 3.5 3.4 3.2 2.8 3.1 9:00-9:30PM Colors Khatron Ke Khiladi - 2 2.0 1.6 1.6 2.0 1.8 1.7 3.3 2.5 2.1 2.2 ePalkon ki Chaaon Mein* 1.6 1.2 1.1 1.3 1.2 1.3 1.2 1.3 1.0 1.0 NDTV Imagin Bidaayi remains #1, STAR Plus Bidaayi 4.8 4.4 4.5 4.9 4.8 5.0 5.3 5.2 6.0 5.0 Pavitra Rishta closing gap Zee TV Pavitra Rishta 4.1 3.7 4.4 4.7 4.5 4.1 4.0 3.9 3.5 3.9 9:30-10:00PM Colors Khatron Ke Khiladi - 2 1.2 1.1 1.2 1.5 1.4 1.4 4.0 2.8 2.6 2.6 eBasera* 1.4 0.8 0.7 1.1 0.9 1.1 0.9 0.9 0.8 0.7 Yeh Rishta #1, but Agle NDTV Imagin STAR Plus Yeh Rishta… 6.8 6.8 7.2 7.3 7.2 6.7 6.2 5.6 5.4 5.3 Janam improving. Bigg Zee TV Agle Janam... 4.6 3.6 3.9 4.5 4.1 4.1 3.8 3.9 3.8 4.3 Boss - Season 3 MColors Uttaran 3.2 3.3 3.6 4.3 3.7 4.3 3.6 3.4 3.3 3.4 10:00-10:30P launched on Colors NDTV Imagin eBandini 1.6 1.7 1.6 1.6 1.5 1.5 1.7 1.7 1.6 1.6 Sony Entertainment ke liye...* 1.6 1.4 1.5 1.6 1.5 1.4 1.7 1.7 1.5 1.7 STAR Plus Sabki Ladli Bebo 3.4 2.9 3.1 3.0 3.3 2.8 3.4 2.9 2.8 2.8 Uttaran #1. 12/24 karol Zee TV 12/24 Karol Bagh* 4.0 3.5 3.3 3.5 3.5 2.9 2.8 2.7 2.6 3.1 Bagh on Zee TV ramping up MColors Na Aana Is Des Laado 3.4 3.6 4.0 4.5 4.4 4.7 4.2 3.9 4.1 3.8 10:30-11:00P NDTV Imagin ePati Patni Aur Woh* 1.1 1.0 1.2 1.1 1.1 1.3 1.5 1.3 1.3 1.8 Sony Entertainment ke liye...* 2.1 1.6 1.5 1.6 1.5 1.3 1.7 1.8 1.3 1.6 STAR Plus Perfect Bride* 3.0 2.7 2.0 1.3 1.3 1.2 1.2 1.5 1.2 1.1 Na Aana Is Des Laado Zee TV Shree 3.0 2.6 2.4 2.9 2.7 2.6 2.6 2.4 2.2 2.4 #1, Shree #2 MColors Balika Vadhu Repeat 2.2 2.6 2.5 2.9 2.8 3.4 3.4 2.9 2.9 2.6 11:00-11:30P STAR Plus Perfect Bride* 1.2 1.3 2.6 2.3 2.4 2.0 1.5 2.0 1.0 0.9 Zee TV Pavitra Rishta Repeat 1.3 1.4 1.4 1.6 1.5 1.4 1.4 1.2 1.4 1.3 *Represents recently launched shows; Source: TAM CS 4+; Market HSM

October 9, 2009 5 Reality shows, current flavour on Hindi GECs z Among the top Hindi GECs, Zee TV is the only channel which has refrained from launching reality shows, preferring to stick to fiction shows. Its two new weekday shows have performed well – Jhansi ki Rani in the 8- 8.30pm weekday slot (3.3 average TRPs) and 12/24 Karol Bagh in in the 10-10:30pm (2.7 average TRPs). z Khatron Ke Khiladi Level 2 on Colors in the weekday 9-10pm slot garnered average TRPs of 3.4, with the finale recording 4.4 TRPs. Colors has launched Bigg Boss – Season 3 on October 4, ’09. z While NDTV Imagine’s new reality show Pati, Patni Aur Woh, has performed well with 1.8 average TRPs, STAR Plus’ reality show Perfect Bride has remained mediocre with 1.2 average TRPs. Sony is launching a dance- based weekend reality show, Dance Premiere League (DPL) in October ’09. z Sony has launched two shows from the BTL stable in October ’09 – Bayttaab Dil Kee Tamanna Hain in the 10- 10:30pm slot and Pyaar Ka Bandhan in the 10:30-11pm slot.

Top-50 programmes – Week 40 of ’09

Channel Time Days Programme Highest TRP No. of times in Top 50 STAR Plus 9:30-10:00PM Mon-Fri Yeh Rishta Kya Kehlata Hai 5.68 5.0 STAR Plus 9:00-9:30PM Mon-Fri Bidayi 5.54 5.0 Colors 8:00-8:30PM Mon-Fri Balika Vadhu 5.33 5.0 Zee TV 9:00-9:30PM Mon-Thu Pavitra Rishta 4.63 5.0 Zee TV 9:30-10:00PM Mon-Thu Agle Janam Mohe Bitiya Hi Kijo 4.56 4.0 Colors 9:00-10:00PM Mon-Thu Khatron Ke Khiladi - Level 2 4.39 1.0 Zee TV 9:30-11:00PM Fri-Sat Saregamapa Lil Champs-09 4.21 2.0 Colors 10:00-10:30PM Mon-Thu Uttaran 4.17 4.0 Zee TV 7:30-8:00PM Mon-Fri Chhoti Bahu 4.11 5.0 Colors 10:30-11:00PM Mon-Thu Na Aana Is Des Laado 3.91 3.0 Zee TV 8:30-9:00PM Mon-Fri Aapki Antara 3.74 3.0 Zee TV 8-8:30PM Mon-Fri Jhansi Ki Rani 3.58 4.0 Sony 10:00-11:00PM Sat C.I.D. 3.44 1.0 STAR Plus 8:30-9:00PM Mon-Fri Sajan Ghar Jaana Hai 3.15 2.0 Zee TV 10:00-10:30PM Mon-Thu 12/24 Karol Bagh 3.01 1.0 Source: TAM CS 4+; Market HSM

October 9, 2009 6 Share of top programmes z STAR Plus’ share of top-100 programmes declined to 30 in week 40 from 36 in week 35, while that of NDTV Imagine rose to 6 in week 40 from nil in week 35, mostly due to Pati, Patni Aur Woh. z Colors, Zee TV & Sony largely maintained their share of top-100 programmes during weeks 36-40. z Zee TV’s share of top-20 programmes increased to 5, while that of Colors decreased to 5 in week 40. STAR Plus maintained its share of top-20 programmes at 10.

Share of top programmes July August September w k28 w k29 w k30 w k31 w k32 w k33 w k34 w k35 w k36 w k37 w k38 w k39 w k40 Top 100 9X 0000000000000 Colors 29 27 23 29 27 29 28 28 28 30 30 32 29 NDTV Imagine117105321002326 Sony 1532221223222 Star One0000000000000 Star Plus 29 32 34 35 37 37 36 36 37 31 33 31 30 Zee TV 30 29 30 29 31 30 34 34 33 34 32 33 33 Top 50 Others 0232211101101 Colors 16 15 13 15 14 13 15 13 13 17 16 16 13 Star Plus 13 15 19 18 16 16 12 14 13 11 11 16 12 Zee TV 21 18 15 15 18 20 22 22 24 21 22 18 24 Top 20 Colors 656679781199105 Sony 0000000000000 Star Plus 11 12 12 9 9 8 8 9 9 10 10 10 10 Zee TV 3325335301105 Source: TAM CS 4+; Market HSM

October 9, 2009 7 Top-3 shift focus from movies

Partly on account of the five-week long multiplex-producer strike, blockbuster movies in CY09 have been few, owing to which movie acquisition costs of GECs are expected to be lower.

Share of movies in total GRPs* 30% STAR Plus Colors Zee TV

25%

20%

15%

10%

5%

0% Jul-09 Jan-09 Jun-09 Oct-09 Feb-09 Mar-09 Apr-09 Sep-09 May-09 Aug-09 * Includes GRPs from special events such as Awards events Source: TAM CS 4+; Market HSM

Movies versus original content wk 36 wk 37 wk 38 wk 39 wk 40 Channel Total Movies Original Total Movies Original Total Movies Original Total Movies Original Total Movies Original STAR Plus 280 21 259 273 18 255 281 16 266 255 10 245 237 16 221 Colors 294 31 264 325 29 296 279 29 250 263 19 244 270 29 240 Zee TV 269 26 243 254 27 227 246 26 220 221 19 202 251 29 223 Note: Movies GRPs include GRPs from special events Source: TAM CS 4+; Market HSM

October 9, 2009 8 Hindi & English general news Hindi news – Channel share Aaj Tak retained the #1 spot in the 30% Aaj Tak IBN 7 India TV NDTV India STAR New s Zee New s TEZ Hindi news segment, while India 25%

TV and STAR News remained #2 20% and #3. Zee News lost GRP share 15% in September ’09 and remained in 10% close competition for #4 spot with 5%

NDTV India and IBN7 0% Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 15+; Market HSM English news – Channel share 50% CNN IBN Headlines Today NDTV 24x 7 CNN IBN, Times Now and NDTV New s X Times Now 40% 24x7 remain in close competition 30% for the #1 spot in English news. NDTV 24x7 increased its GRP 20% share in September ’09 at the cost 10% of Headlines Today 0% Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 15+ Male; Market All

October 9, 2009 9 Hindi & English business news English business news – Channel share

CNBC TV18 remained #1 by a wide 80% CNBC TV 18 ET Now NDTV Prof it UTV i margin, though it lost some share in 70% 60% September ’09 to NDTV Profit. ET 50% Now, the new player has not been 40% able to break out and its GRP share 30% has stagnated at ~10-13% 20% 10% 0% Jul-08 Jul-09 Jan-08 Jan-09 Mar-08 Mar-09 Sep-08 Nov-08 Sep-09 May-08 May-09 Source: TAM CS 15+; Market All Hindi business news – Channel share 90% CNBC A WA A Z Zee Business CNBC Awaaz remained #1 in two- 80% player Hindi business news market 70% 60% 50% 40% 30% 20% 10% 0% Jul-08 Jul-09 Jul-07 Jan-08 Jan-09 Jan-07 Mar-08 Mar-09 Mar-07 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-08 May-09 May-07 Source: TAM CS 15+; Market HSM

October 9, 2009 10 Regional GECs – Tamil & Malayalam Tamil market – Channel share Sun TV continued to dominate the Chutti TV Jaya TV Kalaignar TV Raj TV Sun TV Vijay TV Others Tamil Nadu market, though 80% Kalaignar TV garnered 16% GRP 60% share in week 40 versus average 12%. Zee Tamizh (<2% market 40%

share) has not yet made any 20% headway 0% Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 4+; Market Tamil Nadu Asianet continued to lead in the Malayalam market – Channel share Amrita TV Asianet DD4 Malay alam Malayalam market, with Sun’s 60% Kairali Surya TV

Surya TV in the #2 spot. The gap 50%

between #1 and #2, which had been 40%

widening since December ’08, 30%

declined in September ’09 to 19.7% 20%

from 22% in August ’09 10%

0% Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 4+; Market Kerala

October 9, 2009 11 Regional GECs – Telugu and Kannada Telugu market – Channel share 50% In week 36, due to reporting on the DD8 Telugu Eenadu TV ETV2 Telugu New s Gemini TV Maa Telugu Teja TV death of the Andhra Pradesh CM, 40% TV9 Telugu New s Zee Telugu AP CM's death YSR Reddy, news channels 30% garnered a majority of the GRP share, led by TV9 Telugu News. 20%

Sun’s Gemini TV remained #1 in the 10% fragmented Telugu market, with 0% Maa Telugu in the #2 spot Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 4+; Market Andhra Pradesh

Sun’s Udaya TV, the market leader in Kannada market – Channel share 70% DD9 Chandana ETV Kannada Suvarna Kannada market, gained GRP share 60% U2 Udaya TV Zee Kannada in weeks 39 and 40 at the expense of 50%

Suvarna TV. However, overall, 40% Suvarna TV has cemented its #2 30% spot, while ETV Kannada has fallen 20% to #3 and Zee Kannada to #4 10% 0% Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 4+; Market Karnataka

October 9, 2009 12 Regional GECs – Bengali and Marathi Bengali market – Channel share Zee Bangla and ETV Bangla 60% Aakaash (Bangla) DD7 Bangla ETV Bangla continued to lose GRP share in STAR Jalsha Zee Bangla Others 50% September ’09 to STAR Jalsha, the 40% #1 player in the Bengali market. 30% STAR Jalsha’s average GRP share 20% rose to 44.8% in September ’09 10% from 41.9% in August ’09 0% Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 4+; Market West Bengal

Zee Marathi remained the #1 Marathi market – Channel share 70% DD10 Sahyadri (Marathi) ETV Mar athi player in the Marathi market in Mi Marathi STAR Pravah 60% Zee Marathi

September ’09, while ETV Marathi 50%

continued to lose share to STAR 40%

Pravah – its average GRP share 30% rose to 23.8% in September ’09 20% from 20% in August ’09 10% 0% Jul-07 Jul-08 Jul-09 Jan-07 Jan-08 Jan-09 Mar-07 Mar-08 Mar-09 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 May-07 May-08 May-09 Source: TAM CS 4+; Market Maharashtra

October 9, 2009 13 ZNL – Competition & distribution issues worry z Zee Bangla and Zee Kannada continued to lose GRP share in their respective markets in September ’09 owing to intensifying competition from the STAR Group channels – STAR Jalsha in West Bengal and Suvarna TV in Karnataka – and possible distribution issues. z Zee Marathi remained the #1 player in the Marathi market, but intensifying competition from STAR Jalsha led to loss of GRP share in September ’09. z Zee Telugu improved its GRP share in the fragmented Telugu market in September ’09 at the cost of ETV and Teja TV, even as Maa Telugu consolidated its #2 position z Zee Business lost share in the combined English & Hindi business news market, partly on account of the new English news channel, ET Now.

ZNL – Channel shares

Q1FY08 Q2FYO8 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Apr '09 M ay '09 Jun '09 Jul '09 Aug ' 09 Sep '09 Zee Bangla 37.5 36.1 41.6 46.9 44.3 38.8 33.1 33.7 27.5 25.9 29.6 30.8 25.9 25.6 Zee Business 15.5 12.3 15.0 16.4 14.1 17.9 19.8 27.0 23.4 26.0 24.0 21.5 19.8 18.4 Zee Kannada 6.6 5.6 5.6 9.9 15.3 16.8 17.1 14.8 10.6 11.5 15.4 15.8 14.9 14.6 Zee Marathi 47.8 45.1 50.7 53.7 55.1 54.6 55.0 49.8 46.9 45.2 47.2 45.3 40.9 40.6 Zee New s 12.9 10.2 11.0 10.6 10.3 10.9 10.9 11.1 10.6 10.2 10.1 11.1 11.2 10.5 Zee Telugu 5.4 6.8 8.3 11.1 10.7 11.7 14.2 14.6 15.0 15.5 16.2 15.8 14.1 15.0 Zee Tamizh 0.7 1.6 1.2 1.2 1.1 1.1 1.1 1.4 Source: TAM CS; respective markets

October 9, 2009 14 Newsprint prices inch up Domestic and imported Canadian newsprint z Domestic newsprint prices rose 45 Domes tic 1,200 Domes tic International slightly 6.7% MoM in September ’09 new sprint prices 1,000 40 up 6.7% MoM to Rs24,000/MT from Rs22,500/MT, 800 ) mostly due to rising wastepaper ) 35 600

prices, though they are still down 40% 30 (US$/MT (INR Kg / 400

YoY from the highs in September ’08 25 200 z In international markets, US newsprint 20 0 prices rose 3.7% or US$16.5/MT in Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 the past five weeks to US$462 Source: Industry US newsprint prices 800

750 US new sprint prices up US$16.5/MT or 3.7% in the 700 past five w eeks

) 650

600 (Rs/MT 550

500 450

400 Jun-04 Feb-09 Feb-08 Feb-07 Feb-06 Feb-05 Nov-08 Nov-07 Nov-06 Nov-05 Nov-04 May-09 Aug-09 May-08 Aug-08 May-07 Aug-07 May-06 Aug-06 May-05 Aug-05 Aug-04 Source: Bloomberg

October 9, 2009 15 News/updates

z Polimer TV, new Tamil GEC, was launched by Thamizhaga Cable TV Operator’s General Welfare Association, a forum comprising over 37,000 cable TV operators in Tamil Nadu. Polimer TV was earlier a local cable channel and has now been launched via the satellite platform. The channel is tipped to be the first Indian satellite TV channel to be launched by cable TV operators. z Astro values Sun’s radio subsidiary, South Asia FM at Rs6bn. Astro, through its subsidiary South Asia Multimedia Technologies (SAMT), paid Rs790.48mn for 13.02% in SAFM. SAMT already held 6.98% in SAFM and now its stake is at 20%. SAFM operates Sun’s FM radio stations outside southern states. z ESPN- STAR Sports has sold 75% of ad inventory for Champions League T20, which is set to kick off on October 8, ’09. ESPN- STAR Sports (ESS) is also handling ad sales for Doordarshan (DD) for the ICC Champions Trophy ’09 being held in South Africa, with ad revenues being split on 75:25 basis. z UTVi strikes alliance with Bloomberg. UTVi, the business news channel privately-held by UTV Software Communications’ founder-promoter Ronnie Screwvala, has partnered with global financial news major Bloomberg. UTVi has been rebranded as Bloomberg-UTV starting October ’09. z Dish TV plans GDR and FCCB issues; gets FIPB nod to raise US$200mn. Changing its earlier plan of raising US$200mn via only FCCBs, the company has decided to opt for a mix of GDR and FCCBs. Dish TV had earlier got the Foreign Investment Promotion Board (FIPB) approval to raise US$150mn through FCCBs. z UTV raises Rs1bn in debt from LIC. UTV Software Communications is raising Rs1bn through the issue of non-convertible debentures (NCDs) to Life Insurance Corporation of India (LIC). z Hathway Cable & Datacom plans IPO. Of the net proceeds, Hathway plans to utilise Rs2.4bn for customer acquisition, Rs1.6bn for digitalisation of cable TV, Rs0.8bn on broadband and Rs0.97bn on debt repayment. The MSO will have a public issue of up to 27.75mn shares, consisting of fresh issue of up to 2mn equity shares and an offer for sale of 7.75mn existing shares. PE investors ChrysCapital and Morgan will be partially exiting.

October 9, 2009 16 Media stock performance YTDCY09 Individual stock returns YTDCY09

75% Nifty 81% Sensex 173% Distribution Index 116% Print Index 83% Multiplex Index 73% B'casting Index WWIL 295% 138% DISH 229% DCHL 88% JAGP 72% HTML 129% FAME 104% INOX 65% PVR 56% CNMX 94% SUNTV 76% ZEEL 70% TV18 40% NDTV 35% ENIL 32% IBN18 31% ZEEN 31% TVTN 107% RMW 62% PRIME FOCUS 10% BALAJI

0% 50% 100% 150% 200% 250% 300%

Source: Bloomberg; As of October 8, ’09

October 9, 2009 17 Stock price performance

Stock price performance Last closing COMPANY price* Returns 12- From 52 From 52 Rs 1-Day 1-Week 1-Month 3-Months 6-Months Months YTD week high week low Deccan Chronicle 143 4 14 22 119 167 124 233 (1) 469 HT Media 118 (2) (9) (2) 36 99 24 65 (18) 230 Jagran Prakashan 107 2 2 5 51 87 65 82 (10) 166 ENIL 193 (2) (5) (14) 19 31 (7) 26 (30) 108 IBN18 Broadcast 92 (2) (8) (23) (1) 15 (6) (2) (34) 79 NDTV 158 (1) (7) 3 36 60 10 22 (17) 132 Sun TV Network 320 1 (3) 8 41 69 83 79 (7) 162 TV18 India 90 (0) (6) (15) 7 22 (25) 8 (42) 85 TV Today Network 93 (1) (4) (8) 15 25 67 19 (22) 100 Zee Entertainment 243 (0) 2 11 41 106 39 76 (3) 176 Zee News 46 1 (2) (3) 19 34 32 32 (13) 91 Reliance Mediaworks# 344 (0) (3) (4) 19 73 37 92 (26) 165 Cinemax India 61 1 (5) 11 50 30 (17) 47 (24) 149 Inox Leisure 61 2 (4) 15 51 98 21 93 (15) 222 PVR 144 (1) 2 9 49 66 28 46 (9) 150 Balaji Telefilms 69 (2) (5) 6 53 76 (44) 7 (46) 179 Prime Focus 190 (2) (6) (1) 29 67 (38) 59 (42) 271 Saregama India 78 (0) (4) (8) (2) 20 31 35 (38) 115 UTV Software 456 4 3 (8) 36 76 (33) 79 (37) 151 Dish TV India 45 0 3 (3) 33 50 129 126 (25) 284 Wire & Wireless (India) 20 (1) (5) 1 22 43 59 67 (26) 165 * As on October 8, ’09, # Earlier Adlabs Films Source: Bloomberg

October 9, 2009 18 Important terms/definitions z GEC – General Entertainment Channel z TRP – Television Rating Point z GRP – Gross Rating Point z Prime Time – 7.30pm to 11.30pm z Sep-09 implies Weeks 36-40 of CY09 (August 31, ’09 to October 30, ’09) z TAM – Television Audience Measurement z CS – Cable & Satellite Households z HSM – Hindi Speaking Market

October 9, 2009 19 Disclaimer

ICICI Securities Limited has been mandated for rendering advisory services to Jagran Prakashan Limited and is also managing the rights issue of IBN 18. This report is prepared on the basis of publicly available information.

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