Evaluation of 4 New Strategic Initiatives - Confidential - 0 Where are we today as a Network and the Indian TV Market… TAM’s introduction of LC1 Markets in the panel, has resulted in the ratings of the flagship channels to fall, along with reach and TSV The MSM bouquet doesn't have a material presence in the Regional space Key competition – Star, Zee and Colors have a well established presence in the regional space and Star and Zee’s flagship channels are performing better in the GEC genre, even with the LC1 expansion Absence of regional channels in the bouquet is a clear gap in the Network's genre reach Key competition, has a far more “pan-India” offering both in terms of genre spread and ratings Competition has a strategic advantage with presence in carriage. Both Star & Zee have presence in ground distribution (Star DEN, Tata Sky & Dish) MSM currently doesn’t have a “complete package” offering for advertisers and distributors - Confidential - 1 The Potential implications.. Flagship channel’s falling reach & TSV, may result in advertisers reducing the Premium on the channel With programming not targeted to female audiences in small towns, the introduction of TAM meters and further expansion, in Rural markets may result in further drop in ratings We also run the risk of being dropped by operators due to gaps in our bouquet offering and also for strategic reasons, which may further fuel a decline in reach and ratings. TRAIs mandate of 12 minutes per clock-hour for Advertising and Promotions The network should aim to target all SECs, markets, across both genres to reduce the risk of being ignored by media planners and also potentially losing presence on ground - Confidential - 2 Opportunity 1 – Female-skewed, lower SEC GEC Plan - Confidential - 3 LC1 Market – An Introduction LC 1 corresponds to towns with less than 100k population in Urban India In 2013, TAM released data for five new LC1 markets: Gujarat, Madhya Pradesh, Uttar Pradesh, PHCHP and Rajasthan. With this release, TAM now covers 92% of the HSM Urban market, up from 74% earlier These 5 new LC1 Markets comprise 17% of the universe (20% of the HSM universe). With the existing Maharashtra LC1, it will be 25% of HSM Universe Family system plays a more important role in the key decisions among the viewer’s here 75% of LC1 households are SEC CDE, higher 35+ age group and more women viewers LC 1 markets, at a broad level, consume less television than their HSM counter parts driven by infrastructure limitations Market Groups Univ (M) Univ % View % Market Groups Univ (M) Univ % View % HSM LC1 50 25% 23% UP LC1 9 8% 6% HSM 0.1-1 M 59 29% 29% Mah LC1 8 4% 2% HSM 1M + 45 22% 22% MP LC1 5 4% 4% 3 Metro 49 24% 26% PHCHP LC1 6 3% 3% HSM w/o LC1 152 75% 77% Raj LC1 7 3% 3% HSM+ LC1 202 100% 100% GUJ LC1 16 2% 4% Total 50 25% 23% TG: CS4+; Wk 1 to 13 2013 - Confidential - 4 LC 1 markets, at a broad level, consume less television than their HSM counter parts Any Channel Reach % TSV (weekly hour) GRP City AVG AVG AVG HSM LC1 88 16.0 2834 HSM w/o LC1 90 17.9 3233 HSM+ LC1 90 17.4 3133 3 METRO 89 19.3 3426 HSM 1-10 LAKH 91 17.1 3105 HSM 10LAKH+ 91 17.5 3190 MAHA L C 1 88 18.2 3190 GUJ L C 1 88 17.4 3057 MP L C 1 91 16.5 2995 PHCHP L C 1 86 17.7 3051 RAJ L C 1 85 15.7 2663 UP L C 1 90 13.8 2474 Reach is marginally lesser while Time spent is significantly lesser in LCI markets The same gets reflected in the sizable GRP gap between LC1 and HSM markets Power cuts were rampant in most LC1 towns, having a direct bearing on the viewing In LC1 markets on an average, while 95 channels are available, consumption is limited to 26 channels *CS4+. Wk 1 to 13 2013 - Confidential - 5 Movies and GEC shows have a higher share in LC1 markets Genre HSM w/o LC1 HSM LC1 MAHA LC1 MP LC1 GUJ LC1 RAJ LC1 PHCHP LC1 UP LC1 Hindi GEC 39% 44% 34% 49% 43% 46% 46% 47% Hindi Movies 17% 23% 20% 26% 21% 27% 17% 25% Kids 8% 6% 7% 5% 8% 6% 7% 6% All Regional 14% 7% 22% 0% 3% 0% 9% 2% Music 5% 5% 5% 4% 5% 5% 3% 6% Hindi News 4% 4% 3% 5% 4% 5% 4% 4% Cable (Regional) 3% 4% 2% 2% 9% 3% 8% 4% Sports 3% 3% 3% 2% 4% 2% 2% 2% Others 6% 5% 3% 6% 3% 6% 4% 5% Grand Total 100% 100% 100% 100% 100% 100% 100% 100% All LC1 markets have strong viewership skew towards Movies channels Gujarat & Punjab LCIs have more viewership in cable regional channels whereas Raj, UP & PHCHP show no such trend. LC 1 markets across states do not seem to be similar in nature. They mirror the viewership trend for their mother market much more than they do with LC 1 markets *CS4+. Wk 1 to 13 2013 - Confidential - 6 LC1 – Prime-time is 7 to 10 pm 30 Viewership Pattern Across the day 25 20 15 10 5 0 2:00 3:00 In LC1 markets,4:00 peak time is 8- 8.30 PM and it dips 5:00 6:00 7:00 8:00 9:00 10:00 11:00 this markets tend12:00 to be in before 10 PM 13:00 14:00 15:00 16:00 17:00 - Confidential - 18:00 19:00 20:00 HSM W /O LC1 21:00 HSM LCI HSM W ith LC1 at 9.30 PM,22:00 top shows in 23:00 *CS4+. Wk 1 to 13 2013 7 Movement in GEC genre over past SAB, Life OK and Star Utsav have gained both in GRP and Reach Avg Weekly GRP (All Day) Avg Wkly Reach% (All day) Channel CY 2010 CY 2011 CY 2012 CY 2013 CY 2010 CY 2011 CY 2012 CY 2013 Sony Ent. TV 171 196 216 170 58 57 58 55 Star Plus 341 309 266 261 62 61 59 59 Colors 287 242 219 212 62 59 55 53 Zee TV 239 191 212 222 58 54 54 53 SAB 103 130 131 139 41 42 43 43 Life OK (Star One) 45 39 109 126 35 33 46 46 Sahara One 27 31 37 25 29 30 29 24 Star Utsav 22 29 37 53 14 15 15 20 GEC 1236 1167 1226 1206 Average Time spent over the years is showing a decreasing trend, except in case of specific channels 2011 2012 2013 Channel Allday Primetime Allday Primetime Allday Primetime Sony Ent. TV 101 75 112 84 92 69 Star Plus 154 107 135 103 136 106 Colors 123 96 120 97 118 102 Zee TV 107 90 117 94 124 100 SAB 92 65 91 67 98 79 Life OK 36 27 70 50 81 64 Sahara One 31 26 38 34 30 28 Star Utsav 58 45 72 65 79 81 Zee Smile - - 58 58 41 36 - Confidential - 8 Based on research, Television content has 6 roles in LC1 Markets Definition Shows/Channels The Knowledge Diya Aur Baati Hum: -Importance of Which creates the awareness in these markets Education, KBC, Crime Patrol, Source Savdhaan India For those housewife who are not allowed to move out of Star Plus, e.g. Akshara, Sandhya, The Companion the house in many small towns are do not have any very Gopi, etc. little say in the family The Diya Aur Baati Hum, Pratigya – Empowerment Women empowerment had a similar impact in these towns Fighting oppression, Afsar Bitiya, as it does in the bigger cities Balika Vadhu, Hitler Didi, Punar Source Vivah The Rejuvenator This benefit featured prominently for both males and Taarak Mehta, CID, Comedy Circus females, but in different ways & all films Allowed viewers to escape into worlds that were more The Escape Good sets, costumes, jewellery, etc. glamorous, interesting and vibrant than their own mundane on Star Shows Agent lives. The Change Led to real changes in viewers lives, which they had Diya Aur Baati Hum, Saathiya, Yeh Agent experienced and could verbalize Rishta, DID, JDJ) “The imagery was driven primarily by alternative programming like: Crime shows and the absence of higher emotional states in its content makes Sony vulnerable as a channel”- ORMAX Source: ORMAX Media Report - Confidential - 9 Impact of LC1 on GECs Zee TV has gained, Star plus has maintained, while Sony and Colors have lost viewership W/O LC1 With LC1 256 258 260 227 213 213 220 210 187 174 147 142 160 121 116 110 53 38 Avg wkly GRP 60 10 SET SAB STAR Plus Colors Zee TV Life OK Star Utsav *CS4+. Wk 1 to 5 2013 Driver Content for LC 1: Serials, Movies, Mythological Non Fiction, Reality shows could be used as marketing stunt but cannot drive appointment and viewership Zee TV’s heritage advantage gave it a clear edge over others Star Utsav and Zee Smile make strong gains in the LC 1 markets. However these gains are basis FTA status and NOT basis their content - Confidential - 10 Only 1 daily soap (Taarak..) appears in the Top 20 shows while all 3 SET shows are broadcast on weekends.. Programme Channel Slot TVR SET Show SET TVR SAB Show SAB TVR Diya aur baati hum Star Plus M-F 9pm 4.8 Chhanchhan 1.4 Chidiya Ghar 2.2 Balika vadhu Colors M-F 8pm 4.1 Anamika 1.0 Baalveer 1.5 Yeh rishta kya kehlata hai Star Plus M-F 9:30pm 3.9 Parvarish 1.0 Jeanie Aur Juju 1.3 Taarak mehta ka ooltah chashma SAB M-F 8:30pm 3.9 Amita Ka Amit 0.7 - Sapne suhane ladakpan ke Zee TV M-F 7:30pm 3.6 Khoobsurat 0.6 Jeanie Aur Juju Repeat 0.6 Saathiya saath nibhana Star Plus M-F 7pm 3.6 Crime Patrol Repeat 0.7 Taarak Mehta Rpt 0.6 Pyaar ka dard hai Star Plus M-F 10pm 3.6 Kya Hua Tera Vaada 1.0 Hum Aapke Hain In-laws 0.8 Madhubala ek ishq ek junoon Colors M-F 8:30pm 3.5 Amita Ka Amit 0.7 Taarak Mehta 3.9 Sasural simar ka Colors M-F 7:30pm 3.3 Khoobsurat 0.6 Jeanie Aur Juju Repeat 0.6 Indias best dramebaaz Zee TV Sat-Sun 9pm 3.2 Comedy Circus/CID 2.7 Hff/Fiction Repeat 0.9 Qubool hai Zee TV M-F 9:30pm 3.1 Parvarish 1.0 Jeanie Aur Juju 1.3 Pavitra rishta Zee TV M-F 9pm 3.0 Chhanchhan 1.4 Chidiya Ghar 2.2 Kaun banega crorepati SET Fri-Sun 8:30pm 2.8 - Hff/Taarak Rpt/Gutur Gu 2 1.4 Veera Star Plus M-F 10:30pm 2.7 Bade Achhe Lagte Hain 1.9 FIR 0.9 C.I.D.