Equity Research September 10, 2013 BSE Sensex: 19270 Media Content - The trump card ZEEL (Rs222– Reduce) Target price Rs240 Sun TV (Rs389– Buy) Target price Rs500 Dish TV (Rs43– Buy) Target price Rs60 Analogue: Content is King and Distribution is GOD; GOD chose the KING. Digital: Content is King and Consumer is GOD; GOD will still choose the KING. • Digitisation to give way to Content over Distribution. Vikash Mantri • ZEEL lags in investments. Star India raises the bar
[email protected] +91 22 6637 7161 Satish Kothari Sun TV Network is the preferred bet among broadcasters
[email protected] • +91 22 6637 7510 Akhil Kalluri
[email protected] • Dish TV is the preferred bet among distribution plays +91 22 6637 7339 Please refer to important disclosures at the end of this report Equity Research INDIA September 10, 2013 BSE Sensex: 19270 Media Content - The trump card Reason for report: Sector update Digitisation is the most common theme for investment in the Indian media sector, with broadcasters sensing windfall gains as addressable digital cable opens the floodgates to pay-TV revenues. While this thesis is theoretically true, it only showcases one side of the equation. Digitisation is a double-edged sword and is likely to transform the broadcast space with power shifting from distribution / broadcasting networks to content. In such a scenario, we believe broadcasting networks like ZEEL, Star India and Sun TV Network face a huge challenge of investing in compelling content in an era of accessible distribution. Star India has upped the ante by large audacious bets on sport (cricket) and movie satellite rights.