Annual Report 2016-17 IMAGINING TELEViSiON iNVESTiNG RE iN GROwTH * Map is not drawn to scale and is for illustrative purposes only Contents 01-20 Corporate Overview 02 Chairman’s Message 04 Differentiated Content, Integrated Brands. 08 Re-imagining Television 10 Re-aligning Strategy 14 Rejuvenating Content 17 Re-investing into Digital Growth 18 Board of Directors 20 Corporate Information 22-99 Statutory Reports 22 Management Discussion & Analysis 49 Board’s Report 74 Business Responsibility Report 81 Corporate Governance Report 100-215 Financial Statements STANDALONE 100 Independent Auditor’s Report 106 Balance Sheet 107 Statement of Profit and Loss 108 Statement of Changes in Equity 109 Cash Flow Statement 110 Notes CONSOLIDATED 156 Independent Auditor’s Report 160 Balance Sheet 161 Statement of Profit and Loss 162 Statement of Changes in Equity 163 Cash Flow Statement 164 Notes NOTICE 216 Notice, Attendance Slip & Proxy Form The media industry has been witnessing rapid transformation in the recent past, spurred by changing demographics, evolution of content sensibilities and the emergence of new niches. Amidst this dynamic environment, our strategic focus on re- imagining and expanding our offerings is aimed at realising our long- term vision of capturing growth. Scaling up our business through expansion into new frontiers, we have given Indian Television an expanded canvas. We aim to offer consumers a diverse experience which is not limited by medium, language or genre, thereby becoming an extension of their daily lives. Our focus is on connecting with viewers at their doorstep through content designed to meet their deepest aspirations, in their language. Not satisfied with sitting on past laurels, we have actively re- invested in our portfolio with an aim to boost growth for the Company and all its stakeholders. 02 TV18 Broadcast Limited CHAIRMAN’S MESSAGE AMIDST THIS PERIOD OF FLUX, WE CONTINUED TO REINVEST IN OUR PORTFOLIO TO CREATE A STRONGER PLATFORM FOR ENHANCED GROWTH. enhanced growth. Apart from refreshing our content and brand bouquet, we made a concerted effort towards expanding our presence along the two axes of future growth we have identified – Vernacular content (both news and entertainment) and Digital delivery. Expanding our Regional footprint In regional markets, we launched 3 news channels, namely News18 Kerala, Tamil Nadu and Assam/North-East; taking our regional news portfolio to an industry-leading 14 channels covering 26 states. We also added 4 secondary channels (including 3 HD feeds) in regional entertainment; substantially increasing our footprint to 9 channels across 5 states. Going forward, we shall further accentuate our regional focus and add to the languages we already cover; to deliver to the under-served audiences content that resonates with them, in the language of their choice. I feel this will help augment our consumer connect to drive growth in the years ahead. TV18 continues to expand in television as well as digital media, and in FY 2016-17, we have continued our aggressive Strengthening our Digital Presence investments to become one of the leading media companies. Even as we build on our strengths on the traditional platforms, TV18 now has the widest range of channels in the industry - we are cognizant of the importance of expanding our 49 in India and 13 internationally. Our investments over the last digital offerings in order to harness the new-age industry few years are beginning to show success, with most of our key opportunities. Our platform-agnostic approach, coupled with channels in leadership positions, and many others firmly on the our technological prowess, has enabled us to build a powerful path to getting there. and scalable OTT platform VOOT which can deliver anywhere, anytime content consumption. Apart from a library of our The last fiscal was a tale of two halves for the broadcasting entertainment shows, VOOT delivers original content (targeted industry, as the rapid growth witnessed in the first half was at the urban millennial), syndicated kids content (making it a in sharp contrast to the substantial slowdown in advertising one-stop shop for kids) and behind-the-scenes/uncut content spends in the latter half. Amidst this period of flux, we continued from our non-fiction properties as well. With sticky usage of to reinvest in our portfolio to create a stronger platform for 40+ minutes per day per user, VOOT has emerged as one of the Corporate Overview Statutory Reports Financial Statements Chairman's Message Annual Report 2016-17 03 top online video destinations in India, and won awards and accolades in its first year. Filling whitespaces in our portfolio OUR PLAtform-AGNOSTIC In addition to our regional thrust, we are also aggressively APPROACH, COUPLED WITH OUR looking at filling the whitespaces in our entertainment bouquet. Our forays into Hindi movies through Rishtey Cineplex, and TECHNOLOGICAL PROWESS, HAS into Bollywood music through MTV Beats, were aligned to this ENABLED US TO BUILD A POWERFUL approach and in sync with the growing free-to-air opportunity. Another such foray, targeted at a niche, was the launch of our AND SCALABLE OTT PLATFORM lifestyle channel FYI TV18. It opened to great viewer response VOOT WHICH CAN DELIVER and rankings, and is on the upswing. We are continuing to look at other opportunities to expand our bouquet of channels. ANYWHERE, ANYTIME CONTENT CONSUMPTION. Refreshing content and formats Innovative content packaged in visually more appealing and cutting-edge formats is, in my opinion, the key to pursue future growth opportunities and we shall continue to focus more deeply With our core strengths and unwavering commitment to our on this area. While moving into new areas of growth, we remain long-term vision, I am confident that we shall continue to cognizant of the need to augment our existing strengths and deliver excellent growth and create even more value for all our continued to reinvest in kids’ channels such as Nickelodeon as stakeholders. well as other channels including Colors and CNBC -TV18. On this note let me thank all members of the TV18 team whose Rebranding of the English General News channel CNN-IBN as CNN- dedicated hard work has enabled us to reimagine Television News18 led to a complete transformation of this key offering. We and reinvest in growth to scale higher echelons of success year concurrently rebranded our Hindi General News channel IBN7 as after year. I would also like to take this opportunity to thank all News18 India. New shows, formats and content offerings quickly our shareholders for their sustained trust in us. Together, I am led to a significant boost in ratings, especially in Hindi. confident, we shall boost our business performance manifold as we take on the opportunities of tomorrow. Creating umbrella brands and integrated platforms The idea behind the rebranding of national news was to create Regards, umbrella brands which can dominate mindshare and steer growth across segments, with News18 emerging the mother Adil Zainulbhai brand for all general news in the TV18 (and Network18) portfolio. Chairman In line with this strategy, we shall also transition the ETV regional news channels to the News18 brand. Operationally, we integrated regional operations into the national platform in the last year, and have also taken approval to merge the entity handling regional news into TV18. In the same vein, the integration of our regional entertainment bouquet into Viacom18 was also completed during the year in review, after having transitioned them to the Colors brand in previous years. This shall yield financial and operational synergies, apart from the inherent content and brand synergies. 04 TV18 Broadcast Limited DIFFERENTIATED CONTENT, INTEGRATED BRANDS. 650 million+ Television viewers Corporate Overview Statutory Reports Financial Statements Differentiated Content, Integrated Brands. Annual Report 2016-17 05 ‘TV18 Broadcast Pillars of our growth strategy Limited’ is a subsidiary Our growth strategy is powered by our continuously evolving core strength of providing cutting-edge news and top-drawer entertainment. We remain of Network18 Media & aligned to the aspirations and needs of India’s people across genres, regions Investments Limited, and languages, and have invested substantially in enhancing our reach and relevance. one of India’s most diversified media conglomerates engaged in news, entertainment, Thought leadership Incisive content (driven by innovation (designed to meet evolving digital content, in content) consumer aspirations) filmed entertainment, e-commerce, magazines and allied Brand power Widening reach businesses. TV18 (driven by (strengthening innovation in regional & owns and operates content) vernacular base) the largest network of channels – 49 in India, spanning news and entertainment. Network synergy Strategic (cross-promotion & collaborations We also cater to the cross-pollination) (with Indian & global media houses) Indian Diaspora globally through 13 international channels. Widest portfolio in the industry TV18 is the only player in the Indian Media & Entertainment space with a portfolio spanning News, Entertainment, Infotainment and Digital across both national and regional markets. 06 TV18 Broadcast Limited From general to business to regional news, entertainment and digital, TV18’s family encompasses a complete range of broadcast offerings for people in various parts of the country and outside. TV18’s bouquet includes marquee brands such as CNBC-TV18, CNN News18 (formerly