NOVEMBER Entertainment 2011 For updated information, please visit www.ibef.org 1 NOVEMBER Entertainment 2011 Contents Advantage India Market overview and trends Growth drivers Success stories: UTV, SUN TV Opportunities Useful information For updated information, please visit www.ibef.org 2 NOVEMBER Entertainment 2011 Advantage India 2015E Growing demand Opportunities Market Size: • Industry to grow at a CAGR of • Rising incomes and evolving USD25 lifestyles have led to higher 13.2 per cent over the next five demand for aspirational products years, one of the highest rates billion and services globally • Higher penetration and a rapidly • Television and AGV segments increasing young population will expected to lead industry provide further boost to the growth; opportunities in digital technologies as well demand Advantage India Higher investments Policy support • Policy sops, increasing FDI limits • Higher FDI inflows • Measures such as digitisation of cable • Increasing M&A activity distribution to improve profitability and ease of institutional finance • More big-ticket deals such as Walt Disney- UTV, Sony-ETV and Zee- 2006 Star • Increasing liberalisation and tariff relaxation Market Size: USD9.2 billion Source: 2015 estimate as per PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: AGV- Animation, Gaming and VFX, VFX- Visual Effects, M&A- Merger and Acquisition, CAGR- Compound Annual Growth Rate, FDI- Foreign Direct Investment, E- Estimate For updated information, please visit www.ibef.org ADVANTAGE INDIA 3 NOVEMBER Entertainment 2011 Contents Advantage India Market overview and trends Growth drivers Success stories: UTV, SUN TV Opportunities Useful information For updated information, please visit www.ibef.org 4 NOVEMBER Entertainment 2011 The sector is split into seven segments … (1/2) → Total market size in 2010 was USD13 .5 billion Segmental composition of entertainment (2010) → The entertainment industry continues to be dominated 2% 1% 3% by television, print and film segments, which together garner 88.7 per cent of the market share 5% Television → In the last few years, the industry has witnessed rapid Print 14% digitisation of elements including content, business Film process, and product innovation 47% AGV Radio Music 28% Others Source: PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: AGV- Animation, Gaming and VFX, VFX- Visual Effects For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 5 NOVEMBER Entertainment 2011 The sector is split into seven segments … (2/2) Television Others Print Entertainment Music Film Radio AGV Source: PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: AGV- Animation, Gaming and VFX, VFX- Visual Effects For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 6 NOVEMBER Entertainment 2011 The Indian entertainment industry is growing rapidly … (1/2) → The total market size grew from USD9.2 billion in 2006 Market size (USD billion) to USD13 .5 billion in 2010, a CAGR of 10 .1 per cent CAGR 13.5 → The industry recorded one of the highest growths in 10.1 % the world in 2010, growing at 11 .2 per cent 11.8 12.1 10.7 9.2 2006 2007 2008 2009 2010 Source: PwC India Entertainment and Media Outlook 2011, Aranca Research For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 7 NOVEMBER Entertainment 2011 The Indian entertainment industry is growing rapidly … (2/2) → During 2006-10 , television revenues expanded at a Size of major industry segments (USD billion) CAGR of 12.5 per cent to USD6.4 billion 4.0 → Advertising revenue growth has been behind the Television consistent rapid growth of the television industry 6.4 2.7 Print → Over the same period, revenues in the print segment 3.7 expanded to USD3.7 billion, a CAGR of 8.2 per cent 1.8 Film 1.8 Notes: CAGR- Compound Annual Growth Rate 0.3 AGV 0.7 0 2 4 6 8 2006 2010 Source: PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: AGV- Animation, Gaming and VFX; VFX- Visual Effects For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 8 NOVEMBER Entertainment 2011 Key players in the entertainment industry- Television Company Business description Star India Pvt Ltd • Fully owned subsidiary of News Corporation • Portfolio includes 32 channels in eight languages across various categories such as soaps, reality, news and films • Also manages a portfolio of business ventures including DTH operator Tata Sky, cable system Hathway, channel distributor STAR Den, news channel operator MCCS, the film production and distribution business Fox STAR Studios India and STAR CJ Home Shopping Zee Entertainment Enterprises Ltd • Fully owned subsidiary of Essel Group • One of the largest producers and aggregators of Hindi programming in the world • An estimated reach of more than 500 million viewers across 167 countries • Pioneer of television entertainment industry in India; launched Zee TV- the country’s first Hindi satellite channel • Range of businesses across the value chain in the M&E industry Multi Screen Media Pvt Ltd • Fully owned subsidiary of Sony Pictures Entertainment • Comprises of Sony Entertainment Television (SET) and SAB, leading Hindi general entertainment television channels; MAX, a movies and special events channel; and PIX, a channel that airs Hollywood movies • Its programming spans across various genres including drama, reality, comedy, horror, Bollywood and live events Source: Company Websites, Business Week, Aranca Research Notes: M&E- Media and Entertainment For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 9 NOVEMBER Entertainment 2011 Key players in the entertainment industry- Print Company Business description Bennett, Coleman and Co Ltd • Largest media conglomerate in India • Publishes world’s most widely circulated English broadsheet daily ‘The Times of India’ and second most widely circulated financial daily ‘Economic Times’ • Other prominent publications include magazines such as Zigwheels, Filmfare, Femina and Top Gear and Hindi dailies such as Navbharat Times and Sandhya Times • The group has also diversified into radio and television business HT Media Ltd • Hindustan Times is the second most widely read English daily in India • Other prominent publications include the business daily Mint and the Hindi daily Hindustan • The group has also forayed into many adjacent businesses such as print and digital services, internet, radio, and events and marketing solutions • During FY07-FY11, the group’s net profits grew at a healthy CAGR of 38.4 per cent Living Media India Ltd • India Today and Readers Digest are among India’s most circulated magazines • Other prominent magazine publications include Business Today, Cosmopolitan, Time, Golf Digest, Design Today, Money Today and The Chartered Accountant • The group has interests in various other businesses such as radio, events, printing, music, television, education and publishing Source: Company Websites, The Times of India, Aranca Research Notes: CAGR- Compound Annual Growth Rate, FY- Financial Year For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 10 NOVEMBER Entertainment 2011 Key players in the entertainment industry- Film Company Business description Yash Raj Films Studios • The only privately owned film studio in India • Apart from film production, the company has also expanded into distribution of films and music, home entertainment, production of television software, ad films, documentaries and private label music production • The company launched a youth films studio Y-Films in 2011 to connect with the large young population of the country Eros International Media Ltd • Strong distribution network spanning across 50 countries and over 27 dubbed foreign languages • One of the largest content owners in the industry having a film library of over 2000 films, thus ensuring stable, recurring cash flows • The company is diversifying into Marathi, Punjabi, Tamil and other regional language films to leverage upon the growing demand for regional cinema Red Chillies Entertainments Pvt Ltd • Founded in 2002 as a film production house, the company has branched into TV shows and advertisement, visual effects and multi-media production equipment leasing • Its latest upcoming venture 'Ra.one‘ is Bollywood's most expensive movie and very first Sci-fi movie • It also owns the Kolkata Knight Riders cricket franchise in the Indian Premier League Source: Company Websites, Business Week, Aranca Research For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 11 NOVEMBER Entertainment 2011 Key players in the entertainment industry- Music Company Business description Music Bharti • A wholly owned subsidiary of Bharti Airtel • The largest music company in terms of revenues • Provides mobile-based value-added music services (VAS) such as hello tunes, call back tunes, music on demand, Mirchi mobile and Airtel radio Saregama India Ltd • The company owns the largest music archives in India, one of the largest in the world • It uses the music labels Saregama, RPG Music and HMV • The company is making efforts to digitise its catalogue to make inroads into the digital music market and counter declining physical music sales Super Cassettes Industries Ltd • The company owns the rights to over 2,000 video and 35,000 audio titles, comprising of nearly 24,000 hours of music • The company has diversified into film production, consumer electronics and mobile