Media & Entertainment Sector Report

Presented by: Group 1

Introduction
Television: Over 690 satellite channels

Total size US $15.38 billion till 2012

Film Industry: Among the largest in the world Print Media: Over 70000 newspapers with nearly 100 million copies sold

Radio: 245 active radio stations

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Television
1959 Television began on experimental basis Doordarshan becomes a seperate Dept Satellite Instructional Television Experiment DD National Coverage Through Satellite Insat 1A

1976

1982

1983

Government Sanctions Huge expansion of DD

1991

Entry of foreign players Star TV, MTV, etc.

1997

Establishment of Prasar Bharti

2003

CAS introduced

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Film
1896 1898 1912 1931 1937 1951 1952
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First Cinema Show in India in Bombay First Bioscope brought to Calcutta

Shree Pundalik First theatrical film released Raja Harishchandra First Indian Feature Film produced

Alam Ara First Indian talking Film realeased

Sant Tukaram First Indian film screened at an international film festival Kisan Kanya First color film released

Central Board of Film Censors established

Filmfare awards introduced

Print
1780 Bengal Gazette First Indian Newspaper in Calcutta Bombay Herald First newspaper in Bombay Samachar Darpan First newspaper published in an Indian language (Bengali) Samachar Sudha Varshan First Hindi newspaper Total Number of newspapers and periodicals 41705; 4720 dailies & 14743 weeklies Second largest market in world for newspapers 99 million newspaper copies

1789

1818

1854

2005

2008

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Radio
1924 1930
1936 1957 1967 1977 1994
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Set up of private radio service in Chennai British Govt gave licenses to launch Radio Stations in Mumbai and Kolkata

Govt takes over broadcasting facilities and begins operations as Indian State Broadcasting Services

Renamed All India Radio

Vividh Bharti Service Launched

Commercials introduced

FM broadcasting started in Madras

85 FM stations and 73 short wave stations

Environment Scan
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Global Context
Chinese Equation Newsprint prices on the rise
Have risen by 10-12% over the past few years Supply exceeded demand until 2007, then sharp decline in productio n

Industry Consolidation

Demand supply gap necessitat es capacity rationaliza tion Smaller publishers being taken in by larger players to absorb rising costs

Reduction in supply of Old News Print (ONP) due to reduction of primary raw material supply. Increased domestic consumpti on also a factor

Rising Crude Prices

Freight rates increase leading to inflated cost of productio n. Declining rupee an added concern

Digitalization

Focus shifts to the second and third screens: mobile and tablets Steady increase in media delivery through apps and online channels

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Size of the M&E Industry in India

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Segment Revenue Contributions

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Constituents of Advertising Revenues

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Political Service tax and customs duties FDI in the print industry The MRTP act and cartels Surrogate advertising

Economical 26% FDI in print attraction of more foreign investment Global economic slowdown Contribution of E&M sector to GDP increasing Effect of Inflation affects purchasing power and advertisement expenditure

PEST Analysis
Social

Technological

Higher literacy levels, increased purchasing power Effect on children Language and religious barriers Censor issues
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Improved machinery for printing, coloring Increased capcaity and rate of production Shift to mobile and internet publishing
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The Impact of Technology

Demands of connected consumer s

Crossplatform advertisin g and measurem ent

Technology

Blurring boundarie s between valuechain players

Need to extract insights from big data

13 Source: CII report on the industry, published by PwC MKOS - Section CE&M - Group 1

The Impact of Technology (contd.)

The Connected Consumer
Content consumption will no longer be linear or passive Need for personalized experiences

Blurring boundaries
Content distributors and technology companies increasingly fighting for the same media space Direct-to-consumer digital distribution the way ahead

The power of big data

Especially important for advertisers to understand, target and engage with customers better Need to exercise balance between relevance and privacy concerns

Cross-platform advertising opportunities

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Assist rates on the rise across media platforms Need for effective measurement of advertising spend

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Regulatory Framework in India

The E&M sector in India is regulated primarily by the Ministry of Information & Broadcasting and the Telecom Regulatory Authority of India (TRAI) Major functions: to monitor, regulate and promote the growth of the sector in the country The I&B ministry is also responsible for the administration of Prasar Bharti, Doordarshan and All India Radio.
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Recent Policy Decisions

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Present Scenario
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Demand Drivers for M&E

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 No. of Screens

Popularity of Indian movies abroad

Average Ticket Price

Filmed Entertainment

Disposable Incomes
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No. of Movies Released

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 No. of TV Channels & Niche Segments

Television
Digital Platforms Disposable Incomes

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 Literacy Rates

Print
in penetration Ad Spending

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 Mobile & Car Users

Radio
Proposed in FDI limit to 49% Phase 3 licensing

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Major Players
Major Players

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Major Players in M & E (by Mark Cap)

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Employment potential & Skills requirements

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Project Human Resource Requirements 2008 to 2022 (in 000s)

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Challenges facing M&E

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IPR Issues

Domain Name disputes Legal Cyber Due Diligence

Challenges

Price Control

Technological
Others InnovationPolicy Mismatch
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Digital Preservation

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Future Prospects
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The Future

Share of subscriptio n revenue in TV to Radio industry to increase grow at 10% from 36 to 48% by till phase 3 2017 21% After (CAGR)
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14% CAGR ExpectedTV Radio & Digital all doing well

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Will the Reach Expand???

Remains largest medium in India

18% CAGR (2012-17)

Digitisation: Will provide opportunities to both digital & DTH FMCG remains top investor Regional market will dominate

Television

Print

Radio

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Will the Reach Expand???

5.8% CAGR (2012-17)

Newspaper Clout Auto & FMCG remains top investor Regional market will dominate

Television

Print

Radio

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Will the Reach Expand???

10% CAGR (2012-17)

Increased penetration of mobile phones has increased radio reach Delay in the phase 3 has hit the channel

Television

Print

Radio

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Competition
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TV Value Chain

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Game Changers: Television

Television Sales : 14 million TV sets; LCD and LED panels account for 40% sales and expected to grow by 100% until 2017 Paid C&S Base Expected to Go To 173 Million by 2017 Launch Of New Television Channels Mobile Television Rising : Reaching the consumer even when the consumer is not at home. Online Advertising for TV

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Key Trends : Films

Regional Films gaining popularity: Jatt and Juliet(2012) Largest Grossing Film of all times Digitisation of Cinema Screens: 70% ; UFO Moviez India Gaming, Animation and Social Media as increased forms of promotion: E.g. Ra.One Home Video segment is showing a declining trend; Youtube DTH PPV Model 3D Films are on a rise demanding a higher ticket price. Premium VOD; Day and Date Releases Lack of good Broadband structure have kept global players like Hulu; Netflix at bay
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Game Changers: Print Advertisers

Newspapers have digital presence and archives; Digital Content is free compared to paid world trends Micro-Payment Technology: NFC Open Journalism: E.g. The Guardian Streaming: Helps in Cross Selling Ad inventory Space IBNReal Time and HT Tweets Social Listening Tools Mergers and Acquisitions in Print 1. Increasing Interest by Telecom Companies. 27.5% Stake in Living Media by Aditya Birla Group 2. Go National Agenda: Dainik Jagran
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The French Connect

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Global Context
Technology platforms are evolving rapidly, new business models are emerging, consumer viewing habits are changing, new competition is arising from multiple sectors.

Companies are under intense pressure to devise more effective revenue models, especially in the face of recent double-digit cuts in advertising spending.

Traditional business models are failing Today the audiovisual and advertising landscape is changing very fast. More and more offers and new media challenge with present economic models .

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Political No censorship Obligation for TVs to present at least 30% of French programs Variety of programs

Economical Crisis of written journalism Crisis in the publishoing sector, european crisis, Audiovisual landcscape evolves a lot

PEST Analysis
Social Technological

Rise of the number of digital natives, Growing interest for digital information Rise of illegal uploads

Digital revolution Intenet Boom

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Industry Structure
In France, M&E industry is a very large sector integrating a lot of different actors: Music, Publishing, Press, Radio, Film, Advertising, TV, Internet and video games

The boom of digital medias is a real threat for traditional M&E. With the growing use of mobile and the rise of illegal uploading, the major actors of the industry will have to adapt
With the constant creation of new medias, a new concept appeared: the war of contents
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Industry Structure Key Figures

More than 50 billion euros turnover for the year 2009, of which 38 billion were earned by the 100 biggest french companies. 40% of this turnover was made by audiovisual companies M&E sector is very dependant on the state, that give a lot of money, the sponsorhip, that invest a lot, and the advertisment, which is the bigget source of revenue

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Industry Structure Major players

- TV: France2 and France 3 are the two majors public channels, TF1 is the bigger private one. - Radio: Radiofrance is the major radiogroup in France. It releases its progrma in different languages and is internationaly famous - Newspapers: OuestFrance is the most read newspaper in France. However, Le monde, Le Figaro and Libration are very famous in the cities.

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Industry Structure - Evolution

The most important evolution in the M&E sector is the evolution of supports

From traditionnal support and media, we are now arriving in the digital rea

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Employment Potential & Skills Requirement

Today, there are 3 times more journalists than in the year 1975. They were 10 000 in 1975 and are 31000 in 2013. However, the sector is in crisis and the job opportunities are rare. The publishing sectors allow 25,000 people to have a job. With the development of digital books, the sector is experiencing a revival that allow a little job creation However, the number of employees remains stable.

The thing is, M&E is a very special sectors that requires specific skills. To find a job in this sector, it si often required to have studied in french private and prestigious schools (CELSA, SciencesPo, Business school) and to have a great experience in this domain. MKOS - Section C - Group 1 50

Actuality: Merger of Advertising Giants: Omnicom and Publicis

28th, July 2013

Big Data Facing new competitors (Google, facebook, Twitter)

New challenges

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Targeting new audience

Integratin g new channels

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Thank You!!!

Presented by:

Aastha Malhotra Nikhil Saxena Abhinav Gupta Marine Loillier

12IB-001 12DCP-073 12DCP-002 13FRN-330

Rohith Desikan Salil Srivastava

12DCP-095 12DCP-099

Anne-Laure Thupin 13FRN-331 Mathilde Noizet 13FRN - 303

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 http://www.pwc.fr/presentation-de-letude-globalentertainment-and-media-outlook-2013.html http://www.accenture.com/SiteCollectionDocume nts/PDF/Accenture_Driving_Growth_through_Innova tion_in_Media_Entertainment.pdf http://www.pwc.fr/le-digital-portera-64-de-lacroissance-du-secteur-des-medias-and-loisirs-dansle-monde-dici-2017.html

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