Pep 1 media

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Entertainment & MediaIndustry

Growth outperforms the economy

One of the fastest growing sectors of theIndian economy

Current Size : Rs 40,230 Crore

Estimated growth rate : 20 % over the next 4years

Source : PwC analysis

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The Growth Drivers

Consumerisation of urban India

Rising proportion of

young population

Increase in

income levels

Changing spending

patterns

Increase in numberof working urbans

Increase inspending power

Rising aspirationlevels

Consumption of lifestyle items

Source : Lifestyle consumption by Edelweiss Securities Pvt Ltd

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Films Television Radio Media MusicE&M Sector

Content Commercial (Hindi& Regional) Cinema

Art Movies

Cartoon Movies

Commissioned

Programs

News & Current

Affairs

Commissioned

Programs

News & Current

Affairs

Fiction/Non

Fiction Articles

Film Music

Private Albums

Delivery Cinema HallsHome Videos

(Video Cassettes,

VCDs, DVDs,)

Cable

Terrestrial

DTH

IPTV

Public

Broadcaster

FM Channels

Newspapers

Magazines

Books

Cassettes

CDs

Mobile

Phones

Internet

---------- Straight line denotes Traditional Delivery Mechanisms

- - - - Dotted line denotes Converged Delivery Mechanisms

Technology is changing the face ofMedia Industry


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Major constituents

Live Entertainment

2%

Internet Advertising

0.3%

OutdoorAdvertising2.5%

Print Media

30.9%

Radio

0.8%

Films

19.3%

Music

2.0%

Television41.9%

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Television

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Avenues

Production/co-production of content

Broadcasting of TV channels

Distribution of TV channels through cable and new delivery platforms like DTH andIPTV

Technology transfer for digital content creation

Marketing of TV rights/air times

Strategic investment in existing companies in broadcasting, distribution and content

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An Explosion Of ChannelChoices

0

50

100

150

200

250

300

350

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

No

ofchannels

New launches & delivery mechanisms lead to

exponential growth in number of channelsSource : TAM

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Industry size & growthpotential

12870 14800

17000

20300

25000

32700

42700

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F

INR

Crore


Industry projected to grow at an annual compounded

rate of 26% per annum over the next 4 years

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Growth Drivers

Subscription

Projected CAGR of 29 % over the next 5 years

Current average monthly collection : Rs 130.

Projected : Rs 250 (by 2010)

Advertising

Ad spend in India : 0.48 % of GDP ;

global average = 0.96%

Increased reach of the medium due to expanding

delivery platforms and technology advancements

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Print

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TYPES OF PRINT MEDIA

oNEWSPAPERS

o MAGAZINES

o DIRECTMAIL

o YELLOW PAGES

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Growth intitles

49145

58469

44000

46000

48000

50000

52000

54000

56000

58000

60000

2001 2003-04

Registered publications

Source : RNI

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978010900

1210013500

15300

17300

19500

0

5000

10000

15000

20000

25000

2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F

INR

Crore




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Growthdrivers

Booming economy resulting in increased jobcreation

More number of household with high spending

power - service sector boom

Rural / lower SECs provide vast opportunity forprint players

IT advancements will lead provide easy accessto rural areas

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Keytrends

Tapping the reading population : The readership of print media currently stands at 27 %

Growth will be driven by increase in literacy levels

7 dailies in India have readership over 1 Cr: Dainik Jagran,

Dainik Bhaskar, Eenadu, Lokmat , Amar Ujala, Hindustanand Daily Thanti

Building a pan-India presence

Publications drive growth through geographic expansion Eg: HT launch in Mumbai, Deccan Chronicle in Chennai,

Midday in Bangalore, new editions from Dainik Jagran,Bhaskar, Business Line in Mumbai

Source : NRS

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Keytrends

According to World Association ofNewspapers (WAN)

Indian newspaper sales increased 7 % in 2005(vs 0.56 % worldwide) and 33 % during 2001-

05 (vs 6 % worldwide) India is the 2nd largest newspaper market with

7.8 Cr copies daily (China 9.6 Cr)

Indian newspaper advertising revenue

increased 23.2% over 2004 (vs 5.7 % globally)

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Radio

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FMRadio

Sector opened up after years ofgovernment dominance

338 licenses given away for 91 cities in the 2ndphase of radio privatisation

20 % FDI allowed by government Eg: Virgin Radio tie up with HT Media, Mid day

& BBC for Radio One

Revenue share agreement in contrast tothe earlier fixed license fee regime

Only 20 stations were set up after auctioning of108 frequencies during round 1 of

privatisation

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240300

370

550

800

1000

1200

0

200

400

600

800

1000

1200

1400

2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F

INRC

rore




G h

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Growthtune

India has over 190 million radio sets reaching 99% of the population

New platforms to access radio like satellite radio, mobile phone radiosand internet radio growing fast

Revenues in 2007 - USD 0.08 bn

Expected revenues in 2010 - USD 0.26 bn, a CAGR of 32%

Ad spend on radio set to increase with more FM radios operational

R di i

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Radio goingglobal

Indian channels on international satellite radioservices like World Space

RM Radio, Jhankaar, Gandharv, NDTV etc

Numerous Indian stations reaching out to people ofIndian origin in foreign countries

RBC Radio (US), Asianet Radio (Gulf countries) 24 hour Tamil station in Singapore ( Oli 96.8 FM)

Numerous Indian stations in Trinidad, Fuji, Mauritius

Strong advertising support from local / MNC clients

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Advertising

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To create an awareness

Presentation & promotional

of ideas, goals or services

Marketing tool

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FORMS OF ADVERTISING

Television advertising

Mobile advertising

Covert advertising

Info advertising

Hoardings & pamphlets

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Prospects

The general aptitude of MBA graduates helpthem a long way in establishing a successfulcareer in media

Besides rendering administrative services theMBA graduates could shine as productionexecutives in audio visual media

The advertising wing of media too offer plentyof avenues for MBA Graduates

F ti f MBA d t i

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Functions of MBA graduates inMEDIA

Focusing on strategy implementation Acting as a change agent

Brokering opportunities for innovation andcollaboration

Ensuring communications Providing expertise and projects management

Employment

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EmploymentSurvey

Media has the highest employment opportunity 58% of additional manpower to be employed the

next 3 months

More opportunities in north India

M&E industry forms the most positive potentialemployer with net employment with outlook of58% for the second quarter of this year

Service sector has emerged as the moreoptimistic sector with media occupying about 8-

12% of the service sector

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Avenues for MBA graduates:

Magazine editor- with journalism background Advertising executive

Radio production executive

PRO

Media marketing executive Space selling Executives

Audio visual production

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Thank you

Pep 1 media

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