Media and Entertainment Sector in India Monthly Update August 2012
Top Story Videocon and DDB to usher ‘settopboxless’ LEDs Consumer durable concern Videocon Industries has collaborated with Digital Direct Broadcast (DDB) to provide a ‘set‐top‐box‐less’ technology. This technology will be available in all the new LEDs with sizes ranging between 32 inch and 58 inch. This partnership will mark completely new sets of standards in home entertainment experience as the TV operating system works to converge various features on a single platform. It will render reception of digital signals without a set‐top box. Additionally, its cloud computing ability will also help viewers work and save files on cloud as also allow browsing on social networking sites including Facebook, YouTube and Twitter. It can also convert 2D channels into that of 3D channels. This is being hailed as a revolutionary technology that will help transform the manner in which television has so far been watched.
News Update General
Big FM turns Supporting Partner for Delhi International Film Festival 2012 Big FM announced its collaboration as the Supporting Partner of the Delhi International Film Festival (DIFF) which will mark the city’s first ever International Film Festival. The festival is scheduled to run for a week at the Siri Fort Auditorium and NDMC Convention Centre from 21‐27 Dec, 2012. In order to mark the celebration of 100 years of Delhi being the capital of India as well as 100 years of Indian cinema, Big FM Delhi and DIFF have initiated this event as Delhi’s first true international film festival. As the supporting partner, Big FM will offer multifarious programming that will allow exclusive broadcast of the DIFF 2012 as also promote the grand event at various malls and cultural centers across the city. Big FM will also interview and host chat shows with different actors and personalities of the film fraternity. The DIFF will showcase films in ten different sections among which the best will be honoured with the Golden Minar and Silver Minar awards. This initiative will not only help in putting Delhi on the map of international film festivals, but also aid in adding another dimension to the city as an emerging quality film exhibition city by attracting films and film fraternity from all around the world. Media and Entertainment – Monthly Update
India’s first Direct to Network Cable to start this November Noida Software Technology Park Limited (NSTPL), a Jain TV group company, in collaboration with Motorola, Intelsat and KIT digital, is all set to launch India’s first Direct to Network (DTN) cable service named JAINHITS. Jainhits will be mobilizing the investment of over INR 15 bn over the period of five years in the Headend In The Sky (HITS) arena. This will be processed with the support from its partners to deliver affordable digital service to existing cable operators and MSOs and help them meet the Government’s National Digitization Mandate. In the first phase, JAINHITS will be offering 200 standard definition and high TV service, HBB TV and broadband. In its second phase, it will be scaled to offer 500 channels including 30 HD channels and value added services for e‐commerce, education, healthcare, financial services, gaming and on‐demand content. The company has a plan to evolve into a multi‐screen service within a year of its launch. Discovery Kids launched in India Discovery Kids is set to be launched in India after heavily researching and localizing amendment of children’s educational and adventure programming. The first of August is the stipulated time for the launch of the said channel. The network’s offerings include a combination of science, nature and history programming with globetrotting exploration, humor and mythology. Though the channel heads are thinking of going slow in building the network’s saturation, it does not mean that it will be devoid of healthy content. Animation is slated to be an essential element in the channel and it will be available in three languages like Hindi, Tamil and English. Discovery Kids is being launched in the country with 100% international content and the network managers are expecting to make it a 50:50 global‐to‐local content with the passage of time. Discovery Networks has had presence in India for about two decades, however its current launch of a dedicated children’s network in three languages brings forth an opportunity for content producers and media specialists by bringing the focus on the local landscape for cable or satellite kids’ media channel. Indian cable industry gets solutions from Exset Netherland‐based broadcast technology and solutions company Exset has launched ‘The India Page’ initiative especially for the Indian cable industry. Their chief aim is to allow the Indian sector to meet the challenges of digitization. The Indian initiative was announced at the conference held for cable operators titled ‘Digitisation is Monetisation’. Exset introduced various models that could be implemented by the cable operators during the digitization process across metro cities at the initial stages of digitization. The solution will also enable the operators to Media and Entertainment – Monthly Update
offer more value added services to the end customers. It also takes care of the revenue distribution among the local cable operators where the local operator presently does not have any share of revenue in the carriage and value added service. India’s PVR Cinemas inks IMAX commitment with theater agreement IMAX Corporation and PVR Ltd, have announced an agreement to install an IMAX theater system in Bangalore that is scheduled to open by March 2013. This deal follows an earlier agreement with PVR Cinemas dated March 2011 for four IMAX theaters. Under the statement of the agreement, PVR Cinemas will install an IMAX theater in multiplex in Bangalore’s Vega Mall. The exhibitor is also on the lookout of opening two of its previously contracted IMAX theaters in existing complexes in Bangalore and Mumbai in 2012 while the other two IMAX theaters are set to be opened in Delhi and Noida. Thus, this agreement is set to take the total of IMAX commitment of the exhibitor to a figure of five in India. As for IMAX, with this deal its total number of theaters opened or contracted to open in India rises to 14. As audiences across the country gets more passionate about cinema, worldwide known brand IMAX acts as a competitive advantage for PVR’s business as they strive towards bringing more audiences in Bangalore to experience IMAX. As for IMAX, they are excited to expand their partnership with PVR who remains the second largest exhibitor for them. TiVUS announces its first contract in India TiVUS, Inc., a leading US hotel technology IPTV concern, announced its maiden contract in the Asia Pacific region with Neesa Leisure Ltd (NLL), which owns and operates hotel properties in India under the name “CAMBAY Hotels & Resorts”. Tivus USA, through a joint venture with Tivus Smartv India Pvt Ltd, has been working with NLL for about a year in terms of negotiating this contract. TSIL is slated to provide financing for the installations in 10 hotels that are served under this contract. This installation is slated to begin in the month of September with the required management already hired by TSIL for the purpose of Asia deployment. Red FM and GiMA come together again India’s largest radio network, 93.5 Red FM has partnered with the Chevrolet Global Indian Music Academy (GiMA) Awards for the third consecutive year. GiMA Awards is the biggest annual celebration of India Music and it recognizes talent across various genres of Indian music such as Bollywood, Classical, Ghazal, Devotional, Folk, Fusion, Carnatic and Contemporary. Red FM, known for its innovative content, as a partner, will help listeners in India engage with GiMA in a unique manner. This will mark Red Fm as a partner for the third edition of the GiMA. Media and Entertainment – Monthly Update
BIGFLIX launches Windows Phone App BIGFLIX.com, India’s largest movie on demand service providers, will offer BIGFLIX App on Windows Phone which will enable users across the world to have their daily dose of entertainment with 1000+ movies on the go. This will make BIOGFLIX the first Indian video‐on‐demand app available on Windows Phone and will be featuring full length movies across all major Indian languages including Hindi, Tamil, Telugu, Malayalam and others in DVD like quality. It can be downloaded free of cost by Windows Phone users by going to the Windows Marketplace and simply clicking on the app. Users can further subscribe to watch full movies and the same logins will also be used to work on PCs and laptops, Tablets and smartphones. Dish TV launches Dish+ Dish TV, a leading name in India’s direct to home (DTH) services has launched the Dish+, India’s first standard definition box with unlimited recording facility. After the VCR, there was no recording device available to consumers which Dish+ aims to fulfill. Priced at INR 1,690, the product comes with a 4GB USB drive free as a promotional offer. It is being launched in 42 cities of Phase I and Phase II of digitization and is slated to be a clear differentiator from the rest as a better alternative for all viewers who will be shifting form analog to that of digital. One unique feature about this product is that it is compatible with any USB device and enables a plug‐and‐play operation using an existing USB stick/HDD. It also offers an advantage of recording on standard definition and entails the benefits of traditional DVR‐like recording and playing back of programs, pausing or rewinding live TV and others. India’s first 3D animation released on Friday Krishna and Kans, hailed as India’s frist stereoscopic animated feature film was released in a global launch on 3rd August. The film is positioned in the family entertainment category and covers a ten year span of Krishna’s life. It depicts the period in Krishna’s life beginning with pre‐birth and ending with the destruction of Kans when he was ten years old. The two‐hour film has taken a mammoth five years to be made and boasts of having 1,200 artistes working in it. The film got released in over 300 3D theaters, 250 2D theaters and over 40 schools in India as well as in Australia, New Zealand and Malaysia. Further, a release in the UK and US is also in the pipeline within a fortnight. Eminent personalities for the film fraternity have lent their voices in the film and include names like Om Puri (Kans), Juhi Chawla (mother Yashoda), Prachi Save (Krishna) along with others including
Media and Entertainment – Monthly Update
Manoj Bajpai, Anupam Kher, AK Hangal, Sachin and Supriya Pilgaonkar and Mukesh Khanna. The movie marks the maiden foray by an Indian venture to foray into the 3D animation genre that sets a whole new path for other to follow in years to come. Panel suggests increase of FDI to 49% in print media A government‐appointed panel has suggested that foreign direct investment (FDI) limit for print media should be enhanced from the present 26% to that of 49%. This is slated to ease fears of foreign content flooding newspapers. The information and broadcasting ministry (I&B) panel, a sectoral innovation council, is headed by former I&B secretary Asha Swarup. The council’s report stated that though the sector is not facing any immediate threat yet enhancing FDI limit to 49% can emerge as a prospective growth driver. Apart from the print media, the council has also given certain recommendations for varied sectors in the likes of media education, broadcast, radio and advertising.
News Update Expansion Plans
MTV India to be launched in the Middle East US media giant Viacom is looking at launching MTV India in the Middle East this month. This launch is a result of the joint venture between IndiaCast, Indian broadcaster TV18 and Viacom. Viacom happens to be the US broadcaster behind The Walt Disney Company, Time Warner and News Corporation. The responsibility of regional advertising sales for MTV India is entrusted to IndiaCast’s Dubai office. The channel will be available on Pehla branded packs across DTH, Cable, IPTV and SMATV across majority of the Middle East countries. Earlier, preceding the MTV launch was that of the September 2010 launch of Hindi entertainment channel COLORS. MTV India is predominantly aimed at the audience aged 15 to 34 and showcases a collection of music programming, talk shows, fashion and style shows, Bollywood‐style comedy shows and adventure shows. With this launch, the US media giant is looking at tapping the lucrative Indian expatriate market in the Middle East. Media and Entertainment – Monthly Update
Sony all set to launch six new regional channels Sony Entertainment Television (SET) India is planning to add six new regional channels to its offering portfolio in the next few years. The concern is presently focusing on the regional space as an initiative towards expansion. Sony runs a bouquet of channels such as Sony MAX, SET MAX, Sony Pix and AXN and is quite popular across India. However, they have not really focused on the regional domain. Sony has stated that it has been growing at 35 percent annually in the Indian television market and now is targeting to tap the regional category by expanding in the said lines of operation. PVR sets up a 5screen multiplex in Nagpur PVR has launched a five‐screen multiplex at the Express Mall near Gandhi Lake in Nagpur. The multiplex is spread across an area of 50,000 sq ft and boasts of a capacity of 1234 seats. It also promises to provide digital movie experience to the cinegoers of the city at prices varying between INR 70‐180. This launch will take the total number of screens of PVR to 39 screens and 8 multiplexes in five chief cities of Maharashtra including four in Mumbai, one in Latur, one in Aurangabad and one in Nanded. Another landmark achieved with this launch is that PVR now boasts of having a footprint of 184 screens in 42 cinemas in 13 states and 25 cities across India. As the demand in smaller towns grows steadily over the years, multiplex majors are looking at it as an opportunity to capitalize on this growing demand and expanding their footprints in tier II and III cities.
News Update Financials Singapore PE fund set to collaborate with PVR Singapore‐based private equity (PE) fund L Capital Eco Ltd has announced that it has signed agreements to invest INR 1.08 bn in PVR Ltd. This collaboration would entail a joint venture with the Indian operator of movie multiplexes. L Capital will be investing INR 5,770 mn under the preferential allotment route in PVR for a 10% fully diluted stake. It will be subscribing to 2,885,000 equity shares in PVR at INR 200 each. Further, the fund will also be investing INR 0.5 bn to set up the joint venture with PVR, wherein L Capital’s holding in the venture will be 44% with PVR taking 51% and the remaining going towards management stock options. PVR is looking at building and expanding its core cinema exhibition business as also expand its in‐mall entertainment portfolio.
Media and Entertainment – Monthly Update
Industry Expert Speak Videocon and DDB to usher ‘settopboxless’ LEDs – Anirudh Dhoot, Director, Videocon, "We believe that this revolutionary technology will transform the way consumers watch television. Providing a set‐top box less platform to the Indian consumers and enlivening them with true to life audio and video capabilities separates this technology from other players in the market,"
Transactions (Jun 2012 – Aug 2012)
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
23rd Aug 2012
Bookmyshow.com
Network18 Group
1000
20%
In process
M&A
9th Aug 2012
Das Star Venture
SideFX Entertainme nt
55
N.A.
Completed
VC Funding
26th Jun 2012
Sony Pictures Television
Multi Screen Media Pvt. Ltd.
15,120
32%
In process
M&A
Annual Financial Results – Revenue (INR mn) Companies
FY ‘09
FY ‘10
FY ‘11
FY ‘12
3M India Ltd.
8,257./8
9,109.5*
11,893.2
14,103.7
114.1
71.0
136.3
206.5
1,600.1
1,341.7
1,309.3
2,691.2
Bharat Sanchar Nigam Ltd.
301,964.2
279,134.4
270,447.1
NA
Bharti Airtel Ltd.
369,615.5
418,472.0
594,672.0
714,508.0
7Seas Entertainment Ltd. Aksh Optifibre Ltd.
Media and Entertainment – Monthly Update
Cinemax India Ltd.
1,446.1
1,704.5
1,917.0
2,768.9
571.4
635.5
418.4
NA
DEN Networks Ltd.
7,121.9
9,103.4
10,221.1
11,284.9
Dish TV India Ltd.
7,381.1
10,850.0
14,366.6
NA
DQ Entertainment International Ltd.
1,500.9
1,754.7
2,078.5
2,327.5
Eros International Media Ltd.
6,265.3
6,408.8
7,109.5
9,438.8
Fame India Ltd.
1,355.6
1,697.0
1,669.0
NA
Hathway Cable & Datacom Ltd.
6,630.2
7,331.8
8,826.1
NA
Inox Leisure Ltd.
2,259.0
2,536.5
3,703.2
NA
Mahanagar Telephone Nigam Ltd.
41,837.0
35,513.0
36,778.0
NA
Padmalaya Telefilms Ltd.
18.1
18.3
22.6
NA
Pentamedia Graphics Ltd.
131.6
540.3
259.7
NA
Prime Focus Ltd.
3,543.7
4,532.5
5,143.4
NA
PVR Ltd.
3,521.1
3,341.3
4,572.9
5,087.0
225,245.4
214,963.8
224,303.5
187,160.0
Reliance Mediaworks Ltd.
6,624.0
7,272.0
7,920.7
7,987.8
Tata Communications Ltd.
100,718.9
110,255.6
119,319.9
141,960.5
6,065.5
6,640.5
9,295.1
NA
104,855.5
118,830.7*
NA
NA
3,096.3
2,726.5
3,059.5
3,323.6
Crest Animation Studios Ltd.
Reliance Communications Ltd.
UTV Software Communications Ltd. Videocon Industries Ltd. Wire and Wireless India Ltd.
*Change in financial year
Media and Entertainment – Monthly Update
Annual Financial Results – Income (INR mn) Companies
FY ‘09
FY ‘10
FY ‘11
FY ‘12
3M India Ltd.
649.5
801.6*
988.1
647.7
7Seas Entertainment Ltd.
11.6
6.3
12.7
24.8
Aksh Optifibre Ltd.
‐320.8
‐131.4
‐489.8
196.1
Bharat Sanchar Nigam Ltd.
5,748.5
‐18,226.5
‐63,842.6
NA
Bharti Airtel Ltd.
84,699.1
89,768.0
60,467.0
42,594.0
Cinemax India Ltd.
110.5
169.7
54.5
35.1
Crest Animation Studios Ltd.
‐134.2
2.58
‐1,713.1
NA
DEN Networks Ltd.
‐151.1
301.1
375.3
145.7
Dish TV India Ltd.
‐4,807.0
‐2,622.0
‐1,919.8
NA
DQ Entertainment International Ltd.
161.2
266.7
278.6
413.2
Eros International Media Ltd.
733.3
821.1
1,172.3
1,478.4
Fame India Ltd.
34.4
‐63.3
9.0
NA
Hathway Cable & Datacom Ltd.
‐916.1
‐801.0
‐312.7
NA
Inox Leisure Ltd.
243.4
260.6
50.0
NA
‐1,430.0
‐25,553.0
‐32,895.0
NA
Padmalaya Telefilms Ltd.
‐20.4
‐4.9
‐23.1
NA
Pentamedia Graphics Ltd.
31.2
157.0
55.7
NA
Prime Focus Ltd.
145.8
334.2
760.9
NA
PVR Ltd.
87.1
13.5
81.8
254.2
Mahanagar Telephone Nigam Ltd.
Media and Entertainment – Monthly Update
Reliance Communications Ltd.
60,449.3
46,550.0
13,456.5
9,280.0
Reliance Mediaworks Ltd.
‐513.8
‐1,432.1
‐3,288.6
‐5,180.2
Tata Communications Ltd.
3,158.0
‐5,977.4
‐7,769.0
‐7,946.5
356.3
533.3
1,354.8
NA
Videocon Industries Ltd.
5,151.3
‐2,749.5*
NA
NA
Wire and Wireless India Ltd.
‐962.3
‐1,757.9
‐624.3
‐913.4
UTV Software Communications Ltd.
*Change in financial year
Quarterly Financial Results – Revenue (INR mn) Companies
JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
3M India Ltd.
3,277.5
3,118.5
4,185.1
4,078.8
7Seas Entertainment Ltd.
56.3
NA
NA
69.1
Aksh Optifibre Ltd.
653.6
643.9
766.8
630.5
152,311.0
184,767.0
187,294.0
193,501.0
2,565.6
2,782.2
3,216.0
1,948.9
629.8
637.4
725.1
309.3
Eros International Media Ltd.
1,748.0
4,084.2
2,068.4
2,570.3
Prime Focus Ltd.
2,025.5
2,127.5
1,891.3
1,882.1
PVR Ltd.
1,386.4
1,389.5
1,176.9
1,773.6
Reliance Communications Ltd.
50,402.0
50,521.0
53,496.0
53,192.0
Tata Communications Ltd.
33,736.10
36,041.00
37,537.30
41,073.90
Bharti Airtel Ltd. DEN Networks Ltd. DQ Entertainment International Ltd.
Media and Entertainment – Monthly Update
Wire and Wireless India Ltd. 3M India Ltd.
893.0
871.7
865.2
1,096.6
3,277.5
3,118.5
4,185.1
4,078.8
Quarterly Financial Results – Income (INR mn) Companies
JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
3M India Ltd.
118.8
22.9
217.7
167.1
7Seas Entertainment Ltd.
8.2
NA
NA
11.8
Aksh Optifibre Ltd.
49.5
65.2
80.2
105.2
10,270.0
10,113.0
10,059.0
7,622.0
DEN Networks Ltd.
44.3
35.3
47.6
122.3
Eros International Media Ltd.
273.5
690.9
297.1
314.1
Prime Focus Ltd.
264.3
262.9
209.2
209.8
PVR Ltd.
142.0
90.0
‐132.4
75.6
‐1,652.0
‐1,530.6
8,649.1
‐1,428.6
‐145.5
‐140.2
‐243.4
‐10.6
Bharti Airtel Ltd.
Tata Communications Ltd. Wire and Wireless India Ltd.
Events Calendar Media, Advertising and Entertainment Legal Summit 2012 Date: 27th September, 2012 Venue: Hotel Le Meridien City: New Delhi Organizer: Lex Witness Website: http://www.maels2012.com/
Media and Entertainment – Monthly Update
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Media and Entertainment – Monthly Update