Media and Entertainment Sector in India Monthly Update October 2012
Top Story India set to become teleport hub The Information and Broadcasting Ministry is slated to have consultations with the industry to fulfill its objective of transforming India into a teleport hub for both up‐ linking and down‐linking satellite television channels. The Ministry will be working out modalities, challenges and road map for this purpose. The government’s recent decision to allow 74% FDI in DTH, IPTV and Mobile TV works in this direction. Additionally, the auction process for Phase III in FM Radio is aimed at increasing the number of radio stations by 839 in over 290 towns and cities. Certain steps have also been undertaken in order to revamp All India Radio’s FM Radio to enhance its reach and content. Another step being taken is that of restructuring national broadcasting by enabling Prasar Bharti to recruit fresh talent and thereby restructuring its financial flows. Further, the proposed National Film Heritage Mission (NFHM) has also been set up. In order to give an impetus to animation, gaming and VFX industry, the government has chalked plans to set up a Centre of Excellence that would produce technical professionals. The Ministry is also considering using social media and may launch its own channel on the lines of YouTube. One advantage of India becoming a teleport hub will be the fact of attracting accelerated flow of foreign direct investment and latest technology that can help to move up in the value chain in content generation
News Update General
Dish TV announces aggressive strategy Dish TV, India’s leading direct‐to‐home services provider, has announced an aggressive strategy in order to grab 35% market share in the country’s DTH market. It has launched a price plan to offer 70 channels (mostly free‐to‐air) free to its subscribers under the basic subscription plan. The subscription plan is applicable in the four metros of New Delhi, Mumbai, Kolkata and Chennai. The four metros are slated to go digital by Oct 31, 2012. Subscribers opting for this plan will be required to recharge at least twice in a year with the basic package. The TRAI has recommended providing the basic tier at INR 100 to all Multi‐ System Operators. The company is expecting around 7 mn homes to get digitized in these four cities and with this it is expecting that around 60 percent of the consumers will be making a shift to the DTH technology. This initiative is launched with the Media and Entertainment – Monthly Update
objective to tap 35% market share and is bound to launch a price war in this segment which is slated to be fruitful for the DTH uptake in the country. Dish TV offers live intrain services Dish TV, Indian direct‐to‐home concern is now offering live TV on luxury train Maharaja Express. The company is using Gilat mobile satellite antennas to foster live TV viewing on the move and every seat has a dedicated set‐top‐box. Dish TV is a pioneer and market leader of the DTH industry and its latest offering is to take TV entertainment to a completely unprecedented level by bringing live TV experience to Maharaja Express, one of the top 25 luxury trains in the world. Dish TV has launched its mobile train technology on the Palace on Wheels, the Royal Rajasthan on Wheels and two other luxury trains back in 2010 and continues to provide latest technology through its constant innovation to its consumers. Tata Sky all set to host new regional channels The launch of India’s advanced communication satellite GSAT – 10 has provided a boost to Tata Sky, direct‐to‐home (DTH) provider. Tata Sky has so far carried 200 channels on the Insat 4A satellite with 12 transponders. The additional transponders which are expected to number 8‐10 on the new satellite is said to be able to carry 100 to 180 channels. Its ability to carry channel is further dependent on the compression rates at which the channels are beamed back since one transponder can carry 20 standard definition channels or 10‐11 high definition channels. The immediate benefit will be the improved number of channels for Tamil Nadu and Kerala markets on the Tata Sky platform. Additionally, as the concern is looking at accommodating a spate of Tamil and Malayalam channels along with a host of other regional channels, it would not be a problem to realign the existing customers’ dish antennae to a new single direction. This is because the new satellite beam will be in the same direction (83 degree east) as its INSAT ‐4A feed. Presently, with the new satellite on, Tata Sky will only have to invest in setting up an up‐linking facility on ground. India to receive a licensed format of People’s Choice Awards The People’s Choice Awards is all set to spread outside North America for the first time in its 37‐year old history through a local version being planned for India. People’s Choice Awards franchise owner Procter & Gamble Entertainment has licensed the format to Bulldog Media and Entertainment in India. Both the companies have worked together in the past wherein Bulldog licensed the game “Are You Smarter Than a 5th Grader” from Burnett and produced an Indian version “Kya aap paanchvi pass se tez hain?” hosted by Bollywood star Shah Rukh Khan. The People’s Choice Awards will predominantly focus on India’s national language Hindi with Media and Entertainment – Monthly Update
Bulldog ready top explore the option of other language awards in the ensuing years. Former MTV India video jockey and current Bollywood actor Ayushmann Khurrana will be hosting the forthcoming Indian version of the People’s Choice Awards dated Oct 27, 2012. Google eyes South Indian movie market In lines with collaborations with leading Bollywood studios like Yash Raj Films and Eros International, Google is now looking at South Indian movie market as a prospective domain of business interest. Google is in talks with several filmmakers and producers in South to explore varied ways to monetize their content on YouTube. Since the Indian diaspora is spread across the global platform and most films not being released in nearby cinema halls, YouTube is slated to come in handy. Filmmakers can now reach out to newer markets and audience across the globe. Further, with a growing number of people using this platform as a medium to showcase their talent, a good content is bound to bring in more audience. Indian PC gamers get digital download service from Game4u Game4u, a retailer of game hardware and software, has announced its digital download service for PC gamers in India. It will be available under the ‘downloads4u’ category on the gaming portal of the official game4u website. This new service is slated to make Game4u the first Indian electronic retailer to feature a digital distribution service in India. The platform will enable users to download as many as 300+ games directly to one’s PC. It will be housing every kind of games ranging from favourite catalogue games that are impossible to find in stores to that of the most recent ones. The price range will vary across price points between INR 99 to 2,499 and will be using local payment options. Further, this service will enable gamers to get their most anticipated games almost instantly on launch. The service providers are looking at expanding its offering portfolio to 1,000+ games by getting all leading publishers on the platform. Ficci to bring forth conclave in Chennai Ficci announces the 4th edition of the annual Media and Entertainment Business Conclave (MEBC) which is looking at commemorating the glorious and landmark occasion of 100 years of Indian cinema. MEBC is deemed to be the powerhouse of knowledge, ideas and best practices with informative sessions by industry stalwarts on subjects that are related to the entire canvas of the media and entertainment sector. The past events of Ficci MEBC have covered various streams including films, television, music, animation, gaming and technology. MEBC 2012 will also bring focused sessions on digitization for the broadcast industry. Additionally it will also look at celebrating 100 years of Indian Media and Entertainment – Monthly Update
cinema with luminaries like Kamal Haasan, Mohanlal, Dileep, Jairam, Mamoothy and others. The event will be attended by over 600 delegates including speakers, invitees, government officials, media and diplomats. CAA and KWAN announce their joint venture Creative Artists Agency (CAA) and India‐based talent agency KWAN Entertainment & Marketing Solutions have announced about their joint venture to represent local talent in India. CAA KWAN will be based in Mumbai and will primarily focus in areas revolving around film and television, music, commercial endorsements, sports consulting, licensing and merchandising, live events and business development. In addition to Mumbai, this venture will be having offices in Delhi, Bangalore and Hyderabad as well. It will be jointly led by CAA’s David Taghioff and Caleb Franklin and KWAN' chief executive/managing director Anirban Das Blah and COO Indranil "Niel" Blah. This is deemed to be a perfect amalgamation of KWAN’s deep network of relationships, local market knowledge and collaborative business philosophy which would help in furthering CAA’s existing business in India by providing their clients with more opportunities.
News Update Expansion Plans
Nickelodeon launches animated show Nickelodeon is all geared to launch a brand new comedy show ‘Motu Patlu’ in October. This animated show is targetted at all age groups and forms a part of Nickeledeon’s attempt in offering differentiated Indian content to kids. The show with 3D animation by Maya Digital Studios also features a title song that works to bring together the musical triumvirate Gulzar and Sandesh Shandilya. The channel will be launching the first season of the show comprising 13 episodes followed by the second season. The channel has adopted a 360 degree marketing campaign that would be covering ATL and BTL media vehicles. The show is slated to premier on October 16 exclusively on Nickeledeon. Zee Learn launches India’s maiden edutainment channel Zee Group, a leading name in the Indian media, has taken yet another initiative in the television industry with its launching of the country’s first edutainment television channel for kids. Media and Entertainment – Monthly Update
ZeeQ, the new channel launched by Zee Learn, a BSE‐listed educational division of the group, will look to cater to the education and entertainment needs of children aged between 4‐14 years. Its broadcast operations will be managed by Zee Entertainment and Enterprises Ltd and the content and channel management will be looked after by Zee Learn. This 24‐hour paid‐for‐channel will be offered across various direct‐to‐ home and digital cable platforms from 5th of November. The programming content has been chalked out after taking into consideration Zee Learn’s experiences in running a chain of pre‐schools and under Kidzee and K‐12 under Mount Litera School. The ratio of Hindi to English language programming on the channel will be 70:30. The representatives of the Zee Group stated that the new channel is in line with the group’s objective of improving human capital. Big RTL Thrill set to be launched this November Big RTL Thrill, the joint venture between Reliance Broadcast Network and European entertainment network RTL Group will be launched on 5th of November. Big RTL Thrill is positioned as an action entertainment channel and is primarily targetted at the male audience which has the tagline of ‘Action ka Baap’ (Ultimate Action Destination). Initially, the channel will go on air in Uttar Pradesh and will feature international content dubbed in Hindi. This will soon be followed by expansion to other Hindi‐speaking markets and SAARC region. The content of this channel will include reality shows, action series, wrestling, extreme sports, game shows and movies. It will be marketed through a multi‐media campaign across television, radio, out of home, on ground, print and digital. Uttar Pradesh was a natural choice for the launch of the channel as the region is home to the country’s largest male population and second largest economic engine. RBNL’s Big International looks at tapping the US market Reliance Broadcast Network’s (RBNL) hybrid channel is all set to tap the American market where several Indian broadcasters have already made an entry. After its launch in Canada this June, Big Magic International has launched in the United States. RBNL has signed with Dish Network and will be available both on DTH and IPTV. Other than that, it will also be available as an a la carte channel by optimizing Reliance Group synergies with Big Flix Video on Demand. It is looking at subscription and advertisement sales in the US market and has appointed Mediamorphosis LLC as its ‘exclusive’ advertising agency in the US.
Media and Entertainment – Monthly Update
News Update Financials Dish TV to invest in Sri Lankan subsidiary Dish TV, India’s leading direct‐to‐home (DTH) concern is looking at expanding in neighbourhood countries. The company is all set to invest INR 700 mn in its Sri Lankan subsidiary, Dish TV Lanka. Dish TV Lanka is a joint venture company in which Dish TV holds 70% stake while the local partner Satnet Pvt Ltd holds the rest 30%. Dish TV has also received the shareholders’ approval to invest the amount on this venture. Though it has not created any broadcasting center or satellite link facility, yet the company is planning to get into the Sri Lankan DTH market at some stage as the ARPUs (average revenue per user) are much higher. A special resolution under the Section 372A of the Companies Act, 1956 to make loans or investments or even give guarantee or provide any kind of security in order to provide up to INR 700 mn in Dish TV Lanka (Private) Limited has been approved by the shareholders in this regard. Though the DTH market in Sri Lanka is much smaller compared to India, yet the ARPU in the country is close to INR 450 while in India it is INR 200. This has emerged as an attractive proposition for Dish TV who is eyeing an expansion in the Sri Lankan territory. Industry Expert Speak Google eyes South Indian movie market – Gautam Anand, Director, Content Partnerships, Google AsiaPacific region, “Mostly it’s an issue of access. The Indian diaspora is spread all over the world and most films don’t release in their nearest cinema hall. We are confident that with platforms like YouTube, filmmakers can reach out to newer markets and audience across the globe. Besides, a lot of more people have begun using this medium to showcase their talent. There’s no guarantee that every video posted on YouTube gets good number hits, but if the content is good, there’ll always be an audience.”
Transactions (Aug 2012 – Oct 2012)
Media and Entertainment – Monthly Update
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
30th Oct 2012
Reliance Media Fund
Cinemax India
12.2
N.A.
Completed
M&A
26th Sep 2012
Gradiente Infotainment
Hindi Entertainme nt Channels
500
N.A.
Expected
M&A
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
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
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
7Seas Entertainment Ltd. Aksh Optifibre Ltd.
Cinemax India Ltd. Crest Animation Studios Ltd.
Media and Entertainment – Monthly Update
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
Reliance Communications Ltd.
UTV Software Communications Ltd. Videocon Industries Ltd. Wire and Wireless India Ltd.
*Change in financial year
Annual Financial Results – Income (INR mn) Media and Entertainment – Monthly Update
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
60,449.3
46,550.0
13,456.5
9,280.0
Mahanagar Telephone Nigam Ltd.
Reliance Communications Ltd.
Media and Entertainment – Monthly Update
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
893.0
871.7
865.2
1,096.6
Bharti Airtel Ltd. DEN Networks Ltd. DQ Entertainment International Ltd.
Wire and Wireless India Ltd.
Media and Entertainment – Monthly Update
3M India Ltd.
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 FICCI – Media Entertainment & Business Conclave Date: 4th December, 2012 City: Kolkata Organizer: FICCI Website: http://www.ficci‐frames.com/events.htm
Media and Entertainment – Monthly Update
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Media and Entertainment – Monthly Update