Media and Entertainment Sector in India Monthly Update September 2012
Top Story 74 percent FDI to be allowed in the broadcast sector The Indian Government has decided to raise the FDI cap to 74% in various services of the sector, except the TV news channels and FM radio where the cap of 26% will be applicable. The decision of the Cabinet Committee on Economic Affairs will apply to broadcast carriage services providers including Direct−to−Home, Headend−in−the−sky, Multi−Service Operators and cable TV in order to usher in uniformity. Till now, FDI of 49% was allowed in cable TV and DTH while it is 74% in HITS. Among other segments, 74% FDI is also applicable in Mobile TV which is considered to be an area of future growth. Out of the 74% decided, 49% will be through automatic route while the rest will be allowed through government route, thus signifying Foreign Investment Promotion Board clearance.
News Update General
BIG Disha reaches out to 0.6 mn rural villages and small towns Reliance Broadcast Network’s radio wing 92.7 BIG FM is all set to take the concern’s ambitious BIG Disha initiative to over 0.6 mn rural youth across India. BIG Disha is an education based rural marketing programme that offers critical career counsel to help empower small town youth in matters related to taking career decisions. The initiative is designed to benefit youth from 325 towns across 5 states of Madhya Pradesh, Uttar Pradesh, West Bengal, Bihar and Gujarat. Consumer goods company Procter and Gamble is partnering BIG FM in this programme. BIG Disha is slated to provide a fantastic platform to marketers from various industries to be a part of road shows, one on interaction and more while reaching out to relevant prospective customers across SECs in smaller towns in the country. This is particularly important as Reliance’s strategy is to leverage its extensive radio network in order to establish meaningful dialogues with its consumers as also provide engagement opportunities for brands associated with it. Media and Entertainment – Monthly Update
Digitization spurs investment activities in India Global media companies are upping their investments in India in the wake of digitization and the opening of the pay TV market. Sony is looking at an aggressive investment activity in its Indian television broadcasting company, Multi Screen Media as it seeks to launch niche channels and thereby expand into the regional language markets. Sony has also agreed to buy stake in regional broadcaster Maa TV. This is stemmed from the fact that digitization coupled with hike in FDI cap in carriage distribution services will help to attract foreign investors. IMAX looks to tap Indian film industry IMAX, the technology that is credited to make movie−watching a breathtaking experience is all set to tap into the Bollywood and South Indian film market. The technology has already earned a name in the West but very few multiplexes offer the facility in India. The concern has collaborated with multiplex giants PVR and Satyam as of now and is looking at opening 14 theaters in various cities as also provide content to Bollywood films. It is slated to make films in collaboration with Bollywood filmmakers and would elevate the visual quality of the movies. The theaters will hit the malls in Delhi, Chennai and Ahmedabad across the country. PurpleStream and Octoshape collaborate to develop PurpleCloud IPTV service Cloud‐based streaming technology provider Octoshape and video content delivery specialist PurpleStream are teaming up to deliver a broadband IPTV service named PurpleCloud. This new service is aimed at broadcasters in India and Asia. Octoshape will be chipping in its infinite HD‐M Federated Multicast Broadband TV platform and PurpleStream will be contributing core technology that incorporates adaptive bit rate optimization with single source multiple device (SSMD) delivery. When combined with Infinite HD‐M, the PurpleStream technology will adjust to the available bandwidth in order to render an optimized video viewing experience available on any internet enabled device with zero buffering. This service is offered to broadcasters and OTT operators and will deliver stable and dependable HD quality video streams to any device, any platform, in any geography at an affordable cost which is a fraction of the cost of the current delivery services. Sony Pix looks at tying up with major studios Sony Pix is focusing on collaborating with major studios and film distributors for gaining the rights of exclusive film premiers.
Media and Entertainment – Monthly Update
In addition to striking a deal with Sony Picture Entertainment for exclusive television premier rights to the channel in India, Sony Pix also have similar tie‐ups with other major Hollywood studios like MGM, Universal, Paramount Pictures, Lionsgate and Reliance Entertainment. The channel has been making considerable investments towards acquisition of brand new Hollywood films such as ‘The Adventures of Tintin: Secret of the Unicorn’, ‘Star Trek’, ‘Watchmen’, ‘GI Joe Rise Of Cobra’, ’SPY GAME’, ‘Surfs Up’ and ‘Mr Magorium’s Wonder Emporium’. Hollywood as a category was a niche segment earlier but the scenario has changed and the top 6 cities contribute to 60‐65% of the market for Hollywood movie channels. Currently, Sony Pix competes with stalwarts like HBO and Star Movies in the INR 3 bn English movie channel market. Airtel digital TV launches selfcare facility for its customers Airtel digital TV, the DTS services by Bharti Airtel, has launched an innovative self‐ care facility for its customers in India. The Airtel mobile customers in India can have this world’s first USSD‐based service innovation free of cost which will allow them to manage their Airtel digital TV with options of recharge, movie booking and top up additions and certain other services. The customers can access this facility by simply dialing a toll free number *121# from their mobile phones. Airtel digital TV has been hailed as the first to the DTH segment in India which operates the Set Top Box and TV set as well as several unique Interactive Applications and multi‐lingual EPG. Presently in addition to providing TV recorder, it has also added HD services to its portfolio.
News Update Expansion Plans
ZEE launches one and only Bengali movie channel ZEE Entertainment Enterprises Ltd, India’s leading conglomerate has launched India’s maiden 24−hour Bengali movie channel ‘Zee Bangla Cinema’. This particular channel promises to offer a mixed portfolio of blockbusters from the golden era directors and the best masterpieces of Satyajit Ray, Mrinal Sen, Ritwick Ghatak, Tarun Majumdar to the present day directors in the likes of Rituparno Ghosh, Raj Chakraborty and Anjan Dutta. The channel will be going live on 23rd of Septenber, 2012. It will also be a ready source of trivia from film news to music releases to muhuraats along with an exciting bag of blockbusters, parallel films and films from the golden era. Media and Entertainment – Monthly Update
Reliance adds F1 2012 game to its portfolio Reliance Home Video & Games, a player in the Toys and Games licensing and merchandising sector, has announced its launching of F1 2012 game in India. The game has been launched for the Xbox 360 video game and entertainment system for Microsoft, PlayStation 3 computer system and Windows PC. The game has been developed under Codemaster’s agreement with Formula One World Championship Limited and is slated to deliver an experience that will be true to the spirit of the game. Gamers can play the F1 2012 Demo and get a slice of it before its full retail release. Some of the chief features of the Formula One game include Champions Mode, Season Challenge, Young Drivers Test ant New USA Circuit for 2012. Reliance is deemed as having one of the strongest distribution networks in India and the love for Formula One in India is expected to get translated into sure formula of success for the gaming sector in the country.
News Update Financials Reliance MediaWorks to partown James Cameron’s firm Reliance MediaWorks has submitted a winning bid of INR 1.6 bn to part‐own some of the businesses of James Cameron’s Digital Domain Productions. The bid was submitted along with Galloping Horse, a leading firm in China engaged in film and TV financing, production, distribution, advertising and publishing. Reliance MediaWorks is slated to hold a 30% stake and Galloping Horse will be holding the rest. The two companies will be acquiring the assets that constitute the business of Digital Domain in feature films, advertising, visual effects, commercial production, studios in the US and Canada as also a co‐production stake in the feature film ‘Ender’s Game’. This sale is subject to the execution of an asset‐purchase agreement and an approval by the bankruptcy court in New York. The two firms have outbid the amount of INR 795 mn proposed by Searchlight Capital Partners.
Media and Entertainment – Monthly Update
Industry Expert Speak IMAX looks to tap Indian film industry – Don Savant, Managing Director, IMAX Corporation (Asia Pacific), "The multiplex market in India is growing as rapidly as it is growing in China. We plan to have 50 theatres in five years,"
Transactions (Jul 2012 – Sep 2012)
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
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
7Seas Entertainment Ltd. Aksh Optifibre Ltd.
Cinemax India Ltd.
Media and Entertainment – Monthly Update
Crest Animation Studios Ltd.
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
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 & Entertainment Law Forum 2012 Date: 6th October, 2012 Venue: Hotel JW Marriott City: Mumbai Organizer: LegalEra Website: http://www.lemediaforum2012.com/
Media and Entertainment – Monthly Update
Research on India (ROI) is a leading source for market research on various sectors in India that offers premium research content from worldwide publishers of market research reports. Contact us: W: https://www.researchonindia.com T: India (Toll Free): 1800 102 1133; International: +91 (33) 4027 6214/5 E: support@researchonindia.com Connect with Us Disclaimer: This monthly update is published for general information only based on press articles and company releases. Research on India has not independently verified any of information and is not responsible for any loss or damage arising from use of this document.
Media and Entertainment – Monthly Update