MEDIA & ENTERTAINMENT

Ms.Vidhya Srinivas

WHAT IS MEDIA

A Medium or channel to carry the intended advertising message to target the audience.
MEDIA MEDIA VEHICLES

MEDIA KEY DRIVERS

Content

Television Print Films

Regulations Consumerism Advertising spend Pricing Technology

TYPES OF MEDIA
Traditional Media

New Age Media

Print
Newspapers Magazines Trade journals Direct mail

Internet & related platforms

Audio/ Visual
Radio TV Film Sponsorships of events Cassettes-audio & video Out doors and Trade fairs

Social network site Email Blogs Mobile phone/mobile internet Mobile TV Podcasts Company websites/webcast In-store TV

WOM/Stimulated Buzz In programme brand placements

PRINT MEDIA

James Augustus Hickey is considered as the "father of Indian press" as he started the first Indian newspaper from Calcutta, the Calcutta General Advertise or the Bengal Gazette in January, 1780. In 1789, the first newspaper from Bombay, the Bombay Herald appeared, followed by the Bombay Courier next year (this newspaper was later amalgamated with the Times of India in 1861). The country consumed 99 million newspaper copies as of 2007making it the second largest market in the world for newspapers. According to Indian Readership Survey(IRS) 2009, India is the second largest print market in the world with readership base of 350 million.

PRINT MEDIA
The structure of the print media is characterized by a high level of fragmentation and regional diversity. 62,000 newspapers are printed out of which 92% are in Hindi and other in vernacular languages KPMG analysis. 92% newspapers and 8 % Magazines

PROJECTED GROWTH OF INDIAN MEDIA INDUSTRY IN 2009-14

2009 newspaper % change Magazine % change Total 161.5 18.5 143.0 2010 154.6 8.2 20.4 9.5 175.0 2011 163.0 5.5 23.0 13.6 186.0 2012 173.0 6.2 26.0 12.1 199.0 2013 187.0 8.2 29.0 15.2 213.0 2014 198.5 5.9 32.0 11.6 230.5 7.4 11.5 % CAGR

TOP 10 SECTORS CONTRIBUTING TO THE PRINT ADS IN 2009

Setors Education Services Banking/Finance/ Investments Auto Retail Durables Personal Accessories % share 15 12 9 7 6 4 4

Personal health care

Corporate Brand Image Textiles/ clothing

3
2 2

OUTLOOK OF THE PRINT SECTOR

% growth 2005-09 Advertising 4.6 21010 2011P 2012P 2013P 2014P %CAGR( 2010-14) 11.6

114

127

141

158

176

circulation

13.0

76

80

84

88

92

5.0

Total ind size

1.

190

206

225

246

269

9.1

newspapers

1.9

175

191

208

227

248

9.1

magazines

1.9

14

18

17

19

20

9.1

1.9

190

206

225

246

269

9.1

TRENDS IN THE PRINT MEDIA

Online versions & mobile versions Revenue Generation from Advertisements through online version of Print Proper segmentation of the print product Print for all Genres

CONSIDERATIONS IN MEDIA SELECTION

Whom are you trying to reach : understanding the characteristics of TG, buying habit, lifestyle, aspirations, reading habits, pastimes. What are your communication objectives? DAGMAR Define advertising Goals for measured Advertising Results

ASSESSING MEDIA CHARACTERISTICS

Exposure Reach Frequency Weighing reach and frequency against costs Measuring TV viewership : Television Audience Measurement(TAM) and they do it with the help of TRPs Media Class source effect, and Media Vehicle Source effect

THE MEDIA SCHEDULE

Media Category : specifies the type of media selected television, magazines. Media Vehicles : TOI, Mint etc. Star TV, Colors Programme choice : KBC, Emotional Atyachaar Number of insertions : the number of planned insertions in each media vehicles will be specified. The details : contains the major characteristics of the advertisement other than copy and artwork. Size specifications, location, timings etc. Timings : Campaign Approach continuous approach, pulsing approach and flighting approach.

MARKET OVERVIEW

The entertainment industry in India is estimated at about US$ 9.4 billion (INR 431.4 billion) in revenues in CY2010, which is expected to grow at a rate of 14.1 per cent to reach revenues of US$ 10.7 billion (INR 492.4 billion) in 2011.

ENTERTAINMENT OVERVIEW
TV - India is home to a very diverse TV market, characterised by multiple genres and languages and more than 500 channels vying for viewer attention. The country is home to 134 million TV households. A lot of foreign investments are flowing into it. Radio - The FM radio segment is one of the fastestgrowing entertainment segments in India. Revenues in this segment have almost doubled since 2006. There are close to 248 FM radio stations in India.

ENTERTAINMENT OVERVIEW
Films - India is the largest producers of films in the world, with more than 1,000 films released annually. In 2008, close to 3.3 billion movie tickets were sold the highest number for any country. Music - Film-based music dominates music sales in India. As in most global markets, digital sales of music are becoming the norm in India. Music on internet and through mobile phones is the emerging business model for music companies New Media - Increasing broadband penetration is expected to attract more content online. As the secondlargest mobile telephony market in the world, India has provided a new platform for content delivery.

SEGMENT WISE BREAKUP OF E&M INDUSTRY 2009

%
Television 46 Print 28 Films 16 Radio 2 online 1 OOH 2 Animation Gaming and VFX 4 Music 1

TELEVISION

In 2010, the industry is estimated to generate revenues worth US$ 6.2 billion (INR 298 billion), of which around 65 per cent was contributed by subscription, while the rest came from advertising. India is home to 134 million TV households, of which 90 million are served by cable and satellite TV and is expected to reach 100 million in 2010. As of March 2010, as many as 503 TV channels were registered with the Ministry of Information and Broadcasting (MIB) and more channels are being added across genres. The adoption of digital distribution platforms direct-to-home (DTH) and digital cable is helping TV distribution become more organised. From about two million digital TV households in 2006, the platform currently caters to about 15 to 17 million digital subscribers. Regional TV is becoming prominent and several regional-language TV networks have emerged to leverage the potential of regional markets, across key genres.

Source: IMaCS Analysis, FICCI-PWC Frames 2006 Report

PROJECTED SIZE OF INDIAN TV INDUSTRY

Series 1
450 400
327 250 427

350
INR Billion 300 250 200
148

170

203

Series 1

150
100 50 0 2006 2007 2008 2009 2010 2011

Source: IMaCS Analysis, FICCI-PWC Frames 2006 Report

INDIAN TELEVISION INDUSTRY REVENUE BREAKUP

%

5%

37%

58%

TV subscription TV advertising TV Software

Source: TAM Media Research 2008

GENRE WISE TV CONSUMPTION

%
Mass Entertainment Hindi Films Channel 1 5 2 4 5 39 English Entertainment 33 8 4 Music News sports Wild Life, Science others Kids Channel Regional Channel

SHARE OF CHANNEL GENRES AT ALL INDIA LEVEL

Genre 2004 2005 2006 2007 2008 Jan to Aug 09 0.4 8.0 0.1 0.8 0.4 26.2 12.6 3.7

Bus News Cable Eng Ent Eng Movie Eng News Hindi GEC Hindi Movies Hindi News

0.1 11.4 0.7 1.4 0.3 24.2 10.0 3.7

0.4 10.6 0.5 1.1 0.3 23.6 9.9 4.2

0.5 9.9 0.4 1.0 0.5 23.0 10.5 4.5

0.5 10.6 0.3 1.0 0.7 22.6 10.5 4.8

0.5 8.7 0.2 0.8 0.6 23.2 11.6 4.8

SHARE OF CHANNEL GENRES AT ALL INDIA LEVEL

Genre 2004 2005 1.0 2006 1.0 2007 1.0 2008 0.8 Jan to Aug 09 1.1 Infotainment 1.2

Kids
Music

2.7
1.7

4.0
1.6

5.8
1.8

5.9
2.1

5.4
2.5

5.9
2.4

Reg GEC
Reg Mov Reg music Reg news Religious Sports Others

28.8
4.6 1.0 1.2 0.7 4.8 1.4

28.0
5.4 2.4 1.5 0.9 3.9 0.7

26.6
5.2 2.6 1.7 0.8 3.8 0.6

25.6
4.7 2.5 2.4 0.9 3.2 1.0

24.8
4.6 2.1 2.7 0.8 3.3 0.5

22.9
3.9 2.1 3.4 0.8 2.3 1.8

AVERAGE TIME SPENT WATCHING TV

Series 1
160 140 120 Minutes of Viewing TV 100 80 60 Series 1
119 151 152

135

40
20 0 2006 2007 2008 2009

OUTLOOK OF THE TV INDUSTRY

2011P 2011 P 2012P 2013P 2014P %CAGR( 2009-14)

Subscription revenues

191

223

249

293

340

15.0

Advertisement revenues

99

113

133

155

182

15.6

Total

289

337

382

448

521

15.2

EMERGING TRENDS IN TV
Podcast Live TV Interactive TV DTH Reality Shows Youth channels Movie Advertisements in reality Shows

FILMS

In 2010, the industry is estimated to generate revenues of US$ 2.2 billion (INR 105.5 billion). The industry remains dependent on domestic theatrical collections, which generate 70 to 80 per cent of a films revenue. More than 1,000 films are produced annually in more than 20 languages. Regional-language cinema is an integral part of the Indian film industry. The four South Indian languages of Telugu, Tamil, Kannada and Malayalam cumulatively account for 60 per cent of all movies produced in India. There are presently around 850 multiplex screens in India, and this is estimated to grow to 1,600 screens by 2013. Digital cinema is helping film producers reduce cost, release more prints and combat piracy. A digital print cost around one tenth of the physical print. Corporatisation and globalisation of Indian film companies is driving the growth.

BREAK UP OF FILMS MARKET IN INDIA

%
hindi- 45

tamil - 17
crossover hindi - 2

bengali - 1
telgu - 15

malyalam - 10
foreign - 2 others (marathi, bhojpuri) - 8

DOMESTIC/OVERSEAS/HOME VIDEOS BOX OFFICE REVENUES FOR 2005-09

2005 Box office Domestic 52.8 2006 64.0 2007 71.5 2008 81.3 2009 70.0 %CAGR 7.3

2005

2006

2007

2008

2009

%CAGR

Box Office Overseas

5.7

7.0

8.5

10.0

8.0

8.8

2005 Home Video 4.3

2006 6.4

2007 7.4

2008 5.9

2009 6.5

%CAGR 11.2

EMERGING TRENDS IN FILMS

In films advertisement Movie Marketing Movie Merchandise Emergence of Movie malls Single Screen to Multiplex Contests

RADIO INDUSTRY

In 2010, the industry has been estimated at US$ 0.20 billion (INR 9.4 billion), Government of India-controlled All India Radio (AIR) and 37 private FM radio companies that operate close to 248 FM radio stations in India cater to this segment. The yet-to-be-launched Phase-III FM radio licensing policy is likely to give further impetus to the FM radio industry and open up licenses for close to 700 stations and raise the FDI limit from current 20 per cent to 26 per cent. There is a growing advertiser interest in radio amongst the country level and the local advertisers. International radio players such as Radio Netherlands Worldwide (RNW) and BBC have made content-syndication deals with FM radio stations in India.

HISTORY OF RADIO

Broadcasting began in India with the formation of a private radio service in Madras in 1924. In the same year, the British colonial government granted a license to a private company, the Indian Broadcasting Company, to open Radio stations in Bombay and Calcutta. The company went bankrupt in 1930 but the colonial government took over the two transmitters and the Department of Labor and Industries started operating them as the Indian State Broadcasting Corporation. In 1936, the Corporation was renamed All India Radio (AIR) and placed under the Department of Communications. When India became independent in 1947, AIR was made a separate Department under the Ministry of Information and Broadcasting.

TOP ADVERTISER CATEGORIES ON RADIO

Rank 1 2 3 4 5 6 7 8 9 10 Advertiser TV Channel Promotions Cellular Phone service Independent Retailers Social Advertisements Properties/estates Cars/Automobiles Publications/books Insurance Jewellery Educational Institutions

GROWTH OF INDIAN RADIO INDUSTRY 200509

2005

2006

2007

2008

2009

%CAGR

Radio Advertising

3.2

5.0

6.9

8.3

9.0

29.1

LISTENERS OF RADIO OPERATORS

%
30 25 20 15 10 5 0 %

EMERGING TRENDS IN RADIO

Local channels Women and Youth Genre New avenues for Jobs like RJ More vibrant Contests Live radio

MUSIC INDUSTRY

The music industry is estimated to generate revenues of US$ 0.20 billion (INR 9.4 billion) in 2010. Distribution via digital formats on the Internet and through mobile phones is the emerging business model for music companies. Music sold via mobiles as ringtones, caller-back ringtones (CBRTs) and downloads of complete songs contribute 25 to 35 per cent of music companies revenues. Business models built around mobile music such as track downloads and on-demand streaming are expected to emerge in the near future and gain further impetus with the rollout of 3G services. Music sales in physical formats are affected and music companies are repositioning their products to counter this decline by introducing low-cost, MP3-based compact discs (CDs) for low-end customers and premium packaged CDs for high-end customers. It is also being sold on memory cards and pen drives.

By December 2011, the industry is expected to generate revenues of US$ 0.26 billion (INR 12.1 billion), exhibiting growth of 26.8 per cent over 2010

GROWTH OF INDIAN MUSIC INDUSTRY 200709

Physical Sales Sales Physical % change change % Mobile VAS VAS Mobile %change %change Radio Radio %change %change Internet Internet %change %change 2007 2007 6.5 6.5 0.7 0.7 0.2 0.2 0.0 0.0 2008 2008 5.3 5.3 -1805 -1805 1.0 1.0 42.9 42.9 0.4 0.4 100.0 100.0 0.0 0.0 20.0 20.0 0.2 0.2 47.8 47.8 2009 2009 4.0 4.0 -24.5 -24.5 2.1 2.1 110.0 110.0 1.0 1.0 150.0 150.0 0.1 0.1 377.8 377.8 0.4 0.4 52.8 52.8 %CAGR %CAGR -21.6 -21.6 73.2 73.2 123.6 123.6 139.4 139.4

Public Public Performance Performance %change %change

0.2 0.2

50.3 50.3

GROWTH OF INDIAN MUSIC INDUSTRY 2009-14

2009 Physical 4.0 Physical Sales Sales % change % change Mobile Mobile VAS VAS 2.1 %change %change Radio Radio %change 1.0 %change Internet Internet %change 0.1 2010 2007 3.4 6.5 -14.8 0.7 5.0 138.1 0.2 1.6 60.0 0.0 0.2 2011 2008 3.2 5.3 -1805 -7.6 1.0 8.8 42.9 76.0 0.4 2.0 100.0 25.0 0.0 0.3 20.0 2012 2.9 2009 4.0 -7.9 -24.5 -6.9 12.22.1 15.3 110.0 38.61.0 25.4 2.4 150.0 2.9 20.00.1 38.10.4 20.8 0.4 377.8 0.5 24.8 2013 2.7 2014 %CAGR 2.5 -21.6 -7.4 73.219.0 24.2 123.6 3.3 13.8 139.4 0.7 52.1 27.0 %CAGR -9.0

55.3

Public %change Performance Public 0.4 %change Performanc e

%change

0.2 111.6 0.5

0.2 70.3 0.6 47.8

19.1

50.331.1 1.0 22.7

0.7

52.8

0.9

31.5

33.3

15.8

15.3

TRENDS IN MUSIC INDUSTRY

Technology Online Music OVI Reality shows Music channels

ANIMATION GAMING & VFX (VISUAL EFFECTS)

Estimated at Rs.23.8 Bn in 2009 Growth rate at 9% Revenue Distribution: Television 50%, Tv Ads 5%, Movies 20% and Direct to DVD 25% Channels that propagate animation: CN, POGO, Nick, Disney, Hungama etc Movies with animation and VFX: Avataar, Toonpur ka superhero, Harry potter series, Jumbo etc

GAMING INDUSTRY
Expected to grow at 45% Types: Console Gaming (play station 3), Mobile gaming (Gahjini), online gaming (Farmville), PC gaming (solitaire, minesweeper) Console gaming 67% share Mobile 11% PC 16% Online 6%

SOCIAL MEDIA
Various Platforms Speed Cost Scale Uses of Social Media: Networking, Product promotion, employee engagement, Idea generation etc

GOVERNMENT REFORM POLICIES FOR INDIAN ENTERTAINMENT INDUSTRY

The Government has introduced some reform policies to trigger the growth of entertainment industry in India. They are:
Allowing 100% FDI on advertising and film industry through regular channels Authorizing 49% foreign stake in DTH and cable TV Allowing establishment of uplinking destinations to private TV broadcasters for satellite uplinking from India Certifying the repute of an industry to the movie sector It has given its consent on the guidelines for Headend-in-the-Sky (HITS) operators, an equipment that will offer electronic cable content to Indian viewers Permitting Foreign Direct Investment (FDI) in FM radio industry with a 20% restriction Paving way for FM Radio functioning to the private sector Including development projects of film industry in its five-year plans and allocating US$ 50.13 million to it.

THANK YOU!!!