Indian Media Scenario

March’2011

Structure

India - Its Happening Now

India at a glance

Diversity

Basic Parameters

Economic Construct

Population Break Up

SEC Clasification

Indian Media

Media reach

Television

Print

Radio

Internet

Media performance on Key Metrics

Content

Indian Advertising Industry revenues

Mediumwise break up

Trends over last 5 years

A closer look at Television Media

Split between – Analog, Digital & Non C& S

Growth over last year

Urban V.s Rural

Growth of C&S Household over years

Viewership Split by languages & Genre

GRPs Contribution – Analog & Digital

Marketwise universe contribution

Marketwise C&S penetration

Outlook 2011

India – Its happening NOW!!!

India – Growth Indicator

Second fastest growing economy in the world

despite the Global slowdown effects. GDP grew at around 7.4%

during FY 09-10

Buoyant Rural economy & consumer markets, growing at a faster pace than the Urban counterparts.

Many Global Corporations queuing up to capitalise on the

opportunities

Per Capita income in India is US$ 740, and is expected to increase to US$ 2000 till 2016-17

Indian Govt. aims at aggressive growth rate of 9 to 10% annually for next 25 years resulting into becoming one of the largest economies

of the world

Source: India Brand Equity foundation & Industry Sources

India’s GDP will match that of US by 2050

71

39 38

0

20

40

60

80

China USA India

GDP estimations 2050 in US$ (Trillion)

Canada by 2012

Italy by 2017

France by 2020

UK by 2022

Germany by 2023

Japan by 2028

India will overtake

Source: Goldman Sachs BRIC Report

World’s no 3 economy by 2050

India is now metamorphosed into a global brand image

• India is likely become the fifth largest consumer market in the world by 2025

• According to World Bank India’s GDP ranks 5th pertaining to Purchasing Power Parity (PPP); after USA, Japan & China

India-Second Fasted Growing Economy

• On a cumulative basis, the FDI equity inflows received by India stood at US$ 20.92 billion during April-December 2009

• Sectors attracting highest FDI Equity Inflows-Services Sector, Telecommunications, Housing and Real Estate

India – 3rd favorite market in global

foreign direct investment

• Tata Steel’s acquisition of Corus, UK for $ 12.1 BN

• United Spirits’ acquisition of Whyte & Mackay, UKfor $1.2 BN

• Bennett Coleman & Co Ltd(BCCL)acquired Britain’s Virgin Radio

Indian companies are turning MNCs through M&As

Globally

Source: India Brand Equity foundation, CIA world Fact book, & McKinsey Global Institute

Young India with higher disposable income

India has largest young population in the world

66% of Indian’s Population is below the 35 yrs of Age

A sustainable young population means

• A longstanding productive working population

• A huge domestic consumer market

Households with annual income of more than Rs. 10 million will almost triple

Source: India Today & Industry Sources

India is most attractive emerging Retail market for investment

The Indian retail market, the 5th largest retail destination globally

India’s overall retail sector is expected to rise to US$ 833

billion by 2013 and to US$ 1.3 trillion by 2018, at CAGR of

10%.

Current organized Retail in India targets 300 million Urban

Middle class & 200 million Rural Rich- this market size is estimated to be around 100

Billion

Source: India Brand Equity foundation& Industry Reports

India – at a glance

India – a diverse country

More than 1 billion people

Urban: Rural ratio 30:70

No. of States – 29

7 Union Territories

No. of Languages

18 Official Languages

No of local dialects

More than 1500 dialects

Key Parameters

Parameters INDIA( All figs in Millions. Excl of %)

Population 1173.1MN

Population Under 15 30.5%

Adult Literacy 61%

Exchange Rates 46.07 (Rs per $)

No of Households 231m

Average no. per household 5.0

Source: TRAI, The Economist, CIA World Fact Book & TAM

The Economic Construct

Parameters INDIA

GDP $1.43 trillion

Origins of GDP % of total

Agriculture 16.1%

Industry 28.6%

Services 55.3%

Structure of Employment % of total

Agriculture 52%

Industry 14%

Services 34%

Source: Govt of India , The Economist & CIA World Fact Book

India’s GDP is expected to grow at 9.2% in the year 2010-11 compared to 7.4% in the year 2009-10

India -Key Media Indicators

Source: TAM, TRAI & Pitch - Madison Advertising Outlook-2010

Parameters INDIA( All figs in Millions. Excl of %)

TV Households 141

Total Net Advertising Spend US$ 5133

% of GDP 0.46%

Fixed Telephone Line Subscribers 35

Mobile Subscribers 752

Total Cable & Satellite Household 116

Analog 90

Digital 26

C&S as % of Total TV 82%

Total Broadband Internet Subscribers 10.92

Population Break Up

R13%R2

9%

R328%

R429%

SEC : A3%

SEC : B5%

SEC : C7%

SEC : D7%

SEC : E9%

Urban31%

Population Split

R1 R2 R3 R4 SEC : A SEC : C SEC : D SEC : E

Source: IRS | Age: 12 years + | All India

Socio Economic Classification

Occupation Illiterate

School upto 4

yrs / literate but

no formal

schooling

School

 5-9

years

SSC /

HSC

Some

College but  

 not

Graduate

Graduate /

Post

Graduate   -

General

Graduate /

Post

Graduate -

Professional

Unskilled Workers E2 E2 E1 D D D D

Skilled Workers E2 E1 D C C B2 B2

Petty Traders E2 D D C C B2 B2

Shop Owners D D C B2 B1 A2 A2

B'Men / Indst. With employees : 0 D C B2 B1 A2 A2 A1

                                                      1 to 9 C B2 B2 B1 A2 A1 A1

                                                      10 + B1 B1 A2 A2 A1 A1 A1

Self Employed Professionals D D D B2 B1 A2 A1

Clerical / Salesmen D D D D B2 B1 B1

Supervisory level D D D D B2 B1 A2

Officers / Executives - Junior C C C B2 B1 A2 A2

Officers/Executives - Middle/Senior B1 B1 B1 B1 A2 A1 A1

SOCIO  ECONOMIC CLASSIFICATION  (URBAN)  GRID

Socio Economic classification based on the education & income of the chief wage earner of the house

Socio Economic Classification

Pucca Semi Pucca Kuchha

Illiterate R4 R4 R4

Literate but formal Edu R3 R4 R4

Upto 4th Std R3 R3 R4

5th to 9th Std R3 R3 R4

SSC/HSC R2 R3 R3

College but not Grad R1 R2 R3

Grad/PG (Gen) R1 R2 R3

Grad/PG (Prof) R1 R2 R3

EducationType of Dwelling/House

RURAL Classification GRID

Rural classification based on the education & the type of the house

Indian Media

Reach of various Media (Urban + Rural)

Source: IRS 2010 Q3| All India | 12yrs + | All SEC | Urban+Rural

57

44

20 18

53

0

10

20

30

40

50

60

70

TV Satellite TV Print Radio Cinema Internet

% Reach

Reach of various Media - Urban

Source: IRS 2010 Q3| All India | 12yrs + | All SEC| Urban

82

72

36

22

9 7

0

10

20

30

40

50

60

70

80

90

TV Satellite TV Print Radio Cinema Internet

% Reach

Television Channels & Viewership by language

Total TV Channels575

Terrestrial27 channels 1.7% Share

Cable & Satellite548 channels 97.8% Share

Hindi72 channels 46 % Share

English37 channels2.5% Share

Vernacular176 channels37.9% Share

Multi feed29 channels 9.9 % Share

Others261 channels1.5 % Share

Local Cable5 channels 6.5% Share

Source: TAM | Market: All India| TG: All C&S 4+ | Multiple feeds- Channels Having Language feed in more than one language(Eng/Hin/vernacular)

TV Audience Measurement systems

Parameters aMap TAM

No. of Metered Homes( Analog + Digital) 7200 8000

Town Classes covered .1mn + Towns .1mn+ Towns & Mah LCI

No. of Cities covered 87 162

Geography Urban Urban

Gender R R

Age Group R R

Socio Economic Classification R R

Education R

Working Status R

Occupation/Profession R

Income Levels R

Ownership R

Type of Dwelling R

Pan Indian Sampling R R

Viewership Update Daily Weekly

Print - Readers in India are spoilt for choices

Total Dailies & Periodicals

62483

Hindi24927

English9064

Vernacular28492

• Print has more than 10000+ unique titles in India

• 46% of the registered publications are in Vernacular language

Source: Registrar of Newspapers For India

Total Registered Titles

Research in Print

There are two sources of information for print evaluation - Indian Readership Survey & National Readership Survey

The Audit Bureau of Circulation (ABC) is a body that ratifies the circulation figures of the publications but is not used as a primary source for evaluation of publications

Out of these above survey NRS has not been updated since 2006, while IRS updates its survey results every quarter

The IRS provides both the Average Issue Readership (AIR) which based on whether the respondent has read a publication within its last period of publication (last one day for dailies, last one month for monthlies etc) as well as Total Readership

It covers both Urban & Rural India under its survey representing around 876 Million Individual across the country above the age of 12 Yrs

Rank Top 10 Dailies LangReach in

MNRank Top 10 Magazines Lang Freq

Reach in

MN

1 Dainik Jagran Hin 16.0 1 Vanitha (Mal) Mal F 2.7

2 Dainik Bhaskar Hin 13.5 2 Saras Salil Hin F 2.0

3 Hindustan Hin 10.8 3 India Today Eng W 1.8

4 Malayala Manorama Mal 9.9 4 Malayala Manorama Mal W 1.3

5 Amar Ujala Hin 8.6 5 India Today Hin W 1.2

6 Daily Thanthi Tam 7.2 6 Kumudam Tam W 1.2

7 The Times of India Eng 7.3 7 Meri Saheli Hin W 1.2

8 Lokmat Mar 7.8 8 Grih shobha Hin W 1.2

9 Mathrubhumi Mal 6.7 9 Cricket Samrat Hin W 1.1

10 Rajasthan Patrika Hin 7.2 10 Grehlakshmi Hin W 1.1

Source: IRS 2010 Q3| Reach in MN indicate Average issue readership(AIR)

Top Dailies and Magazines

Radio – around 250 Private FM Stations

The radio sector is poised for an exponential growth in India.

There is a proposal for allowing 806 private FM Radio stations in Phase III

In addition, All India Radio (AIR) is getting ready to launch a total of 320 FM radio stations

Currently there are around 250 FM stations across 90 Cities

Radio TYPE Markets

GROUP- 1 11

GROUP- 2 24

GROUP- 3 28

GROUP- 4 45

GROUP- 5 80

GROUP- A 9

GROUP- B 19

GROUP- C 12

VB NETWORK 30

Private FM Stations 34 FM Stations 247

PRIMARY CHANNEL STATIONS

VIVIDH BHARATI STATIONS

Research/ Measurement in Radio

Radio Audience Measurement (RAM) is an independent division of TAM Media Research constituted in March ’07.

Market Coverage: Mumbai, Delhi and Bangalore & Kolkata

RAM measures anywhere (In Home, In Car, At Work/College/School & Elsewhere) consumed Radio Listenership at a quarter hour level

RAM uses Diary system to measure Radio Listenership. RAM Universe is All People, 12+ years owning an FM Device

RAM delivers listenership data on weekly basis through Radio Advisor software

Listener Definition: A panel member is reached if he/she listens to any particular radio station for at least 8 minutes continuous OR discontinuous in any given quarter hour

Internet in India

Source: IAMAI & TRAI| Active users – using internet at least once a month

Growth of Broadband in India

Subscribers in Millions 2006 2007 2008 2009 2010

Subscribers 2.34 3.13 5.45 7.57 10.92

% Growth 34% 74% 39% 44%

2

11

42

52

0

10

20

30

40

50

60

2000 2004 2008 2010

Active Internet Users(in Milion)

The total number of active internet users in India has grown by more than 250% in last decade.Similarly broadband users in India have been consistently growing on an average of around 50%

Summary of media performance on Key Metrics

Parameters Press TV Outdoor Radio Internet Cinema

Syndicated Research of medium P P X P P P

Measuring Delivery for Communication X P X X X X

Monitoring of Ads P P X P X X

Critical Mass P P P P P P

Interactivity of Medium X X X X X X

Industry Body P P X P P X

Present scenario

Ad Rev in INR million

Count of Titles /

Channels / Stations

Advertising revenue is the major source of income for Media companies in India

Source: Pitch-Madison Media Advertising Outlook2011

0

20000

40000

60000

80000

100000

120000

TV Press Radio Cinema Outdoor Internet

2008 2009 2010

62000+500+ 250+

Trend of Advertising revenues in India

Ad revenues in INR billion

Source:: Pitch-Madison Media Advertising Outlook2011

187

42

41

40

40

43

45

48

48

48

47

39

42

7

7

7

7

6

6

2

2

3

3

3

4

1

1

1

2

2

3

0% 20% 40% 60% 80% 100%

2005

2006

2007

2008

2009

2010

TV Press Outdoor Radio Internet Cinema

236

207

177

119

145

A closer look at Television in India

More than 100 Million C&S TV households in India

Source: TAM | Urban + Rural

Total TV Owing

Households

141 mn

Analog Households

90 mn

Digital Households

26 mn

Non C&S Households

25 mn

Total Households in India231 mn

Cable & Satellite households in India has grown by around 11%

C&S

Digital

20 Mn

C&S Analog

83 Mn

TV Owning Households 134 Mn

Total Households 223 Mn

C&S

Digital

26 Mn

C&S Analog

90 Mn

TV Owning Households 141 Mn

Total Households 231 Mn

% Growth

31%

12%

6%

3%

2010 2011

Source: TAM | Urban + Rural

Digital Growth driven by rural market

Digital

9 Mn

C&S Analog

51 Mn

TV Owning Households 68 Mn

Total Households 78 Mn

Digital

17 Mn

C&S Analog

39 Mn

TV Owning Households 73 Mn

Total Households 153 Mn

Urban Household 2011 Rural Household 2011

Source: TAM

No. of C&S HHs has grown by 170% in last 8 years

4361 68 75 83 90

2

1520

26

0

20

40

60

80

100

120

140

2003 2005 2006 2009 2010 2011

Analogue Cable Digital Cable

% Rise as compared to 2003

42% 63% 109% 140%

Source: TAM & NRS | Urban + Rural

170%

C&S enabled homes on the rise in India

Viewership by language & Genre coming

Source: TAM | Market: All India| TG: All C&S 4+

Broad Genre HindiVernacu

lar

Multi

FeedEnglish Others Total

Entertainment 22 52 5 79

Movie 12 6 1 7 26

News 26 43 13 2 84

Cable 1 4 5

Kids 1 6 1 1 9

Others 8 30 5 1 251 295

Music 1 18 8 2 29

Sports 1 4 5 10

Terrestrial 2 25 27

Infotainment 5 2 7

Lifestyle 3 1 4

Total 72 176 29 37 261 575

# of Channel

Broad Genre HindiVernacu

lar

Multi

FeedEnglish Others Total

Entertainment 29 24 0 53

Movie 11 2 0 1 14

News 4 3 0 0 7

Cable 6 0 6

Kids 0 6 0 0 6

Others 0 2 0 0 1 4

Music 0 2 2 0 4

Sports 1 1 1 3

Terrestrial 1 1 2

Infotainment 1 0 1

Lifestyle 0 0 0

Total 46 40 10 3 1 100

% Share of Viewership

GRP contribution between Analog & Digital

Large Network GRPs ANALOG DIGITAL

All TV 3565.0 89% 11%

Star India Network 554.4 85% 15%

Zee Network 493.9 69% 16%

SunTV Network 490.6 85% 14%

Sony Network 352.8 77% 23%

Viacom & TV 18 & IBN Network 292.3 86% 14%

ETV Network 107.5 92% 10%

Turner 104.2 68% 7%

Turner Entertainment 73.9 61% 6%

Disney 70.6 89% 11%

UTV 67.2 70% 10%

Asianet Communications Ltd. 53.8 92% 8%

Maa Television Network 40.3 45% 3%

Sahara One Entertainment 37.0 58% 9%

NIMBUS Communications Limited 37.0 64% 3%

TV9 33.6 92% 8%

GRP Contribution

Source: TAM| Market: All India| TG: CS 4+

Marketwise Universe Contribution

21%

11%

8% 8% 8% 8% 8%6% 6%

5% 4%2% 2% 1% 1% 0%

0%

5%

10%

15%

20%

25%

Mah

aras

htr

a

UP

DEL

HI

WB

Gu

j

AP

TN

Kar

nat

aka

PH

CH

P

MP

Raj

Ker

ala

Ch

atti

sgar

h

Ori

ssa

Bih

ar

Ass

am

C&S Penetration

Source: TAM

Marketwise Cable & Satellite Penetration

85%77%

94%99%

89%97%

79%

94%89%

80% 76%

93%

78% 75%81% 81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mah

aras

htr

a

Utt

ar P

rad

esh

DEL

HI

Tam

il N

adu

Wes

t B

enga

l

An

dh

ra P

rad

esh

Gu

jara

t

Kar

nat

aka

PH

CH

P

Mad

hya

…

Raj

asta

n

Ker

ala

Ori

ssa

Ch

atti

sgar

h

Bih

ar

Ass

am

C&S Penetration

Source: TAM

Outlook 2011

Localization, Super niche & Customized solutions to drive the media industry growth

Print

Print share in ad pie is expected to shrink from 42.3% to 40.8%

More innovation, rate correction will be the norm in the year 2011

Special Interest magazines will still continue to grow, currently growing at the rate of 100%

TV

TV Revenues are expected to grow by 20%

Advertising revenues to the Channel revenues will continue to be higher than the subscription revenues

But share of subscription is only likely to grow overall, with growing digital penetration& increased addressability

With increasing strength of regional channels, big network will focus on Regional space due to geographic addressability

Source:: Pitch-Madison Media Advertising Outlook2011

Radio

Licensing of Phase III & policy changes is expected to drive the growth for radio

Due to Phase III licensing 700 more FM stations expected to be launched

Radio is expected to witness only 15% rise in overall ad revenues compared to 30% growth in the year 2010

OOH

The Medium is expected to witness 15% growth in Revenues compared to 27% growth

Business Interest & Expenses will be high on gaining capabilities , delivery efficiencies in upcountry & rural market

Internet

Internet is expected to eat into print share

The Medium is expected to grow by 35%

Cinema

Revenues on Cinema Medium is expected to witness a healthy 10% growth

Source:: Pitch-Madison Media Advertising Outlook2011

2011 - Ad revenue growth will be driven by TV

105100

149 7

1

126

113

1710 9

1

20

13

1515

35

10

0

5

10

15

20

25

30

35

40

0

20

40

60

80

100

120

140

TV Press Outdoor Radio Internet Cinema

2010 Ad Rev. 2011 Ad Rev. Growth%

% G

row

th

Source: Pitch-Madison Media Advertising Outlook

Ad

rev

enu

es in

INR

bill

ion