Media & Entertainment

Media & Entertainment Sector Report

Presented by: Group 1IntroductionTotal size US $15.38 billion till 2012MKOS - Section C - Group 12TelevisionMKOS - Section C - Group 13FilmMKOS - Section C - Group 14PrintMKOS - Section C - Group 15RadioMKOS - Section C - Group 16Environment ScanMKOS - Section C - Group 17

Global ContextMKOS - Section C - Group 18Size of the M&E Industry in India

MKOS - Section C - Group 1

9Segment Revenue Contributions

MKOS - Section C - Group 110Constituents of Advertising Revenues

MKOS - Section C - Group 111MKOS - Section C - Group 112The Impact of Technology MKOS - Section C - Group 1Source: CII report on the E&M industry, published by PwC in 201313The Impact of Technology (contd.)MKOS - Section C - Group 114Regulatory Framework in IndiaThe E&M sector in India is regulated primarily by the Ministry of Information & Broadcasting and the Telecom Regulatory Authority of India (TRAI)

Major functions: to monitor, regulate and promote the growth of the sector in the country

The I&B ministry is also responsible for the administration of Prasar Bharti, Doordarshan and All India Radio.MKOS - Section C - Group 1

15Recent Policy Decisions

MKOS - Section C - Group 1

Fixed Ad duration times16Present ScenarioMKOS - Section C - Group 117

Demand Drivers for M&E

18MKOS - Section C - Group 119MKOS - Section C - Group 1Increasing Media Penetration and Per Capita Consumption:Low media penetration particularly across SEC B, C and D segments offers significant headroom for growth. With increase in per capita consumption, discretionary spends are expected to grow and entertainment and leisure platforms are likely to beneficiaries of this trend. Moreover, as metros and tier 1 markets get saturated, media companies are looking to penetrate the tier 2 - tier 3 towns and rural markets. For e.g. multiplexes have expanded across tier 2 towns, while DTH players have helped achieve greater C&S penetration across rural India.Power of Digitisation:Digitisation continues to be a key growth driver for the Indian M&E Industry and this trend was even more pronounced in 2010. Film studios saw greater adoption of digital prints over physical and it was the first time in India that digital music sales surpassed that of physical units' sales. Digitisation of theaters continues to ensure the widespread release of films, reaching the remotest areas of the country at less than 80 per cent of the cost of conventional film prints. The number of digital screens in the country increased from around 2,000 in March 2010 to nearly 5,000 in June 2011. Moreover, the digital revolution has enabled leveraging of content across various platforms such as home videos, internet and mobiles. Hollywood filmmakers outsourced more VFX work to India to tap low labor costs and the large pool of English-speaking workers with advanced computer skills in the country to successfully make animations such as Puss In Boots. The growing comfort of Indian filmmakers with VFX, increasing formats for 2D to 3D conversion and the continued growth of outsourced work are expected to be some of the industry drivers in the coming year.Consumer Understanding:With increasing fragmentation and increase in competition, a deeper understanding of cultural and social references through focused study groups would enable players to target their consumers specifically and build loyalty.Other factors:Regional media channels gaining popularity, different tastes of the audience and thereby different content, growth of the importance of the media are also few factors due to which the Media and Entertainment Sector is growing.Social media has gained prominence as a marketing tool for production houses. Facebook, Twitter and other social networking websites are being used to create a buzz around films before and after their release. Audiences are increasingly being engaged with film content through games, contests, teasers videos and opinion polls. Social networking websites have also been useful in gauging audience response. Digital platforms, apart from their growing reach, offer an important source of revenue through advertising. Use of this medium for marketing movies is expected to rise with increased internet penetration in the future.1920MKOS - Section C - Group 1Increasing Media Penetration and Per Capita Consumption:Low media penetration particularly across SEC B, C and D segments offers significant headroom for growth. With increase in per capita consumption, discretionary spends are expected to grow and entertainment and leisure platforms are likely to beneficiaries of this trend. Moreover, as metros and tier 1 markets get saturated, media companies are looking to penetrate the tier 2 - tier 3 towns and rural markets. For e.g. multiplexes have expanded across tier 2 towns, while DTH players have helped achieve greater C&S penetration across rural India.Power of Digitisation:Digitisation continues to be a key growth driver for the Indian M&E Industry and this trend was even more pronounced in 2010. Film studios saw greater adoption of digital prints over physical and it was the first time in India that digital music sales surpassed that of physical units' sales. Digitisation of theaters continues to ensure the widespread release of films, reaching the remotest areas of the country at less than 80 per cent of the cost of conventional film prints. The number of digital screens in the country increased from around 2,000 in March 2010 to nearly 5,000 in June 2011. Moreover, the digital revolution has enabled leveraging of content across various platforms such as home videos, internet and mobiles. Hollywood filmmakers outsourced more VFX work to India to tap low labor costs and the large pool of English-speaking workers with advanced computer skills in the country to successfully make animations such as Puss In Boots. The growing comfort of Indian filmmakers with VFX, increasing formats for 2D to 3D conversion and the continued growth of outsourced work are expected to be some of the industry drivers in the coming year.Consumer Understanding:With increasing fragmentation and increase in competition, a deeper understanding of cultural and social references through focused study groups would enable players to target their consumers specifically and build loyalty.Other factors:Regional media channels gaining popularity, different tastes of the audience and thereby different content, growth of the importance of the media are also few factors due to which the Media and Entertainment Sector is growing.Social media has gained prominence as a marketing tool for production houses. Facebook, Twitter and other social networking websites are being used to create a buzz around films before and after their release. Audiences are increasingly being engaged with film content through games, contests, teasers videos and opinion polls. Social networking websites have also been useful in gauging audience response. Digital platforms, apart from their growing reach, offer an important source of revenue through advertising. Use of this medium for marketing movies is expected to rise with increased internet penetration in the future.2021MKOS - Section C - Group 1Increasing Media Penetration and Per Capita Consumption:Low media penetration particularly across SEC B, C and D segments offers significant headroom for growth. With increase in per capita consumption, discretionary spends are expected to grow and entertainment and leisure platforms are likely to beneficiaries of this trend. Moreover, as metros and tier 1 markets get saturated, media companies are looking to penetrate the tier 2 - tier 3 towns and rural markets. For e.g. multiplexes have expanded across tier 2 towns, while DTH players have helped achieve greater C&S penetration across rural India.Power of Digitisation:Digitisation continues to be a key growth driver for the Indian M&E Industry and this trend was even more pronounced in 2010. Film studios saw greater adoption of digital prints over physical and it was the first time in India that digital music sales surpassed that of physical units' sales. Digitisation of theaters continues to ensure the widespread release of films, reaching the remotest areas of the country at less than 80 per cent of the cost of conventional film prints. The number of digital screens in the country increased from around 2,000 in March 2010 to nearly 5,000 in June 2011. Moreover, the digital revolution has enabled leveraging of content across various platforms such as home videos, internet and mobiles. Hollywood filmmakers outsourced more VFX work to India to tap low labor costs and the large pool of English-speaking workers with advanced computer skills in the country to successfully make animations such as Puss In Boots. The growing comfort of Indian filmmakers with VFX, increasing formats for 2D to 3D conversion and the continued growth of outsourced work are expected to be some of the industry drivers in the coming year.Consumer Understanding:With increasing fragmentation and increase in competition, a deeper understanding of cultural and social references through focused study groups would enable players to target their consumers specifically and build loyalty.Other factors:Regional media channels gaining popularity, different tastes of the audience and thereby different content, growth of the importance of the media are also few factors due to which the Media and Entertainment Sector is growing.Social media has gained prominence as a marketing tool for production houses. Facebook, Twitter and other social networking websites are being used to create a buzz around films before and after their release. Audiences are increasingly being engaged with film content through games, contests, teasers videos and opinion polls. Social networking websites have also been useful in gauging audience response. Digital platforms, apart from their growing reach, offer an important source of revenue through advertising. Use of this medium for marketing movies is expected to rise with increased internet penetration in the future.2122MKOS - Section C - Group 1Phase 3 licensing: Up to 700 licenses to be granted for 92 small towns22Major PlayersMajor Players

23MKOS - Section C - Group 1

24MKOS - Section C - Group 1Major Players in M & E (by Mark Cap)

25MKOS - Section C - Group 1Employment potential & Skills requirements

26MKOS - Section C - Group 1

Project Human Resource Requirements 2008 to 2022 (in 000s)27MKOS - Section C - Group 1

28MKOS - Section C - Group 1

29MKOS - Section C - Group 1Challenges facing M&E

30MKOS - Section C - Group 131MKOS - Section C - Group 1Cyber Due Diligence: http://cjnewsind.blogspot.in/2012/03/cyber-law-due-diligence-for-press-and.htmlDigital Preservation: http://cjnewsind.blogspot.in/2011/02/digital-preservation-in-india-is-needed.htmlInnovation-Policy Mismatch & Price Control: http://www.governancenow.com/news/regular-story/growing-big-going-global-challenges-indian-mediaIPR Issues & Domain Name Disputes: http://ptlb.in/blog/?p=28031Future ProspectsMKOS - Section C - Group 132

The FutureMKOS - Section C - Group 133MKOS - Section C - Group 1

34Will the Reach Expand???MKOS - Section C - Group 118% CAGR (2012-17)

Digitisation: Will provide opportunities to both digital & DTH

FMCG remains top investor

Regional market will dominateRemains largest medium in India

35Will the Reach Expand???MKOS - Section C - Group 15.8% CAGR (2012-17)

Newspaper Clout

Auto & FMCG remains top investor

Regional market will dominate

36Will the Reach Expand???MKOS - Section C - Group 110% CAGR (2012-17)

Increased penetration of mobile phones has increased radio reach

Delay in the phase 3 has hit the channel

37Competition MKOS - Section C - Group 138

TV Value Chain39MKOS - Section C - Group 1

Game Changers: TelevisionTelevision Sales : 14 million TV sets; LCD and LED panels account for 40% sales and expected to grow by 100% until 2017Paid C&S Base Expected to Go To 173 Million by 2017Launch Of New Television ChannelsMobile Television Rising : Reaching the consumer even when the consumer is not at home. Online Advertising for TV

40MKOS - Section C - Group 1

Key Trends : FilmsRegional Films gaining popularity: Jatt and Juliet(2012) Largest Grossing Film of all timesDigitisation of Cinema Screens: 70% ; UFO Moviez IndiaGaming, Animation and Social Media as increased forms of promotion: E.g. Ra.OneHome Video segment is showing a declining trend; Youtube DTH PPV Model3D Films are on a rise demanding a higher ticket price. Premium VOD; Day and Date ReleasesLack of good Broadband structure have kept global players like Hulu; Netflix at bay

41MKOS - Section C - Group 1Game Changers: Print AdvertisersNewspapers have digital presence and archives; Digital Content is free compared to paid world trendsMicro-Payment Technology: NFCOpen Journalism: E.g. The GuardianStreaming: Helps in Cross Selling Ad inventory Space IBNReal Time and HT TweetsSocial Listening ToolsMergers and Acquisitions in PrintIncreasing Interest by Telecom Companies. 27.5% Stake in Living Media by Aditya Birla GroupGo National Agenda: Dainik Jagran

42MKOS - Section C - Group 1The French ConnectMKOS - Section C - Group 143

Global ContextMKOS - Section C - Group 144MKOS - Section C - Group 145Industry StructureIn France, M&E industry is a very large sector integrating a lot of different actors: Music, Publishing, Press, Radio, Film, Advertising, TV, Internet and video games

The boom of digital medias is a real threat for traditional M&E. With the growing use of mobile and the rise of illegal uploading, the major actors of the industry will have to adapt

With the constant creation of new medias, a new concept appeared: the war of contentsMKOS - Section C - Group 146http://fr.slideshare.net/weaveconseil/medias-secteur-medias46Industry Structure Key FiguresMore than 50 billion euros turnover for the year 2009, of which 38 billion were earned by the 100 biggest french companies. 40% of this turnover was made by audiovisual companiesM&E sector is very dependant on the state, that give a lot of money, the sponsorhip, that invest a lot, and the advertisment, which is the bigget source of revenue

MKOS - Section C - Group 147

Industry Structure Major playersTV: France2 and France 3 are the two majors public channels, TF1 is the bigger private one. Radio: Radiofrance is the major radiogroup in France. It releases its progrma in different languages and is internationaly famousNewspapers: OuestFrance is the most read newspaper in France. However, Le monde, Le Figaro and Libration are very famous in the cities.MKOS - Section C - Group 148Industry Structure - Evolution

The most important evolution in the M&E sector is the evolution of supports

From traditionnal support and media, we are now arriving in the digital reaMKOS - Section C - Group 149Employment Potential & Skills RequirementToday, there are 3 times more journalists than in the year 1975. They were 10 000 in 1975 and are 31000 in 2013. However, the sector is in crisis and the job opportunities are rare.The publishing sectors allow 25,000 people to have a job. With the development of digital books, the sector is experiencing a revival that allow a little job creationHowever, the number of employees remains stable.

The thing is, M&E is a very special sectors that requires specific skills. To find a job in this sector, it si often required to have studied in french private and prestigious schools (CELSA, SciencesPo, Business school) and to have a great experience in this domain. MKOS - Section C - Group 15050Actuality: Merger of Advertising Giants: Omnicom and Publicis

28th, July 2013New challengesBig DataIntegrating new channelsTargeting new audienceFacing new competitors (Google, facebook, Twitter)MKOS - Section C - Group 151Thank You!!!MKOS - Section C - Group 152Presented by:

Aastha Malhotra12IB-001 Rohith Desikan12DCP-095

Nikhil Saxena12DCP-073Salil Srivastava12DCP-099

Abhinav Gupta12DCP-002Anne-Laure Thupin13FRN-331

Marine Loillier13FRN-330Mathilde Noizet13FRN - 303

SOURCEShttp://www.pwc.fr/presentation-de-letude-global-entertainment-and-media-outlook-2013.html

http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Driving_Growth_through_Innovation_in_Media_Entertainment.pdf

http://www.pwc.fr/le-digital-portera-64-de-la-croissance-du-secteur-des-medias-and-loisirs-dans-le-monde-dici-2017.html MKOS - Section C - Group 153http://blog.bringr.net/post/52291299009/quel-futur-pour-le-secteur-des-medias-et-des-loisirs53