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Indian Print mediaIndianPrintmediaand
Newsprint
MohitJainExecutivePresident
TheTimesofIndiaGroupJune,2016
1
India:Brightspotintheglobaleconomy
GDP2016:$2.2trillion(atcurrentprices)
i i li ( )
57% Duetodomesticconsumption33% DuetoInvestment
h
80
73
846.9 7.3
2 6
6.37.5
Risingliteracyrate(%)GDPgrowthrates
6559
7368
3 8 3.7
0.61.5 2.2
2.5
3.5
1
1 1.72.2 2.6
Overall Rural Urban
2001 2011
3.8
Brazil Russia Japan EU UK US China India
2015 2016P
Source:KPMGIndianmediaoutlook2016 Source:GovernmentofIndia,Census2011
2
IndiahasthehighestGDPgrowthrateprojectionfor2016 Increasedliteracylevels Combinedwithincreasedincomepresentsahighlylucrativemarket
IndianMediaIndustry:Size&Growth
All fi i $ billiAllfiguresin$billion
Printmediashare
30% 27% 26% 26% 25% 23%29%
1416 15 16
1718
20
2010 2011 2012 2013 2014 2015 2016P
3
Source:KPMG
Mediaindustryexpectedtogrowto$20billionin2016 Shareofprintreducing
2016 vs 2015
IndianMediaIndustry:Size&Growth
20
2016vs 2015
Overall9%
Allfiguresin$billion
452
2 2 22
2215
3%
10%
8 9
44 4 4
44
5
10
9%
6 7 7 78 8
9
2010 2011 2012 2013 2014 2015 2016P
4
Source:KPMGTV Print Films Radio Music OOH AnimationandVFX Gaming DigitalAdvertising
Printmediarecordstheslowestgrowthamongmajorsectors
IndianMediaIndustry:Size&Growth
30
35
CAGR20152020
Overall13%
Allfiguresin$billion
63
3
3
20
25
7%
9%
16
45
55
6
22
3
10
15
7%
8 911
1214
16
5
2015 2016P 2017P 2018P 2019P 2020P
14%
5
Source:KPMG
TV Print Films Radio Music OOH AnimationandVFX Gaming DigitalAdvertising
Printmediarecordstheslowestgrowthamongmajorsectors
IndianMediaIndustry:Adrevenuegrowth
2016 2015
0 9
1.2
2016vs 2015
Overall10%
Allfiguresin$billion
29%
3 03.0
0.20.2
0.2 0.20.3
0.30.3
0.4
0.40.3 0.3
0.40.4
0.4
0.2
0.30.4 0.5
0.7
0.9
3%
13%
11%
2.83.0
2.8 2.82.9
3.0
11%
2.3 2.5 2.3 2.3 2.52.8 3.1
2010 2011 2012 2013 2014 2015 2016P
11%
6
Source:KPMG
TV Print Radio OOH DigitalAdvertising
Printisthesecondhighestmediumbyshare;Expectedtogrowonlyby3%
IndianMediaIndustry:Adrevenuegrowth
CAGR 20152020All fi i $ billi
3.812 0
14.0
CAGR2015 2020
Overall15%
Allfiguresin$billion
32%
4 30.5
0.6
0.6
0.5
0.6
0.7
1.7
2.3
3.0
8.0
10.0
12.0
8%
16%
12%
3.03.0
3.33.6
3.9
4.3
0.30.3
0.4
0.5
0.40.4
0.50.9
1.2
4.0
6.0
2.8 3.13.6 4.1
4.85.4
2.0
2015 2016P 2017P 2018P 2019P 2020P
14%
7
Source:KPMG
2015 2016P 2017P 2018P 2019P 2020P
TV Print Radio OOH DigitalAdvertising
Printisthesecondhighestmediumbyshare;Expectedtogrowonlyby3%
8
Print media market in 2015 : $4 5 billion
PrintMedia:India
Printmediamarketin2015:$4.5billion
511
28
86CirculationofregisteredNewspaperpublications(million)
PrintMediaRevenueMix2015(in%)Source:KPMG
264
450
1
11273
296 1
128( )
189,67%
94,33%Advertising
Circulation
Dailies Tri/biweeklies
Weeklies Others Total Categories 2013 2014 2015FMCG 12% 14% 15%
TopspendersonPrintmedia
weeklies
Source:RegistrarofNewspapersinIndia
FY14 FY15Auto 12% 12% 13%Education 10% 9% 10%Realestate/Home 9% 8% 7%Clothing 6% 6% 6%Ecommerce 1% 2% 4%Others 51% 49% 46%
9
Others 51% 49% 46%
Source:PitchMadisonAdvertisingreport2016
Numberofnewspapersincreasedvs PY;FMCGcontinuestobethetopspenderonPrintmediaads
PrintMedia:Readerhabits
Averageconsumptionofnewspaperperhour
90%UK
Internetpenetration
90%
87%
86%
UK
US
Japan
60%
53%
46%
Russia
Brazil
China
Source:KPMG
27%India
Source:IndiaontheGo KPMGMobileInternetVision2017
10 VeryhighreadershipcomparedtoUS/China Digitalpenetrationstillinthenascentstagesascomparedwithothermajoreconomies
PrintMedia:Lookingbeyondthemetrocities
70%ofIndiaspopulation
Governmentemphasisonimprovingruralincomes
Proruralunionbudget201617
NextwaveofdomesticconsumptiontocomefromRuralIndia
MajorindustrysectorslookingatgrowthfromRuralIndia
11
Vernacularmarketgrowth
LanguageNew
publicationsinFY14
Newpublicationsin
FY15Change
Hindi 2,295 2,349
Marathi 584 666Increasing Ad revenue growth in Hindi and vernacular ($ billion)
English 509 533
Gujarati 352 435
Kannada 325 302
Telugu 327 2891.3
1.3 1.3 1.41.4 1.5
IncreasingAdrevenuegrowthinHindiandvernacular($billion)
Urdu 301 270
Tamil 171 211
Others 778 762
Total 5,642 5,817 1.8 1.6 1.6 1 5 1.6 1.6
1.31.3 1.3 1.4 1.4 1.5
Source:RegistrarofNewspapersinIndia
1.5 1.6 1.6
2011 2012 2013 2014 2015 2016P
English Hindi VernacularSource:KPMG
12 StrongHindiandVernacularmarkets IncreaseinadspendonHindiandotherlanguages
Macrotrends
Traditionalprintadcategoriescontinuetospendonthemedium Printindustrysustainsgrowthamidgrowingpopularityofdigitalmedia
Digitalinfrastructurestillunderdevelopedandhaslowreach
IntheUS60%internetpenetrationwasatippingpointforprint;Indiaisat27%
Di it l Still l ll t id f th i t i d t Digital:Stillonlyasmallmeteoroidfortheprintindustry Yettoimpacthouseholdreadership
Classifiedadsmaynotimpactthetopline Regionalmarketsexpectedtoremainbuoyant Hyper localisation on the radar : Tweaks needed in business models Hyperlocalisationontheradar:Tweaksneededinbusinessmodels Managingcoststhroughconsolidationofadsales Advertisements:Goingbeyondthevisualappeal
13
Keydriversforfuture:Improvingreaderexperience,effectiveadplacements&userengagement
Innovation
TALKINGNEWSPAPERWINDOWS
Plowfolds&GateFolds
TRANSCLUCENTNEWSPAPER
SUPERPANORAMA
14
FLAPSWATERMARKS
Technologicaldisruptions
Engagementsspanningmultiplescreens Leveragingvirtualreality Augmentedreality QRcodes
S h Smartwatches Foldablenewspaper Blurringthelinebetweenphysicalanddigitalmedia Socialmediafornewsdelivery Mobileappsfornewsonthegopp g
15
16
India:Newsprintdemand
2.7
2.9
2 6
Consumptiontrends(milliontonnes)
1 41.6
1.81.9
2.12.0
2.1 2.1
2.7 2.6
47% 43% 43% 46% % 51% 49% 50% 48% 51%
53% 57% 57% 54% 53% 49% 51% 50% 52% 49% 47%
1.4
47% 43% 43% 46% 47% 51% 49% 50% 48% 51% 53%
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Imported Domestic Total
S I di N i t M f t A i ti
17
ConsistentgrowthinNewsprintconsumption IncreaseinImports%duetofavourableprices
Source:IndianNewsprintManufacturersAssociationJanuary2016
Newsprintcost:Indiavs RestoftheworldSource:Financialstatements
41%33%
37%31%
33%
31%32%
28%
India Germany USA
ShareofrawmaterialsinTotal
cost
Shareofrawmaterialsinrevenue
201415 201516
ShareofrawmaterialsinTotalcost
Shareofrawmaterialsinrevenue
2014 2015
6% 6%6% 5%
ShareofrawmaterialsinTotalcost
Shareofrawmaterialsinrevenue
2014 20152014 15 2015 16 2014 2015 2014 2015
23%
16%21%
15%
ShareofrawmaterialsinTotalcost
Shareofrawmaterialsinrevenue
2014 2015
Singapore
18 Declineinrawmaterialcostsin201516partiallyduetocommoditycycle NewsprintisthelargestsinglecostdriverinIndia;Staff,SGA&distributioncostsarehigherinothermarkets
2014 2015
India:Newsprintprices
SNPW45gsm CFRIndia($perton)
625 620
600
575
540
525 525520
530
515 520
Jan14
Feb14
Mar14
Apr14
May14
Jun14
Jul1
4
Aug14
Sep14
Oct14
Nov
14
Dec14
Jan15
Feb15
Mar15
Apr15
May15
Jun15
Jul1
5
Aug15
Sep15
Oct15
Nov
15
Dec15
Jan16
Feb16
Mar16
Apr16
Source:RISI,Asianpulpandpapermonitor
19
Newsprintpricesonareboundcurve Pricetrendsfollowglobalpattern
Currencymovements
53.4558.45 60.89
64.03
67.02
30.98 31.8138.49
61.15
70.17
USDINR
12.23 10.89 10.00 11.30 11.79
6.30 6.19 6.14 6.22 6.53
USD INR
USDRUB
USD100KRW
USDCNY
1.33 1.37 USDAUD
USDEUR
0.97
1.041.11
0.78 0.75 0.750.90 0.89
1.00
1.031.10
1.28 1.33
USDEUR
USDCAD
2012 2013 2014 2015 2016YTD
USDexpectedtoappreciatemildlytoaround70INRintheshortterm
Source:http://www.oanda.com Historicalexchangerates
20
USDollarappreciatingagainstallcurrencies 2015wasabadyearfortheRuble butagoodyearforIndianNPprices
a ou d 0 t e s o t te
Newspr
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