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

Print Newspapers Magazines Trade journals Direct mail

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

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

WOM/Stimulated BuzzIn programme brand

placements

Traditional Media New Age Media

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 2007—making 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 2010 2011 2012 2013 2014 % CAGR

newspaper

143.0 154.6 163.0 173.0 187.0 198.5

% change 8.2 5.5 6.2 8.2 5.9

Magazine 18.5 20.4 23.0 26.0 29.0 32.0 11.5

% change 9.5 13.6 12.1 15.2 11.6

Total 161.5 175.0 186.0 199.0 213.0 230.5 7.4

TOP 10 SECTORS CONTRIBUTING TO THE PRINT ADS IN 2009

Setors % share

Education 15

Services 12

Banking/Finance/ Investments 9

Auto 7

Retail 6

Durables 4

Personal Accessories 4

Personal health care 3

Corporate Brand Image 2

Textiles/ clothing 2

OUTLOOK OF THE PRINT SECTOR% growth 2005-09

21010 2011P

2012P 2013P 2014P %CAGR(2010-14)

Advertising 4.6 114 127 141 158 176 11.6

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 TRP’s

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 fastest-growing 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 second-largest 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.

PROJECTED SIZE OF INDIAN TV INDUSTRY

2006 2007 2008 2009 2010 20110

50

100

150

200

250

300

350

400

450Series 1

Series 1

170 203

327

427

148

250

INR

Bill

ion

Source: IMaCS Analysis, FICCI-PWC Frames 2006 Report

INDIAN TELEVISION INDUSTRY REVENUE BREAKUP

%

TV subscriptionTV advertisingTV Software

58%37%

5%

Source: IMaCS Analysis, FICCI-PWC Frames 2006 Report

GENRE WISE TV CONSUMPTION

% Mass Entertainment

Hindi Films Channel

Kids Channel

Regional Channel

English Entertainment

Music

News

sports

Wild Life, Science others

39

8

33

4

545

2

1

Source: TAM Media Research 2008

SHARE OF CHANNEL GENRES AT ALL INDIA LEVEL

Genre 2004 2005 2006 2007 2008 Jan to Aug 09

Bus News 0.1 0.4 0.5 0.5 0.5 0.4

Cable 11.4 10.6 9.9 10.6 8.7 8.0

Eng Ent 0.7 0.5 0.4 0.3 0.2 0.1

Eng Movie 1.4 1.1 1.0 1.0 0.8 0.8

Eng News 0.3 0.3 0.5 0.7 0.6 0.4

Hindi GEC 24.2 23.6 23.0 22.6 23.2 26.2

Hindi Movies 10.0 9.9 10.5 10.5 11.6 12.6

Hindi News 3.7 4.2 4.5 4.8 4.8 3.7

SHARE OF CHANNEL GENRES AT ALL INDIA LEVEL

Genre 2004 2005 2006 2007 2008 Jan to Aug 09

Infotainment

1.2 1.0 1.0 1.0 0.8 1.1

Kids 2.7 4.0 5.8 5.9 5.4 5.9

Music 1.7 1.6 1.8 2.1 2.5 2.4

Reg GEC 28.8 28.0 26.6 25.6 24.8 22.9

Reg Mov 4.6 5.4 5.2 4.7 4.6 3.9

Reg music 1.0 2.4 2.6 2.5 2.1 2.1

Reg news 1.2 1.5 1.7 2.4 2.7 3.4

Religious 0.7 0.9 0.8 0.9 0.8 0.8

Sports 4.8 3.9 3.8 3.2 3.3 2.3

Others 1.4 0.7 0.6 1.0 0.5 1.8

AVERAGE TIME SPENT WATCHING TV

2006 2007 2008 20090

20

40

60

80

100

120

140

160Series 1

Series 1

119

135

151152

Min

ute

s o

f V

iew

ing

TV

OUTLOOK OF THE TV INDUSTRY

2011P

2011P

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 film‘s 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, bho-jpuri) - 8

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

2005 2006 2007 2008 2009 %CAGR

Box office Domestic

52.8 64.0 71.5 81.3 70.0 7.3

2005 2006 2007 2008 2009 %CAGR

Box Office Overseas

5.7 7.0 8.5 10.0 8.0 8.8

2005 2006 2007 2008 2009 %CAGR

Home Video

4.3 6.4 7.4 5.9 6.5 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 Advertiser

1 TV Channel Promotions

2 Cellular Phone service

3 Independent Retailers

4 Social Advertisements

5 Properties/estates

6 Cars/Automobiles

7 Publications/books

8 Insurance

9 Jewellery

10 Educational Institutions

GROWTH OF INDIAN RADIO INDUSTRY 2005-09

2005 2006 2007 2008 2009 %CAGR

Radio Advertising

3.2 5.0 6.9 8.3 9.0 29.1

LISTENERS OF RADIO OPERATORS

Mirc

hi

Big

Fm

Radio

City

Red F

M

Radio

one

My

FMFe

ver

Sury

an

Meo

w

Power

FM

Aam

ar

hello

FM

HITZ

FM

Frie

nds

0

5

10

15

20

25

30

%

%

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 2007-09

2007 2008 2009 %CAGR

Physical Sales 6.5 5.3 4.0 -21.6

% change -1805 -24.5

Mobile VAS 0.7 1.0 2.1 73.2

%change 42.9 110.0

Radio 0.2 0.4 1.0 123.6

%change 100.0 150.0

Internet 0.0 0.0 0.1 139.4

%change 20.0 377.8

Public Performance

0.2 0.2 0.4 50.3

%change 47.8 52.8

2007 2008 2009 %CAGR

Physical Sales 6.5 5.3 4.0 -21.6

% change -1805 -24.5

Mobile VAS 0.7 1.0 2.1 73.2

%change 42.9 110.0

Radio 0.2 0.4 1.0 123.6

%change 100.0 150.0

Internet 0.0 0.0 0.1 139.4

%change 20.0 377.8

Public Performance

0.2 0.2 0.4 50.3

%change 47.8 52.8

GROWTH OF INDIAN MUSIC INDUSTRY 2009-14

2007 2008 2009 %CAGR

Physical Sales 6.5 5.3 4.0 -21.6

% change -1805 -24.5

Mobile VAS 0.7 1.0 2.1 73.2

%change 42.9 110.0

Radio 0.2 0.4 1.0 123.6

%change 100.0 150.0

Internet 0.0 0.0 0.1 139.4

%change 20.0 377.8

Public Performance

0.2 0.2 0.4 50.3

%change 47.8 52.8

2009 2010 2011 2012 2013 2014 %CAGR

Physical Sales

4.0 3.4 3.2 2.9 2.7 2.5 -9.0

% change -14.8 -7.6 -7.9 -6.9 -7.4

Mobile VAS 2.1 5.0 8.8 12.2 15.3 19.0 55.3

%change 138.1 76.0 38.6 25.4 24.2

Radio 1.0 1.6 2.0 2.4 2.9 3.3 27.0

%change 60.0 25.0 20.0 20.8 13.8

Internet 0.1 0.2 0.3 0.4 0.5 0.7 52.1

%change 111.6 70.3 38.1 24.8 31.1

Public Performance

0.4 0.5 0.6 0.7 0.9 1.0 22.7

%change 31.5 19.1 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!!!