INDUSTRY:MEDIAANDENTERTAINMENT

RollNo. 2012068 2012077 2012080 2012086 2012095 2012120 2012121

Name AlayBharatkumarShah GauravAshokMaybhate JerryJohn Manvendra Dattatray Chougule Priyank Pradeep Gujrani Sushovan Saha SwayambharMajumder

Industry Overview
GrowthopportunityinagrowingeconomylikeIndia

IndiantelevisionadvertisementrevenuegrowthdrivenbyGDPGrowth CableTVdigitization:Subscriptiondrivenrobustgrowth SubscriptionRevenue:IncreasingBroadcastersshare Revenuefocus:Internationalandregionalmarket IncreasingnumberofHDandotherpremiumchannels:Anewtrend Regulatoryinterventioncancurbtheadvertisementrevenuegrowth

ITS IT SALLRELATED

5 Forces Threat of new entrant Bargaining power of suppliers Competitio n in industry Threat of substitute product

Score 2

Rationale High initial cost & due to stable bl i d industry, threat of new entrant is low Dependency on MSO and LSO for distribution allow them to demand higher prices Competitors are equally well placed. Existing players entering into new genres. Mobile base TV and Internet based TV are in initial phase and see as addition to home TV & not replacement p ZEEL & SUN have vast portfolio of channels and agreement with other broadcasters (MediaPro)

0 Nointeraction 1 Insignificant

2 Low 3 Average

4 High 5 Veryhigh

Bargaining power of buyers

GrowingTelevisionIndustry &Cable bl subscriptions b

SnapshotofTVindustry ValueChain
Content Production B d Broadcasting i
Production costs are linked to inflation Cable digitisation is expected to create significant opportunities for content providers Broadcasters believe that content is underinvested and with the improving economics on account of digitisation

Growth is expected to be driven by a sharp increase in subscription revenues while carriage costs are expected to rationalize in metro markets In digitised areas, carriage costs appear to have declined. At the same time, TAMs increased coverage of Less than Class I (LC1) markets has resulted in some of the carriage savings being redirected to increase reach in LC1 markets Phase 1 of cable digitisation kickstarted, and met with varying degrees of success in the four metros Industry discussions suggest that the digitisation in Phase 1 cities may not all be addressable yet Completion of Phase 2 digitisation is likely to get delayed by 9 to 12 months.

Distribution

SWOTforZEEL
Highviewershipratings Completebouquetofchannels Highsubscriptionrevenues LaggingbehindStarPlus Problemofattrition Increaseinoperatingcosts

SWOT
Benefitfromtherobustgrowthofthe entertainmentandMediasector Digitisation SlowdowninIndia India's seconomicgrowth Increasedcompetition Decliningviewershipandrevenueshare ofGECchannels

ZEE KeyHighlights
Unlikelyforadvertisementrevenuegrowthtocontinueathighrates:

MediaProtractionanddigitizationdrivesubscription revenues: Sportslossestocontinue EmergenceofOvertheToptelevisionplatformmaysurprise positively

FinancialAnalysis
Unlikely U lik l to t continue ti withHighrevenue growth Improvingshareof subscriptionrevenue: Historical i i ltrend d expectedtoreverse SlightlyImproving Margins
Stablesubscriptionrevenueanddecliningadvertisement revenuegrowth

Witheffectofdigitizationandincreasingpenetration,subscription revenueshareisexpectedtoincreasefrom43%to50%fromFY2013 toFY2016 Advrevenuesharewilldeclinefrom52%to48%forthesameperiod

Onaccountofreductionincarriagecostduetodigitization,EBITDA marginisexpectedtoimproveslightly

WE ARE ON YOUR SIDE

SUNTVBusinessPortfolio

SWOTforSUN
SunNetworkwithitspresenceacrossgenres andwithadominantmarketshareinthefour Theyareconfinedonlyto4statesofthe southernstatesofensurescontinuedand country,socanneverbeatthechannels sustainedviewership ofZEEorSTARwhicharediversified andp prominentroleintheMediaand acrossthenation EntertainmentIndustry

SWOT
Theongoingdigitalisationofcontent, Thecompetitionandincreasingpricesmay shifttoonlineandmobiledistributionof adverselyaffectourabilitytoacquire contentandthe desiredprogrammingandartistictalent.Their rapidpaceofinvocationcreate successdependsonourabilitytocaterto opportunitiestoservenewcustomersin viewerperformanceandmaintainhigh audienceshareswhichcouldbeaffected affected. newmarkets k

Key Highlights
DigitisationtoprovidefilliptoSunTVssubscriptionrevenues

InternationalsubscriptionrevenueandIncomefrom moviedistributiontoprovidesupporttotopline Domesticcablesubscriptionrevenuegrowthto outperformDTHstream Advertisingrevenuestowitnesstractiongoingahead

FinancialResults

CONTENT Focuson
regionalmarket Diversification inradioandFM Nichecontent

REVENUES Digitalization
International subscription p revenue &incomefrommovie distribution

RETURN
Diversification Collaboration Distribution

STRATEGY
Increasethemarketshare,insouthIndianstatesandradioalloverthe country.Inadditiontoitincreasethereturntotheshareholdersofthe company

CompetitiveAnalysis(ZEELVsSunTV)
ZEEhas strongpresenceinallgenres ZEELhasLowercomposition of fadvertisement d i revenue comparetoSUNTV

CompetitiveAnalysis(ZEELVsSunTV)
ZEELhashigherfluctuationinannualrevenue growthrateaswellaslowCAGRinrevenue incomparisontoSUNTV

Recommendations
ZEEL
Th They should h ld f focus on diversification of offerings like going to radio industry etc Their Th i attrition tt iti rate t is i more than industry average. They should focus on retaining the employees to reduce their operational cost Their certain channels has very less revenue from ads, ads so for their regional channels, they should focus more on local ads, as co compared pa ed to national at o a ads

SUNTV They should launch some more channels to cover the nation
They are more focused on south Indian states. Change of government can harm them

They should try to exploit the international segments like gulf

As a lot of NRI (from southern part of the country) are settled l there h

..Thank You..