Indian Media Scene

September2011

Content

India - In 2010 India at a glance

Diversity Basic Parameters

Economic Construct

Indian Media

Television

Print Radio Internet Film & Music OOH

Content

Growth of the media industry Growth of advertising revenue India Outlook-Projection 2015 A closer look at Television Media

Television revenue TV households Pay TV households Pay TV ARPU TV advertising revenue

Top advertisers & brands

Number of TV channels & new launches Viewership share Hindi GEC overview IPL IV Television 2011

Content

Print Industry

Total revenue Revenue segmentation Top sectors & categories in print Top advertisers Total revenue Top sectors & categories on radio FM penetration 2007 vs. 2011 Mode of listening to radio Total revenue Top social networking sites Purpose of internet access Users profile Internet 2011

Radio Industry

Internet Industry

Content

Film & Music Industry

Film-Total revenue Multiplex players Music industry trend & conclusion

OOH industry trend & conclusion

Data sources

Google.com Census of India The Economist Telecom Regulatory Authority of India (TRAI) Television Audience Measurement (TAM) Price Water House Cooper (PWC Entertainment & Media Outlook) Radio Audience Measurement (RAM) ComScore Media Matrix Indian Readership Survey (IRS) Radio Establishment Survey Indian Market Research Bureau (IMRB) Central Intelligence Agency World Fact Book (CIA)

India In 2010

India a diverse country

More than 1 billion people

Urban: Rural ratio 31:69

No. of States 29 7 Union Territories No. of Languages

22 Official Languages

No of local dialects

More than 1600 dialects

Key Parameters

Parameters Population Population Under 15 Literacy Rate Exchange Rates No of Households Average no. per household

INDIA ( All figs in Millions. Excl of %) 1210.2 Million 29.7% 74% 45.35 (Rs per US$) 213m 5.0

Source: TRAI| The Economist| CIA World Fact Book | TAM | PWC

The Economic Construct

Parameters GDP Origins of GDP Agriculture Industry Services Structure of Employment Agriculture Industry
Services

INDIA $1.53 trillion % of total 18.5% 26.3% 55.2% % of total 52% 14%
34%

Source: Govt. of India | The Economist | CIA World Fact Book

India in Global ad spend market

Global advertising spends in media is forecasted to cross $500 billion by 2011

India's current ad spend is $6 billion per annum

India is expected to contribute $1 billion plus per annum towards the global ad spend market, making it one of the fastest growing in the world By 2020, Indian Entertainment & Media industry will experience a revolution in terms of ad revenue due to double digit GDP growth, increase in content consumption & embracing digital lifestyle

Indian Media Industry overview

2010 The economy on the track

Worldwide, 2010 saw the global economy begin to recover from a steep decline in 2009

In E&M sector, India recorded one of the highest growth in the world growing at 11.2% in 2010

The E&M industry in 2010 stood at INR 646.0 billion as compared to INR 580 billion in 2009

Two key industrial segments television & prints shown good growth

Source: PWC | Industry Estimates

India Growth of the Media Industry

Growth Of the Industry INR billion Television
% Change

2006 192.2 128.0 84.5

5.0

2007 223.9
17.1

2008 244.7
9.3

2009 265.5
8.5

2010 306.5
15.4

CAGR (%) 12.5

8.7

Print % Change Film

% Change Radio

149.0 16.4 96.0

13.6 6.9

162.0 8.7 107.0

11.5 8.3

161.5 (0.3) 95.0

(11.2) 9.0

178.7 10.7 87.5

(7.9) 10.8

0.9 21.2
48.1

% Change Internet % Change

OOH 10.0

38.0 1.6 2.7 68.8

12.5

20.3 5.0 85.2

15.0

8.4 6.0 20.0

12.5

20.0 7.7 28.3

14.0

% Change Animation Etc. % Change

Music % Change 7.3

25.0 12.6 15.7 24.6

7.6 3.3

20.0 19.6 24.6

6.9 (8.2)

(16.7) 23.8 21.8

7.5 8.5

12.0 31.3 31.4

9.5 25.7

8.8
25.6

6.8 10.1

Total % Change

440.2

514.3 16.8

568.5 10.5

580.8 2.2

646.0 11.2

Source: PWC | Industry Estimates

Key Issues & trends Television

Advertising revenue growth propel the television industry DTH leads growth in distribution segment Regional channels increasing there share in TV advertising Regional players are focusing on Kids Channel Market Sports channel boosted by IPL3 & other cricketing events

Trend

Issues

Slow growth of digitization High cost of content production Low ARPUs to increase payback time

Conclusion

The industry showing a growth of 15.4% over 2009 Digitization emerging as key to success of the industry The growth of advertising volume drives television adverting to double digit

Source: PWC | Industry Estimates

India Growth of the advertising

Growth of the Indian advertising industry in 2006-2010 INR billion Television advertising
% Change

2006 66.2

2007 78.0
17.8

2008 84.2
7.9

2009 89.0
5.7

2010 101.5
14.0

CAGR (%) 11.3

Print advertising
% Change

78.0

94.0
20.5

103.5
10.1

100.0
(3.4)

113.5
13.5

9.8

Radio advertising
% Change

5.0

6.9
38.0

8.3
20.3

9.0
8.4

10.8
20.0

21.2

Internet advertising % Change

OOH advertising

1.6

2.7 68.8

5.0 85.2
15

6.0 20.0
12.5

7.7 28.3
14 48.1

10.0

12.5

% Change
Total 160.8

25.0
194.1

20.0
216.0

(16.7)
216.5

12.0
247.5

8.8 10.1

% Change

20.7

11.3

0.2

14.3

Source: PWC | Industry Estimates

2015: India Outlook

The India E&M industry is estimated to grow from INR 646.0 billion in 2010, at a CAGR of 13.2% for the next five years to reach INR 1198.9 billion in 2015 The television industry is projected to continue to be the major contributor to the overall industry revenue pie & is estimated to grow at a healthy rate of 14.5% over the next five years

Television

Print

The Indian print media is projected to grow by 9.6% over the period of 2010-15, reaching INR 282.0 billion in 2015 from present INR 178.7 billion in 2010 The magazine industry is projected to show growth of 4.8% over the next five year

Film & Radio

The Indian film industry has had two consecutive bad years in 2009 & 2010 and shown considerable decline The industry depend heavily on big films and worthwhile content. Radio industry projected to show healthy growth at CAGR of 19.2% over 2010-15, reaching INR 26 billion in 2015 from the present INR 10.8 billion in 2010

Source: PWC | Industry Estimates

2015: India Outlook

Projected growth of the Indian E&M industry in 2010-15 INR billion Television
% Change

2010 306.5 178.7 87.5

10.8

2011 353.0
15.2

2012 404.0
14.4

2013 465.0
15.1

2014 532.5
14.5

2015 602.5
13.1

CAGR (%) 14.5

9.6

Print % Change Film

% Change Radio

196.2 9.8 96.5

10.3 13.5

214.4 9.3 104.5

8.3 16.5

235.6 9.9 115.3

10.3 19.0

256.5 8.9 125.0

8.4 22.0

282.0 9.9 136.5

9.2 26.0

9.3 19.2
25.5

% Change Internet % Change

OOH 14.0

25.0 7.7 10.0 29.9

15.5

22.2 12.5 25.0

17.0

15.2 15.5 24.0

19.0

15.8 19.5 25.8

21.5

18.2 24.0 23.1

24.0

% Change Animation Etc. % Change

Music % Change 9.5

10.7 31.3 38.6 23.4

11.9 25.0

9.7 47.8 23.8

13.9 17.5

11.8 57.7 20.6

16.1 15.6

13.2 69.4 20.3

18.4 14.2

11.6 82.6 19.0

21.4 16.0

11.4
21.4

17.6 13.2

Total % Change

646.0

735.2 13.8

830.7 13.0

943.2 13.5

1064.8 12.9

1198.9 12.6

Source: PWC | Industry Estimates

The television Industry-At a glance

Television Industry-Total Revenue

Television market segmentation 2006-2010
INR billion Television distribution 2006 117.0 2007 136.5 2008 150.0 2009 165.0 2010 192.0 CAGR (%)

% Change Television advertising % Change

Television content

20.6 66.2 21.5

8.0

16.7 78.0 17.8

9.4

9.9 84.2 7.9

10.5

10.0 89.0 5.7

11.5

16.4 101.5 14.0

13

13.2 11.3 16.7 12.5

% Change Total

14.3 191.2

17.5 223.9

11.7 244.7

9.5 265.5

13.0 306.5

The distribution industry grew by 16.4 % this year aided by high growth of DTH industry & advances in digitization The advertising industry have shown positive sign with strong recovery in advertising spend & growth in advertising volume. Sectors such as FMCG, telecom & financial services have led this growth The content industry achieved a 13% growth rate, driven by the rise in non-fiction shows & growth in regional markets

Source: PWC | Industry Estimates

Television Industry-Distribution
Television distribution market 2006-2010
INR billion Television distribution 2006 117.0 2007 136.5 2008 150.0 2009 165.0 2010 192.0 CAGR (%)

% Change % of Total

20.6 61

16.7 61

9.9 61

10.0 62

16.4 63

13.2

The size of this industry was INR 192 billion in 2010, registering a growth of 16.4% over INR 165 billion in 2009 The distribution industry is the largest part of the television industry & contributes to about 63% of the television industry revenue The distribution industry revenues are a function of pay TV households & ARPU generated for each pay TV households

Source: PWC | Industry Estimates

Television Industry-TV households

Television households in India 2006-2010
Million Total households 2006 190.0 2007 195.5 2008 197.0 2009 207.0 2010 213.0

% Change TV households % Change

% TV Penetration

7.0 112.0 7.0

59.0

3.0 115.0 3.0

59.0

3.0 118.0 3.0

60.0

5.0 124.0 5.0

60.0

3.0 130.0 5.0

61.0

TV households in India increased from 124 millions in 2009 to 130 millions in 2010, at a growth rate of 5% The penetration in India in term of television household still remain low at 61% as compared to developed counties like the US & UK where the penetration around 95% & 93% respectively With changing economy expecting the number of TV household will increase

Source: TAM | PWC | Industry Estimates

Television Industry-Pay TV household in India

Pay TV households in India 2006-2010
Million Cable TV households 2006 68.0 2007 70.0 2008 71.0 2009 72.0 2010 74.0

% Change DTH households % Change

Total Pay TV households

11.0 2.0 100.0

70.0

3.0 3.5 75.0

73.5

1.0 9.0 157.0

80.0

1.0 14.0 56.0

86.0

2.8 26.0 86.0

100.0

% Change

13.0

5.0

9.0

8.0

16.0

Pay TV increased to average of 100 million in 2010, from 86 million in 2009, with a growth of 16% Growth largely led by DTH households in 2010

Source: PWC | Industry Estimates

Television Industry-TV household ARPU in India

TV household ARPU in India
INR Pay TV ARPU 2006 139.0 2007 155.0 2008 156.0 2009 160.0 2010 160.0

% Change

6.9

11.5

1.0

3.0

0.0

The growth of pay TV ARPU has not shown any growth over 2009

Source: PWC | Industry Estimates

Television Industry-Advertising revenue.

Television advertising growth for 2006-2010
INR billion TV advertising 2006 66.2 2007 78.0 2008 84.2 2009 89.0 2010 101.5 CAGR (%) 11.3

% Change % of total TV industry % of total advertising industry

21.5 35 41

17.8 35 40

7.9 34 39

5.7 34 41

14.0 33 41

Television advertising is one of the largest segment in the total advertising pie in India In 2010, the TV advertising industry grew to INR 101.5 billion registering a growth of 14% over 2009 TV advertising industry contributes 41% of total advertising industry

Source: PWC | Industry Estimates

Television Industry-Advertiser in 2010

Top sectors advertising on television
2009 % share 2010 % share

Toilet soaps Cellular phone service

Social advertisements

4 4
3

Toilet soaps Cellular phone services

Social advertisements

4 3
3

Aerated soft drinks

Shampoo

2
2

Shampoos
Cellular phones

3
2

DTH service provider Two-wheelers

Toothpastes

2 2
2

Aerated soft drinks Toothpastes

Corporate/brand image

2 2
2

Cars/jeeps Life insurance

2 2

Fairness cream DTH service providers

2 2

TV advertisement of the food & beverages sector went up by 27% during 2010, as compared to 2009 Coca Cola India Ltd was the top advertiser under the food & beverages sector Personnel care /hygiene saw a 55% rise in TV advertisement volume during 2010 as compared to 2009 Toilet soap led major contribution in personnel care category HUL had higher share among all advertisers of the personnel care sector

Source: TAM Adex

Television Industry-Top new brands & clients in 2010

Top new brands on TV during 2010
Rank New brands

Top 10 advertisers on TV on the basis of spend

Rank Advertisers

1 2
3

Colgate Total Clean Mint Airtel 3G

Cadbury Perk Glucose

1 2
3

HUL Reckitt Benkiser (India) Ltd

Cadbury India Ltd

4
5

LOreal Total Repair 5

Nokia 5233

4
5

ITC Ltd
Procter & Gamble

6 7
8

Knorr Soupy Noodles Lux Purple Lotus & Cream

Sure Dry Shield Deodorants

6 7
8

Coca Cola India Ltd Colgate Palmolive Ltd

Ponds India

9 10

Superia Lemon Fresh Soap Minute Maid Nimbu Fresh

9 10

Glaxo Smithkline L'Oreal's India Pvt. Ltd

HUL, Reckitt Benkiser Ltd & Cadbury India Ltd were the top three advertisers on TV in 2010 The top three accounted for 13% of the overall advertisement share

Source: TAM Adex

Television Industry-TV Channels.

Total channels on television in 2010
Active Channels in 2010 Regional 225 New Channels in 2010 25 Total Channels in 2010 269

Hindi English Others

Total

88 65 39
417

2 11 4
42

104 76 123
572

Total 42 new channels are introduced in 2010 Regional channels, showed the biggest increase in the number of new channels There are in all more than 264 new TV channels licenses pending with the Ministry & with TRAI, this number is bound to increase Al Jazeera also got a nod from the Information & Broadcasting Ministry for its news channel

Source: TAM

Television Industry-New TV channels in 2010

New channels in 2010
Sr. No. Network Channel Name Category

1 2
3

Astro Group Zee

BIG-CBS

Food Food Khana Khazana

Prime

Food Food
English GEC

4
5

BIG-CBS
BIG-CBS

Spark
Love

Youth Channel
Female Centric

6 7
8

FOX Discovery
Times Group

FX, FOX Crime, Nat Geo Music, Nat Geo Adventure, Nat Geo Wild, Nat Geo HD, Baby TV Discovery Science, Discovery Turbo
Movies Now

English Movies

The year 2010 are witnessed for more fragmentation of TV genre, ZEEL launched first of its kind food channel Zee Khana Khazana ADAG group tied up with global media house CBS Studio & launched three new channels in the English GEC space

Source: TAM

Television Industry-Viewership Share (%)

35 Viewership Share (%) 2010 30 25 20 15 10 5 0
Hindi GEC Regional Hindi GEC Movies Cable Kids
22.9
11.7 12 7.9

26.2 31.7 24.2

30 Viewership Share (%) 2009 25

20

15 10
5
2.9

5.5 6.5 6

6.5
4 3.4

3.7 3.6

3.4 3.8

2.8

2.4 1.9

1.7 2.5

2.8

Regional Regional Hindi Movies News News 2010 2009

Sports Regional Music

Music

Others

Hindi GEC is the largest & only shown distinct viewership growth in 2010 as compared to period 2009 Regional GEC which was running neck to neck Hindi GEC in 2009, has fallen behind in 2010 Remaining all categories are showing more or less same performance in 2010

Source: TAM Adex

Television Industry-Hindi GEC.

Number of Weeks channel remained No.1
Channel Star Plus Weeks 2010 42

Colors

10

Entry of Colors in 2009, mark impact on established channels in Hindi GEC, specially the top three players Innovative programming, differentiated content & well thought of distribution process made colors strong contender in Hindi GEC space Star underwent rebranding exercise to connect with younger audience- Rishta wahi, soch nayi While Sony invested in newer & fresher content

Source: TAM, CS4+ YRS, All India 2010

Television- Top Rated TV programs in 2010

Top rated TV programs in 2010
Sr. No. Show Channel Average Prime Time Rating (%)

1 2
3

Pavitra Rishta Yeh Rishta Kya Kehlata Hai

Uttaran

Zee TV Star Plus

Colors

5.36 5.00
4.90

4
5

Bidayi
Jhalak Dhikhla Ja-VI

Star Plus
Sony

4.55
4.43

6 7
8

Pratigya Balika Vadhu

Na Ana Is desh Laado

Star Plus Colors

Colors

4.42 4.33
4.09

DID Lil Masters

Zee TV

3.92

Fiction remains the most watched segment among the top programs In 2010 However Jhalak Dhikhla Ja-IV & DID Lil Masters, Reality shows marked their presence in top ten list

Source: TAM

Television- Reality Shows on Hindi GEC

Reality Shows on Hindi GEC
Sr. No. Genre Shows Channel

1 2
3

Celeb reality Game show

Talent hunts

Rakhi Ka Insaaf KBC

Jhalak Dikhla Ja, Indian Idol, Master Chef India, DID, India's Got Talent, Sa re Ga Ma Pa, The Great India Laughter Challenge, Boogie Woogie

Imagine TV Sony TV
Sony TV, Star Plus, Zee TV, Star One

4 5
6

Matchmaking Social Experiment

Adventure-based show

Rahul Dulhaniya Le Jayega Bigg Boss, Emotional Atyachar

Khatron Ke Khiladi, MTV Roadies

Imagine TV Colors, UTV Bindass

Colors, MTV

The year 2010 saw the non-fiction genre rise in popularity Many high profile reality shows yielded good result for the broadcaster

Source: TAM | PWC Research

Television- IPL
Effects of IPL Season IV on various channel genre GRP
Genre Pre IPL Season IV IPL Season IV Difference (%)

ENGLISH BUSINESS NEWS ENGLISH MOVIES English GEC

ENGLISH NEWS HINDI BUSINESS NEWS HINDI GEC

39 228 47.19
90 37 7364

30 243 45.63
79 28 6899

-22 7 3
-13 -24 -6

HINDI MNEWS HINDI MOVIES EXCEPT MAX HINDI MUSIC GENRE INFOTAINMENT KIDS LIFESTYLE
MAX REGIONAL

1083 1996 601 304 1632 38

743 8515

968 2177 611 283 1955 41

2376 8671

-11 9 2 -7 20 7
220 2

Today IPL is hottest property on India TV channels The average TVR for IPL season IV was 3.91, much lower than 5.51 for IPL season III Surprisingly, Hindi & English GEC has not shown adverse effect on its viewership share in IPL period IPL IV has shown negative impact on News category
Source: TAM

Television- 2011 updates

DTH penetration in India has been reached to 40 millions in 2011 Till August 2011, new channels like Mtunes, Music Express, News Express launched in Music & News category. As well UTV Star made entry on 14th August to make space in Hindi Entertainment category Mtunes & News Express are India's first HD channels in Music & News categories respectively ZEEL & Star India have come together to form a 50:50 joint venture in distribution. The company name is Media Pro Enterprise India In Bangali GEC, ABP launched first if its own channel Sananda TV. This regional TV market was dominated by Star Ananda, ET Bangla & Zee Bangla UTV Action made entry in regional market with launching its feed in Telugu language on 29th June 2011. Sri Adhikari Brothers launched three Hindi regional channels in February 2011. Dabangg & Dhamaal targeting Hindi regional markets & Dhamaal caters Gujarat market Colors were 12 times on no. one position in weeks of 2010. Till week 342011, star consistently maintained its leadership position with keeping reasonably gap for second position channel colors Hindi GEC is the largest & shows same viewership share in 2011 as compared to period 2010 Following to Star India, ZEEL underwent rebranding exercise of all its channels to connect with audience, & maintain top position in Hindi GEC space- Ummeed Se Saje Zindagi

Source: TAM | Google

The Print Industry-At a glance

Print media industry-Revenue

Growth of the print media industry in 2006-2010
INR billion Newspaper 2006 121.1 2007 131.5 2008 140.7 2009 142.8 2010 159.5 CAGR (%)

% change Magazine % change

Total 128.0

17.3 16.5 19.0 14.9

149.0

7.0 21.0 10.6

162.0

1.5 18.6 (11.5)

161.5

11.7 19.2 3.1

178.7

9.2 3.8 8.6

% change

16.4

8.7

(0.3)

10.7

The size of print industry was INR 178.7 billion in 2010, marked growth of 10.7% over the period of 2009 It was poor year for magazine industry with marginal growth in advertising & almost no change in circulation

Source: PWC | Industry Estimates

Print media industry- Revenue segmentation

Growth of the print media industry in 2006-2010
INR billion Advertisement 2006 78.0 2007 94.0 2008 103.5 2009 100.0 2010 113.5 CAGR (%)

% change Circulation % change

Total 128.0

20.5 50.7 56.5 12.0

149.0

10.1 58.3 3.0

162.0

(3.0) 61.5 5.0

161.5

13.5 65.2 6.2

178.7

9.8 6.5 9.6

% change

16.4

8.7

(0.3)

10.7

Print advertising constitute 63% of revenue for the segment, registered a growth of 13.5% in 2010 over the 2009 Circulation revenue for the print grew by 6.2% in 2010 over 2009 The growth in circulation was largely contributed by players expanding into newer geographic

Source: PWC | Industry Estimates

Sector & Category wise share in print advertising

Sector-wise share in print advertising in 2010
Top sectors Share %

Share of top categories in print advertising in 2010

Top categories Share %

Services Banking/Finance/Investments
Education

12 11
10

Educational Institutions
Social Advertisements

9
7

Properties/Real Estates Independent Retailors

Cars/Jeeps

4 4
3

Auto
Retail

7
5

Personnel Accessories Durables

Personnel Healthcare

4 4
3

Corporate/Brand Image Hospital/Clinics

Events

3 2
2

Corporate/Brand Image Media

3 2

Cellular Phones
Coaching Centers/Competitive Exams

2
2

Print ad volumes of the services sector grew by 43% during 2010 as compared to 2009 Print ad volumes of the BSFI sector grew by 50% during 2010 compared to 2009 Print ad volume of education sector grew by 6% during 2010 compared to 2009 Educational inst. , social ads & properties/real estates were the top three categories constituted 39% share of overall print ad pie

Source: TAM Adex

Key Advertisers in print advertising

Key advertisers in print in 2010
Sr. No. Top Advertisers

1 2
3

Naaptol.com Tata Motors Ltd

Maruti udyog Ltd

4
5

Pantaloons Retail India Ltd

LG Electronics India Ltd

6 7
8

Dell Computers Corporation SBI

General Motors India Ltd

9 10

Torque Pharmaceuticals Videocon Industries Ltd

Naaptol.com, operating in internet service domain, broke into top advertisers category and was the largest advertiser into print followed by Tata Motors & Maruti Udyog

Source: TAM Adex

The Radio Industry-At a glance

Radio media industry-Revenue

Growth of the radio media industry in 2006-2010
INR billion Radio Advertising 2006 5.0 2007 6.9 2008 8.3 2009 9.0 2010 10.8 CAGR (%)

% change Radio share in ad pie % 3.1

38.0 3.6

20.3 3.8

8.4 4.2

20.0 4.4

21.20

Radio advertising saw healthy growth in 2010. The size of industry was INR 10.8 billion in 2010, registering a growth of 20.0% overt the period of 2009 Radio advertising currently constitute about 4.4% of the total advertising industry

Source: PWC | Industry Estimates

Sector & Category wise share in radio advertising

Sector-wise share in radio advertising in 2010
Top sectors Rank -2009

Share of top categories in radio advertising in 2010

Top categories Rank-2009

Properties/real estate Cellular phone service

TV channel promotion

5 2
1

Vodafone Essar Ltd

Bharti Airtel Ltd

2
10

Star TV Network Pantaloons Retail India Ltd

Nokia Corporation

6 5
New

Independent retailors
Social advertisements

4
3

Cellular phones Jewellery

Educational Institutes

New 10
6

Tata Teleservices Min of Health & Family Welfare

Coca Cola India Ltd

3 9
New

Corporate/brand image Automobiles

New New

Idea Cellular Ltd

HUL

New
1

Properties/real estates was the top advertiser category on radio Vodafone was the top advertiser as telecom players increased their spend in radio Star TV rebranding itself and hence increased their promotion on radio

Source: RAM Adex | PWC Research

FM penetration 2007 vs. 2011

80% 70% FM Penetration 2007 (%) 60% 50% 40%
30% 20% 10% 0%
70% 59% 51% 88%

100%
87% 71% 63% 64%
77%

90%

59%

70% 60% 50%

40%

30% 20% 10%

0%

Mumbai

Delhi

Banglore 2007 2011

Kolkata

Overall

Radio penetration has increased from 59% in 2007 to 77% in 2011 in the four metros Delhi has observed the greatest increase in FM penetration among RAM markets

Source: Radio Establishment Survey |RAM| PWC Research

FM Penetration 2011 (%)

80%

Preferred mode of listening to radio

80% 70% FM Penetration 2007 (%) 60% 50% 40%
30% 20% 10% 0%
21% 71%

2%

1%

5%

Radio/Music System

Mobile/Portable Device

TV

Car/Stereo

Others

Radio handsets & music systems remain the most used device for radio listening This is probably because listening habit has not yet occurred in smaller town of India

Source: IRS 2010 Q4 | PWC Research

The Internet Industry-At a glance

Internet media industry-Revenue

Growth of the internet media industry in 2006-2010
INR billion Internet Advertising 2006 1.6 2007 2.7 2008 5.0 2009 6.0 2010 7.7 CAGR (%)

% change

68.8

85.2

20.0

28.3

48.1

The online advertising market is one of the fastest growing segment in the Indian E&M industry The size of the industry was INR 7.7 billion in 2010, registering a growth of 28.3% over 2009 Social media is growing to become an important form of online advertising

Source: PWC | Industry Estimates

Top social networking site in India

Top social networking site in India
Total India: Age 15+, home & work location India Total unique visitors (000)

July-2009
Total Internet: Total audience 35028

July-2010
39562

% change
13

Social networking Facebook.com

Orkut

23255 7472
17069

33158 20873
19871

43 179
16

Bharatstudent.com Yahoo! Plus

Twitter.com

4292 984

4432 3507
3341

3 239

LinkedIn.com
Zedge.net

1767

3267
3206

81

Ibibo.com

1562

2960

89

In India social networking sites have shown a remarkable growth of 43% in total unique visitors over 2009 Advertising on social media has shown a growth of 54% in 2010-11

Source: ComScore Media Matrix | PWC Research

Purpose of internet access

45% % of purpose of online access 40% 35% 30%
25% 20%
32%
25%

41%

24%

15% 10% 5% 0%
6% 5%
8% 3%

2%

2%

Travel site push economic growth on fast track Travel sites reached 37% of the online population in India in April 2010 Entertainment & Communication are major cause of internet access, 73% reached on internet for these reason

Source: IAMAI| PWC Research

Internet users: 50:50 splits in Metros-Non Metros

Increasingly, growth is coming from Non Metro towns

Source: IMRB iCube report 2010

SEC AB users are largest segment-37 millions

37% Male 63% Female

Share of Women has gradually increased from 25% to 37% of total users Online Media Plans skew towards Male, SEC AB

Source: IMRB iCube report 2010 | ComScore 2011

User profile on internet

Age break up
6% 2%

Gender

16%

35%

37%

63% 41% 15-24 25-34 35-44 45-55 55+ Male Female

Youth is driving the growth More than 75% of them are between 15 34 Male are in majority but growth % of females on the internet on an increase

Source: IMRB iCube report 2010 | ComScore 2011

User exploring the net more

Services Real Estate 45,000 Automotive 40,000
Health 35,000 30,000 Portals Social Network Search

Social networks are the new IMs and Photo sharing platforms

B2b
IM

25,000 20,000 15,000

10,000 5,000

e-mail
News

TV

Technology

0
Regional Multimedia

Internet is the new TV, 100% growth for TV sites, more than 10mm users watching TV content Moderate growth of about 35% for Retail, Travel & Finance Health & coupon category seeing an upward trend

Photos
Games

Blogs
Retail

Movies
May-11

Finance Sports Music

Career

Travel Education

Apr-10

Internet grew by 13%, avg. growth for Categories 48% indicating more consumption by same users
Source: ComScore 2011

Change in age distribution

27%

26%

22%

14%

11%

34%

41%

16%

6% 2%

15-24

25-34

35-44

45-54

55+

25-34 age has the highest share with more than 40% users of total internet

Source: ComScore 2011

Internet routine

Source: Microsoft 2011

Internet- 2011
100 Million active users by 2012 Average of 16 hours being spent online every week 100% increase in time spent in last three years 85% of internet users are in the age group of 19-40 100% growth for TV sites, more than 10 millions users watching TV content The online advertising industry is estimated to march ahead from INR 7.7 billion in 2010 to INR 24 billion in 2015 a CAGR of 25% over the next five years In January 2011, Groupon entered the Indian market with the acquisition of SoSasta.com As the national broadband policy formulated & implemented over the next three to five years, internet subscription will increase

Highlights of 2011 o Bazee com Pvt Ltd invested INR 164.8 million in Ebay India Pvt Ltd o As 3G becomes more affordable, it will give boost to mobile advertising

Source: IIMRB iCube Report | ComScore May 2011 | PWC

The Film & Music Industry-At a glance

Film industry- Revenue

Growth of the film industry in 2006-2010
INR billion Box office-domestic 2006 64.0 2007 71.5 2008 81.3 2009 70.0 2010 61.1 CAGR (%)

% change Box office-overseas % change

Home Video 6.4

11.7 7.0 8.5 21.4

7.4

13.6 10.0 17.6

5.9

(13.8) 8.0 (20.0)

6.5

(12.7) 7.7 (3.8)

5.2

(1.2) 2.4 (5.3)

17.8 0.9

% change Ancillary right % change

Total 84.4

15.3 7.0 8.5 21.4

95.9

(20.9) 10.0 17.6

107.1

11.3 10.5 5.0

95.0

(16.1) 13.5 28.6

87.5

The industry showed negative growth for second consecutive year There were 215 Hindi releases in 2010 as compared to 235 in 2009 and 1059 regional releases in 2010 as compared to 1053 in 2009

Source: PWC | Industry Estimates

Film industry- Multiples players

Snapshots of key multiplex players- Total number of screens in 2009 vs. 2010
Players Cinemax 2009 94 2010 114 Proposed addition in 2011 30

Big Cinema Fame Inox

PVR

253 95 119
148

260 97 144
175

10 40
50

Despite the lack of good quality content in film, multiplexes registered double digit growth Multiplexes experimenting schemes to increase footfalls by giving heavy discount on morning shows Newer players like Cinepolis, Mexican multiplex chain announced its entry in Indian market in 2009

Source: PWC | Industry Estimates

Music industry- Trend & conclusion

The music industry its revenue from five major streams

Physical Sales:-Revenue from cassettes, CDs, etc.. Mobile VAS:-Ring tone, caller ring back tone, songs & mobile friendly items, etc.. Radio broadcast:-Royalties from radio stations, etc.. Online download:-Sale of music through internet download Public performance royalty:-Royalty from events & other functions

Major portion of the music revenue in India comes from film Music Share of independent music album is very small The industry is currently estimated to be INR 9.5 billion in 2010 as compared to INR 7.5 billion in 2009, growth of 25.7% Mobile is expected to continue to be major growth driver for the music industry Mobile VAS would contributes around 75% in the total revenue in 2015 Physical sales are expected to decline in the coming years

Source: PWC | Industry Estimates

OOH industry- Trend & conclusion

Growth of the Indian OOH industry in 2006-2010
INR billion OOH Advertising 2006 10.0 2007 12.5 2008 15.0 2009 12.5 2010 14.0 CAGR (%)

% change OOH share in ad pie (%) 6.2

25.0 6.4

20.0 6.9

(16.7) 5.8

12.0 5.7

8.8

The industry was estimated to be INR 14 billion in 2010 showing a growth of 12% over 2009. Telecom, BFSI, E&M & FMCG were among the top advertisers for 2010 Digital OOH is the next growth medium for the industry Focus is shifting from the number of screens to the quality and quantity of audience OOH players offering innovative & customized solutions to advertisers for specific target audience OOH players are focusing on ROI rather than on increasing the number of properties

Source: PWC | Industry Estimates

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