India Media and Entertainment Industry; Radio, Television and Broadcast

  • April 2013
  • -
  • East West Relations Limited
  • -
  • 54 pages

The India TV & Radio industry is undergoing huge change. Digitisation is changing the market landscape and opening opportunities for foreign media companies.
Find out what your competitors are up to and how your company can participate in this growing market.

Coverage includes:

- Television channels and broadcasters/Major Private FM operators
- Digitisation trends, challenges
- Key Players (see table of contents for full listing)
- Content production
- Regulatory Implications
- Multi-Service Operators (Cable Distribution Companies) Local Cable Operators (Lcos)
- Future Outlook

If you're a media owner looking to enter the Indian TV or Radio market or need to keep abreast of key changes and developments this is the report you need to keep you up-to-date in this fast moving, lucrative market.

Executive Summary Indian Television Industry

The Indian Television sector is the third largest in the world in terms of the number of TV Households and has become the preferred advertising medium in India during the past few years. The television sector has been growing at between 12-15% in recent years resulting in an increased share of advertising compared to other advertising media. The TV industry is currently estimated to be worth USD 6.5 billion.

The impending roll out of nationwide digitization of content distribution has opened up a whole new business opportunity and better revenue realizations to all the stakeholders especially for the broadcasters and higher tax collection for the government. Though advertising revenue, which is the largest revenue stream for the television industry, is facing sluggish growth currently due to the economic slowdown, the prospect of higher subscriber revenues post digitization is making the industry optimistic about the future.

The television industry in India, as elsewhere, consists of three basic internal stakeholders:
- Distribution
- Channels
- Content and Rights

All three segments are undergoing a major transformation in terms of regulation, technology or market dynamics. The role, market drivers and challenges faced by respective stakeholder segments is discussed at length in the subsequent sections.

Distribution

Despite reaching 150 million households, the overall TV penetration in India remains low at 63% and is growing steadily in line with economic growth and disposable income. The share of Cable and Satellite based distribution continues to be most popular mode of distribution accounting for 80% share among TV households. Direct to Home (DTH), currently accounts for a smaller share but has been the fastest growing mode and holds more promise, reaching approximately 40m households out of the 150m TV households. The DTH industry consists of six large players with pan India presence.
About 30 Mn rural and remote households still use terrestrial mode to view state owned channels. The analog cable sector is on the verge of migration to digital. Technological constraints in analog cable, with limitations in channel carrying capacity as well as poor quality of signals is driving end users to shift to set top box enabled digital cable and DTH to receive customized and high quality content. Irrespective of the regulation making digitization mandatory, the sector wide consolidation has made local cable operators (LCO) an endangered tribe. Digitization means that end users can view any number of channels and broadcasters too will get their correct share of subscription revenue, which was previously suppressed through ‘leakage’ at the LCO level. It is anticipated that each of the suppliers in the chain will improve their average revenue per user. Multi System Operators (MSO), who aggregate content and distribute to LCOs are expected to play a large and key role in digital era. Acquisition of smaller LCOs and consolidating their position against DTH players will require huge investment in upgrading their technological infrastructure. The future unfolding battle will be between the technologically superior DTH with a cost effective network on the one hand and the large customer base of digital cable MSOs on the other.

Television Channels (Broadcasters):

India has seen proliferation in the number of channels over the last five years with over 825 active channels, but revenue is concentrated in a few and profitability in the hands of even fewer
Primarily the leading Hindi and Local language GECS. This has been primarily due to constraints imposed by analog technology in carrying about 60 channels to the end viewers and upon offering differentiated channel packages to consumers. Those popular channels which have been carried by analog cable have generated high TV viewer ratings and a consequent dominance of ad revenues. Digitization is expected to even the playing field somewhat and to improve the economics of minority and specialist channels. The channels which were at the mercy of LCOs, post digitization will be able to reach their end user and offer niche content for both subscription revenues and targeted ad revenues. However, if the pace of digitization is delayed, established television channels will in the meantime have no option but to depend on ad revenues as their main revenue source and not on subscriber revenues. Given the prolonged lull in corporate ad spend in television and a hike in the production cost of content, some channels may be forced to look at a consolidation route for survival.
Convergence of digital technologies is also presenting a new revenue stream opportunity for broadcasters to repurpose and monetize content using new digital delivery platforms such as smart phones, thereby prolonging the shelf life of content.

Content & Rights:

Low cost content production has been the focus of most of the television channels. Most content has been produced in house by TV channels and there are few large size external content production houses in India. Outsourced TV content usually accounts for about 4-5% of the television industry size. The growth has mainly come from the recent proliferation of channels. The production budgets for Hindi and regional fiction shows are lower compared to international standards. However, low advertising revenues on account of poor viewership and in other cases high carriage fees paid to LCOs to be part of the analog band has resulted in severe competition and low margins for the broadcasters as advertisers get enough choice to shop around for great bargains. As a result, broadcasters have had no option but to restrict content costs, the only aspect which is well within their control. Rise in non-fiction shows like reality shows, cricket and films are the only exceptions to this trend due to their high popularity among viewers. Digitization is expected to change the content landscape as well as the broadcasting landscape.We believe that the opportunities for international media companies exist mainly in the area of channel partnerships & content development and for the digital exploitation of content.

Executive Summary Indian Radio Industry

Market developments "Out of home listenership".
India is the fastest growing wireless market, with almost half of the mobile phones population having a built-in FM radio, in addition to transistors/radio sets and car audio systems. The fact that a large chunk of radio listenership is on portable devices and happens out of home, augurs well for future industry growth.
With an increasing number of Radio-enabled mobile phones in the affordable price range, users in metros are switching from traditional radio sets to mobile phones as their primary mode of radio-listening.

According to Industry sources, the current radio penetration levels are estimated to be ~35-38% overall and ~77% in Metros. The figures in the graph below from the TAM’s Radio Measurement clearly indicate the potential of radio, given a significant increase in FM population (barring Kolkata) in Metros.





Table Of Contents

1. Executive Summary 04
a) The Macro-Economic Outlook 04
People and Demographics - Growing Middle Classes
b) The Media Economy 05
2. Macro-Economic Overview 08
a) Overview 08
b) The Indian Consumer Landscape 13
Share of Average Household Consumption
Four Key Segments
Composition of Consumption Expenditure Across Segments
Future Outlook
The Indian Television Industry 25
a) Executive Summary 25
Distribution
Television Channels (Broadcasters)
Content and Rights
b) Macro Market View 27 Drivers/Considerations
c) Distribution: DTH and Cable 31
Overview DTH (Distribution - Satellite/Direct to Home) Cable
En Route to Digitization: Trends, Concerns and Challenges
Key Players
Indian Television Industry - Stakeholder Revenue Chain
d) Television Channels 37
Broadcasting
e) Content Production 41
Overview Key Players
f) Regulatory Implications 47
Broadcasters
Multi-Service Operators (Cable Distribution Companies)
Local Cable Operators (Lcos)
Customers
4. The Indian Radio Industry 49
a) Overview 49 Market Developments
b) Major Private FM Operators 52
c) Key Challenges and Future Outlook 52
Future Outlook

Companies mentioned

ISRO Indian Space Research Organisation
TRAI Telecom Regulatory Authority of India
Bharti Airtel group
Tata Group
British Sky Broadcasting
Anil Dhirubhai Ambani Group
Zee Network Enterprise
Videocon Enterprises
SUN TV Network
Sun Network
TV 18 group
Prime Connect
Times group
Hathaway
DEN
Digicable
WWIL
Asianet
IndusInd Media and Communication
KAL Cables (Sumangali)
Ortel
Zee Entertainment Enterprises Limited
Network 18 group
SUN Network Group AKA SUN 18
Star Den Networks
Zee-Turner
Turner International India Pvt Ltd
OneAlliance
Doordarshan
Balaji Telefilms
Endemol India
Optymystix
BIG Synergy
Vikatan Televistas
Sphere Origins
Contiloe
Sri Adhikari Brothers
Radaan
Media
UTV
BIG Synergy
Bharti Airtel
Hungama Mobile
iBiquity Digital Corporation
ADAG Group
Sun TV Networks
Times of India Group
Music Brodcast
Dainik Bhaskar Corp.
BAG Films and Media
Dainik Jagran Group
Malar Publications
Mid-Day Multimedia
Adlabs Radio
Kal Radio, South Asia
ENIL
MBPL
Synergy Media
BAG Infotainment
Dainik Jagran
Radio Mid-Day
Supreme Court of India
Nielson’s TAM group
Indian Readership Survey (IRS)

Products mentioned

Dish TV
SUN Direct
Airtel Digital TV
Tata Sky (JV Tata Group, British Sky Broadcasting)
Reliance Big TV
Videocon D2H
MediaPro
Sun TV 18
STAR Plus
Zee TV
Colors
Sony
SAB TV
Sahara One
Aaj Tak
Zee News
ABP News
NDTV India
Star Gold
Set Max
Zee Cinema
UTV Movies
CNBC Awaaz
Zee Business
NDTV Profit
CNBC-TV18
UTV Bloomberg
ET Now
NDTV 24x7
CNN-IBN
Times Now
BBC World
STAR Movies
HBO Sony Mix
Movies Now
KTV
Gemini Movies
UTV Action Telugu
SUN TV
Jaya TV
Stay Vijay
ETV
ETV Marathi
ETV Bangla
Sun Music
MAA Music
SS Music
Sun News
Jaya Plus
ETV Rajastan
OTV
Zoom TV
Home Shop18
TLC
FTV
NDTV-Good Times
ESPN-Star Sports
TEN Sports
New Sports
Sony Six
MTV
Channel V
B4U Music
VH1
9XM
Sony Mix
Cartoon Network
Pogo
Disney
Hungama TV
Discovery
National Geographic
Animal Planet
Aastha
Sanskar
Saadhna
Zee Jagran
Viacom18 channels
Network18 channels
Disney channels
20 Sun Network channels
Bigg Boss (TV Programme)
Kaun Banega Crorepati (TV Programme)
Sacch Ka Saamna (TV Programme)
Iss Jungle Se Mujhe Bachao (TV Programme)
Khatron Ke Khiladi (TV Programme)
Fear Factor (Indian version)
Radio Mirchi
Mirchi Mobile
Vh1 (International Music Channel
Radio GAGA
Big FM
Red FM
Surya Radio
Radio City
My FM
Radio Dhamaal
Mantra
Hello FM
Radio One
Radio Audience Measurement (RAM)

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