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Indian Media Scene

September’2011

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

Radio Industry

Total revenue

Top sectors & categories on radio

FM penetration 2007 vs. 2011

Mode of listening to radio

Internet Industry

Total revenue

Top social networking sites

Purpose of internet access

Users profile

Internet 2011

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 INDIA

( All figs in Millions. Excl of %)

Population 1210.2 Million

Population Under 15 29.7%

Literacy Rate 74%

Exchange Rates 45.35 (Rs per US$)

No of Households 213m

Average no. per household 5.0

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

The Economic Construct

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

Parameters INDIA

GDP $1.53 trillion

Origins of GDP % of total

Agriculture 18.5%

Industry 26.3%

Services 55.2%

Structure of Employment % of total

Agriculture 52%

Industry 14%

Services 34%

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

Source: PWC | Industry Estimates

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

India – Growth of the Media Industry


Growth Of the Industry

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Television 192.2 223.9 244.7 265.5 306.5 12.5

% Change 17.1 9.3 8.5 15.4

Print 128.0 149.0 162.0 161.5 178.7 8.7

% Change 16.4 8.7 (0.3) 10.7

Film 84.5 96.0 107.0 95.0 87.5 0.9

% Change 13.6 11.5 (11.2) (7.9)

Radio 5.0 6.9 8.3 9.0 10.8 21.2

% Change 38.0 20.3 8.4 20.0

Internet 1.6 2.7 5.0 6.0 7.7 48.1

% Change 68.8 85.2 20.0 28.3

OOH 10.0 12.5 15.0 12.5 14.0 8.8

% Change 25.0 20.0 (16.7) 12.0

Animation Etc. 12.6 15.7 19.6 23.8 31.3 25.6

% Change 24.6 24.6 21.8 31.4

Music 7.3 7.6 6.9 7.5 9.5 6.8

% Change 3.3 (8.2) 8.5 25.7

Total 440.2 514.3 568.5 580.8 646.0 10.1

% Change 16.8 10.5 2.2 11.2

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

• Slow growth of digitization • High cost of content production

• Low ARPUs to increase payback time

Issues

• 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

Conclusion

India – Growth of the advertising


Growth of the Indian advertising industry in 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Television advertising 66.2 78.0 84.2 89.0 101.5

11.3 % Change 17.8 7.9 5.7 14.0

Print advertising 78.0 94.0 103.5 100.0 113.5

9.8 % Change 20.5 10.1 (3.4) 13.5

Radio advertising 5.0 6.9 8.3 9.0 10.8

21.2 % Change 38.0 20.3 8.4 20.0

Internet advertising 1.6 2.7 5.0 6.0 7.7

48.1 % Change 68.8 85.2 20.0 28.3

OOH advertising 10.0 12.5 15 12.5 14

8.8 % Change 25.0 20.0 (16.7) 12.0

Total 160.8 194.1 216.0 216.5 247.5 10.1

% Change 20.7 11.3 0.2 14.3

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

• 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

Print

• 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

Film & Radio

2015: India Outlook


Projected growth of the Indian E&M industry in 2010-15

INR billion 2010 2011 2012 2013 2014 2015 CAGR (%)

Television 306.5 353.0 404.0 465.0 532.5 602.5 14.5

% Change 15.2 14.4 15.1 14.5 13.1

Print 178.7 196.2 214.4 235.6 256.5 282.0 9.6

% Change 9.8 9.3 9.9 8.9 9.9

Film 87.5 96.5 104.5 115.3 125.0 136.5 9.3

% Change 10.3 8.3 10.3 8.4 9.2

Radio 10.8 13.5 16.5 19.0 22.0 26.0 19.2

% Change 25.0 22.2 15.2 15.8 18.2

Internet 7.7 10.0 12.5 15.5 19.5 24.0 25.5

% Change 29.9 25.0 24.0 25.8 23.1

OOH 14.0 15.5 17.0 19.0 21.5 24.0 11.4

% Change 10.7 9.7 11.8 13.2 11.6

Animation Etc. 31.3 38.6 47.8 57.7 69.4 82.6 21.4

% Change 23.4 23.8 20.6 20.3 19.0

Music 9.5 11.9 13.9 16.1 18.4 21.4 17.6

% Change 25.0 17.5 15.6 14.2 16.0

Total 646.0 735.2 830.7 943.2 1064.8 1198.9 13.2

% Change 13.8 13.0 13.5 12.9 12.6

The television Industry-At a glance

Television Industry-Total Revenue


Television market segmentation 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Television distribution 117.0 136.5 150.0 165.0 192.0 13.2

% Change 20.6 16.7 9.9 10.0 16.4

Television advertising 66.2 78.0 84.2 89.0 101.5 11.3

% Change 21.5 17.8 7.9 5.7 14.0

Television content 8.0 9.4 10.5 11.5 13 16.7

% Change 14.3 17.5 11.7 9.5 13.0

Total 191.2 223.9 244.7 265.5 306.5 12.5

• 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

Television Industry-Distribution


Television distribution market 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Television distribution 117.0 136.5 150.0 165.0 192.0 13.2

% Change 20.6 16.7 9.9 10.0 16.4

% of Total 61 61 61 62 63

• 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

Television Industry-TV households

Source: TAM | PWC | Industry Estimates

Television households in India 2006-2010

Million 2006 2007 2008 2009 2010

Total households 190.0 195.5 197.0 207.0 213.0

% Change 7.0 3.0 3.0 5.0 3.0

TV households 112.0 115.0 118.0 124.0 130.0

% Change 7.0 3.0 3.0 5.0 5.0

% TV Penetration 59.0 59.0 60.0 60.0 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

Television Industry-Pay TV household in India


Pay TV households in India 2006-2010

Million 2006 2007 2008 2009 2010

Cable TV households 68.0 70.0 71.0 72.0 74.0

% Change 11.0 3.0 1.0 1.0 2.8

DTH households 2.0 3.5 9.0 14.0 26.0

% Change 100.0 75.0 157.0 56.0 86.0

Total Pay TV households 70.0 73.5 80.0 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

Television Industry-TV household ARPU in India


TV household ARPU in India

INR 2006 2007 2008 2009 2010

Pay TV ARPU 139.0 155.0 156.0 160.0 160.0

% Change 6.9 11.5 1.0 3.0 0.0

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

Television Industry-Advertising revenue.


Television advertising growth for 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

TV advertising 66.2 78.0 84.2 89.0 101.5 11.3

% Change 21.5 17.8 7.9 5.7 14.0

% of total TV industry 35 35 34 34 33

% of total advertising industry 41 40 39 41 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

Television Industry-Advertiser in 2010

Source: TAM Adex

Top sectors advertising on television

2009 % share 2010 % share

Toilet soaps 4 Toilet soaps 4

Cellular phone service 4 Cellular phone services 3

Social advertisements 3 Social advertisements 3

Aerated soft drinks 2 Shampoos 3

Shampoo 2 Cellular phones 2

DTH service provider 2 Aerated soft drinks 2

Two-wheelers 2 Toothpastes 2

Toothpastes 2 Corporate/brand image 2

Cars/jeeps 2 Fairness cream 2

Life insurance 2 DTH service providers 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

Television Industry-Top new brands & clients in 2010

Source: TAM Adex

Top new brands on TV during 2010

Rank New brands

1 Colgate Total Clean Mint

2 Airtel 3G

3 Cadbury Perk Glucose

4 L’Oreal Total Repair 5

5 Nokia 5233

6 Knorr Soupy Noodles

7 Lux Purple Lotus & Cream

8 Sure Dry Shield Deodorants

9 Superia Lemon Fresh Soap

10 Minute Maid Nimbu Fresh

• 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

Top 10 advertisers on TV on the basis of spend

Rank Advertisers

1 HUL

2 Reckitt Benkiser (India) Ltd

3 Cadbury India Ltd

4 ITC Ltd

5 Procter & Gamble

6 Coca Cola India Ltd

7 Colgate Palmolive Ltd

8 Ponds India

9 Glaxo Smithkline

10 L'Oreal's India Pvt. Ltd

Television Industry-TV Channels.

Source: TAM

Total channels on television in 2010

Active Channels in 2010 New Channels in 2010 Total Channels in 2010

Regional 225 25 269

Hindi 88 2 104

English 65 11 76

Others 39 4 123

Total 417 42 572

• 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

Television Industry-New TV channels in 2010

Source: TAM

New channels in 2010

Sr. No. Network Channel Name Category

1 Astro Group Food Food Food

2 Zee Khana Khazana Food

3 BIG-CBS Prime English GEC

4 BIG-CBS Spark Youth Channel

5 BIG-CBS Love Female Centric

6 FOX FX, FOX Crime, Nat Geo Music, Nat Geo Adventure, Nat Geo Wild, Nat Geo HD, Baby TV -

7 Discovery Discovery Science, Discovery Turbo -

8 Times Group 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

Television Industry-Viewership Share (%)

Source: TAM Adex

31.7

22.9

12

6.5 6

3.4 3.6 3.8 2.8

1.9 2.5 2.9

26.2

24.2

11.7

7.9

5.5 4 3.7 3.4 2.8 2.4 1.7

6.5

0

5

10

15

20

25

30

0

5

10

15

20

25

30

35

HindiGEC

RegionalGEC

HindiMovies

Cable Kids RegionalMovies

RegionalNews

HindiNews

Sports RegionalMusic

Music Others

Vie

wers

hip

Shar

e (

%)

2009

Vie

wers

hip

Shar

e (

%)

2010

2010 2009

• 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

Television Industry-Hindi GEC.

Source: TAM, CS4+ YRS, All India 2010

Number of Weeks channel remained No.1

Channel Weeks 2010

Star Plus 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

Television- Top Rated TV programs in 2010

Source: TAM

Top rated TV programs in 2010

Sr. No. Show Channel Average Prime Time Rating (%)

1 Pavitra Rishta Zee TV 5.36

2 Yeh Rishta Kya Kehlata Hai Star Plus 5.00

3 Uttaran Colors 4.90

4 Bidayi Star Plus 4.55

5 Jhalak Dhikhla Ja-VI Sony 4.43

6 Pratigya Star Plus 4.42

7 Balika Vadhu Colors 4.33

8 Na Ana Is desh Laado Colors 4.09

9 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

Television- Reality Shows on Hindi GEC

Source: TAM | PWC Research

Reality Shows on Hindi GEC

Sr. No. Genre Shows Channel

1 Celeb reality Rakhi Ka Insaaf Imagine TV

2 Game show KBC Sony TV

3 Talent hunts 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

Sony TV, Star Plus, Zee TV, Star One

4 Matchmaking Rahul Dulhaniya Le Jayega Imagine TV

5 Social Experiment Bigg Boss, Emotional Atyachar Colors, UTV Bindass

6 Adventure-based show Khatron Ke Khiladi, MTV Roadies Colors, MTV

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

Television- IPL

Source: TAM

Effects of IPL Season IV on various channel genre GRP

Genre Pre IPL Season IV IPL Season IV Difference (%)

ENGLISH BUSINESS NEWS 39 30 -22

ENGLISH MOVIES 228 243 7

English GEC 47.19 45.63 3

ENGLISH NEWS 90 79 -13

HINDI BUSINESS NEWS 37 28 -24

HINDI GEC 7364 6899 -6

HINDI MNEWS 1083 968 -11

HINDI MOVIES EXCEPT MAX 1996 2177 9

HINDI MUSIC GENRE 601 611 2

INFOTAINMENT 304 283 -7

KIDS 1632 1955 20

LIFESTYLE 38 41 7

MAX 743 2376 220

REGIONAL 8515 8671 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

Television- 2011 updates

Source: TAM | Google

• 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 34’2011, 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”

The Print Industry-At a glance

Print media industry-Revenue


Growth of the print media industry in 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Newspaper 121.1 131.5 140.7 142.8 159.5 9.2

% change 17.3 7.0 1.5 11.7

Magazine 16.5 19.0 21.0 18.6 19.2 3.8

% change 14.9 10.6 (11.5) 3.1

Total 128.0 149.0 162.0 161.5 178.7 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

Print media industry- Revenue segmentation


Growth of the print media industry in 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Advertisement 78.0 94.0 103.5 100.0 113.5 9.8

% change 20.5 10.1 (3.0) 13.5

Circulation 50.7 56.5 58.3 61.5 65.2 6.5

% change 12.0 3.0 5.0 6.2

Total 128.0 149.0 162.0 161.5 178.7 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

Sector & Category wise share in print advertising

Source: TAM Adex

Sector-wise share in print advertising in 2010

Top sectors Share %

Services 12

Banking/Finance/Investments 11

Education 10

Auto 7

Retail 5

Personnel Accessories 4

Durables 4

Personnel Healthcare 3

Corporate/Brand Image 3

Media 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

Share of top categories in print advertising in 2010

Top categories Share %

Educational Institutions 9

Social Advertisements 7

Properties/Real Estates 4

Independent Retailors 4

Cars/Jeeps 3

Corporate/Brand Image 3

Hospital/Clinics 2

Events 2

Cellular Phones 2

Coaching Centers/Competitive Exams 2

Key Advertisers in print advertising

Source: TAM Adex

Key advertisers in print in 2010

Sr. No. Top Advertisers

1 Naaptol.com

2 Tata Motors Ltd

3 Maruti udyog Ltd

4 Pantaloons Retail India Ltd

5 LG Electronics India Ltd

6 Dell Computers Corporation

7 SBI

8 General Motors India Ltd

9 Torque Pharmaceuticals

10 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

The Radio Industry-At a glance

Radio media industry-Revenue


Growth of the radio media industry in 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Radio Advertising 5.0 6.9 8.3 9.0 10.8 21.20

% change 38.0 20.3 8.4 20.0

Radio share in ad pie % 3.1 3.6 3.8 4.2 4.4

• 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

Sector & Category wise share in radio advertising

Source: RAM Adex | PWC Research

Sector-wise share in radio advertising in 2010

Top sectors Rank -2009

Properties/real estate 5

Cellular phone service 2

TV channel promotion 1

Independent retailors 4

Social advertisements 3

Cellular phones New

Jewellery 10

Educational Institutes 6

Corporate/brand image New

Automobiles New

• 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

Share of top categories in radio advertising in 2010

Top categories Rank-2009

Vodafone Essar Ltd 2

Bharti Airtel Ltd 10

Star TV Network 6

Pantaloons Retail India Ltd 5

Nokia Corporation New

Tata Teleservices 3

Min of Health & Family Welfare 9

Coca Cola India Ltd New

Idea Cellular Ltd New

HUL 1

FM penetration 2007 vs. 2011

Source: Radio Establishment Survey |RAM| PWC Research

51%

59%

71%

63% 59%

70%

88% 87%

64%

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Mumbai Delhi Banglore Kolkata Overall

FM

Penetr

atio

n 2

011 (%

)

FM

Penetr

atio

n 2

007 (%

)

2007 2011

• 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

Preferred mode of listening to radio

Source: IRS 2010 Q4 | PWC Research

71%

21%

2% 1% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Radio/Music System Mobile/PortableDevice

TV Car/Stereo Others

FM

Penetr

atio

n 2

007 (%

)

%

• 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

The Internet Industry-At a glance

Internet media industry-Revenue


Growth of the internet media industry in 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Internet Advertising 1.6 2.7 5.0 6.0 7.7 48.1

% change 68.8 85.2 20.0 28.3

• 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

Top social networking site in India

Source: ComScore Media Matrix | PWC Research

Top social networking site in India

Total India: Age 15+, home & work location

India Total unique visitors (‘000)

July-2009 July-2010 % change

Total Internet: Total audience 35028 39562 13

Social networking 23255 33158 43

Facebook.com 7472 20873 179

Orkut 17069 19871 16

Bharatstudent.com 4292 4432 3

Yahoo! Plus - 3507 -

Twitter.com 984 3341 239

LinkedIn.com - 3267 -

Zedge.net 1767 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

Purpose of internet access

Source: IAMAI| PWC Research

41%

32%

25% 24%

6% 5% 3% 2% 2%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

% o

f purp

ose

of

onlin

e a

ccess

• 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

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

Source: IMRB iCube report 2010

Increasingly, growth is coming from Non Metro towns

SEC AB users are largest segment-37 millions

63%

37%

Male

Female

Online Media Plans skew towards Male, SEC AB

Share of Women has gradually increased from 25% to 37% of total users

Source: IMRB iCube report 2010 | ComScore 2011

User profile on internet

35%

41%

16%

6% 2%

Age break up

15-24 25-34 35-44 45-55 55+

63%

37%

Gender

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

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

ServicesPortals

Social Network

Search

e-mail

News

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May-11

Apr-10

Social networks are the new IM’s and Photo sharing platforms

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

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

Source: ComScore 2011

Change in age distribution

Source: ComScore 2011

34%

27%

41%

26%

16%

22%

6%

14%

2%

11%

15-24 25-34 35-44 45-54 55+

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

Internet ‘routine’

Source: Microsoft 2011

Internet- 2011

Source: IIMRB iCube Report | ComScore May 2011 | PWC

• 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

The Film & Music Industry-At a glance

Film industry- Revenue


Growth of the film industry in 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

Box office-domestic 64.0 71.5 81.3 70.0 61.1 (1.2)

% change 11.7 13.6 (13.8) (12.7)

Box office-overseas 7.0 8.5 10.0 8.0 7.7 2.4

% change 21.4 17.6 (20.0) (3.8)

Home Video 6.4 7.4 5.9 6.5 5.2 (5.3)

% change 15.3 (20.9) 11.3 (16.1)

Ancillary right 7.0 8.5 10.0 10.5 13.5 17.8

% change 21.4 17.6 5.0 28.6

Total 84.4 95.9 107.1 95.0 87.5 0.9

• 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

Film industry- Multiples players


Snapshots of key multiplex players- Total number of screens in 2009 vs. 2010

Players 2009 2010 Proposed addition in 2011

Cinemax 94 114 30

Big Cinema 253 260 -

Fame 95 97 10

Inox 119 144 40

PVR 148 175 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

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

OOH industry- Trend & conclusion


• 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

Growth of the Indian OOH industry in 2006-2010

INR billion 2006 2007 2008 2009 2010 CAGR (%)

OOH Advertising 10.0 12.5 15.0 12.5 14.0 8.8

% change 25.0 20.0 (16.7) 12.0

OOH share in ad pie (%) 6.2 6.4 6.9 5.8 5.7

Enquiries

Aidem Venture Pvt Ltd.

Kaledonia,

Andheri Sahar Road

Near Andheri Station

Andheri East

Mumbai – 400069

India

Contact no. +91. 2266665000

www.aidem.in

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