MEDIA AND ENTERTAINMENT OVER INTERNETSyndicate 11

• Indian entertainment and media industry can be categorised as:1. Television2. Music3. Radio4. Print(Newspapers and magazines)5. Live entertainment• Online Entertainment has not only grown into a multi-million dollar business but it has

become a big part of our everyday lives due to its easy availability and accessibility.

• Online access not only reduces the capex and opex but also is a multi device support.(PC,smartphone,tablets,etc.)

• Media and Entertainment industry is one of the most flourishing sector of India because of big data leveraging.

• Effective advertising and social media effect has increased the influence.

ENTERTAINMENT AND MEDIA OVER INTERNET-THE DRIVERS

LIST OF FIGURESIn India(in millions) The Times of India –

12,715 HT media ltd- 10,721 India Today group-8,219 Jagran Sites- 7,676

In Millions of Dollars

Print Online Total

2003 44,939 1,216 46,155

2004 46,703 1,541 48,244

2005 47,408 2,027 49,435

2006 46,611 2,664 49,275

2007 42,209 3,166 45,375

2008 34,740 3,109 37,848

2009 24,821 2,743 27,564

2010 22,795 3,042 25,838

2011 20,692 3,249 23,941

2012 18,931 3,370 22,314

Source: Newspaper Association of America

Top 10 Online Newspapers Worldwide Ranked by Unique Visitors (000)

Advance Digital 22,340

Hearst Newspapers 24,174

Washingtonpost.com 26,007

Xinhua News Agency 29,987

Telegraph Media Group 30,083

People's Daily Online 33,026

Tribune Newspapers 35,862

The Guardian 38,931

The New York Times Brand 48,695

Mail Online 50,067

INDIATIMES.COM-TRANSFORMATION AND THE REASONS

NewsEntertainmentLifestyleAstrologyPhoto galleryTechnologySportsMatrimonialDaily deals

Features being offered• Shutterbugs• Box TV• Weekly Newsletter • Videos• Shopping• Sports Updates• Contests

Reasons for the Transformation• Use of tablets and e-redaers

for books, magazines and newspapers have doubles in a year.• 44% of tablet users read

newspapers on a digital device.

• 27% of the tablet users read magazines content on a digital device.

• Readership of magazine and newspaper content on smartphones and tablets has doubled over the years.

• Readership of publisher content on mobile apps has grown by 30%.

• Most of th population(15+) now own a smartphone or a tablet.

EVOLUTION OF TELEVISION INDUSTRY

SATELLITE BROADCASTING (DTH)

Challenges in DTH industry• Restrictive regulations• An unorganized value chain and • In terms of technology, return path is not possible in the case of DTH. This

limits the latter’s scope to provide value-added services and dual play.

DTH Value Chain

INTERNET (IPTV)IPTV is:• A different, improved technology than traditional cable or satellite TV, and• Allows for more flexibility within the network.

•IPTV Enables two-way interactivity, versus a traditional, one-way cable or satellite broadcast network. The two-way IPTV network means viewers have more options to interact, personalize and control their viewing experience.

IPTV services have three main features:• Video on demand (VOD)- Each user is given the option to choose from a catalog of videos and watch them as many times as required.

• DVR: IPTV allows users to watch TV shows broadcast in the past using digital video recorder (DVR), which is also known as time shifted programming. There is a live DVR system at the provider’s end, making DVR more cost effective and efficient. Users can watch replays or start a TV program over from an interactive menu.

• Live Television: IPTV allows users to watch live transmissions with minimal latency. It provides live television broadcasts either with or without interactivity, without being just like traditional TV broadcasts.

Key Drivers of IPTV

Interactivity Value added services Customer-end benefit Fuelling broadband demand

Challenges of IPTV in India

Broadband penetration and n/w capability

Physical Infrastructure QOS (Quality of service) Content Readiness and cost Cost of service for user Regulatory framework Not Enough push from Telcos

Value Chain of IPTV

OTT BROADCASTING Delivery of video content over the

internet Provides a non-linear TV experience No control by traditional content

distributors Replaced physical DVDs and time-

shifted TV programs An attractive content library-the

success factor Smart TV sets aggregate content

from a variety of sources, including OTT video services, such as Netflix or YouTube

RECOMMENDED ACTIONS Telecom operators and OTT Broadcasting OTT video and Pay TV- Relatively better growing markets. Use the potential to differentiate through such a service. Remain competitive against convergent players. Upselling contentCable TV and DTH operators Secure premium content rights Stand-alone business model, locking-in own subscribers by acquiring multi-screen rights. Triple-play offerings to provide access to services outside of the home for existing

customers. Push of High Definition propositions and 3D TV- An attractive defense strategy against

OTT players.Broadcasters Forging a partnership with a player contributing a large subscriber base Broadcasters should consider acquiring combined OTT/ broadcasting rights

CHALLENGES FOR OTT TV Hours of unsatisfied television viewing appetite without cable or satellite pay TV

Economic scale to create or acquire enough content to replace incumbent pay television providers

Variety of content lacking The advertisement revenue model not in place Data caps Consequently, content rights are negotiated on a piece-by-piece, geography-by-geography, business-model-by-business-model basis.

GOOGLE TV & APPLE TV

??What is Google TV and Apple TV?? They are small network appliance designed to play digital content from the iTunes Store, 

Netflix, Hulu Plus, YouTube, Flickr, iCloud

??Why??•YouTube generate $5.6 billion (buoyed by $3 billion generated via Google TV)

Apple takes $3m daily from TV and movies: Revenue Share : 70:3013 m Devices Sold

APPLE TV & GOOGLE TV

Apple TV

Google TV:From Logitech

Ecosystem

Money Flow

Google TV/Apple TV

Google TV/Apple TV

Drivers Gravity creates Gravity(Different for both apple and Google) Big DataGetting Consumer insights Increas in On Demand ServicePeople want everything ready to use on all devices

Resistance ABC NBC HULU

Old Value Chain

New Value Chain

Support• Netflix• HBO• Amazon• You Tube

UFO MOVIEZ INDIA•B2B business model•Uses a unique pay-per-show business model•UFO Moviez India Limited is an India based company and the world’s largest satellite networked digital cinema chain•The company digitally crunches the film to a smaller size and from its server in Gurgaon(Haryana) it is uplinked on internet and transmitted to cinema theatres via satellite•UFO thereby acts as an intermediary between the distributor and the theatre owner

Benefits:Producer: Nominal one time investment for Digital Prints, first day first show release nation wide, avoid piracyDistributor: No logistic expenses or delaysExhibitor: No investment for Digital Prints and DCS equipment (less Capex), No hassles such as bad quality prints, delivery dates, etc

DCS at the Multiplex

UFO working model:

192 bit encrypted digital movie

Central server at UFO office

192 bit encrypted digital movie

By using the licensekey provided, the theatre owner can decrypt the movie

UFO security solutions (Watermarking): UFO follows the concept of Invisible Watermarking. Using this technology security feature, it is possible to trace, from a pirated CD or DVD, the name and location of the theatre where the film was illegally copied, along with other co-ordinates like time, date, etc., thus helping to crack down on Piracy.

UFO Ticketing platform:UFO launched a settlement platform called ‘IMPACT’ to bring transparency,

efficiency and accountability in this process. IMPACT exchange operates in real time and is connected to the back-end via satellite. IMPACT exchange mediates the transaction between the exhibition centers on one hand, and the government and the distributors on the other hand.

Revenue Flow Model:

While profits for distributors-exhibitors are boosted by this revenue model, box-office collections improve due to date-and-day release of a film in maximum number of centers.

Distributor UFO Exhibitor

Rs.100 to 150 per movie & advertisement rights

Rs.360 per show in 1st week, 200 in 2nd week and no fee after that

MEDIA AND TELECOMWith better technology and increasing internet speed, the demand for media content on the go is increasing day by day.Hence need of the hour for the telecom operators is to collaborate with the media companies in order to access their content seamlessly.

Collaboration can lead to business models of three types:1. Partnership or Tie up2. Buy Out3. Stand Alone

CASE 1: TIE UPRIL AND TV 18 DEAL

Under the deal, Reliance has put up the money (Rs 4000cr) to allow the controlling shareholders of the TV18 group to subscribe to rights issues in the two firms, Network18 Media and Investments and TV18 Broadcast Ltd. Result of the Deal•Reliance will get preferential access to content from TV18, which runs television channels and websites including CNN-IBN, CNBC-TV18 and Colors•Reliance have a major stake in a cross-media enterprise, spanning digital divides to encompass print publications, news and entertainment broadcasting, consumer Internet, film production and e-commerce.•The combination of India's leading TV content provider, with 25 channels, bringing a high quality ‘live TV' experience to broadband customers

CASE 2: BUY OUTTELECOM ITALIA ACQUIRES TI MEDIATelecom Italia - Acquired Telecom Italia Media (or TI Media)

to move into context space                       - It fouces on television production and broadcasting, Advertizing and other multimedia activities

CASE 3: STAND ALONE 3 ITALIA

3 Italia - Launched first fill fledged mobile television channel LA3 devoted to broadcast live sports, news and entertainment

            - In just over two years from launch , over 10% of 3 Italia's subscriber base signed up for service and part of success can be attributed

Content Owner

• Paramount Pictures

• MGM• Lions Gate

Entertainment• Time Warner• Universal Pictures• Sony Pictures• 20th Century Fox,

Disney and other distributors.

Content Aggregator

• Netflix

Distribution Systems

• DirecTV• Comcast• Time Warner Cable Inc.• Dish Network Corp.

Consumer Devices

• Video game consoles• Set-top boxes• Blu-ray Disc players• Televisions• Handheld devices

NETFLIX VALUE CHAIN

NETFLIX CANVAS BUSINESS MODEL

YOUTUBE IN BROADCASTING A new flavour of YouTube itself--an initiative that search giant has put in place to try to

capture their share of the television ad market, estimated to be $50 billion a year for broadcast, and $25 billion in cable in the U.S. alone.

Broadcast of IPL on a dedicated YouTube Channel in tie up with Times Internet Broadcast of video-highlight clips of major sports events of ESPN in tie up with Walt

Disney Tie up with movie production houses for the official release of the movie trailer YouTube has opened discussions with the National Football League to buy the rights to

the "Sunday Ticket" subscription TV service