zinnov media and entertainment gspr 2015

This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside

the client organization without prior written approval from Zinnov.

This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside

the client organization without prior written approval from Zinnov.

Media Report - February, 2016

Media & Entertainment

Global Service Providers Rating - 2015

Global M&E Landscape 01

Service Provider Landscape 02

USD 1.4 Trillion Overall Media & Entertainment

(M&E) Vertical Market Size

(2015)

― Media and Entertainment Industry Landscape

― Market Numbers and Segment Wise Growth

― Total PES and IT Addressable Market

― Addressed PES and IT Services Market

03 M&E GSPR 2015 Ratings

Media and Entertainment vertical consists of 8 major segments, each comprising of multiple customer groups

New Media

Online – Audio, Video, Editorial

Social Platforms

Information Services

Directories

Financial Information Providers

Market Research Providers

Publishing

Book Publishers

Magazine Publishers

Newspaper Publishers

Gaming

Console Gaming

Casinos/Slot Machines

Online Gaming – Betting & Social

Broadcasting

Broadcasting – Over The Air

Cable & Satellite

OTT

Marketing & Advertising

Marketing Agencies

Ad-Tech Players

Entertainment

Studios

Music

Theme Parks

Original Content Creators

Education

Online Education

Education Publishers

Education Tech Players

Source: Zinnov Research & Analysis 3

260 275

110 130

320 400

110

140 220

295 150

220

60

100

150

300

2015 2020e

The M&E market currently is 1.4 Trillion USD, expected to reach 1.9 Trillion USD by 2020

Revenues in USD Bn

4 Source: Zinnov Research & Analysis

New Media

Education

Entertainment

Gaming

Marketing &

Advertising

Broadcasting

Information

Services

Publishing

15.0%

10.5%

8.0%

5.9%

5.0%

4.5%

3.5%

1.0%

Overall 6.1%

CAGR 2015-2020

Key Players

Facebook, Yahoo, Twitter, Google, LinkedIn, Baidu,

Huffington Post, etc.

Pearson, Apollo Group, Blackboard, K12, Laureate,

Kaplan, Udemy, Udacity, etc.

Warner Bros, Sony Pictures, 21st Century Fox, Disney,

Universal Pictures etc.

Gtech, Zynga, King, Las Vegas Sands, SJM Holdings,

EA, Scientific Games, Activision Blizzard, etc.

Publicis ,Omnicom, WPP, IPG, Dentsu, Havas,

AppNexus, etc.

Comcast, DirecTV, Disney Networks, Turner, BBC,

Sky, Fox Networks etc.

Nielsen, Kantar Media, Ipsos, McGraw Hill Financial,

IMS Health, Harris Interactive, GfK etc.

Pearson, News Corp, Hachette, Gannett, Time Inc,

Condé Nast, Tribune, etc.

TOTAL

North America and Europe based companies contribute more than 75% of the overall revenues for this space

Publishing

Information

Services

Broadcasting

Marketing &

Advertising

Gaming

Entertainment

Education

New Media

Americas Europe APAC

5

25%

15%

20%

35%

15%

15%

10%

20%

150 Bn

60 Bn

150 Bn

220 Bn

110 Bn

320 Bn

110 Bn

260 Bn

20%

20%

20%

15%

55%

25%

30%

40%

55%

65%

60%

50%

30%

60%

60%

40%

~52% ~27% ~21% ~1400 Bn

0% 100%

Revenue Share

50% 0% 100%

Revenue Share

50% 0% 100%

Revenue Share

50%

Source: Zinnov Research & Analysis

Overall, the Media and Entertainment industry is fragmented with a long tail of companies. Top 50 companies contribute 40% of overall revenues

40%

60%

M&E Industry Revenues USD ~1.4 Trillion

50 500+

Long List of 500+ companies


However, a detailed analysis reveals a split of consolidated and fragmented segments within the M&E Industry

59%

20%

57%

34%

60%

18%

54%

Consolidated Segments – Top 10 Players Contribution

Fragmented Segments – Top 10 Players Contribution

7

Broadcasting Information Services

Gaming

Entertainment Marketing &

Advertising

Education

New Media

Publishing

58%


M&E GSPR 2015 Ratings


Service Provider Landscape

03

02

USD 60 Billion Total Addressable Market

(2015)





Technology disruption is driving robust spend on PES and IT in the Media and Entertainment space


USD 114 Billion

Total PES and IT Spend ( 2015)

9

New Media

USD 29 BN

Entertainment

USD 11 BN

Marketing &

Advertising

USD 6 BN

Information

Services

USD 10 BN

Education

USD 5 BN

Gaming

USD 21 BN

Broadcasting

USD 22 BN

Publishing

USD 10 BN

Current Addressable PES Spend Current Addressable IT Spend

*Opportunity Includes market for Product Engineering and IT Services

USD

60 Billion

Addressable Market (2015)

Total Addressable

Opportunity*

USD

92 Billion

USD

22 Billion

USD

38 Billion

The addressable PES and IT globalization and services opportunity stands at USD 60 billion and will reach USD 92 billion by 2020

Addressable Market (2020)

Total Addressable

Opportunity*

Addressable PES Spend (2020) Addressable IT Spend (2020)

USD

37 Billion

USD

55 Billion


14.3

3.1

5.8

8.8

3.4

13.0

5.5

6.7

28.0

4.8

8.6

12.9

4.4

18.5

6.9 7.6

New Media Education Entertainment Gaming Marketing &

Advertising

Broadcasting Information Services Publishing

Total Addressable Market Segment Wise (in USD Billion)

2015 2020e

USD

60 Billion

FY 2015

USD

92 Billion

FY 2020(E)

~8.7%

The addressable market is expected to grow at a CAGR of ~8.7% till 2020


10-15% 20-25% 60-65%

Outsourcing Hotspots Outsourced

PES and IT Services

12

Current addressed PES and IT service market is USD 6.5 billion, around 60% of the outsourcing market is driven by North America based companies

Americas Europe APAC

USD

6.5 Billion

Addressed PES and IT services through

outsourcing partners


Three Key trends in

Media and

Entertainment

outsourcing

landscape

Key forces changing the outsourcing landscape

1

2

3 Service Providers are building end to end capabilities across the media value chain by

acquiring niche digital companies or partnering with start-ups

Global media companies are looking at APAC and emerging markets for driving future growth

and working with service providers to achieve faster time to market for their products

Ability to reach end consumers directly, providing customized experiences are becoming key

investment areas for companies in the media and entertainment space


M&E GSPR 2015 Ratings


Service Provider Landscape

03

02

Service Providers players are moving towards

delivering more niche and

digital services





ZINNOV ZONES EXPLAINED

Nurture

Zone

Breakout Zone

Execution Zone

Leader

Zone

Att

ribute

s C

hal

lenge

s R

eco

mm

ended

Initia

tive

s

• Acquiring new customers, diversifying revenue

• Building product engineering competencies across various media customers/segments

• Developing Engineering services / platform/product specific Sales organization

• Understanding the differences between PES/ IT Service business Software Engineering Services

• Focus on targeted customer sections

• Build technology competency in niche focus areas/ technologies

• Focus on building credibility by delivering on initial project scope

• New entrants, providing skill sets to supplement Product development and R&D growth

• Presence in only a few customer segments: Focused growth

• Innovation, if at all, in process optimization

• Limited number of clients • Typically work in T&M model

• Acquiring large customers • Growing existing accounts and

repeat business Software Engineering Services

• Developing across the PDLC, solution development competencies

• Building domain, product/ platform engineering capabilities

• Focus on Skill Development • Focus on augmenting domain

skills ( aligned to the concerned media segment)

• Work on building trust with existing customers

• On the way into big league, delivering R&D services effectively

• Presence in two or more customer sections

• Innovation frameworks resulting in tangible benefit to customers

• Typically work in T&M and Fixed Price model

• Growing small accounts into deep relationships

• Building Concept to Market Capabilities with deep domain expertise, relevant IP’s

• Executing on new & innovative business Software Engineering Services models

• Limited self owned R&D/ product development infrastructure

• Focus on IP creation; create segment agnostic IP’s for media vertical

• Focus on Account Mining and execution on new business Software Engineering Services models

• Focus on internal and external innovation capability /skill incubation efforts

• Capable of delivering complete product/platform development as a true engineering partner

• Presence in almost all customer sections for that segment

• Reusable IP’s built, and benefits quantified

• Capable of executing engagements across all business Software Engineering Services models

• Succeeding as go to market partner in emerging markets

• Building end to end product of their own

• Building product management capabilities

• Scaling new segment practices in R&D services to drive continued growth

• Focus on end customer of customers

• Drive customer led innovation • Build strong Go-To-Market

capability to become viable channel partner for customers

• Capable of performing concept to Go-To-Market for the product/platform

• Presence in almost all customer sections for that segment

• Formal innovation culture, resulting in IP’s and numerous tactical innovations

• Capable of working in all models, including Risk Reward and Revenue Share


NEW MEDIA – 2015

Nurture Zone Breakout Zone Execution Zone Leadership Zone

IGATE

Happiest Minds

HARMAN

Connected Services

GlobalLogic

Cybage

Mindtree

Low

High

Scalability

Domain Practice

Maturity

Zinnov Zones – Leading Service Providers

Depth of Services

Innovation

Eco-system

Connect

EPAM

Aricent

TCS

HCL

Wipro

L&T

Infotech

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale

Ness

Software

Engineering

Services

Tech Mahindra

• Product development and R&D is a focus area

across this segment

• Niche capability in one type across the three

major areas (multi-channel distribution,

analytics media planning)


• Generic - MOUs with partners and alliances

• On the way into big league, delivering domain

services effectively, tear down , purpose fit labs

• Generic Capability across the segment and niche

capability in one area

• Innovation frameworks resulting in tangible

benefit to customers

• Specific industry alliances, partnerships and

membership in Global forums

• Capable of delivering complete end to end

engagements, strong product development

capabilities

• Niche capability spans across two areas and at

least generic capability level in one service type


• Alliances with Customers who are Industry

Leaders and strong ecosystem linkages

• Capable of performing concept to Go-To-Market

for the segment –Significant investment in Lab

infrastructure

• Strong capability in multi-channel distribution,

analytics media planning solutions

• Formal innovation culture, resulting in IP’s and

strategic innovations

• Leadership role in alliances, leverage startups,

Specific academic research, and co-creation with

customers


EDUCATION - 2015


Happiest Minds

HARMAN

Connected Services Ness Software

Engineering

Services

Cybage

Mindtree

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Eco-system

Connect

EPAM

TCS HCL

Wipro

L&T

Infotech

Tech Mahindra

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (content management services,

mobility, analytics, LMS)













capabilities








infrastructure

• Strong capability in content management services,

mobility, analytics, LMS solutions





customers


ENTERTAINMENT ( FILMS, STUDIOS, MUSIC, THEME PARKS) - 2015


IGATE

Happiest

Minds

L&T Infotech

Ness Software

Engineering Services

EPAM

Scalability


Aricent

Tech

Mahindra

HCL

Wipro

Cybage

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (content supply chain, mobility,

analytics)













capabilities








infrastructure

• Strong capability in content supply chain, mobility

solutions, analytics platforms





customers

Domain Practice

Maturity

Depth of Services

Innovation

Eco-system

Connect

Low

High

TCS


GAMING - 2015


Happiest

Minds

HARMAN

Connected Services

Ness Software

Engineering Services Cybage

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Eco-system

Connect

EPAM Aricent

TCS

HCL

Wipro

Tech Mahindra

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (UI/UX, mobility, analytics, CRM )













capabilities








infrastructure

• Strong capability in UI/UX, mobility, analytics,

CRM solutions





customers


MARKETING AND ADVERTISING - 2015


Ness Software

Engineering

Services

Cybage

Mindtree

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Eco-system

Connect

EPAM

TCS

HCL

Wipro

L&T Infotech

Tech

Mahindra

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (ad Tech Engineering, ROI

measurement, marketing tools)













capabilities








infrastructure

• Strong capability in ad Tech Engineering, ROI

measurement, marketing tools solutions





customers


BROADCASTING - 2015


IGATE

Happiest

Minds

HARMAN

Connected Services

Ness

Software

Engineering

Services


across this segment

GlobalLogic

Cybage

Mindtree

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale

EPAM

Aricent

TCS

HCL

Wipro

L&T Infotech

Tech Mahindra


major areas (content supply chain, mobility,

analytics)













capabilities








infrastructure

• Strong capability in content supply chain, mobility

solutions, analytics platforms





customers

21

Eco-system

Connect


INFORMATION SERVICES - 2015


Happiest

Minds

HARMAN Connected Services

Ness Software

Engineering Services

Cybage

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Eco-system

Connect

EPAM

TCS

HCL

Wipro

L&T

Infotech

Tech

Mahindra

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (workflow management, editorial,

digitization and analytics)













capabilities








infrastructure

• Strong capability in workflow management,

editorial, digitization and analytics solutions





customers


PUBLISHING - 2015


Happiest Minds Ness

Software

Engineering

Services

L&T Infotech Cybage

Mindtree

Scalability


EPAM

Wipro

TCS

Tech Mahindra

HCL

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (content supply chain, content

ecosystem, digital distribution and analytics)













capabilities








infrastructure

• Strong capability in content supply chain, content

ecosystem, digital distribution and analytics

solutions





customers

Domain Practice

Maturity

Depth of Services

Innovation

Eco-system

Connect

Low

High


Bangalore

69 "Prathiba Complex",

4th 'A' Cross,

Koramangala 5th Block,

Bangalore-560 095.

Phone: +91-80-41127925/6

Singapore

Level 42, Suntec Tower Three

8 Temasek Boulevard

Singapore 038988

Phone:+65 6829 2123

Texas

21, Waterway Ave

Suite 300

The Woodlands

TX-77380 USA

Phone:+1-281-362-2773

Beijing

Meilifang Tower 4, Entrance 4,

10/F #1003,

11 Beiyuan Shuangying Road,

Chaoyang District, Beijing

China 100012

Thank You

Gurgaon Office:

First Floor,

Plot no. 131, Sector 44,

Gurgaon-122002,

Phone: +91 124 4420100

California Office

3080 Olcott Street

Suite A125,

Santa Clara, CA 95054

Phone: +408-716-8432

zinnov media and entertainment gspr 2015

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