5. Key Drivers of the Indian M&E Industry Key Drivers Consumerism Advertising spend Pricing Content Technology Regulation
6. Source: IMaCS Analysis (b) up to 26% in publishing News Papers and Periodicals dealing in News and Current Affairs subject to a few conditions (a) up to 100% in publishing/printing scientific & technical magazines, periodicals & journals 3. Print Media for the full value chain like film financing, production, distribution, exhibition and marketing upto 100% 2. Films upto 100% through the automatic route 1 . Advertising Guidelines for Foreign Direct Investment in the Indian M&E Industry
7. FDI Regulations for Indian M&E Industry…2 a)TV Software Production 100% foreign investment allowed subject to a few conditions b) Setting up hardware facilities, such as uplinking, HUB, etc. upto 49% paid up share capital c) Cable Network upto 49% of paid up share capital. d) Direct-to-Home Maximum foreign investment of 49% paid up share capital include e) Terrestrial Broadcasting FM to the extent of 20% of the paid up share capital of the company. The licensee should be a company registered in India under the Companies Act. f) Establishment and Operation of Satellite FDI up to 74% is permitted with prior Government approval 4. Broadcasting Guidelines for Foreign Direct Investment in the Indian M&E Industry Source: IMaCS Analysis
14. Source: TAM Media Research Genrewise Television Viewership Share in India 39% 38% 5% 8% 2% 4% 3% 1% News Channels Sports Channels Mass Entertainment Hindi Film Channels Kids Channels Regional Channels English Entertainment Music Channels
15. Largest TV network with 19 channels reaching 90% of the population Entered in 1991 and offers more than 10 channels in mass entertainment, sports, news,, music, movies etc. Pioneers of the Indian Television industry with 22 channels. It is present in broadcasting, cable distribution, production and distribution of films, creation of animation software Present with 3 channels focusing on Hindi entertainment and sports Based in South India with 14 channels in four languages and offers news, movies, music, kids shows. Present in India through two kids channels and has recently bought one more kids channel
28. Breakup of Indian films market Source: IMaCS Analysis, Industry estimates 5 4 % 2 % 2 % 1 0 % 1 7 % 1 5 % 1 % 8 % H i n d i C r o s s o v e r H i n d i T a m i l T e l u g u F o r e i g n M a l a y a l a m B e n g a l I O t h e r s
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41. Top key players News paper players Founded Avg. Daily Circulation (2008) IRS (2008) Times of India 1838 3.14 million 13.3 million The Hindu 1875 1.45 million 5.2 million Hindustan Times 1924 1.14 million 4.8 million
53. Event Manager: To coordinate activities of staff and convention personnel to make arrangements for group meetings and conventions
54. Marketing Manager, Media : To determine the demand for products and services offered and identify potential customers
55. Channel Sales Manager : Ensure execution of the developed sales strategies, plans and advertising or promotional programs
56. Business Development Manager : To Plan, direct, or coordinate the operations & develop strategic alliances and partnerships for Media And Entertainment companies
57. Journalist : Collect and analyze facts by interview, investigation, or observation. Report and write stories for newspaper, news magazine, radio or television
58. Brand Manager : To maintain and promote brand names through various methods
59. Production Management- To help in the production of films, serials, news and entertainment channels
FDI Policies for Broadcasting TV Software Production - 100% foreign investment allowed subject to: (i) All future laws on broadcasting and no claim of any privilege or protection by virtue of approval accorded, and (ii) Not undertaking any broadcasting from Indian soil without Government approval Setting up hardware facilities, such as uplinking, HUB, etc. - Private companies incorporated in India with permissible FII/NRI (Non Resident Indian)/PIO (Persons of Indian Orgin) equity upto 49% of paid up share capital (inclusive of both FDI and portfolio investment) to set up uplinking hub (teleports) for leasing or hiring out their facilities to broadcasters Note: As regards satellite broadcasting, all TV channels irrespective of management control to uplink from India provided they undertake to comply with the broadcast (programme & advertising) code Cable Network - Foreign investment allowed up to 49% (inclusive of both FDI and portfolio investment) of paid up share capital. Companies with minimum 51% of paid up share capital held by Indian citizens are eligible under the Cable Television Network Rules (1994) to provide cable TV services Direct-to-Home - Maximum foreign investment of 49% equity including FDI/NRI/FII allowed. Within the foreign equity, the FDI component should not exceed 20%
FDI Policies for Broadcasting Terrestrial Broadcasting FM - The licensee should be a company registered in India under the Companies Act. All shareholding should be held by Indians except for the limited portfolio investment by FII/NRI/PIO/OCB subject to such ceiling as may be decided from time to time. Company should not have any direct investment by foreign entities, NRIs and OCBs. As of now, the foreign investment is permissible to the extent of 20% portfolio investment Terrestrial TV - No private operator is allowed in terrestrial TV transmission Establishment and Operation of Satellite - FDI up to 74% is permitted with prior Government approval FDI Policies for Print Media FDI up to 100% is permitted in publishing/printing scientific & technical magazines, periodicals & journals FDI up to 26% is permitted in publishing News Papers and Periodicals dealing in News and Current Affairs subject to verification of antecedents of foreign investor, keeping editorial and management control in the hands of resident Indians and ensuring against dispersal of Indian equity. The largest shareholder must hold minimum of 51% equity and three/fourth of all the directors and executive and editorial staff should be resident Indians
Mass Entertainment channels focus mainly on family soaps, sitcoms, reality shows and movies Sony Entertainment Network, Star Plus (Newscorp), Zee TV, Sun TV and Vijay TV are some of the mass entertainment channels ESPN-Star Sports and Ten Sports are the two leading sports channels while CNN-IBN and NDTV are the two leading business channels in India
Other leading players in the Indian Television & Radio Industry Turner International TEN Sports MTV India TV18 Times Now BBC NDTV India Nimbus Communications Ltd. UTV Software Communications Ltd. Balaji Telefilms Hathway Datacom Pvt. Ltd. Incable Network Radio Mirchi
Many Hollywood films like Titanic, Spiderman, Jurassic Park, Anaconda, Harry Potter have done very well in India with collection running into millions of US dollars. Most of the Hollywood films are being launched in India in English as well as dubbed in Hindi and many regional languages to tap into the maximum potential market Digitisation of movie theatres is adding to the pleasure of watching movies, while making a lot of commercial sense for film producers and theatre owners who are enjoying higher occupancy rates
Other leading players in the Indian Print Media Dainik Bhaskar Dainik Jagran Hindustan The Deccan Chronicle Amar Ujala The Telegraph India Today Outlook Grihshobha
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