satellite television
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CABLE & SATELLITE
TELEVISION
Source : KPMG FICCI Frames Report
2014
Year Size (INR)
2006 183 billion
2008 241 billion
2014 479 billion
2018(P) 885 billion
CAGR : 16 % apprx
Advertising v/s subscription revenue(INR Billion)
2014(E) 2018(P)
Advertising &
Sponsorships
152 (32 %) 253 (28%)
Subscription 327 (68%) 632 (72 %)
Total 479 (100%) 885 (100%)
Value Chain
Content Producers
Broadcasting Channels
Distributors (Multi Service Operators & Local Cable
Operators)
Subscribers
Genres of channels
GEC
News
Sports
Music
Movies
Lifestyle
Cooking
Shopping
Kids
Others
No. of Channels
1991 – 05
1993 – 13
1996 – 66
2000 – 130
2004 - 200
2007- 363
2011 - 623
Facts
2013
161 million TV households in India – 60% penetration
139 million C&S households – 87% penetration
2018 (P)
191 million TV households – 78 % penetration
181 million C&S households – 95 % penetration
Source : KPMG FICCI Frames Report 2014
TV penetration in various
countries
India- 60%
Indonesia-78%
China-98%
Brazil- 90%
Germany- 97%
ARPUs per month (Average Revenue
Per User)
2012 2013 2014 2015 2016 2017
Cable 166 174 194 227 260 289
DTH 170 180 209 236 266 293
Monthly ARPUs in developed markets are 5-6 times that of a single multiplex
movie ticket, while in India the ratio is close to 1
No. of C&S subscribers (Million Households)
2011 2017 (P)
Analog 73 0
Digital 5 81
DTH 33 90
IPTV 8 3
Total 119 174
By 31 Dec 2014 all homes to be digitised as per Govt. mandate
Phases of digitisation (CAS)
TRAI Guidelines Industry
Estimates
Delhi,Mum,Kolkata,Chennai - 31 Oct 2012 March
2013
Cities > 10 lacs population - 31 Mar 2013 March
2014
All Urban municipal areas - 30 Sep 2014 Dec-
2015
Rest of India - 31 Dec 2014 Dec-
2016
DTH players have a huge opportunity to increase subscriber base
due to digitisation
Advantages of digitisation
Access to higher no. of TV channels
Customised Tariffs
Other value added services (E-learning,
games & movies on demand)
Enhanced User experience
Better customer service
Carriage fee to rationalise, but placement fee
may continue
MSO v/s LCO in post digitisation Era
Entire billing will be done by MSO through
Subscriber Management System
Power Equation will shift to MSOs &
broadcasters
LCO’s role will become largely of a collection
agent
MSOs will own the entire infrastructure and fund
the STBs (Set Top Boxes)
Stake Holder Revenue
Stake Holder Revenue 2011 2016(P)
Consumer ARPU 100 % 100%
LCOs 65-70% 35-50%
MSOs 15-20% 25-30%
Broadcaster 10-15% 30-35%
Note:
1) As per broadcasters LCOs currently declare only 10-15% of actual
subscriber base thus leading to low subscription revenues
2) TRAI has recommended a revenue share of 55:45 (MSO:LCO) for the
basic free to air tier channels and 65:35 (MSO:LCO) for a combination of
free to air and pay channels
TV viewing time (minutes p/day)
India- 154
US- 317
UK- 240
Indonesia-174
Vietnam – 142
China- 146
Revenue Streams
1. Subscription charges
2. Selling airtime (advertisements)
3. Sponsorships
4. SMS revenue sharing
5. Mobile Streaming
6. Merchandise Sales: KBC quiz book, Channel [V] T-shirts, etc
7. Home video and music : CNBC lessons of excellence DVDs, National Geographic DVDs, Indian Idol winner’s album, etc
8. Product placements
9. Home shopping revenues
Types of advt. revenue
Spot rates
Sponsors
Embedded advt
Screen space exploitation
Product Placement
Spot Rates
Prime Time Rates
ROS rates
Program specific rates
Bouquet Rates
Rates range from Rs 1000/- per 10 secs to Rs 18
Lakhs per 10 secs depending upon viewership
and target audience
Note: There is a CAP of 12 minutes advertising time per hour
Top 10 sectors advertising on TV
Sector % share of advt. volume
Food and Beverages 14
Personal care & hygiene 12
Services 7
Personal Accessories 5
Hair Care 5
Auto 4
Personal Health Care 4
Household Products 3
Building, Industrial & Land
Materials
3
Telecom /ISPs 3
Total 60
Source:-
KPMG FICCI
2013 report
Top advertisers on TV (2011) - %
Share
Hindustan Unilever Ltd 8%
Reckitt Benckiser (I) Ltd 2%
ITC Ltd 2%
Cadbury India Ltd 2%
Coca-Cola 1%
Colgate Palmolive(I) Ltd 1%
Procter & Gamble 2%
Ponds India 1%
Samsung India Electronics 1%
Marico Ltd 1%
Total : 22 % Source: KPMG-FICCI report
2013
Major Expense heads
1. Production expenses
2. Copyrights for serials
3. Copyrights for movies
4. Licensee fees for international reality show formats
5. Fees to judges/celebrities
6. News coverage expenses
7. Events/Award shows
8. Advertising and promotions
Terms used commonly
Viewership
How many people actually watch (even once)
TRP
How much is being watched by an individual
GRP
How much of the entire channel is being watched
as compared to other channels.
People - o - meters
Data capturing devices installed by INTAM in 15K
homes and by aMAP in 10K homes
TRP- Basic understanding
Person 1 Person 2 Person 3 Person 4 Person 5
Total time
avlb
30 30 30 30 30
Viewershi
p status
Does not
watch
Watches Watches Watches Watches
Time
watched
(mins)
0 2 5 10 13
Viewership details for an episode of 30 mins of program ‘XYZ’
1) Viewership is 4 / 5 * 100 = 80%
2) TRP is (0+2+5+10+13) / 150 = 30 /150 *100
TRP = 20
Viewership share of genres (%)
Source: TAM Media Research
Contribution of sales revenue - Language
wise
Hindi, 50%
English, 10%
Others , 7%
Kannada , 4%
Malayalam, 2%
Marathi, 5%
Tamil, 10%
Telugu, 8%Bengali, 4%
Sales Revenue
Channel Rankings- GECs
1.Star Plus
2. SET (Sony)
3. Colors
4. Zee TV
Programming content break-up for
GECs
Soaps, 65Reality/Talent/
Game shows, 14
Comedy, 8
Lifestyle, 6
Thrillers, 5 Others, 2
% Break-up
Top 10 Fiction programs in 2012
Bade Achhe Lagte Hai Sony
Balika Vadhu Colors
Tarak Mehta Ka Ulta Chashma SAB TV
Diya Aur Bati Star Plus
Saath Nibhana Saathiya Star Plus
Is Pyar ko Kya Naam Doon Star Plus
Yeh Rishta Kya Kehlata Hai Star Plus
Pavitra Rishta Zee TV
Pratigya Star Plus
CID Sony
Top 10 non-fiction shows in 2012
KBC Sony
Big Boss-6 Colors
MTV Roadies MTV
Dance India Dance Zee TV
Satyamev Jayate Star Plus
Jhalak Dikhla Ja Colors
Comedy Circus Sony
Indian Idol 6 Colors
India’s Got Talent 4 Colors
Sa Re Ga Ma Pa 2012 Zee TV
Most watched shows
India- Sri WC 2011 Finals (TRP 20.00)
KBC – 1st season (TRP 10.00)
IPL matches (avg TRP 5.00)
Note: TRP figs given above are apprx.
Indian reality shows based on global
formats
Show Channel Global Format Country of origin
Kaun Banega
Crorepati
Sony Who wants to be
a millionaire
U.S
Indian Idol Sony American Idol U. S
Kya Aap
Paanchvi …..Hai
Star Plus Are you smarter
than the 5th
grader
U.S
Dus Ka Dum SET The Power of 10 U.S
Big Boss Colors Big Brother Netherlands
Khatron Ke
Khiladi
Colors Fear Factor Netherlands
Movie Acquisition Costs ( Rs
Crs) 2009
Ghajini – 20-25
Singh Is King – 15-20
Welcome 10-15
2010
3 Idiots – 30-35
Housefull - 15-20
Dabangg – 10-15
2011
Ra One - 35-40
Bodyguard – 25-30
Rajneeti- 20-25
2012
Don 2 – 35-40
Agneepath - 30-45
Dabangg 2 – 50+ crs
Talaash – 65 crs
Yet to Release
Krishh 3 – 35-40 crs
-Movie broadcast rights have largely moved away from
syndicated back to exclusive deals
-Movie bidding for broadcast rights has become extremely
competitive.
-New movie rights are bought 3-6 months in advance of film’s
release
-Catalogue rights are sold 1-3 yrs in advance of contract
expiry dates.
- To recover the cost of movie acquisition costs channels
have to price their spots at Rs 3-5 lacs per 10 sec spot
- Movie rights form a substantial part of cost structure for
GECs
TRPs of film premiers
3 idiots -10.9
Bodyguard – 10.0
Dabang – 9.2
Singham - 8.8
Ra One -6.7
Rowdy Rathore -6.0
Cocktail -5.3
Bol Bacchan- 4.8
Agneepath -4.7
Zindagi Na Milegi Dobaara – 4.1
OMG- 3.5
Ek ThaTiger – 3.3
Source :www.indicine.com
Regionalization in Satellite TV
industry
No. of channels : 200 apprx
Key players: Sun TV, Star Vijay,StarAnanda,Gemini,Asianet, Zee’s & ETV’s regional channels.
Increasing C&S penetration in Tier III and IV towns
Need for localised content in regional language
South India has been traditionally language driven market
Penetration of other mediums is low as compared to C&S
Diverse set of viewers which fall in different socio-economic classes and need content in language and format they are comfortable with
Advertisers also need to communicate in local
Regionalisation (contd…)
Regional language channels account for 35 of the top 100 shows
Acco. To TAM Adex regional channels garnered 42% of total
advertising volumes and national channels had 58% share
Regional channels strengthening their portfolio by launching
niche channels for music,news,etc
Demand for regional content and talent is increasing
Regional channels command 27.2 % share of the advertising
market
Star & Zee networks get 30% of their revenues from regional
channels
Multi Screen Media (Sony) has entered Telugu market with
acquisition of Maa TV
Network 18 has acquired EanaduTV which has presence in 6
regional markets
Regionalisation (contd….)
Zee and Star have launched Bangla Movie channels viz: Zee
Cinema Bangla and Jalsa Movies
Star owned Asianet has launched Asianet Movies, the first
movie channel in Malyalam
Guajarati dailies Sandesh and Gujarat Samachar have their
news channels GSTV and Sandesh TV respectively.
A new bhojpuri entertainment channel Anjan TV was
launched by AAP media
9X Media has launched 9X Tashan in Punjabi and 9X
Jhakaas in Marathi
CNEB launched a new Bhojpuri music Channel called
Humara M
Viewership of Regional
Channels
Advertising market size for regional channels
Language Households
(millions)
TV Households
(millions / % of
total
households)
C&S Households
(millions/ % of
total TV
households)
Advertising
Market Size
(Rs Crs)
Tamil 17.7 16.4 (93%) 15.9 (97%) 1350
Telugu 20.9 15.1 (72%) 14.8 (98%) 900
Bangla 20.3 9.5 (47%) 8.6 (90%) 700
Kannada 13.5 10 (75%) 9.9 (98%) 620
Malyala
m
8.1 7.6 (93%) 7.1 (94%) 660
Marathi 24.9 16.8 (67%) 14.9 (89%) 410
Oriya 10.0 4.2 (42%) 3.5 (84%) 80
Gujarati 12.7 4.8 (87%) 7.0 (87%) 45
Punjabi 5.5 4.8 (87%) 4.3 (91%) 150
Bhojpuri* 56.4 16.6 (29%) 11.3 (68%) 100* Bhojpuri consists of Eastern UP,Jharkhand and Bihar
Evaluation of regional market
opportunities
Parameter Gujarati Marathi Kanada Tamil Telugu Malayalam Punjabi Bengali Bhojpuri
Size of
Population
Big Huge Big Huge Huge Small Big Huge Big
Purchasing
power of TG
High Moderate High High High Moderate High Low V.Low
Advt. revenue
potential
Moderate Moderate Moderate High High High Moderate Low Low
Competition Moderate Moderate Moderate
to High
Very
High
Very
High
High Moderate High Low
Apprx no. of
channels
present
10 11 20 50 40 21 15 25 5
Key inferences & observations for
satellite television space
The Satellite TV space is increasingly
becoming hugely competitive and fragmented
Its advantageous to have a GEC umbrella
brand around which niche channels can be
developed
Increased average viewing time due to
availability of better content and more
channels
Monetisation of content library on Mobile TV
will lead to increased revenues
Challenges for Satellite TV
industry
Need to develop original formats for reality
shows
Fiction programming not able to create sticky
eye-balls
Sustaining TRPs is a tough task
Increasing ARPU from DTH platform in the
medium to long term
Lack of innovative and strong programming
content
Key Facts
GEC Channels likeZEE TV,SET, Star Plus and Colors are available in
approximately 169,77,70 and 50 countries respectively.
US,UK and Canada markets are close to saturation in terms of
penetration, the Middle East and Africa continue to offer significant
growth opportunities
The content is also offered in dubbed or sub-titled versions to the local
population in these countries
Zee has been syndicating Indian soap dramas dubbed in Mandarin to
Chinese television channels since 2006.
Star TV has reportedly invested apprx. Rs 300 crores on movie
acquisitions
Zee has invested Rs 200 crores to acquire 10 movies during the year
Kid’s channels is the largest genre after Hindi and Regional channels
but command only 1 % advertising revenue share and hence is
undervalued by advertisers
Kids genre will see increased localization of content
Key Facts
Compared to its viewership share of apprx.1% English
Entertainment channels command a higher advertisement
share of 5%
Channel V has exited the music genre and is now positioned
as a Youth GEC.
News channels have negative subscription revenues
due to high carriage fees
Niche sporting channels like Ten Golf can command
customer subscription revenues of Rs 200/- per month
Sports channels are trying to focus on cricket beyond
international cricket i.e Club & University cricket as well
as non- cricket sports.
Key Facts
HD subscribers account for 3.5 – 4 % of existing DTH
subscribers
Growing HD adoption will boost DTH ARPUs
36 channels are currently available on HD format and will
increase to 50 channels by 2014.
BARC
Broadcaster Audience Research Council (BARC) was
launched in March 2012
It is a joint body of advertisers and broadcasters with three
shareholder i.e Indian Broadcasting Foundation (IBF),
Advertising Agencies Association of India (AAAI) and Indian
Society of Advertisers(ISA).
It has been formed on the lines of BARB that compiles
audience measurement in UK
BARC has been founded to cater to the need of more
competition in television ratings space which has been
dominated by TAM Media
BARC will segregate data collection, analysis and reporting
between 3 independent agencies to maintain transperency
BARC will have a sample size of 30,000 households
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