Indian Media Scenario

March’2011
 Structure

 India - Its Happening Now

 India at a glance
 Diversity
 Basic Parameters
 Economic Construct
 Population Break Up
 SEC Clasification
 Indian Media
 Media reach
 Television
 Print
 Radio
 Internet
 Media performance on Key Metrics
 Content

 Indian Advertising Industry revenues

 Mediumwise break up
 Trends over last 5 years
 A closer look at Television Media
 Split between – Analog, Digital & Non C& S
 Growth over last year
 Urban V.s Rural
 Growth of C&S Household over years
 Viewership Split by languages & Genre
 GRPs Contribution – Analog & Digital
 Marketwise universe contribution
 Marketwise C&S penetration
 Outlook 2011
India – Its happening NOW!!!
 India – Growth Indicator

Buoyant Rural
economy & consumer
Second fastest growing
markets, growing at a
economy in the world
faster pace than the
despite the Global
Urban counterparts.
slowdown effects. GDP
Many Global
grew at around 7.4%
Corporations queuing
during FY 09-10
up to capitalise on the
opportunities

Indian Govt. aims at

aggressive growth rate
Per Capita income in
of 9 to 10% annually for
India is US$ 740, and is
next 25 years resulting
expected to increase to
into becoming one of
US$ 2000 till 2016-17
the largest economies
of the world

Source: India Brand Equity foundation & Industry Sources

 India’s GDP will match that of US by 2050

India will overtake

Canada Italy by France UK by Germany Japan by

by 2012 2017 by 2020 2022 by 2023 2028

World’s no 3 economy by 2050

GDP estimations 2050 in US$ (Trillion)

80 71
60
39 38
40
20
0
China USA India

Source: Goldman Sachs BRIC Report

 India is now metamorphosed into a global
brand image

• India is likely become the fifth largest consumer market in the

India-Second Fasted world by 2025
Growing Economy • According to World Bank India’s GDP ranks 5th pertaining to
Purchasing Power Parity (PPP); after USA, Japan & China

India – 3rd favorite • On a cumulative basis, the FDI equity inflows received by India
stood at US$ 20.92 billion during April-December 2009
market in global
foreign direct • Sectors attracting highest FDI Equity Inflows-Services Sector,
investment Telecommunications, Housing and Real Estate

Indian companies are

• Tata Steel’s acquisition of Corus, UK for $ 12.1 BN
turning MNCs • United Spirits’ acquisition of Whyte & Mackay, UKfor $1.2 BN
through M&As • Bennett Coleman & Co Ltd(BCCL)acquired Britain’s Virgin Radio
Globally

Source: India Brand Equity foundation, CIA world Fact book, & McKinsey Global Institute
 Young India with higher disposable income

India has largest young population in the world

66% of Indian’s Population is below the 35 yrs of Age

A sustainable young population means

• A longstanding productive working population
• A huge domestic consumer market

Households with annual income of more than Rs. 10 million

will almost triple

Source: India Today & Industry Sources

 India is most attractive emerging Retail market
for investment

India’s overall retail sector is

The Indian retail market, expected to rise to US$ 833
the 5th largest retail billion by 2013 and to US$ 1.3
destination globally trillion by 2018, at CAGR of
10%.

Current organized Retail in

India targets 300 million Urban
Middle class & 200 million
Rural Rich- this market size is
estimated to be around 100
Billion

Source: India Brand Equity foundation& Industry Reports

India – at a glance
 India – a diverse country

 More than 1 billion people

 Urban: Rural ratio 30:70

 No. of States – 29
 7 Union Territories

 No. of Languages
 18 Official Languages

 No of local dialects
 More than 1500 dialects
 Key Parameters

Parameters INDIA
( All figs in Millions. Excl of %)
Population 1173.1MN
Population Under 15 30.5%
Adult Literacy 61%
Exchange Rates 46.07 (Rs per $)
No of Households 231m
Average no. per household 5.0

Source: TRAI, The Economist, CIA World Fact Book & TAM
 The Economic Construct

Parameters INDIA
GDP $1.43 trillion
Origins of GDP % of total
Agriculture 16.1%
Industry 28.6%
Services 55.3%
Structure of Employment % of total
Agriculture 52%
Industry 14%
Services 34%

India’s GDP is expected to grow at 9.2% in the year 2010-11 compared to 7.4% in
the year 2009-10

Source: Govt of India , The Economist & CIA World Fact Book
 India -Key Media Indicators

Parameters INDIA
( All figs in Millions. Excl of %)
TV Households 141
Total Net Advertising Spend US$ 5133
% of GDP 0.46%
Fixed Telephone Line Subscribers 35
Mobile Subscribers 752
Total Cable & Satellite Household 116
Analog 90
Digital 26
C&S as % of Total TV 82%
Total Broadband Internet Subscribers 10.92

Source: TAM, TRAI & Pitch - Madison Advertising Outlook-2010

 Population Break Up

Population Split
R1 R2 R3 R4 SEC : A SEC : C SEC : D SEC : E

R4 SEC : D
29% 7%

SEC : C
Urban SEC : E
7%
31% 9%
R3 SEC : B
28% 5% SEC : A
R1
R2 3% 3%
9%

Source: IRS | Age: 12 years + | All India

 Socio Economic Classification

SOCIO ECONOMIC CLASSIFICATION (URBAN) GRID

School upto 4 Some Graduate / Graduate /

School
yrs / literate but SSC / College but Post Post
Occupation Illiterate 5-9
no formal HSC not Graduate - Graduate -
years
schooling Graduate General Professional
Unskilled Workers E2 E2 E1 D D D D
Skilled Workers E2 E1 D C C B2 B2
Petty Traders E2 D D C C B2 B2
Shop Owners D D C B2 B1 A2 A2
B'Men / Indst. With employees : 0 D C B2 B1 A2 A2 A1
1 to 9 C B2 B2 B1 A2 A1 A1
10 + B1 B1 A2 A2 A1 A1 A1
Self Employed Professionals D D D B2 B1 A2 A1
Clerical / Salesmen D D D D B2 B1 B1
Supervisory level D D D D B2 B1 A2
Officers / Executives - Junior C C C B2 B1 A2 A2
Officers/Executives - Middle/Senior B1 B1 B1 B1 A2 A1 A1

Socio Economic classification based on the education & income of the chief wage earner of the house
 Socio Economic Classification

RURAL Classification GRID

Type of Dwelling/House
Education
Pucca Semi Pucca Kuchha
Illiterate R4 R4 R4
Literate but formal Edu R3 R4 R4
Upto 4th Std R3 R3 R4
5th to 9th Std R3 R3 R4
SSC/HSC R2 R3 R3
College but not Grad R1 R2 R3
Grad/PG (Gen) R1 R2 R3
Grad/PG (Prof) R1 R2 R3

Rural classification based on the education & the type of the house
Indian Media
 Reach of various Media (Urban + Rural)

% Reach
70
60 57

50 44
40
30
20 18
20
10 5 3
0
TV Satellite TV Print Radio Cinema Internet

Source: IRS 2010 Q3| All India | 12yrs + | All SEC | Urban+Rural
 Reach of various Media - Urban

% Reach
90 82
80 72
70
60
50
40 36
30 22
20
9 7
10
0
TV Satellite TV Print Radio Cinema Internet

Source: IRS 2010 Q3| All India | 12yrs + | All SEC| Urban
 Television Channels & Viewership by language

Total TV Channels
575

Terrestrial Cable & Satellite

27 channels 548 channels
1.7% Share 97.8% Share

Local Cable
5 channels
6.5% Share

Hindi English Vernacular Multi feed Others

72 channels 37 channels 176 channels 29 channels 261 channels
46 % Share 2.5% Share 37.9% Share 9.9 % Share 1.5 % Share

Source: TAM | Market: All India| TG: All C&S 4+ | Multiple feeds- Channels Having Language feed in more than one language(Eng/Hin/vernacular)
 TV Audience Measurement systems

Parameters aMap TAM

No. of Metered Homes( Analog + Digital) 7200 8000
Town Classes covered .1mn + Towns .1mn+ Towns & Mah LCI
No. of Cities covered 87 162
Geography Urban Urban
Gender R R
Age Group R R
Socio Economic Classification R R
Education R
Working Status R
Occupation/Profession R
Income Levels R
Ownership R
Type of Dwelling R
Pan Indian Sampling R R
Viewership Update Daily Weekly
 Print - Readers in India are spoilt for choices

Total Registered Titles

Total Dailies &

Periodicals
62483

Hindi English Vernacular

24927 9064 28492

• Print has more than 10000+ unique titles in India

• 46% of the registered publications are in Vernacular language

Source: Registrar of Newspapers For India

 Research in Print

There are two sources of information for print evaluation - Indian Readership Survey &
National Readership Survey

The Audit Bureau of Circulation (ABC) is a body that ratifies the circulation figures of the
publications but is not used as a primary source for evaluation of publications

Out of these above survey NRS has not been updated since 2006, while IRS updates its
survey results every quarter

The IRS provides both the Average Issue Readership (AIR) which based on whether the
respondent has read a publication within its last period of publication (last one day for
dailies, last one month for monthlies etc) as well as Total Readership

It covers both Urban & Rural India under its survey representing around 876 Million
Individual across the country above the age of 12 Yrs
 Top Dailies and Magazines

Reach in Reach in
Rank Top 10 Dailies Lang Rank Top 10 Magazines Lang Freq
MN MN
1 Dainik Jagran Hin 16.0 1 Vanitha (Mal) Mal F 2.7
2 Dainik Bhaskar Hin 13.5 2 Saras Salil Hin F 2.0
3 Hindustan Hin 10.8 3 India Today Eng W 1.8
4 Malayala Manorama Mal 9.9 4 Malayala Manorama Mal W 1.3
5 Amar Ujala Hin 8.6 5 India Today Hin W 1.2
6 Daily Thanthi Tam 7.2 6 Kumudam Tam W 1.2
7 The Times of India Eng 7.3 7 Meri Saheli Hin W 1.2
8 Lokmat Mar 7.8 8 Grih shobha Hin W 1.2
9 Mathrubhumi Mal 6.7 9 Cricket Samrat Hin W 1.1
10 Rajasthan Patrika Hin 7.2 10 Grehlakshmi Hin W 1.1

Source: IRS 2010 Q3| Reach in MN indicate Average issue readership(AIR)

 Radio – around 250 Private FM Stations

 The radio sector is poised for an exponential growth in India.

 There is a proposal for allowing 806 private FM Radio stations in Phase III
 In addition, All India Radio (AIR) is getting ready to launch a total of 320 FM radio
stations
 Currently there are around 250 FM stations across 90 Cities
Radio TYPE Markets
GROUP- 1 11
GROUP- 2 24
PRIMARY CHANNEL STATIONS GROUP- 3 28
GROUP- 4 45
GROUP- 5 80
GROUP- A 9
GROUP- B 19
VIVIDH BHARATI STATIONS
GROUP- C 12
VB NETWORK 30
Private FM Stations 34 FM Stations 247
 Research/ Measurement in Radio

Radio Audience Measurement (RAM) is an independent division of TAM Media

Research constituted in March ’07.

Market Coverage: Mumbai, Delhi and Bangalore & Kolkata

RAM measures anywhere (In Home, In Car, At Work/College/School & Elsewhere)

consumed Radio Listenership at a quarter hour level

RAM uses Diary system to measure Radio Listenership. RAM Universe is All People, 12+
years owning an FM Device

RAM delivers listenership data on weekly basis through Radio Advisor software

Listener Definition: A panel member is reached if he/she listens to any particular radio
station for at least 8 minutes continuous OR discontinuous in any given quarter hour
 Internet in India

Active Internet Users(in Milion)

60
52
50
42
40

30
Growth of Broadband in India
20
Subscribers in
11
Millions 2006 2007 2008 2009 2010
10
2 Subscribers 2.34 3.13 5.45 7.57 10.92
0
% Growth 34% 74% 39% 44%
2000 2004 2008 2010

The total number of active internet users in India has grown by more than 250% in last decade.
Similarly broadband users in India have been consistently growing on an average of around 50%

Source: IAMAI & TRAI| Active users – using internet at least once a month
 Summary of media performance on Key Metrics

Parameters Press TV Outdoor Radio Internet Cinema

Syndicated Research of medium P P X P P P
Measuring Delivery for Communication X P X X X X
Monitoring of Ads P P X P X X
Critical Mass P P P P P P
Interactivity of Medium X X X X X X
Industry Body P P X P P X
 Present scenario

Ad Rev in INR million

120000
2008 2009 2010
100000

80000

60000

40000

20000

0
TV Press Radio Cinema Outdoor Internet
Count of Titles /
Channels / Stations 500+ 62000+ 250+

Advertising revenue is the major source of income for Media companies in India

Source: Pitch-Madison Media Advertising Outlook2011

 Trend of Advertising revenues in India

Ad revenues
TV Press Outdoor Radio Internet Cinema in INR billion

2010 45 42 6 4 3
236

2009 43 39 6 3 2 187

2008 40 47 7 32
207

2007 40 48 7 31
177

2006 41 48 7 21 145

2005 42 48 7 21
119

0% 20% 40% 60% 80% 100%

Source:: Pitch-Madison Media Advertising Outlook2011

A closer look at Television in India
 More than 100 Million C&S TV households in
India
Digital
Households
26 mn
Analog Non C&S
Households Households
90 mn 25 mn

Total TV
Owing
Households
141 mn

Total Households in India

231 mn

Source: TAM | Urban + Rural

 Cable & Satellite households in India has
grown by around 11%
% Growth

C&S C&S
Digital 31% Digital
20 Mn 26 Mn

C&S Analog C&S Analog

12%
83 Mn 90 Mn

TV Owning Households
6% TV Owning Households
134 Mn 141 Mn

3%
Total Households 223 Mn Total Households 231 Mn

2010 2011
Source: TAM | Urban + Rural
 Digital Growth driven by rural market

Digital Digital
9 Mn 17 Mn
C&S Analog
C&S Analog
39 Mn
51 Mn

TV Owning TV Owning
Households 68 Mn Households 73 Mn

Total Households 78 Mn Total Households 153 Mn

Urban Household 2011 Rural Household 2011

Source: TAM
 C&S enabled homes on the rise in India

% Rise as
compared to 42% 63% 109% 140% 170%
2003
Analogue Cable Digital Cable
140
120
100 26
20
80 15
2
60
40 83 90
68 75
61
20 43

0
2003 2005 2006 2009 2010 2011

No. of C&S HHs has grown by 170% in last 8 years

Source: TAM & NRS | Urban + Rural

 Viewership by language & Genre coming
# of Channel
Vernacu Multi
Broad Genre Hindi English Others Total
lar Feed
Entertainment 22 52 5 79
Movie 12 6 1 7 26
News 26 43 13 2 84
Cable 1 4 5
Kids 1 6 1 1 9
Others 8 30 5 1 251 295
Music 1 18 8 2 29
Sports 1 4 5 10
Terrestrial 2 25 27
Infotainment 5 2 7
Lifestyle 3 1 4

Total 72 176 29 37 261 575

% Share of Viewership
Vernacu Multi
Broad Genre Hindi English Others Total
lar Feed
Entertainment 29 24 0 53
Movie 11 2 0 1 14
News 4 3 0 0 7
Cable 6 0 6
Kids 0 6 0 0 6
Others 0 2 0 0 1 4
Music 0 2 2 0 4
Sports 1 1 1 3
Terrestrial 1 1 2
Infotainment 1 0 1
Lifestyle 0 0 0

Total 46 40 10 3 1 100
Source: TAM | Market: All India| TG: All C&S 4+
 GRP contribution between Analog & Digital

GRP Contribution
Large Network GRPs ANALOG DIGITAL
All TV 3565.0 89% 11%

Star India Network 554.4 85% 15%

Zee Network 493.9 69% 16%
SunTV Network 490.6 85% 14%
Sony Network 352.8 77% 23%
Viacom & TV 18 & IBN Network 292.3 86% 14%
ETV Network 107.5 92% 10%
Turner 104.2 68% 7%
Turner Entertainment 73.9 61% 6%
Disney 70.6 89% 11%
UTV 67.2 70% 10%
Asianet Communications Ltd. 53.8 92% 8%
Maa Television Network 40.3 45% 3%
Sahara One Entertainment 37.0 58% 9%
NIMBUS Communications Limited 37.0 64% 3%
TV9 33.6 92% 8%

Source: TAM| Market: All India| TG: CS 4+

 Marketwise Universe Contribution

25% C&S Penetration

21%
20%

15%
11%
10% 8% 8% 8% 8% 8%
6% 6%
5% 4%
5% 2% 2% 1% 1% 0%
0%

Chattisgarh
WB

AP

Raj
UP

Guj

TN

PHCHP

Bihar
DELHI

MP

Assam
Karnataka

Kerala
Maharashtra

Orissa
Source: TAM
 Marketwise Cable & Satellite Penetration

C&S Penetration
99% 97%
100% 94% 94% 93%
89% 89%
90% 85%
77% 79% 80% 76% 78% 75% 81% 81%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Madhya…

Bihar
Chattisgarh
Karnataka

Kerala
Gujarat

PHCHP

Assam
Orissa
West Bengal

Rajastan
Uttar Pradesh

Tamil Nadu
DELHI
Maharashtra

Andhra Pradesh

Source: TAM
Outlook 2011
 Localization, Super niche & Customized
solutions to drive the media industry growth
 Print
 Print share in ad pie is expected to shrink from 42.3% to 40.8%
 More innovation, rate correction will be the norm in the year 2011
 Special Interest magazines will still continue to grow, currently growing at the
rate of 100%

 TV
 TV Revenues are expected to grow by 20%
 Advertising revenues to the Channel revenues will continue to be higher than
the subscription revenues
 But share of subscription is only likely to grow overall, with growing digital
penetration& increased addressability
 With increasing strength of regional channels, big network will focus on Regional
space due to geographic addressability

Source:: Pitch-Madison Media Advertising Outlook2011

 Radio
 Licensing of Phase III & policy changes is expected to drive the growth for radio
 Due to Phase III licensing 700 more FM stations expected to be launched
 Radio is expected to witness only 15% rise in overall ad revenues compared to
30% growth in the year 2010
 OOH
 The Medium is expected to witness 15% growth in Revenues compared to 27%
growth
 Business Interest & Expenses will be high on gaining capabilities , delivery
efficiencies in upcountry & rural market
 Internet
 Internet is expected to eat into print share
 The Medium is expected to grow by 35%
 Cinema
 Revenues on Cinema Medium is expected to witness a healthy 10% growth
Source:: Pitch-Madison Media Advertising Outlook2011
 2011 - Ad revenue growth will be driven by TV

2010 Ad Rev. 2011 Ad Rev. Growth%

140 40
126
120 113 35 35
Ad revenues in INR billion

105
100 30
100

% Growth
25
80
20 20
60 15
15 15
40 13
10 10
20 14 17 5
9 10 7 9
1 1
0 0
TV Press Outdoor Radio Internet Cinema

Source: Pitch-Madison Media Advertising Outlook