I)

Entertainment Industry in India: Entertainment Industry in India has registered an explosive growth in last two decades making it

one of the fastest emerging industries in India. Television itself witnessed its transformation from a single government owned channels to a medium telecasting more than 300 national and regional channels. At present Indian film industry or Bollywood is a perfect combination of entertainment and commercial sector, producing close to thousand movies in a year in various Indian languages. Indian film industry supersedes Hollywood in terms of movie production quantity by more than three times. As per the recent report by PricewaterhouseCooopers (PwC), Indians are likely to spend more on entertainment in the coming years with a steady growth in their disposable income. And as per the combined survey report by KMPG and FICCI, the entertainment industry in India is expected to expand by 12.5% every year and is likely to reach US$ 20.09 billion by the year 2013. The Ministry of Information and Broadcasting (I&B) plans to push for financial incentives to ease the import of equipment, including set-top boxes, to assist in speeding up the process of converting India's cable TV distribution system from analogue to digital. The steps being considered include raising the foreign direct investment (FDI) limit for cable companies to 74 per cent from current 49 per cent and launching awareness campaigns on the merits of digital cable. II) Zee Entertainment Enterprises Limited:

1.

History

Subhash Chandra, one of India's leading entrepreneurs, who sought to create a revolution by facilitating the convergence of media and communication with a mirror into the common man's life and ways, created Zee Telefilms Limited in October 1992. This enterprise was to act as the chief content provider for Zee TV - India's first Hindi satellite channel. Zee Telefilms Limited (ZTL) is now known as Zee Entertainment Enterprises Limited (ZEE). Very early in the aftermath of launching ZTL, Subhash Chandra entered into a joint venture with the STAR group of companies. This pact was to augment television broadcasting in India and deliver higher quality of programming content. In another development around the same time, media mogul, Rupert Murdoch's News Corp Limited acquired the rights to distribute STAR's satellite TV content. This made News Corp a de facto partner of ZEE. To strengthen their network further, ZEE and News Corp co-founded Siticable, a leading cable MSO. In March 2000 however, ZEE bought News Corp's stake in both the broadcasting business and Siticable. 2. Mission & Values To become the worlds leading global media company from the emerging markets. As a Corporation, we will be driven by innovation & creativity and would focus on growth while delivering exceptional value to our customers, our viewers and all our stakeholders.

3.

Key Awards

a) Subhash Chandra awarded the '2011 International Emmy Directorate Award' b) Zee Entertainment Enterprises is presented with Certificate of Excellence at The
Second Annual Inc. India 500 Awards in 2011.

c) Zee Entertainment Enterprises Limited presented the Dun & Bradstreet - Rolta
Corporate Awards in 2011.

d) ZEE awarded "BSE Award for Maximisation of Shareholders Wealth - 2000" e) Subhash Chandra honoured with the "Dadasaheb Phalke Academy Trophy" for his
devoted services to Indian Film Industry in the Satellite Sector - 2003.
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4. Strengths  Leading broadcaster in India and overseas for South East Asian content  First mover advantage across genres  Widest offering of channels by a single broadcaster in the country  Across genres, our channels are either leaders or strong contenders for the leadership Position  Diversified revenue streams: advertising and subscription  Diversified customer base across167 countries  Operating the largest pay TV distribution platform in the country, Zee Turner  Large network gives tremendous leverage with advertisers  Cost conscious approach towards business  Affiliate companies have leading presence across the media value chain cable and distribution, direct-to-home satellite services, digital media amongst others

5.

Strategies  Inspire creativity  Continue to run our business as best in class, with viewer satisfaction as the ultimate goal.  Enhance our leadership position in the genres we compete.  Continuous innovation to stay ahead of the curve and seize growth opportunities  Invest in the business in a focused, disciplined way and achieve superior financial performance.  To use the strong cash flows of our business to improve returns to shareholders  Reaffirm our commitment to highest level of integrity and professionalism throughout our business.

6.

Business of ZEE: ZEE has given birth to multitudinous benchmarks. With its programming, it has

created revolution after revolution. In more ways than one it has paved the way for new age
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television to gain acceptance and following. ZEE started with delivering hits like 'Tara', 'Antakshari', 'Sa Re Ga Ma Pa', 'Hasratein', 'Amaanat' and 'India's Most Wanted'. These soaps, serials and contests created cults in themselves aggregating audiences from all classes and regions. From being India's first satellite broadcast network, ZEE has spread its wings to being an international media enterprise. Today, ZEE owns and operates more than 20 channels that cater to different audiences and belong to different genres of entertainment. ZEE is credited with being the prime mover in regional markets with regional programming. It started with the northern markets and has since extended its service to 4 other markets. In 2002, ZEE acquired a majority stake in ETC Network, the market leader in music and Punjabi language programming.ZEE is the largest producer and aggregator of Hindi programming in the world. With 100,000 hours of original programming in the library, ZEE is one of the most popular entertainment brands in India. It was ranked as the ninth most popular brand within a decade of its launch, the largest MSO in India with an estimated reach of 6.5 million households, one of the largest Indian multiple distribution platforms with an estimated reach of over 500 mllion viewers in over 167 countries globally including USA, Canada, Europe, Africa, the Middle East, South East Asia, Australia & New Zealand and the only media company which is part of the BSE-30 Index (Sensex).

7.

Channels of ZEE:

a) Regional Channels The regional entertainment genre is a nascent vertical. Given the regional diversity in language, culture and literature in India, there exists exponential growth potential of media consumption in local languages. This is reflected in the rapid proliferation and growing viewership of regional media. Increasing advertisers' preference in regional media justifies the consuming potential of regional media audience.

Zee Entertainment is already the leading provider of entertainment content across genres in the Hindi and English languages. With leading channels like Zee Marathi, Zee Bangla, Zee Telugu, Zee Kannada, Zee Tamizh and ETC Channel Punjabi within its fold, Zee Entertainment would now have an unparalleled reach across the country in the fast growing regional markets. This move is part of ZEEs continuing efforts to improve long-term shareholder value.

b) Bollywood Channels Bollywood - The Indian Film industry is acclaimed as one of the largest film industries of the world. The industry produces over 1000 films every year which is watched by almost 14 million Indians everyday! Zee, a pioneer of television entertainment industry in India, is today among the largest producers and aggregator of Hindi programming in the world. It houses an extensive library with over 80,000 hours of television content. ZEE's Hindi movie channels, Zee Cinema, Zee Premier, Zee Action and Zee Classic maintain its objective in delivering the best of programming in the Hindi Movies Genre.

c) Sports Zee Entertainment has varied interests in the Sports Business, with a majority stake in Taj Television, the group has in its fold multiple sports channels. ZEE's aim is to offer it's viewers the best of sports action round the clock. As Indias leading sports network, ZEE understands that the sports viewers need channels that have a focus on particular sport thus Ten Cricket

with maximum cricket content and Ten Action+ with focus on football were launched recently along with the ever popular Ten Sports Channel. All these sports channels are distributed exclusively to cable operators, hotels and CAS territories in India by Taj Television India Pvt. Ltd. and are available on all DTH platforms.

d) English Entertainment Movies...Fashion...Music...Entertainment...ZEE's English bouquet of channels comprises ALL...Today, Zee Cafe, Zee Trendz and Zee Studio are premium channels of the network, showcasing the finest English content from across the globe. The channels cater to the higher SECs of the TV-viewing audience in India. Boasting of an expansive library comprising a healthy mix of award-winning films and mass entertainment movies, to bringing in the latest global trends, seasons of the top rated shows from the United States to the Indian viewer alongside the LIVE telecast of some of the most spectacular and sought after world events...Zee English Entertainment has always aimed to bring in the best of international content to Indian audiences year after year.

e) Niche Offerings On an average, a woman spends at least 2.8 hours per day on cooking. The average time a television viewer spends on food shows is 8 minutes. Moreover food is no longer restricted to the

female audience only. The emerging food genre has broadened to wider demographics with youngsters and urban metrosexual men too, taking a keen interest in food. The content too has grown from How to cook shows to Food as lifestyle shows. Niche is the way forward for the Indian Television industry. With 106 shows across the entire television space, the time is ripe for the countrys first Food Channel. Food is the new entertainment and Zee Khana Khazana is the new destination for entertainment.

f) Music From classical to devotional music, popular bollywood music to remixes...India is the Mecca for music. ZEE has strengthened its bouquet in music genre by launching ETC, ETC Channel Punjabi and Zing. Today our channels stand as market leaders in their respective genres of music continue creating an invigorating culture and touching lives of people through music.

g) Alternate Lifestyle Spirituality and Religion form an integral part of our culture and life. In today's stressful life, they help an individual gain insight into his/her inner life, thereby helping them to lead a balanced life. Through regular practices of meditation and prayers, an individual is able to handle all kinds of stress and deal with the adversities of life in a better way. Our Alternate Lifestyle genre is aimed at awakening people to realize the spiritual aspects in their life and hence enriching lives.

h) Indian Filmed Entertainment

Zee Entertainment Enterprises Limited has launched Zee Entertainment Studios with 2 movie banners Zee Motion Pictures for mainstream films and Zee Limelight for films targeted at niche audiences. Hindi movie viewing in India has changed as an attitude and method. Multiplexes and digital cinemas have augmented the quality and quantity of movie viewing. The growth of ancillary markets like home entertainment, mobile music, satellite rights, growth of international revenues and the entry of well funded corporations that are aiming to consolidate the business have changed the scenario and made it a profitable corporation in itself. The new banners will support and have a strong influence of regional growth. The new banners will focus on script development, talent and film acquisition, production, distribution and marketing of films in initially Hindi and 5 regional languages Telegu, Tamil, Kannada, Bengali and Marathi. Managing all rights including music, video/ DVD, satellite/ cable/ pay-perview, hotels/ airlines, mobile and internet, executing the business globally. The aim is to be associated with 20 films in the first year in 6 languages and will eventually be transposed in 15 domestic and international locations.

i) International Business Spanning 5 continents, Zee reaches out to more than 500 million viewers in more than 167 countries. The South Asian diaspora is spread across the length and breadth of the world and is of relevance in most countries both financially and culturally. In the UK and the US, South Asians form one of the most respected and professionally accomplished communities. In other

parts of the world like Africa and Hong Kong, they are among the wealthiest sections of society.

South Asians have a strong sense of attachment with their roots and origins. This manifests itself through art, music, theatre and dance. Asians in the UK are very traditional and have maintained strong ethnic values because of their religious and cultural heritage. They also have a very strong community and sense of familial togetherness. Movies, songs, festivals and fairs are an integral part of entertainment and social gathering in day to day life. ZEE has always endeavored to network Indians worldwide and bind them by the values of culture. Hand in hand, ZEE has provided them with the best entertainment.

8.

Alliances & Partnerships ZEE's mission of continued sustainable growth has brought it thus far in the annals of the

media and television history and looks to guide its sails towards a fine future too. An important aspect of keeping an eye on the future was to foster external acquisitions and alliances to gain access to quality content and technology. With the home-grown measures of revenue generation in place and functioning well, this move of external affiliations with parties that complemented ZEE; in philosophy and in business brought in profits and goodwill alike.

Media Pro

To create greater value for the entire distribution value chain, Zee-Turner has recently entered into a 50:50 joint venture with Star-Den to form Media Pro Enterprise India Pvt. Ltd.
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The long term vision of this venture is to pool together resources of both the partners so as to address various anomalies of the present analogue distribution market, curb piracy, and introduce transparency by accelerating the pace of digitization in India, which will result in benefits to all stakeholders in the value chain. Zee Turner

A 74:26 joint venture between Zee and Turner International to distribute the Zee Turner pay channel bouquet in India and neighboring countries.A 74:26 joint venture between Zee and Turner International to distribute the Zee Turner pay channel bouquet. Ten Sports All the three Sports Channels, TEN Cricket, Ten Action + and TEN Sports are distributed in India by Taj Television India Pvt. Ltd.; a wholly owned subsidiary of Zee Entertainment Enterprises Limited. Zee Entertainment Enterprises Limited offers one of the largest sports bouquet in the subcontinent comprising of three channels - TEN Cricket, Ten Action + and TEN Sports catering to various sports segments. TEN bouquet of channels has digital studio facilities and integrated transmission services for various broadcast clients. With such an impressive line up of sports across the spectrum, TEN channels are the most watched sports channels by far across the subcontinent.

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9.

Financials at Glance:

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