X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Media: Crystal gazing... - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Mar 22, 2007

    Media: Crystal gazing...

    The media and entertainment industry has achieved a phenomenal growth of 20% YoY in CY06. The growth numbers projected by the FICCI - PriceWaterhouse Coopers report on the Indian entertainment and media industry, unfolds the bright prospects that this sector has to offer going forward.

    Key Findings
    (Rs bn) FY06 FY11E CAGR
    M&E Industry 437 1,000 23.0%
    Television 191 519 28.4%
    Filmed entertainment 85 175 19.8%
    Print media 128 232 16.0%
    Radio 5 17 35.8%
    Music 7 9 6.5%
    Live entertainment 9 19 20.5%
    Out-of-home advertising 10 22 21.8%
    Internet advertising 2 10 49.5%

    Source: FICCI PriceWaterhouse report

    The year 2006 marked the start of convergence for the media industry. With technological advancements and policy initiatives taken by the Indian government to encourage the inflow of investment and initiatives by private media companies the ball has been set rolling for the industry. Since television and filmed entertainment constitute major areas in media sector, we shall give special attention to them.

    Television Industry

    In the television industry, currently advertising revenues are half the global average. Increased advertising spends coming from pharmaceutical, telecom, FMCG and financial services companies have the potential to double its spends due to increasing consumerism and favorable demographic factors. The new distribution platforms such as DTH, digital cable and IPTV (internet protocol television) are expected to push up subscriber base and subscription revenues. Although the initial roll out of the CAS regime has been slow, subscription revenues are expected to be the key growth driver for the broadcasters over the next five years. Increased rates and growing demand in pay TV homes will lead to increase in subscription revenues. As far as the pricing is concerned, instead of the regulatory body governing the same, it will be determined by the competitive pricing mechanism in the market.

    Filmed entertainment

    The Indian film industry is said to be one of the largest in the world with close to 1,000 films made every year. In recent years, the Indian film industry has been driven by growth in multiplexes. Technology is helping the Indian film industry in all the spheres of film production, film exhibition and marketing. The budgets financed for film producing, the way they are made and the kind of audiences they are made for has changed the entire face of film industry. Profitability of players in the multiplex cinemas space is expected to improve; but increasing bargaining power of producers, high real estate prices, stiff competition and the eventual loss of entertainment tax benefits are potential downsides.

    There is an ample opportunity for growth in the home video segment. Moser Baer, Nimbus and ADAG group are the key players foraying into this business. Regional cinema and dubbed international films are gaining much importance. DVDs and the Internet have changed the trend of viewers hip of regional films since it is no longer confined to specific areas. Merchandise products' sale with a film is a new trend picking up in India.

    Conclusion

    Convergence will continue to play a crucial role in the development of the Indian entertainment and media industry with increasing consumerism in a converged media world. There is great potential for the media industry to grow since larger number of people are still untapped by any form of media. Over the last three years, the media and entertainment industry has secured foreign investment of over Rs 4 bn. Favorable policy initiatives will move the industry towards a better intellectual property rights regime. Parallely, growing investment and surge in technological advancements offers ample growth scope to the industry.

    We shall follow up this article with our perspective on the other emerging and high growth areas in the media sector in the near future.

     

     

    Equitymaster requests your view! Post a comment on "Media: Crystal gazing...". Click here!

      
     

    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    Zee Ent: Advertising drives revenues (Quarterly Results Update - Detailed)

    Aug 1, 2016

    Zee Entertainment has announced its results for the first quarter of the financial year 2016-17 (1QFY17). The company has reported 18.5% YoY growth in sales and a 13.7% YoY growth in profit after tax.

    Zee Ent: Taxes, lower other income mar bottomline (Quarterly Results Update - Detailed)

    Feb 3, 2016

    Zee Entertainment has announced the third quarter results of financial year 2015-2016 (3QFY16). While the topline grew by 17% YoY, bottomline fell 11% YoY during the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE TECK


    Aug 16, 2017 (Close)

    S&P BSE TECK 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS