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: Television Vs the Rest - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Nov 8, 2007

    Media: Television Vs the Rest

    The Indian entertainment and media Industry is divided into different segments of television, print, filmed entertainment, radio, music, live entertainment and internet. In this article, we shall see how television stacks up against other media such as print, radio, internet, cinema in terms of reach, average time spent and projected revenue share.

    Reach of Different Media:

    Urban areas:
    The Market Research Society of India has done eight Socio-economic Classifications (“SEC”) in urban India based on the occupation and education of the chief wage earner of the household. The eight SEC in urban India are labeled A1, A2, B1, B2, C, D, E1 and E2. A1 denotes the uppermost socio-economic class and E2 denotes the lowest socio-economic class. Set forth below is a summary of media penetration in urban India across the various media categories (excluding the Internet) based on the SEC classification and the percentage of people in each SEC with access to such media.

      Print TV Radio Cinema
    SEC Reach in millions of persons % of total in category Reach in millions of persons % of total in category Reach in millions of persons % of total in category Reach in millions of persons % of total in category
                     
    A1 7.6 95.2 7.6 96.1 2.9 36.5 2.4 30.6
    A2 13.9 90.5 14.5 94.5 4.6 29.8 3.9 25.1
    B1,B2 32.0 81.1 35.7 90.6 9.7 24.7 7.5 19.1
    C 33.8 69.5 41.7 85.8 11.2 23.1 8.8 18.1
    D 29.3 52.6 43.2 77.5 11.4 20.5 9.5 17.1
    E1,E2 21.0 30.1 45.3 65 11.0 15.8 11.0 15.7
    Total 137.5   188.0   50.9   43.1  

    Source: Jagran Prakashan IPO prospectus

    If you would like to compare Balaji Telefilms with Zee Entertainment you can click here.

    Rural areas:
    The IRS has designated four SEC in rural India in terms of the type of house and the education of the chief wage earner of the household. The four SEC are labeled R1, R2, R3, and R4. R1 denotes the uppermost socio-economic class and R4 denotes the lowest such socio-economic class. Set forth below is a summary of media penetration in rural India across the various media categories (excluding the Internet) based on SEC and the percentage of people in each SEC with access to such media.

      Print TV Radio Cinema
    SEC Reach in millions of persons % of total in category Reach in millions of persons % of total in category Reach in millions of persons % of total in category Reach in millions of persons % of total in category
                     
    R1 14.1 67.7 15.2 72.8 7.2 34.6 2.7 12.9
    R2 33.1 55.4 38.3 64.2 17.3 29.0 6.9 11.5
    R3 78.4 36.9 109.6 51.6 49.5 23.3 18.9 8.9
    R4 28.3 11.4 76.5 30.8 36.0 14.5 17.1 6.9
    Total 154   240   110   46  

    Among all the sub segments of the media and entertainment industry, television not only has the highest reach but is also on a high growth trajectory as households owning a television set have increased from 82 m in CY 02 to 112 m in CY 06. (Source: NRS 2006)

    Source: Zee Entertainment Presentation August 07

    The above table clearly shows that television is by far the most consumed media on a day-to-day basis. Television has become an indispensable part of the lives of the people. The fact that on an average a viewer spends so much time on television daily lends credence to the projection that people would be willing to pay higher subscription charges for CAS and DTH. At present, the Average Revenue per user (ARPU) is very low in India compared to developing and developed countries. Eg: At present under CAS, viewers are paying only Rs 5 per month for viewing the channel ‘Zee Cinema’ which telecasts many popular Hindi movies every month. Many people spend Rs 100 per head for watching a single movie in a multiplex theatre. Thus, we expect the ARPU to increase in the future as the regulator lifts the cap on subscription rates.

    Revenue share:
    Now let us have a look at the current revenue share of the different segments of the media and entertainment industry and their projected share in 2011 as per the FICCI PWC report on the Indian entertainment and media industry.

    The television industry revenues are expected to grow from the present size of Rs 191 bn to Rs 519 bn by 2011, implying a 22% compounded annual growth rate. Subscription revenues are projected to be the key growth driver for the Indian television industry over the next five years. The number of paid subscribers as well as the average revenue per user is projected to increase.

    India’s robust economic growth has an attractive proxy in its advertising industry. The ad spend is a mere 0.4% of the GDP compared to 1.4% in the U S. Advertising revenue of the television industry is projected to grow from Rs 66 bn in 2006 to Rs 123 bn by 2011, implying a CAGR of 13%. Thus it is expected that not only will the television industry continue to be the largest sub segment of the media and entertainment industry but its share would also increase.

     

     

    Equitymaster requests your view! Post a comment on "Media: Television Vs the Rest". 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.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    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 18, 2017 (Close)

    S&P BSE TECK 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS