Indian Media Scenario

Transcription

1 Indian Media Scenario March 2011

2 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

3 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

4 India Its happening NOW!!!

5 India Growth Indicator Second fastest growing economy in the world despite the Global slowdown effects. GDP grew at around 7.4% during FY Buoyant Rural economy & consumer markets, growing at a faster pace than the Urban counterparts. Many Global Corporations queuing up to capitalise on the opportunities Indian Govt. aims at aggressive growth rate of 9 to 10% annually for next 25 years resulting into becoming one of the largest economies of the world Per Capita income in India is US$ 740, and is expected to increase to US$ 2000 till Source: India Brand Equity foundation & Industry Sources

6 India s GDP will match that of US by 2050 India will overtake Canada by 2012 Italy by 2017 France by 2020 UK by 2022 Germany by 2023 Japan by 2028 World s no 3 economy by GDP estimations 2050 in US$ (Trillion) China USA India Source: Goldman Sachs BRIC Report

7 India is now metamorphosed into a global brand image India-Second Fasted Growing Economy India is likely become the fifth largest consumer market in the world by 2025 According to World Bank India s GDP ranks 5 th pertaining to Purchasing Power Parity (PPP); after USA, Japan & China India 3 rd favorite market in global foreign direct investment On a cumulative basis, the FDI equity inflows received by India stood at US$ billion during April-December 2009 Sectors attracting highest FDI Equity Inflows-Services Sector, Telecommunications, Housing and Real Estate Indian companies are turning MNCs through M&As Globally Tata Steel s acquisition of Corus, UK for $ 12.1 BN United Spirits acquisition of Whyte & Mackay, UKfor $1.2 BN Bennett Coleman & Co Ltd(BCCL)acquired Britain s Virgin Radio Source: India Brand Equity foundation, CIA world Fact book, & McKinsey Global Institute

8 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

9 India is most attractive emerging Retail market for investment The Indian retail market, the 5 th largest retail destination globally India s overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 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

10 India at a glance

11 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

12 Key Parameters Parameters INDIA ( All figs in Millions. Excl of %) Population MN Population Under % Adult Literacy 61% Exchange Rates (Rs per $) No of Households 231m Average no. per household 5.0 Source: TRAI, The Economist, CIA World Fact Book & TAM

13 The Economic Construct GDP Origins of GDP Parameters INDIA $1.43 trillion % 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 compared to 7.4% in the year Source: Govt of India, The Economist & CIA World Fact Book

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

15 Population Break Up Population Split R1 R2 R3 R4 SEC : A SEC : C SEC : D SEC : E R4 29% SEC : D 7% R3 28% R2 9% R1 3% Urban 31% SEC : C 7% SEC : B 5% SEC : A 3% SEC : E 9% Source: IRS Age: 12 years + All India

16 Socio Economic Classification Occupation SOCIO ECONOMIC CLASSIFICATION (URBAN) GRID Illiterate School upto 4 yrs / literate but no formal schooling School 5-9 years SSC / HSC Some College but not Graduate Graduate / Post Graduate - General Graduate / Post Graduate - 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 A 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

17 Socio Economic Classification Education RURAL Classification GRID Type of Dwelling/House 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

18 Indian Media

19 Reach of various Media (Urban + Rural) % Reach TV Satellite TV Print Radio Cinema Internet 5 3 Source: IRS 2010 Q3 All India 12yrs + All SEC Urban+Rural

20 Reach of various Media - Urban % Reach TV Satellite TV Print Radio Cinema Internet Source: IRS 2010 Q3 All India 12yrs + All SEC Urban

21 Television Channels & Viewership by language Total TV Channels 575 Terrestrial 27 channels 1.7% Share Cable & Satellite 548 channels 97.8% Share Local Cable 5 channels 6.5% Share Hindi 72 channels 46 % Share English 37 channels 2.5% Share Vernacular 176 channels 37.9% Share Multi feed 29 channels 9.9 % Share Others 261 channels 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)

22 TV Audience Measurement systems Parameters amap TAM No. of Metered Homes( Analog + Digital) Town Classes covered.1mn + Towns.1mn+ Towns & Mah LCI No. of Cities covered Geography Urban Urban Gender R R Age Group R R Socio Economic Classification R R Education Working Status Occupation/Profession Income Levels Ownership Type of Dwelling Pan Indian Sampling R R Viewership Update Daily Weekly R R R R R R

23 Print - Readers in India are spoilt for choices Total Registered Titles Total Dailies & Periodicals Hindi English 9064 Vernacular Print has more than unique titles in India 46% of the registered publications are in Vernacular language Source: Registrar of Newspapers For India

24 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

25 Top Dailies and Magazines Rank Top 10 Dailies Lang Reach in Reach in Rank Top 10 Magazines Lang Freq MN MN 1 Dainik Jagran Hin Vanitha (Mal) Mal F Dainik Bhaskar Hin Saras Salil Hin F Hindustan Hin India Today Eng W Malayala Manorama Mal Malayala Manorama Mal W Amar Ujala Hin India Today Hin W Daily Thanthi Tam Kumudam Tam W The Times of India Eng Meri Saheli Hin W Lokmat Mar Grih shobha Hin W Mathrubhumi Mal Cricket Samrat Hin W Rajasthan Patrika Hin Grehlakshmi Hin W 1.1 Source: IRS 2010 Q3 Reach in MN indicate Average issue readership(air)

26 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 GROUP PRIMARY CHANNEL STATIONS GROUP GROUP GROUP GROUP- A 9 VIVIDH BHARATI STATIONS GROUP- B 19 GROUP- C 12 VB NETWORK 30 Private FM Stations 34 FM Stations 247

27 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

28 Internet in India Active Internet Users(in Milion) Growth of Broadband in India Subscribers in Millions Subscribers % Growth 34% 74% 39% 44% 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

29 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

30 Present scenario Ad Rev in INR million Count of Titles / Channels / Stations TV Press Radio Cinema Outdoor Internet Advertising revenue is the major source of income for Media companies in India Source: Pitch-Madison Media Advertising Outlook2011

31 Trend of Advertising revenues in India TV Press Outdoor Radio Internet Cinema Ad revenues in INR billion % 20% 40% 60% 80% 100% Source:: Pitch-Madison Media Advertising Outlook2011

32 A closer look at Television in India

33 More than 100 Million C&S TV households in India Analog Households 90 mn Digital Households 26 mn Total TV Owing Households 141 mn Non C&S Households 25 mn Total Households in India 231 mn Source: TAM Urban + Rural

34 Cable & Satellite households in India has grown by around 11% % Growth C&S Digital 20 Mn C&S Analog 83 Mn 31% 12% C&S Digital 26 Mn C&S Analog 90 Mn TV Owning Households 134 Mn Total Households 223 Mn 6% 3% TV Owning Households 141 Mn Total Households 231 Mn Source: TAM Urban + Rural

35 Digital Growth driven by rural market Digital 9 Mn C&S Analog 51 Mn Digital 17 Mn C&S Analog 39 Mn TV Owning Households 68 Mn TV Owning Households 73 Mn Total Households 78 Mn Total Households 153 Mn Urban Household 2011 Rural Household 2011 Source: TAM

36 C&S enabled homes on the rise in India % Rise as compared to % 63% 109% 140% Analogue Cable Digital Cable 170% No. of C&S HHs has grown by 170% in last 8 years Source: TAM & NRS Urban + Rural

37 Viewership by language & Genre coming Broad Genre Hindi Vernacu lar # of Channel Multi English Others Total Feed Entertainment Movie News Cable Kids Others Music Sports Terrestrial Infotainment Lifestyle Total Broad Genre Hindi Vernacu lar % Share of Viewership Multi English Others Total Feed Entertainment Movie News Cable Kids Others Music Sports Terrestrial Infotainment Lifestyle Source: TAM Market: All India TG: All C&S 4+ Total

38 GRP contribution between Analog & Digital GRP Contribution Large Network GRPs ANALOG DIGITAL All TV % 11% Star India Network % 15% Zee Network % 16% SunTV Network % 14% Sony Network % 23% Viacom & TV 18 & IBN Network % 14% ETV Network % 10% Turner % 7% Turner Entertainment % 6% Disney % 11% UTV % 10% Asianet Communications Ltd % 8% Maa Television Network % 3% Sahara One Entertainment % 9% NIMBUS Communications Limited % 3% TV % 8% Source: TAM Market: All India TG: CS 4+

39 Maharashtra UP DELHI WB Guj AP TN Karnataka PHCHP MP Raj Kerala Chattisgarh Orissa Bihar Assam Marketwise Universe Contribution 25% 20% 15% 10% 21% 11% C&S Penetration 8% 8% 8% 8% 8% 6% 6% 5% 4% 5% 0% 2% 2% 1% 1% 0% Source: TAM

40 Maharashtra Uttar Pradesh DELHI Tamil Nadu West Bengal Andhra Pradesh Gujarat Karnataka PHCHP Madhya Rajastan Kerala Orissa Chattisgarh Bihar Assam Marketwise Cable & Satellite Penetration C&S Penetration 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 85% 77% 94% 99% 89% 97% 79% 94% 89% 80% 76% 93% 78% 75% 81% 81% Source: TAM

41 Outlook 2011

42 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

43 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

44 Ad revenues in INR billion Ad revenue growth will be driven by TV Ad Rev Ad Rev. Growth% % Growth TV Press Outdoor Radio Internet Cinema Source: Pitch-Madison Media Advertising Outlook