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Tag: Media Industry

  • Media industry may cross $ 1k bn, A-Pac & US share 55%

    MUMBAI: The prime most change that has been evident is the shift towards more and more digital products in the media industry. It is expected that digital products and services will soon account for over 50 per cent of any company’s overall media expense.

    By the end of 2020, the global media industry is expected to cross US$ 1000 billion, with Asia Pacific and the US markets accounting for more than a half of the value of this number.

    Aruvian research report stated: Global media growth is primarily being fueled by the rapid development in BRIC countries and other emerging markets. While growth in Europe and many developed markets has been witnessing a slowdown, markets across Asia Pacific have been growing at a strong rate. Digital media continued to be a significant factor in the growth of the media industry, but the expansion of digital media has also met with many challenges along with way.

  • Sun Direct CEO R. Mahesh Kumar appointed as Sun TV Network President

    Sun Direct CEO R. Mahesh Kumar appointed as Sun TV Network President

    MUMBAI: The Kalanithi Maran-promoted Sun TV Network has appointed R. Mahesh Kumar, who has been Sun Direct CEO since 2011, as its president. The company made this announcement in a communication to the Bombay stock exchange a short while ago. 

     

    The appointment is being done to strengthen the management of the company, which runs India’s most watched channel, Sun TV and becomes effective from 1 November, 2015.

     

    Unconfirmed reports were that Sun Direct senior vice president – corporate affairs Swaminathan is slated to be elevated to head the DTH operation. 

     

    The 46 year old, R. Mahesh Kumar, is a Chartered Accountant with over 23 years experience out of which more than 15 years has been with the media industry. He started his career with Citibank and had also served KPMG and American Express in earlier years.

     

    His last position was was with the Rajan Raheja Group where he was the president and CEO of Asianet Satellite Communications Ltd before joining the Sun Group. He also held the position of managing director of Sun Direct.

  • Entertainment and media industry to double in five years

    Entertainment and media industry to double in five years

    MUMBAI: India’s entertainment and media industry is expected to double and grow to over Rs 2,27,000 crore by 2018 from Rs 1,12,044 crore in 2013, according to a report by industry body Confederation of Indian Industry (CII) and professional services firm PwC.

     

    “The industry growth is expected on account of healthy growth in areas like advertisement and television industry,” the report – India Entertainment & Media Outlook 2014 predicted.

     

    In 2013, the broad entertainment and media industry, anticipated to be Rs 1,12,044 crore rose 19 per cent over the preceding year. The film segment was estimated at Rs 12,600 crore in 2013 and is projected to grow steadily at a CAGR of 12 per cent, on the back of higher domestic and overseas box-office collections as well as cable and satellite rights.

     

    Internet access and internet advertising were the fastest growing segments in 2013, clocking growth rates of 47 per cent and 26 per cent respectively over the previous year. The report added that the companies in the sector will need a business strategy fit for the digital age. The industry needs to get even closer to the consumer and adopt more flexible business models.

     

    “The revenue from advertising is expected to grow at a CAGR of 13 per cent and will exceed Rs 60,000 crore in 2018 from Rs 35,000 crore in 2013. Internet access has overtaken the print segment as the second-largest segment contributing to the overall pie of entertainment and media sector revenues,” it said. 

     

    Television and print are expected to remain the largest contributors to the advertising pie in 2018 as well. Internet advertising will emerge as the third-largest segment, with a share of about 16 per cent in the total entertainment and media advertising pie, as per the estimates.

     

    PwC India Entertainment and Media practice leader Smita Jha said, “Digital success does not just necessarily mean better, improved technology. It means applying a digital mindset to build the right behaviours among industry stakeholders. This includes getting ever closer to the customer–across the entire organisation, and in everything it does.”

     

    With the rapidly increasing mobile usage, the gaming sector is also emerging as a promising source of revenue for the industry. Efforts by industry players as well as support from the government are expected to provide a major boost to the gaming sector, which is still in its infancy.

     

    Out-of-home advertising is gradually expected to slide to the last position in terms of revenue contribution to the sector, with its share declining to 1 per cent in 2018, while music remains constant at 1 per cent revenue share between 2013 and 2018.

  • ‘New government should lay foundation for improving relationship with media industry’

    ‘New government should lay foundation for improving relationship with media industry’

    MUMBAI: The relationship between the media and entertainment industry and the government has “broken”. The industry and the new government that would be formed after the general elections should lay a new foundation for improving the relationship.

     

    That was the clarion call by Star India CEO and FICCI Media and Entertainment Committee Chairman Uday Shankar in his opening remarks at the 15th FICCI-Frames in Mumbai.

     

    Unless all the stakeholders get together for the betterment of the industry, the vibrancy of the media and entertainment sector will be at stake and the biggest victim will be free expression, said Shankar.

     

    He asked, “Why not nourish an industry that has huge potential? Why not support an industry that needs policy support and nor resources support?”

     

    The media and entertainment industry needs recognition that it is a potential economic growth engine and a force multiplier, he stated.

     

    He said the media and entertainment industry grew by 12 per cent in 2013 despite economic headwinds and added “it is a testament to the tenacity of the industry.”

     

    There is now tension between the media and entertainment industry and the government with the successive governments limiting free speech, he said.

     

    Surprisingly, irrespective of the party, the media has been at the receiving end. “Whether you trumpet youth leaders or the state leaders, media is asked to be accountable,” Shankar said.

     

    He also pointed out that the media created a political party out of thin air and put it in power, but eventually the same outfit has started making accusations against the media the moment accountability was sought.

     

     

    The government has not been able to harness the potential of the media and before the elections kick starts there needs to be a new “contract” between the media industry and the government, Shankar said.

  • Rajan Srinivasan bids adieu to Web18

    Rajan Srinivasan bids adieu to Web18

    MUMBAI: Rajan Srinivasan has decided to move on from his role as CEO, IBNLive. During his stint with Web18, Srinivasan managed a variety of mandates including head of sales for moneycontrol, head of sales and marketing for Web18 and CEO, IBNLive.

     

    He has been part of the core team that has helped build some of country’s leading digital brands like moneycontrol.com and IBNLive.com.
    Rajan Srinivasan is proud of what Web18 achieved over the past many years with it

     

    Speaking on this development, Web 18 CEO Lakshmi Narasimhan said: “Rajan has been with our web business for over eight years and has been a pillar of strength for our business. He has taken on every challenge we have thrown at him and has come out tops. He has been an integral part of our team and has made a big difference to us in many ways. I would like to wish him the very best in all his future endeavours.”

     

    Rajan Srinivasan added: “I am proud of what we achieved over the past many years at Web18. I am more than grateful for the immense support I’ve received from the Network18 team, our customers and our partners. Clearly, this is a rather emotional and tough call but I am happy to know that the Web18 suite of products are well positioned as well as future ready and wish them every success.”

     

     Srinivasan has over eighteen years of experience in the media industry, including nine in the digital space. Prior to joining Network18 in 2003, he had stints with the Indian Express, Sony Entertainment Television and BBC World.

  • The curious case of CCI’s TAM Media investigation

    The curious case of CCI’s TAM Media investigation

    MUMBAI: The TV ratings tornado that had struck the industry a couple of months ago has died down and it appears as if even the same has happened with the TAM Media investigation being conducted by the Competition Commission of India (CCI). Of course the CCI will deny it, but, it does seem so.

     

    The deadline for the responses to the queries sent out to media industry stakeholders by the CCI was 18 July.

     

    “We had received the questionnaire by the enquiry committee of CCI on 18 July. The responses to which were sent to them on the same day. After that we have not received any update from CCI,” informs a highly placed official in Prasar Bharati.

     

    It may be recalled that the CCI had started the investigation post a complaint filed by Prasar Bharati against the audience measurement agency for anti-competitive practices in November last year. The complaint was filed under section 4 of the Competition Act 2002, which pertains to abuse of a dominant position by a market player.

     

    “We are still in the process of collecting data from the stakeholders. The matter is still being investigated,” informs a source from the CCI. The body has asked for an extension to collect the data. “There is a provision to extend the time frame and we are seeking extensions to ensure a proper investigation,” adds the source who refuses to comment any further on the investigation.

     

    It was in late June, this year that the CCI had started sending out notices to key players in the media and entertainment industry seeking information on TAM in order to ascertain whether there was any case to be made against it. The notice sent by CCI was just the first step to find out what reported “wrongs” was TAM Media doing.

     

    When Indiantelevision.com contacted TAM for its comment on the same, a TAM representative responded by say, “We have decided not to comment on the investigation.”

     

    With CCI not yet completing the first step of investigation, how long will the body take to come out with its final verdict? Or are more pressing matters taking up its attention? “You can’t forget, things such as these have a process and take time,” says a media observer. “Don’t be surprised if a damning report against TAM emerges closer to the time of the ratings launch under BARC next year.”

  • PwC sees strong merger and acquisition growth in US entertainment and media industry

    PwC sees strong merger and acquisition growth in US entertainment and media industry

    MUMBAI: Merger and acquisition activity in the US entertainment and media (E&M) market is on a strong growth trajectory, and this year is projected to reach levels not seen since 2001.

    A report 2006 M&A Insights — US Entertainment and Media Industry has been published by PricewaterhouseCoopers’ E&M Transaction Services Practice.

    The report notes that increasing levels of industry consolidation and deconsolidation activity are being driven by a number of trends and are being led by the convergence of media, communications and technology. There is also shifting consumer media consumption habits; and the increasing involvement and influence of private equity firms in deal making activity.

    Also fuelling this activity is a move by some global conglomerates to separate or divest non-core assets in an effort to increase shareholder value, according to the PwC report.

    At $72 billion, 2005 disclosed deal value increased 17.5 per cent during 2004 while disclosed deal volume increased two per cent to 252. The casinos, broadcasting and cable segments proved most active in terms of high profile transactions and highest deal value.

    PwC notes that based on activity seen so far, it appears that the industry is on a fast track to achieve greater deal volume and higher deal value in 2006 than in 2005.

    In addition to mega-deals with the potential to change the competitive landscape in entertainment and media, PwC expects middle-market deals of all sizes and across all sectors, to see increased activity in both value and volume. Adding to this growth are private equity firms, which are increasing their activity and investment level in entertainment and media and related industries. This is expected to evolve as conglomerates tighten their business focus, providing additional attractive investment opportunities.

    PwC’s analysis has revealed five factors as key to understanding the forces that are driving consolidation in E&M segments including casinos & gaming, broadcasting, cable, motion pictures/audio visual, Internet software and services, publishing, and advertising & marketing:
    — Convergence: Consumers continue to gain more control over when, where and how they consume content. In response to consumers’ needs and desires, media, communications, and technology industries will increasingly converge. As a result, PwC expects to see significant transactions, including deals ranging from strategic acquisitions of niche distribution technologies to large, non-traditional mergers that cross traditional industry boundaries.

    — Shifting content consumption: In traditional media sectors, consumers’ shifting content consumption activities will cause media audiences to fragment and advertising spending to grow more slowly. Conversely, in the online and interactive markets (Internet paid search and sponsorship, video games, etc.), advertising will increase more rapidly.

    Consequently, PwC expects to see increased acquisitions by advertisers and advertising-based publishers that are attempting to preserve their core revenue streams by acquiring the ability to reach consumers online with rich media, full-motion video, and e-commerce applications.

    — Rise of consumer-created content and communities of interest: This trend will offer consumers alternative media options and simultaneously provide advertisers with access to a “sticky” and potentially profitable environment of large audiences. As traditional content providers adapt to this changing landscape, they can seize opportunities to acquire companies that offer specialised content or technology serving the social network media space.

    — Continued impact of private equity firms: It is very likely that private equity firms will maintain and grow their significant presence, thus influencing the E&M industry. Increasingly, both the major global private equity firms and smaller, niche-oriented players are taking lead roles on the deals that are shaping and re-shaping the entertainment and media landscape. Private equity firms will continue seeking deals in solid, cash-flow-rich media companies and sectors that can generate strong shareholder returns.

    — Analysts and shareholders raising questions about global entertainment and media conglomerates: Both analysts and shareholders alike are increasingly questioning whether global conglomerates have become too large and complex to manage effectively, and companies are reacting. As a result, during the past two years, a significant trend in conglomerates looking to separate their organisations and/or divest non-core assets has occurred. (e.g. Clear Channel, IAC/Expedia and Liberty Media/Discovery in 2005; Viacom, Disney/ABC Radio Network and Stations, Cendant and Time
    Warner book publishing in 2006).

    This trend appears to be accelerating. So more E&M conglomerates deconsolidating and shedding additional non-core assets should occur in 2006. This trend presents opportunities for existing players to strengthen their holdings through strategic acquisitions, and for private equity players to craft investment platforms in a wider array of entertainment and media sectors.