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  • Digital fuels growth in Africa’s entertainment & media industry: PwC

    Digital fuels growth in Africa’s entertainment & media industry: PwC

    MUMBAI: After more than a decade of digital disruption, the African entertainment and media industry has entered a new landscape – one where the media is no longer divided into distinct traditional and digital spheres, according to a report from PwC titled Entertainment and media outlook: 2015 – 2019 (South Africa – Nigeria-Kenya). 

     

    The Outlook forecasts that South Africa’s entertainment and media industry is expected to grow from R112.7 billion in 2014 to R176.3 billion in 2019, at a compound annual growth rate (CAGR) of 9.4 per cent. Digital spend is expected to fuel the overall growth. South Africa’s Internet access market will rise rapidly from R32.5 billion in 2014 to R76.2 billion in 2019, far ahead of any other consumer spend category, making it the largest contributor to South Africa’s total entertainment and media revenues.

     

    PwC Southern Africa entertainment and media leader Vicki Myburgh said, “This year’s Outlook shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile. Increasingly, though, it’s clear that consumers see no significant divide between digital and traditional media – what they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content.”

     

    “Consumers are choosing offerings that combine an outstanding and personalised user experience with an intuitive interface and easy access. This includes shared physical experiences like cinema and live concerts, which appear re-energised by digital and social media,” Myburgh added.

     

    The Outlook presents annual historical data for 2010–2014 and provides annual forecasts for 2015–2019 in 11 entertainment and media segments for South Africa, Nigeria and Kenya: the Internet, television, filmed entertainment, video games, business-to-business publishing, recorded music, newspaper publishing, magazine publishing, book publishing, out-of-home advertising and radio.

     

    Aside from the Internet, the Outlook predicts that the fastest growth will be seen in video games, business-to-business and filmed entertainment. “But it is Internet access itself that is acting as a driver of revenues in video games and film, creating new revenue streams by making over-the-top (OTT)/streaming or social/casual gaming viable to more consumers and thereby cancelling out physical falls,” added Myburgh.

     

    Music, magazines and newspapers, which will show only moderate consumer growth, are three segments that face strong competition from the Internet. The music market was worth R2.01 billion in 2014, compared to R2.08 billion in 2013. Annual revenue is forecast to grow marginally by a CAGR of 1.3 per cent over the next five years to remain relatively flat at R2.1 billion in 2019.

     

    Television remains a highly significant contributor to consumer spending, with combined revenues from TV subscriptions, advertising and licence fees projected to reach R40.9 billion by 2019. The report also shows that one consistent trend – and not just in South Africa, but globally – is the rise in overall consumer spending through to 2019 on video-based content and services, against far flatter prospects for spending on primarily text-based content and services. If consumer revenue from TV subscriptions and licence fees is aggregated with that from video games, around R4.5 billion will be added between 2014 and 2019.

     

    In contrast, consumer revenue from books, magazines and newspapers is expected to rise by just R1.3 billion over the entire forecast period.

    Alongside video providers, a further thriving source of revenue over the coming five years will be live events. Revenue from live music is expected to grow at a CAGR of 7.9 per cent in the next five years, reaching R1.5 billion in 2019, up from R1 billion in 2014. Box office revenues are also steadily increasing at a CAGR of three per cent to reach R972 million by the end of the forecast period.

     

    The appeal of live entertainment has also had a positive effect on the related advertising revenues. South African cinema advertising revenue is also rising at a CAGR of 6.7 per cent and will be worth an estimated R884 million in 2019. “It is clear that consumers value – and are willing to pay a premium for – real-life physical entertainment experiences, and these in turn are the types of consumers that advertisers wish to target,” said Myburgh.

     

    The report shows that South Africa’s total entertainment and media advertising revenue is expected to rise by 5.6 per cent from R39.7 billion in 2014 to R52.1 billion in 2019. TV advertising is by far the largest contributor to total advertising revenues, followed by newspaper advertising: however, their combined 52 per cent share of total advertising in 2014 will fall slightly to 51 per cent in 2019.

     

    Despite the strong projections for advertising, its share of the entertainment and media mix is predicted to decrease by 2019 as consumer spending takes an ever larger part of the pie; from 35 per cent in 2014, advertising will account for just 30 per cent of spending in 2019.

     

    “Affordable Internet access will continue to digitally disrupt the market in novel and innovative ways. The ongoing spread of services to mobile networks, novel devices and emerging markets will change how media and entertainment are served, consumed and monetised in multiple ways. Affordable Internet access will also inhibit the revenue growth of various sectors as consumers use it to access free, ad-funded and lower-priced subscription-based versions of new and existing media services,” said Myburgh.

     

    Nigeria

     

    Nigeria’s entertainment and media market grew by 19.3 per cent in 2014 to reach $4 billion. By 2019, the market will be more than twice as big, with an estimated total revenue of $8.1 billion. As in South Africa, the Internet will be the key driver of growth for Nigeria. Television, comprising revenue from TV advertising and subscriptions, is the other main driver.

     

    Excluding Internet access, television, filmed entertainment and video games are the areas where Nigerian consumers are expected to spend the most over the next five years.

     

    Consumer spend on video games and music is set to see the sharpest rise in forecast CAGRs at 14.3 per cent and 11.4 per cent, respectively. Piracy continues to remain a problem in Nigeria, limiting growth across several entertainment and media sectors.

     

    Kenya

     

    Kenya’s total entertainment and media industry was valued at $1.8 billion in 2014, up 13.3 per cent from 2013, when it stood at $1.6 billion. The market is expected to surpass the $3 billion mark in 2019 to reach $3.3 billion.

     

    Again, the Internet is expected to be the largest driver of growth, followed by television and radio. TV advertising will overtake radio in 2016, and Internet advertising will see the fastest growth rate at a CAGR of 16.8 per cent. Traditional mediums such as TV, radio and newspapers will continue to be the first choice for most Kenyan advertisers in the foreseeable future.

    Kenya’s total entertainment and media industry was valued at $1.8 billion in 2014, up 13.3 per cent from 2013, when it stood at $1.6 billion. The market is expected to surpass the $3 billion mark in 2019 to reach $3.3 billion.

     

    “Today’s media companies need to do three things to succeed: innovate around the product and user experience; develop seamless consumer relationships across distribution channels; and put mobile (and increasingly video) at the centre of the consumer’s experience,” concluded Myburgh.

  • ICC Cricket WC 2015 gives economic boost to Australia, NZ: PwC

    ICC Cricket WC 2015 gives economic boost to Australia, NZ: PwC

    MUMBAI: The ICC Cricket World Cup 2015, hosted by Australia and New Zealand during February and March this year, was one the biggest events in the history of both countries and provided a significant positive boost to the local economies.

     

    The findings of an economic impact and benefits analysis carried out by PricewaterhouseCoopers show that the tournament generated more than $AU 1.1 billion in direct spending, created the equivalent of 8,320 full time jobs, and had a total of 2 million bed nights across the two countries.

     

    Attendance at tournament matches was 1,016,420, with 295,000 international and interstate/inter-regional visitors to Host Cities.

     

    Of these, there were 145,000 international visitors to Australia and New Zealand for the tournament providing a huge boost to tourism, with the largest number of overseas visitors coming from Asia.

     

    The tournament was watched by more than 1.5 billion people worldwide.

    ICC chief executive David Richardson said the outstanding success and popularity of the tournament proved that cricket was not only popular across both countries but a significant contributor to the local economies. 

     

    “The ICC Cricket World Cup 2015 was the most popular ever played,” said Richardson.

     

    “The venues were world class, the host cities were world class and the two countries delivered a world class tournament which was watched by more people around the world than ever before,” he added.

     

    Australian Sports Minister Sussan Ley said the Australian and New Zealand governments had worked closely with the World Cup organisers to ensure the greatest spectacle for sports fans while also maximising the trade and tourism opportunities created by the tournament.

     

    “While fierce rivals on the field Australia and New Zealand have a proud tradition of working together to deliver world-class sporting events,” Ley said.

     

    “The Cricket World Cup has been an outstanding success across all measures which is highlighted by the contribution it has made to the economies of both countries through trade and tourism as well as the unique benefits of sport diplomacy with key partners and markets around the world,” Ley added.

     

    Cricket World Cup 2015 chief executive officer John Harnden, said the $1.1 billion in direct spending converted into an increase in gross domestic product of $AU460 million across the two countries.

     

    “This was the biggest event in Australia since the Sydney Olympics in 2000 and it has changed cricket in New Zealand forever,” Harnden said.

     

    “The Cricket World Cup generated two million bed nights across the two countries and around $855 million was spent by visitors while here for the tournament which is great for the tourism industries of both countries.

     

    “The Australian and New Zealand Governments were great supporters of the event. The introduction of a single visa for the Cricket World Cup was a significant initiative which made it easier for international guests to visit New Zealand and Australia. Most importantly, both countries provided a safe, warm and welcoming experience for all fans from around the world and provided them with an experience they would not forget.

     

    “When you consider the TV audience of over 1.5 billion, saturation of coverage across all digital platforms and the mainstream media coverage of the event across the 14 host cities, the Cricket World Cup has not only showcased the best of Australia and New Zealand but has enhanced the tournament’s reputation as a major global driver for economic and community benefit,” concluded Harnden.

  • 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.

  • E-commerce gives thumbs up to Budget 2014

    E-commerce gives thumbs up to Budget 2014

    MUMBAI: The e-commerce sector is a happy lot. Finance Minister Arun Jaitley in his maiden budget announced that manufacturing units will be allowed to sell their products through retail including e-commerce platforms without any additional approval.

     

    This paves path for the foreign direct investment (FDI) in the manufacturing sector.

     

    Foreign consumer brands with manufacturing units in the country have been piggybacking on the online retailers’ potential growth which is currently estimated to be at $3.2 billion.

     

    PwC India technology leader Sandeep Ladda says, “Liberalisation of FDI in e-commerce sector will provide much-needed certainty to foreign players and to a sector that has the promise to provide increased commerce and generate employment in the country. This will also provide boost to the sector and create healthy competition so as to benefit all the constituents in the ecosystem – consumers, government, e-commerce players, and retailers in general.”

     

    While the Department of Industrial Policy & Promotion (DIPP) is keen on opening e-commerce to FDI, as was made abundantly clear in the meeting with industry stakeholders, they were also clear that they needed to understand how FDI would help boost manufacturing.

     

    American Swan CEO and director Anurag Rajpal says, “A more robust online retail sector will spur manufacturing and help an economic revival. India currently does not allow global online retailers from selling goods directly to customers but allows them to own 100 per cent of a marketplace business, where third-party suppliers can use their platform. Both Amazon and eBay use such a platform to operate in the country.”

     

    Amazon India, which recently launched its first TVC in the country during IPL 7 and promises delivery on the same day, feels that FM’s announcement is a positive statement of intent for the e-commerce industry. “It recognises the role of e-commerce companies in the growth of manufacturing sector. Following this statement, we are hopeful of a more positive and liberalised policy on e-commerce in the near future aimed to help grow the manufacturing industry,” says a spokesperson from the e-retailer.

     

    One of the biggest players of this space in the country, Flipkart co-founder and CEO Sachin Bansal thinks this is a forward looking budget and hopes to see results over time. “The focus on giving a fillip to infrastructure and skill development is very encouraging. The fact that we could see a GST roll out by the end of the year is very positive and will augur well for all sectors. The attention to facilitating entrepreneurship and the allocation towards the National Rural Internet and Technology Mission is an extremely positive move, as collectively they provide the opportunity for both individuals as well as businesses to go digital,” he opines.

     

    Brands feel that the move will give a push to the manufacturing sector, and will also encourage foreign companies to set up manufacturing facilities in India.

     

    Currently, India allows wholly-owned overseas subsidiaries in single-brand retailers that sell products under a single label through physical stores such as Zara, Panasonic or Marks & Spencer. However, the catch is that they have to get clearance from Foreign Investment Promotion Board (FIPB) and produce 30 per cent of their products within the country.

     

    Moreover, other announcements in the budget too signal a positive way for the online sector. More internet penetration and connection in the rural areas, increase in logistics because of increase in railway freight and decrease in excise duties on shoes, apparel etc bring in good news for the portals.

     

    Jabong’s co-founder & MD Praveen Sinha feels that though it is still unclear that how increase in service tax on online advertising will impact the sector, one will have to wait and watch how these announcements will be implemented. 

  • Internet advertising to surpass TV by 2018: PwC report

    Internet advertising to surpass TV by 2018: PwC report

    MUMBAI: With laptops, smartphones and tablets becoming a part and parcel of people’s lives today; internet is bound to become an integral part of advertising and marketing.

     

    And if PwC’s Global entertainment and media outlook 2014-2018 (Outlook) is correct then the total entertainment and media spending on digital services is forecast to grow at a 12.2 per cent compound annual growth rate (CAGR) between 2013 and 2018 and accounts for 65 per cent of global entertainment and media spending growth, excluding spending on internet access.

     

    Advertising is leading the way; in 2018, 33 per cent of total advertising revenue is forecast to be digital, compared to 17 per cent of consumer revenue.

     

    However, profiting from the migration by increasing revenue from digital consumers will not just be about the application of digital technology. It will be about applying a ‘digital mindset’ to build the right behaviours, advancing from a digital strategy to a business strategy fit for a digital age, according to the report.

     

    PwC’s entertainment & media global leader Marcel Fenez said, “The bedrock of a strategy fit for the digital age is the digital mindset: getting even closer to the customer – across the entire organisation, and in everything it does. We now see that mindset embedded in many entertainment and media companies. But the industry needs to get even closer to the consumer and adopt more flexible business models. To do this, companies must exhibit three behaviours: forging trust with consumers; creating the confidence to move with speed and agility; and empowering innovation. This will be an important step in monetising the digital consumer.”

     

    Approaching a significant advertising tipping point

     

    Mobile internet penetration will reach 55 per cent in 2018, which will help drive digital advertising to increase its share of total advertising revenue to 33 per cent by 2018, up from 14 per cent in 2009. With internet advertising growing at a 10.7 per cent CAGR (compared to a total advertising CAGR of 4.4 per cent), the industry is approaching a significant tipping point: in 2018, internet advertising will be poised to surpass TV advertising. In 2009, TV advertising was double than that of internet advertising; in 2018, internet advertising will trail TV advertising by just $20billion. Mobile internet advertising is forecast to grow at a CAGR of 21.5 per cent.

     

    Monetising the digital consumer: challenge and opportunity

     

    Spending on digitally delivered content will account for only 17 per cent of total consumer spending in 2018 (excluding spending on internet access), compared to 33 per cent of total advertising spending. However, the growth of ‘24/7 access’ and micro-transactions suggest that the key to monetising the digital consumer is to adopt flexible business models that offer more choices and better experiences. Electronic home video over-the-top (OTT)/streaming and digital music streaming are two of the fastest-growing consumer sub-segments cited in the Outlook, set to rise at annual rates of 28.1 per cent and 13.4 per cent, respectively.

     

    Nine markets driving growth

     

    Nine high-growth markets are powering global entertainment and media revenue. China, Brazil, Russia, India, Mexico, South Africa, Turkey, Argentina and Indonesia collectively are forecast to account for 21.7 per cent of global entertainment and media revenue in 2018, up from just 12.4 per cent in 2009. Also in 2018, China will overtake Japan as the world’s second-largest entertainment and media market, behind only the US. 

     

    Fenez added, “What all these markets have in common is a growing middle class boosting spending in entertainment and media. But the similarities stop there. Realising the revenue potential of these markets demands a deep understanding of the local context.Given their intimate local market knowledge, domestic organisations are in prime position to realise the opportunity of the emerging middle class. The optimal approach for international players will most certainly be to collaborate with local partners.”

     

    Advertising is spearheading the migration to digital as it follows eyeballs online:

     

    • Internet TV advertising will double its share of total TV advertising revenue in the next five years. Internet TV advertising revenue from traditional broadcasters will increase from $3.7bn in 2013 to $9.7bn in 2018, and more than double its share of total TV advertising from 2.2 per cent in 2013 to 4.5 per cent in 2018. Traditional broadcasters still dominate and are adapting to the internet video opportunity, creating a significant new revenue stream despite competition from internet rivals.

    • Mobile advertising will overtake classified internet advertising in 2014. Global mobile internet advertising revenue is forecast to leapfrog classified internet advertising to become the third-largest internet advertising channel with revenues of $18.9bn in 2014. But after four particularly strong years, driven by the launch of a range of tablets, the annual rate of mobile revenue growth is falling back to the levels seen prior to their introduction. Advertisers now must do more than simply migrate large-screen banners to handhelds to sustain such growth.

    • Digital consumer magazine advertising revenue is much larger than digital circulation. Global digital consumer magazine advertising revenue will be $12.4bn in 2018, rising at a 17.6 per cent CAGR; digital circulation revenue will be just $5.7bn in the same year. This compares to a decline of 3.9 per cent CAGR for consumer magazine print advertising revenue. Currently advertising is centered on magazine websites, but, as digital circulations increase, electronic editions will become increasingly popular for advertisers.

    • Digital out-of-home (DOOH) advertising revenue will see significant growth in fast-growth markets. DOOH advertising is driving overall OOH advertising growth globally at a CAGR of 16.2 per cent. However, in certain fast-growing markets, DOOH advertising revenue is forecast to grow even more rapidly, with CAGRs in excess of 30 per cent. China is set to become the largest DOOH advertising market in the world by 2017.

    Success in making money from the digital consumer can be found in offering choice and better experiences

    • Subscription TV will not be daunted by the rise of OTT as it grows across global markets. Global subscription TV revenues (excluding licence fees) will grow at a CAGR of 3.5 per cent over the next five years to $236bn in 2018. This growth demonstrates that subscription TV is in a healthy position, assisted by the initiatives it has implemented to counter the impact of OTT and other disruptive influences.

    •    Box office resilience underscores the continuing popularity of cinema. Global box office revenue will exceed revenue from physical home video in 2014 and grow to $45.9bn by 2018, from $36.1bn in 2013, a 4.9 per cent CAGR. In many growth markets, cinemas are being built to cater to the growing middle class.

    • Digital newspaper payments are taking off, but won’t prove transformational. Digital newspaper circulation revenue grew by 66.2 per cent through 2013. But although individual publishers report improved fortunes, few are hailing a transformation. Digital circulation will make up just 8 per cent of total circulation revenue globally by 2018.

    • Rising digital consumer revenue may be driven by 24/7 access. Two of the best-performing consumer sub-segments use a model in which consumers pay for round-the-clock access: digital music streaming revenue will grow at a 13.4 per cent CAGR, and electronic home video OTT/streaming will rise at a 28.1 per cent.These growth rates will not only offset a slow-moving non-digital consumer market, but may also point the way forward for other segments.

    • Global electronic home video revenue will exceed physical home video revenue in 2018. Globally, the total combined revenue from OTT/streaming services and broadcasters’ video on demand services will grow at a CAGR of 19.9 per cent. This will overtake physical home video revenue (the sale and rental of DVDs and Blu-ray discs) in 2018.

    • Digital recorded music revenue will surpass physical recorded revenue in 2014. Global total digital recorded music revenue of $10.18bn will exceed physical recorded music revenues of $10.17bn for the first time in 2014.  Greater service appeal for consumers will improve sales and by 2018, the year-on-year decline in total recorded music revenue will be just -0.1per cent.

    • All-you-can-read subscription services are yet to take off but will be transformational. While they are still to gain traction, users of subscription services and aggregators will soon reach critical mass. With growing magazine circulations will come rising circulation and advertising revenue.

    • Internet gaming is widening gaming participation and micro-transactions are helping to grow revenues. Internet gaming (including social gaming) has opened markets previously considered lost to piracy, with the business model enabling greater freedom and choice in how much gamers pay. China is the second-largest market for internet gaming ($4.2bn in 2013).In 2017, Russia will overtake Germany to become the seventh-largest market for internet gaming. Micro-transactions will help grow total video games revenues to $89.0bn (6.2 per cent CAGR) in 2018 and total console games revenues to $31.9bn (4.9 per cent CAGR) in 2018.

  • PwC report: content value, retransmission fees to boost E&M deals

    PwC report: content value, retransmission fees to boost E&M deals

    MUMBAI: If the new report released by PricewaterhouseCoopers (PwC) comes true, the media and entertainment sector could witness increasingly lucrative retransmission fees and high value for content having key influences on deal activity in the sector.

     

    The value of deals in the US entertainment, media and communications sector in 2013 more than doubled, driven by several “megadeals,” according to PwC’s year-end update.

     

    The deal volume year-to-year was relatively stable, the company reveals in its US Entertainment, Media & Communications Deal Insights report, rising by just three per cent to 866, while deal value soared from $96.2 billion to $222.7 billion.

     

    In broadcasting, deal volume rose from 71 to 87, with deal value soaring from $5.8 billion to $26.3 billion, driven by Comcast’s acquisition of GE’s interest in NBCUniversal. Going forward, deal activity in broadcasting is likely to be influenced by the increasing importance of retransmission revenues, as companies look to broaden their geographic reach.

     

    “PwC is beginning to see increased activity from US government regulators around anti-trust, intra-market media ownership and foreign media ownership regulations, which will likely be another market factor influencing deal volume,” the report says in its broadcasting 2014 outlook.

     

    Cable deal volume was stable at 16, but the value of deals fell year-to-year from $9 billion to $5 billion.

     

    Last year also saw 46 deals in film/content, up from 40, with a value of $0.5 billion, down from $9 billion in 2012. The previous year included Disney’s purchase of Lucasfilm.

     

    On the 2014 outlook for deals in film and content, PwC says, “The rising value of content has started an industry-wide race to acquire it. Buyers continue to look for ways to bridge the value gap and meet the premiums demanded by content providers through attractive deal structures, beneficial tax structuring and contingent consideration. Recent years have seen several major acquisitions of content assets, and despite the drop in deal value in 2013, the ongoing deal activity is likely to continue. Geographic location will hold no bar as U.S. participants look abroad and foreign players look to the United States for a means to acquire and monetize content.”

  • Casbaa adds Todd Miller and William Wade to board of directors

    Casbaa adds Todd Miller and William Wade to board of directors

    MUMBAI: Casbaa, the Asia Pacific multichannel TV association, has announced the election of Celestial Tiger Entertainment CEO Todd Miller and AsiaSat president and CEO William Wade to the board of directors.

    Re-elected as chairman of Casbaa was Marcel Fenez, global leader, entertainment & media practice, PricewaterhouseCoopers (PwC) and re-elected for additional terms on the board were PCCW TV and New Media MD Janice Lee and GroupM APAC CEO Mark Patterson.

    “We are delighted to welcome William Wade and to have Todd Miller return to the Casbaa board of directors. With their vast experience and wide-ranging knowledge of the multichannel TV landscape in the region, Miller and Wade will prove to be invaluable in helping chart the future of the association,” said Casbaa chairman Marcel Fenez. “We are also pleased to have the continued support of Lee and Patterson whose contributions to the governance of the association has been an integral part of our success.”

    Celestial Tiger Entertainment CEO Todd Miller is responsible for driving the company’s core businesses of branded pay-TV channels, content creation and content distribution across Asia and beyond. Prior to joining Celestial Tiger Entertainment, Miller spent 17 years at Sony Pictures Television, where he last served as executive VP, Networks, Asia-Pacific, overseeing and managing over 25 television networks and channel investments in the region. Miller has previously served two terms on the board of directors of Casbaa.

    William Wade was appointed as CEO on 1 August 2010 to lead AsiaSat, with his title changed to president and CEO from 1 January 2011.  Prior to assuming his role as CEO, he had served as AsiaSat’s deputy CEO for 16 years. Wade has over 26 years of experience in the satellite and cable television industry. Prior to joining AsiaSat in April 1994, he was with Hutchison Whampoa, as director of business development for Pan Asian Systems, and was in charge of all sales and regional operations.

    Miller and Wade will be replacing retiring members Disney-ABC International Television (Asia Pacific) SVP & MD Robert Gilby and Turner Broadcasting System Asia Pacific president and MD Steve Marcopoto.

    Added Fenez: “On behalf of the board of directors, council of governors and the executive office, Casbaa would also like to recognise the incredible efforts and hard work of both Robert Gilby and Steve Marcopoto. Their guidance and dedication to the evolution of the association will be greatly missed.”

  • 1Q US Internet ad revenues set new high at $9.6 billion

    1Q US Internet ad revenues set new high at $9.6 billion

    MUMBAI: At $9.6 billion, the first quarter 2013 digital ad revenues in the US hit landmark numbers, according to a survey conducted by the Interactive Advertising Bureau (IAB) and PwC US as part of the ongoing IAB Internet Advertising Revenue Report. The figure is a 15.6 per cent increase over the $8.3 billion figure reported in the first quarter of last year.

    IAB president and CEO Randall Rothenberg said, “Consumers are turning to interactive media in droves to look for the latest information, to connect with their social networks, and simply to be entertained. This first quarter milestone clearly illustrates that marketers recognise that digital has become the go-to medium for all sorts of activities on all sorts of screens, at home, at the office and on-the-run.”
     
    IAB senior VP, research, analytics and measurement Sherrill Mane said, “Internet advertising revenue continues to exhibit double-digit growth, even as the business matures. This is an accomplishment that can be attributed to growing recognition by marketers that digital advertising is a critical part of all marketing in today‘s world.”
     
    PwC US partner David Silverman said, “These record-setting Q1 numbers are consistent with the continuing shift to digital and reflect the type of growth that the internet advertising arena has been seeing year-over-year”.

  • Demand for TV transponders to triple in five years: PwC

    Demand for TV transponders to triple in five years: PwC

    NEW DELHI: The number of satellite transponders required by Indian TV broadcasters and DTH operators is expected to double or triple over the next five years.

    A new report from the Cable and Satellite Broadcasters Association of Asia (Casbaa) entitled “Easing India’s Capacity Crunch” forecasts that transponders required by the DTH industry will rise from 73 in 2012 to more than 220 in 2017 to meet burgeoning demands by Indian consumers.

    The report prepared by PwC was released at the Casbaa India Forum 2013.

    This rapid growth in transponder demand will be driven by the expected increase of TV channels in India, fuelled by strong growth of the Indian television industry over the next few years (expected CAGR of 14%).

    The continued proliferation of pay-TV services, coupled with cable digitisation, growth of regional channels and entry of foreign players will provide a fillip to growth. Given these driving factors, India can potentially have about 1,600 licensed channels by 2017, of which about 1,300 channels (80% of licensed channels), are expected to be operational.

    High growth in the number of HD channels is expected, due to growth in digital platforms coupled with increasing penetration of high-end TV sets that support HD viewing experiences. By 2017, India is likely to have approx 130 HD channels. This growth in the number of channels will lead to higher demand for C-band and Ku-band transponders.

    In the report, Casbaa and PwC make a series of suggestions for improving the management of India’s satellite industry, to make it more efficient and market-friendly.

    The report notes that Indian Space Research Organisation (Isro) is working hard to launch new satellites and procure additional spectrum to meet the burgeoning demand. Nevertheless, says the report, “it is unlikely that any single satellite operator will be able to fulfil even current demand, let alone the future demand for satellite capacity.” Foreign satellite operators will need to be encouraged to invest in capacity to serve the Indian market.

    “In spite of the urgent requirements for satellite capacity, there are challenges placing practical restrictions on leasing transponder capacity from foreign satellite operators by Indian players,” said John Medeiros, Casbaa’s Chief Policy Officer. “Key hurdles include procedural requirements and delays and short contract durations inducing uncertainty for both Indian players and outside investors.”

    Smita Jha, leader of PwC India’s Entertainment and Media practice, said: “Satellite capacity constraints impede the growth momentum of the Indian TV sector and impact the ecosystem of the industry. The capacity crunch could restrict the launch of local regional channels and special interest channels and could lead to a distortion of competitive balances in multiple ways.”

    The report encourages the Indian government to formulate policies and processes to spur growth in satellite services, and to explore opening up additional frequency bands for use by TV industry players. It suggests measures such as allowing DTH operators more freedom to easily lease more space on authorised satellites they already use, lengthening the allowable term of satellite transponder contracts, improving publicly-available market information from the government and ensuring adequate spectrum is available for satellite use in India.

  • Q3 internet ad spends in US up 18%

    MUMBAI: In the third quarter of 2012, US internet advertising revenues reached $9.26 billion, according to the latest figures released by the Interactive Advertising Bureau (IAB) and PwC US. These figures show an 18 per cent climb year-over-year, in comparison to Q3 2011‘s $7.8 billion and a six per cent increase over Q2 2012 figures of $8.72 billion.

    The report it sponsored by IAB and is conducted independently by the New Media Group of PwC. The data for the research was compiled directly from information supplied by companies selling advertisements on the internet. The survey includes data concerning online advertising revenues from web sites, commercial online services, free email providers, and all other companies selling online advertising.

    IAB president and CEO Randall Rothenberg said, “These historic investments in interactive point to the strong results that marketers are receiving from digital marketing. It is a highly effective medium for interacting and engaging consumers, who are no longer passive, but are active participants in contemporary media online, through social media, and on-the-go with mobile.”

    IAB senior vice president, research, analytics and measurement Sherrill Mane said, “Sustained growth in internet ad revenue despite economic head winds is a testament to the value marketers get from using digital media.”

    PricewaterhouseCoopers LLP partner David Silverman said, “This uptick goes beyond a significant year-over-year increase at 18 percent, and also shows a climb from last quarter as well. Clearly, digital advertising is continuing its positive trajectory with incredible momentum as it heads into seasonally strong Q4.”