Idea Transcript
Indian Media Scenario
March’2011
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
Content
Indian Advertising Industry revenues
A closer look at Television Media
Mediumwise break up Trends over last 5 years 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
India – Its happening NOW!!!
India – Growth Indicator
Second fastest growing economy in the world despite the Global slowdown effects. GDP grew at around 7.4% during FY 09-10
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 2016-17
Source: India Brand Equity foundation & Industry Sources
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
World’s no 3 economy by 2050
GDP estimations 2050 in US$ (Trillion)
80
71
60 40
39
38
USA
India
20 0
China
Source: Goldman Sachs BRIC Report
Japan by 2028
India is now metamorphosed into a global brand image
India-Second Fasted Growing Economy
India – 3rd favorite market in global foreign direct investment Indian companies are turning MNCs through M&As Globally
• India is likely become the fifth largest consumer market in the world by 2025 • According to World Bank India’s GDP ranks 5th pertaining to Purchasing Power Parity (PPP); after USA, Japan & China
• On a cumulative basis, the FDI equity inflows received by India stood at US$ 20.92 billion during April-December 2009 • Sectors attracting highest FDI Equity Inflows-Services Sector, Telecommunications, Housing and Real Estate
• Tata Steel’s acquisition of Corus, UK for $ 12.1 BN • United Spirits’ acquisition of Whyte & Mackay, UKfor $1.2 BN • Bennett Coleman & Co Ltd(BCCL)acquired Britain’s Virgin Radio
Source: India Brand Equity foundation, CIA world Fact book, & McKinsey Global Institute
Young India with higher disposable income
India has largest young population in the world
66% of Indian’s Population is below the 35 yrs of Age
A sustainable young population means
• A longstanding productive working population • A huge domestic consumer market
Households with annual income of more than Rs. 10 million will almost triple
Source: India Today & Industry Sources
India is most attractive emerging Retail market for investment
The Indian retail market, the 5th largest retail destination globally
India’s overall retail sector is expected to rise to US$ 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
India – at a glance
India – a diverse country
More than 1 billion people
No. of States – 29
7 Union Territories
No. of Languages
Urban: Rural ratio 30:70
18 Official Languages
No of local dialects
More than 1500 dialects
Key Parameters
Parameters
INDIA ( All figs in Millions. Excl of %)
Population
1173.1MN
Population Under 15
Adult Literacy Exchange Rates No of Households Average no. per household
Source: TRAI, The Economist, CIA World Fact Book & TAM
30.5%
61% 46.07 (Rs per $) 231m 5.0
The Economic Construct Parameters GDP Origins of GDP
INDIA $1.43 trillion % of total
Agriculture
16.1%
Industry
28.6%
Services
55.3%
Structure of Employment
% of total
Agriculture
52%
Industry
14%
Services
34%
India’s GDP is expected to grow at 9.2% in the year 2010-11 compared to 7.4% in the year 2009-10
Source: Govt of India , The Economist & CIA World Fact Book
India -Key Media Indicators Parameters
TV Households Total Net Advertising Spend % of GDP
INDIA ( All figs in Millions. Excl of %)
141 US$ 5133 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
10.92
Source: TAM, TRAI & Pitch - Madison Advertising Outlook-2010
Population Break Up Population Split R1
R2
R3
R4
SEC : A
SEC : C
SEC : D
SEC : D 7%
R4 29% Urban 31% R3 28%
SEC : E
R1 R2 3% 9%
Source: IRS | Age: 12 years + | All India
SEC : C 7%
SEC : E 9%
SEC : B 5% SEC : A 3%
Socio Economic Classification SOCIO ECONOMIC CLASSIFICATION (URBAN) GRID
Occupation Unskilled Workers Skilled Workers Petty Traders Shop Owners B'Men / Indst. With employees : 0 1 to 9 10 + Self Employed Professionals Clerical / Salesmen Supervisory level Officers / Executives - Junior Officers/Executives - Middle/Senior
School upto 4 School yrs / literate but Illiterate 5-9 no formal years schooling E2 E2 E1 E2 E1 D E2 D D D D C D C B2 C B2 B2 B1 B1 A2 D D D D D D D D D C C C B1 B1 B1
SSC / HSC D C C B2 B1 B1 A2 B2 D D B2 B1
Some College but not Graduate D C C B1 A2 A2 A1 B1 B2 B2 B1 A2
Graduate / Post Graduate General D B2 B2 A2 A2 A1 A1 A2 B1 B1 A2 A1
Graduate / Post Graduate Professional D B2 B2 A2 A1 A1 A1 A1 B1 A2 A2 A1
Socio Economic classification based on the education & income of the chief wage earner of the house
Socio Economic Classification
Education Illiterate Literate but formal Edu Upto 4th Std 5th to 9th Std SSC/HSC College but not Grad Grad/PG (Gen) Grad/PG (Prof)
RURAL Classification GRID Type of Dwelling/House Pucca R4 R3 R3 R3 R2 R1 R1 R1
Semi Pucca R4 R4 R3 R3 R3 R2 R2 R2
Kuchha R4 R4 R4 R4 R3 R3 R3 R3
Rural classification based on the education & the type of the house
Indian Media
Reach of various Media (Urban + Rural) % Reach 70 60
57
50
44
40 30
20
20
18
10
5
3
Cinema
Internet
0 TV
Satellite TV
Print
Source: IRS 2010 Q3| All India | 12yrs + | All SEC | Urban+Rural
Radio
Reach of various Media - Urban % Reach 90 80
82 72
70 60 50
36
40
30
22
20 10
9
7
Cinema
Internet
0 TV
Satellite TV
Source: IRS 2010 Q3| All India | 12yrs + | All SEC| Urban
Print
Radio
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)
TV Audience Measurement systems Parameters No. of Metered Homes( Analog + Digital) Town Classes covered No. of Cities covered Geography Gender Age Group Socio Economic Classification Education Working Status Occupation/Profession Income Levels Ownership Type of Dwelling Pan Indian Sampling Viewership Update
aMap TAM 7200 8000 .1mn + Towns .1mn+ Towns & Mah LCI 87 162 Urban Urban R R R R R R R R R R Daily
R R R
R Weekly
Print - Readers in India are spoilt for choices
Total Registered Titles Total Dailies & Periodicals 62483
Hindi 24927
• •
English 9064
Vernacular 28492
Print has more than 10000+ unique titles in India 46% of the registered publications are in Vernacular language
Source: Registrar of Newspapers For India
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
Top Dailies and Magazines
Rank Top 10 Dailies 1 2 3 4 5 6 7 8 9 10
Dainik Jagran Dainik Bhaskar Hindustan Malayala Manorama Amar Ujala Daily Thanthi The Times of India Lokmat Mathrubhumi Rajasthan Patrika
Lang Hin Hin Hin Mal Hin Tam Eng Mar Mal Hin
Reach in MN 16.0 13.5 10.8 9.9 8.6 7.2 7.3 7.8 6.7 7.2
Source: IRS 2010 Q3| Reach in MN indicate Average issue readership(AIR)
Rank Top 10 Magazines 1 2 3 4 5 6 7 8 9 10
Vanitha (Mal) Saras Salil India Today Malayala Manorama India Today Kumudam Meri Saheli Grih shobha Cricket Samrat Grehlakshmi
Lang Freq Mal Hin Eng Mal Hin Tam Hin Hin Hin Hin
F F W W W W W W W W
Reach in MN 2.7 2.0 1.8 1.3 1.2 1.2 1.2 1.2 1.1 1.1
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
PRIMARY CHANNEL STATIONS
VIVIDH BHARATI STATIONS Private FM Stations
TYPE GROUP- 1 GROUP- 2 GROUP- 3 GROUP- 4 GROUP- 5 GROUP- A GROUP- B GROUP- C VB NETWORK 34 FM Stations
Markets 11 24 28 45 80 9 19 12 30 247
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
Internet in India Active Internet Users(in Milion) 60 52 50 42 40 30 Growth of Broadband in India
20 11 10 2 0 2000
2004
2008
2010
Subscribers in Millions 2006
2007
2008
2009
2010
Subscribers
3.13
5.45
7.57
10.92
34%
74%
39%
44%
% Growth
2.34
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
Summary of media performance on Key Metrics
Parameters Syndicated Research of medium Measuring Delivery for Communication Monitoring of Ads Critical Mass Interactivity of Medium Industry Body
Press P X P P X P
TV P P P P X P
Outdoor X X X P X X
Radio P X P P X P
Internet P X X P X P
Cinema P X X P X X
Present scenario Ad Rev in INR million
120000
2008
2009
2010
100000 80000 60000 40000
20000 0
TV Count of Titles / Channels / Stations
500+
Press
Radio
62000+
250+
Cinema
Outdoor
Internet
Advertising revenue is the major source of income for Media companies in India Source: Pitch-Madison Media Advertising Outlook2011
Trend of Advertising revenues in India TV
Press
Outdoor
Radio
Internet
Ad revenues in INR billion
Cinema
2010
45
42
6
4 3
2009
43
39
6
3 2
2008
40
47
7
32
2007
40
48
7
31
2006
41
48
7 21
2005
42
48
7 21
0%
20%
Source:: Pitch-Madison Media Advertising Outlook2011
40%
60%
80%
100%
236 187 207 177 145 119
A closer look at Television in India
More than 100 Million C&S TV households in India Digital Households 26 mn Analog Households
Non C&S Households
90 mn
25 mn Total TV Owing Households 141 mn
Total Households in India 231 mn
Source: TAM | Urban + Rural
Cable & Satellite households in India has grown by around 11% % Growth C&S
Digital
C&S
31%
20 Mn C&S Analog 83 Mn
TV Owning Households 134 Mn
Digital 26 Mn
12%
C&S Analog 90 Mn
6% TV Owning Households 141 Mn
3% Total Households 223 Mn
2010 Source: TAM | Urban + Rural
Total Households 231 Mn
2011
Digital Growth driven by rural market
Digital
Digital
9 Mn
17 Mn C&S Analog
C&S Analog 51 Mn
39 Mn
TV Owning Households 68 Mn
TV Owning Households 73 Mn
Total Households 78 Mn
Total Households 153 Mn
Urban Household 2011 Source: TAM
Rural Household 2011
C&S enabled homes on the rise in India % Rise as compared to 2003
42%
63%
Analogue Cable
109%
140%
170%
Digital Cable
140 120 100
20 15
80 2
60 40
20
26
43
61
68
75
2005
2006
2009
83
90
2010
2011
0
2003
No. of C&S HHs has grown by 170% in last 8 years Source: TAM & NRS | Urban + Rural
Viewership by language & Genre coming Broad Genre
Hindi
Entertainment Movie News Cable Kids Others Music Sports Terrestrial Infotainment Lifestyle
22 12 26
Total
72
8 1 1 2
Vernacu lar 52 6 43 1 1 30 18
# of Channel Multi English Feed 5 1 7 13
Others
6 5 8 4
1 1
5
2 3
1
79 26 84 5 9 295 29 10 27 7 4
37
261
575
2 4 1 251 2
5
25
176
Total
29
Source: TAM | Market: All India| TG: All C&S 4+
Broad Genre
Hindi
Entertainment Movie News Cable Kids Others Music Sports Terrestrial Infotainment Lifestyle
29 11 4
Total
46
0 0 1 1
Vernacu lar 24 2 3 6 0 2 2
% Share of Viewership Multi English Others Feed 0 0 1 0 0 0 6 0 0 0 0 1 2 0 1 1 0 0
0
53 14 7 6 6 4 4 3 2 1 0
3
1
100
1 1
40
10
Total
GRP contribution between Analog & Digital Large Network All TV Star India Network Zee Network SunTV Network Sony Network Viacom & TV 18 & IBN Network ETV Network Turner Turner Entertainment Disney UTV Asianet Communications Ltd. Maa Television Network Sahara One Entertainment NIMBUS Communications Limited TV9 Source: TAM| Market: All India| TG: CS 4+
GRPs
GRP Contribution ANALOG DIGITAL
3565.0
89%
11%
554.4 493.9 490.6 352.8 292.3 107.5 104.2 73.9 70.6 67.2 53.8 40.3 37.0 37.0 33.6
85% 69% 85% 77% 86% 92% 68% 61% 89% 70% 92% 45% 58% 64% 92%
15% 16% 14% 23% 14% 10% 7% 6% 11% 10% 8% 3% 9% 3% 8%
Marketwise Universe Contribution
25%
C&S Penetration 21%
20% 15% 8%
8%
8%
6%
6%
5%
5%
4%
2%
2%
1%
1%
0% Assam
8%
Bihar
8%
Orissa
10%
Chattisgarh
11%
Source: TAM
Kerala
Raj
MP
PHCHP
Karnataka
TN
AP
Guj
WB
DELHI
UP
Maharashtra
0%
Marketwise Cable & Satellite Penetration C&S Penetration
Assam
Bihar
Chattisgarh
Kerala
PHCHP
Orissa
78% 75% 81% 81%
80% 76%
Karnataka
Gujarat
Andhra Pradesh
West Bengal
Tamil Nadu
DELHI
93%
89%
79%
77%
Uttar Pradesh
94%
89%
85%
Source: TAM
97%
Rajastan
99%
Madhya…
94%
Maharashtra
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Outlook 2011
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
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
2011 - Ad revenue growth will be driven by TV
2010 Ad Rev.
120
40
126 105
35
35
113 100
100 80
Growth%
30 25
20
20
60
15
15
15
13
40
10 14 17
20
9 10
7
9
0 TV
Press
Source: Pitch-Madison Media Advertising Outlook
Outdoor
Radio
Internet
10 5
1
1
Cinema
0
% Growth
Ad revenues in INR billion
140
2011 Ad Rev.