FICCI-KPMG-Report-13-FRAMES

02
Introduction
The power of a billion: Realizing the Indian dream
In 2012, the television industry commenced its journey down a game
changing path, with the seeds planted for sweeping changes that would
significantly change the way business is done. Digitisation of cable is
expected to bring in transparency and increase subscription revenues for
Multi System Operators (MSOs) and broadcasters. It is also expected to
reduce carriage fees, building a case for the launch of niche channels and
investment in content for existing channels. Developments and refinements
in viewership measurement systems may affect the way advertising is
distributed among channels.
In itself, 2012 was a challenging year for the industry, with companies
conserving capital and cutting advertisement spends in the face of a soft
macro-economic environment. Against this backdrop, leading players and
networks stood out as they managed to hold out better than fringe and niche
players. The TV sector also witnessed consolidation and exits, paving the way
for a more sustainable, profitable future.
Despite the current challenges, the long-term outlook remains positive, and
India continues to remain a key strategic market for leading international
broadcasters.
Further, in a reflection of India’s growing diaspora, Indian channels have
also been aggressively increasing their presence across international
markets. GEC channels like Zee TV, SET, Star Plus and Colors are available
in approximately 169, 77, 70 and 50 countries respectively 1 . Industry
discussions suggest that while the US, UK and Canada markets are close
to saturation in terms of penetration, the Middle East and Africa continue
to offer significant growth opportunities. In addition to the Indian diaspora,
offerings are also targeted at the local population, primarily through dubbed
or sub-titled content. ZEEL launched its second Arabic channel, Zee Alwan, in
2012, and industry discussions suggest that the response has been positive.
ZEEL has been syndicating Indian dramas dubbed in Mandarin to Chinese
television channels since 2006 2 and became the first Indian channel 3 to
receive landing rights in China in 2012.
13
“
ZEE has reach in 169 countries, entertaining over 670 million
viewers across the globe. With a rich bouquet of 32 channels
and 29 dedicated international channels, ZEE as a brand has
achieved global recognition.
“
- Atul Das
Chief Strategy Officer,
Zee Enterprises Entertainment Limited
The television industry in India is estimated at INR 370 billion in 2012, and
is expected to grow at a CAGR of 18 percent over 2012-17, to reach INR 848
billion in 2017. Aided by digitisation and the consequent increase in ARPUs
(Average Revenue Per User), the share of subscription revenue to the total
industry revenue is expected to increase from 66 percent in 2012 to 72
percent in 2017 4 .
01. Boxofficeindia.com; 11 August 2012
02. The Hindu, 14 January 2008
03. The Hindu, 12 April 2012
04. KPMG in India analysis
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