FICCI-KPMG-Report-13-FRAMES

Recommendations

Info

38 The power of a billion: Realizing the Indian dream © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Riding the HD growth curve After a relatively slow start for the first 2-3 years, adoption of HD connections saw an upswing in 2012. HD subscribers account for approximately 3.5-4 64 percent of existing DTH subscribers. However, the percentage of new DTH subscribers opting for HD packages has doubled, from 7-8 percent last year to approximately 15 64 percent during 2012. Growing HD adoption is expected to boost DTH ARPUs. An analogy to appreciate the importance of the HD C&S subscriber base may be drawn from the Indian telecom industry, where postpaid subscribers account for 5 percent of the subscriber base, while contributing 30 percent 64 to revenue. Two factors have enabled an accelerated adoption of HD television in India. Flat panel sales including LCD, LED and Plasma television sets has seen significant traction, and is expected to increase at a CAGR of 27 64 percent over 2012- 16. Panel sales “ The HD market opened up in 2010, saw an increased traction in 2011 and has exploded in 2012. 15-20 percent of new DTH customers are opting for HD services. Increasing number of flat panel sales is a very important factor influencing the sale of HD services. Sensing a market opportunity, broadcasters have made large numbers of channels available in HD format. Approximately 36 channels across genres like GEC, Infotainment, Sports and Movies are available on the HD platform, and this number is expected to rise to close to 50 64 by next year. 64. Industry discussions conducted by KPMG in India “ Source: KPMG in India analysis, Industry discussions conducted by KPMG in India - Anil Khera CEO, Videocon D2H Note: Figures are rounded to the nearest integer and may not add up exactly to column totals Genre segmentation and specialty channels Emergence of specialty channels and sub-segments within hitherto niche genres is expected to be a key theme going forward once digitisation achieves maturity. Channels across varied genres like Kids, Music, Infotainment, Sports and Movies are expected to start offering differentiated content appealing to sub-segments within their target audiences. Impending digitisation has encouraged a few broadcasters to take a leap of faith in launching specialty, advertisement free and niche channels, particularly in the Kids genre. Many of these channels are available only on digital platforms in order to develop a subscription driven business model. Discussions indicate that by the time digitisation approaches completion, broadcasters want their offerings to achieve significant maturity amongst their target audiences so as to benefit from increase in subscription revenue and achieve premium advertisement rates. For instance, HBO Asia and Eros launched HBO Hits and HBO Defined – two new advertisement free premium priced movie channels. Despite the launch of a few specialty channels, overall industry movement towards the international model of subscription driven niche channels remains slow. Discussions indicate that broadcasters are yet to align themselves to a digital world with limited investment in content creation and reach generation. “ Post digitisation, we see more targeted offerings coming in. For instance, Gujarat, Maharashtra and UP can all be called HSM, but they are culturally very different. In today’s analogue world, they are all served one spectrum of content created in Mumbai. “ - Uday Shankar CEO, Star India “ With digitisation, broadcasters with launch more niche channels. I expect more channels aimed at men and youth segments, travel & leisure, health & wellness. The focus will not only be on 14- 34 year old women, but young males also. Scan the QR code to hear more from Man Jit - Man Jit Singh CEO, Multi Screen Media Private Limited “
The power of a billion: Realizing the Indian dream 39 Regulatory snapshot Industry wish-list Entity Wish-list Comment Broadcasters Timely digitisation with addressability • There have been implementation challenges and delays in complete digitisation of four metros. At the same time, while boxes have been seeded in homes, these are not necessarily addressable. • Several broadcasters have indicated that timely digitisation along with consumer addressability is the most important development needed by the television industry. “ “ Complete and timely digitisation is foremost on any broadcaster’s wishlist. - Asheesh Chatterjee Chief Financial Officer, Reliance Broadcast Network Limited Move to CPT, rather than CPRP based system • Currently, the industry uses the CPRP metric to arrive at advertisement rates. • A CPT metric based system better represents the new C&S households added every year. “ The industry should move from a CPRP to a CPT model. This will help niche genres a lot. It is also in-line with what the world is doing. “ - Rohit Gupta President, Multi Screen Media Private Limited Introduce pricing freedom • In the DAS regime, the government has regulated the retail pricing, and recommended a revenue share amongst various stakeholders in the value chain. • Strong broadcasters prefer pricing freedom in fixing consumer tariffs for different channels. Self regulation of advertisement inventory • While TRAI has mandated a maximum of 12 minutes of inventory per hour of programming, compliance measures against broadcasters remains low. • Strong broadcasters would like to see the industry move towards self-regulation in advertisement leading to enhanced consumer experience and higher advertisement rates for the broadcasters.
Page 1 and 2: This heading style is set in Univer
Page 3 and 4: The power of a billion Realizing th
Page 5 and 6: Radio too, is set for the - roll ou
Page 7 and 8: 42 Print Regional to the rescue 58
Page 9 and 10: 01 The power of a billion: Realizin
Page 11 and 12: The power of a billion: Realizing t
Page 15 and 16: 02 Introduction The power of a bill
Page 39: The power of a billion: Realizing t
Page 59 and 60: 57 Hiring and retaining talent The
Page 91 and 92:
05 The power of a billion: Realizin
Page 93 and 94:
The power of a billion: Realizing t
Page 95 and 96:
The smartphone is a very sophistica
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
“ With brand advertising gatherin
Page 111 and 112:
Music The success of the iTunes mod
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
06 Round up of the year that was Th
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
FICCI 2013 143 “ The Amendments t
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
© 2013 KPMG, an Indian Registered
Page 161 and 162:
09 Outlook for the year The power o
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
11 Technology The power of a billio
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
© 2013 KPMG, an Indian Registered
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Acknowledgement We acknowledge the
show all

FICCI-KPMG-Report-13-FRAMES

Create successful ePaper yourself

Delete template?

Save as template?