The NewsreelA newsletter for the media and entertainment sector

Advertising sector in India

March 2014

Welcome to the March 2014 edition of The Newsreel, EY’s newsletter on the media and entertainment (M&E) industry.

India’s M&E industry has seen increased activity in the news channel space with the general elections being under way. TV18 has launched three new regional news channels and plans to launch three more in the near future. The ABP Group is increasing its number of news channels and adding a Punjabi and a Gujarati news channel.

The TV distribution sector is also gearing up for Phase III and IV of implementation of the digital addressable system (DAS). Dish TV is targeting regional markets during Phases III and IV of digitization with

a new brand, Zing;Hinduja Ventures has announced that it will invest US$100 million in its HITS venture to expand its operations to new geographies.

In addition, the sector has witnessed increased activity in the sports segment. IMG-Reliance floated tenders for Indian Super League football, and several IPL and I-League teams have shown their interest in the new league. Mashal Sports has launched the Pro-Kabaddi League.

This month, we explore India’s advertising industry, the current trends in it and factors fueling its growth. We present the views of Shashi Sinha, CEO, India, IPG Mediabrands on the industry.

I hope you enjoy reading this edition of The Newsreel. We look forward to your valuable feedback and suggestions.

With kind regards,

Farokh T. Balsara Partner and Sector Leader — Media & Entertainment

Foreword

In this editionIndustry news:

In-focus:

04

08

11

Latest news in the media and entertainment space across various sectors

Advertising industry in India

Point of view:Interview with Mr. Shashi Sinha — CEO, India, IPG Mediabrands

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Industry news

1. “ZEEL plans to launch two GECs next fiscal,” TelevisionPost, 20 March 2014, via Factiva; “ZEEL to shutter music and lifestyle channel Zee Trendz,” TelevisionPost, 21 March 2014, via Factiva.

2. “TV18 expands regional news bouquet with ETV News Bangla,” TelevisionPost, 11 March 2014, via Factiva; “ETV plans to launch a Punjabi news channel,” TelevisionPost, 25 March 2014, via Factiva.

3. “ABP plans Gujarati news channel,” Business Standard, 4 March 2014, via Factiva. 4. “Star India completes takeover of Asianet,” TelevisionPost, 12 March 2014, via Factiva.5. “MSM to shift telecast operations from Singapore to India,” TelevisionPost, 18 March 2014, via Factiva.6. “Dish TV out to get cable TV subscribers with new sub-brand Zing,” TelevisionPost, 5 March 2014, via Factiva.7. “Hathway Cable plans content game,” TelevisionPost, 4 March 2014, via Factiva.

Television

ZEEL to launch two GECs in FY15

Zee Entertainment Enterprises is planning to launch two entertainment channels in FY15. The first of these is to be Zee Zindagi, which will target Tier II and III towns. It will mainly air Pakistani syndicated content, which ZEEL has acquired from MipTV. The second will be another Hindi general entertainment channel (GEC), which is expected to be called & TV. This takes the total number of ZEEL’s GECs to five. The company has decided to shut down its lifestyle channel Zee Trendz because of its below-par performance.1

TV18 expands its regional news bouquet

TV18’s ETV News Network is aggressively adding regional news channels. The network launched three new regional news channels, ETV News Bangla, ETV Kannada and ETV Haryana and Himachal, in March 2014. In addition, it is set to also launch two more news channels, ETV Gujarati News (in the first quarter of FY15) and ETV Oriya (by 31 July 2014). In addition, it is planning to start a Punjabi news channel in the near future.2

ABP planning Gujarati news channel

The ABP Group is planning to launch a Gujarati news channel to enhance its presence in the regional news channel segment. The channel is expected to go on air soon. ABP has decided to retain its focus on regional news, since its experience in the regional GEC market was not positive, with it having to shut down its Bengali GEC Sananda TV channel soon after it was launched in 2011.3

Star India completes takeover of Asianet

Star India has acquired its remaining 13% stake in Asianet Communications Ltd (ACL). It acquired a 12% stake in ACL in August 2013. This took its total holding in the company to 87%. ACL broadcasts and operates Malayalam channels Asianet and Asianet Plus as well as Kannada channel Suvarna.4

MSM to move telecast operations from Singapore to India

Multi Screen Media is in the process of moving the telecast operations of all its channels from Singapore to India. Since the company’s inception, it has been airing all its MSM channels from Singapore, including its Sony Entertainment Television (SET), SAB, Max, Mix, Six and Pix channels. After this move, Singapore will be the company’s offshore office. This decision is expected to save substantial tax for the company.5

Dish TV launches new sub-brand Zing

Dish TV has created a sub-brand, Zing, to target regional markets and acquire price-sensitive subscribers in Phases III and IV of digitization. The company will now have two brands — one targeting DTH subscribers and the other targeting the low-paying segment in the market. Dish TV’s new brand is initially expected to be launched in West Bengal and Odisha. Thereafter, the company plans to introduce it in Maharashtra and Gujarat. Zing will focus on regional language channels and will be available at relatively low prices.6

Hathway Cable to launch cable channels

Hathway Cable & Datacom is planning to revive its cable TV operations. The company is gearing up to re-launch its cable movie channel, Hathway CCC Cine, which it had shut down in 2011. It is also planning to launch an infotainment channel, Hathway Life, with content from the National Geographic Channel. In addition, the company is set to launch more channels covering genres including general entertainment, kids, music, regional movies, lifestyle and adventure.7

Hinduja Ventures acquire HITS licence to invest US$100 million in its venture

The Ministry of Information and Broadcasting (MIB) has granted a headend-in-the-sky (HITS) licence to Grant Investrade, the investment arm of Hinduja Ventures. Grant Investrade will be the third company to receive a HITS

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8. “Hindujas get HITS licence, to invest US$100 million in the venture,” TelevisionPost, 6 March 2014, via Factiva.9. “MSOs may feel the pinch as TRAI gets SC permission to revise tariff,” TelevisionPost, 3 March 2014, via Factiva.10. “China’s Shenzhen Coship plans to set up STB making unit in India,” Indiantelevision, 13 March 2014, via Factiva.11. “Six newspapers come together to launch common ad platform,” Business Standard,

27 March 2014, via Factiva.12. “Cinépolis may invest INR8 billion in Indian operation by FY17,” Economic Times, 9

March 2014, via Factiva.13. “RW Media, PE fund acquire stake in Abundantia Entertainment,” TelevisionPost, 20

March 2014, via Factiva.

licence, the first two being the Essel Group and Noida Software Technology Park Ltd. (NSTPL). The company is awaiting a few more clearances before it launches its HITS service. It plans to invest US$100 million in the service to help it expand its operations in new geographies, particularly those covered under Phases III and IV of DAS.8

TRAI to receive SC’s permission to revise cable TV tariffs

The Supreme Court (SC) has shown the green signal to the Telecom Regulatory Authority of India (TRAI) to revise non-addressable cable TV system tariffs in order to make inflation-related adjustments. Tariffs for the non-addressable system have remained unchanged since they were increased in 2009. Multi system Operators (MSOs) are, however, worried, since any rise in tariffs would mean an increase in their content cost-related pay-out to broadcasters, and make it difficult for them to recover money from local cable operators (LCOs).9

China’s Shenzhen Coship to set up STB-making unit in India

Shenzhen Coship Electronics Co. Ltd., a cable TV and broadband equipment manufacturer in China, plans to set up a set-top box (STB)-manufacturing facility with the capacity to produce 250,000 STBs a month in India. The company did not disclose the quantum of investment required to set up the facility, but indicated that the average cost of producing a single STB would be around US$22. Shenzhen Coship, which has supplied 10 million STBs in India since 2007, is planning to export another 5 million STBs to the country by 2014.10

Publishing

Six newspapers coming together to launch common ad platform

Six dailies, the Hindustan Times, The Hindu and The Telegraph, and their sister publications, The Hindustan, The Hindu Tamil and Ananda Bazar Patrika, have formed an alliance, One India, to come together on a common advertising platform. The alliance will allow advertisers to access the six newspapers’ combined reach through a single point of contact and avail of a cost advantage.11

Filmed entertainment

Possibility of Cinépolis investing INR8 billion in its Indian operations by FY17

Cinépolis is planning to invest around INR8 billion in India to take its number of screens in the country to 400 from 84 in 13 cities at present. After this expansion, its seating capacity will go up to 88,000 from 17,600 current. Cinépolis’ expansion plans envisage its opening 180 screens in southern India, including 70 in Andhra Pradesh and Telangana.12

RW Media, PE fund acquire stake in Abundantia Entertainment

Abundantia Entertainment, founded by Vikram Malhotra, has roped in RW Media and Singapore-based private equity firm Callista Capital as strategic investors. The two investors will together hold a 49.9% stake in Abundantia Entertainment, which has a 50% stake in Crouching Tiger Motion Pictures and is producing around 11 films at an estimated cost of INR2.5 billion.13

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14. “P&G, Coke in talks to launch mobile video streaming for effective & cheaper advertising,” Economic Times, 12 March 2014, via Factiva.15. “Ronnie Screwvala to play the soccer game, eyes team in Indian Super League,” TelevisionPost, 11 March 2014, via Factiva; 16. “Corporate bigwigs like Anand Mahindra, Piyush Pandey and Rajiv Luthra join hands to launch Pro-Kabaddi League,” Economic Times, 15 March

2014, via Factiva.17. “JWT acquires majority stake in Social Wavelength,” TelevisionPost, 27 March 2014, via Factiva.18. “Prime Focus Tech acquires US firm for INR560 million,” TelevisionPost, 11 March 2014, via Factiva.

New media

P&G and Coke in talks to launch mobile video streaming

Procter & Gamble and Coca-Cola are jointly looking at launching video channels over mobile phones to deliver branded content and advertisements directly to consumers in India. The companies are in preliminary discussions with telecom operators to start their own streaming video channels, which consumers will be able to access free of cost. This initiative is based on the fact that airing ads over telecom networks, is cheaper than running them on TV, and in addition, will enable them to measure their impact.14

Sports

Ronnie Screwvala’s Unilazer ventures into sports

Unilazer Ventures, the private equity company promoted by Ronnie Screwvala, has floated a sports management company, Unilazer Sports, and has roped in former Red Bull India’s sports marketing head Supratik Sen as its CEO. Unilazer Sports will focus on teams, leagues, academies as well as on creating IPs and franchises in selected sports. Screwvala has also bought Mumbai-based football club and training academy, the Premier India Football Academy (PIFA FC), and plans to bid for a football team in the ISL. Screwvala wants to invest between INR500 and INR750 million on football over the next two to three years.15

Mashal Sports launches Pro-Kabaddi League

Mashal Sports, a company promoted by Anand Mahindra, Piyush Pandey, Rajiv Luthra and Charu Sharma, has launched the Pro-Kabaddi League, which will be played between eight city teams later in 2014. The company has selected four of the eight team owners including Uday Kotak, MD of the Kotak Mahindra Group; Kishore Biyani, Group CEO of the Future Group; Ronnie Screwvala, former owner of the UTV Group, and Rajesh V Shah, MD of the Mukand Group.16

Marketing services

JWT acquires majority stake in Social Wavelength

JWT, a global marketing communications agency, has acquired a majority stake in Social Wavelength, one of the leading social media agencies in India. Founded in 2009, Social Wavelength is headquartered in Mumbai and has offices in Delhi and Chennai. The company employs more than 170 people and its key clients include Franklin Templeton, Apollo Hospitals, Idea Cellular and GE India Industrial.17

Others

Prime Focus Tech acquires US firm for INR560 million

Prime Focus Technologies (PFT), a subsidiary of Prime Focus, has acquired a US-based company, DAX, for INR560 million. DAX provides cloud-based production workflow and media asset management applications to the entertainment industry. This acquisition makes PFT the owner of DAX’s patented technology and products, including its Digital Dailies solution, which looked upon as an industry standard in TV production.18

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Aditya Birla PE in talks to acquire a stake in Adlabs Imagica

Aditya Birla Private Equity is in talks to acquire a 6% stake in Adlabs Imagica, India’s largest entertainment theme park, for INR1 billion. It has valued the company at INR16.67 billion. The deal is part of a sale of shares ahead of a public offer, for which Adlabs Imagica has appointed investment banks Deutsche India Equities, Kotak Mahindra Capital Company and Centrum Capital.

The company plans to raise around INR4–INR5 billion from its planned IPO.19

19. “Aditya Birla PE in talks to pick up a stake in Adlabs Imagica,” Economic Times, 24 March 2014, via Factiva.20. “Rajesh Kamat elevated to CA Media Asia COO,” TelevisionPost, 10 March 2014, via Factiva.21. “Vineet Bajpai elevated as CEO of TBWA\India Group,” TelevisionPost, 14 March 2014, via Factiva.22. “Rajiv Vaidya steps in as India CEO of Spuul, Prakash Ramchandani gets global role,” TelevisionPost, 9 March 2014, via Factiva.

People movement

• CA Media has elevated Rajesh Kamat to the position of COO of its Asian region. In his new role, Kamat will relocate to Singapore in April 2014 and will also continue to oversee CA Media operations in India.20

• TBWA India has appointed Vineet Bajpai CEO of the TBWA/India group. Prior to this, he was CEO of the group’s digital agency Magnon/TBWA. Furthermore, TBWA’s President of South and Southeast Asia, Philip Brett has been named the Chairman of the TBWA/India group to closely align the India group with TBWA/Worldwide.21

• Spuul.com, the online streaming service for Indian cinema and television shows, has appointed Rajiv Vaidya as its CEO for the Indian market. Spuul’s current India CEO, Prakash Ramchandani, is to move to its headquarters in Singapore and assume the global role of its Chief Content Officer.22

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There was an improvement in India’s advertising industry in 2013. Expenditure on advertising grew at an estimated 11.1% y-o-y to reach INR319 billion in 2013 from INR287 billion in 2012. Print and TV continued to garner the maximum share of expenditure on ads. In 2013, print accounted for around 41.3% of the total expenditure on media advertising, down from 41.7% in 2012, and TV for around 38.9% of the expenditure on total advertising, down from a 40% share in 2012. In terms of rupee value, print advertising revenues grew by 10% y-o-y to INR131.7 billion in 2013 and TV by 8.2% y-o-y to INR124.1 billion during this period.23

Estimated share of expenditure on advertising in media in India

Print41%

TV39%

Digital10%

OOH6%

Radio3%

Cinema1%

2013

Print37%

TV38%

Digital16%

OOH5%

Radio4%

Cinema0%

2018E

The digital medium is fast catching up and has become the third largest among the segments with a 9.6% share in 2013. The digital medium grew the fastest to reach INR30.5 billion, up 32% from INR23 billion in 2012. It is expected to garner ad revenues from the print and TV mediums to earn an estimated 40% of TV ad revenues by 2018.

Elections to drive growth in ads

In 2014, the advertising market is expected to swell to around INR360 billion — a 12%–14% y-o-y growth. The largest contributor of this growth will be the General and State Assembly elections, which are expected to contribute more than INR25 billion to the industry. Both print and TV are expected to benefit from the elections that to be held in April and May 2014. In addition, people will also witness several major sporting events such as the Football World Cup, the Asian Games, the T20 World Cup and the IPL 7, which are expected to further boost expenditure on ads.

Advertising on TV is expected to witness an improved growth of 11%–12% y-o-y in 2014. In addition to the General Assembly elections, it is forecasted to get a boost because of ongoing digitization as it penetrates Tier II and III cities, as well as due to the launch of new channels. However, TRAI’s setting an ad cap is expected to adversely affect TV advertising revenues. Its new regulation, which is expected to make TV ad slots more expensive, can result in advertisers moving to other media. We estimate that, subject to performance witnessed in the segment, the ad cap could affect under-performing channels and deplete 5%–25% of their ad revenues.

The digital initiative is expected to gain the most from the expected shift, since it is a more cost-effective medium than others. The share of “search and display”, which forms the largest chunk of digital advertising, is expected to drop significantly in the digital mode. Mobile, social and video advertising have also begun to increase with the exponential growth in penetration of mobiles and smartphones.

Print advertising is expected to grow at 7%–8% y-o-y in 2014, largely on the back of advertising by governments and political parties before the General Elections in

23. “Polls to the rescue of advertising: Pitch-Madison,” Business Standard, 20 February 2014, via Factiva.

Source: EY analysis

In focus: Advertising industry in India

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1H13. The growth in print is expected to be exclusively in newspapers, with the magazine advertising market expected to shrink by 5%–10% this year after being stagnant for three years.

Radio is expected to grow by 8%–10% if Phase III of FM licenses is not implemented. Its implementation could enable the industry to double its revenues in four years.

Rural markets to boost expenditure on advertising

While the elections are expected to give a shot in the arm to overall expenditure on advertising, the continued emphasis of FMCG companies on rural markets will also help to do this. Given the significant rural economic growth witnessed in the country, FMCG companies are expected to focus their energies on rural markets. Consequently, agencies are also strengthening their rural marketing capabilities — Aegis Media India is launching Carat Fresh Rural, the rural division of Carat Fresh Integrated, and WPP’s subsidiary Grey has acquiring a majority stake in RC&M, one of India’s largest providers of rural communication and marketing services.

With rural India relatively being insulated and expected to drive consumption with enhanced agricultural yield in coming months, it is not surprising that more than ever before, the focus of marketers has expanded to rural markets. However, boosting urban consumption in discretionary categories this market continues to be a challenge.

Uncertainty over media-measurement system

The Government’s new TV rating guidelines could result in a dark period for ratings, since these prohibit any single company or entity from having paid-up equity in excess of 10% in rating agencies, broadcasters, advertisers or advertising agencies at the same time. This disqualifies TAM from operating as a TV rating agency because Kantar, a WPP company, owns a 50% stake in it; Broadcast Audience Research Council (BARC) will only be able to roll out its services by 2H14.

In addition to uncertainty over the TV measurement system, the industry is also facing issues on print readership, since publishers of newspapers and magazines are demanding withdrawal of the latest Indian Readership Survey (IRS) 2013 results released by the Media Research Users Council (in association with Nielsen). Radio Audience Measurement (RAM), which measures radio listenership, is also facing several issues that need to be addressed.

Sports and cinema advertising to gain in importance

Sports advertising is expected to get a fillip this year with an assortment of sporting events being scheduled all the year round. Indian audiences’ gradual shift in watching sports other than cricket has led to marketers are also showing an interest in these. Sports leagues such as the IBL and the Hockey India League as well as global sporting events such as the Football World Cup and the Asian Games are expected to gain popularity this year.

Another medium of advertisement, which is fast gaining ground, is cinema advertising. In addition to traditional advertisements, marketers are exploring new ways of connecting with their audiences. They are tying up with film-makers and are taking in-film branding to a higher level than ever before by integrating brands into entertainment content. More and more products and brands are opting for subtle in-film branding, which is part of the storylines of films and is not easy to ignore, in order to promote themselves and reach out to a large audience. For example, Discovery Channel and Maruti Suzuki tied up with Jab Tak Hai Jaan and Mere Dad Ki Maruti, respectively, and were an integral part of the storylines of these films. Similarly, Fortis Hospital had tied up with Krrish 3.

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“Rule of three” — stronger than ever

There has never been stronger proof that media companies in the top three positions in their genres/regions will continue to be profitable, while others will languish. The market has clearly identified its preference for leaders over the past two years, and we expect that these will continue to benefit from the growth in their ad rates, while others will not be able to boost their revenues to the same extent and may even see a decline.

Increased accountability expected from media companies

Given the slowdown in economic growth rates and the corresponding pressure on margins (largely due to inflationary pressures), advertisers are expected to continue to demand an increased linkage between their media spend and revenue/market share. We expect that this linkage between the performance of ads and the cost of advertising will increase, as is already true in the case of many large advertisers. TVT measurement is likely to be more effective than other measurement modes.

Way forward

The year 2014 continues to be uncertain due to the uncertain economic and political environment, and the ambiguity surrounding the media measurement system. However, the advertising sector is expected to pick up after the general elections and once measurement-related issues are resolved. Furthermore, new and innovative mediums of advertisements, such as location-specific advertising and augmented reality, are expected to become more common with marketers looking to improve their ROIs.

Moreover, advertisers, agencies and broadcasters are expected to begin focusing on alternative measurement metrics such as social listening and online panels due to increased accountability standards witnessed in the segment. They are expected to follow consumers’ interactions more keenly on the internet to create audience segments, based on interests, and deliver the right ads to the right people at the right time in a cost-effective manner.

Bharat Rajamani

Bharat Rajamani is an Associate Director with EY’s Risk Advisory Practice. During his sixteen years of experience at EY Bharat has successfully reviewed advertising campaigns across various platforms including digital for clients across different segments such as FMCG, Financial Services, Telecom & Automobiles. He has also provided ROI based models to clients by using online planning andreporting tools like comscore and vizisense.

Telephone: + 91 22 6192 0489 Email: bharat.rajamani@in.ey.com

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1. What do you feel about advertising in India in 2013?

The year 2013 was a bit of a rough year. Growth is still seen in media companies. From the adex point of view, the auto, financial and telecom sectors have slowed down for different reasons. The adex has not grown by more than 8%–9%, and a significant amount was value-driven rather than volume-driven. The new TRP measurement system and TRAI’s guidelines on ad caps were the main issues faced in 2013 and have been carried forward to 2014. These have been implemented this year. 10+2 has already been implemented in part by the big channels, and the remaining part will be effected by July/August 2014. News channels have not implemented it so far. The impact of digitization is apparent, especially with completion of phase II. Channels now expect 25%–30% of their revenues to be generated by digital subscriptions.

2. Which are the advertising platforms you see growing in the future?

Digitization is picking up. The future is going to be digital and gradually take over. With TV growing at 8%–10% a year, digitization is expected to be one-fourth or one-fifth of TV. It is expected to grow at 25%–30% in the next four to five years and eventually lead to it accounting for 40%–50% of the total TV segment.

Digitization is in two parts — one is display/advertising and the other is search. Using display advertising, many FMCGs target young audiences that are immune to traditional advertising, realizing that they need to move in quickly and approach these through multimedia. With respect to search, many players are looking at measurement. “Social” is still a small part of display, and “measurement” exists, but is not as big as display or search. Advertising is ultimately driven by FMCGs, and since these are moving into the digital and social modes, this space can also be expected to grow correspondingly.

3. With the launch of many cars, do you see a shift in the ad spend in the automobile sector? Is it exploring any new platforms?

Many auto manufacturers have jump-started their advertising. Earlier, they would have spent a small amount on digital platforms, but they took a quantum leap in 2013! Several of them are also moving toward “fulfilment.”

4. What is your outlook for the sector from the perspective of cinema advertising?

There are two parts in cinema advertising — the profits earned on satellite rights and that generated by theatricals. Of late, advertising spends have been increasing with the increasing number of films being

Point of view: Shashi Sinha — CEO, India, IPG Mediabrands

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released on TV weeks after their theatrical release. With respect to theatricals, these are expected to gradually become segmented and niche. Audiences are becoming more discerning and the only way to capture them is through digitization. In-cinema advertising will however continue to be strong due to the multiplex boom.

5. What is your view of TAM and the measurement scenario?

The new measurement system is so far on track. Final details will be finalized soon and put into play within the next four to five months.

6. What is the attitude of advertisers to the sports sector in India?

Globally, sports dominates advertising spends. However, the Indian story is different because measurement of delivery is biased toward mass consumption and unfavorable toward niche genres. This also applies to broadcasters, content and sports. However, advertisers are realizing that sports attract the youth, which is their prime target audience. Consequently, we can expect to see growth in sports advertising.

7. Do you see any particular category shifting its focus from one platform to another? What is your outlook for 2014?

The auto and digital segments are extremely under-leveraged and I think this will change in 2014.

It is tough to say what will the outlook for 2014 be because it is an election year. Therefore, ad spends are bound to rise on mass media. This is not a big deal overall, but comes at a high value. Furthermore, measurement mechanisms are changing and the 10+2 cap is expected to be implemented. Due to these complications, it is very difficult to predict the scenario. However, looking at the Indian economy, I think there will be value growth, but not necessarily an increase in volume.

Poised for growth: FM radio in India

This publication was released in association with the CII and provides an analysis of the FM radio industry in India.

Film industry in India: New Horizons

This report was released in association with the LA India Film Council. The report highlights how the Indian film industry will benefit by partnering with Hollywood.

Our M&E publications

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Monetizing your content in a digital world

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Spotlight on China: Building a roadmap for success in media and entertainment

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In the decade of the customer, knowing your customer means owning your data

The report presents innovative solutions to help our clients stay competitive in this decade of the customer – domain-name consolidation across multiple online properties and its benefits, and the lessons learned and challenges faced.

Roadmap for single window clearance for film production in India

This report was released in association with LA India Film council. The report looks at existing Indian regulations, co-production agreements with other countries and the clearances required, and in the process, highlights some development areas.

Purchase-to-Pay strategies for the Media & Entertainment industry

This report discusses the challenges of creating an effective procurement organization and presents strategies for optimizing the purchase to pay cycle. With continued pressures from an increasingly competitive marketplace and changing consumer demands, M&E organizations strive to better align cost structures to achieve operating targets.

For more information, please contact Radhika Pradhan at radhika.pradhan@in.ey.com or + 91 022 6192 1516.

The business of experiences: The Indian events and activation industry

This report was released in association with EEMA at Eemagine 2012. The first report on the events and activation industry, this report captures the emerging trends and challenges that this nascent sector faces.

Digital agility now!

This report describes how digital leaders are showing the M&E path forward by using new technology not only to deliver new media products and services, but to build more agile organizations capable of sensing and responding far faster to technology-induced shifting customer attitudes and marketplace opportunities and risks. The report also describes how “Other respondents” have been slower to change.

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Our M&E practice

Industry is the cornerstone of EY’s approach to professional services. M&E is one such significant focus area. The firm’s M&E practice has more than 2,000 professionals across more than 100 countries, who focus on various issues and challenges the industry faces. Globally, EY leads the audit market share in the overall M&E industry on the 2008 Fortune 100 list. The firm is also the leader among the Big Four in the overall M&E space on the 2007 Russell 3000® Index.

Whether it is the traditional press and broadcast media or the multitude of new media options, audiences now have more choice than ever before. For M&E companies, integration and adaptability are becoming critical success factors.

EY’s Global Media & Entertainment Center brings together a global team of professionals with in-depth technical experience in assurance, tax, transaction and advisory services to help you achieve your potential.

For further information on EY’s services for the media and entertainment industry, please contact:

The center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues. Ultimately, it enables us to help you meet your goals and compete more effectively. This is how we make a difference.

EY India has a dedicated M&E practice of more than 160 professionals across 15 key segments of the industry. We provide services to many of the country’s leading M&E companies as well as to global media giants operating in the country. We have developed a wide range of services, such as entry strategy, private equity placement, due diligence, IT security review, organization structure, performance improvement and tax structuring, to name a few. This has enabled us to establish a strong presence in each segment of the industry.

As your advisors, we can help you respond quickly and effectively to the challenges the entertainment industry faces today.

Farokh T. Balsara Partner and Sector Leader — Media & Entertainment

Ernst & Young LLP The Ruby, 29 Senapati Bapat Marg, Dadar (W) Mumbai — 400028

Tel: + 91 022 61920000 Fax: + 91 022 61921000

Email: farokh.balsara@in.ey.com

Ajay Shah : TV Broadcasting

Devendra Parulekar : TV distribution

Rakesh Jariwala : Filmed entertainment; Sports

Ashish Pherwani : Print; Radio; Out-of-home; Events; Marketing agencies

Raghav Anand : New Media

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ChennaiTidel Park, 6th & 7th Floor A Block (Module 601,701-702)No.4, Rajiv Gandhi Salai, Taramani Chennai - 600113Tel: + 91 44 6654 8100 Fax: + 91 44 2254 0120

HyderabadOval Office, 18, iLabs CentreHitech City, MadhapurHyderabad - 500081Tel: + 91 40 6736 2000Fax: + 91 40 6736 2200

Kochi9th Floor, ABAD NucleusNH-49, Maradu POKochi - 682304Tel: + 91 484 304 4000 Fax: + 91 484 270 5393

Kolkata22 Camac Street3rd floor, Block ‘C’Kolkata - 700 016Tel: + 91 33 6615 3400Fax: + 91 33 2281 7750

Mumbai14th Floor, The Ruby29 Senapati Bapat MargDadar (W), Mumbai - 400028Tel: + 91 022 6192 0000Fax: + 91 022 6192 1000

5th Floor, Block B-2Nirlon Knowledge ParkOff. Western Express HighwayGoregaon (E)Mumbai - 400 063Tel: + 91 22 6192 0000Fax: + 91 22 6192 3000

NCRGolf View Corporate Tower BNear DLF Golf CourseSector 42Gurgaon - 122002Tel: + 91 124 464 4000Fax: + 91 124 464 4050

6th floor, HT House18-20 Kasturba Gandhi Marg New Delhi - 110 001Tel: + 91 11 4363 3000 Fax: + 91 11 4363 3200

4th & 5th Floor, Plot No 2B, Tower 2, Sector 126, NOIDA 201 304 Gautam Budh Nagar, U.P. IndiaTel: + 91 120 671 7000 Fax: + 91 120 671 7171

PuneC-401, 4th floor Panchshil Tech ParkYerwada (Near Don Bosco School)Pune - 411 006Tel: + 91 20 6603 6000Fax: + 91 20 6601 5900

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