sun vs zee.pdf

8/14/2019 Sun Vs Zee.pdf

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RollNo. Name

2012068 AlayBharatkumarShah

2012077 GauravAshokMaybhate

2012086 Manvendra Dattatray Chougule

2012095 Priyank Pradeep Gujrani

2012120 Sushovan Saha

2012121 SwayambharMajumder


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GrowthopportunityinagrowingeconomylikeIndia

IndiantelevisionadvertisementrevenuegrowthdrivenbyGDPGrowth

CableTVdigitization:Subscriptiondrivenrobustgrowth

SubscriptionRevenue:IncreasingBroadcastersshare

Revenue focus: International and re ional market

IncreasingnumberofHDandotherpremiumchannels:Anewtrend

Regulatoryinterventioncancurbtheadvertisementrevenuegrowth


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4/31

5 Forces Score Rationale

Threat of 2 High initial cost & due

new

entrant

to sta e n ustry,

threat of new entrant is

low

Bargaining 3 Dependency on MSO

power of

suppliers

and LSO for distribution

allow them to demandhigher prices

Competitio 4 Competitors are equally

n in

industry

well placed. Existing

players entering into

new genres.Threat of 1 Mobile base TV and

substitute

product

Internet based TV are

in initial phase and see

as addition to home TV

& not replacement

Bargaining

power of

buyers

2 ZEEL & SUN have vast

portfolio of channels

and agreement with

0

Nointeraction

2

Low

4

High

1

Insignificant

3

Average

5

Veryhigh

(MediaPro)


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6/31

GrowingTelevisionIndustry

&Cable

subscriptions


7/31

Cable digitisation is expected to create significant opportunities

for content providers

Broadcasters believe that content is underinvested and with

the improving economics on account of digitisation

Content

Production

Growth is expected to be driven by a sharp increase in

subscription revenues while carriage costs are expected torationalize in metro markets

In digitised areas, carriage costs appear to have declined. At the

same time, TAMs increased coverage of Less than Class I (LC1)

markets has resulted in some of the carriage savings being

redirected to increase reach in LC1 markets

roa cast ng

Phase 1 of cable digitisation kickstarted, and met with varying

degrees of success in the four metros

Industry discussions suggest that the digitisation in Phase 1

cities ma not all be addressable etDistribution Completion of Phase 2 digitisation is likely to get delayed by 9

to 12 months.


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13/31

Highviewershipratings

Completebouquetofchannels

Highsubscriptionrevenues

LaggingbehindStarPlus

ProblemofattritionIncreaseinoperatingcosts

'

entertainmentand

Media

sector

Digitisation

Increasedcompetition

Decliningviewershipandrevenueshare

ofGECchannels


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Unlikelyfor

advertisement

revenue

growth

to

continue

at

high

rates:

MediaProtractionanddigitizationdrivesubscription

revenues:

Sportslossestocontinue

EmergenceofOvertheToptelevisionplatformmaysurprise

positively


15/31


16/31

Stablesubscriptionrevenueanddecliningadvertisement

revenuegrowth

n e y ocon nue

withHigh

revenue

growth

Witheffectofdigitizationandincreasingpenetration,subscription

revenueshare

is

expected

to

increase

from

43%

to

50%

from

FY2013

Improvingshareof

subscriptionrevenue:

Advrevenuesharewilldeclinefrom52%to48%forthesameperiodHistorica tren

expectedtoreverse

Onaccountofreductionincarriagecostduetodigitization,EBITDA

marginisexpectedtoimproveslightly

SlightlyImprovingMargins


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21/31

WE RE ON YOUR SIDE


22/31


23/31

SUNTVBusinessPortfolio


24/31

SunNetworkwithitspresenceacrossgenres

andwithadominantmarketshareinthefour

southernstates

of

ensures

continued

and

sustainedviewership

and rominentroleintheMediaand

Theyareconfinedonlyto4statesofthe

country,so

can

never

beat

the

channels

ofZEEorSTARwhicharediversified

acrossthenation

EntertainmentIndustry

Theongoingdigitalisationofcontent, Thecompetitionandincreasingpricesmay

contentand

the

rapidpaceofinvocationcreate

opportunitiestoservenewcustomersin

desiredprogrammingandartistictalent.Theirsuccessdependsonourabilitytocaterto

viewerperformanceandmaintainhigh

newmar ets .


25/31

Digitisation

to

provide

fillip

to

Sun

TVs

subscription

revenues

InternationalsubscriptionrevenueandIncomefrom

moviedistribution

to

provide

support

to

top

line

Domesticcablesubscriptionrevenuegrowthto


26/31


27/31

CONTENT REVENUES

Focus

on

regionalmarket

Diversification

Digitalization

International

subscri tionrevenue

DiversificationCollaboration

Distribution

inradioandFM

Nichecontent

&incomefrommovie

distribution

STRATEGYIncrease the market share in south Indian states and radio all over the

country.In

addition

to

it

increase

the

return

to

the

shareholders

of

the

company


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ZEELhas

Lower

composition

o a vertisement

revenue

comparetoSUNTV


29/31

growthrate

as

well

as

low

CAGR

in

revenue


30/31

ZEEL SUNTV

ey s ou ocus on

diversification of offerings likegoing to radio industry etc

They should launch some

more channels to cover thenation

e r a r on ra e s morethan industry average. They

should focus on retaining the

They are more focused onsouth Indian states.

Change of government can

operational cost

Their certain channels has very

harm them

They should try to exploitthe international segments

,

their regional channels, theyshould focus more on localads as com ared to national

like gulf As a lot of NRI (from southern

part of the country) are

ads settled there


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..Thank You..

sun vs zee.pdf

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