Welcome to the October 2013 edition of The Newsreel, EY’s newsletter on the media and entertainment (M&E) industry.
India’s M&E industry saw increased activity in the TV broadcasting space, with TV distributors launching niche channels to capitalize on the increased channel-carrying capacity enabled by digitization. This has led to Zee Entertainment Enterprises Limited (ZEEL), Zee Media, Star India and the Times Group launching new general entertainment channels (GECs) and niche channels.
The TV broadcast and TV rating measurement segments are witnessing significant activity on the regulatory front. Implementation of the Telecom Regulatory Authority of India’s (TRAI’s) 12- minute ad cap has been put on hold till November 2013 by the Telecom Dispute Settlement and Appellate Tribunal (TDSAT). The Information and Broadcasting (I&B) Ministry has asked TRAI to reconsider the ad cap on news channels, suggesting that its implementation could be made synchronous with the Government’s digitization drive.
Furthermore, various companies are undertaking cost-cutting measures due to challenging economic conditions. In the TV broadcasting segment, Bloomberg TV and NDTV Good Times have reduced and realigned their staff to cut costs. In the publishing segment, Outlook Publishing has reduced the frequency of its magazine Outlook Money from a monthly to a fortnightly publication. ABP has sold its Business World magazine, while the Future Group is looking to divest its 65% stake in comic book company ACK Media.
With today’s youth and working professionals being hard-pressed for time, they prefer their entertainment “on the go.” Keeping this in mind, broadcasters are becoming innovative in the content they present in their entertainment channels and are focusing on finding novel ways in which they can monetize their digital offerings.
This month, we explore the digital entertainment segment, its rapidly growing popularity and the key challenges broadcasters and content distributors of digital entertainment face. This edition of Newsreel includes features on TV game shows in India and “over-the-top” strategies for television broadcasters. We also present the views of Nitesh Kripalani of Sony Liv, Sony’s premier digital entertainment brand, on evolving trends in the TV industry’s digital space.
I hope you enjoy reading this edition of The Newsreel. We look forward to your valuable feedback and suggestions, which will enable us to make this newsletter even more interesting and useful for you.
With kind regards,
Farokh T. Balsara
Partner and Sector Leader — Media & Entertainment