Welcome to the December 2012 edition of
The Newsreel, Ernst & Young's newsletter on the media and entertainment (M&E) industry.
India’s M&E industry has been witnessing increasing M&A activity across all the media segments. In the filmed entertainment segment, PVR has acquired Cinemax. In the publishing domain, Amar Ujala is planning to buy out its stake from DE Shaw; Harper Collins Worldwide has ended its JV with Living Media and became the sole owner of HarperCollins India. In the advertising sector, Publicis has made two acquisitions in the digital marketing space and PE firm Samara Capital has acquired Newswire18 from Network18.
The TV broadcasting market saw an increased number of channels being launched, particularly in niche categories. Broadcasters are keen to take advantage of digitization and are offering channels that focus on subscriptions, which are only available on DTH and digital cable platforms. For example, Viacom18 and Walt Disney have launched their preschool channels, Nick Junior and Disney Junior, respectively; NDTV plans to launch two international channels, Trace Sports and ITV Granada. In addition, HBO Asia has partnered with Eros to launch two ad-free channels in India.
The outdoor recreation and entertainment segment is witnessing the renewed interest of big players. Singapore-based Kids Inc. and Shahrukh Khan have formed a JV to launch a Kidzania-branded theme park and have bought the India franchise rights from the Mexican edutainment company Kidzania. Adlabs is planning to build a theme park, which will be spread over 300 acres and will also have a hotel, at a cost of around INR16 billion. Both the theme parks will be located on the outskirts of Mumbai, and Kidzania plans to expand its operations further into the NCR region and Bengaluru.
Ernst & Young, in association with CII, recently released the report Poised for growth: FM radio in India. We present a brief summary of the report in our “Point of view” section.
I hope you enjoy reading this edition of The Newsreel. We look forward to your valuable feedback and suggestions to enable us to make this newsletter even more interesting and useful for you.
With kind regards,
Farokh T. Balsara
Media & Entertainment Industry Leader
Europe, Middle East, India and Africa