For the complete report, get in touch with us at : info@netscribes.com As India looks towards incorporating digitization framework in the broadcasting sector, conversion of analogue to digital spells evolution of a new trend in the Indian market. Though there has been some penetration of digital broadcasting media in India in the likes of DTH and digital cable, yet it was predominantly nominal. However, this is going to undergo some kind of a volte-face as the Indian sector is bracing itself for a conversion to digital from analogue transmission. Transition of the mass market from analog to digital forms a major challenge to the players as the Government mandates to digitize the entire cable network by the end of 2014. Newer modes of content delivery such as IPTV and mobile TV look at increasing their foothold as the sector holds itself up for rapid growth in this domain. The report begins with an introduction section which throws some light on the segmentation of the digital broadcasting sector defining the key media vehicle that uses this technology in India. It is followed by global digital broadcasting sector along with its market size and growth. A brief take on the Indian digital sector follows next along with its market size and growth. The value chain analysis tells about the chief components that constitute the chain of transmission from the broadcaster to the end consumer. It then proceeds to a brief description of the revenue model that is prevalent in the sector. Though the primary modes of garnering revenue include revenues from subscription, lease rentals of logistical supports like set top boxes different media like IPTV or even digital radio might be having customized channels beyond the regular. This section gets concluded with a Porter’s Five Forces analysis for the market. The report then narrows down to illustrate the different segments of media that requires digital broadcasting technology for its transmission. The report speaks about five distinct components that use digital content and are namely Digital Cable TV, DTH, IPTV, Mobile TV and Digital Radio. Each of the individual segments is dealt individually detailing its description as well as market size and growth. Individual segments are provided with the system framework of their transmission from the content provider to that of the end consumer. This section ends with a brief take on the broadcasting spectrum that is used in the sector. A brief description of the drivers that helps the sector to prosper include emerging middle class and rising disposable income, increase in television and radio penetration, complete digitization of TV services and increase in sale of LCD and LED TVs. Though entertainment has become a quintessential input in our daily diet and TV penetration has increased manifold, products like digital TV or subscriptions like DTH have witnessed a separate class of consumers.

1. Digital Broadcasting Market ‐ India
April 2012

2. Executive Summary
 Global digital broadcasting sector has risen considerably and is set to grow at a rate of p1% over
20‐‐
Market  Caters to ‐ primary segments for content delivery namely q1 and q2
 Indian digital broadcasting sector is slated to witness a p2% growth in its subscriber base over 20‐
‐
Drivers &
Drivers
LE
– Emerging middle class and rising Challenges
– High costs involved in digital
P
Challenges disposable income conversion
– Increase in television and radio
M
penetration – Shortage in set top boxes
A
– Complete digitization of TV services
S
– Increase in sale of LCD and LED TVs
 Penetration of mobile services in the market
Trends  Headend‐in‐the‐sky (HITS)
 A‐la‐carte channels in the offing
 Conversion of AIR to digital framework
Major Players
Competition BSNL Bharti Airtel DEN Networks
Hathway IndusInd Vodafone
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Market Overview
•Segments
•Drivers & Challenges
•Government Participation
•Trends
•Competition
•Strategic Recommendations
•Appendix
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 3

4. Recent Government mandate towards digitization earmarks
the sector for phenomenal growth SAMPLE
Digital Broadcasting Market – Overview
• Broadcasting industry in India is presently at a critical juncture with slurry of developments across the
sector including digital techniques and mobile
• India is at the verge of a revolution in a1 and a2 with broadcasters scouting for new content delivery
alternatives
• Conversion from analogue to digital broadcasting is supposed to be a potential growth driver for this sector
• Newer modes of content delivery including a3 and a4 have also emerged as latest additions to
broadcasting media
• The move from analogue to digital will also translate into shift from a5 to a6 along with complete
integration of equipment to their HD‐counterparts
Digital Broadcasting Subscriber Base – Growth
mn
U
a
a%
T
b
S
R
c P Q
0
2011 2012e 2013e 2014e 2015e 2016e
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 4

5. Digital Broadcasting – Platforms
•Digital Broadcasting cater to 5 platforms
•Each of the platforms require digital broadcasting as a means of technology for their transmission
•Inadvertently, individual segment’s growth gets translated into the overall sector’s growth
Digital Broadcasting
Digital Cable
IPTV Digital Radio
TV
DTH Mobile TV
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 5

6. Drivers & Challenges – Summary
Drivers Challenges
Emerging middle class and rising High costs involved in digital
disposable income conversion
Increase in television and radio Shortage of set top boxes
penetration
Complete digitization of TV services
Increase in sale of LCD and LED TVs
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 6

7. Government Participation – Summary
TRAI’s Regulation within the
sector
Initiatives
Cable TV Network
FDI Ceiling
Amendment Bill 2011
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 7

8. Trends – Summary
Conversion of AIR to digital Penetration of mobile services in
framework the market
Key
Trends
A‐la‐carte channels in the offing Headend‐in‐the‐sky
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 8

9. Public: Domestic Company – Company 1 (1/3)
Company Information
SAMPLE
Offices and Centres – India
Clace 1, Country 1
Corporate Address
Tel No. +123456
Place
Fax No. +123456
Website http://www.abc.in/
Year of Incorporation 19‐‐
Ticker Symbol ‐‐
Stock Exchange ‐‐
Products and Services
Category Products/Services
E1 C1 Key People
Name Designation
P1 D1
P2 D2
P3 D3
P4 D4
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 9

10. Public: Domestic Company – Company 1 (2/3)
Financial Snapshot Key Ratios
y‐o‐y change
Particulars 2010 2009 2008
Total Income Profit (2010‐09)
Total Income
LE
INR mn INR mn Profitability Ratios
Profit / Loss
1,000 D 300 Operating Margin 2.43 ‐17.62% ‐20.05% ‐20.13%
MP
C Net Margin ‐27.19 ‐35.73% ‐8.53% ‐18.97%
A B 200 Profit Before Tax Margin
SA
‐7.80 ‐20.89% ‐13.08% ‐29.53%
500
100 Return on Equity ‐6.36 ‐11.57% ‐5.21% ‐12.90%
Return on Capital Employed 3.13 ‐4.70% ‐7.83% ‐8.50%
0 0 Return on Working Capital 20.26 ‐38.59% ‐58.85% ‐81.68%
20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets ‐5.46 ‐8.31% ‐2.85% ‐6.65%
Financial Summary Return on Fixed Assets ‐13.41 ‐18.06% ‐4.65% ‐10.94%
Cost Ratios
• The company incurred a net profit of INR ‐‐ mn in FY 2011, as Operating costs (% of Sales) ‐1.84 76.53% 78.37% 94.47%
compared to net profit of INR ‐‐ mn in FY 20‐‐
Administration costs (% of Sales) ‐0.98 27.85% 28.83% 17.15%
• The company reported total Income of INR ‐‐ mn in FY 20‐‐,
registering an increase of p1% over FY 20‐‐ Interest costs (% of Sales) 0.38 ‐3.60% ‐3.97% ‐4.02%
Liquidity Ratios
• The company earned an operating margin of p2% in FY 20‐‐ a
Current Ratio 101.64% 2.69 1.34 1.48
decrease of ‐‐ percentage points over FY 20‐‐
Cash Ratio ‐19.10% 0.15 0.19 0.36
• The company reported debt to equity ratio of ‐‐ in FY 20‐‐, a Leverage Ratios
decrease of p3% over FY 20‐‐ Debt to Equity Ratio ‐52.58% 0.39 0.83 0.94
Debt to Capital Ratio
Financial Summary ‐50.90% 0.18 0.36 0.38
Interest Coverage Ratio ‐10.98% 5.10 5.73 5.29
Indicators Value (dd/mm/yyyy) Efficiency Ratios
Market Capitalization (INR) A Fixed Asset Turnover 1.13% 0.49 0.48 0.55
Total Enterprise Value (INR) Asset Turnover ‐24.09% 0.22 0.29 0.33
B Current Asset Turnover ‐57.29% 0.65 1.53 1.32
EPS (INR) C Working Capital Turnover ‐82.92% 1.04 6.07 4.07
PE Ratio (Absolute) D Capital Employed Turnover ‐42.15% 0.31 0.54 0.64
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 10

11. Public: Domestic Company – Company 1 (3/3)
Key Business Segments Key Geographic Segments
S1 S2 S3 Country 1
100% 100%
p8%
50% p2% p5% 50% p9%
p4% p7% p6%
0% p1% p3% 0%
2010
2008 2009 2010
Key Information
E
Description Details
P L
• B1 provides b2 and voice over b3 services, and engages in the manufacture and sale of
Overview
Extended Product SA M
optic fiber cables as well
• It provides b4 services under the ‘b5’ brand name in Delhi and Mumbai
• B6, b7, b8, b9, b10
Portfolio
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 11

12. Private: Domestic Company – Company 1 (1/3)
Company Information
SAMPLE
Offices and Centres – India
Registered Address Place 1, Country 1
Tel No. +123456
Fax No. +123456
Place
Website http://www.abc.com/
Year of
19‐‐
Incorporation
Products and Services
Registered
Category Products/Services
Address
E2 P1 Key People
Name Designation
P5 D5
P6 D6
P7 D7
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 12

13. Private: Domestic Company – Company 1 (2/3)
Financial Snapshot Key Ratios
y‐o‐y change
Total Income Profit Particulars 2010 2009 2008 2007
Total Income (2010‐09)
INR mn INR mn Profitability Ratios
Profit / Loss Y
LE
1,000 100 Operating Margin 69.15 73.01% 3.86% 6.05% ‐2.24%
80
Net Margin 2.34 11.49% 9.15% 11.18% 34.54%
800
P
Profit Before Tax Margin 4.65 12.67% 8.02% 12.89% 34.67%
X 60 Return on Equity 5.87 13.91% 8.04% 8.79% 34.57%
600
M
40 Return on Capital Employed 105.60 108.74% 3.14% 5.45% ‐2.97%
400 Return on Working Capital 55.91 77.81% 21.90% 43.72% 374.18%
A
20
Return on Assets 5.11 10.68% 5.57% 7.67% 34.37%
S
200 0 Return on Fixed Assets 9.21 23.38% 14.17% 32.94% 125.87%
0 ‐20 Cost Ratios
20‐‐ 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales) ‐77.48 18.41% 95.89% 93.45% 103.67%
Administration costs (% of
N.A. N.A. N.A. N.A. N.A.
Financial Summary Sales)
Interest costs (% of Sales) 1.16 3.07% 1.91% 0.90% 3.12%
• Company incurred a net profit of INR ‐‐ mn in FY 20‐‐, as Liquidity Ratios
compared to net profit of INR ‐‐ mn in FY 20‐‐ Current Ratio ‐32.18% 1.37 2.01 1.74 1.37
Cash Ratio 8.32% 0.43 0.40 0.34 0.47
• It reported total Income of INR ‐‐ mn in FY 20‐‐, Leverage Ratios
registering an increase of r1% over FY 20‐‐ Debt to Equity Ratio ‐31.93% 0.30 0.44 0.13 0.00
Debt to Capital Ratio ‐24.53% 0.23 0.31 0.11 0.00
• Earned an operating margin of r2% per cent in FY 20‐‐ an
Interest Coverage Ratio 1136.40% 26.61 2.15 7.25 ‐1.18
increase of ‐‐ percentage points over FY 20‐‐
Efficiency Ratios
• The company reported debt to equity ratio of ‐‐ in FY 20‐‐ Fixed Asset Turnover 25.00% 1.82 1.46 2.72 2.23
, a decrease of r3% over FY 20‐‐ Asset Turnover 45.34% 0.83 0.57 0.63 0.61
Current Asset Turnover 43.22% 1.62 1.13 1.53 1.80
Working Capital Turnover 169.30% 6.06 2.25 3.61 6.63
Capital Employed Turnover 31.08% 1.08 0.83 0.73 0.61
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 13

14. Private: Domestic Company – Company 1 (3/3)
Key Recent Developments
Description News
• Operates as a subsidiary of ‐‐ and is one of the largest multi‐system operator in the
E
country
PL
Overview • Has an ‐ mn subscribers across ‐‐ cities and has ‐‐ channels in its digital offering
• Also has a c1 across India to cover their service locations
Infrastructure SA M
• Has ‐ digital headends in Mumbai and Delhi with a capacity to broadcast ‐‐ channels each
• Boasts of a broadband network of ‐‐ capacity with c2
• Has an extremely high c3 and low c4 or c5 as well as two way interactivity with c5
Future Outlook • Has plans to introduce value added services namely c6, c7, c8, c9, c10
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 14

15. Thank you for the attention
The Digital Broadcasting Market in India report is part of Netscribes’ Media and Entertainment Industry Series.
For more detailed information or customized research requirements please contact:
Phone: +91 33 4064 6214
E‐Mail: sales@netscribes.com
About Netscribes
Netscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth
objectives.
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report,
Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This
document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
DIGITAL BROADCASTING MARKET IN INDIA 2012.PPT 15