2013: India Media and Entertainment Industry Update. The India media industry experienced rapid growth in 2013 and is forecast to continue its expansion in 2014.

1. East West India Media Industry
Update
Investment in the Indian Media Industry
continues strongly through 2013
East West Relations
Jan 29th 2014
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2. India’s middle class is driving the
media economy
 The ranks of India’s middle classes have grown to some 330 million
people
 Annual income of between USD 4,000 and USD 21,000
 India’s middle classes own over 40% of India’s mobile phones
 Within a decade they will be the dominant section of the Indian
population
 Catalyst for the media and entertainment sector’s rapid digitisation
enabling the industry to connect more easily with consumers
© East West Relations

3. India media economy highlights
During 2013 India’s media sector grew by approximately 78%
The forecasts for 2014 are astonishingly bullish
 Television revenue is expected to grow at 15-18%
 Print by 8-10%
 Digital is expected to race ahead by 30%
© East West Relations

4. Media headline stats
 Indian media industry revenues are expected to reach nearly USD
40 billion by 2016
 CAGR of about 17% from 2012 to 2016
 ecommerce has witnessed a 150% growth rate, increasing from
USD 3.8 billion in 2009 to USD 9.5 billion in 2012*
*Joint report by KPMG and the Indian Association for Mobile and Internet
© East West Relations

5. Room for huge growth
 Internet penetration in India is only 7%
 Behind the other BRIC countries at between 30-40%
 18-26 year olds are more tech savvy and spend more
time on the internet than any other media
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6. 2013 media deals of note
 Bertelsmann’s India investment fund leading a USD
12 million financing in IndiaProperty.com
 Flipkart, India’s answer to Amazon, raised USD 360
million in 2013 to take on eBay-backed Snapdeal
 Cashkaro, a coupons and cash-back site, raised USD
750k from a London-based angel investor.
© East West Relations

7. More media investment in 2013
 Myntra, India’s largest standalone fashion e-tailer has
raised some USD 75 million with talk of investment
from India’s fourth richest man, Wipro chief Azim
Premji.
 Zomato, the New Delhi-headquartered restaurant
discovery site, received investment of $37m from
Sequoia Capital
© East West Relations

8. 2013: M&A activity strong in digital
advertising
 IPG’s purchase of Interactive Avenues, India’s largest
independent digital agency
 Japan’s Dentsu India group took an 80% stake in
Webchutney
© East West Relations

9. 2013: More digital investment
 Publicis, the French communications giant, has also
continued its spending spree in India with the
acquisitions of Beehive Communications and Convonix
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10. 2013: More digital investment
 $25m PE investment, led by Warburg Pincus, in Quikr
 Providence Equity purchases 50% stake in Star CJ
Network
 GSO Capitals acquires Velti Plc
© East West Relations

11. 2013: Trends
 East West anticipates this trend to continue into 2014
with emphasis on capital investment as opposed to
secondary exits
 Focus will be on ecommerce and the mobile space
 However, also growing activity in the B2B sector
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