New Page 22
Media, when entwined with the entertainment component represents an effective facet ofconsumer psychology in India. Technology has played a key role in influencing theentertainment industry, byredefining its products, cost structure and distribution.
The Indian Media and Entertainment (M&E) industry stood at US$ 12.9 billion in 2009registering a 1.4 per cent growth over last year, and over the next five years, theindustry is projected to grow at a compound annual growth rate (CAGR) of 13 per cent toreach the size of US$ 24.04 billion by 2014, according to a joint report by KPMG and anindustry chamber.
According to the figures released by an industry chamber in March 2010, the Broadcastand Television (TV) sector comprised over 43 per cent of the overall M&E sectorwherein the total size of the television sector accounted for US$ 5.7 billion. Thebroadcast sector is on a strong growth path and the prospects for advertisementexpenditure is on a rise especially in the television sector.
A report by research firm Media Partners Asia (MPA) stated that India is poised tobecome the world's largest direct-to-home (DTH) satellite pay TV market with 36.1 millionsubscribers by 2012, overtaking the US. Furthermore, in its report titled 'Asia PacificPay-TV and Broadband Markets 2010', MPA said India's DTH subscriber base will increasefrom 17 million in 2009 to 45 million by 2014 and 58 million by 2020.
The Government has initiated the following measures:
• The government has allotted US$ 50.13 million in the current Five-Year Plan(2007-2012) for various development projects for the film industry. The funds will beutilised to set up a centre for excellence in animation, gaming and visual effects
• To offer better audio quality and sharper picture to millions of its viewers,public broadcaster Doordarshan plans to go completely digital by 2017
According to the Consolidated Foreign Direct Investment (FDI) Policy document releasedby the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce andIndustry, Government of India-
• Foreign investment, including FDI, NRI and PIO investments and portfolioinvestments are permitted up to 49 per cent for Direct to Home under Government route.Within the limit of 49 per cent, FDI will not exceed 20 per cent. This will be subject tosuch guidelines/terms and conditions, as specified from time to time, by the Ministry ofInformation and Broadcasting (l&B)
THE FINANCIAL YEAR 2009-10
AN INSIGHT INTO THE YEAR GONE BY FOR OUR ESTEEMED SHAREHOLDERS
2009-2010, a year of sustenance, expansion, of holding onto our basicideologies, giving a new vista to our work culture beliefs, creating opportunities forgrowth, with a view to increasing both our top-line and bottom-line
Having crossed a total turnover of Rs 47,94,57.248 79, over the Financial year 2009-10,with a spread of four series being aired over three of the major GEC Channels, yourcompany further consolidated its positioning amongst the vast arena of production houses,making their presence felt, in the ambit of content providers, vying with each other forthe top 10 positions
Jaane Kya Baat Hui on Colors and Shubh Kadam on Sahara, keptthe first half of your financial year going. Jaane Pehchane Se Ye Ajnabbi,being currently telecast on Star One on the coveted 8 30-9 p.m. prime time slot, made itspresence first felt in the second half of the Financial Year 2009-2010. Runningsuccessfully while we go to print, the series has to date completed 209 episodes oftelecast. And finally the icing on the cake - Dill Mill Gayye, a series thathas surpassed expectations by crossing 661 episodes of telecast to date, has given yourcompany a new vista, a new vision and most importantly a new dimension. Today Cinevistaashas established itself, beyond doubt, as the undisputed leader in this form of narration.In more ways than one, we've created history on Star One
In today's fast changing and widely viewed television spectrum, spread across thelength and breadth of this vast nation, it is important to channelize your thoughts andcontent to the multi-faceted, mutii-linguistic, multi-cultural, multi-religious andmulti-spiritual abode, that is India. Towards that end, your company has set up a research& development division, in the financial year 2009-2010, for the very first time.
The company employed professionals who not only had a creative genius, coupled with theability to forsee and predict the changing trends, but also had the right contacts tospearhead those changes, in the times ahead. Towards this end, your company has employedan amount close to 6 million rupees, in this financial year. In perspective, we truly feelthat this money has been well employed, for we've on table concepts and creative's whichwill provide the much needed breakthrough and stimulus for growth, expansion andpositioning.
One of the first benefits of the above, have been your company's successful foray intothe South, in this financial year, (2010-2011). Two of your company's shows are currentlyon air, on the famed Udaya Channel, a part of the Sun Tv Network group of Channels,beaming over Chennai, Karnakata, Andhra Pradesh & Kerala. The 'Udaya Tv' network whichbeams over Karnataka, is the leading Kannada Channel, based in the green city ofBengaluru. It is a matter great pride for your company that in a short span of time, we'vebeen able to successfully put together two shows, one in the afternoon band and the otheron prime time and that too, a mythological embellished with splendid sets, visualrichness, great props and properties, costumes & jewellery and most importantlyfitting content and apt casting to fit the characters, hand-in-glove.
The results of your company's sincere efforts, hard work, patience, perseverance andpassion for good work, has already started bearing results in the south, Seethe RamKatha Hridayam, beaming on prime time between 7-7.30 p.m. registered a T.R.R of'5.74' in just its 5th week of telecast. Very creditable we must say,especially when you realize that the top rated show across any channel beaming overKarnataka, does not register a T.R.P. of beyond 7.5 in the +15 category. And mind you,some of these shows, have been on air, for several years now.
The other show Mane Magalu kickstarting the afternoon band at 1.30 p.m. isscheduled to complete its 100th episode of telecast on the 10th ofAugust 2010. A small but definite feat achieved by your company, making its first presencefelt, amongst the vast milieu of producers thronging the channels of Karnataka.
Any new venture requires and necessitates costs, investments and initial start upexpenses. Our Southern foray also necessitated the same. Having set the ball roiling inSeptember 2009, we tasted success in December 2009, when we made our second presentationto the Sun Tv Group of Channels, in Chennai. Work on the two projects commencedimmediately with the first project going on the air on the 5th of April 2010and the second on the 28th of June 2010. All in all, a rewarding andenlightening experience.
The year 2009-10, also saw a lot of infrastructure expenses, much needed to giveimpetus to and augment the company's plans for the future. Your company's three shootingfloors were centrally air conditioned to provide better shooting facilities and state ofthe art amenities. The Bengaluru office set up equipment facilities besides the creationof editing and dubbing suites also required and necessitated substantial investments to bemade, all of which have been duly met with, by your company.
During the Financial year 2009-2010, your company paid out as interest a sum ofRs.25788955 on its borrowings, claimed Rs. 16692054 as depreciation costs, paid Rs.263411as bank related charges and registered a net profit of Rs.9728093, before tax. As we saygood-bye to the year 2009-2010, we promise that your company shall strive and endevour todo much-much better this financial year. We've yet miles to walk and many dreams toachieve and fulfill: Lets all collectively pray and wish that your company achieves them,for all of us together.