Specials

Media sector stitches 45 private equity deals in 2007



















MUMBAI: It has been a landmark year for the media and entertainment sector. A spate of 45 private equity deals have dotted the landscape in 2007 while one company has raised money through an initial public offering.


"It signals the coming of age of not only the media sector but also the companies. Indian promoters have taken their outfits to a scale where even Walt Disney and Time Warner have gone ahead to do equity deals with them," said ICICI Securities SVP Ravi Sardana.


The market cap of the media companies has touched $15 billion. "The media and entertainment sector, which is at Rs 500 billion, is expected to double in the next 4-5 years. This is something which is exciting investors," said Sardana while addressing a session at Ficci-Frames 2008 on "Raising Capital: Showbiz attracts the moolah."



The business has also become scalable with the opening up of multiple platforms. "There are lots of markets in India which are still under penetrated. Media companies can expand their business by entering into new geographies," Sardana said.


The missing segments in the piece are movie companies, animation and new platforms like IPTV. The sector also needs to consolidate and make structural changes for making it more attractive for equity capital infusion, Sardana said.



The challenges are shortage of talent and scaling up. "In India largest production houses do less than four movies a year. In Hollywood, the big six studios account for 90 per cent of the US and Canada box office," said Sardana.

Expressing bullishness on the sector, Blackstone chairman Akhil Gupta said that 65 per cent of India‘s GDP is personal consumption while in China it is 45 per cent. "That is where the Indian story gets stronger. There is scope for growth in advertising revenues," Gupta who heads the private equity company in India said.

Banks have extended funding for film projects, though it is open only for producers who have a track record. Exim Bank has extended loans close to Rs 3 billion and has supported 11 production houses. "Our experience has been good. We have had NPA (non-performing asset) of just Rs 1 million," said Exim Bank chief general manager John Mathew.



New financing options are also possible including financing equipment, airtime sales, acquisition of library content and distribution and merchandising, said Amarchand Mangaldas managing partner Shardul Shroff.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/17/FICCI.jpg?itok=4EpczuIP
Furthering 'Brand India': Film & entertainment buyer-seller meet at Festival de Cannes

NEW DELHI: A buyer-seller meet is being held during the Festival de Cannes 2017 to provide a platform for the Indian media & entertainment industry to showcase its product and services, strength and capabilities and further the image of “Brand India.” The meet is being organised by the...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/20/Elisabetta-Romano_0.jpg?itok=iXTtEynO
Ericsson launching virtualised MediaFirst video processing

MUMBAI: Ericsson has created the foundation for all IP and cloud native delivery models with the launch of Ericsson MediaFirst Management Controller and Ericsson MediaFirst Encoding Live 8.1.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/20/John%20Wastcoat_0.jpg?itok=yOu6Koio
File transfer & global collaboration: Telstra & IBM Aspera team up

MUMBAI: IBM has announced that Telstra has selected IBM Aspera to deliver simple, fast and secure media file transfer capability for Telstra Global Media Network (GMN) over the internet powered by Aspera Files.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/11/Ed%20Chizhikov_0.jpg?itok=RblbrQcC
20 countries enter deals for 360 deg VR content with RT at MIPTV 2017

MOSCOW: RT, the global TV news network, has become a pioneer of 360-degree video format commercialisation by securing licensing agreements for VR content with organisations from across 20 countries. The deals followed an RT showcase in which it demonstrated expertise in integrating panoramic videos...

Specials Event Coverage Miptv
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/17/jiri%20%281%29_0.jpg?itok=fOcUftmf
Comprimato launches post-production video plug-in tools for proxy-free Adobe workflows

Comprimato, a leading provider of GPU accelerated storage compression and video transcoding solutions, has launched Comprimato UltraPix, a simple video plug-in for popular post-production tools. The first release brings proxy-free, auto-setup workflows for Ultra HD, VR and more on any hardware...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/11/Miptv-vr_0.jpg?itok=RhvAvyG4
Channel-defining drama, high-concept format & breakthrough VR drive global alliances at MIPTV 2017

CANNES: MIPTV 2017 provided plenty of drama for the thousands of delegates from over 100 countries in Cannes with a host of high-end projects being brought to market from around the world.

Specials Event Coverage Miptv
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/05/MIPDrama-Latam%20%281%29.jpg?itok=TnKDsvkJ
Globo's unreleased superseries featured at MIPDrama Latam

Globo’s unreleased superseries ‘The Days Were Like That’ was among the 10 productions featured at the first edition of MIPDrama Latam Screenings, held on 3 April -- day one of the 2017 MIPTV.

Specials Event Coverage Miptv
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/06/Rai%20Com%20%26%20Castalia_1.jpg?itok=G0CreVT8
Rai Com & Castalia deal will take All'Opera to LATAM

CANNES: All’Opera, the ambitious programme to bring the best Italian opera productions to cinema audiences all over the world, continues to broaden its footprint, with ink drying on a new theatrical distribution deal for Latin America signed by Rai Com with Castalia Communications at MIPTV. With...

Specials Event Coverage Miptv
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/06/gokel%20%281%29.jpg?itok=lTC8F1CT
Beta Film adds shows to its successful Spanish series slate

After the tremendous success of its Spanish slate of Velvet, Grand Hotel and Embassy, Beta Film is further extending its engagement in the Iberian series sector by boarding two new Atresmedia/Bambu-shows as international co-producer.

Specials Event Coverage Miptv

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories