MAM

Expected economic recovery to benefit media and entertainment industry: Ind-Ra report

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2014/02/12/ratings.jpg?itok=4YyZ8wuG

MUMBAI: Future seems to be optimistic for the Indian media and entertainment sector, at least that is what the India Ratings & Research (Ind-Ra) report says. The agency has revised the outlook on the media and entertainment sector for FY15 and it expects improvements in advertisement spending (ad spending) by corporates with a gradual economic recovery, eventually making the industry stable from negative.

The upcoming elections will also contribute to the increase in ad-spending in the Q4-FY14 and Q1-FY15. The agency maintains a “stable outlook” for most of Ind-Ra rated entities for FY15.





High newsprint prices due to currency movements along with limited capacity to pass on cost increases to end-consumers could continue to impact the profitability of print media players dependent on imported newsprint in FY15. However, some comfort is drawn from the expected improvement in ad revenue. 





Increasing digitisation of cable TV distribution in FY15 will increase subscription revenue for broadcasters and multi system operators (MSO), which would positively impact their business profile with reduced dependence on cyclical ad revenue. However, the agency believes timely completion of the digitisation regime remains the key as the capex undertaken by cable operators and direct-to-home operators towards distribution of set-top boxes will be monetised fully once the digitisation drive is complete. 



Telecom Regulatory Authority of India’s (TRAI) proposal for increasing foreign direct investment limits in the broadcasting sector, if implemented, could lead to increased investor interest in the sector. Investor interest would also be boosted by the digitisation impact. 





Ind-Ra expects print and TV media will continue to dominate the industry, commanding a major chunk of the ad spend over the medium term. However, online ad spend would be the fastest growing segment on the back of increasing penetration of Internet and Internet-enabled hand-held devices coupled with changing lifestyles.  

 

Ind-Ra does not envisage a positive outlook for the industry, given the industry’s continued strong dependence on ad revenue and only a moderate economic recovery expected in FY15. However, timely implementation of digitisation coupled with deleveraging of MSOs could result in a positive outlook as also a fall in newsprint prices. 

 



Lower economic growth unable to give a boost to corporate ad spending could result in a negative outlook. Furthermore, an increase in newsprint cost further straining profitability and impacting credit profiles could also result in a negative outlook.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/25/kalra.jpg?itok=pIciUSLo
Raman Kalra joins PwC India as entertainment & media sector advisory leader

Raman Kalra has been hired as partner, PwC India - Entertainment & Media Sector Advisory Leader (and Emerging Technologies Leader). He is responsible for strategy through execution as: Entertainment & Media Sector Advisory Leader & Emerging Technologies Leader responsible for...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/25/joshi.jpg?itok=XRZODjyO
McCann bags Sony India’s creative mandate

Sony India has appointed McCann World Group as its new creative agency in India after an extensive selection process.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/25/vikas.jpg?itok=bYp384lq
Republic appoints Laqshya media group as the OOH Agency

Laqshya Media group has announced its partnership with Republic as its OOH Agency on Record (AOR).

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/25/work.jpg?itok=nnyLl-gD
UCNews' 'Spirit of Work' campaign with Tandon, Bedi & Khanna

Celebrating International Workers’ Day on May 1, UC News, a news and content aggregation platform from Alibaba Mobile Business Group, has kicked off its ‘The Spirit of Work’ campaign.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/25/Himalaya_0.jpg?itok=4no501uF
Himalaya's 'Chennai Ponnu' captures her essence in peppy video

MUMBAI: The Himalaya Drug Company, India’s leading wellness brand launched the “Chennai Ponnu” (Chennai Girl) campaign for its flagship product Himalaya Purifying Neem Face Wash. The campaign aims to celebrate the spirit of the Chennai girl and captures her essence in a fun and peppy music video....

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/25/BOOST.jpg?itok=E4boT_rw
A Boost to #PlayABiggerGame with Virat

MUMBAI: Boost, one of GSK’s leading brands in the Health Food Drinks category, has launched a three-part digital video campaign with the youth icon Virat Kohli. With this campaign, the brand intends to take its theme of ‘Play A Bigger Game’ beyond an inspiring message to actually providing kids...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/25/sachin.jpg?itok=99Z9TKfd
Zeven and Rob's tribute for master blaster

MUMBAI: A creative genius that awes his audience with every piece of work, Rob has created a brand new 'WOW' video in association with Zeven, a multi-dimensional sportswear brand for the God of cricket Sachin Tendulkar, on his 44th birthday.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/25/WROGN.jpg?itok=ERl10ls9
Wrogn tie-up with Royal Challengers

MUMBAI: India's most promising celebrity fashion and lifestyle brand Wrogn is associated with Royal Challengers Bangalore (RCB) as the official lifestyle clothing partner for the 10th edition of the Indian Premier League. Off field the RCB players will be seen in Wrogn merchandise and while on...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/04/24/Kangana.jpg?itok=j-stJGGC
Kangana walks ramp for Birla's new Liva Creme

MUMBAI: Liva Crème, the new age fabric from the Aditya Birla Group, has been launched by Aditya Birla Group chairman Kumar Mangalam Birla. Birla stated, “The ecosystem of our LAPF partners has resulted in also placing India on the global map. We are now a preferred sourcing destination of viscose...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories