Contents
Driven by domestic demand and digitization ................................................................. 3
Television in India 3
Beneficiary of rising household income ......................................................................... 4
Advertising revenue 4
Television compared to other segments of media 4
Analysis of DAVP advertising rates by channel 7
Bottom up analysis of advertising spend 8
Global experience – shift to subscription ..................................................................... 12
Ad spending has declined during recessionary times 12
Digitization will drive subscription growth .................................................................... 14
Increase in television households 14
Forward integration across the media value chain 17
Cost rationalization ...................................................................................................... 21
Regulation.................................................................................................................... 23
High taxes a burden for the DTH industry 23
Sector view and company recommendations .............................................................. 27
SUN TV 27
ZEE Entertainment 27
Dish TV 27
Television18 27
Appendices.................................................................................................................. 30
1. Devil’s advocate: Risks to our investment case 30
2. Glossary 31
Company updates........................................................................................................ 33
Sun TV Network – BUY; CP: INR307.10; TP: INR350.00 34
Zee Entertainment Enterprises – BUY; CP: INR224.85; TP: INR260.00 37
Dish TV India – REDUCE; CP: INR44.00; TP: INR35.00 40
Television Eighteen India – HOLD; CP: INR96.65; TP: INR101.00 43