Extraordinary Together Zee Entertainment 360 0 Entertainment Content Company
Presentation Flow Golden Age for Content Creators Domestic Broadcast Digital A to ZEE of Movies & Music Content Leadership International Live Events Consistent Financial Performance 2 2
Content consumption is at an inflection point… CY14 CY17 CY21e TV households 183 224 168 (mn) 3G+4G subs 83 363 760 (mn) Multiplex 2,600 3,500 2,000 screens Private radio stations 243 324 400 Source: TRAI, FICCI M&E report, Industry estimates Content availability has increased across all mediums and is expected to continue to grow 3 3
…with multiple levers for growth acceleration Social integration, gamification Increasing device penetration Technological innovations Anytime, Anywhere Opportunity Engagement to see Ability to Content pay choice Rising discretionary spends Across languages, genres and formats Customized packages Better quality content Growth drivers in place to boost India’s low per capita entertainment consumption 4 4
M&E is witnessing an all-round growth in India M&E industry revenue break-up Television Others CY20e 18% Category CY12-17 CAGR CY17-20e CAGR CY17 15% Television 12.3% 9.3% 10% CY12 Print 6.2% 6.8% 42% Movies 11% 15% 10% 45% & Music 45% Digital 40.5% 23.5% 3% 8% Movies & Music 6.6% 7.5% 27% Others* 22.0% 18.2% 11% Digital 21% M&E industry 12.4% 11.3% 18% Print Source: FICCI-EY M&E Report 2018; FICCI-KPMG M&E Report 2017 * - Others include Radio, Animation, VFX, Gaming and OOH Television to remain the largest medium while Digital will continue to lead the growth 5 5
The big debate – TV or Digital? 6 6
Indian market is different on two key parameters Low TV ARPUs and wired broadband penetration make TV the preferred medium for content consumption Pay TV ARPU (USD per month) Wired broadband penetration (% of total HHs) 84.1% 88 81.8% 78.7% 75.2% 63.5% 48 31.3% 31 32 22 12 6.4% 6 3 India China Nigeria Japan Singapore Brazil UK US India Thailand China Japan Australia US UK Source: BofAML Research Report Source: OFCOM Market Report 2016 Wired broadband is a prerequisite for digital to become the mainstay for content consumption Mobile broadband is driving the digital content consumption in India Pay TV in India offers unlimited content (200+ channels) at ~3 USD per month 7
TV and Digital are growing in tandem Since 4G roll-out, TV viewership has grown by 35% and video consumption on mobile has become substantial Average daily time spent on video (min) Average weekly impressions on TV (bn) Television Digital 28.7 26.2 31 27 21.2 227 225 220 1QFY17 1QFY18 1QFY19 2QFY17 3QFY18 1QFY19 Source: BARC data Time spent on TV based on BARC data representing universe of 836mn individuals; Time spent on mobile based on data of a leading telco; Total 3G+4G subs ~400mn Mobile data consumption has grown by ~17x over the past two years, primarily driven by video Television viewership has seen healthy growth across age groups over the last two years 8 8
Digital - A new growth opportunity Content for >95% single TV On the go, audience not homes on demand available on TV Mobile becomes More viewership New viewers second screen 9
Incumbents to have an edge in the OTT space Collaborative process for content creation IP rights Broadcasters bear the retained by the risk of the project broadcasters Independent producers ~2,000 hours of with limited risk appetite original content produced every week across 10+ languages Broadcasters retain the IP rights of their content; no market for content aggregation Building a sizeable library for the multi-lingual Indian market is a long-drawn process Original content created for TV seamlessly moves to broadcasters’ OTT for on -demand viewing 10 10
TV + Digital to contribute over 60% of ad spends Digital expected to grow at ~2x of M&E ad growth, TV to maintain share Ad spends (INR bn) Share of ad revenue Others Television Digital Radio 572 4% 6% CY20e 4%6% 450 204 CY17 382 146 332 Television 115 29% 33% Print 89 40% 40% 368 304 267 243 17% 22% CY16 CY17 CY18e CY20e Digital Source: FICCI EY M&E Report 2018 Source: FICCI EY M&E Report 2018 New Double-digit Increasing Organized categories Digital nominal GDP discretionary sector like BFSI, bringing new growth spends gaining share Pharma, advertisers Travel Multiple drivers for ad spend growth 11 11
Drivers in place for subscription revenue growth Cable digitization TV subscription growth to continue, digital a new opportunity Subscription revenues (INR bn) 145 HD 20 penetration 115 103 Television Growth Drivers Digital 125 109 99 ARPU growth CY17 CY18e CY20e Source: FICCI EY M&E Report 2018, TV subscription revenue represents Broadcasters’ share SVOD opportunity TV ARPU growth can accelerate with the implementation of the new Tariff order SVOD will ramp up as a substantial revenue stream as digital exclusive content catalogue builds-up 12 12
A to ZEE of Content Leadership 13 13
ZEEL has evolved into a 360 o entertainment content company Launch of ZEE5 , Zee TV Launch of Zee Entry into sports Begins expansion revamped OTT launched, India’s Music Company , broadcasting with into Indian regional platform with first private the music acquisition of Ten market with unrivalled entertainment publishing label Sports Marathi content channel catalogue 1992 1995 1999 2008 2010 2012 2014 2017 2018 India’s first Hindi Launch of Zee Entered Live movie channel Regional portfolio Studios , the business, exit launched; nearly complete movie from sports International with Tamil launch production broadcasting expansion begins company with launch in UK With many firsts to its credits, ZEEL is the biggest homegrown entertainment network 14 14
Content for all Scripted fiction content in 8 languages Homegrown reality shows Soap operas, Weekend family differentiated content entertainment in each language Primary Target: Family Primary Target: 25+ viewing women Digital original content in 6 languages Movie and music catalogue across languages One of the biggest Edgy, finite-format movie libraries and content music catalogues Primary Target: Male, Primary Target: All age- youth (18-34) groups Live entertainment across genres International content from around the world Curated global content Theatre plays, music Primary Target: events etc. Premium audience Primary Target: Youth ZEEL offers compelling content to audience across diverse demographics 15 15
Strong position in the M&E eco-system ZEEL Business Overview Domestic Broadcast ❖ ~500 hours of content every week Strong across 8 languages content ❖ 25 years of institutional learnings creation Digital expertise and consumer insights ❖ Long-standing relationship with Strong talent – writers, directors, actors partnerships across the ❖ Strong partnership with value chain International distributors and advertisers ❖ Content created by one business monetized by others Synergy ❖ Content creation and marketing synergy with presence across Movies & Music verticals Live Events Content Creation Content Flow 16 16
Domestic Broadcast 17 17
Pan-India Network - 37 channels, 9 languages Hindi Movie Hindi General Cluster Entertainment Regional Movie Regional Cluster Entertainment Niche Channels 18 18
Continuously improving viewership India’s #1 entertainment network gaining market share across markets Network share across broadcasters, 2QFY19 ZEEL has consistently increased its viewership share 19.2% ZEEL, 19.9% Others, 17.1% 16.4% 17.7% 30.1% 13.1% 14.1% 14.9% 11.6% Star, 18.4% Viacom, 10.2% Sun, 10.8% CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 Sony, 10.6% (YTD) Data as per TAM upto March 2015 and as per BARC from April 2015 onwards Network share excludes News and Sports channels ZEEL has established a strong market position across Hindi entertainment, Regional and Movies 19 19
Digital 20 20
ZEE5 – the ultimate digital entertainment destination Content in 12 languages India - a multi-lingual country User interface in Limited familiarity with English multiple Indian languages Low online payment penetration AVOD + SVOD revenue model ZEE5’s content and technology has been customized for the Indian consumer 21 21
ZEE5’s unrivalled content catalogue ZEE5 Originals ➢ Originals in 6 languages ➢ New shows every month ➢ Captivating shows Movies ➢ 3500+ movies ➢ 12 languages ➢ 150+ digital premieres International Content ➢ Shows from Turkey, Brazil, Pakistan, Korea etc. ➢ Dubbed/sub-titled in multiple Indian languages Premium Content ➢ Curated content from international studios ➢ Plays from Zee Theatre ➢ Health & Lifestyle content Live, catch-up & more ➢ Kids entertainment & more LIVE ➢ 90+ live channels ➢ Catch-up content ➢ Best of ZEEL library shows ZEE5’s 100,000+ hours of content caters to the varied entertainment needs of Indian audience 22 22
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