Four-S Fortnightly Mediatainment Track - Issue 1

Four-S Services, January 2012, Pages: 8

This issue covers 7th January - 20th January, 2012

Q3 results: Is Subscription the way forward?

The third quarter results have started to come out. After maintaining flattish growth for first two quarters, Zee's consolidated revenues declined in the third quarter. It was interesting to see that while the listed industry leader's ad revenues declined 10% YoY, subscription revenues grew over 16% in the quarter. Zee's management is shaky on ad revenues outlook and admits it would be challenging to have a single-digit growth in 2012. But they are very optimistic about the subscription revenues, especially with digitization implementation.

Dish TV continued its strong revenue growth achieving 31% YoY in Q3. However, it posted its 9th consecutive quarterly loss. It may also not meet its FY12 guidance of 3-3,5mn subscribers, expects to have 2.6mn subscribers instead. Dish had increased its set-top box price by 35% in November to address the steep rupee depreciation and resultant increase in costs. Watch out further how the story unfolds for the DTH players as Cable operators digitize. Den and Hathway have come together to launch a media campaign to meet the 30th June digitization deadline for metro cities. In the promotional offer, their set-top boxes are available at Rs. 799 only, almost half of Dish TV's price.

With ad-pie shrinking due to slowdown, subscription seems to be way forward. With digitization implementation, subscription's share in broadcaster's revenue model is set to increase in the future.

PRIVATE EQUITY

MERGERS & ACQUISITIONS

CORPORATE DEVELOPMENTS

NEWS UPDATE

STOCK MARKET UPDATE

FINANCIAL BENCHMARKING

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