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This is a documentation is about company analysis of SUN tv.
SIMSREE PRE-INDUCTION ASSIGNMENT Company Analysis SIMSREE 2012-14 COMPANY FOR ANALYSIS- SUN T.V Industry Analysis : The television industry in India is a huge industry with a variety of programmes on various channels in various languages showing the cultural diversity of India and thus satisfying the entertainment quotient of the people of the country. TV soaps are extremely popular and it has produced a number of celebrities some of them even attaining national fame. A survey shows that almost half a million households in India have a television. As of 2010, the country has a collection of free and subscription services over a variety of distribution media, through which there are over 515 channels of which 150 are pay channels. According to Pioneer Investcorp, the Indian cable industry is worth 270 billion (US$4.89 billion) and is the third largest in the world after China and United States The number of TV homes in India grew from 120 million in 2007 to 148 million in 2011. Cable reaches 94 million homes with 88 million analog connections and 6 million digital ones, while DTH has commanded 41 million subscribers. The TV industry being one of the fastest growing industries in the word and with the advent of new technology and new and extensive use by the corporate has provided both opportunities and challenges to this industry. Television Industry with increased hours of mass entertainment programming during prime time and better coverage of popular events has seen an explosive growth in consumer mind share. Its status as the preferred mode of entertainment of the people is obvious from the fact that it now contributes more than 60percent of the entertainment industry's revenues. Television the major contributor to the overall industry revenue is estimated to grow at a stable rate over the next five years resulting in increased viewership having wider range of channels to select from. The television industry is now ready to advance to the next stage of its evolution, grasp the opportunities presented by the digital age and completely change the home entertainment landscape. Over the next few years, cable and satellite, along with emerging delivery platforms like DTH and IP-TV are expected to revolutionize the industry and it is expected that digital television connectivity would reach every nook and corner of India. Mobile TV where picture can be relayed to mobile phones is in the early stage of development and hasgot a tremendous future.
PEST Analysis of TV industry
PEST Analysis refers to the influence of Political, Economic, Social and Technological factors affecting the Television industry. Poltical: The ministry of Information and Broadcasting headed by Smt.Ambika Soni has an important share in the regulations and rules by which our TV industry works. The content
regulation as well as other guidelines is set up by this ministry. Also the government also knows that it is one of the fastest growing industry. In 1992, the Indian government led by P.V. Narsimharao started a series of economic reforms including the liberalization of the broadcasting industry, opening it up to cable television. Similarly now it has been taking steps to make it mandatory to install DTH connections in all homes so there is some regulation over the pricing policy and a control over piracy. Economic: The economic scenario with respect to the tv industry is the most encouraging with newer channels and programmes being introduced every year and thus making it more lucrative. The economy of india and the various increased interest of Foreign investments in the form of FII’s is having its effect on this industry and a definitely a positive effect with more and more players entering the industry and thus making it economically viable industry. Social: The social impact which the TV industry has on the people is tremendous. Not only are the various soaps played on various entertainment channels giving out social messages having an impact on the society but the various other channels including News channels, Information channels are showing its effects on the industry. The TV industry is also evolving based on the needs of the society and thus the society is influencing the industry in some or the other way. Technology : The ever growing technology with the introduction of Satellite channels, the use of cable transmission is reducing with many households opting for DTH connections over cable. Also the advent of High Defination channels, it has definitely led to great technological advancements in this industry. Also Internet Protocal Television launched only in some cities such as Mumbai around 2006-2007 by MTNL and BSNL and later expanded to many urban areas and is still expanding. Private Telecommunications Companies Airtel and Reliance Telecommunications also started its IPTV services in Cities like New Delhi and Bangalore At present (2009/2010) IPTV in India is hardly making any impact in the market. But IPTV and Internet TV content in India are expected to expand. Screen Digest estimates broadband penetration of TV households to increase from 4.2 percent in 2009 to 13.4 percent in 2013.
Growth of Indian TV Industry Terrestrial television in India started with the experimental telecast starting in Delhi on 15 September 1959 with a small transmitter and a makeshift studio. The regular daily transmission started in 1965 as a part of All India Radio. The Television service was extended to Bombay and Amritsar in 1972. Up until 1975, only seven Indian cities had a television service and Doordarshan remained the sole provider of television in India. Television services were separated from radio in 1976. National telecasts were introduced in 1982. In the same year, colour TV was introduced in the Indian market. Indian small screen programming started off in the early 1980s. At that time there was only one national channel Doordarshan, which was government owned. The Ramayana and Mahabharta were the first major television series
produced. This serial notched up the world record in viewership numbers for a single program. By the late 1980s more and more people started to own television sets. Though there was a single channel, television programming had reached saturation. Hence the government opened up another channel which had part national programming and part regional. This channel was known as DD 2 later DD Metro. Both channels were broadcast terrestrially. PAS-1 and PAS-4 are satellites whose transponders help in the telecasting of DD programmes in half the regions of the world. An international channel called DD International was started in 1995 and it telecasts programmes for 19 hours a day to foreign countries-via PAS-4 to Europe,Asia and Africa, and via PAS-1 to North America. TV Programs: The 80s was the era of Doordarshan with shows like Hum Log (1984), Buniyaad (1986-87) and comedy shows like Yeh Jo Hai Zindagi (1984), Mythological dramas like Ramayan (1987-88) and Mahabharat (1989-90) glued millions to Doordarshan and later on Bharat Ek Khoj, The Sword of Tipu Sultan and Chandrakanta. Hindi film songs based programs like Chitrahaar, Rangoli, Superhit Muqabla crime thrillers like Karamchand, Byomkesh Bakshi. Shows targeted at children include Dada Dadi ki Kahaniyan, Vikram Betal, Malgudi Days, Tenali Rama. In 1992, the Indian government led by P.V Narsimha Rao started a series of economic reforms including the liberalization of the broadcasting industry, opening it up to cable TV. This led to an explosion in the Indian cable TV industry and saw the entry of many foreign players like Rupert Murdoch's Star T.V,MTV and others. Following the liberalization of the broadcasting industry, the Hong Kong-based Star TV Network introduced five major television channels into the Indian broadcasting space that had so far been monopolised by the Indian government-owned Doordarshan ,MTV, STAR plus, STAR Movies, BBC, Prime Sports and STAR Chinese Channel. Soon after, India saw the launch of Zee TV, the first privately-owned Indian channel to broadcast over cable followed by Asia Television Network (ATN). A few years later CNN,Discovery Channel, National Geopgraphic channel made their foray into India. Later, Star TV Network expanded its bouquet with the introduction of STAR World India,STAR Sports, ESPN, Channel V and STAR Gold. With the launch of the Tamil-language Sun TV (India) in 1992, South India saw the birth of its first private television channel. With a network comprising more than 20 channels in various South Indian languages, Sun TV network recently launched a DTH service and its channels are now available in several countries outside India. Following Sun TV, several television channels sprung up in the south. Among these are the Tamil-language channel The Raj Television Network and the Malayalam-language network Asianet Communications Limited, both launched in 1993. These three networks and their channels today take up most of the broadcasting space in South India. In Telugu-language, Telugu daily newspaper Eanadu started with its own channel called ETV in 1995 later diversified into other Indian languages.
Throughout the 90s, along with a multitude of Hindi-language channels, several regional and English language channels flourished all over India. By 2001, international channels HBO and History Channel started providing service. In 1999–2003, other international channels such as Nickelodeon, Cartoon Network, VH1, Disney and Toon Disney entered the market. Starting in 2003, there has been an explosion of news channels in various languages; the most notable among them are NDTV, CNN IBN and Aaj Tak. The most recent channels/networks in the Indian broadcasting industry include UTV Movies, UTV Bindass, Zoom, Colours, 9X and 9XM. There are several more new channels in the pipeline, including Leader TV. SWOT Analysis of the Industry Strengths: TV industry being one of the most growing industries derives its strength from its large viewership and the large number of endorsements it garners from various corporate houses, thus making it an attractive industry to invest in. The growing middle class with higher disposable income has become the strength of this industry. The low cost of production and high revenues ensure a good return on investment for this industry. Weaknesses: Due to avast industry, it becomes hard to sustain in such a tough competition and to attract a large audience the cheap gimmicks played by various channels is spoiling the quality content on the T.V and thus is affecting its viewership. The industry also has been slow in its growth only picking up in the recent past, thus its innovation and marketing strategies may be not competitive on the global arena. Opportunities: According to the industry experts the industry still has room to expand within India as the market is wide. The high technological innovation which is happening everyday also presents a good opportunity for the industry to utilize the latest technology in expanding its product mix or improving existing ones hence reaching or increasing its market. Threats: Though India can be said to be stable political, the country his known for frequent changes in government administration and instability in some regions or states, this issue negatively affects the media and it is threat to the media. Also government legislations in India are known to some extend as hindering the growth of industry especially for foreign companies. Also the everyday growth of internet and the live streaming of various things on the internet can pose a threat to this industry.
Company Analysis : SUN TV Background It was the first fully privately owned Tamil channel in India when it emerged in 1993. Its serials and soaps have generated the maximum TRP for viewership all over India, making it the most popular network of channels in India. All its channels occupy the top spots in their respective languages. Sun TV, in Tamil is the Network's flagship and most popular channel. Being the premier channel, Sun TV is often used to refer cable TV in general or to the Sun TV Network in general. Kalanithi Maran is the Chairman and Managing Director of media giant Sun Network and has been given awards including the CNBC "Business Excellence Award" in 2005. Sun Network also offers FM Radio Stations (93.5 FM) It has 45 FM Radio Stations and has recently forayed into the print business. In addition, it has also recently launched a DTH satellite television service entitled Sun direct DTH. Sun TV and its sister channels have a dominating share of viewership in Tamil Nadu. Its cable arm, SCV is cable distribution and Sun Direct is the dominating DTH (direct-to-home) player in the state. Its radio network Suryan has a lion’s share of listenership; its magazineKungumum and newspaper Dinakaran are leaders.www.sun.in I s the default t page onc omputer screens across the state since it owns the leading ISP. More than 80 per cent of the state’s population decides on how to vote, where to shop, what to buy based on the news, information and entertainment coming from the Sun Group." History of SUN TV India's second largest television network, popularly known as SunTV Network Limited has powerpacked Twenty TV channels, Forty One FM Radio Stations, Two Daily Newspapers and Four Magazines in several Indian languages. The Company was incorporated as Sumangali Publications Private Limited in 18th December of the year 1985. The SunTV Network originally began as a Tamil satellite channel and further expanded with other channels in other languages including Telugu, Malayalam and Kannada. The channels offered from the company are SunTV, KTV, Sun Music, Sun News, Chutti TV, SuryaTV, GeminiTV, Teja News, Gemini News, Gemini Music, Gemini Cable Vision, UdayaTV, Udaya Movies, Udaya News, etc. The Company also has its own earth station, which beams programs directly to the satellite. The SunTV Network is available in Asia, South Africa, Australia, Europe and USA. In Tamil New Years Day at 14th April of the year 1993, Sun TV entered Tamil homes for the first time. Initially for four-and-a-half hours a day on a time-sharing arrangement with ATN. Over a period of time with Sun TV became a 24-hour channel in January of the year 1995. The word private' in the name of the company was deleted with effect from 1st July of the year 1996. As of September 1998, Domestic up linking commenced from Chennai through VSNL and the company had launched our first Malayalam channel Surya TV in October of the same year 1998. During March of the year 2000, Domestic up linking through own teleport commenced from Chennai and also fully digital transmission of all TV channels commenced. The name of the company was changed to Sun TV Limited. The fresh certificate of incorporation consequent to
the change of name was granted to the company in 27th March of the year 2000. SunTV Network had launched Sun News, news and current affairs based channel in May of the same year 2000. The word 'private' was reinserted in the name of the company in 9th October of the year 2001. The Company bagged Indian Television Academy award for the best Tamil, Malayalam, Kannada and Telugu TV Channel for the year 2001. The Company had launched KTV, a 24-hour film based Tamil channel with its primary focus on films and film-based programme in October of the year 2002. Sun Music, the first 24-hour Tamil music channel was launched under the group in September of the year 2004. As at January of the year 2005, SunTV Network had launched a film and music based 24-hour Malayalam language channel under the name of Kiran TV. During the year 2003, the first radio Frequency Modulation (FM) channel in Tamil of the company were came to existence from three major cities of Tamil Nadu, i.e., Chennai, Coimbatore and Tirunelveli and also it holds licenses for 45 FM radio stations across India. During the year 2005, Kal Radio Limited and South Asia FM Limited were incorporated for the purpose of bidding for FM licenses under the Phase II Policy of MIB. The status of the company was subsequently changed to a public limited company by a special resolution of the members passed at an extraordinary general meeting held in 15th December of the year 2005. The fresh certificate of incorporation consequent on change of name was granted to the company in December 27th 2005. In the year 2006, Sun TV Ltd had launched 3 more FM Radio Stations under the brand S FM through its subsidiaries Kal Radio Ltd and South Asia FM Ltd. The Company's some channels became a pay mode with effect from 2nd December of the 2006. The Company had hiked its advertisement rates by 5% to 27% with effect from January of the year 2007. During the identical year of 2007, Sun TV signed an exclusive Cable & Satellite channels agreement with Nimbus Communications Ltd. Sun TV Network Ltd through its subsidiary South Asia FM Ltd (SAFL) had entered into a strategic alliance with Red FM to further its FM Radio broadcasting business in the North, West and East Indian markets. The Company got its current name SunTV Network Limited' after the merger of Gemini and Udaya in 24th April of the year 2007. During the year 2008, from January to April, SunTV Network had launched its FM Radio Station under the brand 'S FM' at different locations, such as Kanpur, Thiruvananthapuram, Thrissur, Mangalore, Kannur (Kerala), Mysore and Jamshedpur. It is the most viewed Tamil television channel in the world, with syndicated broadcasts in several countries, such as the United Kingdom, United States, and Canada. It remained privately held until 2006, when it was listed on two Indian stock exchanges, the National Stock Exchange of India and the Bombay Stock Exchange. The channel broadcasts a variety of shows, such as numerous soap operas, game shows, newscasts, and shows of general entertainment. Sun TV also hosts numerous film-industry–related events in Tamil Nadu and, as of 2011, hosts the Sun Kudumbam Awards ceremony annually. The channel recently won an award for being the best general entertainment channel in the Asian continent. Sun TV has been accused by some Hindus of being biased against Hindus.
COMPANY INFORMATION The Shareholding Pattern of the company is as follows : Total paid-up capital of the Company, assuming full conversion of warrants and convertible securities Rs. 197,04,23,100 (39,40,84,620 equity shares of Rs.5/- each)
Share Holding Pattern
Jun-12
Particulars
Mar-12
Dec-11 % Holdings
No of Shares (Mn)
No of % Shares Holdings (Mn)
No of % Shares Holdings (Mn)
Promoter & Group
Foreign Sub Total Indian Sub Total Total ShareHolding 303.45 303.45 77.00 77.00 303.45 303.45 77.00 77.00 303.45 303.45 77.00 77.00 0.00 0.00 0.00 0.00 0.00 0.00
Non Promotors / Public Shareholding
Institution Financial Institutions / Banks Foreign Institutional Investors Mutual Funds / UTI Sub Total Non Institution Bodies Corporate NRIs/Foreign Individuals/Foreign Nationals 1.82 0.77 18.05 0.46 0.20 4.58 1.49 0.74 18.14 0.38 0.19 4.60 3.92 0.67 18.95 1.00 0.17 4.81 0.05 51.72 11.52 63.31 0.01 13.12 2.92 16.06 0.04 55.99 11.07 67.13 0.01 14.21 2.81 17.03 0.04 58.97 4.81 63.85 0.01 14.96 1.22 16.20
Individuals holding nominal share capital in excess
ofRs. 1 lakh Individuals holding nominal share capital up to Rs. 1 lakh Sub Total
3.92
0.99
3.05
0.77
2.99
0.76
27.33
6.94
23.51
5.97
26.79
6.80
The equity capital structure is as follows :
Year
2011
Authorised Issued
225.00 197.04
Subscribed Called Up
197.04 197.04
Less : Calls Forfeited Paid Up in Arrears
0.00 0.00 197.04
Board Of Directors Executive Chairman Executive Director Managing Director & CEO Director Company Secretary Director
Kalanithi Maran Kavery Kalanithi K Vijaykumar J Ravindran Nicholas Martin Paul S Selvam R Ravivenkatesh R Ravi M K Harinarayanan
ANALYSIS ON FINANCIAL STATEMENTS
Sun TV Network Limited
Regd. Office : Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai - 600 028. Audited Financial Results for the year ended March 31, 2012.
Part I : Statement of Audited Financial Results for the Quarter and Year ended March 31, 2012 Standalone Quarter Ended Year Ended March 31, December March 31, March 31, March 31, 2012 31, 2011 2011 2012 2011 Unaudited Unaudited Unaudited Audited Audited
Sl. No
Particulars
* All are in Lakhs Consolidated Results Year Ended March 31, March 31, 2012 2011 Audited Audited
1 INCOME Income from operations 42,701 42,701 2 TOTAL EXPENDITURE a. Cost of Revenues b. Purchase of traded goods c. Decrease in inventorics d Employee's Remuneration and Benefits e. Other Expenditure f. Depreciation and Amortisation Total Expenses Profit from operations before 3 other income and finance costs (1 - 2) 4 Othr Income 5 6 7 8 Profit from ordinary activities before finance costs (3 + 4) Finance costs Profit from ordinary activities before tax (5 - 6) Tax expense 2,883 3,839 3,160 10,681 20,563 2,510 4,026 1,862 11,245 19,643 2,834 4,531 2,297 6,783 16,445 10,065 16,406 9,199 44,300 79,970 17,401 8,910 44,738 81,320 10,271 13,255 32 46 18,592 11,357 47,358 90,640 13,493 59 182 19,192 10,634 48,046 91,606 42,511 42,511 46,050 46,050 1,75,737 1,75,737 1,92,371 1,92,371 1,84,717 1,84,717 2,01,346 2,01,346
22,138 1,508 23,646 94 23,552 7,649
22,868 2,321 25,189 362 24,827 8,039
29,605 1,719 31,324 141 31,183 10,349
95,767 7,420 1,03,187 555 1,02,632 33,167
1,11,051 4,679 1,15,730 198 1,15,532 38,310
94,077 7,955 1,02,032 582 1,01,450 33,167
1,09,740 4,870 1,14,610 225 1,14,385 38,310
Net Profit for the 9 period after taxes (7 - 8) 10 Share in profits from Associates
15,903
16,788
20,834
69,465
77,222
68,283
76,075
15,903
16,788
20,834
69,465
77,222
786 222 69,291
349 552 76,976
11 Minority Interest Net profit (9 + 10 + 12 11) Paid-up equity share 13 capital (face value Rs. 5/-) Reserves excluding 14 revaluation reserves 15 Earning Per Share(Rs.) Basic and Diluted
19,704
19,704
19,704
19,704 2,44,820
19,704 2,18,867 19.60
19,704 2,31,492 17.62
19,704 2,05,664 19.53
4.04
4.26
5.29
17.63
1. Audited Statement of Assets and Liabilities as at March 31, 2012 Sl. No Standalone March 31, 2012 March 31, 2011 Audited Audited
* All are in Lakhs
Particulars
Consolidated March 31, 2012 March 31, 2011 Audited Audited
A 1
EQUITY AND LIABLITIES SHAREHOLDERS' FUNDS (a) Capital (b) Reserves and Surplus Sub-total: Shareholders' funds 19,704 2,44,820 2,64,524 19,704 2,18,867 2,38,571 19,704 2,31,492 2,51,196 2,932 9,340 19,704 2,05,664 2,25,368 3,154 9,340
2 3 4
MINORITY INTEREST PREFERENCE SHARES IN SUBSIDIARY HELD BY MINORITY SHAREHOLDERS Non-current liabilities (a) Deferred tax liabilities (net) (b) Other long-term liabilities (c) Long-term provisions Sub-total: Non - current liabilities
3,377 438 135 3,950
4,098 1,137 131 5,366
3,378 919 131 4,428
4,099 1,155 131 5,385
5
Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions Sub-total: Current liabilities TOTAL - EQUITY AND LIABILITIES 2,958 14,372 3,505 20,835 4,052 19,518 17,216 40,786 4,463 14,781 3,505 22,749 14 5,782 20,346 17,216 43,358
2,89,309
2,84,723
2,90,645
2,86,605
B 1
ASSETS Non-Current assets (a) Fixed assets (b) Goodwill on Consolidation (c) Non-current investments (d) Long-term loans and advances Sub-total: Non-current assets 1,06,419 46,238 47,772 2,00,429 1,09,277 46,836 14,215 1,70,328 1,20,554 4,381 19,260 49,416 1,93,611 1,26,341 4,381 18,476 15,696 1,64,894
2
CURRENT ASSETS (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents 1,516 35 46,491 28,991 7,281 75 38,805 58,440 3,181 51 50,903 30,751 8,691 141 42,913 60,302
(e) Short-term loans and advances (f) Other current assets Sub-total: Current assets TOTAL
5,043 6,804 88,880 2,89,309
2,285 7,509 1,14,395 2,84,723
8,183 3,965 97,034 2,90,645
5,079 4,585 1,21,711 2,86,605
From the Above Financial Statement and balance sheet we can see that income from operations for the current year has been reduced from Rs.2013 cr to Rs.1847 cr.but the expenses have not been reduced to a great extent thus reducing the net profit from Rs.769cr to Rs692cr and thereby reducing the earning per share 19.53 per share to 17.62 per share. From the balance sheet we come to know that there has been no addition to the equity capital. Some of the debt capital has been repaid. From the asset point of view long term loans and advances have been increased and there have been some changes in other assets. When compared with its peers SUN TV definitely stands out one of the top performers in the industry. The following chart gives a fair idea about the competition in the industry: Peer Comparison
Company Vatsa Music Zee Entertainmen Sun TV Network Dish TV UTV Software D B Corp Hathway Cable Jagran Prakashan H T Media Den Networks Eros Intl.Media Ent.Network Hindustan Media TV18 Broadcast Wire & Wireless Market Cap (Rs. in Cr.) 127,897.35 14,295.69 11,345.56 7,434.83 4,414.51 3,717.93 2,830.06 2,789.33 2,129.10 P/E P/BV EV/EBIDTA ROE ROCE (TTM) (TTM) (x) (%) (%) (x) (x) 0.00 23.27 16.33 35.56 4.77 4.29 0.00 16.00 10.67 13.84 18.04 10.79 17.30 11.45 11.44 20.29 11.54 10.85 9.67 0.00 37.08 0.0 16.6 35.1 0.0 12.6 33.7 0.0 31.4 16.3 0.6 19.3 12.4 23.6 0.0 0.0 D/E (x)
0.0 0.00 24.8 0.00 52.6 0.00 0.0 0.00 9.0 0.67 36.5 0.34 0.0 0.39 38.3 0.23 19.7 0.25 2.4 0.22 21.6 0.47 16.2 0.05 26.5 0.34 0.0 0.67 0.0 0.00
0.00 -79.38 0.00 19.46 0.00 15.53 14.80 3.91 3.87 3.57 3.71 1.63 2.19 2.37 2.34 1.98 1.15
1,624.62 211.03 1,585.50 1,029.91 859.03 827.51 781.40 14.44 18.23 13.01 87.88
0.00 -10.11
STOCK on the exchange The Share price of SUN TV has been trading in the ramge of Rs.280- Rs.310 in the month of July 2012 and had touched Rs.340 in feb 2012. The stock is largely traded on the exchange which is evident from the volumes of trade of the stock.
SUMMARY The above analysis leads to a conclusion that SUN TV has maintained its market share and revenue in its sector and is among the top corporates in this industry. A SWOT analysis can bring a clear analysis: Strengths: Sun has built up a large library of around 2,600 films, in Tamil and Malayalam, which has helped it retain its prime position. Besides, it continues to buy rights for films. Industry watchers believe that the pay TV opportunity in Tamil Nadu and Kerala is large and will increase with the arrival of new platforms like DTH. Also the market share and the revenues generated are the major strengths keeping it on a fast track of growth and success. Weaknesses : Sun Network operates in an intensely competitive industry. The competition and increasing prices may adversely affect the ability to acquired desired programming and artistic talent. Also it dominates in the south and has not yet made a mark in the entire country. Opportunities : The ever evolving technologies in television open more opportunities and challenges. The M&E industry is ready to zoom at a very fast pace catalyzed by many factors like convergence of media, films, digital media and increase in broadband penetration thus helping it to become a front runner. The fact that significant households of India arestill without television connectivity highlights the scope of growth in the segment. The majority of the revenue generated in the television industry is through advertisements followed by subscription. Strong growth projected in DTH segment would result insubstantial increase in subscription revenue over the years to come. Increasing interesting regional content among Indian population across the borders, results in increased overseas viewership thereby attracting foreign investment. Radio broadcasting in India which is still in its infancy is evolving to be a revenue spinner in the coming years. Threats: Technological failures could adversely affect the business. Advertising income continue to be the major source of Sun Network's revenues, which could decline due to a variety of factors. The commercial success of Sun Network depends on our ability to cater to viewer performance and maintain high audience shares which could be affected.
REFERENCEShttp://en.wikipedia.orghttp://www.sunnetwork.orghttp://www.indiainfoline.comhttp://www.scribd.comhttp://www.suntv.inhttp://en.wikipedia.orghttp://www.moneycontrol.com
ASHAY KAWALE SIMSREE MMS
doc_233226408.docx
This is a documentation is about company analysis of SUN tv.
SIMSREE PRE-INDUCTION ASSIGNMENT Company Analysis SIMSREE 2012-14 COMPANY FOR ANALYSIS- SUN T.V Industry Analysis : The television industry in India is a huge industry with a variety of programmes on various channels in various languages showing the cultural diversity of India and thus satisfying the entertainment quotient of the people of the country. TV soaps are extremely popular and it has produced a number of celebrities some of them even attaining national fame. A survey shows that almost half a million households in India have a television. As of 2010, the country has a collection of free and subscription services over a variety of distribution media, through which there are over 515 channels of which 150 are pay channels. According to Pioneer Investcorp, the Indian cable industry is worth 270 billion (US$4.89 billion) and is the third largest in the world after China and United States The number of TV homes in India grew from 120 million in 2007 to 148 million in 2011. Cable reaches 94 million homes with 88 million analog connections and 6 million digital ones, while DTH has commanded 41 million subscribers. The TV industry being one of the fastest growing industries in the word and with the advent of new technology and new and extensive use by the corporate has provided both opportunities and challenges to this industry. Television Industry with increased hours of mass entertainment programming during prime time and better coverage of popular events has seen an explosive growth in consumer mind share. Its status as the preferred mode of entertainment of the people is obvious from the fact that it now contributes more than 60percent of the entertainment industry's revenues. Television the major contributor to the overall industry revenue is estimated to grow at a stable rate over the next five years resulting in increased viewership having wider range of channels to select from. The television industry is now ready to advance to the next stage of its evolution, grasp the opportunities presented by the digital age and completely change the home entertainment landscape. Over the next few years, cable and satellite, along with emerging delivery platforms like DTH and IP-TV are expected to revolutionize the industry and it is expected that digital television connectivity would reach every nook and corner of India. Mobile TV where picture can be relayed to mobile phones is in the early stage of development and hasgot a tremendous future.
PEST Analysis of TV industry
PEST Analysis refers to the influence of Political, Economic, Social and Technological factors affecting the Television industry. Poltical: The ministry of Information and Broadcasting headed by Smt.Ambika Soni has an important share in the regulations and rules by which our TV industry works. The content
regulation as well as other guidelines is set up by this ministry. Also the government also knows that it is one of the fastest growing industry. In 1992, the Indian government led by P.V. Narsimharao started a series of economic reforms including the liberalization of the broadcasting industry, opening it up to cable television. Similarly now it has been taking steps to make it mandatory to install DTH connections in all homes so there is some regulation over the pricing policy and a control over piracy. Economic: The economic scenario with respect to the tv industry is the most encouraging with newer channels and programmes being introduced every year and thus making it more lucrative. The economy of india and the various increased interest of Foreign investments in the form of FII’s is having its effect on this industry and a definitely a positive effect with more and more players entering the industry and thus making it economically viable industry. Social: The social impact which the TV industry has on the people is tremendous. Not only are the various soaps played on various entertainment channels giving out social messages having an impact on the society but the various other channels including News channels, Information channels are showing its effects on the industry. The TV industry is also evolving based on the needs of the society and thus the society is influencing the industry in some or the other way. Technology : The ever growing technology with the introduction of Satellite channels, the use of cable transmission is reducing with many households opting for DTH connections over cable. Also the advent of High Defination channels, it has definitely led to great technological advancements in this industry. Also Internet Protocal Television launched only in some cities such as Mumbai around 2006-2007 by MTNL and BSNL and later expanded to many urban areas and is still expanding. Private Telecommunications Companies Airtel and Reliance Telecommunications also started its IPTV services in Cities like New Delhi and Bangalore At present (2009/2010) IPTV in India is hardly making any impact in the market. But IPTV and Internet TV content in India are expected to expand. Screen Digest estimates broadband penetration of TV households to increase from 4.2 percent in 2009 to 13.4 percent in 2013.
Growth of Indian TV Industry Terrestrial television in India started with the experimental telecast starting in Delhi on 15 September 1959 with a small transmitter and a makeshift studio. The regular daily transmission started in 1965 as a part of All India Radio. The Television service was extended to Bombay and Amritsar in 1972. Up until 1975, only seven Indian cities had a television service and Doordarshan remained the sole provider of television in India. Television services were separated from radio in 1976. National telecasts were introduced in 1982. In the same year, colour TV was introduced in the Indian market. Indian small screen programming started off in the early 1980s. At that time there was only one national channel Doordarshan, which was government owned. The Ramayana and Mahabharta were the first major television series
produced. This serial notched up the world record in viewership numbers for a single program. By the late 1980s more and more people started to own television sets. Though there was a single channel, television programming had reached saturation. Hence the government opened up another channel which had part national programming and part regional. This channel was known as DD 2 later DD Metro. Both channels were broadcast terrestrially. PAS-1 and PAS-4 are satellites whose transponders help in the telecasting of DD programmes in half the regions of the world. An international channel called DD International was started in 1995 and it telecasts programmes for 19 hours a day to foreign countries-via PAS-4 to Europe,Asia and Africa, and via PAS-1 to North America. TV Programs: The 80s was the era of Doordarshan with shows like Hum Log (1984), Buniyaad (1986-87) and comedy shows like Yeh Jo Hai Zindagi (1984), Mythological dramas like Ramayan (1987-88) and Mahabharat (1989-90) glued millions to Doordarshan and later on Bharat Ek Khoj, The Sword of Tipu Sultan and Chandrakanta. Hindi film songs based programs like Chitrahaar, Rangoli, Superhit Muqabla crime thrillers like Karamchand, Byomkesh Bakshi. Shows targeted at children include Dada Dadi ki Kahaniyan, Vikram Betal, Malgudi Days, Tenali Rama. In 1992, the Indian government led by P.V Narsimha Rao started a series of economic reforms including the liberalization of the broadcasting industry, opening it up to cable TV. This led to an explosion in the Indian cable TV industry and saw the entry of many foreign players like Rupert Murdoch's Star T.V,MTV and others. Following the liberalization of the broadcasting industry, the Hong Kong-based Star TV Network introduced five major television channels into the Indian broadcasting space that had so far been monopolised by the Indian government-owned Doordarshan ,MTV, STAR plus, STAR Movies, BBC, Prime Sports and STAR Chinese Channel. Soon after, India saw the launch of Zee TV, the first privately-owned Indian channel to broadcast over cable followed by Asia Television Network (ATN). A few years later CNN,Discovery Channel, National Geopgraphic channel made their foray into India. Later, Star TV Network expanded its bouquet with the introduction of STAR World India,STAR Sports, ESPN, Channel V and STAR Gold. With the launch of the Tamil-language Sun TV (India) in 1992, South India saw the birth of its first private television channel. With a network comprising more than 20 channels in various South Indian languages, Sun TV network recently launched a DTH service and its channels are now available in several countries outside India. Following Sun TV, several television channels sprung up in the south. Among these are the Tamil-language channel The Raj Television Network and the Malayalam-language network Asianet Communications Limited, both launched in 1993. These three networks and their channels today take up most of the broadcasting space in South India. In Telugu-language, Telugu daily newspaper Eanadu started with its own channel called ETV in 1995 later diversified into other Indian languages.
Throughout the 90s, along with a multitude of Hindi-language channels, several regional and English language channels flourished all over India. By 2001, international channels HBO and History Channel started providing service. In 1999–2003, other international channels such as Nickelodeon, Cartoon Network, VH1, Disney and Toon Disney entered the market. Starting in 2003, there has been an explosion of news channels in various languages; the most notable among them are NDTV, CNN IBN and Aaj Tak. The most recent channels/networks in the Indian broadcasting industry include UTV Movies, UTV Bindass, Zoom, Colours, 9X and 9XM. There are several more new channels in the pipeline, including Leader TV. SWOT Analysis of the Industry Strengths: TV industry being one of the most growing industries derives its strength from its large viewership and the large number of endorsements it garners from various corporate houses, thus making it an attractive industry to invest in. The growing middle class with higher disposable income has become the strength of this industry. The low cost of production and high revenues ensure a good return on investment for this industry. Weaknesses: Due to avast industry, it becomes hard to sustain in such a tough competition and to attract a large audience the cheap gimmicks played by various channels is spoiling the quality content on the T.V and thus is affecting its viewership. The industry also has been slow in its growth only picking up in the recent past, thus its innovation and marketing strategies may be not competitive on the global arena. Opportunities: According to the industry experts the industry still has room to expand within India as the market is wide. The high technological innovation which is happening everyday also presents a good opportunity for the industry to utilize the latest technology in expanding its product mix or improving existing ones hence reaching or increasing its market. Threats: Though India can be said to be stable political, the country his known for frequent changes in government administration and instability in some regions or states, this issue negatively affects the media and it is threat to the media. Also government legislations in India are known to some extend as hindering the growth of industry especially for foreign companies. Also the everyday growth of internet and the live streaming of various things on the internet can pose a threat to this industry.
Company Analysis : SUN TV Background It was the first fully privately owned Tamil channel in India when it emerged in 1993. Its serials and soaps have generated the maximum TRP for viewership all over India, making it the most popular network of channels in India. All its channels occupy the top spots in their respective languages. Sun TV, in Tamil is the Network's flagship and most popular channel. Being the premier channel, Sun TV is often used to refer cable TV in general or to the Sun TV Network in general. Kalanithi Maran is the Chairman and Managing Director of media giant Sun Network and has been given awards including the CNBC "Business Excellence Award" in 2005. Sun Network also offers FM Radio Stations (93.5 FM) It has 45 FM Radio Stations and has recently forayed into the print business. In addition, it has also recently launched a DTH satellite television service entitled Sun direct DTH. Sun TV and its sister channels have a dominating share of viewership in Tamil Nadu. Its cable arm, SCV is cable distribution and Sun Direct is the dominating DTH (direct-to-home) player in the state. Its radio network Suryan has a lion’s share of listenership; its magazineKungumum and newspaper Dinakaran are leaders.www.sun.in I s the default t page onc omputer screens across the state since it owns the leading ISP. More than 80 per cent of the state’s population decides on how to vote, where to shop, what to buy based on the news, information and entertainment coming from the Sun Group." History of SUN TV India's second largest television network, popularly known as SunTV Network Limited has powerpacked Twenty TV channels, Forty One FM Radio Stations, Two Daily Newspapers and Four Magazines in several Indian languages. The Company was incorporated as Sumangali Publications Private Limited in 18th December of the year 1985. The SunTV Network originally began as a Tamil satellite channel and further expanded with other channels in other languages including Telugu, Malayalam and Kannada. The channels offered from the company are SunTV, KTV, Sun Music, Sun News, Chutti TV, SuryaTV, GeminiTV, Teja News, Gemini News, Gemini Music, Gemini Cable Vision, UdayaTV, Udaya Movies, Udaya News, etc. The Company also has its own earth station, which beams programs directly to the satellite. The SunTV Network is available in Asia, South Africa, Australia, Europe and USA. In Tamil New Years Day at 14th April of the year 1993, Sun TV entered Tamil homes for the first time. Initially for four-and-a-half hours a day on a time-sharing arrangement with ATN. Over a period of time with Sun TV became a 24-hour channel in January of the year 1995. The word private' in the name of the company was deleted with effect from 1st July of the year 1996. As of September 1998, Domestic up linking commenced from Chennai through VSNL and the company had launched our first Malayalam channel Surya TV in October of the same year 1998. During March of the year 2000, Domestic up linking through own teleport commenced from Chennai and also fully digital transmission of all TV channels commenced. The name of the company was changed to Sun TV Limited. The fresh certificate of incorporation consequent to
the change of name was granted to the company in 27th March of the year 2000. SunTV Network had launched Sun News, news and current affairs based channel in May of the same year 2000. The word 'private' was reinserted in the name of the company in 9th October of the year 2001. The Company bagged Indian Television Academy award for the best Tamil, Malayalam, Kannada and Telugu TV Channel for the year 2001. The Company had launched KTV, a 24-hour film based Tamil channel with its primary focus on films and film-based programme in October of the year 2002. Sun Music, the first 24-hour Tamil music channel was launched under the group in September of the year 2004. As at January of the year 2005, SunTV Network had launched a film and music based 24-hour Malayalam language channel under the name of Kiran TV. During the year 2003, the first radio Frequency Modulation (FM) channel in Tamil of the company were came to existence from three major cities of Tamil Nadu, i.e., Chennai, Coimbatore and Tirunelveli and also it holds licenses for 45 FM radio stations across India. During the year 2005, Kal Radio Limited and South Asia FM Limited were incorporated for the purpose of bidding for FM licenses under the Phase II Policy of MIB. The status of the company was subsequently changed to a public limited company by a special resolution of the members passed at an extraordinary general meeting held in 15th December of the year 2005. The fresh certificate of incorporation consequent on change of name was granted to the company in December 27th 2005. In the year 2006, Sun TV Ltd had launched 3 more FM Radio Stations under the brand S FM through its subsidiaries Kal Radio Ltd and South Asia FM Ltd. The Company's some channels became a pay mode with effect from 2nd December of the 2006. The Company had hiked its advertisement rates by 5% to 27% with effect from January of the year 2007. During the identical year of 2007, Sun TV signed an exclusive Cable & Satellite channels agreement with Nimbus Communications Ltd. Sun TV Network Ltd through its subsidiary South Asia FM Ltd (SAFL) had entered into a strategic alliance with Red FM to further its FM Radio broadcasting business in the North, West and East Indian markets. The Company got its current name SunTV Network Limited' after the merger of Gemini and Udaya in 24th April of the year 2007. During the year 2008, from January to April, SunTV Network had launched its FM Radio Station under the brand 'S FM' at different locations, such as Kanpur, Thiruvananthapuram, Thrissur, Mangalore, Kannur (Kerala), Mysore and Jamshedpur. It is the most viewed Tamil television channel in the world, with syndicated broadcasts in several countries, such as the United Kingdom, United States, and Canada. It remained privately held until 2006, when it was listed on two Indian stock exchanges, the National Stock Exchange of India and the Bombay Stock Exchange. The channel broadcasts a variety of shows, such as numerous soap operas, game shows, newscasts, and shows of general entertainment. Sun TV also hosts numerous film-industry–related events in Tamil Nadu and, as of 2011, hosts the Sun Kudumbam Awards ceremony annually. The channel recently won an award for being the best general entertainment channel in the Asian continent. Sun TV has been accused by some Hindus of being biased against Hindus.
COMPANY INFORMATION The Shareholding Pattern of the company is as follows : Total paid-up capital of the Company, assuming full conversion of warrants and convertible securities Rs. 197,04,23,100 (39,40,84,620 equity shares of Rs.5/- each)
Share Holding Pattern
Jun-12
Particulars
Mar-12
Dec-11 % Holdings
No of Shares (Mn)
No of % Shares Holdings (Mn)
No of % Shares Holdings (Mn)
Promoter & Group
Foreign Sub Total Indian Sub Total Total ShareHolding 303.45 303.45 77.00 77.00 303.45 303.45 77.00 77.00 303.45 303.45 77.00 77.00 0.00 0.00 0.00 0.00 0.00 0.00
Non Promotors / Public Shareholding
Institution Financial Institutions / Banks Foreign Institutional Investors Mutual Funds / UTI Sub Total Non Institution Bodies Corporate NRIs/Foreign Individuals/Foreign Nationals 1.82 0.77 18.05 0.46 0.20 4.58 1.49 0.74 18.14 0.38 0.19 4.60 3.92 0.67 18.95 1.00 0.17 4.81 0.05 51.72 11.52 63.31 0.01 13.12 2.92 16.06 0.04 55.99 11.07 67.13 0.01 14.21 2.81 17.03 0.04 58.97 4.81 63.85 0.01 14.96 1.22 16.20
Individuals holding nominal share capital in excess
ofRs. 1 lakh Individuals holding nominal share capital up to Rs. 1 lakh Sub Total
3.92
0.99
3.05
0.77
2.99
0.76
27.33
6.94
23.51
5.97
26.79
6.80
The equity capital structure is as follows :
Year
2011
Authorised Issued
225.00 197.04
Subscribed Called Up
197.04 197.04
Less : Calls Forfeited Paid Up in Arrears
0.00 0.00 197.04
Board Of Directors Executive Chairman Executive Director Managing Director & CEO Director Company Secretary Director
Kalanithi Maran Kavery Kalanithi K Vijaykumar J Ravindran Nicholas Martin Paul S Selvam R Ravivenkatesh R Ravi M K Harinarayanan
ANALYSIS ON FINANCIAL STATEMENTS
Sun TV Network Limited
Regd. Office : Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai - 600 028. Audited Financial Results for the year ended March 31, 2012.
Part I : Statement of Audited Financial Results for the Quarter and Year ended March 31, 2012 Standalone Quarter Ended Year Ended March 31, December March 31, March 31, March 31, 2012 31, 2011 2011 2012 2011 Unaudited Unaudited Unaudited Audited Audited
Sl. No
Particulars
* All are in Lakhs Consolidated Results Year Ended March 31, March 31, 2012 2011 Audited Audited
1 INCOME Income from operations 42,701 42,701 2 TOTAL EXPENDITURE a. Cost of Revenues b. Purchase of traded goods c. Decrease in inventorics d Employee's Remuneration and Benefits e. Other Expenditure f. Depreciation and Amortisation Total Expenses Profit from operations before 3 other income and finance costs (1 - 2) 4 Othr Income 5 6 7 8 Profit from ordinary activities before finance costs (3 + 4) Finance costs Profit from ordinary activities before tax (5 - 6) Tax expense 2,883 3,839 3,160 10,681 20,563 2,510 4,026 1,862 11,245 19,643 2,834 4,531 2,297 6,783 16,445 10,065 16,406 9,199 44,300 79,970 17,401 8,910 44,738 81,320 10,271 13,255 32 46 18,592 11,357 47,358 90,640 13,493 59 182 19,192 10,634 48,046 91,606 42,511 42,511 46,050 46,050 1,75,737 1,75,737 1,92,371 1,92,371 1,84,717 1,84,717 2,01,346 2,01,346
22,138 1,508 23,646 94 23,552 7,649
22,868 2,321 25,189 362 24,827 8,039
29,605 1,719 31,324 141 31,183 10,349
95,767 7,420 1,03,187 555 1,02,632 33,167
1,11,051 4,679 1,15,730 198 1,15,532 38,310
94,077 7,955 1,02,032 582 1,01,450 33,167
1,09,740 4,870 1,14,610 225 1,14,385 38,310
Net Profit for the 9 period after taxes (7 - 8) 10 Share in profits from Associates
15,903
16,788
20,834
69,465
77,222
68,283
76,075
15,903
16,788
20,834
69,465
77,222
786 222 69,291
349 552 76,976
11 Minority Interest Net profit (9 + 10 + 12 11) Paid-up equity share 13 capital (face value Rs. 5/-) Reserves excluding 14 revaluation reserves 15 Earning Per Share(Rs.) Basic and Diluted
19,704
19,704
19,704
19,704 2,44,820
19,704 2,18,867 19.60
19,704 2,31,492 17.62
19,704 2,05,664 19.53
4.04
4.26
5.29
17.63
1. Audited Statement of Assets and Liabilities as at March 31, 2012 Sl. No Standalone March 31, 2012 March 31, 2011 Audited Audited
* All are in Lakhs
Particulars
Consolidated March 31, 2012 March 31, 2011 Audited Audited
A 1
EQUITY AND LIABLITIES SHAREHOLDERS' FUNDS (a) Capital (b) Reserves and Surplus Sub-total: Shareholders' funds 19,704 2,44,820 2,64,524 19,704 2,18,867 2,38,571 19,704 2,31,492 2,51,196 2,932 9,340 19,704 2,05,664 2,25,368 3,154 9,340
2 3 4
MINORITY INTEREST PREFERENCE SHARES IN SUBSIDIARY HELD BY MINORITY SHAREHOLDERS Non-current liabilities (a) Deferred tax liabilities (net) (b) Other long-term liabilities (c) Long-term provisions Sub-total: Non - current liabilities
3,377 438 135 3,950
4,098 1,137 131 5,366
3,378 919 131 4,428
4,099 1,155 131 5,385
5
Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions Sub-total: Current liabilities TOTAL - EQUITY AND LIABILITIES 2,958 14,372 3,505 20,835 4,052 19,518 17,216 40,786 4,463 14,781 3,505 22,749 14 5,782 20,346 17,216 43,358
2,89,309
2,84,723
2,90,645
2,86,605
B 1
ASSETS Non-Current assets (a) Fixed assets (b) Goodwill on Consolidation (c) Non-current investments (d) Long-term loans and advances Sub-total: Non-current assets 1,06,419 46,238 47,772 2,00,429 1,09,277 46,836 14,215 1,70,328 1,20,554 4,381 19,260 49,416 1,93,611 1,26,341 4,381 18,476 15,696 1,64,894
2
CURRENT ASSETS (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents 1,516 35 46,491 28,991 7,281 75 38,805 58,440 3,181 51 50,903 30,751 8,691 141 42,913 60,302
(e) Short-term loans and advances (f) Other current assets Sub-total: Current assets TOTAL
5,043 6,804 88,880 2,89,309
2,285 7,509 1,14,395 2,84,723
8,183 3,965 97,034 2,90,645
5,079 4,585 1,21,711 2,86,605
From the Above Financial Statement and balance sheet we can see that income from operations for the current year has been reduced from Rs.2013 cr to Rs.1847 cr.but the expenses have not been reduced to a great extent thus reducing the net profit from Rs.769cr to Rs692cr and thereby reducing the earning per share 19.53 per share to 17.62 per share. From the balance sheet we come to know that there has been no addition to the equity capital. Some of the debt capital has been repaid. From the asset point of view long term loans and advances have been increased and there have been some changes in other assets. When compared with its peers SUN TV definitely stands out one of the top performers in the industry. The following chart gives a fair idea about the competition in the industry: Peer Comparison
Company Vatsa Music Zee Entertainmen Sun TV Network Dish TV UTV Software D B Corp Hathway Cable Jagran Prakashan H T Media Den Networks Eros Intl.Media Ent.Network Hindustan Media TV18 Broadcast Wire & Wireless Market Cap (Rs. in Cr.) 127,897.35 14,295.69 11,345.56 7,434.83 4,414.51 3,717.93 2,830.06 2,789.33 2,129.10 P/E P/BV EV/EBIDTA ROE ROCE (TTM) (TTM) (x) (%) (%) (x) (x) 0.00 23.27 16.33 35.56 4.77 4.29 0.00 16.00 10.67 13.84 18.04 10.79 17.30 11.45 11.44 20.29 11.54 10.85 9.67 0.00 37.08 0.0 16.6 35.1 0.0 12.6 33.7 0.0 31.4 16.3 0.6 19.3 12.4 23.6 0.0 0.0 D/E (x)
0.0 0.00 24.8 0.00 52.6 0.00 0.0 0.00 9.0 0.67 36.5 0.34 0.0 0.39 38.3 0.23 19.7 0.25 2.4 0.22 21.6 0.47 16.2 0.05 26.5 0.34 0.0 0.67 0.0 0.00
0.00 -79.38 0.00 19.46 0.00 15.53 14.80 3.91 3.87 3.57 3.71 1.63 2.19 2.37 2.34 1.98 1.15
1,624.62 211.03 1,585.50 1,029.91 859.03 827.51 781.40 14.44 18.23 13.01 87.88
0.00 -10.11
STOCK on the exchange The Share price of SUN TV has been trading in the ramge of Rs.280- Rs.310 in the month of July 2012 and had touched Rs.340 in feb 2012. The stock is largely traded on the exchange which is evident from the volumes of trade of the stock.
SUMMARY The above analysis leads to a conclusion that SUN TV has maintained its market share and revenue in its sector and is among the top corporates in this industry. A SWOT analysis can bring a clear analysis: Strengths: Sun has built up a large library of around 2,600 films, in Tamil and Malayalam, which has helped it retain its prime position. Besides, it continues to buy rights for films. Industry watchers believe that the pay TV opportunity in Tamil Nadu and Kerala is large and will increase with the arrival of new platforms like DTH. Also the market share and the revenues generated are the major strengths keeping it on a fast track of growth and success. Weaknesses : Sun Network operates in an intensely competitive industry. The competition and increasing prices may adversely affect the ability to acquired desired programming and artistic talent. Also it dominates in the south and has not yet made a mark in the entire country. Opportunities : The ever evolving technologies in television open more opportunities and challenges. The M&E industry is ready to zoom at a very fast pace catalyzed by many factors like convergence of media, films, digital media and increase in broadband penetration thus helping it to become a front runner. The fact that significant households of India arestill without television connectivity highlights the scope of growth in the segment. The majority of the revenue generated in the television industry is through advertisements followed by subscription. Strong growth projected in DTH segment would result insubstantial increase in subscription revenue over the years to come. Increasing interesting regional content among Indian population across the borders, results in increased overseas viewership thereby attracting foreign investment. Radio broadcasting in India which is still in its infancy is evolving to be a revenue spinner in the coming years. Threats: Technological failures could adversely affect the business. Advertising income continue to be the major source of Sun Network's revenues, which could decline due to a variety of factors. The commercial success of Sun Network depends on our ability to cater to viewer performance and maintain high audience shares which could be affected.
REFERENCEShttp://en.wikipedia.orghttp://www.sunnetwork.orghttp://www.indiainfoline.comhttp://www.scribd.comhttp://www.suntv.inhttp://en.wikipedia.orghttp://www.moneycontrol.com
ASHAY KAWALE SIMSREE MMS
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