Zee Entertainment Enterprises::Takeaways Motilal Oswal Annual Global Investor Conferences

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Key Takeaways
Core essence: Despite near-term sluggishness in the ad environment, medium to
long-term opportunity remains attractive, led by consumption growth and efforts to
improve subscription revenue.
Industry insights
 Increasing regionalization and fragmentation of content remain dominant themes in
the Indian broadcasting space.
 General entertainment and movies remain the dominant genres in India, accounting
for ~67% of total viewership.
 Sports is a loss-making proposition due to lack of subscription revenue and majority
(~75%) of viewership and revenue coming from cricket.
 Digitization would lead to (1) greater fragmentation, (2) better monetization of
niche genres and sports content, and (3) higher subscription revenue, reducing the
cyclicality associated with ad revenue.
 Indian broadcasting industry revenue is likely to grow at ~16% CAGR over the next
four years.
Company vision and strategy
 With its diversified network, Zee remains the leading broadcaster of Indian content
globally.
 Media Pro, the recent distribution JV between Zee Turner and Star Den, is aimed at
getting the rightful share of pay revenue from LCOs.
 The company will maintain its cost discipline and refrain from going after high-cost
GRPs, which do not generate adequate returns.
Key triggers/milestones/challenges
 Lack of profitability in the sports genre and sluggish ad revenue environment remain
the key challenges.
 Mandatory sunset for analog signals would be a significant milestone for the sector.


Mr Punit Goenka is Managing
Director and CEO of Zee
Entertainment Enterprises. His
strong work ethics and hands-on
approach have been instrumental in
steering the Zee Empire to new
frontiers of success. Under his
leadership, Zee TV has emerged a
leader among General Entertainment
Channels in India.
Mr Goenka has grown up the ranks,
handling various responsibilities
across the Essel conglomerate for
over 14 years. He started his career
with Zee TV in 1995 as head of the
Music division and went on to
shoulder additional responsibilities
across Essel Group Companies. He
serves as a Director of other public
limited companies such as: Essel
Infraprojects, Essel Telecom
Holdings, Rochan (India), Zee
Sports, Agrani Wireless Services,
Agrani Satellite Services, ASC Mobile
Communication, and Diligent Media
Corporation.
Mr Goenka is a great mentor. He has
shared his experiences and
knowledge at management
education programs such as Young
Managers Program at INSEAD,
France, and 'Birthing of Giants' by
Young Entrepreneurs' Organization
and MIT Enterprise Forum, Inc,
Boston, USA.