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Media: Key drivers in 2011
�� Robust revenue growth of 16%
�� Our media universe is expected to post robust growth (16%) in revenue in FY12E over FY11E led by advertising and subscription
revenue growth for broadcasters and advertising growth for print companies. We expect industry leaders (Sun TV and DB corp.) to
be the key beneficiaries given their pricing power and ability to manage costs efficiently
�� Strong advertising momentum to continue in FY12
�� Advertising volumes across mediums (broadcasting/ print /radio) picked up in FY11 with high utilization levels in print media and
in key GECs; especially in regional markets. We expect advertising growth in FY12 to be driven by higher ad yields. The regional
advertising growth will again outpace overall industry growth
�� Strong subscription revenue growth for broadcasters and tepid circulation growth for print companies
�� DTH industry is currently adding ~1 mn subs/month and we expect a similar run-rate to continue in FY12. The DTH subs base is
likely to touch 33 mn by CY11 and will remain a significant contributor to the revenues of broadcasters. We expect digital cable
subs additions to pick up in CY11 and provide further impetus to the subscription revenue growth
�� Circulation revenues, for print companies, will remain tepid as high competitive intensity will keep the cover prices under check
�� Cost pressure may impact margins
�� We believe buoyancy in the sector is likely to result in higher costs (programming and SG&A). The competitive intensity in Hindi
GECs space is likely to pick up and we expect content cost to increase by 15-18% for all major broadcasters. Higher-than-expected
rise in newsprint cost will be negative for all print companies
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