>MEDIA SECTOR (ICICI SECURITIES)

Ad environment likely turning more positive

Hindi GECs – Zee TV #1 in prime time; NDTV Imagine loses ground
Competition within tier I of Hindi GECs remained high, with Colors and STAR Plus at the #1 spot alternatively in different weeks in August ’09. Zee TV continued to generate stable GRPs, and bridged the gap from the #1 player to 15-30 GRPs in August ’09 from 30-40 GRPs in July ’09. Zee TV was the clear #1 in prime-time GRPs, while Colors and STAR Plus shared the #2 and #3 spots. NDTV Imagine lost GRP share post the finale of its blockbuster show, Rakhi Ka Swayamwar and its GRP dipped below 100 to 93 in week 35 after 13 weeks of continuous >100 GRPs. Sony Entertainment TV maintained its GRP share and was the #4 player in weeks 33-35.

Ad rate hikes by Deccan Chronicle and Zee Entertainment Enterprises
In an indication of improving ad outlook, Deccan Chronicle (DCHL) announced a 20% hike in its ad rates starting October 1, ’09. However other print players such as Jagran Prakashan and HT Media commented that they do not plan to increase ad rates in the near future. In the broadcasting space, Zee Entertainment Enterprises (ZEEL) is expected to increase its ad rates up to 10% across its different channels. While the macro environment has turned positive, the unknown impact of deficient monsoons could play spoilsport.

Zee News – Competition & distribution issues worrisome
Zee Bangla and Zee Kannada continued to lose GRP share in their respective markets owing to intensifying competition from the STAR Group channels – STAR Jalsha in West Bengal and Suvarna TV in Karnataka – and possible distribution issues. Zee Marathi remained the #1 player in the Marathi market, but intensifying competition from STAR Jalsha led to loss of GRP share. Zee Telugu also lost GRP share in the fragmented Telugu market as Maa Telugu, another #2 spot contender, witnessed increase in GRP share in August ’09.

To see full report: MEDIA SECTOR