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Executive Summary
In its onslaught of big reforms in the country, the UPA-II government has recently passed
the decision to raise the Foreign Direct Investment (FDI) ceiling to 74% from 49% in the
Broadcasting Sector in India to improve the accessibility of broadcasting services and
increase adaptation of international best practices
The current reforms will help the industry in terms of attracting more players in the cable
networks sector and will also facilitate the process of convergence in communication and
entertainment technologies
40%
5%
38%
Mass Entertainment
Regional Channels
News Channels
English Entertainment
Sports Channels
International Kids
Music Channels
India is estimated to have 106mm households with cable and satellite TV today. Some
26mm use DTH and 80mm receive feed from cable networks
What is Changing ?
Government Policies
Activity
Cable Networks
Examples
Existing
% of FDI
Existing
Route
Amended
% of FDI
Amended Route
49%
Government
No Change
Automatic
Dish TV
49%
Government
74%
Setting up of Up
linking HUB
/Teleports
Tata Sky
49%
Government
74%
Up-linking a News
& Current Affairs
TV Channel
ABP News
26%
Government
No Change
No Change
Airtel, Vodafone
Not
specified in
existing
policy
Not Specified
in existing
policy
74%
Direct-to-Home
Mobile TV
Bargaining
power of consumers - Medium
Threat
of Substitutes - Medium
A significant increase in the
popularity of other
entertainment mediums
A rise of downloading programs
through the internet, both
legally and illegally ( iPad
obsessed generation )
Broadcasting
Industry :
Moderately
Attractive
Bargaining
power of Suppliers - Medium
Capital Raising
Restructuring
We advise on business
restructurings to help achieve
financial, strategic and operational
efficiency
Organizational
Transformation
We work with companies to put
systems, processes and
people in place to help take
advantage of both organic and
inorganic synergies
Turnarounds
We work closely with companies to
help devise and implement a
turnaround strategy by plugging the
deficiencies of
management, technology, capital or
partnerships
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