1. July 2005 Entertainment & Media An Unfolding Opportunity

2. July 2005  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India Entertainment & Media

3. July 2005 Entertainment & Media  Population  States/UTs  Geographical Area  Languages recognised  Business language  Per Capita Income**  GDP** Over 1 bn 35 3.3 mn sq kms 22 English US$ 534 US$ 650 bn **(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005)

4. July 2005 India - Fast pace Growth  Largest democracy  4th largest economy by PPP index  6th largest energy consumer  ForEx reserves skyrocket from US$ 42 bn (2001) to US$ 133 bn (February, 2005)  GDP growth to continue between 6-8%  3rd largest economy by 2050: Goldman Sachs  Leading in IT & BPO  Oil & Gas and Biotechnology sunrise industries

5. July 2005 India - Leading the world  Hero Honda - largest manufacturer of motorcycles  Moser Baer - among the top three media manufacturers in the world  Pharmaceutical Industry - 4th largest in world  Walmart, GAP, Hilfiger sources more than USD 1bn worth apparel from India  100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler Chrysler

6. July 2005  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India Entertainment & Media

7. July 2005 The Entertainment & Media Industry  Size US$6900 mn  Estimated growth rate over next 5 years 14% CAGR One of the fastest growing sectors of the Indian economy

8. July 2005 Films Wing Directorate of Film Festivals Ø National Film Development Corpn Ø Central Board of Film Certification Broadcasting Wing Ø Prasar Bharti o AIR o Doordarshan Information Wing Press Council of India Press Information Bureau Ministry of Information & Broadcasting Key Institutional Framework

9. July 2005 Constituents

10. July 2005 The Changing Face FilmsTelevisionRadioMedia Music E&M Sector  Content  Commercial (Hindi & Regional) Cinema Art Movies Cartoon Movies Commissioned Programs News & Current Affairs Commissioned Programs News & Current Affairs Fiction/Non Fiction Articles Film Music Private Albums Delivery  Cinema Halls Home Videos (Video Cassettes, VCDs, DVDs,) Cable Terrestrial DTH Public Broadcaster FM Channels Newspapers Magazines Books Cassettes CDs Mobile Phones Internet ---------- Straight line denotes Traditional Delivery Mechanisms - - - - Dotted line denotes Converged Delivery Mechanisms Source:PwC Analysis

11. July 2005 Filmed Entertainment Current Size US$ 1256 mn Estimated growth rate over next 5 years 18% CAGR Source: Industry estimates & PwC Analysis

12. July 2005 Filmed Entertainment-Key Growth Drivers Emergence of crossover films High Return on investment  immense international appeal  low costs of production In 2004 alone, estimated five Bollywood releases generated more than US$ 2 million each in the UK and US.

13. July 2005  Increasing importance of regional cinema  International cinema dubbed in Indian languages  Growth of multiplexes  Growth in cinema advertising  Merchandising/Promotional Material Revenues Filmed Entertainment-Key Growth Drivers

14. July 2005 Television ã IndiaThird largest television market in the world  Estimated growth rate of18% CAGR TV industry on an overall basis for next 5 years ã Total No. of TV households over 119 mn ã Total No. of TV channelsover 350

15. July 2005 Source: Industry estimates & PwC Analysis Television Industry- Revenues

16. July 2005  Pay Revenues - primary growth driver for subscription revenues  Growth in number of TV households  Low penetration of multi-channel colour TVs in rural areas  Growth in the television software segment Television-Key Growth Drivers

17. July 2005 Music Industry Source: Industry estimates & PwC Analysis F- Forecast;E-Estimate

18. July 2005  Growth in non-film albums and music videos  Talent Nurturing  FM radio synergies  Shortening shelf life of music  Organised music retailing  Unbundling of the album concept  Product expansion  Overseas potential Music Industry- Key Growth Drivers

19. July 2005 Radio Industry Source: Industry estimates & PwC Analysis F- Forecast;E-Estimate

20. July 2005  Local Advertising  Lower share of Adspend  Satellite Radio  Community Radio Radio Industry-Key Growth Drivers

21. July 2005 Print Media Source: Industry Estimates & PwC Analysis F- Forecast;E-Estimate

22. July 2005 Newspaper Industry Source: Industry Estimates & PwC Analysis F- Forecast;E-Estimate

23. July 2005 Magazine Industry Source: Industry Estimates & PwC Analysis F- Forecast;E-Estimate

24. July 2005  Booming Indian economy  Content  Government initiatives  Emerging Digital Technologies Newspaper and Magazine Publishing Industry Key Growth Drivers

25. July 2005  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India Entertainment & Media

26. July 2005 PlayersProductionDistributionExhibition Zee Telefilmsaa Adlabs Filmsaaa AVM Productionsaaa Mukta ArtsaaX Rajshri ProductionsaaX Shringar GroupXaa PVR CinemasXaa Pritish Nandy Communications aaX Indian Film Industry a a Present X Not present

27. July 2005 Indian Television Industry  CNBC-TV 18  Discovery  ESPN Star Sports  Hathway Cable  MTV India Key Players  STAR India  TEN Sports India  Walt Disney  Turner International

28. July 2005 Indian Television Industry  Doordarshan  Balaji Telefilms  Eenadu TV  NDTV  Nimbus  Padmalaya Key Players  Sahara India  Sony Entertainment  Sun Television  UTV Software  Zee Telefilms Limited

29. July 2005 Indian Music Industry  Universal Music India  Saregama India (HMV)  Venus Records  Sony Music Entertainment  BMG Crescendo  Virgin Records  Magnasound Key Players

30. July 2005 Radio All India Radio (AIR) Planned, developed & operated by Ministry of I & B. Network of 214 broadcasting centres covering 24 languages covering 91.37% of the area serving 99.13% of the Indian populace Private FM Broadcasters Entertainment Network India Radio Today Radio City Radio Mid – Day West India FM Radio

31. July 2005 Print Media  Times of India  Hindustan Times  The Hindu  The Telegraph  Indian Express  Mid-Day Key Players  India Today  Readers Digest  Outlook  Femina  Filmfare  Stardust NewspapersMagazines

32. July 2005  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India Entertainment & Media

33. July 2005 Cable TV Households 50 Million TV Households 119 Million Total No. of Households 200 Million Source: Industry Estimates & PwC Research Cable TV Households- untapped potential Low Cable penetration levels indicate huge untapped potential Rural areas to spur growth

34. July 2005 Television  Television Subscription Current sizeUS$ 1667 mn  Television Advertising Current sizeUS$ 1067 mn Source: Industry Estimates & PwC Research

35. July 2005 Growth of multiplexes  Platform to screen movies appealing to niche audience  Have brought back Indian film viewers to movie halls  Smaller screening options

36. July 2005  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India Entertainment & Media

37. July 2005  Expanding Indian Economy The India Advantage  Demographic Advantage – 30 to 40 million people joining middle class every year  Strong job creation in new economy sectors  Change in consumer mindset due to global exposure  Untapped rural potential

38. July 2005  2001Industry status to Films The Policy Advantage  2004Announcement of Broadband Policy  2001Announcement of DTH guidelines  Reduction in import duties  Move towards Co - production treaties Key Government Initiatives

39. July 2005 Number of raids conducted Source: Indian Music Industry Enforcement efforts against music pirates

40. July 2005  Advertising & Film Sector Upto 100% on automatic route FDI Policy  Print Media - Upto 74% in Indian entities publishing scientific/ technical & speciality magazines/periodicals/journals - Upto 26% in Indian entities publishing news & current affairs newspapers & periodicals  Broadcasting Sector No restriction on foreign equity in proposals related to software production, marketing of TV rights, air times, advertisements etc.

41. July 2005  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India Entertainment & Media

42. July 2005 Contact in India Office of the Minister for Information & Broadcasting Shastri Bhawan New Delhi 110 001 Tel0091 11 2338 4782/2338 4340 Fax0091 11 2378 2118

43. July 2005 Contact in India Secretary, Ministry for Information & Broadcasting R.No. 655, A Wing, Shastri Bhawan New Delhi 110 001 Tel0091 11 2338 2639 Fax0091 11 2338 3513

44. July 2005 Contact in India Confederation of Indian Industry (CII) The Mantosh Sondhi Centre 23, Institutional Area Lodi Road New Delhi 110003 India Tel: + 91 11 2462 9994-97 Fax:+ 91 112461 5693 Email: c.banerjee@ciionline.org