Building digital brands in Media and Entertainment

Media and Entertainment - The missing link Work more like platforms than brands Restricted to one business A rudimentary category/ demographic view Legacy makes it difficult to leverage the digital opportunity

The core thought Huge opportunity to build brands in different well-defined consumer spaces Large segments that offer entertainment to specific consumer groups Travels across different related businesses Brands that stands for high quality entertainment and experiences

Many segments Indian History and Mythology

Weddings

Fashion

Health & well-being

Adult Comedy

Technology

And many others...

The first opportunity Huge opportunity in Indian mythology, folklore and history Many stories, many myths, long history Build a brand rooted in the Indian past A brand that stands for enlightened, evocative entertainment and experiences

Building a Brand Translate the past into entertainment STORIES, CHARACTERS, IP

Media - TV, film, publishing

Physical recreation experiences Digital

Retail/CP Education

The EPIC brand

The EPIC brand

Media - TV, film, publishing

Physical recreation experiences Digital

Retail/CP Education

Creating EPIC Stories The first step is to build a platform for the stories, IP and characters Building a digital video channel would be the most critical play This would primarily be a digitally distributed linear/non-linear channel

The Epic Channel

Trends and opportunity in TV •The Pay TV industry is expected to be over US$12.6 billion by 2015, about 34% will be advertising and the rest is subscription

•Digital distribution (Digital Cable, DTH, 3G/4G) is going to result in subscription

transparency and therefore lead the growth in TV over the next few years in India (99 million HH will be digital by 2015)

•Ad sales is growing across all genres, specifically the genres associated with adult males (expected growth 16%)

•Unlike other countries, India has a large opportunity in well-positioned genre specific television where costs are lower than GECs but advertising rates are not as low

•Opportunity to carve out a segment of viewers from GEC and News channels for a segmented proposition

•A fresh look at Indian history and mythology in an entertaining manner viz. fiction, animation, investigations, analysis, etc. shows potential

IPTV DTH Digital cable Analogue

Digital trends Analogue

Digital

116

33

168

20 87 126

58

84

29

33

69

99

42 68

0

44

57

84

0 2009

2010

Figs in million subscribers KPMG- FICCI 2011

67

66

64

60

56

2010 2011 2012 2013 2014 2015

Advertising by 2015 Television $ 12.6 billion

Advertising $ 4.3 billion GEC 995

Regional 1,078

Advertising 34% Subscription 66%

Movies 211

News 744

Sports 694 Info Kids 124 129

Music 177

At least a $200 mn size of prize in advertising itself KPMG- FICCI 2011

The Epic channel •Target : Fans of history and mythology as well as a general audience looking for meaningful entertainment

•Targeted reach Linear - all adults at 80+ on a weekly basis with a reach of 35% Digital - 50 million eyeballs (mobile/Internet)

•Content philosophy : an entertaining look at history and mythology with investigative stories, modern history (food, cinema, etc.) and a fresh look at mythology

•Initially in English/Hindi followed by language dubs in Tamil/Telugu

•Creation of unique IP

What the Epic channel is not •It is not an animation channel for kids •It is not an intellectual history channel •It is not a channel that does only mythologicals

It is a channel that offers meaningful entertainment based on our past

Content philosophy Stories and interesting points of history that engage and connect Historical Romance and Comedy that resonate Supernatural and stories that are mystical

New superheroes from mythology and history

Interesting story styled documentaries

Thoughtprovoking interpretations of history

AKBAR AND BIRBAL A modern look at the wittiest man of the Mughal era

Bollywood journeys

New

Live action show!

A sitcom based approach that take s a fun and vibrant view of life under Akbar during the Mughal era. An entertaining new take on the clev er Akbar-Birbal tales!

Historical and mythological films Historical and mythological Bollywood films every night at 7.30pm

26 half-hourly live-action episodes with interesting sets, costumes and situational humor

STORIES FROM THE MAHABHARATA

Immortal love stories

Love stories from history and mythology

An afternoon show targeted at housewives that has a look at the immortal love stories in Indian History and mythology. A soft, romantic feel with the drama that is inevitable in these stories...

A New Look! A fresh look at the innumerable stor

ies that

emanate from the Mahabharata. This

is an

animation show that targets olde r kids and families

52 Half hour episodes done in a distinctive style of animation! Explores stories that are hidden in the different branches of the epic.

26 hourly episodes shot in a magic realism style that give it a fresh look and makes it visually arresting...

• Shakuntala

• Devdas

• Laila Majnu

• Krishna-Radha

• Heer Ranjha

• Prithviraj-Sanyogita

• Sassi-Pounnu • Savitri-Satyavan • Salim-Anarkali • Usha-Aniruddha • Kannagi-Kovalan • Amrapali

Great Indian Inventions India's contribution to the world

The sparkling passion

This program explores some of the greatest discoveries or inventions that originated out of India in wide-ranging fields of science, art, religion, etc

History of Jewellery History of Jewellery in India A two hour special on the evolution of design and gems in Indian Jewellery. This special will be on at 12 noon on weekdays. Jewellery designs also available in The Epic Store.

13 one hour episodes that are shot in a documentary style with a single commentator who takes on an interesting journey across the country and across time.

• Ayurveda • Arthashastra (the science of administration)

• Astronomy • Medicine • Mathematics • Religion • Urban Planning • Docks

The Great Kings

The story of the greatest kings of India

Battles of time A look at great battles in Indian History

This program explores the story of the greatest kings of India. Their struggle for power, their battles, their lives, their faults as well as the impact they had on the country's history. It is a personal and close view of their influences and drivers

This 26 part hourly series explores the wars across the history of India including the famous battles between Alexander and Porus, Ashoka in Kalinga, Prithviraj Chauhan and Mahumad of Ghazni, the battle of Panopat, the battle of Plassey and many others. The series explores the strategies used, the leadership, the outcome and the historic impact.

13 one hour episodes that explore the origins of the kings, their trials and their accomplishments. Using historical paintings, role play as well as experts to communicate an engaging look at the history.

• Chandragupta Maurya • Ashoka the Great • Chandragupta II • Rajaraja Chola • Harshavardhan • Krishnadevaraya • Prithviraj Chauhan • Akbar • Shivaji Maharaj

• Tipu Sultan

Layers

Understanding the history of our cities

THE HISTORICAL IMPERATIVE

18 part series of an hour each that explores the story behind the big cities in India. What made them important urban centres, what drove their growth or decline, the culture, the personalities that define the cities. Food is an important component of this series as well.

Each episode explores the city and the important stories around the City with a VoiceOver/ roving camera technique that shows how the layers of the city were built.

• Mumbai

• Madurai

• Delhi

• Lucknow

• Kolakatta

• Allahabad

• Chennai

• Gauhati

• Hyderabad

• Kochi

• Bangalore

• Amritsar

• Pune

• Srinagar

• Ahemdabad

• Jaipur

• Patna

• Bhopal

Ram Guha's world view

A daily program at 10pm targetin g 35+ adult male that gives a historical perspective on current issues

Understanding current affairs Discussion and analysis of the historical view of current issues of today such as corruption with Ram Guha

Distributing a Digital Video Brand DTH/ Digital Cable Channel

Stories, IP

Android/ IOS Apps

Digital Mobile/web aggregators YouTube channel Own site with social overlay

Consider HD and 3D content

DTH/Digital Cable Distribution Plan

•Focus on building a differentiated channel in the minds of all cable and DTH operators

•Work with One Alliance to determine the right balance of reach for the portfolio

•Subscription revenue to be a key component of revenue Ratio of digital to analogue subscription - 80:20

•Minimal carriage fees restricted to Mumbai/Delhi

Advertising Sales •Position as a segmented entertainment channel for adults - focus on males 24-49

•Vertical ad sales organization (possible leverage area?) •Focus on building the brand and move away from the generic CPRP comparisons even on digital

•Consider ad-supported content a la lifestyle channels •As we scale to other businesses, offer integrated solution

Marketing Plans •Position the offering as a broad-based meaningful entertainment channel for adults

•Focus on a couple of key fictional programs for broader appeal

•For non-fiction, late day parts, focus on SEC A older males •After the first burst, avoid mass-media and use digital viral elements to spread awareness

•The key focus is to build the Epic brand as a brand that stands for history and mythology-based entertainment

Operations cost

•Cost of satellite connection to DTH/Digital cable boxes approx US 400,000 annually

•Apps + web maintenance US 250,000 annually •Need to have presentation and ad sales traffic software

Several options here as well in Harris, MSA focus

P&L assumptions Subscription/Ad sales is linear digital channel Subscription includes revenue in mobile/app aggregators/ YouTube/Netflix and Intl syndication is as linear channel or as content sales About 600 hours of original video content Ratings of about 40 going to 80 GRPS (year 3) in linear digital

Cash Reqmt and equity infusion Year 0

Year 1

Year 2

Year 3

Year 4

Cash reqmts

$ 9 mn

$ 12 mn

$ 3 mn

$ 2 mn

-

Equity infusion

$ 10 mn

$ 11 mn

$ 5 mn

-

-

The future of the

brand

Build the brand in television for a couple of years

By year 2, start exploring gaming and publishing in the digital space using the Epic brand

By year 3, explore licensing to consumer products and consider a store in the same style as the NatGeo/Museum stores

Consider leveraging the brand to specific genres of new age historical/ mythological films in Indian cinema

Eventually look at family recreation alternatives that allows for a complete experience of the brand

People Mahesh Samat has spent over 25 years in Marketing, Sales and General Management in J&J, Kellogg's and The Walt Disney Company. His assignments with J&J took him to Malaysia, Singapore and London.His last assignment was as the Managing Director for Disney in India, a position he held for four years.

Ram Madhvani has been directing advertising films, documentaries and feature films for over 25 years. He has won several prestigious awards in India and internationally including a Silver Lion at Cannes. His documentary on Amitabh Bacchhan, called the Everlasting Light has been globally acclaimed and was screened at the Lincoln Center

Risks •Cost inflation in Distribution and Production as a result of competitive moves

•Digitization of distribution does not speed up •Programming does not resonate with the target group •Regulatory changes in getting approvals, etc.

Benefits for Sony •Broaden the portfolio of already successful channels into new areas of media

•Establish an early presence in the digital space •Synergy possibility with music/regional/other channels that exist

•Professional management with experience in India with minimal fit issues

A broad-based entertainment brand with a strong, emotional consumer affinity

Other segments Indian History and Mythology

Weddings

Fashion

Health & well-being

Adult Comedy

Technology

And many others...

Scripps Networks Interactive