1. M&E industry in Asia Pacific
Building success in the digital era
September 2013

2. Page 2
Asia Pacific’s consumer engine is driving strong growth in ad
revenues — greatly benefitting M&E companies
1 APAC’s GDP will grow at a robust
CAGR of 7% over 2012–2017. It will
the largest region in terms of GDP by
2017.
2 Rising affluence and increasing
urbanization in APAC is expected to
fuel consumer spending on M&E.
3 APAC’s young population is driving
M&E consumption.
Asia Pacific (APAC) M&E drivers
Advertising revenues are growing in APAC
Source: Global Forecast Model: 2000-2017,‖ MAGNAGLOBAL, December 2012
$138 $144
$156
$168
$181 $196
$0
$40
$80
$120
$160
$200
2012 2013e 2014e 2015e 2016e 2017e
InUS$billion

3. Page 3
Digital holds a strong promise for APAC’s M&E industry
By 2017, digital will
account for 27% of
APAC’s total ad
revenues, up from 19% in
2012
Ad revenues in APAC, 2012 and 2017e
Source: Global Forecast Model: 2000-2017,‖ MAGNAGLOBAL, December 2012
► APAC’s digital ad revenues will grow at a CAGR of 15% during 2012–2017 to
US$53 million.
► In 2015, APAC will displace EMEA to become the second largest region by
digital ad revenues.
Digital
19%
Television
43%
Print
24%
Radio
5%
OOH
9%
Digital
27%
Television
43%
Print
17%
Radio
4%
OOH
9%
2012
Total = US$138 billion
2017e
Total = US$196 billion

4. Page 4
Greater investments in networks, proliferation of mobile devices
and growing online content is driving digital media consumption
Increasing investment in networks
► APAC accounted for 40% of the global network capex in 2012.
► Government support and subsidies are driving network expansion.
► Wireless subscribers will grow at a CAGR of 36% over 2012–2017.
Penetration of wireless broadband to reach 48% in 2017.
Proliferation of mobile devices
► Low cost and more capable mobile devices are being launched.
► Smartphone penetration will rise from 35% in 2012 to 68% in 2017.
► Tablet shipments will increase at a CAGR of 20% over 2012–2017.
Tremendous growth in online content
► Global and local M&E companies are increasingly investing in digital
content.
► Social media, online news, blogging and online TV are driving online
consumption.

5. Page 5
Challenges in monetizing digital media persist; companies are
exploring innovative methods to increase digital revenues
Key
challenges in
digital media
monetization
Proliferation of digital M&E
companies is increasing
competition for online ad
revenues
Mobile advertising yet to
gain traction as ROI
measurement remains a
challenge
Low propensity of consumers
to pay for online content such
as through subscription and
pay-per-use models
Offering premium and
customized content online,
such as international
TV shows, live sports
programs, video
windows and
HD content
Companies
providing
differentiated
value to
drive
monetization
Providing
interoperability
through access to
content across multiple
platforms and devices
Focusing on anytime
access by providing
on-demand movies,
TV shows and music
online
Driving user
engagement with
interactive programs,
share/ recommend
features and
implementing
‗freemium‘ models
Online gaming companies in China have successfully monetized their
offerings — 64% of Chinese gamers pay for online games each month

6. Page 6
Complex challenges of the digital era require M&E companies to
become more agile
An agile organization is utilizing…
The ability to ―fail forward,‖ fast
To learn from inevitable missteps,
fix them rapidly and move on
Cloud-based infrastructure
To enable lower-risk rapid deployment and
scalability, breaking organisational silos
Rapid resource or new product
deployment
To beat the competition to market in
response to new customer opportunities
Cutting-edge analytics
That identify — in real-time — new
customer-serving opportunities
Advanced social listening
Programs to keep on top of changing customer
sentiment
► M&E companies are facing a challenge to keep up with the rapidly changing
technologies, platforms and distribution models.
► To overcome these challenges, M&E companies need to be agile and shift from a
―make and sell‖ to a ―sense and respond‖ business model.

7. Page 7
For digital agility, M&E companies need to leverage technology
throughout their organizations
Digital leaders
forge the
agility vision
► 3rd-party cloud solutions allows for
rapid scale-up
► Cloud based, back office facilitates
real-time planning
Tools
► Creating a culture of innovation
is the top priority
► Centralised strategy,
complimented by local
execution
► Lack of skills is a key
obstacle to building and
maintaining cloud
► 43% of executives prioritise
―acquiring digital skills‖

8. Page 8
M&E companies are innovating their product and service bundles
to serve customers directly
► According to EY‘s survey of 522 global M&E executives, 84% of the executives
expect to have direct relationships with their customers by 2015
► Pillars of D2C: Personalized, differentiated, anytime/anywhere
64%
63%
61%
51%
Personalization
Anytime/anywhere access
Create unique content
Supplemental/premium content for a fee
How will you ensure customers pay for digital products?
Source: ―Digital Agility – NOW,‖ EY, June 2013
Percentage of respondents

9. Page 9
Digital leaders view customer engagement as a virtuous cycle
► D2C is more than engagement and distribution but about feeding customer
feedback into product and service innovation
► Data analytics, mobility, cloud and social are core enablers

10. Page 10
Thank you