Launching a sport channel in India - Media and Entertainment Industry

1. 1
June 2011
Sports Channel Business Proposal
Sports Channel - Business Model
Prepared by me in 2011
Manish Poddar
Manish.wbs@gmail.com

2. The Growth Engine of India
The largest youth
population in the
world; ~ 66 % of the
total population
(more than 808 mn)
is below the age of
35.
Population
1.18 trillion
An enduring and
domestic
consumption led
Economy
Media & EntertainmentIndian Economy
Rising
disposable
income and the
propensity for
households to
spend on
entertainment
activities
India is only the
14th largest E&M
industry and set
to become a 100
billion USD
Industry in next
few years
Television and
print dominate the
advertising
segment in India,
with over 80%
share of revenue
Emergence of
alternate
sporting ICONS
beyond cricket
India to be hottest
Global Sports
Market
Sports
IPL success has
shown other
sports the way
encash to the
goldmine

3. 3
516
652
1275
211
241 257
297
341 389
455
533
630
2007 2008 2009 2010 2011P 2012P 2013P 2014P 2015P
Total Industry size Television Television Industry
INRBn
 Total size of Industry of M&E is INR 650 Bn in 2010
and expected to be doubled ( INR 1275 Bn in 5
years time
 Television Industry accounted 45% of the total
M&E Industry size in 2010 and expected to be
doubled (INR 630 Bn) in 5 years time & likely to
represent 49% of the total M & E industry in 2015.
M&E & Television Industry
Television Industry
Has shown continued
Growth in reach
 India is the world’s third largest TV market with almost 138 million is growing optimism in
the industry. There will be great demand TV Households (HHs) next to China and USA.
 Has grown tremendously over the last two decades, with an average growth rate is double
digits.
 Added almost 100 million viewers in 2010 to reach 600 million viewers and crossed the
550 channel mark from 460 in 2009.
 New Players are entering the market with niche offerings like food channels and more
channels in English Entertainment Space.
 Viewers are able to access niche content easily on DTH platform even in smaller markets.
 Cable & Satellite (C&S) penetration has reached close to 80 % with the soaring growth
show by the DTH platform.
 New Technologies like (HD), STBS and delivery platforms like mobiles are rapidly evolving,
creating further opportunities for innovation and growth.

4. 4
Opportunities
 India is one of the largest media consuming markets in the world; however, the size and scale of industry is limited
when compared with global M&E Industry.
 Majority of companies are still small in size or profits when compared to other growing sectors like Retail, Telecom
or Information Technology. However, the medium has many drivers in place for growth in the years ahead.
 India is the only country in the world with 88 million 2 non TV HHs indicating the potential for growth in the
market.
 There are still more than 250 channels awaiting approval as there is growing optimism in the industry.
 There will be great demand for satellite bandwidth with the introduction of HD channels, the HITS platform,
existing DTH channel expansion plans, new channel launches, and VSAT services.
 The consumers in India are less amenable to paying for content, compared to counterparts in other countries
representing a gap which can be addressed.
 In creating further opportunities for innovation and growth. advertising, only 10 percent of advertisers on print
advertise on television currently and a portion of the remaining 90 percent still could be tapped for further growth
of the medium.
M&E & Television Industry
4.83
3.33 3.3 3.02
2.6 2.55
US Philipines Malaysia Indonesia China India
Average Time Spent Consumer is King
 Indian consumers pay USD 3.5 per month on pay
TV compared to USD 15 by Americans as our
nation has traditionally not been used to paying
for media content.

5. 52010 2011 2012 2013 2014 2015
68
67 66 64 60 56
5
6
8
12
18
26
28
38 48 56 64 71
0.5 0.8 1.3 1.8 2.3 2.8
Analog Digital DTH IPTV
 The penetration for digital cable and DTH is
expected to increase at a much faster rate than
was anticipated earlier.
 The total numbers of DTH subscribers to be
added in 2011 are expected to be ~10-12
million as the industry is adding almost a
million subscribers each month.
 MSOs have plans to make large investments
over the medium term in setting up digital
network infrastructure and acquiring interests
in smaller MSOs and LCOs
122 140 158 169 194 222 253 298 350 416
61 71 83 88 103 119 136
157
183
214
183 211
241 257
297
341
389
455
533
630
2006 2007 2008 2009 2010 2011p 2012p 2013p 2014p 2015p
Subs rev Ad rev Total
Growth in Revenue
Growth in Digital Subscriber
 The share of broadcasters in the total
subscription pie is expected to go up from the
current levels of 21 percent of the overall
subscription revenues in 2010 on an average
across platforms to 30 percent in 2015 .
 The share of subscription revenues in the top
line of the broadcasters is expected to
increase from the current level of 28 percent
to 36 percent by 2015.
Facts
Facts
Expected to perform well in the next five years

6. Growth in the number of TV Channels
Introduction
Source: TAM, Other include channels which are not captured by TAM
UTV Action
TVI Discovery Turbo
In Mumbai FOX, FOX Crime
Sun -2 Star World HBO Delhi Aaj Tak Baby TV
Raj -2 Star News Star Gold DD Urdu Nat Geo HD/ Wild/
JJ TV Surya TV B4U Makkal TV Adventure/ Music
GEC AXN Sun News Manorama News
E TV Punj World Neo Sports
Gemini DD Sports Colors
PTV FTV NDTV Imagine
Yes Alpha TV 9X
DD1/2 ATN DD4 - Discovery CVO Ani Plan ET Now
DD Reg Zee TV 16(Reg) Sony Vjjay TV Jaya TV Warner Brothers
Cable Star Plus Asianet ESPN TNT Raj+ Lumiere Movies
CNN BBC World Sun Tv Jain TV NEPC Home TV ATN Ben Large number of
Prime Sp DD (Info) Udaya TV ABNI NBC NGC Awaaz Regional GECs
MTV Money TV CNBC 10+ ETV NDTV Profit and news
Venus Aastha Zoom channels
Zee Cinema Gurjari Star One
El TV Lashkara Hungama
NDTV 24X7 Pogo
NDTV India
5 11 13
29
55
66
75
130
170
200
263
308
363
461
550
0
100
200
300
400
500
600
1991 1992 1993 1994 1995 1996 1999 2000 2002 2004 2005 2006 2007 2009 Aug-10
Growth

7. 7
Content Provider Broadcaster
Content
Aggregator or
Distributor
DTH
IPTV
MSO LSO
User
Broadcasters
550 Channels
Broadcasters and MSOs losing in a big way due to non addressability in Analogue cable system
Channel
Aggregators
Distribution
Platforms
Cable
DTH
7 Operators
MSOs
6000
LCOs
60,000
Pay
TV households
Mediaries in
Value chain
No
intermediaries
In the value
chain
Revenue
Mix
Revenue
Mix
Revenue
Mix
Revenue
Mix
Advert
65%
Sub
35%
Advert
65%
Sub
35%
Others
5%
Carriage
/placement
50%
Sub
40%
Others
10%
Sub
100%
Approx 66% of total pay TV household
End consumers not traceable hence the system suffers from massive
underreporting (approx 85%) of subscribers by LCOs
Broadcaster/MSOs suffer hefty loss of subscription revenue
Digital Analogue
End consumers
traceable hence
fair distribution of
subscription
revenues
End consumers
traceable hence
fair distribution of
subscription
revenues
Indian Television Industry Value Chain

8. 8
Broadcasters – Channel Strategy- MSO
 For a broadcaster dependent on advertising revenue, ensuring reach is critical because higher
reach implies greater access to the subscriber base – thereby providing an opportunity for the
channel to improve its ratings.
 Carriage and placement fee provides the broadcaster access to an MSO’s network.
 Due to the bandwidth constraints in the analogue transmission mode, the MSO “allocates”
certain frequencies to the highest paying channels - phenomenon can be interpreted in simple
economic terms as a “demand-supply” mismatch.
 With supply remaining unchanged at around 80 channels and the total number of channels
having risen steadily to around 550 – carriage fee reflects the entry barrier posed by analogue
transmission.
 Lower Carriage Fee
o Certain channels that have a steady demand in the market may pay lower carriage fee
o The composition of the bouquet that the channel is part of and the relevance of that
bouquet to the MSO.
 Higher Carriage Fee
o a genre has high competition amongst channels (and new channels continue to enter the
market), then carriage fee is likely to be higher for that genre- because competition
creates pressure on the number of frequencies allocated by the MSO to any particular
genre. It has been observed that carriage fee is a phenomenon predominantly observed
in metered markets.
 The key parameter in calculating market shares in the case of broadcasters is the channel’s Gross
Revenue Point, which takes into account both its reach and viewers’ stickiness.
 A prime slot placement of a channel enables good reach, while good quality content ensures
stickiness or viewer loyalty. Prime slot placement is particularly important for mass viewership
channels (e.g. GECs) to be able to sell advertising slots.
Decision
Criteria
For
Carriage
Fee
Rationality

9. 9
Industry Practice - Placement Strategy
UTV Channel:
 FTA kind of arrangement with MSOs whereby UTV does not charge subscription fee from MSO , therefore,
does not pay carriage fee
Placement Strategy adopted by Present Broadcasters
Bouquet:
Broadcasters form a bouquet of channels and or become part of a bouquet to pay lower carriage fee.
Newer Channel:
 Considering that a brand new channel will have to pay at least four times.
 A channel can also mix and match its repertoire to optimize reach and cost. If a broadcaster signed a new deal for
its presence on S-band, it would have paid Rs 74 crore a year for the pan-India presence between October 2010
and February 2011. For UHF-bands, that figure dropped to Rs 46 crore. However, no broadcaster opts for a 100
per cent penetration and 60-70 per cent penetration is good enough for a national footprint. Therefore, the
channel would have paid between Rs 44-51 crore for a 60-70 per cent penetration. That leaves some more room
for the MSO to accommodate more broadcasters. For instance, a music channel launched last year, got 3 per cent
of S-band and 74 per cent of UHF in the Hindi speaking markets for Rs 23 crore for a year.

10. 10
Broadcaster- Sports Channels In India
Sports are doing very well in India, which gives the impetus for broadcasters to explore content for such niche
channels.
Industry Outlook
Sports Marketing, which includes both marketing and sports events and sponsorships to market both teams and non-sports
products, is today a business worth INR 20bn in India (out of which cricket alone accounts for INR 18bn).
Growing Viewership and Revenue
With the growth in sports viewership, the number of advertisers in the sports genre grew at a CAGR of 32% from 2005-2007.
Consequently, the size of the sports genre in terms of advertising revenues stood around INR 7bn in FY2008 as against INR 5bn
in FY2005.
Emergence of other sports
The market is slowly moving from one-sport market towards multi-sport market. The major factors for the change is launch
of several new sports channels in India, acquiring and marketing properties across other sports, internationally and Indian
sportsmen doing well internationally in sports other than cricket. For instance, Indian now has its own Formula 1 team and
Grand Prix is expected to make its debut in India in 2010 or 2011.
Profitable Venture
New pay TV channels have carved out for themselves profitable market positions on the back of sports content which in
turn has driven up TV rights values
Agencies and Content
For the agencies representing and investing in rights these are boom times with sports content increasingly seen as
essential to driving commercial revenues.
DrivenbySportRights
Worldwide
Sports broadcasting industry is driven by subscription The growth of 13% in market size which was expected for 2010
revenues, and the same model is expected to be seen in India.

11. 11
Sports Channel Revenue Potential
Genre Viewership % Ad Revenues Power Ratio (Ad % /Viewership%)
English General News 0.40 3.56 8.95
English Business News 0.19 1.15% 8.06
Sports 3.17 16.15% 5.1
Command higher ad revenues in relation to their viewership.
 English News and Sports have very high power ratios compared to mass genres like GEC, Movies, etc. owing to
advertiser's preference for quality of reach in terms of focused male audiences .
 Ranked 3rd in terms of Power Ratio.
Indonesia South Korea India Hong Kong Singapore Malaysia UK USA
Sports 8%(11) 9%(22) 2%(13) 17%(42) 13%(20) 9%(14) 5%(34) 11%(75)
Share of genres for different countries (number of channels)
 Comparing the Indian television industry with
other countries, India lags behind others on the
number of sports.
 Sports is a powerful category but the target
audience is largely male and the viewership is
seasonal depending on the event calendar
3.8
3.2 3.3
2.8 2.9
2006 2007 2008 2009 2010
Viewership share (%) by Sport

12. 12
DD Sports
 DD Sports was launched on March 8, 1999 and become the only ‘Free-To- Air’ Sports Channel in the
country
 Domestic: Besides showing live important sporting events like cricket, football, tennis etc., DD Sports
showcases Indian sports including Kabaddi, Kho-kho etc.
 International: In addition to the international sporting events, important national tournaments of
hockey, football, athletics, cricket, swimming, tennis, badminton, archery, and wrestling are also
telecast.
 Other Programmes-Also telecasts news based programmes, sports quiz and personality oriented
shows.
Ordinance on
sharing sports
feeds with DD
&AIR
 Makes it obligatory for broadcasters to share live telecast signals of sports events without their
advertisements with the public service broadcasters like the Doordarshan and All India Radio by
entering into a commercial agreement
Doordarshan Sports Channel

13. 13
Ten Sports Channel
 Taj Television Limited is a full-service television concern, based in Dubai Media City with eight
regional offices across the sub-continent. Taj was established in January 2001, and is owned by
Zee
 Channels: Its portfolio consists of the Ten Sports, Ten Cricket and Ten Action+ channels, digital
studio facilities and integrated transmission services for various broadcast clients.
 Viewers: Ten channels are the most watched sports channel by far across the sub-continent.
Recent viewing data shows that the channel enjoys over 50% share of viewing of sports
channels in India and the pattern is repeated across the region.
 Employees: Taj Television Limited employs nearly 150 highly skilled and experienced
professionals from all over the world.
 In India: All the channels from Taj Television are distributed exclusively to cable operators
in India by Taj Television India Pvt. Ltd and are available with the leading DTH platforms.
Figures (In lacs)
FY 2007-08 2008-09 2009-10
Gross Income 817.3 1463.1 1786.31
y-o-y growth 79% 22%
Expenses (including Dep.) 1244 1293.3 1731.05
y-o-y growth 4% 34%
EBIT -231 169.8 55.26
as a % of Gross income -28% 12% 3%
3 years
Financial
Figures
Taj Television
(India) Private
Limited
 The distribution company shall become 100% subsidiary of Zee Entertainment Enterprises
Limited.
 Rights: The company has exclusive rights to distribute various channels owned by Taj TV Ltd,
Mauritius including for ‘on-air’ advertisement on various channels.
 Revenue from distribution comprises of distribution of Ten Sports and Zee Sports channels in
India

14. 14
 NEO Sports Broadcast Pvt. Ltd owns and operates two channels i.e. NEO Cricket
 The number sports channel as per the annual half hour cumulative ratings for sport channels,
TAM viewership data for calendar year 2008, 2009 and 2010 (Source: TAM People Meter Systems)
and NEO Sports – the dedicated sports channel.
 NEO Sports offers sports like Football, Tennis, Golf, Motor sports, Badminton to the Indian sports
lovers. This includes German Bundesliga football league, US PGA TOUR, ITF Davis Cup and Fed
Cup events, WTA TOUR Women’s Tennis, NASCAR , BWF among others.
 NEO Cricket is a cricket centric TV channel and currently broadcasted in more than 25 countries
covering Middle East, South East Asia and North America including USA and Canada .
Neo Sports Broadcast Pvt. Ltd
Figures (In lacs)
FY 2008-09 2009-10
Gross Income 35370 40892
y-o-y growth 16%
Expenses (including Dep.) 54415 74671
y-o-y growth 37%
PBT -19044 -33779
as a % of Gross income
2 years
Financial
Figures
Bouquet
Strategy
 The One Alliance, the distribution company of Multi Screen Media and Discovery, has signed up
Neo Sports Broadcast for the pan-India distribution of its two channels - Neo Sports and Neo
Cricket.
 The One Alliance will primarily be focused on managing the distribution of the two Neo channels
on analog cable networks.
 Neo Broadcast's in-house distribution team will now be reassigned to ensure digital connectivity
(principally with direct-to-home operators) grows exponentially.

15. 15
FY June-2008 June-2009
Gross Income 81724 66551
y-o-y growth -19%
Expenses (including Dep.) 72447 57804
y-o-y growth -20%
PBT 9277 8747
as a % of Gross income 11% 13%
Figures in (Lacs)
 ESPN STAR Sports is a 50:50 joint venture between two of the world's leading cable and satellite
broadcasters.
 As Asia's definitive and complete sports broadcaster and content provider
 ESPN STAR Sports combines the strengths and resources of its parent companies – Walt Disney
(ESPN, Inc.) and News Corporation Limited (STAR) – to deliver a diverse array of international and
regional sports to viewers via its encrypted pay services.
 Paralleled variety of premier live sports from around the globe 24 hours a day to a cumulative
reach of more than 310 million viewers in Asia.
 ESPN STAR Sports has 19 networks covering 24 countries, each localized to deliver differentiated
world-class premier sports programming to Asian viewers.
 ESPN STAR Sports’ top quality programming and world-class presentation is beamed from the
company's 73,000 square-foot state-of-the-art production facility and earth station in Singapore.
2 years
Financial
Figures
ESPN Star Sports
 ESPN STAR Sports’ bouquet of networks including ESPN, STAR Sports & STAR Cricket
Bouquet
Strategy

16. 16
Pricing of Sports Channel
ESPN Star Star Sports Star Cricket Zee Sports Ten Sports Neo Sports Neo Cricket
Bouquet (Average Price) 11.13
Alacarta 33.13 33.13 16.05 35.45 26.6
Commercial 80 80 75 75
Commercial (Public Viewing) 2000
Bouquet 5.00 5.00 5.00 5.35 5.35 5.35 5.35
Commercial
Bouquet (Average Price) 5.57
Alacarta 16.57 16.57 4.01 17.73 13.3
Commercial 80 80 75 75
Commercial (Public Viewing) 2000
Bouquet (Average Price) 5.57
Alacarta 16.57 16.57 4.01 17.73 13.3
Commercial 80 80 75 75
Commercial (Public Viewing) 2000
44.17
Non-CAS Area
41.45
22.09 41.45
The Broadcasters will offer the same bouquets to the IPTV operators as are being offered by them for non-CAS cable distribution
and DTH Operators at 50% rate of Non-CAS
8333.3
8333.3
8333.3
CAS Area (Digital)
DTH ( Based on G
22.09 41.45
The Broadcasters will offer the same bouquets to the DTH operators as are being offered by them for non-CAS cable distribution
at 50% rate of Non-CAS
IPTV
Bouquet A-la-Carte

17. 17
Sport Channel Bouquet
Broadcaster Bouquet The One Alliance Zee Turener Star Den Network
Coverage National National/Regional National/ Regional
No. of Channels More than 18 31 21
Sports Channel Included Neo Sports Zee & Ten Sports ESPN & Star Sports
BroadcasterBouquet Sun Distribution ETV UTV Global
Coverage Regional Regional National
No. of Channels 22 11 4
Opportunities to form aBouquet
Sun Distribution, ETV and UTV Global do not have sports channel
in their Bouquet
Sports Channel Bouquet and Alliance Opportunities

18. 18
Budget for Sports Channel – Outsourcing Model
 Expected Budget to launch a sport channel is
INR 290 crores. This does not include the
following:
o Due to variability: Live production/
content expenses is not included in the
below list, which will be extra.
o The Cost of buying rights for sports event
is not considered and no budget is
prepared as rights of sports varies from
each other.
 In an outsourcing model - Broadcast
operation setup and technology support will
be provided by third party under three years
of contract.
 The company will have to rent office space,
hire professionals and pay carriage fee to
MSOs.
Limitations
 For personnel expenses, office rental and
miscellaneous – 15% y-o-y increase is assumed
 Carriage fee INR 30 crores/year
Rs 325 crores (All expenses
are highly variable)
Items
Fixed Cost Year 1 Year 2 Year 2
MIB Security Deposit (Govt. Fee) –Uplinking and Downlinking (The
license is for 10 years) 10.1
MIB Consultancy Charges 8
WPC Charges 2 2 2
NOCC Charges 1.2 1.2 1.2
SD/ HD Studio, PCR, MCR and Broadcasting Setup, Live Production
units –DSNG/OB Vans (Excluding Building, Land etc.) 3000
Total 3021 3 3
Variable Cost Year 1 Year 2 Year 2
Man Power 72 72 72
Teleport Service (Up-linking Charges with Bandwidth on MPEG-4) 144 144 144
DSNG Bandwidth Charges 120 120 120
Lease line to Teleport (Reliance, Bharti, VSNL) 48 48 48
Admin and Core Reporter Local Expenses 36 36 36
Light, generator, UPS and Other Expenses 24 24 24
Ground Distribution ofthe channel in Delhi 250 250 250
Ground Distribution ofthe channel in Mumbai 300 300 300
Ground Distribution ofthe channel in Chennai and other South 400 400 400
India Distribution in DTH Platform 500 500 500
Total 1894 1894 1894
Company Expenses Year 1 Year 2 Year 2
Personel expenses -Marketing, Admistration, Finace and Senior
Management 900 1035 1190
office rental 1000 1150 1323
Marketing Expenses 1000 1150 1322.5
Miscellaneous 1363 1568 1803
Carriage Fee 3000 3000 3000
Total 12178 9800 10535
Total Budget for 3 years
Total Budget for 3 years
Approx. / Actual Charges
32513
INR 325 crore

19. 19
Department Personnel Number
PR 2
Brand Director 1
GM 1
Brand Manager 1
Support Staff 1
5
Airtime Sales Delhi 1
Mumbai 1
Kolkata 1
Bangalore 1
Support Staff 1
Assistant 1
Secretary 1
2
Total 17
Marketing
Corporate Affairs & International Operation
Number of Personnel
4
Department Personnel In cities
Head of Distibution 1
Channel Head 4
Technical 3
7
Delhi
Mumbai
Bangalore
Kolkata
Ahamedabad
Hyderabad
Kanpur
Ludhiana
Jaipur
Indore
Total 25
Representa
tive Office
Assistant
Distribution
Regional
Offices
Department Personnel In cities
Production Head 1
Technical Head 1
Broadcaster Operation Head 1
Headline including
Broadcasting Operation
20
Head Studio Production 5
Assistant 5
Support 5
Total 38
Production & Broadcast Operation
Departments Number
Finance Accounts 1
Company Sectary 1
Personnel 10
HQ 10
Total 22
Finance Accounts
Departments Number
Head 1
Admin 3
Legal 3
HR 4
Total 11
General Administration
Total numbers required: 121
CEO
COO Secretary
Secretary
Proposed Organogram Structure
Production &
Broadcast Operation
can be outsourced

20. 20
Permission for Uplinking a Sports channels
Eligibility
Criteria
 No FDI Limit : The applicant company, irrespective of its ownership, equity structure or
Management control, would be eligible to seek permission
 Net Worth: The Company should have a minimum Net Worth as prescribed below:
 Period of Permission: Permission shall be granted for a period of 10 years.
 Fee:
o The applicant will pay an amount of Rs. 10000 as processing fee
o After being held eligible, the applicant company shall pay a permission fee at the rate of Rs. 5
Lakhs per channel.
 Special Conditions/ Obligations
o The applicant company shall obtain registration for each channel, in accordance with the
procedure laid down under the Downlinking Guidelines notified by the Ministry of
Information & Broadcasting separately.
o The applicant company permitted to uplink shall operationalize the channel within a period of one
year from the date the permission is granted by the Ministry of I&B; failing which the permission is
liable to be withdrawn, after affording an opportunity of being heard.
item Required Net Worth
Single TV channel Rs. 1.50 Crore
For each additional TV channel Rs. 1.00 Crore

21. 21
 The sports channels/sports rights management companies having TV broadcasting rights shall with immediate effect share
their feed with Prasar Bharati for national and international sporting events of national importance, held in India or aboard,
for terrestrial transmission and DTH broadcasting (free-to-air) under the following conditions:
o The events of national importance shall be determined by the Ministry of Information & Broadcasting in consultation
with Ministry of Sports & Youth Affairs, Prasar Bharati and the concerned sports channels/sports rights management
companies. In case of cricket events, these shall include all matches featuring India and the semifinals and finals of
international competitions
o The above conditions shall apply to all future events including those covered by existing contracts of broadcasting
rights. However, in the case of cricket events whose broadcasting rights have been obtained by sports channels/right
management companies prior to the issue of the notification in the matter the rights holders will be obliged to share the
feed for all matches featuring India and finals of international competitions.
o Prasar Bharati shall transmit the feed, free to air, on its terrestrial channel and carried through the terrestrial
network and/or the satellite/DTH mode.
o The marketing of the events’ rights (terrestrial as well as satellite/DTH) will be decided through mutual negotiations
between Prasar Bharati and the rights holder. The marketing rights should go to the party which offers to maximize the
revenue.
o Revenue sharing formula of 75:25 in favour of rights holders without any minimum guarantee/opportunity cost, should
be applied.
Compulsion on Sports Channel on feeding with Prasar Bharati

22. 22
General terms
and conditions
Guidelines for uplinking from India
 Satellites Choice: The company can uplink either in C or Ku Band. Uplinking in C Band would be
permitted both to Indian as well as foreign satellites. However, proposals envisaging use of Indian
satellites will be accorded preferential treatment. On the other hand, uplinking in Ku Band would be
permitted through Indian satellite only, subject to the condition that this permission is not used to run/
operate DTH service without proper license, to which separate guidelines apply. Satellite to be used
should have been coordinated with Insat System.
 The company shall comply with the Programme & Advertising Codes, as laid down in the Cable
Television Networks (Regulation) Act, 1995 and the Rules framed there under.
 WPC: The company shall comply with the terms and conditions of Wireless Operational License to be
issued by the WPC Wing, Ministry of Communications & IT.
Steps involved
in application
 Step 1: The applicant company can apply to the Secretary, Ministry of Information & Broadcasting, in
triplicate, in the prescribed format “Form 1.
 Step 2: Application will be sent for security clearance to the Ministry of Home Affairs and for clearance
of satellite use to the Department of Space (wherever required).
 Step 3: Demand draft for an amount equal to the processing fee after granting permission and sign an
agreement
 Step 4: Thereafter, the Company would be issued a formal permission to enable it to obtain requisite
license/ clearances from the WPC Wing, Ministry of Communications & IT or approach a teleport
service provider in case of TV channels/ uplinking by a Indian news agency.
 Step 5: The applicant will pay the licence fee and royalty, as prescribed by WPC Wing from time to
time, annually, for the total amount of spectrum assigned to Hub/Teleport station, as per norms & rules
of the WPC Wing.

23. 23
Constraints - Budget Planning
Advertising
Revenue
 Advertising Revenue is not considered to understand cash flow of the company because sports
channel advertising revenue vary from time to time depending up sports event.
 It also depends up programming structure of the company.
 Target audience
Programming
Content
 In the Budget, programming content cost is not included
 Programming cost depends upon the Broadcasting rights of sports acquired by Broadcasting
channel.
 Programming content cost of Sports channel are high .
Subscription
Revenue
 Subscription revenue is also highly variable and its depends upon the following
 Programming rights
 Tie-up with Distribution channel such as MSO and DTH
 Target Audience
Capital
Outlay
 Could be highly variable as expenses are subject to overall strategy of the company.

24. 24
Sports
Rights
Possible Strategy That Can Work
 New Sports such as GOLF, Formula 1, other niche sports are gaining popularity among people
in India
Bouquet
 Partnering with other big size bouquets will help the channel to penetrate in the regional and
national markets at a lower carriage fee.
Outsourcing
 Outsourcing non-core activities will reduce the cost. In the present budget, HR department cost
is included
Celebrity
Factor
 Big names (anchors/reporters, producers and executive producers) may be roped in the sports
channel to make it popular before its launching. Stories in print and web media may be pitched
to make it popular just before the launch.
Collaboration  Collaboration with foreign content provider or sport channels will help the company in content
management and availability.

25. 25
Thank you