The State of Electronic Media in Pakistan

Salman Danish Naseer CEO - Medialogic

WHO WE ARE

Medialogic is the only overnight TV Ratings provider in Pakistan Set up in 2006 to cater to the growing media needs of local industry Set up in collaboration with the 3rd largest Research company in the world GFK Panel consisting of approx. 4,000 individuals from 675 households in 9 cities Clients include ALL broadcasters and ALL major advertisers

PAKISTAN ADVERTISING INDUSTRY 2010

- TV continues to be the biggest medium. It is also the fastest growing! - Digital and Radio also growing while Outdoor coming down slightly due to removal of Billboards in Punjab

4% 13%

2%

Television remained on Top

Medium
TV

Growth During 2010 20% 8%

TV Print

51%
30%

Print Outdoor Radio Digital

Outdoor
Radio Digital

-10%
15% 50%+

 It took 26 years for the second channel to launch. In 2010, one new channel was being launched almost every 26 days!

1964

1990

2010

Key Development in Pak Electronic Media

PTV goes on air in 1964 VCRs and VCPs in late seventies/early eighties First Color Transmission in 1976

NTM is launched in the early nineties

PTV World is launched in 1998 Deregulation of Electronic Media in 2000 C&S penetration TV Audience Measurement Data 2007

CURRENT STATE OF AFFAIRS

Today a total of 81 local Channels are available In addition, around 50 foreign channels are being aired
News
Geo News ARY News Samaa Dunya TV Express News Waqt TV Dawn News News1 Metro One Business Plus Express 24/7 Aaj TV CNBC PTV News Din News Channel 5 Royal News KTN News APNA News Vash News Sindh News Khyber News City 42 Indus News

Entertainment
ARY Digital Hum TV Geo Ent Indus Vision A Plus* AKS * TV One PTV Home Alite * Sohni Dharti* Dharti Vibe Koh-e-Noor* AXN ATV PTV National

Sports
Geo Super Tensports

Children
Cartoon Net Nickelodeon

Music
Oxygene Aag Play ARY Music GKA Boom MTV Pakistan Oye K2

Fashion
Style 360

Movies
HBO Filmax Filmazia Starlite Silver Screen Film World*

Informational
Value TV Health TV*

Regional
Rohi TV KTN Punjab TV APNA Raavi Mehran Sindh TV PTV Bolan Waseb TV AVT Khyber Kook Kashish Awaz Sabz Baat

Religious Food
Zaiqa* Masala ARY Zauq
Madni ARY QTV Haq TV

WHAT PEOPLE WATCH

Foreign Entertainment Channels leading all categories followed by In-House cable Channels Only around 50% viewership being derived by Legal Content

Jan - Dec 2010

Inhouse Local Ent

14% 1% 6% 5% 1% 3% 14% 4%

18%

Foreign Ent

Movies
News

9%

Music Cooking Sports

25%

Children Regional Others

* Other included Fashion, Educational and Religious categories

WHEN DO PEOPLE WATCH TV

Peak Viewership moving later into the night highest viewership now at 21:30 Specialised programming developing Morning Slot viewership
26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

CURRENT STATE OF AFFAIRS Total Advertising Revenue for TV in 2010 was less than USD 175 Million (Rs. 15 Billion) Zero Subscription Revenue therefore entire Industry running after Ad Revenue
News Channels sensationalizing stories Entertainment Channels full of Ads

Despite the above, most TV Channels are in Loss!

THE CHALLENGES!
Pakistan market cannot afford 80+ TV Channels PEMRA needs to enforce regulatory framework
Limit the number of Licenses considering supply & demand Implement Subscription generation for Channels as well as Cable Operators Remove illegal channels which provide unfair competition to local channels

Content will drive Channel success and it is getting more and more expensive

The other big challenge for TV Industry is Distribution. Cable Operators can carry less than 100 channels while more than 130 are available

WHAT THE INDUSTRY NEEDS TO DO

Broadcasters must decide the following together with other stakeholders
1. How to co-exist with Cable Operators where both parties benefit from each other. This decision will rest mostly on how to increase subscription revenue and divide it. Work with PEMRA to stop airing of illegal content, thereby increasing viewership for legal content Limit New Licenses and create a market mechanism whereby new licenses may be awarded only if market grows Create self governed Editorial guidelines Improve local capacity for Quality production Invest in production infrastructure (Institutes, facilities, equipment)

2. 3. 4. 5.

Thank you!

Total Population Total Households TV Penetration (70%) Cable Penetration (50%) Average Subscription Total Subscription Rev.

180 Million ~25 Million ~18 Million ~ 9 Million Rs.50 Rs.11 Billion