Chairman's Message
Dear Shareholders,
We have grown stronger, better equipped and more confident to help shape the future of the Media and Entertainment industry nationally and internationally. This has happened, because we moved forward with a conviction in inspired leadership. Leadership is often misunderstood as being ahead of others. To me, it is first about being ahead of ourselves, fighting the odds, challenging conventions and doing things that we did not think were possible. Leadership is not a static process, but involves dynamic thinking and decisive action. The transformation, however, needs to surpass the speed of change in the external environment. Only then can leadership be sustained. This is what we consider our biggest challenge as well as our biggest success.
We believe inspired leadership is a transition from insight to innovation, fulfilling viewer expectations and also exceeding it, and above all setting trends for other industry players to follow. In a constantly evolving Media and Entertainment industry we continually need to align our business with technology breakthroughs, leverage the emerging market niches that are opening up as a result and respond to the aspirations of a new family of viewers with speed and efficacy.
The outlook on the world economy is looking up as most economies are on the way to recovery while India continues to be the focal point for innovation and investments in the Media & Entertainment sector.
The domestic Media & Entertainment industry has done exceedingly well, growing by over 11% from 
587 billion in 2009 to 652 billion in 2010. While the Indian economy looks set to reach double digit growth rates ahead, the Media & Entertainment sector is projected to grow at a CAGR of 14% to reach 1,275 billion by 2015. The Television industry has witnessed aggressive growth as this medium overshadowed all the other available media platforms. India is today the world’s third largest TV market with close to 138 million TV Households.
The digital drive led by the exponential growth of DTH has been an outstanding feature over the last few years making it possible for C&S to reach 80% of TV households in India. With the focus shifting towards addressable infrastructure there will be a speeding up of digitization in India going forward.
The industry has taken giant strides in technological developments which will benefit the convergence of media. Increase in internet penetration levels and growth of m-commerce in India are trends that will take shape in the future. The launch of 3G technology in the country along with multiple smart phone applications will considerably expand the market for digital media. Broadcasters will have to adapt their strategies and preparedness to exploit the potential presented by these changes in the business environment.
Another trend that can have far reaching implications for Broadcasters is the rapid change in consumer preferences as they search for content of their choice and relevance. Likewise with the increase in purchasing power across tier I and II cities regional and niche programming will gain prominence.
The advertising spends across media was 266 billion in 2010, contributing 41% to the overall industry revenues. With the addition of new channels and media platforms, advertising is expected to grow further which augurs well for broadcasters.
The Indian Media & Entertainment industry projections look positive. To sustain our leadership we have to be responsible and responsive to the constantly changing viewer preference.
Your Company entertains over 500 million viewers across 167 countries of the world. It is one of the largest producers and aggregators of Hindi programming in the world, with an extensive library housing over 1,00,000 hours of television content. We have to continually innovate to cater to this vast family of viewers, and create sustainable value for our shareholders.
We are also focusing on building scale across the media value chain and exploring cross-media synergies. Collaborations and partnerships are also on the radar as we strive harder to explore other frontiers. Your Company is also committed to enhance operational excellence through greater concentration on cost optimization. Although the global market has improved substantially, fiscal prudence has been one of the biggest lessons we have learnt from the recession.
The thrust on transparency in corporate governance and empowerment of people at all levels will remain a constant endeavor at ZEE. I would like to take this opportunity to thank all members of the ZEE family for their continuous encouragement and support. We will do everything possible to live up to your expectations.
Subhash Chandra
Chairman