MAM
Guest Column: 5 Trends lending the Power to Believe in Indian TV industry
The four pillars influencing the M&E sector are: Infrastructure, Government policies, Devices and Digital Technologies. Growing consumer demand is inviting policy support driving innovation and resulting in increasing investments in the sector.
There are 5 identifiable trends which lend television industry the power to dream and the analysts the power to believe. These are:
1. Positive Government Directives
2. Surge in Digital consumption
3. Consolidation the new buzzword
4. Rural India beckons
5. Data undergirds everything
1. Positive Government Directives
The M&E industry is expected to leap forward after a slow 2016. 2016 experienced two large government directives which affected the TV industry in negative ways for the short term.
Demonetisation came as a bolt from the blue and shaved off around 2% of ad revenues for the TV industry.
GST as another one to rationalise taxation across the M&E industry. While challenges abound initially, overall M&E industry is however a beneficiary for two reasons:
• Availability of input credits across the board and inclusion of entertainment tax within the ambit of GST are both positive developments.
• Formalisation of economy and widening of tax base will result in overall positive impact on GDP and thereby resultant positive impact on ad spends.
Both Demonetisation and GST will however give a further boost to GDP in the long run. Over and above these, Cable digitisation is already creating a paradigm shift as a game changer with ARPU on an uptrend post digitisation. Even as it is delayed, the same is expected to be completed in 2017.
2. Surge in Digital Consumption
The surge in digital consumption is compelling existing players to take a hard look at their business models. OTT VOD is emerging as a parallel platform along with TV broadcast. Entry of Netflix, Amazon Prime as global leaders; VOOT, OZEE, Hotstar and Sony Liv as broadcast network backed platforms; and Jio Apps and Airtel Wynk as telecom companies backed platforms joining the game with syndicated content offerings.
Development of a sustainable digital ecosystem will be required in the long run to address credible measurement and limited monetisation models.
3. Consolidation the new buzzword
Consolidation is gaining momentum across the value chain. Even as there have been less number of transactions, the good news is that they are of higher value. The three biggest ones are Dish TV and Videocon merger, Ten Sports acquisition by Sony and Reliance ADAG TV broadcast business takeover by Zee.
4. Rural India beckons
Post commencement of rural measurement by BARC, the big story has bene that of the high levels of TV viewing habits of rural India. This has resulted in higher advertising spending in rural HSMs, introduction of new FTA channels and realignment of content focus for mass tastes.
5. Data undergirds everything
Along with the data dividends of digital becoming visible, BARC viewership data has led to consumer analytics becoming indispensable thereby leading to changes in content, distribution and ad strategies.
Conclusion
The long-term future for the television industry is very robust with CAGR projections above 14% for both segments of ad revenues and subscription revenues. The Indian Media & Entertainment industry is on the ball with Television leading the charge.
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(Piyush Sharma, a global tech, media and entrepreneurial leader, created the successful foray of Zee Entertainment in India and globally under the ‘Living’ brand. The views expressed here are of the writer’s and Indiantelevision.com may not subscribe to them.) |
Brands
Sun Pharma to acquire Organon in $11.75 billion deal at $14 per share
Acquisition to create $12.4 billion pharma giant with global scale and biosimilars push
MUMBAI: Sun Pharmaceutical Industries Limited has signed a definitive agreement to acquire Organon & Co. in an all-cash deal valued at $11.75 billion, marking one of the largest cross-border pharma acquisitions by an Indian firm.
Under the terms of the agreement, Organon shareholders will receive $14.00 per share in cash, with Sun Pharma set to acquire 100 per cent of the company’s outstanding shares. The transaction, approved by the boards of both companies, is expected to close in early 2027, subject to regulatory approvals and shareholder consent.
The deal significantly expands Sun Pharma’s global footprint and strengthens its position across women’s health, biosimilars, and branded generics. The combined entity is projected to generate revenues of around $12.4 billion, placing it among the top 25 pharmaceutical companies globally.
Organon, which was spun off from Merck in 2021, brings a portfolio of over 70 products spanning women’s health and general medicines, with operations across more than 140 countries. Its established presence in key markets such as the US, Europe, and China complements Sun Pharma’s existing strengths and growth ambitions.
Sun Pharmaceutical Industries Limited executive chairman Dilip Shanghvi said, “This transaction represents a significant opportunity for Sun Pharma to build on its vision of reaching people and touching lives. Organon’s portfolio, capabilities and global reach are highly complementary to our own.”
Sun Pharmaceutical Industries Limited managing director Kirti Ganorkar added, “This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products.”
From Organon’s side, Organon & Co. executive chair Carrie Cox noted, “This all-cash transaction offers compelling and immediate value to Organon stockholders, while positioning the business for continued growth under Sun Pharma.”
Strategically, the acquisition gives Sun Pharma entry into the global biosimilars space as a top 10 player and strengthens its innovative medicines portfolio, which is expected to contribute around 27 per cent of combined revenues. The deal is also expected to nearly double EBITDA and cash flow, supporting long-term deleveraging and investment capacity.
Sun Pharma plans to fund the acquisition through a mix of internal accruals and committed financing from global banks, while maintaining focus on disciplined integration and operational continuity post-merger.
If completed as planned, the deal signals a clear shift in India’s pharmaceutical ambitions, from scale at home to leadership on the global stage, with Sun Pharma positioning itself as a more diversified and innovation-led healthcare powerhouse.
