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India’s video content budget up by 14% in 2017: MPA
MUMBAI: The video content expenditure for TV, movie and online video across India, Korea and Southeast Asia’s five biggest growth markets (Indonesia, Malaysia, the Philippines, Thailand and Vietnam) has seen a growth of eight per cent in 2017 to reach $10.2 billion, according to the 2018 edition of Asia Video Content Dynamics from analyst firm Media Partners Asia (MPA).
India’s video content budget soared by 14 per cent to $4.2 billion in 2017, purely driven by pay-TV. Content investment in India’s online video market is also growing rapidly, driven by competition among well-capitalised global and local platforms. This trend is expected to continue over the next three years.
India is followed by Korea, where investment in video content increased by seven per cent over the year to approach $3 billion. The investment in Korea is also starting to accelerate and will continue to do so over the course of 2018-19. Growth here will likely accelerate when China eventually lifts its ban on Korean dramas, movies and talent.
The biggest contributors to aggregate incremental growth in video content spend across the seven markets in 2017 were pay-TV (38 per cent) and online video (30 per cent).
MPA VP Stephen Laslocky said, “In general, content investment dynamics are favourable with content investment growing. Pay-TV content costs in the surveyed markets grew five per cent, led by India and Korea, driven by local entertainment and sports.”
Free to air content investment was up by six per cent in 2017. Scale and growth in free to air content investment are largely attributable to Korea, the Philippines, Thailand and Indonesia, driven by local entertainment.
Film production budgets in the surveyed markets were up 10 per cent, driven by Korea and India. Online video investment is growing rapidly from a low base, up almost 80 per cent during 2017.
Laslocky believes that rising competitive intensity is driving up online video content costs as rival platforms produce and acquire local series and movies, especially in India and Korea. “We expect online video content investment to also pick up in emerging markets across Southeast Asia, led by Indonesia and the Philippines,” he added.
Malaysian market witnessed a decline in video content investment in 2017 mainly due to Astro cutting spend on international pay channels. The outlook for Malaysia could improve as new government policies bolster economic growth, broadening consumer spend and ad dollars.
Growth in production spend across emerging Southeast Asia markets was generally satisfactory in 2017, according to the report.
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Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
