Understanding Customer & Value Creation

Assignment 2 on

Siddharth Setia 2 SAP No: 80303120044

Overview
The Network18 Group is a media and entertainment company with interests in television, internet, films, e-commerce, magazines, mobile content and allied businesses. Through its subsidiary TV18 Broadcast Ltd., the group operates news channels - CNBC-TV18, CNBC Awaaz, CNBC-TV18 Prime HD, CNN-IBN, IBN7 and IBN-Lokmat (a Marathi regional news channel in partnership with the Lokmat group). TV18 also operates a joint venture with Viacom, called Viacom18, which houses a portfolio of popular entertainment channels Colors, Colors HD, MTV, SONIC, Comedy Central, VH1 and Nick - and Viacom18 Motion Pictures, the groups filmed entertainment business. TV18 and Viacom18 have also recently announced a strategic joint venture called IndiaCast, a multi-platform content asset monetization entity mandated to drive domestic and international channel distribution, placement services and content syndication for the bouquet of channels from TV18,Viacom18 and other broadcasters. TV18 has also forayed into the Indian factual entertainment space through A+E Networks | TV18 (Joint venture between A+E Networks and TV18 Broadcast), which has recently launched a new channel HistoryTV18. Through Network18 Media & Investments Ltd., the group operates its digital, publishing and e-commerce assets including moneycontrol.com, ibnlive.com, in.com and firstpost.com. Network18 also operates e-commerce properties like HomeShop18 and bookmyshow.com and publishes Forbes India, the nation's first local edition of a foreign news magazine title and one of the worlds most influential business brands, in collaboration with Forbes Media. In addition, through Network18, the group operates Newswire18, providing real time financial information and news terminal services, and Network18 Publishing, a player in the special interest publishing space as well as E18, the groups event management venture and Sport18, its sports management and marketing venture. Network18 has investments in Yatra, DEN Networks and other Capital18 portfolio companies.

History
1993 - The Company was incorporated under the companies Act, 1956 on September 24th, as a private limited company viz. Television Eighteen India Private Limited. The Company was promoted by Mr. Raghav Bahl and Mr. Sanjay Ray Choudhuri. 1994 - The Company was converted into a public limited company u/s 44 of the Companies Act and a fresh Certificate of Incorporation was received on January 2, 1995. 1995 - The Company entered into a programme production agreement with NBC Asia, a division of NBC, one of the world's leading broadcasters. 1996 - The Company set up a wholly owned subsidiary in Mauritius viz. Television Eighteen Mauritius Limited after receiving requisite consent from the Department of Companies Affairs and the Reserve Bank of India.

Siddharth Setia 3 SAP No: 80303120044 1997 - The Joint Venture to launch Asia Business News India suffered a major setback as ABNi closed down following the worldwide merger of ABN with CNBC. 1998 - A separate 51:49 joint venture has been entered into with TV18 to form CNBC India. This makes TV18 the only Indian production company to have a substantial stake in the Indian venture of a global broadcaster. 1999 - The company is slated to enter the primary capital market with its initial public offer of 29.36 lakh shares at Rs. 180 per share on December 16. 2000 - Television Eighteen had offered 27.36 lakh shares at a price of Rs 180 to the public and had reserved 2 lakh shares at Rs 180 on a firm allotment basis to Alliance Capital Tax Relief Fund 96, Alliance Equity Fund, Alliance Monthly Income and the Alliance 95 Fund. - The Company's Internet-focused subsidiary e-Eighteen Dot Com Pvt. Ltd., has acquired Money Control Dot Com Ltd., which owns the personal finance portal www.moneycontrol.com. 2001 -Joint venture between Television Eighteen (TV-18) and CNBC Asia, has announced India's first awards for excellence in fund management called CNBC India-BNP Paribas Mutual Fund of the Year. 2002 -Octopusvc Ltd has proposed to acquire 7,00,000 equity shares of the company representing 6.01% of the voting rights by way of preferential allotment at a price of Rs 88 per share 2003 -Increases stake in CNBC-TV18 channel from 49% to 90% 2005 -Television Eighteen India launches Fixed Deposit Scheme 2006 -TV18 appointed Mr. Sundeep Malhotra as new CEO for Home Shopping Network. 2007 -The Company has issued Bonus Shares in the Ratio of 1:1.

Siddharth Setia 4 SAP No: 80303120044

Financial Highlights

2011 Net Profit -69.80

2010 -45.41

2009 -18.20

2008 44.27

Total Income

65.59

55.73

94.47

143.41

Net Current Assets

241.31

495.91

154.89

185.61

Total Assets

1537.40

1596.23

862.11

795.50

Total Liabilities

1537.39

1596.23

862.11

795.50

Total Share Capital

213.71

211.44

190.29

25.74

Profit Before Tax

-72.25

-45.85

-19.32

44.42

Shares in Issue (lakhs)

1188.96

1143.41

719.36

514.82

* Currency in INR * In Rs. Cr

Siddharth Setia 5 SAP No: 80303120044

Product Mix

Companies under Network-18 TV18 Infomedia 18 IBN 18 Broadcast Ltd. Viacom 18 Web18 E18

Network TV Channels CNN-IBN IBN-7 CNBC Awaaz CNBC-TV18 IBN-Lokmat MTV India Nick India VH1 India Colors HomeShop18 Topper History TV18 ETV Network

Internet Offerings in.com moneycontrol.com firstpost.com poweryourtrade.com commoditiescontrol.com cricketnext.com compareindia.com tech2.in.com homeshop.com

Siddharth Setia 6 SAP No: 80303120044

Strategies (Porters Generic Strategies)

Network 18 comes under the category of Differentiation strategy. Instead of just being different or being ahead in the cost advantage race, it tries to be different in the consumer that it is targeting. MTV India It is centered around interest and passions of 15-34 year olds, offering them a compelling mix of music and non-music programming. Diffentiation strategy is used. CNBC TV18 Undisputed leader for news in business information in India. Audience is highly diversified, comprising of key groups such as business leaders, professionals, brokers, students, etc. CNBC Awaaz Business news channel targeting the Hindi speaking consumers. VH1 - Vh1 is Indias only 24-hour international music and lifestyle channel, providing music buffs with their daily dose of international music, pop culture, reality TV and celebrity lifestyle. Vh1 uses Differentiation Focused strategy as it targets a very specific audience. In.com Focuses on delivering cross format shows, music and creating special interest communities targeted specially at the youth. Bookmyshow.com It continues to strengthen its position as Indias premier ticketing solutions brand, available across platforms including the web, IVRS and mobile. HomeShop18 A virtual retail service that will enable the consumer to take well informed purchase decisions through specially developed infotainment led TV content.

Siddharth Setia 7 SAP No: 80303120044

Recent Development
The Network 18 Group announced a restructuring plan to create a simplified two listed entity structure for the group in July 2010. The restructuring became effective on June 10 2011 with the approval of the Delhi High Court and the group successfully completed the re-alignment of its business operation into 2 sections - Network 18 and TV18. While Network18 will take care of the digital and publishing side of the business, TV18 will look after the television assets of the group.

Launched in the competitive South markets in April 2010 with Tamil and Telugu feeds and grabbed 12% market share.

In recent time, mobile applications for Android, iOS, Windows, etc have been developed to facilitate information on a go to basis.