Launching an Encrypted Satellite Channel in India & Abroad

A Case Study of Bhojpuri Regional Language Channel (As a sample model) Bhojpuri Language is spoken by nearly 400 million peoples worldwide, 250 million peoples in India and rest 150 Million in rest of the World. Bhojpuri Entertainment Industry is now crossing Rs 1000 Crores annually and the market is expanding @ 20 % annually, nearly 200 Films in Bhojpuri are produced in a Year and more that 1000 Music albums are produced. Bhojpuri TV will be a Bhojpuri TV Channel with a Unique Programming lineup in the present market of Bhojpuri TV channels. We brand BHOJPURI TV as the India’s International Bhojpuri TV Channel, due to fact that no Bhojpuri TV Channel is present in any other country expect India and as said earlier nearly 150 Million Peoples spoke Bhojpuri in the countries other than India. The Main Countries which have a great liking of Bhojpuri Content are- UAE, Saudi Arabia, Oman, Kuwait, Bahrain, Qatar, Mauritius, Trinidad, Suriname, Netherlands, USA, South Africa and Fiji. In the current scenario Bhojpuri Language is termed as Official Regional Language in USA and the Official Language in Mauritius. So Bhojpuri TV will provide good entertainment to our International Audience. Keeping in view of the content cost and its return in our Broadcasting Industry, we planned the BHOJPURI TV will be a dedicated Channel which showcase the BHOJPURI MOVIES with blend of some current affairs news from India and around the world in its programming lineup. Current TV Channels in Bhojpuri are telecasting current affairs, movies, Soaps and music, but there is no dedicated Bhojpuri Movies TV Channel, we present our TV Channel BHOJPURI TV as the Movies Channel for Indian and International Viewers Bhojpuri Movies are the biggest source of Entertainment in Bhojpuri and there is great demand of the movies in the international market.

BHOJPURI TV Satellite TV Channel of BHOJPURI MOVIES in India & Overseas BHOJPURI TV – Film Production BHOJPURI TV – Film Distribution in India & Overseas

The Business of TV Channel – How we are planning our Business Model for BHOJPURI TV A successful business models for today’s TV channels rely on driving ‘traffic’ (or eyeballs) across multiple media and platforms. This ensures the maximum exposure of sponsors, products and brands to as diverse an audience as possible, and ideally culminates in viewer interaction which will directly or indirectly bring a financial benefit to our TV channel. Within each of the traditional business models of free-to-air (where the content is free to view); subscription and pay-per-view (by event rather than annual subscription), there are several revenue–generating activities which can be implemented across the board, on whichever platform(s) best suit our genre and our audience. It is likely that your channel will receive revenues from more than one of these activities.

A. Content & Programming 1. Content Strategy 2. How to Source Content 3. How Much Content is needed 4. Format – SD/ HD 5. Exploitation of Content Rights

B. Licensing & Regulatory Issues 1. Uplink & Downlink License 2. Regulations 3. Company Setup

C. TV Broadcasting Platform & Distribution 1. DTH 2. CABLE TV 3. IPTV 4. Mobile TV

D. The Market and our Target 1. The Market of Our Channel 2. Target Viewers E. Marketing & Promotion 1. Marketing Strategy 2. Branding 3. Promotional Strategy 4. Business Development 5. Vertical Markets F. Investments 1. Investment in Content

2. Investment in Vertical Market 3. Investment in Distribution 4. Investment in Global Distribution 5. Investment in Marketing & Promotion 6. Investments in Recurring Expenditure

G. Revenue Stream 1. Advertisement & Sponsorship 2. Subscription 3. Participation 4. Tele-Shopping 5. SMS & WEB 6. Business Development 7. Vertical Markets 8.

Content & Programming The Content of BHOJPURI TV is planned keeping in view today’s high cost of content production and its manpower requirement. BHOJPURI TV will showcase the following content

Content Brief: # Content Type Details 1 BHOJPURI FILMS 35 MM

Color 2-2.5 Hours New & Old Bhojpuri Original Movies

2 English Films Dubbed In Bhojpuri

English Films from Hollywood, Europe, Thailand etc dubbed in Bhojpuri Language – Action & Horror Movies

3 South Indian Films Dubbed in Bhojpuri

Devotional, Social & Action South Indian Blockbuster Movies Dubbed in Bhojpuri

4 Short Hindi/ Bhojpuri Tele /Video Films

Video / Tele Films of less than 2 hours duration as fillers for the channel

5 Bhojpuri Songs Extract from the library of our films, new releases as fillers

6 Interviews Interviews of Bhojpuri Stars, Directors and Producers, Barter system for the Publicity of New Films etc.

7 Box Office Reports Weekly Cinema performance report on the new releases Bhojpuri Films

8 Film Review Critics review and expert comments on New Releases Bhojpuri Films

9 Shooting Reports As Promotion of the films we will showcase the shoot report of the films in which our channel is involved

10 Events Live coverage of any film related event such as awards organized by our channel or any type of International event

11 News & Current affairs bulletin Bhojpuri News Bulletin from our Delhi News Unit 12 Overseas News from Mauritius,

Middle East Overseas news of Bhojpuri Peoples living in Middle east and other parts of the world

Notes:

Bhojpuri Films are the biggest source of entertainment in Bhojpuri Films have repeat Value Films are rich in content and making Rich in Viewership Other benefits such as exploitation of rights

Proposed Fixed Point Programming Time Duration Program 7:00 AM – 10:00 AM 3 hrs. F 1Devotional Feature Film Bhojpuri / South Indian

Dubbed 10:00 AM – 10:30 AM Tele Shopping Slot 10:30 AM – 10:45 AM NEWS Bulletin Bhojpuri 10:45 AM – 11:15 AM Promo/ Trailers 11:15 AM – 11:45 AM Tele Shopping Slot 11: 45 AM – 2:45 PM F 2Bhojpuri Feature Film Original Bhojpuri Feature

Film 2:45 PM – 3:00 PM NEWS Bulletin 4:00 PM -7:00 PM F 3 Bhojpuri Feature Film Original Bhojpuri/ Dubbed 7:00 PM – 7:30 PM NEWS Bulletin (Hind/ Bhojpuri) 8:30 PM -11:30 PM F 4 Bhojpuri Prime Feature Film Prime Original Bhojpuri

Film / Or English Latest Dubbed

12:30 AM – 2:00 AM F 5 Bhojpuri Film English Film Dubbed Important:

Daily Devotional Feature film in Morning Five Film per day Sunday Special for Kids: Cartoon Film Dubbed in Bhojpuri Friday Night Special TV Series “PACIFIC BLUES” Dubbed in Bhojpuri Saturday Evening Special for Kids: “ROBO COP” TV series Dubbed in Bhojpuri Daily 8:30 PM Slot for Bhojpuri Feature Film Daily Night Slot for English Movie dubbed in Bhojpuri Special Screening of Feature Film from Mauritius, Suriname & Fiji dubbed in Bhojpuri

Once in a month.

EXPLOITATION OF RIGHTS With Bhojpuri TV participation in the current film industry as UTV in Hindi Film Industry BHOJPURI TV will purchase Full Electronic Rights of the Bhojpuri Movies, the Electronic Rights includes

Satellite Rights (world) Audio Rights Video Rights IPTV Rights Storage Media Rights (Digital Disk) Home Video Rights Pay Per View Rights Video On Demand Rights

As our Business Strategy –

BHOJPURI TV will participate in the production of film and invest upto Rs 30,00,000 (Thirty Lacs) per film and get the above rights for perpetual period.

As per this activity BHOJPURI TV will get promotion as Presenter of the Bhojpuri Films and will

get direct promotion to the Bhojpuri Viewers through Theaters and its affiliated media promotion of the films

As per this strategy the branding of BHOJPURI TV will be very good in public and BHOJPURI

TV will exploit the Bhojpuri entertainment Industry.

Format of the Transmission will be MPEG 4 SD in India and MPEG 2 in Overseas DVB SD Telecast

Licensing & Regulatory Issues BHOJPURI TV is licensed from Government of India, Ministry of Information & Broadcasting as News & Current Affairs TV Channel The Owner Company of BHOJPURI TV is Information TV Pvt. Ltd. Lead by Shri. Kartik Sharma as CMD

TV Broadcasting Platform & Distribution Broadcast: Satellite – for C Band (Uplink from India) For Cable Operators & MSOs in India

Satellite Insat 4 A Orbital Location 83 Degree East Band C Transmission Encrypted DVB S Format MPEG 4

INSAT 4A Coverage Map C Band

A. DISTRIBUTION IN INDIA

Any TV channel is distributed as to reach the homes of viewers using the one or more than one method of distribution.

Methods of distribution are: Distribution on the Cable Network – using MSO/ LCO: In India we generally depend for distribution on the Multi System operator (MSO) and Local cable operators as the cable system in India is the most popular among the viewers, there are nearly 10000 cable operators in the country. Distribution via DTH Services: In India there are many DTH platforms, operating on Ku band of the satellites and these are upcoming medium of TV entertainment in India. Distribution Network

S. No State Number of cities

Approx Viewership

LCOs

1 UP 50 70,00,000 300 2 Bihar 30 50,00,000 200 3 Jharkhand 25 20,00,000 200 4 Chhattisgarh 10 5,00,000 100 5 Madhya Pradesh 10 3,00,000 100 6 Gujarat 5 5,00,000 50 7 Haryana+ Punjab+ Chandigarh 10 5,00,000 50 8 Mumbai+ Maharashtra 10 30,00,000 100 9 Rajasthan 5 1,00,000 50 10 West Bengal+ Assam+ Other NE States 10 5,00,000 150 11 Delhi + NCR 3 10,00,000 50 Total 1350

Indian Distribution: Key Points

The Channel will be encrypted as this is only dedicated movies channel in Bhojpuri

The Initial / Startup price per LCO is Rs 10,000 inclusive of STB & Card which is free for 180 days of viewing.

After 180 Days sector/ city wise the per month PAY TV Fee will be fixed

The BHOJPURI TV will be available on DTH Services also with six months free promotional offer DTH Services:

I. Reliance BIG TV II. Airtel Digital TV

III. Videocon D2H

B. Distribution in Overseas Overseas Distribution is planned on Ku Band on different Satellites covering our target countries Listed below Overseas Distribution Sectors

# Country Viewership 01 Bahrain 1,00,000 02 Oman 1,00,000 03 Qatar 1,00,000 04 UAE 10,00,000 05 Kuwait 2,00,000 06 Saudi Arabia 6,00,000 07 Mauritius 6,00,000 08 Thailand 2,00,000 09 Nepal 2,00,000 10 Bangladesh 2,00,000 11 United States 10,00,000 12 Europe 10,00,000 Total 53,00,000

C. Distribution in other platforms (IPTV& Mobile)

BHOJPURI TV will be available Free of Cost in IPTV services in India & on selected mobile operators

The Market and our Target

The Market for Standalone dedicated Bhojpuri Movies Channel is very good and developing to a greater extent. Facts:

There is only one TV Channel “MAHUAA TV” which is telecasting single movie per day in Bhojpuri

Occasionally “Star Gold”, “ZEE” and “SET MAX” telecasts Bhojpuri Movies Bhojpuri Movies are only available on VCD after being released in Theaters Many Bhojpuri Movies are not released in Theaters and released in VCDs

Biggest Source of Entertainment is Bhojpuri Movies but less screening on Satellite As we will be also involve in Production of Films and its distribution, so there is a great scope of

taking over the projects of the movies which are stopped due to some financial constraints. As the Bhojpuri Films are released in Theaters so the Female audience/ Viewers are not frequent

visitors to the cinema halls in UP & Bihar to watch Bhojpuri Movies, so there is a great opportunity that our channel will be watched by the female audience/ viewers more comfortable and they can also watch their favorite soaps on Hindi TV channels as there is clash between Mahuaa TV Soap timings with of the Hindi GEC Popular Show timings.

The Market Now: MAHUAA TV – General Entertainment TV Channel in Bhojpuri Contents: News, Movies, Soaps, Reality Shows etc. Sangeet Bhojpuri – Music Channel in Bhojpuri These two TV channels are watched and are popular in Bhojpuri Areas & there are two more TV channels but they are not so popular. Our Channel which is planned for Movies in Bhojpuri and NEWS will be welcomed with a good response as Other than Bhojpuri Movies, we will be telecasting English Movies dubbed in Bhojpuri (as Bindass Movies is very Popular among the Bhojpuri public) Branding of Our TV channel will be as “INDIA’s First International Bhojpuri Channel” this line will spell the following:

English/ International Language movies will be showcased in Bhojpuri (New Social Approach)

News Roundups & Coverage of Indians (PIOs) from Middle East and Mauritius who hails from UP & Bihar, will be good for the relatives of these people living in UP and Bihar

Planned Global Distribution will certainly add to our Brand value in India, as we will be only one to showcase the Bhojpuri Entertainment & News from local Bhojpuri region to the outer world.

In Global world there is no Bhojpuri TV channel, we will be the first one so we will get the good response and certainly get the good revenue as we will be PAY TV in overseas market and will also operates PAY PER VIEW Services of Bhojpuri Movies.

TARGET Areas in INDIA

S. No State Number of cities

Approx Viewership

Major City

1 UP 50 70,00,000 Lucknow, Noida, Gaziabad, Allahabad, Kanpur, Varanasi, Gorakhpur

2 Bihar 30 50,00,000 Patna, Muzaffarpur, Dharbhanga, Gaya

3 Jharkhand 25 20,00,000 Jamshedpur, Ranchi, Dhanbad, Bokaro

4 Chhattisgarh 10 5,00,000 Raipur & Ambikapur 5 Madhya Pradesh 10 3,00,000 Jabalpur, Satna, Bhopal 6 Gujarat 5 5,00,000 Surat, Baroda, Vapi, Valsad 7 Haryana+ Punjab+

Chandigarh 10 5,00,000 Sonipat, Ambala, Chandigarh,

Ludhiana, Jahalandhar, Amritsar 8 Mumbai+ Maharashtra 10 30,00,000 Mumbai, Nasik, Pune, Nagpur,

Thane 9 Rajasthan 5 1,00,000 Jaipur 10 West Bengal+ Assam+

Other NE States 10 5,00,000 Kolkatta, Guahati,

11 Delhi + NCR 3 10,00,000 Delhi Total

Target Segment is every age group Covering each genere for each target group Old- Devotional Movies Kids- Cartoon Movies Youth – English Movie & New Movie Women - Devotional & New Movies

Overseas PAY TV business Target Market / Regions - Middle East

# Country Major Camps Target Subscriber (Indian Pakistani and Nepali)

1 UAE Abu Dhabi, Sharjha, Dubai, Ras-Al- Khamiah, Fuzi-raha

300,000

2 Saudi Arabia Riyadh, Jeddah, Dam am 200,000 3 Kuwait Kuwait 30,000 4 Oman Muscat 50,000 5 Bahrain Bahrain 50,000 6 Qatar Doha 30,000

Total subscriber Base 660,000

Additional market Russia, United Kingdom, Netherlands and Germany USP:

1. No Bhojpuri TV Channel is present in this region 2. No Pay per view channel available in Europe and Middle east 3. Future Up gradation on PPV Channel, we will introduce movies in Tamil, telugu and Mallalyam . 4. A large population of South Indian live in the areas/ countries of middle East

Market Segment Our Market Segment is Indian residing in the Gulf Countries- Major Indian Pakistani and Nepali Camps are situated in Abu Dhabi, Sharjha, Dubai, Ras-Al- Khamiah, Muscat, Riyadh, Jeddah, Dam am, Doha, Bahrain and Kuwait. Approx Target Subscriber – 660,000

For South Africa & Mauritius – Distribution will be on Different Satellite and the Target Subscriber base is Approx 5,00,000 Marketing & Promotion

As the Marketing and Promotion of our Channel “BHOJPURI TV” is concerned as stated above we will brand our Channel as the Ambassador of Bhojpuri to the outer world Branding of Our TV channel will be as “INDIA’s First International Bhojpuri Channel” this line will spell the following:

English/ International Language movies will be showcased in Bhojpuri (New Social Approach)

News Roundups & Coverage of Indians (PIOs) from Middle East and Mauritius who hails from UP & Bihar, will be good for the relatives of these people living in UP and Bihar

Planned Global Distribution will certainly add to our Brand value in India, as we will be only one to showcase the Bhojpuri Entertainment & News from local Bhojpuri region to the outer world.

In Global world there is no Bhojpuri TV channel, we will be the first one so we will get the good response and certainly get the good revenue as we will be PAY TV in overseas market and will also operates PAY PER VIEW Services of Bhojpuri Movies. BHOJPURI TV will be promoted by the following means

Cross Channel Advertisements Print Media Publicity Outdoor Media Publicity

Other than these conventional means of promotion we will additionally do the following task for the promotions:

As BHOJPURI TV will be involve in the Production of NEW Films, so the Stars of the particular Films will promote the Channel in Public Gathering at the time of Shoot and at the time of Media Publicity.

BHOJPURI TV will be promoted through the Films which will be produced in association with the

channel through the means of Publicity of that Particular film such as Posters, Banners, theater Publicity, Premiers and Muhurats.

Roadshows of the Latest movie with stars

Publicity in Film Trade Magazines for Films FINANCIAL PART Investments Investment in a TV channel is the most important factor for the broadcasting business, Investment in right directions and in right heads will lead to achieve quicker breakeven. As matter of Fact there are huge investments is required in Content & Distribution of the channel, but BHOJPURI TV investments are planned in a systematic way so that there will be a good business preposition that must lead us for self sustain model in next three four years. Following are the Important Heads in which we require to invest

Investment in Content Content is the Soul of the Channel and investment in content should be so sharply balanced that cost of the content should be viable for the marketing & Sales team to get advt. revenue Investment in Content specially Films leads to get returns in good packets only if the proper branding and marketing is done

Brief of the Investment in Content

# Content Type Rights / Work Period No of Films

Cost Per Films

Total Cost / Investment

1 BHOJPURI FILMS 35 MM Color 2-2.5 Hours

Exclusive Satellite Rights (World)

7-10 Years

150 5.00 LACS

7.50 Cr.

Non Exclusive Satellite Rights (World)

1 year 250 1.00 LACS

2.50 Cr.

2 Self Produced Bhojpuri Films (Vertical Market)

Perpetual Satellite Rights

99 Years

10 / Year

30.00 LACS

3.00 Cr.

Other Electronic Rights 99 Years

3 English Films Dubbed In Bhojpuri

Exclusive Satellite Rights (World) Bhojpuri/ Arabic Language & All Electronic Rights

7-10 Years

100 1.00 LACS

1.00 Cr.

4 South Indian Films Dubbed in Bhojpuri

Exclusive Satellite Rights (World) Bhojpuri/ Arabic Language & All Electronic Rights

7-10 Years

100 2.00 LACS

2.00 Cr.

5 Short Hindi/ Bhojpuri Tele /Video Films

Perpetual Satellite Rights & Other Electronic Rights

99 50 1.00 LACS

0.50 Cr.

TOTAL INVESTMENT in First Year 15.50 Cr. 6 Bhojpuri Songs Managed from the Film Rights / Electronic Rights 7 Interviews 8 Box Office

Reports 9 Film Review 10 Shooting Reports 11 Events 12 News & Current

affairs bulletin 13 Overseas News

from Mauritius, Middle East

IN House Production To be Produced and Managed by India NEWS National Channel Mumbai News Channel etc. FEED and Content to be contributed from the National Team & Achieves For Overseas NEWS we will tie-up with the Local Broadcasters

Investment in Vertical Market These investments mean that to invest in the making of Bhojpuri Feature Films and to recover the investment from the exploitation of rights Rupees 3.00 Cr. per Year for Producing 10 Films Investment in Distribution

# Heads Cost 1 Encryption 10.00 LACS 2 STBs (1500 NOs) @ 3000 Per STB

including Card 45.00 LACS

3 Printed Materials and Gifts etc @ 500 Per BOX

7.5 LACS

4 Travel Transportation and Logistics 5.00 LACS TOTAL 67.5 LACS

Investment in Global Distribution

# Region Satellite Cost Per Year 1 Europe & Middle East Eurobird 9 A 1.2 Cr. 2 United States Galaxy 19 1.2 Cr. 3 South Africa &

Mauritius Eutelsat W3A 1.2 Cr.

Total Investment 3.6 Cr. Investment in Marketing & Promotion

Investments in the following will cost around Rs 3.00 Cr

o Cross Channel Advertisements o Print Media Publicity o Outdoor Media Publicity o As BHOJPURI TV will be involve in the Production of NEW Films, so the Stars of the

particular Films will promote the Channel in Public Gathering at the time of Shoot and at the time of Media Publicity.

o BHOJPURI TV will be promoted through the Films which will be produced in association with the channel through the means of Publicity of that Particular film such as Posters, Banners, theater Publicity, Premiers and Muhurats.

o Roadshows of the Latest movie with stars o Publicity in Film Trade Magazines for Films

Investments in Recurring Expenditure Monthly Cost- Recurring Expenditure

A B D E F # Heads Rate/Price/

Payments Nos/ qnt.

Total Amount in INR

Annual

01 Satellite fee, Playout & Uplink

6,50,000 6,50,000 78.00 LACS

02 Leased Line 1,00,000 1,00,000 12.00 LACS03 Executive Salaries 1,00,000 6 6,00,000 72.00 LACS04 Salary- Sr. Level 50,000 5 2,50,000 30.00 LACS05 Salary Med Level 25,000 10 2,50,000 30.00 LACS06 Salary Low Staff 10,000 10 1,00,000 12.00 LACS07 08 Wages ETC 50,000 6.00 LACS 09 Packaging

/Production Cost 2,00,000 24.00 LACS

10 Bills telephone 50,000 6.00 LACS 11 Bills Electricity 50,000 6.00 LACS12 Bills Travel 1,50,000 13 Bills- Fuel 50,000 6.00 LACS15 Bills Printing and

stationary 20,000 2.40 LACS

16 Bills –Misc and Logistics

20,000 2.40 LACS

17 Rents –etc 2,00,000 24.00 LACS 19 Misc 20,000 2.40 LACS20 Staff welfare 20,000 2.40 LACS TOTAL AMOUNT In INR 27.8LACS 315.6 LACS

3.1 Cr.

TOTAL INVESTMENTS in First YEAR

# Investment Head AMOUNT 1 Content including Vertical Market 15.50 Cr. 2 Distribution – India 0.67 Cr. 3 Distribution – Global 3.60 Cr. 4 Promotion & Publicity 3.00 Cr. 5 Recurring Expenses 3.10 Cr. Total Investment (1st Year) 25.87 Cr.

Investment in second year and third will remain approx same

REVENUE ANALYSIS

Revenue Stream Advertisement & Sponsorship Subscription Participation Business Development Vertical Markets

Revenue Generation Plan from Telecast Important Heads from which the Revenue will be generated

1. Sale of Free Commercial Time (FCT) The Free Commercial Time (FCT) is the time allowed between the programs of the channel for the purpose of telecast of commercial advertisement Every 30 Minutes program contains 6 Minutes of Free Commercial Time Total as 24 Minutes of Program plus 6 Minutes FCT Now the whole 24 Hours of Broadcast per day will be divided into two parts

a. Prime Time Telecast – Morning (6.00 AM to 8.00 AM) & Evening (7.00 PM to 11.00 PM) b. Non Prime Time Telecast – 8.00 AM to 7.00 PM & 11.00 PM to 6.00 AM

Now the Rates defined is rate in Rupees per 10 Seconds of FCT Prime Time Rate – Rs. 500 per 10 Seconds Non Prime Time Rate – Rs. 200 per 10 Seconds Total FCT Available

# Time Slot Total FCT / DAY Total FCT / Month

Expected Monthly Revenue in Rs.

1 Prime Time Telecast (PT) – Morning (6.00 AM to 8.00 AM) & Evening (7.00 PM to 11.00 PM)

Total 6 Hours of PT Broadcast will contain 6 X 12 Minutes of FCT = 72 Minutes of FCT No of slots (10 seconds Each) 72 X 6 = 432

432 Slots per Day X 30 Days = 12960 Slots per month

Rs. 500 X 12960 = Rs. 64,80,000

2 Non Prime Time Telecast (NPT)– 8.00 AM to 7.00 PM & 11.00 PM to 6.00 AM

Total 18 Hours of NPT Broadcast will contain 18 X 12 Minutes of FCT = 216 Minutes of FCT No of slots (10 seconds Each) 216 X 6 = 1296

1296 Slots per Day X 30 Days = 38880 Slots per month

RS200 X 38880 = Rs.77,76,000

TOTAL 1,42,56,000/-

2. Sale of Telecast Time

The Sale of Telecast time can be defined as the Sale of air time available for broadcasting The total AIR Time of Broadcasting can be defined as the time available for broadcasting / telecasting of content & programs

Commercial Airtime – 13 Minutes of telecast time will be sold to any commercial company/ organization for their advertisement content telecast Teleshopping Airtime – 13 Minutes of Telecast time will be sold to any teleshopping company for its online sale business

Rates Category Rate per Slot Expected Sale Total Revenue Commercial Airtime

Rate per slot of 13 Minutes Plus 1 repeat slot = Rs. 5000 All Slots will be NPT Slots

Total Sale = 10 Slots per day = 300 Slots per month Rs. 5000 X 300 = Rs. 15,00,000

Rs. 15,00,000

Teleshopping Airtime

Rs 75,000 per 13 Minutes Slot per day for 25 days

12 slots per month = Rs. 75000 X 12 = Rs 9,00,000

Rs. 9,00,000

TOTAL 24,00,000/-

3. Sale of Screen Space (on the Time

Sale of On Screen Space can be defined as the sale of Space for Static / Dynamic Display on the Screen of the TV channel (720 X 560 pixels) during the telecast

Time Piece – Sponsored display of time on screen with logo or still advt of Sponsor Weather Report – sponsored display of weather of the important cities with still logo of the sponsor Astrology – Graphical illustration of forecast of the day with logo of sponsor Breaking News – On screen display of breaking news with logo of sponsor Scroll Advertisement – on screen display of running text content from any person/ institution or company for display of any message/ advt. in form of TEXT

Rates Category Rate per Slot Expected Sale Total Revenue Time Piece Rs. 5,00,000 for display

of time piece 1 X Rs 5,00,000 Rs . 5,00,000

Weather Report Rs 2,00,000 for 1 Minutes Graphical representation and information on day’s weather 5 times during a day – for one month

1 X Rs 2,00,000 Rs. 2,00,000

Astrology Rs. 5,00,000 for 5 Minutes Graphical representation and information on day’s astrology report 5 times during a day – for one month

1 X Rs 5,00,000 Rs. 5,00,000

Breaking News Rs. 20,000 per Breaking news – continuous Scroll display with logo for 15 seconds repeated 20 times during one day – per day sponsor

30 Days X Rs. 20,000 = Rs. 6,00,000

Rs. 6,00,000

Scroll Advertisement

Rs. 500 for running text content upto 25 words run for 15 seconds 10 times during a single day

40 Scrolls per day = 30 Days X 40 = 1200 Rs. 500 X 1200 = Rs. 6,00,000

Rs. 6,00,000

TOTAL 24,00,000/-

4. Sponsorship for the Programs/ Movies

We will be taking sponsor for the Movies that will be telecasted on our TV channel these sponsor will be given benefits and mileage according to the price paid for sponsorship

Category

Prog. Type Mileage Free Commercial Time

Frequency Amount of Sponsorship

Amount of Sponsorship per Movie

Platinum Sponsor

Prime Time Movie SUNDAY EVENING MOVIE. SUNDAY NOON MOVIE

MOVIE will be on sponsors Name Promo of the Movie will contain the name of sponsor

10 Seconds slots for Advt. of sponsor Allotment of 3 Minutes (18 slots of 10 sec) Per Screening

4 Movies /month

Rs. 15,00,000 Rs 5,00,000

Diamond Sponsor

Prime Time MOVIE SATURDAY EVENING

MOVIE will be on sponsors Name Promo of the Movie will contain the name of sponsor

10 Seconds slots for Advt. of sponsor Allotment of 2 Minutes (12 slots of 10 sec Per Screening

4 Movies / Month

Rs. 10,00,000 Rs 3,00,000

Co- Sponsors

Prime Time

The Program Montage will display the co- sponsor name as “ This Program is co- sponsored by’ Promo of the episode will contain the name of co- sponsor

10 Seconds slots for Advt. of sponsor Allotment of 30 Sec (3 slots of 10 sec) Per Screening

4 Movies / Month

Rs. 4 ,00,000 Rs 1,25,000

Sponsor ENGLISH DUBBED CATEGORY

The Program Montage will display the sponsor name as “ This Program is sponsored by’ Promo of the episode will contain the name of sponsor

10 Seconds slots for Advt. of sponsor Allotment of 2 minutes (12 slots of 10 sec Per Screening

30 Movies Per Month

Rs. 30,00,000 Rs 1,25,00,000

Sponsor DEVOTIONAL CATEGORY

TITLE Of the program will be on sponsors Name Promo of the episode will contain the name of sponsor

10 Seconds slots for Advt. of sponsor Allotment of 2 minutes (12 slots of 10 sec) Per Screening

30 Movies Per Month

Rs. 30,00,000 Rs 1,25,00,000

Sponsor Kids Category TITLE Of the program will be on sponsors Name

10 Seconds slots for Advt. of sponsor

4 Moves/ Month

Rs. 10,00,000 Rs 3,00,000

Promo of the episode will contain the name of sponsor

Allotment of 2 minutes (12 slots of 10 sec) Per Screening

Sponsor Regular Movie NOON

TITLE Of the program will be on sponsors Name Promo of the episode will contain the name of sponsor

10 Seconds slots for Advt. of sponsor Allotment of 2 minutes (12 slots of 10 sec) Per Screening

60 Movies / Month

Rs 50,00,000 Rs 1,00,000

TOTAL

1,49,00,000/-

Total Revenue Generation per month S. No.

Heads Amount (estimated)

01 Sale of Free Commercial Time (FCT) 1,42,56,000/-

02 Sale of Telecast Time 24,00,000/- 03 Sale of Screen Space 24,00,000/- 04 Sponsorship for the programs 1,49,00,000/- TOTAL 3,39,56,000/- TOTAL Rs 3,39,56,000/- per month is revenue from the TELECAST – 100 % Output

Subscription Revenue

As BHOJPURI TV will be PAY TV in India & Overseas the main and fixed revenue will be from Subscription of BHOJPURI TV INDIA SUBSCRIPTION Payments (Per Month) from Sectors/ Regions (after 6 months from the day of Start)

S. No

State Number of cities

Approx Viewership

LCOs AMT. In LACS

1 UP 50 70,00,000 300 60.00 2 Bihar 30 50,00,000 200 40.00 3 Jharkhand 25 20,00,000 200 25.00 4 Chhattisgarh 10 5,00,000 100 15.00 5 Madhya Pradesh 10 3,00,000 100 10.00 6 Gujarat 5 5,00,000 50 15.00 7 Haryana+ Punjab+

Chandigarh 10 5,00,000 50 15.00

8 Mumbai+ Maharashtra

10 30,00,000 100 25.00

9 Rajasthan 5 1,00,000 50 5.00 10 West Bengal+

Assam+ Other NE States

10 5,00,000 150 15.00

11 Delhi + NCR 3 10,00,000 50 20.00 Total 1350 240.00 2.4 Cr. Per

Month

Calculations as Average Monthly PAY TV Subscription FEE per LCO

A LCO – A+ Category City 25,000 per Month B LCO - A Category City 20,000 Per Month C LCO – B Category City 10,000 Per Month D LCO – C Category City 5,000 per Month

Overseas

A Middle East 50.00LACS Per Month B Europe 30.00 LACS Per Month C South Africa & Mauritius 25.00 LACS Per Month D United States 25.00 LACS per Month E Other Countries – C Band

Coverage 10.00 LACS per Month

Total 1.40 Cr. Per month Rates

# Region Rate Target Subs A Middle East AED 10 Per Subs. 40,000 B Europe Euro 4 Per Subs 12,000 C South Africa & Mauritius USD 4 Per Subs 12,500 D United States USD 7 Per Subs 10,000 E Other Countries – C Band

Coverage USD 5 Per Subs 5,000

Other Countries of Indian Subcontinent

A Nepal 5.00 LACS per Month B Bangladesh 5.00 LACS Total 10.00 LACS

Total Subscription Revenue per Month – Rs 1.50 Cr Notes: Distribution in Countries specifies above will be done through local DTH Operators Our Channel will be available on the Ku Band Satellite in the regions

Participation Revenue The Revenue generated from Tele-calling and SMS is known as Participation Revenue We will introduce quiz & Questions in the middle of each movie and will give prizes to the viewers Tele-com & SMS Revenue per Month SMS – 2,00,000 Viewers – Approx 5.00 LACS per month TELE – 50,000 Viewers – Approx 2.5 LACS per month We will be Electronic rights holder of Bhojpuri Movies so we can generate the following revenue Ringtone Download – Rs 2.00 LACS per month Wallpapers others – Rs 2.00 LACS per month WEB DOWNLOAD – Songs VOD etc Total Revenue Rs 1,00,00 per month TOTAL Revenue

Heads Amt. SMS 5.00 LACS TELE-CON 2.5 LACS Ringtone D/L 2.00 LACS Wallpapers & Other 2.00 LACS WEB D/L 1.00 LACS TOTAL 12.5 LACS Per

Month

VERTICAL MARKET & BUSINESS DEVELOPMENT As BHOJPURI TV will be producing Bhojpuri Films, will have dubbing rights for English & South Indian Films, so there will be great and parallel revenue from the exploitation of rights of the contents we acquire and produce BHOJPURI FEATURE FILMS (Budget – approx 60-70 LACS) BHOJPURI TV Investment 30.00 LACS – We will get Electronic Rights (Perpetual & World Rights) including the following Satellite Rights Audio Rights Video Rights Home Video Rights IPTV Rights Video on Demand Rights Pay Per view Rights Dubbing Rights Approx Value in Current market for Average Bhojpuri Movie

# Rights Value Max (in LACS)

Value Min (in LACS)

1 Satellite Rights 10.00 5.00 2 Audio Rights 3 Video Rights 4 Home Video Rights

15.00 7.00

5 IPTV Rights 6 VOD Rights 7 PPV Rights 8 Dubbing Rights

Not Exploited So FAR

In Addition to this as BHOJPURI TV will be the Producer of the Films, and we can certainly insert a good IN – Film Advertisement in the Feature Films to give mileage to the Sponsor & Product and for extra mileage we can offer the advt. in our Channel also

Per Movie In Film Advt- Rs 15-10 LACS But as BHOJPURI TV will be available in Overseas also then we can exploit the Rights as the following

# Rights 1 Satellite Rights Non Exclusive Satellite Rights to

various TV channels 3-4 Channels

Rs 50,000 per movie per year Rs 2.00 LACS year

2 Audio Rights Sold to Audio Company for INDIA Overseas release SELF

3 Video Rights Sold to Audio Company for INDIA 4 Home Video

Rights Sold to Audio Company for INDIA

Audio Company 8-5 LACS

5 IPTV Rights Internet portals in overseas Movie Screenings

Rs 50,000 ($1000) for 3 Months per movie

6 VOD Rights Internet portals in overseas Cable Services in Overseas

Rs 2 LACS ( $ 4000) World rights per movie for 1 Year

7 PPV Rights In Overseas on different satellites with per movie TKT cost as $ 2 Will attract a number 1000 viewers per movie Approx Screening 15 Movies per month in one sector (EU+MEA/ USA/SA)

Revenue - $ 2000 per movie per month Rs 1.00 LAC per month per movie 15 X 3 Movies - $ 90,000 per month

8 Dubbing Rights Rs 1,00,000 per Language Bengali/ Urdu/ Arabic/ Afgani

Rs 4.00 LACS for 3 years

Vertical Revenue per Month Approx: Rs 25.00 LACS

TOTAL REVENUE PER YEAR

# HEADS Revenue in Rs (Cr.) Monthly

Revenue in Rs (Cr.) Annually

1 Revenue from Telecast 3.39 40.68 2 Subscription Revenue (India) 2.40 28.80 3 Subscription Revenue

(Overseas) 1.50 18.00

4 Participation Revenue 0.12 01.44 5 Vertical Market Revenue 0.25 03.00 TOTAL 91.92

Rs 91.92 Cr annually is the Revenue in 90 % Output of the Channel

# HEADS Revenue in Rs (Cr.) Annually 3rd Year

1 Revenue from Telecast 40.68 2 Subscription Revenue (India) 28.80 3 Subscription Revenue

(Overseas) 18.00

4 Participation Revenue 01.44 5 Vertical Market Revenue 03.00 TOTAL 91.92

1st Year : 25 % of 91.92 Cr. 2nd Year : 50% of 92.92 Cr. CASH FLOW A Year Investment (Rs.) Return (Rs.) Profit / Loss 1 2010 25.87 Cr. 22.98 Cr. (-)2.89 Cr. 2 2011 30.00 Cr. 45.96 Cr. 15.96 Cr. 3 2012 35.00 Cr. 91.92 Cr. 56.92 Cr.

Strategic Alliance for the Business Development Business Development in the following areas:

1. DOWNLINKING Services: Downlink licenses and distribution services for the foreign TV channels in India.

2. Global distribution of Indian/ south Asian TV channels in different platforms/ satellites with our tie-ups

A. DOWNLINKING Services:

Targeting/ sourcing a group of 10 Overseas TV Channels who are interested in distribution of their TV channel in India These Channels are available on the Satellites which have footprints over India; some channels will contribute their FEED through IP Commercial Proposal for Channels will be as follows:

a. DOWNLINKING Fee as applicable (MIB Govt. Fee) One Time b. One Time Setup Fee: Rs 5,00,000/- : for Govt/ Licensing Work c. Monthly Service Fee: Rs 6,00,000/- : for the services of Downlinking monitoring /

Distribution Services d. Additional Services Fee: Rs 4,00,000/- : for the services of Marketing and advt. Sales e. Minimum advance monthly deposit of three months f. Distribution of Channels on DTH Platform as per Carriage fee demand

Target: 10 TV channels to be downlinked, contract to be executed in 6 months

B. Global distribution of Indian/ south Asian TV channels

Introduction The scope for Media & Entertainment in India has increased manifold. With Industry status having been granted to both Television and Film platforms there is an added impetus being lent to these sectors and also to all its affiliated businesses. This paper proposes in the following few paragraphs to cover in brief the outline of this wide spectrum from one end to the other end of the value chain and show case how such a platform can be made into a very robust business entity.

AIM & OBJECTIVES OF THE BUSINESS MODEL of the Content Distribution To create and build a package/ bouquet of 20-25 TV channels for distribution and marketing on the different DTH platforms around the world DTH Platforms

1. United States 2. Canada 3. Middle East Asia 4. Europe including U.K. 5. North Africa and Middle Africa 6. South Africa including Mauritius 7. South East Asia 8. Australia and NZ 9. Japan

Our basic aim is to provide TV channels of different genre from India and Pakistan This Bouquet is meant for primarily Indians and Pakistani viewers living in different parts of the world, to provide them with a bouquet of TV channels from their own country in their own language # Region Countries Indian Population

@ Current Estimate 01 United States United States 6 M 02 Canada Canada 1 M 03 Middle East Asia UAE, Saudi Arabia, Oman, Qatar, Kuwait 1.4 M 04 Europe including U.K. East Europe, Russia, Netherlands 2.5 M 05 North Africa and Middle

Africa Kenya, Congo etc 1 M

06 South Africa including Mauritius

South Africa, Botswana, Mauritius 1 M

07 South East Asia Singapore, Thailand, Malaysia 1 M 08 Australia and NZ Australia and NZ 1 M 09 Japan Japan .5 M

Non-resident Indian and Person of Indian Origin

Total population @ 2000 Census

23 million

Regions with significant populations

Largest ethnic group

United Arab Emirates 1,400,000 Mauritius 855,000 Trinidad and Tobago 525,000 Guyana 327,000 Suriname 175,000

Major ethnic group

Nepal 4,000,000

Malaysia 2,100,000 Myanmar 2,000,000 Saudi Arabia 1,500,000 Kuwait 580,000[2] Singapore 400,000 Fiji 340,000

Minor ethnic group United States 3,000,000 United Kingdom 1,600,000 South Africa 1,160,000 Canada 962,665 Oman 450,000 France 330,000[3] Bahrain 310,000 Australia 235,000 Netherlands 217,000 New Zealand 105,000 Jamaica 90,000 Philippines 5,000 Indonesia 25,000

Hong Kong 40,000 Russia 16,000

Languages

Bhojpuri, Hindi, Urdu, Punjabi, Guajarati, Tamil, Telugu, Malayalam, Kannad, Sindi (Pakistani)

Religion

Hinduism, Islam, Sikhism, Christianity, Buddhism,Jainism, Zoroastrianism

The Bouquet will contain the following TV channels # Channel Description Language Target Group 01 Hindi General Entertainment Entertainment TV channel in

Hindi Language showcasing daily soaps ,T V series, comedy

Hindi North Indians, including Punjabi and Guajarati

02 Hindi News Round the clock news channel in Hindi focusing news and events from India and Asia

Hindi North Indians, including Punjabi and Guajarati

03 Hindi Movies 24 hours movies channel showcasing best of Bollywood movies

Hindi North Indians, including Punjabi and Guajarati

04 Hindi Music 24 hours nonstop music channel showcasing songs and promos of Hindi movies and new releases

Hindi North Indians, including Punjabi and Guajarati

05 Bhojpuri General entertainment

Entertainment & News TV channels focusing best of Fiction and non fiction programs, songs films etc with content of current affairs and news in Bhojpuri Language

Bhojpuri North Indians

06 Tamil General entertainment Tamil Language channel focusing news and entertainment

Tamil South Indians and Srilankan

07 Telugu-Kannad General entertainment

Telugu Language channel focusing news and entertainment

Telugu-kannda

South Indian – Hyderabad – Bangalore

08 Malayalam General entertainment

Malayalam Language channel focusing news and entertainment

Malayalam South Indian- Kerala

09 South Indian Movies 24 hours movies channel showcasing best of Bollywood movies

Tamil, Telugu-kannda, Malayalam

South Indian

10 Punjabi General entertainment

Channel focusing soaps, Tv series, songs and news in Punjabi language

Punjabi Punjabi Indian and Pakistani

11 Guajarati General entertainment

Channel focusing soaps, Tv series, songs and news in Guajarati language

Guajarati Guajarati Indian

12 Urdu Channel Channel focusing daily soaps, tv series and news in Urdu language

Urdu Islamic community from South Asia

13 Arabic General entertainment

News and entertainment channel covering programs in Arabic language

Arabic Islamic community from middle east

14 Devotional Channel – Indian Focusing Indian devotional programs

Hindi-English

Indians

15 Health Care Channel Focusing best of Yoga, Ayuruveda, therapies and health shows from India

Hindi – English

Indians and Asians

@ Indian Shopping Channel # Packed with PPV 1/2/3

Focusing Products from India, Handicrafts and Tourism products

Hindi- English

Indian, Americans and Asians

16 Devotional Channel- Buddhist

Focusing devotional programs and speeches from Buddhism in English, Chinese and Thai Languages

English, Chinese and Thai

Asians

17 Punjabi Music Channel 24 hours Punjabi Music Channel Non Stop traditional, hip hop and modern songs

Punjabi Indians – Punjabi and Pakistani

18 Pay Per View Channel 1 TV Series, Pakistani Comedy Plays, Dance Series, Concerts etc

Multi ALL

19 Pay per View Channel 2 Hindi & Bhojpuri Movies Hindi Bhojpuri

All

20 Pay Per view Channel 3 South Indian Movies South Indian

South Indian

Heads and Responsibilities # Heads Cost DTH Operator Our Company ROLE ROLE 1 Transmission Services Space Segment Teleport Services 100% Contribution Feed 100% 2 Value Added Services Customer Care 100% Encryption & CAS 100% Hardware Installation and

Warehousing 100%

Billing & Support 100% 3 Marketing Outbound Calls / Sales Promotions 4 Content & Package TV Channels 100% Other Content 100%

In Addition to this we can do the following business with the teleports in other countries

1. Bandwidth Business in C & Ku Band

2. Solution to any channel from any country for Global Distribution

3. Feed From India to any part of the world

4. Feed from any part of the world to India

5. Occasional use Satellite Turnkey solution for coverage of events such as Political, sports and other

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