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Analysis of the Media Industry in India
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Publishers Media industry in India is among the fastest growing industries of the present Indian
economy.
Introduction
This report will analyze internal and external environment of the Media Industry in India through applying
the SWOT analysis, PEST analysis and the Porter's Five Forces Analysis. In addition the paper will also
focus on Future of the Media Industry in India, it will highlight the Different types Of Media in India which
includes the Print media, radio, electronic, outdoor and Television. India’s foreign direct investment will
also be assessed and finally a conclusion will be given inline with the findings.
Strength
Investment The media industry is a strong and well developed industry which is currently growing at high rate; this
in Croatia aspect gives the industry a lot of strength. With the increase in the level of education and media industry
has a well educated and skilled workforce with innovative ideas and technology which is an added positive
boost.hr aspect of the industry. The competitiveness of the media industry has enabled the industry to grow
Use help while technically both vertically and horizontally, which is another positive aspect in the industry. India also
offers strategic location and market in terms of its high population which is a boost to the industry. (Bird,
investing in Croatia
2003)
Local experts
secure investment
Weakness
Among the weakness in the industry, a current weakness may be inability to adhere to ethical standards in
the industry which has lead to lawsuits filled against some media industries. The industry also has been
slow in its growth only picking up in the recent past, thus its innovation and marketing strategies may be
not competitive on the global arena. (Bird, 2003)
According to the industry experts the industry still has room to expand within India as the market is wide.
Media services are being sought with many organizations and thus this offers the industry to increase its
Unlimited market share. The high technological innovation which is happening everyday also presents a good
opportunity for the media industry to utilize the latest technology in expanding its product mix or improving
Trading Offer existing ones hence reaching or increasing its market. There is exists new business in the global market
for the industry. (Bird, 2003)
Though India can be said to be stable political, the country his known for frequent changes in government
administration and instability in some regions or states, this issue negatively affects the media and it is
threat to the media. Also government legislations in India are known to some extend as hindering the
growth of industry especially for foreign companies. Also, the current threat poised by piracy, which
persists to deter investments in all media sectors has continued to threaten the industry growth. (Bird,
2003)
PESTLE stands for: political, economic, social/cultural, technological, legal, environmental. A description of
developments (known) and rising issues (unknown) which may impact on an industry/sector,
Political
Over the past year the media industry has continued to witness increased political interest increase
because of the recognition of the media industry economic importance to the overall economic growth f
the country. Policy stage Changes of administration or political principles have changed along the media
industry making it to be freer than before. (Johnson, 2001)
Economic
In the past few years the media industry has witnessed an improved growth in the industry, this is
attributed to India positive economic growth in recent years. The growth of the industry is expected to
grow by 16% in the current year. Improved competition in other sectors also boots the media industry as
these sectors services of the media industry such as promotion. (Johnson, 2001)
Social aspect
Media plays a big role in form information dissemination to the people of India, which of late due to
globalization have developed a high infinite for information. The impact of intense media attention has
brought about a more revolution in the social aspect and created a society which is more enlightened and
which appreciates the industry. Even though the Indians are known to be conservative and traditional they
attitudes towards the media industry are very positive. (Johnson, 2001)
Technological advances
Modern information technological advancement in media is making the industry players adapt faster to the
new environments they are participating. The technological advancement taking place in industry is high
and this calls for increased spending and research so as to be innovative in the industry.
Legal environment
The media industry in India is hot highly regulated as such, but there are laws and regulations which are
enforced for the industry to comply. However, in the recent past the government has become to lessen to
laws so as not to hinder competition in the face of increasing global challenges from the external markets.
Legislations such as anti-piracy laws have been enacted and the government tries to enforce the fully even
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Legislations such as anti-piracy laws have been enacted and the government tries to enforce the fully even
though it is difficult
This part is an outline of positional assessment of the media industry using porter’s five forces model
According to a report done by PricewaterhouseCoopers, and carried in the New Delhi, March 11, 2006,
The Indian Media industry is positioned to grow up at 19% compound yearly growth rate. This rate is
expected to go on until 2010. (PWC, 2007) Unravelled potential, good Economic growth, increasing
earnings levels, consumerism, and technological innovations and policy plans undertaken by the Indian
administration which are currently encouraging inflow of investments in the country, will attest to be
significant drivers for the media industry in India. The media industry has been predicted to surpass the
overall economic growth in every year, till the year 2010. (PWC, 2007)
Two main factors which will contribute to the industry growth are, low media access or penetration in
lesser socio-economic groups and low advert expends; At present media penetration is slow in lower
socio-economic groups, however efforts to raise it even just slightly are possible to bring much high
results, merely owing to the total numbers being great. India bully economic growth, increasing consumer
spending couple with regulatory rectifications are pulling foreign investment in many sectors of the media
industry, particularly the print segment. “The sector needs a consistent and uniform media policy for
increase in investments” (PWC, 2007).
Different types of Media-Print media, radio, electronic, outdoor, Television all in India
Media in India aims at reaching an extensive audience. Apart form the news media segment, which
include radio, print and television, the internet also plays an increasing function, alongside with the
increasing o Indian ‘blogging’ community.
Television
Television presently is the key driving strength of media industry in India. Television is predicted to be a
main source to India’s GDP in the recent future. As at present, television is accessible by roughly hundred
million households in India. Out of these, roughly half are satellite and cable. India is the third biggest
television market, in the whole world coming after china and USA. India also is amongst the cheapest
subscription of cable market, where in numerous places a monthly cable cost is merely averagely US $ 4
and hardly ever surpasses US $ 10.
Print media:
A roaring Indian economy leading to increasing necessitates for contents and regime initiatives which have
opened up the segment to foreign investments are pushing growth in print media. Also, with increasing
literate population, more folks in rural and urban regions are reading the newspapers and the magazines
nowadays. The internet at present offers a fresh avenue to create more advertising income. (PWC, 2007)
Radio:
The most cheap and oldest model of media in the India that is dominated by AIR, the sector is witnessing
a myriad-change very. In 2005, the India announced three main policy proposals which have driven
growth in the sector. These policies were migrating to a returns share administration, permitting foreign
investments into the sector and opening up licenses to the private players of the sector. This surge of
radio stations have resulted in increasing requirement for content and experts. Latest concepts such as
satellite, community radio and internet have also started to punch the market more and more, and radio is
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satellite, community radio and internet have also started to punch the market more and more, and radio is
gradually making a return in the lifestyles of the people. (PWC, 2007)
Out-of-home advertising:
Outdoor media locations in India are mainly owned or run by small, local players and are usually, who
directly markets them to the advertisers and also advertising agencies. Nonetheless, this sector also is
witnessing a myriad-change through technological innovations. (PWC, 2007)
Internet advertising:
Roughly 28 million Indians are presently connected on the internet. And this increasing number is resulting
to the increase of internet advertisement, which at present stands at around Rs 100 crore. Internet is
used for a various reasons, in addition to work, for instance chatting, doing transactions, leisure and
writing blogs. Internet provides a vast opportunity to marketers selling their products. With broadband
increasingly becoming popular, this sector is projected to grow by leaps and jumps. (PWC, 2007)
The liberalized investment administration, rapidly growing economy, good and strong macro economic
policies, continuous de-licensing of industry sectors and the easing in business transactions has attracted
multinational corporations to put investment in India.
And subsequent to policy amendments and bureaucratic simplifications, the FDI capital inflows have
witnessed an exceptional upswing. The FDI inflows in India have recorded more than five-fold increment
in the previous three years, rising from US$ 2.2 billion in 2003-04 financial years, to US$ 15.7 billion in
2006-07. Concurrently, FDI amount in GDP of India has gone up from 0.77%to 2.31% (in that period).
Considerably, FDI currently plays an increasing position in India’s economic growth of The FDI share in
overall investments is more than twofold from 2.55 % in 2003-04 to 6.42 % in 2006-07. Evidently, India is
presently doing well, and the figures seem to be getting better each day. (IBEF, 2008):
Conclusion
Media industry in India remains among the fastest growing industries of the present Indian economy,
industry has benefited a lot from the Indian rapid economic growth coupled by the rising earnings levels in
India. Good laws and liberations of the market are other factors which have enhanced the media industry,
though there is high competition in the industry there is room for new players and expansion of the
current players. The television and the print media are the biggest segments of the industry. Of late FDI in
India is a rise and the country is positioned has a major market global for the media industry.
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Reference:
Bird, S. E. (2003): The audience in everyday life: Living in a media world. New York: Routledge.
Jeffery, R. (2000): India's Newspaper Revolution: Capitalism, Politics and the Indian-Language Press 1977-
99. New Delhi: Oxford University Press.
Johnson, K. (2001): Television and the Social Change in Rural India. New Delhi: Sage Publication.
IBEF (2008): Indian Economy Overview; Foreign Direct Investment, available online on;
www.ibef.org/economy/fdi.aspx ; accessed on 3/3/0
PWC (2007): FICCI – PricewaterhouseCoopers forecast Indian Entertainment and Media industry to grow
19% CAGR through 2010. Available online on; www.pwc.com/extweb/home.nsf ; accessed on 3/3/08
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