Media & Print Consumption Trends 2005 2008 Through the IRS Window

4 Nov, 2008

Contents

Media Reach Quality of Media Consumption Readership in Depth A Few Key Results

Media Reach

Population and Literacy

TG : All India (U+R) Figures in Lakhs

2005 12+ Population Literates 77,80 50,87

2006 80,04 52,35

2007 82,43 55,13

2008 84,29 57,23

% Change (2005-08) 8.3 12.5

The All India population has increased by 8.3% over the past three years The increase in the number of literates over the same period is 12.5% - higher than the population growth.

Growth in Media Reach

TG : All India (U+R) Figures in Lakhs

2005 12+ Population Literates Any Media Any Publication 77,80 50,87 52,57 29,13

2006 80,04 52,35 54,41 31,02

2007 82,43 55,13 56,14 31,55

2008 84,29 57,23 57,45 32,34

% Change (2005-08) 8.3 12.5 9.3 11.1

Print reach shows a higher growth compared to population as well as Any Media.

Growth in Print Reach

TG : All India (U+R) Figures in Lakhs

2005 12+ Population Literates Any Media Any Publication Any Daily Any Magazine 77,80 50,87 52,57 29,13 27,79 11,47

2006 80,04 52,35 54,41 31,02 29,90 10,91

2007 82,43 55,13 56,14 31,55 30,54 9,73

2008 84,29 57,23 57,45 32,34 31,34 9,07

% Change (2005-08) 8.3 12.5 9.3 11.1 12.8 -20.9

Within print, dailies are driving reach growth. Growth of reach of dailies in line with the increase in number of literates. Magazines show a negative growth.

Growth in Print
TG : All India (U+R) Figures in Lakhs

2005 12+ Population Literates Any Media Any Publication Any Daily Any Magazine Any Pub (AIR) Any Daily (AIR) Any Mag(AIR)

2006 80,04 52,35 54,41 31,02 29,90 10,91 18,18 16,83 5,16

2007 82,43 55,13 56,14 31,55 30,54 9,73 17,11 15,80 4,23

2008 84,29 57,23 57,45 32,34 31,34 9,07 16,93 15,68 3,85

% Change (2005-08) 8.3 12.5 9.3 11.1 12.8 -20.9 -8.4 -7.4 -37.6

77,80 50,87 52,57 29,13 27,79 11,47 18,48 16,94 6,17

However, regularity of reading, as seen by the AIR measure is coming down both dailies and magazines show this trend.

Growth in Media
TG : All India (U+R) Figures in Lakhs

2005 12+ Population Literates Any Media Any Publication TV (Any TV) TV (C&S) Any Radio FM Radio Cinema Internet (L1M)

2006 80,04 52,35 54,41 31,02 43,78 23,08 16,99 8,52 8,68 1,22

2007 82,43 55,13 56,14 31,55 45,38 25,53 17,88 9,69 8,37 1,43

2008 84,29 57,23 57,45 32,34 46,74 28,73 18,04 11,20 8,33 1,73

% Change (2005-08) 8.3 12.5 9.3 11.1 9.3 36.7 12.1 56.3 -6.2 55.9

77,80 50,87 52,57 29,13 42,77 21,02 16,09 7,16 8,89 1,11

Except for Cinema, all other media show an increased reach. FM radio, Internet and C&S continue to show the highest growth

Quality of Media Consumption

Regularity Fragmentation Time Spent Primary vs. Secondary Content Other Avenues

Regularity
TG : All India (U+R) Ratio

MEDIA Any Publication Any Daily Any Magazine Any TV Channel Any Radio Channel

2005 0.63 0.61 0.54 0.72 0.87

2006 0.59 0.56 0.47 0.67 0.88

2007 0.54 0.52 0.43 0.83

2008 0.52 0.50 0.42 0.70 0.74

% Change (2005-08) -17.5 -17.9 -21.2 -2.8 -14.9

All media show a decreasing level of regularity Increased fragmentation and availability of same content across media may well be the reasons

Average Frequency of Consumption

TG : All India (U+R) Average Frequency of Reading

MEDIA Any Daily (in a week) Any Weekly (in 4 weeks) Any Monthly (in 6 months) Any TV (in a week) Any C&S (in a week) Any Radio (in a week) Internet (in a week)

2005 4.0 2.2 2.7

2006 4.0 2.1 2.7

2007 3.9 2.1 2.7

2008 3.9 2.0 2.7

% Change (2005-08) -2.5 -9.1 0

5.7 6.4 5.4 2.7

5.8 6.3 5.4 3.1

5.8 6.4 5.5 3.4

6.0 6.5 5.7 3.6

5.3 1.6 5.6 33.3

The Average Frequency of Reading is coming down for all print periodicities. The Average Frequency of Viewing/ Listening is increasing for TV, radio and internet.

No. of Titles/Channels
TG : All India (U+R) Average # Titles Consumed

MEDIA Avg No. of Publications (TR) Avg No. of Dailies (TR) Avg No. Magazines (TR) Avg No. TV Channels (L1W) Avg No. Radio Channels (L1W) Avg No. FM Channels (L1W)

2005 3.2 2.0 3.1 2.9 1.5 1.3

2006 2.9 2.0 2.9 3.0 1.6 1.4

2007 2.7 1.9 2.6

2008 2.5 1.9 2.5 3.7

% Change (2005-08) -21.9 -5.0 -19.4 27.6 26.7 30.8

1.8 1.6

1.9 1.7

While no. of titles read is declining, the number of channels consumed in TV and radio show an increasing trend

Average No. of Titles Consumed

TG : All India (U+R) Average No. Titles Consumed

MEDIA.0 Avg No. Publications (AIR) Avg No. Dailies (AIR) Avg No. Magazines (AIR) Avg No. TV Channels (Y) Avg No. Radio Channels (Y) Avg No. FM Channels (Y)

2005 2.1 1.5 2.2 2.1 1.3 1.2

2006 1.9 1.4 2.0 2.0 1.4 1.2

2007 1.7 1.3 1.9 1.5 1.4

2008 1.6 1.3 1.7 2.6 1.4 1.4

% Change (2005-08) -23.8 -13.3 -22.7 23.8 7.7 16.7

The same trend is noticed when seen at the more stringent AIR or equivalent level

Average Time Spent on Media

TG : All India (U+R) Average Time Spent - Minutes

MEDIA Press TV Radio Internet Total Time Spent

2006 27.8 93.8 69.7 61.5 113.0

2007 27.4 96.4 70.4 62.3 115.8

2008 26.5 99.4 81.1 60.1 121.1

Involvement with media as measured by time spent on media shows an increasing trend. This increase is mainly due to TV and Radio. Press shows a slight decline in terms of time spent

Time Spent Per Title

TG : All India (U+R) Time Spent in Minutes

2006 Any Publication Any TV Any Radio 9.6 31.3 43.6

2008 10.6 26.9 42.7

% Change 10.6 -14.1 -2.0

However, given the higher fragmentation of TV and radio, the time spent per channel is now declining In print the Time Spent Per Title has gone up possibly signifying an important opportunity for the press community.

Primary Readers
TG : All India (U+R) Percentage of Primary Readers

2007 Dailies Urban Urban Rural Rural English Vernacular English Vernacular 72 59 44 37 Magazines 47 54 35 43 Dailies 76 61 49 37

2008 Magazines 54 57 38 46

In general proportion of readers reading their own copy is on the rise This trend of increasing primary readership is seen for all segments

Sections Read
TG : All India (U+R) % of Daily Readers

Section Read Front Page City News National News Sports Entertainment Life Style Education Business Editorial

2007 85 80 70 55 34 31 29 23 22

2008 87 83 73 53 50 39 35 34 25 22

International News 50

Other Avenues
TG : All Internet Users (U+R) % Internet Users Using it for News

2005 Read News on the Net 13.7

2006 14.7

2007 24.1

2008 25.9

A large proportion of Internet user access news on the Net. However, given the small base, this is still small in terms of total numbers, but shows a fast increasing trend IRS covers 400 publications. A number of titles, specially niche titles remain uncovered. The increase in press reach due to publications not covered by IRS is 4%

Time of Media Consumption

TG : All India (U+R) % Media Consumers

TV Early morning to breakfast Breakfast to lunch After lunch Evening until dinner After dinner 5 6 21 37 32

Newspaper 33 38 23 6 1

Magazine 7 21 44 21 7

Radio 18 18 21 31 12

Internet 2 21 51 24 3

Each media has a clear pattern of consumption, with only a little overlap between press and TV

Quality of Media Consumption - Summary

All media show a declining regularity of consumption in terms of daily consumption over weekly reach. On frequency of consumption, the other measure of regularity, press shows the same trend. Radio and TV, however, show improvements No. of titles and time spent show increases for TV and Radio and minor declines for Press. This suggests further fragmentation of TV/radio but a consolidation in Print. This leads to the fact that at a title level Print gets more intensively consumed Primary reading clearly going up The net is possibly an opportunity area for premium dailies Magazines as a media need increased coverage. New and niche titles need measurement

Understanding Readership In Depth

Understanding RPC A Segmented View International Comparison

Understanding RPC Effect of Household Size

TG : All India (U+R) Average Household Size

2005 All HH All Urban HH All Rural HH All Publication HH All Publication HH (Urban) All Publication HH (Rural) 5.3 5 5.4 5.3 5 5.6

2006 5.2 4.9 5.3 5.2 4.9 5.5

2007 5.2 4.9 5.3 5.2 4.9 5.5

2008 5 4.8 5.1 5.1 4.8 5.3

Nationally, the average household size is steadily decreasing nuclearization. This increases circulation but may not have the same effect on readership

Understanding RPC - Urbanization

TG : All India (U+R) Population: Lakhs

2005 U+R Urban Rural 77,80 23,67 54,13

2006 80,04 24,63 55,41

2007 82,43 25,66 56,77

2008 84,29 26,42 57,87

% Change 2.71 3.73 2.26

The population growth rate in urban is higher than that of the rural.

Effect on RPC Urbanisation

Figures in Lakhs # Publication Gross AIR Gross Circulation Average RPC

Upto 50% urban readership 50-75 % urban readership > 75% urban readership

62 68 60

670 1180 302

140 215 139

4.8 5.5 2.2

Understanding RPC - Affluence

The Indian Consumer Pyramid

Understanding RPC - Increasing Affluence

TG : All India (U+R) Population % Distribution

2005 Samriddha I Samriddha II Sampanna Siddha Unmukh Saamanya Sangharshi Nirdhan 0.6 0.6 2.5 3.7 10.6 10 49.6 22.2

2006 0.7 0.7 3 4 11.5 10.2 51.0 18.9

2007 0.9 0.8 3.1 4.3 12.1 10.2 49.2 19.4

2008 1.0 0.8 3.2 4.5 13 10.5 47.5 19.4

% Change (2005-08) 53 39 25 21 22 5 -4 -13

The Living Standard of the country is steadily going up Expectedly, own copy reading is now increasing

Summary - Understanding RPC

Significant increases in affluence and urbanization are driving more regular readers to get their own copy Smaller family sizes and declining reading among the young also reduces the scope of the same copy being read by multiple individuals These factors combine to show a steadily declining RPC, a trend that seems likely to be sustained, as has been seen in more developed countries

A Segmented View

Share and Growth by Age

TG : All India (U+R) Press Reach

ANY PUB TR All 12-14 15-19 20-29 30-39 40-49 50+

2005 2008 (TR) (TR) 29,13 32,34 3,07 5,26 8,33 5,46 3,50 3,51 3,17 5,78 8,48 6,41 4,27 4,25

% TR Change 11.1 3.2 9.8 1.8 17.3 21.8 21.1

% AIR Change -8.4 -22.8 -12.4 -16.5 -5.1 4.7 5.8

The 20-29 age group contributes a lot to the reader base. This group is not showing much growth in reach and also shows sharp AIR declines Efforts need to be devoted to this group to have higher impact on readership.

Share and Growth by Gender

TG : All India (U+R) Press Reach

ANY PUB TR All Male Female

2005 2008 (TR) (TR) 29,13 32,34 20,15 22,20 8,97 10,15

% TR Change 11.1 10.2 13.1

% AIR Change -8.4 -10.7 -2.8

Efforts of the Print industry to involve women readers seems to be working to some extent. The reach in this segment is growing, and AIR declines are much lower

Share and Growth by Pop-Strata

TG : All India (U+R) Press Reach

ANY PUB TR All 40L+ 10-40L 1-10L Below 1L Rural

2005

2008

% TR Change 11.1 3.0 10.4 13.6 8.8 13.0

% AIR Change -8.4 -8.7 -3.4 -2.3 -12.6 -10.3

29,13 32,34 3,88 2,37 4,09 3,44 4,00 2,61 4,64 3,74

15,35 17,35

The 1-10 Lakh pop-strata is growing at a faster rate than any other pop-strata. The decline in AIR is the lowest in it.

Share and Growth by SEC

TG : All India (U+R) Press Reach

SEC All A B C D E R1+R2 R3+R4

2005 29,13 2,14 3,19 3,38 2,95 2,11 4,68 10,67

2008 32,34 2,42 3,46 3,60 3,17 2,34 5,79 11,56

% TR Change 11.1 12.9 8.5 6.6 7.5 10.9 23.6 8.4

% AIR Change -8.4 5.8 -3.4 -10.6 -14.6 -14.7 3.4 -18.4

The TR has shown growth across all SEC classes. SEC A is contributing to both TR and AIR readership.

Summary of Segments
Town Class TR AIR TR All Age 12 -14 ++ TR + AIR AIR - - - Major threat --Strong Strong 40 L + 10 40 L 1 10 L <1L Rural SEC A B C D E Build TR ++ ++ + + ++ + -Major threat ++ ++ ++ - ++ - AIR + ----Affordability? Strong Affordability? Strong

15 - 19 ++ 20 - 29 + 30 - 39 ++ 50+ Gender Male Female

40 - 49 +++ + +++ + TR ++ ++ AIR --

R1/R2 +++ + R3/R4 ++

International Trends
Country USA UK France Mexico South Africa Brazil Russia China India (Urban) India (40L+) Lit. 99 99 99 91 86 89 99 100 83 88 TG 18+ 15+ 15+ 12+ 16+ 10+ 16+ NS 12+ 12+ Covera ge All All All 9 cities All All All 30 cities All 7 Cities Daily Reach 50 44 44 35 25 52 11 61 34 40 Reach / Literacy 50 44 44 38 29 58 11 61 41 45 Source Scarborough NRS EPIQ 2006 Ipsos Marplan AMPS Ipsos Marplan TNS Gallup Media, NRS CIPS IRS IRS

To Summarize
Reach of Press, as well as of other media, show an increasing trend In terms of regularity of consumption, Press seems to be declining, whereas other media show an upward trend While TV and Radio show increasing fragmentation, Press is not thus leading to higher time spent per title RPCs continue to show a declining trend explained by higher own copy reading, smaller family sizes, increasing urbanization and increasing affluence. SEC A and 40+ individuals are the strongest segments for Press. The lower reading habit among young people is the most important threat

Thank You