MEDIA SERVICES

Industry overview

Media industry in India is among the fastest growing industries

of the present Indian economy.
The media industry has benefited a lot from the Indian current
economic growth coupled by the rising earnings levels in India
Indian media and entertainment industry stood at US$ 12.91
billion in 2009, up 1.4 percent over the previous year.
The industry is slated to grow at a compounded annual growth
rate (CAGR) of 13 per cent by 2014 according to a report by the
Federation of Indian Chambers of Commerce and Industry
(FICCI) and research firm KPMG.
Key drivers for media industry

• Enabling regulations related to

 Regulati
on
broadcasting, print and radio by the
Government
• Development of content for niche viewers
 Consume
Content
• Pricing remains a key driver, whether it is

rism

for cable subscription, film tickets or

 Key newspaper prices
Drive
rs
• Increased consumerism and increased
advertisement spend by marketers
 Advertisi
 Pricing
ng (i.e.more revenues for media companies)
spend fueling further growth
• Use of technology for special effects,
 Technol
ogy
animation and other creative work leading
to better quality of media products
Classification of media industry

1. Broad casting media;

Radio, Television, Internet, webcasting, IPTV,
Satellite & cable tv, films.
2. Print media;
Newspaper, journals, magazines.
3. Advertising media;
Advertising agencies (in house & outsourced)
 Television sector in india

 In 2009, television industry stood at US$ 5.65 billion registering a growth of 6.8 per
cent. The industry is projected to grow at a CAGR of 15.5 and reach around US$ 11.45
billion by 2014. It was mainly due to ;
a) Growth of TV Channels in India; The number of private satellite TV channels has grown
astronomically over the years, from 1 TV channel in 2000 to 394 TV channels in 2009.
b) Foreign Broadcasters: A total of 67 TV channels, uplinked from abroad, have been
permitted registration to be down linked in India during the years 2006-2009.
c) DTH Service: Apart from Prasar Bharati’s DD dirrect, Dish TV India Ltd., Tata Sky
Ltd, and Sun Direct TV Pvt. Ltd., Reliance Big TV Pvt. Ltd., Bharti Telemedia Ltd and
Bharat Business Channel Ltd have also been granted license for operating DTH services
 What do the viewers watch in India?

 3
 4 1
%
 2
% %
 8
%
%  39 Mass Entertainment
%
Hindi Film Channels
 5 Kids Channels

% Regional Channels

English Entertainment

Music Channels
News Channels
Sports Channels

 38
%
Internet Protocol Television (IPTV):
  The policy on Internet Protocol TV (IPTV) was announced in the year
2008 by the Government. This opened up the doors for another mode of
distribution of signals by close to 400 permitted satellite TV channels
through telecom networks.
Mobile TV: 
 Mobile TV is another mode of distribution of TV channels. A joint group of
Ministry of Information & Broadcasting (MIB) and Department of
Telecommunications (DoT) has considered the regulatory and licensing
issues of mobile TV.
Radio sector;

 In 2009, Indian radio industry stood at US$ 171.38 million and is expected
to grow at a CAGR of 16 % over 2010-14 and reach a size of US$ 360.32
million by 2014.
 FM radio: In 2009, total 248 Channels are operational including the 21
channels operationalised in the phase I.
Film Industry;
 Indian film industry stood at US$ 1.96 billion in 2009.The industry is
projected to grow at a CAGR of 9 per cent and reach US$ 3 billion by
2014.
 Growth drivers for the sector would include expansion of multiplex screens
resulting in better realisations, an increase in the number of digital screens
facilitating wider releases, higher cable and satellite revenues, improving
collections from the overseas markets and ancillary revenue streams like
DTH, digital downloads,
Breakup of Indian films market
% 8%
1 i H in d C r o s s o v e r H in d i

15% T a m il T e lu g u

45% F o r e ig n M al a y a la m

B e n g a li O th e r s

• Hindi films account for almost half of

17% the total market
• Foreign films, primarily from Hollywood
% %
10 2 2
%
have a market share of 2%
• Regional language films account for the
rest of the market
• Dubbed Hollywood films a new trend
PRINT MEDIA
 The structure of the Indian print media industry is highly fragmented with
importance to regional dominance.
 The Indian print media segment primarily comprises newspaper and
magazine publishing.
 Book Publishing also forms part of the print media though currently the
share is not substantial
 Print media industry is projected to grow by 5.6% over the period 2009-13,
reaching to Rs.213 billion in 2013 from the present Rs. 162 billion in
2008..
 Magazine publishing is expected to grow at a higher rate of 6.5% as
compared with newspaper publishing which is expected to grow at 5.6%
for the next 5 years.
 Growth drivers

Higher literacy levels: In 2009, the literacy levels increased to 73.1% as compared
to 71.9% in 2008. While rural literacy is at 64.8%, urban literacy touched 85.3%.
 Currently Indian print media is estimated to reach over 220 m people, and has

immense growth potential since close to 370 m literate Indians are believed to not
be served by any publication. Also, the reach of newspapers is only 27%, as
compared to the global average of 50%. 

Lower cover prices: Earlier, due to strong hold over a region, the newspaper had
higher cover charges. However, with increasing competition and venture into newer
regions the companies have reduced the cover prices to augment more sales.
Many English dailies are sold for as low as Re 1 or Rs 2, further reduced the cost of

the newspaper to around 50 paise for an average issue

Higher ad spends: Print media accounts for 48% of the total Rs 137.5 bn advertising
spend in the country. However, the ad spend in India is just 0.4% of GDP as against
0.5% in China, 1.3% in the US and a world average of nearly 1.0%.
Readership analysis
 Leading Newspapers in India
 Vernacular  Readership (Million)
 Dainik Jagran  21.2
 Dainik Bhaskar  21.0
 Eenadu  13.8
 Lokmat  10.9
 Amar Ujala  10.8
10.4
Hindustan


Daily Thanthi  10.4
 Dinakaran  9.6
 Rajasthan Patrika  9.4
 English
 Times of India  7.4
 The Hindu  4.1
 Hindustan Times  3.9
Advertising
 Advertising industry of India is of US$ 5.2 billion and is
set to grow at a compounded annual growth rate (CAGR)
of 14 per cent in 2011, In comparison to the last year.
 Internet advertising US$ 185 million  which will grow
about 30 per cent per annum, establishing itself as the
fastest growing advertising medium.
 For every hundred rupees spent by advertisers, Rs 91 is
spent on television and the print media while the outdoor
media accounts for Rs 5. The rest is divided between
cinema, radio and the Internet.
Top Advertising Companies Of India

 Ogilvy and Mather

 J Walter Thompson India
 Mudra Communication Pvt. Ltd
 FCB-Ulka Advertising Ltd
 Rediffusion-DY&R
 McCann-Erickson India Ltd
 RK Swamy/BBDO Advertising Ltd