Electronic Media Industry

Saira Ansari (03)

Suyash Gupta (09)
Dhruvin Shah (20)
Rajiv Siddhartha (21)
Vinit Shah (29)
 What exactly is media???
• Channels of communication that serve many diverse functions, such as
offering a variety of entertainment with either mass or specialized appeal,
communicating news and information.

• Available types of media include print, electronic, out-of-home, and direct

mail.

• As technology advances, new forms of media are being discovered every

day, such as movie-house advertising and special automatic telephone
devices with prerecorded advertising messages .

• We in our presentation are concerned with electronic media - Electronic

media are usually referred to as broadcast media, or radio and television,
including cable .
 What exactly is media
(contd.)

• Any single form of communication is

known as a medium.
 What exactly is Electronic
Media???
• Electronic media are media that utilize electronics or
electromechanical energy for the end user to access the
content.

• The primary electronic media sources familiar to the general

public are better known as video recordings and audio
recordings .

• Although the term is usually associated with content recorded

on a storage medium, recordings are not required for things
like live broadcasting.
 Industry Outlook
• Media Industry is one of the fastest growing sectors – not
only in India but the rest of the world.

• Universe of 219 million households in India

• Colour TV homes have increased to 64 million from 58

million last year.

• Television has been identified as the strongest medium

to reach the early 20s target group , which is the most
active media consumer and has the highest purchasing
power.

• Efforts are been made to redefine distributive strategies

 Industry Outlook (contd.)

• Economic growth, consumerism, rising income levels

coupled with technological advancements and other
key initiatives are the key factors.

• The Electronic Media Industry is poised to grow at

19% compound annual growth rate to reach Rs
83,740 crore by 2,010 from its present size of Rs
35,300 crore.

• The Electronic Media industry is forecasted to

outperform the economic growth till the year
2010.
 Industry Outlook (contd)
• The stupendous growth which is occurring in the electronic media
industry is without much government support

• An interesting fact is that an urban cable home in the 4 metros

currently receives approximately 100 TV channels

• Global Media Majors like Disney and Bertelsmann have announce

their entry into Indian screens , but the ground scenario is different.

• The competition prevailing in the industry is mainly Oligopoly.

Projected Growth
 Industry Leader- Star TV
Network
• Launched in India in 1991 with just 5 channels STAR pioneered
satellite television in India as well as in Asia .

• Pioneered explosive growth in the media industry across the

region.

• Today STAR provides sixty services in nine languages

• Sports, documentaries , movies and daily soaps are few types of

entertainment offered by STAR TV network.

• Reaching over 300 million viewers in 53 countries across Asia ,

it is watched by 100 million people everyday.
Channel Bouquet
 Channel Share

• Even though the share of STAR Network has fallen in 2006 , it still
has over half the market share, hence it is clearly the leader.

• The next competitor, namely ZEE TV , has less than half the share
that Star holds.
 Gross Rating Points

• GRP (short for Gross Rating Point) is the sum of

ratings achieved by a specific media vehicle or
schedule.
 Challenges
• Currently the media penetration is poor in lower socio-economic
classes, but efforts to increase it even slightly are likely to deliver
much higher results, simply due to the absolute numbers being
large. The sector needs a consistent and uniform media policy
for increase in investments.

• Also, the ongoing threat of piracy, which continues to hinder

investments in all sectors, needs efforts not just by the industry
bodies, but by government, with empowered officers enforcing
anti-piracy laws.

• The steady eating up of market share by ZEE.

 Challenges (contd.)

• The broadcast media pricing has been frozen for over a year
now, as per the notification issued by the TRAI.

• Since the market has been so efficiently regulated through

competition, price regulation would limit the STAR TV
networks ability to shape their business models based on the
market demand and the competitive environment .

• The major issue faced by the industry is the lack of

infrastructure. India has the challenge of building a broadband
digital network to reach every city, every village, every home
and every office.
 Opportunities
• The channel bouquet of Star has expanded to include regional
channels that can be a source of growth since a vast majority of the
untapped market is in the rural areas.

• The size of the industry is just going up and hence any presence in
any of the sectors of the Electronic media is likely to yield
dividends.
 Opportunities (contd.)

• The future of the STAR TV network will be driven by technology

giving a bunch of value-added features to the consumers and new
revenue streams for the players in each segment.

• The STAR TV network along with Television industry as a whole

will continue enjoying a lions share in the E&M industry and is
expected to continue growing rapidly and reach INR 371 billion by
2010 .
 Demand Forecasting

• Multiple Regression

• Y= a +b1X1+ b2x2

• The dependent variable is the income of Star TV network.

• The first independent variable is the advertising revenue of

the company.

• The second independent variable is the number of

channels.
Thank You !!!!