Media Management and Enterpreneurship

Unit-1
Notes

Unit I: [Media Organisation - Structure and Functions]

1. Media Organisation: Meaning, Structure and Importance
2. Ownership Patterns of Media Organisations
3. Cross Media Ownership and Conglomerates: Case Studies of Times Group and Reliance
Communication
4. FDI in Indian Media and Entertainment Industry

Media Organisation - Meaning

Media Organization is a deceptively simple term encompassing a countless array of institutions and
individuals who differ in purpose, scope, method, and cultural context. Mass media include all forms
of information communicated to large groups of people, from a handmade sign to an international
news network. There is no standard for how large the audience needs to be before communication
becomes "mass" communication. There are also no constraints on the type of information being
presented.

Media Management includes the following:

 Running a media organization like a newspaper, Television channel, radio station, media educational
institute
 Marketing and advertising of Print and Electronic media
 Event promotion and production
 Print and web design
Media Management includes connecting all aspects of media like Promotion, Production, Duplication,
Marketing, Management, Graphic Design, Photography, Video, Audio, TV, Radio and the Web.
Importance of media management

Organisational Structure of Print media organisation

• Editorial department
• Advertising department
• Printing/ Production department
• Administration department
• Finance department
• HR/Personnel department
Organizational structure of a radio station (AIR)

Director General

Administratio
Audience research
Programme wing News wing Engineering wing And accounts
wing
Wing

ADG
Engineer in chief Director
(Admin)

ADG
Joint director
(Finance )

The type of organisation and the principles of management adopted by a broadcasting station will
depend on its size, range of operations and ownership. In our country, radio broadcasting had been the
responsibility of All India Radio funded by the government. A number of radio stations in the private
sector are coming up. A number of educational channels operated by IGNOU known as Gyan Vani
have come up and more are to be commissioned. The NGO sector may also set up community
broadcasting stations as and when Government regulations penn it. Their organisational pattern would
be different depending on their size, financial outline activities to be undertaken. In this unit, we shall
discuss the organisational structure of All India Radio.

PROGRAMME WING

Each station is equipped with facilities for programme production and presentation. The Programme
Wing is divided into a number of production units such as; the Talks Unit, Women and Children's
Programmes Unit, the Farm and Home Unit (for producing rural programme), Youth Programmes
Wing, the Education Programme Unit, Science Programme Unit, Music Units (for classical, light and
folk muslc programmes) Outdoor Broadcasting (field based) programme, Morning Information
Programme and Senior Citizen Programme Units. In some stations, there are Western Music and
Industrial Workers Programme Units.
The Director General is assisted by Additional Directors General (ADG’s) in the Headquarters and in
the regions. The Headquarters of the Regional ADG’s are at Bhubaneshwar (ER-I), Kolkata (ER-II),
Mumbai (WR-I,WR-II), Lucknow (CR-I), Bhopal (CR-II), Guwahati (NER-I), Aizwal (NER-II),
Chennai (SR-I), Bangalore (SR- II), Chandigarh (NR-I), Delhi (NR-II).
ENGINEERING WING

The head of the engineering wing is a Station Engineer superintending Engineer. She
controls and coordinates all the technical activities of the stations. S/he is assisted by Assistant
Station Engineer, Assistant Engineer, Senior Engineering Assistant, Engineering Assistants and
Technicians. They handle all programme origination and transmission, including relays from
Delhi or other stations. They are responsible for maintenance and operation of the technical
facilities created at the station.

In respect of technical matters the Director General is assisted by the Engineer-in-Chief and
Additional Directors General(E) in the headquarters and the Zones. In addition there is a
Planning and Development Unit in the Headquarters in respect of Development Plan Schemes
of All India Radio. For Civil Construction activities, the Director General is assisted by
the Civil Construction Wing(CCW), which is headed by a Chief Engineer. CCW also caters to
the needs of Doordarshan.

ADMINISTRATIVE WING

This is headed by an Administrative Officer assisted by a head clerk, accountant and a

number of assistants.

Additional Director General (Administration) and a Deputy Director General(Administration

& Finance) assists the Director General on matters of administration and finance, while
Additional Directors General (Programme) assists DG in administration of Programme
personnel. A Director looks after the Engineering Administration of All India Radio.

SECURITY WING

The security set up comprises of a Deputy Director General (Security), Assistant Director
General (Security) and a Deputy Director (Security). They handle matters of the security and
 safety of AIR installations, transmitters, studios, offices etc. The Security needs of
Doordarshan are also looked after by these officers.

AUDIENCE RESEARCH WING

An Audience Research Officer, supported by field investigators conduct feedback studies which
help the station to formulate their programme-fare. The Audience Research Wing also conducts
formative research studies to provide the programmers with a profile of the audience, their tastes
and preferences.
The Director Audience Research heads the Unit of Audience Research in the Directorate. Surveys to
gauge listening habits and programme preferences for effective programme planning at various
stations of All India Radio are handled by field units under the supervision of the Directorate.

NEWS WING
Deputy DGS

Director

Joint Directors (at regional news )

News editor

Assis news editor

Correspondents/reporter/newsreaders cum translators

Programme Wing
Youth programme/ Education programme/ Music units

Producers

Assistant producers/ Reporters/ Script writers/Presenters

Organisational structure of Private radio station

Organisation structure of TN news channel

There are many different staffing arrangements in Television stations. Some big city stations
employ300-400 people and may be divided into dozens different departments. Small town
stations may have20-30 employees and only a few departments.

Normally General Manager is the head of a television station, the person ultimately responsible
for all station activities. The Sales department is responsible for selling time to local and national
advertisers, scheduling advertisements, sending bills to customers.

Maintaining all the equipment is the responsibility of Engineering Department. The Production
Department puts together locally produced programming. At many stations the programming
function is also handled by the production department. Those involved in programming decide
what programmes should be telecast and at what time they should be presented.

The News Department includes the news director, anchorpersons, reporters and writers
responsible for the station's newscast. The Administrative Department supports the General
Manager in running the station.
At the network level, the divisions are somewhat more complicated. Although the major
networks differ in their setups, all seem to have departments that perform the following
functions:-
 Sales: handles sales of network commercials and works with advertising agencies.
 Entertainment: works with the producers to develop new programs for the networks.
 Owned and operated stations: administers those station owned by the networks.
 Affiliated Relations: A very important job in the new century, it supervises all contracts
with stations affiliated with the network and generally tries to keep the affiliates happy.
 News: responsible for all network news and public affairs programmes.
 Sports: responsible for all sports programming.
 Standards: checks all network programmes to make sure they do not violate the law or
the networks own guidelines for appropriate content.
 Operations: handles the technical aspects of actually sending programmes to affiliates.

Infrastructure or organizational set up and Working of a TV channel

For a television organization to manage the affairs there is a Board of Management or Board of
Governors or Board of Directors. The Chief Executive or Chairman or Managing Director
approved by the Board, is the Administrative and Executive Head of the Corporation.

Human Resources or Administration & Personnel Department

This department is responsible for formulation and implementation of administrative policies.
Admin & Personnel Department consists of two sections "Administration section" and
"Personnel Section". The overall head is Director whereas at centers Executive Administration &
Personnel Manager heads it.

Program Department
Programmes Department is responsible for making programmes like dramas, music, infotainment
and religious programmes and miscellaneous programmes. The Director Programmes heads this
Department whereas Executive Programmes Manager is the person in charge.

News Department
This department is responsible for news gathering, production and Telecast through news
bulletins. This department is headed by Director News and Senior News Editor is the in charge.

Sports Department
Sports Department is to provide sports entertainment to viewers and is headed by Director Sports
and there are Sports Producers at different centers as well. Apart from occasional International /
National sports coverage TV channels also televise live national and international sports around
the world.

Engineering Department
The Engineering Department takes care of the day to day operations and maintenance of a TV
network and Rebroadcast Stations, new projects, Planning & Procurement, as well as research and
Development activities. At national level Director Engineering is the while at centers Executive
Engineering Manager may be the in charge. Training Courses Such courses impart professional
training in various disciplines of television broadcast technology. It may be headed by a full time
Director, and is assisted by a team of television professionals who are members of the academic
faculty.

Marketing Department
The Marketing Department of TV network is responsible for marketing the programmes and the
commercial time on its screen. It is the major source of any TV network earnings. It is headed by
Director Marketing at large stations and by General Managers at the small stations. Advertisers
can book commercial spots in the commercial breaks provided between programmes and can also
sponsor programmes shown on a TV network.

Information Technology
The Information Technology Department is responsible to deal the IT up-gradation and solutions to
bring improvement on screen and ensure non-stop programming. It is headed by Controller at large
stations and IT in charges small stations.

Finance Department
Finance Department is headed by Director Finance large stations and by Executive Manager
Finance at small stations. It has to record all business transactions according to the prevailing tax
laws and accounting principles.

Sub-Departments

Camera Department
This is a sub department of programmes production Department. It is headed by chief
cameraman & is supported by cameramen, light men, still photographer.

Design Department
This department is responsible for set designing and erection of sets in the studios and outdoors of
 various a TV network programmes. It is headed by the Design Manager and consists of designers
& other support staff and studio hands.

Make-up
This is a sub section of programmes department & deals with the make-over & get ups of the
talents according to nature of the programme.

Presentation Section
This section comes under programmes department & handles the Scheduling & broadcast of
programmes/ advertisements.

News Department
The news department does reporting and local content for the daily newscast. This department is
run by the news director, who enforces editorial policy and hires and manages staff. The rest of
the news department consists of both on-air and off-air positions. Newscasts require an anchor, a
sports person, a meteorologist, and correspondents or reporters. Behind the scenes news staff can
include a desk assistant, who monitors news and can refer stories to reporters; researchers, who
provide background for stories; producers, who write scripts and perform technical duties for the news
show; and online staff,
Ownership patterns of media organisation

Sole Proprietorship: It is owned and controlled by a single person. The advantage of this type of
ownership is that there is complete independence for the owner. It gives tremendous opportunity to
individuals to use their talent. As entire organisation is controlled by individual owner therefore it
becomes easy for him to take quick decision and manage the routine work without interference. In this
type of ownership it is easier to maintain the secrecy of information. Only that information is
disseminated which helps in better conduct of work. There are certain disadvantages of sole
proprietorship as well. In sole proprietorship there might be lack of resources for further growth of
business. There is an unlimited personal liability and there are greater economic risks. There are
several newspapers which come under this type of ownership, e.g. Aas Pass (Owned by Pashupati
Joshi) and Muslim Herald (A.M Sameer).

2. Partnership: This type of ownership is managed by two or more persons. These partners enter into
a legal contract in which each agrees to furnish a part of the capital and labor for a business enterprise,
and by which each shares a fixed proportion of profits and losses. The advantages of partnership are:
Optimum use of resources, increase in profits and easy to manage the work. There are some
disadvantages of partnership also. Sometimes unlimited liabilities put partners under pressure.
Partnership life remains uncertain and dishonest partners creates atmosphere of suspicion.

In a partnership there could be various types of partners:

(a) Active Partner: They are those who arrange for capital, share profit and actively participate in
business.

(b) Sleeping Partners/Dormant Partners: They arrange for capital, share profit but do not participate in
business.

(c) Nominal Partners: They lend their name and credit to the organisation but neither arrange for
capital nor actively participate in business.

E.g. Mint newspaper is having partnership between HT Media and News Corp.

3. Joint Stock Company: It is an organisation that falls between the definitions of a partnership and
corporation. This type of company issues stock and allows for secondary market trading; however,
stockholders are liable for company debts. According to James Stephens¹-“A company is an
association of many persons who contribute money or money's worth to a common stock and employs
it in some trade or business, and who share the profit and loss arising there from".

The joint stock company can be divided into two types of companies that are:

(a) Statutory Corporation: These are made by passing an Act of Parliament.

(b) Companies registered under the Companies Act. On the basis of liability, these companies may be
further classified into three categories:

(i) Companies that are limited by shares. (ii) Companies that are limited by guarantee.

(iii) Unlimited Companies. (They do not exist anymore). Companies can also be classified into two
groups (1) Private and (2) Public. In private limited companies there are minimum 2 shareholders and
the maximum can be up to 50 shareholders. The members may be restricted to transfer their share.
General member of public are not allowed to purchase shares. Most of the media organisations set up
on the pattern of joint stock are private limited companies.ie. The Times of India, Amrit Bazar Patrika
and The Hindu. In public companies there are minimum 7 shareholders and there is no upper limit for
membership.

4. Trust: They are managed by persons from various fields and are run for some social purpose. Some
of the newspapers published by trust are: Tribune and Dainik Asha ( Berhampur, Orissa).

5. Societies: It is the organisation which is formed by the people for social purpose. Societies are those
organisations which are registered under the Societies Registration Act. Some of the newspapers which
are published by some societies are: Praja Tantra (Prachar Samiti, Orissa), Samaj (Servants of People
Society Orissa), Hitavada (Servants of India Society, Nagpur).

6. Corporatives: Corporatives are those organisations which divide the profits equally among their
members. Corporative can be set up for serving any particular interest of society. All the members
share the work and share the profit and extra fund is used for expansion of business. Some of the
newspapers which run on the corporative ownership are: Makkal - Kural, Jan Varta, and Jan Morcha
(Faizabad).
Cross Media Ownership and Conglomerates: Case Studies of Times Group and Reliance
Communication

Reliance Communication Case study

Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in
Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy,
petrochemicals, textiles, natural resources, retail, and telecommunications.
n 2008, he invested over $655m into ETV - a major regional media player. A year later, he loaned
more than $80m to NDTV, one of India's most influential national broadcasters. Then, in 2012, in his
biggest media deal, he bought out Network 18, one of the largest media houses in India for almost
three-quarters of a billion dollars. It took Ambani less than five years to become an Indian media
mogul without equal.
Five Indian news media companies — NDTV, News Nation, India TV, News24 and Network18 — are
either indebted to Mukesh Ambani, the richest Indian and the owner of Reliance Industries, or to
Mahendra Nahata, an industrialist and associate of Ambani’s, who is also on the board of Reliance’s
new telecom venture, Reliance Jio.
In May 2014, Reliance Industries Limited (RIL) acquired Network18 for Rs 4,000 crore which was
criticised as the death of Indian media independence.
What Reliance has achieved by becoming the biggest player in India’s mass media industry is that it
has enhanced its ability to influence public opinion through the media, thereby also strengthening its
hold over the working of the country’s political economy.
In February 2020, Reliance Industries announced a consolidation of its media and distribution
businesses spread across multiple entities into Network18.
Under the new arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will
merge into Network18 Media & Investments.
Network18 shall, along with affiliates, have leading positions across the growing media and
distribution landscape in India:
 13% share of TV viewership in the country o #1 News network and #3 Entertainment network
in India by viewership
 56 channels across News and Entertainment, spanning 15 languages
 1 in 4 internet users in India are on the group’s websites or apps o MoneyControl (#1 Finance
app) o Voot (#2 Broadcaster OTT)
 News18.com (#1 Regional News destination)
 12.5% share of India’s cable & satellite pay-subscriber base o #1 cable platform, covering
~30% of India’s cable subscriber base
 Presence across 18 states
 6.7% share of the country’s wireline broadband subscriber base
 India’s wireline penetration is amongst the lowest in the world at ~7%, affording significant
headroom for growth
Reliance JIO
Just as Reliance used its oil monopoly to leverage itself into becoming the leading Indian telecom
player in just four years, it is now leveraging its leading telecom position to create new monopolies
that will provide digital services over this network. It is also eyeing a place in building of future 5G
networks in other countries, aligning itself with the US against China in the 5G tech and trade war.
Jio has lured customers by offering super low-cost access to a state-of-the-art network. Its generosity
relies on the financial strength of parent company Reliance Industries, India's most valuable firm.
Hooked on a daily feed of cheap gigabytes, Jio's customers won't care.
Over $20 billion of investment has rolled into Jio Platforms in the past three months, from some of the
biggest names in technology, fueling fears Jio's monopoly of India's telecoms industry is unstoppable.
The recent ban covering 59 Chinese apps, including Tiktok, UC Web and Shareit, can only help Jio-
Facebook combined dominate India's digital ecosystem. The apps were banned because of tension on
the India-China border earlier in 2020.
While Jio might have competitors in different segments, like Airtel in connectivity, or smartphone
makers in devices, it doesn't really have a direct counterpart – and that could adversely impact the
country's entire digital ecosystem.
Times Group Case Study

Bennett, Coleman and Company Limited, commonly known as The Times Group, is India’s largest
media conglomerate, according to Financial Times as of March 2015. The company remains a family-
owned business with Sahu Jain family owning a majority stake in The Times Group. The Times Group
has over 11000 employees and revenue exceeding $1.5 billion.

It has a presence in variety of media outlets and publications, in addition to music, fi lms, syndication,
education, financial services, event management, out-of-home (OOH) advertising, and real estate. It is
one of the largest media houses in India, and publishes among the country’s most famous
publications. Times of India, one of the world’s largest-circulated English dailies, is published from a
number of cities across India. Its other significant publications are Economic Times, Navbharat Times
and Maharashtra Times. They also publish the renowned magazines, Femina

Foreign Direct Investment (FDI)

Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an
investor, company, or government from another country.

Generally, the term is used to describe a business decision to acquire a substantial stake in a foreign
business or to buy it outright to expand operations to a new region. The term is usually not used to
describe a stock investment in a foreign company alone. FDI is a key element in international
economic integration because it creates stable and long-lasting links between economies

FDI in indian media and entertainment industry

The ministry of information and broadcasting (MIB) is the nodal ministry for the formulation of FDI
policies in the broadcasting, film, print and advertising sectors. FDI in both film and advertising
sectors is permissible up to 100% on the automatic route without any other conditions. The FDI limit
in print media and digital news has been capped at 26%. The FDI limit in TV news and FM radio has
been kept at 49%. The FDI in cable, DTH, and entertainment broadcasting is 100%.
Advantages of FDI
1. FDI stimulates economic development
2. FDI results in increased employment opportunities
3. FDI results in the development of human resources
4. FDI enhances a country’s finance and technology sectors