Indian Media
Industry
Television, Print, Advertisement &
Radio
Entertainment & Media
Industry
• Growth outperforms the economy
• One of the fastest growing sectors of the
Indian economy
• Current Size : Rs 40,230 Crore
• Estimated growth rate : 20 % over the next 4
years
Source : PwC analysis
The Growth Drivers
Rising proportion of Increase in Changing spending
young population income levels patterns
Consumerisation of urban India
Increase in number Increase in Rising aspiration
of working urbans spending power levels
Consumption of lifestyle items
Source : Lifestyle consumption by Edelweiss Securities Pvt Ltd
Technology is changing the face of
Media Industry
E&M Sector Films Television Radio Media Music
Commercial (Hindi Commissioned Commissioned News & Current Film Music
Content
& Regional) Cinema Programs Programs Affairs Private Albums
Art Movies News & Current Fiction/Non
Cartoon Movies Affairs Fiction Articles
Cinema Halls Mobile Cable Public Internet Newspapers Cassettes
Delivery
Home Videos Phones Terrestrial Broadcaster Magazines CDs
(Video Cassettes, DTH FM Channels Books
VCDs, DVDs,) IPTV
---------- Straight line denotes Traditional Delivery Mechanisms
- - - - Dotted line denotes Converged Delivery Mechanisms
Source : PwC analysis
Major constituents
Outdoor Advertising
2.5%
Internet Advertising
Live Entertainment
0.3%
2%
Television
Print Media 41.9%
30.9%
Radio
0.8%
Films Music
19.3% 2.0%
Television
Avenues
Production/co-production of content
Broadcasting of TV channels
Distribution of TV channels through cable and new delivery platforms like DTH and
IPTV
Technology transfer for digital content creation
Marketing of TV rights/air times
Strategic investment in existing companies in broadcasting, distribution and content
An Explosion Of Channel
Choices
350
300
250
No of channels
200
150
100
50
0
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
New launches & delivery mechanisms lead to
exponential growth in number of channels
Source : TAM
Industry size & growth
potential
45000 42700
40000
35000 32700
30000
25000
INR Crore
25000
20300
20000 17000
14800
15000 12870
10000
5000
0
2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F
Industry projected to grow at an annual compounded
rate of 26% per annum over the next 4 years
Source : PwC analysis
Growth Drivers
• Subscription
Projected CAGR of 29 % over the next 5 years
Current average monthly collection : Rs 130.
Projected : Rs 250 (by 2010)
• Advertising
Ad spend in India : 0.48 % of GDP ;
global average = 0.96%
Increased reach of the medium due to expanding
delivery platforms and technology advancements
Software
Sustained growth in this sector
• Frequent & never ending launch of 24 hour channels
leading to demand for content
• Regional channel potential being tapped by national
players. Increased demand for language programming
• Better performance of dubbed foreign content (movies,
cricket commentary , cartoons) will increase demand for
such services
Print
TYPES OF PRINT MEDIA
o NEWSPAPERS
o MAGAZINES
o DIRECTMAIL
o YELLOW PAGES
Growth in
titles
60000 58469
58000
56000
54000
52000
50000 49145
48000
46000
44000
2001 2003-04
Registered publications
Source : RNI
Industry size & growth
potential
25000
19500
20000
17300
15300
15000
INR Crore
13500
12100
10900
9780
10000
5000
0
2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F
Industry projected to grow at an annual compounded
rate of 13% per annum over the next 4 years
Source : PwC analysis
Growth
drivers
• Booming economy resulting in increased job
creation
• More number of household with high spending
power - service sector boom
• Rural / lower SECs provide vast opportunity for
print players
• IT advancements will lead provide easy access
to rural areas
Key
trends
• Tapping the reading population :
• The readership of print media currently stands at 27 %
• Growth will be driven by increase in literacy levels
• 7 dailies in India have readership over 1 Cr: Dainik Jagran,
Dainik Bhaskar, Eenadu, Lokmat , Amar Ujala, Hindustan
and Daily Thanti
• Building a pan-India presence
• Publications drive growth through geographic expansion
• Eg: HT launch in Mumbai, Deccan Chronicle in Chennai,
Midday in Bangalore, new editions from Dainik Jagran,
Bhaskar, Business Line in Mumbai
Source : NRS
Key
trends
• According to World Association of
Newspapers (WAN)
• Indian newspaper sales increased 7 % in 2005
(vs 0.56 % worldwide) and 33 % during 2001-
05 (vs 6 % worldwide)
• India is the 2nd largest newspaper market with
7.8 Cr copies daily (China – 9.6 Cr)
• Indian newspaper advertising revenue
increased 23.2% over 2004 (vs 5.7 % globally)
Radio
FM
Radio
• Sector opened up after years of
government dominance
• 338 licenses given away for 91 cities in the 2nd
phase of radio privatisation
• 20 % FDI allowed by government
• Eg: Virgin Radio tie up with HT Media, Mid day
& BBC for Radio One
• Revenue share agreement in contrast to
the earlier fixed license fee regime
• Only 20 stations were set up after auctioning of
108 frequencies during round 1 of
privatisation
FM
opportunities
• Investments
• Need for financial investments as well as
technical and operating experience to run the
stations
• Content boost
• Average requirement expected to be 5000
content hours per annum per radio channel
• Potential to reach local markets
• Only 22 of the 338 channels are in the four metro
cities
• Huge potential to target the smaller cities
Industry size & growth
potential 1400
1200
1200
1000
1000
800
INR Crore
800
600 550
370
400 300
240
200
0
2004 2005 2006 E 2007 F 2008 F 2009 F 2010 F
Industry projected to grow at an annual compounded
rate of 35% per annum over the next 4 years
Source : PwC analysis
Growth
tune
• India has over 190 million radio sets reaching 99% of the population
• New platforms to access radio like satellite radio, mobile phone radios
and internet radio growing fast
• Revenues in 2007 - USD 0.08 bn
• Expected revenues in 2010 - USD 0.26 bn, a CAGR of 32%
• Ad spend on radio set to increase with more FM radios operational
Radio going
global
• Indian channels on international satellite radio
services like World Space
• RM Radio, Jhankaar, Gandharv, NDTV etc
• Numerous Indian stations reaching out to people of
Indian origin in foreign countries
• RBC Radio (US), Asianet Radio (Gulf countries)
• 24 hour Tamil station in Singapore ( Oli 96.8 FM)
• Numerous Indian stations in Trinidad, Fuji, Mauritius
• Strong advertising support from local / MNC clients
Advertising
• To create an awareness
• Presentation & promotional
of ideas, goals or services
• Marketing tool
ADVERTISING & MARKETING
COMMUNICATION
Target audience
Determine the objective
Designing the message
Selecting the channels
Marketing budget
FORMS OF ADVERTISING
Television advertising
Mobile advertising
Covert advertising
Info advertising
Hoardings & pamphlets
Creating an advertisement
• Ad agency
• Free lance – directors/producers
Prospects
• The general aptitude of MBA graduates help
them a long way in establishing a successful
career in media
• Besides rendering administrative services the
MBA graduates could shine as production
executives in audio visual media
• The advertising wing of media too offer plenty
of avenues for MBA Graduates
Functions of MBA graduates in
MEDIA
• Focusing on strategy implementation
• Acting as a change agent
• Brokering opportunities for innovation and
collaboration
• Ensuring communications
• Providing expertise and projects management
Employment
Survey
• Media has the highest employment opportunity
• 58% of additional manpower to be employed the
next 3 months
• More opportunities in north India
• M&E industry forms the most positive potential
employer with net employment with outlook of
58% for the second quarter of this year
• Service sector has emerged as the more
optimistic sector with media occupying about 8-
12% of the service sector
Avenues for MBA graduates:
• Magazine editor- with journalism background
• Advertising executive
• Radio production executive
• PRO
• Media marketing executive
• Space selling Executives
• Audio visual production
Thank you
