State of Indian Media

Indian Media Industry

20142013Overview Media and entertainment registered a growth of 11.8%Low rupee against dollarGrew from INR 821 billion in 2012 to INR 918 billion in 2013, at the rate of 11.8% Digitization, upcoming election, increasing new media business14.2% is projected growth rate for 2018

2014

2013The Way it is2014Overview Print Media Indian print industry grew by 8.5% and is expected to grow by 9%224 billion INR- 243.1 billion INR (2012-2013)The high dependence on advertisement revenuesFocused on consolidating their position in core markets and penetrating them further through the launch of regional dailies2014Varying newsprint prices (41,500 INR/$650-700)Decentralizing printing operation to reduce delivery timeGDP 4.9%- 2013-14Advertising is a prime contributor (67%)to the print revenue The Way it is

2014The Way it is

Strong faith of advertisers on this mediumNiche magazine witnessing high growth rateDeclining magazine industry Increasing cover price of newspapers and magazines

2014The Way it is

Subdued growth of English dailiesHigh growth rates in regional marketsHigh population rateRising literacy levelsRising incomeExpanded reach by launching newer editions in local languages or sub-editions by adding printing centers in the local areas. The Hindu launching a Tamil edition; Times of India launching a Gujarati edition NavGujarat Samay and Dainik Bhaskars entry into Patna.DB Corp has also consolidated its presence in MP with the launch of a 4th edition. HT Media also has separate editions for Gurgaon and Noida.

2014The Way it is

2013Testing various business models to identify the right monetization opportunitiesEnglish dailies launching vernacular dailiesSouth Indian markets driven by high literacy rates30% of AIR are contributed from SI statesTOI had shut down its elite weekly supplement CrestOutlook closed down Marie Claire, Geo, PeopleRupee depreciation had significantly impacted the revenueNo major mergers and acquisitions in print media

The Way it is

2013Literacy rates(IRS 2012)2013Literacy rates(IRS 2012)

2014Top 10 dailies2013Key Trends-PRINTTesting various business models to identify the right monetization opportunitiesEnglish dailies launching vernacular dailiesSouth Indian markets driven by high literacy rates30% of AIR are contributed from SI statesTOI had shut down its elite weekly supplement CrestOutlook closed down Marie Claire, Geo, PeopleRupee depreciation had significantly impacted the revenuePricing strategy- cover price increased

2013Key Trends-PRINT

HT launched page one plusTimes of India introduced a 3-Dadvertisement of the TV series Mahabharat The Hindu launched www.thehinduhub.comDAVP ad rates for print media raised by 19 %Print likely to gain at televisions expense (12 min ad Cap)

2013Key Trends- PRINT

2013Key Trends- PRINT

2013Key Trends- PRINT

2013Key Challenges-PRINTReadership Measurement: A challenge which remains unresolved IRS data has not been accepted by newspaper industryThe Media Research User Council Board (MRUC) Readership Survey Council of India (RSCI), are the two bodies that undertook the readership survey. Implementation of Majithia Wage Boardsupreme Court that asks newspapers and news agencies to implement the recommendations of the Majithia Wage BoardHave to pay their employees the revised pay scale with arrears from November 2011 2013Key Challenges-PRINTIndian print industry hit by depreciating rupee and increasing newsprint cost Weakening rupee-dollar exchange rate coupled with increasing newsprint prices Nearly 48 per cent of the newsprint used by Indian publishers is importedMagazines growth continues to be a challenge 60 pages annual magazine launched by Mumbai IndiansDiscovery Channel Magazine introduced by Discovery Networks Asia-Pacific and the India Today Group Industry wants to increase FDI Ceiling to 49 per centFDI limit in print media from 26 to 49 per cent stating that print companies need inflow of funds to expand and grow.

Television2014TelevisionDigitization process- Phase 2 citiesCarriage fee reductionIncrease in subscription revenue12 min ad capTVR to TVT (TV viewership per thousands)TV households 161 million-2013139 million c&s 2014TelevisionValue chainContent productionCreative, fragmented, low entry barriersIncreased production costHigher production qualityBroadcastingTRAI regulations on adAd revenueSubscription revenueCarrier costDistributionSTBMSO- DEN, SITI cable, ASIANET, HATHWAY, FASTWAYLocal cable operator2014TelevisionStatus of digitization:Phase 1: June 2012-98%Phase 2: March 2013-90%Phase 3: December 2014 (not yet begun)- rajkot, mysore, pune, sholapur, Kanpur etc56 million analog signal users40 million digital cable44 million DTH15-20% increase in subscription revenue2014TelevisionDecrease in Ad revenues due to economic slow down87 billion INR subscription revenue 152 billion INR ad- revenueReal estates, consumer durables, automobile, financial servicesTop advertisers- HUL, Cadburys, ITC, P&G, Reckitt Benkiser, Ponds India, Colgate Palmolive etc

2014TelevisionGEC channels share 48% of viewershipHindi- 30%; regional- 18%Popular shows- 24- adaptation of American series- ColorsJodha Akbar- Zee; Mahabharath, Bharat ka veer putr- MaharanapratapComedy nights with Kapil- colorsTaarak Mehta Ka Oooltah Chashma- SAB TVMale Audience- Crime Patrol- Sony; Savdhan India, Sapath Life OK; 24Big RTL Thrill- Male centric adventure channelFictions- Adventures of Hatim- life OK, Jodha Akbar, Fear File- Zee

2014TelevisionBroadcasters having multi movie deals with stars: Ajay Devgan- Exclusive satellite rights (2013-17) for 4 billion INR, Salman Khan- 2013-18 for 5 billion INRSouth indian markets has richness in content, better cultural fitThe penetration of TV & C&S is more than indian averageAdaptation of Hindi shows in regional TV Kaun Banega corepati, Big Boss, Balika Vadhu

2014TelevisionOnline viewing of TV contentPCs, Mob, Tablets is growing60 million people watched online videosViewership patterns depends on content, platform, devices, data services, payment mechanism Mob apps- Tata Sky, Dish TV, HotstarSpeed and network coverageShow specific websites, FBs, Twitter handles

2014Television-TAMCurrently TAM has 10,300+ Peoplemeters installed across India.monitors 40,000+ people across 225 cities / towns. TVM5 peoplemeter is compatible to monitor Analog as well as digitally penetrated households. This peoplemeter is also compatible with any TV set Plasma TV, Color TV, HDTV and even a Black and White TV set.2014Television-TAMWhat do the Indian audiences watch on TV?Which programmes are being accepted and rejected by the audiences?Where are these programmes watched? Is one geography/state/city/market stratas viewing preference different from the others?At what time of the day are people watching?What is the profile of TV Viewers? Can they be segmented by:AgeGenderSocio-Economic Classes2014Television- TAMWhat platforms are Audiences watching TV?TerrestrialCable & Satellite - AnalogCable & Satellite - DigitalHow do viewers respond to changes in stimulus such as:Changes in content type or story linesChanges in scheduling of the programmeChanges in the distribution or the accessibility of the channelMarket changes like On-Air, Activations, PR, Celebrity participations, etc.Influence of technology Digital STB households Vs Analog Households.Environmental changes:Power supply failurePolitical or Natural calamity diversions