Beruflich Dokumente
Kultur Dokumente
Report on
Media Services
B. Low ad spends...........................................................................................8
DTH Service.................................................................................................28
DOMESTIC PLAYERS.....................................................................................31
ETV Network ................................................................................................................31
Sun TV Network ...........................................................................................................32
Zee Entertainment Enterprises Ltd...............................................................................32
Maa TV .........................................................................................................................32
B4U Television Network (India) Pvt Ltd.........................................................................32
BBC World India............................................................................................................33
Cartoon Network India..................................................................................................33
CNBC Asia.....................................................................................................................33
Doordarshan-Indian National Television Network.........................................................33
NDTV............................................................................................................................34
SonyEntertainmentTelevision.......................................................................................34
MARKET TRENDS IN INDIA........................................................35
Looking Beyond...........................................................................................35
SWOT ANALYSIS OF THE INDUSTRY.........................................36
TV FROM SERVICE PERSPECTIVE...........................................38
Television Advertising..................................................................................39
History .......................................................................................................41
Background.................................................................................................46
Marketing Objectives...................................................................................46
Competitors................................................................................................46
4. Content regulation...................................................................................51
B. LOW AD SPENDS
Today, India has probably one of the most liberal investment regimes
amongst the emerging economies with a conducive foreign direct
investment (FDI) environment. The E&M industry has significantly
benefited from this liberal regime and most segments of the E&M industry
today allow foreign investment. Recently FDI was permitted in the two
important sectors – print media and radio. Films, television and other
segments are already open to foreign investment. In the print media
segment, 100 percent FDI is now allowed for non-news publications and
26 percent FDI is allowed for news publications. Printing of facsimile
editions of foreign journals are now also allowed in India. This policy is
helping foreign journals save on the cost of distribution while servicing the
Indian market audiences more effectively. The FM radio sector too was
opened for foreign investment recently with 20 percent FDI being allowed.
The FM radio sector itself has expanded by opening 338 licenses for
private investment, which currently is underway. As a result, the radio
sector is expanding rapidly with forecasted growth rates of 32 percent per
annum.
Summary of guidelines for FDI in the Indian E&M industry is given below:
Source: Ministry of Broadcasting & Media
CURRENT STATUS OF THE INDUSTRY AND ITS GROWTH POTENTIAL
The Indian economy continues to perform strongly and one of the key
sectors that benefits from this fast economic growth is the E&M industry.
This is because the E&M industry is a cyclical industry that grows faster
when the economy is expanding. It also grows faster than the nominal
GDP during all phases of economic activity due to its income elasticity
wherein when incomes rise, more resources get spent on leisure and
entertainment and less on necessities. Further, consumption spending
itself is increasing due to rising disposable incomes on account of
sustained growth in income levels, and this also builds the case for a
strong bullish growth in the sector.
The size of E&M in India is currently estimated at INR 353 billion and is
expected to grow at a compounded annual growth rate of 19 percent over
the next five years.
The television industry continues to dominate the E&M industry by
garnering a share of over 42 percent, which is expected to increase by a
further 9 percent to reach about 51 percent. The share of the film
industry, which currently stands at 19 percent, is not expected to change
materially over the next five years. Print media, which stands at over 31
percent, is projected to lose some of its share in favour of the emerging
segments.
KEY GROWTH DRIVERS
TELEVISION
Subscription revenues are projected to be the key growth driver for
the Indian television industry. Subscription revenues will increase both
from the number of pay TV homes as well as increased subscription rates.
The buoyancy of the Indian economy will drive the homes, both in rural
and urban (second TV set homes) areas to buy televisions and
subscribe for the pay services. New distribution platforms like DTH
and IPTV will only increase the subscriber base and push up the
subscription revenues.
PRINT MEDIA
A booming Indian economy, growing need for content and
government initiatives that have opened up the sector to foreign
investment are driving growth in the print media. With the literate
population on the rise, more people in rural and urban areas are reading
newspapers and magazines today. Also, there is more interest in India
amongst the global investor community. This leads to demand for more
Indian content from India. Foreign media too is evincing interest in
investing in Indian publications. And the internet today offers a new
avenue to generate more advertising revenues.
RADIO
In 2005, the government opened up the sector to foreign
investment – and this is the key factor that will drive growth in this
sector. As many as 338 licences are being given out by the Indian
government for FM radio channels in 91 big and small towns and
cities. This deluge of radio stations will result in rising need for
content and professionals. New concepts like satellite, internet and
community radio have also begun to hit the market. Increasingly,
radio is making a comeback in the lifestyles of Indians.
PRINT MEDIA INDUSTRY .
The expected CAGR of 12 per cent up to 2011 is a result of the
increasing rate of literacy and thus the increase in the number of
people reading newspapers and magazines. Also, the demand for the
latest events in the country and the world is driving the newspaper
industry growth.
The bright future and the immense scope of the Indian print media
have also aroused the interest of foreign investors and recently the
government has opened up the sector to foreign investment. Foreign
media has also shown interest in investing in Indian publications. The
revenues for India's newspaper market are generated from advertising
and circulation. India's growth rate in this segment is poised to be higher
than the average rate of growth in the Asia-Pacific region over the
next four years. . A few leaders in India in this segment are: Times of
India Group, Dainik Jagran, Lok satta, The Hindustan Times and The
Hindu.
PRINT AND NEWSPAPERS
India has four news agencies namely, the Press Trust of India (PTI),
United News of India (UNI), Samachar Bharti and Hindustan Smachar.
Newspapers and magazines in India are independent and largely
privately owned. About 5,000 newspapers, 150 of them major
publications, are published daily in nearly 100 languages. Over 40,000
periodicals are also published in India. The periodicals specialize in
various subjects but the majority of them deal with subjects of
general interest.
INDIAN EXPRESS
The Indian Express is another leading newspaper of the country.
This group's publications include the Indian Express, the Financial
Express, Loksatta, Screen and Express Computer.
INDIA TODAY
India Today is part of Living Media India Ltd, one of India's leading
names in news and publishing which includes the television
production group of Aaj Tak and Headlines Today, along with
Business Today, Computers Today, India Today Hindi, India Today
Plus, Teens Today and Music Today. It contains everything from
hardcore political and business news and analysis to the movies,
music, art, books, computers, lifestyle and business resources.
• Origin: Where did the story come from, staff, wire service or reader?
NEWSPAPER ADVERTISING
Every advertising medium has characteristics that give it natural
advantages and limitations. As you look through your newspaper(s), you'll
notice some businesses that advertise regularly. Observe who they are
and how they advertise their products and services. More than likely, their
advertising investment is working if it's selling!
SOME ADVANTAGES IN NEWSPAPER ADVERTISING
Almost every home receives a newspaper, either by newsstand or home
delivery. Reading the newspaper is a habit for most families. And, there is
something for everybody: sports, comics, crosswords, news, classifieds,
etc. You can reach certain types of people by placing your ad in different
sections of the paper. People expect advertising in the newspaper. In fact,
many people buy the paper just to read the ads from the supermarket,
movies or department stores.
• Newspapers usually are read once and stay in the house for just a day.
• The print quality of newspapers isn't always the best, especially for
photographs. So use simple artwork and line drawings for best results.
• The page size of a newspaper is fairly large and small ads can look
minuscule.
• Your ad has to compete with other ads for the reader's attention.
• You're not assured that every person who gets the newspaper will read
your ad. They may not read the section you advertised in, or they may
simply have skipped the page because there wasn't any interesting
news on it.
• Tabloids:
o Mumbai Mirror
o Kolkata Mirror
o Bangalore Mirror
o Ahmedabad Mirror
o e Mirror
When the world's largest democracy picks a leader, it's only natural for
interest levels to peak. And when the candidates happen to be people
whose leadership skills are untested, yet truly represent the interests of
the man-on-the-street , public empathy takes a whole new meaning. It's
something that was richly on display all through the 'Lead India' campaign
, conceived by The Times of India with the objective of identifying India's
future leader. As the contest got keener , a fair share of public discussion
centered at who among the contenders would ultimately emerge as the
one best suited to lead the nation. The choice, ultimately, was whittled
down to RK Misra from Bangalore and Devang Nanavati from Ahmedabad
- with the former eventually being declared the winner.
The point of the campaign, however, was not purely about identifying a
winner . It was more about providing every right-thinking Indian a chance
to step out of the comfort zone and take on the task of stewarding the
nation. It was a clarion call to be the change that we expect in Indian
society; an opportunity for citizens to shrug off their indifference and put a
shoulder to the wheel.
That Misra won the mandate and now has a chance to pursue a political
career - with a ticket from either the Congress or the BJP, or as an
independent candidate, all aided by intensive grooming at the Kennedy
School or at the Times School of Political Leadership - is secondary. What's
important is the number of Indians who raised their hands in response to
the Lead India initiative - over 37,000 entries were received from people
willing to change India
TEACH INDIA CAMPAIGN
Teach for India believes that it takes the most talented people from all the
sectors working together to bring about a revolution in education. In
pursuit of this, teach for India enrolls outstanding college graduates and
young professionals for a paid fellowship. These fellows commit two
years at various low income schools in the suburbs of Mumbai, Pune and
Delhi .These young people become lifelong leaders in the pursuit of
educational excellence and equity.
Teach for India fellows will re-define what teaching is.TFI adopts the
method of "TEACHING AS LEADERSHIP" which not only reforms the
students but also develops the leadership capabilities of the fellows for
long term achievements. The fellows will adopt innovative teaching
techniques, transforming learning into a fun-filled activity for their
students. These fellows will manage their classroom as any successful
leader manages their organization and encourage their students to learn
through experiential and innovative methods.
TELEVISION INDUSTRY IN INDIA
DTH SERVICE
Direct-To-Home (DTH) Service refers to distribution of multi-channel TV
programmers in Ku Band by using a satellite system for providing TV
signals direct to subscribers' premises.
So
urce: PwC Analysis
** In service sector the portion of media broadcasting was slowly
increased in this year 2008 due to the floods and elections the media
broadcasting industry was increased.
DOMESTIC PLAYERS
ETV NETWORK
It is one of the largest networks of satellite television
channels in India and is owned by the media baron Ramoji Rao.
Based at Hyderabad, this network runs a group of 12 regional
language news and entertainment channels.
SUN TV NETWORK
It is the No 1 media company in South Asia and Asia Pacific Region )
and the largest TV network of South India, based in Chennai, Tamil
Nadu. Established in 1993, it offers a plethora of television channels
in 4 languages covering the whole of southern India. It was the first
fully privately owned Tamil channel in India when it emerged in
1993. Its serials and soaps have generated the maximum TRP for
viewership all over India, making it the most popular network of
channels in India.”More than 80 per cent of the state’s population
decides on how to vote, where to shop, what to buy based on the
news, information and entertainment coming from the Sun Group.” -
Business-Standard.
MAA TV
It is a Telugu language TV Channel based in Hyderabad, India. It is
one of the leading Telugu language TV channels in Andhra Pradesh,
India. In a very short time span, it has established amongst the
Telugu viewer across strata and gender, the globe over, as a
channel that is different - in terms of its attitude, freshness and
novelty.
CNBC ASIA.
CNBC Asia goes beyond delivering regional news. Efforts have been
made to remain relevant to the local audience concerns and issues
of the day. In India in particular, CNBC Asia's local partnership with
Television Eighteen India Ltd (TV18) has produced a top-notch
business channel dedicated to the delivery of relevant news to
CNBC Asia's viewers in India.
SONYENTERTAINMENTTELEVISION .
Sony Entertainment Television is dedicated to provide the best
in Hindi family entertainment to the largest percentage of the Indian
population-the young adult.
MARKET TRENDS IN INDIA
The key trends prevailing in Indian market are:
LOOKING BEYOND
Although there are several issues regarding content and quality of service
offered by the cable service providers, most of the TV households in India
still prefer cable service to DTH. In such a scenario, DTH operators have
no option but to offer the service at the lowest cost possible to pull
customers towards them. Currently, the market is dynamic with a lot of
introductory bonanzas and free offers from companies.
SWOT ANALYSIS OF THE INDUSTRY
STRENGTHS
• Latest technology is used by the Industry, along with that; it offers
wide variety of solutions including some very creative ones.
• There is strong expertise of broadcasters in core areas and also we
see heavy competition which is a sign of prosperity for the Industry.
• The industry is very sensitive to market trends/customers’ needs
and develops solutions according to the fast changing requirements.
• Competitive pricing helps the end customer as do customized
solutions.
• Box Office revenues are expected to see consistent growth in 2008 -
2009.
• Home movie downloads are becoming more accessible via the
internet and those in the industry have successfully met this.
• The industry expects to grow advertising revenues at a rate of 7.9%
in 2008. Also, there is Strong network between public and private
sector.
OPPORTUNITIES
• Downloads remain a small part of revenue growth, but there is rapid
growing potential for revenue from downloads and transmissions to
mobile phones, video on demand, video iPod, and internet
downloads.
• Now some broad casting companies are providing box offices also.
• Conglomerates have the resources to seek out this changing market
while balancing its initiatives on the television broadcasting level.
• Change in technology and in consumer wants and needs brings
about new opportunities for growth and for different players to
catch a larger share of the industry.
• Those who are able to create strategic partnerships and find
alternative ways of doing business will thrive.
• Increasing no. of channels.
• Well awareness through broadcasting.
WEAKNESS
• Domination of 4-5 major players is a negative sign thus creating
somewhat monopolized industry.
• The U.S. automobile industry has a major effect on the Broadcasting
& Entertainment industry as it is one of the largest advertisers.
Ongoing weakness of U.S. automakers will have an impact on
advertising spending.
• Environmental issues.
• Full depending on power supply.
• Remote area can not access.
THREATS
• With an unstable outlook, this industry will suffer if we experience
economic decline.
• The influx of DVR’s (Digital Video Recorders) into the homes of
consumers has a negative impact on advertising revenues.
• Though broadcasters understand the evolution of advertising from
television to the Internet, there is still an uncertainty as to whether
or not the consumer traffic will remain or drop off to other
alternatives.
• With primetime viewing and movies turning digital, the threat of
piracy and illegal downloads is more prevalent, which will hinder the
industries growth.
TV FROM SERVICE PERSPECTIVE.
Television from the service point of mainly serves 2 purpose, first it
provides numbers of benefit to the viewer( see below) , second it act as
one of the most useful medium for the purpose of advertising. It also
keeps you informed on what is happening in the world. It educates you
with amazing subjects like travel, people and animals of other parts of the
world, on History, TLC, SCI, Discovery, etc
Any TV channel must offer the following benefit to the viewer such as,
3. Water Cooler effect - TV can often give office mates with little in
common, something to talk about. This is especially so with series that
lend themselves to discussion
4. Laughter - Laughing is good for us. As the saying goes, laughter is the
best medicine. It has been found to increase circulation, lower blood
pressure and more. Watching a good comedy on TV can be a great way to
find something to laugh about.
5. How-To - With many channel focusing on this issue now a days, you
can actually learn how to do almost anything to or for your home.
6. Excitement – Contest and reality shows give you the fun and
excitement of having favorites and rooting for a winner. The benefits of
sports for non-sports watchers.
10. Gives families something to bond over – which is one of the prime
benefit of the TV.
TELEVISION ADVERTISING
Television is often called "king" of the advertising media, since a majority
of people spend more hours watching TV per day than any other medium.
It combines the use of sight, color, sound and motion...and it works. TV
has proven its persuasive power in influencing human behavior time and
time again. But it's also the "king" of advertising costs.
While the newspaper may cover the city's general metropolitan area, TV
may cover a good portion of the state where you live. If such a coverage
blankets most of your sales territory, TV advertising may be the best
advertising alternative for your business.
According to the STAR website, their service has more than 300 million
viewers in 53 countries and is watched by approximately 120 million
viewers every day.
HISTORY
The company was launched in 1 August 1990 as part of Hutchison
Whampoa group. It started broadcasting five television channels in 1
January 1991 from Asia Sat 1 Satellite. Launch of The STAR TV Network
pioneered satellite television in Asia and in the process catalyzed
explosive growth in the media industry across the entire region.
BACKGROUND
• Incorporated in 2004
• Joint Venture between the TATA Group and STAR
• The SKY brand, owned by the UKbased British Sky Broadcasting Group
• Tata Sky Ltd is the First Indian DTH provider to be awarded the ISO
27001:2005 accreditation
MARKETING OBJECTIVES
• Volumes & Profits : Company wants to double its customer base by
2012.
• Image: Projecting itself as an “Edutainment” service rather than just an
entertainment service provider.
• Average Revenue Per User (ARPU) : The company intends to gain value
market share and increase its ARPU
• Regional and remote area: Capture new areas and increase the reach
The Product
• Packages are provided to suit the customer needs
• Services provided by TATA Sky e.g. active series
COMPETITORS
• Dish TV: Market leader amongst private players
• Sun Direct: Price warrior, Strong Brand equity in south.
• Airtel: Presence of a strong telcom infrastructure
• Big TV: Strong brand image and superior telcom infrastructure
• Videocon DTH: riding on its strength in television manufacturing and
distribution. Company wants to integrate set top box with television.
• Doordarshan: National presence (90% reach), free service.
• Local cable operators: In market for close to 20 years and have high
market penetration
OPPORTUNITIES
• The share of the wallet of Indians have been increasingly moving
towards education and entertainment as a consolidated function which
TATA SKY can very aptly fulfil.
• Higher disposable income with the Indian population.
• Rural market has huge potential.
• Growing demand for customised television viewership.
• HDTV services provide an opportunity with the Commonwealth Games
and World Cup around the corner.
THREATS
• Online live streaming – Offers superior services and at much lower costs
(effectively almost free).
• Established competitors like Dish TV who are majority market share
holders.
• Traditional cable TV has improved services which eat into the consumer
share of DTH.
• High dependence on individual channels foe fixation of price reduces
their bargaining power and making TATA SKY prone to frequent price
changes due to arm twisting tactics.
The present scene
PORTER’S FIVE FORCES ANALYSIS
THREATS OF NEW ENTRANTS
• Proper distribution network: Distribution network takes time to
mature so an immediate threat from a new entrant is low.
• License and regulation issues: TRAI regulates the players of the
DTH industry and hence entry into the sector is highly
monitored. Besides the pricing Consumer Premise Equipment
(CPE) like the settop boxes and the positioning of transponders
is patented. Hence this too makes the threat from new entrants
low.
• Established players: The existence of established players in the
market like TATA SKY, Airtel Digital TV, etc creates high entry
barriers for new entrants.
COMPETITIVE REVELRY
• High: because there are number of players in the market and
they are willing to go an extra mile to capture the new client
SERVICE COMPARISON OF SATELLITE CHANNEL
Previously when DTH services were introduced in India, things were much
simpler there were just two DTH service providers namely Dish TV
and Tata Sky so choosing between the one or the other was easier for the
DTH customers. Today that is not the case there are number of DTH
service providers in the Indian DTH market such as Sun DTH, Big
TV, Airtel DTH, besides Dish TV and TataSky. Added to this a couple of
new service providers will be jumping into this bandwagon. Videocon DTH
will be launched soon and BSNL is also planning to launch its own DTH
services.
When you compare all the DTH service providers you will see that there
are lot of variations in the cost, features and quality of customer service.
You will also find lot of variations in the monthly channel packages offered
by each DTH service provider.
The next important factor is the quality of the signals. For most of us who
have been used to cable TV, DTH services in general will come as a great
treat for the eyes. You will be able to see a great difference in the quality
of the signals you receive. Among the DTH service providers Sun DTH and
Big TV uses MPEG 4 technology. But signal quality, picture quality and
audio quality is better in Big TV when compared to Sun
TV. Tata Sky, Dish and Airtel too excel in terms of the picture and audio
quality. In terms of user interface, Sun DTH offers a very basic user
interface that matches to their price.
INDUSTRY
A lot more investment can be drawn into the entertainment and media
industry if certain sectoral policy barriers can be addressed. Some of the
issues that need to be addressed which commonly impacts all segments
and need to be addressed urgently include:
1. PIRACY
The problem of piracy assumes a different proportion in a country such as
India with an area of 3.3 million sq. km. and a population of over 1 billion
speaking 22 different languages. It impacts all segments of the industry
especially films, music and television. Most of the credible efforts today to
combat piracy have been initiated by industry bodies themselves. On part
of the government, lack of empowered officers for enforcement of anti-
piracy laws remains the key issue that is encouraging the menace of
piracy. This, coupled with the lengthy legal and arbitration process, is
being viewed as a deterrent to the crusade against pirates. The current
Copyrights Act too is dated in terms of technology improvements, and
above all, it does not address the needs of the electronic media which has
maximum instances of piracy today. The draft of the Optical Disc Law to
address the need for regulating piracy at the manufacturing stage is still
lying with the ministry for approval.
The sector currently lacks a consistent and uniform media policy for
foreign investment. Some of the inconsistencies include different caps in
foreign direct investment in various segments. This is enumerated below:
• Television distribution: DTH 49% (strategic FDI only 20%); cable 49%
(ownership can only be with India citizens). • Content (news): Television
and print - 26%; radio - nil • Content (non-news): Television and print -
100%; radio 20% (only portfolio)
Most sectors of the Indian E&M industry have traditionally operated under
various agencies of the Indian government, which were later opened to
the private players in various stages. FM radio is one such example where
the incumbent All India Radio (AIR) was the sole player in the medium of
both AM and FM radio broadcasting. Limited frequencies of FM
broadcasting have been opened to the private players but with a licence
fee, which is not currently applicable to the incumbent AIR. Similarly, in
television segment, all terrestrial broadcasting rights continue to be with
the incumbent Doordarshan.
4. CONTENT REGULATION
As per a notification issued by the TRAI, broadcast media pricing has been
frozen for over a year now. Though TRAI did allow a 7 percent inflationary
adjustment late in 2004, the inflationary adjustment of 4 percent in 2005
is under a legal dispute. Such price controls limit a broadcaster’s ability to
shape their business model, based on market demand and the
competitive environment. Since the market has so far been efficiently
regulated through competition, price regulation thus becomes a deterrent.
Some industry members are of the view that converting the current cap
on foreign institutional investment (FII) investment to foreign direct
investment (FDI) is not a very encouraging move by the government. FII is
primarily considered “hot money” and is invested by foreign funds to
make quick returns unlike FDI, which is longer term in nature and is
actually invested into the business. FDI in several cases is also
accompanied with expertise (such as technology) being brought into the
country that helps in the growth and development of the industry. An FII
invests like a financial investor with the prime motive of quick
appreciation of its invested capital rather than taking a longer-term view
of the business, whereas an FDI investor is more in the nature of a
strategic investor and is in the business for the long haul. The new policy
does not recognise the need for creating an environment that encourages
strategic investors in making investments in the sector.
First, we have to know the strong points and scope for growth. There is
significant scope for growth for print media in India. According to the
findings of press trust of India, 359 million people who can read and
understand any language do not read any publication. It is not just
affordability that is a constraint, since 20 million of these literate non-
readers belong to the upscale segments.
Print media provide the kind of optical and tactile pleasure that no other
media can match. It is functionally convenient too. Print media has to
build on its strength and discover new areas of influence and revenue
generation. It has to learn the new language of local and global. It has to
use alternative technological media options as an ally, and not as a
frightening enemy. From passive disseminators, newspapers/periodicals
need to become active engagers.
There are some basic matters like the writing must be good; lay out
attractive; printing high quality. Today when people have more choices a
sloppy product has no chance of independent survival.
More important than that is the way content is represented in print media,
especially in newspapers and newsmagazines. . Apart from news and
politics, sports are the topic of interest among readers. This is followed by
films & television serials.
Print media can provide the meaning and context – in short understanding
of any event or issue better than all other media. That is the strength of
print media, which can be utilized. ‘What’ is increasingly been told and
shown by radio and television. Print media should attempt to tell ‘why’
and ‘what next’. It should provide a platform for informed level headed
debate.
Print media has to be utility oriented. There should be what is called
‘value for money’. For that there can be a synergy with the online edition
of the printed edition.
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Television Broadcasting Industry Analysis by PwC