Indian Media and Entertainment Industry break-up: 31% of total industry size, radio just 0.

8%; upto 26% FDI permitted in newspapers and periodicals in news and current affairs subject to few conditions Media sector enjoys direct interaction with people and hence, it has great power to influence peoples mind. Often the industry remains the driving force in building public opinion and determining its trends. Like the other countries of the world, the media industry also plays a very crucial role in India. The media and entertainment industry has come a long way to grow into a modern sector in the country. The large Indian population has work as a stimulant for the growth of the Indian media industry. The slacking grip of the government and the introduction of satellite channels have helped towards promoting the free media environment in the country. Indian print media industry is among the biggest industries on a global scale. It has a glorious history of more than 230 years. The first ever Indian newspaper is Bengal Gazette. Digdarshan was the first hindi newspaper published in 1818. Strengths: Detailed analysis, Threats: Easy availability of news

Experts are predicting a bright future for the Indian print media industry thanks to it its potential for strong growth. Of late there has been a considerable amount of increase in advertising activities in newspapers, which has substantially increased their revenue. In recent months most Indian newspapers have increased their advertisement rates and the volume of advertisements has gone up as well. However, other important factors such as increasing rates of literacy and readership in semi-urban and rural circles have also played their part in the good state that the industry finds itself it. Experts are also predicting that these areas will make bigger contributions to the revenues earned by newspapers and magazines because of their increased spending capabilities and commercial operations. It is being assumed that the vernacular language newspapers will be the biggest earners in these circles. Newspapers have also managed to keep their prices same for a considerable period of time something that has contributed to increased sales. This is also going to help the

print Across the globe, scope of Mass Media is changing rapidly. Ways of communication, sharing and sending information are witnessing rapid changes due to rapid strides in technological innovation. A convergence is being seen in media, telecom and internet. Player operating in the entire three segments is in better position to cash the opportunity from the rapidly growing mass media market. Strong growth in the mobile music industry is the best example of the convergence among Indian telecom, media and internet. Print media companies are diversifying into allied business in order to de-risk the business. Due economic slowdown, a deceleration cannot be ruled out. Cyclical nature of Industry: Company have major portion of their advertisement budget allocated for this period. Due to depreciation in the rupee the rising newsprint cost for print media would come down. This will increase their profit margin. Due to recent meltdown in the market, most of the media company is trading below their book value.

More than 22o Million newspaper readers. 10% readers for English, rest for vernaculars Key factors to be watched: Rising Newsprint cost Advertising revenue Circulation revenue

Major television conglomerates like Star and Zee have expanded to launch several regional channels

Strength of Dainik Bhaskar (Estd. In 1958): Customized content, strong editorial, appropriate mix of national, regional and local news, supplements targeting specialized groups like youths, students or women, Leadership in markets 7 newspapers, 13 states, 4 languages, 64 editions, 128 sub-editions, readership: 19.2 million Divya Bhaskar: No. 1 from Day 1 Dainik Divya Marathi: Launched in Aurangabad in May 2011. MyFM: 17 stations, 7 states, EBIDTA margin of 18% in 2010-11

Market Cap: 3600+ crores, FY 11 Revenues: 12652 crores (almost double from 6744 crores in FY07) IPO in 2009, oversubscribed 39.54 times, company was listed at the upper end of the price band of Rs. 185-212 per share Warwurg Pincus: Private Equity firm that left DB Corp and invested in Diligent Power Private Limited. Six months moving average:216.83, in April mast year, shares traded at around 255, went down to below 180 in late December 2011.

Brand recognition and brand loyalty Relationship with vendors Distribution network Cover price sensitive customers, cover price largely driven by competition. Depends location and point of sale. Purchasing through subscription is often cheaper.

Advertisements: Three broad categories: Display advertisements, Government and classifieds What advertisers look for: good reach among target segment is the major driving force

in selection of a particular newspaper, other parameters being impact created and budget allocated Another source of revenue: Creating events that also serve the purpose of differentiating them, creating noise to capture mind-space of advertisers and consumers.

Department stores and supermarkets could be relied upon in the past to buy full-page advertisements, but due to industry consolidation and poor performance are much likely to do so now.

Advertorial has emerged as a new revenue source. It is most commonly recognized as opposite-editorial. Tone is usually closer to a press release rather than of an objective news story.

Newspaper distribution system is an example of highly perishable good production and distribution system. Perishable to both manufacturers and customers. Cannot print newspaper in advance coz news have to be timely. Also late delivery is not entertained. Hence newspaper sales involve distributing highly perishable products under severe time constraints. Hence they have very short lead times. Responsiveness and efficiency: responsiveness includes supply chains ability to respond to wide range of challenges demanded; efficiency is optimizing cost of making n delivering newspaper in optimal lead time.

Dainik Bhaskar: Newspaper of the people with class, high score in terms of good looks, language and better advertising quality

Over the past one year market capitalization