Power and reach of Mass Media
Purpose: Discuss and understand the omnipresent nature of mass media, the kinds of media products, and the extent to which they affect our daily lives.
The Indian Media Business (2005 statistics)
Segment Revenue (Rs Billion)
Television Broadcasting 185
Press 95
Films 79.67
Music 15
Radio 3.6
Local Media
Outdoor 12
Events 8
Local Print 12
Rural Media 5
Others 5
---------------------------------------------------------
Total 420.27
This figure that is equal to $ 9 billion is likely to touch $ 1375 billion by end 2005!
India has the fastest growh rates for all media majors.
Cable advt included in broadcasting industry.
Source: Lodestar Media Price WaterHouse Coopers’ Global Entertainment and Media Outlook 2004-2008, Satellite and Cable TV Magazine, Businessworld and Estimates
Investors have poured in over Rs 20 billion in the Indian Media & Entertainment industry between 2004-05. Some of the biggest private equity deals and initial public offers (IPOs) in this sector in Asia have been inked in India—
Eg: Times Now Reuters/ Dainik Jagran, Hindustan Times
Why do investors want a share of the Indian media action?
The biggest strong point in favour of India is the fact that it is the world’s largest secular democracy. We are free to read/ write/ make/ watch/ listen to whatever we feel like. This gives investors a large range of options and adds a depth to the market, unlike the other Asian markets.
While China can match India where the teeming millions are concerned the first barrier is the fact that it is not an open country. There are too many restrictions on media ownership.
In China in print/ in TV most investors make do with joint ventures with state-owned enterprise. China has seen very little strategic investment and almost nothing in content. Strong control mean that except for cheap action films or historicals Chinese entertainment industry cannot try its hand at anything else.
Thus this creates a yawning gap between demand and supply in content.
For every 10 hours of Chinese film/ TV programme needed, there is only one hour available. Therefore all investment that foreign media companies have made in infrastructure – theatres, television distribution system, -- is just lying about without being monetized or optimally utilized.
Both Rupert Murdoch chairman of News Corporation and Richard Parsons of Time Warner say that India is where the action will be.
For both these companies the Indian market has started delivering results.
More than 70 per cent of NewsCorp’s Asian Revienues come from Star India.
Time Warner’s Turner Broadcasting has had a successful run in India with Cartoon Network & CNN.
Democracy without a growing economy or a huge population of young and middle aged people with more time and money to spend on various media would have menat little. When you mix all these factors together M&E has the potential to become to the Indian economy what telecom already is—a beacon of the strong economic fundamentals of India and its rising spending power as a nation full of young consumers.
A third factor is also responsible, bolstering the above two. Just as economic liberalization happened in 1991, M&E liberalization began only I 2003. This is when regulation freed publishing to seek institutional money. DTH licenses were issued, multiplexes mushroomed and radio liberalization took place. The media sector is finally free to talk to investors.
Thus every part of the industry began building on its infrastructure and realise its potential. Film companies have been professionalizing for over five years now. Publishers are expanding all over the country—take Penguin for instance. It has launched its Hindi operations and is now branching into regional publications. Broadcasters have more options like DTH and broadband to sell television signals and radio is finally free for licence fees.
Check: Figure 0.2/ 0.3/ 0.4 The Indian Media Business
India's most profitable media companies
Listed and unlisted media companies from the top 1000 companies in India, based on net sales. We are giving only the profit figures.
Listed
Name of company Net Profit Year
Zee Telefilms 313.42 cr. 2004 20.6
Balaji Telefilms 55.41 cr. 2004 -3.5
TV Today 32.08 cr. 2004 23.7
Pentamedia 14.61 cr. 2004 -3.3
Graphics
Videocon
Communications 12.36 cr. 2004 2.9
Mid-day 0.38 cr. 2004 --
Multimedia
Unlisted
Name of company Net Profit Year
Bennett,
Coleman & Co. 166.42 cr. 2003 234.65
Kasturi & Sons 31.55 cr. 2003 --
Living Media 30.71 cr. 2003 --
India
Malayala
Manorama & Co. 14.25 cr. 2003 95.21
UTV Software 9.18 cr. 2003 308.00
Communications
Mathrubhumi
Printing &
Publishing Co. 6.34 cr. 2003 3862.50
Nimbus
Communications 5.62 cr. 2003 25.56
Indian Express 3.91 cr. 2003 132.74
Hindustan Times 1.84 cr. 2003 --
Express
Publications, -14.66 cr. 2003 --
Madurai
Indusind Media& -19.46 cr. 2003 --
Communications
*Ushodaya -29.23 cr. 2003 --
Enterprises
Siticable -34.72 cr. 2003 --
Network
Note: Data on unlisted companies is released after a delay, hence the figures are two years old.
Note: Many leading media companies are private limited companies, such as Ananda Bazar Patrika, Dainik Bhaskar Group and the owners of Dainik Jagran. Hence their figures are not available.
*Note: Ushodaya Enterprises is the promoter of Eenadu, Newstime and ETV.
Source: Business Standard, BS 1000, Feb 2005
Circulation:
The circulation of newspapers in the world increased strongly last year, according to the World Association of Newspapers. At the same time, newspaper advertising revenues made significant gains.
WAN said that global newspaper sales were up 2.1 percent over 2004. Over five years, it is up 4.8 percent. Unlike previous years, growth was not only driven by gains in developing markets, but increases in sales in many mature markets.
Indian newspaper sales increased 8 percent in 2004 and 14 percent in the five-year period. In Pakistan, sales increased +3 percent last year and +13 percent over five years.
Elsewhere in Asia, sales in Singapore were up 3 percent last year, Malaysian sales were up 4 percent, Indonesia saw a 6.5 percent increase and Mongolian newspapers increased sales by 31 percent.
Australia recorded a decline of -1.21 percent in sales in 2004 and -4.83 percent over five years, while New Zealand newspaper sales were stable year-on-year and down -4.96 percent over five years.
The Norwegians and the Japanese remain the world's greatest newspaper buyers with, respectively, 651 and 644 sales per thousand population each day. Finland comes next with 522 followed by Sweden with 489.
On New Titles
The total number of daily titles was up 2 percent in the world in 2004 and up 4.6 percent since 2000, taking the total to 6,580 dailies.
Eighty-one percent of countries for which data was available reported an increase in the number of daily titles last year. Over five years, 44 percent reported an increase in the number of dailies.
The number of daily titles was up 4.1 percent in Asia; +1.3 percent in Europe; +1.1 percent in South America, +1.4 percent in Australia and Oceania; and up 10.4 percent in Africa. The number of titles declined -0.1 percent in North America.
Advertising:
Global newspaper advertising revenues saw their biggest increase in five years and were up 5.3 percent in 2004, following a 2 percent increase in 2003.
Although newspaper advertising revenues are increasing in many markets, newspapers' share of the world ad market declined from 30.5 percent in 2003 to 30.1 percent in 2004. But newspapers remain the world's second largest advertising medium, after television, and are expected to retain this position for many years.
Sixteen countries and regions saw newspaper advertising market share growth in 2004: Argentina, China, Colombia, Czech Republic, Hong Kong, Iceland, Ireland, Kuwait, Malaysia, Pakistan, Poland, Romania, Slovenia, Taiwan, United Arab Emirates and Vietnam."
The Indian Media Business (2005 statistics)
Segment Revenue (Rs Billion)
Television Broadcasting 185
Press 95
Films 79.67
Music 15
Radio 3.6
Local Media
Outdoor 12
Events 8
Local Print 12
Rural Media 5
Others 5
---------------------------------------------------------
Total 420.27
This figure that is equal to $ 9 billion is likely to touch $ 1375 billion by end 2005!
India has the fastest growh rates for all media majors.
Cable advt included in broadcasting industry.
Source: Lodestar Media Price WaterHouse Coopers’ Global Entertainment and Media Outlook 2004-2008, Satellite and Cable TV Magazine, Businessworld and Estimates
Investors have poured in over Rs 20 billion in the Indian Media & Entertainment industry between 2004-05. Some of the biggest private equity deals and initial public offers (IPOs) in this sector in Asia have been inked in India—
Eg: Times Now Reuters/ Dainik Jagran, Hindustan Times
Why do investors want a share of the Indian media action?
The biggest strong point in favour of India is the fact that it is the world’s largest secular democracy. We are free to read/ write/ make/ watch/ listen to whatever we feel like. This gives investors a large range of options and adds a depth to the market, unlike the other Asian markets.
While China can match India where the teeming millions are concerned the first barrier is the fact that it is not an open country. There are too many restrictions on media ownership.
In China in print/ in TV most investors make do with joint ventures with state-owned enterprise. China has seen very little strategic investment and almost nothing in content. Strong control mean that except for cheap action films or historicals Chinese entertainment industry cannot try its hand at anything else.
Thus this creates a yawning gap between demand and supply in content.
For every 10 hours of Chinese film/ TV programme needed, there is only one hour available. Therefore all investment that foreign media companies have made in infrastructure – theatres, television distribution system, -- is just lying about without being monetized or optimally utilized.
Both Rupert Murdoch chairman of News Corporation and Richard Parsons of Time Warner say that India is where the action will be.
For both these companies the Indian market has started delivering results.
More than 70 per cent of NewsCorp’s Asian Revienues come from Star India.
Time Warner’s Turner Broadcasting has had a successful run in India with Cartoon Network & CNN.
Democracy without a growing economy or a huge population of young and middle aged people with more time and money to spend on various media would have menat little. When you mix all these factors together M&E has the potential to become to the Indian economy what telecom already is—a beacon of the strong economic fundamentals of India and its rising spending power as a nation full of young consumers.
A third factor is also responsible, bolstering the above two. Just as economic liberalization happened in 1991, M&E liberalization began only I 2003. This is when regulation freed publishing to seek institutional money. DTH licenses were issued, multiplexes mushroomed and radio liberalization took place. The media sector is finally free to talk to investors.
Thus every part of the industry began building on its infrastructure and realise its potential. Film companies have been professionalizing for over five years now. Publishers are expanding all over the country—take Penguin for instance. It has launched its Hindi operations and is now branching into regional publications. Broadcasters have more options like DTH and broadband to sell television signals and radio is finally free for licence fees.
Check: Figure 0.2/ 0.3/ 0.4 The Indian Media Business
India's most profitable media companies
Listed and unlisted media companies from the top 1000 companies in India, based on net sales. We are giving only the profit figures.
Listed
Name of company Net Profit Year
Zee Telefilms 313.42 cr. 2004 20.6
Balaji Telefilms 55.41 cr. 2004 -3.5
TV Today 32.08 cr. 2004 23.7
Pentamedia 14.61 cr. 2004 -3.3
Graphics
Videocon
Communications 12.36 cr. 2004 2.9
Mid-day 0.38 cr. 2004 --
Multimedia
Unlisted
Name of company Net Profit Year
Bennett,
Coleman & Co. 166.42 cr. 2003 234.65
Kasturi & Sons 31.55 cr. 2003 --
Living Media 30.71 cr. 2003 --
India
Malayala
Manorama & Co. 14.25 cr. 2003 95.21
UTV Software 9.18 cr. 2003 308.00
Communications
Mathrubhumi
Printing &
Publishing Co. 6.34 cr. 2003 3862.50
Nimbus
Communications 5.62 cr. 2003 25.56
Indian Express 3.91 cr. 2003 132.74
Hindustan Times 1.84 cr. 2003 --
Express
Publications, -14.66 cr. 2003 --
Madurai
Indusind Media& -19.46 cr. 2003 --
Communications
*Ushodaya -29.23 cr. 2003 --
Enterprises
Siticable -34.72 cr. 2003 --
Network
Note: Data on unlisted companies is released after a delay, hence the figures are two years old.
Note: Many leading media companies are private limited companies, such as Ananda Bazar Patrika, Dainik Bhaskar Group and the owners of Dainik Jagran. Hence their figures are not available.
*Note: Ushodaya Enterprises is the promoter of Eenadu, Newstime and ETV.
Source: Business Standard, BS 1000, Feb 2005
Circulation:
The circulation of newspapers in the world increased strongly last year, according to the World Association of Newspapers. At the same time, newspaper advertising revenues made significant gains.
WAN said that global newspaper sales were up 2.1 percent over 2004. Over five years, it is up 4.8 percent. Unlike previous years, growth was not only driven by gains in developing markets, but increases in sales in many mature markets.
Indian newspaper sales increased 8 percent in 2004 and 14 percent in the five-year period. In Pakistan, sales increased +3 percent last year and +13 percent over five years.
Elsewhere in Asia, sales in Singapore were up 3 percent last year, Malaysian sales were up 4 percent, Indonesia saw a 6.5 percent increase and Mongolian newspapers increased sales by 31 percent.
Australia recorded a decline of -1.21 percent in sales in 2004 and -4.83 percent over five years, while New Zealand newspaper sales were stable year-on-year and down -4.96 percent over five years.
The Norwegians and the Japanese remain the world's greatest newspaper buyers with, respectively, 651 and 644 sales per thousand population each day. Finland comes next with 522 followed by Sweden with 489.
On New Titles
The total number of daily titles was up 2 percent in the world in 2004 and up 4.6 percent since 2000, taking the total to 6,580 dailies.
Eighty-one percent of countries for which data was available reported an increase in the number of daily titles last year. Over five years, 44 percent reported an increase in the number of dailies.
The number of daily titles was up 4.1 percent in Asia; +1.3 percent in Europe; +1.1 percent in South America, +1.4 percent in Australia and Oceania; and up 10.4 percent in Africa. The number of titles declined -0.1 percent in North America.
Advertising:
Global newspaper advertising revenues saw their biggest increase in five years and were up 5.3 percent in 2004, following a 2 percent increase in 2003.
Although newspaper advertising revenues are increasing in many markets, newspapers' share of the world ad market declined from 30.5 percent in 2003 to 30.1 percent in 2004. But newspapers remain the world's second largest advertising medium, after television, and are expected to retain this position for many years.
Sixteen countries and regions saw newspaper advertising market share growth in 2004: Argentina, China, Colombia, Czech Republic, Hong Kong, Iceland, Ireland, Kuwait, Malaysia, Pakistan, Poland, Romania, Slovenia, Taiwan, United Arab Emirates and Vietnam."
|
|
