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MEDIA CONCENTRATION IN

INDIA

1st interim report

Anuradha Bhattacharjee,

Assistant Professor, Media and Communications,

Mudra Institute of Communications, Ahmedabad. India

Media in India: A country report

• Till 1991, the only privately held media was

newspapers and magazines since 1780.

• Foreign media companies allowed operations

with Indian partners from 2001.

• The M&E industry stood at INR 385 billion in

2005, 584 billion in 2008 and expected to

maintain a CAGR of 12.5% (source: FICCI-KPMG Media &

Entertainment, 2009)

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PRESS IN INDIA

• Made its appearance in January 1780 with the weekly Bengal Gazette.

• Indian language journalism began with Miratool Akbar in 1822.

• In 1910 , 50 English and 272 vernacular newspapers were banned under the Indian Press Act.

• Several publications were banned during the Quit India Movement ( 1942) and Emergency (1975)

PRESS IN INDIA (conti…)

• 1953: Industry estimated to worth Rs 110 million ( source: Report of First Press Commission, 1954)

• 1980 : Industry estimated be a Rs 1.5 billion industry ( Source: Khandekar, The indianmedia business, 2005)

• 2005: 95 billion in advertising and subscription revenues. ( Source: Kandekar, ibid)

• 2008: 172.6 billion. ( Source KPMG Media Industry in India, 2009)

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M&E

Industry

(INR billion)

2005 2006 2007 2008 CAGR

%

(2006-

08)

2009

P

2010P 2011P 2012P 2013P CAGR

%

(2009-

13)

Television 163.3 182.5 211.3 240.5 13.8% 262.7 295.6 341.7 399.1 472.6 14.5%

Print 117.1 138.6 160.4 172.6 13.8% 183.9 197.9 216.0 239.3 266.0 9.0%

Film 66.9 81.7 96.4 109.3 17.7% 109.2 117.5 130.9 151.3 168.6 9.1%

Radio 4.9 6.0 7.4 8.4 19.7% 9.2 10.3 11.9 13.9 16.3 14.2%

Music 8.3 7.8 7.4 7.3 -4.4% 7.5 8.0 8.7 9.5 10.7 8.0%

Animation 10.0 12.0 14.5 17.4 20.1% 20.0 23.3 27.8 33.1 39.4 17.8%

Gaming 2.2 3.0 4.4 6.5 33.3% 9.4 13.3 17.9 22.5 27.4 33.3%

Internet

Advertising

2.0 2.0 3.9 6.2 45.2% 8.4 11.0 13.7 17.9 21.4 27.9%

Outdoor 10.0 11.7 14.0 14.0 17.3% 17.7 19.8 22.4 25.5 29.3 12.8%

Total size 385 445 520 584 15.5% 628 697 791 911 1052 12.5%

Source: Group M, KPMG Interviews, KPMG Analysis, 2009

Note: For the purpose of sizing, we have considered the following M&E sectors

Television, Film, Print, Music, Radio, Outdoor, Animation, Gaming and Internet

Advertising

PRESS IN INDIA (conti…)• There are more than 600 English dailies and 7,400 dailies in

Indian language.

– 528 newspapers had a total circulation of 7,93,25,052 ( Source: ABC 2009) .

– 160 magazines had a circulation of 1,50,40,150.

– At least 11 major media houses.

– At least 15 international magazines published in India.

• The share of print media in the total advertisement pie has fallen from 47.9% in calendar year 2007 to 47.4% in the calendar year 2008. Hindi language newspapers increased their share in total advertisement pie to 27% from 24.4% at the cost of English and some other regional language publications.

• (Source: - http://www.equitymaster.com/research-it/sector-info/media)

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PRESS IN INDIA (conti…)Recent Facts:

– 2002: 26% FDI allowed in press .

– Over Rs 10 billion of capital flowed into the sector

– In 2003 Henderson Asia acquired 19 % stake in HT Media for Rs 1 billion. In August 2005, the stake was sold for Rs. 24.95 billion.

– Deccan Chronicle Holdings raised Rs 1.49 billion from an issue that was oversubscribed 9.5 times.

– Magazine circulation has risen from 11 million in 1984 to 75 million in 2005.

– Growing literacy has made the vernacular press also buoyant.

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RADIO IN INDIA• In August 1921 The Times of India and the Post

and Telegraph department. Tried the first radio broadcast at the behest of the Governor of Bombay, Sir George Lloyd.

• 1925 the Indian Broadcasting Company was formed with Raja Saheb Dhanrajgirji and The Indian Telegraph Company as the biggest shareholders.

• By the end of 1934 there were over 16,000 licenses and 6000 subscribers and the government actually made a profit of Rs. 0.22 million on revenues of Rs 1.28 million.

• FM was first introduced by AIR in 1977, but it gained momentum only in 1993.

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Radio In India (contd…)

• In mid 1998 all private FM channels were pulled off the air abruptly.

• In March 2000 the government auctioned airtime licenses for 108 radio licenses.

• The prices : Ten licenses in Mumbai fetched Rs 975 million. The advertising revenue for the circle had been less than Rs 200 million.

• In July 2005 the government announced a new radio trade policy and opened the industry in 91 cities.

Radio In India (contd…)

• Apart from All India Radio, there were 205 FM

Radio station in operation as on financial year

ending March, 2008.

• 2009: Satellite radio started by World Space

Radio, BBC, Virgin and Sirius Satellite Radio.

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TV (Terrestrial) In India

• Terrestrial television started on Sept 15, 1959.

• The TV station was clubbed with All India

Radio, the Government’s broadcasting Service.

• Color transmission started during the Asian

Games in 1982.

• National telecasts were introduced in 1982.

• First soap opera Hum Log sponsored by

Maggie Noodles in 1984.

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TV (Terrestrial) In India (contd…)• Doordarshan the only terrestrial TV channel.

• DD has diversified into

Two All India channels-DD National and DD News.

operates 19 channels– 11 Regional languages Satellite Channels (RLSC)

– four State Networks (SN)

– an International channel

– a Sports Channel and

– two channels (DD-RS & DD-LS) for live broadcast of parliamentary proceedings.

• All Cable and Satellite TV homes receive DD compulsorily.

Doordarshan (DD) Network and its

revenues

Year No. of TV

sets (In

Millions)

Total

Population

with access

to TV (in

Millions)

Revenues

from

Advertising

(in Rs

millions)

1976 0.5 2.9 7.7

1984 3.6 21.8 314.3

1988 17.3 86.5 1,61,2.6

1992 34.9 195.0* 3,60,2.3

1996 54.0 5,72,7.3

2000 95.0 5375.10

2004 105.0 6652.7

2008 119.0 202 8180

•Source: Doordarshan and Annual reports Ministry of I&B

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Growth of DD: reach and revenues

Year No. of TV sets

(In Millions)

Population

with access to

TV (in Millions)

Revenues from

Advertising (in

Rs millions)

1976 0.5 2.9 7.7

1984 3.6 21.8 314.3

1988 17.3 86.5 1,61,2.6

1992 34.9 195.0* 3,60,2.3

1996 54.0 270.0 5,72,7.3

2000 5375.10

2004 6652.7

2008 134 8180

Source: Doordarshan and Annual reports Ministry of I&B

TV (Cable & Satellite) IN INDIA• Cable Satellite television crept into India in 1984.

• Private cable TV emerged during the first Gulf War in 1991.

• CNN became first American satellite channel in India by 1990.

• 1990 Hong Kong based Hutchison Whampoa Group launched the Satellite Television Asia Region (STAR).

• In 1992 India had 1.2 million cable homes, by 1994 the figure was 11.8 million.

• In 1993 Rupert Murdoch’s News Corporation bought 63.6% stake in STAR.

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TV (Cable & Satellite) In India (contd…)

• In 1994 Asia Today was formed on a 50:50

joint venture basis between Zee and Star.

• NDTV launched its first 24 hour news channel

in 2003.

• BCCL launched its GEC Zoom in 2004.

• May 2004 CNBC TV 18 and Mint, another

business newspaper.

• By December 16, 2005 CNN tied up with IBN

and launched two 24X7 news channels.

TV (Cable & Satellite) In India (contd…)

• IBN 7, a Hindi news channel and the Hindi newspaper Hindustan, a Hindi newspaper of HT Media started in 2006.

• 2008 Viacom Inc. entered in to 50:50 collaboration with TV- 18 launching GEC named Colors.

• UTVi, an English business channel with Business Standard, an English newspaper was launched in 2008.

• Turner bought NDTV Imagine in 2009 for ?? Amount ??.

• 2010: Cable TV can access Gmail and Face book without internet by 2010.

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TELECOMMUNICATION (Wireline and

Wireless) IN INDIA

• 1986: DoT created another body MTNL for Delhi and Mumbai.

• 1992 : DoT invited bids for mobile services in the four metro cities.

• 1998: Only Bharti Tele-ventures made a small profit of Rs 25 million in 1997-98.

• But eight mobile services operators and all the landline operators were in default of their license fees.

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TELECOMMUNICATION (Wireless) In

India (contd…)

• 1998: Telecom Regulatory Authority of India

set up to oversees all forms of telephony

including broadband and ISP, DTH, satellite TV,

IPTV and convergence to provide “triple play”

services (voice, video and data).

• 1999: New Telecom Policy introduced.

• In 2005 the number of mobile phones

overtook landlines.

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Internet Service Provider

• 1995: Internet came to India under the aegis of VSNL on leased lines. Tariffs were highest in the world at approx $2 an hour.

• 2002: Internet telephony was allowed by DoT

• 2005: 7.5 million subscribers and over 38.5 million users.

• 2008: 12.85 million subscribers and 46 million active internet users.

• Penetration of Internet is as yet merely 4.5 % in India.

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High Points of media in India

• There is no relation between the circulation and

the revenue pattern. According to the RNI,

theratio of circulation to advertising revenue

was 60:40 in 1980

• 2005: only 15-20 per cent of the revenue of

English newspapers was recovered from

circulation of revenue. (Source: Vanita Kohli

Khandekar)

•

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High Points of media in India… contd

• Why ?

• In India, newspapers are delivered to the doorstep by a distribution agent. Usually it takes a minimum of two days to stop delivery of a newspaper. ‘Start’ instructions can be executed almost immediately.

• Circulation contributes 5- 15% of revenues for English language newspapers against 35- 45% for vernacular newspapers.

• Readership per copy is approximately 2-4 for English newspapers, while 7 to 9 times for vernacular newspapers. ( Source: http://www.equitymaster.com/detail.asp?date=9/21/2007&story=3)

Cable, DTH and MSO’s

• Till 1995 cable operators a cottage industry.

• 1996 broadcaster started charging operators for showing their channel

– Investment on decoders

– Emergence of bouquet of channels

• Operators routinely under declare their subscriber base. If we take an average of Rs.350per household/subscriber per month, for India’s 66.54 million cable and satellite households over 12 months the total is Rs. 279 billion.

• MSO made its appearance backed by serious corporation.

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Cable, DTH and MSO’s (conti…)

• Broadcasters like Zee set up Siti Cable,

Hathway Cable from Rajan Raheja Groups and

InCable from Hinduja appeared in the market.

• 60,000 cable operators in Down to 35,000

when by 1996.

• According to an estimate only 15 to 20 per

cent of these end up with MSO’s.

Times Warner

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Viacom

News Corporation

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Walt Disney

THANK YOU

anuradha@micamail.in