COMPARITIVE ANALYSIS OF NATIONAL

AND REGIONAL CHANNELS

SUMMER PROJECT REPORT FOR

THE PARTIAL FULFILLMENT OF THE AWARD OF POST
GRADUATE DIPLOMA IN BUSINESS MANAGEMENT
(PGDBM 2008-10)
ETV NETWORKS PVT. LTD.
UNDER THE GUIDANCE OF
PROF. P. SHIVKUMAR
(FACULTY)

SUBMITTED BY
GAURAV KR. VARSHNEY
ROLL NO.18-A

ENTERPRENEURSHIP & BUSINESS PROCESSES INTERNATIONAL (EMPI)

CSKM EDUCATIONAL COMPLEX, SATBARI, CHATTARPUR,
NEW DELHI - 110074

COMPARITIVE ANALYSIS OF NATIONAL

AND REGIONAL CHANNELS

Under the Guidance of:

Ms. Shruti kashiv

Submitted by:
Gaurav Kr. Varshney
Roll No. 18-A

PGDM (BM)
EMPI BUSINESS SCHOOL
NEW DELHI
2008 - 2010

Certificate
This is to certify that Mr. Gaurav Kr. Varshney has worked under my
supervision on the topic titled COMPARITIVE ANALYSIS OF
NATIONAL AND REGIONAL CHANNELS a project, which was
undertaken at ETV NETWORKS Pvt Ltd. for a period of 8 weeks.
During the period I found his work satisfactory.

(Name and signature of Academic faculty)

(Sign and Seal of Dean)

ACKNOWLEDGEMENT

Firstly, I would like to thank Entrepreneurship & Management Processes

International Business School, New Delhi for giving me a chance to work on
Summer Project, next I am deeply obliged to The Etv networks pvt Ltd. for providing
me an opportunity to do my summer project for it.

My thanks are also due to Mr. Nirmal Bose- (Marketing man ager), Shruti
kashiv Deputy Marketing Manager, Etv Networks Pvt ltd. (Jhandewalan Branch),
who acted as an organizational guide and helped me all throughout my project and
without whom I could not have been able to complete my project.

I also wish to thank Mr. Pankaj Saxen a,( Team leader commercial sales team)
Mr.Ajay Kumba, (Sales executive) for their help during the project.

I would be failing in my duty if I do not thank the faculties of Entrepreneurship &

Management Processes International Business School, New Delhi, who helped me at
different stages of the project.
Last but not least I express my sincere thanks to all my batch mates at
Entrepreneurship & Management Processes International Business School, New
Delhi, for extending their help and support all throughout the project.

EXCLUSIVE SYNOPSIS

This is a report of the summer project undergone with Etv Networks Pvt
Ltd. an Indian television channel & one of the most respected regional
channels in the country. It is one of the giant in the upstream segment of
the countrys Regional channels along with Sun TV networks, which
mainly dominate the upstream sector exploration.
This project is undertaken as a step towards the partial fulfillment of the
PGDBM course from EMPI Business School. The project is undertaken
with a view to have insight of the entire television industry with a deeper
approach towards understanding the national and regional channels.

CONTENTS

Introduction
- Background
- History of the media and entertainment industry
- Definition and difference

Industry overview
- Current status
- Succeeding in turbulent times
- Size and growth of the industry
- Outcome: new market expansions.

Comparison of national and regional channels on the basis of Advertising

Comparison of national and regional channels on the basis of channel

shares.

SWOT analysis of the national and regional channels

Future prospects of national and regional channels.

Bibliography

BACKGROUND
The significant growth in the entertainment industry in the last decade of the twentieth
century was largely triggered by the coming of age of television. For most of the last
fifty years , it was a monopoly of the public sector broadcaster. However, the nineties
inspired private sector enterprise across the television value chain. Since then, the
rapid growth of the television industry has made it the most significant component, in
value terms, of the entertainment sector. With increased hours of mass entertainment
programming during Prime time and better coverage of popular events, it has seen an
explosive growth in consumer mind share. Its status as the preferred mode of
entertainment of the people is obvious from the fact that it now contributes more than
60 percent of the entertainment industry s revenues.
Media in India initiated since the late 1700s with print media started in 1780, radio
broadcasting initiated in 1927, and the screening of Auguste and Louis Lumire
moving pictures in Bombay initiated during the July of 1895 is among the oldest
and largest media of the world. Indian mediaprivate media in particularhas been
free and independent throughout most of its history. The period of emergency (1975
1977), declared by Prime Minister Indira Gandhi, was the brief period when India's
media was faced with potential government retribution.
The country consumed 99 million newspaper copies as of 2007making it the
second largest market in the world for newspapers. By 2008, India had a total of
60,000,000 Internet userscomprising 6.0% of the country's population, and
4,010,000 people in India also had access to broadband Internet as of 2008 making
it the 18th largest country in the world in terms of broadband Internet users. India also
ranks 8th in the list of countries by number of television broadcast stations by 1997
statistics.
Television in India is a huge industry and has thousands of programmes in all the
states of India. The small screen has produced numerous celebrities of their own kind
some even attaining national fame. TV soaps are extremely popular with housewives
as well as working women. Several small screen actors have made it big in
Bollywood. Approximately half of all Indian households own a television, remarkable
for a country where 77% of the population lives on less than Rs.20 (US$0.50) per
day.

HISTORY
Indian small screen programming started off in the early 1980s. At that time there was
only one national channel Doordarshan, which was government owned. The
Ramayana and Mahabharata (both being Hindu mythological stories based on
religious scriptures of the same names) were the first major television series
produced. This serial notched ups the world record in viewership numbers for a single
program. By the late 1980s more and more people started to own television sets.
Though there was a single channel, television programming had reached saturation.
Hence the government opened up another channel that had part national programming
and part regional. This channel was known as DD 2 later DD Metro. Both channels
were broadcast terrestrially.

Post Liberalization Television

The central government launched a series of economic and social reforms in 1991
under Prime Minister Narasimha Rao. Under the new policies the government
allowed private and foreign broadcasters to engage in limited operations in India. This
process has been pursued consistently by all subsequent federal administrations.
Foreign channels like CNN, Star TV and domestic channels such as Zee TV and Sun
TV started satellite broadcasts. Starting with 41 sets in 1962 and one channel
(Audience Research unit, 1991) at present TV in India covers more than 70 million
homes giving a viewing population more than 400 million individuals citation
needed] through more than 100 channels. A large relatively untapped market, easy
accessibility of relevant technology citation needed] and a variety of programmes are
the main reasons for rapid expansion of Television in India.

It must be stressed that Television Entertainment in India is one of the cheapest in the
world citation needed
Cable television
India has over 130 million homes with television sets, of which nearly 71 million
have access to cable TV. The overall Cable TV market is growing at a robust 8-10%.
The cable TV industry exploded in the early 1990s when the broadcast industry was
liberalized, and saw the entry of many foreign players like Rupert Murdoch's Star TV
Network in 1991, MTV, and others. The emergence and notification of the HDVSL
standard as a homegrown Indian digital cable standard is likely to open an era of
interactivity on cable networks.

Sun TV (India) was launched in 1992 as the first private channel in South India.
Today it has 20 television channels in the four South Indian languages - Kannada,
Malayalam, Tamil and Telugu. Channels of the Sun TV network are also available
outside of India. Recently Sun TV launched a DTH service.

The Raj Television Network was started in 1994 and continues to be an important
player in the South Indian cable TV provider space.

In 1992, the government liberated its markets, opening them up to cable television.
Five new channels belonging to the Hong Kong based STAR TV gave Indians a fresh
breathe of life. MTV, STAR Plus, BBC, Prime Sports and STAR Chinese Channel
were the 5 channels. Zee TV was the first private owned Indian channel to broadcast
over cable. A few years later CNN, Discovery Channel, National Geographic Channel
made its foray into India. Star expanded its bouquet introducing STAR World, STAR
Sports, ESPN and STAR Gold. Regional channels flourished along with a multitude
of Hindi channels and a few English channels. By 2001 HBO and History Channel
were the other international channels to enter India. By 20012003, other
international channels such as Nickelodeon, Cartoon Network, VH1, Disney and
Toon Disney came into foray. In 2003 news channels started to boom.

TAM & INTAM

In 1994, claiming a heterogeneous and fragmenting television market ORG-MARG
introduced INTAM (Indian National Television Audience Measurement). Ex-officials
of DD (Doordarshan) claimed that vested commercial interests who only sought to
break the monopoly of DD introduced INTAM and that INTAM was significantly
weaker in both sample size, rigor and the range of cities and regions covered.

In 1997, a joint industry body appointed TAM (backed by

AC Nielsen) as the official record keeper of audience metrics. Due to the differences
in methodology and samples of TAM and INTAM, both provided differing results for
the same programs.

In 2001, a confidential list of households in Mumbai that

were participating in the monitoring survey was released, calling into question the
reliability of the data. This subsequently led to the merger of the two measurement
systems into TAM. For several years after this, in spite of misgivings about the
process, sample and other parameters, TAM was the defacto standard and monopoly
in the audience metrics game.

aMap
In 2004, a rival ratings service, funded by a slew of American NRI investors, called
Audience Measurement Analytics Limited (aMap) was launched. Although initially, it
faced a cautious uptake from clients, the TAM monopoly was broken.
aMap USP is that ratings are available as early as next day as compared to TAM's
timeline of next week.

Conditional Access System

CAS or conditional access system is a digital mode of transmitting TV channels
through a set-top box (STB). The transmission signals are encrypted and viewers need
to buy a set-top box to receive and decrypt the signal. The STB is required to watch
only pay channels.

The idea of CAS was mooted in 2001, due to a furore over charge
hikes by channels and subsequently by cable operators. Poor reception of certain
channels; arbitrary pricing and increase in prices; bundling of channels; poor service
delivery by Cable Television Operators (CTOs); monopolies in each area; lack of
regulatory framework and redress avenues were some of the issues that were to be
addressed by implementation of CAS

It was decided by the government that CAS would be first

introduced in the four metros. It has been in place in Chennai since September 2003,
where until very recently it had managed to attract very few subscribers. It has been
rolled out recently in the other three metros of Delhi, Mumbai and Kolkata.

Benefits of CAS
All the involved players and the viewers (consumers) can benefit greatly if CAS is
rolled out across the country. However, vested interests and the price of STB's have
been some of the reasons for delay in implementation of CAS all over India.
Consumers: Consumers get the option to choose the channels they want to pay for
and view, rather than receiving the whole set of channels that the Cable Operator
makes available to them, and hence benefit by having to pay only for the channels
they want to watch. Currently, in most of India, there is no segregation and
subscribers pay a blanket rate for the entire service.

Cable Operators: Cable operators get the opportunity to pay a part of the subscription
fees to the broadcasters only for the actual number of end users who opt for the
channel, rather than all households having cable access. This will help streamline
their infrastructure, operations and reduce points of dispute with the MSO's and
broadcasters by being able to disclose the exact number of subscribers for each
channel.

Broadcasters: Broadcasters have a long-standing complaint that the Cable Operators

under-declare the actual number of subscribers, and hence pass on only a fraction of

the paid subscriptions. With a system like this in place, it is possible to address the
exact number of subscribers with a cable operator.

Advertisers: CAS gives a far more accurate indicator of programme popularity with
only the actual subscribers of each channel being accounted for.

Government: Since the issue of addressability ensures a fair degree of transparency in

accounting across the entire value chain, it minimizes the loss of revenues to the
government through miss-reporting or non-disclosure of actual revenue figures. The
government also facilitates the introduction and development of consumer friendly
systems like pay per view, interactive programming, etc.

CURRENT STATUS OF THE INDUSTRY.

Out of its total current revenues of INR 139 billion, subscription contributed 53
percent i.e. INR73 billion. That is one and a half times the advertising revenues,
Which are at INR 49 billion. However , due to large skew in the last mile as discussed
later, the broadcaster s share of pay revenues amount to only around 17 percent, or
INR 12.5 billion. Other revenues , which include international distribution right,
amount to INR 14 billion.
As any industry matures , inevitably its growth starts slowing down. The Indian
television industry too is following this dictum, seeing its growth decelerating from
over 20 percent, till a few years ago, to less than 15 percent currently. However , it
would be a completely wrong to say that television has become a mature, sunset
industry . While the current sets of growth drivers are gradually reaching saturation,
there are a number of new initiatives, which can power a fresh round of expansion.
Some of the key factors are:

Introduction of addressability. In spite of apprehensions, public debate and

litigation, CAS was eventually launched in Chennai , providing valuable
lessons for future attempt to bring in addressability across nation, though the
impact of same is yet limited.
Alternative distribution platforms: DTH broadcasting has introduced the
power of choice to customers. The last mile distribution segment is expected
to see further action with the entry of new DTH players, IP-TV, broadcasting
services on DSL technologies, etc.
New players in niche genres offering more content choice to viewers. Niche
genres have significantly enhanced their proposition over the last few years
with the entry of several new channels. While , news and children s
programming segments accounted for the most of the new entrants, other
niche genres like religion and health also experienced the launch of several
new channels.
Meaningful regulatory intervention. The government needs to create a
conducive regulatory environment for rapid but stable growth by supporting
initiatives like digitalization of cable TVs, regulatory policy for DTH players ,
etc.

These trends have the potential to redefine the landscape of the broadcasting
industry in the country. The significance of such a redefinitions should be
understood in the context of the overall evolution of the broadcasting and
distribution market in India. the high growth that took place in a relative
regulatory vacuum in the last decade created a distortion in the distribution of
value amongst industry players. This has fostered an opaque transactional
environment, resulting in:
Lack of consumer choice for last mile access.
Under declaration of subscriber numbers resulting in revenue loss for
broadcasters and tax loss for the government.
Absence of uniform pricing with prices varying across geographies and
consumer segments.
Lack of level playing field for alternatives platforms like DTH,IPTV etc
resulting from unreal cost structures of incumbent access providers and
non- uniform licensing conditions.

SUCCEDING IN TURBULENT TIMES

Over the next five years, the industry is projected to grow at a CAGR of 12.5%to
reach the size of Rs. 1,05,200 crore by 2013on the basis of following factors:

Favorable demographic composition and

strong long-term fundamentals of the Indian economy. Unlike other countries,
Indian economy is still growing, albeit at a lower rate than before. At total of
70 % of Indian population is below 30 years of age presenting a good
opportunity for marketers.

Advertising to GDP ratio in India is still

at a low of 0.47%, vis--vis developed economies such as the US, where it is
as high as 0.9 percent.

Media penetration in the country remains

low. There are still 359 million people in India who can read and understand
any language but do not read any publication. This represents significant
opportunity of expanding the market.

The business imperatives in 2009-2010 needs to have increased focus on

innovative strategies that include:
User segmentation to provide increased
options for targeted messaging through niche vehicles.
Innovation and flexibility, in content,
formats, delivery mechanisms, and marketing to reach out to new audiences
and advertisers in multiple ways.
Focus on optimizing margins, through re
engineering processes, structures, and working capital management.
Leveraging IP to help ensure value
maximization from existing libraries.
Select market expansion given the trends
in regionalization, overseas markets, and digital media.
Greater
accountability,
through
demonstration of effectiveness of media properties.
Establish standards for corporate
governance and governance and move towards greater proffesionalization.
Differentiation of brand through creation
of strong positioning, as required in competitiveness times.
For key players, market growth through
consolidation, is increasingly an option under consideration to ensure
development of strategic portfolios with multimedia capabilities and synergies
Producing salient content.

SIZE AND GROWTH OF THE INDUSTRY

Advertising revenue is one of the main drivers behind the growth of the main drivers
behind the growth of the Indian M&E industry. Over the past three years, it is
estimated to have grown at a CAGR of 17.1%. Going forward , the advertising
industry is expected to exhibit a lower growth rate owing to the turbulent macroeconomic environment. The advertising revenues are estimated to grow at a CAGR of
12.4% over the next five years.
The key growth drivers that have provided the necessary growth impetus and altered
the industry dynamics in India are:
SOCIO-ECONOMIC ENVIROMENT. Indias demographic composition ensures that
it continues to remain an attractive market for various products and services. Indias
increasing GDP and consequent rise in income levels across urban, semi urban, and
rural house holds is leading to an increase in population of consuming class in India.
As compared to some of the developed countries, India is in a better position since it
is witnessing not a recession but a slowdown. Further the favorable demographic
composition occurs well for India. The average Indian consumer is getting younger.
More than 50 percent of India s population is likely to be under the age of 30 even in
2015.
The emergence of Indias young middle class with greater earning power and higher
disposable income signifies good potential for increased marketing and advertising
spends in the country. Further the potential for further rise in advertising spends
remain strong. The per capita income of the country has been rising steadily over the
past few years. The ad spend to GDP ratio for India, has also shown a slow distinct
growth trend in the past few years.
These important macro-economic indicators have driven the growth of the M&E
industry India in recent times. The fundamentals of the Indian economy remain
strong, and the recent effects of the global economic downturn are likely to have a
short-term impact in India. In the long run the Indian economy is expected to grow
steadily, leading to continuous rise in the disposable income of the country.
NARROWCASTING. Narrowcasting involves segmentation of the target group and
coming out with content, programs and formats that appeal best to that target group,
thereby enabling advertisers to reach out to a focus audience. Going forward, the
trend of narrowcasting is only expected to increase further and the industry is likely to
see more audience fragmentation across a myriad of content genres. One such
instance is the advent of Indian premier league (IPL) in 2008 as a mainstream
entertainment genre, which had an impact across the entire Indian M&E industry. The
telecast of the tournament s final on june1, 2008, garnered an average TVR of 9.8,
which was historic for a domestic tournament and this was reflected in the advertising
rates for the matches. Sports marketing, which is still at a nascent stage in India, is
expected to grow rapidly now as broadcasters start aggressively selling cricket and
other sports as entertainment packages.
REGIONALIZATION. There are two aspects to regionalization. The first refers to
providing content in regional languages. The second aspect refers to content providers

catering to a specific geography by providing locally relevant content. With the

increase in the spending power of population living in smaller cities, now even the
tier2and tier3 towns are emerging as important growth centers. This has increased the
demand for regional content, and companies are now increasing focus to cater to this
demand. Regional content is emerging as the one of the most significant aspects of
customization of content , and hence is emerging as a significant aspects of
customization of content, and hence is emerging as a significant growth driver fro the
M&E industry. Some of the recent trends in this aspect have been:

Established players in the English newspapers space foraying into Hindi and
vernacular languages.
Growth in regional channels and expansion of regional channels portfolio both
by regional players as well as national players.
Emergence of city-specific channels.

Regionalization is likely to continue to be an important growth driver for the

media industry. In print media, regional dailies are expected to grow faster than
the national dailies: the sector may witness narrowing down of advertising rates
differences between the two. In TV, costs associated with up of regional channels
remain much lower than that of national channels and the difference between the
advertisement rates is coming down making setting up of regional channels an
attractive proposition broadcasters.
INTERANATIONALIZATION. Indian players are no longer limiting their
ambitions within Indias national borders. M&E companies in India, similar to
their global counterparts, too have started to eye international markets by targeting
media consumers outside India. International demand for Indian content has been
there for some time, with the telecast of Indian TV channels across the world , and
Bollywood releases getting a significant share of their box office earnings from
abroad. With the large NRI population base of about 25 million to serve, M&E
companies continue to have a good opportunity to further increase their revenues
from overseas markets. In fact, Indian companies are also now looking beyond the
NRI Diaspora and attempting to target the local audience as well. Further with
two significant acquisitions of the foreign media companies, Indian players have
taken the first step towards establishing their presence in the mainstream global
market.
Internationalization of Indian media can be characterized in three different ways:
production of content for global audience, providing media specific services to
other countries, and acquisitions/ partnerships/strategic alliances with media
properties abroad.
As Indian media companies look to expand their footprint, international
consumption of Indian media is expected to be an important growth driver fro the
industry.
ORGANIZED FINDING. Over the past few years, the M&E industry has
witnessed increased investments in the form of public issues, strategic stakes, and
private equity funding. These investments have come from both the established
industry majors as well as private equity players, from the global as well as Indian
markets. Most of the organized funding from the global players has been
concentrated on the medium of television.

Gradually, more and more players in the industry are availing organized sources
of finance. this is ushering an era of corporatization and professionalism.
Availability of funds has also resulted in the vertical and horizontal integration
between different players , in the value chain. This availability of larger sources of
organized funding is an indicator of how the Indian M&E industry has come of
age.
DIGITIZATION. Digitization has transformed many sectors of the global media
industry. Television, films and music industries have been the major beneficiaries
of digitization. In the past few years, the Indian media industry has witnessed
advent of digital TV distribution platforms digital cable, DTH and IPTV,
digitization of music libraries, and sales of online and mobile music.
Digitization of TV provides for a better quality of viewing experience for the
consumers along with a greater bandwidth of channels and the same time through
add-on services, provides multiple monetization opportunities for the distributor.
DTH has led the digitization drive in India so far with an expected 10 million
subscribers by the end of 2008. Digitization of cable is own happening in nonCAS areas as well as cable players look to tackle the increasing competition
coming from digital distribution mediums like DTH.
Commercial IPTV services have also started in the country and these provide
another digital alternative to consumers. As these digital platforms garner a
greater share of C&S users in India, it is likely to lead to a more organized and
addressable distribution market in the coming years. In the ailing music industry,
sales of digital music are now showing potential of offsetting the impact of the
rapidly declining physical unit sales and pushing the industry toward healthier
growth rate. In India mobile music takes a large portion of the digital sales pick,
and within mobile music, ring tone sales command a dominating share. Going into
the future however, full song downloads on mobiles as well as well paid song
download over the internet are expected to also become important revenue
streams for the industry.
CONVERGENCE. Convergence refers to the mode of creating multiple touch
points for the end consumer by delivering the same content via-different media
platforms. The Indian M&E industry is witnessing increasing convergence
between entertainment information and telecommunications , fueled by the
merging of functionalities of customer end terminal devices like TV , personal
computers, and mobile phones to carry similar kind of content. Convergence is
changing the traditional industry structures, existing business models, and
distribution mechanisms.
Convergence is expected to transform the landscape of the industry by enabling
players to leverage cross media synergies and attract a whole set of new
consumers. Advent of 3G services in India , may further aid convergence, by
making the mobile phone a convenient access point for video and audio media.
DEREGULATION. Regulations provide uniform framework and direction to the
market in order to guide it towards being fair and efficient. Government has also
taken some positive steps on the regulatory front which has provided a new wave
of growth for the Indian M&E industry. The industry continues to look at the
government for more regulatory reforms that may bring in the new waves of
growth.

OUTCOME: NEW MARKET EXPANSIONS

All the above-mentioned growth drivers together have transformed the contours of
the industry. Players are increasingly coming out of their traditional domains and
establishing their presence in local areas. Players from other sectors such as IT
and telecom are also entering the M&E sector. Competition and technological
innovations have increased and as a result, the overall M&E market is growing.
ROLE OF TECHNOLOGY AND COMPETITION.
Technology has played a key role in influencing the entertainment industry by
redefining its products, cost structure, and distribution. With the arrival of DTH,
distributors are in a position to offer channels, better picture quality, and add on
services to the consumers. Similarly, digital cinema has enabled the industry
players to release the film prints simultaneously across both the big cities and
smaller towns. thus facilitating wider release of film prints and improved
collections. Technology has thus transformed both the content delivery as well as
viewership experience, besides providing new growth opportunities to the players.
As a result of the attractive growth opportunities the industry is witnessing
increased competition from the hitherto non-competitors, such as players from the
telecom and IT sector. At the same time, new players are expanding the market
itself. For instance, entry of new players in the DTH has expanded the DTH
market overall. At present, in a five-operator scenario, total number of payDTH
subscribers is estimated to have reached 10 million households by the end of
2008.
Existing players are expanding across segments. Faced with increased competition
from new entrants, businesses are enhancing their scale of operations by
expanding their footprints across sectors and geographies. Customers retention is
also an imperative, and companies are improving upon their product features,
service offerings and value propositions. These activities are further enhancing the
competition in the market place, as a result of which an array of media content,
consumption, and delivery choices are being presented to the Indian consumer.
Increasing power of media aggregators. The Indian media industry, especially the
TV and film sectors, is seeing an increase in the power of content
aggregators/distributors as distribution gets more organized. In TV distribution the
bargaining power of MSOs and DTH players is high and they command high
bandwidth fees for carrying channels in their networks. Similarly in films,
aggressive market expansion plans by established players such as PVR and
Adlabs is leading to increase in the market power of organized exhibitors and they
are in a position to bargain for better revenue sharing terms with the distributors.
With increased marketing spends, ambitious growth plans, and by virtue of access
to the end consumers, the power of these players may continue to increase in the
near future. Going forward, media players are likely to increasingly leverage their
content across different media platforms, leading to the emergence of more media
conglomerates. At the same time, competition is set to intensify further and the
rapid rise in number of players may eventually lead to consolidation in most of the
sectors.

The Indian media and entertainment industry , estimated at US$6.25 billion in

2006, is one of the fastest growing sectors of the Indian economy. Thanks to an
expanding economy that has spawned an emerging middle class and increased
consumer spending. M& E is expected to grow with the economy , which shows
no signs of slowing down.
Spring board research data shows that guided by new business opportunities and
challenges in the sector , such as the shift to digital content distribution and
storage , Indian M&E companies are on the verge of an IT overhaul . As M&E
companies strive to meet the publics digital information and entertainment
demands in an increasingly competitive landscape , these companies are pushing
for technological innovations to enable cutting-edge services for their customers
and greater efficiencies for themselves.
Our five key findings from this study are given below:
1.
IT Market Size in Media &
entertainment market to grow from 2005-2010
In 2005, the IT market size in India s M&E sector measured US$79 million.
Springboard research expects the market to grow at a CAGR of 32% to reach
US$300 million by 2010. At present software solutions have the largest share
of the market to grow faster than software and hardware in the next few years.
2.

M&E urgency to reach new markets is

guiding IT investments

The current economic boom in india traves to small cities and towns beyobd large
metropolitan areas, reaching out to perspective customers in these locations is
high on the agenda of the most media and entertainment companies . these cities
and towns present a huge new groth opportunity for these companies. As such,
M&E companies are investing in technology to iad their expansion into new
markets.
3.

Digitization and streamlining content

delivery and distribution is top strategic focus for M&E companies.
M&E decision makers in all segments( prints, films, TV, music, radio, online
games and web portals) named digitization of content as a top business priority.
The realization that digitization enables reliable content storage and archivingand
opens new business channels is higher among print, media and music companies .
however, springboard research also found significant interest in digitization
among companies in other M&E segments, Internet and mobile communications
devices. For example was the second most important priority in the industry.
4.

M&E
companies are focused on
industry- specific solutions
Our research shows that the majority of media and entertainment companies
have invested or plan to invets the largest portion of their IT budget on
industry- specific solutions. Of the 80 media and entertainment companies that
springboard research intervened for this report, 47% said they have

implemented industry-specific solutions as their largest IT solutions for

meeting their business needs.
5.
Local it vendors have a significant
presence in the M&E market
A significant finding from our research is the absence of a clear leader among
IT vendors serving the media and entertainment sector. The focus of local
vendors on developing customized solutions has helped them create a
significant presence in the M&E market. Springboard research estimates that
local vendors have a 35% share in the IT market for the M&E segment.
Among the multinational corporate (MNC) vendor. IBM was the most sought
after IT vendor by Media and entertainment companies.
ADDITIONAL KEY REPORT FINDINGS ARE OUTLINED BELOW:

Our research shows that M&E

companies spent the largest share of their IT budget (48%) on
software, followed by hardware (41%). The segments spending the
highest in these areas included the online gaming industry spending
80%of their IT budget on software, and TV broadcasting companies,
who spent 48% of their IT budget on hardware.

The majority of M&E companies

interviewed spent more than US$225,000 each on IT in the past 24
months. 41% of them spent more than US$700,000 implementing IT
solutions during the same period.

Knowledge of the M&E industry and

business dynamics, existing relationships, strengths in specific
solutions areas , and strong services and support are the most important
deciding factors for M&E companies when it comes to selecting an IT
vendor.

COMPARITIVE
ANALYSIS
OF
NATIONAL AND REGIONAL CHANNELS
ON THE BASIS OF ADVERTISING
All that are known it the only way of revenue of channels whether national or regional
is via advertisements. So in order to compare them one needs to clearly identify the
level of advertising on the national channels, and hence advertisements become an
important aspect for the comparison of both the national and regional channels.
The categories in which the largest advertisements were done are:

Apart from them the fastest growing categories on TV during 2008-2009 are

Now considering each category in a detailed view we come to know that

SHAMPOOS/CONDITIONERS:

There was a 65% growth in TV advertising of 'Shampoos/Conditioners' category

during Jan - Jul '08 compared to same period of last year.

Advertising of Shampoos/Conditioners category on National and Regional

was in the ratio of 53:47 during Jan Jul 08.
Punjab, Andhra Pradesh, Tamil Nadu were the top 3 states contributing
maximum in overall advertising of Shampoos/Conditioners category on
Regional Channels in Jan Jul 08.

Considering the automobiles sector we can see that the advertising of automobiles
was also more in the national channels as compared with the regional channels.

AUTOMOBILES:

MOBILE PHONES:

In case of mobile phones during H1 '08, 27% rise in TV ad volumes of Mobile

Phone category compared to same period in 2007.

National Channels had the largest share of Mobile Phone TV ad pie followed
by South & East Zone channels with 14% & 7% share respectively during H1
'08

Phone advertising on Regional Channels during H1'08.

West Bengal & Tamil Nadu leads with an equal advertising share of 28%
followed by Andhra Pradesh with 18% share of overall Mobile Top 5 States
contributed for more than 88% share of Mobile Phone advertising on TV
during H1'08.

In case of two wheelers During H1 '08, TV advertising of 'Two Wheelers' saw

a rise of 4% compared to H1 '07.
During H1 '08, advertising of Two Wheelers on National and Regional
channels was in an advertising ratio of 66:34.
Tamil Nadu, Andhra Pradesh and Karnataka were the top 3 states in
advertising of Two Wheelers on Regional Channels

For the print advertising the During H1 '08, Print advertising on TV has seen a
growth of 16% compared to H1 '07.
Radio Channel promotion grew by 5% on TV during 1st half of 2008
compared to same period in 2007.

Considering the soaps category the During Jan -May '08, advertising of
Soaps* category on TV has seen a rise of 19% compared to same period in

year 2007.

During Jan May 08, Soaps* category advertising on Regional and National
channels in the ratio of 61:39.

Maharashtra', 'Andhra Pradesh' and 'Karnataka' were the top 3 states

accounting for more than 50% advertising share of Soaps* category on Regional

channels during May-2008

In case of cellular services During Jan - May '08, advertising of 'Cellular

Phone Services' grew by 2 times on TV compared to the same period in 2007.

During Jan - May '08, advertising of 'Cellular Phone Services' on National and
Regional channels in the ratio of 70:30.

Top 3 states that had contributed maximum in overall advertising share of

'Cellular Phone Services' on Regional channels were 'Tamil Nadu', 'West Bengal' and
'Andhra Pradesh'.

In case of domestic airlines Advertising of International and Domestic

Airlines on TV in the ratio of 89:11 during Jan - May '08.

During Jan - May '08, TV ad volumes of Domestic Airlines has seen a drop of
27% compared to Jan - May '07.

Advertising of Domestic Airlines on National and Regional Channels in the

ratio of 67:33 during Jan - May'08.

EDUCATION SECTOR:

In case of educational sector Compared to Jan - May '07, TV advertising of

Education sector has seen a rise of 48% during Jan - May '08.

* Advertising of Education sector on Regional and National channels was in the

ratio of 70:30 during Jan May 08.
* Tamil Nadu and Madhya Pradesh together contributed for 40% share of
overall advertising share of Education sector on Regional channels during Jan May
08.

* TV advertising of Education sector saw a rise of 65% during 2007 compared to

2006.
* Maximum advertising of Education sector during Q2 and Q3 of 2007 and 2006,
which is time when School and Colleges reopens.
AIR CONDITIONERS:
In case of ACs 49% growth in TV advertising of Air Conditioners during Jan-Apr '08
compared to Jan-Apr '07.

* During Jan-Apr '08 advertising of Air Conditioners on National and Regional

channels was in the ratio of 75:25.
* Tamil Nadu ' and 'Andhra Pradesh' leads in advertising of Air Conditioners on
Regional Channels during Jan-Apr '08.
* During Jan-Apr '08, the Top 5 states were from the South zone which contributed
for 83% share of overall Air Conditioner advertising on Regional Channels.

ICE CREAMS:
TV advertising of Ice Creams has seen a rise of 15% during Jan-Apr '08 compared
to Jan-Apr '07.
* National and Regional channels were used in an advertising ratio of 72:28 by
the Ice Cream brands during 2007.

* Tamil Nadu had more than 50% share of Ice Cream advertising on Regional
channels followed 'West Bengal' and 'Andhra Pradesh' with 29% and 7% share
respectively during 2007.

BEVERAGE INDUSTRY:

During 2007, advertising of Beverage Industry has seen a growth of 40% on TV

compared
to

2006.

During 2007, advertising of Beverage Industry on National and Regional channels in

the ratio of 53:47.

LIFE INSURANCE:

* Maximum 'Life Insurance' advertising was done on 'Regional GEC' followed by

'Hindi News'.

* Among the News genres viz. Hindi, English and Regional News channels took
2nd, 3rd and 4th slots respectively during 2007.

In the regional ad pie, South zone channels acquired 15% share of advertising.
Comparing this advertisements of different categories together for the national and
regional channels

CATEGORIES
Mobiles
Two wheelers
Cellular services
AC
Beverage

% ADVERTISING ON
NATIONL CHANNELS
76%
66%
70%
75%
53%

% ADVERTISING ON
REGIONAL CHANNELS
24%
34%
30%
25%
47%

Ice creams
Educational advertising
Shampoos

72%
70%
53%

28%
30%
47%

On the basis of advertisement of different categories combined together and then

comparing it with the level of advertisement on national and regional channels it has
been found that the national channels together advertise for 67% of the total
advertisements in terms of the percentage of advertisement that are done altogether
for the national and regional channels whereas the regional channels only amount to
33% of the overall advertisement which clearly indicates that the regional channels
are far behind the national channels in the level of advertising and thus in the revenue
generated by the national channels. Hence we can say that national channels are far
more superior in the level of advertising and lso the revenue generated.

CO M P AR A TIV E
A NA LYS IS
OF
NA TIO NA L
AN D
RE G I O NA L
CH A NN E LS O N
THE
B AS IS O F
CH A NN E L S H AR E.
Channel share is share of that particular channel in the entire list of channels.
Comparing the channels share of national and regional channels will allow us
understand the viewership of Indian viewers. It will also help us in knowing whether
the regional channels are more successful or the national channels in terms of
viewership.
In order to know about the channel share we collected data about the number of
national and regional channels altogether broadcasted in the entire country.
HINDI GEC:
9X
BINDASS
DD1
STAR UTSAV
SAB TV
SAHARA ONE
SONY ENTERTAINMENT TV
STAR ONE
STAR PLUS
ZEE NEXT
ZEE SMILEHIN
ZEE TV
HINDI MOVIES:
B4U MOVIES
BINDASS MOVIES
FILMY
CINE WORLD
MAX
MANORANJAN
STAR GOLD
ZEE CINEMA
HINDI NEWS
AAJ TAK
DD NEWS
IBN 7
INDIA TV
JAIN TV
LIVE INDIA
NDTV INDIA
NEWS 24
STAR NEWS

TEZ
ZEE NEWS

HINDI BUSINESS NEWS

CNBC AWAAZ
ZEE BUSINESS
SPORTS:
DD SPORTS
ESPN
NEO SPORTS
NEO SPORTS PLUS
STAR CRICKET
STAR SPORTS
TEN SOPRTS
ZEE SPORTS
KIDS

ANIMAX
CARTOON NETWORK
DISNEY CHANNEL
HUNGAMA TV
JETIX
CBEEBIES
NICKELODEON
POGO

MUSIC:
9XM
B MUSIC
B4U MUSIC
CHANNEL V
ENTER 10
ETC
JOO MUSIC
JUKEBOX
MTV
MUSIC INDIA
SITI MUSIC
VH1
YO MUSIC
ZEE MUSIC
LIFETSYLE:
DISCOVERY TRAVEL & LIVING
FASHION TV
FE TV
IMAGINE SHOWBIZ
LIFE & STYLE
NDTV GOOD TIMES

 ZEE TRENDZ
ZOOM
INFOTAINMENT:
ADVENTURE ONE
ANIMAL PLANET
DISCOVERY
FOX HISTORY & ENTERTAINMENT
LEMON
LIVING ASIA
NATIONAL GEOGRAPHIC CHANNEL
NATIONAL GEOGRAPHIC WILD
VOYAGER TV
ENGLISH MOVIES:
HALLMARK CHANNEL
HBO
HOLLLYWOOD
MGM
PIX
STAR MOVIES
ZEE STUDIO
ZEE CLASSIC
ZEE PREMIER
ZEE ACTION
ENGLISH ENTERTAINMENT:
AXN
BBC ENTERTAINMENT
STAR WORLD
ZEE CAF
ENGLISH BUSINESS NEWS:
CNBC TV 18
NDTV PROFIT
ENGLISH NEWS
BBC WORLD
CHANNEL NEWS ASIA
CNN IBN
FOX NEWS INTERNATIONAL
HEADLINES TODAY
NDTV 24*7
NEWS LIVE
TIMES NOW
VOICE OF AMERICA

DD OTHERS
DD BHARTI
DD GYAN DARSHNA
DD INDIA
DD NORTH EAST
DDPATNA
DD RAJYA SABHA
DD URDU
DD WORLD
DD 12 KASMIRI
DD 13 ASSAMESE
DD2
LOKSABHA TV
AP REGIONAL CHANNELS
BHAKTI TV
C CHANNEL
CTV
DD8 TELUGU
EENADU TV
ETV TELUGU NEWS
GEMINI MUSIC
GEMINI NEWS
GEMINI TV
MAA TELUGU
MANNA TELUGU
NTV NEWS
SITI TELUGU
TEJA TELUGU
TV5
TV5 NEWS
TV5
TV9
UP REGIONAL + BIHAR
DD16 LUCKHNOW
ETV BIHAR
PURVA TV
SAHARA SAMAY UP
ETV UTTAR PRADESH
SAHARA SAMAY BIHAR
DD BHOJPURI
GUJARATI REGIONAL CHANNELS
DD11 GUJARATI

ETV GUJARATI
ZEE GUJARATI
DELHI REGIONAL CHANNELS
DD DELHI
DILLI AAJ TAK
NDTV METRO NATION
SAHAR SAMAY NCR
TAMIL NADU REGIONAL CHANNELS

BHARATI TAMIL
CHUTI TV
DAN TAMIL OLI
DD5 PODHIGAI
IAMAYAM
JAYA MAX
JAYA PLUS
JAYA TV
KALAIGNAR TV
KTV
MAKKAL TV
MEGA TV
RAJ DIGITAL PLUS
RAJ MUSIC
RAJ TV
SPLASH
SR TV
SS MUSIC
SUN MUSIC
SUN NEWS
SUNTV
SUR SANGEET
SURYAM FM
VIJAY TV

WEST BENGAL REGIONAL CHANNNELS

24 GHANTA TV
AAKASH (BANGLA)
ATN BANGLA
ATN KOLKATA
CHANNEL 1
CHANNEL EIGHT TALKIES (BANGLA)
CTVN AKD PLUS
DD7 BANGLA
ETV BANGLA
KOLKATA TV
NE BANGLA
SANGEET BANGLA
STAR ANANDA
TAAZA TV

TARA MUZIK
TARA NEWS
ZEE BANGLA

MAHARASTRA REGIONAL CHANNELS

DD10 SAHYADRI
ETV MARATHI
MI MARATHI
SAHARA SAMAY MUMBAI
STAR MAJHA
STAR PRAVAH
ZEE 24 TAAS
ZEE MARATHI
ZEE TALKIES
KARNATKA REGIONAL CHANNELS
4M
C BANG
DD9 CHNADANA
ETV KANNADA
KASTURI
SUVARNA
TV9 KARNATKA
U2
UDAYA MOVIES
UDAYA TV
UDAYA VARTHEGALU
ZEE KANNAD
KERALA REGIONAL CHANNELS
AASHIRVATHAM
AMRITA TV
ASIANET
ASIANET NEWS
ASIANET PLUS
ASIANET TELE INTERACTIVE
BHAARATH TV
DD4 MALYALAM
INDIAVISION JAIHIND TV
JEEVAN
KAIRALA
KIRAN TV
MANORAMA NEWS
PEOPLE
SURYA TV
WE
YES INDIA VISION
MADHYA PRADESH + CHATTISGARH REGIONAL CHANNELS
DD BHOPAL
ETV MADHYA PRADESH

SAHARA SAMAY MP

ORISSA REGIONAL CHANNELS

DD6 ORIYA
ETV ORIYA
ETV
TARANG
PUNJABI REGIONAL CHANNELS
DD PUNJABI
ETC PUNJABI
MH1
MH1 NEWS
NEWS TIME
PBC TV
PTC NEWS
PUNJABI TV
STANDARD WORLD
ZEE PUNJABI
RAJASTHAN REGIONAL CHANNELS
DD14 RAJASTHAN
ETV RAJASTHAN

On comparing the national and regional channels on the basis of channel shares we
found out that there were around 132 national channels being broadcasted throughout
the country whereas there were only around 124 regional channels altogether being
broadcasted in these 14 states thereby giving an average of 8 channel per state which
was very less as compared to the national channels.
Since these channels are regional channels and therefore
have a language barrier attached to them due to which they are not much famous in
other states and due to which they are totally rejected in other states.
Some of the states were also having large number of regional channels like Tamil
Nadu, Kerala, and West Bengal with channels up to 24, whereas other states were also
having very less channels like Rajasthan with just 2 regional channels. Although these
were quite of large numbers in some particular states still they lacked far behind as
compared to the number of national channels, which were 132, and which were
broadcasted simultaneously all across the states.
These national channels because of being in the national
language called Hindi which is the most famous and the most spoken language
throughout the country and in English which is the second most famous language in
the country are easily being understood across all states in the country and thus there
programs are famous throughout the states without any language barrier.
The new launches in 2008 for the national and regional channels are:
NEW LAUNCHES: 2008
HINDI GEC:

COLORS
NDTV IMAGINE
FIRANGI

HINDI NEWS:
CNEB
INDIA NEWS
VOICE OF INDIA
HINDI MOVIES:
UTV MOVIES
LIFESTYLE
E24
ENGLISH BUSINESS NEWS:
UTVI
ENGLISH MOVIES
NDTV LUMIERE
WORLD MOVIES
ENGLISH NEWS:
NEWS X
SKY NEWS INTERNATIONAL
SPORTS:
NEO CRICKET
NEWS LIVE
KIDS:
SPACE TOON
UP REGIONAL:
SANGEET BHOJPURI
MAHUA TV
MP REGIONAL:
SADHNA NEWS MP
STANDARD WORLD
VOICE OF INDIA
ZEE 24 GHANTE
WB REGIONAL:
STAR JALSA
GUJARARTI REGIONAL:
TV9 GUJARATI
RAJASTHAN REGIONAL:
VOICE OF INDIA RAJASTHAN

PUNJABI REGIONAL:
JUST TV PUNJABI
PTC PUNJABI

MAHARASHTRA REGIONAL:

SAAM TV

IBN LOKMAT

KARNATAKA REGIONAL:

HASYA TERE

SUVARNA NEWS

AP REGIONAL:
MAA MUSIC
NAWULA TERA
SRI VENKATESWARA BHAKTI
VANITHA TV
SITARA TV
TN REGIONAL:
COMEDY THIRAL
ISIVARUVI
VASANT
ZEE TAMIZH
RAJ NEWS 24*7
KERALA REGIONAL:
CHIRI THIRA
R-PLUS
OTHERS:
AASHIRWAAD
CABLE ENGLISH
CAREER TV
CHANNEL 10
HOME SHOP 18
SPACE HOME & WORLD
STARLITE TV
TRACE
TV SOUTH ASIA
ONE TV

considering the above data we can see that the number of new launches of national
channels in the country were 28 whereas the number of regional channels that were
launched in 2008 were 26 which are slightly less as compared to the national
channels. Considering the regional channels on the average basis there were only 2
channels approximately being launched per state which were again quite less as
compared to the national channels which will be broadcasted throughout the country.
This data also shows that the national channels have a far more better grip on the
Indian viewers as compared to the regional channels in terms of the content as the
channel share of national channels is higher as compared to that of regional channels.
But considering that these regional channels will be seen only in particular
states we can say that regional channels are far more strong in comparison to regional
channels in terms of the regions where they are being watched.

SWO T A NA LYS IS
CH A NN E LS

OF

NA TI O NA L

STRENGTHS:
National channels are the most widely reaching channels, having a
vast customer reach due to which they are able to have better advertising revenues
and thus are able to develop better programmes in order to keep their customer base at
large.
The growing middle class with higher disposable income has become the strength of
M&E industry and therefore perhaps of the national channels. People today are
subscribing more and more to cable in order to view many national channels.
Since India is a highly populated country the low cost of production and high
revenues ensure a good return on investment for the national channels.
WEAKNESSES:
Lack of cohesive production & distribution infrastructure, especially
in the case of small national channels. Indian channels are still not able to frame out
good programmes, which can be compared to international standard programmes, and
many are just an Indian versions of the internationally recognized programmes.
The lack of efforts for media penetration in lower socio-economic classes, where the
media penetration is low. The majority of national channels are only being watched in
cities and hence the rural people are still not able to watch all these channels, which
has again reduced the cities.
OPPORUNITIES:
To increase there reach to the lower sections of the society by
reaching in the rural areas with a minimum of the cost which may be bearable by the
customer.
The national channels are poor among the poorer sections of the society, offering
opportunities for expansion in the area.
Rise in the viewership and the advertising expenditure.
Technological innovations like animations, multiplexes, etc and new distribution
channels like mobiles and Internet have opened up the doors of new opportunities in
the sector.
THREATS:
Lack of quality content has emerged as a major concern because of the 'Quick- buck'
route being followed in the industry. Still the national channels are not able to have
good programs, which can be compared to international standards. Most of the
programs are just playing on the saas bahu phenomena or are just the Indian versions

of some international programmes like AMERICAN IDOL- WHO WANTS TO BE A

MILIONAIRE etc.
Most of the national channels are focused and targeted on the northern belt of India
thus creating programs, which does not create interest in the people of other regions
due to which the regional channels are able to dominate these regions in the south and
the east. Hence a greater focus is required to develop programmes for the suitability
and interest of these viewers.

FU TU R E P RO S P EC TS IN N A TI O NA L
AND R EG I O N AL CH A NN ELS
In this new phase of growth, the sector is expected to grow at an annual rate of of
almost 18 percent to reach INR 371 billion by 2010, with subscription revenues
forming the lion s share at INR 250 billion. It is also expected that the will get a
fairer share of the subscription Pie. Advertising revenue is expected to grow at a
modest rate of 8 percent to reach INR 78 billion in six years.
The true potential of television advertising however is much higher. It could reach
INR 150 billion by 2010, depending on the following factors:
o Speed and effectiveness of the roll- out of the broadcasting sector
reforms.
o The quantum of investments made by various players over the next
few years on rolling out digital platforms., and
o The entry of television companies into the distribution sector.
The ensuring sections discuss the various drivers of growth that could take television
to the next phase of evolution.
Advertising
As per industry estimates, the total advertisement spends in India last year was
approximately INR 118 billion. However at 0.50 percent. India continues to have one
of the lowest advertising spend to GDP ratios amongst peer economies.
This underscores the significant potential India has yet to achieve vis--vis advertising
budgets.
However, this is set to change. A growing middle- class will spur the increasing tide
of consumerism and a growing lineup of global brands will continue to be attracted
by this expanding market.
Consequently it is expected that the ad- spend to GDP ratio will increase steadily over
the next few years.

OOH
8%

Radio
3%

Internet
1%

TV
41%

Print
47%

Cinema
0%

The above table indicates the allocation and growth of the advertising spends in India
across various media. Print is still the largest recipient of advertising revenues ,
accounting for 46 percent of the advertising pie , after a temporary slump, is currently
at a rate faster than that of television. Share of television seems to have stabilized at
round 41 percent. After increasing consistently, for about 6-8 years. The overall
media mix in India mirrors that in most advanced countries, where television and
print jostle for dominance in the space of advertising expenditure.

In the Indian context, there is a further potential for television to increase its ad share.
It is expected that over the next three years, both print and television will each
command around 43 percent of the market, with the balance 14 percent being split
between radio, outdoors and others.

Who is advertising?
Until recently , FMCG companies and consumer durables marketers were the main
advertisers on TV channels. Today . the advertisers segment has expanded to include
youth and teen products, financial products and services, educational products and
services, corporate image building , telecommunications, computing, vehicles, and
mobile telephony, to name a few. It is interesting to note that according to TAM
Media research, on air promotions that are carried out by the channels themselves
account for almost 40 percent of the total airtime with a significant portion of them
being shown on prime time. Going forward, with capacity utilization of airtime
improving, the opportunity cost of self-advertising will increase and it is expected to
decline.

Ad-Spends
Mass entertainment continues to attract maximum ad spends , but its share is being
gradually ceded to niche channels. The major beneficiaries have been News,
Regional and Sports channels
Some of the key aspects of television advertising in India are:

Mass entertainment channels have the largest loyal advertising

base. Around 17-18 of the top 25 advertisers advertise only on mass entertainment
channels.
Consumer goods advertise mostly on mass entertainment, films and
Hindi news.
Luxury and lifestyle products are advertised across all major
genres.
Financial products like banking and insurance advertise primarily
on English news and Business channels.
Organized retail, which is one of the larger advertising segments in
developed economies like the US, has yet to impact the Indian advertising industry in
a significant way. As the retail industry in India develops and begins to realize the
potential in the near future. It is expected to follow its global counterparts and become
a major advertiser on television.

Volume of advertising in INDIA

An analysis of television programming indicates that advertising in India, on an
average , amounts to192 seconds(3.2minutes) per hour. It is still significantly lower
than several other countries. Of course, in case of Prime time for mass entertainment
channels, this number could go as high as 600 seconds (10 minutes).

International norms on Ad-clutter

The norms and standards for the amount of advertising that can be shown on TV vary
from country to country. TAM Media research has compiled an illustrative list of
standards, some of which are mentioned below:
Australia broadcasting authority recommends 10 minutes of advertising per
hour of childrens programming and upto 15 minutes for non-prime programmes.
Philippines stipulates a commercial load for television in metro manila to 18
minutes per hour, while for provincial TV stations , commercial load permissible is
maximum for 20 minutes per programme per hour.
In china, a maximum of 9 minutes of ad time per hour of programming is
allowed.
Canada recommends 8 minutes of advertising per hour for childrens
programming and 12 minutes per hour for other programming.
The average for other Asian countries is around 8 minutes of ad time and 2
minutes of programming promotion time, i.e. a total of 10 minutes of break duration
per hour.
With advances in the technology platforms available and the introduction of
addressability the effectiveness of ad-spend will be more transparent. This will further
redefine ad spend patterns among genres, channels and advertising segments.
Addressability will give additional tools to media planners, leading to significant

improvements in media planning. This, in turn is likely to cause radical shifts in

media buying on television, which presently is largely a function of TRPs.
Channels that succeed in convincing buyers of a better value for money by clearly
identifying the right target group will be able to charge a significant premium to
market.
There is a point of view that in more transparent market, with the introduction of
addressability, the duration of advertising will fall even as subscription revenues
increase. However this may not necessarily be the case. As has been seen in the past ,
the more popular channels have been able to garner almost the same quantity of
advertisements (in volume terms) while simultaneously charging a subscription fee,
compared to some of the FTA (free to Air) counterparts. This situation is expected to
continue and, barring short-term dips, the average ad duration per channel is expected
to sustain itself and, in fact, increase in the medium term of an increase in non-prime
time advertising. The fear that compulsory addressability could could lead to a flight
of advertisers to FTA channels, whether FTA or pay, will continue to garner premium
advertisements.

Subscription revenue
TV reaches over 40 percent of the billion people in India, commands the highest
mindshare among consumers and cuts across rural-urban and class divides. Currently,
91 million households own a television, out of which 48 million households are cable
and satellites households, the state-owned terrestrial broadcaster, prasar Bharti,
accounting for the balance 43 million. Though the cable Tv penetration continues to
grow at a brisk pace, the untapped potential is still very significant. Over the DTH and
IPTV are expected to close in on the gap further. It is expected that TV connectivity
in India can reach 134million house holds by 2010, of which as many as 85 million,
or 63.5 percent could be connected through cable and satellite DTH, IPTV or other
non- terrestrial broadcast platforms.
Along with a growth in subscriber volumes, the cable subscription charges (ARPU
per month) too is expected to grow at a pace faster than that of per capita GDP.
At around INR 150, India has one of the lowest ARPUs in the world. In fact, the
ARPU for cable TV has actually fallen in real terms, growing at sub-inflation rates
over the past seven years. An average urban Indian cable connected house hold
receives as many as 100 or more channels for which it pays anywhere between INR
100 to 300 per month, while in certain rural and semi urban areas this number could
be as low as INR 60 per month. The wide disparity in ARPUs between locations and
often between various localities within the same city is not proportionate to the
quality of content or service offering by the distributor but has been guided mostly by
the relative bargaining power of the cable operator with both the consumer and the
broadcaster.
Apart from the low subscription fees, subscriber declaration by cable distributors to
broadcasters in India is one of the lowest in the world, resulting in a grossly
inequitable distribution of subscription revenues. According to an independent
research, operator- broadcaster split in India of subscriber revenue has the worst skew
in the world. It is estimated that the LCO corners 79 percent of the total subscription
revenues for

Content
Broadcasters are beginning to recognize that audiences cannot be taken for granted.
An increase in the number of channels, coupled with a surfeit of me too content on
channels within the same niche has led to the fragmentation in viewership patterns.
Advertisers too, now have the option of lower priced niche channels to reach a more
focused target group, and their advertising spend reflect this.
An increasingly sophisticated Indian audience, now exposed to international fare,
benchmarks TV entertainment with the best when it comes to quality and treatment.
Capturing the mood of the viewer, sports and Hindi film channels have properties.
News channels registered a 100 percent increase in viewership over the last three
years , as have English entertainment stations and channels for children. The success
of quality programming in certain segments indicates the potential for entertainment
channels to move up the content value chain.

BIBLIOGRAPHY
1. WEBSITES
I. ht t p://www.erodov.com/forums/list- tv-channels-india-enjoy/19885.html
II.

www.imacs.in

III.

Asiamedia@international.com

IV.

www.ramojifilmcit y.com

V.

www.etv.com

VI.

www.eenadu.co

VII.

www.onlinenewspa pers.com

VIII.

www.indiantvnet.com

IX.

www.asianmedia.com/ujhk/bfks/media industry

X.

www.oohmedia.com

XI.

searchformedia.net

XII.

explore.oneindia.in/media/television

XIII.

www.erodov.com/forums/list- tv-channels-india.../19885.htm

XIV.

en.wikipedia.org/wiki/List_of_television_stations_in_India

XV.

www.merinews.com/catFull.jsp?articleID=131253

XVI.

www.ibef.org/industr y/mediaentertainment.aspx

XVII.

www.indiantelevision.com/headlines/ y2k1/se p/se p 31.htm

XVIII.

www.indiatvforums.in/forumdispla y. ph p?f=338

XIX.

www. screenindia.com/old/fullstor y. ph p?content_id=2432

XX.

www. Tamindia.com

2. Libraries
1. Oxford library
2. British Library
3. Nasscom Library,Noida
4. Etv Data

3. Books
a. phillip kotler,Kevin lane keller, Abraham