India Magazine Industry...
Monday, 12 May 2008
PUBLISHING
India Magazine Industry Thriving, Big Players Moving In
When Conde Nast launched its premium lifestyle magazine Vogue in India last year, it carried a whopping 168 pages of advertisements of a total 400 pages.
Now, the publisher is preparing to launch its luxury men's magazine GQ and expects a similar rush of advertisers in Asia's third-largest economy, where rising incomes and growing literacy are boosting readership and revenues of magazines and newspapers.
From specialist magazines on whiskey, golf and parenting, to regional-language newspapers and financial dailies, new titles are coming thick and fast in one of the few markets in the world where advertising and readership for print media are expanding.
"It's a fast growing economy and with consumption so robust and with incomes rising, it's a fertile ground for the print media," says Vivek Couto, executive director of Hong Kong-based research firm Media Partners Asia. "There is also a buoyancy in print advertising that is encouraging new launches and niche publications in particular."
Print publication advertising revenues in India generated Rs 9,400 crore ($2.4 billion) in 2007, or 48 per cent of all of the country's media advertising revenues, PriceWaterhouseCoopers (PWC) said in a recent report. TV ads generated 41 per
cent.
With the economy having grown at an average rate of 8.75 per cent in the last four years, middle class incomes have risen, boosting demand for niche magazines on health, leisure and finances.
Growing prosperity in rural areas is also encouraging demand for publications in India's more than 20 official regional languages.
Revenue for newspapers and magazines in India, where reading at least one newspaper in the morning is sacrosanct, grew at an average rate of 15 percent in the last four years, higher than anywhere in the world, PWC said. The growth is helped by a young demographic, more working women, rapid urbanisation and smaller households, the report added.
The print publication boom in India contrasts sharply with more mature markets in the West where circulation figures and advertising revenues are down as readers move to the Internet.
Businessworld : Number one Indian business portal with incisive analysis and surveys
http://www.businessworld.in Powered by Joomla! Generated: 17 June, 2008, 13:33 Boom.
India in 2005 allowed 100 per cent foreign investment in non-news publications, keeping the cap for news at 26 per cent.
Early investments included Independent News and Media's 26 per cent stake in newspaper publisher Dainik Jagran, Pearson Plc's 14 per cent in Business Standard newspaper, Henderson Ventures' investment in HT Media and BBC Worldwide's magazine venture with Bennett, Coleman & Co.
More recently, private equity firm Blackstone Group put $150 million in regional publisher Ushodaya Enterprises, Warburg Pincus moved $33 million into the Dainik Group and DE Shaw invested $39 million in Amar Ujala Publications,according to research firm Venture Intelligence.
News Corp, which has a content alliance for The Wall Street Journal with HT Media's business daily, is keen on more launches. Pearson, which has sold its Business Standard stake, is reported to be in talks for a new venture.
"There's huge investor interest in the growth potential, because the segment is still quite under-penetrated," said Atul Phadnis, chief executive of consultancy Media e2e.
Local firms are also seizing the opportunity: Business Standard and Bennett, Coleman's Economic Times have launched Hindi and Gujarati-language editions of their financial dailies. Deccan Chronicle Holdings has launched a business daily to compete with five others, and new regional-language and city papers are hitting the stands nearly every day.
The boom in advertising revenue is not limited just to print. As new media grows and controls are eased in television, these will attract greater investments and advertising revenues. Specialist publications have a better chance of scoring
with advertisers and readers in the increasing clutter, says Phadnis. "Niche publications are almost immediately profitable: Advertising more than makes up for lower subscriptions, and there are easy synergies with other verticals, like
radio or internet."
Glut
But it's not all good news. The large number of players jostling in the market place could lead to a drop off in advertising revenues in the coming years, analysts say. "One of the worries is that publishers are taking ad revenues for granted,"
points out Phadnis.
"Everyone thinks it will keep rising, but as early as 2009 we are going to see a glut in inventory in TV, print and the internet because of so many players. We will see intense price competition, and smaller firms may be forced out," he says.
Investors are also chasing only a handful of large media firms, he adds, nudging up already high valuations: Deccan Chronicle shares trade at 10.3 times forecast earnings, while Jagran Prakashan trades at 19.3 times and Mid-Day Multimedia quotes at 19.7 times forecast earnings. Rising newsprint prices are also bumping up production costs.
Still, Conde Nast expects Vogue will break even in its first or second year of operation compared to an average breakeven period of five or six years in more mature markets, says Alex Kuruvilla, managing director in India, referring to
Europe and the US. "We are optimistic and bullish," he says of the potential. "But also cautious: In this market, you have Businessworld : Number one Indian business portal with incisive analysis and surveys http://www.businessworld.in Powered by Joomla! Generated: 17 June, 2008, 13:33 to be smart."
Attracting the attention of vendors who hawk magazines at traffic lights and getting space on shelves in overcrowded news stands across Mumbai is not easy for new entrants.
"I am already running out of space," says K.B. Singh, pointing to a low wooden bench on a busy sidewalk piled high with dozens of glossy magazines and newspapers. "Where will I put the new ones?"
Report from Reuters
Dushyant Chauhan
Monday, September 15, 2008
Indian Film Industry
To know about Indian Film Industry, Just log on to:
http://www.indianmotionpictures.com/
Official Portal of Film Industry in India
It'll give you information related to new releases. There box office ratings and much more to look at.
Happy surfing :-)
Dushyant Chauhan
http://www.indianmotionpictures.com/
Official Portal of Film Industry in India
It'll give you information related to new releases. There box office ratings and much more to look at.
Happy surfing :-)
Dushyant Chauhan
Indian Entertainment and Media Industry, 15th Mar'08
New Delhi, 15 MARCH, 2008 – The Indian Entertainment and Media (E&M) industry has been experiencing a steady growth supported by the robust performance of the country’s economy, according to the 2008 annual edition of the FICCI –PricewaterhouseCoopers’ Indian Entertainment and Media Industry - Sustaining Growth.
In 2007, the performance of the Indian E&M industry surpassed most other domestic industries. The industry achieved a 17% growth, higher than the projected 15% growth, according to the Report. Its size is estimated at Rs 513 billion in 2007, up from Rs 438 billion in 2006. The sector also attracted record foreign investments at Rs 8.5 billion during the period.
The FICCI-PwC Report has projected an 18% cumulative growth for the industry over the next five years. It is expected to touch Rs 1.157 trillion by 2012. In the last four years, the industry recorded a cumulative growth of 19%.The advertising industry spearheaded the overall performance of the E&M industry with a 38% share. It recorded a 22% growth over the previous year and contributed an estimated Rs 196 billion in 2007 as against Rs 161 billion in 2006.
In the last four years, from 2004 to 2007, the advertising industry recorded a cumulative growth of 20% on an overall basis.In 2007, the E&M industry saw the entry of new players and existing players expanding by diversifying into new segments, spreading their presence across value chains, broadening their horizons by increasing the geographic presence.Globally, the migration to digital formats is gaining momentum, which will soon be a reality in India. Distribution of E&M content over digital and mobile platforms will gain popularity.“Digitalization is the future for most segments and companies have to adopt this revolution with appropriate infrastructure, relevant business models, and technology upgrades along with associated costs. The pace of adoption will determine industry dynamics.” said Timmy Kandhari, Executive Director and Leader, TICE (Technology, Infocomm and Entertainment & Media) Practice, PricewaterhouseCoopers in India, while commenting on the future outlook for the industry.
Key findings of the report –
- OverallCurrent size in 2007 – Rs 513 billion; Rs 1,157 billion projected for 2012Growth in 2007 over 2006 – 17%; 18% CAGR projected for 2008-12 Continuing with the trend of the previous years, the emergence of media conglomerates further intensified in 2007. Several media groups expanded beyond their traditional domains to leverage on the synergies in advertising, thus, aiming to have a presence across all segments of the Indian E&M industry.
- In 2007, foreign investments in the E&M sector reached a record high of $211 million, approximately Rs 8.5 billion. This was a result of a clutch of investment deals announced in 2006 and before.
- The advertising industry is experiencing a paradigm shift with digitally interactive mediums gaining popularity among the consumers. Internet and mobile are the two keys enablers for the digitally interactive mediums. Internet advertising is estimated at Rs 4.2 billion in 2008, growing at 32% CAGR. It is expected to touch Rs 11 billion in 2012.
- The E&M industry saw several deals in 2007 across various segments. During the period, television segment generated the most interest among investors.
- In 2007, the trend continued towards increased convergence between E&M and telecom industries. The most notable of these trends were witnessed in the mobile music segment. Other initiatives included newspaper industry going online with ‘e-papers’ and mobile with ‘m-papers’. Digital cinema continued to make significant progress in the film industry. There was a sizeable increase in the sales of online and mobile tickets. Most television broadcasters today have forayed into online and mobile portals.
Television Industry
Current size in 2007 – Rs 226 billion; Rs 600 billion projected for 2012Growth in 2007 over 2006 – 18%; 12.22% CAGR projected for 2008-12
Television industry is undergoing a transformation with digital distribution networks. More and more, customers are lapping up the DTH network. The DTH subscription is projected to grow at 44% CAGR over the next five years.
CAS was made mandatory from January 1, 2007. However, there was a lukewarm response to this from customers during the year.
High growth in advertising revenues and emergence of alternate revenue streams, especially SMS, is driving the launch of several channels, especially in the ‘general entertainment’ genre.
Print Media
Current size in 2007 – Rs 149 billion; Rs 281 billion projected for 2012 Growth in 2007 over 2006 – 16%; 14% CAGR for 2008-12 Launch of magazines dominated the print industry in 2007 due to favorable FDI policies and manifested growth potential, especially in the high-end niche genres.Newspaper publishing was dominated with increased number of regional publications.
Filmed Entertainment
Current size in 2007 – Rs 96 billion; Rs. 176 billion projected for 2012 Growth in 2007 over 2006 – 14%; 13%CAGR for 2008-12
Emergence of various revenue streams beyond the traditional box office is changing the face of the Indian filmed entertainment industry, such as television, mobile, Internet, home video, merchandise, music, re-make rights, and several branded entertainment opportunities.
Advent of ‘Studio Model’ is further de-risking the business; Hollywood studios, such as, Sony Pictures, Viacom and Fox have evinced interests in India during 2007.
Entry of players like Moser Baer is changing the Indian model for Home Video from rental to a sell-through.
Talent is becoming ‘commoditized’. There was a huge rush in 2007 to lock-in talent for a long-term period.
Radio
Current size in 2007 – Rs 6.2 billion; Rs 18 billion projected for 2012 Growth in 2007 over 2006 – 24%; 24% CAGR for 2008-12
Over 150 radio channels became operational in 2007; thus, increasing the spread of radio.
Phase-III plans have been drawn up which recommended additional 560 radio stations in the next five years. The Telecom Regulatory Authority of India has recommended to the Government for allowing news on radio and increasing the FDI limit, among other provisions; these recommendations are expected to make radio more favorable with advertisers.
Key Data
Outlook for the next 5 years
In the next five years, there will be a significant rise in online digital streaming, digital movie/TV downloads, video-on-demand, music downloads from the Internet, music downloads to wireless phones, online advertising, online video games, and wireless video games. Digitization will help reduce costs for content and delivery in the long run, and thereby, shift the emphasis to quality, said Mr Kandhari.
In 2007, the performance of the Indian E&M industry surpassed most other domestic industries. The industry achieved a 17% growth, higher than the projected 15% growth, according to the Report. Its size is estimated at Rs 513 billion in 2007, up from Rs 438 billion in 2006. The sector also attracted record foreign investments at Rs 8.5 billion during the period.
The FICCI-PwC Report has projected an 18% cumulative growth for the industry over the next five years. It is expected to touch Rs 1.157 trillion by 2012. In the last four years, the industry recorded a cumulative growth of 19%.The advertising industry spearheaded the overall performance of the E&M industry with a 38% share. It recorded a 22% growth over the previous year and contributed an estimated Rs 196 billion in 2007 as against Rs 161 billion in 2006.
In the last four years, from 2004 to 2007, the advertising industry recorded a cumulative growth of 20% on an overall basis.In 2007, the E&M industry saw the entry of new players and existing players expanding by diversifying into new segments, spreading their presence across value chains, broadening their horizons by increasing the geographic presence.Globally, the migration to digital formats is gaining momentum, which will soon be a reality in India. Distribution of E&M content over digital and mobile platforms will gain popularity.“Digitalization is the future for most segments and companies have to adopt this revolution with appropriate infrastructure, relevant business models, and technology upgrades along with associated costs. The pace of adoption will determine industry dynamics.” said Timmy Kandhari, Executive Director and Leader, TICE (Technology, Infocomm and Entertainment & Media) Practice, PricewaterhouseCoopers in India, while commenting on the future outlook for the industry.
Key findings of the report –
- OverallCurrent size in 2007 – Rs 513 billion; Rs 1,157 billion projected for 2012Growth in 2007 over 2006 – 17%; 18% CAGR projected for 2008-12 Continuing with the trend of the previous years, the emergence of media conglomerates further intensified in 2007. Several media groups expanded beyond their traditional domains to leverage on the synergies in advertising, thus, aiming to have a presence across all segments of the Indian E&M industry.
- In 2007, foreign investments in the E&M sector reached a record high of $211 million, approximately Rs 8.5 billion. This was a result of a clutch of investment deals announced in 2006 and before.
- The advertising industry is experiencing a paradigm shift with digitally interactive mediums gaining popularity among the consumers. Internet and mobile are the two keys enablers for the digitally interactive mediums. Internet advertising is estimated at Rs 4.2 billion in 2008, growing at 32% CAGR. It is expected to touch Rs 11 billion in 2012.
- The E&M industry saw several deals in 2007 across various segments. During the period, television segment generated the most interest among investors.
- In 2007, the trend continued towards increased convergence between E&M and telecom industries. The most notable of these trends were witnessed in the mobile music segment. Other initiatives included newspaper industry going online with ‘e-papers’ and mobile with ‘m-papers’. Digital cinema continued to make significant progress in the film industry. There was a sizeable increase in the sales of online and mobile tickets. Most television broadcasters today have forayed into online and mobile portals.
Television Industry
Current size in 2007 – Rs 226 billion; Rs 600 billion projected for 2012Growth in 2007 over 2006 – 18%; 12.22% CAGR projected for 2008-12
Television industry is undergoing a transformation with digital distribution networks. More and more, customers are lapping up the DTH network. The DTH subscription is projected to grow at 44% CAGR over the next five years.
CAS was made mandatory from January 1, 2007. However, there was a lukewarm response to this from customers during the year.
High growth in advertising revenues and emergence of alternate revenue streams, especially SMS, is driving the launch of several channels, especially in the ‘general entertainment’ genre.
Print Media
Current size in 2007 – Rs 149 billion; Rs 281 billion projected for 2012 Growth in 2007 over 2006 – 16%; 14% CAGR for 2008-12 Launch of magazines dominated the print industry in 2007 due to favorable FDI policies and manifested growth potential, especially in the high-end niche genres.Newspaper publishing was dominated with increased number of regional publications.
Filmed Entertainment
Current size in 2007 – Rs 96 billion; Rs. 176 billion projected for 2012 Growth in 2007 over 2006 – 14%; 13%CAGR for 2008-12
Emergence of various revenue streams beyond the traditional box office is changing the face of the Indian filmed entertainment industry, such as television, mobile, Internet, home video, merchandise, music, re-make rights, and several branded entertainment opportunities.
Advent of ‘Studio Model’ is further de-risking the business; Hollywood studios, such as, Sony Pictures, Viacom and Fox have evinced interests in India during 2007.
Entry of players like Moser Baer is changing the Indian model for Home Video from rental to a sell-through.
Talent is becoming ‘commoditized’. There was a huge rush in 2007 to lock-in talent for a long-term period.
Radio
Current size in 2007 – Rs 6.2 billion; Rs 18 billion projected for 2012 Growth in 2007 over 2006 – 24%; 24% CAGR for 2008-12
Over 150 radio channels became operational in 2007; thus, increasing the spread of radio.
Phase-III plans have been drawn up which recommended additional 560 radio stations in the next five years. The Telecom Regulatory Authority of India has recommended to the Government for allowing news on radio and increasing the FDI limit, among other provisions; these recommendations are expected to make radio more favorable with advertisers.
Key Data
Outlook for the next 5 years
In the next five years, there will be a significant rise in online digital streaming, digital movie/TV downloads, video-on-demand, music downloads from the Internet, music downloads to wireless phones, online advertising, online video games, and wireless video games. Digitization will help reduce costs for content and delivery in the long run, and thereby, shift the emphasis to quality, said Mr Kandhari.
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