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Micro Economics-Final Presentation- The Report

Micro Economics-Final Presentation- The Report

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Published by: api-3712367 on Oct 14, 2008
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Micro Economics Final Presentation
A Complete Report on the ELECTRONIC MEDIA INDUSTRY in general
and the STAR TV network in particular
Saira Ansari (03)

Dhruvin Shah (20)
Rajiv Siddhartha (21)
Suyash Gupta (09)
Vinit Shah (29)

What exactly is a Medium??

Channels of communication that serve many diverse functions, such as
offering a variety of entertainment with either mass or specialized appeal,
communicating news and information, or displaying advertising messages.

Available types of media include print, electronic, out-of-home, and direct
mail. Print usually refers to newspapers and magazines but also includes
directories, school and church yearbooks and newsletters, and programs at
sporting events and theater presentations. Out-of-home media are designed
almost exclusively to serve only an advertising function, and include
billboards, transit advertising, and posters in public places such as stadiums,
airports, and train stations, as well as flying banners and skywriting. Direct-
mail media are advertisements that are mailed directly to prospects. Any
single form of communication is known as amedium .

How is electronic media different from other forms of media??
Electronic media utilize electronics or electromechanical energy for the end

user) to access the content. This is in contrast to static media (mainly print
media), which are most often created electronically, but don't require
electronics to be accessed by the end user in the printed form. The primary
electronic media sources familiar to the general public are better known as
video recordings and audio recordings .One must note that electronic media
may be in either analog or digital format. Although the term is usually
associated with content recorded on a storage medium, recordings are not
required for things like live broadcasting.

Industry Outlook of the Electronic Media Industry

The Indian entertainment and media (E&M) industry, standing at more than
USD 8 billion, is one of the fastest growing sectors of the Indian economy.
The industry is now at an inflection point, with the earlier phase of growth
having run its course; the sector is now ready to enter a second stage of
growth powered by the twin engines of technology and an enabling
regulatory environment. According to a study by FICCI and PwC it has been
estimated that the industry would grow at a CAGR of 19% to reach Rs.
83,740 crores by 2010 from the present levels of Rs.3,530 crore.

Source: ENIL, 2006.

Easy availability of jobs amongst the young Indians (20-24 yrs) have led to a
higher disposable income, with a major chunk being spent on music, cell
phones, books, food and branded clothes (KSA- Technopak).

So what drives the E&M industry? The buoyant economy has given a fillip
to the consumer's income which in turn increases the disposable income that
the consumer spends on E&M2. This combined with technological
advancement and policy initiatives undertaken by the Indian government has
contributed to the growth of the E&M industry. Factors such as low media
penetration across various socio-economic classes and lower ad spends have
also helped drive the industry. The other key factor is the liberalized foreign
regime, the recent being FDI permitted in the print and radio sectors, while
films, TV and other segments are already open to foreign investments. In
short it can be said that the Indian E&M has everything going for it, be it
technology, digitalization, government support and industry developments.

Source: ENIL, 2006.

The industry needs a consistent and uniform media policy for increasing
investments in all sectors that needs efforts not just by the industry bodies
but also by the government. Investments in technology will call for access to
more institutionalized funds, thus resulting in corporatization, transparent
accounting policies, professionalism and corporate governance. According to
a report by BSE, Annual Market Review 2003, the Indian media business is
no different in terms of exponential potential as compared to its global
counterparts. The difference lies in the structure of the business in India and
that at the global levels. AOL- time, Walt Disney, Bertelsmann, Viacom,

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