Performance of Indian Print Media Industry in 2008

The Indian print media industry has grown at a healthy rate of 13.3% over the last four years. In 2008, however, the economic slowdown resulted in the Indian print media industry recording a growth of only 7.5% over the previous year. Newspaper publishing, which constitutes around 87% of the segment, grew at 7% in 2008, whereas the magazine publishing, which contributes the balance 13% of the segment, grew at a higher rate of 10.6%. On an overall basis, the print media industry stood at Rs.162 billion in 2008, up from Rs. 151 billion in 2007. The print advertising segment, which constitutes 64% of the print segment, grew by 10.1% in 2008 over 2007 and stood at an estimated Rs. 103.5 billion in 2008. Circulation revenues for newspapers grew by 3.1% in 2008 over 2007 and stood at an estimated Rs. 58.3 billion in 2008. The growth in circulation was

contributed more by an increase in the number of units circulated, There was marginal growth recorded in the circulation price in 2008 from 2007. The size of the magazine publishing industry was estimated at Rs. 21 billion in 2008 which grew from Rs. 19 billion in 2007, registering a growth of 10.6%. The magazine advertising segment, which constitutes 13% of the segment, grew by 10.6% in 2008

Impact of the global economic downturn on the Indian print media industry
x The slowdown impacted print media more than other segments of the Indian E&M industry. This was largely due to the fact that big spenders on television such as FMCGs and Telecom were not impacted as much by the recession as much as large print spenders were. As the impact of slowdown began to be felt, ad spends dried up affecting the health of the print industry in a drastic manner. In the last quarter of 2008, spends of the key print advertisers in the

Table 3.1: Growth of Indian Print Media Industry 2004-2008 In Rs. billion Newspaper Publishing % Change Magazine Publishing % Change Total % Change
Source: Industry estimates and PwC analysis

2004 86.5 11.8 98.3

2005 94.6 9.4% 13.5 14.5% 108.1 10.0%

2006 112.1 18.5% 16.6 23.0% 128.7 19.1%

2007 131.5 17.3% 19.0 14.9% 150.5 17.0%

2008 140.7 7.0% 21.0 10.6% 161.8 7.5%

CAGR 2004 - 08 12.9% 15.7% 13.3%

Table 3.2: Growth of Indian Print Media Industry 2004-2008 In Rs. billion Print Indsurty Advertising % Change Print Indusrty Circulation % Change Total % Change
Source: Industry estimates and PwC analysis

2004 54.4 43.9 98.3

2005 62.7 15.3% 45.4 3.4% 108.1 10.0%

2006 78.0 24.4% 50.7 11.7% 128.7 19.1%

2007 94.0 20.5% 56.5 11.5% 150.5 17.0%

2008 103.5 10.1% 58.3 3.1% 161.8 7.5%

CAGR 2004 - 08 17.4%

7.4%

13.3%

50

PricewaterhouseCooopers I Indian entertainment and media outlook 2009

and Jagran put on hold its expansion plans for new editions and launches in new markets. well- x x Indian Print Media Industry 51 . Newspapers and publications have also reduced the number of pages to cope with the recession. the Business Standard decided to wind up its Gujarati edition. cancer and intensive care. Mint the English business daily from HT Media launched new editions in Kolkata and Chennai. Hearst Corporation’s Harper’s Bazaar a fashion and beauty magazine in partnership with India Today The relaunch of Delhi Press’ The Caravan a fortnightly magazine that covers politics. imported or indigenous. x Another issue which has added to the woes of the newspaper industry is rising newsprint costs. The price of newsprint. which has a tie-up with International Herald Tribune. while new entrants have delayed or shelved launch plans.000 per tonne in April 2008. Lokmat was launched in Goa. touched $1. Nasik and Nagpur. culture. The print media industry has beenhence resorting to downsizing. The most notable of the magazine launched was that of Forbes India in May 2009 by Network18 and Forbes Media combine. while Jagran Prakashan has launched I-Next and City Plus papers. It is available in 12 cities Pathfinder Publishing’s maiden title Career’s 360 a monthly publication from Pathfinder. Many newspapers/publications decided to shut down certain offices/editions. Despite having the stable government.categories of realty. This hit margins of print players very significantly. neurology. banking/finance. For example. Images Group’s FNL and Salon and Living etc. x x traveled and identify themselves as global citizens. Upward movement in newsprint prices may put a further pressure on margins. These include: RPG Group’s ‘Open’ a weekly magazine aimed at addressing the needs of evolved Indian readers who are well-informed. The publication announced plans for launch of its 11th edition in 2009 in Mumbai followed by editions in Aurangabad. and this after a 23 per cent increase over the previous four months that took prices to $760 a tonne in March 2008. Newspaper publishers also launched new editions. risks abound with continued slowdown in the economy. rose over 60 per cent over a period of six months. newsprint prices. There were several niche titles that were launched in 2008. arts and literature. though most were in the early part of 2008 before the impact of the global slowdown was felt. which typically account for 50 to 60 per cent of production costs. x x x Key Developments in the Indian print media industry in 2008 New publications launched x Magazine publishing segment saw the maximum activity with launch of several new titles. Dainik Bhaskar launched the 12th edition of its Hindi financial daily Business Bhaskar. while Financial Chronicle. Marathi daily Pudhari continued to expand its footprint across Maharashtra inspite of the slowdown. was launched in Delhi. Magazines have discontinued supplements earlier distributed free of cost with the main product. as ad revenues have slowed down dramatically. Thus. Springer India has 12 proposals pending with the central government for the launch of Indian editions of its specialist international publications in areas such as orthopedic. an Indian edition of international homes magazine Gill India Communications’ What Women Want a woman’s magazine for women aged between 20 and 45 years and ‘Lifestyle Living’ a lifestyle magazine dedicated to those with a creative and edgy lifestyle. Regional publications continued their growth momentum. IT/telecom and durables nosedived and some of these categories totally stopped spending. which may dry advertisement spending. focusing on the career for the people between the age of 17-35 Technology Review a technology magazine launched in India jointly by MIT’s Technology Review magazine and CyberMedia India Ltd.

HT Media. publisher of national English newspaper Hindustan Times and regional Hindi newspaper Hindustan.com.New revenue streams for publishers x Print media companies have started diversifying their revenue streams and have been entering related business sectors to offset the lower margins. a Gujarati daily was the only notable deal in 2008. Infomedia18. The aforementioned newspapers would be brought out by Wall Street Journal India Publishing Pvt Ltd. These concessions were announced in Feb 2009 in view of the current economic slowdown and the high newsprint cost which spiralled close to 25%. Key Government Initiatives x In December 2008. Additionally. the English business daily of the HT Media Group partnered with business television leader CNBC-TV18. publishers of ragional Hindi newspaper Dainik Jagran. Similarly. USA. x x x x M&A and Investments in Print Media in 2008 Not much significant deal activity occurred in 2008 in the print media industry in 2008. the Ministry of Information & Broadcasting has for the first time given approval for the publication of the facsimile edition of foreign newspapers by allowing the publication of ‘The Wall Street Journal’ and ‘The Wall Street Journal Asia’ in India. and also entered the high-end magazine and catalogue printing segments. x x During the year. raised up to Rs 1 billion through a rights issue in 2008. a 100% percent slab is now allowed for special interest publications. 52 PricewaterhouseCooopers I Indian entertainment and media outlook 2009 . Government has announced customs duty exemption on newsprint for the newspaper and magazine publishing industry. Mint. to be allowed 26 per cent FDI as long as all key executives and editorial staff are Indians.. Bennett Coleman acquiring a 12% stake in Sandesh. launched an outof-home (OOH) media and event management company. HT Media had earlier diversified into radio with the launch of Fever104 FM radio channel and also launched an English business newspaper Mint. Recent examples include : Jagran Prakashan. Deccan Chronicle ventured into IPL by investing in a franchisee Deccan Chargers in 2008. launched a job portal called shine. a wholly owned subsidiary of Dow Jones and Company Inc. the Indian Government had unveiled a set of guidelines for allowing publication of Indian editions of foreign news and current affairs magazines. Deccan Chronicle also launched Odyssey Bookstores and various assorted internet ventures. a TV18-owned publishing company.

71 44.69 140.36 52.05 54.43 44.97 58.02 46.51 106.77 15.65 136.74 267.37 296.4: Top 10 Hindi Dailies ( All Readership Figures in Lacs) Publication The Times Of India Hindustan Times The Hindu The Telegraph Deccan Chronicle The Economic Times Mid-Day (Eng) The New Indian Express Mumbai Mirror DNA Source: IRS 2009.96 59.41 63.66 15.56 53.17 15.46 55.01 Indian Print Media Industry 53 .58 60.61 59.68 19.Table No.57 319.73 66.84 49.64 19.15 56.91 13.5: Top Ten Magazines (All Readership Figures in Lacs) Periodicity Magazines Readership 2008 R1 Fortnightlies Weeklies Weeklies Fortnightly Weeklies Weeklies Fortnightly Monthly Weeklies Monthly Source: IRS 2009.11 17.18 27. Round 1 2008 R1 565.73 28.70 51.50 286.13 251.41 53. 3.45 73.83 15.82 68.77 74.89 Publication Dainik Jagaran Dainik Bhaskar Amar Ujala Hindustan Rajasthan Patrika Punjab Kesri Aj Navbharat Times Prabhat Khabar Nava Bharat (Mah/Chh) Source: IRS 2009.83 2009 R1 545.19 Hindi Tamil Tamil Malayalam English Hindi Hindi Hindi Tamil Hindi Saras Salil Kumudam Kungumam Vanitha India Today India Today Grih Shobha Meri Saheli Ananda Vikatan Cricket Samrat 97. Round 1 2008 R1 136.23 54.51 30.11 2009 R1 133.57 111.38 30.28 20.3: Top 10 English Dailies ( All Readership Figures in Lacs) Table No. 3. Round 1 Language 2009 R1 73.77 Table No.45 59.69 49.47 63.45 49.83 335.39 74. 3.57 14.65 66.14 51.75 59.

the medium is secondary to the brand. but newspapers need to develop strategies for monetising their content and intellectual capital. The rapid adoption of the Internet and mobile technology have created a market for mobile devices – particularly for the ‘net generation’. Use of video in online news sites gives the feel of a ‘TV-like’ experience (consumers’ favourite medium for news) giving newspaper brands the opportunity to secure online audiences beyond their print readership and into the television audience more generally. Though the devices give immediate access to breaking news and information. Indeed. However. Our consumer research indicates that consumers are willing to pay for this content. The overall shift from print to online will continue however. targeted and relevant information. those under 35 in age. Our research shows that: 54 PricewaterhouseCooopers I Indian entertainment and media outlook 2009 . This creates both an opportunity for advertisers to reach their consumers and for newspapers to develop ‘hyper-local’ or ‘local-local’ sites addressing content at the neighborhood and suburban level. so major newspaper brands with large loyal customer bases will be high on the spending plans of advertisers. print remains the largest source of revenue generation for newspaper publishers. For advertisers. Newspapers have a long-term future and will coexist with other media. but there is always a market for high value online content in specific topics. Consumers place high value on the deep insight and analysis provided by journalists over and above general or breaking news stories. A growing number of people are migrating from the printed page to the Internet for information and entertainment. Newspaper publishers have responded to the economic downturn by increasing their focus on cost reduction. Niche audiences continue to demand specialised. However this is unlikely to be either in the formats or volumes seen today and there will some casualties and losses of well-known papers along the way. Some newspapers have addressed this issue. they are low on the list of preferences for accessing information due to the difficulty of reading content on the devices. but many have not.Outlook for Newspaper Publishing in the Digital Age The newspaper publishing industry is facing a structural challenge in which paid titles have seen a long-term decline in circulation volume while advertisers have been moving from newspapers to online channels and into new formats. giving them the opportunity to both lead and follow audiences as they migrate online and into the use of portable electronic media. So what should consumer magazine publishers and media buyers do to succeed in the digital age? We have looked at how the behaviour of consumers is shifting. and structural changes are now being exacerbated and accelerated by the global economic downturn. Source : PwC’s Outlook for Newspaper Publishing in the Digital Age Outlook for Magazine Publishing in the Digital Age The global publishing industry is undergoing major changes. This is particularly prevalent in the USA. and how the industry leaders are responding. How can newspaper publishers successfully address these challenges? Our research shows that: ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ Although there is a huge potential for growth online. with the core principles of deep analysis and trusted editorial. Many are also using multiple platforms and new technologies as channels for content distribution in order to ฀ ฀ ฀ reach their audiences. These trends are forecast to continue. who attach high values to a publishing company using sustainable production methods. and will continue to be so for some time. access to mass markets remains key. so newspaper publishers must continue to develop innovative advertising packages combining both print and online to secure the advertising spend for their brands. Consumers see breaking news and general interest news as commodities. many have still to fully review their existing business models to take full advantage of the innovation in the marketplace and the demands of consumers. Newspapers have been able to earn their readers’ trust and loyalty. Sustainability has increased in importance both for the newspaper publishers and for their readers.

Both magazine publishers and media buyers will also have to invest in developing effective consumer-tracking and measurement systems. Traditional publishers typically organise their operations around different media types. our research suggests that they are not prepared to pay more than half the sum they would pay for a printed magazine. they may need to integrate their operations and hire employees with the right blend of creative and technological skills. we see Eastern European publishers continuing to build up their print portfolios. A number of magazine publishers have responded to the digital revolution by reshuffling their portfolios through acquisitions. only a few magazine publishers seem to have developed business models which make these activities self-supporting. ฀ ฀ ฀ ฀ ฀ The magazine publishers that have proved most successful in entering the digital space are those that have been able to leverage strong brands across multiple media platforms and generate revenues from online advertising. com and Google) have been very successful. Lack of robust consumer metrics has exposed companies in both sectors to competition from new entrants. So any magazine publisher which launches digital content connected to its brands risks cannibalising subscription and circulation revenues from its traditional print magazines. whereas mainland European publishers expect to generate only 10% of their revenues from online activities. This reflects consumers’ willingness to pay for digital content in these markets. However. consumers expect to pay more for printed content than for content distributed electronically. once these devices are commercially available.฀ ฀ ฀ ฀ ฀ ฀ Most consumers still prefer to read hard copies of magazines. However. The digital age could have equally significant consequences for advertising agencies. However. Britain and in North America. If they are to ensure that they are ready to accommodate the changing preferences of consumers. As progress in developing digital media is being made in mainland Europe. If these publishers are to stay close to their readers. there is no evidence thus far that consumer magazine print products have been cannibalized by the presence of digital versions of the magazine on the title’s website. or by forming strategic alliances to get access to the skills they need. smaller publishers in Britain and in North America are far ahead of their mainland European counterparts in digital investment and development. A significant number of consumers also express interest in using new digital devices to read digital content. many consumers see digital-only content as a substitute for printed content. British and North American magazine publishers expect to generate as much as 20% of their total revenues from digital platforms within the next five years. whereas consumers use multiple channels. disposals and new launches. In short. Moreover. Source : PwC’s Outlook for Magazine Publishing in the Digital Age Indian Print Media Industry 55 . not PDFs or other static formats which can be viewed online) – and younger consumers would rather access content digitally. but many are also interested in reading digital content (by which we mean interactive materials. Indeed. they have recognized that digital media require different business models from those they have developed to support their traditional print operations. Most magazine publishers may also have to make major organizational changes. but many still need to build truly multi-functional teams capable of offering multimedia solutions rather than focusing on a particular medium. as this relatively new industry develops. This fear may therefore be groundless. search-engine marketing and e-commerce. The traditional agencies have already acquired new skills. According to third party research. they will need to consider their future investment plans (and the potential impact on their financial situation) very carefully. some of which (like auFeminin.

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