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The Times of India: Emerging Strategies For Growth
The Times of India: Emerging Strategies For Growth
On January 22, 2004, Vineet Jain, managing director of the Times of India, entered his
office smiling. He had just signed a joint operating agreement with Dow Jones & Co. to
publish the Wall Street Journal for India. The Journal would be published 5 days a week,
with Dow Jones owning 26% – the maximum allowed by foreign ownership laws – and the
Times of India, owning 74% of the new venture. The content would focus on Indian readers
and tap into the global resources of the Wall Street Journal. Additionally, the editor named
was Suman Dubey, a nationally recognized Indian journalist.
This marked a major accomplishment for the both the Times of India and the country
as a whole. The presence of a customized Wall Street Journal for India validated its growth
and economic importance worldwide, a sentiment noted by Peter R. Kann, chairman and CEO
of Dow Jones, who said in a press release: “India is a vibrant and growing part of the global
economy, and we look forward to playing an increased role in charting – and spurring – that
growth.” Jain himself echoed these comments, stating:
The joint venture comes at a moment when India is poised to become a global player
across a range of industries: from software outsourcing and entertainment, to
pharmaceuticals, textiles and automobile components. As Indian companies, investors
and consumers begin to think beyond the geographical boundaries, the need for global
information and perspective will grow. We believe that the venture fits in perfectly
with the emerging needs of the time.
Critiques of Diversification
Jain has encountered much disapproval for his rapid growth. Critics argue that the
Times of India uses its pages for too much blatant cross-promotion of its media products,
which in turn diminishes its journalistic credibility. The paper published articles and used
extensive editorial space touting their other media holdings, often ignoring stories pertaining
to their competition. In 2003, the paper launched “edvotorials”, sections where public
relations firms and companies can place content which, while they are advertisements, appear
as news, save for a small disclaimer at the article’s end.
Press in India and around the world have picked up on the recent practices, which has
cast a cloud over the integrity of the newspaper. The Times defends its methods with
transparency, noting that paying to be featured in the newspaper is a practice they have never
claimed to hide. Moreover, other media companies have looked at the soaring profits posted
by Bennett, Coleman and considered replicating their methods. This has frightened many
journalists, who have actively campaigned against these practices.
The backlash against the Times of India has been a continued concern of management.
Ardent opponents have called for boycotts of all Bennett, Coleman products, prompting a
protest campaign on a website http://techrose.org/justsayno, and calling the company the
“Microsoft of Indian media – too penetrating, too rich, too arrogant, and too powerful.”
The Times of India sees this diversification and business development in a different
light, an opportunity to meet a growing segment – the swelling ranks of the urban Indian
middle-class. “[Combining news and advertising is] a model the rest of the media industry
could follow and benefit from,” notes the Times Internet CEO Mahendra Swarup. Jain and his
team have made the Times a destination, the must-read paper to begin the morning, not only
for the current national, world, and business events, but also for the society gossip. And that
combination sells papers. Jain noted:
Today's readers don't just expect news about politics or society or business issues
anymore. They also expect an editorial line on contemporary issues like fashion,
entertainment, and lifestyle. So instead of sticking to the traditional age-old methods
of reporting on these categories, why not get the advertiser to give the news to you and
pay for it as well! It's a win-win – the reader benefits and so does the advertiser.