TEZPUR UNIVERSITY

CENTRE FOR
OPEN AND DISTANCE LEARNING

Self Learning Material

M A in Mass Communication
MEDIA MANAGEMENT
(MMC 203)

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CENTRE FOR OPEN AND DISTANCE LEARNING

TEZPUR UNIVERSITY: NAPAAM: SONITPUR

SELF-LEARNING MATERIAL

MEDIA MANAGEMENT

MMC 203

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SELF-LEARNING MATERIAL

Course Code: MMC 203

Course Title: MEDIA MANAGEMENT

Course Advisors
Dr Abhijit Bora
Uttam Kr Pegu
A.NagrajProgramme
Coordinator/s

Uttam Kr Pegu

Course Contributors
P.Anbarasan, Associate Professor, Dept of MCJ, Tezpur University

Course Author

Anjuman Borah
Abhijit Borah
Ankuran Dutta
Uttam Pegu

Course Editor/s
Prof. CHSN Murthy, Dept of MCJ, Tezpur University

March 2012
@ CODL, Tezpur University

Published by
Director, Centre for Open and Distance Learning (CODL),
on behalf of Tezpur University.

The material provided here can be freely accessed but cannot be reproduced or reprinted for
commercial purposes.

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COURSE INTRODUCTION

COURSE 1: MEDIA LAW AND ETHICS

UNIT-1 : INDIAN CONSTITUTION
UNIT-2 : PRESS LAWS
UNIT-3 : GLOBAL MEDIA ETHIC
UNIT-4 : MEDIA ETHICS
UNIT-5 : ETHICS AND LAW

COURSE 2: RADIO BROADCASTING

UNIT-1 : EVOLUTION OF RADIO
UNIT-2 : CHARACTERISTICS OF RADIO
UNIT-3 : TECHNOLOGY OF RADIO BROADCASTING
UNIT-4 : FORMATS OF RADIO BROADCASTING
UNIT-5 : ORGANISATIONAL STRUCTURE

COURSE 3: MEDIA MANAGEMENT

UNIT-1 : OVERVIEW OF MEDIA ENVIRONMENT
UNIT-2 : INDIAN MEDIA SCENE
UNIT-3 : NEWSPAPER MANAGEMENT
UNIT-4 : BROADCAST MANAGEMENT
UNIT-5 : ADVERTISING INDUSTRY
UNIT-6 : ENTREPRENEURSHIP

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MMC 203: MEDIA MANAGEMENT

UNIT-1: OVERVIEW OF MEDIA ENVIRONMENT

UNIT STRUCTURE
1.0 OBJECTIVES
1.1 INTRODUCTION
1.2 MEDIA AS AN INDUSTRY AND PROFESSION
1.3 OVERVIEW OF MEDIA ENVIRONMENT IN INDIA
1.3.1 TV
1.3.2 PRINT
1.3.3 FILMS
1.3.4 RADIO
1.3.5 NEW MEDIA
1.4 MANAGEMENT PRINCIPLES
1.5 MEDIA OWNERSHIP PATTERNS
1.5.1 GOVERNMENT/PUBLIC/STATE MEDIA
1.5.2 PRIVATE-OWNED MEDIA
1.5.3 COMMUNITY MEDIA
1.5.4 MEDIA DIRECTLY OWNED BY POLITICAL PARTIES
1.6 MEDIA ORGANIZATION STRUCTURE
1.7 SUMMING UP
1.8 RECOMMENDED READINGS
1.9 PROBABLE QUESTIONS

1.0 OBJECTIVES
 To introduce media as an industry and profession
 To discuss the media environment in India
 To explain the principles of management
 To discuss about the various media ownership papperns
 To explain the structure of media organizations
1.1 INTRODUCTION
This unit has been designed to enable learners to get a basic understanding of the media environment
in India. A reading of this unit would give them an idea about the nature and size of the media industry
in general and specifically about the individual media segments like TV, radio, films and new media.
The unit also discusses about management principles which a media manager needs to be familiar
with. The learners will also be able to understand about the different ownership patterns of media
organization and the organizational structure of media organizations.
1.2 MEDIA AS AN INDUSTRY AND PROFESSION
The Media and Entertainment Industry (M&E) is one of the fastest growing sectors in the world. It
comprises the creation, aggregation, and distribution of media content including news and
information, advertising, and entertainment through various media channels and platforms.

The technological advancements in the broadcasting and publishing segments and the changing
consumption patterns of the media consumers had enabled the industry to witness unprecedented
growth during the last decade. Rise in the purchasing power of the middle class population owing to

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the strong economic development in most countries has led to upsurge in their media consumption
habits ushering in such growth.

The worldwide financial crisis did lead to a slowdown in the past few years. However, it is now fast
recovering from the storm and it is expected that increasing disposable income and an improved
economy would boost demand for entertainment products leading to increase in advertising spend by
corporations.

Lucintel, a leading global management consulting and market research firm, in its report Global
Media and Entertainment Industry 2012–2017: Industry Trend, Profit, and Forecast Analysis has
forecasted that the global media and entertainment industry is poised to reach approximately US
$1,289 billion in 2017 with a Compound Annual Growth Rate (CAGR) of 5% during 2012–2017.

Fuelled by such growth, the media industry today has reached a level where it has been creating jobs
opportunities for a huge number of people. It is considered as one of the most glamorous and lucrative
career options. The media profession presents one with opportunity to work in challenging situations
which attracts those who do not want to make a career in conventional fields.

Media and Entertainment is an ever growing area, evolving continuously and opening up new
opportunities everyday. Within each broad field, wide arrays of career paths exist. For example,
entertainment could mean film or television or radio or a multiplicity of other careers. Journalism
could lead one to work for a newspaper, a website or for a news station on television. These sub-
industries and sub-fields further subsume more sub-industries and sub-fields within.

The opportunities are quite literally endless but at the same time extremely demanding. One has to
work under the tight pressure of deadlines and to deliver only the best. The media environment is
highly competitive and constantly reeling under the strain of generating higher TRP or performing
well at the box office.
1.3 OVERVIEW OF MEDIA ENVIRONMENT IN INDIA
India is one of the largest media consuming markets in the world with Entertainment and Media being
one of the fastest growing sectors in the economy. A number of factors are responsible for such
growth of the E&M industry. It includes strong economic growth, rising income and literacy levels,
higher aspiration levels, widening base of the middle class income group, corporatization of the film
industry and technological changes amongst others. The sympathetic approach of the government
towards foreign investment in E&M sector is also considered to be an important factor leading to such
growth.

According to the FICCI-KPMG Indian Media and Entertainment Industry Report 2012, the Indian
E&M industry grew from INR 652 billion in 2010 to INR 728 billion in 2011, registering an overall
growth of 12 percent. The industry is estimated to achieve a growth of 13 percent in 2012 to touch
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INR 823 billion and is projected to grow at a CAGR of 14.9 percent to reach INR 1,457 billion by
2016.

The Indian M&E industry has not just grown but also evolved greatly over the last decade. This
evolution has been in terms of shifting consumer preferences towards niche content and digital
delivery platforms, new and innovative business models, cut-throat competition owing to the entry of a
number of new players, and changing media regulations.

The E&M industry can be divided into different segment like television, print, films, radio, music and
internet. Out of home advertising (OOH) and live entertainment are too gaining importance. Let us
now discuss in detail about the four most important segments – Television, Films, radio and the new
media.
1.3.1 TV
Television is a very popular medium and has a great power to influence people, their beliefs
and their opinions. Being a visual medium, its impact transcends the social and educational
background of its viewers and therefore gets the highest of advertising spends amongst all the
advertising mediums. In fact, television is the largest medium for media delivery in India in
terms of revenue, representing around 45 percent of the total media industry. The television
penetration in India at approximately 60 percent of total households and is the third largest TV
market after USA and China with 146 million television households and is estimated to rise to
approximately 70 percent by 2016. Cable and Satelite (C&S) penetration of television
households has reached 119 million which is 81 percent of the television households in the
country, with DTH driving a significant part of the growth. The over-all television industry
was estimated to be INR 329 billion in 2011, and is expected to grow at a CAGR of 17 percent
over 2011-16, to reach INR 735 billion in 2016.

According to the Pitch Madison report 2012, the total number of TV channels in India was
estimated to be 623 in 2011, and many more channels are awaiting approval for broadcast.
There has been a significant increase in demand for satellite bandwidth, with the introduction
of HD channels, DTH expansion, and new channel launches.
1.3.2 PRINT
The Indian print Industry has undergone revolutionary changes in the past two decades in a
bid to survive the onslaught of the electronic and digital media. In fact it has not just survived,
but India continues to be one of the few markets where print is still growing when globally,
with some minor exceptions, newspapers are facing a double setback with falling
subscriptions and advertising revenues and inability of online advertising to make up for the
losses.

The newspaper industry continues to be the largest contributor to the print industry. In 2011,
94 percent of total print revenues were contributed by the newspaper publishing sector up
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from 92 percent in 2007. The newspaper industry is estimated to be worth INR 197 billion
while magazine industry is estimated to be INR 13 billion. The all India newspaper
penetration stands at approximately 20 percent (36 percent in urban and 13 percent in rural
India). India’s literate population base of 778 million provides a huge target audience to the
print companies. There were over 82,000 publications registered with the Registrar of
Newspapers as on 31 March 2011.

As per the IRS Q3 2011 and KPMG in India Analysis, Hindi is the key language market with
5 out of top 10 dailies being published in Hindi. Hindi and Vernacular languages have a
combined readership of almost 8 times of English readership contributing approximately 60
percent of industry’s revenues and cater to 89 percent of the readership. The reach of regional
newspapers across the country is 173.80 million compared to only 22.21 million in case of
English newspapers.

The survival strategies for the print industry have been to introduce new business models.
Many newspapers have launched their editions on digital platforms like internet while others
experimented with their print versions. Hindustan Times, for example introduced HT Mini, a
half-tabloid size newspaper, targeted at readers commuting in metros. Launching multi city
editions to cater to the regional markets has been a major strategy for National newspapers
like the Hindu, Times of India, DNA etc. Coming out with multiple supplements to cater to
the needs of various sections of the readership has also proved to be a useful strategy for most
newspapers, particularly English dailies. The Hindi market also followed suit and launched
supplements on the lines of English dailies. Hindustan, for instance, launched a supplement
like Brunch called ‘Anokhi’ targeted to cater to its women readers and a Jobs supplement
targeted at the Hindi belt.
1.3.3 FILMS
Films are one of the most important forms of entertainment in India. In fact it is said that there
are only two religions in India – cricket and films. The Indian film industry has come a long
way – from the first soundless motion pictures brought to India by Lumiere Brothers in 1896,
to India’s first silent feature film King Harishchandra in 1913, to the huge film industry that
we have today as we stand on the threshold of completing a century of Indian cinema in 2013.

Today, the film industry in India is among the largest in the world in terms of films produced
in over 22 different languages including Hindi and other regional languages. It is estimated
that approximately 23 million Indians go to see a film every day with 3.7 billion film tickets
being sold annually.

The technology of film-making in India is considered to be among the best in developing

countries. And the film industry provides employment to nearly 6 million people. Of the 1000
films produced annually, Bollywood produces about 200. The rest are regional or non-Hindi
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productions. However, in terms of reach and revenue, and popularity of the stars, Bollywood
films dominate the industry. In facts industry experts claim that Bollywood alone accounts for
46 percent of the total Indian film industry revenues. However they also agree that South
Indian cinema - Tamil, Malayalam, Telegu, and Kannada language films - perform better at
the box office, with four of every ten films becoming profitable.

The Indian film industry was estimated to be INR 93 Billion in 2011 and is projected to grow
at a CAGR of 10.1 percent to touch INR 150 Billion in 2016.

1.3.4 RADIO
Compared to the other media, the radio industry is much smaller in size despite the fact that it
covers 99% of the country’s population and is also the most cost effective mass medium of
one way communication. However, it has been showing good growth over the past few years.
Overall, the industry has grown at 15 percent in the calendar year 2011 to reach INR 11.5
billion compared to INR 10 billion in 2010.

All India Radio, India’s public broadcaster is one of the largest radio networks in the world. It
was the sole radio network in the country for a long time until the entry of private FM a few
years back. From the days of dominance of All India Radio (AIR) to the present bouquet of
channel options available, this industry has come a long way. The entry of private FM and the
accessibility of radio on mobile phones and cars has changed the face of the radio industry in
the country. According to Madison Media Research, 51% of the FM listeners tune in daily for
one hour. Another 39% tune in daily for somewhere between 1-3 hours.

As per the IRS data on radio listenership for Quarter 3 of Calendar Year 2011, 30 percent of
radio listenership happens from out-of-home. Share of radio listenership on mobile phones has
increased from 20 percent in 2009 to 25 percent in 2011. Future growth listenership is
expected to come from increased penetration of FM in smaller cities and continued increase of
listenership on platforms like mobile phones, internet, tablets etc.
1.3.5 NEW MEDIA
The media scenario in India has undergone tremendous change due to the emergence of what
is called new media. New media refers to interactive forms of communication that use the
Internet, including podcasts, social networks, text messaging, blogs, wikis, etc. New media
makes it possible for anyone to create, modify, and share content with others, using relatively
simple tools that are often free or inexpensive. New media requires a computer or mobile
device with Internet access.

Internet has emerged as one of the strongest mediums to reach out to people, due to better
broadband speeds, easy availability and reasonable pricing of internet-enabled devices and
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 awareness among today’s youth. With the evolution of the digital media ecosystem in India,
the media industry has come to terms with the impact of the internet on its traditional business
models and is beginning to adapt itself accordingly.

KPMG in India analysis places the number of internet connections in India to be

approximately 88 million in 2011 and projects it to grow to over 400 million by 2016. Taking
into account multiple users for a single wireline connection, the number of internet users
reached 132 million in 2011, about 25 percent of the size of the total TV viewers in the
country and is expected to reach about 70 percent of total TV viewers by 2016. This will mean
that over 500 million users will have internet access by 2016 covering around 40 percent of
the country’s population.

The Comscore data on Indian Internet Usage has reported the average time spent online to be
26 minutes per user per day in 2011. Mobile phones and other mobile devices have emerged
as a major tool via which internet is accessed. A large number of mobile internet users are
accessing a wide range of online content using smart phones and tablets. In 2011, the number
of internet enabled smart phones in India was recorded to be 10 million. The balance mobile
internet users accessed content over feature phones. It is estimated that internet enabled smart
phones could reach approximately 264 million by 2016.
1.4 MANAGEMENT PRINCIPLES
The job of a media manager is like that of any other manager – getting people together to accomplish
desired goals and objectives using available resources efficiently and effectively. Management
comprises planning, organizing, staffing, leading, directing, and controlling an organization for the
purpose of accomplishing a goal. The job of a media manager is to manage media organizations which
like any other organization requires managing human resources to get optimum results. Therefore, a
media manager needs to be well-versed with the principles of management.

Management principles have been put forward by a number of management theorists. The most
prominent among them and the most widely accepted is Henri Fayol. Fayol’s management principles
very comprehensively sets out the principles that lead to smooth and efficient functioning and
management of an organization. The fourteen principles of management propounded by Fayol may be
enumerated as follows:
 Division of work
 Authority
 Discipline
 Unity of Command
 Unity of Direction
 Subordination of individual interest to general interest
 Remuneration

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  Centralization
 Scalar Chain
 Order
 Equity
 Stability of tenure
 Initiative
 Esprit de corps (Unity is strength)
If we analyze Fayol’s theory, we find that these fourteen principles are very much applicable to all
forms of media organizations.
Division of work is an effective way of increasing efficiency of work in all kinds of organizations,
including media organizations. Specialization reduces the number of objectives towards which
attention and effort are to be directed. For example, the different activities of a newspaper are divided
between the four main departments: Editorial, Advertising, Circulation and Printing; and further, there
are a number of people working in each department, responsible for different activities.
Again, it is undoubtedly true that almost all media organizations need to have a scalar chain or
hierarchical system of administration and clear lines of authority and accountability in order to
function effectively. Managers in hierarchies are part of a chain like authority scale. Each manager,
from the first line supervisor to the president, possess certain amounts of authority or the power to give
orders. Take for example a daily newspaper. The Editor in Chief holds the key position, while he has
working under him one or more assistant editors and bureau chiefs. The Assistant Editors in turn have
under them editors of different pages or sections of the newspaper. These editors are followed in
hierarchy by senior sub-editors and chief reporters who in turn have under them special
correspondents, reporters, photographers etc. There is a clear line of hierarchy, command and
authority. The reporters shall report to their respective editor, who will report to the senior editor, who
will in turn report to the chief editor and so on.

Again, discipline is very much essential for any organization to run effectively. In the same way,
every organization needs to have a unity of command and unity of direction so that objectives and
motives do not clash. For example, in a television channel which has a scalar chain of administration
one subordinate should receive orders from one superior only, so that no confusion arises. If the news
editor gives a different order to the news anchor, and if the production manager gives another order
that clashes with the other, it will only leave the anchor confused.

Fayol also emphasized on the point that the entire organization should have a common goal and that
personal interest must invariably be overlooked against general interest. Media organizations are
also no exceptions. For example, if it is beneficial for a company to dismiss 10 proofreaders and
acquire one computer with which a single person can work faster and can save money as well as time,
then it is definitely in the best interest of the company.

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Again, centralization is another principle that most organizations, including media organizations
adopt for management at present for easier running and administration. For example, in a news
channel, all important decisions are taken by the chief editor and not the delegated managers or sub-
editors.

Similar is the case of remuneration and equity. In every media organization, employees expect to be
paid fair wages for their work and employees of the same rank expect equal remuneration as well as
equal treatment from their employers.

In the same way, stability of tenure or job security is another factor that is a part of management of
media organizations in the present context. For example, jobs in a government TV channel, like
Doordarshan comes with a definite tenure and ensure a secure job to the employees, thus providing
incentive for better work efficiency and reduce pressure.
Initiative is another important principle which media organizations must encourage and inculcate.
Media is a creative industry, and creativity comes only with passion and initiative.

And most importantly, the maxim unity is strength holds true for very organization, and perhaps more
so for a media organization. Every organization is based on team effort and every post or duty is inter-
related. And media organization definitely can be managed without unity among its members as each
person performs a specialized duty and creates a piece of work that adds up to define the final product.
It is the responsibility of the management to encourage such a harmonizing spirit.

Thus we can see from the above discussion that Henri Fayol’s fourteen principles are very relevant for
media organizations and that these principles need to be followed in order to assure the smooth
functioning of any media organization.
1.5 MEDIA OWNERSHIP PATTERNS
Ownership patterns determine who owns, and consequently who controls media facilities. The
different types of media ownership patterns are summarised below:
 Government/Public/State owned Media
 Private owned media
 Community media.
 Media directly owned by political parties.
1.5.1 GOVERNMENT/PUBLIC/STATE MEDIA
Government Media/ Public Media/ State media or state-owned media is a pattern of ownership
where media is controlled and funded by the state. In some countries, all media outlets may be
state owned while in others such media may exist in competition with privately controlled
media. Its content is usually more prescriptive in nature and often pro-state, at times even
taking on the role of Government mouthpiece. Content mostly does not lend itself to
commercial considerations as in most cases such media are under no pressure to attract high
ratings or generate advertising revenue. In certain regions, which again are a rarity, the content
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may also be subject to censorship thus filtering our content which the state deems illegal,
immoral or unfavourable to itself. Their funding mainly comes from the government budget,
licence fee paid by television viewers and a little from commercial advertising.

Government-owned media are usually broadcasters – like Prasar Bharati (which includes
Doordarshan and All India Radio) in India, BBC in Britain, Radio Television Hong Kong
(RTHK) in Hong Kong and Japan Broadcasting Corporation (JBC) in Japan. Each of these
broadcasters in spite of being state owned have editorial independence and free from direct
government interference.

However, there are also government-owned newspapers in some countries. Nigeria for
instance has a few newspapers which are owned by the government prominent among which
are Daily Times and The New Nigerian. In Egypt, the government owns a controlling stock in
three major daily Egyptian newspapers - Al-Ahram, Al-Akhbar, and Al-Gumhuriya. Uganda
too has a number of government newspapers like The New Vision, Bukedde etc.
1.5.2 PRIVATE-OWNED MEDIA
Private-owned media can range from those run by giant multinational corporations to small
media organizations owned by local businesses. Such media are run primarily for profit. They
are usually under the terms of a licence granted on a periodic basis by a public authority.
Media run by big corporations are known as ‘corporate media’.

In India the print media is entirely privately owned. Apart from All India Radio and
Doordarshan, and a few community owned media stations, all other broadcasters in the
country are private-owned. Private ownership of media is indeed the trend of the day and
increasingly fewer individuals or organizations are controlling ever-growing shares of
the mass media.

Some of the large global media conglomerates include Viacom, CBS Corporation, Time
Warner, News Corp, Bertelsmann AG, Sony Corporation of America, NBC
Universal, Vivendi, Televisa, The Walt Disney Company, Hearst Corporation.

The Times Group, also know as Bennett, Coleman & Co. Ltd. is the largest mass media
company in India. It has owns a number of dailies, including two of the largest in the country
– The Times of India and The Economic Times, two lead magazines, twenty-nine niche
magazines reaching 2468 cities and towns, thirty-two Radio Stations, several TV channels
including two news channels. Other leading conglomerates are the HT Media group, the
Eanadu group, Star Group, Zee Group, Network 18 etc.

Private media ownership has advantages as well as disadvantages. Private media ownership
usually results in better quality products due to competition from other privately owned media
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houses. If one has to survive the tough competition, quality cannot be compromised. Also
because these firms are not owned by governments they are able to accommodate alternative
opinions. On the other hand, the disadvantage is that private media firms place profit above
public interest. Advertising revenue being their many source of funding, they concentrate
more on creation of commercially competitive content.
1.5.3 COMMUNITY MEDIA
Community media is a form of media that is created and controlled by a community. The
community could either be a geographic community or a community of identity or interest,
particularly a disadvantaged section of people. At times it could also be a religious
community.

Community media is separate different from commercial media and state run media, in that
it’s ownership and control is rooted in, and responsible to, the communities they serve. The
basic principle of participatory media is to engage those groups that are categorically excluded
and marginalized from the media making process.

The financial control of community media can be wholly in the hands of community groups
with funding coming from a number of sources like local governments, local educational
institutions and from donations by listeners. Sometimes such groups can partner with local
governments or other local community based organizations thus having partial financial
control. Apart from community groups, local educational institutions, NGOs etc can also own
community media.

Although community newspapers have been around for quite sometime now, community
broadcasting has emerged only in the last 20 years with the emergence of lower cost
broadcasting technologies and liberalization of licensing regulations. Community radio has
proliferated and to a certain extent community TV has also surfaced. Today, however,
community radio is the most popular form of community media in the world.

In India, community radios are owned by educational institutions, NGOs and Krishi Vigyan
Kendras (KVK). Deccan Development Society (DDS) was the first NGO to start community
radio in India and the first campus community radio is the Anna University campus radio.

One well known community TV initiative in India is Ankuram community TV which is

project of Byrraju Foundation undertaken in collaboration UNESCO. It is now piloted in three
villages, namely, Cherukumilli, Juvvalapalem and I-Bhimavaram in West Godavari district,
Andhra Pradesh, South India. Examples of community newspapers in India are Adyar Times
and the Anna Nagar Times.
1.5.4 MEDIA DIRECTLY OWNED BY POLITICAL PARTIES

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Certain media can also be directly owned by political parties. Since such are owned and
controlled by political parties, they also serve to fulfil narrow political interests. They can be
generally categorised as propaganda mechanism. While in certain cases the media are owned
directly by the party, in other instances they may have political affiliation as in being owned
by a political family or a politician and run like a regular private medium.

The Indian mediascape is full of instances of political control in media – whether direct or
indirect. The Communist Party of India (Marxist) is a case in point. Infact, the CPI(M) is
considered to be quite a media conglomerate at a national level. Its central organs are People’s
Democracy in English and the Lok Lehar in Hindi published from multiple locations. In
addition to that, the party also publishes a theoretical quarterly, The Marxist; five dailies in
different Indian languages; several weeklies and fortnightlies in Assamese, Oriya, Bengali,
Malayalam, Punjabi, Kannada, Marathi, and Gujarati. These publications are supported by its
own news agency, the India News Network.

The Trinamool Congress has control over Kolkata TV, and Sambad Pratidin. The Trinamool
Congress also controls Channel 10. Until 2008, the Indian National Congress also funded its
own paper, the National Herald.

In Punjab, the Shiromani Akali Dal’s Sukhbir Singh Badal owns PTC and PTC News. In 2008,
the Badals launched a bouquet of three channels – PTC News, PTC Punjabi and PTC Chak
De.

The hotbed of political media ownership, however, is South India.

In Kerala, their newspaper, Deshabhimani, is controlled by the CPIM(M) Kerala State

Committee. Two TV channels, Kairali TV and People TV are also controlled by the party.
Again, the Kerala Pradesh Congress Committee (KPCC) has teamed up with four NRI
businessmen to launch Jai Hind TV. KPCC members have also invested about Rs. 20 crore in
the Indiavision channel, which is controlled by former Muslim League minister M. K.
Muneer.

In Andhra Pradesh, Jagan Mohan Reddy of YSR Congress, has a newspaper and television
channel Sakshi TV.

In Tamil Nadu, AIADMK chief Jayalalita controls Jaya TV, Jaya Max, Jaya Plus, and J
Movie. Kalanithi Maran, son of Murasoli Maran and brother of Dayanidhi Maran has 75%
ownership control over the companies that own Sun TV, Sun News, KTV, Sun Music, Chutti
TV, Sumangali Cable, Adithya TV, Chintu TV, Kiran TV, Khushi TV, Udaya Comedy,
Udaya Music, Gemini TV, Gemini Comedy, and Gemini Movies. He also controls the
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 newspaper Dinakaran, and Suryan FM93.5 and Red FM 93.5. DMK chief M Karunanidhi
controls the very popular Kalaignar TV.

The north-east too is not far behind, with Assam and Nagaland in the lead. Nagaland Chief
Minister Neiphiu Rio owns the Eastern Mirror and in Assam, Riniki Bhuyan Sarma, wife of
health minister Himanta Biswa Sarma, controls the channels News Live and Rang. MLA
Anjan Dutta and minister Rockybul Hussain own the dailies Ajir Dainik Batori and
Janasadharan respectively.
1.6 MEDIA ORGANIZATION STRUCTURE
Media organizations are generally organized in line with a basic structural and function approach that
is hierarchical in nature. Like many other businesses the organizational chart in a media organization
also usually reflects a vertical top-down flow of authority.

Depending on the nature of the output to be achieved, the work is divided into categories and placed
under departmental heads. The structure of large media organizations are usually quite formalized as
there is need for extensive coordination among big groups of people, particularly, when they are
working in different geographic locations. Large newspapers having pan national coverage and media
conglomerates with a trans-national presence are examples of such formalized structures. Such
organizations have very rigid structures that are responsible for the creation of media content under
tight deadlines and within clearly defined rules or standards of quality.

In smaller, more niche oriented organization the structure is much more informal. Instead of having
multiple departments with well laid out division of job responsibilities, here a handful of people work
together responding to the demands of emerging situations sharing duties and responsibilities. Small
advertising and Public Relations agencies often have this kind of structures.

Truly speaking, the structure of media organizations is different form ordinary business structures in
the sense that media organization structures are often combinations of formal and informal structures.
They are sort of hybrid organizations - parts of which are rigid and highly controlled, but other parts
are very flexible. Because of such structural nature, media organizations are considered to be the most
difficult kinds of organizations to manage.
1.7 SUMMING UP
 The Media and Entertainment Industry (M&E) is one of the fastest growing sectors in the
world.
 The technological advancements in the broadcasting and publishing segments and the
changing consumption patterns of the media consumers had enabled the industry to witness
unprecedented growth during the last decade.
 Media and Entertainment is an ever growing area, evolving continuously and opening up new
opportunities everyday. Within each broad field, wide arrays of career paths exist.

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  India is one of the largest media consuming markets in the world with Entertainment and
Media being one of the fastest growing sectors in the economy.
 According to the FICCI-KPMG Indian Media and Entertainment Industry Report 2012, the
Indian E&M industry grew from INR 652 billion in 2010 to INR 728 billion in 2011,
registering an overall growth of 12 percent.
 The industry is estimated to achieve a growth of 13 percent in 2012 to touch INR 823 billion
and is projected to grow at a CAGR of 14.9 percent to reach INR 1,457 billion by 2016.
 A media manager needs to be well-versed with the principles of management. Fayol’s
fourteen principles are very much applicable to all forms of media organizations. They are -
Division of work, Authority, Discipline, Unity of Command, Unity of Direction,
Subordination of individual interest to general interest, Remuneration, Centralization, Scalar
Chain, Order, Equity, Stability of tenure, Initiative, Esprit de corps (Unity is strength)
 Ownership patterns determine who owns, and consequently who controls media facilities. The
different types of media ownership patterns are - Government/Public/State owned Media,
Private owned media, Community media, Media directly owned by political parties
 Media organizations are generally organized in line with a basic structural and function
approach that is hierarchical in nature. Like many other businesses the organizational chart in
a media organization also usually reflects a vertical top-down flow of authority.
 The structure of large media organizations are usually quite formalized as there is need for
extensive coordination among big groups of people.
 In smaller, more niche oriented organization the structure is much more informal.

1.8 RECOMMENDED READINGS

 Kohli-Khandekar, Vanita, (2010), The Indian Media Business, Response Books
 Redmond, James, (2004), Media Organization Management: Balancing on the Wire: The Art
of Managing Media Organizations , Dreamtech Press
 Nanda, J.K., (2006), Management Thought, Sarup & Sons

1.9 PROBABLE QUESTIONS

a. How would you place the Indian Media and Entertainment industry vis-à-vis the
global industry?
b. Discuss the relevance of Fayol’s management principles to media organizations of
today.
c. Describe the different patterns of media ownership in India. Which form of ownership
do you think is the most predominant in the country?
d. How is the structure of media organizations different from other organizations?

16
Unit- 2: INDIAN MEDIA SCENE

UNIT STRUCTURE

Objectives

Introduction

Indian Media Scene

Media firms and Media Industry

Market structures in media industry

Determinants of market structures in media industry

 Technology

 Regulation, Cross ownership of media ---meaning and current status

Summing up
17
Suggested Readings

OBJECTIVES

After reading this unit, you will be able to –

 Discuss media scenario in India, media firm and market structure

 Understand the determinants of market structures in media industry

 Comprehend the concept of

i)Technology

ii)Regulation, Cross ownership of media

INTRODUCTION
Mass media in India is proliferating in leaps and bounds. Coupled with new age technology and
favourable demographics Indian media industry is one of the fastest growing sectors. Since last decade
India is witnessing unprecedented growth in the number of TV channels, news channels (especially
regional channels), FM radio channels, digital media. . While print media is on decline in western
countries, growing number of literate people in the country has led to growth in print media too. Also
social media is playing an increasing role (e.g. (Anna Hazare campaign in 2011, Guwahati molestation
case in July 2012, Delhi gangrape issue in December 2012). While internet penetration and speed
remains a concern, nevertheless it would be interesting to see how existing media houses will cope- up
with the gradual shift of people to online platforms in coming days.

In this unit we will discuss about media firms and industry in India followed by the market structures
in media industry. We will also have a look into the various determinants of market structures in
media industry like Technology, Regulation, Cross ownership of media their meaning and current
status.

MEDIA FIRMS AND MEDIA INDUSTRY:

The media can be broadly categorised into the following categories: Television, Print, Film and Radio.
TV remains the dominant medium, print is the second largest medium and radio is estimated to
maintain its growth. According to Ficci-KPMG report the media and entertainment industry in India
recorded 12% growth to Rs 92,800 crore in 2013. In 2012, there were over 800 channels, 740 million
viewers and Rs 400 billion in total revenues. In Hindi, the top five brands Dainik Jagran, Dainik
Bhaskar, Hindustan, Amar Ujala and Rajasthan Patrika control roughly 60 per cent of audience and
revenues. In English the top three groups- The Times of India, HT Media, The Hindu dominate the
readership. Most of the media firms are controlled by large, for-profit corporations which reap revenue
from advertising, subscriptions. The Indian media industry is huge and many national, regional and
international players are in fray. Major media firms in the country and their various operations have
been described below:

ABP Group

Ananda Bazar Patrika (ABP) Group is a large media group with headquarters in Kolkata. ABP Group
was established in 1922. Anandabazar Patrika is one of the largest circulated Bengali language daily
newspaper Ebela Bengali language newspaper targeting youth started from September 2012. The
Telegraph is the largest circulated English language daily newspaper among newspapers published
from Kolkata.

PUBLICATIONS

18
  Anandabazar Patrika is one of the largest circulated Bengali language daily newspaper

 Ebela Bengali language newspaper targeting youth started from September 2012

 The Telegraph, English Daily

 Anandamela is the largest selling Bengali children's fortnightly magazine

 Unish-Kuri is a popular fortnightly Bengali magazine for teens and young adults

 Sananda is a magazine for empowering women

 Anandalok A film magazine on Bollywood and Bengali movie celebrities

 The Telegraph in Schools (TTIS), newspaper by and for school students

 Desh has acted like a primer for Bengali literature and culture for many years

 Boiyer Desh

 Career

 Businessworld is a business magazine

 FORTUNE India A global business magazine

TV CHANNELS

 ABP News - Hindi language news channel in India. Formerly known as STAR News

 ABP Ananda - Bengali language news channel in India. Formerly known as STAR Ananda

 ABP Majha - Marathi language news channel in India. Formerly known as STAR Majha

PUBLISHING HOUSES

 Ananda Publishers

 Penguin India

HT MEDIA

HT Media found its beginning in 1924 when its flagship newspaper, Hindustan Times was inaugurated
by Mahatma Gandhi. In 2003, the company incorporated all of its media businesses under HT Media
Ltd. In 2004, HT Media Ltd was listed as a public company. It has holdings in print, electronic and
digital media.

PUBLICATIONS

 The Hindustan Times

 Hindustan, Hindi daily

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  Mint, the business newspaper was launched in 2007 in partnership with Wall Street Journal

 Kadambini, Literary magazine

 Nandan, Children’s magazine

RADIO STATION: Fever 104 FM was launched in 2006

HT’s ONLINE BUSINESS: Largely handled by Firefly e-ventures internet business, include the
flagship web portal Hindustantimes.com, Livemint.com, Desimartini.com and Shine.com.

HT Syndication is a content syndication division established in mid-2003

INDIAN EXPRESS LIMITED

Indian Express Limited is a news media publishing company. It was founded in 1932, presently it
publishes several widely circulated dailies. The company's newspapers are published from over a
dozen cities daily, including New Delhi, Mumbai, Bangalore, Kolkata, Pune, Chandigarh, Lucknow,
Jammu, Coimbatore and Chennai.

PUBLICATIONS

 The Indian Express - a national daily (English)

 The Financial Express - a business daily

 Loksatta - Marathi daily

 Lokprabha - Marathi weekly

 Jansatta - Hindi daily for North India

 Screen - Entertainment journal

EXPRESS ONLINE: The portal for hosting IndianExpress.com, FinancialExpress.com,

ScreenIndia.com, Loksatta.com and Lokprabha.com, ExpressCricket.in, and KashmirLive.com

OTHER VENTURES

 Business Publications Division: B2B publications and events catering to major industry
verticals like Information Technology, Hospitality & Travel, Pharma & Healthcare, etc.

 Express Institute of Media Studies: A media school from Indian Express Group

LIVING MEDIA

Living Media (India Today Group) is a media conglomerate based in New Delhi, India. It was founded
in 1975 with its first publication was India Today International. It has interests in magazines,
newspapers, books, radio, television, printing and the Internet.

PUBLICATIONS

 India Today

 Design Today
20
  Business Today

 Travel Plus

LMI, also has several Joint ventures/Licensing agreements with prominent brands for their Indian
editions, they are:

 Cosmopolitan

 Good Housekeeping

 Golf Digest

 Harvard Business Review

 Mail Today, a joint venture with Daily Mail

 Men's Health

 Prevention

 Reader's Digest

 Scientific American

TV CHANNELS

Subsidiary TV Today Network owns

 Aaj Tak

 Headlines Today

 Dilli Aaj tak

 Tez

RADIO CHANNEL: Oye104.8 FM

OTHER BUSINESSES:

 Thomson Press, printing business

 Music Today, Music publishing business

 BagItToday.com, Online Shopping Website

 Indiabizsource.com, Online B2B Directory

NDTV GROUP

New Delhi Television Limited (NDTV) is an Indian commercial broadcasting television network
founded in 1988 by Radhika Roy and Prannoy Roy. New Delhi Television is among India's top
broadcasters and has offices and studios across the country.

TV CHANNELS

21
  NDTV 24x7 – English News channel

 NDTV India – Hindi News channel

 NDTV Profit – Business News channel

 NDTV Good Times – Lifestyle channel

International venture

 ATN NDTV 24x7

 NDTV Worldwide

NDTV Convergence – Website, Mobile Applications

Indianroots - Indian Ethnic e-commerce venture

NETWORK 18

Raghav Bahl is the founder and remains the controlling shareholder and managing director. The
company was incorporated as a private limited company on 16 February 1996. In 2006, it was
converted to a public limited company. The name of the company was changed from SGA Finance &
Management Services Private Limited to Network 18 Fincap Private Limited with effect from 12 April
2006. In Jan 2012, there was a large investment guarantee by Mukesh Ambani's Reliance Industries
Limited in a complex deal.

NETWORK TV CHANNELS

 CNN-IBN, JV of IBN 18 Broadcast Ltd and Turner International India

 IBN-7, an IBN 18 Broadcasting Ltd Channel

 CNBC Awaaz, Joint Venture(JV) of CNBC Asia & TV18

 CNBC-TV18, JV of CNBC Asia & TV18

 CNBC TV18 Prime HD, JV of CNBC Asia & TV18

 IBN-Lokmat, JV of Lokmat & TV18

 MTV India, a Viacom 18 channel

 Nick India, a Viacom 18 channel

 Nick Jr. India, a Viacom 18 channel

 Sonic, a Viacom 18 channel

 VH1 India, a Viacom 18 channel

 Colors, a Viacom 18 channel

 Colors HD, a Viacom 18 channel

 Comedy Central, a Viacom 18 channel

22
  HomeShop18, a TV18 Channel

 Topper, an Educomp 18 channel

 History TV18

 History TV18 HD

 ETV Network

ONLINE BUSINESSES

Web18 is an unlisted umbrella company for all Network 18 web properties such as moneycontrol.com,
in.com, ibnlive.com, josh18.com, cricketnext.com, commoditiescontrol.com, tech2.com,
poweryourtrade.com, easymf.com, compareindia.com, First Post (India) and upcoming women's and
automotive portals. The company also owns stakes in Jobstreet (India), Yatra.com and
BookMyShow.com.

OTHER BUSINESSES

 Studio 18 is a newly formed division of Network 18 for film production and financing.

 Webchutney is a digital marketing agency.

 InfoMedia 18, a media company with business Directories, Magazine Publishing, Printing
Services and Publishing Outsourcing services.

 Sun 18 -In 2010 it entered into JV with Sun Network to distribute its channels through cable,
DTH, IPTV, HITS and MMDS. Sun 18 South focuses on the non-Hindi-speaking markets and
is managed by the Sun Network. Sun 18 North focuses on the rest of Indian markets and is
operated by the Network18 Group.

 Network18 publishes Forbes India in collaboration with Forbes Media.

SONY ENTERTAINMENT TELEVISION

Sony Entertainment Television or SET, is a Hindi-language based general entertainment television

channel in India. It was launched in October 1995 and is owned by Multi Screen Media Pvt. Ltd.
(MSM, formerly SET India Private Limited), a subsidiary of Sony Pictures Entertainment. The
network carried C.I.D. and Kaun Banega Crorepati.

TV CHANNELS

 Sony Entertainment Television

 SAB TV

 SET Max

 Sony Aath

 SET PIX

 Sony MIX

 Sony LIV
23
  Sony SIX

 AXN

 Animax India

STAR INDIA

STAR India is an Indian media and entertainment company, owned by 21st Century Fox. It is
headquartered in Mumbai, with regional offices in cities Delhi and Chennai. Star TV was a joint
venture between Hutchison Whampoa and Li-Ka Shing and was established to launch such a service.
Li-Ka Shing's son, Richard, was CEO. It was launched in 1991. After many ups and downs in its tie up
operations , it was in August 2009, STAR Broadcasting Corporation revealed a restructure to its Asian
broadcast businesses into three units – STAR India, STAR (Greater China), and Fox International
Channels Asia. STAR India's portfolio includes 33 channels in eight languages.

TV CHANNELS

 STAR Plus Hindi general entertainment

 STAR Gold Hindi movie channel

 STAR Movies an English-language movie channel which broadcasts in India, Pakistan,

Vietnam, Mainland China, Taiwan, Philippines, and Middle East.

 STAR World English-language entertainment channel

 STAR World Premiere English-language channel that broadcasts American programs

 STAR Movies Action An English-language action movies channel

 Life OK Hindi general entertainment channel

 Movies OK Current movies Hindi channel

 Channel V India Hindi music video channel

 STAR Utsav Marathi channel which shows some of the popular programs from STAR
Plus.

 STAR Sports 1 A sports channel

 STAR Sports 2 A sports channel

 STAR Sports 3 24X7 Hindi sports channel consisting of full cricket programming and
broadcast by ESPN STAR Sports (ESS), a Joint Venture with ESPN International

 STAR Sports 4 broadcast by ESPN STAR Sports (ESS), a Joint Venture with ESPN
International

 STAR Jalsha Bengali-language general entertainment channel.

 Jalsha Movies Bengali-language movie channel

24
  STAR Pravah Marathi-language general entertainment channel in India.

 STAR Vijay Tamil-language general entertainment channel.

 Asianet Malayalam-language general entertainment channel.

 Asianet Plus Malayalam general entertainment channel.

 Asianet Middle East Malayalam general entertainment channel specially for the Middle
East viewers

 Asianet Sitara Telugu-language general entertainment channel.

 Asianet Movies Malayalam-language movie channel.

 Asianet Suvarna Kannada-language general entertainment channel.

 Asianet Suvarna Plus Kannada-language general entertainment channel.

 National Geographic Channel India

 Nat Geo Music

 Nat Geo People

 Nat Geo Wild

 Fox India

 Fox Crime

 Fox Traveller

 Fox Sports News Formerly known as ESPNews Asia

 Star CJ Alive is a shopping channel (Star India and CJ Group of South Korea)

OTHER BUSINESSES:

 STAR India also manages News Corporation's interests in seven ventures including DTH
operator Tata Sky; cable system Hathway, channel distributor Media Pro Enterprise, south
Indian broadcast business of STAR Vijay, the film producer and distributor Fox Star Studios
India.

 STAR India has launched the HD versions of many of its channels including Star Plus HD,
Star Movies HD, Star World HD, Star Gold HD and National Geographic Channel India HD.

THE HINDU GROUP

It is a publishing organisation located in Chennai. The initial publication of The Hindu Group was The
Hindu, a daily newspaper that began as a weekly in 1878. The Hindu Group publishes several news
papers and magazines and other journals.

PUBLICATIONS

25
  The Hindu - Flagship National Daily Newspaper

 The Hindu Business Line – Business Daily

 The Hindu International Edition – Weekly

 Sportstar – Weekly Sports magazine

 Frontline – Fortnightly features magazine

 Praxis – Quarterly Journal on Management

 Survey of Indian Industry – An annual review on Indian Industries

 Survey of Indian Agriculture – An annual review on Indian Agriculture

 Survey of the Environment – An annual review of the Environment

 Indian Cricket – An annual record book on Cricket

 The Hindu Index – Monthly and Cumulated Annual

 The Hindu (Tamil) – Tamil language daily

THE TIMES GROUP

The Times Group (also referred as Bennett, Coleman and Co. Ltd.) is the largest mass media company
in India. It was founded in 1838. The company remains a family-owned business as the descendants
of Sahu Jain family controls majority stake in Times Group. The Times Group has over 11,000
employees and revenue exceeding $1.5 billion.

PUBLICATIONS

 The Times of India, World's largest English-language broadsheet daily in terms of circulation

 The Economic Times, India's largest financial daily, and the world's second largest in terms of
circulation after The Wall Street Journal

 Maharashtra Times, Marathi daily

 Navbharat Times, Hindi Daily in Delhi and Mumbai

 Sandhya Times, Hindi Daily Evening Tabloid in Delhi

 Mumbai Mirror India's largest circulated compact newspaper

 Kolkata Mirror

 Ahmedabad Mirror

 Pune Mirror

 Bangalore Mirror, Bangalore's first morning compact daily

 Brand Capital, Play a bigger game

 Vijaya Karnataka, Kannada daily

26
  ZigWheels, India's largest Automobile magazine

 ET Wealth, India's largest Personal Finance compact weekly

SUBSIDIARIES

Times Global Broadcasting Limited: It is the Television division. It is also called Times Television
Network. Following channels falls into the group.

 Times Now A general interest news Channel

 ET Now A business news channel

 Zoom A 24x7 Bollywood entertainment and gossip channel

 Movies Now A 24x7 Hollywood Movies channel in High Definition

World Wide Media

It started off as a 50:50 magazine joint venture between BCCL and BBC magazines. In August 2011
after buying remaining 50 per cent shares World Wide Media became a fully owned subsidiary of
BCCL.

 Filmfare

 Filmfare Awards, an awards show

 Femina

 Femina Miss India, a Beauty Pageant

 Mr India World, a Male Beauty Pageant whose winner represents India in Mr World.

 Top Gear Magazine India

 BBC Good Homes

 Femina Hindi

 Grazia

 What to Wear

Times Innovative Media Limited & Entertainment Network India Limited (ENIL & TIML) that
controls

 Radio Mirchi National network of Private FM stations

 360 Degrees Events

 Times Outdoors Outdoors (TIM Delhi Airport Advertising Private Limited

 Mirchi Movies Limited Filmed Entertainment

 Media 360 concept India Pvt LtdBangalore Classifieds Channel Partner

27
TIMES INTERNET LIMITED

Times Internet Limited is one of the largest internet companies of India. Some of the larger properties
of TIL include:

 Indiatimes shopping - one of the largest and earliest ecommerce portals in India

 Indiatimes

 The Times of India

 Economictimes.com

 Navbharat Times

 Maharashtra Times

 Timescity.com Times City

 Gaana.com

 BoxTV.com

 TimesDeal.com

 MensXP.com

 SimplyMarry.com

 MagicBricks.com

 ZigWheels

 Timesjobs.com

ZEE ENTERTAINMENT ENTERPRISES

Zee Entertainment Enterprises Ltd. (ZEEL) one of the largest Indian media and entertainment
company based in Mumbai, Maharashtra. It is a subsidiary of the Essel Group. The company was
launched on 15 December 1991 and was previously known as Zee Telefims until 2006, when it was
renamed. The company's chairman, managing director and Founder is Subhash Chandra. Through its
strong presence worldwide, ZEEL entertains over 700+ million viewers across 169 countries. Apart
from news channels like Zee News, Zee Business, the group has many channels in its portfolio.

TV CHANNELS

 9X Hindi general entertainment

 Zee TV Hindi general entertainment Channel and flagship station

 Zee Cinema Hindi movie channel

 Zing Hindi music channel

 TEN Action Sports channel dedicated to football

 TEN Cricket Sports channel dedicated to cricket

 TEN Sports General sports channel

28
 TEN Golf Sports channel dedicated to Golf

 TEN HD shows Sports in high definition

 Zee Premiere Hindi new movie channel

 Zee Action Hindi action movie channel

 Zee Classic Hindi classic movie channel

 & Pictures Hindi youth movie channel

 Zee Anmol Hindi general entertainment Channel

 Zee Smile Hindi general entertainment Channel

 Zee Jagran Hindi religious channel

 Zee Trendz Fashion channel

 Zee Cafe English general entertainment channel

 Zee Studio English movie channel

 Zee Aflam Hindi movie channel with Arabic subtitles, It also shows the movies Dubbed
in Arabic

 Zee Alwan Arabic general entertainment with dubbed Hindi serials, dramas and shows

 Zee Film Hindi Hindi movie channel with Arabic subtitles

 Zee Salaam Urdu (India) infotainment channel

 Zee Variasi Zee's Malaysian Channel

 Zee Telugu Telugu general entertainment channel

 Zee Bangla Bengali general entertainment channel

 Zee Bangla Cinema Bengali movie channel

 Zee Kannada Kannada general entertainment channel

 Zee Marathi Marathi general entertainment channel

 Zee Talkies Marathi movie channel

 Zee Punjabi Punjabi general entertainment channel based in United States, Canada and
United Kingdom

 Zee Tamil Tamil general entertainment channel

 Zee ETC Bollywood Hindi music channel

 Zee Purvaiya Hindi general entertainment channel

 Zee Kalinga Oriya general entertainment channel

 Zee ETC Punjabi Punjabi general entertainment channel

29
  Zee Khana Khazana Hinglish food channel

 ZeeQ Kids Channel Edutainment channel

MOVIE PRODUCTIONS

In 2008, Zee Networks launched Zee Motion Pictures an independent subsidiary of Zee Entertainment
Enterprises focusing on development, production, distribution and marketing of mainstream films in
Hindi and six regional languages (Tamil, Telugu, Kannada, Bengali, Marathi and Oriya). Zee Motion
Pictures also operates Zee Limelight for modestly budgeted films targeted at niche audiences.

MEDIA MARKET STRUCTURE

Recent decades have seen expansive media growth. Not only is the number of media outlets available
via cable, satellite, and the Internet greater than ever but the media companies themselves have been
growing at an unprecedented pace. The Times Group, Zee Group and STAR India are now part of the
billion-dollar media club. In India while the global media players continue to enter and adapt to the
market needs, regional media is proliferating at a significant rate. Being a diverse and multilingual
country, there are a number of vernacular dailies, regional entertainment channels and news channels.
The southern states showed up the way for the rest of the regions to follow. While regional players
like Malayala Manorama, Sun TV Network, TV 9, Pride East Entertainments Pvt Ltd. etc are
dominating the market in their respective regions, large media groups like Zee, STAR also Network
18 by who have nationwide reach through Hindi channels have gradually made considerable presence
in regional market too.
The convergence of media products has meant that media businesses have also converged. The
common digital foundation of contemporary media has made it easier for companies to re-package the
same content for different media. For example, it is relatively easy for newspapers with content
already produced on computers in digital form – to develop online Internet sites that contain uploaded
newspaper articles. Thus, newspaper publishers have become Internet companies. In fact, many media
have embraced the Internet as a close digital cousin of what they already do. The music industry has
responded to the unauthorised sharing and downloading of digital music files (early Napster, Kazaa
etc.) by developing its own systems to deliver music via the web to consumers (iTunes, Rhapsody etc.)
In the meantime the television and film industry’s response to the sharing of digital files is not as fully
developed but will likely follow suit. The issue of ownership in media is a defining factor when it
comes to discussing media market structure. One of the key differences in today’s media companies is
the wide variety of media they comprise. Media giants are likely to be involved in almost all aspects of
the media: publishing, television, film, music, the Internet, DTH and MSO’s and more. A
conglomerate by definition consists of many diverse companies. In the content versus conduit debate,
media pioneer Ted Turner colourfully explained, ‘Today, the only way for media companies to survive
is to own everything up and down the media chain … Big media today wants to own the faucet,
pipeline, water, and the reservoir. The rain clouds come next’ (Turner, 2004).

In large part, this growth has been fueled by mergers. Mergers and acquisitions, therefore, are often
carried out to bolster a company’s holdings in an attempt to become more strongly integrated, either
horizontally, vertically, or both. The numerous mergers that have left an industry dominated by large
companies have also produced an industry where the major players are highly integrated.

Globalisation of media conglomerates is the other phenomena that holds key to the media structure in
the country. The domestic market of the big media players in the West has become saturated with
media products, so markets like India holds key to their future growth. With their huge capital
resources the big players are in a position to compete even dominate the local media in emerging
markets. Also by distributing existing media products to foreign markets, media companies are being
able to tap a lucrative source of revenue at virtually no additional cost. One can see a Hollywood
30
movie or children related animated programs dubbed into many Indian languages to cater to the
audience here. Similarly Time Warner’s Cartoon Network is among the leaders in children’s television
in the US, as well as in India among other countries; Time Warner’s CNN International continues to
increase its global presence, with new CNN programs launched in India in 2005. As a result, all major
media conglomerates are now global players, representing a major shift in industry structure.
International revenues are making up an increasingly large percentage of the income of such
companies as Viacom, Disney, Time Warner, and News Corp.

DETERMINANTS OF MEDIA MARKET STRUCTURE

Indian media industry has undergone significant structural change, and is growing to become a
pervasive and increasingly influential force in society. These structural changes are linked to the
strategies pursued by the major media players. The structural changes and media industry strategies
have raised significant questions and prompted key debates about the role and future of media. The
last two decades has been marked by dramatic structural changes in the media industry. Some of the
most significant include growth and integration, globalisation, and concentration of ownership. The
determinants of media market structure are briefly discussed below:

 TECHNOLOGY

Technological change is transforming media industries. Digitisation lowers recording, storage,

reproduction and distribution costs, while computer-based editing facilitates higher quality and special
effects. Digitisation is the process of coding signals as numbers. When signals are digital, computer
technology can be and is involved in all stages of production, as well as in distribution and media use.
One single computer can be used to create and consume variants of all media. With electronic
distribution a vast range of content can be made available to consumers across global market. An
important aspect of digitisation is that the boundaries between different media have been brought into
question and a presupposition has developed that we are in an era of media convergence. Media
technologies have gone through a phase of digitisation. CDs and digital music media replaced records
and tapes, and movies are increasingly being produced and distributed digitally. Newspaper
production has become computer based and the news is distributed not only on paper, but also
digitally on the web. Technological change has facilitated the involvement of media corporations in
many different media. It used to be that each medium was a distinct entity; all that has changed with
the coming of the digital age.

Digital data are the backbone of contemporary media products. With the transformation of text, audio,
and video into digital data, the technological platforms that underlie different media forms have
converged, blurring the lines between once-distinct media. Satellite television, cable networks and
terrestrial networks for television are being digitized. Furthermore, various models for digital radio
are being tried out. And new digital media services, based on platforms like the web or the mobile
phone, are becoming important. New distribution technologies like DTH, Conditional Access System
(CAS) and IPTV, hold the future of the media industry as increasing digitization will radically alter
the ways in which consumers receive channels. The mandatory digitisation in the four metros and the
entire country will bring in more subscription revenues for the broadcasters as opposed to under
reporting of numbers by cable operators at present.

 REGULATION AND CROSS OWNERSHIP OF MEDIA

Media’s growth in India has been phenomenal in the last two decades. Liberalisation of the Indian
economy in the early 90’s has led many global media conglomerates to enter into the field. Also there
are many homegrown media houses that have proliferated in the Indian media landscape. Media
regulation in India at most of time is dependent on the mood of the ruling party at the centre.
Nominally, the press in India is self-regulating, overseen by the Press Council, which is a statutory
body reporting to parliament. The Telecom Regulatory Authority of India (TRAI) functions as a
31
broadcast regulator. Broadly the media and entertainment sector comes under the purview of the
Ministry of Information and Broadcasting which is responsible for formulation and administration of
laws relating to media and entertainment. There is no legislation to look after the investment and
technology norms in broadcast media. The Communication Convergence Bill 2001 has been put on
hold while proposed Broadcasting Bill has lapsed. Till date there is no single body which looks after
the ownership pattern. Before delving into the meaning of cross ownership in media let’s first
understand horizontal integration and vertical integration in media ownership.

Horizontal integration: An ownership structure in which one conglomerate owns or operates different
kinds of media (for example, newspaper, television networks, radio stations etc), concentrating
ownership across the different segments of the media industry.

Vertical integration: It is the ownership structure in which one conglomerate owns or operates all
aspects of production and distribution within a single segment of the media industry; for example
production house, DTH company, TV network etc.

Cross ownership means the diversification of media corporations into several fields of media
production and distribution. Horizontally, Bennett, Coleman & Co Ltd (BCCL) owns a large
newspaper chain (The Times of India, Economic Times and Navbharat Times), a thriving TV network
(Times Now) and one of the largest digital media empires (www.indiatimes.com). Vertically, the
Mumbai-based Zee Group owns TV channels, cable distribution and DTH business. It is interesting to
note that in many cases, business groups have both horizontal and vertical presence. Sun TV and
Essel Group have interests in print, TV, FM as well as distribution platforms like Direct-To-Home
(DTH) and MSOs. The Anil Dhirubhai Ambani Group is present in all media segments as well as
DTH, while Star India has interests in broadcasting and radio, as well as distribution platforms.
Ushodaya (Eenadu), India Today, Times Group, ABP Group, Bhaskar Group, Jagran Prakashan,
Malayala Manorama Group have interests in all three media segments — print, TV and FM radio.

Unrestricted cross media ownership is detrimental when it comes to maintaining pluralism in

democracy as few conglomerates control the opinions of larger section of people. TRAI first wrote a
paper on this issue in 2008 and again in 2013. Cross media ownership is a worrying factor, more than
a third of news channels are owned by politicians or builders affiliated to them. Not only that at least
60 per cent of the cable distribution systems in the country are owned by local politicians or somebody
from their relation. It is an unhealthy trend there is a need to discuss the political, elite ownership of
media and its impact. In 2013 TRAI wrote to Ministry of Information and Broadcasting for the second
time in four years stating that state and central governments should not be allowed into this business of
broadcasting or distribution of channels. However there has been no reaction on this.

India’s media and entertainment industry contributes around one per cent of the GDP. The combined
revenue stands at Rs.80,500 crore in 2011 with a projected annual growth of 17 per cent. There are
over 840 registered TV channels out of which 300 are news channels. Also, there are over 82,000
registered publications with more than 14,000 daily newspapers. Moreover while the western media
and entertainment has become stagnant, there remains huge untapped market therefore question arises
why worry about ownership? TRAI has given two reasons: One is political ownership of media, as
well as a trend of entities backed by parties taking over distribution channels, which makes
broadcasters dependent on them. The second trend is of corporate ownership across sectors, with the
aim of “promoting vested interests,” and “influencing policy-making” to earn revenues.

Critics of regulation on cross media ownership have put forth the constitutional argument of how
Article 19 allows for freedom of expression and freedom to run businesses. To which in 2009, TRAI
countered by quoting a 1995 SC judgment on how a monopoly over broadcasting is inconsistent with
free speech rights, and how the right to use airwaves needs regulation for preventing monopoly of
information and views relayed. There are three main issues to be dealt with before coming up a
regulation:

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Who should be disqualified from entering the media sector and hold broadcasting or distribution
licences?

Should entities be allowed to have interests across all media segments — television, print, and FM
radio?

And thirdly can a broadcaster also own a distribution company?

While TRAI insists that it only deal with ownership and carriage issues, there are apprehensions that
the outcome of the process will have consequences for freedom of expression. One fears that the
corporate control must not give way to state control “by proxy,” for the very threat of taking away a
licence or inconvenience can have serious implications on content. In view of the above discussion it
can be seen that there is a need for a truly independent media regulator on the lines of Securities and
Exchange Board of India (SEBI) or Insurance Regulatory. Ensuring media plurality and freedom of
speech and expression is a serious issue and needs political will.

SUMMING UP

Media, be it print, broadcast, radio or online is growing consistently in India. Triggered by opening of
market to foreign players and fuelled by demand there has been unprecedented growth of mass media,
particularly the electronic media, resulting in structural changes of far reaching consequences. There
has been a proliferation of news channels during the last decade. While the big daily newspapers have
further increased their circulation and readership, buoyed by increasing literacy there has been growth
in the circulation of vernacular dailies too. Regional media market is outpacing national market.
Digitisation has changed the production as well as the consumption pattern of media. Ownership,
Consolidation, merger and acquisition are the defining terms that will decide the future growth of
media in the country.

SUGGESTED READINGS

India Media Business by Vanita Kohli Khandekar

Mass Communication in India by Keval J Kumar

UNIT 3: NEWSPAPER MANAGEMENT

UNIT STRUCTURE

Objectives

Introduction

Principles of management

Ownership patterns and structure of a newspaper organisation

Impact of broadcast media & IT on print media

Emerging revenue patterns for print media and emerging marketing strategies

Customer relationship management (CRM)

Foreign Direct Investment (FDI) in print media

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Summing up

Suggested Readings

OBJECTIVES

After reading this unit, you will be able to –

 Understand the principles of management

 Discuss the ownership patterns and structure of a newspaper organisation

 Find out the impact of broadcast media and IT on print media

 Comprehend the concept of CRM and FDI in print media

INTRODUCTION

Management is basically the act of running and controlling an organisation. Every organisation has
some management principles which act as guidelines for managing its function effectively. Similarly
management of a newspaper organisation is also based on a set of principles.

In this unit you will be acquainted with principles of management, ownership patterns and structure of
a newspaper organisation. In view of the evolving media technologies the unit will also focus on
impact of broadcast and new media on print media apart from emerging revenue patterns, emerging
marketing strategies, CRM and FDI in print media.

PRINCIPLES OF MANAGEMENT

Principles of management are universal; sometimes they are modified to suit the needs and
requirements in view of different situation in the newspaper organisation. The various principles of
management including principles suggested by the great French management writer Henry Fayol are
briefly discussed below.

1. PRINCIPLE OF OBJECTIVE: According to this principle every member of the newspaper

organisation should be familiar with its basic goals and objectives, and every activity of the newspaper
organisation should be directed and should result in the accomplishment of these objectives.

2. PRINCIPLE OF SPECIALISATION: Also known as the Principle of Division of labour, the

principle of specialisation implies that the work of every person in the newspaper organisation should
be limited as far as possible.

3. PRINCIPLE OF SPAN OF CONTROL: The principle of span of control makes the newspaper
executives aware of the fact that on account of the limitation of time and ability there is a limit on the
number of subordinates that they can effectively supervise.

4. PRINCILE OF AUTHORITY AND RESPONSIBILITY: It implies that a person working in the

newspaper organisation should be held responsible for carrying out an activity in so far as he has
authority over that activity. Authority should not be conceived apart from responsibility.

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5. PRINCIPLE OF UNITY OF COMMAND: The principle of unity of command is the most widely
recognised principle of management. The principle of unity of command is based on the sound reason
that if a person receives orders from more than one superior, it would lead to confusion and chaos.

6. PRINCIPLE OF UNITY OF DIRECTION OR ORDER GIVING: It was stated by Fayol as "one

head and one plan for a group of activities having the same objectives". The principle of unity of
direction is largely meant to ensure co-ordination.

7. THE EXCEPTION PRINCIPLE: The exception principle means that every manager at every level
should take all decisions within the scope of authority and only matters beyond the scope of his
authority should be referred to his superior for decision..

8. SCALAR PRINCIPLE: This principle envisages that in every undertaking some kind of hierarchy
involving superior subordinate relationship should be established and that direct authority should flow
from superior to subordinate throughout the entire organisation.

9. PRINCIPLE OF BALANCE: This principle implies that the various parts of an organisation should
be in a balance and that none of the functions should be given undue emphasis at the cost of others.

10. PRINCIPLE OF DISCIPLINE: Fayol considered discipline as a general principle of management.

He stresses discipline as "respect for agreements which are directed at achieving obedience,
application, energy and outward marks of respect”.

11. SUBORDIANTION OF INDIVIDUAL INTEREST TO GENERAL INTEREST: This principle

states that in a business the interest of one employee or groups of employees should not prevail over
that of the concern. To ensure this the Fayol suggested (i) Firmness and good example on the part of
superiors,
(ii) Agreement as fair as possible, and
(iii) Constant supervision.

12. REMUNERATION OF PERSONNEL: This principle of Fayol states that remuneration should be
fair which gives satisfaction both to personnel and firm (employee and employer)

13. ORDER: By order Fayol meant a place of every one and every one in his place, the right main in
the right place. He believed that this order demanded precise knowledge of the human requirements
and resources of the concern and a constant balance between their requirements and resources.

14. EQUITY: This principle states that managers must treat employees with 'kindness'. Desire for
equity and equality of treatment are aspirations to be taken into account in dealing with employees.

15. STABILITY OF TENURE OF PERSONNEL: Fayol pointed out that instability of tenture is at one
and the same time cause and effect bad running. He asserted that generally the managerial personnel
of prosperous concerns is stable, that of unsuccessful ones is unstable.

16. INITIATIVE: This principle enjoins managers to sacrifice some 'personal vanity' in order to permit
the subordinates to keep up their zeal and initiative.

17. ESPRIT-DE-CORPS: This principle states that "union is strength". Fayol exhorts manger to
encourage cohesiveness and Esprit-de-Corps among his subordinates.
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NEWSPAPER OWNERSHIP

Newspapers in India since its inception (Hickey’s Gazette) have been a private commercial enterprise.
At one point of time all newspapers were local and mostly individual enterprise. Later on communities
grew and gradually running newspaper business became complex which led to several other forms of
ownership. The Indian print media market is remarkably different from developed countries primarily
on two accounts, the first being print media is still growing unlike western countries and secondly the
Indian market remains highly fragmented in view of the large number of languages. There were over
82,000 publications registered with the Registrar of Newspapers as on 31 March 2011. There are
many newspaper organisations in the country that are owned and controlled by a wide variety of
entities including corporate bodies, societies and trusts and individuals. However nearly 70 per cent
total newspaper circulation is in the hands of few families and units which is a matter of concern. The
various types of ownership pattern of newspapers in India are briefly discussed below.

 INDIVIDUAL OWNERSHIP

It is more prevalent among weekly newspapers where the owner performs the role of editor, printer,
publisher and manager etc. Thereby the owner has absolute control over the paper as he takes all
decisions pertaining to business and editorial policies. The main drawback in such type of ownership
is there is unlimited liability on the owner and therefore such ownership pattern is not adaptable to an
expanding business.

 PARTNERSHIP

As per the Indian Partnership Act, 1932, partnership is “the relation between persons who have agreed
to share profits of a business carried on by all or any of them acting for all”. Also there must be at least
two people involved in a partnership while maximum number of people can go up to 20. In such type
of ownership persons involved make an agreement either oral or written for the purpose of
establishing, purchasing or operating a newspaper. In order to avoid legal troubles it can be registered
with the Registrar of Firms. A partnership deed containing name of business, amount of capital, name
of place of operation of business, duties and powers of partners, appropriation of profits etc. should be
signed. The major advantage in such ownership pattern of newspaper is that responsibilities are
divided as persons with different capabilities and financial standings pool in their money and talent.
While the disadvantage is that each partner runs the risk of becoming liable for an unusually large debt
incurred by any one of other partners.

 CORPORATION

It is the most common form of ownership when it comes to daily newspaper because corporation is
more adaptable to problems of expansion, centralisation or transfer of fractional ownership. A
publisher who owns 51 per cent of the shares in the newspaper and whose powers are defined in the
articles of the corporation may control the policies and obtain from outside sources 49 per cent of the
capital needed for operation.

The benefit of such ownership pattern is that in case of law suit the personal liability of investors is
limited to their share of interest in the corporation. Also, the business of the newspaper is not steadily
36
affected by changes in stock ownership. Transfer of control is flexible and operations can be easily
expanded by increasing capital. While the major limitation is the profit distributed to stock holders are
taxed twice first as income to the corporation and again as dividends to the shareholders.

 GROUP OR CHAIN OWNERSHIP

Group or Chain ownership in media generally means when the same media company owns numerous
outlets in a single medium, a chain of newspaper, a series of radio stations, a string of television
stations or several book publishing companies. There are many publishing groups in India which fall
into this category such as the group headed by the Times of India, Hindustan Times, Indian Express,
Statesman, Ananda Bazar Patrika, Hindu etc.

Newspaper chains can take different forms depending on the point of operation at which cooperation
is dominant. In some cases a holding company controls at least 51 per cent of the shares in each
newspaper. The holding company will have supervision over editorial policies or the company may
allow each newspaper under its banner to formulate its own. Major materials such as newsprint,
machinery and other equipments and supplies are brought through general headquarters. Newspaper
groups are formed without a common holding company but with a chain of command from an elected
set of officers and directors. Publishers have the controlling interest and they manage their own
newspapers and formulate their own policies with the advice of the officer.

 EMPLOYEE OWNERSHIP

Such type of ownership usually develops where a publisher has held the controlling interest and upon
death or retirement wants the paper to be continued under its established policies in the hands of the
associates. It allows employees to buy shares and in some cases the employees own a majority of the
shares and control policies of the newspaper. While such ownership creates high morale on part of
employees the limitation here is opportunities for brining in new people are fewer. Also, length of
employee’ service is likely to get more priority over production abilities.

 VERTICAL OWNERSHIP
Vertical ownership indicates that a newspaper organisation monopolises the production of the
ingredients that go into the making of newspaper. For example a newspaper publisher may own
several hundred areas of forests where the major components of a newspaper namely wood for
newsprints cultivated. It may also own and operate other media, news advertising syndicates and
transportation system. The advantage in such kind of ownership is that it assures newspaper of certain
services and materials needed for its successful operation. Disadvantage is that it widens the
publisher’s interests and responsibilities and therefore the newspaper might get less attention.

 JOINT OPERATION

It is a system of co-operative operation between two or more newspapers of different ownership

within the same premises. Such system is used to reduce maintenance and operation costs Here the
newspapers are produced in the same plant but each has separate news and business offices and its
own reporters, editors, advertising, sales and circulation employees. Also each newspaper formulates
37
its own policy. A joint agreement is reached upon by the parties involved to set forth the financial
obligations of each newspaper or a corporation is formed.

STRUCTURE OF A NEWSPAPER ORGANISATION

For an organisation to run effectively proper division of labour is needed. Generally a newspaper
organisation is huge and there exists separate departments. The chart below shows the organisational
structure of most newspapers.

Fig: TYPICAL NEWSPAPER ORGANISATIONAL STRUCTURE

There are four different departments for all the major newspapers. Each of these departments have
their respective heads who co-ordinate with the chief-editor. The different departments within a
newspaper organisation and their functions have been briefly discussed below:

 EDITORIAL DEPARTMENT

Editorial department is the heart of the newspaper. It deals with the editorial policy, the daily
editorials, features, columns and comments. The head of this department is normally the editor or the
editor in chief. After him are assistant editors, sub-editors, correspondents and reporters. The editor
writes editorials and expert comments. Sometimes depending upon the editorial policy a team of
editorial writers finalise the editorials.

The editor is assisted by lead writers, columnists, cartoonists, photographers, reference librarians and
others to bring out the publication in an effective manner. The reporters and correspondents file the
news and information to the editorial department where they are edited and shaped for publication.

38
Contributions from feature writers, stringers and news writers also have their processing done in the
editorial department.

The sub-editing is done in the editorial department. The copies are edited, headlines are given, and in
the final analysis the publication’s accuracy, attractiveness and reputation are maintained in this
department. Once the articles are received, the editor gets the copies prepared. A lay out plan is
thought of. Here the lay out man, the visualiser and the art director work with the editor. The total
number of pages are carefully laid out for advertisements, articles, the editorial page, readers response
and other stories.

 ADVERTISING DEPARTMENT

If editorial department is the heart of a newspaper organisation , advertising is the bread and butter of
the newspaper. The advertisement manager sees that all available accounts are well serviced and keeps
the advertisement volume at a high level. The advertisement manager collects ads from advertisers and
ad agencies. The ratio of advertisements with the reading material is maintained by this department.
Advertisement revenue comes mainly from three sources:

 Display advertising

 Local or casual advertising

 Classified advertising

Display advertisements are charged in terms of column centimeter on page. Extra rates are charged for
the use of colour. Newspaper advertising is usually sold by the publisher on a run on paper (ROP)
basis. ROP means the advertisement will be placed on the position of paper that is most suitable for
publisher. Newspaper charge extra if the advertiser wants preferred position and for split-run service.
Split-run is the process by which alternate copies of the same newspaper are printed with different
advertisement of the same product.

Local or Casual advertisements comes from local or regional advertisers. Generally such
advertisements are irregular and intended to announce event such as sale, opening of branch or new
business. These advertisers are charged on individual basis.

Classified advertisements as the name implies are categorized under small heads like ‘Property
wanted’, ‘Plot for sale’, ‘Matrimonials’, etc. These advertisements are published without any
conspicuous display on specific pages of newspapers. Such advertisements are grouped by contents
and contain diverse elements. The rates are quoted per word, per column, per line or per column
centimetre.

 CIRCULATION DEPARTMENT

Circulation is the lifeblood of a newspaper. Circulation manager looks after the circulation. The
circulation manager keeps in touch with the trends of the market. The parcels to be sent by post
are packed and dispatched in time. The arrangement of vehicles for the parcels to be sent to the
surrounding areas is done by this unit. The overall sales are watched and measures are taken to
improve the same. The circulation department plans strategies to face the immense competition in
the market. The various activities done by circulation department are:

 Packaging and Dispatch

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  Transportation and Distribution

 Relationship with Agents

 Subscriptions

 Collection of Sales

 Print Order

 Supply of information to Registrar of Newspapers of India (RNI) and Audit Bureau of

Circulation (ABC)

 Promoting Circulation

PRODUCTION DEPARTMENNT

This is the back room of the newspaper in a traditional set up where the newspaper is printed in
line with the editor’s instructions. This department is responsible for transforming the work of
reporters, editors and advertising people into finished product that is newspaper. The department is
headed by General Manager. Numbers of technical personnel look after the various aspects of
production- typesetting, art studio, plate making and printing. Most dailies are now printed by
offset printing. In the earlier days the letters were assembled for producing a newspaper through
hot-metal offsetting.

Now computers are used for typesetting, it is a very neat and clean process. It has eliminated many
operations as proof-reading and sub-editing etc. Offset printing or web offset printing is a
technique in which the inked image is transferred (or "offset") from a plate to a rubber blanket,
then to the printing surface. When used in combination with the lithographic process, which is
based on the repulsion of oil and water, the offset technique employs a flat (planographic) image
carrier on which the image to be printed obtains ink from ink rollers, while the non-printing area
attracts a water-based film (called "fountain solution"), keeping the non-printing areas ink-free.
The modern "web" process feeds a large reel of paper through a large press machine in several
parts, typically for several metres, which then prints continuously as the paper is fed through.

IMPACT OF BROADCAST MEDIA AND IT ON PRINT MEDIA

Television has the advantage of being instant and visual. News channels carry the footage as it
happens. With quantum jump in technology and growth of internet reach newspaper circulation has
been hit in developed countries of the world. However Indian newspaper market continues to register
growth. Today over a dozen English and vernacular dailies have more than a million circulations each.
Over 110 million copies of news dailies are sold every day. India remains one of the handful of
40
markets where print media is registering double digit growth. Out of the top 100 paid dailies in the
world, 19 are from India.

There is no denying the fact that increasing penetration of internet coupled with the growing market
for Smartphone and tablet, online media is gradually making inroads into the lives of Indians.
However the established print media market is going to flourish for years to come. Indian print media
still attract advertising dollars even with the presence of online newspapers. The two reinforce each
other. Therefore the presence of the Internet will not replace newspapers, just as radio and television
did not replace newspapers.

When satellite TV invaded Indian sky in 1995 print medium was growing on all account, 70 per cent
of advertisements used to go to the print. While the print market did not slow down it had to adapt to
changing media environment. The print media accordingly changed its presentation style. In view of
instant reporting of news on TV, the print has to offer more detailed opinion and analysis. At present
almost all major newspapers and magazines have their online presence and many are gradually
entering the online space. While most of the online version is still a copy of the print one, the websites
of the popular newspapers are updated frequently. Infact most of the established print media
organisation have dedicated team devoted to their online section. Also, many print media are investing
on their online version to tap into the growing young market and making it more interactive apart from
reaching to their customers via social networking sites like facebook, twitter etc.

In India, the effect of the broadcast media and IT is still manageable. Newspapers in particular are not
as hard hit as their counterparts in the USA. Indians still prefer to get their news through the
newspaper and with growing literacy the readership is only going to increase. Enthused by the growth
opportunities offered by the Indian market as compared to the saturation in home market demand,
many foreign publishing companies have set up shop in India including Playboy, Maxim,
Cosmopolitan, Golf Digest, Good Housekeeping, the Harvard Business Review, Men's Health, CIO,
PC World, the Journal of Neurology etc.

EMERGING REVENUE PATTERNS FOR PRINT MEDIA

For quite a long time, there was the view that print media have a secure future. Radio, TV failed to
hinder the uninterrupted growth of the print medium. The onset of new media has made quite an
impact on print media. The western print market has dwindled in view of the internet penetration and
growing popularity of online media. In India it will take some time for the new media to put an end to
the success story of print media. However, the increasing trend towards digitisation and
computerisation of the media, along with the explosion of information on the Internet has forced the
print media to come up with new ways to generate revenues. The traditional as well as the emerging
revenue patterns for print media have been briefly discussed below:

Circulation: This is the money brought in from the cover or retail price of a magazine or a newspaper
after deducting trade margins and the cost of the unsold copies. The ratio could change depending
upon circulation, language, price and frequency.

Advertising: About 80 per cent of a publication’s revenue comes from advertising. This is depends
upon language, frequency, price, the market it addresses, and so on. The best way to at advertisement
growth is to look at both rates and volume of ads.

Subscriptions: Inspired by the success of publications like Reader’s Digest, magazines like Outlook,
India Today launched subscription schemes. Initially they were thought to be revenue stream however
today such subscriptions have to be subsidised with gifts. No doubt the scheme brings in cash but there
is huge cost involved in the process of transportation and marketing. So unless the magazine is making
profits subscriptions doesn’t bring dividend. Presently print companies encourage subscription in a
bid to attract advertisers.

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Brand Extension: There are many ways by which a newspaper or magazine extend the same brand to
tap into different revenue streams. Brand extension can be done by event, TV programmes, compact
discs, seminars, roundtable, syndication of content and education. While it may be a costly affair for
small print media houses, many media specialist companied go for this. It could bring in anywhere
between 30 to 50 per cent revenues.

Internet/Mobile Apps: Most Indian newspapers and magazines are going online to tap into the
advertisements there and earn revenues. Infact the big media houses are joining hands with the mobile
companies so that the latter comes up with inbuilt app. While internet and mobile apps are yet to
generate substantial revenue for the print media however the companies are putting effort to make
their online presence by coming up with user friendly manual and applications.

EMERGING MARKETING STRATEGIES IN PRINT MEDIA

As technology continues to develop, change has emerged in the print media business. To keep pace
with both the new and old media, print marketing strategy is growing and evolving alongside the
upsurge of new technology. In view of the competitive media landscape, established media houses as
well as the upcoming ones need to find out the consumer interest and retain their loyalty.

Assessing strengths and weaknesses: An effective print media marketing strategy begins with a
thorough assessment of business and its client. Who are the main competitors? Who are the
customers? What are the specific benefits of product or service?

Identifying audience: Intended audience will both guide the creative work and help in finding out the
right outlets for publication. Is the organisation trying to attract new clients with a new product or
remind past customers of the value it provides?

Setting a timeframe: Is the proposed marketing campaign part of an intensive rebranding effort? Or
an innovative new product is in the offing? A timeline gives campaign momentum throughout its
lifecycle and is an important component of any marketing strategy.

Following up: There has to be a planning to follow up the campaign and assess its success.

In view of the above marketing strategies, the print media houses also indulge in in-depth market
research to find out the nuances of demography as who lives where, who reads what and who browses
which sites. Also, the print media companies are continuously putting up their effort in enhancing their
online presence by making it more interactive.

Social networking sites like Facebook and Twitter has become an integral part of the way print media
reach their customers. Online social media can also be fully integrated with any print marketing
strategy to make it more successful. By adding customer comments and testimonials from social
networking profiles to the print designs, print marketing becomes much more effective.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) IN PRINT MEDIA

Customer Relationship Management is the strategy that a company uses to handle customer
interactions. In an era where the customer has the option of choosing one from many it is imperative
for an organisation to maintain its ties with them. The ever increasing penetration of internet in the day
to day lives has brought changes to the competitive landscape that are drawing away both readers and
advertisers, leaving newspapers and other print media in a struggle to survive. The print media
organisations are trying to find new, workable business models. Much of the focus appears to be
falling onto an entity that hitherto had frequently been little more than an afterthought: the customer.
CRM seems a perfect fit for print media industry. Today companies in the media industry realise that
42
they can use a CRM approach to strengthen their relationships with subscribers, advertisers and
business partners and be an edge above there competition.

According to a 2002 report from the World Association of Newspapers, there are three components of
any CRM strategy: good information, good technology and good people, Implemented well, a good
CRM strategy can bring myriad benefits, including long-term circulation stability through better
customer retention and higher purchase frequency; higher advertising yields; demonstrable ROI
(return on investment) on Internet investments; new product development opportunities; and better-
informed decision making, the report asserts.

In view of the competition from new media, traditional media companies are working hard to retain
their valued customers. It has become essential for media companies to adopt new technologies and
proven best practices to ensure maximum sales and productivity. The change from the profit
orientation of a business to customer centric unit has lead to the surge of CRM inculcation in the
modern business scenario and media has not been left far behind. A CRM application helps media
companies become more successful by better serving the needs of the target audiences and partners.

FOREIGN DIRECT INVESTMENT IN PRINT MEDIA

Foreign direct investment (FDI) is direct investment by a company in production located in another
country either by buying a company in the country or by expanding operations of an existing business
in the country. FDI in India is undertaken in accordance with the FDI policy formulated and
announced by the Government of India. In 1955 cabinet at the centre passed a resolution which
debarred foreign companies from launching Indian edition of their print brand and from investing in
Indian print media sector. The issue of FDI in print media was raked up again during 1990s however it
was in 2002 when the Indian government woke up to the demand of publishing companies. A
resolution was passed by the union cabinet in June 2002 allowing 26 per cent FDI in print media. This
was amended in 2005 to allow FII and further amendments were made in March 2006. The salient
features of FDI in print media are given below:

 Upto 26 per cent foreign direct investment was allowed in news and current affairs
publications, 100 per cent foreign investment is permitted in publishing/printing scientific and
technical magazines, periodicals and journals.
 To ensure that management control does not pass on to foreign hands, the policy mandates
that Indian shareholding should not be dispersed. Under the new regime, the single largest
Indian shareholder should have a significant holding higher than 26 per cent. Also, the
shareholding pattern cannot be changed without the permission of the I&B Ministry and three-
fourths of the Board of Directors should be Indians.
 The editorial control remains in Indian hands as the new policy stipulates that three-fourths of
the key editorial designations should be held by resident Indians. The credentials of foreign
investors is verified on a case-to-case basis by the Home Ministry and other departments
concerned.
 An Indian company is allowed to publish a facsimile edition of a foreign newspaper provided
at three three-fourths of the directors on board of the resultant entity and all key executives
and editorial staff are resident Indians. Furthermore the editions have to obtain prior
permission from Ministry of information and Broadcasting and title has to be registered with
RNI.

 When it comes to syndication arrangements like photographs, cartoons, articles, features from
foreign publications, the approval route is allowed subject to the restriction that the total
material is procured and printed in an Indian publication does not exceed 20 per cent of the

43
 total printed area. Also, it should not include full copy of the editorial page or the front page of
the foreign publication.

Currently there are debates over raising the FDI cap from 26 to 49 per cent. The Indian Newspaper
Society (INS) supports the move to enhance the FDI ceiling pointing out that the domestic print
industry is bucking international trend with significant prospects for growth and required an urgent
influx of funds. However the Press Council of India (PCI), which was asked by the Information and
Broadcasting Ministry to look into the issue of increasing FDI caps in print media, has opined that
there is no need to raise the foreign investment limits.

SUMMING UP

Print media will continue to thrive in the coming years, with saturating Western market many reputed
brands have entered the Indian Territory and will continue to do so. First print media has to adapt and
share the market with broadcast media and now with growing online media, print media companies are
coming up with new marketing strategies. Almost all print media companies have online presence.
CRM and FDI in print media hold key to the growth of print media in the country.

SUGGESTED READINGS

Newspaper Management in India by Gulab Kothari

Handbook of Mass Communication and Journalism by VB Agarwal

Indian Media Business by Vanita Kohli-Khandekar

MMC 203: MEDIA MANAGEMENT

UNIT - 4: BROADCAST MANAGEMENT

UNIT STRUCTURE
4.0 OBJECTIVES
4.1 INTRODUCTION
4.2 ORGANIZATIONAL STRUCTURE
4.2.1 TELEVISION
4.2.2 RADIO
4.3 FUNCTIONS OF VARIOUS DEPARTMENTS
4.4 PROGRAMMING STRATEGIES
4.5 AUDIENCE RESEARCH
4.6 MARKETING PROGRAMMES
4.7 FM RADIO IN INDIA
4.8 LET US SUM UP
4.9 FURTHER READINGS
4.10 ANSWERS TO CHECK YOUR PROGRESS
4.11 PROBABLE QUESTIONS

4.0 OBJECTIVES
After reading this unit, you will be able to –
 explain the organizational structure of Radio and Television
 discuss the functions of the various departments of a media house
 enumerate the concepts of audience research, programming strategies etc.
44
  discuss the FM radio scenario in India
4.1 INTRODUCTION

Media management is an important area of study in Mass Communication. In this unit, we will
discuss about the organizational structure of Radio and Television. We will also enumerate the
functions of the various departments of a media house. Here we will also introduce you to the concept
of the audience research, programming strategies, FM radio scenario in India etc.
4.2 ORGANIZATIONAL STRUCTURE
4.2.1 TELEVISION
Organizational structure of Television is a framework which divides the duties and
responsibilities of the members of the organization. The organizational structure varies in different
organizations according to their strategies and environmental circumstances. Generally a television
channel comprises of General Manager who has supreme power in the organization. He is held
responsible for the collection and selection of news stories, production, sales, promotion, technicalities
etc.

The News department specializes in collecting, editing and presenting news. There are news
directors, editors, producers, assistant producers, reporters, anchors, photographers etc. Everyone is
endowed with some particular duties and responsibilities in the organization.

The production department presents the news after it is prepared suitably for broadcast.
Production department often includes a director, technical director, producer, audio operator, master
control operator and camera operators. The producer initiates, coordinates, raises funds, contacts and
arranges distributors, etc. The producer takes the responsibility from initiating and developing to the
completion of a particular project.
The advertisement department of a TV station generates revenue for the channel by selling
time to the advertisers. It coordinates good relationships with companies or organizations who offer
advertisements for broadcast. Advertisements are the main source of revenue collection which helps
the station to stay afloat. General sales manager or director of sales usually leads the team to bring in
new advertisers and retain the older ones.
The promotions department promotes the television with the help of advertisements. The
promotions department is responsible for informing the audience about the program schedule using
announcements in the station and through other media, such as newspapers and radio. In order to
retain the brand name in the minds of the audience, this department maintains the station’s identity by
providing a brand image. It is done by on-air promos, community programmes or advertisements
placed in other media.
The technical or engineering department looks after the technical aspect of the station. The
complex and digitalized equipments and techniques are handled by this department. The department
consists of technical or chief engineer who leads the technical staff in executing their duties. Apart
from these duties, he also looks for new advanced innovations and techniques to be used in the station.

45
Building supervisor, camera operator, master control operator, photographer, videographer, tape room
operator etc. are also part of the technical department.
4.2.2 RADIO
The organizational structure of a radio station depends on its size, range of operations and
ownership. Usually, Director-General or Station Manager (in case of regional radio station) holds the
supreme power and responsibility of a radio station. The Director-General is assisted by an Engineer-
in Chief, Director-General (News), Additional Deputy Director-General for Programme,
Administration and Security etc. Different departments of a radio station are Programme Wing,
Engineering wing, News Wing, Administration and Accounting Wing, Audience Research Wing etc.
The Programme Wing is accountable to the production and presentation of programmes in a
radio station. It can be divided into various programme units like women unit, children unit, talks,
entertainment unit, youth programme unit, science programme unit etc. There are also the Programme
Coordination unit and Public Relations unit to coordinate the programmes smoothly. It consists of
programme executives, assistants who are further assisted by script writers, reporters etc. A pre-
determined schedule is prepared which is executed by the radio anchors.
The Engineering wing controls and coordinates all the technical aspects of the radio station.
The station engineer is the head of the technical department who is assisted by Assistant Station
Engineer, Assistant Engineer, Senior Engineering Assistant, Engineering Assistants and Technicians.
They are responsible for the maintenance and operation of the technical facilities available at the
station.
The News Wing is headed by a Joint Director or News Editor who is assisted by sub-editors
and news reporters. For news reporting and news gathering there are staff correspondents, supported
by a number of part-time correspondents or stringers. The news editing is done by the editorial staff
while translation and reading of news is done by translators and news readers respectively.
Administration and Accounting wing looks after the administration and accounting
department of the organization. This is headed by an Administrative Officer assisted by a head clerk,
accountant and a number of assistants.
In most of the radio stations, there is an audience research wing which evaluates the feedback
of the audience for the station. There is an audience research officer with a number of field
investigators who conducts the research. Such a research is important to know the effectiveness of the
radio programmes. It also helps to design programmes according to the tastes and preferences of the
audience.
4.3 FUNCTIONS OF VARIOUS DEPARTMENTS
A media house is divided into a number of departments for the execution of different functions. For
instance, a newspaper organization has departments like editorial, advertising, circulation, production
and other business works. Likewise radio and television organizations also have these departments to
deal with different trades. Following are the departments in a newspaper organization:

Editorial Department:

46
A daily newspaper needs more members in the editorial department than a weekly or monthly
newspaper, magazine or any other publication. The editorial department functions in gathering of
news, selection of news, lead articles and features, editing of the collected news and features, editorial
writings etc. An editor is assisted by a number of sub editors, resident editors, managing editors,
correspondents etc. However the chief editor holds the responsibilities of the editorial staff. The chief
editor allocates different duties to the members of the organization. He is also responsible for
collection as well as selection of news and features. He is also accountable for editing the news,
articles, features and their interpretation. The resident editors are liable to the particular edition of a
newspaper which comes out from that specific city. Many reputed newspapers have resident editors
according to their editions.

Advertising Department:

Newspapers to a great extent depend on advertisements for revenue collection. In fact, almost 80
percent of revenue of a newspaper is provided by the advertisements. The advertising department
therefore holds a pivotal role in the industry. It generates revenue by selling space in the newspaper. In
case of electronic media, the advertising department sells time to the advertisers and collects revenues.
The department has to maintain cordial relationship with different business men or agencies to retain
them as regular advertisers. There can be two types of advertising in a newspaper namely, display
advertising and classified advertising.

Display advertising can be national or local. National advertising refers to products promoted on a
nation-wide basis while local advertisements are used to promote local or regional products. National
advertising usually carries brand names or retail chains. Display advertisements are charged according
to the circulation of the newspaper. The more it circulates, the greater is the price. However, size,
color, advertising frequency are other parameters to charge the display advertisements. Display
advertisements are placed in the position of a newspaper according to the aptness and satisfaction of
the advertiser. Classified advertisements, on the other hand are published in a particular section of the
newspaper. They are categorized under different small heads in small sizes. These advertisements are
written by individuals wishing to advertise goods and services. There is another type of advertising
known as local or casual advertising. Local advertisers, on an irregular basis advertise to announce
some special events such as sale, new openings, initiating a new service or product etc.

Circulation Department:

Though advertisements account to most of the revenue collection of a newspaper, circulation

department is also responsible for generating its sales. Moreover, it is the circulation figures of the
newspaper which motivates or attracts the advertisers. The more it circulates, the higher is the rate of
advertisements. The increasing number of circulation means the newspaper is able to gratify the needs
of the general public. However, factors like population and social conditions influence the circulation.
The circulation department has multiple functions like packaging and dispatch, transportation and

47
distribution, relationship with agents, subscriptions, collection of sales, print orders, promotion of
circulation, supply of information to Registrar of Newspapers and Audit Bureau of Circulation etc.

Production Department:

Newspaper production, from press to distribution is handled by the production department. The
department is responsible for the finished product of the collected news, articles, advertisements etc.
All aspects of production including typesetting, art studio, plate-making and printing are looked after
this department.

ACTIVITY

Visit a television house and try to understand its various departments and
their functions. Prepare a report on your study.

CHECK YOUR PROGRESS – A

1. Who comprises the News department of a television house?

--------------------------------------------------------------------------------------------

2. What is the main function of Ad department of TV?

------------------------------------------------------------------------------------------

3. Who takes care of technical aspects of a radio station?

------------------------------------------------------------------------------------------

4.4 PROGRAMMING STRATEGIES

4. Name the functions of the circulation department.
Radio and Television often schedule their programmes in a daily, weekly or season-long
--------------------------------------------------------------------------------------------
schedule. Some broadcasters change their schedules regularly to build an audience for a new
programme as well as to retain the existing audience or compete with other broadcasters’ programmes.
Programming strategies are very important to design and improvise programmes according to the
preferences of the audience. It helps to captivate new audience and retain the older ones. Programming
strategies can be defined as the minute planning of the transmission as what and when to broadcast
according to the preferences of the audience covering every minute of broadcast time. They are
designed to achieve some particular goals and objectives. Some of the scheduling strategies are as
follows:
a) Day-parting: Day-parting is the practice of dividing the schedule of the day into various parts
so as to air appropriate programmes for the audience. The programmes are designed to suit the
target audience targeted in that particular time period.
b) Theming: The broadcasting schedule often consists of a special theme known as theming. In
this technique, a number of shows, even a whole week of shows during certain time period
revolve around a similar theme.
48
c) Stripping: The broadcasters often run a syndicated television series everyday in a week. The
viewers need not wait an entire week to see the next episode of a series as they would with
first-run network series.
d) Stacking: It is a technique used to develop audience flow by grouping together programmes
with similar appeals to keep the viewers glued from one programme to another.
e) Counter programming: Counter programming is used during the time period when it is filled
with programmes whose appeal is different from the programme of different genre or which
appeals to different demographic.
f) Bridging: Bridging is used when the viewer attempts to change a channel to different one
during the junction point. It happens when most of the channels stop programmes in the
evening breaks. This can be done by advertising the next programme or a programme already
underway and some appealing broadcast at the junction point, etc.
g) Tentpoling: In this kind of programming, the programmers bank on a well known series
having much appeal amongst the audience that they can place two unknown series on either
side. The central programme having much strength can run the other two programmes.
h) Hammocking: This is a unique technique used by the broadcasters to air an unpopular
programme between two popular ones with the aim to make the viewers watch/listen to it.
Public service broadcasters use this technique to promote serious but valuable content.
i) Cross-programming: This technique is used for interconnecting two programmes. This can be
achieved by dragging a storyline over two episodes of two different programmes.

4.5 AUDIENCE RESEARCH

The systematic study of any audience for any purpose is known as audience research. Such a
research is very important in organizations like Television and Radio. Audience Research is mainly
carried out to find out the radio listenership and TV viewership. Other organizations know their
audience and the numbers approximately except in the case of radio and TV. Newspapers or
magazines can estimate the numbers as well as their characteristics in the number of copies they sell. It
is because the coverage of radio and television is not limited to geographical boundaries. It is not
possible to evaluate the number of listeners or viewers in such cases. Therefore, audience research is
executed in order to estimate the target audience. It studies the characteristics of potential audiences
categorized in two groups that is demographic and psychographic. Demographic characteristics
include age, education, gender, marital status, occupation, income and geographic location. On the
other hand, Psychographic characteristics describe the individual’s lifestyle, activities, interests,
opinions and are virtually unlimited in nature. It includes reactions to media content, preferences for
media vehicles and perceived images of media companies and spokespersons

Audience research provides feedback to the broadcasters. It helps to identify the programmes
which are popular among the masses, the messages transmitted if understood in the right way, whether
the target audience is reached etc. It is not only an essential tool for information campaigns and

49
educational programmes, which directly support the development process, but also helps the
professional broadcaster reflect the needs and preferences of audiences in programme productions.
4.6 MARKETING PROGRAMMES
In order to promote or market programmes of radio or television, the broadcaster has to grab
the attention of viewers by applying various tactics. Advertisements in the form of fliers can be used to
market programmes. Attractive colours, pictures or symbols can be used in the fliers to attract the
viewers. The fliers can be stuck on streetlights, walls and notice boards. One can also promote the
programmes with the help of social networking sites which has gained much popularity in the present
scenario. Current pictures, information or clippings from the show/programme could be updated from
time to time. The programme can have a website providing all the information about the programme.
Websites related to the programme can be visited where comments or attractive messages can be
posted enticing the viewers to watch the same.
4.7 FM RADIO IN INDIA
The growth of public service broadcasting in India is important vis-à-vis the private
broadcasting. From the mere 18 transmitters at the time of independence, the number of transmitters
went up to 380, which comprises of 149 medium waves, 54 short waves and 177 frequency
modulations (FM) of All India Radio by December 2010. According to the MIB annual report, the
number of radio stations went up from 6 in 1947 to 237 by October 2010 providing coverage to 99.18
percent of the population spread over 91.85 percent area of the country. On the other hand, from a
total of 21 private FM radio operating in 12 cities under phase-I policy guidelines for FM radio
broadcasting, the number has increased to 245 FM stations spread over 85 cities in the country. The
size of Indian Radio Industry stood at Rs. 8 billion in 2009 and is projected to grow by 16 percent to
reach the size of Rs. 16 billion by next five years.
Hence, the government is proposed to allow 806 new FM stations in the third phase of policy
guideline. The government has received 825 applications for community radio licenses. Though the
first community radio was launched in 2004 by Anna University, Krishna Kanta Handiqui State Open
University launched the regular broadcasting of Jnan Taranga 90.4 CRS only on 20th November, 2010,
as the first of its kind in North east India. So far, 111 community radio stations are operational in the
country.

CHECK YOUR PROGRESS – B

1. What is ‘theming’?
----------------------------------------------------------------------------------------------

2. What is audience research?

----------------------------------------------------------------------------------------------

3. In order to promote or market programmes of radio or television, the

broadcaster has to grab the attention of viewers by --------------------------
4. The government is proposed to allow ------------------------- new FM
stations in India in the third phase of policy guideline.
4.8 LET US SUM UP
50
  Media management is an important area of study in Mass Communication.
 The organizational structure of a radio station depends on its size, range of operations and
ownership. Usually, Director-General or Station Manager (in case of regional radio station)
holds the supreme power and responsibility of a radio station.
 A media house is divided into a number of departments for the execution of different
functions. For instance, a newspaper organization has departments like editorial, advertising,
circulation, production and other business works. Likewise radio and television organizations
also have these departments to deal with different trades.
 Programming strategies can be defined as the minute planning of the transmission as what and
when to broadcast according to the preferences of the audience covering every minute of
broadcast time. They are designed to achieve some particular goals and objectives.
 The systematic study of any audience for any purpose is known as audience research. Such a
research is very important in organizations like Television and Radio. Audience Research is
mainly carried out to find out the radio listenership and TV viewership.
 In order to promote or market programmes of radio or television, the broadcaster has to grab
the attention of viewers by applying various tactics. Advertisements in the form of fliers can
be used to market programmes.
 The size of Indian Radio Industry stood at Rs. 8 billion in 2009 and is projected to grow by 16
percent to reach the size of Rs. 16 billion by next five years.

4.9 FURTHER READINGS

 Mass Communication and Media Management; Swati Chauhan, Navin Chandra
 Media Management; B.K. Chaturvedi

4.10 ANSWERS TO CHECK YOUR PROGRESS

CHECK YOUR PROGRESS – A
1. News directors, editors, producers, assistant producers, reporters, anchors, photographers etc.
2. The advertisement department of a TV station generates revenue for the channel by selling
time to the advertisers.
3. The Engineering wing
4. packaging and dispatch, transportation and distribution, relationship with agents,
subscriptions, collection of sales, print orders, promotion of circulation, supply of information
to Registrar of Newspapers and Audit Bureau of Circulation etc.

CHECK YOUR PROGRESS – B

1. The broadcasting schedule often consists of a special theme known as theming. In this
technique, a number of shows, even a whole week of shows during certain time period revolve
around a similar theme.
2. The systematic study of any audience for any purpose is known as audience research.
3. applying various tactics
4. 806
51
4.11 PROBABLE QUESTIONS

1. Discuss the organizational structure of a television channel.

2. Enumerate the importance of audience survey.
3. Explain the status and significance of FM radio in India.
References:

 Organizational Structure of a TV Station | eHow.com

http://www.ehow.com/facts_5744951_organizational-structure-tv-station.html)
 Handbook of Journalism and Mass Communication; Vir Bala Aggarwal, V.S. Gupta
 Global Sourcebook of Mass Communication and Media Management, Part 1. Authored by:
Swati Chauhan, Navin Chandra
 Media Management; B.K. Chaturvedi

MMC 203: MEDIA MANAGEMENT

UNIT-5: ADVERTISING INDUSTRY
UNIT STRUCTURE
5.0 OBJECTIVES
5.1 INTRODUCTION
5.2 STRUCTURE OF ADVERTISING AGENCY
5.3 FUNCTIONS OF THE VARIOUS DEPARTMENTS
5.4 ADVERTISING AGENCY – CLIENT – MEDIA INTERFACE
5.5 BRAND IMAGE
5.6 BRAND EQUITY
5.7 BRAND IDENTITY
5.8 BRAND DIFFERENTIATION
5.8.1 GENERIC DIFFERENTIATION
5.8.2 PRE-EMPTIVE DIFFERENTIATION
5.9 BRAND IMAGE AND MANAGEMENT
5.10 TELEVISION RATING POINT
5.11 LET SUM UP
5.12 PROBABLE QUESTIONS
5.13 FURTHER READINGS

5.0 OBJECTIVES
After studying this unit, you should be able to:

 Understand the working of an advertising agency

 Know Agency - Client - Media Interface
 Understand the importance of Brand Image
 Examine the major advertising decision and ways to take these decisions

5.1 INTRODUCTION
We shall briefly discuss about the status of advertising industry in this section. Advertising industry in
India has evolved from being a small-scale business to a full-fledged industry today. This industry has
bloomed to its fullest be it the creative aspect, capital involvement or the number of personnel
involved. The advertising industry in a very short span of time has carved a niche for itself and has
52
widened its presence globally. The ever increasing advertising industry has led to the growth of media
in India with some astonishing pieces of work in the recent past. This could be experienced in the
deluge of advertisements we see in our TV Set or in and around us.
Advertising agencies have furthered the growth of advertising industry. They have come a long way
from being small and medium sized industries to becoming the powerhouse of media business. It
should be kept in your mind that B Dataram & Co. which was established in 1905 was the first
advertising agency in India. Lintas, Ogilvy and Mather, McCann Ericsonn, Redifussion, Leo Burnett
are some of the top notch advertising agencies in India. Advertising agencies in the country today
handles both national and international projects. This is primarily because of the reason that the
industry offers commendable services that include client servicing, media planning, media buying,
creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and
public relation services.
Activity 1

Study the television ads of at least three different products. What are the variations in advertising
timing patterns in each case? What reasons do you think justify the timing patterns in each case?
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5.2 STRUCTURE OF ADVERTISING AGENCY

Advertising agency is an independent organization which is staffed by technical and creative people
who make advertisements. A modern advertising agency offer specialized services, skills and
experience which are required to produce an effective advertising campaign. It has copywriters, media
experts, researchers, TV producer, account executives etc. You should know that advertising agency
could be of any shapes and sizes. It could be small boutique shops with a few people or could be big
agencies with hundreds of people. Different advertising agencies will have different organizational
structure. Advertising personnel’s work together and develop advertising strategies for its clients.
Advertising agency provides different marketing promotions such as brand promotion, research,
Public Relations, direct marketing, recruitment advertising, Industrial advertising etc.
An advertising agency is a business dedicated to creating, planning and handling advertising for its
clients. An agency can also handle overall marketing and branding strategies and sales promotions for
its clients. Typical ad agency clients include businesses and corporations, non-profit organizations and
government agencies. Agencies may be hired to produce single ads or, more commonly, ongoing
series of related ads, called an advertising campaign. An independent business organization composed
of creative and business people who develop, prepare and place advertising media for sellers for their
goods and services.
We shall now discuss the structure of Advertising agency.

53
The structure of an advertising agency can differ depending on the type of client it serves. An
established agency contains five different departments’ viz. account management, account planning,
creative, media planning and human resources.

Did you know?

 Ad agency started as a space broker in a newspaper by Volney B Palmer in
Philadelphia in 1841
 B Dataram & Co. which was established in 1905 is the first ad agency in India

The following is a typical structure of a big advertising agency.

CEO

Supp. Depts.
Creative Ac. Handling
Finance
Production
HR
Co-ordination

Creative Dir

Media

Ac. Dirs
Films Dept. Media Planners Ac. Planners
Creative Team Media Operations
(Copywriter, Visualiser) (Film Exe.)
Media Buying
Ac. Executive
Language Dept.
(Language Writers)

5
Fig : Structure of an Ad Agency

(Source: Craft of Copywriting, June Valladares)

Let us understand the structure of an advertising agency. Usually a typical advertising agency would
consist of the following different departments who work together to give the best output.
 Account Services
 Account Planning
 Creative
 Finance & Accounts
 Media Buying
 Production
These departments may vary from company to company. We shall discuss about the functions of these
departments in the next section.
5.3 FUNCTIONS OF THE VARIOUS DEPARTMENTS
It should be borne in our mind that advertising industry serves three principal groups namely sponsors,
the media and advertising agency. Before we discuss about the functions of the various departments
we should know the functions of an Advertising agency. The following are the major functions of an
advertising agency.
54
  Provides media information such as availability of time and space
 Creative skills such as campaign planning and appeal planning
 Research such as brand preference data
 Agency is staffed by people who are knowledgeable about media, copywriting, art etc
 Agency study products ,markets, competitors and promotional problems of their clients
We shall now understand the different departments of an advertising agency we had discussed in our
earlier section.
Account Services
The account service department in an advertising agency has account executives, account managers
and account directors. This department is responsible for interacting with the clients. For example ITC
is a client of Lintas. This department is the link between the various departments within the agency
particularly the clients. You should know that a good account services team is essential for good
advertising campaign. Briefing the client is one of the main duties of account services department.
Account Planning
This department is staffed with people who have research capabilities. Often a mix of researchers and
account managers, the account planning department provides consumer insights, strategic direction,
research and help in planning the advertising campaigns.
Creative
This department is the backbone of any advertising agency. It's the lifeblood of the business, because
the creative department is responsible for the success of any advertisement. The roles within the
creative department are many and varied and these usually include the following.
 Copywriters
 Art Directors
 Visualisers
 Production Artists
 Creative Directors
You should keep in your mind that each of the above has distinctive responsibilities but each of them
work in collaboration. In many agencies, copywriters and art directors are paired up who working as
teams. Everyone within creative services reports to the Creative Director. It is his or her role to steer
the creative product, making sure it is on brand, on brief and on time.

Finance & Accounts

This is another very important department in an advertising agency. This department is responsible for
handling payment of salaries, incentives, vendor costs, travel, day-to-day business costs and
everything else that is required in doing business.
Media Buying
This department procures the time and space required for the advertising campaign. This includes TV
and radio time, outdoor (billboards, posters), magazine and newspaper insertions, internet banners and
anywhere else an ad can be placed for a fee. This usually involves close collaboration with the creative
department. This department is usually led by a media director.
55
Production
The production department plays an important role in the agency. They are consulted to explore the
feasibility of executing the concepts. The creative and account team collaborate with the production to
get the campaign produced on the allotted budget. This can be anything from getting illustration
produced, hiring typographers and TV directors to produce the advertising campaign. This department
works in association with the media department.
Let us also know that in some of the agencies the traffic is also a part of the production department. It
is the job of traffic to get each and every job done through the different stages of account management,
creative development, media buying and production in a set timeframe. Traffic will also ensure that
work flows through the agency smoothly and ensure that deadlines are followed and also maintain
healthy client relationships. In a way the traffic keeps the agency's heart beating.
Activity 2

Visit an advertising agency and find out the following:

a) The functions performed by the agency
b) The flow of work, from acceptance of brief to release of campaign
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5.4 ADVERTISING AGENCY – CLIENT – MEDIA INTERFACE

The following factors should be kept in our mind during Agency – Client – Media Interface:
 Agency avoids ad a close substitute competing product
 Client too avoids engaging the service of another competing agency
 Agency receives green signal from the client for all the expenses incurred on his advertising
 Agency keeps the Media commission for itself and the client undertakes to pay the bill
promptly
 If the media grants any cash discount, it is passed on to the client
 Agency is not taken to task for media lapses in terms of scheduling and positioning

56
 Client- Agency- Media : Interface

Agency

Client Media

Agency

• HTA
• O&M
• Redifussion
• Lintas
• Leo Burnett
• JWT
6

Client

• Hindustan Lever
Lintas
• ITC

• Tata Sky
• Air Tel
• Taj Hotel Resorts & Palace Redifussion
• Tata Motors
• Indian Oil

• Asian Paints
• Cadbury
• Center Shock
• Clinic Plus
• Goli Ke Hajmoli O&M
• Hutch
• Huggies
• Prudential ICICI
• Pulse Polio
• Sprite 7

Agency- Media: Interface

 Agency is responsible for payment to the media
 Media follow a uniform policy for all the agencies
 Media do not alter the advertising material without prior consent of the agency
Selection of an Ad agency – The following factors can be considered while selecting an advertising
agency

 Creativity
 Sound track record
 Account executives must have the ability to understand the clients’ problem
E.g. Hindustan Lever is an Account for Lintas

57
 o ITC is an account for Lintas
 Credentials
 Personal equation of Client with agency
 Ability and presentation skills

Clients prefer to invite presentations for Campaigns of new products and then award the campaign to
the agency who they think has made the best presentation.
5.5 BRAND IMAGE

Brand image is the overall impression of the product or company in the consumers’ mind. Consumers
develop various associations with the brand and based on these associations, they form an image of the
brand. For instance Mercedes Benz is associated with elegance. Tata Safari is associated with
reliability and robustness. Brand image conveys emotional value and not just a mental image. There
could be numerous factors that could determine brand image of the product or the company. Brand
images can be strengthened through advertising, packaging, word of mouth publicity, other
promotional tools, etc. We shall discuss about this in later sections. The idea behind brand image is
that consumers do not just purchase a product but also the image associated with it.

We should know that brand image develops and conveys the product’s character in a unique manner
different from its competitor. The brand image consists of various associations in the consumers’ mind
such as attributes and benefits. Brand attributes are the functional and mental connections with the
brand that the customers have. They can be specific or conceptual. Benefits are the rationale for the
purchase decision. There are three types of benefits i) Functional benefits – differential advantage over
other products ii) emotional benefits – how the product makes you feel better than others, and iii)
rational benefits - why do you believe that the product is better than the others. In short brand
attributes are consumers overall assessment of a brand.
Let us now understand the characteristics of brand image.

 Goodwill from the nobility of the brand generates over a period of time to upscale its value as
a corporate asset
 Imagery that associates with this ‘value-identity’ of the brand is its equity in relation to others
in the market
 Every brand creates a specific identity for itself by the sum total of all impressions or imprints
that it makes in the consumers mind
5.6 BRAND EQUITY

Brand equity is a concept in marketing which describes the value of having a well-known brand name,
based on the idea that the owner of a well-known brand name can generate more money from products
with a brand name than from products which are lesser known. Brand equity is also called as brand
value. Marketing researchers believe that brands are one of the most valuable assets a company has, as

58
brand equity is one of the factors which can increase the financial value of a product. Elements that
can be included in the valuation of brand equity include but not limited to:
 Changing market share
 Profit margins
 Consumer recognition of logos and other visual elements
 Brand language associations made by consumers
 Consumers' perceptions of quality
 Other relevant brand values
Let us keep in our mind that brand equity is strategically crucial, but very difficult to be quantified.
Marketing experts have developed tools to analyze this asset, but there is no universally accepted way
to measure it. It becomes even more troublesome as marketing professionals and academics find a
connection between quantitative and qualitative equity values. Quantitative brand equity includes
numerical values such as profit margins and market share, but fails to capture qualitative elements.
Overall, most marketing practitioners take a more qualitative approach to brand equity because of
these issues.
5.7 BRAND IDENTITY
Brand identity develops from the source or the company. Brand message is tied together in terms of
brand identity. The general meaning of brand identity is “who you really are?” The outward
expression of a brand including its name, trademark, communications, and visual appearance is brand
identity. Because the identity is assembled by the brand owner, it reflects how the owner wants the
consumer to perceive the brand.
Now let us understand the difference between brand identity and brand image. This is in contrast to the
brand image, which is a customer's mental picture of a brand. The company will seek to bridge the gap
between the brand image and the brand identity. However, over time, a product's brand identity may
acquire new attributes from consumer perspective. Therefore, it is very important to check the
consumer's perception of the brand. Brand identity needs to focus on real characteristics of the value
and brand promise being provided and sustained by the company.
5.8 BRAND DIFFERENTIATION
We have already discussed about brand is in our earlier sections. Now let us understand the concept of
Brand differentiation. Brands need to be differentiated from other brands and there are various ways of
doing this. The brand differentiation is basically brought by positioning of brands. Positioning is the
place which the brand makes in the minds of the customers or in market. Brand differentiation can also
be achieved by unique selling position of the brand and for increasing the brand value and brand
equity, brand differentiation is very important.
What are the Benefits of Differentiation? A product or service with unique and appealing attributes
allows a firm to:
 Command a premium price
 Increase unit sales
 Build brand loyalty

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  Competitive Advantage
We all know that in today's global market, competition is very high. Therefore, every company strives
to differentiate itself from the others. Therefore, companies have to bring in new ideas of
differentiating themselves from others. An efficient brand strategy can create a successful brand which
will differentiate the company from its rivals.
Companies have to promote new branding ideas so that it can change the brand image with the market
needs which is varying from time to time. The companies should improve their products and services
day by day to satisfy the customers. They may offer some innovative services. Therefore, their brand
name will spread over quickly to the national and as well as international audiences. Some companies
use attractive logos and catch lines. These are very useful in differentiating one brand from the other.
But designs and lines should be developed on the basis of the products and services offered.
5.8.1 GENERIC DIFFERENTIATION
We have discussed about brand differentiation in our earlier section. Let us now understand how
brands could be differentiated. It can have:
1. Generic Differentiation
2. Pre-emptive Differentiation
What is a generic product? A product that is sold under a general name rather than a brand name is a
generic product. For instance many medicines and drugs that you buy are generic products. Besides
packaged food are commonly offered to shoppers as generic products. Generic products are
distinguished by the absence of a brand name. These belong to a certain general class. These kinds of
products are not marketed with a brand name, trademark or other distinguishing feature that separates
itself from others.

Did you know?

Generics emerged during the recession of the 1970s as a way to help consumers save money.
“Those products were pretty grim and designed as an economic alternative,” says Tod Marks,
senior editor at Consumer Reports magazine.
Generic differentiation can be built around product features such as the function it provides. The most
basic form of brand differentiation is achieved through what is called as the brands USP. This can be
built around the products features, quality, durability, reliability, design and style.

5.8.2 PRE-EMPTIVE DIFFERENTIATION

Some of the products have similar features and attributes but it takes a leader to pre-empt and take
advantage in branding their product on one of the features. Let us know the features of Preemptive
differentiation.
 Claim with assertion of superiority
 By being first to claim something the others could claim, you “preempt” them from saying it
 The claim needs to be stated creatively
 Could work well where competitive advertising is generic or uninspired
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5.9 BRAND IMAGE AND MANAGEMENT
In this section we shall learn about Image management. It should be borne in our mind that image is
earned not bestowed. No business imagery finds an automatic entry into the perceptual space of the
consumer. It happens when there is a concerted effort.
Brand management is about creating and sustaining the brand. Brand management includes managing
the tangible and intangible characteristics of brand. In case of product brands, the tangibles include the
product itself, price, packaging, etc. While in case of service brands, the tangibles include the
customers’ experience. The intangibles include the emotional connections the consumers have for the
product or service. It is essential to manage all brands and build brand equity over a period of time.
Here comes importance and usefulness of brand management. Brand management helps in building a
corporate image. A brand manager has to oversee overall brand performance. A successful brand can
only be created if the brand management system is competent.
5.10 TELEVISION RATING POINT
Television Rating Point more popularly known as TRP is an audience measurement technique that
gained popularity in television to indicate the popularity of a television program in a particular
channel. It gives an index of the choice of the people and also the popularity of a particular channel.
Television ratings provide information about TV viewing habits of individuals. This helps advertisers
and corporate media planners in selecting the right media. For calculation purpose; a device is attached
to the TV set in a few thousand viewers' homes for judging purpose. These numbers are treated as
sample from the overall TV owners in different geographical and demographic sectors. The device is
called as People's Meter. It records the time and the programme that a viewer watches on a particular
day. Then, the average is taken for a 30-day period which gives the viewership status for a particular
channel.
Indian Television Audience Measurement (INTAM) is an electronic rating agency functioning in
India. INTAM uses two methodologies for calculating TRP. First is frequency monitoring, in which
'people meters' are installed in sample homes and these electronic gadgets continuously record data
about the channel watched by the family members. 'People meter' reads the frequencies of channels,
which are later, decoded into the name of the channels and the agency prepares a national data on the
basis of its sample homes readings.

Did you know?

TRP was introduced in 1986 to assess the viewership of DD programmes by IMRB.
5.11 LET SUM UP
You have learnt about the evolution of advertising agency in this unit. The unit explores the client-
agency- media relationships, describes the division and flow of work in an ad agency. Further, you
have also learned about the structure of an Ad Agency, functions of various departments. We have
also discussed about Brand Image, Brand Equity, Brand Identity and Brand Differentiation. Television
Rating Point has also been discussed in this unit. As you have come to know about them it will help
you a lot in preparing yourself properly for the job in an advertising agency. Further, you will also be
able to understand and learn the practical aspect about the profession while working in an agency.
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5.12 PROBABLE QUESTIONS

1. Discuss the role of an advertising agency in modern day marketing

2. What are various departments of an advertising agency?
3. Discuss client – agency – media interface
4. What is TRP? Why is this so important in advertising business?

5.13 FURTHER READINGS

1. Valladares, June. The Craft of Copywriting
2. Jethwaney, Jaishri. Advertising
3. David Ogilvy, Ogilvy on Advertising
4. Batra, Myers, Aaker, Advertising Management
5. Debashis Pati, Branding concepts and process
6. Jeffkins and Yadin, Advertising (fourth edition)

MMC 203: MEDIA MANAGEMENT

UNIT-6: ENTREPRENEURSHIP
UNIT STRUCTURE
6.0 OBJECTIVES
6.1 INTRODUCTION
6.2 MEDIA ENTREPRENEURSHIP
6.3 CONCEPT OF ENTREPRENEURSHIP
6.4 CHARACTERISTICS OF ENTREPRENEURS
6.5 MEDIA ENTREPRENEURIAL SCENARIO IN NORTHEAST
6.6 UNDERSTANDING PROBLEMS AND PROSPECTS
6.7 LET US SUM UP
6.8 FURTHER READING
6.9 ANSWERS TO CHECK YOUR PROGRESS
6.10 PROBABLE QUESTIONS

6.0 OBJECTIVES
After reading this unit, you will be able to –
 explain the concept of entrepreneurship and media entrepreneurship
 discuss the characteristics of entrepreneurs
 enumerate the media entrepreneurial scenario in Northeast India

6.1 INTRODUCTION
Media entrepreneurship is “the creation and ownership of a small enterprise or organization whose
activity adds at least one voice or innovation to the media marketplace. It is now an important area of

62
media management. In this unit, we will discuss about the concept of Entrepreneurship and Media
Entrepreneurship. We will also discuss the characteristics of entrepreneurs. Here we will also
introduce you to the media entrepreneurial scenario in northeast India.

6.2 MEDIA ENTREPRENEURSHIP

Entrepreneurship is the process of exploring the opportunities in the market place and
arranging resources required to exploit these opportunities for long term gain. It is the process of
planning, organizing and assuming opportunities. It has assumed great importance for accelerating
economic growth in the developing countries. It promotes capital formation and creates wealth in
country. According to Paul Reynolds, entrepreneurship scholar and creator of the Global
Entrepreneurship Monitor, "by the time they reach their retirement years, half of all working men in
the United States probably have a period of self-employment of one or more years; one in four may
have engaged in self-employment for six or more years. Participating in a new business creation is a
common activity among U.S. workers over the course of their careers."
Entrepreneurship in India occurs in far more encompassing and far reaching ways than in
developed countries, and could therefore be far more complex. The renowned economist, T.N.
Srinivasan quoted as, “India has been an entrepreneurial society…we had the entrepreneurial skill but
suppressed it for too long a time… and now it is thriving.” Entrepreneurship adds significant value to
the economy as well as involves risk taking, being innovative as well as using knowledge and skills to
set up new ventures or diversify from existing ones.
Media entrepreneurship means opening of new avenues in the media industry. The new media
enterprises have to serve not only the society but also to seek sustainable ways to do proficient,
economical and advantageous ventures that fully leverage new technologies. The media houses have
to maintain the nature and quality of news without compromising with benefits. With growing
competition and endless opportunities, there is more demand and interest for news than ever. New
efficiencies have to be exploited in order to gather, analyze and distribute news and serve the people
better.

ACTIVITY
Think of an entrepreneur of your locality and prepare an article on him and his
entrepreneurial venture.

CHECK YOUR PROGRESS - A

1. What do you understand by the term entrepreneurship?

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2. What is the condition of entrepreneurship in India?

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3. What is media entrepreneurship?

6.3 CONCEPT OF ENTREPRENEURSHIP
J.A. Timmons says in his book “The Entrepreneurial Mind”, entrepreneurship means different
things to different people. Conceptually and in practice, the term hints of no stereotypical model. Yet
it’s very etymology – derived from the French ‘entreprendre which literally means, ‘to undertake’ –
indicates the minimum characteristics of an entrepreneur.

Entrepreneurship is vibrant assertion of the facts that common people can be developed with
change in their outlook and their ideas can be converted into action through an organized and
systematic program for entrepreneurs. The concept of entrepreneurship was first established in the
1700s and thus the meaning of the word evolved. Economist Joseph Schumpeter (1883-1950) focused
on how the entrepreneur’s drive for innovation and improvement creates upheaval and change. He
viewed entrepreneurship as a force of “creative destruction.” The National Knowledge Commission
defines Entrepreneurship as: ‘Entrepreneurship is the professional application of knowledge, skills and
competencies and/or of monetizing a new idea, by an individual or a set of people by launching an
enterprise de novo or diversifying from an existing one (distinct from seeking self employment as in a
profession or trade), thus to pursue growth while generating wealth, employment and social good’.
The concept of entrepreneur is associated with three elements namely risk bearing, organizing
and innovating. An entrepreneur starts a new venture with some risks to create something new with an
organized plan to make significant profits. High motivation for achievement of goal and insatiable
drive and persistent enthusiasm helps to achieve success in new enterprises. Entrepreneurship helps in
stimulating economic growth as well as providing employment opportunities to the people.
The NKC report says that entrepreneurship has been ‘embedded in the Indian genius and is a
part of its tradition’. To quote the renowned economist, T.N. Srinivasan, ‘India has been an
entrepreneurial society…we had the entrepreneurial skill but suppressed it for too long a time… and
now it is thriving.’ The entrepreneurial spirit is an ongoing characteristic of India’s history,
particularly visible in a number of communities engaged primarily in trading. Traditionally, the
Entrepreneurship of such communities is facilitated principally by the successful use of informal
‘entrepreneurial ecosystems’ and interdependent business networks. Further, there is also a rich
tradition within the Indian diaspora, spanning the past several hundred years, whose spirit of enterprise
is legion.

6.4 CHARACTERISTICS OF ENTREPRENEURS

The entrepreneur who implements ‘new combinations of means of production’ plays a crucial
role in disturbing the status quo through innovation — or ‘creative destruction’ — and thereby

64
becomes an agent of change (NKC). As such, the ‘dynamic equilibrium’ achieved by a constantly
innovating entrepreneur could generate the conditions for:
a. increasing opportunities for employment (comprising various competitive skill sets);
b. additional wealth creation;
c. introduction and dissemination of new methods and technology; and
d. overall economic growth.
It is in the creation of more wealth, and in the constant innovation from prevailing to the next best
practices, that the significance and importance of Entrepreneurship lies.
The characteristics of an efficient entrepreneur are propensity to take risk, leadership quality,
business enterprise, organized and systematic plan, innovative, sense of competitiveness, technical
expertise, determined and patient, stand in any case of adversity, covert any situation to opportunity
etc. He has to identify business opportunities and mobilize necessary resources to make an
opportunity. An entrepreneur has to make his own decisions and envisage new ideas and novel
solutions. He has to invest money wisely with a positive business plan. Cooper, Woo, & Dunkelberg
argue that entrepreneurs exhibit extreme optimism in their decision-making processes.
A successful entrepreneur must possess managerial perspective by accepting the challenges
and make the business flourish. He has to imagine a gigantic dream of an ideal venture and execute an
organized and creative plan to achieve the dream. He has to visualize the whole plan and seek the
opportunities to convert the dream into reality. An entrepreneur has to invest his money and make
maximum profits from the business. He should possess technical knowledge about production
techniques and marketing and the ability to gather financial and motivational resources. He has to
communicate and maintain good relationship with the people and adapt new changes that come the
way. There should be a dedicated and hard working team to generate profits from the money invested.

6.5 MEDIA ENTREPRENEURIAL SCENARIO IN NORTHEAST

Media entrepreneurship in North East started in 1846 with the advent of the first Assamese
magazine ‘Arunodoi’. It was initiated by the Baptist Missionary Press in Sibsagar. The tag line of the
magazine was “It is devoted to religion, science and general intelligence”. However it cannot be
termed as the birth of media entrepreneurship as the Press in North East India was mission oriented.
The main motto of the reigning Christians, i.e. both the Baptist and American missionaries, was to
propagate Christianity in different parts of the region. Arunodoi was first of its kind to disseminate
Assamese literacy in its purest form. Media entrepreneurship could not be in its booming state since
the main objective of the press was to widen the reach of Christianity, though in the later period they
tried to disseminate information. Secondly, the main purpose of most of the national newspapers was
to achieve freedom from the British rule. Likewise, the newspapers in North East also strived to
contribute towards the freedom struggle of the country. Therefore, the real sense of entrepreneurship
in media started after attaining freedom from the British rule, that is in the year 1947.
In the last few decades, a number of newspapers are being published from different parts of
North East but Guwahati is regarded as the media hub. A good number of newspapers, periodicals,
magazines are published from different publication houses. To name a few is the Tribune Group which
65
has The Assam Tribune, Dainik Asom, Asom Bani, Goriyashi etc. Similarly, Sadin publication had a
tabloid named Sadin. Later, a daily ‘Asomiya Pratidin’ started in the end of 80’s, which is now the
largest circulated Assamese daily of the state. It has four editions published from Guwahati,
Dibrugarh, Bongaigaon and North Lakhimpur of Assam. An English daily named North East daily,
Nandini, a popular woman magazine and Satsori, a literary magazine are other works of the
publication house. Another renowned publication house of the North East region is the G.L
Publication. It has been the pioneer in media entrepreneurship. This publication house has newspapers
like Amar Asom, The North East Times, Meghalaya Guardian, Purbanchal Prahari etc. It publishes
newspapers in English, Hindi and Assamese languages. Another publication house is the Agradoot
Publication which initiated a weekly newspaper named Agradoot. Later it was transformed into a bi-
weekly (twice a week) newspaper and now it is a daily renamed as Dainik Agradoot. Outside
Guwahati, Janambhumi Press Pvt. use to publish a number of newspapers in the upper region of
Assam or Upper Assam. Initially print media dominated Upper Assam as compared to other regions of
the state. Newspapers like Dainik Jugosankha, Sonar Kachar, Dainik Prantojyoti etc. emerged from
the Barak Valley.
Broadcasting scenario was dominated by public broadcasting like Doordarshan and All India
Radio till the end of the last century. From the beginning of the century, broadcasting entrepreneurship
started with Positive Television Private Limited launching the first private satellite channel North East
Television or NE TV. This company also initiated NE Hi Fi, an entertainment channel and
consecutively the first FM station of North East, Radio Ooo La La. After the launch of this channel,
broadcasting entrepreneurship started in North East. Pride East Entertainment Pvt. Ltd. launched News
Live, a 24 hour satellite news channel and Rang, which is an entertainment channel. Ramdhenu, an
exclusive music and life style channel is also under this head. The broadcast industry was intervened
by a number of satellite channels like DY 365, News Time Assam, Prime News, Frontier TV etc.
Similarly, FM broadcasting began with regional origins like Gup Shup and Radio Ooo La La. Radio
Ooo La La had two other stations in Itanagar and Shillong. National FM companies have also its base
in the region with the advent of Red FM and Big FM.

CHECK YOUR PROGRESS – B

1. ------------------------------------------------ focused on how the

entrepreneur’s drive for innovation and improvement creates
upheaval and change.
2. What are the characteristics of an efficient entrepreneur?
3. Media entrepreneurship in North East started in 1846 with the advent
of the first Assamese magazine -------------------------.
4. Name the publications of the GL Publication group.

6.6 UNDERSTANDING PROBLEMS AND PROSPECTS

66
 Richard Cantillon quoted, “An entrepreneur is a person who pays a certain price for a product
to resell it at an uncertain price, thereby making decisions about obtaining and using the resources
while consequently admitting the risk of enterprise”. An entrepreneur has to invest money at his own
risks. He has to take independent decisions in establishing a new venture. Risk taking is a major
problem for the entrepreneur as there can be either profit or loss in the business. The entrepreneur has
to be courageous enough to handle any of the results. Entrepreneurship requires team work but lack of
commitment and involvement of the team can lead to failure. Market potentiality, that is demand of
the product and viability of the industry in the market is a matter of concern for new entrepreneurs.
Woman entrepreneurs face more problems as compared to man. In the patriarchal society, woman face
problems like finance, priorities of her family, lack of marketing, entrepreneurial aptitude, heavy
competition, access to modern technologies etc.
The entrepreneurs can however join together to make small and efficient groups to start a new
venture. New agencies and organizations have come forward to facilitate entrepreneurs in new
ventures. Rural banks, national and international organizations as well as government provide funds to
efficient entrepreneurs, thus promoting growth and development of the nation. Government has
especially taken several measures to encourage women entrepreneurs to set up small scale and micro
enterprise. As a result of the new gesture among women to participate in economic activities, there has
been a phenomenal growth in the number of women owned business units in the state.
6.7 LET US SUM UP
 Media entrepreneurship is “the creation and ownership of a small enterprise or organization
whose activity adds at least one voice or innovation to the media marketplace. It is now an
important area of media management.
 Entrepreneurship in India occurs in far more encompassing and far reaching ways than in
developed countries, and could therefore be far more complex.
 Media entrepreneurship means opening of new avenues in the media industry. The new media
enterprises have to serve not only the society but also to seek sustainable ways to do
proficient, economical and advantageous ventures that fully leverage new technologies.
 The concept of entrepreneurship was first established in the 1700s and thus the meaning of the
word evolved. Economist Joseph Schumpeter (1883-1950) focused on how the entrepreneur’s
drive for innovation and improvement creates upheaval and change.
 The characteristics of an efficient entrepreneur are propensity to take risk, leadership quality,
business enterprise, organized and systematic plan, innovative, sense of competitiveness,
technical expertise, determined and patient, stand in any case of adversity, covert any situation
to opportunity etc.
 Media entrepreneurship in North East started in 1846 with the advent of the first Assamese
magazine ‘Arunodoi’.
 Broadcasting scenario was dominated by public broadcasting like Doordarshan and All India
Radio till the end of the last century. From the beginning of the century, broadcasting

67
 entrepreneurship started with Positive Television Private Limited launching the first private
satellite channel North East Television or NE TV.
 Market potentiality, that is demand of the product and viability of the industry in the market is
a matter of concern for new entrepreneurs. Woman entrepreneurs face more problems as
compared to man.

6.8 FURTHER READING

 Entrepreneurship in India- National Knowledge Commission
 Handbook of Media Management and Economics- Alan B. Albarran, Sylvia M. Chan-
Olmsted, Michael O. Wirth

6.9 ANSWERS TO CHECK YOUR PROGRESS

CHECK YOUR PROGRESS – A
1. Entrepreneurship is the process of exploring the opportunities in the market place and
arranging resources required to exploit these opportunities for long term gain. It is the process
of planning, organizing and assuming opportunities.
2. Entrepreneurship in India occurs in far more encompassing and far reaching ways than in
developed countries, and could therefore be far more complex. The renowned economist, T.N.
Srinivasan quoted as, “India has been an entrepreneurial society…we had the entrepreneurial
skill but suppressed it for too long a time… and now it is thriving.”
3. Media entrepreneurship means opening of new avenues in the media industry.

CHECK YOUR PROGRESS – B

1. Economist Joseph Schumpeter
2. The characteristics of an efficient entrepreneur are propensity to take risk, leadership quality,
business enterprise, organized and systematic plan, innovative, sense of competitiveness,
technical expertise, determined and patient, stand in any case of adversity, covert any situation
to opportunity etc.
3. Arunodoi.
4. Amar Asom, The North East Times, Meghalaya Guardian, Purbanchal Prahari etc.

6.10 PROBABLE QUESTIONS

1. What do you mean by Entrepreneurship?

2. Define the term media entrepreneurship. Discuss the major entrepreneurial activities in the
recent media industry in India.

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