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The global Broadcasting Industry has gone through major technological advances in the recent past, with features such as IPTV, VOD (Video on demand), Mobile TV and DVR’s (Digital Video Recorders etc), becoming increasingly common. At the same time, the future of advertisements, which constitute a large proportion of the broadcasting revenue, has become uncertain with the advent of technologies that allow ad skipping. The leading players in the market are forced to adapt technology, though they are unsure of the potential of these technologies in medium-long term future. the This paper attempts to explore the possible future for Broadcasting Industry in the next 5-10 years, when business models involving user generated content will be common. Digital cinema/(via satellites)/ , specific advertisement for niche audiences, multiple platforms for ads, prompt feedback for content and effective metrics for measuring ROI all seem to be a reality. No longer would people say ―Advertisements work half of the time, but we don’t know which half‖. While some players have developed in-house capabilities for embracing the same, most have outsourced it to leading solution providers such as IBM, Siemens etc. IT solution providers can look at these offerings, and develop a short term vision of back end work and medium long term projections of hi-tech technology solutions to grab the opportunity, such as the mandate ―Digital TV switch by 2009‖, in the USA.
Broadcasting Industry, which includes Radio Stations, Television (Cable, Satellite, Broadcast, and Interactive), Internet (online content), online music, film production and distribution, has seen a huge number of technological changes in the last few years Digital video recorders (DVR’s) are becoming increasingly common allowing advertisements to be skipped easily and hence forcing a rethink of the traditional advertising model for earning revenue. Due to availability of high speed internet, video streaming is becoming increasingly popular. Most big players in the US have started providing paid online subscriptions of popular series. Video on mobile has also gained momentum in the developed world. Also, blogs like MySpace have changed the business model by adding a new dimension of paid content (i.e. user generated content). Technology is only expected to grow faster in the future. Perhaps, we are in the era where the definition of the Broadcasting industry is being redefined due to such immense changes in path breaking innovations. Because of the huge gamut of technological innovations in the field, it is perhaps not even possible to understand each of them individually. No major player can afford not to restructure its business by aligning with
Media Broadcasting latest technologies. At such a time, most IT solution providers (especially firms such as IBM, Accenture, Infosys, Wipro and Satyam) have started looking at broadcasting as a key revenue generating area. Along with conventional verticals such as Banking, Insurance, Finance, Healthcare and Telecommunications, most key Tier 1 and Tier 2 IT players in India have launched a specialized Broadcasting (or Media and Entertainment ) vertical in the last few years. However, firms are not still sure how they can possibly leverage these rapidly changing technological changes to their benefit by aligning the changes with their fundamental business model. This paper tries to address some of those issues and suggests few areas of critical importance for these firms. Television broadcasters operate studios and facilities for the programming and transmission of programs to the public. These establishments also produce or transmit visual programming to affiliated broadcast television stations, which in turn broadcast the programs to the public on a predetermined schedule. Programming may originate in their own studios, from an affiliated network, or from external sources. Broadcasting is the distribution of audio and/or video signals which transmit programs to an audience. The audience may be the general public or a relatively large sub-audience, such as children or young adults. Copyright, Designs and Patents Act of 1988 defines a broadcast as
"A transmission by wireless telegraphy of visual images, sounds, or other information which is capable of lawful reception by the public or which is made for presentation to the public". Thus, it covers radio, television, and telephones.
There are several broadcast television systems in use in the world today. An analogue television system includes several components: a set of technical parameters for the broadcast signal, a system for encoding color, and possibly a system for encoding multi-channel audio. In digital television, all of these elements are combined in a single digital transmission system.
Analogue television system
All but one analogue television system began life in monochrome. Each country, faced with local political, technical, and economic issues, adopted a color system which was effectively grafted onto an existing monochrome system, using gaps in the video spectrum (explained below) to allow the color information to fit in the channels allotted. In theory, any color system could be used with any monochrome video system, but in practice some of the original monochrome systems proved impractical to adapt to color and were abandoned when the switch to color broadcasting was made. All countries use one of three color systems: NTSC, PAL, or SECAM.
Ignoring color, all television systems work in essentially the same manner. The monochrome image seen by a camera (now, the luminance component of a color image) is divided into horizontal scan lines, some number of which make up a single image or frame. A monochrome image is theoretically continuous, and thus unlimited in horizontal resolution, but to make television practical, a limit had to be placed on the bandwidth of the television signal, which puts an ultimate limit on the horizontal resolution possible. When color was introduced, this limit of necessity became fixed. All current analogue television systems are interlaced; alternate rows of the frame are transmitted in sequence, followed by the remaining rows in their sequence. Each half of the frame is called a field, and the rate at which fields are transmitted is one of the fundamental parameters of a video system. It is related to the frequency at which the electric power grid operates, to avoid flicker resulting from the beat between the television screen deflection system and nearby mains generated magnetic fields. All digital, or "fixed pixel", displays have progressive scanning and must de interlace an interlaced source. Use of inexpensive de interlacing hardware is a typical difference between lower- vs. higher-priced flat panel displays (PDP, LCD, etc.).
Media Broadcasting All movies and other filmed material shot at 24 frames per second must be transferred to video frame rates in order to prevent severe motion jitter effects. Typically, for 25 frame/s formats (countries with 50 Hz mains supply), the content is sped up, while a techniques known as "3:2 pull down" is used for 30 frame/s formats (countries with 60 Hz mains supply) to match the film frames to the video frames without speeding up the play back.
Viewing technology Analog television signal standards are designed to be displayed on a cathode ray tube (CRT), and so the physics of these devices necessarily controls the format of the video signal. The image on a CRT is painted by a moving beam of electrons which hits a phosphor coating on the front of the tube. This electron beam is steered by a magnetic field generated by powerful electromagnets close to the source of the electron beam. In order to reorient this magnetic steering mechanism, a certain amount of time is required due to the inductance of the magnets; the greater the change, the greater the time it takes for the electron beam to settle in the new spot. For this reason, it is necessary to shut off the electron beam (corresponding to a video signal of zero luminance) during the time it takes to reorient the beam from the end of one line to the beginning of the next (horizontal retrace) and from the bottom of the screen to the top (vertical retrace or vertical blanking interval). The horizontal retrace is accounted for in the time allotted to each scan line, but the vertical retrace is accounted for as phantom lines which are never displayed but which are included in the number of lines per frame
NTSC has been modified by the Advanced Television Standards Committee to support an anti-ghosting signal that is inserted on a non-visible scan line. For digitally recorded material it becomes necessary to rearrange the sub frame order when conversion takes place from one standard to another.Media Broadcasting defined for each video system. which can be used to transmit other information. where the teeth are spaced at line frequency and concentrate most of the energy. though this option is not currently used on analogue transmissions. Since the electron beam must be turned off in any case. such as test signals or color identification signals. Widescreen All 625 line systems incorporate pulses on line 23 that flag to the display that a 16:9 widescreen image is being broadcast. For more information. the space between the teeth can be used to insert a color subcarrier. The temporal gaps translate into a comb-like frequency spectrum for the signal. used mostly for tale text and closed captioning: PAL-Plus uses a hidden signaling scheme to indicate if it exists and if so what operational mode it is in. Tele text uses hidden signaling to transmit information pages. see over scan in television. the result is gaps in the television signal. Interlacing Main article: Interlace In a purely analogue system. frame order is merely a matter of convention. NTSC Closed Captioning signaling uses signaling that is nearly identical to tale signaling. Over scan Television images are unique in that they must incorporate regions of the picture with reasonable-quality content that will never be seen by some viewers. 5 . Hidden signaling Broadcasters later developed mechanisms to transmit digital information on the phantom lines.
but in some cases separate aural and visual antennas can be used. Modern digital processing circuits have achieved a similar effect but using the front porch of the video signal. audio is encoded using a number of schemes which (except in the French systems) are independent of the video system. The original 405 line system (System A) used positive modulation and suffered considerably from even modest amounts of interference as it was interpreted as synchronizing information. In almost all cases. Most current video systems were defined to use negative modulation since this system has a far greater immunity to noise. Audio In analogue television. enabling narrower channels to be used. it is relatively easy to arrange the receiver Automatic to only operate during sync pulses and thus get a constant amplitude video signal to drive the rest of the TV set. In positive modulation. Modulation Given all of these parameters. Positive modulation was chosen for no reason other than the render French TV sets incapable of receiving 'unsuitable' broadcasts from neighboring countries Another advantage of negative modulation is that since the synchronizing pulses represent maximum carrier power. This was not possible for many years with positive modulation as the peak carrier power varied depending on picture content. The French (older) system C and the current system L transmissions continue to be so plagued. Most commonly. The principal systems are NICAM. the result is a mostly-continuous analogue signal which can be modulated onto a radio-frequency carrier and transmitted through an antenna. the sound portion of a broadcast is invariably modulated separately from the video. All analogue television systems use vestigial sideband modulation. the maximum luminance value is represented by the maximum carrier power. is the choice of whether vision modulation is positive or negative. or more generally multi-channel. in negative modulation. minor by comparison. Stereo. standard wideband frequency is used for the standard monaural audio. This reduces the bandwidth of the transmitted signal. the maximum luminance value is represented by a zero carrier power. the audio and video are combined at the transmitter before being presented to the antenna. 6 .Media Broadcasting Image polarity Another parameter of analogue television systems. the exception is systems used by France. which are AM. a form of amplitude modulation in which one sideband is partially removed.
Thus France adopted system L on UHF only and abandoned system E. it was VHF only and remained black & white until its shutdown in 1984 in France and 1985 in Monaco. suppressed the upper sideband rather than the lower—befitting its status as the oldest operating television system to survive into the color era (although was never officially broadcast with color encoding). It was tested with SECAM in the early stages. A2 Stereo. all analogue TV broadcasting has been shut down in 2003–2005 in favor of reallocating the frequencies to digital broadcasting in the DVB-T standard. (See Digital television transition-article for further details. most notably the United Kingdom. but only NICAM may be used with the French AM audio systems. notably in and around Berlin and some other major cities.ueberallfernsehen. unlike all the other systems. as NTSC-A. and BTSC (also known as MTS). and production equipment was designed and ready to be built.Media Broadcasting which uses a digital audio encoding. Analogue signals are still on air in the non-colored areas of the map. which multiplexes additional audio channels on the video carrier. notably Zweikanalton.) 7 . See http://www. In a few countries. had the British government not decided to harmonize with the rest of Europe on a 625-line video standard. its uses FM instead of AM so as to reduce noise and mixing with other sounds Evolution For historical reasons. and as of 2007 a few smaller countries have already done so. some countries use a different video system on UHF than they do on the VHF bands. All three systems are compatible with monaural FM audio. Note that the British System A. Its 819 scan lines were almost high definition even by today's standards. German Stereo or IGR Stereo). in which case each audio channel is separately modulated in FM and added to the broadcast signal. Like the British system A.de/ for a map of coverage areas and near-future switchovers. double-FM (known under a variety of names. The rest of the country is scheduled to follow suit by 2010. The French System E was a post-war effort to advance France's standing in television technology. television broadcasting on VHF has been entirely shut down. but later the decision was made to adopt color in 625 lines. System A might have survived. In some urban areas of Germany. Many other countries are planning a shutdown of analogue broadcasting. implemented in Britain as PAL-I on UHF only. System A was tested with all three color systems. West German Stereo.
M/s Tata Sky Ltd. M/s Reliance Big 8 . he/she can continue to use the same unit anywhere in India.e. DD DIRECT+ is India's first and only Free To Air (FTA) Direct-To-Home Service being provided by Prasar Bharati.a public service broadcaster. from 1 TV channel in 2000 to 273 TV channels in 2007 (till 31. The number of private satellite TV channels has grown astronomically over the years. DTH provides subscribers the advantage of geographical mobility meaning thereby that once a customer purchases DTH hardware.2007). and M/s Sun Direct TV Pvt. there are 110 million TV households in India. Ltd. Apart from Prasar Bharati .Media Broadcasting Current scenario Broadcasting Scenario in India On the television industry side. The number of non-news & current affairs TV channels has grown from 0 to 115 and that of news & current affairs TV channels has grown from 1 to 158. M/s Dish TV India Ltd. there are 132 million radio sets in the country. At present. out of which 70 million are cable and satellite homes and rest 40 million are served by the public broadcaster. DTH Service Direct-To-Home (DTH) Service refers to distribution of multi-channel TV programmers in Ku Band by using a satellite system for providing TV signals direct to subscribers' premises.12. i. Similarly. this annual growth rate is projected to be 22% and on the radio side it is projected to be at the rate of 28% over the next five years. Doordarshan.
and M/s. Indian Media And Entertainment industry is poised to register a tremendous growth in the coming years. M/s Bharti Tele media Ltd. Piracy and violation of intellectual property rights have posed a major threat to the Media And Entertainment companies worldwide. in the applicant company not to exceed 49%. Media and Entertainment industry is one of the most flourishing sectors in India. 9 . The Indian Media and Entertainment industry grew from Rs 35. etc. have also been granted license for operating DTH service.300 corers to Rs 43. Given the high rate of economic growth and technological developments. Lack of quality content has also become a major area of concern for the Media And Entertainment companies in India.Media Broadcasting TV Pvt. Ltd. including FDI/ NRI/ OCB/ FII. India is witnessing a revolution in this sector with the emergence of new technologies. Bharat Business Channel Ltd.700 corers during the year 2005-06. and within the foreign equity.. India is emerging as one of the world's largest markets for digital and mobile music. The eligibility conditions provide for total foreign equity holding. Entry of private sector companies and increasing FDI and FII. India is emerging as a global destination for the Media And Entertainment players because of the following reasons: The number of channels is increasing each day. the FDI component not to exceed 20%. Many companies are taking initiatives to set up digital theatres. It also provides that applicant company must have Indian management control with the majority representatives on the Board as well as Chief Executive of the Company being resident Indians. The concept of crossover movies and crossover audience is also gaining momentum. India's large pool of creative skills and growing domestic market for animation and special effects industry. multiplexus. The Indian Media and Entertainment industry is also making its presence felt in the global market with its movies and music. The liberalization of the media sector has opened up the gates of opportunities and growth.
which is expected to touch 9. 244.7 billion in 2008. growth in the E&M industry is set to decelerate to 8. along with China.0% in the total ad industry pie. In the Television pie. television distribution is projected to garner a share of 60% in 2013.3% during 2004-08.0% in 2013. While annual average growth in nominal GDP was 14.‖ After registering a growth of around 16. On the other hand. resulting in the overall compound annual growth rate for the period 2009-13 of 10. The relative share of the television content industry is expected to remain constant at 4%.Media Broadcasting PricewaterhouseCoopers in its ―Indian entertainment and media outlook 2009" report has estimated that the Indian Entertainment & Media industry will return to double digit growth in 2010 .2% in 2009 after having posting a CAGR of close to 17. overall E&M growth in 2008 slowed. 10 . This is expected to continue in 2009. 420. For the remaining years of the forecast period. PricewaterhouseCoopers said. double digit growth is expected to return over the forecast period with India recording one of the highest growth in the E&M industry as well as in advertising spending in the world. reflecting weaker overall economic conditions. television advertising industry is projected to command a share of 41.0 billion by 2013.0% in 2009. The overall television industry is projected to reach Rs. from an estimated Rs. leader India Entertainment and Media practice.4% as economic conditions are expected to gradually improve. the industry will continue to grow at increasing rates. This has largely been influenced by a marked slowdown in advertising spending. ―The slowdown in growth requires the E&M industry to revisit their short term business plans and strategies. Timmy Kandhari. Television industry is projected to continue to be the major contributor to the overall industry revenue pie and is estimated to grow at a stable rate of 11.4% cumulatively over the next five years.6% compounded annually over the period 200408. However.48% over the period 2004-08. India’s E&M industry witnessed remarkable growth in recent years having consistently outpaced growth in domestic GDP. Growth rates will increase in 2010 to 10.5%. having increased from a present share of 39.
Rs 25 billion).6% for the next 5 years. Radio advertising industry is projected to grow at a CAGR of 18% over 2009-13. 5 billion in 2008. Animation.8% in 2013 from a current level of 6.213 billion in 2013 from the present Rs. more than double its present size. Its share in the total ad pie is expected to go down marginally to 6.9% in 2008.6% over the next five years. Magazine publishing is expected to grow at a higher rate of 6.In terms of share of ad pie.5% as compared with newspaper publishing which is expected to grow at 5. reaching to Rs. which is projected to become almost twice its current size in 2013 (i. Given the trends of increased internet usage. 42. reaching Rs.the key growth driver for the music industry over the next five years will be digital music. Emerging segments . 8.6% over the period 2009-13. Print media industry is projected to grow by 5.5 billion in 2013 from its current size of Rs.3 billion in 2008. 107 billion in 2008. The share of the online advertising too is projected to grow from 2.8% to 5. and its share is expected to move from 16% in 2008 to 60% in 2013. Within digital music.2% in the next five years.e. The estimated size of Out of home (OOH) advertising spend is Rs 15 billion in 2008. The relative shares of the film industry are expected to shift marginally from the traditional revenues to the new emerging revenues.3% in 2008 to 5. 20 billion in 2013 from the present Rs. internet advertising is projected to grow by 32% over the next five years and reach an estimated Rs. it is projected that the radio advertising industry will be able to increase its share from 3. The relative shares of newspaper publishing and magazine publishing are not expected to change significantly and are expected to remain the same at around 87% in favour of newspaper publishing. reaching to Rs.Media Broadcasting Film industry is projected to grow at a CAGR of 11.5% in 2013 of the overall advertising pie. 162 billion in 2008. 19 billion in 2013 from the present Rs. gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 22% to Rs.. 11 . 185 billion in 2013 from the present Rs. mobile music will continue to increase its share and maintain its dominance.
3% in 2008. from Rs.5% in 2013 from 2. we are also experiencing increased fragmentation of media and its audiences. As a consequence its share of total advertising spends will increase to 5. in the film and television space.3 billion in 2008. Timmy Kandahar added. This will result in a structural change in the advertising world with advertising becoming more targeted. 216 billion in 2008. they will first need to embrace the digital future. radio. concluded. the growth in advertising spending has slowed after a period of robust growth.Media Broadcasting 15.19 billion in 2013. Global Entertainment and Media Leader PricewaterhouseCoopers.1% on an overall basis). Marcel Fenez. interactive and accountable. filmed entertainment. 8.9% to 41. This is as true in India as in the other important entertainment and media markets globally. emerging segments like music. as well as contribution from international co-productions. animation. growing at a compound rate of 32%. The share of the print advertising spend is expected to decline from 47.7% in the earlier year. the other large contributor in the segment is expected to grow marginally from 39% to 41%.‖ While on-line is currently the smallest component of total advertising spend. over the previous year which is much lower than the growth rate of 20.6 billion. domestic demand will create the fillip in its growth. overall advertising spending recorded a growth of 11. there has never been such an exciting time for the industry The onset of increased digitization will expose the industry to new business models and dynamics. Owing to the economic slowdown. to Rs. it will experience the highest growth over the next five years. out-of-home advertising and sports. These are – television.3%. In the animation space. In 2008.‖ This 2009 edition of the PricewaterhouseCoopers report ―Indian entertainment and media outlook 2009’ has in-depth forecasts and analysis of eight industry segments. In order for each of the industry’s diverse segments to participate fully in this growth.5%. Overall spending expected to increase from the present size of Rs. Television. gaming. 366 billion in 2013 (a cumulative growth of 11. The next highest growth over the period 2009-13 is expected by the radio industry at 18% – estimated to reach Rs. internet advertising. ―Against the backdrop of volatility in advertising spending. 12 . ―Though operating in challenging and fast-moving times. print media comprising newspaper and magazine publishing.
trade publications. institutional knowledge and global resources of knowledge and excellence were applied to review and adjust those values wherever required. PwC’s professional expertise. The same is also supposed to be followed by all C&S TV channels. 13 . the content on television can be broadly divided into five different categories: Commissioned Original Programming .Films / Trailers / Music Videos. government agencies. A look at the way the industry functions shows that broadcasters are largely self-censored and generally follow a certain content code that has been set by the broadcaster itself or its international parent Network. both the codes. The offences under Cable Television Network Regulation Act being non-cognizable. and other industry sources. to create a forecast scenario. the government of Tamil Nadu has authorized collectors and sub-collectors for this purpose. For e. a specific complaint has to be made by an officer authorized by the state governments. For instance.Fiction. For regulatory purposes.Media Broadcasting The report has been prepared on the basis of information obtained from key industry players. the Cable Television Network Regulation Act and the DD Code are not stringently followed by all broadcasters. Feedback from key industry players was subjected to a rigorous validation process to ensure that it was consistent and conformed to the industry feel. In India. all production houses follow the programming codes and norms set by the respective broadcasters. The performance trends in different segments of the industry were analyzed and an attempt was made to identify the underlying factors. However. This includes all original fiction shows which are commissioned by broadcasters and assigned to various production houses. Models were developed to quantify the impact of each of these factors. Independent Content . News Programming and Advertising. there is a Cable Television Network Regulation Act. while Hong Kong has a Family Viewing Policy which clearly specifies the hours meant for family viewing. The entire process was then examined for internal consistency and transparency vis-à-vis prevailing industry wisdom. Star India follows the Star TV Hong Kong code and currently certain other broadcasters follow the programming codes of the country they uplink from . wherein certain codes have been prescribed for programmers and advertisements appearing on any Cable & Satellite TV Network. Commissioned Original Programming . There is a Doordarshan code which is mandatory for all Doordarshan Kendras. trade associations.g.Non Fiction. Singapore has a Censorship Review Committee.mainly Hong Kong and Singapore. Generally.
specially the remixes such as Chadti Jawaani. The TV News business requires a responsible content and programming code which should be followed by all News Channels compulsorily. Gemini and English movie channels such as Zee MGM. However. there have been cases of News Channels spreading rumours. There is a referral body for all 14 . swimwear and the like only after 11:30 pm.Media Broadcasting The moral brigade has at times raised concerns about the growing amount of adultery. MTV. English Movie channels such as HBO. a lot of movie channels and regional language channels air late night B grade movies and movies with a lot of 'sex'. religious misrepresentation. The channels which air such movies include South Indian channels such as Sun TV. communal harmony etc times. some music channels have started a system of internal checks. Star Movies follow international codes and clearly specify the Age Group for whom the movie is suitable to view. However. Zee Music. Kaanta Laga etc. ITV. Currently. News Programming is a highly sensitive TV programming area as news content has the power to affect vital sensitive issues such as national security. Channel [V]. A lot of international shows airing on channels like AXN such as Hot N Wild. Former I&B minister Sushma Swaraj had passed strictures against FTV. This includes all Non Fiction programming such as Format Shows. ETC. Notably. recently. However. Fashion and Lifestyle shows etc. growing alcoholism.which today have the most objectionable and vulgar content. Channel [V] has set up an internal audit system called S & P (Standards & Practices) which checks all the music videos before they air on the channel. these videos are aired regularly throughout the day on all music channels including Southern Spice. and STAR World such as Temptation Island have been found objectionable as well. or overplaying instances of violence or communal disharmony and misreporting on certain issues. Talk Shows. A lot of objections have been raised against the influx of raunchy music videos. Fashion and lifestyle channels such as Trendz and FTV have always invoked strong protests from social awareness groups and political parties. Talent Hunts. Though. increased violence. Music Based Shows. Reality Shows. there is no censorship applicable on Music Videos . This was later solved and a solution arrived wherein FTV agreed to show objectionable content such as lingerie shows. all TV Channels are required to air only those movies that have a valid Censor certificate.
For eg: Manikchand Oxyrich Mineral Water. The Brands promote their affiliate products which still carry the mother Brand Name. and WILLS Sport. McDowell’s No 1. these products heavily use surrogate forms of advertising and are still visible across TV. What the industry needs is an independent body which could be set up under or by the Indian Broadcasting Foundation (IBF).The body can be called the Television Standards Council of India and it will be run by a board comprising of eminent responsible professionals from the Television and Media business.Fiction. DD has a strict DD Advertising Code which clearly specifies the kind of Advertising which can be accepted across the DD network. News. The smaller niche channels. However. like music. The advertising Standards Council of India (ASCI) which is an independent body under the aegis of the (AAAI) Advertising Agencies Association of India. Advertisement. Carriage of Music Videos and some other outside content. this body is basically. wherein consumers can write in their grievances regarding any particular advertisement campaign. The guidelines and rules set up by the TSCI would have to be followed by all broadcasters compulsorily.Media Broadcasting advertising produced in India. an addressable body only. The TSCI should set up a uniform content and programming code which would cover the entire gamut of Television content . 15 . There needs to be a clear mandate and norms set for surrogate advertising of tobacco and liquor products. Bacardi Blast CD's. By law. However. Non Fiction. The board could be reelected every two three years. all kinds of Tobacco and Liquor products are banned from any kind of Advertising on Television. news channels specially carry a heavy amount of liquor and tobacco advertising. Seagram’s Mega Movies.
This has also resulted in bad blood between broadcasters and cable operators. the subscriber. The battle is on for the ground. One only hope that the independent regulator. The ongoing tussle between Star and Siti Cable is an expression of that. It is these irritants which need to be overcome. in which Star has a stake. Cable operators are also peeved at arbitrary pay channel costs. which is an ominous sign. equipment manufacturers. Siti is said to be blocking Star’s channels on their network.Media Broadcasting Features Intensifying of competition on the broadcasting front has resulted in new. production houses and above all. does not want to air TV Today’s AajTak channel as Star News competes with it. which the new Communication Convergence Bill envisages. emerging opportunities for everybody—the broadcaster. 16 . will take care of this issue. Hath way.
in India. We are passing through a phase of transition from the predominant analog to digital transmission both in audio and video space. in the coming years. switching. to the point of interactivity. which is predominantly one way. computing and audio/video broadcasting. The way information. 17 . This convergence has been possible due to technological developments in the field of digital signal processing. communication and entertainment services will be delivered through the audio-visual media.Media Broadcasting Indian broadcasting is in for a major transformation in light of the global phenomenon of convergence of telecommunication. is going to make a departure from the present. etc. compression techniques.
In the last three years.731 crore from Rs 22. filmed entertainment by 16% from Rs 85 billion to Rs 175 billion. being creative on a tight schedule can be emotionally draining. According to a PriceWaterhouse Cooper Report.5% till 2011 to touch Rs. policy initiatives of the Indian government to encourage the inflow of investment and initiative by private media companies have been the key drivers of the industry. Advancement in Technology. 191 billion to Rs. 13 FDI proposals were approved by the Government. Additionally. Growing demand. 18 . print media by 13 from Rs 128 billion to Rs 232 billion. Favorable regulatory initiatives. along with advances in technology. Greater interface with international companies. Gradually liberalizing attitude of the government. 1 trillion from Rs. but it is extremely fast-paced and stressful as well. Privatization and growth of the radio industry. the Media industry is no doubt exciting and fun. along with advances in technology.The industry is expected to grow at a CAGR of 18. 436 million in 2006.International media giants are all vying for a stake in the segment. Growing demand. As per current estimates the television industry is projected to grow by 22% from Rs.721 crore this year. US$ 88 million of foreign direct investment (FDI) has flowed into the sector and in 2006. especially because most of the work includes long hours and meeting stringent deadlines.Media Broadcasting Demand drivers Key Drivers Economic growth of the country in general and rising disposable income levels in particular. the Indian advertising industry is set to grow 61 per cent by 2010 with advertising spend climbing to Rs 36. The Indian Entertainment and Media (IEM) sector (as the sector is generally referred to) is one of the fastest growing sectors in the economy. 519 billion by 2011.Separately. India will be one of the key drivers in driving the global entertainment and media industry to US$ 2trillion by 2011. Liberalized foreign investment regime. policy initiatives of the Indian government to encourage the inflow of investment and initiative by private media companies have been the key drivers of the industry.
Capital and Labor Intensity. Taxation. Industry Concentration and Geographic Spread. The Market Characteristics chapter covers the following: Market Size. The Linkages section lists the industry's major supplier and major customer industries. Cost Structure. Basis of Competition and Life Cycle. industry gross product. This section provides the size of the domestic market and the proportion accounted for by imports and exports and trends in the levels of imports and exports. The Major Market Segments section details the key client industries and/or groups as well as giving an indication as to which of these are the most important to the industry. Industry Volatility and Globalization. Linkages. exports. establishments. The Barriers to Entry section outlines factors that can prevent a new company from entering this industry and also gives an indication of the extent to which this occurs. imports. Regulation and Deregulation. Major Market Segments. The Products and Service Segmentation section details the key products and/or services provided by this industry. employment. The Industry Concentration section provides an indicator of how much industry revenue is accounted for by the top four players. Technology and Systems. Industry Assistance. The Geographic Spread section provides a guide to the regional share of industry revenue/gross product. The Market Size section gives the size of the domestic market as well as the size of the export market. highlighting the most important where possible to demonstrate which have a more significant influence over industry results as a whole. The Domestic and International Markets section defines the market for the products and services of the industry. Demand Determinants.Media Broadcasting Key success factors The Key Statistics chapter provides the key indicators for the industry for at least the last three years. The Demand Determinants section lists the key factors which are likely to cause demand to rise or fall. The Industry Conditions chapter covers the following: Barriers to Entry. The Taxation section details all 19 . Domestic and International Markets. The Basis of Competition section outlines the key types of competition between firms within the industry as well as highlighting competition from substitute products in alternative industries. domestic demand and total wages. The statistics included are industry revenue. The Life Cycle section provides an analysis of which stage of development the industry is at. The Segmentation chapter covers the following: Products and Service Segmentation.
the proportion of demand accounted for by foreign operators and the volume of production conducted in other countries. but are likely to have significant impact on a business. including forecasts 20 . The Key Success Factors section details the factors within the control of an industry operator and which should be followed in order to be successful in the industry. Often this will include behavior that will help to minimize the effects of the Key Sensitivities. The Performance chapter provides an analysis of both the industry's Current Performance and Historical Performance. The Technology and Systems section acknowledges the latest technology and/or systems available to this industry within the country. Technology refers to machinery and equipment and systems refers to methods of production that enable better and more efficient production. The Cost Structure section details the average costs for a company operating in this industry as a percentage of total revenue. The Historical Performance section details previously important events in the development of the industry. The Key Sensitivities section outlines the key factors that are outside the control of an operator in the industry. The Key Factors chapter covers the industry's Key Sensitivities and Key Success Factors. The Industry Volatility section refers to the year on year fluctuations which occur in industry output. The Capital and Labor Intensity section provides a guide to the amount of capital used in production/providing a service compared to the amount of labor in the total mix of inputs. The Industry Assistance section refers to any government and/or other measures designed to improve the performance of this industry. The Key Competitors chapter lists the major players in the industry as well as an analysis of each major player's activities in the industry. Market share information is included where possible. The Regulation and Deregulation section details any applicable regulation and/or deregulation to this industry. The Current Performance section provides the key analysis for the industry over the past five years with key performance indicators discussed.Media Broadcasting kinds of taxation that are specific or are particularly important to this industry. The Outlook chapter is a key analysis section of the report and outlines expectations for the key industry indicators over the next five year period. The Globalization section gives an indication of the extent to which the industry is global based on factors such as the level of foreign ownership. including taxation concessions.
competitor analysis and market share. In-depth industry market research presented in a logical and consistent format. The onset of digital television may provide a much needed boost for demand. and competition from new media. in particular. product and customer segmentation and a 5 year forecast 21 . A number of factors point to low growth in advertising revenue. the declining overall share of the TV audience. Including 40 pages of insights covering industry conditions. The bleak outlook for this industry has already prompted News Corp to expand its satellite TV interests. The cable TV industry. including forecast low economic growth.Media Broadcasting Environmental issues The industry continues to experience strong competition from the digital cable and satellite TV industries. represents a significant threat to future industry growth. key statistics.
Sun TV. Its serials and soaps have generated the maximum TRP for viewership all over India. Being the premier channel. When the satellite TV revolution broke out in India during the late 1990s. Uttar Pradesh. Marathi. Oriya. this network runs a group of 12 regional language news and entertainment channels. based in Chennai. Based at Hyderabad. 22 . In addition. Established in 1993. it has also recently launched a DTH satellite television service entitled Sun direct DTH. Sun TV Network It is the No 1 media company in South Asia and Asia Pacific Region ) and the largest TV network of South India. the channels give news in between entertainment programs. Bangla. Sun Network also offers FM Radio Stations (93. 4 Hindi channels for Madhya Pradesh. With 12 channels in regional languages of India. at the grass root level. Tamil Nadu. Sun TV is often used to refer cable TV in general or to the Sun TV Network in general. Urdu. It was the first fully privately owned Tamil channel in India when it emerged in 1993. Gujarati. Gujarati . Kannada. Initially launching a Telugu channel the network has later diversified into other Indian languages such as Bengali.and a 24-hours news channel in Telugu constitute the bunch of ETV Channels.Media Broadcasting Domestic players ETV Network It is one of the largest networks of satellite television channels in India and is owned by the media baron Ramoji Rao. making it the most popular network of channels in India. All its channels occupy the top spots in their respective languages.Oriya and Marathi. the Telugu daily newspaper Eenadu started with its own channel called TV. Bihar and Rajasthan. and regional entertainment channels in Telugu. Kannada. it offers a plethora of television channels in 4 languages covering the whole of southern India. ETV has the largest news-reporting network in India. Kalanithi Maran is the Chairman and Managing Director of media giant Sun Network and has been given awards including the CNBC "Business Excellence Award" in 2005. in Tamil is the Network's flagship and most popular channel. Urdu. Managed by News today Private Limited.5 FM) It has 45 FM Radio Stations and has recently forayed into the print business.
it has established amongst the Telugu viewer across strata and gender.Akkineni Nagarjuna. a cable company Siti Cable. 23 . Zee currently operates over 15 different television channels. It was previously known as Zee Telefims until 2006 when it was renamed and the news and entertainment units were spun off into four smaller divisions. The company's Chairman. the globe over. Prasad. the company formed part of BSE Sensex from 2000-2005. Its radio network Suryan has a lion’s share of listenership. Ch Ramesh & C Ramakrishna.Business-Standard. It is the largest media and entertainment company in India and is a subsidiary of Easel Group.in terms of its attitude.sun." . It launched Maa Music on 30 May 2008 which is equally trendy and reflects the roots of MAA network which shows something different to the Telugu audiences. www.Media Broadcasting Sun TV and its sister channels have a dominating share of viewership in Tamil Nadu. The managing directors are Murali Krishna Raju. SCV is cable distribution and Sun Direct is the dominating DTH (direct-to-home) player in the state. Zee Entertainment Enterprises Ltd. India. what to buy based on the news. As Zee Telefilms. its magazine Kungumum and newspaper Dinakaran are leaders. It is one of the leading Telugu language TV channels in Andhra Pradesh. Managing Director and Founder is Subhash Chandra and its Chief Executive Officer is Puneet Goenka. In 2006. N. Zee acquired an interest (50%) in Asian sports network Sports. as a channel that is different . information and entertainment coming from the Sun Group. where to shop. freshness and novelty. a record label Zee Records. a production company and other businesses as well. with several of its channels available in the UK and U. Allu Aravind. they acquired Integrated Subscriber Management Services Limited and in November 2006. as well as Africa and Asia.S. More than 80 per cent of the state’s population decides on how to vote. The news and regional entertainment channel business was spun off into a separate company in 2006 under the corporate banner Zee News Ltd. It has expanded operations abroad. Its cable arm. India. In 2002 Zee Entertainment Enterprises acquired a majority stake (51%) in ETC Networks. It launched in October 1992 and has since grown into a dominant player in Indian television.in is the default page on computer screens across the state since it owns the leading ISP. Maa TV It is a Telugu language TV Channel based in Hyderabad. In a very short time span.
SPE also recognizes the valuable potential of technology to help people communicate with the companies whose Web sites they visit. However our content also provides entertainment through a host of vignettes. UK.axn-india. The channel received an overwhelming response and went on to expand its operations in the US & UAE before launching in India in May 2000.com/ B4UTelevisionNerwork(India)PvtLtd B4U one of the world's leading Bolly wood television network was incorporated in 1999 and launched B4U Music and B4U Movies simultaneously in UK. music and entertainment lovers. Europe.Media Broadcasting AXN India This site is owned and operated by AXN Asia Pte Ltd.web site: http://www. the "Services"). has managed to carve a unique and distinct niche of the channel in the minds of our viewers. Our digital formatting ensures crystal clear true to real viewing experience.the Bollywood way . Middle East. SPE respects the privacy concerns of all users of the Services. 2001. unless noted otherwise. The B4U channels boasts of fantastic programming and mind boggling packaging and presentation with a single focus of entertaining . B4U Music provides some of the best Bollywood. which has a strong dose of humour and Bollywood fare. This Privacy Statement is applicable to all AXN and SPE Web sites and other sites on the Internet and World Wide Web owned and operated by SPE (the "SPE Sites"). Responsible use of the information you share with SPE is paramount. We guarantee a 360-degree view of 24 . All of this and more. Mauritius Canada and India. Indipop and International music with a greater leaning towards the Indian fare. we launched B4U Movies in India on October 02. B4U Movies is a window through which hardcore movie buffs can satisfy their complete bollywood experience.catering to all ages and a cross section of filmi. In order to help you understand how the information you provide SPE will be used. Some achievement for a young channel! After having successfully launched B4U Movies globally. particularly through customer databases. the following guidelines have been created. bringing Bollywood to your homes. Africa. and all services provided thereon. a Sony Pictures Entertainment (?SPE?) Company. including all SPE Forums (collectively. the channel happens to be one of the leading music channels among the C&S households globally. Within a short span of 2 years B4U managed to spread its broadcasting wings globally and at present is available on more than 8 different satellites. in more than 100 countries including the US. With rapid strides.
but well informed.com CartoonNetworkIndia This site may contain links to other web sites ("Linked Sites"). including any logos or characters. You must not use on your site or in any other manner any trademarks.com BBCWorldIndia BBC World is the BBC's commercially funded international 24-hour news and information channel broadcasting around the world from its base at BBC Television Centre in London. web site url : http://www.the why's and how's of the event as well.bbcworld. with in-depth analysis and cutting edge interviews the story from all sides. but not just the headlines turn to BBC World for the story behind the headlines . We strongly believe that no one brings you Bollywood more comprehensively & passionately as we do. CN does not in any way endorse the Linked Sites. web site url : http://www. Web site: http://www.com CNBCAsia. BBC World keeps its viewers not just informed. without the express written consent of the owner of the mark or materials. The Linked Sites are for your convenience only and you access them at your own risk.b4utv. whether or not CN is affiliated with sponsors of the sites. along with BBC World Service Radio.com/india_specific/india_specific. CNBC Asia's local partnership with Television Eighteen India Ltd (TV18) has produced a top-notch business channel dedicated to the delivery of relevant news to CNBC Asia's viewers in India. CN welcomes links to this site. provided that the link does not state or imply any sponsorship or endorsement of your site by CN. You must not frame or otherwise incorporate into another web site or present in conjunction with or juxtaposed against such a web site any of the content or other materials on the CN site without CN's prior written consent.cnbcasia.Media Broadcasting bollywood through our various bollywood-based programming. In India in particular. provides a focal point for viewers and listeners around the world. Efforts have been made to remain relevant to the local audience concerns and issues of the day. Web site: http://www. BBC World is an integral part of the BBC's commitment to global broadcasting and. CN is not responsible for the content of the Linked Sites. CNBC Asia goes beyond delivering regional news. Viewers who wish to keep ahead of global news events. You may establish a hypertext link to this site.asp 25 .cartoonnetworkindia. service marks or any other materials appearing on the CN site.
spending and making career choices. ESPN Singapore. consumer issues. Doordarshan is one of the largest broadcasting organizations in the world. MBC-ESPN (Korea). Awaaz has the potential to cut across socio-economic categories all over India. Its no wonder that Awaaz is already the fastest growing consumer channel in the country. Combining the strengths and resources of its ultimate parent companies. markets. ESS has thirteen networks spanning the region . puts out over 1.moneycontrol. Web site: http://awaaz. India's first consumerfocusedHindi channel. STAR Sports Hong Kong. CNBC-TV18.Media Broadcasting CNBCAwaaz The Indian consumers today rule the economy.in/ ESPNIndia ESPN STAR Sports is a 50:50 joint venture between two of the world's leading cable and satellite broadcasters. Awaaz is brought to you by Television Eighteen and the people who gave you India's leading business network. STAR Sports S. but also the single. Doordarshan reaches 87.A and STAR Sports Singapore. education.393 hours of programmers every week. ESPN STAR Sports brings its viewing audience of predominantly affluent. ESPN Philippines. Xing Kong Sports.gov.web site: http://www. Inc. ESPN Inc.web site url : http://www. and STAR. ESS is Asia's definitive and complete sports provider. soccer to swimming.6 percent of the country's 950 million people. informed decisions about investing. led by the most impressive team in business journalism as well as media moguls. saving. Walt Disney (ESPN. STAR Sports Taiwan. All eleven feeds are customised to deliver the world's premier sports events which are in line with local audience preferences. ESPN Taiwan. STAR Sports India.com/ 26 . Doordarshan operates 20 channels. ESPN India.ddindia. The consumer revolution is underway and so is Awaaz. the round-the-clock and round-theglobe sports entertainment they crave.ESPN Asia. has a network of 1081 transmitters. Awaaz is not only the voice of the Indian consumer. From basketball to badminton.espnstar. ESPN reaches over 110 million households while STAR Sports reaches over 54 million households. health.com/ Doordarshan-IndianNationalTelevisionNetwork. educated viewers between the ages of 15 and 54. shopping and more. Awaaz hosts an impressive array of shows spanning personal finance. ESPN Hong Kong.E.) and News Corporation Limited (STAR). driving exponential growth across sectors. authoritative source for making intelligent. small businesses.
Web site: http://www. current affairs and entertainment television NDTV is home to the country's best and brightest reporters. anchors and producers.setindia. HBO is recognized as the best in the business at producing original programs for television.com/ SonyEntertainmentTelevision. HBO also offers quality original movies and series that are produced by HBO.ndtv.com NDTV New Delhi Television Limited (NDTV). winning many Emmy and Golden Globe Awards year after year. exclusively for viewers of the HBO channel.hbosouthasia. founded in 1988.Media Broadcasting HBOIndia Launched in 1992. HBO is a 24-hour commercial-free subscription movie channel offering viewers in Asia a choice of more than 120 programs every month. Web site: http://www.com/ 27 . Web site: http://www. Sony Entertainment Television is dedicated to provide the best in Hindi family entertainment to the largest percentage of the Indian population-the young adult. is India's first and largest private producer of news. 23 offices and studios across the country host India's most modern and sophisticated production and news gathering facilities.
All service providers are bound by the codes. whether in any one or more of the forms of signs. Programming and advertisement codes laid down. Section 2(g) of CTN Act. 1995 – ―Cable Services‖ means the transmission by cables of programmes including re-transmission television signals. advertisement and serials through video cassette recorders or video cassette players. Copyright Act. Section 37 of the Act provides that every Broadcasting organization shall have a special right to be known as ―Broadcast Reproduction Right” in respect of its broadcast. or By wire. features. 1995) The Sports Broadcasting Signal (Mandatory Sharing With Prasar Bharti) Act 2007 Telecom Regulatory Authority of India Act. 1997 & Regulations framed there under. (TRAI) Copyright Act 1957 As per the amendment introduced in the year 1995. Content regulated by MIB. 1994 – No cable operator shall carry or include in his cable service any programme in respect of which copyright subsists under the by cable of any broadcast 28 . sounds or visual images. Cable Television Networks (Regulation) Act. 1957. Rule 6(3) of the CTN Rules. dramas. and includes a re-broadcast Section 2(b) of the CTN Act. 1995 – ―Programme‖ means any television broadcast and include exhibition of films. 1995 (CTN Act. Section 2(dd) – ―Broadcast‖ means communication to the public – By any means of wireless diffusion.Media Broadcasting Government policies Protection & Regulation of Broadcasters Up linking & Down linking Guidelines.
14 (reproduction by electronic means is the excl. Statute therefore recognizes and gives supremacy to the owner of the content.. right of the owner) Fair Use • Provisions contained in Sec. etc. 29 . programmes.Media Broadcasting Copyright Act. – for reporting current events.39A – Every broadcast has to be with the license of the owner of the work that is being broadcast. • Ref.37 (3) – Making sound recording or visual recording is illegal Sound Recording is very broadly defined • A recording of sounds from which sounds may be produced regardless of the medium on which such recording is made or the method by which the sounds are produced. License to reproduce the broadcast also requires license of the owner. • Sec. – to make back-up copies for studying interoperability of comp. Fair dealing for private use including – Research.52 of the Act -In addition to all the other provisions of Fair Use viz.. – Making of ephemeral recordings is not infringement – Use for an official ceremony by the Government or in a religious ceremony. 1957 • • Fixation -Not specifically defined Sec. – Criticism. to defn of ―Broadcast‖ & Sec. 1957 unless he has been granted a licence by owners of copyright under that Act in respect of such programme. Thus the broadcast through retransmission by wire is protected by Indian Law which still is an unresolved issue in the context of WIPO Treaty Copyright Act.
there were as many as 313 television channels beaming into the country." 30 . Media companies. despite disappointment in the previous few years. What we need to have is proper selection of technologies suiting our requirements. In direct-to-home (DTH) broadcasting. that represents the television industry. 1961.Media Broadcasting Fiscal regulations Most of the past one year." The minister added." However. broadcasting is a high-opportunity business in India. has told the finance ministry that the broadcasting sector should be included under `Industrial Undertaking' as defined by the Section 72A of the Income Tax Act. Stakeholders are hoping that this year would be different. the growth in this industry has been phenomenal. With 122 million TV homes. Plenty of platform choice like direct-to-home. both TV channels and DTH players. makes TV broadcasting even more exciting. Dasmunsi said. The IBF memorandum to the FM points out that "Section 72A of the Income Tax Act. as against between only two private operators till now. the finance ministry has been rather quiet on giving tax relief and any other sops to the media and broadcasting industry. Nevertheless. out of which 71 million are cable and satellite connections. 1961. which it believes could hamper its free functioning. The Indian Broadcasting Foundation (IBF). "Over the past few years. "There is a huge potential for development of broadcasting in India and we have a lot of advanced technologies available with us. Although information and broadcasting (I&B) minister P R Dasmunsi was the one to introduce mandatory-sharing ordinance for sports telecast. conditional access system and internet protocol television. he recently pointed out that the potential in the media sector is huge. On last count. stage has been set for competition between multiple players. the media industry has been busy resisting the proposed Broadcasting Bill. have once again given a list of their budget expectations. that came up for criticism from private channels. the broadcasting sector in India has witnessed all round growth. provides an incentive to robust companies to take over and amalgamate with the companies which would otherwise become a burden on the economy.
A 'national fund' for cable infrastructure has also been sought. Currently. In addition. Also.400 crore." "Also there should be no discrimination with the print media vis-Ã -vis service tax.32 per cent for computers and 4 per cent for cellphones. An IBF official told DNA Money.Media Broadcasting The memorandum states that the basic objective of Section 72A was to revive the financially weak businesses and synergise the business to achieve better growth. recovery of bad advances by banks and institutions. When the term `Industrial Undertaking' was introduced. and expansion of the definition of `Industrial Undertaking'. it does not cover the broadcasting sector.32 per cent. exempting broadcasting industry from service tax.64 per cent. says the IBF note. against 21. 31 . IBF also wants excise exemption for 10 years. and therefore the omission. better profits. customs and excise duties in the entertainment sector should be on par with the IT industry. The total estimated advertising revenue across television media in 2007 was Rs 7. as in the case of computer software industry." he said. But. While the customs duty on set-top boxes were reduced to zero. custom duty plus countervailing duty and cess on broadcast equipment is 36. which will result in higher tax revenues and increase in employment. "The duties in the broadcasting sector should be on par with the information technology (IT) sector. IBF has suggested that the government should exempt CVD. the broadcasting industry wants the countervailing duty and cess charges to be removed on set-top boxes that are a must for the conditional access system (CAS). reducing the custom duty on set-top boxes to zero. IBF has also demanded that the base for fringe benefit tax (FBT) should be reduced from 20 per cent to 5 per cent for the TV broadcasting industry. CVD. broadcasting industry was in a nascent stage. it is believed. The recommendations of the broadcasting industry include bringing custom and excise duties on broadcasting equipment on par with IT equipment. cess and other duties come to 21. while Section 72A of the Income Tax Act defines the term `Industrial Undertaking'. cess charges and additional duties on set-top boxes for the next 10 years.
educate and entertain the public and to ensure a balanced development of broadcasting on radio and television. The Broadcasting Bill . The Prasar Bharati Act .1990 The Prasar Bharati Act .Media Broadcasting The Cable Television Networks The Cable Television Networks Rules. the Cable Television Networks (Regulation) Act was passed in both the Houses of the Parliament. To check the screening of undesirable programmes and advertisements which are screened on these channels and to regulate the operation of the cable television networks in the country. 1997 The Bill is to provide for an independent authority to be known as the Broadcasting Authority of India which is for the purpose of facilitating and regulating broadcasting services in India. so as to bring uniformity in their functioning. to be known as Prasar Bharati. educate and entertain the public and to ensure a balanced development of broadcasting on radio and television. 1980 The Cable Television Networks Almost everybody in the country is familiar with the (Regulation) Act cable television. There has been a haphazard mushrooming of cable television networks all over the country due to the availability of signals of foreign television networks via satellites. right to the remote villages. The Prasar Bharati Act . 1980 The National Security Act. It says that it shall be the primary duty of the Corporation to organize and conduct public broadcasting services to inform. It has been spreading its wings from the initial urban cities.1990 was passed to provide for the establishment of a Broadcasting Corporation for India. 32 .1990 The Prasar Bharati Act . to be known as Prasar Bharati. 1994 Rules.1990 was passed to provide for the establishment of a Broadcasting Corporation for India. It says that it shall be the primary duty of the Corporation to organize and conduct public broadcasting services to inform. 1994 The National Security Act.
Specifically. 33 . besides creating healthy business environment in the country. However. high economic growth and strong macro-economic fundamentals. political and cultural exchange. society as a whole. easier access to and for international companies as well as advent of digital communication and its technological innovations are the other attributes of the growth of the sector. television. journals and other publications. It largely consists of print media like newspapers. educate urban and rural masses. privatisation and growth of radio. etc. education and entertainment to the masses. instill a sense of responsibility among the people. it helps people to be active partners in the nation-building endeavour. various research organizations. as well as electronic media like radio. magazines. it has acquired the status of an industry. It helps the Government to achieve various socioeconomic and political goals. good governance as well as law and order position in the country. The media industry has significantly benefited from liberal investment regime in the country. spectacular growth of the television industry. In India. In an era where knowledge and facts are the tools for economic. Thus. Media is a conscience-keeper of the nation and has many tasks to perform in our day-to-day lives. It is an easier and efficient means of communication which plays a key role in the overall development of an economy. With the changing scenario of the world. small and large business and production houses. gradually liberalising attitude of Government towards the sector.Media Broadcasting International scenario 'Media' is the medium of carrying information. FDI upto 100 per cent has now been allowed for print media covering non-news publications and FDI (with FII) upto 26 per cent has been allowed for print and electronic media covering news and current affairs. NRIs and PIOs. the news sector has also been opened up for FIIs. the media and entertainment industry is undergoing remarkable change and is one of the fastest growing sectors. internet. presence of the strong and constructive media in a country is important for catering to the diverse needs of individuals. as well as provide justice to the needy. The media industry plays an important role in creating people's awareness about national policies and programmes by providing information and education. Foreign direct investment (FDI) has been permitted in its various segments. new formats for film production and distribution. private sectors as well as the public sectors. etc. The main factors responsible for this are rising per capita/ national income. and democratic set up.
2007. Similarly. Doordarshan. direct to home (DTH) .Media Broadcasting The FDI (including FII) in FM radio broadcasting sector has been allowed at 20 per cent. that is. while latter rose from 0 to 115. 34 . While.2007.(within this limit. etc. FDI and FII upto 49 per cent have been permitted for cable network. setting up hardware facilities such as up-linking. over the years. At present. the number of private satellite TV channels has grown very fast from 1 TV channel in 2000 to 273 TV channels till 31.12. hub (teleports). out of which 70 million are cable and satellite homes and rest 40 million are served by the public broadcaster. FDI component not to exceed 20 per cent). Further. The news and current affairs TV channels constitute 58 per cent and non-news and current affairs TV channels constitute 42 per cent of total permitted 273 TV channels. there are 110 million TV households in India. there are 132 million radio sets in the country.12. The former channels have grown from 1 in 2000 to 158 till 31.
Media Broadcasting Porters five force model Threats of new entrants Bargaining power of suppliers Competitive rivalry within The industry Bargaining power of customers Threat of Substitutes 35 .
Media Broadcasting Bargaining power of Buyers Strength of Force—High The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. 36 . Supplier bargaining power is likely to be high when: Buyers (end users as well as advertisers) do not face significant switching costs and are extremely price sensitive. Viewers' tastes frequently change. His threat is especially high when the buying industry has a higher profitability than the supplying industry. The switching costs from one supplier to another are high. so their bargaining power is low. providing little loyalty to any particular network Advertising buyers dictate television programming choices The suppliers customers are fragmented.
the bargaining power of suppliers is low.Viacom has acquired Paramount. The supplying industry comprises a large number of small operators The service is undifferentiated and can be replaces by substitutes. Independent content providers pose a major challenge to online revenue model for broadcasters.Low.Media Broadcasting Bargaining Power of th Suppliers Strength of Force-. The customer knows about the production costs of the product 37 . Customers bargaining power is likely to be high when Since most suppliers to Broadcasters have either been acquired/ have a tie-up with the broadcasters. However. For ex. the bargaining power of customers determines how much customers can impose pressure on margins and volumes.Medium Similarly.
Media Broadcasting Threat of New Entrants Strength of Force—Low The competition in an industry will be the higher. e. The threat of new entries will depend on the extent to which there are barriers to entry. Long-lasting economies of learning and scale also demotivate the potential new entrant Economies of scale (minimum size requirements for profitable operations).g. customer loyalty) at any time. These are typically High start-up capital is a big de motivator New entrants have difficulty accessing distribution channels. the easier it is for other companies to enter this industry. Serviceable used equipment is expensive. market shares. materials. and suppliers. prices. Brand loyalty of customers Scarcity of important resources. New entrant has some problems finding skilled employees. 38 . Distribution channels are controlled by existing players. There is always a latent pressure for reaction and adjustment for existing players in this industry. new entrants could change major determinants of the market environment (e. qualified expert staff Access to raw materials is controlled by existing players. In such a situation.g.
Similarly to the threat of new entrants. adequate substitutes are available. This category also relates to complementary products. sports. gambling. Other free time activities be could be substitutes (concerts. Also. Current trends. One Broadcasting medium substitute for the other(movies as a replacement For TV) Pirated content is a decent(and free substitute). games. the treat of substitutes is determined by factors like The relative price for performance of substitutes.Media Broadcasting Threat of Substitutes Strength of Force—Medium A threat from substitutes exists if there are alternative products with lower prices of better performance parameters for the same purpose. Possibly. Customers incur no incur switching costs. restaurants) 39 . gardening. They could potentially attract a significant proportion of market volume and hence reduce the potential sales volume for existing players.
Competition between existing players is likely to be high when There are many players of about the same size. and also acquisitions/mergers are common. margins.Media Broadcasting Intensity of Rivalry among Competitors Strength of Force— High This force describes the intensity of competition between existing players (companies) in an industry. ethics are often questionable. hence. on profitability for every single company in the industry. and hence. capacity to induce users to subsidiaries Companies and products. created size by consolidating complementing firms. High competitive pressure results in pressure on prices. 40 . Competition is fierce. There are significant brand identities and product differences. there is much price competition Larger firms have created a critical mass. Players have similar strategies There is not much differentiation between players and their products. Exit barriers are low.
Media Broadcasting Market share sectors Agriculture Manufacturing Service 2006-2007 18.5 21 Agriculture Manufacturing Service 2007-2008 18 55 37 agriculture manufacturin g service Interpretation Market share in Indian economy the service sector was drastically increased up to 2007 after words it decreased to 5. 41 .5 21 60.5 sectors Agriculture Manufacturing Service 2007-2008 18 37 55 2006-2007 18.5 60.5% because of IT fall in India.
Real Estate and Business Services & etc Construction and IT 2007-2008 15 20. Insurance.5 26. 42 .3 2006-2007 13 Media Broad casting others 47.8 23.7 17.5 2007-2008 15 Media Broad casting others 40. Insurance. Real Estate and Business Services & etc Construction and IT 2006-2007 13 Service sectors Media Broad casting Financing.Media Broadcasting Broadcasting share in Indian economy Service sectors Media Broad casting Financing.8 Interpretation In service sector the portion of media broadcasting was slowly increased in this year 2008 due to the floods and elections the media broadcasting industry was increased.
The industry expects to grow advertising revenues at a rate of 4. Also. The industry is very sensitive to market trends/customers’ needs and develops solutions according to the fast changing requirements. 43 .2% in 2007. Home movie downloads are becoming more accessible via the internet and those in the industry have successfully met this. there is Strong network between public and private sector. Competitive pricing helps the end customer as do customized solutions.Media Broadcasting SWOT Analysis Strengths Latest technology is used by the Industry. it offers wide variety of solutions including some very creative ones. Box Office revenues are expected to see consistent growth in 2007. along with that. There is strong expertise of broadcasters in core areas and also we see heavy competition which is a sign of prosperity for the Industry.
Well awareness through broadcasting. video iPod. video on demand. Increasing no. but there is rapid growing potential for revenue from downloads and transmissions to mobile phones. and internet downloads. Conglomerates have the resources to seek out this changing market while balancing its initiatives on the television broadcasting level. Those who are able to create strategic partnerships and find alternative ways of doing business will thrive. 44 . Change in technology and in consumer wants and needs brings about new opportunities for growth and for different players to catch a larger share of the industry. of channels.Media Broadcasting Opportunities Downloads remain a small part of revenue growth. Now some broad casting companies are providing box offices also.
Full depending on power supply. automakers will have an impact on advertising spending. Environmental issues. automobile industry has a major effect on the Broadcasting & Entertainment industry as it is one of the largest advertisers. Ongoing weakness of U.S. Remote area can not access.Media Broadcasting Weakness Domination of 4-5 major players is a negative sign thus creating somewhat monopolized industry. 45 .S. The U.
and jobs are all concerns of the economy in 2007. declines in home prices in some areas will limit consumers’ ability to tap into the equity in their home. Though broadcasters understand the evolution of advertising from television to the Internet. this industry will suffer if we experience economic decline. Also. the threat of piracy and illegal downloads is more prevalent. With primetime viewing and movies turning digital. With an unstable outlook. This is seen as advertisers insist that rates be based only on live viewing and not time shifted viewing.Media Broadcasting Threats Slowing Real GDP. Oil prices are beginning to rise. which will hinder the industries growth. inflation. The influx of DVR’s (Digital Video Recorders) into the homes of consumers has a negative impact on advertising revenues. which will cause a decrease in available Challenges of Broadcast Industry and Opportunities for IT Solution Providers cash for consumers to spend. there is still an uncertainty as to whether or not the consumer traffic will remain or drop off to other alternatives. 46 .
and then decide to specialize in specific capabilities which match with their business model. This digital transition could be leveraged by IT solution providers by providing solutions ranging from back end support work to key hitechnology solutions and advanced data analytics. Also. in case IT solution providers have to earn substantial revenue from this ever. Broadcasters can look at generating revenues from newer mediums while future of existing mediums is increasingly becoming unsure. they must start delivering right now.Media Broadcasting Conclusion Broadcasting Industry is going through a massive technical up gradation phase. a word of caution is that neither revenues are predictable nor sustainability of these solutions can be guaranteed. However. 47 . IT firms must identify their segment of operation (The tier they belong to).emerging area. since broadcasters are keener than any time before to adopt these solutions. This phase brings along many opportunities for various players across the value chain.
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