Media boom is front-page news

From magazines to radio, newspapers to movies, it's the industry itself that's causing a sensation in India.

India is the new El Dorado for international media houses. This comes as no surprise to media professionals such as Manoj A. Mathew. He says that India with its population of more than 1.2 billion people is now beginning to show its true strength. "The government has wisely utilised what was previously considered the country's greatest weakness to its maximum advantage. Now with India becoming a favourite with foreign investors, we are seeing an increase in the inflow of goods and services into the country. Hence, it is not uncommon to see investments in all segments of the media. The result has been the information boom in television, print, radio, outdoor, internet, mobile phones and handhelds and exponential growth within the industry," says Mathew, who is Vice President – Marketing and Convergence, Real Media Zee Network, one of India's leading television networks.

These sentiments are a reflection of the developments in the Indian media and entertainment industry, which saw foreign direct investment to the tune of $211 million in 2007 (courtesy: Federation of Indian Chambers of Commerce and Industry (FCCI) and audit firm PricewaterhouseCoopers's joint report). In the past two years, the print segment – especially magazines as a sector – has witnessed phenomenal growth and attracted foreign investment. Indian editions of Vogue, Rolling Stone, OK!, Hello, Maxim, FHM, Golf Digest, People and Marie Claire have hit the stands much to the delight of a market looking for more variety
in entertainment, fashion, health, travel and health-specific content. US-based Fortune Money Group and leading local publication house Ananda Bazaar Patrika have also announced a partnership to launch the Indian edition of Fortune just as Network18 and US-based Forbes have tied up to publish Forbes in India. These magazines will share rack space with the Economist and Condé Nast's GQ in the near future. India already has Cosmopolitan, Good Housekeeping and Reader's Digest.

The motivation for international publishers is clear considering that in a global market where advertising spend on print is clearly on the decline, India is a gold mine. In fact, figures from the International Federation of Periodical Press indicate that magazine advertising in India is estimated to rise by 20 per cent to $302 million in 2008. It's not just magazines as a segment that is seeing growth, newspapers are doing equally well. According to a report by GroupM, the media buying arm of the UK-based marketing communications conglomerate WPP Group Plc, the Indian media market, including newspapers, is expected to grow 20 per cent year-on-year in 2008. Figures from the report show that the display advertising component of the newspaper market in 2007 was valued at Rs92.9 billion (about Dh8 billion).

Based on the report's findings, this performance has been spurred by forays into smaller markets, innovations such as
e-papers (for NRI Indians), tabloids (aimed mainly at metro commuters) and a move to publishing in other languages in addition to English to expand reach.

These developments have also had an impact on media professionals and readers. Carol Andrade, Editor Supplements, Times of India, says, "With the spread of satellite communications, publishing houses can afford to have separate editions even in the smaller towns. And with the tyranny of physical page transportation overthrown, news is fresher, more immediate and responsive to local situations.

"It puts a greater responsibility upon media professionals to constantly update their skills and use more technology to deliver larger volumes of content. In the face of increasing competition, journalists must also woo readers by delivering more exclusives, insights and empowering analysis than ever before."

Andrade says consumers, on the other hand, have never had it so good. "Faced with rising salaries and the need to consume more and more, they have also become demanding both about the kind of content they expect from print as well as the way in which it is delivered. This sometimes results in a blurring of the lines between advertising and editorial and has led to much soul-searching in both newsrooms as well as in management, as both segments explore possible ramifications and repercussions," she says.

On the other hand, the television industry, which is expected to comprise more than 700 television channels by 2009, is more likely to be concerned about survival in a competitive market that's growing rapidly. The rate of growth in 2007, for instance, was 18 per cent, which was much above the industry average (joint report by the Federation of Indian Chambers of Commerce and Industry (FCCI) and PricewaterhouseCoopers).

This rate of growth is set to continue. Consulting and research firm Media Partners Asia predicts that India is set to become Asia's leading cable market by 2010. It also forecasts that cable television advertising revenue is likely to grow from $1.02 billion in 2005 to $1.8 billion within three years. Mathew says the greatest change due to this development is that of the choice now being offered to the viewer. "There was a time when there was only a single Hindi state-run channel, today we have television channels in all regional languages across genres be it in news, general entertainment, business, cinema, music and special interest." The race to win the most viewers has also resulted in a drastic improvement in the quality of programming.

"Cable operators now have more content to offer. New operators have also got into the business to cater to the growing demand. In addition, the introduction of digital distribution platforms such as DTH (direct-to-home) gives viewers more choice and quality. We also have better utilisation of bandwidth and new delivery mechanisms coming into the forefront such as IPTV (internet protocol television) to Mobile TV to DVB–H (handhelds)," says Mathew.

Foreign investment in the filmed entertainment segment has also been promising. International media and entertainment conglomerates such as Viacom Inc, NBC Universal Inc and Walt Disney Co., are making their presence felt through their partnerships with Indian media companies such as Network 18 group, NDTV Networks Plc and UTV Software Communications. This factor in addition to revenues from home entertainment, DVD and VCD viewing, digital pay television platforms and broadcasting rights have helped push growth.

Radio has also shown a remarkable emergence in India since the second phase of bidding for radio channel licences kicked in. Today, there are more than 200 FM stations operational in the country. Leaders in the market include Radio Mirchi, Radio City, Big FM and My FM. International players such as the UK's Independent News and Media Plc is also entering the market through a partnership with Jagran Prakarshan Ltd.

Digital media – which includes the internet and mobile segments – is another area that promises to see rapid development considering its popularity with the younger segments of the market. In fact, the internet is being explored as a channel of distribution for film distribution, as it can reach more than 20 million people of Indian origin living overseas.

However, it's not just international companies that are looking at investing in the Indian media industry, Indian companies are also looking at expanding their interests in the overseas market and that trend has far from reached its potential. For instance, Bennett, Coleman, which owns Radio Mirchi, recently bought Virgin Radio Holdings Ltd and its subsidiaries in the UK from Scottish media group SMG Plc; through wholly- owned unit TIML Golden Square Ltd.

Television giant Zee has increased its international presence over the years. The network took a decision to increase its presence in the region and set up Zee Towers in Dubai Media City. It recently launched Zee Aflam to bring Indian entertainment closer to an Arabic audience. India's leading news channel NDTV has also set up an office in Dubai to run its Middle East and North Africa operations.

Another example is Reliance Big Entertainment, a media company controlled by Indian industrialist Anil Ambani. The company is in talks to finance a project by Hollywood bigwigs Steven Spielberg and David Geffen.

And it doesn't stop there. Bollywood filmmaker Sajid Nadiadwala has signed Sylvester Stallone for his next movie Kambakkht Ishq, which is clearly a sign that Bollywood is lucrative for international stars.

On home ground, though, industry experts see several trends influencing the future of the media and entertainment industry. Andrade sees more entertainment, competition, specialisation with niche magazines, area-specific newspapers and supplements, and more interactivity.

"But in my opinion, it is the internet which is poised to make the next big difference in the information explosion." Mathew says that the medium of delivery as in terms of IPTV, DVB–H and mobile phones will be a focus for the television industry. He adds that interactivity will also play a huge part in the growth of television, citing it as a reason for the success and popularity of reality shows the world over. However, at the end of the day, what really matters is that all these developments will ultimately empower the consumer.