MEDIA SCENE IN INDIA AND FUTURE TRENDS

1. MEDIA SCENE IN INDIA AND FUTURE TRENDS

2. Media buying agencies • Agency of record (AOR) • Central Media Buying (CMB)

3. Media Purchases thru Media Buying Agencies • 1980 1% • 2000 25% • 2006 33% (likely)

4. 4 out of 10 Indians are still not reached even today

5. Every 100 kilometers the dialect changes

6. A country with many tongues • 16 official languages • Approx. 1000 dialects

7. Geographical size • 7th largest area mass • Population/ Area mass – India is No.1 • In comparision even USA is No.4

8. Media target • 15 million people are being added every year • 5 – 14 age group – 26% population • < 30 yrs - 70%

9. Rural Urban Divide • 20 to 30 % of the population, with the urban % growing every year • 39% urban population are concentrated in the top 35 towns (towns over 1 million) • 52% of the rural live in the smallest villages. • 4 out of 5 HH have an HHI of less than Rs. 2000 p.m.

10. Market Penetration is far higher than media penetration

11. Growth of Media Expenditures • 1994 Rs. 3500 crores • 2000 Rs 9000 crores • 2005 Rs 16000 crores

12. Time spent on Media

13. Types of Media used • TV • Press • Radio • Cinema • C & S • Internet

14. Share of expenditure by media (%)

15. Top ad spends by category (rank)

16. Ponds Fair and Lovely Brittania Vicks Bata Colgate Lux Rin Dettol Tata salt Top 10 brands – 2004 BE

17. Top 10 Advertisers

18. Top Trusted Agencies – 2004 BE

19. Media Reach (2000)(%)

20. Media Reach (2000 – 2005)

21. Media Penetration NRS 2003

22. Share of Adspend by media (%)

23. % HH owning TVs

24. TV ownership (million)

25. Top 5 programmes in C&S channels (2000) • Kahani Ghar Ghar Ki • Kabhi Saas Bhi Kabhi Bahu Thi • Kasauti • Son Pari • Kahin Kissi Roz

26. Top 5 serials (2003) • Kyunki Saas Bhi Kabhi Bahu Thi • Kahani Ghar Ghar Ki • Kasauti Zindagi Ki • Des Mein Nikla Hoga Chand • Jassi Jaise Koi Nahin

27. Top 5 channels preferred • Star Plus • Sony • Zee • Regional • Doordarshan

28. Top 5 Revenue earning channels (2005) • Zee Telefilms – 1360 cr • Star India – 1300 cr • SET India – 1000 cr • Doordarshan – 665 cr • Sun Network – 300 cr

29. Top 5 revenue earning Channels General Entertainment(2005) • Doordarshan • Star Plus • Sun TV • Gemini TV • Zee Cinema

30. Top 5 revenue earners in News channels (2005) • DD News • Aaj Tak • NDTV India • Star News • Zee News

31. Channel categories preferred • Movies • News • Sports • Music

32. What does the future hold?

33. TV and C& S • Fragmentation of viewership • DD will counter this with more private participation • Satellite TV will provide further growth impetus through regional /niche channels

34. Press Readership(%)

35. Print Penetration (NRS 2003)

36. Publications • There are over 40000 publication being printed. • 85% of these are language publications

37. Readership(%)

38. English vs. language (2000) • Among the dailies, the first 8 are vernacular. TOI comes 9th.(TOI is now No.3) • Among the magazines, INDIA TODAY is 2nd. All other nine publications are vernacular.

39. Print - NRS 2003 • TOI is No.3 in the top 10 publications. The first two are vernacular – Dainik Bhaskar and Dainik Jagran (DJ is now No.1 – 2.2 crores circulation) • Among the English Dailies, TOI, HT and The Hindu are the top 3. For the first time an afternoon daily, Mid-day is No.8 in the top 10 dailies. • ET is the only business paper to make it to the English top 10 at No.6.

40. The future • Had to pull up its socks, Satellite TV was hitting it. Had to resort to better analysis, packaging, layout. • Reshaping – layout , colour, spl. Issues, local editions • Aggressive Marketing – invitation pricing, freebies, subscription drives

41. Cont’d • Segmentation Interest groups – eg.men, women Content based – business, sports, fashion • Pampering the reader – visual quality, features

42. Vision • Current – monopolies weakening, niche publications • Future – further fragmentation, press barons entering radio /TV, innovate beyond space with advertorials, promotion events, sponsorships • Exploit emerging opportunities in cross media ownerships Implication – striking cross media deals, leveraging spends

43. Radio • State run – among the largest in the world • 3 tier broadcasting system – local, regional, national • Programming in 24 languages and 146 dialects

44. What is the present status? • Reaches a very large audience. • A very important vehicle for the rural market • Impact however has been going down because of TV.

45. Future • Huge resurgence because of FM. • Mobile audience • Large media groups and channels entering the fray. • Local ethnic stations to spring up • 70% of non TV HHs do not own radio or have access to radio. Huge potential for growth.

46. Cinema • Current status Reach going down owing to theatre viewership going down. However, South is the only exception where cinema is next to TV in reaching audiences. • Future – High impact but stagnant medium. a small revival is expected in larger cities with multiplexes and better viewing facilities.

47. Outdoor • Is still relatively unorganised • Heavy usage for liquor and cigarettes • Lack of monitoring services

48. Technology is showing the way • Hand painting to digital painting • Metal to paper to PVC/vinyl • Illuminated sites – frontlit/backlit • Vinyls to lenticulars (lustrous)

49. INTERNET • Net advertising comprises only 0.5 % of the total adspend of the industry. • Likely to grow upto 3.7% in year 2005

50. Internet usage • Major uses from Internet 1) e – mail 37% now 32%( inclusive of surfing) 2) chatting 15% (now 32% )