MEDIA CONCENTRATION

IN INDIA 2nd Interim report

Paris20 Jan 2011

AnuradhaBhattacharjee

&

Tapasya Banerjee

Magazines

• Newspapers have been privately held since their inception in India. They have brought out magazines and both together have been termed ‘print media’. 265 magazines registered with RNI, 71 brought out regularly.

• As with newspapers, the circulation of vernacular magazines is higher than revenue figures. Ad-revenue is skewed in favour of English magazines. India Today with its vernacular editions is the top grosser.

CIRCULATION OF TOP FIVE MAGAZINES IN INDIA (1984-2008)Top players 1984 1988 1992 1996 2000 2004 2008

1 ManoharKahaniya

6.91 5.79 4.11 - - - -

2 Vanita(M) 5.33 - 3.19 3.94 4.48 8.29 6.97

3 India Today (E)

5.14 - 4.22 4.72 5.05 - -

12 India Today (H)

- - - 3.47 - - -

4 GrihaShobha(H)

- 4.61 3.82 3.71 3.89 5.35 -

5 Thuglak(T) 3.44 - - - - - -

6 Saritha - 4.02 - - - - -

7 Maya - 3.58 - - - - -

8 Nandan - 3.44 - - - - -

9 Readers Digest (E)

- - 4.52 - - - -

10 Manorama(M)

8.34

11 Lok Rajiya (H) 4.74

13 Competition Success Review(E)

5.13 - - - 3.24 3.81 2.49

14 Saras Sahil - - - 7.25 13.47 16.04 -

15 Meri Saheli - - - - - 5.33 4.64

Source: RNI for All the years

National Marketshare of Indian Magazines (%): 1984 to 20081984-92 1996 2000 2004 2008

India Today Group ( Living Media Pvt. Ltd)

Data not accessible

28 17 11 24

Outlook 7 6 5

Business India 9 5 5

Business World 5

Femina ( TOI Group) 5 4

Chitra Lekha ( Hindi) 6 5 4 3

Others 52 61 74 68

Total Revenue (in billion INR) *

NA NA 5.25 13.7

C4 0 48 39 26.00 36.00

HHI 0.00 926.00 413.00 198.00 626.00

Number of firms in a given year (n)

123 170 299 265

MOCDI (Noam) #DIV/0! 83.49461 31.67565 11.45 38.45

Value Unconc Unconc Unconc Unconc

Source: AdEx India - A Division of TAM Media Research,

Note: All figures on card costs

Magazines concentration ( graphical)

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MAGAZINES

Book Publishing

• Publishing in at least 18 languages in India. 25% in Hindi, 20% in English.

• Estimated 80,000 titles published by 16,000 publishers annually.

• Text books most important chunk of the publishing industry.

• $ 20 billion industry generating approx $ 1.5 b in revenues annually. ( Source: Abdullah Al Madani in Gulf News, Source: http://www.impz.ae/wp-content/files/File/India%27s%20Book%20Industry.pdf accessed 6th May, 2010.)

Films

• The first Indian film was Raja Harishchandra in 1913, while some sources put it as Pundalik in 1912. Raja Harishchandrawas released in 20 versions in eight languages.

• Studio model was followed and all artistes were employees of the studio company.

• By the late 1940s this system started breaking up and all the actors’ lyricists and scriptwriters moved towards becoming independent.

• In 1998 industry status was granted and 100% FDI in films was mooted. Studios like UTV and Adlabs emerged.

• A shakeout is expected to begin when all the major names

like RK Films, Rajshri films, Yashraj films, BR Filmsetc. begin to corporatize

Films

(%)

Market

1984

Shares

1988 1992 1996 2000 2004 2008

D. Rama Naidu 68.6%

Satyendra Pal 31.4%

N Chandra 42.7%

Bittu Anand & Co 32.0%

Pahlaj Nihalani &

Co. 25.3%

Ashok Thakeria, Indra Kumar 38.8%

Salim Akthar 23.3%

Guddu Dhanoa, Raju Kothari, Lalit

Kapoor 19.1%

Manoj Desai,

Nazir Ahmed 18.4%

Aly Morani, Karim Morani, Bunty

Soorma 52.9%

Rajkumar

Santoshi 16.9%

Sajid Nadiadwala 16.4%

Mansoor Ahmed

Siddiqui 13.8%

Film Kraft

Production 34.3%

Yash Raj Films 33.3% 50.7% 26.5%

Vidhu Viond Copra Production 19.2%

Venus Records &

Tapes 16.2%

Films concentration ( graphical)

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FILM

Film exhibition industry

• 2005: Approximately 12,000 screens in India of which 73 were multiplexes with a total of 276 screens thus constituting 0.6% of the total cinema halls in India, yet accounting for 28-34 % of the box office collections of the top 50 films in 2004.

• 1997: PVR Cinemas set up India’s first multiplex in Delhi.

• Currently the largest number of multiplexes: 12 in Mumbai.

• 2008 : about 1000 movies made in India grossed about Rs 97 billion from the sale of 3.25 billion tickets in box office revenues .

Film Exhibition (contd)

• Tickets sell for an average of between Rs 115-150 at multiplexes and Rs 15-50 at single screen theatres across the country.

• Pyramid Saimira, PVR Limited, Mukta Arts, Shringar, Cinemax and Reliance have been integrating processes from production to exhibition. Inox has been emerging as a distribution major.

Film Exhibition

Market Shares (%) 1984-2000 2004 2008

Pyramid Saimira Theatre 34.9

PVR Cinema 14.49 9.57

Inox Leisure 11.85 9.63

Adlab Films (A unit of Reliance Entertainment) 3.93 12.70

Cinemax 2.33 0.0

Others 61.12 33.22

Total revenue (bil

INR) 20.20 160.96

C4 32.60 31.90

HHI 365.83 345.61

No of firms in a

given year (n) 9 11

MCODI (Noam) 121.94 104.21

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#REF!

MOVIE THEATRES

Search engines & Portals

• Google and Yahoo dominate the Indian search engine market, one of the first Indian portals was IndiaWorld.com.

• Major Indian portals are Rediff.com, Indiatimes.com, Naukri.com, Makemytrip.com, shaadi.com

Search Engines and

Portals Market

Shares (%) 1984 2000 2004 2008

Google 0.8% 0.8% 0.8% 81.4%

Yahoo 9.4%

Aks.com 1.9%

Microsoft 1.7%

Rediff 1.5%

Facebook 0.8%

Others

Total Rev (mil $)

C4 94.4%

HHI 6724

Noam Index 2745

Gaming

• The gaming industry in India began in 2005

• 2008: The Indian gaming industry was valued USD 167 million.

• Gaming Industry Breakup (2008)

Online Gaming 22%

Mobile Gaming 26%

Console Gaming 39%

PC Gaming 13% (Source: NASSCOM, 2009)

• Zapak ( a div of Reliance )biggest player in sector

Market share MSOs• Emerged in 1995 after the government

introduced the conditional access system (CAS) to strengthen the ‘addressability’’ of subscribers to a channel.

• Major broadcasters and cable companies backed by serious corporations and consortiums of cable operators set up ‘headends.’

• The number of C& S homes has been rising steadily and the subscription fee charged has doubled from Rs 70 per month per home in 1995 to Rs 150 per month per home by 2008.

MSO (contd)

• Rough estimate puts the size of this industry to 149.4 billion.

• According to estimates just about 20% of this amount reached MSOs and television channels. Whereas in developed markets where the figure is about 70%. ( Dinyar Contractor,

cited in Vanita Kohli KhandekarThe Indian Media Business3 rd ed. (Delhi: Response Books, A division of Sage Publication, 2010): 80.)

MSO M arket

Shares (%) 1992 1996 2000 2004 2008

Hathway Bhawani Cabletel & Datacom Ltd 11.46 12.77

Siticable (renamed as wire & wireless India Ltd) 0.06 11.42

Den Network 35.00

Asianet Satellite (29% of

Kerala) 0.12

Others 82.42 40.81

C & S House hold (in

Million INR) 1.2 18 33 55 83

Total revenue

(bil INR) 100.80 216.00 396.00 990.00 1674.00

C4 11.16 0.59

HHI 6924.40 1665.61

No of firms in

a given year

(n) 2 7 9 9 13

MCODI

(Noam) 2308.14 461.96

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MSOs

Marketshare DTH

• 2004: TRAI introduced Direct to Home (DTH)

Year DTH homes (in Millions)

2004 NA

2005 3.75

2006 5.2

2007 8

2008 15

DTH

Market Shares (%) Launched 2004 2008

Dish TV Oct/03 20.48 43.00

Tata Sky Aug/06 NA 37.12

Sun Direct Dec/07 NA 19.17

Airtel Oct/08 NA

Big TV Aug/08 NA 0.56

Total Rev (mil INR) 3456.30

C4 20.48 99.85

HHI 10000.00 3649.35

Number of firms in a given year (n) 1 5

MOCDI (Noam) 41943.04 1632.04

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DTH INDUSTRY

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H H I by Industry in India

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1984 1988 1992 1996 2000 2004 2008

Year

Volume

Radio

C om bined Video(TV, C able, Satellite)

N ew spaper

M agazine

Film

Theater

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W ireless

ISP

Portal & Search Engine

HHI by Industry in India

Some observations • Cross Media Holding & COUs: A COU is a newspaper

ownership that owns two or more news-interest newspapers, one of which is a daily newspaper: RNI, 1959– BCCL has its presence in – 5 dailies including two of the largest in the country with

approx 4.3 million copies circulated daily – 2 lead magazines – 29 niche magazines – Reaching 2468 cities and towns– 32 Radio Stations – 1 Television News Channel– 1 Television Life Style Channel

• Newspapers, Magazines, Television, Radio and Films vertical are governed by the Ministry of Information & Broadcasting in India.

• The film exhibition industry is governed by the Ministry of Commerce and Industry in India.

• Book publishing is governed by the Ministry of HRD in India owing to its linkage with the education sector.

Observations- 2

• MSOs and DTH governed by TRAi under the Department of Telecommunications, Ministry of Communications and information Technology.

• Search engines, portals and gaming are governed by Department of Information Technology, Ministry of Communication and Information Technology

Observations - 2 (contd)

Observation- 3

• The role of the media metrics industry especially when most media dependent on advertisement revenues over subscription revenues in driving concentration?

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