Mass Media Industry

Module 1
Political economy of India :
The development of India's economy was based on socialist-inspired policies
after independence. It included state-ownership of various sectors, regulation
and red tape which was known as 'Licence Raj' and protection from the world
markets. The Political Economy of India has rapidly changed with the
liberalization of the economy in the 1990s. It has now moved towards a marketbased system and is the world's second fastest growing major economy after
China. India recorded the highest GDP growth rate of 9% in 2007.
The growth rate has reached 7.5% in the late 2000s. The country is the world's
twelth-largest economy by (PPP) purchasing power parity adjusted exchange
rates. It is ranked 118th by PPP and 128th on per capital basis in the world. The
most important priorities for India according to the World Bank are public sector
reform, agricultural, removal of labor regulations, infrastructure, rural
development and reforms in backward states.
The liberalization of India's economy was initiated by Prime Minister Rajiv Gandhi
in the 1980's. In 1991, the International Monetary Fund (IMF) bailed out India
through a $1.8 billion loan when it faced a crisis on defaulting on its loans.
During this time, Prime Minister P. V. Narasimha Rao and his finance minister
Manmohan Singh initiated new reforms.
The new reforms led to easier international trade and investment, privatization,
deregulation, inflation-controlling measures and tax reforms. Liberalization has
been the same irrespective of which party headed the government. But no party
has yet thought of reforming labor laws and reducing agricultural subsidies which
may anger powerful lobbies like trade unions and farmers.
Pre liberalization
From independence, economic policies included import substitution,
protectionism, industrialization, business regulation, intervention of the state in
labor and financial markets. There were Five-Year Plans similar to the central
planning in the Soviet Union. In the mid-1950s, industries such as
telecommunications, machine tools, steel, insurance, electrical plants were
nationalized. Between 1947 and 1990, licenses, regulations which were
accompanied with red tapism were required for setting up businesses. This was
referred to as the Licence Raj.
The impact of these was that from 1950s to 1980s the economy of India
stagnated around 3.5% and there was low annual growth rate. Industries like

communications, steel and power were given only four or five licences. Therefore
license owners made a huge business. There was a large public sector and losses
were incurred by state-owned enterprises. Because of public sector monopoly
there was poor infrastructure investment. With the License Raj system, there was
wide spread corruption.
Rajiv Gandhi government (1984-1989)
Prime Minister Rajiv Gandhi initiated lighter reforms by reducing the License Raj
and promoting the growth of software and telecommunications industries.
Narasimha Rao government (1991-1996)
With the assassination of Prime Minister Indira Gandhi in 1984 and her son Rajiv
Gandhi in 1991, confidence for international investment in the economy was
crushed. Since 1985, there was a balance of payments problem and by late
1990s the country faced a serious economic crisis.
The Narasimha Rao government started the liberalization process by abolishing
the Licence Raj system which ended various monopolies, reforming capital
markets, inviting foreign investment, reforming the trade regime and capital
markets. Its goal was to reduce the fiscal deficit, privatize the public sector, and
increase infrastructure investment. To open up foreign trade, there were trade
reforms and foreign direct investment regulation.
There was reduction in industrial licensing and only 18 industries needed
licensing. There was rationalized of industrial regulation. The Controller of Capital
Issues was abolished in 1992 which regulated the number and prices of shares a
company can issue. The Security Laws (Amendment) and SEBI Act of 1992 were
introduced. The National Stock Exchange was started as a computer-based
trading system from 1994 and by 1996 it became the largest exchange in the
country. Tariffs were reduced, the rupee was made convertible, foreign direct
investment was encouraged in priority sectors, India's equity markets were
opened up in 1992 for foreign institutional investors. Inefficient loss-inducing
government corporations were also privatized.
The political economy of India also included other later reforms such as forming
Special Economic Zones, initiating the Golden Quadrilateral project for
constructing a network of highways, enacting the Right to Information Act
(2005), Right to Education Bill (2008) and Indo-US civilian nuclear agreement
(2008). The impact of all these reforms is reflected in the amount of foreign
investment which grew to $5.3 billion in 1995-96 from $132 million in 1991-92.
- See more at: http://business.mapsofindia.com/indiaeconomy/political.html#sthash.VYRj6nlY.dpuf

Media organizations: Commercial

Ownerships and Concentrated ownerships
Concentration of media ownership (also known as media consolidation or media convergence)
is a process whereby progressively fewer individuals or organizations control increasing shares of
the mass medi a.[1] Contemporary research demonstrates increasing levels of consolidation, with
many media industries already highly concentratedand dominated by a very small number of firms.[2][3]
Globally, large media conglomerates include Viacom, CBS Corporation, Time Warner, 21st Century
Fox and News Corp (the former News Corporation, split in
2013), Bertelsmann, Sony, Comcast, Vivendi, Televisa, The Walt Disney Company, Hearst
Corporation, Organizaes Globo and Lagardre Group.[4][5][6]
As of 2015, Comcast Corporation is the largest media conglomerate in the US, with The Walt Disney
Company, Twenty-First Century Fox and Time Warner ranking second, third and fourth respectively.[7]

Mergers[edit]
Media mergers are a result of one media related company buying another company for control of their resources in
order to increase revenues and viewership. As information and entertainment become a major part of our culture, media
companies have been creating ways to become more efficient in reaching viewers and turning a profit. Successful
media companies usually buy out other companies to make them more powerful, profitable, and able to reach a larger
viewing audience. Media mergers have become more prevalent in recent years, which has people wondering about the
negative effects that could be caused by media ownership becoming more concentrated. Such negative effects that
could come into play are lack of competition and diversity as well as biased political views.[8]

Media oligopoly[edit]
An oligopoly is when a few firms dominate a market.[9] When the larger scale media companies buy out the more
smaller-scaled or local companies they become more powerful within the market. As they continue to eliminate
their business competition through buyouts or forcing them out (because they lack the resources or finances) the
companies left dominate the media industry and create a media oligopoly.[8]

Risks for media integrity[edit]

Media integrity is at risk when small number of companies and individuals control the media market. Media integrity
refers to the ability of a media outlet to serve the public interest and democratic process, making it resilient to
institutional corruption within the media system, economy of influence, conflicting dependence and political clientelism.
[10]
Media integrity is especially endangered in the case when there are clientelist relations between the owners of the
media and political centres of power. Such a situation enables excessive instrumentalisation of the media for particular
political interests, which is subverting democratic role of the media.

Elimination of net neutrality[edit]

Net neutrality is also at stake when media mergers occur. Net neutrality involves a lack of restrictions on content on the
internet, however, with big businesses supporting campaigns financially they tend to have influence over political issues,
which can translate into their mediums. These big businesses that also have control over internet usage or the airwaves
could possibly make the content available biased from their political stand point or they could restrict usage for
conflicting political views, therefore eliminating Net Neutrality.[9]

In nations described as authoritarian by most international think-tanks and NGOs, media

ownership is generally something very close to the complete state control over information in
direct or indirect ways.

Sources of revenue :
Value added
Reputation
Timeliness
Validation
Format
Visualization
Analysis
Ease of use
Design
Relevance
Synthesis
Tangibility
Filtering
Sense of community
Customization
Advertising
Brand creative
Pay per client
Pay per action/ sale

List rental
Product placement
Content
Subscription
Pay per view
Pay for format
Customized content
Distribution
Syndication
Licensing
Custom feeds
API feeds
Community
Membership
Pay for voting
Pay for messaging/ SMS
Sales of community research
Events
Conferences
Roundtables
Showcases
Access to buyers
Partnerships
Revenue share

Profit share
Share of revenue increase
Brand
Brand licensing
Sponsor fees
Branded products
Branded content
Platform
Sell distribution platform
License platform
Distribution fees
Serve advertising
Merchandising
Books/ research
Music/ video
Clothing
Other
Affiliate
Pay per sale
Pay per registration
Pay per download
Classifieds
Listing fees
Transaction fees

Contextual advertising
Leads
Lead generation
Registration for content
Offers
Enquiry matching

Government and regulations :

Media in India is mostly self-regulated. The existing bodies for regulation of media such as the Press Council of India which is
a statutory body and the News Broadcasting Standards Authority, a self-regulatory organization, issue standards which are
more in the nature of guidelines. Recently, the Chairman of the Press Council of India, former Justice of the Supreme Court,
Mr. M. Katju, has argued that television and radio need to be brought within the scope of the Press Council of India or a similar
regulatory body. We discuss the present model of regulation of different forms of media.
This note was first published at Rediff.
1. What is the Press Council of India (PCI)?
The PCI was established under the PCI Act of 1978 for the purpose of preserving the freedom of the press and of maintaining
and improving the standards of newspapers and news agencies in India.
2. What is the composition of the PCI and who appoints the members?
The PCI consists of a chairman and 28 other members. The Chairman is selected by the Speaker of the Lok Sabha, the
Chairman of the Rajya Sabha and a member elected by the PCI.
The members consist of members of the three Lok Sabha members, two members of the Rajya Sabha , six editors of
newspapers, seven working journalists other than editors of newspapers, six persons in the business of managing newspapers,
one person who is engaged in the business of managing news agencies, and three persons with special knowledge of public
life.
3. What are its functions?
The functions of the PCI include among others (i) helping newspapers maintain their independence; (ii) build a code of conduct
for journalists and news agencies; (iii) help maintain high standards of public taste and foster responsibility among citizens;
and (iv) review developments likely to restrict flow of news.
4. What are its powers?
The PCI has the power to receive complaints of violation of the journalistic ethics, or professional misconduct by an editor or
journalist. The PCI is responsible for enquiring in to complaints received. It may summon witnesses and take evidence under
oath, demand copies of public records to be submitted, even issue warnings and admonish the newspaper, news agency, editor
or journalist. It can even require any newspaper to publish details of the inquiry. Decisions of the PCI are final and cannot be
appealed before a court of law.

5. What are the limitations on the powers of the PCI?

The powers of the PCI are restricted in two ways. (1) The PCI has limited powers of enforcing the guidelines issued. It cannot
penalize newspapers, news agencies, editors and journalists for violation of the guidelines. (2) The PCI only overviews the
functioning of press media. That is, it can enforce standards upon newspapers, journals, magazines and other forms of print
media. It does not have the power to review the functioning of the electronic media like radio, television and internet media.
6. Are there other bodies that review television or radio?
For screening films including short films, documentaries, television shows and advertisements in theaters or broadcasting via
television the Central Board of Film Certification (CBFC) sanction is required. The role of the CBFC is limited to controlling
content of movies and television shows, etc. Unlike the PCI, it does not have the power to issue guidelines in relation to
standards of news and journalistic conduct.
Program and Advertisement Codes for regulating content broadcast on the television, are issued under the Cable Television
Networks (Regulation) Act, 1995. The District magistrate can seize the equipment of the cable operator in case he broadcasts
programs that violate these Codes.
Certain standards have been prescribed for content accessible over the internet under the IT Rules 2011. However, a
regulatory body such as the PCI or the CBFC does not exist. Complaints are addressed to the internet service provider or the
host.
Radio Channels have to follow the same Programme and Advertisement Code as followed by All India Radio. Private television
and radio channels have to conform to conditions which are part of license agreements. These include standards for broadcast
of content. Non-compliance may lead to suspension or revocation of license.
7. Is there a process of self regulation by television channels?
Today news channels are governed by mechanisms of self-regulation. One such mechanism has been created by the News
Broadcasters Association. The NBA has devised a Code of Ethics to regulate television content. The News Broadcasting
Standards Authority (NBSA), of the NBA, is empowered to warn, admonish, censure, express disapproval and fine the
broadcaster a sum upto Rs. 1 lakh for violation of the Code. Another such organization is the Broadcast Editors Association.
The Advertising Standards Council of India has also drawn up guidelines on content of advertisements.
These groups govern through agreements and do not have any statutory powers.
8. Is the government proposing to create a regulatory agency for television broadcasters?
In 2006 the government had prepared a Draft Broadcasting Services Regulation Bill, 2006. The Bill made it mandatory to seek
license for broadcasting any television or radio channel or program. It also provides standards for regulation of content. It is
the duty of the body to ensure compliance with guidelines issued under the Bill.

Social[edit]
Regulation can take many forms: legal restrictions promulgated by a government authority, contractual obligations (for
example, contracts between insurers and their insureds [1]), social regulation (e.g. norms), co-regulation, third-party
regulation, certification, accreditation or market regulation. [2]
State-mandated regulation is government intervention in the private market in an attempt to implement policy and
produce outcomes which might not otherwise occur,[3] ranging from consumer protection to faster growth or
technological advancement. The regulations may prescribe or proscribe conduct ("command-and-control" regulation),
calibrate incentives ("incentive" regulation), or change preferences ("preferences shaping" regulation"). Common
examples of regulation include controls on market entries, prices, wages, development
approvals, pollution effects, employment for certain people in certain industries, standards of production for
certain goods, the military forces and services. The economics of imposing or removing regulations relating
to markets is analysed in regulatory economics.

Regulations may create costs as well as benefits and may produce unintended reactivity effects, such as defensive
practice.[4] Efficient regulations can be defined as those where total benefits exceed total costs.
Regulations can be advocated for a variety of reasons, including: [citation needed]

Market failures - regulation due to inefficiency. Intervention due to what economists call market failure.

To constrain sellers' options in markets characterized by monopoly

As a means to implement collective action, in order to provide public goods

To assure adequate information in the market

To mitigate undesirable externalities

Collective desires - regulation about collective desires or considered judgments on the part of a significant
segment of society[vague]

Diverse experiences - regulation with a view of eliminating or enhancing opportunities for the formation of
diverse preferences and beliefs[vague]

Social subordination - regulation aimed to increase or reduce social subordination of various social groups [citation
needed]

Endogenous preferences - regulation intended to affect the development of certain preferences on an

aggregate level[vague]

Irreversibility - regulation that deals with the problem of irreversibility the problem in which a certain type of
conduct from current generations results in outcomes from which future generations may not recover from at all. [5]

Professional conduct - the regulation of members of professional bodies, either acting

under statutory or contractual powers.[6]

Interest group transfers - regulation that results from efforts by self-interest groups to redistribute wealth in
their favor, which may be disguised as one or more of the justifications above.

The study of formal (legal and/or official) and informal (extra-legal and/or unofficial) regulation constitutes one of the
central concerns of the sociology of law.

Ownership restrictions :
DI volumes are declining globally, as some national governments take a stronger stance against
foreign ownership of their companies and land. The United Nations Council on Trade and
Developments recent report on foreign direct investment trends and policies shows that global
investment inflows are slowing down. They declined by 8% in 2014, to an estimated $1.26 trillion. Last
year saw a rise in restrictions on foreign investments in several key industries, mainly those related to
oil production, data communications and media.

The slowdown in foreign investment can be attributed in part to sluggish economic growth in Europe,
Chinas slowing economy and geopolitical risks in various emerging markets. But investment
restrictions are also playing a part in a variety of markets around the world, including those of some
developed countries.
Several factors continue to drive investment restrictions. Some of the main ones include the
perception that certain industries should be controlled by tightly regulated local institutions to avoid
market failures, the political pressure to build and support local corporate champions, and the need to
continue to provide basic subsidized products and services.
This year is likely to demonstrate a continuation of the trend, especially in regulated industries such as
communications, which is hampered by slow growth globally and will be further affected by elections
and internal political pressures in several countries.
The Australian government, for example, recently announced a lower threshold for foreign investment
review in the agriculture lands space. It did so to better control foreign ownership in farming, so as to
secure Australias national interests. Similar ideas have been proposed with respect to Australias real
estate market. Rising Chinese investments in Australian agriculture have triggered an emotional
national debate on food security and foreign ownership of national assets.
Restrictions on foreign investments in the energy sector, however, may loosen globally. Traditionally,
concerns about energy security and concentrated state-ownership have led to strong restrictions on
energy investments. Low energy prices in early 2015 and shrinking long-term investments in energy
infrastructure by many multinational companies may remove some of these barriers in order to foster
new cross-border investments.
Although corporate executives are usually introduced to investment restrictions during the market
access phase, some of the recent restrictions may impact already-existing investments on the ground.
That could lead to a rise in arbitration cases between investors and governments.

Content regulation :

The recent controversy over the TV programme Sach ka Samna has led to renewed calls for
regulation of the broadcast media. [B]P N Vasanti [/B]who was involved in drawing up self-regulation
guidelines for the broadcasting sector for the I&B ministry, explains the content of the guidelines
which, she says, could have addressed the current issues. Instead, it has been put into cold storage

The recent discussions in the Indian Parliament on a few ongoing programmes currently being aired
on our entertainment channels has once again opened up the debate on media regulation (and
especially regulation of content on television).

I am happy to take this opportunity to write on my experience in developing content regulation in our
country, and to elaborate on the purpose, nature and current status of the code that was developed
for this purpose in 2007. I hope this sharing of efforts made so far on the sensitive issue of content
regulation will help clarify the issues raised by the present debate.

On the website of the Ministry of Information & Broadcasting the proposed content regulation
document is titled Self-Regulation Guidelines for the Broadcasting Sector. There are two versions
the original draft is dated 2007 and a revised draft is dated 2008
([LINK=http://www.mib.nic.in/ShowContent.aspx?
uid1=8&uid2=51&uid3=0&uid4=0&uid5=0&uid6=0&uid7=0]http://www.mib.nic.in/[/LINK]).

Since October 2005, I have been a member of the committee set up by the I&B Ministry to discuss
what kind of content regulation can be adopted for our broadcasting sector, mainly television. This
committee had over 30 representatives from almost all sectors including industry, civil society,
activists, various ministries, etc. This committee sat through six meetings over almost three years,
although I had more intensive sessions within the sub-group set up to actually draft the guidelines.
The Content Code appended to the Broadcasting Services Regulation Bill, 2007 (aka Broadcast Bill
07) was an earlier version drafted by the committee. The final report of the committee was
submitted in March 2008 and is reflected in the revised draft made available then.

[B]Purpose of the guidelines[/B]

The purpose of developing guidelines for content regulation was very clear right from the beginning.
Similar to the current sentiment expressed in Parliament, the general feeling was that broadcasters
were testing the limits and law of the country through provocative programming. In fact, the ministry
was burdened by several legal cases and there were court orders calling for an objective content
code that could be easily implemented. The few sections in the Cable Television Networks
(Regulation) Act (primarily # 6 & 7: see Box) were seen as too vague and subjective for the purpose.
In addition, there were several demands and complaints from viewers, politicians and activists.

Therefore, the purpose was to develop guidelines that are clear, objective and easily implementable.

However, when we started discussions, a number of issues were raised about how the guidelines
would be implemented. This in turn raised the question of who would be responsible for content
regulation in India and thereby for implementing the guidelines. The consensus arrived at was that
the media is ultimately responsible for content regulation. However, it was also accepted that intense
competition and the need to boost revenues led to programming that does not uphold ethics and
standards, especially since the entry barriers for starting broadcasting enterprises had been lowered.
The debate also threw up the ethical and moral issues that can arise in the process of content
regulation. The governments role in regulation was also constantly disputed. Despite the unending
debate on this, there was a consensus that an independent authority was required that would also
look into content issues if broadcasters failed to self-regulate. So the committees report focused
the responsibility of following the code of ethics and standards on the broadcaster in the spirit of selfregulation.

[B]Nature of the guidelines[/B]

The current format of the guidelines evolved after a review of existing regulatory frameworks across
the world and discussions on many versions of the document. The original document prepared by
the Federation of Indian Chambers of Commerce and Industry (FICCI) was an adaptation of a
publication by Ofcom, the independent regulator for the UK communications industries. However, it
seemed rather heavy and could not address all concerns in the Indian context, especially since the
country did not have a similar regulatory system in place.

[I]Section 1[/I]

After many versions and discussions, the final submitted version by this committee to the ministry
was a simple 24-page document divided into two sections: Section I includes a brief introduction,
principles meant to guide regulation and the self-regulatory system that could help ensure ethics and
standards, including mechanisms for complaint redressal.

This section provided a context and purpose for the guidelines. The onus of responsibility for selfregulation of content was on the broadcaster. The self-regulatory mechanism section outlined the

roles, powers and jurisdiction of the three critical players broadcasters, the body/ies representing
the media industry and the independent regulator (the proposed Broadcasting Regulatory Authority
of India \[BRAI] elaborated upon in the Broadcasting Services Regulation Bill 2007). These
stakeholders represented the three-tier system of the redressal mechanism.

[*]The first tier comprises the

special

broadcasters themselves carrying out self-regulation through a

officer (the term content auditor is suggested) who is in charge

guidelines are followed and sending regular reports

[*]The second tier is made up

India

of ensuring that the

to the other tiers on compliance.[/*]

of industry bodies (such as the Advertising Standards Council of

\[ASCI], the Indian Broadcasting Foundation, the News Broadcasters Association,

the lines of the Consumer Complaints Council of the ASCI, which

etc) on

would take up cases involving

any member. [/*]

[*]The third tier is the proposed

independent regulator (eg, BRAI as suggested in the Broadcast Bill)

which would come into the picture only when any complaint or petition

is not resolved at the level of

the other two tiers.[/*]

This proposed system actually resembles a system of co-regulation rather than self- regulation
not leaving accountability just to broadcasters but providing for the resolution of unresolved
complaints/issues by peers in the industry bodies. The external, independent regulator would be
involved mainly in ensuring compliance and resolving issues left unresolved at the level of the
previous two tiers.

This three-tier system was expected to bring in transparency while instilling responsibility in each
stakeholder. Also, most importantly, the sanctity and freedom of the media would not be curbed by
any third party unless individual broadcasters and industry bodies are unable to self-regulate or
resolve audience objections. I believe such a system can also survive the current trust deficit
among all the key stakeholders including broadcasters, the government and the judiciary. Like our
multi-tier governance system (Panchayat, District, State and then National) this proposed coregulatory mechanism can enable a more accountable media landscape in our country.

[I]Section 2[/I]

The second section of the committees report consists of the annexures. The first annexure is a
complete listing of rules and codes that the media still need to be aware of and compliant with. The
second annex is the crux of the exercise: the Certification Rules that each broadcaster requires to
self-regulate.

These rules would replace the existing relevant sections in the Cable Television Network Act to
enable more objective and easily implementable rules. The certification rules relate to nine themes
(Violence & Crime, Harm & Offence, Religion & Community, etc) and include details about subject
matter treatment and audio-visual presentation. There are details within each theme that set out
what would fit into programming categories U, U/A and A. According to this categorisation,
broadcasters are expected to slot their programming into watershed timings guided by the principles
of self-regulation.
[B][I]S

No.[/I][/B]

[B][I]Category of Programme[/I][/B]

[I]Scheduling of programme [/I][/B]

1.

which are suitable for unrestricted viewing

[B]Category

by all viewers)

U[/B] (programmes

At all times

U/A[/B] (programmes which are suitable for restricted viewing

minors above the age of 12 years under parental

3.

[B]Category

[B]Category

guidance)

2.
only by adults or by

8 : 00 pm to 4 : 00 am

A[/B] (programmes which are suitable for restricted viewing only

above the age of 18 years. Adult content shall not be broadcast

platform/ channels.

[B]

by adults

except under/on addressable

11: 00 pm to 4 : 00 am

The audio-visual presentation of all the nine themes are further detailed for these categorisations
(U, U/A or A) as dont in each category. For example, in theme #1 Crime & Violence, Category U
restrictions are not to show excessive blood or gore, dismembered or disfigured limbs or bodies.
Category U/A restrictions are for close ups or prolonged shots of dismembered or disfigured limbs
or bodies and for Category A it states not to show prolonged close-up shots of blood and gore or
dismembered or disfigured bodies.

I felt that detailing each theme in this format provided less vagueness and yet scope for creative
expression and innovation. Of course, these codes are also visualised to be dynamic and to
eventually change with evolving contemporary standards and audience needs.

The implications of this kind of certification can be assessed by thinking in terms of how they could
be used for a programme like Sach ka Samna one of the programmes caught up in the current
controversy. If these rules were applicable today, Sach ka Samna (a category A programme)
would be available only on Addressable Systems (like CAS or DTH) after 11 pm. (Note: addressable
system means an electronic device or more than one electronic devices put in an integrated system
through which signals of television channels can be sent in encrypted or unencrypted form, which

can be decoded by the device or devices at the premises of the subscriber within limits of the
authorisation made, on the choice and request of such subscriber, by the service provider to the
subscriber.) There would be no day repeats or content-based advertisements during the day. Thus
such rules could satisfy the conservatives since such a programme would not be available to the
vulnerable/children, while also addressing the concerns of the liberals who advocate the right of
audiences to choose programmes that they would like to watch. The question, however, would be
whether channels would follow such rules, especially at the cost of their TRPs

Media as part of culture industry :

The term culture industry (German: Kulturindustrie) was coined by the critical theorists Theodor
Adorno (19031969) and Max Horkheimer (18951973), and was presented as critical vocabulary in
the chapter "The Culture Industry: Enlightenment as Mass Deception", of the book Dialectic of
Enlightenment (1944), wherein they proposed that popular culture is akin to a factory producing
standardized cultural goodsfilms, radio programmes, magazines, etc.that are used to
manipulate mass society into passivity.[1]Consumption of the easy pleasures of popular culture, made
available by the mass communications media, renders people docile and content, no matter how
difficult their economic circumstances.[1] The inherent danger of the culture industry is the cultivation of
false psychological needs that can only be met and satisfied by the products of capitalism; thus
Adorno and Horkheimer especially perceived mass-produced culture as dangerous to the more
technically and intellectually difficult high arts. In contrast, true psychological needs
are freedom, creativity, and genuine happiness, which refer to an earlier demarcation of human
needs, established by Herbert Marcuse. (See Eros and Civilization, 1955).[2]
Media Culture : In cultural studies, media culture refers to the current Western capitalist society that
emerged and developed from the 20th century, under the influence of mass media.[1][2][3] The term
alludes to the overall impact and intellectual guidance exerted by the media (primarily TV, but also the
press, radio and cinema), not only on public opinion but also on tastes and values.
The alternative term mass culture conveys the idea that such culture emerges spontaneously
from the masses themselves, like popular art did before the 20th century.[4] The expression media
culture, on the other hand, conveys the idea that such culture is the product of the mass media.
Another alternative term for media culture is "image culture." [1][2]
Media culture, with its declinations of advertising and public relations, is often considered as a system
centered on the manipulation of the mass of society.[5] Corporate media "are used primarily to
represent and reproduce dominant ideologies."[6] Prominent in the development of this perspective
has been the word of Theodor Adorno since the 1940s.[5] Media culture is associated
with consumerism, and in this sense called alternatively "consumer culture." [1][3]
The news media mines the work of scientists and scholars and conveys it to the general public, often
emphasizing elements that have inherent appeal or the power to amaze. For instance, giant
pandas (a species in remote Chinese woodlands) have become well-known items of popular
culture; parasitic worms, though of greater practical importance, have not. Both scholarly facts and
news stories get modified through popular transmission, often to the point of outright falsehoods.

Hannah Arendt's 1961 essay "The Crisis in Culture" suggested that a "market-driven media would
lead to the displacement of culture by the dictates of entertainment."[8] Susan Sontag argues that in
our culture, the most "...intelligible, persuasive values are [increasingly] drawn from the entertainment
industries", which has spelt the "undermining of standards of seriousness." As a result, "tepid, the glib,
and the senselessly cruel" topics are becoming the norm. [8] Some critics argue that popular culture is
"dumbing down": "newspapers that once ran foreign news now feature celebrity gossip, pictures of
scantily dressed young ladies... television has replaced high-quality drama with gardening, cookery,
and other "lifestyle" programmes [and] reality TV and asinine soaps," to the point that people are
constantly immersed in trivia about celebrity culture.[8]
According to Altheide and Snow, media culture means that within a culture, the media increasingly
influences other institutions (e.g. politics, religion, sports), which become constructed alongside a
media logic.[9] Since the 1950s, television has been the main medium for molding public opinion.[10]
In Rosenberg and White's book Mass Culture, Dwight Macdonald argues that "Popular culture is a
debased, trivial culture that voids both the deep realities (sex, death, failure, tragedy) and also the
simple spontaneous pleasures... The masses, debauched by several generations of this sort of thing,
in turn come to demand trivial and comfortable cultural products." [8] Van den Haag argues that "all
mass media in the end alienate people from personal experience and though appearing to offset it,
intensify their moral isolation from each other, from the reality and from themselves." [8][11]
Critics have lamented the "replacement of high art and authentic folk culture by tasteless
industrialised artefacts produced on a mass scale in order to satisfy the lowest common
denominator."[8] This "mass culture emerged after the Second World War and have led to the
concentration of mass-culture power in ever larger global media conglomerates." The popular press
decreased the amount of news or information and replaced it with entertainment or titillation that
reinforces "fears, prejudice, scapegoating processes, paranoia, and aggression."[8] Critics of television
and film have argued that the quality of TV output has been diluted as stations pursue ratings by
focusing on the "glitzy, the superficial, and the popular". In film, "Hollywood culture and values" are
increasingly dominating film production in other countries. Hollywood films have changed from
creating formulaic films which emphasize "shock-value and superficial thrill[s]" and the use of special
effects, with themes that focus on the "basic instincts of aggression, revenge, violence, [and] greed."
The plots "often seem simplistic, a standardized template taken from the shelf, and dialogue is
minimal." The "characters are shallow and unconvincing, the dialogue is also simple, unreal, and
badly constructed."[8]
More recently, scholars turned to the concept of the mediatization of culture to address the various
processes through which culture is influenced by the modus operandi of the media. On one hand, the
media are cultural institutions and artifacts of their own, on the other hand, other domains have
become dependent on the media and their various affordances.

Foreign equity in Indian media

FOREIGN DIRECT INVESTMENT IN INDIAN MEDIA & ENTERTAINMENT INDUSTRIES

Entertainment and media industry is gaining lot of importance in India. India's

media and entertainment industry is projected to grow by 18 per cent over the
next five years and is expected to become a 1.157 trillion industry by 2012.
Further, online entertainment is the next big thing for studios and broadcasters.
The biggest changes are expected in the Internet, television distribution, video
games and casinos sectors.
Media and entertainment such as film, television, advertising, prints media and
music industry among others are growing rapidly in India. The media and
entertainment industry in India is likely to grow 12.5 per cent per annum over
the next five years and touch US$ 20.09 billion by 2013.
Foreign Direct Investment upto 100 percent is allowed in most of the sectors,
more specifically,
For Film Industry
Upto 100%
For Radio Industry
Upto 20%
For Print Media
- Upto 74% publishing scientific/technical and specialty
magazines/periodicals/journals
- Upto 26% publishing newspapers and periodicals dealing in news
INVESTMENT OPPORTUNITIES
Theatre/ Multiplex Infrastructure
Television Segment
Film Entertainment
Animation Segment
Print Media
Mobile Entertainment
Television Software Content
Advertising
RECENT STEPS FOR THE IMPROVEMENTS OF MEDIA & ENTERTAINMENT
INDUSTRY

Allowing 49 per cent foreign holding in cable TV and DTH.

The government has allowed 100 per cent FDI in fax editions of magazines
and newspapers.

Recently, the government has allowed companies with core business in

news segment but ved off non-news business, to raise funds from overseas beyond

the stipulated FDI limit of 26 per cent. Such companies can raise and route funds
from overseas through its non-news arm, which will not be calculated as foreign
investment.

Permitting setting up of up linking hubs for satellite up linking by private

TV broadcasters from Indian soil.

Giving industry status to the films segment.

Opening FM Radio operations to the private sector.

The government has allotted US$ 50.13 million in the current Five-YearPlan for various development projects of the film industry. The funds will
be utilized to set up a centre for excellence in animation, gaming and
visual effects among others.

International film studios such as Warner Bros., Disney, Fox and DreamWorks
have collaborated with local film production houses to develop Hindi and regional
films. Some recent investments in the M&E industry by global players includes 3:

US based investment firm Tiger Global Management LLC has acquired a 25

per cent stake in 'The Viral Fever' (TVF), an online video content creator,
for US$ 10 million.

Balaji Telefilms Limited has raised Rs 150.08 crore (US$ 22.09 million)
through allotment of equity shares on preferential basis to catapult the
launch and growth of ALT Digital Media, a Business-to-Consumer digital
content business segment of Balaji Group.

Reliance Entertainment (owned by Mr Anil Ambani) and DreamWorks (led

by Mr Steven Spielberg), along with Participant Media (led by Mr Jeff Skoll)
and Entertainment One (eOne) have formed a new film, television and
digital content creation company called Amblin Partners, and have raised
US$ 500 million in debt to develop and produce films.

Walt Disney, who earlier held a 50% stake in UTV, has now acquired a
controlling stake in UTV Software Communications.

MEDIA GLOBALISATION

Media globalisation deals with the pivotal role that the media
play in the more general globalisation process
The subject of media globalisation is primarily concerned with the
domination of the global media industry by a small number of powerful

transnational media conglomerates, and the extent to which these impact

upon the worldviews of individuals in different parts of the world.
Transnational is preferred to multinational when describing global
media conglomerates
Companies operate as if they are purely regional/national/local companies
despite being part of a global setup
i.e. HSBC, Daimler-Chrysler, DHL, UPS etc
Three senses of media
1) Technological means of communication
Media extension of medium
plural term
transmission model of communication
refer to a range of communicative praxis or practices, including:
infrastructure, telecommunications, flows, etc.
2) Institutional and organizational forms through which media
content is produced and distributed.
the notion of industries as in global media industries as well as the
market
Flew (p. 3): The term market is used to incorporate a variety of forms of
transactions between agents
producers & consumers or prod-Users & pro-Sumers?
3) Informational and symbolic content that is received and
consumed by readers, audiences and users.
i.e. the socio-cultural context of reception.
Which leaves us to consider:

Media and power

Media markets

Media institutions and policy

Media and culture

New Media Technology

6 distinct features
of media globalisation

1. Concentration, Conglomeration (& Corporatisation): The emergence

of and continued domination of the global media industry by a small
number of transnational media conglomerates (as mentioned earlier).

2. Technological Change: The extent of new information and

communications technologies use by these media conglomerates.
3. Deregulation: The increasingly deregulated environment in which these
media organisations operate
4. Cultural Imperialism: The globalisation of media content, leading to
greater amount of homogenisation and standardisation of media product
5. Asymmetrical Flows: The uneven flow and distribution of information
and communication (media) products within the global system and the
different level of access that global citizens have to global networks of
communication.
6. Ideology of Capitalism: Media globalisation is inextricably linked with
the promotion of the ideology of consumerism and therefore bound up
with the capitalist project

Global Media Giants

A global commercial media system dominated by a small number of super
powerful, mostly U.S.-based transnational media corporations. It is a system that
works to advance the cause of the global market and promote commercial
values, while denigrating journalism and culture not conducive to the immediate
bottom line or long-run corporate interest.
There are a lot of companies which are trying to become one of the Global media
giants company but they usually fail because of the continuous success of the
companies such as Disney, Viacom, TimeWarner etc.
Walt Disney is the on the top of the most Profitable media companies in the
world;Global Media Giant.
See the list at the bottom of this page of the Ten most profitable media
companies in the world.
The two golden rules those companies have followed in order to achieve
success are the following:
1) "Get bigger so you dominate markets and your competition can't buy
you out. "
2) "Have interests in numerous media industries, such as film
production, book publishing, music, TV channels and networks, retail

stores, amusement parks, magazines, newspapers and the like...firms

that do not have conglomerated media holdings simply cannot compete
in this market. "
In some ways, the emerging global commercial media system is not an
entirely negative proposition. It occasionally promotes anti-racist, antisexist or anti-authoritarian messages that can be welcome in some of
the more repressive corners of the world. But on balance the system
has minimal interest in journalism or public affairs except for that which
serves the business and upper-middle classes, and it privileges just a
few lucrative genres that it can do quite well--like sports, light
entertainment and action movies--over other fare. Even at its best the
entire system is saturated by a hyper- commercialism, a veritable
commercial carpetbombing of every aspect of human life.

VIACOM
C.E.O. Sumner Redstone, who controls 39 percent of Viacoms
stock, orchestrated the deals that led to the acquisitions of Paramount
and Blockbuster in 1994, thereby promoting the firm from $2 billion in
1993 sales to the front ranks. Viacom generates 33 percent of its income
from its film studios, 33 percent from its music, video rentals and
theme parks, 18 percent from broadcasting, and 14 percent from
publishing. Redstones strategy is for Viacom to become the worlds
premier software driven growth company.
Viacoms two main weapons are Nickelodeon and MTV.
Nickelodeon has been a global powerhouse, expanding to every
continent but Antarctica and offering programming in
several languages. It is already a world leader in childrens
television, reaching 90 million TV households in 70 countries other than
the United Stateswhere it can be seen in 68 million households and
completely dominates childrens television.

Viacom selected holdings

Thirteen U.S. television stations;
A 50 percent interest in the U.S. UPN television network with
Chris-Craft Industries;
U.S. and global cable television networks, including MTV,
M2, VH1, Nickelodeon, Showtime,
TVLand and Paramount Networks;
A 50 percent interest in Comedy Central channel (with Time
Warner);
Film, video and television production, including Paramount Pictures;
50 percent stake in United Cinemas International, one of the worlds
three largest theater companies;
Blockbuster Video and Music stores, the worlds largest video rental
stores;
Book publishing, including Simon & Schuster, Scribners and
Macmillan;
Five theme parks.

News Corporation

The News Corporation is often identified with its head, Rupert

Murdoch, whose family controls some 30 percent of its stock. Murdochs
goal is for News Corporation to own multiple forms of programmingnews,
sports, films and childrens showsand beam them via satellite or TV
stations to homes in the United States, Europe, Asia and South America.
Viacom CEO Sumner Redstone says of Murdoch that he basically wants to
conquer the world.
And he seems to be doing it. Redstone, Disney CEO Michael Eisner, and
Time Warner CEO Gerald Levin have each commented that Murdoch is the one
media executive they most respect and fear, and the one whose moves they
study. TCIs John Malone states that global media vertical integration
is all about trying to catch Rupert. Time Warner executive Ted Turner
views Murdoch in a more sinister fashion, having likened him to Adolf
Hitler.

News Corporation selected holdings

The U.S. Fox broadcasting network;
Twenty-two U.S. television stations, the largest U.S. station group,
covering over 40 percent of U.S. TV households;
Fox News Channel;
A 50 percent stake (with TCIs Liberty Media) in several U.S. and
global cable networks, including fx, fxM and Fox Sports
Net;
50 percent stake in Fox Kids Worldwide, production studio and owner
of U.S. cable Family Channel;
Ownership or major interests in satellite services reaching Europe,
U.S., Asia, and Latin America, often under the Sky Broadcasting brand;
Twentieth Century Fox, a major film, television and video production
center, which has a library of over 2,000 films to exploit;
Some 132 newspapers (primarily in Australia, Britain and the United
States, including the London Times and the New York Post),

making it one of the three largest newspaper groups in the world;

Twenty-five magazines, most notably TV Guide;
Book publishing interests, including HarperCollins;
Los Angeles Dodgers baseball team.

Time Warner

Time Warner, the largest media corporation in the world, was formed in 1989
through the merger of Time Inc. and Warner Communications. In 1992, Time
Warner split off its entertainment group, and sold 25 percent of it to U.S. West,
and 5.6 percent of it to each of the Japanese conglomerates Itochu and Toshiba.
It regained from Disney its position as the worlds largest media firm with the
1996 acquisition of Turner Broadcasting.
Music accounts for just over 20 percent of Time Warners business, as does the
news division of magazine and book publishing and cable television news. Time
Warners U.S. cable systems account for over 10 percent of income. The
remainder is accounted for largely by Time Warners extensive entertainment
film, video and television holdings. Time Warner is a major force in virtually every
medium and on every continent.
Time Warner selected holdings

Majority interest in WB, a U.S. television network launched in 1995 to

provide a distribution platform for Time Warner films and programs. It is carried
on the Tribune Companys 16 U.S. television stations, which reach 25 percent
of U.S. TV households;

Significant interests in non-U.S. broadcasting joint ventures;

The largest cable system in the United States, controlling 22 of the largest
100 markets;

Several U.S. and global cable television channels,

including CNN, Headline News, CNNfn, TBS, TNT, Turner Classic
Movies, The Cartoon Network and CNN-SI (a cross-production with Sports
Illustrated);

Partial ownership of the cable channel Comedy Central and a controlling

stake in Court TV;

HBO and Cinemax pay cable channels;

Minority stake in PrimeStar, U.S. satellite television service;

Warner Brothers and New Line Cinema film studios;

More than 1,000 movie screens outside of the United States;

A library of over 6,000 films, 25,000 television programs, books, music and
thousands of cartoons;

Twenty-four magazines, including Time, People and Sports Illustrated;

Fifty percent of DC Comics, publisher of Superman, Batman and 60 other

titles;

The second largest book-publishing business in the world, including TimeLife Books (42 percent of sales outside of the United States) and the Book-ofthe-Month Club;

Warner Music Group, one of the largest global music businesses with
nearly 60 percent of revenues from outside the United States;
Six Flags theme park chain; The Atlanta Hawks and Atlanta Braves
professional sports teams; Retail stores, including over 150 Warner Bros. stores
and Turner Retail Group; Minority interests in toy companies Atari and Hasbro.

Disney

Disney is the closest challenger to Time Warner for the status of worlds largest media firm.
In the early 1990s, Disney successfully shifted its emphasis from its theme parks and resorts
to its film and television divisions. In 1995, Disney made the move from being a dominant
global content producer to being a fully integrated media giant with the purchase of Capital
Cities/ABC for $19 billion, one of the biggest acquisitions in business history.
Disney now generates 31 percent of its income from broadcasting, 23 percent from theme
parks, and the balance from creative content, meaning films, publishing and
merchandising. The ABC deal provided Disney, already regarded as the industry leader at
using cross-selling and cross-promotion to maximize revenues, with a U.S. broadcasting
network and widespread global media holdings to incorporate into its activities.
Historically, Disney has been strong in entertainment and animation, two areas that do well
in the global market. Disney reorganized, putting all its global television activities into a
single division, Disney/ABC International Television. Its first order of business is to expand
the children- and family-oriented Disney Channel into a global force, capitalizing upon the
enormous Disney resources. Disney is also developing an advertising-supported childrens
channel to complement the subscription Disney Channel.
With the purchase of ABCs ESPN, the television sports network, Disney has possession of
the unquestioned global leader. ESPN has three U.S. cable channels, a radio network with
420 affiliates, and the ESPN Sports-Zone website, one of the most heavily used locales on the
Internet. One Disney executive notes that with ESPN and the family-oriented Disney
Channel, Disney has two horses to ride in foreign markets, not just one.
ESPN International dominates televised sport, broadcasting on a 24-hour basis in 21
languages to over 165 countries. It reaches the one desirable audience that had eluded
Disney in the past: young, single, middle-class men. Our plan is to think globally but to
customize locally, states the senior VP of ESPN International. In Latin America the
emphasis is on soccer, in Asia it is table tennis, and in India ESPN provided over 1,000
hours of cricket in 1995.

Disney selected holdings

The U.S. ABC television and radio networks;
Ten U.S. television stations and 21 U.S. radio stations;

U.S. and global cable television channels Disney

Channel, ESPN, ESPN2and ESPNews; holdings in Lifetime, A &
E and History channels;
Americast, interactive TV joint venture with several telephone companies;
Several major film, video and television production studios including Disney,
Miramax and Buena Vista;
Magazine and newspaper publishing, through its subsidiaries, Fairchild Publications
and Chilton Publications;
Book publishing, including Hyperion Books and Chilton Publications;
Several music labels, including Hollywood Records, Mammoth Records and Walt
Disney Records;
Theme parks and resorts, including Disneyland, Disney World and stakes in major
theme parks in France and Japan;
Disney Cruise Line;
DisneyQuest, a chain of high-tech arcade game stores;
Controlling interests in the NHL Anaheim Mighty Ducks and major league baseballs
Anaheim Angels;
Consumer products, including more than 550 Disney retail stores worldwide.

Module 3 :

Overview of Indian media market :

The Indian media and entertainment (M&E) industry is one of the fastest growing industries in the country. Its various
segmentsfilm, television, advertising, print media, music and digital among othershas witnessed tremendous growth
in the last few years.

The digital medium has come to its own and is among the fastest growing segments. While the overall Indian media and
entertainment industry witnessed muted growth of 11.8 per cent in 2013, digital advertising and gaming recorded stellar
growth rates of close to 40 per cent. "Digital grew upon a much larger base than last year," said Jehil Thakkar, Head
(Media & Entertainment Practice), KPMG. Digital advertising last year comprised eight per cent of the overall advertising
pie in 2013 compared to five per cent last year.

As per a FICCIKPMG report, Indias M&E industry reaches 161 million TV households; 94,067 newspapers; about
2000 multiplexes; and 214 million internet users, of which 130 million access the Internet on their mobile phones.

The television industry in India, which was estimated at Rs 41,720 crore (US$ 6.94 billion) in 2013, is projected to
increase at a compound annual growth rate (CAGR) of 16.2 per cent over 201318, to reach Rs 88,500 crore (US$
14.72 billion) by 2018.

With an estimated market size of US$ 5 billion, India is the 14th biggest advertising market globally, as per the latest
edition of the Gunn Report. Digital advertising is also expected to witness a CAGR of 27.7 per cent by 2018.

Indias M&E industry will continue to bank on the digital area in future. With a growing internet user base of over 200
million, the industrys potential to generate revenue is vast. In 2013, telecom companies started focusing on data as a
way to generating revenue. Also, advertising agencies competed with each other to acquire the social media and digital
domains. These developments suggest a bright future for the M&E industry in the country.

The Indian media industry has tremendous scope for growth in all the segments due
to rising incomes and evolving lifestyles. Media is consumed by audience across
demographics and various avenues such as television, films, out of home (OOH),
radio, animation and visual effect (VFX), music, gaming, digital advertising, and print.
In India, the Media & Entertainment industry was worth US$ 17.0 billion in 2014. The
market size of the industry is anticipated to grow at a Compound Annual Growth
Rate (CAGR) of 13.98 per cent during 2014-18 to reach US$ 32.7 billion.
With 168 million television households in 2014, India is the third largest television
market in the world with US$ 7.9 billion in revenue. The country has one of the
largest broadcasting industries in the world with approximately 800 satellite television
channels, 242 FM channels and more than 100 operational community radio
networks. The Indian film industry is the largest producer of films globally with 400
production and corporate houses involved in film production.
The Government of India has supported this sector's growth by taking various
initiatives such as digitising the cable distribution sector to attract greater institutional
funding, increasing Foreign Direct Investment (FDI) limit from 74 per cent to 100 per
cent in cable and Direct-to-home (DTH) satellite platforms, and granting industry
status to the film industry for easy access to institutional finance. Cumulative foreign
direct investment (FDI) inflows into the sector stood at US$ 4 billion between April
2000 and May 2015.

Industry reports on Indian media market :

The Indian media and entertainment industry comprises of print, electronic, radio, internet and
outdoor segments. With the government aggressively pushing in for digitization of TV, Multi System

Cable Operators (MSOs) are expected to lose 15-20% of their subscribers to DTH (direct-to-home)
services. Digitization will facilitate increased number of channels and high quality viewing. India is a
fast digitizing market and the consumer shift towards digital services is exhibited through the
expansion of digitized households. The completion of the digitization process in Phase I and Phase II
cities and the rollout in Phase III and Phase IV cities is seen as a positive step for the industry.

The players in the electronic media can be

classified into a three-link chain. First are the
studios (including the animation studios), which
comprise the hardware part of the industry, the
second are the content providers and the third
link comprises the distribution trolleys, which
include the cable and satellite channels, multiplex
theatres, MSOs and the DTH players.

In India, the ratio of advertising expenditure to

GDP is less than 1%. This is substantially lower in
comparison to the developed economies as well
as other developing economies. Interestingly,
Print and TV media contribute over 75% of the
advertisement spend in a year. As the Indian
economy continues to develop and the media
reach increases, the advertising expenditure to
GDP ratio is expected to increase over the next 5
years.

Key Points
Supply
Of the more than 70,000 newspapers printed in India, around 90% are published
in Hindi and other vernacular languages. There are over 800 private satellite TV
channels, permitted by the Information and Broadcasting Ministry.
Demand
The demand for regional print media is growing at a faster pace than that of
English language print media. In the electronic media, the highly fragmented
viewership has led to an increasing preference for niche channels.
Barriers to
entry

Bargaining
power of
suppliers

In the electronic media, entry barriers are high for broadcasting since it is very
capital-intensive. It involves the cost of leasing the transponder, setting up uplinking facilities, setting up pre and post-production facilities. The barriers to entry
are far lower for content providers. Besides, broadcasters themselves commission
programmes and finance their production. Hence margins are lower. In spite of
the high barriers to entry a slew of channels across languages and genres have
been launched in the recent past.

In the print media, it is high for newsprint suppliers. It is medium to low for content
providers in the electronic media. Terrestrial broadcasters such as Doordarshan
and regional broadcasters such as Sun TV actually commission time slots to

content providers.
Bargaining
power of
customers

Relatively high in both print and electronic media. The consumer finds a surfeit of
players to choose from. Conditional access system (CAS) and DTH services now
enable the consumer to choose the channels that he wishes to view; thereby
increasing his bargaining power.

Competition
High in print media, especially in Hindi dailies. The print sector includes listed
entities like Jagran Prakashan and HT Media. Regional print media too is seeing
increasing competition. Competition is high amongst broadcasters especially for
general entertainment channels. The space includes listed entities like Zee TV, TV
18, UTV, NDTV and Sun TV.
TOP

Financial Year
'15

On the back of a sombre FY14, FY15 proved to be yet another tough year for the media industry.
The delay in pick up in economic activity continued to impact advertisement spends. This
impacted revenues of media companies as they derive a substantial chunk of their revenues from
this segment.

In the print space, efforts are being seen towards consolidation of business rather than aggressive
expansions. The fall of rupee and its volatility during the year hurt the bottom line of the print
media companies as the cost of imported materials saw big swings.

The electronic media industry did mature to a considerable extent, especially after the roll-out of
digitization Phase I and II. The growth trend for subscription revenues largely depends on the
pace of the roll out of Phase III and IV of digitization. The timely roll out of these phases will
certainly benefit the industry. While digitization in Phase I and Phase II cities are already
completed, the rollout of digitization process in Phase III and Phase IV cities of the country during
the year signified a positive development for the industry which is expected to boost subscription
revenues in the future. Advertisement revenues for the television industry, on the other side, have
continued to grow in line with overall media industrys ad spends with the pace expected to pick up
in the future.
TOP

Prospects

The fortunes of the media industry are linked to the growth of the economy. India is set to grow at
a rate of at least 6-7% over the long term. Rising incomes in the hands of people encourage them
to spend more on discretionary items like media and entertainment. However, the trend is shifting
more towards the online medium.

The demographic profile of India also favours higher spend on entertainment, with the consuming
class forming a sizeable chunk of the country's total households. Thus, this could lead to the
emergence of a huge consumer base for the various products and services (including
entertainment).

New distribution technologies like DTH, Conditional Access System (CAS) and IPTV, hold the
future of the media industry as increasing digitization will radically alter the ways in which
consumers receive channels. The mandatory digitization all over India will bring in more
subscription revenues for the broadcasters as opposed to under reporting of numbers by cable
operators at present. Also, continued growth of regional media and growing strength of the filmed
entertainment sector will also boost growth of the media industry.

The advent of digital platforms will require industry participants to invest in constant innovation in
products and services. Thus, going forward, innovation will be the key to attract more consumers
and deliver relevant content and services that are profitable too.

With metros already being saturated, regional markets provide ample scope for growth in the
media sector. In print media, newspapers are being published in vernacular language. In
television, newer channels are introduced in local languages. Tier II and Tier III cities and towns
are set to drive the Indian consumption story in the next few years. Television will continue to lead
the media industry in terms of revenue contribution with 39%, followed by internet access with 28
%. While, the share of print and films are likely to decrease to 15% and 9% in 2017.

New media industry

New media most commonly refers to content available on-demand through the Internet,
accessible on any digital device, usually containing interactive user feedback and creative
participation. Common examples of new media include websites such as online
newspapers, blogs, wikis, video games and social media. A defining characteristic of new media is
dialogue. New Media transmit content through connection and conversation. It enables people
around the world to share, comment on, and discuss a wide variety of topics. Unlike any of past
technologies, New Media is grounded on an interactive community.[1]
Most technologies described as "new media" are digital, often having characteristics of being
manipulated, networkable, dense, compressible, and interactive.[2] Some examples may be
the Internet, websites, computer multimedia, video games, virtual reality, augmented reality, CDROMS, and DVDs. New media are often contrasted to "old media", such as television, radio, and
print media, although scholars in communication and media studies have criticised rigid
distinctions based on oldness and novelty. New media does not include television programs (only
analog broadcast), feature films, magazines, books, unless they contain technologies that
enable digital generative or interactive processes. [3] Wikipedia, an online encyclopedia, is an
example, combining Internetaccessible digital text, images and video with web-links, creative
participation of contributors, interactive feedback of users and formation of a participant
community of editors and donors for the benefit of non-community readers. Facebook is an
example of the social media model, in which most users are also participants. Wikitude is an
example for augmented reality. It displays information about the users' surroundings in a mobile
camera view, including image recognition, 3D modeling and location-based approach to
augmented reality. The newness of "New" Media being constantly challenged, and the frequent

injunction of a "pure" use of the media, lead to the concept of "Open Media" to be taken as an
hybridation of media taking advantage of the potential and outcomes of New media mutations but
open to old media Maurice Benayoun (2001, 2011).
The new media industry shares an open association with many market segments in areas such
as software/video game design, television, radio, mobile and particularly
movies, advertising and marketing, through which industry seeks to gain from the advantages of
two-way dialogue with consumers primarily through the Internet. As a device to source the ideas,
concepts, and intellectual properties of the general public, the television industry has used new
media and the Internet to expand their resources for new programming and content. The
advertising industry has also capitalized on the proliferation of new media with large agencies
running multimillion-dollar interactive advertising subsidiaries. Interactive websites and kiosks
have become popular. In a number of cases advertising agencies have also set up new divisions
to study new media. Public relations firms are also taking advantage of the opportunities in new
media through interactive PR practices. Interactive PR practices include the use of social
media[34] to reach a mass audience of online social network users.
With the rise of the Internet, many new career paths were created. Before the rise, many technical
jobs were seen as nerdy. The Internet led to creative work that was seen as laid-back and diverse
amongst sex, race, and sexual orientation. Web design, gaming design, webcasting, blogging, and
animation are all creative career paths that came with this rise. At first glance, the field of new
media may seem hip, cool, creative and relaxed. What many don't realize is that working in this
field is tiresome. Many of the people that work in this field don't have steady jobs. Work in this field
has become project-based. Individuals work project to project for different companies. Most
people are not working on one project or contract, but multiple ones at the same time. Despite
working on numerous projects, people in this industry receive low payments, which is highly
contrasted with the techy millionaire stereotype. It may seem as a carefree life from the outside,
but it is not. New media workers work long hours for little pay and spend up to 20 hours a week
looking for new projects to work on.[35]