Media Broadcasting

Executive Summary
The global Broadcasting Industry has gone through major technological advances in
the recent past, with features such as IPTV, VOD (Video on demand), Mobile TV and DVR’s
(Digital Video Recorders etc), becoming increasingly common. At the same time, the future
of advertisements, which constitute a large proportion of the broadcasting revenue, has
become uncertain with the advent of technologies that allow ad skipping. The leading players
in the market are forced to adapt technology, though they are unsure of the potential of these
technologies in the medium-long term future. This paper attempts to explore the possible
future for Broadcasting Industry in the next 5-10 years, when business models involving user
generated content will be common. Digital cinema/(via satellites)/ , specific advertisement for
niche audiences, multiple platforms for ads, prompt feedback for content and effective
metrics for measuring ROI all seem to be a reality. No longer would people say
“Advertisements work half of the time, but we don’t know which half”. While some players
have developed in-house capabilities for embracing the same, most have outsourced it to
leading solution providers such as IBM, Siemens etc. IT solution providers can look at these
offerings, and develop a short term vision of back end work and medium long term
projections of hi-tech technology solutions to grab the opportunity, such as the mandate
“Digital TV switch by 2009”, in the USA.

Broadcasting Industry, which includes Radio Stations, Television (Cable, Satellite,

Broadcast, and Interactive), Internet (online content), online music, film production and
distribution, has seen a huge number of technological changes in the last few years Digital
video recorders (DVR’s) are becoming increasingly common allowing advertisements to be
skipped easily and hence forcing a rethink of the traditional advertising model for earning
revenue. Due to availability of high speed internet, video streaming is becoming increasingly
popular. Most big players in the US have started providing paid online subscriptions of
popular series. Video on mobile has also gained momentum in the developed world. Also,
blogs like MySpace have changed the business model by adding a new dimension of paid
content (i.e. user generated content). Technology is only expected to grow faster in the future.
Perhaps, we are in the era where the definition of the Broadcasting industry is being redefined
due to such immense changes in path breaking innovations. Because of the huge gamut of
technological innovations in the field, it is perhaps not even possible to understand each of
them individually. No major player can afford not to restructure its business by aligning with
latest technologies. At such a time, most IT solution providers (especially firms such as IBM,
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Accenture, Infosys, Wipro and Satyam) have started looking at broadcasting as a key revenue
generating area. Along with conventional verticals such as Banking, Insurance, Finance,
Healthcare and Telecommunications, most key Tier 1 and Tier 2 IT players in India have
launched a specialized Broadcasting (or Media and Entertainment ) vertical in the last few
years. However, firms are not still sure how they can possibly leverage these rapidly
changing technological changes to their benefit by aligning the changes with their
fundamental business model. This paper tries to address some of those issues and suggests
few areas of critical importance for these firms.

Television broadcasters operate studios and facilities for the programming and
transmission of programs to the public. These establishments also produce or transmit visual
programming to affiliated broadcast television stations, which in turn broadcast the programs
to the public on a predetermined schedule. Programming may originate in their own studios,
from an affiliated network, or from external sources.

Broadcasting is the distribution of audio and/or video signals which transmit programs to an
audience. The audience may be the general public or a relatively large sub-audience, such as
children or young adults.

Copyright, Designs and Patents Act of 1988 defines a broadcast as

"A transmission by wireless telegraphy of visual images, sounds, or other information which
is capable of lawful reception by the public or which is made for presentation to the public".
Thus, it covers radio, television, and telephones.

Back ground
Television broadcasting
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There are several broadcast television systems in use in the world today. An analogue
television system includes several components: a set of technical parameters for the broadcast
signal, a system for encoding color, and possibly a system for encoding multi-channel audio.
In digital television, all of these elements are combined in a single digital transmission
system.
Analogue television system
All but one analogue television system began life in monochrome. Each country,
faced with local political, technical, and economic issues, adopted a color system which was
effectively grafted onto an existing monochrome system, using gaps in the video spectrum
(explained below) to allow the color information to fit in the channels allotted. In theory, any
color system could be used with any monochrome video system, but in practice some of the
original monochrome systems proved impractical to adapt to color and were abandoned when
the switch to color broadcasting was made. All countries use one of three color
systems: NTSC, PAL, or SECAM.

Frames
Ignoring color, all television systems work in essentially the same manner. The
monochrome image seen by a camera (now, the luminance component of a color image) is
divided into horizontal scan lines, some number of which make up a single image or frame. A
monochrome image is theoretically continuous, and thus unlimited in horizontal resolution,
but to make television practical, a limit had to be placed on the bandwidth of the television
signal, which puts an ultimate limit on the horizontal resolution possible. When color was
introduced, this limit of necessity became fixed. All current analogue television systems
are interlaced; alternate rows of the frame are transmitted in sequence, followed by the
remaining rows in their sequence. Each half of the frame is called a field, and the rate at
which fields are transmitted is one of the fundamental parameters of a video system. It is
related to the frequency at which the electric power grid operates, to avoid flicker resulting
from the beat between the television screen deflection system and nearby mains generated
magnetic fields. All digital, or "fixed pixel", displays have progressive scanning and must de
interlace an interlaced source. Use of inexpensive de interlacing hardware is a typical
difference between lower- vs. higher-priced flat panel displays (PDP, LCD, etc.).

All movies and other filmed material shot at 24 frames per second must be transferred to
video frame rates in order to prevent severe motion jitter effects. Typically, for 25 frame/s
formats (countries with 50 Hz mains supply), the content is sped up, while a techniques
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known as "3:2 pull down" is used for 30 frame/s formats (countries with 60 Hz mains supply)
to match the film frames to the video frames without speeding up the play back.

Viewing technology

Analog television signal standards are designed to be displayed on a cathode ray tube (CRT),
and so the physics of these devices necessarily controls the format of the video signal. The
image on a CRT is painted by a moving beam of electrons which hits a phosphor coating on
the front of the tube. This electron beam is steered by a magnetic field generated by
powerful electromagnets close to the source of the electron beam.

In order to reorient this magnetic steering mechanism, a certain amount of time is required
due to the inductance of the magnets; the greater the change, the greater the time it takes for
the electron beam to settle in the new spot.

For this reason, it is necessary to shut off the electron beam (corresponding to a video signal
of zero luminance) during the time it takes to reorient the beam from the end of one line to
the beginning of the next (horizontal retrace) and from the bottom of the screen to the top
(vertical retrace or vertical blanking interval). The horizontal retrace is accounted for in the
time allotted to each scan line, but the vertical retrace is accounted for as phantom
lines which are never displayed but which are included in the number of lines per frame
defined for each video system. Since the electron beam must be turned off in any case, the
result is gaps in the television signal, which can be used to transmit other information, such as
test signals or color identification signals.
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The temporal gaps translate into a comb-like frequency spectrum for the signal, where the
teeth are spaced at line frequency and concentrate most of the energy; the space between the
teeth can be used to insert a color subcarrier.

Hidden signaling
Broadcasters later developed mechanisms to transmit digital information on the phantom
lines, used mostly for tale text and closed captioning:

• PAL-Plus uses a hidden signaling scheme to indicate if it exists and if so what

operational mode it is in.

• NTSC has been modified by the Advanced Television Standards

Committee to support an anti-ghosting signal that is inserted on a non-visible
scan line.

• Tele text uses hidden signaling to transmit information pages.

• NTSC Closed Captioning signaling uses signaling that is nearly identical

to tale signaling.

• Widescreen All 625 line systems incorporate pulses on line 23 that flag to the
display that a 16:9 widescreen image is being broadcast, though this option is not
currently used on analogue transmissions.
Over scan
Television images are unique in that they must incorporate regions of the picture with
reasonable-quality content that will never be seen by some viewers.

For more information, see over scan in television.

Interlacing
Main article: Interlace

In a purely analogue system, frame order is merely a matter of convention. For

digitally recorded material it becomes necessary to rearrange the sub frame order when
conversion takes place from one standard to another.

Image polarity
Another parameter of analogue television systems, minor by comparison, is the choice
of whether vision modulation is positive or negative. In positive modulation, the maximum
luminance value is represented by the maximum carrier power; in negative modulation, the
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maximum luminance value is represented by a zero carrier power. Most current video
systems were defined to use negative modulation since this system has a far greater immunity
to noise. The original 405 line system (System A) used positive modulation and suffered
considerably from even modest amounts of interference as it was interpreted as synchronizing
information. The French (older) system C and the current system L transmissions continue to
be so plagued. Positive modulation was chosen for no reason other than the render French TV
sets incapable of receiving 'unsuitable' broadcasts from neighboring countries

Another advantage of negative modulation is that since the synchronizing pulses

represent maximum carrier power, it is relatively easy to arrange the receiver Automatic to
only operate during sync pulses and thus get a constant amplitude video signal to drive the
rest of the TV set. This was not possible for many years with positive modulation as the peak
carrier power varied depending on picture content. Modern digital processing circuits have
achieved a similar effect but using the front porch of the video signal.

Modulation
Given all of these parameters, the result is a mostly-continuous analogue signal which
can be modulated onto a radio-frequency carrier and transmitted through an antenna. All
analogue television systems use vestigial sideband modulation, a form of amplitude
modulation in which one sideband is partially removed. This reduces the bandwidth of the
transmitted signal, enabling narrower channels to be used.

Audio
In analogue television, the sound portion of a broadcast is invariably modulated
separately from the video. Most commonly, the audio and video are combined at the
transmitter before being presented to the antenna, but in some cases separate aural and visual
antennas can be used. In almost all cases, standard wideband frequency is used for the
standard monaural audio; the exception is systems used by France, which are AM. Stereo, or
more generally multi-channel, audio is encoded using a number of schemes which (except in
the French systems) are independent of the video system. The principal systems are NICAM,
which uses a digital audio encoding; double-FM (known under a variety of names,
notably Zweikanalton, A2 Stereo, West German Stereo, German Stereo or IGR Stereo), in
which case each audio channel is separately modulated in FM and added to the broadcast
signal; and BTSC (also known as MTS), which multiplexes additional audio channels on the
video carrier. All three systems are compatible with monaural FM audio, but
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only NICAM may be used with the French AM audio systems. its uses FM instead of AM so
as to reduce noise and mixing with other sounds

Evolution
For historical reasons, some countries use a different video system on UHF than they
do on the VHF bands. In a few countries, most notably the United Kingdom, television
broadcasting on VHF has been entirely shut down. Note that the British System A, unlike all
the other systems, suppressed the upper sideband rather than the lower—befitting its status as
the oldest operating television system to survive into the color era (although was never
officially broadcast with color encoding). System A was tested with all three color systems,
and production equipment was designed and ready to be built; System A might have
survived, as NTSC-A, had the British government not decided to harmonize with the rest of
Europe on a 625-line video standard, implemented in Britain as PAL-I on UHF only.

The French System E was a post-war effort to advance France's standing in television
technology. Its 819 scan lines were almost high definition even by today's standards. Like the
British system A, it was VHF only and remained black & white until its shutdown in 1984 in
France and 1985 in Monaco. It was tested with SECAM in the early stages, but later the
decision was made to adopt color in 625 lines. Thus France adopted system L on UHF only
and abandoned system E.

In some urban areas of Germany, notably in and around Berlin and some other major
cities, all analogue TV broadcasting has been shut down in 2003–2005 in favor of
reallocating the frequencies to digital broadcasting in the DVB-T standard.
See http://www.ueberallfernsehen.de/ for a map of coverage areas and near-future
switchovers. Analogue signals are still on air in the non-colored areas of the map. The rest of
the country is scheduled to follow suit by 2010. Many other countries are planning a
shutdown of analogue broadcasting, and as of 2007 a few smaller countries have already
done so. (See Digital television transition-article for further details.)

Current scenario
Broadcasting Scenario in India
On the television industry side, this annual growth rate is projected to be 22% and on the
radio side it is projected to be at the rate of 28% over the next five years.
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At present, there are 110 million TV households in India, out of which 70 million are cable
and satellite homes and rest 40 million are served by the public broadcaster, i.e. Doordarshan.
Similarly, there are 132 million radio sets in the country.

The number of private satellite TV channels has grown astronomically over the years,
from 1 TV channel in 2000 to 273 TV channels in 2007 (till 31.12.2007).

The number of non-news & current affairs TV channels has grown from 0 to 115 and that of
news & current affairs TV channels has grown from 1 to 158.

DTH Service
Direct-To-Home (DTH) Service refers to distribution of multi-channel TV
programmers in Ku Band by using a satellite system for providing TV signals direct to
subscribers' premises.

DTH provides subscribers the advantage of geographical mobility meaning thereby that once
a customer purchases DTH hardware, he/she can continue to use the same unit anywhere in
India. DD DIRECT+ is India's first and only Free To Air (FTA) Direct-To-Home Service
being provided by Prasar Bharati. Apart from Prasar Bharati - a public service broadcaster,
M/s Dish TV India Ltd. M/s Tata Sky Ltd, and M/s Sun Direct TV Pvt. Ltd. M/s Reliance Big
TV Pvt. Ltd., M/s Bharti Tele media Ltd. and M/s. Bharat Business Channel Ltd. have also
been granted license for operating DTH service.

The eligibility conditions provide for total foreign equity holding, including FDI/
NRI/ OCB/ FII, in the applicant company not to exceed 49%, and within the foreign equity,
the FDI component not to exceed 20%. It also provides that applicant company must have
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Indian management control with the majority representatives on the Board as well as Chief
Executive of the Company being resident Indians.

Media and Entertainment industry is one of the most flourishing sectors in India. The
Indian Media and Entertainment industry grew from Rs 35,300 corers to Rs 43,700 corers
during the year 2005-06. The liberalization of the media sector has opened up the gates of
opportunities and growth. India is witnessing a revolution in this sector with the emergence
of new technologies. Many companies are taking initiatives to set up digital theatres, multi-
plexus, etc. India is emerging as a global destination for the Media And Entertainment
players because of the following reasons:

The number of channels is increasing each day.

• India is emerging as one of the world's largest markets for digital and mobile music.

• Entry of private sector companies and increasing FDI and FII.

• The concept of crossover movies and crossover audience is also gaining momentum.

• The Indian Media and Entertainment industry is also making its presence felt in the
global market with its movies and music.

• India's large pool of creative skills and growing domestic market for animation and
special effects industry.

• Piracy and violation of intellectual property rights have posed a major threat to the
Media And Entertainment companies worldwide. Lack of quality content has also
become a major area of concern for the Media And Entertainment companies in India.

• Given the high rate of economic growth and technological developments, Indian
Media And Entertainment industry is poised to register a tremendous growth in the
coming years.

• PricewaterhouseCoopers in its “Indian entertainment and media outlook 2009" report

has estimated that the Indian Entertainment & Media industry will return to double
digit growth in 2010 .

India’s E&M industry witnessed remarkable growth in recent years having consistently
outpaced growth in domestic GDP. While annual average growth in nominal GDP was
14.48% over the period 2004-08, overall E&M growth in 2008 slowed, reflecting weaker
overall economic conditions. This is expected to continue in 2009.
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Timmy Kandhari, leader India Entertainment and Media practice,

PricewaterhouseCoopers said, “The slowdown in growth requires the E&M industry to revisit
their short term business plans and strategies. However, double digit growth is expected to
return over the forecast period with India recording one of the highest growth in the E&M
industry as well as in advertising spending in the world, along with China.”

After registering a growth of around 16.6% compounded annually over the period 2004-
08, growth in the E&M industry is set to decelerate to 8.0% in 2009. This has largely been
influenced by a marked slowdown in advertising spending, which is expected to touch 9.2%
in 2009 after having posting a CAGR of close to 17.3% during 2004-08.

Growth rates will increase in 2010 to 10.4% as economic conditions are expected to
gradually improve. For the remaining years of the forecast period, the industry will continue
to grow at increasing rates, resulting in the overall compound annual growth rate for the
period 2009-13 of 10.5%.

Television industry is projected to continue to be the major contributor to the overall

industry revenue pie and is estimated to grow at a stable rate of 11.4% cumulatively over the
next five years, from an estimated Rs. 244.7 billion in 2008. The overall television industry is
projected to reach Rs. 420.0 billion by 2013. In the Television pie, television distribution is
projected to garner a share of 60% in 2013. On the other hand, television advertising industry
is projected to command a share of 41.0% in 2013, having increased from a present share of
39.0% in the total ad industry pie. The relative share of the television content industry is
expected to remain constant at 4%.

Film industry is projected to grow at a CAGR of 11.6% over the next five years, reaching
to Rs. 185 billion in 2013 from the present Rs. 107 billion in 2008. The relative shares of the
film industry are expected to shift marginally from the traditional revenues to the new
emerging revenues.

Print media industry is projected to grow by 5.6% over the period 2009-13, reaching to
Rs.213 billion in 2013 from the present Rs. 162 billion in 2008. The relative shares of
newspaper publishing and magazine publishing are not expected to change significantly and
are expected to remain the same at around 87% in favour of newspaper publishing. Magazine
publishing is expected to grow at a higher rate of 6.5% as compared with newspaper
publishing which is expected to grow at 5.6% for the next 5 years.

Radio advertising industry is projected to grow at a CAGR of 18% over 2009-13,

reaching Rs. 19 billion in 2013 from the present Rs. 8.3 billion in 2008; more than double its
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present size.In terms of share of ad pie, it is projected that the radio advertising industry will
be able to increase its share from 3.8% to 5.2% in the next five years.

Emerging segments ,the key growth driver for the music industry over the next five years
will be digital music, and its share is expected to move from 16% in 2008 to 60% in 2013.
Within digital music, mobile music will continue to increase its share and maintain its
dominance.

Given the trends of increased internet usage, internet advertising is projected to grow by
32% over the next five years and reach an estimated Rs. 20 billion in 2013 from the present
Rs. 5 billion in 2008. The share of the online advertising too is projected to grow from 2.3%
in 2008 to 5.5% in 2013 of the overall advertising pie.

The estimated size of Out of home (OOH) advertising spend is Rs 15 billion in 2008,
which is projected to become almost twice its current size in 2013 (i.e., Rs 25 billion). Its
share in the total ad pie is expected to go down marginally to 6.8% in 2013 from a current
level of 6.9% in 2008.

Animation, gaming and VFX industry will continue to maintain its growth pace and is
projected to grow at a CAGR of 22% to Rs. 42.5 billion in 2013 from its current size of Rs.
15.6 billion. In the animation space, domestic demand will create the fillip in its growth, as
well as contribution from international co-productions, in the film and television space.

Owing to the economic slowdown, the growth in advertising spending has slowed after a
period of robust growth. In 2008, overall advertising spending recorded a growth of 11.3%,
over the previous year which is much lower than the growth rate of 20.7% in the earlier year.
Overall spending expected to increase from the present size of Rs. 216 billion in 2008, to Rs.
366 billion in 2013 (a cumulative growth of 11.1% on an overall basis).

Timmy Kandahar added, “Against the backdrop of volatility in advertising spending, we

are also experiencing increased fragmentation of media and its audiences. This will result in
a structural change in the advertising world with advertising becoming more targeted,
interactive and accountable.”

While on-line is currently the smallest component of total advertising spend, it will
experience the highest growth over the next five years, growing at a compound rate of 32%.
As a consequence its share of total advertising spends will increase to 5.5% in 2013 from
2.3% in 2008. The next highest growth over the period 2009-13 is expected by the radio
industry at 18% – estimated to reach Rs.19 billion in 2013, from Rs. 8.3 billion in 2008. The
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share of the print advertising spend is expected to decline from 47.9% to 41.5%. Television,
the other large contributor in the segment is expected to grow marginally from 39% to 41%.

Marcel Fenez, Global Entertainment and Media Leader PricewaterhouseCoopers,

concluded, “Though operating in challenging and fast-moving times, there has never been
such an exciting time for the industry The onset of increased digitization will expose the
industry to new business models and dynamics. In order for each of the industry’s diverse
segments to participate fully in this growth, they will first need to embrace the digital future.
This is as true in India as in the other important entertainment and media markets globally.”

This 2009 edition of the PricewaterhouseCoopers report “Indian entertainment and media
outlook 2009’ has in-depth forecasts and analysis of eight industry segments. These are –
television, filmed entertainment, print media comprising newspaper and magazine publishing,
radio, emerging segments like music, animation, gaming, internet advertising, out-of-home
advertising and sports.

The report has been prepared on the basis of information obtained from key industry
players, trade associations, government agencies, trade publications, and other industry
sources. The performance trends in different segments of the industry were analyzed and an
attempt was made to identify the underlying factors. Models were developed to quantify the
impact of each of these factors, to create a forecast scenario. PwC’s professional expertise,
institutional knowledge and global resources of knowledge and excellence were applied to
review and adjust those values wherever required. The entire process was then examined for
internal consistency and transparency vis-à-vis prevailing industry wisdom. Feedback from
key industry players was subjected to a rigorous validation process to ensure that it was
consistent and conformed to the industry feel.

A look at the way the industry functions shows that broadcasters are largely self-censored
and generally follow a certain content code that has been set by the broadcaster itself or its
international parent Network. For e.g. Star India follows the Star TV Hong Kong code and
currently certain other broadcasters follow the programming codes of the country they uplink
from - mainly Hong Kong and Singapore. Singapore has a Censorship Review Committee,
while Hong Kong has a Family Viewing Policy which clearly specifies the hours meant for
family viewing.

This includes all original fiction shows which are commissioned by broadcasters and
assigned to various production houses. Generally, all production houses follow the
programming codes and norms set by the respective broadcasters. In India, there is a Cable
Television Network Regulation Act, wherein certain codes have been prescribed for
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programmers and advertisements appearing on any Cable & Satellite TV Network. The
offences under Cable Television Network Regulation Act being non-cognizable, a specific
complaint has to be made by an officer authorized by the state governments. For instance, the
government of Tamil Nadu has authorized collectors and sub-collectors for this purpose.
There is a Doordarshan code which is mandatory for all Doordarshan Kendras. The same is
also supposed to be followed by all C&S TV channels. However, both the codes, the Cable
Television Network Regulation Act and the DD Code are not stringently followed by all
broadcasters. For regulatory purposes, the content on television can be broadly divided into
five different categories: Commissioned Original Programming - Fiction; Commissioned
Original Programming - Non Fiction; Independent Content - Films / Trailers / Music Videos;
News Programming and Advertising.

The moral brigade has at times raised concerns about the growing amount of adultery,
growing alcoholism, increased violence, religious misrepresentation. This includes all Non
Fiction programming such as Format Shows, Talk Shows, Music Based Shows, Reality
Shows, Talent Hunts, Fashion and Lifestyle shows etc. Fashion and lifestyle channels such as
Trendz and FTV have always invoked strong protests from social awareness groups and
political parties. Former I&B minister Sushma Swaraj had passed strictures against FTV.
This was later solved and a solution arrived wherein FTV agreed to show objectionable
content such as lingerie shows, swimwear and the like only after 11:30 pm.
A lot of international shows airing on channels like AXN such as Hot N Wild, and STAR
World such as Temptation Island have been found objectionable as well.

Currently, all TV Channels are required to air only those movies that have a valid
Censor certificate. However, a lot of movie channels and regional language channels air late
night B grade movies and movies with a lot of 'sex'. The channels which air such movies
include South Indian channels such as Sun TV, Gemini and English movie channels such as
Zee MGM. However, there is no censorship applicable on Music Videos - which today have
the most objectionable and vulgar content. A lot of objections have been raised against the
influx of raunchy music videos, specially the remixes such as Chadti Jawaani, Kaanta Laga
etc.

However, these videos are aired regularly throughout the day on all music channels
including Southern Spice, MTV, ETC, Zee Music, ITV, Channel [V]. Though, recently, some
music channels have started a system of internal checks. Notably, Channel [V] has set up an
internal audit system called S & P (Standards & Practices) which checks all the music videos
before they air on the channel. English Movie channels such as HBO, Star Movies follow
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international codes and clearly specify the Age Group for whom the movie is suitable to
view.

News Programming is a highly sensitive TV programming area as news content has the
power to affect vital sensitive issues such as national security, communal harmony etc times,
there have been cases of News Channels spreading rumours, or overplaying instances of
violence or communal disharmony and misreporting on certain issues.

The TV News business requires a responsible content and programming code which
should be followed by all News Channels compulsorily. There is a referral body for all
advertising produced in India, The advertising Standards Council of India (ASCI) which is an
independent body under the aegis of the (AAAI) Advertising Agencies Association of India.
DD has a strict DD Advertising Code which clearly specifies the kind of Advertising which
can be accepted across the DD network.

However, this body is basically, an addressable body only, wherein consumers can
write in their grievances regarding any particular advertisement campaign. By law, all kinds
of Tobacco and Liquor products are banned from any kind of Advertising on Television.
However, these products heavily use surrogate forms of advertising and are still visible across
TV. The Brands promote their affiliate products which still carry the mother Brand Name.
For eg: Manikchand Oxyrich Mineral Water, Bacardi Blast CD's, Seagram’s Mega Movies,
McDowell’s No 1, and WILLS Sport.

There needs to be a clear mandate and norms set for surrogate advertising of tobacco
and liquor products. The smaller niche channels, like music, news channels specially carry a
heavy amount of liquor and tobacco advertising. What the industry needs is an independent
body which could be set up under or by the Indian Broadcasting Foundation (IBF).The body
can be called the Television Standards Council of India and it will be run by a board
comprising of eminent responsible professionals from the Television and Media business.
The board could be reelected every two - three years.
The TSCI should set up a uniform content and programming code which would cover the
entire gamut of Television content - Fiction, Non Fiction, News, Advertisement, Carriage of
Music Videos and some other outside content. The guidelines and rules set up by the TSCI
would have to be followed by all broadcasters compulsorily.
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Features

Intensifying of competition on the broadcasting front has resulted in new, emerging

opportunities for everybody—the broadcaster, equipment manufacturers, production houses
and above all, the subscriber. This has also resulted in bad blood between broadcasters and
cable operators, which is an ominous sign. The battle is on for the ground. The ongoing tussle
between Star and Siti Cable is an expression of that. Siti is said to be blocking Star’s channels
on their network. Hath way, in which Star has a stake, does not want to air TV Today’s
AajTak channel as Star News competes with it. Cable operators are also peeved at arbitrary
pay channel costs. It is these irritants which need to be overcome. One only hope that the
independent regulator, which the new Communication Convergence Bill envisages, will take
care of this issue.
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Indian broadcasting is in for a major transformation in light of the global phenomenon

of convergence of telecommunication, computing and audio/video broadcasting. This
convergence has been possible due to technological developments in the field of digital signal
processing, compression techniques, switching, etc. We are passing through a phase of
transition from the predominant analog to digital transmission both in audio and video space.
The way information, communication and entertainment services will be delivered through
the audio-visual media, in India, in the coming years, is going to make a departure from the
present, which is predominantly one way, to the point of interactivity.
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Demand drivers
Key Drivers

• Economic growth of the country in general and rising disposable income levels in
particular.

• Gradually liberalizing attitude of the government.

• Greater interface with international companies.

• Privatization and growth of the radio industry.

• Advancement in Technology.

• Favorable regulatory initiatives.

• Liberalized foreign investment regime.

The Indian Entertainment and Media (IEM) sector (as the sector is generally referred
to) is one of the fastest growing sectors in the economy. According to a PriceWaterhouse
Cooper Report, India will be one of the key drivers in driving the global entertainment
and media industry to US$ 2trillion by 2011.The industry is expected to grow at a CAGR
of 18.5% till 2011 to touch Rs. 1 trillion from Rs. 436 million in 2006.
Growing demand, along with advances in technology, policy initiatives of the Indian
government to encourage the inflow of investment and initiative by private media companies
have been the key drivers of the industry.
As per current estimates the television industry is projected to grow by 22% from Rs.
191 billion to Rs. 519 billion by 2011; filmed entertainment by 16% from Rs 85 billion to Rs
175 billion; print media by 13 from Rs 128 billion to Rs 232 billion; the Indian advertising
industry is set to grow 61 per cent by 2010 with advertising spend climbing to Rs 36,731
crore from Rs 22,721 crore this year.International media giants are all vying for a stake in the
segment. In the last three years, US$ 88 million of foreign direct investment (FDI) has
flowed into the sector and in 2006, 13 FDI proposals were approved by the
Government. Growing demand, along with advances in technology, policy initiatives of the
Indian government to encourage the inflow of investment and initiative by private media
companies have been the key drivers of the industry.Separately, the Media industry is no
doubt exciting and fun, but it is extremely fast-paced and stressful as well. Additionally,
being creative on a tight schedule can be emotionally draining, especially because most of the
work includes long hours and meeting stringent deadlines.
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Key success factors

The Key Statistics chapter provides the key indicators for the industry for at least the
last three years. The statistics included are industry revenue, industry gross product,
employment, establishments, exports, imports, domestic demand and total wages.

The Market Characteristics chapter covers the following: Market Size, Linkages,
Demand Determinants, Domestic and International Markets, Basis of Competition and Life
Cycle. The Market Size section gives the size of the domestic market as well as the size of
the export market. The Linkages section lists the industry's major supplier and major
customer industries. The Demand Determinants section lists the key factors which are likely
to cause demand to rise or fall. The Domestic and International Markets section defines the
market for the products and services of the industry. This section provides the size of the
domestic market and the proportion accounted for by imports and exports and trends in the
levels of imports and exports. The Basis of Competition section outlines the key types of
competition between firms within the industry as well as highlighting competition from
substitute products in alternative industries. The Life Cycle section provides an analysis of
which stage of development the industry is at.

The Segmentation chapter covers the following: Products and Service Segmentation,
Major Market Segments, Industry Concentration and Geographic Spread. The Products and
Service Segmentation section details the key products and/or services provided by this
industry, highlighting the most important where possible to demonstrate which have a more
significant influence over industry results as a whole. The Major Market Segments section
details the key client industries and/or groups as well as giving an indication as to which of
these are the most important to the industry. The Industry Concentration section provides an
indicator of how much industry revenue is accounted for by the top four players. The
Geographic Spread section provides a guide to the regional share of industry revenue/gross
product.

The Industry Conditions chapter covers the following: Barriers to Entry, Taxation,
Industry Assistance, Regulation and Deregulation, Cost Structure, Capital and Labor
Intensity, Technology and Systems, Industry Volatility and Globalization. The Barriers to
Entry section outlines factors that can prevent a new company from entering this industry and
also gives an indication of the extent to which this occurs. The Taxation section details all
kinds of taxation that are specific or are particularly important to this industry, including
taxation concessions. The Industry Assistance section refers to any government and/or other
 Media Broadcasting

measures designed to improve the performance of this industry. The Regulation and
Deregulation section details any applicable regulation and/or deregulation to this industry.
The Cost Structure section details the average costs for a company operating in this industry
as a percentage of total revenue. The Capital and Labor Intensity section provides a guide to
the amount of capital used in production/providing a service compared to the amount of labor
in the total mix of inputs. The Technology and Systems section acknowledges the latest
technology and/or systems available to this industry within the country. Technology refers to
machinery and equipment and systems refers to methods of production that enable better and
more efficient production. The Industry Volatility section refers to the year on year
fluctuations which occur in industry output. The Globalization section gives an indication of
the extent to which the industry is global based on factors such as the level of foreign
ownership, the proportion of demand accounted for by foreign operators and the volume of
production conducted in other countries.

The Performance chapter provides an analysis of both the industry's Current

Performance and Historical Performance. The Current Performance section provides the key
analysis for the industry over the past five years with key performance indicators discussed.
The Historical Performance section details previously important events in the development of
the industry.

The Key Competitors chapter lists the major players in the industry as well as an
analysis of each major player's activities in the industry. Market share information is included
where possible.

The Key Factors chapter covers the industry's Key Sensitivities and Key Success
Factors. The Key Sensitivities section outlines the key factors that are outside the control of
an operator in the industry, but are likely to have significant impact on a business. The Key
Success Factors section details the factors within the control of an industry operator and
which should be followed in order to be successful in the industry. Often this will include
behavior that will help to minimize the effects of the Key Sensitivities.

The Outlook chapter is a key analysis section of the report and outlines expectations
for the key industry indicators over the next five year period, including forecasts

Environmental issues

The industry continues to experience strong competition from the digital cable and
satellite TV industries. The cable TV industry, in particular, represents a significant threat
 Media Broadcasting

to future industry growth. A number of factors point to low growth in advertising revenue,
including forecast low economic growth, the declining overall share of the TV audience,
and competition from new media. The bleak outlook for this industry has already prompted
News Corp to expand its satellite TV interests. The onset of digital television may provide a
much needed boost for demand.

In-depth industry market research presented in a logical and consistent format.

Including 40 pages of insights covering industry conditions, key statistics, competitor
analysis and market share, product and customer segmentation and a 5 year forecast

Domestic players
ETV Network

It is one of the largest networks of satellite television channels in India and is owned
by the media baron Ramoji Rao. Based at Hyderabad, this network runs a group of
12 regional language news and entertainment channels.
 Media Broadcasting

When the satellite TV revolution broke out in India during the late 1990s, the Telugu daily
newspaper Eenadu started with its own channel called TV. Initially launching a Telugu
channel the network has later diversified into other Indian languages such
as Bengali, Urdu, Kannada, Gujarati,Oriya and Marathi. With 12 channels in regional
languages of India, ETV has the largest news-reporting network in India, at the grass root
level. Managed by News today Private Limited, the channels give news in between
entertainment programs. 4 Hindi channels for Madhya Pradesh, Uttar
Pradesh, Bihar and Rajasthan, and regional entertainment channels in Telugu, Kannada,
Bangla, Oriya, Marathi, Urdu, Gujarati - and a 24-hours news channel in Telugu constitute
the bunch of ETV Channels.

Sun TV Network

It is the No 1 media company in South Asia and Asia Pacific Region ) and the largest
TV network of South India, based in Chennai, Tamil Nadu. Established in 1993, it offers a
plethora of television channels in 4 languages covering the whole of southern India. It was
the first fully privately owned Tamil channel in India when it emerged in 1993. Its serials and
soaps have generated the maximum TRP for viewership all over India, making it the most
popular network of channels in India.

All its channels occupy the top spots in their respective languages. Sun TV,
in Tamil is the Network's flagship and most popular channel. Being the premier channel, Sun
TV is often used to refer cable TV in general or to the Sun TV Network in general.

Kalanithi Maran is the Chairman and Managing Director of media giant Sun Network
and has been given awards including the CNBC "Business Excellence Award" in 2005. Sun
Network also offers FM Radio Stations (93.5 FM) It has 45 FM Radio Stations and has
recently forayed into the print business. In addition, it has also recently launched a DTH
satellite television service entitled Sun direct DTH.

Sun TV and its sister channels have a dominating share of viewership in Tamil Nadu. Its
cable arm, SCV is cable distribution and Sun Direct is the dominating DTH (direct-to-home)
player in the state. Its radio network Suryan has a lion’s share of listenership; its magazine
Kungumum and newspaper Dinakaran are leaders. www.sun.in is the default page on
computer screens across the state since it owns the leading ISP. More than 80 per cent of the
state’s population decides on how to vote, where to shop, what to buy based on the news,
information and entertainment coming from the Sun Group." - Business-Standard.

Zee Entertainment Enterprises Ltd.

 Media Broadcasting

It is the largest media and entertainment company in India and is a subsidiary of Easel
Group. The company's Chairman, Managing Director and Founder is Subhash Chandra and
its Chief Executive Officer is Puneet Goenka. It was previously known as Zee Telefims until
2006 when it was renamed and the news and entertainment units were spun off into four
smaller divisions. Zee currently operates over 15 different television channels, a cable
company Siti Cable, a record label Zee Records, a production company and other businesses
as well. It launched in October 1992 and has since grown into a dominant player in Indian
television. It has expanded operations abroad, with several of its channels available in the UK
and U.S. as well as Africa and Asia.

In 2002 Zee Entertainment Enterprises acquired a majority stake (51%) in ETC

Networks. In 2006, they acquired Integrated Subscriber Management Services Limited and in
November 2006, Zee acquired an interest (50%) in Asian sports network Sports. As Zee
Telefilms, the company formed part of BSE Sensex from 2000-2005. The news and regional
entertainment channel business was spun off into a separate company in 2006 under the
corporate banner Zee News Ltd.

Maa TV

It is a Telugu language TV Channel based in Hyderabad, India. It is one of the

leading Telugu language TV channels in Andhra Pradesh, India. In a very short time span, it
has established amongst the Telugu viewer across strata and gender, the globe over, as a
channel that is different - in terms of its attitude, freshness and novelty.

It launched Maa Music on 30 May 2008 which is equally trendy and reflects the roots
of MAA network which shows something different to the Telugu audiences. The managing
directors are Murali Krishna Raju,Akkineni Nagarjuna, N. Prasad, Allu Aravind, Ch Ramesh
& C Ramakrishna.[1]

AXN India

This site is owned and operated by AXN Asia Pte Ltd, a Sony Pictures Entertainment
(?SPE?) Company. This Privacy Statement is applicable to all AXN and SPE Web sites and
other sites on the Internet and World Wide Web owned and operated by SPE (the "SPE
Sites"), and all services provided thereon, including all SPE Forums (collectively, unless
noted otherwise, the "Services"). SPE respects the privacy concerns of all users of the
Services. SPE also recognizes the valuable potential of technology to help people
communicate with the companies whose Web sites they visit, particularly through customer
 Media Broadcasting

databases. Responsible use of the information you share with SPE is paramount. In order to
help you understand how the information you provide SPE will be used, the following
guidelines have been created.web site: http://www.axn-india.com/

B4UTelevisionNerwork(India)PvtLtd
B4U one of the world's leading Bolly wood television network was incorporated in
1999 and launched B4U Music and B4U Movies simultaneously in UK. The channel received
an overwhelming response and went on to expand its operations in the US & UAE before
launching in India in May 2000. Within a short span of 2 years B4U managed to spread its
broadcasting wings globally and at present is available on more than 8 different satellites, in
more than 100 countries including the US, UK, Europe, Middle East, Africa, Mauritius
Canada and India. The B4U channels boasts of fantastic programming and mind boggling
packaging and presentation with a single focus of entertaining - the Bollywood way - catering
to all ages and a cross section of filmi, music and entertainment lovers. B4U Music provides
some of the best Bollywood, Indipop and International music with a greater leaning towards
the Indian fare. Our digital formatting ensures crystal clear true to real viewing experience.
However our content also provides entertainment through a host of vignettes, which has a
strong dose of humour and Bollywood fare. All of this and more, has managed to carve a
unique and distinct niche of the channel in the minds of our viewers. With rapid strides, the
channel happens to be one of the leading music channels among the C&S households
globally. Some achievement for a young channel! After having successfully launched B4U
Movies globally, we launched B4U Movies in India on October 02, 2001, bringing
Bollywood to your homes. B4U Movies is a window through which hardcore movie buffs
can satisfy their complete bollywood experience. We guarantee a 360-degree view of
bollywood through our various bollywood-based programming. We strongly believe that no
one brings you Bollywood more comprehensively & passionately as we do.
web site url : http://www.b4utv.com
BBCWorldIndia
BBC World is the BBC's commercially funded international 24-hour news and
information channel broadcasting around the world from its base at BBC Television Centre in
London. BBC World is an integral part of the BBC's commitment to global broadcasting and,
along with BBC World Service Radio, provides a focal point for viewers and listeners around
the world. Viewers who wish to keep ahead of global news events, but not just the headlines -
turn to BBC World for the story behind the headlines - the why's and how's of the event as
well. BBC World keeps its viewers not just informed, but well informed, with in-depth
 Media Broadcasting

analysis and cutting edge interviews - the story from all sides.
web site url : http://www.bbcworld.com
CartoonNetworkIndia
This site may contain links to other web sites ("Linked Sites"). The Linked Sites are
for your convenience only and you access them at your own risk. CN is not responsible for
the content of the Linked Sites, whether or not CN is affiliated with sponsors of the sites. CN
does not in any way endorse the Linked Sites. CN welcomes links to this site. You may
establish a hypertext link to this site, provided that the link does not state or imply any
sponsorship or endorsement of your site by CN. You must not use on your site or in any other
manner any trademarks, service marks or any other materials appearing on the CN site,
including any logos or characters, without the express written consent of the owner of the
mark or materials. You must not frame or otherwise incorporate into another web site or
present in conjunction with or juxtaposed against such a web site any of the content or other
materials on the CN site without CN's prior written consent.
Web site: http://www.cartoonnetworkindia.com

CNBCAsia.
CNBC Asia goes beyond delivering regional news. Efforts have been made to
remain relevant to the local audience concerns and issues of the day. In India in particular,
CNBC Asia's local partnership with Television Eighteen India Ltd (TV18) has produced a
top-notch business channel dedicated to the delivery of relevant news to CNBC Asia's
viewers in India. Web site: http://www.cnbcasia.com/india_specific/india_specific.asp

CNBCAwaaz
The Indian consumers today rule the economy, driving exponential growth across
sectors. The consumer revolution is underway and so is Awaaz, India's first consumer-
focusedHindi channel. Awaaz is brought to you by Television Eighteen and the people who
gave you India's leading business network, CNBC-TV18. Awaaz is not only the voice of the
Indian consumer, but also the single, authoritative source for making intelligent, informed
decisions about investing, saving, spending and making career choices. Awaaz hosts an
impressive array of shows spanning personal finance, markets, small businesses, consumer
issues, health, education, shopping and more, led by the most impressive team in business
journalism as well as media moguls. Awaaz has the potential to cut across socio-economic
categories all over India. Its no wonder that Awaaz is already the fastest growing consumer
channel in the country. Web site: http://awaaz.moneycontrol.com/
 Media Broadcasting

Doordarshan-IndianNationalTelevisionNetwork.
Doordarshan is one of the largest broadcasting organizations in the world.
Doordarshan operates 20 channels, has a network of 1081 transmitters, puts out over 1,393
hours of programmers every week. Doordarshan reaches 87.6 percent of the country's 950
million people.web site: http://www.ddindia.gov.in/

ESPNIndia
ESPN STAR Sports is a 50:50 joint venture between two of the world's leading
cable and satellite broadcasters, ESPN Inc. and STAR. Combining the strengths and
resources of its ultimate parent companies, Walt Disney (ESPN, Inc.) and News Corporation
Limited (STAR), ESS is Asia's definitive and complete sports provider. ESS has thirteen
networks spanning the region - ESPN Asia, ESPN India, ESPN Taiwan, ESPN Singapore,
ESPN Philippines, MBC-ESPN (Korea), ESPN Hong Kong, STAR Sports Hong Kong, Xing
Kong Sports, STAR Sports India, STAR Sports Taiwan, STAR Sports S.E.A and STAR
Sports Singapore. All eleven feeds are customised to deliver the world's premier sports events
which are in line with local audience preferences. ESPN reaches over 110 million households
while STAR Sports reaches over 54 million households. From basketball to badminton,
soccer to swimming, ESPN STAR Sports brings its viewing audience of predominantly
affluent, educated viewers between the ages of 15 and 54, the round-the-clock and round-the-
globe sports entertainment they crave.web site url : http://www.espnstar.com/

HBOIndia
Launched in 1992, HBO is a 24-hour commercial-free subscription movie channel
offering viewers in Asia a choice of more than 120 programs every month. HBO also offers
quality original movies and series that are produced by HBO, exclusively for viewers of the
HBO channel. HBO is recognized as the best in the business at producing original programs
for television, winning many Emmy and Golden Globe Awards year after year.
Web site: http://www.hbosouthasia.com
NDTV
New Delhi Television Limited (NDTV), founded in 1988, is India's first and largest
private producer of news, current affairs and entertainment television NDTV is home to the
country's best and brightest reporters, anchors and producers; 23 offices and studios across
the country host India's most modern and sophisticated production and news gathering
facilities. Web site: http://www.ndtv.com/
 Media Broadcasting

SonyEntertainmentTelevision.
Sony Entertainment Television is dedicated to provide the best in Hindi family
entertainment to the largest percentage of the Indian population-the young adult.
Web site: http://www.setindia.com/

Government policies

Protection & Regulation of Broadcasters

Up linking & Down linking Guidelines;

• Content regulated by MIB. Programming and advertisement codes laid down. All
service providers are bound by the codes.

• Copyright Act, 1957;

• Cable Television Networks (Regulation) Act, 1995 (CTN Act, 1995)

• The Sports Broadcasting Signal (Mandatory Sharing With Prasar Bharti) Act 2007

• Telecom Regulatory Authority of India Act, 1997 & Regulations framed there under;
(TRAI)
 Media Broadcasting

Copyright Act 1957

• As per the amendment introduced in the year 1995, Section 37 of the Act provides
that every Broadcasting organization shall have a special right to be known as
“Broadcast Reproduction Right” in respect of its broadcast.

• Section 2(dd) – “Broadcast” means communication to the public –

• By any means of wireless diffusion, whether in any one or more of the forms of
signs, sounds or visual images; or

• By wire; and includes a re-broadcast

• Section 2(b) of the CTN Act, 1995 – “Cable Services” means the transmission by
cables of programmes including re-transmission by cable of any broadcast
television signals.

• Section 2(g) of CTN Act, 1995 – “Programme” means any television broadcast and
include exhibition of films, features, dramas, advertisement and serials through video
cassette recorders or video cassette players.

• Rule 6(3) of the CTN Rules, 1994 – No cable operator shall carry or include in his
cable service any programme in respect of which copyright subsists under the
Copyright Act, 1957 unless he has been granted a licence by owners of copyright
under that Act in respect of such programme.

• Thus the broadcast through retransmission by wire is protected by Indian Law

which still is an unresolved issue in the context of WIPO Treaty

Copyright Act, 1957

• Fixation -Not specifically defined

• Sec.37 (3) – Making sound recording or visual recording is illegal Sound Recording is
very broadly defined

• A recording of sounds from which sounds may be produced regardless of the medium
on which such recording is made or the method by which the sounds are produced.

• Ref. to defn of “Broadcast” & Sec.14 (reproduction by electronic means is the excl.
right of the owner)

Fair Use
 Media Broadcasting

• Provisions contained in Sec.52 of the Act -In addition to all the other provisions of
Fair Use viz., Fair dealing for private use including

– Research,

– Criticism,

– to make back-up copies for studying interoperability of comp. programmes,

– for reporting current events, etc.,

– Making of ephemeral recordings is not infringement

– Use for an official ceremony by the Government or in a religious ceremony.

• Sec.39A – Every broadcast has to be with the license of the owner of the work that
is being broadcast. License to reproduce the broadcast also requires license of the
owner. Statute therefore recognizes and gives supremacy to the owner of the
content.

Fiscal regulations
Most of the past one year, the media industry has been busy resisting the proposed
Broadcasting Bill, which it believes could hamper its free functioning. Nevertheless, the
growth in this industry has been phenomenal. On last count, there were as many as 313
television channels beaming into the country. In direct-to-home (DTH) broadcasting, stage
has been set for competition between multiple players, as against between only two private
operators till now.

With 122 million TV homes, out of which 71 million are cable and satellite
connections, broadcasting is a high-opportunity business in India. Plenty of platform choice
like direct-to-home, conditional access system and internet protocol television, makes TV
broadcasting even more exciting.

Although information and broadcasting (I&B) minister P R Dasmunsi was the one to
introduce mandatory-sharing ordinance for sports telecast, that came up for criticism from
private channels, he recently pointed out that the potential in the media sector is huge.
Dasmunsi said, "There is a huge potential for development of broadcasting in India and we
have a lot of advanced technologies available with us. What we need to have is proper
 Media Broadcasting

selection of technologies suiting our requirements." The minister added, "Over the past few
years, the broadcasting sector in India has witnessed all round growth."

However, the finance ministry has been rather quiet on giving tax relief and any other
sops to the media and broadcasting industry. Media companies, both TV channels and DTH
players, have once again given a list of their budget expectations, despite disappointment in
the previous few years. Stakeholders are hoping that this year would be different.

The Indian Broadcasting Foundation (IBF), that represents the television industry, has
told the finance ministry that the broadcasting sector should be included under `Industrial
Undertaking' as defined by the Section 72A of the Income Tax Act, 1961. The IBF
memorandum to the FM points out that "Section 72A of the Income Tax Act, 1961, provides
an incentive to robust companies to take over and amalgamate with the companies which
would otherwise become a burden on the economy."

The memorandum states that the basic objective of Section 72A was to revive the
financially weak businesses and synergise the business to achieve better growth, better
profits, recovery of bad advances by banks and institutions, which will result in higher tax
revenues and increase in employment. But, while Section 72A of the Income Tax Act defines
the term `Industrial Undertaking', it does not cover the broadcasting sector. When the term
`Industrial Undertaking' was introduced, broadcasting industry was in a nascent stage, and
therefore the omission, it is believed.

IBF has also demanded that the base for fringe benefit tax (FBT) should be reduced
from 20 per cent to 5 per cent for the TV broadcasting industry, as in the case of computer
software industry. Also, customs and excise duties in the entertainment sector should be on
par with the IT industry. Currently, custom duty plus countervailing duty and cess on
broadcast equipment is 36.64 per cent, against 21.32 per cent for computers and 4 per cent for
cellphones, says the IBF note.

In addition, the broadcasting industry wants the countervailing duty and cess charges
to be removed on set-top boxes that are a must for the conditional access system (CAS).
While the customs duty on set-top boxes were reduced to zero, CVD, cess and other duties
come to 21.32 per cent. IBF has suggested that the government should exempt CVD, cess
charges and additional duties on set-top boxes for the next 10 years. IBF also wants excise
exemption for 10 years. A 'national fund' for cable infrastructure has also been sought.
 Media Broadcasting

An IBF official told DNA Money, "The duties in the broadcasting sector should be on
par with the information technology (IT) sector." "Also there should be no discrimination
with the print media vis-Ã -vis service tax," he said.

The recommendations of the broadcasting industry include bringing custom and

excise duties on broadcasting equipment on par with IT equipment; reducing the custom duty
on set-top boxes to zero; exempting broadcasting industry from service tax; and expansion of
the definition of `Industrial Undertaking'. The total estimated advertising revenue across
television media in 2007 was Rs 7,400 crore.

The Cable Television Networks The Cable Television Networks Rules, 1994
Rules, 1994
The National Security Act, 1980 The National Security Act, 1980
The Cable Television Networks Almost everybody in the country is familiar with the
(Regulation) Act cable television. It has been spreading its wings from the
initial urban cities, right to the remote villages. There has
been a haphazard mushrooming of cable television
networks all over the country due to the availability of
signals of foreign television networks via satellites. To
check the screening of undesirable programmes and
advertisements which are screened on these channels and
to regulate the operation of the cable television networks
in the country, so as to bring uniformity in their
functioning, the Cable Television Networks (Regulation)
Act was passed in both the Houses of the Parliament.
The Prasar Bharati Act ,1990 The Prasar Bharati Act ,1990 was passed to provide for
the establishment of a Broadcasting Corporation for
India, to be known as Prasar Bharati. It says that it shall
be the primary duty of the Corporation to organize and
conduct public broadcasting services to inform, educate
and entertain the public and to ensure a balanced
development of broadcasting on radio and television.
The Prasar Bharati Act ,1990 The Prasar Bharati Act ,1990 was passed to provide for
 Media Broadcasting

the establishment of a Broadcasting Corporation for

India, to be known as Prasar Bharati. It says that it shall
be the primary duty of the Corporation to organize and
conduct public broadcasting services to inform, educate
and entertain the public and to ensure a balanced
development of broadcasting on radio and television.
The Broadcasting Bill , 1997 The Bill is to provide for an independent authority to be
known as the Broadcasting Authority of India which is
for the purpose of facilitating and regulating broadcasting
services in India.
International scenario

'Media' is the medium of carrying information, education and entertainment to the

masses. It is an easier and efficient means of communication which plays a key role in the
overall development of an economy. In an era where knowledge and facts are the tools for
economic, political and cultural exchange, presence of the strong and constructive media in a
country is important for catering to the diverse needs of individuals, society as a whole, small
and large business and production houses, various research organizations, private sectors as
well as the public sectors. Media is a conscience-keeper of the nation and has many tasks to
perform in our day-to-day lives. It helps the Government to achieve various socioeconomic
and political goals; educate urban and rural masses; instill a sense of responsibility among the
people; as well as provide justice to the needy. It largely consists of print media like
newspapers, magazines, journals and other publications, etc. as well as electronic media like
radio, television, internet, etc. With the changing scenario of the world, it has acquired the
status of an industry.

In India, the media and entertainment industry is undergoing remarkable change and
is one of the fastest growing sectors. The main factors responsible for this are rising per
capita/ national income; high economic growth and strong macro-economic fundamentals;
and democratic set up, good governance as well as law and order position in the country.
Specifically, spectacular growth of the television industry, new formats for film production
and distribution, privatisation and growth of radio, gradually liberalising attitude of
Government towards the sector, easier access to and for international companies as well as
advent of digital communication and its technological innovations are the other attributes of
the growth of the sector. The media industry plays an important role in creating people's
 Media Broadcasting

awareness about national policies and programmes by providing information and education,
besides creating healthy business environment in the country. Thus, it helps people to be
active partners in the nation-building endeavour.

The media industry has significantly benefited from liberal investment regime in the country.
Foreign direct investment (FDI) has been permitted in its various segments. FDI upto 100 per
cent has now been allowed for print media covering non-news publications and FDI (with
FII) upto 26 per cent has been allowed for print and electronic media covering news and
current affairs. However, the news sector has also been opened up for FIIs, NRIs and PIOs.
The FDI (including FII) in FM radio broadcasting sector has been allowed at 20 per cent.
While, FDI and FII upto 49 per cent have been permitted for cable network; direct to home
(DTH) - (within this limit, FDI component not to exceed 20 per cent); setting up hardware
facilities such as up-linking, hub (teleports); etc.

At present, there are 110 million TV households in India, out of which 70 million are cable
and satellite homes and rest 40 million are served by the public broadcaster, that is,
Doordarshan. Similarly, there are 132 million radio sets in the country. Further, over the
years, the number of private satellite TV channels has grown very fast from 1 TV channel in
2000 to 273 TV channels till 31.12.2007. The news and current affairs TV channels
constitute 58 per cent and non-news and current affairs TV channels constitute 42 per cent of
total permitted 273 TV channels. The former channels have grown from 1 in 2000 to 158 till
31.12.2007, while latter rose from 0 to 115.
 Media Broadcasting

Porters five force model

Threats of new entrants

Bargaining power of Competitive

suppliers rivalry within power of custom
Bargaining
The industry

Threat of
Substitutes
 Media Broadcasting

Bargaining power of Buyers

Strength of Force—High
The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods
or services. Supplier bargaining power is likely to be high when:
• Buyers (end users as well as advertisers) do not face significant switching costs and
are extremely price sensitive.
• Viewers' tastes frequently change, providing little loyalty to any particular network
• Advertising buyers dictate television programming choices
• The suppliers customers are fragmented, so their bargaining power is low,
• The switching costs from one supplier to another are high,
• His threat is especially high when the buying industry has a higher profitability than
the supplying industry,
 Media Broadcasting

Bargaining Power of th Suppliers

Strength of Force-- Low- Medium
Similarly, the bargaining power of customers determines how much customers can impose
pressure on margins and volumes. Customers bargaining power is likely to be high when
• Since most suppliers to Broadcasters have either been acquired/ have a tie-up with the
broadcasters, the bargaining power of suppliers is low. For ex- Viacom has acquired
Paramount.
• However, Independent content providers pose a major challenge to online revenue
model for broadcasters.
• The supplying industry comprises a large number of small operators
• The service is undifferentiated and can be replaces by substitutes,
• The customer knows about the production costs of the product
 Media Broadcasting

Threat of New Entrants

Strength of Force—Low
The competition in an industry will be the higher, the easier it is for other companies to enter
this industry. In such a situation, new entrants could change major determinants of the market
environment (e.g. market shares, prices, customer loyalty) at any time. There is always a
latent pressure for reaction and
adjustment for existing players in this industry. The threat of new entries will depend on the
extent to which there are barriers to entry. These are typically
• High start-up capital is a big de motivator
• New entrants have difficulty accessing distribution channels.
• New entrant has some problems finding skilled employees, materials, and suppliers.
• Serviceable used equipment is expensive.
• Long-lasting economies of learning and scale also demotivate the potential new
entrant
• Economies of scale (minimum size requirements for profitable operations),
• Brand loyalty of customers
• Scarcity of important resources, e.g. qualified expert staff
• Access to raw materials is controlled by existing players,
• Distribution channels are controlled by existing players,

Threat of Substitutes
 Media Broadcasting

Strength of Force—Medium
A threat from substitutes exists if there are alternative products with lower prices of better
performance parameters for the same purpose. They could potentially attract a significant
proportion of market volume and hence reduce the potential sales volume for existing
players. This category also relates to complementary products. Similarly to the threat of new
entrants, the treat of substitutes is determined by factors like
• The relative price for performance of substitutes,
• Current trends.
• Customers incur no incur switching costs.
• Also, adequate substitutes are available.
• Possibly, One Broadcasting medium substitute for the other(movies as a replacement
For TV) Pirated content is a decent(and free substitute).
• Other free time activities be could be substitutes (concerts, games, gambling,
gardening, sports, restaurants)

Intensity of Rivalry among Competitors

Strength of Force— High
 Media Broadcasting

This force describes the intensity of competition between existing players (companies) in an
industry. High competitive pressure results in pressure on prices, margins, and hence, on
profitability for every
single company in the industry. Competition between existing players is likely to be high
when
• There are many players of about the same size,
• Players have similar strategies
• There is not much differentiation between players and their products, hence, there is
much price competition
• Larger firms have created a critical mass, capacity to induce users to subsidiaries
Companies and products, created size by consolidating complementing firms.
• There are significant brand identities and product differences.
• Competition is fierce; ethics are often questionable. Exit barriers are low, and also
acquisitions/mergers are common.
 Media Broadcasting

Market share

Service
sectors sectors 2006-2007
2006-2007 Service
sectorssectors 2007-2008
2007-2008
Media
Agriculture
Broad casting 18.513 Media
Agriculture
Broad casting 18 15
Financing, Insurance,
Manufacturing 21 Financing, Insurance,
Manufacturing 37
Real Estate and
Service 60.520.8 Real Estate and
Service 5523.5
Business Services & Business Services &
etc etc
Construction and IT 26.7 Construction and IT 17.3

Interpretation
Market share in Indian economy the service sector was drastically increased up to
2007 after words it decreased to 5.5% because of IT fall in India.

Broadcasting share in Indian economy

Interpretation
In service sector the portion of media broadcasting was slowly increased in this year
2008 due to the floods and elections the media broadcasting industry was increased.

SWOT Analysis
Strengths
 Media Broadcasting

• Latest technology is used by the Industry, along with that; it offers wide variety of
solutions including some very creative ones.
• There is strong expertise of broadcasters in core areas and also we see heavy
competition which is a sign of prosperity for the Industry.
• The industry is very sensitive to market trends/customers’ needs and develops
solutions according to the fast changing requirements.
• Competitive pricing helps the end customer as do customized solutions.
• Box Office revenues are expected to see consistent growth in 2007.
• Home movie downloads are becoming more accessible via the internet and those in
the industry have successfully met this.
• The industry expects to grow advertising revenues at a rate of 4.2% in 2007. Also,
there is Strong network between public and private sector.

Opportunities
 Media Broadcasting

• Downloads remain a small part of revenue growth, but there is rapid growing
potential for revenue from downloads and transmissions to mobile phones, video on
demand, video iPod, and internet downloads.
• Now some broad casting companies are providing box offices also.
• Conglomerates have the resources to seek out this changing market while balancing
its initiatives on the television broadcasting level.
• Change in technology and in consumer wants and needs brings about new
opportunities for growth and for different players to catch a larger share of the
industry.
• Those who are able to create strategic partnerships and find alternative ways of doing
business will thrive.
• Increasing no. of channels.
• Well awareness through broadcasting.

Weakness
 Media Broadcasting

• Domination of 4-5 major players is a negative sign thus creating somewhat

monopolized industry.
• The U.S. automobile industry has a major effect on the Broadcasting & Entertainment
industry as it is one of the largest advertisers. Ongoing weakness of U.S. automakers
will have an impact on advertising spending.
• Environmental issues.
• Full depending on power supply.
• Remote area can not access.

Threats
 Media Broadcasting

• Slowing Real GDP, inflation, and jobs are all concerns of the economy in 2007.
• With an unstable outlook, this industry will suffer if we experience economic decline.
• Oil prices are beginning to rise, which will cause a decrease in available Challenges
of Broadcast Industry and Opportunities for IT Solution Providers cash for consumers
to spend. Also, declines in home prices in some areas will limit consumers’ ability to
tap into the equity in their home.
• The influx of DVR’s (Digital Video Recorders) into the homes of consumers has a
negative impact on advertising revenues.
• This is seen as advertisers insist that rates be based only on live viewing and not time
shifted viewing.
• Though broadcasters understand the evolution of advertising from television to the
Internet, there is still an uncertainty as to whether or not the consumer traffic will
remain or drop off to other alternatives.
• With primetime viewing and movies turning digital, the threat of piracy and illegal
downloads is more prevalent, which will hinder the industries growth.

Conclusion
Broadcasting Industry is going through a massive technical up gradation phase. This
phase brings along many opportunities for various players across the value chain.
 Media Broadcasting

Broadcasters can look at generating revenues from newer mediums while future of existing
mediums is increasingly becoming unsure. This digital transition could be leveraged by IT
solution providers by providing solutions ranging from back end support work to key hi-
technology solutions and advanced data analytics. IT firms must identify their segment of
operation (The tier they belong to), and then decide to specialize in specific capabilities
which match with their business model. However, a word of caution is that neither revenues
are predictable nor sustainability of these solutions can be guaranteed. Also, in case IT
solution providers have to earn substantial revenue from this ever- emerging area, they must
start delivering right now, since broadcasters are keener than any time before to adopt these
solutions.