Tuesday, 27 August 2013

Three media firms make it to the billion-dollar club – Business Standard Report

Business Standard has releases its annual listing of top media firms recently. According to the report by Vanita Kohli Khnadekar in Business Standard the Times Group, Zee Group and STAR India are now part of the billion-dollar media club. All three were just about a billion dollars in revenues. The listing is based on publicly available data in an industry that is notoriously secretive. That explains why we never manage to compare profitability - the figures aren't available across all these firms, says the report
The second finding is that scale is still a huge issue. Look at the top five companies and the bottom five - the gap in revenues is huge. Except for The Times Group that makes its primary income from publishing, the companies managing to scale up are all in broadcasting or TV distribution. This is because the forces of consolidation and digitisation are helping them do that. The top five networks now control more than 65 per cent of the total TV audience in India. On the distribution side, digitisation is pushing much-needed consolidation. Eventually (by 2017), five cable firms and an equal number of DTH (direct-to-home) ones would end up controlling the 153 million Indian TV homes.
And, the third finding is that just one predominantly film company, Disney-UTV, makes it to the list. So, while the film business has really got its act together and is doing well, scale is still an issue. At a firm level and an industry level, scale is the most critical game changer in the Rs 83,000-crore Indian media and entertainment business. Fragmentation and chaos have marked its existence for 20 years now. Some scale and consolidation will bring much-needed pricing power and, therefore, profits back to the business. Currently, the newspaper industry is the most profitable part of the business. Large parts of the TV business are now seeing an uptick in margins. Radio and digital remain largely small and unprofitable. That explains why they don't show up on this list.

http://cablequest.org/news/national-news/item/3069-three-media-firms-make-it-to-the-billion-dollar-club-%E2%80%93-business-standard-report.htmlSource: http://cablequest.org/news/national-news/item/3069-three-media-firms-make-it-to-the-billion-dollar-club-%E2%80%93-business-standard-report.html

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