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The word “broadcast” actually refers to a literal sowing of seeds on farms by spreading them over a wide field. Talking about broadcasting media it is actually a service of distributing audio and video content to a discrete audience via radio, television, telephone, internet or other, often digital transmission media. The receptor of these services includes the common public or a o relatively broader audience, such as children or young adults. Broadcasting contributes to a very huge segment of the mass media, and broadcasting to a very narrow range of audience is called narrowcasting. Broadcasting can be done through different channels which contain television and radio stations and networks that creates content or obtain the privileges to broadcast recorded television and radio programs.
TV broadcasting is the most prominent form of broadcasting which is actually distributing video content to a dispersed audience. It was started experimentally from 1925, commercially from the 1930s. Television broadcasters run studios and facilities for the programming and transmission of programs to the general audience.
TELEVISION BROADCASTING IN INDIA.
Television broadcasting industry in India is a very huge industry and has thousands of programs in almost all states of India. Almost half of the households in India own a television. In a research conducted in 2010, it was found that a total of 515 channels are available in the country out if which nearly 150 are paid channels.
Indian television markets display today many of the attributes of the sector typical to broadcasting across the world, a mix of state-supported and advertising based services; a separate and growing segment offering scrambled services in return for subscription; a variety of distribution means. At the same time, Indian television has a number of unique characteristics that are the result of its size and history, source of funding, regulation and technology choices. In common with other Indian industries, the development of broadcasting has been coloured by India’s comparative isolation due to tariff barriers and other regulatory constraints. These impacted unevenly across television and related sectors, while Bollywood flourished in part because of the scarcity of non Indian content. The main competitors with in the industry include entertainment, Sony Entertainment, Star TV, Doordarshan, and NDTV.
In India, the television broadcasting industry going through remarkable changes and it has now become one of the fastest growing sectors of the country. The main reasons for all this is the rising per capita/ national income, increase in the growth of economy and powerful macro-economic fundamentals, democratic set up, good governance as well as law and order position in the country. The Indian broadcasting industry plays a vital role in creating people’s awareness about state laws and policies and programs by providing education and information, besides creating healthy business environment within the country. Thus, it helps the people to be the active partner in the nation-building venture.
At the present stage, in Indian television broadcasting industry there are almost 110 million households having TV in their houses in India, out of which almost 70 million of the households are cable and satellite homes and rest of the 40 million households are served by the public broadcaster.
Domination of 4-5 major players is a negative sign thus creating somewhat monopolized industry.
Ongoing weakness of U.S. automakers will have an impact on advertising spending.
Full depending on power supply.
Remote area can not be accessed
Latest technology is used by the Industry.
Strong expertise of broadcasters in core areas.
Industry acceptance of fast changing requirements.
Competitive pricing helps the end customer as do customized solutions.
Box Office revenues are consistently growing.
Slowing Real GDP, inflation, and jobs concerns.
Unstable outlook of the industry.
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.
This is seen as advertisers insist that rates be based only on live viewing and not time shifted viewing.
Threat of consumer shift towards alternatives.
New broad casting companies are providing box offices also.
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.
TRENDS IN INDIAN BROADCASTING INDUSTRY.
Indian Broadcasters are now under increasing pressure to present superior quality content, as is reflected in some recent trends:
Narrowcasting or launch of specialty or niche channels, which achieve faster breakeven (given the lower investment) focus also being brought onto regionalization and content creation for Tier II and Tier III towns.
Launch of reality shows, despite the high investments required, gaining viewership; broadcasters are depending on reality shows for channel branding.
Near immediate launch of movies on the broadcasting platform following theatrical release, although at high acquisition costs; however revenue potential of such broadcasting remains a challenge for the broadcasters despite the relatively high gross rating points (GRPs) of the programmes.
Switchback to the outright exclusive rights model for movies to reduce fragmentation of viewership, albeit at higher costs.
Increasing presence in the overseas markets so as to tap non-resident Indians (NRIs) who have been demanding Indian content; this along with dedicated local programming is opening up an additional revenue stream for Indian broadcasters.
The television industry in India continues to undergo solid competition from the digital cable and satellite TV industries. The cable TV industry, in special, represents a bigger threat to future industry growth. A number of elements points to low development in advertising revenue, including forecast low economical growth, the declining total share of the TV audience, and competition from new media. The dim 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.
PORTERS FIVE FORCES ANALYSIS OF INDIAN BROADCASTING INDUSTRY.
Bargaining power of Buyers.
Strength of Force-High
The bargaining power of customers determines that how much customer can impose pressure on the margins and volume of a industry.
Viewers experience frequently changes, providing little faithfulness to any particular network.
Advertising buyers dictate television programming choices.
The supplier’s customers are bitty, so their bargaining power is low.
The customer has awareness about the production costs of the products.
Buyers (end users as well as advertisers) do not face significant switching costs and
are extremely price sensitive
Bargaining Power of Suppliers .
Strength of Force– Low- Medium
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 supplier encompasses a large number of small operators.
The service cannot be differentiated and can be replaces by substitutes.
The cost of switching from one supplier to another supplier is very high.
The customer has awareness about the production costs of the products.
Threat of New Entrants.
Strength of Force-Low
In Indian television broadcast industry, new entrants could change major determinants of the market environment (e.g. price, market share and loyalty) at any time. There is always a hidden pressure for reaction and alteration for existing players in this industry. The threat of new entries will depend on the extent to which there are blockades to entry. These are typically
High start-up capital is a big de motivator.
It is difficult to access the distribution channels for new entrants.
New entrant has a number of problems finding skilled employees, materials, and suppliers.
Serviceable used equipment is expensive.
Long-lasting economies of learning and scale also de motivate the potential new entrant.
Economies of scale (minimum size requirements for profitable operations).
Limited important resources, (e.g. qualified expert staff).
Raw materials are controlled by existing players.
Threat of substitutes.
Strength of Force-Medium
A threat from substitutes exists whenever there are alternate products with lower prices of better functioning parameters for the same purpose. They could possibly attract an important proportion of market volume and therefore reduce the potential sales volume for existing players. This category also associates to complementary products. Similarly to the threat of new entrants, the substitutes determined by factors like.
The relative price for performance of substitutes.
Customers have to 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 could be substitutes (concerts, games, gambling, gardening, sports, and restaurants.
COMPETETION IN INDIAN BROADCASTING INDUSTRY.
As broadcasting is one of the main biggest industries of any country, so like all other industries there is strong competition in Indian broadcasting industry.
The entry of newer players in the Indian broadcasting industry has had the positive impact on expanding the overall market.
TV Channels indicated a healthy trend, not only the number of channels went up in 2009, but also, there was an increase in advertisement volume inventory which resulted in a growth of 31% in advertisement volumes in the same year. There was a stark increase in the amount of channels with the introduction of Colors, 9X, Real and Imagine in GEC (General Entertainment Channel) genre, where as channels like UTV action movies, Discovery Turbo, Discovery Science, were introduced in the non-GEC genres in 2009 and 2010. The number of channels grew from 389 in 2008 to 461 in 2009 registering an increase of 18.5%. The launch of new channels last year propelled the demand for fresh contents.
Key Players in Major Regional Broadcasting Markets.
Andhra Pradesh (Telugu)
Tamil Nadu (Tamil)
Zee entertainment, Sony Entertainment, Star TV, Doordarshan, and NDTV are the major player in the country
MARKET SHARE OF INDIAN BROADCASTING INDUSTRY:
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.
In service sector the portion of media broadcasting was slowly increased in the year 2008 due to the floods and elections the media broadcasting industry was increased.
The swift growth and change in the television broadcasting sector is composed of several essential characteristics: the emergence of mega global communication companies as a result of merger and acquisitions; privatization of existing broadcasting companies; the relaxation of foreign ownership restrictions; corporate investment in newer media such as cable and satellite television; and transnationliztion of advertising and its convergence with communication empires to create a demand for and to promote cultural products and other industries such as consumer goods and services.
GROWTH OF INDIAN TEEVISION BROADCASTING INDUSTRY.
The Indian television broadcasting industry had be seeing robust groth since 1980s and year 1991-1992 saw decreae in the growth of this industry, and after liberalization it again starts to growing. Indian TV consists of television distribution, advertising content and other services has reported a compounded annual growth rate(CAGR) of 13.8% over the period of 2005 to 2009 increasing to Rs 26,550 crores according to industry estimates. The industry continues to remain at an attractive mode of entertainment because of its reach and penetration.
KEY CHALLENGES FOR INDIAN BROADCASTING.
1. Digitalisation – The slow pace of digitization is a main challenge for the industry. Digitization would bring about transparency and address ability in TV distribution and is the need of the hour.
2. Compelling content – Indian audience is looking at new content the key to attract more viewers’ can be done by building quality content.
3. Talent Cost – Managing these costs would be the major challenge.
4. Low ARPU’s and high customer acquisition.
5. Lack of sophisticated measurement tools for measuring.
FUTURE OF INDIAN BROADCASTING INDUSTRY.
Television broadcasting in India had an urging past, grew with creation, innovation and popular cultural influence. As it is coming in of age mid-20th century, the generations of TV audience has happily clinched their broadcasting experience. For the industry, building a connection with consumers was a pretty straightforward, one-to-many experience until recently.
The Television industry is experiencing a flock of fresh channels being launched almost every year. TV is also piercing into the rustic areas and is a promising segment. Houses with televisions are likely to grow from 112M to 200M in a a small number of years.
Current size: Rs 14,800 crore
Projected size after 2 years: Rs 42,700 crore
CAGR(compounded annual growth rate): 24%
Indian television broadcasting has become the third largest country in television broadcasting market today and cable penetration is expected to grow at a higher rate. Now more that 350 channels are available for the TV viewers today..
It is found that almost 40percent of households in India are still without television connections which is actually highlighting the scope of growth in the broadcasting industry in near future. Almost all the revenues generated in the television broadcasting industry is through advertisements, followed by subscriptions. Advertisement market in India is currently valued at 1,067 million US dollars and is expected to grow at a higher rate with the increase in number of channels and TV viewers. In the next five years the subscription revenues are floating to be the important growth driver of the Indian television broadcasting Industry.
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