South Asian Business news and information

I have been a keen observer of India for over two decades and I have to say that I am simply amazed with the explosive growth of Indian media business in the last 15 years. Free market economy coincided with open media in India and a lot of money has been invested in the media business in the last 10 years. The media business has become so lucrative that these days; Indian consumers can find new TV channels and newspapers on a regular basis. The growth is huge and explosive.

When there are too many players in one field then naturally the potential for making profit decreases.

In fact, two problems will happen to the Indian media business soon. Firstly, there will be too many TV channels and newspapers (and even Radio stations) to fight for the limited advertising market (after all, India is not a rich country). Thus, in the long run, the bubble may get burst.

Sevanti Ninan wrote:

Among many upbeat estimates of how much media will grow in India is one from Group M, a Britain-based global media investment management company which released a new study earlier this month estimating that media investment in India will exceed $5 billion next year, and is growing at an annual compound average of 21 percent. The Federation of Indian Chambers of Commerce and Industry (FICCI) estimated earlier this year that in another five years media and entertainment in India will be worth around $22 billion.Investment is leading to new media players rushing in, but even in an economy growing at around nine percent, is there enough advertising to sustain this boom? In 2006, advertising expenditure was 23 percent higher than in 2005, but advertisers increasingly feel that the fragmented market is delivering less for their money.

The second problem that may happen is even worse than the first one. New media companies need a lot of new skilled media professionals. You cannot create skilled media professions within a short time. So, naturally, there is now a shortage of skilled and experienced media professionals in India. This problem will become more acute in the coming months.

What is your idea about this matter?

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