2. INTRODUCTION:
STRUCTURE OF INDIAN BROADCASTING INDUSTRY
INDIAN
BROADCASTING
INDUSTRY
Television
Print
Film
Radio
Music
OOH
Gaming
Visual
Effects
Internet
Advertising
Animation
TOPIC OF ASSINMENT: TO STUDY THE INDIAN BROADCASTING
INDUSTRY AND TO ANALYSE THE CHANGES IN THE RELATIONSHIP
PRACTICE OF THE INDUSTRY.
3. The “Indian Broadcasting Industry” consists of many different segments under its folds
such as television, print, and films. It also includes smaller segments like radio, music, OOH,
animation, gaming and visual effects (VFX) and Internet advertising. Entertainment industry
in India has registered an explosive growth in last two decades making it one of the fastest
growing industries in India. From a single state owned channel, Doordarshan in the 1990s
there are more than 400 active channels in the country. Worldwide, 2010 saw the global
economy begin to recover from a steep decline in 2009. Improved economic conditions in
2010 played a major role in a rebound in customer spend. Since the world economy begin to
recover from the global financial crisis of 2008, improved economic conditions played a
major role in rebound in consumer spend. While India was not critically impacted by the
downturn in 2008 and 2009, it demonstrated one of the highest growth rates this year and
continued to at a healthy pace. The rising rate of investments by the private sector and
foreign media and entertainment (M&E) majors have improved India's entertainment
infrastructure to a great extent. As per the recent report by PricewaterhouseCoopers (PwC),
Indians are likely to spend more on entertainment in the coming years with a steady growth
in their disposable income. And as per the combined survey report by KMPG and FICCI, the
entertainment industry in India is expected to expand by 12.5% every year and is likely to
reach US$20.09 billion by the year 2013. The industry pegged at INR 5808 billion in 2009 as
compared to INR 3565 billion in 2005. The Indian Media & Entertainment Industry grew from
US$12.9 billion in 2009 to US$14.4 billion in 2010, a growth of 11 per cent, according to a
report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and
research firm KPMG. The report also states that backed by positive industry sentiment and
growing media consumption, the industry is estimated to achieve growth of 13 per cent in
2011 to touch US$16.2 billion. As the industry braces for exciting times ahead, the sector is
projected to grow at a CAGR of 14 percent to reach US$28.1 billion by 2015.
HISTORY OF INDIAN BROADCASTING INDUSTRY:
Radio broadcasting was initiated in 1927 but became a state responsibility only in 1930.In
1937 it was given the name All India Radio and since 1957 it has been
called Akashvani. Limited duration of television programming began in 1959, and complete
broadcasting followed in 1965.[14]
The Ministry of Information and Broadcasting owned and
maintained the audio-visual apparatus—including the television channel Doordarshan—in
the country prior to the economic reforms of 1991.[15]
The Government of India played a
significant role in using the audio-visual media for increasing mass education in India's rural
swathes. Projected television screens provided engaging education in India's villages by the
1990s. In 1997, an autonomous body was established in the name of Prasar Bharti to take
care of the public service broadcasting under the Prasar Bharti Act. All India Radio and
Doordarshan, which earlier were working as media units under the Ministry of I&B became
constituents of the body.
Following the economic reforms satellite television channels from around the world—
including BBC, CNN, CNBC, and other foreign television channels gained a foothold in the
country. 47 million household with television sets emerged in 1993, which was also the year
when Rupert Murdoch entered the Indian market. Satellite and cable television soon gained
INTRODUCTION CONTI……………
4. a foothold. Doordarshan, in turn, initiated reforms and modernisation. With 1,400 television
stations as of 2009, the country ranks 4th in the list of countries by number of television
broadcast stations.
On 16 November 2006, the Government of India released the community radio policy which
allowed agricultural centres, educational institutions and civil society organisations to apply
for community based FM broadcasting licence. Community Radio is allowed 100 Watt
Effective Radiated Power (ERP) with a maximum tower height of 30 metres. The licence is
valid for five years and one organisation can only get one licence, which is non-transferable
and to be used for community development purposes.
Television Industry:
Television is one of the major mass media of India and is a huge industry and has thousands
of programs in all the states of India. Today India boasts of being the third largest television
market in the world. The small screen has produced numerous celebrities of their own kind
some even attaining national fame. TV soaps are extremely popular with housewives as well
as working women. Approximately half of all Indian households own a television. Television
first came to India in the form of Doordarshan (DD) on Sept 15, 1959. Doordarshan is the
National Television Network of India and also one of the largest broadcasting organizations
in the world. Apart from the state run Doordarshan, there are six DTH players with 54.52
million DTH users in India with the present prediction; it is likely to overtake the US in terms
of the largest DTH market in the world. As of 2012, the country has a collection of free and
subscription services over a variety of distribution media, through which there are over 823
channels of which 184 are pay channels. Total television viewership of 415 million is
amongst the world’s highest with nearly 15-16 Television companies beaming programmers
to India. The major players being Doordarshan, STAR TV (Satellite Television Asia
Network), Zee Television, United Television, CNN, Sony Television, ATN (Asia Television
Network), BBC World, SUN TV, Discovery Channel, TNT and Others. India’s television
business has an estimated $3.4 billion in revenue in 2005, according to
PricewaterhouseCoopers. With the government is focusing more on Digitalisation, TV
distribution is taking new shape Digitalisation has been a major challenge for the
government as digital cable is not gaining momentum. According to the new deadline, pan
India digitalisation as expected to happen by December 31, 2014. Another challenge for the
Television Industry is Average Revenue Per User (ARPU). India is amongst the countries
with lowest ARPU as compared to developed countries like US and UK where ARPU is
around US$45 to US$60, India has an ARPU approximately US$3.5.
Print Industry:
The Indian print media industry is expected to grow by 9.6 per cent over the period
2010-15. The print industry is expected to grow from Rs 128 bn in 2006 to Rs 232 bn by
2011, at 12.6% CAGR. While the newspaper industry is estimated at Rs 112 bn, the
magazine segment is valued at Rs 16 bn.The newspaper industry is also projected to
5. perform well for the next five years growing at a CAGR of 10.1 per cent according to a
report titled "India Entertainment and Media Outlook 2011" by PricewaterhouseCoopers.
Indian print industry is growing strong and is expected to grow similarly while the global
print industry is moving towards digitalisation and showing a negative growth rate year
on year.
Film Industry:
Films are the most important form of entertainment in India. Film industry in India is among the
largest in the world in terms of films produced (approximately 1000) in different languages which
include films in Hindi, Kannada, Bengali, Tamil, Telugu, Punjabi and Malayalam. Approximately
twenty-three million Indians go to see a film every day. Film Federation of India is the apex body
of film industry in India whose objective is to popularise and promote the cinema Bollywood
accounts for 46 percent of the total Indian film industry revenues film industry experts.
Radio industry:
Radio broadcasting in India started in British India in 1923 with the Radio Club of Bombay.
All India Radio (AIR) was established in 1936 which is one of the largest radio networks in
the world including the AIR FM. AM, FM and even Satellite Radio have made a huge impact
on the Industry in India. Most of the media houses either already have a presence in the
industry or are looking to get a license in the next round. Famous stations are Radio Mirchi
(of the Times Group) has maintained a lead position in most cities it operates in and other
channels like Radio City, Red FM, Big FM, Fever, Radio One have also been able to get
significant traction. Till 1990 Indian economy was closed, no private player was allowed to
enter and Akashwani has the sole responsibility to cater to the wide and culturally diverse
Indian consumer base. In the last 5 years, the Radio industry in India has seen a compound
annual growth rate of approximately 20% and has grown to a size of around Rs. 8.3 billion in
2008. By the end of the 2010, there were 245 active radio stations in India and had a market
size of INR 10 billion. It registered a cumulative growth rate of 11 percent from 2007 to 2010.
The industry is projected to grow at a CAGR of 20 percent over 2010- 2015 and is expected
to be INR 25 billion in terms of revenue.
Customer RelationshipPractices in Indian Broadcasting
Industry:
Reasons why Customer’s leave?
-Competition
-Product Problem
-Service Problem
-Other
6. CUSTOMER LOYALTY (Indian Broadcasting Industry)
CASE STUDY: PRACTICE OF DIGITAL CRM IN SONY MUSIC
Digital CRMinSonyMusic In musicindustry,decisionsare oftenbasedonfeelingsandemotions.
Thisis one of the reasonswhymusiccompanieshaven’tdone extensiveresearchesabout
customers.The changingeconomicsituationandchangingconsumptionhabitsare startingto
change thisin to directionwhere researchcouldbe consideredasvaluable tool inlaunching
productsas well asan assetin marketing.
COMPANY PRODUCT/SERVICE
AWARENESS
IMAGE
DISTRIBUTION
TRAIL
PERFORMANCE
REPEAT
VALUE
TRUST
LOYALTY
CRM PRACTICESIN INDIAN BROADCASTINGINDUSTRYCONTI….
7. Role of CRM in the Media Industry in India:
The Indian media and entertainment industry is one of the fastest growing industries in the
country. Its various segments— television, advertising, print media and radio among
others—have witnesses tremendous growth in the last few years. The media and
entertainment industry in India is likely to grow 12.5 per cent per annum over the next five
years and touch US$ 20.09 billion by 2013. Viewership across various segments is likewise
increasing and marketers are launching new channels to meet this growing demand. This
plethora of options available to the corporate advertisers has resulted in increasing
competition amongst media vehicles and this is when customer relationship takes the lead
role to cut through competition
FIGURE: BEST CRMPRACTICES IN INDIAN BROADCASTING INDUSTRY
8. New media companies require ways to scale their support organizations to keep up with the
pace of their innovations. Meanwhile, traditional media companies are urgently working to
retain their valued customers. It has therefore become imperative for media companies to
adopt new technologies and proven best practices to ensure maximum sales and
productivity. The change from the profit orientation of a business to customer centric unit has
lead to the surge of CRM inculcation in the modern business scenario and media has not
been left far behind.
A CRM application helps media companies become more successful by better serving the
needs of the target audiences and partners. A typical sales force automation solution will
assist Media Companies in the following
• CRM offers senior management within the media company with accurate visibility into
Sales Pipeline.
• It enables sales personnel to better manage the complex 2 way selling to customers and
their agencies and facilitates brand based selling.
• The proposal module enables automatic generation of personalized proposals from a
central rate card to eliminate errors and discrepancies.
• It helps in easy creation of proposal templates, discount masters and terms and conditions
masters so that proposals can be generated at the touch of a button.
• It facilitates effective media agency management.
• It enables central management of complex rate cards with various options such as time
bands, prime time
• Helps sales people to track and manage opportunities from start to final closure
• It enables effective sales activity management through a powerful calendar and activity
management tool
• It helps the management to monitor performance and productivity of the sales team and set
realistic sales targets
• It offers a centralized and complete view of the sales inventory which enables effective
inventory management and helps sales teams to achieve targets.
• By maintaining client and agency personal information it helps the media house provide
personalized service for increased customer satisfaction and loyalty.
CRM seems a perfect fit for media industry. Today companies in the media industry realize
that they can use a CRM approach to strengthen their relationships with subscribers,
advertisers and business partners and be an edge above there competition.
9. THE INDUSTRY FOLLOWS THE FOLLOWING PRACTICES:
1-FROM CONSUMERS TO CUSTOMERS:
In today’s world where competition between companies is increasing and customers have
more knowledge and choice in selecting products and services, companies must spend
more time than ever on thinking how to build long lasting customer relationships. To succeed
in attracting new customers and maintaining the current customers, company should focus
on becoming more customers oriented.
Customers can be inventive product developers, efficient product experts or widely spread
marketing machine. Customers should be more involved with the business. By benefiting
from customers collective intelligence it would be possible to raise business in to a new level
and create new revenue sources. When people get involved, they follow the artist with new
intensity. Also to get the contact information from each fan is important. When the product is
ready, customers are ready to buy it.
2-Fromcustomer tofriends:
With the aid of Internet, customers have become a marketing machine for companies. The
reason why it is important to look after and maintain this marketing machine is that the
company cannot affect marketing results directly or to how the company is described and
presented by the customers.
3-From product to experience:
Instead of offering products to people, companies can offer experience. In this world full of
opportunities and information due to the Internet, customers have already seen everything.
Selling a product is not enough and companies should start selling emotions, dreams and
offer experiences to customers. Companies can become "consumer experience companies".
3-From visibility to find ability:
To get customers communicate in company’s online environment and to activate them, the
company should have a good online presence and a good forum where people can gather
and talk. Checking every comment and post before it can be published makes customers
often feel like they are restricted, which will drive the conversation about the company
elsewhere. A proper amount of censorship is good, but it is valuable to trust the customers
and let them publish their thoughts freely. This way the customers feel like they have the
power to discuss about what they want and they will most likely keep the discussion going.
