Chaptefl 3 Media & Newspaper Industry
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CHAPTEFL 3 MEDIA & NEWSPAPER INDUSTRY Ph.D. Thesis of Mr. Rahul Shiledar CHAPTER 3 MEDIA & NEWSPAPER INDUSTRY 3.0 What Is Media? Media refers to various means of communication. The type used to communicate the message may be any, e.g. newspaper, television, telephone or Internet. Rajan Saxena in his book Marketing Management, second edition; defines media as, “another facilitating institution. He says, “Media refers to daily newspapers, magazines, technical journals (called the print media), hoardings, billboards, neon signs and so forth (called outdoor media) and cinema and television, video, cable TV and radio (called the electronic media). (Saxena, 2002). The researcher is of the opinion that this definition has its limitations. First, it defines media as a facilitating institution. However one can see today, that the media is playing a much important role than just a facilitator. Media is involved in many activities like sting operations to bring forth the issues of corruption or working along with the masses and corporate on various issues such as environment or any other local problems. Media is now involving itself in a much deeper level, where at times it sees that at least the smaller problems are solved after giving them a voice through their media. The second limitation in the definition is that it does not mention media options like films, events, exhibitions and even the Internet and Mobile. Lately there has also been a new addition to the electronic media in terms of DTH (Direct to Home). 3.1. Media Types The media industry today has grown to a large extent and covers various types of communication methods. The media industry is prominently segregated in the following types: Print, Electronic (Radio & Television), Outdoor, Digital (Internet & Mobile), and Events & Exhibitions. 47 Ph.D. Thesis of Mr. Rahul Shiledar 3.1.1 Print: The print media mainly includes newspapers in various languages with various frequencies, magazines, journals, periodicals, and business directories. The trends in the print industry are changing rapidly today. The print media industry started changing since about last 50 years and still shows new innovations. Deregulation of media took place in the year 2002 and amendments in it in 2005. (Kohli-Khandekar, 2006). Especially since the deregulation of media the print industry has seen a steep rise. In the magazines category, the specialized magazines segment too has created a great impact on the print industry. The rising advertising costs in the conventional daily newspapers in each city, and the growing strength of bigger cities has also given birth to a new segment of newspapers, which are area centric newspapers. Many a times these are like the supplements by the regular newspapers. One can also see more localized and specialized newspapers which are neither circulated on a daily basis nor contain the conventional news. Local advertisers like retailers have started adopting these newspapers to advertise their products to the specific demographic area and at a much cheaper cost. There is another segment in newspapers which is advertising-oriented newspapers which mostly include advertisements along with very little news or story content. The sole purpose of these newspapers is offering a gallery of advertisements, with little emphasis on the quality aspect of paper, printing, or any other parameter. This category of newspapers too is not a daily newspaper category. 3.1.2 Electronic: The electronic media mainly includes films, music, radio and television. A) Television: The television industry in India has seen a great amount of change after the post-liberalization policy in 1991. Till then viewers across India were offered services only by the Government of India. There was very little focus on providing variety content. The technology too had not been upgraded. Post 1991 with the birth of India’s first private entertainment 48 Ph.D. Thesis of Mr. Rahul Shiledar channel, Zee, Indian television industry got a new face. .Other channels followed the suit almost immediately. Other upcoming media in electronic are DTH (Direct to Home) services where a bouquet of channels is offered for viewing on a monthly payment basis. In the nineties with the inflow of several channels and the cable technology in place, people started receiving television channel services through cable operators. However this was a much unstructured approach. Today the national and international players have stepped in with a long term strategy and are providing those and many more services with a more structured approach. There are about 160 satellite channels broadcasting in India as per the reports in 2005, as per reports from the book, “The Indian Media Business” by Vanita Kohli- Khandekar. These are earning revenue of more than Rs. 79 billion from advertising alone. After all other revenues from cable advertising, DTH, subscriptions and others are added up the industry has revenue to a close of Rs. 185 billion. This is the extent to which the television industry has grown in just 50 years in India since September 1959. (Kohli-Khandekar, 2006). B) Radio: The radio industry too was stagnant without too many variations in either content or technology till about a decade back. However with the privatization of radio the radio media saw huge changes in the way people heard radio. The radio media was looked at as one of the most orthodox media without much response from the new generation. BCCL Group’s (ENIL) launched Radio Mirchi and the picture changed completely. Today one can see many regional as well as national media houses launching their regional or national radio channels. However the radio too has its own limitations as the private radio channels are not allowed to broadcast news through them. 3.1.3 Outdoor: The outdoor media is very elaborate and includes hoardings, mobile hoardings, banners, posters. Point of Purchase material, and the latest 49 Ph.D. Thesis of Mr. Rahul Shiledar entrant OOH (Out of Home). OOH includes various media vehicles like multiplex branding, Mall branding, or television sets in public places. This is one media where there is not much of any syndicated research or data available on the media consumption habits or the habits of the target audience. In spite of the lack of any authentic data availability the spending on this media is huge. Neither can media planners ignore this media, nor can they give it little importance. 3.1.4 Digital: The digital media includes Internet media. This is the latest entrant in the media industry of India. With the rapid and voluminous growth of use of technology for communication, Internet media too got a grip over the media industry. Although new, the media is fast gaining momentum and the usage of Internet in rural as well as urban India is growing at a very rapid rate every year. This media is facing limitations of illiteracy, infrastructure as well as the lack of motivation to change with the times. The limitations are also from the Government in terms of lack of infrastructure development especially in the rural areas. As of 2005 the Internet media industry is close to Rs. 22 billion. This includes advertising, Internet access and e-commerce. (Kohli- Khandekar, 2006). 3.1.5 Events & Exhibitions: Events and exhibitions, also known as the (Below the Line) BTL activities are a very strong media to reach the end user, consumer directly. Below the Line (BTL) is a terminology used in the advertising industry that indicates activities like events, exhibitions and fairs which are more in relation to the direct contact with the end user. It provides no hurdles in terms of communication with the customer directly. This media is strongly implemented across India by various small and big brands. An interesting thing to know is that many big media houses have diversified into this media and are providing their customers more than just advertising in their media. The rising costs of advertising in media, increasing competition, and unreliability of response are some of the factors why media houses have engaged into exhibitions. A platform to provide the advertisers a direct 50 Ph.D. Thesis of Mr. Rahul Shiledar opportunity to interact with the consumers and a 360° approach are also the obvious reasons for media houses to diversify into events and exhibitions. 360° approach is a term used in the advertising industry to signify a total approach encompassing every available media to reach the customer. 3.1.6 Films: An important and a significant media that is rising very fast in India among other countries around the world are the films. Since a long time brands have chosen films as one of the medium to advertise their brands. Some of the important reasons to associate with films are that, one, the companies brands are endorsed by the actors at least for that particular film. Second reasons is that the films a huge audience that goes into lacs, that too within a short period of time. Third reason is that the audience has a tendency to relate the attributes of the main character of the films to the attributes of the product. People change their perception towards the brand being used in the film and companies tend to see an increase in sales. One of the finest examples from the Hollywood industry is the James Bond movie, Casino Royale, which used many big brands from Ford Mondeo, to Omega watch to Jaguar. The whole effort is towards integrating the brand with the film and not just placing it in the film. The attributes of the brand should blend in with the attributes of the main character as well as with the film. Other than this, films are also highly used to promote various social issues, especially by the government organisations like for rural education, aids awareness and health education.