This report of the Indian newspaper industry analyses English, Hindi and regional newspaper publishing and identifies the promise and challenge each faces.

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CONTENTSCONTENTS August, 2013 INDUSTRYINDUSTRY RREPORTEPORT EMERGINGEMERGING STILLSTILL 6 While the developed world is ggloomyloomy about the newspapernewspaper business, it is flourishinflourishingg in IndiaIndia.. CONTENTS SPECIAL ENGLISHENGLISH NNEWSPAPERSEWSPAPERS MINDMIND THETHE LANGUAGELANGUAGE 1010 AsAs the growth of English dailies slowsslows ddown,own, ttheyhey wwillill hhaveave to worworkk harderharder to get aahead.head.

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By Sumantha Rathore

Cover Illustration Tiffin Box

Design Vinay Dominic

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ENGLISH HAS TRADITIONALLY BEEN THE MOST PROFITABLE SEGMENT. NOW, LIKE AN ICEBERGE EMERGING FROM THE DEEP, HINDI BUSINESS HAVE TIFFIN BOX BUILT SCALE. THE FULL POTENTIAL OF REGIONAL LANGUAGE DAILIES, THOUGH, HAS STILL TO BE SEEN.

6 August 2013 - afaqs! Reporter I SPECIAL REPORT INDUSTRY REPORT EMERGING STILL

While print dailies are struggling in much of the world, they are booming here. There are some peculiarly Indian reasons for this.

t is like the case of the distant Icousin who has fallen on bad times. Ought that to become a reflection on the state of one’s own finances? Not fair, is it? That’s pretty much what has happened to the Indian newspaper business. For the past decade and more, the international media has been flooded with gloomy prognosis about where print is heading. And quite rightly so, because advertising revenue in print in the US has declined precipitously since 2000. Since Indians ABOUT 90 PER are clued into Western trends because of CENT OF PRINT the English connection, it has naturally been assumed by many that the same READERS IN fate applies here. The most influenced CONSUME by this have been the young adults from CONTENT IN the metros, many of whom do indeed get HINDI AND their news online. bias exists is simply because of language. REGIONAL They take their cue from senior digital The vanguard of the online movement experts who, with the zeal of the new has been led by people comfortable with SUSHIL KUMAR LANGUAGES. convert, can be insular and dismiss other English and because they see everybody media out of hand. To their mind, the they know online, they assume that this is fact that online is growing confirms that true for the rest of India. It isn’t, not yet. all other media is dying, especially print. The vast bulk of the print readers in In India, certainly, this is far from being India, about 90 per cent, in fact, consume the truth. Unlike the West, in India all their content in Hindi and regional media is growing, including print which languages. And relatively few of them is, in fact, doing extremely well barring have gone online for a variety of reasons. the odd blip. Some tech issues plus the relative lack of Over the last five years, advertising in variety in content compared to English, print has been growing at a compounded has inhibited the growth of online. annual growth rate of about 9 per cent. Votaries of online are apt to wag a According to KPMG, an international finger and underline how the internet- consultancy, this is the rate that will be enabled mobile phones will change the maintained for the next five years as well. game for Hindi and regional newspapers. One of the reasons why the online However, on evidence so far, Indian

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users depend on their phone to provide are two other factors that protect Indian them entertainment – video, music – print against the much-anticipated digital rather than news. onslaught. Neither gets the importance India is not the only country in the they deserve when futurologists predict world where newspaper readership the early demise of dailies. is growing. Two other such major First, newspapers are priced low in THE markets are China and Brazil and both, India relative to most other countries. POPULARITY incidentally, are several years ahead of This has been true for English dailies OF LOCAL India on the economic development for years but less so for regional and LANGUAGES IS curve. China’s internet penetration is Hindi titles, which were priced higher about four times higher than India’s, for fewer pages. As the competition has THE REASON which is what makes its affection for print become fierce, non-English dailies have

INDUSTRY REPORT WHY PRINT IS all the more remarkable. This emphasises been keeping their prices down, too. LESS AFFECTED that India has a thriving newspaper While it is easy to think of online BY ONLINE IN business not just because it is poor. as ‘free’, that’s a misnomer. Content is INDIA, THAN The popularity of local languages is free but access is not. Certainly when it the first reason why print is less affected comes to accessing news and features, ELSEWHERE by online in India, than elsewhere. There a newspaper for `100-150 per month is still the most cost-effective way to consume news through the written word. Also, a newspaper is shared in a way a screen can’t be. SUSHIL KUMAR The other, equally unappreciated aspect of newspaper logistics is that a newspaper is dropped at a reader’s home at the crack of dawn. This is a privilege not available in many places in the West, because the labour cost of delivering the title is prohibitive. In India, the abundance of hands allows this, although the hawker gets a share of a cover price which is low. This survey looks at English, Hindi and regional newspaper publishing and identifies the promise and challenge that each faces. „

8 August 2013 - afaqs! Reporter I SPECIAL REPORT DIGITAL MADE SIMPLE SPECIAL

ENGLISH NEWSPAPERS MIND THE LANGUAGE. THERE ARE OTHERS For a long time, English was the only worthwhile game among dailies. Now, as the markets move to smaller towns, publishers have to adapt. And then there is digital to worry about.

hat a difference a decade can Nothing exemplified the promise of Wmake. Ten years ago, English riches better than , was the only place to be in the Indian . Within the print business it newspaper business. There were large wasn’t considered an edition: it was newspapers in other languages too but viewed as a press that printed money they lacked in pages, confidence and for its owner, Bennett Coleman & Co profit. They were, in every sense, the Ltd (BCCL). It was rated as unassailable, English daily’s country cousins. The which is why, for years, nobody dared big game was in the metros where the challenge its monopoly in Mumbai. markets and the money lay. No wonder, Finally, the temptation got too great. publishers of other dailies railed against Hindustan Times, from Delhi, set foot in what they believed was the natural bias of the city. But more dramatically, the Zee western-oriented media planners towards group and Dainik Bhaskar formed a joint English. venture to launch DNA, which tried to take on The Times of India in its lair in 2005. (Bhaskar has since sold its stake in the daily to its partner). English print media still enjoys the Eight years later, The Times still same clout. The rate of growth makes more money from its Mumbai has come down a bit but it has to edition than any other paper in India, do with the slow economic growth but everything else has changed. The and not because advertisers prefer fascination with both English and metros other languages or mediums.. is past its peak and there are many who RAVI DHARIWAL wonder if the best of the English press is CEO, BCCL already behind it. Ravi Dhariwal, CEO, BCCL, doesn’t

ENGLISH DAILIES BALANCED COCKTAIL TEND TO BE HIT (Advertising revenue by language over the years, in Rs billion) HARDER IN A 2009 2010 2011 2012 2013* 2014* 2015* 2016* 2017* SLOWDOWN, IN English 49 53 57 59 62 66 70 74 79 PART BECAUSE Hindi 31 37 41 45 49 56 64 73 83 Regional 30 36 42 46 51 57 66 75 85 THEY THRIVE IN Total 110 126 140 150 162 179 200 222 247 THE METROS. Source: KPMG in India analysis, Industry discussions conducted by KPMG in India *Provisional

10 August 2013 - afaqs! Reporter I SPECIAL REPORT think so. He contends, “The English should ready themselves for the digital print media still enjoys the same clout. era, but, as anyone familiar with the However, the rate of growth has come experience of news online knows, this is down a bit but that has to do with the easier said than done. Advertising online slow economic growth and not because is extremely purchase-intent oriented advertisers prefer other languages or and people seeking news are generally other mediums.” not in the frame of mind to shop, as they English dailies tend to be hit harder in might be on, say, a portal specialising a slowdown, in part, because they thrive in automobiles. Besides, with Google in the metros which feel the effects of an economic reverse the most. Last year, as the economy slowed down, dailies in other languages continued to grow ad revenue by about 10 per cent – for More than anything else, SUSHIL KUMAR English, though, the figure was down to the segments themselves 3.5 per cent. have evolved in the last few The English press is still remarkably years. Categories like well placed: though it has only about a classified ads have taken a tenth of the total average issue readership, different route altogether. it takes in about 40 per cent of the RS SURIYANARAYANAN advertising revenue that print attracts. It Business Director, LMG has indeed been a golden age for English newspapers. Will digital come along to spoil the party? dominating the advertising scene in India OVER THE PAST in a way it does in few markets elsewhere, DECADE, THE STAYING ALERT ad rates are abysmal. COMBINED There is no doubt that English newspapers Debu Mishra, an independent media are threatened by the rise of digital more consultant, says that the threat is in the CIRCULATION OF than dailies in any other language. It is metros and mini-metros. Digital still ENGLISH DAILIES the privileged English speakers who have has a long way to go, he thinks, but the HAS GONE UP been the first to go online. Equally, it growing popularity of mobile news apps is BY OVER 50 is English that unlocks the vast treasure what perturbs him. “English dailies have of content on the internet – though, to constantly upgrade their offerings, in PER CENT, BUT admittedly, video knows no language. terms of content, quality, packaging and READERSHIP HAS The 125 million Indians online are also sales promotions and make the product GROWN ONLY IN the ones most likely to move to mobile more interactive,” he thinks. SINGLE devices and gather information there. There is some consolation, though, There is one major warning sign that for Indians going online news is not FIGURES. about English’s apparent inability to such a priority. According to a survey grow further. Over the past decade, the last year, only about one in three Indians combined circulation of English dailies online has ever visited a newspaper site has gone up by over 50 per cent, but – and only one in 10 visits such a site readership has grown only in single daily. Clearly, they have other things to figures. In other words, people are do online. Such a low interest in news sharing their dailies less than before – online would be alarming in the long run and new converts are harder to find. This but, in the short run, it assures publishers suggests that Indians who do pick up the that Indians still depend on print or reading habit, stick to the local language television to catch the latest. in which they are most comfortable, If the impact of digital on reading instead of moving on to English. habits is one worry, the other is its impact It is convenient to say that publishers on advertising, especially on classifieds, ENGLISH NEWSPAPERS

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IN KEEPING WITH the most lucrative category of them all. (.com) and matrimonials THE MOVEMENT Publishers love those little ads, because (.com). Its record has been customers walk in so the cost of sales is mixed. OF CONSUMER low. Second, it ties the local community Hindustan Times, meanwhile, has MARKETS, to the paper. That’s changed dramatically put its considerable backing behind its ENGLISH DAILIES in the past decade, especially in the own job portal, shine.com, recently HAVE BEEN English press. introducing a social networking aspect to GRADUALLY Two fifths of classifieds have moved distinguish it from the competition. online, but the pace of migration is The advertising category least affected PUSHING INTO slowing down. If it does, it will provide by the digital boom is government SMALLER much needed relief. “More than anything advertising, which has largely limited TOWNS. else, the segments themselves have itself to print. Television and radio are evolved in the last few years. These rarely used by this lot of advertisers and

ENGLISH NEWSPAPERS turning to online is still a long way off for them.

FOLLOW THE YOUTH Digital still has a long way to go.

SUSHIL KUMAR The most worrying segment for English dailies have to constantly publishers of English dailies is young upgrade their offerings-in terms of adults, who are most likely to go off print. content, quality, packaging, sales Several publishers have launched tabloid- promotions-and make the product format dailies aimed at this demographic, more interactive. but the young have proved elusive. DEBU MISHRA Media Consultant THE SILVER LINING In keeping with the movement of consumer markets, English dailies have categories have taken a different route been gradually pushing into smaller altogether,” says RS Suriyanarayanan, towns. business director, LMG. The Times of India has entered Tamil Many English language print players Nadu and Kerala, whereas Hindustan gauged this imminent shift and started Times is fortifying its presence outside building their own online properties for Delhi and has launched an edition aimed classifieds. The front runner has been at Bhopal and Indore. Meanwhile, The , which put its might Hindu is strengthening its foothold in behind jobs (timesjobs.com), real estate the North. „

12 August 2013 - afaqs! Reporter I SPECIAL REPORT GUEST ARTICLE AMIT RAY “WORK TOGETHER”

o be in the game, you have to be the new age media owners were born Tthe game changer. No newspaper against a strong headwind. Some can sustain the bad weather by of the print publishers do dare the just being there. It has to fight, get headwind to win, but, at other times, hurt, again fight back, reinvent and it’s just a case of reinventing the old. re-model the business. One way of tackling a headwind which created this research. Newspapers are not FMCGs but is to create one’s own long-term While the industry does not need are the voice of the people. While tailwind. An initiative of this kind an alternative to IRS, what it does industrywallas can wish the issue should be at an industry level, need is a more thought-through away by saying it’s a habit, in reality rather than an organisational level. currency. While it is impossible to it’s much more than that. Let’s take the most widely spoken replicate TV measurement, which When an industry faces strong language, Hindi. Between 2003-2012, is time-weighed, other options do headwinds, stakeholders unite the population has grown and so has exist. I would have liked a multi- and fight the crises. Unfortunately, literacy, but the gap between “can dimensional value currency and stop there is no unified thinking amongst read Hindi’ and “do read Hindi” has the ease of access, which leads to newspapers. Though there are remained the same. There is a need the creation of a scorecard without a platforms for unification, they are to drive this ratio. context. Let me explain. used for arbitration and lobbying, not In an analogical sense, Pratham, Print is a single matrix medium business ideation. a UNICEF-promoted organisation (Average Issue Readership or AIR] Before independence, with its simple philosophy, ‘learn to and, to top it, it is easily available or newspapers were meant to talk read & read to learn’, is changing the calculable as a cross tab. If cross tab about people and raise issues. But school dropout rates in . is allowed only for Total Readership (in today’s parlance), while they I am sure that if the Hindi publishing (the full-blown strength of the did deliver content, the words had industry had articulated this as a medium) and people are made to a strong consumer-to-consumer collective problem coming in the work to calculate AIR, the perception bonding. You could call it patriotism. way of growth, someone could have that print is consistently going down, I have known a few print owners attempted a solution. will reduce significantly. Print owners who strongly believed in the power Digital is one domain which can can also engage agencies and clients of raising issues, and trust me, their get newspapers the push. The sooner in a more meaningful way. business is quite healthy. If you they embrace it wholeheartedly, the Clients look at only AIR and short-change on the basic premise, better it will be for everyone. Divya decide about a publication’s inclusion bad times will catch up. Bhaskar Gujarati is a classic example and the price to pay. They never of this. It has left its competitors reflect on what a paper does to a TURBULENT TIMES behind in the online race. And reader, first thing in the morning, or Today, no business in India in India people who understand the Gujarat the level of engagement that an edit- can afford to relax. In a funny way, landscape will know what it takes to wrapped environment creates, and it’s survival by suicide. Look at be there. not just for a commercial message. Colgate: though it dominates the If access to AIR is made less easy, huge “morning ritual” category, it is SINGLE CURRENCY a lot of loose comments about print always on its toes, always restless, I have given 14 years of voluntary will cease. „ never satisfied. Many print owners service to better the IRS. I was the believe they were born with a golden Joint Chairman of MRUC (Market (Amit Ray is Founder Partner at spoon in their mouth, whereas a lot of Research Users Council), the body Media First, a consultancy.)

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HINDI NEWSPAPERS SUSHIL KUMAR

SPLIT RUN Hindi dailies have been in a race to (Average issue readership vs expand their network of editions and draw revenue, in per cent) 2012 LANGUAGE in the national advertiser. AIR SPLIT REVENUE SPLIT English 10 39 Hindi 36 30 ay back in 1995, Dainik Bhaskar Regional 54 31 Wtook the bold step of looking Source: IRS Q3, KPMG in India analysis beyond its home turf of Madhya Pradesh. The newspaper was the first Hindi daily competition head-on elsewhere is an old to launch an edition outside its home story. But all that aggression has been state, when it entered Jaipur, Rajasthan, fantastic for the Hindi press. It has forced and shook the established order. innovation that was unimaginable two Today, Hindi dailies moving out decades ago and and has opened up of their comfort zone and taking the a business that was family-owned and inward looking. The expansion with new editions – Dainik Jagran, for example, has 37 main editions and Dainik Bhaskar has 36 (and Over the past few years, we both have many more sub-editions) - is have seen significant growth a slow, painful process, even more so in the Indian regional print now, since everyone has the same thing media industry, which has long in mind. This is what makes acquisitions surpassed the growth of English tempting. Already we have seen Jagran news dailies. Prakashan acquiring Nai Dunia in GIRISH AGARWAL Madhya Pradesh for an undisclosed Promoter Director, Dainikk Bhaskar amount last year. More recently, Amar Ujala was in the news when

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Mergers and acquisitions have been fewer than one would have imagined. Consolidation (in the form of For many, running a newspaper is a strategic alliances, JVs, takeovers, family business and one which gives the minority stakes) is the way ahead owners their identity and local clout. for the industry to grow and face What would they do without it? In other competition from digitalg and cases, deals haven’t happened because the electronic media. seller has unreasonable expectations on KK GOENKA valuation. Dodgy accounts are another General Manager, Prabhatb Khabar issue. There are dissenting voices on the value of mergers. Says Arvind Kalia,

HINDI NEWSPAPERS (Zee) and Dainik Jagran both expressed marketing head of Patrika Group, “No interest in buying a stake. Dainik Bhaskar doubt that big is beautiful nowadays. Group had acquired Suarashtra Samachar That’s why Patrika expanded its reach in Newspaper in Gujarat in the year 2006. the Hindi heartland, as well as to non- In the South, in a cross-media deal, the Hindi states. We did look at buying a Sun TV Network acquired the Tamil media house, but later abandoned the daily Dinakaran, in 2005. idea because the value of a newspaper It seems inevitable that a small house can’t be enhanced by taking over a number of brands will rule the Hindi less successful business.” belt. KK Goenka, general manager of Prabhat Khabar says, “For any industry THE GROWTH STORY there is room for two to three players for How large the Hindi game is becomes WITH THE RISE profitable growth, which is sustainable quickly evident on looking at the list over a long period of time. In today’s of the most widely read dailies: the top IN SPENDING capital intensive and price sensitive print three, Dainik Jagran, Dainik Bhaskar and POWER OF THE market, consolidation (may be in the Hindustan, come from here. POPULATION IN form of strategic alliances, joint ventures, As Mandir Tendolkar, vice president, SMALLER CITIES, takeovers, minority stakes) is the way Lokmat Media, says, “It works just like THE GAME IS ahead for the industry to grow and Bollywood movies. Although films are face the competition from digital and being produced in other languages, SHIFTING. THIS electronic media.” He thinks regional Hindi movies are the first choice of the HAS INCREASED players like Prabhat Khabar could audience. Emerging rural markets are THE DEMAND share resources by tying up with other playing an important role in the growth FOR REGIONAL independent regional players elsewhere of Hindi print, where a newspaper is not in the country. There hasn’t been much only a source of information, but leads to CONTENT. progress on this, though. a lot of discussion as well.” Lokmat Media’s Hindi newspaper, Lokmat Samachar, has been busy over the last two years spreading its reach in the There is no doubt that big is hardcore Marathi regions of Kolhapur, beautiful nowadays. That’s why Jalgaon, Pune and Aurangabad. The Patrika expanded its reach in the newspaper, on July 12, entered the Hindi Hindi heartland and to non-Hindi speaking belt of Madhya Pradesh with a states. But we didn’t want to do it separate edition in Chhindwara. by buying a media house. “All the language dailies have a ARVIND KALIA specific region to boast of,” points out Marketing Head, Patrika Group Debu Mishra, a consultant, adding, “but Hindi has the entire north, central and a majority of the east to penetrate.” It

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is harder for a regional player to defend advertisers that has set Hindi dailies territory, because the Hindi game has got racing to dot the Hindi belt with very large – and local. editions. However, this has had other In the past, growth in media consequences. consumption was driven by the metros Investors like the fact that, unlike where English was predominantly the English, Hindi dailies have had a healthy leader, but with the increase in spending cover price for a relatively smaller number power of the population in smaller cities, of pages. Traditionally, circulation the game is shifting. This has increased revenue has accounted for about 40 per the demand for regional content. cent of their revenue, more than twice As Hindi titles have increased their the ratio for English dailies. Because penetration of small town India, their advertising was relatively weak, publishers

HINDI NEWSPAPERS blanket presence has made them attractive had the mindset that demanded readers to national advertisers who need reach. pay. Since local competition was weak, And the more centres they cover, the readers went along. more irresistible they get. That has changed. The dailies may be much larger than before, but the competition is more intense too. To find acceptance in new markets, dropping the cover price is the obvious ploy. Emerging rural markets are Raising them is never easy. Gradually, playing an important role in the the share of circulation revenue in the growth of Hindi print, where a total revenue is declining. Perhaps there newspaper is not only a source of is no solution, but a higher circulation or information, but leads to a lot of pay revenue is a reassuring factor when discussion as well. the economy – and therefore advertising MANDIR TENDOLKARR – slows down. Still, north Indian states, Vice President, Lokmat Media the traditional economic laggards, have been performing well in recent years and that creates a huge upside for Hindi A HIGHER AD RACE newspapers. CIRCULATION OR Education, which was by far the largest Between now and 2017, according PAY REVENUE IS advertising category by volume in 2008, to KPMG, advertising revenue in Hindi ceded the top spot to automobiles in 2012. will grow at a CAGR of over 13 per cent, A REASSURING Following close behind was a category while circulation revenue will go up at FACTOR WHEN associated strongly with television, but less than 6 per cent per year. What this THE ECONOMY – rarely with print – fast moving consumer means is that the share of circulation AND THEREFORE goods. The biggest spenders of all, revenue will drop from 35 per cent in FMCG brands, have been tempted by 2011 to 27 per cent by 2017. (It has ADVERTISING – Hindi dailies because while the reach painted a similar picture for regional SLOWS DOWN. is vast, a message can also be sharply language dailies while, in the case of targeted via the plethora of editions. And, English, it foresees 6 per cent annual of course, it is affordable. growth in advertising and only 2 per cent The next level of growth, according in circulation during this period.) to the industry experts, is expected to “Over the past few years, we have seen be driven by financial services. “The significant growth in the Indian regional aspirations, coupled with available funds, print media industry, which has long is driving the consumption in smaller surpassed the growth of English news towns, and this is where the opportunity dailies,” says Girish Agarwal, promoter lies,” says a senior media planner. director of Dainik Bhaskar Corp Ltd, It is the competition to get national adding, “With increasing literacy and a

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rapid growth in the aspirations of mid- Apart from increasing the penetration income households in Tier 2 and 3 towns of its flagship brand, Dainik Jagran, the and cities, advertisers are keen to capture company is trying another avenue to their attention and mind space. Although woo young readers. Inext, the group’s this has resulted in a spurt in demand bi-lingual daily, covers 12 cities in four for most regional language newspapers, states. And its English city-centric paper, Hindi continues to be a preference and CityPlus, is extending its presence across is well poised for tremendous growth.” the country. As of now, the newspaper It is the recognition of the power of has 31 editions targeting premium Hindi that both BCCL and HT Media geographic localities. have thrown their clout behind Navbharat Hindi publishers have put their money HINDI Times and Hindustan respectively. where their mouth is and transformed

HINDI NEWSPAPERS PUBLISHERS re-launched its the landscape, as also their reputation. HAVE PUT Lucknow edition earlier this year, after There was an economic wave to ride and THEIR MONEY closing it in 1985. It is expected to soon they recognised that. introduce editions from other districts They have also worked hard at WHERE THEIR in , as well as restart its changing the perception about the MOUTH IS AND old editions from Kolkata, Patna and affluence of their readers, with both TRANSFORMED Jaipur. Hindustan Media Ventures Ltd’s marketers and agencies. It shows in the THE LANDSCAPE, (HMVL) Hindi daily, Hindustan, is also narrowing ad rates between English and planning to start more editions in its core Hindi dailies. Now non-Hindi dailies AS ALSO THEIR markets of Uttarakhand, Bihar and Uttar have the same battle to fight in the REPUTATION. Pradesh. coming decade. „

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REGIONAL NEWSPAPERS COMING OF AGE

What direction the Indian newspaper industry will take in future depends a lot on how the regional language newspapers can draw people to the daily reading habit.

o understand why regional cheese (up 58 per cent in same store Tnewspapers have done so remarkably sales), prickly heat powder (48 per cent) well in the last few years, it is instructive and pre-post wash products (44 per cent). to read a report released last year by In towns under one lakh, it was cheese research agency Nielsen, titled ‘Demand again on top with 103 per cent, followed Spotting: The rise of the Indian Small by prickly heat powder (53 per cent) and Town’. Referring to consumer demand, packaged rice (47 per cent). it says: ‘The charge is led by the tier Consumers from these towns are II and tier III towns. The metros have simply more willing to spend. When carried India for the last decade; now they asked residents of the four sample smaller towns have taken on the demand towns, the price of the most expensive baton.’ mobile handset at home, the figure was `8,610. In comparison, the answer in Pune was `6,512. Again, when they asked small towners whether they intended to The regional press has upgrade their TV sets over the next two always been growing, especially years, four out of five said they would – in the last one decade. It captures as compared to only three of five in Pune. newer markets and penetrates This story of figures tells us that deeper into the regions than any consumers in towns with a population other medium. of less than 10 lakh are eager to spend. VARGHESE CHANDY What is more, the report says, ‘there is a CGM, Malayala Manorama GGroup noticeable increase in the willingness to partake in categories and price segments, that were, until now, not associated with BRANDS ACROSS Based on a survey of four towns small town India.’ CATEGORIES across India with a population of between Brands across categories, from 1-10 lakh (Bhatinda, Jhansi, Nanded and FMCG to automobiles and everything ARE RUSHING Anantpur), the research firm found that in between, are rushing for the small FOR THE SMALL in 42 out of 83 FMCG product categories, town, the new Mecca of consumption. TOWN, THE same-store sales had grown by at least 10 Growth is coming from same-store sales, NEW MECCA OF per cent in Q4 2011, over Q1 of the same of course, but brands are strengthening year. And in towns with a population their distribution too, setting off an CONSUMPTION. of less than one lakh residents, growth additional surge of demand. NEWSPAPERS had exceeded 10 per cent, within three To cater to this new found focus of ARE FOLLOWING quarters in 53 categories. marketers, newspapers are also moving WITH ALACRITY. The fastest growing categories were into these markets with alacrity. Rising a revelation too. In middle India towns literacy rates are providing the additional (1-10 lakh), the fastest growing were boost.

22 August 2013 - afaqs! Reporter I SPECIAL REPORT

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seeing already established regional dailies strengthening their presence and new The regional press is a players entering the market, but owners better representation of the local of English dailies are taking the plunge milieu and is mostly the first point too. of reference for most The BCCL group announced of the population. the launch of Ei Shamay, a Bengali KRP REDDY newspaper for West Bengal. Similarly, Vice President, Marketing, The Hindu Group announced its plans Sakshi of coming up with a Tamil daily. Up north, Dainik Bhaskar Group launched Divya Marathi in Maharashtra, following WINDOW TO THE WORLD up on the launch of its Gujarati daily, A newspaper is still regarded as a guide to Divya Bhaskar, in 2003. information and personal development Tendolkar of Lokmat Media, points REGIONAL NEWSPAPERS in small towns. With each household out, “Look at the way publishers are wanting to do better, education is getting entering new markets, creating district a big thrust. Reading in any form is editions. All this is happening because of encouraged, as it is considered a window the tremendous potential. The regional to the world. In India, there cannot newspaper is the first touch point for be a more economical way of staying a household. Even if an adult buys it, informed about the happenings of the the child feels something for the paper, world, than through a newspaper. because it is being read by his parents Varghese Chandy, chief general whom he idolizes.” Lokmat has 68 district manager, Malayala Manorama Group, editions of its Marathi daily. says, “The regional press has always been Seconding her, KRP Reddy, vice growing, especially in the last one decade. president, marketing, at the Telugu daily It captures newer markets and penetrates Sakshi, says that the regional press is a deeper into the regions than any other better representation of the local milieu medium.” Speaking of his own daily, and is mostly the first point of reference Malayala Manorama, he says, that it has a for most of the population. Talking reach of 34 per cent in Kerala. “Compare specifically about the Telugu language this with The Times of India in Mumbai press, he adds that the local language which has a reach of just 9 per cent. No press is growing rapidly, because much English newspaper in any market can of Andhra Pradesh is semi-urban. The better our reach,” he states. average literacy rate of the state is 68 per Because of the opportunities present cent. in the smaller towns, not only are we Monica Nayyar Patnaik, managing director, Eastern Media, publisher of the Oriya daily, Sambad, adds, “The regional press cannot survive by just being a pure language daily, you have The regional press cannot survive to be future ready. You cannot ignore by just being a pure language the readers who are into English as well. daily, You have to be future ready. We need a product that is colloquial in You cannot ignore the readers who nature.” Eastern Media has two weeklies, are into English as well. We need a bilingual publication Yuva Sambad, a product that is colloquial. as well as a tabloid for children, both MONICA NAYYAR PATNAIKK targeting youngsters who speak in Oriya, Managing Director, Eastern Mediai but don’t read the language.

24 August 2013 - afaqs! Reporter I SPECIAL REPORT COMING SOON

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Contact : Anshupriya Sharma M: 8130706789 E: [email protected] SPECIAL

LOCAL TRANSFORMATION regional press, as it does the English Regional dailies across languages have dailies, some of the publishers have begun been transformed over the past decade. experimenting online, manoramaonline. Better printing technology, improved com being among the most striking of paper quality and peppy designs have them. Mobile apps are also beginning to ensured that the regional title of today make their appearance. For now, the popularity of local dailies rests on their ability to reach deep within the community and deliver targeted Industry players need to take a messages, whether for local advertisers or pragmatic approach. The Tamil national ones. newspaper industry is evolving Media players have taken to brand and will continue to develop over activation in a big way, providing the next few years with new integrated solutions to advertisers. Due players and fresh challenges. to its local nature, the regional press REGIONAL NEWSPAPERS NARESH ALAMBARA understands the pulse of the city well and COO, Daily Thanthi is preferred by brands for promotions, launches, awareness campaigns and consumer connect initiatives. By way SINCE HINDI seems to have no connection with the of example, Sakshi regularly conducts AND REGIONAL limp black and white paper of the past. education and career counselling fairs, as This has created its own challenges, well as real estate fairs. LANGUAGE however. Naresh Alambara, chief Both Hindi and regional language DAILIES ARE operating officer at the Tamil Daily dailies have a special responsibility: THE FIRST Thanthi, is of the view that since the since they are the first newspaper for the NEWSPAPER FOR print industry as a whole is undergoing overwhelming bulk of Indians, it is their a transformation, there is pressure on ability to draw them that will determine MANY INDIANS, revenues on one hand and spiralling the future of the Indian press. The fact IT IS THEIR costs on the other. “Industry players is that, across India, a large percentage of ABILITY TO DRAW need to take a pragmatic approach to people who can read, don’t, in fact, read a THEM THAT WILL containing the problem and addressing newspaper. In eight states, more than half DETERMINE THE the issue of continued growth. The the literate population does not turn the Tamil newspaper industry per say, is still pages of a daily. FUTURE OF THE evolving and will continue to develop This could be because many of them INDIAN PRESS. over the next few years, with new players cannot afford a newspaper. Or it could and fresh challenges.” There are more be that they have better ways in which than 25 Tamil newspapers (morning and to spend their money or their time. evening) catering to the needs of Tamil Whatever the reason, it is how publishers speaking audiences, across Tamil Nadu tackle the gap between the two figures and parts of Mumbai and Bangalore. which will determine the direction of the Though digital does not threaten the Indian newspaper business. „

26 August 2013 - afaqs! Reporter I SPECIAL REPORT

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SOUTH INDIA THE SOUTH SIDE STORY

With some of the most dominant players in specific markets and each language having separate leaders, South India is bound to attract much more attention from ‘national’ players in the years to come.

ith some major groups like have a very high penetration, is equally WDB Corp and Jagran Prakashan gung ho about the future. “Regional taking the IPO route to fund their newspapers will have a healthy growth growth plans, attention has admittedly provided they start getting higher rates been focused more intensely on the than what English newspapers get in prospects for the languages they have metros like Mumbai, Delhi, Bangalore a presence in. Leaving relatively less of and so on. Research is showing that the spotlight on South India, a region regional newspapers deliver better in all that could actually end up surprising on SEC segments. India’s growth has moved not just the languages front, but also for towards the non-metros,” says Jayant English language dailies. Mammen Mathew, deputy editor and The overall print industry in South director, Malayala Manorama. ON THE DIGITAL India is estimated to be `6,265 crore in FY As a group, most of South India has 2012 of which the regional print industry the added momentum of faster growth FRONT TOO, THE is estimated to be `2,970 crore. Kerala rates than the rest of the country as well SOUTHERN STARS contributes 37 per cent while Andra as a superior educational infrastructure HAVE BEEN Pradesh and Tamil Nadu contribute 26 in place. Ensuring the benefits of better MOVING QUIETLY per cent and 23 per cent respectively to literacy and faster spread of English the total regional print market in South language make a bigger impact here. TO MAKE THEIR India. To start with, even The Hindu, Categories like Auto, Banking, Education PRESENCE FELT. amongg the region’s most respected and and Aviation have already been major users of print in the region. Perhaps the only category they would still wish to see more of is FMCG, which, as Arun Anant, Regional newspapers CEO, Kasturi & Sons (publishers of will have a healthy growth The Hindu) describes it, could certainly provided they start getting hasten the process of using print more. higher rates than what English On the digital front too, the southern newspapers get in metros. stars have been moving quietly to make JAYANT MAMMEN MATHEWW their presence felt. While Malayala Deputy Editor and Director, Manorama group has tied up with Yahoo Malayala Manorama to create a Malayalam news portal, key leaders across states have established a digital presence with an aim to monetise established groups has made its intention them effectively. The advantage of a Source: Deloitte Touche clear to launch a Tamil daily soon. strong Indian expats audience in the Tohmatsu India’s Another strong regional leader, the middle east and other regions is an Media & Entertainment in East India- Bengal, Malayala Manorama group in Kerela, advantage allowing better realisations for A vibrant way forward. where the Malayalam language dailies online inventory. „

28 August 2013 - afaqs! Reporter I SPECIAL REPORT

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DAILIES IN BENGAL SHAKEN AND STIRRED IN BENGAL The West Bengal market, like Kerela is dominated by language dailies, and the prognosis is more of the same. While recent political events have made it a volatile market for some, at its core, this remains one of the strongest print markets in the country.

est Bengal has for long been to English at many levels and English Wa regional daily stronghold. Not language newspapers have managed to only have they shaped the thinking of the be a second newspaper in households, general population but, like Kerela, also especially in Kolkata. However, West become an integral part of all classes of Bengal remains one of the few markets the society. Newspaper consumption is a where English dailies do not command matter of pride for most Bengalis, putting a premium over language publications, the better print players in that market on especially the leading ones from ABP a very secure footing. Group. In such a steady market, the biggest The print media in West Bengal is change recently has been the attempt to estimated to be `980 crore out of which, shift focus towards the youth readership, the regional print has a share of `600 which has emerged as a large and crucial crore (annual growth rate of 10 per cent). segment for growth as well as advertising However, the English print media stands support. The perception that only a at about `380 crore (annual growth rate small fraction of the readers between the of 9 per cent). The total print market in age brackets of 15 to 35 years can read West Bengal is expected to cross `1,450 Bengali has led to innovations around crore by 2016. content and packaging. Both ABP and Even luxury brands, which have have launched youth long avoided the regional media, have focused Bengali dailies, E Bela and Ei realised its exceptional reach in their BOTH ABP AND Samay respectively in the past two years. target segments and have started using THE TIMES Currently, the penetration of Bengali it to communicate with their potential dailies amongst the SEC A population customers. Unlike most regional dailies GROUP HAVE aged less than 30 years is higher than who get majority of their advertising LAUNCHED that of English dailies in West Bengal. revenue from local brands, Bengali dailies YOUTH FOCUSED This disparity is evident even in the get larger chunks of advertising from BENGALI population aged above 30 years. national brands than the local brands. In past few years, and especially after A large amount of advertisements in DAILIES, E BELA the Times of India’s entry into Kolkata in regional language dailies is come financial AND EI SAMAY 2000, readers have gradually been exposed institutions. „ RESPECTIVELY

IN THE PAST TWO Source: Deloitte Touche Tohmatsu India’s Media & Entertainment in YEARS. South India, Promising signs ahead.

30 August 2013 - afaqs! Reporter I SPECIAL REPORT

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BATTLEGROUND MAHARASHTRA GROWTH YEARS The market for Marathi dailies is an active battleground for the major players. With a slew of new editions and launches, it is set to enter a period of sustained growth. By Kajal Malik

THE BIG DEBUTANTS expanding the market in its key launch editions and making LAUNCH EDITIONS (IN ORDER OF LAUNCH) a strong success in Pune market.Their Maharsahtra Times Jan-11 Pune, Nasik, Aurangabad, Nagpur, entry seems to have clearly impacted the (beyond Mumbai) Kohlapur (launching in Nagar and Jalgaon soon) leader - Lokmat where a significant drop Divya Marathi May-11 Aurangabad, Nasik, Jalgaon, Nagar, in readers in visible. Sakal on the other Solapur, Akola (launching in Amravati hand continues to grow while closing the soon) gap in circulation with Lokmat. aharashtra has always been Ma P1 market for a large set of BIGGER advertisers with an interest in Mumbai Maharashtra print pie is almost as well as Rest Of Maharashtra (ROM). the largest amongst the other regions However what makes it a delight is the (English and Marathi) and within opening up of this market with newer regional print pie, it continues to attract and bigger opportunities through the higher revenue shares. With two national large print groups in this market. players entering and TOI expanding into newer regions (Kohlapur being NEW this year), the pie should see some Two of the largest print titles increase in an already strong market. Maharashtra Times and Divya Marathi This coupled with the fact that some of are expanding in the state and soon the larger print groups have embarked shall offer the key markets coverage. on large initiatives in Maharashtra, it Within a span of two years, both have should evoke higher interest from the gained a strong entry with Divya Marathi market and advertisers. „

MARATHI DAILIES – IRS SNAPSHOT ABSOLUTE 2012 Q2 2012 Q3 2012 Q4 CHANGE % CHANGE (Q3 VS Q4) (Q3 VS Q4) Daily Deshdoot 126000 113000 124000 11000 9.7 KAJAL MALIK Daily Sakal 4437000 4403000 4469000 66000 1.5 Media Consultant Deshonatti 741000 736000 713000 -23000 -3.1 Divya Marathi 695000 924000 1024000 100000 10.8 Lokmat 7505000 7409000 7313000 -96000 -1.3 Loksatta 956000 955000 912000 -43000 -4.5 Maharashtra Times 1499000 1597000 1711000 114000 7.1 Pudhari 2604000 2477000 2374000 -103000 -4.2 Punya Nagari 1772000 1740000 1681000 -59000 -3.4 Tarun Bharat 873000 818000 750000 -68000 -8.3 All Readers: Maharashtra, Source: IRS 2012 Q4

32 August 2013 - afaqs! Reporter I SPECIAL REPORT

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RTSP EXPE EAK

Regional dailies do Regional papers will continue to definitely have a lot of outpace English in the foreseeable potential. But they are unclear future. However, as a Group, we are as to how to tap it. language-agnostic and have launched highly successful publications in Gujarati & Marathi as well. MURALIDHARAN Director, HAMMER

PRADEEP DWIVEDI Chief Corporate Sales & Marketing Officer, Dainik Bhaskar Group The main growth driver for print in our region can be real estate, education, electronics and – because of the coming elections - political advertising. But I see a problem In Bengal, people cannot be seen in consumer durables and auto without an Anandabazar Patrika, advertising, as they are affected by for example. In other markets, the the depreciating value of the rupee readership trend will continue to and changes in the RBI policies. be what it is or reduce because of media fragmentation and little time to read.

ARUN ANANT CEO, Kasturi & Sons

ANILKUMAR SATHIRAJU AVP & Head South, DDBMudra Max

Languages have had a good run over the last decade or so, as the market was driven by rising urbanisation, literacy on one hand and by the creation of better products, wider distribution, localisation of content, aggressive marketing, on the other.

BASANT RATHORE VP - Strategy, Business Development & Brand, Jagran Prakashan Ltd

34 August 2013 - afaqs! Reporter I SPECIAL REPORT