Media Economics & Global Marketplace
Media Economics & Global Marketplace
Common structures
Monopoly - a single firm dominates production and distribution, either nationally or locally.
Eg: a city with one newspaper or tv station. More prevalent at the local level.
Oligopoly - just a few firms dominate the industry. e.g. film industry--film studios.
Limited competition - aka monopolistic competition - a media market with many producers and sellers but only a few differentiable products within a category. For example, radio stations: there are various independently owned radio channels in India; however, most of these stations feature a limited number of formats, such as latest Bollywood songs, oldies, gags and similar content.
Revenue Generation
Direct payment - media products supported primarily by consumers who pay directly for the product. Consumers communicate their preferences immediately
Indirect payment - media products supported primarily by advertisers, who pay for the quantity or quality of audience members that a particular medium delivers. The client is the advertiser, not the end user.
Media spend in India as a percent of GDP is 0.41%, which is much lesser than the world’s average of 0.80%. This indicates the potential for growth in spends as the industry in India matures.
The overall M&E industry size grew from Rs 579 billion in 2008 to Rs 587 billion at a rate of 1.4% percent. The growth rate is expected to increase to 11.2% in 2010, as the industry witnesses a recovery. TV and Print are the largest sectors of the industry contributing to greater than 70% of the revenues.
Traditionally, advertising revenues have had a strong hold in the M&E industry, but increasingly, subscription revenues are becoming important with consumers paying for media services. The media business models in India are undergoing a change with audiences becoming more willing to pay for content and value added services. The growth in ticket prices of movies at multiplexes,
Common structures
Monopoly - a single firm dominates production and distribution, either nationally or locally.
Eg: a city with one newspaper or tv station. More prevalent at the local level.
Oligopoly - just a few firms dominate the industry. e.g. film industry--film studios.
Limited competition - aka monopolistic competition - a media market with many producers and sellers but only a few differentiable products within a category. For example, radio stations: there are various independently owned radio channels in India; however, most of these stations feature a limited number of formats, such as latest Bollywood songs, oldies, gags and similar content.
Revenue Generation
Direct payment - media products supported primarily by consumers who pay directly for the product. Consumers communicate their preferences immediately
Indirect payment - media products supported primarily by advertisers, who pay for the quantity or quality of audience members that a particular medium delivers. The client is the advertiser, not the end user.
Media spend in India as a percent of GDP is 0.41%, which is much lesser than the world’s average of 0.80%. This indicates the potential for growth in spends as the industry in India matures.
The overall M&E industry size grew from Rs 579 billion in 2008 to Rs 587 billion at a rate of 1.4% percent. The growth rate is expected to increase to 11.2% in 2010, as the industry witnesses a recovery. TV and Print are the largest sectors of the industry contributing to greater than 70% of the revenues.
Traditionally, advertising revenues have had a strong hold in the M&E industry, but increasingly, subscription revenues are becoming important with consumers paying for media services. The media business models in India are undergoing a change with audiences becoming more willing to pay for content and value added services. The growth in ticket prices of movies at multiplexes,