I believe an innovation-driven corporate culture fosters sustainable growth in today'sday and age. Because of our constant endeavor to break new ground we have become wellknown as a media innovator and pioneer.
A case in point was ourforay into the then unknown arena of Public EntertainmentSystems. We launched India's first Live Transit TV channel called WISE TV currentlyoperational in 2000 GSRTC (Gujarat State Road Transport Corporation) buses plying acrossGujarat and into parts of Maharashtra and Rajasthan carrying an estimated audience of 9lacs per day. This is one of the highest figures for any live terrestrial television. Ourregional news TV channel VTV News is the first Gujarati channel to start broadcasting anHD signal.
A recent top-line diversification move was to get into an IVT (Integrated VehicleTracking) and PIS (Passenger Information System) for GSRTC buses. Using vehicle-trackingtechnology the system updates passengers about GSRTC bus arrivals and departures.
I also feel variety is the spice of sustainable growth. The logic is that if growthgets squeezed in certain areas it is sure to be compensated by an expansion in otherareas. We have a diverse top-line ranging from a daily tabloid and a weekly magazine inprint media to a news TV channel and a Transit TV system in Audio-Visual media to anews information entertainment and gaming portal as well as social media activities innew media and to a public vehicle tracking and information display system. All our mediaassets are in the top league in their respective fields.
Of course cost efficiency is a very important driver of sustainable growth. Towardsthis end we have streamlined operations and upgraded machinery.
By its very definition sustainable growth implies looking ahead. We plan to leverageour existing top-lines like WISE TV and Passenger Information Systems to corner projectsin other states. We are also thinking of adding other media assets like FM Radio to ourportfolio.
With such fundamentals in place we are sure to take off into higher orbits in thefuture.
The Indian Media and Entertainment (M&E) industry is a sunrise sector for theeconomy and is making high growth strides. Proving its resilience to the world the IndianM&E industry is on the cusp of a strong phase of growth backed by rising consumerdemand and improving advertising revenues. The industry has been largely driven byincreasing digitization and higher internet usage over the last decade. Internet hasalmost become a mainstream media for entertainment for most of the people. In 2015 theoverall M&E industry grew 11.7 per cent over 2014. The largest segment India'stelevision industry is expected to maintain its strong growth momentum led bysubscription revenues representing a year-on-year growth of about 13.2 per cent.
The Government of India has supported M&E industry's growth by taking variousinitiatives such as digitizing the cable distribution sector to attract greaterinstitutional funding increasing FDI limit from 74 per cent to 100 per cent in cable andDTH satellite platforms. The Union Budget 2016-17 has proposed basic custom duty exemptionon newsprint. The customs duty on wood in chips or particles for manufacture of paperpaperboard and newsprint has been reduced to 0 per cent from 5 per cent.
Television is one of the major mass media of India and is a huge industry and hasthousands of programs in all the states of India. Today India boasts of being the thirdlargest television market in the world. The year 2015 saw several new channel launches andthe industry's adoption of a brand new ratings system - Broadcast Audience ResearchCouncil (BARC). The television industry in India is expected to grow at 15.5 per cent in2019. Subscription revenue growth at an annualised growth rate of 16 per cent is expectedto outpace the advertising revenue annualised revenue growth of 14 per cent on account ofimproving monetisation due to digitisation.
Digital Media advertising continues to grow at a faster rate than any other advertisingcategory. The growth in internet penetration is driven high by the adoption of internet inthe rural areas whose first experience with the internet could come through mobilephones. Eyeballs that earlier used to be captivated by TV print and other traditionalmedia are now moving to mobile channels. Availability of affordable smartphones andtablets has fuelled the 'second screen' phenomenon that cannot be ignored by contentcreators curators and advertisers alike. The advent of 4G services healthy growth in thenumber of 3G subscribers continued adoption of 2G by the masses in the hinterlands andconcerted efforts by various digital ecosystem players under the 'Digital India'initiative have played a major role in making this growth possible.
As consumption of news shifted to digital platforms online news category has seenrapid growth with reach of online news among internet users in India. So far online newshas taken share from print media largely but going forward its impact on the TV newsbusinesses cannot be ignored.
Today the FM radio sector in India has come a long way and the road ahead is equallyexciting. Going by the numbers the entire industry is registering over 12-15 per cent YoYgrowth. The radio industry has been growing at a compounded annual growth rate (CAGR) of18 per cent. Also according to the media and entertainment industry report 2015presented by the Federation of Indian Chambers of Commerce and Industry and KPMG theradio industry is expected to touch revenue of Rs.3950 crore in 2019.
According to findings of the report from consumption mode standpoint mobile phones(71%) topped the chart and was followed by radio sets (53%) and then web (21%).