Understanding media industry: A detailed analysis of Bennett, Coleman & Company Ltd.

Abstract

In August 2011, Bennett Coleman & Company Ltd. was inundated with reports about its Medianet service. Being a print media company predominantly, the questions raised about the credibility of the news published in their newspapers were a big blow to their brand name in the media and advertising circles. This was a cause for concern and could potentially mean the doom of BCCL’s print business. Moreover, advertising is one of the major sources of revenue for the company. The controversies could erode this source of revenue if not addressed appropriately. Bennett Coleman & Company Ltd. is India’s largest media conglomerate with revenue of over US$ 1 billion in FY 2009. Currently headed by Sameer, Vineet and Indu Jain, the company has an impressive portfolio encompassing films, television, magazines, radio, cable programming, newspapers, books and websites. As of July 2011, the company had eleven publishing centres, fifty-five sales offices, fifteen printing centres, over 7000 employees, five dailies, including two of the largest in the country, twenty-nine niche magazines reaching 2468 cities and towns, two lead magazines, thirty-two radio stations, one television life style channel and two television news channels . The group’s leadership position is now threatened by the ensuing controversies about its paid news services. Moreover Indian media industry trends show that the industry is undergoing massive changes due to changes in consumer preferences. The question now is if BCCL has what it takes to handle the controversies surrounding it while adapting to the changing trends in the industry.