Globalization of Indian television industry: A strategy perspective

Abstract

Television Industry with a size of INR 257 billion in 2009 is the largest segment of the Indian Media and Entertainment Industryi . Globalization of the Indian television and the resultant expansion of Western transnational media empires have completely transformed television broadcasting in India over the past 20 years. An exponential growth in the number of television channels from one state-controlled channel in 1991 to over 500ii in 2011 has profoundly altered the Indian electronic-media landscape. The Indian media market has become exceptionally attractive for US-dominated transnational broadcasters, thanks to India’s fast growing economy, a vastly expanding middle class (differently estimated to be between 200 to 300 million) with growing aspirations to American lifestyle, and an emergent advertising sector. The huge numbers of potential consumers provide transnational media corporations with unrivalled opportunities. India is one of the fastest growing and potentially one of the biggest English language media markets in the world. An established satellite network provides cheaper and quicker nationwide coverage of broadcasting in a continental-size country, while the diversity of cultures in India means that demand for a wide array of satellite channels, catering to different languages and tastes, is even stronger than in Europe or the USA. The industry has seen rapid transformation and the current penetration of ~50% is expected to grow further. As a result of the opening up, Indian Television industry is increasingly getting competitive with the entry of new players, foreign investments and expansion by current players. The gamut of relationships with the production houses, distributors, advertisers and viewers demands a very well thought of and executed competitive strategy. Through this CCS project we studied the opportunities and challenges faced by the industry in the global arena. We began the CCS by studying the architecture of television industry in India. The secondary data was collected for other broadcasting companies. After collection of the data, industry analysis as well as the feasibility of players success has been analyzed along with the application of various strategy models. The CCS report has elucidated the various aspects of the strategic management in the Indian Television Industry, especially in the changing circumstances, and has successfully illustrated the strategies that new entrants have followed and may follow in order to create and sustain a competitive edge over the other players in the arena.