Thursday, September 3, 2009

Indian media Vs China--the winning edge

It's advantage India all the way when it comes to attracting investors in the media.
There are three main reasons for this which we shall deliberate upon:
The Indian Democracy :
The fact that India is the world's largest secular democracy gives its people the right to read, write, publish, make watch listen to whatever they want. It gives investors arangeof options and the market a depth unlike other Asian markets. The biggest contender for this top post, China, loses out largely because of its closed governance and state-owned enterprise. In print as in TV most investors have to make do with joint ventures with state-owned enterprises. SO far China has seen very little strategic investment and almost nothing in content. A Balaji or UTV kind of listing is unthinkable vis a vis China.As an indication of the yawning demand-supply gap one fact suffices: For every ten hours of programming required of Chinese films or TV, only one hour is available. Therefore all investment made by media companies in infrastructure is lying unutilised. Political stability has also helped rake in investment to India.
Language:
India has a large population of young urban professionals fluent in English. This, when compared with other South Asian nations is what gives India the cutting edge. It makes it all the more easier for western media professionals to interact and understand Indian counterparts as compared to other countries like Thailand, China, Indonesia etc.
Globalisation & Liberalisation.
The M&E liberalisation in 2003 ushered a new era. This freed publishing to get institutional finance, seek FDI (Foreign Direct Investment) and resulted in DTH licences being issued. Film companies have now been professionalising for over 5 yrs now and publishers expanding all over the country entering regional markets. Broadcasters have ore options like DTH and Broadband to sell television rights and radio is finally free of licencing fees.
The scope this has opened is tremendous. At Rs 420 odd billion or over $ 9 billion the Indian market is but a tiny fraction pf its global counterpart that is set to touch $ 1375 billion in 2005 . However within Asia Pacific, India is one of the fastest growing media markets.

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