Media: A Good Year
The Indian media majors have many reasons to label 2017 as a year of positive growth. Despite the twin blows of demonetisation and GST, the media sector was able to bounce back and register great numbers in its favour. From television to print to digital, media across sectors have witnessed phenomenal growth.
If we look at the recent Indian Readership Survey (IRS) 2017 data, there is reason for the industry to celebrate. With the overall print readership growing by 9 per cent, the Hindi daily readership alone has grown by 45 per cent while the magazine readership has grown by 75 per cent.
It’s not just the print industry that is witnessing significant growth, the overall media and entertainment sector in India is slated to grow at 10.55 per cent per annum according to estimates.
The Biggest Gainers
Among the biggest gainers in 2017, Kalanithi Maran’s Sun Group tops the list. Sun Group consists of 33 television channels, 45 FM radio stations, two daily newspapers, five magazines and an IPL franchise. It also has one of the largest DTH services in India. Under the leadership of Kalanithi Murasoli Maran, who is the chairman and managing director of Sun Group, the company gained 116 per cent in net worth with net revenue growing from Rs 16,228 crore in 2016 to Rs 35,892 crore in 2017.
Another big gainer in 2017 was The India Today Group that has interests in magazines, newspapers, TV and digital. The group witnessed an impressive 64 per cent growth in its net revenue which stood at Rs 1,472 crore compared to Rs 897 crore in 2016.
Interestingly, both the top net revenue gainers in 2017 have significant investments in television. It must be mentioned that television is witnessing continued growth on the back of growing ad spends, which crossed $9,300 million in 2017 and is expected to reach $10,500 million in 2018.
Among print players, HT Media was the biggest gainer with 18 per cent jump in net revenue. The company’s net revenue stood at Rs 3,118 crore in 2017 compared to Rs 2,632 crore in 2016. In recent years, under the leadership of Shobhana Bhartia, who is the chairperson and editorial director of HT Media, the company has made some major investments to tackle the onslaught of growing competition from online platforms. Even the recent IRS data ranks Hindustan Times as the second most read English daily with a total readership of 68,47,000, something which will help the brand maintain its leadership position in the coming time.
It is not just TV and print that dominate the list of top wealth gainers in 2017, the entry of Ajay Bijli, chairman and managing director of PVR, shows the growing clout of the entertainment business. Bijli is credited for revolutionising the film exhibition business with his chain of multiplexes across the country. In 2017, the company’s net revenue witnessed 17 per cent dip closing at Rs 1,343 crore compared to Rs 1,360 crore in 2016.
The other names from the entertainment domain that are among India’s biggest revenue gainers include Sameer Manchanda’s DEN Networks, which witnessed net revenue growth of 63 per cent. In 2017, DEN Network’s revenue rose from Rs 480 crore to Rs 784 crore. Talking about entertainment sector, Shemaroo Entertainment, which is an integrated media content house with activities across content acquisition, value addition, content creation and distribution, gained 8 per cent in net revenue which stood at Rs 754 crore in 2017 compared to Rs 699 crore in 2016.
Similarly, Kishore Lulla’s Eros International, which is into film production and distribution, witnessed 22 per cent growth in revenue in 2017 which rose to Rs 1,383 crore in 2017 from Rs 1,131 crore in 2016.
The Surprises
Year 2017 had its share of surprises too. For example Bennett Coleman & Co, the publishers of India’s most read English daily — The Times of India — recorded negative growth in net revenue in 2017. The company net revenue fell 6 per cent to Rs 2,593 crore from Rs 2,769 crore in 2016.
Another big surprise was Dainik Bhaskar’s 1 per cent net revenue growth despite being one of the biggest publications in the country. The fourth largest daily with a total readership of 4,51,05,000 according to IRS 2017 data, Dainik Bhaskar’s revenue rose to Rs 4,634 crore in 2017 from Rs 4,601 crore in 2016.
Looking at the numbers above, clearly the mega rich in 2017, have been on expected lines. The numbers also show that traditional players are not just standing their ground but also witnessing possitive growth despite competition from new media platforms and the trend is likely to continue in 2018.
