This report of the Indian newspaper industry analyses English, Hindi and regional newspaper publishing and identifies the - promise and challenge ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
This report of the Indian newspaper industry
analyses English, Hindi and regional
newspaper publishing and identifies the
promise and challenge each faces.
contentS
special
contents
Industry Report
EMERGING STILL 6
While the developed world is gloomy about the
newspaper business, it is flourishing in India.
English Newspapers
mind the 10
language
As the growth of English dailies
slows down, they will have to work
harder to get ahead.
guest article
Amit Ray 13
To be in the game, you have to be
the game changer.
Hindi Newspapers
Flexing 14
their Muscles
Hindi newspapers’ great run
will continue as they come up
with newer innovations.
Regional
Newspapers
Coming of Age 22
The direction the industry will take
depends on how regional media builds
on its success.
By
Sumantha Rathore
Cover Illustration
Tiffin Box
Design
Vinay Dominic
August 2013 R afaqs! Reporter i Special Report
5
special
ENGLISH HAS TRADITIONALLY BEEN THE MOST PROFITABLE SEGMENT.
tiffin box
NOW, LIKE AN ICEBERG EMERGING FROM THE DEEP, HINDI BUSINESSES HAVE
BUILT SCALE. THE FULL POTENTIAL OF REGIONAL LANGUAGE DAILIES,
THOUGH, HAS STILL TO BE SEEN.
6 August 2013 R afaqs! Reporter i Special Report
Industry Report
EMERGING STILL
While print dailies are struggling in much
of the world, they are booming here.
There are some peculiarly Indian reasons
for this.
I t is like the case of the distant
cousin who has fallen on bad times.
Ought that to become a reflection on
the state of one’s own finances? Not fair,
is it?
That’s pretty much what has happened
to the Indian newspaper business. For the
past decade and more, the international
media has been flooded with gloomy
prognosis about where print is heading.
And quite rightly so, because advertising
revenue in print in the US has declined
precipitously since 2000. Since Indians
are clued into Western trends because of
about 90 per the English connection, it has naturally
cent of print been assumed by many that the same
readers in fate applies here. The most influenced
India consume by this have been the young adults from
content in the metros, many of whom do indeed get
sushil kumar
their news online. bias exists is simply because of language.
Hindi and They take their cue from senior digital The vanguard of the online movement
regional experts who, with the zeal of the new has been led by people comfortable with
languages. convert, can be insular and dismiss other English and because they see everybody
media out of hand. To their mind, the they know online, they assume that this is
fact that online is growing confirms that true for the rest of India. It isn’t, not yet.
all other media is dying, especially print. The vast bulk of the print readers in
In India, certainly, this is far from being India, about 90 per cent, in fact, consume
the truth. Unlike the West, in India all their content in Hindi and regional
media is growing, including print which languages. And relatively few of them
is, in fact, doing extremely well barring have gone online for a variety of reasons.
the odd blip. Some tech issues plus the relative lack of
Over the last five years, advertising in variety in content compared to English,
print has been growing at a compounded has inhibited the growth of online.
annual growth rate of about 9 per cent. Votaries of online are apt to wag a
According to KPMG, an international finger and underline how the internet-
consultancy, this is the rate that will be enabled mobile phones will change the
maintained for the next five years as well. game for Hindi and regional newspapers.
One of the reasons why the online However, on evidence so far, Indian
August 2013 R afaqs! Reporter i Special Report
7
special
users depend on their phone to provide are two other factors that protect Indian
them entertainment – video, music – print against the much-anticipated digital
rather than news. onslaught. Neither gets the importance
Industry Report
India is not the only country in the they deserve when futurologists predict
world where newspaper readership the early demise of dailies.
is growing. Two other such major First, newspapers are priced low in
The markets are China and Brazil and both, India relative to most other countries.
popularity incidentally, are several years ahead of This has been true for English dailies
of local India on the economic development for years but less so for regional and
curve. China’s internet penetration is Hindi titles, which were priced higher
languages is about four times higher than India’s, for fewer pages. As the competition has
the reason which is what makes its affection for print become fierce, non-English dailies have
why print is all the more remarkable. This emphasises been keeping their prices down, too.
less affected that India has a thriving newspaper While it is easy to think of online
business not just because it is poor. as ‘free’, that’s a misnomer. Content is
by online in The popularity of local languages is free but access is not. Certainly when it
India, than the first reason why print is less affected comes to accessing news and features,
elsewhere by online in India, than elsewhere. There a newspaper for `100-150 per month
is still the most cost-effective way to
consume news through the written word.
sushil kumar
Also, a newspaper is shared in a way a
screen can’t be.
The other, equally unappreciated
aspect of newspaper logistics is that a
newspaper is dropped at a reader’s home
at the crack of dawn. This is a privilege
not available in many places in the West,
because the labour cost of delivering
the title is prohibitive. In India, the
abundance of hands allows this, although
the hawker gets a share of a cover price
which is low.
This survey looks at English, Hindi
and regional newspaper publishing and
identifies the promise and challenge that
each faces. n
8 August 2013 R afaqs! Reporter i Special Report
DIGITAL MADE SIMPLE
special
ENGLISH newspapers
Mind the language.
there are others
For a long time, English was the only worthwhile game among dailies.
Now, as the markets move to smaller towns, publishers have to adapt.
And then there is digital to worry about.
W hat a difference a decade can
make. Ten years ago, English
was the only place to be in the Indian
Nothing exemplified the promise of
riches better than The Times of India,
Mumbai. Within the print business it
newspaper business. There were large wasn’t considered an edition: it was
newspapers in other languages too but viewed as a press that printed money
they lacked in pages, confidence and for its owner, Bennett Coleman & Co
profit. They were, in every sense, the Ltd (BCCL). It was rated as unassailable,
English daily’s country cousins. The which is why, for years, nobody dared
big game was in the metros where the challenge its monopoly in Mumbai.
markets and the money lay. No wonder, Finally, the temptation got too great.
publishers of other dailies railed against Hindustan Times, from Delhi, set foot in
what they believed was the natural bias of the city. But more dramatically, the Zee
western-oriented media planners towards group and Dainik Bhaskar formed a joint
English. venture to launch DNA, which tried to
take on The Times of India in its lair in
2005. (Bhaskar has since sold its stake in
the daily to its partner).
English print media still enjoys the Eight years later, The Times still
same clout. The rate of growth makes more money from its Mumbai
has come down a bit but it has to edition than any other paper in India,
do with the slow economic growth but everything else has changed. The
and not because advertisers prefer fascination with both English and metros
other languages or mediums. is past its peak and there are many who
Ravi Dhariwal wonder if the best of the English press is
CEO, BCCL already behind it.
Ravi Dhariwal, CEO, BCCL, doesn’t
English dailies balanced cocktail
tend to be hit (Advertising revenue by language over the years, in Rs billion)
harder in a 2009 2010 2011 2012 2013* 2014* 2015* 2016* 2017*
English 49 53 57 59 62 66 70 74 79
slowdown, in Hindi 31 37 41 45 49 56 64 73 83
part because Regional 30 36 42 46 51 57 66 75 85
they thrive in Total 110 126 140 150 162 179 200 222 247
the metros. Source: KPMG in India analysis, Industry discussions conducted by KPMG in India *Provisional
10 August 2013 R afaqs! Reporter i Special Report
think so. He contends, “The English should ready themselves for the digital
print media still enjoys the same clout. era, but, as anyone familiar with the
However, the rate of growth has come experience of news online knows, this is
down a bit but that has to do with the easier said than done. Advertising online
slow economic growth and not because is extremely purchase-intent oriented
advertisers prefer other languages or and people seeking news are generally
other mediums.” not in the frame of mind to shop, as they
English dailies tend to be hit harder in might be on, say, a portal specialising
a slowdown, in part, because they thrive in automobiles. Besides, with Google
in the metros which feel the effects of
an economic reverse the most. Last year,
sushil kumar
as the economy slowed down, dailies
in other languages continued to grow
ad revenue by about 10 per cent – for More than anything else,
English, though, the figure was down to the segments themselves
3.5 per cent. have evolved in the last few
The English press is still remarkably years. Categories like
well placed: though it has only about a classified ads have taken a
tenth of the total average issue readership, different route altogether.
it takes in about 40 per cent of the RS Suriyanarayanan
advertising revenue that print attracts. It Business Director, LMG
has indeed been a golden age for English
newspapers. Will digital come along to
spoil the party? dominating the advertising scene in India Over the past
in a way it does in few markets elsewhere,
staying alert ad rates are abysmal.
decade, the
There is no doubt that English newspapers Debu Mishra, an independent media combined
are threatened by the rise of digital more consultant, says that the threat is in the circulation of
than dailies in any other language. It is metros and mini-metros. Digital still English dailies
the privileged English speakers who have has a long way to go, he thinks, but the has gone up
been the first to go online. Equally, it growing popularity of mobile news apps is
is English that unlocks the vast treasure what perturbs him. “English dailies have by over 50
of content on the internet – though, to constantly upgrade their offerings, in per cent, but
admittedly, video knows no language. terms of content, quality, packaging and readership has
The 125 million Indians online are also sales promotions and make the product grown only in
the ones most likely to move to mobile more interactive,” he thinks.
devices and gather information there. There is some consolation, though,
single
There is one major warning sign that for Indians going online news is not figures.
about English’s apparent inability to such a priority. According to a survey
ENGLISH Newspapers
grow further. Over the past decade, the last year, only about one in three Indians
combined circulation of English dailies online has ever visited a newspaper site
has gone up by over 50 per cent, but – and only one in 10 visits such a site
readership has grown only in single daily. Clearly, they have other things to
figures. In other words, people are do online. Such a low interest in news
sharing their dailies less than before – online would be alarming in the long run
and new converts are harder to find. This but, in the short run, it assures publishers
suggests that Indians who do pick up the that Indians still depend on print or
reading habit, stick to the local language television to catch the latest.
in which they are most comfortable, If the impact of digital on reading
instead of moving on to English. habits is one worry, the other is its impact
It is convenient to say that publishers on advertising, especially on classifieds,
August 2013 R afaqs! Reporter i Special Report
11
special
In keeping with the most lucrative category of them all. (magicbricks.com) and matrimonials
Publishers love those little ads, because (simplymarry.com). Its record has been
the movement customers walk in so the cost of sales is mixed.
ENGLISH Newspapers
of consumer low. Second, it ties the local community Hindustan Times, meanwhile, has
markets, to the paper. That’s changed dramatically put its considerable backing behind its
English dailies in the past decade, especially in the own job portal, shine.com, recently
English press. introducing a social networking aspect to
have been Two fifths of classifieds have moved distinguish it from the competition.
gradually online, but the pace of migration is The advertising category least affected
pushing into slowing down. If it does, it will provide by the digital boom is government
smaller much needed relief. “More than anything advertising, which has largely limited
else, the segments themselves have itself to print. Television and radio are
towns. evolved in the last few years. These rarely used by this lot of advertisers and
turning to online is still a long way off
for them.
sushil kumar
follow the youth
Digital still has a long way to go. The most worrying segment for
English dailies have to constantly publishers of English dailies is young
upgrade their offerings-in terms of adults, who are most likely to go off print.
content, quality, packaging, sales Several publishers have launched tabloid-
promotions-and make the product format dailies aimed at this demographic,
more interactive. but the young have proved elusive.
Debu Mishra
Media Consultant
The silver lining
In keeping with the movement of
consumer markets, English dailies have
categories have taken a different route been gradually pushing into smaller
altogether,” says RS Suriyanarayanan, towns.
business director, LMG. The Times of India has entered Tamil
Many English language print players Nadu and Kerala, whereas Hindustan
gauged this imminent shift and started Times is fortifying its presence outside
building their own online properties for Delhi and has launched an edition aimed
classifieds. The front runner has been at Bhopal and Indore. Meanwhile, The
Times Internet, which put its might Hindu is strengthening its foothold in
behind jobs (timesjobs.com), real estate the North. n
12 August 2013 R afaqs! Reporter i Special Reportguest article
Amit Ray
“work together”
T o be in the game, you have to be
the game changer. No newspaper
can sustain the bad weather by
the new age media owners were born
against a strong headwind. Some
of the print publishers do dare the
just being there. It has to fight, get headwind to win, but, at other times,
hurt, again fight back, reinvent and it’s just a case of reinventing the old.
re-model the business. One way of tackling a headwind which created this research.
Newspapers are not FMCGs but is to create one’s own long-term While the industry does not need
are the voice of the people. While tailwind. An initiative of this kind an alternative to IRS, what it does
industrywallas can wish the issue should be at an industry level, need is a more thought-through
away by saying it’s a habit, in reality rather than an organisational level. currency. While it is impossible to
it’s much more than that. Let’s take the most widely spoken replicate TV measurement, which
When an industry faces strong language, Hindi. Between 2003-2012, is time-weighed, other options do
headwinds, stakeholders unite the population has grown and so has exist. I would have liked a multi-
and fight the crises. Unfortunately, literacy, but the gap between “can dimensional value currency and stop
there is no unified thinking amongst read Hindi’ and “do read Hindi” has the ease of access, which leads to
newspapers. Though there are remained the same. There is a need the creation of a scorecard without a
platforms for unification, they are to drive this ratio. context. Let me explain.
used for arbitration and lobbying, not In an analogical sense, Pratham, Print is a single matrix medium
business ideation. a UNICEF-promoted organisation (Average Issue Readership or AIR]
Before independence, with its simple philosophy, ‘learn to and, to top it, it is easily available or
newspapers were meant to talk read & read to learn’, is changing the calculable as a cross tab. If cross tab
about people and raise issues. But school dropout rates in Maharashtra. is allowed only for Total Readership
(in today’s parlance), while they I am sure that if the Hindi publishing (the full-blown strength of the
did deliver content, the words had industry had articulated this as a medium) and people are made to
a strong consumer-to-consumer collective problem coming in the work to calculate AIR, the perception
bonding. You could call it patriotism. way of growth, someone could have that print is consistently going down,
I have known a few print owners attempted a solution. will reduce significantly. Print owners
who strongly believed in the power Digital is one domain which can can also engage agencies and clients
of raising issues, and trust me, their get newspapers the push. The sooner in a more meaningful way.
business is quite healthy. If you they embrace it wholeheartedly, the Clients look at only AIR and
short-change on the basic premise, better it will be for everyone. Divya decide about a publication’s inclusion
bad times will catch up. Bhaskar Gujarati is a classic example and the price to pay. They never
of this. It has left its competitors reflect on what a paper does to a
Turbulent times behind in the online race. And reader, first thing in the morning, or
Today, no business in India in India people who understand the Gujarat the level of engagement that an edit-
can afford to relax. In a funny way, landscape will know what it takes to wrapped environment creates, and
it’s survival by suicide. Look at be there. not just for a commercial message.
Colgate: though it dominates the If access to AIR is made less easy,
huge “morning ritual” category, it is single currency a lot of loose comments about print
always on its toes, always restless, I have given 14 years of voluntary will cease. n
never satisfied. Many print owners service to better the IRS. I was the
believe they were born with a golden Joint Chairman of MRUC (Market (Amit Ray is Founder Partner at
spoon in their mouth, whereas a lot of Research Users Council), the body Media First, a consultancy.)
August 2013 R afaqs! Reporter i Special Report
13special
Hindi Newspapers
sushil kumar
split run
Hindi dailies have been in a race to (Average issue readership vs
expand their network of editions and draw revenue, in per cent)
2012
in the national advertiser. Language
AIR Split Revenue Split
English 10 39
Hindi 36 30
W ay back in 1995, Dainik Bhaskar
took the bold step of looking
beyond its home turf of Madhya Pradesh.
Regional 54
Source: IRS Q3, KPMG in India analysis
31
The newspaper was the first Hindi daily competition head-on elsewhere is an old
to launch an edition outside its home story. But all that aggression has been
state, when it entered Jaipur, Rajasthan, fantastic for the Hindi press. It has forced
and shook the established order. innovation that was unimaginable two
Today, Hindi dailies moving out decades ago and and has opened up
of their comfort zone and taking the a business that was family-owned and
inward looking.
The expansion with new editions –
Dainik Jagran, for example, has 37 main
editions and Dainik Bhaskar has 36 (and
Over the past few years, we both have many more sub-editions) - is
have seen significant growth a slow, painful process, even more so
in the Indian regional print now, since everyone has the same thing
media industry, which has long in mind. This is what makes acquisitions
surpassed the growth of English tempting. Already we have seen Jagran
news dailies. Prakashan acquiring Nai Dunia in
Girish agarwal Madhya Pradesh for an undisclosed
Promoter Director, Dainik Bhaskar amount last year. More recently, Amar
Ujala was in the news when Essel Group
14 August 2013 R afaqs! Reporter i Special Reportspecial
Mergers and acquisitions have been
fewer than one would have imagined.
Consolidation (in the form of For many, running a newspaper is a
Hindi NewspaperS
strategic alliances, JVs, takeovers, family business and one which gives the
minority stakes) is the way ahead owners their identity and local clout.
for the industry to grow and face What would they do without it? In other
competition from digital and cases, deals haven’t happened because the
electronic media. seller has unreasonable expectations on
KK Goenka valuation. Dodgy accounts are another
General Manager, Prabhat Khabar issue.
There are dissenting voices on the
value of mergers. Says Arvind Kalia,
(Zee) and Dainik Jagran both expressed marketing head of Patrika Group, “No
interest in buying a stake. Dainik Bhaskar doubt that big is beautiful nowadays.
Group had acquired Suarashtra Samachar That’s why Patrika expanded its reach in
Newspaper in Gujarat in the year 2006. the Hindi heartland, as well as to non-
In the South, in a cross-media deal, the Hindi states. We did look at buying a
Sun TV Network acquired the Tamil media house, but later abandoned the
daily Dinakaran, in 2005. idea because the value of a newspaper
It seems inevitable that a small house can’t be enhanced by taking over a
number of brands will rule the Hindi less successful business.”
belt. KK Goenka, general manager of
Prabhat Khabar says, “For any industry The Growth Story
there is room for two to three players for How large the Hindi game is becomes
profitable growth, which is sustainable quickly evident on looking at the list
with the rise over a long period of time. In today’s of the most widely read dailies: the top
in spending capital intensive and price sensitive print three, Dainik Jagran, Dainik Bhaskar and
power of the market, consolidation (may be in the Hindustan, come from here.
population in form of strategic alliances, joint ventures, As Mandir Tendolkar, vice president,
takeovers, minority stakes) is the way Lokmat Media, says, “It works just like
smaller cities, ahead for the industry to grow and Bollywood movies. Although films are
the game is face the competition from digital and being produced in other languages,
shifting. This electronic media.” He thinks regional Hindi movies are the first choice of the
has increased players like Prabhat Khabar could audience. Emerging rural markets are
share resources by tying up with other playing an important role in the growth
the demand independent regional players elsewhere of Hindi print, where a newspaper is not
for regional in the country. There hasn’t been much only a source of information, but leads to
content. progress on this, though. a lot of discussion as well.”
Lokmat Media’s Hindi newspaper,
Lokmat Samachar, has been busy over the
last two years spreading its reach in the
There is no doubt that big is hardcore Marathi regions of Kolhapur,
beautiful nowadays. That’s why Jalgaon, Pune and Aurangabad. The
Patrika expanded its reach in the newspaper, on July 12, entered the Hindi
Hindi heartland and to non-Hindi speaking belt of Madhya Pradesh with a
states. But we didn’t want to do it separate edition in Chhindwara.
by buying a media house. “All the language dailies have a
Arvind Kalia specific region to boast of,” points out
Marketing Head, Patrika Group Debu Mishra, a consultant, adding, “but
Hindi has the entire north, central and
a majority of the east to penetrate.” It
16 August 2013 R afaqs! Reporter i Special Reportspecial
is harder for a regional player to defend advertisers that has set Hindi dailies
territory, because the Hindi game has got racing to dot the Hindi belt with
very large – and local. editions. However, this has had other
Hindi NewspaperS
In the past, growth in media consequences.
consumption was driven by the metros Investors like the fact that, unlike
where English was predominantly the English, Hindi dailies have had a healthy
leader, but with the increase in spending cover price for a relatively smaller number
power of the population in smaller cities, of pages. Traditionally, circulation
the game is shifting. This has increased revenue has accounted for about 40 per
the demand for regional content. cent of their revenue, more than twice
As Hindi titles have increased their the ratio for English dailies. Because
penetration of small town India, their advertising was relatively weak, publishers
blanket presence has made them attractive had the mindset that demanded readers
to national advertisers who need reach. pay. Since local competition was weak,
And the more centres they cover, the readers went along.
more irresistible they get. That has changed. The dailies may
be much larger than before, but the
competition is more intense too. To find
acceptance in new markets, dropping
the cover price is the obvious ploy.
Emerging rural markets are Raising them is never easy. Gradually,
playing an important role in the the share of circulation revenue in the
growth of Hindi print, where a total revenue is declining. Perhaps there
newspaper is not only a source of is no solution, but a higher circulation or
information, but leads to a lot of pay revenue is a reassuring factor when
discussion as well. the economy – and therefore advertising
Mandir Tendolkar – slows down. Still, north Indian states,
Vice President, Lokmat Media
the traditional economic laggards, have
been performing well in recent years
and that creates a huge upside for Hindi
a higher ad race newspapers.
circulation or Education, which was by far the largest
advertising category by volume in 2008,
Between now and 2017, according
to KPMG, advertising revenue in Hindi
pay revenue is ceded the top spot to automobiles in 2012. will grow at a CAGR of over 13 per cent,
a reassuring Following close behind was a category while circulation revenue will go up at
factor when associated strongly with television, but less than 6 per cent per year. What this
the economy – rarely with print – fast moving consumer
goods. The biggest spenders of all,
means is that the share of circulation
revenue will drop from 35 per cent in
and therefore FMCG brands, have been tempted by 2011 to 27 per cent by 2017. (It has
advertising – Hindi dailies because while the reach painted a similar picture for regional
slows down. is vast, a message can also be sharply language dailies while, in the case of
targeted via the plethora of editions. And, English, it foresees 6 per cent annual
of course, it is affordable. growth in advertising and only 2 per cent
The next level of growth, according in circulation during this period.)
to the industry experts, is expected to “Over the past few years, we have seen
be driven by financial services. “The significant growth in the Indian regional
aspirations, coupled with available funds, print media industry, which has long
is driving the consumption in smaller surpassed the growth of English news
towns, and this is where the opportunity dailies,” says Girish Agarwal, promoter
lies,” says a senior media planner. director of Dainik Bhaskar Corp Ltd,
It is the competition to get national adding, “With increasing literacy and a
18 August 2013 R afaqs! Reporter i Special Reportspecial
rapid growth in the aspirations of mid- Apart from increasing the penetration
income households in Tier 2 and 3 towns of its flagship brand, Dainik Jagran, the
and cities, advertisers are keen to capture company is trying another avenue to
Hindi NewspaperS
their attention and mind space. Although woo young readers. Inext, the group’s
this has resulted in a spurt in demand bi-lingual daily, covers 12 cities in four
for most regional language newspapers, states. And its English city-centric paper,
Hindi continues to be a preference and CityPlus, is extending its presence across
is well poised for tremendous growth.” the country. As of now, the newspaper
It is the recognition of the power of has 31 editions targeting premium
Hindi that both BCCL and HT Media geographic localities.
have thrown their clout behind Navbharat Hindi publishers have put their money
Hindi Times and Hindustan respectively. where their mouth is and transformed
publishers Navbharat Times re-launched its the landscape, as also their reputation.
Lucknow edition earlier this year, after There was an economic wave to ride and
have put closing it in 1985. It is expected to soon they recognised that.
their money introduce editions from other districts They have also worked hard at
where their in Uttar Pradesh, as well as restart its changing the perception about the
mouth is and old editions from Kolkata, Patna and affluence of their readers, with both
Jaipur. Hindustan Media Ventures Ltd’s marketers and agencies. It shows in the
transformed (HMVL) Hindi daily, Hindustan, is also narrowing ad rates between English and
the landscape, planning to start more editions in its core Hindi dailies. Now non-Hindi dailies
as also their markets of Uttarakhand, Bihar and Uttar have the same battle to fight in the
reputation. Pradesh. coming decade. n
20 August 2013 R afaqs! Reporter i Special Reportspecial
Regional NewspaperS
Coming of Age
What direction the Indian newspaper industry will take in future
depends a lot on how the regional language newspapers can draw
people to the daily reading habit.
T o understand why regional
newspapers have done so remarkably
well in the last few years, it is instructive
cheese (up 58 per cent in same store
sales), prickly heat powder (48 per cent)
and pre-post wash products (44 per cent).
to read a report released last year by In towns under one lakh, it was cheese
research agency Nielsen, titled ‘Demand again on top with 103 per cent, followed
Spotting: The rise of the Indian Small by prickly heat powder (53 per cent) and
Town’. Referring to consumer demand, packaged rice (47 per cent).
it says: ‘The charge is led by the tier Consumers from these towns are
II and tier III towns. The metros have simply more willing to spend. When
carried India for the last decade; now they asked residents of the four sample
smaller towns have taken on the demand towns, the price of the most expensive
baton.’ mobile handset at home, the figure was
`8,610. In comparison, the answer in
Pune was `6,512. Again, when they asked
small towners whether they intended to
The regional press has upgrade their TV sets over the next two
always been growing, especially years, four out of five said they would –
in the last one decade. It captures as compared to only three of five in Pune.
newer markets and penetrates This story of figures tells us that
deeper into the regions than any consumers in towns with a population
other medium. of less than 10 lakh are eager to spend.
Varghese Chandy What is more, the report says, ‘there is a
CGM, Malayala Manorama Group noticeable increase in the willingness to
partake in categories and price segments,
that were, until now, not associated with
Based on a survey of four towns small town India.’
Brands across across India with a population of between Brands across categories, from
categories 1-10 lakh (Bhatinda, Jhansi, Nanded and FMCG to automobiles and everything
are rushing Anantpur), the research firm found that in between, are rushing for the small
for the small in 42 out of 83 FMCG product categories, town, the new Mecca of consumption.
same-store sales had grown by at least 10 Growth is coming from same-store sales,
town, the per cent in Q4 2011, over Q1 of the same of course, but brands are strengthening
new Mecca of year. And in towns with a population their distribution too, setting off an
consumption. of less than one lakh residents, growth additional surge of demand.
newspapers had exceeded 10 per cent, within three To cater to this new found focus of
are following quarters in 53 categories. marketers, newspapers are also moving
The fastest growing categories were into these markets with alacrity. Rising
with alacrity. a revelation too. In middle India towns literacy rates are providing the additional
(1-10 lakh), the fastest growing were boost.
22 August 2013 R afaqs! Reporter i Special Reportspecial
seeing already established regional dailies
strengthening their presence and new
The regional press is a players entering the market, but owners
Regional NewspaperS
better representation of the local of English dailies are taking the plunge
milieu and is mostly the first point too.
of reference for most The BCCL group announced
of the population. the launch of Ei Shamay, a Bengali
KRP Reddy newspaper for West Bengal. Similarly,
Vice President, Marketing, The Hindu Group announced its plans
Sakshi
of coming up with a Tamil daily. Up
north, Dainik Bhaskar Group launched
Divya Marathi in Maharashtra, following
window to the world up on the launch of its Gujarati daily,
A newspaper is still regarded as a guide to Divya Bhaskar, in 2003.
information and personal development Tendolkar of Lokmat Media, points
in small towns. With each household out, “Look at the way publishers are
wanting to do better, education is getting entering new markets, creating district
a big thrust. Reading in any form is editions. All this is happening because of
encouraged, as it is considered a window the tremendous potential. The regional
to the world. In India, there cannot newspaper is the first touch point for
be a more economical way of staying a household. Even if an adult buys it,
informed about the happenings of the the child feels something for the paper,
world, than through a newspaper. because it is being read by his parents
Varghese Chandy, chief general whom he idolizes.” Lokmat has 68 district
manager, Malayala Manorama Group, editions of its Marathi daily.
says, “The regional press has always been Seconding her, KRP Reddy, vice
growing, especially in the last one decade. president, marketing, at the Telugu daily
It captures newer markets and penetrates Sakshi, says that the regional press is a
deeper into the regions than any other better representation of the local milieu
medium.” Speaking of his own daily, and is mostly the first point of reference
Malayala Manorama, he says, that it has a for most of the population. Talking
reach of 34 per cent in Kerala. “Compare specifically about the Telugu language
this with The Times of India in Mumbai press, he adds that the local language
which has a reach of just 9 per cent. No press is growing rapidly, because much
English newspaper in any market can of Andhra Pradesh is semi-urban. The
better our reach,” he states. average literacy rate of the state is 68 per
Because of the opportunities present cent.
in the smaller towns, not only are we Monica Nayyar Patnaik, managing
director, Eastern Media, publisher of
the Oriya daily, Sambad, adds, “The
regional press cannot survive by just
being a pure language daily, you have
The regional press cannot survive to be future ready. You cannot ignore
by just being a pure language the readers who are into English as well.
daily, You have to be future ready. We need a product that is colloquial in
You cannot ignore the readers who nature.” Eastern Media has two weeklies,
are into English as well. We need a bilingual publication Yuva Sambad,
a product that is colloquial. as well as a tabloid for children, both
Monica Nayyar Patnaik targeting youngsters who speak in Oriya,
Managing Director, Eastern Media
but don’t read the language.
24 August 2013 R afaqs! Reporter i Special ReportCOMING SOON Contact : Anshupriya Sharma M: 8130706789 E: digitalwork@afaqs.com
special
local transformation regional press, as it does the English
Regional dailies across languages have dailies, some of the publishers have begun
been transformed over the past decade. experimenting online, manoramaonline.
Regional NewspaperS
Better printing technology, improved com being among the most striking of
paper quality and peppy designs have them. Mobile apps are also beginning to
ensured that the regional title of today make their appearance.
For now, the popularity of local dailies
rests on their ability to reach deep within
the community and deliver targeted
Industry players need to take a messages, whether for local advertisers or
pragmatic approach. The Tamil national ones.
newspaper industry is evolving Media players have taken to brand
and will continue to develop over activation in a big way, providing
the next few years with new integrated solutions to advertisers. Due
players and fresh challenges. to its local nature, the regional press
Naresh Alambara understands the pulse of the city well and
COO, Daily Thanthi is preferred by brands for promotions,
launches, awareness campaigns and
consumer connect initiatives. By way
since hindi seems to have no connection with the of example, Sakshi regularly conducts
limp black and white paper of the past. education and career counselling fairs, as
and regional This has created its own challenges, well as real estate fairs.
language however. Naresh Alambara, chief Both Hindi and regional language
dailies are operating officer at the Tamil Daily dailies have a special responsibility:
the first Thanthi, is of the view that since the since they are the first newspaper for the
print industry as a whole is undergoing overwhelming bulk of Indians, it is their
newspaper for a transformation, there is pressure on ability to draw them that will determine
many Indians, revenues on one hand and spiralling the future of the Indian press. The fact
it is their costs on the other. “Industry players is that, across India, a large percentage of
ability to draw need to take a pragmatic approach to people who can read, don’t, in fact, read a
containing the problem and addressing newspaper. In eight states, more than half
them that will the issue of continued growth. The the literate population does not turn the
determine the Tamil newspaper industry per say, is still pages of a daily.
future of the evolving and will continue to develop This could be because many of them
Indian press. over the next few years, with new players cannot afford a newspaper. Or it could
and fresh challenges.” There are more be that they have better ways in which
than 25 Tamil newspapers (morning and to spend their money or their time.
evening) catering to the needs of Tamil Whatever the reason, it is how publishers
speaking audiences, across Tamil Nadu tackle the gap between the two figures
and parts of Mumbai and Bangalore. which will determine the direction of the
Though digital does not threaten the Indian newspaper business. n
26 August 2013 R afaqs! Reporter i Special Reportspecial
south india
The south side story
With some of the most dominant players in specific markets and each
language having separate leaders, South India is bound to attract much
more attention from ‘national’ players in the years to come.
W ith some major groups like
DB Corp and Jagran Prakashan
taking the IPO route to fund their
have a very high penetration, is equally
gung ho about the future. “Regional
newspapers will have a healthy growth
growth plans, attention has admittedly provided they start getting higher rates
been focused more intensely on the than what English newspapers get in
prospects for the languages they have metros like Mumbai, Delhi, Bangalore
a presence in. Leaving relatively less of and so on. Research is showing that
the spotlight on South India, a region regional newspapers deliver better in all
that could actually end up surprising on SEC segments. India’s growth has moved
not just the languages front, but also for towards the non-metros,” says Jayant
English language dailies. Mammen Mathew, deputy editor and
The overall print industry in South director, Malayala Manorama.
India is estimated to be `6,265 crore in FY As a group, most of South India has
On the digital 2012 of which the regional print industry the added momentum of faster growth
front too, the is estimated to be `2,970 crore. Kerala rates than the rest of the country as well
southern stars contributes 37 per cent while Andra as a superior educational infrastructure
have been Pradesh and Tamil Nadu contribute 26 in place. Ensuring the benefits of better
per cent and 23 per cent respectively to literacy and faster spread of English
moving quietly the total regional print market in South language make a bigger impact here.
to make their India. To start with, even The Hindu, Categories like Auto, Banking, Education
presence felt. among the region’s most respected and and Aviation have already been major
users of print in the region. Perhaps the
only category they would still wish to see
more of is FMCG, which, as Arun Anant,
Regional newspapers CEO, Kasturi & Sons (publishers of
will have a healthy growth The Hindu) describes it, could certainly
provided they start getting hasten the process of using print more.
higher rates than what English On the digital front too, the southern
newspapers get in metros. stars have been moving quietly to make
Jayant Mammen Mathew their presence felt. While Malayala
Deputy Editor and Director, Manorama group has tied up with Yahoo
Malayala Manorama to create a Malayalam news portal, key
leaders across states have established a
digital presence with an aim to monetise
established groups has made its intention them effectively. The advantage of a
Source:
Deloitte Touche clear to launch a Tamil daily soon. strong Indian expats audience in the
Tohmatsu India’s Another strong regional leader, the middle east and other regions is an
Media & Entertainment
in East India- Bengal,
Malayala Manorama group in Kerela, advantage allowing better realisations for
A vibrant way forward. where the Malayalam language dailies online inventory. n
28 August 2013 R afaqs! Reporter i Special Reportspecial
Dailies in Bengal
Shaken and Stirred
in Bengal
The West Bengal market, like Kerela is dominated by language dailies,
and the prognosis is more of the same. While recent political events
have made it a volatile market for some, at its core, this remains one of
the strongest print markets in the country.
W est Bengal has for long been
a regional daily stronghold. Not
only have they shaped the thinking of the
to English at many levels and English
language newspapers have managed to
be a second newspaper in households,
general population but, like Kerela, also especially in Kolkata. However, West
become an integral part of all classes of Bengal remains one of the few markets
the society. Newspaper consumption is a where English dailies do not command
matter of pride for most Bengalis, putting a premium over language publications,
the better print players in that market on especially the leading ones from ABP
a very secure footing. Group.
In such a steady market, the biggest The print media in West Bengal is
change recently has been the attempt to estimated to be `980 crore out of which,
shift focus towards the youth readership, the regional print has a share of `600
which has emerged as a large and crucial crore (annual growth rate of 10 per cent).
segment for growth as well as advertising However, the English print media stands
support. The perception that only a at about `380 crore (annual growth rate
small fraction of the readers between the of 9 per cent). The total print market in
age brackets of 15 to 35 years can read West Bengal is expected to cross `1,450
Bengali has led to innovations around crore by 2016.
content and packaging. Both ABP and Even luxury brands, which have
The Times Group have launched youth long avoided the regional media, have
focused Bengali dailies, E Bela and Ei realised its exceptional reach in their
Both ABP and Samay respectively in the past two years. target segments and have started using
Currently, the penetration of Bengali it to communicate with their potential
the Times dailies amongst the SEC A population customers. Unlike most regional dailies
group have aged less than 30 years is higher than who get majority of their advertising
launched that of English dailies in West Bengal. revenue from local brands, Bengali dailies
youth focused This disparity is evident even in the get larger chunks of advertising from
population aged above 30 years. national brands than the local brands.
Bengali In past few years, and especially after A large amount of advertisements in
dailies, E Bela the Times of India’s entry into Kolkata in regional language dailies is come financial
and Ei Samay 2000, readers have gradually been exposed institutions. n
respectively
in the past two Source:
Deloitte Touche Tohmatsu India’s Media & Entertainment in
years. South India, Promising signs ahead.
30 August 2013 R afaqs! Reporter i Special Reportspecial
Battleground Maharashtra
Growth years
The market for Marathi dailies is an active battleground for
the major players. With a slew of new editions and launches,
it is set to enter a period of sustained growth. By Kajal Malik Kajal malik
Media Consultant
The big Debutants expanding the market in its key launch
Editions (in order of editions and Maharashtra Times making
launch launch) a strong success in Pune market.Their
Maharsahtra Times Jan-11 Pune, Nasik, Aurangabad, Nagpur, entry seems to have clearly impacted the
(beyond Mumbai) Kohlapur (launching in Nagar and
Jalgaon soon) leader - Lokmat where a significant drop
Divya Marathi May-11 Aurangabad, Nasik, Jalgaon, Nagar, in readers in visible. Sakal on the other
Solapur, Akola (launching in Amravati hand continues to grow while closing the
soon)
gap in circulation with Lokmat.
M aharashtra has always been
a P1 market for a large set of
advertisers with an interest in Mumbai
Bigger
Maharashtra print pie is almost
as well as Rest Of Maharashtra (ROM). the largest amongst the other regions
However what makes it a delight is the (English and Marathi) and within
opening up of this market with newer regional print pie, it continues to attract
and bigger opportunities through the higher revenue shares. With two national
large print groups in this market. players entering and TOI expanding
into newer regions (Kohlapur being
New this year), the pie should see some
Two of the largest print titles increase in an already strong market.
Maharashtra Times and Divya Marathi This coupled with the fact that some of
are expanding in the state and soon the larger print groups have embarked
shall offer the key markets coverage. on large initiatives in Maharashtra, it
Within a span of two years, both have should evoke higher interest from the
Marketeers
gained a strong entry with Divya Marathi market and advertisers. n
increased
attention on
“Chalo Gaon Marathi Dailies – IRS SNAPSHOT
ki Taraf” is
Absolute
indeed a growth % change
2012 Q2 2012 Q3 2012 Q4 change (Q3 vs Q4)
opportunity. Low (Q3 vs Q4)
cost advertising Daily Deshdoot 126000 113000 124000 11000 9.7
in local markets Daily Sakal 4437000 4403000 4469000 66000 1.5
hold good Deshonatti 741000 736000 713000 -23000 -3.1
potential. Divya Marathi 695000 924000 1024000 100000 10.8
Ajit Nair Lokmat 7505000 7409000 7313000 -96000 -1.3
National Head- Loksatta 956000 955000 912000 -43000 -4.5
AIM at Lokmat Maharashtra Times 1499000 1597000 1711000 114000 7.1
Media Ltd. Pudhari 2604000 2477000 2374000 -103000 -4.2
Punya Nagari 1772000 1740000 1681000 -59000 -3.4
Tarun Bharat 873000 818000 750000 -68000 -8.3
All Readers: Maharashtra, Source: IRS 2012 Q4
32 August 2013 R afaqs! Reporter i Special Reportspecial
rtspeak
expe
Regional dailies do
Regional papers will continue to definitely have a lot of
outpace English in the foreseeable potential. But they are unclear
future. However, as a Group, we are as to how to tap it.
language-agnostic and have launched
highly successful publications in
Gujarati & Marathi as well.
Muralidharan
Director, HAMMER
Pradeep Dwivedi
Chief Corporate Sales &
Marketing Officer,
Dainik Bhaskar Group
The main growth driver for print
in our region can be real estate,
education, electronics and – because
of the coming elections - political
advertising. But I see a problem
In Bengal, people cannot be seen in consumer durables and auto
without an Anandabazar Patrika, advertising, as they are affected by
for example. In other markets, the the depreciating value of the rupee
readership trend will continue to and changes in the RBI policies.
be what it is or reduce because
of media fragmentation and little
time to read.
Arun Anant
CEO, Kasturi & Sons
Anilkumar Sathiraju
AVP & Head South,
DDBMudra Max
Languages have had a good run over the last decade
or so, as the market was driven by rising urbanisation,
literacy on one hand and by the creation of better
products, wider distribution, localisation of content,
aggressive marketing, on the other.
Basant Rathore
VP - Strategy, Business Development & Brand,
Jagran Prakashan Ltd
34 August 2013 R afaqs! Reporter i Special ReportYou can also read
