Welcome to the January 2014 edition of The Newsreel, Ernst & Young’s newsletter on the media and entertainment (M&E) industry.
India’s M&E industry saw increased activity in the TV segment, with several new developments and channel launches. Zee Entertainment has absorbed the media business of Diligent Media Corporation. Reliance Broadcast Network and CBS Studios have ended their JV operations. Zee Media Corporation is launching two new channels, Zee Purvaiya and Zee Kalinga, while TV18 Broadcast and Viacom18 are launching CNBC Bazaar, a Gujarati-business news channel, and MTV Indies, an indie-music channel, respectively.
The TV segment also saw new regulations as the Cabinet approved new TV rating guidelines. With the Cabinet’s clearance, the MIB will now have regulatory control over TV ratings agencies in India. However, the new rating guidelines may result in a dark period for ratings, since it will be difficult for TAM Media Research, the sole rating agency in the country, to comply with the guidelines within 30 days. Furthermore, the Broadcast Audience Research Council (BARC) will only be able to roll out its services by 2H14.
The sector also witnessed increased activity in the rural marketing segment, with Aegis Media India launching Carat Fresh Rural, the rural division of Carat Fresh Integrated, and WPP’s subsidiary Grey acquiring a majority stake in RC&M, one of India’s largest rural communication and marketing service providers.
This month, we explore the news segment and the future of news in India, given all the changes taking place in the segment. This edition of Newsreel includes a feature on the Integrated Newsroom and discusses its concept and applicability. We also present the views of Bhaskar Das of Zee News on evolving trends in the news sector and the way forward from here on.
I hope you enjoy reading this edition of The Newsreel. We look forward to your valuable feedback and suggestions, which will enable us to make this newsletter even more interesting and useful for you.
With kind regards,
Farokh T. Balsara
Partner and Sector Leader — Media & Entertainment