Telecom companies in India will soon start buying over media companies. Convergence is a reality. Two things that are important in the media business to get the audience that ‘matters’ are brand and content. The line between telecom and media companies will blur and the former, with their soaring valuations, will try and buy into and buy over media and content companies.
We live in a digital convergence age and India is fast catching up with the world in digital social availability. Telecom Regulatory Authority of India (TRAI) has proposed a hike in the foreign investment limit for cable networks from 49 per cent to 74 per cent. The TRAI estimates that Rs15,000 crore will be needed to upgrade cable networks to a basic digital format and an investment up to Rs64,000 crore would be needed to shift to the high-tech platform prevalent in developed countries.
The stage is set for major players to roll out triple play carpet.
As increasing bandwidth allows richer technology outlays, more and more content will find its way over the ubiquitous copper line into the smart phone, handheld or portable Internet device. But with wires horribly crossed, the auction of the 3G spectrum and the future of mobile telephony hang in the balance.
We live in a digital convergence age and India is fast catching up with the world in digital social availability. Telecom Regulatory Authority of India (TRAI) has proposed a hike in the foreign investment limit for cable networks from 49 per cent to 74 per cent. The TRAI estimates that Rs15,000 crore will be needed to upgrade cable networks to a basic digital format and an investment up to Rs64,000 crore would be needed to shift to the high-tech platform prevalent in developed countries.
The stage is set for major players to roll out triple play carpet.
As increasing bandwidth allows richer technology outlays, more and more content will find its way over the ubiquitous copper line into the smart phone, handheld or portable Internet device. But with wires horribly crossed, the auction of the 3G spectrum and the future of mobile telephony hang in the balance.
All this is fine but here are some implications for our media, entertainment and telecom industry in India:
• English and Indian language newspapers in the next 10 years will grow tremendously. The Indian language ones will grow faster. The twin reasons are increase in literacy and rise in affluence levels.
• Free newspapers will be launched next year and become a dominant player in the next five years.
• Media rates or advertisement yields will go up, as they are almost one-third of what they are in the world. Yes, the larger players will benefit.
• Indian media organisations will become multi-media and survive.
• There will be mergers and consolidation, and players who embrace and infuse capital and international best practices will survive.
• The professionals in this sector will cross from content platforms to digital distribution platforms.
• The industry will move away from dependence on advertising revenues to subscription fee-based revenues.
• Newer entrants such as Moser Baer, which is neither a media nor a telecom company, will emerge as large players in the domain of content and entertainment.
Telecom companies in India are likely to become bigger than media companies and then the following maxim for media companies would be true: “I started at the top and worked my way down”. I hope and pray for my media baron friends.
COURTESY: Anurag Batra , co-founder and editor- in-chief of the exchange4media group.
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