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Setting up TV Serial Production Industry

OBJECTIVE OF THE PROJECT

The main objective of the project is to create a TV SERIAL PRODUCTION INDUSTRY,LIFE WORKS PRODUCTION INDUSTRY & the targeted audience of this industry is

mainly the families of the middle income group. The objective of our industry can be

achieved through widespread promotion & the advertising. To make it available to the

general masses, we are planning to broadcast it on free-to-air channel. Later on when it gains

its required audience, we will produce some new serial to be aired on paid channels.

The various steps involved in the setting up of the industry is thoroughly

studied & the findings are reproduced in this report. The report gives a comprehensive

aspects & requirements in the setting up of a SERIAL PRODUCTION INDUSTRY.

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INTRODUCTION

The Indian Entertainment and Media Industry have out-performed the Indian economy and is one of

the fastest growing sectors in India. It is rising on the back of economic growth and rising income levels that

India has been experiencing in the past years. This is significantly benefiting the entertainment and media

industry in India as this is a cyclically sensitive industry and it grows faster when the economy is expanding.

An added boost to the entertainment and media industry in India is from the demographic point of view

where the consumer spending is rising due to increasing disposable incomes on account of sustained growth

in income levels an reduction of personal income tax over the last decade.

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INDIAN TELEVISION INDUSTRY

The Indian Television Market is on the threshold of a major technological change. New distribution

technologies - such as digital cable, DTH and IPTV are have hit the market and broadcasters and cable

operators are voluntarily opting for addressable cable systems. In fact, all spheres of the Industry content,

broadcasting, distribution and regulation are witnessing technological changes. The Telecom Regulatory

Authority (TRAI), which was appointed as the regulator for the Industry in 2004, has put major policy

framework in place. In 2005, the government also announced the Down linking Policy with the objective of

laying down guidelines to regulate channels beamed into India from outside India. On the content side, the

trend of interactive and niche programming gained further impetus. Broadcasters launched increasing

number of niche channels in order to draw more eyeballs. Globally, TV on mobile grew by leaps and

bounds. And India was no exception to the rule. TV enabled mobile handsets are gaining popularity in

India. Broadcasters are tying up with telecom providers like Bharti, Hutch and Reliance Infocomm to

provide their channels on mobile handsets. In fact, Times Now, a news and current affairs channel from

Times Group, was first launched on Reliance mobiles and then on regular television sets.

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HISTORY

The prestigious history of Indian television has envisioned the development of audio visual media in the

nation. During the 1980s Indian small screen programming began and at that time there was only one

national channel Doordarshan, which was government owned. The Ramayana and Mahabharata were the

first major television series produced. This serial reached the zenith of the world record viewership numbers

for a single program. By the late 1980s more and more people started to buy television sets.

Television in India has been in existence for about four decades. For the first 17 years, it spread

haltingly and transmission was usually in black and white. The thinkers and policy makers of the country,

which had just been liberated from centuries of colonial rule, thought television to be a luxurious element

that Indians could do without. In 1955 a Cabinet decision was taken disallowing any foreign investments in

print media which has since been followed religiously for nearly 45 years. Sales of TV sets, as reflected by

licences issued to buyers were just 676,615 until 1977.

The rapid expansion of television hardware in India increased the demand for developing more

program software to fill the broadcast hours. Program production, previously a monopoly of Doordarshan,

the government-run national television system in India, was then opened to the group of aspiring artists,

producers, directors, and technicians. Most of the talented individuals got connected with the television

industry. Highly popular television soap operas began with Hum Log in 1984-85, evoked a programming

revolution at Doordarshan. The main lesson learned from this experience was that an indigenous television

program could attract and build a large loyal audience over the duration of the serial, generating big profits.

The advertising carried by Hum Log promoted a new consumer product in India, Maggi 2-Minute Noodles.

The public rapidly accepted this new consumer product, suggesting the power of television commercials.

Hum Log, one of the most popular Hindi serials, was quickly followed by Buniyaad, a historical

soap opera about the partition of British India into India and Pakistan in 1947. In 1987, Ramayana, a Hindu

religious epic, attracted smash ratings, to be then eclipsed by the phenomenally successful Mahabharata in

1988-89. In the 1990s, serials were in large numbers on Doordarshan. Huge hits included historical serials

such as The Sword of Tipu Sultan and The Great Maratha, religious serials such as Jai Hanuman, Shri

Krishna, and Om Namah Shivay, fantasy serials like Shaktimaan, and family serials like Shanti, Hum Raahi,

and Udaan. These popular television programs attracted large audiences, and generated vast advertising

earnings for the Indian government through Doordarshan. Advertisers quickly understood the advantages of

advertising their products on a medium that reached a huge national audience.

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Television has come to the forefront only in the past 21 years and more so in the past 13. There were

initially two ignition points in the history of Indian television. The first in the eighties when colour TV was

introduced by state-owned broadcaster Doordarshan (DD) timed with the 1982 Asian Games which India

hosted. It then proceeded to install transmitters nationwide rapidly for terrestrial broadcasting. In this period

no private enterprise was allowed to set up TV stations or to spread TV signals. The second turning point in

the history of Indian television came in the early nineties with the broadcast of satellite TV by foreign

programmers like CNN followed by Star TV and a little later by domestic channels such as Zee TV and Sun

TV into Indian homes. Before this, Indian viewers had to make do with DD`s regulated fare which was non-

commercial in nature and directed towards only education and socio-economic development. Entertainment

programmes were few and far between. And when the solitary few soaps like Hum Log (1984), and

mythological dramas like Ramayana (1987-88) and Mahabharata (1988-89) were televised, millions of

viewers stayed glued to their sets. When, urban Indians learnt that it was possible to watch the internationalaffairs on television, they gradually bought dishes for their homes. Others turned entrepreneurs and started

offering the signal to their neighbours by connecting cable over treetops and verandahs. From the large

metros satellite TV delivered through cable moved into smaller towns, spurring the purchase of TV sets and

even the upgradation from black and white to colour televisions. Doordarshan responded to this satellite TV

invasion by launching an entertainment and commercially driven channel and introduced entertainment

programming on its terrestrial network. This again fuelled the purchase of sets in the remote regions where

cable TV was not available. .

In the mid-1960s, Dr Vikram Sarabhai, a farsighted technocrat and founder of India`s space

program, began arguing in policy-making circles that a nationwide satellite television system could play a

major role in promoting economic and social development. At Sarabhai`s initiative, a national satellite

communication group (NASCOM) was established in 1968. Based on its recommendations, the Indian

government permitted the concept of "hybrid" television broadcasting system consisting of communication

satellites as well as ground-based microwave relay transmitters. Sarabhai envisioned that the satellite

component would allow India to leap multiple steps into the state-of-the-art communication technology,

speed up the development process, and take advantage of the lack of infrastructure (until 1972, there was

only one television transmitter in India, located in Delhi).

Eventually, satellite television was introduced in India after surveying the constant popularity of

Indian television. Satellite broadcasting fits naturally with India`s immense size, and with the ability of

satellites to overcome natural barriers to television signals like mountains. A satellite in this geo-stationary

orbit is believed to be a perfect platform for television broadcasting. The footprint of the television signal

would cover almost one-third of the earth`s surface. Essentially, satellite communication removes the cost of

distance in transmitting television (or telephone) messages. The initial success of the channels had a

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snowball effect. More foreign programmers and Indian entrepreneurs flagged off their own versions. From

two channels before 1991, Indian viewers were exposed to more than 50 channels by 1996. Software

producers came up to cater to the programming boom almost overnight. Some talent came from the film

industry, some evolved advertising and some also from the field of journalism.

More and more people set up television cable networks until there was a time in 1995-96 when an

estimated 60,000 cable operators existed in the country. Some of them had subscriber bases as low as 50 to

as high as in the thousands. Most of the networks could relay just 6 to 14 channels as higher channel

relaying capacity demanded heavy investments, which cable operators were unable to make. The multi-

system operators (MSOs) started buying up local networks or franchising cable TV feeds to the smaller

operators for a typical fee. This phenomenon led to resistance from smaller cable operators who joined

forces and started functioning as MSOs. The net outcome was that the number of cable operators in the

country fell to 30,000. The rash of players who rushed to set up satellite channels discovered that advertisingrevenue was not large enough to support them. Gradually, at least half a dozen either folded up or aborted

the high-flying plans they had drawn up, and started operating in a restricted manner. Some of them also

converted their channels into basic subscription services charging cable operators a specific carriage fee.

The first private network to capitalize on the opportunity provided by direct broadcast satellite

(DBS) was STAR-TV, headquartered in Hong Kong. "STAR" stands for Satellite Television for the Asian

Region. The network, originally owned by the Hutch Vision Group of Hong Kong, was founded in 1991,

and then acquired for $871 million by Rupert Murdoch`s gigantic News Corporation in 1995. While STAR-

TV was the catalyst for direct satellite broadcasting into India, its path was rapidly followed by Indian-

owned private networks like Zee-TV, and by foreign-owned broadcasters like Sony. By the late 1990s, more

than 40 private television channels were available to Indian audiences. It was estimated that by 2000 India

would have the world`s largest cable and satellite markets with cable connectivity to 35 million homes,

comprising some 150 million cable viewers.

The government started taxing cable operators in a proposal to generate revenue. The rates varied in

the 26 states that go to form India and ranged from 35 per cent upwards. The authorities moved in to

regulate the business and the Cable TV Act, which was passed in 1995. The Supreme Court passed a

judgment that the air waves are not the property of the Indian government and any Indian citizen wanting to

use them should be permitted to do so. The government made efforts to get some regulation in place by

setting up committees to propose what the broadcasting law of India should be, as the sector was still being

governed by laws which were passed in 19th century India. A broadcasting bill was drawn up in 1997 and

that was introduced in parliament. But it was not passed into an Act. State-owned telecaster Doordarshan

and radiocaster All India Radio were brought under a combined company called the Prasar Bharati under an

act that had been gathering dust for seven years, the Prasar Bharati Act, 1990. The Act served to give

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autonomy to the broadcasters as their management was left to a supervisory board consisting of retired

professionals and bureaucrats. .

A committee headed by a senior Congress (I) politician Sharad Pawar and few other politicians and

industrialist was set up to analyze the contents of the Broadcasting Bill. It held discussions with industry,

politicians, and consumers and a report was even drawn up. But the United Front government fell and since

then the report and the Bill was not brought under consideration. But before that it issued a ban on the sale

of Ku-band dishes and on digital direct-to-home Ku-band broadcasting, which the Rupert Murdoch-owned

News Television was threatening to start in India. In 1999, a BJP-led government has been threatening to

once again allow DTH Ku-band broadcasting and it has been talking of dismantling the Prasar Bharati and

once again reverting Doordarshan`s and All India Radio`s control back in the government`s hands.

The year 2000 will be remembered for a single show in the history of Indian television. The Indiantelevision industry went on to switch the fortunes of some promising media companies. Kaun Banega

Crorepati, the Amitabh Bachchan hosted game show based on Who Wants to be a Millionaire, not only

became the most-watched programme on private satellite television but also catapulted Star Plus into an

incredible popular position. On the foundation of the success of Star Plus, Rupert Murdoch built his media

empire. If Subhash Chandra had tasted success all through these years since Zee launched, 2000 was a

turning point in Zee TV`s history as well.

In recent times, Indian television is said to be in close amalgamation with the private channels that

offers all kinds of entertainment and educational shows in a perfect dazzling presentation. The Indian

television or the small screen has achieved strata of indispensability. Life without the audio visual media is

imagined to be a standstill one. The glamour packed soaps and serials, reality shows, talk shows and other

entertainment packages encompass a major section of Indian lifestyle.

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STRUCTURE OF TELEVISION INDUSTRY

Television broadcasting

Television Broadcasting is the distribution ofaudio and video content to a dispersed audience via

television.

Terrestrial television is a mode of television broadcasting by using radio waves through

transmitting and receiving antennas or aerials.

Satellite television is television delivered by communications satellite and received by an outdoor

antenna (usually referred as satellite dish) which remains connected with set-top box to convert the

signal into digital format for the TV set.

Genres Channels

General entertainment Zee, Star Plus, Sony, NDTV Imagine, Sony SABRegional Languages Sun, Etv Bihar, Etc Punjabi, Zee BanglaHindi Movies Zee Cinema, Star Gold, Set Max, FilmyEnglish Movies Star Movies, HBO, PixMusic Channel V, MTV, Zee Music, 9xMGeneral News NDTV, TV Today, Zee News, Star NewsBusiness News CNBC-TV 18, NDTV Profit, Zee BusinessSports ESPN, Star Sports, Ten Sports, Zee Sports, Neo

SportsChildrens

entertainment

Cartoon Network, Hungama, Nickeldon, POGO

Infotainment Discovery, National Geographic ,Fox HistorySpiritual Aastha, Sanskar, GODFashion & Lifestyle Zee Trendz, Fashion TV, TLCYouth UTV Bindas

Television Industry Structure

Broadcasting Content Distribution

Terrestrial

Satellite

Commissioned

Sponsored

Broadcasters

Cable

Operators

IPTV

MobileTV

http://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Soundhttp://en.wikipedia.org/wiki/Videohttp://en.wikipedia.org/wiki/Radio_waveshttp://en.wikipedia.org/wiki/Antenna_(radio)http://en.wikipedia.org/wiki/Televisionhttp://en.wikipedia.org/wiki/Communications_satellitehttp://en.wikipedia.org/wiki/Satellite_dishhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Soundhttp://en.wikipedia.org/wiki/Videohttp://en.wikipedia.org/wiki/Radio_waveshttp://en.wikipedia.org/wiki/Antenna_(radio)http://en.wikipedia.org/wiki/Televisionhttp://en.wikipedia.org/wiki/Communications_satellitehttp://en.wikipedia.org/wiki/Satellite_dish

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The Indian broadcasting industry can be segmented into terrestrial (Doordarshan) and satellite

broadcasting (Star, Zee, Sony etc). Following are some of the key genres and the main channels in each

segment.

Television content

Television content is of two kinds commissioned and sponsored programmes.

Commissioned: In this structure, the television channel commissions the content provider to

produce episodes on a specific fee per episode basis along with incentivized TRR linked rate

structure. When programme becomes successful, remuneration rates are re-negotiated with its

popularity.

Sponsored: In this structure, the content provider makes an upfront payment to broadcasters to buy a

telecast time band and receives free commercial time (FCT). The content producer recoups its

investment by either getting sponsors for its programmes or by selling FCTs to advertisers. The

intellectual property rights (IPR) remain with content producer for such programmes.

Television distribution

The television distribution value chain consists of these main players:

Broadcasters, who uplink the content provided by content providers to the satellite. The majorbroadcasters are Zee, Star, Sun TV.

Cable Operators: Catered to by multisystem operators (MSOs) and local cable operators

(LCOs).

Multi-system operators (MSOs), who downlink the satellite signals and feed it to receivers,

The major MSOs are WWIL, Siti Cable.

Local Cable Operators (LCOs), control the last mile connectivity and transfer the signals to

the subscribers homes.

Direct-to-Home (DTH) - Households are catered by providing signal directly to the homes using

satellite.

Internet Protocol Television (IPTV) provides live television over internet connection. It gives a

new digital visual experience to the viewers. Mobile TV is another exciting mode of distribution of TV channels. Viewers watch tv channel by

subscribing signal from telecom operators.

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PROCESSES AND PRACTICES OF TV SERIAL PRODUCTION

The process and practices of producing television programs differ from one individual to another individual

and from a company to another company. However, some elements are common in all cases.

The process begins with an idea for a television serial program. Mainly producer thinks

upon that what the program would be. He is the initiator in most of the times in generation of ideas but not

necessary in every time. He can get it from different sources like director, script writer or existing novels,

historical events etc.

A producer or production executive takes this idea and nurtures it until it is developed into a

program. The producer provides the vision, hires key participants required for the production process,

arranges financing, supervises the production, and participates in selling and promoting the program. The

producer or the associated production company also provides initial funding for the project to cover the costs

associated with the development of story, budgeting, and finding the financer.

First, the producer puts together a team of writers to develop the idea and convert it into a

story or theme. Many types of writers are involved in program creation: Lead writer, theme writer, story

writer, script writer, and punch-up writer.

As the story gets developed, the executive producer and line producer develop the

production budget. This budget details the cost estimates of employing talent (director and cast), acquiring

music and other rights, staging and design, leasing a studio or location, developing production support and

staff, travel and administrative support, and marketing. In recent years, marketing costs have increased

significantly for television programming as like as feature films marketing cost. Marketing costs for

television programs are typically divided into 50% for publicity, 40% for advertising, and 10% for

promotion. Publicity includes interviews of leading casts on talk shows, radio shows, and magazines.

Idea

Producer

Story or Theme development

Budgeting

Financing

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Financing is a very important aspect of television program development projects. Special

attention is given to the development of a detailed budget. Some projects are self-funded, in that they are

first produced and then sold, and others are externally-funded, in that they are first sold and then produced.

Externally-funded projects are financed by bank loans, customers (networks or individual stations),

individual investors, lenders and advertisers. The project does not start until the financing is fully

guaranteed.

The pre-production phase commences after the project is guaranteed a financial support. First a director is

selected to direct the production. Unlike as in a movie production, television directors have very little

control over the process. Their participation in script writing and cast selections is very limited.

After selection of director of the serial program casting director is hired to find and secure the

leading cast and supporting cast for the project. As television programs primarily involve emerging

actors/actresses, finding good cast is challenging. Casting directors use several sources to find suitable

artists. Personal relationships developed through past work are the primary sources. Cast is selected based

on screen tests and previous experiences. Now the casting trends for lead roles have changed, new faces are

very much preferred.

After the production team is in place, the pilot development work begins. A pilot is generally

one full episode; in some cases, it may require developing more than one episode to show the variations and

consistency. Out of thousands of ideas pilot is developed, it is the overview of the full program. The pilot is

shown to network program directors for approval in telecasting.

After the approval of the pilot copy, script is being made by script writer along with director,

producer and dialogue writer. Then the whole production team meets and reads the script page-by-page,

line-by-line and the required arrangements are planned and done for production.

Art director along with director does the selection of studio and sets up shooting set. Here art

director plays the vital role to mould the set as script requires.

Director Selection

Casting

Pilot & Project Approval

Scripting

Studio or Shooting spot design

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Each scene is generally shot with four cameras (35 mm) from different angles. Here the

written script is transferred into reel. Shooting period for serial program is very lengthy than film shooting

because a daily soap goes for min 1 year to 2 or 3 years. It depends on the TRR rating and earning. Like

already we had seen Kyon Ki Saas Bhi Kabhi Bahu Thi ran for more than 8 years.

After the completion of production of one week editing takes place. Editors do not participate

in the production or preproduction, so they have no connection with actors or production staff. They develop

the first cut independently based on the script and their creativity. The second cut is developed with the

director; third cut with the producer; and the final cut with the network. The network also rates the episodebased on the industry-accepted rating scheme and removes censored scenes. This is a continuous process

because serial goes on daily basis (like 4 days per week).

Finally the serial program is broadcasted on television channel and reaches to the viewers on

fixed schedule can be 4 days or 5 days a week, it depends on the broadcaster and program producer.

Shooting

Editing

Broadcast

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Various people involved in TV serial production industry

Audio Director

Grip Operator

Video recorder

Continuity Director

Wardrobe Person

Camera Operators

Floor Managers

Editors

The Audio directoror Audio technician arranges for the audio recording equipment, sets

up and check microphones,, monitors audio quality during the production, and then strikes,a production

term meaning disassembles and, if necessary, removes the audio recording equipment and accessories after

the production is over.

The Grip operatorwatches rehearsals and decides on the proper placement ofmicrophones for each scene.

The Video recorder operatorarranges video recording equipment and accessories, sets upvideo recordings, performs recording checks, and monitors video quality.

In dramatic productions, the Continuity Secretary (CS) carefully makes notes on scene and

continuity details as each scene is shot to ensure that these details remain consistent among takes and scenes.

Major dramatic productions have a Wardrobe person who sees that the actors have clothes

appropriate to the story and script.

Camera operators do more than just operate cameras. They typically help set up the cameras

and ensure their technical quality, and they work with the director, lighting director, and audio technician

in blocking orsetting up and shooting each shot.

Depending on the production, there may be a floor manager or stage managerwho is

responsible for coordinating activities on the set. One or more floorpersons, or stagehands, may assist him

or her.

After shooting is completed, the Editors use the video and audio recordings to blend the segments

together. Technicians add music and audio effects to create the final product. The importance of editing to

the success of a production is far greater than most people realize.

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Now let us discuss about the various stages of production industry. There are three phases in TV

serial production industry viz

Preproduction phase

Production phase

Postproduction phase

Preproduction phase: There is a saying in TV production industry the most important phase in TVproduction industry is the preproduction phase. In preproduction the basic ideas and approaches of the

production are developed and set in motion. It is in this phase that the production can be set on a proper

course or misdirected (messed up) to such an extent that no amount of time, talent, or editing expertise can

save it. During preproduction, not only are key talent and production members selected, but all the major

elements are planned. Since things such as scenic design, lighting, and audio are interrelated, they must be

carefully coordinated in a series ofproduction meetings. A simple on-location segment may involve only a

quick check of talent positions so that camera moves, audio, and lighting can be checked.

A complex dramatic production may require many days of rehearsals. These generally start with a table

readingor dry rehearsal where the talent along with key production personnel sit around a table and readthrough the script. Often, script changes take place at this point.

Finally, there's a dress rehearsal. Here, it is checked out whether all production elements are in place or not.

This is the final opportunity for production personnel to solve whatever production problems remain.

Preproduction phase: Tasks, such as striking (taking down) sets, dismantling and packing equipment,

handling final financial obligations, and evaluating the effect of the program, are part of the postproduction

phase.

Production phase: The production phase is where everything comes together in a kind of final performance.

Productions can be broadcast eitherlive orrecorded. With the exception of news shows, sports remotes, and

some special-event broadcasts, productions are typically recorded for later broadcast or distribution.

Recording the show or program segment provides an opportunity to fix problems by either making changes

during the editing phase or stopping the recording and redoing a segment.

In order for the program to be successful, one must keep in mind throughout each

production phase the needs, interests, and general background of the target audience(the audience your

production is designed to reach).

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PEST ANALYSIS

The PEST analysis means the analysis of POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL. ThePEST analysis of TV Serial Production Industries is as follows:

Political Analysis:

There are 2 types of channel in the TV Serial Productions:

1. FTA CHANNELS:FTA channels mean FREE TO AIR CHANNEL. It is a basic bouquet of channels for which the customer

would pay a flat amount. The pricing of which may be regulated by the GOVT. as required.e.g.- DOORDARSHAN

2. PAY CHANNELS:PAY Channels means those channels for which the customer would pay the money fixed by Channel

Owner.e.g.- TATA SKY, DISH TV etc.

Economic Analysis:

Foreign Direct Investment limit upto 49% inclusive of both FDI & PORTFOLIO INVESTMENT

COMPANIES with a minimum 51% share held by Indian Citizens are eligible for providing cable TV under the

CABLE TELEVISION NETWORK RULES, 1994. There nobody should undertake any broadcast from Indian Soil

without GOVERNMENT approval.

Social Analysis:

The government plans to use TV channels to spread social messages, as the reach of this medium is the most

compared to the other mediums. For eg: for a 30 mins serial 13 mins are allotted for ads but now out of these 13 mins

3 mins will be allotted for social ads.

Technological Analysis:

There are various types of Technology used in TV Serial Production Industry like Direct-to-home(DTH).

Internet Protocol Television (IPTV) is basically a technology that provides signals via phone lines rather than throughthe traditional cable or DTH route.

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SWOC ANALYSIS

Strengths

INDIA is the third largest television market in the world.

Total no. of TV channels is over 350.

Pay Revenues - primary growth driver for subscription revenues.

Growth in number of TV households

Growth in the television software segment.

India has become a major exporter of programming with 4,000 hours of television shows and 1,600

Bollywood movies.

Weakness

Low switching costs for the consumers.

For DTH you need clearance from the government.

The declining trends of TV viewer ship among youth & house wives.

Industry needs an independent body which could be set up under or by the Indian Broadcasting Foundation

(IBF).

Opportunities

Estimated growth rate of TV industry on an overall basis for next 5 years 18% Compound Annual Growth

Rate (CAGR)

Pay Revenues - primary growth driver for subscription revenues

Growth in number of TV households

Low penetration of multi-channel colour TVs in rural areas

Subscription revenues will drive the growth in the television segment in the next five years. As the market

matures, premium subscriptions for value-added services will drive the growth in subscription revenues.

Major expansion in distribution platforms

Challenges:

Excise duty of 16% levied on set-top boxes and customs duty of 15% brought down to 'nil'

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Content regulation: It was the first time in 2004 that the need for content regulation was also felt. The I&B

ministry is planning to setup a separate regulator to monitor content on TV channels. How the regulator would

be constituted and what kind of monitoring mechanism would be in place, is yet to be finalized. Hence a

comprehensive media policy is what the industry needs.

GEC1 (Star Plus/Zee TV/Sony TV) has fallen from 29.7% in 2004 to 27.7% in 2005 and further to 27% in

Jan-Feb 2006.

Shakeout in the news channel genre On One major cricket match / news event is sufficient to bring a drop in

TRPs of the mass entertainment channels

THE FUTURE OF THE TV INDUSTRY A SERIES OF PERSPECTIVES

A project begins with a creative people who craft an idea for a television production that they believe will

resonate with viewers

In the last three years, the pace of change in the media market has accelerated dramatically, leading to a more-

complex environment in which to create and distribute TV content.

The media market has historically been structured as a series of vertical sectors: TV, radio, printed media and

games. Rights have been sold by sector, with content produced for a single platform on the basis of those rights. The

scarcity of the means of distribution (e.g. ownership of newspaper distribution infrastructure or ownership of a

spectrum broadcasting license) has enabled owners of those scarce resources to command a premium from advertisers

and consumers, and thereby support the sometimes significant costs of production.

Linear TV has been the mainstay of the media market in the developed world for 50 years. Sustained by a

combination of advertising revenue, subscription payments and public funding, broadcasting to TV sets has evolved

relatively slowly.

Terrestrial and cable systems have been the principal distribution mechanisms for TV content. In the last 20

years they were joined by direct-to-home satellite TV, increasing the competition in TV distribution in many

countries. Concurrently, digital transmission technology has reduced the cost of distribution, seeing a 40-channel

platform evolve into a 400-channel platform, increasing choice and supporting limited on-demand services.

In the last three years, however, the pace of change within the media market has accelerated dramatically,

leading to a more-complex environment in which to create and distribute TV content.

The digitization of production has significantly lowered costs, broadening content production to a widercommunity of amateurs as well as professionals, leading to an explosion in the quantity of content available.

The evolution of devices that support both linear broadcast and IP-distributed content has made content moreaccessible.

The widespread adoption of DTT services in most developed countries, including the digital switchover inmany, has significantly increased the number of licenses and has accelerated the fragmentation of traditional

audiovisual markets.

The evolution of wired and wireless broadband networks, in particular the increasing availability of sustained2Mbit/s broadband, has provided an alternative way of distributing low- and standard-definition videocontent.

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As a result of these developments, not only are the traditional barriers between vertical media sectors

dissolving, but also the traditional points of control for broadcasters, namely their broadcast licenses, are diminishing

in value.

Therefore, the media industry appears to be moving towards a more-horizontal structure, differentiated by

capability acrossfunction, e.g. production, aggregation or distribution, rather than control of scarce resources ,see the

figure below:

Figure 1: Potential evolution of the structure of the media industry

The rapid increase in digital content production, device proliferation and take-up (TV, mobile, PC, games

consoles and other devices), and evolving broadband networks are increasing consumer choice and, therefore,

fragmenting content consumption. This makes it harder to retain audiences for particular content, and hence monetize

those audiences through advertising or subscription services.

Competitive advantage is therefore shifting in favor of content aggregation, as consumers want to find content

they value quickly and easily. More than ever, the content interface presented to the user, be it a device-based

electronic program guide (EPG), application interface or browser screen, will determine the success or failure of

content.

For TV broadcasters, these fundamental changes raise three major issues that must be addressed within their strategy:

With the fragmentation of linear TV output and the increasing importance of thematic channels in the programmix, how can broadcasters optimize their digital programming strategy to maintain viewing share across all

broadcast TV platforms?

As IPTV evolves from being another means of delivering linear TV content, to offering an interactiveentertainment experience, to users combining linear and IP-delivered interactive content (as envisaged in theBBCs Project Canvas), what will be the implications for content production processes, programming andmonetization?

As content is increasingly offered across multiple screens, how will the value chain evolve? How canbroadcasters profitably manage the creation of content for both linear and on-demand delivery across multipleplatforms?

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TV Shows With the Most Product Placements

The regional television industry in the Middle East has seen tremendous growth in the last several years.Increases in the number of television viewers, along with favorable economic conditions, have fueled growthexpectations and led to the entry of a plethora of free-to-air TV broadcasters channels. The growth in the number ofchannels, however, has outstripped TV advertising revenue growth, spurring intense competition among broadcasters.The increasing demand for high-quality TV series has led to rising prices, making the production of such series morelucrative for production houses. Another emerging trend is the increasing operational and financial involvement of TV

broadcasters in production, partly to guarantee the quality of output and partly to drive innovation through less

familiar types of content, such as TV films, sitcoms, and soap operas and through new media.

A sign of the rapid growth experienced by the TV industry is the large increase in free-to-air (FTA) TVchannels. The growth in the number of channels has outpaced the growth in TV advertising spend, resulting inslowing ad spend on a per channel basis.

A SHORTER PRIME TIME

Network executives are loath to reveal much about their plans. But it's fair to say that five years from nownetwork television will look very different. The 8 p.m. to 11 p.m. prime-time period likely will be shorter, programswill be tailored to audiences, and increasingly advertisers will show up in the programs instead of just thecommercials. Even more radical, say industry insiders: Networks may turn over programming to outsiders somenights or let local stations provide their own shows on, say, Saturday evenings.

Revenue will increase for :

1. Limited supply

http://images.businessweek.com/ss/09/04/0423_tv_product_placements/index.htmhttp://images.businessweek.com/ss/09/04/0423_tv_product_placements/index.htmhttp://images.businessweek.com/ss/09/04/0423_tv_product_placements/index.htmhttp://images.businessweek.com/ss/09/04/0423_tv_product_placements/index.htm

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2. High quality demand for programs

3. Short span of time

4. Competition in market

5. Maintaining reputation

Although there is a tough competition in market ,the media landscape is changing quickly but in between

those uncertainties the Television Industry moves forward & clear the trends of it.

EXPECTED PROFIT &LOSS ACCOUNT

For the YEAR ENDED 31.03.2012

ParticularsRs. (crore)

ParticularsRs.(crore)

Payment to the artists 15 Income fromadvertisement 45

Rent of equipments 14 Income from TRP 41

Expenses for registeringin a channel 22

Insurance premium 12

Miscellaneous expenses 20

Net profit 3

TOTAL 86 TOTAL 86

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Estimated Balance sheet as on 31.3.2012

LIABILITIES

(Rs crore )

ASSETS

(Rs crore )

Equity share capital 16 Gross block: 32.5

Reserve & surplus 1 Net fixed assets: 15

Tangible net worth: 17 Investments 10

Deferred tax liability 17 Current assets 5

Long term debt 29 Receivables 10

Short term debt 1 Inventories 5

Total debt: 30 Cash 2

Current liabilities 15

Total provisions 10

INCORR

ECTBA

LANCES

HEE

TSCOPY

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TOTAL LIABILITIES:- =79.10 TOTAL ASSETS:- =79.10

References

www.etv.co.inwww.cybercollege.comwww.kapoorekta.comwww.indiantelevision .com

http://www.etv.co.in/http://www.cybercollege.com/http://www.kapoorekta.com/http://www.etv.co.in/http://www.cybercollege.com/http://www.kapoorekta.com/