MME Unit - I

MEDIA MANAGEMENT AND ENTERPRENEURSHIP
Unit-I
Chapter-1
Media Organizations: Meaning, Nature, Structure and importance
MEDIA ORGANISATION:
Media is the plural of the medium and Mass means a large number. Thus by mass media, what
is meant is the main means of communication at a large number i.e. All those means which are
used to communicate with people on the vast level or at a great number as newspapers,
magazines, radio, tv etc. Though communication has always being an important need of life, it
assumed the status of the most essential and one of the basics of life. In the later half of the 20th
century, As a result, a number of different and diverse form of media emerged and institution
imparting their knowledge throughout the country and the world has increase in this battle of
survival of cut throat competition. One of the greatest appreciations is given to the electronic
media which is the capital of communicating the people live in spontaneous coverage of news in
event occurring throughout the country from laymen to the top level of official of government,
semi- government & private sector administration. There is an urgent demand to cater to the
maximum requirement seekers of knowledge in this regard.
NEWSPAPERS: The role of the press in accelerating the development of the company is
important. The press as a social institution should play a crucial & decisive role in the
development of the nation. Leaders express their opinion through newspapers in the Letter to
editor, Column and other related articles. Newspapers also publish columns meant to public
awareness where readers can express their grievances and complaints.
NEWS AGENCIES: Newspapers to a large extent depend upon news agencies for general news
coverage. Even big newspapers don’t have countrywide news reporters. The basic function of
news agency is to survey news and provide news report of current event with a newspaper and
others who subscribe its services.
Compiled by: Dr. Upasana Khurana, Associate Professor & HOD, Department of Journalism & Mass
Communication, KRCHE, GGSIPU, Delhi. E-mail: drupasanakhurana@gmail.com.
MAGAZINES: Magazine disseminates more specialized information. They carry comments and
articles to diverse readers. Magazines are weekly, fortnightly & thus have more time to plan and
publish. They attract wide and diverse audiences. The contents are of high quality and pictorial
staff. It includes articles or stories publish at regular interval. Writing of different types ranging
from factual to practical reporting to mere personal or emotional account regularly appears in the
publication.
The growth of media industry has provided the scope of other media and allied activities. Media
Organisation in simple terms means an individual or an entity engaged in disseminating
information to general public with the help of various medium of mass communication such as
newspaper, radio, television, magazine, blogs, social networking sites etc. Media organisations
can be set up on any number of objectives in connection to media. Some of the popular media
organisations may be in the form of self- regulatory body, media organisation engaged in
distribution and publishing the work of media, media education training institutes etc. Media
organisations can be categorised into two broad categories such as Public Media Organisation
and Private Media Organisation.
Public Media Organisation are usually a non profit organisation. They are also called as Public
Service broadcasting like BBC and Doordarshan. The second one is private media organisation.
There are several media organisation which are operated by private individuals, associations and
companies. Some of the example of private owned media are: Fox, SKY and FTII etc.
Some of the prominent media organisations which operate in India are:
1. Press Information Bureau (PIB): It is the nodal agency of the government of India. Its head
quarter situated at Delhi. PIB disseminates information related to government policies and
initiatives through Print and Electronic media. For this different modes of information
communication are used viz: Press releases, Press Notes, Feature articles, backgrounders,
Photographs and database. Information dissemination is done in Hindi, English, Urdu and other
Indian Languages.
2. Publication Division: The information and broadcasting ministry looks after the division. Its
headquarter is at Delhi. This division is one of the leading publishing houses of the country and
the largest in public sector. Publication division is a repository of books and journals which
covers wide range of subjects such as art, history, culture, biographies of eminent persons, Land
and people, flora and fauna, children's literature, Science and Technology etc. It publishes 21
Journals on issue of national importance and social purpose viz: Yojana, Bal Bharti, Aajkal,
Kurukshetra, Employment News/Rojgar Samachar etc. All the subjects are significant for
highlighting matters of national importance and India's rich and diverse cultural heritage. The
division also brings out selected speeches of the Presidents and Prime Ministers of India.
3. Registrar of newspapers for India (RNI) : It came into existence by amending the press and
registration of books act 1867. This was possible after the Recommendation of first press
Commission. The Press and Registration of Books Act contain the duties and functions of the
RNI. It is performing both statutory as well as some non-statutory functions. The main jobs that
are performed by it are:
• Maintenance of records about the newspapers published.

• Issuing of certificate of registration to the newspaper.
• Scrutiny and analysis of annual statement containing information on circulation and
ownership etc.
• Informing the district magistrates about availability of titles.
• Intending publishers for filing declaration.
• Ensuring that newspapers are published in accordance with the provision of the Press and
Registration of Books Act 1867.
• Preparation and submission of report on emerging trends in circulation to the government
on or before 31st December each year.
4. Research and Reference division: This division was set up in 1945. The main objective of
this division is to serve as an information bank as well as an information feeder service to the
media units for stop this further helps in their programming and publicity campaigns. It studies
trends in media and maintains a difference in documentation service and Mass Communication.
Some of the key objectives of this division are:
• To collect and collate basic information on matters of national significance.

• To provide reference services to the media unit of the Ministry of Information and
Broadcasting.
• To provide research support in matters of interest to the Ministry of Information and
Broadcasting and its media units.
• To convert the information available with other media units into reference material for
use by press/officers.
Apart from this it prepares and publishers newsletter, research papers and journals. It also
conducts various training and workshops for upgradation of various media units. It even designs
and conduct training programs for IIS officers.
5. Photo Division: The photo division is the subordinate office of the Ministry of Information
and Broadcasting. It was established in October 1959. The main function of the division is to
provide visual support to the media units of Ministry of Information and Broadcasting. It also
provides support to other Central and state government departments. The division covers almost
all major events of national importance. It supplies black and white as well as colour
photographs on payment to non publicity organizations and the General Public and the division’s
pricing scheme.
6. Press Council of India: It was established in 1966 by Parliament on the Recommendation of

first press Commission. The commission recommended the setting up of a Press Council. The
council comprises of chairman and 28 other members. Press Council is a mechanism for the
press to regulate itself. The objectives of the Council is to safeguard the freedom of the press,
ensure the maintenance of high standards on the part of the press, to foster due sense of rights
and responsibilities of citizenship, to encourage the growth of a sense of responsibility and
Public Service among all those engaged in the profession of journalism.
7. National Library: The National Library is the Apex body of the library system of India. It
comes under the Ministry of Culture of the Government of India. This library is a permanent
repository of all documents published in India. The library is designated to collect, disseminate
and preserve the printed material produced in the country. The main objective of this library is to
acquire and conserve all significant National production of printed material along with foreign
material. It also has a large collection of printed material concerning the country.
8. Government Run Film Media Organisation:
a) Film Division: This division was established in 1948. It is the main film medium
organisation of the Government of India. It is well equipped with trained film personnel,
cameras, recording and editing facilities. The infrastructure available in this organisation
helps to assist in house as well as freelance filmmakers and producers. In its Archives,
the film division of India holds more than 8000 titles on documentaries, short films and
animation films.
b) Central Board of Film Certification: Central Board of Film Certification (CBFC) is a

statutory body under the Ministry of Information and Broadcasting. It regulates the
public Exhibition of films under the provision of the Cinematograph Act 1952. The
board consists of non official members and the chairman (all of whom are appointed by
the Central Government). Its headquarter is at Mumbai with regional offices, at Kolkata,
Chennai, Bangalore, Thiruvananthapuram, Hyderabad, New Delhi, Cuttack and
Guwahati. The regional offices are assistant in the examination of films by advisory
panels. The members of the panel are nominated by the Central Government by taking
people from different walks of life for a period of 2 years. The CBFC certifies a film
under four categories
• Urestricted public exhibition
• Unrestricted public exhibition but with a word of caution that parental discretion
required for children below 12 years.
• Restricted to adults and
• Restricted to any special class of persons.
c) National Film Development Corporation (NFDC): It is a central agency established to

encourage the good cinema Movement in the country. The main objective of NFDC is to
develop talent and facilitate the growth of Indian cinema in all languages. It promotes
Indian culture through cinema in India and Overseas. The Other goal of the NFDC is to
plan, promote in organised an integrated and efficient development of the Indian Film
Industry and Foster excellence in cinema.
d) Directorate of Film Festivals (DFF): This organisation was set up by the government
of India in 1973 to organise International and National Film festivals within the country.
DFF facilitates India's participation in festivals abroad, arranges program of foreign
films in India and Indian films abroad and holds the National Film Award function.
Some of the prominent activities organised by it are organising film festivals of India,
National Film Awards and Dada Saheb Phalke Award, selection of Indian panorama and
looking after promotion of films on behalf of the Government of India. Apart from this it
is also responsible for print collection and documentation.
e) National Centre of Films for Children and Young People: It was formed in the year
1955 to harness the medium of films to provide healthy entertainment to children and
young people. It provides an alternative to Commercial cinema which has certain
implications on the mind of children. The activities which this organization takes care of:
• Production of film and TV serials and dubbing them in Indian languages.
• Exhibiting films and serials in theatre, school and on TV.
• Conducting and promoting participation in film festivals abroad and
• Organizing film festivals which are held every alternate year.
f) National Film Archive of India: This organisation was established in the year 1964 as a
media unit of Ministry of Information and Broadcasting, Government of India. Its
headquarter is situated at Pune with regional offices at Bangalore, Kolkata and
Thiruvananthapuram. It has also been a member of FIFA (International Federation of
Film Archives) from 1969 onward. The mission of the National Film archive of India is
to trace, acquire and preserve National cinema, to document data related to cinema and
encourage Research and to promote Indian cinema abroad.
9. Government Publicity Organisations: There are several Government supported

organisations which work for publicity wing. These organisations are: Directorate of Advertising
and Visual Publicity, Directorate of Field Publicity and Song and Drama Division.
a) Directorate of Advertising and Visual Publicity (DAVP): It performs the functions of

multimedia advertising and publicity for various Ministries and departments of
Government of India. The DAVP has been working as a catalyst of social change and
economic growth over the years. It has been instrumental in creating awareness amongst
masses on socio-economic themes seeking their participation in developmental activities
and for eradication of poverty and social evils. It helps Central Government departments
in formulating communication strategies/media plans. It helps in implementing them at
the Grass root level by providing multimedia support.
b) Directorate of Field Publicity: The Directorate of Field Publicity came into existence in
1953. It is one of the media unit of the Ministry of Information and Broadcasting. The
main objective of this organisation is to project plans, programs, schemes, policies and
achievements of Government of India. It brings men working for producing programs
face to face with the audience. It inform them about various schemes and plans
formulated for the benefit. It has a network of 207 field publicity units under the control
and supervision of 22 regional office.
c) Song and Drama Division: It was set up in 1954 as a unit of All India Radio. It was
established for optimum utilisation of the traditional and the four forms of Art for social
benefit. It utilizes a wide range of stage forms such as drama, folk and traditional plays,
dance drama, folk recital and puppet shows. On an average, the division puts about 36000
programs all over the country every year. The main function of the division is to create
awareness among the general public. It promotes social, economic and democratic ideals
which are conducive to the progress of the nation.
10. Media Education and Training Institutes: Many media education and training centres
have been established for budding media professionals. Some of the media education and
training institutes are
a) The Indian Institute Of Mass Communication (IIMC): It is one of the India's premier
Institute For training, teaching and research in mass communication. It was set up by the
government of India in 1965. Its headquarter is situated at New Delhi and it has three
regional centres viz. Aizawl (Mizoram), Amravati ( Maharashtra) and Dhenkanal
(Orissa). The major focus of th institute is on conducting orientation courses for offices
of the Indian Information Services. It also conducts training programmes, conferences,
seminars and workshops. The institut run diploma courseson variious aspects of mass
communication like advertising, Traditional Media, Print Journalism, radio and
television etc.
b) Film Institute Of India FTII: This organisation was established as, Film Institute of
India in 1960 on the erstwhile Prabhat Studio premises at Pune. FTII Boasts of a rich
legacy in quality of Indian cinema. This Institute was renamed as the Film and
Television Institute of India in 1971. The FTII is an autonomous body under the ministry
of Information and Broadcasting of the Government of India. Its policies are determined
by a governing Council.
11. Press Institute Of India: It is a professional body of Indian newspapers and journals. It was
setup in 1963. It publishers books related to mass media and also a bi- monthly media Journal
called Vidura. apart from this it holds professional workshops and seminars for editorial and
managerial personnel at all levels in the year 1990 and other professional organisation called
Research Institute for Newspaper Development was merged with PII.
12. News Agencies: There are several news agencies which provide news services to Indian
media houses. The two prominent news agencies of India are:
a) Press Trust of India (PTI): This News Agency was registered in 1947 and started
functioning in 1949. After 66 years of its services it employs more than 400 journalists and
500 stringers to cover almost every district and small town in India. Collectively they
produce more than 2000 stories in 200 photograph a day to feed the expansive appetite of
the diverse subscribers. This includes the mainstream media, the specialised press, research
groups, companies and government and Non- governmental organisations
b) United news of India (UNI): It was established in 1961. It is one of the largest news
agencies of Asia. This news agency has 1000 subscribers in more than hundred locations in
India and abroad. It provides services to newspapers, TV, websites, radio, government
offices and public and private corporations. UNI has more than 325 staff of journalist all
across the country and more than 250 stringers covering used in remote areas. UNI services
are available in three languages Hindi, English and Urdu. Some of the other services of UNI
are photo service, UNI Scan, UNI Direct and UNI graphics.
13) Media Organisation For Journalist/ Professional Bodies in Journalism

A) Indian Federation of Working Journalist: The Indian Federation of Working
journalist (IFWJ) was setup in 1950. At that time president of this body was M. Chalapathi
Rau. The IFWZ suffered a vertical split with the departure of a section of journalist. A large
majority of IFWJ members formed the Indian Journalists Union (IJU) in 1989 to carry
forward the struggle for the Delhi declaration. The IJU fought for safeguarding the freedom
of the press, defeating attacks on journalist and free speech and worked for the Welfare of
journalists. The IJU has a large pool of talented young journalist.
b) Indian Newspaper Society: This body was founded in the year 1939 and it was named as
Indian and Eastern newspaper society i.e IENS. This organisation promotes and safeguards the
interest of its members. It periodically holds conference of members to discuss and determine
action on matters affecting the newspaper. From 1940's, it is continuously publishing an annual
handbook comprising the detail of advertising rates, circulation and other data. Since 1988 it is
known as INS.
c) Indian Language Press Association: This body was founded in the year 1941. It looks after
the interest of language press. Any newspaper or periodical published in any of the Indian
languages or any organisation or Society of newspaper is eligible to become a member of this
body.
d) All India Editor's Conference: This Organisation was started in the year 1940. Any
newspaper or periodical published in a India can become its member. Another organisation
which is called as editors guide is also started by this body.
e) National Union of Journalist: It was started in the year 1972. The Founder president of NUJ
was Mr Meenakshi Sundaram.
14) Advertising and Public Relation Bodies

a) Advertising Agencies Association of India: This organisation was set up in the year 1945.
Its membership is open to any organisation, form and company carrying on advertising
profession within the territory of India.
b) The Indian Society of Advertisers Limited: This society was founded in the year 1952
with the objective to promote, maintain and uphold sound ethical and economic principles of
advertising. It publishers survey and disseminates information relevant to its members. This
society awards ISA- Khutau gold medal to a person or organisation which makes outstanding
contribution in Advertising and Public Relations. It also organises seminars and conferences on
the subject relating to advertising.
c) Advertising Council of India: It is a volunteer association of advertisers, advertising agency,

printers and newspapers. It was established in the year 1959. It tries to improve the standard of
advertising and promote the interest of the consumers.
d) National Council of Advertising Agencies: It was formed in 1967 for the purpose of
creating a network of organisations, forms, or companies in advertising business within India.
e) Public Relations Society of India: It was established in the year 1958 to promote Public
Relations profession. This society has around 13 chapters. This chapters depute representatives
to serve on the National Council which guide and Coordinates the plan and policies of the
society.
.
f) Indian Council of PR Practitioner's: This organisation was established in 1983 to promote
Public Relations as a profession. Its membership is open to the people who are in the PR
profession and are working in India.
g) Audit Bureau of Circulation (ABC): ABC was established in the year 1948. It is a non
profit company with no share capital unlimited liability by guarantee.
15. Broadcasting Council: The board of directors of Indian broadcasting Foundation (IBF)
decided to establish an independent complaint redressal mechanism to work as a self regulating
content guidelines mechanism for general entertainment channels (GEC's). For this purpose
broadcasting content complaints Council (BCCC) was established in June 2011. The BCCC is an
independent Council set up by the Indian broadcasting Foundation. The council comprises of a
13 member body consisting of a chairperson (retired judge of the supreme court or high court)
and 12 other members. The composition of other members include 4 Non-broadcasters members,
4 members from any national level statutory commission and 4 broadcaster members. Any
person or a group of persons, may, either individually or jointly, file a complaint against any
program broadcast on any of the IBF member TV channels. It examines complaints about
television programs received from the viewers or any other sources, including NGOs, RWA and
Ministry of Information and Broadcasting etc. It ensures that the programs are in conformity
with the self regulatory content guidelines.
Characteristics of Nature of Media Organizations

New forms of Media Organizations are geared to make Media Organizations more receptive,
adaptive and generative -- always focused on meeting the needs of stakeholders. New forms of
Media Organizations often exhibit the following characteristics:
1. Strong employee involvement - input to the system starts from those closest to the outcome
preferred by the system, from those most in-the-know about whether the Media Organization is
achieving its preferred outcomes with its stakeholders or not. This way, the Media Organization
stays highly attuned and adaptive to the needs of stakeholders.
2. Organic in nature - less rules and regulations, sometimes no clear boundaries and always-
changing forms
3. Authority based on capability - ensures the Media Organization remains a means to an end
and not an end in itself
4. Alliances -takes advantage of economies of scale, e.g., collaborations, networks, strategic

alliances/mergers, etc.
5. Teams -shares activities to take advantage of economies of scale at the lowest levels of
activities and ensures full involvement of employees at the lowest levels
6. Flatter, decentralized Media Organizations - less middle management, resulting in top

management exchanging more feedback with those providing products and services; also results
in less overhead costs
7. Mindfulness of environments, changes, patterns and themes - priority on reflection and

inquiry to learn from experience; develop "learning Media Organizations"
IMPORTANCE OF MEDIA ORGANIZATION
Media Organizations are established to attain the different goals related to the different interest
groups. These are attained through the mutual contribution of all related stakeholders. We
can realize the importance of Media Organization in society in many ways, among which some
are discussed as follows:
A. Synergy effect: In an Media Organization, people having different skills and expertise work
together to produce the synergetic effect with the help of latest technology. The result of the
work done in group will be higher as compared to the additional value of individual work. Media
Organizations make possible the complex activities. A very small team of players and very small
number of civil servants can manage the activities of the government and the nation.
B. Team Spirit: Media Organizations always enhance the team spirit within its team members.
No Media Organization can attain its goal with a single effort of limited members. So, by
naturally Media Organization strengthen the feeling of team spirit to his components.
C. Attainment of Common goal: Different individuals have different goals on the basis of their
social values and they come to the Media Organization in the expectation of the fulfillment of
those goals. Media Organizations fulfill their goals by creating the environment of compliance of
Media Organizational goals with the individual goals. Media Organizations motivate them for
the commitment in the common goal.
D. Employment Opportunity: The Media Organization has thousands of small tasks and
responsibilities in hierarchical form for the goal attainment obviously creating employment
opportunity in variety of scale.
E. Economic Development: Through the employment, purchasing power will increase as well
as the Media Organization has to pay tax resulting more revenue collection for government. This
revenue will help in the infrastructure development like roads, hospitals etc. On the other way,
employment generation is the basic tools for the economic development for any nation.
Employment creates income, income creates purchasing power, purchasing power creates
demand, and to fulfill the increased demand production should be increased. To produce more,
again more employment is necessary. Thus this helps for economic development creating a good
economic development circle in the nation.
F. Specified Service: Media Organizations are established to produce or render specified goods
or services to the society giving emphasis on innovation and creativity. This also helps to fulfill
the customer needs bringing up the social awareness.
G. Minimize Economic Disparities: As the lower level people get the opportunity to work and
get remuneration, the economic gap between the different levels of society will be lowered.
H. Transfer and adaptation of technology: Any Media Organization is involved in ongoing

process of research to enhance its level of services. In this course, it adapts the latest
technologies available in the market and indirectly it also imparts these technologies to the
society through its members.
STRUCTURE OF MEDIA ORGANIZATION
Organizational structure refers to the hierarchy of an organization and how the components of
this hierarchy work together to achieve the objectives of the company. For example, in a
particular area, there are staffs reporting to manager, who may report to another manager or
directly to a CEO depending on (depending on the complexity of the structure or the size of the
organization). Each of this group of persons has their own distinct task(s) to complete that
contributes to a main goal(s).
There are six key elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization
A. Work Specialization
➢ Henry Ford became rich and famous by building automobiles on an assembly line,
demonstrating that work can be performed more efficiently by using a work specialization
strategy.
• Every Ford worker was assigned a specific, repetitive task.
• By breaking jobs up into small standardized tasks, Ford was able to produce cars at the rate of one
every ten seconds, while using employees who had relatively limited skills.
• In essence, an entire job is broken into a number of steps, each completed by a separate
individual.
• By the late 1940s, most manufacturing jobs in industrialized countries were being done this way.
Management saw this as a means to make the most efficient use of its employees’ skills.
• Managers also looked for other efficiencies that could be achieved through work specialization:
B. Departmentalization
➢ Grouping these jobs together so common tasks can be coordinated is called departmentalization.
➢ One of the most popular ways to group activities is by functions performed. For example, a
manufacturing manager might organize his/her plant by separating engineering, accounting,
manufacturing, personnel, and purchasing specialists into common departments.
➢ The advantage to this type of grouping is obtaining efficiencies from putting like specialists together.
Functional departmentalization achieves economies of scale by placing people with common skills
and orientations into common units.
➢ Tasks can also be departmentalized by the type of product the Media Organization produces.
• Procter & Gamble recently reorganized along these lines. Each major product—such as Tide,
Pampers, Charmin, and Pringles—will be placed under the authority of an executive who will
have complete global responsibility for that product.
• The major advantage to this type of grouping is increased accountability for product performance
under a single manager.
➢ Another way to departmentalize is on the basis of geography or territory.
C. Chain of Command
➢ Thirty years ago, the chain-of-command was a basic cornerstone in the design of Media
Organizations.
➢ The chain of command is "an unbroken line of authority that extends from the top of the Media
Organization to the lowest echelon and clarifies who reports to whom."
➢ It answers the questions: “To whom do I go if I have a problem?” and “To whom am I
responsible?”
➢ Two complementary concepts: authority and unity of command.
• Authority—"the rights inherent to management to give orders and expect the orders to be
obeyed."
• The unity-of-command principle helps preserve the concept of an unbroken line of authority. It
states that a person should have only one superior to whom he/she is directly responsible.
➢ Times change, and so do the basic tenets of Media Organizational design. The concepts of chain
of command have less relevance today because of technology and the trend of empowering
employees
D. Span of Control
➢ How many employees a manager can efficiently and effectively direct is an important question.
➢ All things being equal, the wider or larger the span, the more efficient the Media Organization.
• Wider spans are more efficient in terms of cost.

• However, at some point, wider spans reduce effectiveness.
➢ Narrow or small spans have their advocates. By keeping the span of control to five or six
employees, a manager can maintain close control.
➢ Narrow spans have three major drawbacks:
• First, as already described, they are expensive because they add levels of management.
• Second, they make vertical communication in the Media Organization more complex.
• Third, narrow spans of control encourage overly tight supervision and discourage employee
autonomy.
➢ The trend in recent years has been toward wider spans of control.
• They are consistent with recent efforts by companies to reduce costs, cut overhead, speed up
decision-making, increase flexibility, get closer to customers, and empower employees.
• To ensure that performance does not suffer because of these wider spans, Media Organizations
have been investing heavily in employee training.
E:Centralization and Decentralization
➢ In some Media Organizations, top managers make all the decisions. This is highly
centralized.
➢ There are Media Organizations where decision-making is pushed down to those

managers who are closest to the action. This is highly decentralized.
➢ Centralization refers to the degree to which decision-making is concentrated at a

single point. A centralized Media Organization is inherently different structurally
from one that is decentralized.
• The concept includes only formal authority.

• The Media Organization is centralized when top management makes the Media
Organization’s key decisions with little or no input from lower-level personnel.
• The more that lower-level personnel provide input, the more decentralization there is.
➢ In a decentralized Media Organization, action can be taken more quickly to solve
problems, more people provide input into decisions, and employees are less likely to
feel alienated.
➢ There has been a marked trend toward decentralizing decision making. For example,
Sears and JC Penney have given their store managers considerably more discretion on
what merchandise to stock.
F. Formalization
➢ Formalization refers to the degree to which jobs within the Media Organization are
standardized.
➢ A highly formalized job gives the job incumbent a minimum amount of discretion over
what is to be done, when it is to be done, and how he or she should do it. Employees
can be expected always to handle the same input in exactly the same way
➢ The greater the standardization, the less input the employee has into how the job is
done.
➢ Low formalization—job behaviors are relatively non-programmed, and employees

have a great deal of freedom to exercise discretion in their work
➢ The degree of formalization can vary widely between Media Organizations and within
Media Organizations.
Media Organizational Designs
1.Simple Structure
A simple structure is defined as a design with low departmentalization, wide spans of control,
centralized authority, and little formalization. This type of design is very common in small
start up businesses. For example in a business with few employees the owner tends to be the
manager and controls all of the functions of the business. Often employees work in all parts of
the business and don’t just focus on one job creating little if any departmentalization. In this
type of design there are usually no standardized policies and procedures. When the company
begins to expand then the structure tends to become more complex and grows out of the simple
structure.
Functional Structure
A functional structure is defined as a design that groups similar or related occupational

specialties together. It is the functional approach to departmentalization applied to the
entire Media Organization.
2. Divisional Structure
A divisional structure is made up of separate, semi-autonomous units or divisions. Within

one corporation there may be many different divisions and each division has its own goals
to accomplish. A manager oversees their division and is completely responsible for the
success or failure of the division. This gets managers to focus more on results knowing that
they will be held accountable for them.
ORGANISATIONAL STRUCTURE OF MEDIA ORGANIZATIONS :

PRINT/ELECTRONIC AND THEIR FUNCTIONS
ORGANIZATIONAL STRUCTURE OF A NEWSPAPER

Journalism is not concerned only with writing and editing of newspaper and periodicals. The
gathering and transmission of news, business management, advertising and other processes
connected with the production of a newspaper also come under the purview of journalism.
The organizational set-up varies from newspaper to newspaper depending upon the size of the
newspaper and the different services catered for the readers. Generally speaking, most of the
newspapers have three main departments- editorial, business and mechanical.
Every professional organization adopts the principle of division of labor for optimum output. A
print media organizational structure specifies its division of work activities and shows how
different activities are linked. It also indicates the distribution of work activities according to
specialization and refers to the hierarchy, authority, structure and relationships in the print
media organization.
Since time immemorial, a newspaper organization has been defined as three-legged table, i.e.,
it has got three departments:
• Editorial Department
• Advertising Department
• Circulation Department
But today, it is much more than three-legged table. Though the above three departments are the
core departments, yet many other important departments have also emerged like:
• Printing Department.
• Administrative Department
• Accounting Department
• Personnel Department
• Legal Department
• Public Relations Department
EDITORIAL DEPARTMENT:
• Chief Editor or Editor-in-Chief or Editor heads this department.

• It is divided into several sections like: News Section, Views Section, Photo Section,
Computer Section, etc.
• The News Section is further divided into News Room and Reporter’s Room.
• News Editor heads the News Room and it consists of many other staff like Deputy
News Editors, Chief Sub Editors, Senior Sub Editors and Sub Editors.
• They are all responsible for editing news under the leadership of News Editor.
• The Reporter’s Room is further divided into Reporting Wing and Bureau Wing.
• The Reporting Wing is headed by Chief Reporter and it consists of staff like Senior
Reporter, Sports Reporter, City Reporter, Principal Correspondent, Senior
correspondents and Correspondents.
• On the other hand, Chief of the Bureau heads the Bureau Wing and it also consists of
Special Correspondents. The job of all of them is collection of news.
• The Views Section is further divided into Editorial Wing, Article Wing, Feature
Wing and Review Wing.
• The Editor, Resident Editor, Executive Editor, Associate Editors (or Deputy Editors),
and Assistant Editors look after these wings.
• Chief Photographer heads the Photo Section and there are many other photographers
and a few photo editors also.
• Computer In-charge heads the Computer Section and there are several other computer
operators to support him.
Structure of the Editorial Department
Atop the editorial hierarchy ranks the editor or an editor- in- chief who plans and directs the
day to day operations, supported by a team of news editors, chief sub editors, senior sub
editors and sub editors. The news desk usually operates in shift and each shift is headed by a
chief sub, also called as ‘slot man’. Ideally in a newspaper, it is the news editor who plans and
directs page making while the chief sub helps implement his decisions. Reporters and sub
editors are the pillars of organizational hierarchy. The chief reporter supervises the bureau
while the chief sub editor supervises the desk. The hierarchy of authority in the reporting and
editing section is given below.
Editor
The editor holds the key position in the newspaper organization. He is responsible for the
editorial content of the newspaper including everything from comics to news stories to
editorials. It is the editor who can be sued for libel, who can be hauled up before Court,
Parliament and legislatures for contempt. A good editor of a newspaper is aware of the scope
and interpretation of news. He takes all important decisions connected with the publication of
news and expression of opinion on vital national and international issues and events.
News editor
The actual news production process is handled by the news editor in a newspaper. All major
decisions regarding coverage of news stories are taken by the news editor in consultations with
the bureau chief. The news editor coordinates the news collection process, the editing and the
final presentation of news.
Chief sub editor

Chief sub editor ensures that copies are judiciously distributed among the sub editors and also
ascertains that the copies are edited properly and that they conform to publication style and
editorial policy. He may initiate or reply to correspondence regarding material published or
being considered for publication.
Sub editors
The sub editor or copy editor is described as “the mid wife to the story” and “an unsung hero
of a newspaper”. Sub editors work on the copy prepared by reporters. They have no direct
involvement in news events. Still they make the copy attractive. He/she select news events,
remove unnecessary parts and arranges available information in order. He/she has to check and
recheck facts, style, grammar, etc. while editing a story in newspaper. They are also required to
put suitable headlines for each story. A good copy editor is an intelligent reader, a tactful and
sensitive critic. As the saying goes "any fool can write, it needs a heaven born genius to edit”.
Reporters and freelancers

Reporters are people who know how to dig out information whatever the source and no matter
how hidden or obscure it is. A reporter gathers news and writes for his/her organization. A
newspapers reputation and credibility depends on the reporters. A reporter should have a nose
for news, i.e., an understanding of news and news values and the ability to recognize a story
when it comes along. Reporters should be skilled at:
1. Seeing and hearing.
2. Taking notes.
3. Finding information.
4. Asking questions.
5. Checking and verifying information.
6. Analyzing and interpreting information.
Besides these skills reporters should also possess such qualities as alertness, curiosity, speed,
punctuality, integrity, tactfulness, fearlessness and clarity of mind.
Freelancers
Freelance journalists are not attached to any newspapers or magazines. One who writes on all
kinds of topics in several newspapers and periodicals without having a regular payroll is
known as freelance writers. Freelancers quite frequently keep in touch with media
organizations and do assignments as per their needs. With a view to meeting their needs,
freelancers have to complete these assignments as per the schedule of the publications.
Virtually, anybody can be a freelance writer. You must have the grit, determination and
willingness to work hard besides possessing a good language.
BUSINESS DEPARTMENT
The next important department in a newspaper is the business department, which earns
revenue for the newspaper. It is divided into two main division- advertising and circulation.
The advertisement department may have further sub-divisions such as advertisements for local
display, classified advertisements etc. It may also have a research bureau and an art section to
help in the preparation of advertisements. The circulation department deals with the dispatch of
copies to the city and beyond the city through road, rail and air. It may also have a promotional
wing to boost up the circulation of the paper.
Advertising department:
The department is the most important source of revenue for newspapers. The economy of the
newspaper depends heavily on this department. This department looks after the collection and
publication of advertisements. There can be several sections in this department. One section
looks after local advertising, another section looks after classified ads, another section looks
after general/national advertising, another section looks after legal advertising, yet another
section looks after preparing copy and so on.
Circulation department:
The main job of Circulation Department is to increase the circulation and readership of the
newspaper, timely delivery of the newspapers to the readers and collection from them.
MECHANICAL DEPARTMENT
The mechanical department generally is divided into four parts-composing, engraving,
stereotyping and press. In the first, the copy is set into type. The engraving wing is concerned
with photos and drawings and makes cuts for printing. In the stereotyping room, the plates for
the press are cast in the molten metal from the page form. The papers are printed, folded,
trimmed, counted and delivered to the mailing section by the press room. The bigger
newspapers have also separated administrative or coordinating as well as promotional
departments. The administrative department looks after administration of different departments
while the promotional department deals with all the promotional work in respect of
advertisements and circulation. Also it helps to build up the image of the newspaper and
endeavors to earn goodwill and understanding of the clientele (customers).
Printing Department:
This department is responsible for good and attractive printing including installation of
machines, plant layout, composing, processing, loading, scheduling, and maintenance of old
machines and hiring of latest printing technologies.
Administrative Department:
The main task of this department is to administer the different types of work relating to
training, promotion, distribution, liaison with government departments and all those activities,
which facilitate the working of other departments.
Accounting Department:
The primary job of this department is to monitor the accounting work like maintaining books
of accounts, preparing balance sheet and other financial statements, payment, receipt,
preparation of budget, financial management, etc.
Stores Department:
This department maintains the proper storage of newsprint and raw materials used in the
production of a newspaper.
Personnel Department:
This department takes care of all personnel functions from hiring to firing like selection,
training, promotion, compensation, employee welfare, performance appraisal, retirement, etc.
Legal Department:
In small and medium newspapers, generally the legal issues are looked after by the
Administrative Department. But mostly a separate Legal Department exists in a full-fledged
big newspaper.
Public Relations Department:

Like separate Legal Department this department is found mostly in big newspapers. This
department looks after maintaining harmonious internal and external relations.
MAGAZINE DEPARTMENTS AND THEIR FUNCTIONS:
Like newspapers, a full-fledged magazine set-up also consists of Editorial Department,
Advertising Department, Circulation Department, Printing Department, Administrative
Department, Accounting Department, Stores Department, Personnel Department, Legal
Department and Public Relations Department having similar role. But in magazine set-up, the
hierarchy and authority are somewhat different. In magazine set-up there is generally Editor in-
Chief, Deputy Editors Assistant Editors, News Coordinators, Special Correspondents,
Correspondents, Copy Editors, Photographers, Artists, etc.
ELECTRONIC MEDIA ORGANISATIONAL STRUCTURE
Organizational structure refers to the systematic management of the component parts and
positions of an organization. This relates to the timely execution of the allocated work. An
electronic media’s organizational structure specifies its division of work activities, and shows
how different activities are linked. To some extent, it shows the level of specialization of work
activities. It also indicates the hierarchy, authority, structure and relationships in the electronic
media organizations.
The various components of organizational structure include the following:

• Specification of activities,
• Standardization of activities,
• Coordination,
• Centralization and decentralization of decision-making, and
• The size of the work unit
• Specification of activities is simply related to the specification of individual and group

work tasks throughout the organization and the aggression of these tasks into work
units.
• Standardization of activities can be achieved through job description, operating
instructions, rules and regulations, formal programmes, plans and control systems.
• Coordination is related to interlinking and integration of activities in organization.
• Centralization and decentralization of decision-making. Size of the work unit refers to

the determination of personnel in a work group.
ORGANIZATIONAL STRUCTURE OF ALL INDIA RADIO:

All India Radio comes under the Ministry of Information and Broadcasting, Government of
India. The Minister of Information and Broadcasting heads this ministry. A Secretary and four
Joint Secretaries assist the Minister of Information and Broadcasting, in dealing with the
following:
• Policy,
• Broadcasting,
• Financial Advisor, and
• Film.
In order to help the joint secretaries in the execution of above jobs, there are deputy secretaries
and under secretaries also. Radio stations come in all sizes and generally are classified as being
small, medium or large market outlets. The size of the community that a station serves usually
reflects the size of its staff. That is to say, the station in a town of five thousand residents may
have as few as six full-time employees. It is a question of economics. However, some small
market radio outlets have staffs that rival those of rival market stations because their income
warrants it. However, a few small stations earn enough to have elaborate staffs. But the key
word at the small station is flexibility, since each member of the staff is expected to perform
numerous tasks. Medium markets are set up in more densely populated areas and in this type
of station; there are twelve to twenty employees. While an overlapping of duties does occur
even in the larger station, positions usually are more limited to specific areas of responsibility.
Large market stations employ as many as fifty to sixty people and as few as twenty depending
on the nature of their format.
As far as All India Radio is concerned, Director General is the head of the organization. This
being a sensitive post, the requirements include: a wide cultural background, initiative, tact,
administrative ability, sound judgement of men and matters, a deep commitment to
broadcasting and qualities of leadership of a high order. Sometimes, Indian Administrative
Service Officers are assigned an additional task of Director General of All India Radio. This is
somehow not considered to be a healthy trend. However, since independence, there have been
around many I.A.S. officers who have performed the task of Director General of All India
Radio. There are Additional Director General and Deputy Director Generals also who help the
Director General in the discharge of his vast duty. Director of Programmes assists the Deputy
Director General. Other than that a Director whose rank is equivalent to Deputy Director
General heads the News Division. Chief News Editor, News Editor, and Joint Director etc
assist the Director. Moreover, there are Translators, News Readers and Announcers also to
help the News Division. The Engineering Division of AIR is looked after by Engineer-in-Chief
and is assisted by Chief Engineer and Regional Engineers. The Regional Stations of AIR is
under the control of Station Director who is assisted by Assistant Station Directors and
Programme Executives. In addition to that B. G. Verghese Committee has also proposed an
organizational structure for AIR, which is given below:
The committee proposed the creation of the following posts of
General Managers:
• GM Legal Services
• GM Planning
• GM Information
The committee also proposed a Central News Room consisting of following:

• General Manager
• Editor, Akashwani
• Editor, Doordarshan
• Foreign Editor
• Editor Monitoring
It also proposed the five Zonal Executive Boards, which are following:
• Zonal Director
• Controller Doordarshan
• Controller Personnel
• Controller Engineering
• Controller Finance
• Controller Akashwani
• Regional Controller
Moreover, this committee also proposed the creation of the posts of Station Manager,
Accounts and Personnel Officer, Programme Officer, Extension Officer, etc.
ORGANIZATIONAL STRUCTURE OF DOORDARSHAN:

The organizational structures of Doordarshan and All India Radio are more or less the same.
But Doordarshan these days are growing bigger in terms of number of sections, sub-sections
and staff of various kinds. The overall head of all the departments in Doordarshan is the
Director General. The rank of the Director General of Doordarshan is equivalent to that of the
Director General of All India Radio, while earlier it was not the case. Now as far as
Doordarshan organizational services are concerned, there are mainly two departments —
Department of Programme and Administration and Department of Engineering.
➢ The Director General heads the Department of Programme and Administration.

• His main job is to supervise, guide, govern and control the entire functioning of the
department.
• Those who work under the Director General include the Additional Director General
and Deputy Director General (Development), Deputy Director General (News and
Current Affairs), Deputy Director General (Communication and Film), Deputy
Director General (Production and Transmission), and Director (Finance and
Personnel Control).
• The Additional Director General looks after News and Current Affairs, Programme
Policy, Programme Coordination, Planning, Public Relations, etc.
• The rank of Additional Director General is equivalent to that of Joint Secretary, Govt.
of India.
• He is assisted by the Controller of Programme (Policy), Controller of Programme
(Coordination), Controller of Programme (Development), Public Relations Officer, etc.
• The Deputy Director General (Development) looks after the proper and sequence-wise
development of the programme and is supported by Director, Audience Research,
Controller of Programme (Development) and Deputy Controller of Programme.
• The Deputy Director General (News and Current Affairs) looks after the administrative
part of current newsgathering, news selection, news processing, news evaluation and
news presentation.
• He is supported by Chief Editor News, Chief Producer News and News Editor
(Teletex).
• The Deputy Director General (Communication and Film) monitors the entire
communication process of the organization.
• He is assisted by Controller of Programme (Communication) and Deputy Controller of
Programme (Films).
• The Deputy Director General (Production and Transmission) looks after the entire
activities of Production and Transmission and is supported by Deputy Director
Administration in the discharge of his vast duties.
• The Director (Finance and Personal Control), guides, governs and controls the financial
activities and personnel works and in the discharge of his vast duties, Deputy Director
Administration and Senior Analyst support him.
➢ The Department of Engineering is headed by Engineer-in-Chief who is answerable to
the Director General.
• The Engineer-in-Chief is responsible for the growth and maintenance of all the
engineering and technical activities.
• In the discharge of his enormous duties, he is assisted by Chief Engineer
(Project and Budget) and Chief Engineer (Maintenance and INSAT).
• The Chief Engineer (Project and Budget) supervises and prepares various
projects and budgets and is supported by Director Engineering (Study Design
Coordination with ISRO and P&T), Director Engineering (Teletext), Director
Engineering (Purchase), Director Engineering (Progress and Budget), Director
Engineering (Estimates and NLF) and Director Engineering (Transmitter
Design).
• In addition to that there is a large number of staff in Doordarshan which are
directly associated with pre-production, production and post-production.
• These staff members are: Programme Producer, Programme Executive, Video
Engineer, Vision Control Operation, Lighting Engineer, Cameraman, Vision
Mixer, Studio Engineers, Make up Supervisors, Script Designer, Programme
Assistant, Production Assistant, Audio Control Manager, Mic Boom Operator,
and Script Writer, etc.
ORGANIZATIONAL STRUCTURE OF PRIVATE TV CHANNELS:

The organizational structures of different private TV channels are not the same. Some of them
are more hierarchical and some of them are structured differently. But broadly speaking a
private TV channel has the following organizational structure:
• Chairman
• Chief Executive Officer
• Managing Director
• President
• Senior Vice-President
• Vice-Presidents
• Director
• Technical Director
• News Director
• News Editor/News Coordinator
• Chief of the Bureau
• Programme Producer
• Programme Executive
• Video Engineer
• Vision Control Operator
• Lighting Engineer
• Cameraman
• Vision Mixer
• Studio Engineers
• Make-up Supervisors
• Script Designer
• Programme Assistant
• Production Assistant
• Audio Control Manager
• Mic Room Operator
• Script Writer
• Researcher
• Performer/Artist
The Chairman, the Chief Executive Officer, the Managing Director, The President, Senior
Vice- President and the Vice-Presidents belong to the Administrative Department. This
department directly or indirectly controls guides and governs all other departments, sections,
sub-sections and staff.
CHAPTER- 2
Ownership Patterns of Media Organisations
The media that exists in our Country is heavily influenced by the ownership form it takes. There
are a number of factors – such as content distribution, profits etc. There exist some very basic
ownership Patterns.
Individual Ownership Pattern – In this kind of partnership, the Individual has control, which
allows him to take decisions for the company. Therefore, he takes responsibility for all the Policy
– making decisions and is also accountable for them. It is best suited for small-scale media
houses, be it newspaper or news channel. An example of this are the Local Evening Newspapers
that usually follow this kind of ownership control. The News Today is a daily English
Newspaper that is printed out of Chennai. It covers news, politics, economy and travel.
Advantages
In this kind of ownership, power comes in the form of individual and absolute control, which
gives the person more secrecy in options. Along with it, the individual can make decisions at his
own pace (which is usually fast) and is naturally more connected with the content and the
newspaper.
Disadvantages
However, the secrecy stops the employees from any kind of democratic participation. The owner
becomes liable for the debts and losses and the rate of success depends entirely on his ability.
There is less scope for expansion and unlimited responsibility.
Partnership Ownership Pattern - As per the Partnership act 1932, Partnership is defined as ‘
the relationship between persons who have agreed to share profits of a business carried on by all
or any of them acting for all. The minimum limit is 2 partners while the maximum is set to 20
partners. There are 2 kinds of partnership – General and Limited. In India, Red Chilies
Entertainment is an example of Partnership. It is a motion picture production and distribution
company, it is headed by Shah Rukh Khan and Gauri Khan and operates under various divisions
like Film Production, VFX, Television shows, TVC production and the IPL Team, KKR. Sanjiv
Chawla is the executive producer while SRK and Gauri are the chairman and chairwoman
respectively. Venky Mysore took over the CEO a few years back.
Advantages
In this kind of partnership, responsibility, maintenance and operation cost can be divided.
People with different talents come together and pitch in their ideas and solutions which helps in
the growth of the company and also sets a democratic environment for all.
Disadvantages In a partnership, selfish motives of a partner might harm the firm. Lack of unity
and misunderstandings might lead to losses after which each partner will have to incur and pay
back his share of debt. Also, there are chances of a partnership/ business getting discontinued
after the death of any partner.
Corporation – It is the one of the most common forms of ownership pattern. The minimum
numbers that can be a part of it are 5. It is an association of individuals under the authority of the
law, which has a continuous existence independent of the existence of its members and powers
and liabilities distinct of its members. The BBC group is an example of a corporation. They are
spread across web portals, television and radio. Increasing capital can easily expand operations
and transfer of control is flexible. However cooperation taxes are imposed
Group/ Chain Ownership – This form of ownership is when two or ore same mediums are
handled by the same organization. They are formed without a common holding but with a chain
of command. Hindustan has 13 editions that are printed in Hindu, under HT Media. Aaj Tak and
Headlines Today are two different channels but are held under the same organization i.e. India
Today group. The advantages of this kind of partnership are that financial, administrative and
human resources can be centrally managed. Because of this cost of production becomes low due
to best possible utilization of resources – this adds to better training, work environment and more
facilities being provided. However, permanence of management is always in question because
management is divided.
Employee Ownership Pattern - In this form of Partnership, employees own a major part of the
share. They are also responsible for the decision- making. E.g.: Community Media like the
Bangalore based advocacy group VOICES organized a gathering of community radio
stakeholders. During the inception 1996, a group of radio broadcasters, policy planners, media
professionals, and non-profit groups joined hands to study how community radio could be
relevant to India and what policies were needed. They wanted All India Radio to allocate an hour
of airtime each day to community broadcasting
Advantages
In this, Employee issues can be solved faster and it becomes easier to break interdepartmental
barriers. Also, the sense of ownership that the employees own helps the organization to grow
faster.
Disadvantages
However, it gets difficult to induct new people and employees tend to get more preference than
the benefit of the organization. It also becomes difficult to take quick decisions.
Vertical Ownership Pattern- In this, an organization owns or operates different media

enterprises or some other enterprise under the same ownership. E.g: India Today Group, Living
Media or Big Media-Reliance group. The India Today Group has Mail Today, Business Today,
Aaj Tak and Headlines Today under itself – making it a combination of magazines, newspapers
and TV Channels, yet they still fall under the same ownership i.e. the India Today Group.
Advantages
It helps to promote different enterprises at the same time and reduced general expenses.
Disadvantages
In this management may not be able to devote sufficient time to any one particular media. Also,
since the capital is invested in all media forms, a particular media form might not get the
attention that it ought to.
Prevalent Ownership Pattern - The 3 types of prevalent ownership patterns are Conglomerate,
Company and Trust.
1. Conglomerate ownership Pattern – It is a combination of two or more companies engaged

in different business that fall under one corporate structure. A Media Conglomerate is a multi
industry company that owns a large number of companies in various media such as TV, Radio,
and Internet etc.
Examples are Viacom, Living Media Ltd., The Walt Disney Company, Bennett Coleman & Co.
Ltd. Etc. Viacom is the fourth largest conglomerate in the World after the Walt Disney, News
Corporation and Time Warner. Viacom has its assets in Nickelodeon, Paramount pictures, MTV,
Comedy Central, VH1 etc. Reliance Industries Limited are also an example of one of the most
famous conglomerates in India.
Advantages
The Diversification results in reduction of investment risk and creates an internal capital market.
Also, the downturn suffered by one subsidiary can be counterbalanced by another.
Disadvantages
However a lack of focus and culture clashes can destroy the value. This form tends to have extra
layers of management, which increases the cost.
2. Company Ownership Pattern - In this type of ownership, the company owns the media. The
same company tends to have listed shares in the share market. For eg: HT media has shares in
BSE, NSE, KK Birla Group has 69% stake in HT Media, HT manages newspaper, radio etc.
similarly, Reliance has a stake in GBN(Global Broadcast News) which operates the English
channel CNN-IBN and Hindi channel IBN7.
3. Trust ownership Pattern - A trust is a relationship whereby property (real or personal,

tangible or intangible) is held by one party for the benefit of another. An example of this is the
The Tribune Trust. It was founded on 2nd February 1881 by Mr. Sardar Singh Majithia and is
run by a trust comprising of 5 trustees. It enjoys worldwide circulation and publishes 2 other
newspapers also – The Punjabi Tribune and Dainik Tribune. This kind of partnership focus more
on welfare and not on profit making.
Advantages of this ownership pattern are that it focuses on real news rather than
sensationalizing it. There are also not too many people which result in lesser clashes and more
harmony. However, they might face a shortage of funds. Sometimes, it also takes time to reach
the masses, as they don’t indulge in promotional activities.
Newspaper Ownership in India

The Indian media market differs from those of developed countries in several ways. For one,
India is a developing country and all segments of the media industry (including print and radio)
are still growing unlike in developed countries. The media market in India remains highly
fragmented, due to the large number of languages and the sheer size of the country.
If the present trend of cross media, conglomerate and vertical integration ownership continues,
monopolization will result which will ultimately lead to the phenomenon of suppression not
only of media freedom but also of the unbiased presentation of various points of view. Most
media companies in India and abroad are integrating vertically to sell cross-media, often
acquiring or building multimedia platforms. News Corp.’s Star TV India and Sun TV Network
Ltd already own DTH and cable distribution platforms. Star’s cross-media India operations
include television channels, Internet offerings, radio, mobile entertainment and home video
(incidentally, 11 cable distribution companies provide some 400 television channels in India).
Sun Network has 14 TV channels in four states, cable assets, four magazines, radio stations and
two newspapers. In Tamil Nadu, the dominance of Sun in cable and satellite TV (channels and
distribution network) and now in the DTH market is quite visible. Sun TV and its cable company
are known to simply blackout political telecasts by rival Jaya TV.
Conclusion
The mass media in India is possibly dominated by less than a hundred large groups or
conglomerates, which exercise considerable influence on what is read, heard, and watched. One
example will illustrate this contention. Delhi is the only urban area in the world with 16 English
daily newspapers; the top three publications, the Times of India, the Hindustan Times, and the
Economic Times, would account for over three-fourths of the total market for all English dailies.
Further, the report calls attention to the fact that all restrictions on vertical integration are
currently placed on companies. The large conglomerates of the Indian media are usually groups
that own different companies. This allows them to have controlling stakes both in broadcasting
and distribution by acquiring licences under their different subsidiary companies, thus totally
bypassing current restrictions and defeating the purpose of their existence in the first place. The
report, therefore, suggests that restrictions no longer be placed on “companies” but on “entities”
or groups, which would include large groups and conglomerates such as BCCL and Dainik
Bhaskar.
Chapter-3
Cross Media Ownership and Conglomerates: Case Studies of Times Group

and Reliance Communication
Cross Ownership in Media Industry
Media businesses supply chain includes the following categorizes - carrier (medium), content
(production) and distribution (platform). Carriers are television, radio, film, and mobile, the
Internet, newspapers and magazines. Content is typically the software—different genres of
programmes for various mediums. Distribution is the carriage services that deliver content,
including cable networks, direct-to-home (DTH) and Internet service providers. All these
operations are heavily technology driven and are resource & capital intensive projects.
Increasing commercialization of Indian media with the entry of multinational media corporations
and large investments of domestic media companies has given a silver spoon to the expansion
phase. Inter-corporate investments and interlocking of directorships between media companies
are also clearly emerging. Due to limited information on revenue patterns of media groups,
especially Private players, creates hurdles to getting a handle on media dominance and any
emerging media monopolies.
Accumulation of ownership interest across the various carriers such as television, radio or print;
consolidation, including upright combination among media operations of content, carrier and
distributor within a media segment such as television or radio; and market share dominance in a
given geography within each media segment.
Media business can be run only with advertising and subscription to meet the expenses and
certainly it is not a tool for social reforms. Media conglomerates are largely run for business
interests and not specifically for any ideology, commercial aspect of media are just not ignorable
in capitalist market.
As per Arguments raised by marketers, Cross ownership Pattern might be a case of just ‘market-
oriented’ competition but keeping in view the current practices and growing shared interests
among corporations, it does not indicate a healthy sign. Absence of any cross-ownership law has
fostered market forces to run for dominance and monopolization
Media companies in India and abroad are integrating vertically to sell cross-media, often
acquiring or building multimedia platforms. News Corp.’s Star TV India and Sun TV Network
Ltd already own DTH and cable distribution platforms. Star’s cross-media India operations
include television channels, Internet offerings, radio, mobile entertainment and home video.
Sun Network has 14 TV channels in four states, cable assets, magazines, radio stations and
newspapers. In Tamil Nadu, the dominance of Sun in cable and satellite TV (channels and
distribution network) and now in the DTH market is quite visible. Sun TV and its cable company
are known to simply blackout political telecasts by rival Jaya TV.
Realizing the leverage provided by media, the Dravida Munnetra Kazhagam government has
taken steps to start its own channels and even a government cable network. Similarly, realizing
the dominance of the Eenadu group, the Congress government in Andhra Pradesh, in the form of
the son of state chief minister Y.S.R Reddy, went all out to break this monopoly by starting a
newspaper—Sakshi—and a television channel, besides promoting a few magazines.
Considering the complexity and controversial nature of ownership issues, the immediate
attention is required to understand the sensitivity from Industry & Viewers pattern. Most
importantly, any restrictions on media ownership must be defensible on grounds of public
interest, with particular reference to media diversity and plurality.
With combination of diverse cultural, lingual and social settings in our country, it may be
difficult to visualize conditions of cross media ownership dominance leading to market
monopoly. In India, there is no general policy on ownership and cross-media restrictions, as far
as restrictions between print and electronic media are concerned. Debating on regulatory issues
for cross-media ownership the Industry & TRAI have long-term implications for the critical and
booming Indian media industry.
A further type of linkage more clearly associated with horizontal than vertical integration is
Cross Ownership or Cross Media Ownership. Cross Ownership of media companies refers to
companies that own more than one type of Media Company. For ex: More than one of a
Television Station, a Radio Station, A newspaper, A magazine publisher, a book publisher, a
cable company or a telephone company in one specific market. Cross Media ownership is the
form most often legislated against in broadcasting legislation. This effectively prevents firms
controlling access to information through a number of different channels.
'CONGLOMERATE'
In a conglomerate, one company owns a controlling stake in a number of smaller companies,

which conduct business separately. Each of a conglomerate's subsidiary businesses runs
independently of the other business divisions, but the subsidiaries' management reports to senior
management at the parent company. The largest conglomerates diversify business risk by
participating in a number of different markets, although some conglomerates elect to participate
in a single industry.
These are the two philosophies guiding many conglomerates:
1. By participating in a number of unrelated businesses, the parent corporation is able to reduce

costs by using fewer resources.
2. By diversifying business interests, the risks inherent in operating in a single market are
mitigated.
The last type of linked ownership is the Conglomerate, which combines a variety linkage usually
inclusive of horizontally and vertically integrated companies and sometimes cross ownership of
the companies that operate in different markets. Two types of conglomerates can be
distinguished, The Media conglomerate and a more general or Non- Media conglomerates. The
Media conglomerates does the majority of its business in the media, the general or non-media
conglomerates has its foundations in non-media firms. For ex: The Thomas Corporation is first a
media Conglomerate but also has holdings in other fields such as travel and retaining.
CASE STUDIES
TIMES GROUP
Bennett Coleman & Company Limited also known as The Times Group is India’s one of the
largest media conglomerates with 45 dailies and periodicals in 3 languages and 108 editions
being published from 9 different centers of the country. The company has more than 50 offices
in the country and more than 55 websites. Also, it has various news and entertainment channels.
The company also provides education solution and has its own university. The company engages
in businesses such as movies, music, syndication, education, financial services, real estate, event
management and specialized publications. In terms of media business, BCCL operates television
channels, radio and digital content production and it also publishes magazines, books, and
newspapers.
The company was founded on 4th November 1838 when it started its publication of Bombay
Times and Journal of Commerce which is now The Times of India. In 1892 the English
Journalist Thomas Jewell Bennett, and Frank Morris Coleman set up a joint stock company
Bennett Coleman & Company Limited to acquire the newspaper. In 1946 the company was
bought from its British owners by industrialist Ramakrishna Dalmia. Subsequently, his son-in-
law Sahu Shanti Prasad Jain took over the company. Since then, the company is fully owned and
operated by the Jain Family.
Key facts
For Vineet Jain, a 173-year history is just that - the past. Bennett, Coleman & Company Ltd, like
any business which is that old, should be a treasure trove for anecdote bounty hunters. The
Managing Director of BCCL, the publisher of newspapers such as The Times of India and The
Economic Times, is focused on the present. "Sure you can trace us back, but I am more
concerned about what people want today."
That is the cue for this correspondent to quickly sift through the chronology. The Rs 5,500-crore
empire that BCCL is today started as the twicea-week The Bombay Times and Journal of
Commerce, owned by a set of 11 British firms, two barristers and a doctor, and aimed at the
business community in Bombay. Information made for a buzzing industry those days in India's
trading capital and the paper went through two buyouts, two amalgamations (the second resulted
in The Times of India in 1861), and one restructuring in about 50 years.
By 1902, with a strong national character embedded in The Times of India, BCCL - the name
was taken 10 years earlier - moved into an office at Bori Bunder, opposite what is today the busy
Chhatrapati Shivaji Terminus. The company's history records this as its third office after starting
off at Parsi Bazaar, a busy street in the Fort area, and a Churchgate building that the company
decided to move from after the ceiling fan collapsed in partner and editor T.J. Bennett's office.
The Jain family came into the ownership of BCCL long years later in 1948 when Sahu Shanti
Prasad Jain, current managing director Vineet's grandfather, bought the firm from his father-in-
law Ramakrishna Dalmia, who had paid Rs 2 crore two years before to buy out BCCL's owners.
The paper was distinctly nationalistic those days, reflecting the euphoria after India's
independence.
It was not until 1987 that BCCL, a sleepy company like most Indian media businesses of the
time, was shaken up: when Samir Jain, Vineet's elder brother by 11 years, took charge as Vice
Chairman; their mother Indu Jain chairs the company.
Samir took a leaf out of the consumer goods business - "a newspaper should be sold like a bar of
soap" - brought smarts into marketing TOI, as The Times of India is popularly called, never
before seen on the Indian print media landscape. But his invitation price of Rs 1.50 daily (most
papers sold at twice that), which punched rivals where it hurt in 1992, can be traced back in
BCCL history books. In 1907, just after the newspaper decided to extend news deadlines to
midnight from 5 pm earlier, the management cut the newspaper's price to one anna from four
annas (16 annas made a rupee). Circulation rose five times. Samir's decision in 1992 resulted in
home subscriptions jumping five-fold, too.
Established in 1838
1838: The Bombay Times and Journal of Commerce starts as a bi-weekly

newspaper and becomes a daily 12 years later
1890: After a few mergers and name changes, The Times of India is born,
and is bought by Henry Curwen in partnership with Charles Kane
1892: After Curwen's death, T.J. Bennett becomes editor. The Bennett,
Coleman and Co. Ltd, or BCCL, is formed
1907: In the first of its price wars, The Times of India cuts price from four
annas to one anna. Its circulation rises five times
Ramkrishna Dalmia
1934: Seth Ramkrishna Dalmia buys out BCCL for
Rs 2 crore; sells it to son-in-law Sahu Shanti Prasad
Jain two years later
1940: For the first time, TOI publishes news items

on its front page
1961:The Economic Times is launched
Samir Jain
1987: Samir Jain takes charge as Vice Chairman of
BCCL
2004: Launches Times Private Treaties, an equity

initiative for ad inventory. Enters TV business with
lifestyle and entertainment channel
2006: Launches TV news channel Times NOW; follows with business

channel ET NOW in 2009
2010: Launches ET Wealth; Movies NOW, India's first HD-only premium

movie channel; relaunches the Sunday ET as a tabloid
Other tactics, which rivals sourly call guerilla ambushes, were discount coupons for classifieds,
realigning space selling departments to sharply focus on advertiser interests, "combo offers" both
for advertisers and newspaper buyers, and product sampling. In expanding its reach, BCCL has
been panned by the intelligentsia on two decisions: "dumbing down" the content of its flagship
newspapers to reach to a wider audience and violating Chinese walls between advertising and
editorial.
Medianet, a vehicle that offered advertising-like rate cards for editorial content in lifestyle
supplements of TOI, and Private Treaties that bartered advertising space in return for equity in
client companies (typically, start-ups or mid-cap firms) came in for a good deal of flak. "Almost
all publications indulge in it," says Vineet about the Medianet deals. "We were upfront about it,
and this is reserved for lifestyle. At no point is our editorial judgment swayed.''
Admire it, or hate it, BCCL has made itself virtually invincible. "You have to hand it to them for
thinking, behaving and acting like leaders in every sphere," says Nitin Jain, former director,
Times Group, whose mandate was also to drive Medianet as head of the group's division called
Optimal Media Solutions. "Call them bullies, perpetrators of monopoly, shrewd manipulators…
whatever, but fact is that everyone follows standards set by them in print.'' Nitin, not related to
the Jains of BCCL, today runs Domor Communication, a consulting outfit.
Its ability to set prices for advertisers comes from its dominance in virtually every product it
runs. The Economic Times newspaper, for instance, brings in revenues of over Rs 500 crore for
BCCL. In comparison, Mint - ranked No. 2 by audited readership among financial dailies and
part of rival HT Media, the publisher of Hindustan Times - makes under Rs 80 crore.
Nehru peers at The Times of India with Indira Gandhi at his side
And that is just the print play. BCCL, as a group, has been an early mover
online and in radio too. A late entry in television has seen it miss out on
opportunities that others have captured in general entertainment, but it
has clawed its way into electronic media with its channels Times NOW
and, more recently, ET NOW and Movies NOW.
So what could be a worry for the company in the coming quarters? The immediate future could
be challenging for BCCL, which is setting a target of doubling its revenues in about four years,
according to Ravi Dhariwal, CEO, Times Group. It is early days yet, but the English newspaper
market will saturate, especially in big Indian cities. The growth will come from smaller cities as
advertisers look for a media vehicle to reach consumers there, but running smaller print-runs is a
less-profitable proposition.
Rajiv Gandhi commemorates its 150 years

The group is yet to fully take on the might of Dainik Jagran and
Dainik Bhaskar in the vernacular media market. Still, some like
Rajesh Sawhney, President, Reliance Entertainment, believe the
alarm bells are not going off yet. "But if they need to remain uncontested, then at least 50 per
cent of their revenue has to come from non-print areas,'' he says, up from the current one-quarter.
Sawhney was earlier the chief operating officer of Times Internet.
Vineet, 45, who has been driving BCCL's online business, has some answers. "I keep telling my
people that you may be earning your revenues from print, but it is actually the digital space that
you are here for, it will be your salvation,'' he says. A global footprint, while attractive given how
media businesses are bleeding globally, is not a worthwhile pursuit yet for the group. "We have
to focus here, where there is demand. We can always scale up later and consider inorganic
options such as acquisition if there is a need,'' he says.
On January 22, 2004, Vineet Jain, managing director of the Times of India, entered his office
smiling. He had just signed a joint operating agreement with Dow Jones & Co. to publish the
Wall Street Journal for India. The Journal would be published 5 days a week, with Dow Jones
owning 26% – the maximum allowed by foreign ownership laws – and the Times of India,
owning 74% of the new venture. The content would focus on Indian readers and tap into the
global resources of the Wall Street Journal. Additionally, the editor named was Suman Dubey, a
nationally recognized Indian journalist.
This marked a major accomplishment for the both the Times of India and the country as a whole.
The presence of a customized Wall Street Journal for India validated its growth and economic
importance worldwide, a sentiment noted by Peter R. Kann, chairman and CEO of Dow Jones,
who said in a press release: “India is a vibrant and growing part of the global economy, and we
look forward to playing an increased role in charting – and spurring – that growth.” Jain himself
echoed these comments, stating:
The joint venture comes at a moment when India is poised to become a global player across a
range of industries: from software outsourcing and entertainment, to pharmaceuticals, textiles
and automobile components. As Indian companies, investors and consumers begin to think
beyond the geographical boundaries, the need for global information and perspective will grow.
We believe that the venture fits in perfectly with the emerging needs of the time.
Indeed, the future seemed bright for The Times of India.
Bennett, Coleman & Company
Bennett, Coleman & Co. is India’s largest media group, and owns several different media
channels. It first published the Bombay Times and Journal of Commerce, later known as the
Times of India, in 1838. Originally a British operation, the company has been under the
leadership of the Jain family for 50 years. Vineet Jain is the third generation of his family to run
Bennett, Coleman, and many of his family members play key roles in the business.
The American, and to a large extent worldwide, newspaper industry has experienced a slow
decline in the past decade. Investors classify it as a mature industry and both circulation and
advertising dollars have diminishing returns. But the Times of India is one of the papers to have
bucked this trend, having grown 17% in the last five years, and becoming the largest English-
language broadsheet in the world.
Bennett, Coleman’s holdings include:
• The Times of India – Their flagship product and the world’s largest English broadsheet
daily, with a circulation of 2.2 million copies nationwide daily and readership of 4
million.
• The Economic Times – India’s most widely read financial paper and the second largest
English business daily newspaper with a circulation of 400,000.
• Femina – Magazine for the modern Indian woman. Femina organizes the Miss India
pageants, the national feeder for Miss Universe.
• Filmfare – Magazine about the Indian film and entertainment industry (Bollywood).
• Navbharat Times/Sandhya Times – The nation’s leading Hindi daily newspapers.
• Times FM – The largest FM broadcaster in five Indian cities, with an audience of over 7
million people.
• Internet – Websites of their publications as well as a media portal.
• Planet M Retail – Music and entertainment store.
• Times Music Label – Indian and International music.
• Other TV Outlets
• Movies Now
• Movies Now HD
• MNX
• MNX HD
• Romedy Now
• Romedy Now HD
• Times Now
• ET Now
• Mirror Now
• Zoom
• Other Radio Outlets
• Radio Mirchi 98.3
• Other Online Outlets
• https://www.timesnownews.com/
• https://www.timesnownews.com/business-economy
• https://www.timesnownews.com/mirror-now
• https://www.youtube.com/user/ETnow
• https://www.youtube.com/channel/UC6RJ7-PaXg6TIH2BzZfTV7w
• https://www.youtube.com/channel/UCWCEYVwSqr7Epo6sSCfUgiw
RELIANCE COMMUNICATIONS
Reliance Group is among India's top private sector business houses serving over 250 million
customers across telecommunications, power, financial services, infrastructure, media and
entertainment, and healthcare sectors.
Founded by the late Shri Dhirubhai Ambani (1932-2002), the Reliance Group positively
influences the lives of one in every 5 aspiring Indians across more than 25,000 cities and towns
and 400,000 villages.
The Reliance Group strongly believes that it has a pivotal role to play in shaping the destiny of
our great nation. Through its various consumer-facing businesses, the Group provides a robust
platform to every Indian to realize his/ her potential through its state-of-the-art products and
services.
The Group enjoys the unparalleled trust, faith and confidence of its customers, and is one of the
largest employers in the country with a young, highly-trained and motivated workforce, with an
average age of 35 years.
The Reliance Company commercially launched its services on 5 September 2016. Jio crossed
100 million subscribers till end of February 2017. This is the fastest ramp-up by any mobile
network operator anywhere in the world. Jio owns spectrum in 800 MHz and 1,800 MHz bands
in 10 and 6 circles, respectively, of the total 22 circles in the country, and also owns pan-India
licensed 2,300 MHz spectrum. The spectrum is valid till 2035. The company has a network of
more than 250,000 km of fiber optic cables in the country, over which it will be partnering with
local cable operators to get broader connectivity for its broadband services. With its multi-
service operator (MSO) licence. Jio offers its not only 4G broadband services but also provides
data, network, instant messaging, live TV, movies on demand, news, streaming music, digital
payments platform and free Wi-Fi hotspot services etc.
LYF Smartphones
Jio tied up with domestic handset maker Intex to supply 4G handsets enabled with voice over
LTE (VoLTE) feature. Jio launched its own smart phone series with Earth, Water 1& 2, Wind
and Flame through its chain of electronic Reliance retail outlets.
Induction of Multimedia apps
R-Jio launched a bundle of multimedia apps on Google Play as part of its 4G services. While the
apps are available to download for everyone, a user will require a Jio SIM card to use them.
Additionally, most of the apps are in beta phase Following is a list of the apps.
MyJio - Manage Jio Account and Digital Services
• associated with it. JioTV - A live TV channel service.
• JioCinema - An online HD video library.
• JioChat Messenger - An instant messaging app.
• JioMusic - A music player.• Jio4GVoice (earlier JioJoin) - A VoLTE phone
• simulator JioMags - E-reader for magazines
• JioXpressNews - A news and magazine aggregator
• JioSecurity - Security app
• JioDrive - Cloud-based backup tool
• JioMoney Wallet - An online payments/wallet app
• JioSwitch - Transfer content
• Jiofi -Wireless router• 4.
The present scenario in the Indian telecom sector can be better analysed by suing Michael
Porter’s Five Force Model.
Threat of New Entrant - RJio’s impact on its competitors
The entire Indian telecom sector redesigned by the new aggressive entrant of free R-Jio. The
Reliance announcement of its free offers creates drastic changes not only on its rivalry
competitors but also on subscribers, power of suppliers, power of buyers and threat of
substitutes. Here we can apply the Porter’prophets in Indian telecom market. Major market
leaders Airtel, Idea and some others ready to dig new strategies to attack and protect by
themselves. It is a time for structural alters exists. RJio strategies. As the Jio works only with 4G
mobile, the impact of Joi on the competition in the segment of feature phone users is absent.
However, Jio has come up with a device that upgrades 3G mobile to function 4G services. Jio
competes even in the 3G mobile user segment.
Competitive rivalry Customers
Reliance Jiolow switching cost intensifies the competition in the industry. Price sensitivity of
customers also adds to this. Telecom sector in India is almost saturated. Almost every household
possess a mobile network. In this case, every rival is fighting for the same share. There is no
market left for new entrants. New entrant Jio must get significant share only from the
competitors. This maximizes the rivalry in the industry. Exit barriers are also found in the
industry. Hence, the players must fight aganst major competitor till the end.
Threat of substitutes
Hardly there are no substitute products for mobile services in the industry. Hence the impact
of substitutes is insignificant in this case.
Bargaining power of buyers
Bargaining power of buyers will be a major force in the industry. Customers are exercising high
bargaining capacity. The reasons for high bargaining power of buyers would be switching cost is
very low. Customers can switch their service through the option ‘port’ without changing their
number. Customers in this industry is observed to be price sensitive. Therefore, customers expect
superior quality service at lower cost. This made mobile giants Airtel and Idea to slassh their
tariff nearly 40%. Eventually it adverselyaffect industry profitability. Also become threat to the
new entrant.
Bargaining power of suppliers
Being supplier of mobile services such as messaging, calling, data and other value added
services, the players have less bargaining power with the customers. This force the players to
offer better services at reasonable price.
The table 1: Shows the current market share of mobile service operators in India as on 16th
February 2017.
Rank Name of the Subscri Active Ownership

operator bers (In Subscribers
million)
1 Airtel India 263.09 96.83% Bharti Enterprises 64%

Sing Tel 36%
2 Vodafone India 209.90 94.84% Vodafone Group
Aditya Birla Group 49.05% Axiata
3 Idea Cellular 190.52 94.26% Group 19.96%
Provident Fund 10.09%
4 R-Jio 98.93 100% Reliance Industries
5 BSNL-Mobile 94.95 78.11% State- Owned
6 Aircel 90.34 69.94% Maxis communications 64%

Sindiya securities 36%
7 RCom 86.16 87.28% Reliance ADAG
8 Tata DoCoMo 55.70 82.23% Tata Teleservices 76%

NTT Docomo 24%
9 Telenor India 53.02 82.23% Telenor Group
Sistema 56.68%
10 MTS India 6.71 64.51% Shyam Group 23.98%
Govt.of Russia 17.14%
11 MTNL 3.61 64.79% State-Owned
Source: https://en.wikipedia.org/wiki/List_of_telecom_companies_in_India
The table 1.1 shows that Airtel is in leading position with 263 million subscribers. Followed
by Vodafone (209) and Idea (190). Jio occupies the 4th position with 99 million subscribers.
Though Jio is at 4th position, in terms of pricing Jio posing a challenge to the market leaders.
It is already noticed that the customers are price sensitive in India, after 31 st march 2017 Jio is
no more free service. So, it is too early to judge the customer base of jio. Jio tariff plans will
decide the number of customers will be active with Jio. The price of data of Jio is relatively
cheaper. This element making Airtel and Idea to think various strategic alternatives. Since the
exit barriers are present in the industry, they can not get out of the industry. It will be too
difficult for small players in the industry to make a significant market share. The only option
to become more stronger to compete with Jio is to make strategic alliances with other
competitors. Airtel merges with Telenor India and Idea with Vodafone. Airtel and Telenor
together will have 316 million subscribers, while Idea and Vodafone together will have 400
subscribers and lead the market.
Conclusion
Reliance Jio’s free introducing offer creates lot of radical and unexpected changes in
consumer’s behaviors and competitor’s strategies. The impact of this new entrant affects
equilibrium in the mobile industry and makes rivals vulnerable that they resort to mergers and
acquisitions in Indian mobile network providers. Since the exit barriers are present in the
industry, they can not get out of the industry. It will be too difficult for small players in the
industry to make a significant market share. The only option to become more stronger to
compete with Jio is to make strategic alliances with other competitors The major giants in the
industry viz, Airtel and Idea strategically responding in a similar way. To strengthen
themselves in the industry, Airtel and Idea acquiring Telenor and Vodafone respectively.
Chapter-4
FDI in Indian Media and Entertainment Industry

Introduction
The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is
making high growth strides. Proving its resilience to the world, the Indian M&E industry is on
the cusp of a strong phase of growth, backed by rising consumer demand and improving
advertising revenues. The industry has been largely driven by increasing digitisation and higher
internet usage over the last decade. Internet has almost become a mainstream media for
entertainment for most of the people.
The Indian advertising industry is projected to be the second fastest growing advertising market
in Asia after China. At present, advertising revenue accounts for around 0.38 per cent of India’s
gross domestic product.
Market Dynamics
Indian media and entertainment (M&E) industry grew at a CAGR of 10.90 per cent from FY17-
18; and is expected to grow at a CAGR of 13.10 per cent to touch Rs 2,660.20 billion (US$
39.68 billion) by FY23 from Rs 1,436.00 billion (US$ 22.28 billion) in FY18. India's media
consumption has grown at a CAGR of 9 per cent during 2012-18, almost nine times that of US
and two times that of China. The industry provides employment to 3.5-4 million people,
including both direct and indirect employment in CY 2017.
India's online gaming industry is expected to grow at a CAGR of 22 per cent between FY18-23
to reach Rs 11,900 crore (US$ 1.68 billion) in FY23
India’s advertising revenue is projected to reach Rs 1,232.70 billion (US$ 18.39 billion) in FY23
from Rs 608.30 billion (US$ 9.44 billion) in FY18.
Recent development/Investments
The Foreign Direct Investment (FDI) inflows in the Information and Broadcasting (I&B) sector
(including Print Media) in the period April 2000 – March 2019 stood at US$ 8.38 billion, as per
data released by Department for Promotion of Industry and Internal Trade (DPIIT).
• Dailyhunt, a regional language news aggregator run by Verse Innovation Pvt Ltd, will
receive investment of US$ 60 million in a new funding round led by Goldman Sachs
Investment Partners.
• As of September 2018, Twitter announced video content collaboration with 12 Indian
partners for video highlights and live streaming of sports, entertainment and news.
• As of August 2018, PVR Ltd acquired SPI Cinema for worth US$ 94.42 million.
• In H12018, 5 private equity investments deals were recorded of worth US$ 115 million.
• The Indian digital advertising industry is expected to grow at a Compound Annual
Growth Rate (CAGR) of 32 per cent to reach Rs 18,986 crore (US$ 2.93 billion) by 2020,
backed by affordable data and rising smartphone penetration.
• India is one of the top five markets for the media, content and technology agency
Wavemaker where it services clients like Hero MotoCorp, Paytm, IPL and Myntra among
others
• After bagging media rights of Indian Premier League (IPL), Star India has also won
broadcast and digital rights for New Zealand Cricket upto April 2020.
Government Initiatives
The Telecom Regulatory Authority of India (TRAI) is set to approach the Ministry of
Information and Broadcasting, Government of India, with a request to fastrack the
recommendations on broadcasting, in an attempt to boost reforms in the broadcasting sector. The
Government of India has agreed to set up the National Centre of Excellence for Animation,
Gaming, Visual Effects and Comics industry in Mumbai. The Indian and Canadian Government
have signed an audio visual co-production deal to enable producers from both the countries
exchange and explore their culture and creativity, respectively.
The Government of India has supported Media and Entertainment industry’s growth by taking
various initiatives such as digitising the cable distribution sector to attract greater institutional
funding, increasing FDI limit from 74 per cent to 100 per cent in cable and DTH satellite
platforms, and granting industry status to the film industry for easy access to institutional
finance.
Road Ahead
The Indian Media and Entertainment industry is on an impressive growth path. The industry is
expected to grow at a much faster rate than the global average rate.
Growth is expected in retail advertisement, on the back of factors such as several players
entering the food and beverages segment, e-commerce gaining more popularity in the country,
and domestic companies testing out the waters. The rural region is also a potentially profitable
target.

MME Unit - I

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MME Unit - I

Uploaded by

Copyright:

Available Formats

MEDIA MANAGEMENT AND ENTERPRENEURSHIP

Some of the prominent media organisations which operate in India are:

• Maintenance of records about the newspapers published.

• To collect and collate basic information on matters of national significance.

6. Press Council of India: It was established in 1966 by Parliament on the Recommendation of

8. Government Run Film Media Organisation:

b) Central Board of Film Certification: Central Board of Film Certification (CBFC) is a

c) National Film Development Corporation (NFDC): It is a central agency established to

9. Government Publicity Organisations: There are several Government supported

a) Directorate of Advertising and Visual Publicity (DAVP): It performs the functions of

13) Media Organisation For Journalist/ Professional Bodies in Journalism

14) Advertising and Public Relation Bodies

c) Advertising Council of India: It is a volunteer association of advertisers, advertising agency,

Characteristics of Nature of Media Organizations

4. Alliances -takes advantage of economies of scale, e.g., collaborations, networks, strategic

6. Flatter, decentralized Media Organizations - less middle management, resulting in top

7. Mindfulness of environments, changes, patterns and themes - priority on reflection and

IMPORTANCE OF MEDIA ORGANIZATION

H. Transfer and adaptation of technology: Any Media Organization is involved in ongoing

There are six key elements:

• Every Ford worker was assigned a specific, repetitive task.

➢ Two complementary concepts: authority and unity of command.

• Wider spans are more efficient in terms of cost.

➢ Narrow spans have three major drawbacks:

E:Centralization and Decentralization

➢ There are Media Organizations where decision-making is pushed down to those

➢ Centralization refers to the degree to which decision-making is concentrated at a

• The concept includes only formal authority.

➢ Low formalization—job behaviors are relatively non-programmed, and employees

Media Organizational Designs

A functional structure is defined as a design that groups similar or related occupational

A divisional structure is made up of separate, semi-autonomous units or divisions. Within

ORGANISATIONAL STRUCTURE OF MEDIA ORGANIZATIONS :

ORGANIZATIONAL STRUCTURE OF A NEWSPAPER

• Chief Editor or Editor-in-Chief or Editor heads this department.

Structure of the Editorial Department

Chief sub editor

Reporters and freelancers

Public Relations Department:

MAGAZINE DEPARTMENTS AND THEIR FUNCTIONS:

ELECTRONIC MEDIA ORGANISATIONAL STRUCTURE

The various components of organizational structure include the following:

• Specification of activities is simply related to the specification of individual and group

• Standardization of activities can be achieved through job description, operating

• Coordination is related to interlinking and integration of activities in organization.

• Centralization and decentralization of decision-making. Size of the work unit refers to

ORGANIZATIONAL STRUCTURE OF ALL INDIA RADIO:

The committee also proposed a Central News Room consisting of following:

ORGANIZATIONAL STRUCTURE OF DOORDARSHAN:

➢ The Director General heads the Department of Programme and Administration.

➢ The Department of Engineering is headed by Engineer-in-Chief who is answerable to

ORGANIZATIONAL STRUCTURE OF PRIVATE TV CHANNELS:

Ownership Patterns of Media Organisations

Vertical Ownership Pattern- In this, an organization owns or operates different media

1. Conglomerate ownership Pattern – It is a combination of two or more companies engaged

3. Trust ownership Pattern - A trust is a relationship whereby property (real or personal,

Newspaper Ownership in India

Cross Media Ownership and Conglomerates: Case Studies of Times Group

Cross Ownership in Media Industry

In a conglomerate, one company owns a controlling stake in a number of smaller companies,

These are the two philosophies guiding many conglomerates:

1. By participating in a number of unrelated businesses, the parent corporation is able to reduce