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SWOT ANALYSIS OF MEDIA &
ENTERTAINMENT INDUSTRY
SUBMITTED BY T.SRUTHI (10036)

TELEVISION INDUSTRY
Television is one of the major mass media of India and is a huge industry having thousands of
programs in all the states of India.
In terms of no. of viewers,
1st- china
2nd-USA
3rd-India
There are total 823 channels of which 184 are pay channels

Swot analysis of media & entertainment industry by sruthi

SWOT ANALYSIS: STRENGTHS:
 The industry like television have a large customer base.
 The low cost of production and high revenues ensure a good return on investment for Indian
Television industry.
 Change in the lifestyle and spending patterns of the Indian masses on entertainment.
 Remains a favourite media source for most of the consumers irrespective of age domicile:
 92% of the respondents rank ‘watching TV’ as their top media source
 94% respondents consider ‘advertising on TV’ as the most influential media source to impact their
buying decisions.
 Ex: No movie in Bollywood now-a-days strikes the bigscreen without promoting of television.
 Is equipped with the power to influence people, their beliefs and their opinions.
 Being a visual medium, its impact transcends the social & educational background of its viewers.

WEAKNESSES:
 In current social scenario, weakness for a TV industry may be its inability to stick to ethical
standards in order to face tough competition.
Ex: no. of murders seen on TV by the time an average child finishes elementary school 8000.
no. of violent acts seen on TV by age 18 are 2,00,000.
 Slow momentum in digitalization. Cables are still in use.( new deadline 31st December 2014)
 Lack of penetration in lower economic classes.

OPPORTUNITIES:
 Increasing interest of global investors in Indian Television Industry.
 The smallscreen has produced numerous celebrities, some even attaining the national fame.
 Ex: TV actress Drashti Dhami beats Deepika Padukone(one of the leading Bollywood celebrities)
in “Top 25 Popular Asian Women” context 2014.
 The high technological innovation which is happening everyday also presents a good opportunity
for the media industry to utilize the latest technology.
 The media penetration is poor among the poorer sections of the society. This offers opportunities
for expansion in the area.
 TV soaps are extremely popular with housewives as well as working women. Approximately half
of all Indian households own a television
 Rise in the viewership & the advertising expenditure
 Total television viewership of 415 million is amongst the world’s highest with nearly 15-16
Television companies beaming programmers to India.

THREATS:
 Increasing interest of consumers in digital media
 Digital media advertising revenue grew by 17% in 2013 to $43billion.
 According to sources “ digital media is quickly surpassing the National Television Advertising
and will surpass total Television media by 2018”.

RADIO INDUSTRY
 Radio broadcasting in India started in British India in 1923 with the Radio Club of Bombay.
 All India Radio (AIR) was established in 1936 which is one of the largest radio networks in the
world including the AIR FM
 Some Popular Radio stations:
Radio Mirchi
Radio City
Red FM
Big FM
Fever
Radio One

STRENGTHS
 The success of private FM stations, and reveals that radio listenership habits have changed
considerably; not only are listeners tuning into it more often but also sticking to radio for longer
hours everyday.
 The advertisers, who would depend on pamphlets, brochures or ads in local supplements of
newspapers, are now opting for radio as medium.
 Radio since, a background medium, people can listen to radio anytime and anywhere they want.
It is also a free medium.
 90% of India has access to radio which is unmatched by any other media.
 Radio also reaches to uneducated village folk who do not read print publications. At the places
where the literacy rates are low where people hardly read newspapers and radio is the only
medium that they can understand. Since they cannot afford a TV set, radio is more popular.
 Radio is the least cost medium and it helps to reach mass audience with various backgrounds.
 Other media and advertisers also use radio as medium for brand recall.

WEAKNESSES:
 One of the major drawback with radio is that there is very less differentiation in the programs that
are aired.
 Ex: most of the radio stations play music, much of Hindi film songs.
 Radio offers only audio. There’s no visual thing. This is a boon as well as curse for radio industry.
Because, many advertisers think that medium without visuals can play little role in their
advertising plans.
 Increase in listeners but no proportionate increase in advertisement revenue

OPPORTUNITIES:
 Launching a radio station with 24-hour news channel.
 FDI in FM radio channels had increased to 26% from 20%.
 Govt. has cut license fee to 1/10th of the previous amount.
 Tie-ups with railway authority for playing the FM in train and in bus.
 The new radio stations which will come in future they can have venture with the college or
university campuses. And can play their station which will exclusively provide with the
information relating to that university/college campus.
 Privatization of Radio FM is expected to add 839 new radio stations in 294 cities.
 With the coming of the many more new players in the radio industry each channels can position
themselves quite different from others, like, if some station is targeting the health conscious
people then their programming strategy will vary accordingly. And then it is easier for the
advertisers also to decide on which channel to advertise.
 Allowing private FM players to start news and current affairs programmes.

THREATS:
 The biggest threat to private radio industry players is ALL INDIA RADIO. AIR
is the biggest player in India because of its reach, low charges, government
channel.
 Because of the new government policies there will be more number of stations
and then competition will also increase. This is one of the biggest threats it faces.
With no particular differentiation in the music.

PRINT INDUSTRY: STRENGTHS
 Overall industry size is 9%
 Loyal customers are still preferring newspaper as media.
 Rise in literacy in past decade has led to rise of regional newspapers.
 Most of the newspapers has an online presence and a growing view counts on their portals.
 Availability of area specific newspapers.
 Profound Knowledge and experience of print industry in how to target their audience.
 Growth of regional papers give advertisers access to localized populations, which is difficult to do
via national broadcast media.

WEAKNESSES:
 Short term contracts with advertisers is limiting investments and innovation.
 Inability of publishing companies to develop new successful business models.
 Property rights(in context publishing) is not always secured properly.
 Heavy investments to keep both printed as well as online versions.
 Attracting young reader’s remains a challenge.

OPPORTUNITIES:
 Digitization leads to lower printing costs and may enhance printing demand in
shortrun.
 Coping up with new technological advancements such as development of
multimedia content & multimedia design & distribution due to shift in media
consumption.
 Encouraging young writers and creative columns for youth segment.

THREATS:
 Environmental regulation regarding CO2, inks, and paper use.
 Stronger competition is being faced by print media.
 Growing environmental awareness with the public, depletion of ozone layer due to CFC’s and
depleting forest areas.
 Growing importance of electronic delivery of media content, causing substitution of printed
media by Internet and mobile devices.
 Major threat of profitability due to high cost of publishing a newspaper. It is roughly 40-50% of
total cost.
 Shift in focus to digital media

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