MAM
Global media economy set to accelerate in 2014: Study
MUMBAI: The year is coming to an end, and it’s time to introspect. Various studies will be done to review how the years went by. Was it good, bad or ugly?
As far as media owner advertising is concerned, the revenue grew by 3.2 per cent in 2013 to $ 489.6 billion at a global level, even though the economic environment remained weak throughout 2013, according to the study by Magna Global.
Around the global average growth of +3.3 per cent for advertising revenues in 2013, Latin America once again showed the strongest growth (+9.5 per cent), followed by Eastern Europe (+7.9 per cent) and Asia Pacific (+6.3 per cent). On the other end, developed markets showed little or no growth: North America +1.5 per cent, Western Europe -0.8 per cent.
 |
“That level of economic activity is not particularly impressive by historical standards but confidence indices keep improving and we believe advertising spending will reflect and amplify that economic trend,” said Magna Global India director intelligence EVP Venkatesh S in the report.
Asia Pacific advertising revenue grew by an average of +6.3% in 2013 to $148.7bn. Television continues to remain the largest media category in APAC, and will grow by +5.1% in 2013, up from +4.3% in 2012 to reach market share of 42.3% of total spend in the region. However, it will gradually fall below 40 per cent share in the next five years.
Digital is the fastest growing category and will grow by +22.4% in 2013 to reach $33.6bn, as per the study. Newspaper and magazines continue to lose ground at -1.4% and -3.1% CAGR through 2018, respectively, and together print will only represent 21.8 per cent of total spend in 2013, down from 32.2 per cent of total spend as recently as 2008. As a whole, the APAC region now represents approximately 30 per cent of total global spend.
Within APAC, China and Japan represent nearly two thirds of the total APAC advertising revenues. However, China is growing quickly and will surpass Japan for the top spot in APAC as soon as 2015. But the development of the markets within APAC varies significantly with some very advanced markets such as Australia and some much underdeveloped markets like India. This disparity can also be seen in the share of digital spend, with India’s digital market share at 7.4 per cent of total spend in 2013 vs. Australia’s at 32.7 per cent of total spend.
Rise of social media
The biggest game changer, this year, has been the rise of social media and, more specifically mobile social media. In the last 18 months, social media usage has migrated towards portable devices and platforms at a faster rate than most anticipated.
The impressive success of tablets in the Western world and the rapid penetration of feature phones and smartphones in the developing world have contributed to this rapid shift in consumer usage. At the same time, social media owners (Facebook and Twitter most significantly) have introduced ad formats specifically matched to those portable devices that have met with instant success among marketers without alienating users.
Globally, the social media advertising grew by 58 per cent this year, to $9.1bn, of which $2.9bn came from mobile social (+ 300 per cent), the forecast company said in the report.
Looking forward
The company predicts the economic conditions to improve for good in 2014. It expects the global advertising revenue to grow by +6.5 per cent (previously: +6.1 per cent) to reach $521.6bn, which will be the strongest year-on-year growth since 2010 (+8.4 per cent, following the 2009 recession).
Said Magna Global’s director of global forecasting EVP Vincent Letang in the report, “The combination of an improved economic environment and stronger-than-usual cyclical drivers is bound to unlock marketing and branding budgets in 2014. This will primarily benefit television and digital media where new formats and opportunities are being explored for activation and branding campaigns”.
Brands
TV bills on the rise: JioStar, Sony, and Zee crank up prices by 10 per cent
Broadcasters tune into higher tariffs as JioStar, Sony, and Zee reveal new prices
MUMBAI: If you were hoping for a cheaper night in front of the telly next year, you might want to look away from the remote. India’s broadcasting giants are flipping the script on pricing, with JioStar, Sony, and Zee all tuning into a new frequency of higher tariffs. Ahead of the 2026 financial year, the Big Three have released their updated Reference Interconnect Offers (RIOs), signalling a collective push that will see most monthly bills rise by roughly 10 per cent.
The synchronised move suggests that broadcasters are testing the price elasticity of their audience. In simpler terms, they are betting that your love for daily soaps and live sports is stronger than your annoyance at a slightly lighter wallet.
Sony is making a particularly bold play in the High Definition space. If you enjoy the crispness of Sony Entertainment Television HD or Sony SAB HD, your monthly bill for those channels will jump from 25 rupees to 30 rupees. The same 30-rupee price tag now applies to their sports heavyweights, including Sony Sports Ten 1, Sony Sports Ten 2, Sony Sports Ten 3 Hindi, and Sony Sports Ten 5.
However, Sony is also expanding its horizons. Fans of regional content have new arrivals to look forward to, provided they are patient. Sony Sports Ten 4 Kannada is slated for an April 2026 debut, while Sony Vizha and Sony Vizha HD are expected by June. By August, Sony Telugu and Sony Telugu HD should be live. To keep customers sweet until then, Sony is offering “proportionate discounts.” For instance, the Happy India 2026 Smart Tamil bouquet, normally 42 rupees, will cost just 29.91 rupees until the new Vizha channel officially joins the party.
On the standard definition front, Sony is keeping its “strategic mass price” at 19 rupees for big hitters like Sony Max, Sony Marathi, and Sony Aath. Smaller channels see minor tweaks: Sony Max 2 is nudging up from 2 rupees to 3 rupees, while Sony Yay! sits at 6 rupees and Sony Max 1 remains at 5 rupees.
Zee Entertainment is also getting in on the act with a comprehensive 10 percent hike. Their flagship Standard Definition channels, such as Zee TV, Zee Cinema, Zee Marathi, Zee Bangla, Zee Sarthak, Zee Kannada, and Zee Tamil, are all locked in at 19 rupees. Interestingly, they have matched this 19-rupee price point for many of their HD versions too, including &TV and &Pictures.
For those who prefer the all-you-can-eat bouquet approach, Zee’s All-in-One Hindi SD pack has risen to 58 rupees. Their Marathi and Bangla packs are now 64 rupees, while the Southern trio of Tamil, Kannada, and Telugu SD packs will set you back 85 rupees. If you want those same Southern packs in glorious HD, the price climbs to a steeper 131 rupees. Zee is also shuffling its deck by exiting English entertainment but entering the sports arena, with Zee Cafe and &flix seeing price adjustments to 7 and 8 rupees respectively.
JioStar is perhaps the most aggressive of the bunch when it comes to regional favourites. While they have kept core Hindi staples like Star Plus, Colors, and Star Gold at 19 rupees, they have pushed premium regional channels like Asianet, Colors Kannada, Vijay TV, and Maa TV up to 30 rupees. This move is significant because any channel priced over 19 rupees cannot be included in a discounted bouquet, meaning fans of these channels will have to buy them separately, potentially driving up the total cost of a monthly subscription.
Even the youngsters aren’t spared, with kids’ favourites like Nick SD and Nick HD+ now priced at 19 rupees. As we head towards April 2026, the ball is now in the court of the cable and dish operators. They must decide how much of these increases they can swallow and how much they will pass on to the person holding the remote. For the average viewer, the message is clear: premium content is getting a premium price tag.
