Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

The money is in Indian languages
Thu, 25 Mar Pre-Open

We often argue that English is our connect language with the rest of the world. It links us to the world science community and global commerce. It opens up the internet to us. A lot has been said about how a workforce proficient in English helped create an entire sector. That of outsourcing. Ironically, there's another sector that also promises to rise into prominence, but this time on the back of India's regional languages. The media sector. While this trend is also visible in electronic media, it is especially strong in the newspaper segment.

National vs. local

Regional media is attracting a lot of attention. In the past, newspapers focused on national news rather than regional or local news. Not so anymore. Also, established players have moved into newer geogrpahies making the space increasingly competitive. Also, local advertising is becoming increasingly important. The new advertising Rupee comes from sectors like education, hospitality, real estate and jewelry. These sectors purse local advertising campaigns.

The key driver is the rise of the smaller cities. Tier 1 cities (population > 4 m) are not the only market anymore. Tier 2 cities (population of 1 m to 4 m) and Tier 3 cities (population of 0.5m to 1 m) are becoming increasing important. Between 2005 and 2007, the number of households in Tier 1 cities grew by 6.6%, but they grew by 7.4% in Tier 2 cities and 6.9% in Tier 3 cities. In fact, it is estimated that by 2025, the combined population of Tier 2 and 3 cities will equal the population of Tier 1 cities. Indian languages dominate

The rise of regional media has reinforced the dominance of Indian languages as the medium of communication. Of the total registered daily newspapers, 45% are Hindi while 7% are in English. As can be seen in the table, regional languages dominate the list of top 10 dailies. In fact, even among the 10 most read Indian magazines only one is in English.

The top 10 newspapers in India
Rank Publication Readers in (000's)
1 Dainik Jagran 16,072
2 Dainik Bhaskar 12,878
3 Hindustan 9,303
4 Malayala Manorama 8,883
5 Amar Ujala 8,183
6 Daily Thanthi 7,605
7 The Times Of India 6,866
8 Lokmat 6,789
9 Rajasthan Patrika 6,668
10 Ananda Bazar Patrika 6,549
Source: Indian Readership Survey 2009

Conclusion

In the past, the high readership numbers for regional newspapers have not translated into higher revenues. That is rapidly changing. The smaller cities are growing fast. The new advertising Rupee is being generated by the regional economy. And it is increasingly staying within the region. FMCG majors and auto companies are turning towards the smaller centers. Media can hardly be expected to buck the trend. So, all the aspirational qualities of English aside, the money in the media industry is moving towards Indian languages.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "The money is in Indian languages". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.