Indian Magazine Market Overview

4/18/12 Indian Magazine Market Overview

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Indian Magazine Market Overview

Introduction

Print Media in India is more than a century old and a well-established industry. The print industry mainly

comprises of newspaper and magazine publishing. Book publishing is smaller but significant in terms of

revenue. Even though it's a mature industry, new magazines are being launched every year. India has been

one of the fastest growing world economies since the past three years. Robust consumption and rising income

levels have helped the growth of print media. New titles that focus on niche topics continue to launch in the

market. The revenue sources for a magazine are subscription, single copy sales and advertisement.

Approximately 73 percent of revenue comes from advertising and 27 percent from circulation.

Challenging Times

The magazine industry is going through a tough phase in India just like in other countries. Newspapers have

added supplements to their main issue and infringed on the content covered by magazines earlier. Television

channels have launched in different genres that didn't exist a few years back. And with the increased

penetration and adoption of the Internet in the country, more people are now consuming news and stories on

different topics on the web and mobile. There is still a demand for high quality print content and magazines

need to deliver on that need to avoid losing market share to other mediums. In addition, they also need to

explore and distribute their content on the web and mobile platforms to give choice to their subscribers toconsume content from anywhere and at any time.



India has 49,000 publications, but annual revenues total just $1.1 billion. Most lack technology, marketing,

and capital to grow which has resulted in a handful of publications dominating the market with the Times ofIndia Group being the market leader. Distribution is critical for a magazine since it has to be readily available

and marketed to consumers. Big publications have strong distribution network set up.

Retail: magazines are available in retail outlets for sale. The retailer gets a commission on the sale price.

Subscription: publisher signs up subscribers directly or through partners and delivers the issues in mail.

Selective Distribution: Special sponsored copies are distributed in airplanes and hotels.

With the growth coming from Tier-2 and Tier-3 cities, magazines have to expand their distribution channelaggressively in those locations and localize content where needed.

The print industry in India is highly fragmented due to the large number of local languages. Regional language

publications own 46 percent of the market share, Hindi language publications cover 44 percent and theremaining 10 percent is served by English publications. The primary penetration of English language

magazines currently is in metros and urban centers though the growth is widening to smaller cities as theeducation and income levels increase among the middle class.

With the opening up of Foreign Direct Investment (FDI) policy, several international publishers are

aggressively entering the market and this trend is expected to continue.

The Opportunity

There's little doubt about India's market potential. According to a national survey, 248 million literate adultsstill don't read any publication. Readership of newspapers and magazines is up 15% since 1998 to 180million. It's a reflection of a younger, more educated population, especially in smaller cities.

Now that the doors to foreign investors in print media have been thrown open, one can expect activity to pick

up in this sector. Companies such as Pearson, Haymarket, Time India, News Corp., and Dow Jones haveeyed India's big, English-reading market. ICICI Ventures, which holds stakes in three media companies, is

quite bullish about the industry's prospects.



Trade books offer the best openings, since a higher FDI has been permitted in them. Britain's HaymarketPublishing Group already has ties to Autocar India, with 80,000 subscribers. Haymarket doesn't own a

stake, but helps with research and management. Now, it can invest, provide funds to print more copies,market more strongly and use Autocar as a platform to bring its other brands. Bombay's Tata Infomedia, a

$30 million publisher of yellow pages and trade magazines, also has already started to solicit business withforeign companies. The Tata Group sold the Indian edition of Reader's Digest magazine, making it the first

publishing property offered for sale since the government had scrapped the ban on foreign investment in theprint media.

As expected, there have been various anti-FDI lobbies, which are strongly voicing protests against foreign

investment in Indian Print Media. Their major contention is that foreign forces might begin dominating thecontent of Indian publications, which is detrimental to national interests. An extreme view given by a former

Indian Prime Minister is that powered by their immense finances and goaded by an ambition to control theemerging Indian market, the foreign monopolies will impose their own agenda of ultimately controlling Indianpolitics. But there is more than meets the eye. The English-language media, fearing competition from players

with deeper pockets, has been resisting this move by the Government. And from a marketing point of view,the English press reaches the most lucrative segment of society - the 300-million-strong middle class.

International players are seen as a threat to market share.

The opening up of the print media sector to foreign investment is a bold decision by the Government,considering the unwillingness of so many past Governments to do the same. It is a policy decision that could

have a very positive impact on the sector, provided the Indian publications generate enough interest andexhibit their true potential to the overseas investors. It could enrich the quality of the magazines and other

publications.

Recent Developments

There were several niche titles that were launched in 2008 and 2009. A slew of foreign players

launched their India editions.

The most notable magazine launched was Forbes India in May 2009 by Network18 and

Forbes Media.

RPG Group's 'Open', a weekly magazine aimed at evolved Indian readers who are wellinformed, well traveled and identify themselves as global citizens. It is available in 12 cities.

Pathfinder Publishing's maiden title Career 360, a monthly publication focusing on career advise.



Technology Review, a technology magazine launched in India jointly by MIT's Technology

Review magazine and CyberMedia India Ltd.

Hearst Corporation's Harper's Bazaar, a fashion and beauty magazine in partnership with India

Today.

The re-launch of Delhi Press' The Caravann, a fortnightly magazine that covers politics, culture,

arts and literature.

Images Group's FNL and Salon and Living etc., an Indian edition of international homesmagazine.

Gill India Communications' What Women Want, a woman's magazine for women aged between

20 and 45 years and 'Lifestyle Living', a lifestyle magazine dedicated to those with a creativelifestyle.

The trend for foreign magazines to launch their India edition is expected to continue in 2010 aswell, with BBC's Lonely Planet magazine having launched recently.

Newspapers and publications have reduced the number of pages to cut print and production cost.Magazines have discontinued supplements, which were earlier distributed free of cost with the main

product.

Foreign Investment in Indian Print Media - Role of Government

The process of economic liberalization in India, which began more than a decade ago, has taken anothersignificant step by opening up the print media sector. With the UPA Government scoring an emphatic win in

the Lok Sabha elections, the media industry got an open-minded Information & Broadcast Minister in

Ambika Soni who has sent positive signals to the industry. Earlier in 2009, the Government gave its nod to an

increase in Foreign Direct Investment (FDI) in facsimile editions of foreign newspapers. The Government alsoannounced customs duty exemption on newsprint.

In December 2008, the Indian Government unveiled a set of guidelines to allow Indian editions of foreign

news and current affairs magazines 26 per cent FDI as long as all key executives and editorial staff are Indian.

The Ministry of Information & Broadcasting has for the first time given approval for the publication of the

facsimile edition of foreign newspapers by allowing ‘The Wall Street Journal’ and ‘The Wall Street JournalAsia’ in India. Wall Street Journal India Publishing Pvt Ltd, a wholly owned subsidiary of Dow Jones and

Company Inc, would bring out these newspapers. The government has announced customs duty exemption

on newsprint for the newspaper and magazine publishing industry. These concessions were announced inFebruary 2009 in view of the economic slowdown and the high newsprint cost which spiraled close to 25%.



Advertisement Revenue

Breakdown by Region

North: 23%

South: 38%

East: 9%

West: 26%

National: 4%

The ad revenue sources are national, local, classified, pre-printed (inserts) and advertorials. The CPM rate

for magazines is lower than television and the audience is more targeted.

Ad Industry Size in India

Year 2006

Ad Industry Amount ($ Million)

TV 1,655

Print 1,650

Magazine 300

Radio 125

OOH 250

Internet 40

Total 4,020

Year 2011 (Projected)

Ad Industry Amount ($ Million)

TV 3,075

Print 3,250



Magazine 573

Radio 425

OOH 538

Internet 238

Total 8,098

Key Players

Top 25 English Magazines in India

India Today

Readers Digest

General Knowledge Today

Competition Success Review

Filmfare

Wisdom

Stardust

Outlook

Diamond Cricket Today

Business Today

Femina

The Sportstar

Competition Refresher

Health & Nutrition

The Week

Auto Car



Outlook Business

Woman's Era

Business India

Champak

Outlook Traveller

Business World

Digit

Society

Frontline

Top English Magazines by Segment

Current Affairs, Culture & Politics

Outlook

The Week

India Today

Frontline

Tehelka

Reader's Digest

Society & Women

Femina

India Today Plus

Woman's Era



Verve Online

Desh Videsh

Teens Today

India Line

Little India Overseas India Magazine

South Asian Life

Entertainment

Filmfare

G Magazine

Screen

Chitralekha

Music Today - India Today Publication

Deccan Chronicle - Cinema News

Bollywood Online

Planet Bollywood Gossip

Bollywood News Daily

Stardust

Sports

Sport Star

ESPN

Cricket Info

Khel



Diamond Cricket Today

Fashion

Vogue (UK)

Cosmopolitan

Cosmo Girl

Fashion Planet

Glamour

Harper's Bazaar

Business & Financial

Capital Market (Stock Market)

Business Today

Business Standard

Economic Times

Financial Express

Commercenet India

Trade India

India Vibes Online

Sourcing Hardware

Business India

Outlook Business

Computer & Electronics

PC Quest



Electronics For You

Dataquest

PC World

Popular Science

Popular Mechanics

Computer World

Cyber India Online

Informatics

Silicon India

Voice & Data

Travel & Leisure

Budget Travel

Discover India Magazine

Gourmet Travel

Outlook Traveler

Travel Plus

Wanderlust

Lonely Planet

Conde Nast Traveller

Children

Amar Chitra Katha

Spiderman



Competition Master

Odyssey Magazine

Competition Success Review

Wisdom

Fashion & Lifestyle

i-D

Another Magazine

M Magazine

Vogue

Dazed and Confused

View Point

Literature

Darpan

India Star

Raga Net

Meghdutam

Average Issue Readership (AIR) Analysis (2008 vs. 2009)

The Average issue readership numbers have been on a decline due to increased competition from freecontent on the Internet and Mobile platforms.



India Today is the highest read English magazine in the county with an AIR of 1,955,000, which is an8.7 percent decline in its readership.

Reader’s Digest has seen a 2.1 percent drop in its AIR and is now at 1,327,000.

General Knowledge Today has dropped by 8.5 percent, and is now at 1,121,000.

Competition Success Review has an AIR of 766,00 and has seen a 3.5 percent drop.

Outlook with an AIR of 533,000 has seen a 7 percent drop.

Filmfare is the new entrant in the top ten list with an AIR of 490,000.

Wisdom has seen a 4.6% drop with an AIR of 455,000.

Stardust has slipped down the list with a 11.4 percent decrease. The current AIR is at 388,000.

Diamond Cricket Today has an AIR of 378,000, which is a 5.5 percent decline.

Competition Refresher has increased by 37.3% and its AIR is now at 335,000.

The Week has dropped by 4.2 percent and the AIR is 322,000.

Femina has dropped by 4 percent and now has an AIR of 309,000.

Business Today has dropped by 12 percent in its AIR down to 287,000.

Health & Nutrition has an AIR of 250,000, which is a 11.3 percent decline.

The Sportstar has seen 14.8 percent drop in its AIR and now stands at 242,000.

Business India stands at 222,000, which is a 7.5 percent decline in its AIR.

Woman’s Era has seen an AIR of 200,000, which is a 4.8 percent decline.

Auto Car had a 13.1 percent growth to an AIR of 199,000.

Champak has seen a 4 percent decrease with an AIR of 193,000.

Business India has an AIR of 166,000, which is a decline of 18.6 percent.

Business World has an AIR of 165,000.

Outlook Traveller has seen an AIR of 146,000.

Digit has seen a 5.8 percent decline.

Society has seen a growth of 1.7 percent.



<< Previous Entry Next Entry >>

Frontline has seen a 20.8 percent decline.

Tinkle – Amar Chitrakatha is one of the few who have seen a 0.9 percent growth.

Femina Girl saw a growth of 6.2 percent.

Auto India like many others has seen a 18.7 percent decline in its AIR.

P C Quest and Outlook Money have both seen a decline of 17.4 percent and 24.3 percentrespectively.

Business and Economy has seen a 6.5 percent growth with an AIR of 82,000.

Inside Outside has seen a 17.3 percent while Cosmopolitan has seen a 61.4 percent growth.

Overdrive has dropped by 23.7 percent.

The Telegraph in Schools has grown by 72.5 percent with an AIR of 69,000.

New Woman has seen a drop of 9.2 percent while Magic Pot has an AIR of 58,000.

Time has seen a growth of 3.6 percent.

Cine Blitz has dropped by 5.7 percent while Elle and Savvy have grown by 29.7 percent and 13percent respectively.

References

PWC – Indian Entertainment and Media Outlook 2009

Exchange4Media.com

Indian Readership Survey – 2009

Association of Indian Magazines – AIM

Referred to News Articles and Press Releases for 2009 & 2010

Tags: Indian Magazine Market, Magazine, Print Media, Publishing



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