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    Eco Assignment Final

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    Hitesh Jain
    The small screen entertainment market in India has grown significantly over the last two decades. It started as a government-owned monopoly with just one channel, Doordarshan, but economic reforms in the 1990s allowed private and foreign broadcasters to enter the market. This led to rapid expansion, with over 100 channels now available nationwide. However, the market is still dominated by an oligopoly of just three major channels - Zee TV, Colors, and Star Plus - which combined account for 65% of the market share. Barriers to entry for new players remain high due to licensing fees and costs.

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    Eco Assignment Final

    Uploaded by

    Hitesh Jain
    32 views3 pages
    The small screen entertainment market in India has grown significantly over the last two decades. It started as a government-owned monopoly with just one channel, Doordarshan, but economic reforms in the 1990s allowed private and foreign broadcasters to enter the market. This led to rapid expansion, with over 100 channels now available nationwide. However, the market is still dominated by an oligopoly of just three major channels - Zee TV, Colors, and Star Plus - which combined account for 65% of the market share. Barriers to entry for new players remain high due to licensing fees and costs.

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    The small screen entertainment market in India has grown significantly over the last two decades. It started as a government-owned monopoly with just one channel, Doordarshan, but economic reforms in the 1990s allowed private and foreign broadcasters to enter the market. This led to rapid expansion, with over 100 channels now available nationwide. However, the market is still dominated by an oligopoly of just three major channels - Zee TV, Colors, and Star Plus - which combined account for 65% of the market share. Barriers to entry for new players remain high due to licensing fees and costs.

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    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    32 views3 pages

    Eco Assignment Final

    Uploaded by

    Hitesh Jain
    The small screen entertainment market in India has grown significantly over the last two decades. It started as a government-owned monopoly with just one channel, Doordarshan, but economic reforms in the 1990s allowed private and foreign broadcasters to enter the market. This led to rapid expansion, with over 100 channels now available nationwide. However, the market is still dominated by an oligopoly of just three major channels - Zee TV, Colors, and Star Plus - which combined account for 65% of the market share. Barriers to entry for new players remain high due to licensing fees and costs.

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    Small screen entertainment market in India-an overview & Share of Hindi GEC Small screen entertainment (Television) market

    in India has come up with leaps and bounces in the last two decade. TV soaps, daily news and sports channels are extremely popular across target audiences of different age group and sex in India . Approximately 3/4th of all Indian households own a television, remarkable for a country where 71% of the population lives on less than Rs.100 (US$2.00) per day*. Market structure-History Indian small screen programming and entertainment started off in the early 1980s. At that time there was only one channel Doordarshan, which was government owned. The Ramayana and Mahabharat (both being Hindu mythological stories based on religious scriptures of the same names) were the first major television series produced. These serial notched up the world record in viewership numbers for a single program. Besides other serials like Buniyaad, Hum Log, Chhayageet, Chitrahaar, Giant Robot etc. also gripped the nation and television viewing became a status. By the late 1980s more and more people started to own television sets. Though there was a single channel, television programming had reached saturation. Hence the government opened up another channel which had part national programming and part regional. This channel was known as DD-2 later DD Metro. Both channels were broadcast terrestrially. Thus, the market structure of Indian small screen entertainment market was characterized as government owned monopoly. Post Liberalization Television However, the central government launched a series of economic and social reforms in 1991 under Prime Minister Narasimha Rao. Under the new policies the government allowed private and foreign broadcasters to engage in limited operations in India. This process has been pursued consistently by all subsequent federal administrations. Foreign channels like CNN, Star TV and domestic channels such as Zee TV and Sun TV started satellite broadcasts. Starting with 41 sets in 1962 and one channel (Audience Research unit, 1991) at present TV in India covers more than 130 million homes giving a viewing population more than 400 million individuals through more than 100 channels. A large relatively untapped market, easy accessibility of relevant technology and a variety of programmes are the main reasons for rapid expansion of Television in India. Today, India has over 130 million homes with television sets, of which nearly 71 million have access to cable TV. The overall Cable TV market is growing at a robust 8-10%. The cable TV industry exploded in the early 1990s when the broadcast industry was liberalized and saw the entry of many foreign players like Rupert Murdoch's Star TV Network in 1991, MTV, and others. Sun TV (India) was launched in 1992 as the first private channel in South India. Today it has 20 television channels in the four South Indian languages - Kannada, Malayalam,

    Tamil and Telugu. Channels of the Sun TV network are also available outside of India. Recently Sun TV launched a DTH service. Also, the Raj Television Network was started in 1994 and continues to be an important player in the South Indian cable TV provider space. In 1992, the government liberated its markets, opening them up to cable television. Five new channels belonging to the Hong Kong based STAR TV, Sony (1995) gave Indians a fresh breath of life. MTV, STAR Plus, BBC, Prime Sports and STAR Chinese Channel were the 5 channels. Zee TV was the first private owned Indian channel to broadcast over cable.

    Taking a cognizance of the market structure, it is observed that despite the entry of many private players post 1995, the market is controlled by only three channels-Zee TV (18% market share), Colors (23% market share), and Star Plus (24% market share) together accounting for 65% of the market share. These channels are largely dependent on each other as each of them closely takes note of action taken by the other. Launch of series of reality show in response to the action of rival firm is a prime example of such case. Also, there is fair degree of price rigidity among these three channels. Any reduction in the prime time charge by either Zee TV or Star is quickly replicated by colors. Also, the market poses fairly large number of entry barriers to new players in the form of licensing fees, and initial capital requirement. Also, advertising and selling cost are of strategic importance to these large players as they constantly try and match their competitors action. Hence, despite the opening up of the sector to private players the market structure has only shifted from monopoly of Doordarshan to oligopoly market currently.

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