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Murdoch to expand presence in India with six new TV channels
By James Fontanella-Khan and Arush Chopra in Mumbai
Published: August 5 2008 03:00 | Last updated: August 5 2008 03:00
Rupert Murdoch yesterday unveiled plans to expand News Corp's presence in India with a $100m investment in six regional TV channels, in a clear move to broaden the conglomerate's share of one of the fastest-growing media markets in the world.
The new TV channels, which will be aired in six cities, will help News Corp's Star TV channel tap into India's growing retail advertising sector, which depends heavily on regional media outlets.
TV advertising generated revenues of more than $2bn last year. The amount spent on regional TV advertising grew by 8 per cent in 2007, according to Tam, India's television rating agency.
"The investments will be in the region of $100m and we will launch within 12 months," Mr Murdoch said in Mumbai. However, News Corp's chairman was tight-lipped about the content of the new channels and cities in which they would be broadcast.
The media and entertainment market in India is expected to grow by 18.5 per cent between 2008 and 2012, the fastest rate among the Bric countries - Brazil, Russia, India and China - according to a recent report from PwC, the consultancy firm. China's growth rate for the same period is projected at 14.6 per cent.
India's print media sector has already seen a significant increase in foreign investment in the past two years. Overall readership has risen 15 per cent, and print ads alone generated $2.4bn in 2007, according to PwC.
The Wall Street Journal launched a content-sharing agreement last year and several glossy magazines such as Vogue have launched local editions. However, foreign investment in news publishing and broadcasting is capped at 26 per cent by the Indian government, which seeks to protect local news groups.
"We don't see ourselves taking a stake in print. . . because they are not available and because we won't want to take just a 26 per cent stake," said Mr Murdoch, who acquired Dow Jones last year.
He also added that following the arrival of the internet in India, the current regulations were ridiculous and eventually technology would sweep the barriers away.
Robert Thomson, editor-in-chief of Dow Jones, also present in Mumbai, echoed this view: "The Indian government must relax the controls, so papers like ours can compete in India."
By James Fontanella-Khan and Arush Chopra in Mumbai
Published: August 5 2008 03:00 | Last updated: August 5 2008 03:00
Rupert Murdoch yesterday unveiled plans to expand News Corp's presence in India with a $100m investment in six regional TV channels, in a clear move to broaden the conglomerate's share of one of the fastest-growing media markets in the world.
The new TV channels, which will be aired in six cities, will help News Corp's Star TV channel tap into India's growing retail advertising sector, which depends heavily on regional media outlets.
TV advertising generated revenues of more than $2bn last year. The amount spent on regional TV advertising grew by 8 per cent in 2007, according to Tam, India's television rating agency.
"The investments will be in the region of $100m and we will launch within 12 months," Mr Murdoch said in Mumbai. However, News Corp's chairman was tight-lipped about the content of the new channels and cities in which they would be broadcast.
The media and entertainment market in India is expected to grow by 18.5 per cent between 2008 and 2012, the fastest rate among the Bric countries - Brazil, Russia, India and China - according to a recent report from PwC, the consultancy firm. China's growth rate for the same period is projected at 14.6 per cent.
India's print media sector has already seen a significant increase in foreign investment in the past two years. Overall readership has risen 15 per cent, and print ads alone generated $2.4bn in 2007, according to PwC.
The Wall Street Journal launched a content-sharing agreement last year and several glossy magazines such as Vogue have launched local editions. However, foreign investment in news publishing and broadcasting is capped at 26 per cent by the Indian government, which seeks to protect local news groups.
"We don't see ourselves taking a stake in print. . . because they are not available and because we won't want to take just a 26 per cent stake," said Mr Murdoch, who acquired Dow Jones last year.
He also added that following the arrival of the internet in India, the current regulations were ridiculous and eventually technology would sweep the barriers away.
Robert Thomson, editor-in-chief of Dow Jones, also present in Mumbai, echoed this view: "The Indian government must relax the controls, so papers like ours can compete in India."
