Industry body Associated Chambers of Commerce and Industry in India (ASSOCHAM) has mooted a three-pronged strategy for the entertainment industry, aimed at optimum utilisation of their resources, successful expansion in regional markets and securing relaxed financing to counter slowdown.
In a study ‘Next is What?’ brought out jointly by ASSOCHAM and E&Y, it has outlined the above strategy for the Indian media and entertainment CEOs.
“With the recognition of the ongoing changes in the economy, entertainment and media companies must aim to utilise their existing resources to their optimum capacities and increase operational efficiencies, says the study.
Releasing the study, the ASSOCHAM spokesman said: “Synergy of existing resources will be critical in coming months. This will induce companies to re-look at not only internal core processes but also examine industry-wide functions such as uplinking of channels and news gathering etc. Increasing number of companies will shift core and non-core business processes to standalone specialised agencies... There will be other tie-ups, such as news channels tying up with regional channels for live feeds for election pools in a particular area or a company having radio stations in remote circles tying up for marketing with some national players.”
Emphasising the importance of regional markets, the study says, “the growth of regional markets has compelled all large layers in the industry expand geographically. The Dhoni effect and the rise of small town India cannot be ignored by advertisers or any national player today. Media companies will have to diversify into regional markets and consider its impact, while making key strategic decisions. This is one reason, why large broadcasters are now looking at regional programming in order to expand operations and increase revenues.”