Home > Media, Venture Capital / Private Equity > The Indian Media Paradox

The Indian Media Paradox

Lately I have been seeing a slew of business plans in both old and new media and the past few weeks were spent trying to understand the Indian media scene.    In this particular endeavor, I have been fortunate to have the support of  Vikram Arora from London Business School.   We have been working on trying to size the opportunity, but one particular slide he put together has helped me caliberate my expectations from the sector.

To put it succintly: India, one of the most prolific content creating and consuming markets has not been able to produce corresponding revenues for the content creators or wealth for shareholders.

The supporting data is on slideshare if you cannot see it here – full screen helps!

There are of course issues like purchasing power, GDP per capita, etc. etc. to normalize this data for, but the point is that foreign investors in this sector need to temper their expectations in real terms.   However, the rise of the Indian middle class, rising incomes, and the demographic dividend the country enjoys all point to opportunity in the media sector.

The online businesses are a whole new can of worms and I have some thoughts to share on that shortly.

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