The good news first. The National Readership Survey 2002 (NRS) for the year just out, spells cheer for those with an eye on the couch potatoes - access to C&S homes has jumped from 29 million homes in 1999 to 40 million homes in 2002 - a sprightly 31 per cent growth, more than twice the growth of the TV market.

Ironically, and sadly for those with their finger on the pulse of the TV watching populace, there has been a decline in time spent in front of the telly by urban audiences. Despite growing programme options, average viewing time has come down from 85 minutes in 1999 to 82 minutes per day in 2002. TAM, which supports NRS studies from this year, (along with IMRB and TNS Mode) confirm the suspicion - TAM data points to viewership time of two hours and 20 minutes in 1999 having slipped to two hours and ten minutes in 2002.

According to the National Readership Studies Council (NRSC), the health of the television industry otherwise shows brisk growth - homes with colour TV have increased from 19.4 m in 1999 to 27.8 m in 2002, while C&S subscription has now penetrated 50 per cent of all TV homes. TV of course continues to command a 72 per cent share of the average 13 hours spent on traditional media among urban audiences. The data, culled from a sample size of 213,000 respondents, across the country shows that Tamil Nadu, Karnataka, Andhra Pradesh and Gujarat dominate markets with a high reach of TV (over 42 per cent) and also high penetration of C&S (49 per cent of all TV homes).

More statistics for those with a yen for figures -
Of the 192 million (urban and rural) households with access to television, 42 per cent homes boast of at least one TV set. While urban TV penetration is high at 76 per cent of the population (42 million homes), in rural areas it is at 29 per cent of the population, but still a whopping 39 million homes.

Total TV viewership this year has been placed at 383 million, with C&S accounting for 139 million. Both Maharashtra and Punjab rank high in TV reach , but low in C&S penetration. The highest rate of growth in reach (16 Per cent) has however been noted in Punjab as well as in the north eastern states.

An interesting observation of the NRS 2002 is that the growing C&S reach is taking a toll on magazine readership in the country.

However, the urban reader still spends about 16 per cent of this total media time, ie 18 minutes per day reading a daily or a magazine. Internet reach now exceeds six million, but offices are no longer the main place of access. 43 per cent users use a cyber caf鬠while over 20 per cent surf from home, the survey says.

Radio currently reaches 28 per cent of the adult population, and even notes a slight decline in listenership. The share of FM has however increased in a stagnant urban market - 31 per cent or 15 million now tune on to any FM station - an increase of six per cent since 2001.

The entertainment and media industry continues to grow and has surpassed US $ 1 trillion in 2001 spending despite the dotcom fallout and a weak global economy.
PricewaterhouseCoopers Global Entertainment and Media Outlook: 2002-2006‘ projects global E&M industry spending to grow at 5.2 per cent CAGR, reaching $1.4 trillion in 2006.

Despite the combined "triple whammy" of the spillover from dotcom failures, a global economic/advertising market downturn, and the impacts of the 9/11 tragedy, the global entertainment and media (E&M) industry spending grew in 2001, rising by 1.5 per cent and exceeding the $1 trillion mark. Global E&M spending will reach $1.4 trillion in 2006, for a 5.2 per cent CAGR over the next five years, predicts the latest edition of the annual PricewaterhouseCoopers Global Entertainment and Media Outlook: 2002-2006‘, the only global five-year industry forecast.

The TV networks, broadcast and cable TV business will also contribute to the growth of the E&M sector in a big way in India. "A clear regulatory environment will accelerate the growth in both the sectors," Deepak Kapoor, head, Technology Infocom and Entertainment, PricewaterhouseCoopers in India, said.

Declaring that film entertainment will play a major role in the growth of the E&M sector in India, Kapoor said: "Lagaan and very recently Devdas at Cannes attracted a lot of attention globally, providing the much needed exposure for Indian film industry. Indian brand of cinema with its uniqueness of style is being accepted in the west. Market for Indian films abroad is now crossing the NRI lines to English speaking audiences as well. This popularity will drive the film entertainment business, poised to grow to $ 1,115 million by the year 2006."

On a global basis, notwithstanding the entertainment and media industry‘s resilience in 2001, weak economic conditions will continue to dampen spending in 2002 and 2003, but faster growth will resume in 2004-2006.

Digital distribution, piracy and a rebounding global advertising market will be three main factors impacting the industry‘s growth over the next five years.

What will be the principal drivers of growth?

Digital distribution of content, aided by rising broadband penetration, will be the greatest driver of new entertainment and media spending in 2005-2006, according to the forecast. For example, broadband connections in the US, driven by music and video-on-demand content that require high-speed connectivity, will surge from 9.4 million households in 2001 to 35.3 million in 2006 - nearly equalling the narrowband sector at 38.2 million households.

Piracy and unauthorised use of copyrighted material will continue to limit growth throughout the forecast period, especially in recorded music. Unless an industrywide solution is reached, piracy issues will begin seriously affecting other major E&M sectors, including filmed entertainment, home video and consumer book publishing.

Despite the near catastrophic year the global advertising market had in 2001, the PWC Outlook forecasts a gradual rebound with the ad market beginning to re-solidify in 2002, gaining strength in 2003, and turning out strong single digit growth during 2004-2006. Global advertising spending is predicted to increase at a 4.8 per cent CAGR, reaching a total of $405 billion in 2006, compared to $321 billion in 2001.

Increased channel capacity, coupled with a ‘fatter pipe,‘ will not only drive Internet access spending in the US, but also television distribution spending. With digital cable and DBS comprising 73 per cent of multi-channel subscribers, TV Distribution spending will soar to $100 billion in 2006.

Asia/Pacific‘s E&M industry will be fuelled by telecommunications deregulation, low internet penetration levels that leave room for substantial growth (a 17.3 per cent CAGR is expected), as well as government initiatives to promote internet usage. In addition, the 2002 World Cup in Japan and Korea will bolster the sports market.

According to PricewaterhouseCoopers‘ Asia/Pacific E&M Practice leader, Marcel Fenez, "Despite the sluggish Japanese economy and lost revenues due to piracy, the Asia/Pacific market has a promising future, with strong consumer markets for internet and multichannel television and DVD offerings."

Europe, Middle East and Africa (EMEA) is the second largest region with 2001 E&M spending of $339 billion. Once again, the internet will be the fastest growing segment, followed by sports, which will be bolstered by the 2006 World Cup in Germany and its associated television rights. EMEA will continue to experience moderate growth for the duration of the forecast period, with spending reaching $426 billion by 2006.

Commented Robert Boyle, European leader for PricewaterhouseCoopers‘ Entertainment & Media Practice, "EMEA will continue to grow at a pace reflecting consumer demand for new entertainment and information options. We project strong growth in internet and TV Networks and Distribution, fuelled by consumer desire for digital technology and multi-platform access to premium content such as sports, movies, news and business information."

Canada, the smallest region with $24 billion in entertainment and media spending in 2001, is expected to be the fastest growing, at 5.7 per cent CAGR. Primary drivers have been an advertising market that has held up relatively well despite the global economic downturn; a healthy home video and film production business; and the establishment of new digital channels.

The PricewaterhouseCoopers Entertainment and Media Practice addresses business challenges for its clients including developing business strategies to leverage digital technology; marketplace positioning in industries characterised by consolidation and convergence; and identifying new sources of financing.

Willy Burkhardt has announced his decision to leave ESPN later this month. As executive V-P, he led ESPN?s international efforts and its Enterprises division since 1999. Russell Wolff, senior vice president, ESPN International, has been promoted to managing director and will lead ESPN International going forward.
At ESPN, Burkhardt led a number of initiatives that enhanced the ESPN brand internationally, including numerous network launches, the global expansion of the SportsCenter franchise, an official release states. He also led the growth of the company?s joint venture in the Asian region ESPN Star Sports. He implemented important projects with ESPN Enterprises such as the opening of ESPN?s first large format film "ESPN?s Ultimate X". Burkhardt will continue to consult with ESPN on international matters for the remainder of the year. Burkhardt said that he would pause for some personal time and travel and to explore other professional challenges.

In his new position as managing director, Wolff will assume full responsibility for all of ESPN?s international businesses, which include partial or whole ownership of 24 networks televised outside of the United States to more than 150 countries and territories.

Wolff will directly oversee all aspects of ESPN International?s networks in Latin America, the Middle East, Africa, and the Pacific Rim, including programming, production, marketing, sales, and worldwide program syndication. In addition, he will oversee ESPN?s interests in a variety of international joint ventures including ESPN Star Sports in Asia, ESPN Classic Sport in Europe, CTV Specialty Television, Inc. in Canada, and Sports-i ESPN in Japan.

Global news channel CNN and its website CNN.com have gobbled three awards for excellence in reporting at The South Asian Journalists‘ Association (Saja) Journalism Awards 2002.
The awards were presented at the association‘s annual dinner at New York on 15 June.

CNN‘s New Delhi bureau chief, Satinder Bindra was honoured for the second consecutive year with this award. Bindra had travelled to Nepal and reported for CNN television and also wrote stories for its website.

The first place for outstanding story on any subject was awarded to Brazil: A special series when CNN.com‘s correspondent, Roy Wadia travelled to Brazil and gave first-hand reports from several Brazilian cities tackling issues such as the environment, AIDS, poverty and politics.

Afghanistan: The War Against Terror a series of reports by Bindra from Afghanistan won the third place for special project on South Asia. The series captured the essence of the heaviest US aerial bombing campaign since Vietnam.