BA(JMC) Semester 6: Media Management Notes

 

Media Management

Unit I: [Media Organisation - Structure and Functions]

1. Media Organisation: Meaning, Structure and Importance

2. Ownership Patterns of Media Organisations

3. Cross Media Ownership and Conglomerates: Case Studies of Times Group and Reliance Communication

4. FDI in Indian Media and Entertainment Industry

Unit II: [Management - Functions and Principles]

1. Management: Definition, Need and Principles

2. Management Functions: Planning, Organizing, Directing, Staffing, Controlling and Coordination

3. Management: Responsibility, Authority and Accountability

4. Leadership: Importance, Needs and Types

Unit III: [Managing Media Organisations and Start Ups]

1. Establishing a Media Organization or Start Up: Steps Involved

2. Human Resource Management: Roles and Responsibilities

3. Methods of Revenue Generation by Media Organizations and Start Ups

4. Managing Cost and Revenue Relationship

Unit IV: [Media Marketing and Entrepreneurship]

1. Marketing Media Products

2. Media Business: Innovation and Entrepreneurship

3. Media Entrepreneurship and its Challenges

4. Emerging Trends in Entertainment and Media Industry

UNIT 1

TOPIC 1: Media Organisation: Meaning, Structure, and Importance

Meaning

The Organization involved in production, distribution, and exhibition of content through mass media constitutes a media organization. It could be a film production unit, television production company, advertising agency, PR agency, Newspaper agency, Television channels, web portals, etc.

These organizations are mainly involved in producing content for their audiences.

TYPES OF MEDIA

• Based on Technology: Electronic Media, Print Media, New Media

• Based on reach: National, Regional, Local

• Based on function: News, Entertainment, Advertising

Structure

Departments in a media organization are based on specialization; where different job descriptions are placed together or set apart depending on the specific target. It is also determined by the job description; with those that are related being placed underone department e.g.Editor and a writer

Departments vary from one organization to another depending on variables such as the type of structure and the size and success of the organization.

DEPARTMENTS IN NEWSPAPER ORGANIZATION

In a typical newspaper organization the following departments are found:

1. The Editorial Department

The editorial department is the heart of a newspaper organization since collection, selection, processing, and packaging of news items take place here. The management team found here include: Editor-in-Chief, Managing/ Executive Editor, Chief sub-Editor, Sub editor, news editor and chief reporter.

The editorial department is usually divided into two: the news and the editorial department. The news

departments being headed by a managing/ editor while the editorial side having the Editor-in-Chief as their overall supervisor. In some organizations however the Editor-in-Chief might be in charge of the entire editorial department and is more superior to the Managing editor. In other organizations the opposite is true.

2. The Advertising Department

This department is all about sales and marketing as well as checking for readership and viewership numbers. An advertising department is primarily responsible for revenue generation. This it achieves through canvassing of adverts to be aired or place in the organization’s newspaper and selling of the advertising space to interested parties. In some organizations especially for the print industries, this department is sometimes further divided into sections such as the circulation, the marketing/research and the advertising section. This means that apart from dealing with the sourcing of adverts, the market and readership/ viewership survey is done in this department. It also deals with the delivery of the final product to the target audience through various mediums such as: delivering the publication through own or third-party carriers, mailing through the post office, selling on newsstands, use of vendors, and use of radio, television, and the internet.

Employees found in this department are majorly salespeople and they include but not limited to: an Advertising Account executives (Heads the department) andare overallin chargeof regular canvassingofadverts, sales manager, and Advertisement clerks (record keeping), Director Program Marketing & Advertising etc.

3. Printing/ Production Department

This department is responsible for packaging of news items as well as the adverts or classifieds. Here employees are responsible for designing and making of newspaper pages as well as printing the final product.

4. Administration Department

Also referred to as the maintenance department in some newspaper organizations, this department ensures proper functioning of the organization. It ensures all other departments are working together to meet the overall organizational goals and objectives. Examples of personnel found in this department include: Chief Executive

Officer (C.E.O) and Chief Operating Officer (C.O.O) or the president of an organization.

5. Business and Finance Department

This department deals with the organization’s funding. Funding is important if any media organization is to achieve its organizational goals and objectives. Purchasing of equipment or hiring of new personnel requires adequate finances.

Personnel found in this department include:

• Internal auditors (review interim results and financial statements)

• Accounts clerk

Some of the activities undertaken in this department include:

1. Managing salaries

2. Record keeping of all sale and purchases made.

3. Raising finances through various was such as seeking corporate loans or seeking funding from well-wishers.

4. Preparing financial statements and reviewing interim results to determine loss or profit.

5. Equipment and Personnel Department

This department is in charge of hiring new employees, promoting hard-working employees, firing and carrying out disciplinary action against non-performing or indiscipline staff. It’s also referred to as the human resource department in some organizations. The human resource manager who is in charge of this department also determines the number of employees required in the organization. Training programs are held by the HRD to improve the employee’s skills, as well as to motivate them. There are three main types of training:

Induction training-new employees are shown how the organization runs and the structures in place.

On-the-job training-employees participate in capacity building through various ways such as holding workshops where they get trained by experts on newer or better ways of performing their roles

Off-the-job training-here an employee gets support from the organization to continue with their education e.g. pursuing a master’s degree program or a Ph.D. in their field.

The Indian Media & Entertainment sector is expected to reach US$ 100 billion by 2025, from its estimated size of US$ 17.85 billion in 2015, due to its large capacity to consume new products and businesses.

Importance 

Media Organizations are established to attain the different goals related to the different interest groups. These are attained through the mutual contribution of all related stakeholders. We can realize the importance of Media Organization in society in many ways, among which some are discussed as follows:

A Synergy effect: In an Media Organization, people having different skills and expertise work together to produce the synergetic effect with the help of latest technology. The result of the work done in group will be higher as compared to the additional value of individual work. Media Organizations make possible the complex activities. A very small team of players and very small number of civil servants can manage the activities of the government and the nation.

B. Team Spirit: Media Organizations always enhance the team spirit within its team members. No Media Organization can attain its goal with a single effort of limited members. So, by naturally Media Organization strengthen the feeling of team spirit to his components.

C. Attainment of Common goal: Different individuals have different goals on the basis of their social values and they come to the Media Organization in the expectation of the fulfillment of those goals. Media Organizations fulfill their goals by creating the environment of compliance of Media Organizational goals with the individual goals. Media Organizations motivate them for the commitment in the common goal.

D. Employment Opportunity: The Media Organization has thousands of small tasks and responsibilities in hierarchical form for the goal attainment obviously creating employment opportunity in variety of scale.

E. Economic Development: Through the employment, purchasing power will increase as well as the Media Organization has to pay tax resulting more revenue collection for government. This revenue will help in the infrastructure development like roads, hospitals etc. On the other way, employment generation is the basic tools for the economic development for any nation. Employment creates income, income creates purchasing power, purchasing power creates demand, and to fulfill the increased demand production should be increased. To produce more, again more employment is necessary. Thus this helps for economic development creating a good economic development circle in the nation.

F. Specified Service: Media Organizations are established to produce or render specified goods or services to the society giving emphasis on innovation and creativity. This also helps to fulfill the customer needs bringing up the social awareness.

G. Minimize Economic Disparities: As the lower level people get the opportunity to work and get remuneration, the economic gap between the different levels of society will be lowered.

H. Transfer and adaptation of technology: Any Media Organization is involved in ongoing process of research to enhance its level of services. In this course, it adapts the latest technologies available in the market and indirectly it also imparts these technologies to the society through its members.

TOPIC 2: Ownership Patterns of Media Organisations

Types of Ownership of media

Generally, four major types of ownership of organizations in India mass media i.e. Chain, cross-media, conglomerate and vertical integration.

Cross-media ownership

Media cross-ownership is a situation in which a single corporate entity owns multiple types of media companies. Like, newspaper, magazines, musical labels, and publishers and so on in the same geographical market. This phenomenon results in surfacing of competition concerns owing to economic power getting concentrated in fewer hands and the limitation of diversity of news, information available to the common man.

(Different media TV + Radio + New) owned by one owner (Eg: Sun network – Sun TV, Suriyan FM, Dinakaran, Kungumam)

Horizontal concentration/ Chain Ownership

Same media(Eg: Newspapers, Magazines) owned by the same owner(Eg: BCCL group Times of India + Economic times + Navbharath times, etc.)

Chain ownership means the same media company owns numerous outlets in a single medium, a chain of newspapers, a series of radio stations, a string of television stations or several book publishing companies. Chain ownership in India applies mostly to newspapers. 

There are many publishing groups in India which fall into this category such as the group headed by the Times of India, Hindustan Times, Indian Express, Statesman, Ananda bazar Patrika, Hindu, Telegraph and living media foundations.

Vertical Concentration

Vertical integration indicates that a media company monopolizes the production of the ingredients that go into the making of   media products. For example a newspaper publisher may own several hundred areas of forests where the major components of a newspaper namely wood for newsprints cultivated. Some other newspaper company may own a factory that produces the bulk of the printing ink or processed used in the industry. Certain film companies may own studies or industrial units   producing film stocks or even a chain of theatres where the films are exhibited.

Conglomerate Ownership

Conglomerate ownership means the ownership of several business one of which a media business. In a conglomerate, there will be interlocking of directorships, which means the same persons will be director of a media company as well as of manufacturing industries or financial corporations. In fact several transport or lorry company directors are directing the destiny of newspaper, television or film production companies. 

Their main business will be a high-profit industry, but they run a media company for prestige or to exercise social and political influence on decision-makers in the private or public sector and in the government of the day. Such a conglomeration may not always support an unbiased or dispassionate presentation of events, issues, and personalities. However, there are already at least six states where a single media house has a clear and growing dominance. These are media groups that are emerging as national conglomerates. They are all in the news business as well as in entertainment, media distribution, and network business. They own newspapers, magazines, radio, cable TV and television channels, to name their key businesses.

If the present trend of cross media, conglomerate and vertical  integration ownership continues, monopolization will result   which will ultimately lead to the phenomenon of suppression  not only of media freedom  but also of the unbiased  presentation of various points of view. Most media companies in India and abroad are integrating vertically to sell cross-media, often acquiring or building multimedia platforms. News Corp.’s Star TV India and Sun TV Network Ltd already own DTH and cable distribution platforms. Star’s cross-media India operations include television channels, Internet offerings, radio, mobile entertainment and home video (incidentally, 11 cable distribution companies provide some 400 television channels in India). Sun Network has 14 TV channels in four states, cable assets, four magazines, radio stations and two newspapers. In Tamil Nadu, the dominance of Sun in cable and satellite TV (channels and distribution network) and now in the DTH market is quite visible. Sun TV and its cable company are known to simply blackout political telecasts by rival Jaya TV.

The Ownership Pattern of Newspaper in India

1.  There are many media organisations in the country that are owned and controlled by a wide variety of entities including corporate bodies, societies and trusts, and individuals. Information about such organizations and people is scattered, incomplete, and dated.

2. The sheer number of media organizations and outlets often conceals the fact there is dominance over specific markets and market segments by a few players – in other words, the markets are often oligopolistic in character.

3. The absence of restrictions on cross-media ownership implies that particular companies or groups or conglomerates dominate markets both vertically (that is, across different media such as print, radio, television and the internet) as well as horizontally (namely, in particular geographical regions).

4. Political parties and persons with political affiliation own/control increasing sections of the media in India.

5. The promoters and controllers of media groups have traditionally held interests in many other business interests and continue to do so, often using their media outlets to further these. There are a few instances of promoters who have used the profits from their media operations to diversify into other (unrelated) businesses.

6. The growing corporatization of the Indian media is manifest in the manner in which large industrial conglomerates are acquiring direct and indirect interest in media groups. There is also a growing convergence between creators/producers of media content and those who distribute/disseminate the content.

TOPIC 3: Cross Media Ownership and Conglomerates: Case Studies of Times Group and Reliance Communication

Cross-ownership of media occurs when a person or company owns outlets in more than one medium (i.e., newspapers, radio, and television) in the same geographical market. for example a newspaper and a television Station. This phenomenon results in surfacing of competition concerns owing to economic power getting concentrated in fewer hands and the limitation of diversity of news, information available to the common man. 

Globally, large media conglomerates include Bertelsmann, National Amusements (ViacomCBS), Sony Corporation, News Corp, Comcast, The Walt Disney Company, AT&T Inc., Fox Corporation, Hearst Communications, MGM Holdings Inc., Grupo Globo (South America) and Lagardère Group.

India is a unique country in terms of media ownership. There are no cross-media ownership laws, except in TV, where broadcasters and cable distribution firms cannot hold more than 20% of a DTH (direct-to-home) company and vice versa. More importantly, India does not have any restrictions on the market share of a media company in a specific segment; only in FM radio there is a stipulation that a private firm cannot own more than 15% of total stations auctioned by the government.

These anomalies have obviously resulted in a distorted media market. Horizontally, Bennett, Coleman & Co Ltd (BCCL) owns a large newspaper chain (The Times of India, Economic Times and Navbharat Times), a thriving TV network (Times Now) and one of the largest digital media empires (www.indiatimes.com). Vertically, the Mumbai-based Zee Group owns TV channels, cable distribution and DTH business. In many cases, business groups have both horizontal and vertical presence.

In fact, there has been little debate on cross-media ownership in India. In February 2009, the telecom regulator, TRAI, recommended that there should be a cap of 20% on ownership of one media company in another, or if the same owner was present across different media, either horizontally (i.e., print, TV, radio and digital) or vertically (i.e., broadcasting and distribution). Now, the regulator has issued a consultation paper, and asked for public suggestions on these critical issues.

• The absence of restrictions on cross-media ownership implies that particular companies or groups or conglomerates dominate markets both vertically (that is, across different media such as print, radio, television and the internet) as well as horizontally (namely, in particular geographical regions).

• Media business can be run only with advertising and subscription to meet the expenses and certainly it is not a tool for social reforms. Media conglomerates are largely run for business interests and not specifically for any ideology.

• Media companies in India and abroad are integrating vertically to sell cross-media, often acquiring or building multimedia platforms. News Corp.’s Star TV India and Sun TV Network Ltd already own DTH and cable distribution platforms. Star’s cross-media India operations include television channels, Internet offerings, radio, mobile entertainment and home video.

• Sun Network has 14 TV channels in four states, cable assets, magazines, radio stations and newspapers. In Tamil Nadu, the dominance of Sun in cable and satellite TV (channels and distribution network) and now in the DTH market is quite visible. Sun TV and its cable company are known to simply blackout political telecasts by rival Jaya TV.

India’s established media conglomerates have staunchly refused to accept the need for restrictions over ownership and control, arguing that this would result in devious and dubious forms of censorship and have resurrected the ghosts of the 1975-77 Emergency. The government too has played along. After all, powerful politicians need media barons as much as they need them – a mutually beneficial back-scratching society of sorts. 

 

Reliance Communication Case study

Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.

n 2008, he invested over $655m into ETV - a major regional media player. A year later, he loaned more than $80m to NDTV, one of India's most influential national broadcasters. Then, in 2012, in his biggest media deal, he bought out Network 18, one of the largest media houses in India for almost three-quarters of a billion dollars. It took Ambani less than five years to become an Indian media mogul without equal.

Five Indian news media companies — NDTV, News Nation, India TV, News24 and Network18 — are either indebted to Mukesh Ambani, the richest Indian and the owner of Reliance Industries, or to Mahendra Nahata, an industrialist and associate of Ambani’s, who is also on the board of Reliance’s new telecom venture, Reliance Jio.

In May 2014, Reliance Industries Limited (RIL) acquired Network18 for Rs 4,000 crore which was criticised as the death of Indian media independence.

What Reliance has achieved by becoming the biggest player in India’s mass media industry is that it has enhanced its ability to influence public opinion through the media, thereby also strengthening its hold over the working of the country’s political economy.

In February 2020, Reliance Industries announced a consolidation of its media and distribution businesses spread across multiple entities into Network18.

Under the new arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments.

Network18 shall, along with affiliates, have leading positions across the growing media and distribution landscape in India:

• 13% share of TV viewership in the country o #1 News network and #3 Entertainment network in India by viewership

• 56 channels across News and Entertainment, spanning 15 languages

• 1 in 4 internet users in India are on the group’s websites or apps o MoneyControl (#1 Finance app) o Voot (#2 Broadcaster OTT)

• News18.com (#1 Regional News destination)

• 12.5% share of India’s cable & satellite pay-subscriber base o #1 cable platform, covering ~30% of India’s cable subscriber base

• Presence across 18 states

• 6.7% share of the country’s wireline broadband subscriber base

• India’s wireline penetration is amongst the lowest in the world at ~7%, affording significant headroom for growth

Reliance JIO

Just as Reliance used its oil monopoly to leverage itself into becoming the leading Indian telecom player in just four years, it is now leveraging its leading telecom position to create new monopolies that will provide digital services over this network. It is also eyeing a place in building of future 5G networks in other countries, aligning itself with the US against China in the 5G tech and trade war.

Jio has lured customers by offering super low-cost access to a state-of-the-art network. Its generosity relies on the financial strength of parent company Reliance Industries, India's most valuable firm. Hooked on a daily feed of cheap gigabytes, Jio's customers won't care.

Over $20 billion of investment has rolled into Jio Platforms in the past three months, from some of the biggest names in technology, fueling fears Jio's monopoly of India's telecoms industry is unstoppable.

The recent ban covering 59 Chinese apps, including Tiktok, UC Web and Shareit, can only help Jio-Facebook combined dominate India's digital ecosystem. The apps were banned because of tension on the India-China border earlier in 2020.

While Jio might have competitors in different segments, like Airtel in connectivity, or smartphone makers in devices, it doesn't really have a direct counterpart – and that could adversely impact the country's entire digital ecosystem.

Times Group Case Study

Bennett, Coleman and Company Limited, commonly known as The Times Group, is India’s largest media conglomerate, according to Financial Times as of March 2015. The company remains a family-owned business with Sahu Jain family owning a majority stake in The Times Group. The Times Group has over 11000 employees and revenue exceeding $1.5 billion.

It has a presence in  variety of media outlets and publications, in addition to music, fi lms, syndication, education, financial services, event management, out-of-home (OOH) advertising, and real estate. It is one of the largest media houses in India,  and publishes among the country’s most famous publications. Times of India, one of the world’s largest-circulated English dailies, is published from a number of cities across India. Its other significant publications are Economic Times, Navbharat Times and Maharashtra Times. They also publish the renowned magazines, Femina

UNIT 2

TOPIC 1: Management: Definition, Need and Principles

Definition

Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. —Harold Koontz and Cyrill O’Donnell

A Manager is the person responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary.

Managers may direct workers directly or they may direct several supervisors who direct the workers. The manager must be familiar with the work of all the groups he/she supervises, but does not need to be the best in any or all of the areas. It is more important for the manager to know how to manage the workers than to know how to do their work well.

A manager may have the power to hire or fire employees or to promote them. In larger companies, a manager may only recommends such action to the next level of management. The manager has the authority to change the work assignments of team members.

A manager's title reflects what he/she is responsible for. An Accounting Manager supervises the Accounting function. An Operations Manager is responsible for the operations of the company. The Manager of Design Engineering supervises engineers and support staff engaged in design of a product or service.

Nature

Nature of management can be described as follows.

• Continuous Process: Management is a never-ending process. It will remain the part of organization till the organization itself exists. Management is an unending process as past decisions always carry their impact for the future course of action.

• Universal in Nature: Management is universal in nature i.e. it exists everywhere in universe wherever there is a human activity. The basic principles of management can be applied any where whether they are business or non-business organization.

• Multidisciplinary: Management is basically multidisciplinary. Though management has developed as a separate discipline it draws knowledge and concepts of various other streams like sociology, psychology, economics, statistics etc. Management links ideas and concepts of all these disciplines and uses them for good-self of the organization.

• Management is a group activity. Management is a vital part of group activity. As no individual can satisfy all his needs himself, he unites with his co-workers and work together as an organized group to achieve what he cannot achieve individually.

• Management is goal oriented: Management is a goal oriented activity. It works to achieve some predetermined objectives or goals which may be economic or social.

• Dynamic: Management is dynamic in nature i.e. techniques to mange business changes itself over a period of time.

• System of authority: Authority is power to get the work done by others and compel them to work systematically. Management cannot perform in absence of authority. Authority and responsibility depends upon position of manager in organization.

Need

It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals.

Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources.

Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction.

Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone.

Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization.

Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.

Principles

Henry Fayol's 14 Principles of Management

Fayol's principles are listed below:

1. Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient.

2. Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.

3. Discipline – Discipline must be upheld in organizations, but methods for doing so can vary.

4. Unity of Command – Employees should have only one direct supervisor.

5. Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.

6. Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers.

7. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.

8. Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.

9. Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command.

10. Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.

11. Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.

12. Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority.

13. Initiative – Employees should be given the necessary level of freedom to create and carry out plans.

14. Esprit de Corps – Organizations should strive to promote team spirit and unity.

TOPIC 2: Management Functions: Planning, Organizing, Directing, Staffing, Controlling and Coordination

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling

Planning

• Managers engage in planning when they develop strategies for success, establish goals and objectives for the organization, and translate their strategies and goals into action plans. 

• Planning can be considered the primary management function because it drives all the other functions. 

• To develop long-term strategies and goals, managers must be well informed on anumber of key issues and topics that could influence their decisions. 

• According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals

• It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

• While the managers at the top level devote more time on planning, the managers at the lower level follow the policies, programmes and procedures laid down by the top management.

• For any business activity, planning is a prerequisite for doing anything and also to ensure the proper utilisation of the resources of the business concern to achieve the desired goals.

Organising

• Organizing, the process of arranging resources to carry out the organization’s plans, is the second major function of managers. During the organizing stage, managers think through all the activities that employees carry out, as well as all the facilities and equipment employees need in order to complete those activities. They also give people the ability to work toward organizational goals by determining who will have the authority to make decisions, to perform or supervise activities, and to distribute resources.

• According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. 

• To organize a business involves determining & providing human and non-human resources to the organizational structure. 

• Organizing as a process involves:

1. Identification of activities.

2. Classification of grouping of activities.

3. Assignment of duties.

4. Delegation of authority and creation of responsibility.

5. Coordinating authority and responsibility relationships.

Staffing

• It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. 

• The main purpose of staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. 

• According to Kootz&O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. 

• Staffing involves:

1.  Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).

2. Recruitment, Selection & Placement.

3. Training & Development.

4. Remuneration.

5. Performance Appraisal.

6. Promotions & Transfer.

Directing

• It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes.

•  It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.

•  Direction has following elements:

1. Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.

2. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

3. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.

4. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.

Controlling

• Controlling is the fourth basic managerial function. In management, controlling means monitoring a firm’s progress toward meeting its organizational goals and objectives, resetting the course if goals or objectives change in response to shifting conditions, and correcting deviations if goals or objectives are not being attained.

• Rather than focus primarily on financial results, many companies now use a balanced scorecard, which monitors the performance from four perspectives: finances, operations, customer relationships, and the growth and development of employees and intellectual property.

TOPIC 3:  Management: Responsibility, Authority and Accountability 

Authority

Authority is the right or power assigned to an executive or a manager in order to achieve certain organizational objectives.

A manager will not be able to function efficiently without proper authority. Authority is the genesis of organizational framework. It is an essential accompaniment of the job of management. It indicates the right and power of making decisions, giving orders and instructions to subordinates. Authority is delegated from above but must be accepted from below i.e. by the subordinates. In other words, authority flows downwards.

A manager alone cannot perform all the tasks assigned to him. In order to meet the targets, the manager should delegate authority. Delegation of Authority means division of authority and powers downwards to the subordinate. Delegation is about entrusting someone else to do parts of your job. Delegation of authority can be defined as subdivision and sub- allocation of powers to the subordinates in order to achieve effective results.

Features:

1. It is the right to give orders and make decision.

2. It is provided by position by organization.

3. If flows from top to bottom.

4. It can be delegated to subordinates.

Features of Delegation of Authority:

1. Assigning responsibility: It creates obligation on the part of the receiver to perform the assigned duty.

2. Granting authority: It grants sufficient authority to accomplish the giver assignment.

3. Creation of accountability: Accountability is a system making people answerable towards those who delegate them authority in the management hierarchy. Thus, delegation of authority creates the accountability towards the superior.

Responsibility

Responsibility - is the duty of the person to complete the task assigned to him. A person who is given the responsibility should ensure that he accomplishes the tasks assigned to him. If the tasks for which he was held responsible are not completed, then he should not give explanations or excuses. Responsibility without adequate authority leads to discontent and dissatisfaction among the person. Responsibility flows from bottom to top. The middle level and lower level management holds more responsibility. The person held responsible for a job is answerable for it. If he performs the tasks assigned as expected, he is bound for praises. While if he doesn’t accomplish tasks assigned as expected, then also he is answerable for that.

Types of responsibility

• General Responsibility- The individual who guide and directs the execution of the function through the person accepting operating responsibility.

• Operating Responsibility: The individual who is directly responsible for the execution of the function.

• Specific Responsibility: The individual who is responsible for executing a specific or limited portion of the function.

Features:

1. It is obligation to perform assigned jobs.

2. It arises from delegation of authority.

3. It flows upward.

4. Responsibility should equals authority.

5. Responsibility cannot be delegated

Accountability 

It means giving explanations for any variance in the actual performance from the expectations set. Accountability cannot be delegated. For example, if ’A’ is given a task with sufficient authority, and ’A’ delegates this task to B and asks him to ensure that task is done well, responsibility rest with ’B’, but accountability still rest with ’A’. The top level management is most accountable. Being accountable means being innovative as the person will think beyond his scope of job. Accountability, in short, means being answerable for the end result. Accountability can’t be escaped. It arises from responsibility.

Features:

1. It is answerability for satisfactory performance of assigned jobs.

2. It arises both from authority and responsibility.

3. It flows upward.

4. It cannot be delegated.

TOPIC 4:  Leadership: Importance, Needs and Types

Leadership is an integral part of management and plays a vital role in managerial operations. It provides direction, guidance, and confidence to the employees and helps in the attainment of goals in much easier way. In business and industrial organizations, managers play the role of leader and acquire leadership of subordinates, their efforts towards the achievement of organizational goals and activate the individuals of an organization to make them work. Leadership influences behaviour of the individuals. It has an ability to attract others and potential to make them follow the instructions. Individuals can be induced to contribute their optimum towards the attainment of organizational goals through effective leadership.

Leadership is the art of influencing and inspiring subordinates to perform their duties willingly, competently and enthusiastically for achievement of group’s objectives.

According to Koontz and O'Donnell, "Leadership is the art or process of influencing people so that they will strive willingly towards the achievement of group goals".

Leadership Functions:

1. Setting Goals:

A leader is expected to perform creative function of laying out goals and policies to persuade the subordinates to work with zeal and confidence.

2. Organizing:

The second function of a leader is to create and shape the organisation on scientific lines by assigning roles appropriate to individual abilities with the view to make its various components to operate sensitively towards the achievement of enterprise goals.

3. Initiating Action:

The next function of a leader is to take the initiative in all matters of interest to the group. He should not depend upon others for decision and judgement. He should float new ideas and his decisions should reflect original thinking.

4. Co-Ordination:

A leader has to reconcile the interests of the individual members of the group with that of the organisation. He has to ensure voluntary co-operation from the group in realizing the common objectives.

5. Direction and Motivation:

It is the primary function of a leader to guide and direct his group and motivate people to do their best in the achievement of desired goals. He should build up confidence and zeal in the work group.

6. Link between Management and Workers:

A leader works as a necessary link between the management and the workers. He interprets the policies and programmes of the management to this subordinate and represent the subordinates’ interests before the management. He can prove effective only when he can act as the true guardian of the interests of the subordinates.

Importance of Leadership

1. Initiating Action: Leadership starts from the very beginning, even before the work actually starts. A leader is a person who communicates the policies and plans to the subordinates to start the work.

2. Providing Motivation: A leader motivates the employees by giving them financial and non-financial incentives and gets the work done efficiently. Motivation is the driving force in an individual’s life.

3. Providing guidance: A leader not only supervises the employees but also guides them in their work. He instructs the subordinates on how to perform their work effectively so that their efforts don’t get wasted.

4. Creating confidence: A leader acknowledges the efforts of the employees, explains to them their role clearly and guides them to achieve their goals. He also resolves the complaints and problems of the employees, thereby building confidence in them regarding the organization.

5. Building work environment: A good leader should maintain personal contacts with the employees and should hear their problems and solve them. He always listens to the point of view of the employees and in case of disagreement persuades them to agree with him by giving suitable clarifications. In case of conflicts, he handles them carefully and does not allow it to adversely affect the entity. A positive and efficient work environment helps in stable growth of the organization.

6. Co-ordination: A leader reconciles the personal interests of the employees with the organizational goals and achieves co-ordination in the entity.

7. Creating Successors: A leader trains his subordinates in such a manner that they can succeed him in future easily in his absence. He creates more leaders.

8. Induces change: A leader persuades, clarifies and inspires employees to accept any change in the organization without much resistance and discontentment. He makes sure that employees don’t feel insecure about the changes.

Types of leadership

Autocratic or Authoritarian

In this type of leadership, there is a complete centralization of authority in the leader, i.e., authority is centered in the leader himself. He has all the powers to make decisions. He uses coercive measures and adopts, negative method of motivation. He wants immediate obedience of his orders and instructions. Any negligence on the part of subordinates results in punishment. There is no participation from the subordinates in decision-making. A leader thinks that he is the only competent person in the organization. According to Edwin B. Filippo, there are following three types of leaders in autocratic:

1. Hard Boiled or Strict Autocrat: Leader, under such type uses negative influence and expects that the employees should obey his orders immediately. Non-compliance of his orders results in punishment. He makes all decisions and does not disclose anything to anyone. He is quite rigid on performance.

2. Benevolent Autocrat: Benevolent autocrat leader uses positive influences and evelops effective human relations. He is known as paternalistic leader. He praises his employees if they follow his orders and invites them to get the solutions of the problems from him. He feels happy in controlling all the actions of his subordinates.

3. Manipulative Autocrat: Leader, under such type is manipulative in nature. He creates a feeling in the minds of his subordinates and workers that they are participating in decision-making processes. But he makes all decisions by himself. Non-compliance of his orders also results jn punishment.

Democratic or Participative

Democratic or Participative leadership is also known as group centered or consultative leadership. In this type of leadership, leaders consult their groups and consider their opinion in the decision-making process. Leaders encourage discussion among the group members on the problem under consideration and arrive at a decision depending on their consent. Participation or involvement of the employees in the decision-making process is also rewarded. Exchange of ideas among subordinates and with the leader is given encouragement. Leaders give more freedom to their group members, who feel that, their opinions arc honored and they are given importance. It develops a sense of confidence among subordinates and they derive job satisfaction. It improves quality of decision as it is taken after due consideration of valued opinions of the talented group members. The demerit of this type of leadership is that it takes more time to arrive at a decision, as a lot of time is wasted while taking the views from the employee. It is, therefore, very time consuming.

Laissez-faire or Free Rein

In this type of leadership, there is virtual absence of direct leadership. It is, therefore, known as "no leadership at all". There is complete delegation of authority to subordinates so that they can make decisions by themselves. Absence of leadership may have both positive and negative effects. Free rein leadership may be effective if members of the group are highly committed to their work. The negative aspect shows that the leader is not competent enough to lead his group effectively. Members may feel insecure and develop frustration for lack of decision-making authority.

Bureaucratic

This type of leadership emphasizes the rules and regulations of an organization. The behaviour of a leader is determined by the rules, regulations and procedure to be followed under his leadership. The leader and the subordinates both follow these rules and regulations. Therefore, there is no difference between the management and the administration in this type of leadership. The employees, themselves cannot do anything in this regard. It is the rules that determine their performance.

Manipulative

This type of leadership manipulates the employees to attain their assigned tasks. A manipulative leader is quite selfish and exploits the aspirations of the employees for his gains. He knows very well the needs and desires of the employees but he does very little to fulfill them. Due to such attitude, he has to face the hatred of the employees at times.

Paternalistic

The paternalistic leadership believes in the concept that the happy employees work better and harder. It maintains that the fatherly altitude is the right one for better relationship between the manager and the employees. Everyone within the organization should work together like a family.

Expert Leadership

The expert leadership emerged as a result of complex structure of modern organizations. This type of leadership is based on the ability, knowledge and competence of the leaders. He handles the situation skillfully with his talent. The employees feel relieved as they are working under a person who is expert and can handle the situation without any problem. In modern organizations, human resources vary in terms of skill, knowledge and competences. They differ in quality, determination and their attitude towards the organization. They exhibit different behaviours as they differ in attitude and outlook also. The leader must understand their behaviour and accordingly can make use of the various types LEADERSHIPS. The manager should assess the situation and adopt that type of leadership, which suits that situation. He should remember that leadership is situational. If situation changes, the use of leadership among its various types also changes. A successful leader is the one who assesses the situation, studies the psychology of the subordinates and adopts the most useful type of leadership to lead the people at work to accomplish the organizational goals.

UNIT 3

TOPIC 1:  Establishing a Media Organization or Start Up: Steps Involved

If you create content with professional editors and writers, publish it periodically, it means that you are in the media business. Owners of newspapers and magazines establish media companies. They produce content, bundle it, and distribute it. Sometimes, they produce it in both paper and digital formats.

However, the media industry contains film and music production,  graphics, art, etc. (any type of media content). And so, social media are a part of this industry as well. These digital communities are platforms for sharing user-generated content. Today, they compete with publishers for people’s attention.

Steps Involved

1. Target Audience

The first step is similar for any company. You need to target a particular group of readers. This will provide you with ideas for content and give you direction on building your company. Depending on the number of potential readers/users, you can determine the size of your business.

Gather your senior team from editorial, sales, marketing, and business development. Obtain some existing market data; it’s likely that the local audience segments have already been identified. If not, it’s not difficult to work this out.

Audience segments are groups of similar people with overlapping interests. Focus on three audience segments and super-serve them. Try to imagine one character that best represents each group. Download pictures from the internet of people who fit the character profiles you have identified.

Ask the following questions:

• What are their interests and what stories would they read?

• What are their concerns? You need to find the answers they require.

• What would turn them off? Identify the stories they would probably skip.

• What is their lifestyle, are they married, in a relationship, single, have they got children?

• Are you catering for their personal and lifestyle interests?

• What do they buy and what are they unlikely to buy? Make sure you have the right adverts in your output.

As an example, suppose you want to establish an online sports magazine. Define your target group (or groups) – age, gender, region, etc. Connect the segments with particular sports (i.e. football, basketball, swimming, etc.). Now you can plan the limits of traffic for your website, the development stages of your business, and the marketing channels to interact with users. You know your audience’s interests, and what they need and buy. Based on this info, you can immediately build revenue streams by working with advertisers.

2. Benefits / Value

Like any company, you need to identify the valuable features of your media company. They will form your company image and a core message for the customers. The next leg is the core editorial proposition (CEP). It defines what you offer that nobody else offers, or the way you research and present material that is different from what your competitors are offering. This is your market differential designed to win over the audience groups you are targeting.

• What differentiates you from your competitors? Stay unique. 

• What new info will users find on your website? Make it clear for readers. 

In marketing terms, it can be an important process in defining your news brand. In terms of your online and mobile services, defining your CEP also helps you decide what to include and what to leave out. It helps journalists decide how to ensure the online version of your output is focused.

It will offer your audience clarity and comfort as they begin to get to know how to access and use your news on the various devices on which you are delivering your content. Linked with a multiplatform authoring strategy generated from a converged newsroom, it will also offer a consistency of editorial message across all outlets.

3. Medium / Platform

Substantial operating costs for a print publication are not appealing to a startup. However, you can easily start an online media company by just installing WordPress.

WordPress is the most popular CMS (Content Management System). Famous publications, such as Vogue and Rolling Stone, use it for their websites.

Even some well-known newspapers have discontinued printing to cut expenses. Also, some leading print media publish articles on their website before putting it in print. 

Advantages of digital media:

• It is easy to make changes to articles, even after publishing

• Interactivity

• Ability to collect subscriber data

• 24/7 access from any region

• Ability to respond quickly to subscriber requests

4. Legalities

You must first incorporate your business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership

You have to follow all the normal procedures for registration of any business like obtaining the certificate of Incorporation/Partnership registration, PAN, and other required compliances

5. Content

Define categories and topics for creating content. Base your choice on the popularity of topics, search requests, trends, and/or keywords. Depending on your niche (news, stories, blog articles), plan a marketing strategy to attract new visitors, and interact with loyal customers.

However, your main task is to create high quality, unique, and useful content for your audience.

6. Marketing Strategy

As part of the CEP, you need to define your marketing strategy. It’s important you do this because your audience may already be ahead of you and you don’t want to appear out of touch and irrelevant. You will need to decide how you use Twitter, Facebook, YouTube or traditional media tv radio etc. 

In the times of digital media, a social media networking strategy is super important. Too many media businesses fail to think this through when they should be harnessing social networking for the benefit of both the audience and the media business. A well thought-out CEP can take as little as half a day to figure out, jot down, and begin to implement.

7. Funding

Starting any business has a price, so you need to determine how you're going to cover those costs. Do you have the means to fund your startup, or will you need to borrow money? If you're planning to leave your current job to focus on your business, do you have money put away to support yourself until you make a profit? It's best to find out how much your startup costs will be. 

Many startups fail because they run out of money before turning a profit. It's never a bad idea to overestimate the amount of startup capital you need, as it can be a while before the business begins to bring in sustainable revenue.

8. Revenue

What are your goals for starting a new media company? The most popular reason is to generate income. Ads are not the only source of revenue for media companies. What are the alternative sources of revenue for publishers?

Here are some ideas for you on how to make money with an online media company.

• Google AdSense. With this service, you insert a programming code on your website to display ads. The amount of your revenue depends on your website traffic. Cost Per Click (CPC) differs for various industries. Generally, the rate ranges from a few cents to $1-2 per click. On average, the number of clicks on ads is less than 1% of website traffic. Calculate your approximate revenue using your website statistics (“Pageviews Per Month” in Google Analytics).

• Third-party ad platforms. Much like Google Ads, third party platforms connect advertisers with website owners. However, you get more potential for revenues. For example, ZEDO provides publishers with rich ad formats and videos for displaying on the websites. The company has tools for targeting and reporting. You can even find ad servers with ready-made promotional text content.

• Crowdfunding. If you’ve collected a loyal base of subscribers, ask them to help expand your business. Definitely, it’ll work if your company is highly trusted. For instance, perhaps you write about economics but want to hire someone to start a politics column. Crowdfunding can help you raise a basic amount of money for further investment.

• Paid content. Offer your subscribers access to especially valuable content for a fee. Membership is rather popular among online media. To encourage visitors to participate, offer bonuses with a purchase (calls to editors, consultation).

• YouTube Channel. Create video versions of your content, so that it can be posted on Youtube. Monetize your YouTube channel with ads.

• Partner program. Many companies have affiliate programs for sales of their products through their partner network. To take part in it and make money, you need to publish stories about products on your website and include an affiliate link. Members of these programs receive commissions when purchases are made through their referral link.

Another option for a company that already has an influence in their industry is to find a sponsor. Sponsors provide revenue for the media company and become their partner.

As stated above, once you attract an audience, and keep them engaged, your online media company will have more opportunities to generate revenue.

Indian Media Startup Examples

1. Knowstartup

Knowstartup is passionate about building and promoting the startup ecosystem in India and helping many entrepreneurs to achieve their dream of creating a successful startup.

2. StartupsIndia

They started with sharing success stories of startups in India and their founder stories and now they have also started featuring bloggers who started their blog with passion.

3. Inc42

Inc42 does not need any introduction as they have now become the gateway to the Indian startup ecosystem. They have published more than 15,000 stories.

4. Taaza Tadka 

Taaza Tadka let you to submit a startup quickly and friendly manner, They have featured Techfi Labs, Marketonix, BookWook, Bag2bag and many more.

5. ET Tech

ETtech.com tracks all the media outlets focusing on Technology industry and brings the most relevant and important news & analysis on the industry. 17. Observe Now

6.ObserveNow 

is a independent new age media news portal to rediscover news segment. They believe in creative and not so boring ways to deliver news and information, with a team of dedicated and hard-working journalist.

7. Yourstory 

For people, living under a rock, YourStory brings stories of entrepreneurs, change-makers, funding analysis, resource pieces and the first glimpse of emerging trends from India’s entrepreneurial ecosystem, 

They also profile and feature great businesses and entrepreneurs from all over the world

TOPIC 2:  Human Resource Management: Roles and Responsibilities

Definition

In simple words, HRM is a process of making the efficient and effective use of human resources so that the set goals are achieved.

According to Flippo, ‘Personnel Management, or say, human resources management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end, that individual, Organisational and social objectives are accomplished”.

HRM can be defined as a process of procuring, developing and maintaining competent resources in the organization so that goals of an organization are achieved in an effective and efficient manner. In other words HRM is an art of managing people at work in such a manner that they give best to the organisation.

Key roles and responsibilities

The primary responsibilities associated with human resource management include: job analysis and staffing, organization and utilization of work force, measurement and appraisal of work force performance, implementation of reward systems for employees, professional development of workers, and maintenance of work force.

1. Recruitment

This is the one function which is hand in glove with HR. Recruitment has been one of the major responsibilities of the HR team. It is the job of HR personnel to plan and devise strategic campaigns and guidelines for recruiting suitable candidates for a required job description. They also have to serve as a mediator between the employer and the candidate and communicate company policies and terms of the contract to the candidate before  they are hired. This is the first pillar of HR management that every HR manager starts with. 

Once the recruiting part of the staffing process has been completed, selection is accomplished through job postings, interviews, reference checks, testing, and other tools.

Today’s human resource executives do more than post ads and interview job candidates to fill open positions. Modern HR executives formulate employer brands designed to attract the right job candidates.

In this responsibility, human resource leaders work to promote their respective firms as highly favorable workplaces. HR executives often earn this kind of accolade for organizations by creating a positive culture and providing satisfactory compensation and benefits as ways to attract ideal work candidates.

2. Organisation 

Organization, utilization, and maintenance of a company's work force is another key function of HRM. This involves designing an organizational framework that makes maximum use of an enterprise's human resources and establishing systems of communication that help the organization operate in a unified manner. 

3. Employee Development and Training

Not all is done once you’ve recruited a suitable candidate for the job. Many organizations perform tasks a tad differently. Training employees is important to help the new hires get acquainted with the organization’s work pattern. It is imperative for the HR department to incorporate a training program for every new employee based on the skill set required for their job. It will further also contribute to employee motivation and retention.

HR is responsible for researching an organization's training needs, and for initiating and evaluating employee development programs designed to address those needs. These training programs can range from orientation programs, which are designed to acclimate new hires to the company, to ambitious education programs intended to familiarize workers with a new software system.

For the training to be effective, every new employee can be subjected to an on-the-job training for the initial days to get him in sync with the work guidelines of the organization. This training will not only be of assistance to the employee but also give the HR team an insight into the employee’s workmanship. On completion of the training, HR plays a significant role in assessing the results of the training program and grading employees on the same.

4. Performance Appraisals

Performance appraisal is the practice of assessing employee job performance and providing feedback to those employees about both positive and negative aspects of their performance. Performance measurements are very important both for the organization and the individual, for they are the primary data used in determining salary increases, promotions, and, in the case of workers who perform unsatisfactorily, dismissal. 

In the realm of performance appraisal, HRM professionals must devise uniform appraisal standards, develop review techniques, train managers to administer the appraisals, and then evaluate and follow up on the effectiveness of performance reviews. They must also tie the appraisal process into compensation and incentive strategies, and work to ensure that federal regulations are observed.

Reward systems are typically managed by HR areas as well. he HR team should communicate individually with employees and give clear feedback or suggestion on their performance. It is also the mechanism by which organizations address problems within their work force, through institution of disciplinary measures. 

4.  Maintaining Work Culture

It is the duty of the HR to maintain a healthy, safe, and fun work environment to ensure a level of comfort amongst the employees and eliminate any stressful or awkward atmosphere that may hinder the performance of the staff. It is vital to have an efficient work atmosphere because of an individual’s performance largely depends on the surrounding he's working in.

It would be great to have an open-door policy up to some extent wherein employees can freely communicate and voice their opinions to be given consideration. The HR department’s role is to be a friendly body with an open attitude. By communicating and treating every employee as equal, HR can build a rapport with the employees. This goes a long way in increasing employee engagement and gives a higher job satisfactio

Other responsibilities in this area include safety and health and worker-management relations. Human resource maintenance activities related to safety and health usually entail compliance with federal laws that protect employees from hazards in the workplace. 

Maintenance tasks related to worker-management relations primarily entail: working with labor unions; handling grievances related to misconduct, such as theft or sexual harassment; and devising communication systems to foster cooperation and a shared sense of mission among employees.

5. Compensation and Employee Benefits

Fair compensation is a key Human Resource Management role. Work is not done for free. Compensation that is seen as fair will motivate employees to do their best and to stay with the company.  Employees work for more than just pay. Creating the right benefits for employees is crucial in retaining key talent.

We know from the literature that at a certain point extra pay doesn’t make employees happier. However, the right benefits might. Common benefits are extra holidays, a learning and development budget, extra paternity leave, a childcare budget, et cetera.

The easiest way to select the right benefits for your employees is to just ask them. Some employees value learning and development, others look for extra pension plans, and a third group may want company-organized childcare. By accommodating these needs, HR can create tremendous value for individual employees that leads to increased motivation, satisfaction, productivity, and retention.

6. Resolving Conflicts

Where different people have different views, conflicts are almost inevitable. Whether the dispute is amongst two or more employees or between the employee and the management, an HR manager has the right to intervene and help map out a solution.

The HR should be available at the disposal of the conflicting parties and hear out their issues without being judgmental. Prior investigations are a must before passing any judgment. The HR head is not expected to discriminate or play favorites in this matter and always deliver an unbiased and practical decision. A reimbursement in case of any loss caused and strict actions against the defaulter should be practiced for effective conflict resolution by the HRM.

7. Legal Knowledge

This may seem the least glamorous of all, but is an important aspect of the HRM. An HR manager should always be in compliance with the law. Whether it’s drafting new policies or writing terms of a contract, it is the HR department’s job to build guidelines keeping the laws in mind. This ensures an organization’s continued growth and existence. While drafting policies, the HR should always ensure to be at an upper hand legally and keep the organization’s practices in tune with the labor laws, tax laws, permissible working hours, minimum wages, and a no-discrimination policy.

8.  Management

Management is the most important job of an HR manager. It is what defines a good HR manager. Management extends right from managing employees to managing the employers and the whole HR department as well.

The role of an HR manager is to manage, create, implement and supervise policies/regulations, which are mandatory for every employee and also have knowledge of its appropriate functioning. Monitoring attendance and tracking leaves forms a major chunk of the HR management function. There should be a proper management of the clock-in/out time to avoid late arrivals and track overtimes and half-days. As mentioned before, the HR as a department should also be well managed by the HR head. If the HR department itself is in a state of chaos, it cannot serve as a peacemaker for the other departments.

9. Payroll Management

Once all the attendance monitoring, leave tracking, clock in/outs etc is tracked and monitored, it’s time for the most important aspect--calculating the payroll. Efficient calculation of salaries, wage-cuts, reimbursements, and generation of pay slips amounts to the role of HR managers in payroll management.

The HR manager should maintain transparency and provide the employees with information as and when asked. The HR should ensure not only accurate calculations of salaries but also a timely transfer of the same. They also have an obligation towards exiting employees in settlement of dues and compensations.

TOPIC 3:  Methods of Revenue Generation by Media Organizations and Start Ups

Media houses make their money through Direct Payment and Indirect Payment. Direct Payment is the money a consumer pays the media house in exchange for a good or service. This would be the payment from the consumer for a newspaper, paying to call into a radio station or paying to receive cable. Indirect payment is money companies earn outside of what the consumer pays for. Companies use their platforms to place advertisements and direct payment by politicians for advertise amongst their content for consumers

A revenue model is a conceptual framework that determines and explains the revenue earning strategy of the business.

Revenue Generation by Media Organizations

Advertising

Advertising is the most common of all revenue models in traditional media and online. TV shows, newspapers, and websites offer their content (programming, news stories, etc.) at no charge (or at a low price) in order to attract a large audience. Advertisers wanting to promote the products they're selling pay the media outlets, who in turn place ads in between their content for the audience to experience.

Advertising is most commonly used in media outlets that 1) can't cover their entire costs just by selling their content (like newspapers and magazines), and 2) would have little to no audience if they charged (or charged more) for their product. For example, a newspaper would never sell at $5 per copy, and you wouldn't pay $30 for a movie ticket, so advertising is there to subsidize the cost.

Subscription

Subscriptions are great for media types that are continually being updated - think a newspaper, a magazine, or cable TV - or have some kind of ongoing value - think websites like LinkedIn or informational databases. Subscriptions are popular with media companies because they provide steady revenues over time. This revenue model doesn't work with media considered a commodity - something you can get elsewhere for little to no cost. An example of a media commodity is news - you can get it all over the web, so paying for a subscription to a news website means that site should provide significant value beyond the common news found elsewhere. The Economist and the Wall Street Journal are examples of news websites that offer significant value beyond what you might find for free on Google News.

Pay-per-item

The pay-per-item model works for media types that come in an individual package, offer no ongoing value, and are sustained through sales alone. An example of this is a pay per view movie on cable, a movie ticket at your local theater, or a CD or DVD.

Merchandising

Media companies use merchandising as a secondary, or ancillary, income. This is popular with recognizable media franchises whose fan base would want to purchase related items. An example might be the merchandising efforts of a company like Disney, which produces and sells merchandise for all of it's big-budget movies and TV shows. Many times, merchandising efforts earn more income than the media product it references. For example, the original Star Wars movies earned more income through merchandising than through ticket sales.

Affiliate Revenue Model

Another popular web-based revenue model is the affiliate revenue model, which works by promoting links to relevant products and collecting commission on the sales of those products, and can even work in conjunction with ads or separately.

Advantages: One of the most obvious benefits of employing an affiliate revenue model is that it generally makes more money than ad-based revenue models.

Disadvantages: If you use an affiliate revenue model for your startup, remember that the amount of money you make is limited to the size of your industry, the types of products you sell, and your audience.

Freemium Model

The freemium model is one in which a company’s basic services are free, yet users must pay for additional premium features, extensions, functions, etc. One of the biggest companies to use this model is Linkedin, the most popular business/social media platform.

Advantages: Similar to the previous model, the freemium model offers something free to users, which is a great way to give them a taste of your product or service while simultaneously enticing them to pay for something later on.

Disadvantages: This model requires a considerable investment of time and money to reach out to your audience, and even more effort to convert free users into paying customers.

Funding for Startup

Self-Funding / Bootstrapping

Many entrepreneurs start with some level of self-funding (also known as bootstrapping) and, in fact, future investors likely will want to see that you have some “skin in the game”.  

You also can use your initial profits to bootstrap future growth instead of relying on future funding rounds.

Friends and Family Investors

Your friends and family may be willing to help you grow, and they probably wouldn't make you jump through the many hoops. These investments generally are some type of loans or stock purchases and are something later investors will likely find to be a positive (i.e., if your family and friends don’t believe in you, why should the investor).

Crowdfunding

Crowdfunding is quickly becoming a popular way to help fund a startup. In the traditional approach to crowdfunding, you offer a first-run product or some other incentive in exchange for a monetary contribution. Contributors receive no equity and are not entitled to be repaid.

Incubators / Accelerators

Incubators and accelerators generally provide groups of startups with workspace, business advice and training, and potential funding. They are often sponsored by universities, industry organizations, or individual companies. You can learn more about what you should do to legally prepare for the accelerator program beforehand in our guide here.

Venture Capitalists

Venture capitalists are professional investors who invest in startups and growing companies. This makes them a receptive audience when you're looking for investors to pitch. However, you'll generally need to be past the earliest stages because the typical venture capital investment is $1 million or more. It may also take many months to close the deal.

Loans / Credit Cards / Debt

New businesses can find it challenging to get a traditional loan from a bank unless they have business assets for collateral and/or are willing to personally guarantee the loan (e.g., by putting up the equity in their house).  However, the federal Small Business Administration (“SBA”) offers several small business loan programs that can help you get approved.  Some entrepreneurs also may utilize credit cards, microloans or venture debt to finance their companies.

Small Business Grants

Grants provided by the government or private organizations can provide free funding. To receive a grant, your company may need to be engaged in some sort of societal good or specialized area, such as education, medicine, or alternative energy. You can search for grants at grants.gov.

Revenue Generation by Startups 

Markup Revenue Model

In simple words, earning profits by selling goods at a price which is higher than its actual price, this margin includes all the profits, commissions and additional costs. They buy the product from the manufacturer, before selling it to the consumer. E-Tailers, retailers follow this type of revenue model.

Commission Revenue Model

Charging a fee or a commission for providing a platform, to connect a provider with a consumer. They charge a commission based on service or item being sold. The commission may be fixed or maybe a percentage of the selling price. This business model is highly popular in generating a revenue stream, especially for various internet companies. Aggregators like Ola, Payments wallets like Paytm work on this business model.

Subscription Business Model

Charging a periodic fee for a specific service. Most common for OTT (Over the top) platforms and SaaS (Software as a service) providers to generate revenue. The periodicity can be weekly, monthly or yearly, based on the service and its provider. A subscription for basic access in addition to some extra charge contingent upon use. An essential telephone utility pays a pre-decided expense for a month to month use yet may have additional charges for extra administrations, for example, significant distance calls, registry administrations and pay-per-call administrations.

Arbitrage Business Model

This business model works on the price difference of the same product in different markets. Currencies, bonds, commodities are traded in different markets and the profit generated through the trading results in cash flow. This revenue model is usually a low risk one but might result in heavy losses if a currency gets delisted due to heavy inflation.The arbitrage online system is a publicizing procedure which includes purchasing traffic from a site that coordinates to your webpage and selling promoting space on your site. Utilizing this basic method the potential for cash making is boundless.

Advertising Revenue Model

Money is generated by providing a platform for companies or individuals to display their advertisements. Social media platforms earn through this business model. This revenue model is highly profitable if successfully implemented. A provider might charge an advertiser based on duration and area, if present in an offline channel or based on clicks and views in the case on online channels. Facebook, Instagram, and various magazines and newspapers follow this model for generating cash flow. This revenue model is easy to adopt if you have greater regular audience and you can easily earn more money.

Licensing Revenue Model

Most inventors and owners of any intellectual property earn by providing a license for their invention. People who have patented their inventions follow this revenue model. The license amount is dependent on time, region and volume. Software providers like Microsoft follow this business model to generate a revenue stream. A licensing revenue model allows technology producers to monetize their new technology products by licensing them to other companies so that they may be integrated into an end-product.

TOPIC 4:  Managing Cost and Revenue Relationship

For companies at every stage of development, accurately measuring profitability is crucial to the creation of effective business practices and financial management. When you know how to calculate profitability and evaluate the profit for startups, no matter the sector, you can become  successful.

Businesses, accountants, and financial analysts use numerous metrics to measure profitability in different contexts—net income is probably the most well-known of these metrics.

From startups to blue chips, every company needs to keep a close eye on the bottom line. Net income reflects the amount of revenue that remains as profit after accounting for all expenses, debt, income streams, and taxes. However, while it gives a bird's eye view of profitability, sometimes the devil is in the details.

However, there is a lot more to running a business than just adding up sales figures. Producing goods and services costs money before it makes money. Gross profit is a measure of profitability that accounts for the cost of creating products for sale and is calculated by subtracting the cost of goods sold (COGS) from total revenue. COGS includes all expenses directly associated with producing goods for sale, such as the cost of raw materials, labor to create or assemble products, shipping, and freight costs.

If a product generates a huge amount of revenue but costs almost as much to produce, there is little profit left over to invest in future growth. A startup with inefficient production will quickly find itself floundering.

At the next level, it is important to ensure day-to-day operations are not an unnecessary drain on cash flow. Operating profit measures the amount of revenue that remains after accounting for operational expenses, such as rent, utilities, wages, and insurance, in addition to COGS.

Revenue vs Expenditure for Radio

Sources of revenue for Radio

• Radio Commercial is the major (50 -60 percentage) source of revenue for radio.

• Promotion and publicity of films, product & services also contribute a sizeable amount of revenue.

• Other sources of revenue mainly include sponsorship , SMS contest royalty, rent on production facilities and equipments, etc.

Expenditure for Radio

• Expenditure for radio are radio programme productions

• Transmission of programme cost through AM,SW and FM.

• Purchasing of new equipments, maintenance of equipments, subscription fee paid to different agencies and so on.

• Salaries of employee, transportation cost, office & studio rent etc.

Funding Challenges for Radio

• Growing popularity of Internet radio is a big challenge for the traditional radio stations ( FM, AM).

• Internet radio stations have been drawing listeners away from traditional radio stations.

• Some experts believe that Internet Radio is fragmenting the audience, thereby decreasing the revenue.

• Growing popularity of iPod & MP3 players have been threating the existence of Radio

Revenue vs Expenditure for TV

Sources of revenue for Television

• Television commercial (TVC) , which generates around 55 to 60 percent revenue. is the most important source of revenue for a television.

• Selling of time slots to different producers is another important source of revenue.

• Revenue sources like royalty, taxing artists/performers for their extra income

• Rent on production equipment’s, selling of exclusive news material to some other units, entertainment show, etc. help to earn a sizeable amount.

Expenditure for Television

• Expenditure for TV programme production

• Transmission cost

• Payment of salaries to staff

• Purchase of equipments& maintenance of equipments

• Use of satellite facilities- downlinking &uplinking

• Subscription to agencies are mainly included in the expenditure list.

Funding Challenges for TV

Although experts believe that TV will continue to be a major marketing and entertainment tool long into the future but the medium has been facing stiff challenges in generating revenue.

Experts believe that there are two reasons behind such declining trend

• Effectiveness of TVC is declining.

• The cost of production & time slot of television commercial are going up.

UNIT 4

TOPIC 1: Marketing Media Products

 

Marketing Media products is a strategic planning in order to promote various media products, brands and services through established channels to engage potential and existing customers. 

Media marketing encompasses many different mediums, including offline as well as online promotions, namely, display advertising, content marketing and social media promotions.

Media products usually comprise two components: a nonmaterial element (journalistic, fiction, persuasive, etc., called content) and a material element (whereby the content is distributed and made accessible to consumers, typically referred to as a platform). While both components function in tandem in the market as regards meeting needs, consumer demand is primarily linked to content.

 

Ways to market a Media Product

 

Create a Brand

Don’t just sell your content, sell the benefits of your media product. The more you create a niche for your magazine/film/etc, or develop a specialized image or brand, the more likely you can generate an affinity for your publication with specific consumers. Consider a name change if your publication’s title doesn’t tell the marketplace exactly what’s inside. Put a photo or illustration on the cover that relates to the reader, not just a feature in that issue. Consider the impact that ads touting cheap goods would have on the image of an upscale magazine, and set advertising parameters, including for quality of design, for your sales department. Align yourself with charitable causes to send a message to certain target readers.

 

Digital and Social media advertising

I’ve seen quite a change in the effectiveness of social media advertising. Fewer people click nowadays, but a decent amount of people will actually view and engage, depending on the content. So, there’s some benefit to targeting people within a media company’s audience on social media – especially on Facebook.

But this is a strategy best used to reach locally relevant audiences – the audiences that want to consume their content right now. Of course, I sometimes see newspapers do Facebook advertising but it’s usually a real hard sell: pick up today’s paper at the store, for example.

In a content marketing related strategy, I would recommend advertising stories that are relevant but are not necessarily homeruns on their own. Gently push more readers back to your site, which can then help increase audience size, eventually helping with advertising revenue

Example, Empire, a musical drama series on FOX, did Twitter marketing masterfully when it encouraged followers to tweet their questions about the show for a video response from one of the show’s leading stars Taraji P. Henson in return. Henson’s character, Cookie, became a branding tool for the television series when the cookie emoji was incorporated into every hashtag and the promotional gimmick of the show’s Twitter account. Through these clever initiatives, Empire gained social media success when it generated over 358 million social impressions online.

 

Email Marketing

Email marketing works and content marketers use email pushes to their full advantage to stay connected to their audiences. Of course, media companies do the same and many have good-size email lists. One thing to keep in mind is that content marketing strategists often use the latest tools to quickly grow their lists:

• Facebook retargeting to grow lists

• Sign up placement testing on the website

 

advertising

Traditional and social

With advertising, it is important to find the right “media mix” with tactics that may include online advertising, billboards, magazines, TV, radio, and direct mail rather than relying solely on one form of media.

An effective ad strategy is also one that includes:

• Determining the right frequency to ads to avoid spreading the allotted ad budget too thin

• Selecting the right media mix

• Using media that targets the primary audience/consumer group

• Hitting target demographics repeatedly to keep the featured products/services visible

 

Targeted advertising does actually work. And it’s not always about spending more money. It’s about spending money more wisely. Especially when an organization is going after a relatively broad geographical or targeted topical market, this is a very useful strategy.

Serve content-related ads to the people that are in your area but that might not be reading you all that often. Have an interesting story? Create an ad and serve it to your target audience as a display campaign. When possible, also tie it into search engine marketing and go after people who are searching for related things in your market.

 

PR and Launch

• Do Something Remarkable – The Publicity Stunt

 

Example, Netflix fueled the media fire with this large-scale installation by noted Aussie artist James Dive.

 

The stunt was reported on by both online and print media, and showed up on the social media feeds of countless enthralled passers-by - and Netflix didn’t have to pay for a single cent of that publicity. The one investment of a giant umbrella lead to local influencers sharing posts featuring the umbrella for weeks, drumming up some serious publicity for the new teenage drama.

 

• Be Smart with Press Excursion/celebration

• Featuring on Talk shows to promote

• Press releases

 

Cross Promotion

cross promotion with other shows or products. Sometimes selling a product endorsed or branded with the show or characters builds identity and engagement.

 

TOPIC 2: Media Business: Innovation and Entrepreneurship

Media industry fight to stay on top, emerging technologies offer the opportunity to identify alternative business models. We share actionable insights into these technologies and the startups driving them in our Media Innovation Map.

The Media Innovation Map includes six emerging technologies and the startups driving them. Media companies seeking to innovate in these disruptive surroundings need to pay close attention to these areas – so let’s see what’s next: 

Innovation

Personalized Content

Generating a higher probability of converting individuals into consumers, delivering the right content at the right time has a significant impact on the effectiveness of content. According to Forrester, 67% of European- and US-based marketing executives already make use of behavior-based user data to generate content and increase revenue. Personalized content is one of the most promising innovation areas in the media industry.

Automatic Content Recognition (ACR)

ACR enables companies to determine the content that is stored or played on a device, delivering essential insights from image or video content. Automatic content recognition advances to a new generation of hard- and software, anticipated to strengthen the use of the Second Screen. Immersive interactivity, real-time TV commerce, and syncing tablets with a TV will be the some of the opportunities resulting from this emerging technology.

Mixed Reality

The blend of augmented and virtual reality establishes mixed reality or hybrid reality, which functions through scanning a user’s surroundings subsequently constructing a 3D map to locate an individual before optimally placing digital content according to the information detected. Involving users in this way sets new frontiers within the media industry, with 360° videos acting as the first step toward this progress.

Natural Language Generation (NLG)

A subfield of natural language processing, NLG deals with the translation of data into natural, human language. Drawing on artificial intelligence (AI), natural language generation is already used to create weather and simple sports reports as well as to assist journalists in more demanding tasks. NLG is a powerful technology, predicted to “win a Pulitzer one day”.

Live Streaming

Already popular on social platforms, live streaming is not a new phenomenon in the media sphere. Nonetheless, live streaming will dominate the media landscape due to its interactive nature and high entertainment factor.

Live streaming events, shows, and gameplay have already become a popular form of entertainment among Millenials. With the implementation of 5G network and specialized cloud platforms, streaming will not be limited to passive media consumption, but also allow users to play PC/console games via stream on any device at any place

Programmatic Advertising

Programmatic advertising refers to the automatization of buying and selling ad inventory, building a bridge between advertisers and publishers. This technology equips media companies to target the right audience at the right time. At the same time, analyzing user behavior becomes simpler with the support of AI making it possible to target users with ads optimized in real-time.

Artificial Intelligence 

Some creators in the entertainment industry have started to implement Artificial Intelligence to create content such as music, movie plot points and trailers based on market data analytics and box office numbers. Through deep learning algorism, AI increasingly supports creators to be more efficient in creating content tailored to market demands.

Connected Home

The Internet of Things (IoT) and 5G network allow every entertainment technology to work in junction to deliver the best user experience. Content creators can fully utilize all connected devices, such as lighting, room temperature, and other 4D equipment to create next-level experiences.

Curated Content

Overwhelmed by the extensive amount of information available, it has become increasingly difficult for consumers to find content that matches their individual interest. Content providers rely both on AI, influencers and consumers’ own initiative to generate and share personalized Curated Content.

3D/4D

In addition to widely available 3D screen technology and AR/VR headsets, sensory factors such as smell and rain grant viewers to become part of the world that is appearing all around them. Connected entertainment devices can work in juncture to provide a next-level experience to consumers while cloud-based platforms capture, measure, and analyze data for future improvement of content.

Gesture Control

Gesture Control blends voice, gesture and movement tracking together to provide a more intuitive control interface to traditional devices and in AR/VR environment. This natural user interface (NUI) allows for the interaction and control of a computer system without physical contact and is crucial in adding an immersive experience to VR/AR content.

Drones

Today’s consumer drones equipped with advanced camera systems can already produce close-range aerial filming and photography. Moreover, professional drones have become an indispensable part of video production across the industry. Drone flight live-stream and virtual piloting in augmented or virtual reality will bring the next level of drone entertainment.

Subscription On-Demand

Subscription On-Demand transforms entertainment business models into Content-as-a-Service (CaaS) models that allow companies to deliver better services and high-quality content or experiences to consumers while generating consistent revenue. After having transformed the music and TV/movie industries, Subscription On-Demand is moving to real-world entertainment experiences such as movie theatres, cultural events, and concerts.

Entrepreneurship

Disruptive Startups In The Media Industry Include:

• Madrid-based Narrativa develops the NLG solution GabrieleAI, capable of enriching context in order to provide a point of view.

• Israeli startup Jinni creates the Entertainment Genome, qualified to understand each individual’s unique entertainment taste, thereby providing the perfect match between individuals’ preferences and content titles.

• Dutch startup Beatgrid Media offers three distinct ACR solutions to help broadcasters raise awareness, to provide a real-time overview of TV and radio spots and to allow the audience to identify and engage with their favorite shows.

• Vienna-based Stereosense brings 360° VR video to media content by creating 360° video and image libraries, allowing users to stream or download the videos on-demand.

• Live streaming service Twitch reached a staggering 45 million unique users within its first two years by providing users with content related to video gaming, creative content and music broadcasts (live stream and on-demand).

• PulsePoint pioneers programmatic advertising to automate buying and selling decisions across a global platform and includes programmatic video, programmatic mobile, and ad exchange.

• Implemented in gaming, augmented reality opens many doors. One of those is opened by Ukrainian startup WeAR Studios. The company creates full cycle AR development with the purpose to assist computer game lovers to go beyond their imaginations and turn any space into a game portal – bringing games into a physical space.

• nCube, a London based Smart Home startup, has built a smart home hub based on Z-Wave technology. The smart home hub is compatible with numerous smart device producers and cancontrol every aspect of their smart home via nCube App.

• Belgian ScriptBook uses artificial intelligence to quantify story-parameters into a predictive modelthat enables stakeholders in the film business to avoid box office flops. The startup’s solution Script2Screen analyzes screenplays and delivers an objective assessment of a script’s commercial and critical success.

• Curata employs machine learning, natural language processing (NLP), and artificial intelligence to power two software platforms, Curata Content Curation Software (Curata CCS) and Curata Content Marketing Platform (Curata CMP). The startup’s software allows companies to discover content via their self-learning engine, organize and contextualize as well as publish and promote it across blogs, social channels, and newsletters.

• VisiSonics leverages scientific discovery to add a third dimension to the sound consumers hear electronically, bringing 3D sound to gaming, virtual reality, and entertainment (movies and music) platforms. In addition, through its RealSpace™ Audio Panoramic Camera the startup can capture, measure, analyze, and reproduce natural, fully dimensional sound in any environment.

• London-based FlickTek delivers solutions to enhance user experience through seamless technology interaction. With a background in biomedicine and engineering, the startup creates technology capable of detecting and interpreting human bio-physiological signals to control electronic devices such as smartphones or computers.

• German Skynamic believes that “Close Range Aerial Filming” will play a key role in how to use camera drones in the future. Their team of skilled pilots is experienced in flying cinema lenses such as Standard Primes, Ultra Primes, Highspeed Primes, or Anamorphic

Kowa. While also providing VR 360° rigs, the startup offers live streaming via SDI directly to the broadcasting van to capture unique images that tell a story.

• DaCast develops a live stream hosting platform designed with a Streaming-as-a-Service approach providing a flexible, pay-as-you-go solution to content owners and broadcasters. The startup claims to generate revenue in just 20 minutes – giving entertainment companies a new way to compete in this market.

• Vodworks provides over the top (OTT) solutions to the media industry. Having created so-called VidScape technology, the startup offers a customizable video and data management platform, multiscreen apps as well as content discovery and recommendation for online TV and global video distribution

50% of all spending in media will be dedicated to digital affairs by 2021, a clear indicator that digitalization is the single most important innovation area actively shaping the media industry. Collaborating and co-developing new solutions together with cutting-edge startups puts established 

The innovation areas named in the Entertainment Innovation Map not only improve the availability and adaptability of entertainment content but also make the user experience more connected, mobile and immersive.

This shows that in order to survive, it is not enough for entertainment companies to create more interactive and complex content; they must also change their business models accordingly. As it is vital for companies to act now to swiftly adopt new technologies, at StartUs Insights, we support you in getting an early start by facilitating the collaboration with pioneering startups as well as providing actionable Innovation Intelligence.

TOPIC 3: Media Entrepreneurship and its Challenges

 

It is the creation and ownership of a small enterprise or organization whose activity adds at least one voice or innovation to the media marketplace.

“Individuals or small firms of which use their own or others’ resources to create value by extracting opportunities via offering a service or product that is consist of any type of innovation in any of product/service characteristics, process, distribution channel or place, or different innovative usage, to the media market, or any other market that media is its main channel of interaction”.

"The concept of innovation and newness, as act of introducing something new and relevant, is an integral part of entrepreneurship." (Hisrich and Ramadani, 2017, p.4) and inevitably of media entrepreneurship. Khajeheian (2014) articulates innovation in characteristics, process, distribution channel, usage, etc. Ireland et al. (2003, p. 981) introduce disruptive and sustaining innovations.

Challenges

1.  Cash flow management

The challenge: Cash flow is essential to small business survival, yet many entrepreneurs struggle to pay the bills (let alone themselves) while they’re waiting for checks to arrive. Part of the problem stems from delayed invoicing, which is common in the entrepreneurial world. You perform a job, send an invoice, then get paid (hopefully) 30 days later. In the meantime, you have to pay everything from your employees or contractors to your mortgage to your grocery bill. Waiting to get paid can make it difficult to get by — and when a customer doesn’t pay, you can risk everything.

The solution:  Proper budgeting and planning are critical to maintaining cash flow, but even these won’t always save you from stressing over bills. One way to improve cash flow is to require a down payment for your products and services. Your down payment should cover all expenses associated with a given project or sale as well as some profit for you. By requiring a down payment, you can at least rest assured you won’t be left paying others’ bills; by padding the down payment with some profit, you can pay your own.

Another strategy for improving cash flow is to require faster invoice payments. Invoice clients within 15 days, which is half the typical invoice period. This means if a customer is late with a payment, you have two weeks to address it and get paid before the next month’s bills are due. In addition, more and more companies are requiring immediate payment upon project completion — and in our digital age when customers can pay invoices right from their mobile phones, it’s not a stretch to request immediate payment.

And if you’re looking for an easier way to pay bills and save money, consider sending checks via email.

 

2.  Hiring employees

The challenge: Do you know who dreads job interviews the most? It’s not prospective candidates — it’s entrepreneurs. The hiring process can take several days of your time: reviewing resumes, sitting through interviews, sifting through so many unqualified candidates to find the diamonds in the rough. Then, you only hope you can offer an attractive package to get the best people on board and retain them.

3.  Time management

The challenge: Time management might be the biggest problem faced by entrepreneurs, who wear many (and all) hats. If you only had more time, you could accomplish so much more!

4.  Delegating tasks

The challenge: You know you need to delegate or outsource tasks, but it seems every time you do something gets messed up and you have to redo it anyway.

5.  Choosing what to sell

The challenge: You know you could make a mint if you just knew what products and services to sell. You’re just unsure how to pick a niche.

6.  Marketing strategy

The challenge:  You don’t know the best way to market your products and services: print, online, mobile, advertising, etc. You want to maximize your return on investment with efficient, targeted marketing that gets results.

7.  Capital

The challenge: You want to start or grow your business, but you have little capital to do it with.

8.  Strapped budget

The challenge: Even though cash flow is fine, it seems you never have enough in your budget to market your company to its full potential.

9.  Business growth

The challenge: We’re assuming you are growing, not that you can’t grow, and you’ve come to the point at which you can’t take on any more work in your current structure.

10. Self-doubt

The challenge: An entrepreneur’s life is not enviable, at least in the beginning. It’s extremely easy to get discouraged when something goes wrong or when you’re not growing as fast as you’d like. Self-doubt creeps in, and you feel like giving up.

 

 

 

 

 

 

 

 

 

 

TOPIC 4: Emerging Trends in Entertainment and Media Industry

 

Over the past decade, the media and entertainment industry has been at the cusp of rapid transformation. Digital media emerged as an alternative distribution medium, taking center stage across all sub-sectors like print, films, advertising, gaming, animation, radio and music. It has also proved to be a core revenue generation platform, compelling several media companies to adopt digital strategies to survive the fiercely competitive market.

Interestingly, all of this has vested more power in the hands of the customer and prioritising customer retention will be the most significant trend for 2020. Companies looking to increase their profits are turning to innovative tactics, including AI, AR/VR, and phygital to keep their customers engaged. Here’s a look at some of those trends expected to transform the media and entertainment industry in 2020 and beyond:

AI for Personalization and as a Service

Generating a higher probability of converting individuals into consumers, delivering the right content at the right time has a significant impact on the effectiveness of content. According to Forrester, 67% of European- and US-based marketing executives already make use of behavior-based user data to generate content and increase revenue. Personalized content is one of the most promising innovation areas in the media industry.

One of the most transformative tech solutions in the past few years, AI has been used in numerous ways to improve customer experience and streamline business operations. This will continue in 2020 where media companies will continue working alongside AIs for personalized content recommendations and effective advertisements. 

Given the rising customer expectations, and demand for personalized content in recent years, media enterprises are increasingly under pressure from a wide range of competitors. Top players have moved past from just suggesting the content customers might like to creating content customized according to their choices. 

Reports show that 40% of Millennials and Gen-Z’ers are willing to pay for personalization done well. 

Using AI, and data based on user behavior patterns, media companies are able to personalize what ads to show to garner user interests. While the scope of this was for larger groups in the past, starting 2020 this will zero in for more specific buyer personas, and eventually be targeted for individuals!

Forbes is using an AI bot named Bertie, which recommends article topics for contributors based on their previous output, headlines based on the sentiment of their pieces, and images too.

Leveraging AI makes the process of creating new content more efficient for businesses, publications and online creators. Creation of new ads, movie trailers can be done, with AI streamlining all pre- and post-production processes. Big data and machine learning are two other technologies aiding AI in its mission of bringing enterprises closer to customers.

Apart from that, 2020 will also see a growing pool of providers like Amazon, Google and Microsoft, start offering more tailored applications and services for specific organizational tasks. Therefore designing and deploying their own AI-based systems will also remain an expensive proposition for most media companies this year.

Virtual and Augmented Realities

In 2017, The Global Entertainment and Media outlook forecast predicted that by 2020, VR content revenue would increase to $5 billion, making it one of the hottest trends in the media and entertainment industry. And even though the use of AR and VR in the media and entertainment is relatively new, enterprises are rapidly adopting these alternate realities to meet the growing customer demands. 

VR has an array of applicability in the entertainment industry. In gaming, 3-D games are developed with the help of VR and biosensors—for the positioning of players. It also helps in creating virtual museums, galleries, theatre, and theme parks.

AR has been trending in gaming; we all know how much popularity Pokémon GO gained in no time.

Disney’s app—Play Disney Parks—also enables visitors to play games based on Disney themes while standing in the queues. Besides that, AR enables real-time 360° coverage in news reporting in order to give a satisfying user experience. 

The coming year holds very exciting opportunities for AR and VR, bringing the possibilities of allowing a person to view three-dimensional images, that appear as life-sized to them.

Online Streaming and Smart Media

Apart from leading players like Netflix and Amazon, several others like Apple, Disney, HBO Max and Warner Media are joining the streaming domain, making it even more complex. There’s an increasing competition, coupled with the need to meet customer expectations. However, on the bright side, the craze of Subscription Video On Demand (SVOD) is also rising.

Enterprises are leaving no stone unturned to have an edge over others, leveraging technologies like AI, machine learning, alternate realities to up their game. 5G is another trend in demand because of its high connectivity and faster data transfer, that enables a smooth, seamless user experience for VR. It also obviates the need for wifi network for video streaming. 

Then there’s also the need to create smart media, content that users can interact with. Netflix came up with Black Mirror: Bandersnatch last year, that received wide appreciation because it enabled users to interact and make decisions to influence the direction of the further story. 

2020 opens the door for more such interactive content by the media enterprises that not only entertain viewers but also influence it with their decision making.

 

Focus on the Enterprise

While media enterprises are rapidly focusing on the tech side of the digital transformation, they often end up spending more than their profits, particularly, to stay ahead of the market competition. While that might be important up to an extent, there’s also the other side that needs more attention. That you need to start focusing on building intelligent enterprises—not just cool and exciting media arms.

2020 is the time when you should start making investments in tools and technology that ensure higher efficiencies, lower spending and more efficient work processes. Processes that empower great publishing experiences for your editors should be on your to-do list. Continuous improvements should become a part of your strategy to ensure that the ROI from your tech investments are measurable and ideally increasing. 

Digital transformation in media and entertainment has brought tremendous innovation to the consumer, and it is important that you apply the same effort to the back office to make sure your operations can support growth as well as scale profitably. 

 

Decentralized Distribution and Data Privacy

Last few years saw an unprecedented rise in the number of fake news and videos, while also risking the misuse of customer data. In 2020, media companies are expected to exercise more control over their data, use AI algorithms to detect and block deepfakes, as well as trace their creators to make data privacy and security a top priority.

Deloitte’s most recent Digital Media Trends Survey shows that consumers still fear identity theft, financial loss, and unauthorized use of sensitive data—largely because many have experienced these threats directly. They are increasingly demanding the same level of control over their personal data that they enjoy in crafting their home entertainment experience.

Blockchain has the potential to completely transform the industry, as it eliminates the need for an intermediary from entertainment and media distribution. With direct access to the consumers, media companies are in a much better place to distribute original content, while also ensuring transparency and traceability. 

Apart from these, there are a few other trends that would have a significant impact on the media and entertainment industry. Wide adoption of voice media, re-innovating how radio is used, leveraging AI based advertisements to influence decisions are some prominent ones. 

Overall this year is going to be crucial for media-marketers, and to survive the rapidly changing market conditions, they need to focus both on what they deliver, and how they deliver it. Media companies need to to regroup and get serious about using technology not only to cater to their fan bases, but to make smarter connections while driving greater profitability into the business.