Negative Outlook for Indian Media & Entertainment: Fitch Ratings

Fitch Ratings says that the outlook for the Indian print media and TV broadcasting sectors is negative in 2012, as growth in advertising spending is expected to slow down due to the moderating economic growth and cost reduction initiatives by corporates.

Fitch notes that TV broadcasters generate 70%-90% of revenues from advertising compared with about 70% for newspaper publishers, and are therefore likely to be the worse hit in this area. However, the broadcasters that have diversified their revenue base towards subscription are expected to perform better than those with a higher exposure to advertising revenue.

The report, "2012 Outlook: Indian Media & Entertainment - Reduced Advertising Spending Threatens Margins", is available on www.fitchratings.com.