September 24, 2006

"Reach of English language media - including online - capping out"

Anand Sridharan quoting National Readership Study 2006 points out that "without significant inroads into vernacular content and reduction in bandwidth/PC costs" the size of Internet users in India is not going to be too exciting.
* English daily readership has been stagnant at 21 mn and makes me realize how small the 'People Like Us' segment really is. I also worry about our BPO sector that is estimated to have 1 mn people by 2008. By the time we apply an age-filter and a quality-filter to the English speaking universe (of which English daily readership appears to be an indicative proxy), the math to get to 1 mn seems touch-and-go.

* The internet numbers are much lower than the frequently quoted 38 mn. The English daily readership is indicative of how far internet in its current form can go, without significant inroads into vernacular content and reduction in bandwidth/PC costs.

Arun Natarajan is the Founder of Venture Intelligence, which tracks private equity and venture capital in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.

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