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November 18, 2007

Why Battery is keen on media deals

Battery Ventures' Ramneek Gupta and Mark Sherman have published an article on the Indian media landscape and themes their firm would be keen to invest in.

TV and Print are the two largest sectors in Indian Media with $4.25B and $3B in revenues respectively. Additionally, TV is expected to grow at a CAGR of 26% over the next 5 years.TV accounted for ~43% of the total media market in 2005, a share that is expected to grow to 55% by 2010.

We will be looking to leverage this mindshare with opportunities along the following key themes in India:

1. Local Advertising and infrastructure – There are very few mass media avenues available for local advertisers in India today with the exception of Print. We believe there will be tremendous equity value creation in this space in the near-term.

2. Audience measurement systems – Infrastructure and Data services companies focused on audience measurement that allow the advertisers to measure the efficacy of their advertising campaigns is another huge area of opportunity in India. Systems that can enable audience measurement across mediums (from TV to Print to Radio) will be key to the growth of advertising revenues in India.

3. Niche content / channels – With the growth and maturing of the audience in India, niche content channels focused on Education, Real Estate, Financial Services, Women, Wellness, etc. will be another key area of opportunity in India.

4. Intersection with Mobile / Internet – Convergence between new media (mobile and Internet) and old media (TV, Print and Radio) will give rise to new business models for customer acquisition, retention and monetization.
Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.