Media

Business Outlook5 May 2006

I Got Stung,

After BPO and KPO, it may be the turn of MPO (media process outsourcing). The most recent to be bitten by the bug is the Prannoy and Radhika Roy-owned media powerhouse NDTV which is setting up a 50:50 venture with the Rs 2,300-crore Genpact (formerly GE Capital Services).

Driving the MPO trend is the explosive growth of the global media and entertainment industry (by 2009-end, its combined revenues are pegged at $1,777 billion). At stake is a vast untapped outsourcing market for services such as editing, digitization, archiving, and dubbing worth billions of dollars. The NDTV-Genpact venture joins others in the fray like Cybermedia, Conversant and Mindworks. Well, happy hunting!

Ranjana Kaushal   

pdf articles

Contentsutra

NDTV-Genpact Media BPO Deal: SSKI Rates NDTV As Outperformer

By Sahad on Thu 30 Mar 2006 09:45 AM IST

Here is an analyst reaction to the formation of India's first MPO - or media process outsourcing - outfit. NDTV and Genpact created history yesterday by announcing a joint venture which seeks to provide outsourced media services. The joint venture will focus on providing cost-effective, high quality media services to global and regional media and entertainment companies in areas like editing, digitization and closed captioning. This is the first BPO in the visual media space.

A report from Mumbai broking firm SSKI rates NDTV stock, which currently trades at Rs 228-levels, as an outperformer. Here is their justification:

NDTV’s business model has been evolving from a news broadcaster to a more compelling and complete media play. With this in view, NDTV is making a foray into media outsourcing services space (editing, digitization and closed captioning) in an alliance with Genpact (GE Cap), half a billion dollar company and frontrunner in the global BPO space. The media BPO venture is first of its kind, and if taken parallel from the IT & ITES outsourcing space, where India accounts for around 4-5% of the global outsourcing, even an estimate of 1% of the media BPO getting routed through India converts into $15 billion opportunity. Given NDTV’s competency in the broadcasting and media space, a strong venture partner and first mover advantage, we are confident that it is best placed to make the most of the opportunity.

However, in print media, there are several other companies like Cybermedia group, Mindworks Media and Conversant Info Solutions trying to make a mark.

http://www.contentsutra.com/2006/03/