The Adani Group has announced the incorporation of its wholly-owned subsidiary, AMG Media Networks, with an initial authorised and paid-up share capital of `1,00,000 each to carry on the business of media-related activities. These include publishing, advertising, broadcasting and distribution of content over various media networks.
In a statement, the Gautam Adani-led conglomerate announced that AMG Media Networks will commence its business operations in due course. Adani’s latest move will pitch it against Mukesh Ambani’s Reliance Industries that owns Network18, as well as other key players in the business such as Disney-Star India, Times Group and the newly merged Zee and Sony entity.
Last month, Adani had also announced a minority stake in Quintillion Business Media (QBM), an indirect subsidiary of Quint Digital. This covers only the digital business news platform QBM, and not Quint Digital’s other properties such as The Quint, The News Minute and Youth Ki Awaaz. In September last year, the Group appointed veteran journalist Sanjay Pugalia as its new CEO and editor-in-chief. Pugalia, who incidentally is the former president of Quint Digital Media, has been tasked with managing Adani Group’s media, communications and branding across its businesses.
More media investments are good for the industry because they mean greater options for the consumer, more opportunities for professionals, growth for the economy and a more competitive market, Paritosh Joshi, principal, Provocateur Advisory, said. “On the flip side, large corporate capital entering into media spaces across the world has not necessarily proven to be supportive of increasing plurality and widening choice,” he said. “In fact, quite often, it has worked in the exact opposite direction. It is not surprising that a relatively late arrival in the corporate landscape, but by far the fastest-growing, would want to have a presence in the media sector as well, particularly in the news media.”
According to a Ficci-EY report released last month, India’s media and entertainment sector grew by 16.4% in CY2021 to reach a total of
1.61 trillion. The sector is also expected to recover to pre-pandemic levels this year, and reach an estimated1.89 trillion in CY2022, assuming that the pandemic doesn’t create further disruption.
The report notes that TV ad registered the highest ad revenue growth last year to hit
31,300 crore, followed by digital whose ad revenues touched24,600 crore. Print, one of the hardest-hit mediums, clocked
15,100 crore. Together, the three sectors commanded 95% of the total ad spend last year. CY2021 also saw digital subscriptions grow by 29% to5,600 crore, with nearly 80 million paid video subscriptions across almost 40 million Indian households.