Ronnie05's Blog

Data pipes as the new broadcasters

Posted in Industry updates by Manas Ganguly on June 2, 2012

In the course of business, large orgaanizations often diversify in other unrelated (and out of core) businesses and sectors. But over the course of last 2 months, two such advancements have caught my eye and i fancy a trend.

Aditya Birla has taken a 27.5% stake in Living Media– this includes TV Today also.

Earlier in the year, Mukesh Ambani had bought a stake in Network18 group of media properties.

The perspective that needs to be brought in here is that both Birla and Ambani have/or soon will have stakes in the telecommunication industry. Now, why does a data pipe buy into a media company. RIL and Birla purchases provide them access to captive content base for 4G networks. Amongst other things, RIL and Birla media-led purchases would mean that data pipes (Telecom operators) will start creating content, and controlling media networks for access through smartphones, tablets and other means. So lets say in a medium term future -after the roll out of the 4G enbaled mobile internet technology, data pipes will become the new broadcasters.

A trend showed be followed by a forecast. So, here’s how i see it – Bharti Airtel would possibly buy out a media company pretty soon. They aalready have the pipe for streaming entertainment through their satellite TV service already. Now its about joining the dots!

Wager a bet anyone?  



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