A Media Company, can be defined as a group or institution, which holds the ownership of businesses in various advertising for example TV, radio stations, publishing, movies, and also the Internet.
Nowadays, all successful brands invest in premium quality content that performs well on multiple platforms, cuts through audience division, and engages customers in real dialogue.
In the 21st century, customers have shifted away from traditional media to the digital form, this has made the media universe more widespread and fragmented. Consumers are now entitled to limitless content, on the device of their choice rather than the newspapers and television. Websites, blogs, apps, and social media have connected people to a new global market. Meanwhile, the struggle for the consumer’s attention has become brutal, and requires new strategies and capabilities. Companies have recognized these developments and know that the only way to survive is to be in the media business. Let us see the complete story and know about- How to start a media company.
The Media Industry
The Indian media industry is an emanating sector for the economy and is making tremendous growth.Proving its pliability to the world, backed by rising consumer demand and improving advertising earnings, mainly driven by increasing digitization and higher internet usage over the last decade, the industry is at an all time high.
The Indian advertising industry is estimated to be the second fastest growing advertising market in Asia after China. At present, advertising revenue count for around 0.38% of India’s GDP.
Growing by a CAGR of 10.90 per cent from FY17-18; the media industry is projected to grow at a CAGR of 13.10 per cent to touch Rs 2,660.20 billion (US$ 39.68 billion) by FY 2023 from Rs 1,436.00 billion (US$ 22.28 billion) in FY18.
Consumption of media by India has grown at a CAGR of 9 per cent during 2012-18, almost nine times that of US and two times that of China, providing employment to 3.5-4 million people, including both direct and indirect employment in CY 2017.
Revenue through advertising is projected to reach Rs 1,232.70 billion (US$ 18.39 billion) in FY23 from Rs 608.30 billion (US$ 9.44 billion) in FY18.
How to start a media company
In the 21st century there’s content everywhere, it’s a cumbersome task to start a media company in a salable manner. There is a no dearth of neither creators nor platforms. But, the sunny side to the story is that content is worth so much more than it ever was, also the umpteen number of platforms add to the advantage. Let’s look at some key points to start a media company.
- Recognize your audience. It’s crucial to know who are you focusing on and why? The passion of the crowd, what are their views on issues, which topics bring out strong reactions. You need to know a bit of everything about them to know a lot about them.
- Understand your value. Figure out what makes you and your service unique. Convey that message to your audience. Speak clearly through your services about your core values.
- Be ambitious and let people know about it. Big projects grab attention. The New European started after the Brexit vote with the goal of stopping Brexit before it was able to happen. Staying in the news would definitely raise your stakes.
- Offer a membership model. An audience which feels you speak for them is audience which wants to support you. Get them involved in the editorial policy or equity crowdfunding for key moments of expansion.
- Create members only content. Give membership the worth it deserves.This can drive more people to your content while also picking up money from the partnerships.
- Use third party services to bring high value adverts to your base. You know what products your audience like and want to buy. Tell a third party native advertising company and have them create content for you while you get paid for hosting that content.
- Use that affiliate marketing. When you’re linking to a product, be direct and tell your audience to buy it through the link so they can help keep your important content alive.
- Start a YouTube channel. Re-purpose your articles into a video with little efforts. Publicize your content across multiple platforms and grow those views. You won’t make much money from YouTube quickly, but it could start to bring in more money as you grow and lets more people discover your quality content. Face to face interaction builds connections and trust.
- Make sure your content is good. People would leave if you lose quality. Yes, the inside should justify the shiny outside. Stay true to your promises and give the reader a reason to want to click on the next article of yours that they see.
Registration and Licensing
1. Single man firm with unlimited liabilities.
Simplest way to start a business is to have service tax registration and open current bank accounts. Sole Proprietorship is preferred for startups with lower budgets.
2. Partnership Firm
At least 2 people are required. Requires a registered partnership deed with a current bank account and a Service Tax registration. Can be started when partners share common vision and profits.
3. Private Limited Company
It needs to have a minimum of 2 Directors with a minimum investment of 1 lakh. It’s best for startups seeking funds from investors.
4. Limited Liability Partnership
Combination of Private Limited Company and Partnership Firm, needs minimum 2 partners.Has higher agreement requirements as compared to an ordinary Partnership Firm. Ideal when your budget is less than 10,000 and you also want to enjoy the perks of setting up a company.
5. One Person Company
It is like a Private Limited Company but with only one person.
Also Read: Moushumi Pal, Founder, Woodpecker Media, On Women Entrepreneurship
Legal Procedure to start an online media company
- Register Domain Name:
Get a unique domain name for the online media business by paying registration fee. One needs to submit valid address and ID proofs. - Get Federal Tax ID Number:
This is to make your online business to be a separate legal entity. You need to get a federal tax ID number form Indian Revenue Services (IRS). IRS keeps a track of your business transactions. - VAT / Service Tax:
A company must apply VAT to its products and pay taxes to the government for services. - Memorandum of Understanding with Vendors / Contractors:
Be very precise while drafting Memorandum of Understanding with all vendors /contractors so as to prevent forged services. This may generate legal issues so you need to be careful while contracting. Therefore, add a disclaimer to all your services / products to get shielded from legal liabilities. - Investment in Data Security:
Invest in cyber security as this helps in safeguarding your customers’ financial transactions. A failure to protect customers’ data could cost you a sum of up to 5 crores in terms of fine. - Trade Mark Registration:
Very important for web based /online business. Register Brand or Logo with “Trademark”. - Website T&C:
Take care of the website’s legal terms and conditions such as privacy policy, disclaimer, and third party data. - Vendor Agreement:
Draft an agreement by enlisting requirements such as payment policy, refund, taxes applied to the services/products from vendors.
Also Read: 13 Benefits Of Guest Blogging [For The Guest Writer and The Website Owner]
Growth aspects and conlusion
According to KPMG India’s 11th edition of its Media and Entertainment (M&E) report:
- The media industry in India has marked a size of Rs 1,63,100 crore in FY’19
- Posting a growth of 13%, as well as a stunning CAGR of 11.5 per cent over the period FY15-FY19.
- Expected to post a CAGR of 13.5% over FY19-FY24 to reach a size of Rs 3,07,000 crore in FY’24
The Indian Media industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate.
Link : https://startuptalky.com/start-media-company/
Author :- Yash Gupta
May 29, 2020 at 07:22PM
StartupTalky - Your Entrepreneurial Journey Starts Here!