Economic reforms and the need for investments in the media industry were the main factors that were responsible for liberalising foreign investment rules in the print media in 2003. In 2004, the media industry was valued at USD 6.5 billion and was expected to experience high growth in advertisement expenditures (triggered by DTH services).

Footfalls of Indians visiting the cinema were much higher than Asia’s combined footfalls  despite the fact that multiplexes comprised only 2 percent of India’s 12000 theatres. In spite of television penetration witnessing a high growth rate, it is currently positioned at only 60 percent. However, a few media sectors, such as the radio, are as yet in their nascent stage. With regard to India’s per capita advertising spend, it was one third of the ad spend in China and 2 percent that in Europe.

Till date, the highest investments were being made in television. Foreign players were the biggest participants in this area since the early 1990s with Star TV and Sony as the leading broadcasters of the television industry.