Issues (If there are other issues that you would like us to address, please write to Bhupesh Trivedi at publisher@chronosphere.biz):

Low advertisement page rates: Foreign publishers compare the average advt page rates of their editions, with the advt page rates prevailing in India. A typical comparison is US $ 5,000 in the USA/UK and US 700 in India for publications with similar print-runs.

Comment/Response: This sure is a major concern, when your focus is on profitability of the publication. However, if the advt page rates are compared with the cost of operations, one would realize that there is still some excitement in the Indian advt page rates. Average salaries for persons with comparable skill sets would be US $ 4000 in the USA/UK and US $ 500 in India.

The other major operational costs for comparison are office infrastructure, pre-press, printing, mailing and marketing/promotion costs, which again are significantly cheap in India. These differences almost offset the parity that exists in the cost of paper.

We strongly believe that the comparisons would be more realistic when a publication's profit margins are projected in percentage terms, rather than in absolute values.

Joint venture relationships: While international publishers want to invest in JVs; Indian publishers seek investment in existing companies.

Comment/Response: If we say both are right, how does make a deal happen?

It is very legitimate on the part of an international publisher to ask the Indian partner also to invest in a new JV, for two primary reasons - he wants the Indian partner to share the risk of a new project, while also ensuring that he does not get burdened with the liabilities of an existing operation.

A typical Indian publisher is financially not strong enough and does not have huge cash reserves to invest in a new company. So, he expects investments to come into the existing company. He also wants to play the "company valuation" card to derive maximum possible gain.

The above situation is very common in almost all deals that are being discussed within the country. There is no off-the-shelf solution. One possible way out (like the JV between Times of India-BBC Magazines) is that the Indian company's assets are transferred to the JV as its part of the investment in the JV.

A thorough due diligence on company, stretching upto its advertisers, subscribers and subscription/distribution agents will be a must too.

Circulation/Readership claims of magazines: Except for a very few magazines, almost all are un-audited.

Comment/Response: Absence of audits of circulation or readership figures suits not only the publisher, but an advertising agency as well as an advertiser. An example is of two publications, with actual print-runs of 1,000 and 5,000 copies and published advt page rate of Rs 10,000 and Rs 25,000 respectively. Both publications claim circulation of 10,000. Publication A discounts its advt page rate and sells at 6,000. Advertising agencies and advertisers capitalize on absence of audit figures, by pushing publication B to sell advt pages for Rs 8-10,000.

A larger effort at educating (publishers of publications like market-leader B), advertising agencies and advertisers is required and will happen when more professionally managed publishing companies enter the Indian marketplace.

BPA Worldwide has plans for and a representative in India. Their major presence here along with a few other international publishers can bring about a change.

Distribution: There are huge gaps/uncertainties in the Indian distribution system.

Comment/Response: For publications that depend on the Indian Posts' subsidized distribution system, it sure is a nightmare.

However, Indian now have a very well spread-out and very well organized courier system in place. They offer bulk contract rates, which are significantly good, though if not as attractive as the subsidized rates of Indian Posts.

If there are other issues that you would like us to address, please write to Bhupesh Trivedi at publisher@chronosphere.biz