- Too much free equity flowing in during the boom, made it remunerative(cost wise) for steady, conservative business models. When actors, directors, staff etc wages go up 2-3 times due to new entrants without corresponding revenue growth, then incumbents have problems
- So, the exit of these new players allows strong business models to come back
In retrospect, I could notice that industry leaders like SBI, HDFC, ICICI, L&T, Airtel etc have outperformed their peers(stock price returns wise). So the panicked reaction of selling off industry stocks as a whole, may be bad. If you are an investor in an industry facing a downturn(say real estate at present), shifting investments to the industry leader may be a good bet. In the Media context, firms like Onmobile may make sense in this current period when telecom/VAS stocks are being beaten down, but thats a topic for another post.