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Rediff.com  » Business » TV channels' latest mantra

TV channels' latest mantra

By Prakriti Prasad
October 20, 2005 13:19 IST
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Question: How do you get more viewers -- and, more importantly, higher ad revenues -- if you're a niche television channel? Answer: localise, localise, localise.

That appears to be the latest mantra for a slew of broadcasters from AXN and BBC World to National Geographic and Travel & Living as they scramble for a bigger slice of India's estimated Rs 4,500 crore (Rs 45 billion) television advertising pie.

"There is certainly a larger advertising outlay on Indian content than on foreign content," says Sundar Raman, general manager at the media buying company, Mindshare.

Take BBC World. The British news and documentary broadcaster, which aired Bollywood Inc. In July as part of its India Business Report series produced by Mumbai-based UTV, kicked off an India Week from October 15 featuring live reports, debates and interviews in its regular programmes like HARDtalk, Click Online, Fasttrack, and Talking Point.

Explains Narendhra Morar, commissioning editor at BBC World: "India is one of the key markets for BBC World and our commitment is reinforced by our programming from the region."

It's no surprise that BBC World's regional focus is shifting to India. News has emerged one of the country's fastest growing television niches, garnering Rs 200 crore (Rs 2 billion) in ad revenues from virtually nothing ten years ago.

"India clearly holds focus on the world stage and it's our endeavour to bring the world to India and India to the world," says Richard Porter, head of news at BBC World.

The other star performer: children's channels, which earned Rs 140 crore (Rs 1.4 billion). Currently, there are around 10 children's channels broadcasting across India, including international majors Disney, Cartoon Network, and Nickelodeon.

Each of these channels already broadcasts in Hindi. Now, they are increasingly setting aside slots for local programming, which, says Raman "helps increase advertising yield".

Advertisers love local programming for several reasons. Apart from the fact that it attracts more eyeballs by appealing to viewers in mini-metros and smaller cities, local content provides greater opportunities for sponsorships.

A good example is Hero Honda's association with Mission Udaan, a spectacular series that goes behind the scenes at the Indian Air Force, which is being launched on National Geographic Channel this month. "Local programming makes brand integration easier. That's worth much more than just plain ads," says a Delhi-based media buyer and a localisation enthusiast.

NatGeo has been localising content aggressively in recent months. Mission Udaan follows the success of its 12-part series It Happens Only In India, which wrapped up on September 23 and received widespread appreciation from viewers as well as advertisers.

According to Nikhil Mirchandani, head of sales & marketing at National Geographic, India is a priority market for both NatGeo and its sister History Channel. "We have witnessed regular peaks in advertising revenues when we have leveraged Indian content in our programming. The local content has a positive impact because of its strong connect with local audiences and hence its appeal to many categories of advertisers," he says.

Interestingly, while NatGeo has only around 15 per cent of localised programming, India-centric shows earn a disproportionately high 25 per cent of the channel's ad revenues.

Discovery Channel is not far behind. It has been airing a one-hour Discover India series to satisfy the growing demand for India-specific content. Discover India highlights not just the history and culture of South Asia, but showcases aspects of modern India and the achievements of Indians who have gained global recognition.

Says Raja Balasubramanian, brand director (marketing) at Discovery Networks India: "Through the Discover India series, the channel has been able to provide the Indian viewer a glimpse of India from a global perspective."

Among the beneficiaries of the swelling demand for local programming are domestic television software producers, who make an estimated Rs 280 crore a year supplying shows to various channels, according to a Confederation of Indian Industry-KPMG report on the entertainment sector.

While a bulk of that may come from prime-time soap operas on the mainstream channels, the report clearly states that among the factors contributing to the growth of the television software segment is "enhanced consumer interest in niche markets".

That's borne out by the growing amount of work being farmed out by niche channels to independent producers such as UTV, AIM TV, Moving Picture Company (India), Pulse Media, Ekka films and Miditech. "India has a bunch of supremely talented and young filmmakers who are capable of producing international quality content. We are proud to commission them shows that play across 159 countries and are translated into 27 languages," says National Geographic's programme head, Dilshad Master.

Miditech, for instance, has a list of award winning programmes like Living On The Edge, Operation Hot Pursuit, Skeleton Lake, Lions of Gir and The Indian Witch-Hunt.

Miditech's projects have included travel shows on locations like the Seychelles and the Maldives, apart from a film on earthquakes, which required shooting in Australia, Indonesia and other earthquake-prone territories around the world.

"When we make a film we've always got to think whether it can work in France or the UK as well," says Miditech president Niret Alva.

Veteran television producer UTV also has an impressive client list that includes international broadcasters such as CNN, AXN, Travel UK, BBC World and NatGeo. UTV's Back to the Floor, Business Bites and Bollywood Inc were aired by BBC World and a one-hour documentary Stuntmen of Bollywood was part of NatGeo's It Happens Only In India series.

Says Monisha Singh, television head at UTV: "It's an interesting phase in the Indian television industry because it's not just the Indian viewer one is catering to but to a worldwide audience with varied interests. Besides, the world is getting to see India through Indian eyes and that is a great challenge and very satisying as well."

It's remunerative, too. International channels pay typically anywhere between Rs 50 lakh (Rs 5 million) and Rs 2 crore (Rs 20 million) for programmes by Indian producers, although wildlife shows can fetch up to $1 million (around Rs 4.6 crore).

"We don't scrimp on budgets. If you pay peanuts you get monkeys. We pay what is necessary to get international quality stuff," says Master. Nat Geo pays around Rs 65 lakh (Rs 6.5 million) for an hour-long programme, though figures vary depending on the expenses involved.

Clearly, it's a profitable time for Indian television producers thanks to localisation. And it's a win-win situation for advertisers and viewers alike.

As Master sums up: "My plan is to have as much India programming as I can. After all, the idea is to show what viewers and advertisers want." By doing so, the niche channels are clearly muscling their way into the prime band.

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Prakriti Prasad
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