the sun sets on 2005, Tam Media CEO L V Krishan gives Indiantelevision.com
his take on the fast changing media scenario in India, what
with the impending launch of a couple of DTH services, IPTV,
broadband TV and the boom in the telecom sector with the
introduction of 3G technologies in the near future. Read
are seeing trends of 2002-03 being repeated today on account
of a booming economy. Incomes are going up, living standards
too, and this is reflected in the B&W to CTV ratio:
where earlier, one out of every two people used to own CTV
sets, today; two out of three own one, that is, 69 per cent
of homes. This is leading to changes in viewing patterns,
and to fragmentation.
almost 75 per cent of C&S homes own a remote control,
which allows them to zap faster, increasing their viewing
options. However, the quantum of viewing is not rising and
the pie is being broken down at a faster pace than earlier.
the average family size has declined between 2002 and 2005.
This means lesser number of people are watching TV. The
range of content today has changed completely and allows
the youth, the chief wage earner, elderly members and the
housewives to select what each one wants to see. Thus a
timetable for TV has started setting in. This timetable
is also influencing them to know about new programming,
which is sampled during commercial breaks, as that is when
all the surfing happens. That's the reason why we are seeing
a dip in commercial breaks during primetime viewing, which
is increasing annually. Families are on the lookout for
watching something that everyone has a common affiliation
implications of this are basically on the kind of marketing
and promos that channels are doing. Promos are getting more
aggressive and dynamic. They feature newer forms of promo
content, not just in terms of the 30 second capsule
but in terms of alternate displays, pop ups coming in on
regular programmes etc. Cross channel promos are also growing
and more than 50 per cent of commercial time is being used
on show promotions.
you look at four week launch GRPs for a TV programme and
compare that to a four week launch GRPs for any brand -
be it, FMCG, telecom or auto major - on an average the GRP
levels for a programme promo are at least three to five
times higher than the launch GRPs of a brand.
there is a huge revenue loss opportunity for broadcasters
but they are ready to sacrifice that to get eyeballs for
their shows. Broadcasters are now trying to optimise promos
through better rationalisation of spots to get unique eyeballs
in terms of effective reach and frequency as well in terms
of GRP levels and day parts.
TV set homes, especially in Northen markets like Delhi,
Punjab and Rajasthan, are rising, leading to a further division
of family viewing. When you look at data in multiple TV
homes, you get phenomenally stark new audiences, which are
engulfing channels that are completely genre based in nature:
5:30 am: spiritual / religious channels are watched by the
elderly members of the family. The evening band is watched
by kids while late night viewing is reserved for adults.
can happen even in a non-multiple TV set home, but the fact
is that in the multiple TV sets homes intensive viewing
is happening parallely.
2006, the bet is going to be on spiritual and religious
channels. We already have nine spiritual channels, which
have an over 1.5 per cent market share, accounted for mainly
by viewers between 35 and 55 years.
while the news segment has been growing for the past three
years, 2005 was the year of kids' channels. Their
marketshare boomed 400 per cent from 1.5 per cent to 5 per
cent. In certain markets, they have crossed music channels.
The question for music channels is: will they be able to
draw revenues only from an addressable platform?
channels can learn from news providers. In 2005, local
and regional icons and events emerged as viewership drivers
on news channels. During the Mumbai deluge coverage, all
eyes in Mumbai hooked onto news channels but the rest of
the country did not. Ditto with the Delhi blasts where news
channels viewership shot up in the capital. Also, when Sania
Mirza played, Hyderabad was rocking in viewership.
if channels can tap local icons and make them look big,
they are going to get viewership surges. This is what music
channels have not exploited as none of them has gone out
and searched for local talent.
sure, localisation is going to drive in revenues
too. Print and radio's Top 10 advertisers feature local
advertisers like independent retailers, real estate, educational
institutions, coaching classes etc. So even from the advertising
perspective, it makes sense for channels to localise.
can allow that localisation to some extent. We are set
for a strong digitalisation of the upper end segment. My
worries here are on two issues: one is how will growth take
place and the other relates to infrastructure, which is
not the focus for the industry at all.
there are 110 million Indian homes, which don't have a TV
set, it is not because they can't afford one but because
they know that it is worthless with the power fluctuations
and load shedding. Broadcasters should set aside 10 per
cent or Rs 5 billion of all annual revenues of Rs 50 billion
for developmental purposes and give it to government to
create infrastructure, especially, power supply.
power can come in along with roads and transportation, the
economy which is growing at 8 per cent can hit double digit
growth. That, will lift the broadcasting industry by 100
per cent more than what it is growing at today.
what broadcasters are not realising, is that digitisation
is fragmenting existing audiences. By digitising, you
are delivering 200 channels instead of 10. Today, 85 per
cent of viewing is on 27 odd channels and if you look at
advertising, 90 per cent of it is also on those channels.
You are further fragmenting this with broadband, IPTV and
DTH. Hence consumption time on each channel is going to
fall and the cost per contact is going to go up. Advertisers
don't have the wherewithal to actually kick in that extra
money. It's new advertisers who are bringing in the boom
and not existing ones. And will that many new advertisers
only way forward is for advertisers to tailor make new products,
which are not mass, but targeted at niche segments. The
other possibility is that broadcasters themselves become
brand marketers because they anyway understand consumers.
were testing how to measure the digital market with digital
peoplemeters. While we could still measure DTH and broadband
from day one, the real challenge is going to be in the
second phase of digitisation where Trai and the government
will open up unified licensing and allows licenses to be
purchased for 3G in the telecom sector.
private telcos will start delivering video sometime in future
leading for interesting times. India has a very large youth
and kids segment who are comfortable with gizmos. We are
going to see adoption rates for these technologies with
the right kind of content, faster than those we've seen
for the remote control, cable TV or DTH.
aspect is the jump in radio. The only drawback is
that it has still not innovated the way TV has. The bulk
focus is still on music. For example, Star One's The
Great Indian Laughter Challenge can be a fantastic property
when retro-fitted to radio. Although radio ad revenues have
grown 45 per cent, the real growth has still not come.
here for Yearender 2005 Archives