We were wondering whether we should avoid putting him in a spot by asking this question, but then it’s on issues like these that the perspectives from our Wizard with Words are superlative. Pure Gold. So, let’s hear it from Dr Bhaskar Das in the August 30 edition of Das ka Dum. Read on…
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Q. Your sentiments on Adani acquiring stake in NDTV? Will it be good for the network or media in general?
A. I don’t want to comment on the ongoing skirmishes that are unfolding in the case of the Adani group buying stake (takeover?) in NDTV. In the corporate world, this is a normal affair. Not many eyebrows are raised, in general. But when it comes to media, there is always speculation about the probable infringement of interest between the Church and the State.
In India, there are 400+ news channels in india and the actual business model determines whether a channel can be managed on a no-loss basis. Since the subscription model of news content is essentially free in India, the intensity of rivalry was dependent on acceptable industry currency for inclusion in any media consideration set. So the past focus (may be in the 1990s) was on differentiated content , including quality content and meaningful debate. With the onset of intense rivalry amongst channels, the priorities changed but revenue for all the channels were under pressure due to a lot of parity channels. Advertisers and advertising agencies had a field day in the space of intense negotiation. And that slowly started creating pressure on maintaining profitability.
I am looking at the business side of a channel’s management. Can’t comment on dwindling standards of the content, if at all as this outside the ambit of my competence. Whenever a business can’t operate with surplus, there would always be a vulnerability of a takeover bid. All news channels may not have deep pockets to stave off any takeover bid. It’s a normal business practice.
The combat is still on and the jury is out who would win in this tussle. So it’s premature to comment. That over-dependence on one source of top line is always fraught with volatilities. Here value judgment is inappropriate and let’s wait for how the story develops. Is it time to recalibrate the way we run our news channels as a business proposition? Surely worth an introspection as an industry. Business can’t be managed with emotions. It has to have a sound business logic of managing resource optimally for the society at large.