MxMIndia

Tag: viewership

  • Channels which operate without a robust management team, a unique market position, and a defined target audience, won’t be able to garner sustained and loyal viewership feels Ashish Pherwani

    Analysis: Ashish Pherwani on when it’s right for a channel to pull the plug

    By Ashish Pherwani

     

    Rule of three

    The media business is largely governed by the ‘rule of three’ i.e. companies which are the top three or four players in a genre, or geography, tend to be profitable, while the rest tend to make losses in the long run.

     

    Accordingly, when a TV channel is unable to make it to the top of its segment for a long period of time, chances are it would have been hemorrhaging money for its owners, and that situation cannot last indefinitely.  Eventually, investors will pull the plug.

     

    Expensive programs as drivers

    TV channels which garner a majority of their viewership from reality TV shows and expensive films, and not from lower cost fiction programs, are also susceptible to being shut down in the medium to long term.

     

    Most large channels do not recover their direct variable reality content production and distribution costs through advertisements alone, but use such expensive programs as drivers to build channel loyalty and viewership for lower-cost fiction programs.  If this strategy does not work, and fiction shows continue to under-perform on a TV channel, the chances of broadcasters continuing the channel are remote even in the medium term.

     

    ‘Overhauls’ and ‘Makeovers’

    Over the last decade or so, most unsuccessful channels which have tried ‘overhauls’ and ‘makeovers’ that have failed to achieve their objectives within six to eight months, have eventually shut down their operations.  There are a few exceptions where channels are politically motivated, treated as marketing tools for large business houses, or those who believe they could build channel valuations for a profitable exit, but such companies are few and far between, and the recession of 2009 and the slowdown in 2011-12 have weeded out most of these.

     

    Foreign investors prefer less risky ventures

    In the case of foreign broadcasters enteringIndia, those with deep pockets and who believe in theIndiastory, which I certainly believe in, too, tend to stay invested inIndia.  But some foreign broadcasters prefer a less risky approach than creation of high-cost content.

     

    They prefer to exploit their existing global content library inIndia. Accordingly, more cautious and risk-averse foreign investors wouldn’t continue to fund under-performing TV channels indefinitely, and would rather take the less risky route.

     

    Viewership, the only asset

    To conclude, the only asset a channel has is viewership.  Channels which operate without a robust management team, a unique market position, and a defined target audience, won’t be able to garner sustained and loyal viewership.

     

    If channel management is able to make these three aspects fit seamlessly together, chances are the channel will succeed as a business, else, it would make business sense to pull the plug!

     

    Ashish Pherwani is Associate Director, Advisory Services, Ernst & Young Private Limited

     

  • The always greedy BCCI is determined to kill the goose that lays the golden eggs. And I think marketers must crack the whip and ensure this does not happen.

    Hard Knocks: BCCI needs a third umpire

    By Anil Thakraney

     

    The first day’s play at Calcutta in the current India/West Indies series produced a real shocker. Near-empty stands at the Eden Gardens. Who would have imagined such a day would come in that cricket-crazy city? And this, despite a player like Sachin Tendulkar being in the house, and perched on the verge of a historic milestone of his 100th 100. Now, I realize cricket in India has become a television sport and that’s where all the money comes from. Still, it must be said there is no fun watching a match on TV with no cheering, booing, placards-carrying crowds in the backdrop. That’s the essential part of sports excitement. Already, the TRPs of test match cricket have taken a beaten in recent times, and with no crowds in the stadia, I am afraid more and more fans will give even television viewing a miss. And that would be an alarming situation for advertisers.

    There are many reasons why test cricket is dying a slow death in this nation. The obvious one is the BCCI’s greed, which has resulted in excessive cricket tournaments, leading to crowd fatigue. Then there’s the issue of New India’s impatience with a five-day game. These problems I would leave for the cricket pundits to tackle. However, I must say sponsors and advertisers must come together and set out a few guidelines for the BCCI if they don’t wish that the game, which is always a good marketing vehicle, dies out. Because today it’s test cricket, tomorrow it could be the one-day game. And if the BCCI chaps don’t listen, sponsorships should be cancelled.

    One thing the BCCI must be compelled to do is to ensure that the various cricket associations sell stadia tickets for a low price. Perhaps Rs 20 a ticket. And all minors and school kids should be allowed in for free. Also, facilities in the stadia should be improved so that going for a cricket match is a joy and not a pain in the you-know-where, which it currently is. The very very, very cash-rich BCCI can easily re-imburse the associations for their losses/expenses. This will make sure the stands are reasonably packed at any point of time. And we don’t have a situation where Sachin scores a ton and there’s no-one around to cheer him.

    Bottom line: The always greedy BCCI is determined to kill the goose that lays the golden eggs. And I think marketers must crack the whip and ensure this does not happen. It’s no longer enough being passive spectators in the game. It’s time to play the role of a strict referee.

     

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    PS: Waiting for a cutting-edge column from Ms Shobhaa De on the Kingfisher mess. Mallya is the lady’s BFF, so let’s see if she gets after him like she does with all else. Will she risk missing out on a yacht invite? Take a guess!