The MTV - Channel [V] Rivalry in India


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Case Details:

Case Code : BSTR038
Case Length : 15 Pages
Period : 1991 - 2002
Organization : Channel [V], Music Television (MTV)
Pub Date : 2002
Teaching Note :Not Available
Countries : India
Industry : Media & Entertainment

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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EXCERPTS Contd...

The Bout - Round III, Channel [V] Gets Defensive

The first thing that struck Channel [V] was that it had lost its focus and failed to understand the pulse of the Indian music market in terms of the programing mix - something MTV cashed in on well. However, channel could not be solely held responsible for it. There were certain problems inherent in the organizational structure. The channel had a centralized structure, wherein almost all the programing decisions were made at the headquarters in Hong Kong. As a result, the channel found it difficult to track the latest popular songs and modify its programing mix accordingly...

The Bout - Round IV, Channel [V] Gets Defensive, Yet Again

Industry observers felt that Channel [V]'s strong image as a music channel had become so popular that it acted as a barrier while projecting its new image as a channel for youth. According to an analyst, "The youth channel concept was difficult to implement as Channel [V] had already been looked upon as a music channel. To change that perception by offering non-music programs was a big task." A news report mentioned, "When Channel [V] turned 'youthful' in August 1999, the concept was totally new. There was no benchmark on which the channel could judge its programs." Moreover, most of its programs appealed only to one section of the audience at a time, whereas MTV programs were able to attract audiences across all segments. Virtual [V] was based on the Internet was meant for beginners, could attract audience, with internet connections only...

The Bout: Round V, Channel [V] Goes 'Back To Basics'

The 'Back to Basics' strategy was initiated by the Star TV network which had a majority stake in Channel [V]. According to this strategy, the channel decided to take off all non-music programs off the air, as producing them was very costly compared to the music-based programs. Moreover, advertising time on Channel [V] was sold as a package along with other Star TV channels at a discount. For instance, an advertiser advertising on channel(s) under the Star TV network was offered spots on Channel [V] at concessional rates. As Star's channels such as Star Plus and Star Movies were very popular, Channel [V] hoped to cash in on their popularity...

The Bout - Round VI, Back To Square One

While Channel [V] was successful in regaining its viewership and popularity with its Popstars show, MTV was also making efforts to retain its position. It launched new programs such as 'MTV Headstart' and 'Love Ke Liye Kuch Bhi Karega,' (Will do anything for love). While MTV Headstart depicted lives of young successful people from various fields - sports, music, authors and artists, the latter featured couples in love willing to do things to impress one another. The popular series, 'MTV Fully Faltoo' was modified and now featured songs and spoofs on Hindi movies. MTV also launched Mots MTV Loveline Twin card in association with BPL Mobile targeting youth as part of its merchandising activities for promoting its BPL Loveline program. Taking a cue from the success of [V] Popstars, MTV launched a 'VJ Hunt' in association with the leading toothpaste brand, Colgate Fresh Energy Gel...

Exhibits

Exhibit I: Mtv's Programs (In December 2002)
Exhibit II: TRPs of Music Channels (March - November 2002)

 

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