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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"Ours is the territory of music, which young Indians love and I think [V] is in the territory of international music which is something which young Indians certainly do not love." 1
- Sunil Lulla (Lulla), Former General Manager, MTV, in 1997.
"MTV has mimicked what we were doing in localization."
- Steve Smith, Asia Managing Director, Channel V in 1999.
A 'Musical' Fight
In April 1998, the Indian satellite television (TV) market witnessed two leading music channels, Channel [V] and Music Television (MTV) fighting a bitter battle in the media. Channel [V] accused archrival MTV of playing foul, when the latter telecast a music video 'Dooba Dooba,'
by the music group Silk Route.
Channel [V] alleged that it had an exclusive contract with the music company
BMG-Crescendo, which had released Silk Route's album 'Boondein' under its label.
According to the contract, the video was to be premiered on Channel [V] in the
evening and other music channels were to telecast the same after 9 p.m. However,
Channel [V] officials were taken aback when they saw the video being aired on
MTV at around 4 p.m. in the evening. Commenting on the issue, Suresh Thomas,
head of BMG-Crescendo said, "It was an unauthorized broadcast. Our instructions
to MTV were specific."However, MTV sources claimed that it was unintentional
and they knew nothing about the contract between BMG and Channel [V]. Channel
[V] officials were not convinced with the clarifications given by MTV.
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This was not the first time the two channels were at loggerheads. Earlier in November 1997, Channel [V] had alleged sabotage by MTV when viewers in Mumbai were unable to watch one of Channel [V]'s much-hyped and popular programs, Channel [V] Music Awards. Refuting the allegations of sabotage, MTV stated that Channel [V] was facing problems on the distribution front and hence, could not broadcast the program as planned.
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The 'Dooba Dooba' controversy did not come as a major surprise to industry observers who were used to the Coca-Cola/Pepsi sort of rivalry between the two channels. However, it was increasingly being felt that instead of wasting their energies on lashing at each other, both the channels would do well if they concentrated on their programming mix to attract viewers. This was all the more important since most of the programs on both the channels seemed to be similar in nature and there were no major differentiating factors. However, many viewers felt that there was a remarkable difference in the presentation styles of both the channels. MTV with its youth appealing presentation and video jockeys (VJs) was able to score over Channel [V] and was the number one music channel in terms of television rating points (TRPs) and advertisement revenue. |
The MTV - Channel [V] Rivalry in India
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