Turner-Miditech's Planned Launch of 'Real' Channel in India:Will it Succeed?

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"The category has been growing at a steady pace…and it is sizeable for multiple players to be in it. But it’s also a high-risk, high-gain category… You need deep pockets to survive."¹

- Keertan Adhyanthaya, Executive Vice President, STAR Plus

“Real’s focus with the ‘Neo-Indians’ enables it to offer fresh choice to Indian viewers, with programming which is a dynamic blend of reality and fiction. It’s clean, vibrant packaging, and uncluttered presentation is a reflection of its international quality. Real’s circular green logo depicts friendliness and approachability. It’s the beginning of a new year and it will begin with India’s biggest reality show ever, only on Real.”²

– Sunil Lulla, Director, Real Global Broadcasting

“Our reason for expanding it now is the future. It is not about now and the difficult times the media and the economy and the world is facing. But, it’s more about a very bright future that we see in India.”³

– Steve Marcopoto, President of Turner Broadcasting System Asia Pacific

Turner-Miditech's Planned Launch of 'Real' Channel in India:Will it Succeed?

On January 21st 2009, Real Global Broadcasting (RGB), a 50:50 joint venture betweenAlva Brothers’Miditech and Turner International announced the launch of a new Hindi General Entertainment Channel (GEC) – Real. To be launched in March 2009, Real is positioned as a smart, fresh and distinctive entertainment channel targeting the ‘neo Indians’. While its distinct positioning coupled with Miditech’s media clout and Turner International’s global presence would help Real make a successful entry, analysts and industry experts remain skeptical about the timing of the launch, given the economic recession and stagnantGEC viewership growth.Moreover, they also question the probability of its success as a subscription-based channel by staying away from saas-bahu serials and mythological shows that actually drive television rating points.Will it succeed in winning the Indian viewers who already got hooked to established channels? Indian Media and Entertainment: An Overview

Entertainment and Media (E&M) industry evolved to become one of the fastest growing sectors of the Indian economy.Aplethora of factors like sustainable increase in disposable income of the Indian population and the resultant rise in consumer spending, new delivery platforms, technological breakthroughs, favourable regulatory environment, low media penetration in lower socio-economic classes and lower ad spends provided immense opportunities not only for the industry to grow but also to generate new revenue flows.

The period 2000–2006, witnessed several developments in E&Mthat redefined the industry dynamics. For instance, traditionalmedia companies diversified into other industry segments – TV news channels set upGECs, TV broadcasters entered radio and film segments, film companies got into radio and print media companies stepped into radio and TV.

Such diversifications and growth through mergers and acquisitions continued even in 2007. Pyramid Saimira, a leading film company forayed into animation and gaming by acquiring Aurona Technologies, while NDTV group⁴ extended its television presence by launching three additional channels in the entertainment category. It includes NDTV Good Times (India’s first lifestyle channel in brand tie-up with Kingfisher brand of the UB group), Hindi GEC NDTV Imagine and a city-central channel, NDTV Metronation.

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1] Gupta Das Surajeet and Bansal Shuchi, "Getting Real";, http://www.business-standard.com/india/news/getting-real/00/24/347763/, February 3rd 2009
2] "Turner & Miditech’s new GEC Real to launch in March";, http://businessofcinema.com/news.php?newsid=11632, January 21st 2009
3] "Unfazed by slowdown, new TV channel Real launches in March";, http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=381803, January 24th 2009
4] New Delhi Television Limited is a private television production house founded in 1988 by a journalist, Prannoy Roy and operates a variety of channels including general and business news, Hindi GEC, Lifestyle channel, etc.