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

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

 

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However, given the economic downturn and declining market growth for Hindi GECs, many industry experts and media analysts remain skeptical about Real’s success. In fact, they question whether it is the right time to launch another Hindi GEC, fourth in succession after 9x, NDTV Imagine and Colors. Lulla elicits a firm reply saying that it is 100% right time because entertainment does best in a recession market. Not deterred by the economic downturn, even Turner is all set to launch a new English entertainment channel in India in association with Warner Brothers that would broadcast Hollywood movies and soaps. Shashi Sinha, CEO, Lodestar Universal29, asserts, “I think from a distribution standpoint it may be a good time because this is when all the contracts expire so for the channel to be placed maybe that’s a good proposition. From the content point of view, anytime is a good time because when there is a bit of a slowdown you get better quality content. Advertising, definitely there’s pressure as certain categories have been affected.”30

But analysts still remain cynical about the success of its programming content devoid of saas-bahu serials and mythology that actually drive Television Rating Points (TRPs). CEO of a competing GEC says, “Soaps and saas-bahu serials are the daal and roti of Hindi GECs. You can of course always package it differently, but you cannot ignore them.”³¹

Moreover, despite its distinct positioning, Real would face the challenge of getting the core audience between 25– 40 years who already got accustomed to watching other established channels. Further, all GECs ultimately end up wooing the same target group – women even though they were initially positioned with different target groups (9x – women between 25–35 years, STAR One – younger audience, STAR Plus – Married housewives, Zee – slightly older group, NDTV Imagine – family audience, etc).

Additionally, niche does not work in a Hindi GEC. The channel may be positioned as an upscale one; advertisers do not buy the positioning, but the GRPs. For ads aimed at specific target groups, advertisers may as well prefer channels of unique content instead of GECs.Marketing director of a telecom service provider asserts, “As an advertiser, we are not looking at what new genre you are creating in the Hindi GEC space. We don’t look for differentiation.”³² Further, with very few two-television homes in India, experts do not expect younger audience to hold the remote during prime time.

Analysts also estimate that growth in the Hindi GEC viewership would not be more than 9%–10%and with increase in the number of players, GRPs only get redistributed. While growth would predominantly depend on content and marketing,GECs consistently contend with rising cost pressures like programming costs and carriage fee.With increased fragmentation, even the sponsors have reduced rates on high budget programmes, since the amount gets distributed among many such programmes unlike earlier single big shows like Kaun Banega Crorepati. In fact, broadcasters are even offering 10%–30% discount to companies that buy bulk time.

While Lulla understands the Indian eye balls and the advertising game, launching a new GEC in an existing cluttered market as a paid or subscription-based channel also raises questions. In addition, competition would get tougher as channels like NDTV Imagine announced the proposed launch of a new programme, Ghar Ki Baat Hai, of Bollywood’s Shah Rukh Khan production – Red Chillies Idiot Box. Aiming to bring ‘cinematic value’ on the small screen, Shah Rukh Khan, asserts, “There is no specific cache of programmes which we are planning on television. I have been a film producer for the last eight to nine years and have experience of acting for the last 20 years. I think I can bring a difference to television in terms of presentation of content. I will try to bring cinematic value to television.” He adds, “Light content was commercially viable. I am strangely connected with television. I made my debut in acting with television working with Saeed Mirza, Kundan Shah and Aziz Mirza and now Aziz, NDTV Imagine CEO Sameer Nair have persuaded me to be back on television.”³³

Amid this scenario, can Real succeed in breaking the competitive clutter in the Hindi GEC genre? If so, how? Will the Indian viewers who are already accustomed to watching existing channels try out Real as a paid channel? Will it succeed by doing away with saas-bahu serials and Hindu mythological shows?

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29] A global consultancy that offers solutions regarding marketing, customer maximisation, sales, teaming and other mission critical activities and are experts in communication such as investor relations, raising venture money, executive coaching and presentation skills.
30] “Unfazed by slowdown, new TV channel Real launches in March”, op.cit.
31] “Getting Real”, op.cit.
32] “Getting Real”, op.cit.
33] “SRK plans to bring cinematic value on television”, http://www.business-standard.com/india/news/srk-plans-to-bring-cinematic-valuetelevision/16/52/53752/on, January 28th 2009