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: channel concerned and conserved vital distribution cash that would have otherwise been necessary if it had chosen to be on cable networks. A tiered market gives these kind of solutions to niche businesses spurring market experimentation by both small and large players.

A tiered offering, content specialisation and growing distribution options produce what’s known as the ‘long tail’ phenomenon. The ‘long tail’ occurs when distribution platforms become very large, helping the smaller products to collectively gain market share rivaling that of leaders.

The TV business has been growing a long tail as niche content offerings are getting acceptance in small pockets. This has happened in news, sports and kids’ channels. The good news: each of the niche segments has shown good viewership. If the current trend continues and if distribution platforms get more addressable, one can imagine channels aimed at extremely niche communities.

* Segmented market

The specialisation in this industry is already segmenting the market. Groups of consumers who are watching specialist programming are extending the long tail of content. Specialist content has an impact on TV programmers and the TV production houses as resistance to experimentation could lead to certain death or marginalisation. When viewers become increasingly discerning, the quality, speed, variation and surprise elements have to be constantly improved. Clearly, 2008 is going to see a tremendous re-focus on content basics and quality.

There are also some concerns and challenges facing the TV industry.

* Nearly half the country does not have access to TV

While the southern states are clearly well penetrated even in rural areas, the same cannot be said for the rest of the country. This is a crucial challenge for the TV sector. It’s no laughing matter that roughly a third of the 30 million homes in Uttar Pradesh (UP) have TV sets. Worse is the UP cable number that stands at one-tenth (3 million of 30 million homes).

Currently, the TV media sector does not try to directly influence the penetration of TV sets which is at an abysmal 55%. If that does not change, the pie is not going to grow as fast as it’s getting sliced.

* News channels are straying into reality and entertainment