For the media and marketing industry in India, 2010 has been a good year with most companies seeing a revival in fortunes. After a challenging 2009, the media and marketing industry had hoped that 2010 would be different with customers returning to the market. The year started off with a lot of expectations. This was the year when the industry was expected to see a upturn capitalising on the overall revival in the economy. Brands were expected to raise their marketing budgets, consumers were expeced to spend more, and media companies were supposed to kick off their expansion plans. This was also a year when players ventured off the well-trodden path and looked at new ways of engaging the consumer.
Quite a few path-breaking trends could be seen in the television industry this year. The game changing strategy of airing serials revolving around rural women that started in 2008 when general entertainment channel Colors launched Balika Vadhu turned into a deluge with all the top GECs churning out serials set in rural India. Advertisers have also been quick to support the move, seeing an opportunity to reach out to audiences in tier 2 and tier 3 towns who have been keen followers of these daily serials. At the same time, this year saw reality shows become a successful format on the small screen with consistent viewership ratings. The concept of having seasons for reality shows has clicked with both advertisers and audiences with the second half of 2010 buzzing as not one, but four star-studded reality shows were launched. Amitabh Bachchan stole the show for Sony as Kaun Banega Crorepati 4 recorded an opening TVR of 6.21 ? the biggest opening amongst all the reality shows.
More movies were also shown this year on television, that too soon after the theatrical release. It was the year of exclusive deals for broadcasters and production houses as opposed to syndicated deals. Not only did 3 Idiots enable Sony to sell its ad slots at a premium, the second screening of the movie pushed the GRPs of the channel. Another trend saw satellite television telecast rights deals happening before the theatrical release of the films.
Controversy sells, and how! In 2010, the approach adopted for movie marketing was unprecedented. Dabangg?s hit song Munni Badnaam Hui which sang paens to Zandu Balm saw Emami, the Kolkata-based maker of the pain relief balm sue the film-makers on the ground of copyright violation. While the controversy created a buzz around the film before its release, Zandu Balm managed to attract the attention of young consumers. That made Emami switch gears and go for an out-of-court settlement winning the right to use the song in its ad campaign. Again, the much-publicised fight between author Chetan Bhagat and film-maker Vidhu Vinod Chopra at the fag end of 2009 for not giving the former credit for the story of 3 Idiots worked to the benefit of both sides. While the buzz got the cash registers ringing at the boz office, Bhagat?s book Five Point Someone, on which the movie was based, saw a 15-20% jump in sales in the wake of the controversy.
Marketing this year was not just about the time-tested five Ps, but also on how marketers tackled each situation ? good or bad ? and turned these in their favour. One example of this is the pesky telemarketer who used the ubiquitous SMS (short messaging service) service on the mobile phone to reach out to millions of unknown customers. The current size of the spam SMS market is pegged at 12 billion SMSes annually. No matter how much we hate spam messages, they are the cheapest way available to small advertisers to reach maximum number of people. At the same time, advanced or lesser intrusive messaging solutions like SMS 2.0 have done well.
In a year ridden by scams, Twitter was the unsung hero. Starting with the kick-back allegations surrounding the Indian Premier League (IPL) which saw the ignomius exit of Lalit Modi, to the Niira Radia tapes, it was Twitter which played a decisive role. So much so, that it is increasingly being termed as a ?watchdog? for Indian media. The rise of Twitter this year demonstrates the power that social media is gradually gaining as a source of dissemination of news and information, and how it can break or build news.
Radio, which was heralded as the next big story last year, finally could spy a change in its fortunes in 2010. The Copyright Board?s order which came in the middle of the year stated that radio companies would now pay 2% of the net advertisement earnings of each FM radio station as music royalty, from the current rate of around Rs 850 per hour of broadcast. This, along with the launch of phase three of award of radio licences, is expected to give a boost to radio revenues, say experts. While the ruling was music for radio stations, the music industry was left fuming. Music companies apprehend that the industry, already facing hardship due to music piracy, would be hit badly.
BrandWagon brings you the ten big ideas in the media and marketing industry that clicked this year. Hope you enjoy reading the edition.
* SMS Marketing
The pesky marketer gets bolder
So what if you cannot afford a state-of-the-art villa, you certainly deserve to get a text message on your mobile phone carrying information on the same. Welcome to the world of push SMSes (short messaging services). Though spam
SMSes are despised by irritated receivers and a few discerning advertisers it is here to stay for long before ? as a marketing official from an MNC puts it – dying a natural death.
According to industry estimates, in 2010, around 75% of urban mobile phone users received at least four marketing or promotional messages. The current size of the spam SMS market is pegged at 12 billion SMSes annually. Believe it or not, the average price per SMS is a mere 2 paise, making it a win-win situation for the advertiser. Popular with local retailers, this year saw small retailers such as salons and astrology consultation using the medium for advertising. Realty continues to be diehard users of the medium.
Obviously, here the objective was not to build a brand, but to acquire customers. Due to small investments, the advertiser is not bother about the spill over. The bigger brands continued to stay away from push SMSes as the nagging nature of such messages can turn off a customer and damage the brand?s image. Many industry insiders feel that in years to come, Telecom Regulatory Authority of India?s (TRAI) intervention will be decisive in shaping up the SMS market in India .
Also, the future belongs to mobile device or application based platforms like SMS 2.0, an enhancement to existing SMS features, directly borrowing ideas from PC based instant messaging platforms. The messaging application converges messaging, content and advertising. This year, brands from categories like FMCG, automobile and handsets were some of the major advertisers using this platform. According to Anuj Kumar, executive director, South Asia , Affle, spam SMSes are neither in the interest of users nor advertisers. ?There is no geographic or demographic profiling available. Advertising works well only when it is integrated with content, resulting in a rich and engaging experience,? he adds.
On the other hand, Vijay Shekhar Sharma, founder, One97 Communications, believes that ads on device based applications may not pick up fast in India because the country is a multiple smartphone market. ?Device applications will continue to be a niche option for advertisers,? he says.
India has over 600 million mobile phone users with the subscriber base growing at about 35%, which is the highest across the globe. Mobile advertising in India is expected to grow at 500% this year, from $4 million in 2009 to $20 million in 2010. Mobile advertisements will account for 40% of the overall mobile messaging marketing revenue by 2015.
* Controversy as a Marketing Tool
Khan, some idiots & an infamous Munni
Want to break all records for your forthcoming movie? Then create a controversy around it and sit back and watch your movie turn into a hit. Publicity always helped a movie do well at the box office, but this year, movie marketing became more than a few promos here and there.
It started with the credit controversy around 3 Idiots. Chetan Bhagat, the author of the book Five Point Someone on which the movie was based, was miffed with the film?s makers including director Rajkumar Hirani, producer Vidhu Vinod Chopra and actor Aamir Khan for not giving him credit for the story of the film. Interestingly, both the parties gave their side of the story to the press, generating buzz around the film.
While the buzz got the cash registers ringing at the box office, the book witnessed a 15-20% jump in sales across various book shops in the capital and across the metros.
Early this year, Bollywood actor Shah Rukh Khan and owner of Kolkata Knight Riders said that the IPL managers could have handled the controversy over franchisees not selecting Pakistani cricketers at the auction in a ?nicer manner?.
Shiv Sena activists were quick to respond, tearing down the posters of his latest film My Name is Khan, and if that was not all, threatening to stop the screening of the film.
But Shiv Sena?s move backfired with the film earning Rs 90.2 crore in the opening week despite the fact that some wary theatre owners did not screen the movie preferring to adopt a wait-and-watch policy. Veteran trade analyst Taran Adarsh feels that controversy of any degree cannot impact the performance of a film at the box office in the long run. ?These can create temporary buzz and attract some public attention, but eventually the content has to do the talking,? he says.
How can one talk of controversies and forget Munni, whose mention of Zandu Balm in the infamous song Munni Badnaam Hui in the movie Dabangg made Emami, the Kolkata-based maker of the pain relief ointment sue the film-makers for violation of copyright.
This song achieved what Emami has all along been trying to do with its Virender Sehwag-starrer Zandu Balm ad?reach out to a younger audience. The Dabangg controversy made Zandu Balm more popular amongst the youth with sales figures going up by significant numbers.
So, despite all the self-righteous complaints, recognising that the song had overnight made the brand a household name, the Rs 1,000-crore FMCG company finally reached an out-of-court settlement winning the right to use the song in its ad campaign.
Also, the brand roped in Malaika Arora Khan who essayed the role of Munni as its new brand ambassador.
While all these movies were even otherwise marketed well, it?s hard to ignore how a well-timed controversy can turn a film into the talk of the town. The bottom line is ? an assertive Khan, quarrelsome idiots and a compromising Munni ? all benifitted from the controversies this year.
* Twitter and Media
Tweeting into the day?s headlines
A news channel recently conducted a poll on whether social media such as Twitter have the potential to take over mainstream news media and about 87% of the viewers voted yes. This clearly demonstrates the power that social media is gradually gaining as a source of dissemination of news and information in the fastest possible way. In fact, it is increasingly being termed as a ?watchdog? for Indian media.
The most recent example of this is the controversy regarding the taped conversations of lobbyist Niira Radia which a majority of the news media preferred to ignore initially. The mainstream media was forced to take up the issue only after the humongous response the issue received on Twitter and some blogs. Fingers were being pointed at the media for ducking the issue, more tapes were being made available to the public, the political-lobbying-journalism nexus was being discussed comprehensively?all this in the ?open to all? world of social media.
It is not just the Radia controversy. The Commonwealth Games corruption allegations, the Adarsh Society scam and US President Barack Obama?s visit to India got more coverage on the social media than by the mainstream media. People posted information, views which led to discussions and debates in the social media circle. In many instances, news was picked up from the social media and then published in mainstream media like film actor and politician Shabana Azmi?s tweet about a dinner being hosted for Obama where some other celebrities were also invited.
This is how 2010 saw a new generation being created in India ? the generation of Tweeple (people who use Twitter). Apart from various top-notch journalists who joined Twitter, there was also a huge surge of celebrities climbing onto this real-time media platform. Celebrities have been using the platform to offer clarifications and break important news about themselves. Some celebs have also been utilizing the medium to raise questions about the various issues that have engulfed the country.
A few Twitteratis have also triggered controversies by some of their tweets which made it to the front pages of the newspapers. While member of Parliament Shashi Tharoor was reprimanded for calling economy class seats in airlines ?cattle class?, Lalit Modi lost his IPL post for his tweets regarding the ownership of the Kochi IPL team.
Now politicians are jumping onto the Twitter bandwagon as well. Recently, leader of the opposition Sushma Swaraj joined Twitter. Well, it is another thing that this also raised a controversy as Suhel Seth tweeted, ?Can someone like Sushma Swaraj be on Twitter because Twitter has IQ barriers??
We wonder if someone is busy typing the response.
* Seasonal Flavour of Reality Shows
An addiction called reality shows
Going by the consistent good performance of reality shows in 2010, it will not be incorrect to infer that the format has been established in India . Initially seen as providing a respite from the melodramatic daily soaps, today reality shows are seen as the best bet for reviving the ratings of a channel.
In May, three general entertainment channels?Zee TV, Colors and Star Plus?rolled out dance-based reality shows – Dance India Dance (DID) Li?l Masters, Chak Dhoom Dhoom and Zara Nach Ke Dikha, respectively. Of the three, it is Zee TV?s offering which grabbed the maximum number of eyeballs.
As per data from audience research firm TAM Media Research, DID Li?l Masters recorded an opening TVR (television viewership ratings) of 6.7. In the opening week, while Chak Dhoom Dhoom Chhote Dancers Badi Jung on Colors recorded a TVR of 4.39; Zara Nach Ke Dikha on STAR Plus recorded a TVR of 2.37.
October saw four general entertainment channels (GECs)?Sony, Colors, STAR Plus and Imagine TV?rolling out reality shows of various formats such as Kaun Banega Crorepati (KBC) Season 4, Bigg Boss Season 4, Master Chef and Rakhi ka Insaaf. Beating the opening TVRs of the previous seasons of Bigg Boss, in season 4, Salman Khan?s popularity helped Colors get an an opening TVR of 4.83. Amitabh Bachchan stole the show for Sony as KBC recorded an opening TVR of 6.21 ? the biggest opening amongst all the reality shows.
According to Anita Nayyar, CEO, Havas Media, the concept of having seasons for reality shows has clicked with both the audience as well as the advertisers. ?These shows have been delivering consistent numbers and offer great variety. The advertisers are not only going by the show ratings and the channel?s position but, they give equal importance to the host and the content,? she says.
The genesis of reality shows on the country?s small screen can be traced back to 1993 when Zee TV launched Antakshri followed by another music reality show Sa Re Ga Ma Pa two years later. The breakthrough happened with shows like Kaun Banega Crorepati and Indian Idol. The unprecedented success of these two shows acted as a gateway for many reality formats on the Indian television. However, not all the shows found success and many were rejected in spite of being hosted by celebrities.
Ajit Thankur, executive vice-president and business head, Sony, attributes the channel?s success this year to a mix of reality and daily soaps. ?Soon KBC will be replaced by Jhalak Dikhhla Jaa and we will bring a new season of Indian Idol next year,? he says.
Also, the industry is unanimous on the fact that for the next year, the GECs should focus on upping the fun quotient of such shows because viewers are more loyal to these as compared to reality shows which are more serious.
* Rise of Scions
Tomorrow?s stars shine today
Motto at work should not only be to listen to your head and heart but, most importantly to your ba@#s, says Sidhartha Mallya, and this perhaps says it all about the confidence of the next generation of business leaders from India. At Indian business houses, the next generation is all geared up to carry forward their family legacies. So whether it is the young scion of the UB Group who was inducted this year in the business, or Lara Balsara, daughter of Sam Balsara, the chairman and managing director of one of India?s foremost media and communications group Madison World, or Anirudh Dhoot, son of Videocon Group of Companies chairman Venugopal Dhoot, India?s next generation of business leaders is raring to go.
These are the children of liberalisation. They have top academic degrees from the best of academic institutions across the world; they have also had short stints abroad working with global companies and now, are learning the ropes at their family businesses as they follow in the footsteps of their predecessors. For Anjani Kasliwal, daughter of Nitin Kasliwal, who heads S Kumars Nationwide Ltd, it was her stint at the Munich headquarters of luxury brand Escada that gave her the much-needed advantage when she launched the family business?s luxury division.
The new crop of leaders, who grew up in post-reform India , is a compelling proof of the country?s growing confidence and ability as an emerging economic powerhouse. While some of them have already made a mark in their chosen line of work, with their new business ideas and innovations on management mantras, others are all set to rock the next decade.
These top guns realise that to make the made-in-India brand popular around the globe, a big marketing push is essential. They feel the right kind of advertising is a pre-requisite to strike a connect with the end consumer and thus be successful. Balsara, who has completed six years in the family firm, and is directly involved in scouting business opportunities and setting up new ventures, says business ultimately boils down to marketing.
?As we grow we are putting more emphasis on organisation development. We have launched an internal program called ?Reach for the Stars?. In the next few years, I would like Madison to provide an opportunity to young talent to pursue their entrepreneurial dreams with a bit of help in terms of infrastructure and resources and sound mature advice,? she says.
* Blockbusters on TV
Big effect on the small screen
Were you surprised when you saw an ad on Colors announcing the television premier of Dabangg (which released in movie theatres on September 11) on November 25? Don?t be! In fact, get ready to see more movies premiering on television within a few weeks of their release.
The gap between the theatrical release and the television premiere of movies really shortened this year. For instance, Kites was aired on Colors on June 27. That very month, the movie was running at the theatres. Last year, the channel had premiered films including Ajab Prem Ki Gazab Kahani and Blue even when they were running in cinema halls. Viacom has acquired rights to films that are still in the making such as Saat Khoon Maaf by Vishal Bhardwaj, Akshay Kumar-starrer Patiala House and No One Killed Jessica, among others.
The year 2010 was the year of exclusive deals, says Amrita Pandey, senior vice-president, international distribution and syndication, Motion Pictures ? UTV. ?2009 saw more of syndicated deals. Also, a lot of pre-release buying happened this year,? she adds.
Currently, there are 12 channels in the Hindi film genre, including Zee Cinema, Zee Action, Zee Classic, UTV Movies, Star Gold, Filmy from Sahara and B4U Movies.
Back in 2007, an exclusive right for a blockbuster movie would cost about Rs 15 crore. However, this turned out to be a risky bet for the channels then, as the best of the lot could only recover a small percentage of the revenue in the first telecast. Only after multiple telecasts of the movie spread over a period of six-seven years, a large chunk of the cost could be recovered. In the last few years, the syndication deal (as part of which the rights are sold to more than one channel) turned out to be a win-win situation for both producers as well as broadcasters. While the broadcasters were less burdened with the cost, producers made more money by selling the same movie to multiple parties.
Usually, in exclusive deals, the worth of a film is arrived at by considering four things ? the director, the actor, genre and scale of the production. The theatrical release of a film is followed by the release of home DVD. Satellite TV telecast rights is the third revenue stream tapped by the makers. According to some experts, soon, producers may skip the second revenue stream due to the shrinking home DVD market.
Though today movies are not the only revenue earner for GECs, these certainly have the potential to push the GRPs. According to sources, in May, Multi Screen Media spent around Rs 21 crore to buy exclusive satellite television telecast rights of 3 Idiots for five years. Also, Sony, which aired the movie first in July, sold airtime at a whooping Rs 2.2 lakh for 10 seconds. Going by TAM numbers, while the first airing on Sony had recorded a TVR of 11, the second telecast of the movie did well too with a TVR of 4.9.
* IPL?s Top Slot in Annual Ad Budgets
Playing on a strong wicket
As the third season of the Indian Premier League tournament was played out this year, Bisleri flooded all the cricket stadiums with its newly launched half-litre and quarter-litre packs of bottled water which sported special cricket labels. ?Bisleri celebrates cricket? was the theme and each of these 15 special cricket labels punned around words used in the game and included a special graphical representation. What better opportunity than the IPL platform to form a connect with spectators who wanted to wet their parched throats after loudly cheering their favourite players?
?The labels got a positive response from all who were exposed to it. In fact, our sales shot up by 25-30% during the IPL,? says Anjana Ghosh, director, Bisleri International. When asked if the brand will continue its association with the cricket series this year she said that it?s too soon to decide.
This is just one of many product innovations done during the IPL. The number of brands associated with IPL for the initial matches have grown from 28 in the first season to 35 in 2009 and 37 in 2010. This year, some of the top advertisers included Vodafone, Samsung and Videocon among others. Among the advertisers who picked the associate sponsorship rights were Pepsico, LG Electronics, Hyundai Motor, Samsung Electronics, Hindustan Unilever, Godrej and Boyce Manufacturing and Tata Photon of Tata Teleservices. As part of an outdoor campaign, Idea Cellular transformed bus shelters into Idea Oongli Cricket net practice centres by covering them with bubble wraps. The copy on the bus shelter reads ?Oongli cricket ka net practice?, inviting commuters waiting in the shelters to exercise their nimble fingers by bursting the bubbles.
However, 2011 will be a challenging year for IPL as it will have to overcome all the negative publicity generated by this year?s controversy around its erstwhile boss with the legendary Midas touch?Lalit Modi. In April, Modi, the man behind the Twenty20 cricket series, got embroiled in allegations ranging from match-fixing and illegal betting to money-laundering and the improper award of franchises for new teams. Soon, Shashi Tharoor, then minister of state for external affairs resigned as fingers pointed to his controversial role in the IPL Kochi franchise.
Another thing that has the potential to mar the success of IPL next year is the Cricket World Cup scheduled to kick-off in February in India . The World Cup is undoubtedly a larger platform in terms of reach. Will the marketers pick one of the two cricketing events or spend smartly?
Jagdeep Kapoor, chairperson and managing director, Samsika Marketing Consultants, argues that in a short period of time IPL has become a strong global brand ? big enough to be a part of a company?s annual marketing budget. ?IPL as a brand has transcended its creators and in days to come, this lethal combination of Bollywood and cricket will become bigger. While the big brands will choose to be visible on both the IPL and the World Cup, some of them may stick to IPL only,? he adds.
* Music Royalties
An encore for radio stations
In a landmark ruling this August, the Copyright Board stated that radio companies will have to pay 2% of their net advertisement earnings from each FM radio station as music royalty. And that has changed the rules of the game for the radio industry and infused a fresh lease of life to private FM radio stations across the country. Till now, radio companies were paying royalties on an hourly rate which was around Rs 850 per hour of broadcast.
The rate of 2% of net advertising revenues as music royalty fee is also in line with global markets. In markets abroad where radio has developed well, the royalty fee is calculated on a revenue sharing basis and is in the region of 0-4%.
Says Prashant Panday, CEO, Radio Mirchi, ?The order clearly recognises the role that radio plays in building the business of music companies. Revenue builds not through physical units, but more from the digital side. In today?s changed environment, physical units are falling because of piracy. If radio was not there, even digital revenues would be small.?
According to Panday, radio revenues will grow from now on, especially after the launch of phase three of radio licensing, as it will allow broadcasters to deepen their footprint while offering advertisers a greater reach. ?2010 was an year of gradual recovery post the downturn. Most media companies are reporting between 10-20% year-on-year growth, but this comes from a depressed base of the previous year. Radio Mirchi is a large media brand and its fortune is in line with the overall media fortune. Besides other things, we will be focussing on our activation business in the next year,? he adds.
Neeraj Kalyan, vice-president, international business, publishing and digital content, T-Series finds the Copyright Board?s order biased in granting compulsory licenses for broadcasts of copyright works, thereby curtailing the powers of copyright owners to bargain. On the other hand, it places the broadcasters on a higher pedestal by placing no fetters whatsoever on their powers to freely negotiate the advertisement rates on their channels. He questions, ?Why is the music industry, which is already facing severe hardships due to rampant internet piracy, being made a scapegoat to favour another industry? If the government is so concerned about the health of radio, then charity should begin at the government?s end by waiving off the license fee charged from FM networks.?
* Consolidation in Media Industry
Of tie-ups, new launches & IPOs
Though 2010 did not start on an eventful note for media companies, things picked up in the last six months. In August, A&E Television Networks, Llc (AETN) and Network18 Group announced a joint venture called AETN-18 India.
The venture will see the rollout of channels including History, Bio and other popular AETN channels in India. The specialised channels will help Network18 claim a share of the Rs 150-200 crore advertising revenue contributed by this sector. Media experts believe that such tie-ups are a sure sign of consolidation in the industry and foray into innovative business ventures.
Additionally, Network18 Group and Sun Network formed a strategic alliance to launch a distribution venture called Sun18. The alliance?s new bouquet comprises Viacom18 channels, Network18 channels, Disney channels and 20 Sun Network channels. As part of the agreement, Sun18 will distribute a total of 33 channels.
Again, New Delhi Television (NDTV) reached an agreement with South Asia Creative Assets to create a strategic alliance for lifestyle channels in India. As per the deal, South Asia Creative Assets will acquire 49% stake in NDTV Lifestyle Holdings (NLHPL). Last year, Scripps had bought a majority stake in NDTV?s lifestyle unit for $55 million. Scripps Networks Interactive also acquired 69% stake in NDTV Lifestyle, anchored by NDTV Good Times, the English lifestyle television channel, with the NDTV Group retaining 31% stake in the JV. However, the deal was called off in May this year, with NDTV terminating its pact.
?The broadcasting business is getting highly competitive in India. Though NDTV still seems to be figuring out the right way to take things forward, its investment in the country is serious,? says a senior media analyst.
Big CBS Prime, the English general entertainment channel from the stable of Big CBS Networks – a joint venture between Reliance Broadcast Network and CBS Studios International finally went on air this November. Meanwhile, TV Today Network joined hands with Rogers Communications Inc to launch Aaj Tak and Headlines Today in Canada, as part of its plan to expand its international footprint.
In print, Hindi speaking markets which attract Rs 2300 crore of ad spends annually saw a lot of action and continued to allure players from Hindi dailies. DB Corp entered Jharkhand and Jammu this year. While Hindustan Media Ventures, the Hindi news business of HT Media, launched its initial public offer for expansion of the brand, Jagran Prakashan took over the newspaper business of Mid-Day.
* Regionalisation of TV
Discovering Bharat on prime time
Check out any general entertainment channel during prime time, and you are sure to see a small-town girl valiantly fighting the odds in one of the many serials being aired. The trend started a couple of years ago when Colors launched Balika Vadhu and Na Aana Is Des Laado that addressed issues such as child marriage and female infanticide. That proved to be a game changer and today every GEC has at least a couple of serials set in rural India telling the stories of those living in the hinterland or tier II and tier III cities and towns. Star Plus won back its number one GEC status this year on the back of shows such as Bidaai and Mann Ki Awaaz Pratigya set in the small towns of UP. Recently it started another serial Gulaal set in the barren stretches of Kutch.
Says Saurabh Tewari, head of programming – fiction, Imagine TV, ?Over the years, cable and DTH penetration has increased in the interiors of the country. As opposed to many sources of entertainment like malls and multiplexes available to people living in urban India, those living in semi-urban or rural areas rely solely on television. Though most of these households have monthly incomes in the range of Rs 8000-10,000, they prove to be loyal viewers as compared to the viewers in metros – who sample and switch to other option faster.? Imagine TV launched two such shows this year, Gunahon Ka Devta set in eastern UP that wakes up every day to a new incident of crime and Baba Aiso Var Dhoondo set in Agra.
According to industry estimates, 60% of the viewership of these shows come from cities and towns other than metros. Another reason for more region based stories coming to life on the small screen is a surge in the talent in production and programming hailing from these places.
The back to the roots trend isn?t confined to the Hindi GECs only. With audiences looking to connect with their cultural base, regional language channels have come up in a big way this year with the big networks penetrating this segment of the television market. The six key languages in the regional GEC space are Malayalam, Tamil, Telugu, Kannada, Bengali and Marathi. The regional channels represent a growing opportunity in terms of revenues and the programme ratings indicate that they are well-received by audiences. In the four southern markets comprising Tamil Nadu, Andhra Pradesh, Karnataka and Kerala, regional GECs captures almost 50% of the viewership.According to industry estimates, Mahuaa?s total viewership in Bihar was as good as that of second-rung Hindi GECs. As regional channels cater to specific markets, they have a better chance of helping local brands, thus offering an attractive proposition for both network broadcasters and smaller firms.
Says Rajesh Jain, executive director and head (M&E practice), KPMG, ?If you look at the advertisers, every sector, especially FMCG, real estate, auto, is looking to increase its reach and footprint. So because of this, our prediction is that tier 2 towns will be as big as tier 1 towns in the next ten years. If those consumers are sitting in those pockets, advertisers will tap every available medium to reach them. So that?s the driver behind the growth of the regional channels.?