A battle for business eyeballs

The battle for eyeballs in the business news television business is about to begin. The new warriors descending on the battlefield include TV Today, NDTV and Bennett, Coleman & Co.

Even CNBC TV18, which runs India's only English business news channel, is ready to launch a Hindi version called CNBC Byapar. Sai Kumar, the company's vice president, is particularly proud of CNBC TV 18's status as a business channel pioneer.

"When we launched the channel in early 2000, no one even talked about an exclusive channel for business news," he exclaims, adding that Byapar is expected to go on air in December.

Needless to say, preparations for the launch of the Hindi business channel are in full swing. The company has already set up three state-of-the-art studios in Mumbai, spread over 50,000 square feet. NDTV, meanwhile, has applied to the ministry of information and broadcasting to allow it to uplink its business channel. To test the waters, two months ago, 24 x 7 (NDTV's general news channel) was converted into a business news channel between 9 am and 4 pm.

And the results have been "fantastic," claims NDTV Media's chief executive Raj Nayak, who does not elaborate on the additional revenues the business programming is generating.

Bennett, Coleman & Co. confirmed to Ice World some time ago that it is launching a business channel next year but is unwilling to share further details.

Zee too will be launching a business channel. Says Ashish Kaul, vice president, corporate brand development, at the Essel group: "The essence of a TV channel lies in finding the right set of viewers and then working backwards to create the packaging and content, " he says. Zee is said to have bought space at the Dubai Media City to create a hub for a sports and a business news channel.

Though TV Today's executive director G Krishnan is chary of divulging the company's business channel plans, he argues that having business news in the TV Today portfolio (comprising Aaj Tak and Headlines Today), makes immense business sense.

Krishnan says: "TV Today has the in-house capability to run the business channel differently. We are working to come out with a channel that will address the issues of viewers." He states the obvious "� innovation and creativity will be critical for the survival of business channels.

"There's room for covering business news differently. There is space for a more viewer-friendly business news channel, may be one that offers tips to investors and looks beyond Mumbai and Delhi," he says.

But CNBC TV18's channel has been successful because it caters to stock market investors, brokers and fund houses, most of whom are based in Mumbai. It's not clear how other business channels will flourish without substantial stock market coverage.

The question as to whether so many business channels can survive also begs an answer. NDTV political editor Rajdeep Sardesai says that if three premium business newspapers can find readers and advertisers, three to four business news channels can do so too.

"The business papers in the country exist comfortably and share revenue while the market is expanding," says Sardesai. The four business newspapers together garnered advertising revenue last financial year of Rs 340 crore, up from Rs 290 crore in the previous year.

But the country's sole business news channel, CNBC TV 18, is not hugely profitable. The company earned Rs 14.35 crore in advertising revenue and made a profit after tax of Rs 2.20 crore during the first quarter of this financial year.

However, in the last financial year, it reported revenues of Rs 43.12 crore and post-tax profits of Rs 1.75 crore.

NDTV's Nayak believes that with more channels coming in, the advertising and viewership pie will expand. "Currently, there is only player. Therefore, the market is not expanding that fast. Advertising revenue will increase to accommodate all the players," he adds.

Agrees Chandan Nath, executive vice-president, Mudra: "Over half-a-dozen business channels are lined up to be on air. While competition will help expand the market, general news channels may lose revenue to some extent."

Nath thinks that advertising of products like credit cards, automobiles and financial services will move to the business news channels.

Nayak says that business channels will target producers of white goods and fast moving consumer durables, lifestyle products, apart from financial advertising, including initial public offerings. However, one needs to be innovative to sell time and "NDTV Business will ensure that innovation is its key growth driver," he says.

Some advertising industry men think that the business newspapers will lose some advertising revenue to the channels "� and perhaps even employees. Says the partner of one advertising agency: "The channels are also looking for space marketing people from the business newspapers."

Broadcasting company executives like TV Today's Krishnan also expect a fresh round of poaching of journalists. NDTV's Sardesai says that its business channel needs at least 20-25 additional people.

For its Hindi business news channel, CNBC TV 18 has already hired a few journalists but is seeking at least six more senior journalists with experience in business journalism.

CNBC TV 18 executives, meanwhile, say that they are not feeling threatened in any way, arguing that 24x7's experiment with business news between 9 am and 4 pm has not really affected CNBC TV 18. According to TAM (All India, male 25 years plus age group, July 4 till September 18), CNBC TV 18 had a 72 per cent share of the viewership for business in urban India while NDTV 24x7's share was 28 per cent.

In the same target group, the business viewer spends, on an average, 54 minutes on CNBC TV 18 versus only 16 minutes on NDTV 24x7. "We feel that our own Hindi business channel may emerge as a stronger rival to our English channel," concludes Sai Kumar.

Famous last words? That has to be seen.