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City-specific channels find favour with broadcasters

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Aminah Sheikh Mumbai
Last Updated : Feb 05 2013 | 2:06 AM IST
TV channels are going the newspaper way by launching city-specific channels. Newbies such as INX News and NDTV's MetroNation will join the fray of existing news broadcasters Sahara Samay and Aaj Tak who already have city specific channels.
 
INX News, promoted by Indrani Mukherjea plans to launch three city-specific news channels while NDTV will launch MetroNation, city-specific lifestyle channels for Delhi, Mumbai, Chennai and Kolkata which will feature lifestyle, entertainment and news pertaining to the city.
 
"There is a lot happening in each city and viewers are interested to know about it. Metronation will address the same," said Smeeta Chakrabarti, CEO, NDTV Lifestyle.
 
Introducing city-specific channels is one way broadcasters are addressing the growing issue of audience fragmentation, say media experts.
 
For instance, Sahara Samay which owns six city-specific news channels "� Sahara Samay Rashtriya, Sahara Samay UP/Uttaranchal, Sahara Samay Bihar/Jharkhand, Sahara Samay MP/Chhattisgarh, Sahara Samay Mumbai, Sahara Samay NCR "� rolled out these channels because of the wide segmentation that has taken place in television viewing.
 
"The universe has expanded in terms of size, but it has also shrunk in terms of specific viewer expectations and demands. The coming era is the era of demand-based content providers and that may take the form of city-specific channels or split-beam networks catering to the special needs of a marketplace already over spoilt by an over-abundance of choice," said Abhijit Sarkar, head - corporate communications, Sahara India Pariwar.
 
Of course city channels help broadcasters complete their bouquet. "It has been noted that such channels ride on the mother channel," said an executive from a leading channel. "City-specific channels are an excellent channel bouquet strategy for broadcasters in the expansion mode," he added
 
According to industry estimates, the cost of setting up a city-specific channel could vary between Rs 10 and 15 crore, while for a general entertainment channel the cost is around Rs 150 crore.
 
The major advantage of city-specific channels is the focus, considering it caters to a more sharply-defined target audience. This is a major driving force for advertisers too.
 
"City-specific channels are innovation-friendly. One of the challenges advertisers face today with national channels is its broad geographic base. Advertisers end up spending more while they want to communicate their offering to only a selected audience in a particular city. These channels will help address this issue," said an executive from a leading media buying house.
 
According to industry players, currently when it comes to advertising on city-specific channels there exists a major paradox. Media buyers are still stuck on the 'national' phenomenon. However, "Things are evolving to accommodate the content catering to a specific viewer matrix that will soon determine media buying as well," adds Sarkar.
 
The total size of the TV advertising industry is expected to grow from the present Rs 6,600 crore to Rs 12,300 crore by 2011, implying a 13 per cent cumulative annual growth over five years, according to a report by PricewaterhouseCoopers. Media experts estimate city-specific advertising to contribute one-third of the entire television advertising pie in the coming five years. Currently, the contribution is negligible.
 
LOCAL FLAVOUR
 
  • By introducing city-specific channels broadcasters are able to address the growing issue of audience fragmentation
  • The major advantage of city-specific channels is the focus, considering it caters to a more sharply-defined target audience.
  • The cost of setting up a city-specific channel could vary between Rs 10 and 15 crore, while for a general entertainment channel the cost is around Rs 150 crore.
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    First Published: Sep 30 2007 | 12:00 AM IST

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