Dinakaran likely to be slashed to Re 1

Price of Tamil daily likely to be slashed in the coming weeks

In what might be considered a major move that may trigger a change in the market dynamics of Tamil dailies in Chennai, the price of Dinakaran (controlled by Sun Network), a Tamil daily is likely to be slashed to Re 1 from Rs 3 in the coming weeks.

All the newspapers distributors in the city have been informed that there is going to be a more than half price cut on the cover price of Dinakaran newspaper.

When reached for comments on the reduction of the Dinakaran's price, Kalanithi Maran, chairman and managing director, Sun Network was unavailable.

A few months ago, Maran had mentioned that he had plans to launch a Tamil newspapers as he aimed Sun Network to be present in all the spheres of communication. This was materialised when Sun Network had taken formal control of Dinakaran group of Tamil publications on June 20.

However, the price at which the Dinakaran group was acquired by Sun Network was not made known. When Dinakaran group was acquired by Sun Network, Maran told Business Standard (on June 16) that he plans to revamp the newspaper without changing the brand name.

When asked about the imminent price cut in Dinakaran, Maran pointed out that his aim will be to make Dinakaran the number one Tamil daily in the state.

Marketing analysts say that ten months ago, Sun Network marketed its Tamil weekly Kungumum by giving freebies and thereby has become the number one weekly in Tamil Nadu. They expect the media baron to slash the price of the recently acquired newspaper by half or more.

The market leader in Tamil Nadu, Daily Thanthi is priced at Rs 3 during weekdays and at Rs 4 on Friday, Saturday and Sunday. Dinamalar is also priced similarly.

Dinakaran with nine editions does not come under the Audit Bureau of Circulations (ABC) but is estimated to have a circulation of 3.5 lakh. According to the ABC data (July-December 2004) Daily Thanthi with 14 editions has a circulation of 7.9 lakh copies and Dinamalar with a circulation of 5.8 lakh copies.

Sun Network has 13 television channels in all the four southern languages, has cable arm called Sumangali Cable Vision (SCV), four FM channels and has a presence in print media with its Tamil weekly magazines Kungumum, Mutharam and Vannathirai.

The Network also plans to launch direct-to-home (DTH) called 'Sun Direct TV Pvt Ltd' by the end of the year.

Taking control

Few months ago, Maran planned to launch a tamil newspaper as he wanted Sun Network to be present in all the spheres of communication

Sun Network took formal control of Dinakaran group of Tamil publications on June 20

The price at which Dinakaran group was acquired is not known

Analysts say that ten months ago, Sun Network marketed its Tamil weekly Kungumum by giving freebies and thereby has become the number one weekly in Tamil Nadu