Nick India, the MTV Networks channel for children between 4 and 9 years, is depending on consumer products, online and mobile platforms, to create a ‘tangible’ revenue stream for the channel.
The channel, launched in 2006 in India, is reworking its website in order to add its original content and shows online, build a community of online users, in order to attract online advertisements. Merchandise, too, will be available for online purchase.
Currently around 50 per cent of the channel’s revenues are from advertisements and the remaining from cable subscriptions.
Other revenue earning streams contribute a negligible percentage to Nick’s overall revenues right now, but the company is targeting the emerging media like internet and mobile, which are among the fastest growing other revenue streams (ORS), to ensure that in four years from now ORS contributes at least 10 per cent to the company’s revenues.
Speaking to Business Standard, Kashmira Gandhi, Associate Director - Marketing, Nick India, said, “We are completely redoing our website to add games, music downloads, as well as a section for parents. We will also have blogs and friends column for children. We are also looking at the mobile platform for ringtone, wallpaper and games downloads.”
“The internet and mobile media are fast catching up among children. We have a lot of teenage viewers upto 16 years of age who are our regular viewers,” Gandhi explained.
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The company has tied-up with Airtel about two months ago and has introduced a downloadable pack of games, wallpapers, music, ringtones, etc, for a monthly fee of around Rs 30.
Going forward, the company intends to tie-up with other telecom service providers to extend reach.
While the downloads from Nick’s website will be free of cost as of now, mobile downloads will come at a cost of around Rs 30 per month, depending on the offerings and service provider, informed Gandhi.
“We will introduce three new live-action and animation shows by March 2009. New downloads will be available on internet and mobile. The range of current offers will be expanded,” Gandhi said.
The company is also expanding its consumer products range and retail presence.
It currently has merchandise priced between Rs 50 and Rs 4,000 in around eight categories like back-to-school which is tiffin boxes, school bags, etc, toys and party products like balloons, stationery, IT products like children’s educative laptops priced at Rs 2,000, among others.
The company will introduce t-shirts this year, among other merchandise plans.
It is also talking to new retail chains in India, including, Future Group, to retail its products. Currently, its consumer products are available at branded stores like Pyramid, Shoppers' Stop, Landmark, etc.
Nick currently is a 24-hour pay channel in Hindi, with the option of an English audio feed on DTH. The company is also toying with the idea of introducing feeds in south Indian languages available on cable and DTH. Over the last six months, Nick has seen its channel’s share double from 17 to 27 per cent, added Gandhi.