Colors, a Hindi general entertainment channel (GEC) and flagship brand of Viacom18, had a dream run to the top when it was launched. Then, it started showing signs of stagnation, while competition from Zee TV and Sony Entertainment Television started building. From a two-player race, the GEC genre is a four-horse one, with a photo-finish result many times. Raj Nayak, chief executive officer, talks about the genre and his vision for the channel to Gaurav Laghate. Edited excerpts:
The Hindi GEC space is seeing tough competition among STAR Plus, Colors, Zee TV and Sony Entertainment. Do you see the trend continuing or will there be a clear winner? How will digitisation help?
This is a very competitive and dynamic space; there is no clear leader and I see this trend continuing... what will happen is that people will look at performance based on overall GRPs (Gross Rating Points, a viewer measure) of the channel and not necessarily rankings.
Right now, too much emphasis is on the ratings because a majority of the revenues comes from advertising. With digitisation, the subscription and advertising ratio will get a better balance and it will ease the pressure a bit on ratings in the long run. Digitisation is also the best thing happening for the industry right now. In the short run, there will be some teething problems, with a lot of give and take but in the long run, it will be good for all stakeholders — the cable operator, the MSO (multiple system operator), the government, the broadcaster and the viewer.
Colors was launched with socially relevant shows, a trend later picked up by other GECs. Somewhere in between, some of your shows started fading. What are the reasons and how are you planning to combat this?
There is a difference between perception and reality. We never really faded; we have been a consistent Number Two in our fiction programming for the past 18 months. Success, sometimes, can also be your biggest enemy and that’s what happened. As we became clear leaders, we stopped experimenting.
What we have managed to do in the past one year is to remain true to the Colors DNA and at the same time, experiment with the programming line-up. If you look at the latest ratings in fiction programming, we are slot leaders in four of the top eight shows in the GEC space...Our ongoing shows, such as Balika Vadhu and Uttaran, continue to do very well, while others like Susural Simar Ka and Madhubala are slot leaders. All our non-fiction shows have done very well, whether it is Jhalak Dikhhla Jaa, Surkshetra, India’s Got Talent, Aaamna Samna or now even Bigg Boss. We have a certain positioning, so, while we continue to target the masses, we will never compromise on the class. So, you see a certain standard we maintain in the quality of our production and presentation.
Yes, I wish all my shows get ratings of 5+ TVR (TV rating points) but it is youth in today’s cluttered environment. As long as our shows are working, are slot leaders, help us maintain our channel’s target GRPs and are profitable, we are happy.
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Having said that...we are not averse to experimentation. We launched four new fiction shows — two worked, two did not. We might fail but that will not stop us from continuing to experiment and give our viewers new concepts and differentiated shows.
Colors, as a channel, has many firsts. You also spoilt the market with multiple movie airings and big premières. Now, you’ve suddenly stopped. Why?
There are multiple reasons. When Colors was launched, it was the ninth GEC in the space and my predecessor, Rajesh Kamat (then CEO), realised movies would be the fastest route to grow and build reach in a cluttered environment. It probably was the right strategy at that time and the decision worked very well for us. Today, it is a different story. We are an established, leading, GEC player. The cost of movie acquisition has gone up five times and in today's environment, it doesn't make business sense unless we acquire the movies at the right price. While we continue to buy movies, we are less aggressive than before.
So, first you spoilt the market and later syndicated close to 500 titles to STAR India. Does it mean you have shelved the plan of the movie channel?
I don't understand what one means by spoiling the market. As a broadcaster, we are interested in giving content that appeals to our viewers and if that content is available to us at a reasonable price, we acquire it. Today, people are paying five times the price for similar movies; does that mean they are spoiling the market? As long as it makes business sense, channels will continue to buy, and it is the supply-demand ratio that will determine the pricing.
We have not cancelled the plan but have indefinitely postponed it. I am sure at the appropriate time, when the board thinks it is appropriate, we will definitely have a Hindi movie channel.
Now that Network18 will have ETV channels under its belt, it is learnt that the news channels will be under TV18, while the regional entertainment channels will be under Viacom18.
I cannot comment on that.
What will be brand Colors’ growth strategy?
Maybe it’s a little premature for me to talk at this moment, when we are focused on consolidating and steering Colors to the Number One position. Yes, somewhere over a period of time, I would like to see the Colors' petal on many more channels.
You have launched a new channel, Rishtey, in the UK. When are you going to launch that in India?
There are no immediate plans. Subject to board approval, we might launch the channel in India next year.