News channels may share infrastructure

In the wake of the major telecom companies agreeing to share infrastructure such as towers to cut costs, the country's news channels, driven by the same motive, have come together to discuss sharing of infrastructure and equipment.

There is also some preliminary talk of setting up a common television news agency on the lines of Press Trust India, which provides identical feed to print media outfits.

The major news channels are said to have reacted positively to the idea, especially the listed ones, which are accountable to their shareholders on aspects like cost efficiency and profitability.

Subhash Chandra, the chairman of the Mumbai-based Zee group, whose bouquet includes Zee News and Zee Business, confirmed the development.

"News channels are talking of shared services, such as the pool of OB (outdoor broadcast) vans. For a single event, why not use just one van, instead of 20? Technologically, it is possible. All that is needed is a little augmentation of the equipment," said Chandra.

There are as many as 20 news channels in the country "" and many more in the pipeline "" of which only two or three are estimated to be making money. Already, consolidation in the sector has begun with CNN-IBN acquiring Channel 7 "" subsequently renamed as IBN 7 "" from the Guptas of the Jagran group.

Industry experts peg the cost of running a news channel at as much as Rs 5 crore a month. Along with employee salaries, which in certain cases account for as much as 40 per cent of a news channel's expenditure, news gathering is a significant cost head."For any event, every channel sends its equipment, vans and crew.

The only benefit unique to each is its name or logo on the microphone. We should try and do this (sharing of equipment and services)," said the chief executive of a news channel, which is part of the discussions. He, however, pointed out that operatioanalising the idea would not be a cakewalk.

Such an initiative has to contend with the issue of subjectivity "" the channels attach immense importance on having their own 'byte' "" and exclusivity.

The advocates of the idea, however, point to the success of telecom services operators in agreeing to share infrastructure even though they compete fiercely in the marketplace.