News Standalone regional channels face pressures

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National networks dominate in regional markets

Star India for instance has been putting much emphasis ongrowing their strength in regional markets in which they were not present. They acquired Telugu Network MAA TV for an estimated Rs.2,500 crore in February. It had previously acquired Vijay TV and Asianet which have done very well especially in the last couple of years. It is also further looking to launch a second Tamil GEC called Vijay Plus. The network now has its presence in all regional fronts such as Tamil Nadu, Andhra Pradesh, Karnataka, West Bengal and Kerala. In the regional market of Tamil Nadu, Sun TV occupies the largest viewership share and consequently a bulk of advertising spends go to it. But next in line is Star’s Vijay TV. In the Andhra Pradesh market, Star’s MAA TV occupies 25% of the viewership share, while MAA Gold has a 2% share according data from TAM subscribers on relative channel share for Jan-March 2015. This gives it 27% share in the market which is the same as Sun TV Network’s Gemini which also has a 27% viewership share. In the Maharashtra market, Star Pravah is at No.3 spot and close to Colors Marathi with a viewership share of 17.40%. In the Karnataka market, Star is in second place in terms of viewership share after Sun TV Networks Udaya TV (32%) with Suvarna and Suvarna Plus having a 20% and 6% viewership share respectively. In West Bengal, Star Jalsha has the maximum viewership share with 43.10%.

Standalone regional channels feel the pressure


With the dominance of the national networks in the regional space, where does that leave standalone regional channels? Except for Sun TV Network which is the one of largest networks operating in the regional space the other players are much smaller and operate mostly in one market. With the expansion and investment in the regional space by national networks,many standalone regional channels are feeling the pinch, especially in content costs. National network supported regional players are receiving enough investment for original content production, while standalone regional channels are forced to do the same to stay in the game. While dubbed content of Hindi shows which used to cost around Rs.25,000 per episode and used be the staple of standalone regional players are now forced to produce more original content which costs around Rs.70,000 – Rs.2,50,000 per episode.

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Eshita Surana, Director of Bengali GEC Aakash Aath said that the competition has been increasing a lot and the national network owned regional channels have put a lot of pressure on standalone regional channels. The channel is currently fourth in the ratings chart in the West Bengal market. Similarly, V. Kalyanasundaram, MD, Polimer TV a Tamil GEC in a media report had said that after competition increased, they had started investing in original content and the costs were significantly higher.


Standalone regional channels face heat from national networks’ acquire-expand strategy
 
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