News Sun TV plans to shift to commissioned programming model in non-Tamil markets

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South Indian broadcast major Sun TV Network is exploring a change in its business model in the non-Tamil markets. Starting with Andhra Pradesh, where it owns Telugu general entertainment channel (GEC) Gemini TV, the company is planning to start commissioned programming to fortify its presence in that market. “In order to strengthen its presence in the Andhra Pradesh market, the company would start commissioned programming similar to the strategy adopted by Hindi GECs unlike its sponsored programming strategy in the Tamil Nadu market,” a source familiar with the development said.
Commissioned programming is similar to what private Hindi GECs follow, wherein they commission the show to a production house and pay on a per-episode basis. On the other hand, Sun TV Network’s business model so far has been of sponsored programming (or slot selling), wherein the company charges a fixed fee from the producers to broadcast their content on its channels. Content producers are given a part of airtime to sell, meet their costs and earn profits.
While Sun TV’s model makes it highly profitable and mitigates the risk, rising competition has made this slot sale model less effective in other markets where Sun TV Network’s channels have lost dominance. The move towards commissioned programming, however, will increase content cost for the company.

http://www.televisionpost.com/television/sun-tv-plans-to-shift-to-commissioned-programming-model-in-non-tamil-markets/ | TelevisionPost.com
 
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