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Thursday, June 21, 2001

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Cable TV industry: Need for creativity, innovativeness

IN INDIA, cable operators began modestly as broadcasters of signals into specific geographical areas. Today, however, cable TV has a significant presence in the media industry. It has the potential to become a part of every major advertiser's media consideration set. As cable operators continue to be both broadcasters of satellite signals and providers of 24 hour cable programmes, their influence over their audience seems considerable. The dual role played by these organisations also enables them to receive revenues from two sources - cable subscription fees and advertising revenue. It is time to take stock of this burgeoning media, its present status and its future growth potential.

Cable operators in India made a humble beginning in the broadcasting industry by beaming video films. A highly film crazy Indian audience subscribed to the cable operators because it enabled them to see as many as two to three movies in a day. As the viewers became tired of watching movies, they began to telecast film based programmes, song and music shows and also began covering programmes and functions of local importance. Today, however, cable TV operators are telecasting educational and information oriented programmes and serials as well.

It is common knowledge that the television industry has become highly audience specific. It caters to different sets of target audiences such as music lovers, art lovers, sports lovers, nature lovers and movie buffs. One will not be surprised even if broad categories such as sports or music get fragmented further and if small miniscule niches in each category are identified.

The heterogeneity of Indian audiences has successfully accommodated niches that cater to specific regions or people who speak specific languages. Cable TV has rightfully found its place in the media industry by catering to people who reside in a certain locality or region. Geographic segmentation has always been a success in Indian marketing and it is not surprising therefore that cable TV also has been an instant success.

Finding a place in the audience's viewership schedule was perhaps an easier task. But sustaining it by maintaining or increasing the viewership is more difficult. Nevertheless, cable TV has managed to gain the attention of advertisers. Local retailers and dealers find the low rates attractive. Regional and national advertisers, who wish to target consumers of specific localities, will in future include the cable TV in their media consideration set. Moreover, local malls and shopping complexes, supermarkets and speciality stores also find the medium economical and suitable. The reach being region specific, spending on advertising by paying for the non-target audience can be avoided.

The picture presented above may perhaps appear rosy as if all things are well and there are no shortcomings in the cable industry. The greatest weakness of cable TV is the poor quality of programmes and the poor ratings they receive as compared to the network programmes. By offering niche programmes and providing local flavour and catering to local tastes and interests they can temporarily overcome the problem of poor ratings.

The invitation, and that too a poor imitation, of the network programmes (which are popular) is yet another common mistake committed by most cable TVs. With the remote in their hands, the viewers have all the freedom to swap channels and go in for the original rather than the imitation. Cable TVs should understand that their market being a niche one they should concentrate on tailor-made programmes for the target audience. Any attempt to follow the footsteps of national and regional channels could spell disaster to them. Reruns of popular network programmes are also not a solution though it is being followed by most cable operators. All this will only serve to confuse the viewers by diluting the positioning advantage they have gained. The strategy here is to further emphasise on the local flavour aspect by enhancing the quality of the same. By creating an inquisitive mind for local news the viewers attention could be gained. The attention could be further sustained by incorporating creativity and innovativeness to the local aspect.The unorganised nature of cable TV operators is also an added disadvantage. The absence of reliable data on viewership, rating points of programmes and the like is yet another factor that can deter advertisers. The uncertainty factor can be significant considering the fact that alternative media such as newspapers or satellite channels can avail themselves of the services of syndicated services that provide such data to their advertisers. Through better regulation of cable operators the industry can be made more organised.

The greatest challenge for cable is that viewers and advertisers are asking for quality. The exposure to national and international channels enables them to compare the quality of programmes. Cable operators should remember that they are not merely competing with another local cable TV competitor; they are competing with innumerable channels for the viewers attention.

In India, the present scenario appears to be opportune for the cable TV industry. The future of television may take the same course that the press media has taken in the past. In India, a number of specialised magazines have come up. The same has happened in the TV industry also. Regional newspapers have also grown over the last few decades and a few of them enjoy higher readership as compared to the national English dailies as well. In the TV industry also a number of regional channels such as Sun TV and Udaya TV seem to be doing well. Cable TV which caters to specific local audiences have made a humble beginning and their growth prospects seem good.

Sukanya Ashokkumar

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