Friday, September 3, 2010

The next big in television market: go regional

Recently i was at home watching T.V. one thing that fascinate is the number of channel are higher than the last time i was at home. But the more interesting thing was the rise in the number of regional channel.

As i closely studied the market the number were alarming. The majority of channel are entering in the regional market. Few year earlier only zee TV used to have regional channel in Punjabi, Guajarati (which they have closed last year), Bangla and most important Marathi.

In my opinion what changed the thinking of the star and zee to explore more regional market was the phenomenal success of sun tv and its reach. Sun tv is most watched channel in the cabel TV in south, more than star plus and zee (at lest they do not watch melo drama of north).

And they hold at least 90% share of the market and they dominate the south market with great success. But recently zee challenged it by launching few channel in south where they have no presence previously. They launched the channel in Tamil, telgu and kannad. They are hoping to break even all the channel in this fiscal year. Going by report they are very close to reaching their target.

The question arises why....?

The answer is very simple because the type of regional audience. India has so many languages and so many states and all of them have their own state language. If we see the demand in the market then there is more demand of the regional channel. People in different states like Bengal which has history in literature creates huge demand of regional channel. At least 4 to 5 regional channel are still running in the state.

The economic slowdown has also forced the media industry and giants like zee and star to look for the new market and they feel the regional market is for the future and there is lot of potential to develop it into the full market like it is in south with sun TV. They have the perfect model to go regional. They have a such a packed distribution system that it is hard for new channel to survive in the market.

Still Marathi, Tamil market are having scope to develop and growth option for the company.

Saifi shahid

MBA 2nd year