TV’s Distorted Picture

It is Hindi news channels that reach more homes. So, why do their English rivals end up getting the premium?

It’s a story you are unlikely to catch on the 9o clock news tonight, yet it is the television news industry’s worst-kept secret. Despite the fact that Hindi news channels’ reach and content are better than those of their English rivals, the former’s advertising rates are far lower. On an average, the effective ad rate for a Hindi news channel is around Rs 1,450 per 10 seconds, while the figure for English news channels is Rs 2,250. Some media buyers point out that some Hindi news channels such as Aaj Tak and Star News do command a premium and fetch between Rs 3,000 and Rs 3,500 per 10 seconds. The catch: that’s true of only certain time bands—say, between 7 and 10 AM and 8 and 11 PM. What explains the apparent irony of the situation? Blame it on two things: the clutter in the news space, and the (wrong) perception that Hindi news channels don’t reach the creamy layer of viewers. Consider: One-third of all TV channels in India are news and current affairs. There are close to 44 news channels in Hindi, English and regional languages, beaming into 68 million cable & satellite (C&S) homes. It is believed that 10-12 per cent of all money spent on TV advertising goes to news channels. According to media buyer estimates, for the year ended March 31, 2007, the news channels garnered ad revenues of about Rs 750 crore, compared to Rs 620 crore the previous year—a 21 per cent growth. The lion’s share went to Hindi news channels such as Aaj Tak, Zee News, NDTV India, Sahara Samay, and India TV, and only 25-30 per cent went to English news channels. On the face of it, that seems like a fair story, given that for the week 01 to 10, 2007 (that is, January 1 to March 10), TAM data shows that the share of Hindi news channels was 88.5 per cent (English news channels had the rest). During this period, Aaj Tak, owned by the group that also publishes Business Today, had a share of 21.7 per cent, followed by Star News with 14.3 per cent and Zee News with 11.7 per cent. In contrast, NDTV 24x7 had a share of 3.6 per cent, followed by CNN-IBN (3.2 per cent) and Headlines Today (1.5 per cent). As per this data, the average time spent by a viewer on Hindi news is a staggering 97 minutes as compared to 20 minutes on English news channels during the said period.In other words, it is evident that Hindi news channels reach far more homes than their English counterparts do. So, why do advertisers shell out more for spots on English news? “Much to the dismay of the Hindi news channel owners, the fact remains that channel ad sales have a lot to do with perception, which in this case is in favour of English news channels,” says Atul Phadnis, CEO of Media e2e, a technology group specializing in business solutions designed for broadcasters and media companies. Of course, media buyers have their defence. “Hindi news channels compete with the mass and cinema channels and, therefore, have a lower audience profile. The English news channels, in comparison, compete with the English genre channels,” says Ajit Varghese, CEO, Maxis, part of WPP’s Group M.Guess what? That’s not entirely true. Says G Krishnan, CEO of TV Today, which runs Aaj Tak: “There is a very high duplication of English news audiences on the Hindi channels. In fact, viewership data indicates there is almost 80 per cent duplication between the Hindi and English news genres. This just goes to prove that the difference is only in perception, not in reality.” What this would indicate is that even urban India largely consumes Hindi programming. A case in point would be Bollywood. The premium on English news channels is also a factor of the cost per rating point (CPRP) matrix that media planners use for television channels. CPRP, an obsolete currency, is a relative measure as against an absolute measure. The underlying population represented by the rating point continues to grow as C&S universe expands. But CPRP itself is based on the 7,000 people meters--this is grossly inadequate to represent the television viewership habits in India. The CPRP of English news channels is higher despite lower share of viewership, compared to the Hindi news channels. Therefore, the former garners more premium. Says Phadnis: “CPRP is higher on English news channels despite their lower viewership because the perception of viewership is better.”What are the Hindi news channels, then, to do? “Create a distinct product appeal and stress on the quality of content,” says Uday Shankar, COO Star India and CEO Star News. Krishnan of Aaj Tak adds that the Hindi news channels have a much higher reach and a more diverse audience profile than English news channels do in the relevant urban English speaking markets and this fact needs to be communicated aggressively to the planners. “Also, its very important for the Hindi news channels to come together and decide on price points, as opposed to dropping their prices in an attempt to undercut rivals' client bases,” he says.But with 8-10 more channels expected to hit the airwaves over the next six months, there’ll always be some channel willing to undercut another. “Consolidation is the way forward,” quips Sanjay Dua, National Sales Head, CNN-IBN. Perhaps, but which Hindi news channels will acquire or be acquired? For an answer, stay tuned.



(Published in BT)