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| | | Indiantelevision.com's
interview with Sahara India Medias TV news head Prabhat Dabral |
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'Our
regional news channels poised to break even' |
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| | Posted
on 29 August 2006 | | |
| Fifty-something
Prabhat Dabral may not look like an archetypal head of a clutch of news channels,
but this former Doordarshan man has managed to climb to the top on the basis of
sheer tenacity. At times braving downsides in life --- being sidelined professionally,
as he would frankly admit. Managing Hindi language region-specific channels for
a group like Sahara is not easy. And, that too when the group is known for making
frequent structural changes and has flirted over the last few years with some
big names of Indian television --- like one of the original poster boys of domestic
TV broadcasting Vinod Dua. Dabral admits that when he looks back over
the eight years that he has spent with the Sahara groups media venture ---
the news channels project is barely three years old --- one thing that has stood
him good is loyalty. At time, I have thought what am I doing here? But then
I have managed to hang on and ride out the rough patches, firmly believing in
the vision of the groups chairman (Subrato Roy), says the man who
at one time in his career has also worked with the Delhi bureau of GDR TV before
the collapse of the Berlin Wall. In this interview with Indiantelevision.coms
Anjan Mitra, done over a rare leisurely Sunday lunch of traditional
home cooked fish curry and rice, vice-president of Sahara India Media and head
of television news venture Dabral discusses the future of Sahara Samay news channels,
which have been languishing towards the bottom of the ladder, except for a brief
period of time when the national channel, Sahara Samay Rashtriya, shone brightly
immediately after launch few years back. Surprisingly, Dabral also does not flinch
away from some ground realities, which, according to him, may also change in the
future. Excerpts: | | |
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Why dont you start off by giving an overview of Sahara Samay news channel
venture? Sahara Samay (samay in Hindi means time) is a clutch of Hindi
news channels targeting various Hind-speaking regions of North India and Mumbai.
The venture was started with a view to have a new kind of television news dissemination
whereby we targeted Hindi regional areas. We thought that the regional markets
were growing for a variety of reasons and there was an opportunity to satiate
the hunger of people there for news and also attract advertisers who would always
not like to address audience at the national level with particular products. In
fact, that is our strength still, criticism notwithstanding. The basic
vision was simple: television market was not confined to metros and urban areas
only. Boosted by an economy on the upswing and growing consumerism, newer markets
were getting created and our news channels try to address these emerging markets
where the needs are more local (news), rather than national or international.
Over these three years, we have managed to create a mechanism where through
our state-specific channels we target small city audiences through 50 bureaus.
We have Sahara Samay Rashtriya channel, which operates at the national level,
apart from those dedicated for states like Uttar Pradesh, Madhya Pradesh, National
Capital Region of Delhi, Rajasthan, Bihar and part of Maharashtra (Mumbai). In
a way, each of these channels can be further sub-divided into smaller cities of
these states whereby we try to address the needs of viewers through appointment
viewing at particular time bands. | | |
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'We
talk to small town audiences in a language that they understand and present a
look that they can relate to. From Delhi or Mumbais perspective, it might
be down market' |
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Did Sahara conduct some sort of a survey to assess these emerging regional
markets within India or just went ahead to fulfill desires of the top bosses
of the company? Yes, we did carry out several surveys on regional markets
and their growth potential. For example, government subsidies to rural and semi-urban
areas amounted to almost Rs. 40 billion few years back, which makes for huge amount
of investible surplus in these areas. Thats the type of revenue support
any sort of activity is likely to get there. Our surveys also told us
that consumer products were increasingly targeting such areas as urban markets
got saturated. Beyond a point there isnt much investible surplus in metros
and bigger cities of India. Newspapers spotted this earlier than the electronic
medium and started targeting readers in smaller towns and cities in local languages.
I would also put my neck out and say in todays time, there arent
very many national newspapers. Most target smaller groups or markets and from
there they make money. Why is it that Times of India in Mumbai has supplements
for various regions of Mumbai and a Hindustan Times has similar fare for areas
around Delhi? Simply because these newspapers realized early there is an opportunity
to target advertising at a very local level. In way, Id also say that Hindi
television news market leader Aaj Tak partly rode this trend initially to attract
small time advertisers at low rates. The basics are simple: cater to regional
aspirations. | | | Has
Sahara Samay channels got its act right by hitting upon the correct permutation
and combination of news content and packaging? I agree its a matter
of content strategy and we have learnt a lot over these years. However, learning
is a continuous process and we constantly keep on changing according to the needs
of the regional audiences. That our larger outlook was correct is proven by the
fact that even market leaders are now launching city-specific channels or are
exploring the possibilities. I would also agree that our learning curve
has been long, but better late than never. We recently appointed marketing personnel
for some untapped parts of Uttar Pradesh and in the very fist month the ad sales
collection was so encouraging that our marketing team is confident of doubling
it the next month. This is just to give an example of the type of response that
we are getting in Uttar Pradesh for our channels. | | | Where
do these regional channels of Sahara stand in the ratings heap? If
you just take a particular state in which we operate, then we are successfully
competing with Hindi language national news channels like Aaj Tak, Star News,
Zee News, etc. in that particular state market. At times, we have also beaten
them in the local game. But if you compare Sahara Samay UP at an all-India level,
for example, it would not cause even a blip. But that would be a wrong comparison
because that channel is only distributed in the state of Uttar Pradesh. So
our aim is to present to advertisers regional platforms through content packaging
that satiates the local needs of audiences in a particular market. Today, hardly
any local press conference is started in the states of our operation without our
presence. It may sound as if I am blowing my own trumpet, but its also a
matter of pride and realization that our state-specific channels are important
enough for people residing in those states and its smaller towns and cities. |
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'Our
present and prime focus is on the regional channels as we feel they can surge
ahead faster' |
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What improvisation was made on the content side to build up a loyal regional audience?
The mantra is simple: go local and more local. More our news channels talk
about and pick up local issues, more the audience we get. For example, a viewer
may get to hear that freak floods are created havoc in the desert state of Rajasthan
from a national channel, but will switch to our local channel to know more about
his or her own locality and area. I am also told that police stations in smaller
towns keep tuned in to our channels to track untoward incidents in their areas
of jurisdiction like an employee of a very big company would turn to an in-house
journal to know about the daily happenings. Lets take the city of
Lucknow in Uttar Pradesh. No national news channel would have more than two reporters
and an equal number of camera units to cover the city, but we have 10 reporters
routinely fanning out in the city looking for developments and news. When a big
development takes place, Sahara Samay Rashtriya (the national news channel) may
air the story for a couple of minutes, but our local channel would cash in on
that further and devote more time for the viewers benefit. Now,
if we are able to offer advertisers such dedicated and loyal viewership, revenue
is bound to flow in. | | |
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seems Saharas philosophy is to cover small town news through a down market
product. Would you agree? Thats an urban or a big city perception.
From our point of view, its coverage of even the smallest of news in an
up market fashion. After all, our technology and equipment are second to none,
if not better. We talk to small town audiences in a language that they understand
and present a look that they can relate to. From Delhi or Mumbais perspective,
it might be down market. Still, the revenues being generated tell a different
tale altogether. We are like the city news pages of a local newspaper.
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But wouldnt successful Hindi regional channels cannibalise the revenue potentials
of the national news channel of the company? Up to an extent thats
a fair assessment. However, for areas like Gujarat, rest of Maharashtra and Punjab
where we dont have state-specific news channels, we target the audience
through the national news channel. Mind you, all the places mentioned not only
bring revenues for other news channels, but also ratings. We have tried to create
a bouquet for advertisers for different needs. | | |
Would
I be correct in saying that the focus seems to be on the region-specific news
channels rather than the national channel? We had always hovered between
8-9 per cent of the market share with our national news channel. Even latest figures
reveal that we have managed to hang on to 8 per cent. But, as it happens with
any TV channel, there have been times when the market share of the national channel
had fallen well below six per cent. Still, you are right in saying that our present
focus is on the regional channels as we feel they can surge ahead faster. |
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'If
you take a particular state in which we operate, then we are successfully competing
with Hindi national news channels like Aaj Tak, Star News & Zee News' |
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With a market share of eight per cent, Sahara Samay Rashtriya must be languishing
at the bottom of the Hindi news channel heap. Well, our national channel
has been ahead of the likes of Channel7 (rechristened IBN7 after management takeover
by the TV18 Group), India TV and Doordarshan News. Thats small comfort,
but I feel over the next few months Sahara Samay Rashtriya should be increasing
its market share up to 9.5 per cent and then we would be certainly ahead of three
channels mentioned. A slackness had been witnessed, which is being corrected now.
The flip side, of course, is to aspire for the No. 1 slot. But we understand
ground realities and are not reaching for the moon. |
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The perception
about Sahara Samay news venture is that frequent structural and manpower changes
have impeded a smooth growth. Your comments. The slackness that I was talking
about was partly due to internal changes that have been happening, which, I feel,
should not be read out of context. Especially for an operation of this scale by
a corporate group that has diversified business interests (Sahara group is active
in the fields of small savings, airlines, real estate, entertainment and print
and electronic media). Ups and downs in any business are natural and Sahara
groups television news venture is not an exception. However, I dont
mind saying that our prime focus is on the city-specific channels as we feel thats
where the audience and money are. | |
| If
thats the case, then why not wind up the national news channel? Why
should we? Its not a white elephant and incremental costs are manageable.
Having a national channel, which is a by product of city-specific channels, also
helps us in creating inventories that can be sold. |
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What are the expansion plans for regional channels? We would be adding
more cities through time bands on our state-specific channels. Our target is to
have 60 bureaus throughout India. We will also get into other Indian languages
like Bengali with a news channel for West Bengal and surrounding areas. There
are plans to go to South India and Punjab too. We are in the business of (city-specific)
appointment news viewing and we will expand further between first and second quarter
of 2007. Presently, we are consolidating revenue-wise as far as city-specific
channels are concerned. We had not been able to adequately monetize our audience
base up till now, but a new marketing push is being given as response from advertisers
has been very encouraging. Our ad revenue has increased almost three-fold in the
last six months compared to the corresponding period a year ago. I can also add
that most big brands now are either on board or in the process of being so.
Whats more, by December all the regional news channels from the Sahara
stable should break even. The UP channel is almost poised to break even ahead
of others. | |
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How much would have Sahara invested by now in its TV news project? I would
not be able to reveal those figure, but operational expenses of our news channels
is between RS 20-RS 25 million per channel per month. That is also because we
do a lot of cost optimization by sharing resources. However, a large investment
has gone into fixed assets like state-of-the-art studios and equipment. | | (RS
47=1US$) | | Photos
by SANJAY SHARMA/Indiapix Network | | Go
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