AAJ TAK's News Channel's Success Story


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Case Details:

Case Code : BSTR097
Case Length : 14 Pages
Period : 2000 - 2004
Organization : TV - Today Network
Pub Date : 2004
Teaching Note : Available
Countries : India
Industry : Media and TV Software

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

A Note on News Channels

In the early 1990s, the Government of India (GoI) allowed the entry of private channels into the entertainment software industry. Since then, there has been a steady growth in the entertainment genre. Gradually, niche genres like Music, Sports, Kids, Movies (English, Hindi and regional languages) and News emerged.

In the early 2000s, there was growth in the news genre in terms of audience share and number of channels. According to TAM, the overall television audience share of news channels increased from 1.5 per cent in 2001 to 3 per cent in 2002. Similarly, the corporate advertising spend in niche areas also increased as companies could reach specific viewer segments through these channels...

Aaj Tak's Strategy

When Aaj Tak was launched, the television news market was already crowded, with Zee News and Star News occupying the top positions. Analysts felt that entering a crowded market would be a disadvantage for Aaj Tak.

According to Aaj Tak officials though, it was a major advantage, as they were able to observe what the competitors did and what their weaknesses were, and use this knowledge to their advantage. Aaj Tak also had the advantage of being part of a media group whose core competence was news gathering and reporting. TVTN, which ran the channel, had extensive experience in production of news and current affairs programs as it used to produce them for other channels, whereas STAR and ZEE had established themselves as entertainment channels and then moved on to news. According to TVTN, market research showed that there was scope for a 24-hour Hindi news channel...

Future Outlook

In the future when viewers have to pay for channels, they will choose only those they like the most. So, it is important for a channel to promote channel loyalty rather than program loyalty. ORG-MARG conducted a syndicated study on CAS and its impact on viewers, particularly how it would influence their choice of channels within each genre...

Exhibits

Exhibit I: The Indian Telly Awards 2002 Won By Aaj Tak
Exhibit II: TAM Ratings
Exhibit III: TAM Ratings

 

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