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The problem with new GECs it seems is that they are not offering any differentiated programming. As SAB’s Anooj puts it, “Their programming is like the Amar, Akbar and Anthony programming. They pick a little bit of everything from every channel.” Unfortunately, this shortcut isn’t long-lasting. The only way forward for these new channels is to offer differentiated content. “They can get into offering content of just one genre - maybe like a channel with only thriller shows or only comedy et al. Copying will only destine them to doom,” says a media analyst.

So will these new GECs survive or shut shop? “A lot of them are going to be out of business. Because it’s a big boys game,” feels a confident Kunal Dasgupta, CEO, Sony Entertainment Television. Star Network’s spokesperson Yash Khanna avers similar. “It’s easy to grab audience attention when a channel is launched, but it’s difficult to sustain that attention over a long period. That’s their challenge,” he quips.

But Star and Zee should not become too complacent either. While 9X and NDTV Imagine’s launch did not hurt their respective channel share much, the coming of Viacom-18’s Colors has ruffled their feathers some. The share is no longer being pruned from Sony alone. August saw Star’s share come down 6% over last month to 26%, while Zee’s share fell 2% to sit perched at 15% in the month (source: aMap).

Given that Anil Ambani’s Big entertainment is also all set to to debut on the Indian teletube by the end of this year, Rajesh Sawhney’s (CEO, Big Entertainment) words may be prophetic. “You need not only sharply define your target audience but also your programming… One should really not have Ramayan and reality shows on one platform.” Big plans to launch four to five entertainment channels targeting different genres within entertainment, of which two are scheduled to go on air by December this year. Adds a confident Rajesh, “No point in copying others. We don’t believe in the Balaji model. The paradigm will change soon.”

Clearly, audiences are becoming restless and channels need to wake up and smell the coffee. Disruptive programming could be the key for the future as Sony’s Kunal asserts, “I think by next year long running soaps will be dead… That’s tougher as we need to come with short burst programming then. People want a story in 26 episodes.” It’s this disruptive programming that has kept Sony in this race despite nimbler competition from new GECs. Their clutter-bursting programming – Indian Idol, Jassi Jaisi, Big Boss, Dus Ka Dum – made audiences return, allowing Sony to cling to the number three crown.

So long as Kunal Dasgupta continues with this creative destruction strategy, disrupting Sony will be a tough askance. But then, Reliance has a habit of breaking the mould in every business it enters. Anil Ambani will want to reach the numero uno position quickly and the first hurdle to topple will be Sony. Are you listening Sony, 9X, Colors, NDTV Imagine etc etc etc?

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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