The Hindu Business Line : More news may not be good news for channels

EXPECT more news. From Aaj Tak to NDTV and Sahara to Star, they are all launching news channels in the coming months. But experts caution that despite the growing appetite for news and news-based programming, there may not be room for so many players. Add super-specialisation, low channel loyalty, and big viewership only for unpredictable breaking news, and the news gets worse.

"So far, viewership and revenues have been rising, but if you crowd the space, then you'll kill the goose that lays the golden egg," says Mr Atul Phadnis, Director - S Group, TAM Media Research. Over the next few months, news channel launches are expected from NDTV (Hindi and English), Aaj Tak (English), Sahara (national and regional), the Dhoots (Hindi business), Star and Channel News Asia (English). Sahara alone plans to invest about Rs 600 crore, on a national channel and six regional channels by June, and up to 30 regional channels.

The good news first: since September 2001, news channels have registered a steady increase in revenue, which has grown faster than even viewership, according to TAM-AdEx. While viewership share of the six news channels recently surveyed climbed from 1.9 per cent to 3.7 per cent in the last 18 months, revenue share jumped from 8.6 per cent to 12.2 per cent. "The context has changed: world events and politics have become important to viewers," Mr Phadnis says.

Advertisers and media planners also have taken note, and the success of Aaj Tak is stoking enthusiasm for the category. "Earlier, news channels were used for incremental exposure to a small set of audience, but today they are used to derive incremental reach of a wider base," Mr Phadnis says. Advertisers have realised that news channels give them the widest reach and newer audiences at a low cost, he adds.

Currently, viewership is skewed to SEC A and B males over 25 years in c&s 4+ homes; there is also a marginal youth skew (15-24 years). The base of loyalists - i.e. people who spend at least five minutes per week viewing news channels - has also grown: according to TAM-AdEx, there were about 1 crore loyalists in April 2001, as compared to about 2.2 crore in September 2002. And, the average viewer spent 223 minutes watching news in December 2002, as compared to just 95 minutes in January 2001.

Besides, news is a "sticky" category: "Viewers are very involved - - especially during a major event, they are least likely to change channels," says Mr Ashish Bhasin, President, Initiative Media, Lowe's media buying agency.

Advertisers have been quick to respond: Spikes in viewership - during the September. 2001 WTC attacks, the Gujarat riots or the Akshardham siege - - have always been followed by a surge in ad spends. It is estimated that overall ad spend on news and news programming is close to Rs 300 crore, and will grow to Rs 500 crore in the next two or three years.

While the number of advertisers on TV actually fell in 2001, news channels welcomed 200 new advertisers: the number of advertisers went up from 504 in 2000 to 686 in 2001, according to TAM-AdEx. Last year, news channels added 100 advertisers. As viewership increases, more mass-based products will come on board in addition to the current crop of male-oriented products and services, Mr Bhasin says.

"Some products that have come on news channels would have considered it blasphemous to be there two years back - like toothbrushes, salt and hair conditioners, which have always chased the housewife on mass entertainment channels," Mr Phadnis says.

Still, there are challenges: With the increasing specialisation of news, only some categories will find viewers. Also, viewers are "light viewers," and not particularly channel-loyal, either. "They don't really care where their news comes from, and easily flip between channels," Mr Bhasin say. Besides, the channels have all relied on news, and not developed niches in content independent of news.

"There will be a shake-out - and the ones that are attached to larger channels or have a niche will survive," Mr Bhasin predicts. "Ultimately, it will depend on content."

That's the news for now.

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