The Hindu Business Line : Greens change colour

While they began as conventional green channels, both Discovery and National Geographic have been broadbasing content beyond wildlife and nature. But is the strategy paying off? Catalyst finds out.

THE Afghan Girl, Spy Gadgets, Inca Mummies, Top Secret Beaches, Egypt: Secret Chambers, Romantic Escapes, Body Chemistry, Scaling of Mount K2, the Pearl Harbor attack. If that doesn't resemble the typical nature and environment-centric Discovery and National Geographic you knew even six months ago, you probably haven't tuned in right.

Take Discovery. While the channel has been working at broadbasing its content for a while now, the change gathered pace only from this April. No coincidence then that immediate rival National Geographic Channel (NGC) also began broadbasing its programming mix around the same time.

The reasons are not too hard to find.

Concedes Deepak Shourie, Managing Director, Discovery Communications India, "Yes, Discovery has been known in the past for wildlife, nature and kids programming. And while the channel has not de-emphasised nature, we are opening our mind. Broadbasing our target viewers brings in advertisers who want to reach wider audiences effectively in a cluttered environment. Since we have the resources to leverage from our international content, why not?"

Zubin Gandevia, Managing Director, National Geographic Channel

Observes Zubin Gandevia, Managing Director, National Geographic Channel, "While programming based on the conservation of the environment is integral to us, the channel is really the media arm of the National Geographic Society which was set up with the mission of increasing and diffusing geographic knowledge."

Gandevia points out that while natural history will `always be NGC's stronghold', the channel has increased its offering to other genres over the last 18 months to appeal to wider audiences. "We do not see ourselves as a green channel. We have added a wider range of genres comprising adventure, science, technology, and people and places. The move has been well received by both viewers and advertisers.''

However, the fine print suggests otherwise. Media planners point out that the broadbasing exercise is essentially to survive in tough market conditions. As Praveen Kumar, who heads the Delhi-based media tracking outfit, Current Opinion and Future Trends (COFT), points out, both channels are facing difficulties in attracting advertisers in large numbers. "Niche channels such as these are up against stiff competition from not only general channels but also from other speciality channels which fit into other categories such as Cartoon Network. Such channels will have to depend more on subscription fee than on advertising for generating revenues."

According to available industry data, niche channels such as these continue to be way behind the advertising that regular entertainment channels attract. Industry estimates suggest that the cable and satellite advertising market is split in favour of entertainment channels attracting 79 per cent advertising, followed by sports channels at nine per cent, international channels such as Discovery and National Geographic accounting for about seven per cent, and news channels making up for the remaining five per cent.

All the same, the channels claim that their moves are paying off the required dividends.

NGC says that its recent non-nature programming winners include the Find of the Afghan Girl, the Inca Mummies documentary traced in the shantytown of Peru, and Secrets from inside Egypt's pyramids of Khufu.

As for Discovery, nature and environment-based content accounts for 25 per cent of the channel's programming mix now, against almost double that of last year. Take `late night' Discovery, the channel's adult programming mix which focuses on beauty, sex, aviation technology, supernatural science, and more. Shourie explains that the idea is to tap focused adult audiences `when soaps end at 10 pm'. Discovery Kids and health capsules are also among the better received shows, he adds.

Nature and wildlife content will continue to account for 25-30 per cent of the channel's programming mix. "We will keep going back to our library to address diverse viewership needs," says Shourie. Meanwhile, the channel has begun the process of acquiring content from India and is currently in talks with independent production houses.

Claiming a `satisfactory mix of content,' Shourie says that the reactions to the changes the channel has made is a clear indication that it is on the right track. While Discovery's first time advertisers include names such as Toyota, Motorola, AT&T, Canon, Adidas, ABN Amro and Western Union, advertisers such as Hindustan Lever and Procter & Gamble have come aboard after a hiatus of three years. Sanjay Raina, Associate Director, Marketing, Discovery Communications, points out that 209 brands have already advertised in the channel this year. "We expect to end the current year with 30 per cent more brands than last year in terms of advertising," says Raina.

While Shourie refuses to divulge absolute numbers in terms of ad revenues, he maintains that the channel is making money and that operating costs have been brought down.

And according to Gandevia, NGC has over 10 properties for sponsorship, all of which are sponsored. Besides Toyota and Volvo which are the channel's global sponsors, NGC's current basket of advertisers include ABN Amro, Colgate, ICICI Prudential, Hyundai, LG Electronics, Samsung, Pepsi, Coca-Cola, Raymond and Bridgestone. NGC claims a 40 per cent increase in revenues last year and similar projections are expected this year as well. "The strategic tie-up with Star TV has been win-win for both of us, since it allows NGC to tap into Star's resources in distribution, broadcasting and ad sales,'' says Gandevia.

In terms of reach, Discovery currently reaches 24 million households, and according to Shourie, the SET-Discovery alliance is meeting its number. NGC, on the other hand, comes second with a reach of 22 million households. According to Gandevia, NGC's viewership has grown by 200 per cent over the last two years.

While viewership bases are growing, big-time profits are some time away, say media planners. Meanwhile, the charge of the green brigade does not show signs of receding.

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