One Big Idea by NP Sathyamurthy: Bundling is the way forward for regional channels

18 Mar,2013

By NP Sathyamurthy, President & Head – Media, Mudra Max

 

If we look at the viewership pattern of the top one or two regional language channels, their viewership is fairly consistent. They have the opportunity to guarantee some GRPs, and then charge cost per rating point. That would find a lot of takers.

 

It is viable in regional language channels because they offer far more consistency in GRPs, than Hindi GEC at a broad level.

 

And in the process they are likely to get higher returns from investors. They can definitely demand more for an ad spot than they are doing now – if they offer a guarantee. If they adopt this approach, they can also sell their second-level programmes, which are not very high rated, but which are reasonably good. It would definitely work from the revenue perspective, and advertisers would be far more confident, if it is guaranteed. To put it simply, they would benefit in two ways – by getting higher revenues, and a higher share of the advertising pie.

 

The other option that networks have is to bundle in various language channels, and sell them as combination. Currently, they are all selling them as individual channels. For a number of advertisers a couple of markets in the South, Maharashtra and West Bengal are priority one markets. If they offer them as a bundle, they can get a higher share of the advertising pie at the cost of so-called national channels catering to Hindi-speaking markets.

 

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