Aaj Tak News Channels Success Story

Submitted To Prepared ClickVinitedit :Master subtitle style By : to Mistri Dr. Anamika (1002) Manoj Rinkal

(1009) (1010)

INTRODUCTION

Logo Parent Company Category Sector Tagline/ Slogan USP India Today Group News Channel Media and Entertainment Sabse Tez Fast News

CONT

Aaj Tak, a 24 hours Hindi news channel in India, was launched in December 2000. Since then, the channel has maintained its lead news segment. The case explores the reasons for in viewership in the success of Aaj Tak. It examines the background of the channel and the circumstances that led to its launch. The case also draws a comparison between Aaj Tak and its competitors such as Zee National, NDTV India (Hindi), Star News, and DD News Sahara Samay It also takes a look at the news channels market in India and at the future outlook of Aaj Tak.

ISSUES

Strategies adopted by a news channel to differentiate itself in a cluttered market Role of programming for success in crowded market Role of branding for success in a cluttered news channel market.

Aaj Tak Key Word Defined

"Aaj Tak redefined the whole concept of news which was hitherto the prerogative of Star and Zee."
- Satyajit Sen, head, media buying, Grey Worldwide

Aaj Tak in the past few months has achieved unqualified success and has also been able to carve a distinct niche for itself in the world of news. All brands that have advertised on Aaj Tak have benefitted. Apart from providing a reach that is significant, the channel has also been able to deliver quality audiences.
- Rajul Kulshreshtha, VP, Universal McCann

Critical Success Factors

Aaj Tak remains Number 1 even though the number 2 keeps changing Tez has complimented Aaj Tak and shows tremendous promise for the future Network Strategy helps in increasing the advertising rate

Growth Factors

Domestic

Exploring more profitable niche segments within the news genre Explore new formats such as Tez

International

Following success in the US exploring more markets with a sizeable Indian Diaspora Both Subscription and advertising revenue

Emergence of addressable distribution platforms

DTH IPTV

CONT

Subscription Revenue

Subscription Revenue will compliment advertising revenue both from domestic and international markets A family spends Rs 600 on a weekend in a multiplex. Why not pay for quality content for a month on TV ?

Radio

Acquire the groups radio business

Digital Platforms (Web & Wireless)

To transfer TV Todays and LMIs digital assets to a separate company

SWOT Analysis
Strength:

Though started as a programme called "Aaj Tak" on national TV soon turned out to start its own private channel Broad base of viewership Nationwide and fast coverage Distribute prizes to lucky viewers answering simple questions Claims to be #1 News channel in India for so many years

CONT
Weakness : Factual news and partial analysis Accused of serving news as entertainment many a times Consequences of "NEWS" shown Sometimes biased analysis Sometimes News on 'instant' basis due to competition pressure Not focusing on various governmental schemes for common man on suo-motu basis Concept of breaking news is redefined

CONT
Opportunity :

Can prosper by using large base of viewership properly Should focus more on government's new programmes and schemes to educate viewers Need to come out of vicious cycle of what viewers want to see and what channel is offering. High switching rate of viewer Reduction in rate of intelligent viewers Presenting news in filmy fashion is unacceptable to many viewers

Threats :

Potters Five Forces Analysis

Barrier to entry : High to moderate, legislations and cost of research

and development High sunk cost, high capital requirement, difficult to access to distribution, steeper learning curve because of mature market.

CONT

Industry competition: High, advantage gained through technology

and marketing strategies. Highly fragmented industry high fixed cost, highly perishable products highly diversified rivals

Suppliers: Supplier power is low decreasing power of bargaining of

suppliers due to increase in number of content providers.

Bargaining Power : Bargaining Power of consumers are high

consumers can switch channels. Inceased in number of variety of channel due to globalization, availability of variety of alternative sources of entertainment

Substitutes: High like film industry, sports events cricket live

matches ,print media, internet

PESTEL Analysis

Political

In the early 1990s, the Government of India (GoI) allowed the entry of private channels into the entertainment software industry. Political interest increase because of the recognition of the media industry economic importance to the overall economic growth of the country.

CONT

Economic
Economic growth because of the corporate advertising spend in niche

areas also increased as companies could reach specific viewer segments through these channels. The growth of the industry is expected to grow by 16% in the current year ( 2-3% market share in television sector)

Social aspect :
The impact of intense media attention has brought about a more revolution

in the social aspect and created a society which is more enlightened and which appreciates the industry.

CONT

Technological advances
The technological advancement taking place in industry is high and this

calls for increased spending and research so as to be innovative in the industry.

Legal environment
Legislations such as anti-piracy laws have been enacted and the

government tries to enforce the fully even though it is difficult. Aaj Tak has to take legal action against Mumbai based newspaper called Khabrein Aaj

Competitors

Star News Times Now NDTV India Other regional news channels Internet Newspaper