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Discovery Channel
#1 Non-fiction media Industry 1985 - Founded by John Hendricks
Cable Educational Network Inc.
1987 Agreement with Mitsubishi Corporation to telecast programs in Japan 1990 Launched televisions first Interactive Video Discovery Interactive Library
Changed name to Discovery Communications Inc (DCI) 1994 Launched Programs into few other Asian countries
2002 worlds most widely distributed television brand, aired in over 155 countries with 700 million subscribers. 14 brands , 33 networks and 33 languages. 2010 - 1.5 billion Cumulative subscribers across 180 countries
Market Need
Need for Speciality Channel Infotainment Channel Parents worry about wrong influence of TV on their children
Discovering India
In 1995 Indian Television market was dominated by entertainment channels First channel to provide Infotainment Programs Programs related to nature; wildlife; science and technology in English Discovery Channel Animal Planet Discovery Travel and Living Discovery Science Discovery Turbo
Market Trends
Launch of specialty or niche channels, which achieve breakeven faster because of lower investments Near immediate broadcast of movies upon release pushing up content acquisition costs; switchback to the outright exclusive rights model from syndication model to improve viewership ratings but at a higher cost Overseas markets gaining importance as an additional source of revenues for Indian broadcasters
Market Growth
1992- 412000 Urban Households in India Nov 1992 1.3 million Households 1994 11.8 million out of 32.4 million households The Indian television industry, consisting of television distribution, advertising and content, has reported a compounded annual growth rate (CAGR) of ~13.8% over the period 2005-2009 increasing to Rs. 26,550 crore. 2011- 71 million out of 130 million homes. Growing at a robust rate of 8-10 % Growth of Channels to 960 in 2010 from 120 in 2003.
Revenues
Globally 1.5 billion Cumulative subscribers across 180 countries 79.5 million cumulative subscriber base in india Global Revenue is US $ 3.5 billion Asian Market Revenue is US $640 million Indian market account for 10-12 % of Asian market is US $ 69 million India only accounts for 2% of global sales Japan; India; Australia Largest market for DiscoveryAsia
MARKETING MIX
Product
Programs aired in India possess at least 10%culturally neutral content. Discovery channel was known for its nature and animal programming Offered programs based on non-fiction focusing on themes of history; popular science and knowledge about different countries in the world.
Promotional
Sponsoring inter school quiz programs Launching educator guide to help teachers use channel as an educational source. In 2002-conducted a contest for students -entered into tie up with Canon India Ltd -imaging contests in around 75 schools in 7 cities Discovery Exhibition -students watched the channels program Popular Mechanics for Kids -created things under teachers directions -tie up with Colgate Dental Cream
Discovery also came up with the novel concept of programming guides to provide information about Discovery programs for every quarter
Place
Distribution channel was through LCOs and DTHs Discovery entered into a joint venture with Sony Entertainment Television (Sony), known as SET Discovery, with an equity structure of 74:26 Discovery announced that it had launched a 24-hour feed in Tamil with its ties with Vijay TV
Price
Pay channel Revenue generation model : Advertising & Subscription at 90 : 10 250-280 crore of Ad revenue annually
SWOT ANALYSIS
STRENGTHS
Companys broad diversification Farsighted technological focus Talent pool Business of making video games-educational power of video games Association with established brands Content Programming India specific programs
WEAKNESSES
Technological focus excludes the less techsavvy demographic
No single shows that are big hit
OPPORTUNITIES
Educational media market Existing expansive online presence New era of HD Channels India is a Technological Hub; young nation with a thirst for knowledge.
THREATS
No longer the only provider of streaming content online Under declaration of Subscribers by LCOs
Economic
Liberalized Economy High Disposable Income of Consumers in a growing Economy. Dominating Economy in Asia-Pacific
Social
The customer base is divided across different regional languages. The concept of non fiction channel were new to the indian public.
Technological
The mode of distribution has to shift from analog to digital. Digitisation would also remove bandwidth constraints, facilitating carriage of a larger number of channels and thereby leading to rationalisation of carriage fees The requirement of large investments, to an extent, has slowed the progress of digitisation in the country. To fund the use of set-top boxes at the customer end and also to consolidate LCOs/ MSOs through buyouts
Market Demograhics
Six Time Bands introduced in August 2001 Sunrise( Weekdays 7am to 9 am) Discovery Kids ( weekdays 3pm to 4 pm) Action Zone (week days 4pm- 5pm; repeat at 11pm) Prime time (weekdays 8pm-11 pm) Friday showcase (9pm-11 pm) Super sundays( 7 am to midnight) Telecasts in Hindi & Regional Languages
New Strategies
April 2002 extended to 9 time bands Woman s Hour (weekdays from noon to 1 pm) Amazing Animals Late night Discovery Came up with Innovative Program "World Birth Day Launched India Hour ( Sundays) Launched Tech Tuesday
Change in Leadership
Deepak Shourie took over as MD of Discovery India by 2000. Realized Perception of consumers as niche channel airing programs on wildlife and nature. Market Research was conducted to understand perception. Population of Viewers consisted of urban males between 25-54 years. Around 60% of its viewership was from Sec-A and Sec-B Popular with kids and their parents.
Future Plans
Communicate the Sheer width and intense variety of programming on discovery.
Future plans, India: Expand into newer urban and semi-urban territories. Promote Animal Planet. Launch new lifestyle channel
Key Learning's
Adaptability of Discovery to suit the diverse customer base in India. Discovery ventured in to Niche channels which has become the Trend in a growing industry. Successful Brand Positioning done over a period of time.