Aaj Tak’ News Channel’s Success Story

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‘Aaj Tak’ News Channel’s Success Story:

‘Aaj Tak’ News Channel’s Success Story Submitted To : Prepared By : Dr. Vinit Mistri Anamika (1002) Manoj (1009) Rinkal (1010)

INTRODUCTION:

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

CONT…:

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:

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 – 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:

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:

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…:

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 group’s radio business Digital Platforms (Web & Wireless) To transfer TV Today’s and LMI’s digital assets to a separate company To look at consolidation of the digital assets in order to monetise the opportunity

SWOT Analysis:

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…:

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…:

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. Threats : High switching rate of viewer Reduction in rate of intelligent viewers Presenting news in filmy fashion is unacceptable to many viewers

Potter’s Five Forces Analysis:

Potter’s 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…:

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:

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…:

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…:

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:

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

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