aaj tak’ news channel’s success story

8/3/2019 Aaj Tak News Channels Success Story

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Aaj Tak News Channels Success Story

Submitted To : Prepared By :Dr. Vinit Mistri Anamika (1002)

Manoj (1009)

Rinkal (1010)


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INTRODUCTION

Logo

Parent Company India Today Group

Category News Channel Sector Media and Entertainment Tagline/ Slogan Sabse Tez USP Fast News


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CONT

Aaj Tak, a 24 hours Hindi news channel in India, was launchedin December 2000. Since then, the channel has maintained itslead news segment. The case explores the reasons for inviewership in the success of Aaj Tak.

It examines the background of the channel and thecircumstances that led to its launch. The case also draws acomparison between Aaj Tak and its competitors such as Zee

National, NDTV India (Hindi), Star News, and DD NewsSahara Samay

It also takes a look at the news channels market in India and atthe future outlook of Aaj Tak.


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ISSUES

Strategies adopted by a news channel to differentiate itself in acluttered market

Role of programming for success in crowded market Role of branding for success in a cluttered news channel

market.


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Aaj Tak Key Word Defined

"Aaj Tak redefined the whole concept of news which washitherto the prerogative of Star and Zee."

- Satyajit Sen, head, media buying, Grey Worldwide

Aaj Tak in the past few months has achieved unqualified successand has also been able to carve a distinct niche for itself in theworld of news. All brands that have advertised on Aaj Tak havebenefitted. Apart from providing a reach that is significant, thechannel has also been able to deliver quality audiences.

- Rajul Kulshreshtha, VP, Universal McCann


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Critical Success Factors

Aaj Tak remains Number 1 even though the number 2 keepschanging

Tez has complimented Aaj Tak and shows tremendous promisefor the future

Network Strategy helps in increasing the advertising rate


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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


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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


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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


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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


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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


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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.


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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 ofsuppliers 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


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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.


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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.


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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


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aaj tak’ news channel’s success story

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