Thursday, June 26, 2008

Oh baby, let’s hold hands!

A tiny wiff of consolidation in the air, but... After aviation, a hint of consolidation has appeared in TV channel space. With the idiot box swamped in a deluge of tiny, niche channels, marketers have hit a new way to club resources and benefit. Star India Pvt. Ltd. and Broadcast Initiatives Ltd. (of the Adhikari Brothers fame) have collaborated, so that the latter has leased out its ad sales function for Live Today, a Hindi news channel (earlier known as Janmat) to Star India. In as much, Star network which was earlier running distribution errands for channels like Disney and Hungama, has taken a leap forward by offering its formidable strength in ad sales to a channel outside the Star bouquet. Yashpal Khanna, Senior VP, Star Networks asserts: “This is a pilot project and the success or failure of it will decide our future alliances to share marketing assets. We plan to add Live Today to our existing ‘package’ of assorted channels.” The move will also help Star India expand into a profitable sub unit. For Broadcast Initiatives too, the deal is a win-win proposition, as it would help them gain an initial ad base, without incurring requisite marketing expenses. Tagging along with a big brother in the industry will get them ‘visibilty’ and ‘people’s expertise’, which the nascent media house couldn’t possibly attract on its own at this stage. “But, in the long run, it makes sense for Live Today to invest in setting up its own infrastructure,” suggests media analyst, Rajiv Tewari. Wonder where these baby steps of consolidation will ultimately lead...

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Source :
IIPM Editorial, 2008

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