The MTV - Channel [V] Rivalry in India
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Case Details:
Case Code : BSTR038
Case Length : 15 Pages
Period : 1991 - 2002
Organization : Channel [V], Music Television (MTV)
Pub Date : 2002
Teaching Note :Not Available
Countries : India
Industry : Media & Entertainment
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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EXCERPTS
The Bout: Round I, Mtv's Struggle to Gain a Foothold
By the time MTV re-entered India, Channel [V] had established itself rather well and was the market leader. Commenting on Channel [V] becoming popular in MTV's absence, Peter Jamison, the then in-charge of MTV Asia commented, "I feel like the father who went to war and has come back to discover that his place in the family has been taken by another man."
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During July 1995-June 1996, Channel [V]'s earnings from India were estimated at Rs 245 million . This was almost 94% of its total global advertising revenues of $ 8.5 million. Its programs such as Videocon Flashback (based on old Hindi film songs) were successful in luring the whole family to the channel. However, analysts noted that they failed to attract young audiences who were intended to be original target of the channel. Noticing that, MTV initially announced that it would not produce programs based on Hindi movies and that it would keep 'local' programming to the minimum. Sahgal said, "Our offerings will primarily be pure Western music and there will be little spillage: that should work with advertisers..."
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The Bout: Round II, Mtv on the Offensive
Taking into consideration Channel [V]'s growing popularity, MTV was forced to announce a strategic shift in its programing mix and started airing Hindi film based programs in 1997.
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However, MTV sources rejected this stand stating, "Our conclusions were not based on Channel [V]'s performance. MTV's makeover was based on market research, which made us realize the popularity of film music and dance. And we could not ignore that." Besides the change in the programming mix, MTV brought in new VJs including Cyrus Broacha, Nikhil Chinappa and Shenaz Treasurywalla.
MTV also lured away one of Channel [V]'s popular VJs, Raageshwari, who hosted its first Hindi program, a countdown show 'Ek Do Teen' (One, Two, Three). The show was pitted directly against Channel [V]'s countdown show, BPL Oye!, which was broadcast on the same day at the same time... |
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