Discovery Channel - Discovering India

Details

Themes : Differentiation
Period : 1995-2003
Organization : Discovery Channel, Sony Entertainment Channel
Pub Date : 2003
Countries : India
Industry : Media and Entertainment

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Case Code : MKTG052
Case Length : 10 Pages
Price: Rs. 300;

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Consolidating the Presence Contd...

Commenting on the joint venture, Shantonu Aditya, Head (Distribution), SET India, said, "With Discovery joining our existing bouquet of channels, the One Alliance partnership,¹⁸ announced earlier this year, is in place to offer viewers an enhanced genre of programming supported by combined distributed strength. We are now strategically positioned to be the No 1 television network in the country." According to reports, the alliance would help Discovery increase its reach from around 21 million homes (in 2002) to around 28 million homes.

Discovering the Future

Through its alliance with Sony for distribution and marketing, Discovery announced that it expected to gain a 50% increase in both advertising and subscription revenues. The channel announced that in the year 2002 around 330 brands had advertised on the channel and that the channel had registered a 50% increase in ad revenues. According to analysts, Discovery's decision to air programs on the basis of viewership patterns helped it attract advertisers.

In order to consolidate its position, in January 2003, Discovery announced the launch of a new series The Blue Planet, which explored under water life. This program was co-produced with BBC and it took 5 years to complete the series at a cost of around 7 million pounds. Along with Blue Planet, Discovery also announced the launch of new programs such as, Special on World War II, Bismarck, Great Romances of the 20th Century, and Kitchen Chemistry etc.

Discovery also announced the launch of a new program series in January 2003, featuring around 18 films made by world-renowned producers. The films would be aired in April, May and June 2003. Some of films to be aired were, Great Cats of India, Himalayas - Descending India, Immortal Capital - Many Cities of Delhi, Arthur C. Clark's Mysterious India, Konarak - Chariot of the Sun, Wild and Dangerous and Buddha's Mountain Wilderness.

However, analysts were skeptical about the channel's future in India. They felt that with even NGC announcing that it would air new non-wildlife programs on its channel, it would be very difficult for Discovery to increase viewership. Discovery also faced stiff competition from specialty channels such as Cartoon Network, CNBC and CNN, which, though they offered a different genre of programs, attracted viewers to their channels. Will Discovery garner more revenues and increase its viewership base in India? Only time will tell.

Exhibits

Exhibit I: National Geographic Channel
Exhibit II: Discovery Consumer Products Division
Exhibit III: Discovery India Time Bands
Exhibit IV: Discovery Channel TVC

18] The One Alliance brand consisted of a bouquet of six channels, including Sony, Sony Max, AXN, Discovery, CNBC and Animal Planet, for Rs 40 per subscriber.