[icernet] India: All News, All the Time

[Arul Selvan]

   Indians have long been known for their passionate interest in 
politics and world affairs. But starting in April, they'll be plugged 
into the global village as never before. At least four new domestic news 
channels -- double the current number -- are expected to be available 
that month to the 43 million households subscribing to cable TV. 
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The TV news explosion is partially triggered by the breakup of a 
five-year partnership between Rupert Murdoch's Star TV and Indian 
production company New Delhi Television (NDTV). Star pays NDTV $20 
million a year for newscasts in a contract that expires on Mar. 31. 
After that, Star plans to go it alone with a 24-hour, Hindi-language 
news channel. NDTV will in turn launch channels in English and Hindi. 
Around the same time, the Zee TV network and broadcaster Aaj Tak plan to 
start English cable-news channels -- just in time for a possible war in 
Iraq and elections in seven Indian states. TV set maker Videocon also 
wants to enter the fray.

The lure is one of the world's biggest future media markets. Some 200 
million Indians now watch cable, vs. 110 million four years ago, and 
subscriptions grew 40% last year, says UBS Warburg Securities (India) 
Research Director Sandeep Bhatia. Fees of just $3 a month for 75 
channels make cable affordable. News programs grab less than 3% of the 
$2 billion in advertising and subscription revenue in India. But news 
viewership has surged by 250% since the September 11 attacks. Annual ad 
spending on news shows has leapt from $8 million to $50 million in two 
years -- and should double by 2005, predicts Anurag Batra, managing 
director of exchange4media, a Web portal for the media industry.

To grab viewers' attention, broadcasters are opening their wallets to 
expand news operations and snare top talent. Star alone has hired 300 
reporters in the past six months from local newspapers and Hindi 
channels like Zee for its 21 bureaus across India. Rival NDTV bagged 
Star's top sales executive and has hired away news anchors and reporters 
from Aaj Tak's broadcast station. Monthly salaries for TV reporters have 
doubled, to about $1,250, in the past six months. Stodgy state-owned 
broadcaster Doordarshan, which reaches 400 million viewers, is sending 
its own reporters to the Middle East should war erupt. Exchange4media 
figures channels are pouring $100 million annually into studios, 
equipment, satellites, and staff. "Everybody is looking forward to the 
battle for the news," says Kunal Dasgupta, chief executive of Sony 
India, which will distribute NDTV's new channels. Not every channel is 
likely to survive. Analysts predict the field will consolidate and be 
led by Aaj Tak, Star, NDTV, and Zee.

Source:
http://www.businessweek.com/magazine/content/03_12/b3825115_mz033.htm