The Hindu Business Line : News channels scene hotting up in South

FOR broadcasters, the South is sizzling. Competition among broadcasters is hotting up with several regional news channels set to go on air in the forthcoming months.

Consider this: At least three Telugu news channels — one each from the Sun Group-owned Teja stable, Hyderabad-based MAA TV and Raj TV's Vissa News are being launched. The Karnataka market will witness the launch of a channel by TV 9 while Jaya TV, which has received Government approvals, is also believed to be waiting in the wings.

These channels will be in addition to the existing Sun News, Udaya News, Surya News, Asianet News, Eenadu Group's ETV 2 and a Telugu news channel by TV 9.

According to media planners, the potential of the southern markets is huge. "Bouyed by the success of the Hindi news channels, the broadcasters in the South also feel that the regional news genre could be expanded," said a Delhi-based media planner. AdEx India pegs the news channels market at about Rs 400 crore, which has been growing at a healthy 40-50 per cent.

"The South is a large enough market for broadcasters to launch regional news channels. In fact, in the general entertainment front, the Sun Group started making profits even before Star did. People watch more TV there and the cable penetration is also very high. On the advertising front, even if the regional language news channels get advertising in the same proportion as the entertainment channels do, they would be able to make money," said Mr Sandip Tarkas, CEO, Media Direction, part of RK Swamy/BBDO.

"Generally male and upscale viewers watch news channels and the patterns should be similar at the regional levels too. Also, it is important for bouquets to have news channels, as these are generally easily acceptable by the cable operator. It also gives an opportunity for cross-promotions between general entertainment and news channels," added Mr Atul Phadnis, Vice-President, Tam India.

However, while the Hindi belt covers a large number of States in the North, the fourth southern States have very clearly differentiated languages. "If one looked at the advertising trends, the local economy and the retailing industry are big spenders on regional channels. Hence, unlike the mainstream Hindi news channels, which attract national brands, these channels can sustain on a local advertising. The South has huge revenue potential," said Mr Phadnis.

And may be that's the reason why broadcasters such as the Star Group which plans to launch several channels and Viacom which is in talks to buy-out SS Music channel are bullish about this market.