The Hindu Business Line : Programming, reach improve CNBC revenues

A PROGRAMMING mix that appeals to a wider audience and distribution reach to smaller cities are two factors that have pushed CNBC on an upward revenue curve.

The channel is poised to grow its revenues further primarily because its viewership base is growing, according to Mr Haresh Chawla, CEO, TV18. TV18 holds 90 per cent stake in CNBC.

"CNBC now has two set of viewers — the market watchers and financial intermediaries on the one hand and working adults. Both the categories of viewership are growing, though not at the same pace," Mr Chawla said.

"We decided to go in for a programming mix that is appealing to a wider audience. All of that effort is now playing out in terms of revenue growth," Mr Chawla said.

The channel decided to spruce up the evening line-up during the last quarter. Tonight at 10, a current affairs programme hosted by Karan Thapar, and Encounter, hosted by M. J. Akbar, have been added on as a measure of variety. Master Strokes hosted by Harsha Bogle is yet another addition meant to enhance viewing. Programming additions have brought aboard higher volumes of advertising. Currently, there are 300 brands on the channel.

This was evident in the first quarter of the current fiscal, as revenues of the TV18 group increased by 92 per cent to Rs 16.94 crore. This increase is a combination of volume growth of advertisements as well as higher rates. Operating margins moved up to 51 per cent from 35 per cent in the year-ago period. The performance of the company is expected to be better in the second quarter.

Overall, TV18's performance in the first quarter has received a boost primarily because of strong advertising growth as well as higher distribution revenue, Mr Chawla said.

He believes that there is more to leverage from the CNBC brand than what is being done at present. "We need to monetise our brand further," he said. Hence, CNBC is focusing on other markets besides equity markets.

"There is also a lot of activity on the bond markets; we are also developing the commodity market coverage. Besides, global news is also having a greater impact on our business coverage. We have been able to expand our focus into the international market scenario," Mr Chawla said.

While market volatility does help to bring in larger number of viewers on a business channel, CNBC has already found its established base of viewers, he believes.