Telugu Channels

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Regional electronic media seems to have suddenly become a hot business option. Andhra Pradesh, which has the largest cable penetration, is witnessing an influx of new channels. Five new 24-hour news channels will go on air this year.
First among the soon-to-be-launched are NTV and TV5, promoted by Narendranath Chowdhary and B.R. Naidu, respectively. Chowdhary will invest Rs 20 crore and has roped in S.R. Ramanujan, the man behind ETV’s successive launch of 11 entertainment channels. On the other hand, TV5’s Naidu has hired I. Satyanarayana, from Vissa Television. Satyanarayana had earlier worked with ETV as a news coordinator.
While NTV and TV5 are gearing up for the launch, others — VTV, promoted by a group of NRIs, Hyderabad TV, promoted by small-time politician Malepalli Lakshmaiah and Telengana TV, promoted by political group TRS — are still in formative days.It is the lure of ad revenues that drives investment to regional electronic media. A 10 second slot (Rs 300) with an average eight-minute commercial break in a 30-minute news spread would fetch a cool Rs 25 crore annually. And if alternative advertisement sources — scrolls, tariff increase during peak hours, etc. are counted, annual revenues would cover most of the capital investment. Apparently, promoters can also gain instant recognition. The channel line-up in Andhra reflects the increasing interest among politicians to own their own channels.
Meanwhile, to ward off competition, TV9 decided to launch three more channels — music, cultural and entertainment — for the Telugu audience. “We are investing Rs 550 crore for this massive expansion,” says Ravi Prakash, CEO, TV9. The channel intends to consolidate its position blocking prime bands with cable distributors. “Unless the channel is leading, you end up paying exorbitant amounts for distribution,” says Prakash. For instance, Zee Telugu and Maa TV pay about Rs 10 lakh per month for distribution in Hyderabad alone. Three more channels from TV9 bouquet implies that forthcoming channels such as TV5 and NTV will have a tough time coping up with cable distributors.
All said, none of the existing players are perturbed by the impending launch of channels and the likely price war they can create. “Even if TV9 and the new channels compromise with rate cards, we will be left unscathed,” says a senior official from ETV2.