Colors Tv Report

Colors TV Channel – Study of Marketing Strategy Presented By: Group 2 Gourav Dokania – 10P078 Rahul Kaushal – 10P100 Saaransh Malani – 10P106 Shalabh Arora – 10P109 Shivi Goel -10P112 Tisa Annie Paul – 10P117 Vivek Mogili – 10P120 Contents Introduction:3 Television environment: a brief study4 Marketing environment:4 The Genesis – The Launch and its effects7 The Silver Lining10 MARKET ENTRY STRATEGIES OF COLORS (PRE-LAUNCH)10 PROMOTION STRATEGIES for the launch:12 Analysing Colors based on marketing framework15 SWOT Analysis:17 Marketing Mix:18 Analyzing consumer behavior and developing targeting strategies:19 ADVERTISING POLICIES21 AD rates and Sources of Revenues:22 DISTRIBUTION POLICIES OF COLORS23 Pricing Policy24 INTERNATIONAL FORAY24 Areas of concern:25 Introduction: As part of our second project in Marketing Planning course, we would like to present a comprehensive study regarding the Colors TV channel. As part of the study, we would like to cover the following points: 1. The marketing environment revolving around TV channels in general This is divided into three parts during the course of the report: †¢ Pre-liberalization environment The immediate post-liberalization phase †¢ The environment preceding the launch of Colors channel †¢ The present marketing environment 2. The consumer target segment and their behaviour during the above phases 3. The launch strategies followed by Colors TV 4. The analysis of Colors TV channel based on various marketing frameworks Below are the frameworks, we would like to base our study on: †¢ SWOT analysis †¢ 5 C’s framework 5. The product and marketing strategies followed by the channel 6. The segmentation, targeting and positioning strategies as applicable. The study and analysis is backed by an online survey 7. The pricing policies taking into account the revenue model and AD rates 8. The distribution policies followed by the channel 9. Recommendations and conclusions Television environment: a brief study We will start our study by briefly explaining what we mean by a marketing environment and will then proceed to study the marketing environment of TV channels as discussed in the phases above. We will specifically focus our study in Hindi General Entertainment Channels. Marketing environment: A marketing environment consists of actors and forces outside the organization that affect management’s ability to build and maintain relationships with target customers. Two kinds of classification can be made: †¢ Microenvironment: actors close to the companies that affect its ability to serve its customers. †¢ Macroenvironment: larger societal forces that affect the microenvironment. Two points are worth noting at this stage: †¢ Studying the environment allows marketers to take advantage of opportunities as well as to combat threats. †¢ Marketing intelligence and research are used to collect information about the environment. Doordarshan era: Indian small screen programming started majorly in the early 1980s. At that time there was only one national channel Doordarshan, which was government owned. By the late 1980s more and more people started to own television sets. Though there was a single channel, television programming had reached saturation. Hence the government opened up another channel which had part national programming and part regional. This channel was known as DD 2 later DD Metro. Both channels were broadcast terrestrially. Liberalization era: In 1992, the government liberated the industry by opening them up to cable television. Five new channels belonging to the Hong Kong-based STAR TV gave Indians a fresh breath of life. MTV, STAR Plus, Star Movies, BBC, Prime Sports and STAR Chinese Channel were the 5 channels. Zee TV was the first private owned Indian channel to broadcast over cable. A few years later CNN, Discovery Channel and National Geographic Channel made their foray into India. Star expanded its bouquet introducing STAR World, STAR Sports, ESPN, Channel V and STAR Gold. Regional channels flourished along with a multitude of Hindi channels and a few English channels. By 2001 HBO and History Channel were the other international channels to enter India. By 1999–2003, other international channels such as Nickelodeon, Cartoon Network, VH1, Disney and Toon Disney came into foray. In 2003 news channels started to boom. The most recent channels that have come up are UTV Movies, UTV Bindass, Zoom, Colours, 9X and 9XM. The growth post-liberalization: Starting with 41 sets in 1962 and one channel, by 1991 TV in India covered more than 70 million homes giving a viewing population of more than 400 million individuals through more than 100 channels. As per the TAM Annual Universe Update – 2010, India now has over 134 million households (out of 223 million) with television sets, of which over 103 million have access to Cable TV or Satellite TV, including 20 million households are DTH subscribers. In Urban India, 85% of all households have a TV and over 70% of all households have access to Satellite, Cable or DTH services. TV owning households have been growing at between 8-10%, while growth in Satellite/Cable homes exceeded 15% and DTH subscribers grew 28% over 2009. It is also estimated that India now has over 500 TV channels covering all the main languages spoken in the nation. A cursory glance at the TV offerings show the kind of diversity that Indian society has –channels for not just different languages, but also serving different niches within the broad umbrella of entertainment, spirituality, news, music & movies. The volatile tastes of India’s TV audience leads to ratings volatility and viewership fragmentation which can put pressure on ad rates, as ad volumes and rates are unlikely to move up simultaneously. Rising ad volumes will dent ad rates; hence, incumbents could see slower top-line growth. In addition we have analyzed the following factors – 1) Lack of entry barriers bringing new competition The pace at which channels are being launched is alarming and indicates the lack of significant entry barriers in television, compared to the stickiness of other media, such as print, where persuading readers to switch to another paper is not as easy as flipping channels. General entertainment channels command a 40% share of the total advertisement pie and have an estimated ad market size of US$1bn and have seen an increase in serious competition over the past few quarters, driven by new launches from entities funded by private equity investors and international media conglomerates 2) Building scale is critical, but could dent earnings momentum The entire broadcast sector wants to expand, as only companies with well-diversified exposure, a broad range of channels and control of strategic assets are well-positioned to fend off competition. This also ensures that advertisers are offered a spectrum of media choices, leading to growth through higher addressable ad volumes and reduced sensitivity to ad rates. This comes at a cost; however, as earnings performance deteriorates during the transition phase, when expansion TV18 is diversifying into unrelated assets, which could lead to significant losses in the initial phase due to lack of immediate synergies and the learning curve, required for reaching breakeven point. 3) Deviation in ad revenues as per the market conditions Research suggests a slowdown in economy directly affects the ad revenues being generated. While a worsening competitive environment, lower liquidity in financial markets and high interest rates can lead to a tough operating environment for broadcasters, we believe that strong market growth and pay revenue streams will ensure their survival of these channels in the near term. 4) Expect acceleration in organized pay revenues Expert estimate India’s organized subscriber base to expand at a 36% CAGR over the next three years, while the unorganized subscription pie is expected to witness a sharp contraction (-7% CAGR) due to ongoing efforts to switch customers onto the organized network. Subscription revenues directly add to profitability and should help broadcasters balance out margins pressure from competition and rising costs. The Genesis – The Launch and its effects Alliance formation between Network 18 Group and Viacom Inc. In May of 2007, the Network 18 Group and Viacom Inc, a New York-based global entertainment content company announced the creation of a 50:50 joint venture operation in India called Viacom 18. The strategic alliance includes television, film and digital media content across numerous brands to build India’s leading multi-platform entertainment company. Launch of Colors TV Channel In-spite of the tough competition and neither partner having any experience in operating a Hindi-language entertainment channel, Studio18, a new-age motion picture brand that produces, acquires and distributes Hindi films launched the Hindi General Entertainment Channel – COLORS on 21st June, 2008. Face Off Against a Decade Long Legacy of Star TV Colors TV Channel was the eleventh entrant into a market space that was already over-crowded and extremely competitive. Not only that, the battle for leadership in this market, which happened to be the Hindi general entertainment genre, the biggest segment in terms of both the viewership share as well as advertising revenue potential, on television had already been fought and won. The Hindi GEC space was dominated by Star plus, Zee and Sony. According to television audience measurement agency TAM Media research, four weeks prior to the launch of the channel, that is in June 2008, Star Plus was the clear leader with 351 GRPs, followed by Zee TV with 226 GRPs and Sony at number three with 102 GRPs. Intense Rivalry for the Second Spot Those at the middle and the bottom rung were not in a comfortable zone either. The other close rivals, Zee TV and Sony Entertainment Television, had been fighting tooth and nail to claim the number two slot but none could hold it for too long. Other New Entrants had Failed Most importantly, the industry response to some new entrants such as 9X and NDTV Imagine had not been too encouraging. And surprisingly, all other channels preceding and succeeding Colors had performed dismally. Colors’ immediate predecessor NDTV Imagine was far from breaking into the top three exclusive club and other new entrants such as 9X and Real, launched by Alva Brothers, of Miditech fame (the television content production company behind popular shows such as Roadies) and Turner International were struggling to keep themselves going. Colors TV Channel exceeded the general expectation setting new records Taking the above factors into account, Colors’ entry in this scenario did not seem like a sound business decision to most in the industry. Most industry watchers wrote it off even before they switched it on. The viewership ratings post-launch: [pic][pic] The viewership ratings after one year of launch [pic] [pic] ? Colors showed the maximum increase in viewership in the seven months preceding its launch. Its launch had expanded the GEC pie by 37%, maximum of which was taken by Colors as seen by the table below: [pic] ? Within 10 weeks Colors managed to gain more than 100 advertisers. The awareness transcended into unprecedented loyalty [pic] The Silver Lining In the past, it has taken a channel six to nine years to break even. Colors, according to the industry watchers, will be breaking even by end of 2010. MARKET ENTRY STRATEGIES OF COLORS (PRE-LAUNCH) 1) Colors – Jasbaat Ke Rang COLORS' is a positioned as a blend of 'emotions' and ‘variety', COLORS promises to offer an entire spectrum of emotions to the viewers that is well captured in its tagline – ‘Jasbaat Ke Rang'. The vibrant colours and leaf design used in the logo brought a new fresh perspective along with. 2) Use of existing network of Network 18 to market Colors Viacom 18 left no stone unturned to market Colors either. For a start, it made a smart use of Network 18’s news channels to cross promote the entertainment channel. 3) Not popularizing fiction shows before the launch To avoid confusing the viewer, it also cleverly pushed only its high-wattage show, and Akshay Kumar. In contrast, 9x advertised all its fiction shows during its launch. Akshay Kumar actually worked almost like a brand ambassador for Colors without the channel really having to rope him in that role. The star’s face helped the channel cut through the clutter. ) Deploying the falling popularity of K serials They also benefited from Star Plus’ own lethargy towards taking quick action against the falling popularity of its K-serials (the family soaps produced by content production house Balaji Telefilms. Since the titles of most shows produced by the company began with letter, K, they were referred to as K-serials) 5) Offering of differentiated TV programs The iron was hot to be stroked. While the popularity of s aas-bahu serials had been falling, Colors came out with a fresh and diversified mix. At one hand was Indian version of Fear Factor hosted by Akshay Kumar and at the other hand was Balika Vadhu based on the female oppression in India. Then, mythological serials, coming after a huge break greatly attracted the viewers. Mothers who were hooked on the Saas-bahu serials started switching channels during the break to check on what stunts the ravishing girls were doing on a particular episode of Khatron Ke Khiladi. The tendency to sneak into Colors Channel gradually developed into a habit for these folks and soon most of them were hooked on to Colors for their daily dose of entertainment in the evening. ) Roping in celebrities like Akshay Kumar To be sure, every aspect of Colors’ launch, be it the distribution, marketing or content had been well thought through. The channel started with only four hours of original programming but it got a competent viewership driver in the form of Khatron Ke Khiladi (KKK), which was hosted by Bollywood hottie Akshay Kumar. Akshay Kum ar was at his prime at that time. Bringing him to the small screen was sure to bring in eyeballs. It was, therefore, a good programming strategy. 7) Different days and timing of airing the programs The reality show Fear Factor was actually aired in Weekdays. Colors’ content head Ashwini Yarde, formerly at Zee, says the channel took a major risk in introducing an action-packed, male-skewed reality show with Akshay Kumar (and 13 daring pretty young things) on weekdays between 10 and 11 pm. It experimented with reality on week days against the popular trend of airing such shows during weekends. Also, it went against the tide as the 10-11 pm slot was historically oriented towards women-centric serials such as Kahani Ghar Ghar Ki and Kyunki Saas Bhi Kabhi Bahu Thi. The shows in 7-10 pm band were targeted at kids and non-metros and then at 10pm, they had Fear Factor, which was targeted mainly at metro audience PROMOTION STRATEGIES for the launch: The launch of Colors has seen the most innovative and all-medium encompassing strategy, yet to be seen in this competitive and cluttered space. 1) Tie up with Mumbai Dabbawalas The team also tied up with the famous 250,000 dabbawallahs of Mumbai to plaster the channel’s and its various shows’ logos and snapshots on the tiffin boxes that are distributed among people across the city. 2) Tie up with Barista Lavazza They launched Khatron Ke Khiladi limited edition coffee in association retail chain Barista Lavazza. It was for the first time, a television channel had done such exciting campaigns for itself. 3) Public Relations It was the massive public relations exercise that put Colors on the GEC map. The channel focused sharply on editorial support and ensured that it generated enough reports on the channel. For Bigg Boss, we picked newsmakers and the single-line brief was how these people should be able to move the coverage of Colors from the entertainment pages to the front pages of newspapers ) Real time viewer involvement In a bid to attract and retain viewer interest, GECs are increasingly letting viewers get more and more involved with their various offerings – from selecting the name of a show to deciding on the lead protagonist after a leap in time. Colors’ show ‘Balika Vadhu’ is set to take a time leap and the channel is letting the viewers decide on which of the three actresses shown should become the grown up Anandi, one of television’s most popular characters. Viewers can vote for the new Anandi via SMS. 5) Healthy replacements of programs When KKK went off air after 16 weeks, it was replaced by Bigg Boss, the â€Å"highly-controversial† (by design, say media experts) show hosted by Shilpa Shetty, which is averaging a healthy TVR of 2. 8. 6) Live Hoardings Live hoarding in 20 cities were run for three days to promote another big-ticket show Bigg Boss. 7) Planning to enter merchandising At present, advertising and subscription are the two main sources of revenue for the channel, but the team is contemplating an entry into the merchandising space within the next one year. ) To begin with, it has used all media such as TV, radio, print, websites, mobiles, movie theaters and outdoor for promoting the channel. It has placed  1300 hoardings and launched road shows  across the country. 9) For a more concentrated campaign,  3000 taxis in Mumbai and 2000 auto rickshaws  in small towns along with  local trains and school buses  have been painted with Colors brand. 10) Along with this 65000 ad spots are booked on TV while 15 million SMS have been send across all telecom operators. 11) At  Big Bazaar  stores, helpers and counter-guys are wearing  Colors T-shirts  and giving out information about the channel. 2) In  McDonald’s,  the Colors brand is present on the menu while Fear Factor Khataron Ke Khiladi merchandise is available at  Pantaloons  and McDonalds. 13) For program specific advertising,  Colors has tied up with ISKCON  for promoting its mythological show Jai Sri Krishna at all ISKCON temples. Also, 1000 temples across Hindi speaking states are being used to promote the show by putting banners on banner stalls and giving Krishna merchandise, literature and calendars. 14) For the show Mohe Rang De, Colors has chosen Punjab and Delhi to  organise street plays  as these plays were the maximum witness to freedom struggle. We can summarise the communication strategies based on the the 6 M’s Model of communication: Market General Public MissionTo generate Curiosity about the channel & shows MessageWatch Colors Media TV, Newspapers, Hoardings, Dabbawalas, SMS MoneySpent more than Rs. 50 crore on initial promotion Measurement Initial viewership The marketing and communication strategies seemed to be quite aggressive and innovative but ultimately it was the programming quality and show placement which established its positioning in the Indian television space. Analysing Colors based on marketing framework In this section, we would be looking after the strategizing, segmentation, targeting, positioning of Colors based on established marketing frameworks: 5 C’s of marketing: Collaborators: †¢ Colors channel is a joint venture operation in India between Viacom Inc. and Network18 Group. †¢ Colors, earlier a free to air (FTA) channel, has recently gone pay. †¢ Paid 5-10 % more than the others on cable distribution so that Colors sat between the prime channels †¢ MSM Discovery Private Limited (â€Å"MSMD†) is the designated agent to distribute Colors in India as part of the coveted â€Å"TheOneAlliance† (â€Å"TOA†) bouquet. †¢ IPL ties up with Colors Competitors: †¢ Major competitors: Star Plus, Zee and Sony †¢ Power in the hands of the cable operator †¢ Pay carriage fee to view a channel Company: †¢ Product lines : fiction, mythology, reality †¢ Image in the market: entered as a challenger, now leader †¢ Skills: innovative content, disruptive scheduling †¢ Goal: to be a profitable market leader Customers: †¢ Created thought provoking subject-based shows like Balika Vadhu, Uttaran and Na Ana Is Des Laado †¢ Reality shows with a difference like Khatron Ke Khiladi, Big Boss and now the latest BINGO †¢ Gives the viewers an expanded choice Scientific scheduling for eg: Balika Vadhu (multiple entry points) Context: †¢ Political issues: notice was sent to Colors Channel for allegedly portraying the character of a district magistrate in negative light in the serial. †¢ Social Issues: shocking scenes of a girl child being immersed in a big bowl of milk , created a social outburs t †¢ Extra working hours of the children SWOT Analysis: Strengths †¢ Shows from all walks of life †¢ A fresh outlook on everything New themes and Ideas Weakness †¢ Strong competitors †¢ A new channel with teething problems †¢ Trying to capture an already captivated part of audience Opportunity A lot of untapped market †¢ A new generation with different taste in TV †¢ Brand Loyalty in Indians Threats †¢ Failure †¢ Immediate acceptance †¢ Difficulty in looking for new grounds †¢ Copy Cats Marketing Mix: Product †¢ Innovative Daily soaps touching altogether different emotional buds of women viewers Price †¢ Prices offered to advertisers were very attractive as the channel got more than 100 advertisers within 2 months of its launch Place †¢ Viacom18 is said to have given away Rs 100 crore as carriage fee for a year to get the best band for its channel Promotion Innovative promotion Analyzing consumer behavior and developing targeting strategies: The TV consumer of today, unlike that of the Doordarshan era is exposed to various programs and content formats. With profusion of interactive social media, all kinds of TV shows, movies, user generated content, nation and culture specific content is available at a click. Again with increasing march towards a global economy, retail boom in the form of super markets, increasing foray of global brands and culture, the young consumer of today is vastly different from the old. They are more demanding, time-pressed, seek instant gratification and look for fresh content. IPTV is the future of TV industry. At the same time, any GEC cannot ignore the women-centric content and in a nation of diversity and high religious sensibilities, mythological content too is needed. We try to understand these and various other factors to understand the consumer behavior central to Colors in particular and Hindi GEC in general. TARGETING †¢ Identification of markets with unfulfilled needs and trying to tap them. Some examples include socially sensitive issues, mythology & saas-bahu serials with a difference †¢ Discovering segments on the basis of consumer characteristics and ascertaining their potential. Colors has very aptly identified the difference between ‘Bharat’ and ‘India’ and designed contents to appeal to both. †¢ Differentiating product offering from competitors – Colors has successfully offered and marketed differentiated content with intelligent scheduling. Also they have been very quick in striking deals with latest Bollywood movies. We will look at the differentiation strategy in detail in the following sections. Creating a distinctive positioning in the minds of consumers – A mixture of both program content and promotional strategies has really situated the brand as one appealing to both youth and the family and created an image of one with the freshest perspective. SEGMENTATION The various parameters on which the market can be segmented is : Age †¢ 15-24 years – They are the key viewers especially in single family households. Reality and youth shows have really appealed to this section. †¢ Lady of the house – She is attracted to fiction and afternoon slots are designed keeping their tastes in mind Urban/Rural Target Bharat – The target is skewed towards smaller towns with 7-9 pm slots. †¢ India – Metro-centric focus in slots of 9-10 pm. Product Offerings: Having the segment and their behavior in mind, let us look at the major product offerings clubbed under three heads: †¢ Fiction: eg. Balika Vadhu,Uttaran, Na aana iss des laado †¢ Reality shows: eg. Khatron ke Khiladi, Big boss, National Bingo night †¢ Mythology: Jai shri Krishna, Mahavir hanuman Differentiation: The following table list some factors which has helped Colors differentiate itself from the other GECs | Other channels |Colors | |Started with regular fiction shows |Yes |No | |Starte d with 2 reality shows with a bang |No |Yes | |Promoted only 1 show on launch |No |Yes (KKK) | |Brand Ambassador |Mostly No |Yes | |Started socially sensitive shows |No |Yes | |Reality shows on weekends |Yes |No | Positioning: Positioning is how the brand is situated in the perceptual space of the consumer. So it is their perception which is of paramount importance here and not the intended position. So to understand the positioning it was essential that we go to the consumers. We floated an online survey to understand the perception consumers have of various Hindi GECs across various parameters. But still to get the other perspective we list below some intended positioning factors driving Colors: ? Colors. An arbitrary name at first glance, this is a self-descriptive. The use of the plural form itself distinguishes itself as a general entertainment channel – one which caters to multiple audiences. This is further emphasized by its tagline ‘Jasbaat Ke Rang’ (The colours of emotion) – which promises the shows that will target the entire spectrum of viewers. ? The logo also provides some intended positioning insights. In every society yellow is associated with the sun – and hence optimism, warmth and happiness. Pink is youthful, fun and exciting. Purple, a mix of the passionate red and tranquil blue, evokes mystery, spirituality and sentimentality. The leaf motif, is a connection to earth and a acknowledgment of roots and natural origin. The Viacom 18 rejoinder at the bottom of the logo indicates an effort by the promoters to promote the parent brand (something they have not done with their other offerings: MTV, Nick and VH1). Usually the name of such an established parent adds to the credibility of the offering and in this case also reflects the aggression and pace with which the brand plans to march ahead. ? The tagline of the channel is ‘Jasbaat Ke Rang’ signifying the universal appeal of its programmes. ADVERTISING POLICIES After the product, its promotion and even the distribution has been put in place, comes the question of earning the bread and butter. In India, more than 80% of most television channels’ revenues come from advertising. Colors TV Channel was launched at a time when global economic downturn had already set in and it had begun to impact the Indian market as well. †¢ Advertisers had begun holding their purse strings tight. Yet, within weeks of its launch, the channel had most premium advertisers on board. †¢ One thing that the team at Colors responsible for raising advertising was clear about was: It would not sell its ad slots cheap even if it meant, not getting any advertising. †¢ To sell advertising inventory in the kind of market that C olors stepped in wasn’t easy. There were rivals who were ready to cut their rates to wean away advertisers and the economic scenario also wasn’t too encouraging. They had done their home work before they stepped into the market. They did a lot of number crunching, decided on some rates and held on to them. Demanding premium rates may have been rendered easier by the good work done by the channel’s content creation team. They actually went in with lower inventories and did not sign the deals till they got their price. AD rates and Sources of Revenues: In general, the AD rates for various TV News channels range from Rs 2,500 to Rs. 8,000 and for the popular shows on GECs like Star, Zee, Sony the range will be from 1. 5 to 3 lakhs. These rates are for a ten second slot and they vary too as per the volume, duration, past records of the media buying agencies and advertisers. But as we have seen in the discussion above, Colors so far has successfully commanded premium rates. †¢ Brands such as Garnier Men Deodorant, Vodafone, Micromax Mobiles, Tic Tac (from Italy's Ferrero Group) and Sony Bravia are riding on Khatron Ke Khiladi (KKK3)–a stunt reality show. †¢ Title sponsorship for high-decibel celebrity shows–such as Bigg Boss to be anchored by Salman Khan on Colors fetch '15-20 crore. †¢ Associate sponsorships for such shows are kept at 7-8 crore †¢ Celebrity backed reality shows command higher rates than soaps †¢ On average, a 10-second ad spot on a top-rated reality show sold for between Rs 2 lakh and Rs 3 lakh compared with the Rs 1-1. lakh a spot of similar length that's sold for a TV soap †¢ Another revenue earning mode in reality TV this year was in-branding of products in the shows. Networks usually charge a 200-300 per cent premium above regular advertising rates for product placements in reality shows. On offer are: passive product shots (with no interaction with the brand); an active placement (with limited interaction or activity around the brand); or a hyperactive placement (an aggressive use of product) in the show. Charges 5 to 10 lakhs DISTRIBUTION POLICIES OF COLORS As per a Delhi-based cable operator, â€Å"Distribution, in fact, is the most crucial element to the success of a television channel in today’s time,† says. A channel may have the best of content and it may burn a huge amount of money in promoting it, but if the channel doesn’t reach viewers, which means if the distribution is not in place, all these efforts will yield a naught. † Colors TV Channel has handled the distribution conundrum very well. Using its sharp distribution plan, Colors reached 36. 4 million viewers in its launch week. By end of 2009, Colors claims to have the maximum reach with 72. 5 million viewers in the GEC space . Promotional policies followed by Colors on its l aunch: †¢ It was an encrypted pay channel with a free-to-air window for first six months †¢ This was done to allow its viewers to sample it and be noticed Colors also distributed its channel by itself as gives them more flexibility in their operations. †¢ They planned to be seen in over 50 per cent of the cable homes from day one †¢ They were also to be present across the existing and the new direct-to-home (DTH) platforms. †¢ It was also encrypted on BizAsia. co. uk and hence increased its penetration throughout the world †¢ It is also available on Sky Digital channel 829. The channel in the UK and USA is being endorsed by Bollywood legend, Amitabh Bachchan. †¢ Viacom’s distribution strategy can be held to be 99 per cent responsible for the success of Colors. †¢ Colors have given away Rs 100 crore as carriage fee for a year to get the best band for its channel. Its budget was clearly much higher than the Rs 40-60 crore that NDTV Imagine and 9x reportedly invested in distribution. †¢ On 1st April, 2009, Colors’ became a paid channel, and its viewership fell. It lost market share from 298 GRPs to 292 but overall with a sustained rise in its share, it managed to beat Star Plus in the week ended 11 April, 2009 Pricing Policy 1. Colors charge around Rs21 each, excluding 10% service tax and it paid a hefty carriage fee of more than Rs90 crore to distributors when it was launched INTERNATIONAL FORAY †¢ On 21 January 2010, Colors became available on Dish Network in the US, where it is called Aapka Colors (Respectfully your Colors) because of a clash with Colours TV. Amitabh Bachchan served as brand ambassador for the UK and USA launches. †¢ Colors launched in the United Kingdom and Ireland on Sky on 25 January 2010. On 9 December 2009, INX Media confirmed that Colors had bought 9XM's Sky EPG slot on channel 829 and on 5 January 2010, Colors secured a deal to join the VIEWASIA subscription package. EPG tests began on 4 January 2010 using the 9XM stream, followed by Colors' own video and audio on 8 January. Initially the channel was available free-to-air and then subsequently was added to the VIEWASIA package on 19 April 2010. FIRST IN INTERNET TELEVISION †¢ â€Å"Colors† is the first ever global launch of an entertainment channel on IPTV. With colors, Viacom 18 has made its foray into the IPTV sector which will certainly be one of the biggest distribution mediums, with worldwide reach, in the near future. †¢ The launch has been made possible by a partnership between Viacom 18 and The New Media Group which owns â€Å"World-On- demand† IPTV platform. According to Sanjev Hiremath, Sr. Vice President, Network Development, and Viacom 18 Media Pvt. Ltd. Areas of concern: Despite the positive hype and sustained interest in its offerings, the reach of Colors in India is almost as wide as that of its competitors. Falling viewership shares 443 GRPs! That’s a number you usually associate with a channel that airs a cricketing extravaganza like the ‘Indian Premier League’ or the cricket world cup. However, this staggering number belongs to Star Plus that has extended its supremacy over other channels. Colors stands a distant second with 271 GRPS, followed by Zee TV (231) and Sony (125), according to the TAM data week 25 (June 13-19). [pic]Buzz up! Buzz up! The 443 GRPs is the highest by a Hindi GEC in the last 159 weeks. The previous record was held by the same channel too. The path ahead: 1. Maintain/increase market share 2. Continue with innovative content 3. Collaborate with diverse content providers from other countries to design and introduce new format shows and serials. 4. Exclusive screening of tele- films, short films at a particular slot to cater to a niche audience