The MTV - Channel [V] Rivalry in India|Business Strategy|Case Study|Case Studies

The MTV - Channel [V] Rivalry in India

            
 
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Case Details:

Case Code : BSTR038
Case Length : 15 Pages
Period : 1991 - 2002
Organization : Channel [V], Music Television (MTV)
Pub Date : 2002
Teaching Note :Not Available
Countries : India
Industry : Media & Entertainment

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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A 'Musical' Fight Contd...

This was indeed ironic. MTV had become popular by adapting a programing genre that had been pioneered by Channel [V] itself - something that was popular as 'Hinglish' programming (wherein a majority of the programs were in Hinglish, a mixture of India's national language, Hindi, and English). MTV's rising popularity forced Channel [V] to rethink its strategies and set things right. Restructuring efforts began in 1999, wherein the channel's image was sought to be changed to that of a youth TV channel. However, the job was easier said than done.

Background Note

Started in 1981, MTV was a part of the advertiser supported, cable service MTV networks owned by Viacom.2 Its target audience was between the age group of 12-34. By 1984, MTV had changed the dynamics of the music industry. It was reported that leading artists had started making music albums and their videos specifically with MTV in mind. MTV concentrated on youth centric programs, which included home videos, consumer products and books featuring MTV programing and personalities. According to its policy of 'Think Globally, Act Locally,' MTV launched MTV Europe, MTV Brazil, MTV Australia, MTV Asia, MTV Latin America and MTV Russia over the next few years. The channel decided to enter India on the STAR platform after the market opened up for foreign satellite TV channels in the early-1990s.

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Until then, the Indian television industry was completely under the control of the state owned entity, Doordarshan. Satellite TV channels entered the country during the Gulf war. The news channel CNN was the first satellite channel to be made available to the Indian viewers.

It was followed soon after by the STAR Network. STAR was a wholly owned subsidiary of the News Corporation3 and was a leading multi-platform content and service provider in Asia. Its TV channels included Star Plus, Star World, ESPN, Star Sports, Star Movies, Star Gold, Phoenix Movies, VIVA Cinema and Star News.

It also included distributed channels like Fox News, Sky News and National Geographic Channel. In 1991, MTV Asia began operations by telecasting music videos by popular international artists, which attracted the attention of many viewers all over the country. Having been fed a rather dull programming mix for decades by Doordarshan, Indian TV viewers were quick to adapt to channels like MTV...

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2] Viacom is a leading global media company involved in broadcasting, cable TV, radio, outdoor advertising and Internet businesses. Its well-known brands include CBS, MTV, Nickelodeon and Paramount Pictures.

3] News Corporation Limited is one of the world's largest media companies with total assets of approximately $ 38 billion (December 2000 figures) and total annual revenues of approximately $ 14 billion. News Corporation's diversified global operations in the US, Canada, Continental Europe, Australia, Latin America and the Pacific Basin included production and distribution of motion pictures and TV programming; TV, satellite and cable broadcasting; publication of newspapers, magazines and books; production and distribution of promotional and advertising products and services; development of digital broadcasting; the development of conditional access and subscriber management systems; and creation and distribution of popular on-line programming.

 

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