CASE STUDY ON

contents

EXECUTIVE SUMMARY

BACKGROUND OF DOORDARSHAN

PROBLEMS OF DD, WHY SAGGING REVENUE?DOORDARSHAN’S STRATEGY IN

THEIR LIFE CYCLE

RECOMMENDATIONS

CONCLUSION

EXECUTIVE SUMMARY

This case study covered the analyzing views of the problems & also puts a question that “Is the Government taking some serious steps for solving these problems?”

This Case Study is actually based on the different types of problems of Doordarshan which plagued their performance. And one vital question arises that “ IS DD DEAD?“

SOME VIEWS ABOUT CASE STUDY

BACKGROUNDDoordarshan, the national television service of India is devoted to public service broadcasting ( is one of the largest terrestrial networks in the world ).

Doordarshan is also one of the largest broadcasting organizations in the world in terms of the infrastructure of studio and transmitters, the variety of software and the vastness of the viewership.

The experimental telecast started in Delhi in September 1959 with a small transmitter and a makeshift studio and a regular daily transmission started in 1965.

Television was separated from Radio in 1976 and Doordarshan came into existence, from then onwards, there has been steady progress in Doordarshan.The flagship of Doordarshan – DD-I– operates through a network of 1308 terrestrial transmitters of varying power reaching over 90 percent of the population. Presently, Doordarshan operates22 channels – the DD1, DD2, DD-news, DD-sports, 11 Regional languages satellite channels, five state networks, an International channel and Educational Channels.

PROBLEMS OF DD

DD was plagued by multiple problems, which found their roots in the mismanagement of affairs.

In late 1990’s DD faced number of allegations of large-scale scams and irregularities. Under utilized infrastructure, improper investments and poor financial management plagued the performance of DD.

In 1992 , when the Government opened airwaves to private players like cable & satellite channels, DD faced the sever competition from them.

Due to the poor TVRs of the DD programmes companies did not give any advertisement in them, except only some FMCG product companies.

Private channels had their own marketing teams, where DD had 56 different producers but no marketing team.

CABLE TV GROWTH IN URBAN INDIA

1992 1993 1994 1995 1996 1999 20001.2

3.3

11.815

1822

30

NUMBER OF HOUSEHOLDS WITH CABLE TV(IN MILLION)

NUMBER OF HOUSEHOLDS WITH CABLE TV(IN MILLION)

WHY SAGGING REVENUES ?

1995-96 1996-97 1998-99 1999-00 2000-01

4.3 5.72 3.99 6.1 6.58.1

33.2

-18.5

52.8

6

DD REVENUES

REVENUES(Rs bn)GROWTH OVER PREVIOUS YEAR(%)

CONTD.....During 1998-99 DD earned negative growth of revenues as they lost out on viewership segments with the highest purchasing power.

Due to poor TVRs in 2000-01 HLL’s share in DD’s AD revenues had gone down to 50%

TVRs also decreased because producers & distributors stopped giving Films to DD when asking for minimum guarantee of Rs 10 mn to broadcast a film.

TANGLE OF PROBLEMS

COMPARISON OF THE NEWS CHANNELS

STAR NEWS ZEE NEWS DD NEWS

Only premium brand’s ads taken. very selective regarding the ads.

All brand’s accepted. Not selective regarding the ads.

No ads. Only Social messages are broadcasted.

ANALYZE DOORADRSHAN’S STRATEGY

SWOT ANALYSIS:-Growth stage:-

strengths:-DD; at that time ruled at the monopoly market.They had done Geographic & Demographic segmentation perfectly at that time.Due to regular satellite channel DD earned 100% profit.

WEAKNESS:-

Programmes were lacking of innovative presentation.It telecasted only social programmes.

OPPORTUNITIES:-

In 1984, DD added second (DD2) to provide an alternative option to the urban people.DD had three-tier programme services-National, Regional & Local.

THREATS:-

RADIO the main substitutes presented at that time. High price rate of the Television.

MATURITY STAGESTRENGTH:-

It is one of the largest broadcasting organisations in the world in terms of the infrastructure of studios and transmitters.More than 1000 transmitters.

WEAKNESS:-Faced a number of allegation & large scale scams & irregulataries.Low credibility with certain sections of society.Rigid pricing strategy.Low TVRs rate.Quality of program’s is not as good as compared to C & S network.

OPPORTUNITIES:-

In 1995 DD launched DD-India, the international channel to reach NRI population.DD entered into an agreement with CNN & launched 24-hours News channel(DD-News).In 1999 DD launched separate Sports channel DD-Sports.

THREATS:-

Due to quality of program the reach of C & S network is continuously expanding.As the C& S network need the trained staff, some employees of DD may switchover and take new jobs.Political Interference & Machinery propaganda of Government.

DECLINE STAGE

STRENGTH:-FMCG companies stuck with DD because of its terrestrial network to each the rural & semi-urban audience.Covering 90% of population across 70 million homes against only 30 million homes by C & S.Government made a committee & gave some solving options.

WEAKNESS:-90% saturated in the Indian market, no visibility elsewhere.Charging high price for advertisement e.g. 1 lakhs for 10 sec.

OPPORTUNITIES:-To improve the quality of broadcast DD sought the help of BBC to digitize its channels.Modi Entertainment Network begun distributing the five DD channels via satellite.DD went in for a revenue sharing deal with B4U.

THREATS:-

As the C& S network needed the trained staff, some employees of DD may switchover and take new jobs.

Best of the market-technology is being used by the private channels.

All private channels focused on the Innovative Commercial media.

RECOMMENDATINSStrategically DD needs to undergo a policy

overhaul. DD, out of three options, namely privatization, public service broadcaster or a middle path, can choose the third one, i.e. a combination of both. The whole privatization is not possible under the diversified political scenario. Nor it would be desirable to hand over the broadcasting emotively in the private hand as it proves to be a great means of communication of many socially oriented public programmers. The government could also think in term of creating a corporation (as it did by creating Prasar Bharti) and provide reasonable autonomy to DD. As far as its advertisement tariff is concerned that can be made fairly competitive. However, at the same time cost of advertising is to be compared with the reach enjoyed by Doordarshan. The number of viewers may be far more to justify higher tariffs.

OUR VIEWS

It should economized on its operational aspects and ensure more productivity in term of revenue generation and optimization of use of its infrastructure.

At the same time quality and viewership of programmes should be improved.

Setting up its own marketing department.

CONCLUSION

DD has the potential the inform, educate & entertain people.Government should look for improvement of DD.Presently DD touches the lines of success through providing innovative programmes.

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