‘Aaj Tak’ News Channel’s Success Story
INTRODUCTION

• Logo
•
•
•
•
•

Parent Company
Category
Sector
Tagline/ Slogan
USP

India Today Group
News Channel
Media and Entertainment
Sabse Tez
Fast News
CONT…
• Aaj Tak, a 24 hours Hindi news channel in India, was
launched in December 2000. Since then, the channel has
maintained its lead news segment. The case explores the
reasons for in viewership in the success of Aaj Tak.
• It examines the background of the channel and the
circumstances that led to its launch. The case also draws a
comparison between Aaj Tak and its competitors such as Zee
National, NDTV India (Hindi), Star News, and DD News
Sahara Samay
• It also takes a look at the news channels market in India and at
the future outlook of Aaj Tak.
ISSUES
 Strategies adopted by a news channel to differentiate itself in a
cluttered market
 Role of programming for success in crowded market
 Role of branding for success in a cluttered news channel
market.
Aaj Tak – Key Word Defined
• "Aaj Tak redefined the whole concept of news which was
hitherto the prerogative of Star and Zee."
- Satyajit Sen, head, media buying, Grey Worldwide

• Aaj Tak in the past few months has achieved unqualified
success and has also been able to carve a distinct niche for
itself in the world of news. All brands that have advertised on
Aaj Tak have benefitted. Apart from providing a reach that is
significant, the channel has also been able to deliver quality
audiences.“
- Rajul Kulshreshtha, VP, Universal McCann
Critical Success Factors
• Aaj Tak remains Number 1 even though the number 2 keeps
changing
• Tez has complimented Aaj Tak and shows tremendous
promise for the future
• Network Strategy helps in increasing the advertising rate
Growth Factors
• Domestic
– Exploring more profitable niche segments within the news genre

– Explore new formats such as Tez

• International
– Following success in the US – exploring more markets with a sizeable Indian
Diaspora
– Both Subscription and advertising revenue

• Emergence of addressable distribution platforms
– DTH
– IPTV
CONT…
• Subscription Revenue
– Subscription Revenue will compliment advertising revenue – both from
domestic and international markets
– A family spends Rs 600 on a weekend in a multiplex. Why not pay for quality
content for a month on TV ?

• Radio
– Acquire the group’s radio business

• Digital Platforms (Web & Wireless)
– To transfer TV Today’s and LMI’s digital assets to a separate company
– To look at consolidation of the digital assets in order to monetise the
opportunity
SWOT Analysis
Strength:
• Though started as a programme
called "Aaj Tak" on national TV
soon turned out to start its own
private channel

• Broad base of viewership
• Nationwide and fast coverage
• Distribute prizes to lucky viewers

answering simple questions
• Claims to be #1 News channel in
India for so many years
CONT…
Weakness :
• Accused of serving news as entertainment many a times
• Consequences of "NEWS" shown
• Sometimes biased analysis
• Not focusing on various govt. schemes for common man
• Increase in operating cost
• Increase in Subscription Cost
CONT…
Opportunity :
•
•

Can prosper by using large base of viewership properly
Should focus more on government's new programmes and schemes to
educate viewers
• Need to understand what viewers want to see and what they offer
• Benefit from the robust growth of the Entertainment and Media sector

Threats :
•
•
•
•
•

High switching rate of viewer
Slowdown in India’s economic growth
Presenting news in filmy fashion is unacceptable to many viewers
Increase in competition
News as a genre dipping
Potter’s Five Forces Analysis
• Barrier to entry : High to
moderate, legislations and cost of
research and development High
sunk

cost,

high

capital

requirement, difficult to access to
distribution,

steeper

learning

curve because of mature market.
CONT…
• Industry competition: High, advantage gained through technology
and marketing strategies. Highly fragmented industry high fixed cost,
highly perishable products highly diversified rivals

• Suppliers: Supplier power is low decreasing power of bargaining of
suppliers due to increase in number of content providers.

• Bargaining Power : Bargaining Power of consumers are high
consumers can switch channels. Inceased in number of variety of channel
due to globalization, availability of variety of alternative sources of
entertainment

• Substitutes: High like film industry, sports events cricket live matches
,print media, internet
PESTEL Analysis
• Political
In the early 1990s, the
Government of India (GoI)
allowed the entry of private
channels into the entertainment
software industry.
Political interest increase because
of the recognition of the media
industry economic importance to
the overall economic growth of
the country.
CONT…
• Economic
Economic growth because of the corporate advertising spend in niche
areas also increased as companies could reach specific viewer segments
through these channels.
The growth of the industry is expected to grow by 16% in the current year
( 2-3% market share in television sector)

• Social aspect :
The impact of intense media attention has brought about a more revolution
in the social aspect and created a society which is more enlightened and
which appreciates the industry.
CONT…
• Technological advances
The technological advancement taking place in industry is high and this
calls for increased spending and research so as to be innovative in the
industry.

• Legal environment
Legislations such as anti-piracy laws have been enacted and the
government tries to enforce the fully even though it is difficult. Aaj Tak
has to take legal action against Mumbai based newspaper called Khabrein
Aaj
Competitors
•
•
•
•
•
•

Star News
Times Now
NDTV India
Other regional news channels
Internet
Newspaper

Aajtak

  • 1.
    ‘Aaj Tak’ NewsChannel’s Success Story
  • 2.
    INTRODUCTION • Logo • • • • • Parent Company Category Sector Tagline/Slogan USP India Today Group News Channel Media and Entertainment Sabse Tez Fast News
  • 3.
    CONT… • Aaj Tak,a 24 hours Hindi news channel in India, was launched in December 2000. Since then, the channel has maintained its lead news segment. The case explores the reasons for in viewership in the success of Aaj Tak. • It examines the background of the channel and the circumstances that led to its launch. The case also draws a comparison between Aaj Tak and its competitors such as Zee National, NDTV India (Hindi), Star News, and DD News Sahara Samay • It also takes a look at the news channels market in India and at the future outlook of Aaj Tak.
  • 4.
    ISSUES  Strategies adoptedby a news channel to differentiate itself in a cluttered market  Role of programming for success in crowded market  Role of branding for success in a cluttered news channel market.
  • 5.
    Aaj Tak –Key Word Defined • "Aaj Tak redefined the whole concept of news which was hitherto the prerogative of Star and Zee." - Satyajit Sen, head, media buying, Grey Worldwide • Aaj Tak in the past few months has achieved unqualified success and has also been able to carve a distinct niche for itself in the world of news. All brands that have advertised on Aaj Tak have benefitted. Apart from providing a reach that is significant, the channel has also been able to deliver quality audiences.“ - Rajul Kulshreshtha, VP, Universal McCann
  • 6.
    Critical Success Factors •Aaj Tak remains Number 1 even though the number 2 keeps changing • Tez has complimented Aaj Tak and shows tremendous promise for the future • Network Strategy helps in increasing the advertising rate
  • 7.
    Growth Factors • Domestic –Exploring more profitable niche segments within the news genre – Explore new formats such as Tez • International – Following success in the US – exploring more markets with a sizeable Indian Diaspora – Both Subscription and advertising revenue • Emergence of addressable distribution platforms – DTH – IPTV
  • 8.
    CONT… • Subscription Revenue –Subscription Revenue will compliment advertising revenue – both from domestic and international markets – A family spends Rs 600 on a weekend in a multiplex. Why not pay for quality content for a month on TV ? • Radio – Acquire the group’s radio business • Digital Platforms (Web & Wireless) – To transfer TV Today’s and LMI’s digital assets to a separate company – To look at consolidation of the digital assets in order to monetise the opportunity
  • 9.
    SWOT Analysis Strength: • Thoughstarted as a programme called "Aaj Tak" on national TV soon turned out to start its own private channel • Broad base of viewership • Nationwide and fast coverage • Distribute prizes to lucky viewers answering simple questions • Claims to be #1 News channel in India for so many years
  • 10.
    CONT… Weakness : • Accusedof serving news as entertainment many a times • Consequences of "NEWS" shown • Sometimes biased analysis • Not focusing on various govt. schemes for common man • Increase in operating cost • Increase in Subscription Cost
  • 11.
    CONT… Opportunity : • • Can prosperby using large base of viewership properly Should focus more on government's new programmes and schemes to educate viewers • Need to understand what viewers want to see and what they offer • Benefit from the robust growth of the Entertainment and Media sector Threats : • • • • • High switching rate of viewer Slowdown in India’s economic growth Presenting news in filmy fashion is unacceptable to many viewers Increase in competition News as a genre dipping
  • 12.
    Potter’s Five ForcesAnalysis • Barrier to entry : High to moderate, legislations and cost of research and development High sunk cost, high capital requirement, difficult to access to distribution, steeper learning curve because of mature market.
  • 13.
    CONT… • Industry competition:High, advantage gained through technology and marketing strategies. Highly fragmented industry high fixed cost, highly perishable products highly diversified rivals • Suppliers: Supplier power is low decreasing power of bargaining of suppliers due to increase in number of content providers. • Bargaining Power : Bargaining Power of consumers are high consumers can switch channels. Inceased in number of variety of channel due to globalization, availability of variety of alternative sources of entertainment • Substitutes: High like film industry, sports events cricket live matches ,print media, internet
  • 14.
    PESTEL Analysis • Political Inthe early 1990s, the Government of India (GoI) allowed the entry of private channels into the entertainment software industry. Political interest increase because of the recognition of the media industry economic importance to the overall economic growth of the country.
  • 15.
    CONT… • Economic Economic growthbecause of the corporate advertising spend in niche areas also increased as companies could reach specific viewer segments through these channels. The growth of the industry is expected to grow by 16% in the current year ( 2-3% market share in television sector) • Social aspect : The impact of intense media attention has brought about a more revolution in the social aspect and created a society which is more enlightened and which appreciates the industry.
  • 16.
    CONT… • Technological advances Thetechnological advancement taking place in industry is high and this calls for increased spending and research so as to be innovative in the industry. • Legal environment Legislations such as anti-piracy laws have been enacted and the government tries to enforce the fully even though it is difficult. Aaj Tak has to take legal action against Mumbai based newspaper called Khabrein Aaj
  • 17.
    Competitors • • • • • • Star News Times Now NDTVIndia Other regional news channels Internet Newspaper