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SRM UNIVERSITY, KATTANKULATHUR 603203 COURSE : Ph. D ASSIGNMENT ON RESEARCH METHODOLOGY NOVEMBER 2

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SRM UNIVERSITY, KATTANKULATHUR 603203
COURSE : Ph. D
ASSIGNMENT ON RESEARCH METHODOLOGY
NOVEMBER 2010
DOORDARHSAN : BROADCASTING BLUES
[DD India’s national television network is one of the world’s largest broadcasting
organizations with respect to the infrastructure it possesses. It present telecasts programs
on 19 channels. Over the years, DD has been losing its advertising revenues to its
competitors [private channels]. The continuously falling Television Viewers Rating added
to the problem. DD has also been facing many problems regarding its managements, right
from the time when Prasar Bharati was created. In mid-90’s, cable television reached many
Indian homes and several private channels were launched. All of a sudden DD had to
content with a host of channels whose programs were better produced. Poor quality of
transmission and program content prompted viewers to switch to private channels. The
case provides an overview of the problems faced by DD due to mismanagement and
competition from private channels.]
“DD needs an owner” – CEO, Carat Media Services India.
IS DD DEAD ?
After years of falling revenues, in 1999-2000 DD had a revenue growth of 50%. In 1999-2000, DD
earned revenues of Rs. 6.1 bn compared to Rs. 3.99 bn in 1998-99. DD showed signs of revival
with the launch of DD Worlds [a channel for NRIs] and had a certain measure of success with some
of its regional channels [Table 1 DD Channels : A snapshot]. However, by the end of 2000-01,
DD’s revenues were projected to grow at 6 15 % while private channels such as Zee T V, Star
and Sony had a projected 40 50 % revenue growth.
According to some analysts, DD’s sagging revenues were only the tip of the iceberg. DD was
plagued by several problems. By the late 1990’s, most private producers and advertisers and a
good part of the audience had deserted DD. Not even one car company advertised on DD and
even two wheeler manufacturers kept away. Advertisements of Pepsi and Coca Cola were found
only during sports telecasts. Only FMCG companies stuck to DD, because its terrestrial network
would help them to reach the rural and semi urban audience. Despite having over 21000
employees, DD outsourced 50 % of its programs from private producers.
In the late 1990’s, DD faced allegations of large scale scams and irregularities. Under-utilized
infrastructure, improper investments and poor financial management adversely affected DD’s
performance. In 1992, when the Government opened the airwaves to private players, DD had to
face competition from private satellite channels. In Cable and Satellite [C & S ] homes it was found
that DD programs had hardly any viewers. The depleting Television Viewer Ratings [TVRs] of the
DD programs was also a cause of concern as advertisers deserted due to its low viewer ratings.
According to analysts, DD would need a budgetary support of Rs. 5 bn during fiscal 2000-01 to
sustain itself, as its revenues would not cover its expenditure. Many analysts felt that privatization
would be the only solution.
DD : THE INSIDE STORY
DD was launched in 1959 as the National Television Network with a modest 21 community sets in
Delhi. In the year 1982, with the introduction of regular satellite link between Delhi and different
transmitters, DD began the transmission of national programs. In the same year, DD switched to
colour transmission. Soon it had penetrated every nook and corner of the country, cutting across
demographic and geographic barriers.

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DD had a three-tier program service national, regional and local. The national programs focused
on the national culture and included news, programs on current affairs, and science, cultural
magazines, serials, music and dance recitals, plays and feature films. At the regional level the
programs were similar to the ones broadcast at the national level, the only difference being that
they were broadcast in the regional language.
In 1984, DD introduced a second channel [DD2] in cities like Delhi, Mumbai, Kolkata and Chennai.
DD2 was targeted at urban viewers, particularly the young viewers.
In 1995, DD launched DD India, its international channel to cater to the NRI population. This
service covered SAARC countries, Gulf countries, West Asia, Central Asia, North Africa and
Europe. In the same year, DD entered into an agreement with the Cable News Network [CNN] and
launched a 24 hours news and current affairs channel : DD News. In 1999, DD launched a
separate channel for sports.
In the early 1990s, about 479 mn people in Indian homes viewed DD and an additional 1.5 mn
watched DD on community sets. DD was ahead of the private channels in terms of viewership with
a 90% reach. However, in the late 1990s. it could not maintain the lead and private channels were
catching up in terms of revenue even though they lagged behind in viewership and reach.
Cable onslaught
In 1984, cable television entered India. For local entrepreneurs, cable television provided a good
business opportunity, as investments required to install a cable network were low. In the early
1990s, many private television channels were launched. Zee TV launched in 1992 led the pack.
During 1992-94, there was rapid increase in the number of cable connection in Western and
Northern India. In Tamil Nadu and Andhra Pradesh, a number of Tamil and Telugu channels came
up in the mid-1990’s.
Though by 2000, DD had an incredible reach of 70 mn homes, in comparison to C & S’s reach of
only 30 mn homes. It could not turn this network into an advantage [Table II for growth of cable
and satellite penetration in India]. In urban households, DD programs had hardly any viewers. DD
was also behind the private channels in terms of ad revenues, as its TVRs were very low compared
to the TVRs of programs on private channels.
Falling Revenues
During 1996-99, the TV advertisement market grew by 76%, but DD’s revenue from advertisement
registered a negative growth [Table III for fall in revenues of DD]. Though DD continued to be
number one in overall audience share, it lost out on viewership segments that had the highest
purchasing power.
In 1998-99, DD’s revenue from advertisements were Rs. 4 bn [25.8% of the market], Zee TV was
close with Rs. 3.85 bn, Sony had Rs. 2.53 bn and Star channels grossed Rs. 2 bn. But the ad
revenues of private channels have grown significantly, when compared to those of DD. During the
period 1996-99, Zee registered a growth of 122% in ad revenues, Sony 299% and Star channels
206%. During the same period, DD’s ad revenues went down by 70.17
%. DD’s falling TVRs were a matter of concern for clients like Hindustan Lever DD’s largest
advertiser. Said Ashutosh Srivastava, VP, HTA-Fulcrum, the media-buying arm of HLL, “ Our only
source of reaching 40% of this country is going down.” Till 1998-99, 70% of HLL’s ad spend went
to DD but by 2000-01, due to falling TVRs HLL’s ad spend to DD had gone down to 50%.
During 1999-2000, producers and distributors stopped giving films to DD when it began to demand
a minimum guarantee of Rs. 10 mn to broadcast a film. This forced DD to repeat the same old
films that it had aired several times, and the RVRs went down further.

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SRM UNIVERSITY, KATTANKULATHUR 603203 COURSE : Ph. D ASSIGNMENT ON RESEARCH METHODOLOGY NOVEMBER 2010 DOORDARHSAN : BROADCASTING BLUES [DD India’s national television network is one of the world’s largest broadcasting organizations with respect to the infrastructure it possesses. It present telecasts programs on 19 channels. Over the years, DD has been losing its advertising revenues to its competitors [private channels]. The continuously falling Television Viewers Rating added to the problem. DD has also been facing many problems regarding its managements, right from the time when Prasar Bharati was created. In mid-90’s, cable television reached many Indian homes and several private channels were launched. All of a sudden DD had to content with a host of channels whose programs were better produced. Poor quality of transmission and program content prompted viewers to switch to private channels. The case provides an overview of the problems faced by DD due to mismanagement and competition from private channels.] “DD needs an owner” – CEO, Carat Media Services India. IS DD DEAD ? After years of falling revenues, in 1999-2000 DD had a revenue growth of 50%. In 1999-2000, DD earned revenues of Rs. 6.1 bn compared to Rs. 3.99 bn in 1998-99. DD showed signs of revival with the launch of DD Worlds [a channel for NRIs] and had a certain measure of success with some of its regional channels [Table – 1 DD Channels : A snapshot]. However, by the en ...
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