Saturday, January 27, 2007

The future of STAR Plus: Remember BPO and DNA

When Dhirubhai Ambani decided to enter the media firmament with a financial paper dubbed The Business and Political Observer, the announcement was like a tsunami hitting the shores of The Economic Times. Journalist after journalist left ET for the then proposed paper – a paper that forced The Economic Times to go pink in a pre-emptive move. ET was in trouble, said the doomsday prophets.
To cut a long story short, and because this is a blog and not a Sunday paper, the rest is history. BPO sank without a trace. The paper was a poor cousin of ET, and was treated as such by those who mattered – readers and advertisers.
Years later, The Times of India was in a similar position, with the announcement of a new English daily backed by the Dainik Bhaskar – Zee TV combine. More importantly, the new paper, christened Daily News and Analysis (DNA), was able to attract talent from The Times of India from significantly higher echelons than BPO was able to do – it snared Pradeep Guha, Ayaz Memon, Malavika Sanghvi, Sathya Saran – names to reckon with in the media world.

The Times is in trouble, said the doomsday prophets.

And in the year and a half gone by since the launch of DNA, The Times of India group launched Mumbai Mirror, and Hindustan Times launched its Mumbai edition. The Times of India has improved the offering significantly, and the revenues of the Mumbai edition, from what one understands, have grown rather than shrunk in the 18 or so months since the DNA launch.
If one looks back, and, therefore, with 20:20 hindsight, it isn’t tough to figure out why:

The Times of India wasn’t as bad a paper as the doomsday prophets made it out to be
The new paper was not as different (nor, in the opinion of readers and advertisers, better) as the doomsday prophets believed it would be
The fact that media consunption is a HABIT was ignored by the doomsday prophets
The fact that the owners and senior management at the Times of India had the will and the wherewithal to fight back was ignored or underestimated
The strength and muscle that a leader enjoys– in this instance, specifically, the clout in distribution and the clout with large advertisers – was also ignored and underestimated

And today, one hears of a STAR Plus that is under threat because of the departure of Sameer Nair, and a STAR TV that is under threat because of the departure of Peter Mukerjea.

Consider:
STAR Plus IS a leader, and the very products that Sameer Nair commissioned will remain with STAR Plus. They will not travel with him
STAR Plus is the leader because of the width of offering, not because of a single K serial or because of the success of earlier editions of KBC (and, as things stand today, the encouraging performance of the SRK KBC).
A management crisis in STAR is something the viewer has no knowledge of, and no interest in. He/ she is only concerned with the content that is available on the idiot box
STAR Plus WILL fight back – and will use all the resources that they have in their arsenal – including the depth of the pockets, their distribution clout, their ability to collect from advertisers and their considerable brand – to maintain leadership status
Paul Aiello has some breathing time. KBC has completed just one week, and Koffee with Karan and Antakshari wait in the wings.

At the same time, one can also expect the following:
Zee TV under Pradeep Guha will attempt to strike hard at STAR’s most vulnerable moment.
Peter Mukerjea and Sameer Nair will carry some executives with them
If, as the rumour mills suggest, Nair does take up a significant role in NDTV’s entertainment channel, the channel will cause a dent in the ENTIRE General Entertainment Channel market, not just in STAR Plus’ share. Zee will also have to contend with Sameer Nair!
Similarly, Mukerjea's new foray (not the one as a headhunter!) will impact all in the TV business, not just STAR
But Zee, Nair and Mukerjea will surely remember what the doomsday prophets do not: that the ultimate battle is one of content appeal and quality, not one of temporary top management vacuums.


Because STAR Plus is the channel, not Sameer Nair. And STAR TV is the organization, not Peter Mukerjea.

And, as the ratings suggest week after week, STAR Plus is not a bad channel at all. And so the viewers and the people meters say.
Read Ramya Ramamurthy’s doomsday prophecy on moneycontrol.com here: Is this the end for STAR TV?

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