CBS-RBNL JV to launch first non-English language channel

Mumbai: US-based television production house CBS Studios International will start a Punjabi general entertainment channel in India later this month, its first non-English television venture, along with Reliance Broadcast Network Ltd (RBNL), the radio and television arm of Anil Ambani-led Reliance Group.

This is the fourth channel to be launched by CBS and its partner RBNL since the formation of a joint venture (JV) in August 2010.

“Our partnership with CBS is doing well and there is an opportunity for us to build a presence in the regional space,” Tarun Katial, chief executive, RBNL, said. “We chose to launch a Punjabi channel since the region in which the language is spoken has one of the highest income levels in the country, along with deep cable and satellite television penetration. Also, there isn’t much on offer in this part of the country in terms of international content.”

The channel, to be called BIG CBS Spark Punjabi, will offer a mix of internationally known CBS-produced shows such as America’s Next Top Model dubbed in Punjabi and locally produced content like a Punjabi music-based reality show to viewers across Punjab, Haryana and Himachal Pradesh.

“The move into the regional market perfectly complements our existing bouquet of channels in India, utilizing existing programming resources customized to the Punjabi market and backed by Reliance’s great media assets in the region,” Armando Nuñez, president, CBS Studios International, said in an email.

Based on the success of the Punjabi channel, the RBNL-CBS combine will also look at other channels in other regional languages, beginning with Hindi, Katial said.

Jehil Thakkar, an executive director at consulting firm KPMG, said it was natural for a multinational broadcaster to explore the regional space in India for substantial growth since English language content has a limited audience. “The bulk of the viewership is in Hindi and other regional media, which has shown resilience and better growth rates amidst a downtrend in the advertising market,” Thakkar observed. “Also, the capex required for starting a regional channel is lower.”

Every region, however, has entrenched players in television media, and an entrant needs to create a “disruption” in the market to be successful, Thakkar said.

A media and entertainment industry report released by the Federation of Indian Chambers of Commerce and Industry (Ficci) and KPMG in February 2011 said regional print and television will be the primary drivers of the expected increase in advertising inventory as new channels and media formats were added.

Advertising volumes on television have exhibited a shift in favour of regional channels, according to the report. “In 2010, of the total ad volumes on television, 53% was on regional channels as opposed to national channels, growing from 47% in 2009,” the report said. “Realizing the power of regional media, national and foreign players have ventured into regional markets and several others are likely to follow suit.”

Hindi and other regional general entertainment channels together account for more than half of the viewership on Indian television, it said. In terms of ad sales, however, national channels command a larger share of the market because of higher ad rates. “With rationalization of ad rates expected going forward, there is a potential for revenue growth for the regional channels,” the report said.

aveek.d@livemint.com