India. The television station is an additional firm of MTV Networks Asia Pacific which operates specifically in India by providing entertainment to different age groups and market segments. Initially during the early 1990s, it broadcasted American programs while today it launches local programs which have attracted a wide and loyal base of viewers. This research paper analyzes the environment and profile of the company. It investigates the challenges which the company currently faces while proposing numerous recommendations that might minimize or reduce these hurdles. MTV Environment
India has witnessed an unprecedented and extraordinary economic miracle since the government opened the economy during the early 1990s. The Indian market is a vast consumer market which has a growing middle class. The relatively affluent middle class seeks entertainment which must be a mix of Western and local traditions. India is also a democracy which allows freedom of expression and a dynamic entertainment industry. Most industry giants of the entertainment business have opened their local outlets inside the country. MTV India has enjoyed substantial growth since its launching because of the friendly environment.
The company understood that in order to survive it would have to mix its Western programs with a blend of local music and entertainment. MTV India faces significant challenges because of the fact that Indian consumers pay little money for cable TV. MTV India also faces the challenge of other entertainment channels like Star Plus which generate much greater revenue as compared with the company. Company Profile The company was initially started in 1991 which only broadcasted American music programs to Indian audience. It was only after 1996 that the company began to launch local shows to appeal to a wider audience.
It is a very famous music channel in India which broadcasts for twenty four hours by providing seventy percent of local music and thirty percent of international music (“MTV India”). It mainly targets the Indian youth population through a combination of music, comedy, and fashion. MTV Immies and MTV India awards are also hosted by the channel which has created new trends inside the Indian entertainment industry (“MTV India”). Another innovation has been MTV Desi which has been launched to target the young population of the region (“MTV India”). MTV India also produces most of its shows which is unlike other television stations.
Issues facing MTV India One of the major issues which MTV India faces is that of local and international competitors. The company has to struggle with local television stations that offer programs in local languages. Another important issue is that of advertisements which are sold to companies at a low rate. The sale of an advertising slot for thirty seconds costs only eight thousand to eleven thousand rupees for MTV India. This is peanuts as compared to what Star and Sony charge for selling time for advertising. Star and Sony are giants inside the Indian entertainment industry which pose significant threats for MTV India.
These channels are geared towards launching programs that target Indian families. MTV India on the other hand exclusively tackles the youth of the country. Solutions for problems MTV India needs to offer more programs in local languages like Telegu and Tamil. It should create special stations which cater to the audience that comprises the non Hindi speaking population of India. This would allow it a greater market audience but the problem is that the company will have to make more diversified programs instead of catering to specific market segment (Gunther).
There is also the need to launch innovative and creative advertising and promotion campaigns that would increase revenue for the company which would be beyond its current policy of selling thirty second spots. It could generate funds by campaigning with other multinational companies to develop and advertise their products inside new programs (Gunther). MTV India also needs to increase its target market by attracting older viewers by the programming and broadcasting of specific programs that cater to this market segment. Recommendations
MTV India needs to launch innovative and creative products to increase revenues and profits. It should launch partnerships with multinational companies that would bring increased money from advertising. It could also launch programs in local languages which would help it to compete with local television stations (Gunther). Launching products would also market and increase the advertising campaigns of the company. This would be beneficial in increasing profits and revenues for the organization. Conclusion The Indian entertainment industry is a vast market because of minimum government regulation and vibrant culture.
MTV India may be the number one music channel in India but it needs to refocus and reorient its marketing strategy so that it might be able to thrive inside the Indian market.
“MTV India. ” Indianetzone. 2008. Indianetzone. 18 Nov 2008 <http://www. indianetzone. com/3/mtv_india. htm>. Gunther, Marc . “MTV’s Passage To India The country’s vast middle class is a tantalizing market. ” CNNMoney. com. 2004. CNNMoney. com. 18 Nov 2008 <http://money. cnn. com/magazines/fortune/fortune_archive/2004/08/09/377904/index. htm>.