Tuesday, February 19, 2013

Sun TV - Strategy - Focus on Content

Sun TV management outlined the company’s strategy as follows,

Content as a big differentiator
— Fresh content from 10:30 am to 11 pm daily, with no repetitions
— A movie library with over 10,000 titles built over the last two decades. All movie rights are perpetual and across all electronic mediums.
— Invest in movies. Buy 60-70% of movies in the four Southern languages

Unique model for outsourced content. For every 24 minutes of content produced by independent producers, Sun TV gives 4 minutes of advertising to the content producer. Given Sun TV’s dominant position in South India, this ensures that Sun TV is not taking a risk that the content may fail to click with its audience. Additionally, as prime time GEC advertising rates for Sun TV are 4-5x that of its rivals, the best producers are aligned with Sun TV. Sun TV only works with content providers on an exclusive basis. It is diversified across content providers and no content provider is producing content for more than two 30-minute slots

Sun TV is focused on the four Southern states (Tamil Nadu, Kerala, Andra Pradesh and Karnataka) that constitute around 38% of households with TVs in India. The company is unlikely to move into the Hindi segment. However, moving to contiguous states such as Maharashtra and Orissa are possibilities.

Sun TV has also partnered with India's Leading Online consumer complaint's platform to resolve its subscribers problems.

No comments: