The clutter on the general entertainment channel (GEC) space is growing by leaps and bounds and everyone wants to capture one of the top three slots and remain profitable. On the one hand, while content decides the fate of any GEC, it also drives advertising revenue, which is the primary source of income of any broadcaster in the country today. The new kid on the block is Colors by Viacom18, the 50:50 JV between Network 18 and Viacom. The channel is slated to go on air from July. Rajesh Kamat, CEO, Colors says that the channel will independently sell ad spots and not as a network. But, it enjoys an edge over the others as it is being backed by Viacom and Network18. Viacom18 houses some of the biggest brands like Nickelodeon and MTV. And Network18 also has some of the biggest names associated with it, including CNN IBN, IBN 7, etc.
CD Mitra, president, Mudra MAX, said, \"The network's existing sales deals may be an advantage but the fate of the channel will depend on the kind of content it will finally offer. 'Fear Factor' sounds like an interesting concept but the programme is a little niche. It is extremely difficult for any GEC to generate revenue.\"
The biggest investment for a GEC is its distribution cost and that can go as high as Rs 20-30 crore. Also, the cost of launching a channel in DTH has gone up because of an increasing subscription base. This, along with programming cost, overall administration cost, makes the cost of a GEC quite substantial. Planners say that raising this cost through ad revenue is difficult and that is why most of the GECs are bleeding today.
Viacom18 Color has task cut out
CD Mitra, president, Mudra MAX, said, \"The network's existing sales deals may be an advantage but the fate of the channel will depend on the kind of content it will finally offer. 'Fear Factor' sounds like an interesting concept but the programme is a little niche. It is extremely difficult for any GEC to generate revenue.\"
The biggest investment for a GEC is its distribution cost and that can go as high as Rs 20-30 crore. Also, the cost of launching a channel in DTH has gone up because of an increasing subscription base. This, along with programming cost, overall administration cost, makes the cost of a GEC quite substantial. Planners say that raising this cost through ad revenue is difficult and that is why most of the GECs are bleeding today.
Viacom18 Color has task cut out
