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Friday, June 4, 1999

Channel V splits into four; India budget sees 81% rise 

Sibabrata Das  
Mumbai June 3: As part of its restructuring exercise, worldwide Channel V has split into four operational divisions -- Greater China, India, International and Networks. The Channel V board approved the split two weeks ago and now the formal process has been complete.

The board has also approved an 81 per cent increase in programming budget for Channel V India and a 51 per cent rise in marketing operations. "The focus is on decentralisation. India has been recognised as a core market for Channel V," said Mahesh Murthy, consultant, Channel V India.

While the northern beam will look after China and Taiwan, Channel V Networks will function as a central support organisation for the other three divisions. Headed by former Channel V finance head Simon Dewhurst, Networks will include representatives from areas like programming, scheduling, sales and finance.

Channel V International will stretch from Israel to Japan and target expatriates. It will be a pay channel, playing western music. With the programmescheduling shifting from Hong Kong to India, Channel V India will now have full operational independence. Programming, which was clubbed with music and artiste relations, is split into a new department. Rajesh Tahil has been appointed as director, programming, Channel V India.

"We don't have to depend on Hong Kong anymore. The entire scheduling will be done in India. We will be able to track popular songs much faster," said Murthy.

Besides a programming head, Channel V India will soon have a chief financial officer. Earlier, STAR TV Network used to decide on Channel V's budget.The commercial head will look after distribution, viewership trends and syndication of programmes. Nascent, the fourth organisational leg, will be responsible for brand extensions, merchandising and operations.

The four divisions will report to the Channel V India general manager, who will be appointed within two months. "From a horizontal organisational structure, we are going vertical," said Murthy.

For getting national andregional programming inputs, Channel V is setting up four divisional production offices at Bangalore, Delhi, Calcutta and Chennai. Around 50 people will look at programming outside Mumbai.

The channel is hiring 12 new VJs and introducing 25 new shows to increase its audience appeal. The aim: To widen the lead in the 15-24 age-group segment in socio-economic classifications A and B.

Channel V worldwide will invest $36 million in the current financial year, up from $28 million last year. A major chunk of this amount will be spent on the Indian operations, said Murthy. "We are gearing up for a major push this year which will set us apart from other music channels who are playing catch up. The only way to widen our lead is to have the right people, the right sort of investments and the right programming. We are putting everything together. Nothing at this velocity has been happened in the past," said Murthy.

Why is Rupert Murdoch spending so much on Channel V when there are reports that he is losing $100million since 1994? The media baron is known for his interests in news and sport. His new focus: To connect to the youth through a music channel. He is making Asia the centre of his gameplan. If Channel V succeeds in the region, he will export it to Europe and the US.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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