Developing a lasting Islamic (media) television network

The Operational Strategy

INTRODUCTION......................................................................................................................................2 CASE STUDY 1: MTV...........................................................................................................................3 CURRENT MARKETING SITUATION...........................................................................................................4 ISLAMIC TELEVISION PROJECT COPYRIGHT2003 1

THE SCOPE OF OPERATIONS.....................................................................................................................5

Islamic Television Project

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Developing a lasting Islamic (media) television network

Introduction
The majority o$ the me%ia projects have limite% li$e&span!' because by nature they are prone to change( The unrestraine% changes in technology are ma)ing current metho%s o$ operation into legacy systems $aster than ever be$ore( The continuous evolution o$ cultures' there$ore people*s taste an% pre$erences( +s ,ell as other signi$icant $actors o$ sociopolitical nature( -ence me%ia projects an% especially television ventures are limite% by the high costs o$ establishment an% more than that the cost o$ maintaining that project 2( Secon%ly' access to the me%ia in%ustry is restricte% by the )no,le%ge base an% e.pertise' in a nutshell restricte% by the /)no, ho,* an% /,ho you )no,*( Not least the access to the in%ustry is verily limite% to the $e, privilege% in the /club*3' thus collective an% continuous hostility to ne, entrants( One thing that may never change in me%ia is the increasing nee% $or in$ormation an% the %eman% $or it through various me%iums( The strategic challenge that ,ill al,ays remain is the $act that 0It is easier to set&up a television station 12T ta)es a mammoth ,or) an% e$$ort in comparison to maintain an% sustain one3 4 Mark Lewis, former Director General of the BBC. N5S 6roup plc' a lea%ing supplier o$ open en%&to&en% %igital solutions $or %elivery o$ services $or television operators' reporte% in their annual accounts o$ 2002 that on average 78 channels starting up cease operations ,ithin the $irst year o$ broa%casting( The critical $actors i%enti$ie% $or the increasing number o$ start&up channels' such as channel 9ast going o$$&air ,ithin the short perio% o$ time' are: !( ;ac) o$ revenue an% %epen%ency on a single revenue stran% 2( Content a. Increasing repetition acting as au%ience repellent b( <uality %e$iciency causing bran% %ilution $rom lo, customer satis$action 3. strategic planning an% control ( Cost a( The cost o$ set&up ac=uiring the majority o$ capital an% causing $ault lines in the running $inancial health o$ the company( b( The costs o$ maintenance an% sustenance are greater than start&up' ,hich many $ail to $orecast an% consi%er( 5. >ea) 1ran%ing' although many ne, channels have set&up to provi%e $or the niche mar)et' they have $aile% to establish a strong enough bran% to attract the aspire% vie,er&ship' thus revenue( In many cases' numerous channels catering to,ar%s or competing $or a small niche(

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Thus decline within a short period of time, for example Channel East and Al-Majd II Both tangible and intangible costs, but mainl intangibles such a talent, branding and collaborations 3 !ong-standing projects such as the BBC or C"" which are hea#il state interdependent

Islamic Television Project

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Developing a lasting Islamic (media) television network

Case study 1: MTV
Ta)ing the success o$ ?T@ net,or)s as a illustrative e.ample o$ a channel ,hich begun $irst broa%casting in the 2S+ in !#"!' as the $irst 2 hours music channel' a large part o$ its success is attribute% to the net,or)*s ability to un%erstan%' $ollo, an% even shape the volatile teens an% t,enty&something in a ,ay that suit&an%&tie ,earing e.ecutives at tra%itional net,or)s have $oun% %i$$icult to imitate( It is possible through television me%ium to set the tren% an% help shape the cultures o$ society( -o,ever in or%er to %o that' one nee%s to $irstly gain the trust o$ the au%ience an% then inspire them to $ollo,( This may be only achieve% ,hen the broa%caster un%erstan%s the pulse o$ the au%ience an% able to translate that into programming( Reasons $or success: 1. + television channel nee%s constant supply o$ programmes $or it to merely survive( ?T@ ,as able to nurture a uni=ue relationship ,ith a number o$ e.ternal sta)ehol%ers( This relationship involve% the recor% companies provi%ing music vi%eos $ree o$ charge in or%er to promote their pro%ucts' ,hilst this bene$ite% both mutually( The recor% companies %evelope% relative %epen%ency on ?T@ $or promotion( 2. Secon%ly' to survive as a T@ channel' a%vertisers are essential( ?T@ manage% to success$ully attract a%vertisers' ,ho have become ,hole&hearte% partners o$ ?T@( Aor instance' PepsiCo has a long&term relationship ,ith ?T@' ,ith the intention o$ co&promoting both bran%s an% rein$orcing each other*s positions ,orl%&,i%e( 3. + thir% success $actor $or T@ channels is %istribution 4 programmes nee% to reach the vie,ers* T@ sets' either by satellite or by cable( Transmitting via satellite is relatively simple( Satellite /slots* can be rente% $rom thir% parties an% vie,ers can receive transmission ,ith a %ish( -o,ever' in most countries the number o$ househol%s ,ith a %ish is =uite lo,' given the high initial cost' varying $rom B!000 to B3000( There$ore' most commercial channels pre$er %istribution via cable systems' ,hich have a high level o$ penetration in most %evelope% economies( Cet getting cable operators to carry a channel o$ten proves to be an ar%uous tas)( ?ost cable operators have small regional monopolies an% nee% to be convince% o$ the nee% to ma)e e.tra costs to carry an a%%itional channel( ?any cable systems are technically limite% to a $i.e% number o$ channels an% there$ore nee% to %rop an e.isting broa%caster be$ore a ne, channel can be accommo%ate%( This gives cable companies =uite a bit o$ po,er' lea%ing operators in some countries to %eman% that commercial channels pay $or a slot on the cable( Problems an% challenges $or ?T@: !( +lthough ?T@ has been enjoying a virtual monopoly $or !8 years' increasing number o$ channel start&ups have been stea%ily rising in popularity' challenging ?T@*s virtual o,nership o$ the ?usic mar)et( 2( The success o$ local upstarts has lea% to many commentators an% e.perts in the in%ustry =uestion ?T@*s global relevance an% hence survival in the long& term( 3( ?T@ has not initiate% any ra%ical strategic changes' but is actively searching $or ,ays to gra%ually a%apt to the ne, competitive circumstances( ( ?T@ $aces strategic para%o.es 4 a para%o. o$ compliance an% choice' mar)ets an% resources' competition an% cooperation an% logic an% creativity( Sources: Financial times 20th Feb 2002, Broa castin! " Cable 2n Sept 2003' The 9conomist 28th Aeb 2003(

Islamic Television Project

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Developing a lasting Islamic (media) television network

Current Marketing Situation
Strengths and Opportunities: The current mar)et situation $or the Islamic me%ia' an% especially $or a television channel is one that may be %escribe% as long&,aite% venture' ,hich has been trie% an% $aile% several times $or almost $i$teen years( -o,ever' the mar)et con%ition is no, ripe ,ith technological a%vances as ,ell as $urther %eregulation o$ me%ia legislations ma)ing a conception o$ an Islamic television channel attainable( +s there are currently non&e.istent Islamic television channels' particularly in the 9nglish language' there is a huge %evelopment potential( Arom merely provi%ing vi%eo programmes on tape as a pro%uction company' to a ?e%ia net,or) an% everything else encompassing ,ithin that( This may inclu%e port$olio o$ television channels broa%casting on several plat$orms such as Satellite' cable an% even the >eb( Proving a constant supply o$ rich contents are in&house pro%uction companies' %ealing ,ith pro%uction o$ programmes $rom prepro%uction to postpro%uction( -o,ever' this may only be achieve% through a structure% %evelopment phase an% establishing a time&scale %evelopment strategy is essential to the success o$ such gro,th( This ,ill re=uire precision engineering metho%s being a%apte% into the business management' implementation an% $unctionality( Aor the bene$it o$ latter %ays' it must be note% that there are channels ,hich %o cater $or the ?uslims' but there is signi$icant %i$$erence ,hich is relevant an% this must be strongly %e$ine% as part o$ the Corporate an% ?ar)eting strategy( Weakness: The critical issue $or the survival an% gro,th o$ the channel ,oul% be pro%uction o$ an% constant stream o$ contents( There are no programmes that meet the broa%casting stan%ar%s' an% the majority o$ the available stoc) are lectures Das the 6O5 channel have $oun% to the cost o$ !2 million poun%s that preaching orientate% content ,ill %rive the vie,ers a,ayE( Secon%ly' there are only han%$uls o$ pro%uction companies ,ho are capable o$ pro%uction Islamic content ,hich ,ill grati$y the vie,ers( Thir%ly' the project is $ace% ,ith limite% resources $rom lac) o$ )no,le%ge an% e.pertise o$ people in the television In%ustry( -ence' the challenge to provi%e a real alternative to the current me%ia becomes greater( Threats: There are alrea%y attempts being ma%e by several sectarian groups $rom the ?uslim community to startup an Islamic television station( +s these sects alrea%y have e.tremist un%erstan%ing o$ Islam an% particular practice o$ the religion' this ,ill in%ee% un%ermine the e$$ort Dmostly singularE to establish a mainstream me%ium( Such channel startups by sects an% groups ,ill have business bac)lash ,ith %ilution o$ bran%' novelty an% mostly importantly the cause( The repercussion $rom lac) o$ the =uality in the overall content an% broa%casting e.perience is incalculable( Signi$icant interests an% goo%,ill o$ the au%ience ,ill rapi%ly be lost( +s seen in most cases in other Islamic projects' such as Ra%io Rama%an' magaFines an% recently alternative so$t %rin)s to a lesser %egree( Signi$icantly any blun%ers ma%e in the programming or broa%casting by these si%eline in%epen%ents' ,ill have %irect implications $or the mainstream Islamic channel' as the ITC an% later OAT9; may use this as prece%ence $or coming %o,n har% on Islamic channels' un%er various la,s inclu%ing terrorism act' racial e=uality act an% other la,s o$ the lan%( This is ,here pro$essionalism G strategic planning ,ill allo, the Islamic channel to remain one step ahea%(

Islamic Television Project

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Copyright2003

Developing a lasting Islamic (media) television network

The scope of Operations
Programming 4 Content G Pro%uction The content is )ing' an% high =uality' value a%%e% programming is the )ey to survival o$ a channel( The content is )ing because it is the true asset $or a television channel' an% it is the bac)bone $or the e.istence an% gro,th o$ the channel( This is because it is the content that %e$ines the channel an% %i$$erentiates it $rom the rest( To improve their chances o$ survival' broa%casters nee% more vie,ers in or%er to receive more subscriptions or attract more a%vertisers( +s the )ey is a better content an% content creation is very costly' it seems obvious that broa%casters have to ma.imiFe the revenue they generate $rom each content they have( They must select the best content an% generate revenue $rom them instea% o$ broa%casting anything that maybe available Dsuch as lo, =uality D@-S stan%ar%E lectures an% tal)sE or repeat the same material time an% time again( It ,ill not only %ilute the customer loyalty but ,ill %rive potential vie,ers a,ay( 1roa%casting 4 5istribution G ;ogistics 5eveloping an Islamic television channel an% eventually a success$ul net,or) is more that just ac=uisition o$ goo% content' but it is also about establishing a sustainable in$rastructure in or%er to %istribute the channel e$$ectively an% e$$iciently( This is not only critical to the channel*s survival but also )ey to the channel*s gro,th too( + strategy o$ sustainability shoul% al,ays be an% remain $easible an% practical' ,ithout ,hich the management' implementation an% %elivery o$ it ,ill be %i$$icult an% costly( There are )ey issues to tac)le' all o$ ,hich have short&term an% long&term implications $or the channel( The %i$$erence is bet,een success an% $ailure( These issues inclu%e the choice o$ broa%casting plat$orm 4 satellite' cable' Aree@ie, or even the broa%ban% me%ia( Secon%ly' the Con%itional access DsubscriptionE or $ree& to&vie, access( Thir%ly' the %elivery me%ium o$ %igital television' ra%io the ,eb an% even print me%ia nee%s to be consi%ere%( Ainally' location' location' location is critical( ;ocation %etermines accessibilityH accessibility is also limite% by language too( In broa%casting' location is resolute through satellite usage' The 9urobir% $or $ootprint o$ 9urope' -otbir% maybe use% to beam into +$rica an% mi%%le&east' TelStar $or North +merica an% +siaSat $or +sia an% +ustralia( -o,ever' this involves either a uplin) or relay system' i%eally a combination o$ both( COST is the primary $actor to the %ecision ma)ing o$ the broa%casting set&up( Channel IS;+? has %evelope% a broa%casting mo%el ,hich allo,s ma.imum transmission ,hilst ensuring the minimum cost' to almost $ive $ol%s %o,n( 5eveloping in$rastructure $or an Islamic television channel' that is $easible' practical an% sustainable( The programming strategy an% 1roa%casting Strategy illustrates ho, to %evelop /+ S2CC9SSA2; P;+TAOR? AOR +N IS;+?IC T9;9@SION C-+NN9;*( ?anagement G +%ministration The management an% a%ministration is the bac)bone o$ the channel( It is the core activity an% the programming an% broa%casting are periphery activities( >here the core $ails or collapses' the periphery ,ill cease to e.ist $or long( ?anagement an% a%ministration is $un%amental( The channel can be brilliant' but ,ithout management it cannot generate revenues' organise itsel$ or coor%inate its %ecisive activities( The success o$ the channel $rom its start&up to its maturity as a net,or) ,ill %epen% on the management $or vision' %rive' strategy an% %elivery( This starts $rom +%ministration to corporate level process' content an% conte.tual activities(

Please re$er to the /1roa%casting Scenario Report* in the 1usiness Plan II $or $urther rea%ing

Islamic Television Project

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Copyright2003