On the face
of it the following two tweets from members of CNN-IBN looks innocuous and
routine programme information. One from Ruchira Singh, who handles the Social
Media accounts for them and one from Rajdeep Sardesai:
A closer
re-look based on other information that is now coming out of the TV18 group
tells a deeper story. Why on I-Day would a news channel just leave a good part
of the day with recorded programmes of Bollywood songs? That too some of it in
the prime-time category! There seems to
be a deep churning of sorts within the group. Their CEO, Dilip Venkatraman, has
reportedly quit last week and internal sources have been leaking stories of
massive retrenchment at the group, fashionably styled as “restructuring”. Here’s
what The Hindu reported on
August 16 (excerpts):
“Highly-placed channel sources, all of whom insisted on being
anonymous, have told The Hindu that the network will ‘cut costs and
human-resources by around 30 percent in each department’. There was no
confirmation of the figure till late on Thursday evening, with authorized
officials refusing to comment. Insiders said it was ‘almost certain’ that
contracts of over 150 employees in IBN 7, and over 200 employees in CNN-IBN,
would be terminated. A knowledgeable source said, “For a story, a reporter,
cameraperson, equipment, a vehicle, a driver has to be deployed. Costs in each
of these categories – staffing, production, and infrastructure – will be cut.”
It is learnt that senior editorial staffers in key divisions like sports,
entertainment and research may face the axe”.
A business
sustains itself on a proper revenue model and survives on earning some profits for
its stake-holders. In financial terms a 1000-day test is applied for loans and
funds for a company to break-even and earn profits. Considering the IBN group
was launched in 2005 (although their CNBC channel was launched earlier) it has
been 8 years as the group kept absorbing poor financial returns backed by more
and more investments in times of trouble. More inflow of funds may keep a
business from folding up but not necessarily ensure profits. In such scenarios
it is usually the frontline and smaller earners who pay the price.
Remember
when Jet Airways sacked some 1900 of its employees overnight? They had
to take them back due to protests by the employees and major coverage to the
protests. In contrast the retrenchment at IBN is neither going to be covered by
their peers in media and will be reported frugally in the print media. It has
always been the case that when companies run into trouble the ones to be sacked
most easily are the lower level or frontline employees. In the case of Big
Bazar when they faced financial problems the first ones to be sacked were the
check-out counter employees and even the bagging-boys at the counter. Actually,
these employees are the least expensive in the organisation. The top guys who
collectively draw a package almost equivalent to hundreds of the lower level
employees usually get to stay.
The problem
is not unique to the IBN7 group. Other channels too are facing the music. NDTV,
which has been in the red for many years, retrenched many employees sometime
back. The first problem is lack of programming itself and the second is lack of
a proper revenue model. While claiming to be national channels the IBN or NDTV
are nothing more than local Delhi channels. Their programming is centred merely
around Delhi and about politics. When the season is on they throw in Cricket
and a regular dose of Bollywood. The rest of the country hardly exists. For a
national channel low viewership is a serious problem. When the Assam riots were
on, Rajdeep Sardesai famously said “tyranny
of distance” as the reason for not covering the story on time.
If one adds
up all the “news” content of any TV channel the actual content would not amount
to more than one hour of news. The same news gets recycled for the rest of the
23 hours since they like to believe a 24X7 channel is the only competitive route.
For an international channel like CNN, which was the first as a 24-hour cable
channel, the reporting starts from around the globe. For Indian viewers, it
usually starts from Hong Kong or Singapore, then to London, to New York and
then to their main studios. Thus there is a world-coverage of news and
important events. Even so, CNN itself has been sliding in ratings in the US
too. In contrast the Indian news channels which call themselves “national” don’t
even get viewership from all across India. English channels like CNN-IBN, NDTV
or Times Now are not aired in many B-category cities. Most of these cities have
local language channels or in the North they have the Hindi channels providing service.
And where the business channels are concerned they really don’t have much news
to offer. Whatever share prices or business information they scroll at the
bottom of the screen is what most viewers watch them for. That scrolling part
is now being done on all news channels so specialised business channels also
make little sense.
The biggest
crime of all is a lot of inaccurate news and fake news that is frequently aired
by these channels. That and the propaganda-based programmes and debates which
have taken a beating at the hands of Social Media. Some of these channels have
built themselves around “personalities” alone and when these personalities get
tainted by bogus programmes and comments the channel takes a beating too. It
would be more honourable for a channel to sack editors and anchors tainted by
such deeds than to sack lower level employees. Some of the people tainted by
Radiagate still continue in their jobs as if nothing happened. It now appears
that a channel will find it hard to survive merely on English news content as
it definitely seems to reduce the reach. Some might decide to go bilingual
which may be a better option. What is happening to the news channels is quite
similar to the airline industry. Hundreds of air-hostess and cabin-crew
training companies had come up all over the cities when the airline boom
started. Except a few, almost all of them have now shut shops.
Rajdeep
Sardesai may appear in promos with grand lines like “credibility over chaos” or “news
over noise”. But advertisements don’t sell. I am not sure most viewers
accept the credibility part. I am not sure most viewers accept even the news
over noise part, considering CNN-IBN has one of the shrillest anchors in TV
history. As for credibility, the group may have to first wonder what got them
into “chaos” themselves and how to get out of it. They may sack hundreds of
lower level employees but the chaos and noise doesn’t come from them. The bottle-neck is always at the top of
the bottle, not the bottom.







