Discovery Gets Ready To Reach Out To Schools

Discovery Communications India, the Indian subsidiary of the $1.5 billion worth US-based Discovery Communications

Inc, will invest between Rs 2 and 3 crore in marketing initiatives aimed at creating brand awareness about the channel among school children.

In order to develop the subscription money as the second viable stream of revenue, Discovery India is adopting a new strategy of creating a demand among the viewers for the channel rather than being left to the discretion of the cable operators.

The Discovery network consists of the Discovery Channel and Animal Planet, both pay channels.

The network is targeting a 50:50 ratio between subscription and advertisement revenues in India against the present 30:70 ratio in favour of advertisements

 

Speaking to Business Standard, Discovery Communications India managing director, Kiran Karnik, said "The company is growing fast, with a 30 per cent growth in subscription revenues and a 70 per cent growth in advertisement revenues. Though the company is expected to break even in the next couple of months, we would like to increase the revenues generated through subscriptions."

Since both Discovery Channel and Animal Planet are digitally encrypted, a decoder to access them is needed.

On an average, cable operators pay Discovery India a maximum retail price of Rs 7.50 per month per connection and Rs 5 for Discovery Channel if taken as a stand alone channel.

"In the next five years multichannel households in Latin America, Europe and Asia are projected to grow by nearly 40 per cent. We would like to be part of this growth," said Karnik.

To tap the vast market among school children, Discovery Channel has initiated an award for schools excelling in various competition conducted by Discovery. Under this initiative, the channel would give grants to three schools, entailing a cash prize of Rs 1 lakh each as prize money to install a yearly scholarship for the most outstanding student.

Globally, the Discovery Channel has witnessed a 183 per cent growth in brand awareness over the last three years with a cumulative reach of 403 million households. In a survey conducted by ORC Brand Perceptions sampling 21 countries, Discovery's viewership among global network brands stood first with a whopping 84 per cent viewership, ahead of ESPN and MTV.

"The present, initiatives by the channel in terms of launching new programmes and establishing awards for scholarly excellence will add to the channel's expansion plans in India" said Karnik.

Discovery reaches 15 million viewers in India and is advertised worldwide by 365 brands belonging to 150 companies.