With increased consumer preference for news programmes, television news channels have grown faster than other niche channels.
News channels also command a more-than proportionate revenue share.
According to a TAM India data, the news category, with 2 per cent share of viewership, commands a revenue share of around 11 per cent.
Having sensed a huge growth potential, more than a dozen news channels are in the making. However, what would determine the future of news channels in India is "effective differentiation".
"India is a news hungry market, which is evident from the number of newspapers in the country. This is just the beginning of the revenue cycle of the business," Haresh Chawla, CEO, Television Eighteen India, said at the session on TV news at the mega entertainment conference -- Frames 2003 "Effective differentiation will determine the success of players.
"People want to look at multiple views on a common subject. There is only one reality and the presentation of the reality makes the maximum difference," he added.
G Krishnan, CEO of Aaj Tak, said that while 70 per cent Americans depend on television for news, the Indian market is largely dominated by the print medium.
"The other aspects that provide a huge potential for growth of television include the exponential growth of cable and satellite television, globalisation, technology and political instability."
"News today has become interactive and audience participation has become crucial. Apart from differentiation, diversification of news is going to be an essential factor," Krishnan added.
According to the KPMG report tabled at the convention, news channels -- in comparison with mass entertainment that is entirely programme dependent -- are more sticky with a higher channel loyalty.
