Political India: Engaging America

Battles Begin

As the Times of India (TOI) plans its foray into Tamil Nadu later in 2005, the Deccan Chronicle launched its edition in the state on March 28th this year. Its start has received a mixed response, and the public awaits the next salvo to be fired- will it be from their powerful rivals in the state- The Hindu? Or will the TOI cast the next stone? We watch as the war unfolds...

Comments:

The terrain of the print media landscape is gradually changing with more incursions across long-respected territorial frontiers. So far as the Deccan Chronicle's (DC) Chennai edition is concerned, it is too early to tell whether they will:

1. Slip comfortably into second place, displacing Manoj Sonthalia's New Indian Express
   
2. Actually threaten the readership base and advertising revenue collections of The Hindu
   
3. Do one of the (a) or (b) and still be in a position to enter a bloody war between the two giants who may begin their conflict by the end of 2005- The Hindu and The TOI
   

The reason that it is hard to make any predictions about the DC are two-fold. First, its IPO war chest may well help tide over medium term losses, even severe ones, since it managed to raise a good 130-155 rore rupees (106-126% of its total turnover in March 2004). The second reason is that the DC is new to the market-entry game on such a large scale, and this game is unpredictable even for relatively seasoned players like the TOI.

The battle between the TOI and The Hindu is likely to be a more dramatic affair. The Hindu has come out with its new look, and this would appear to have gone down well in public opinion. However the extent to which a cosmetic makeover can alter a major newspaper's fate is debatable. Having said that, the real challenge for the TOI will be to wean away readers for whom The Hindu is more than a newspaper- it is a way of life and a lasting institution. And that, logically, would imply that the newspaper has fairly deep pockets as well.

The one factor that might set this battle apart from earlier ones that the TOI has engaged in is that The Hindu may not follow the HT's example and embark on an internecine price war. This is bearing in mind that the readership segment of The Hindu does not massively overlap that of the TOI, unlike the HT.

As both the TOI and The Hindu are not publicly owned, their marketing strategies are also more closely guarded. Only time will tell us which carcasses shall litter the battlefield.

Grapevine:

MJ Akbar is pleased with the way the DC's launch has panned out.

Background Stories:

Business Standard: Battleground Tamil Nadu: The coming newspaper wars

Dancewithshadows.com: Times are a-changing!

Detailed Stories:

The Economic Times on The Deccan Chronicle IPO and prospects in Chennai

Dancewithshadows.com: The Deccan Chronicle in Chennai

Businessline (The Hindu Group) on The Deccan Chronicle IPO and prospects in Chennai

Reachouthyderabad: TOI enters H'bad

Dancewithshadows.com: TOI to start new 'serious' edition in Mumbai

Exchange4Media: A Mixed Bag for TOI

Agencyfaqs: TOI's upcoming Chennai launch

Agencyfaqs: Hindustan Times (HT) revamps, prepares to enter Mumbai

Dancewithshadows.com: HT is going to Mumbai