"Ratings, Revenue and Reputation are the building blocks of news business"

Avinash Kaul has recently been elevated as the Chief Operating Officer (COO) at Network18. Exchange4Media interacted with him about News18, the largest news network that has been launched across 26 states in 15 languages, and the changing environment of news business in India.

Is there a sudden shift towards regional language channels? Is it no more just Hindi or English?

News viewing has evolved over a period of time. It is not a sudden shift towards regional content consumption. We took the decision of taking all general news brands under our umbrella brand News18. The journey started 18 months back. Now an omnipresent brand has been created which is the largest news network in the country.

There is tough competition in regional space. Right now, we cover 26 states. There are 5 to 6 regional language news channels in every state. News18 caters to not just national viewers but also viewers from other countries. The strength of the network lies in its international alliances, vast reach and over 1,200 reporters. We provide a range of content, from most hyper local to national and international news. For example, people in Odisha are primarily concerned with the things that are happening there locally, so they consume 80 per cent local news and maybe 20 per cent national news. Whereas in Kerala, consumption of feature news is higher and probably the share of national news is much higher and there is interest in international news too.

In the highly competitive news channel business, is it easier to make profits by increasing the number of channels?

The profit in this business depends upon who the player is. Players like us are better prepared to face competition. For standalone channels, it can be tough because they are present only in one geography, and in changing circumstances, they can't cope up as they have limitations in investments. After 10 years, when more investment is needed, where is the second form of funding going to come from? 

We are the largest network today and there are few other networks that are doing decently good like ABP and Zee. Television news is here to stay. More than hundred million people still do not even have a TV set. As the accessibility to television increases, TV news will continue to thrive.

Are people going to buy TV sets or will they straight away move to internet-based devices?

People already have internet connection, thanks to the data cost going down. Content is consumed on TV and mobile screens simultaneously. Just the way newspapers are read along with watching news; linear mode of news consumption is changing. Network18 is agnostic to the way in which content is consumed. We are content producers and our aim is to be available in every form of media that an individual may want to access.

What is happening is that people divide their time across different media. If you are spending one hour consuming news every day, you are not going to make it two hours because of a new device. It will simply get divided between the devices because sometimes you may not like the linear format where you have to wait for a thing to happen. News is unlike entertainment. News is live like sports. You cannot record news on your connection and watch it the next day because by that time the news would have become outdated. However, you can do this with an entertainment show.

Some news channels lay off employees when improving technology. How does News18 plan to handle such things?

When you synergise operations, you look at driving efficiency out of it. The whole reason of having a network of 16 general news channels is to derive maximum benefits for the entire network, not only from a cost point of view but also talent, technology and infrastructure. 

Technology changes dramatically and one has to keep up with the pace. In new age media, you cater to not one screen, but two screens. So as the businesses move, people will have to evolve and learn new skills sets. Being a part of a network like ours, employees get a chance to upgrade their skills and be a part of innovation. We provide that platform to individuals who aspire to grow in the industry. 

As a full-fledged network, how do you prioritise your time across all the channels?

The interesting part is that one cannot prioritize. A regional channel in Odia is as important to us as our flagship business channel CNBC-TV18. We have well defined editorial structures in place. Individual editors run each of the channels and they have their respective audience. An effective structure that allows independence to every brand is the most important priority.

Do you think news can be put behind a pay wall?

There was a time when everybody thought nobody will pay for news. But then there are too many sources and you don't know who to trust. So the brand will then be the guardian of the things that you know are coming from a trusted house.

This is a time when like a child, you get too many toys, you get distracted with everything. But over a period of time, you get settled with only one or two of your favourites and that is what in the longer run this business model is all about.

Do you think the editorial team is under a lot pressure due to business constraints?

Pressure and compulsion are two different things. Of course there is pressure all the time because of ratings but there is no compulsion to do things in a particular way. A network like ours does not work in extremes. There are editorial structures and processes in place and we believe in presenting a balanced view. There has to be a rationale to every story. Thus, the tendency of these theatrical things is fairly under control. On the other hand, in standalone channels, where the editors entirely own the rules, these calls are taken in a very different magnitude because those are singular calls. There is a lot more restrain in large networks.

Ultimately there are three things that you have to look in news business: Ratings, Revenue and Reputation and reputation includes credibility. You have to balance all the three things. Sales people also have pressure, but we don't do theatrical and unethical things.

Although, the recent Cobrapost expose shows a different picture...

There are exceptions in everything. But exceptions do not become a rule. It's all about the choice one makes between the three Rs and how one balances it.