MARKET

Since their introduction to Sri Lanka, TV networks have been popular and powerful channels for broadcasting news, disseminating information and providing public entertainment. The public, who previously depended almost entirely on the print media for these, was thus offered a wider choice. Networks such as Sri Lanka Rupavahini Corporation (SLRC) could break the news to the public as and when events occurred, which was a significant advantage. At the time SLRC was launched, the only other channel in existence was the Independent Television Network (ITN) – a fully state-owned entity. SLRC, which was also state-owned, enjoyed a duopoly in the early years of TV in Sri Lanka.
 
Due to its wider audience, TV attracts more advertising than the print media, which is considered a key competitor in relation to news and the dissemination of information. In addition to news, TV networks such as SLRC are able to provide entertainment through films, tele-dramas and documentaries – which make the medium so much more interesting to viewers. TV has had a significant impact on the local entertainment arena and has affected the Sri Lankan cinema industry, which was vibrant before the advent of TV. Patrons of the cinema, in their numbers, have demonstrated a noticeable preference to watch TV in their homes, instead of going to the movies – primarily, perhaps, because of the convenience TV offers.

The dual role of TV as a medium – both as an information disseminator and entertainer – has helped networks such as SLRC to garner a substantial share of advertising spend. Presently, SLRC – which commands 30% of market share in terms of viewers – is in a select group of companies that earn revenue in excess of one billion rupees. Importantly, most of SLRC’s advertisers are not state-owned entities but private-sector organisations, which see TV in general and the network in particular as a viable marketing medium for their products and services.

Every other TV channel operating in Sri Lanka could be considered a competitor to SLRC, which telecasts content in Sinhala, Tamil and English. Using modern technology and sophisticated equipment, the transmission could be viewed anywhere in Sri Lanka by anyone who has access to a TV. The wide reach of SLRC has helped to generate and grow competition in the industry. With the entry of privately owned TV networks and channels such as MTV, Sirasa, Shakthi TV, Swarnavahini, ARTv, ETV and Derana, SLRC is now facing increasingly intense competition. SLRC presently operates two channels: Rupavahini and Channel Eye.

SLRC has achieved Superbrand status not only because of its technological edge and wide reach. Its success could be attributed mainly to the network’s committed and talented staff, numbering around 950. The channel employs experts in the field of telecasting, who are well remunerated for their services, in addition to bonuses and perks. Despite moderate political influence vis-a-vis its operations, which impacts on the product mix, SLRC has grown from strength to strength and is one of the few state-owned companies to have recorded revenue exceeding one billion rupees annually. Unlike other subsidised state-owned enterprises, SLRC is self-financed – it does not depend on government funds. The state’s policy of minimal interference in the affairs and management of SLRC has helped the network’s performance in achieving Superbrand status.  

 

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ACHIEVEMENTS

As a state-owned enterprise, SLRC is the only government-owned institution to have achieved Superbrand status. With its revenue exceeding one billion rupees for three consecutive years, SLRC has grown into a giant in the TV industry, despite politics impinging slightly on its performance – which is a significant accomplishment in itself.

SLRC has taken on the competition from vibrant, privately owned TV channels to achieve a 30% market share in terms of viewers as well as advertising revenue. Employment strategies which ensure that talented human resources are recruited has helped SLRC to produce creative – even unique – programmes, which have earned the channel its widespread popularity. SLRC is a family channel: all age groups, sans gender differentiation, generally enjoy its diverse content. The network’s twin channels are focused mainly on airing educational programmes, while family entertainment and sports are also offered. Talented and committed employees have ensured the quality and uniqueness of SLRC, which celebrates its 25th anniversary in 2007. The employee-retention and rewarding strategies of the network have enabled it to forge ahead of the competition.

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HISTORY

SLRC was established in 1982 by an act of parliament to broadcast programmes at a national level. It was gifted to Sri Lanka by the people of Japan. The network’s primary mandate is to air educational programmes and news. The government expects SLRC to maintain very high standards and telecast programmes that are of interest as well as value to the public. It was the second TV channel to be launched in Sri Lanka – the first being ITN.

At inception, SLRC comprised one channel: Rupavahini. It was well equipped, consisting of two studios – one of 100 square metres and the other, 200 square metres – a main control room and two transmitting stations, located at Pidurutalagala and Kokkavil. The network, even initially, catered to about 90% of the country’s population. Later, following two grants from the Japanese government, SLRC expanded its operations.

Traditionally, the government appoints the Chairman of SLRC. Its hierarchy comprises a governing board consisting of four professionally qualified members. The Chairman and the board appoint a Director-General and the corporation’s senior management, who together are responsible for SLRC’s operations. The government has ensured minimal political interference so that the management can function with a high degree of independence.

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PRODUCT

At the time of its launch, since only two TV channels were in operation, Rupavahini enjoyed a duopolistic industry milieu and was very much in demand. New technology ensured that its telecasts were clear and its content attractive to viewers. Due to the lack of competition – except that posed by each other – SLRC and ITN were veritable cash cows and contributed significantly to state coffers. SLRC’s tariffs still reflect the highest advertising rates in the market, because it is a popular channel that has been around for almost a quarter of a century.

The composition of the TV industry has changed with the advent of private channels which have added variety to, and broadened the scope of, programmes. In keeping with industry standards, SLRC increasingly focused on providing quality programmes which are creative and interesting to the viewer, to maintain its market share. The network records an approximate 10% growth in revenue each year – which is derived by virtue of the fact that SLRC has a well-balanced product mix in comparison to its competitors.

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RECENT DEVELOPMENT

SLRC is planning to diversify its business and enter the satellite-TV market in the near future. It also intends to move into film production on a commercial basis. Like any other brand in the market, the network is constantly exploring strategies that will help it to stay ahead of its competitors. It is under added pressure because it has to retain its market leadership in the local TV industry. The brand is now facing stiff competition, due to market fragmentation, with the introduction of new channels and cable-TV networks. SLRC hopes to market its facilities as a production house in future and capitalise on its talented workforce to expand into new ventures.

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PROMOTION

SLRC is a medium of promotion in itself and does not need advertising to market its channels. However, since any value addition will attract more viewers, SLRC invests indirectly in promotion through funds spent on motivating its workforce. Investment in new technology can also be considered a means of indirect promotion, since this also impacts the network’s performance. SLRC is committed to Corporate Social Responsibility (CSR) as a means of enhancing its brand image. It is highly focused on this strategy and claims to lead the industry in terms of CSR initiatives.

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BRAND VALUES

The employees of SLRC take media ethics very seriously. This state-owned entity has a very strict media policy and will not air programmes or advertisements that are considered culturally offensive. Every programme aired has to be pre-approved by a board of selectors whose members are appointed by the Chairman of SLRC and the main board.  The network maintains high standards in relation to its competitors in this regard, because a cultural focus is one of its key brand values. SLRC has vowed that it will never compromise on culture.

The network believes in honest reporting and is focused on publicising accurate information. In this regard, it plays a very responsible role – especially as a government-owned entity. Its two channels focus on producing quality programmes which are creative and interesting to viewers. Talented employees at SLRC work towards keeping the channels ahead of the competition. A focus on human-resources development has ensured the retention of talent at SLRC. Brand values such as creativity and innovation, and employee and cultural focus, have contributed towards projecting SLRC as one of Sri Lanka’s Superbrands.

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THINGS YOU DONT KNOW ABOUT RUPAVAHINI

♥ SLRC, which was gifted to Sri Lanka by the government of Japan in 1982, continues to lead the TV industry with a 30% market share, both in terms of viewers and advertising revenue.

♥SLRC is a state-owned enterprise with revenue exceeding one billion rupees annually.

♥ SLRC is planning to enter the satellite-TV market in the near future. It also plans to venture into film production and commercialise its operations as a production house.  

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www.rupavahini.lk