Private TV stations gearing up for tough competition

Private TV stations gearing up for tough competition

Annastashya Emmanuelle, The Jakarta Post, Jakarta

The addition of two more private stations -- TV7 and Trans TV
-- means that a total of nine television channels are now
crowding the airwaves. Two more stations, Lativi and Global TV,
are expected to follow suit by the end of this year.

With so many different channels, including state-owned TVRI,
the competition for advertising will certainly become a headache
for the stations.

But the Indonesian Advertising Agencies Association (P3I)
chairman, RTS Masli, said the total advertising industry was
expected to grow by 30 percent in 2002 from the current Rp 9.717
trillion (US$934.3 million).

Sixty two percent of last year's total advertising (Rp 7.889
trillion) went to TV. The figure is predicted to grow to Rp 12.06
trillion next year.

Still, TV stations need to create more attractive programs to
win their share of the advertising market.

"If any station has popular programs, the ads will find it,
instead of the other way round," he said.

Despite the promising profits, TV channels must not neglect
their social mission to help educate viewers, said Bachtiar Aly,
a media expert from the University of Indonesia.

For the past few years, the country's television stations have
seemed to lack vision, he said, as they have allowed themselves
to become trapped into making similar programs to their rivals.

"Ideally, a television channel should have certain
characteristics derived from creativity ... market tendencies can
be controlled by the media," Bachtiar said. "As there are more
options for viewers now, hopefully TV stations will increase
their competitiveness in winning viewers by increasing the
quality of their programs."

The existing private TV stations are mostly owned by
conglomerates such as the Bimantara group, which is the major
shareholder in RCTI, Trans TV, MetroTV and the upcoming Global
TV. TV7 is owned by the Kompas-Gramedia Group and ANteve by the
Bakrie group. Indosiar is partly owned by the Salim group, SCTV
by the Rajawali group and TPI by the Citra group, while Lativi
belongs to the A. Latief corporation.

All 11 stations will soon have to prepare for tougher
competition by maintaining high standards and reaching out to new
audiences with more innovative programs and program packaging,
while closely monitoring market demand.

RCTI would expand its audience, which is now dominated by
middle to upper class viewers, to the lower-income bracket, said
Teguh Juwarno, RCTI's public relations manager.

The station believes it derives a competitive advantage from
its network of relay stations that enable its programs to be
received nationwide.

"We see new emerging TV stations as a serious challenge, but
it's positive because the more players there are, the healthier
the competition," he said.

As for SCTV, it will react to market demand surveys, the
results of which are seen every week, while at the same time
relying on its prime programs, particularly Liputan 6, a news
program that has won many more viewers than other similar shows.

"We must prevent our viewers from being bored with our
programs. Therefore we'll gain a competitive edge by
accommodating their expectations," said SCTV public relations
manager, Budi Darmawan. "In this new, competitive era, only the
most creative will survive."

Meanwhile, Indosiar spokesman Gufroni Sakarin said his station
- which carried the most advertising, with 27 percent of total
revenue - was optimistic about coping with the challenge, as it
had many programs that accommodated every segment of the viewing
population.

Indosiar also plans to build more relay stations to achieve
wider coverage.

Expectations are conveyed by viewers to the TV stations.

"Most channels only offer wall-to-wall local or imported soap
operas. I'd like to see programs that are both entertaining and
informative," said 25-year-old Lovita Indah Sari, a private
company employee.

She admitted that she still followed certain sinetron
(Indonesian soap operas), but sometimes got fed up as most of
them had similar, simplistic plots involving either love affairs
or adultery.

Another viewer, Erwin Sugiharto, 33, said he expected to see
more unbiased news coverage, as he viewed some channels as being
partial toward certain individuals or organizations.

"It's sometimes difficult for viewers to gain an objective
view of a particular matter as parts of the news are edited to
suit the interests of a certain group," he said.