TV stations entering era of fiercer competition

TV stations entering era of fiercer competition

The Jakarta Post, Jakarta

Indonesia's mushrooming television stations are entering an era
of fiercer competition amid the uncertain political and economic
situation, a more selective public and the presence of foreign TV
programs in Indonesia, according to TV media observers.

Veven S.P. Wardana and Garin Nugroho said the presence of
eleven TV stations would affect the electronic media at home but
benefit the public.

Both were responding to the grand launch of Lativi TV station
here on Wednesday.

Garin said that eleven was too many because it would force the
TV stations to stage an all-out battle to gain as much income as
possible (mostly from advertising and TV program sponsorships) to
cover their high production costs and to achieve a break-even
point (for new TV stations).

"Longer-established TV stations RCTI, SCTV, Indosiar, ANTV,
TPI and TVRI have faced financial difficulties in covering their
operational costs; now, many more new TV stations are on the air
in fiercer competition. The increase in the number of TV stations
is not in balance with the growth of advertising," he told The
Jakarta Post here on Wednesday.

The new TV stations are Trans TV, Metro TV, TV7, Lativi and
Global TV. Besides, Garin said, the capital-intensive TV stations
must compete with regional TV stations in the provinces,
including Bali and Papua, and foreign TV stations such as CNN,
MTV and many others in neighboring countries Malaysia, Singapore
and Australia.

"There will be victims of the fiercer competition in the near
future," he said.

Veven regretted that almost all TV stations frequently
sacrifice the public interest in favor of competition for
advertisements.

"But, the longer the TV stations runs their programs, viewers
will become more selective and will no longer watch sponsored
programs, preferring those that cater for viewers' interests," he
said.

Both Veven and Garin were of the same opinion that all the TV
stations were still searching for their own identity.

"The TV stations have almost identical programs. Most
entertainment programs, especially films, are imported. It is not
a hasty conclusion to make that TV station programs are radio
programs plus pictures. They have yet to show their strength or
difference from radio stations," he said.

They also said that TV stations lacked qualified human
resources to manage programs to attract more viewers.

Meanwhile, Abdul Latief, owner of Lativi, said he was fighting
hard to meet his target of preparing more domestic programs in
the coming year.

"We are growing to be a national TV station, with 60 percent
local program content and 40 percent foreign programs," he said,
adding that he had invested Rp 60 billion in the TV industry.

He added that he was optimistic that the TV station would
reach a break-even point within the next four years.

Latief, also a former manpower minister, acknowledged he
enjoyed the competition and would survive it.

"We are training our human resources to be more qualified in
managing programs, especially local ones, and to prepare a more
investigative news presentation. Our main mission is to provide
educational entertainment and accurate news for the public," he
said.