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Business feasibility study

ECUTIVE SUMMARY

DM Digital Global Television Network was founded in June 2005. A Brit-Asian Television Network, it caters to a niche market of Ethnic Minority groups structured overseas.

Broadcasting from Manchester, unlike its fellow market members, (majority operate from London) it has established itself as a household name with the Pakistani, Indian, Bangladeshi and a tiny percentage of other white groupings.

Based on the commercial phone-in model and advertising model the network has through the years witnessed an unsteady circulation of income. Despite financial difficulties, it includes survived and overtaken its competition; many of whom have shut down.

The network would now like to increase its company and start a TV station in Pakistan. Following this it programs to release in key towns around the world.

The second proposed plan the network would like to take is by increasing its services as a advertising provider and releasing a paper.

To launch economically in Pakistan is an expensive project, the networks strong fits in Pakistan makes it possible for this to be always a smooth move.

Other factors which have been analysed in this statement include the expected market, the proposed management steps they need to work at and the advancements they should think about to reach a global perspective.

I been employed by with this organisation going back 3 years. I'd like to state that since not much research has been carried out on the Brit-Asian market, I've used information offered through people who I have worked with and interviewed and research and data collected from various businesses such as Ofcom, PEMRA, etc. It is not easy to acquire as much information on GEO, although it is broadly use a good example throughout the report; it has however been substituted by making use of ex lover and current employees or freelancers from the Pakistani marketing.

Introduction

It is believed that only 1 in fifty business ideas are actually commercially viable. Therefore a company Feasibility Review is a highly effective way to safeguard against wastage of further investment or resources (Gofton 1997).

DM Digital Television set Network has been around operation, locally going back 3 years now. The Directors of the channel tag this as a success.

Ofcom reports from its total licenses offered from the time of 2000-07, 8% were for ethnic minority TV channels. Ofcom awarded 126 tv set licences in 2006 -109 for services transmit in the united kingdom and 17 for international audiences. This was down from the record 168 licences given in 2005 (Note that an released licence will not necessarily equate to a service start. Some channels are subject to delays yet others never log off the bottom). 1

Yet only 9 have were able to survive, yield earnings and continue steadily to remain on air. This network is one of them.

On 21 March 2008, DM Digital Global Tv set released a Press Statement regarding its proposed plans to expand globally. The assertion also issued stated the network was still assessing launching a Tv set channel and papers external UK.

The network focuses on Pakistanis. Other ethnic minority communities that discuss the viewership include Indians, Bangladeshis and a small portion of whites. A malfunction is illustrated below. Despite the fact there are stations for the Bangladeshi audience around, the viewership (despite the low percentage of Bangladeshi programs on the network) is high. Indians in Manchester and around the North-West region make up the second most significant group.

# Graph 1

Source: DM Digital Tv set Network

According to Farasat Khan, Brain of Programming and Creation, the network blueprints to increase to the international broadcast market and also start a fortnightly newspapers; their first international focus on for both these job launches being Pakistan. This being so for a number of reasons; the owners and stockholders being of Pakistan origins, the audience catered to generally again Pakistanis living across the world and most importantly - the Chairman's perspective of the Pakistani mass media market and its abilities.

Since there is a major space in the international tv set market for working-class and middle -category Pakistanis, DM views an possibility to offer Pakistanis and other ethnic minority audiences a greater variety as it pertains to television browsing.

Background

My research and study shows, that from the Brit-Asian stations that launched in UK, nothing have attemptedto make such a move or crossover yet. To format alternatives and discover new opportunities, this article will assess the professionals and cons of these potential business ventures.

Financial setbacks and the inability to put a specialist or technically-skilled team alongside one another have been a major setback for many broadcast media companies in UK.

DM network had low infrastructure costs, at the time of its kick off. It received grants or loans from the Pakistan federal government, private buyers (mostly family members of the Dr L. Malik, the Chairman) and for that reason had little problem setting up unlike other organisations.

The network manages on phone-ins to create money. Shows which range from music, reports to current affairs and even religious shows derive from the live call in model. Below can be an illustration of the types of programming and their revenue-generation for 2007.

# Graph 2

Source: DM Digital Television Network

Mr. Khan has indicated about the success and popularity the route has gained in the last three years, due to the fact its interactivity allows the layman to voice their viewpoints but remains uncertain about how it will endure in Pakistan.

Being in a position to broadcast in different languages and dialects spoken in Pakistan and also by transmitting live, the network shows a steady improvement in viewership. Its market may be over 60% first-generation British-Pakistanis or British-Indians from low-class and poorly-educated households for that matter, but that has proved to be a good here.

Let us analyze Pakistan first. With a population of over 164, 762, 040 (July 2008 est. ) the marketing in Pakistan is swiftly changing. In the mid1960s there is only one 1 broadcast network on air. PTV, the government-controlled and owned or operated network began transmission on 26 November 1964. 2 By July 2001 there were 22 programs on air. 3

Today there are over 60 private programs broadcasting over the nation. 4

Channels under the PTV umbrella continue steadily to operate as PSBs, while others are private commercial.

Farhan Kamal, Stepfromt. com records the Pakistan Television industry is a 10 billion rupee industry and the chance of new private channels can bring more money into the overall economy.

Ewa Jasiewicz, a freelance journalist specialising in politics of the Sub-continent says that '. . . given Pakistan's current politics situation and have difficulties for liberty of talk, the media have experienced a tussle over the last two years. Flexibility of talk is not necessarily loved. Privately-owned and popular systems like GEO Television and ARY Television set were purchased to cease transmission through the 2007 State of Emergency by Chief executive Musharraf. '

The general population broadcaster PTV halted its current affairs and media based programs. For days the broadcast was replaced by music videos. As the political scenario got better, regular transmitting commenced.

Mrs. N Malik, Director of DM Digital Television set Network and Brain of the news headlines Department believes very strongly that politics in Pakistan is something people cannot live without.

'The people of Pakistan rest, eat and inhale politics. . . . '

She also foresees a better income design if the network broadcasts from there. Khan disagrees with this.

Pakistan already has over three financially and politically strong marketing giants around. Relating to Malik, DM could be the fourth. But the broadcast quality these systems have is not at all something this network can match at this given time. Khan also explained the amount of money invested in not enough.

Sharafat Hussain, Retired PTV Professional says the budget these programs have annually is 12 times the existing budget of DM's entire network.

Giants like ARY Television set Network and GEO Tv set Network have been in living for over 8 and 6 years respectively.

GEO started out as a newspapers, while ARY actually started out in the retail business and then migrated onto to properties and real estate developments before spending and starting itself as a broadcaster.

Both these networks however established in Pakistan first and then shifted to International fronts- like USA and UK.

The smaller competitive programs or networks are easily bought out or eventually go bankrupt. The media market for broadcasting in Pakistan is therefore not easy to crack.

Malik feels the network's level of popularity here will help it endure the Pakistani market.

Let us now take a look at how big is the many of these groups within the population now and some interesting research notes from Ofcom.

  • According to Ofcom's recent research, within UK- Indians constitute 22. 7%, Pakistanis take into account 16. 1%, Bangladeshis account for 6. 1% 1
  • Records show that Television gets the highest volume of usage, at an in depth 17 hours per week. 1
  • Sample suggests that Pakistani parents appear to watch more tv set than other groups. 1
  • Nearly 1 / 2 of adults from minority cultural categories say that watching television is the media activity they might miss the most. 1

And so these reasons have added towards the success of the network in UK.

The network packed a void in the market for these cultural minority groupings, its unique business design predicated on Live and Interactive programming made it succeed in popularity however, not as successful in raising income through phone calls.

Yet since it proven in 2005 they have grasped the Asian market, while other stations have set-up and dissolved. Its selection of development has made up because of its lack of ingenuity, poor presentation and creation style (as a consequence to too little money).

'Commercial television produces audiences not programs. [Curran. , Seaton. , 212:1991]

Channels which launched later didn't command word the same audience loyalty and enjoy in profitable results despite having advanced technology and far higher benchmarks of programming. Aapna, Aap, The Family route were all once viewed as potential dangers when launching between 2006-2007. The stations, although well hyped and highly creative, proceeded to go bankrupt within the first 6 months.

John Hawkins(2001) quotes copywriter, Ed McCabe, in his book, The Creative Overall economy; 'Creativeness is one of the previous remaining legal means of increasing an unfair gain over the competition. '

I provided this scenario to Daniel Harrisson, who has worked as a Media Designer with several Asian organisations. Harrision is convinced this will not connect with the topic Brit-Asian broadcast market where you are as effective as your previous show! 'There is no room for creativeness! Everytime I try to be creative. . . neither the boss nor the audience come to conditions with it. . . it's like they need fast-food everyday for dinner. . . and are pleased with that end result!'

The network has long toyed with the idea of launching a paper. Previous pr announcements show they designed to accomplish that from May 2006. However the existing competition intended the newspaper wouldn't normally have a fairly easy entry. Development costs would be high. Although a majority of the team from it production-side would be utilised; it translated to raised wages. Hiring few but skilled staff for the look team. Printing costs were another concern. The theory was hence discouraged.

Product/Service

DM Digital network now hopes to durability itself in Pakistan. Building itself there, after that it wants to go on to kick off in key cities around the world. Because the network comes with an existing following in UK with the overseas Asian population, a large percentage being Pakistani, it expects to achieve the same in the united states.

For the audiences in Pakistan it is designed to provide a few of the already existing programming from its UK studios; thus lowering some cost of encoding and creation in Pakistan. The network will also create new development for media and current affairs, which is centered on the Asian sub-continent mostly and then programming devised for children and new entertainment shows.

But its services don't stop here.

Under the DM umbrella, they also plan to unveiling a bilingual newspaper.

Originally, the publication idea was foreseen for UK- but later discouraged and instead thought to be better suited and more simple for Pakistan.

This is unsurprising as Ofcom's Press Literacy Audit (2006) illustrates that in UK tv remains the public's major source for local reports. Reliance on tv news during the last ten years has increased as time passes (by 15 ratio points) just like the dependence on newspapers has dropped (by 15 ratio points). Therefore the idea of introducing a magazine for UK was not implemented up.

The magazine for Pakistan will be targeted at the greater elite section of the Pakistani community- unlike it Network. Or as Mrs Malik thinks, 'those who talk about a more liberal and modernised thought process. '

Newspapers in Pakistan are usually bought by the top class. English-based magazines are bought by a tiny fraction of this group, but each newspaper could sell for 10 rupees to 15 rupees.

To market and test these new services, DM has already employed a small production team in Pakistan's capital, Islamabad.

The team are constantly shooting and filing reviews, creating small reports testimonies and documentaries and even undertaking celebrity interviews whenever we can.

This has come under the eye of the Pakistani general population residing in UK and has received some gratitude for several reasons.

To test its strength and to see if the public will accept the channel in Pakistan, DM has been carrying out several roadshows in Pakistan. By sending some of the network's popular presenters like Mehboob Khan and Mazhar Bukhari for events such as the Independence Day activities, or even politics rallies, they have attracted attention successfully.

More lately, DM received extraordinary attention during the 2007 assassination attempt on ex - PM Benazir Bhutto. In this particular rally, team members of the DM Digital were hurt. This brought in attention from not only local and international press physiques but also everyone who sympathised with the victims.

The 24 hour coverage of Bhutto's death, her UK centered family's reactions, her party's woes and the occurrences surrounding the overall elections created more interest with the public.

Despite other channels providing the same coverage and time space to these situations, DM made a fairly easy entry into the market as it experienced constant live programs in which people could call in and share their judgment. Those seeing the coverage were keen on witnessing more of the channel. The opinions the Pakistan team received was therefore positive and revealed this test have been feasible. This also confirmed that 'the product inside the package is' eventually your 'audience'. [Curran. , Seaton. , 212:1991]

Prior to establishing a team at in Islamabad, Pakistan -the network carried out on an online survey as well as a similar study over the telephone.

The online survey reached a larger and more international audience. It had been surveyed on the DM Digital Television website for UK as well as Pakistan. Likewise, the study was also on the Pakistan Overseas Alliance Forum website.

From the approximated 450 people who got part it was noticed that several wanted to see programs based in Punjabi, they also wished the network repeated several of its shows and a huge percentage agreed they would like to start to see the a route in Pakistan. The response for the newspapers was rather low.

# Graph 3

Intended Market Environment

'Pakistan, an impoverished and underdeveloped country, has endured from generations of internal politics disputes, low degrees of international investment, and an expensive, ongoing confrontation with neighbouring India. ' 6

Unlike India, the mass media industry has not flourished just as much. While Bollywood and the Indian Television industry have established themselves within the united states and abroad, the mass media in Pakistan has a long way to visit.

'However, since 2001, IMF-approved reforms - especially, privatization of the bank sector - bolstered by large overseas assistance and renewed access to global marketplaces, have made macroeconomic restoration. Pakistan has experienced GDP development in the 6-8% range in 2004-07, spurred by gains in the professional and service industries. Poverty levels have lowered by 10% since 2001, and Islamabad has steadily elevated development spending in recent years, including a 52% real increase in the budget allocation for development in FY07. In 2007 the fiscal deficit - a result of chronically low taxes collection and increased spending - exceeded Islamabad's goal of 4% of GDP. Inflation remains the very best concern among the general public, jumping from 7. 7% in 2007 to more than 11% through the first few months of 2008, mainly because of rising world commodity prices. The Pakistani rupee has depreciated because the proclamation of emergency guideline in November 2007. ' 6

Broadcast

The network in UK has a solid base of elderly visitors, i. e. first generation working class British-Asians. Most of them still consider the country of their origins as home and consider UK as a second-home. Therefore, to them as research shows, their values and way of thinking still remain traditional and they also prefer observing something more suited for their thoughts and what they deem is suitable for their families taking a look at. Stations or broadcasts suited for whites are looked down upon.

Pakistan's people now can be broken up into two. One which is very orthodox, generally uneducated or with low literacy levels and stocks similar ideas with first-generation working course British-Asians. The second is pretty smaller but has today's degree of thinking and a far more westernised approach. Because of ethnical issues and even spiritual outlooks modernization and westernisation are frowned upon and classed as Un-Islamic.

Keeping the aforementioned classifications in mind, DM network will continue steadily to broadcast encoding for both. However, a significant portion of the programming will be for the more orthodox type.

Farasat Khan says this is merely since there is a bigger profit here. To gratify small but more westernised group there will be certain time of the transmission dedicated to their programming wants. The theory in catering for this specific niche market group is again another longshot for the future. Like GEO Television, which has a route dedicated towards encoding because of this group, DM would like to try its hands there as well.

Rules & Legislation handed by PEMRA however indicate any new entrant must meet the following criteria:

Applications for the give of a licence shall, in the first instance, be short posted by using the following criteria; specifically:

  1. economic viability;
  2. technical competence;
  3. financial capabilities;
  4. credibility and background;
  5. extent of Pakistani show in ownership;
  6. prospects of specialized progress and release of new technology;
  7. market improvement, such as improved upon service features or market principles;
  8. contribution to common service goals; and
  9. contribution to other cultural and monetary development objectives

Source: PEMRA

Print Media

With respect to Print marketing, the paper is directed at the elite section of society. Predominantly male, upper middle class and between the age groups of 25 and 65. Findings conclude they can afford it. They alone can perform the most reasonable usage levels from the end-products and all the more increase enough capital to keep carefully the project operating.

Again, with newspapers politics and economical matters sell somewhat than entertainment or international media for example.

Maheen Jaffrey, is a Mass Marketing communications student with the Quid-i-Azam University or college, Islamabad. She is currently researching as to the reasons the papers idea is faltering.

In her correspondence via e-mail with me she pointed out that the internet and with it online papers are fast gaining popularity over conventional methods such as newspaper publishers.

As an intern with the Dawn magazine, she said the key stories for guaranteed sales was always either politics or that of sociable upheaval.

When I asked her about the chance of DM introducing a paper in Pakistan, she seemed positive.

The print market according to her, 'could do with a change. ' She also said that if the publication catered strictly to the elite, people may buy it more because of its foreign-ness and not because of its studies on local information in Pakistan.

'International newspaper publishers are scarce; there are now few that can be seen at shops. So I feel there's a space perhaps this publication can load. '

TV Audiences needs

As Nazia Malik, Director of DM Digital Global Network has described. Politics is something the Pakistani audience cannot live without. Farasat Khan locations this as 'part of the culture' and daily routine.

I asked Nosheen Aslam, Procedure Administrator with the network to clarify this further.

On a regular day she says Pakistan homes have TV's started up since breakfast time. 'It is a member of family in lots of ways. ' Morning breakfast shows are targeted for family viewing. They normally consist of religious, political and news segments along with lighter sections such as Television gossips, celebrity news or even interviews and communal recognition issues.

The mid-morning slot machine games are usually the same but with more media roundups. Most systems like GEO and ARY will pressure Live newsfeeds in the middle of regular programming merely to create a feeling of being the first to report it.

The afternoon slots have programming focused on women and children. Into the evening musical shows of sombre nature and politics or current affairs show start broadcasting.

DM's intended development should offer similar encoding but if it is looking for Live telephone calls to be a part of the shows, it needs to work harder in projecting good quality coding.

Being located in Pakistan will surely stick it in a better position in conditions of suggestions for programs. They will be in a position to gain better access to materials, have more guests and quicker access to footage.

While channels based in UK make an effort to provide their local audiences as much news as they can from back home, channels in Pakistan look for international news stories or subject areas related to the Pakistani areas abroad- it sells!

Since DM is venturing to Pakistan, it can utilise its UK structured team to provide regular posts and also carry out shows that would suit the audience looking at in Pakistan. It needs to realize this is a selling point and makes it unique from other networks.

The people of Pakistan would be considering local Asian reports from Manchester or Bradford etc for example. It is of media interest to them and ensures higher TRP scores. The higher ratings translate to more clients.

Market Viability

Broadcast

Since the second option 50 % of 2007, the spending electric power of the Pakistani economy has gone down. Politics and communal unrest has created panic not just within the country but on the international front as well. Inflation has already reached 25% and consequently spending electric power is low. 7

'Politics at present are possessing the Pakistan market hostage. ' 7 says Asia Times Online.

The position of the press has changed. To the people from the government and the judicial aspect, the mass media is a sworn enemy, to everyone, the media is an ally and a voice. TRP rankings for networks such as ARY, GEO and PTV have gone up. The political circumstance- i. e. the express of crisis, Bhutto's assassination, the PPP's takeover etc have gripped the country even more into politics and much more media-crazy.

'Domestic reports coverage and general population affairs coding. . . are closely controlled by the federal government and usually have reflected firmly the views of the get together in power. ' 8

But television extends to 86 percent of the population as the same website studies, so to endure and create a place for itself, DM Network, must pump its content and production side more to be able to gain a worldwide appeal and provide how many other broadcast networks cannot. It has a dominating position in certain areas, but must realise that it'll need to adapt to other markets and not merely operate using its UK model and poor composition.

Malik has high targets from the move to Pakistan. Khan is uncertain DM will end up being a market leader.

There is various broadcast channels with similar models in Pakistan. He sees a shorter degree of expectancy for the network. From the 100% turnover the network is imagine to make in a time from its start date, he estimates the turnover as less than half.

Malik is convinced the 'foreign-element' in its coding will make it stick out. Khan feels this will not work altogether and more investment in labour must be put in.

Print

Research indicates this might not be the best time to kick off a newspapers in Pakistan. Although the broadcast medium is enjoying success, it is unfair to state that this maybe the only section of advertising enjoying it. The online media market in addition has witnessed growth but yet newspaper membership has reduced and remains low.

Nida Khan, students researching with the University of Lahore says from her derived research minimal consumed press format is the newspapers.

Her research covered a range of men and women ranging from university or college students to pros.

'From 1994 to 1997, the total quantity of daily, monthly, and other magazines increased from 3, 242 to 4, 455 but got fell to just 945 by 2003' 9

The prices of making and placing a newspaper collectively remain high and so do printing charges. The project would have to flip towards advertising to raise income.

He has also acquired broadcasting protection under the law for the network in Pakistan and has partially funded a commercial building for the network's office set-up in Islamabad and another in Faislabad, Pakistan, relating to Nazia Malik.

She further adds- because of his politics position and ties- the guy can reduce the length of time such types of procedures could ingest Pakistan and acquire licenses and clearances 'without position in a que'.

Just such as India, certain media organisations support or are carefully linked to political parties. Hence, it is not surprising to see organisations from various domains of media associated with political parties. The MQM Party is backed by GEO TV Network. Dr Aamir Liaqat, a presenter with the network was elected by the National Assembly in 2002. He is rumoured to get close links with the MQM Get together Head.

Competition

Broadcast

GEO and ARY are the main rivals in the Pakistani broadcast market. They are really stronger in conditions of coding and quality and also fiscally. Amongst the most watched and popular- GEO emerges as the marketplace leader (2006-2007) regarding to PEMRA source Jawad Ali Riaz.

#Graph 4

Source: PEMRA

GEO is by way the strongest maker of development in Pakistan. It generally does not are powered by a Live broadcast model during the day. Most of its development is pre-recorded and for that reason allows room for creativity and growth. There is a more powerful sense of management and jobs are carried out in a far more systematic manner. It greatly scores over its competition because of its current news studies, its politics talkshows and most of all for representing the greatest ratio of the Pakistani inhabitants. (GEO Website) It can give a more westernised type of programming, which has brought up scepticism about the network.

The terms it mainly selects to transmit in is Urdu. They may have attempted to broadcast news in British but have observed lower TRP scores.

GEO also offers been accused in the past of its politics bias and anti-Pakistani views. Yasser Akthar, a Manchester/Islamabad founded TV Manufacturer and Actor has previously worked with the network before.

'Sentionalism, is a good word you can use to spell it out their news stories. . . these are openly anti-musharaff and take satisfaction in showing it. . . why should a Television channel job such views?'

I asked him questions related to the kick off of the network. David Hazinski, the same man chosen to kickstart Aaj Tak Television set Network in India was employed by the Jung group to screen the launch of GEO. Aaj Tak is a highly popular based mostly network, mainly well-known for its dramatization of information, but very popular with the masses for this reason.

Hanzinski also caused the GEO management team and helped put together GEO's policies. He also assisted in training the staff officially as well as in conditions of creation work. 'Other pros were also recruited from America and UK for a good couple of months to teach the staff. . . many of our journalists come from a print background. . . . '

His judgment on DM's entry into the market was interesting.

'DM Digital is gonna generate income in Pakistan. . . lots of people like me travel from UK to Pakistan several times yearly for family or business. . . I know several of my children people watch DM's media and politics programs. . . the channel is gonna be popular with the audiences in Pakistan. '

Another type of competition comes in the form of online media. GEO and ARY websites are most struck in Pakistan. Their quick updates for reports are widely known says Arif Sheikh, mature controller at ARY Tv set.

PTV, the country's national broadcaster operates on an identical TV coding model as other sites, but its insufficient creativity and much more cultural bureaucratic form is a major letdown. Authorities controlled, it includes often been rejected the liberty of speech other networks enjoy and is so not as popular as the other sites.

DM Network, can add itself to this elite set of TV Sites in Pakistan by cutting back on Live content, buying development from other resources rather than taxing itself with so much production and outsourcing it.

'Creative companies never have only decentralized and devolved their working structures but have also externalized lots of the functions that were previously carried out in-house. ' [Davis. , Scase. 142:2000]

Nazia Malik says DM network will surely have an edge being a network based in UK as its development caters to the expat Pakistani or those that have family abroad and that's one advantage it includes over ARY. GEO or ARY do not. This unmet need for a bridge between Pakistanis in Pakistan and their family living in foreign countries would also be problematic for competitors to replicate.

Print Media

The GEO Network is in fact the brainchild of the Jung newspapers in Pakistan. The best print network at one time, it has since that time shifted its concentration from print out to transmit.

Predominantly available in Urdu and Punjabi, the Jung magazine has remained a top player since 1990s. This is because, like its sister transmit company, it considers itself a 'representative speech of the people' and 'responsive' towards its visitors, keeping it 'in business in a competitive market'. [Curran. , Seaton. , 278:1991]

Business Model Viability

DM Digital Tv set Network operates on the mixed business model in UK. It relies on its income through advertising and sponsorship and also essentially on phone-ins from UK and in another country visitors (model no 1). Although this as Nosheen Aslam, Businesses Manager claims is not entirely viable for the UK model or the Pakistan model.

One of the possible models DM's Tv set train station in Pakistan can be predicated on is the same one identified above or an identical model to people systems broadcasting in Pakistan (model no 2).

    1. Model no 1:

The model used in UK earns its income through advertising partially and through call-ins during concert events. Calls are billed at 50p or 1 or 1. 50 rates. IT train station obtained licenses to bill callers with these numbers in 2005. Because there was a dearth of stations at that time for cultural minorities, the call-in rates were high. But as time progressed, the market grew more competitive. The introduction of new programs witnessed a drop in phone calls and low revenue. Money brought up through advertising observed a similar style. But the closure of several cultural minority channels in middle 2007 and politics and social unrest in early 2008 brought in changes in the graph.

# Graph 5

Earnings in thousands

Figures provided by DM Digital Network

Nosheen Aslam, Functions Manager believes this can be an unsecure model to bottom part even the Pakistan channel on. With all the Manchester-based TV station, she actually is aiming at redirecting the model towards a far more advertising-based one. She believes it is safer plus more feasible to have programs sponsored and advertisements on air than to rely on the call-ins. She has established her observations on the deviation in revenue raised through the calls and factors that determine how successful or unsuccessful 25 % can be in yearly. The absolve to air position of the network is a big attraction for promoters and is a competitive benefits over other networks.

  1. Model No 2:

The majority of TV systems in Pakistan are based on the advertising model. The advertising model has demonstrated successful in making money in Pakistan. Not only are Pakistani programs predicated on this model but also foreign-channels or sites broadcasting in Pakistan. Indian stations like Star and Sony have realised this probable. Since Television set remains the most trustworthy medium and most popular advertising format- sites like Sony and many others are profiting.

As part of my research I needed called for further details from Star TV regarding their role in Pakistan, but was not given a response.

Neha Raghavan, Procedures In-Charge at Superstar One (Delhi, India) commented on Indian channels in Pakistan.

'I think there no more remains a 'frosty attitude' with Indian channels obtaining landing rights in Pakistan. . . since 2006 most are considering it and opportunities are checking. PEMRA has relaxed its restrictions. . . and yes many more Indian broadcasters are witnessing this in a totally new way. . . check out filmmaker Mahesh Bhatt even he is bringing his videos to Pakistan! We must realise there is a potential market there equally as other country. . . they appreciate our coding. . . our saas-bhahu (Mother-in laws and daughter-in rules) serials are extremely eagerly observed. . . even Pakistani programs are now endeavoring to duplicate them!'

Omer Jafri, Filmmaker and Advertisement model wrote to me about his encounters dealing with various private and PSB stations in Pakistan. 'PSBs don't really care about making moolah. At least with private programs there is some motivation and driving drive. . . advertising is currently a big deal. People normally be seated up and appearance at advertisements endorsed by big actors. . . but I can see plenty of channels here minting cash because of this. . . during prime time telecasts. . . even reports at nine you can expect to see 20 to 25 minute advertisement breaks. '

Nida Khan's research concerning advertising also remarked that among students especially, superstar endorsed products were better discovered.

One of the very most popular survey reactions for an advertisement you keep in mind was that in our top Pakistani actress Reema in the Lux soap advert.

Opportunities

Basing itself in other countries across the world where the Pakistani community is strong will push the network up in terms of popularity, elevating cash and revenue-collection so when the Chairman, Dr Malik desires- even closer to pushing himself in to the politics limelight.

In a brief interview with Saleem Malik, Director it was unveiled that along with the ability of growing as a network, the table wanted to use the network not merely for financial gain, but like several marketing organisations in Pakistan, for participation in politics within the country.

He also spoke of the value of the network to stream into another form of marketing and how it would also help the organisation gain a more substantial section of the market.

The network has also been viewed as a potential promoter of ' Manchester's expansion as the UK's latest multi-cultural broadcast centre' according to John Bozza, Arqiva's Head of Broadcast Sales. 10

It would also satisfy the federal government led Pakistan Electronic Marketing Regulatory Authority (PEMRA) in a number of aspects and encourage more funds from the government's part, insists Malik.

The PEMRA in its set of rules and regulations states the following for an ideal network-

'The network would bring in better potential clients of technical progress and introduction of new technology. This might in turn help with 'market progression' and invite room for new expansion and new services for the broadcast marketing in Pakistan.

It would also help add socially and economically by providing careers to several mass media practioners, a lot of whom who've lost their careers since the economic slowdown. Islamabad, the administrative centre city, has a high career rate but its counterpart Faisalabad has endured greatly since the military regime.

The chance to provide a program for promoting British-Pakistani Dramas and Level shows would also be considered a suitable venture corresponding to SKF Entertainment Ltd. In case the move to set-up occurs SKF is thinking about providing the network with broadcasting protection under the law to its productions.

The small organisation is a Manchester-based Pakistani press producer with a healthy consumer-ship within UK, Pakistan and the Middle East.

Similarly, the network can gain from other such businesses thinking about collaborating and achieving Pakistan.

UK-based Pakistani artists and bands would again see this as an possibility to reach audiences back home. Malik believes they would be thinking about working with DM to get their line of work advertised. For the network this might mean a regular flow of income.

A attractive opportunity which includes forced more people to watch DM is removing GEO Tv set Network from absolve to air around the world and in Pakistan from cable tv to dish. This move has kept several Pakistanis with another void in Television set programming, especially with the current situation when Pakistanis want an chance to say something.

Nida Khan, a Advertising scholar with the School of Lahore has been researching the role television takes on in the daily life of middle-class Pakistanis. Around 8, 000 people required part in her survey. This consisted of individuals from various strolls of life such as college or university students, their family members, members of everyone, professionals, those in administration organisations as well.

Her results show that:

  • News and current affairs shows are the most popular along with Bollywood videos.
  • News was most viewed through the 2008 Pakistan elections.
  • TV is the most respected media, accompanied by the internet, radio and then publication.
  • Amongst students- the most used multimedia format was the internet.
  • For Television set- Indian Entertainment stations were most popular. Celebrity Television India and Sony entertainment being the very best two.
  • 64% of folks who took part in the survey said papers in Pakistan were not affordable.
  • 49% said they would pay to call up on their favourite Television shows.

Keeping all these findings in mind, it therefore shows this can be a favourable amount of time in the marketplace to start a TV place. An interactive model with live call-ins during shows would be feasible according to the report.

Management Model Viability

Kanchan Thakur, an ex-employee of the network thinks the company suffers greatly due to its top-level professionals discouraging creative imagination and inner politics. A blend of the two create a mismanaged company with poor work culture.

Davis and Scase (2001), pinpoint 'a insufficient versatility and over-control' are problems which should not be still left ignored.

'The company shows signs or symptoms of very weakened management. Several departments are mismanaged and the staffs are cared for poorly. Those with university requirements are paid less and given more careers to do. While those people who have performed within the Pakistani multimedia- but haven't any education, too little creative imagination and sense of coding are cared for and paid better. We would never treat are staff so disrespectfully in Mumbai. Our work is never recognized and nor are our accomplishments. Us young girls are asked to sit down at the reception and monitor and greet friends. . . in the beginning they might ask us to make tea for these people or assist them. . . we weren't encouraged to work on the technical area inspite of possessing a degree! '

To succeed in this new enterprise, DM Network should figure out how to manage diversity and do so 'without resorting to ethnocentricity and stereotyping. '

Roger Cartwright (2002) clarifies 'how understanding each worker' can assure best ends in his publication, Managing Diversity.

Cartwright (2002) further dabbles on the study employed by Fredrick Herzberg. Publicized in 1962, Hertzberg's research implies 'inadequate money' was a 'demotivator' but so were 'recognition' and 'advancement'

Cartwright(2002) in his own studies indicates of an pattern into which most young staff fall. Teenagers getting started on a new job 'may well live at home, or in cheap rented accommodation, even though they will be expected to contribute to household expenses, a lot of their throw-away income will be spent on fashion items and personal belongings. '

This circuit is therefore known as 'Earn and Spend'. As they move towards settling down, they go into another cycle referred to as 'Earn and Save'.

But it is not possible here.

Thakur proved helpful at the organisation for 2 years. She was promised an increase in her salary three months from her signing up for time frame. She never received a wage-increase for the two 2 calendar year period.

'My salary was always overdue. . . I had to borrow money from friends. . . it was aggravating!' says Thakur.

Several organisations operate keeping social issues in mind. In India however, many organisations are powered by a traditional western model. In Pakistan and within the city, as yet there are several ethnical inhibitions. To many, it is frowned upon to see women of children working and associating with male acquaintances at the office. Additionally it is common for workplaces to be home to 'high-masculinity societies' where in fact the dominant 'ethos is the fact that one lives in other to work'. [Brown. 45:1998]

DM needs to study this more meticulously. To adopt a global perspective and succeed globally it requires to ensure it can treat its employees reasonably around and moreover job that image to its worldwide audiences.

'Organisational culture is a reflection of the way an organisation runs and it often reflects the key principles of the company. ' [Brown. 43:1998]

Raheel Anjum, Operations Director feels the network has lost some of its best workforce due to its working environment. He deems this as 'harmful'. 'Why is our sales force constantly changing? Coz every time we work with the right personnel- they are placed off by the terribly maintained environment and insufficient esteem they get. They leave. . . this gets us such a terrible name as an company. From the vicious circuit. '

From all of this Anjum proposes DM must create an improved environment with higher benchmarks than they have got here. Job roles are not defined clearly.

'In these circumstances, the organisation performs as a constellation of tasks and functions with loosely identified guidelines. [David. , Scase 51:2002]

Anjum feels the world in Pakistan is not as Farasat Khan makes it out to be.

'Although we are considering setting up bottom part in Pakistan. . . even there things are changing. Staff sizes are shrinking, but also- simultaneously they are becoming increasingly more multi-skilled and technically-stronger. GEO and ARY Television Networks have an identical pattern of coding, but to cope with time strains and the pressure of Live Tv set they often outsource their post-production work. '

Yasir Riaz, Director Branding and Strategy, GEO Tv set insists the team at GEO is highly-motivated.

'We are a people's company. . . even as we always say. We realize our team and teach and develop their skills. We work within an environment of transparency and ease of access and strive to create a feeling of security and bondage between staff. '

The role of women is also not identified plainly within these networks as well. Women appear to be chosen mainly as presenters or in administrative assignments. Hardly any women work in the creation wing and even fewer in post-production.

While this can be the truth in Pakistan, other countries do not share this work culture. Even India has more jobs for females.

Perhaps the network should consider looking at this matter and bettering on.

Other common management issues that I heard about while speaking to members of staff were those connected with the plank. On regular basis, it has happened that users of the staff experienced work interfered with by family or members of the family of the Chairman.

If they refuse or put of the task, these are threathened to reduce their jobs. That is a common case scenario with most Asian Television set systems in UK and Pakistan.

From the prevailing team that records reports in Pakistan for beaming in UK, Farasat Khan says most of them work overtime, often putting in more than 15 time a day. They live and rest at the studios.

This unhealthy work culture is also unethical and encourages wrong methods. The team in UK is often told off by the management and cited types of the overworked team in Pakistan.

Zia Ul-Haq worked formerly for PTV Global before joining DM Digital Global Network in 2005. He has worked for the network in Pakistan as well.

From his interview with me at night, I've translated some of his most popular issues with his job.

He was hired as a Sound Engineer but since 2006 has been working as a TV maker. While in Pakistan, he was asked to take care of responsibilities such as budgeting, camera work, reporting and even editing and enhancing. The majority of it he says he learnt upon this job. Purchases would be passed on to him from the Chairman directly. So the majority of the time the management team got no idea concerning where or what he was firing. He also says the family of the Chairman Dr Liaqat Malik would hound him constantly to do responsibilities such as film family functions, edit them and other such favours. When he'd refuse the bosses would be displeased and he'd feel demotivated.

Zia has over twenty years of Television experience. Though his skills are outdated, he's constantly updating himself and familiarising himself with new solutions. He says he is much less fast and successful as before- but he makes the effort.

He says he places up with the job only because of his wife and children whom he's the only loaf of bread champion for.

'Daily. . . they shout and backbite about one another. . . there are a few kids who wish to increase the environment we have here. . . but it will not change. . . the press in Pakistan is filled with inside politics. '

I brought this case up in front of Nosheen Aslam, Operations Director. She insists the hiring of correct people and those that have a clear understanding is needed. We need to hire more people in development who are multi-tasked and quick with new technology.

'Ideally in Pakistan, students or recent graduates would be perfect for roles in production. They are willing to learn and get insights. Plus they are faster in the field' says Aslam.

Sales and Marketing Strategy

Given the network's track record in sales and marketing within the united kingdom, the network has not been fortunate in boosting earnings. Failed marketing strategies and poor solutions and mishandling of clients has generated an undesirable name for the network. These are things the network should highly avoid a repetition off.

The Pakistan industry is very different from the Brit-Asian market. You can find more opportunity for revenue raising and advertising is making money for TV stations.

Brit-Asian organisations concentrate on small shops, locally centered Asian firms and offer them on air time plus adverts throw and edited at really cheap prices. This technique of practice is not feasible nor is it suitable for Pakistan. Advert rates need to be costed at market rates. The cheaper offers may certainly attract tons of customers but therefore it leads to a flooding of adverts and low expectations are created within the industry.

GEO and ARY have marketing campaigns which can be seasonal and incredibly Islamic orientated. This works with the mindset of its viewers and it flip falls better with its clients list. Clients from UK and USA pay heavy amounts to advertise with the systems during Eid festivals, the Holy month of Ramadan and Muharram.

Rizwan Yousuf, is a ex - TV Journalist with ARY and GEO TV. He also caused Prime Television as a Development Controller. He is currently researching Television patterns within the Asian sub-continent for a booklet.

In an interview with him, he explained of how networks like ARY often have Television set presenters perform dual tasks. They, corresponding to him are 'captivating' and also can provide more revenue generation to the business. Yet this technique is seemed down upon by Farasat Khan, he says that this is not feasible and often unethical. 'When a presenter works in sales and brings on clients. . . the customers are often his and not it station's. If they fall out with the management of the place and move on elsewhere their consumer list complements them. Just look at top presenters like Nadia Khan and Veena Malik. . . see there may be tons of politics involved with television. '

The network should try primary marketing exercises to help build the team's self-assurance and repport.

Ideally they should have one major job which could be a large budget live musical show including celebrities from Film & Music Industry from Pakistan & India. This event will be sponsored so covers its own cost. Main friends in this show would be the people from the business community and politicians. This can help us in starting a good romantic relationship with them. DM Digital will have to keep a little team of regular marketing personal and provides help the freelancers on the commission basis.

For the key market DM Digital will also be associating and covering spiritual events. This is a reach in Pakistan.

Management and Personnel

The network has before chosen several people because of its Manchester office. But the staff hired always possessed cashes with the development team.

The management workers also seemed to have a negative effect with the production team and frequently got involved in other decisions which did not concern them. This complicated the network's functioning and who experienced the expert to do what was often placed into question. As a result, the Chairman was often asked to make last decisions, for even the tiniest of problems to be fixed.

This however resulted in:

  1. Further divided workforces. It had been 'us vs them' syndrome according to previous worker Kanchan Thakur.
  2. The Chairman now makes all of the decisions, he does not seek advice from anyone nor does he retain in mind what the audience desires. It's his most liked presenters who cover the primary shows and get access to prime time slot machines. This often demonstrates unpopular and as a result has prompted favouritism.

This will never be feasible in the Pakistan market where competition is accumulating every minute. To control such situations and take care of issues as quickly and peacefully as you can, the network must hire competent personnel and ensure it does not overhire staff in this office. Overhiring would lead to more bafflement and chaos.

Ideally for the original set-up they might need two managers to handle the station. The managers would have to hold the following qualifications:

  1. The qualified candidate would need to maintain a Bachelors level in Press and a masters' degree specialising in Multimedia Management. Besides this the prospect would have to know the Pakistani advertising market and similar experience in the broadcast field.
  2. Findings in DM's circumstance show that selecting wrong people before has turned out expensive for the network. Often people too inexperienced or fresh out of university or college have strategized the incorrect moves and created several clashes with other departments.
  3. Hiring over experienced people can also work out adversely. The network keeps growing and needs new ideas rather than those of old rigid ideologies.

Besides this they will need to employ staff in creation: ultimately the perfect individuals because of this would students or fresh graduates from university or college.

Few theoretically strong and experienced people should be appointed to provide for the team and continuously train them.

Financial Assessment

The total amount of investment required for the original set-up year amounts to an estimated 950, 000. Main investments and bills are of equipment, wages, satellite and studio room sets and props for shows. The quantity expected to be put in in the first 12 months will be 941, 500, with the rest being kept away for emergencies.

Investment done in Pakistan will be done straight from DM Digital Network and little bit of funding from the private investors, like Rehman Malik.

As the business already has existence in Pakistan and also has a strong following in the UK, you won't face as many problems in getting advertisements and sponsorships. It also won't face difficulties in connection with the call-ins as the majority of the visitors who contact the shows broadcasted from the united kingdom will divert to the channel in Pakistan.

In Pakistan advertising and sponsorship rates are very most of about 500 per 30 sec advertisement on peak amount of time in comparability with the UK's Asian Market where per 30 sec advertisement costs is just under 10. But the network must charge less than its competitors in the beginning to obtain a market entry. Profits from the call-ins won't be approximately in the united kingdom as the high grade calls are billed at 14Rs/min which is less the 11pence /min. With all the advertising rate of predicted 300 per 30 sec location and even without gaining tons from the call-ins network can easily breakeven by the finish second one fourth of its start and can earn up to 1. 8 Hundreds of thousands making 100% revenue for the first calendar year as shown in the graph below.

# Graph 6

Risk Factors

Internal

Marketing:

The network will need to develop a good marketing and sales team, as many stations have suffered because of this. Channels like Channel Punjab have suffered several setbacks and as of Augsut 2008, records suggest the channel will be going into liquidation given that they have unable to generate any revenue from their advert sales even with high creation quality and popular coding.

Managerial:

Most of people employed in DM Digital in UK aren't satisfied with the sort of treatment they acquire from the management area. They say they are not at all motivated and are over burdened with a lot of work. But they still will work there because most of them are immigrants from Pakistan on work permits and getting work permit moved is very difficult. So making them feel even more caught.

If the network goes on to take care of its employees such as this in Pakistan most of its team will leave immediately and join the competitors. The marketplace name the network will receive will again be unfavourable because of its development in the long run.

External

Pakistan's media industry is definitely under intense pressure by the ruling authorities. Looking at the current and previous politics situation of Pakistan multimedia hasn't been given freedom of conversation by any of the ruling political people or even by the Military dictators.

Channels like Geo and ARY were shutdown as the federal government was deeply threatened by their programs. These were allowed back on air only once their main political shows were turn off and with even more new guidelines on coding for such shows. Defamation of Leader Pervez Musharraf was the significant problem the government encountered.

Pakistan's Human population, as said previously, is allocated in two categories -one is very spiritual orthodox and other is modern with european thoughts. The network has already been in big trouble with a big section of spiritual orthodox people on broadcasting a documentary which proceeded to go against their spiritual thoughts.

Qtv, one of the Islamic channels run by the ARY group was pressured to close down because one of these presenters said something which was from the religion.

The channel will need to therefore screen everything that has been said and broadcasted on air to comply with regulations of PEMRA.

Results and Conclusions

Judging by the aforementioned given research conclusions, I believe it is simple for the network to just do it with its plans to establish a TV stop in Pakistan based on an identical model regarding the UK one.

Revenue made by advertising proves to be more encouraging in Pakistan. With the relationships the network has in the government and the standards it satisfies for PEMRA, it would be possible for the firm to start.

Although there are a great number of new entrants in the Pakistan broadcast market that looks like they may be potential dangers to DM Digital, do not require share advantages the network does indeed.

It has established itself as an overseas broadcaster, people know of it and watch it. . . this kick off could now take it to a new level and help broaden its father or mother company along with assisting Pakistani broadcast mass media grow.

Journalist Rizwan Wahab hopes DM Digital will help break the monopolies of GEO Tv set and ARY Television in certain parts across Pakistan.

In Islamabad, Lahore. . . everyone want to believe is GEO. They are doing make good news. . . but so many of us journalists question their methods of dramatization. You will discover more ethical systems around. . . why then I ask do they not need such a viewership?'

Zaki Sarwadhy, a former staff with Dawn paper shares an identical opinion.

'Lots of our media is merely here to help make the federal government or some xyz minister happy and generate profits. . . and go home. What one reads in the publication or see on the TV set is an alternative case altogether. . . I have seen such routines happen. . . sadly I really believe this is a ethnical problem. '

Sarwadhy broadened on his comment by saying that there surely is a huge amount of corruption in the market. From acquiring licenses to obtaining exclusive footage. . . 'it's all rigged!'

Wahab and Sarwadhy both trust DM's network will pave just how for a more just broadcast market and breakdown monopolies.

In terms of print media, I believe this task should be reassessed once the market is more secure. With it station project, the near future looks appealing, but with the paper- it appears like the staff and team would be over-burdened if this task began simultaneously. Chances for again mismanaging a team or creating low or no incentive drives amongst staff will probably happen. The staffs need to first accommodate themselves with it station project. I really believe the feasibility of the newspaper should be partially judged on how successful the TV station actually is.

Perhaps by then there will be a different market completely or a better understanding of the web market, which seems more encouraging in Pakistan.

The other factors the network should work on include improving the work culture and stimulating creativity. Since the other systems in Pakistan are well-known for churning out the latter, (although some again criticise this and say it is only apeing the West or Indian sites) DM must evolve ways of combat this.

It would be a good approach if people of the UK team assisted in the initial training and development of the Pakistan Television set station. This might help the new team gain a much better understanding of the job and also familiarise them with the whole DM process. Yet I really believe the users of the team who go to Pakistan should be the ones that encourage the team there rather than those who'll demotivate them and additional lead to an unhealthy work culture.

In conditions of development, the network would gain definitely by focusing on more politics shows and current affairs shows. News is also another popular genre with the people that DM is concentrating on. It will not however alien the other age groups.

Nor if the network be totally dependent on moving the Live program or call in approaches altogether. There must be a fair share of both to allow room for better efficiency with the staff and also not have a continuous pressure on phone-ins.

Financially, the network can achieve a whole lot. Care and factor should be taken into employing staff for sales and marketing. The staff should get targets, conduct regular market evaluation and focus on a more systematic approach.

The network should now study from its failings in the UK and work towards a far more global approach. Range for profit and making a greater tag in the international market are incredibly possible. The introduction or market admittance time is perfect for DM's TV job and my research shows an extremely strong go-ahead signal for this release. With the newspaper launch, again, this is something could be a potential trendsetter in the market, but I believe now could be not the right time for it and buying it could lead to a lack of cash, over working of personnel and develop a great deal of mismanagement. Overall, DM's Chairman's motives to become a media baron are not highly sketched. They require time and the avoidance of recurring mistakes. The release in Pakistan, could quite possibly pave the release for further Tv set stations across the Asian continent and then other parts of the world.

References

Internet

  1. Ofcom. , 2 Communications Market Special Article 2007. [internet]. Ofcom (Posted 2007) Offered by: http://www. ofcom. org. uk/research/cm/cm06/cmr06_print/tv. pdf [Utilized 17 June 2008]
  2. http://ptv. com. pk/aboutus-history. asp [Utilized 18 July 2008]
  3. http://www. pressreference. com/No-Sa/Pakistan. html [Seen 18 July 2008]
  4. http://www. stepfront. com/pakistan/what-pakistani-tv-channels-can-learn-from-google/ [Accessed 18 July 2008]
  5. Ofcom. , Advertising Literacy Audit: Article on media literacy amongst individuals from minority ethnic organizations 2006 [internet]. Ofcom (Publicized 2006) Offered by: http://www. ofcom. org. uk/advice/media_literacy/medlitpub/medlitpubrss/minority/minority. pdf [Seen 17 June 2008]
  6. https://www. cia. gov/library/publications/the-world-factbook/geos/pk. html#Econ [Utilized on 15 July 2008]
  7. http://economictimes. indiatimes. com/Swaminathan_S_Anklesaria_Aiyar/ We_dont_import_inflation_from_Mars_/articleshow
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