CHAPTER 2 BACKGROUND INFORMATION

Transcription

CHAPTER 2
BACKGROUND INFORMATION
2.1. Business Process in Broadcasting Television Industry
Broadcasting television industry is one of the biggest entertainment
industries in the world. Entering this industry means that the player must
understand the business process inside it. To mastering the business
process, the player must know and understand the regulations that
actually happen. The main issue is the business practice regulation.
Different countries or regions face different issues on it. For the basic
knowledge, this industry has specific performance indicators as a
fundamental in the business process. These performance indicators will
be use as tools to create the product in this industry, and then enroll the
business system itself.
Business process will be explains in four major subjects. There are
regulation and pattern, performance indicator, product, and business
system.
2.1.1 Regulation and Pattern for Business Process in Indonesia
In Indonesia, the regulation and pattern of this industry are role by the
government and also based on the agreement from players and
stakeholders in this industry. Mostly, the government set up the basic
regulations. But for the business process, the role and regulation create
based on the agreement among the players and stake holders, especially
in cooperate with Research Company. All players and stakeholder in
Indonesia agree in cooperate with AGB Nielsen (formerly AC Nielsen)
as a major Research Company and used its phrase as performance
indicators and calculating research as a basic knowledge in sales.
Government Regulation in Business Process
For free TV like in Indonesia, the only product that actually sold by the
TV is air time or commercial break. Indonesia has regulations that
control the business process. The basic regulation of business process is
mentioning about the percentage of air time duration:
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“Waktu siaran iklan niaga untuk Lembaga Penyiaran Swasta sebanyakbanyaknya 20% (dua puluh per seratus), sedangkan untuk Lembaga Penyiaran
Publik paling banyak 15% (lima belas per seratus) dari seluruh waktu siaran.”
(UU No 32 Tahun 2002 Tentang Penyiaran, Bagian Kedelapan, Pasal 46 Butir
8).
“Waktu siaran iklan layanan masyarakat untuk Lembaga Penyiaran Swasta
sekurang-kurangnya 10% (sepuluh per seratus) dari siaran iklan niaga,
sedangkan untuk Lembaga Penyiaran Publik sekurang-kurangnya 30% (tiga
puluh per seratus) dari siaran iklannya.” (UU No 32 Tahun 2002 Tentang
Penyiaran, Bagian Kedelapan, Pasal 46 Butir 8)
This is the basic regulation for the business process in Indonesia.
Business processes only focus on air time (common use for commercial
break). That’s the only way to gain revenue for TV station in Indonesia.
Since there is a limitation in air time and also in broadcasting time,
commercial TV station has its own limit air time (spot); with the average
duration of TV Ad spot is 30 seconds. The calculation of limitation is like
this:
Maximum TV broadcast / day = 24 hours
Maximum air time / day
= 24 hours x 20% = 4 hours and 48
minutes
Limitation air time / day
= 4 Hours and 48 Minutes
1 spot = 30 seconds TV Ad
Limitation air time / day
= 4 hours and 48 minutes = 288 minutes
Maximum spot / day
= 288 minutes / 0.5 minutes = 576 spot
Limitation spot / day
= 576 spots
Public Service Announcements (PSA) = 10% air time / day (Max)
= 4.8 hours x 10% = 28.8 minutes = 29 minutes (Max)
PSA / day
= 29 minutes (Max)
= 58 spots (Max)
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DAY TIME, 24 HOURS
Limitation Air Time / Day
= 4 Hours, 48 Minutes
Limitation TV Ad Spot / Day
= 576 Spot
Net Broadcasting Time
= 19 Hours, 12 Minutes
Figure 2.1 Limitation Air Time and Spot Pie Chart
If a station broadcast 24 hours a day, it will have 576 spots. If the station
broadcast less then 24 hours, the spots will be depend on the duration of
broadcasting and less then 576 spots for sure. However, commercial TV
stations must broadcast PSA every day with maximum 10% from air
time/day. Actually, commercial TV stations still can be fine as long as
they put 1 spot of PSA.
Research Company in Business Process
Television industry cooperates with Research Company to provide
audience data of TV stations. This is a general requirement in
broadcasting television industry all over the world. The purpose is to
avoiding prejudice from the stakeholder, especially advertising agency
and advertiser. To achieve the trust from advertiser, the survey research
must be done from outsource Research Company. And the rule of the
game is simple; the entire players (TV stations) in the same regions
suggested cooperating with the same Research Company and the
agreement of the Research Company sources must get approval from
stakeholder and known in public. This is kind of a gentleman agreement.
This is the open competition industry, means that all the players can se
the current situation among the players.
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10 National Television stations and more then 70 Local Television
stations agreed to cooperate with AGB Nielsen as a Research Company.
The cooperation already begin since 1989, at that time the name is still
SRI (Survey Research Indonesia) then during the journey it transformed
into AC Nielsen then now known as AGB Nielsen. The task for Research
Company is basically same since the beginning. The main issues are to
provide rating point from each program in TV stations, then provide
channel share among TV stations. Those data become the basic tools for
stations to sell the product.
AGB Nielsen has a privilege to do the survey for this industry in
Indonesia. With all population in Indonesia, AGB Nielsen does the
survey for house that has a TV set. It calls Indonesian TV Household.
Recorded around 40 million TV Household in Indonesia with average 5
persons in 1 Household, AGB Nielson with all TV stations, Agencies and
Advertiser did consensus to determine the numbers of respondent and its
coverage. The considerations are based on population quantity in every
city, and coverage of product distribution or known as FMCG (Fast
Moving Consumers Goods).
The result of that consensus always changes since the beginning of this
industry, followed the growth and needs of this industry itself and also
adapted with the major condition. Then, the resent results of respondent
that be uses until now are:
 AGB Nielsen has a privilege for 10 coverage cities for
broadcasting television industry survey in Indonesia.
1. Greater Jakarta
6. Medan
2. Greater Yogyakarta
7. Palembang
3. Greater Surabaya
8. Makasar
4. Bandung
9. Denpasar
5. Semarang
10. Banjarmasin
 The numbers of respondent are 1,800 respondents
(household) in each coverage cities.
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 Total respondents in Indonesia = 1,800 x 10 = 18,000 TV
households.
There’s still a chance that those numbers above will be change. Until
now, they still provide the consensus to provide accurate data for this
industry.
2.1.2. Performance Indicator
There are three basic tools that use as performance indicators in this
industry. Those are rating, share, and ADEX (Advertising Expenditure).
These three elements used to measure the competition among the players.
Then the results also use to create the products that actually sell by TV
stations to the Advertiser and Agency.
Another role of Research Company is to determine the meaning and
concept of these performance indicators. This thing should be done in
order to create the same understanding about these phrases of
performance indicator among the players and stakeholders. AGB Nielsen
published TAM (Television Audience Measurement) Glossary for this
industry. TAM Glossary change periodically, depend on the situation that
faced in this industry.
Rating
“Rating is the percentage of a given population group consuming a medium at
a particular moment. Generally used for broadcast media, but can also be used
for any other medium. One rating equals 1 percentage.” (Source: Television
Audience Measurement (TAM) Glossary. Published by AGB Nielsen Media
nd
Research, 2 edition December 2006)
In other word, rating is the percentage of the universe (numbers of
viewers) based on the programs that been watch at particular time.
Percentage of rating is not always 100%. The universe that been count is
based on TV Household (around 42 million TV Household according the
latest data in Q1 2007). Based on that numbers, 1 percentage of rating
equals to 420,000 TV Household.
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Television will achieve its rating result as a Goss Rating Point (GRP). It
means that the rating is based on time adjustment. It could be minute by
minutes or second by second audiences based on the TAM systems.
“GRP (Gross Rating Point is unit of audience volume, which is based on the
percentage of the target audience population that has viewed a transmission
across a unit interval (usually minute by minute audience, but some TAM
systems base their GPS estimates on the second by second audience). For
example, a GRP of 10 implies and audience size that is equal to 10% of the
audience being measured. Meanwhile the total GRP delivery if a schedule of
advertising spots is equal to the sum of commercial GRPs/ratings across all the
spots contained in the schedule, program or commercial selections. For purpose
of calculating commercial GRPs, commercial GRPs for each advertising spot
are typically adjusted to a standard 30 second advertising spot interval.”
(Source: Television Audience Measurement (TAM) Glossary. Published by
AGB Nielsen Media Research, 2nd edition December 2006)
“TAM is widely used acronym for television audience measurement.” (Source:
Television Audience Measurement (TAM) Glossary. Published by AGB
nd
Nielsen Media Research, 2 edition December 2006)
In Indonesia, AGB Nielsen has its own requirement to measure the
rating. For the viewer, the measurement stars from 5 years old until 50
years old for male and female genders. Beside based on ages, AGB
Nielsen do the grouping for the viewers based on SES (Social Economic
Status). The grouping of SES based on disposable expenditure of primary
needs including all daily expenditure such as food, tuition fee, electricity,
water, cigarettes, maid salary, monthly rent, and etc. but not including
recreations and other non daily expenditure.
Range of SES always change depends on situation happened in country.
The major factor is economic, especially inflation. With the inflation, the
price of goods is increasing. Automatically cost the increasing of
household daily expenditure. Since household is the parameter of
measuring SES survey, automatically AGB Nielsen must redefine the
definition of SES itself.
According to AGB Nielsen Media Research release note no. III/11-Jan06, the ranges of SES since 2006 are:
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Figure 2.2 SES 2005 – 2006 (AGB Nielsen Media Research Release
Note no. III/11-Jan-06)
Those data above also supported with significant distribution changes
since 2004-2005 to 2006 in 9 cities, according to AGB Nielsen coverage
city respondent in Indonesia except Banjarmasin (no significant change
since 2004). Main factors that changes the SES ranges are:
“a. Result of survey establishment analysis that Nielsen did in 9 cities (Greater
Jakarta, Greater Surabaya, Medan, Palembang, Bandung, Greater
Yogyakarta, Semarang, Makasar, and Denpasar) show that population of
SES D and E significantly decreases 20%, while SES A and B
significantly increase 9%.
b. Significantly increase in trend data of average household ownership in 9%.
c. Inflation data from BPS (Badan Pusat Statistik) that happened since January
2004 to November 2005 in average 17.7%.
d. CPI (Consumer Price Index) data from BPS since January 2004 to
November 2005 in average 135 (increasing 35%)” (AGB Nielsen Media
Research Release no. III/11-Jan-06)
Percentage proportion for each SES group based on Establishment
Survey data in 9 cities
Figure 2.3 Percentage Proportion of SES (AGB Nielsen Media Research
Release Note no. III/11-Jan-06)
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Figure 2.4 Normal Distributions (AGB Nielsen Media Research Release
Note no. III/11-Jan-06)
Share
“Share of audience is the percentage of HUT (or PUT, PUR, PVT) tuned to a
particular program or stations. “Share of Market” is the percentage of total
category volume (dollar, units, etc.) accounted for by a brand. “Share of Voice”
in the percentage of advertising impressions generated by all brands in
category accounted for by a particular brand, but often also refers to share of
media spending.” (Source: Television Audience Measurement (TAM)
Glossary. Published by AGB Nielsen Media Research, 2nd edition December
2006)
“HUT (Home Using TV) is the percentage of home using (tuned in to) TV at a
particular time.” (Source: Television Audience Measurement (TAM) Glossary.
nd
Published by AGB Nielsen Media Research, 2 edition December 2006)
In Broadcasting Television Industry, share divided into two kinds. There
are channel share and program share. Both kinds are use to determine the
current position of TV competition. Share only count the number of TV
household in particular time. Then total share of TV station must be
100% during broadcast time. To know the share numbers, first thing is
must know the rating numbers. Then compare it with others rating from
others stations. For example:
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Total UNIVERSE = 42 Million
UNIVERSE
(In Million)
Rating TV A
= (5/42) x 100% = 11.9 %
= 11.9
= (3/42) x 100% = 7.14%
= 7.1
= (2/42) x 100% = 4.76%
= 4.8
= (7/42) x 100% = 16.7%
= 16.7
= (3/42) x 100% = 7.14%
= 7.1
Rating TV B
TV A, 5
TV B, 3
Rating TV C
TV C, 2
Not
Watch,
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Rating TV D
TV D, 7
TV E
,3
Rating TV E
Total Rating TV A to TV E
= 11.9 + 7.1 + 4.8 + 16.7 + 7.1
= 47.6 (47.6 % from UNIVERSE)
Total Rating is not always 100%, but total rating becomes 100% of total
share.
Share TV = (Rating TV / Total Rating) x 100%
Share TV A
Share TV B
Share TV C
Share TV D
Share TV E
= (11.9/47.6) x 100%
= (7.1/47.6) x 100%
= (4.8/47.6) x 100%
= (16.7/47.6) x 100%
= (7.1/47.6) x 100%
= 25%
= 15%
= 10%
= 35%
= 15%
= 25
= 15
= 10
= 35
= 15
Total Share TV A to TV E
= 25 + 15 + 10 + 35 + 15
Figure 2.5 Examples of Rating and Share Point (Alex Kumara, private
interview, 03/07/2007)
ADEX (Advertising Expenditure)
“ADEX (Advertising Expenditure) is list of advertisements that noted by AGB
Nielsen without any attention of agency commission, bonus and discount on
that advertisement.” (Alex Kumara, private interview, 17/04/2007)
ADEX only noted the number of spot and advertising spend that station
has done for certain period. Advertising spend represent the amount of
total price based on transaction between station and advertiser. That price
is including agency commission, but not including bonus and discount.
ADEX only released for commercial advertising. For PSA (Public
Service Announcement), a station has different offer of price. PSA is one
of the CSR in this industry. Usually, TV put low price and even free for
broadcasting PSA.
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There are internal and external factors that influence the change of
ADEX. The external factor mostly happened from economic change such
as inflation and buying power. It is something that the TV station can not
control. Even advertiser itself must give much effort to adapt with
external factor. Meanwhile, internal factor is something that TV stations
and advertiser can control. The only thing that can control is coverage or
reach.
To attract the advertiser, TV station has to increase the channel coverage.
Even though AGB Nielsen only do the survey in 10 cities, TV stations
has more then 10 cities as their zone coverage. The survey that AGB
Nielsen does is to figure out the rating and share point of station based on
sampling. The fact is, Indonesia has more then 10 cities and the entire
population able to watch TV. Another reason for increasing channel
reach is based on FMCG (Fast Moving Consumers Goods). This is the
thing that advertiser able to control. Advertisers distribute their product
all over Indonesia. Beside rating and share point, advertiser looks upon
the TV coverage. The more coverage the TV has, the more interest
advertiser buy air time spot.
“Common in this industry, advertiser put extra attention after TV station has 20
coverage cities in Indonesia including 10 cities of AGB Nielsen coverage. To
dominate the ADEX, TV station should have great rating with 20 coverage
cities. There is no educative explanation about the number of 20. That number
came up based on the experience and the efficiencies in this industry. Then, the
20 coverage areas becomes the public secret in this industry.” (Alex Kumara,
private interview, 03/07/2007)
2.1.3. Product
TV station sold air time (commercial break) with common duration is 30
second for each spot. To sell the air time, TV needs four main
components to create product. First is structure or format, second is time
allocations, third is rate card, and the last is buyers point of view.
Structure or Format
Usually, air time (commercial break) has duration around 2.5 minutes for
each commercial break. Those commercial breaks will be put among
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program’s segmentation. Each station has its own strategy and policy to
put the advertising in each spot. Example of structure / format:
Program XYZ, Duration 30 Minutes
SEGMEN 1
(8 Minutes)
SEGMEN 2
(8 Minutes)
SEGMEN 3
(8 Minutes)
COMMERCIAL
BREAK 1
(3 Minutes)
COMMERCIAL
BREAK 1
(3 Minutes)
S1/S2/S3/S4/S5/S6
S1/S2/S3/S4/S5/S6
Note:
1 spot air time = 30 second (average)
Figure 2.6 Examples of Structure / Format (Alex Kumara, private
interview, 03/07/2007)
TV should determine the structure/format from each program, and then
put the number of spot in the rate card complete with its price.
Time Allocations
Time allocations are the group of time range based on the number
audience. Time allocations are really depending on the situation and
audience habit. Different country has a different habit of watching.
History in Indonesia noted that this industry determine 5 ranges time
based on the number of audience. Those ranges time are:
“1. 00.00 – 17.00
2. 17.01 – 19.00
3. 19.01 – 20.00
4. 20.01 – 22.00
5. 22.01 – 24.00
03/07/2007)
Fringe Time
Shoulder Time 1
Prime Time 1
Prime Time 2 (Super Prime Time)
Shoulder Time 2” (Alex Kumara, private interview,
Prime time is a range of time with the largest audience. This is the
primary zone that uses to sell advertising spot with high price. Shoulder
time is the secondary optional to sell the advertising spot. Especially for
the advertiser who didn’t get spot or not able to pay the spot in prime
time. Fringe time is the free zone. Advertiser use this spot with different
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reason and different goals. Mostly, TV station offered fringe time as a
bonus to advertiser.
Rate Card
“Rate Card is a price list for advertising time and / or space.” (Source:
Television Audience Measurement (TAM) Glossary. Published by AGB
Nielsen Media Research, 2nd edition December 2006)
TV station has a price list for its air time according to each program that
station has. That price list is a set of menu that station offered to sell. In
this industry, that menu used to call PRC (Published Rate Card). Every
station published their own PRC to the parties that need it, including
stakeholder and AGB Nielsen. For the advertiser and advertising agency,
PRC is the menu. But for AGB Nielsen, PRC is a data to measure ADEX
growth in this industry. In other word, ADEX is list of PRC from all
stations.
“For the simple example, PRC (Published Rate Card) equals with the menu
that offered in the restaurant with advertiser as the buyer. Menu or PRC that
offered to the customer contain of list of price based on the name of program.
Price that offered for each program based on time and estimation of rating
including agency commission, and not including bonus and discount. Or in
other word, it is GRC (Gross Rate Card). Why we use rating estimation?
Because the PRC released before the program running or based on rating and
share point in the past, TV station use the past of rating to create estimation for
next rating and offer it to the advertiser.” (Alex Kumara, private interview,
03/07/2007).
There are several price components in PRC (Published Rate Card). First
is advertising price / GRC (Gross Rate Card), second is agency
commission, third is a net sale before bonus and/or discount (if there is a
bonus or discount), fourth is discount and bonus (additional), and the last
is net sales. Agency commission in this industry is 20% from gross sales.
That policy based on the agreement in this industry. With those
components, the basic formula to count actual revenue for TV station is.
Example:
PRC (Published Rate Card) Program 1 Station A (Prime Time)
Advertising Price / spot 30’ (GRC) =
Rp. 30,000,000.00
Agency Commission (20%)
= Rp. 30,000,000.00 x 20% =
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Rp. 6,000,000.00
Net sales before bonus / discount
=
Rp. 24,000,000.00
= Rp. 30,000,000.00 x 10% =
Rp. 3,000,000.00
Discount (10%)
Bonus: Buy 5 spot, free 1 spot in fringe time
Rp.
Net sales (Net Revenue)
Rp. 21,000,000.00
=
0.00
Based on the formula, the actual number that noted in ADEX is Rp.
30,000,000.00. Then, the number that should be paid from advertiser is
Rp. 21,000,000.00 to TV station and Rp. 6,000,000.00 to agency. Those
numbers should be noted by TV station, agency, and advertiser as
evidence after the transaction happened. ADEX is noted of gross sales
expenditure and not exactly noted the real revenue of station.
Buyer Point of View
Television has two types of costumers. The first one is audience, the
second is advertiser. TV needs to gain much audience to sell its spot to
the advertiser. Beside, TV’s program also must suitable with advertiser
mission. Both audience and advertiser is top priority on this industry.
This is the new content to create the product. This subject become
important after 10 national stations appear to this industry. The key point
of this content is how to offering the product based on customers’ need.
In this case, how to offered air time spot that suitable with advertiser
goals.
“Nowadays, TV stations put 3 classified of advertiser point of view:
1. Advertiser point of view based on rating and image program / station.
2. Advertiser point of view based on rating program / station.
3. Advertiser point of view based on image program / station.
Those classified used to determine basic knowledge of the product that will be
sell from advertiser, and a basic knowledge for A/E (Account Executive) to
approach the advertiser.” (Alex Kumara, private interview, 03/07/2007).
Example of buyer point of view;
1. Rating and image
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Product of shampoo for girl teenagers with average ages from 15
years to 25 years old and SES AB, want to define the program
with high specification of ages and image of SES AB.
2. Rating
Product of shampoo with strong brand image, only need exposure
from the program with high rating and based on target market.
3. Image
Product of shampoo for Muslim’s girls needs the program that
suitable with Muslim’s girls.
Based on example above, TV stations should be able to choose type of
approaching based on advertiser point of view. This is the foundation of
pointing a strategy to winning the competition in this industry.
2.1.4. Business System
To enter the business process, player should know the system inside it.
There are three parties that involved in cycle of the business. Each party
has their own functional with different task, and player with their own
role.
“Compare to other media, advertising that put on TV has an advantages in
frequency and reach. To proof and measure the value, TV station used CPRP
(Cost per Rating Point) as tools to determine the real value to the advertiser. In
fact, after advertiser see the value and compare it with other media, they
realized with the price that they spend in TV Ad they get efficiency and more
value in getting their reach and frequency based on their target to gain TOM
(Top Of Mind).” (Alex Kumara, private interview, 03/07/2007)
Example of CPRP:
1 rating point = 420,000 household (All SES, 5 years old +).
If 1 spot of air time in a program = Rp. 8,000,000.00 (Net)
With rating point = 10 for All SES
CPRP = Rp. 8,000,000 / 10 = Rp. 800,000 per rating point.
It means, by paying Rp. 8,000,000.00 with 10 rating point. Advertiser
actually pays Rp. 800,000.00 to reach 420,000 household as its audience
by only one advertising broadcast.
Advertiser also has their own target in achieving people’s number for
certain time of advertising. The main issue is to create efficiency of
capacity by using a proper media to reach top of mind. For television, the
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advertiser use TARP (Target Average Rating Point). For example, if
advertiser has TARP 20,000 rating per month, they need 2,000 spot if the
rating is 10 (based on CPRP above). Form its TARP, advertiser
determine its media order based on time, target, stations, and program.
Business Practice
There are four types of business practice that common use in this
Indonesian broadcasting television industry. Those business practices
represent the transactions offered from television to advertiser.
“Talking about business practice means that talking about content of sales
package. Sales package containing detail program product, its structure/format,
time allocation, published rate card, name of program, buyer point of view,
until CPRP. Those contents are basic data added in sales package. Beside that,
there are two types additional information to complete sales package. Those are
discount and bonus offered from station. According to that, TV stations can
offer four types of transactions and those transactions become business practice
that common use in this industry.” (Alex Kumara, private interview,
03/07/2007)
Four types of business practices are:
1. Cash Discount
Cash discount means the station only offering price discount
according to its price in published rate card (PRC), equals with
gross rate card (GRC), before reduce by agency commission.
Station use discount rate card as a phrase of cash discount. For
example, station offering cash discount 20% if advertiser able to
buy 100 spot in prime time.
2. Bonus Spot
Bonus spot means the station only offering additional spot with
the same payment according PRC. Those additional spot is
allocated in fringe and shoulder time. And this offering has a
basic requirement according to a number of spot that advertiser
able to buy. For example, stations offering free 20 spots in fringe
time and 5 spots in shoulder time if advertiser able to buy 100
spot in prime time (full payment).
“There are three main reasons of using bonus spot:
1. To reach TARP (Target Average Rating Point) of advertiser and
advertising agency.
2. To create program with no demand, look sell well.
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3. Fulfill air time for program that hard to sell.” (Alex Kumara,
Private Interview, 03/07/2007)
3. Cash Discount and Bonus Spot
This is the combination of price discount and additional spot. For
example, stations offering cash discount 20% with additional free
20 spot in fringe time and 5 spots in shoulder time if advertiser
able to buy 150 spot in prime time.
4. ROS (Run on Schedule / Run of Station)
This is a new type of business practice in this industry. The power
of offering is in advertiser hand. This offering only happens from
advertiser who has high buying power like consumers goods.
With variant products and high demand from consumers,
consumer’s goods don’t need persistence price data from PRC.
They only need free time or blank (unsold) spot. ROS is the
cheapest ADEX in television.
“It’s little bit confusing if talking about ROS. Because the offering of
transaction is came from advertiser. Until now, the one and only
advertiser who dare do this type of business practice is Unilever.
Since Unilever have plenty product variants with high demand. The
situation turn up side down, Unilever who do the offering first.
Unilever doesn’t really need data of rating and share. Because they
confidence with their product. Where ever the blank spots available,
Unilever will buy that spots.
Shortly, advertiser will say to station, “If you have free spot, put my
ad on it.” Or, “I have 100 million advertising budget, how many blank
spot that you have?” this is become the last choice if television still
have unsold spot. It’s better to get some money, rather then have
blank spot” (Alex Kumara, Private Interview, 03/07/2007)
Nowadays, all stations using and combine those types of business
practice as part of approaching strategy to advertiser. Different stations
have different policy of providing those types of transactions. To help the
procedural, television create and use traffic that consists of rule of
administration and software to help the transaction process.
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Broadcasting Business Cycle
TV
Program
Marketing
Advertising Agency
Advertiser
Media Planer
Brand Manager
AGB Nielsen
Positioning Result
Rating
Program Share
Channel Share
Positioning SES
Image Program
Image Channel
Sales (A/E)
Traffic
(Software & Administration)
Advertising Plan
 Product Brief
 Media Plan
 Budget
 TARP
Revision
No
Sales Package
Structure / Format
Time Allocation
Published Rate Card
Programs
Buyer Point of View
CPRP
Media
Order
Media Buyer
Yes
Post
Analysis
Traffic
Order
Figure 2.7 Broadcasting Business Cycle (Alex Kumara, private interview, 03/07/2007)
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According to the business cycle, there are three major parties that take
part in the business transaction. Those parties are TV station, advertising
agency, and advertiser. There are also specific functional from each
parties who take full interaction in this transaction. First role is functional
who have responsible to identify major data for sell activity. TV has
program and marketing functional that cooperate with AGB Nielson to
determine positioning result, while advertiser has brand manager that
cooperate with media planer (functional from advertising agency) to
determine advertising plan. Then the result will be given to front line. TV
has sales functional through its A/E and advertising agency through
media buyer. Different with media buyer who order based on advertising
plan, A/E should create sales package based on positioning result data
and traffic. A/E has responsible to determine price and package of
programs and PRC inside its sales package. Then both front lines can
start the transaction.
TV should adjust its sales packages with the needs of the advertiser.
That’s become one of the key successes of gaining revenue. Each TV
stations have different traffic structure. Software take a big role in
accommodate numbers of spot available with number of advertising
through traffic order. According to traffic order, advertising agency will
give post analysis to advertiser. Then those post analysis become part of
data for AGB Nielson to determine the growth of ADEX with data from
TV traffic.
Media order can be happen if advertiser and advertising agency agree
with the TV offered with its sales package. Media order from media order
divided based on target, station, and program that already set in
advertising plan. And also it must be suitable with the target that has been
seated to achieve TOM (Top of Mind) for its product. Then, the result
can be seen through post analysis.
National Televisions in Indonesia
Until 2007, history noted there are 10 national TV stations broadcasting
in Indonesia. Those are:
32
1. RCTI
PT. Rajawali Citra Televisi Indonesia is the first private TV and
then become national television in Indonesia. Established since
August 21st 1987 then start broadcasted two years latter on
August 1989. Under its holding company MNC (Media Nusantara
Citra), RCTI success to achieve first position among other
national televisions. Beside, RCTI also develop its technology,
nowadays the audience able to watch all programs through cell
phone and internet.
RCTI has three major tag lines. There are:
“RCTI adalah yang pertama dan terbaik”
“RCTI merupakan kebanggaan bersama milik Bangsa”
“RCTI OKE”
(http://www.rcti.tv/aboutus/aboutus.php, n.d.)
“VISI
Menjadi pilihan utama sebagai sumber hiburan dan informasi bagi
masyarakat dengan menyajikan program yang menarik dan berkualitas
dimana secara bersamaan memperhatikan keseimbangan faktor bisnis
dan tanggung jawab sosial sebagai media yang dominan di tanah air.
MISI
Menekankan semangat kebersamaan dalam membangun sebuah tim
kerja yang kuat dimana seluruh komponen perusahaan mulai dari level
teratas sampai terbawah mampu bersama-sama terstimuli,
terkoordinasi, dan tersistimatisasi memberikan karya terbaiknya demi
mewujudkan pelayanan terbaik dan utama.
 Keutamaan dalam Kebersamaan
 Bersatu Padu
 Oke
Untuk mewujudkan visi dan misi perusahaan, ada 3 (tiga) nilai
sebagai pilar utama yang menjadi motivasi, inspirasi, dan semangat
juang insane RCTI. Proses kerja dilakukan dengan semangat
kebersamaan untuk sampai pada hasil yang mendapatkan pengakuan
dari para “stakeholder” atas kualitas, integritas yang ditampilkan.”
(http://www.rcti.tv/aboutus/about_visimisi.php, n.d.)
RCTI broadcast every kind of program stars from opera soap
(sinetron), quiz, news, sports, box office, until music. Since the
beginning, RCTI didn’t put a specific channel program. It’s a
family channel and those programs become the role model in this
industry.
Until now, RCTI still become the number one station according to
its rating, share, and ADEX with primary target family SES ABC.
33
And also become the benchmark for other stations in this
industry.
2. SCTV
Surya Citra Televisi (SCTV) established on August 1990 as a
local TV station. Under PT. Surya Citra Media tbk (SCM), SCTV
start broadcasted with limited coverage on Gresik, Bangkalan,
Mojokerto, Surabaya, Sidoardjo, and Lamongan (Gerbang
Kertosusila) according to decision of Department of Information
No. 1415/RTF/K/IX/1989.
SCTV increased its coverage up to Bali in 1991. Until finally
broadcasted nationally to all over Indonesia in 1993 according to
SK Menteri Penerangan No. 111/1992. At that moment, SCTV
main office still in Surabaya, while this industry start growing in
Jakarta according to economic growth and Jakarta as a central of
governance. Since 1993 until 1998, SCTV moved its operational
base phases from Surabaya to Jakarta. Then finally, SCTV first
broadcasted nationally from Jakarta in 1999.
“VISI SCTV
Menjadi stasiun televisi unggulan yang memberikan kontribusi
terhadap pembangunan dan pencerdasan kehidupan bangsa.
MISI SCTV
Membangun SCTV sebagai jaringan stasiun televisi swasta terkemuka
di Indonesia dengan:
1. Menyediakan beragam program yang kreatif, inovatif, dan
berkualitas yang membangun bangsa.
2. Melaksanakan tata kelola perusahaan yang baik (good cooperate
governance).
3. Memberikan
nilai
tambah
kepada
stakeholder.”
(www.sctv.co.id/visimisi, n.d.)
SCTV developing three website, there are www.sctv.co.id,
www.liputan6.com, and www.liputanbola.com. SCTV launched
those websites to increasing its coverage globally. SCTV realized
that the growth of this industry become the part of society
dynamics. To maintain it, SCTV put an extra attention to develop
its news programs such as Liputan 6 (Pagi, Siang, Petang, dan
Malam), Buser, Topik Minggu Ini, etc. beside that, SCTV give a
34
watching directions to the audience that consist of BO
(Bimbingan Orang Tua), D (Dewasa), and SU (Semua Umur) on
the top left side of TV screen. SCTV become the first station who
uses that direction before finally government put that direction
into UU Penyiaran. Based on those directions, SCTV selectively
choose broadcasting time based on its program categories.
On January 2005, SCTV changed its logo and slogan with more
distinct
and
dynamic,
“SCTV
Satu
Untuk
Semua”
(www.sctv.co.id, n.d.), with 45 transmissions that can cover 240
cities and reach around 175.1 potential audience. SCTV has a
strong image as family SES ABC TV station with strong program
and rating in family SES BC.
3. TPI
Televisi Pendidikan Indonesia (TPI) is the first private TV that
broadcasted nationally since January 23rd 1991. At first
appearance,
TPI
cooperated
with
educational
department
broadcasted home education programs for student through
television. But, those programs didn’t give a good effect in rating
and revenue. Then TPI start to develop commercial product to
reach its rating and share.
TPI claimed itself as a pioneer for music dangdut programs
according to its website. TPI put its priority to broadcast
politeness programs for family that suitable with Indonesian
culture (vision and mission).
“VISI : Televisi Paling Indonesia
MISI : Menyajikan program bermutu untuk pemirsa
SLOGAN : Makin Indonesia Makin Asyik Aja”
(http://www.tpi.tv/profile.html, n.d.)
TPI consist with Indonesian programs, and achieved many awards
for its programs in order to develop Indonesian culture.
According to its website, in the year 2000, TPI awarded as
pioneer of dangdut programs from entertainment media and
persatuan wartawan peliput pertelevisian because existences of
35
TPI to provide “Anugrah Dangdut” as an awarded to dangdut
music industry in Indonesia. And also the best producer of variety
show in 2004, awarded from department of culture and tourism.
TPI successfully grab the audience in SES family CDE through
its Indonesian program especially dangdut. And become the
strongest player in SES CD segmentation for rating and share
with 27 coverage cities in Indonesia.
4. STAR ANTV
PT. Cakrawala Andalas Televisi established since January 1st
1993 as a local TV in Lampung with 5 hours broadcast a day.
January 18th 1993, ANTV become national television according
to decision of Information Minister RI No. 04A/1993. Ten days
after that decision, ANTV broadcast nationally and moved its
studio to Jakarta. March 1st 1993, ANTV succeed to broadcast
live report of “Sidang Umum MPR/DPR” and that moment
become the birthday of ANTV.
On September 30th 2005, ANTV cooperate with world wide
television network called STAR. This cooperation signed with
20% stock of STAR in ANTV. With this cooperation, ANTV
metamorphose into STAR ANTV as one of national televisions
with the largest networking in world wide. “Until 2007, STAR
ANTV has 23 relay stations with 154 coverage cities and more
then 129 million audience in Indonesia” (http://www.an.tv/, n.d.).
“VISI dan MISI
Menjadi stasiun TV yang berkelas dunia yang dibuat untuk Indonesia,
oleh Indonesia, memberikan kepada stakeholder pelayanan terbaik
dari segi kualitas, kreatifitas dan berbeda dengan stasiun TV lainnya.”
(http://www.an.tv/, n.d.)
With its new appearance, STAR ANTV achieved several award in
national and international.
“For national award, STAR ANTV achieved several award for its
programs from Panasonic Award, MUI (Majelis Ulama Indonesia)
36
Award, MURI (Museum Rekor Indonesia), etc. for International,
STAR ANTV achieved award from Asian Television Award for
category Best Sport Program, and Best News Program.”
(http://www.an.tv/, n.d.)
STAR ANTV transforms its program and put target as family
SES ABC television. With new look and new style, STAR ANTV
confidence to compete with top 5 players in this industry.
5. IVM
PT. Indosiar Visual Mandiri (the Company) leading with quality
program based on its in-house production. Established in 1991
and started operation on January 11th 1995.
“The emergence of the Company has been enlightening the television
industry through a series of breakthroughs and innovations aimed at
prioritizing stakeholders’ satisfaction as well as paying concern to the
surrounding environment.” (http://www.indosiar.com/v6/profile.htm,
n.d.)
Since its appearance, IVM has been known at the forefront of inhouse programs. About 45% of the total programs broadcast were
produce in-house with more then a half of them were broadcast
live. IVM in-house programs become the role model and
apprentices in variety show, such as AFI (Akademi Fantasi
Indosiar), Gebyar BCA, and MamaMia for the resent program.
However, those variety programs create trouble for its sustainable
until finally create plenty air time spot debt for each programs.
At the beginning, IVM have a strong image as family SES BCD
TV channel. But, the image has been change since IVM produce
more drama and soap opera (sinetron) of Indonesian urban legend
for in-house production. Nowadays, IVM struggle in this
competition with strong target in family SES BC. However, IVM
put first priority of delivering value added to its shareholders and
investors. In the year of 2004, the IVM restructuring undertaken
has enabled the shareholders to own new share of P.T. Indosiar
Kaya Media as the Company’s parent which has greater
opportunity to do diversification. For that record, IVM achieved
37
“The Value Greater Award” from SWA Sembada Magazine on
the eve of 2005, and also “Best Corporate Bond 2005” by
Investor Magazine. IVM has 34 relay stations at the end of 2005
with coverage area up to 80% total Indonesian citizen.
6. GLOBAL TV
GLOBAL TV is a private national television established in early
1999 and start operated in October 2001.
“GLOBAL TV quickly positioned itself as a youngest, private,
national coverage TV station in Indonesia targeted for a youngster
audience. GLOBAL TV started its own operation as a broadcaster of
MTV music programs for 24 hours non-stop, and covered the area of
JABOTABEK, Medan, Bandung, Semarang, Surabaya, Yogyakarta.”
(http://www.globaltv.co.id/index.php?menu=about&globaltv=49613d
4f76a3b97d2bfcad402faf2d04, n.d.)
GLOBAL
TV
cooperates
with
MTV
network
and
NICKELODEON. And for general audience, GLOBAL TV
broadcast news programs, F1, A1, Super bike, and other sports
live broadcast, weekly box-office movies, music, fashion, game
show, and infotainment. With 18 transmissions covered 142 cities
with over 110 million viewers a day. “GLOBAL TV is whollyowned
subsidiary
of
the
Media
Nusantara
Citra.”
(http://www.globaltv.co.id/index.php?menu=about&globaltv=496
13d4f76a3b97d2bfcad402faf2d04, n.d.)
7. METRO TV
“PT. Media Televisi Indonesia was granted a broadcasting licence for
Metro TV on October 25, 1999. It is a subsidiary of the Media Group,
headed by Surya Paloh, the company's President Director, who was a
wealth of experience in the local media industry and is the publisher
of Indonesia's third largest national newspaper. Media Indonesia.
From a start up work force of 280 employees the company now
employs more than 900 people, mostly in the newsroom and
production areas.” (http://www.metrotvnews.com/, n.d.)
METRO TV appears as an Indonesian news television with strong
male SES AB target. METRO TV put its segmentation as an
exclusive news and lifestyle television channel. And stars
broadcasting for 24 hours since November 25 th 2000. For the
competition, METRO TV serving a very niche market, according
to its rating, share, and ADEX performance.
38
“ VISION:
 To become a distinct Indonesian television station by ranking
number one for its news, offering quality entertainment and
lifestyle
programming.
Providing
unique
advertising
opportunities and achieving loyalty with its viewers and
advertisers.
MISSION:
 To stimulate and promote the nation's and country's advancement
towards a democratic atmosphere, in order to excel in global
competition, with high appreciation of moral and ethic.
 To add a valuable presence to the television industry by providing
a new perspective, by improving the way information is presented
and by offering quality entertainment alternatives.
 To achieve a significant level of growth by developing and
leveraging its assets, to increase the quality of life and the welfare
of its employees, and to produce significant profit for its share
holders.”
(http://www.metrotvnews.com/, n.d.)
8. TRANS TV
PT. Televisi Transformasi Indonesia (TRANS TV) is the 8th
private television who has authorized to broadcast nationally. The
ownership of this company is under Para Group (PT. Para Inti
Investindo). Get its national broadcast approval in October 1998
and start its official broadcast in December 15 th 2001.
“VISI :
Menjadi televisi terbaik di Indonesia maupun ASEAN, memberikan hasil
usaha yang positif bagi stakeholders, menyampaikan program-program
berkualitas, berperilaku berdasarkan nilai-nilai moral budaya kerja yang dapat
diterima oleh stakeholders serta mitra kerja, dan memberikan kontribusi dalam
meningkatkan kesejahteraan serta kecerdasan masyarakat.
MISI :
Wadah gagasan dan aspirasi masyarakat untuk mencerdaskan serta
mensejahterakan bangsa, memperkuat persatuan dan menumbuhkan nilai-nilai
demokrasi.”
(http://www.transtv.co.id/tendean/default/about_us.asp?status=todayspecial&a
boutus=oke, n.d.)
TRANS TV has a strong program and image in family SES AB.
The result can be seeing according its rating, share, and its ADEX
performance. TRANS TV become the first new comers with lest
than 4 years reach financial goal (BEP). Then in the same year
start to buy TV7 stock. With the result, TRANS TV buys 49%
stock of TV7.
39
TRANS TV becomes one of the large television networks in
Indonesia. With specifics programs that build TRANS TV image
as a family SES AB TV channel. TRANS TV produce almost
80% in-house production and very selective in choosing programs
from out-source. Kind of those programs is similar with other
stations. But, TRANS TV able to increase its performance since
its appearance and achieved many awards such as Asian
Television Award categories “Best Reality Program, Dunia Lain –
Lawang Sewu”, CAKRAM 2003 awards categories “Best
Television
Network”,
CAKRAM
2002
award
categories
“Potential Newcomer Media”, etc.
Until now, TRANS TV still maintains its top programs such as
Ceriwis, Extravaganza, Insert, and Jelang Siang. And keep
growing to achieve the best TV station after buy other station.
9. LATIVI
PT. LATIVI Mediakarya established with authorized from
Department of Information No. 779/MP/PM/1999 in October 25 th
1999 with main purpose to entertain audience with entertainment
and actual information programs.
“LATIVI dirancang untuk mereka yang tidak lagi perlu keluar rumah
untuk mendapatkan hiburan dan berita yang bermanfaat.
FORMULA OPTIMAL
60% Hiburan
20% Berita
20% Info Komersial
VISI
LATIVI, pilihan baru televisi Indonesia, selalu terdepan dalam
teknologi dan terbaik dalam penyajian program hiburan dan informasi.
MISI
LATIVI selalu terdepan, selangkah lebih maju dalam teknologi.
Menayangkan program berkualitas dan memiliki nilai tambah.
Menyajikan informasi factual, actual, dan berimbang serta memberi
pemecahan masalah. LATIVI memberi manfaat bagi perusahaan dan
masyarakat.
OBJECIVE
 Berorientasi kepada kepuasan pemirsa melalui penyajian program
acara yang berkualitas baik di bidang hiburan, berita, dan values
oriented program.
40
 Membangun dan mengembangkan kekuatan melalui penerapan
dan pembangunan sumber daya manusia yang profesional.
 Membangun kepemimpinan positif di kalangan industri
pertelevisian.
 Mengedepankan kepuasanpengiklan melalui penerapan Quality
Programming Strategy, Creative Advertising dan Teknologi
Mutakhir.
 Turut mendorong terbentuknya generasi baru berkualitas.
POSITIONING
Ditengah persaingan yang semakin ketat, LATIVI akan tampil secara
konsisten. Dengan mengetengahkan perbedaan kualitatif yang
signifikan dari para pesaingnya.
Lativi akan selalu konsisten membangun hubungan yang baik dan
harmonis dengan seluruh mitranya dengan menjaga mutu penyiaran
program
dan
iklan
secara
konsisten.”
(http://www.lativi.com/v3/default.aspx#, n.d.)
Since the beginning, LATIVI targeted family SES AB as a
primary target and family SES C as secondary target. However,
LATIVI didn’t show a good performance in rating, sharing, and
ADEX. The target falls into family SES BCD, with strong target
in family SES BC. LATIVI broadcast program with middle low
class image with specific adults program in the late of night,
Nowadays, LATIVI still do a bargaining with STAR ANTV in
merger process. With this cooperate; hopefully both stations can
be more competitive in this industry.
10. TV7 / TRANS7
PT. Duta Visual Nusantara Tivi Tujuh established on March 22nd
2000 with approval from “Department of Industrial and Trading
in
Central
Jakarta
No.
809/BH.09.05/III/2000”
(www.trans7.co.id, n.d.). On August 4th 2006, TV7 cooperate
with Para Group (TRANS TV). then TV7 transformed into
TRANS7.
“TRANS7 lahir sebagai sebuah stasiun swasta yang menyajikan
tayangan yang mengutamakan kecerdasan, ketajaman, kehangatan
penuh hiburan serta kepribadian bangsa yang membumi.”
(www.trans7.co.id, n.d.)
December 15 th 2006 is the birthday of TRANS7 with its first relaunching. TRANS7 appear to become a better television with inhouse programs. Focused on informative, creative, and innovative
41
programs, TRANS7 maintain a strong image of family SES ABC
television channel through its new look and its channels. After
TRANS TV bought 49% stock of TV7, TV7 become TRANS7
with appearance of TRANS culture.
Supplier
TV stations cooperate with many parties as their suppliers. There are two
major suppliers in this industry, supplier program, and supplier data.
Supplier data is Research Company that has a privilege to do the survey
for rating, share, and ADEX. AGB Nielsen already pointed as Research
Company in Indonesia.
RESEARCH DATA DISTRIBUTION
NEWS
• TV Rating/Share
• Index
• Breakdown by
•Breakdown by target
audience?
•Competitive day parts?
•Index
•Content suitability
minute
• Potential segment?
SALES/MARKETING
PRODUCTION
RESEARCH DATA
• TV Rating/Share
• Index
• Breakdown by
•Breakdown by target
audience?
•Competitive day parts?
•Index
•Content suitability
minute
• Potential segment?
PROGRAMMING
Figure 2.8 Research Data Distributor (Alex Kumara, TV
Broadcaster Workshop, Bangkok June 10 th 2007)
“Research Data is highly used across divisions not to evaluate performance, but
also building synergy in tactical/strategy decision making.” (Alex Kumara, TV
Broadcaster Workshop, Bangkok June 10 th 2007)
Another one is program suppliers. Television divided program inventory
into two parts of production. First one is in-house production, second is
out-source production. There are significant functional and different
among those two types. Mostly, in-house production consists of news,
42
and non drama such as game show, quiz, reality show, music, and
variety. The purpose of using in-house production is mostly to provide
programs that able to build channel image.
Another one is out-source production. Out-source can be provide from
local distributor and foreign distributor, both distributors well known as
production house in this industry. The dealing process use acquisition
contract, the content is depend to the contract. It can be licensing or
ownership of programs. Stations cooperate with local distributor to
provide Indonesian series (sinetron) until non drama, while foreign
distributor can provide foreign series until box-office movie. Dealing
with out-source production cost more money, because all stations able to
cooperate with all production houses. What usually happens is price war
among stations to deal with production house.
The quantity of using supplier is depending on the station’s policy. This
becomes the part of strategy to maintain TV financial. The goal of using
supplier is to provide great program and then grab high rating from the
audience.
2.2. History and Regulation of Broadcasting Television Industry in
Indonesia
At the beginning, broadcasting in Indonesia was monopolized by the
government through TVRI. The only television station that had right to
broadcast all over Indonesia. TVRI is full funded by the government,
besides it accepts TV commercials. Early 1986 President Soeharto
banned all commercials at TVRI, since the government indicates that
people become very consumptive and do not do any savings. The content
of the programs focused on information about government, education,
and news that mostly broadcasted as a community service programs.
Those programs run almost all day, since the morning until the afternoon.
Entertainment programs such as soap opera, music performance and
quizzes only broadcasted in left time since the afternoon until the
broadcast over at 22.00. There’s no dynamic in Indonesian Television
Industry back then.
43
The era of Indonesian Broadcasting Television Industry start in 1989.
There are three major period in this historical industry. The periods are
1989-1992, 1993-2000, 2001-Now.
2.2.1. History in Period 1989 – 1992
The first private TV came up in Jakarta and known as Rajawali Citra
Televisi Indonesia (RCTI) under Bimantara Group. RCTI started as a Pay
Terrestrial Service (PTS) with a coverage area in Jakarta only. At its first
appearance, RCTI offered a new style of broadcast with movies from
blockbuster, in house quizzes, soap opera, cartoons, and drama (sinetron).
As private pay TV, viewer must buy an RCTI’s decorder as a payment
for those programs, and pay a monthly Subscription Fee. The purpose of
decorder is to limit it’s viewers to subscribers only and not for the general
public as a part of the license. The revenue from subscription was good
enough to for RCTI. Commercial TV Ad was not popular at that time,
because the advertising Industry in Indonesia wasn’t ready with TV
advertising.
In 1990, RCTI was granted a Free Terrestrial License (FTL) for Jakarta
and Bandung only. With this license automatically the revenue stream
from subscription fee stop, while the advertising industry in Indonesia
was just starting. The revenue from TV Ad couldn’t replace the revenue
from subscription. This creates a very difficult time for RCTI.
At the same period, SCTV start its broadcast in Surabaya with a similar
license (PTL) like RCTI meaning that SCTV is a terrestrial pay TV
station in Surabaya with revenue from subscription and commercial TV
Ad. RCTI and SCTV Programs are the same, as well as their target
viewers. SCTV in Surabaya was not as successful as RCTI in Jakarta in
terms of popularity and sales.
In 1991 the government issued a new regulation where RCTI and SCTV
became a free to air TV Station. At the same time RCTI can operate in
Jakarta and SCTV can operate in Surabaya and Bali. Then at the same
44
period, TPI starts its broadcast in Jakarta as a free TV by using education
as a core of its program.
2.2.2. History in Period 1993 – 2000
The great era begins in 1993. This is the transition time from limited
coverage broadcast to national broadcast. There are 3 private TV stations
came up during this period. Listed 5 private TV broadcast during this
period, that are;
1. RCTI (Rajawali Citra Televisi Indonesia) 1989
2. SCTV (Surya Citra Televisi) 1990
3. TPI (Televisi Pendidikan Indonesia) 1991
4. ANTV (Cakrawala Andalas Televisi) 1993
5. IVM (Indosiar Visual Mandiri) 1993
The transition of national television nation-wide coverage was pioneered
by RCTI and SCTV who immediately operate in 15 cities in Indonesia at
the same year happened. The other 3 Stations start operating in later
years. In year 1997 all TV Stations operate in more than 20 cities.
In this period, 5 private commercial TV stations (RCTI, SCTV, TPI,
IVM, & ANTV) licensed as free TV. Compete in the same region with
the same market. The only revenue that all stations are fighting for is the
TV Ad Expenditure (ADEX). To get and win the competition the whole
broadcast industry needs a measuring methodology, to measure the
viewers (audience) of every single station. Survey Research Indonesia
(SRI) was the only research company that was available and agreed
between the TV broadcasters and the advertising agencies. At that time
audience research was done by diary system where respondents have to
fill in a diary book produced by SRI. Respondents have to fill in which
program they watch, on which channel and who is watching. The diary
system was later changed with an electronic metering system called
“People Meter”; which is used until today. The People Meter gives a
more accurate data, minute by minute watching habit by viewers is
detected also channel change (zapping) is detected as well.
45
2.2.3. History in Period 2001 – Now
2001 is the raised of the Indonesian television industry. This is the actual
competition begin with new rules, condition, and challenge. The actual
changes happened from the regulation. At the early year of 2001,
Department of Information publishes two new regulations for
broadcasting television industry. Those new rules were mention about the
changes in ownership of media including TV station, and also new
regulation about content in media.
“At the beginning, there were many rules and obligation for whom wants to
create a TV station. That person or company should follow those obligations
and get some blessing from several people with their power and positions. At
the 2001, the rules have change. The ownership of media becomes advantages
in information. People who have enough money and dare to enter this business
were able to create TV station. Only by used their ID and showing their
business plan then get approval from Minister of Information, they already able
to create TV station. And the new regulation about content of media is about
the news content issue, that mentioned all media can exposure political issue
and others issues as long as the news mention the fact that relevant with the
actual happened. This is the beginning of the freedom of journalistic in
Indonesia.” (Alex Kumara, private interview, 03/07/2007).
The new regulation about ownership of media created a new opportunity
for new comers. To prevent the open competition, Minister of
Information through its department put a limitation by giving only 5 more
approval for Indonesian national TV. With 18 new comers applied after
the open competition, Department of Information created a business plan
competition to choose 5 new comers for Indonesian national TV. Then, 5
business plans has been chosen and they appear since the late 2001 until
2002 known as TRANS TV, METRO TV, LATIVI, TV 7, and GLOBAL
TV. During this period, there are 10 National Television already
broadcasted in Indonesia.
2.3. Broadcasting Television Industry Landscape and Competition in
Indonesia
The landscape on this industry has been changes and growth following
the history itself. The competition becomes tougher since more players
appear in this industry. Beside the number of channel appear, external
factor such as economic condition and regulation also influence the
growth of competition itself in this industry. Based on those factors, the
46
landscape of this industry also divided into four major periods. The
periods are 1989-1992, 1993-2000, 2001-2006, and 2006-Q1 2007.
2.3.1. Landscape and Competition in Period 1989 – 1992
Since the government issues a new regulation about the free to air TV
stations in 1991. RCTI and SCTV struggle to get TV Ad from advertisers
in their own broadcasting coverage. At that period, adverting industry in
Indonesia wasn’t ready to enter the competition. This situation force
RCTI to create a strategy to attract advertiser to put TV Ad in RCTI.
RCTI has a benefit since has a right to operate in Jakarta. Most of the
consumer’s good industry was based in Jakarta. At that moment, RCTI
targeted consumer’s goods product for its TV Ad.
One of the first advertisers that were advertising on RCTI was Unilever.
Besides regular TV Ad, Unilever also produce a quiz show sponsored by
Lifeboy Soap, this was the first quiz show on RCTI. As the pioneer in
this industry, RCTI positioning as a family television with class
segmentation ABC. This means that all the programs appeal more to the
upper and middle socio - economic segment, but still can be appreciated
by all viewers based on income class, age, and education background.
SCTV faced different situation in Surabaya and Bali. SCTV can’t reach
full level of its sales. Most of the advertiser came from Jakarta, and
SCTV often get the same advertiser like RCTI after the advertiser get the
post analysis of its TV Ad product.
“The growth of Indonesian TV industry is very much driven by the economic
growth of Indonesia, especially in this period (1993-1997), where more and
more consumer’s good are advertised on TV.” (Alex Kumara, TV Broadcaster
Workshop, Bangkok June 10th 2007)
After 5 TV (RCTI, SCTV, TPI, ANTV, and IVM) become national TV,
Many consumers’ good put TV Ad. The top of advertised growth
happened since 1995 when TV national can operate in 15 cities in
Indonesia until finally can operate in more then 20 cities in 1997. These 3
47
years is the glory of TV Ad, until Indonesia faced economic crisis in
1998.
During these 3 years (1995-1997), NMR Advertising Information
recorder top 20 categories advertised in all TV. Most of the advertiser is
consumer’s good product with family segmentation as it target market.
Based on the situation, all TV stations create lots of program that can be
related with those products. And finally, hair care product like shampoo
and hair conditioner becomes the top category advertised during 3 years.
At that moment, hair care product can be replace in every program and
every time, as long as TV has the spot and advertisers able to pay the
spot. (See Appendix A, B, and C)
1993-1997 were golden years for almost every station, with first
regulation in broadcasting industry along with stability economic
condition. Those major condition and regulation are:
 “Exchange rate 1 US$ = Rp.2.000, A 30 second spot in prime time was US$ 4.000 in average or US$ 88.000 /
hour (22 spots).
 Foreign programs price was US$ 5.000 – 7.500 for US movies, US$ 500 –
1.000 for US series (30 min), US $ 1.500 – 2.000 for US series (60 min).
 Late 1995, because of competition between RCTI & SCTV against IVM,
program prices went up to 50% – 100%.
 Mid 1997, Asia was hit by the big economic crisis.
 Blockbuster movie cost:
o US$ 10.000 – 2 hours = 48 spots
o 44 spots for sale at US$ 4.000 / spot
o Total sales = US$ 176.000, - including agency commission.
o Gross profit = US$ 166.000,-” (Alex Kumara, TV Broadcaster
th
Workshop, Bangkok June 10 2007)
Those conditions created a great effect for the growth of broadcasting
industry. Television has their own composition in market share and
indirectly crating a new trend in promotion area for many companies,
especially for consumer’s goods. This is the beginning of “advertising on
TV” era. By creating profitable system to promote in media, broadcasting
industry becomes one of the fast money making in business.
With five players in this business, they actually do the same steps and
same way in order to sell the product. It happened since all the players
keep following the system and steps that created by the pioneer (RCTI).
48
Its strategy, approaching, working line, until price offered were followed
by the rest player. And by this condition, RCTI take a full control in
market share and rating that affect its revenue and profit. As a pioneer,
RCTI always put more effort in creating new strategy and implemented
wisely. While the followers take an extra alert in follow the strategy that
suitable for them.
ADEX Growth 1995-1997
Advertising Expenditure (ADEX) was growth rapidly during the year of
1995 to 1997. At this period, television already becomes the primary
media to put advertising for advertiser. The revenue that televisions get
from advertising was increasing every year. The percentage of the
increasing is very high, compared to other media.
“Comparing to other media, advertising activities on Television grows
rapidly with 37 % increasing in 1995 to 1996 and 23 % in 1996 to 1997”
(Alex Kumara, TV Broadcaster Workshop, Bangkok June 10th 2007).
1995 - 1997, All Media, by published rate card only, excluding Non-Commercial Ads, in
Rp ‘000,000
23
%
1995 - 1997 growth
23
%
37
%
4,200,264
30
%
3,426,274
2,659,760
2,160,108
2,629,166
18
%
1,577,494
23
%
29
%
1,231,872
1,005,203
849,723
Television
308,631
260,963
201,949
Newspaper
1995
18
%
Magazine
1996
Total
1997
(Source: NMR Advertising Information Service)
Figure 2.9 ADEX Growth All Media 1995 – 1997 (NMR Advertising
Information Services) (Alex Kumara, TV Broadcaster Workshop,
Bangkok June 10th 2007)
49
“During 1995–1997, advertising activities mostly focused on TV, showed
by 3% increase during that year.” (Alex Kumara, TV Broadcaster
Workshop, Bangkok June 10th 2007).
1995
8%
32%
60%
TV
NEWSPAPERS
MAGAZINES
1996
8%
29%
63%
TV
N E WS P A P E R S
M A G A Z IN E S
1997
7%
29%
63%
TV
NEWSPAPERS
MAGAZINES
Source: AGB Nielsen
Figure 2.10 Advertising Activities during 1995-1997 (AGB Nielsen)
(Alex Kumara, TV Broadcaster Workshop, Bangkok June 10th 2007).
Business Condition in 1993 – 1997
The business process of this industry was depended on the first player
which is RCTI, while others station act as a good follower. RCTI as the
pioneer start selling air time by program since 1990. At that moment, this
50
selling system is the easier and simple way to achieve revenue for this
industry. It proofed with others station can implement that system and
they get their own benefit by doing the same way like RCTI did at that
time.
“Selling air time by program is the selling system that use time rating as a
selling core with sales package as it product. At this point, time rating divided
into three level of rating time. Those are:
 Prime Time rating (7 pm – 10 pm), is very important.
 Shoulder time (5 pm – 7 pm & 10 pm – midnight) was difficult to sell,
regardless the rating.
 Fringe time (6 am – 5 pm), had almost no demand
Those levels of rating time always changed depended on the rating point in
every program in each TV stations. But, those are the average point of time that
happened along this period.” (Alex Kumara, TV Broadcaster Workshop,
th
Bangkok June 10 2007).
Based on those level of rating time, it can be see that only prime time that
have a highest bargaining power while other time usually become the
second option that choose by the advertiser that didn’t have enough
money to buy slot in those prime time.
“Sales package was introduced where advertisers can not buy only prime time,
but have to buy a combination of 1 spot in prime time with 2 spots in shoulder
or 3 spots at fringe. At the beginning, bonus spot were used as compensation of
declining ratings. Later bonus spot become a part of the sales package since
extension of commercial break changed from 20% per hour (12 min) to 30% 40% per hour (20 min – 24 min) in 1996.” (Alex Kumara, TV Broadcaster
The actual happened on period 1993 to 1997 can be described with this
business standard flow of Indonesian Broadcasting Television Industry.
Prime Time Rating: IMPORTANT
Shoulder Rating: DIFFICULT TO SELL
Fringe Time: NO DEMAND
SALES
PACKAGE
-Combination of spots
in Prime Time,
Shoulder, Fringe Time
-Bonus Spot as
compensation of
declining rating
Figure 2.11 Sales Packages (Alex Kumara, TV Broadcaster Workshop,
51
Entering 1998, Indonesia was faced in the chaotic situation. Beginning
with economic crisis until political situation changed that influence all
the business industry in Indonesia (including broadcasting television
industry). At this moment, television industry faced critical situations.
Lots of company collapsed and the price of product increasing while the
buying power still low. It’s become harder for company to put
advertising on TV.
Inflation becomes the main factor of critical change in television
industry. “1998, 1 US$ = Rp. 12.000,-; 600% increase, while the spot rate
remain the same” (Alex Kumara, TV Broadcaster Workshop, Bangkok
June 10th 2007). Television has expenditure in US$ while revenue in
Indonesian Rupiah. Since then, All TV stations used more effort to fulfill
their sales target. The condition become harder since the regulation didn’t
change until the year 2000.
“RCTI, SCTV, and IVM become sales leaders before 5 new national stations
appear. They sold 40 slots in 1 hour program at prime time, total 20 minutes
airtime. The main issue was 2 bonus spots beside prime time for each spot in
prime time, which means there were 80 additional spots fringe and/or shoulder
time for 40 spots prime time. The situation become more chaotic since their
traffic can’t handle the media order, then they have so many advertisement
debts to the advertiser. They even still pay their debt until those new comers
appear.” (Alex Kumara, private interview, 03/07/2007).
Entering this period, the competition will be change. Listed 10 national
televisions broadcasted since 2001. These new comers are TRANS TV,
METRO TV, LATIFI, GLOBAL TV, and TV7. They ready to compete
in this industry. “Those 5 new televisions learn from the previous player,
and all of them put an extra attention with the infestation they put into it.”
(Alex Kumara, private interview, 03/07/2007). This period is the moment
when 10 national televisions and over then 70 local televisions broadcast
in Indonesia. After Department on Information closed and the regulation
and the right about the National and Local Television has been approval
by KPI (Komisi Penyiaran Indonesia) in the late of 2001. KPI mostly
take part to role the obligation of the right and code of conduct between
52
local and national television, while the regulation about business process
in this industry was role by the agreement all the players in this industry
and also the stake holder.
The entire new comers really gave first priority for their appearance,
especially in financial which are the infestation process. Since the
economic crisis in 1998 and advertisement debts, the previous players
again face the financial problem. The entire players have their intention
to get revenue to reach break event point and maintain their image
ADEX Growth 2000 – 2005
The highest growth happened in 2002 with 40% growth. This is the
moment when this industry recovery from crisis and also 10 national
televisions fully broadcasted since 2002.
TV ADEX Growth From 2000-2005:
The highest increasing is in the year 2002 until 2003 with 40 % of
increasing
2000 - 2006, All stations, by published rate card only, excluding Non-Commercial Ads, in Rp ‘000,000,000
15
%
32
%
40
%
17,758
15,419
11,660
38
%
8,328
24
%
4,890
2000
6,042
2001
2002
2003
2004
2005
Source: NMR Advertising Information Service
Figure 2.12 TV ADEX Growth From 2000-2005 (NMR Advertising
Information Service) (Alex Kumara, TV Broadcaster Workshop,
53
Facing this situation, appear new player that can survive and show an
outstanding performance. Only takes 4 years after its appearance. In the
year of 2005, TRANS TV reaches its break event point and does
acquisition to other national television in 2005. TRANS TV shows a
break trough in this industry, reach their financial goal with their rating
and channel share on top 5 in this industry in 2005.
Since its appearance, TRANS TV showed good performance. Not only
from its rating and share, TRANS TV also did well in sales performance.
Proofed by the achievement on its revenue, especially since 2003 until it
reach financial goal in the year 2005.
After reach financial goal in the year of 2005. TRANS TV under TRANS
Corp. did the acquisition to TV 7. Then in the year of 2006, TV 7
transformed into TRANS 7 with same management with TRANS TV
under TRANS Corp.
Real Revenue National TV Stations: 2003-2005
(in Rp ‘000,000)
6 53
704
800
830
850
97 0
1 ,020
1 ,040
1,0 50
452
90
90
16 0
Metro
60
12 0
80
200
15 0
LATV
20
200
1 00
16 5
22 3
231
275
400
120
18 5
2 40
600
4 46
1,000
1 ,080
1,200
1,087
1,30 0
1,400
0
RCTI
IVM
SCTV
TRANS
Source: NMR Advertising Information Se rvice
TPI
2003
TV 7
2004
Global
ANTV
2005
Figure 2.13 Real Revenue National TV Stations: 2003-2005 (NMR
Advertising Information Service) (Alex Kumara, TV Broadcaster
Workshop, Bangkok June 10th2007)
54
Rating/share is concentrated at 5 big channels, especially in Prime Time
ANTV, 8.3
IVM, 13.3
TRANS, 12.4
RCTI, 18.8
TPI, 12.7
SCTV, 17.3
ANTV
IVM
RCTI
SCTV
TPI
TVRI1
TRANS
METRO
TV7
GTV
LATV
Source: AGB Nielsen
Figure 2.14 Channel Share 2005 (AGB Nielsen) (Alex Kumara, TV
Broadcaster Workshop, Bangkok June 10th 2007)
“ There are 8 significant changes since 2001. The changes influence business
process itself in this industry. Those changes are:
1. 10 commercial TV with national coverage operate since 2001 (RCTI,
SCTV, IVM, TPI, ANTV, TRANS TV, METRO TV, TV 7, LATIVI,
GLOBAL TV).
2. Late 2002 competition became tough (Industry recovery).
3. Station viewer share become more distributed from 5 to 10 channels.
4. Rating of programs between stations becomes divided into 2 groups. 5
stations have better rating and 5 stations are struggling for mor3e rating.
5. Rating of programs in primetime more distributed among 8 to 10 stations.
6. Media planning become more complicated, almost impossible to make
media plan without computer software and with latest rating.
7. As sales is now using different system:
 Normal sales package with bonus
 Billing commitment
 CPRP guarantee
8. Post analysis also become very complicated because of rating fluctuation
at every channel and long duration of commercial break.
With those changes the competition became tough and this is the beginning
moment of true competition TV industry.” (Alex Kumara, TV Broadcaster
55
TVRI1, 3
RCTI, 26
IVM, 28
YEAR: 2000
ANTV, 5
SCTV,
22
TPI, 15
TV7, 1.9
METRO, 1.2
LATIVI, 1.7
GLOBAL,
1.2
TVRI, 2
ANTV, 3.7
IVM , 23.7
TRANS, 6.5
YEAR: 2002
TPI, 10.5
SCTV, 17.7
RCTI, 20.6
Source: AGB Nielsen
Figure 2.15 Channel Share 2000 and 2002 (AGB Nielsen) (Alex Kumara,
TV Broadcaster Workshop, Bangkok June 10 th2007)
Those changes create a direct impact in business transaction process.
Normal sales package with bonus were not a strategic approaching to
advertiser. The entire TV stations develop their strategy by breaking
down billing commitment and CPRP guaranty. The entire stations
equipped their account executive (A/E) with all the information that
supports those strategies, and tried to combine the strategies to gain the
revenue.
“Billing commitment is where an advertiser commits a certain amount per year
to a station at a certain price per spot with rate protection. With this
commitment, station has a certain guarantee of its revenue for a year.
56
Some advertising is asking for cost per rating point (CPRP), this is a system
where program rating has to be broken down into certain social economy status
(SES), gender and also age to fulfill the product target market. Based on that,
advertiser will put a price for every rating point. It is a complicated work for
station as well as for Ad Agency to do post analysis per week.” (Alex Kumara,
th
TV Broadcaster Workshop, Bangkok June 10 2007)
2.3.4 Resent Competition in Industry: 2006 – Q1 2007
After 19 years since the first commercial TV appearance in 1989, this
industry has been change. Start from the growth of the players,
regulations, until the business process itself. 19 years has created 10
national players with their own images and segmentations. At first time,
most of TV stations claimed as a family TV. But during the journey, the
image for each TV stations came up based on SES (Social Economic
Scale). Actually, all TV stations already set their image. However, the
image that appear to surface didn’t always match with the first set up. TV
stations must gamble between protecting their idealism and gaining
revenue. Finally, the audience and the advertiser play their role to
determine the image of TV stations. Then back to basic, the producer
give supply based on the demand.
“Most of the expert and players in this industry seeing the image of TV stations
already set in groups based on SES. Talking about national TV, the images are
divided in this group:
 TV stations Family ABC: RCTI, SCTV, TRANS TV, TRANS 7, and
STAR ANTV.
 TV stations Family BCDE: IVM, TPI, and LATIVI.
 TV station Male AB: METRO TV.
 TV station Teenagers: GLOBAL TV.
Actually, that’s the basic images that happen this day and it’s not
fundamentally like that. For example; RCTI well known as a family ABC TV,
but actually its power is in family AB. SCTV also have power in family
BCDE, but its appearance shows a TV with family ABC promising
segmentation. Same as TRANS TV, TRANS 7, and STAR ANTV that also has
power in family CDE. GLOBAL TV, even though they claim as a teenagers
television, they cooperated with Nickelodeon and broadcast cartoon. And the
idealist one is METRO TV, still keeping the image as news television by
focusing in male AB even though some of the programs have a good rating in
women and young adults’ viewers. If talking about image, until now this
industry still not have a fundamental concept in measure it. It’s not possible,
but it’s not easy to do.” (Alex Kumara, private interview, 30/05/2007).
Since there isn’t fundamental concept to measure the image, TV using
rating and viewer distribution data to know their image based on the
viewer. As a result, according to AGB Nielson, most of TV viewer falls
57
into SES CDE in the year 2006. This result becomes the consideration in
developing TV programs and sales strategy.
Figure 2.16 Data Household SES (AGB Nielsen Media Research, Q1
2007: 6)
The condition also supported by the growth of TV household, especially
in 5 big cities in Indonesia (Jakarta, Bandung, Semarang, Surabaya,
Medan). According to the survey that conducted by AGB Nielson, the
TV household has grown 355% in the past 11 years in 5 big cities.
58
Figure 2.17 Growth of TV Household in 5 Cities (AGB Nielsen Media
Research, Q1 2007: 4)
This condition above shows the increasing level of quantity TV in
household. But the number of TV household didn’t equal with the growth
of household itself. Based on 10 cities that become respondents for AGB
Nielson, some cities still has big gap until 2006. AGB Nielson also
recorded the percentage number of household that owned 1, 2, and more
TV set at home based SES of total population of Indonesian household in
2006. As a result, more of 30% household in SES A has 2 TV set and
more.
AGB Nielson recorded total universe (number of people in TV
household) in 2007 is 42,018,788 people. The greatest number recorded
in Jakarta with more then 50% from total universe. That percentage
including the number of household that has 2 and more TV set at home.
Those numbers explained the number of the market in this industry
including the audience and the advertisers.
59
Figure 2.18 TV Household in 10 Cities 2006 (AGB Nielsen Media
Figure 2.19 Data Own 2 TV Sets of More 2006 (AGB Nielsen Media
60
Figure 2.20 Total Universes in Indonesia 2006 (AGB Nielsen Media
Channel Performance in First Quarter (Q1) 2007
Enter the year of 2007, the competition among the TV stations become
tougher. The industry experienced there are two players already acquired
by other player. In fact, one of the stations has been acquired by global
player. Those players are TV7 and ANTV. TRANS TV bough TV7
through TRANS Corp., then transformed into TRANS 7. And STAR
network which is global player bought ANTV and changed it into STAR
ANTV. That situation actually happened in 2005. At that period, the
moment of acquisition thing become main issues among the players. The
entire player exited to see the changes because there is global player with
a big name (STAR network) enter the market and the outstanding
performer (TRANS TV) also did the same, even though only with local
player.
Most experts expected that those players will expend the market through
channel share and rating with marvelous programs, and also to defeat
their main opponent which is RCTI and then dominated the industry.
This critical period (2006 -2007) become the measurement of their
successful of this issues. Then the result, there is a strong competition in
61
big 5 and tremendous share position for TRANS 7 with “Empat Mata”
show, SCTV with new reality shows, and TPI with KDI show. Beside
that, the different channel share between SCTV and RCTI only 0.3 %
happened in week 11 and 12 in 2007, then SCTV decrease its channel
share position in the week 13 in 2007. TRANS TV keeps maintaining the
3rd place in channel share position while the percentage was decreasing.
Figure 2.21 Channel Share during Q1 2007 (AGB Nielsen Media
At first quarter (Q1) 2007, the number of viewer is decreasing compare to
the same quarter in last year. AGB Nielson recorded 2% decreasing
viewer in week 4 and 6 during the first quarter. Based on the research, the
major problem was cost by major flood in Jakarta in early February. At
that moment, so many predictions explained the decreasing of the viewer.
The sure thing is many house covered by flood and many household can’t
watch the TV at that moment. Also since Jakarta has the highest
percentage of universe, the number of viewer influenced a lot when some
thing happened in Jakarta.
62
Figure 2.22 Viewing Level All Market 2006 and Q1 2007 (AGB Nielsen
Media Research, Q1 2007: 12)
Decreasing number of viewer has an impact to the channel share
performance at this period. Data recorded only RCTI has the highest
channel share in Jakarta with 20.6% of total share. While others have
recorded the highest channel shares in different cities. (See Appendix D)
ADEX Growth in First Quarter (Q1) 2007
2007 become the competitive period for this industry. Based on ADEX
growth, almost all stations increased their advertising expend for
commercial product compared to the same quarter in last year. Only
LATIVI decreased their advertising expend for commercial product.
TRANS TV and RCTI have a tough competition for commercial product.
Both of those stations have equal number of spot. However, RCTI still
have the highest cost for commercial product in its spot. The next
competition also happened between SCTV with TRANS 7. The spot is
equal, but the SCTV still has the higher cost than TRANS 7. RCTI,
TRANS TV, SCTV, and TRANS 7 become the top 4 based on its ADEX
growth.
63
Beside the commercial product, Television also allocated advertising
expend for program promo. Based on the data, 5 stations increased and 5
others decreased their advertising expend for program promo. STAR
ANTV showed a significant change in decreased spot followed with it
cost compare to the last year. While GLOBAL TV showed the opposite
way from STAR ANTV. TRANS TV decreased few its spot for
promotion promo followed it cost compare to the last year. While
TRANS 7 decreased its spot, but the cost increased little bit from the last
year.
Figure 2.23 ADEX Terrestrial Q1 2006 and Q1 2007 (AGB Nielsen
Figure 2.24 Cost and No. of Spot in Q1 2006 and Q1 2007 (AGB Nielsen
64
Significant changed in percentage of advertising spot and value happened
in TPI, IVM, and STAR ANTV. Those stations showed a serious
developing in achieving revenue based on result. TPI increased 40% for
advertising spot and 57% for its value. STAR ANTV increased 39% for
advertising spot and 54% for its value. Then IVM increased 39% for
advertising spot and 40% for its value. Meanwhile, TRANS TV only
increased 4% for advertising spot and 15% value growth.
Based on published rate card in Q1 2007, TRANS TV has the same
percentage in commercial product advertising share with RCTI. Both of
the channels pointed at 14% from total share of commercial advertising.
Compared to the last year when TRANS TV only pointed in the third
place with 12% of share.
Figure 2.25 Volume and Value Growth Q1 2006 to Q1 2007 (AGB
Nielsen Media Research, Q1 2007: 61)
65
Figure 2.26 Channel Share Q4 2006 and Q1 2007 (AGB Nielsen Media
66

CHAPTER 2 BACKGROUND INFORMATION

Transcription

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