SHARANYA KANVILKAR writes from Bombay: The October 8 issue of Forbes magazine, from the CNBC-TV18 group, carries a four-page story that reads more like an advance obituary for DNA, the English broadsheet daily newspaper that was launched by the Dainik Bhaskar and Zee television groups to humble The Times of India in urbs prima in Indus.
Five years and Rs 1,100 crore later, writes Rohin Dharmakumar evocatively citing the 1961 film Guns of Navarone, DNA’s original ambition lies in tatters, although the “theory” was perfectly feasible.
# DNA’s Bombay readership is down 15% from its 2009 peak, while The Times of India’s is 2.5 larger.
# DNA’s ad rates are one-third ToI’s on paper, but closer to one-seventh due to discounting.
# DNA’s revenue was Rs 148 crore last year, up 22% over the year before, but still Rs 70 crore short of covering its operating costs.
# DNA is now a distant No.3 in Bombay and Bangalore to Hindustan Times and Deccan Chronicle, respectively, and both are reportedly close to dislodging it from that position.
# Only current executive editor R. Jagannathan remains from DNA’s original star cast, many of whom were lured from The Times of India and hired at high salaries.
In hindsight, DNA’s faulty subscription drive, the launch and free distribution of Mumbai Mirror with ToI and the increase of ToI’s cover price to suck the newspaper budget of households so that a second newspaper cannot be bought, are seen to have been the key drivers in ToI fighting off the challenge.
Rahul Kansal, the chief marketing officer of ToI, is quoted as saying:
“DNA came in with a lot of overconfidence. Heady with their launches in Gujarat and Rajasthan, they thought The Times of India would be a sitting duck. They started their outdoor campaign four months in advance, giving us adequate time to launch a new paper. I think they displayed their hand way too early, so by the time they launched, we had already soaked up a lot of the reading appetite.”
The southward turn in DNA’s fortunes is reflected in Subhash Chandra of Zee edging out partner Sudhir Agarwal of Dainik Bhaskar for a more hands-on role. Cost-cutting is the mantra of DNA’s CEO K.U. Rao, a former Shell executive in his first media stint.
“Probably the most stark sign of DNA’s transformation comes from Bangalore, where just over a year after it spent Rs 100 crore to put up a state-of-the-art press, it is now using it to print over 200,000 copies of Bangalore Mirror for The Times of India,” writes Rohin Dharmakumar.
The Forbes piece will be available online after October 7.