In September, RBC TV marked its first anniversary. The business television channel has been broadcasting its programs in a principally new TV format in Russia (predominantly live programs are offered, and news is broadcast every half an hour) for exactly one year. At present, about 40m Russians can receive RBC TV. The business TV channel brought $3.5m in revenues over the first quarter of 2004 (and the corresponding figure is expected to reach $16m by the end of the year).

1. If you have an idea, you have television

As modern marketing guru Jack Trout often reiterates, a company’s success is related to a correct strategy: following a strategy is the basis of survival in our difficult world.

The shareholders of RBC were facing the problem of choosing a strategy two years ago. At that time, the group had become a major participant of the media and IT markets and had entered the stock market. One the one hand RBC’s information group (comprised of a news agency, an electronic newspaper and specialized Internet resources) had unique experience in working with large volumes of information about finances, economy and politics. On the other hand the media holding company had a business audience, which allowed it to create new products relating to economic information (the rbc.ru website has 2m regular visitors). Additionally, the company received substantial financial resources from entering the stock market. Having placed 16 percent of its shares on the RTS and MICEX, RBC obtained $13.28m in 2002, and it only had to decide where to go next.

The idea of launching a business TV channel emerged when the founders of RBC were discussing ways to use the money received from the IPO most efficiently. “We analyzed different segments of both the IT sector, where the company traditionally operates, and the media sector,” RBC General Director Yury Rovensky pointed out retrospectively. “What about launching new Internet projects? This idea looked tempting, as this sector was growing, and the number of visits to RBC doubled every year. However, we were aware that any active growth would sooner or later begin to slow down for objective reasons. We understood that at least one condition should be met to keep RBC’s competitive advantages: it was necessary to make a qualitative move forward. Judging from what we saw here and from foreign experience, we understood that television was the most significant, most interesting thing we could make.”

“Almost from the beginning we determined what the new television should be like. This was to be a “niche” TV channel, specializing in economic and financial information, which would meet the needs of the upper class for business information (10 percent of the population, who according to information from the State Statistics Committee, derive 30 percent of all incomes in Russia). A paradoxical situation had emerged on the TV market by that time: there was economic growth in Russia, and the stock market was growing at a fantastic rate, but TV seemed to be ignoring this! Fingers on just one hand were enough to count economic programs on Russian TV: “Business Russia,” “Business Moscow,” “Big Money.” In total, federal TV channels devoted not more than 1 percent of their airtime to economic issues. RBC had no competitors on TV but it had an audience to offer TV content to, and this opportunity was to be used.”

The idea was that the new channel would not just provide objective economic information but also find a “language” that would be adequate to modern economic reality. As for economic programs on in the past, for example, during the era of “dieing socialism” just about 15 years ago, it was a “language” of victorious declarations, reports about labor feats and over fulfillment of plans. Over the past few years TV has been speaking about business as something criminal, and journalists achieved a particular success in making sensational reports about “geniuses of evil,” called oligarchs. Launching a new channel, the founders of RBC TV referred primarily to the best western examples of business TV journalism, although they were perfectly aware that specific circumstances in Russia should be taken into account. It was decided that both financial news and analytical materials would be equally presented on the channel (in the West some channels, such as CNBC and NTV (Germany) provide predominantly commentaries, and other channels, such as CNN and Fox-news, are news channels). Additionally, while presenting economic information, one could not skip politics. “It is quite correct that you have integrated business information and politics,” Yevgeny Primakov, the chairman of the Russian Chamber of Commerce and Industry, who has many years of experience in politics, said about RBC TV. One cannot do without politics here. Russia is not America, where the “fair market” determines everything, including politics, and therefore, Bloomberg TV can specialize exclusively on the economy. In Russia, where the government traditionally has a great influence on the business climate, one should not leave viewers without [information about] major political events.”

It was clear that a unique TV project was to be implemented. A TV channel without entertainment programs, which would broadcast for 24 hours a day, where live programs would occupy most of the airtime. It took RBC just a year and a half to launch this project from the start. The business television went on the air in September 2003. Studios with the most modern equipment were created and specialists were hired over a very short period. In addition to TV professionals, financial market specialists, traders and analysts from banks and financial companies came to work at RBC TV. Who, better than them, could tell us what is happening in our economy today and what we should expect tomorrow?

2. Promptness: freshness of news has no “second degree”

News bulletins are broadcast at RBC TV every half an hour, and “Markets” bulletins are aired every 40 minutes. None of the federal channels can offer the same intensiveness. Russian television has never worked in such a mood before. One can call RBC TV a real “news factory:” live reports make up 80 percent of the airtime (for example, prerecorded programs, such as talk shows, serials and movies, occupy most of the time on traditional TV channels). One of the TV channel’s undoubted achievements is the format that information is presented in, which is absolutely new to Russian viewers. Primarily, this applies to the “Markets” and “News” programs. As Bailington Investments S.A. President Mikhail Orlov remarked, the absence of information had been a major problem on the Russian financial market in different years. However, owing to RBC TV, there is a professional media platform now, which gives access to information needed for that business.

In order to fully understand the specific nature of RBC TV, one should remember that the business TV channel has a flexible program schedule. Program directors can delay programs that prevent viewers from following the main stories of the day. In the event something extraordinary occurs, which in particular, can influence the trade on the stock market, the program schedule is promptly updated, and fresh information is aired as it is received. For example, this policy was used to cover events relating to Khodorkovsky’s arrest.

The channel has a face and sentiment. A group of programs, called “Morning for a Businessperson” is highly popular. While traditional channels amuse viewers with slow and “half-asleep” conversations with guests during morning coffee, RBC TV tunes them to a business mood and familiarizes its viewers with the major events of the day. Rather short programs report the most important information while people are preparing to leave for work: complete press reviews, market information, forecasts for the day – everything that a white-collar needs, including an events billboard for evening entertainment.

3. Technique: quick news is important news

In order to minimize the time interval between an event and the broadcasting of a report about this event, RBC TV uses the most modern technical instruments. Remote cameras, installed at a dozen large banks and investment companies, are a point of special pride of the TV men. No other Russian TV channel has such a technical novelty, though they still use the old method: in order to receive a commentary from an expert, this expert is invited to the studio, or a correspondent visits the expert’s office. But too much time is wasted.

Everything is different with RBC TV. The TV channel’s guests can independently join a live program with up-to-date commentaries about some event. This is particularly important for the “Markets” program, which is monitoring the effect of news on share prices. Russian television has no analogues of this program. Its main specific feature is that viewers simultaneously receive both information and commentaries by analysts. The situation is analyzed from different viewpoints, and experts work in different market segments.

“Markets” literally is one of the “most live” programs. Live programs increase the adrenaline content even for the most serious specialists, prompting them play funny tricks. For example, experts from an investment company once made a real show, when they appeared in the studio in t-shirts and baseball caps instead of business suits, handling toy bears and bulls to stage the situation that had emerged on the market.

One can make jokes, but it is a fact that “Markets” is possibly the only program on Russian TV that is not censored. While gagging on a federal channel can be penalized, one cannot do without some improvisation here. Commentators and anchorpersons work without prompters. They read out up-to-date information received during the program. It is not surprising that this program has a real effect on the course of the trade. When “Markets” give traders new information not contradicting the general trend, it may cause fluctuations in share prices within 1-5 percent. Why? Yuniastrum Bank Executive Board Deputy Chairman Denis Yeganov pointed out that the stock market is an indicator of the economy in any country, and it should be covered adequately, as it happens in any developed country. In this connection, there is a serious need for accessible, high-quality information about the stock market and opportunities on this market for both individuals and organizations. In our view, RBC TV is the promptest and most professional source of information on the stock market in general and specific economic sectors in Russia in particular. Obviously, consumers appreciate this quality and professionalism. That is why market participants increasingly refer to commentaries and analysis by RBC TV’s experts.

4. Exclusive: first-hand information

One of the main principles of RBC TV’s editorial policies is to give a chance to speak not just to the expert community but also the main participants of an important event, so that viewers can receive an adequate picture of the situation. Here is a typical example: when a scandal between the Olimpiyskiy Bank and BIN Bank broke out, a representative of the first and then the second bank declared they were ready to give explanations on RBC TV, and they were invited to the studio of the “Intrigue of the Day” program. Viewers of RBC TV were able to listen to commentaries by both sides of the conflict immediately after the rumors about arrests and searches were disseminated. Major business newspapers commented on the theme that had been promptly covered by the business TV channel, on the following day.

RBC TV can also be proud of exclusive materials. For example, Chinese Ambassador to Russia Liu Guchang was interviewed in a live program on the business television in the spring. Normally, all statements by Chinese officials in Russia and other countries are prerecorded. Yet, this did not happen with just the Chinese ambassador! As soon as Russian President Vladimir Putin meets with oligarchs in the Kremlin, participants of the meeting declare they are ready to come to the studio to tell what the head of state had discussed with them.

Interesting people and topical themes are the secrets of the growing popularity of RBC TV. The business TV channel’s schedule includes some programs that have been specializing in covering the sharpest problems during their development. So it happened with, for example, the “Real Estate” program, whose initial duration was just 8 minutes, and now it has increased by almost threefold. The theme that earlier was touched upon quite briefly has turned out interesting and claimed. “Real Estate” provides a review of one of the fastest developing segments of the Russian market. What are the prospects of the Russian real estate market? Will it be stable development or chaos? Civilized or unpredictable? What is more profitable: buying or renting? Building or renting? And finally, how can one furnish and decorate an office, a country house, an apartment? Guests of the program: heads of major banks, construction and realty companies, lawmakers and government officials, investors and developers, architects and designers, answer these and many other questions that are important for owners from both the middle class and the business elite.

RBC TV raises and analyzes in detail themes that although topical, are practically not covered on federal TV channels. For example, the insurance sector. Soglasiye Insurance Group General Director Igor Zhuk pointed out: “The general problem of our media is that they say very little about insurance, and I do not know anyone except RBC TV who would constantly deal with this theme.”

5. Analysis: time of the smart

Why does RBC TV have so many smart guests? Why do experts like RBC TV so much? It is not a secret. Obviously, the guests are aware that the audience of RBC TV is not as big as that of federal channels. However, this is the audience they need. It is their target audience. These are people whom they can communicate with as equals. People whom one should not tell banalities to, speak with in a roundabout way and explain what the GDP is.

RBC TV’s regular guests include ministers, State Duma deputies, heads of major Russian companies, prominent public figures and politicians. RBC TV gives a specialist far more time for a commentary than all federal channels combined: one or two minutes at the maximum can be offered there, and as many as 20 minutes can be given here. “I am very pleased to be invited to comment on events as an expert. I am glad to see my colleagues in the “guild” who appear on the screen,” Montes Auri Managing Company General Director Sergey Sukalov declared.

It is not surprising that experts like RBC TV’s working style. Here they are not interrupted and not provoked to make a “vocal” statement. How many experts are invited to, for example, Vladimir Pozner’s program “Vremena”? Four people at the table by the anchorman and about 10 more in the stands. The arithmetic is quite simple here: how much time do they have to speak? And to think? Therefore, on a traditional channel, a person can say just a couple of phrases, and then he or she can only watch the opponents razing his or her arguments to the ground, being unable to respond.

Viewers perfectly understand this, and appreciate RBC TV’s programs, because experts there give them a chance to look somewhat deeper and to understand what should be expected tomorrow. A thoughtful discussion can give rise to forecasts, which are worth a lot. RBC TV’s viewers remember that as long ago as last winter it was said in the “Intrigue of the Day” program that the oil price might grow to $60 per barrel, while the government’s most optimistic forecasts were based on a price of $22. The then forthcoming banking crisis was discussed on RBC TV at least two weeks before it started. All bills on the agenda of the State Duma: the Forest Code, the Water Code, public utility reforms, administrative reforms, etc. are discussed in the studios of the first business television. The anchorpersons talk with everybody who is in any way related to the key bills: those who adopt them, who criticize them, develop them, or will be implementing them.

6. Enthralling stories about making money

One should not think that as RBC TV deals exclusively with finances and the economy, it is a dull television. The first business TV channel in Russia shows ability to find a non-trivial approach to things, to make a story interesting and to see a problem from an unexpected viewpoint. Episodes of the “The Sphere of Interests” program are a typical example of it. All sorts of themes are raised here! From combats without rules to decorative plants, from fairy tale images to street garbage. On the face of it, the same things are discussed in RBC TV’s studios as those on other TV channels: reforms and elections, culture and entertainments, politics and sports, etc. However, RBC TV’s journalists are able to show these things in a specific way, presenting them as a business project. This approach is uncommon for Russian viewers, and that is why it is captivating.

The two main themes of “The Sphere of Interests” are as follows: what can money be made on and how? It turns out that money can be made on anything. Ostap Bender would say: RBC TV shows where the money is kept. One of the most popular issues of the program last year, which caused an avalanche of phone calls, was devoted to vending. Specifically, it dealt with doing business with coffee-making vending machines.

It order to start a business, one primarily needs an idea rather than initial capital. One should be able to view any work as a business. One of the recent issues of “The Sphere of Interests” was devoted to Russia at the Formula 1 championship. The program’s guest, Sergey Zlobin, who is Russia’s first Formula 1 driver, was pleased to note that the discussion in the studio was different from what it was before: “I have been interviewed hundreds of times. And this was only the second time when business was discussed. Sports journalists normally do not understand that modern sports are primarily a business. And Formula 1 is a very big business.”

7. Audience: advertiser’s “dainty cake”

At present, about 40m people can receive the business TV channel’s programs. These are the residents of the 13 cities with a population of over 1m (Moscow, St. Petersburg, Novosibirsk, Nizhniy Novgorod, Yekaterinburg, Samara, Omsk, Kazan, Chelyabinsk, Rostov-on-Don, Ufa, Volgograd, Perm), as well as over 20 other industrial and business centers in Russia. RBC TV broadcasts its programs in CIS countries (Kazakhstan, Ukraine, Belarus) and Baltic countries. Business news is watched in the government office, in the Kremlin, the State Duma and the Federation Council. Finally, the TV channel is accessible in elite suburban neighborhoods, VIP hotels and business centers.

RBC TV's audience has been growing as if made with yeast over the past year. The channel was launched under the slogan “everything about business and for business,” with a focus primarily on senior and middle management. It became clear then that RBC TV’s programs were interesting to a broader audience: not just executives and employees of banks, investment companies, exchanges, audit and consulting firms, but also journalists, representatives of federal and regional government agencies, private investors and students studying economics. Everybody who is in any way interested in economic issues, who wants to learn to use money wisely and to receive unbiased, first-hand economic information, watches business TV. This is a quite logical phenomenon for a country with a growing economy.

At the channel’s request, the COMCON-Media independent research company conducted a survey of the audience of the RBC TV channel in March-April, 2004. The sociologists prepared a social and demographic profile of the business channel’s viewers and analyzed their consumer preferences. It turned out that well-off people with rather high incomes watch the channel. Almost half of them (45.4 percent) have one or more automobiles in the family. They like traveling (the proportion of people who have traveled abroad for this group is twice as high as the corresponding figure for Russia on average). Their expenditures on entertainment and vacationing, eating out, purchase and maintenance of automobiles and interior decorating are 1.5 times higher than those of the average viewer of other TV channels.

Almost one quarter of them (22.9 percent) are senior or medium-level managers, and over one quarter (27.6 percent) are qualified professionals. One third of RBC TV's audience is employed in such sectors as industrial production, construction and finances.

As for the social and demographic profile of a viewer of RBC TV, the sociologists pointed out that mainly married people watched the business TV channel (almost two thirds of RBC TV ‘s viewers are married), they are well educated (over half of the viewers have a university degree or completed at least three years at a university), and they devote a lot of time to work and their careers.

Foreign companies were the first to address their audience, as business television is not new to them, and they are well aware of its advantages. However, the reaction of Russian entrepreneurs was prompt, too. At present, the clients of the business television include major banks (the Central Bank of Russia, Alfa Bank, MDM Bank), oil giants (LUKoil, Tatneft), leading investment companies (Troika Dialog, Aton, Metropol). Automotive dealers, telecommunication companies, financial organizations, including banks and insurance companies, real estate agencies, construction firms and hi-tech companies have shown interest in RBC TV’s advertising services. Clients often make two-year contracts, wishing to protect themselves against an expected rise in advertising rates. Although advertising revenues are the basis of RBC TV’s business model, production of videos for clients has become an additional source of income. It is not surprising that the channel derived $3.5m in advertising revenues as of the end of last year, and these revenues are expected to reach $16m before the end of 2004.

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RBC TV's experience proves that new television is possible in Russia. The business television has honorably stood for one year, showing that one can broadcast news every half an hour and survive on the air. Every technical novelty on the TV market has been applied. Finally, the channel has managed to attract the attention of a target audience and to win the sympathy of TV professionals over a short period.

The market has taken RBC TV as a successful media project. The public and the business community have recognized the channel. It was praised at the 6th Eurasian TV Forum in a special category “The Main TV Event of 2003.” Additionally, it received a prize for popularity with the public of Kosmos-TV and the “Litsa-2003” award as the most successful innovative project of last year.

Analysts of investment companies expect that during the next few years, RBC will be showing one of the highest annual rates of growth in revenues for major Russian companies, reaching 18 percent on average. In their opinion, the RBC TV project will become the fastest growing business of the company and the main factor in the growth in its revenues. Following an additional issue of shares, the holding company has found itself in the center of the attention of western investment funds; such funds as Union Investment (Germany) and Pioneer (Italy) have acquired RBC’s shares. J.P. Morgan, East Capital, etc. have also become shareholders in RBC, while the Templeton international fund had acquired shares in RBC earlier. Explaining this activity of funds, experts refer to their willingness to invest money in the rapidly growing IT and media sectors in Russia, and the fact that RBC has no competitors on the stock market. Kirill Dmitriyev, the managing director of Delta Capital Management, agrees that RBC is operating “in an interesting combination of markets, which are growing quite rapidly.” Analysts are predicting a great future for RBC: amid scandals in the oil industry, major western investment funds are moving to quieter sectors.