Comparison in the broadcasting industry: a case study of Ghana Television(GTV) and TV3 Network Limited

The study examines, determines, evaluates and analyses the performance of television stations in the television broadcasting industry in Ghana. The study, which was conducted in two television stations, Ghana Television (GTV) and TV3 has the following objectives: 1. To examine and evaluate the trend performance of GTV (a public service organization) and TV3 (a purely private station) in the broadcasting environment based on revenue generation (cash inflow), operating profit and by public perception; 2. To determine whether in the event of government withdrawing subvention, GTV can operate and survive in the competitive environment and at the same time maintaining its public functions 3. To find out whether GTV’ s performance has change significantly before and after the advent of the private television stations in the television broadcasting industry in Ghana, and to determine strategic management decisions that can help GTV to improve upon its current performance in the television broadcasting. The methodology for the study involved the use of both primary and secondary data. The secondary data are the data of cash flow statements (cash inflows and cash outflows) to determine the operating profits of GTV and TV3. Also the Consumer Price Index (CPI) to determine the real values of operating profit for the relevant years was obtained. A set of questionnaire was administered to the public (viewers) who formed the sample population to access the primary data for the study. Both descriptive and analytical methods are used in the analysis of the operating profits of GTV and TV3. There is the use of statistical test procedure of the difference between two population mean of the profit to compare the performance of GTV and TV3 on one hand, and the operational performance of GTV for the two different periods i.e. before and during the period the private stations started operating in the television broadcasting. Calculations and Charts! graphs are used to show the growth rate of the annual revenue generation to analyze and explain the performance of GTV and TV3. Among other things the study showed that GTV, with its past and current records of revenue generation and hence operating profit (net cash inflow), its performance could not match effectively with the private television stations. The evidence of which was when its operating profits without the government subvention but with labour cost showed negative values. Also the two stations recorded high operational cost because they do not cooperate in their operational activities. The study also revealed that most of the private stations, especially TV3 was performing very well in terms of programme contents (Entertainment, Sporting, Current Affairs etc programmes) and operating profit generated. The study also revealed that more public perceived GTV as the propaganda tool of the Government with its actual public functions not adequately performed. Based on the findings in the study, the recommendations made among others are 1. Government should gradually implement its withdrawal of the monthly subvention to GTV and introduce more innovative in its revenue generating activities such as the increase of its drive to attract more commercials, especially advertisement and sponsorships; 2. GTV should cut down its operational costs and find a permanent and adequate funding system such as the TV licensing fee, backed by legislative instrument (LI) so as to maintain its public service functions and then change its current bureaucratic system of management to modern systems to enhance operational activities. 3. GTV and TV3 should cooperate in their operational activities to cut down cost in both stations GTV should perform its public service functions as prescribed by the GBC decree 1968 and the National Media Commission’s National Media policy, produce and transmit more of locally produced programmes that focus more on social issues, rural development, entertainment and education, and change its weak and highly bureaucratic structure of management into modern strategic managerial principles. At the end of the study, it was realized that this subject is still open for further studies.

Source: KNUST