ITV

Author: indiantelevision.com Team

  • Disney donates $2.5 mn toward building of Martin Luther King, Jr. national memorial

    Disney donates $2.5 mn toward building of Martin Luther King, Jr. national memorial

    MUMBAI: The Walt Disney Company Foundation led a Hollywood effort to raise awareness and financial backing for the building of the Martin Luther King, Jr., National Memorial by donating $2.5 million and underwriting the “Dream Dinner” fundraiser.

    With $47 million now raised by the foundation, a Congressional match kicks in that brings the total to $57 million of the $100 million needed for the project.

    The Walt Disney Company president and CEO Bob Iger said, “Everyone can do his or her part to help make sure this great man’s legacy will do more than endure, but will grow, and that Martin Luther King, Jr.’s story will be known and inspire generations to come. That is why it is my privilege and honor to present a $2.5 million check from The Walt Disney Company Foundation that will go towards realizing the dream of this magnificent memorial.”

    Those who attended to support the Dream Dinner included: Morgan Freeman, Alfre Woodard, Jack Valenti, Tommy Hilfiger, Gary Cowger of General Motors, Clarence Avant, Usher, Holly Robinson Peete, Rodney Peete, Victoria Rowell, and Antwone Fisher.

    Other companies and individuals who donated to the memorial alongside Disney were: News Corporation, the David Geffen Foundation, Steven Spielberg, Warner Bros., NBC Universal, Intel/Revelations Alliance, Jeffrey Katzenberg, the William Morris Agency, Norman Lear, Northrop Grumman Corporation, Gibson, Dunn & Crutcher, LLC, Nu Image/Avi Lerner, Robert Day, Lynda and Stewart Resnick, Jewish Federation, Jarvis Stewart, and Mosaic Sales Solutions, Tom Hanks and Rita Wilson, and Interior Music Publishing.

    “I am proud that the entertainment industry and the citizens of Los Angeles turned out in full force to support a long overdue national memorial to Dr. King,” said Jack Valenti, former president of the Motion Picture Association and a member of the Washington, DC Martin Luther King, Jr. National Memorial Project Foundation Executive Leadership Cabinet.

    The Los Angeles Dream Dinner is the third in a series of dinners to raise awareness and funds for Dr. King’s Memorial. J.W. Marriott, Jr. and Colin Powell co-hosted a Washington, D.C. Dream Dinner in October 2005. George Lucas, Deborah and Carlos Santana, Kareem Abdul-Jabbar, Bill Russell and Bill Walton participated in a November, 2005 San Francisco Dream Dinner.

    Los Angeles Dream Dinner donors will join the following major contributors to the project: General Motors, Tommy Hilfiger Corporate Foundation, The Ford Motor Company Fund, Toyota, Procter & Gamble, NBA/WNBA, George Lucas, WalMart, Victor MacFarlane, AFLAC, Fannie Mae and its Foundation, The J. Willard and Alice S. Marriott Foundation, Horowitz Family Foundation, Federated Department Stores Foundation, Bell South, Bank of America Charitable Foundation, Delta Airlines Foundation, and Washington Mystics owner Sheila Johnson. Among national figures supporting the memorial are the Honorable Andrew Young, General Colin Powell, the Honorable Jack Kemp, and David Stern.

  • Tdsat directive on Dish TV: Deadline over, MTV mum

    Tdsat directive on Dish TV: Deadline over, MTV mum

    MUMBAI: With just a day left for the 30-day deadline set by the Telecom Disputes Settlement and Appellate Tribunal (Tdsat), but music channel MTV and sibling kids’ channel Nick are still missing from Dish TV.

    It was on 10 February that Tdsat had issued a directive giving the two Viacom channels 30 days notice to make themeselves available to Zee Group’s DTH service Dish TV. As per Tdsat’s dictat, within the time frame from 10 February to 12 March, the two channels from the MTV stable had to be visible to Dish TV subscribers.

    Dish TV had issued a reminder to MTV, stating that the time period is on the verge of expiry and hoping for a positive response on the same. According to a senior Dish TV executive, “We issued a final reminder on 9 March. If they fail to respond to the same, we will move the Tdsat next week.”

    When contacted by Indiantelevision.com, a senior MTV Networks India executive said, “At this point of time, we don’t want to comment on this matter.”

    It is worth noting that when contacted earlier by Indiantelevision.com, MTV Networks India Sr VP network development and licensing and merchandising Sanjeev Hiremath had stated that the Set-Discovery One alliance (of which the two channels are a part) is already in talks with ASC Enterprises (Dish TV’s holding company) in regards to the matter.

    When asked if his DTH network and the One Alliance were anywhere near agreement, a senior Dish executive said, “We did have a few rounds of talks. However, nothing has been finalized as of now.”

    Dish TV, last year, had moved the disputes tribunal seeking legal redressal against, what it says, is MTV’s unwillingness to come onto its DTH platform.

    MTV India operates three channels in the country — MTV and Nick, distributed by the One Alliance and Vh1, distributed by Zee-Turner.

  • Cartoon Network goes live with ‘Reanimated’

    Cartoon Network goes live with ‘Reanimated’

    MUMBAI: Cartoon Network has announced the beginning of production on Reanimated, their first original movie that combines cartoon characters with live action.

    Reanimated tells the story of 12-year-old Jimmy Roberts who, while visiting an amusement park, gets into a tragic accident and needs an emergency brain transplant. The doctors give him the frozen brain of a famous cartoonist, which enables Jimmy to see cartoons wherever he goes.

    Casting is underway and the Los Angeles-based production will begin shooting this spring. Reanimatedwill premiere on Cartoon Network in August 2006.

    “When we read the script for Reanimated, we thought it was innovative, irreverent and, most of all, funny. We knew we had to make it. We think when it’s done the ‘Cartoon Network’ way, kids will enjoy seeing animation and the real world collide,” said Cartoon Network executive vice president and general manager Jim Samples.

    Reanimated is created by Adam Pava and Tim McKeon. Both were writers on Cartoon Network’s hit series Foster’s Home for Imaginary Friends and The Life & Times of Juniper Lee.

  • PwC sees strong merger and acquisition growth in US entertainment and media industry

    PwC sees strong merger and acquisition growth in US entertainment and media industry

    MUMBAI: Merger and acquisition activity in the US entertainment and media (E&M) market is on a strong growth trajectory, and this year is projected to reach levels not seen since 2001.

    A report 2006 M&A Insights — US Entertainment and Media Industry has been published by PricewaterhouseCoopers’ E&M Transaction Services Practice.

    The report notes that increasing levels of industry consolidation and deconsolidation activity are being driven by a number of trends and are being led by the convergence of media, communications and technology. There is also shifting consumer media consumption habits; and the increasing involvement and influence of private equity firms in deal making activity.

    Also fuelling this activity is a move by some global conglomerates to separate or divest non-core assets in an effort to increase shareholder value, according to the PwC report.

    At $72 billion, 2005 disclosed deal value increased 17.5 per cent during 2004 while disclosed deal volume increased two per cent to 252. The casinos, broadcasting and cable segments proved most active in terms of high profile transactions and highest deal value.

    PwC notes that based on activity seen so far, it appears that the industry is on a fast track to achieve greater deal volume and higher deal value in 2006 than in 2005.

    In addition to mega-deals with the potential to change the competitive landscape in entertainment and media, PwC expects middle-market deals of all sizes and across all sectors, to see increased activity in both value and volume. Adding to this growth are private equity firms, which are increasing their activity and investment level in entertainment and media and related industries. This is expected to evolve as conglomerates tighten their business focus, providing additional attractive investment opportunities.

    PwC’s analysis has revealed five factors as key to understanding the forces that are driving consolidation in E&M segments including casinos & gaming, broadcasting, cable, motion pictures/audio visual, Internet software and services, publishing, and advertising & marketing:
    — Convergence: Consumers continue to gain more control over when, where and how they consume content. In response to consumers’ needs and desires, media, communications, and technology industries will increasingly converge. As a result, PwC expects to see significant transactions, including deals ranging from strategic acquisitions of niche distribution technologies to large, non-traditional mergers that cross traditional industry boundaries.

    — Shifting content consumption: In traditional media sectors, consumers’ shifting content consumption activities will cause media audiences to fragment and advertising spending to grow more slowly. Conversely, in the online and interactive markets (Internet paid search and sponsorship, video games, etc.), advertising will increase more rapidly.

    Consequently, PwC expects to see increased acquisitions by advertisers and advertising-based publishers that are attempting to preserve their core revenue streams by acquiring the ability to reach consumers online with rich media, full-motion video, and e-commerce applications.

    — Rise of consumer-created content and communities of interest: This trend will offer consumers alternative media options and simultaneously provide advertisers with access to a “sticky” and potentially profitable environment of large audiences. As traditional content providers adapt to this changing landscape, they can seize opportunities to acquire companies that offer specialised content or technology serving the social network media space.

    — Continued impact of private equity firms: It is very likely that private equity firms will maintain and grow their significant presence, thus influencing the E&M industry. Increasingly, both the major global private equity firms and smaller, niche-oriented players are taking lead roles on the deals that are shaping and re-shaping the entertainment and media landscape. Private equity firms will continue seeking deals in solid, cash-flow-rich media companies and sectors that can generate strong shareholder returns.

    — Analysts and shareholders raising questions about global entertainment and media conglomerates: Both analysts and shareholders alike are increasingly questioning whether global conglomerates have become too large and complex to manage effectively, and companies are reacting. As a result, during the past two years, a significant trend in conglomerates looking to separate their organisations and/or divest non-core assets has occurred. (e.g. Clear Channel, IAC/Expedia and Liberty Media/Discovery in 2005; Viacom, Disney/ABC Radio Network and Stations, Cendant and Time
    Warner book publishing in 2006).

    This trend appears to be accelerating. So more E&M conglomerates deconsolidating and shedding additional non-core assets should occur in 2006. This trend presents opportunities for existing players to strengthen their holdings through strategic acquisitions, and for private equity players to craft investment platforms in a wider array of entertainment and media sectors.

  • CAS Rollout Could Provide Huge Push for DTH Operators as Well

    In business as in life, timing is everything. And despite all the expected noises from the government (state elections are due in Kolkata after all) and the broadcasters (re-dusting the same arguments against CAS that they offered in 2003), one lot who might not be so peeved by the developments are the DTH operators.

     

    IF, the CAS Dwitya rollout saga doesn’t get derailed again by the usual suspects, we have quite an interesting proposition that is on offer for the consumer. Tata Sky is quietly preparing its launch schedule and would more than likely advance its timelines if there is a definite direction from the powers that be that CAS is really going to take off.

     

    In the meantime Dish TV, at present the only existing private sector DTH service provider, would be expected to sort out programming contracts with SET Discovery before that and any and all contentious issues with the Star Network at least by the time Tata Sky launches.

     

    One could ask why is the CAS rollout timeline critical here? After all DTH retains the advantage of having a national footprint while CAS will be limited to the three metros in the first phase.

     

    There is of course Chennai, which is already under the CAS regime but that should be kept out of this debate. Why? Because despite SET India CEO Kunal Dasgupta’s comment on “the CAS experience in Chennai not having been a happy one” the fact remains that the biggest reason that set top uptake did not happen was because the channel that is most critical in the Tamil viewer’s scheme of things – Sun TV (and others of its ilk) – is available in the FTA package so there was and still is no compelling enough reason to invest in one.

     

    Coming back to the main discussion, crucial to our premise is the staggered rollout of the addressable system of transmission of pay channels that had been notified in 2003.

     

    As per the notification, each of the three metro cities (Delhi, Mumbai, and Kolkata) would be divided into four zones. Within a one-month time frame, in Zone A in each metro, pay channels can be watched only with the use of STBs. From the second month onwards, CAS will take effect in Zone B in each metro. And so it follows in Zone C from the third month onwards and Zone D from the fourth month onwards.

     

    For the government, there are two choices — implement the court order or appeal. For the purposes of this argument we are going with the implement premise.

     

    The court instituted deadline for CAS rollout is 10 April. Therefore, the government after due consideration would be expected issue its fresh updated notification on 10 April that within a month all pay channels in Zone A would have to be delivered through a set top i.e deadline for Zone A to be “set top compliant” 10 May. Taking that timeline forward, Zone B’s deadline would be 10 may, Zone C 10 June and Zone D 10 July.

     

    IF Tata Sky can launch by 10 April then it, along with Dish TV will be able to go to the consumer with their individual offerings as possible alternatives to cable delivered addressability. What is critical here is that the consumer is COMPELLED to take a set top box if he wants to get his daily fix of Star Plus or HBO (whatever the case may be). Since the set top is a given the only issue is which service he / she selects.

     

    It will all then come down to which of the three alternatives is the best as per consumer understanding. Who offers the best deal, who is perceived as being capable of delivering the best in terms of technological quality and viewer experience at the most competitive cost?

     

    We believe that of critical importance here will also be the perceptions and prejudices that are attached to the service providers. These issues could well guide choices if all other parameters remain basically the same.

     

    What we could see is more “sophisticated” Zone A consumers opting for the DTH option while the skew could well be towards the more familiar “cablewallahs” in Zone D for example. Whichever way the skew swings, STBs will move. That ultimately is what all the players in the digital delivery game want.

     

    A moot point though is this. IF the CAS rollout does go forward as per the Delhi High Court ordered schedule and IF there is a huge uptake of set top boxes (digital cable or DTH), one big loser could potentially be Anil Ambani’s Reliance, which is neither ready with its IPTV nor its DTH offering. Once there are a large number of boxes out in the market, to get consumers to make the switch to something else would take twice the effort.

  • Tivo reports a 45 per cent growth in subscriptions

    Tivo reports a 45 per cent growth in subscriptions

    MUMBAI: American firm Tivo which creates television services for digital video recorders (DVRs), has reported financial results for the fourth quarter and the year ended 31 January, 2006.

    Total subscriptions were approximately 4.4 million, which represents a 45 per cent growth in the subscription base during the past year. Service and technology revenues for the year increased 48 per cent to $170.9 million, compared to $115.5 million last year. Service and technology revenues for the quarter increased 37 per cent to $47 million, compared to $34.2 million for the same period last year.

    TiVo achieved its first positive cash flow from operations. For the year, Tivo lessened its net loss to $34.4 million and net loss per share of ($0.41). This was a 57 per cent and 59 per cent improvement respectively, compared to a net loss of ($79.8) million, or ($0.99) per share for the previous year.

    For the fourth quarter, Tivo reported a net loss of ($19.5) million and net loss per share of ($0.23), a 42 per cent and 45 per cent improvement respectively, compared to a net loss of ($33.7) million, or ($0.42) per share, for the fourth quarter of last year.

    Tivo-owned subscription gross additions were 221,000 for the quarter, compared to 276,000 in the fourth quarter of last year. This fiscal fourth quarter was the second best quarter in Tivo’s history in terms of Tivo-owned subscription net additions. Tivo-owned subscription net additions were 183,000 compared to 251,000 in the fourth quarter of last year. These numbers represent a decline compared to last year, reflective of the more challenging competitive environment. However, the fourth quarter results also suggest an improvement in year-over-year trends.

    In terms of sequential quarter-over-quarter percentage growth, this year represented a significant improvement over last year, showing early traction from the company’s new marketing programmes. Separately, as expected, TiVo added 173,000 DirecTV subscriptions in the quarter, compared to 379,000 in the third quarter of the year.

    Tivo CEO Tom Rogers said “This was a steady quarter for Tivo as our subscription base continued to grow, even in this more competitive environment. During the last six months, we have implemented a number of marketing programs designed to support our long-term goal of driving increased scale in our
    subscription base.

    “We are starting to see the results of these programmes as the fourth quarter was our best on-line quarter ever through TiVo.com. In addition, virtually all new subscriptions during the quarter signed on for a minimum one-year period, helping to further reduce our already comparatively low churn rate.

    “One of the key ways to drive our subscription base is to continue to differentiate TiVo’s service features from those of generic DVRs, which is an important driving force for us in 2006. Along those lines, we have just introduced a groundbreaking way for parents to supervise television in the home with all the simplicity that the Tivo service has come to be known for. TiVo has stepped in to solve an age old problem in the children’s television arena with the support of the largest children’s television groups in the country,
    Common Sense Media and The Parents Television Council.

    “As the pioneer in the DVR market, we continue to blaze the trail by providing our subscribers with unique content and programming features like TiVo KidZone, TiVoToGo, Advertising Search and the Yahoo! partnerships for TV scheduling, traffic, and photo distribution, which will continue to separate the TiVo service as a best of breed product.

    “In addition, as demonstrated by the Verizon Wireless announcement earlier this week, and a number of device integration initiatives made in the fourth quarter including the updated capability in our TivoToGo feature to transfer TV shows to portable devices including the Sony PSP and our work with Intel to seamlessly integrate content from TiVo units with Intel’s Viiv platform. Tivo is demonstrating that it is a central point of integration in the home with other digital devices and services,” adds Rogers.

    Tivo has also announced new, simplified pricing structures that make it easier for consumers to add Tivo to their home entertainment options. TiVo developed the new pricing structure after completing several months of market research among new and existing Tivo subscriptions and extensively testing the pricing options in the marketplace.

  • Nick US to give multi million dollar push to non-linear entertainment platforms

    Nick US to give multi million dollar push to non-linear entertainment platforms

    MUMBAI: At its 2006-07 upfront presentation US broadcaster Nickelodeon launched into a new era of creating entertainment for kids in the digital age.

    While continuing its unprecedented leadership in linear television production, Nickelodeon announced a slate that will include content developed from such platforms as feature films, video games, broadband and international production, as well as announcing a multi-million dollar development slate for non-linear productions.

    On air Nickelodeon will also premiere 254 new episodes during the 2006-07 season. Nickelodeon and MTVN Kids and Family Group president Cyma Zarghami says, “The first Nickelodeon generation of kids grew up in a video democracy where the words broadcast and cable meant nothing, and great characters and stories meant everything. This next generation of kids is platform agnostic. We already are programming to kids on 15 different platforms and we’re excited to be expanding our tradition of strong content development to reach across broadband, digital and wireless screens that have become a daily part of their lives.

    “Kids are the first adapters of the digital age and we are going to fully integrate our brand into that space with great character and story-driven content that will be developed specifically for the products they are accessing.”

    Zarghami added that Nickelodeon is committing to a multi-million dollar development slate to introduce new original content specifically for non-linear platforms.This includes launching an animation laboratory called Inkubators based at Nickelodeon’s animation studio in Burbank, Caqlifornia.

    The Inkubators Lab will be dedicated to the development of original animated content made specifically for a diverse range of platforms, including broadband; wireless; portable video devices; online and gaming. Additionally, Nickelodeon will be committing development resources to the creation of long and short form content developed from creators in international markets.

    During the 2006-07 season Nickelodeon will also introduce several series that were developed from non-traditional platforms. They include –

    Tak and the Power of JuJu – This premieres in 2007 on Nickelodeon. Developed from the successful video game series, Tak and the Power of Juju is a CGI animated adventure comedy series created in conjunction with THQ, Nickelodeon and game developer Avalanche Software which follows the slightly skewed comic adventures of fun-loving, mischievous 14-year old Tak, who has gained access to the magical, mythical realm of the always colourful and powerful Jujus.

    Set in a jungle paradise, Tak and his partners in adventure, Keeko and Jeera constantly find themselves in over their heads, but somehow always find a way out by relying on their native wits. Hal Sparks stars as the voice of Tak, with Tommy Davidson as Keeko and Colleen O’Shaughnessey as Jeera.

    Mr. Meaty – This also premieres in 2007 on Nickelodeon. Developed from Nickelodeon’s TurboNick broadband platform where it appeared as a series of shorts, Mr. Meaty is an animated comedy set in the flashy façade of a fast-food franchise and focuses on the working life of two teenage slackers, Josh and Parker, the unofficial, unaware champions of the underdog in a world that relies on the cookie-cutter mentality and the veneer of a perfect customer service experience.

    Full of teenaged self-importance and slouching indifference, the boys are willing to endure one of the most soulless jobs on earth in order to save enough money to produce their dream project – an awesome horror movie called “Ninja Zombies.” From their six-by-six foot square food-court bunker, they plan to improve their lives and their ultimate escape from the monotony of minimum wage.

    Downward Doghouse – This premieres in March 2007 on Nick Jr. Developed and produced through a partnership between Nickelodeon and Wang Films, Downward Doghouse is a new, original animated series that introduces preschoolers to the many aspects of Chinese culture and language through a five-year-old Chinese-American girl named Kai-lan.

    Following in the tradition of Dora the Explorer and Go, Diego, Go!, this new play-along series features an intergenerational Chinese-American family and teaches the Mandarin language to preschoolers at home – a first for preschool television. Each half-hour centers on Kai-lan and her relationships with her grandfather, her animal friends and the natural world. Kai-lan is an emotionally gifted child who is driven to understand the world and how things are linked together both physically and emotionally.

    Every episode follows the adventures of Kai–lan and her friends as they learn to identify their emotions and stop to consider the feelings of others. The series explores the colorful aspects of Kai-lan’s upbringing and background including family, food, and language while encouraging preschoolers to care for others and their environment. Downward Doghouse is created by Karen Chau and Executive Produced by Mary Harrington.

    The animation production for Downward Doghouse will be done in conjunction with Wang Films, with animation taking place in both Shanghai and Taiwan. In addition to the animation work, key episode designs will be created and produced at the Wang studio in China.

    The Nicktoons Network Animation Festival premieres in August 2006 on Nicktoons Network. After two successful festivals and entries received from around the world, Nicktoons Network, the 24-hour animation network owned by Nickelodeon, will partner for the first time with Kidscreen Magazine and again with Frederator Studios, for this year’s Nicktoons Network Animation Festival. Animators from around the globe can submit their original short films created in any style of animation and a grand jury will select a $10,000 grand prize winner from the top ten films chosen by the pre-selection jury.

    The festival will debut on Nicktoons Network’s air on August and will run for six nights. For the first time, the animation festival will also be available to view online at www.nicktoonsnetwork.com and will kick off with a two-day live screening event at the Nicktoons Studios in Burbank, CA on 12 August and 13 August.

    Meanwhile Barnyard was developed from the upcoming feature film of the same title and created by Steve Oedekerk. This is a CGI animated comedy series which takes a hilarious look at what really happens in a barnyard when the farmer’s back is turned. The series centers on Otis, a former carefree party cow who recently took over as the patriarch of the farm. Otis is advised (and sometimes ill-advised) on how best to govern the barnyard by his best friends: Pip, an outspoken mouse; and Freddie, a neurotic ferret and Peck, a level-headed rooster.

    Constantly faced with protecting the barnyard animals from all that lurks just beyond the fence, Otis must balance his desire to be the irresponsible cow of his youth with his new, grown–up responsibilities.

  • MSOs moot Re 1 a day rent scheme on STBs

    MSOs moot Re 1 a day rent scheme on STBs

    MUMBAI: The digital set-top box (STB) that will sit in consumer homes to receive pay channels will come cheap. Facing the threat of competition from direct-to-home (DTH) service providers, cable TV operators are preparing to enter the conditional access system (CAS) regime with an aggressive price plan.

    Multi-system operator Hathway Cable & Datacom has decided to introduce a rental scheme on its STBs with a fee as low as Re 1 a day. Incablenet is likely to follow suit but will be finalising its pricing on Monday, sources say.

    “We will be charging a rent of Re 1 per day on our boxes. Consumers will have to pay upfront Rs 999 as a refundable deposit,” Hathway Cable & Datacom CEO K Jayaraman tells Indiantelevision.com. Currently, the boxes are available for purchase at Rs 3,000 with no rental schemes.

    Even in Kolkata, Manthan Cable Network is considering a rental scheme of Rs 50 per month on an initial deposit of Rs 800-1,000. Competition can further drag down prices. “We are planning to charge a rent of Rs 50 per month on our STBs,” says Manthan director Gurmeet Singh.

    Cablecomm Services Pvt Ltd, another big operator in Kolkata, is also planning to structure its tariff plans for the CAS era.

    Siticable, which is the only MSO that has operations in the three metros of Delhi, Mumbai and Kolkata where CAS is going to be initially launched, could not be contacted for its comments. Chennai is the other city where CAS is already in place, but has seen slow uptake in demand.

    While broadcasters have expressed concern on the supply of boxes to seed the market at such short notice, cable networks have dismissed such fears as “being fictitious.” A phase-wise rollout of CAS in the three metros and an existing stockpile of STBs will make the transition smooth, operators say.

    “The industry has a stockpile of 800,000 boxes while estimates put the number of cable TV households in the notified areas of south Delhi and Mumbai for the first phase of rollout at over 600,000. Based on the demand, the boxes can be quickly replenished to keep the supply line flowing. It will take around one month to import the boxes,” says Jayaraman.

    Kolkata, where Hathway has no operations, has an estimated total of around 250,000 cable TV homes to be covered in the first zone CAS rollout. “We have a stock of 100,000 boxes and are offering 195 TV channels on our digital cable,” says Indian Cable Net CEO Amit Nag. Last year, Siticable acquired Indian Cable Net from the RPG Group to become the dominant MSO in Kolkata.

    Manthan, the largest operator in south Kolkata, has installed a digital headend and is in the process of putting its encryption system in place. “Kolkata Metropolitan Development Authority has around 1.8 million cable TV homes. The logistic cycles will be worked out,” says Singh.

    Mumbai and Delhi together have around seven million cable homes. “With CAS, we expect to give healthy competition to DTH. The ground will also get more organised and volumes, as they pick up, will drive down the cost of boxes,” says Atul Saraf, one of the founder-promoters of 7 Star.

  • Football World Cup to boost adspend growth in 2006: ZenithOptimedia

    MUMBAI: Ad expenditure in 2005 grew 4.9 per cent, which is the average rate at which expenditure has grown for the last decade. However, this year, the football World Cup will arouse intense interest and produce plenty of promotional opportunities. According to a recent study by ZenithOptimedia, the football World Cup will help ad expenditure to grow over a percentage point faster – by 6 per cent – in 2006.
     
     
    The agency expects growth to slow slightly, but however, remain above trend, to 5.6 per cent in 2007 and 5.3 per cent in 2008.
     
     
    The research also found that most of the largest contributors to the advertising growth will be the emerging markets. Another highlight is that internet advertising will overtake outdoor in 2007.

    Advertising expenditure: Major media (newspapers, magazines, television, radio, cinema, outdoor, Internet)
     2004 2005 2006 2007 2008
    North America 168,250 173,271 182,209 189,878 197,369
    Europe 104,567 108,448 113,010 117,726 122,657
    Asia/Pacific 78,802 83,162 88,819 95,420 101,816
    Latin America 15,546 18,021 19,754 21,090 22,244
    Africa/M. East/ROW 18,160 21,206 24,581 28,043 32,190
    World 385,324 404,108 429,373 452,157 476,276
    Source: ZenithOptimedia, US$ million, current prices. Currency conversion at 2004 average rates.
     

    Year-on-year change (%): Major media (newspapers, magazines, television, radio, cinema, outdoor, Internet)
     2004 v 03 2005 v 04 2006 v 05 2007 v 06 2008 v 07
    North America 6.1 3.0 5.2 4.2 3.9
    of which USA 6.0 2.9 5.2 4.2 4.0
    Europe 6.4 3.7 4.2 4.2 4.2
    Asia/Pacific 6.5 5.5 6.8 7.4 6.7
    Latin America 13.4 15.9 9.6 6.8 5.5
    Africa/M. East/ROW 27.7 16.8 15.9 14.1 14.8
    World 7.4 4.9 6.0 5.6 5.3
    Source: ZenithOptimedia

    ZenithOptimedia has forecasted that world ad expenditure will grow faster than world GDP in every year to 2008. Advertising accounted for 0.96 per cent of world GDP in 2005, and the agency expects this to rise to 0.99 per cent by 2008.

    This would be its first period of consistent out-performance since the late 1990s and suggests that the advertising cycle has at last emerged from the trough it entered in 2001. Advertising will remain well below the peak of 1.08 per cent of GDP it reached in 2000, though, suggesting there is plenty of room for further growth.

    The report also stated that between 2005 and 2008 six of the 10 largest contributors to advertising growth, and 11 of the 20 largest, will be emerging markets. Brazil, China, Indonesia, Mexico, Poland and Russia are all top-ten contributors of new ad dollars. “We expect their ad markets to grow by $19.2 billion between 2005 and 2008 – providing 27 per cent of total world growth – while their share of world expenditure increases from 7.9 per cent to 10.8 per cent.

    Top ten contributors to advertising expenditure growth 2005-2008
     Contribution US$m % of market 2005 % of market 2008
    USA 23,318 41.9 40.5
    China  6,441  2.4 3.5
    Russia  5,968  1.3  2.3
    Japan 4,444  10.3  9.7
    UK  3,118  5.4  5.2
    Indonesia  2,512 0.8  1.2
    Brazil 1,661 1.6  1.7
    Spain  1,443 2.1 2.1
    Mexico  1,382 0.9 1.0
    Poland  1,239 0.9 1.0

    China was the seventh-largest ad market in 2005 and the report predicts it to be fifth-largest in 2008. It is expected to grow by 66 per cent over the three-year forecast period, overtaking Italy in 2006 and France in 2008. Also, Russia will be a top-10 market by the end of 2008, leaping from 14th place in 2005 to 8th in 2008 as it more than doubles in size.

    As far as internet is concerned, ZenithOptimedia has revised its internet forecasts upwards once again as it has continued to exceed expectations. Internet will attract 6.5 per cent of all advertising in 2008, up from 4.5 per cent in 2005 (and up from the 6 per cent the agency predicted for 2008 in December).

    The internet is now firmly established as a mainstream advertising medium in developed markets, and in many developing markets too. The report predicts it will overtake outdoor in volume in 2007, even though outdoor is gaining share itself, and that by 2008 it will be catching up with radio too (which will have a 7.9 per cent share, down from 8.5 per cent in 2005).
     
     

     

  • Vaishnavi Corporate Communications expands board of directors

    MUMBAI: Vaishnavi Corporate Communications Pvt. Ltd. has expanded its Board of Directors with the inclusion of Vishal Mehta and Sanjiv Saddy.

    Mehta has been associated with Vaishnavi since inception and is the chief operation officer while Saddy is director-finance.
    The other members of the Board at Vaishnavi include chairperson and managing director Nira Radia, Karuna Menon and Rajiv Mohan.

    Vaishnavi Corporate Communications offers an array of services including public affairs, public relations, media training, media monitoring and analysis.

    Clients of Vaishnavi include companies in the Tata Group, channels within the Star portfolio, companies in the ITC Group, Raymond Group, Sun Microsystems India, ebay India, Kotak Life Insurance among others.

    The company has a presence in 10 cities including Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Kochi, Lucknow and Bhubaneshwar.