ITV

Author: indiantelevision.com Team

  • CAS Ruling: MSOs now have the ammo to take on DTH

    CAS Ruling: MSOs now have the ammo to take on DTH

    It was one piece of news that cable TV networks were waiting to hear for long, too long in actual fact!

     

    Buffeted by potential competition from direct-to-home (DTH) operators, the timing of the Delhi High Court ruling that has ordered the government to enforce the rollout of conditional access system (CAS) in India within four weeks couldn’t have been more crucial. Tata Sky is preparing to launch in June and Dish TV, at present the only existing private sector DTH service provider, is expected to sort out programming contracts with Star India and SET Discovery by then.

     

    Cable TV can take DTH head on with its digital service. It has the firepower to do so, having built a rich battery of last mile operators (LMOs) who have serviced consumers over the years.

     

    Firstly, it can cobble together more channels than DTH can offer at the initial stage when the consumer is making the shift from analogue to digital. Already, some MSOs are making available a little under 150 TV channels. DTH operators, on the other hand, are limited by transponder space on satellite and can only ramp up under MPEG-4 compression technology.

     

    Second, cable TV can bundle broadband and, with preparation in future, telephony services.

     

    Third, it can develop interactive features with its fibre network.

     

    Fourth, it has manpower in place which can be quickly energised to push digital set-top boxes (STBs).

     

    Sure, MSOs and independent operators would have preferred the courts to have come up with the same verdict much earlier, after the government withdrew CAS in 2004. That would have given them a first mover advantage with a considerable time lag before DTH could kickstart operations.

     

    But there was one issue which had still to be sorted out for an effective rollout: LMOs felt insecure and did not back the rollout of digital cable. With competition from DTH looming large, they now have the support of their franchisee operators.

     

    But what if the verdict on CAS had come after Tata Sky’s launch and Dish TV’s content contracts had been stitched with Star and Sony? Cable TV operators would have been able to fight against DTH with two weapons in their armoury – analogue cable and voluntary digitalisation. On analogue cable, operators have the flexibility of dropping subscription fees drastically. With a price warrior in place through analogue service, digital cable could offer an alternate choice to consumers to combat DTH head on. On the flip side, the digital service would still remain unaddressable while DTH could provide consumers the choice of selecting channels and packages they want to pay for.

     

    Under CAS, cable operators do not have the flexibility of delivering pay channels on their analogue network. Consumers will have to select between DTH and digital cable for receiving these channels. They will, in other words, have to buy either a DTH or a cable TV set-top box.

     

    But delaying the direct knock-to-knock face-off between cable and DTH operators hardly serves any purpose. The business model for MSOs and independent operators can only get worse if no CAS is in place. Because the way out to stop DTH from invading into cable territory without a properly tiered and price-packaged digital service would have been possible only through rate drops. While LMOs would have been unaffected, the MSOs would have felt the pinch.

     

    Retooling business strategies and organising the sector is in the commercial interest of the cable operators. The hour has come to change the mindset and bring in quality and service-oriented practices. It will be meaningless to wish away competition from DTH and later IPTV providers.

     

    Several networks already have a stockpile of digital STBs. So far, they have been unable to place these boxes in consumer homes. Even Hathway Cable & Datacom, the more aggressive of the digital cable TV players, claims it has managed to distribute just 40,000 boxes. It would do better for operators to take a more positive view: that with CAS, digitalisation, either through cable or DTH or IPTV, would move faster.

     

    After all, the market is too big and diverse for any single player to cover it all.

     

    Ensuring a ramp up in supply of boxes, erecting a solid encryption system, and having a sound billing mechanism should be the focus areas. Also, it is crucial for operators to find more, better and premium content which can lure customers. They will also have to work out rental schemes and low up-front charges to subsidise the boxes in order to stay competitive with DTH.

     

    Another hard lesson to be learnt from this is that investments on old technologies won’t help. For those who have put their money on analogue STBs, the chances of surviving the battle look grim. Yes, there is a market for free-to-air analogue service. But no, not for analogue STBs as that will limit the channel offerings at a time when supply is growing rapidly.

     

    There will be competitive pressure for cable operators to upgrade their networks and services. Territorial monopolies will end and cable operators will also have to fight amongst themselves for retaining or acquiring subscribers.

     

    DTH, of course, retains one advantage. It has a national footprint while CAS is limited to the four metros in the first phase. This will give DTH economies of scale, but then it will still face the big hurdle of drawing in consumers to buy a box in the non-CAS areas.

     

    By bringing in CAS, the MSOs realise the entire business model changes in favour of them. Gaining control over the entire value chain across the network and having an addressable system will pump up valuation of cable companies and draw in global investors.

     

    The green signal on CAS couldn’t have come at a riper time. If there is any year which can drive digitalisation forward, this is it. In June-July, ESPN Star Sports will show live the football World Cup. The other key properties on the roster are ICC cricket Champions Trophy in September and the cricket World Cup early 2007 (both events on Sony).

  • Trai asks DTH operators to file inter-connect agreements with broadcasters

    Trai asks DTH operators to file inter-connect agreements with broadcasters

    NEW DELHI: The Telecom Regulatory Authority of India (Trai) today directed DTH operators to file with the designated authority their inter-connect agreements with various broadcasters.

    This move, the regulator said, will be in addition to an existing obligation placed on the broadcasters, in terms of a 31 December 2004 directive, to file their inter-connect agreements entered with a DTH operator.

    “The amendment to (regulations) for filing by the DTH operator has been done to facilitate better monitoring and to provide for specific informational requirements relevant to DTH platform,” Trai said in a statement soon after a Delhi court directed the government to plan rollout of CAS within four weeks.

    Since the number of agreements that would be entered into by a DTH operator with broadcasters will not be voluminous as in the case of cable TV, it should be possible to provide for filing of copies of individual agreements, Trai explained, nipping in the bud any criticism of such a move.

    The regulator would separately be specifying the procedure to be adopted by DTH operators for the filing(s) after amended regulations are notified.

    On 31 December 2004, Trai had issued regulations for filing and registration of interconnect agreements entered into by broadcasters with service providers under different platforms.

    In line with the detailed recommendations of TRAI on issues relating to broadcasting and distribution of TV channels, it was stated in paragraph 5 of the explanatory memorandum to the above regulation that the agreements entered into between a MSO and a local cable operator (LCO) shall be registered with the authorized officers under the Cable Act.

    Subsequently, on 2 December 2005, these regulations were amended to bring about flexibility in adopting procedures as regard to the manner of filing, formats of filing, etc of the inter-connect agreements.

  • Ambience Publicis’ Shavon Barua to head Dentsu Q-Pro

    MUMBAI: Ambience Publicis’ Shavon Barua has quit the agency to join Dentsu Q-Pro as general manager. Dentsu Q-Pro is the recruitment advertising agency of Dentsu in India.

    Barua, who will be based in Delhi, was heading the Lakme business at Ambience Publicis.

    Dentsu Q-Pro was launched last month by Dentsu Marcom as a specialist division catering to HR related and employee branding communications. Dentsu Q-Pro pioneered the concept of recruitment advertising on television with the launch of naukri.com sponsored ‘The Job Show’ on CNBC where LG, Aviva and DNA amongst others have already recruited candidates live on the show. Amongst its clients, Dentsu Q-Pro is already doing work for Suzlon and HCC.
    Barua has been with Ambience Publicis for the last couple of years. Prior to this she was in-charge of Colgate-Palmolive at Rediffusion DYR. She has also had a stint with SSC&B Lintas.

    “Dentsu Q-Pro is a green-field and blue skies idea, which requires a leader as exuberant as Shavon. Employer branding and reputation management will become important areas of corporate communications in the days to come. Shavon has been charged with taking Dentsu Q-Pro to market leadership,” Dentsu India chairman Sandeep Goyal.

    “I have worked with Mr. Goyal and Gullu Sen in my Rediffusion days. They allow a lot of space for individual leadership, while always being there to help and support you. Dentsu Q-Pro will be an exciting challenge in a new area of communication. I am looking forward to the assignment,” added Barua.

  • Fresh and Honest Café launches ‘Alive!’ filter coffee powder

    BANGALORE: From selling Coffee Vending machines to adding retail of branded packaged filter coffee- it’s taken Fresh & Honest (FHCL) a decade to make this particular increment to their portfolio. FHCL today announced the launch of Alive, a new filtered coffee brand in Karnataka.

    The brand was launched in Tamil Nadu (TN) earlier this year on 27 February. A Kerala launch is scheduled for the first week of May, with an Andhra (AP) launch planned for mid May. Nationally, the brand will be rolled out by June end.

    The launches are currently South India focused because 90.2 per cent of filter coffee consumption happens there, with West India following at a far second place with 5.2 per cent of the consumption pie, closely followed by the North of the country with a three per cent, the rest of the consumption happening in the Eastern Zone of India.

    The Indian Filtered Coffee market is estimated to be around 20,000 Tons and Rs 3 billion in value, with 53 per cent supply happening from the organised sector and 47 per cent from the unorganised sector comprising of small shops that provide a mix of chicory and coffee in varying proportions.

    Alive will be 70 per cent coffee and 30 per cent chicory. The top nationally branded player in the market is HLL’s Bru with a lion’s share of 68 per cent followed by Tata’s who command a meager eight per cent of the market share. A local player in TN, Narasu, contributes 13 per cent to the pie, with the rest being shared by smaller players. FHCL plan to have Alive capture 10 per cent of the market share (approximately 1000 Tons) in the first year itself and catapult to the second or third position, depending upon which players share they can eat into.

    FHCL will be spending Rs 20 million on its marketing/ad/promotion campaigns in the next two months.

    A print and media campaign is planned and has already commenced in TN. A TVC has been aired on Sun, Raj and Vijay channels along with DD’s rural channel in TN.

    FHCL CEO R Shivashankar claims that the TV ad campaign has been so successful in TN, that he has already received enquires for export since “Sun has an international audience.”

    Local TV cable channels are another avenue that FHCL may use. The creative work for the TVC has been done by Rediffusion; the TVC is produced by Chennai based VKP at a cost of Rs 4 million. Another TVC is being shot at present according to Ravishankar, who plans to spend Rs 20 million plus towards promotion (excluding the cost of the TVC’s). All creative ideas and media business is handled by Rediffusion.

    Aroma, colour, taste and the right bitterness are the factors that control the drinkers preference for a particular brand as per FHCL’s research. To attract customers, FHCL claim that their latest offering is a rich, roast and ground coffee. The product is priced at premium of 10 per cent vis-?-vis other players.

    FHCL claim that their technology is a first in India – the fresh coffee beans that go into the preparation of ‘Alive!’, are subject to both drum and air roasting processes and each grade of coffee bean is individually roasted to release its full flavor.

    Another industry first is packaging – Alive will be packed in high optical density metallised polyester material with nylon poly inner layer for better moisture barrier and aroma retention properties, is available in 50, 100, 200 and 500 gms retail packs in the market.

    Aggressive direct awareness creating initiatives in Karnataka are also on the anvil. FHCL plan to induce mall, department and large store customers to sample a cuppa and purchase a packet of Alive, as also visits to residences to sell the first packet. This has worked quite well in Chennai and the number of repeat customers has been far in excess of expectations according to Shivashankar.

    In the mean time FHCL claim that their imported Italian machines dispense six million cups of hot and cold java and other drinks every month from their 2300 coffee vending machines sold from their 15 branches and 22 cities in India.

    The vending machines are located in five start hotels, corporate offices, and in Barista, which happens to be a group company. FHCL plan to use the FMCG distribution route instead – 14,600 outlets in TN, 11,400 in Karnataka, 10,700 in AP and 4,100 in God’s Own Country.

    FHCL is a part of C Sivasankaran Sterling Infotech Group of companies along with Barista (which was acquired some time ago), Dishnet Wireless, Aircel and Aiwo (restaurants).

  • OgilvyOne UK Wins at Campaign Direct Awards

    MUMBAI: OgilvyOne’s campaign for Cancer Research UK dominated the 2006 Campaign Direct Awards. The “still here” bench was given the Campaign Gold Award (the only gold awarded) as Best Overall Execution and also took silver for Best Use of Outdoor.
     
     
    Other elements of the “still here” campaign won category-winning silvers for Best Use of Press and Best Use of Broadcast.
     
     
    In addition to these four winners, OgilvyOne also had five additional finalists, two of them for yet more elements of Cancer Research UK, plus one apiece for BT, IBM and Cisco.
     
     
    This was the culmination of a terrific run of awards for Campaign Research UK, which took the only UK Gold at Cannes Direct in 2005 and a number of awards at the Direct Marketing Association show.
     

     

  • Orange crosses one million customer mark

    MUMBAI: Cellular service provider Orange has announced that it has crossed the one million customer mark in Mumbai. In continuation of its aggressive plans for the country’s fastest growing cellular market, the company has announced a further investment of Rs. three billion in Mumbai for next year.
     
     

    This will take the total investment in Mumbai to Rs 11.5 billion. The fresh dose of funds will go towards expanding the network infrastructure and improving the coverage footprint for both outdoor as well as deep in-doors all across Mumbai.

    This has been a good year for Hutchison Max Telecom. Besides Orange Hutch in Delhi also crossed the one million mark. The group crossed over four million customers across its ten circles this month. Hutchison Max Telecom MD Asim Ghosh was quoted in an official release saying, “Today, we serve over a million customers, who say ‘I speak Orange’. It has been a wonderful eight years and I thank the people of Mumbai for giving us their vote of confidence.”

    Currently Orange has the largest number of cell sites deployed in Mumbai amongst all operators (including GSM as well as non-GSM operators). Orange covers Mumbai with over 650 cell sites. Orange plans to retain capacity leadership in the city with an additional deployment of 170 more cell sites.

    To improve voice quality, Orange has successfully deployed the “Intelligent Optimisation Service”, a cutting edge technology software from Motorola. This provides optimal use of spectrum, leading to a superior voice quality. To enhance its data services and to allow a better throughput, Hutchison Essar will soon be launching Edge as a country wide initiative. The release adds that the investment in Mumbai alone will be around Rs. 200 million for the project.

    Hutchison Essar operates cellular services currently in ten circles. They cover 70 per cent of the country’s purchasing power – Mumbai, Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka, Rajasthan, Haryana and Uttar Pradesh (East).

     

  • Omnicom opens office in China

    MUMBAI: Advertising, media and communications firm Omnicom celebrated its 20th anniversary with the official opening of its office in China by Omnicom president and CEO John Wren.

    Wren says, “China is a key strategic market for Omnicom. The opening of this office is a clear illustration of our commitment to the region. We are delighted to be celebrating our 20th anniversary in China, and it is symbolic that our office is opening here in this milestone year for the group.”

    Omnicom vice chairman and chairman and CEO Asia Pacific Michael Birkin says, “For over 20 years, our agencies have led the way in terms of creativity and innovation, which is demonstrated through the strength and recognition of our brands as among the world’s best. We will continuously look to build on this success in China and across the region, by delivering innovative marketing and communications solutions to our clients”.
    Under the Omnicom umbrella, many of the Group’s agencies have already established strong networks in
    China. These include global advertising brands BBDO, DDB and TBWATequila; specialist media-buying company OMD; public relations brands Bentley Communications, Fleishman-Hillard and Ketchum Newscan; brand consultancy firm Interbrand; interactive agency Tribal DDB; and field marketing company Unisono Fieldmarketing.

    Last month Omnicom acquired a majority ownership interest in Unisono Fieldmarketing International Limited, a field marketing company based in Shanghai, China. Covering over 25 cities, it offers channel solutions to consumer, pharmaceutical and other service industries based on a powerful Point of Purchase (Pop) satellite mapping and field force management and reporting system.

    Omnicom says that the addition of Unisono Fieldmarketing demonstrates its determination to offer clients a comprehensive range of quality services across China, and we will continue to seek further opportunities to expand our portfolio and attract the best talent in the business

  • C&G not to sponsor England Cricket Boards ODI competition

    MUMBAI: The England and Wales Cricket Board (ECB) have said that Cheltenham & Gloucester will not be renewing their sponsorship of the 50-over domestic one day competition after the current season.
     
     
    ECB chairman David Morgan said, “We thank C&G for their support during the last five years. We are grateful for their input into a competition which is the breeding ground of future World Cup cricketers.”
     
     
    C&G have partnered with the ECB since 2001 but have decided to look at other avenues, which are more in-line with its current marketing objectives, after this season’s competition, which culminates in the traditional Lord’s final on 26 August 2006.
     
     
    C&G marketing head Ian Whittaker said, “We have had a fantastic relationship with the ECB over the years and the partnership has been a great success. We hope that the last C&G Trophy, which takes place in 2006, will be one to remember and we wish the ECB and any future partner all the best.”
     

     

  • Ray Romano to publish children’s book

    MUMBAI: The star of the sitcom Everybody Loves Raymond is extending his reach into other areas of media.

    Raymie, Dickie, and the Bean: Why I Love and Hate My Brothers is scheduled for publication next year. It tells the funny and true story of why brothers can be gross, disgusting, and downright mean but still love each other. The book is based on Romano’s experiences growing up with his two brothers, Richard, a retired New York police sergeant, and Robert, a New York City school teacher. They are writing the book with him. The book will be illustrated by children’s book artist Glin Dibly.
     
     

    In India, the sitcom airs on Star World. President and publisher of Simon & Schuster Children’s Publishing Rick Richter added, “Everybody does love Ray Romano. Romano’s book is a funny, loving, and real look at what it’s like to be a big brother (and a little brother). Anyone with a sibling will love this book.”

    Ray Romano said, “When my brothers and I were not fighting with each other, we had a lot of fun growing up. Now it is great as adults to collaborate with them on this book and fight with each other once again.”

    Romano further admits that he always knew he could make his friends laugh. However he never really gave standup comedy any serious thought until an open-mike night at a New York comedy club in l984. He did well, the bug bit hard, and Romano was smitten. After several odd jobs, including futon mattress delivery boy, he decided to pursue comedy full time.

    An official release informs that Romano’s regular appearances at comedy clubs throughout the US led to guest spots on The Tonight Show Starring Johnny Carson then with Jay Leno, and finally on CBS’s Late Show with David Letterman. Letterman recognised his talent and offered him a development deal with his production company Worldwide Pants. From that association Everybody Loves Raymond was born.

  • Will the new scripted dramas make an impact?

    Will the new scripted dramas make an impact?

    After two years, finally, some light ahead on the narrative television sightscreen? Hindi entertainment certainly needs it. 24 April will witness the launch of five new scripted dramas across the GEC channels, with three other prime time shows subsequently lining up for launch during this April-May phase.

     

    The K-shows continue to have a clamp on share of audience, but on share of mind, it has been the reality and gameshow genres that have held sway since 2004
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    One would really hope that some of these offerings hit bulls eye since it’s been a while since scripted drama got front row mindspace on Hindi entertainment television. It was way back then, in September 2003 to be precise, that narrative entertainment made headlines and IMPACT when Star Plus’ Kahiin To Hoga and Sony Entertainment’s Jassi Jaissi Koi Nahin debuted almost simultaneously on the small screen.

     

    What of Balaji’s K-serials, one might ask? True, the K-shows (let’s not forget Kahiin To Hoga is one as well but it is different) continue to have a clamp on share of audience, but if one were to look at a share of mind + audience combo, it has been the reality and gameshow genres that have held sway since 2004.

     

    If end-2004 and beginning 2005 belonged to SET’s Indian Idol, the second half of 2005 belonged to Star Plus’ KBC2 and Star One’s Nache Baliye and The Great Indian Laughter Challenge (TGILC), with Zee TV’s Sa Re Ga Ma Pa Challenge also making a year-end splash.

     

    Barely have the viewers gathered their collective breaths on these shows, we’re already into Star One’s TGILC 2, Sony’s Fear Factor India and Zee’s Sa Re Ga Ma Pa Ek Main Aur Ek Tu.

     

    It is pertinent to note that even Star, which has had by far the most success on its narrative offerings, would have reported a rather flat year had it not been for the success that KBC2, TGILC and Nache Baliye provided.

     

    Now coming back to the narrative tale, it has happened abroad, with scripted drama making a grand comeback thanks in particular to extremely strong and successful worldwide successes such as Desperate Housewives, Grey’s Anatomy and Lost.

     

    Star, which has had by far the most success on its narrative offerings, would have reported a rather flat year had it not been for the success that ‘KBC2’, ‘TGILC’ and ‘Nache Baliye’ provided
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    In India meanwhile, it is refreshing therefore, to know that in the middle of all this format overdose, Zee TV has been able to build a scripted success in Saath Phere – Saloni ka Safar (not your regular saas-bahu weepy) that rode beyond the spike provided by Sa Re Ga Ma Pa Challenge. That is critical if such efforts are to get acceptance. Because while mind share is fine, the brutal truth is that the moolah is in audience share.

     

    To quote Star Entertainment India CEO Sameer Nair: “Going by the theory, ‘People watch programmes and not channels,’ you require really strong magnetic programming to be successful. TV programmes and channels are going to further focus on the differentiation.”

     

    More power to the drama is what we say. And since so much of television in India gets its cues from cinema, here’s hoping that the box office success of offerings as different and diverse as Rang De Basanti, Malaamal Weekly and Being Cyrus is reflected on the small screen as well with the new shows that are set to debut. And those which follow.