ITV

Category: Executive Dossier

  • ‘Acting is about good characterisation’ : Neena Kulkarni

    That Neena Kulkarni is a good actress has been well acknowledged in the world of Marathi stage, cinema and television. Unfortunately Hindi productions haven’t been as kind and she has been generally typecast in the good mother role. However, even in these stereotyped situations, she has managed to impart her own distinctive stamp to the characters she portrays. Kulkarni has carved a place for herself among Marathi language audiences with the central character of Tara Rani in Smita Talwalkar’s historical venture Peshwai, which recreates the Peshwa era, in a tele-series currently being aired on Zee Alpha. What has given her greater exposure though, has been as Gulnar in Sony Entertainment Television’s Heena as actress Simone Singh’s compassionate mother-in-law. Gulnar made Kulkarni a household favourite.

    A graduate in Arts from Mumbai’s Elphistone College, with French as her major, Neena’s tryst with theatre began when she was just nine years old. She was a regular in the skits organised at the Makrand Society colony in Mumbai’s western suburb of Mahim, where she grew up and resides even today. She continued with theatre and carved out a place for herself as a serious and committed actress. Later, she moved to television and started afresh by playing mother roles like “any newcomer”, quips Kulkarni, who says she was aware that she would get categorised as a character artiste when she took the plunge into television. “Given my age and the fact that I was entering a new medium, I couldn’t have been choosy,” she concurs. Kulkarni, who has done a variety of “mother roles”, says she has managed to bring a range of performances within the set character and has no qualms being labelled a character artiste. “The character of Gulnar (in Sony’s Heena) has created a sort of stardom for character artists if I may say so and has at least made me view character artistes differently,” says Kulkarni.

    Indiantelevision.com’s correspondent Harsha Khot met Neena Kulkarni at her residence and found that she enjoys playing character roles as much as central roles. Excerpts from the conversation:

    With an interesting track record as a theatre actress, what prompted you to join television?
    In 1997, we faced financial constraints in the family. My husband was not keeping well and my children were growing up. Being a mother, I did not want to be away from home for long. It’s during that time Ashok Saraf approached me with Chutke Bajake. Since the serial was going to be shot within the city and required comparatively less travel time, I considered the proposal and got into television serials. Not that I was new to television, earlier I had worked for Doordarshan as an announcer so that helped me. It wasn’t an entirely different medium.


    Neena Kulkarni with Bikram Saluja in Panchi

    ‘I am a director’s actor and would expect the director to know what is what’

    What things do you consider while giving commitments to a role or project?
    The scripts generally come to you in a verbal story form. Ideally scripts of television serials spring from a seed based on an idea, a central story theme which can be developed over a period of time. And in the case of television serial scripts, you don’t have a bound script, unlike those written for theatrical plays. After hearing the story, I basically mull over the kind of role that I will be playing, and generally I am considered to be in the mother category. Nowadays I also make it a point to consider the production house and most importantly, the director.
    The television serial has become a “try-out” medium and I did come across it, especially in the beginning. Because of this I felt absolutely frustrated and it gave me a lot of heartaches. Many channels were coming up and joining the bandwagon so to speak, which gave openings for a lot of inexperienced wannabe directors and somehow I got stuck with them.

    I am a director’s actor and would expect the director to know what is what. But at the time I had just stepped into television serials and was quite nervous, especially since the directors weren’t of much help. I had to face a few directors who had the attitude: “I know as much as you do or maybe even less, let us just try this out together.” That used to get on my nerves. I was very vulnerable and felt that if the director doesn’t know what I am capable of and I don’t know what they want me to do then things may not proceed in a proper manner. However, I stuck with it.

    What made you stick around?
    Financial constraints and hope. I was hopeful that things would get better. Television is a technical medium, not an experimental one. Since I have a theatre background, I would try to put in my best, but would many a time get frustrated looking at the way a lot of other people took things so lightly. But that is where I realised the difference between the theatre and television medium and that there were many other things to learn. I learnt not to jump into any project, and that in television you need not get extremely serious while enacting the character. Now I tend to take up only projects which come to me through reference and this has sorted out the earlier problem.

    ‘The idea is to show more of character with a lesser touch of your own personality’
    Receiving the best actress award from evergreen hero Dev Anand for her role in Dhayaniman.

    When did things change for you?
    Towards the end of last year I just sat at home for three months debating whether to give up television serials altogether and stick only to movies. I was pondering over why I enjoyed acting in films more than television even though the ‘acting’, which is common to both, is what I liked the most. I became more selective about directors. I recollect playing the role of an old lady in Vikas Desai’s Jootha Sach with Sachin Khedekar. It didn’t do too well, but it introduced me to a good production house, Cinevision. Manish Goshwami of Cinevision may haggle over money and dates but once the project is finalised he sticks to it.

    Who are your favorite directors?
    Javed Sayeed who made Heena, he is an editor actually. Then the director of Aatish, where I play an old women. Sanjay Upadhaya changed my whole outlook towards serials. He is a good director and knows how to get the best out of his performers. For instance their (Upadhaya’s team) approach to dileanating a character is somewhat similar to what is done in films. Through discussions with the director, the details come out gradually with lot of inputs from both sides. Upadhaya makes us work like dogs getting 10 to 15 scenes done, but at the same time he is particular about time. If the shoot is scheduled at 9 am then it happens then. He and his team treat the project like films in a way.
    I had a problem with the way Javed Sayeed functioned when I first began working in Heena. He just wouldn’t handle actors carefully but later with every schedule and episode of the serial he improved as a director while I improved as a tele-serial actress. He has shown that a very capable editor can become a very capable director and Heena proves it. It is one of the top ranking serials and it’s mainly due to the way it has been written and edited. Today I am very comfortable with him because I can understand him.

    Why do you feel an actor should not give away too much?
    Maybe this is an old way of thinking, but acting also means characterisation. Naseer (Naseeruddin Shah) and Paresh (Rawal) do that, likewise I too characterize the role. Acting by itself is nothing, it’s about building up the background of the character also. They blend with the role so well, showing a little part of themselves but yet not revealing too much by focusing on the profile of character. The idea is to show more of character with a lesser touch of your own personality.
    If I didn’t follow this then I would soon get bored. Besides, the day I get bored I’ll leave this field. By way of characterization there are still a few variations of a particular character still remaining to be explored. And since I am playing a variety of characters that makes work interesting. I don’t think all mother roles are the same. The characters I play are very human and yet quite different from the typical doting Hindi movie mother. They say ‘beta’ all the time. I am in the character actress bracket but I am surprised that within this there is so much potential for variety.

    What do you dislike about television?
    Everyone is working so fast to give or complete the episode that at times the actor becomes quite bale. As long as you say the lines properly it is okay. At times due to various constraints the shots are okayed even if they might not be perfect. There are quite a few people who are not serious actors and who are in this field because they happen to be good looking. Who spend their time on the sets yap-yap yapping away. Then there are people who are on a signing spree doing many serials at one time, while some are here for ‘time-pass’, which can get quite annoying.


    Performing the role of Kasturba, opposite Naseerudhin Shah in the celebrated play Mahatma vs Gandhi

    		How could the problem be solved?
    A lot of actors sign a lot of serials at one time. I don’t blame them too much. The problem lies in the fact that a channel starts a serial with four to five options in mind. And at times the circumstances are such that to get a known face they give them so much money that they are willing to compromise on other people.

    Is that the reason why we often see people being replaced in serials?
    Probably. The systems in place lead to a lot of insecurity. Then there are actors willing to work for lesser pay which makes even good actors go on signing sprees. The thinking being that you never know when the tide may turn against you. I feel that production houses should assure the actor about the contract and have some consistency in their dealings. And if there are sudden changes at an actor’s expense then she should be compensated. I wonder if this will ever happen though.
    I still think people shouldn’t do too many serials as they are a killer as far as an actor is concerned. Ideally, I would like to take only a serial at a time but that doesn’t usually happen. At one point I did a whole lot of pilots and they finally went on the floors over a period of a few years.
    Then it becomes terrible. There was a time when nearly seven serials of mine were in various stages of production at the same time and it was a killer. It was absolutely maddening even though they weren’t meaty roles.

    How did you manage to work simultaneously in seven serials?
    It was because of my quick thinking. When you are in theatre you do tend to become a quick thinker. Soon I realised that you shouldn’t take serials as seriously and intensely as theatre. Earlier, I was trying to put in the same intensity as in theatre and it was affecting me. I was getting frustrated because everyone around me seemed as if they couldn’t care less. I spoilt my health, my sanity. I started hating acting and going to the sets. Serials are a quick business.

    How did you take control of the situation?
    Between September and December, I sat at home and thought through the whole thing. Why do I like films more than serials when the roles in serial are also good? I was also doing film, because they give some time to the actor to understand what the role is about and not take actors for granted.

    Channel interference was getting very irritating. For instance pulling the serial off the air abruptly, but on the other hand maybe it is for the better. It is irritating certainly, but now there is some purpose to all this, asking for certain actors.


    Kulkarni as ‘Gulnar’ in Sony’s Heena with lead star Simone Singh.

    ‘When I came to serials my expectations were nil, because I was aware that my age fitted into the mother’s slot’

    How do you work on your roles? Is acting in television easy?
    Serial is more of spontaneity than anything else. Probably that is the reason most newcomers are doing well in serials without any background or any training. It is not about how well trained an actor you are. So I decided to use both together. I have picked up the skills over the years, self-taught by my peers, taught by my gurus. I don’t read too much in the scene and the scripts are generally written one day in advance. But no, acting is not easy. Very few people survive serials and move onto the big screen, which is the true test. That is why you see 20 new faces but hardly one or two of them making it to the big screen.

    How do you work on the character you play? How do you make them appear different from each other?
    In Heena I was aware that the “Gulnar” was one of many who would behave like any ordinary human, so to add realism the character wore a louder coloured sari, deeper make-up with traditional surma and an Urdu accent. How I did it I don’t exactly know but I am not ashamed to ask questions. I would ask director Rajiv Verma to correct my pronunciation of Urdu vowels. Likewise in Varis where I play a rich widow I wear a stark white sari to give that kind of look, while in Aatish, I wear plain sarees which old women generally wear. And I would never apply unnecessary make-up or nail polish unless the role really requires.

     

    Of the roles you have played, which are your favourite ones? Why?
    My role in Heena has become close over the years. Three years as Heena‘s mother-in-law. While Tararani is what gives me a kick which is why I really do not mind travelling all the way to Bhor for shoots.


    ‘Kasturba’ and the ‘Mahatma‘.

    How was it adapting from playing central roles in theatre and a few serials to later getting categorised into roles of character artiste?
    When I came to serials my expectations were nil, because I was aware that my age fitted into the mother’s slot. I have played numerous middle-aged characters in theatre. In theatre the central characters are now the side characters in serials and movies. Nevertheless I enjoy the electronic medium. I have mostly played downtrodden characters, which require some acting potential. Besides I can’t do theatre any more because of health reasons and the kind of travelling it requires. Otherwise the roles would have to be meaty enough to make me want to take it. So far I have had a very satisfying theatre life, besides I strongly feel commercialism and theatre don’t go hand in hand.

    Which other roles are close to you?
    The one in Peshwai. The story is very good and so is the team. Economically it is not lucrative, obviously there has to be something very exciting for me to overlook that factor. I play the central character Tara Rani who was a very fascinating women and towards the end the role has certain shades of grey. Smita Talvalkar’s Peshwai is capturing the Peshwa era on the screen. I have never done a “real” character. The story is about ‘Tararani’ wife of Chhatrapati Shivaji’s younger brother Rajaram. After Shivaji died his Shahu was supposed to take over the reign’s but he is held captive by Mughal king Aurangzeb.

    After Rajaram dies and in the absence of Raja Shahu, Tararani takes care of the Peshwa kingdom for 18 years till he returns. The story starts from the point where Shahu is released after Aurangzeb dies and returns to claim the throne. It is then that Tara Rani, who has ruled the kingdom for 18 years, starts questioning herself about giving up the reins of power. She is very upset about giving it away. His only claim to the throne is as a birthright. That is when the grey shades seep in.
    Of course Shahu eventually takes the throne. Tara Rani was eventually imprisoned and lived till 86. Even while in prison she does not lose her spirit and despises Shahu and writes letters about what an opportunist he is. Peshwai spans 100 years of which she lives 86. The role is really challenging.

    How did you go about sketching character of Tara Rani?
    The character is shown in the range of middle age to old and all along with it I changed my voice accordingly. As a woman in her thirties when she takes up the throne her voice is slightly shriller and as she ages it becomes more and more base. At the moment in the serial she is 50 years old and it will continue till she is 86. So there is a range that I am playing which is a great challenge.

    Theatre has helped me. Because of theatre I keep a graph to my character. Today normally even the assistant comes and briefs you about the situation and connects it to the scenes shot before and after. Once your graph is clear then there is spontaneity.

    Are there others on air that that you rate as good?
    I think Neena Gupta has done marvellous work in Saans. How I wish I could do the same! She is the producer and director at the same time.

    Another serial is Saaya. I like the way Sanjay Upadhaya has handled it. It made me want to work with him. Alpaviram is another good serial. The lead Pallavi (Joshi) has tremendous potential as an actress and somebody should use it. My daughter aptly put it: ‘Pallavi has done the best acting while in in a coma.’

    I would really love to do what Neena has done. I am aware that I have the potential and the capability of writing and producing a serial.

    So how soon would you be exploring it?
    I am very family oriented, my kids are my first priority. Besides I fear that it will kill the actor in me because the focus would shift from acting to writing. If you are concentrating on one creative activity and take up a second simultaneously, then there is a drift of creativity from one to the other. I experienced that while writing for Loksatta, a Marathi newspaper. My focus shifted from acting to writing.

    How do you revitalise yourself?
    What you need is tenacity, I often look back at the work I have done. Educating Rita by Santandev Dubey. I cannot afford to expect this from a television serial.
     

    How do you work on the acting?
    Many a times by getting into the role, that is my way. It is a little bit of method. When I know a character, what is her background and look closely into the social background, lower middle class or upper middle class. If it is lower middle class out with the nail polish, jewellery. There are little things that others may not think of that automatically come in. I am particular about this and it is very satisfying. Each role is different so I don’t get bored.

    Some say getting into the character is a myth, could you explain?
    No I don’t think it is a myth. Getting into a character is more of concentrating till a certain point while playing the character. In Ankahee there is a bedai (when the girl leaves for her in-laws place after marriage) scene where there is an argument between me and my daughter and I don’t use glycerine. It is because of my theatre background and it comes naturally to me now. I have learnt all this. It’s memory of emotion, Stanislovsky method, sur (sound). And it still fascinates me.

  • ‘Our goal is to increase our audience share to 25 per cent’ : Pix business head Sunder Aaron

    ‘Our goal is to increase our audience share to 25 per cent’ : Pix business head Sunder Aaron

    When Pix launched four years back, it had to be content with library movies. Now the English movie channel has evolved into a stage where it can air current titles to draw in younger audiences and nurture ambitions of competing successfully with Star Movies and HBO.

    A focus area for Pix will be to aggressively get into the action genre.

     

    An important mix on the channel is also non-film content including football.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Pix business head Sunder Aaron talks about the channel‘s progress over four years.

     

    Excerpts:
     

     
    What factors prompted Pix to change its positioning to a blockbuster channel?

    Our positioning as a premium Hollywood movie channel has not changed. We are still about telling good stories. It is just that our programming strategy has evolved. Our game plan in 2006 was to transform Pix into a current film channel. We are following the path that we had laid out for ourselves when we launched the channel.

     
    What was the plan in 2006?

    When we launched the channel, we mainly had library movies from Sony and MGM. We also had all time favourites like Jerry Maguire. We still have those but they do not dominate our primetime as much as they used to. We knew that four years down the line we would add current movies and be as current as HBO and Star Movies.

     
    So new films have to be part of the recipe for a successful English movie channel?

    We have learnt that brand new current films are the prized assets in this genre. At the end of the day, that drives spikes in viewership. As long as there are enough spikes, the overall welfare of the channel and its profile will rise. You will see the movie channels that have current films – HBO and Star Movies – excel.

     

    You can have other kinds of films but it is these big, current films that will drive the channel. Within these current films, it is the action genre that is the most valuable and the most attractive. This is what our focus will rest on.
     

     
    Any other lessons that you learnt from the last four years of Pix‘s operations?

    Yes, subtitling. To widen the reach, this is an important tool. We avoided it for a while but our viewers asked us for it. This led to an increase in reach. Shadows of Time, for instance, did well in the six metros. It is a Bengali film with subtitles. Subtitles make it easier for viewers to understand the film.

     
    Is it fair to say that older movies do not have much traction due to the niche nature of this genre?

    You have raised two points. The English film genre is not niche anymore. If you look at it from a cable operator‘s point of view, they must have English movie channels. It is as essential as a sports channel.

     

    One reason why older films do not as work as well is that the audience likes films that are current and sexy. The newer films appeal to the younger generation. Library films have less action and special effects. The style of cutting and editing is different from the way it is now.
     

     
    ‘We will have more current films. Our audience will also be more youthful and we will have a wider reach across the country‘

     
     There are already two channels that showcase blockbusters and aim at becoming bigger and better. How will Pix differentiate itself?

    We operate from India. Star Movies is operated out of Hong Kong, while HBO is based out of Singapore. The fact that we operate out of Mumbai allows us to be more hands on.

     

    We actually do local programming like Chicks on Flicks. We also have sports properties like the FA Cup. Thanks to the World Cup, the soccer fans have grown.

     
     
    What goals have been set for the year?

    Our ultimate goal is to increase our share to 25 per cent and be on the same level as Star Movies and HBO. Right now our share is around 20 per cent. We want more youth tuning in. The current films are aimed at broad basing our reach.
     

     Pix went for a design and look makeover. What was the aim of this?

    We want to draw in younger audiences. It is not that older audiences are not useful but the fact is that the youth are the demographic that advertisers target.

     

    The channel looks slicker and is more attractive visually. Earlier the look we had was too static and flat, colour-wise. Now there is more dynamism.

     
    Is Pix going to create time slots that appeal to different TGs?

    We already have slots like Super Movie of the Month and programming tailored for the afternoon. Our share and time spent has grown though the category as a whole has fallen.

     
    Does the English film genre face fresh challenges this year?

    Scarcity of product is a natural issue. The increase in prices and fragmentation are other issues. We are clever about how we deal with suppliers and where we find our movies. We track viewer feedback regularly. If somebody sends us an email, we read it and even respond sometimes.

     

    Attention spans are changing. People are flipping channels a lot more. Luckily at Pix the time spent has been increasing. This shows that our films and promotions are better.

     
    How much library content is on the channel and what are the big properties coming up?

    Our ratio is the same as our competition. We are airing The Hurt Locker which is a big one. So for two years in a row, we will be airing the Oscar winner for best picture. The other movies include Hot Tub Time Machine, District 9 (science fiction) and New York I love You.

     

    The aim is to have at least one blockbuster each month. Then we have films that are not big blockbusters but are also premiers. If it is really good, it goes into the handpicked movie slot.
     

     
    Have you changed how the weekend is programmed?

    No! We still promote the 9 pm movie. We had the properties Cheap Thrills and Damn Good Drama, but we got rid of those.

     

    How tough will it be to get current films given the fact that major studios already have output deals?

    It is a challenge. We have to be resourceful in terms of finding films that make the channel look good and elevate our level of programming. 

     
    Do Sony‘s films come to Pix first now?

    No! Their films go to HBO first. That output deal is still on.

    Is local content like shows going to be more important going forward?

    It is a distinguishing factor. We have Chicks on Flicks. And we are looking at a couple of other concepts. Gateway (the show done with Ashok Amritraj) will return eventually. It is a complex series that takes planning and it will come back with a new judge. The celebrities on the show have to commit to four to six weeks of shooting.
    We are looking at Hollywood-based film shows. They are useful as interstitial programming.

     
     
    Are you looking at expanding your base into smaller towns?

    It is costly to do marketing there. The focus has to be on the primary target market – which is metros. Beyond that, we do tie ups to reduce costs in secondary and tertiary towns.
    This Is It was an interesting experiment. Since it is a musical and it transcends language barriers and has Michael Jackson, we did promotions in regional languages.

     
    What marketing activities will Pix do this year?

    We will do a brand campaign when we air The Hurt Locker. This will reinforce the new content on our channel. The Hurt Locker is the kind of film that will pull in a wider, more mass audience.

     
    Are out of home activities important?

    Yes! It is important for a channel that is local to behave in a local manner. The Pix Movie club was launched a couple of months back and the response has been strong in places like Mumbai. PVR is our partner and they are also happy with the outcome. You need events to connect with viewers directly on a regular basis.
    We had Hollywood Pix Your Brain last year. This was a trivia quiz. It will return. With This Is It, we did activities in malls like flash mobs. We also did a four-city legendary Michael Jackson tribute. Music groups paid tribute to the late pop star.

     
    What role does digital play?

    It is important given that this is where the youth spend a lot of time. On our site, you can get mobile reminders. We do online promotions. Certain films lend themselves to online promotions like This Is It and Slumdog Millionaire. The budgets are not big and so online is a better way to go about as it is a targeted promotional activity.

     

    Is Pix planning to launch more channels?

    Eventually, we will. We will start with digital platforms, but you will not see another Pix channel for a year. There are channels that launched but fell by the wayside. We do not want that to happen.
     

    Where do you see Pix a year from now?

    We will have more new, current films. Our audience will also be more youthful and we will have a wider reach across the country. The aim is to also have better viewership in secondary and tertiary towns.
  • ‘We want to be the No. 1 channel in two years’ : Sony Entertainment Television business head Ajit Thakur

    ‘We want to be the No. 1 channel in two years’ : Sony Entertainment Television business head Ajit Thakur

    Struggling to jump into the top Hindi GEC league, it was a year back when Sony Entertainment Television decided to undergo a complete overhaul. New programmes were introduced and a new association was inked with the biggest film production house, Yash Raj Films, to produce soaps that were different both in narration and production value. While not all could fetch the requisite numbers for Sony, they did help the channel cover quite a distance – from a 80 GRP mark to a peak of 180 GRPs.

     

    Now as Sony enters into its next phase of growth, it is betting big on the decade-old KBC, helmed by Bollywood legend Amitabh Bachchan. Sony believes that the property, infused with fresh innovations,will do more than just getting the numbers: it will help the channel change its fortunes.

     

    In an interview with Indiantelevision.com‘s Anindita Sarkar, Sony Entertainment Television business head Ajit Thakur speaks about the channel‘s programming plans at large.

     

    Excerpts:
     

    How challenging has been the last one year for you at Sony?

    Sony is a great brand but in the last couple of years it had not lived up to its potential. Now as I look back one year from the time I joined, we have achieved a lot and the credit goes to the brand. It has always been so strong that every time we do something that is targeted at our audience right, we always get results.

     
    So what has been the focus for Sony?

    The focus in the last one year has been on three things. The first one of these has been research. Audience taste in this country is shifting every 1-2 years and, therefore, we were very clear that everything that we do has to be supported by rigorous consumer testing and extensive research to enhance our consumer focus. And research is not just to track but also to forecast the future trends.

     

    The second focus for the channel has been to strengthen as pioneers in new programming. We got in a wide variety of shows ranging from the Yash Raj banner which were very diverse in terms of content and production value to something like Crime Patrol. We also made Aahat into a daily and Indian Idol, which had been traditionally a weekend property, was shifted to weekdays to give audiences a new experience. Also, no other channel has a daily thriller like CID.

     

    The third very important and conscious thing that we are concentrating on is to produce content that entertains the entire family – and is not just exclusive to women or men or kids. Also, the content should do more than just entertainment.

     
    But even after so many launches in the past one year, the channel is still perceived to be synonymous with CID while also deriving ratings from Indian Idol. Why so?

    Yes, CID is our flagship property and has been doing very well for us. So, if we have a strong property, why not build on it? We have extended the property to CID gallantry awards and we are thinking of CID comics towards the end of the year.

     

    Meanwhile, the growth has not come just from one property. We are slowly and steadily expanding on our properties. Now we have Indian Idol, then we will have KBC and we will be building one property at a time.

     

    Our other shows – Aahat, Crime Patrol and Boogie Woogie – are also fairing well for the channel. Baat Hamari Pakki Hai is picking up. And if you see, none of our shows is similar to the other. 

     

     
    But you still weak on fiction as compared to the rest of the competitors…

    Look, it has been a very conscious part of our strategy to give audience differentiated content. So, if you see, our programmes are very different from what is happening on all the other four channels. The fact is that from last June to this June we have seen an almost 100 per cent growth. Also, our primetime GRPs have grown from 40-75 GRPs. Meanwhile, in DTH households, we are the number two channel already. And DTH is a controlled environment where everything is in place and it is no more a Bombay-Delhi phenomenon. This shows that our content has future potential.
     

    Does that mean you do not want a successful soap on the channel?

    We do want to do a successful daily soap and build more on fiction but it has to be unifying and should be carrying a message. Also, we will not look at dragging a soap just for the sake of TRPs. We will look at finite properties that will help build the brand Sony and stand for it. We are expected to bring variety and target younger people. India has a lot more people below the age of 35 and Sony has a very high skew towards this audience segment. 

     
    ‘Now that it is time to enter the second phase of our growth, we want to kickstart it with KBC ‘

     
    Then why is it that even after bringing in young and differentiated content with the YRF shows and some other new ones too, it did not do much well for the channel?

    When we launched YRF, Seven and Mahi Way did fairly well. But all of them were not up to the expectations that the market wanted. However, when we went for it we actually knew that the content is ahead of its time in comparison to current television in terms of narrative as well as treatment. So we were the early adopters and the ratings did not come in the first season. But we have learnt that they will work if we be at it for some time and bring back new seasons.

     

    Also, another learning for us is that we shouldn‘t launch multiple properties together. Which is why this time we will bring back the shows one by one so that the audiences grow on them.
     

    When do you plan to bring back the new YRF shows?

    We will be launching two new shows from the YRF stable by the end of this year and the new seasons of two more properties will be launched next year. Apart from these, we will also be launching two other fiction properties by the year-end. 

     

    Why did you decide to bring back KBC despite it being an old property?

    The difference between reality shows and game shows are that reality shows are often very edgy and not suitable for the whole family. And since we are targeting the entire family, we knew it was time to bring back a game show on the channel.

     

    When we did our testing for KBC, everyone said that they would watch the show because it has knowledge, entertainment and Mr Bachchan. So they encapsulated the show for us very well and that has a huge implication for us. We are sure that apart from numbers, the show is going to generate huge eyeballs for the channel.

     

    Also, now that it is time to enter the second phase of our growth, we wanted to kickstart it with KBC. 

     
    What is your scheduling strategy? Which time bands do you concentrate on?

    Because a lot of our focus is on research, our scheduling strategy is pretty much about what is happening in the household. So we start our early primetime with soaps that are for the regular family and then as we go through the day, we move into non-fiction that is Indian Idol. Towards the end of the day, there is Crime Patrol, Aahat and CID as there is more of older audiences and men coming into the channel.

     

    Also, we are trying to keep as much of content on the channel to keep the family together. Earlier, it was just the weekends that would look at keeping everybody together – but now it‘s weekdays too.

     

    And the third thing is that while a lot of the channels are doing afternoons, we have opened up the late primetime at 11 pm as an original time band.

     
    What are your movie plans?

    We are actually looking at doing less and less of movies. About a year back, we were doing 4-5 movies a week. But now we are doing only two movies a week. And within this, we are looking at interesting titles. We have about eight programmes on the channel and we will repeat that during off primetime. We are also looking more at events.  
     

     

    What are the challenges and opportunities for Sony in this cluttered market?

    We want to maintain a steady growth curve upwards. We want to take optimal decisions in terms of investments and programming and don‘t want to take away the positioning of the channel. Our daily worry is what is the next new innovative programming that we need to bring in and what is the next new insight we need to catch from the consumers.

     

    The challenge for us will be to continue retaining our present viewers while getting in new audiences. We will also have to continue to build on our youth base – more from the smaller towns.
     

    So is there a GRP or position you have in mind?
    We want to be the number one channel in two years.
     
  • ‘Ad sector will see a double digit growth this year’ : Havas Media India & South Asia CEO Anita Nayyar

    ‘Ad sector will see a double digit growth this year’ : Havas Media India & South Asia CEO Anita Nayyar

    As the advertising industry prepares to come out of the slowdown clutter, Havas Media has found proper representation in India‘s two high-growth sectors: telecom and automobiles.

     

    While Maxx Mobiles came into the fold in 2009, the big catch this year has been Hyundai.

     

    Havas has almost 50 per cent of its revenues coming from the top five clients – Reckitt Benckiser, Jockey, Bank of Baroda, Max Mobiles and MTS. With Hyundai falling into the net, the top six are in a position to power the media agency‘s growth story in India.

     

    Havas will stay Delhi and Mumbai focussed while posting slow growth from its three southern offices – Bangalore, Chennai and Hyderabad.

     

    The big push will come from its integrated funtions – sports, digital and out-of-home.

     

    In an interview with Indiantelevision.com‘s Anindita Sarkar, Havas Media India & South Asia CEO Anita Nayyar speaks about her company‘s growth plans at large.

     

    Excerpts:

     
     
    How has the first half of the year fared for MPG India?

    We are on track as far as revenues and billings are concerned. On a percentage basis, we have met out targets quite in line with last year and the growth has come from both existing and new businesses. While our existing clients have fared better for us this year, the new businesses have also helped in pumping up the growth.

     
    But are you implying that 2010 has been similar to 2009 in terms of growth?

    Yes. We won MTS and Maxx Mobiles last year and Hyundai this year, all large and prestigious clients. And both telecom/handsets and automobiles are considered as categories doing well with minimal recessionary impact. We also won Dixcy, News X and M3M this year.

     
    As far as revenues are concerned, which clients and categories are the largest contributors?

    We have a client list that is upwards of 50 and across categories which include FMCG, telecom, automobiles, banking, mobile hand sets, beauty and wellness, media and real estate. About 40-50 per cent of our revenues come from our top five clients – Reckitt Benckiser, Jockey, Bank of Baroda, Maxx Mobiles and MTS.

     
    What are your expectations for 2010?

    We foresee a decent growth in 2010, given that 2009 was a recessionary year. Percentage growth in our integrated functions – sports, digital, and out-of-home – will be better as margins in offline business is pretty low.
     
     
    But has not out-of-home taken a hit this year?

    I don‘t think so. In fact, out-of-home has been doing very well for our clients and though it has not increased dramatically, it has surely not taken a dip.

     
    ‘About 40-50 per cent of our revenues come from our top five clients – Reckitt Benckiser, Jockey, Bank of Baroda, Maxx Mobiles and MTS‘

     
    Which are the geographical areas that show potential in terms of advertising?

    As far as we are concerned, we have five offices across India – Delhi, Mumbai, Bangalore, Hyderabad and Chennai and we expect our growth to come in primarily from Delhi and Mumbai. Growth from the southern market is slow for us.

    Overall, from the consumer‘s point of view, the potential surely lies in the semi-urban and rural areas.

     
    How are the other divisions faring – Havas Sports & Ent, Media Contacts and MPG active?

    All three are doing well and on an upswing. Havas Sports took up interesting projects during IPL like the strategic sponsorship deal and the Dhoni endorsement with Max. We are in the process of finalising some more deals. Digital is seeing an interesting growth and Media Contacts is encashing on the situation. MPG Active has been in the news for executing interesting campaigns including the one on INQ Mobiles where they executed the country‘s tallest billboard.

     
    How do you predict the 2010 advertising scenario to be like?

    We should hit double digit growth in 2010. It should be somewhere in the region of 10-12 per cent, though the pace is a bit slow.

     
    According to Tam, the first half of the year has seen a 36 per cent rise in TV ad volumes. Revenue, however, is not growing at the same speed. Why?

    There is too much of a fragmentation today and this is making it difficult to attract the consumer. There are multiple touch points today to capture consumer attention and you never know when and where the consumer will spot the advertisement. And though the ad volumes are increasing, we are not seeing much increase in ad rates.

     
    How much of a change has recession brought into the functioning methods of an advertising strategy?

    When recession‘s not around, we tend to work more liberally. However, recession always teaches businesses to get more from less and our business is no exception. This time around, it taught us to keep a tight watch on our purse string. It told us that we can do with lesser inputs, work, people and resources. Also, while there was a bit of retrenchment as far as our industry is concerned, it was more about not giving increments during the period.

     
    Which advertising platform is expected to show the maximum growth?

    Digital for sure. This is because the medium is progressing towards accountability and efficiency. The platform is seeing about 40 per cent growth year-on-year as advertisers are increasingly getting into the digital and media space.
  • ‘Sab is the only channel in India that is doing daily comedies’ : Sab EVP and business head Anooj Kapoor

    ‘Sab is the only channel in India that is doing daily comedies’ : Sab EVP and business head Anooj Kapoor

    The top three Hindi general entertainment channels punched hard at the second-tier channels with differentiated content, high-cost reality shows and big ticket movies. Barring Sab, the others such as Star One and Sahara One cracked under pressure.

     

    So what did Sab do right? It correctly positioned itself as a family comedy entertainment channel and brought in light-hearted content that worked.

     

    Sab had a basket of shows that crossed 1 TVR, catapaulting the channel to 101 GRPs for the week ended 12 June.

     

    The channel will stick to its low-cost programming but also introduce family-based reality shows.

     

    In an interview with Indiantelevision.com, Sab EVP and business head Anooj Kapoor talks about how the channel progressed in a difficult environment and what content is planned for its growth.

     

    Excerpts:

    The top three Hindi general entertainment channels are seeing high drama. How has Sab managed to march ahead in this adverse environment for the second-tier GECs?
    The channel has traveled a long way since its 28 GRP days that it used to collect two and a half years ago. We have even crossed 100 GRPs. Our progress happened after we repositioned Sab as a family entertainment channel. We aired daily family comedy shows, showcased warm and lovable characters and mixed differentiation with familiar content.

    The familiarities come in the form of joint family settings, female protagonists, and linear shows running from Monday to Thursday. The differentiating part is content that is light hearted and positive. We have the only set of shows where the consumer and ‘sasural‘ both love the female protagonist and the channel is as such the only one which has a brand slogan in the GEC sector. This helps in our positioning and it is now clear, specific and well defined.

    What led to this change of positioning of SAB from a youth to a comedy channel?
    Earlier the wisdom in the channel was one which felt the TG should be between the 16-25 years age group. But we forgot that the viewership pattern in India is different. There are more single TV households and it is the women who control the remote.

     

    Thus all prime time spots need the women onboard as that is the key. That‘s why all shows depicting women suffering, like dowry issues, female infanticides etc. which are such deep rooted stigmas, strike a chord with the audience that is predominantly female, and can empathise and relate easily to what‘s shown.

     

    We, on the other hand, are addressing the fact that times have changed, families are now more nuclear, and there is more balance and light-heartedness. We have barely done 50 per cent of what we can do, but consumers have understood the message we are sending-“Laugh as a family, than cry alone.”

    Has this led to an increase in advertisement revenues?
    Yes, in the last 30 months our advertising revenues have increased as well. Earlier we had just about 35 advertisers on board, but right now we have more than 60. Back then, Star One and Sahara were in the 70s and 80s as far as GRP‘s go and now they are nowhere close to us, even though they have bigger budgets. In fact even NDTV Imagine, which we are only marginally behind on the overall GRPs and now ahead of in the primetime Monday-Thursday slot, has a seven times higher budget than ours.

    Are you looking to come out with some high cost production shows in the future, seeing the current trend in GECs?
    No, we are not looking to do any high cost productions since they are currently not needed, as we have not yet hit the stagnation level and are still growing at a steady pace. We are also not looking for funding of any kind.

    How has the journey into the comedy space been for SAB?
    We are currently the only channel in India that is doing daily comedies. Most channels will run a weekly comedy at the most. Apart from this, our silent comedy, Gutur Gu, is only the second ever silent comedy to be really successful, after Mr. Bean, and we are now going to sell the show abroad via syndication. So, I‘d say the journey into this genre has been hugely satisfying, successful and fun for all of us.
    ‘We are on the lookout for non-fiction or reality shows. Our plan is to have a family-based concept for a reality show‘

    Have the lower budgets hampered on the production value?
    Well not really, as we have been able to manage our costs very well, even though the sets we create and use are very huge too. In Lapataganj we have created an entire village, while in Tarak Mehta Ka Ultah Chasmah the set is an entire colony. And to top it all in our newest show to be aired, Papad Pol Shahuddin Rathod Ki Rangeen Duniya, we have created an entire town as the set!

     

    Thus we have been able to improve at an operational level without compromising on our sets or production values, while maintaining a tight budget and getting the desired results.

    What are you the most proud of when it comes to SAB‘s current standing and position in the market?
    Currently 5 of our shows have a 1+ rating and this is really quite an achievement. I say this not only because it is quite difficult to have shows with even a rating of 1, but more so as we achieved this irrespective of the huge constraints we face as a channel. These include us not having an afternoon slot. Due to budgeting, our programming is restricted predominantly from Mondays-Thursday; the number of hours of programming and even our overall reach are all major hurdles we are currently faced with.

    What areas are you concentrating on in terms of investments why?
    We are going to invest a lot in distribution. Trying to move from the 38 to 55 per cent reach is the first gap we are hoping to plug. In just a few weeks of work, we have already managed to move from 38 to 41. We are also going to improve the placement of the channel.

     

    Besides, we want to expand our programming to 6 days, including Saturdays, without trying anything different in terms of genre.

    The current flavour of all channels has been reality shows and non-fiction. Is SAB going to venture into that space as well?
    As far as non-fiction or reality shows go, that is definitely on the cards too, and is a genre we would like to look at. We are, in fact, on the look out for a family-based concept for a reality show but are yet to come across something.

    SAB is one of the few channels that markets the entire channel and not just shows. What are the initiatives you are currently involved in?
    We are in the midst of many marketing initiatives right now, specifically in places where families will be together like theatres, bus shelters and other OOH areas.

    We even had a SAB mela in Ahemdabad which was a family fair attended by 27000 people and this was truly a one of its kind consumer connect campaign.

     

    The fair was another platform for family entertainment where people even got to meet and spend time with many of the artists from the shows they like. The fair also had a school connect program, where different schools and college teams participated in entertainment activities like group dance performances. We also had a lot of local artists and cultural flavours at the fair, and the overall response was so encouraging that we have decided to repeat this initiative in 15 more cities this year.

     

    Our other marketing plans as a channel include a radio promo, SAB ka Damadji wherein the “damadji” character created comes on air and talks to a group of ladies who ask him questions and he answers them via jokes and funny anecdotes.

     

    Also the virals we have been airing have done very well and have helped get in more viewers.

    Tell us a little about your new show, Papad Pol Shahuddin Rathod Ki Rangeen Duniya, that will be aired soon?
    We like taking renowned pieces of literature and using it for our shows. This is the basis of our new show too, which Shahuddin Rathod, an author with global following, has penned. His humour is warm, family based, closed knit and has a message.

    Papad Pol is like a street or machala where most of the people living are in the papd business. It is their lives and day-to-day interaction that forms the show.

    What‘s next for SAB viewers to look forward to?
    Next in the line for SAB is another silent comedy which will hopefully hit the air by July. The pilot has already been shot and approved. Apart from that, another show along the lines of Pink Panther, which is about a bumbling detective who solves crimes, will be specifically for weekend viewing.
  • ‘Regional language content has a huge scope in volume biz’ : UTV Television COO Santosh Nair

    ‘Regional language content has a huge scope in volume biz’ : UTV Television COO Santosh Nair

    UTV Television, one of the foremost television production studios in India, has seen many ups and down in the past. At one stage it was one of the premier TV production houses in the country. Then a clutch of upstarts – Balaji Telefilms, BAG Films, Big Synergy, Sphere Origin, Director‘s Kut, Shakuntalam, and Endemol – came and swept business from under its feet.

     

    But over the past couple of years, the division of UTV – promoted by Ronnie Screwvala – has been piecing together its story show by show. It began by venturing into the production of Marathi and southern Indian language shows. Then it focused on putting together a slate of Hindi non-fiction shows. The fact that the quantum of fiction shows on its genre sheet all but disappeared did not perturb the pioneer of TV in this country.

     

    The man helming the division is Santosh Nair, who was earlier in UTV‘s air time sales division. Nair spoke to Indiantelevision.com‘s Gaurav Laghate about the developments so far and the roadmap ahead.

     

    Excerpts:
     

     
    What are the changes you introduced in UTV‘s television content business after taking over as head a year back?
    I joined UTV in May 2005 but was taking care of the airtime sales division down south. Since last year, I have taken over the overall television business.

     

    We have really worked towards putting together the best creative team. We got back Indrajit Ray as chief creative officer. And we have put the right people at the right place.

     

    Now we are concentrating on developing show formats. Two major and much talked about formats that our team has developed are – Dance India Dance (season one) and Emotional Atyaachaar.

     

    Apart from this, I can say a lot of thought has gone into setting the roadmap for the future.

     
     
    Was there a need to change the team structure?
    We have different teams looking after fiction and non-fiction content. Both the verticals have their development teams also, which develop home grown ideas. Dance India Dance was part of that, and recently Emotional Atyaachaar was internally homegrown.

     

    All these separate teams are driven by different individuals.
     
     
    We are seeing a greater focus on non-fiction shows rather than fiction. Why?
    Yes, in the last couple of years, our strategy had been to focus on an area, which was very wide open, that is non-fiction. And now we are the only content company that produces shows in Hindi, Marathi, Tamil, Kannada, Malayalam and Telugu.

     
     
    But why was the focus greater on non-fiction shows?
    We wanted to fill the vacuum that was sitting over there in terms of a content delivery vehicle for non-fiction content. I think we have been fairly successful in doing that because in that span of two years, we did only non-fiction.

     

    We had non-fiction shows like Chhota Packet Bada Dhamaka, Dance India Dance first season (on Zee TV), Ek Haseena Ek Khiladi (Colors) and Cash Cab (Bindass).

     

    Apart from one long running saga Bhabhi (on Star Plus), we didn‘t have any other fiction to look at.

     
     
    But don‘t you think the fiction quotient, what generally is termed as the staple diet, has come down?
    These shows clearly established us as a non-fiction brand. But yes, having said so, people started looking at us as a pure non-fiction content provider. They forgot that we started as a company which delivered great fiction content.
     

     
     ‘People started looking at us as a pure non-fiction content provider. They forgot that we started as a company which delivered great fiction content‘

     
     
    So how are you positioning yourself now?
    We are focused on growth. 2009-10 has been to cement this entire platform in terms of being looked as both a fiction as well as a non-fiction provider.

     
     
    Talking about projects, how many new shows do you have in the pipeline ?
    The second quarter is when we will go all guns blazing. We have many shows in the pipeline; we are starting with a primetime show on ETV Marathi.

     

    We also have four fiction shows for Hindi GECs including one (Rakt Sambandh, a remake of a Telugu show) for Imagine TV. For the other three shows, I can‘t share the details as we are in the process of signing the LoI. But I can tell you that we are working with the top channels.

     

    There are also two non-fiction shows, out of which one is the mother of all reality shows. But again I cannot give details right now.

     
     
    Are these standalone initiatives or are they being done in partnership with others?
    We have a partnership with UTV Tele Talkies Ltd (UTTL), wherein we have on board Prashant Jadhav, the man behind Kasauti Zindagi… We are working on a fiction show for Imagine TV. It will be on air by end of this quarter.

     

    We have also been producing Sonu Sweety with Rajesh Berry Entertainment Ltd for Sab.

     
     
    And about your recent entry in the regional space…
    In Marathi yes, but for Southern languages our association with Sun has been since the time of the network‘s inception.

     
     
    But you were not producing shows for the Sun Network. You were primarily doing airtime sales…
    In the last couple of years, we have moved from being purely an airtime sales outfit to a more of a mix and match of own productions and marketing the same.

     
     
    How do you see the growth in regional markets like Marathi?
    In the last couple of years, regional markets have been systematically growing. And if you look at pan-India or Hindi GEC, you will see shows catering to the Marathi audience, like Pavitra Rishta.

     

    There is huge scope, but only if you do volume business as margins are very less. But yes, it is a growing market and we are looking at it in a serious manner. The Bengal market is also where we are looking to expand, but only after establishing ourself in the Marathi space.

     

     
    Coming to your content, you are producing Emotional Atyachaar, which is a bit edgy in nature. How is the response for the show? You are planning a second season also?
    Emotional Atyachaar has really cut the ice with audiences as far as Bindass is concerned. The audiences actually liked it. It has got the channel to a GRP level where it had never reached before. It had also beaten cult shows on competitive channels.

     

    And talking about Bindass, it is a youth channel, so it is okay to have edgy content. Anyway there is a very thin line. And yes, the second season of Emotional Atyachaar is coming in very soon.
     

     
    So you see a change in viewership trends?
    Viewership patterns are definitely changing. People are ready to experiment; they are looking at some kind of differentiation of content and that‘s where you see successes like Sach Ka Saamna and Emotional Atyachaar.

     

    For example, in the midst of a huge crowd of Hindi GECs, Colors came in. Everyone thought what is this? But they took their punt and it worked. See it is the small differentiator, which will drive the content. Otherwise it is going to be one mundane thing where daily sagas are coming in. So for the daily soaps also that we are working on, we are trying to do something different. The story might remain the same, but it is all about the treatment, how you take it forward. 

     
    You said DID was your format, but the IPR remains with Zee?

    With Hindi broadcasters, what happens is that the IPR remains with the channel. And historically it has been happening this way. But we took a bold stand when we decided to retain the IPR of Shararat.

     

    But that was a long time back, now all the IP is vested with the broadcaster. It is as simple as that. Emotional Atyaachaar‘s IPR is with Bindass, although it‘s a group company. 

     
    So if you don‘t have IPR, how are you intending to grow? If you see international production houses like Endemol and Frementle, they all retains their IPRs.
    We have already started working on some projects where we can retain IPR as it is going to be the future. We are working on certain finite series, where we will retain the IPR. We will produce it first, before even going to the channel and pitching it.

     
    And how do you intend to fund it?
    We will opt for internal funding. And we will de-risk it by producing four episodes and sampling it to broadcasters.

     

    In case we have a very solid finite – 13 or 22 – episodic series, then we can think of producing it in full. 

     
    Internationally, we see the syndication model in the television business. It allows producers to take on the risk of production and getting the reward by selling it to various outlets globally. Why can‘t we have such a model here?
    See, in India since we don‘t retain IPRs we cannot have the syndication model. And channels that run repeat content, are mostly low cost in operations.

     

    And even if some demand comes from international markets, the broadcaster, with the IPR, makes most of the money. 

     
    But with shows on Sun Network you can guard the IP.
    The benefit any company that works with Sun has, is that they can retain their IPR. The model there is completely different – you produce, you market, you pay slot fees. That‘s the benefit with Sun. So you have shows which are running there, which you can remake in other languages. We have a long standing relationship with Sun Network.

     

    And at the same time you can not produce content for competitors. That‘s the condition Sun has?

    Well, in terms of revenue and feasibility it makes sense to work with Sun as it is the biggest network down south. 

     

     
     So apart from the IPR issue, what other challenges are there for a production house?

    We have already seen one big challenge when recession happened. Channels were looking at cutting down expenses including production costs. They want the same product at a lesser cost. So that was the biggest challenge and learning that we got in the last so many years.

     

    We really had to sit back and think on how to strategise and minimise the cost. Not only in terms of our business but on a macro level also. 

  • ‘Acquisitions, JVs – We mean business’ : Fremantle Media regional CEO Europe & Asia Pacific Simon Spalding

    ‘Acquisitions, JVs – We mean business’ : Fremantle Media regional CEO Europe & Asia Pacific Simon Spalding

    Simon Spalding is a bit of a homebody. When the Fremantle Media regional CEO Europe & Asia Pacific is not travelling around on business he likes to spend time with his family in Amsterdam.

     

    The 49 year old Spalding has close to a quarter of a century‘s experience in a career spanning toy marketing (with Hasbro Europe), licensing (Dreamworkz) and television (Fremantle).

     

    10 of those years have been spent in building Fremantle into the global TV powerhouse it is today. He set up the UK operations, built them up and, then moved onto Sydney Australia where he forged a merger between Grundy and Crackerjack to create Fremantle Australia. Today it probably is the largest Australian TV producer.

     

    He then moved back to Europe to oversee Asia and Europe, leaving the Asian operations in the able hands of Patrick Schult.

     

    Spalding was in India to touch base with the Indian operations of Fremantle India, which are headed by Raj Baruah and also meet up with broadcast executives at the leading Indian networks. The TV executive – who counts West Wing as one of his favourite TV shows – caught up with Indiantelevision.com‘s Ashwin Pinto on Fremantle‘s Indian initiatives and the vision for the production house.

     

    Excerpts:
     

    Was 2009 a difficult year due to the economic downturn?

    It was a better year than we expected it to be. We made our budget but in order to do that we took some things out that we had been saving for a rainy day. Last year we had a couple of rainy days. There has been a bit more of a time lag for producers as the first half of 2009 was committed in the second half of 2008. So the first half of last year was good and it got tougher in the second half. We are still feeling the impact this year.

     
    How do you see this year progressing?

    We have taken a more conservative position regarding our budget. We have recognised that we will be a slightly smaller company this year. But overall the interesting thing is that our big shows are getting bigger. So while everybody was concerned that shows like Idol or Got Talent would also suffer in the recession, the fact is that we are getting a larger audience share. It is also encouraging that more people are watching television than ever before. If you have the right content and can produce it at the right price there is market out there for it.
     

    At this point which are your top five formats?

    Our big three entertainment formats are Idol, X-Factor and Got talent. Our game shows are strong like The Price Is Right which has been around for 54 years. It was the number one daytime show in France after being reintroduced after an eight-year gap. This show has been reintroduced in nine other markets. Fremantle is also a drama producer. Our serial dramas do well.

     
    What additions have been made to your catalogue recently and are you looking at more genres?

    We look at new genres. We brought 10 new formats to MipTV. Some were reversions of existing catalogue. Some we develop ourselves and some we do in partnership with others. We have a show Push The Button which has been done with Gallowgate which is owned by the guys who host Got Talent for us in the UK. We constantly look for new ideas. We recently picked up a new cooking format from Romania. It is a reversion of a classic show called Give Us A Clue.

     
     ‘Historically we have come in on the back of a successful show. Once that show fell away we did not invest in building infrastructure and a broader base to sustain our business (in India) . This time we have come in to build a base. We have a detailed business plan.‘

     
    What goals have been set?

    From a company point of view we are trying to do three things. We want to continue to build and develop our network. We have production companies in 22 countries. We want to strengthen those. If we have a strong entertainment business, for instance in Denmark, we focus on building a drama business. In Italy the situation is the reverse where our drama business is strong. There is already this piece going on as well as looking at new markets. Last year we opened offices in India and Brazil.

     

    The second part of what we are doing is to build and grow our creative pipeline. The content that we bring to the market is what is going to drive our business forward. So we have made significant investments in developing original content and also in partnerships with third parties.

     

    The third part of our strategy is building new capabilities. As the world changes, different platforms emerge and people want to use IP in different ways. We are looking at the skill sets and resources that we need available to help build that. This would encompass developing our live show business, gambling business. We want to grow in these areas too.
     

    How much business comes from Asia in terms of business generated? Which are your top three markets?

    Not enough business comes from Asia. I cannot give you a split though. India, China, Indonesia and Japan are our priority markets in Asia. These are the markets where we have production capabilities. In the other territories we have partnerships or licensing operations. We have nailed down

     

    what we want to do in the markets mentioned earlier. Where do we go next? Do we want to open more production capability?

    We have a strong licensing and co-production business in Vietnam. This is a market where at some point we should open a business. The Philippines is also important. We are trying to balance the benefit of having a local production capability against the cost of a startup. In the current economic circumstances it is a tough decision to make.

     
    Are you still an acquisition target? And how is the RTL ownership helping you?

    We are 100 per cent owned by the RTL Group. RTL is 91 per cent owned by Bertelsmann. They are happy with Fremantle as we have shown a compound annual growth of 9 per cent in revenue and 13 per cent in EBIDTA over the last six years. That makes for a happy shareholder. We can access investment funds. I just bought a company in the Netherlands as I want to strengthen our drama business there. We also made an acquisition in Italy which gives us more content. RTL Group CEO Gerhard Zeller has publicly said that Fremantle is not for sale.
     

    What is your vision for India?

    What I am looking for is a successful locally driven production company that takes full value from the Fremantle network and also contributes back to the network. The Indian group should take programmes and IP and bring them to India. Also over time they should develop things that travel broadly within the Fremantle network.

     
    Will Fremantle be open to considering paper formats from Indian creative professionals?

    We do look at them. Obviously they are much tougher to get to but you have to start somewhere. We would look at an original idea when we have identified a customer. A programme idea is only good if you have a customer to sell it to. Once we have found an idea that we can link effectively to a customer that is when we can offer support to bring that idea to a pilot or a series. Once we have tape then we can start pushing it around our network.

     

    An example is a format developed in France but we could not find the right customer for it there. We found a customer in Australia. On the basis of this successful launch we took it to other territories. The format is Take Me Out.

     

    You have made efforts to set up office in India earlier but retreated? What makes your current foray any different? What kinds of investments are you looking at pouring in here?

    Historically we have come in on the back of a successful show. Once that show fell away we did not invest in building infrastructure and a broader base to sustain our business. This time we have come in to build a base. We have a detailed business plan. We have a detailed idea of how much money we need to spend and when we expect ROI. The company has signed up for a longer term vision.

     

     
    Endemol has raced far ahead of you here. Zodiak is doing well with SOL. Disney has found customers for its products here. Are you coming in too late?

    The decision for us to withdraw from the market just before I took over the role was perhaps short-sighted. My ambition was to get back as the Indian market watches the kind of television that we produce. India has a range of free to air broadcasters who would want to buy our content. Why would we not want to be in India which is a growing market? The aim is to build a solid foundation and not try to run before we can walk. We don‘t just want to be in entertainment. We want to be in multiple genres.

     
    Is Fremantle also considering taking a stake in a local production house to complement your non fiction business?

    If there is a strategic fit we would look at it. There are other business models. It could be a JV or a partnership. It could be investing in creative people and giving them a place under the Fremantle umbrella. We don‘t have a one size fits all approach.

     
    ‘What I am looking for is a successful locally driven production company that takes full value from the Fremantle network and also contributes back to the network.‘
     

    For this year what is your priority?

    We have to deliver shows that we already have an order for. Indian Idol was our number one priority for Sony. We also focussed on getting our relationship with Colors correct for Got Talent. We want to establish our credibility as a serious content producer in India. You can talk about lots of things but until delivery happens it is only talk.

     
    Do you think the Indian broadcasting and production business is receptive to formats as it is in other developed markets such as the US, the UK, Australia, Malaysia? Are they willing to pay for formats or are they more prone to rip-offs?

    There are examples of formats being ripped of here. Once a successful format is launched there is a temptation on the part of other broadcasters to put something similar into the market. Indian Idol success is a testament to the strength of the IP. Viewers feel that it is worth sticking with. Broadcasters know that they can get away with ripping off stuff once in a while however, they also know that they need the best content and to get that they need to find a way to work with the people who own that content.

     
    American Idol has lost share in the US partly due to the fact that the format has gotten stale. How is Indian Idol faring?

    This year we have made a significantly better show. The talent is stronger and the production is better than it has been for a while. We had a strong launch. The numbers dipped. The test is if we can deliver what Sony expects and what viewers want.
     

    What new formats are being brought to India?

    We are meeting broadcasters. We are trying to fit our shows with the specialities of broadcasters. Every network wants differentiated content. Our entertainment shows have a lot of potential. We are sure that X Factor will be in the market soon. Historically our game shows have done well. So we will bring in some of those. Comedy will be more challenging as it may be tough to translate but I want to do this genre in India. We have some factual content that we feel the market is increasingly ready for. I want to do drama but we are not yet ready.

     
    Are you going to be going into the languages area? Tamil, Telugu? Endemol has done that well.

    This is an area that we have identified and it is a question of building the organisation so that when we make this approach we are capable of delivery. A number of game shows would work here. They are cost effective to do in multiple languages. For instance for Family Feud you could build one set and then bring in different hosts, different families, audiences.
     

    Has there been any learning from other Asian markets that you would look to apply here?

    We have to accept shorter pre-production times. We have figured out how to produce formats that have worked in Europe here though the cost structures are different and circumstances are different. We have learnt about cultural sensitivities. We make three versions of a dating show in Indonesia. We have figured out how to do it in a way that is culturally appropriate. You also figure out when something is culturally inappropriate as opposed to something that they do not want to do.

     
    Most of your shows are upscale. India is discovering rural, massy content. What plans does Fremantle have here?

    We have IP. What our Indian team has to do is sift through them and decide what could work depending on the environment. They have to identify gaps that can be filled locally. That is what we do in different countries. Americans do not just pick up everything that is developed. They pick up some stuff and develop other content that is appropriate. This is also true for the UK, Germany, and France.

     
    Also, there seems to be no differentiation among the Indian general entertainment channels. Nobody wants to take a leap. Do you see innovation happening?

    I am optimistic that it will happen. What we have seen globally is that companies which have innovated and done different stuff have step-changed their position in the market. For us, I accept that we will need to create formats here that travel. That will be a step-change for us.

     
    In the format business what trends are we seeing?

    We are seeing more uplifting themes being popular. So if it is a reality show then one about success works rather than celebrating disaster. In drama the themes are not as dark. There is more comedy coming through. There is more subject matter considered niche like cooking that is growing. They do well not just on lifestyle channels. They have gone mass market.
     

     

    Could you elaborate on the plan for the production services division and what is its USP vis-a-vis what is already available?

    The combination is that we have a huge catalogue of IP coupled with a group of people that can produce it as they are linked in to the Fremantle network. Our team understands how to produce shows here and the shows have worked well abroad. Talent, IP and international support are what we offer.

     

    The market consists of local companies which are developing their own IP or buying IP and produce it here. Fremantle is unique in terms of how it is networked. No other company comes close to our ability to move information around and support productions apart from the BBC. They are obviously very different. Endemol and we are the main global players.
     

     ‘What we have seen globally is that companies which have innovated and done different stuff have step-changed their position in the market. For us, I accept that we will need to create formats here that travel. ‘
     

     
    The Indian television general entertainment market has seen growth and also some consolidation. How do you see it progressing and what are the challenges that general entertainment broadcasters will face?

    The economic circumstances will continue to be a challenge. How the advertising market responds to the economic environment, the shift in advertisers‘ priorities between television and other media is a concern. Secondly, they have to remain distinctive and at the same time attract the broadest possible audience. A balance has to be struck. You need to have a personality while not alienating people whom you want to attract.

     

    Channels have to figure out how to get high quality content whether it is sports rights, news etc. They have to maintain the right relationships to deliver desired content.

     
    You see foreign players actively looking at India, the latest being CBS. How will this change the market dynamics from your point of view?

    Competition is healthy. But is enough investment being made to train people who you will need to run businesses? This is a concern. If this is not looked after then staff will be poached and there will be unpleasant salary inflation. If international companies bring in expats then it would be a step backwards.

     
    Could you talk about the strategy that Fremantle follows in exploiting brands beyond the television screen?

    We look at it in terms of what we term the wheel of value. The hub of the wheel is content. We look at spokes that can be used to exploit that property. Is there a format, a tape sale, home entertainment piece, an Internet experience, a mobile experience? A brand like Idol fills in most of the spokes. The Price is Right also lends itself to various activities. However, a factual entertainment show may not fill many spokes. You can sell this show in many territories but you do not get the mugs and T-shirts part of the business or the live show.

     

    For The Price is Right we sell the American version in some territories. We also have a DVD. We have multiple online versions where you can play for prizes, fun, and money. We have lottery scratch card elements. We have merchandise like a board game, mugs and T-shirts. We have a gambling version through slot machines in casinos. We have a live version of the show in America. We have sold it to a casino in Belgium. We have also developed a mobile application which has had 500,000 downloads on the iphone. The only thing that we have not done is a film.

     
    Are you looking at creating content for the mobile in India with 3G coming in?

    We have done a number of shows specifically for the mobile or net. The challenge is to create a business model. We have experimented. We have an online comedy service Atomic Wedgie in the US. It has translated into a TV show. We have done other stuff like cut down versions of Baywatch on mobile.

     

    We are not making much money but we are learning. We are investing rather than losing money. We did a show for MySpace where we went to find interesting people on this social network.

     
    How is the iCount viewer research panel helping Fremantle understand viewers better?

    We rolled this out in Germany. We are about to launch it in the US. It allows us to get very fast feedback from engaged viewers. It does not substitute other forms of research that we do. It allows getting a fast read on what would engage viewers. We can do more pre-testing. So for instance, if you want to look at a storyline in Neighbours, you can talk to those engaged viewers and get a read on whether they think that it is something they feel that we should be doing or not.

     

    We can test out casting, validity of characters and get a read on other things going on in the market. We get feedback on where people are watching stuff, what they are listening to and how they spend time. It gives us a more complete viewer of the consumer at a reasonable cost.

     
    Are you planning to introduce this for India?

    We will roll it out on a territory by territory basis. Australia is probably going to be the first place in the Asia Pacific region where we will roll this out. In India and Indonesia do we have enough shows where the iCount panel could influence? If you only get feedback on stuff already done it is interesting, but may not be useful beyond a point. I probably will not roll this service in China.
     

     

    Has Fremantle cracked the social media puzzle and taken advantage of the buzz going on there?

    I will go back to the point about developing new capabilities. There are processes and techniques going on in that world which need skill sets that are different. What we have to figure out is what we can contribute from our existing skill set to the party. We are playing around the edges of social networking, social gaming. We realise that we as a company need to take more positive steps in this direction. For us gaming is a separate skill set.

     

    It is a big move for a television production company to say that it also wants to get into gaming. Similarly gaming companies like EA took a while before deciding to enter the entertainment business. Gradual steps were made and now there is more cross over. While the Tomb Raider and Prince of Persia games were made into movies, it took quite a while before that crossover happened.

     
    Four years down the line will Fremantle be among the top production companies in India or would it have wound up?

    India is a territory that we will never be able to not be in. I want us to be a production company that people trust to bring them high quality content. We need to have a range of customers providing a range of genres across a range of price points. We have to be a full service production business.

     

    The more interesting question is whether we will just be a production company? How will we characterise ourselves three years from now? We already talk about being an entertainment business and not a production business. How we evolve will impact the way in which we develop here.

  • ‘Our biggest challenge is raising the low yields in the Hindi movie channel genre’ : Star Gold GM Sameer Rao

    ‘Our biggest challenge is raising the low yields in the Hindi movie channel genre’ : Star Gold GM Sameer Rao

    Star Gold general manager Sameer Rao is known to be a numbers man. A chartered account and an MBA in finance, Rao has a 19-year career graph that spans stints in UBS and Arthur Andersen.

     

    His baptism in media took place at Star in cable TV distribution, followed by the internet, the commercial department and then finally to his current posting. He was given additional charge of Star Utsav in end 2009.

     

    Indiantelevision.com’s Ashish Mitra spoke to Rao about the changes he has brought at Star Gold and the prospects for the channels he heads.

     

    Excerpts:
     

    How large is the Hindi movie channel space? What is the lay of the land?

    Our estimates are that all the movie channels put together make it a Rs 5,200 million ad revenue market. No doubt, Zee Cinema is the leader followed by MAX, and we are at the No 3 slot. For about six to eight weeks every year, because of the IPL and cricket, MAX steals ahead and then it goes back to the previous ranking.

     

    Raising the low yields in this channel genre is the biggest challenge. The inventory is keeping on growing with new channels launching: UTV Movies, for instance, entered the fray with two channels. GRPs of movie channels used to be much higher a year ago than is the casenow. There are times the ratings race becomes a big issue with us when competing with the likes of GECs such as Sony, Sab and Imagine as they are in the same GRP range as us. But the realisations by these channels for commercial time are higher.

    Can you gives us your analysis of the Hindi movie channel genre?

    The movies genre, if you aggregate consumption across movies channels, movies on Hindi GECs and movies on cable channels, is as big as the Hindi GEC slice. However, perception wise, it is regarded as much smaller, possibly because it is acquired content as opposed to original programming.

     

    On the supply side, satellite buyers have emerged as key players in the Hindi film industry and are critical to the viability of any Hindi film project. With some changes both on the buying and selling side, it is possible that movie channels will be able to offer much more value to all stakeholders – film producers, advertisers, viewers – while remaining a healthy and profitable business for the broadcast networks.

    You were looking after commercial for Star Plus when you were called to take charge of Star Gold and Star Utsav. What was your analysis of the two channels and your health report for them?

    I was responsible for programming commercial for the Hindi language channels at Star between March 2007 and November 2009. I took over as Star Gold general manager in March 2008 and Star Utsav general manager in late 2009. Star Gold is a healthy and growing business and Star Utsav is stable but a lot more could potentially be achieved.

    What changes did you initiate at Star Gold to fast pace its growth amongst its competing players ?

    My fundamental approach towards programming on Star Gold was to build slots that delivered on a defined content promise to a movie consumer. The slots were developed based on research inputs on content themes that audiences wanted to see on a movie channel.

     

    Thus, we built permanent action, comedy and kids slots apart from the Hollywood dubbed slot, which we had launched several years ago.

     

    Apart from this, we also incorporated slots for thematic movie festivals through the year, which would run from one to six weeks. For example, one of these, Sabsey Favourite Kaun, culminates in a big scale televised award show, India’s only audience polling driven movie awards.

     

    Hence, once we had the slots ready, we acquired movies designed to develop and grow the slots. All these initiatives helped us narrow the gap between us and the genre leaders.

    Star Gold was not being marketed aggressively. How have you changed this in terms of above the line and below the line activity?

    Marketing for the channel is in line with the programming strategy of building up slots and festivals. A lot of it happens outside Mumbai as our biggest consuming markets are Uttar Pradesh, Gujarat, Delhi and Maharashtra.
    ‘We are just four GRPs behind Zee Cinema and 16 behind MAX. If we do the right things we can overtake the leader.‘

    Your list of acquisitions and syndications.

    Last year, we acquired films aggressively. We got the Salman Khan-starrer Wanted, the Amitabh Bachchan-starrers Aladin and Paa, the Akshay Kumar-starrers De Dana Dan and Housefull and the Ajay Devgn-starrer Atithi Tum Kab Jaoge. Besides Wanted, all other acquisitions were on an exclusive basis. Some runs of Wanted have been reserved for Sahara because they co-produced the film. We also have the non-exclusive rights of the latest RGV film Rann along with Life Partner and Luck.

     

    As far as syndication goes, we continue to syndicate with Zoom and UTV Movies. But this exercise entirely depends on the type of films the other channel wants to have.

    What are your plans for Star Gold?

    We’d like to lead the genre by the end of this calendar year. The network is building the catalogue through a mix of judicious new and library acquisitions and we continue to refine our slot-based programming and marketing strategy. I believe we need to acquire close to 20-25 more movies over a period of time. We are just four GRPs behind Zee Cinema and 16 behind MAX. If we do the right things we can overtake the leader. Our challenge is to have the right mix of old films, new films and blockbusters. We can’t buy the most expensive ones only; otherwise the low yields could erode our margins.

    Which are the major category advertisers for the channel?

    FMCG continues to be the biggest category. We are an important platform for male brands because of our deliveries in that demographic. We get the bulk of our advertising resources from the package of festivals. Going forward, several new acquisitions that we have gone into will boost the advertising pattern of our channel.

    Please highlight the milestones of Star Gold over the decade.

    Starting off in 2000 as a classic movie channel, we showed black and white films. We then switched on to telecasting coloured films from the post 70s. Rapidly, we turned into a channel with a modern look in terms of popular and critically-acclaimed cinema.

    Then in 2002, we launched the popular Sabsey Favourite Kaun (SFK) that first started as an award show. Then in December 2006, SFK went international. The show’s popularity can be measured well as last year, we received a whopping 17 million votes through SMS and internet in addition to the physical votes we received from people to select their favourite stars. This exercise lasted for over a period of two months.

     

    As for showing Hollywood dubbed content, we have excelled in showing the latest Hollywood films and rank above all other channels.

     

    Going forward, we hope to see Star Gold as a channel that boasts of new Hindi films.

    What has been the change in the channel perception over the years?

    The first major change in our channel was when we changed from a classic movie channel to a channel that specifies in several genres as far as films are concerned. Based on this, currently, we have a higher proportion of viewers. Our channel is driven around comedy films and of course Hollywood films. We want to build on the perception.

    You took charge of Star Utsav in 2009. What was your assement of the channel then and what changes have you brought in?

    Basically, Star Utsav is a channel that caters to repeat content. After I took over, I found that there were more repeats of shows of two distinct genres – mytholology and kids programmes. This was of course in addition to shows from the Star network.

     

    After I joined the channel, rationalising the schedule was my biggest priority.

     

    And now, we are looking at various opportunities keeping the taste and preference of the semi urban and rural markets in mind and devising a new strategy for Star Utsav. This will be implemented in the coming months.

    What were the ratings of Star Utsav when you took over and what are they now?

    The ratings are the same now comapred to when I hadn’t taken charge. It remains stable.

    What about advertisers? Have they been attracted to the channel?

    There is a potential beyond what the channel is currently generating in terms of advertiser participation and we are looking actively to tap such an opportunity.
  • ‘IPL franchise ownership seems to be driven by celebrity rather than commercial reality’ : Intangible Businesses valuation director Richard Yoxon

    ‘IPL franchise ownership seems to be driven by celebrity rather than commercial reality’ : Intangible Businesses valuation director Richard Yoxon

    The Indian Premier League (IPL) defied financial gravity at a time when the world was struggling to fight the menace of recession. Even as capital became scarce, the world’s hottest cricket property managed to renegotiate a nine-year broadcast deal in 2009 for a whopping $1.6 billion. The earlier agreement, signed a year ago, had valued the TV rights for $1.03 billion over 10 years.

     

    The temporary refuge in South Africa was a welcome aberration, establishing the IPL as a global property. In 2010, the IPL became bigger and better as it attracted larger audiences, costlier sponsorship deals and fatter franchise bids, growing the cricket economy.

     

    Then came the Lalit Modi saga and charges of match-fixing, rigging of bids, financial irregularities and betting. The architect of the IPL is now suspended and a clean-up exercise has begun.

     

    A parallel has often been drawn between the IPL and the English Premiere League (EPL) that houses some of the world’s iconic soccer clubs including Manchester United.

     

    The IPL, however, has a big mountain to climb. Its TV rights, the main revenue supply for the entire structure including the teams, went for much less. Last year the EPL‘s TV rights bundles were acquired for $2.6 billion for 3 years. And it‘s not just a big difference in value. More importantly, the EPL‘s TV rights will be renegotiated twice before the IPL‘s current deal expires.

     

    But the IPL is just three years old and has seen a stupendous growth. It can learn important lessons from the EPL as it scales up, including doing shorter term TV deals in future as the property gets well established.

     

    The IPL team owners should also be cautious in not repeating the mistakes committed by their EPL counterparts. Some of the EPL club owners have funded their acquisitions through huge debt and have gone on to pay unrealistic amounts to purchase players. In fact, the EPL clubs are popularly known as the ‘rich boys‘ toys‘ that appeal to the owner‘s ego and vanity.

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, Intangible Businesses valuation director Richard Yoxon talks about the challenges that sports properties face as they grow up to be run like big commercial businesses.

     

    Excerpts:
     
     
    Will it be right to compare the IPL as a potential sports property that can grow to the scale of the EPL in future?

    I think the IPL has more in common with the American franchise sports such as NBA and NFL than with the EPL. The success of English football was built on interest from local communities and commercialisation came a lot later. American sports and the IPL, on the other hand, were created and driven by commercial objectives.

     

    Football is the major sport in most countries. NBA, NFL and baseball are only major sports in the US while India is the only major economy where cricket is the number one sport.
     

     
    Can the IPL leapfrog?

    On the basis of global appeal, the IPL will never come close to the EPL. Commercially it‘s possible due to the size and growth of the Indian economy, but I think it‘s unlikely except in the very long-term as in a global context cricket is small beer compared to football.

     

    In a renegotiated deal in 2009, the IPL‘s TV rights went for $1.6 billion for 9 years. In contrast, last year the EPL‘s TV rights bundles were acquired for ?1.7 billion ($2.6 billion) for 3 years. A very big difference. More importantly, the EPL‘s TV rights will be renegotiated twice before the IPL‘s current deal expires.

     

    England has 3 professional leagues below the EPL and over 90 professional clubs!

     

    The Indian economy (2009 GDP $1,235 billion) will need to be multiple times bigger than the UK economy (2009 GDP $2,184 billion) for the IPL to leapfrog the EPL.
     
     

    Several EPL clubs are sunk in debt while the IPL has run into controversies very early in life. Do you see sports businesses being in trouble across the world?

     Not many football clubs currently or historically make a profit. It is often suggested that the clubs are ‘rich boys‘ toys‘ that appeal to the owner‘s ego and vanity. Football clubs are trophy assets rather than profit centres. This is a key similarity as I think IPL franchise ownership seems to be driven by celebrity rather than commercial reality.
     

     
    Are the allegations of match-fixing, rigging of bids and betting going to impact the IPL as a brand?

    The events are certainly not helpful but the impact will be minimal in the long-term if the BCCI acts promptly and transparently to address the problems. The Indian public loves Twenty20 cricket and the competition‘s format. This love affair with the game is not going to change as long as the game is cleaned up commercially. What‘s the alternative? I can‘t imagine the Indian public switching to football, hockey, kabaddi or even test cricket with equal fervour and enthusiasm.

     
     
    What is the IPL worth in value after 3 years of existence and how does it compare with the EPL?

    I think there is nothing wrong with the progress made to date by the IPL. I think the BCCI / IPL has done amazingly well in a short space of time.

     

    But we haven‘t valued either brand. Brand Finance valued the IPL brand at $4.13 billion, but I struggle to understand how the brand of a business whose main source of income is a 9-year TV deal for $1.63 billion can be worth so much.
     

    ‘IPL franchises certainly do need to scale up to justify the high franchise fees. The amount they need to scale up in the time available appears unrealistic‘

     

    But you have valued the IPL franchises and they are much below that of Brand Finance‘s estimates. Why?

    Brand Finance is, perhaps, more optimistic than us. Regarding the IPL, they have more ambitious growth rate projections and are less conservative in discounting.

     

    But if you look at our valuations, the top four teams are almost having similar values (Royal Challengers Bangalore at $37.7 million to Chennai Super Kings‘ $36.1 million). There can‘t be any particular team breaking too far ahead at this stage because there is no big difference among them. The difference is mainly due to the size and level of interest in the IPL franchise‘s catchment areas. Rajasthan Royals ($27.5 million) is distinctly disadvantaged compared to Royal Challengers Bangalore and Mumbai Indians (5th at $32.7 million).
     

     
    Do you see revenue streams a big problem with the IPL teams?

    They certainly do need to scale up to justify the high franchise fees. The amount they need to scale up in the time available appears unrealistic.

     

    As far as licensing and merchandising revenues go, the IPL franchises can tap their growing fan base. There will be a limitation, though, if you compare it with EPL clubs like the Manchester United where the shirts are even bought by the Japanese or the Chinese. The IPL team merchandise will find it difficult to cross the global boundaries and communities outside the Indian diaspora.
     

     
    What are the lessons the IPL needs to learn from the EPL?

    The IPL needs to negotiate shorter TV deals. I suspect that the IPL‘s 10-year deal (renegotiated deal after a year is for 9 years) was driven by necessity as the concept was unproven at the time of the negotiation. A longer deal was probably needed to get to potential franchise owners on-board by providing the assurance of guaranteed revenues and media coverage over a sufficient period to justify the initial franchise setup costs.

     

    The IPL is a closed shop. There‘s no promotion or relegation. Teams should earn the right to play in the IPL rather than buy their way in. The British public loves an underdog (hence I follow Rajasthan Royals in the IPL) and it is great for the sport when a small team gains promotion to the EPL on a shoestring budget and even beats one of the big names (Burnley won promotion to the EPL last year and beat Manchester United in their first home game).

     

    It is equally interesting when the big teams face the threat of relegation despite significant investment in players (Newcastle relegated last year). Relegation also maintains interest for longer; once teams are out of contention to win the IPL there‘s little to play for. It would be good to see the IPL develop feeder leagues to give smaller cities the opportunity to develop teams and aspire getting a sniff of the big time.
     

     
    When did the EPL commercialise?

    Football is a fabric of British society; it has been developed over 120 years. But the first big step towards commercialisation was when TV deals were renegotiated in 1992. Twenty top clubs separately negotiated for TV rights, which became the main driver for their increase in revenues. Previously, the TV rights were negotiated collectively for all the 90 clubs.

     

    Merchandising is a huge income for certain big clubs like the Manchester United. But for most of the clubs, the main income is from TV. Portsmouth, for instance, reported a total income of $60 million last season, out of which $40 million came from TV.

     
     
    Why has the enterprise value of the EPL come down recently?

    The same reason as any other market or business. Recession! Leisure and entertainment expenditure is cyclical. It‘s to be expected that consumers spend less on leisure and entertainment during recessionary times. In the medium and long-term, leisure and entertainment is a fast growing but highly competitive market.

     
     
    Why have the EPL clubs amassed huge debt?

    Two reasons. First, leveraged buyouts. Manchester United and Liverpool were bought by Americans using debt finance which was pushed onto the club‘s balance sheets. The clubs did not create these debts.

     

    The second reason is bad management – spending more than the club can afford in the hope that any resulting success will pay for the gamble.
     

     

    Is there a current crisis?

    What crises? The EPL is as popular as ever. Football clubs going bust is nothing new. The fans suffer in the short-term but the club survives.

     

    There are no major threats to the EPL. It‘s been going on since 1888 (rebranded in 1992); it‘s survived two world wars and hooliganism in the late 1970‘s / 1980‘s. The current exchange rate and increased income tax rates make playing in England less appealing financially for the world‘s top footballers. This has yet to have an effect but this summer I expect we‘ll see less big name players than usual moving the EPL in favour of Spanish, Italian and German leagues. This will not affect popularity in the UK but may have an impact on global interest in the medium term.
     
     

    Have foreign owners contributed to the financial mess?

    International investors have actually made the EPL economy much bigger. The problem has been with the buyouts being funded by debt and the purchase of players at a very high price. 
     

    Does the EPL need a restructuring?

    No. Some clubs need probably restructuring but the EPL is a profitable business. The supporters of several clubs would like new owners (Manchester United, Liverpool). Overtime, I suspect and hope that we will see more clubs owned by supporter‘s trusts, similar to the Barcelona model.
  • ‘One individual is not capable of running IPL’s complex business ecosystem’ : Brand Finance India managing director Unni Krishnan

    ‘One individual is not capable of running IPL’s complex business ecosystem’ : Brand Finance India managing director Unni Krishnan

     

    The Indian Premier League (IPL) is caught in the midst of a storm with dark clouds hovering over team ownership issues, sources of funding, corruption and match-fixing charges.

     

    Lalit Modi, the architect of the IPL, is being accused of holding hidden stakes in some of the franchises. Income-Tax sleuths have broadened their probe into the financial details of the IPL by conducting nationwide raids cut across Multi Screen Media (MSM), World Sport Group and the franchise owners.

     

    So how will these chain of events affect the brand value of the IPL pegged at $4.13 billion?

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, Brand Finance India managing director Unni Krishnan says the risks for brand value erosion are significant if the IPL does not quickly put in place proper management systems and processes.

     

    Excerpts:
     

     
    With controversy swirling around the IPL, is there a need now to downgrade the brand?

    It is too early to take a call on this. The probe has started and we will have to wait for the government to come out with a final report on the investigations before we can comment on whether the IPL brand is fractured.

     

    But in our February report, we had cautioned that the IPL branded ecosystem is rapidly approaching an inflexion point. We had predicted this to happen in the next 6-10 months. This has come sooner than that.

     

    Surely, there are definite weaknesses regarding brand value governance and transparency, management systems and processes. But have we got a revised value of the IPL brand? Not yet.
     
     

    Does this mean that there is no brand erosion at this stage?

    The risks for brand value erosion are significant if things are not managed swiftly and the stakeholder relationships start weakening. But the truth is that the IPL is a very valuable brand created in a very short period of time. The wealth that can be created by the brand is going to be substantially significant for many stakeholders. A conducive ecosystem has to be created to move the brand to the next level.

     
     
    But will it be safe to say that the IPL brand has got tainted?

    The fault is not with the IPL brand. Some people are commenting that the property be nationalised. That is not how you run a global commercial property like the IPL. Iconic brands such as the IPL are national assets and a source of wealth creation. The question is whether we have the capability and determination to put systems and processes in place to manage one of the best brands we have produced. If we fail to do so, and all the allegations also turn out to be true, the brand will take a big knock.

     
     
    Enough dirt is thrown on Lalit Modi, the architect of the IPL. Now it looks like the man who created and built the IPL property would be thrown out. Will that not damage the IPL brand?

    Let us not confuse the individual called Modi with the business and the brand. One individual is not capable of running such a complex business ecosystem like the IPL. The need is to fix the weaknesses.
     

     
    Are you suggesting a proper balance of power system?

    As the architect of IPL, Modi has done a great job. But for such a large-scale property, we need 10-12 key members. We are not sure if the IPL governing council acts as a rubber stamp. We need to go through these questions urgently if are to create a sustainable brand property.

     

    The IPL brand is a set of complex relationships with fans, franchises, sponsors, business houses and players. This can create huge value in future if properly managed – not by one individual but by a system.

      
    ‘The IPL is a global commercial property produced from India. The unfortunate part is that if we don‘t do a clean-up action, we would be destroying it not due to any competition but because of our own action‘

     
     
    A fundamental problem being raised is that the revenues do not match the sudden flood of investments that have gone into the IPL. Are you worried about a possible nexus between the IPL organisers, the politicians, the big corporates and the Bollywood celebrities?

    There is an entry price to every business. Substantial investments are required and the revenue potential is huge. If there are misconducts like match-fixing and betting, then obviously the guy watching the game will turn off. So will sponsors. Years ago, when the first match-fixing charges were made, there was a brief period of lull. But that does not mean that cricket has died in India. The key question is governance and transparency.

     
     
    Is there inherent strength at the IPL franchise level?

    There has to be transparency at the ownership level too. Media reports are suggesting murkier deals. We don‘t know at this stage what is the truth. But sporting properties have to be run like proper businesses. Look at how the English Premiere League (EPL) has hurt itself. The club owners chased iconic players and made unrealistic purchases through a huge load of debt. Sports businesses can be lucrative but proper regulations have to be in place.
     

     Is the IPL an overheated economy?

    Is there value to be created? Yes. There are strong revenue and marketing opportunities.

     

    Most of the clubs, however, have not yet put the systems and processes in place to manage these opportunities. Take the licensing and merchandising (L&M) business which is pegged globally at $108 billion. This is not a Mickey Mouse number. Manchester United has 25-30 per cent of its revenues coming from L&M. But in India, this revenue stream is not visible in many of the clubs. We have to build the requisite bandwidth to monetise these opportunities.

     
    Is this a struggle between the old and the new India?

    As a country, we need to move away from intrigues and corrupt systems to a phase where we develop international properties. We can‘t run these properties with the same baggage as we move from a developing to a developed country. The tussle between the old and the new India will lead to pain and tribulations. But the fact is that we have created a positive property in the IPL which can provide sustainability in the long run for various stakeholders.

     

    People are seeing a new India through the IPL. This goes much more than cricketing business; it is about brand India. On a much broader level, IPL has demonstrated the coming of age of India‘s commercial prowess on a global stage.

     
    Does this remain as a dream at this stage?

    The developed world is looking at the IPL as a global property produced from India. The IPL has changed the very perception of India in the global stage. The unfortunate part is that if we don‘t do a clean-up action, we would be destroying IPL not due to any competition but because of our own action. The moment of truth has arrived for us. We have to face it with independence and courage. Can we live up to the expectations that we have created? It will be a sad essay if we don‘t deliver.

     
    How do we move the IPL up from one-third its value ($4.13 billion) to a level that it can sit along with the EPL ($12 billion)?

     

    That is only an indicative figure we have given to compare a property developed in one part of the world with another that has achieved maturity status. The IPL has hardly scratched the surface. It has a long way to go and a considerable value to realise before it lives up to its full revenue and brand potential.

     
    Brand Finance has more than doubled the brand value of the IPL from its first evaluation. What are the reasons for this?

    We are seeing a remarkable increase in revenues from broadcasting (as deal was renegotiated) and sponsorship. We have also considered the IPL‘s capability to draw in fans and viewership.

     
    Why have you upgraded Chennai Super Kings (CSK) to the top as the most valued IPL franchise (Rs 2.24 billion, up 35.5%)?

    There are 3-4 breakaway clubs. We have looked at teams who have managed cricket as a product and blended this with marketing and commercial excellence. The two performances have to be done simultaneously.

     

    CSK is beginning to put the various pieces together, synergising between their enterprise (India Cements) and their IPL business. We are also seeing Mumbai Indians show a remarkable revival this year, both in performance on the field and in their commercial activities.

     
     Why has Kolkata Knight Riders (KKR) slipped in your latest brand value estimate (Rs 2.13 billion, up 20.6%)?

    KKR topped in our first round as it has an iconic brand like Shah Rukh Khan. This gives it an undue advantage. But they are not able to exploit this to the maximum. Their performance as a cricket team has also been bad. If this trend continues over the next few seasons, then it will seriously erode the brand value of KKR.