ITV

Category: Executive Dossier

  • We expect ICL to break even in two and a half years

     

     
    ‘We expect ICL to break even in two and a half years‘

    When Zee launched the Indian Cricket League in the face of a take-no-prisoners campaign of opposition from the Board of Control for Cricket in India last year, there was scepticism galore on whether the Subhash Chandra-backed league would bat it out. Particularly after the the BCCI announced plans for its own league shortly thereafter.

    ICL, however, successfully staged two events despite all the hurdles thrown in its way. The Indian Premier League kicking off on 18 April notwithstanding, Zee Sports business head Himanshu Mody is confident that his cricket endeavour will hold its own.

    Indiantelevision.com‘s Ashwin Pinto caught up with Mody to ascertain his views on the progress made and future plans.

    Excerpts:
     

    Firstly, congratulations on having been able to deliver the second edition of the ICL despite the best efforts of the BCCI to skewer you. How has the experience been different from the first edition?
    It was much better. The first one was with six teams in one venue. There were 20 games. For the next event we added two more teams and had three venues. Lahore came from across the border. The event was held on a larger scale.
     

    What were the learnings from the event that you will take, going forward?
    We learn every day. Despite the pressure and resistance that we face, I think that we are set on a path to success. We have good players and have built on the ground infrastructure. We have 250 members, 80 of whom are Indian players. The rest are foreigners – coaches, players support staff, etc.
     

    How is the event being expanded upon this year?
    From April to September it is summer and then the monsoon season. There is not we can do in this period. We will hold an event later this year. We could include ODIs as well. We had a non televised ODI tournament in January which was played in Chennai and Hyderabad. What we come out with will depend on the commercial viability.
     

    How succesful have you been thus far in infrastructure and grassroot talent development?
    The Indian players come from various small towns and cities like Jammu, Srinagar, Assam, Indore and Bhopal. The Indian players come from 58 cities. We have a diverse mix in this sense. We also have talent scouts in each Zone where they have gone out to find emerging talent. We will now be setting up a central Academy for our boys.
     

    A notable feature this time round was that there was an increase in spectators in the stadia. Has some sort of a spectator/viewer connect with the state teams happened?
    This is starting to happen. The event is a family viewing experience. People are supporting the local team. In the final, Hyderabad Heroes had a lot of local support. At the same time support depends on performance as well, which is what has hampered Mumbai.
     

    Simulcasting the event on Ten Sports and Zee Sports has ramped up viewership quite significantly. What have been the average combined ratings? Have they been up to expectations or have they exceeded your brand partners‘ expectations?
    The ratings have exceeded our expectations. We managed an average of 1.5. Ratings peaked at 3.5, which is more than India Test cricket and some ODI ratings.
     

    Was it a challenge to get sponsors on board given the BCCI stance?
    The establishment tried everything they could to prevent us from getting a start. They tried to resist sponsors from coming on. Also, to be fair, for the first event sponsors were reluctant as they did not know what to expect. The first event was a solid start.

    The second event has been a big hit and on the back of that we launched a tri series between an Indian XI and a World XI. We sold most of our inventory for this. The likes of Pepsi, HUL and Vodafone have come on board.
     

    And what of the other cricket boards? Do you see a softening of their stances vis-a-vis the ICL and what could be the catalyst for it?
    The other cricket boards have to realise that more than ICL, it is the IPL that presents the biggest threat to them. I think that they are starting to realise this. We do not ask any existing players to break their contract. At the moment the IPL presents that dilemma to current players as to whether they should play for their country or IPL club. We have taken players who are on the fringe or who do not have a central contract with their respective boards.

    The international governing body needs to take a call on what is more important. In soccer for instance, club soccer contributes more revenue as opposed to countries playing against each other. Cricket must decide if it wants to go down this route. If that happens, then country versus country matches will have to come down. If, however, it decides that the country format is more important, then the IPL could be limited in terms of matches played.
     

    How has ICL fared businesswise? Could you offer any idea of the kind of investments that have been pumped in?
    I cannot talk about numbers. However the business is robust. Earlier when we started this last year, we had given ourselves a breakeven period of three years. Now we expect that to happen in two and a half years.
     
    ‘The other cricket boards have to realise that more than ICL, it is the IPL that presents the biggest threat to them‘
     

    Where have the revenues come from and how does it compare with the inaugural edition?
    We have several revenue sources. We have ground sponsorship, associate sponsorship, ticket sales sponsor, advertising on television, broadband rights.

    ICL was aired in several countries including UK, US, Pakistan, the Middle East, Africa, Southeast Asia, Australia and New Zealand. We did deals with international broadcasters for ICL including Showtime in the Middle East, Starhub in Singapore and Astro in
    Malaysia.
     

    The ICL is unique in that everything – whether it be telecast rights, teams, stadia – is owned by the promoters. Therefore, by extension, it‘s Essel that has to spend on development, promotion and marketing of every aspect of the event. With IPL as a rival, in effect you‘re confronting the power of 10 – not just a powerful cricket board but eight strong franchises as well as an established television network for share of mind. Doesn‘t that become a huge challenge?
    We took satisfaction from the fact that the IPL format has duplicated ICL. The economics of the whole thing differs from product to product. We knew what the marketing plan would be and what would be enough to cover the country. We are on track. If we incur all costs and do it ourselves, then all revenues belong to us. We do not have to share them with anybody on a
    80:20 or 60:40 basis.

    If there is no India cricket in a certain period, then the ICL becomes a strong proposition. If you can have many news channels, I don‘t see why two leagues cannot co-exist. We can have as many events as we like with all our players.

     

    Actor Mithun Chakraborty has picked up a stake in the Kolkata ICL team. What are the future opportunities for stakes in teams?
    We are talking with a few corporates. We chose not to sell teams initially as we wanted to show people the value that we bring to the table and what our delivery is. Having done this, we can now command a premium for our teams for strategic partners. It is not just a question of money. We are looking for partners who share our vision and who can bring synergies to the table that will help the ICL grow.

    We will, therefore, be selective about whom we choose to partner. We need to know the drive they have and what their objective to invest is.
     
    With the BCCI‘s league being launched next week, what impact will this have on ICL in terms of retaining both local and international talent and viewer interest? In the present context, the ICL has a shelf life as a low-cost, lower value alternative to the IPL. But if these eight franchisees are going to expand in a big way, what will be left over for the ICL to pick up might just be the crumbs. Are some of these fears being expressed?
    I don‘t think that it is a fair comment. There is enough local and international talent to go around. We have contracts with our players and I know that the satisfaction level they have is high. We are a closely-knit family. I don‘t see substantial movements
    happening.

    A mature sports market allows for trading, though. The players have contracts with us and if somebody wants them, then they will have to pay us accordingly. That is how sports clubs operate globally. A player cannot simply break his contract. Our stated objective has been to have talent at the grassroots level. So we did not go out and try to get the likes of Sachin, Dravid.

    What we do is in line with what Zee does if you look at shows like Sa Re Ga Ma or India‘s Best (Cinestar Ki Khoj). We short-listed 15 Indian players who we felt were the best. They played in the tri series. The fight they showed was commendable against a global bowling attack.
     
    The flip side to ICL is that many cricket boards, including Pakistan, are peeved that cricketers were taken. Do you feel that this will negatively affect your ability to go after their TV rights?
    I do not think that there is a conflict over here. The businesses are separate. If our bid is the highest, then it will come to us. A good price is what any board would look for. The best man wins. I don‘t think that the board will be concerned about who offers the
    highest.
     
    How is the relationship with Ten Sports working out?
    We have been partners for a year and a half. It is working well. There is content sharing. We distribute Ten Sports. They handle our ad sales. The FPC is made by a central team. If there are clashes, then the programmes get split between the two channels.

    The Uefa Champions League sometimes has two games at the same time. So we air one match. In fact, we started doing this before we partnered with them. This offers the power of two.
     
    You are also doing an initiative Goal 2010. How did this idea come about and what progress has been made?
    This came about when Fifa president Sepp Blatter came down to India. This sport has a huge potential. We are putting money into this sport and in a couple of years, we will start seeing the results. We do a lot of school soccer tournaments.

    Our focus is at the grassroots level. We need to emerge as champions at the Asia level by 2010. We should be among the top five teams in Asia. Ten Sports airs domestic football in the Middle East. We are also working with the AIFF at tweaking the format of domestic football.
     
    Is the appeal of soccer moving beyond the three states of Goa, Kerala and West Bengal?
    Yes. It is getting popular in parts of states like Gujarat and Maharashtra.
     
    Do you think corporatisation will help sports like soccer and hockey to move forward?
    It can certainly help soccer. Hockey, however, is on a downturn not just in India but also abroad. In soccer, you have 32 teams playing the World Cup. In hockey just seven or eight teams play the event. Even in those countries the popularity is not as high as it should be.
     
    How is Zee Sports faring on the distribution front?
    The ICL has done us a lot of good. We have achieved 50 per cent connectivity. This rose from 25 per cent over the last three months.
     
    What property acquisitions were recently made?
    Zee and Ten Sports acquire things together. We renewed the West Indies cricket rights. We have the US Open tennis event for the long term.

    India is a unique country in that there are several sports channels but only one sport dominates. In other countries there are only two sports channels but multiple sports are followed.

    This is why the price of rights are going up dramatcially in India due to
    competition.
     
    Finally on the advertising front brands at the moment are not sure about how to use sport beyond cricket. Do you see this changing in the near future?
    It is changing already. A lot of advertisers are going to Golf. Once the Indian advertisers start to understand the true value of sponsorship that goes beyond just TRP, things will change. The best example is what the EPL has done for Barclays.

    This, though, has been built over several years. Indian companies are realising that they should invest in sport over a long term. The advertiser has to invest with the sports federation.

    should invest in sport over a long term. The advertiser has to invest with the sports federation.

    competition.
     
    Finally on the advertising front brands at the moment are not sure about how to use sport beyond cricket. Do you see this changing in the near future?
    It is changing already. A lot of advertisers are going to Golf. Once the Indian advertisers start to understand the true value of sponsorship that goes beyond just TRP, things will change. The best example is what the EPL has done for Barclays.

    This, though, has been built over several years. Indian companies are realising that they should invest in sport over a long term. The advertiser has to invest with the sports federation.
  • ‘We are the second stickiest channel in the category today’ : Nina Elavia Jaipuria – Nick India VP and GM

    ‘We are the second stickiest channel in the category today’ : Nina Elavia Jaipuria – Nick India VP and GM

    Driving Nick India from a market share of a mere 9 per cent to 18 per cent has been a phenomenal journey for Nick India VP and GM Nina Elavia Jaipuria. The eight-year old kids’ channel got its act together last year and since then there has been no looking back. After years of relative reticence, popular characters Spongebob, Ninja and Perman are lifting the channel up.

     

    In an interview with Indiantelevision.com’s Richa Dubey, Jaipuria reveals what strategy worked for Nick and how she plans to grow the kids’ channel in a fiercely competitive marketplace.

     

    Excerpts:

    Nick has taken its channel share from 9 per cent in January 2007 to 18 per cent by the year-end. What has led to this fast growth?
    There was no fixed mantra but just a few insights which helped us get to the position where we are now. To feel the pulse of the kids, we built a connect with them, Indianised the channel and went beyond traditional TV.

     

    Everything done on the channel was done in a fashion to connect with kids – right from the way we packaged our shows, to dubbing and selecting the content, and scripting them.

     

    We have been very innovative in marketing our channel. We add an Indian flavour to whatever we do. For example, we celebrated festivals like Janmashtami by putting slime in the handi. We did Holi with Holi flash.

    While every channel in the genre is trying to do the same, how did you ensure to look different?
    Our first effort was to Indianise the channel and that worked wonders for us. It helped us in building affinity with kids.

     

    We interacted with kids more and more. We were no more a passive channel that they used to watch. We became a regular destination for them. We built a bond with the child and at every point of time the kid could have a dialogue with us through IVRS, SMS or through our website. There were initiatives like “Bhoot Aya,” “Chaddhi Buddy,” etc. which kept the kids engaged.

     

    In 12 months, we did some 19 initiatives. This means that at any given point of time, a kid could actually interact with us.

    Nick was perceived to be a very western channel. Wasn’t that a hindrance in getting the kids’ eyeballs?
    Yes, for a while, Nick was thought of as a very western channel with shows that were international. We acquired shows from the Asian territory and Indianised them. Shows like Perman, Munnabhai, Ninja Hatori. were Asian and brought a lot of Indianness on the channel.

    How interactive was Nick with kids?
    Interactivity is not just about interacting but about having a lot of fun. A lot of ideas were out of the box. Through initiatives like “Chaddhi Buddy,” where we ran a contest, we took best friends Spongebob and Patrick to the winner. Several other initiatives like Lot Pot, Pakda Pakdi, Masti Dosti, Chak De Ninja wih Ajay Jadeja or Gift Mangta, etc. helped us build the connect. Fundoo Star was another very innovative initiative whereby we got the kids on the TV.

     

    Engagement is very important as it keeps kids away from the remote. Our programming was such that it made them not to surf in and out of the channel, and made it very sticky for the kids. Following this, channel stickiness grew by 40 per cent. We are the second stickiest channel in the category today.

    What was the 360-degree approach you adopted?
    The other thing was enhancing the connection with a 360-degree approach. We went to places where kids were present. If they were watching general entertainment channels (GEC), then we had our ads on the GECs so that we got noticed by our TG and their parents. We promoted ourselves on the channel which families and kids together watched. We had promotions running across shows like Sa Re Ga Ma Pa Lil Champs, Voice of India and Boogie Woogie, which are popular among kids and families.

     

    We also did a lot of activities in shopping malls and schools. Nick went beyond TV and made it tangible. Kids could touch and feel their favourite characters, and that is the ultimate thing for them.

     

    Today it is all about viral and word of mouth. We also went on to retail our properties across various categories – apparels, story boards, PC games, water bottles, etc. Nick characters also appeared in Diamond Comics.
    ‘We would utilise our foreign library first and only then would we get into local content‘

    In terms of programming, how have you distinguished yourself from the other channels?
    As a kids’ broadcaster, it is important to realise that kids come to TV for relief. They want to be away from teachers and parents through Nick. We are a clean and responsible broadcaster. Within the genre, we offer a variety of programming. Our shows have slapstick comedy and silent humour, and even if there is a little action, it only adds to the humour.

     

    We realised that movies are a big source of entertainment for kids. So we launched “Nick Home Cinema” which has so far done very well.

    Could you please elaborate on your summer line-up?
    A new show Niender will kick off on 21 April. We also have a couple of new movies like Dinotopia and Under the Black Flag.

     

    We will show an entirely new series of Ninja Hatori and Perman which will be aired back to back. We are also planning interactive stuff around Mother’s Day which falls on 11 May.

    Like others in the genre, do you also have plans to foray into local content production?
    Kids’ content knows no boundaries. We have such a huge library worldwide and it has been popular. We would utilise it first and only then would we get into local content. It is just a matter of time. There is a lot of content still to be exploited. Until we have utilised all of that, I don’t think we will go ahead and manufacture it.

    Do you think that frequent channel launches are affecting the kids’ genre?
    No, not at all. In fact, the genre has grown and it’s all due to the offerings of the other channels. A kid does not want to watch a GEC. S/he needs to be given something different.

     

    There has been an increase in kids viewership. Kids are continuously getting enticed by the channel offerings. GECs do not focus on kids at all. The more focused and customised the offerings, the better is the growth of the category.

     

    Moreover, pester power is also influencing parents to let kids spend more time in front of TV.

    How much has passive viewership helped the channel?
    The trend is slowly changing. It’s now parents spending more time with kids on the kids’ channels. Kids’ programmes are very inclusive so the parents can also watch along with their kids. A lot of co-viewing is happening.

    Advertisers are taking advantage of that?
    Pester power and passive viewership have helped the channels in terms of advertisements. A lot of FMCGs, insurance and telecom brands have started advertising on kids’ channels. None of these directly target kids, but they obviously understand that co-viewing is happening.

     

    We ourselves started with 17 brands and now we have around 80 on board.

    Even GECs show kids’ programmes during weekends. Do you see that spoiling your Sunday line-up of shows?
    I would not deny that anything that is catering to a kid is a threat to us. Kids are not channel loyal; they are programme loyal. A kid watches a particular channel because of the show. The fact is that there is a lot of scope in kids, and so GECs are catering to them. Kids will watch a good film on any channel. But as a core kids’ broadcaster, we provide a complete 360-degree experience to the kids. We have our own set of marketing initiatives which make us stand apart.

    How do you ensure that Nick reaches to kids beyond TV in tier-2 cities?
    We normally try and reach cities in the Hindi speaking markets (HSM). We select key cities in UP, MP, Rajshthan and other parts in north India such as cities like Badodara, Surat, Ajmer, Jaipur, Allahabad, Varanasi and few others.

     

    We are available to around 24 million C&S homes.

    Do you have any plans to expand in the southern market?
    Our audio feed is available in English. We will consolidate our presence in HSM and only then explore the southern market. In Chennai, we are available in Cas (conditional accesss system) homes.

     

    We have syndicated some of our shows like Dora-the Explorer and Avtaar to Sun Network’s Chutti TV. We also have a tie-up with Jet Airways, who play our shows on the flights.
    Is there an increase in ad sales during vacations?
    Yes, there is but not much as it is seasonal. As far as viewership is concerned, vacation-watching contributes 20 per cent of the channel’s total audiences.
  • ‘We look at the IPL as a business and a media investment’ : Hiren Pandit- GroupM ESP managing partner

    ‘We look at the IPL as a business and a media investment’ : Hiren Pandit- GroupM ESP managing partner

    Being a regional player in the media business, Deccan Chronicle saw an opportunity in IPL to grab the national platform in line with the company’s strategy to step into new markets. It bought the Hyderabad team franchise which was named as Deccan Chargers while GroupM ESP played the consultancy role.

     

    Indiantelevision.com’s Ashwin Pinto caught up with GroupM ESP managing partner Hiren Pandit to find out about the plans for IPL, its usefulness as a brand-building exercise and the progress that has been made so far.

     

    Excerpts:

    What progress has GroupM ESP made since launch?
    We work in the areas of entertainment, sports and partnerships. We have broken the entertainment business into two spaces – film and TV content. We have done over 250 hours of branded content programming on TV. One of them was for NGC’s Genius where we got in Lufthansa as a partner for that show.

     

    In the film space, we help with in-film placements and also with partnerships. We do 25-30 in-film placements and partnerships a year. We got Reebok involved with Goal. Reebok launched a range of Goal products in their stores.

     

    Another innovation was helping Virgin Mobile partner with Channel (V) for the first live movie shot. Richard Branson actually danced on stage. We also worked with the Johnny Walker Golf tournament. Now we are working on the IPL with our partner Deccan Chronicle. We act as a consultancy for them.

    What is the aim when you are providing solutions to clients?
    We look for long-term strategic solutions. It is about creating a consumer connect in an increasingly fragmented market. Consumers spend time on different things at the same time. The effectiveness of the 30-second spot is reducing. Spends are going towards non-traditional media. We need to be present in this space. We give clients solutions that are out of the box and go beyond conventional media buying. Media is anything that consumers relate with and our aim is to provide solutions to clients that consumers can relate to. The Goal deal was one such example.

     

    In the partnership space we have deals for content creation, sales. We partner companies with implementation capabilities. The thinking, planning is what we do. The implementation is sourced. We are looking at a partnership for the marketing of sporting events and sports products. We also work with production houses. We worked with Miditech for the NGC show. The client requirement is our priority. A partnership is driven by a client need.

    What role does the IPL play in the overall scheme of
    things?
    We look at the IPL as a business opportunity. The intention was to see if we could do something substantial in that space with a partner. Deccan Chronicle loved the idea. We helped them bid for the team, players, seating, corporate boxes. We believe that it is a team that we also own.

     

    There are two poles of thinking. Some feel that it will not work. We feel that it will work. It is already a $2 billion industry straight away. The industry has been created overnight. The way the top players come in shows that the boards back it strongly. IPL is about cricket first and then entertainment. You cannot let the two merge. If it does, then the event will not do well. The cricket element should not be touched. As long as the quality of that is high, everything will fall into place.

    How does IPL help Deccan Chronicle from a brand
    building perspective?
    It gives Deccan Chronicle a platform on the national stage. It has two editions – in Andhra Pradesh and Tamil Nadu. They are looking to launch in other markets. They are also looking at a business daily. The IPL gives them visibility across the nation.

     

    While Deccan Chargers is a separate business, it can be used as a platform to build awareness for Deccan Chronicle. Markets like Delhi and Jaipur will get to know of Deccan Chronicle through the IPL which otherwise would not have been possible. It makes it easier for them to enter new markets.

     

    At the same time they have put in a lot of money to get the team and we have to make sure they get their money back.

    What was the strategy you followed in bidding for
    Hyderabad and the players?
    Initially we wanted to launch two to three teams. However the IPL rules did not allow that. So we decided to have a franchise in either Hyderabad or Bangalore or Chennai. Hyderabad was our first priority. We did a lot of homework in terms of different revenue streams. We predicted the kind of revenue television would bring in. We also predicted local revenues.

     

    We were, thus, able to figure out the bidding range we should be at. There were other players like GMR who are Hyderabad-based and so we needed to ensure that we came out on top to keep them out of Hyderabad. We got what we wanted. As far as the team is concerned, it took us two weeks of work to form a strategy. We gave ourselves five options of teams each of which were unique by themselves. They took into account the IPL rules as well as the local talent available in Orissa, Hyderabad and Andhra Pradesh.

     

    There was $5 million available. $17 million was the total base bid price of all players. Since the total purse that could be spent was $40 million, $23 million was the possible variation. We listed what we believed players would be bought at. Some players were given at 25 per cent or 50 per cent or 80 per cent depending on their availability to play. So you had more money to play with. VVS Laxman was graceful enough not to take icon status so that we would have more money. We followed a batting order process to select players we wanted. Some players were got reasonably but we did not overprice ourselves with any player.

     

    We looked at it from a T20 perspective. We wanted players who can bat up and down the order like Afridi. Gibbs can also do the same. Gilchrist has a dual role of a batsman and wicketkeeper. Symonds is also a match winner.

     

    Ladbrokes has rated us as one of the top teams to win the IPL. The onus is for the players to make sure it happens. The job of delivering a good side has been done. It is now a question of on-field delivery.

    Could you talk about the team’s positioning?
    The name of the team is Deccan chargers. We are not a team of stars. We are a unit and this needs to come across. We are there to play hard and win. We do not want superstars. We want players who will operate as a team. We are a bunch of individuals playing as a team. Deccan Chargers are all about Deccan. Hyderabad Deccan is associated with royalty. The charging bull, red eye, gold colour all stand for certain attributes.

    What plans are there to attract women and children?
    We have certain plans. One of them is a school programme. In the stadium, we are looking to create a family enclosure so that women can come. We had thought about having a women’s only enclosure but that may be some time way. We are trying to create a family entertainment atmosphere. You need to make it pleasurable outing for the family. The venue has to be comfortable.

     

    We started communicating with people from the day that we got the Hyderabad franchise. We ran an ad asking what people would want the team to comprise of. The build up started from there. We are doing activities in malls and multiplexes in Hyderabad. We have made a huge bat so that people can sign wishing the team good luck.

    What about creating a fan base? How long will it take
    to create one like say a Manchester United following?
    It will take at least two to three years. This is our second task. We need to make sure that fans know that it is a privilege for us to be associated with them. This year time has been too short to start the process of building a fan base. The only fan following we have as of now is on our website where half the hits come from the US.

     

    They already want a T-Shirt and so build up is happening. We are looking at privileged dinners, special ticketing offers, T-shirts, player interaction as time goes by. People at the moment are not used to a city-based team that has players from different loyalties. That connection has to be built up by the franchisees. Today fans relate to cricket with the country but over time people will root for their city. They will believe that an Andrew Symonds can play with VVS Laxman in the same time. This is when fans will start to bond with teams.
    ‘IPL gives Deccan Chronicle a platform on the national stage. It makes it easier for them to enter new markets‘

    How is the team doing in terms of sponsorships?
    We have structured our deals differently from other franchises. Everybody is selling logos on T-shirts – front and back.

     

    We will have a team partner. That partner will have ownership of the team. The logos on the team will go to the partner.

     

    The second partner is entertainment. Anything to do with entertainment from cheerleaders to fours and sixes hit goes to that party. The third partner is the performance partner. This is for things like man of the match, six sixes in an over etc. Then there is a partner for pre game entertainment. The fifth partner is the apparel partner. Each association is distinct and has clear value. We do not want to be like a F1 car.

     

    The entertainment partner has to be related to entertainment. The performance partner has to be known for performance. Otherwise you mix things and brands get associated with things that do not fit with what they stand for. We have structured our partnerships so that we leverage the value. We will announce deals in this regard next week, as that is when our players will be together.

     

    Since we are a newspaper we advertise in it. Other teams would have to buy ads. SRK uses the PR route and has also tied up with Telegraph locally. Our media costs come down since we are a media owner. We look at the IPL as a business and a media investment. If someone is losing money it could be that he is using it as an investment for his own benefit. In this case you need to look at it as a media investment and not as a revenue opportunity.

     

    If you treat it as a business you can make money in the first three years. In three years we expect to make money and it could be for our pocket and also for media investment opportunities.

    One of the challenges is to keep the brand alive after
    the event ends. What plans does Hyderabad have?
    It is not just about a fan base for us. It is also about giving back to cricket. Deccan Chronicle wants to be associated with cricket at the grassroots level. We will start coaching camps, academies. Our partners will also be involved here. This is the difference between just being a sponsor and being a partner.

     

    Our involvement with cricket is not just about IPL. We will tie up with the Hyderabad Cricket Association, Orissa Cricket Association to see how we can get involved with their tournaments and bring value. We are also looking to get involved with other sports.

    What about taking the team abroad for matches?
    That might be an option as long as the sanctity of the on field play is not compromised. If it is a charity game for instance, then it has to be clear.

    If a team fares poorly in the IPL and finishes eighth,
    will the franchise suffer?
    It depends on the quality of play. If the matches were close and hard fought, then fans will not mind. If, however, the team consistently played badly and failed to compete, then not only will the fans ask questions but so too will the sponsors. It will also be a challenge to fill up the stadium as you go forward. There will be a chain reaction.

     

    As far as players are concerned, if one plays badly then the news will travel and the player will be dropped. It is about delivery. A lot of money has exchanged hands on account of expectations. The effort needs to be put in.
    What on-air and mobile plans do you have?
    Our site is already up and running. There are lots of forums and debates. On the mobile we will look at it in terms of ticketing and SMS. But the real fun will come when 3G applications come in and they will impact how people view cricket. This will be in the form of streaming video.
    What about tying up with channels for content related
    to the Hyderabad team?
    We are in talks with channels that want to do off-cricket coverage of our team. We will do this in conjunction with our players.
    With the IPL trying to attract women and children, do you see this helping other forms of the game in expanding the viewer base?
    I don’t see it affecting test cricket. It might help ODIs after a period of time. T20 means a faster rate of scoring which will be transferred to ODIs. If you score six to seven an over in T20, you will see the same rate in ODIs. When a lot of action is going on in terms of high scoring, we have noticed that more women tune in.
     

    On the negative side the kind of stroke play that takes place should not deviate from what quality cricket is. Technique should not suffer due to T20.
    GroupM ESP also has a tie up with John Abraham. What
    is the nature of this deal?
    We have got into the celebrity endorsement and management space. We look after his sponsorships and endorsements. We are looking at other celebrities. The celebrity space has blown apart with Dhoni and Yuvraj and MGs (minimum guarantees) being the norm. We are not sure about taking that route.
     

    The celebrity management space is different in India. Abroad, companies manage this sphere. In India, though, individuals manage it. The Indian model must evolve. There is no valuation process in place to see if the return on investments are good. It has to be a win-win situation between the celebrity and the client. Right now, this is a cluttered space.

     

    The brands that John has endorsed like ESPN and Wrangler stand for values that fit John. You need to keep in mind the sentimental values of individuals. Many celebrities, though, endorse brands where there is no fit. The association is unreal and nobody believes it. Consumers are not dumb.
    How do cricket and Bollywood stack up against each
    other?
    Celebrities have to be careful about the brands they endorse. If they make a mistake, then they pull their own brand value down. Bollywood is less risky. If an actor has a flop, his value does not go down. If a cricketer, however, gets dropped from the national side, there is a huge difference. Brands that he is endorsing will not get full value. The young cricketers are coming in at scary price points. I am not sure how many brands can afford them. If he is not in the team six months later due to in injury, the
    brand is in trouble. The valuation equation should make sense.
  • ‘We will breakeven after the third year’ : Fraser Castellino- Emerging Media CEO

    ‘We will breakeven after the third year’ : Fraser Castellino- Emerging Media CEO

     The Indian Premier League (IPL), which kicks off next month, has brought in $2 billion into the Twenty20 format over a 10-year period, involving big corporates like Reliance Industries and Bollywood Badshah Shah Rukh Khan.

     

    Emerging Media, which has two other shareholders in Sporting Investment Group and Lachlan Murdoch, has bought the Jaipur team franchise for $67 million and is hoping to rake in profits after the third year.

     

    Indiantelevision.com’s Ashwin Pinto caught up with Emerging Media CEO Fraser Castellino to find out about his plans for the team and the impact IPL will have on the game.

     

    Excerpts:

    What prompted Emerging Media to be involved with the IPL?
    We have been in the sports business since 2005. Our first venture into cricket was when we bought the management rights for the Leicestershire County Cricket Club. Then we did an international T20 tournament that people today call the Champions Tournament.

     

    We came into India in 2006 and launched the reality show Cricket Star based on the T20 format. We are looking for the next Indian superstar. We saw IPL as a big opportunity as we also have experience in running clubs.

    What is the IPL trying to achieve?
    The IPL is BCCI’s attempt to bring in funds and get corporates involved with the development of cricket. The Board is trying to improve the infrastructure and facilities available to players who participate at a domestic level.

     

    By whipping up support for city-based league teams, the BCCI is also trying to bring new fans into the stadiums.

    The tradition of supporting a regional team is not present in India. Do you feel that this will be a hindrance in terms of the IPL taking off?
    I don’t think that there is a hindrance. Everything about the IPL represents an opportunity to grow the game. The challenge particularly for us is to create a fan base that supports the Rajasthan Royals.

    Another issue is that the BCCI wants the IPL to be for India what EPL is for English soccer. At the same time, the players are with EPL for several months each year and there is no conflict with an international schedule. How will IPL manage to do this?
    One of the challenges franchisees face is taking the IPL team that participates in the tournament for 45 days and stretching it across the year. The international calendar is packed. We are working with the IPL Governing Council to see how the tenure can be extended. We have a squad of 22 players. While all may not always be available, we need 11 players at any given point in time. We are looking to take the Rajasthan Royals to play in other countries including Australia and England.

    Having bought the Jaipur franchise for $67 million, what breakeven period is Emerging Media looking at from IPL?
    We will be investing $12 million in the first year which includes the payout for the team franchise, player costs, marketing, etc. Our assumption is that the business will breakeven after the third year. If IPL picks up, the breakeven can happen before that.

    How much will Emerging Media spend towards marketing?
    We will spend close to $2-3 million on this. A 360-degree campaign will break shortly. O&M has put this together. There will be a TVC, radio spots and outdoor activities. There will also be a school, college and mall activation campaign. This will happen in Jaipur, Delhi NCR, and in Gujarat.

    What brief was given to the agency?
    The brief is that the campaign must appeal to people at a local level. It must make people want to be supporters of Rajasthan Royals. It must inspire people to either switch on the television or come to the stadium.

    Have you tied up revenue deals?
    We are in advanced talks with companies for sponsorship deals. We also have merchandising and licensing activities. Besides, there are central revenue streams including ad and broadcast rights.

    Is there any chance that Emerging Media might sell a stake in the IPL team?
    Not in the first year. We might sell a stake later if we want to inject fresh capital into the company.
    ‘One of the challenges franchisees face is taking the IPL team that participates in the tournament for 45 days and stretching it across the year‘

    What is the strategy you followed in selecting your team?
    Our strategy was clear. We knew that there would be at least two auctions. The first auction had the stars. We knew that there was also a lot of talent that was not a part of that auction.

     

    During the first auction, we picked players and also set price points at which we felt that they had good value for us. If they exceeded these price points, we let them pass.

     

    We did our research, and went after certain players. Now when you look at my team, they are at least as good as the others if not better. And we have spent $3.5 million while the others have burnt $5 million.

    Are performance and marketability of players of equal importance?
    Performance is more important. You can have glamour and entertainment, but at the end of the day we are here to win matches. Marketability has its place but it is not the primary determining factor for us.

    Could you talk about the branding of the team and how your star player Shane Warne will be used?
    When we selected Jaipur, we were clear that we wanted to be in the state of kings. The name “Rajasthan Royals” reflects the characteristics of that state.

     

    Shane Warne was a strategic choice that many people do not understand. He has an incredible record in county cricket. When we signed him as both captain and coach, other teams who have specialist coaches were surprised. Specialist coaches are fine but Warne transformed the fortunes of Hampshire in county cricket. He took them from being a non-performer to a team to be reckoned with.

     

    The IPL is about youth and developing domestic cricket. Now that he has retired, Warne is keen to come in and give back to the game by helping youngsters. The IPL is the perfect platform for him to do just that.
    Has Emerging Media also appointed a consultant to help its IPL team form a cohesive unit?
    We have a support team in place that includes physiotherapist John Glocter and assistant coaches. We believe that our team will be inspired by our captain and the support structure, and become a cohesive unit.

    Has T20 brought sports and entertainment closer?
    The emergence of T20 has been interesting because as working life has become more hectic, people are increasingly looking for instant gratification.

     

    In India, while it has not been played often, we feel that this format will be well accepted. Since the IPL games will be played in floodlit stadiums in the evening, it will attract more women and families to enjoy an evening out.
    How will IPL broaden the corporate involvement with cricket overall?
    One of the things that will happen is that IPL will support academies, coaching centres, etc. These are feeder systems into T20 cricket.
    How did the idea of doing Cricket Star come about?
    We wanted to be a body that works with the BCCI but at the same time goes off into areas where it has not managed to find talent. We believe that there are people who, while possessing talent, do not have the money to turn up at the BCCI’s coaching camps. We give them the chance to spend just two days with our experts and decide if they are good enough or not. If they are good enough, the sky is the limit.

    How have you grown the event over the years and how successful has it been in uncovering hidden talent?
    I think what Cricket Star lacked in the first season was the gratification platform. It wasn’t clear what would happen with the chosen talent. Today anybody who is selected gets a contract with the Rajasthan Royals. The format has not changed much in terms of the testing process.

     

    We are clear in terms of what we look for in a T20 cricketer. Last year, we found two boys who were very good. But we had restricted entries to those who were absolutely fresh and had not played first-class cricket. They had never been part of an under 15 or under 17 squad. This year, we have opened it up for everybody.

    Finally, are you looking at other sports?
    Yes! We are interested in soccer, tennis and golf. There is potential for these three sports to grow in the country. We are looking at different options in terms of how to go about it. In terms of whether we do a reality show around these sports, it depends on the level of interest. There are many things that can work in sport provided you are willing to invest and watch it grow gradually.

  • ‘We will breakeven after the third year’Fraser Castellino- Emerging Media CEO

     
    ‘We will breakeven after the third year‘

    The Indian Premier League (IPL), which kicks off next month, has brought in $2 billion into the Twenty20 format over a 10-year period, involving big corporates like Reliance Industries and Bollywood Badshah Shah Rukh Khan.

    Emerging Media, which has two other shareholders in Sporting Investment Group and Lachlan Murdoch, has bought the Jaipur team franchise for $67 million and is hoping to rake in profits after the third year.

    Indiantelevision.com‘s Ashwin Pinto caught up with Emerging Media CEO Fraser Castellino to find out about his plans for the team and the impact IPL will have on the game.

    Excerpts:
     

    What prompted Emerging Media to be involved with the IPL?
    We have been in the sports business since 2005. Our first venture into cricket was when we bought the management rights for the Leicestershire County Cricket Club. Then we did an international T20 tournament that people today call the Champions Tournament.

    We came into India in 2006 and launched the reality show Cricket Star based on the T20 format. We are looking for the next Indian superstar. We saw IPL as a big opportunity as we also have experience in running clubs.
     

    What is the IPL trying to achieve?
    The IPL is BCCI‘s attempt to bring in funds and get corporates involved with the development of cricket. The Board is trying to improve the infrastructure and facilities available to players who participate at a domestic level.

    By whipping up support for city-based league teams, the BCCI is also trying to bring new fans into the stadiums.
     

    The tradition of supporting a regional team is not present in India. Do you feel that this will be a hindrance in terms of the IPL taking off?
    I don‘t think that there is a hindrance. Everything about the IPL represents an opportunity to grow the game. The challenge particularly for us is to create a fan base that supports the Rajasthan Royals.
     

    Another issue is that the BCCI wants the IPL to be for India what EPL is for English soccer. At the same time, the players are with EPL for several months each year and there is no conflict with an international schedule. How will IPL manage to do this?
    One of the challenges franchisees face is taking the IPL team that participates in the tournament for 45 days and stretching it across the year. The international calendar is packed. We are working with the IPL Governing Council to see how the tenure can be extended. We have a squad of 22 players. While all may not always be available, we need 11 players at any given point in time. We are looking to take the Rajasthan Royals to play in other countries including Australia and England.
     

    Having bought the Jaipur franchise for $67 million, what breakeven period is Emerging Media looking at from IPL?
    We will be investing $12 million in the first year which includes the payout for the team franchise, player costs, marketing, etc. Our assumption is that the business will breakeven after the third year. If IPL picks up, the breakeven can happen before that.
     

    How much will Emerging Media spend towards marketing?
    We will spend close to $2-3 million on this. A 360-degree campaign will break shortly. O&M has put this together. There will be a TVC, radio spots and outdoor activities. There will also be a school, college and mall activation campaign. This will happen in Jaipur, Delhi NCR, and in Gujarat.
     

    What brief was given to the agency?
    The brief is that the campaign must appeal to people at a local level. It must make people want to be supporters of Rajasthan Royals. It must inspire people to either switch on the television or come to the stadium.
     

    Have you tied up revenue deals?
    We are in advanced talks with companies for sponsorship deals. We also have merchandising and licensing activities. Besides, there are central revenue streams including ad and broadcast rights.
     

    Is there any chance that Emerging Media might sell a stake in the IPL team?
    Not in the first year. We might sell a stake later if we want to inject fresh capital into the company.
     
    ‘One of the challenges franchisees face is taking the IPL team that participates in the tournament for 45 days and stretching it across the year‘
     

    What is the strategy you followed in selecting your team?
    Our strategy was clear. We knew that there would be at least two auctions. The first auction had the stars. We knew that there was also a lot of talent that was not a part of that auction.

    During the first auction, we picked players and also set price points at which we felt that they had good value for us. If they exceeded these price points, we let them pass.

    We did our research, and went after certain players. Now when you look at my team, they are at least as good as the others if not better. And we have spent $3.5 million while the others have burnt $5 million.
     

    Are performance and marketability of players of equal importance?
    Performance is more important. You can have glamour and entertainment, but at the end of the day we are here to win matches. Marketability has its place but it is not the primary determining factor for us.

     

    Could you talk about the branding of the team and how your star player Shane Warne will be used?
    When we selected Jaipur, we were clear that we wanted to be in the state of kings. The name “Rajasthan Royals” reflects the characteristics of that state.

    Shane Warne was a strategic choice that many people do not understand. He has an incredible record in county cricket. When we signed him as both captain and coach, other teams who have specialist coaches were surprised. Specialist coaches are fine but Warne transformed the fortunes of Hampshire in county cricket. He took them from being a non-performer to a team to be reckoned with.

    The IPL is about youth and developing domestic cricket. Now that he has retired, Warne is keen to come in and give back to the game by helping youngsters. The IPL is the perfect platform for him to do just that.
     
    Has Emerging Media also appointed a consultant to help its IPL team form a cohesive unit?
    We have a support team in place that includes physiotherapist John Glocter and assistant coaches. We believe that our team will be inspired by our captain and the support structure, and become a cohesive unit.
     
    Has T20 brought sports and entertainment closer?
    The emergence of T20 has been interesting because as working life has become more hectic, people are increasingly looking for instant gratification.

    In India, while it has not been played often, we feel that this format will be well accepted. Since the IPL games will be played in floodlit stadiums in the evening, it will attract more women and families to enjoy an evening out.
     
    How will IPL broaden the corporate involvement with cricket overall?
    One of the things that will happen is that IPL will support academies, coaching centres, etc. These are feeder systems into T20 cricket.
     
    How did the idea of doing Cricket Star come about?
    We wanted to be a body that works with the BCCI but at the same time goes off into areas where it has not managed to find talent. We believe that there are people who, while possessing talent, do not have the money to turn up at the BCCI‘s coaching camps. We give them the chance to spend just two days with our experts and decide if they are good enough or not. If they are good enough, the sky is the limit.
     
    How have you grown the event over the years and how successful has it been in uncovering hidden talent?
    I think what Cricket Star lacked in the first season was the gratification platform. It wasn‘t clear what would happen with the chosen talent. Today anybody who is selected gets a contract with the Rajasthan Royals. The format has not changed much in terms of the testing process.

    We are clear in terms of what we look for in a T20 cricketer. Last year, we found two boys who were very good. But we had restricted entries to those who were absolutely fresh and had not played first-class cricket. They had never been part of an under 15 or under 17 squad. This year, we have opened it up for everybody.
     

    Finally, are you looking at other sports?
    Yes! We are interested in soccer, tennis and golf. There is potential for these three sports to grow in the country. We are looking at different options in terms of how to go about it. In terms of whether we do a reality show around these sports, it depends on the level of interest. There are many things that can work in sport provided you are willing to invest and watch it grow gradually.
     
  • ‘Zee’s largest bouquet makes it the best prepared network for digitalisation’ : Joy Chakraborthy – Zee Entertainment Enterprises Ltd President, Head – Revenue

    ‘Zee’s largest bouquet makes it the best prepared network for digitalisation’ : Joy Chakraborthy – Zee Entertainment Enterprises Ltd President, Head – Revenue

     Zee is on an upsurge, driven by its flagship Hindi general entertainment channel. Kicking in ad revenues for the fiscal has not just been Zee TV but also the two regional channels – Zee Marathi and Zee Bangla – who together will make Rs 2 billion. And despite less aggressive movie buying, Zee Cinema will see a 25 per cent jump to rake in Rs 2 billion.

     

    As revenue head for Zee Entertainment Enterprises Ltd, Joy Chakraborthy takes credit for it. His role extends to the regional general entertainment channels (except south) which reside in sister company Zee News Ltd. The sports side of ZEEL’s business, however, doesn’t fall under his supervision.

     

    “I handle the power brands where effort to returns are high,” he says.

     

    Joy also takes pride in continuously doing price-correction deals. Even then Zee is under-priced and there is scope for growth, he says.

     

    In an exclusive interview with Indiantelevision.com’s Sibabrata Das, Joy talks of how Star Plus’ loss in GRPs has been pocketed largely by Zee TV and its regional channels. He also elaborates on Zee’s plans to pile up a huge bouquet so that it stays as the best network prepared for the digital era.

     

    Excerpts:

    How much of an ad revenue growth will ZEEL see in the current fiscal and is this still disproportionate to the rise in GRPs of the network?
    There will be a 65 per cent robust ad sales growth for the channels that are handled by me. Advertisers like to invest in channels which are growing. Zee TV, Zee Marathi and Zee Bangla particularly gained, as the leader channels in these segments (Star Plus, ETV Marathi and ETV Bangla) were falling sharply.

     

    The revenue has grown disproportionate to the GRP growth. The pricing, though, needs correction. We feel we are under-priced. With every new deal, we have corrected the price upwards.

    Are the channels that fall under you (ZEEL channels except sports, and the regional GECs barring the south languages) going to post a revenue of Rs 12.5 billion during the fiscal?
    Since we are a listed company, I can’t reveal the figures of the specific channels.

    As Zee TV is the predominant revenue earner, isn’t ZEEL in as risky a position as Star India is with the dominance of Star Plus?
    Zee TV accounts for 65 per cent of ad revenues that the channels under me generate. But that is how the network business will look like in India. Hindi general entertainment channels (GECs) make bulk of the ad revenue business.

    Zee Next was launched as a flanking channel in the GEC space, but it doesn’t seem to have worked at all?
    Zee Next has a problem. We are doing introspection on what went right or wrong. We will be ready with a plan within 5-7 weeks. Besides, distribution is an issue. But we feel it is not right to pay this kind of carriage fee and spoil the market.

    What is the purpose of launching a flanking channel without aggressively distributing it when in the marketplace there is a scramble for space on choked cable networks?
    Strategically, it is important to have a second GEC as a de-risk business model. The GECs are sitting on Rs 20 billion of ad revenues. In as large a size as this, we can’t put all our eggs in one basket. If viewers want something outside Zee TV, we are offering a different kind of programming in Zee Next. With fragmentation happening, our plan also is to try and grab whatever audiences we can with the concept of a family channel for all age groups.

     

    But we still have to be realistic on the carriage fees. Otherwise, it will affect the business model of the whole network; we are, after all, not a single channel company. We have to take a business rather than an emotional call.

     

    The channel will take time to build. Any GEC with less than 130 GRPs will continue to bleed – and we have been seeing that. But with a new plan in place, we will sort out the distribution and other issues that need to be corrected.
    ‘The loss of GRPs by Star Plus has been made up by Zee TV and its regional channels. Zee Marathi and Zee Bangla are doubling their previous year’s revenues to touch Rs 1 billion each‘

    Isn’t growth of GEC as a category slowing down?
    The GRPs of GEC channels as a category have grown by 6 per cent. Revenue from GECs, on the other hand, have jumped 22 per cent. What is happening is that the GRPs of GECs are getting reorganised. Star Plus, for instance, has seen a fall in GRPs while we have gained.

    Could you elaborate?
    The loss of GRPs by Star Plus has been made up by Zee TV and the regional channels. Our regional channels are operating in the most important primary markets. Zee Marathi and Zee Bangla have particularly grown.

    One reason for the growth of these two channels, according to you, is because the leader ETV is falling. But what sort of ad growth are both of them going to post this fiscal?
    Zee Marathi and Zee Bangla are doubling their previous year’s ad revenues. They will end up making around Rs 1 billion each. The ad rates of regional channels, though getting corrected, are still very low.

    After rolling out Zee Talkies to addess the Marathi market, are you planning to launch a Bengali movie channel?
    We will be launching a Bengali movie channel as it will help us create a wider bouquet in that local market. We have created a GEC, a news and a movie channel in the Marathi market. We will be repeating this combination in the Bengali market. Regional movie channels work for sales as well as help boost distribution.

    Like Kalanithi Maran’s Sun network, are you looking at packing in regional music channels as well?
    We don’t see music channels being viable in these markets.

    Doesn’t Zee have such plans for Gujarat?
    Zee Gujarati didn’t see much growth. Almost 99 per cent of the Gujarati viewership is covered by Hindi GECs and movies. It is not a viable market for india, but has an international distribution story.

    Though Zee Cinema is the second biggest channel in the network, it has been less aggressive in movie buying this fiscal. Will this hurt the revenues?
    For the movie channel category as a whole, GRPs have fallen. But Zee Cinema’s revenue for the fiscal would be Rs 2 billion, up 25 per cent. We are selling better, using all time bands.
    As revenue head, why haven’t the sports, news and southern language channels come to you?
    I am handling the power brands where effort to returns are high. The sports business is cricket-centric and needs dedicated attention. So Ten Sports is handling the ad sales. I already have too much on my plate as the network revenue head.
    Will subscription revenues be sluggish, driven by slowdown in international business and foreign exchange loss?
    Domestic subscription will grow by 30 per cent – and we see the situation improving in next fiscal. The Star bouquet is strong, but we have been catching up this year. We have more pull channels than anybody else – Zee TV, Zee Cinema, Zee Cafe, Zee Marathi, Zee Bangla, Zee Talkies and Zee Studio. International distribution is outside my ambit and I can’t comment on that.
    There is a buzz in the market that the TV18 group channels including CNBC TV18 will soon move to Star DEN?
    There is still time for some channels to move out, if at all. We will soon be making an announcement of more channels in our bouquet to make it stronger.

    Are you referring to Ten Sports moving out from SET Discovery (now MSM Discovery) to Zee Turner?
    I can’t comment on this.

    Zee has the largest bouquet of channels. With carriage fee on the up, how does it impact the business at the net level?
    Since we have a large bouquet, this at one level affects us in carriage deals. But on subscription ground, it helps make our bouquet stronger. We have presence in all genres except kids. The net effect in the long term is beneficial once digitalisation happens. We are the best prepared network for digitalisation.

    What is being done to beef up Zee’s English genre channels?
    Zee Cafe is airing new American shows and has a very loyal viewership. It will grow in ad revenues by 45 per cent this fiscal. Zee Studio’s perception as a repeat channel is changing. The sub-titling has helped us, we will be seeing 37 per cent growth, and it completes our bouquet.

    What is your revenue forecast for the next fiscal?
    Keeping in mind the fragmentation scenario, our target will be to post 30 per cent growth in both ad sales and domestic subscription. It will be a challenging year and we hope that the newcomers don’t spoil the ad sales and distribution market with price cutting and high carriage deals.

    Do you see BARC (Broadcast Audience Research Council) taking off any time now?
    It is a good initiative as it represents an association of broadcasters and advertisers. TV as a medium is very research-focused. The sector is also grossly under-priced. BARC is at an initial stage of progress but the intention is there to set it rolling.

  • ‘Zee’s largest bouquet makes it the best prepared network for digitalisation’

     
    ‘Zee‘s largest bouquet makes it the best prepared network for digitalisation‘

    Zee is on an upsurge, driven by its flagship Hindi general entertainment channel. Kicking in ad revenues for the fiscal has not just been Zee TV but also the two regional channels – Zee Marathi and Zee Bangla – who together will make Rs 2 billion. And despite less aggressive movie buying, Zee Cinema will see a 25 per cent jump to rake in Rs 2 billion.

    As revenue head for Zee Entertainment Enterprises Ltd, Joy Chakraborthy takes credit for it. His role extends to the regional general entertainment channels (except south) which reside in sister company Zee News Ltd. The sports side of ZEEL‘s business, however, doesn‘t fall under his supervision.

    “I handle the power brands where effort to returns are high,” he says.

    Joy also takes pride in continuously doing price-correction deals. Even then Zee is under-priced and there is scope for growth, he says.

    In an exclusive interview with Indiantelevision.com‘s Sibabrata Das, Joy talks of how Star Plus‘ loss in GRPs has been pocketed largely by Zee TV and its regional channels. He also elaborates on Zee‘s plans to pile up a huge bouquet so that it stays as the best network prepared for the digital era.

    Excerpts:
     

    How much of an ad revenue growth will ZEEL see in the current fiscal and is this still disproportionate to the rise in GRPs of the network?
    There will be a 65 per cent robust ad sales growth for the channels that are handled by me. Advertisers like to invest in channels which are growing. Zee TV, Zee Marathi and Zee Bangla particularly gained, as the leader channels in these segments (Star Plus, ETV Marathi and ETV Bangla) were falling sharply.

    The overall revenue growth, however, is still disproportionate to the GRPs. The pricing needs correction. We feel we are under-priced. With every new deal, we have corrected the price upwards.
     

    Are the channels that fall under you (ZEEL channels except sports, and the regional GECs barring the south languages) going to post a revenue of Rs 12.5 billion during the fiscal?
    Since we are a listed company, I can‘t reveal the figures of the specific channels.
     

    As Zee TV is the predominant revenue earner, isn‘t ZEEL in as risky a position as Star India is with the dominance of Star Plus?
    Zee TV accounts for 65 per cent of ad revenues that the channels under me generate. But that is how the network business will look like in India. Hindi general entertainment channels (GECs) make bulk of the ad revenue business.
     

    Zee Next was launched as a flanking channel in the GEC space, but it doesn‘t seem to have worked at all?
    Zee Next has a problem. We are doing introspection on what went right or wrong. We will be ready with a plan within 5-7 weeks. Besides, distribution is an issue. But we feel it is not right to pay this kind of carriage fee and spoil the market.
     

    What is the purpose of launching a flanking channel without aggressively distributing it when in the marketplace there is a scramble for space on choked cable networks?
    Strategically, it is important to have a second GEC as a de-risk business model. The GECs are sitting on Rs 20 billion of ad revenues. In as large a size as this, we can‘t put all our eggs in one basket. If viewers want something outside Zee TV, we are offering a different kind of programming in Zee Next. With fragmentation happening, our plan also is to try and grab whatever audiences we can with the concept of a family channel for all age groups.

    But we still have to be realistic on the carriage fees. Otherwise, it will affect the business model of the whole network; we are, after all, not a single channel company. We have to take a business rather than an emotional call.

    The channel will take time to build. Any GEC with less than 130 GRPs will continue to bleed – and we have been seeing that. But with a new plan in place, we will sort out the distribution and other issues that need to be corrected.
     
    ‘The loss of GRPs by Star Plus has been made up by Zee TV and its regional channels. Zee Marathi and Zee Bangla are doubling their previous year‘s revenues to touch Rs 1 billion each‘
     

    Isn‘t growth of GEC as a category slowing down?
    The GRPs of GEC channels as a category have grown by 6 per cent. Revenue from GECs, on the other hand, have jumped 22 per cent. What is happening is that the GRPs of GECs are getting reorganised. Star Plus, for instance, has seen a fall in GRPs while we have gained.
     

    Could you elaborate?
    The loss of GRPs by Star Plus has been made up by Zee TV and the regional channels. Our regional channels are operating in the most important primary markets. Zee Marathi and Zee Bangla have particularly grown.
     

    One reason for the growth of these two channels, according to you, is because the leader ETV is falling. But what sort of ad growth are both of them going to post this fiscal?
    Zee Marathi and Zee Bangla are doubling their previous year‘s ad revenues. They will end up making around Rs 1 billion each. The ad rates of regional channels, though getting corrected, are still very low.
     

    After rolling out Zee Talkies to addess the Marathi market, are you planning to launch a Bengali movie channel?
    We will be launching a Bengali movie channel as it will help us create a wider bouquet in that local market. We have created a GEC, a news and a movie channel in the Marathi market. We will be repeating this combination in the Bengali market. Regional movie channels work for sales as well as help boost distribution.
     

    Like Kalanithi Maran‘s Sun network, are you looking at packing in regional music channels as well?
    We don‘t see music channels being viable in these markets.
     

    Doesn‘t Zee have such plans for Gujarat?
    Zee Gujarati didn‘t see much growth. Almost 99 per cent of the Gujarati viewership is covered by Hindi GECs and movies. It is not a viable market for india, but has an international distribution story.

     

    Though Zee Cinema is the second biggest channel in the network, it has been less aggressive in movie buying this fiscal. Will this hurt the revenues?
    For the movie channel category as a whole, GRPs have fallen. But Zee Cinema‘s revenue for the fiscal would be Rs 2 billion, up 25 per cent. We are selling better, using all time bands.
     
    As revenue head, why haven‘t the sports, news and southern language channels come to you?
    I am handling the power brands where effort to returns are high. The sports business is cricket-centric and needs dedicated attention. So Ten Sports is handling the ad sales. I already have too much on my plate as the network revenue head.
     
    Will subscription revenues be sluggish, driven by slowdown in international business and foreign exchange loss?
    Domestic subscription will grow by 30 per cent – and we see the situation improving in next fiscal. The Star bouquet is strong, but we have been catching up this year. We have more pull channels than anybody else – Zee TV, Zee Cinema, Zee Cafe, Zee Marathi, Zee Bangla, Zee Talkies and Zee Studio. International distribution is outside my ambit and I can‘t comment on that.
     
    There is a buzz in the market that the TV18 group channels including CNBC TV18 will soon move to Star DEN?
    There is still time for some channels to move out, if at all. We will soon be making an announcement of more channels in our bouquet to make it stronger.
     

    Are you referring to Ten Sports moving out from SET Discovery (now MSM Discovery) to Zee Turner?
    I can‘t comment on this.
     

    Zee has the largest bouquet of channels. With carriage fee on the up, how does it impact the business at the net level?
    Since we have a large bouquet, this at one level affects us in carriage deals. But on subscription ground, it helps make our bouquet stronger. We have presence in all genres except kids. The net effect in the long term is beneficial once digitalisation happens. We are the best prepared network for digitalisation.
     

    What is being done to beef up Zee‘s English genre channels?
    Zee Cafe is airing new American shows and has a very loyal viewership. It will grow in ad revenues by 45 per cent this fiscal. Zee Studio‘s perception as a repeat channel is changing. The sub-titling has helped us, we will be seeing 37 per cent growth, and it completes our bouquet.
     

    What is your revenue forecast for the next fiscal?
    Keeping in mind the fragmentation scenario, our target will be to post 30 per cent growth in both ad sales and domestic subscription. It will be a challenging year and we hope that the newcomers don‘t spoil the ad sales and distribution market with price cutting and high carriage deals.
     

    Do you see BARC (Broadcast Audio Research Council) taking off any time now?
    It is a good initiative as it represents an association of broadcasters and advertisers. TV as a medium is very research-focused. The sector is also grossly under-priced. BARC is at an initial stage of progress but the intention is there to set it rolling.
  • ‘We expect that HD will arrive in India with sports and general entertainment’ : Krishan Sanghi – Avid country head

    ‘We expect that HD will arrive in India with sports and general entertainment’ : Krishan Sanghi – Avid country head

    As India enters a digital environment with more delivery platforms like direct-tohome (DTH) scheduled for launch this year, television technology firms are looking to service broadcasters who will face new challenges. One such firm is Avid. It offers products and services for digital nonlinear media creation.

     

    Indiantelevision.com’s Ashwin Pinto caught up with Avid country head Krishan Sanghi to find out more about the company’s plans.

     

    Excerpts:

    When Avid says that it is a pioneer in digital nonlinear media creation, what does it mean?
    Nonlinear media creation allows one to transfer all the shot material or “rushes” onto a computer hard disk. Unlike linear editing where editing can only be done in a chronological order, the hard disk is a “random access” device which can play your shots one after another regardless of the order they were on your tape.

     

    Through its Unity storages and Interplay, Avid has pioneered this further to allow multiple users to simultaneously work on the same media and edit, modify and create them in a collaborative environment. This allows processes to be conducted independent of a particular sequence and is, therefore, nonlinear in nature. This technology has revolutionised content creation in video, audio, film, animation, gaming and TV broadcast industries.

    Could you give me an overview of the products and solutions in Avid’s portfolio?
    Our products are used to make television and news shows, commercials, music videos and CDs, corporate/industrial productions and major motion pictures. We deliver solutions that make, manage and move media.

     

    Avid provides solutions in areas like video, news editing, film editing, special effects for video and films. We also offer integrated newsroom solutions as well as networked storages for workgroup editing. Besides, we offer broadcast and playout automation as well as on-air graphics and animation.

    What is the global broadcast technology market worth?
    The global broadcast technology market is estimated to be worth more than $10 billion, and is set to grow at an expected rate of 11 per cent with the pace being set in Europe, Middle East and Africa.

    What is Avid’s share in this?
    Avid has converted the highest number of broadcasters to digital news workflows in the industry with more than 250 end-to-end news work group installations. Our broadcast and cable customers include national and international broadcasters, such as NBC, Reuters, CBS News, Fox Television, the BBC, NDTV, CNBC, Times Now and DirectTV. Our clients also include network affiliates, local independent television stations, web news providers, and local and regional cable operators that produce news programming.

     

    We are currently present in 22 countries including India, the US, Canada, Japan and Korea.

    In terms of revenue and business generation, how much do India and Asia contribute?
    India is part of the Middle East and Africa region in Avid. Although we have been well represented here by our dealers, it’s only now that we have started to properly focus on the region.

     

    Our customers, installed base and revenues have been steadily growing, especially in the broadcast industry. Customers’ confidence in Avid’s technology, products and services is reflected in repeat orders for their new projects. We have invested in trainings and have the best trained manpower in broadcast support and as a result we are targeting a very healthy growth.
    ‘It’s only now that we have started to properly focus on the region. Our customers, installed base and revenues have been steadily growing, especially in the broadcast industry‘

    What growth is being targeted from here?
    A healthy and sustainable revenue growth is being targeted and has been achieved. This has resulted in healthy demand for people who are able to use our software and systems. So it is not just a question of selling products for us. We are also investing to ensure that training in Avid products is available countrywide.

     

    Till date, Avid provides training which is available at more than 50 training institutes, a high percentage of which is part of graduation in mass media. We expect to double this number this year, and to achieve this we are partnering with leaders in the IT industry.

    Who are Avid’s major clients in India and could you give me examples of how your solutions are being used by them?
    Avid targets business solutions and not products alone. Some of our major clients in India are NDTV, Star TV Network, Network18, Neo Sports, Kalignar and Kasthuri.

     

    These customers use Avid’s Unity Isis shared storage media networks which is focussed on the real-time requirements of broadcast production workflows. The new file system and storage architecture combine to provide industry-leading availability, and dramatically increase storage capacity, bandwidth, and client connectivity.

    In terms of providing technical support and servicing, what does Avid offer its clients?
    We ensure that our business partners are well trained and we are proud that our Indian partner Real Image provides support round the clock through its team of engineers. They are in turn supported by our team of product and workflow experts.

     

    We understand our responsibility to update the technical expertise of the industry. We are, therefore, investing in providing specialised trainings to technical resources available here so that the project implementation is quick and economical.

     

    Support training on equipment requires a huge pile of equipment, and that’s why traditionally we have been imparting technical support training only at our regional headquarters. However, realising the regional need, we are bringing the experts and required kits to the region at high costs in the second quarter of this year. This will help add to the local knowledge and expertise, and in turn improve the support level considerably. This will be an opportunity for customers to train their own team, and keep the equipment and workflow efficient, at a fraction of traditional costs.

    Would you say that cost-effectiveness is an advantage that Avid offers clients vis-?-vis competition?
    Absolutely! All our efforts and products strive to increase our customers’ cost-effectiveness, which in itself is based on broadly on three operating parameters. Our tools and processes are aimed at enhancing the workflows efficiency and to address the rising cost of manpower and facilities. We reduce the operational cost by increasing efficiency of the employees. Today, it is more important how people collaborate than calculate on cost per machine.

     

    At the same time, we minimise the loss in revenues by building resilience and reliability in the system and processes. Furthermore, today it is important for media companies to market their assets in more ways than one. We enable our customers monetise their assets in multiple ways. For example, the film captured for production can be easily re-purposed in TV, mobile, IPTV and net, etc. Sharing the media across states and across nations has become important, and Avid makes this possible and easy.

    The technical departments of channels globally often do not understand fully the technology they have bought and its capabilities. Does Avid face this problem vis-?-vis clients?
    Today, the business has changed considerably. The technical department needs to have a vision and understanding of the business as a whole. Deciding on a product without looking at the full workflow is being shortsighted. Many companies fail to see the big picture.

     

    Yes, we face the challenge wherein the purchases are highly box driven. Judicious customers look at the big picture and visualize, and thereafter make provisions for growth in the very beginning. If you will look around, you will find Avid customers whom we have helped migrate technologically to the latest and are now using their resources for multiple revenue streams. For these companies, growth has been a painless process while others are struggling with incompatible products or obsolete technologies and have to bear the cost of running various parallel operations.

     

    It is important for broadcasters to bear in mind that technology is changing so fast that even experts may lack information. Therefore, we educate companies in current technologies. Selecting a right product is more important for small companies who cannot afford to take a wrong step.

    Insofar as advancements in broadcast technology are concerned, what are the trends noticeable in India and Asia?
    Broadcast has gained a much wider meaning. Trends in India and Asia are no different than the world. There is pressure of quality as well as quantity. In all, it’s a dynamic industry. Broadcasters and people who have the strength to be flexible and dynamic will survive on the technical front.

     

    Traditional broadcast is growing by leaps and bounds. Every broadcast station is now a network of a few channels. We are seeing that international content and participation is increasing. We are also seeing a proliferation of small regional channels.

     

    Sports and entertainment are looking at HDTV. Compression will play an important role here. Avid is the first company to have solutions fully compliant with SMPTE VC3 that allows HD handling at lower rates. News broadcasting will spread to the mobile and internet as well.

     

    Tape will loose further ground with all acquisition and distribution being digital. The post-production houses will be next to use the digital wave.

    As we move towards a digital environment in India and Asia where new platforms like online and mobile will emerge, what are the challenges that broadcasters will face on the technical front?
    Reliability and resilience is the key to all technology requirements for the broadcast industry and this is where the biggest challenge lies. This is mainly because broadcast businesses rely on stories and footage as their asset; so the technology they adopt has to be reliable.

     

    Speed is another criterion that is a challenge as the news industry depends on it. As seen in the World Trade Center bombing, the news channels with modern workflows were faster than the ones with traditional workflows. Sky News and Fox were the first to broadcast the bombing and both use Avid solutions.

    Has Avid signed deals with Indian broadcasters that are launching new channels to create their on-air look, graphics, etc?
    On-air looks and graphics reflect a channel’s personality and business space they are in. It is very individualistic. We provide tools and technology to bring out thoughts and creativity.

     

    However, at the same time we do not recommend any particular on-air look or feel. We have an on-air graphic solution called Deko, which creates on-air graphics in real time.

    What are the new solutions that Avid has recently introduced in India?
    Avid constantly updates its products. Therefore, whenever there is a version change, it is like a new product and we have released new versions in 2007. Our highly expandable storage system Isis and Interplay are recent introductions.

     

    We expect some more products to be announced in the near future. The future is good.

    In terms of the news genre, how do your solutions facilitate the expanding roles of journalists?
    Our newsroom solutions are used by journalists, producers, assignment editors, reporters and presenters for researching, creating, managing and delivering television news programmes. Avid iNews newsroom computer systems give producers and assignment editors control of an entire news production, including gathering and reading wires, e-mail and other messages, organising assignments, writing stories and preparing news programmes.

     

    Another product iNews Instinct is a storytelling tool with scriptwriting, shot selection and video and audio editing specifically designed for journalists.

    HD is an area of intense focus for Avid. How long do you feel it will take for HDTV to come to India?
    Avid offers a complete HD workflow, and in fact is playing a leading role. From ingest, storage to playout, Avid can handle HD in all its forms. HDTV compression will play an important role.

     

    HD has already taken off in a big way outside. However, in India it may take a while. Our expectation is that HD will arrive with sports and general entertainment.

    Could you shed light on Avid’s research and development (R&D) facilities? How much investment goes into this activity?
    Our R&D activities are focused on the development of digital media content-creation tools and workgroup solutions that operate primarily on the Macintosh and Windows platforms. Avid is committed to delivering best-in-class video, film, 3D animation, and audio editing systems to meet the professionals in the television, film, music, broadcast news production, and industrial post-production markets. We have always provided path-breaking technologies and visions, and have patents on a number of technologies.

     

    Our efforts also include networking and storage initiatives to deliver standard-based media transfer and media asset management tools, as well as stand-alone and network-attached media storage systems for workgroups.

     

    Avid spends one of the largest percentages of its income, of any company in the sector, on R&D. For instance, our R&D expenditures for 2006 were $141.4 million.
  • ‘We see GEC as a long-term game. We are playing a Test match and not a T20’ : Indrani Mukerjea – INX Media Pvt Ltd founder-CEO

    ‘We see GEC as a long-term game. We are playing a Test match and not a T20’ : Indrani Mukerjea – INX Media Pvt Ltd founder-CEO

    From starting as a human resource (HR) consulting firm in 1996 to entering the fast-growing broadcasting space, INX Media has travelled a long way.

    INX’s music channel 9XM has notched the top position in its genre while the general entertainment channel (GEC) 9X is making slow but steady strides.

    Next in the roll-out pipeline is NewsX. Despite controversies dogging the news channel venture with the exit of Vir Sanghvi and his senior editorial team, plans are being put in place to launch the channel in March. Regional channels are also part of INX’s growth agenda.

    In an interview with Indiantelevision.com , Mukerjea talks about her company’s growth plans.

    Excerpts:

    INX was a recruitment search consultancy company that you ran successfully for years. What pulled you to the broadcasting space?
    Despite being a human resource consulting firm, INX has been very inclined towards media placements. In the last 10 years, a majority of our placements have been in this sector. Besides, Peter (Mukerjea – husband, chief strategy officer INX Media and former Star India CEO) has 14 years of experience in the television industry.

    But isn’t the mainstream broadcasting space too cluttered?
    More and more channels are launching and doing fairly well. There is clearly a new emerging audience. You have seen how our music channel 9XM has grown ever since its launch. What is happening is that the gap between the number one and number two channels is decreasing. We are even seeing it in the GEC (general entertainment channel) space. The viewer base is also expanding; more and more TV sets are being bought. Moreover, viewership is getting fragmented; different viewers are liking different genres of entertainment.

    Though 9XM has shown rapid growth in the ratings game, it is a channel that runs songs without breaks. What does the revenue front look like?
    I think viewers like to watch full songs. That is why we are getting good ratings. When it comes to revenue, there are Coca-Cola and Vodafone who have joined 9XM as platinum partners. Also, though we have not put in so much of commercials, we still follow the pattern of 12-minute break. We use this duration to show our channel promos. As more ads come in, the same space will be used.

    Isn’t the growth of 9X, your flagship Hindi general entertainment channel, on the slower side?
    If you notice, we started with only two hours of prime-time programming and have added another half an hour in the last fortnight. Only by the end of June, we will be completing our four hours of prime-time programming. And that is the strategic decision we took very consciously.

    We see GEC as a long-term game. We are playing a Test match and not a T20. We want to build this block by block. The critical part is to stay there. It is very important to sustain. So, we have a five-year plan in the horizon to which we are sticking, and this is what I believe is going to make us sustain.

    So you are thinking of breaking even after five years?
    No no, breakeven will be before that. We are talking about long-term plans with short-term goals. And we are executing all our plans; you’ll see it in the coming three months.
    ‘We’re well funded. So it’s easy for us to make long-term plans‘

    But there are other channels like NDTV Imagine that have shown faster growth in a short term?
    We have been funded very well, and that’s why it is very easy for us to plan ahead. When you are backed by strong financers, you can make long-term plans. We don’t have to run and do full-time programming.

    Your programme ‘Mission Ustaad’ failed commercially?
    We did Mission Ustaad as part of our corporate social responsibility (CSR). We were very clear from day one. The priority was also to establish the brand first. Now people know that there is a brand called 9X. You go to any part of the country, and people know about 9X.

    Aren’t you pumping in a huge amount of money for distribution and promotion?
    Absolutely! For us, 9X is an institution and not just a channel. It’s very important to establish a brand, and once that is done, it becomes important to keep the hammer ready. This is what happens when any new channel comes into play: first, it establishes the brand; then it waits for the right moment to strike “big”.

    Also, whoever goes up quickly has a tendency to go down as well. So we are patient. Our investors are long-term players. It’s not that if we pull out a programme, things will crash. We have not launched a channel based on one programme.

    And now, as we’ve established ourselves, I think we need at least another five months to bring in full programming. Strategically, it’s like a baby in my mind: a baby takes shape in nine months and we feed it when it’s born.

    On the ratings front, only one show has TRP of over one. Besides, isn’t it true that the channel’s GRPs are mainly being driven by movies?
    No, the report which we’ve got from Tam shows that 32 per cent of our GRPs are from movies while 54 per cent are from serials and 14 per cent from other shows. At the end of the day, when you are planning a channel, you have to think about overall GRPs, and we have taken a conscious decision not to bombard viewers. Now we have Chak De Bacche, Yeh Hai Jalwa and other programmes lined up. We are also having some serials which we will announce in due course.

    As a syndication deal, have you paid Sony Rs 400 million for 60 movies?
    That’s absolutely wrong information. The actual amount is not even half of it.

    What do you think about syndication of movies as a business model?
    It is a very good decision because at the end of the day the viewer is entertained and we, as a result, stand to gain. For example, with Jab We Met, we got fabulous advertisers, ratings. If I am calling it a family channel, I will have to provide content for the entire family.

    Mythologies seem to be coming back on Indian television. Is Ekta Kapoor doing Mahabharata for you?
    No, Ekta is not doing Mahabharata for us. I have also heard it, but Ekta and I have not spoken about making Mahabharata.
    But what do you have to say about the invasion of mythos?
    Mythological content has always been a part of Indian television. Be it Sai Baba, Sri Ganesh, Jai Maa Durga, Jai Hanuman – they have always been there. But it’s important for a channel not to overuse such content. You have to have a combination of movies, serials, soaps, fantasy, reality, etc. A good mix is essential.

    When are you launching NewsX?
    Our test signals are already on, and we have roped in Karan Thapar’s firm Infotainment Television (ITV) as editorial advisor to the channel while Arup Ghosh is our newsroom head. We will hopefully launch the news channel sometime in March; I can’t specify the date, but it will be in March.

    What content will the channel focus on?
    It will be analytical, in-depth news.

    How will it be different?
    You have to watch it to notice the difference. Our main studio is in Delhi; our Mumbai studio is under construction and is almost done.

    Are we going to see more channel launches from INX Media in 2008?
    The first priority is to complete the schedule and get NewsX up and running. We will also be launching regional channels.
  • ‘Paanchvi Paas will be telecast in the UK and US’ : Akash Sharma – Bulldog Media & Entertainment MD

    ‘Paanchvi Paas will be telecast in the UK and US’ : Akash Sharma – Bulldog Media & Entertainment MD

    Akash Sharma has been at the forefront of acquiring, developing and launching high-quality prime-time hit shows in India since 2005.

     

    An economics graduate from the University of Michigan, Ann Arbor, USA, Sharma spearheaded Bulldog Media & Entertainment’s efforts to be awarded the Indian licence to the international format of 2007 “Are You Smarter than a 5th Grader?” from Mark Burnett Productions. He is currently serving as an executive producer to the Indian version of “5th Grader” on Star Plus hosted by Shah Rukh Khan. Interestingly, Sharma shares his birthday (2 November) with SRK and likes to refer to this as a coincidence indicative of their similar destiny.

     

    In an interview with Jaahnavi P Paal, Bulldog Media & Entertainment MD Sharma reveals all about “Kya Aap Paanchvi Pass Se Tez Hain?,” the company’s future plans and lots more.

     

    Excerpts:

    Who are the stakeholders in Bulldog Entertainment? What are the core areas that the company is concentrating into?
    We are a new-age company which is just a year old. We have Ramit Bharti Mittal (from the promoter family of Bharti Enterprises Ltd) as a shareholder. We understand the business and the management side of it as well. Right now, we are into providing television content. We look across the globe for mature television content that would work for Indian audiences. For us as content providers, it is boom time as with the onslaught of new channels it has opened up a new client base. We just delivered our first big show – Kya Aap Paanchvi Pass Se Tez Hain?

    ‘Are You Smarter Than a Fifth Grader’ is a format owned by Mark Burnett. How did you acquire the format of the show?
    The Mittals are very active in the media space. Both Mittal and I went to USA and told them our story. We told them how content is saturated in India and how we were looking at innovative content. We wanted to shake up the apple cart, too, as the saas bahu shows were going on and on. We told them we would be able to drop the hammer on the Indian market and that too with a bang. We did not leave Los Angeles and kept talking to all top broadcasters. It was in 2007 when we were invited to the Natpe conference. We were the only Indian company who got to see the presentation of Are You Smarter Than a Fifth Grader by Mark Burnett. We saw the show and played it without knowing what it really was. But what’s interesting is that at the presentation they played the game with us and Ramit who volunteered to be part of it got his question wrong (“Which is the longest river in Asia?”)

    Do you think the format is suitable for the Indian market?
    India has become so global. Whether it is domestic or international content, right now the focus is to get quality content. If there is a show and it’s successful, then it’s a proven formula and a less calculated risk. Getting licenced content is a safer bet. Viewers need quality programmes and this is our focus. In Paanchvi Pass, we will broadcast it in a handful of territories outside India.

     

    The show is being produced by Synergy and Bulldog. Out of the 50+ territories in the world, we knew that it was most relevant in India because we focus on education more than anywhere else. Right from the start, we knew that it was an SRK, Star plus show, and hence we did not go anywhere else.

     

    In India, it will go on air when kids go on vacation. And will go on at least for a year. But what’s interesting to share is the fact that Paanchvi Paas will be telecast in the UK and USA for the NRI audience. We are in talks with representatives from New Zealand, Canada, Indonesia and Australia so that Indians across the globe can watch it.

     

    We are also launching a licencing and merchandising division with Star Plus where we will promote toys, games and apparel during Paanchvi Paas.

    How would ‘Paanchvi Pass’ be different from KBC?
    KBC has been around since 2000. It’s been completely put out to the public. First Big B was the host; then came SRK. It’s not the host but the format that has run its course. There were gaps which happened over eight years. KBC is a general knowledge, trivia game show. Paanchvi Pass is a different quizzing concept than KBC. You have kids as life lines, grade school-level questions and all demographics coming to watch the show. The show has in-built drama, comedy and education. I think Star was looking at something fresh to redefine their programming. With our vision and their platform, we have a great partnership.

    How does the deal that you have recently inked with CBS Paramount for the show ‘America’s Next Top Model’ look like?
    It’s a little early for us to talk about this. In January, we launched the show in China. It was one of the few shows to be licenced there. Its all about glamour but outside the usual singing-dancing reality shows we have been seeing. It allows an average, normal person who is interested in modelling to be part of the show. We have recently acquired India rights for America’s Next Top Model. We had been after CBS since the past one and half years. Hosted by Tyra Banks, the show is in its tenth season in the US. It’s the No 1 show on Foxtel in Australia. It is in its fourth season in the UK. We are in initial talks with broadcasters in India. We are only looking at top general entertainment channels (GEC) as this is a big-ticket show. America’s Next Top Model is a brand and there should be a fit between the channel and the brand. This one is a franchise and each territory globally will be renewed season after season, and so we’re looking at a channel which will be a good fit.

     

    We are also looking at casting A-list model-cum-actors to host the show.

    How is the format of the ‘America’s Next Top Model’ different from so many other shows currently running in almost all Hindi GECs?
    In order for a format to be successful, it has to have the local masala. We do look to bring the framework and then localise it a little. We will Indianise the show after talking to broadcasters. Bulldog will give the framework and the production house will then add the masala. But we will protect the brand. We have shortlisted production houses who can effectively produce it. This decision will be jointly taken by us and the broadcaster. The show will have your next-door neighbour girl who aspires to be a model. The hunt for her will be on a national level. The show will begin with about 35 wannabe models out of which 15-17 girls will be shortlisted and put in a house. They will then be trained on all aspects of modelling. After which one of them will be eliminated every week. The viewer gets to see the transition of the girls to super models. The viewers will be able to relate to the struggles and challenges that the models brave. There will be a panel celeb judges representing all walks of life.
    ‘In the long run, we do want to get our hands dirty in production. We’re seeing fragmentation in TV channels’

    How big would be the prize money for the show?
    In the US, it has a complete package of a cash component, one year’s contract with a top modelling agency, a car, a film contract and a few additional perks. In India, too, we may offer something similar. The girls also get to travel for international shoots for a fortnight during the show.

    What are the other shows that are in the pipeline?
    We have just acquired a fiction show, Nuevo Rico Nuevo Pobre (“New Rich, New Poor”) from Canal Caracol TV who is the top broadcaster in Colombia. This is a very exciting deal for us as it marks our foray into the fiction space. It will set a precedent in the licencing of fiction content.

    This concept has been sold to Fox in USA and now we have the rights in India. It will be a heavily promoted show for them, and is scheduled to be launched this fall on prime time.

    What are the future plans for your company?
    In the long run, we do want to get our hands dirty in production. We’re seeing fragmentation in TV channels. This is a boon for us as this helps channels cut through the clutter. It opens up new opportunities for us so that we can change their programming. Viewers want quality now because of the clutter. And this will be our main focus.