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Category: Ficci Frames

  • Skewed biz model hampers electronic news media functioning

    Skewed biz model hampers electronic news media functioning

    MUMBAI: The electronic news industry is struggling against a business model of low subscription income, high carriage fees and commoditised content, experts said.

    “We are currently operating on a broken business model where subscription revenues are low and, thus, one has to depend heavily on advertising for revenues. The process of digitisation has started improving the scenario but we do have a long way to go,” said NDTV Ltd group CEO Vikram Chandra.

    Another challenge is that journalists as a breed are only just starting to adapt to new media. While there has been commoditisation of news, one must also realise that as technology is evolving journalists too need to upgrade. Instead of shirking or challenging new media, journalists can adopt means of using it to monetise news.

    Essel Group News Cluster Group CEO Dr Bhaskar Das said, “The goal should be to maintain objectivity of the news across platforms. We must remember that the consumer has become increasingly platform agnostic in news reception.”

    The silo mentality in the journalistic community is also a challenege that needs to be overcome. In an age where the consumer uses multiple forms of media, often simultaneously, journalists cannot afford to limit themselves to just one medium. They need to evolve and learn to be present and visible across mediums.

    “This is the reason why in our channels, we have made it mandatory for our reporters and journalists to be present across platforms and maintain blogs and Twitter accounts,” said Russia Today TV managing editor Prof Alexey Nikolov, while speaking at Ficci Frames.

    The session titled ‘Electronic News Media: Stock Taking and the Way Forward‘ discussed the challenges involved in running a news channel and explored ways to overcome these. The panel discussion was moderated by senior visiting fellow, national university of Singapore and author Dr Nalin Mehta.

    India News Editor-in-Chief Deepak Chaurasia threw light on the political arm-twisting that prevails and prevents news channels from reporting certain news. Another impediment faced by news channels is the monetary pressure applied by various multi-system operators (MSOs).

    “At the end of it, we are responsible for our own predicament. Many people with deep pockets have started news channels and have increased the carriage fees, which has affected all the other channels. There are no definite rules and this gives people with vested interests a chance to take advantage and pressurise channels,” he said.

    Nikolov also stressed that while social media has taken the front seat, the audience is now looking for credibility. So the trick now would be to sell trust, competency and different points of view rather than only news.

    Chandra added that in this case, trust can be built according to the niche that each channel wants to occupy. It depends on the ideology and the business model. In a country of India’s size and population, channels will find their own comfort zone and survive.

    On the topic of trust, Das said: “Trust is non-negotiable. What is worrisome is that trust has become subjective. Whose trust are we vying for today (as news channels)? Is it the viewers’ trust or the management’s trusts or the politicians’ trust or the advertisers’ trust? It is the audience’s trust that matters and today’s viewers are intelligent and astute enough to understand where the value of news lies. They can differentiate the trust worthy from that which is not and that’s why some news channels work, while others fail to attract the masses.”

    The silver lining, however, is that for the past one year the news channels, the government and other industry stakeholders have come together to discuss these matters. “It is a beginning. At least now we all agree that there is a shortcoming in the audience measurement system and process in the country. On the content side, there have been suggestions about framing a content code. In this case, the matter is too subjective and to reach a consensus is very difficult,” averred Chandra.

    The panel concluded that the need of the hour is to revamp the business model so that it is not heavily skewed towards one means of revenue, in this case advertising. Once that is resolved, the channels can take a stronger stand on content regulation.

    “The problems are complex and the fear of government interference plays a big role too. We have made a start and need to keep going as it is a long road ahead,” Das concluded.

  • India needs to build a second sport

    India needs to build a second sport

    MUMBAI: In a single sport country like India, it is important for all the stakeholders in sports industry to come together and build other sports besides cricket through a right model and create an ecosystem that works for everyone in the value chain – federations, broadcasters and fans.

    That, the experts believe, will reduce the dependency of sports broadcasters on cricket, which is becoming financially unviable due to steep rise in acquisition of properties
    Television is one of the most important components of popularising sports. It is broadcast rights fee that helps sporting bodies world over to fund the development of sports – whether it be creating infrastructure, developing talent or attracting talent.

    World Sport Group South Asia CEO Venu Nair believes the right model for any sports federation in India is to grow their sport by reaching out to as many people as possible. He also cautioned sports federations against blindly following the Indian Premier League (IPL) model.

    "Every other day you see an IPL-styled league with a new logo pasted on it. IPL became the success that it is because there was a thriving ecosystem in place before it launched. Other sports won‘t taste success by just emulating the IPL model," Nair said, while speaking at Ficci-Frames 2013.

    His suggestion to federations: Forge strategic partnerships with broadcasters where both rights owner and rights holder are equitable partners. He also suggested that the role of a public broadcaster should not be undermined in popularising a sport.

    "A sport like Football can become popular if it works with a public broadcaster. That will help a sport to be sampled by more people and then make it a habit for viewers to watch that sport," he averred.

    The credit for making cricket a huge success on television goes to Doordarshan, feels Nair.

    "There were lots of triggers that made Cricket popular. One of those was Doordarshan. People started following the sport because of Doordarshan. It played a large part in driving traction for cricket," said Nair during a panel discussion on ‘Sports: Economic viability and the crisis within‘.

    Cricket commentator Harsha Bhogle, who was moderating the session, pointed out how BSkyB built EPL into a powerhouse in UK.

    All India Football Federation (AIFF) General Secretary Kushal Das feels the quality of Indian football has to be on par with international football.

    "The problem with Indian football is not so much cricket as it is football itself. Today, football fans have access to the best of Football leagues whether it is EPL, La Liga or Bundesliga. When you compare Indian football with these top leagues, we don‘t match up," Das said.
     
    Indian football, he feels, suffers a double whammy of almost non-existent infrastructure and lack of talented players. Unless these issues are dealt with, Indian football will continue to suffer.

    Das said a partnership between a pubcaster and federation will only work if both the partners work in tandem towards the same goal. In the Indian context, he said the bad quality of production and commentary on DD can put off viewers who are exposed to international quality football.

    Another critical factor hampering the growth of non-cricket sports is the lack of clarity on scheduling. An annual calendar that lays down the schedule is important, not just from broadcasters point of view but also for a fan.

    Indian Football, in particular, suffers from scheduling problem that has been giving nightmares to AIFF‘s broadcast partner Ten Action+.

    Addressability & price cap de-regulation

    Sports broadcasters at the session batted for de-regulation of price cap on cricket which hasn‘t changed much since 2003 while the cost of cricket rights have gone North in the subsequent years. Cost is a structural issue which can only be addressed by ramping up subscription revenues.

    Star India Head of Sports Nitin Kureja said the government has to relax price regulation and let the market forces decide the price. "The revenue side has been a huge challenge. In fact, it has been a challenge to exploit all revenue streams. While the cost of cricket rights have gone up, the subscription revenue has not kept pace," Kukreja stated.

    "Regulation should have differential treatment for different sports," he added. Star India had bagged the BCCI media rights for Rs 38.51 billion till 2018.

    Neo Sports Broadcast COO Prasanna Krishnan opined that addressability was a bigger issue than price cap.

    "You can charge 1,000 rupees but if you don‘t know how many subscribers you have, it won‘t make much of a difference. So in my opinion, addressability is a bigger issue. Digitisation in that sense will be a game changer," Krishnan contended.

    He also felt that the mandatory sharing of feeds with the pubcaster has robbed the broadcasters of exclusivity. Pilferage of signals only worsens the situation for a sports broadcaster who has committed millions of dollars.

    "The public broadcaster in our country is too cricket-centric. That has to change if the intention is to air events of national importance. Why doesn‘t public broadcaster telecast I-League?," Krishnan questioned.

    He said the pubcaster is choosing events that are commercially viable.

    WSG‘s Nair, however, put the blame squarely on broadcasters for the broadcast rights going through the roof. "I am sure the broadcasters themselves know that they won‘t be able to recoup their investments when they bid for cricket rights. That is something that we should address. There are certain rights that have some value," he said.

    Concurring with Krishnan‘s view, IPL CEO Sundar Raman said sports broadcasting is driven by subscription income globally unlike India which is dependent on ad revenue that keeps fluctuating depending on seasons.

    "When you are dependent on ad revenue to recover your investments, you are at the mercy of media agencies. Across the globe, sports is driven by subscription. The amount of money that broadcasters get in India as subscription revenue is pittance," Raman explained.

    Raman said the addressability of audience is the single biggest challenge for the sports industry.

    Apart from addressability, the key to growing sports is to market it well, micro-targetting audience by going regional and exploiting other revenue streams, said Raman.

    On marketing front, Raman said the Hockey India League (HIL) did a good job which sports bodies can emulate. The marketing will help build a habit of strong viewing among viewers.

    Commentary, he said, is also an important aspect of growing a sport that will help viewers to understand sport better. Broadcasters, he said, should approach different markets by launching regional feeds that will build an instant connect.

    "The problem is we tend to treat India as one big mass. There is a big opportunity in regional markets. We should have regional feeds with commentary in regional language," Raman said.

    He further stated that rights holders should start exploiting other revenue streams like digital media which will increase the reach of the event. "Consumption of sports on digital medium is increasing, we should tap into this segment but broadcasters are focusing on internet fearing loss of viewers."

  • Sony to buys out private equity firm’s residual 6% stake in MSM

    Sony to buys out private equity firm’s residual 6% stake in MSM

    MUMBAI: Sony Pictures Television (SPT) will buy out private equity firm Capital International‘s six per cent stake in Multi Screen Media (formerly known as Sony Entertainment Television India) to take full ownership of the Indian broadcasting company which is on a growth path.

    Earlier, SPT had bought out 32 per cent stake of the Indian shareholders in Multi Screen Media (MSM) for $271 million, taking its shareholding to 94 per cent.

    "We are going to buy out the six per cent stake of Capital International in MSM. We hope to do it by the end of this year," Sony Pictures Television president Worldwide Networks Andy Kaplan tells Indiantelevision.com.

    Kaplan, however, ruled out a public listing of the company.
    In 2000, Capital International had picked up eight per cent stake for $200 million.

    Sony‘s aggressive growth plans in India include the acquisition of regional broadcaster Maa Television Network. "We are working on it. It is a bit complicated. The acquisition will give us a foothold in the Telugu market," avers Kaplan.

    In 2012, SPT entered into a strategic alliance with Hyderabad-based Maa Television Network to acquire a 30 per cent stake. Maa TV Network operates four Telugu-language channels.

    Sony will also eye other regional acquisition opportunities in India. "We are looking at building on our own and acquiring companies. We are weighing both the options. We are looking at each region and trying to figure out what the best strategy is," Kaplan says.

    In 2009, SPT acquired Bengali channel, Channel 8.

    MSM‘s other new growth pillar would be its sports broadcasting business. The company launched Six, a sports entertainment channel, last year. It has the Indian Premier League (IPL), cricket‘s most lucrative property, as its driver content.

    “We are also looking at other sports in which the audience interest will grow. We have the NBA rights and UFC, among others. We will be aggressive for the right property if we feel that it will be a good fit for our channel. But we will not overbid,” says Kaplan.
    In terms of rights, he said that both cricket and movie acquisition costs from an industry perspective are on the higher side. “We try to be aggressive but disciplined at the same time. India is the only market where we are in the sports genre. So it is unique for us in that sense."

    Kaplan admits that India is a big international market for Sony. "As a TV market, India has been friendly towards outsiders," he says.

  • Indian M&E sector needs to look beyond cricket and Bollywood: Dominic Proctor

    Indian M&E sector needs to look beyond cricket and Bollywood: Dominic Proctor

    MUMBAI: GroupM Global president Dominic Proctor believes that the Indian media & entertainment industry should move away from the fragile ecosystem where Bollywood, cricket and a handful of national icons and stars are used for all messaging if it has to develop a globally recognised base.

    “This must change if India is really serious about building a world class sports and entertainment industry,” Proctor said at Ficci Frames 2013.

    In what would be a food for thought for media agencies and advertisers alike, Proctor said the country needs to look beyond cricket and start investing in non-cricketing sports and the signs for their success are very encouraging.

    Recent initiatives in F1, Hockey, Combat sports and Badminton are encouraging but not enough, he added.

    "In India the content is excessively and obsessively dependent on Bollywood, cricket and stars. This is a wake up call where in order to grow in the global space, the industry here needs to look beyond Bollywood and cricket," he noted.

    He observed that the popularity of cricket in all its formats – Test, ODI and T-20 – is declining at a global stage. The dwindling performance of the biggest sport in the country is posing a threat to the business surrounding it, to the companies and brands which have invested on it.

    Sports marketing in India will require to have much broader base than just cricket. People need to look at other sports too, like the other parts of the world. Sole focus on cricket as a means to advertise and reach the target audience gives it a monopolistic edge, which has lead to over crowding in the space and over pricing of the properties.

    While Bollywood and the Indian film industry is an all pervading influence, brands in India do not leverage this platform optimally. Revenue streams exist in content advertising on multimedia screens & producers and studios should look beyond theatrical returns & innovate new platforms and formats.

    Simultaneously, creators should extract total economic value for the content with consumer centric audience planning. With a nod to Web driven content, Proctor said that digital formats will drive advertising revenue growth in under branded India and also help the Indian media and entertainment industry reach out globally.

    Talking about Bollywood, Proctor feels that brands need to find new ways to exploit movies for the benefit of the market. Web is a big opportunity too. Now the audience is exposed to the multiple media screens and one can target, monetise and measure the medium. In fact, this is a better medium of targeting consumers. "Advertising in print costs around six times more than that on web to reach out to the same consumer. And web is a better engaging medium."

    The big shift, according to Proctor, is from distribution to content, from inventory planning to audience planning. "The need is to optimise inventory by serving different ads to different consumers. So, optimising spend and minimising wastages (is required)."

    Proctor pointed out the key challenges that Indian M&E industry is facing today. They are optimising the potential of the Web which poses a huge opportunity for the industry; foundation of a world-class content industry; need to look beyond Bollywood and cricket and tap into the emerging platforms to help extract right advertising value. "As global economy slows, the opportunity is for India and Asia more broadly to lead, and then the others will follow. India can be a support to world‘s media ecosystem like the U.S was," he added.

    The media agencies in India need to invest more in digital. "Digital business here is just 5 per cent of the total pie and as compared to the other markets where the spend on digital is around 30 per cent, it is relatively small. So, the agencies here need to invest in the medium, the people who know about the medium, and rope in that kind of talent. The medium will grow and the focus on these will drive digital medium‘s growth in India."

    Also, the media agency business here needs to diversify. "Clients want much more advice on sports marketing, mobile marketing, return of investments (RoIs). The media agencies should diversify in order to cater to them effectively," Proctor concluded.

  • Monetisation of content in a digitised market

    Monetisation of content in a digitised market

    MUMBAI: With broadcasters upping investments on content and marketing, monetisation from multiple streams becomes crucial in a digitised market.

    Multi Screen Media President Ad Sales Rohit Gupta feels the key in a digital market will be to create customised content that suits the need of a specific demographic and market.

    The addition of LC1 markets to TAM panel will increase their weightage vis-a-vis the four metros. It will also force broadcasters to rethink their content strategy towards these markets.

    “Digitisation is key challenge for broadcasters. Monetisation of content is key. With addition of LC1 markets, their weightage has gone up. Creating different content for different type of audiences will be the key,” Gupta said during a panel discussion on ‘Revisiting Content in Digitised Space and Impact of Ratings in the Changed Scenario’.

    Gupta said television as a medium has seen phenomenal growth to become the biggest medium but it remains under-indexed when it comes to ad spends.

    “We are adding 15 million consumers every year but we are still under-indexed vis-a-vis advertising revenue growth. Broadcasters are not getting the benefits of additional eyeballs,” he added.

    Gupta said it’s high time that the industry works together to create a new television measurement system. A new system is in the interest of both broadcasters as well as media gencies.

    Disney UTV Media Networks CEO MK Anand said the ad revenue led business is here to stay. It will co-exist with subscription driven business model.

    “The advertising revenue led model is here to stay. Ratings are not anti-thetical to the broadcast business. Digital Addressable System (DAS) will lead to two kind of broadcasters – one who are subscription led and the ones who are advertising revenue led,” he said.

    According to Anand, broadcasters irrespective of the genre have to work hard in a digitised market. The packages that MSOs design will also be of paramount importance.

    Time spent in digital homes has increased due to bucketing of content genre-wise, he added.

    IndiaCast Group COO Gaurav Gandhi said digitisation will change three things: it will change economics, choice of services and accountability and measurement.

    “The cost of content has gone up considerably, it‘s on par with international markets. But the revenue growth is not sufficient,” Gandhi said.

    Broadcasters will also have to look at other revenue models apart from advertising and subscription to monetise their content.

    Natpe President and CEO Rod H Perta said the problem of inadequate measurement system and fragmentation of market is not unique to India. US too has gone through the same path.

    Digitisation, he said, will lead to emergence of new business models and opportunities. The question is whether broadcasters are ready for this change, he asked.

    He said ratings are an equally “contentious” issue in US but the market over there has matured and advertisers now don’t just look at ratings while making advertising decision.

    “In fragmented markets, advertisers don‘t just look at ratings. They also look at the quality of content,” Perta contended.

    TAM India CEO LV Krishnan said the issue of reliability of data comes only when the ratings starts falling. Broadcasters, he said, don’t complain when the numbers are in their favour.

    He said viewership measurement in multiple-screen era will go from platform-centric to becoming platform-agnostic.

    “It doesn’t matter which platform the content is consumed. Parameters will change as content consumption will happen on different platforms,” Krishnan said.

    Fremantle Asia MD Paul O Hanlon said, “We have to rethink the way we produce content which made us look at different formats in different ways and segment it to make it flexible for broadcasters.

    “The cost of content is going up, so we have to rethink the business model. We are looking at different ways to monetise content like AFP and not just remain dependent on broadcast fee.”

  • Revenues for content providers are coming from more places now: Kaplan

    Revenues for content providers are coming from more places now: Kaplan

    MUMBAI: Content providers have a wide array of opportunities to tap revenues from as multiple screens emerge and compete, particularly in the advanced markets.

    "Revenues are coming from more places. More windows are opening, ensuring that there are more hours of content to sell," said Sony Pictures Television Worldwide Networks Andrew J Kaplan.

    The marketplace is becoming more complex and secondary revenue streams (Netflix and Hulu) are emerging stronger. "This means that there is a bit of a challenge on the infrastructure side. We need to be experts and understand the businesses of different distribution systems. It is a much more complicated world now. There is chaos and, hence, an opportunity," Kaplan said, while speaking at Ficci Frames 2013.

    In terms of genres, Kaplan noted that while American drama travels well globally, comedy does not — especially in non English speaking markets. “Some comedy shows that work overseas rely on physical humour. In India, we have Sab which has done well.”
    In terms of SPT channels globally, Kaplan noted that Sony offers American shows. “We buy from our own studio and other studios as well. The aim is to maximise the audience and ratings. As the reach of our channels have grown, we have become a more important buyer globally.”

    Kaplan also spoke about the action oriented channel AXN, saying that the challenge is to balance global with local content. “AXN is different in Thailand and Portugal. That is partly because certain rights are available in certain markets and also because audience tastes are different. Not everything will work equally well everywhere. We also have local shows because that drives in higher ratings. People like to look in the mirror and their want to see their neighbourhood.”

    He spoke about global co-productions ‘The Firm’, ‘Hannibal’ and ‘Crossing lines that SPT is engaged in. “The aim is to get a different creative input so that the content is more applicable to our networks."

    One challenge for a channel like AXN is to retain a uniform character for it globally. What it makes it tough is that there is no flagship channel for Sony in the US. “So we create channels on a market-to-market basis using a lot of research. While we balance global content with local shows, there has to be sanctity in terms of what the brand represents. Our local management teams are passionate about their markets. We have a lot of discussion about what will work the best. Usually we get right. Sometimes we stray. Then we have to pull things back in line,” said Kaplan.

    He also spoke about new media saying that Crackle, Sony‘s online platform in the US, relies on advertising as opposed to other platforms like Hulu which are subscription driven. “I am still trying to figure out if we are smart or stupid in relying on advertising. The advertiser’s response has been solid. We target males 18-49 which is a hard demographic to reach. What helps us is that advertisers want to be in the digital space.”

    The aim of Crackle is to supplement traditional television viewing and not cannibalise it. "Crackle launched in Latin America last year. That is because broadband penetration there is high. Also SPT has a strong ad sales team there. The next phase of evolution for Crackle is creating local content, which it is doing more of. Netflix is also doing this. The advantage of local content is that we can do product and environment integration with advertisers,” Kaplan said.

  • App monetisation remains a challenge

    App monetisation remains a challenge

    MUMBAI: App monetisation remains a challenge in India, experts at Ficci Frames 2013 said here today, while outlining factors that could trigger growth in the sector.

    An important change is the explosion of connected devices which could transform India from being the largest consumer market for apps to also one of the largest revenue generators.

    “What will help the app market is the fact that phones are getting cheaper and the technology is getting better. Mobile will be a game changer from a data perspective,” said DisneyUTV MD Digital Vishal Gondal.

    With advertising being the main business model, monestisation is a challenge. There is also the issue of operators taking away 70 per cent of revenue. "Vodafone changed this by taking only 30 per cent and giving the rest to the app developer," Gondal stated.

    Oovoo.com CEO Jay Alan Samit feels that voice calls will go the way of the fax machine and become extinct. "People today prefer sending text messages. If it is somebody they love and care about, then they will use video," he said.

    Samit also noted that apps are viral and can come from anywhere. Angry Birds, for instance, comes from Finland. "Also celebrities will use apps if they connect people. This was seen during the Oscar awards where stars like Hugh Jackman used apps to reach out to fans," he averred.

    India has a base of 2.5 million app developers. "This gives us strength. Our plan is to ensure that an app is present regardless of whether a user has a smartphone or a feature phone," said Nokia India marketing director Viral Oza.

    But what are the challenges the app market faces in India? The absence of a venture funding system for apps is surely one major deterrent. The other challenge is that innovations in the user interface are not happening outside of the US, Samit said.

    The fact is that many users discard an app after using them just once. Oza touched on the importance of app quality. Nokia, for instance, has a filtering system before an app is put on the Nokia Store. "About 50 per cent of apps downloaded in India are from a Nokia store. This shows that apps have quality as well as stickiness,” he said.

  • Industry needs to come together to put all systems in place for Phase 2: Parameswaran

    Industry needs to come together to put all systems in place for Phase 2: Parameswaran

    MUMBAI: The multi system operators (MSOs) might have successfully installed set top boxes (STBs) in majority of homes in phase 1 of digitisation but the government feels that is just one aspect of the drive and other aspects like subscriber management system (SMS) and billing system need to be put in place if the real benefits of digitisation have to be realised.

    The Telecom Regulatory Authority of India (Trai) wants the industry to set things right for Phase 2 of cable TV digitisation. Trai consultant N Parameswaran said Tuesday that the stakeholders need to work towards having all the systems in place in order to implement digitisation in letter and spirit.

    “Digitisation has not happened in a manner that we wanted to. It’s not a regulatory issue. The industry has to come together and ensure that that all the systems are in place from day one for phase 2,” he said.

    According to Parameswaran, the real benefits of digitisation have not reached people. "The subscriber management system is not in place. What has happened is only set top boxes have been installed,” Parameswaran said, while taking part in a panel discussion on digitisation at Ficci Frames 2013.

    Parameswaran said that the Trai had recently issued notices to MSOs and LCOs (Local Cable Operators) to make their SMS operational in DAS areas to ensure things fall in place.

    While commending the industry for achieving digitisation in a short span of time, Den Networks CMD Sameer Manchanda assured that the SMS and billing system will fall in place in 60 days.

    “We should have all things in place in 60 days. Putting eight million STBs was a herculean task. Digitisation has taken years in other countries,” Manchanda said.

    IndiaCast Group CEO Anuj Gandhi said the ARPUs (Average Revenue Per User) will increase gradually. The key is to segment existing channels and create packages accordingly. A case in point, Gandhi said, was having a South Indian channel package for Mumbai.

    Gandhi urged the industry to take one step at a time. The immediate priority, he said, was to get back-end systems in place. “For broadcasters, it’s a scary thought that the customers are getting more channels for the same price,” averred Gandhi.

    According to Multi Screen Media (MSM) CEO Man Jit Singh, government should continue to play the facilitators role like it did in the first phase. He also said that STBs have installed, subscribers are getting digital signals but little has changed apart from that.

    “What we have shown in first phase is that we came together as an industry to implement digitisation. The government also has a critical role to play. It should continue to play the facilitators role to bring together different stakeholders in the industry,” Singh said.

    He added, “Tiering and ARPU is incremental to drive the market together by understanding the consumer needs and expectations. The burden of expansion has to be shared by the Local Cable Operator (LCO), Multi System Operator (MSO), broadcaster and the consumer.”

    IBM Global Business Services India/SA Director & Partner, Industry Leader – Media & Entertainment Raman Kalra said that it is important for the industry to keep parallel strategy in place as the business model is evolving continuously.

    “Consumer is willing to pay but the industry should know how to extract it. The key is to know your customers to facilitate micro-segmentation and then work on the content strategy accordingly,” Kalra said.

    Reliance Broadcast Network Limited (RBNL) CEO Tarun Katial said the advent of digitisation has made things easier for new channels as the carriage and placement is not a big problem anymore.

    He also said that the availability of more channels has meant that consumers are sampling more channels which is good for niche channels. He also felt that dynamics will change as advertisers will now have to shell out more for advertising on television as subscription revenues go up and advertising duration is cut down.

    Times Television Network (TTN) MD & CEO Sunil Lulla said, “The current economics are not adequate for the success of Phase 2 of digitisation. There is an urgent need for industry transformation and an effective change in consumer experience. We are sitting at the cusp of change where widespread and deep digitisation will happen on the back of consumers, regulators and government working together.”

  • Building the ecosystem for engaging 1 billion consumers

    Building the ecosystem for engaging 1 billion consumers

    MUMBAI: Creativity, technology and right regulation will set the tone for engaging a billion consumers in India‘s changing media and entertainment landscape.

    Television broadcasters need to imbibe an important mindset change as they address diverse audiences. Says Zee Entertainment Enterprises Ltd (Zeel) MD and CEO Punit Goenka, "The industry has only just begun to take baby steps in the creation of content for a diverse audience and has a long way to go. Fragmentation of audience is the order of the day. It is time we stop seeing ourselves as broadcasters and instead consider ourselves as content creators and aggregators.”

    Even print publishers, under threat in the matured markets from digital media, will have to sharpen their connect with audiences. Says Bennett & Coleman, CEO publishing Ravi Dhariwal, "The trick is to recognise and capture small audiences and then retain and nurture them. For this, we have a creative team that has the full freedom to experiment and come up with engaging ideas and a marketing team that understands the consumers and acts as the bridge between the creative team and the target audience. What is really crucial is the sync between the marketing team and the creative minds.”

    Others participating at Ficci Frames in a session on "How to engage a billion consumers in the media and entertainment landscape" were Disney UTV MD Studios Siddharth Roy Kapur, Viacom 18 Media group CEO Sudhanshu Vats, Discovery Networks Asia-Pacific senior VP and GM India Rahul Johri and Twitter Inc head of global operations Shailesh Rao. The session was moderated by Star India CEO Uday Shankar.

    The panel discussed and debated on how a balance among the three three pillars of creativity, technology and regulation could lead to an effective mechanism for capitalizing on the one billion population plus of the country. The panel also discussed on the emergence of new media as a means of providing a thrust to the M&E industry in terms of reach and effectiveness. Everyone agreed though that reaching a billion consumers is a double edged sword that presents a challenge as well as an opportunity.

    The discussion also touched upon the fact that India is a diverse country with various nuances to its cultural, social and economic fabric. Is the media and entertainment industry of the country ready to cater to an audience so diverse in its constitution?

    Vats optimistically said, “The key to sustaining in such a diverse environment is to sharply segment the audience and target it. We are already doing so in many of our practices, but we need to do it more and more in the days to come.”

    Vats and Goenka, however, agreed that the mega consumer trend is fast catching on. We now see the evolution of the ‘I’ consumer that demands customised content to better suit his individuality as opposed to the ‘We’ consumer who is satisfied with mass content. The presence of multiple screens – whether it is more than one television set at home, or one person accessing multimedia like tablets, laptops, smartphones etc. – is here to stay. This, in fact, will provide opportunity to reach more consumers and customise content accordingly.

    Roy Kapoor stressed on the fact that in case of movies, it is the creativity that has managed to increase the reach of the cinema. He cited the example of the nineties when pan India hits had become rarer by the day owing to the fact that regional audiences ceased to relate to the movies anymore. With the advent of digitsation of movies at the turn of the century, parallel movies and hardcore commercial cinema have begun to co-exist and, in fact, be accessed by the same consumer.

    “In my view, the challenege as far as cinema is concerned is the infrastructure, or the lack of it. We are a country that has a very low screen density and this hampers the reach to a large extent,” he said. In his opinion, the trick is to expand the footprint and grow as an industry. He suggested three ways to do so – ensure content syndication on theatrical and non theatrical platforms, use the smaller screen to get content distributed and explore new markets to encourage people to watch movies legitimately.

    According to Johri, localisation will drive the industry to grow exponentially and involve a billion consumers through multiple interfaces.

    Rao stressed that technology can help in increasing reach – as is obvious when new media platforms like Twitter are used to service the business and not for technology sake. “It is important to match the creativity of the medium with the audience. TV and print have been Push mediums and new media gives the opportunity to talk to the audience that can go a long way in reaching out to more people.”

    The panel agreed that regulation in various media needs to be looked at as more often than not, it has been found to discourage the growth of the medium.

    Further, Vats pointed out that the media and entertainment industry is an essentially consumer centric arena, but business and revenue models are still predominantly B2B. “So instead of setting the pricing according to what the market can pay, we set the pricing according to our business model and targets,” he said.

    In case of cinema, Roy Kapoor feels that capitalising on the non theatrical platform could be a good option. “The non theatrical platform benefits from the marketing carried out for the theatrical platform. We are still not at a stage when movies can be exclusively carried on non theatrical platforms as then they would miss out on the hype that those released on theatrical platform have.”

    At the end of it, the panel almost unanimously believed that while creativity and technology are proving to be boons for the growth of the media and entertainment industry and helping it inch towards reaching a billion consumers, the regulation bit needs to be worked on to smoothen the process.

  • Disney focusing on four lines of business in India around five brands: Andy Birdrd

    Disney focusing on four lines of business in India around five brands: Andy Birdrd

    MUMBAI: The Walt Disney Company, which gobbled up UTV Software Communications last year, is building four specific lines of business in India centring around five brands.

    Television, Film, Digital Media and Consumer Products will be the four verticals Disney will focus on. "We have five franchises – Disney, UTV, Marvel, Bindass and the newly acquired Star Wars – to play around in India. The acquisition of UTV has given us 250 million new consumers in this market that we couldn‘t reach before," said Disney International MD Andy Bird.

    Consumers already have a strong relationship with two of those five brands, and seek them in at least three of those core businesses.

    Delivering the keynote address at Ficci Frames 2013, Bird said that with the acquisition of UTV and the creation of the new Walt Disney Company India, Disney became India’s leading film studio and TV producer. "We are now one of India’s leading broadcasters, reaching more than 100 million viewers every week across the country. The UTV deal also positioned us as a significant player in the digital media space, thanks to Indiagames, the number one mobile gaming company in this market. And, just as importantly, the deal gave us the brilliance and vision of Ronnie Screwvala – the man behind UTV’s incredible rise – to build The Walt Disney Company in India.”

    What was the thinking behind buying UTV? “When we made the decision to buy UTV, we did it with two considerations in mind – the first was to create a diverse company in India; but also importantly it was to acquire the talents of Ronnie Screwvala to run the new company. As many of you know, Ronnie is a rare breed of entrepreneurs who has successfully built UTV and embraced Indian and Western cultures. I am so proud to count Ronnie as one of my friends and to have him lead the Walt Disney Company in India with his magnificent creative management team,” Bird said.

    He also spoke about Disney in India being different from what it is elsewhere. “The Walt Disney Company India will be unlike any other Indian media company: none will have the breadth of brands and franchises that TWDC India will have. No other Indian media company will have the breadth of businesses we will have and no other Indian media company will connect with generations of consumers like The Walt Disney Company India will do.

    “In India, we have built a creative prowess, second only to that found in the U.S. We have creative teams here in India who produce a slate of diverse films, produce a spectrum of original TV programming across our networks, build mobile games and applications and create style guides for our consumer products business. We are building a company that is far greater in scope than just one business, or being defined as being just in distribution and marketing. We are building the Indian Walt Disney Company.”

    Bird is excited about working with Indian talent, in-front and behind the camera, to create local franchises and look to export this talent to markets outside of India – offering opportunites for talent in Hollywood movies. “The Disney-UTV team is already working with their colleagues at Disney, Pixar, Marvel and now Lucas to innovate and produce even better product for here in India. Our Interactive team is working very closely with our Japan team – where we do the most amount of innovation in interactive and mobile outside the US – to really take this space in India to the next level and be ready for the Broadband wave that India will no doubt see."

    The aim at the end of the day is to build a content, creative, brand and franchise company in India. “ Of course, I have not touched on our Live Entertainment business as that is a work in process..so watch this space,” Bird added.

    He also spoke about the rapid rise of new technology and the fact that India’s more recent focus on this sector means that the country is capable of the kind of instantaneous shifts and opportunities in the media and entertainment space that simply are not possible in countries like the U.S. that will literally have to rip out existing infrastructure in order to replace it with the new technology that will drive the future. “ That’s an expensive proposition and one that will slow critical change in some of those more established markets – while India has the chance to define itself with the latest technology and innovation unencumbered by the remains of technology that defined the last century.”

    Differences in Markets: Disney recognises that there are different markets around the globe and it is no longer “domestic” versus “international”.

    “We recognize that each market we enter essentially needs its own “Disney” company – with strategies and products and messages that are compatible with the culture and relevant to local consumers. And we see tremendous opportunity in rapidly emerging markets like China, Russia, Latin America, South Korea – and, of course, India – so connecting with consumers in these regions is a key strategic priority for Disney, and will be integral to our future growth," Bird said.

    That’s why Disney‘s strategy for each region reflects local market realities and opportunities. "Our approach here in India is focused on media and entertainment – because that’s where we see the greatest potential for Disney, not only because the industry here is poised for a huge leap forward, but because of the rapidly rising middle class of consumers and their traditional focus on the family," Bird noted.

    “This is radically different than our strategy in China, for example, which is much more restrictive on the content imported into the country. In China, we’re focused on building our presence and our brand by telling Disney stories through theme parks and a strong retail effort. Likewise, our China strategy is quite different from our approach in Latin America, where we’re transitioning Disney from a high-end, rather elite brand, into the broader mass market.

    “The Disney brand will remain strong and clear and everything we do anywhere in the world will reflect the brand values consumers know and trust – but each market will dictate how consumers access and interact with that brand. At the Walt Disney Company, we believe that in stories we find the imagination needed to envision a better tomorrow, and the inspiration to make that vision come true. This belief guides how we act as a company, and how we connect kids, families, and friends first with each other, and then with the causes they care most passionately about,” Bird stated.

    Meanwhile, Disney Media Networks co-chair and Disney-ABC Television Group president Anne Sweeney spoke about the importance of understanding audiences and what they aspire for. That is why Disney is in the field everyday listening to kids, parents in terms of who they are what they do and what they aspire for. Then Disney builds stories around this. This is the strategy that Disney decided to do back in 1996 when Sweeney joined the company. "At that time there was confusion about the brand identity of Disney Channel. By doing research which focused on the quality of conversation with kids and parents rather than on the quantity Disney channel was able to become a powerhouse," she said.

    Sweeney also noted that to make great content at times one has to make unexpected choices. She gave the example of ’Hannah Montana’ where Miley Cyrus, an unknown, was cast as the channel spotted her potential. “We decided to take the riskier road and that led to greater reward," she said.

    Speaking on localisation, Sweeney said Disney started doing local shows in India in 2011. "We have five local shows in production," she added. "We also have a further four pilots in the pipeline. We celebrate cultural events like Diwali and Holi.”

    Sweeney said that it is important to strike a balance between adapting foreign formats and creating truly original content. She also touched on technology saying that one can make feature film content on a television budget. "One could do things that a few years ago were considered unthinkable. The drama ‘Lost’, for instance, used CGI," she averred.