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Category: Event Coverage

  • 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.

  • Viacom18 looking at regional play and more channel launches: Bob Bakish

    Viacom18 looking at regional play and more channel launches: Bob Bakish

    MUMBAI: Viacom18, the equal joint venture company between Viacom and TV18, is looking at launching more channels, expanding into regional markets and creating content for new media.

    Viacom is conducting a due diligence on the ETV general entertainment channels (GECs), Viacom International Media Networks President, CEO and Viacom18 board member Robert Bakish said today. "The regional markets are seeing fast growth," he added.

    Indiantelevision.com was the first to report that TV18 had offered Viacom the option to buy 50 per cent stake in five ETV GECs and 24.5 per cent equity interest in ETV Telugu. If Viacom decides to buy stake, the ETV GECs would move to Viacom18.

    When asked about what kept the joint venture alive (the only surviving one in the M&E space between a global media giant and a local company), Bakish said that it is not enough to have a shared vision. “The success of a JV is all about having a cultural fit. Our venture has had challenges and we have been forced to evolve. We decided to get into film production. We launched more channels like Sonic. Then we created IndiaCast to take advantage of digitisation. We see an opportunity to export content from India. We created a channel in the UK, Rishtey, using content from Colors and MTV.”

    The aim of Viacom partnering with Network18 was to make a local cultural connection. “In 2006 we realised that India offered opportunities we could not ignore. Viacom has resources but we felt the need for a local partner. JVs are a tradeoff. You don’t have complete control. Therefore it is important to have productive dialogue. In Korea, we have a JV with SBS which started a year ago,” said Bakish.

    In India, the company realised that brand positioning would be key. Therefore the decision was taken to make Colors edgier and more of a risk taker. “The good news for India is that more local production money is coming in. Out of this will come quality content.” He also noted that a hit television format is the most valuable IP. “After all, a local version of ’Fear Factor’ played a key role in Colors’ launch and success.”

    Network18 Group CEO Sai Kumar said the joint venture had been helped by the alignment between the two companies in terms of the scale of ambition and challenges that would have to be met. He noted that IndiaCast has allowed for reverse migration. Colors is now in 70 countries. “It is not just about the channel going abroad. Even shows like Ballika Vadhu have been being picked up abroad,” he said.

    Talking about new media, Sai Kumar said while platforms like OTT and VoD represent a risk and an opportunity, Viacom18 prefers to focus on the latter. Kumar noted that 13 years ago distribution became king as there was a lack of platforms to showcase content. Today the good news is that content is once again king. "The challenge today is that while consumption of content is at its highest it has gone multi device. The different platform windows are each a kingdom. With these platforms the possibility of milking content for revenue has gone up. The long tail will stand a better chance in the future,” he averred.

    Kumar called IndiaCast the second phase of the JV partnership.

    “Indiacast has a global multiplatform mandate.” Bakish said. “Star and Zee surprised people by coming together. We responded by creating one entity and partnered with Disney UTV to unlock the value of digitisation. While Nickelodeon and Disney compete fiercely with each other globally, the fact is that you have to look at each country differently."

    Referring to film business in India, Kumar noted that it is a great adjunct for Viacom18’s other businesses. “There are opportunities for synergies in our film business with Colors and other channels. At the same time, our exposure to film will be strategically limited. Having two films that are hits does not mean that the next three will also work. With each film you start from ground zero.”

    Bakish noted that film production business is not for the faint at heart. “We had long conversations about why we were in the film production business. We have had hits and misses but that is the nature of the game. Not everything will work.”

    In terms of the challenges facing the media and entertainment industry, Bakish spoke about the lack of reliability in measurement globally due to multiple platforms. “India is great to do business in but it isn’t perfect. Could digitisation have happened sooner? Sure. Could Phase one of DAS have been a solid four cities? Sure! Phase two is now happening and the industry needs to keep up the pressure to see that things work”, he noted.

    Kumar noted that advertising is now at its softest. Things will not change unless the measurement system improves. More homes for SEC A could help the niche genre, he added.

  • M&E industry lacks reliable data: Uday Shankar

    M&E industry lacks reliable data: Uday Shankar

    MUMBAI: For a $15 billion media and entertainment industry, the lack of reliable data is one of the major factors pulling down growth.

    Star India CEO and chairman of the Ficci Media & Entertainment Committee Uday Shankar wondered how a fledgling industry could function without availability of acceptable data.

    Urging stakeholders of M&E industry to set their house in order, Shankar said that there is lack of reliable data on audience measurement across verticals of the media and entertainment sector.

    "How can this industry function without a shared and non-controversial view of the most basic facts? Numbers are supposed to be the foundations of rational business decisions. How can we make decisions when professionals in the business of numbers can’t get their numbers straight?," he questioned.

    The lack of reliable data is not limited to TAM, Shankar elaborated. "As a TV executive, I am surprised sometimes how I am even able to function. I do not know enough about my viewers – in fact, I don’t even know how many of them are there. There are 140 million cable and satellite homes but the measured universe is 62 million households."

    Shankar also said that the country’s premier media agencies differ on a fact as basic as the size of the advertising market.

    He also pointed out that it‘s not just the television industry that suffers from lack of reliable data. In fact, the whole industry across verticals is functioning without proper data.

    "The ambiguity in data for other sectors of the media and entertainment is no less. For instance, no film producer seems to know accurately how many people actually bought tickets to watch his film," Shankar averred.

    Shankar also exhorted that there is a need for a change of mindset among stakeholders to take the industry to the next level.

    The M&E industry is a real economic enterprise and not just a vehicle of glitz and glamour, one that has the potential to solve the problem of unemployment by creating new jobs.

    "The time has come for all of us to make sure that it is not just industry status that we seek; it is a fundamental change in mindset," Shankar said, while delivering his keynote address today at Ficc-Frames 2013, an annual media and entertainment conclave held in Mumbai.

    He also said that the M&E industry is capable of creating employment and wealth much faster than most other sectors and has the ability to be a force multiplier, like it is in most countries.

    "It is particularly relevant in India because it can be an employment generator without massive public investments and without being hampered by the deficiencies of public infrastructure. Just to put things in perspective, as a $15 billion industry, we employ over 6 million people. This can be so much more significant and meaningful," he said.

    He also bemoaned the fact that the industry despite the huge potential has not got the adequate support from government.

    A case in point, Shankar said, was the government‘s recent decision to increase customs duty on Set Top Boxes, notwithstanding the fact that the cost of STBs will go up at a time when the country is moving towards mandatory cable television digitisation and impose withholding taxes on content rights

    "The lens often used to look at this industry is largely one of glamour and propaganda and the biggest debate is on how to control and contain it. As a result, the growth of M&E has not been supported by policy and regulatory initiatives," he added.

    Emphasising that the industry is facing an imminent talent crunch, Shankar said: “We hide under the pretense of creativity and have convinced ourselves that creativity gives us the license to be informal and chaotic. It is this informality and chaos that has seeped into our approach to spotting and grooming talent. This is dangerous. We must realise that discipline and formality are not antithetical to creativity and if anything they are necessary ingredients to fostering the creative process.”

    Shankar said efforts to curb free speech in a robust democracy like India is one of the biggest challenges that can potentially derail the industry from its trajectory. “When Satyamev Jayate points to weaknesses in the medical system, doctors are offended. When Jolly LLB creates a courtroom satire, lawyers are offended. Even when a precocious teenager posts a comment on Facebook, some people start baying for her blood,” he lamented.

    “What is interesting to me is that we all agree that the role of media is to question the status quo. But with the right to question must come the right to provoke and the right to offend.”

    Shankar also set out the ambitious Rs 10 billion target for Indian movies. "We should work hard and strive for such success. If the stakeholders can come together, a lot can be achieved. We have seen that in the case of digitisation," Shankar said.

  • Indian print media still has time before negative trend starts: N Ram

    Indian print media still has time before negative trend starts: N Ram

    MUMBAI: The Indian print market is different from the west and is still showing growth in readership unlike many matured markets where digital growth is affecting readership. India has a ‘new kind of advantage’ as readership is still growing.

    However, even if the media here is growing, it can’t afford to be complacent about the timing because India could head towards “a mature market-like situation”. These were the thoughts of The Hindu former editor-in-chief N Ram, who was delivering a keynote at the third day of global media convention Ficci Frames 2012.

    Throwing a word of caution, Ram said that in 3 to 7 years, Indian print would start suffering the same fate as that of the US.

    Citing the example of matured markets, Ram said that newspapers and broadcast are in “irreversible decline” mode and there is “anxiety and gloom”.

    Ram was talking on ‘Building Deeper Reader Engagement- Sustaining Long Term Newspaper Loyalty over Regions’. He said that in the mature markets, news media is in crisis because of a decline in the circulation as more people are embracing digital. Even in the broadcast media the dominant players are witnessing sharp decline, he said.

    However, India has a different advantage, said Ram while outlining the “Two Media World Phenomenon”. He said that regional languages and Hindi newspapers are seeing increase in their circulation. He was optimistic that the medium term prospects for the media industry are looking good.

    He stressed on the need of building the bond of trust with the readers, which according to Ram can engage the readers to sustain their loyalty.

    Ram said that the most important thing is to stick to the basic principles of journalism – context, accuracy, perspective, fact checking and verification. This, according to him, is imperative in building a relationship with the readers.

    Ram said that “trust is the key to good journalism”. He emphasised on the need for a brand to be clear about its identity, core values and focus without imitating anybody else.

    He also warned against “editorialising in the guise of news” and said that the readers want shorter articles and more analyses and editorial content and views, especially in the digital viewing context.

    Talking about digital, Ram said that the time is more challenging and exciting than ever before. Increasing popularity of the digital media will hurt circulation.

    Terming it as a “Digital Age Paradox”, Ram said that the newspapers are witnessing increase in readership of their online editions. However, there is no business model.

    Ram said that the revenue model has not been evolved for the digital yet and so it will not replace the old revenue model of the newspapers any time soon. In the digital era, a major share of the revenue goes to the search engines like Google and content providers like iPad apps.

    This, he said, is squeezing the newspapers’ revenue, as they have to subsidise digital journalism, which is cannibalising their circulation.

    Dainik Bhaskar Group director Girish Agarwal also stressed on the need of maintaining the standards and fundamentals of journalism.

    As per Agarawal, India had a huge advantage in terms of numbers as there is a huge gap between people who can read and who actually read a newspaper.

    He added that its a Herculean task for intellectual organisations like newspapers to be relevant to consumers (readers) while keeping the fundamental of news intact. He said that a newspaper brand cannot rest on its past glory but should move ahead by acknowledging and understanding what the consumer wants.

    He also added that newspapers should have “global vision and hyper local content”.

  • Regional TV: The land of opportunities and challenges

    Regional TV: The land of opportunities and challenges

    MUMBAI: For national broadcasters, having a regional footprint is becoming imperative as it is growing at a furious pace compared to its matured richer brother that is more than double its revenue size.

    Pegged at Rs 140 billion, regional TV media grew at a whopping 70 per cent in 2011 compared to the industry growth of around 12 per cent. Deeper penetration of cable & satellite (C&S) homes, rise in per capita income, emerging middle class and high consumption expenditure are fuelling this growth.

    Asianet managing director K Madhavan calls regional the new “National” as the language entertainment channels compare strongly with the Hindi GECs on critical parameters like viewership and reach.

    “Regional has become the new national. In 2011, the regional space grew at 70 per cent compared to the national growth of 11-12 per cent. Overall, the television industry is pegged at Rs 300 billion while the regional is Rs 120-140 billion. Regional channels have a strong captive audience. One of the reasons for this high growth rate is the emerging new middle class with increased purchasing power in the Tier I and Tier II cities; the positive impact of this could be huge and bigger. The per capital income of Southern states is almost 80 per cent higher than the Northern states.”

    In recent years, as national markets have slowed down, advertisers have shown renewed interest in regional television.

    Says Zee Entertainment Enterprises Ltd (Zeel) EVP regional channels Sharda Sunder, “Growth in the regional sector is largely due to a few factors like size of population. The top nine regional states form 50 per cent of the population and the per capita income in these states is higher than the national average. Consumption expenditure is, thus, higher than the national average.”

    Regional broadcasters, however, do have their own set of problems that need to be dealt with on a long-term and short-term basis. These range from lack of quality content coupled with rise in cost of content to monetisation. Carriage fee is also a huge concern.

    Says Sunder, “Subscription revenues need to drive in. New media is also a challenge.” She was speaking at Ficci Frames 2012.

    The regional market mainly consists of six states – Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, West Bengal and to a lesser extent Maharashtra. “Tamil Nadu has the lion’s share with a revenue size of Rs 12 billion, followed by Telugu and Bengali which accounted for Rs 8.5-9 billion each. Kannada and Malayalam rake in revenues of Rs 6 billion while the Marathi genre is estimated at Rs 3.5-4 billion,” says Madhavan.

    He also pointed out that the penetration of cable as well as DTH is growing in the South; regional channels have also increased. The quality of local content has improved due to competition.

    “Of the total C&S penetration, we had one-third in the South, while DTH has conquered 30 million connections out of the total 42 million. Time spent in non-metros is growing and should catch up with the metros in two to three years. Currently, time spent in non-metros is two hours and three hours in metros. Due to competition with national channels, the quality of local content has increased considerably. The contribution of revenues from overseas market is 10-12 per cent,” he averred.

    Another challenge is the movie-driven GRP, with almost 35 per cent of regional GRPs coming from movies. “The problem is that the cost of movies has gone 200-300 per cent up in the last 2-3 years. There is difficulty of good content and the shortage of skilled talent specially to cater to 100 plus regional channels has become a big issue.”

    Since movies drive ratings for regional channels, both Madhavan and Sunder are of the opinion that financing film related content could be a preferred option. Channels, in fact, need to look at getting into movie production.

    Madhavan said the cost of producing a show has gone up considerably. While it used to cost Rs 100,000-150000 to produce a local show, it has increased considerably. A case in point is the Tamil version of Kaun Banega Crorepati (KBC).

    “KBC, which we are producing in the South, costs Rs 2.5-3 million per episode. The big question is whether regional media will be able to absorb this cost. Earlier, 90 per cent of the software was available locally. Now by default we are forced go to national producers like Endemol,” he pointed out.

    While Madhavan concurred with Sunder that digitisation is good for the industry, he was skeptical about its reception in the semi-urban and rural areas as set-top box costs were high. He also said that the carriage fee for regional channels has gone up.
    Madhavan also termed the recent decision of the Tamil Nadu government to impose heavy tax on DTH service as a dampener for the industry since it had emerged as a major source of pay revenue for the broadcasters.

    “Recently the Tamil Nadu government imposed a tax of 32 per cent on DTH services, so that is going to impact pay revenues. Advertisement rates are the lowest in the country because of the unhealthy competition in the regional markets. We are selling at 8-10 per cent of the national channel rates,” he stressed.