ITV

Category: Specials

  • 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.

  • 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.

  • Independent cinema with good scripts have future

    Independent cinema with good scripts have future

    MUMBAI: There is a strong future for independent cinema in India that can focus on telling stories without first worrying about stars, music.

    This was the general view of screenwriters from India and overseas at a session at the Ficci Frames convention here.

    The screenwriters included an array from all over the world: Jose Rivera who was nominated for an Oscar for ‘The Motorcycle Diaries‘, Guillermo Arriaga who has also been nominated and has written films like ‘Babel‘ and ‘Amorres Perros‘, Shekhar Kapur who made ‘Elizabeth‘ and ‘Bandit Queen‘, Kasi Lemmons who has made African American films like ‘Eve‘s Bayou‘, Asif Kapadia who won a BAFTA award for his documentary ‘Senna‘ which was earlier screened at Frames, Michael Goldenberg who wrote the screenplay for ‘Harry Potter and The Order Of The Phoenix‘, and Audrey Wells who wrote ‘Under the Tuscan Sun‘ among other films.

    The discussion came in the backdrop of the Sundance Institute tying up with Mumbai Mantra for a Screenwriter‘s lab initiative. The first one was held recently over five days. Similar labs will be held over the next three years. The aim is to give aspiring screenwriters a chance to show their ideas and screenplays to established global screenwriters. A total of 500 applications were received and eight aspiring screenwriters were chosen. They had one-on-one sessions with the global screenwriters and ideas were exchanged.

    Lemmons noted that there was a lot of variety in the scripts that were selected.”There were personal stories about a personal vision whether funny or sad. In each country, the screenwriters‘ lab is a way to get in touch with the culture. The scripts I saw in India had both a gentleness and a passion of spirit.”

    Arriaga said the scripts of the aspiring Indian screenwriters were very human. Humanity was on the surface and the screenplays revealed contradictions. There were different screenplays including a fable about handicapped people. Goldenberg felt that while the cultural specifics are different, there is universality in stories. He was struck by the generosity in spirit of the Indian writers and feels that their stories deserve to be told.

    Rivera said looking at the talent available, the future for independent cinema in India is wonderful.”I did not know what to expect before coming to India. But I found that the quality was high and the range of obsessions was broad. Different themes were explored in the screenplays, such as migration, caste, religious intolerance. Unselfish themes emerged in the screenplays and I was impressed by the screenwriters‘ desire for a global voice.”

    Wells felt that some of the scripts she had seen would travel abroad if made into films. The theme of pain does not belong to any one country. She called the stories, beautiful, advanced and unrestricted. Kapadia noted that partnership between Sundance and India which loves movies will allow screenwriters to just focus on the story without worrying about stars, music etc.”At the lab I heard intelligence and I heard from people who know how to tell stories. The lab will allow writers to feel confidence and be able to tell stories in any way.”

    Kapur noted that the problem in India, Hollywood and even in China does not lie in lack of screenwriters. But people are not willing to listen. What is needed are less suits and more people who are wiling to listen. That is what the global screenwriters did at the lab. The issue is that people only look at empirical data. They ask screenwriters if they can produce something similar to the last hit film.”But when you listen then you understand the idea of storytelling and filmmaking.”

    The global screenwriters were also asked about that what the starting point was for their scripts. Lemmons said she was an actress and the casting director had wanted her to tell a story. So she had narrated the story of an aunt and then asked herself who was responsible if a child was angry at a parent and something bad happened. This shaped the idea for ‘Eves Bayou‘ which existed on two levels – metaphysical and realistic. “If two people in a family remember an event in two different ways, where does the truth lie?”, she asked.

    Ariagga‘s starting point was when he bought a dog at the age of nine. The dog was ugly but used to fight other dogs. His dog killed 100 dogs in fights. People loved to bet on his dog. He wanted to write a story about that dog and so ‘Amorres Perros‘ was born.

    Goldenberg said Harry Potter was the most personal film he has worked on as he connected with the themes in the film like the struggle of adolescence, rage, fear etc. It was also the most independent experience he has had as there was no worry about whether the film would make money. He could just focus on the story.”We could focus on finding the best way to tell the story. It was a situation where the producers trusted the director”.

    Rivera said an image and the question of ‘what if‘ is his starting point. Something arresting comes into his field of vision that he cannot let go of. He gave the example of a pregnant woman whom he saw on the side of the road when he was driving one day. It was raining but he did not stop his car. He wondered subsequently what could have happened if he had stopped.

    Wells said when she first moved to Los Angeles, she did not have much money and did not know anybody. One day she went to a cliff on a beach and imagined that she was talking to an older version of herself. This notion became a film ‘The Kid‘ with Bruce Willis where Willis‘ character as an adult who converses with himself as a boy.”I exploit my own strangeness which serves as a fertile ground for my movies.”

    Kapur said that he wants to own every character in a film. He wants to understand every character. ‘Bandit Queen‘ was about a situation that happened 200 miles from his village and he felt angry that he did not do anything. He examined his manhood and directed anger at himself. His aim is to bring characters to an emotional idea that he has experienced. According to him, if a film is good then the audience will be able to see their own story in the film. If a film is really good, then viewers will see a different story ten years down the line.

    Kapadia said he had initially begun writing ‘Warrior‘ as a Japanese film but then changed the setting to Rajasthan. Earlier, he had tried to write a screenplay set in London about his own experiencs but nobody was interested. With ‘Senna‘ he did not want to do the normal interviews. He wanted it to be more visual.”You have to trust your gut and instinct”.

    Wells touched on the issue of unspoken dialogue. Her fear is that directors will not shoot what is unsaid but which must be communicated. Lemmons agreed, saying that often what is happening around the dialogue is more important.”Screenplay goes beyond dialogue.”

    The panel of screenwriters were also asked about their fears. Kapur said that fear is about doubts that come in one‘s mind. That is why writers do their best work when they are in a state of panic as the deadline draws nearer.”The screenwriters then propel themselves into a no doubt zone.” Rivera fears running out of time to do things he should be doing.”Writing is a relationship and it has never disappointed. I should fear that one day it will let me down but I don‘t.”

    Lemmons said that fear exists in terms of starting to write a screenplay. Characters talk in her ear for a long time and she worries about how to get on the page. But once the process starts then things get better. Kapadia said that he has not written anything for a long time and has just been directing films. The lab made him think about going back to writing something. His fear is how he goes about doing things when he sits in front of a blank piece of paper. Wells noted that writing is not easy. If it was easy then more people would be doing it. It is about shutting off the phone and going to a lonely place.

  • Challenges of TV programmers in a fragmented market

    Challenges of TV programmers in a fragmented market

    MUMBAI: Tailoring content to fit into a fragmented television and fast-changing socio-economic milieu is a fresh challenge that content creators face in India today. An expansive youth population makes the task even more daunting. So what works? Gut feeling backed by research and knowledge of social changes taking place in the country, say senior programming executives of leading entertainment broadcasters.

    The decision of launching a new show is, indeed, very complex. Zee TV programming head Ajay Bhalwankar says, “Research gives us certain ideas, but it is not a prescription. One should go with instinct more than research. And it is something that one needs to understand from the viewer‘s point of view. What we perceive, what we do, how will the society react is very complex and it is a programming person’s job to understand this complexity.”

    TV programming executives need to understand the societal changes that are taking place in India as the economy opens up and the speed of growth accelerates, albeit with inequalities and other challenges. Indian viewers have shown that they have taste for social issue-based entertainment content, evident from the popularity of Balika Vadhu that has stayed for long as Colors‘ flagship show. Research helps in providing information and capturing these trends.

    Says Bhalwankar, “When you are creating a show for Indian audiences, you have to behave like a family member and that viewpoint can come through a research. There is a lot of gut feeling involved while creating a show but that needs to be informed through research and also evolved along with the changes taking place in society.”

    Though private television has expanded its reach in the country, there are still 220 million people who don‘t watch TV. Programming executives need to create content that will make them watch.

    Says Star India SVP-content strategy Gaurav Banerjee, “We are shaping India in the real sense. C&S has a large effect on women in rural India. There have been behavioural changes that have been seen. As content creators, it is our responsibility to also reach out to people who don‘t watch television.”

    Making TV shows that have an impact is important. Says Storyshare International‘s television producer Peter Dodds, “Creative producers have to take the vision of writers and directors ahead. We can‘t take drama for granted. If you say that content is king, then the story has to be relevant and engaging. At the same time, the nature of this business is that one has to be risk friendly. No one exactly knows what works and what doesn‘t.” Based out of Australia, Storyshare International is producer of shows such as Neighbours and A Country Practice.

    Driven by profit pressures in a tough global economy, broadcasters yield to commercial considerations when they decide on content. Producing popular content is, thus, very important and not an easy task.

    According to Ormax Media CEO Shailesh Kapoor, there have been 91 new show launches in India in 2011, out of which only 7-8 have had lasting impact. Most of them didn’t even survive for more than six months.

    “Television shows in India have 15 per cent success rate. The research team of channels should work in co-ordination with the creative team. Research plays an important role and can help this 15 per cent grow to at least 30 per cent,” says Kapoor, co-founder of a consumer knowledge firm that specialises in the media and entertainment business.

    Following the herd and adapting ‘me too‘ concepts do not work. The biggest example of this is the ‘Saas-Bahu‘ theme, popularised by content production house Balaji Telefilms through its three serials (Kyunki Saas Bhi Kabhi Bahu Thi, Kahaani Ghar Ghar Ki and Kasauti Zindagi ki), that ran successfully on primetime television on Star Plus for so long but failed on other Hindi entertainment channels that tried to create similar dramas.

    Spotting the trend is important. “For the last year or so, the general mood of entertainment in the country is light-hearted dramas. There has to be a rare mix of uniqueness and relevance in the content. Formats like ‘Bade Achche Lagte Hain’ on Sony are good examples,” says Kapoor.

    Opines Bhalwankar, “The formula today is to work outside the formula.”

    Programming executives should keep their creative juices alive, going beyond research and commercial considerations. Says Geo TV CEO Ibrahim Rahman, “One should do something with conviction and passion and not only think about making money. In Pakistan, the popular dramatic television shows are issue-based.”

    International reality show formats have mushroomed in India, but their initial spark is dimming. Says Banerjee, “We are beginning to see the first steps of indigenous reality content. We launched ‘Aap Ki Kachehri’ with Kiran Bedi. The trend of bringing International formats is still there, but it’s not easy anymore. There is nothing like KBC (Kaun Banega Crorepati) that happened years ago and it has grown because it is truly Indian. We don’t get the same impact for non-fiction properties these days. The most popular shows are fiction because they are more Indian.”

  • Indian filmmakers need to change mindset to make global films

    Indian filmmakers need to change mindset to make global films

    MUMBAI: Indian films have won laurels, been applauded at the box office and are watched theatrically, on television and many other available mediums. What then is the reason that they have failed to make it to the Oscars?


    In fact, Indian cinema can make an impact internationally since many Indian actors have already begun making appearances in Hollywood. So what is holding back?


    Former partner C.A.A. and chairman Rick Nicita said, “To make an international impact, Indian films should be based around the world and not be India-centric. Not that all Hollywood films are based on foreign land, but those which are always leave an everlasting impact in the minds of millions of people. It is not that Indian films are bad, but filmmakers here need to change their vision”, he said.


    Giving an example, Nicita spoke about Danny Boyle’s Slumdog Millionaire. “Though it was a good film, its success was financially just about okay taking the overall box office collection of the film,” he said.


    Cameron Bailey, artistic director of the Toronto Film Festival, referred to actors like Kabir Bedi who had done more than 60 films in India, featured in Hollywood films, and also had a taste of European cinema and television. Nana Patekar, Bailey said, was an exemplary artiste, having done varied kind of roles. “He stands a very good chance of navigating international waters.” He was speaking at Ficci Frames 2012 at a session on ‘Navigating the International Waters: Indian Cinema and Actors Overseas‘.


    Bradd Pitt had risen to international standards with his intense dedication. “Being a hero, Pitt has often undertaken small character roles and has excelled in them,” Bailey said. He also referred to film personalities like Colin Firth (Kings Speech fame), Freida Pinto (Slumdog Millionaire), Kiran Rao (director Dhobi Ghat), Anurag Kashyap and Shah Rukh Khan.


    But Bailey lamented that Indian cinema does not go beyond the South Asian audiences.


    Academy of Motion Pictures Arts & Sciences (Oscars) Governor Mark Goldbatt said he had been seeing the Indian Film Industry “growing bigger and bigger by the day. What the country’s film industry needs is advent of good technology because there is no dearth of acting talent in the country.”


    Life Entertainment, Berlin, CEO Stephan Ottenbruch was of the view that the film industry in India has seen good development in the last two years. “I was amazed to see the technicality in Shah Rukh Khan’s Ra.One. I wish it all the best.”


    Kabir Bedi said the business of casting was a major bane of the industry here. An actor should establish himself so that his name is well remembered.


    Agreeing, Ottenbruch said, “The real name of Ben Kingsley is Krishna Bhanji but he is known by his screen name and not by the other. I remember once Kingsley told me that if I had to seek a film role in the name of Krishna Bhanji, producers will say that will we call you, but if I go as Kingsley they would ask me ‘When will you start?””


    Commenting on how Indian films can make it to the Oscars, Ottenbruch advised Indian filmmakers to make films that should move people emotionally, irrespective of any region or country.

  • Nothing niche about niche channels

    MUMBAI: There is nothing called niche channels as the viewership for speciality content has grown substantially and the term is used by media buyers to stitch better deals, broadcasters said.


    Zee Sports Business CEO Atul Pande said Ten Golf can be termed as a niche channel but the truth of the matter is that 1.9 million viewers watched a golf game last year. The pricing at Rs 200 is a premium and the channel addresses specific consumers.


    “Certain views have developed on niche content that are incorrect. 40 million people viewed a soccer game last year. And yet when the channel went to the advertisers to sell soccer as an alternative to cricket, the advertisers said that soccer was niche,” Pande said, while speaking at a session on ‘Building Sustainable Models For Niche Content‘ in Ficci Frames 2012.


    Turner International India GM Entertainment Networks South Asia Monica Tata said that the concept of niche does not exist, while urging for a different ratings system for addressing special interest channels. “There are special interest channels for audiences who appreciate certain content, “she said.


    A&ENetworks TV18 JV president Ajay Chacko agreed that the concept of niche existed only in the minds of media buyers. “Niche is a currency used not by consumers but by media buyers. We should look at absolute numbers and not just the percentage of viewers for English content. The power of niche brands will be a force to be reckoned with going forward as digitisation happens,” he said.


    Star India senior VP English programming Rasika Tyagi noted that one shouldn’t just talk about absolute numbers but also about the quality of the audience being delivered by channels like Star World. “I may only deliver five million viewers, but those viewers are hard to reach out to on other platforms. They have money and are opinionated. They dictate trends.”


    Tyagi also said that paying Rs 5 for a channel (in Cas territories) is not a sustainable business model in the long term.


    Tyagi also said that paying Rs 5 for a channel (in Cas territories) is not a sustainable business model in the long term.


    NDTV Lifestyle CEO Smeeta Chakrabarti noted that broadcasters devalued their content through such low pricing. “You now have a situation where somebody pays Rs 150 for a movie ticket but will not pay even Rs 5 for a channel. The way we look at specialist programming is that we cater to people’s passions. We build tribes and communities. Now they should be willing to pay for their passions.”


    Star CJ CEO Paritosh Joshi who moderated the session pointed out that BARC (Broadcast Audience Research Council) is developing a measurement system that understands not just numbers but also viewer’s affinity to content.


    The issue also came up about content being able to travel. Tata said that kids content like ‘Kumbh Karan‘ does travel. “It is about a show‘s ability to relate. However, we (Turner) who run children’s channels have to be more careful compared to other broadcasters about what is being shown.”

  • India must remove price controls for broadcast industry to thrive: Lopez

    MUMBAI: Price controls are limiting the revenue growth for broadcasters in India as they earn net income of $700 million from subscription after paying out carriage fees of $400 million. Investments in programming are muted and, as a result, India is not able to export television formats and finished content while software, music and animation is travelling overseas.


    “If the industry is to see strong ROI which would encourage greater investments in programming, then price controls must go,” said Fox International channels president, CEO Hernan Lopex at Ficci Frames 2012.


    Advertising revenue stands at $2.6 billion and, thus, broadcasters are heavily dependent on advertisers. An ideal revenue mix should be 50:50.


    “No other democracy puts controls on television. Price controls equals creative shackles; they trickle down the creative process. At Fox we buy formats and content from different markets but India is not there. This is not due to lack of talent, ambition and vision,” said Lopex.


    Lopex gave the positive example of Colombia where a TV episode costs $150,000 compared to India where an episode costs around $20,000. The turnaround there was the emphasis on creating a dual revenue stream. New channels were launched for underserved audiences. Consumers also wanted content in Spanish and Portugese.


    “That is because Colombia has a strong system of TV production, has great writers, animators, actors and the country also fights strongly against piracy. In India under declaration, along with controls, means that the broadcasters are getting squeezed,” Lopex averred.


    India must let go price controls and allow consumers tell how valuable content is. “When consumers see that spending more money results in better content, then they will be happy to pay more. In some markets, initially consumers thought that cable and satellite services were not worth paying for. But as more options were added, they realised that they were getting value. I am looking forward to a time when my children, when searching for content, find choices that come out of India. I am keen on buying Indian formats that can be shown elsewhere,” Lopex added.


    FIC has now nine channels in India, including National Geographic. “We have seen double-digit growth year-on-year. But things have to be approached differently here compared to other global markets,” he said.

  • Cloud technology to empower users

    MUMBAI: Cloud-based technology will empower consumers and has the potential to change the way content is consumed. This was the underlying theme of the panel discussion on the ‘Digital Entertainment with Connected Devices and Cloud Based Services‘ at Ficci Frames 2012.


    For starters, Cloud Computing is a web-based service which allows users to access content from anywhere by tapping into the vast resources of the Internet.


    Reliance Entertainment Digital Business COO Manish Agarwal said the company’s subscription-based video-on-demand service Bigflix is run completely on cloud technology which allows consumers to watch video seamlessly from any device, anywhere.


    UTV Interactive Sr. VP Sameer Pitalwalla said UTV, which produces a lot of movies every year in addition to the content that it produces for its various channels, is among the few companies to digitise its content.
    Pitalwalla further stated that the content produced by the company is gradually uploaded on its YouTube channels besides Facebook, which has become the defacto destination to access and exchange content.


    Adobe Systems South Asia Regions MD Umang Bedi said the company has transitioned to cloud technology as the consumers are asking for it. The company has created Adobe Creative Cloud, a creative hub, which allows users to explore, create, publish, and share work using Adobe services.


    Tata Communications Head- Sales, Media & Entertainment Richard Craig Mcfeely said the cloud service will help Indian content owners in a big way to monetise their content well in international markets that have sizeable NRI population.


    One sentiment that the panellists echoed was that the cloud technology will help content providers understand their consumer preferences as cloud stores data about user which allows them to provide content that is relevant to their tastes.


    “In simple terms, cloud knows the person and will help to dissect what the consumer wants. From consumers perspective it’s about the content that they want,” Bedi said.


    According to a study conducted by research firm IDC for Microsoft, the cloud technology is projected to create two million jobs in India by 2015 and will generate nearly 14 million new jobs worldwide in the same period. The study also estimates revenues from cloud innovation to reach $1.1 trillion per year by 2015.

  • 1000 deals in M&E worth $50 bn in 2011: Ficci KPMG report

    1000 deals in M&E worth $50 bn in 2011: Ficci KPMG report

    MUMBAI: Deal activity in the Indian media and entertainment (M&E) industry stayed strong in 2011. More than 1000 deals were stitched as mergers and acquisitions and private equity funding accounted for over $50 billion, according to a Ficci KPMG report.


    The deal activity in the M&E sector witnessed a significant uptrend in 2011 with 42 transactions valued at $940 million as compared to 27 transactions valued at $693 million in 2010 and 27 transactions valued at $722 million in 2009.


    However, the deal activity did not touch the peaks of 2008, which saw 38 deals valued at $1.5 billion.


    Private equity funds closed 16 deals valued at $319 million, while, within the M&E sector, television was the largest contributor accounting for $320 million of the total deal value.


    “Consolidation will be a major theme going forward as media and entertainment companies will seek to grow inorganically by expanding into newer geographies and by adding to their existing portfolio. Consequently, robust deal activity is expected across all platforms and segments in 2012,” the report says.


    Marquee transactions in 2011 included the Walt Disney Company’s acquisition of an additional 41 per cent stake at a value estimated to be over $300 million in UTV Software, thereby taking its total shareholding in UTV to approximately 90 per cent, Providence Equity Partners’ PE investment in UFO Moviez India ($58 million), and HSBC’s PE investment in Avitel Post Studioz ($60 million).


    Television


    The large volume of funding received by this segment over the last five years has resulted in the continuing wave of consolidation. TV18’s acquisition of the Eenadu Group in early 2012 for a consideration of $395 million was the standout transaction of the year indicating the need for a complete channel bouquet focusing on profitable growth.


    The need for profitable growth and to more effectively build the business around its niche segments resulted in the Walt Disney Company making a delisting offer for UTV Software Communications.


    Educational Trustee Company, floated by the promoters of Dina Thanthi Group, acquired Metronation Chennai Television (NDTV-Hindu JV channel) for $3.2 million, further reinforcing the theme that businesses are focusing on core competencies and exiting segments that witnessed hyper competition.


    However, the regional ad market boosted by increasing reach and consumption in tier II and tier III towns is reasonably under capitalised. Regional channels with a disproportionate share between viewers and advertisement dollars are likely to witness investment interest from financial investors and large broadcasters.


    Intense competition in general entertainment and news genre has resulted in broadcasters offering content across niche genres such as food, lifestyle, music, technology, science, thus catering to an urban upscale audience that enjoys a disproportionate value of ad dollars.


    Distribution Biz


    The cable and satellite distribution market witnessed minimul deal activity. However, 2011 witnessed a landmark distribution tie-up between Star Den and Zee Turner. The two formed a 50:50 JV, Media Pro Enterprise India, to jointly distribute channels.


    The C&S distribution market has over the last few years seen its fair share of investment activity from financial and strategic players on the key premise that this unorganised market, dominated by local cable operators (LCOs), will witness disruptive changes brought forward through digitisation.


    In their quest to build a sizeable subscriber base, each player is saddled with high customer acquisition costs, leading to low profitability and being in the investment stage.


    Going forward, a consolidation may be witnessed amongst MSOs (multi-system operators) and capital be raised by them. DTH players, promoted by large business houses with diverse business interests, may pave the way for consolidation by exiting non-core, non-profitable operations.


    Print


    Favourable demographics saw larger players seeking to expand reach by entering new markets by acquiring smaller regional players.


    The newspaper industry, which is facing declining readership in many international markets, continues to thrive in India, driven by increasing literacy rates, consumer spending and the growth of regional markets and spatiality newspapers.


    The newspaper industry has high entry barriers as existing players have developed strong brand equity and have developed control over their distribution network. Hence, regional print companies with strong operating dynamics are expected to raise capital through the capital markets or PE to expand their presence across the media value chain and also launch city centric supplements.


    Consolidation is imminent as the large players will continue to seek regional players to add to their portfolio.


    Activity from international players may remain muted till such time that FDI caps are rationalised.


    Radio


    As the oldest and one of the most cost-effective form of advertising, radio has more reach than both traditional print media and television.


    Although deal activity was limited, 2011 witnessed the re-emergence of satellite radio services with Saregama India acquiring 10 per cent stake in Timber media.


    The Phase III round of licensing is expected to bring about regulatory changes such as relaxation of FDI limits, grating permission to own multiple frequencies in a city and a permission to air news and current affairs. As a result, this segment is likely to witness deal activity in the form of consolidation amongst existing players, PE investments/exit and increased interest from International strategic players such as Fox, Walt Disney, Hearst, Rogers Communications, Virgin Group and CTV Globemedia.


    Films


    India remains the largest film consuming market in the world and continues to attract interests from financial and strategic investors. With economies of scale and cost efficiencies being prime value drivers in the film exhibition space considering low value of ticket sales, the film exhibition segment is expected to witness further consolidation and also embrace technological innovation.


    On the back of investment received from Providence, UFO Moviez India acquired a majority stake in Scrabble Entertainment to globally expand its business of digitising screens.


    Large players in M&E ecosystem may consider taking minority stakes in production houses.


    Gaming


    Deal activity in the online gaming segment searched in 2011 as both financial and strategic investors clamoured to get a share of the industry, estimated at $280 million.


    Private equity players invested in Games2Win while UTV acquired additional 30 per cent stake in Indiagames in a deal worth $20 million. The growth prospect for the industry remains strong as global gaming firms enter into distribution alliances to promote their games through the web, mobile phones, consoles and gaming cafes.

  • Ten Golf kicks off, priced at Rs 200

    Ten Golf kicks off, priced at Rs 200

    MUMBAI: Taj Television Thursday launched Ten Golf, its third specialised channel, and has priced it aggressively at Rs 200 per subscriber a month.

    The golf-dedicated channel will be currently available on Dish TV and on Hathway Cable & Datacom‘s digital set-top boxes (STBs).

    “We have priced the channel at Rs 200 and are only offering it as a standalone channel . Ten Golf has set a target of 500,000 subscribers in three years,” Taj TV CEO Atul Pande told Indiantelevision.com.

    Taj has become a four-channel sports network, the other three being Ten Sports, Ten Cricket and Ten Action+. The channel will be on four platforms by the end of the month.

    “India as a sporting nation is fast transforming from a single sport to a multi-sport nation. As one of India’s leading sports broadcaster, we understand that the sports consumption pattern of the Indian viewer raises the need for specialised differentiated sport channels and this is what we hope to deliver to our revered golf viewers,” Pande said.

    The channel will showcase a mix of live, non-live and feature programming, “Along with live Golf action, Ten Golf will also showcase feature programming on Golf including magazine shows and archival programming,” said Pande.

    In terms of marketing, the channel will be promoted through a combination of ATL and BTL activities. Below the line activities will come in the form of a promotional offer through things like free golf rounds and merchandise.

    International syndication is also an important part of the plan, Pande said. Locally, the channel sees viewership potential in non-metro cities like Pune and Punjab.

    Ten was recently on a content acquisition spree , getting hold of the broadcast rights of professional golf tournaments in India through a three-year partnership with PGTI.

    The broadcaster had recently inked a licensing deal with NBCUniversal which will allow it to showcase 400 hours of golf programming. It also has European Tour and Asian Tour rights till 2016, in addition to US PGA Championship, Ryder Cup, LPGA and LET.