Category: Year Enders

2009: Bollywood’s Bad Year

For most observers, 2009 was year of mixed fortunes for Bollywood. While the industry took efforts to globalize and some of its talent got global recognition in the form of awards, it had a lean year on the domestic front.

A multiplex strike and a drought of hits got the industry into a tizzy. The saving grace was the end of the year Xmas release, the Raj Kumar Hirani-directed Aamir Khan starrer 3 Idiots that went on to become the highest grossing Hindi film ever with a gross collection of Rs 3.15 billion and counting.

The year‘s highlight was the aggressive moves by the Anil Ambani-owned Reliance Big Pictures into Hollywood. Reliance Big and American filmmaking icon Steven Spielberg locked the first phase of financing, sealing an amount of $825 million that would allow the joint venture to make six films annually for global audiences.

Reliance Big Pictures also signed script development agreements with Nicolas Cage‘s Saturn Films, Jim Carrey‘s JC 23 Entertainment, George Clooney‘s Smokehouse Productions, Chris Columbus‘ 1492 Pictures, Tom Hanks‘ Playtone Productions, Brad Pitt‘s Plan B Entertainment, Jay Roach‘s Everyman Pictures, Brett Ratner‘s Rat Entertainment, Julia Roberts‘ Red Om Films and Ron Howard‘s Imagine Entertainment.

Karan Johar‘s Dharma Productions and Shah Rukh Khan‘s Red Chillies Entertainment finalised an arrangement with the Murdoch owned Fox studios in the middle of the year for the then under-production My Name Is Khan.

Under this, Fox Star Studios would be marketing and distributing the film in India, while Fox Searchlight Pictures (which was responsible for the marketing of Slumdog Millionaire and Avatar) would handle the American release. US major studio Twentieth Century Fox would coordinate the release outside the US and India.

The real biggie was the winning of globally renowned awards by Indian talent – namely AR Rahman, lyricist Gulzar and Resul Pookutty. Rahman pocketed so many awards for his music and songs for Slumdog Millionaire that he probably has lost count of them.

Two Oscars (one jointly with Gulzar for the song Jai Ho), a BAFTA, a Critics Choice Award, a Golden Globe, and three Grammy nominations, among several others. Pookutty, on the other hand, walked away with a Golden Globe and a BAFTA award for his involvement in the film as a sound engineer.

2009 was the year when the global financial turmoil took its toll on Bollywood, forcing production houses to scale back. Adding to its woes were the general elections, cricket bonanza IPL which forced audiences to stay glued to their TV sets, and the multiplex faceoff between exhibitors and distributors.

The second quarter between April and June was rocky. First, were the general elections which were held in five phases between 16 April and 13 May when people were busy with electing a new government. Naturally, people avoided going to the movies.

Then there was a two-month multiplex strike from 4 April to 5 June that witnessed a virtual drought of movies. Though single-screen theatres remained open, films released in that period were hardly worth a mention.

IPL season 2 played between 10 April and 29 May was shifted to South Africa because of the elections but that did not deter cricket buffs who watched the matches late in the evenings and into the nights. Result: footfalls in theatres for the evening and night shows dipped drastically. The swine flu scare also added its bit to keep moviegoers away.

“Last year has been a tough one because of a couple of reasons. First, for three months there were no releases which caused a dent and a lot of movies bunched up that further ate into one another‘s revenues. Then, because of the abundance of movies, audiences declined,” observed UTV Motion Pictures CEO Siddharth Roy Kapur.

Estimates are that about 140 films were released during the year. Attempts at releasing differentiated cinema were made with titles such as Delhi 6, Luck By Chance, DevD, Quick Gun Murugun, Rocket Singh, Wake Up Sid among many others. But they failed to strike moviegoers‘ fancy and did average to poor business at the box-office.

Even star power did not help: the Akshay Kumar starring Chandni Chowk to China, Blue, Kambakt Ishq, Tasveer left the cash coffers relatively empty. As did Dil Bole Haddipa (Rani Mukerji, Shahid Kapoor), Luck, All The Best (Sanjay Dutt), Kaminey (Shahid Kapur), What‘s Your Raashee (Ashutosh Goawariker director), Aladdin (Amitabh Bachchan) and Main Aur Mrs Khanna (Salman Khan) and London Dreams (Salman Khan). No amount of fancy cinematography, visual effects or involvement of international artistes such as Kylie Minogue could save the much hyped and big budget Blue.

Says trade analyst Amod Mehra, “For some years now, the concept of a ‘media hit‘ has come in, and so Dev D, Wake Up Sid and Kaminey were termed as hits, though the numbers just did not add up.”

According to Indiantelevision.com only four films – apart from the biggy 3 Idiots– could be termed successes: New York, Ajab Prem Ki Ghazab Kahani, Wanted and De Dana Dan.

In trade parlance, a super-hit must gross at least thrice the money for which it has been sold. This year, only 3 Idiots, besides two Hollywood films 2012 and Avatar could be termed super hits.

It may be noted that the year 2008 had seven blockbusters while 2007 and 2006 tied with six grossers each.

On a cost-to-profit ratio, 3 Idiots and and Yash Raj Films‘ New York did well. On the footfalls front, Wanted, the Hindi remake of the Telugu blockbuster Pokkiri, took the lead, especially at single-screen theatres.

Other films like Paa, All The Best, Raaz- The Mystery Continues and Wake Up Sid did average business. The Hindi version of Oscar winner Slumdog Millionaire managed to make a small profit while the English one fell flat.

Yash Raj Films and Eros Entertainment came out with four films each in Hindi of which all bombed or did average business at the box-office.

On the film production front, film making companies like Studio18 desisted from releasing any films, focusing instead on cleaning up their acts while others slowed down their production schedules.

Eros reached a milestone when its Marathi film Mee Shivaji Raje Bhosle Boltoy set the cash registers ringing. It was the overseas distributor for De Dana Dan that dished out commendable business.

In the period of financial woes, satellite movie channels and filmed entertainment owners found a business model in syndication. The big deals swung during this period were movies from UTV and Eros. A few outright purchases were also made by Sony, Star and Zee Group.

Multiplexes, who will have to dish out more towards content cost in relation to their revenue share after their new pact with the producers, have been bruised for two straight quarters in the fiscal. But with Bollywood churning out a few hits towards the end of the year, the plexes are sitting happy and expect revenue buoyancy in the last two quarters of the fiscal.

The industry will have to face challenging times in 2010. Single-screen theatres have not done enough to attract audiences. As far as multiplexes are concerned, rising ticket and food prices have meant that moviegoers are becoming choosy about the film they would like to spend to watch.

Hence, it is quite likely that the era of many blockbusters in a year might well be a thing of the past. The industry is likely to see fewer big hits, some releases with minor profits, some breakeven and most that will possibly bomb.

Additionally, film makers will also have to take a hard look at costs. The trend towards multi-star films, rising star (whether in front of the camera or behind) fees, high marketing investments have made recoveries from ticket sales extremely difficult. Of course, they will also have to take care not to bunch releases close to each other; something which could prove difficult, though not impossible.

Observers believe 2010 could prove to be a landmark year for Bollywood internationally. A lot will depend on how My Name is Khan does at the box-office globally. If the international distribution experiment by Fox delivers for the US studio, it could well pave the way for Bollywood to break into Hollywood film audiences.

January 23, 2010
HITS a gain but government mum on FDI hike in 2009

With India having touched the monumental figure of 512 in terms of television channels including 249 news channels, the Information and Broadcasting Ministry pushed the panic button towards the end of 2009, asking the Telecom Regulatory Authority of India (Trai) to study how many channels can be permitted in the country.

As a follow-up, the Government has with immediate effect suspended receipt of new applications for permission to uplink television channels from India and downlink channels to India until the regulator submits its report on spectrum availability.

In an order of 18 January, the Ministry said “it has been observed that although improved technologies have resulted in better utilization of the available spectrum and transponder capacities, the spectrum and transponder capacities for satellite TV channels are not unlimited. A need is felt to revisit the present policy for uplinking and downlinking with respect to the approach towards grant of permission including the eligibility criteria and the terms and conditions of the permission.”

Early in October 2009, I&B Minister Ambika Soni had written to Trai Chairman J S Sarma to examine issues relating to expansion of private television channels in the country. The Minister asked the Authority to examine ways of checking the financial viability of parties that apply for setting up news channels in the country.

However, Soni on 7 December denied in Parliament that the directive to Trai to examine the status of television channels in the country implied any plans to curb the growth of the sector. She said the study to examine the maximum number of channels that could be telecast was being carried out in view of spectrum constraints.

“The government is surely not going to shut the door on the growth of TV channels in India. But there is a logistic problem and the government has to sort it out. Some of our growth plans may be temporarily upset,” says the head of a broadcasting company on request of anonymity.

Meanwhile, the I&B Ministry is also keen that the Broadcast Services Regulation Bill that is pending finalization for about three years should sail through and provide for an independent regulator and a Content Code.

A senior Ministry official told indiantelevision.com that a task force had been set up under the chairmanship of the Secretary in the Ministry, Mr Raghu Menon, and had already held a few internal meetings, The task force – which comprises representatives from the Indian Broadcasting Foundation, the Broadcast Editors Association, and the News Broadcasters Association among others – would now meet stakeholders including consumers, representatives of the print media, civil societies, and editors “to understand their concerns.”

“Self-regulation has some limitations,” the official added without elaborating, while referring to the Content Code and the Regulatory Body formed by the News Broadcasters Association.

It was expected that this task force would complete its work by March this year. The official said the issues under discussion were not merely content, but also quality of service, carriage fee, service charges and so on. Thus, the entire responsibilities that the independent regulator would have to bear would be finalised.

However, the Cable Operators Federation of India has challenged the constitution of the Task Force on the ground that those sought to be regulated cannot adjudicate on the kind of regulation the government can impose.

Meanwhile, six State Monitoring Committees and 67 District level Committees have been constituted to review and deliberate on the litany of complaints received by authorized officer or take suo motu cognizance of violations transmitted and re-transmitted in the local channels.

Over 130 Advisories/Warnings/Orders were issued to various TV channels for violation of the Programme and Advertising Codes prescribed under the Cable Television Networks (Regulation) Act, 1995 and rules framed thereunder.

Interestingly, many of the notices issued during 2009 related to reality shows like Big Boss on Colors, Pati Patni aur woh on NDTV Imagine, and Sach ka Saamna on Star Plus, apart from some for popular series like Bandini on NDTV Imagine and Balika Vadhu and Na aana is des Laado on Colors, and most of the others for the content of commercial advertisements.

A total of 77 private satellite TV channels were permitted to uplink/downlink under the uplinking and downlinking guidelines, taking the number of general entertainment channels to 263. Permission has been given to set up nearly 75 teleports.

In comparison, there were 417 private channels (357 uplinked from India including 197 news channels) and 33 Doordarshan and Parliamentary channels in 2008.

Trai had earlier issued a consultation paper on restructuring of the cable sector, and is understood to be working on a deadline since cable operators have not been responding to the questionnaire placed by it on its website.

After obtaining the Union Cabinet‘s approval to issue policy guidelines for Headend-In-The-Sky (HITS) operators, the guidelines were announced on 26 November 2009. Being a digital delivery mode of distribution, HITS would speed up the process of digitalization of cable services located in non-Cas (conditional access system) areas of the country.

Though the country failed to make much headway in the area of IPTV despite the Ministry having rushed through amendments in the downlinking guidelines for this segment in September 2008, this was attributed to the slow pace of broadband growth and to the strong penetration of cable TV and growth of DTH. IPTV operators also complained that there was very little clarity provided by the government on content issues.

Media companies are hoping that the government will hike FDI (foreign direct investment) limit and come out with more liberal policies in 2010 to fuel the sector‘s growth.

January 21, 2010
A blank in 2009, wait for FM radio policies this year

Promises, more promises, and no action. That is what the private FM radio operators felt as the government blanked out any reforms in 2009 that would have fuelled growth in the sector.

Want Phase III expansion? Wait for 2009. Want a hike in foreign direct investment (FDI)? Will take time to study the Trai recommendations. Want to broadcast news? Can‘t tell now.

Private FM radio operators, though, go into 2010 with a lot of hope that the door will open for more liberal policies. They don‘t forget the words of Information and Broadcasting Minister Ambika Soni at the World Economic Forum‘s India Economic Summit in November 2009: that a note is being finalised for the Cabinet to recommend an increase in FDI limit and allowing Akashvani-sourced news on private FM radio channels.

The Phase III of FM radio expansion policy, deferred due to certain issues including multiple frequencies and royalty for music, is expected before the fiscal ends. It will cover 92 cities, according to the plan drawn up by Trai.

A massive infusion of capital will be required as the national footprint expands into smaller towns. Trai has recommended that the FDI be hiked from 20 per cent to 49 per cent, but the government is yet to confirm on this. Funding will continue to hound the sector if the government does not spell out more liberal policies in 2010.

The government is particularly not happy with the slow growth of community radio. “Community radio can change the face of local broadcasting. But the growth in this segment is disturbingly slow despite adopting a painless procedure for obtaining licences to operate community radio stations,” says a senior I&B official.

The government is organising consultation workshops in different parts of the country to increase awareness of the advantages of local radio stations. Beginning with Rajasthan (Tilonia) in November 2009, a series of workshops have been held in Meghalaya (Shillong), Haryana (Faridabad), Madhya Pradesh (Chanderi), and Tamil Nadu (Tiruchendur) before the year closed.

A workshop had also been held earlier this month in Kerala (Wayanad), while four others planned so far are in Karnataka (Budhikote), Maharashtra (FTII in Pune), Uttar Pradesh (Allahabad), and Uttarkhand (Tehri Garhwal) before the end of this fiscal.

A total of 48 Community Radio Stations are presently functioning in 16 states and Union territories (42 from educational institutions and six from non-governmental organisations). Twenty letters of Intent have been issued in 2009, taking the total to 189 LoI so far. A total of 584 applications, including 240 applications from educational institutions, have been received from various organisations for setting up CRSs. While 79 had been rejected, a total of 316 applications are under process.

The game-changing year for FM radio could be 2010. Says ENIL chief executive officer Prashant Panday, “I am quite sure that 2010 will be known as the year of radio. Phase III policy of radio reforms will come. And by 2011, the radio industry could start offering a serious alternative to regional print publications.”

January 18, 2010
GEC 2009: Changing trends and confused leadership

Year 2009 shall be a year to recall…if not for all, at least for the Hindi general entertainment channels!!!

Even through the recession fever, and the debacle of three channels, the Hindi GEC genre has roared to an eleven per cent growth over the previous year. According to Tam data for Hindi speaking market (HSM), the share of Hindi GEC, which stood at 34.59 per cent in 2008, has moved up to 38.39 per cent in 2009.

Despite a strong cricket calendar, audiences batted for entertainment content on the GECs. While daily soaps generated interest with their varied range of focus, reality content brought in male and younger viewers.

The fragmentation, led by Colors, helped the Hindi GEC ad market to grow. Says Zee Entertainment Enterprises Ltd (Zeel) chief revenue officer Joy Chakraborthy, “We expect the Hindi GECs to take away Rs 24 billion in ad revenues during FY‘10, up from Rs 19 billion a year ago.”

A more conservative estimate would put the Hindi GEC ad pie at Rs 23 billion, miles away from the competing genres in the broadcasting space.

The genre did not just see ‘masala‘ content but also twists and turns in the ratings turf as Colors overturned Star Plus‘ nine-year monopoly to stay at the top.

Also, with recession being the talking tale for ‘09, the general entertainment space faced hiccups galore. And yet with them came intelligent designs that broadcasters and markets corroborated to fight back the downturn plague.

So how did the genre fair in the calendar year 2009? What were the major trends? How did the Top 3 channels – Colors, Star Plus and Zee TV – play the game? Did the economic downturn hamper growth plans? Read on…

A Bird‘s eye View

A major part of the year saw a raging ratings war between Colors, Star Plus and Zee TV as the channels used all the ammunition from their armoury for the great GEC battle. Be it staple fiction shows, reality, big movies, scheduling, marketing and promotions!

Source : TAM

Click here to zoom

As the GEC space opened up and audiences got more choices in terms of fresh programming and more channel options, the game was set to change in the GEC room with viewers asking for more. Competition increased as contenders for the top spots transformed as well.

Also, in the month of May, Sony Entertainment Television (Set) overhauled its programming. During the course of the year, Sony‘s old horses – CID and Aahat – delivered and the channel moved from 80 to 180 GRPs to occupy the fourth spot.

NDTV Imagine fought on and came up with Rakhi ka Swayamvar to grab its peak ratings. The channel gained in mindshare though in the ratings ladder it still has a long way to go.

Meanwhile, Sab, Sony‘s sibling channel, donned the family comedy hat and started experimenting with different strands within the genre to surge ahead of Star Plus‘ second GEC Star One.

The year also saw the death of Zee Next, while Real (a Turner -Alva joint venture) and 9X (launched by Indrani Mukerjea and Peter Mukerjea with a promise of nine times more) await a verdict on their existence.

Opines Lodestar Universal COO Nandini Dias, “Despite two channels almost on the verge of closing down and a couple of channels not doing well at all in 2009, the genre saw a growth in its market share. This is because the gap has been compensated by the top 3-4 channels in the genre, which have performed fairly well during the year.”

Surge in Reality Quotient

Unlike 2008, when television predominantly targeted female viewers with high-voltage drama soaps, 2009 saw a huge surge in reality content in the overall GEC programming. And the format, coated with not just drama but controversies too, had an impact beyond its ratings. Result? Not just women but men too were driven to the genre. The share of reality shows, which was 4.3 per cent in 2008, increased to 6.9 per cent in 2009, a jump of almost 60 per cent (Tam data, HSM, for top five channels).

Source : TAM, Top 5 GECs

Elaborates Dias, “Unlike 2008, when the shows were more about Kyunki‘s and Kahani‘s that were mainly woman skewed, 2009 saw the launch of a slew of shows, especially reality that targeted both the woman and the men audience equally like Sach Ka Saamna and Khatroan Ke Khiladi.”

Adds Sony Entertainment Television business head Ajit Thakur, “2009 saw GECs experimenting with non-fictions by launching reality shows other than the usual singing and dancing format.”

Thus, while viewers were subject to some new and interesting formats like Rakhi Ka Swayamwar, Sach Ka Saamna, and Pati Patni aur Woh, there were a few that failed to catch attention like Perfect Bride and Iss Jungle Se Mujhe Bachao.

Not to forget, some old formats did get bigger in their sister seasons like Bigg Boss, Khataron ke Khiladi, India‘s Got Talent and Entertainment Ke Liye Kuchh Bhee Karega.

Additionally, dance-and-music-based reality shows too saw their ultimate high points on Zee TV with Dance India Dance and Saregamapa (with kid anchors).

Says Star India EVP marketing Anupam Vasudev, “In order to appeal to urban viewers, we saw differentiation and innovation in the reality space. And thus, apart from the regular singing/ dance based shows, this year saw more experimentation with shows which created buzz for the channel and attracted a lot of eyeballs.”

The Fiction Saga

Well, the year surely reaffirmed the fact that fiction shows are the staple diet for Indian audiences. Tam data suggests that the share of daily soaps in GECs remained 60.4 per cent in 2009. The trend, however, shifted away from the saas-bahu sagas and the K-series to more meaningful and issue-based programming.

“Television content has moved away from the unrealistic and over-the-top depiction of stories and characters. The focus is now on realism, socially relevant themes, positivity and family values,” suggests Vasudev.

The trend was started by Colors and picked by all. Earlier in an interview with Indiantelevision.com, Colors CEO Rajesh Kamat had said, “There was a fatigue built in for the kind of soaps that were running on Indian television. We made disruptive and differentiated content our main plank. We were willing to take a calculated risk; our concepts were different and on the riskier side. But they worked.”

Zeel COO and Zee TV business head Nitin Vaidya notes that Indian television saw an interesting turning point with a different kind of story-telling that emerged with newer shows. “Variants like Balika Vadhu and Agle Janam Mohe Bitiya Hi Kijo brought in an all-new flavour to the primetime,” says Vaidya.

Source : TAM

Click here to zoom

The new breed of fiction shows saw historic high points in terms of ratings. The top highest rated fiction shows in the year, as per Tam, were Balika Vadhu (10.2 TVR), Uttaran (9.6 TVR), Bidaai (9.5 TVR), Yeh Rishta (8.1 TVR), Pavitra Rishta (7.1 TVR) and Naa Aana Is Desh Laado (7 TVR).

Avers Vaidya, “With subjects ranging from those of historical importance and social awareness to differential talent, Zee TV‘s shows have been appreciated and acknowledged across the nation. Each of our new properties yielded results and there was no show that had to be withdrawn during the year.”

Adds Vasudev, “With competition heating up and the saas-bahu image that Star Plus had to shake off, we came up with a host of innovative, fresh and creative content to entertain our audiences this year.”

Movie game heats up

For a major part of the year, movies acted as a differentiator for the leading channel in the GEC genre, adding to the spikes.

The movie syndication model allowed the Hindi GECs to spread their risks as they narrowed the window between theatrical releases and their TV premieres for new products. Explaining the movie syndication model, Dias says, “Unlike earlier days, when buyouts happened for the entire movie, 2009 saw buyouts happening in number of airings as the costs had really shot up during the year. So you saw films like Jab We Met running across multiple channels at the same time.”

Cost corrections happened and the big bets on movies were taken by Colors and Star Plus. Some movies were aired even without breaks, facilitating weekends to see an upsurge in viewership.

It is interesting to note here that post the two-month standstill in movie releases due to the producer-multiplex tussle, Colors ramped up its movie slate and aggressively purchased the first airing rights of many recent releases including Blue and Ajab Prem Ki Gajab Kahani.

Scheduling strategy and break-free content

With competition in full force and consumers moving the stick hard, broadcasters surely did not want to kick their buckets soon. In a bid to maintain a steady presence, many channels reviewed their programme scheduling strategies and also began running break-free content.

For starters, channels began pooling their full content strength onto the 7 to 9 pm band that appealed to the non-metro masses, attracting viewers from smaller towns.

Also, the 9-10 pm content was tailor-made for both smaller towns and metros to bring in an overlap of viewership. Meanwhile, the more urban-centric shows were moved to the 10 pm slot.

The second major change was the scheduling transformation of hour-long episodes. The concept was first sketched by Colors, as the channel asked producers to give a special one-hour episode in a month. The idea was to increase sampling and retain viewership.

The same design ran through Star Plus and Zee TV. “These are tactical steps taken to ensure viewers are retained on the channel and there is a seamless flow of audiences from one slot to another,” says Vasudev.

Vasudev, however, believes that these tactical schemes cannot be sustained for long. “While one-hour specials give channels incremental GRPs, they do not impact much of the viewership in the original slot,” he says.

Star Plus had moved one step ahead and extended their popular shows, Bidaai and Yeh Rishta, to seven days a week. However, as the model was not sustainable, they went back to four days a week.

Says Thakur, “Scheduling of specials is a practice done by GECs nowadays to get a spike. It‘s a stunt, a smart move but isn‘t sustainable in the long run. For five episodes a week, you have to shoot for 210 minutes. You have to shoot 50 minutes daily for such spikes and that isn‘t possible in the long run.”

Ad volume grows

Hitting straight into the economic downturn, there was a huge concern at the beginning of 2009 that GECs would go through an ad slump and rates would tumble. That proved wrong and though rates were under pressure, ad volumes grew.

Says a senior media specialist from a top media buying firm, “FMCG, which accounted for about 38-39 per cent of the total advertising spend on the Hindi GEC space in 2008, moved up to about 50-54 per cent in 2009. It is important to note that FMCG looks at cost efficiency and spends if there is a return on investment. Automobile and telecom sectors were also big spenders and were looking for impact.”

Adds Dias, “With FMCGs primarily spending on the mainline GEC genre along with a growth in the genre share itself, the GEC space has certainly seen growth over others. But it may have been a more polarised growth. In absolute revenues the top three – Star Plus, Colors and Zee TV – have had a much larger pie than Sony, Star One, Sab, and NDTV Imagine. Colors has surely yielded revenues, quite equivalent to that of Star and Zee.”

The market seems to have eased and the last three months of the year have seen a big jump in advertising revenues.

Shaping up in Twenty10

The GEC space can be exposed to pressure points in 2010 amidst fragmentation and stiffening competition. The fight at the top among Colors, Star Plus and Zee TV promises to get bitter. And while Sony threatens to enter the top-rung, NDTV Imagine is readying to shape its destiny under a new owner in Turner International.

“If it is a fight amongst five strong players, then advertisers can make better use of the fragmentation. It is going to be a dog fight. But the GEC genre is set for growth,” says a media analyst.

Agrees Vasudev, “Channels have to outdo themselves in terms of their offerings – leave alone outdoing their competition – to attract eyeballs and to keep them glued to their channel.”

Media experts say advertisers will be willing to pay more in 2010 as the economy improves. “The GEC genre could post 20 per cent ad revenue growth in 2010. Hopefully, we will see clients willing to invest money in brand building. The channels, in turn, will need to reciprocate it with quality programming. Also we are slowly getting a sense that there maybe a fatigue setting in with respect to reality shows. Also believability is reducing. So maybe channels will need to look hard for the next thing now,” says Dias.

As the overall GEC genre grows, Madison Media Group CEO Punitha Arumugam is optimistic that the profitability will also go up. “Since other genres have also started growing, 2010 will not see a very dramatic increase in the GEC genre revenues. The trend, instead, will be a fight over market share and every player will try to grab more eyeballs. But yes, profitability of the channels will increase due to renegotiation of programming and staff costs,” she says.

January 14, 2010
’80 to 180 in 2009. And miles to go…’ -Sony Entertainment Television business head Ajit Thakur

MUMBAI: I still distinctly remember the year 2007 when over a coffee table conversation in London, my friend started talking about Indian Idol 3 and CID and that if we are not watching it, we are missing out on good television. I immediately made it a point to watch Idol and was hooked from the word go.

I remember writing to the producer of the series then on what a great show it was, thanking everyone involved in making the show (I didn’t know anyone at Sony then, for that matter hardly knew anyone in the industry). And an immediate strong bond with Sony Entertainment Television was formed – there is something about the brand that over the years has maintained strong affinity with viewers despite the usual ups and downs… a sentiment many peers echo in the industry.

And when I was asked to write the yearender on Sony Entertainment Television, I felt both excited and nervous. Nervous because I have been around for just six months at Sony (and broadcasting) and the other contributors are industry stalwarts. Excited because it’s been such an eventful year for us and there is so much to share. So here it goes…

We started the year at about 80 GRPs and had slipped to No. 5 amongst the GECs (general entertainment channels). We ended the year at about 180 GRPs and much closer to the top GECs than we had been in the last 12 months. We beat everyone’s expectations including some of our own. And this, when we have unleashed only a part of our strategic plans. So that holds a lot more promises for the year ahead (will come to that in a bit). Through the year we launched a number of shows and every time the audience gave us a fair chance. With some we succeeded, with others we faltered but the overriding Sony Entertainment Television brand equity ensured that we kept gaining from strength to strength.

Through the year we continued to raise the bar on content innovation bringing in fresh, sometimes bold and brave ideas into the rather undifferentiated menu that’s dished out daily. Iss Jungle Se Mujhe Bachao and Dance Premier League were clutter breaking reality shows mounted on a scale never seen before and both created tremendous buzz.

Entertainment Ke Liye Kuch Bhi karega started a new genre of talent shows and popular demand drove us to a second edition within months of the first edition. Ladies Special was one of the most appreciated daily soaps getting rave reviews from almost everyone we know. Baytaab Dil Ki Tamanna hai and Jeet Jayenge Hum dealt with bold social themes.

And we started 2010 with the most differentiated slate of shows from YRF. Whether it’s the coming of age Sci fi thriller Seven or the modern look at matrimonial agencies in Rishta.com or the ultimate cops vs. crime thriller, Powder, or the refreshingly “that could be my story” world of Mahi or the super stars show with a purpose , Lift kara De – each one has set new benchmarks in Hindi entertainment content. Not all of these shows lived upto our ratings expectations but every single one stood out amongst the mass menu pushing the envelope every time.

This was also the year when we revisited our history and brought back shows that have enjoyed tremendous popularity over the years. Aahat season 4 was a runaway success creating a new original programming slot at 11 pm. Comedy Circus 3 ka Tadka definitely had viewers asking for more. Dus Ka Dum continued to be popular in its second season. And yes, the much talked about CID was a key pillar of our plan.

We put together a plan to further strengthen the footprints of the brand which included bringing back the best cases from CID archives as CID Classic Cases as well as announced the CID Gallantry Awards amongst other ideas that we continue to work on. We got an overwhelming response from audience and CID is today amongst the most popular shows on Hindi GEC. After all, how many shows have enjoyed an uninterrupted run for 12 years!

Last but not the least has been our focus on people and sharper audience understanding. In this continuously evolving market and changing audience preferences, we have spent a lot more time understanding whats happening out there. And we are building a team of only the best professionals. In total, 2009 was a year of accelerated growth based on a robust mix of innovative content, focus back on existing properties, fixing basics and building foundations for the future.

The next three years starting 2010 will be about sustainable and profitable growth. We will look to consolidate our position on the back of a formidable content pipeline that we are already building and with a sharper understanding of the ever evolving audience.

There are plenty of opportunities for Sony as we embark upon this journey. The big one is the tremendous opportunity we have on weekdays and with the daily soap launches lined up in the next six months, we are more confident than ever before.

Equally important is the fast growing DTH homes. Early data already indicates that Sony enjoys a proportionately larger following within DTH homes which will be a competitive advantage for us. We also have a growth opportunity by extending our hours of original programming vis a vis the competitive set.

In an extremely competitive scenario, the challenges are no fewer. There are the usual threats from existing competition who are all very formidable as well as newer threats from the emerging entertainment channels like Sab and Bindass. And the biggest challenge will continue to be to never underestimate what the audience demands and deserves.

So is there a GRP or position we have in mind? We do. However, at this stage its suffice to say that we have a plan and a team that is committed to deliver this growth taking Sony Entertainment Television to a leadership position again.

January 13, 2010
‘It’s not money but the idea that conquers’ -ZEEL COO & Zee TV business head Nitin Vaidya

MUMBAI: The beginning of the year 2009 was a huge challenge for us. We took up this challenge with great enthusiasm, confidence and a focused approach. Our aim was to achieve great heights with concentrated efforts without making any tall claims.

Many of our shows gave us positive results in 2009. Two major properties by us last year were, ‘Choti Bahu‘ and ‘Lux Dance India Dance‘.

‘Choti Bahu‘ proved to be a phenomenal success, redefining the primetime band as 7.30 PM and reigning over it, ever since. But this is not the first time; we had also launched ‘Sindoor‘ at the same time in 2006.

Another remarkable success in the non-fiction genre was ‘Lux Dance India Dance‘. Unlike other star-studded shows on competing channels, Lux Dance Indian Dance talks about excellence of talent and creates a platform for that talent.

We always believed that television creates its own stars. For ‘Lux Dance India Dance‘ we adopted our 17-year old formula that stemmed from our longest running show – ‘SaReGaMaPa‘ which makes stars out of common people with exceptional talent. We began our journey to 11 cities, scouting talent, and came back with some fabulous dancers rather than encouraging celebrity participation in reality shows that look fabricated.

The results were for all of us to see with ‘Lux Dance India Dance‘ becoming the biggest dance reality show growing in a profitable way rather than being an unviable business model. Our formats were copied and launched on other channels and we all know what happened to them.

Indian television also saw an interesting turning point with a different kind of story-telling that emerged with newer shows. Our competition launched ‘Balika Vadhu‘ which has an excellent story and brought in an all-new flavour to the primetime. We also launched ‘Agle Janam Mohe Bitiyann Hi Kijo‘ which highlighted the social evil of women-trafficking very strongly and forcefully. This social cause backed up with effective story-telling made ‘Laali‘ a household name.

Another of our shows from Balaji Telefilms, ‘Pavitra Rishta‘, was a great hit amongst the viewers, with the show now becoming the No. 1 fiction show across GECs. The first ever show on satellite television to be shot completely in Delhi, ‘12/24 Karol Bagh‘ was launched by us.

Two other shows that immediately struck a chord with the viewers are ‘Jhansi Ki Rani‘ and ‘Aap Ki Antrara‘. Through ‘Aap Ki Antara‘, we have aimed at creating public awareness about autism & sensitizing the society towards this issue. More than the commercial success of the show, the kind of recognition and respect that it has garnered for itself and the channel, is what we take immense pride in.

Similarly ‘Jhansi Ki Rani‘ was another path-breaker. In times where historical shows haven‘t really done well on television, ‘Jhansi Ki Rani‘ has created its own loyal audience and has been delivering consistently ever since its launch. The success of the show has taken it beyond HSM (Hindi speaking market) with the dubbed version being telecast on our regional channels.

The pressure from the competitors was very high with the who‘s who of Bollywood anchoring some reality show or another across channels. During such times, we decided to introduce Afsha & Dhairya, the youngest hosts on any reality show thus far. Result? They became the most loved hosts on Indian television.

Recession forced us to take some innovative decisions which surely opened up new avenues that went on to become great successes. Another show that got us directly connected to the audiences is ‘Ghar Ghar Mein‘, a low cost, simple game show with families that allowed cameras directly into their homes. ‘Ghar Ghar Mein‘ is the only show on television today which establishes a direct relationship with the viewers. So we see that it‘s not the money that matters but the idea that conquers!

Hence with subjects ranging from those of historical importance to social awareness to differential talent, Zee TV‘s shows have been appreciated and acknowledged across the nation. Each of our new properties yielded results and there was no show that had to be withdrawn during the year.

Steps taken by Zee TV were consciously working towards not just being No. 1 on GRPs but also achieving high profitability. And to achieve profitability, we didn‘t want to compromise on our quality at any cost. We didn‘t succumb to unnecessary pressures of investing money in film stars or creating controversial content. We wanted to be on the top on our terms. It‘s a matter of great pride that the No. 1 fiction (Pavitra Rishta) and non-fiction show (Lux Dance India Dance) across GECs, belong to Zee TV.

It was a year that started with great challenges that led to hope and thereby a promise to ourselves – to top the charts. The real joy and excitement came when we became No. 1 for a week after almost a decade. The challenge this year would be to maintain the high performance and offer exclusive content to our viewers.

Another challenge that holds great value today is the digital scenario which is changing television consumption patterns. On one end of the spectrum is mass consumption pattern of television that is measured by GRPs and on the other is the evolving audience that is migrating from analogue to digital.

Content and communication to match audiences‘ sensibilities is the emerging reality of the digital era. The growth of DTH is phenomenal. It has surpassed the number of declared analogue subscribers and will continue to grow further. Hence concentrating on the existing analogue viewers alongwith the ever-growing DTH viewers will be our core focus in the coming years.

January 11, 2010
‘Crystal gazing in the era of Gadgets and Gadgeteers’ -Colors CEO Rajesh Kamat

MUMBAI: I have a vivid recollection of that day in 1983, when a colour TV came into our house. The entire neighbourhood knew; there was special dinner; and a list of special invitees saw the Delhi Asian Games, in colour, with the family, in the comfort of our living room.

The years that followed are a bit of a blur. Almost like we‘ve led life in fast forward mode. The VCR seemed like freedom, the cable operators ran our lives. eight channel TV‘s got upgraded, Plasma became obsolete and DTH became a reality.

Fast forward to January 2010. And this New Year article is dedicated to crystal gazing the challenges and opportunities that come with a new generation of television watchers and their gadgets. I forecast four significant changes in the future.

In the short and medium term, I see two trends.
First a viewer who‘s being exposed to world class production standards and who‘s upgrading to LCD and HD. Transmission quality and Cable woes are slowly being stomped out by digitization. It‘s time to start waking to the reality of this customer in the way we build our content. His tribe will only grow.

Second this “High-Definition Tribe” is actually symptomatic of changes that are far deeper. Changes in the way we distribute and in the way we access TV. Digitisation will yield choice. It gives the viewer a “real” option to buy what he wants to watch. It will make niche content viable and mass content work harder.

My third forecast lies in the slightly longer term: Convergence. TV, the computer and telephony converging onto the same device. On the face of it, this can be only but good news. It appears to roll back the years TV lost out to viewers who suddenly discovered entertainment options outside their homes. But just below the surface lies a serious set of challenges.

TV‘s greatest friend soon is its greatest competition. Because not only will the internet constantly churn entertainment options, but it will also continuously redefine the benchmarks on interface and interactivity. Now these are challenges, we possibly haven‘t even begun to think about. After all, the internet is all but a young boy celebrating 50 million people. And broadband is a baby in comparison. We can‘t be wrong then in saying IPTV is only but a fashionable thing to write about. I urge you to reconsider.

But the story doesn‘t end here, does it? My 4th guesstimate is already a reality waiting to hit our shores: DVR technology. A reality in the western world. American‘s are increasingly choosing to skip advertising even at the cost of differed viewing. Actually research shows, even time shifting is a real phenomenon. And sitting in India, we‘re only a few leaps in infrastructure away from this reality.

So what does this mean? We may well be running our lives smarter and more competitive in 2010. But not really differently. I urge you to sit up and strain your ear to that faint rumbling that‘s going to be a storm. What seems like a future possibility now will soon be a generation chasm.

In the short term, young gadgeteers will demand better viewing experience, interactivity and “real choice”. In the medium term, these young gadgeteers will yield more mass audiences that are internet enabled. Distribution platforms and revenue sources will be rethought. And content will be even more pressured to be led by careful segmentation and preferences. In the long term, at the very least, viewers will be self generating, toggling and searching content. But that story, I will leave for my year ender in 2019 (or much sooner).

Let 2010 be the year we acknowledge the inevitability of the future.

January 9, 2010
‘The GEC market has disintegrated into smaller units with niche regional preferences’-By Star India EVP marketing Anupam Vasudev

MUMBAI: The Hindi general entertainment channel (GEC) space is constantly changing and churning out fresh opportunities.

In my opinion, it has been a year of shows rather than channels in spite of what everyone would like to say. The viewer has been totally spoilt for choice with the wide and eclectic array of entertainment options being laid out in front of him / her to savour and to get hooked on to. Channels have had to outdo themselves in terms of their offerings – leave alone outdoing their competition to attract eyeballs and to keep them glued to their show / channel. As viewership gets fragmented, diversification of content on TV is the need of the hour. It is an extremely challenging scenario that a broadcaster faces today.

Also, the market has disintegrated into smaller units with niche regional preferences. Even the share of Hindi general entertainment within the “Hindi Speaking Markets” vary considerably. One extreme is represented by the Hindi belt markets like Madhya Pradesh and Uttar Pradesh which are heavy Hindi GE viewers and the other extreme is represented by markets like West Bengal and Maharashtra which are heavy regional consumers. We saw this as one more opportunity to create higher level of viewer satisfaction.

With competition heating up and the saas-bahu image that Star Plus had to shake off, we came up with a host of innovative, fresh and creative content to entertain our audiences this year. The channel also decided to increase its physical connection with our audience by creating consumer experiences out of our programmes.

Let me share with you some examples of this year‘s programme launches and corresponding activities we undertook. We started the year with the launch of ‘Yeh Rishta Kya Kehlata Hai‘. Star Plus had the mega launch in the exotic gardens of Rambagh Palace, Jaipur. 50 couple winners, which were a result of a compatibility test, took their marriage vows for a second time in celebration of their love for each other. This programme topped the TRP charts with its sustained performance week after week! Upholding traditional Indian beliefs and value systems, the show soon captured every Indian household‘s fancy, becoming the most promising primetime show on Star Plus after the departure of the ‘K‘ series from the channel.

With the launch of ‘Sabki Ladli Bebo‘ in April 2009, Star Plus announced its annual property Ladli Week Celebration where the brand partnered with the KC Mahindra Educational Trust NGO- to start Project Nanhi Kali.

A fund raiser initiative called Star Plus‘ Project Laadli celebrated the Girl Child Week from 13 – 17 April and received tremendous response from the viewers and media. Children from Project Nanhi Kali had fun spending time with their favourite stars – Bebo (Shiv Shakti) and Kuku Narang (Kanwaljeet) from ‘Sabki Laadli Bebo‘ on the sets.

Little girls from Nanhi Kali had the opportunity to eat fun meals at McDonald‘s with Akshara (Hina Khan) from Yeh Rishta Kya Kehlata Hain, Shaurya (Saurabh Pandey) and Suhani (Sriti Jha) from Shaurya Aur Suhani. We set up Signature Walls for consumers across 52 Big Bazaar and 21 Sia Jewellery outlets in India. These received more than 51,000 messages during the Laadli Week Celebration, out of which more than 30,000 viewers contacted Nanhi Kali to contribute for this noble cause!

In June 2009, came ‘Star Vivah‘ – the first ever matrimonial show on Indian television for all those searching for their ideal life partner. ‘Star Vivah‘ provided the biggest platform for prospective brides and grooms to find their life partner, thus simplifying the process of the most important and sacrosanct decision of one‘s life i.e. marriage. The show took a huge social step by propagating an anti-dowry stance and promoting gender equality on the show. All participants were dissuaded from exchanging dowry. The show also featured socially oppressed people such as widows, handicapped individuals and divorcees, hence giving them a chance to start their lives afresh.

August 2009 saw Star Plus launch an emotional, inspiring & heart warming chat show ‘Tere Mere Beach Mein‘ with ace choreographer turned director, Farah Khan. This was not your regular celebrity chat show about fame and stardom but about their lives away from the arc lights!

Digital teams created online bidding and auction with Ebay. On the show celebrities gave away various items from their personal favourites for auction and the proceeds were shared with an NGO Sneha. Viewers in large numbers participated to bid for these items on Ebay. The show garnered a whopping 3.3 TVR with its opening episodes, becoming the only television chat show to open with such numbers!

Star Plus started a movement with the second season of ‘Aap Ki Kachehri‘ with the intention to empower viewers taking the message of “television se zindagi tak” literally. We organised a ‘Walkathon with Dr Kiran Bedi‘ in Indore, Ahmedabad and Lucknow along with eminent social workers, educationists and media personalities. In Mumbai, we tapped the life line of the city – the local trains – to create awareness of the “Aap Ki Kachehri” movement. This train ride with Kiran Bedi attracted a huge number of viewers as they joined her in the movement impromptu.

In October 2009, ‘Aap Ki Kachehri‘ took another meaningful step forward by launching a path-breaking CSR initiative ‘Aap Ki Kachehri – Aap Ke Dwaar‘ in Delhi and Lucknow. This involved a programme that trained people in dispute resolution; trained NGOs in dispute resolution and effective mediation with the aim to work towards building a more peaceful and productive society.

The second season of ‘Baa Bahu aur baby‘ was launched in October 2009 with baby‘s wedding – the biggest wedding on Indian television. The entire cast traveled across key cities in Gujarat to collect wishes for Baby. Star Plus dressed up Ahmedabad to welcome Birju‘s baraat – a grand, visual treat that completely floored people. Baa, Pravin Bhai & Gattu (prominent characters from the show) greeted Birju atop a decorated horse. The event was accompanied by music and many Ahmedabadi baraati‘s dancing away reliving the experience, which was followed by Baby & Birju exchanging garlands. This was the first ever fiction show to be back in season two on viewer demand! The second season of the show also gave consistent performance on the charts.

A large percentage of India resides in the villages and towns and many of them come to our metros to earn their livelihoods. Taking cognizance of this fact, Star Plus came up with ‘Tere Mere Sapne‘ in October 2009 – a story depicting the journey of one such migrant who steps into a challenging new world and how he endeavours to come to terms with a new life and city. To connect with our audience, Sarju, the protagonist of the show, visited Lucknow where he learnt auto driving, cooking and vegetable selling – skills that he will need to survive in the tough city of Mumbai. In Delhi, Sarju visited a migrant colony to learn about their difficulties and how they cope with it.

The show touched the hearts of viewers and it received the highest recall in its launch week amongst its target viewers as they were able to relate to the concept, culture and emotion of the protagonist!

With ‘Sach Ka Samna‘, Star Plus took programming to a new level. It completely floored audiences as they didn‘t know what to expect from this show! We created platforms for people to show courage and bare their soul by speaking the truth through a medium that is visually impact full. We, therefore, created Saccho Ki Toli which by its movement and appearance in high catchments areas gained momentum and buzz.

21 promoters wearing pure white long robes with numbers 1-21 on their robes and a funny ‘Sach‘ about them behind their back moved in groups at VT station, Mumbai and lined up in chronological order. Rajeev Khandelwal, the host of the show, made a public appearance with the ‘Saccho ki toli‘ and invited people to come forward, take a T-Shirt, write their truth and wear this T-shirt to join the ‘Saccho Ki Toli‘. ‘Sach Ka Samna‘ proved to be the first Indian reality show with a launch episode gaining 4.2 TVR, the only reality show to have received such number in last two years. The show maintained a constant high through the season on the TRP charts in the late primetime segment.

With the recently launched ‘Pratigya‘, Star Plus‘ newest protagonist Pratigya gathered support from hundreds of women who joined in a Human Chain organised at Nariman point as a part of Star Plus‘ ‘Meri Pratigya‘ campaign. This Human chain also attracted protagonists from Star Parivaar who stood together and pledged their support against disrespect and mistreatment of women.

At Star Plus, we‘ve had great success with industry-defining shows like ‘Yeh Rishta Kya Kehlaata Hai‘ and ‘Sach Ka Saamna‘ and are ending the year on a high with our recent launches – ‘Pratigya‘ and ‘Music Ka Maha Muqabla‘.

Going forward, Star Plus is going to further raise the bar in programme innovation and will ensure that its audiences will have the best that televised entertainment can offer.

January 8, 2010
Cricket has no losers in 2009

MUMBAI: The Indian Premier League (IPL) emerged as a clear winner in 2009, but fortunately for sports broadcasters cricket had no losers. The three formats – Twenty20, ODIs and Tests – continued to have their relevance, particularly when the game engaged India.

In a year hit by severe slowdown, sports broadcasters posted growth and raked in an advertising revenue of Rs 11 billion. The heavy load of sporting events in 2010, including T20 World Cup, the soccer World Cup and the Commonwealth Games, holds out more hope for sports broadcasters in India.

Multi Screen Media (formerly Sony Entertainment Television) collected close to Rs 4.5 billion from the IPL telecast, setting the ball rolling for the tourney to emerge bigger. The company is already targeting an advertising revenue of Rs 7 billion this year, an almost 50 per cent jump from the second edition of the IPL.

The IPL saga, in tune with the BCCI‘s (Board of Control for Cricket in India) propensity to extract the maximum value from its properties, had many twists and turns during the course of the year. MSM had to get back the broadcast rights from the cricket board after settling to pay more. The deal, running through till 2017, was signed for $1.6 billion and includes World Sport Group‘s global and other media rights.

The IPL also had to seek temporary shelter in South Africa as the tournament window coincided with the general elections in India. Though this involved more costs, the brand got an international exposure. TV ratings stayed high with Max, the telecasting channel, enjoying a TVR of 4.2 from the event.

Says Lintas Media Group Planning Sciences director Atrayuee Chakraborthy, “IPL2 in the first 20 days had captured a significant 82 million viewers as compared to 85 million in the year-ago period. TVRs had dropped because of reduced time spent as quite a few matches were scheduled on weekdays and in off-prime time. But, as per our estimates, a significant 26 per cent watched IPL2 matches out of home, which can‘t get reflected in TV household panel ratings of Tam.”

The IPL will get more exposure in 2010 with Dubai-based Dar Capital picking up the theatrical rights. The third edition of the tournament will be screened in cinema theatres across the country.

While the IPL has done well, the Twenty20 format does not always work. A case in point is the Champions Twenty20 League. ESPN Star Sports, which had paid $975 million for the rights, would not be happy with the ratings that the first edition got. Luckily for ESS, the Twenty20 World Cup did better with a rating of 3 although India exited early. Even the Champions Trophy did not do too badly with a rating of 1.6.

Essel Group‘s Indian Cricket League (ICL), IPL’s poor rival, disappeared from the act. In 2009, the ICC denied the ICL official recognition. The ICC said the Board went through the application carefully, including assessing it against the criteria within the ICC regulations for approving such events. It also maintained that the event did not meet its criteria for approving as ‘unofficial cricket’.

The BCCI, which had been waiting all along for this decision, then allowed ICL players back into its fold if they severed ties with the rebel league. Several months later, ICL responded by sending a legal notice to the ICC, BCCI and the English Cricket Board. If the ICC is toeing the BCCI‘s line, then one cannot put too much blame on them as over 80 per cent of the game‘s revenue comes from India. Financial reasons were behind the English Cricket Board’s decision to scrap plans for P20. Australia, New Zealand and South Africa are, however, looking at a joint league from 2011.

Meanwhile the ODI and Test Cricket formats are holding their ground, at least when it comes to bilateral series featuring India.

As far as television rights are concerned, Nimbus protected its turf by renewing its deal with the BCCI for another four years. The new deal is said to be worth Rs 20 billion but the rights do not include mobile and the Internet. The broadcaster also has to submit a bond by January 2010.

ESS, meanwhile, renewed its rights for the English Premier League. Also, Ten Sports extended its deal for the Uefa Champions League for three more years.

New channel launches

On the back of the IPL, MSM is planning to launch a sports channel. With major cricket properties being locked up for the long term, it remains to be seen how MSM can build a channel with the IPL and New Zealand cricket rights.

The sports broadcasting genre could get at least a couple of new entrants in 2010. ESPN Star Sports is waiting for permission to launch a sports news channel. Taj Television, meanwhile, has sought permission for three more channels including a Golf channel.

Overdose of cricket can have negative impact

Cricket’s organising bodies like the BCCI will have to decide on how much cricket is healthy and where to draw the line. An overdose can kill the golden goose.

Advertisers are preferring bilateral rather than tri-series as the ratings are more consistent in such tournaments. Says Chakraborthy, “Test cricket is still effective in building brand saliency among the hard core cricket fans. However, the Twenty20 format allows you to target a far wider audience including the family. As the IPL gets bigger, it will suck out more money from sports advertising. Companies who spend the most on cricket come on the IPL. So while the number of categories that invest in cricket has grown over the past couple of years, other tournaments could find it hard to get in similar big outlays from other companies who do not spend as much on cricket.”

A case in point is what happened with the BCCI team sponsorship rights. The board was forced to extend its deal with Sahara for another six months after the tender that it floated failed to get a single bid. The BCCI was looking at a price of Rs 30 million per match while Sahara is currently shelling out Rs 20 million a match.

Some analysts say that the board went overboard in the price it was asking for. But with so much cricket happening, sponsors‘ budgets are getting cleaned out quickly and there is small space to make substantial investments in other properties.

So what are the challenges that the bat-and-ball game faces in its aim to get in more ad revenues? Chakraborthy says that simple FCT consumption and logo exposures in cricket may not help in the long run. “Brand message integration and audience engagement are the other aspects that the game needs to crack to garner ad revenue as they move forward,” she adds.

And what about other sports? The biggest beneficiary seems to be soccer as the appeal is spreading beyond just Goa, Kerala and West Bengal. Viewership of this sport in the metros is on the rise and it is becoming an effective medium to reach the upper class male particularly for events like the English Premier League and the Uefa Champions League. However sports like tennis and Golf are still niche in nature.

The Piracy Menace

Another issue that is concerning stakeholders is that of piracy. The BCCI, along with the other boards, has set up a consortium to fight against it. The areas that need to be addressed are trade mark infringement, Internet piracy and footage violation.

Sports broadcasters, in particular, have a grouse against news channels who they feel repackage footage beyond what should be allowed. The cricket boards are also looking to work with the Sports Rights Owners Coalition (SROC) to form a legal framework for the different boards.

2010 will see the unveiling of cricket‘s next six-year plan of fixtures, crucial to the survival of formats like Test cricket.

January 4, 2010
‘Free sports channels from Trai pricing’-Taj Television COO Peter Hutton

MUMBAI: 2009 was the year to be in a different industry. ESPN-Star‘s billion dollar investment in cricket‘s Champions League made the Dubai property market look a safe bet. The IPL riches were diverted into the pockets of South African travel agents. In the ICC‘s showpiece event, India‘s world champion 20-20 team batted so slowly they turned into the No. 1 Test team. India‘s hockey team fell so low, the world rankings needed a second page. The Commonwealth Games promises India Gold medals for bad publicity and even WWE‘s Khali lost whatever it was he‘d won the year before.

Add that to world economic woes, rampant news channel piracy, illegal websites, Pakistan cricket, rain in the West Indies and having to move house, and you‘ve got my year to forget.

On the positive side, 2010 is the year of the big event for Indian sports channels. The Hero Honda hockey World Cup, the IPL, the ICC 20-20, the FIFA soccer World Cup, the Commonwealth Games, India‘s tour of South Africa and the Asian Games all tumble after each other.

The advertising incomes are looking healthier, DTH numbers are growing month on month and the range of big non cricket events can help change the perception that only cricket delivers value.

2009 was the year when hardly any major new sports deals were done in India. The one exception was Nimbus‘s extension of the BCCI contract, a smart piece of negotiating by the Nimbus team that perhaps signifies a levelling of expectation from the cricket boards. That reality check on price is needed, but the doom and gloom on the value of Test and ODI cricket has been overplayed. The ratings still deliver remarkably consistently for meaningful cricket between well balanced teams in whatever format of the game.

One of the less heralded legacies of the “Lalit Modi era” has been the quiet removal of the concept of each Test playing side playing each other Test playing side home and away. Zimbabwe and Bangladesh‘s best chance of seeing India these days is by booking a holiday in Goa. The BCCI is happy to travel to the smaller cricketing nations (giving Bangladesh and Zimbabwe the boost of TV and sponsor income), but they‘re not going to waste their precious home games on one-sided matches. It might not suit the ICC, but it works for both the BCCI and the other boards.

2010 should finally see the unveiling of cricket‘s next six-year plan of fixtures, and what will hopefully see a “flight to quality”. More matches that promise even contests between well matched sides rather than meaningless three-day Tests and ODIs that are won by the toss.

2009‘s seen plenty of talk of defending Test match cricket. My pet obsession is seeing how many Test matches are being scheduled to play Monday-Friday, as if designed to stop people watching them. The only people these matches suit are the administrators who get home for the weekend. Hopefully 2010 will see success in the pink ball, day night experiments and we will be on the way to Test cricket being played in prime time.

The best piece of rescheduling I‘ve seen for some time is the Pakistan-Australia Tests in July 2010, which will now happen in England and will make the matches happen in prime time for the sub-continent audience. At a stroke, they become much more valuable for the sport as so many more people will be able to watch them.

Pakistan‘s varied itinerary also saw the debut of Dubai Sports city as an international stadium. It‘s round the corner from my house, so I am slightly biased, but I believe it‘s the best cricket stadium in Asia for the viewing public. One of my hopes for 2010 is that it gets to see some regular cricket rather than sit as a dusty monument to Dubai‘s dreams.

Away from cricket in 2009, the world hockey federation (the FIH) have shown faith in India to deliver a hockey World Cup that can revitalise the sport in the country. The evidence so far has been remarkably positive. Investment from sponsors (via the Commune agency) has poured in and the Hero Honda World Cup will be a true opportunity for the Indian game.

The Indian team are showing signs of progress (third in the champions challenge). Hopefully, home conditions and passionate crowds can work in their favour and the final of the tournament in March will overshadow the start of the IPL on the same day.

Zee Sports deserves full marks for bravery in their attempt to showcase Indian football. Plenty have tried and failed to turn the undoubted passion for Indian football into a marketable property. The emotion and quality on show at the Nehru Cup in 2009 is an indication that this is not a lost cause. However, the sport needs to learn from the positive qualities of the Nehru Cup. Full crowds, matches to care about, prime time content all come together as part of the equation that can make the sport work.

International football is certainly gaining ground in some areas of India, even if the viewing figures don‘t really back that statement up. Premium Indian advertisers are beginning to spend on the UEFA Champions League, UEFA Europa League and the BPL. Wealthy Delhi and Mumbai kids all seem to have an English or Spanish football shirt in their wardrobe, and the FIFA world Cup in South Africa should be a superb event.

The international football market is licking its lips at the prospect of an Indian audience buying more of those shirts. The research doesn‘t currently support the emotion. Premier league and UEFA Champions League figures are showing no signs of growth, but they are showing signs that people care more.

The soccer World Cup can only help the process in 2010. I do believe ESPN-Star overpaid with their $48 million bid for three years of Premier League football from 2010-2012, but I remain very happy to watch them every weekend.

One of the sporting stories of the year for 2009 came in a sport that I care very little about. Formula 1 tends to leave me cold, but I love an underdog. As a result Vijay Mallya‘s Force India perked even my interest with their achievements in 2009. To take a podium place and come so close to a first place was remarkable, particularly when you see the sort of funding that the big teams have. As we move towards an Indian Grand Prix and the new circuit on the edge of Delhi, then there is considerable potential for growth around Indian motorsport and its talented young drivers.

Indian golf has some passionate supporters in the industry and 2010 promises more Asian tour events in the country as well as more Indian golfers succeeding on a world stage. Again, from a television industry perspective, we don‘t really see the numbers on a weekly basis but the passionate and committed golf viewer certainly wants more, and the current structure of Indian sports channels does not fulfil that need.

Though sporting prowess on the field has a remarkable effect on the value of what we show, the real test for the Indian market is how quickly television sport is allowed to move away from being an advertising supported industry to a subscriber supported industry.

The lack of accountability and the issues with collections in the cable industry has frustrated the growth of the Indian television sports business. DTH is a true sign of hope, with a viewer choosing and paying for his channel rather than a cable operator choosing for a viewer, and only occasionally paying. The closer that paying relationship between the end consumer and the sports channel, the more chance we have of justifying varied and stimulating content that people actually want to watch.

Indian sports television has come a long way in the last 15 years since I sat watching Chinese football on Prime Sports but unable to watch the Premier league. Yet there is still huge amount of quality sport inside and outside India that is not seen on TV by an Indian audience. The World Athletics Championships, the Spanish football league, the Ultimate Fighting Championships, the European hockey league, the American NFL are all events that some people in India want to watch, but currently cannot do so. The rest of the world is now watching in HD, but India is watching in 4:3, not even in widescreen.

Free the sports channels from the limitations of Trai (Telecom Regulatory Authority of India) pricing, and the doors will open to even better experiences. Control the piracy, encourage innovation. Allow variety of sporting experience, encourage quality of production. Filling each hour of live sport programming with advertising, squeezing back the screen every ball of a cricket match does not deliver the quality of viewing experience that an audience deserves.

Let‘s hope that 2010 allows sports channels the legislative freedoms to offer premium products at premium prices and take Indian sports TV into the 21st century.

January 4, 2010