Category: Production House

  • PVR enters the Rs 1000 crore revenue club; FY-2014 PAT up 26 per cent

    PVR enters the Rs 1000 crore revenue club; FY-2014 PAT up 26 per cent

    BENGALURU: Indian motion picture exhibition, production and distribution house PVR Limited (PVR) reported a 26 per cent jump in PAT in FY-2014 to Rs 56.05 crore (4.15 per cent of net total income from operations or Op Inc) in FY-2014 as compared to the Rs 44.50 crore (5.5 per cent of Op Inc) in FY-2013. The company’s Op Inc in FY-2014 increased 66.67 per cent to Rs 1351.23 crore, hence becoming another media and entertainment company to cross the Rs 1000 crore (Rs 10 billion) mark. PVR had reported revenues of Rs 810.70 crore in FY-2013.

     

    PVR’s consolidated revenue for Q4-2014 was Rs 316 crore as compared to Rs 240 crore during the corresponding period of last year, up by 32 per cent. Consolidated EBITDA for the quarter was Rs 35 crore as against Rs 18 crore in the same period last year, up by 92 per cent.

     

    Note :  100,00,000=100 lakh = 1 crore = 10 million.

     

    PVR Limited has three main revenue streams – Movie Exhibition; Movie Production and Distribution and ‘Others’ which includes bowling, gaming and restaurant services.

     

    Let us look at the other Q4-2014 and FY-2014 numbers reported by PVR

     

    PVR reported more than double (2.01 times) operating profit in Q4-2014 at Rs 33.06 crore in Q4-2014 as compared the Rs16.44 crore in Q4-2013. EBIDTA in Q4-2014 was 92 per cent more at Rs 35.18 crore as compared to the Rs 18.36 crore in Q4-2013. However, in Q4-2014, the company has reported a loss of Rs 5.14 crore as compared to a profit of Rs 11.46 crore in Q4-2013.

     

    PVR’s exhibition business revenue grew by 74 per cent in FY-2014 to Rs 1271.43 crore from Rs 730.05 crore in FY-2013. PAT from this business grew 32 per cent in FY-2014 to Rs 57.87 from Rs 43.84 crore in FY-2013.

     

    In Q4-2014, PVR’s exhibition business revenue grew by 29 per cent to Rs 288.96 crore from Rs 223.68 crore in the year ago quarter. PAT during the quarter was 19 per cent down to Rs 7.11 crore from Rs 8.75 crore in Q4-2013.

     

    PVR’s net box office collection including Cinemax numbers went up 13 per cent to Rs 795.16 crore in FY-2014 as compared to the Rs701.26 crore in FY-2013. Net box collection during Q4-2014 was 20 per cent more at Rs 174.23 crore as compared to the Rs 144.28 crore in Q4-2013.

     

    Net Food and Beverage (F&B) revenue in FY-2014 at Rs 298.08 crore was 29 per cent more than the Rs 231.48 crore in FY-2013. IN Q4-2014, F&B income at Rs 71.28 crore was 46 per cent more than the Rs 48.84 crore in Q4-2013.

     

    Sponsorship revenue went up by 44 per cent from Rs 98.61 crore in FY-2013 to Rs 141.86 crore in FY-2014. In Q4-2014, sponsorship revenue went up 48 per cent to Rs 32.85 crore from Rs 22.14 crore in Q4-2013.

     

    Expenditure

     

    Total Expenditure (Tot Exp) in FY-2014 at Rs 1230.22 crore (91.04 per cent of Op Inc) was 65.02 per cent more than the Rs 745.52 crore (91.96 per cent of Op Inc) in FY-2013. Tot Exp in 4-2014 at Rs 315.58 crore (100.43 per cent of Op Inc) was 2.38 per cent more than the Rs 308.24 crore (91.82 per cent of Op Inc) in Q3-2014 and 32 per cent more than the Rs 239.15 crore (101.24 per cent of Op Inc) in Q4-2013.

     

    PVR’s film exhibition cost in FY-2014 at Rs 329.49 crore (24.38 per cent of Op Inc) was 64.4 per cent more than the Rs 200.43 crore (24.72 per cent of Op Inc) in FY-2013. Film exhibition cost in Q4-2014 at Rs 68.6 crore (21.83 per cent of Op Inc) was 17.7 per cent less than the Rs 83.34 crore in Q3-2014 and 14.5 per cent more than the Rs 59.91 crore (25.4 per cent of Op Inc) in Q4-2013.

     

    PVR Ltd chairman and managing director Ajay Bijli said, “FY 2014-15 has started well with strong performance of films like 2 States, Bhootnath Returns, Captain America and the strength of the film line up for the remaining part of the year underpins our confidence that we are on track with our plans for the full year. Our differentiated strategy, heightened brand awareness, and guest engagement tactics will further enhance the customer experience in 2014 and beyond. During the year the company also surpassed an important milestone of 400 screens in India further consolidating its leadership position in multiplex space in India. The merger of Cinemax with PVR also got completed and the management will continue to focus on driving synergies from the combined scale of operations which is reflecting in the market share and the reported results.”

     

    PVR operates multiplex theatres under two mother brands – PVR and Cinemax. In January 2013 the Company acquired 93.19 per cent of controlling stake in Cinemax India, a Cinema Exhibition Company having 135 screens spread across 38 locations in India, through its wholly owned subsidiary Cine Hospitality Private Limited to become the undisputed leader in the cinema exhibition business in India. Post aforesaid acquisition PVR together with Cinemax currently operates a cinema circuit consisting of 421 screens spread across 97 cinemas covering 41 cities in India. The company claims to be the dominant leader with 30-35 per cent share of box office collections for Hollywood movies in India and 20-25 per cent share of Bollywood movies.

     

    PVR claims to commands a phenomenal 70 per cent of the advertising revenue in the cinema medium space and delivers 360 degree exposure & innovative opportunities to brands, both on-screen and off-screen. The Company says that it is associated with the top 100 brands in the country. PVR is expected to add 70-80 screens every year.

     

    PVR has informed BSE that the Board of Directors of the Company at its meeting held on 29 May 2014, inter alia, has recommended payment of Final Dividend @ Rs 2.50 each share subject to the approval by the members of the Company in the forthcoming Annual General Meeting.

  • FY-2014: BAG Films reports Rs 6.09 crore PAT: Radio segment operating loss widens by 68 per cent

    FY-2014: BAG Films reports Rs 6.09 crore PAT: Radio segment operating loss widens by 68 per cent

    BENGALURU: B.A.G. Films & Media Limited (Bag Films) reported consolidated PAT of Rs 6.09 crore (4.14 per cent of Total Income) in FY-2014 as compared to a loss of Rs (-82.16) crore in FY-2013. Overall, even for FY-2014, the company has reported a loss of Rs (-9.13) crore, however, contribution from minority interest of Rs 15.22 crore has resulted in the positive PAT for the year mentioned above.

     

    Note :  100,00,000=100 lakh = 1 crore = 10 million.

     

    For Q4-2014, Bag Films reported a (-90.91) per cent drop in PAT to Rs 0.67 crore (1.61 per cent of Total Income) as compared to the Rs 7.02 crore (17.85 per cent of Total Income) in Q3-2014 and a loss of Rs (-7.29) crore in Q4-2013.

     

    Bag Films reported 24.34 per cent higher total income in FY-2014 at Rs 147.15 crore as compared to the Rs 118.35 crore in FY-2013. Total Income for Q4-2014 at Rs 41.87 crore was 6.45 per cent more than the Rs 39.35 crore in the immediate trailing quarter and 27.21 per cent more than the Rs 32.92 crore in the year ago quarter –Q4-2013.

     

    Despite a much lower operating q-o-q loss in Q4-2014, the company’s radio segment reported a loss of Rs (-2.18) crore in FY-2014 as compared to an operating  loss of Rs (-1.3) crore in FY-2013. The segment reported an operating loss of Rs (-0.10) crore which was about one ninth the loss of Rs (-88.43) crore in Q3-2014 and about one twelfth the loss of Rs (-117.46) crore in Q4-2013.

     

    Bag Films radio segment reported (-1.22) per cent drop in operating revenue in FY-2014 to Rs 5.09 crore from Rs 5.15 crore in FY-2013. In Q4-2014, the segment’s operating revenue jumped 84.24 per cent to Rs 1.63 crore from Rs 0.89 crore in Q3-2014 and was 30.1 per cent more than the Rs 1.25 crore in Q4-2013.

     

    Bag Films FM Radio segment operates under the brand name ‘Radio dhamaal’ and is available at the frequency of 106.4 and is present in seven states and 10 towns of India.

     

    Bag Films has informed the stock exchanges that the Board of Directors of the Company at its meeting held on 26 May 2014, inter alia, has not proposed any dividend for the Financial Year ended 31 March 2014.

     

    Let us look at the other FY-2014 and Q4-2014 numbers reported by Bag Films

     

    Bag Films Total Expense in FY-2014 at Rs 137.23 crore (93.26 per cent of Total Income) was (-6.13) per cent lower than the Rs 146.19 crore (123.53 per cent of Total Income) in FY-2013. Total Expense in Q4-2014 at Rs 33.63 crore (80.32 per cent of Total Income) was (-6.99) per cent lower than the Rs 36.16 crore (91.93 per cent of Total Incoms) and (-8.20) per cent lower than the Rs.36.64 crore (111.3 per cent of Total Income) in Q4-2013.

     

    The company’s finance cost in FY-2014 was 73.55 per cent more at Rs 19.48 crore (13.25 per cent of Total Income) as compared to the Rs 11.23 crore (9.49 per cent of Total Income) in FY-2013. In Q4-2014 finance cost at Rs 7.65 crore (18.27 per cent of Total Income) was 60.01 per cent more than the Rs 4.53 crore (11.51 per cent of Total Income) in Q3-2014 and more than double (2.08 times) the Rs 3.68 crore (11.19 per cent of Total Income) in Q4-2013.

     

    Bag Films reported lower depreciation numbers for FY-2014 at Rs 18.66 crore (-10.39) per cent lower than the Rs 20.82 crore in FY-2013. Depreciation for Q4-2014 at Rs 4.61 crore  was (-2.06) per cent lower than the Rs 4.71 crore in Q3-2014 and (-18.23) per cent lower than the Rs 5.64 crore in Q4-2013.

     

    During FY-2014, the company has pared its employee cost to Rs 17.95 crore from Rs 19.72 crore in FY-2013.

     

    Segments Results

     

    The following segments contribute to Bag Films revenue: Audio-visual production, movies, leasing, FM radio and television broadcasting. FM radio results have been mentioned above. The company has mentioned revenue and result from movies as NIL. We shall look at two other segments – Audio-visual production and television broadcasting in this report.

     

    Bag Films Audio-visual production segment reported revenue of Rs 48.59 crore in FY-2014 which was 76.51 per cent more than the Rs 27.53 crore in FY-2013. Revenue from this segment in Q4-2014 at Rs 11.17 crore was (-23.66) per cent lower than the Rs 14.64 crore in Q3-2014 but more than double (2.16 times) the revenue of Rs 5.17 crore in Q4-2013.

     

    Audio-visual production segment reported operating profit of Rs 9.31 crore in FY-2014, as compared to a loss of Rs (-2.78) crores in FY-2013. In Q4-2014, Audio-visual production segment reported 50.08 per cent growth in operating results to Rs 4.92 crore as compared to the Rs 3.28 crore in Q3-2014 and a loss of Rs (-1.89) crore in Q4-2013.

     

    Bag Films runs News 24 and E24 television channels. Its Television broadcasting (TV) segment reported operating revenue of Rs 89.44 crore in FY-2014, which was 6.57 per cent more than the Rs 83.93 crore in FY-2013. The company’s TV segment reported revenue of Rs 26.47 crore in Q4-2014, which was 12.16 per cent more than the Rs 23.60 crore in Q3-2014 and 2.2 per cent more than the Rs 25.90 crore in Q4-2013.

     

    Bag Films TV segment reported more than triple (3.17 times) operating profit at Rs 31.09 crore in FY-2013 as compared to the Rs 9.80 crore in FY-2013. Operating profit by this segment in Q4-2014 at Rs 9.43 crore was 10.12 per cent more than the Rs 8.56 crore in Q3-2014 and 3.04 per cent more than the Rs 9.15 crore in Q4-2013.

    Bag Films has informed BSE that the Board of Directors of the Company at its meeting held on 26 May 2014, has approved the preferential issue of 80,000,000 (Eight crore only) warrants convertible into equity shares at a later date, on a preferential basis, to Promoters/Promoter Group and Non Promoters subject to approval of the shareholders in the forthcoming Annual General Meeting and such regulatory or statutory approvals as may be necessary/required.

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  • Other income cushions Balaji Telefims FY-2014 loss; board recommends dividend of Rs 0.4 per equity share

    Other income cushions Balaji Telefims FY-2014 loss; board recommends dividend of Rs 0.4 per equity share

    BENGALURU: Balaji Telefilms Limited (Balaji) reported consolidated loss of Rs (-17.2124) crore in FY-2014, a loss that was lowered by other income to the extent of Rs17.984 crore.  The company had reported PAT of Rs14.58 crore in FY-2013. Other income includes proceeds of Rs 6.73 crore from a Keyman Insurance Policy taken by the company in earlier years. Other Income in FY-2013 at Rs 18.38 crore was 2.17 per cent more than the current year.

     

    Three major segments contribute to Balaji’s revenue – Commissioned Programs, Sponsored Programs and Films according to the results the company has submitted to the bourses. The board of directors of Balaji have recommended a dividend of Rs 0.40 per (20 per cent) equity share of face value of Rs 2- each for FY-2014 as compared to a dividend of Rs 0.20 (10 per cent) in FY-2013.

     

    The company reported Rs133.48 crore as the revenue from Commissioned Programs in FY-2014, (-1.63) per cent lower as compared to the Rs 135.69 crore in FY-2013. Commissioned programs reported an operating profit of Rs 21.21 crore in FY-2014 as compared to a profit of Rs19.32 crore in FY-2013.

     

    Revenue from Sponsored Programs in FY-2014 was nil as compared to the Rs 4 crore in FY-2013. This segment result in FY-2014 was nil as compared to a loss of Rs (-2.04) crore in FY-2013.

     

    Balaji’s Films reported consolidated revenue of Rs 273.43 crore in FY-2014 more than six times as compared to revenue of Rs 44.63 crore in FY-2013. This segment reported an operating loss of Rs (-27.72) crore in FY-2014 as compared to an operating profit of Rs 2 crore in FY-2013.

     

    Let us look at the other numbers reported by the company.

     

    Balaji Telefilms reported consolidated revenue of Rs 407.46 crore in FY-2014, more than double (2.19 times) the Rs185.97 crore in FY-2013.

     

    The company’s total expense in FY-2014 at Rs 435.97 crore was 2.34 times more than the Rs185.96 crore in FY-2013.

     

    Higher marketing and distribution expense, decrease in stock in trade are some of the major reasons for the increase in total expenditure.

     

    Balaji spent 6.125 times more money towards marketing and distribution expense at Rs 76.18 crore in FY-2014 as compared to the Rs 12.38 crore is FY-2013. The company showed a reduction in stock-in-trade of Rs 80.60 crore in FY-2014 which showed an increase in total expenditure as compared to an increase in stock-in-trade of Rs107.59 crore  which resulted in a reduction in total expenditure in FY-2013.

     

    The company has paid higher finance costs at Rs13.731 crore in FY-2014 as compared to the Rs 8.52 crore in FY-2013.

     

    Let us look at Balaji’s subsidiary companies

     

    Three companies – Balaji Telefilms (BTL), Balaji Motion Pictures Limited (BMPL) and Bolt Media Limited (Bolt) are a part of Balaji. Cost of Production / Acquisition and Telecast Fees is the highest expense head for all the three companies.

     

    BTL’s income from operations in FY-2014 was Rs131.54 crore, and the company reported a profit of Rs 10.02 crore in FY-2014. BTL paid Rs 100.60 crore in FY-2014 towards Cost of Production / Acquisition and Telecast Fees.

     

    BMPL had income from operation of Rs 271.69 crore in FY-2014 and the company reported a loss of Rs (-26.27) crore during the period. Cost of Production / Acquisition and Telecast Fees for BMPL was Rs 281.13 crore.

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    Bolt reported Operating revenue of Rs 4.75 crore in FY-2014 and an operating loss of Rs 0.93 crore. Cost of Production / Acquisition and Telecast for Bolt was Rs 3.76 crore.

     

    Balaji says that its revenue per commissioned hour for BTL in Q4-2014 was Rs 21.66 lakh as compared to Rs 21.18 lakh in Q3-2014 and Rs 22.30 lakh in Q4-2013. Excluding regional segment, event business and incentives, the company commissioned 173 hours in Q4-2014 which was same as the number of hours commissioned in Q3-2014 and 28.1 per cent more as compared to the 135 hours in Q4-2013.

     

    Balaji also says that two movies were released in Q4-2014 and six movies in FY-2014. It adds that Production cost comprises old films inventory amortisation and marketing and distribution expenses of films releasing in FY-2015.

  • Relativity Media & B4U forge broad partnership

    Relativity Media & B4U forge broad partnership

    MUMBAI: Another large US independent global film and TV production studio-cum-distributor-cum financier is making its way into India. At least it has announced its intentions to do so. The Ryan Kavanaugh headed Relativity Media – which has 200 Hollywood films with a claimed box office revenue of $17 billion worldwide- has chosen to partner with steel baron Lakshmi Mittal-Kishore Lulla-Gokul Binani -backed B4U in a joint venture.  The announcement was made in Cannes by Kavanaugh and B4U CEO Ishan Saksena just as the week was ending and the Cannes Film Festival was going past the half way mark.

     

    The joint venture will – according to a press release – “leverage their combined expertise, relationships and resources to create and distribute highly-engaging long and short form entertainment and sports content in India that will span a variety of mediums including film, television and digital.”

     

    It clearly elucidates what the duo will do through the new initiative:

     

    ·Distribute future Relativity films and other select entertainment content in India and the surrounding regions

    ·Co-finance, co-produce and distribute Indian language films and television shows as well as acquire projects in the U.S. and Indian markets

    ·Distribute third-party content in India and select Bollywood films in the U.S.

    ·Create and launch a new pay television channel in India focused on Hollywood content in both English and Hindi

    ·Launch RelaTV– a digital streaming technology platform to deliver compelling short and long form content to Indian consumers

    ·Co-produce a slate of Hollywood films including The Best of Me

     

    Around $100 million will be available to the joint venture to roll out its ambitions.

     

    But Hollywood-Bollywood collaborations have not been something to write home about. UTV tried to forge partnerships with Will Smith’s Overbrook Entertainment and with M Night Shyamalan but did not get too far. Reliance Entertainment’s partnership with Dreamworks has done reasonably well. The YRF Entertainment co-produced  – withPierre-Ange Le Pogam and writer Arash Amel – Grace of Monaco premiered at the Cannes Film Festival  last week, but has got scathing reviews as being poorly directly and scripted.

     

    Both Kavanaugh and Saksena believe their coming together will be fruitful. Says Kavanaugh:  “This strategic partnership represents an exciting opportunity for Relativity to significantly expand our presence in this vibrant and growing marketplace while creating a bridge for developing and sharing content between Hollywood and Bollywood.”

     

    “By 2020, India is set to become the world’s youngest country, and its citizens are adopting new technology platforms  – from smartphones to smart TVs – at a dramatic rate. Thejoint venture positions us well to deliver enthralling content across rapidly emerging distribution channels.”

     

    Added Saksena: “B4U has always been at the helm for delivering Bollywood content in India and internationally.  This joint venture with Relativity is the natural step in our progression to build a creative film studio and unique technology platform.  Our joint venture provides a platform to bring the best of Relativity’s intellectual property, production skills, and unique monetizing strategies to India, while also providing Indian talent access to global audiences.”

     

    The $100 million fund will be under Saksena’s management who is reportedely close to Mittal’s son-in-law Amit Bhatia and is a managing director at  the latter’s  investment company Swordfish Investments. He worked very closely with Bhatia and helped him turn around the Queens Park Rangers football club in 2010.

     

    Thanks to Lulla’s involvement with B4U, the joint venture is likely to have access to the Eros International’s  large Hindi film catalogue – probably the largest for Indian films. Which should help it build up the pay television channel  and streaming media service – RelaTV – for India along with Relativity Media’s slate  of films and TV shows. Lulla has in recent times forged alliances with HBO for two local pay TV channels – HBO Hits and HBO defined – and with Endemol for production of films in India.

     

    Saksena – who has had experience managing Queens’ Parks Rangers – will in all probability be bringing all that to bear on the sports side as he tries to get the best expertise out of Relativity Sports.

  • Creating the world’s largest content production behemoth

    Creating the world’s largest content production behemoth

    MUMBAI: When it’s the Murdochs you have to think big. Big with a capital B.  No less. Consider the 21st Century Fox’s latest announcement that it has entered into a preliminary agreement, with funds managed by affiliates of private equity (PE) firm Apollo Global Management to form a joint venture that seeks to bring the Shine Group, Core Media Group, and Endemol under one umbrella.

     

    The new initiative has conditions attached.  It will have to be jointly owned and managed by the two groups. 21st Century gave no assurances that the proposed transaction would be completed. 

     

    But if it does go through, it will create the world’s largest independent production engine (estimates are that its valuation will be in the region of $2 billion). The proposed Apollo 21st Century joint venture will boast a roster of shows such as Big Brother, Deal or No Deal, The Money Drop and Your Face Sounds Familiar, Total Wipeout, The Million Pound Drop Live, Peaky Blinders and Ripper Street (under Endemol); MasterChef, The Face, The Biggest Loser, The Bridge and Broadchurch (through Shine) and So You think You can Dance and American Idol (through Core Media).

     

    Both 21st Century and Apollo have their own compulsions to make the deal happen, though how it will happen is not clear. Shine, Endemol and Core Media own a complex web of production companies worldwide headed by various senior executives.

     

    Apollo, for its part, has been eager to consolidate its TV production holdings through Endemol and Core Media and even find a partner to further its global ambitions. It has $125 billion in assets in several sectors in its portfolio.

     

    Apollo wanted a piece of the content production pie and forayed into TV production when it acquired CKX Media (along with it came Simon Fuller’s 19 Entertainment which co-owns the Idol format franchise) in 2011, renaming it later as Core Media.  

     

    The PE firm then went on to expand its TV production presence by acquiring a stake in Endemol after buying out owners Goldman Sachs and Sylvio Berlusconi’s Mediaset in 2012.  Endemol has a presence in 30 countries through 90 companies, makes more than 15,000 hours of programming every year for 300 broadcasters and has a handsome catalogue of 2000 formats.

     

    Apollo currently co-owns Endemol with Cyrte Investments (a fund closely associated with Endemol founder John de Mol and now renamed as Daysim Investment Strategies).  It tried to merge Core and Endemol but backed off when de Mol opposed the move in 2012. De Mol, for his part, attempted to unite Endemol with his current media vehicle Talpa Media earlier this year, but jettisoned the deal when the sticker price went up.

     

    Earlier, in 2012, Apollo explored the possibility of fusing Endemol and Core Media with investment from former News Corp CEO Peter Chernin’s Chernin Entertainment. But the discussions were aborted.

     

    Murdoch has his own imperatives to make the deal happen. It gives 21st Century the opportunity to exit from the Shine group, which was acquired by News Corp in 2011 for $675 million. He had come under severe criticism of nepotism as Shine was founded and run by his daughter Elisabeth, who now functions as its chairman. Today, Shine is owned by 21st Century after Murdoch restructured News Corp into two units – News Corp and 21st Century – following the phone hacking and police bribery scandals in the UK.  And it has 26 production companies across 11 countries including Shine TV, Shine America, Judos Film & TV and Princess Production in its portfolio.

     

    The deal is an indication of how Murdoch sees his media empire structured going forward. His movie production and television broadcasting businesses figure under a single vehicle 21st Century.  His newspaper and publishing interests under News Corp. His satellite, platforms and pay TV business under British Sky Broadcasting (BSkyB – has recently announced that it has made an offer to acquire 21st Century’s investment in Sky Deutschland and Sky Italia, leading pay TV platforms in Europe).

     

    BSkyB, Sky Italia and Sky Deutschland are owned by 21st Century with differing equity stakes. And his content production business is now slated to be under the joint Apollo and Shine venture.

     

    The proposal is timely. The content production landscape is undergoing a wave of consolidation: recently, Discovery Communications and Liberty Global agreed to buy UK production company All3Media for $930 million and Britain’s ITV snapped up 80 per cent of Leftfield Productions for $360 million.

     

    Agglomeration in content production in Europe and the US is following in the wake of consolidation in the pay TV business, where companies such as Comcast are showing an urge to merge in order to strengthen their negotiation power with content providers.

     

    The Apollo-21st Century joint venture, if it goes through according to reports, will also focus on expanding the combined entity’s focus beyond unscripted formats to scripted shows and on digital productions for online and over the top service providers. And, if it does get realised, it could spark off another wave of acquistions by other content producers as they try and join the getting-scale race too.

  • Throwing light on the TV Producers-Actors MoU

    Throwing light on the TV Producers-Actors MoU

    MUMBAI: A lot of dust has been raised in the media recently about the memorandum of understanding (MoU) inked between the Cine & TV Artistes Association (CINTAA), the Federation of Western India Cine Employees (FWICE), and the Indian Film and TV Producers’ Council (IIFTPC) on 1 May.

     

    While producers claim the MoU (indiantelevision.com is in possession of the original copy) aims at creating a more efficient and frictionless system with respect to parameters like employment and wages, shifts and work schedules and working conditions, actors are crying foul over perceived injustices meted out to them in it.

     

    Referring to the hue and cry over the “three-year contract” clause in the MoU, FWICE president and CINTAA Hon general secretary Dharmesh Tiwari cautioned that actors have misunderstood the clause. He pointed out that the MoU requires only five lead actors, as decided by the producer, to sign the three-year contract with him/her.

     

    “There has been a lot of confusion in the artistes’ minds regarding the clause. The real intention is: if a show runs for three years, the contract gets renewed every year but only for the main four to five lead actors. A producer has to let go of the other actors after a couple of months, so that they can work elsewhere,” explained Tiwari. “However, once a particular serial becomes a hit, the actor, especially the lead, wants more money to do it. So, we are just being cautious and want the person to sign beforehand so that even if the serial becomes a hit, he/she cannot leave or demand extra money. The clause further specifies that the actor can leave under ‘special circumstances’ and if it is genuine, the producer will let go of him/her anyhow. Mutual understanding is of importance here.”

     

    The clause implies that it is up to the producer to give a raise to whosoever is the face of the show.

     

    The three-year contract clause further states that all engagements of actors will be recorded in writing and it will be mandatory for producers to give a copy of the contract/agreement to such actors before commencement of the shoot or not later than 15 days after commencement of the shoot. In the event the artiste is not given a copy of the contract after expiry of the 15 days deadline, the terms and conditions will not be applicable to him/her till such time the signed agreement is handed over to him/her.

     

    Apparently, 10-15 actors and five to seven producers collectively formulated the MoU, after which, it was signed by hundreds of artistes and 40-50 producers before being sent for a final okay. A producer who was part of this core team on condition of anonymity went on to say, “Four or five actors are now saying in the newspapers that the three-year contract clause is not justified. I don’t think this is fair. It is an insult to CINTAA and the producers’ body.”

     

    Another producer on condition of anonymity defended the clause saying, “This is the first time in 20 years that some kind of documentation (read: MoU) has been done by CINTAA and the producers’ body together. Shouldn’t we be welcoming it rather than talking about pros and cons.”

     

    A third producer who also did not wish to be named said, “People are only talking about the three years, but they should know what the details are. Just don’t go by the headlines. People are reacting even without reading it. I can guarantee that most of the actors haven’t even read the clause. No one will benefit from this, but one will surely suffer losses if it isn’t implemented.”

     

    Sudhir Sharma of Sunshine Productions said, “I am not saying all producers are the same. This MoU puts a lot of  pressure on producers too. There are regulations on producers who do not pay on time or pay conveyance or stick to their contracts. So, it applies to producers as much as it does to actors. It is absolutely balanced and fair.”

     

    A fourth producer on condition of anonymity said the MoU would make actors think twice before acting pricey. “It is absolutely justified. An artist signs a contract with a show and after eight to 10 months once the show becomes popular, starts demanding extra money or threatens to leave it. Today, the economy is so tough that by the time a producer breaks even, it is already six months,” he said. “The artist starts behaving badly, coming late to the sets, disturbing the schedule, taking other assignments or generally making life hell for the producer. The three-year contract is for such artistes while disciplined artistes do not have anything to worry anyway.” 

     

    Apart from the three year clause, another clause of the MoU, which deals with actors who are engaged up to only five days per month and whose per day remuneration is only up to Rs 5,000, has been the subject of much debate. The clause states that such actors will be paid within five days of their last day of shooting. Morever, the production house will fix their per-day remuneration after negotiations with them, and Rs 300 will be paid in cash over and above the agreed per day remuneration after completion of the day’s shoot. In the event the actor is part of a mythological/historical/weekend show, the payment will be made within 21 days of his/her day of shooting.

     

    Lead actors get all the money and fame. Actors are paid purely on the basis of their popularity. It is learnt that a newcomer gets anywhere between five to 10 thousand rupees per day while an extremely popular actor may get paid up to 50-60 thousand rupees a day.

     

    “Think of the people who get less than Rs 5,000 per day. Out of the 5,000 to 10,000 actors today, there are only about a hundred who get paid above Rs 10,000-15,000 per day. The remaining get paid Rs 3,000-5,000. I am talking about a large chunk of actors here, not the stars,” said a fifth producer, who was also part of the core team that formulated the MoU. “A large number of actors would get paid after three months. Even if they had worked for only two days in the month for Rs 8,000, they would have to visit the office premises twice – once for billing and the second time, for payment. With this clause, 70 per cent of the community is going to get their payments within a week. It’s a beautiful system. Look at the bigger chunk.”

     

    A majority of producers feel that the MoU will help actors who are getting paid less so that they don’t have to wait for two to three weeks just for their payment to be released.  The MoU is a reflection of the fact that CINTAA is working for 95 per cent actors who work day and night and not just for the cr?me de la cr?me.

  • Balaji style soap opera unwinds at Filmcity

    Balaji style soap opera unwinds at Filmcity

    MUMBAI: Balaji Telefilms, known to be the biggest production house of the small screen, hit a roadblock when a nasty fight broke out between Balaji crew members and members of the Allied Mazdoor Union (AMU), which represents the interests of labourers like spot boys, lightmen and set technicians.

     

    The incident took place on 12 May night at the Killick Nixon studio in Mumbai’s Andheri east suburb where a majority of the Balaji shows are filmed. The reason. says the AMU, was that Balaji did not change workers even after the end of the 12-hour shift, as mandated by the agreement forged between the producers and workers’ unions.

     

    Said a Balaji source, “They blamed us saying we did not change the workers after the completion of the 12 hour shift. But it isn’t true. Even after saying, we did change workers; they raised a ruckus and did not allow us to shoot following the ugly fight.”

     

    Another source from Balaji added, “It is not for the first time they have attacked us. It’s an everyday routine. They visit our sets and try to upset our daily routine. We need to have a permanent solution.”

     

    After the ruckus, the members of the union showed its might and stalled all shoots at Filmcity on 13 May until late in the evening. The Indian Television Dot Com office got calls from irate creative directors, producers, wondering when a resolution would be found during the day.

     

    Several TV producers faced a problem, including Sudhir Sharma’s Sunshine Productions, Yash Patnaik’s Beyond Dreams, and Vikas Gupta’s Lost Boy Productions – which have units shooting different shows at Filmcity.

     

    AMU general secretary Gangeshwar Shrivastav said, “Workers are allowed to work for 12 hours. We heard that Balaji was making them work for more than 20 hours. When we received a complaint, we went there and they fought. They broke our cars. We filed a police complaint at Powai Police Station and four members of Balaji were arrested.”

     

    Balaji Telefilms raised a protest with the Indian Film & Television Producers’ Council  (IFTPC) of which it is a member. The TV division committee members got onto a conference call late in the evening with the AMU office bearers and told them to allow producers to recommence shooting at least for now. The AMU agreed to do so, but they mutually agreed to meet on a suitable date after 20 May to thrash out any misunderstandings.

     

    Following the call, at around 6.30 pm,  the cameras started whirring and shouts of “Action” were heard once again on the shooting floors of Filmcity. 

    (Tellychakkar.com – part of the indiantelevision.com group was the first to report this story.)

     

  • Wentworth adaptation ‘Celblok-H’ to serve more time in Holland with recommission

    Wentworth adaptation ‘Celblok-H’ to serve more time in Holland with recommission

    MUMBAI: FremantleMedia has today confirmed that prison dramaCelblok-H, the Dutch adaptation of the global Australian hit Wentworth,has been recommissioned by SBS 6 in Holland for a second season. SBS confirmed the second season earlier this week even before the final episode of the first season aired.

    Adapted from the hugely successful FremantleMedia Australia series, season one Celblok-H used the same scripts to tell the gritty story of survival, rivalry, power struggles and unlikely allegiances within a female prison. It is expected that season two will follow the same process.

    Compelling and emotional, season one of Celblok-H captured up to 1.3 million viewers becoming the number one drama on SB6 so far this year. The show performed up to 84% higher than SBS6’s prime time average for total individuals (4+) and won shares of up to 21%, performing 145% higher than SBS6’s prime time average for the 20-49 demographic.

    Willem Zijlstra, CEO of FourOne.Media said,“Quality rules. I am happy that our friends at SBS have decided to follow-up on the first season so soon. We’ve made a true version of the Australian original and all credit to them, it works on every level and the audience responded accordingly.”

    Jo Porter, Director of Drama at FremantleMedia Australia said, “We could not be more proud to see the Australian DNA in Wentworth go on to create new versions around the world.  It is particularly satisfying to see Celblok-H receive the same popular and critical acclaim as the original; it is fantastic news that our friends and colleagues in Holland have received a commission for a second series. The unique networks within FremantleMedia mean we are able to create drama that works around the world.”

    The second season of Wentworth will premierMay 20thon Foxtel Australia with the third season currentlyin production. The first season of Wentworth has garnered critical acclaim internationally, and has won two 2014 ASTRA Awards for ‘Most Outstanding Drama’ and ‘Most Outstanding Performance by a Female Actor’. The show continues to captivate international audiences, having sold to over 80 markets to date.

    Season 2 of Celblok-H will go into production later this summer.

  • ABAI looks to promote animation with its new programme

    ABAI looks to promote animation with its new programme

    MUMBAI: One of the largest non-profit association in the country, ABAI is introducing a first-of-its-kind educational initiative in Bengaluru city christened as ‘Train the Trainers’ (TTT) and is actively supported by Department of IT, BT, S&T – Government of Karnataka. The program is slated to start on 21 April 2014.

     

    The Government of Karnataka through its KAVGC policy 1.0 is aimed at improving the educational infrastructure of the AVGC (Animation, Visual Effects, Gaming and Comics) industry. In order to improve the quality of the trainers in the AVGC industry, and thereby improving the overall quality of education imparted, TTT program aspires to bring together national and international trainers to facilitate the training in different modules of various stages of production.

     

    TTT program, chaired by Bhasinsoft CEO and ABAI secretary Ankur Bhasin is envisaged to provide an academically challenging educational experience through effective teaching, research and service, enabling candidates to acquire understanding, knowledge and skills necessary for establishing successful career in teaching and becoming responsible trainers within the animation industry.

     

    “The TTT is an innovation on jump-starting the quality of educational initiative on the digital arts environment. It assesses the pain point of who will impart new media arts learning. It will help plug a major gap in growing a talent that needs tens of thousands of employees over the next three to five years,” said ABAI president & Technicolor India country head Biren Ghose in a press statement.

     

    The candidates who enroll for this program stand to gain not only six months of high-quality training but also a chance to work on live projects in a professional studio environment. This will enable the candidates to learn teaching techniques such as creative teaching methodology, class-room management, and all other aspects of AVGC.

     

    “TTT program, in its initial offering, starts with a concentrated batch of 12 candidates per batch to ensure that there is no dilution in the quality of imparted training. A separate Executive TTT course is also offered for working faculties who prefer weekend classes,” said Bhasin.

     

    He added; “In my studio, Bhasinsoft, and across the industry it is seen that a large amount of good talent comes from tier 2 and tier 3. Hence, TTT is also planned in a way to reward trainers in the program with cash incentive for training in tier 2 and tier 3 cities.”

     

    Institutes stand to benefit that the candidates will be able to bring the exposure and knowledge to impart quality training to students. The teaching methodology, which is a combination of a learner-centred interactive methodology and a project-based teaching, will help bridge the gap between Institute and Industry. A better education quality is bound to improve the students’ placement record, which will further enhance the reputation of Institute.

     

     “Indian AVGC industry is growing at a rapid pace – not only because of larger quantity of Hollywood content being worked on in India but also because of a growing domestic market. The animation, VFX and post production market has grown from Rs 35.3 billion in 2012 to Rs 39.7 billion in 2013 and is expected to add over 40,000 jobs in the coming three to four years. For the growth to sustain and further enhance, it is imperative that the quality of students being trained improves which in turn is a result of the quality of trainers imparting the training. Hence, TTT directly addresses the need of the hour,” emphasised Bhasin.

  • PFT raises Rs 45 crore through optionally convertible debentures

    PFT raises Rs 45 crore through optionally convertible debentures

    MUMBAI: Prime Focus Technologies (PFT), the technology subsidiary of Prime Focus is really upping the ante, as it raised Rs 45 crore through a private placement of optionally convertible debentures (OCDs) from a diverse base of High Net-worth Individuals.

     

    The investors will have an option to convert up to 25 per cent of the total principal amount or around Rs 11 crore into equity of PFT after two years. The firm said this puts a base equity valuation of PFT at Rs 1,100 crore. This means the unnamed investors may get around one per cent stake for part conversion of the OCDs.

     

    The company will use the fund raised to fuel its expansion plans of cloud technology product, namely CLEAR in the global markets and also to peel debt.

     

    “Through this attractively structured instrument, we have secured growth capital while broad-basing our investor base and at the same time creating a compelling opportunity for shareholder value creation at PFT as well as the ultimate shareholders at PFL level,” said PFT founder and CEO Ramki Sankaranarayanan in a statement.

     

    CLEAR Media ERP claims to be a pioneering solution and market leader with the world’s biggest broadcasters and distribution networks using it for managing their revenue and time critical content operations. PFT’s innovative hybrid cloud technology platform virtualises the content supply chain and helps media and entertainment organisations manage the business of content. CLEAR already hosts and manages over 350,000 hours of content and delivers more than 200 TV shows a day.

     

    PFT has grown at over 150 per cent on a year-on-year basis since inception six years ago and aims to replicate its initial success with broadcasters in the North American studio production segment, the statement said.

     

    Recently, PFT acquired US-based DAX LLC, a provider of cloud-based production workflow and media asset management applications, for Rs 56 crore in a performance-linked transaction.

     

    DAX is the creator of the Primetime Emmy Award winning Digital Dailies, which is the de facto industry standard in TV production.

     

    CLEAR, PFT’s award-winning Hybrid Cloud technology enabled Media ERP platform and digital content services help broadcasters, studios, advertisers, sports bodies, news agencies, the government and service providers drive creative enablement, enhance ecosystem efficiencies and sustainability, reduce cost and realize new monetisation opportunities.

     

    PFT works with major content owners like Bloomberg, Disney, Warner Bros., News Corporation owned Star TV, Zee TV, Eros International, Sony Music, Viacom 18, MSM, BCCI (Board of Control for Cricket in India), IPL (Indian Premiere League), Hindustan Unilever Limited, The Associated Press, A & E TV Network and Schawk!

     

    Prime Focus’ worldwide network of studios and WorldSourcing model supported by a Global Digital Pipeline allows PFT to offer customers transformational solutions that help them virtualise business processes around content and manage the business of content better.

     

    PFT had announced a net profit of Rs 2.69 crore from revenues of Rs 52.44 crore for the quarter ended 31 December, 2013. This is a big jump from the Rs 51.07 crore loss posted in the same time the previous year from revenues of Rs 43.94 crore.

     

    The technology business and the visual effects business contribute to about 84 per cent of the company’s revenue. The technology division alone grew 112 per cent year-on-year in Q3-FY14 driven by an increasing adoption of CLEAR as well as addition of new services around it, the company said during its earnings call.

     

    Following the announcement yesterday, Prime Focus’ shares hit a high of Rs 31.15 and a low of Rs 29.70 so far during the day. The stock had hit a 52-week high of Rs 43.05 on 9 April 2013. The stock had hit a 52-week low of Rs 23.75 on 5 December 2013.