Category: Kids

MUMBAI: UTV Software Communications Ltd. has posted a consolidated net profit of Rs 34 million for the quarter ended 30 June 2006, same as in the year-ago period.

While revenue rose seven per cent to stand at Rs 523 million, operating profit was at Rs 46 million. The company has consolidated the financials of post production outfit United Entertainment Solutions Ltd (UESL), UTV-US, UTV-UK and UTV-Mauritius. The board of directors, in its meeting held today, have taken on record the un-audited consolidated financial results of the company and its subsidiaries.

Commenting on the quarterly results, UTV CEO Ronnie Screwvala said, “The first quarter of the current fiscal has witnessed a marginal growth in revenues over the same quarter last year. This growth is largely driven by the new shows in the television and A&S segments and film revenues have largely remained flat as most of our releases for this fiscal are during the third and the fourth quarter. The margins of the company haven’t shown a corresponding increase mainly because the new shows introduced would take some time to mature in TV and airtime sales business. In our animation business, during past few quarters we have focused on overall scale by strengthening order book, moving up the value chain by entering into production of DVD and theatrical movies and expansion of facilities. These investments are expected to translate into higher revenues and margins going forward.”

The UTV scrip shed 4.01 per cent to close today at Rs 167.35 in the BSE. Even in the NSE, it lost 4.23 per cent to end at Rs 167.60.

MUMBAI: UTV will be cash rich by Rs 2.36 billion as a fallout of the Walt Disney deal, allowing it to pursue movie and animation businesses on a large scale.

The preferential allotment to Walt Disney of 14.9 per cent of the expanded equity capital at Rs 192.5 per share will fetch UTV an aggregate value of Rs 654.5 million ($14 million). Founder-promoter Ronnie Screwvala will contribute Rs 360 million as UTV issues him 1,949,360 warrants, which are convertible into one equity share each, at the same price.

A further $29.3 million (Rs 1.35 billion) will trickle in from Walt Disney‘s buyout of Hungama TV, in a total deal size of $30.5 million with Screwvala getting $1.2 million for his 51 per cent holding in the Hindi kids channel.

“The huge cash UTV will be sitting on will help us leverage funds for future expansion of the company. Once we set out exercising the synergies with Walt Disney, we can substantially scale up the movies and animation business,” says Screwvala.

This line of optimism is making Screwvala protect his old stake in UTV. The issue of warrants will help him increase his shareholding in UTV from 42.38 per cent to 47.62 per cent before any issue of 3.4 million shares to Walt Disney. After alloting shares to Disney, Screwvala will hold around 44 per cent in UTV.

Screwvala plans to use the fresh capital to wipe out UTV‘s debt of Rs 900 million. “We will become a zero debt company,” he says.

So what will the master of deals take up as his next challenge? “UTV, which is currently at the helm of
affairs in its specific business segments in the Indian media and entertainment industry, is poised for its second stage of growth. As the Disney investment consummates over the next few months, post regulatory approvals, I am positive that UTV will enter a new phase of growth and strengthen its multi-revenue integrated model.”

On Screwvala‘s expansion plate is not just movies and animation but also new media content including gaming. Be prepared for acquisitions in this space. And Screwvala doesn‘t rule out the launch of niche channels. “We incubated and grew Vijay TV and Hungama TV before we sold out to News Corp and Walt Disney. We have the experience in the broadcasting space. With the emergence of digital platforms, there is scope to launch niche channels,” he says.

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Walt Disney to buy out Hungama TV, take 15% stake in UTV

MUMBAI: The Walt Disney Company today announced that it has entered into an agreement to wholly acquire Hungama TV and take a 14.9 per cent equity interest in media company UTV Software Communications Ltd, in each case subject to regulatory approval.

Disney has entered into an agreement to acquire 100 per cent of United Home Entertainment LTD (Hungama TV) at an enterprise valuation of $30.5 million and purchase equity stake of 14.9 per cent of expanded capital in UTV Software Communications LTD, at a consideration of $ 14 million. So, the total combined investment is $ 44.5 million.

The announcement confirms the news first put out by Indiantelevision.com that Disney would be buying into Hungama TV and picking up a small stake in UTV.

Hungama TV COO Zarina Mehta will be working closely with the Disney team for the next three months to ensure a smooth organisational and operational integration of Hungama TV into Disney‘s portfolio of kids channels. Post that Mehta will be working with Disney as a consultant for a period of six months to a year.

Once final, the acquisition will firmly establish Disney‘s ties in a rapidly growing media market where local content product is key. The combination of the three kids‘ channels — Disney Channel, Toon Disney and Hungama TV — will establish Disney as a strong contender against the market leader Turner India (Cartoon Network and Pogo).

“India is a long term strategic priority for the Walt Disney company. The acquisition of Hungama TV and the investments in UTV will significantly advance our presence in India and allow us to develop a strategic relationship with one of the countries leading integrated media companies,” said Walt Disney International president Andy Bird.

“Not only will we be acquiring a great channel asset, we will also be able to participate in UTV‘s diversified businesses and bring to UTV our global media and synergy expertise, including developing and distributing high quality family friendly content in nearly 200 countries worldwide and expanding related franchises across film, TV, music, merchandise, new media and live entertainment,” said Bird.

When queried on Disney‘s plans to launch a theme park in India, Bird answered in the negative. “We are not looking at a theme park in India,” he said.

“TV is and will continue to be the major growth engine in building franchise affinity in India. Integrating Hungama TV in the Walt Disney Company‘s existing India channel portfolio of Disney Channel and Toon Disney will allow Disney to fortify its already strong presence in India‘s kids TV market,” said Disney Channel Worldwide president Rich Ross.

When queried about the integration process of Hungama TV into Disney, Walt Disney Television International (Asia Pacific) senior vice president and managing director Nicky Parkinson said, “At present we are not sure how the integration will take place. We are in the process of finding out a way to best talk to kids. We are not here to cannabalise the market place. India is a relatively nascent market but one which has phenomenal potential.”

“Hungama TV has proven its appeal to Indian children and families with compelling entertainment choices and has in a brief period built a strong management team and sucked out a leadership position in the competitive children‘s TV environment. We are also delighted that Disney has chosen to make a strategic investment in UTV, which will augment our business in India and around the world,” said UTV group CEO Ronnie Screwvala.

Launched in September 2004, Hungama is a 24-hour Hindi-language entertainment cable channel for children and is currently in a close fight with Turner‘s Pogo channel for the the number two position in the Indian kids space behind leader Cartoon Network. Hungama TV has a staff strength of 71.

Disney currently reaches over 107 million television homes in India through a programme block on Doordarshan and Disney Channel and Toon Disney/Jetix reached approximately 30 million homes on cable and satellite in India.

UTV has a diversified set of businesses, which includes television and film production and distribution, animation production, and other services.

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UTV scrip up on Disney deal buzz

MUMBAI: More than six per cent of American adultsor about nine million web users, have downloaded podcasts in the past month, according to The Economics of Podcasting, a report released by Nielsen Analytics.

In a first quarter 2006 study, conducted by Nielsen Analytics at Nielsen Entertainment Television testing facilities in Las Vegas, more than 1700 participants were surveyed on their podcasting usage. About six per cent of respondents described themselves as regular podcast downloaders — more than 75 per cent of whom were male. The findings show that a significant percentage, approximately 38%, of active podcast downloaders say they are listening to radio less often.

Nielsen Analytics GM, senior VP Larry Gerbrandt says, “The incredible popularity of podcasting is the latest demonstration of consumers‘ willingness to take control of their media experiences. While essentially still in nascent form, podcasts offer free audio and video content that is inexpensive to create, easy to access and on a portable platform that has already reached mass distribution. This exciting new medium has only just begun to stretch its legs.”

The Economics of Podcasting is the latest in a series of reports from Nielsen Analytics on the “uber-media consumers” who lead the media industry in terms of trends and technology.

Key findings include

* The most successful podcasts are garnering as many as two million downloads a month, enabling them to attract mainstream advertising. An example — Dixie Paper Company now sponsors the Mommycast Podcast Series starring Gretchen Vogelzang and Paige Heninger.

* Overall, 60 per cent of respondents surveyed said they ‘always‘ fast forward past commercials in their podcasts. Women were more likely to fast forward than men, with 67% saying they always fast forward.

* Given the ability to skip commercials, advertisers are already devising more effective means to reach consumers, such as embedding their messages within the program content or having podcast hosts endorse their products and services.

* The survey found that the average length of the podcasts being listened to was 44 minutes. This may change with the growing popularity of video podcasts, which generally tend to be shorter.

* 72 per cent of respondents who regularly download podcasts say that they download an average of one to three podcasts per week. About 10 per cent of all podcast downloaders could be characterized as “heavy users”, downloading eight or more podcasts a week.

The Business of Podcasting

Among key findings of The Economics of Podcasting are that podcasts differ from other forms of online media delivery, such as conventional streaming and downloading. Like their largely text-based counterparts —
blogs — podcasts are being adapted by a broad range of businesses and organizations.
Among the various users:

* Cable and broadcast networks are converting episodes of some of their linear programs into cost-effective, short audio and video podcasts to serve as previews and promotions.

* Movie studios are exploring the potential of podcasting to market films and DVDs, such as a recent podcast promoting Paramount‘s Nacho Libre that features its star, Jack Black.

* Financial service firms, such as McDonald Investments and The Motley Fool, offer free podcasts on a variety of finance-related subjects.

* The online travel agency, Orbitz, offers audio descriptions of travel destinations as a marketing tool.

* With laptops and portable media players as ubiquitous on college campuses as textbooks, professors are making their lectures and class
notes available as podcasts.

Measuring Podcast Usage
The findings of this study also point to the importance of measuring podcast usage, so advertisers and the media industry will have a
comprehensive picture of who is using this innovative digital multimedia content

Gerbrandt adds, “For podcasting to reach its full potential, we will have to find the best ways to keep track of its audiences. That means developing accurate and comprehensive metrics that will allow podcast producers, distributors and advertisers to answer questions like: ‘Who are we reaching?‘ ‘With what kinds of content?‘ ‘When and how often?‘”

To that end, Nielsen Media Research, as part of its recently announced Anywhere Anytime Media Measurement (A2M2) initiative, is launching several projects that will explore how best to collect and measure podcasting data.

The first project, to be launched this fall, will measure a panel of 400 iPod users by utilizing a software application that can be downloaded onto a PC and interface with iTunes software.

Each time an iPod is connected to a computer to sync with iTunes, Nielsen will record all content accessed, and will provide detailed usage information. Starting in the second half of 2007, Nielsen also will begin testing its “Solo Meters” for portable media devices. The new meters will track audio and video usage on mobile platforms, whether users connect via BlueTooth(R) technology or a wired headset

MUMBAI: US kids broadcaster Cartoon Network has announced that it is developing its first massively multi-player online game (MMOG) in a partnership with a leading MMOG developer, Seoul-based Grigon Entertainment.

Cartoon Network New Media will debut the game in the US. This is the first-ever partnership between a US entertainment company and a Korean developer to create an MMOG for the global marketplace.

The Cartoon Network MMOG will launch in 2008 and target the growing and sophisticated kids‘ interactive gaming market. The game will be free to download, with subscription and micro-transactions available to players to enhance the gaming experience. New areas for exploration and play are planned and will be added regularly over a span of several years.

The game brings Cartoon Network‘s characters and sensibility to the online gaming realm with an “East-meets-West” creative approach. Grigon Entertainment is best known for successfully developing and launching several online games in Asia, including Seal Online, a light-hearted role-playing game (RPG) that took the online gaming world by surprise. Localized versions are available in Korea, Japan, Taiwan, China, Indonesia and Thailand.

Cartoon Network executive VP, GM Jim Samples says, “Cartoon Network is an immersive experience for our fans, and this MMOG will allow our fans to interact with their favorite characters like never before. Not only will kids be able to play with their favorite characters like Mac and Bloo, Ben 10 and the Kids Next Door, but they will also be able to develop their own online gaming personalities and interact, virtually, with other players in a safe way.

“This MMOG is a key part of Cartoon Network‘s growth strategy, and is an important complement to our mobile, broadband and existing online business. With the MMOG, mobile content, our Web sites and, of course, our linear network, Cartoon Network is always on for kids.”

Cartoon Network new media senior VP, GM Paul Condolora says, “Online games have been the most important driver of Cartoon Network New Media‘s success over the last few years. With more than 84 million U.S. homes expected to have broadband Internet access by 2008, and Cartoon Network‘s reach and creative vision, we‘re excited to enter the fast-growing world of massively multiplayer online gaming.

“In Grigon Entertainment, we have found a partner who understands how to build a successful MMOG for the casual marketplace. With our characters and creative direction, along with Grigon‘s experience and technical know-how, we think Cartoon Network‘s MMOG will have great success and longevity.”

Massively multiplayer online gaming has expanded in the US in recent years, with games like World of Warcraft and EverQuest achieving large and loyal followings. Most MMOGs have been driven by high-intensity fighting and action with fantasy elements and have attracted an older, adult audience. To date, few games have targeted younger audiences. In Asia and Europe, where broadband penetration is ahead of that in the United States, MMOGs have been developed for all audiences, from kids to teens and adults.

Cartoon Network‘s games will feature a persistent and expanding world, which will allow players to develop their own characters, attributes and possessions over the course of many months and even years. Players may also meet and interact with other players online, forming virtual friendships and communities. Cartoon Network‘s MMOG will be compliant with the Children‘s Online Privacy and Protection Act (Coppa) and will offer a safe gaming environment for players.

MUMBAI: US media conglomerate Disney is reorganising its film division. The movie studio is looking to axe 650 employees in an effort to trim $90 to $100 million from its annual bottom line.

One of the first people to lose their jobs is Nina Jacobson who was the head of the Walt Disney Motion Pictures Group.

Media reports indicate that Disney Studio chairman Dick Cook had a conversation with Jacobson. Jacobson‘s role will be taken up by Oren Aviv who was the marketing and chief creative officer.

In a statement Cook says, “Disney is the number one name in filmed entertainment around the world. It‘s the name on the door, it‘s what we do best, and when we do it right, not only do moviegoers of all ages benefit from the finest in quality entertainment, but it lifts the entire company as well. The depth and breadth of great Disney movies range from Pirates of the Caribbean to Cars to The Chronicles of Narnia and we look to expand our global reach even more. Cutbacks such as these are difficult on so many levels, and we will do everything in our power to make the transition as smooth as possible.”

As had been reported earlier by indiantelevision.com that Disney is set to cut the number of films made each year from 18 to eight. What is interesting is that Jacobson had argued with M Night Shyamalan about the script for his new film Lady in the Water. The tepid reviews that the film is getting indicate that her concerns were not misplaced. The relationship between Shyamalan and Disney came to an end as a result of the dispute.

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Disney set to cut down on costs with fewer films

MUMBAI: The Walt Disney Studios will be making a strategic shift toward more Disney branded movies. The studio will produce and distribute approximately 10 Disney live-action and animated films a year and 2-3 Touchstone films a year. The announcement was made by The Walt Disney Studios chairman Dick Cook.

Cook said, “Disney is the number one name in filmed entertainment around the world. It‘s the name on the door, it‘s what we do best, and when we do it right, not only do moviegoers of all ages benefit from the finest in quality entertainment, but it lifts the entire company as well. The depth and breath of great Disney movies range from Pirates of the Caribbean to Cars to The Chronicles of Narnia, and we look to expand our global reach even more.”

To accomplish this objective, Cook has tapped Oren Aviv as president of production, Walt Disney Pictures. Aviv will oversee the live-action development and film production for the Studios.

“Oren is an amazing talent and has been a key player in reshaping our Disney films with many successes. In fact, National Treasure was a winning, original idea which he conceived and realised on film. In his new role, we look forward to capitalising on his great taste as well as his creative vision,” continued Cook.

“Walt Disney Motion Pictures Group president Nina Jacobson, will be leaving the company, and while she will certainly be missed, we greatly appreciate her many contributions,” said Cook.

In another strategic move, The Walt Disney Studios has restructured several of its business units under two global organisations – Buena Vista Worldwide Marketing and Distribution, and Buena Vista Worldwide Home Entertainment. Mark Zoradi has been appointed president of Walt Disney Motion Pictures Group and will oversee the distribution and marketing of all Disney and Touchstone Pictures films worldwide. Robert Chapek has been named president, Buena Vista Worldwide Home Entertainment, and will oversee the worldwide distribution and marketing of all the Studio‘s films on Home Entertainment platforms.

“The consolidation of global marketing and distribution is extremely important as we continue to adapt to the vastly changing world. To lead this charge we have the best team in place with Mark and Bob. Mark is a consummate professional who along with his team has had unprecedented success in the international marketplace with 12 consecutive years surpassing the $1 billion dollar mark. No other distributor has crossed this performance threshold. Bob is an innovator in every sense of the word and has helped our studio achieve countless DVD successes, and that leadership will translate well into his new global responsibilities,” said Cook.

Another executive appointment will include Jim Gallagher as president of marketing for Buena Vista Pictures Marketing.

Cook added, “Jim is as smart as they come and has great taste and creative instincts, not to mention an incredible sense of humor. I‘m thrilled he has taken on this very important role.”

With this new global infrastructure in place the Studio is expected to reduce its work force by approximately 650 positions worldwide. “Cutbacks such as these are difficult on so many levels, and we will do everything in our power to make the transition as smooth as possible,” said Cook.

Walt Disney Feature Animation, Pixar Studios, Miramax Films (led by Daniel Battsek), Buena Vista Music Group and Buena Vista Theatrical Productions will not be affected by this reorganisation.