ITV

Category: Movie Channels

  • ‘Max will see 15-20% ad growth this year’ : Executive Vice-President and Business Head of Max and Sony Mix Neeraj Vyas

    ‘Max will see 15-20% ad growth this year’ : Executive Vice-President and Business Head of Max and Sony Mix Neeraj Vyas

     

    Neeraj Vyas, the Executive Vice-President and Business Head of Max and Sony Mix, is excited with the way the year went for Max, the Hindi movie channel from Multi Screen Media (MSM) stable.

     

    As the head of Max and Mix, Vyas has two challenges before him. The first is to take Max to the top position. The channel‘s strategy will be to acquire as many blockbuster movies as possible but at the same time remain judicious with the acquisition prices.

     

    The second challenge for Vyas is to grow Sony Mix, the music channel that was launched last year to widen the bouquet. The key for Mix, which operates in a tough genre, is to differentiate itself from other music channels through its programme offering while at the same time control costs to become viable.

     

    In an interview with Indiantelevision.com‘s Javed Farooqui and Urvi Malvania, Vyas shares his thoughts about the two channels and the way forward.

     

    Excerpts:

     

    Has the rise of Star Gold and the launch of its sibling channel affected the existing movie channels?
    Strictly from the ratings point of view, barring the first two months and post the IPL, it has been good for us. If you look at the ratings that were available three weeks back for the first 8-9 weeks, there is very little difference between the three of us – Star Gold, Zee Cinema, and Max. We have also had a successful movie acquisition year.

     

    How dependent is Max on big-ticket movie acquisitions as it has a premium positioning?
    Movie channels are completely driven by the library they have. Max has managed to have a premium image. It‘s completely by design and not by default because it‘s the way we want the channel and it‘s the way we present the channel. It‘s everything that you see on-air — the entire movie experience and our packaging. We want to set ourselves apart from others and hence did Extra Shots last year, a property where you get your trivia during the break and also put that into a half-an-hour show. This year we did something called Dirty Khabar.

     

    Does the premium positioning help Max get higher ad rates?
    It has helped us to extract premium from the advertisers. There are a lot of lifestyle brands, a lot of brands that are very conscious of the kind of environment they are seen in from an imagery point of view. If the advertisers have a choice between two or more channels, then Max will always be preferred.

     

    Did the ad slowdown have an impact on Max‘s revenues?
    There was no ad slowdown. In fact, we will see at least 15-20 per cent growth this year. The ad market for Hindi movie genre is a little under Rs 1,000 crore (Rs 10 billion).

     

    ‘The music genre accounts for about Rs 4 bn and is growing at 15% annually mainly due to new channel launches. We have set a 3- year period to break even‘

     
    What is driving this growth?
    There is money in the market, brands are being launched, and there are marketing activities. So there is no slowdown in my opinion. It (the slowdown) was a myth that was being created. At least till November or probably mid-December, we are tight on our inventory and are completely sold out.

     

    But there are broadcasters who have felt the pinch of ad slowdown?
    You tell me which broadcaster has slowed down in terms of content. Has anybody pulled back any shows? Despite no ratings, every GEC is going ahead with their biggest shows. There are two-three reality shows running on all the channels which are hugely expensive properties to produce. GECs are doing one-hour specials of their fiction shows and movie channels like us are marketing and putting more blockbusters on-air. Why would people do all these things if there was no money in the market? Give me a reason. I think the same people (who talk about a slowdown) need to answer this question.

     

    After a lull last year, has there been a spate of movie acquisitions this year?
    Yes, there was a lull. The way it (acquisition) works is if I have to acquire a film, I have to do it a good year-and-a-half before the film is released. If a producer doesn‘t get the price he wants, he waits for the box office performance of his film. Depending on the success or failure of the film, the price gets decided. The trend these days is strange as you have to acquire movies upfront. It sometimes works for you and sometimes it doesn‘t, so you have to be judicious.

     

    Has there been a price correction in acquiring movies?
    Unfortunately, what happens is that this industry is driven only by seven to eight stars. Unless we have more stars it will continue to be dominated by these 7-8 stars and it‘s essentially these men who lead the prices — the Khans, Akshay Kumar, Ajay Devgn and Ranbir Kapoor. If the price is going to be determined by these 7-8 stars, then their films will be sold at a premium.

     

    But a large number of movies go unsold?
    That is because the films of only these 7-8 guys get the ratings. For example, a film like Vicky Donor was liked by many but on television it won‘t get you a rating of even 1.5 TVR. Ratings for most GECs and time spent for channels like us come from the interiors of the country and the audience in the interiors is for films like Singham and Rowdy Rathore. That‘s the reality.

     

    Do you think acquiring movies on the basis of box office success is the criteria to follow?
    Honestly, that can be misleading. For example, Barfi is a brilliant film but put it on TV… probably it will get a rating of 2-3 TVR in the first airing, but it‘s not a movie that will get sustained ratings. Movie channels have a different model. When a film airs on television 10 times a year it has to give a certain yield and it has to give certain GRPs. As I said, the viewership comes from the interior.

     

    Zee walked out of the Barfi deal because at such high price point the monetisation becomes impossible. A correction is needed. It‘s a no-brainer. Zee‘s refusal to acquire Barfi rights was a step in the right direction. It also serves as a wake-up call for the producers or the corporates producing high-budget films. They have to get the pricing right irrespective of the box office collection because that is not connected to the success of the film on TV.

     

    Many networks have also experimented by premiering movies on GECs rather than the movie channel?
    That is a calculated gamble. Sometimes it pays off, sometimes it doesn‘t. It‘s a high-risk game because the price points of both the genres are hugely different. A GEC would trade at a certain level. Unfortunately movie channels have been under-priced since the beginning. By the time we start doing corrections, it is going to take time. The kind of money we recover on GECs will be far higher than on a movie channel. The yield is higher on GEC which is why we as an organisation have taken a decision to air certain movies like Paan Singh Tomar on Max but movies like Ek Tha Tiger and Rowdy Rathore will always be on Sony from a monetary point of view and its working for us. Once Sony has its one or two runs, it comes to Max and it really doesn‘t make a difference. What this does is safeguard our revenues and we manage our ratings better.

     

    How long does it take for a broadcaster to recover costs?
    For us it probably takes a little lesser time because we premiere on Sony. Our recovery is higher. It takes anywhere between two to three years to recover the costs. We acquire movies for a minimum of five years. We have a library of 800 movies and all of them are exclusive.

     

    Next year, IPL won‘t be there on Max since it will move to Sony Six. So what is your strategy going to be?
    We are a Hindi movie channel and we are happy that IPL is moving out. IPL moving out is a blessing for Max since we will get an opportunity to do a lot of things in the Bollywood space.

     

    Most Hindi movie channels also have dubbed content. How is it working?
    Almost 25-30 per cent of the content is dubbed and it is working. The prices of dubbed movies have also gone up although I can‘t give a number. The dubbed content adds variety to the channel. People in UP and MP don‘t know the actors but they love the action. Most of the South Indian films are in the realm of vendetta, revenge, high octane action, family values and so on. These are qualities that fit very well with the sensibilities of the heartland. Indian movies are Indian movies. People might look different but the basic ethos will always remain the same. The trend in Bollywood is that every big film that is going to come will be a remake of some or the other Southern language film. Everyone has acquired remake rights whether it is Salman Khan, Akshay Kumar or Aamir Khan.

     

    What implications will digitisation have on the genre?
    We are governed by the reality of libraries that we own. We will be able to run a large number of movies that we have not telecast. Hopefully, we will also get the opportunity to reach out to slightly more premium audiences. Also films like Silsila, Kabhi Kabhi, Rocket Singh and Saawariya which are rotting in our library will be able to see the light of the day.

     

    Coming to Sony Mix, how do you differentiate the channel from the other players in the genre?
    We decided to be a channel that is musical and understands the mood of the people. Our programming corresponds to the time of the day. So we have Surili Subah in the morning, Ishq Vishq in the afternoon, Mix Adda in the evening right up to Raina Beeti Jaaye, which is the slot for the retro songs. The promise of the channel is that we understand viewer‘s mood at different times of the day. We also went ahead and bought more music than anybody else simply because we wanted variety. So when other channels were playing the free plays and the new music launches, we went ahead and did deals with Yash Raj and Sony Music.

     

    What about your original content?
    We have a property called Mix Solos which has singers like Javed Ali, Roop Kumar Rathod and Shafqat Amanat Ali doing acoustic solos for the channel between songs. Then we have something called Mix Tippani where the channel suggests which song to listen to in which situation. We also have a show called Picture Abhi Baki hai. Here we take bytes from the actors, directors, music composers, singers etc — all with focus on the music and nothing else. It is like a sneak peak with focus on the music of the movie.

     

    These are the things that set us apart and we want to continue doing them. We want to do Harmony again which was on Sony 10 years back. We would love to revive that and have a show that has pure unplugged music. We also had a show “Yun Bana Yeh Song” with Swanand Kirkire where he explained how a song was made and took the viewers through the journey of the song. We have also brought back a lot of videos from the 90s that were huge back then. You see, you have to have a Mix of music for a music channel to be called a music channel.

     

    What is your primary TG? And what was your strategy when you launched Mix?
    Our primary TG is 15-24 age group, while our secondary TG is the 25-34 age group. We would never dilute our focus on the secondary TG. We firmly believe that you can‘t just cater to the youth which is why we have a Raina Beeti Jaaye at night. Music transcends age and we are going against the grain and not doing what everyone else is doing in the genre. Our belief is that it will pay off with digitisation and people wanting to make a choice.

     

    How tough is it to sustain a Hindi music channel?
    If you control your costs, then it is viable to have a music channel. But it is a tough game. We make use of our synergies with Sony Music and YRF. The challenge lies in how you programme your day as everyone has the same content in this genre. The brick of three songs before you go into an ad has to be so strong that it appeals to the audience.

     

    How is the revenue split between distribution and advertising?
    Distribution is negligible as a source of revenue right now. It‘s completely dependent on ad revenue. We have a wide range of advertisers come to us due to our programming. We have a broad base of viewers and though we are packaged as young and happy, our appeal is across age groups. You have to build the proposition based on the core values. The music genre accounts for about Rs 4 billion and is growing at 15 per cent annually mainly due to new channel launches. We have set a three-year period to break even.

  • Zee Cinema celebrates Dussehra with’Bollywood’s Most Wanted’

    MUMBAI: In keeping with the core theme of Dussehra where’Good triumphs over Evil’, Zee Cinema is currently treating its viewers to a 10-day movie festival that celebrates the villains of Hindi Cinema -‘Bollywood’s Most Wanted’.

    Zee Cinema will air at 9 pm movies such as Sholay (20 October), Agneepath (21 October), Zanjeer ( 22 October), Shahenshah (23 October) and Ram Lakhan (24 October).

    The’Bollywood’s Most Wanted’ festival has so far aired Mr. India, Karma, Shaan, Vishwatama and Laawaris.

    As a part of the promotional campaign for the’Bollywood’s Most Wanted’ festival, Zee Cinema has created an application on Facebook that allows users to morph their friends’ pictures and give them an interesting’Ravan’ look.

    According to the channel, in three days the fan base of Zee Cinema’s Facebook page shot up by more than 40,000 followers, crossing 1,00,000 users.

  • ‘BCCI rights great opportunity to build Star’s sports biz’ : Star India CEO Uday Shankar

    ‘BCCI rights great opportunity to build Star’s sports biz’ : Star India CEO Uday Shankar

    Just over a year old, UTV Stars is banking on revenue growth from advertising, syndication and distribution to achieve operational break even this fiscal.

     

    The launch of UTV Stars last August has expanded the Bollywood lifestyle TV genre, created by Zoom and E24. The core target audience of the channel is upscale youth in the age group of 15-24 years.

     

    In an interview with Indiantelevision.com‘s Javed Farooqui, UTV Stars business head Nikhil Gandhi talks about the channel‘s progress, its differentiated content and the challenges in the space.

     

    Excerpts:
     

    Does UTV Stars get a competitive advantage by being the child of Disney-UTV?
    We definitely have an edge as we have got a thriving motion pictures business. This allows us to do that much more compared to our competitors. Our access to the big Bollywood stars such as Shah Rukh Khan, Salman Khan, Kareena Kapoor or a Hrithik Roshan is much easier. If you see the kind of news content that we create, we are credible.

     
    Since UTV Stars‘ sister arm also produces movies, doesn‘t that also present a conflict of interest while covering Bollywood news?
    Once you have established yourself as a credible player in the space, I don‘t think any star or film producer would think that there is a conflict of interest. They, in fact, would want to promote their films that much more. Moreover, our editor is Manish Dubey who was with Aaj Tak and has credible bondage with the movie stars. Also, our correspondents as well as special features editors have professional relationships with all the big superstars.

     
    Isn‘t differentiation very thin in this kind of genre?
    When we started, we positioned UTV Stars as the official channel of Bollywood. We were also known as being the intimate insider to Bollywood. We got all the big stars to endorse and that reflected in our launch campaign. We did a big chat show with Priety Zinta. We also did a show called ‘Live My Life‘ which is coming up for its second season after the channel‘s first anniversary on 19 August. Our channel is also available in High Definition, taking the viewing experience to a whole new level.

     
    How is your content mix different from other rival channels?
    On a daily basis, we have three and half hours of original content while the others offer three hours. So we have half-an-hour of additional content. This is largely because we have original long format shows, giving our channel a differentiated value. You won‘t see big ticket reality shows on other channels.

     

    We run Bollywood music and movies but news and shows form a large portion of our prime time content. We play music in non-prime time because the TG loves it and because Bollywood music lends itself well with the channel. 

     

    ‘On a daily basis, we have three and half hours of original content while the rival channels offer three hours. So we are half-an-hour of additional content‘
     

    How would you define your target group?
    We are in the youth space but have a definite skew towards Bollywood. In terms of demographics, our core target group is 15-24 SEC AB. Bollywood stars influence the youth of India a great deal. In that sense, the kind of content that we have created caters to the Indian youth. So even though Bollywood content cuts across age groups, we are going to focus on youth particularly after the kind of success that we have seen online.

     
    Could you elaborate on the online growth?
    We have almost half a million fans on Facebook. We are also the largest content provider for Bollywood content on YouTube and have already got 30 million views. We power the UTV group content engine on YouTube per se including UTV Motion Pictures. We have got 10,000 hours of content that we had shot last year. All this gives us a cutting edge.

     
    What is the break even period that you have set for yourself?
    We are looking at an operational break-even next year (FY‘ 13). With the kind of control that we have on our costs and if the markets start improving, we should be able to reach that milestone.
     

    What impact did ad slowdown have on your revenues?
    We experienced a bit of a volume loss but our big shows also get a premium. The advertising community is also appreciating the kind of content that we have been able to create and they are now talking to us for annual deals going forward.

      
    Who are your big advertisers?
    We have all the top advertisers that occupy the youth space. Like in FMCG, we have Hindustan Unilever, P&G and L‘Oreal. We run about 10 minutes of commercial in one hour of programming, which can go up to 12 minutes. 

     
    What are the major revenue streams for UTV Stars?
    Currently, ad revenues contribute 60-75 per cent of our overall revenues. But we would like to bring this down to 50-55 per cent and with digitisation we are hopeful that this shift will happen. We are also looking at syndication opportunities overseas as well as in India. We are already syndicating in-flight entertainment across big airlines. Our business model includes distribution, syndication, video on demand, ad revenue and on-ground events.

     
    You have been quite aggressive with on-ground properties?
    So far as ground connect goes, we have been able to rope in partners who are in the lifestyle and Bollywood space. So we had partnered People magazine to do the ‘People Best Dressed‘ show; we had also partnered Cosmopolitan to do ‘Free Fearless Awards‘. Besides, we also did ‘F1 After Parties‘ with Arjun Rampal.

     

    However, the biggest property we did was ‘Walk of the Stars‘ at Bandra Bandstand (Mumbai) where we had the biggest stars giving their hand impressions. It‘s like the Hollywood Walk of the Fame. We got the Walk of the Stars branded as UTV Walk of the Stars as a permanent structure and it has also got statues and benches of legendary stars from Raj Kapoor to Shammi Kapoor and now Rajesh Khanna. We are taking it to Delhi next year and it‘s going to be available at Kingdom of Dreams. We tied up with IIFA Awards this year and took this property to Singapore. 

     
    What big shows are on the anvil?
    There is ‘Nirma Lifestyle‘ season 2 that is coming up in the quarter beginning October. We have another show called ‘Gods of Style‘ coming up where we are going to showcase top 10 style icons in Bollywood. We have four more shows in the pipeline about which I can‘t reveal much at this stage.

     

  • ‘Pix’s growth has upset the balance in the English movie genre’ : Pix business head Sunder Aaron

    ‘Pix’s growth has upset the balance in the English movie genre’ : Pix business head Sunder Aaron

    The English movie channel space has seen a shake-up. The power centre has been upset with the growth of Pix and the onslaught of new entrant Movies Now. From being a two-horse race, now there are four – Star Movies, HBO, Movies Now and Pix.

     

    Having acquired the library of its parent Sony Pictures Entertainment, Pix is making a bigger push in a market that is getting more competitive.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Pix business head Sunder Aaron talks about the rise of the channel, the challenges the genre faces and the opportunities to grow the market.

     

    Excerpts:

    What have been the focus areas of Pix this year?
    To capture moré and more good content, given the competitive nature of the market; to ensure that the channel is distributed on the right networks and in the right position; and to create an environment for viewer stickiness.

    How far has Pix gained from the output deal with parent Sony Pictures Entertainment?
    The perception about Pix among viewers and advertisers has changed as we have moved from a library to a contemporary movie channel. It is easier to change attitudes and perceptions of younger audiences as they do not have an inherent commitment to another channel like HBO or Star Movies.

     

    Among our target audience, we have beaten HBO since January. The aim is to become No. 1 eventually. We will continue to focus on getting the right content and building distribution.

    Could you talk about how Pix has evolved since launching five years back?
    The appearance has really evolved since we launched the channel with library content. The channel went through a massive packaging overhaul in May-end. Our promos look a lot more younger. We are playing bugs; we also give trivia information for some of our key titles.

    What are the changes you have brought on the programming front?
    We were the first ones to create a single ad break movie slot. We also realised that the afternoons and late nights are the non primetime hours where the viewership is growing.

     

    Younger audiences come in during the 12:30 pm-4 pm time band. Our programming is geared towards addressing that audience who are mainly college going.

     

    In the last few weeks, two new things have happened. One is ‘Awesome Saturdays‘ where we have lined up the evening with popular movies. And on Sundays we focus on the 12 pm-4 pm time slot with an initiative called ‘Sunday Breakout‘. This is how we are pushing the weekends.

     

    We are doing the Dynamite Diwali festival, which takes place on weeknights at 11 pm. In November, we will have an even bigger stunt. It will probably be called ‘Big Guns of Hollywood’.
    ‘The perception about Pix among viewers and advertisers has changed as we moved from a library to a contemporary movie channel. The output deal with Sony Pictures Entertainment has helped in this‘

    What about thematic blocks?
    We had started this when we launched five years back, but have moved away from this as we evolved. When your channel does not have a strong identity or presence, you need to build points which can draw in viewers. However, we continue to do festivals.

    When Pix launched, it skewed towards 25+ audiences. Now where do they come from?
    We focus on 15-34 SEC A,B, across six metros. But from a programming perspective, we are inclusive in nature. Older viewers also watch us. We continue with properties like ‘Hand Picked‘which consist of movies that have a strong drama quotient.

    Is this genre seeing more of appointment viewing than say two years back?
    My suspicion is that it is not there. When HBO had groundbreaking series like ‘Sex And The City‘, this was there. Also, when Star Movies had ‘Avatar’ people probably made a point to come in, but they have shown it 30 or 40 times. So you don’t have to make an appointment to view it. I don’t think that it is possible to build it any longer.

     

    People watch movies in different ways – DVDs, online, on their ipad. So why would you have to make an appointment at 9 pm to sit in front of a channel to watch a film? I don’t think that channels compete on this basis anymore. Competition is on the basis of content, perception and profile.

    Is channel loyalty falling?
    Yes, but this is the case across television and is not something specific to the English movie genre. There is more programme than channel loyalty. There is a residual brand presence in the consumers mind at the same time.

    Has the market dynamics for the genre changed dramatically?
    HBO and Star Movies were the leaders. Pix has grown, which has obviously upset the balance. Then Movies Now came in and upset the balance even more.

    Movies Now has made an impact by focussing on popular films. Does that mean that premieres have lost a bit of their value?
    I think that Movies Now has been clever and there have been elements to their success. One is that they selected films that are widely known and recognizable. Another big factor is that they got the distribution right; they invested a lot in positioning themselves properly. The third factor is that you cannot underestimate the value of the Times support.

     

    But I wouldn‘t say that it diminishes the value of premieres. It does show that Indian audiences still have an appetite for movies that are familiar to them. But when Pix showed ‘The Karate Kid‘, it was a premiere and propelled us to the No. 1 spot.

    Is there going to be more focus on original shows like ‘Gateway’?
    Yes! But there is a challenge as it is costly. We are talking to sponsors about bringing back ‘Gateway’ in a different form that will be even more exciting. Currently, we do specials from time to time. ‘Chicks on Flicks’ does things on premieres. We will do new series in a couple of months.
    How is the deal with the NBA working out?
    It is working out well. The big challenge, though, is that the NBA is in a lockout; they have not started the season. The players’ union has not come to an agreement with the owners to start the season. The season will get delayed.
    Are you looking at more sports properties to build reach?
    We are careful. The NBA is enough; if we put more, it will look like a sports channel.

    How are you pushing distribution?
    We are attempting to go beyond the six metros. DTH has shown how we are consumed in other markets as well. We are looking forward to cable digitisation.

     

    I don‘t want to rely so much on ad revenue. But we don‘t get our due in terms of subscription income. Carriage fees rise every year while subscription revenue is not keeping pace with it.

    Between the different mediums, how is your spend split?
    It is defined by the film and not by the city or medium. Flexibility is needed in planning. For instance, if we use radio this month, then next month we may or may not use it at all.

     

    I would say that online is a very effective medium. It is highly flexible.

    Could you give me a couple of examples of innovative campaigns that have been done this year?
    We did the ‘Hollywood is Here‘ campaign where we used clustered outdoor. In Chowpatty (in Mumbai), we took six to seven hoardings together. In Delhi, we used a cluster of 10 mobile vans standing in one line. We showcased our positioning and the new titles that were coming up.

     

    For ‘The Social Network‘, we could not use Facebook as a medium. So we used radio and hoardings. People knew Mark Zuckerberg but not the film’s star Jesse Eisenberg. The thought for the campaign was the sexiest man alive; this created an intrigue.
    How are you growing consumer contact initiatives like the Pix Movie Club?
    We have touched 10,000 members. We are in Mumbai, Delhi and Bangalore and we want to take it further down next year. We haven‘t decided on whether or not to rope in advertisers for this.
    Are you looking at more marketing initiatives?
    We are looking at doing something online. We are working on the details. For me, online marketing is about an idea and not just taking out a bunch of banners across sites.
  • ‘Now there are four key players in the market’ : HBO South Asia country manager Shruti Bajpai

    ‘Now there are four key players in the market’ : HBO South Asia country manager Shruti Bajpai

    Adopting an aggressive posture, HBO is giving a push to its content as competition turns fierce in the English movie channel space.

    After its deal with Sony Pictures Entertainment (SPE) ended, HBO stitched deals with 16 studios. The focus will continue to be popular blockbusters, cutting edge titles and original content.

    The entry of Movies Now has shaken up the market and from a two-horse race it now has four key players. HBO, however, is looking at a double-digit growth this year and has brought in new category of advertisers to the genre.

    In an interview with Indiantelevision.com‘s Ashwin Pinto HBO South Asia country manager Shruti Bajpai talks about the challenges that the genre faces.

    Excerpts:

    New entrant Movies Now seems to have upset the applecart, pushing HBO to the third position. How do you plan to bounce back?
    Rating fluctuations are normal for any channel in this business. As the number of players grow, it is more important for the category to expand. As for HBO, there’s no reason to feel threatened because of the sheer differentiation in terms of our content. We are the only channel with the capability to bring the most popular blockbusters, cutting edge titles and original content. In terms of both quality and quantity, we are still unmatched.

    Movies Now’s strategy of showing popular films that have high repeat value seems to have worked. So have premieres gone down in value?
    No! That counts for a lot in terms of brand perception. At the end of the day it is about what your brand stands for. We show more premiere blockbusters than any other channel. Our focus is on having more premieres, strengthening our franchises and telecasting HBO Originals. Our USP is to offer something for everyone and be a one-stop shop.

    What impact are the new players having on the genre?
    From being just two key players in the market, now there are four – HBO, Star Movies, Movies Now and Pix.

    After HBO’s output deal with Sony Pictures Entertainment ended, how have you lined up content to take on competition?
    We have, in fact, expanded our content pipeline. Last year, we stitched deals with 16 studios. We have the very best of blockbusters like ‘Ironman 2’, ‘Inception’, our popular franchises include Rocky and Bond. We have cutting edge titles like Blind Side, Stieg Larsson’s Millennium Trilogy and ground-breaking original content like Temple Grandin.
    ‘There are plans to expand the base in India and HD will be a part of that‘

    Movies Now was the first HD channel in the English movie genre. Is HBO looking at HD feed?
    There are plans to expand the base in India and HD will be a part of that. We can’t really speak for others, but HBO has a multi-channel and HD presence in most of the countries across the globe. India will be no exception.

    Content costs are escalating due to intense competition in the genre. Has revenue also expanded?
    Rising content cost is a factor, but a point of concern more for our competitors and relatively less for HBO. Unlike the rest of the channels which are mostly home-grown or only operational in Asia, HBO is a global player with widespread presence. With multi-year output deals with three studios – Warner bros, Paramount and Universal -and content from 16 other movie companies, we are best equipped in the genre to manage content acquisition costs.

    English movie channels in combine earned an ad revenue of Rs 3 billion last year. Will the genre post a 20 per cent growth this year?
    Though this year has been a bit challenging for all non-sport categories with high influx of cricket, we wouldn’t like to speculate on what the genre has made. English movies has always been a very sought after genre with a wide variety of advertisers and HBO being the most preferred channel in this category, has maintained the growth rate as per the previous years.

    What revenue growth is HBO targeting this year?
    HBO has always maintained double-digit growth numbers and this year will be no exception. We don‘t have advertisers; we have partners.

    We are also perceived as a very premium, international brand among the viewers as well as the advertisers. Many high-end and prestigious brands like Audi and BMW spend a large chunk of their marketing budgets on HBO. In the English movie channel genre, we command the highest rate for our inventory.

    Are you tapping into new categories?
    Yes. In fact, this has been our biggest success this year. We have added more than 30 clients this year, with far more contribution from new categories. It’s our high value perception that has helped us bring some non-traditional categories like real estate on board.

    What are the challenges the genre faces?
    English movie and entertainment channels face the same challenges as any other channel in the country – intense fragmentation. In the last couple of years, this category has seen a significant number of new entrants. HBO, however, has always stayed a step ahead of the game. Since inception, we have been one of the strongest players in the market with superior content and high value to advertisers and viewers alike.

    The DTH base is growing rapidly. Are you looking at content innovations for this platform which can yield more revenues?
    Yes! As the base grows, there is a need to tailor content for DTH.

  • ‘We focus on films that have high repeat value’ : Movies Now channel head Ajay Trigunayat

    ‘We focus on films that have high repeat value’ : Movies Now channel head Ajay Trigunayat

    he English movie channel genre is sized at Rs 3.25 billion and is expected to grow at 20-25 per cent due to the entry of new players.

    The competition among the channels has grown the number of advertisers to 340 in 2010, up 21.4 per cent from the year-ago period, which had attracted 280 advertisers.

    Companies advertising more on this genre are the new telecom companies, automobiles, electronics and white goods. FMCG, though, continues to be the largest ad spender.

    Barely three months old, Movies Now from the Times TV Network stable is looking at doubling its advertising rates as it claims leadership among a specific upscale young audience group in the metros.

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Movies Now channel head Ajay Trigunayat talks about the growth of the genre and how important it is to build a library that stresses on repeat value potential.

    Excerpts:

    We are seeing new channels coming into the English space, be it movies, entertainment or lifestyle. What factors are fuelling this boom?

    India is riding on a robust cable and satellite growth. The television household universe has grown from 128 million homes to 145 homes over two years. Within this cable and satellite has grown from 84 million to 110 million.

    There is also healthy digital growth happening. The number of digital homes will touch 30 million by the end of the financial year. Cricket will fuel this growth.

    Channels are looking forward to being able to charge the right price to the consumers, so that they can make the right amount of subscription income.

    What will new entrants do to the English space?

    I believe they will grow the genre. Earlier, you had HBO and Star Movies dominate the English movie genre; nobody challenged their viewership. Our aim is to challenge the status quo of these two players.

    Simultaneously, Star World and AXN dominated the English general entertainment space. Reliance launched a channel, but so far it has not caught the fancy of the viewers. It is important to build the right distribution and the right content.

    What do viewers expect from the English movie genre?

    Their expectations have changed dramatically over the past decade. Earlier, it was important that at 9 pm Terminator 2 would show and you would watch it. Now with a plethora of channels coming in, viewers no longer make appointment viewing. They surf across channels.

    People do not watch a whole movie anymore. They might watch a segment of a movie that they like again and again. There is a dramatic shift to random viewing. This determines how you place content and schedule it. Content selection makes a lot of difference.

    Why did The Times Group launch an HD channel now?

    We decided to look at a key differentiator for Movies Now as our content has played on other channels. We decided to provide the best audio and visual experience.

    As you go along, most channels will be in high definition. The Times Group has a commitment to deliver the best readership or viewership to the upscale audience.

    What challenges do you face?

    Doing an HD channel poses its own challenges. We are a completely tapeless library. We use the best of servers and post production facilities. We use half the space for HD that you would need in standard definition. There are cost benefits that we are trying to exploit.

    But moving from SD to HD is a learning curve for the organisation. If Star Movies and HBO want to do it, they can just transfer their experience in other markets to India. We had to start from scratch. So it took a little longer for us to launch compared to a broadcaster, who is already running HD feeds globally.

    ‘Competition gets Rs 3500-5000 per 10-second spot. We want to reach Rs 3000 per spot by increasing the effective rates by 100 per cent over the next three months‘
     

    What investment has been made and what targets have been set for the year?

    I cannot talk about figures. However as a Group, we believe in being No. 1. Movies Now is ahead of the competition, if you look at C&S 15-34 SEC A,B metros, we have a 34 per cent share in this segment.

    We are not into running new movies. We focus on films that people want to watch over and over again. People watch films like True Lies over and over again. They are not interested in films like The Hurt Locker, The Curious Case of Benjamin Button, though that may be the popular perception. If you can manage and create a library which has high repeat potential, then you will be successful.

    We have also gone for top of the line high definition. This is not pseudo high definition 720p. This is 1080i. We deliver 5.1 surround sound. When we launched, our GRPs jumped to 77 which was an 80 per cent category growth. The category has settled at 68 GRPs. Only in Hyderabad are we behind due to issues of distribution, which we will crack in due course.

    In the last 12 weeks, eight out of the top 10 movies are ours. On the weekends, we are ahead apart from two weeks. Our distribution is at par with competition. We caught up with Star Movies in the last three weeks.

    What time frame has been set to be profitable?

    Most projects set a time frame of three to five years. For us, though, given the start that we have got, we expect to break-even faster.

    But when you have more players content costs go up. Isn’t this a challenge?

    It is. High content costs put pressure on the bottom line. Over the past six years, costs have gone up by around 3.5 times for this genre.

    Earlier, it was a buyer’s market. That started changing when Zee’s deal with MGM ended; they had to buy titles from other distribution companies.

    Revenue can be difficult to push for as there are options for clients. But we have a 34 per cent channel share in our target segment. We want to increase our effective rates by 100 per cent. The key challenge for the next quarter is maximum monetisation, based on our channel’s performance.

    But since you do not have premieres, aren’t content costs much lower than competition?

    Not really! We play the best of the best content. When you pick up a Titanic or a True Lies, you pay for it. But if you just want those titles, you have to pay a significant premium as you are not picking up other stuff from the studio. We deal with studios including Sony, MGM and Warner.

    Long term deals ranging from five to 10 years have been signed. At the same time, the independents have nothing significant. Earlier people were not selling content only for India. They would sell it only at an Asia Pacific level. The first thing we did in 2007 was to convince studios to carve out India as a separate territory. We have proven to them that India has potential.

    The studios are happy with Movies Now. Each month we introduce 30-40 new titles. It is not that we rehash the FPC.

    Could you talk about the library that Movies Now has?

    We have close to 500 films in our library now. We are concentrating on movies like Titanic and Apocalypto that people want to watch over and over. Our strategy is different. Speed was the highest rated movie in the last six months.

    Also in a year, there are only a handful of blockbusters that come in. The viewer wants a good movie, regardless of when it was made.

    So you are not doing what Pix did, which is start with library content and move on to more premieres?

    Pix started with what I call classic, niche movies. We play popular blockbuster movies that appeal to an average English movie viewing person. Pix took nearly two years to realise that they needed to play films like Charlies Angels to get viewership into place.

    We are a very premium, High Definition brand. The perception among viewers is that our audio video clarity and choice of movies is better compared to competition. These two things came across in some dipstick research done.

    But since most homes do not have an HDTV set, aren’t you at a disadvantage?

    If you play an HD file on a laptop, it looks much better compared to a standard definition file. The quality of playout at transmission is five times better even on an average LCD or plasma that is not HD. The picture and audio is better. Six cable operators offer HD like GTPL in Gujarat. The uptake of HD will grow. Even on a regular non HD TV set, HD playout and transmission delivers better picture quality than standard layout and transmission.

    In terms of distribution, did you focus on digital homes?

    We have chosen to get our act right on cable first. This meant a significant investment in carriage fees. Only later did we look at DTH. After all, 88 per cent of viewership still comes from analogue cable. Four per cent comes from digital cable and eight per cent comes from DTH.
    We are available on all DTH platforms, except for Tata Sky. We are at an 18 per cent reach of the TG, which is the same as Star Movies. 19 million viewers watch us in a week.

    How is the programming structured?

    Content is just one piece. We follow a holistic strategy across. People who have seen True Lies many times may want to see it again, compared to The Hurt locker, which many people may not want to see even once. True Lies got a TVR of 0.47. The Hurt Locker on its first airing got a TVR of 0.04. Due to our audio and video quality, people would rather watch a film here than any another channel.
     

    What about programming blocks?

    In terms of programming blocks, we have kept things simple. People like to watch movies on the weekend. There is a distinct dispersion towards weekend viewership versus weekday viewership. Moviethon airs from 11 am-11pm where we play the best of movies back to back. We call it ‘From Sunlight To Midnight’.

    On Saturdays, we have a comedy block in the afternoon, where two movies air back to back.

    There is Love boat at 9 pm on Monday and Grand Nights on Saturdays at 9 pm. We are also actively considering creating an afternoon slot for women.

    Each month we do festivals. We did a complete Rocky festival from January- March. This month, we are doing a festival around Shaolin and Kung Fu movies, which have been digitally mastered in HD and 1080i.

    How do you see HDTV technology spreading?

    There are already five million HD or HD ready TV sets in the country, that are not captured by research. They have come in from outside. If you walk into a shop today, all you see is a display of HD TV sets.

    When people buy a new TV, they go in for HD as the price point has come down dramatically. You can own an HDTV set for Rs. 12,000 – sometimes even for Rs 9000! The adoption of HD is there.

    If you look at the advertising of a Samsung or a Sony over the last three years, you will not find an ad for standard definition. In a TV shop, you see LEDs.

    If appointment viewing has gone, how do you build brand loyalty?

    There is brand loyalty to a channel, but no loyalty towards a time slot. People are not saying that they will watch a film at 9 pm. We are top of the mind recall.

    What are you doing for the summer?

    From 1-28 April, we will have a sci-fi festival on Friday and Saturday at 11 pm. From 18-26 April, there is another festival called Hollywood heroes at the moment. The best films of the likes of Anjelina Jolie, Sandra Bullock and Will Smith will be showcased from Monday to Thursday at 11 pm.

    There are many players creating a unique look and feel. How did you approach this challenging task?

    We were very clear on the brand identity. Our brand needed to be premium. So the packaging had to be at par with Star movies and HBO. We selected London-based DixonBaxi, which has worked for USA Network and MTV; they have done packaging for the Universal Channels worldwide. We also chose the best voiceovers in the world for our ads. Each element that informs the viewer of who we are, was done carefully. We don’t concentrate on a USP. We focus on providing a holistic 360 degree experience to the viewer.

    What kind of promotional activities does Movies Now do?

    We are fortunate because of our parental linkage; we get a lot of coverage in The Times of India. This is the best vehicle to promote any English channel.

    We also do outdoor. We advertised on Ten Cricket. We did an alliance with Gold’s Gym for Rocky. We have just done another alliance with the BJN Group. Two months back, people did not want to do marketing alliances with us. Now, increasingly they are willing. We tied with many retail outlets such as Croma: you only see Movies Now playing there. This is complimentary to the sale of HDTV sets.

    We have done an alliance with Big Cinemas for the DVD release of Harry Potter. There is a contest and two winners get to go to the sets of the film in the UK and Hollywood. Later in the year, we could do tie ups for theatrical releases. The film has to appeal to a mass audience, for us to benefit. There is a film called Sucker Punch being released, but we are not sure if it will appeal to the masses.

    Digital forms an important part of marketing for the English movie genre. What activities do you do?

    We are fairly active on Facebook and have a site. But if you look at Internet penetration, it is still low. So traditional mediums outscore digital. I am not discounting the importance of digital, but it has a long way to go. On websites, we do activities to provide the right experience for the viewer and the trade.
    Isn’t digital more cost effective for you?

    We have found it more expensive. It has not given us the kind of reach and conversions to viewership, the way traditional media has. Digital media is still hype; it has not built up to the extent that it should have. It is traditional media that is giving you 90 per cent of results.

    On the ad front, are you encouraged?

    Clients want an upscale urban audience. Our TG is C&S 15-34 SEC A,B metros as it is the aggregate TG of all our clients. We have 40 advertisers. Our source of revenue is advertising, as we pay hefty carriage fees.

    English movie channels have touched Rs 3.25 billion. The English entertainment channels including the GECs contribute Rs 1 billion. So there is Rs 4.25 billion at stake.

    We expect a 20-25 per cent growth for English movies this year. If competition had not come in, we would have seen 10-12 per cent growth this year.

    Lack of competition led to stagnation in terms of ad revenue for the English movie genre. Now with us coming in, Star Movies, HBO, Pix are all doing more things. There is healthy competition, which will lead to healthy ad revenues.

    How do your rates compare?

    They are not comparable. Competition gets Rs 3500-5000 per 10 second spot. We want to reach Rs 3000 per spot by increasing the effective rates by 100 per cent over the next three months.

    280 advertisers were on English Movie channels in 2009. In 2010, the number grew to 340.

    New telecom companies, automobiles, electronics and white goods advertise more. FMCG continues to be the largest ad spender on this genre, followed by telecom and mobile. Then come consumer electronics.

    Is the cricket season impacting viewership of English movies?

    Yes! Depending on the performance of the India matches, it drops. In one week, there was a dip of 27 per cent. In another week, when the match was not on a Sunday, the dip was 15 per cent. It also depends on how well India is doing.
     

    Does counter programming work?

    We are not doing this. What we have done is build our content before and after cricket in a certain manner, and during the game in a certain manner. A match gets over by 10:30 pm. So our best films air at 11 pm.

    We place non-male viewership films during a cricket match. So people who want alternative content to cricket, can watch us. There are limitations within which we operate. Let us see what happens.

    Are you also looking at film-based shows?

    No! We are just playing movies back to back. In our analysis, whenever there is a film-based show on an English movie channel, the viewership drops – sometimes by as much as 70 per cent! We do not want any drop in viewership for the sake of differentiation. But we are considering doing a show in such a manner, that it would add viewership.

    How much inventory has been sold?

    We are running at 70 per cent inventory utilisation. The push has to come from an increased rate. For the past Saturday, we were sold out, but it was a peculiar case. The Indian cricket team normally plays on Sunday and so people want to use us more on Fridays and Saturdays. We dropped 120 spots.

    Inventory utilisation is at around 95 per cent across English movie channels. But the rates are not right. So you might have to grow the amount of inventory available.

  • ‘Max is an extremely successful channel’ : Max Sr EVP and business head Sneha Rajani

    ‘Max is an extremely successful channel’ : Max Sr EVP and business head Sneha Rajani

    Multi Screen Media‘s hybrid channel Max has completed 11 years and today is a prime asset of the company.

     

    While it telecasts the lucrative Indian Premier League (IPL), in the movie space it is in close fight with Zee Cinema for the top spot.

     

    In an interview with Indiantelevision.com’s Gaurav Laghate, Max Sr EVP and business head Sneha Rajani talks about how Max has successfully run its movie and cricket businesses separately and profitably.

     

     

    Excerpts:

    Max has been both, praised and criticised, for changes in cricket programming. Your comments…
    What we did with cricket was pioneering. We changed the way cricket was viewed and consumed in this country. Till then it was like a match being aired and a little bit of analysis thrown. What we wanted to do, and which is where we revolutionised cricket viewing, was that we wanted to increase the base.

    Cricket was predominantly male viewing till we came into the market. We knew that in order to increase the base, it couldn‘t be just confined to the men. We had to make it all inclusive.

    So we took some seriously bold steps like introducing a woman anchor way back in 2002 (Ruby Bhatia) and Extraa Innings.

     

    In the 2003 World Cup, we had three women instead of one – and purists went ballistic. The ratings increased five times, women audience grew 200 per cent and Extraa Innings touched a 19 TVR.

    Another milestone was duplicating the success of Extraa Innings with movies – Extra Shots. Mandira Bedi became the first movie jockey.

     

    From 2008 we are having IPL. There has been no dull moment since then – we are made for each other.

    What about movies?
    Blockbuster movie acquisition is something Max has been associated with always. Out of the 10-12 big films every year, Max has easily over half of them. Be it Lagaan, Devdaas, Om Shanti Om or 3 Idiots – you will always see the best and biggest movies on Max.

    3 Idiots is, perhaps, the biggest coup that Sony has pulled off. Look at the ratings of the first three airings.

    With so much controversies and bad publicity going around IPL, will it have any adverse impact on your revenue targets?
    I won‘t comment on numbers but any publicity is good publicity…it helps you look positively. And at the end of the day, the IPL is a league that the audience wants to watch. The thought and vision is so strong that the IPL will continue to be the biggest entertainment spectacle.

    Max being a hybrid channel, the cost of investment is much higher compared to a pure play movie channel…
    Yes, but we look at the two as completely separate businesses. And both are doing fairly well independently.

    And yes, as for cricket, the rights have been acquired for 10 years. We are well aware of the costs. But as far as movie acquisition is concerned, we know the prices have gone up tremendously, which is why we have been extremely careful about how many movies we have picked up this year and at what price.

    But you have acquired very few movies this year?
    Let me put it this way… We have not acquired as many films as we normally do simply because we did not want to pay unrealistically high. Acquisition has to make business sense.
    ‘We have not acquired as many films as we normally do, simply because we did not want to pay unrealistically high. Acquisition has to make business sense‘

    As Colors is buying movies aggressively for its upcoming movie channel, what will be your plan of action?
    Not just Colors, Star has also picked up a lot of them. Colors is in a different life cycle; they are in a launch phase. We are nowhere in the launch phase, we have a very solid library. We have acquired enough number of premieres.

    So what are the parameters that you look for while acquiring the movies?
    We have a budget and a set of parameters. Our recent acquisitions are Robot, Crook, Raktacharitra, We Are Family and Hisss.

    When you are airing movies, you do not have scope for creative programming. How is your channel different from the other movie channels?
    The scope is very limited simply because we run movies back to back; there is very little space available for us to do anything else. But in the next quarter, we are trying to bring in at least a couple of innovations.

    So far we have Extraa Shots – which has a different look to it every month. We shoot with TV stars; we have picture-in-picture type shots etc. It has been refreshed continuously over time.

    But how will you differentiate between your channel, and say, Zee Cinema and Star Gold if everyone is playing the same movies?
    You are talking about the syndication model. But there are very few movies that have been shared between the broadcasters like Jab We Met airing on 10 different channels.

    I can say 99 per cent of our library is exclusive, and so is Zee‘s and Star‘s. There are very few – around 50 films that are shared in the market.

    So you don‘t believe in the syndication model?
    We as broadcasters are extremely and completely against the syndication model. If you talk to other broadcasters, I think they will also share the same views.

    I think it is not right for the broadcasters and for the movie itself. I think producers also should not encourage this as it completely devalues the product.

    But many channels have formed business models on syndication. Like Colors acquired first airing, Imagine TV got second airings…
    The response to that is the pricing is wrong. It does not mean that you change the model and introduce a model that completely kills your product and the brand of the channel.

    We had to acquire some movies on syndication as they were not available otherwise. But going forward, we have not acquired any film that is on syndication. It is outright acquisition model that we are following.

    Which movies you had to take on syndication?
    Om Shanti Om, Chandni Chowk to China, Bhootnath, Jab We Met and a few others. But after that, we haven‘t. Like 3 Idiots – which we acquired exclusively.
    The window between theatrical release and TV premiere has shortened. But a movie channel gets the movie after it airs on the general entertainment channel. Is there a return on investment?
    If not, why will Colors launch a movie channel? And let me tell you, I can‘t talk about the other movie channels, but Max is a very successful channel. Not just from the ratings point of few, but as a business it is extremely successful.

    And as you rightly said, the big premiere happens on a general entertainment channel simply because the effective rates on a GEC are far higher than a movie channel. But there is a model there which works, and that‘s why everyone is doing it.

    In other words, we recover what we invest.

    But Zee Cinema is not investing heavily on acquisitions and rates higher than Max. So is it not a more effective business channel?
    They do buy, maybe not as much as Star or Sony or Colors, but it is because their business model is different.
     

    And talking about Sony, even before we launched Max, our brand promise was that we are known for our blockbusters. Our strategies

    are different. I wouldn‘t say theirs is more effective or ours is.

    And if you see the last five years, Max has been leading more than them. Obviously our strategy is also working.

    Also don‘t forget that Zee Cinema has got a first mover advantage. It‘s a far older channel. People are used to it and in the Hindi heartland they have a huge following.
  • ‘India is among the top three markets for us in Asia’ : HBO South Asia country head Shruti Bajpai

    ‘India is among the top three markets for us in Asia’ : HBO South Asia country head Shruti Bajpai

    For 10 years, HBO has warmed up audiences with big movie titles, library content and branding as a premium English movie channel.

     

    The arrival of more players has not shaken up HBO‘s positioning. The channel has grown amid audience fragmentation and India surfaces today as the top three markets in Asia.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, HBO South Asia country head Shruti Bajpai talks about the the channel‘s decade-old existence in India and the plans ahead.

     

    Excerpts:

     
    We are at a time when a lot of English channels are looking to come in. What is the reason for all this rush?
    There has been an influx of channels for some time now but it is not as though it is happening all of a sudden. Nevertheless, what is happening now is that with HD and DTH spreading their reach, a lot of specialised channels are looking at India. There is more interest as licences have been got and we are now hearing about more launches. Since Indian television has expanded, there has been a steady increase and there is more of an influx of English entertainment channels.

     
     
    For long-existing players like HBO what challenges does this present?
    The challenge is to retain existing viewership and get new viewers. And it is not just competition from the English entertainment channels, but also from theatrical releases and other forms of out-of-home entertainment. We have to be on our toes in terms of constantly refreshing content, delivering our promise of blockbusters and giving the extra value of entertainment that viewers don‘t get to watch anywhere in the form of HBO Originals.

     

    We will continue to do this as more and more channels come in. We have been successful as a brand and as a channel by increasing our offerings year on year.

     
     
    In the English film space, new entrants have caused fragmentation. Players including HBO have lost some share. What is HBO‘s overall game plan to counter this?
    I will answer this on two levels. All genres have fragmented with new players coming in and the English movie genre is no exception. Content has to be compelling for people to continue watching. On the other hand, maybe the way English entertainment viewership is tracked needs to change. Our measurement is still traditional. As more people enhance their TV watching experience through digitisation, channels get watched more. We need to look at the reporting of English entertainment space.

     

    I don‘t believe that the picture presented through traditional measurement is completely true. Why is there so much interest by companies to launch English entertainment channels if people were watching less of it? I am not sure if we feel that the measurement of digital homes has no scope for improvement. It has to capture the actual increase in the television viewing universe. Perhaps the measurement base has to be expanded. The measurement system has to keep pace with the pace of digitisation.

     
     
    How is HBO celebrating 10 years of operating in this space?
    From September on, we have 10 best films of the year. Our spots will celebrate the landmark.

     

    We are also refreshing our look and feel. This is being done in-house out of Singapore and comes into effect next month. The graphics, colours and fonts are being improved upon to give the channel a livelier and friendlier look.

     
     
    In terms of business generated and viewership, where does India stand versus other Asian markets like Singapore and Hong Kong?
    It is a priority market. India is in the top three. It has the potential to surprise you with viewership increases.

     
     
    ‘I can‘t give a timeframe as to when we will launch more channels. As I have said before, it has to make business sense. The timing has to be right and the market has to be large enough‘

     
     
    Has there been any difference in focus this year compared to the previous years?
    There has been more focus on HBO Originals. Our line-up has been better than in previous years in terms of the slate of movies like The Dark Knight, Star Trek, Terminator Salvation, Angels and Demons. Hollywood Premier League continues to grow for us. The aim is to balance the quality and quantity of content and to better ourselves at our own game.
     

    Has any research been done to find out how HBO is perceived?
    It is our mix of raters and differentiators that has led to a high perception among viewers. When you do a poll and research, viewers say that they like us for the kind of films we show. Even now we get talked about for movies like An Inconvenient Truth, Blood Diamond, A Mighty Heart, The Kite Runner. A lot of movies that will come to HBO like Invictus are doing well critically and theatrically.

     

    There is a high quality perception that viewers have of HBO. This helps us maintain our brand image. We are not known by the last title we show. What makes a viewer remember a channel more than the last title is the entire package and this is where we score.
     

     
    Has loyalty come into this genre or is it just a question of who has the better titles at primetime?
    It is a mix. You have the top two channels – HBO and Star Movies. Then there is a distinct number three. This has been happening for 10 years. There is a diverse selection on HBO ranging from romantic films to sci-fi. You cannot just have raters and one kind of film. Otherwise a dubbed English movie channel would be on top.

     

    We keep our ears to the ground and make the schedule as sharp as possible. It has evolved over a continuous basis. The number of movies shown is highest on HBO. You need to see how you hold the audience‘s interest. Make sure it is known as a brand not just for raters but also for things like True Blood. If somebody wants sci-fi, they can watch films in that genre. If they want blockbusters, it is there. The variety we offer is something nobody else has and this has led to the loyalty. It is not just about stitching films together and launching a channel.
     

     
    What are the steps that HBO has taken to grow the audience base over the years?
    Our primetime is not what has been traditionally defined. It is when people are watching it the most. Then you can grow it. Are there specific opportunities for genres like action and romance? When are women watching it the most? When do men come in? What about teens? It is the on-going job of the person in charge of programming and scheduling to look at ways and means to use this data to expand viewership.

     

    We were the first to come out with a block for women – HBO Time Out – years ago. We did a ‘HBO See It First on Sunday‘ block and now Star Movies has come out with something similar. We created a slot for kids, teens with Whazzup years back. If you remember, other channels did things like Action Mondays, Romantic Tuesdays. It was genre based and not viewer based. We were the ones who came out with a viewer based, profile targetted strategy.
     

     
    Has the way in which viewers consume HBO changed over the past three years?
    Three years back I would not have expected our series, True Blood, to have done so well. It is not all about creepy crawlies and a sinking ship. Thinking man‘s films are doing better now. I would give the example of Revolutionary Road which got positive feedback. Over the years due to more exposure, people have grown to appreciate films like this. But the basics do not change. Action continues to do well.

     
     
    Are you looking at dubbing?
    We do this as a one off. I don‘t think that it works to do it often as it can put viewers off. The channels that show dubbed movies are targetting viewers who do not understand English well. This is expanding the market for English films. For us, though, subtitles are enough. It helps with those films where accents are tough to understand.

     

     When do HBO‘s licensing deals with studios come up for renewal?
    These are multi-year deals. I cannot talk about the time frame.

     
     
    Pix has now gone into the blockbuster space as library content does not work that well. How do you see this impacting the other players?
    Every movie channel has some blockbusters. I don‘t understand the big deal. There is no comparison to the number of blockbusters HBO and Star Movies brings versus what the other channels can bring. The key is to compare how blockbusters rate among the channels.

     
    What role does library content play in getting viewers?
    You need to have good amount of blockbusters that rate. But library also delivers ratings. It is this mix that makes or breaks a channel. We make sure that library titles are something that Indians want to watch. We do not have a library for the sake of it. We do programming around franchises like Lord Of The Rings. We are running a Star Trek franchise. It has to be relevant. 
     

    How will HBO be celebrating the festive season? Which are the big properties coming up?
    Our festive season kicks in early due to our 10th anniversary which we celebrate next month. We have the 10 Best Movies Of The Year initiative. On the television series front, we will air True Blood followed by Number One Ladies Detective‘s Agency followed by Hung over the next couple of months. We will have films like Public Enemies, Gran Torino, Julie and Julia. We will have a big Diwali Festival. We will have the Diwali Blockbuster of the month and Blockbuster Of The Year coming up in November. There will also be India specific programming. We are looking at two shows in this regard.

     
    What unique initiatives have been lined up on the marketing front in a crowded marketplace?
    We don‘t spend a lot, but we spend smart. We will be doing a campaign next month to push films and the fact that we are celebrating 10 years. We will use social networks to talk about 10 years and the message will be Celebrating 10 Years.

    The digital platform is definitely important for us. The teenagers going into their 20s are absorbing media. Where are their touch points? We focus on social communities because we have to be there where the potential viewers are. Sometimes we do not have to spend a lot but focus on building communities where goodwill for our channel can be garnered. This cannot be one off for a title. The online conversation has to be about the HBO brand.
     

     
    With the new players coming into the English entertainment space as a whole, do you see the ad pie correspondingly growing?
    It will not de-grow. There is a high level of involvement that happens with the English movie genre compared to other genres like English news. So there are advertisers who will always want to reach out to this segment. You have FMCGs that have a luxury range. You have holiday destinations, insurance companies. Cola companies will come out with more offerings. They want to reach the viewer as you cannot take Hollywood out of the life of an Indian. I see a healthy ad revenue growth this year.

     
    How is the mood in the ad market this year compared to last year?
    It is more upbeat. We are back on track in terms of the interest levels among advertisers. Our primetime inventory is almost completely utilised for the year. It is about the brand image that we have cultivated over the years that has stood us in good stead. We make sure that there is not much clutter on-air.

     
    Could you give me examples of packages that HBO offers clients that go beyond the 30-second spot?
    We have been pioneers when it comes to brand integration. We once did a ‘Maruti Suzuki Live The Moment‘ initiative. The movies were about living the moment. For an initiative with HDFC Children‘s Plan, we showcased films like Pursuit Of Happyness. For the two wheeler Scooty, we did a Babelicious initiative. We also do things like HBO Scorecard that builds engagement. All this has solidified our relationship with advertisers.

     
    Do you feel that the English movie genre should compete better against other genres like English news for ad revenue?
    The involvement is different. We would be higher in the pecking order in terms of the kinds of ads shown. We have a disciplined niche quality when it comes to advertising and the viewer experience. The engagement that a viewer has with news would be much less compared to movies. The engagement is deeper with English movies. An English movie viewer might check out the news first when he gets home at around 8 pm or so. Then he will watch a movie at around 9 pm. To compare the two genres though is not fair.

     
    How is the deal with Zee Turner working out in terms of reaching the smaller towns and cities more effectively?
    The relationship with Zee Turner been working well. There is an opportunity to grow more in the smaller cities and towns. At the same time, our marketing budget is limited. There is only so much we can do. We have to focus, prioritise and take a call. But it makes sense to expand the market. It is part of our long term plan.

     
    Do you see 3G having a big impact on this genre?
    This is not something immediate, but it will definitely happen. We have to take a cautious approach initially to this. It will be slow and steady for us. 3G will happen at its own pace and time.

     
    HBO also has a women-centric channel abroad. When will this come in?
    I cannot give a timeframe as to when we will launch more channels. As I have said before, it has to make business sense. The timing has to be right and the market has to be large enough. The distribution scenario is changing as we speak. Cas is not spreading as had been expected earlier but digitisation is. 

  • ‘Our goal is to increase our audience share to 25 per cent’ : Pix business head Sunder Aaron

    ‘Our goal is to increase our audience share to 25 per cent’ : Pix business head Sunder Aaron

    When Pix launched four years back, it had to be content with library movies. Now the English movie channel has evolved into a stage where it can air current titles to draw in younger audiences and nurture ambitions of competing successfully with Star Movies and HBO.

    A focus area for Pix will be to aggressively get into the action genre.

     

    An important mix on the channel is also non-film content including football.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Pix business head Sunder Aaron talks about the channel‘s progress over four years.

     

    Excerpts:
     

     
    What factors prompted Pix to change its positioning to a blockbuster channel?

    Our positioning as a premium Hollywood movie channel has not changed. We are still about telling good stories. It is just that our programming strategy has evolved. Our game plan in 2006 was to transform Pix into a current film channel. We are following the path that we had laid out for ourselves when we launched the channel.

     
    What was the plan in 2006?

    When we launched the channel, we mainly had library movies from Sony and MGM. We also had all time favourites like Jerry Maguire. We still have those but they do not dominate our primetime as much as they used to. We knew that four years down the line we would add current movies and be as current as HBO and Star Movies.

     
    So new films have to be part of the recipe for a successful English movie channel?

    We have learnt that brand new current films are the prized assets in this genre. At the end of the day, that drives spikes in viewership. As long as there are enough spikes, the overall welfare of the channel and its profile will rise. You will see the movie channels that have current films – HBO and Star Movies – excel.

     

    You can have other kinds of films but it is these big, current films that will drive the channel. Within these current films, it is the action genre that is the most valuable and the most attractive. This is what our focus will rest on.
     

     
    Any other lessons that you learnt from the last four years of Pix‘s operations?

    Yes, subtitling. To widen the reach, this is an important tool. We avoided it for a while but our viewers asked us for it. This led to an increase in reach. Shadows of Time, for instance, did well in the six metros. It is a Bengali film with subtitles. Subtitles make it easier for viewers to understand the film.

     
    Is it fair to say that older movies do not have much traction due to the niche nature of this genre?

    You have raised two points. The English film genre is not niche anymore. If you look at it from a cable operator‘s point of view, they must have English movie channels. It is as essential as a sports channel.

     

    One reason why older films do not as work as well is that the audience likes films that are current and sexy. The newer films appeal to the younger generation. Library films have less action and special effects. The style of cutting and editing is different from the way it is now.
     

     
    ‘We will have more current films. Our audience will also be more youthful and we will have a wider reach across the country‘

     
     There are already two channels that showcase blockbusters and aim at becoming bigger and better. How will Pix differentiate itself?

    We operate from India. Star Movies is operated out of Hong Kong, while HBO is based out of Singapore. The fact that we operate out of Mumbai allows us to be more hands on.

     

    We actually do local programming like Chicks on Flicks. We also have sports properties like the FA Cup. Thanks to the World Cup, the soccer fans have grown.

     
     
    What goals have been set for the year?

    Our ultimate goal is to increase our share to 25 per cent and be on the same level as Star Movies and HBO. Right now our share is around 20 per cent. We want more youth tuning in. The current films are aimed at broad basing our reach.
     

     Pix went for a design and look makeover. What was the aim of this?

    We want to draw in younger audiences. It is not that older audiences are not useful but the fact is that the youth are the demographic that advertisers target.

     

    The channel looks slicker and is more attractive visually. Earlier the look we had was too static and flat, colour-wise. Now there is more dynamism.

     
    Is Pix going to create time slots that appeal to different TGs?

    We already have slots like Super Movie of the Month and programming tailored for the afternoon. Our share and time spent has grown though the category as a whole has fallen.

     
    Does the English film genre face fresh challenges this year?

    Scarcity of product is a natural issue. The increase in prices and fragmentation are other issues. We are clever about how we deal with suppliers and where we find our movies. We track viewer feedback regularly. If somebody sends us an email, we read it and even respond sometimes.

     

    Attention spans are changing. People are flipping channels a lot more. Luckily at Pix the time spent has been increasing. This shows that our films and promotions are better.

     
    How much library content is on the channel and what are the big properties coming up?

    Our ratio is the same as our competition. We are airing The Hurt Locker which is a big one. So for two years in a row, we will be airing the Oscar winner for best picture. The other movies include Hot Tub Time Machine, District 9 (science fiction) and New York I love You.

     

    The aim is to have at least one blockbuster each month. Then we have films that are not big blockbusters but are also premiers. If it is really good, it goes into the handpicked movie slot.
     

     
    Have you changed how the weekend is programmed?

    No! We still promote the 9 pm movie. We had the properties Cheap Thrills and Damn Good Drama, but we got rid of those.

     

    How tough will it be to get current films given the fact that major studios already have output deals?

    It is a challenge. We have to be resourceful in terms of finding films that make the channel look good and elevate our level of programming. 

     
    Do Sony‘s films come to Pix first now?

    No! Their films go to HBO first. That output deal is still on.

    Is local content like shows going to be more important going forward?

    It is a distinguishing factor. We have Chicks on Flicks. And we are looking at a couple of other concepts. Gateway (the show done with Ashok Amritraj) will return eventually. It is a complex series that takes planning and it will come back with a new judge. The celebrities on the show have to commit to four to six weeks of shooting.
    We are looking at Hollywood-based film shows. They are useful as interstitial programming.

     
     
    Are you looking at expanding your base into smaller towns?

    It is costly to do marketing there. The focus has to be on the primary target market – which is metros. Beyond that, we do tie ups to reduce costs in secondary and tertiary towns.
    This Is It was an interesting experiment. Since it is a musical and it transcends language barriers and has Michael Jackson, we did promotions in regional languages.

     
    What marketing activities will Pix do this year?

    We will do a brand campaign when we air The Hurt Locker. This will reinforce the new content on our channel. The Hurt Locker is the kind of film that will pull in a wider, more mass audience.

     
    Are out of home activities important?

    Yes! It is important for a channel that is local to behave in a local manner. The Pix Movie club was launched a couple of months back and the response has been strong in places like Mumbai. PVR is our partner and they are also happy with the outcome. You need events to connect with viewers directly on a regular basis.
    We had Hollywood Pix Your Brain last year. This was a trivia quiz. It will return. With This Is It, we did activities in malls like flash mobs. We also did a four-city legendary Michael Jackson tribute. Music groups paid tribute to the late pop star.

     
    What role does digital play?

    It is important given that this is where the youth spend a lot of time. On our site, you can get mobile reminders. We do online promotions. Certain films lend themselves to online promotions like This Is It and Slumdog Millionaire. The budgets are not big and so online is a better way to go about as it is a targeted promotional activity.

     

    Is Pix planning to launch more channels?

    Eventually, we will. We will start with digital platforms, but you will not see another Pix channel for a year. There are channels that launched but fell by the wayside. We do not want that to happen.
     

    Where do you see Pix a year from now?

    We will have more new, current films. Our audience will also be more youthful and we will have a wider reach across the country. The aim is to also have better viewership in secondary and tertiary towns.
  • ‘Our biggest challenge is raising the low yields in the Hindi movie channel genre’ : Star Gold GM Sameer Rao

    ‘Our biggest challenge is raising the low yields in the Hindi movie channel genre’ : Star Gold GM Sameer Rao

    Star Gold general manager Sameer Rao is known to be a numbers man. A chartered account and an MBA in finance, Rao has a 19-year career graph that spans stints in UBS and Arthur Andersen.

     

    His baptism in media took place at Star in cable TV distribution, followed by the internet, the commercial department and then finally to his current posting. He was given additional charge of Star Utsav in end 2009.

     

    Indiantelevision.com’s Ashish Mitra spoke to Rao about the changes he has brought at Star Gold and the prospects for the channels he heads.

     

    Excerpts:
     

    How large is the Hindi movie channel space? What is the lay of the land?

    Our estimates are that all the movie channels put together make it a Rs 5,200 million ad revenue market. No doubt, Zee Cinema is the leader followed by MAX, and we are at the No 3 slot. For about six to eight weeks every year, because of the IPL and cricket, MAX steals ahead and then it goes back to the previous ranking.

     

    Raising the low yields in this channel genre is the biggest challenge. The inventory is keeping on growing with new channels launching: UTV Movies, for instance, entered the fray with two channels. GRPs of movie channels used to be much higher a year ago than is the casenow. There are times the ratings race becomes a big issue with us when competing with the likes of GECs such as Sony, Sab and Imagine as they are in the same GRP range as us. But the realisations by these channels for commercial time are higher.

    Can you gives us your analysis of the Hindi movie channel genre?

    The movies genre, if you aggregate consumption across movies channels, movies on Hindi GECs and movies on cable channels, is as big as the Hindi GEC slice. However, perception wise, it is regarded as much smaller, possibly because it is acquired content as opposed to original programming.

     

    On the supply side, satellite buyers have emerged as key players in the Hindi film industry and are critical to the viability of any Hindi film project. With some changes both on the buying and selling side, it is possible that movie channels will be able to offer much more value to all stakeholders – film producers, advertisers, viewers – while remaining a healthy and profitable business for the broadcast networks.

    You were looking after commercial for Star Plus when you were called to take charge of Star Gold and Star Utsav. What was your analysis of the two channels and your health report for them?

    I was responsible for programming commercial for the Hindi language channels at Star between March 2007 and November 2009. I took over as Star Gold general manager in March 2008 and Star Utsav general manager in late 2009. Star Gold is a healthy and growing business and Star Utsav is stable but a lot more could potentially be achieved.

    What changes did you initiate at Star Gold to fast pace its growth amongst its competing players ?

    My fundamental approach towards programming on Star Gold was to build slots that delivered on a defined content promise to a movie consumer. The slots were developed based on research inputs on content themes that audiences wanted to see on a movie channel.

     

    Thus, we built permanent action, comedy and kids slots apart from the Hollywood dubbed slot, which we had launched several years ago.

     

    Apart from this, we also incorporated slots for thematic movie festivals through the year, which would run from one to six weeks. For example, one of these, Sabsey Favourite Kaun, culminates in a big scale televised award show, India’s only audience polling driven movie awards.

     

    Hence, once we had the slots ready, we acquired movies designed to develop and grow the slots. All these initiatives helped us narrow the gap between us and the genre leaders.

    Star Gold was not being marketed aggressively. How have you changed this in terms of above the line and below the line activity?

    Marketing for the channel is in line with the programming strategy of building up slots and festivals. A lot of it happens outside Mumbai as our biggest consuming markets are Uttar Pradesh, Gujarat, Delhi and Maharashtra.
    ‘We are just four GRPs behind Zee Cinema and 16 behind MAX. If we do the right things we can overtake the leader.‘

    Your list of acquisitions and syndications.

    Last year, we acquired films aggressively. We got the Salman Khan-starrer Wanted, the Amitabh Bachchan-starrers Aladin and Paa, the Akshay Kumar-starrers De Dana Dan and Housefull and the Ajay Devgn-starrer Atithi Tum Kab Jaoge. Besides Wanted, all other acquisitions were on an exclusive basis. Some runs of Wanted have been reserved for Sahara because they co-produced the film. We also have the non-exclusive rights of the latest RGV film Rann along with Life Partner and Luck.

     

    As far as syndication goes, we continue to syndicate with Zoom and UTV Movies. But this exercise entirely depends on the type of films the other channel wants to have.

    What are your plans for Star Gold?

    We’d like to lead the genre by the end of this calendar year. The network is building the catalogue through a mix of judicious new and library acquisitions and we continue to refine our slot-based programming and marketing strategy. I believe we need to acquire close to 20-25 more movies over a period of time. We are just four GRPs behind Zee Cinema and 16 behind MAX. If we do the right things we can overtake the leader. Our challenge is to have the right mix of old films, new films and blockbusters. We can’t buy the most expensive ones only; otherwise the low yields could erode our margins.

    Which are the major category advertisers for the channel?

    FMCG continues to be the biggest category. We are an important platform for male brands because of our deliveries in that demographic. We get the bulk of our advertising resources from the package of festivals. Going forward, several new acquisitions that we have gone into will boost the advertising pattern of our channel.

    Please highlight the milestones of Star Gold over the decade.

    Starting off in 2000 as a classic movie channel, we showed black and white films. We then switched on to telecasting coloured films from the post 70s. Rapidly, we turned into a channel with a modern look in terms of popular and critically-acclaimed cinema.

    Then in 2002, we launched the popular Sabsey Favourite Kaun (SFK) that first started as an award show. Then in December 2006, SFK went international. The show’s popularity can be measured well as last year, we received a whopping 17 million votes through SMS and internet in addition to the physical votes we received from people to select their favourite stars. This exercise lasted for over a period of two months.

     

    As for showing Hollywood dubbed content, we have excelled in showing the latest Hollywood films and rank above all other channels.

     

    Going forward, we hope to see Star Gold as a channel that boasts of new Hindi films.

    What has been the change in the channel perception over the years?

    The first major change in our channel was when we changed from a classic movie channel to a channel that specifies in several genres as far as films are concerned. Based on this, currently, we have a higher proportion of viewers. Our channel is driven around comedy films and of course Hollywood films. We want to build on the perception.

    You took charge of Star Utsav in 2009. What was your assement of the channel then and what changes have you brought in?

    Basically, Star Utsav is a channel that caters to repeat content. After I took over, I found that there were more repeats of shows of two distinct genres – mytholology and kids programmes. This was of course in addition to shows from the Star network.

     

    After I joined the channel, rationalising the schedule was my biggest priority.

     

    And now, we are looking at various opportunities keeping the taste and preference of the semi urban and rural markets in mind and devising a new strategy for Star Utsav. This will be implemented in the coming months.

    What were the ratings of Star Utsav when you took over and what are they now?

    The ratings are the same now comapred to when I hadn’t taken charge. It remains stable.

    What about advertisers? Have they been attracted to the channel?

    There is a potential beyond what the channel is currently generating in terms of advertiser participation and we are looking actively to tap such an opportunity.