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Category: Sports
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‘World Series Hockey will change the face of hockey as we know it’ : Wizcraft International director Sabbas Joseph
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Eighteen films in race for animation Oscar award
MUMBAI: Steven Spielberg‘s‘ The Adventures of Tintin, Kung Fu Panda 2, Rio and Rango are among the eighteen animation films that are in the run for a nomination at the 84th Academy Awards.
The list includes films which have already released, like Puss in Boots, Cars 2, and those that are yet to be released like ‘Arthur Christmas and Happy Feet Too.
Of these, there could be as many as five films for best animated feature film at the Oscars 2011 if all the 18 films qualify.
An important clause for all these films to qualify for the coveted award is that at least eight of the movies must be released theatrically in Los Angeles County before the end of the year. Once they complete that run, the films will also be eligible in other categories beyond feature animation.
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‘We will keep aside Rs 10 bn for organic or inorganic growth opportunities’ : Zeel MD and CEO Punit Goenka
Punit Goenka is in control of the media empire that patriarch Subhash Chandra built assiduously over almost two decades. He is quick to take decisions, is unruffled by temporary ups and downs, and believes in continuity.
The elder son of Chandra digs deep into the Zee culture, has his own ways of finding solutions and does not hesitate to bet on sports as he takes up the responsibility of shaping Zee‘s broadcasting business.
“I have learnt a lot from my dad. He is no more hands-on. See, he has not called me for over an hour (during the interview). I have my own style,” says Goenka, a grin on his face.
Soft-spoken and shy, Goenka is a people‘s man. He backs his senior team, even when certain decisions do not work in the short run.
In an environment of raunchy reality TV shows, he believes in clean content and explains that Zee TV, the flagship channel, is designed for family viewing.
Goenka crafts strategies that focus on profitability; he hardly plays to the gallery.
Under his leadership, Zee ended its 12-year-old rivalry with Star to float a joint venture distribution company named Media Pro Enterprise India. The aim of the JV: to pave the path for consolidation and hasten the need for digitisation in the sector.
In an interview with Indiantelevision.com‘s Sibabrata Das, Zee Entertainment Enterprises Ltd managing director and CEO Goenka talks about the lack of opportunity in the marketplace to make the right purchase, the need to bet on sports broadcasting and to stick to profitability in a high-cost environment.
Excerpts:
Zeel is sitting on a cash pile of Rs 14 billion (as of 30 June 2011). Are you looking at acquisition opportunities?
There is nothing that is available today that is fitting our criteria; we see no opportunity in the marketplace for us to make the right purchase. Even in the southern states, we are taking the organic route and patiently building our businesses there.As a company philosophy, we have decided to keep aside a cash of Rs 10 billion at any stage for organic or inorganic growth opportunities.
But isn‘t this the right time for consolidation in the industry?
Every two years we think the time has arrived for the industry to consolidate. But then something happens and there are more launches. Last time, it was the private equity firms; before that, we had the international strategic investors.However, for the benefit of the industry, consolidation is the answer. The sector is sized at Rs 300 billion and there are 500 television channels in the country earning an average ARPU (average revenue per user) of $3. That is why we have become an unprofitable industry.
In a drive to consolidate and digitise the industry, Star India and Zee Group recently ended their 12-year divorce to create a distribution company. Has the joint venture been able to shake up the pay-TV market?
It has been three months since the merged entity got formally rolling (on 1 July). Although we have started billing as a joint entity, there are old individual contracts that have yet to run their full cycle. We have over 5000 contracts with cable TV networks individually. So the impact will be felt when we start inking new contracts. There will be no major revenue upside in the short run. The deal will have a deeper impact after 18 months of implementation.How deep in terms of percentage growth?
Both Star India and Zeel are seeing single-digit growth in subscription revenue from cable TV networks. Our domestic subscription income from cable rose 16 per cent (Rs 3.88 billion) in FY’11, but that included sports. By pooling together the resources of both the partners, we hope to post strong growth and address various anomalies of the analogue market including piracy.A large part of the deal plays out in analogue cable. In case of DTH, both of us are in any case growing independently.
‘Given our growth trajectory and contracts, the sports business should break-even in two years. In the worst case scenario, we should be able to turn it around by the middle of FY‘14‘
How painful has been the integration process?
We have had to let go 20-25 per cent of the combined workforce. Some of them, however, have been absorbed inside the network.Media analysts say Zeel’s share price will get a boost if the sports broadcasting business is hived off and capital raised by offloading equity. Has any investment bank got the mandate to hunt for an investor for the sports business?
We have no capital-raising plans. Zeel will continue to fund the sports business till it turns around. We have taken a long term call and sports broadcasting is a strategic business for us.When do you expect the sports business to turn around?
Given our growth trajectory and contracts, the sports business should break-even in two years. In the worst case scenario, we should be able to turn it around by the middle of FY’14.Zeel‘s sports losses for FY‘11 stood at Rs 2.08 billion on a revenue of Rs 4.4 billion (excluding a one-time revenue gain of Rs 700 million as one-time fee for the pre-mature termination of rights for AIFF). So what will drive this to profitability?
Subscription revenue will drive the business to profitability while advertising will be event-led.Ad revenue is heavily dependent on cricket. And within that segment, it is India cricket. While advertising revenue is cyclical, subscription income is consistent throughout the year.
Zeel has bagged the eight-year Cricket South Africa (CSA) television rights for $180 million. Considering that the earlier five-year rights went for $75 million, isn’t the new price tag on the higher side?
The price is in our comfort zone. It is an inflationary rise and has been one of the most valuable boards for us. By having one of the strategic boards under our belt for a longer term, we are under less pressure.We get to learn from sources that the Zimbabwe board rights have been retained for $20 million (earlier it had gone for $6 million for four years). But Zeel will be able to give its sports business maximum firepower when it is able to retain the telecast rights for the other three boards – Sri Lanka, Pakistan and West Indies. So will you bid aggressively?
We have not yet signed with the Zimbabwe board, so I can’t comment on that. The other three boards are up for renewal during FY’12 and FY’13. We have done our calculations and will not bid recklessly for these rights. There are boards outside these which are also coming up for grabs.When is the golf channel getting launched ?
We are awaiting government approval. We are ready to launch the golf channel within 60 days of obtaining the regulatory clearances.Will Comcast be a partner for the channel?
Earlier Taj Television (which Zeel later acquired) had some sort of an agreement with Comcast for the golf channel. We have decided that we will do it ourselves and completely own it.When are you launching a full-fledged HD channel in sports?
We are launching Ten Sports in HD format later this month. This will be a full-fledged HD channel and will have varied content from the other channels. So we will have four sports channels (Ten Cricket, Ten Action+ and Ten Sports already exist) by this month-end. We have acquired a slew of properties across different sports such as football and tennis. This has enabled us to launch three different channels and post strong subscription growth.Are there other HD launches planned?
Zee TV, Zee Cinema and Zee Studio will be launched in HD format soon.Zeel has posted a measly 0.5 per cent ad growth in the fiscal first-quarter. Do you see the market improving?
On the ad front, we have had a flat first quarter and do not expect to post double-digit growth this fiscal. But we will have a high single-digit growth.Subscription revenues will continue to have a similar growth trajectory, both on analogue cable and DTH. Our international revenues should stay flat.
International subscription income actually de-grew two per cent in FY’11. Do you have any plans to fix the international business?
The problem is with UK and Europe; the wobbly economy there is affecting our subscriber numbers. We have launched a hybrid channel, Zee Café, in the UK to arrest our degrowth in that market. The content, aimed at the South Asian diaspora, includes cricket and regional fiction shows sub-titled in English.In the other markets like the US, We are seeing growth.
Is your localisation strategy working?
Zee Aflam has seen reasonable growth and has reached break-even status within three years of operations. But operating in free-to-air markets (FTA) means the channel can grow only at limited speed.The other experiment we have carried out is in Russia. The audiences there love Bollywood, soaps and dramas. However, it is early days yet.
We are also planning to launch in 3-4 other markets.
Zee TV has slipped to fourth position as Sony Entertainment Television rejuvenated on the back of its big-ticket game show Kaun Banega Crorepati (KBC). Will you change the programming strategy and bring in celebrity-backed reality shows?
There has been a streak of bad launches but it has not convinced us enough to believe that we need to change our content strategy. We are relaunching these slots.A large part of a particular channel‘s growth still comes from one show. A reality show may bring in spikes but we will wait to see what happens after that concludes. We will not take to celebrity-based reality shows unless we feel that we have a concept that needs to engage them. We are happy with our homegrown formats.
Our prime competitor is Star. And as a network, we are in close competition.
‘We will be increasing original hours of content on Zee TV from 28 hours to 33 hours per week. There has been some delay in that because we have had a few bad launches and we want to first fix those slots. We have also had a slowdown in the ad market‘
Will you increase the programming hours of Zee TV as you fight back to regain market share?
We will be increasing our original hours of content from 28 to 33 hours per week. There has been some delay in that because we have had a few bad launches and we want to first fix those slots. We have also had a slowdown in the advertising market.Zee has kept away from purchasing big movie titles. Will that affect Zee Cinema when Viacom18 launches its movie channel?
With movie acquisition costs touching the roof, we have reduced the number of big title purchases. But we have maintained our 30 per cent share in the genre due to the extensive reach the channel enjoys; we have also wisely worked on our library content. We control 2800 movies.Big titles give rating spikes but they are first run on GECs rather than on movie channels. The Hindi movie channel genre has become cluttered and unprofitable due to high acquisition costs. But we have stayed profitable.
Star Gold has reduced ad inventory on the channel by 33 per cent and is showing six fresh movies a day. Will you follow suit?
Such a move has to be compensated with an increase in ad rates. In the current market scenario, this may not be easy. But we are working on reducing the ad time on the channel. And don’t forget that Zee Cinema was the first channel to show five fresh movies a day.Sun TV is under attack from the Jayalalithaa government. With the launch of the state-owned Arasu cable, will you make aggressive investments in the Tamil Nadu market?
With Zee Tamizh, we have a foot in that market. Arasu has got presence in some pockets of the state. It is still early days and we have to wait and see how the market gets impacted. But if we get more distribution, we will get more aggressive.Isn’t Zee under attack from Star in the Bengali and Marathi regional language markets?
The growth of Star has only expanded the market. In the southern region, we have fortified our position in Telugu and Kannada. Going beyond the Marathi and Bengali and the southern belt, there is no distinct language difference and Hindi still rules. Bhojpuri, for instance, has not met with much success yet. The Punjabi market can see growth once TAM (the television ratings agency) starts reporting Punjab as an independent market. Now it is clubbed with Haryana, Chandigarh and Himachal Pradesh; there is no clear weightage in that market.Regional news, on the other hand, is easily doable.
Isn’t the news genre too cluttered?
The industry can support 6-7 national channels. With so much of fragmentation, the way forward is serious news.There should be more stringent norms in this genre as entertainment is also passing as news. We have positioned ourselves as a serious news channel and are seeing decent growth. Unlike other players, we also have a strong pay revenue from our news business.
It is the regional markets that are getting cluttered. The Andhra market, for instance, has seen too many launches. Some national news broadcasters are also having issue over cost structures.
Will you launch an English general news and business news channel or you feel the balance sheet of Zee News Ltd has to further strengthen before you go in for these high-cost launches?
The balance sheet can support these launches. But strategically, we will focus on Hindi and regional news channels. Yes, we have two critical genres left. But we will first fill up the regional space.Are you looking at expanding through the franchise route?
We will take the franchise route only if editorial content is with us. After all, that is what impacts our brand.When you started, you were part of the Agrani satellite project. Do you still nurture the ambition of owning a satellite?
Agrani was a good project but the policies were not supportive. Banks also had no clue how satellite funding works. Owning a satellite doesn’t make sense now; it is more feasible to lease transponder space on a satellite. -
‘We plan to list at the US stock exchange to raise funds for the league’ : EFLI CEO Richard Whelan
There is a rush among sporting bodies to follow the Indian Premier League (IPL) way to build their sport. The latest to follow this route is American football.
The Elite Football League of India (EFLI) is making an entry with its first edition ready to kick off in November 2012 in Pune. The franchise model starts with eight teams, building up to a total of 52 by 2022 representing all Indian cities with a population in excess of one million.
EFLI will work with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket.
Ten Sports has the rights to televise 33 games in the first season including Saturday and Sunday games as well as 13 Monday Night Football games. The league will commence its first nationally televised game beginning November 2012 and the inaugural season will run through February 2013.
EFLI plans to list in the US stock exchange to raise funds for the league.
In an interview with Indiantelevision.com‘s Ashwin Pinto, EFLI CEO Richard Whelan talks about the growing sports market in India.
Excerpts:
You have a scene where different sporting bodies are looking at leagues in India. What is the reason for this sudden push?
India is today one of the fastest growing economies in the world. Its vast middle class population acts as the backbone of its economy. They want more than just cricket; they are today watching F1, EPL, Wimbledon and various other sporting activities. This has encouraged people to explore opportunities in the dynamic Indian sports landscape.
When you look at the Indian sporting landscape, what is your vision for EFLI?
Looking at the sporting scene in India today, the future for EFLI looks very bright. Games like rugby, basketball and lawn tennis have gained a strong ground in this country. Moreover, F1 and other motorsports events too are getting off the ground. The environment for sports in India is very conducive.
Have you done any research to find out how American football is perceived in India?
Clearly we‘ve started from scratch, and the slate couldn‘t have been any clearer for us. This has been terrific. From the early responses to our training and orientation camps, we can tell that India has a great sporting culture hitherto unknown.
The message about the advent of American football coming to India spread virally at the ground level purely through word-of-mouth and we‘ve had a massive response with hundreds of candidates turning up for player and coach trainings. We are overwhelmed with this kind of response, and whilst we understand that we need to educate people about the sport in its entirety, the desire to want to learn is very strong.
Indians don‘t watch much of other sports except for cricket. A few major events like the soccer World Cup get some traction primarily among males. Do you see things changing in this regard?
We have seen some radical changes in Indian sports scenario in these recent years. As recent as two months ago, there was a report in one of the leading English Indian dailies that audience and advertising revenue are bound to multiply in the coming years and that Indians love to see American sports on television.
It‘s fast, furious and fun to watch. They further reported that according to Tam, Indian viewers are now watching sports other than cricket. There is no doubt in our minds that the EFLI has picked the right time for its Indian touchdown. Even women are keen on watching sports!
‘EFLI will create legal bylaws, working with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket‘
You start with eight franchises. How will this be scaled up?
Economically, EFLI will have an astoundingly unmatched impact on India. The league will incorporate sponsorship from around the world and provide a platform for multinational companies to reach India‘s burgeoning retail market.
EFLI will auction eight teams internationally. An opportunity will be created within the Indian investment banking arena to offer franchise, league and team ownership to the public marketplace. India offers enormous room for growth within the industry of sport. The US sports industry is currently valued at a half trillion dollars leading the layperson to easily recognise India‘s potential to reach beyond the scope of the American precedent.
In order to achieve this standard, India must embrace and become a country of many sports. Football will lay the foundation and open the pathway for an explosive sports and media marketplace with reverberating impact into memorabilia and second and tertiary product sales. There is no question that, on behalf of India, football will elicit interest and participation from a broad spectrum of sporting enterprises once the door has been opened.
What are the different revenue streams available to franchises and have you spoken to any parties for feedback?
We are still working out these details.
On the broadcast front, have you signed a deal with anybody?
EFLI has signed letter of intent with Ten Sports to televise 33 games in its first season including Saturday and Sunday games as well as 13 Monday Night Football games.
The league will commence its first nationally televised game beginning November 2012 and the inaugural season will run through February 2013.
Could you talk about how you will partner the sports ministry to set up a governing body like the BCCI?
We have set up EFLI, the first ever American-style Football Federation in India. This allows for the non-profit entity to work directly with the central government of India for the benefit of Indian society.
EFLI will distribute 15 per cent of its revenue to the Sports Ministry of India to help maintain many of its ongoing programmes and facilities.
Also, the league will forge strategic alliances by offering ownership opportunities to all Indian entities; business, military, political, municipalities, private and public partnerships. The EFLI will create legal bylaws, working with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket.
Could you give us an idea of the investments being made and by when you expect the venture to be profitable?
We plan to list EFLI at the US stock exchange to raise funds for the league. We are planning to raise around $10-12 million through this route. Americans know the growth story of India and want to invest in India.
The sports business industry is untapped and they are very familiar with the power behind American football. Besides tapping the US stock market, we are also looking at the option of raising funds from private investors but at this point we have quite a few options. We also have private investors and potential debt investors for equity down the line.
Is the initiative being done under the aegis of the NFL and do you have similar leagues in other markets?
No, EFLI has no affiliation with NFL. It‘s a completely independent entity which was formed by people sharing a similar thought process.
There are various other leagues which are present in the US today like the United Football League (UFL), or the Stars Football League which will begin from August 2011. Even Canada has its own football league called the Canadian Football League (CFL). Apart from these professional leagues, there are other various semi-pro and amateur leagues which are held in various parts of United States.
Could you talk about the team and support staff behind the EFLI?
EFLI‘s management is in the hands of a very dynamic and experienced team. We have Sunday Zeller, who is the founder of this exciting new initiative. She has worked as a marketing consultant in branding and positioning startup enterprises to help attract capital and attention for the past 22 years.
Then we have Alex Emmanuel who is the co-chairman. He was the Tata group global VP for Human resources. He has also worked with MNCs like ABB / Boehringer Mannheim. I am the CEO of EFLI. I come from a stock broking background. I had a firm called Moveable Cubicle. I have been involved in many start-up or early stage private companies, many of which went on to become publicly traded.
Mohan Bangera is our COO. Previously he was Videocon VP marketing and sales. He has been closely associated with sports since a long time. He is the Technical Council of Judo Federation of India Chairman. Bangera comes with 30 years of experience in this field as a player, coach and administrator.
We also have a robust executive management team with specialists from various backgrounds coming on board with their expertise in specific roles such as corporate alliances, production, events, marketing and choreography among other important job functions.
What are the different facets of the EFLI?
EFLI will create an exclusively Indian product packaged perfectly and specifically to advantage television and media support ultimately to become the most valuable sports franchise in the world.
Thousands of jobs will be created as a result of the immense need for coaches, athletes, trainers, referees, and support staff as well as the even greater demand for employees in the legal, maintenance, media, marketing and retail sectors.
EFLI will strive to eventually support the highest paid athletes in all of India. Founding athletes and coaches will have an opportunity to become owners of the league. The league will recruit and train a team that will physically and strategically compete at the level of the current US teams, one day defeating the US in competitive play.
EFLI will establish a grassroots educational project to incorporate the game of football in schools beginning at grade school level extending to universities which will feed the professional recruitment efforts. By introducing and supplying footballs and equipment along with the programme, the league will provide a much needed physical and intellectual stimulus through competitive game play to the male youth of India.
What are logistical challenges you will face and what is the strategy to tackle this?
Educating people about the game, providing them with the right kind of exercise and nutrition to be able to play the game in its true form will be our biggest challenge. And we are fully aware of this, and will do everything possible to make this best in sports entertainment.
What is American football‘s USP from a viewer‘s perspective compared to other sports that Indians follow like cricket and soccer?
Indian viewers have opened up to newer sporting events in recent years. Sports like rugby and badminton have gained momentum in the Indian sporting culture.
The introduction of American football will be a new robust sport that Indian viewers can look forward to. It‘s a game which needs speed, strength and strategy. These traits will keep the viewers to their seats. It‘s a total entertainment for the viewers.
In the US, American football has maintained its pinnacle in a competitive and fragmented market with the Super Bowl being the most watched event in the year. What are the learnings from this success that you would look to apply in India?
When football took off in America in 1960, there was a population of 180 million people; India has 1.2 billion.
America had 45 million TV households; India currently has 130 million and this is increasing exponentially.
The economic strength of the United States was $520 billion; the economic strength of India is currently more than double at $1.2 trillion and growing at a blistering pace! India is without doubt an exceptionally fertile market for the immediate and overnight success of the game of football.
Having said that, you have the disadvantage of a relative lack of awareness for American football compared to other sports in India. How will you work around this?
We agree that there is lack of awareness towards American football in the county but people are willing to know about this game. There is a huge Indian population in America which follows American football. This trend has passed on to the Indian audience as well.
EFLI believes that it will easily be able to capture the interest of the enormous population under the age of 30 which has shown proven interest in American form of sports. The EFLI will be branded as the “New and Cool” intelligent ultimate athlete gladiator sport and form of entertainment.
We also believe that the top US companies with an international presence or those looking to grow their international presence in this enormous 1.21 billion population market will have a keen interest in attaching their brands to the “proven power” of this game. The EFLI will capitalise from the unbelievable discrepancy between the number of unpaid athletes in the country and the enormous potential of gross revenue football has proven to capture through television and electronic media broadcasting, merchandising and licensing revenue, ticket sales, and local and corporate sponsorship as well as future team franchise sales.
We plan to establish EFLI as an educational project at the grassroots level to incorporate the game of football in schools beginning at school level extending to universities which will feed the professional recruitment efforts. By introducing and supplying footballs and equipment along with the programme, the league will provide a much needed physical and intellectual stimulus through competitive game play to the male youth of India.
What new technologies have come in to enhance the viewing experience of American football?
These aspects will be worked upon in close cooperation with our broadcaster partner. Needless to say we will offer our viewers a cutting-edge and technologically advanced viewing experience.
In terms of global television viewership, how does American football compare to the NBA, soccer and tennis?
American football has gained strong ground outside US. It‘s now a very popular sport in countries like Israel, Australia, Belgium, Brazil, Germany, England, Ireland, Italy, Japan, Mexico, New Zealand, Hungary, Norway and Spain. Ironically, these are the nations where soccer and rugby are a religion. In terms of viewership, the Super Bowl has a global audience of over two million – this is an impressive number.
What role do new media like mobile and social networks play for American football in building brand equity?
Mobile and social networks play a huge role in building a brand name for American football. These are the new platforms through which we can spread the word amongst the new generation.
They are connected through Facebook and Twitter for news and information, which I guess is apt to promote the game. Besides, new media tools like electronic and fantasy gaming have already proven their ability to attract consumers and also rake in huge profitability.
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‘India is our largest revenue contributor’ : TSA Group CEO Marcus Luer
As it plans to grow its business in India, Total Sports Asia (TSA) is looking at media formats that combine sports with lifestyle.
Plotting an aggressive growth strategy, the sports marketing company has been able to double its India business year on year.
The business in India has been divided into three verticals – media, licensing and events and sponsorship. Forty per cent of the business comes from media. Another 40 per cent comes from events and sponsorship, while licensing takes up the rest.
In an interview with Indiantelevision.com‘s Ashwin Pinto, TSA Group CEO Marcus Luer talks about the challenges sports marketing companies face in Asia.
Excerpts:
How has the business grown over the last couple of years?
In the TV rights and production business, we are physically involved in over 50 live events across the globe. We provide satellite and production service to our core properties in badminton, table tennis, squash and boxing. We own and sell major properties worldwide including BWF Super Series, ITTF Pro Tour and all other ITTF events, PSA Pro Tour, AIBA Boxing and the World Series of Boxing.So far as partnerships and sponsorships go, we work on both ends of the spectrum. We work directly with rights holders and help them find new partners in Asia, including major football clubs from Europe, F1 teams, US Open Tennis and ITTF Pro Tour.
What challenges did the economic downturn pose for you?
2008-09 were not “fun” years. We had invested heavily into new areas, manpower and had lost a big account. We stuck to our core principals and retooled certain areas of the business. We are on target to have our best year ever.As it plans to grow its business in India, Total Sports Asia (TSA) is looking at media formats that combine sports with lifestyle.
Plotting an aggressive growth strategy, the sports marketing company has been able to double its India business year on year.
The business in India has been divided into three verticals – media, licensing and events and sponsorship. Forty per cent of the business comes from media. Another 40 per cent comes from events and sponsorship, while licensing takes up the rest.
In an interview with Indiantelevision.com‘s Ashwin Pinto, TSA Group CEO Marcus Luer talks about the challenges sports marketing companies face in Asia.
Excerpts:
How has the business grown over the last couple of years?
In the TV rights and production business, we are physically involved in over 50 live events across the globe. We provide satellite and production service to our core properties in badminton, table tennis, squash and boxing. We own and sell major properties worldwide including BWF Super Series, ITTF Pro Tour and all other ITTF events, PSA Pro Tour, AIBA Boxing and the World Series of Boxing.So far as partnerships and sponsorships go, we work on both ends of the spectrum. We work directly with rights holders and help them find new partners in Asia, including major football clubs from Europe, F1 teams, US Open Tennis and ITTF Pro Tour.
What challenges did the economic downturn pose for you?
2008-09 were not “fun” years. We had invested heavily into new areas, manpower and had lost a big account. We stuck to our core principals and retooled certain areas of the business. We are on target to have our best year ever.Are things back to normal now or has the Japan earthquake set things back?
Sports marketing in Asia has been back to normal since 2010, which was also a big Football World Cup year. I believe the industry has growth potential for the next 20-30 years. Of course, there will be course corrections based on global macro economic problems or more domestic issues in key markets which will affect everyone.On the other hand, sports marketing is still only a toddler in Asia and has plenty of years left before it reaches levels of maturity as seen in the US, Europe or Australia. Certain sports have already been developed like cricket in India. But even cricket has plenty of room to improve and grow. As powerful as the IPL is, it‘s not on the same level of professionalism as major football Leagues in Europe. For a still relatively new League, it has done incredibly well and has plenty of room to grow and improve.
How has the business in India grown?
The business from India has been doubling year on year. India has always been a very important market, even prior to 2004 when we set up our local subsidiary. Over the years, India has now grown to be the single largest country in terms of revenue contribution to the group.
‘We already have great scale in India and do very little in cricket. That just shows that there are plenty of other areas to concentrate on and grow the business outside cricket‘Given that India is a one sport country, what is the strategy to build scale here?
We already have great scale in India and do very little in cricket. That just shows that there are plenty of other areas to concentrate on and grow the business outside cricket.We have divided the business into three verticals – media, events and sponsorship and licensing. We do six to seven events a year.
How did you get involved with the Delhi Golf Club?
The Delhi Golf Club made the most sense for us in terms of taking the rights for their calendar year and getting sponsors. We have got sponsors like Mitsubishi Motors and China Tourism. The other option is to do a one off event like everyone else. We did not want to get into a crowded space.How are you going to get involved with the F1 event here?
In F1, our focus is on the teams and only occasionally we work with the local races.I do believe that F1 viewership and general interest in the sport will dramatically grow in India over the next three-five years. I saw it first hand in Malaysia where F1 was unknown to the general public prior to the first race in 1999; now everyone seems to be an expert. I have no doubt that F1 will have a similar success in India. It‘s an amazing product and even more exciting to watch live than on TV.
Once Indian corporations have a chance to see the F1 spectacle live, they will get the idea pretty quickly on how to leverage the power of it in the local market and even worldwide.
In India what work are you doing to grow soccer?
We have worked with several clubs including Churchill Brothers to help them grow their commercial revenue streams. We had partnered with CAA to bid for the rights, which now are handled by IMG/Reliance. So we were ready to invest considerable resources into the sport, but unfortunately came up a bit short.We are seeing sports bodies and agencies making a bigger push in India. WWE just set up an office here. IMG Reliance is doing work to push sports. How will all this activity benefit the sports marketing environment here?
It clearly will grow the size of the pie,,there is no doubt about it. Just like Cricket, there are several other sports which have good growth potential. It has happened all over the world and will happen here as well. Clear second tier sports will emerge and will develop their own niche and space.Growth will be led by new star players emerging in certain sports; the 2012 Olympics will particularly unearth new talent. Sports will be driven by corporations seeking new ways to reach consumers and being driven or prized out of cricket.
Are you looking at the possibility of a JV in India like what IMG has done with Reliance?
We are always open to team up with powerful partners.In terms of leveraging their brands, to what extent is digital becoming important for sports federations and sports marketing agencies?
The digital world is a huge opportunity for sports in general. Niche sports can now deliver their content directly to their fan base without having to rely on the big sports platforms or channels.At the same time, sports is the only true “appointment TV” and, therefore, will continue to drive pay TV and other traditional media platforms as it caters to huge audiences — “live”.
The only difference is sports, where it is all about live experience; no one will tape a crucial match of their favourite team, player or sport. People make “appointments” to watch it live; the delivery mechanism and the viewing experience might change but not the desire to see it while it unfolds. That‘s the true power of sports.
What progress has your online streaming service Total Sports TV made since launch?
It‘s an on-going case study into the digital world for us. We don‘t claim to have found the ultimate solution yet — but it gives us exposure into a new fast developing area and will lead to new business opportunities down the line.How is Total Sports Asia planning to get involved with the 2012 Olympics?
I assume that the economic impact in Asia will be much smaller compared to 2008. We are working with several companies who are major Olympic sponsors and helping them with marketing and leveraging ideas and implementation across the region.I believe the London Olympics will be big in Asia, because of the host city itself. Beijing was unique in many ways and might not be topped in terms of the sheer scale and size. But I have no doubt that London will set new standards in many other ways. Overall, the Olympics will definitely grow in Asia and we will see more and more global sponsors trying to take its advantage by making it locally relevant.
What are the new technologies coming up here that are enhancing the viewer‘s experience?
Our racket sport production business is growing dramatically this year. We have brought in many innovative ideas such as speed guns and virtual technology to enhance the viewer experience. We are also aiming to provide fans with new data and info about their sport.We will continue to work with our Federations to push new technologies and ideas, while making it commercially viable at the same time.
Sports marketing in Asia has been back to normal since 2010, which was also a big Football World Cup year. I believe the industry has growth potential for the next 20-30 years. Of course, there will be course corrections based on global macro economic problems or more domestic issues in key markets which will affect everyone.
On the other hand, sports marketing is still only a toddler in Asia and has plenty of years left before it reaches levels of maturity as seen in the US, Europe or Australia. Certain sports have already been developed like cricket in India. But even cricket has plenty of room to improve and grow. As powerful as the IPL is, it‘s not on the same level of professionalism as major football Leagues in Europe. For a still relatively new League, it has done incredibly well and has plenty of room to grow and improve.
How has the business in India grown?
The business from India has been doubling year on year. India has always been a very important market, even prior to 2004 when we set up our local subsidiary. Over the years, India has now grown to be the single largest country in terms of revenue contribution to the group.
‘We already have great scale in India and do very little in cricket. That just shows that there are plenty of other areas to concentrate on and grow the business outside cricket‘Given that India is a one sport country, what is the strategy to build scale here?
We already have great scale in India and do very little in cricket. That just shows that there are plenty of other areas to concentrate on and grow the business outside cricket.We have divided the business into three verticals – media, events and sponsorship and licensing. We do six to seven events a year.
How did you get involved with the Delhi Golf Club?
The Delhi Golf Club made the most sense for us in terms of taking the rights for their calendar year and getting sponsors. We have got sponsors like Mitsubishi Motors and China Tourism. The other option is to do a one off event like everyone else. We did not want to get into a crowded space.How are you going to get involved with the F1 event here?
In F1, our focus is on the teams and only occasionally we work with the local races.I do believe that F1 viewership and general interest in the sport will dramatically grow in India over the next three-five years. I saw it first hand in Malaysia where F1 was unknown to the general public prior to the first race in 1999; now everyone seems to be an expert. I have no doubt that F1 will have a similar success in India. It‘s an amazing product and even more exciting to watch live than on TV.
Once Indian corporations have a chance to see the F1 spectacle live, they will get the idea pretty quickly on how to leverage the power of it in the local market and even worldwide.
In India what work are you doing to grow soccer?
We have worked with several clubs including Churchill Brothers to help them grow their commercial revenue streams. We had partnered with CAA to bid for the rights, which now are handled by IMG/Reliance. So we were ready to invest considerable resources into the sport, but unfortunately came up a bit short.We are seeing sports bodies and agencies making a bigger push in India. WWE just set up an office here. IMG Reliance is doing work to push sports. How will all this activity benefit the sports marketing environment here?
It clearly will grow the size of the pie,,there is no doubt about it. Just like Cricket, there are several other sports which have good growth potential. It has happened all over the world and will happen here as well. Clear second tier sports will emerge and will develop their own niche and space.Growth will be led by new star players emerging in certain sports; the 2012 Olympics will particularly unearth new talent. Sports will be driven by corporations seeking new ways to reach consumers and being driven or prized out of cricket.
Are you looking at the possibility of a JV in India like what IMG has done with Reliance?
We are always open to team up with powerful partners.In terms of leveraging their brands, to what extent is digital becoming important for sports federations and sports marketing agencies?
The digital world is a huge opportunity for sports in general. Niche sports can now deliver their content directly to their fan base without having to rely on the big sports platforms or channels.At the same time, sports is the only true “appointment TV” and, therefore, will continue to drive pay TV and other traditional media platforms as it caters to huge audiences — “live”.
The only difference is sports, where it is all about live experience; no one will tape a crucial match of their favourite team, player or sport. People make “appointments” to watch it live; the delivery mechanism and the viewing experience might change but not the desire to see it while it unfolds. That‘s the true power of sports.
What progress has your online streaming service Total Sports TV made since launch?
It‘s an on-going case study into the digital world for us. We don‘t claim to have found the ultimate solution yet — but it gives us exposure into a new fast developing area and will lead to new business opportunities down the line.How is Total Sports Asia planning to get involved with the 2012 Olympics?
I assume that the economic impact in Asia will be much smaller compared to 2008. We are working with several companies who are major Olympic sponsors and helping them with marketing and leveraging ideas and implementation across the region.I believe the London Olympics will be big in Asia, because of the host city itself. Beijing was unique in many ways and might not be topped in terms of the sheer scale and size. But I have no doubt that London will set new standards in many other ways. Overall, the Olympics will definitely grow in Asia and we will see more and more global sponsors trying to take its advantage by making it locally relevant.
What are the new technologies coming up here that are enhancing the viewer‘s experience?
Our racket sport production business is growing dramatically this year. We have brought in many innovative ideas such as speed guns and virtual technology to enhance the viewer experience. We are also aiming to provide fans with new data and info about their sport.We will continue to work with our Federations to push new technologies and ideas, while making it commercially viable at the same time.
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‘We are now in a very strong position to overcome any new challenges in the Indian marketplace’ : WWE International executive VP Andrew
Earlier this year to better reflect its business, World Wrestling Entertainment rebranded as WWE. Among other things, it is looking to develop new television products including scripted, non-scripted and animated programmes as well as the launch of a new WWE Network in the next 12-18 months.
Recognising the importance of India, the company this month set up an office here with Rukn Kizilbash as its head. The company has a strong association with Ten Sports and is also exploring possibilities of putting its content on regional channels.
In an interview with Indiantelevision.com‘s Ashwin Pinto, WWE International executive VP Andrew Whitaker talks about the company‘s growth plans in India.
Excerpts:
You recently opened an office in Mumbai. Given that this is an important market, why did it take so long?
India has been one of our most successful television markets for a number of years now. In line with our global strategy, since we have begun to introduce our other lines of business, the time is now right to begin building a more local presence in the market. The Mumbai office is the first step of that process.Could you talk about the opportunities and challenges that you will face in India?
With our new Mumbai office and Rukn Kizilbash in place as general manager India, as well as our strong TV penetration with Ten Sports and other lines of business, we are now in a very strong position to overcome any new challenges in the marketplace.We have an extremely loyal and extensive fan base in India and are highly confident about the opportunities open to us in this important market.
How have you built upon the relationship with Ten Sports?
Ten Sports is pivotal to our success in the market. We deliver fresh original content 52 weeks of the year and are able to provide new content to meet with the growing demands in the market. The promotional strategy we deploy with Ten Sports includes implementing regular local consumer promotions and bringing WWE Superstars to market every year.Are you talking to regional channels regarding having your content being seen there?
We are working with Ten Sports to see if we can make some content available on regional channels.Live events will play a big role in terms of growing the fan base here. What can we expect?
We have held live events in India in the past and I think this is something we will consider for the near future.“We are working with Ten Sports to see if we can make some content available on regional channels”You now have a talent development department. Is India going to be a part of this?
We have seen a number of non-American talent prosper within WWE, from The Great Khali to Rey Mysterio and more recently Alberto Del Rio, Sin Cara and Sheamus. In fact this year we signed a new talent from India, Jinder Mahal.This success indicates a significant appetite and opportunity for us to actively recruit international talent and it is an area we will continue to invest in across all markets, including India.
How have you grown the studio side of the business over the past couple of years?
From 2010 through 2012 we have a full slate of nine movies, four of which have been released so far. These are ‘Legendary‘, ‘Knucklehead‘, ‘The Chaperone‘ and ‘That‘s What I Am‘.We have successfully deployed a deal by deal model which allows us to achieve structural efficiencies per movie. This model has seen our movies released through multiple platforms around the world including theatrical, home video, pay-per-view, VOD/Pay TV and Free TV. The remaining releases for this year include ‘Inside Out‘ and ‘Family Reunion‘.
Is there a chance of doing a film co-production in India?
It‘s certainly something we may consider. We enjoyed a successful partnership last year with Viacom whereby one of our top WWESuperstars, The Great Khali came runner up on Bigg Boss.There are a number of parallels to be drawn between WWE and Bollywood and we see great opportunities for us in this area.
What strategy has WWE followed to grow the brand globally over the past couple of years?
Our global growth strategy on a market by market basis is first to bring WWE‘s television programming into the marketplace, which is usually the starting point to begin engaging fans and bringing our unique form of entertainment into people‘s homes. Once we have established a strong television audience, we then look to introduce our other multiple lines of business, from live events where fans can see our Superstars live and in person to our vast lines of consumer products, digital media and publishing.WWE is a global business, seen in more than 145 countries in 30 different languages, and key to our successful global growth is our local office presence. We have offices in Stamford, New York, Los Angeles, London, Shanghai, Singapore, Tokyo and now Mumbai, which are fundamental to our local level operations.
Has there been any change in terms of how fans in India and globally perceive WWE?
I think that our fans have always understood that WWE is fundamentally an entertainment business. In India our partnerships with the likes of Ten Sports, Sify and Mattel provide our fans with multiple brand touch points across TV, online and consumer products and our fans have responded well to our evolution and growth as a family-friendly integrated entertainment business.To what extent has the share of revenue from international markets grown? Which are the top three markets?
When we set up our first international office in London in 2002, international revenues were worth $32 million. That figure has now grown to over $133 million.Outside of the USA and Canada, our biggest markets are the United Kingdom, Mexico and France.
In terms of your various divisions, which has shown the healthiest growth and why?
Internationally, our television business continues to grow and remains our most profitable division. We have also expanded our global live events business, now scheduling more than 70 international live events on an annual basis.Since 2006 international consumer products revenue has doubled, meaning that the retail brand value of WWE now exceeds $1 billion per year globally.
In terms of the new business model, which are the key focus areas?
There are two key components to WWE‘s recently announced brand expansion plans. First, the company will maintain a strong focus of growing its core business on a global basis and announced that Paul “Triple H” Levesque will be heading a new talent development programme.In addition, innovation will be the key to the long term growth through new consumer product launches, new television programming and international growth.
The second component will be the active pursuit to acquire entertainment content companies and the outsourcing of WWE‘s core competencies – television and film production, live event production and licensing.
What targets has WWE set for this year?
Internationally, our focus continues to be on the Bric markets on the back of our recent TV launches with 2×2 in Russia and EI in Brazil and the growth of our already established business operations in India and China.As mentioned above, our new talent development department will be another key focus for us in 2011.
What growth has there been in terms of doing international tours and holding ‘Raw‘ and ‘Smackdown‘ abroad?
As I mentioned above, we operate over 70 live events internationally each year and are continuously exploring potential new live event markets. In the last five years, we have held live events in 35 different countries.To date, we have taken our Raw and SmackDown TV events that you mention to three markets outside of the USA and Canada – the UK, Japan and Italy – and in May of this year we announced that in October 2011 Mexico will become our fourth international market to host our Raw and SmackDown TV events.
You recently rebranded as WWE. What was the aim?
WWE is constantly evolving and this is simply the next step in that evolution to provide a ‘bigger, badder and better‘ – as we say in our advertising campaign – entertainment product for our fans.There has been talk about mixed martial arts and boxing now providing more competition for your viewership globally. I would appreciate your take on this?
We don‘t view MMA or boxing as competitors for our viewership globally. Their product is completely different to WWE. Whilst they may borrow from various elements of WWE‘s production to entertain their own fans more, what they provide is a pure sporting spectacle.We view our competition as any live or televised family entertainment event.
You have stars of the past returning briefly like Bret Hart. Is the aim to reinforce WWE‘s brand value?
We are fortunate enough to have an extremely loyal and diverse fan base on a global basis, spanning all ages. As such, WWE has the ability to bring back stars of the past and feature them in programming from time to time, thereby creating both nostalgia and new storyline angles.What role is the global tie up with Mattel playing in growing your licensing and merchandising business?
With Mattel, the number one company in toys, WWE has enjoyed impressive growth in its toy revenues. Mattel‘s distribution footprint is unrivalled.Allied to the reality of reaching more fans and customers in more countries is Mattel‘s innovation of various WWE lines.
New play patterns in the action figure segment as well as bringing genuine scaling mean the current line of action figures are as accurate and detailed in their depiction of WWE Superstars than ever before.
How are you growing the consumer products business in India?
We have announced our appointment of the specialist licensing agency Dream Theatre to undertake the task of developing a scaled up programme of branded consumer products.Local licensees in apparel, footwear, stationery, publishing, magazines, nightwear, underwear and novelties are due to be added over the next two years to compliment the efforts of Mattel, THQ and Topps. We anticipate direct to retail tie ups and traditional licensees representing WWE‘s business as it continues its efforts to grow distribution as India‘s retail landscape continues to change and mature.
Piracy is a big concern especially in markets like China. How are you tackling this issue?
WWE is actively engaged in minimising the impact of piracy and counterfeit products on its businesses. We have a robust and mature trademarks registration and protection policy.The company takes down sites in real time that illegally stream WWE‘s PPV‘s, which otherwise represent a significant segment of annual revenue. The company also ensures that it seizes all counterfeit goods and legally challenges those companies and individuals found guilty of their manufacture and distribution.
Piracy is a problem all over the world and cheats fans of genuine articles. It is a cost burden for brands and limits the investment being made in new lines for those consumers purchasing the genuine and authentic branded products. We are committed to continuing to do our utmost to protect our IP in every country.
How is WWE expanding its presence in the digital space?
WWE has seen 1,000 per cent growth over the last year in worldwide fans to our Facebook pages. We are currently working with Sify, our web partner in India, to create a WWE branded Facebook page with a few simple but powerful goals in mind:To build a direct connection with our fans in the local market, create awareness of our local site (wwe.in), encourage brand loyalty through special offers and promotions, and give fans the opportunity to connect and share their passion for our brand with other fans.
Could you shed light on how social networks are changing the equation between WWE and its fans?
The way I see it, the rapid adoption of social networks gives a large amount of power to the fan. It is less about “selling” and more about engaging with the fans. WWE is taking a more editorial rather than a promotional approach with social networks. The key is to use social networks to entertain and inform while subtly marketing to fans.Are the social networks allowing you to change course and take corrective action quicker?
Absolutely! social media gives us immediate feedback to everything we do as a company.We have Facebook pages for many of our products from the WWE Superstars to our merchandising and the information we receive is shared directly with our creative and editorial teams. Social media feedback is key to our future initiatives.
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‘We share cordial relations with the BCCI’ : Kings XI Punjab co-owner Mohit Burman
Amid controversies surrounding shareholding issues and a termination notice from the BCCI, the spirit of Kings XI Punjab hasn‘t dampened. The Indian Premier League franchise expects to break-even this year as it targets a 15–20 per cent increase from all revenue channels.
Though the drama off the field and the court proceedings caused damage to the brand, Kings XI Punjab has fought back and managed to retain four of its existing sponsors.
In an interview with Indiantelevision.com’s Ashwin Pinto, Kings XI Punjab co-owner Mohit Burman talks about the hard times the franchise had to go through while staying on course to turn profitable.
Excerpts:
The BCCI had terminated its IPL contract with Kings XI Punjab and now the team is back. What is the current relationship with the BCCI?
We share cordial relations with the BCCI. After all, it is in both our interests to run the league smoothly.What was the argument that you made in court over the BCCI‘s abrupt termination?
The BCCI had a certain opinion about the shareholding structure of the company, which was factually incorrect. The court in its interim order has accepted our position on the issue.Amid all the controversies including the one for overseas broadcast rights, are you concerned that the IPL‘s brand value might take a hit?
Brand IPL has only been growing these past three years. We believe that this will further grow with each passing season.Does the BCCI need to adopt a more inclusive approach and involve franchises when it takes big decisions?
The BCCI and franchisees form the IPL. Hence, it is only right that both engage with each other in the best interests of the league.There are now 74 matches as opposed to 94 envisioned earlier. What impact will this have on your revenue?
Each franchise shall still play 14 games at the league stage. I do not, therefore, see any great impact on revenues. We are confident of breaking even this year.‘Though there are 74 matches as opposed to 94 envisioned earlier, there will not be any great impact on revenues. Each franchise shall still play 14 games at the league stage. We are confident of breaking even this year‘Some feel that the BCCI should not have added two new franchises. Do you agree?
I don‘t see 10 teams as problem. It was always known that two new teams would be added in 2010.Yuvraj and Mahela are match winners in their own right and we did try to bring both of them back into our team. But after a point, the costs for individual players affect the composition of the team. At the end of the day, one has to formulate a team vis a vis spending the bulk of our purse on individual players. We have added 12 uncapped players including Nitin Saini, Sunny Singh, Siddharth Chitnis and Paul Valthaty.
How would you describe the progress that Kings XI Punjab has made over the past three seasons of the IPL?
We have come a long way since the first auction when nobody was sure if this format would work at all. Over the past three years, we have seen a number of ups and downs.
The first season was a good season for us from a cricketing perspective as we reached the semifinal, but then we slipped and our performance has been below par in the last two seasons. But with the learning’s from the previous seasons, we have now worked out a very balanced cricket team under an IPL winning captain – Adam Gilchrist. We strongly believe that our new team has the potential to win the IPL and make all our fans and supporters very proud of us. With three seasons behind us, we have only learnt more and understood how the business of sport and entertainment works. We are now in a better position to plan and execute effectively with clear objectives.What have the key learnings been?
The IPL is a very interesting product as its gets cricketers from across cultures who have always played against each other but are now playing in the same team. Hence, we have realised that the success of the team depends on how well the team gels together and plays as one unit while understanding each other’s limitations and strengths.From a brand perspective, IPL team fans were initially excited about the cricket stars in each team. However with our efforts over the last few years and even going forward, we are trying to position Kings XI Punjab as the prime product and have the fans support the team rather than the stars in it.
Over the last three seasons, we have had partners who have stood by us and believed in brand Kings XI Punjab. For the coming season, we have renewed four of our partners (Emirates is the Title sponsor while Reebok is the Official Apparel Partner, USL is Official Games for Challenge Partner and Wrigley is the Official Chewing Gum) as we believe that long term associations is where the value in sport sponsorship lies.
How hard has it been to get the sponsors on board after all the controversies Kings XI Punjab went through?
It is fair to say that the happenings off the field initially had an effect on the perception of the sponsors to a certain extent.However, the fact that four of our existing sponsors have signed again with us should indicate the trust and faith that sponsors have in us as a franchise and the value that they see in associating with us. You shall soon hear of many more sponsors coming on board with us for the coming seasons.
Is it just money that you are looking for or are there other parameters?
We are a group of friends who invested in this venture as all of us are passionate about sport in general and cricket in particular. We also saw value in this model as a business proposition.What revenue growth are you eyeing this year?
We are looking at a 15–20 per cent increase on all revenue channels across the board.Two new franchises means more clutter for advertisers. How do you see things playing out in terms of brand recall?
All the teams are assigned Catchment Areas and Bases. This should take care of the brand recall to an extent. We have invested time, effort and money into building brand loyalty,
which is the hallmark of our franchise. We value our association with our fans and are grateful to them for standing solidly behind the franchise at all times.It is also very important to realise that sponsors come into the IPL market with their own set of objectives and plans. Some brands use this platform just as a branding exercise while others rely on activities around the team and players.
The TRPs of the IPL in the past three years have been more than impressive as it is the biggest sporting property in the country.
What initiatives are you planning for to build fan connect this year?
We are looking at increasing our fan base by conducting activities for the Lion‘s Den, which is our Fan Club. These would be online through our website and on ground activities in our catchment areas of Punjab, Haryana, HP and J&K.Fans can win tickets, merchandise and also get to meet and train with the team. You will see all this happening in the lead time to the season and even during the off season.
In the past you have been careful about marketing expenses due to the economic climate. Will these expenses be reduced further this year?
We have budgeted for what is required to meet our marketing objectives.What strategy are you looking at to build the licensing and merchandising side of the business?
The licensing and merchandising market is still at a nascent stage in India. Unlike a traditional and regular licensing and merchandising programme, we have had to create a plan according to the market needs.While we have licensed our team kit to Reebok, we have also identified other partners for sole merchandising. We have signed up a specialist partner who shall represent us in the licensing space. We shall be making announcements about the same in the days to come.
Is Kings XI Punjab looking for a CEO?
We are not looking for a CEO. Arvinder Singh heads the management team as the COO.Are you interested in being involved in other sports?
The IPL has changed the way sport is successfully run in India and as part of the IPL, we are in a good position to help develop other sports.We have always said that we are a community-driven team and one of our core objectives is to give back to sports. Hence, as and when feasible and excitable projects come along, we shall take a call at that time.
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ICC to take legal action against infringing news channels, will allow WC coverage of final
MUMBAI: The International Cricket Council (ICC) has decided to allow the news channels to cover the final of the cricket World Cup on 2 April.
However, the game’s governing body has also decided to take legal action against the channels who are not adhering to the guidelines.
The ICC said Friday that it “will begin legal proceedings against offending Indian news channels who have repeatedly breached the News Access Guidelines for broadcasters for the ICC Cricket World Cup 2011”.
ICC said that despite lengthy meeting at the Information and Broadcasting Ministry in New Delhi, the National Broadcasters Association (NBA) and the Broadcast Editors Association (BEA) “refused” to give assurances that they would desist from breaching the broadcast guidelines in their news programming.
And thus, it (ICC) has decided to commence “legal action against the companies involved and will also seek to recover damages through the courts in India rather than bar the stations from the ICC Cricket World Cup final.”
ICC CEO Haroon Lorgat said, “I am very disappointed that it has come to this. However, we need to do everything to protect our exclusive commercial rights and those of our partners. If that means we have to resort to legal action, that is regrettable but necessary.”
Earlier, I&B Minister Ambika Soni had intervened and written to ICC president Sharad Pawar to take some action. Lorgat said that at the Ministry’s request, ICC officials travelled to New Delhi to meet with the NBA and BEA in an attempt to resolve the issue. “But they (NBA and BEA) were unfortunately not willing to conform to the guidelines agreed with the ICC prior to the event,” Lorgat said.
He added that accreditations were issued to the NRH reporters and cameramen on condition that guidelines were observed. Subsequently those guidelines were breached on several occasions, particularly in respect of the blatant commercialisation of ICC World Cup footage and proprietary data by certain news broadcasters.
“In the interests of the event, we have agreed to reinstate their accreditation for the final match of this hugely successful World Cup. However, following a number of written warnings to the channels concerned, it is now time for the ICC to act through the courts,” Lorgat added.
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World Cup: ICC issues footage guidelines for news channels
MUMBAI: The International Cricket Council (ICC) has come out with its news access guidelines for broadcasters in India intending to cover the cricket World Cup starting next month.
Being just unveiled, news broadcasters are going to take a common stance through the News Broadcasters Association (NBA) after studying the footage cap thoroughly.
According to the guidelines, a news broadcaster may broadcast a maximum of 5.5 minutes of fresh footage of the cricket World Cup per News Day, provided always that:
(a) not more than a maximum of two minutes of Fresh Footage may be broadcast per hour of broadcasting; and
(b) the number of repeats of any Fresh Footage is restricted to a maximum of two exhibitions per hour of broadcasting.
These guidelines are solely for bona fide news broadcasters registered under the category of “News and Current Affairs” channels according to India’s Ministry of Information and Broadcasting.
They are issued on the principle of copyright fair-use principles and are valid until 24 hours after the end of the last match of the event.
It might be recalled that last year the Indian Premier League (IPL) had a tussle with news broadcasters over terms and conditions. At the last moment a solution was found.The use by a news broadcaster of live footage is not permitted at any time under any circumstances. There must be a minimum of at least 60 minutes delay following the live broadcast of any footage by the official/host broadcaster before any extract of such Footage may be used by the news broadcaster
A news broadcaster may broadcast a maximum of six minutes of archival footage per day, provided always that:
(a) a maximum of two minutes of the Archival Footage may be used per hour of broadcasting; and
(b) the number of repeat exhibitions should be limited to four per News Day with not less than a two-hour interval between each exhibition.
The use of fresh footage and the use of Archival Footage pursuant to paragraph 8 above is strictly limited in each case to use within news and/or current affairs programmes. No use of fresh footage and/or archival footage is permitted in any circumstances for any commercial purposes.
News broadcasters are allowed live video streaming of their news channels on their official nominated websites as long as it is a simulcast of the entire channel as aired on the broadcaster’s television news channel and is not broadcast online on-demand, in a deferred manner or provided as highlight packages or clips. Subject to the aforementioned, news broadcasters shall not display deferred or Archival Footage, whether as part of news bulletins or otherwise, on their own website(s) or via their account or page on a third-party video-upload site such as YouTube, DailyMotion, Facebook, etc.
A news broadcaster may commercially exploit a news and/or sports and/or current affairs and/or other programme within which Fresh Footage and/or Archival Footage is broadcast as a whole, in the regular course, through normal advertising breaks usual in programming of news channels, provided always that no advertising, sting, logo, graphic and/or any other commercial (morphing) activity occurs immediately before, immediately after or during the Fresh Footage and/or Archival Footage and no association is created, suggested or implied between the use of Fresh Footage and/or Archival Footage and any third party brand or product.
To clarify further, no programme, bulletin or segment (whether a news or sports bulletin, special programme or promotional programme) that uses Fresh Footage and/or
Archival footage may have a title or other sponsor and no advertisement may be used or repeated in the regular advertising breaks during the programme in such a manner as to create, suggest or imply an association between the advertiser and the Footage or the Event.
Courtesy bugs acknowledging IDI and ESS must be pasted by the Designated News Broadcaster, with due prominence, throughout the broadcast of any Fresh Footage and/or Archival Footage.
News broadcasters must use the correct name of the Event (being either ICC Cricket World Cup 2011 or the shorter title „ICC Cricket World Cup) and the Event Logo in any and all broadcasts in which the Event is mentioned or referred to, whether or not including the broadcast of any clips of fresh footage and/or archival footage. For the avoidance of doubt, there should not be any direct commercial association created, suggested or implied between any third party brand or product and any Event Marks.
In the event that the Event logo or the ESPN Star Sports (ESS) logo should be covered by the logo of the Designated News Broadcaster, the news broadcaster must include a courtesy line extended at the bottom of, or elsewhere, on the screen.
News broadcasters may only use footage as above without financial obligation to IDI. The ICC has warned that any use beyond as permitted under these Guidelines, if not under a prior bilateral agreement between the relevant Designated News Broadcaster and IDI, will be treated as a violation and, in the case of Archival Footage, shall be subject to payments in accordance with the Footage Licensing Rate Card. It is $800 (0-60 seconds) and archival gootage is for $1000 (0-60 seconds)
IDI may exercise its other remedies, including possible suspension of media accreditation, pending payment of such fees for overuse of Footage. It is further clarified that IDI has certain legal obligations to its official broadcaster and is only able to grant rights hereunder (including rights subject to the Footage Licensing Rate Card) subject to these limitations, which include that only an aggregate 10 minutes of Archival Footage from the events listed in Schedule 2 may be used in any one programme.
If the news broadcaster’s use exceeds such limitations, in addition to agreeing to pay IDI the fees for overuse under the Footage Licensing Rate Card as above, the Designated News Broadcaster hereby (i) agrees to indemnify IDI for any and all losses or damages that may be due from IDI to its official broadcaster as a result of the violation and breach of their agreement resulting from such overuse and (ii) acknowledges that it may be subject to IDI’s official broadcaster’s legal remedies directly for such overuse.
IDI retains and, to the extent required, is hereby granted by the relevant copyright owner governed by these Guidelines, the rights to monitor and enforce compliance by Designated News Broadcasters and associated and unassociated third parties with these Guidelines (whether by means of anti-infringement actions, legal proceedings or otherwise) and with the copyright law in force.
In all such cases the relevant Designated News Broadcaster will not undertake any act to obstruct, nullify or obviate the rights of IDI granted hereunder.
The ICC has said that the usage by news broadcasters of footage in connection with the World Cup shall be monitored by a Designated Monitoring Agency on behalf of IDI and IDI expressly reserves all of its legal rights and remedies against any Designated News Broadcaster that breaches these guidelines.
So how are the Indian broadcasters reacting to the guidelines? Says BAG Films and Media CMD Anurradha Prasad, “The NBA has to take a call on the issue. Members will go along with what has been decided. It is important that everybody is on the same page.”
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‘Break even will take five to six years for new franchises’ : GroupM ESP managing partner Hiren Pandit
Bigger, better, richer. That is what the franchises hope the Indian Premier League (IPL) will grow into year after year.
In an interview with Indiantelevision.com’s Ashwin Pinto, GroupM ESP managing partner Hiren Pandit talks about the vast revenue opportunities that are waiting to be tapped as the IPL grows into a sporting spectacle.
Excerpts:
How is GroupM ESP involved with the IPL this time around?
We do deals with franchises on behalf of our clients. There are logos on T-shirts and also innovations that have not been done before. We create revenue opportunities for the client as well as the franchise. This is in the form of licensing and merchandising.Are franchises able to fetch better rates this year with the economic situation somewhat improving?
Keep in mind that last year local activation could not take place due to the shift to South Africa. This year, some amount of rationalisation has taken place. There is measurement in place. You know whether you should pay Rs100 or Rs 150. Most team sponsorships have been sold.In terms of local revenue, how will franchises fare this year as per your calculations?
It will increase by around 20 per cent for each franchise. Revenues on T-shirts are anywhere from zero for Bangalore (The UB Group uses its own brands) to Rs 400 million for Kolkata. Delhi and Chennai will each earn Rs 330 million. Mumbai, Rajasthan and Punjab will individually earn Rs 300 million. Hyderabad will earn around Rs 200 million. The big difference is the logo on the right chest which will add Rs 30-50 million in revenue. Licensing and merchandising is just starting to happen. So this will take time to grow.Kolkata will get hit in terms of gate receipts as the two large stands that seat the most number of people is being reconstructed. Mumbai’s matches will happen in the CCI and DY Patil. Ahmedabad should boost Jaipur’s gate receipts. I, however, do not know the extent to which Dharamshala as a venue will help Punjab. The question that remains is Hyderabad. There needs to be some clarity on where the matches will be played.
If you include the central pool, how much revenue will franchises earn?
It will be a 25 per cent growth overall. Each franchise will earn $12-14 million from the central pool. The local pool will contribute around $8-10 million. Revenues from theatres, YouTube and Colors will also kick in. This will add a certain amount but it will not be dramatically different.Will Hyderabad’s revenues be hit due to the venue being shifted?
I am not so sure that Hyderabad sponsorships will get hit as it depends on TV exposure. On the back of that, activation will be done. In-stadia activity, though, will be hit. But licensing and merchandising may stay unharmed. It depends on the kind of deals that they will do. It remains to be seen how much revenues come from ticketing.‘Franchises will see a 25 per cent growth overall. Each franchise will earn $12-14 million from the central pool. The local pool will contribute around $8-10 million. Revenues from theatres, YouTube and Colors will also kick in‘Is there a danger of sponsorship getting cluttered?
From what we gather, the number of brands on IPL was 40 in the first season and 68 in the second. We expect the number to touch 80 in the third season. It is clutter but since it is at home, clients can do more activation. There needs to be innovation done by companies in terms of their campaigns. You cannot do what was done earlier unless you are sure that it will stay fresh. It needs to be different. Just keeping a logo on the T-shirt is not enough.Could you give me a couple of examples where team sponsors have successfully leveraged the IPL?
Idea Cellular did something different with the Mumbai Indians in the second season. Their users could have conversation with players. Wrigleys did something different by associating with all teams. Vodafone did the Zoozoo campaign which was a wake up call to competition. Sprite did the unique ‘Seedhi Baat, No Bakwaas‘ campaign with Kolkata.What is the key to a successful licensing and merchandising campaign?
Both parties have to make money. The distribution platform has to be solid and give access to all potential buyers. Under licensing and merchandising, the franchisee gets a flat amount and then a share on revenues – depending on sales. It will be a slow burner, though. And it will not kick in from day one. A substantial amount of promotions will be needed.Licensing and merchandising is different from having a logo on a T-shirt. People are still struggling to figure out what is the difference between advertising and licensing and merchandising. These two categories are separate but are getting mixed up. That actually helped Wrigleys who did a smart number on franchises. They did a partnership at a low cost and signed up most franchises for three years. From what I understand, Wrigleys can now milk the value of its deals to such an extent that franchises feel that they did not get the value that they were looking for. I don’t think that Wrigleys shares revenues of its products. Franchises now realise that the deal might have been a mistake for them.
Have the franchises got it right on ticket pricing?
I assume that they would have learnt from the first season. They will know what works and what does not. You need to analyse in detail what was done in the first season – what was right and what was wrong. If they have not done that the same mistakes will be made again. You also need to do activities to make fans come to the stadiums. The in-stadia experience will be far better this time. Catering is centrally managed. There are now turnstiles and so the number of people entering and leaving can be checked.Will the break even period elongate for the new franchises as the IPL has set a fourfold increase in base price?
The revenue opportunities have grown. The break even position, however, depends on how one manages costs and the revenue generation potential of a city. Some cities will perform better than others. But generally, it will take five to six years for the new franchises to break even. The time taken to break even is also a question of how innovative can the new owners be in generating revenues. Local revenues should rule over the earnings from the central pool. Anybody who can do this will have a model that will set themselves up to making money that would justify the price tag.Who has fared the best in this area so far?
The closest that anybody has come to achieving a great model is Kolkata. The fact that Shah Rukh Khan has lent himself to his sponsors like Nokia and Sprite has worked. He has extracted more revenues as a result. So instead of charging Rs 40 million, this franchise can charge Rs 70 million. Other teams also have values but I am not so sure that they are using it to their maximum potential. No franchise is optimising local sponsorship the way that they should.Also, keep in mind that with more teams coming in, costs and revenues will go up. The impact will be felt across the board. Player costs, travel and stadium maintenance costs will rise. Sponsorship revenues will also go up. All this has to be taken into account by whoever is bidding.
Another issue is that current franchises will be allowed to retain some key players even after the third season. This could limit the pool of payers who are available to the new franchises. How do you see things panning out?
A middle ground will have to be found. This is a sticky issue. On one hand, you have India Cement saying that since they have invested in Dhoni and have built their team around him, he must be retained. Otherwise the team’s value will be affected. On the other hand, the new franchises need to have a solid pool of players to pick from or else they might decide not to play. A balancing act will have to be performed by the IPL Governing Council.Rajasthan Royals has tied up with other cricket clubs globally. Is this the trend for the other franchises as well?
If you have world class players who can play in different countries and fill a stadia, then it forms another revenue stream. The IPL guidelines state that Rajasthan Royals cannot play against Kolkata in, for instance, England. So by doing this kind of a tie up, they avoid that situation. Events can take place all over and more money flows in. There is an opportunity here.Do you see the IPL playing out well in cinema theatres?
This year it will be a tried and tested concept. The concept looks very impressive. You will have high definition which makes a big difference. The 16:9 screen size will allow you to see more ground. This is the summer and people might want to go to an air conditioned place and enjoy it together. It is about the quality of experience. If it is good, then word of mouth will spread.How important is the YouTube deal in spreading the IPL brand globally?
It is fantastic on two levels. In India, you can sit in the office and watch matches. It is a question of bandwidth. I would expect people to avail of the highlights package for matches that happen between 4-7 pm the next day. Then there is the Indian diaspora who want to watch the IPL but have no access.The question is how YouTube is going to monetise the IPL property. Will YouTube become pay for international markets? Today they have said no. They can continue to say no if there is enough ad support.
The Champions T20 League got off to a slow start. Where do you see it going from here?
I was surprised that it got off to such a slow start. But if people thought that the Champions Twenty20 League would do as well as the IPL, then they were wrong. The IPL and Champions League are about clubs. The club culture has not yet come in the country. It will take time. The second reason is that the three Indian teams did poorly in the Champions League. The interest among audiences fizzled out.The franchises and the IPL need to start developing a club culture. Nobody says that they want to go for an IPL match to see a particular franchise play. They simply go for great cricket. That has to change. You need to create a fan base that is passionate about the team per se, even if it comes last. Franchisees need to invest money in creating a club culture.