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  • Digital cable heart of Zee’s WWIL story

    Zee Telefilms chairman Subhash Chandra is on a roll. The resurgence of flagship Hindi entertainment channel Zee TV has come after years of slippage since Kaun Banega Crorepati catapulted Star plus into leadership position.

    But this is not just about Zee TV‘s prime time assault on Star Plus; it is also about how Chandra is preparing for the big fight against Rupert Murdoch in the direct-to-home (DTH) space which will determine who will dominate the broadcasting business.

    Laying the preparatory ground, Chandra has streamlined his media empire to give it the right focus, resources and value. His announcement on 29 March: Zee Telefilms will be de-merged into four separate entities. While cable business will come under Wire and Wireless India Ltd (WWIL), Dish TV will handle the DTH operations. News and regional channels are being consolidated in Zee News Ltd. Under the umbrella of Zee Telefilms will be the newly launched Zee Sports.

    The “sum total of the parts” concept ignited the scrip which, once hovering around Rs 130-150 in mid-2005, has breached the 200-mark and closed today at Rs 227.

    In the first of a four-part series, Indiantelevision.com takes an in-depth look into the de-merged cable business of Zee Telefilms.

    Subhash Chandra sees a golden opportunity in the cable TV business becoming a crown jewel in his media empire. His new mantra: digitalisation, broadband and Voice over Internet Protocol (VoIP).

    Media czar Subhash Chandra

    Having built the largest network in the country with a base of 6.8 million subscribers, Chandra has set upon himself the task of refashioning the business model to discover hidden value. His first step: to hive off the cable assets into a separate company, Wire and Wireless India Ltd (WWIL), as it would allow for better allocation of capital and management resources.

    Jagjit Singh Kohli, a doyen in the industry, is put at the steering wheel to chalk out a comprehensive business plan. “We have identified cable distribution as a thrust area. We are building a separate team under Kohli to work out the full plan. Digital cable will help push up the ARPUs (average revenue per user). We can also share the infrastructure with telecom companies for voice services,” Chandra told analysts at a meeting after announcing his de-merger plans.

    Chandra is weary of the fact that multi-system operators (MSOs) have been incurring historical losses in an unorganised sector dominated by last mile operators (LMOs) who terribly under-report subscriber numbers. For the fiscal ended March 2006, Zee‘s cable business barely managed to post an operating profit of Rs 17 million on a revenue of Rs 1.5 billion. Lack of addressability in the industry has, in fact, dragged down valuations of analogue cable networks.

    Making digital cable the heart of WWIL‘s growth strategy, Chandra has earmarked an investment of Rs 5 billion over three years to charge up the business. “The minimum we will be pumping in this fiscal is Rs 600 million. But we are working on two models and if we are able to push digitalisation in a big way, we will actually be investing Rs 1.3 billion this year,” says Essel Group CEO of corporate strategy and finance Rajiv Garg.

    After Delhi, a digital headend is being set up in Mumbai, a lucrative market where WWIL currently has a small presence. Kolkata, Bangalore and Hyderabad are some other cities which will also inhabit the digital map.

    That does not mean that analogue expansion will be abandoned. WWIL is best poised to take up this role as, with a huge pile up of Zee channels, there are broadcasting interests to protect in an environment where cable bandwidth is choked. Siticable (earlier name of Zee‘s cable company), in fact, swung into action last year to snap up RPG-promoted Indian Cable Net, the biggest MSO in Kolkata. Spoiling Kalanithi Maran‘s SCV plans, the acquisition established Siticable as the leading MSO with a market share of over 60 per cent.

    Siticable has also taken on lease two prominent cable networks of Bangalore, Ice Network and Atria Network. In Hyderabad talks with Maran to tie up against Hathway Cable & Datacom were initiated but failed. Expansion through affiliation schemes to existing cable networks is also much on the agenda.

    By aggressively pursuing such plans, Chandra feels his cable business is sure to find a pot of gold. He has put WWIL‘s valuation in the region of $800-900 million (Rs 36-40.5 billion).

    Just over six years back, Chandra had bought out News Corp‘s 50 per cent stake of Siticable at a valuation of Rs 15 billion. So how does he arrive at such a steep rise in valuation now?

    The calculation runs somewhat like this: Siticable gets paid for a million homes which, according to Chandra, can attract a valuation of $500 (Rs 22,500) per subscriber. For the balance 5.8 million subscribers (for which Siticable is not paid), he puts a value of $50 (Rs 2,250) per subscriber, taking the total worth of the network to around $800 million.

    Since the buyout in 1999, Chandra believes a turnaround in valuations is possible for two basic reasons: conditional access system (CAS), which will ensure rollout of digital cable TV in the country; and potential of cable to get into the arena of triple play convergence – voice, data and video.
     

    “We are bullish about our cable business. We can attract investors in our distribution businesses in cable and direct-to-home (DTH),” Chandra had told Indiantelevision.com soon after announcing de-merger of Zee Telefilms into four individual entities.

    On annual revenue of Rs 1.5 billion, investors have to really bet their money on future earnings of the cable industry. The ARPU is around $3.5 a month, meaning a massive scale up has to take place.

    A question that analysts ask is: how does he put a value of $50 for the 5.8 million subscribers which WWIL is not paid for?

    A research firm has put the enterprise value (EV) of WWIL at $670 million (Rs 30.15 billion). This is based on EV per subscriber of $100 (with 6.7 million subscribers).

    Traditional cable valuations have been high but not at the level Chandra is looking at. Hathway was valued at $225 million and Star took a 26 per cent stake for $75 million, paying for a presence in distribution after exiting from Siticable and hype on IP-driven content. Even after adding size to the network, digital cable to a small extent and broadband growth, analysts put Hathway‘s current valuation at $400-500 million. Hinduja-owned Incablenet has also got on Intel and Kudelski to invest at huge valuations, but these have been small stakes in the company.

    What has changed this time, though, is CAS. This changes the business model of MSOs as it gives them direct control of the last mile subscribers.

    For getting an investor at the valuation that Chandra wants, WWIL will have to get in digital cable. Besides, it needs to have more control over the LMOs. The pot of gold, after all, resides in the last-mile system. CAS, or addressability, will instantly ignite valuations when it comes, but at the moment it looks some distance away.

    Chandra‘s corporate restructuring, however, has come at the right time. Telecom majors like Reliance Infocomm are feeling the need of getting access to the last mile through the chain of cable operators for rollout of IPTV. And, if CAS is mandated, international players like Liberty and Comcast will be keen to invest into the existing MSOs as an entry strategy. Private equity investors will also find cable worth putting their bets on.

    WWIL CEO J S Kohli

    Some investment bankers feel Hathway is handicapped in a way as, with Star as a 26 per cent partner, the MSO will find it difficult to woo in strategic investors. Even getting in private equity participation will require the approval of Star. Incablenet, on the other hand, may find reason to opt only for a strategic investor as it does not have any broadcast ownership.

    Chandra can find a business case in expanding analogue business, particularly in territories where it can rake in carriage fees from broadcasters, with the strategy of putting digital later on the platform. In this arena, WWIL can be more aggressive than rival networks Incablenet and Hathway and may not even face competition from them. For Incablenet, the focus will be on converting its existing network into digital cable. As for Hathway, future expansion strategies will depend on how much Star is prepared to invest to support these plans. With Tata Sky, Star also has an interest in promoting its DTH business.

    The tough question is: where and how can WWIL find the space to expand its footprint?

    In the southern region, Tamil Nadu and Kerala will be impossibly tough territories to crack with Maran‘s SCV and Rajan Raheja‘s Asianet Satellite Communications Ltd. having a dominating presence. As for Andhra Pradesh, WWIL will have to regain lost ground in Hyderabad where it has not been getting signals from Star and Sony-Discovery bouquets after Hathway was appointed as distributor of these channels. Karnataka is a different story as WWIL has a sizeable presence in Bangalore, though it is yet to roll out digital services.

    “We are plotting plans to revive our network in Andhra Pradesh. We will soon have a strategy in place,” says a Siticable joint venture partner in Hyderabad.

    In Madhya Pradesh, the main markets of Bhopal and Indore are dominated by Bhaskar Multi Net Ltd, promoted by print media giant Bhaskar group. Rajasthan Patrika owners have also diversified into cable. Though Kolkata is under the grip of WWIL, it will be difficult to extend the footprint in the eastern region. Orissa is dominated by Ortel and the other markets may not be attractive.

    WWIL has scope to expand in the smaller towns of western and northern India where it already has a well spread out presence. “It is nice to talk of expansion, but the market reality is different. In Karnataka there is scope to expand but ARPUs are low. It is also difficult to get carriage fees in the southern states where there is no appetite for Hindi content. WWIL can spread its wings in the northern and western regions but has to be careful if it wants to step into non paying and unstable markets,” says a trade analyst.

    The main challenge is to gain market share in Mumbai and Delhi. “WWIL will have to start a war in Mumbai and Delhi by dropping feeder rates to poach distributors and local operators. These will be two big digital markets. If WWIL goes on the offensive, we may have a land grab like situation,” says the analyst.

    Some analysts feel WWIL will have a distinct advantage in case of a fast digital rollout growth. “They have the widest presence and have the largest cable network in the country. They can take advantage of the digital environment and launch a headend-in-the-sky (HITS) platform,” says a market analyst.

    What Chandra needs is to pump in money. As the ideal debt-equity ratio for WWIL is 1:1, getting an investor in would help though it is not imperative. “The net worth of the company currently is not that strong to support that size od debt. We are, after all, planing to invest Rs 5 billion to expand the business,” says Garg.

    Trust the maverick Chandra to make the right move at the opportune moment. Unlike in 2000, Chandra has one advantage in roping in an investor this time. With WWIL getting listed, the piece of cable business in his media empire can be an attractive buy.

  • Soccer fever: Zee Sports sets itself ‘Goal 2010’ with AIFF

    Soccer fever: Zee Sports sets itself ‘Goal 2010’ with AIFF

    MUMBAI: Just imagine! With football fever spreading across the country thanks to the football World Cup, Zee Sports has set itself an ambitious target.

    Zee Sports and the All India football federation (AIFF) are looking to spread the popularity of football over the next four years. The two parties have announced a visionary project Goal 2010.

    The ultimate aim is to see India play in the soccer World Cup in 2010 in South Africa. Hence the tagline Just Imagine! The two parties will have public relations, youth outreach, training and marketing activities. The first step in the long journey will be a three week long Soccer Carnival in 11 cities including Goa, Mumbai and Delhi. The carnival kicked off in Chandigarh on Monday.

    Elaborating further on the initiative Zee Sports business head Himanshu Mody said, “Football is an international sport for which there is a vast following among the masses in India. We have put in lot of hard work to present Indian Football in a high quality format at viewer friendly times with in depth analysis.

    “That football has entered a new level has become obvious with the strong response we have received from fans and the corporates in the last one-year. Goal 2010 is an assertion of our commitment to make football as the most watched and played sport in the country. We believe that this project will help Indian football make a place for itself in world football.”

    The channel notes that the level of interest in the ongoing soccer World Cup shows on one level that the interest in the game is alive and well. At the same time the poor standard exhibited by the Indian football team in the past few decades is responsible for the domestic clubs and national team’s performances not being followed. The channel rightly notes that should India take part in the soccer World Cup in 2010 interest will skyrocket.

    The parties are looking to take advantage of the rise of interest in football in the public’s consciousness and build the players, leagues and clubs on the plank of “Support your team and it’s player’s in their crusade for the next World Cup”. The Goal 2010 project will encompass all activities undertaken by Zee and AIFF in their preparation to get India to South Africa in 2010.

    Activity Plan: The earlier mentioned carnival will be in the form of roadshows. For three weeks they will travel to Delhi, Mumbai, Bangalore, Hyderabad, Bangalore, Pune, Lucknow, Chandigarh, Jaipur and Kolkata. The roadshows will have branding, MC, music, Zeebras and a roll of Canvas on which the channel will make Indians pledge their support to Indian Football’s World Cup 2010 campaign. The promoters will drive traffic to this Graffiti wall.

    In the morning, the channel shall park outside a school or academy to rally student support. In the evening, the channel will cover public parks and the main market areas. There will also be a giant replica of the Fifa World Cup. The channel is hoping that this will instill dreams in Indians that just like cricket their football team too can do their country proud on the global stage.

    During the three-week period in each city the road show will last for three days and will visit various hip and happening locations in each place. The aim is to create fan awareness about different facets of Indian Football, which includes various tournaments and leagues, football players, clubs, legends of Indian football, etc. Besides providing an opportunity to fans to know about Indian football, the carnival will also host a variety of interactive games and contests where they will have the opportunity to win Zee Sports merchandise.

    The carnival will first visit Chandigarh with the football cheerleading squad, the Zeebras. A huge inflatable football will be placed at a prominent indoor location in each city and will remain there for six months. People can come and pledge their support to the Indian Football’s World Cup campaign. All signatures collected during the campaign will be presented to Fifa president Sepp Blatter in October, during his visit here and his support for India’s dream will be sought.

    Zee Sports VP marketing Gaurav Seth says that later in the year the channel and AIFF will conduct inter school competitions where probables for the under 17 and under 19 teams will be considered. The Japanese team comes down in October to play in qualifying matches for next year’s Asia Cup in Malaysia. If the Indian team is able to qualify for the Asia Cup then that will give them excellent practice ahead of the World Cup qualifiers which start in 2008.

    Zee Sports and the AIFF will also conduct clinics for coaches and teachers. This is important in growing football at the grasroots level. A couple of weeks ago, AIFF, with advice from Zee Sports, had chosen Bob Houghton as the Indian football team’s coach. Houghton has in the past helped take China to the soccer World Cup. Seth is hopeful that with the carnival Indian soccer fans will not forget about the sport once the World Cup (which is airing on rival ESPN) ends.

    Zee Sports had introduced the Zeebras as their mascots of promoting Indian football. Dressed in funky outfits, the Zeebras will perform on hit tunes during the carnival.

    Zee Sports had signed a 10 year deal with the AIFF last year. The channel says that since then it has taken prudent steps to popularise Indian Football. For the first time, 100 matches of Indian football comprising of matches from National Football League, Federation Cup and Santosh Trophy were shown live.

    Zee Sports flew down international experts in football production for the telecast of Indian Football. This included directors, sound engineers, visual graphic specialists from the UK, South Africa and South East Asia. Using a 12-camera setup to cover the action from the field, Zee Sports ensured every shot and dribble was viewed from multiple angles ensuring exciting viewing to its consumers.

    The coverage involved more replays, international commentators, new graphic look and various in studios programming leading to the build up. For the 10th edition of ONGC Cup, two world-class units simultaneously broadcast the matches from Kolkata, Mumbai and Goa. British Match director David Horridge, produced the telecast.

    Horridge is involved in directing Champions League matches and is now Germany to work for Fifa on the World Cup coverage. The telecast package will include preview and review shows, half time match analysis and various studio programming. 

    In line with Zee Sports promise to deliver international quality coverage of Indian football, John Helm and former England International player Russell Osman were flown from England for commentary for all the three major domestic football tournament. Assisting them were Zee Sports commentator Debayan and football expert Noel da Lima Leitao.

  • David Gale is MTV US executive VP, new media, specialty film content

    David Gale is MTV US executive VP, new media, specialty film content

    MUMBAI: David Gale has been named to the newly created position of MTV US executive VP, new media and specialty film content.

    In this new role, Gale will find, develop, acquire and produce long-form narrative content and branded films for all platforms including online, wireless, theatrical, DVD and VOD.

    As the technology, delivery platforms and audience experiences for films continue to expand Gale will help lead MTV’s efforts in finding new, cutting-edge talent to bring a diverse slate of content to audiences, from branded films and long-form narrative productions, to documentaries and more.

    In addition to continuing to work with MTV, he will bring projects to all global MTVN brands, including Comedy Central, Nickelodeon, VH1, Logo and CMT, coordinating his efforts with their production teams. In this new position, Gale will will also continue to run the day-to-day operations of MTV Films until his successor is named.

    Gale’s new role helps fulfill a key component of MTV’s global digital strategy — to combine its mission to discover, produce and showcase unique new talent and entertainment, with its continued goal of launching audience-engaging platforms such as MTV’s Overdrive, Comedy Central’s Mother Load, VH1’s VSpot, Nickelodeon’s Turbo Nick, countless 3G wireless channels and MTV Networks’ recently launched digital music service URGE.

    MTV chairman Judy McGrath says, “Our amplified efforts in creating visually rich experiences on television, as well as on computers, wireless screens and in theaters, allow us to personalize each entertainment experience our audience engages in. With David‘s new role, we’re looking to launch a new paradigm in finding, producing and distributing long-form digital content across the globe.”

    In addition to coordinating with each of the MTV Networks’ International Brand and Group Leaders (MTVN Entertainment president Doug Herzog, MTVN International president Bill Roedy and Nickelodeon & MTVN Kids & Family Group president Cyma Zarghami) for new content under the specific brands, Gale will also work closely with key executives for digital platforms on the release of film and other original long-form projects.

    Gale will also continue to work with the Paramount specialty film divisions, Vantage and Classics, to seek out the type of unique and original feature films that have made the MTV brands so distinctive in the entertainment industry.

  • Visits grow for Fifa fan fest venues

    Visits grow for Fifa fan fest venues

    MUMBAI: Since the 2006 soccer World Cup began on 9 June, around 11 million fans have celebrated at the official ‘Fan Fest’ sites in Germany in a peaceful, joyful and colourful manner and in keeping with the official slogan, A Time to Make Friends.

    Football’s governing body Fifa says that the popularity of the Fan Fest sites in all 12 host cities has exceeded its expectations. Fifa president Joseph S. Blatter says, “We thought that around eight million fans would turn up over the course of the tournament, but that mark was easily surpassed at the halfway point. The host cities and Fifa wanted to do something for the fans without tickets.

    “I can only congratulate the 12 host cities on these wonderful Fan Fest parties, which have taken the authentic stadium atmosphere into the city centres. The 18th Fifa World Cup will long be remembered for the unique sense of excitement and passion it has generated”.

    Prime sites in the 12 host cities were chosen as “second venues” in the official World Cup design. Entry into the Fan Fest sites is free of charge, and as well as broadcasting all matches live on giant screens, the Fan Fest sites offer various other events that differ from region to region.

    Berlin World Cup office head Jürgen Kiessling says, “Happiness has spread throughout the 12 host cities. We never expected such a sensational response. The whole world has seen some fantastic images from the host cities, which have joined together in this way for the first ever time, and with FIFA, they have created something unique.”

    So far, 5,500 national and international media representatives have reported on the Fan Fest sites, with some TV channels as well as official German broadcaster ARD often reporting live from the sites themselves.

    The Fan Fest system was developed by the 12 host cities and Fifa with the support of the local organising committee over a period of two years, thereby creating the biggest ever football party in Germany. The Fan Fest parties are organised by the cities themselves, together with regional organisers whose untiring efforts have helped to make them such a huge success.

    Fifa is responsible for coordinating the entire operation, as well as for providing the basic infrastructure such as the giant screens, stages, sound, lighting and decoration of a total of 20,000 square metres in the official World Cup design. The Fan Fest system has received financial support from four Fifa partners: Coca-Cola, Hyundai, MasterCard and Toshiba.

    Huge logistical operations have provided the foundations for the success. Around, 17,000 people have ensured that everything has run smoothly on the 14 stages and 34 giant screens, which have been provided by another FIFA Partner, Philips. Local authorities have developed comprehensive security measures, which have been implemented without any major incidents.

    The local organising committee’s “Fan Embassies” also provide a first point of contact for the fans. TV rights holder Infront has provided the broadcasting licences free of charge. The biggest football party of all time is now ready for the second half.

  • David Gale is MTV US executive VP, new media, specialty film content

    MUMBAI: David Gale has been named to the newly created position of MTV US executive VP, new media and specialty film content.


    In this new role, Gale will find, develop, acquire and produce long-form narrative content and branded films for all platforms including online, wireless, theatrical, DVD and VOD.


    As the technology, delivery platforms and audience experiences for films continue to expand Gale will help lead MTV‘s efforts in finding new, cutting-edge talent to bring a diverse slate of content to audiences, from branded films and long-form narrative productions, to documentaries and more.


    In addition to continuing to work with MTV, he will bring projects to all global MTVN brands, including Comedy Central, Nickelodeon, VH1, Logo and CMT, coordinating his efforts with their production teams. In this new position, Gale will will also continue to run the day-to-day operations of MTV Films until his successor is named.


    Gale’s new role helps fulfill a key component of MTV‘s global digital strategy — to combine its mission to discover, produce and showcase unique new talent and entertainment, with its continued goal of launching audience-engaging platforms such as MTV’s Overdrive, Comedy Central’s Mother Load, VH1‘s VSpot, Nickelodeon‘s Turbo Nick, countless 3G wireless channels and MTV Networks‘ recently launched digital music service URGE.


    MTV chairman Judy McGrath says, “Our amplified efforts in creating visually rich experiences on television, as well as on computers, wireless screens and in theaters, allow us to personalize each entertainment experience our audience engages in. With David‘s new role, we’re looking to launch a new paradigm in finding, producing and distributing long-form digital content across the globe.”


    In addition to coordinating with each of the MTV Networks’ International Brand and Group Leaders (MTVN Entertainment president Doug Herzog, MTVN International president Bill Roedy and Nickelodeon & MTVN Kids & Family Group president Cyma Zarghami) for new content under the specific brands, Gale will also work closely with key executives for digital platforms on the release of film and other original long-form projects.


    Gale will also continue to work with the Paramount specialty film divisions, Vantage and Classics, to seek out the type of unique and original feature films that have made the MTV brands so distinctive in the entertainment industry.

  • NBC, YouTube in strategic partnership













    MUMBAI: US broadcaster NBC and online video destination YouTube have announced a strategic partnership that will combine NBC‘s programming with YouTube‘s vast audience to enhance the entertainment experience on YouTube while engaging viewers in new ways to promote NBC‘s Fall program lineup and other preferred shows over the next year.


    The agreement also includes an integrated, cross-promotional advertising relationship on the YouTube service and significant on-air promotion provided by NBC.

     

    NBC will create an official NBC Channel on YouTube to house its Fall Preview area with exclusive clips to promote NBC‘s The Office. In addition, over the next year, NBC will upload several video presentations and longform promos per week to the NBC Channel on YouTube from primetime and late-night programs like Saturday Night Live, The Office, and The Tonight Show with Jay Leno. YouTube will also promote NBC‘s videos throughout the site.


    NBC Universal Television Group chief marketing officer John Miller says, “The YouTube and NBC partnership symbolises what can happen when traditional media companies and new media companies find common ground. YouTube is the perfect online media partner to promote NBC‘s marquee entertainment to their audience and explore new and creative ways to harness the power of viral video in a manner that respects copyrights. We applaud YouTube for their continued willingness to work with us to remove any unauthorised NBC content and protect our copyrighted material. We are thrilled to be partnering with this forward-thinking company.”

     

    YouTube co-founder and CEO Chad Hurley says, “We are delighted to work with NBC on an official basis. Bringing more entertaining and exclusive content to YouTube helps further our goal of providing the best video entertainment experience on the Internet. This partnership provides greater visibility and access to both NBC and YouTube‘s audiences, providing both companies with new outlets for growth and opportunity.”


    Additionally, NBC will launch a contest for its comedy The Office where people can submit their own creative 20-second promotional videos to NBC‘s YouTube Group (www.youtube.com/theoffice). NBC will publicise the campaign on air regularly during the first three weeks of the contest, encouraging YouTube users to enter. User-generated videos must be compelling and entertaining and create interest for potential viewers to watch “The Office.” Examples can be seen in the NBC YouTube Group.


    The contest runs till 21 July 2006. The winning video will air within the network broadcast of The Office during August. NBC will also offer a ‘how-to‘ video featuring writer-producer Bill Lowery, who normally writes and produces all the network‘s promos for The Office.


    Miller adds, “We are excited about customising the NBC channel and sharing with our subscribers all the entertaining promotional content we are offering to encourage them to watch our Fall line-up and other programmes. With the contest, we want to have some fun and allow an artistic avenue for fans of The Office. We know they have a lot of great ideas that deserve to be shared and we can‘t wait to see what they upload to YouTube.”


    People now watch more than 70 million videos per day on YouTube, and it is the 17th most trafficked Web site in the world.

  • NBC, YouTube in strategic partnership

    NBC, YouTube in strategic partnership

    MUMBAI: US broadcaster NBC and online video destination YouTube have announced a strategic partnership that will combine NBC’s programming with YouTube’s vast audience to enhance the entertainment experience on YouTube while engaging viewers in new ways to promote NBC’s Fall program lineup and other preferred shows over the next year.

    The agreement also includes an integrated, cross-promotional advertising relationship on the YouTube service and significant on-air promotion provided by NBC.

    NBC will create an official NBC Channel on YouTube to house its Fall Preview area with exclusive clips to promote NBC’s The Office. In addition, over the next year, NBC will upload several video presentations and longform promos per week to the NBC Channel on YouTube from primetime and late-night programs like Saturday Night Live, The Office, and The Tonight Show with Jay Leno. YouTube will also promote NBC’s videos throughout the site.

    NBC Universal Television Group chief marketing officer John Miller says, “The YouTube and NBC partnership symbolises what can happen when traditional media companies and new media companies find common ground. YouTube is the perfect online media partner to promote NBC’s marquee entertainment to their audience and explore new and creative ways to harness the power of viral video in a manner that respects copyrights. We applaud YouTube for their continued willingness to work with us to remove any unauthorised NBC content and protect our copyrighted material. We are thrilled to be partnering with this forward-thinking company.”

    YouTube co-founder and CEO Chad Hurley says, “We are delighted to work with NBC on an official basis. Bringing more entertaining and exclusive content to YouTube helps further our goal of providing the best video entertainment experience on the Internet. This partnership provides greater visibility and access to both NBC and YouTube’s audiences, providing both companies with new outlets for growth and opportunity.”

    Additionally, NBC will launch a contest for its comedy The Office where people can submit their own creative 20-second promotional videos to NBC’s YouTube Group (www.youtube.com/theoffice). NBC will publicise the campaign on air regularly during the first three weeks of the contest, encouraging YouTube users to enter. User-generated videos must be compelling and entertaining and create interest for potential viewers to watch “The Office.” Examples can be seen in the NBC YouTube Group.

    The contest runs till 21 July 2006. The winning video will air within the network broadcast of The Office during August. NBC will also offer a ‘how-to’ video featuring writer-producer Bill Lowery, who normally writes and produces all the network’s promos for The Office.

    Miller adds, “We are excited about customising the NBC channel and sharing with our subscribers all the entertaining promotional content we are offering to encourage them to watch our Fall line-up and other programmes. With the contest, we want to have some fun and allow an artistic avenue for fans of The Office. We know they have a lot of great ideas that deserve to be shared and we can’t wait to see what they upload to YouTube.”

    People now watch more than 70 million videos per day on YouTube, and it is the 17th most trafficked Web site in the world.

  • Zoya Trunova is bbc russian.com editor

    Zoya Trunova is bbc russian.com editor

    MUMBAI: BBC World Service has appointed Zoya Trunova as the online editor for its Russian service. She will be heading a team of journalists, working to further develop and enhance the popular Russian-language website bbcrussian.com.

    A graduate of the Faculty of Journalism at Moscow State University, Trunova started her journalistic career in 1992, first as a stringer for Reuters Television, then as a freelance field producer in the Caucasus, Ukraine, Russia and elsewhere in the Former Soviet Union (FSU).

    She says, “The BBC team has worked hard to establish bbcrussian.com as a leading source of independent and impartial online news accessed by Russian-speakers around the world. I am looking forward to helping build on that success. As the number and sophistication of Russian-language online resources grow by the day, I am also inspired by the challenges ahead.”

  • BBC Worldwide’s profits rise 62 per cent

    BBC Worldwide’s profits rise 62 per cent

    MUMBAI: BBC Worldwide, UK pubcaster BBC’s commercial arm, has published its annual review for 2005/2006 and announced record profits of £89.4 million for 2005/2006, a year on year increase of 62 per cent, with sales up by 11 per cent to £784.4 million.

    The increase in overall profits was achieved by a combination of trading and efficiency improvements across the business and by selling, closing or turning around loss-making operations.

    In 2003/2004, the company produced a profit of £37 million. In 2004/2005, this rose 50 per cent to £55 million. This year, it exceeds £89 million – a 144 per cent increase from two years ago and 62 per cent up on last year. Across the business, the return on sales was 10 per cent in the year and the EBITDA margin was 22 per cent. For the first time, over 50 per cent of revenue came from overseas sales.

    The underlying profit, excluding one-offs, disposals, restructuring and legal costs, is £92.1 milion, up from £53.3 million in 2004/05, and an increase of 73 per cent in the year. This figure has also doubled over two years.

    Following a strategic review and reorganisation, the company is now focused on profit and growth. It operates seven businesses: global channels, global TV sales, magazines, home entertainment, children’s and digital media, plus the recently created content and production business.

    Both through its own operations and via partnerships and joint ventures, BBC Worldwide seeks to drive commercial benefit from rights and content on behalf of the BBC and other UK rights holders. In the UK, its products and services help to extend audiences’ appreciation of BBC programmes. Internationally the company promotes the best of British talent and culture across a range of media.

    BBC Worldwide CEO John Smith said, “It has been an outstanding year. Our turnaround and repositioning strategy has enabled us to exceed our targets, streamline the business and prepare for significant growth both in the UK and abroad. 2006/2007 will see us deepen our commitment to digital media with the proposed development of the commercial iPlayer and bbc.com, the digitising of the archive and more VoD deals. We will continue to invest in acquiring rights and maximising returns across all media. We will also be rolling out new channels and content and production strategies later this year.”

    BBC DG Mark Thompson says, “We set BBC Worldwide an ambitious target to double profits over two years, and I’m delighted they’ve managed to exceed it. The ongoing work in focussing the business and increasing efficiency is drawing direct investment back into programmes and services for UK licence payers.”

    Highlights of the year include:

    Global Channels
    Sales £165.4m – up 18% from £140.6m. 
    Profit £6.9m – up 73% from £4.0m.

    UK’s No 1 TV Channel operator with 18 channels including ten in the UK held in joint venture with Flextech (UKTV) Channels will be an important growth area in the future.
     
    Channels reach 288 million homes globally – up from 245 million last year; BBC America reached target of 45 million US homes and is now in half cable homes in USA. Ratings rising 20 per cent in primetime 
    UKTV delivered £4 million dividend to BBC Worldwide, over 90% up on 2004/2005.
     
    Darren Childs who was earlier previously Sony Pictures Television International MD was recruited to head up business. 

    BBC Japan ceased broadcasting, but BBC Prime launched in South Korea. 
    2005/2006 was an intense period of assessment and review. 

    Global TV Sales

    Sales £173.1m – up 9% from £158.8m.

    Profit £31.7m – up 3% from £30.9m.

    No 1 Exporter of television programmes.

    30th Year of BBC Showcase where 500 broadcast buyers attend to browse and buy from a catalogue of some 40,000 TV hours. Second year of BBC Showcase in Latin America.

    It re-focussed strategy into ’emerging’ and ‘developed’ markets. Growth expected in certain territories – India, China, Latin America, Russia and Poland.

    New contemporary drama re-ignites market for British shows.

    Seven pitches for Indian FM radio licences were won with partner Mid Day Multimedia.

    It also distributes Indie-produced programmes commissioned by ITV, C4 and Five.

    Content and Production

    Sales £36.1m – up 173% from £13.2m.

    Profit £3.2m – up 220% from £1.0m.

    New division, headed up by director Wayne Garvie (joined from BBC Entertainment), comprising the Independent Unit, Investment Unit, format sales and local production.

    Voted No 1 Distributor of Choice by UK Independent Producers (Broadcast, Sept 2005).

    Production office opened in Los Angeles in 2005.

    Dancing with the Stars – the international format for Strictly Come Dancing – has now been sold in 27 countries and won several awards including the Broadcast award for Best International Programme Sales. It is ABC’s top rating entertainment show (US) and on Series 5 in Australia. Following success of Deep Blue, the film Earth is now in development with BBC Production.

    Magazines

    Sales £163.7m – down 3% from £169.4m.

    Profit £19.3m – down 12% from £22.0m.

    UK’s third largest consumer magazine publisher, sold over 90 million magazines in 2005/06 UK’s third largest consumer magazine publisher, selling over 90m magazines in 2005/06 – ie- 170 every minute.

    One in four adults reads a BBC title every month.

    Profit shows an apparent reduction on 2004/05, but that year included a number of one-off items such as the sale of Eve magazine, which if excluded, leaves a year-on-year improvement of 2.5%.

    Post year-end, 61% of specialist publishing company Origin (and the non-BBC titles it publishes) was sold to a management buy-out team. BBC Worldwide will retain a minority stake for a period of time as part of a staged exit.

    CBeebies Weekly and BBC Sky at Night launched (and Doctor Who Adventures and Amy just after year end).

    Radio Times is the UK’s biggest-selling premium-priced listings magazine and No 1 magazine brand.

    Subscriptions are approaching 600,000 and a key area of growth. Dovetail joint venture formed to grow fulfilment business.

    International activity grew: Top Gear now published in 30 countries and international licensing contracts increased to nearly 30.

    Joint venture with The Times of India, Worldwide Media, now one of India’s largest magazine companies; Top Gear magazine launched there in 2005/2006.

    Home Entertainment

    Sales £175.3m – up 9% from £160.8m.

    Profit £25.8m – up 197% from £8.7m.

    First full trading year for 2 entertain – a joint venture with Woolworths plc. Sales of £115m delivering £25.8m profit, largely on DVD sales (also from music and film production). No 1 UK-owned DVD/Video distributor.

          

  • NBC to celebrate 80th birthday of legendary singer Tony Bennett

    NBC to celebrate 80th birthday of legendary singer Tony Bennett

    MUMBAI: In a one-hour special, US broadcaster NBC will celebrate the 80th birthday of the legendary singer Tony Bennett.

    The special Tony Bennett: An American Classic airs later this year.

    The special, sponsored by Target, showcases the Grammy and Emmy Award-winning singer along with a myriad of superstars who perform duets from his upcoming album Tony Bennett Duets/An American Classic. 

    The special will take viewers on a musical journey through the renowned singer’s life. Set amongst the backdrop of different eras from Bennett’s career, he performs his most memorable songs with popular artists. Bennett performs Rags to Riches with Elton John, The Best Is Yet to Come with Diana Krall; For Once in My Life with Stevie Wonder; Because of You with K.D. Lang and trumpeter Chris Botti; and Sing You Sinners with John Legend. Additional participants will be announced at a later date.