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  • HBO joins the English movie channel bandwagon

    HBO joins the English movie channel bandwagon

    Home Box Office (HBO) is all set to launch on 22 March, 2000. The channel which boasts to be the first one on cable television when it started in 1972 claims to be the leader in a lot of areas not only in programming but also technical, promises the viewer a variety of entertainment right from blockbuster hollywood movies to a wide array of entertainment including various shows mini-series and concerts. The channel will follow the self-censorship mode and won’t feature “after dark” films.

    On gathering eyeballs, Anshuman Misra, Managing Director, Turner International India, says “Content and programming will drive the viewers from our competing channels”.

    HBO which reaches over 47 million viewers in 45 countries is confident of creating a bang in India. The channel targets the urban and the semi-urban viewers which amounts to 15 million subscribers though the management is uncertain about the time frame to reach such a vast amount of viewers. The initial target is: five million homes in the next six to seven months. The encrypted channel beaming off PanAmSat-4, will remain advertisement free for around six months and thus is not perturbed about the TRPs its programming generates.

    The average per subscriber rate is Rs 6.00 but that will differ from one cable operator to another. The Sceintific Atlanta PowerVu decoders are being place with cable operators on payment of a deposit of Rs 10,000.

    HBO which lacks distribution network will face a tough task of reaching the desired penetration. A distribution team of 20, along with independent distributors, is working on taking the channel further into urban homes.

    Misra expects HBO to contribute two-thirds of Turner’s subscription revenues when in full steam. It might well get that, but the channel will have a tough battle on its hands what with Star Movies all the rage and Zee Movies being launched yesterday as a free service. The additional advantage that Zee TV has is that it owns the cable TV netowrk Siticable. The third major rival is the local cable channel – airing pirated English movies – operated by the cable operator for his subscribers.

    Misra is not worried however. “Our content will rule,” says Misra.

  • Myriad channel universe will require content delivery to many touch points

    Myriad channel universe will require content delivery to many touch points

    MUMBAI: Imagine a digital world where new broadband networks scale up the present 500 channel universe to one that is 500,000 or even five million strong.

    An indication of the sheer breadth of possibilities (some would say frightening) that the brave new digital future is throwing up for those in the broadcasting business.

    It was a point that was expanded on by Turner International Asia Pacific president Stephen Marcopoto, in one of today’s plenary sessions – Digital Entertainment living.

    Said Marcopoto, “In order to reach this new consumer model we need to produce and deliver content to as many of these gadgets and technological touch points as possible. More than 30 million hours of TV are produced each year but we face the end of appointment viewing as scheduled broadcast channels and distribution are displaced by a choice of millions of download and on-demand programs. The pressure on content providers to innovate is therefore greater than ever as consumption moves from passive viewing by a large mass audience to the active engagement of individual consumers.”

    One of the biggest challenges could be on advertising models, Marcopoto said. “In the world of mobisodes and iPod downloads, the revenue models risk being turned upside down. The argument to advertisers is that these ‘third screen’ platforms reach people who would not normally have watched the show on air in the first place, so the advertisers don’t lose consumption. But in reality it’s way too soon to know the true impact of this technology on revenue streams and distribution. The hope is that through making popular shows convenient and available at a fair price, content owners should be able to avoid the savagery the music industry suffered.”

    The next huge challenge the industry faces is in the changing economics of rights ownership. Marcopoto stressed the “absolutely fundamental need that digital rights management (DRM) is enforced. “We know the case for DRM – without a strong system in place to ensure only paying consumers can access media, piracy will continue to run rampant and cut drastically into profits for producers and distributors. And, with declining sales, creative input will also drop and the overall quality of media produce risks decline. But potential solutions are out there and closed network providers like Kontiki have developed deals with players like AOL to deliver DRM protected content efficiently, with no more risk to piracy than a normal download,” he opined.

    Marcopoto finished his presentation with a quote from Mark Pesce, the head of Future STR, a consultancy based in Sydney. “The ‘Three Fs’ of finding, filtering and forwarding (content)—scaled up to the swarm of a billion internet users, describe the network media world. How the media industries of the present day—predicated on mass communication to mass audiences—negotiate the transition into a world of microaudiences, each fiercely guarded by an army of ever-vigilant nanoexperts, remains an open question.”

  • Another webcasting company knocks WWW doors

    Another webcasting company knocks WWW doors

    Mumbai based broadband company Skynet Web TV Ltd is set to tap the Indian bourses with an Initial Public Offering (IPO) of the size of Rs 21 billion. Each equity share of the face value of Rs 10 would be priced at a premium of Rs 30 each. Aryaman Financial will be the lead manager for the issue.

    The company headquartered in Mulund, the central suburb of Mumbai plans to offer broadband services through its entertainment portal on the Net and software services. The entertainment portal will be designed to supply rich media content (streaming technology) to netizens utilising both narrow and broadband connections. The site contains free and paid services. The free services consist of chat, e-mail, finance, classifieds, shopping & travel and paid service will consist webcasting movies and television serials.

    The company targets the NRI community interested in viewing Indian movies and those who do not have access to cinema houses or other sources to see latest Hindi or other regional Indian language movies. The company will acquire rights for Hindi movies and television serials for webcasting. The streaming content can be viewed through 28.8 kbps and 56.6 kbps dial-up connections, DSL connections and Internet-over-cable TV.

    The revenue model of the company comprises of a mix of ad revenues and subscription fees. The company will use the reputed international payment gateway Cyber Cash for clearing online transactions through credit cards. The company plans to charge an average US $ 5.00 per movie.

    The Net is being slowly flooded with webcasting portals. How many of them will survive? Where will all the content come from? Skynet Web TV Ltd might face a similar problem of acquiring quality content. But the company seems to be determined to make it big.

  • Visa official sponsor for ICC World Cup, Champions Trophy

    MUMBAI: Credit card major Visa International has been awarded the regional official sponsorship rights for the ICC Champions Trophy to be held in India in October 2006 and the ICC Cricket World Cup to be held in West Indies in March-April 2007.
     
     
    As regional official sponsor, Visa International will receive on-ground sponsorship benefits in the South Asia region including category exclusivity, branding and signage, tickets and hospitality, special events and programs, broadcast and media related benefits and other rights, benefits and protections.

    For this territory, Visa becomes the second after Indian Oil to get (by virtue of the oil major’s deal covering all broadcast territories globally) official sponsorship status. According to sources close to the developments, two more official sponsors are expected to be signed on for the south Asia region, which will take the number of official sponsors up to four.

    Before this deal, ICC had four official global partners in LG, Pepsi, Hutch and Hero Honda and two official sponsors Indian Oil and Cable & Wireless.

    The sponsorship deal with Visa was negotiated by Nimbus Sport, acting as worldwide exclusive marketing agency for Global Cricket Corporation (GCC), the commercial partner of the International Cricket Council (ICC).
     
    Visa International Asia Pacific EVP Marketing Rajiv Kapoor said that the company would be rolling out a series of campaigns, promotions and supporting marketing activities to make use of the occasion.

    “We plan to make the most of our sponsorship as our principal marketing platform for the next year, as we believe it will deliver incomparable exposure for the Visa products and services in the region. Visa is committed to this sponsorship and we are ,” Kapoor said.
     
    ICC president Ehsan Mani said, “Cricket’s ability to attract a world-renowned brand such as Visa to become an official sponsor is a demonstration of the game’s robust health and its global appeal. This agreement is excellent news for all concerned and we look forward to a long and mutually beneficial association with Visa.”
    GCC MD Ian Frykberg said, “We are delighted to welcome Visa to the family and have them add the ICC Cricket World Cup 2007 to its impressive list of major sports sponsorships.”

    Nimbus Sport CEO Digvijay Singh said, “This is the first time that a major payment card has been an ICC cricket sponsor and Nimbus is proud to have played a key role in securing this path-breaking new sponsorship”.

    Adds Visa International country manager Santanu Mukherjee, “We believe this is a great opportunity for Visa to enhance the visibility of our brand and cut across borders and boundaries. Visa has nearly 40 million cardholders in South Asia and we plan to reach out to them in unique ways to build on their passion for the game over the coming months.”
     
     

     

  • Internet ad revenues grow 30% to $12.5 billion in ’05 in US

    MUMBAI: Overall internet advertising revenues in the US for 2005 totalled $12.5 billion, a new annual record exceeding 2004 by 30 per cent, according to a survey done by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

    The report states that search, classifieds, display and rich media all continue to grow at a healthy rate. The Q4 2005 internet advertising revenues totalled a record $3.6 billion, representing a 34 per cent increase over same period in 2004.

    “Interactive Advertising continues to experience tremendous growth as marketers experience its overall effectiveness in building brands and delivering online and offline sales. We are confident that this growth trend will continue as more marketers find Interactive to be an imperative and additional platforms including broadband video, gaming, IPTV and others continue to emerge as real opportunities,” said Interactive Advertising Bureau CEO Greg Stuart.

    “The Internet continues to be a vibrant and ever-changing channel, providing advertisers with broad offerings that enable them to promote their brands using a highly cost effective platform. This year’s record figure of annual Internet advertising revenue demonstrates the enduring enthusiasm for the medium as a whole,” said PwC partner, assurance David Silverman.

    “Continued strong growth in online advertising documents that an increasing number of advertisers and marketers see the Internet is an essential brand-building component in their media planning. The Internet delivers the right audience at the right time, a winning combination for all types of marketers. We expect to see continued growth in Internet advertising spend,” added PwC director, advisory Peter Petrusky.

    Conducted by the New Media Group of PwC, the “Advertising Revenue Report” represents data from all companies that report meaningful online advertising revenues. The survey includes data concerning online advertising revenues from web sites, commercial online services, free e-mail providers and all other companies selling online advertising.

  • Ronald D’Mello appointed COO of UTV; Zarina Mehta is COO Hungama TV

    Mumbai: UTV Software Communications, India’s leading and most respected integrated media and entertainment companies announced that Mr. Ronald D’Mello, Director – Operations & Finance, will now take on the responsibilities of Chief Operating Officer of UTV Software Communications Ltd.

    In his new role, Mr. D’Mello will be fully responsible for the day to day operational management of the Company, including running of each of the profit centres as also all aspects of implementation, Finance, HR, Legal, cost management and business servicing. Mr. Ronnie Screwvala, CEO of UTV, will now focus on providing strategic direction in the areas of content development, revenue generation and new opportunities through organic and inorganic growth across all lines of businesses. Mr. Screwvala and Mr. D’Mello will work jointly on corporate strategic initiatives, investor management and business development.

    A professional Chartered Accountant, Mr. D’Mello has more than 15 years of post qualification experience in the manufacturing, hospitality and media industry and enjoys the distinction of being one of the longest serving finance professionals in the media industry. Associated with the industry since 1991, he has played a key role in its evolution and been an active participant in industry initiatives at various levels including State and Central Government. Mr. D’Mello joined UTV in 1992 and has played a crucial role in the Company’s evolution.

    In another development, Ms. Zarina Mehta, Founder Director of UTV and Head of Programming, Hungama TV, will now take on the responsibilities of Chief Operating Officer, Hungama TV. In her new role, Ms. Mehta will oversee all aspects of Channel operations and management.

    A graduate in Economics (Honours) from the Mumbai University, Ms. Mehta is one of the three founding members of the company. Over the last 15 years, she has been responsible for the start-up and creation of some of UTV’s major divisions and has produced over 3500 hours of high TRP, award-winning television programming in multiple languages. A multi-award-winning director of corporate documentaries with a passion for children’s television, her initial training was as a theatre actor, where she performed in several leading productions.

    Commenting on these developments, Mr. Ronnie Screwvala, CEO of UTV, says, “UTV is one of the largest fully integrated media companies in the region, and it is our relentless endeavour to ensure constant focus on our key business areas, with an eye to future opportunities. These new responsibilities for Ronald and Zarina will ensure that our current businesses continue to have a single-minded focus, while I can drive creative development, revenue maximization and new business opportunities.”

    About UTV:-
    Incorporated in 1990, UTV has today emerged as one of India’s leading and most respected integrated media and entertainment companies. From a Television Production house, it has grown into an integrated media house with interests in Television Content and Air-time Sales, Movie Production and Distribution, and Broadcasting through their group company United Home Entertainment, which recently launched Hungama TV. In fact, in the last 15 years UTV has established its presence across Asia for its creativity and professional approach to the business. Website: www.utvnet.com

    For further information please contact:-
    Purnima Subbiah / Pooja Nikam
    Good Relations (India) Pvt. Ltd, Mumbai
    Tel No: 022-23535971 / 77
    Mob: 9833100866
    Fax: (022) 3535980
    Email: purnimas@gri.co.in

  • IPTV still at seeding stage

    IPTV still at seeding stage

    MUMBAI: Even as the framework of the digital landscape is being drawn by the various industry stakeholders, the most prepared seem to be cable TV and direct-to-home (DTH) service providers.

    Telecom operators who have plans to offer IPTV are grappling with last mile and technology issues at this stage.

    IPTV is at the seeding stage and will take 1-2 years for a serious rollout in India, according to Bharti Tele-ventures new technologies head Sriram TV.

    “Broadband has just begun. IPTV can be used as one often acquisition tools for increasing broadband penetration,” Sriram said while speaking at FICCI-Frames 2006 on TV NexGen.

    Though IPTV still lacks large subscriber base across the world, the technology for its mass deployment is in place. Telecom giants like Verizon, British Telecom and SBC are in various stages of deployment.

    “IPTV is the horse that we are backing,” said Microsoft TV group product manager Hemang Mehta.

    Elaborating on the advantages of IPTV, Mehta said the delivery platform had the ability to offer personalised content. Unlike cable TV and direct-to-home (DTH), consumers could select devices rather than be forced to buy set-top boxes (STBs) from the service operators. “The next generation of TV sets will be enabled for IP and broadband. Consumers need not buy the STBs,” he pointed out.

    On being queried by Indiantelevision.com on whether IPTV STBs were expensive, Mehta said they were available at below $100.

    As for big daddy Reliance Infocomm, the bet is on mobile TV around which the digital story will ultimately converge. This was the view expressed by Reliance Entertainment president Rajesh Sawhney.

    Speaking at the session, HTMT executive vice president Ashok Mansukhani said cable TV was well geared to meet the challenge from DTH and IPTV with its digital service. “Cable TV will offer the lowest cost digital platform. It also has the ability to offer over 300 channels,” he pointed out.

    Zee Group vice chairman Jawahar Goel said new delivery platforms were emerging which would provide choice to consumers.

  • MIPTV day two to have keynotes by Burnett, Miller

    MIPTV day two to have keynotes by Burnett, Miller

    MUMBAI: One of the driving forces behind reality television and a visionary TV producer Mark Burnett and AOL chief Jonathan Miller headline the conference activities on the second day of MIPTV, alongside panels on on-demand viewing and Asian television trends.

    AOL chairman and CEO Miller will speak at 5 15 pm on 4 April. His keynote, The Internet and the Future of Television, will look at what effects new media will have on traditional viewing, and what AOL’s place is in this evolving landscape, using as a case study the Internet company’s coverage of Live 8.

    Immediately following Miller’s speech, at 5 50 pm Burnett will deliver The New Reality: Entertainment Everywhere, looking at what it takes to create multiplatform content.

    Following, at 615 pm, KenRadio Broadcasting in the U.S’ Ken Rutkowski will host a Q&A session with both Miller and Burnett.

    Earlier at 10 am on 4 April, Rutkowski also moderates the On-Demand TV SuperPanel: Evolution of Media Business Models, Threats and Opportunities. Exploring alternative revenue streams for broadcasters, content providers and advertisers, the panel will include Nielsen Analytics SVP and GM Larry Gerbrandt; Sparrowhawk Media/Hallmark Channel CEO David Hulbert; Brightcover chairman and CEO Jeremy Allaire; BBH U.S’ former chairman Cindy Gallop; CEO and co-founder of Sling Media Blake Krikorian and the CEO and chairman of Video Networks Roger Lynch.

    Three sessions take place at 11 45 am. Mobile Video On-Demand: Turning Grey Time to Prime Time, organized with Digital Rum, will include, among others, the head of mobile data products at O2 Hugh Griffiths; the head of interactive at MTV Networks for the U.K. and Ireland Matt Kershaw; the director of strategy and business development at Nokia Juha Lipiainen and the director of Sky Interactive at BSkyB Ian Valentine.

    In the Asian Television Market Update, ImaginAsian TV’s VP of programming and acquisition, David Chu, will moderate a session with the chairman of The Interactive Channel Robert Chua; the head of the global strategy team at KBS Mun-Ki Eun; the president of China’s Pegasus & Taihe Entertainment International Jianjun Sun; Animax Japan Maseo Takiyama; and the CEO of MediaCorp TV12 Singapore Alice Tan.

    Meanwhile, In Fresh Around the World, WIT’s Virginia Mouseler will look at some of the trends in television around the world.

    The afternoon sessions include Internet TV Comes of Age and Docu Drama: What Is It Really? at 3 pm. The latter will be moderated by TF1 reporter Loïck Berrou and will include the documentary acquisitions manager at RTI/Mediatrade Daniela Bagliani; editor in chief at CCTV Jason Chen; producer at France’s Boréales-Winds Frédéric Fougea; Granada International’s Noel Hedges and the VP of historical programming at The History Channel Carl Lindahl.

  • Wake up call for broadcasters: Jain, Kalle

    Wake up call for broadcasters: Jain, Kalle

    MUMBAI: “My time is prime time. Today consumers want to watch television at their own time, place and convenience. The scenario is moving from a phase when the broadcaster used to define prime time… now it’s the consumer who takes the call,” said The Walt Disney Company India managing director Rajat Jain.

    Jain attributed this phenomenon to the changing times, dynamic technology, the changing consumer, changing media scenario and rise in consumer friendly technological devises.
    He also stressed on the three screens that will gain importance in the future: television, mobile and computer. “India has 80 million phones, 37.5 million internet and broadband users, 4.3 million computer and 473,000 laptops. The buying power among Indians is also on the rise and there is an emergence of a new tribe ‘Technobabies’ who are born to be wired and tech savvy. They do their homework online and also buy CDs and books online,” he said.

    Jain reiterated the point that technologies like IPTV, DTH, TiVo and broadband will make the environment more dynamic with interactivity coming in. He gave examples of BBC and ITV teaming up in a “multicasting” trial to broadcast their main channels over the Internet for the first time.

    Jain emphasized on the breakthrough iPod technology, wherein television shows could be downloaded on the iPod for 99 cents. However, Sony Pictures Television International vice president international networks Superna Kalle pointed out that while it was brilliant that people were downloading and watching shows on the iPod; but it also meant that they were not watching them on their television sets and hence broadcasters and advertisers were both losing out. “These disruptive technologies are reshaping the broadcast landscape. Broadcasters have to rethink their strategy,” Kalle emphasized.

    She further added, “Channel brands do not matter anymore as most people in the US are using the TiVo technology where you can zap ads and watch what you want to watch. It is the shows that are becoming a brand now.”

    Kalle also pointed out the various opportunities in digital broadcast. “Do not alienate existing audiences but continue to march towards the inevitable future. Each approach requires a different device and each changes viewers in a different way. Emerging digital technologies can be an opportunity or a threat for broadcasters,” she concluded.

    “Consumers today want seamless availability of content for their personalized viewing. They want control over time and place of viewing content and pay per view could well be the new norm in the near future,” Jain said.

    He signed off by quoting The Walt Disney Company CEO Robert Iger as saying, “Technology also powers creativity and innovation. Across our company, we are using technology to improve our product and remain on the leading edge of entertainment offerings. We firmly believe in a platform agnostic approach to distribution. Applying technology to enhance our content and extend its distribution enables us to get closer to our increasingly more sophisticated customers worldwide.”

  • TV industry needs to address structural issues to absorb capital

    TV industry needs to address structural issues to absorb capital

    MUMBAI: The media and entertainment industry will be able to receive large doses of capital only after sorting out several issues, investment bankers at a seminar today said.

    Size, consolidation and scale are hurdles that prevent serious investments into the filmed entertainment business, said Carlyle Asia Investment Advisors managing director Rajeev Gupta, while speaking at FICCI-Frames 2006 on “Financing options for Indian Entertainment Industry.”
    The industry will not be able to absorb capital if the structural issues are not addressed. “Size will be able to deal with volatility. Consolidation pressures are there. Scale also has to be built up, particularly for single theatres. Everybody is so sub scale that the top six listed film entertainment companies earn just Rs 2 billion,” he said.

    With such issues dogging the industry, Waygate Capital is investing in ventures like animation and gaming where technology meets entertainment. “The outsourcing model in animation is not right for India which is about 20 years behind other Asian markets. China, Philippines and Korea have developed a maturity. The focus should be on an IP-driven approach,” said Waygate Capital managing director Rajesh Jog.

    On the gaming side, however, India can be at the forefront of the outsourcing model. There is a rich domestic market to tap too. “In mobile gaming business, we have the chance of becoming leaders. Online gaming is also likely to see growth,” Jog said.

    Waygate is planning to float a film content fund. “We are in talks. We haven’t yet decided on the corpus,” Jog added.

    Which sector is receiving private equity financing? “Broadcasting and print is where capital is going as there are several organised players and scalability is possible,” said GW Capital Private Ltd partner Vikram Narula.

    The last mile business like film exhibition is seeing capital infusion. Once addressability is in place, there will be investment opportunities in Cable TV. Direct-to-home (DTH) will also attract investments.

    “Film and TV content businesses have not seen much private equity. Radio is a new area which can lure in investors,” Narula said, whose company acquired Star’s stake in Radio City.

    Poor performance by many listed media companies have pulled down the credibility of investors in the sector. But what will generate interest in film financing? “Tax structures have to come down to bring down prices and create more demand. The sector needs consolidation. Special verticals like film funds have to be floated,” said Ambit Corporate – Finance Pte Ltd managing director Ashok Wadhwa.