ITV

Tag: ADAG

  • BTVi abruptly suspends transmission on broadcast platforms

    BTVi abruptly suspends transmission on broadcast platforms

    MUMBAI: In what seems like a bolt from the blue, English business news channel BTVi on Saturday informed its employees of the company’s decision to abruptly ‘suspend transmission on broadcast platforms’ from midnight (31 August).

    “Over the next few days, we will communicate the future steps towards a smooth transition of our operations,” further read the HR’s communique.

    It now remains to be seen whether BTVi, owned by Anil Ambani’s Reliance ADAG, changes hands in terms of ownership or ceases to exist in all forms including digital.

    The news of BTVi shutting shop comes on the back of major financial troubles for its promoter as well as a churn in news media.

    In the last few months, several organisations have either suspended operations like Kapil Sibal-promoted Tiranga TV and India Today-owned opinion website DailyO or scaling down on resources like Scroll.

  • Zapak Mobile Games launches Brainbots vs. Zombie mobile game

    Zapak Mobile Games launches Brainbots vs. Zombie mobile game

    Mumbai: Zapak Mobile Games, a developer and publisher of mobile game from Reliance ADAG, has announced the launch of a new mobile game ‘Brainbots Vs Zombies’.

    Zapak has launched the game, which will be available for free on Google Play, keeping in mind the upcoming summer holiday season

    The mobile game that is set in the post apocalyptic future is a casual arcade game. The plot of the mobile game revolves around a herd of zombies and their quest to attack the last settlement of the brains. The brains, tired of protecting themselves decided to stay put and make a stand against the advancing zombies. The primary goal is to protect the brains by killing the zombies.

    The player in the mobile game can use the brainbot and smash all the incoming zombies to pulp, before they break in and eat up all the brains. The player can move the brainbot left to right and to kill the zombies the player has to drop the spiked metal ball on them. Over time the Zombies will attack the defenses and the player can repair them to prevent more zombies from getting in. If the zombies eat up all the brains, it‘s game over.

    Talking about the launch Zapak Mobile Games India business head Chaitanya Prabhu said, “Our newly launched game, Brainbots vs. Zombies is a complete package of adventure and thrill. This game is an addition to our current catalogue which provides highly entertaining and engaging mobile games to casual gamers across the world.”

  • ‘Scaling up through film acquisitions is a risky model’ : Mahesh Ramanathan- Big Pictures COO

    ‘Scaling up through film acquisitions is a risky model’ : Mahesh Ramanathan- Big Pictures COO

    Rock On! was only the beginning. After going on to create a new set of cult audience with their first co-production, Reliance ADAG's Big Pictures is bullish on its 18-movie slate for 2009.

    On the distribution front, Big Pictures rode on the success of Ghajini at the fag end of 2008 to get a slice of the overseas business with Rs 390 million. The challenge this year is to step up the film production and distribution business.

    In an interview with Indiantelevision.com's Anindita Sarkar & Gaurav Laghate, Big Pictures COO Mahesh Ramanathan talks about the company’s production plans and the revenue scope that the film business offers as different studios scale up.

    Excerpts:

    Big Pictures had made a grandiose announcement of producing 18 movies in 2009. But with the economy slowing down, is there a revised plan?
    With the Indian film industry growing at a CAGR of 17 per cent, which is almost double the GDP growth rate, box office definitely remains unaffected. Though there is a slowdown in the economy, that definitely does not lead to any de-growth in demand. If the content remains right, there can't be any downturn in consumer sentiments when it comes to movies.

    Having the financial muscle of Reliance ADAG, why has Big Pictures gone in for six Bollywood co-productions out of this roster of 18?
    Co-production deals for us actually bring in a perfect marriage between creativity and commercial acumen. While we bring in certain virtues like financing, marketing, promotion and distribution of content through our various platforms (online, home video, mobile, DTH), the director still calls the shots. However, he has to align his creativity with us to bring in the viability for the product for commercial exploitation.

    You will also be producing seven regional films this year. What kind of potential do you see in the regional film space?
    The regional film space currently accounts for 50 per cent of the Indian film market and is growing. While there is a huge appetite for Bengali films, the Southern region is definitely a huge market to tap. Marathi film industry is also revamping. So the potential to commercially exploit these markets remains huge.

    Any plans of entering the Bhojpuri market?
    We don't plan to step into the Bhojpuri market as of now as there are huge distribution challenges.

    Recently, we have seen a lot of small and mid budget films raking in good numbers at the box office which also includes your first Hindi production Rock On. Do you plan to create more small budget movies?
    Our business model is not based on budgets. While we do have a few low budget films like Sikander and Chaloo lined up for 2009, we will begin the year with our big budget Luck By Chance. Budget is purely a derived figure based on the demands of the script. Our approach is more towards building a portfolio across a variety of genres that include small, medium and mid-budget movies.
    'Our business model is not based on budgets. Our approach is more towards building a portfolio across a variety of genres that include small, medium and mid-budget movies'
     

    Year 2008 was a year of film acquisitions for some major studios. Why did you decide to stay away from it?
    Scaling up through film acquisitions remains a very risky model. When you are acquiring a film, there is a lot of producer profit that is built in which jacks up the price. Our business model focuses on creating original content. Not only can you keep your costs low but also ensure that the viability of the film remains secured.

    If you are into acquiring of films, you are entitled to exploit the product only for a stipulated time period. This is not the same case with content creation. Original content helps you build your own catalogue and once the catalogue is built you can use it to create more revenue streams.

    What role does marketing and promotion play in increasing a film's occupancy in theatres and multiplexes?
    Huge! Take Ghajini for example. The pre-release marketing and promotional activities for the film induced extreme interests amongst audiences and as a result Ghajini witnessed almost 100 per cent occupancy in its first week at theatres. The marketing activities that we did across 40 territories overseas also helped us generate a lot of eyeballs. So marketing is definitely very important to tap the right audiences.

    How difficult is it to tap the right set of audiences?
    Because of media fragmentation, it is becoming very difficult to reach the right set of audiences and engage them. Today, you cannot pin your hopes onto only the press and television. You have to have a 360 degree approach and mass customise your communication to audiences – and this is where we score. We have a presence across almost all media and entertainment platforms – be it radio, home video, online, mobile, social network etc. Thus, synergising all these platforms helps market and promote our films in a much focused way. It is also very cost effective.

    How do you strategise your film marketing activities in the international space?
    Unlike India, it is more of micro-marketing in the overseas market where you target the diaspora. Hence, the choice of media vehicles is more local there. You have to be aware of the local newspapers and have to have a local expertise and channelise them smartly.

    Though in terms of value the Indian film industry is only 2 per cent of the entire global box office, it is generating interests across international studios. Why?
    When it comes to the number of films produced in a year, we are definitely the largest in the world. India produces over 1000 films a year. We are also the largest box office in the world with 3.5 billion admissions a year. While Hindi films account for approximately Rs 50 billion, a similar amount is generated from regional movies. So it's definitely an attractive market for international studios that have long term plans in this country.

    When it comes to value, our box office stands at only 2 per cent of the global box office. But that is because our collections are still dependent a lot on single screens where ticket rates are really low. However, with the establishment of 3700-3800 multiplex screens in the next five years, we will see a lot of value being added to the box office.

    How much of the revenue generation potential of a film is inflicted by piracy?
    Between theatrical, home video and cable, it is estimated that the overall piracy eats away almost 80 per cent of the film's entire revenue potential.
  • ‘Carriage market has exploded and will close this fiscal at Rs 14 billion’ – Gurjeev Singh Kapoor

    ‘Carriage market has exploded and will close this fiscal at Rs 14 billion’ – Gurjeev Singh Kapoor

    Broadcasters are being hit hard by hefty carriage fees as bandwidth is getting choked both on analogue cable and DTH (direct-to-home). Building formidable distribution bouquets is high on their agenda as they struggle to ramp up subscription revenues which are estimated to touch Rs 28 billion this fiscal.

    Star Den, a 50:50 joint venture between Star and Digital Entertainment Networks, is quickly adding regional channels to complete its otherwise strong Hindi and English entertainment-news-kids bouquet. Zee-Turner is the only other broadcasting distribution company which has a formidable regional content lineup.

    Star Den is eyeing a revenue of Rs 10 billion at a time when the television industry is beginning to feel the first serious signs of a slowdown in advertising revenues. Analysts say this will be a hard task to achieve, despite the boon from DTH revenues. Big TV and Airtel Digital TV launched later in the year, reducing prospects of a full-fiscal revenue gain for the broadcasters.

    In an interview with Indiantelevision.com’s Sibabrata Das, Star Den Media Services chief executive officer Gurjeev Singh Kapoor talks about the dark holes in the distribution business and how the company plans to ramp up growth in a tough business environment.Excerpts:

    Is the steep climb in carriage fees upsetting the business model of broadcasters?
    The carriage market has exploded and is expected to end this fiscal at close to Rs 14 billion, up from Rs 6 billion a year ago. As there is a huge amount of bandwidth constraint on analogue cable and even DTH, the industry has changed in terms of carriage. DTH operators are offering 200 channels while the Information and Broadcasting ministry has given the nod to 370 channels. A plethora of channel launches in the Hindi general entertainment, news and regional space has meant that there is a fierce fight for frequency. In a market where funding was easily available, channels were willing to pay more for space on cable networks. Insanity ruled the market.

    Will we see a correction in the carriage market?
    The balancing act has to happen now. With private equity and other sources of funding drying up, many broadcasters have started contracting their distribution budgets. We could see a flat carriage growth next year as channels start rationalising their costs. Broadcasters are in no position to be omnipresent in all cable networks; they will have to pick and choose where they want to be present and optimise their resources.

    But we will continue to see more channel launches next year as Reliance ADAG is planning to get into broadcasting space. Even existing players like Star India have plans to add more channels. Won’t this ensure that the carriage tap continues to flow freely?
    We may see a 10-15 per cent growth in carriage fee market in FY’11 as more channels enter the race. The next two years will be the blue litmus test for many broadcasters. For the weak channels, there could be a shake out. The fact is that distribution costs have grown unmanageably high.

    There can be no potential threat to carriage revenues unless the digital universe expands to at least 25 per cent. When we reach that stage, other models can emerge like broadcasters getting into agreements for sharing their distribution revenues with delivery platform providers.

    Are broadcasters getting united to resist on carriage fees?
    Broadcasters have doled out so much money in the past because of competition that it will be difficult to correct the system fully. More so, as we will see new channel launches. Carriage fee is being governed by market forces. But it is good that the thought process has started to fight carriage fees collectively. How far that will succeed only time will tell.

    Would you want Trai to (Telecom Regulatory Authority of India) come out with some regulation on carriage?
    I wish there could be some kind of formula that can be arrived at to regulate carriage. As an idea, it is definitely good since the regulator has mandated pricing issues.

    How difficult is it to ramp up subscription revenues in the backdrop of MSOs (multi-system operators) consolidating the cable TV market and Trai introducing pricing regulations?
    Subscription revenue for pay-TV broadcasters will close at Rs 28 billion in FY’09, up from Rs 23 billion a year ago. Even though there is a slowdown in the market and the times are tough, the industry expects a 10-15 per cent growth in FY’10.

    Isn’t that growth mainly because of DTH?
    DTH, undoubtedly, has expanded the market. But ARPUs (average revenue per user) haven’t grown in the DTH business; they are virtually the same as that of cable. IPTV, though much talked about, has also not happend this year.

    Will Star Den’s revenue touch Rs 10 billion this fiscal?
    While we are looking at very aggressive numbers and have set ourselves a very challenging task, I can’t comment on our financials.

    Do broadcasting distribution companies see the consolidation in the cable TV sector as a welcome change?
    The marketplace will make it difficult for small networks even as broadcasters rationalise their distribution budgets. Networks who have a geographical spread can bargain hard with broadcasters. In the short term, they will get paid more and will be reluctant to pay for more subscribers. But in the long term, it is better that the industry moves towards a better structured environment. MSOs and broadcasters have to join hands and realise that ultimately money has to come from the ground.

    Since the parent owner of Star Den also runs a cable TV company, how do you leverage the power of your bouquet to push the cable distribution business?
    We operate as independent entities. We treate Den like the other MSOs.

    Star India had earlier inked a distribution deal with sports broadcaster Neo which did not last long after the new management took over. Do you feel that the Star Den bouquet is strong but still incomplete without sports channels in its mix?
    We are currently distributing 23 channels and are in a very strong position to post growth. We have great quality content in the Hindi general entertainment space with Star Plus as the leader and Star One in the fifth spot. In the news television space, we have Times Now which leads in the English segment, CNN-IBN, IBN7 and Star News. CNBC TV18 and Awaaz, of course, are leaders in their segments and are powerful subscription-driven channels.

    In the kids genre, we have Hungama and the three Disney channels. For the English-viewing audiences, we have a formidable presence in Star Movies, MGM and Star World. We also distribute NGC and Zoom.

    We are now filling up the missing pieces and adding the regional bouquet. With Star buying majority stake in Asianet, we will cover all the languages down south. Star has also launched a Bengali and a Marathi general entertainment channel while the one in Gujarati is in the pipeline.

    Will Colors (the second most-watched Hindi GEC from the Viacom18 stable) automatically come to your bouquet when it decides to go pay?
    I wouldn’t like to offer any comments.

    Will you also be getting the MTV channels after Viacom’s contract with One Alliance expires on 31 March, 2009?
    I don’t want to comment on this.

    What about the wedding and home shopping channels that Star is planning to launch next year?
    Whatever niche channels Star launches, we will be happy to service. Niche channels will have a demand particularly on digital platforms. One the Fox channels launch, we will also be happy to distribute them.

  • ‘Working on an umbrella brand strategy is a good way to build a presence in the entertainment space’ : Rajesh Sawhney – Reliance Entertainment President

    ‘Working on an umbrella brand strategy is a good way to build a presence in the entertainment space’ : Rajesh Sawhney – Reliance Entertainment President

    As 2007 comes to a close, Reliance Entertainment president Rajesh Sawhney is an apt choice for our year-ending interview, not necessarily in the context of what Anil Ambani’s company has done in the broadcast space this year, but because of the expectations from industry, going forward.

     

    On the television front, the journey of being a broadcaster starts next year with the launch of two movie channels (first Hindi and later English), a logical extension from Reliance ADAG’s existing film production and distribution business. The broadcast piece will add to a list that ranges from multiplexes to movies, home video, FM radio, direct-to-home (DTH) and IPTV.

     

    On radio, the aim is to consolidate its position. It will also be active in distribution with its DTH platform coming up. Thomas Abraham and Ashwin Pinto caught up with Sawhney to find out about the plans and the kind of impact that Reliance is looking to have on the entertainment space.

     

    Excerpts:

    Firstly, 2007 was the year when Reliance Entertainment sowed the seeds for what is to come. What were the landmarks for this year?
    We are a young player only two years old. Our journey into entertainment kicked off with the Adlabs acquisition. Then we moved into radio in 2006. We started rolling it out by the end of last year. Then we moved into other ventures like Zapak, our gaming portal. From my perspective, we are still in the incubation phase and the larger consideration is that the entertainment and media industry is where telecom was five years back. The media industry will be worth $25 billion in five years time. A lot of value creation will happen in the coming five years similar to what was seen in telecom.

     

    The second big thing will be the emergence of digital entertainment. Platforms are now set. This will be a large driver.

     

    The third thing is that with the economy growing at 10 per cent, the Indian consumer is spending more and more on entertainment. The first indication of this is the multiplex boom. Now even monies spent on entertainment at home like DVD rentals, pay per view are growing.

     

    The entertainment industry is worth $ 11-12 billion out of a trillion dollar economy, which means 1 per cent of the economy. Globally it is 3 per cent. In the US, it is 5 per cent. If we take the telecom parallel, revenue is 3-4 per cent. In India it is 2.5 per cent. India has a convergence deficit in this sense. This is where the real opportunity is going forward.

     

    I see Indian players having strengths in certain verticals. Some are strong in print, others in movies while others focus on radio. Nobody is building a comprehensive brand presence across media. This strategy would allow you to capture the three per cent deficit. This is what we are chasing.

    What is the kind of impact that Reliance is hoping to have on the entertainment space across the different verticals?
    Let us take the movie industry. It is on a huge cusp of change. If you go back 10 years there were no multiplexes, no DVD formats. Home entertainment will be the next value driver for the movie industry in the coming decade. DVD and home entertainment revenues are the biggest source of revenue for Hollywood. Here it is less than 10 per cent. We are going through the first phase which is theatrical revenues. Home entertainment will be the next phase.

     

    For this you need concepts like Big Flicks which will make organised retailing possible. It will make home entertainment delivery through broadband, DTH, IPTV possible. Pay per view revenues will be created for the Indian movie industry. Content in the long tail form across different platforms will offer more choice. The companies who are preparing for this will gain big time as far as the movie industry is concerned.

     

    The second revolution happening in the Indian movie industry is on the content side. So production values have risen. Talent is getting a huge amount of value which is getting aligned to global values. Content will get value from overseas markets, home entertainment, satellite markets. A $10 million movie has become the norm. I can see a situation where $100 million movie is viable but this will take time to happen. You will see Hollywood and Bollywood collaborating more.

    How will Reliance benefit from the synergy between Reliance Communication and Reliance Entertainment?
    Reliance Communication is building distribution capabilities on mobile, DTH, IPTV and broadband platform. Reliance Entertainment is building a presence and capabilities on the content side across different verticals – content, broadcasting, themed entertainment and new media.

    A large part of your plan involves targeting the youth across different verticals. How are you going about this?
    We are a youth focussed company. This has a commercial reason. We believe that youth drives entertainment. Youth is driving the movie consumption business. India has the best youth demographic platform in the world. We are the youngest country in the world. We keep youth in mind in whatever we do whether it is radio with Big FM or making movies or Zapak.
    ‘The government should allow news and current affairs. This is why you do not have talk radio‘

    You have taken the brand name Big for your businesses like Big FM, Big Flicks. Is the aim here to convey to the consumer an idea about the size and scale of the brand?
    Unlike many companies that work with a house of brands strategy we believe that working on an umbrella brand strategy is a good way to build a presence in the entertainment space. The choice of the name is predicated on three reasons. Firstly it is simple to understand. Everyone, regardless of language, understands Big. The second reason is it is simple to communicate. A mass brand needs to be understood by everyone. And third, the brand name must give people an understanding of the scale at which we want to bring entertainment to consumers.

    How important is the broadcasting space for Reliance?
    It is very important for us. Our first investment has been in radio with Big FM. We won 145 licenses in 2006. We will take part in the next round of bidding when the government goes ahead. We are the largest radio station in the country with 40 stations. With the execution of radio we have shown a clear commitment by executing the fastest. In Delhi, Bangalore and Mumbai we have emerged as a top player. We have created a leadership position not just by the number of stations but also in the markets where they operate, including those that are entrenched. We want to consolidate our position next year.

    Radio needs to differentiate itself instead of just going after the widest lane with popular Hindi songs. Why isn’t this happening?
    I do not blame the private players for this. I blame government policy. The government should allow news and current affairs. This is why you do not have talk radio. Multiple stations should be allowed. At the moment only five to six stations are available in the Metros. The government should ensure that 30-40 stations are available. One company can run five channels in a state. The government should introduce policies to facilitate the next growth phase. Niche formats become viable if frequencies are made available at lower rates. Running a Gujarati channel at a license fee of Rs 30 crores (Rs 300 million) does not make sense in Mumbai.

    Are you also looking at online radio?
    Yes! In the West, radio is a mature industry. Online is a growth industry there. In India FM and online are coming at the same time. The biggest opportunity is in FM. It is hugely underserved India should have 10,000 FM stations. Now there are less than 300 stations. I can run stations in different languages in Mumbai with viability as long as I am allowed to do so. There is also an opportunity to serve the non resident markets.
  • ‘Home entertainment is not a commodity but a content- driven business’ : M.N. Kapasi – Excel Home Video MD

    ‘Home entertainment is not a commodity but a content- driven business’ : M.N. Kapasi – Excel Home Video MD

    For Excel Home Video, it is time to expand as big companies like Anil Ambani’s ADAG are planning an entry. The firm recently added MGM to its portfolio of Hollywood studios it has deals with. It is also tapping the TV DVD segment aggressively this year.

     

    Eventually, Excel plans to get into local content as well for the overseas markets. Indiantelevision.com’s Ashwin Pinto caught up with Excel Home Video MD M.N. Kapasi to find out more about the home video market and the company’s growth plans.

     

    Excerpts:

    With how many studios does Excel have deals structured?
    We are the home entertainment licensees for among others Fox, Touchstone, Hit Entertainment and Merchant Ivory Productions. Recently, we added MGM to our catalogue. We also have a lot of independently acquired international content. These include documentaries and special interest products. We also have some children’s titles. We recently launched an educational product called Love And Intimacy.

     

    We have a revenue sharing arrangement with the studios. We also have the master license of Electronic Arts.

    What is the share of Hollywood studios have in the home video market? How is Excel faring and what is the growth rate you are expecting?
    Studies have shown that international content in the home video business has a large share. For Planet M, for instance, 45 per cent of home videos sold are international.

     

    Within this category, Excel has a 40 per cent market share. We expect growth of 25 per cent CAGR.

    Generally how many units do you sell on an average for a title?
    This is difficult to pull out. The industry which is nascent, is still hits-driven. One big hit or a flop, can skew the average. A big title normally does 15000-200000 units. An average performer sells around 10,000 units.

     

    For this year so far, our top sellers have been Dor, Pirates Of The Caribbean: Dead Man’s Chest, Night At The Museum, Cars and The Devil Wears Prada.

    Excel has been scouting for a strategic investor for quite some time. Has anything moved on this front?
    We are always open to this option. A partner would add to the speeding up of our growth. The partner could be forward or backward integrating.

    How has Excel gone about improving its distribution model?
    The addition of our gaming division has strengthened our distribution. That is because every gamer is a movie buff.

     

    We have chased the non traditional distribution model quite aggressively. This includes having a presence in major retail stores which do not have music but have movies and games. A division in our firm actually looks after this aspect.

     

    We do not have baggages. Firms that are older than us came into the home video area with baggages. They had the psyche that home entertainment is more a rental product than a retail one. Our aim was to make the home entertainment space an ownership business rather than just a renting one.

    Could you talk about your Movies and More division that launched last tear?
    It is a retail chain division focussing on films. It also sells games and music. It is run by movie buffs and targets a captive audience. We are now looking at category management tie ups.

     

    Right now there are 14 outlets in Mumbai and Pune. The target is to reach 40 outlets across different cities by the end of the year.

    Now you have ATM machines and online selling companies dealing with DVDs. How is Excel adapting in this changing environment?
    We are a technology savvy firm. We know how online buying happens in most developed countries. We have used the internet in the past for gift ideas, pre order campaigns. The internet works well for this.

    One problem for a Hollywood fan is that only a fraction of the films released in the US are available on home video in India. That is also the case with theatrical releases. Do you see this situation changing or is there not enough demand for Hollywood beyond blockbusters and franchise properties?
    The scope is there to expand. We have tried new things over the last couple of years. We have released direct to video titles. This year we are looking at TV titles.

     

    However the certification process is the one factor that slows us down. Even though home video is a private decision, unlike cinema which is public we still have to get our products certified. The TV show Prison Break has been sitting with the censors for the past seven months.
    ‘We are open to strategic investors. A partner would add to the speeding up of our growth‘

    Could you elaborate more on the television DVD plans?
    This is a very niche segment still in India but there is a market for it. Due to the size of our population even that niche is large. This year we are focussing on this area.

     

    We are looking to have 20 titles here. Six to seven titles are already present in the market. We will launch new seasons of shows like 24, Desperate Housewives, Lost, Alias. Commander In-Chief is another show that we will launch on DVD. TV shows on DVDs in developed markets contributes 22 per cent to home videos revenues. We expect similar growth in India.

    Does Excel have plans to get into the rental business as well?
    Our Movies and More division is capable of adapting to the rental model. We had the idea that it should be like Netflix- a rental, online hybrid. But there are challenges.

     

    As you said, there is a lot of content in the US that we don’t even have a fraction of. You find rental products in the grey market and through parallel imports. For instance, the film Borat has not been rated and is available for rental. If we were to get into rental, then we would have to compete with this. A level playing field does not exist. Having said that, firms like Reliance are setting up rental outlets and we are looking forward to seeing how they fare.

    You mentioned the tie up with Electronic Arts last year for interactive gaming. What progress has been made in this area?
    There were start up issues and the tie up was novel. We had aggressive price points and avoided titles which have parallel imports. The gaming industry like home video, has parallel imports.

     

    We brought in new capabilities. We released the Harry Potter And The Order Of The Phoenix game which was at the same time as the global launch. Next year there will be Fifa 2008. At this point in time we are not talking with Indian game publishers. Electronic Arts realised that we have in-house synergies which would help the games business.

     

    Since we have the market leader in gaming with us, we would like the business to settle down before distributing other firms’ products. The amount of money that Electronic Arts puts into making a game is sometimes equal to a Hollywood blockbuster. That is why their products are at least twice as superior to the competition.

    Packaging is important when it comes to purchasing decisions. What innovations has Excel done recently in this regard to distinguish its products?
    It is around 15 per cent of the effort that we make in product presentation. It is important that packaging connects with the film. We also provide value adds and also in terms of the picture and sound quality. International content has DTS, THX certified sound on them.

     

    There are only two Hindi films that have DTS sound on the DVD. Both of those titles, Lagaan and Parineeta, were released by us. Parineeta was the first Indian DVD to have a director’s commentary.

    What are the major titles coming up?
    We have Pink Panther, Bond titles to launch from MGM. We will be launching the TV show The Simpsons on DVD. We will be releasing films like The Last King Of Scotland, Eragon, Peter Pan Special Edition, Apocalypto.

    In terms of marketing what are the kind of activities that Excel does to create buzz around new titles?
    The home video segment has a limited marketing budget. So we innovate. One programme is exchanging VCD tiles and the consumer only has to pay the difference to get that title in DVD. This has worked well.

     

    We find that this particularly happens for premium classic titles like Titanic, Sound Of Music. We also have a money back guarantee for all our products.

     

    We do tie ups with hardware retailers. So if someone buys a DVD player from a certain retailer there will be our coupons offering a discount. That way it makes it easier for the customer to immediately start a library. In the past we have also done synergy marketing like re-releasing a film on home video when its sequel was being released theatrically.

    There is a lot of talk about low prices of DVDs. Does Excel have plans here to reduce prices which would lead to more sales?
    We have around 30 different price points. We have animation VCDs priced at Rs 50. Then we sell a complete season of a TV show like Lost for Rs 2000. Sometimes we also have different price points for the same product. For instance while the Parineeta DVD was sold at the Rs 300 price point, we came out with a Collectors Edition for the film which cost Rs 600.

     

    This is based on consumer research. I don’t think that home entertainment is a commodity business; it is a content driven business. Do you buy a book just because it costs Rs 30?

     

    We do consumer price point promotions. We have a promotion running with 200 titles. Each is not more than Rs 333. Our dubbed VCDs are cheaper than the English VCDs.

    The challenge in local content is that prices are coming down. How will you cope with this?
    In terms of prices, the feedback we have been getting is that often cheaper priced DVDs have the quality of a VCD. It is the equivalent of buying cheap T-shirts from street vendors that quickly get ruined in the washing machine. Does the consumer only care for a low price and not for quality? When we get a nod to this answer, then we will have a re-look at our strategy.

     

    Right now we do not want to compromise on quality. Parineeta, Corporate and Dor sold over 1,00,000 units at price-points that are 10 times higher compared to low priced DVDs that you refer to. Great content, good quality at the right price-points and penetrative distribution will always have the ‘Consumer’ with it.

     

    We also want to sell Indian content on home video abroad in countries like the US, UK, Australia from next year. The NRI market is underserved in this area. We have already started putting plans in place for this. In those markets the content on home video might be there but the quality is lacking in terms of presentation. We will make sure that our products are available with as many retailers as possible. We, however, do not plan to set up our own stores abroad.

    What are your expansion plans?
    We will have more local content next year. While some film producers have started their own home video label, there are also independent producers who do not have their label. They do not have an outlet as they do not have the economies of scale of putting it in place.

     

    Our aim is to release six to eight films next year. We will scale this up as we go along. We are looking at a revenue sharing model with the producers and we are confident that this will happen as we are transparent in our operations.
  • TDSAT dismisses Radio Mid Day plea for uniform frequency

    TDSAT dismisses Radio Mid Day plea for uniform frequency

    MUMBAI: Radio Mid Day’s hopes of retaining its well known 92.5 MHz frequency hit a wall today after the sector regulator TDSAT dismissed its plea against the government’s decision to withdraw it. 

    The “big” beneficiary of the tribunal’s decision is the Anil Dhirubhai Ambani Group (ADAG)-controlled Adlabs’ Big FM, which has been alloted the 92.7 MHz frequency, as part of its unified frequency regime, to broadcast from 44 radio stations across India. 

    Radio Mid-Day, which manages Radio One (formerly known as Go 92.5 FM), has been broadcasting in Mumbai for around four and a half years on 92.5 FM. This frequency band has grown to be the brand identification, according to Radio Mid Day.

    But, Tdsat observed, “The importance of brand name of the broadcaster cannot be underestimated, particularly, in view of the provision in the “channel identity” clause which talks of brand name of the broadcaster. Frequency is not part of the brand name of the petitioner. The petitioner got its brand name changed, which was not objected to by the government. Petitioner’s (Radio Mid Day) popularity is through its brand name. It cannot insist on having a particular frequency number.”

    Despite refusing to shift to 94.3 MHz, the brand Radio One is already broadcasting on this freqeuncy in Bangalore and Delhi. Tdsat pointed out that nobody makes any gain from the Radio Mid Day being shifted to another frequency. Rather it in the interest of Radio Mid Day that it will have same frequency i.e. 94.3 FM for all the cities for which it has broadcasting licence except Ahmedabad for which petitioner makes no grievance, highlights Tdsat.

    Interestingly, the adovcate fighting the case on behalf of Adlabs had mentioned that Radio Mid Day has to change its earlier allocated frequency in any case because of the non-availability of 92.5 MHz at all.

    This case has been fought over last two weeks. Radio Mid-Day had questioned the granting of 92.7 frequency to Big FM in Mumbai despite the norms of having a difference of at least 0.8 frequency between two stations. Radio Mid-Day had in fact first approached TDSAT seeking a uniform frequency for all its six radio stations across the country, but the government allotted different frequencies to it.

    The information and broadcasting ministry had earlier allocated 94.3 frequency to Mid Day Group for Radio One in Mumbai and other cities except in Ahemabad. But the Mumbai-based company refused to switch to the new frequency asserting that 92.5 FM has grown to be its brand identification.

    How Radio Mid-Day responds to this setback remains to be seen.

  • Branded ‘Big’, ADAG’s FM venture targets 12 October launch

    Branded ‘Big’, ADAG’s FM venture targets 12 October launch

    MUMBAI: The Anil Dhirubhai Ambani Group (ADAG) is entering the final stages of preparation for its “Big” bang entry into the FM radio field.

    The Ambani brothers are known for doing everything on a big scale and it is certainly no different in this case as younger brother Anil’s ADAG gets set to launch its 92.7 FM stations across India. It is only fitting, therefore, that ADAG is launching ahead of the Diwali festive season under the brand name Big Radio.

    According to sources, the group is targeting 12 October for the launch of its radio station in cities where the common infrastructure network exists. This includes Delhi, Mumbai, Kolkata, Jaipur and Surat.

    Big Radio is expected to be on air in Mumbai first, with a fast-paced rollout in the other cities where the common infrastructure exists. The teams for the radio stations are already in place with radio jockeys and other engineers hired and ready.

    Big Radio will be facing a phalanx of established players when it launches services in Mumbai. The group will have to compete with players such as the Times Group’s Radio Mirchi, Radio City, Red FM and Radio One (Formerly was known as Go FM), who have been in this game for over five years.

    One advantage Big Radio will be looking to leverage upon is the massive mobile phone user subscriber base that sister concern and telecom major Reliance Infocomm provides. Big Radio will be introducing a lot of interactive features with the specific aim of building a community of cell users hooked in to the station, industry sources have told Indiantelevision.com.

    Another “Big” advantage ADAG is banking on is that it has the ultimate brand icon in the “Big B” Amitabh Bachchan endorsing the station. If ever there was a case of the brand and the ambassador fitting to a T, it is this.

    ADAG originally secured its FM licence through Adlabs Films Ltd (AFL) in which it has a controlling stake. But post the demerger of the radio business, the company has transferred its FM operating units to Reliance Unicom Ltd.

    Big Radio will manage 45 FM stations. The frequencies were bought out for approximately Rs 1.60 billion. Initially, the company had bagged the licence for 57 frequencies but had to surrender the licence for 13 cities as per the norms, which do not allow one single company to hold more than 15 per cent of the total allotted frequencies.

  • Branded ‘Big’, ADAG’s FM venture targets 12 October launch

    MUMBAI: The Anil Dhirubhai Ambani Group (ADAG) is entering the final stages of preparation for its “Big” bang entry into the FM radio field.

    The Ambani brothers are known for doing everything on a big scale and it is certainly no different in this case as younger brother Anil’s ADAG gets set to launch its 92.7 FM stations across India. It is only fitting, therefore, that ADAG is launching ahead of the Diwali festive season under the brand name Big Radio.

    According to sources, the group is targeting 12 October for the launch of its radio station in cities where the common infrastructure network exists. This includes Delhi, Mumbai, Kolkata, Jaipur and Surat.

    Big Radio is expected to be on air in Mumbai first, with a fast-paced rollout in the other cities where the common infrastructure exists. The teams for the radio stations are already in place with radio jockeys and other engineers hired and ready.

    Big Radio will be facing a phalanx of established players when it launches services in Mumbai. The group will have to compete with players such as the Times Group’s Radio Mirchi, Radio City, Red FM and Radio One (Formerly was known as Go FM), who have been in this game for over five years.

    One advantage Big Radio will be looking to leverage upon is the massive mobile phone user subscriber base that sister concern and telecom major Reliance Infocomm provides. Big Radio will be introducing a lot of interactive features with the specific aim of building a community of cell users hooked in to the station, industry sources have told Indiantelevision.com.

    Another “Big” advantage ADAG is banking on is that it has the ultimate brand icon in the “Big B” Amitabh Bachchan endorsing the station. If ever there was a case of the brand and the ambassador fitting to a T, it is this.

    ADAG originally secured its FM licence through Adlabs Films Ltd (AFL) in which it has a controlling stake. But post the demerger of the radio business, the company has transferred its FM operating units to Reliance Unicom Ltd.

    Big Radio will manage 45 FM stations. The frequencies were bought out for approximately Rs 1.60 billion. Initially, the company had bagged the licence for 57 frequencies but had to surrender the licence for 13 cities as per the norms, which do not allow one single company to hold more than 15 per cent of the total allotted frequencies.