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  • Times Network’s MK Anand prioritises subscription over advertising model

    Times Network’s MK Anand prioritises subscription over advertising model

    NEW DELHI: On day one of the News Television Summit  2020, Times Network MD and CEO MK Anand had a few words of caution to offer: monetisation by ad sales is a huge steroid that the news business is running on and which it needs to get out of. Instead, he advocated subscription.

    “When you go the subscription route, there is no need to be ratings-led. The current subscription numbers are 10x of what they were in 2014, when I joined Times. We have to benchmark ourselves on net distribution income (NDI). When it comes to NDI, a news channel should look at the top of the population pyramid more,” he said during a virtual fireside chat with Indiantelevision.com founder, CEO and editor-in-chief Anil Wanvari.

    For instance, Times Network focuses on the top of the pyramid as it believes this is something the organisation needs to cater to, not because of a single-minded determination to chase numbers. “We are numbers-sensitive in the sense that we believe our ratings, our reach, our penetration has to be high. But I absolutely do not consider time-spent (TSV) as a driving factor at all,” he claimed.

    Reach is a good driver, said Anand, adding that Times went from 300 headends when he joined the group to 3,000 plus in just two years.

    Anand went on to reveal that 54 per cent of the Times Network’s revenue in FY21 is going to come from subscriptions. “The total ratings-led business in our topline is less than 25 per cent. Earlier it used to be 90 per cent. Back then we didn’t have branded content or premium-led ground or digital business. Now 14 per cent is from digital while 14-15 per cent is branded content. Specifically, Times Now’s TRP-led business is less than 11 per cent of the total.”

    Wanvari quickly asked Anand if there’s a scenario where the Times Network converts its business model to 90 per cent subscription-led? Anand disagreed with that train of thought for the reason that the network’s audience is hot property for advertisers.

    “Our audiences are premium and our reach management is very aggressive. For advertisers, 40-45 per cent of the top-end audience can only be met through Times Network’s English movies or English news channels. We may not depend on them for survival but that’s a very solid audience for us to monetise and one advertisers can’t do without,” he explained.

    He went on to qualify that the ratio of ad sales (including digital) to subscription will settle at 40:60.

    Anand also upheld rival channel CNBC as a solid example of a subscription-based brand, adding that when it comes to business news channels there isn’t a high degree of dependency on advertising.

    “For niche channels, ratings do not matter. At Times, I have never, ever called up my editors and asked them why the ratings were up or down in any given week. I don’t believe that ratings are the be-all and end-all of right content,” he said.

    Touching upon the television ratings measurement mechanism, Anand asserted that he genuinely believes in the process – it’s only certain unscrupulous players who are trying to manipulate the system and they must be dealt with.

    “Whether it was Tam or BARC, I agree with the statistical and sampling processes. Lapses can happen anywhere but 99 per cent of the time it works. I don’t have a problem with the process. But content sensibilities are very different going down the population pyramid and it’s so much easier to get great numbers by continuously lowering the focus from the top of the pyramid to the bottom,” he added.

  • IPL 13 scores better than IPL 12

    IPL 13 scores better than IPL 12

    NEW DELHI: IPL 13 was the most awaited live property of the year, especially after Covid2019 turned us all into house-bound hermits. It provided people with a much needed break from the pandemic-induced stress and negativity. Starting from day one, audiences have been glued to their screens (TV & mobile) to watch their favourite team progressing up the IPL scoreboard. It was widely reported that the opening match of IPL scored over 269 million views, making it one of the biggest opening day numbers for any live event in history. In the most recent update, BARC India has shared that IPL 13 has clocked over 108 million cumulative reach which is 11 per cent higher than IPL 12, which clocked 98 million cumulative reach.

    On the other hand, the tournament has already clocked 7 billion viewing minutes while the previous instalment clocked just 5.5 billion minutes. For IPL 12, the data analysed includes Week 13, 14, 15, 16 and 17, which covers 44 matches aired across 24 channels. For IPL 13, the data analysed includes week 38, 39, 40, 41, 42, which covers 41 matches aired across 21 channels. This season of IPL began on 19 September and will culminate on 10 November. The matches are aired on Star Sports and streamed on Disney+ Hotstar.

  • Facebook ad revenue up 22% in Q3

    Facebook ad revenue up 22% in Q3

    New Delhi: Facebook has announced its third quarter results. The ad revenue for the social media giant stood at $21.2 billion dollar up by 22 per cent for this quarter. The corresponding figures for the same time in 2019 stood at $17.3 billion.

    The total revenue for the quarter also stood at $21.5 billion up by 22 per cent. The corresponding revenue for the same duration in 2019 stood at $17.6 billion.

    The net income for the quarter stood at $7.8 billion up by 29 per cent. The corresponding net income for the same duration in 2019 stood at $6.09 billion.

    The earnings per share is $2.71 up by 28 per cent. The corresponding earnings in 2019 was $2.12.

    Facebook founder & CEO Mark Zuckerberg said, "We had a strong quarter as people and businesses continue to rely on our services to stay connected and create economic opportunity during these tough times. We continue to make significant investments in our products and hiring in order to deliver new and meaningful experiences for our community around the world."

    The daily active users for FB stood at 1.82 billion on average for September 2020, an increase of 12 per cent year-over-year. The monthly active users were at 2.74 billion as of 30 September 2020, showing an increase of 12 per cent year-over-year. Family daily active people were at 2.54 billion on average for the quarter showing an increase of 15 per cent year-over-year. Family monthly active people (MAP) were at 3.21 billion for the same time showing an increase of 14 per cent year-over-year. Capex including principal payments on finance leases were $3.88 billion for the third quarter of 2020. Cash and cash equivalents and marketable securities were $55.62 billion as of 30 September 2020. Headcount was at 56,653 as of 30 September 2020 witnessing an increase of 32 per cent year-over-year.

    The company further stated that it continues to face a significant amount of uncertainty in 2021. Facebook believes that the pandemic has contributed to acceleration in the shift of commerce from offline to online, and the company has experienced increasing demand for advertising as a result of this acceleration. Considering that online commerce is the company’s largest ad vertical, a change in this trend could serve as a headwind to our 2021 ad revenue growth.

    Facebook further expects more significant targeting and measurement headwinds in 2021. This includes headwinds from platform changes, notably on Apple iOS 14, as well as those from the evolving regulatory landscape.

    There is also continuing uncertainty around the viability of transatlantic data transfers in light of recent European regulatory developments. The social media company is closely monitoring the potential impact on its European operations as these developments progress.

    It expects the fourth quarter 2020 year-over-year ad revenue growth rate to be higher than the reported third quarter 2020 rate, driven by continued strong advertiser demand during the holiday season.

  • Mohit Joshi elevated to CEO, Havas Media Group

    Mohit Joshi elevated to CEO, Havas Media Group

    Mumbai: Havas Group India has announced the elevation of Mohit Joshi to CEO of Havas Media Group with immediate effect. This appointment comes as part of the acceleration of the group's overall growth strategy.

    Prior to this Mohit was MD Havas Media Group. He will continue to report to Rana Barua, Group CEO, Havas Group India.

    Mohit’s 13+years at Havas Media Group has seen the agency grow exponentially. A seasoned media professional with 20+ years of experience in the industry, he has worked on a wide range of categories and brands. He has successfully straddled strategic planning, AOR management, buying functions and led multi-disciplinary teams across offices for the last many years. Some of the brands include Hyundai, Kia, Swiggy, Tata Motors, Voltas, Voltas Beko, TVS Tyres, Taj Hotels, amongst others.

    Mohit is a close observer of industry trends, he is a speaker and moderator at various leadership events including HT Leadership series, Media 360, ad:tech India, IAMAI, e-Tailing India, e4m Conclave, BW BusinessWorld; a judge at awards including Young Cannes, Spikes Asia; contributes to varied publications and is an advisory member of the MMA Forum India. Mohit is also in the mancom of AAAI and IAMAI and is actively involved in many other leading bodies.

    Havas Group Chairman and CEO – India and southeast Asia Vishnu Mohan said, “I have had the privilege of welcoming Mohit to Havas almost 14 years ago. A true dynamic leader with an in-depth understanding of consumers, brands, and the changing media landscape. 

    Mohit’s experience and long association with Havas makes him an ideal choice for the leadership role, as we look to significantly scale our presence in the media space.” 

    Barua said, “Over the last few years, Mohit has not just driven existing clients and business but has also played a lead role in driving the growth for the agency. He is a passionate and a visionary business leader, who brings invaluable expertise. His long-term vision coupled with his acumen will help us make a more meaningful difference to brands and consumers. I am happy that its Mohit who will leadHavas Media Group into the next phase of growth.”

    Joshi said, “In today’s dynamic and evolving business environment, Havas overall is undergoing a massive change to stay differentiated, relevant and meaningful. I’m excited to take on this huge responsibility and new responsibilities and combating the challenges during this crucial time and I look forward to the next chapter working closely with Rana, the senior management of Havas Group India, my wonderful colleagues and clients and the entire team across the region and all our global offices.”

  • Primetime : News vs TRP

    Primetime : News vs TRP

    KOLKATA: Major news channels in India have been criticised lately for turning primetime into a “farce”. The coverage of late actor Sushant Singh Rajput’s death has further tainted news media’s image, sparking the debate if they should relook at content. While some editors believe the industry needs to re-examine primetime, another section asserts they are doing it every day.

    In a panel during NT Awards 2020 hosted by Indiantelevision.com and moderated by founder, CEO and editor-in-chief Anil Wanvari, renowned Indian journalists shared their views. Times Now editor in chief Rahul Shivshankar said that editors have always been singled out for the quality of news. But of late, a lot of control has been taken away from editors on what they can play. According to him, the industry is running on an unviable business model.

    Shivshankar explained that news channels focus on TRP as it is intrinsically linked to advertising. He is of the view that if news business can be insulated from maniac TRP pressure and fluctuations, editors in the newsroom will be able to have control over the content. “The system for BARC to NBSA is very convoluted and needs to be brought down,” he added.

    India Today and Aaj Tak news director Rahul Kanwal contradicted this view. He acknowledged that there is always pressure for ratings, business, advertising, but that is no reason to sell the soul. He emphasised that it is important to believe in the stories one is doing.

    News channels have been roundly criticised for ignoring other important developing issues during the SSR incident, but Kanwal denied the charge. He said that it was not the only story covered by them and they gave equal importance to stories on the economy and the Covid2019 crisis. However, if something goes wrong, it is important to be open to fixing those mistakes, he added.

    Wion executive editor Palki Sharma Upadhyay claimed that the TRP currency is flawed and the sample size is too small. Yet, some of the channels are dictated by the system. She also echoed Shivshankar’s view that the flaw of the system can’t be blamed entirely on editors. The blame is on viewers too because they watch those shows. But she also added that editors cannot deny the responsibility that comes with the position. She is of the view that there are various ways to bring revenue other than following the TRP model blindly.

    Upadhyay also highlighted another issue that nowadays editors often follow social media agendas to decide primetime rather than applying their mind. Since the top editors themselves are influencers, they can prevent news content from turning into entertainment shows if they unite.  Moreover, anchors need to stop being overdramatic as they are the face of news programmes, she added.

    News18 India managing editor Kishore Ajwani agreed that primetime shows are identified with anchors. It is their opinion, and how they engage that leaves an impact. “I believe that all of us re-examine the prime time shows every day in all aspects – content, format, guests and others,” he said.

    “At the end of the day, it’s a screen and you have got a remote. If you do not like a story, switch the screen. No one has put a gun to your head. We do what we believe should be done,” Ajwani declared.

    Amid all the chaos, TRP and advertising have been blamed mostly for deterioration of news content. Times Now’s Shivshankar added that the channels should move to subscription led models gradually. He also noted that a huge chunk of Times Now’s revenue is coming from subscription. 

  • WPP Q3 Results: Global revenue drops by 9.8%, India down 16.3%

    WPP Q3 Results: Global revenue drops by 9.8%, India down 16.3%

    NEW DELHI: Global advertising conglomerate WPP reported a 9.8 per cent decline in revenue from last year to £2.97 billion for the third quarter ended September 30, 2020.

    The result brought the company's total revenue for the first nine months of 2020 to £8.6 billion, down by 11.5 per cent on the same period in 2019. On a like-for-like basis, Q3 revenue was down 5.5 per cent.

    The top five markets for the advertising major also did not fare well in Q3 LFL revenue less pass-through costs: US -5.5 per cent; UK -6.5 per cent; Germany -1.8 per cent; Greater China -16.7 per cent; and India -16.3 per cent.

    WPP said in a statement that it showed a resilient performance despite the challenging environment. Its results also stated there was an improvement in the second quarter with strong new business momentum and tight cost control.

    The agency bagged business of around $1.6 billion in Q3, taking the year-to-date wins to $5.6 billion. It has strong liquidity and balance sheet, supported by tight working capital management: year-to-date average net debt £2.5 billion, down £2.0 billion year-on-year. The agency is on track to be towards the upper end of £700-800 million cost reduction target.

    WPP CEO Mark Read said, “We have maintained our new business momentum as clients seek out our creativity and our skills in media, technology, data and ecommerce. This month, Uber joined a growing list of major assignment wins that includes Alibaba, Dell, HSBC, Intel, Unilever and Whirlpool, and we continue to lead the new business rankings. We have also renewed and expanded our relationship with Walgreens Boots Alliance to encompass its data- and technology-driven marketing strategy.”

    “Our people have done a superb job in serving our clients, largely working from home, but the events of 2020 have of course created new pressures for everyone. We have increased our investment in employee support services, with a particular focus on mental health and wellbeing, and this will be an ongoing priority for our leadership,” added Read.

    The conglomerate includes several global agencies such as Ogilvy, GroupM, JWT, Essence and others.

  • Maruti Suzuki clocks 1% net profit in Q2

    Maruti Suzuki clocks 1% net profit in Q2

    NEW DELHI: Maruti Suzuki India has reported a net profit of Rs 1,371, a slim growth of one per cent year-on-year for the quarter ended 30 September 2020.

    The Q2 bottom line of India's largest car manufacturer is still an improvement from a year-on-year loss of Rs 249.5 crore in the previous quarter, owing to Covid2019 related disruptions and lockdowns.

    Production across the company’s factories and supply chain was progressively ramped up, with total sales of 393,130 vehicles during the quarter, higher by 16.2 per cent compared to the same period the previous year. Sales in the domestic market stood at 370,619 units, higher by 18.6 per cent. Exports were at 22,511 units, lower by 12.7 per cent.

    During the quarter, Maruti Suzuki registered net sales of Rs 17,689.3 crore, higher by 9.7 per cent compared to the same period previous year. The operating profit for the quarter was Rs 1,167.7 crore, a growth of 71.7 per cent over the same period previous year on account of higher sales volume, lower sales promotion expenses, lower operating expenses and cost reduction efforts partially offset by an increase in commodity prices and adverse foreign exchange movement.

    The net profit in quarter two of the previous year FY19-20 was higher due to mark-to-market gains on the invested surplus and lower tax provision. As a result of this, while the operating profit increased by 71.7 per cent over the same period the previous year, the net profit increased by one per cent.

  • Pawan Soni quits National Geographic

    Pawan Soni quits National Geographic

    NEW DELHI: Pawan Soni, VP, head of programming & marketing has moved on from National Geographic. 

    At Nat Geo, Soni was responsible for overall P&L and building the network's content and marketing strategy along with overall business affairs. He spearheaded many campaigns involving various ministries dealing with central and state-level ministers while managing political sensitivities. He identified opportunities, led and built teams, improved business process flows and supervised daily operations.

    Prior to that, Soni was AVP at Fox International Channel, followed by a two year run as commercial head at Fox Networks Group Asia. He spent over 9 years at the group.

    Prior to joining Fox Channels, he worked with J Walter Thompson and Promodome Communications in his 15 year-long career.

  • Titan Company shows strong recovery rate in Q2

    Titan Company shows strong recovery rate in Q2

    NEW DELHI: Titan Company reported an 89 per cent recovery in sales in Q2 of FY 2020-21 led by sharp recovery in the jewellery division post the significant disruption caused by the Covid 19 pandemic in India in the first quarter of the fiscal.

    The total income for the quarter was Rs 4,389 crore, including sale of gold bullion to the extent of Rs 391 crore, resulting in a decline of less than 2 per cent compared to the income of Rs 4,466 crore for the same quarter in the previous year.

    The decline in total income excluding bullion sale was close to 11 per cent. The total income for the first half of the fiscal (Hl) was Rs 6,290 crore (including bullion sale of Rs 992 crore), a decline of 34 per cent against the income of Rs 9,461 crore in the corresponding period last year. The decline without considering the bullion sale was 44 per cent.

    With the lockdowns being lifted in most parts of the country, the company was able to operate most of its stores across all its divisions. Customer walk-ins have started improving even as social distancing norms remain. The recovery rate of revenue improved substantially in the quarter, with the rate being 55 per cent for the watches and wearables division, 98 per cent for the jewellery division and 61 per cent for the eyewear division.

    While the customer sentiment improved substantially in the quarter, there was greater willingness to spend on plain gold jewellery and gold coins rather than pure discretionary items, explaining the reason why the recovery rates in watches and eyewear and even studded jewellery within the jewellery division were lower.

    The jewellery division recorded an income of Rs 3,446 crore for the quarter (excluding gold bullion sales) as compared to Rs 3,528 crore last year, a decline of 2 per cent. The watches and wearables business recovered well in the quarter to record an income of Rs 400 crore against Rs 719 crore in the previous year, a decline of 44 per cent.

    The eyewear business also improved with revenues declining by 39 per cent in the quarter, recording an income of Rs 94 crore as against Rs 154 crore last year.

    Other segments of the company comprising Indian dress wear and accessories recorded an income of Rs 23 crore compared to Rs 44 crore in the previous year, a decline of 48 per cent. Consequent to the recovery, the company declared a profit before tax of Rs 238 crore, compared to Rs 429 crore in the previous year, a decline of 45 per cent for the quarter. The result is after a provision of Rs 34 crore for dues from a broker relating to commodity hedging. Despite the profit in the quarter, the company has recorded a loss of Rs 97 crore in Hl compared to a profit before tax of Rs 952 crore in the previous year.

    The jewellery division declared earnings before interest and tax (EBIT) of Rs 285 crore for the quarter compared to Rs 384 crore in the previous year and Rs 231 crore for Hl compared to Rs 826 crore in the previous year. The watch division reported a loss of Rs 4 crore for the quarter (EBIT of Rs 113 crore in the previous year) and loss of Rs 168 crore for Hl (EBIT of Rs 241 crore in the previous year). The Eyewear division turned around remarkably in the quarter with EBIT of Rs 9 crore (loss of Rs 31 crore in the previous year) and a loss of Rs 22 crore for Hl (loss of Rs 10 crore in the previous year).

    Titan Company MD C K Venkataraman said, "The recovery that the company has witnessed in the quarter has been very satisfying and the positive consumer sentiment witnessed gives rise to hope that the festive period could be good for all the divisions. The company continues to gain market share in its key businesses. The focus on cost and capital employed has helped manage our bottom line and cash flows very well."  

    The principal subsidiaries of the company also performed well. Titan Engineering and Automation Ltd (TEAL) recorded revenues of Rs 167 crore (decline of 16 per cent) and profit before tax of Rs 25 crore (decline of 19 per cent) for Hl FY 2020-21.

    CaratLane clocked a growth of 10 per cent and a positive EBIT in the quarter and ended with a revenue of Rs 194 crore (decline of 28 per cent) during Hl and a net loss of Rs 24 crore.

  • Mzaalo launches AVOD platform

    Mzaalo launches AVOD platform

    New Delhi: Mzaalo, a blockchain-based video streaming application today announced the launch of its AVOD platform. The gamified video ecosystem is designed to reward consumers for viewing content on the platform. Mzaalo's system is secured by blockchain, trusted infrastructure for content and brands to own engagement and commerce for their users.

    The AVOD platform offers consumers 50,000+ hours of premium content from over 25 content partners. The content library features a mix of Bollywood and regional movies, original series, music videos, linear television programing and more that will be available in Hindi and nine other Indian regional languages. 

    The wide-ranging content catalogue will attract users who can enjoy an immersive experience in which they can earn for watching content, interacting with the community, inviting friends as well as sharing, liking, and commenting on social media platforms. The process of watching content and being incentivized in the form of blockchain-based rewards adds to Mzaalo's credibility in building engagement, loyalty and driving growth. 

    The earned reward coins are stored in the users' digital wallets and can be spent on premium experiences, physical merchandise, partner products and services, digital goods, games, and charitable giving. Mzaalo plans to on-board established brand partners spanning across range of categories such as health & fitness, fashion, accessories, electronics, travel, wellness, and much more.

    Mzalo COO Vikram Tanna said, "Technology is increasingly becoming the centre of every human interaction. Also, brands today are adopting to innovate and engage with users by creating bespoke, experiences without disrupting the entertainment journey. Mzaalo’s consumer-centric ecosystem is the first to reward consumers for their time and attention. Moreover, our engagement algorithm is designed for advertisers to build valuable user–brand experiences based on data transparency and privacy.”

    Mzaalo has conducted consumer research across the country to understand user sentiments towards sharing personal data on various platforms and the process of selecting winners and rewarding customers. Understanding the requirement of user privacy and data protection, Mzaalo created an ecosystem that addresses consumers' needs by providing a rewarding entertainment experience in a trusted environment.  

    Mzaalo shall adopt a secured Decentralized Ledger Technology (DLT) to establish a trusted entertainment ecosystem where participants derive value from their contribution to the network. Additionally, users will be empowered to take control of their digital identity and shall be gratified for valuable behavior such as providing engagement on the platform through recommendations and for bringing peers onto it.