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Tag: Ashwin Pinto

  • ‘We plan to list at the US stock exchange to raise funds for the league’ : EFLI CEO Richard Whelan

    ‘We plan to list at the US stock exchange to raise funds for the league’ : EFLI CEO Richard Whelan

    There is a rush among sporting bodies to follow the Indian Premier League (IPL) way to build their sport. The latest to follow this route is American football.

    The Elite Football League of India (EFLI) is making an entry with its first edition ready to kick off in November 2012 in Pune. The franchise model starts with eight teams, building up to a total of 52 by 2022 representing all Indian cities with a population in excess of one million.

    EFLI will work with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket.

    Ten Sports has the rights to televise 33 games in the first season including Saturday and Sunday games as well as 13 Monday Night Football games. The league will commence its first nationally televised game beginning November 2012 and the inaugural season will run through February 2013.

    EFLI plans to list in the US stock exchange to raise funds for the league.

    In an interview with Indiantelevision.com‘s Ashwin Pinto, EFLI CEO Richard Whelan talks about the growing sports market in India.

    Excerpts:

    You have a scene where different sporting bodies are looking at leagues in India. What is the reason for this sudden push?

    India is today one of the fastest growing economies in the world. Its vast middle class population acts as the backbone of its economy. They want more than just cricket; they are today watching F1, EPL, Wimbledon and various other sporting activities. This has encouraged people to explore opportunities in the dynamic Indian sports landscape.

    When you look at the Indian sporting landscape, what is your vision for EFLI?

    Looking at the sporting scene in India today, the future for EFLI looks very bright. Games like rugby, basketball and lawn tennis have gained a strong ground in this country. Moreover, F1 and other motorsports events too are getting off the ground. The environment for sports in India is very conducive.

    Have you done any research to find out how American football is perceived in India?

    Clearly we‘ve started from scratch, and the slate couldn‘t have been any clearer for us. This has been terrific. From the early responses to our training and orientation camps, we can tell that India has a great sporting culture hitherto unknown.

    The message about the advent of American football coming to India spread virally at the ground level purely through word-of-mouth and we‘ve had a massive response with hundreds of candidates turning up for player and coach trainings. We are overwhelmed with this kind of response, and whilst we understand that we need to educate people about the sport in its entirety, the desire to want to learn is very strong.

    Indians don‘t watch much of other sports except for cricket. A few major events like the soccer World Cup get some traction primarily among males. Do you see things changing in this regard?

    We have seen some radical changes in Indian sports scenario in these recent years. As recent as two months ago, there was a report in one of the leading English Indian dailies that audience and advertising revenue are bound to multiply in the coming years and that Indians love to see American sports on television.

    It‘s fast, furious and fun to watch. They further reported that according to Tam, Indian viewers are now watching sports other than cricket. There is no doubt in our minds that the EFLI has picked the right time for its Indian touchdown. Even women are keen on watching sports!

     ‘EFLI will create legal bylaws, working with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket‘

    You start with eight franchises. How will this be scaled up?

    Economically, EFLI will have an astoundingly unmatched impact on India. The league will incorporate sponsorship from around the world and provide a platform for multinational companies to reach India‘s burgeoning retail market.

    EFLI will auction eight teams internationally. An opportunity will be created within the Indian investment banking arena to offer franchise, league and team ownership to the public marketplace. India offers enormous room for growth within the industry of sport. The US sports industry is currently valued at a half trillion dollars leading the layperson to easily recognise India‘s potential to reach beyond the scope of the American precedent.

    In order to achieve this standard, India must embrace and become a country of many sports. Football will lay the foundation and open the pathway for an explosive sports and media marketplace with reverberating impact into memorabilia and second and tertiary product sales. There is no question that, on behalf of India, football will elicit interest and participation from a broad spectrum of sporting enterprises once the door has been opened.

    What are the different revenue streams available to franchises and have you spoken to any parties for feedback?

    We are still working out these details.

    On the broadcast front, have you signed a deal with anybody?

    EFLI has signed letter of intent with Ten Sports to televise 33 games in its first season including Saturday and Sunday games as well as 13 Monday Night Football games.

    The league will commence its first nationally televised game beginning November 2012 and the inaugural season will run through February 2013.

    Could you talk about how you will partner the sports ministry to set up a governing body like the BCCI?

    We have set up EFLI, the first ever American-style Football Federation in India. This allows for the non-profit entity to work directly with the central government of India for the benefit of Indian society.

    EFLI will distribute 15 per cent of its revenue to the Sports Ministry of India to help maintain many of its ongoing programmes and facilities.

    Also, the league will forge strategic alliances by offering ownership opportunities to all Indian entities; business, military, political, municipalities, private and public partnerships. The EFLI will create legal bylaws, working with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket.

    Could you give us an idea of the investments being made and by when you expect the venture to be profitable?

    We plan to list EFLI at the US stock exchange to raise funds for the league. We are planning to raise around $10-12 million through this route. Americans know the growth story of India and want to invest in India.

    The sports business industry is untapped and they are very familiar with the power behind American football. Besides tapping the US stock market, we are also looking at the option of raising funds from private investors but at this point we have quite a few options. We also have private investors and potential debt investors for equity down the line.

    Is the initiative being done under the aegis of the NFL and do you have similar leagues in other markets?

    No, EFLI has no affiliation with NFL. It‘s a completely independent entity which was formed by people sharing a similar thought process.

    There are various other leagues which are present in the US today like the United Football League (UFL), or the Stars Football League which will begin from August 2011. Even Canada has its own football league called the Canadian Football League (CFL). Apart from these professional leagues, there are other various semi-pro and amateur leagues which are held in various parts of United States.

    Could you talk about the team and support staff behind the EFLI?

    EFLI‘s management is in the hands of a very dynamic and experienced team. We have Sunday Zeller, who is the founder of this exciting new initiative. She has worked as a marketing consultant in branding and positioning startup enterprises to help attract capital and attention for the past 22 years.

    Then we have Alex Emmanuel who is the co-chairman. He was the Tata group global VP for Human resources. He has also worked with MNCs like ABB / Boehringer Mannheim. I am the CEO of EFLI. I come from a stock broking background. I had a firm called Moveable Cubicle. I have been involved in many start-up or early stage private companies, many of which went on to become publicly traded.

    Mohan Bangera is our COO. Previously he was Videocon VP marketing and sales. He has been closely associated with sports since a long time. He is the Technical Council of Judo Federation of India Chairman. Bangera comes with 30 years of experience in this field as a player, coach and administrator.

    We also have a robust executive management team with specialists from various backgrounds coming on board with their expertise in specific roles such as corporate alliances, production, events, marketing and choreography among other important job functions.

    What are the different facets of the EFLI?

    EFLI will create an exclusively Indian product packaged perfectly and specifically to advantage television and media support ultimately to become the most valuable sports franchise in the world.

    Thousands of jobs will be created as a result of the immense need for coaches, athletes, trainers, referees, and support staff as well as the even greater demand for employees in the legal, maintenance, media, marketing and retail sectors.

    EFLI will strive to eventually support the highest paid athletes in all of India. Founding athletes and coaches will have an opportunity to become owners of the league. The league will recruit and train a team that will physically and strategically compete at the level of the current US teams, one day defeating the US in competitive play.

    EFLI will establish a grassroots educational project to incorporate the game of football in schools beginning at grade school level extending to universities which will feed the professional recruitment efforts. By introducing and supplying footballs and equipment along with the programme, the league will provide a much needed physical and intellectual stimulus through competitive game play to the male youth of India.

    What are logistical challenges you will face and what is the strategy to tackle this?

    Educating people about the game, providing them with the right kind of exercise and nutrition to be able to play the game in its true form will be our biggest challenge. And we are fully aware of this, and will do everything possible to make this best in sports entertainment.

    What is American football‘s USP from a viewer‘s perspective compared to other sports that Indians follow like cricket and soccer?

    Indian viewers have opened up to newer sporting events in recent years. Sports like rugby and badminton have gained momentum in the Indian sporting culture.

    The introduction of American football will be a new robust sport that Indian viewers can look forward to. It‘s a game which needs speed, strength and strategy. These traits will keep the viewers to their seats. It‘s a total entertainment for the viewers.

    In the US, American football has maintained its pinnacle in a competitive and fragmented market with the Super Bowl being the most watched event in the year. What are the learnings from this success that you would look to apply in India?

    When football took off in America in 1960, there was a population of 180 million people; India has 1.2 billion.

    America had 45 million TV households; India currently has 130 million and this is increasing exponentially.

    The economic strength of the United States was $520 billion; the economic strength of India is currently more than double at $1.2 trillion and growing at a blistering pace! India is without doubt an exceptionally fertile market for the immediate and overnight success of the game of football.

    Having said that, you have the disadvantage of a relative lack of awareness for American football compared to other sports in India. How will you work around this?

    We agree that there is lack of awareness towards American football in the county but people are willing to know about this game. There is a huge Indian population in America which follows American football. This trend has passed on to the Indian audience as well.

    EFLI believes that it will easily be able to capture the interest of the enormous population under the age of 30 which has shown proven interest in American form of sports. The EFLI will be branded as the “New and Cool” intelligent ultimate athlete gladiator sport and form of entertainment.

    We also believe that the top US companies with an international presence or those looking to grow their international presence in this enormous 1.21 billion population market will have a keen interest in attaching their brands to the “proven power” of this game. The EFLI will capitalise from the unbelievable discrepancy between the number of unpaid athletes in the country and the enormous potential of gross revenue football has proven to capture through television and electronic media broadcasting, merchandising and licensing revenue, ticket sales, and local and corporate sponsorship as well as future team franchise sales.

    We plan to establish EFLI as an educational project at the grassroots level to incorporate the game of football in schools beginning at school level extending to universities which will feed the professional recruitment efforts. By introducing and supplying footballs and equipment along with the programme, the league will provide a much needed physical and intellectual stimulus through competitive game play to the male youth of India.

    What new technologies have come in to enhance the viewing experience of American football?

    These aspects will be worked upon in close cooperation with our broadcaster partner. Needless to say we will offer our viewers a cutting-edge and technologically advanced viewing experience.

    In terms of global television viewership, how does American football compare to the NBA, soccer and tennis?

    American football has gained strong ground outside US. It‘s now a very popular sport in countries like Israel, Australia, Belgium, Brazil, Germany, England, Ireland, Italy, Japan, Mexico, New Zealand, Hungary, Norway and Spain. Ironically, these are the nations where soccer and rugby are a religion. In terms of viewership, the Super Bowl has a global audience of over two million – this is an impressive number.

    What role do new media like mobile and social networks play for American football in building brand equity?

    Mobile and social networks play a huge role in building a brand name for American football. These are the new platforms through which we can spread the word amongst the new generation.

    They are connected through Facebook and Twitter for news and information, which I guess is apt to promote the game. Besides, new media tools like electronic and fantasy gaming have already proven their ability to attract consumers and also rake in huge profitability.

  • ‘India is our largest revenue contributor’ : TSA Group CEO Marcus Luer

    ‘India is our largest revenue contributor’ : TSA Group CEO Marcus Luer

    As it plans to grow its business in India, Total Sports Asia (TSA) is looking at media formats that combine sports with lifestyle.

    Plotting an aggressive growth strategy, the sports marketing company has been able to double its India business year on year.

    The business in India has been divided into three verticals – media, licensing and events and sponsorship. Forty per cent of the business comes from media. Another 40 per cent comes from events and sponsorship, while licensing takes up the rest.

    In an interview with Indiantelevision.com‘s Ashwin Pinto, TSA Group CEO Marcus Luer talks about the challenges sports marketing companies face in Asia.

    Excerpts:

    How has the business grown over the last couple of years?
    In the TV rights and production business, we are physically involved in over 50 live events across the globe. We provide satellite and production service to our core properties in badminton, table tennis, squash and boxing. We own and sell major properties worldwide including BWF Super Series, ITTF Pro Tour and all other ITTF events, PSA Pro Tour, AIBA Boxing and the World Series of Boxing.

    So far as partnerships and sponsorships go, we work on both ends of the spectrum. We work directly with rights holders and help them find new partners in Asia, including major football clubs from Europe, F1 teams, US Open Tennis and ITTF Pro Tour.

    What challenges did the economic downturn pose for you?
    2008-09 were not “fun” years. We had invested heavily into new areas, manpower and had lost a big account. We stuck to our core principals and retooled certain areas of the business. We are on target to have our best year ever.

    As it plans to grow its business in India, Total Sports Asia (TSA) is looking at media formats that combine sports with lifestyle.

    Plotting an aggressive growth strategy, the sports marketing company has been able to double its India business year on year.

    The business in India has been divided into three verticals – media, licensing and events and sponsorship. Forty per cent of the business comes from media. Another 40 per cent comes from events and sponsorship, while licensing takes up the rest.

    In an interview with Indiantelevision.com‘s Ashwin Pinto, TSA Group CEO Marcus Luer talks about the challenges sports marketing companies face in Asia.

    Excerpts:

    How has the business grown over the last couple of years?
    In the TV rights and production business, we are physically involved in over 50 live events across the globe. We provide satellite and production service to our core properties in badminton, table tennis, squash and boxing. We own and sell major properties worldwide including BWF Super Series, ITTF Pro Tour and all other ITTF events, PSA Pro Tour, AIBA Boxing and the World Series of Boxing.

    So far as partnerships and sponsorships go, we work on both ends of the spectrum. We work directly with rights holders and help them find new partners in Asia, including major football clubs from Europe, F1 teams, US Open Tennis and ITTF Pro Tour.

    What challenges did the economic downturn pose for you?
    2008-09 were not “fun” years. We had invested heavily into new areas, manpower and had lost a big account. We stuck to our core principals and retooled certain areas of the business. We are on target to have our best year ever.

    Are things back to normal now or has the Japan earthquake set things back?
    Sports marketing in Asia has been back to normal since 2010, which was also a big Football World Cup year. I believe the industry has growth potential for the next 20-30 years. Of course, there will be course corrections based on global macro economic problems or more domestic issues in key markets which will affect everyone.

    On the other hand, sports marketing is still only a toddler in Asia and has plenty of years left before it reaches levels of maturity as seen in the US, Europe or Australia. Certain sports have already been developed like cricket in India. But even cricket has plenty of room to improve and grow. As powerful as the IPL is, it‘s not on the same level of professionalism as major football Leagues in Europe. For a still relatively new League, it has done incredibly well and has plenty of room to grow and improve.

    How has the business in India grown?
    The business from India has been doubling year on year. India has always been a very important market, even prior to 2004 when we set up our local subsidiary. Over the years, India has now grown to be the single largest country in terms of revenue contribution to the group.
    ‘We already have great scale in India and do very little in cricket. That just shows that there are plenty of other areas to concentrate on and grow the business outside cricket‘

    Given that India is a one sport country, what is the strategy to build scale here?
    We already have great scale in India and do very little in cricket. That just shows that there are plenty of other areas to concentrate on and grow the business outside cricket.

    We have divided the business into three verticals – media, events and sponsorship and licensing. We do six to seven events a year.

    How did you get involved with the Delhi Golf Club?
    The Delhi Golf Club made the most sense for us in terms of taking the rights for their calendar year and getting sponsors. We have got sponsors like Mitsubishi Motors and China Tourism. The other option is to do a one off event like everyone else. We did not want to get into a crowded space.

    How are you going to get involved with the F1 event here?
    In F1, our focus is on the teams and only occasionally we work with the local races.

    I do believe that F1 viewership and general interest in the sport will dramatically grow in India over the next three-five years. I saw it first hand in Malaysia where F1 was unknown to the general public prior to the first race in 1999; now everyone seems to be an expert. I have no doubt that F1 will have a similar success in India. It‘s an amazing product and even more exciting to watch live than on TV.

    Once Indian corporations have a chance to see the F1 spectacle live, they will get the idea pretty quickly on how to leverage the power of it in the local market and even worldwide.

    In India what work are you doing to grow soccer?
    We have worked with several clubs including Churchill Brothers to help them grow their commercial revenue streams. We had partnered with CAA to bid for the rights, which now are handled by IMG/Reliance. So we were ready to invest considerable resources into the sport, but unfortunately came up a bit short.

    We are seeing sports bodies and agencies making a bigger push in India. WWE just set up an office here. IMG Reliance is doing work to push sports. How will all this activity benefit the sports marketing environment here?
    It clearly will grow the size of the pie,,there is no doubt about it. Just like Cricket, there are several other sports which have good growth potential. It has happened all over the world and will happen here as well. Clear second tier sports will emerge and will develop their own niche and space.

    Growth will be led by new star players emerging in certain sports; the 2012 Olympics will particularly unearth new talent. Sports will be driven by corporations seeking new ways to reach consumers and being driven or prized out of cricket.

    Are you looking at the possibility of a JV in India like what IMG has done with Reliance?
    We are always open to team up with powerful partners.

    In terms of leveraging their brands, to what extent is digital becoming important for sports federations and sports marketing agencies?
    The digital world is a huge opportunity for sports in general. Niche sports can now deliver their content directly to their fan base without having to rely on the big sports platforms or channels.

    At the same time, sports is the only true “appointment TV” and, therefore, will continue to drive pay TV and other traditional media platforms as it caters to huge audiences — “live”.

    The only difference is sports, where it is all about live experience; no one will tape a crucial match of their favourite team, player or sport. People make “appointments” to watch it live; the delivery mechanism and the viewing experience might change but not the desire to see it while it unfolds. That‘s the true power of sports.

    What progress has your online streaming service Total Sports TV made since launch?
    It‘s an on-going case study into the digital world for us. We don‘t claim to have found the ultimate solution yet — but it gives us exposure into a new fast developing area and will lead to new business opportunities down the line.

    How is Total Sports Asia planning to get involved with the 2012 Olympics?
    I assume that the economic impact in Asia will be much smaller compared to 2008. We are working with several companies who are major Olympic sponsors and helping them with marketing and leveraging ideas and implementation across the region.

    I believe the London Olympics will be big in Asia, because of the host city itself. Beijing was unique in many ways and might not be topped in terms of the sheer scale and size. But I have no doubt that London will set new standards in many other ways. Overall, the Olympics will definitely grow in Asia and we will see more and more global sponsors trying to take its advantage by making it locally relevant.

    What are the new technologies coming up here that are enhancing the viewer‘s experience?
    Our racket sport production business is growing dramatically this year. We have brought in many innovative ideas such as speed guns and virtual technology to enhance the viewer experience. We are also aiming to provide fans with new data and info about their sport.

    We will continue to work with our Federations to push new technologies and ideas, while making it commercially viable at the same time.

    Sports marketing in Asia has been back to normal since 2010, which was also a big Football World Cup year. I believe the industry has growth potential for the next 20-30 years. Of course, there will be course corrections based on global macro economic problems or more domestic issues in key markets which will affect everyone.

    On the other hand, sports marketing is still only a toddler in Asia and has plenty of years left before it reaches levels of maturity as seen in the US, Europe or Australia. Certain sports have already been developed like cricket in India. But even cricket has plenty of room to improve and grow. As powerful as the IPL is, it‘s not on the same level of professionalism as major football Leagues in Europe. For a still relatively new League, it has done incredibly well and has plenty of room to grow and improve.

    How has the business in India grown?
    The business from India has been doubling year on year. India has always been a very important market, even prior to 2004 when we set up our local subsidiary. Over the years, India has now grown to be the single largest country in terms of revenue contribution to the group.
    ‘We already have great scale in India and do very little in cricket. That just shows that there are plenty of other areas to concentrate on and grow the business outside cricket‘

    Given that India is a one sport country, what is the strategy to build scale here?
    We already have great scale in India and do very little in cricket. That just shows that there are plenty of other areas to concentrate on and grow the business outside cricket.

    We have divided the business into three verticals – media, events and sponsorship and licensing. We do six to seven events a year.

    How did you get involved with the Delhi Golf Club?
    The Delhi Golf Club made the most sense for us in terms of taking the rights for their calendar year and getting sponsors. We have got sponsors like Mitsubishi Motors and China Tourism. The other option is to do a one off event like everyone else. We did not want to get into a crowded space.

    How are you going to get involved with the F1 event here?
    In F1, our focus is on the teams and only occasionally we work with the local races.

    I do believe that F1 viewership and general interest in the sport will dramatically grow in India over the next three-five years. I saw it first hand in Malaysia where F1 was unknown to the general public prior to the first race in 1999; now everyone seems to be an expert. I have no doubt that F1 will have a similar success in India. It‘s an amazing product and even more exciting to watch live than on TV.

    Once Indian corporations have a chance to see the F1 spectacle live, they will get the idea pretty quickly on how to leverage the power of it in the local market and even worldwide.

    In India what work are you doing to grow soccer?
    We have worked with several clubs including Churchill Brothers to help them grow their commercial revenue streams. We had partnered with CAA to bid for the rights, which now are handled by IMG/Reliance. So we were ready to invest considerable resources into the sport, but unfortunately came up a bit short.

    We are seeing sports bodies and agencies making a bigger push in India. WWE just set up an office here. IMG Reliance is doing work to push sports. How will all this activity benefit the sports marketing environment here?
    It clearly will grow the size of the pie,,there is no doubt about it. Just like Cricket, there are several other sports which have good growth potential. It has happened all over the world and will happen here as well. Clear second tier sports will emerge and will develop their own niche and space.

    Growth will be led by new star players emerging in certain sports; the 2012 Olympics will particularly unearth new talent. Sports will be driven by corporations seeking new ways to reach consumers and being driven or prized out of cricket.

    Are you looking at the possibility of a JV in India like what IMG has done with Reliance?
    We are always open to team up with powerful partners.

    In terms of leveraging their brands, to what extent is digital becoming important for sports federations and sports marketing agencies?
    The digital world is a huge opportunity for sports in general. Niche sports can now deliver their content directly to their fan base without having to rely on the big sports platforms or channels.

    At the same time, sports is the only true “appointment TV” and, therefore, will continue to drive pay TV and other traditional media platforms as it caters to huge audiences — “live”.

    The only difference is sports, where it is all about live experience; no one will tape a crucial match of their favourite team, player or sport. People make “appointments” to watch it live; the delivery mechanism and the viewing experience might change but not the desire to see it while it unfolds. That‘s the true power of sports.
     

    What progress has your online streaming service Total Sports TV made since launch?
    It‘s an on-going case study into the digital world for us. We don‘t claim to have found the ultimate solution yet — but it gives us exposure into a new fast developing area and will lead to new business opportunities down the line.

    How is Total Sports Asia planning to get involved with the 2012 Olympics?
    I assume that the economic impact in Asia will be much smaller compared to 2008. We are working with several companies who are major Olympic sponsors and helping them with marketing and leveraging ideas and implementation across the region.

    I believe the London Olympics will be big in Asia, because of the host city itself. Beijing was unique in many ways and might not be topped in terms of the sheer scale and size. But I have no doubt that London will set new standards in many other ways. Overall, the Olympics will definitely grow in Asia and we will see more and more global sponsors trying to take its advantage by making it locally relevant.

    What are the new technologies coming up here that are enhancing the viewer‘s experience?
    Our racket sport production business is growing dramatically this year. We have brought in many innovative ideas such as speed guns and virtual technology to enhance the viewer experience. We are also aiming to provide fans with new data and info about their sport.

    We will continue to work with our Federations to push new technologies and ideas, while making it commercially viable at the same time.

  • ‘We are now in a very strong position to overcome any new challenges in the Indian marketplace’ : WWE International executive VP Andrew

    ‘We are now in a very strong position to overcome any new challenges in the Indian marketplace’ : WWE International executive VP Andrew

     

    Earlier this year to better reflect its business, World Wrestling Entertainment rebranded as WWE. Among other things, it is looking to develop new television products including scripted, non-scripted and animated programmes as well as the launch of a new WWE Network in the next 12-18 months.

     

    Recognising the importance of India, the company this month set up an office here with Rukn Kizilbash as its head. The company has a strong association with Ten Sports and is also exploring possibilities of putting its content on regional channels.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, WWE International executive VP Andrew Whitaker talks about the company‘s growth plans in India.

     

    Excerpts:

    You recently opened an office in Mumbai. Given that this is an important market, why did it take so long?
    India has been one of our most successful television markets for a number of years now. In line with our global strategy, since we have begun to introduce our other lines of business, the time is now right to begin building a more local presence in the market. The Mumbai office is the first step of that process.

    Could you talk about the opportunities and challenges that you will face in India?
    With our new Mumbai office and Rukn Kizilbash in place as general manager India, as well as our strong TV penetration with Ten Sports and other lines of business, we are now in a very strong position to overcome any new challenges in the marketplace.

    We have an extremely loyal and extensive fan base in India and are highly confident about the opportunities open to us in this important market.

    How have you built upon the relationship with Ten Sports?
    Ten Sports is pivotal to our success in the market. We deliver fresh original content 52 weeks of the year and are able to provide new content to meet with the growing demands in the market. The promotional strategy we deploy with Ten Sports includes implementing regular local consumer promotions and bringing WWE Superstars to market every year.

    Are you talking to regional channels regarding having your content being seen there?
    We are working with Ten Sports to see if we can make some content available on regional channels.

    Live events will play a big role in terms of growing the fan base here. What can we expect?
    We have held live events in India in the past and I think this is something we will consider for the near future.
    “We are working with Ten Sports to see if we can make some content available on regional channels”

    You now have a talent development department. Is India going to be a part of this?
    We have seen a number of non-American talent prosper within WWE, from The Great Khali to Rey Mysterio and more recently Alberto Del Rio, Sin Cara and Sheamus. In fact this year we signed a new talent from India, Jinder Mahal.

     

    This success indicates a significant appetite and opportunity for us to actively recruit international talent and it is an area we will continue to invest in across all markets, including India.

    How have you grown the studio side of the business over the past couple of years?
    From 2010 through 2012 we have a full slate of nine movies, four of which have been released so far. These are ‘Legendary‘, ‘Knucklehead‘, ‘The Chaperone‘ and ‘That‘s What I Am‘.

     

    We have successfully deployed a deal by deal model which allows us to achieve structural efficiencies per movie. This model has seen our movies released through multiple platforms around the world including theatrical, home video, pay-per-view, VOD/Pay TV and Free TV. The remaining releases for this year include ‘Inside Out‘ and ‘Family Reunion‘.

    Is there a chance of doing a film co-production in India?
    It‘s certainly something we may consider. We enjoyed a successful partnership last year with Viacom whereby one of our top WWESuperstars, The Great Khali came runner up on Bigg Boss.

     

    There are a number of parallels to be drawn between WWE and Bollywood and we see great opportunities for us in this area.

    What strategy has WWE followed to grow the brand globally over the past couple of years?
    Our global growth strategy on a market by market basis is first to bring WWE‘s television programming into the marketplace, which is usually the starting point to begin engaging fans and bringing our unique form of entertainment into people‘s homes. Once we have established a strong television audience, we then look to introduce our other multiple lines of business, from live events where fans can see our Superstars live and in person to our vast lines of consumer products, digital media and publishing.

     

    WWE is a global business, seen in more than 145 countries in 30 different languages, and key to our successful global growth is our local office presence. We have offices in Stamford, New York, Los Angeles, London, Shanghai, Singapore, Tokyo and now Mumbai, which are fundamental to our local level operations.

    Has there been any change in terms of how fans in India and globally perceive WWE?
    I think that our fans have always understood that WWE is fundamentally an entertainment business. In India our partnerships with the likes of Ten Sports, Sify and Mattel provide our fans with multiple brand touch points across TV, online and consumer products and our fans have responded well to our evolution and growth as a family-friendly integrated entertainment business.

    To what extent has the share of revenue from international markets grown? Which are the top three markets?
    When we set up our first international office in London in 2002, international revenues were worth $32 million. That figure has now grown to over $133 million.

     

    Outside of the USA and Canada, our biggest markets are the United Kingdom, Mexico and France.

    In terms of your various divisions, which has shown the healthiest growth and why?
    Internationally, our television business continues to grow and remains our most profitable division. We have also expanded our global live events business, now scheduling more than 70 international live events on an annual basis.

     

    Since 2006 international consumer products revenue has doubled, meaning that the retail brand value of WWE now exceeds $1 billion per year globally.

    In terms of the new business model, which are the key focus areas?
    There are two key components to WWE‘s recently announced brand expansion plans. First, the company will maintain a strong focus of growing its core business on a global basis and announced that Paul “Triple H” Levesque will be heading a new talent development programme.

     

    In addition, innovation will be the key to the long term growth through new consumer product launches, new television programming and international growth.

     

    The second component will be the active pursuit to acquire entertainment content companies and the outsourcing of WWE‘s core competencies – television and film production, live event production and licensing.

    What targets has WWE set for this year?
    Internationally, our focus continues to be on the Bric markets on the back of our recent TV launches with 2×2 in Russia and EI in Brazil and the growth of our already established business operations in India and China.

     

    As mentioned above, our new talent development department will be another key focus for us in 2011.

    What growth has there been in terms of doing international tours and holding ‘Raw‘ and ‘Smackdown‘ abroad?
    As I mentioned above, we operate over 70 live events internationally each year and are continuously exploring potential new live event markets. In the last five years, we have held live events in 35 different countries.

     

    To date, we have taken our Raw and SmackDown TV events that you mention to three markets outside of the USA and Canada – the UK, Japan and Italy – and in May of this year we announced that in October 2011 Mexico will become our fourth international market to host our Raw and SmackDown TV events.

    You recently rebranded as WWE. What was the aim?
    WWE is constantly evolving and this is simply the next step in that evolution to provide a ‘bigger, badder and better‘ – as we say in our advertising campaign – entertainment product for our fans.

    There has been talk about mixed martial arts and boxing now providing more competition for your viewership globally. I would appreciate your take on this?
    We don‘t view MMA or boxing as competitors for our viewership globally. Their product is completely different to WWE. Whilst they may borrow from various elements of WWE‘s production to entertain their own fans more, what they provide is a pure sporting spectacle.

     

    We view our competition as any live or televised family entertainment event.

    You have stars of the past returning briefly like Bret Hart. Is the aim to reinforce WWE‘s brand value?
    We are fortunate enough to have an extremely loyal and diverse fan base on a global basis, spanning all ages. As such, WWE has the ability to bring back stars of the past and feature them in programming from time to time, thereby creating both nostalgia and new storyline angles.

    What role is the global tie up with Mattel playing in growing your licensing and merchandising business?
    With Mattel, the number one company in toys, WWE has enjoyed impressive growth in its toy revenues. Mattel‘s distribution footprint is unrivalled.

     

    Allied to the reality of reaching more fans and customers in more countries is Mattel‘s innovation of various WWE lines.

     

    New play patterns in the action figure segment as well as bringing genuine scaling mean the current line of action figures are as accurate and detailed in their depiction of WWE Superstars than ever before.

    How are you growing the consumer products business in India?
    We have announced our appointment of the specialist licensing agency Dream Theatre to undertake the task of developing a scaled up programme of branded consumer products.

     

    Local licensees in apparel, footwear, stationery, publishing, magazines, nightwear, underwear and novelties are due to be added over the next two years to compliment the efforts of Mattel, THQ and Topps. We anticipate direct to retail tie ups and traditional licensees representing WWE‘s business as it continues its efforts to grow distribution as India‘s retail landscape continues to change and mature.

     

    Piracy is a big concern especially in markets like China. How are you tackling this issue?
    WWE is actively engaged in minimising the impact of piracy and counterfeit products on its businesses. We have a robust and mature trademarks registration and protection policy.

     

    The company takes down sites in real time that illegally stream WWE‘s PPV‘s, which otherwise represent a significant segment of annual revenue. The company also ensures that it seizes all counterfeit goods and legally challenges those companies and individuals found guilty of their manufacture and distribution.

     

    Piracy is a problem all over the world and cheats fans of genuine articles. It is a cost burden for brands and limits the investment being made in new lines for those consumers purchasing the genuine and authentic branded products. We are committed to continuing to do our utmost to protect our IP in every country.

    How is WWE expanding its presence in the digital space?
    WWE has seen 1,000 per cent growth over the last year in worldwide fans to our Facebook pages. We are currently working with Sify, our web partner in India, to create a WWE branded Facebook page with a few simple but powerful goals in mind:

    To build a direct connection with our fans in the local market, create awareness of our local site (wwe.in), encourage brand loyalty through special offers and promotions, and give fans the opportunity to connect and share their passion for our brand with other fans.

     

    Could you shed light on how social networks are changing the equation between WWE and its fans?
    The way I see it, the rapid adoption of social networks gives a large amount of power to the fan. It is less about “selling” and more about engaging with the fans. WWE is taking a more editorial rather than a promotional approach with social networks. The key is to use social networks to entertain and inform while subtly marketing to fans.

     

    Are the social networks allowing you to change course and take corrective action quicker?
    Absolutely! social media gives us immediate feedback to everything we do as a company.

     

    We have Facebook pages for many of our products from the WWE Superstars to our merchandising and the information we receive is shared directly with our creative and editorial teams. Social media feedback is key to our future initiatives.
  • ‘The challenge is to differentiate in a cluttered market’ : HDFC Life executive VP marketing and direct channels Sanjay Tripathy

    ‘The challenge is to differentiate in a cluttered market’ : HDFC Life executive VP marketing and direct channels Sanjay Tripathy

    HDFC Life‘s advertising spend will stay flat this year as it seeks to turn profitable for the first time.

     

    The insurance company, which ranks No. 4 among the top 10 advertisers in the category in terms of ad volumes, is looking to spend more judiciously and utilise a 360 degree approach to reallocate money across new mediums like digital and OOH.

     

    While 70 per cent of HDFC Life‘s marketing spend goes towards above the line, 50 per cent of this goes towards television. On television, HDFC uses news and sports for advertising as it fits into the 25-45 male target audience.

     

    Print, radio and OOH play a supportive role. HDFC Life has also started using social media to engage the youth.

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, HDFC Life executive VP marketing and direct channels Sanjay Tripathy talks about how insurance companies need to differentiate in a cluttered market and build a brand equity that includes the youth.

     

    Excerpts:

    Why did HDFC Life go in for a brand makeover last year?
    We did a brand equity study as we wanted to see where our brand is and how it is faring versus competition. We had last done a similar study way back in 2005. We wanted to see the changes; we wanted to know how through our cmmunication and marketing activities the brand had progressed in people’s minds.

     

    Consumers found the brand ethical and the service value was strong. Then we asked about the areas where they felt the brand could be improved upon. They wanted it to look like belonging to the same HDFC family; they felt that the brand could look more modern and dynamic.

     

    Indian consumers are getting younger. People work in areas like BPO and they look at life insurance at an early age. A person buys their first insurance product between 23-28 years of age. As a brand, we wanted to attract the youth towards our products; we needed to be in the youth segment. We spoke to our board and got a favourable response.

     

    Also, the word standard only conveyed the basic level of facilities; it was not giving the message of Standard Life being an international brand. We wanted to be seen as being a customer centric brand. Through the rebranding, we wanted customer centricity to come out more strongly for us. The new logo represents a youthful, energetic HDFC brand.

    How do consumers perceive HDFC Life as a brand compared to the competition?
    Our awareness has gone up by 30 per cent over last year. Our communication has been well accepted.

    When marketing to consumers, what challenges do insurance companies like you face?
    The market is cluttered. There are over 23 players. The challenge is to differentiate and ensure that consumers can see your service offerings and products.

     

    We need to be seen as having products that are more consumer friendly; the challenge is to see that the consumer understands your brand and products.

    How do you build and leverage brand equity in the insurance category which is getting more competitive?
    We started six years back to find out why consumers buy insurance. We found that they bought it as they do not want to depend on anybody else; they want insurance for self respect. They do not want to depend on their parents; similarly, the parents do not want to depend on their children. This is how the thought for our campaign came about which is – Sar Utha ke Jiyo. We positioned our brand under the ‘self respect’ motive.

     

    Over time, we took the thought of Sar Utha ke Jiyo across our platforms – be it for children, pension, youth or home loan cover. It gives you a long term solution for pressing needs and self respect. Insurance operates in a long term savings plan; investment in insurance has to be linked to a long term need. This is what we have focussed on and have built consumer segments.

    To what extent will your marketing budget go up for the year?
    We are maintaining a similar spend as last year. This is the first year we are trying to become profitable. We are looking to spend more judiciously and utilise a 360 degree approach to reallocate money. New mediums have come in like digital and OOH. The aim is to make a more judicious mix of mediums available.
    “Our ad spend will stay flat this year. We are looking to spend more
    judiciously and utilise a 360 degree approach to reallocate money. New
    mediums have come in like digital and OOH”

    To what extent was this category affected by the economic downturn in terms of sales and marketing spends?
    New companies are spending heavily. Some of the older players who want to go for a public listing and want to make marketing money work harder are keeping a check on their spending. Spending in this category went down by around 20 per cent during the downturn.

    Which marketing vehicle is the most effective for you – print, TV, radio, online?
    Seventy per cent of our marketing spend is for above the line activities; fifty per cent of this goes towards television as it is the most effective medium for us.

     

    As we are present in over 700 cities, television offers a more cost effective reach. It provides an emotional touch point. You can link the customer with your brand and emotional thought. You can explain your concept in a situation linked to his day to day life.

     

    Print, radio and OOH play a support role. We have started using social media more to engage the youth.

    Which genres do you use on television?
    News and sports for TG 25-45 males works. Apart from cricket, we also do on-air sponsorship of Euro, Fifa World Cup and Wimbledon. We also spend on regional news and regional entertainment; they are pretty big for us.

     

    The aim is to get the top-end audience in metros and mini metros. The cost of contact may be high but cost of impact and cost to the top-end segment is less compared to other vehicles. This is the most profitable customer segment for insurance.

    Do you advertise heavily only during the end of the financial year?
    We advertise across the year. Our IPL campaign is running at the start of the fiscal. When schools open, we can run a ‘Children Plan’ campaign. Advertising in the insurance category has moved from just being end of the year to being more spread out.

    What about the festive time?
    Advertising at that period does not work. People think about spending and not about saving. It could be a counter campaign to do it in Diwali; this has not worked in the past.

    Do you use brand ambassadors?
    No! HDFC Life is a product for the common people. The thought is powerful when you connect to people; they want to see communication where people like them are investing rather than seeing somebody who does not need life insurance but is still talking about it.

    What campaigns have been done recently?
    The last campaign was a rebranding one. You don’t need to spend Rs 3-5 billion for this if you realise the core thing that you need to convey. It is not that overnight you have to change every single collateral and signage. The consumer has to be convinced that your rebranding is actually being delivered on the ground; they look at rebranding more in terms of on-ground delivery rather than on just an image or a design change.

     

    We also did a children’s plan campaign. We used more persuasion which was different from what was done earlier. We explained that while the child is doing fine, seats are limited and competition is severe. Parents need to plan properly; it will help the child reach that goal and get into the institution they like. The aim is to make a parent see that while things are happening normally, they still need to do something.

    As a platform, how has the Rajasthan Royals deal worked out for you?
    We look at associations where there is a good brand fit. In case of Rajasthan Royals, while Shane Warne is the captain, ordinary Indian players who people might not have heard of are given a platform. Warne helps them think like winners. If you look at the premise of believing in yourself, this goes well with our tag line ‘Sar Uthake Jiyo’.

     

    As a team they support youth and some of them have started playing for India. Shane Watson’s career also got revived with this team. It helps youth to think that they can beat world beaters.

    In terms of activation with that IPL franchise, what innovations did you do this time around?
    We brought a social angle into our activities for the home games. We used to take employees and distributors to meet players. We also used players for ads. We gave fans the opportunity to get tickets to enjoy the match and spend time with the cricketers. We took fans for the toss. This was run on Facebook. We also gave tickets to underprivileged people.

    Last year the franchise got into trouble with the BCCI. Did that force you to temporarily change tack in terms of your campaign?
    Not really! The IPL was over by the time these issues came up. The team management kept us informed about the steps they were taking and why they believed that they were in the right. They said that there were no issues and kept us in the loop all the time. We have a one year deal with them.

    Rajasthan Royals has not fared well during the IPL. Are you concerned at any negative brand rub off for HDFC Life?
    No! For a while, they were in the top rung of the points table. You have to look at the core strength of the association rather than one off wins or losses. The youth looks at ‘Sar Uthake Jiyo’ in a different light. The team has more youngsters compared to the previous year. So we came up with the tag line ‘Sar Utha ke Jeene ka Naya Andaaz’.

    How many campaigns do you do in a year and are there new audiences that you have started to address?
    We will do four to five campaigns and are looking at new audience segments. We have done a lot of research on this.

    The rural areas have a lot of potential but the marketing vehicles that work in the major metros might not work there. So how do you connect with those consumers?
    More than just marketing, the basics of the business have to be in place. Insurance is a long term business – and you need to understand the rural area. We do pilots to understand the rural area much more; this has multiple models that have to be run simultaneously.

     

    You need partners like microfinance institutions so that you can reach out to them in a much more cost effective manner. The rural areas consist of the rural rich and poor. You need different products for them while their aspirations are similar.

     

    We are trying to do partner marketing at the moment. We do below the line activities with partners who have the trust factor in that area. The aim is to make the brand relevant and differentiated at a local level. We do things like street plays. We need somebody to carry the message and explain it. That is why below the line activities are important.

    Could you give me examples where experiential marketing has worked for you?
    We do ‘Spelling Bee’ in 35 cities. Children in classes six to nine participate. We have 300,000 children and over 1500 schools taking part. It allows children to understand things like vocabulary and sentence formation. Parents encourage children to do this. It is a good engagement activity. Parents are also engaged in terms of helping the child spell correctly.

     

    Somewhere your brand rub off is also very high. The parent thinks that HDFC Life has brought a competition which they want their children to participate in. Consumer engagement is key for our category. The consumer should keep engaging with you over a longer period of time. What we are seeing is that people buy five to six insurance products over a lifetime.

     

    People like a brand but the decision may be deferred. I need to stay engaged constantly. I may create an engagement now, but later you may buy competition. The engagement has to be done through different methods. That is why we look at a 360 degree approach.

    Could you talk about the growing importance of OOH for you?
    This has really increased. In metros and mini metros, consumers spend time out of home. TV viewing time has come down. There is innovative media available. Obviously, hoardings have been there for a long time. Airports and stations have OOH media. You have to figure out how you can catch your TG when they spend time away from their home.

    But isn’t lack of measurement a problem?
    This is why it is a support medium. If you utilise it for the right reason and use it to support the main communication, it works well. As a support medium, it gives good ROI. OOH always complements the TVC. I can measure ROI better that way.

    Do you address women?
    In India, most homes have a single income. The male is the breadwinner; women in the working segment are still small and their needs are similar to working men. Their media consumption is similar. The campaign for men works for them also.

     

    We addressed upwardly women through an endowment plan campaign. The only segment that is different from men is the unmarried working woman. Other categories for women are similar to men; so I do not need to do a separate campaign for them.
  • “We will be looking into more original productions that are local and relevant to Indian audiences” : Sony Pictures Television SVP, GM, Networks Asia Ricky Ow

    “We will be looking into more original productions that are local and relevant to Indian audiences” : Sony Pictures Television SVP, GM, Networks Asia Ricky Ow

    Sony Pictures Television is on a major expansion course in Asia. It has widened its portfolio with the launch of a new channel, ONE. AXN HD has also launched in several markets.

     

    The key strategy is to up localisation in language, on-air presentation and local original production so as to make the channels more relevant.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Sony Pictures Television SVP, GM, Networks Asia Ricky Ow elaborates on the company‘s brand positioning, growth, challenges and expansion plans.

     

    Excerpts:

    How would you describe the performance of SPE Networks Asia over the past couple of years?
    The past few years have been rather busy ones for us at SPT Networks Asia. Not only have we maintained AXN as the No. 1 English general entertainment channel (GEC) in our key markets in the face of increased competition, we have also launched AXN HD services in several markets.

     

    In addition, we have expanded our portfolio by entering the Asian GE content space with the launch of our new channel, One. In a nutshell it has been a good couple of years with strong growth and expansion.

    What are the priorities and key strategies for it going forward?
    The key priorities for us moving forward are expanding our Asian content offerings and gaining a wider share of the audience by increasing localisation in language, on-air presentation and/or local original production to increase relevance of our channels.

    To what extent was the company affected by the economic downturn?
    The impact was not as great as we initially feared because pay-TV in general is relatively resistant to economic downturns. This is because during such periods, consumers actually spend more time at home and watch more pay TV.

     

    While there was some loss in ad sales momentum, it was nothing too drastic. We have always had a strong culture of prudence and the downturn actually provided us a great opportunity to further build our brand and engage our audiences by revisiting some of the basics in how we connect with them.

    Are things back to normal now or are some Asian markets still feeling the impact?
    Things went back to normal very quickly in Asia. Many economies are experiencing good growth and there is a strong momentum at this point in time.

    How has SPE Networks Asia grown the number of feeds over the past couple of years?
    We now operate five linear pay TV channel brands (AXN Asia, Animax Asia, SET, AXN Beyond and One) and a total of 17 feeds.
    “There is the opportunity to grow our business in India, but we are unable to comment on whether we are launching new channels in this marketplace right now”

    Could you talk about the growing importance of HD for SPE?
    HD is obviously the new standard for broadcast TV. We have seen huge penetration of HD TV sets in many markets, some more than others. This will be the de facto standard in a few years time.

     

    AXN is a channel brand that is very relevant to early technology adopters and we have already launched AXN HD in Korea and several Southeast Asian markets. We have plans to bring it to India as well.

    When he was in India, Sir Howard Stringer mentioned the importance of 3D for Sony. What role will this technology play in your broadcast business in the coming two to three years?
    3D is key to the SPT business globally and there is already an HD content channel launched in the US named 3net. We will explore how we can bring that channel to Asia.

    The last time we spoke you had mentioned revenue leakage from piracy being a concern. Is the growing digitisation in India addressing this problem?
    Leakage has been and continues to be a concern in many Asian markets. Digitisation and the efforts of industry bodies will help to address the problem. But it will take time and there seems to be no simple solution.

    There are synergies that exist between the broadcast business and other business verticals of Sony in India and across Asia. Could you talk about how this area is being exploited?
    One great example of this is Sony Style. It is a lifestyle and gadget magazine programme that is not only highly entertaining, but also showcases the great breadth and depth of Sony offerings to consumers ranging from movies, TV, games, music and electronic gadgets.

    We are seeing more players enter the English GEC space in India after a long time when there have been just three players. What impact will this have?
    We believe that competition can lead to two outcomes. The first is the rising cost of English GE programming, which is something that everyone has to watch out for. In addition, there will be improvement and increased excitement for English GE content. Increased competition is not necessarily a zero-sum game.

     

    With greater competition and more choices, the overall English GE viewership can expand and everyone wins.

    From a programming perspective is AXN‘s template going to stay the same or are you looking to innovate?
    The AXN formula is a winning one and we do not see the need to change it. However, it is necessary to continuously innovate within the channel brand parameters to bring AXN closer to viewers in India.

     

    An example comes in the form of AXN‘s Minute to Win It for India, which serves to localise the entertainment experience on the channel and make the content more relevant for Indian audiences.

    Other English channels have introduced subtitling. Is AXN also doing this?
    AXN currently airs programmes with English subtitles for the benefit of viewers who might face difficulty deciphering words spoken with different accents in shows.

    With CBS having launched channels in India, how will this affect deals you do with them? Will new seasons still be available?
    We are unable to disclose or discuss any contractual terms agreed with CBS. But viewers can rest assured that top shows such as the CSI franchise will continue to broadcast first and exclusively on AXN in Asia.

    On the localisation front, how has the response been to Minute To Win It India‘?
    In India, AXN‘s Minute to Win It is in its debut season and has had a relatively slow start. The show is gaining audiences and is doing well on the whole. There is definitely room for improvement and we have high expectations of the show.

     

    We are glad that Indian viewers have readily come forward to offer their honest feedback on Minute to Win It, without our having to ask. This points to real excitement and following for the show and format. We will be taking some of the suggestions to make Minute to Win It even better next season.

    What is next on the local front?
    We will be looking into more original productions that are local and relevant to Indian audiences and ones that can differentiate our channels from the competition..

    You devised a social media strategy to push this show. How effective is social media in communicating AXN‘s brand message?
    Social media is especially useful not just in ‘pushing‘ AXN‘s brand messaging but more so in engaging viewers and receiving their feedback. It has been an excellent experience getting a feel of the passion of viewers who have offered their opinions of the show. Going forward, we will definitely leverage social media more.

    Social media means that brands lose control to an extent in terms of how information filters down and is disseminated to the consumer. That makes some companies insecure. How does SPE Networks Asia view this medium?
    I believe the reactions of consumers cannot be controlled no matter which medium of information is shared through. We believe in facing up to audiences‘ tastes, preferences and reactions, as we are serving them after all.

     

    If responses received are negative, then we know we have to improve. Vice versa, if feedback is positive and we can continue in the direction which we know is right. We are never afraid of negative reactions and welcome all feedback.

     

    Only when viewers engage with our channel brand do we understand them better and social media has enabled us to do this like never before and we will continue using it.

    How is AXN perceived as a brand by viewers and advertisers? Has the perception changed over the past few years?
    The perception of AXN as Asia‘s home of Action and Adventure has remained strong and the channel continues to be a premium brand in the marketplace with an extensive reach across the region.

     

    However, the definitions of ‘Action‘ and ‘Adventure‘ have probably evolved over the years. As audiences have grown increasingly sophisticated and mature in their choice of content, ‘Action‘ and ‘Adventure‘ may no longer be the same hard-boiled, head-on action in AXN programmes of yesteryear.

     

    Instead, we find viewers embracing values such as courage, determination and irreverence embodied by key characters of popular AXN shows such as the CSI franchise, NCIS: LA, Leverage and Justified. This is also true when you consider the great support and following for local heroes from across the region who embark on the race of their lives in AXN‘s original production, The Amazing Race Asia.

    What work has been done in the new media area by SPE Networks Asia in other Asian markets like Taiwan and Korea and what have the learnings been?
    Online content from AXN‘s The Amazing Race Asia has been available to consumers across Asia and we have even launched the first episode of the most recent season online prior to its premiere broadcast. We are very encouraged that it has not cannibalized viewership but has instead grown the base of fans in the region.

     

    For SPT Networks Asia, we operate the Animax Mobile 3G streaming service as well as online catch-up TV for selected channels and programmes in various markets. We have found that these work for the youth who tend to be more active online and on mobile.

    Is SPE Networks Asia going to launch more channels in India like AXN Beyond with digitisation growing?
    There is the opportunity to grow our business in India, but we are unable to comment on that right now.
  • ‘India’s diversity makes distribution a big challenge’ : Brandscapes CMD Pranesh Misra

    ‘India’s diversity makes distribution a big challenge’ : Brandscapes CMD Pranesh Misra

    In a rapidly changing business environment where brands need to be constantly rejuvenated, it is not only important to analyse but also interpret data from a marketing agenda perspective.

     

    The most significant change that has happened in India is the growth of the services over the consumer products sector. Mobile is also emerging as a strong personal medium, which marketers and advertisers have not fully exploited yet.

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, Brandscapes Worldwide chairman & managing director Pranesh Misra talks about how there is need for a marketing data centric company to build profitable growth strategies.

     

    Excerpts:

    When you started Brandscapes Worldwide in 2008, what was the aim?
    The vision was to be a marketing data centric company. Our difference would be to not only analyse but also interpret data from a marketing agenda perspective.

    What progress has been made so far?
    We have got success with global clients. We work with clients across different markets like Carlsberg, Citibank and Coca-Cola. They employ us in different geographies across the world. We work with their issues in over 40 markets and we do projects there. In India, we get clients who are not only interested in the analytics part of it but also want us to advise in the marketing and brand strategy.

    How are you addressing this need?
    We have announced five different practices that we will focus our attention on. These are market research, data mining, marketing science, involving advanced statistics modelling to project the future. The fourth practice is dashboards which is putting all the information together in an easy-to-digest manner. The fifth strategy is the strategy planning dimension.

    What are the challenges that you face?
    The primary challenge is that when you start with data analytics, there is not enough good quality data available. In international markets it is easily available as people have invested a lot of money behind it. We have worked with clients in the SME sector here who have not done any research. This is where we felt that doing customised research for these clients would be useful. We set up our own discipline in the area of research.

     

    The second challenge is finding the right caliber of people. This is a people driven business. It is about understand marketing and how data can be applied to it. I have been able to put together a solid team of 10 leadership team members. Each member has 20-30 years of experience in fields like research, marketing, media strategy, sales and distribution. It is this eclectic mix of talent that I have gotten together. These are the leaders who recruit the next generation of talent and create an organisation.

    What is the advantage you offer to clients vis-a-vis competitive services?
    We are trying to create a new area. I don’t think that marketing consulting is being offered the way that we offer it. Many companies offer brand consulting which is more into the brand strategy area. Then there are large companies like McKinsey and PriceWaterHouse Coopers who are management consultants and who also do marketing consulting. Our focus is on marketing and we have people with experience in this domain. We have holistic knowledge of all areas and so play in market research, data mining.

     

    We are trying to carve out a niche for ourselves between the bigger consulting houses and narrow focussed marketing consulting players. We give holistic solutions around marketing problems. We are not general consultants nor are we very specific. We are not just analytics focussed or market research focussed.
    “The biggest mistake that has riddled many big companies is that their
    thinking moves slower than the consumers”

    Could you give me some examples where clients have benefited?
    As a consultant I cannot give specific examples; I can give broad ideas. There was a global FMCG client looking at a particular category. They wanted to do 20/20 planning on this category. This involved looking at 60 countries, collecting data of different natures like demographics, category penetration, competitive strength and weakness data and category development index data. Then we created a model around which data could be simplified and synthesised. On this basis we created clusters of countries. Then we did deep dive analysis in these clusters to see a common link. This was a macro level solution.

     

    On a micro level there was an FMCG whose brand was not doing well. We got access to retail data. We had to find an insight to take the brand further. One big pack size was not doing well while the others were growing. This size accounted for 25 -30 per cent of sales and was declining. This was the first clue and we dug deeper. Competition was coming with a slightly smaller pack size at a much cheaper price while this company had pushed the price up. We did price sensitivity testing which led to the right price point being found.

     

    A Marketing Dashboard was developed for a shopping mall. This helps it keep track of Key Performance Indicators relating to its tenants – and take strategic and tactical action on an ongoing basis. Strategy Maps were used to guide a global NGO on how to change its branding approach for better success in some countries.

    How have you grown over the past couple of years?
    We started with 15 people. Now we have around 85 people. We have grown at an average of 45 per cent in terms of revenues. The client roster has grown from three cornerstone clients to around 12.

    Which sector is the most challenging to deal with?
    No sector is particularly more challenging than another. It comes down to your domain knowledge. Since we have domain knowledge on consumer goods and services, banking and financial, retail and in healthcare, we are focusing in these segments. We have knowledge there. If you tell us to look at an industrial sector, it would be a challenge,. We don’t understand the topography of that sector.

    What mistakes do companies make when they go about their marketing?
    The biggest mistake I would say that has riddled many big companies is that their thinking moves slower than the consumers. Consumers move ahead very fast in terms of their attitudes. Companies sometimes focus on the unchanging consumer and lose ground. You fail to move with the consumer in this scenario. Information availability is so much that consumers accept new information very quickly. This is a big challenge.

    What other obstacles do companies face?
    In a country like India, sales and distribution is a challenge, especially for new companies. How do you reach out to big markets? When multinationals come in, the challenge is about pricing. They believe that the same prices that are in the developed markets should work here. They get a shock when nobody picks up their product. This is a pitfall that you have to work around.

    Which categories will spend the most on advertising and marketing this year?
    It would be the service sector. Telecom will be one of the biggest drivers in terms of mobile telephony, followed by consumer durables and financial products.
     

    During the downturn did the spends of clients on research get affected?
    We didn’t feel the pinch as we are still a young organisation. But I know that a downturn does not mean that research spending will fall. In fact research happens more as people want to be more careful about spending more ad money and marketing money. Research takes place more in downturns.
    How is India different as a market from other countries?
    In India, distribution is a big challenge. There is a lot of diversity compared to a country like the UK which is fairly homogeneous. It is not about where do you enter in India but about how do you get going. India’s complexity is a challenge in terms of distribution, pricing, target segmentation. You have to be careful in terms of deciding which markets do you go to and which audience do you address.

    You have a JV with Design Bridge. How has this worked for you?
    It has worked out well. We have worked for several clients together. They bring the actual design part of it. We don’t have any creative resource here. So what we do is the first part that is strategy planning. Then you have to create a look and feel, logo design for a product. They do that creative part of it.

     

    In the healthcare category we have a JV with Healthy Marketing Team. They are focussed on helping clients quickly zoom into the brand positioning strategy in the healthcare segment. We partnered with them, have trained our people on their system and have brought that to
    our clients here.
    What marketing strategies work well for alcohol companies in India, given that direct advertising on television and print is not allowed?
    Associating with a sporting event like Golf works. Spirit brands want to have a lifestyle association; they want to project a certain lifestyle and be in a premium space. Alcohol companies also take space in retail outlets. Besides, a lot of attention is spent on packaging of the product, which works towards effective brand building.
    In the financial and insurance sector a lot of companies follow a guilty tag to get parents to buy products. Is that a wrong way to go about selling products like insurance?
    It depends on the situation. Too much of guilt can be counter productive. In some situations, guilt might work. But from my perspective, a positive outlook is better than guilt. Consumers after a while do not want to receive too many negative messages.
    Which marketing avenue is most effective in terms of ROI – print, television, radio, online?
    It differs from category to category and brand to brand. This is what our marketing modeling mix practice estimates. We are able to pinpoint for a market which element gives higher ROIs.
    Is new media becoming more important?
    Yes! It is credible as a medium as people share their opinions and experiences here. It is becoming a credible source of information. A lot of companies, especially international, go to new media first to get answers about consumers.

    But are companies tapping into this medium properly in India?
    It is still a new medium here. Some companies are doing it well while others are experimenting. Mobile is about SMS at the moment. I think that as rich media comes in through 3G, marketers will use it a lot more.

     

    As far as online is oncerned, Indian consumers are already using that medium in categories like hotels and airlines. They want to find out what others feel about a particular brand. This is an area where a dramatic change will happen in the next three to four years. Companies have to understand that the Internet will play a critical step in the decision making process. Companies will need to have a larger presence online.

     

    They can be a part of the online conversation, at least in terms of keeping track of what consumers are saying, and then take corrective action if there is negative feedback. They can also find out what consumers feel works for the brand and why they choose it over competition.
    When you look at the marketing and advertising scenario what are the two biggest changes that have happened over the past five years?
    The growth of the services over the consumer products sector is a big change that has happened in India. Also, the emergence of mobile as a personal medium is a change. This has not been totally exploited by marketers and advertisers, but I think that this is a life changer today. Younger consumers have evolved.
  • ‘Like Latin America, Indian fiction can be sold around the world’ : The WIT MD Virginia Mouseler

    ‘Like Latin America, Indian fiction can be sold around the world’ : The WIT MD Virginia Mouseler

    As format shows have become globalised, India offers an interesting opportunity. The consumption of reality shows has gone up even as channels like MTV have changed their positioning.

    In fiction, India is also emerging as a powerful production force and has the potential to sell its products around the world.

    The Wit (World Information Tracking), an agency specialised in research and information on TV programmes worldwide, is looking at expanding in India.

    In an interview with Indiantelevision.com’s Ashwin Pinto, The Wit’s managing director Virginia Mouseler talks about the company’s plans and the kind of content that works globally.

    Excerpts:

    When you founded The Wit 15 years ago, what did you set out to achieve?
    We wanted to explore creativity around the world and explore new ideas. We realised that other countries had good ideas and in France nobody knew about it.

    Now formats have become globalised. They travel around the world. Earlier only game shows like Wheel of Fortune travelled. Now it is a world of formats. The same good idea that works in one country can go to another and be adapted to the local culture.

    How have you expanded?
    In the beginning, we started with eight countries like UK, the US and Germany. These are the big markets in the Western world. Now we cover 40 countries, including some smaller countries like Belgium, as they are dynamic and creative. We observe every day the new shows and
    programmes that are being launched.

    We have correspondents around the world that send us a weekly report about the new shows that are launching in that country with ratings. You can track our database if you are a subscriber. Television channels subscribe to us. They get to know about interesting ideas.

    What are the major trends that we are seeing globally?
    The most successful show is the music talent contest. Music is everywhere. You cannot have just a singer in front of an audience. There has to be a competition element. Last year the number of formats adapted globally was 10 times compared to five years back.

    People are buying more and more formats. The top formats adapted globally include Dancing With The Stars, Idol, Got Talent, X-Factor and who Wants to Be A Millionaire. Another trend is reality TV. This is everywhere. Another growing trend is factual entertainment.

    TV channels want to address serious social topics without being boring. They find a way to tackle important social issues like homelessness or being jobless or being overweight in an entertaining way. Instead of doing a documentary, they will create experimental shows where people can change their lives and change another life.

    Could you give me an example of this?
    Teenagers in the UK are difficult to handle. They do what they want. They do not go to school nor do they obey their parents. They are unruly. They are sent to another part of the world. In one example on a show called ‘World’s Strictest Parents’, two UK kids were sent to an Indian family in Rajasthan. They had to adapt to discipline. The father showed them what education means to him.

    Is the kind of content that works here different from what works abroad?
    I don’t think so. Of course, there are cultural differences. At the same time in India Big Boss has been a success as it has been everywhere. A good idea will work anywhere if it is not shocking or provocative. It should have universal and positive values.
    ‘The economic downturn has led to consolidation. Spain launched two new national channels and smaller thematic channels two years back; this year they merged. Consolidation has also taken place on the production front.‘

    How are drama and comedy faring?
    They are popular. The problem is that drama and comedy are more expensive than reality TV. Everywhere local fiction is the most popular. But some channels in the UK wanted to reduce costs due to the financial crisis. They are good at fiction and drama but it is expensive. They did more reality TV. It was not a matter of success but of cost.

    So the economic downturn impacted programme expenditure?
    Yes! The UK was hit. A lot of people lost jobs. Producers made less content due to less ad revenue. Channels decided not to buy big budget fiction. I hope that they will do it again. The crisis impacted budgets of channels. They couldn’t pay for big historical fiction.

    In Germany they decided to buy more American shows rather than produce quality local shows due to costs. Now the situation is getting better. Spain is producing good fiction but with less expensive budgets. We are also seeing more co-productions happen in Europe between countries. This allows for expensive historical series to be made. For one country to do it would be difficult. The budgets are less than what is available in the US. When there are only 50 million viewers, it is difficult to produce an expensive show.

    The other impact of the downturn is that it led to consolidation. Spain launched two new national channels and smaller thematic channels two years back. This year they merged. Economically they could not attract enough ad revenue.

    How has the production sector been affected?
    Consolidation has also taken place on the production front. Earlier there were 10 independent production houses in a country. Now most have been acquired. It is tough for independent producers as there are few independent formats. They cannot buy a format as the big production houses have the major formats. It is difficult for a new
    idea to go on air now if it was not a success elsewhere.

    Channels are afraid of making mistakes. They don’t want to take the risk of buying a new idea from an independent producer.

    Across Asia what has the scene been like?
    Fiction in Korea and Japan is a big success in terms of soaps and dramas. After that, you have music and dance. We cover those two markets in Asia. Now we are focusing on India.

    What are the plans for India?
    Until now we followed formats which were adapted from abroad to see how it was done and if it had different cultural values. We did not follow fiction as there was a lot of it. Now we see channels like MTV have interesting local reality formats developed here like Roadies.

    We will focus on this kind of creativity. We will also cover fiction shows on channels like Colors. We want to touch base with the people in these channels to understand what is important for them and their style of production. India is such a powerful production force in fiction. I think that Indian fiction can be sold around the world as has been the case with Latin America. Their telenovelas are sold globally.

    Are you setting up an office here?
    No! We have one office in Geneva. We have correspondents globally sending us reports. It could be a housewife who loves television and will tell us everyday what is going on. Local correspondents also tell us why a fiction show is successful. It could be that the host is popular or that nobody wanted to see competition. You could have a
    show that runs for three hours and which delivers good ratings.

    Only a local person can tell you why it is a success. You need background and gossip. Someone who loves television and is not judgmental makes for a good correspondent. Correspondents should be able to work with our schedule and way. They have to be people that I can trust. I have to count on them every week. In India at the moment the PR agencies of channels send us data.

    Why didn’t you focus more on India earlier?
    We focus on countries that want to export their formats. Japan and Korea are looking increasingly at exporting formats. India so far has imported formats. They did not export anything. Now local concepts are being created here that are worth exporting. Important people in television and media read the Wit. It is an advertising platform for channels.
    We are seeing many foreign companies like CBS and RTL in Germany coming in now and tying up with Indian media companies. How do you see this impacting the content landscape?
    They will try to widen their own sales catalogue and adapt it to the local market. It is good for viewers as they have more choice. RTL and CBS want to have more space to sell but they have to be an Indian channel first of all if they hope to succeed. RTL has been in Greece recently and they have to adapt to the Greek market. They have to develop local fiction with local producers.
    What challenges are content producers and distributors facing as they try to hold on to audiences?
    The most threatened are the bigger channels. In the US for instance, the big networks have lost their audiences a lot over the past five years due to newer cable channels that drew young viewers. Specialty channels came in that targeted young women.

    What they have to do is create new channels themselves that are niche. The needs of people are becoming more specific. If you like golf, you want a channel for it.
    What impact is new media having on time spent on traditional television?
    Statistics show that people watch more television. New media is another platform. It is a new possibility to watch television. The challenge is to do good stories, ideas. Young people can connect to Twitter and Facebook. This is why the industry is developing connected television. They can attract young viewers on the TV and use what they like on their computer. Channels are working with technology companies.

    Is research more important today in an increasingly fragmented television environment?
    Television is a cultural product. When you see a TV show, you want to see something that reflects your society. You want to find yourself or your neighbour. Television is an image of society. You have to look at social and cultural influences to do a good TV show.
     

    But did the downturn impact channel budgets on research?
    We are a research tool. We did not lose any subscribers. We are a necessary luxury as channels need to know what is happening in other markets. We do social research to watch the social images of other countries through television. Television teaches you about the social worlds in other countries.

    The youth is probably the most difficult demographic to capture. They also migrate across platforms. What can media companies do to hold their attention better?
    Channels spoke about multiplatform formats last year. I think though that just going multiplatform does not make a show. It has to be an interesting story, a good topic something that touches the life of a youth.

    The youth might want to interact with and control content. However this is only an additional tool. The core is to have a show that meets the youth’s issues in an innovative way. It could be in fiction, reality. One show that has worked is Young Dumb and Living Off Mum. It airs in the UK on the BBC and focuses on making youngsters who have been lazy more responsible. But it is done in an entertaining way.

    The series follows a group of youth who‘ve waited on hand and foot their whole lives. The series sees them living together in a house and fending for themselves. Each week they must compete against each other in tough work challenges set by their parents, designed to encourage them to become more independent. After each assignment, their parents meet to watch the footage of the task and decide who, based on behaviour and performance, should be eliminated from the competition.At the end of the series, the winner will receive a round-the-world trip for two people.

    In what way has the youth perception and expectations from television changed over the past five years in India and globally?
    The youth want to watch television everywhere. Earlier the family gathered at a certain time. That has changed. The youth want to watch it anytime and anywhere and enter it anytime. You cannot tell them that a show starts at 8 pm. They want to control television and not be in control of it.

    What are the mistakes that television channels catering to the youth should avoid?
    It should avoid giving them lessons. It should not talk down to them. Television is not a tool of power. Broadcasters should realise this. Television is a consumption good. Television should understand that it has to be attractive and at the same time offer flexibility. It should not be a big brother. The youth want information in an entertaining way.

    What lessons have come from shows that have worked for youth?
    Youth needs guidance and coaching. This is why there are so many coaching shows for the youth. Guidance can be given but not through lessons. It should be done through experiments like involving somebody’s life being changed for the better.

    The youth also want avenues that allow them the possibility show their talents. That is why talent shows are popular. However everything does not have to be about being a star. There are talent shows for ordinary jobs like a butcher, nurse. Television has to offer experiments on different worlds.

    What about content targeted towards women?
    There is an interesting show in the US that has been adapted in many European countries called ‘The Real Housewives of’. They follow real housewives from a neighbourhood. You can enjoy watching the life of a real housewife. It is not necessarily about the successful woman professionally. She can be middle class or upper class. You can see her daily life. The ideas came from the fiction show Desperate Housewives.

    Another interesting thing is that shows that only targeted women earlier are also hooking on men. For instance, cooking shows are very successful. Here you have Masterchef India. This genre also targets men. Men and women compete to cook the best meal and welcome guests. Japan loves this genre. But what is interesting is that countries like France and Italy which are famous for food have less cooking shows.

    In terms of television consumption patterns, what differences are there globally?
    What we have seen is that it is often linked to when people have dinner. So in the UK the news is at 7 pm, in Germany it is at 8 pm and in Spain it is at 10 pm. In the UK the average length of a show is half an hour. In Italy it is three hours.

    In the first 20 minutes, the host is greeting the audience and saying nice things. In the UK it would be over. In Turkey, a fiction show is four hours. Turkish people like watching TV, going to eat and going back to watch the show.

    Are any genres becoming more popular?
    Hidden camera shows are making a comeback on television globally. This would work well in India. These shows have a lot of comedy. Big global events are becoming stronger drivers for channels like a world cup.
     

    In India we are seeing a trend where music channels to capture youth have moved away from music and doing different shows. Is this something being seen globally as well?
    Yes! They realised that they needed an identity. Music video clips can be found in many places. MTV realised that they had to be something else than just a music channel. When MTV started, it was the only place where you could find music clips. That is not the case now. They needed a clear personality. The music channels realised that they need to have a face, a real identity.

  • ‘Break-even year for first eight IPL teams” : GroupM ESP managing partner Hiren Pandit

    ‘Break-even year for first eight IPL teams” : GroupM ESP managing partner Hiren Pandit

    The Indian Premier League (IPL) has seen an erosion in brand value due to governance issues. Two franchises got termination notice from India‘s cricket board but are still alive in IPL 4.0 as the court has come to their rescue.

    In an interview with Indiantelevision.com‘s Ashwin Pinto, GroupM ESP managing partner Hiren Pandit talks about how the IPL can still be a revenue earner for the franchises as new advertisers take to the sport.

    Excerpts:

    Will there be revenue pressure for the IPL franchisees to break even now that two teams have been added?
    The first eight teams that came in have done well for themselves – and will continue to do so. They will operationally break-even this year.

    The two new franchises, however, will have to have a serious ace up their sleeves to achieve their numbers. It is a tight situation and will take at least eight to nine years for them to break-even.

    Is it a good time for a franchise to sell a stake?
    At any point in time, people will be in the market trying to find the value that they can get. The question is whether they need the money or if they can hang on. Now a lot of feelers have been in the market. Kings XI Punjab was nearly sold at one of time, but then issues came out.

    Deccan Chargers were in the market after the first year, but now they have Saina Nehwal with them. They seem to have a sports strategy in place. They are trying to have a play in sports by building sporting properties and icons.

    What about Sahara?
    Sahara picked up Pune and it could be related to Amby Valley. They might try to make each property feed of each other. Otherwise, they should have chosen Lucknow. Obviously, the play goes beyond owning a cricket team. It makes sense for them to leverage the IPL across other properties.

    Can Kochi run a smooth ship given that there are so many owners?
    My first take has been that the strength of a team is as good or bad as the strength of a franchise. If the people who are there cannot run and act like a team, then the players will not fare well. This could be an internal problem and if they have resolved it then good for them. Team owners buy a team and give to a professional body or a professional set of people to run.

    They are responsible to deliver for the team. In Kochi‘s case it is the team owners who are trying to run it. The scary part here is that the glamour element that is so huge and you can‘t hobnob with the team. If this is not managed properly, then it can become a problem. I have a feeling that Kochi still has to get its act together.

    They came into the market with serious sponsorship numbers which they are not getting. This is going to have an impact on their cash flows.

    How has off-the-field controversies impacted the IPL?
    The off-the-field activities affected the IPL itself. It impacted when the auction was held. All this is behind us. However, certain issues will have to be addressed after IPL 4 is over. It is not that the off-the-field issues have disappeared; it is just that they are on the backburner.

    With India lifting the World Cup, what viewership gains do you expect?
    IPL should get a boost from the World Cup. Viewers will want to see more of the Indian players. But I don‘t see a dramatic change in viewership. Keep in mind the fact that team compositions have changed drastically – except for Mumbai and Chennai.

    How is GroupM ESP involved with the IPL this time around?
    Maxus is the agency of IPL. In the first year, we did the deal with Citibank, which continues this year. GroupM ESP has got in Volkswagen as car partner for the IPL.

    We also went outside GroupM and did deals with outside clients who wanted to be associated with the IPL franchises. It could be awareness tracks, helping a client taking on competition or helping them form an association. We have also done licensing and merchandising deals that help the brand.
    ‘The Champions Twenty20 League is a great initiative that happened may be a little too early. It will become serious five years from now. But I am not so sure if it will be as big as the IPL‘

    What growth in revenue will franchises see this time around?
    Two new teams coming in means that the central kitty will be distributed among eight to 10 teams. The franchises will see growth from stadium income.

    Some franchises went to the market with high sponsorship price points. They then had to reduce their prices. Good marketing and good performances have helped.

    Mumbai and Chennai have done well and will see substantial revenue growth. Then you have Kolkata and Delhi in the middle. I have a feeling that Pune will pull through while Kerala will struggle.

    In terms of ticket revenues, the Wankhede Stadium will make a big difference to Mumbai. It is in the heart of the city. It is also possible that Mumbai will make more money on licensing and merchandising than any other team.

    The key to success is to reduce the heavy dependence on the central pool. Do you this happening this year?
    While some franchises may manage to up their local revenues, the Central pool may stay stagnant. But Chennai and Mumbai, and perhaps Kolkata, may manage to change the percentage ratio between central and local revenue in favour of the latter.

    The World Cup meant that franchises could not carry out activation with sponsors in the lead up to the IPL. What has been the impact?
    Every sponsor was aware of this problem. But if sponsors are smart enough, they will look at it from the longevity point of view so that they can build an association. Some companies like Luminous are doing activities. It is a tight situation, though, with players not being available. Sponsors will do such things during the IPL.

    Also, with the team structure changing, the task of building a fan base becomes that much more harder. Chennai and Mumbai are, of course, better positioned to strengthen their existing fan base.

    Rajasthan brought in Floriana which is a company that has never advertised in cricket. Are we going to see more of new advertisers taking to the sport?
    You will see a lot of newcomers as there is a churn happening. Some sponsors got in due to the glamour of the IPL without understanding what their objectives were; their relationship with the franchise owner may not have been good.

    In years four and five, you will see this settling down. Sponsors now have a clearer idea of what they want; franchises also realise that you cannot have a revolving door policy where you take money and not do anything.

    Which brands have done a good job?
    Nokia and Aircel are some of the companies that have stayed on with the franchise. Vodafone has benefited with the Zoozoos as its idea. Those sponsors who only looked at it as a piece of real estate for a logo are the ones who got screwed.
     

    Will we see more advertisers this year?
    The number of advertising opportunities on clothing will stay the same. This year, though, we will see advertisers coming in as partners and doing on-ground activation. An entrepreneur in a city like Hyderabad could decide to open two restaurants and bars named after the Deccan Chargers. The logo part is static, but the number of partners can increase.

    You will see more people moving in to the licensing and merchandising space. The franchises also have to look at this more seriously. At the same time, it is a slow burner.

    Wearing the team colour is the starting point; you will see clothes, watches, etc. But a pub or a shop like what Manchester United has is still a long way off. However, licensing and merchandising will still be a small part of a team‘s revenue.

    Two more teams mean more ad clutter. Is this going to be a major challenge for brands?
    Clutter was there with eight teams. Anybody who wants to break this, must do something different.

    Of all the brands that were associated with the ICC World Cup, the one that stands out is Pepsi. The whole creative concept that they did like the ‘helicopter shot‘ gave it a different flavour. The viewers saw something different, which stood out.
     

    Some feel that having two groups was the BCCI‘s way of trying to solve a problem of 10 teams. Do you agree?
    This is a format issue. You would have had 94 games. This is a lot of games. I remember traveling the first year with the Deccan Chargers. I wasn‘t even playing, but I was still tired. If you expect people to play so many games, it is unfair.

    The BCCI has tried to fit things in the best possible manner. They will review the current situation. But the window available is 45 days; this is not going to increase.
     

    What we have seen so far over three years is loyalty to the IPL and not so much for teams. Will this situation change this year?
    This has changed. In the Mumbai versus Chennai match, the yellow and blue colours were very dominant. People were talking about teams. This time it might get affected due to a new team structure. But over a period of time, the relationship will build. Team loyalty should grow for certain franchises.
     

    Some franchises were thinking of forming alliances with clubs globally. Will this concept work?
    It is great to have a relationship. The question is what is that relationship built on? Rajasthan went abroad to play matches in the first year. It cannot just be a piece of paper, though; both parties must benefit. How many franchises have built a school to develop cricket and build a base that will feed into their team? These things need to happen. Just tying up with a foreign club is not the solution. Not enough has been done during the ‘off season‘. At the same time, money must make money.
     

    Can the Champions Twenty20 League be declared a dud?
    It is a great initiative that happened may be a little too early. It will become serious five years from now. But I am not so sure if the Champions Twenty20 League will be as big as the IPL.

  • ‘We share cordial relations with the BCCI’ : Kings XI Punjab co-owner Mohit Burman

    ‘We share cordial relations with the BCCI’ : Kings XI Punjab co-owner Mohit Burman

    Amid controversies surrounding shareholding issues and a termination notice from the BCCI, the spirit of Kings XI Punjab hasn‘t dampened. The Indian Premier League franchise expects to break-even this year as it targets a 15–20 per cent increase from all revenue channels.

     

    Though the drama off the field and the court proceedings caused damage to the brand, Kings XI Punjab has fought back and managed to retain four of its existing sponsors.

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, Kings XI Punjab co-owner Mohit Burman talks about the hard times the franchise had to go through while staying on course to turn profitable.

     

    Excerpts:

    The BCCI had terminated its IPL contract with Kings XI Punjab and now the team is back. What is the current relationship with the BCCI?
    We share cordial relations with the BCCI. After all, it is in both our interests to run the league smoothly.

    What was the argument that you made in court over the BCCI‘s abrupt termination?
    The BCCI had a certain opinion about the shareholding structure of the company, which was factually incorrect. The court in its interim order has accepted our position on the issue.

    Amid all the controversies including the one for overseas broadcast rights, are you concerned that the IPL‘s brand value might take a hit?
    Brand IPL has only been growing these past three years. We believe that this will further grow with each passing season.

    Does the BCCI need to adopt a more inclusive approach and involve franchises when it takes big decisions?
    The BCCI and franchisees form the IPL. Hence, it is only right that both engage with each other in the best interests of the league.

    There are now 74 matches as opposed to 94 envisioned earlier. What impact will this have on your revenue?
    Each franchise shall still play 14 games at the league stage. I do not, therefore, see any great impact on revenues. We are confident of breaking even this year.
    ‘Though there are 74 matches as opposed to 94 envisioned earlier, there will not be any great impact on revenues. Each franchise shall still play 14 games at the league stage. We are confident of breaking even this year‘

    Some feel that the BCCI should not have added two new franchises. Do you agree?
    I don‘t see 10 teams as problem. It was always known that two new teams would be added in 2010.

     

    Yuvraj and Mahela are match winners in their own right and we did try to bring both of them back into our team. But after a point, the costs for individual players affect the composition of the team. At the end of the day, one has to formulate a team vis a vis spending the bulk of our purse on individual players. We have added 12 uncapped players including Nitin Saini, Sunny Singh, Siddharth Chitnis and Paul Valthaty.

    How would you describe the progress that Kings XI Punjab has made over the past three seasons of the IPL?
    We have come a long way since the first auction when nobody was sure if this format would work at all. Over the past three years, we have seen a number of ups and downs.
    The first season was a good season for us from a cricketing perspective as we reached the semifinal, but then we slipped and our performance has been below par in the last two seasons. But with the learning’s from the previous seasons, we have now worked out a very balanced cricket team under an IPL winning captain – Adam Gilchrist. We strongly believe that our new team has the potential to win the IPL and make all our fans and supporters very proud of us. With three seasons behind us, we have only learnt more and understood how the business of sport and entertainment works. We are now in a better position to plan and execute effectively with clear objectives.

    What have the key learnings been?
    The IPL is a very interesting product as its gets cricketers from across cultures who have always played against each other but are now playing in the same team. Hence, we have realised that the success of the team depends on how well the team gels together and plays as one unit while understanding each other’s limitations and strengths.

     

    From a brand perspective, IPL team fans were initially excited about the cricket stars in each team. However with our efforts over the last few years and even going forward, we are trying to position Kings XI Punjab as the prime product and have the fans support the team rather than the stars in it.

     

    Over the last three seasons, we have had partners who have stood by us and believed in brand Kings XI Punjab. For the coming season, we have renewed four of our partners (Emirates is the Title sponsor while Reebok is the Official Apparel Partner, USL is Official Games for Challenge Partner and Wrigley is the Official Chewing Gum) as we believe that long term associations is where the value in sport sponsorship lies.

    How hard has it been to get the sponsors on board after all the controversies Kings XI Punjab went through?
    It is fair to say that the happenings off the field initially had an effect on the perception of the sponsors to a certain extent.

     

    However, the fact that four of our existing sponsors have signed again with us should indicate the trust and faith that sponsors have in us as a franchise and the value that they see in associating with us. You shall soon hear of many more sponsors coming on board with us for the coming seasons.

    Is it just money that you are looking for or are there other parameters?
    We are a group of friends who invested in this venture as all of us are passionate about sport in general and cricket in particular. We also saw value in this model as a business proposition.

    What revenue growth are you eyeing this year?
    We are looking at a 15–20 per cent increase on all revenue channels across the board.

    Two new franchises means more clutter for advertisers. How do you see things playing out in terms of brand recall?
    All the teams are assigned Catchment Areas and Bases. This should take care of the brand recall to an extent. We have invested time, effort and money into building brand loyalty,
    which is the hallmark of our franchise. We value our association with our fans and are grateful to them for standing solidly behind the franchise at all times.

     

    It is also very important to realise that sponsors come into the IPL market with their own set of objectives and plans. Some brands use this platform just as a branding exercise while others rely on activities around the team and players.

     

    The TRPs of the IPL in the past three years have been more than impressive as it is the biggest sporting property in the country.

    What initiatives are you planning for to build fan connect this year?
    We are looking at increasing our fan base by conducting activities for the Lion‘s Den, which is our Fan Club. These would be online through our website and on ground activities in our catchment areas of Punjab, Haryana, HP and J&K.

     

    Fans can win tickets, merchandise and also get to meet and train with the team. You will see all this happening in the lead time to the season and even during the off season.
    In the past you have been careful about marketing expenses due to the economic climate. Will these expenses be reduced further this year?
    We have budgeted for what is required to meet our marketing objectives.

    What strategy are you looking at to build the licensing and merchandising side of the business?
    The licensing and merchandising market is still at a nascent stage in India. Unlike a traditional and regular licensing and merchandising programme, we have had to create a plan according to the market needs.

     

    While we have licensed our team kit to Reebok, we have also identified other partners for sole merchandising. We have signed up a specialist partner who shall represent us in the licensing space. We shall be making announcements about the same in the days to come.
    Is Kings XI Punjab looking for a CEO?
    We are not looking for a CEO. Arvinder Singh heads the management team as the COO.

    Are you interested in being involved in other sports?
    The IPL has changed the way sport is successfully run in India and as part of the IPL, we are in a good position to help develop other sports.

     

    We have always said that we are a community-driven team and one of our core objectives is to give back to sports. Hence, as and when feasible and excitable projects come along, we shall take a call at that time.
  • ‘We focus on films that have high repeat value’ : Movies Now channel head Ajay Trigunayat

    ‘We focus on films that have high repeat value’ : Movies Now channel head Ajay Trigunayat

    he English movie channel genre is sized at Rs 3.25 billion and is expected to grow at 20-25 per cent due to the entry of new players.

    The competition among the channels has grown the number of advertisers to 340 in 2010, up 21.4 per cent from the year-ago period, which had attracted 280 advertisers.

    Companies advertising more on this genre are the new telecom companies, automobiles, electronics and white goods. FMCG, though, continues to be the largest ad spender.

    Barely three months old, Movies Now from the Times TV Network stable is looking at doubling its advertising rates as it claims leadership among a specific upscale young audience group in the metros.

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Movies Now channel head Ajay Trigunayat talks about the growth of the genre and how important it is to build a library that stresses on repeat value potential.

    Excerpts:

    We are seeing new channels coming into the English space, be it movies, entertainment or lifestyle. What factors are fuelling this boom?

    India is riding on a robust cable and satellite growth. The television household universe has grown from 128 million homes to 145 homes over two years. Within this cable and satellite has grown from 84 million to 110 million.

    There is also healthy digital growth happening. The number of digital homes will touch 30 million by the end of the financial year. Cricket will fuel this growth.

    Channels are looking forward to being able to charge the right price to the consumers, so that they can make the right amount of subscription income.

    What will new entrants do to the English space?

    I believe they will grow the genre. Earlier, you had HBO and Star Movies dominate the English movie genre; nobody challenged their viewership. Our aim is to challenge the status quo of these two players.

    Simultaneously, Star World and AXN dominated the English general entertainment space. Reliance launched a channel, but so far it has not caught the fancy of the viewers. It is important to build the right distribution and the right content.

    What do viewers expect from the English movie genre?

    Their expectations have changed dramatically over the past decade. Earlier, it was important that at 9 pm Terminator 2 would show and you would watch it. Now with a plethora of channels coming in, viewers no longer make appointment viewing. They surf across channels.

    People do not watch a whole movie anymore. They might watch a segment of a movie that they like again and again. There is a dramatic shift to random viewing. This determines how you place content and schedule it. Content selection makes a lot of difference.

    Why did The Times Group launch an HD channel now?

    We decided to look at a key differentiator for Movies Now as our content has played on other channels. We decided to provide the best audio and visual experience.

    As you go along, most channels will be in high definition. The Times Group has a commitment to deliver the best readership or viewership to the upscale audience.

    What challenges do you face?

    Doing an HD channel poses its own challenges. We are a completely tapeless library. We use the best of servers and post production facilities. We use half the space for HD that you would need in standard definition. There are cost benefits that we are trying to exploit.

    But moving from SD to HD is a learning curve for the organisation. If Star Movies and HBO want to do it, they can just transfer their experience in other markets to India. We had to start from scratch. So it took a little longer for us to launch compared to a broadcaster, who is already running HD feeds globally.

    ‘Competition gets Rs 3500-5000 per 10-second spot. We want to reach Rs 3000 per spot by increasing the effective rates by 100 per cent over the next three months‘
     

    What investment has been made and what targets have been set for the year?

    I cannot talk about figures. However as a Group, we believe in being No. 1. Movies Now is ahead of the competition, if you look at C&S 15-34 SEC A,B metros, we have a 34 per cent share in this segment.

    We are not into running new movies. We focus on films that people want to watch over and over again. People watch films like True Lies over and over again. They are not interested in films like The Hurt Locker, The Curious Case of Benjamin Button, though that may be the popular perception. If you can manage and create a library which has high repeat potential, then you will be successful.

    We have also gone for top of the line high definition. This is not pseudo high definition 720p. This is 1080i. We deliver 5.1 surround sound. When we launched, our GRPs jumped to 77 which was an 80 per cent category growth. The category has settled at 68 GRPs. Only in Hyderabad are we behind due to issues of distribution, which we will crack in due course.

    In the last 12 weeks, eight out of the top 10 movies are ours. On the weekends, we are ahead apart from two weeks. Our distribution is at par with competition. We caught up with Star Movies in the last three weeks.

    What time frame has been set to be profitable?

    Most projects set a time frame of three to five years. For us, though, given the start that we have got, we expect to break-even faster.

    But when you have more players content costs go up. Isn’t this a challenge?

    It is. High content costs put pressure on the bottom line. Over the past six years, costs have gone up by around 3.5 times for this genre.

    Earlier, it was a buyer’s market. That started changing when Zee’s deal with MGM ended; they had to buy titles from other distribution companies.

    Revenue can be difficult to push for as there are options for clients. But we have a 34 per cent channel share in our target segment. We want to increase our effective rates by 100 per cent. The key challenge for the next quarter is maximum monetisation, based on our channel’s performance.

    But since you do not have premieres, aren’t content costs much lower than competition?

    Not really! We play the best of the best content. When you pick up a Titanic or a True Lies, you pay for it. But if you just want those titles, you have to pay a significant premium as you are not picking up other stuff from the studio. We deal with studios including Sony, MGM and Warner.

    Long term deals ranging from five to 10 years have been signed. At the same time, the independents have nothing significant. Earlier people were not selling content only for India. They would sell it only at an Asia Pacific level. The first thing we did in 2007 was to convince studios to carve out India as a separate territory. We have proven to them that India has potential.

    The studios are happy with Movies Now. Each month we introduce 30-40 new titles. It is not that we rehash the FPC.

    Could you talk about the library that Movies Now has?

    We have close to 500 films in our library now. We are concentrating on movies like Titanic and Apocalypto that people want to watch over and over. Our strategy is different. Speed was the highest rated movie in the last six months.

    Also in a year, there are only a handful of blockbusters that come in. The viewer wants a good movie, regardless of when it was made.

    So you are not doing what Pix did, which is start with library content and move on to more premieres?

    Pix started with what I call classic, niche movies. We play popular blockbuster movies that appeal to an average English movie viewing person. Pix took nearly two years to realise that they needed to play films like Charlies Angels to get viewership into place.

    We are a very premium, High Definition brand. The perception among viewers is that our audio video clarity and choice of movies is better compared to competition. These two things came across in some dipstick research done.

    But since most homes do not have an HDTV set, aren’t you at a disadvantage?

    If you play an HD file on a laptop, it looks much better compared to a standard definition file. The quality of playout at transmission is five times better even on an average LCD or plasma that is not HD. The picture and audio is better. Six cable operators offer HD like GTPL in Gujarat. The uptake of HD will grow. Even on a regular non HD TV set, HD playout and transmission delivers better picture quality than standard layout and transmission.

    In terms of distribution, did you focus on digital homes?

    We have chosen to get our act right on cable first. This meant a significant investment in carriage fees. Only later did we look at DTH. After all, 88 per cent of viewership still comes from analogue cable. Four per cent comes from digital cable and eight per cent comes from DTH.
    We are available on all DTH platforms, except for Tata Sky. We are at an 18 per cent reach of the TG, which is the same as Star Movies. 19 million viewers watch us in a week.

    How is the programming structured?

    Content is just one piece. We follow a holistic strategy across. People who have seen True Lies many times may want to see it again, compared to The Hurt locker, which many people may not want to see even once. True Lies got a TVR of 0.47. The Hurt Locker on its first airing got a TVR of 0.04. Due to our audio and video quality, people would rather watch a film here than any another channel.
     

    What about programming blocks?

    In terms of programming blocks, we have kept things simple. People like to watch movies on the weekend. There is a distinct dispersion towards weekend viewership versus weekday viewership. Moviethon airs from 11 am-11pm where we play the best of movies back to back. We call it ‘From Sunlight To Midnight’.

    On Saturdays, we have a comedy block in the afternoon, where two movies air back to back.

    There is Love boat at 9 pm on Monday and Grand Nights on Saturdays at 9 pm. We are also actively considering creating an afternoon slot for women.

    Each month we do festivals. We did a complete Rocky festival from January- March. This month, we are doing a festival around Shaolin and Kung Fu movies, which have been digitally mastered in HD and 1080i.

    How do you see HDTV technology spreading?

    There are already five million HD or HD ready TV sets in the country, that are not captured by research. They have come in from outside. If you walk into a shop today, all you see is a display of HD TV sets.

    When people buy a new TV, they go in for HD as the price point has come down dramatically. You can own an HDTV set for Rs. 12,000 – sometimes even for Rs 9000! The adoption of HD is there.

    If you look at the advertising of a Samsung or a Sony over the last three years, you will not find an ad for standard definition. In a TV shop, you see LEDs.

    If appointment viewing has gone, how do you build brand loyalty?

    There is brand loyalty to a channel, but no loyalty towards a time slot. People are not saying that they will watch a film at 9 pm. We are top of the mind recall.

    What are you doing for the summer?

    From 1-28 April, we will have a sci-fi festival on Friday and Saturday at 11 pm. From 18-26 April, there is another festival called Hollywood heroes at the moment. The best films of the likes of Anjelina Jolie, Sandra Bullock and Will Smith will be showcased from Monday to Thursday at 11 pm.

    There are many players creating a unique look and feel. How did you approach this challenging task?

    We were very clear on the brand identity. Our brand needed to be premium. So the packaging had to be at par with Star movies and HBO. We selected London-based DixonBaxi, which has worked for USA Network and MTV; they have done packaging for the Universal Channels worldwide. We also chose the best voiceovers in the world for our ads. Each element that informs the viewer of who we are, was done carefully. We don’t concentrate on a USP. We focus on providing a holistic 360 degree experience to the viewer.

    What kind of promotional activities does Movies Now do?

    We are fortunate because of our parental linkage; we get a lot of coverage in The Times of India. This is the best vehicle to promote any English channel.

    We also do outdoor. We advertised on Ten Cricket. We did an alliance with Gold’s Gym for Rocky. We have just done another alliance with the BJN Group. Two months back, people did not want to do marketing alliances with us. Now, increasingly they are willing. We tied with many retail outlets such as Croma: you only see Movies Now playing there. This is complimentary to the sale of HDTV sets.

    We have done an alliance with Big Cinemas for the DVD release of Harry Potter. There is a contest and two winners get to go to the sets of the film in the UK and Hollywood. Later in the year, we could do tie ups for theatrical releases. The film has to appeal to a mass audience, for us to benefit. There is a film called Sucker Punch being released, but we are not sure if it will appeal to the masses.

    Digital forms an important part of marketing for the English movie genre. What activities do you do?

    We are fairly active on Facebook and have a site. But if you look at Internet penetration, it is still low. So traditional mediums outscore digital. I am not discounting the importance of digital, but it has a long way to go. On websites, we do activities to provide the right experience for the viewer and the trade.
    Isn’t digital more cost effective for you?

    We have found it more expensive. It has not given us the kind of reach and conversions to viewership, the way traditional media has. Digital media is still hype; it has not built up to the extent that it should have. It is traditional media that is giving you 90 per cent of results.

    On the ad front, are you encouraged?

    Clients want an upscale urban audience. Our TG is C&S 15-34 SEC A,B metros as it is the aggregate TG of all our clients. We have 40 advertisers. Our source of revenue is advertising, as we pay hefty carriage fees.

    English movie channels have touched Rs 3.25 billion. The English entertainment channels including the GECs contribute Rs 1 billion. So there is Rs 4.25 billion at stake.

    We expect a 20-25 per cent growth for English movies this year. If competition had not come in, we would have seen 10-12 per cent growth this year.

    Lack of competition led to stagnation in terms of ad revenue for the English movie genre. Now with us coming in, Star Movies, HBO, Pix are all doing more things. There is healthy competition, which will lead to healthy ad revenues.

    How do your rates compare?

    They are not comparable. Competition gets Rs 3500-5000 per 10 second spot. We want to reach Rs 3000 per spot by increasing the effective rates by 100 per cent over the next three months.

    280 advertisers were on English Movie channels in 2009. In 2010, the number grew to 340.

    New telecom companies, automobiles, electronics and white goods advertise more. FMCG continues to be the largest ad spender on this genre, followed by telecom and mobile. Then come consumer electronics.

    Is the cricket season impacting viewership of English movies?

    Yes! Depending on the performance of the India matches, it drops. In one week, there was a dip of 27 per cent. In another week, when the match was not on a Sunday, the dip was 15 per cent. It also depends on how well India is doing.
     

    Does counter programming work?

    We are not doing this. What we have done is build our content before and after cricket in a certain manner, and during the game in a certain manner. A match gets over by 10:30 pm. So our best films air at 11 pm.

    We place non-male viewership films during a cricket match. So people who want alternative content to cricket, can watch us. There are limitations within which we operate. Let us see what happens.

    Are you also looking at film-based shows?

    No! We are just playing movies back to back. In our analysis, whenever there is a film-based show on an English movie channel, the viewership drops – sometimes by as much as 70 per cent! We do not want any drop in viewership for the sake of differentiation. But we are considering doing a show in such a manner, that it would add viewership.

    How much inventory has been sold?

    We are running at 70 per cent inventory utilisation. The push has to come from an increased rate. For the past Saturday, we were sold out, but it was a peculiar case. The Indian cricket team normally plays on Sunday and so people want to use us more on Fridays and Saturdays. We dropped 120 spots.

    Inventory utilisation is at around 95 per cent across English movie channels. But the rates are not right. So you might have to grow the amount of inventory available.