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  • ‘We expect ICL to break even in two and a half years’ : Himanshu Mody – Zee Sports business head

    ‘We expect ICL to break even in two and a half years’ : Himanshu Mody – Zee Sports business head

     When Zee launched the Indian Cricket League in the face of a take-no-prisoners campaign of opposition from the Board of Control for Cricket in India last year, there was scepticism galore on whether the Subhash Chandra-backed league would bat it out. Particularly after the the BCCI announced plans for its own league shortly thereafter.

     

    ICL, however, successfully staged two events despite all the hurdles thrown in its way. The Indian Premier League kicking off on 18 April notwithstanding, Zee Sports business head Himanshu Mody is confident that his cricket endeavour will hold its own.

     

    Indiantelevision.com’s Ashwin Pinto caught up with Mody to ascertain his views on the progress made and future plans.

     

    Excerpts:

    Firstly, congratulations on having been able to deliver the second edition of the ICL despite the best efforts of the BCCI to skewer you. How has the experience been different from the first edition?
    It was much better. The first one was with six teams in one venue. There were 20 games. For the next event we added two more teams and had three venues. Lahore came from across the border. The event was held on a larger scale.

    What were the learnings from the event that you will take, going forward?
    We learn every day. Despite the pressure and resistance that we face, I think that we are set on a path to success. We have good players and have built on the ground infrastructure. We have 250 members, 80 of whom are Indian players. The rest are foreigners – coaches, players support staff, etc.

    How is the event being expanded upon this year?
    From April to September it is summer and then the monsoon season. There is not we can do in this period. We will hold an event later this year. We could include ODIs as well. We had a non televised ODI tournament in January which was played in Chennai and Hyderabad. What we come out with will depend on the commercial viability.

    How succesful have you been thus far in infrastructure and grassroot talent development?
    The Indian players come from various small towns and cities like Jammu, Srinagar, Assam, Indore and Bhopal. The Indian players come from 58 cities. We have a diverse mix in this sense. We also have talent scouts in each Zone where they have gone out to find emerging talent. We will now be setting up a central Academy for our boys.

    A notable feature this time round was that there was an increase in spectators in the stadia. Has some sort of a spectator/viewer connect with the state teams happened?
    This is starting to happen. The event is a family viewing experience. People are supporting the local team. In the final, Hyderabad Heroes had a lot of local support. At the same time support depends on performance as well, which is what has hampered Mumbai.

    Simulcasting the event on Ten Sports and Zee Sports has ramped up viewership quite significantly. What have been the average combined ratings? Have they been up to expectations or have they exceeded your brand partners’ expectations?
    The ratings have exceeded our expectations. We managed an average of 1.5. Ratings peaked at 3.5, which is more than India Test cricket and some ODI ratings.

    Was it a challenge to get sponsors on board given the BCCI stance?
    The establishment tried everything they could to prevent us from getting a start. They tried to resist sponsors from coming on. Also, to be fair, for the first event sponsors were reluctant as they did not know what to expect. The first event was a solid start.

     

    The second event has been a big hit and on the back of that we launched a tri series between an Indian XI and a World XI. We sold most of our inventory for this. The likes of Pepsi, HUL and Vodafone have come on board.

    And what of the other cricket boards? Do you see a softening of their stances vis-a-vis the ICL and what could be the catalyst for it?
    The other cricket boards have to realise that more than ICL, it is the IPL that presents the biggest threat to them. I think that they are starting to realise this. We do not ask any existing players to break their contract. At the moment the IPL presents that dilemma to current players as to whether they should play for their country or IPL club. We have taken players who are on the fringe or who do not have a central contract with their respective boards.

     

    The international governing body needs to take a call on what is more important. In soccer for instance, club soccer contributes more revenue as opposed to countries playing against each other. Cricket must decide if it wants to go down this route. If that happens, then country versus country matches will have to come down. If, however, it decides that the country format is more important, then the IPL could be limited in terms of matches played.

    How has ICL fared businesswise? Could you offer any idea of the kind of investments that have been pumped in?
    I cannot talk about numbers. However the business is robust. Earlier when we started this last year, we had given ourselves a breakeven period of three years. Now we expect that to happen in two and a half years.
    ‘The other cricket boards have to realise that more than ICL, it is the IPL that presents the biggest threat to them‘

    Where have the revenues come from and how does it compare with the inaugural edition?
    We have several revenue sources. We have ground sponsorship, associate sponsorship, ticket sales sponsor, advertising on television, broadband rights.

     

    ICL was aired in several countries including UK, US, Pakistan, the Middle East, Africa, Southeast Asia, Australia and New Zealand. We did deals with international broadcasters for ICL including Showtime in the Middle East, Starhub in Singapore and Astro in
    Malaysia.

    The ICL is unique in that everything – whether it be telecast rights, teams, stadia – is owned by the promoters. Therefore, by extension, it’s Essel that has to spend on development, promotion and marketing of every aspect of the event. With IPL as a rival, in effect you’re confronting the power of 10 – not just a powerful cricket board but eight strong franchises as well as an established television network for share of mind. Doesn’t that become a huge challenge?
    We took satisfaction from the fact that the IPL format has duplicated ICL. The economics of the whole thing differs from product to product. We knew what the marketing plan would be and what would be enough to cover the country. We are on track. If we incur all costs and do it ourselves, then all revenues belong to us. We do not have to share them with anybody on a
    80:20 or 60:40 basis.

     

    If there is no India cricket in a certain period, then the ICL becomes a strong proposition. If you can have many news channels, I don’t see why two leagues cannot co-exist. We can have as many events as we like with all our players.

    Actor Mithun Chakraborty has picked up a stake in the Kolkata ICL team. What are the future opportunities for stakes in teams?
    We are talking with a few corporates. We chose not to sell teams initially as we wanted to show people the value that we bring to the table and what our delivery is. Having done this, we can now command a premium for our teams for strategic partners. It is not just a question of money. We are looking for partners who share our vision and who can bring synergies to the table that will help the ICL grow.

     

    We will, therefore, be selective about whom we choose to partner. We need to know the drive they have and what their objective to invest is.

    With the BCCI’s league being launched next week, what impact will this have on ICL in terms of retaining both local and international talent and viewer interest? In the present context, the ICL has a shelf life as a low-cost, lower value alternative to the IPL. But if these eight franchisees are going to expand in a big way, what will be left over for the ICL to pick up might just be the crumbs. Are some of these fears being expressed?
    I don’t think that it is a fair comment. There is enough local and international talent to go around. We have contracts with our players and I know that the satisfaction level they have is high. We are a closely-knit family. I don’t see substantial movements happening.

     

    A mature sports market allows for trading, though. The players have contracts with us and if somebody wants them, then they will have to pay us accordingly. That is how sports clubs operate globally. A player cannot simply break his contract. Our stated objective has been to have talent at the grassroots level. So we did not go out and try to get the likes of Sachin, Dravid.

     

    What we do is in line with what Zee does if you look at shows like Sa Re Ga Ma or India’s Best (Cinestar Ki Khoj). We short-listed 15 Indian players who we felt were the best. They played in the tri series. The fight they showed was commendable against a global bowling attack.
    The flip side to ICL is that many cricket boards, including Pakistan, are peeved that cricketers were taken. Do you feel that this will negatively affect your ability to go after their TV rights?
    I do not think that there is a conflict over here. The businesses are separate. If our bid is the highest, then it will come to us. A good price is what any board would look for. The best man wins. I don’t think that the board will be concerned about who offers the highest.

    How is the relationship with Ten Sports working out?
    We have been partners for a year and a half. It is working well. There is content sharing. We distribute Ten Sports. They handle our ad sales. The FPC is made by a central team. If there are clashes, then the programmes get split between the two channels.

     

    The Uefa Champions League sometimes has two games at the same time. So we air one match. In fact, we started doing this before we partnered with them. This offers the power of two.

    You are also doing an initiative Goal 2010. How did this idea come about and what progress has been made?
    This came about when Fifa president Sepp Blatter came down to India. This sport has a huge potential. We are putting money into this sport and in a couple of years, we will start seeing the results. We do a lot of school soccer tournaments.

     

    Our focus is at the grassroots level. We need to emerge as champions at the Asia level by 2010. We should be among the top five teams in Asia. Ten Sports airs domestic football in the Middle East. We are also working with the AIFF at tweaking the format of domestic football.
    Is the appeal of soccer moving beyond the three states of Goa, Kerala and West Bengal?
    Yes. It is getting popular in parts of states like Gujarat and Maharashtra.
    Do you think corporatisation will help sports like soccer and hockey to move forward?
    It can certainly help soccer. Hockey, however, is on a downturn not just in India but also abroad. In soccer, you have 32 teams playing the World Cup. In hockey just seven or eight teams play the event. Even in those countries the popularity is not as high as it should be.
    How is Zee Sports faring on the distribution front?
    The ICL has done us a lot of good. We have achieved 50 per cent connectivity. This rose from 25 per cent over the last three months.

    What property acquisitions were recently made?
    Zee and Ten Sports acquire things together. We renewed the West Indies cricket rights. We have the US Open tennis event for the long term.

     

    India is a unique country in that there are several sports channels but only one sport dominates. In other countries there are only two sports channels but multiple sports are followed. This is why the price of rights are going up dramatcially in India due to
    competition.

    Finally on the advertising front brands at the moment are not sure about how to use sport beyond cricket. Do you see this changing in the near future?
    It is changing already. A lot of advertisers are going to Golf. Once the Indian advertisers start to understand the true value of sponsorship that goes beyond just TRP, things will change. The best example is what the EPL has done for Barclays.

     

    This, though, has been built over several years. Indian companies are realising that they should invest in sport over a long term. The advertiser has to invest with the sports federation.

  • IPL is the name of the game

    Three decades after Kerry Packer revolutionised cricket with the World Series, cricket stands on the threshold of another potentially disruptive revolution. On 18 April, the Board of Control for Cricket in India (BCCI) will unveil the Indian Premier League (IPL), a format the Indian board hopes will change the way Indians watch the game.

    Instead of cheering the country, one will cheer city-based leagues. Eight teams – Jaipur, Mumbai, Mohali, Chennai, Hyderabad, Kolkata, Bangalore and Delhi – will take the field.

    Can this work? The answer is yes if one looks at the experience of the first mover in India – Essel Group’s Indian Cricket League. The ICL is currently holding its second event and is getting good visibility as matches are also being aired on Ten Sports. The on-ground attendance has also been decent, showing that if an event is well marketed there is scope. Considering that ICL has managed all this in the face of a take-no-prisoners onslaught by the Indian cricket board, what the officially sanctioned event might well deliver boggles the mind.

    One must also note at the outset that IPL and ICL are possible because of the success of the T20 format. Initially there was some cynicism even within the BCCI as to how the new format would fare. The T20 World Cup, though, changed all that. With India winning, the viewership grew and the final scored a ratings of 9.81 TVR (Tam data, C&S 4+).

    Broaden the game’s appeal: The aim of the IPL is to broaden the appeal of the game. Since matches will take place in the evening, the hope is that families including women and children will turn up in large numbers.

    The IPL has also brought corporates closer to the game. Companies like Reliance Industries now own a team. This is expected to inject professionalism and also entrepreneurship. The larger aim is to push cricket at the grassroots and domestic level.

    The IPL is conceived as a city-based league format. With the base price set at $50 million for the city-based franchisees, the teams were bought for well above that.

    The prices paid show that after a lot of due diligence, corporate India views the IPL as being a serious business venture. Reliance Industries, for instance, paid $111.9 for Mumbai while Dr Vijay Mallya’s UB Group shelled out $111.6 million for Bangalore.

    The IPL will have flair and flamboyance when you consider that Bollywood also got into the act. Shah Rukh Khan paid $75.09 million for Kolkata. Preity Zinta took Mohali for $76 million. On the other side, we have Emerging Media, an expert in organising sport, paying $67 million for Jaipur.

    The broadcaster’s viewpoint: The BCCI hit the jackpot when the Sony-WSG combine bought the ten-year broadcast rights to the IPL for $918 million. Compared to this, the price that ESPN Star Sports (ESS) paid for ICC rights looks like a good bargain.

    While many have questioned the financial wisdom of such a huge payout for an as yet untried format, the numbers do not look quite so daunting when the fine print of the deal is examined. The guaranteed payout commitment by Sony-WSG is $306 million for the first five years. The remaining $612 million, to be paid out in the second half of the deal, comes with an exit clause built in.

    Sony president network sales, licensing and telephony Rohit Gupta is gung ho about the IPL, noting that T20 is the game’s future. “If you see the scene for the last four years, ratings for ODIs have been steadily falling. T20 brought the game back in a big way. The stickiness is far higher than it is for the other forms of the game.”

    Marketing is of paramount importance: The main challenge for IPL is for the franchises to build up fan clubs. After all, Indians are not used to cheering at a local level. As Gupta notes, the key challenge for each of the franchisees is getting fans of that state to identify with the team.

    The first step in that direction was to have names that reflect the city. So Emerging Media christened the Jaipur team as Rajasthan Royals. The aim is to convey the pomp and regal splendour of the city.

    Reliance has called their team Mumbai Indians to show the character of this city. They, like the other franchises, will run a 360-degree marketing initiative with a strong local flavour.

    Glamour is also an important quotient in the marketing strategy. Cricket and Bollywood are two religions in India. Mix them and the result is potent. For instance, Bangalore has roped in actresses Katrina Kaif and Deepika Padukone for a music video to promote their Royal Challengers.

    A push for domestic talent: One of the great things about the IPL is that it gives youngsters the chance to prove themselves. At the second auction, a draft for the Under 19 was held. This was to ensure that in a few years time India will have a young talent pool who are experts in this format of the game.

    RoI: There are several revenue streams available for franchisees. There are central revenue streams, which include a share of the TV rights. The franchisees will get 80 per cent of TV revenues in the first five years and 60 per cent from the next five. They will also get 60 per cent of sponsorship revenues. The franchisees get all local revenues.

    The revenue will come from many sources including gate revenues, franchisee shirt sponsorship, local sponsorship, licensing programme and uniform merchandising.

    Reliance and Emerging Media are looking at a three-year time frame to break even. If, however, the IPL takes off, then that period could be sooner.

    Gupta adds that corporate involvement is the best thing that could have happened. “Now you will see more accountability from the players. If a corporate house has paid over a million dollars for Dhoni, then he better perform. It can no longer be a case of doing well in one match and taking it easy for the next three.”

    Performance is key in brand perception and each franchise will be doing its utmost to ensure that perception is not hurt by a lack of on-field performance.

    Infrastructure will get a boost: Corporates will back infrastructure creation like academies and training camps since these are the places where talent will bloom.

    Mindshare’s Hiren Pandit says that Deccan Chronicle is looking at grassroots activities. There are plans to take this concept to schools and colleges. Therefore, there is a larger picture at stake.

    A mix of caution and optimism: As far as advertiser interest is concerned, DLF, which lost out on the franchise bid, has taken the IPL title sponsorship. Hero Honda is the co-sponsor.

    Sony Entertainment Television (Set) India, which has telecast rights for the matches, has closed its advertising sales. Set India CEO Kunal Dasgupta says ad sales revenues have already crossed Rs 2 billion.

    Pandit says that companies that get involved with the IPL early will reap the benefits in the long run. When asked about the mix of sports and entertainment, he says that for IPL it is important that while the entertainment quotient like the opening ceremony is good, the cricket played should be serious.

    “It should not be treated as a tamasha. Otherwise you lose out on both,” warns Pandit.

    Lodestar Universal CEO Shashi Sinha, though, has doubts over whether the high rates of sponsorship are worth it for clients. In his opinion, it might be over-priced. “If the IPL does not live up to expectations of advertisers, there will be losses,” he cautions.

    IPL could boost globalisation of cricket: What IPL might do is globalise the game. T20 is, in fact, the best way to get new countries like China involved with the game. Since it is only three hours long, it is easier to get new audiences to sit through it. Adam Gilchrist seconds this view saying that it is important that other nations start playing the game.

    Gilchrist also says that IPL should be given time to grow. It is important not to be pessimistic about it straight away. One will get an idea of how it is faring after a few years, he adds.

    Conclusion: BCCI VP and DLF IPL chairman and commissioner Lalit Modi is very confident that the IPL will mark the dawn of a new era in Indian cricket. One would, however, be better served by not getting bowled over by all the hype and hoopla that is surrounding what could well be termed the ‘gentleman’s game’ on steroids. The maidens may be bringing in sex appeal to the new format but how the event fares over the next three years will be the real test to assess where the IPL, and for that matter ICL, stand.

  • ‘We will breakeven after the third year’ : Fraser Castellino- Emerging Media CEO

    ‘We will breakeven after the third year’ : Fraser Castellino- Emerging Media CEO

     The Indian Premier League (IPL), which kicks off next month, has brought in $2 billion into the Twenty20 format over a 10-year period, involving big corporates like Reliance Industries and Bollywood Badshah Shah Rukh Khan.

     

    Emerging Media, which has two other shareholders in Sporting Investment Group and Lachlan Murdoch, has bought the Jaipur team franchise for $67 million and is hoping to rake in profits after the third year.

     

    Indiantelevision.com’s Ashwin Pinto caught up with Emerging Media CEO Fraser Castellino to find out about his plans for the team and the impact IPL will have on the game.

     

    Excerpts:

    What prompted Emerging Media to be involved with the IPL?
    We have been in the sports business since 2005. Our first venture into cricket was when we bought the management rights for the Leicestershire County Cricket Club. Then we did an international T20 tournament that people today call the Champions Tournament.

     

    We came into India in 2006 and launched the reality show Cricket Star based on the T20 format. We are looking for the next Indian superstar. We saw IPL as a big opportunity as we also have experience in running clubs.

    What is the IPL trying to achieve?
    The IPL is BCCI’s attempt to bring in funds and get corporates involved with the development of cricket. The Board is trying to improve the infrastructure and facilities available to players who participate at a domestic level.

     

    By whipping up support for city-based league teams, the BCCI is also trying to bring new fans into the stadiums.

    The tradition of supporting a regional team is not present in India. Do you feel that this will be a hindrance in terms of the IPL taking off?
    I don’t think that there is a hindrance. Everything about the IPL represents an opportunity to grow the game. The challenge particularly for us is to create a fan base that supports the Rajasthan Royals.

    Another issue is that the BCCI wants the IPL to be for India what EPL is for English soccer. At the same time, the players are with EPL for several months each year and there is no conflict with an international schedule. How will IPL manage to do this?
    One of the challenges franchisees face is taking the IPL team that participates in the tournament for 45 days and stretching it across the year. The international calendar is packed. We are working with the IPL Governing Council to see how the tenure can be extended. We have a squad of 22 players. While all may not always be available, we need 11 players at any given point in time. We are looking to take the Rajasthan Royals to play in other countries including Australia and England.

    Having bought the Jaipur franchise for $67 million, what breakeven period is Emerging Media looking at from IPL?
    We will be investing $12 million in the first year which includes the payout for the team franchise, player costs, marketing, etc. Our assumption is that the business will breakeven after the third year. If IPL picks up, the breakeven can happen before that.

    How much will Emerging Media spend towards marketing?
    We will spend close to $2-3 million on this. A 360-degree campaign will break shortly. O&M has put this together. There will be a TVC, radio spots and outdoor activities. There will also be a school, college and mall activation campaign. This will happen in Jaipur, Delhi NCR, and in Gujarat.

    What brief was given to the agency?
    The brief is that the campaign must appeal to people at a local level. It must make people want to be supporters of Rajasthan Royals. It must inspire people to either switch on the television or come to the stadium.

    Have you tied up revenue deals?
    We are in advanced talks with companies for sponsorship deals. We also have merchandising and licensing activities. Besides, there are central revenue streams including ad and broadcast rights.

    Is there any chance that Emerging Media might sell a stake in the IPL team?
    Not in the first year. We might sell a stake later if we want to inject fresh capital into the company.
    ‘One of the challenges franchisees face is taking the IPL team that participates in the tournament for 45 days and stretching it across the year‘

    What is the strategy you followed in selecting your team?
    Our strategy was clear. We knew that there would be at least two auctions. The first auction had the stars. We knew that there was also a lot of talent that was not a part of that auction.

     

    During the first auction, we picked players and also set price points at which we felt that they had good value for us. If they exceeded these price points, we let them pass.

     

    We did our research, and went after certain players. Now when you look at my team, they are at least as good as the others if not better. And we have spent $3.5 million while the others have burnt $5 million.

    Are performance and marketability of players of equal importance?
    Performance is more important. You can have glamour and entertainment, but at the end of the day we are here to win matches. Marketability has its place but it is not the primary determining factor for us.

    Could you talk about the branding of the team and how your star player Shane Warne will be used?
    When we selected Jaipur, we were clear that we wanted to be in the state of kings. The name “Rajasthan Royals” reflects the characteristics of that state.

     

    Shane Warne was a strategic choice that many people do not understand. He has an incredible record in county cricket. When we signed him as both captain and coach, other teams who have specialist coaches were surprised. Specialist coaches are fine but Warne transformed the fortunes of Hampshire in county cricket. He took them from being a non-performer to a team to be reckoned with.

     

    The IPL is about youth and developing domestic cricket. Now that he has retired, Warne is keen to come in and give back to the game by helping youngsters. The IPL is the perfect platform for him to do just that.
    Has Emerging Media also appointed a consultant to help its IPL team form a cohesive unit?
    We have a support team in place that includes physiotherapist John Glocter and assistant coaches. We believe that our team will be inspired by our captain and the support structure, and become a cohesive unit.

    Has T20 brought sports and entertainment closer?
    The emergence of T20 has been interesting because as working life has become more hectic, people are increasingly looking for instant gratification.

     

    In India, while it has not been played often, we feel that this format will be well accepted. Since the IPL games will be played in floodlit stadiums in the evening, it will attract more women and families to enjoy an evening out.
    How will IPL broaden the corporate involvement with cricket overall?
    One of the things that will happen is that IPL will support academies, coaching centres, etc. These are feeder systems into T20 cricket.
    How did the idea of doing Cricket Star come about?
    We wanted to be a body that works with the BCCI but at the same time goes off into areas where it has not managed to find talent. We believe that there are people who, while possessing talent, do not have the money to turn up at the BCCI’s coaching camps. We give them the chance to spend just two days with our experts and decide if they are good enough or not. If they are good enough, the sky is the limit.

    How have you grown the event over the years and how successful has it been in uncovering hidden talent?
    I think what Cricket Star lacked in the first season was the gratification platform. It wasn’t clear what would happen with the chosen talent. Today anybody who is selected gets a contract with the Rajasthan Royals. The format has not changed much in terms of the testing process.

     

    We are clear in terms of what we look for in a T20 cricketer. Last year, we found two boys who were very good. But we had restricted entries to those who were absolutely fresh and had not played first-class cricket. They had never been part of an under 15 or under 17 squad. This year, we have opened it up for everybody.

    Finally, are you looking at other sports?
    Yes! We are interested in soccer, tennis and golf. There is potential for these three sports to grow in the country. We are looking at different options in terms of how to go about it. In terms of whether we do a reality show around these sports, it depends on the level of interest. There are many things that can work in sport provided you are willing to invest and watch it grow gradually.
  • ‘Why would BCCI want its biggest new property on a new channel?’

    ‘Why would BCCI want its biggest new property on a new channel?’

    Looking at the larger perspective, what have been the big challenges the broadcast sector faced and will face, going forward?
    The pathetically slow pace of digital rollout (Cas) has been the biggest challenge for existing players. Though I do believe digital distribution will come into play from 2008 onwards.

    Combating all these new players will be the big upcoming challenge. The (leadership) pecking order will have to be reestablished. Star is not complacent in its position of number 1. Even Zee as a challenger is not complacent. Everybody will face challenge. The whole media business will face challenge.

    The industry is seeing huge churn now. The channel explosion is going to further fragment audiences. We will soon have 9/10 channels in each of the genres – news, sports and movies.

    You say pathetically slow digital rollout on the cable front is the biggest challenge for the new players as well as the existing players. But if we look at 9X, the numbers they are drawing are not due to cannibalization, but due to new viewers.
    It’s not cannibalization of GEC but other genres like music.

    So you don’t believe that people have an inherent desire to consume entertainment content but may have been tuned off by the lack of variety presently on offer so they are trying out channels like 9X?
    Its not just 9X. Even Bindass is getting new viewers. 9X is making a lot of noise but give me a name of one show that stands out. On NDTV Imagine also, nothing will stand out.

    What do we have in 2008. BCCI’s Indian Premiere League will take off and what else?
    I don’t know on which channel it will take off. I hope it is on ours.

    But as you yourself said, there will be new sports channels launching and we should expect bids from new players.
    They can of course bid but why would BCCI want its biggest new property on a new channel? Its not just money, they (the cricket board) have to make it successful.

    New players should enter digital distribution in the cable front. More people are required, more funding is required

    We do have an example of Ten Sports, which launched with World Cup Soccer in 2002.
    There were only two channels – ESPN and Star Sports – then. Today there are seven channels (DD Sports, Ten Sports, Zee Sports, ESPN, Star Sports, Star Cricket, Neo Sports). Additionally, Max is half a sports channel.

    Each time you launch a new channel, the space will get further fragmented. There is too much out there. There is going be a blood bath.

    What about a platform proposition, like in the case of Sky in the UK? For a rights holder, could IPL potentially become as critical as EPL was to Sky?
    Firstly, in India no exclusivity is being allowed. Secondly, the new guys bidding for the rights are channels which are not yet launched. If platforms like Dish TV or Reliance were to buy the rights, then I would understand but the guys buying are unknown people. They are all startups. They are doing it for their business valuations. They are not bothered whether IPL succeeds or not. Whereas BCCI wants IPL to succeed. IPL will collapse with new players.

    Coming back to the year ahead, how do you see 2008 for your network and the industry?
    As far as the industry is concerned, we would want to see the Reliance launches happening. It’s a very big thing. Then IPL should succeed. New players should enter digital distribution in the cable front. More people are required, more funding is required.

    As for ourselves, we will take some other new initiatives and continue to build our business. We need one hit show. Saat Phere was the starting point for Zee. I need one hit show from Monday to Thursday. That is my perspective. I have no problem in any other area of my business except that. We need to build up, which is not happening.

    Each channel is doing its own thing and so are we. In the meantime, I am doing syndication and international distribution. I am doing everything right except getting that one hit show.

  • HC refuses stay on sports telecast ordinance

    HC refuses stay on sports telecast ordinance

    NEW DELHI: The Delhi High Court today refused to stay the operation of the ordinance asking private sports channels to share live feed of cricket and other sports events with public broadcaster Prasar Bharti.

    A division bench headed by Justice Vikramajit Sen adjourned the matter till 15 February for further hearing.

    Senior Counsel Dushyant Dave, appearing for Prasar Bharati, pleaded that the ordinance could only be stayed under extraordinary grounds.

    In any case, he argued, the conditions to share the live feed with the Prasar Bharati was part of the tender documents, and very much known to Nimbus Communications.

    The reply filed by the Government to the petition by Nimbus challenging the Sports Broadcasting (Mandatory Sharing with Prasar Bharti) Ordinance 2007 said it had been made clear to the Board for Control of Cricket in India (BCCI) that any party getting the rights to telecast the matches would have to share the live feed with Doordarshan and All India Radio, the application filed by the government in reply to the private channel contended.

    Additional solicitor general PP Malhotra, appearing for the government, said the petition should be dismissed as it was not the fundamental right of Nimbus, who own Neo Sports channel to monopolise the telecast of cricket matches. In any case, Nimbus should abide by the contract it had signed in February 2006 to share the live feed.

    Terming it as “bad in law”, the petition had said, “The ordinance transgresses the constitutional limits and apart from violating the petitioner’s fundamental rights, it also interferes with the power of the court to review the circular enforcing the private channels to share the feed.”

    On 23 January, in an interim order, the court had allowed Prasar Bharati to download the feed of Nimbus Communications and telecast the India-West Indies ODI series in a delayed transmission of seven minutes on DD and broadcast commentary live on AIR.

    The High Court has decided to merge the hearing of the appeal by Prasar Bharati against this order, and the petition by Nimbus challenging the Ordinance.
     
     

  • Prasar Bharati moves Delhi HC against deferred live telecast

    Prasar Bharati moves Delhi HC against deferred live telecast

    NEW DELHI: A day after terrestrial broadcaster Doordarshan was granted “deferred live” telecast rights to the ongoing cricket series between India and the West Indies, Prasar Bharati approached the Delhi High Court again on the matter.

    A two-judge bench of the Delhi High Court has listed for tomorrow arguments in the appeal filed by the pubcaster against the order yesterday by a single-judge directing Nimbus, the rights holder for BCCI organized cricket events in India, to give the feed to Doordarshan with a seven-minute time lag.

    Prasar Bharati sources told Indiantelevision.com that the pubcaster’s appeal was based on the validity of the Uplink-Downlink Guidelines issued in November 2005 that perforce allows DD to get the telecast feed. The pubcaster’s argument is that the guidelines are clear that the live feed should be given to both Doordarshan and AIR and that there is “no provision (in the guidelines) for a deferred telecast.”

    Prasar Bharati has contended that viewers in the country cannot be divided into two segments and that there has to be equitable distribution of signals for all viewers, irrespective of whether they are linked to DTH, cable or non cable homes.

  • DD to telecast cricket with 7-minute time lag

    DD to telecast cricket with 7-minute time lag

    NEW DELHI: Millions of viewers who don’t have access to the Nimbus owned Neo Sports can finally heave a sigh of relief. The Delhi High Court has ruled that terrestrial broadcaster Doordarshan can telecast the ongoing cricket series between India and the West Indies “deferred live” with a seven-minute delay.

    Seven minutes on an average comprises two overs bowled on the trot. All India Radio will, however, be allowed to broadcast its commentary live, with no time lag.

    The consensus emerged after the High Court, in its order issued today, ruled that 50 million viewers (who don’t have cable TV access) cannot be denied the right to watch the game.

    The timing of the ruling is critical since it comes a day ahead of the second One-Day International to be played in Cuttack, Orissa. It may be recalled that millions of viewers missed out on the action Sunday that saw India defeating the West Indies in the first ODI that was played at Nagpur.

    While issuing his orders, Justice SK Kaul made it clear that this was an interim ruling and that the final decision about the Sri Lanka series (that follows immediately after the current four-match Pepsi series gets over) will be taken on 8 February.

    On the petition filed by Nimbus yesterday, the court asked Prasar Bharati to file its replies by 29 January, to which Nimbus will have to file its rejoinder by 1 February.

    Nimbus’ counsel argued that it would stand to lose cmmercially if Doordarshan were allowed a live feed and said DD was being adamant despite concessions offered by Neo Sports.

    Reacting to the news, information & broadcasting minister Priyaranjan Dasmunsi welcomed the decision of the court, stating it (the ruling) was only fair considering DD has “96 per cent reach in the country”.

    Nimbus Sports, the rights holders for the BCCI organized cricket events in India that it had acquired for a whopping $ 612 million, had earlier offered to give the feed to Prasar Bharati, but only under certain specific conditions, and these were not acceptable to the pubcaster.

    Nimbus had originally suggested a 15 minute deferred telecast on DD referred ‘as live’. Nimbus also did not agree to DD showing the matches on its DTH platform DD Direct Plus.

    Nimbus had said if at all it shares the feed, the signals would have to be encrypted so that it reached houses only on the terrestrial network and not those that get DD signals through cable TV.

    The talks broke down after Prasar Bharati officials, citing previous government orders and court rulings they claim had gone in their favour, said they should get live feed of the cricket series without any conditions, and that it was also to be shared on DD’s DTH platform.

    Following the breakdown of talks DD officials had gone back to taking the cover of the Uplink-Downlink Guidelines that perforce allow DD to get the telecast feed.

  • No cricket on DD as Nimbus refuses to buckle

    No cricket on DD as Nimbus refuses to buckle

    MUMBAI: In what is a first on Indian Television, a home cricket series kicked off today without the telecast being available on national broadcaster Doordarshan and All India Radio.

    India’s victorious start to the four-match Pepsi series One-Day International series against the West Indies at Nagpur was not available on terrestrial television as well as on cable homes that did not carry the Nimbus owned Neo Sports channel.

    With talks breaking down yesterday between Prasar Bharati and Nimbus Sports on sharing the live feed, the industry was waiting to see whether the government would push through an ordinance to implement the Downlinking/Uplinking Guidelines issued by the information & broadcasting ministry in November 2005.

    The guidelines make it compulsory for sports telecast rights holder channels to share the live feed of important sporting events with Doordarshan and AIR by entering into a commercial agreement. The terms provide for revenue sharing of 75:25 in favour of the rights holders.
    Nimbus Sports, the rights holders for the BCCI organized cricket events in India, had offered to give the feed to the pubcaster, but only under certain specific conditions, and these were not acceptable to the Prasar Bharati.

    Nimbus suggested a 15 minute deferred telecast on Doordarshan’s terrestrial channel referred ‘as live’. Thus, people having cable TV would get live feed on Neo Sports and those watching DD would see it 15 minutes later.

    Nimbus also did not agree to DD showing the matches on its DTH platform DD Direct Plus.

    NIMBUS READY TO GIVE FEED IF PRASAR BHARATI GIVES COMMITMENT TO ENCRYPT TERRESTRIAL SIGNALS

    Nimbus has said if at all it shares the feed, the signals have to be encrypted so that it reaches houses only on the terrestrial network and not those that get DD signals through cable TV.

    Nimbus today offered a way out of the impasse by declaring it was ready to provide the live feed if Prasar Bharati agreed to encrypt its signals in the next two to three weeks.

    “Till such time as DD puts encryption into place, about 2-3 weeks, Nimbus has offered to provide the live coverage TV signal to DD,” Nimbus chief Harish Thawani has been quoted by Zee News as saying from Mumbai.

    “We are highly committed and want to provide the cricket telecasts on DD also. The ball is in DD`s court,” he said.

    Thawani said Nimbus was insisting on encryption as the satellites used by DD have significant signal dispersion into many neighbouring countries, often as far as the Middle East and Singapore.

    “The growth of sports in any country is substantially dependent on the revenues it gets from sports channels and those revenues would be substantially destroyed if the rights of sports channels are not protected, having a terrible impact on sport itself,” Thawani argued.

    Till now though, Prasar Bharati officials, citing previous government orders and court rulings that they claim have gone in their favour, have been adamant that they should get live feed of the cricket series, without any conditions, and that it also be shared on DD’s DTH platform.

    Following the breakdown of talks DD officials have gone back to taking the cover of the Uplink-Downlink Guidelines that perforce allow DD to get the telecast feed.

    The ball is now really in the government’s court on what its next move will be.

  • ‘Rolling out of Cas has been the most significant development’

    ‘Rolling out of Cas has been the most significant development’

    One of the most significant developments of the year has been the re-emergence of Zee Network and especially Zee TV as a clear market leader in the entertainment segment when it surpassed its closest rival Star. Its ‘reality show’ Sa Re Ga Ma Pa registered an all time high TRP/viewership amongst different age groups.

    Zee Network has also launched a new youth centric family entertainment channel ‘Zee Next’ in December 2007. With BAG Films, NDTV, UTV and TV-18 also planning to bring channels of different genres, the viewers can expect a wide variety of content in 2008.

    However, the year has not been so good for sports channels having cricket/BCCI rights as after losing legal battle they had to compulsorily share their feed with Doordarshan in respect of One Day and Test matches under the downlinking guidelines.

    The attempt on the part of government to create consensus on the Broadcast Bill received a setback when certain entertainment channels and news channels opposed to the introduction of the Bill, forcing the government to defer its introduction. Most of the media houses have expressed the view that rather than the government stipulating content code by way of legislation, they would like to have a self-regulatory content code.

    With BAG Films, NDTV, UTV and TV-18 also planning to bring channels of different genres, the viewers can expect a wide variety of content in 2008
    _____****_____

    They apprehend that proposed bill and content code is an attempt on the part of the government to curb the freedom of press through the back door. However, at the same time there has been a vociferous demand from various section of society to impose some kind of control on the ‘unregulated content’ being currently beamed.

    I am of the view that there is an imperative need to have a regulatory regime in the broadcasting sector and the Broadcast Bill is a step in the right direction. The proposed legislation contains various provisions which are not only in the public interest but also in the interest of the broadcast sector, which would not only bring order in the sector but would also stimulate the much needed investment so as to provide an opportunity to the sector develop and grow in a focused manner.

    While there are certain provisions in the bill e.g. provisions pertaining to cross media ownership and restriction in holding shares within electronic media and distribution sector which may act as an impediment to the overall growth of the sector, the media sector has brought to the notice of the government that the present era is that of globalisation and consolidation by way of merger and acquisition, and these kind of restrictions act as barriers for accessing and optimally utilising the resources of capital formation for the growth and development of the sector.

    The Indian media industry, especially Indian broadcasters have to compete with global media companies. In order to match the might of those companies, they must have adequate technology, capital and manpower resources. Thus, the process of capital formation is one of the key ingredients to acquire and accumulate competitive strength and these kinds of restrictions are unwarranted. The government has fairly agreed to review these provisions and has also entrusted the task of developing a draft content code to News Broadcasters Association.

    In my view the industry should welcome the Broadcast Regulator, as an effective Regulator protects both consumer interest and the industry from arbitrariness
    _____****_____

    In my view the industry should welcome the institution of a Broadcast Regulator in as much as an effective Regulator protects the consumer interest and also protects the industry in question from arbitrariness and interference of the government of the day. The media industry has grown too large and too complex and as such it is in the interest of broadcasting sector itself to have a Regulator. However the Regulator must be autonomous, and independent of the Executive.

    Towards the fag end of the year certain court orders and judgments have also come, in which there have been observations that Broadcasters/Media need to observe general community standards of decency and civility in news content, taking particular care to protect the interests and sensitivities of children and general family viewing. The Courts have directed the government to expeditiously bring the content code in the Broadcasting sector.

    It is high time the industry responds to this and effectively works with the government in finalising an appropriate self-regulatory content code at the earliest.

    There have been a lot of regulatory developments during the year. Trai has brought out Quality of Service Regulations for DTH which outline service bench marks to be followed by DTH operators. This particular Regulation mandated the commercial inter-operability for Set Top Boxes (STB) in DTH service.

  • ‘Twenty20 injects new life into sports broadcast’

    The sports genre will be known for four key things in 2007. Firstly, the upheaval that happened regarding cricket. Second, a breakaway initiative by the Essel Group forced the BCCI to wake up from its deep slumber. Third, a new format emerged that rejuvenated the bat and ball game. Fourth, even if cricket goes down there is no other sport to replace it.

    As regards the first point, there was a huge build up for the World Cup in March. Everyone from broadcaster Sony to marketers, advertisers had a calypso tune on their lips. Pepsi, one of the ICC’s partners, even went Gold for the event. Two matches into the World Cup and things went into free fall. India was eliminated. Information available with Indiantelevision.com indicates that Sony lost at least Rs 800 million as a result of unsold inventory. The overall loss to the economy from the World Cup debacle is believed to have been in the region of Rs. 2.5 billion.

    However, a few months later things had come full circle. This was due to two things. India won the T20 World Cup. Additionally, Twenty20, which was initially looked upon with some scepticism, proved to be a perfect fit for today’s attention-challenged youth. As a format it has proved to be a win-win situation for all parties involved – TV channels, advertisers and viewers.

    In the ultimate analysis, India’s unexpected showing in the T20 World Cup in South Africa looks like having the kind of long term impact that India’s even more unexpected victory in the 1983 ODI World Cup did.

    The biggest reaper of the T20 windfall was of course ESPN Star Sports (ESS). The T-20 success also means that ESS will get more bang for its buck that had been anticipated when it won the ICC rights late last year with a $ 1.1 billion punt.

    That apart, there is the BCCI’s ‘officially sanctioned’ Indian Premiere League, which if it takes off in the manner that IPL chairman Lalit Modi is envisaging, could well be to cricket what the Uefa Champions League currently is to soccer.

    It is worth recalling here though that it was Subhash Chandra’s Essel Group that first bet on the Twenty20 format when in April it announced the launch of its breakaway Indian Cricket League (ICL). The stated aim of the ICL, behind which Essel put in an initial investment of $ 1 billion, was to unearth talent from India and also to raise the standards of domestic cricket.

    And despite the Indian cricket board’s best efforts to ensure that the ICL remained stillborn, the fact that the inaugural tournament was staged with moderate success highlights one point. Carping apart, ICL has clearly validated itself. Suffice to say that the ICL’s calendar of five events for 2008 speaks for itself as regards Chandra’s intent to stay the course.

    What the IPL and ICL will likely do is that just as Europe is where the world’s best soccer talent congregates, the same will happen in India vis-?-vis cricket.

    The BCCI’s response to Chandra may have in initially been borne out of its outrage at the ‘temerity’ of a private body’s to take it on, but the positive fallout was that it increased the pay packet of domestic cricketers to prevent further exodus. Additionally, when it does launch its IPL, it will go that extra mile to ensure that it’s a success for all those involved in it.

    The upcoming IPL in April is structured as a franchisee-based Twenty20 Series with top international players. The likes of Russell Crowe, Shah Rukh Khan and Vijay Mallya have bid to own a team.

    Lodestar Media CEO Shashi Sinha feels that there is room for both. Also there are clients who will get in as the risk factor is less. Numbers may not be too high but they will not shoot down as was the case with the World Cup. A loyal audience is what clients will pay for as long as the price is right. Even a sixes event will work as long as it is pushed at a national level.

    As far as the rest of the sports broadcasters are concerned, 2008 will be key for Ten Sports as a host of cricket rights it has including Pakistan and Sri Lanka come up for grabs. Whether its association with Zee affects its position with cricket boards remains to be seen. Still, WWE has ensured that the channel remains steady in terms of weekly reach.