ITV

Tag: Elara Capital

  • TV segment ad revenue decline to be in range of 20-25% at end of FY21, report estimates

    TV segment ad revenue decline to be in range of 20-25% at end of FY21, report estimates

    KOLKATA: The broadcasters have had rockier than the usual first half of the year due to ongoing crisis as the advertising spends fell drastically. While the market is slowly recovering, ad decline could be in the range of 20-25 per cent at the end of FY21. The report published by Elara Capital also predicts that Zee Entertainment Enterprises Limited (Zeel) and TV Today Network (TV Today) will outperform other broadcasters in terms of ad revenue.

    Zeel’s growth will be driven by Zee Anmol moving back towards FTA and strong gains in the south based regional genre, as per the report. It further adds that TV Today will have an advantage of the shift in the news genre due to sharp viewership gains compared to other genres, which has tapered off post the unlock. However, it still remains high compared to pre-Covid levels. Aaj Tak being the leader in the news genre in the first half of FY21, the traction for ad spends in the festive season is expected to remain healthy along with some benefits during Bihar elections, thanks to strong market share for election poll viewership.

    It re-emphasises that the re-conversion of channels like Zee Anmol, STAR Utsav from paid to FTA will continue to benefit the listed broadcasters like Zeel positively as they have been gaining significant market share within the GEC genre attracting ad revenues. Hence, the report predicts the ad revenues from these channels to move back to pre-NTO levels, which had plummeted after their conversion to paid channels post NTO 1.0 implementation.

    Genre-wise, Hindi and regional GEC will outperform TV ad spends, while other genres like English, music, infotainment etc. will underperform given the continued weakness witnessed in the English entertainment genre and struggle of music, infotainment in attracting ad spends.

    The report says that the pricing of GEC genre has seen a sharp recovery and down by merely 25-30 per cent narrowing the gap from 60-65 per cent in April-May. However further recovery for pricing in the GEC genre is expected only after the Indian Premier League (IPL) i.e. November onwards, as the latter has extracted a huge chunk of ad budgets. It also says that the festive uptick coupled with the resumption in GEC ad spends post the IPL season to bode well for the broadcasters, during the first half of the third quarter leading to 15 per cent growth year-on-year.

    Nonetheless, the report mentions that broadcasters would not be able to close the quarter with the festive gains due to some drop towards December. Hence, they will end overall Q3 at a 7-8 per cent growth excluding IPL. During the fourth quarter, broadcasters are expected to report a growth of 10-12 per cent given the low base of FY20 impacted by Covid2019. Based on these expectations, FY21E ad decline translates to average 17- 19 per cent (ex-IPL).

  • Telcos are great partners for OTT discoverability and monetisation

    Telcos are great partners for OTT discoverability and monetisation

    MUMBAI: With an explosion in the smartphone market and rise in the number of OTT channels operating in India, telco-OTT partnerships are well-strategised and the most beneficial for content platforms to gain eyeballs and drive monetisation asserted a panel speaking on the topic of “Captive Audiences of the Telecom Trace” at the recently concluded Business and Tech Track of Indiantelevision.com Vidnet 2019 summit.

    Sitting on the panel, moderated by Elara Capital VP – research analyst (Media) Karan Taurani, were ZEE5 Global chief business officer Archana Anand, IndiaCast Media Distribution group CEO Anuj Gandhi, Apalya Technologies founder & CEO Vamshi Reddy, Lionsgate South Asia MD Rohit Jain, Shemaroo Entertainment COO digital Zubin Dubash, and Hungama Digital COO Siddhartha Roy.

    Roy mentioned that as aggregators, telecom companies are greatly positioned as single payment option for most of the OTT channels and Zubin Dubash vouched for the ability of telco partners to get greater traction on content sites and drive up numbers.

    Taking the example of Ditto TV, the VOD service from ZEE, Archana Anand shared that partnerships with telecom companies have always been fruitful for the ZEE network’s OTT offerings, for both consumer acquisition and marketing.

    She said, “I think, back then, we were the first ones to go across and do partnerships with the telcos and we created quite a stir in the market because of the lovely sachet pricing we were offering. The telecom partners ensured that they are paying on behalf of the consumers and it gave us brilliant traction. I believe, we managed to get the highest subscriber base in those days.”

    Anand added that there can’t be a better distribution network than telcos as it also translates into a ‘fantastic payment mechanism’. “With all the hesitancy around credit card payment, etc., the direct carrier billing is something that the consumer can be confident about and adapt easily.”

    Vamshi Reddy seconded her thoughts as he quipped that telcos can become the easiest ways for the industry to build a monetisation model around the whole content consumption. He noted that with fragmentation happening in the OTT space, the telecom partners can provide a universal experience to users in a seamless manner.

    Gandhi, however, highlighted that in the long run, the issue of ownership of the consumer can arise. “This challenge will take some time to settle, but from a pure bundling perspective, the discoverability on TV is extremely easy, and that is something that the OTT platforms are struggling with. Telcos can help in solving that.”

    To this, Anand noted that today there is a great symbiotic relationship between the OTT platforms and the telcos as the former wants to own the content and the latter, the consumer. But the platforms need to be mindful of the fact that it gets constant data from its partners and also keeps on communicating with the consumers through in-app notifications to ensure scalability of the partnerships in the long run.

    Jain added another dimension to the conversation as he noted that while telecoms are great in helping the OTT content reach the smaller screen, there is a wide array of opportunities lying in the big-screen space, which the OEMs can latch on to.

    He said, “In some ways, this is life coming to a full circle as all of these (telcos, OEMs, etc.) are actually (equivalent to) DTH and cable companies. All we need now is an ecosystem to emerge and thrive and whoever does a good job of aggregating content will eventually become the winner.”

  • CarDekho.com raises $50 million in funding led by Hillhouse Capital

    CarDekho.com raises $50 million in funding led by Hillhouse Capital

    MUMBAI: CarDekho.com has closed its second round of funding and has raised $50 million. The funding was led by Hillhouse Capital with participation from Tybourne Capital and Sequoia Capital.

    The single transaction funding was concluded early this week. Elara Capital acted as the exclusive financial advisor to the transaction. With this the parent company Girnar Software is now valued at $300 million.

    Sharing plans about this venture GirnarSoft CEO and co-founder Amit Jain believes that together CarDekho.com and Gaadi.com are by far the largest players in online auto classifieds space by revenue and traffic in the country. Jain’s vision is to be company with global footprint through its innovative products and services.

    “This is the largest quantum of fund raise in this segment in India so far. We see the second round of investment as an endorsement of our strategy and progress so far. Our revenues have grown three-fold since 2013 when we received our first round of funding from Sequoia, and we are doubling our lead generation Y-O-Y. This is the time we are looking to rapidly expand our business and therefore the funding adds to our fast paced growth in the online auto portal segment,” added Jain.

    Jain feels that this is a very exciting time for the company and a high point in the Indian automobile industry.

    “With this funding we have plans to enhance the technology and services of CarDekho.com along with increased focus on brand building and marketing initiatives of the company. As the #1 auto portal of the country, it is also our responsibility to develop the category by providing the best offerings to consumers, best services for dealers and top notch support to OEM manufacturers,” said Jain.

    Commenting on the investment, partner of Hillhouse Capital David Rhee stated that it observes a tremendous growth opportunities in the online automobile classified market in India. “CarDekho, as the clear leading player in this space, is the best positioned to take advantage of this market. We are in the early stages of the development of the auto industry and its transition to online. We are excited to be partnering with such an exceptional management team to continue to build and grow this business over the long term,” Rhee said.

    Tybourne Capital portfolio manager Eashwar Krishnan added, “We have a substantial amount of capital invested across global classified assets and are excited to add CarDekho to our portfolio. We view CarDekho as a direct comparable to Autohome in China (another Tybourne investment), and as the leader in the space, we expect CarDekho to capture a substantial portion of the auto classifieds market in India. We look forward to partnering with the management team as the company moves into its next phase of growth.”

    Sequoia Capital partner Shailesh Lakhani said, “CarDekho has redefined the purchase experience for car buyers in India. Led by Amit and Anurag, the company has assembled one of the best internet teams in India. We are excited to welcome Hillhouse and Tybourne as new investors to CarDekho and their support as we continue the journey to building a large internet auto company.”