ITV

Tag: Eric Salama

  • Kantar says TAM to apply for registration within time given by Delhi HC

    Kantar says TAM to apply for registration within time given by Delhi HC

    MUMBAI: We had last reported that Kantar Market Research Services, one of the shareholders of India’s only TV ratings agency TAM, got a stay from the Delhi High Court on the provision regarding cross-holding of shareholders in the regulations for television ratings agencies.

      

    The court had asked Kantar to ensure TAM complies with the rest of the provisions in the regulations and granted it time to apply with the ministry of information and broadcasting for registration as a television ratings agency.

     

    TAM was allowed to apply for registration in two weeks from the date (15 February, 2014) the regulations came into effect.

     

    Kantar is confident that there will be no delays from TAM’s side in submitting its registration application to the MIB.

     

    Speaking on behalf of TAM, Kantar CEO Eric Salama says, “We are seeking to comply with all the terms of the regulation, cross ownership aside, in the specified period. We will be applying to the Ministry and will not be asking for any further extension.”

     

    The court has also allowed TAM to continue publishing its television ratings till it decides on Kantar’s petition. The court will further hear the case on 6 March. And Salama hopes wiser counsel will prevail on the issue of cross-holdings in TAM. Says he: “As long as the system is transparent so that the same data is released at the same time to all users and there is suitable governance, the shareholding structure makes no difference to the outcome and shouldn’t be an issue.”

     

    If the court finally rules against Kantar and TAM has to stop churning out its ratings, advertisers will be without any viewership data till the industry-backed Broadcast Audience Research Council (BARC) gets its act together. BARC recently announced that it will present a blueprint of how its viewership ratings monitoring system will work by end-March 2014. It hopes to roll out data to clients by 1 October 2014.

     

    Asked what if the HC rules against Kantar’s appeal and it has to restructure TAM’s shareholding to comply with the regulation,  an optimistic Salama says, “I obviously hope that the court will rule against the cross-ownership clause and enable us to progress without a blackout period.”
     

    For those who came in late, the government’s regulations require television ratings agencies to comply with the following clauses:

     

    1.1 The applicant seeking registration for providing television rating services shall be a company registered in India under the Companies Act, 1956.  

     

    1.2 The company shall make full disclosure, at the time of application, of Shareholders Agreements, Loan Agreements and such other Agreements that are finalized or are proposed to be entered into. Any subsequent change in these, having a bearing on the foregoing Agreements, would be disclosed to the Ministry of Information and Broadcasting, within 15 days.

     

    1.3 The company shall have, in its Memorandum of Association (MoA), specified rating services or market research, as one of its main objectives.

     

    1.4 The company’s MoA shall not include any activity like consultancy or any such advisory role, which would lead to a potential conflict of interest with its main objective of rating.

     

    1.5 Any member of the Board of Directors of the television ratings company shall not be in the business of broadcasting/ advertising/advertising agency.

     

    1.6 The Company shall have a minimum net worth of Rs 20 crores. The net worth shall be calculated as per the prescribed proforma and shall be certified by the Statutory Auditor of the company.

     

    1.7 The company shall comply with the following cross holdings requirements.

     

     (a) No single company/legal entity, either directly or through its associates or inter-connected undertakings, shall have substantial equity holding in more than one ratings agency operating in the same area.

     

    (b) The cross-holdings restriction will also be applicable in respect of individual promoters besides being applicable to legal entities.

  • There is no Plan B for TAM if we lose our appeal in court: Kantar’s Eric Salama

    There is no Plan B for TAM if we lose our appeal in court: Kantar’s Eric Salama

    The Indian television industry is possibly heading towards a crisis of an audience ratings blackout. TAM Media Research, a joint venture between Nielsen (India) and Kantar Media Research, is currently the only agency that provides television audience viewership measurement services to advertisers and broadcasters.

     

    TAM has hit a roadblock in India with the government issuing policy guidelines for television ratings agencies in mid-January. It has an impossible deadline of mid-February to ensure that the shareholding in TAM is in accordance with the new policy guidelines.

     

    Apart from having substantial (more than 10%) stakes in TAM, the joint venture partners in the Indian television ratings provider also own advertising agencies in India, which is prohibited in the policy guidelines’ cross-holding norms.

     

    Nielsen appears to have taken a back seat and decided to let Kantar lead the challenge against the government’s new regulations and  let TAM face the situation as it develops

     

    Kantar has filed a petition in the Delhi High Court to get a stay on the shareholding norms specified in the guidelines or at least get an extension on the deadline for meeting meet the norms. There’s less than a fortnight left for TAM to comply with them, and it does not like its shareholders will be able to do so in the short time that was given to them.

     

    The launch of television audience measurement by Broadcast Audience Research Council (BARC), an initiative of advertisers, advertising agencies and broadcasters in India, is likely only by October this year.

     

    If Kantar fails to get some relief from the court, TAM will have to stop releasing audience ratings by mid-February which will obviously result in the absence of viewership being metered and measured till BARC is ready with its own services. And that is something which is giving both advertisers and agencies palpitations. Television audience ratings is a key input based on which advertisers base their advertising plans on.

     

    In order to understand what the situation is and what could unfold, indiantelevision.com’s Vishaka Chakrapani spoke to Eric Salama, chairman and CEO of the Kantar group since 2007. Salama has been with global advertising agency WPP, the owner of Kantar, since 1996.

     

    During the interaction, Salama rued that television ratings has become a matter of public debate and a “cricket ball” for everyone to hit. Excerpts:

     

    How different is it operating in India as compared to other countries when it comes to television ratings?

     

    We operate in most countries with the exception of Iran, Cuba and North Korea.  We’ve never had problems in India before, IMRB is the oldest research agency in Asia and we see India as a key market for us going forward.  We have some of our most talented people here.  The TV ratings market is very different to other markets in that it has become a source for public debate and a cricket ball for people to hit.

     

    How do you see TV ratings agencies progressing in India?

     

    We’ll know soon enough!

     

    Do you believe a ratings blackout is likely to happen? What could happen in such a scenario and how will the industry respond?

     

    Unless the court rules in our favour on cross ownership, we are heading for a blackout which will be extremely damaging to broadcasters, programmers, agencies, advertisers and everyone who cares for the Indian media industry.

     

    Do you think there is space for two ratings agencies to coexist?

     

    It happens in some markets such as Philippines but it’s extremely rare as the industry generally wants one currency for trading.

     

    I believe TAM has also applied to BARC for panel management in the industry-driven television ratings service. How do you see your relations with BARC taking shape?

     

    Once BARC is established, TAM will either be a supplier to them for some services or not.

     

    Should the sample size for arriving at television ratings be far bigger?

     

    If people wanted us to expand our sample to 20,000 we would.  When BARC is established it will be up to them to decide what they do.

     

    Accusations have been hurled at TAM and its credibility has been questioned. Do you think TAM has been judged wrongly?

     

    Some of the comments have been libellous. Many of them have been poorly informed.  TAM has performed extremely well for a long period in a very difficult environment and under huge pressure.

     

    What is the plan B if TAM is not allowed to function?

     

    There is no plan B.

  • NDTV seeks clear answers, asks WPP to stop obfuscating real issues

    NDTV seeks clear answers, asks WPP to stop obfuscating real issues

    MUMBAI: In typical NDTV reportage style, the news broadcaster has fired a fresh salvo at Sir Martin Sorrell seeking answers from the CEO of global marketing communications agency WPP on issues that relate to corruption in televisions ratings in India.

    NDTV (New Delhi Television Ltd), which filed a lawsuit in the Supreme Court of New York on 26 July 2012 against TAM, Nielsen, Kantar and WPP, has sought to know why TAM has not stopped publishing its ratings from 1 July despite assurances by Thomas Puliyel, President IMRB International, a subsidiary of Kantar.

    TAM Media Research, which is owned equally by WPP (through its subsidiaries including Kantar) and Nielsen, is the only agency providing the television ratings service in India.

    The news broadcaster also sought to know if Sorrell was aware that Kantar CEO Eric Salama had apologised to NDTV at a meeting on 11 April 2012 after hearing Robert Messemer, head of security at Nielsen, admit to “severe corruption” in TAM system.

    The past few days have seen a ping pong match of accusations and clarifications between WPP and NDTV, after WPP first issued a statement on 22 August saying it is considering filing a defamation suit against NDTV and would also be moving the court in New York for dismissal of the NDTV lawsuit arguing India was the right jurisdiction for hearing the NDTV case.

    After WPP disclosed contents of emails written by NDTV’s Vikram Chandra and Eric Salama, NDTV on Monday evening issued another statement demanding answers from Martin Sorrell.

    Reproduced below is the statement from NDTV:

    NDTV ASKS FOR ANSWERS

    The past few days have been a master class in how to obfuscate the real issues behind the TAM ratings row.

    Sir Martin‘s large team has avoided answering the key questions we had asked. We‘d like to ask again if Sir Martin is aware of some of these facts. Here are just 6 of the real key questions:

    1. Is it true that on the 11th of April 2012, the head of security for Nielsen, Robert Messemer admitted to severe corruption in the TAM system? And that the head of research, Paul Donato admitted to other severe errors in TAM data and systems?

    2. Is it true that Nielsen and Kantar launched their own investigation in January this year, following which they witnessed and verified details about corruption in the system, including audio and video recordings, and statements from a whistleblower?

    3. Is it true that the CEO of Kantar, Eric Salama apologised to NDTV at the meeting on April 11, after hearing Mr. Messemer, and promised immediate action?

    4. Is it true that Sir Martin Sorrell was personally informed about the problems in August 2011, in the presence of several witnesses? What were the specific steps that were taken after this?

    5. Is it true that the flawed TAM data continues to be published, despite an assurance that it would be stopped on the 31st July?

    6. Is it true that other broadcasters and NDTV have been pointing to flaws in the TAM system for years? And that the News Broadcasters Association of India has now asked for TAM ratings to be suspended till issues are resolved?

    While it is true that NDTV has suffered extensive damages, we have consistently been focused on helping Nielsen, Kantar and TAM to fix their own systems.

    The issues with TAM ratings were first raised by NDTV eight years ago, when it was a clear undisputed number one even according to TAM.

    For several months this year, NDTV worked closely with the highest levels of Nielsen and Kantar, as they investigated their own TAM ratings system in India. We didn‘t breathe a word about it to the press. There was no talk of “financial settlement”. What we asked was that the TAM system be cleaned up.

    We first made the threat of legal action on June 4, after it became clear that no meaningful action was being taken. Finally, we had no choice but to file the lawsuit because it was felt there was no other way to secure real change in the TAM system.

    In our statement two days back we said NDTV‘s lawyers have made no approach for settlement after the lawsuit was filed and communicated. This is perfectly true. The email from NDTV CEO Vikram Chandra, which WPP has selectively quoted from, was in fact the communication of the lawsuit to Nielsen and Kantar. It was a lengthy mail containing details of the suit, the cause for
    damages and the reason why it was filed in the USA. As is routine in such communications, it also contained an invitation to talk, together with the attached lawsuit. Just as we have been working for a long period together with Nielsen, Kantar and TAM to repair their system in India.

    NDTV has no desire to get into a prolonged trial by media with WPP.

    Our key intent in all these years has been to secure the cleaning up of the TAM ratings system. That desire is clearly shared by just about every stakeholder in the Indian broadcasting sector, and we are deeply grateful for the extensive support that this demand has received.

    We would now urge WPP to avoid a further obfuscation of the real issues and to turn its attention to the basic facts that are contained in our lawsuit. (End of NDTV Statement)

    The news broadcaster‘s intent has been to extract solutions that would clean up the TV ratings system in India. And in this overriding concern, NDTV feels it has extensive support of the broadcasting sector in India.

    Also Read:

    The fight gets vengeful; WPP discloses Vikram Chandra‘s email

    NDTV-WPP spat gets ugly; NDTV reveals Kantar CEO’s email sought end to litigation

  • NDTV-WPP spat gets ugly; NDTV reveals Kantar CEO’s email sought end to litigation

    MUMBAI: The NDTV-WPP spat took an ugly turn on Saturday. In an onslaught against WPP CEO Martin Sorrel’s tirade against NDTV for its lawsuit against TAM TV ratings, NDTV has disclosed that WPP-owned Kantar has, via an email on 8 August 2012, suggested the Indian news broadcaster bring an end to litigation.

    A fuming NDTV went on an offensive as Sorrel continued his tirade against the broadcaster saying WPP, its subsidiaries Kantar and TAM Media Research were being subjected to trial by the media at the behest of NDTV.

    WPP is a global communications agency and owns half of TAM Media Research in India through its subsidiaries, with the other half owned by The Nielsen Company. NDTV filed a lawsuit in the US on 31 July 2012 accusing Nielsen, Kantar, TAM and WPP of knowingly allowing manipulation of TV viewership ratings in favour of channels that are willing to provide bribes to its officials.

    NDTV has sought $810 million as compensation for the loss in revenues it has suffered over the years and $580 million in penalty for negligence by Nielsen and Kantar officials.

    NDTV, in a statement on Saturday, said it did not wish to make public the receipt of mail from Kantar CEO Eric Salama. The broadcaster said it was forced to do so after Sorrel was reported in a newspaper as saying that NDTV has asked for a settlement of the dispute.

    NDTV said the biggest accusation against Sir Martin‘s TAM rating system in India has come from Nielsen‘s own global head of security, Robert Messemer, not just from Indian broadcasters and NDTV.

    “Messemer, formerly of the FBI, in a meeting in Delhi on 11th April, in front of two dozen people (including the CEO of Kantar), called Sir Martin‘s TAM India operations the most corrupt in the world – and that he has been to many, many countries to fight fires for Nielsen. Sir Martin needs to check his facts with Messemer or would he perhaps threaten to sue him for defamation?”

    The following is the full text of NDTV’s statement that seek to point out the errors that Sorrell has committed:

    Sir Martin Sorrell knows better than all of us that the first rule of any PR campaign is never to get your facts wrong. Hence we can only conclude that Sir Martin Sorrell has been misled by his team into making several incorrect statements. Let us list some of the errors.

    But first, we request Sir Martin not to take India lightly. We request him to clean up his ratings operation in our country and to refrain from using his global PR clout to perpetuate corruption in his India ratings operation; to respect our country and the serious issues raised in our very real lawsuit (Sir Martin referring to it as “hypothetical” was bizarre) and take real steps to correct them. We, like all other Indian broadcasters, are happy to work together with Sir Martin to establish an honest, reliable and credible institution to measure ratings in India. This has not happened, despite repeated requests by us and promises made by Kantar and Nielsen.

    The first error: Sir Martin has alleged that NDTV‘s lawyers reached out to his lawyers to ask for a settlement. This is completely untrue. There was no such approach after the Complaint was filed and communicated. In fact, it was his own CEO, Eric Salama, the CEO of Kantar, a WPP company, who sent a confidential mail to NDTV on the 8th of August, suggesting a meeting if NDTV would “halt litigation”. A further mail exchange followed. NDTV has respected Mr Salama‘s confidentiality by not making this public till now- but Sir Martin would do well to check with his own senior executives before making baseless charges.

    The second error: The biggest accusation against Sir Martin‘s TAM rating system in India has come from Nielsen‘s own global head of security, Mr. Robert Messemer, not just from Indian broadcasters and NDTV. Mr. Messemer, formerly of the FBI, in a meeting in Delhi on 11th April, in front of two dozen people (including the CEO of Kantar), called Sir Martin‘s TAM India operations the most corrupt in the world — and he has been to many, many countries to fight fires for Nielsen. Sir Martin needs to check his facts with Mr. Messemer or would he perhaps threaten to sue him for defamation?

    The third error: Sir Martin seems to have finally discovered that this is not a “hypothetical” lawsuit. It is available on the website of the Supreme Court of New York for his team to read if Sir Martin is busy. Strangely, Sir Martin contradicts himself by now applying to the New York court for dismissal of the real lawsuit, using a plea based on technicalities of jurisdiction. Sir Martin and his lawyers (presumably) are not refuting any facts; they are merely using legalistic technical grounds to challenge NDTV. Our request is for Sir Martin and his team to argue the substantive factual merits of the case, and demonstrate a desire to stop the bribery and corruption.

    As an aside, Sir Martin must know that his sudden outbursts have done even more to prove that jurisdiction is indeed in the US and not in India, as Sir Martin has openly acknowledged how deeply involved he and thus Nielsen ( his partner) are, in Indian TAM viewership ratings operations.

    The fourth error: No amount of maliciously false and defamatory statements will work against our lawyers. Sir Martin‘s 10 billion pound global operations – for which we normally have great admiration – may indeed be able to hire the biggest and most famous legal names, but Sir Martin should know that the truth wins in the end – not lawyers. We leave it to our lawyers to respond to the allegations made against them.

    We may not have a 10 billion pound empire backing us, but WPP should realize that a court case is fought on the merits. We urge them to read the 194 page lawsuit, which contains indisputable facts, and respond to it on the factual merits, not with personal attacks.

    The fifth error: Sir Martin keeps referring to NDTV‘s low market cap (vs. his 10 billion pound). Size matters? We would like to point out that it is indeed near impossible for an honest Indian media company to function in the dishonest environment his company has helped create in India. If Sir Martin had a similar corrupt system in the UK or US, he wouldn‘t be where he is at the moment. Yes, if NDTV‘s true ratings were reflected as 62% (see attached evidence for this) rather than TAM‘s corrupted 25%, the impact on NDTV‘s revenues and market cap would be hugely significant. Sir Martin, or rather his team, knows that too. The details can be found in our (non-hypothetical) lawsuit.

    The sixth error: Sir Martin said “We will do everything to improve the system but not with a gun to our head” In fact, Sir Martin Sorrell was personally informed about all the problems with TAM ratings at a meeting at The Oberoi Hotel in Gurgaon in August 2011, in the presence of a large number of media journalists and eminent people. That was a year ago, and there was no “gun to the head”. Why was nothing done?

    Finally, we would like to thank Sir Martin for respecting NDTV‘s editorial position. We are a fiercely independent Indian news operation and proud to be a leader in India. Sir Martin Sorrel has appeared on many occasions on our channels, which clearly shows a mutual respect (and perhaps an indicator that he actually recognises that NDTV is larger than his TAM ratings suggest).

    NDTV has provided enough fodder for WPP to react offensively. Watch this space for more in what promises to be another bout of war of words!

    Also Read: The fight gets vengeful; WPP discloses Vikram Chandra‘s email