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  • ‘For the Zee Network, regional channels will be strong pillars’ : Nitin Vaidya – Zee Entertainment Enterprises Ltd. director regional channels

    ‘For the Zee Network, regional channels will be strong pillars’ : Nitin Vaidya – Zee Entertainment Enterprises Ltd. director regional channels

    As localized channels are gaining momentum on television, the Zee Network has been quick to grab untapped genres in regional markets. Spearheading four regional channels from the Zee bouquet, including Zee Marathi, Zee Bangla, Zee Gujarati and now Zee Talkies, is Zee Entertainment Enterprises Ltd director regional channels Nitin Vaidya.

     

    In a free flowing conversation with Indiantelevision.com’s Renelle Snelleksz, the Zee veteran outlines the growth trajectory of each region and the targets set for “regional channels to become the pillars of the Zee Network.”

     

    Excerpts:

    Zee has strengthened its position in Maharashtra with three channels – general entertainment, news and now movies. How has this market evolved and what is the growth story for Zee?
    In 1999 when we entered Maharasthra, there was a widespread belief that though Marathi audiences were bilingual, the market was largely Hindi skewed. It was expected that few viewers would be attracted to a Marathi channel.

     

    Till 2003, it was a real struggle but we were determined to provide value for the investors, for advertisers and for consumers.

     

    In 2003, the share of the Marathi television market was 8.3 per cent. Currently, the share of the market stands at 16.8 per cent (Tam data; January till Week 35, C&S 4+). Though Maharastra was believed to be Hindi dominated, the share of Hindi general entertainment channels dropped from 34.9 per cent in 2003 to 24.4 in 2007.

     

    Over the last four years, Zee Marathi has driven viewers to the genre through a very aggressive programming and marketing push.

     

    Evidence of that is seen in the channel share of Zee Marathi. In 2003, it stood at 40 per cent while ETV Marathi was at 35 and DD Sahyadri at 25. Although there was a decline in 2005, Zee Marathi has regained its leadership position in 2007 with a channel share of 45 per cent while ETV Marathi is at 36 and DD Sahyadri at 11.

    Can you identify the factors that contributed to Zee Marathi’s growth?
    We achieved two things in this market. Firstly, we were able to divert viewers from Hindi entertainment channels. In doing this we also changed the existing perception of the Marathi market being Hindi skewed. Secondly, the television universe as a whole has also grown considerably.

     

    This picture tells a story of how audiences are embracing local channels which they first try and then stick to. This gave us encouragement to invest monies behind this proposition.

    What is the growth that the Bengali market has witnessed?
    Bengal is far ahead of Maharasthra in terms of what has been accomplished as it consistently stayed ahead of Hindi GECs. In 2003, the Bangla market occupied a share of 28.6 as opposed to Hindi GEC which was at 22.9. The average for this year is 33.6 per cent share and Hindi GEC is 20.

    What were the differentiators used to combat competition and pull audiences from Hindi channels to Zee Marathi and Zee Bangla?
    We did not follow the set formula that is commonly used on Hindi GECs and replicate it for our regional audiences. We decided to take a different route and deliberately resisted the ‘saas-bahu’ dramas. Instead, we chose to focus on the interpersonal relationships that reflect the ethos of that particular region.

     

    These family dramas along with our popular musical format Sa Re Ga Ma Pa have been the major drivers of audiences for both these channels.

     

    Besides, we have not compromised on the production values for these channels and have attempted to extensively involve our viewers in daily programming through a host of interactive shows.

     

    This strategy even attracted urban viewers from Mumbai and Kolkata, areas considered too cosmopolitan for a regional channel. Both channels have surpassed Star Plus in C&S 15+ female SEC-A,B&C and while in C&S 4+ market Zee Bangla is far ahead of Star in Bengal, Zee Marathi is just 20 GRPs away from Star Plus in Maharashtra.

    But the growth witnessed by Marathi and Bengali has not been seen with Zee Gujarati – Why so? What was the setbacks that the channel encountered in this market?
    With Zee Gujarati we did have a problem. This too is a market strongly dominated by Hindi. With only three players in the game ETV, Zee and DD, the market has seen marginal growth over the last couple of years.

     

    Zee Gujarati requires the push that was given to Marathi and Bengali and going forward this is our plan. We will pump in more investments into the Gujarati market as well as rope in good talent and push our content more aggressively. One can expect to see a turnaround of Zee Gujarati.
    ‘Zee Gujarati will see a turnaround in the next two years‘

    What is the time line that Zee has set for revamping Zee Gujarati?
    Within the next two years, Zee Gujarati will witness a complete turn around. In fact, the potential of this market is more than that of Marathi and Bangla due to the mere consumption of the State. Therefore, we are putting serious monies behind the channel.

    How much will you pumping into Zee Gujarati?
    I would not like on that at the moment.

    What is the current ad pie for each of the three markets and what growth is expected in these regions?
    The ad revenue of the Bangla language channels in the Bengali TV market is expected to touch Rs 280 crore (Rs 2.8 billion) in 2007 and grow to a category share of 35 per cent. Meanwhile, Marathi language channels will cross Rs 225 crores to occupy 25 per cent share of the Maharashtra TV market this year. However, the Gujarati market is presently a mere Rs 50 crores.

    The network recently made its foray into the Marathi movie segment with the launch of Zee Talkies in August, what has been the response thus far?
    Although, we were aware of the untapped Marathi movie genre, the response to Zee Talkies has been phenomenal as it touched 70 GRPs in its first week of launch. The was far beyond our expectations.

     

    This was supported by an extensive marketing push of Rs 80 million dedicated to the launch campaign. We consciously decided that for the first 20 days the channel will not have a single advertiser. We wanted them to first see the response before they put money on the table. The numbers speak for themselves!

    As part of the network’s attempt to boost Marathi cinema, you tied up with three production houses for a slate of 15 films across two years. When will these movies be released and what is the investment outlay for these films?
    The first film will be released by the end of this year in theatres, following which it will be telecast on Zee Talkies. Close to Rs 10 million will be spent on each film.

    Do you have plans to enter Bengali film production as well?
    We are currently in talks with a few production companies for Bengali movies. We plan to get into Bengali film production very soon.

    Which production companies are you in talks with and what is the budget allocation for Bengali films?
    We have not yet zeroed in on the production houses yet, so it would be premature to talk about it now. But we will definitely be spending more than Rs 10 million on each film.

    So, are you looking to launch a Bengali movie channel as well?
    (Laughs) No! Not at the moment.

    Going forward what are the growth opportunities that you foresee in the three regions?
    The addressable television environment will definitely provide a huge thrust in pushing these channels ahead. For the Zee Network, the regional channels will be strong pillars. This will help grow both subscription and ad revenues for the network.
  • Blackstone to invest $ 275 million in Ramoji

    Blackstone to invest $ 275 million in Ramoji

    MUMBAI: In the single-largest investment in Indian media, global private investment firm Blackstone Group has announced it will be pumping in $ 275 million (approximately Rs 12.38 billion) to acquire a stake in Ushodaya Enterprises Limited (UEL), the holding company that manages Ramoji Rao’s media assets.

    While yesterday’s announcement gave no details on the quantum of the stake that Blackstone would be taking in the south Indian media baron’s closely held company, media reports have put it at 26 per cent. This would put UEL’s enterprise valuation at $1.06 billion.

    In addition to the $ 275 million that UEL is raising from Blackstone, it is also taking $190 million of bank financing, bringing the total financing it expects to raise to $465 million. As part of the agreement, Blackstone will have representation on the Board of UEL.

    The transaction is subject to regulatory approval by Foreign Investment Promotion Board (FIPB) and the information and broadcasting ministry.

    UEL chairman Ramoji Rao stated, “We were impressed with Blackstone’s disciplined and highly rigorous investment process and the ability to combine this emphasis with a deep and genuine respect for the promoter’s interests and desire to add value. The company had access to several financing options, including an IPO; but we decided to go with Blackstone because we believe that at this stage of our growth we have an opportunity to create significant value by leveraging Blackstone’s outstanding experience and track record in the global media sector.”

    Akhil Gupta, chairman and managing director of Blackstone Advisors India Private Limited, stated, “We believe that the Indian media sector will be a key beneficiary of a secular trend in growth in personal consumption that is driving India’s economic expansion which in turn will spur advertising growth. Importantly, we believe that UEL is an ideal platform for Blackstone to play this highly attractive sector in India..”

    Kotak Investment Banking acted as the sole investment banking advisor to the transaction.

    UEL owns Eenadu, the third largest newspaper, and ETV, the fourth largest private television broadcasting network in the country. The parent company of UEL, Ramoji Group, owns the 1,600-acre Ramoji Film City, which is Asia’s largest studio, apart from diversified interests in hotels, foods and financial services.

    The Blackstone Group is a global private investment and advisory firm that has has raised a total of more than $75 billion for alternative asset investing since its formation of which over $30 billion has been for private equity investing

  • NGC, ETV announce content partnership

    NGC, ETV announce content partnership

    MUMBAI: The National Geographic Channel (NGC) and regional network ETV have announced a content partnership.

    NGC will provide content to ETV, which will air five days a week (Monday-Friday) in a half hour evening slot. From today 13 November viewers of ETV Telugu, ETV Oriya, ETV Kannada, ETV Bangla, ETV Gujarati, ETV Marathi, ETV UP, ETV MP, ETV Rajasthan and ETV Bihar will be able to catch NGC’s programmes in their native language. The regional language versions of the programs will be provided by NGC to ETV Network.

    The new partnership with ETV is a step further in NGC’s strategy to reach out to a wider audience across the country. The programmes being aired on ETV will cover a wide range of topics. The alliance will be kick started with NGC’s series Most Amazing Moments” that will premier across the ETV network from today. This partnership also underlines ETV’s mission to provide its viewers with quality international programming to enhance the viewer experience.

    NGC India VP marketing Rajesh Sheshadri, “National Geographic Channel is synonym for smart, innovative and interesting programmes that invite viewers to Think again. Reaching a wider audience to expose them to our superior content has been a goal we have been constantly working towards.

    “Partnership with a leading channel like ETV that reaches to millions of viewers through their bouquet of regional channels is an excellent opportunity to further our reach. I am confident that viewers in these states will appreciate our unique programmes and will look forward to their daily dose of the best of National Geographic Channel programmes in their native language.”

    ETV Network VP – operations Bapineedu said, “Quality entertainment in the language of our viewer’s choice is one of the key contributors to our success. Our programs depict the culture with which our viewers are able to connect and it is this spirit of empathy with individual cultures/languages that has helped us to reach to millions of viewers. Through this partnership with National Geographic Channel we endeavor to further enhance our viewer’s experience by exposing them to never before seen international programmes in their native language.”

  • Zee Telugu promotes Rasool Ali as business head

    Zee Telugu promotes Rasool Ali as business head

    MUMBAI: Zee South Initiative VP Analytics Rasool Ali has been promoted the business head of Zee Telugu. Ali will be taking three sixty degree control of the first vernacular TV channel of Zee Network in South India, which is fifteen months old.

    An MBA Gold Medallist from AMU and an IIFT post graduate, Ali has vast experience in retail and International marketing, He crossed over to media industry in 2002 as head of analytics at ETV and then moved over to Zee South Initiative, states an official release.

    Ali will report to Zee Network South Initiatives head R. Ajay Kumar.

  • Indian TV channels to show solidarity with Mumbai blast victims

    Indian TV channels to show solidarity with Mumbai blast victims

    MUMBAI: Over 30 Indian television channels will simulcast a two-minute film The Voices of India on 18 July at 6 pm and 9 pm. The aim is to show solidarity with the victims of the serial train blasts that hit Mumbai last week.

    It is for the first time that television channels like DD, Star, Zee, Sony, Times, ETV, MTV, TV 18 network, NDTV and Janmat will get together to air the film.

    The Voices of India encapsulates thoughts expressed by Prime Minister Manmohan Singh after visiting the bomb blast victims. Sachin Tendulkar, Aamir Khan, Shah Rukh Khan, Fardeen Khan, Anil Kapoor, Yash Chopra, Preity Zinta, Karan Johar and Nana Patekar also feature in the film.

    Designed as a Campaign for India, it is the citizens response to the terrorist attack on Mumbai.

  • Irdeto to help ETV make the transition to pay

    Irdeto to help ETV make the transition to pay

    SINGAPORE: Irdeto, which works in the area of providing content security for digital TV, IPTV and mobile networks, has announced that ETV has chosen its digital TV solution to help protect ETV and ETV2 as they get converted from free-to-air to pay TV services.

    ETV VP operations K. Bapineedu says, “ETV and ETV2 are known for providing the best of family entertainment and leading edge news, and thus, it was crucial that we protect this content with the most robust conditional access solution possible..

    “Irdeto’s reputation as the proven leader in the industry with an unparalleled record of three generations of uncompromised smart cards in the market was key in our decision to go with their content security solution.”

    Irdeto CEO Graham Kill said, “Leading broadcasters like ETV-Network realise that content security plays a key role in securing revenue. Irdeto offers a choice in proven content security solutions that support many different business models creating new business opportunities for content owners and network operators.”

    Irdeto’s India country manager Rahul Nehra says, “We are committed to curtailing piracy on local and national levels. In order for ETV-Network to achieve a successful conversion from free-to-air to pay TV services, a tried and tested content protection solution was crucial. We are pleased to be selected by ETV-Network to protect two of its key local-language channels.”

  • ETV launches IPTV pilot test in Thailand

    ETV launches IPTV pilot test in Thailand

    MUMBAI: ETV, a global Internet distribution network offering sports and entertainment content over the Internet, has commenced a pilot test of its IPTV service in Thailand

    Through its partnership with Media Partners International, ETV will be deploying the ETV On Demand test system to an initial test market of 1000, growing to 10,000 test users throughout Thailand. The test period will last for up to 90 days, and will aggregate both technical information and customer feedback on the delivery system, the content and ease of use of the system.

    It is expected that the ETV On Demand full service launch will begin by the end of the third quarter in Bangkok. At this point, MPI will market the system throughout Thailand, a country with a growing population of more than 65 million. MPI has projected users to grow by 50,000-100,000 monthly once it rolls out the ETV On Demand system.

    The full ETV On Demand system launch is expected to take place later this year, and through early 2007. Potential viewership in these markets approximates 600 million.

    ETV’s proven broadband delivery technology affords consumers their choice of entertainment and sports programming 24 hours a day over the Internet, with full-screen broadcast resolution on a guaranteed bandwidth backbone. The company’s complete end-to-end solution encompasses the latest Internet television technology, exclusive sports and entertainment content and worldwide broadband distribution.

    MPI is a vertically integrated media company operating in the filmed and recorded entertainment and sports events production, licensing, and distribution industries. MPI’s chairman Sitichai Nuanmanee said, “The Pilot Test with ETV positions our two companies to dominate the broadband viewership market throughout Southeast Asia and India.”

  • Entertainment networks off air as Bangalore mourns Rajkumar’s death

    Entertainment networks off air as Bangalore mourns Rajkumar’s death

    BANGALORE / MUMBAI: India’s I-T hub of Bangalore shut down today as increasingly violent mourners gathered from around the state for Karnataka cinema’s legendary icon Rajkumar’s funeral.

    As a mark of respect (and also fearing possible attacks) cable networks in the city switched off all their entertainment channels. Only news channels were beaming ahead of Rajkumar’s cremation this evening, which will be conducted with full state honours.

    “The Kannada Sanga has requested us to switch off all entertainment channels in Bangalore today, as a mark of respect to Dr Rajkumar,” said the head of an MSO, while speaking to indiantelevision.com.

    Only the news channels are being telecast. Local Kannada channels Udaya and ETV are running on the cable networks as they have taken serials off air and are only showing programmes related to Dr Rajkumar. The entire Star, Zee and Sony-Discovery’s One Alliance channels are off.

    “Cable operators in Bangalore decided to switch off all entertainment channels from midnight. We expect to put the channels on from tomorrow once Rajkumar’s body is cremated,” said Hathway Cable & Datacom head of digital in Bangalore Mathur Nath.

    Cable operators were also contacted by the Kannada activists yesterday. Popular Tamil channels including Sun TV and Jaya TV were pulled off air.

    The entertainment channel blackout seems restricted to Bangalore alone, since enquiries from Mysore reveal that entertainment channels are on there, as has also been confirmed by a Bangalore MSO who has a network in Mysore too, though shops and businesses have remained closed there too.

    As per reports, policemen have been a target of the public ire and TV news channels showed scenes of unruly mobs chasing and beating up policemen.

    Rajkumar, known to fans as “Aannavru” or elder brother, died yesterday aged 77, following a cardiac arrest. The thespian, winner of the Dadasaheb Phalke and Padma Bhushan awards along with a host of other citations, has encouraged the use of Kannada language in the state. His 45-year career in cinema included more than 200 Kannada-language films.