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Tag: EY

  • #Retrace2021: Content and advertisers return to TV, AdEx remains elusive

    #Retrace2021: Content and advertisers return to TV, AdEx remains elusive

    Mumbai: 2021 was the year of the paradox. The return of LIVE sports and original programming on TV continued to attract new and more advertisers to the medium ensuring a phenomenal growth in ad volumes over 2020 and 2019. While it seemed like the marketers catering to ‘revenge buying’ consumers were on a ‘revenge spending’ spree, the decline in ad rates that had set in as a result of the pandemic, failed to rationalise through the year except towards the end of the festive season.

    Effectively, this meant that despite the economic recovery, positive consumer sentiment, availability of fresh content, and willingness of advertisers to spend, the 2021 AdEx could not reach pre-Covid levels. The negative trend was witnessed across categories.

    Also read: New advertisers make up 19% share of TV ad volume in Nov : Barc India

    According to the third edition of Broadcast Audience Research Council (Barc) India’s yearbook titled ‘The Year After 2019’, TV viewership grew by nine per cent in India in 2020. Yet given the circumstances, advertisers reeling under economic losses used the medium either sparingly or judiciously, mainly to maintain brand recall in anticipation of the reopening. With re-runs of old shows dominating the scene, almost all of television was functioning on a second-tier channel level in the context of content as well as ad rates.

    Picking up from the previous festive, 2021 began on a positive note with some fresh programming and the IPL motivating advertisers to place bigger bets on the medium. The second wave in May-June, however, postponed this recovery to the second half. Even as the rush of new FTA channels launched in 2020-21 and regional ones were making a significant contribution to ad volumes, broadcasters were now equally focussed on achieving pre-Covid ad rates.

    In addition to leveraging their leading IPs to negotiate a ‘fair’ deal once again, channels sought to up the ante with new shows (fiction and non-fiction) and seasons, as well as with LIVE sports programming. According to media planners, AdEx recovery started from July, surpassing 2019 levels in September-October. Contingent upon the possibility and severity of the third wave, it is hoped that this momentum aided by government spending on election campaigns until March 2022, will very soon lead to a full-fledged recovery for the industry.

    Content makes a comeback

    The efficient content strategy of regional adaptations like Star Plus’ ‘Anupamaa’ and ‘Ghum Hai Kisikey Pyaar Meiin’, and reruns implemented by broadcasters to tide over the pandemic turned out to be a success. Buoyed by the TRPs of the reruns, many channels brought back their popular shows and stars with new seasons and narratives in 2021.

    While ‘Sasural Simar Ka’ and ‘Balika Vadhu’ returned on Colors, SET launched season two of its popular series ‘Kuch Rang Pyaar Ke Aise Bhi’ and ‘Bade Achhe Lagte Hain’. Star Plus came up with the new edition of ‘Sasural Genda Phool’. After premiering the second season of ‘Saath Nibhanaa Saathiya’ in October 2020, the channel also re-launched the much-loved mother and daughter-in-law duo of Giaa Manek and Rupal Patel in ‘Tera Mera Saath Rahe’ (August 2021). Star Bharat chipped in with ‘Mann Kee Awaaz Pratigya 2’ in March.

    Also read: Shark Tank to get an Indian adaptation, set to air on Sony TV

    Beginning the year with ‘Teri Meri Ikk Jindri’, Zee TV introduced six new fiction shows this year and a history-based series ‘Kashibai Bajirao Ballal’. On the non-fiction front, apart from bringing back ‘Sa Re Ga Ma Pa’, it launched the new music league championship ‘Indian Pro Music League’. ‘Dance Deewane’ on Colors TV, ‘Dance Plus’ on Star Plus, ‘Super Dancer’ on Sony TV further added to the non-fiction list. Bringing new formats to the reality TV genre were Colors’ visual-based quiz show ‘The Big Picture’ hosted by Ranveer Singh and SET’s business reality television series ‘Shark Tank’.

    Also read: Viacom18 eyes a bumper festive season, with new show ‘The Big Picture’ set for launch

    Return of LIVE sports

    The return of LIVE sports further bolstered the recovery, with a host of new advertiser categories banking on TV to build reach. Whether it was the cryptocurrency brands, gaming, ed-tech or D2C brands, Television saw the ad volume rise across channels. While the 14th edition of the Indian Premier League (IPL) was halted mid-way due to the second wave, it made a comeback in September, with the T20 cricket World Cup. It was followed by the India-New Zealand Test series.

    The year also saw other major sporting events, including the 2020 Tokyo Olympics which was held amid Covid restrictions, and set the stage for India’s spectacular performance across different sports. Not only did India win its first-ever Gold in Athletics (Neeraj Chopra), it witnessed brilliant performances in Hockey, Boxing, as well as weightlifting. Over 48 million viewers watched EURO 2020 on its official broadcaster Sony Pictures Sports Network (SPSN), as per the data shared by the network for its entire coverage of the first 36 matches of the tournament from 11 to 25 June.

    Also read: Over 48 million viewers tuned into SPSN to watch UEFA EURO 2020

    Also read: Star Sports Network logs 3.8 million AMA for 1st India vs England Test

    Then, there was the India-England Test cricket series, ICC World Test Championship Finals in June, India-Sri Lanka series, India-Australia women’s cricket series. The year ended with the return of the Pro-Kabaddi League (PKL) in Bengaluru. 

    Phenomenal recovery in ad volumes

    An analysis of Barc’s monthly data reveals that TV showed a strong recovery in ad volumes since the beginning of 2021, and a noticeable growth over 2020 and 2019 levels. In 2020, TV ad volumes contracted by three per cent over 2019. However, in 2021, ad volumes grew over the last two years for most of the months except March (data not shared), May which saw a marginal de-growth of 3.5 per cent, and December (data unavailable).

    Also read: October records highest TV ad-volume in 2021

    According to media planners, the growth in ad volumes was supported by the launch of new channels in 2020 and 2021 which led to an increase in inventory on TV. Several new channels were launched to cater to the free-to-air audience including Ishara TV (FTA), Dhinchaak TV (FTA), Enterr10 Rangeela (FTA), Sun Marathi (FTA), Zee Pichar (Pay), Zee Thirai (Pay), Shemaroo TV (FTA), DD Retro (FTA), Dum TV Kannada (FTA), Azaad TV (FTA), Colors Cineplex Bollywood (FTA), Dhinchaak 2 (FTA), Republic Bangla, Times Now Navbharat HD (Pay), ET Now Swadesh and Gubbare TV.

    Regional channels also scripted their growth story in 2021, with several Southern languages, Marathi, Punjabi, Gujarati, and Bhojpuri recording a consistent growth in ad volume, not only over 2020 but also 2019 levels. In Q3’21 (July-August-September) almost all language channels saw growth over Q3’19. 

    Also read: Regional TV channels ride the growth wave, show surge in ad volume

    Also read: Television welcomes over 850 new advertisers in July 2021: BARC India

    While the launch of new channels increased the advertising inventory on TV, their contribution to the overall spend is not significant, according to media planners.

    Another reason for growth in ad volumes on TV is the emergence new advertisers in the second half of 2021. As per Barc data, in H1’21 FMCG advertisers dominated on TV accounting for 65 per cent share of the total ad volumes (springing back to action, were also hit by the pandemic, ad spends not as before). But starting from July new categories (compared to H1’21) started advertising on TV. The data for Q3’21 shows that new advertisers comprised 54 per cent of TV ad volumes compared to 41 per cent in 2020 and 45 per cent in 2019. (Note – new advertisers: not present in previous quarter). Similarly, new advertisers had 22 per cent (not present in Jan-Sept) and 19 per cent (not present in Jan-Oct) share of total TV ad volumes in October and November, respectively. 

    Also read: #Retrace2021: The emergence of new advertiser categories in sports genre

    The AdEx paradox

    A like-for-like comparison of top channels on TV show the AdEx trend for 2021 compared to the last two years. The graph below shows that TV ad spends began recovering in July and only increased over 2020 and 2019 levels beginning in August.

    Why compare only the top channels? “The 80/20 principle applies to TV where the top 20 per cent channels get 80 per cent of the ad spends,” explained a media planner. “It was only in the second half of the year that we saw AdEx recovery starting from July, with spends matching 2019 levels during the months of September-October. Otherwise, most of the year was lagging in terms of spends compared to 2019, except in April during IPL, just before the second wave of Covid-19 struck.”

    Also read: Global cost of TV advertising up by 5%: Zenith

    According to E&Y estimates, TV advertising revenues declined by 21.5 per cent in 2020 from Rs 320 billion to Rs 251 billion. The Madison Advertising report estimates that TV AdEx was down by 11 per cent. (Note: TV advertising revenues is different from TV AdEx; TV AdEx may look only at top channels to exclusion of others)

    “The festive period this year has given the much-needed boost to businesses across sectors, including the television industry,” remarked Carat India vice president – digital media planning Megha Ahuja. “The strong growth was driven by two sporting events (IPL and ICC T20 World Cup), GECs and news.” Ahuja expects this growth in AdEx to continue for the next couple of months. “We have elections next year. The government has already started spending on ads, and will continue to do so till March 2022,” she reckoned.

    According to OMD Mudramax senior partner–client lead Sri Harsha, TV adex is expected to make a complete recovery by the end of 2021 and show slight growth over 2019 Adex levels, despite, most of the advertisers losing first-quarter advertising due to Covid second wave.

    “Advertisers still acknowledge the fact that TV is the go-to medium for mass reach. Gone are the days when FMCG, Telecom, Auto, BFSI & Consumer durables contributed the lion’s share to the overall TV Adex. This scenario has changed with the advent of new categories like E-commerce, Fintech, Online education leveraging hugely on TV leading to the growth of Adex. A lot of advertisers are still in the anticipation of current news channels ratings which are not available for over a year now. This will help advertisers apportion definite budgets to news leading to the future growth of TV AdEx,” said Harsha, adding that the average time spent by the consumers watching TV hasn’t dropped either- maintaining 3.5 -4 hrs a day as per BARC – reinstating confidence among the advertisers.”

  • Ants Digital appoints Sai Krishna as South branch head

    Ants Digital appoints Sai Krishna as South branch head

    Mumbai: Ants Digital, a Gurugram-based tech-led marketing agency, has appointed Sai Krishna as branch head for the southern region. Krishna will be based out of Hyderabad and overlook the operations for all the key markets in the South, said the agency.

    Krishna comes with over 15 years of experience in the field of marketing, creative and advertising and has worked extensively across the corporate, social, and government sectors. He joins Ants after working at E&Y where he was responsible for strategic business consulting. In the past, he was associated with Ogilvy, where he worked on crafting key communication for the state of Andhra Pradesh through creative, digital, and electronic media.

    Commenting on the new appointment, Ants Digital CEO Sanjay Arora said, “Ants has been consistently moving forward and with his appointment, the company will reinforce its operations in the southern region. Sai brings a good understanding of the South market and has vast experience in digital, creative strategy, and planning, which will add immense value to our clients and the team while exceeding service levels and client delivery. The South region has great potential and our current client base has given us a lot of confidence to invest more in this market. For Ants, both North and West markets have been performing very well and now South is emerging as a potential market to grow.”

    A post-graduate from Sri Sathya Sai Institute of Higher Learning, Krishna has also worked for the Government of Andhra Pradesh scaling up the communication initiatives to give a fillip to the medical technology sector in the state.

    Speaking on his new role, Krishna said, “Ants has been scaling its business in the South market and I am really excited to build and grow this further. South has some very interesting brands and corporate houses. The digital prowess and unique mix of service offerings of Ants will bring value to clients here.”

  • Non-metro markets to propel India’s recovery: EY

    Non-metro markets to propel India’s recovery: EY

    NEW DELHI: In the face of unprecedented economic disruption caused by the COVID2019 pandemic, non-metro markets are likely to recover faster than metro markets, an EY survey found. 

    The EY report ‘Will non-metro markets propel India's recovery’, revealed a higher percentage of respondents from non-metro markets expect to spend more than before on several categories compared to metro markets indicating that when the lockdown ends, green shoots of recovery would probably sprout faster from the non-metro markets.

    The survey covered a varied demographic mix of more than 4,000 respondents (2,000 each from metro and non-metro markets) to understand the potential impact of the pandemic from the consumer sentiment perspective. It covered key aspects linked to the current and expected attitudes, behaviors and spending trends of consumers as they adapt to the new reality. 

    EY India partner and media & entertainment leader Ashish Pherwani said, “The COVID2019 pandemic has radically shifted our way of life. However, despite uncertain and challenging conditions, our research shows that non-metros express a higher degree of resiliency and a resolve to bounce back quicker compared to metros. We may see long-term and even permanent changes in consumption patterns”. 

    The survey results reveal that the pandemic and the ensuing social distancing measures put in place have led to fundamental changes in how Indians are consuming media, necessities, luxury products education and travel. 

    Some of the key insights from the survey are:

    Health, hygiene and online services will continue to grow

    While COVID2019 has impacted overall consumption, categories like heath products, household products, hygiene products, vitamins and supplements and online services (gaming, home entertainment, online education, online banking) are expected to benefit.

    Non-metro market recovery is excepted to be faster than metro recovery

    Categories like consumer goods, travel, entertainment, automobiles and white goods are all expected to see increased and faster recovery of demand from non-metro markets post the lockdowns. 

    Increase in digital adoption

    Digital trials increased significantly during the lockdown period.  However adoption was higher for metros vis-à-vis non-metros.  Some of the obstacles stated by non-metro respondents included lack of technological knowledge, absence of smart phones and fewer language interfaces.

    Newspapers remain the most trusted medium

    The impact of the SarsCoV2 has unfolded at a dynamic rate, causing a sense of urgency to absorb information, increasing the consumption of news coverage at unprecedented levels. Newspapers continue to remain the most trusted news source. 42 per cent respondents in non-metro markets spend more than 20 mins in reading a newspaper compared to 36 per cent in metros.

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  • M&E industry grew by almost 9% to reach Rs 1.82 tn in 2019: FICCI – EY report

    M&E industry grew by almost 9% to reach Rs 1.82 tn in 2019: FICCI – EY report

    MUMBAI: The Indian Media and Entertainment (M&E) sector reached RS 1.82 trillion (US$25.7 billion) in 2019, a growth of 9 per cent over 2018 states the FICCI EY report ‘The era of consumer A.R.T. – Acquisition Retention and Transaction,’ launched today. With its current trajectory, the M&E sector in India is expected to cross INR2.4 trillion (US$34 billion) by 2022, at a CAGR of 10 per cent*.

    While television and print retained their positions as the two largest segments, digital media overtook filmed entertainment in 2019 to become the third largest segment of the M&E sector. Digital subscription revenues more than doubled from 2018 levels and digital advertising revenues grew to command 24 per cent of total advertising spend.

    The sector continues to grow at a rate faster than the GDP, driven primarily by growth in subscription-based business models and India’s attractiveness as a content production and post production destination.

    The rapid proliferation of mobile access is enabling on-demand, anytime-anywhere content consumption nationwide. With a population of 1.3 billion, a tele-density approaching 89% of households, 688 million internet subscribers and nearly 400 million smartphone users, India’s telecom industry is poised to become the primary platform for content distribution and consumption. India ranks as one of the fastest-growing app markets globally, where entertainment apps are driving significant consumer engagement.

    Online gaming retained its position as the fastest growing segment on the back of transaction-based games mainly fantasy sports, increased in-app purchases and a 31 per cent growth in the number of online gamers to reach around 365 million.

    Uday Shankar, Senior Vice President FICCI, said, “Riding the wave of exponential progress made towards digital accessibility and adoption, the M&E industry has been a forerunner of a dynamic and aspirational India. New products and business models are being imagined to capitalize on the rise in media consumption. Global players are recognizing the need to build India-centric offerings. The coming years are likely to usher in greater innovation in content formats, means of dissemination, and business models.”

    Ashish Pherwani, Partner and Media & Entertainment Leader, EY India, stated, “The M&E sector witnessed a surge in content consumption as digital infrastructure, quantum of content produced and per-capita income increased in 2019.  Driven by the ability to create direct-to-customer relationships, the sector firmly pivoted towards a B2C operating model, changing the way it measured itself. As entertainment and information options grew and choice increased the era of consumer Acquisition, Retention and Transaction (ART) redefined the media value chain leading to the emergence of many new trends and strategies across content, distribution, consumption and monetization.”

    “The coronavirus outbreak will have a significant adverse impact on the sector, the situation is still evolving both in India and many parts of the world, the scale of the impact cannot be estimated immediately,” he added.

    Key findings

    Television:

    The TV industry grew from Rs 740 billion to INR 788 billion in 2019, a growth of 6.5 per cent. TV advertising grew 5 per cent to Rs 320 billion while subscription grew 7 per cent to Rs 468 billion. Regional channels benefited from the New Tariff Order as their consumption increased by over 20% in certain cases. General entertainment and movie channels led with 74 per cent of viewership. On the back of several key announcements by the central and state governments such as Article 370, the Citizenship Amendment Act, and a general election, the news genre witnessed a growth to almost 9 per cent of total viewership, up from 7.3 per cent in 2018. In sports cricket emerged as the big winner in 2019 as it accounted for over 80 per cent of the sports viewership, up from 70 per cent last year, due to the ICC World Cup.

    Key insights – Television will remain the largest earner of advertising revenues even in 2025, approaching Rs570 billion. Viewership of regional language channels will continue to grow and reach 55 per cent of total viewership in India as their content quality improves further. Content viewed on smart TV sets will begin to reflect that consumed on mobile phones, providing a window for user generated content companies and other non-broadcasters to serve content on the connected television screen.

    Print:

    Despite a 3 per cent revenue degrowth at Rs 296 billion, print continued to retain the second largest share of the Indian M&E sector. Circulation revenues increased by 2 per cent to Rs 90 billion as newspaper companies tactically increased prices in certain markets. Advertising revenues fell 5 per cent to INR 206 billion in 2019 as AdEX volumes fell by 8 per cent. Margins improved as newsprint cost measures were implemented and companies benefited from the reduction of newsprint prices.

    Key insights – 2019 witnessed a significant growth in digital news consumers over 2018 when 300 million Indians consumed news online. Most large print companies had a defined digital business, with two companies crossing Rs 1 billion in digital revenues. Digital subscription, though nascent, has increased as several publications have put digital products behind a paywall.

    ·Digital media:

    In 2019, digital media grew 31 per cent to reach INR 221 billion and is expected to grow at 23 per cent CAGR to reach Rs 414 billion by 2022. Digital advertising grew 24 per cent to Rs 192 billion driven by increased consumption of content on digital platforms and marketeers’ preference to measure performance. SME and long tail advertisers increased their spends on digital media as well.  Pay digital subscribers crossed 10 million for the first time as sports and other premium content were put behind a paywall.  Consequently, subscription revenue grew 106 per cent to Rs 29 billion. Digital consumption grew across platforms where video viewers increased by 16 pe cent, audio streamers by 33% and news consumers by 22 per cent.

    Key insights: By 2020, OTT subscription market will approximate 10 per cent of the total TV subscription market (without, however, considering data charges).  We estimate over 40 million connected TVs by 2025, which will provide a huge opportunity for content creators to reach family consumers.  Better bandwidth will drive large screen consumption. By 2025, 750 million smart phone screens will also increase the demand for regional, UGC and short content, creating a short video ecosystem that can create significant employment.  The battle for content discovery will intensity and move to the unified interface.

    ·Films:

    The Indian film segment grew 10 per cent in 2019 to reach INR 191 billion driven by the growth in domestic theatrical revenues and both rates and volume of digital/ OTT rights sold. Domestic film revenues crossed INR 115 billion with Gross Box Office collections for Hindi films at Rs 49.5 billion – the highest ever for Hindi theatricals. Overseas theatricals revenues fell 10 per cenr to Rs 27 billion despite more films being released abroad primarily as films with superstars didn’t perform as well in 2019. 108 Hollywood films were released in 2019 as compared to 98 in 2018. The gross box office collections of Hollywood films in India (inclusive of all their Indian language dubbed versions) grew 33 per cent to reach Rs 16 billion. As single screens continued to reduce, the total screen count decreased by 74 to 9,527.

    Key Insights: Digital rights continued to grow in 2019 with an increase in revenues from Rs 13.5 billion in 2018 to Rs 19 billion in 2019. Digital release windows shortened with some movies releasing on OTT platforms even before their release on television. In-cinema advertising grew marginally to Rs 7.7 billion in 2019 as multiplexes and advertising aggregators started signing long-term deals with brands. Seventeen hindi films entered the coveted Rs 100 crore club in 2019, which is the highest ever. Interestingly, six movies made it to the rs 200 crore club in 2019, as opposed to three in 2018. The future will be driven by immersive content (technology and VFX rich) experiences to drive theatrical footfalls and some genres of films could migrate to home viewership only.  We can expect to see creation of a segmented Hindi-mass product for the heartland at low ticket prices.

    Mergers and Acquisitions in M&E

    While the number of deals increased to 64 in 2019 from 41 in 2018, the overall deal value was

     much lower at Rs 101 billion as compared to Rs 192 billion in the previous year. This was largely due to the absence of big-ticket deals with only four deals crossing the US$100 million threshold. The highest amount of investment was made in television, followed by digital, radio and gaming. Deal activity was spearheaded by new media such as digital and gaming, which witnessed 54 of the 64 deals in 2019, however, in terms of deal value, the share of traditional media segments such as TV, radio and film exhibition was 63 per cent.

  • FreeDish a key driver in FTA channels’ growth by ’20

    BENGALURU: Telecom Regulatory Authority of India (TRAI) numbers for the six private players in the DTH industry show a very poor growth rate of just 0.96 million and 5.8 million during the quarter and year ended 31 March 2017 (Q4-17, FY-17) respectively. This figure is far lower – less than one-third of the 17.38 million active DTH subscribers added in FY-16. According to an E&Y report titled ‘India’s Free TV’ released in July 2017, among the DTH operators in the country, DD FreeDish has grown to become the largest with estimated 22 million subscribers. This would make it the single largest distribution platform in India today. While there is no concrete data around it, because any customer can buy from a variety of hardware options and commence downlinking the FreeDish feed, DD FreeDish subscribers are expected to cross 40 million in the next 2 to 3 years.

    The report says that this growth in subscriber base has caught the attention of both broadcasters and advertisers today. All large broadcasters, including Star, Zee, Sony and Viacom, have launched their FreeDish-based channels. The content on these channels is similar to that on the broadcasters’ general entertainment pay channels but is dated by up to a year or even less. Success of channels such as Zee Anmol (with ad revenue of approximately Rs 800 million) and Sony Pal (with ad revenue of approximately Rs 1,100 million) has led to even further channel launches by broadcasters, which have now launched FTA film channels on FreeDish as well.

    Hindi news television, a segment always skewed toward FTA channels, has taken to DD FreeDish in a big way in order to protect its ad revenues and save on the carriage fees charged by distribution companies. Almost all large Hindi news channels are now on the DD FreeDish platform says the report.

    The report says that several factors are working together in the current environment in 2017, which E&Y believes will lead to a significant growth in free TV viewership over the coming years. These factors include:

    1.    Digitisation of cable TV distribution – DAS IV Given the regulatory push toward digitization, the government of India has mandated the total shutdown of analogue cable transmissions from April 2017. In effect, this will require consumers, particularly those in DAS III and IV markets, to make a choice – opt for more expensive cable TV options, DTH or free TV options such as terrestrial TV or FreeDish. Given that they would have to invest in hardware (a STB and perhaps also a dish), the more price-conscious customers may opt for free television services in the immediate term.

    public://chart1.jpg

    2.    The proposed new tariff order -With the base price set by the new tariff order at a maximum of Rs130 plus tax for carriage of 100 channels, customers paying Rs150 per month or below will now end up losing access to all pay channels they were receiving. In such an event, they would have the option to either pay more to receive pay channels of their choice or decide that free television would be a better option, given the quantum of quality content on it. Broadcasters’ FTA channel strategy may impact their subscription revenues in the event the move toward free television becomes significant.

    public://chart2_0.jpg

    3.    The fast growth of DD FreeDish – FreeDish currently provides over 80 channels and is moving toward 250 channels, many of whom have the same or similar content than pay channels. In addition, recent regulations classifying even more sports events as those of national importance (hence requiring them to be shared with DD) make the FreeDish bouquet formidable competition to pay bouquets.

    public://chart3.jpg

    4.    DTT on mobile infrastructure- One interesting development relating to mobile television is the advent of digital terrestrial distribution. Since this is a broadcast technology, the key implication will be that consumers whose mobile handsets have the required antenna would not be required to pay any bandwidth charges. Consequently, once the mobile handset ecosystem matures, DTT could also provide a strong addition to free television services.

    public://CHART4.jpg

  • Guest Column: Measure by Measure

    Guest Column: Measure by Measure

    Year ends are always a good a time to reflect on the past, take stock of the present and plan for the future. So let me begin, by reflecting on the year that was.  

    In 2016, the state of audience measurement in India grew by leaps and bounds. From just 10,000 homes in the previous system, we are already at 22,000 homes, with the course set for 55,000 as mandated. Over the year, the broadcast industry got a better idea of ‘What India Really Watches’, thanks to the addition of rural viewership measurement which BARC introduced– a fact that has been applauded by all. In fact, BARC’s investment in technology has ensured greater robustness in the system, with more automation and less manual interventions. Our system is also very scalable as our Bar-o-meter costs less than US$400 compared to the previously used meters which cost US$2500!

    The watermarking technology adopted by BARC, is two generations ahead of the rest. It not only captures catch up TV but also simulcast. What this means is that BARC can monitor any recording of a programme, seen within seven days of its telecast, and can also accurately measure a simultaneous telecast of a cricket match across say 20 channels, including Doordarshan, and can report which channel is drawing the highest eyeballs. In fact, the watermarking technology is also future-ready which can be used for digital measurement, which BARC currently is evaluating.

    Taking stock of the present, we at BARC are immensely proud of the credibility we have established and the trust that we have earned from the industry. This has come about as a result of support of our stakeholders and our commitment to transparency. Incidentally, the need for transparency was also the one big reason industry came together and formed BARC. It propelled the need for the formation of a joint industry body, where all stakeholders’ representatives are part of the board and the technical committee. A unique aspect of that is BARCs governance structure which ensures that decisions must necessarily be agreed to jointly. To further strengthen transparency and credibility, BARC has partnered with Ernst & Young (E&Y) so that data can be audited by an external independent auditor. Evidence enough to the seriousness of thought that was given to credible data by the three industry bodies which make up BARC.

    Having established credibility in our data and systems, our task for the year ahead on that front is cut out: we will leave no stone unturned in our endeavour to maintain integrity, and take every step possible to ensure a robust and reliable viewership measurement environment: which is essential for the broadcast industry to thrive and grow. The support of our Board validates the faith we have in our systems and processes, and we will continue to build on that. We have set up a vigilance team that works with specialist agencies on the ground to track mala-fide activities. Any attempt to unfairly influence our measurement system has been dealt with firmly and we will continue to maintain zero-tolerance towards any acts of infiltration or tampering of our panel homes.

    The TV Industry draws in multiple crores of rupees worth of advertising in a country with over 153.5 million TV homes, where watching TV firmly remains a family routine. Be it entertainment or news, sports or movies, music, kids shows or a national events like Independence and Republic Days, TV will continue to take centre stage in the lives of Indians. And monitoring who is watching what will continue to remain a critical need for the growing stakeholders.

    While welcoming 2017, we at BARC, promise to continue our commitment to a transparent and credible viewership measurement system, because that’s the only way we know to measure things.

    public://Parth.jpg The author of this article is Broadcast Audience Research Council India CEO. You can follow him on Twitter @parthodasgupta. The views expressed are personal and Indiantelevision.com need not necessarily subscribe to them

     

  • Guest Column: Measure by Measure

    Guest Column: Measure by Measure

    Year ends are always a good a time to reflect on the past, take stock of the present and plan for the future. So let me begin, by reflecting on the year that was.  

    In 2016, the state of audience measurement in India grew by leaps and bounds. From just 10,000 homes in the previous system, we are already at 22,000 homes, with the course set for 55,000 as mandated. Over the year, the broadcast industry got a better idea of ‘What India Really Watches’, thanks to the addition of rural viewership measurement which BARC introduced– a fact that has been applauded by all. In fact, BARC’s investment in technology has ensured greater robustness in the system, with more automation and less manual interventions. Our system is also very scalable as our Bar-o-meter costs less than US$400 compared to the previously used meters which cost US$2500!

    The watermarking technology adopted by BARC, is two generations ahead of the rest. It not only captures catch up TV but also simulcast. What this means is that BARC can monitor any recording of a programme, seen within seven days of its telecast, and can also accurately measure a simultaneous telecast of a cricket match across say 20 channels, including Doordarshan, and can report which channel is drawing the highest eyeballs. In fact, the watermarking technology is also future-ready which can be used for digital measurement, which BARC currently is evaluating.

    Taking stock of the present, we at BARC are immensely proud of the credibility we have established and the trust that we have earned from the industry. This has come about as a result of support of our stakeholders and our commitment to transparency. Incidentally, the need for transparency was also the one big reason industry came together and formed BARC. It propelled the need for the formation of a joint industry body, where all stakeholders’ representatives are part of the board and the technical committee. A unique aspect of that is BARCs governance structure which ensures that decisions must necessarily be agreed to jointly. To further strengthen transparency and credibility, BARC has partnered with Ernst & Young (E&Y) so that data can be audited by an external independent auditor. Evidence enough to the seriousness of thought that was given to credible data by the three industry bodies which make up BARC.

    Having established credibility in our data and systems, our task for the year ahead on that front is cut out: we will leave no stone unturned in our endeavour to maintain integrity, and take every step possible to ensure a robust and reliable viewership measurement environment: which is essential for the broadcast industry to thrive and grow. The support of our Board validates the faith we have in our systems and processes, and we will continue to build on that. We have set up a vigilance team that works with specialist agencies on the ground to track mala-fide activities. Any attempt to unfairly influence our measurement system has been dealt with firmly and we will continue to maintain zero-tolerance towards any acts of infiltration or tampering of our panel homes.

    The TV Industry draws in multiple crores of rupees worth of advertising in a country with over 153.5 million TV homes, where watching TV firmly remains a family routine. Be it entertainment or news, sports or movies, music, kids shows or a national events like Independence and Republic Days, TV will continue to take centre stage in the lives of Indians. And monitoring who is watching what will continue to remain a critical need for the growing stakeholders.

    While welcoming 2017, we at BARC, promise to continue our commitment to a transparent and credible viewership measurement system, because that’s the only way we know to measure things.

    public://Parth.jpg The author of this article is Broadcast Audience Research Council India CEO. You can follow him on Twitter @parthodasgupta. The views expressed are personal and Indiantelevision.com need not necessarily subscribe to them

     

  • Union Budget 2016: What it means for the media & entertainment industry

    Union Budget 2016: What it means for the media & entertainment industry

    MUMBAI: 29 February marked an important date in the year’s calendar as Indian Finance Minister Arun Jaitley presented the Union Budget 2016, amidst expectations from all sections. With an aim to give equal attention to all sectors that need financial assistance, Jaitley presented the nine pillars of his budget that focused on multiple subjects; from eCommerce to start-ups; from education to increasing jobs; and from agriculture to health.

    In a quest to find out what it really means for the media and entertainment industry, Indiantelevision.com reached out to several industry stalwarts to find out how they interpret the Union Budget 2016.

    Here’s what they have to say:

     M&E Tax Advisory India, EY, partner and head Rakesh Jariwala

    “As part of the budget proposals, India has levied an equalisation levy – what is known as ‘google tax’ globally. The tax @ six per cent of the consideration will apply on services relating to online advertisement, provisions on online ad space or other facility or services for the purpose of online advertisement, when such services are provided by a non-resident to either an Indian resident or a non-resident having a permanent establishment in India. The payer for these services are required to deduct 6% prior to making the payment. This is the first time that online services are being taxed in India.”

     Videocon director Anirudh Dhoot

    “The Finance Minister presented a balanced budget with a focus on infrastructure and agriculture sectors. By keeping the fiscal deficit target to 3.5 per cent of the GDP, the budget addresses long term positive impact on businesses. For consumer durable and home appliances industry specifically, the budget brings mixed responses. While the focus is more on dispute resolution and simplification of provision, the voluntary income disclosure will dampen the market. The government has lowered the corporate tax for new manufacturing units at 25 per cent with a view to promote industrial activity and generate jobs. With regard to small units having a turnover of Rs 5 crore, the corporate tax rate has been reduced from 30 per cent to 29 per cent. However, there is no relief on the corporate tax for big manufacturers. Government has stressed on GST implementation and proposed changes in customs duty to push make in India initiatives, which is aimed at improving the overall business environment.” 

     Sony Pictures Networks India CEO NP Singh

    “From an overall budget perspective, the enhanced public spending through various social schemes and infrastructure investments should further help to expedite economic growth. The government has also balanced spending with fiscal prudence by reigning-in fiscal deficit. From a media industry perspective, there were no major changes. I feel that a change in the definition of industrial undertaking for the services industry as well as a push to define the GST roadmap would have been sector-positive. There is a landmark attempt in the budget to simplify the tax administration, which should herald a friendlier tax regime.”

     Dentsu Aegis Network South Asia CEO and chairman and Posterscope & MKTG – Asia Pacific chairman Ashish Bhasin 

    “Overall there are some positives and some negatives in the budget. Not increasing the service tax is a positive, particularly for the advertising and media sector. The general expectation was that Service Tax may go up in anticipation of higher GST rates. Controlling the fiscal deficit and several steps to invigorate the rural economy and rural consumption are positive signals. A rural consumption revival will help the economy and the advertising and media sector tremendously. On the negative side, there was an expectation based on what the Finance Minister said in the past, that corporate tax rates would come down. That is not to be so for most large companies. Introducing double taxation on dividends is also a negative. In balance this seems to be a mixed bag budget with a positive bias. If it is able to spur overall economic growth, we could see good times ahead for the advertising and media sector.”

     Times Network CEO and MD MK Anand

    “Digitisation, in my opinion is the most important factor for the broadcast sector currently, we are very happy about the excise duty changes proposed for set-top-boxes, which will help in the last mile infrastructure of Digital Addressable System (DAS) Phase 3 and 4. Overall, a stable and positive fiscal situation is good for the economy and that will support our ad sales growth projections. All in all budget 2016 looks good for the Broadcast sector.”

     Viacom18 Group CEO and National Media and Entertainment Committee CII chairman Sudhanshu Vats

    “Kudos to the government for presenting a disciplined and inclusive budget. The emphasis on rural development and commitment to the fiscal deficit target augur well for the economy in the long-run. The proposal for a more conducive excise duty regime for STBs and other ‘entertainment-access devices’ is welcome. While many of us from the industry were anticipating more sector-specific announcements, I’m sure that this budget will benefit the larger economy and therefore, by extension, have a positive impact on our industry as well.”