Tag: film distributors

  • Huge opportunity for movie channels, film distributors in the online, mobile space

    MUMBAI: There will be 165 million interactive (Internet and mobile) users in India by 2007 in the 20-40 year age group. Now there are 25 million net users and 37 million mobile users. The time that they spend on the net is comparable to the time spent reading newspapers and watching TV. While Indian film companies and movie channels have a presence online they do not do advertising related film related ecommerce as they should.
     
     
    Fifty five per cent of the online audience watches over one film a month in the theatre. Also most online surfers (70 per cent) prefer Hindi movies. Right now film marketers are under the incorrect impression that online users prefer English films (57 per cent). Seventy seven per cent of online users are aware of online ticketing.
     
     
    Only 22 per cent have bought tickets online as the number of theatres selling tickets online is limited. However on ecommerce sites the percentage jumps to 33 per cent. Therefore there is a case for film companies to have a healthy presence on ecommerce sites. Forty six per cent want to buy tickets online but the opportunity is not there. Sixty three per cent who buy tickets online have a propensity to buy movie merchandise online. They buy audio and video CDs, posters.
     
     
    Therefore film theatres and multiplexes would do well to invest in infrastructure as far as online ticketing is concerned. Right now this is restricted to Mumbai and Delhi. Forty five per cent want to watch films on the weekend, whereas 23 per cent say any day. As far as films on television are concerned 77 per cent watch Hindi films, 70 per cent watch English films and 26 per cent prefer regional films. On the other hand, 33 per cent watch at least one film in a week.
    These figures are contained in a report by out by Internet & Online Association (IOA). The research was done to understand the media habits of mobile and Internet users. The first study is related to films in cinemas and on television. Later on the study will examine soaps, sports, sitcom viewing habits of mobile users and net surfers.

    The base was 6200 with 51:49 Metro to Non Metro area skew. Speaking to Indiantelevision.com this morning, IOA president Preeti Desai said, “Most of the consumers surveyed have been online for the past five years and 94 per cent of those surveyed were in the 18-45 year age group. Out of this, 58 per cent love to answer surveys and 30 per cent spend 20 hours a week online.”

    “For mobile movie marketing there is life beyond ringtones and wallpaper. Consumers want SMS short reviews as well as schedule of theatres on the mobile. There is also scope for television channels to send out SMS alerts half an hour before a movie is going to be aired. Net users prefer to subscribe to film based alerts. At the same time it is important to find out viewers likes and dislikes and not send out alerts blindly. Our report helps in the regard,” she said.

    “Having said that the alert facility on mobile for films whether on cinema or on television does not exist. There is therefore a big vacuum here. Twenty five per cent are favourable to games related to films. More importantly though is the fact that online 40 per cent check out reviews before seeing a film. So television movie channels and film distributors need to place reviews in portals that are frequently accessed,” she informed.

    Another marketing move could be to send the schedule through email along with reviews that could be short or long as per user preference. People want to read reviews not just by critics but also by their peers and friends. In the US there are cases of a review being pushed out of a blurb straight out of an advertisement. So the online medium in India needs to be exploited in a more dynamic manner.

    Desai says that tongue twisting film URLs are difficult to remember. Therefore the URL should be advertised on television, newspapers. Online it needs to be registered on search engines. It should also be visible on film based portals and advertisements. Twenty eight per cent of net users reach film sites through film based portals. Advertising in the entertainment sections of portals is also useful.

    Celebrity endorsement could be used for online, mobile film advertising: Online advertising needs to move beyond the pro bono realm. While online ads are generally free through deals they are not delivering much value. Desai says that what is unfortunately not happening is an Amitabh Bhachchan or a Shahrukh Khan jumping from an Internet ad. A Coke which advertises a film on air could also be associated with the online promotion. It delivers a more integrated value.

    Online and on the mobile there could be a direct correlation between the celebrity, the brand that he endorses and the film that is going to be released in cinema halls or on television. A film star could record his voice telling people to see his/her film. Calls could be made to mobile subscribers who are fans of that star.

    Desai states that there a lot of scope for this when a company like Coke has an actor as a brand ambassador and is also advertising on a channel like Max which is airing the brand ambassador’s films.

    Companies should look at whether they could take their celebrity package him/her at the time of the films release or airing and talk to the same set of consumers online. For a cricketer a Saurav Ganguly can say that he is a fan of a film genre like action that a company that he is the brand ambassador of is sponsoring on television.

    “A lot of decisions are made on the spur of the moment. Trailers are also being watched online. Interestingly more than 50 per cent log on to the net at home. However logging on through GPRS, the office, a cyber café is also being done,” Desai said.

    “The report is aimed at helping film producers plan their marketing budgets for mobile and the Internet in conjunction with the traditional media.” Desai points out that the Internet and mobile are media meant for involvement whereas television, print and radio are used by advertisers to create awareness.

    The net and mobile facilitate P2P communication. The user dialogues with the product being advertised beyond 30 seconds. Therefore an incentive could be given to a mobile user of a free ticket if he SMSes information about the film to his/her friends. Recommendations on entertainment through the mobile are a huge marketing tool in the US.

    Multiplexes would be interested to note that 34 per cent of online users surveyed spend over Rs 300 on a film. While there is no set pattern around 72 per cent of users book tickets in advance. Nine per cent of users want an online movie fan club. This does not exist in India. The percentage would go up once producers work at making this facility available Desai says.

  • Film distributors’ strike, cricket affects ETC Q1

    MUMBAI: Listed media company ETC Networks has posted an income of Rs 103.49 million for the first quarter ended June 2003 as compared to Rs 127.90 million for the period ended June 2002. The net profit for the same period was Rs 24.63 million as compared to Rs 62.26 million for corresponding period ended June 2002.
    The Indian film distributors’ strike and the hangover of the World Cup cricket seem to have affected the Q1 FY 2003 results.
    The board of directors of the company at its meeting, held on 21 June 2003, approved the unaudited results for the first quarter ended 30 June 2003.
    A press release says that the company continued on its path of growth and profitability. It adds that the financial results of the first quarter of 2003 showed marked improvement over the previous quarter ending 31 March 2003. The total revenue and EBIDTA (Earnings Before Interest, Tax, Depreciation and Amortisation) during the current quarter, has registered an increase of 17 per cent and 57 per cent over the previous quarter, Q4 FY 2003.
    Q1 FY2003 (ended June 2003)
    Q4 FY2002 (ended March 2003)
    Q1 FY2002 (ended June 2002)
    Total Income
    Rs 103.5m
    Rs 88.2m
    Rs 127.9m
    EBITDA
    Rs 45.87m
    Rs 29.2m
    Rs 62.6m
    PBT
    Rs 32.46m
    Rs 19.3m
    Rs 50.2m
    EPS (not annualised)
    Rs 1.77
    Rs 4.65
    Rs 10.5
    The profit before tax (PBT) during first quarter have been Rs 32.4 million as compared to Rs 50.2 million achieved during the exceptional first quarter of previous year.
    The release says that current quarter performance has been affected by the Indian film distributors’ strike that happened during the period under review. The strike had curtailed the release of new films thereby resulting in substantial reduction in film music promotion related revenue on the channel. In the month of April 2003, the revenues were also constrained due to the hangover of the very large ad spends during the cricket world cup season.
    However, the release adds that the company is confident of achieving its growth target for the current financial year and expects the next quarter to be free from the extraordinary effects of the previous quarters’ performance, as listed above.
    In order to provide greater liquidity to the investors the equity shares of the company were got listed on the National Stock Exchange (NSE) of India under the symbol of ‘ETCNETWORK-EQ’. On the NSE, the ETC Networks scrip opened the day at Rs 55.20; gained 1.60 per cent and was last traded at Rs 58.10 (as of 12:30 pm on 22 July 2003).
    On the Bombay Stock Exchange, the scrip opened at Rs 56.45; gained 2.10 per cent and was last traded at Rs 57.60 (as of 1:00 pm on 22 July 2003).
    The release also maintains that the two ETC channels continued to maintain their leadership status in their respective markets. It claims that ETC Punjabi is commanding 60-70 per cent market share among all Punjabi channels and etc music has 35-40 per cent market share among the music channels (as per TAM).