Tag: growth

  • Netflix’s growth slows down in 2021, adds just 1.5m subs in Q2

    Netflix’s growth slows down in 2021, adds just 1.5m subs in Q2

    New Delhi: After a meteoric rise in 2020, the US-based streaming giant Netflix’s subscriber growth in early 2021 has slowed down. According to the company’s latest financial results, the OTT platform has added just 1.5 million subscribers, compared to 10.1 million new sign-ins it reported during the same period last year.

    Netflix, thus ended the quarter with 209 million paid memberships.

    The APAC region represented about two-thirds of the global paid net adds in the quarter. However, its Q2 paid memberships in the US and Canada region were slightly down sequentially, as it lost 0.4 million paid memberships in the region. “We believe our large membership base in UCAN coupled with a seasonally smaller quarter for acquisition is the main reason for this dynamic”, said Netflix.

    In Q2, revenue increased 19 per cent year over year to $7.3 billion, while operating income rose 36 per cent year over year to $1.8 billion. Revenue growth was driven by an 11 per cent increase in average paid streaming memberships and 8 per cent growth in average revenue per membership (ARM).

    According to the company, Covid has created some lumpiness in the membership growth.

    “We finished the quarter with over 209m paid memberships, slightly ahead of our forecast. The pandemic has created unusual choppiness in our growth and distorts year-over-year comparisons as acquisition and engagement per member household spiked in the early months of Covid. In Q2’21, our engagement per member household was, as expected, down vs. those unprecedented levels but was still up 17 per cent compared with a more comparable Q2’19,” said Netflix on Wednesday.

    Netflix chief financial officer, Spencer Neumann said, “We had the kind of big pull forward in 2020 of subscriber adds. We also had to push in production of some of our kind of key returning titles and big tent-pole new releases until the latter part of the year. But overall, the business is performing well. Our churn is actually down relative to the more comparable two-year-ago period in 2019, Q2 of ’19 before Covid.”

    For Q3 ’21, the company forecast paid net additions of 3.5m vs. 2.2m in the prior-year period. “If we achieve our forecast, we will have added more than 54m paid net adds over the past 24 months or 27m on an annualised basis over that period, which is consistent with our pre-Covid annual rate of net additions. We forecast that ARM will grow roughly 5 per cent year over year on a FX neutral basis in Q3’21,” said Netflix.

    As the streaming war heats up, Netflix said it continues to target a 20 per cent operating margin for the full year 2021 vs. 18 per cent in 2020. “After our big global launch in January 2016, we committed to steadily growing our operating margin thereafter at an average rate of three percentage points per year over any few-year period. Some years we’ll be a little over (like in 2020), some years a little under (like in 2021). Assuming we achieve our margin target this year, we will have quintupled our operating margin in the last five years and are tracking ahead of this average annual three percentage point pace,” it stated on Wednesday.

    Netflix is also shifting focus to growing its live action and animated original film offering, with several impactful titles in Q2. Its non-English content investments are also growing both in scope and impact. “Our P&L content expense for this content category has more than doubled in the past two years,” it added.

    The company is also in the early stages of further expanding into games, building on its earlier efforts around interactivity (eg, Black Mirror Bandersnatch) and Stranger Things games.

    “We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV. Games will be included in members’ Netflix subscription at no additional cost similar to films and series. Initially, we’ll be primarily focused on games for mobile devices. We’re excited as ever about our movies and TV series offering and we expect a long runway of increasing investment and growth across all of our existing content categories, but since we are nearly a decade into our push into original programming, we think the time is right to learn more about how our members value games,” it added.

  • PepsiCo’s snacks unit reports double-digit Q2 growth in India

    PepsiCo’s snacks unit reports double-digit Q2 growth in India

    New Delhi: Despite the severe impact of the second wave, global food and beverage major PepsiCo has reported double-digit growth in India in the second quarter for March-April-May.

    PepsiCo’s net revenue from the Africa, Middle East, South Asia (AMESA) division under which India falls, was at $1.6 billion in the quarter, up 62.97 per cent as against $0.98 billion in the corresponding period in 2020. Overall, the company’s global net revenue growth was up 20.52 per cent to $19.21 billion.

    In the AMESA division, PepsiCo’s snacks unit volume reported “double-digit growth in India and Pakistan and mid-single-digit growth in the Middle East, partially offset by a high-single-digit decline in South Africa,” said PepsiCo in an earning statement for Q2. “Beverage unit volume grew 38 per cent, primarily reflecting a four percentage-point impact of our Pioneer Foods acquisition and double-digit growth in India.”

    Additionally, the Middle East and Pakistan each experienced double-digit growth and Nigeria experienced mid-single-digit growth, it added. “The recovery from the pandemic contributed to a current-year increase in consumer demand, which had a positive impact on net revenue, unit volume and operating profit performance,” the US based company said, PTI reported.

     “As mobility trends improved, our international beverage business accelerated and delivered 22 per cent organic revenue growth, while our international snack business delivered 11 per cent organic revenue growth,” said PepsiCo.

    Over the outlook, the company is expecting its international markets to perform well despite an uneven recovery across geographies as vaccination efforts and mobility trends vary.

  • Sonali Malaviya appointed as managing director Essence India

    Sonali Malaviya appointed as managing director Essence India

    MUMBAI: Essence, a global data and measurement-driven media agency which is part of GroupM on Thursday announced the appointment of Sonali Malaviya as the agency’s managing director for India.

    Malviya will be responsible for leading continued client-centric innovation in data, analytics and technology, as well as business growth and company culture for the agency in the market. Based out of Delhi, she will report to Essence APAC CEO, T. Gangadhar and GroupM South Asia CEO, Prasanth Kumar. She will join Essence’s APAC leadership team and GroupM India’s executive committee as part of her role. Meanwhile, Anand Chakravarthy, previously managing director for Essence India, has moved on from the agency to pursue new opportunities.

    Joining Essence in 2018, Malaviya most recently led the agency’s Google business in India and Southeast Asia as senior vice president, client services. Previously, she served as chief operating officer at Colorbar Cosmetics and country marketing lead at Twitter in India. With over 20 years of industry experience, she has also held senior roles at Mindshare, PHD, Roy Morgan Research and MediaCom in India, the United Arab Emirates and Australia.

    “Sonali comes with rich experience in management, marketing and media across industries and markets, as well as a deep understanding of Essence’s business, work, people and culture. In addition to building strong, collaborative partnerships with clients and employees alike, she is an advocate of diversity and inclusion in the workplace. India continues to be a priority for Essence in APAC and globally, and with Sonali at the helm, I am very excited about our next phase of growth and development in the market,” said Essence APAC CEO, T. Gangadhar. “We would also like to thank Anand for his efforts in helping to establish our business in India over the last three years. We greatly appreciate his contributions and wish him the best in his future endeavours.”

    “We are glad to see Sonali take over the role of Essence India managing director. With her background and significant achievements, she will add to the capabilities of Essence and work with our teams to improve the client experience. As we continue to develop leaders internally, Sonali is also part of our growing pool of talent taking on various leadership roles across GroupM India. I look forward to working with Sonali and leveraging her expertise,” said GroupM South Asia CEO, Prasanth Kumar.

    “I am truly honoured to have the opportunity to lead Essence in India. Over the past three years, I have witnessed and been part of our incredible growth story in this market, and am very proud of what our agency, clients and employees have achieved together. I am looking forward to partnering with our highly talented teams and leveraging our industry-leading capabilities to help even more brands in India achieve data-driven growth and transformation, as well as valuable connections with consumers,” said Malaviya.

  • ViacomCBS Q3 results: Growth in streaming business

    ViacomCBS Q3 results: Growth in streaming business

    New Delhi: ViacomCBS delivered better-than-expected profit and revenue in Q3 on the back of robust growth in streaming, with domestic subscribers rising to 17.9 million up 72 per cent year-on-year (YoY).

    The mass media company's total revenue declined 9 per cent to $6.12 billion, but this was higher than market projections of $5.94 billion

    It also raised its annual paid subscriber forecast for its streaming services, after nearly hitting its previous target a full quarter ahead of time on strong demand for indoor entertainment during the pandemic.

    The streaming services registered significant growth in sign-ups, the company said, as CBS All Access benefited from strong demand for sports content and Showtime OTT from shows like The Chi and Billions.  It now expects to hit 19 million domestic subscriptions by the year-end for its streaming services, CBS All Access and Showtime, compared to its earlier estimate of 18 million.

    Revenue from streaming and digital video surged 56 per cent to $636 million in the third quarter, helped by a more than doubling of ad sales from its free, ad-supported Pluto TV.

    Pluto TV Domestic MAUs also increased to 28.4M, up 57 per cent YoY.

    ViacomCBS competes in a crowded US video streaming market with dominant players such as Netflix with close to 200 million global customers and Walt Disney Co, which has more than 100 million global paid customers for its streaming platform.

    Overall advertisement revenue, however, fell 6 per cent but improved from a 27 per cent plunge in the second quarter.

    Revenue in the company's filmed entertainment division, which includes Paramount Pictures, tumbled 31 per cent, primarily due to lower licensing revenue and theatre closures including limited seating, across the US and Europe.

    The company is on track to debut Paramount+ in early 2021 as a differentiated offering spanning live sports, breaking news and entertainment, including new and franchise-based originals.

    Excluding items, the company earned 91 cents per share, beating estimates of 80 cents.

  • TVS Motor Company clocks revenue growth of 6% in Q2

    TVS Motor Company clocks revenue growth of 6% in Q2

    CHENNAI: TVS Motor has reported revenue of Rs 4,617 crore in the second quarter of 2020-21 as against Rs 4,353 crore in the second quarter of 2019-20, registering a growth of 6 per cent.

    The two-wheeler maker’s PBT before exceptional items has grown by 14 per cent at Rs 267 crore during this quarter as against Rs 234 crore during the quarter ended September 2019. In the second quarter of last year, the company had reported a one-time exceptional gain of Rs 76 crore resulting in PBT after exceptional item of Rs 310 crore.

    During the quarter, it reported profit after tax (PAT) of Rs 196 crore. Despite Covid19 challenges, the company strengthened its supply chain during the second quarter of 2020-21. The production and sales improved consistently from July 2020 onwards. In the month of July 2020, the total two-wheeler sales was 2.44 lakh, it improved to 2.77 lakh in the month of August 2020 and in September 2020 sales further improved to 3.13 lakh. In the month of September 2020 sales grew by 4.2 per cent. Total two-wheeler sales of 8.34 lakh for the quarter is almost in line with last year's second quarter number of 8.42 lakh. Two-wheeler export sales grew by 7.8 per cent compared to Q2 of last year.

    Motorcycles registered sales of 3.66 lakh units in the quarter ended September 2020 as against sales of 3.42 lakh registered in the quarter ended September 2019. Scooter sales of the company for the quarter registered sales of 2.70 lakh as against sales of 3.33 lakh in the quarter ended September 2019.

    Read more news on TVS Motor Company

    Total three wheelers registered sales of 0.33 lakh units in the quarter ended September 2020 as against sales of 0.43 lakh in the quarter ended September 2019. Half-year results are not true reflection of the demand since Q1 of 2020-21 got severely impacted due to COVID lockdown.

    The total two-wheeler sales of the company for the half-year ended September 2020 is 10.90 lakh units as against 17.26 lakh units recorded in the half-year ended September 2019. The total three-wheeler sales for the half-year ended September 2020 is 0.45 lakh units as against 0.83 lakh units registered in the half-year ended September 2019.

    The total export of two and three wheelers for the half-year ended September 2020 is 2.96 lakh units as against 4.20 lakh units in the half-year ended September 2019. Total revenue in the half-year ended September 2020 is Rs 6,051 crore against Rs 8,823 crore in the half-year ended September 2019. PBT before exceptional items for the half-year ended September 2020 is Rs 78 crore as against Rs 443 crore in the half-year ended September 2019.

    During last year, the company had reported a one-time exceptional gain of Rs 76 crore resulting in PBT after exceptional item of Rs 519 crore. During the half-year ended September 2020 the company reported Profit After Tax of Rs 57 crore.

  • Nestle India clocks double digit growth on the back of in-home consumption

    Nestle India clocks double digit growth on the back of in-home consumption

    NEW DELHI: Nestle India has clocked total sales of Rs 3,525 crore in Q3 2020 ending on September 30, 2020. Domestic sales as well as total sales grew at 10.2 per cent and the total profit during this period was Rs 587 crore. As a result, the company has announced an interim dividend of Rs 135 per equity share.

    The FMCG company registered double digital growth in key brands boosted by in-home consumption. Interestingly, the demand for ‘Out of Home’ channels has also improved during the quarter. Also, the e‐commerce segment grew by 97 per cent, contributing about 4 per cent of domestic sales. 

    Nestle India chairman & MD Suresh Narayanan announced that the company has planned an investment of Rs 2,600 crore over in India over the next three to four years. This is to augment their existing manufacturing capacities, as well as towards the construction of a ‘state of the art’ factory in Sanand, Gujarat, he added.

    “I am extremely proud of my team, our distribution partners, hundreds of suppliers including MSMEs, many thousand farmers, agencies, service providers large and small, as well other stakeholders in our business, for their determination, anticipation, tenacity, imagination and sheer hard work that has helped us achieve a strong performance this quarter. This has been achieved in the face of daunting challenges in operations thrown at us by this pandemic. We are proud of our 108‐year long association with the nation and nearly six‐decade long manufacturing journey,” Narayanan said.

    The quarter witnessed growth driven by an improved supply situation, with factories returning to normal output. Key brands like Maggi Noodles, Maggi Sauces, Kitkat, Nestlé Munch, Nescafe Classic & Nescafe Sunrise witnessed double digit growth on the back of increased in-home consumption.

    “Demand in ‘Out of Home’ channels improved during the quarter but continues to be impacted due to the overall environment. We continued our strong performance in the e‐commerce channels, which grew by 97 per cent and now contributes about 4 per cent of domestic sales,” the company stated in its Q3 earnings report.

  • Vice India raring to break into a sprint

    Vice India raring to break into a sprint

    MUMBAI: Vice India is betting big on its creative agency Virtue Worldwide, which has helped provide solutions to brands in several markets.  Among the brands under its banner are ABInBev, Samsung, Uber, Airbnb and Google.

    Now, the agency within the Shane Smith, Suroosh Alvi-founded outfit is rolling out its suite of brand solutions in India.  Among the first partnerships, it has announced, is the one with PepsiCo’s Mountain Dew.

    The collaboration will see the Vice crew follow and explore the journey of a real-life hero Arjun Vajpai as he attempts to climb Mt Kangchenjunga – one of the most difficult summits to conquer.

    “We are excited to be the first to work with Vice India, that aims to be the vehicle and voice for the Indian youth. This partnership represents the convergence of two brands coming together to tell an inspiring story of courage to millions of young consumers across the country,” says Pepsico India associate director –Mountain Dew Naseeb Puri.

    Adds Vice India chief executive officer Chanpreet Arora:  “We are happy partnering with PepsiCo on one of our first content pieces in India so that the stories we want to tell reach out to the country with the help of one of India’s biggest and most recognisable brands.”

    Arora, along with head of content Samira Kanwar, has been working on roping in more than 40 young journalists, editors, producers and creatives in India to focus on content production, editorial, creative services and content distribution. The focus, according to a Vice India release has been to put in place “a local, young and experienced leadership team, deeply embedded in the culture of India.”

    She hopes that other brands will sign on with Vice India, which is being positioned as a full-scale media company with content at its centre and a multi-platform distribution plan – producing scripted, film, news and culture content from India for television, SVOD, OTT and digital platforms. The launch date is planned for April, and the teams in both the cities have been working at a frenetic pace to get things up and running by D-Day.

    Points out the Delhi-based Arora: “We are committed to building a company that speaks to a generation that is defining today’s cultural conversation in India and that is based on values of empathy, equality and inclusion. All our decisions, including choice of partners, must reflect this core belief.”

    Vice India’s planned local content will span conversations across topics like food, music, sex, identity, nightlife, arts, politics, literature, and comedy, showcasing the realities and diverse aspects of India without conforming to the boundaries set by multiple languages or cultures.

    Reveals the Mumbai-based Kanwar who is spearheading all the content offerings that Vice will dish out: “Content sits at the centre of everything we do. We hope to create content and experiences that matter to India’s youth irrespective of the language or regions we come from. Vice India will be a platform for young people to speak up, be heard and also feel at home about their own identities and ideas.”

    Adds Vice CEO Asia Pacific Hosi Simon: “Vice India’s goal is to be deeply locally relevant for youth across all parts and cultures of India. We are very thankful for our partnership with The Times of India, led by Times Bridge. Together, we have architected as ambitious a launch as Vice has put together anywhere in the world.”

    The Times Group investment arm Times Bridge CEO Rishi Jaitly, highlights that Vice India is poised to delight millennial and GenZ audiences across the country from day one. Says he: “The stories and experiences produced by Vice India will engage youth culture here in a manner not previously seen. We’re proud of our team and look forward to a breakthrough 2018.”

    For Vice globally, one of the big changes that happened earlier this month was the elevation of Shane Smith as executive chairman from CEO and the stepping in of former A+E Networks CEO Nancy Dubuc as his replacement. A&E was one of the earliest investors in Smith’s vision for Vice.  Smith was kicked upstairs to focus on content creation and forging strategic deals and partnerships to grow the company. 

    Also Read :

    Chanpreet Arora appointed CEO of Vice Media India

    Vice Media to launch Vice India on April 2

    Vice Media to build largest OTT platform, expand to 80 markets by early ’18

  • Budget 2015: Futuristic and progressive, feels media industry

    Budget 2015: Futuristic and progressive, feels media industry

    MUMBAI: If Suresh Prabhu’s Rail Budget spelt out a pro – poor stanza, then Arun Jaitley has recited a pro-poor poetry while presenting the Union Budget.

     

    With burdens of expectations and aspirations, the Finance Minister started his presentation at 11 am on 28 February. As it is said ‘the morning shows the day,’ his initial sentences enlightened poor of the country. With pension and health insurance schemes, the government successfully managed to add smiles to the below middle class society. Jaitley’s pro-poor, pro-growth and pro-reform mantra followed throughout the budget. Sanitization, minority education, preservation of heritage sites, job creation and empowerment of youth were given supreme priority.

     

    Viacom18 Media group CEO and CII National Committee on Media & Entertainment chairman Sudhanshu Vats said, “Two words sum up the essence of Budget 2015: balance and clarity. Finance Minister Arun Jaitley walked the tightrope by staying away from big bang announcements that might have strained the fiscal position, while taking substantial steps on matters of tax, social security and public investment (especially in Infrastructure). On the reduction in corporate tax rates to 25 per cent, the 4-year implementation roadmap is a welcome addition. This is the clarity that the corporate sector needs so far as tax policy is concerned. While personal income tax slabs remain unchanged, higher exemptions are targeted towards savings and would add to retirement income in taxpayers’ wallets. ‘Wallets’ too will don a different connotation given the FM’s vision for a cashless society. The clarity on corporate tax road map is a welcome development for investments in the Indian M&E sector.”

     

    He further added, “The reduction in withholding tax rates (to 10 per cent) on royalty and FTS payments to non-residents has finally been granted. The increase in service tax is probably to bring the rate closer to the rates expected under the GST regime. In that context, the step is the proverbial bitter pill for our industry. I must compliment the FM for his announcement of social security schemes for the vulnerable sections of society as a vital cornerstone towards inclusive growth and development. All in all, this is a ‘Make in India’ budget that will truly ‘Make India’.”

     

    ZEEL CEO and MD Punit Goenka congratulating Jaitley said, “Indeed a futuristic and growth oriented Super Budget presented by Arun Jaitley! The Budget has certainly addressed the overall tax concerns and has portrayed a positive picture for the investors! It is certainly a Budget to remember for the Common Man, since it has remarkably addressed all the key aspects like housing, jobs & education! Congratulations Arun Jaitley for wonderfully addressing the nation’s concerns through the Budget 2015 & for setting some key goals for 2022!”

     

    Reduction of corporate tax, increase in service tax and abolition of wealth tax with a surcharge of two per cent for income over Rs 1 crore was the eyebrow raiser for the corporate industry. But the line that will be music to many industrialists was, “abhi permission lene me hi saalo beet jaate hain, project shuru bhi nahi hota” (it takes years to get the necessary permissions and the projects don’t take off), which signifies minister’s inclination towards establishing a business friendly environment. He also spoke about forming a pre existing regulatory mechanism to ensure fast and transparent business market.

     

    According to Reliance Broadcast Network CEO Tarun Katial, the budget is positive, realistic and progressive in nature. “The overall budget seems to be well thought of with a holistic approach and some key announcements for the service industry. The proposed reduction in corporate tax over the next four years is encouraging as it will result in higher investments, growth and more jobs creation. The move to increase the service tax however will put smaller advertisers under pressure and hamper advertising spends. The move on CSR is good and radio can be used effectively as a catalyst for social transformation in initiatives like Swachh Bharat, since radio can reach to the remotest of the corners where no other medium does because of literacy and cost issues, especially so with phase III and deeper reach. Overall a very good budget and I congratulate the Government for presenting us with a good futuristic budget.”

     

    The level of expectations and aspirations were visible in share market too. Both Sensex and Nifty soared before Jaitley’s presentation. The market was waiting for some big announcements and reduction of corporate tax was one of them. 

     

    The major outlines of the budget include:

     

    Policy Reforms

    · Create a universal social security system for all Indians

    · Commodities regulator to be marched with SEBI

    · New bankruptcy code in 2015/16

    · Promise to amend the RBI act this year and provide for a monetary policy committee

    · To set up public debt management agency

    · To raise visa-on-arrival facility to 150 countries from 43

     

    Taxation

    · To implement goods and services tax by April 2016

    · To increase service tax to 14 per cent

    · Reduction in corporate tax to 25 per cent from 30 over next four years

    · Wealth tax to be abolished, but a surcharge of two per cent for ‘Super Rich’ earning over Rs 1 crore

    · Plans to introduce direct tax regime that is internationally competitive on rates without exemptions

     

    Fiscal Deficit

    · Fiscal deficit seen at 3.9 per cent of GDP in 2015/16

    · Challenge of achieving fiscal target of 4.1 per cent of GDP

    · Commitment to meet medium term fiscal deficit target of three per cent of GDP

    · Current account deficit below 1.3 per cent of GDP

    · Need to keep fiscal discipline in mind despite need for higher investment

     

    Growth

    · GDP growth seen at between 8 – 8.5 per cent

    · Aiming double digit durable growth rate, achievable soon

     

    Inflation

    · Consumer inflation to remain close to five per cent by March, opening room for more monetary policy easing

    · Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below sic per cent

     

    Investment

    · Propose to do away with different types of foreign investment and replace them with composite caps

    · To allow foreign investment in alternative investment funds

  • We deserve it, says Nina Jaipuria as ad sales rates hike 25-30%

    We deserve it, says Nina Jaipuria as ad sales rates hike 25-30%

    MUMBAI: Pleasing a child is a daunting task and taking the challenge head on is none other than Nickelodeon and Sonic. With the new year coming in, the channels are set to excite its viewers with surprises and celebrations. Re-enforcing its market leadership, while Nick has got back Oggy and the Cockroaches, the action packed, chase comedy Pakdam Pakdai will be seen on Sonic, starting 22 December. 

    This is in line with the channel’s strategy to bring alive the thought of “Action Ka Tevar with Comedy Ka Flavour.”

    “Nick has already established its leadership position with characters like Motu Patlu and Ninja that we have nurtured over the years. Now its time to focus on Sonic. The shift of Pakdam Pakdai to Sonic is a strategic move in that direction. The show will rest only on Sonic since we do not want to dilute the franchise and keep both our channels differentiated,” says Viacom18 EVP and business head kids cluster Nina Elavia Jaipuria.

    To back this up, it is launching the first Pakdam Pakdai movie called Pakdam Pakdai – Don v/s Billiman on 25 December at 11.30 am on Sonic. Adding to the supersonic line-up is Sci -Fi Santa and all new episodes of Power Rangers with an entertaining array of new shows like Rimba Racer, Mini Ninjas and Jungle Bunch.

    To up the entertainment quotient, Nick will be airing the fifth exclusive made for television Motu Patlu movie: Motu Patlu Aur Khazane Ki Race. “There is always room for more. The kids demand for more and hence as the year progesses you will not only see newer episodes of Motu Patlu but also many more made for television movies.”

    Talking about the next big initiative, Oggy and the Cockroaches is all set to make a come back on Nick. Premiering on 1 January 2015, the channel has already created a bank of 65 episodes. This character was made about five years ago and very quickly it became a chart topper. “What we got was a silent show, but we dubbed it and it became a runaway success.” 

     

    2014: A successful year…

    In the year, Sonic has grown almost 200 per cent in terms of ratings. “We couldn’t have asked for a better growth story for Sonic. Small and steady but we are happy the way the graph is looking now.”

    As per TAM ratings provided by the channel in All India ABC CS 4-14, Sonic’s reach has grown by 63 per cent and time spent by 93 per cent as compared to last year. “Not only we want more viewers but we want them to stick on our channel and the growth clearly shows that the content is sticky and the characters have already made their way into the hearts and minds of children. Our closest competitor Disney XD has de-grown and trails by 25 TVTs in November’14,” points out Jaipuria.

    What led to the 200 per cent viewership growth on Sonic? The holiday season did wonders for the channel where close to 1.5 million kids engaged all through summer. The channel conducted a ‘Back to School’ campaign to ‘Be the Ranger’ across 11 cities and 200 schools and grabbed eyeballs of almost 1.6 lakh kids. Moreover, it was followed by ‘Diwali Dhamaka’ campaign that reached out to over 10 million kids across the country. ‘Meet the Rangers in USA’ was an exciting mass media campaign with the ultimate thrill factor where the winner kids got a chance to meet the actual power rangers in USA.

    Power Rangers visited malls and game-plexes and challenged kids to take up the multicity gaming championship. The channel received over 15,000 entries. With Christmas nearing, the channel is conducting a sci-fi Santa contest, a month full of amazing prizes to be won every day.

    The reason behind so many campaigns and activities was to make Sonic more popular amongst its TG. “The Sonic task was very different for us because it was about creating awareness for the channel in the digitized markets given that Sonic is only available in digital markets.”

    From April 2013 to November 2013 and from April 2014 to November 2014, the kids’ category has witnessed a growth of 7 per cent. From the category, Nick tops the chart with 21 per cent growth in the ratings followed by Hungama with 9 per cent and rest all the channels have registered a drop.

    So what has worked wonders for Nick? According to Jaipuria, the three stalwarts on the channel – Motu Patlu, Pakdam Pakdai and Ninja Hattori have added to most ratings. In a very short span of time Motu Patlu managed to grab 44 per cent of the ratings, Pakdam Pakdai (9 per cent) and Ninja Hattori  (43 per cent).

    Jaipuria believes it is not just about TAM, but how the channel captures the hearts and minds of the little kids and to create the bond and relationship. “In the kids category the characters are most important to drive viewer affinity.  It is the character that forges the relationship and bond with our viewers along with engaging story-telling and great quality of animation.”

    The channel conducted ‘Be the Boss’ campaign where Nicktoons travelled to each winner’s city to hand them their ‘Appointment Letters’ to invite them to the corporate office. Over 21,000 entries participated to ‘Be the Boss’.

    Talking about the achievements, in the 11th edition of Ormax – Small Wonders Study, Nick’s Ninja Hattori, Motu Patlu and Sonic’s Power Rangers made their way amongst the top 10 characters.

    So, what made Nick stand out in the crowd? According to Jaipuria the trend in the category has not been Hollywood or Bollywood, but it is about creating movies that kids actually love. The fourth movie – Motu Patlu Kung Fu Kings was a runaway success. It was the category leader and in the week when it premiered it garnered around 777 TVTs.

    In 2014, Nick has attracted almost 20-30 new advertisers. Brands like Snapdeal, OLX, Godrej, Gionee Smartphones, Rasna etc have come on board. Talking about the entire franchise, it has attracted 105 new advertisers and 300 brands.

    With holidays coming, the channel is celebrating with consumer activations. ‘Lift your Gift’ contest, which started from 8 December and will go on for a month long, is one example.

    The channels have the advantage of being part of the network, which caters to the age group of 0-50 plus. “We have kids, youth and then general entertainment and that’s how we leverage and build on each other.”

    For instance, the characters Motu Patlu hit the highest peak of popularity when they did the jig with the stars in Jhalak Dikhlaja (JDJ).

    What seems to be the happy moment for Nick is that the ad sales category has grown by 14 per cent which is actually growing faster than the kids category (7 per cent). Jaipuria says the reason is the 12-minute ad cap which fuelled the shortage of inventory and therefore led to an automatic increase of ad rates.

    Considering the 12-minute ad cap, Jaipuria reveals that the entire network is already houseful. But talking about the other side of the story, she feels the category continues to be under indexed. “While the ad sales for the category is growing, it is still hugely under indexed.  The genre contributes about 9 per cent of viewership at a CNS 4+ but less than 2 per cent of the total TV  ad pie.  This needs to be addressed and we are sure that this disparity will soon be corrected.”

    The network has gone beyond the usual FCT and is working on innovations; from customised on-air solutions to product licensing and from in-show placements to product licensing and promotional licensing. “The non FCT pieces are one that not only helps broadcasters like us but also helps advertisers in a big way.”

    When the IP belongs to the owner, one can possibly try and create things with it. For example, Pakdam Pakdai has made it to overseas markets and is syndicated to almost seven territories outside of India like Middle East, South Asia etc and has become a small part of the revenue stream for the channel. 

    Keeping ahead of the curve and being future ready, assuming kids are consuming television on mobile, laptops and internet, the network has got its websites up and running. While Nickindia.com boasts of 3.5 million page views, sonicgang.com has 1.75 million page views. To top it all, it witnessed over 5 minutes of average time spent on each visit.

    Keeping in mind that kids won’t always be available on laptops or desktops, it has launched a Nick World app with the Nick shows and Keymon O’Fish game on iOS and Android platforms. It has got almost 30,000 downloads.

    Jaipuria feels that the challenge in the industry is to write movies in animation and there is dearth of writers in the space. “It’s the chase at the end of the day. We have handful of people in the category and for us hunting new talent is always a task. Even the production houses find it very hard.”

    On the financial side, Jaipuria reveales that the ad sales rates for the entire franchise has grown by 25-30 per cent. “We deserve it and the category also deserves it.” She further says that unlike Hindi fiction which costs around Rs 6-8 lakh per episode, animation content per episode is Rs 15-20 lakh.

    On the subscription revenue, the network has witnessed a growth of 15-18 per cent. “Thankfully the PnL’s are looking healthier, thanks to the subscription revenues.”

  • Growth in mobile broadband spurs internet use in August

    Growth in mobile broadband spurs internet use in August

    NEW DELHI: There was a sizeable increase in the number of broadband subscribers to 74.31 million by August-end as compared to 70.81 million subscribers by July-end, thus showing a monthly growth of 4.95 per cent.
     
    The largest growth rate in broadband was in the mobile devices users (phones and dongles) which went up by 6.29 per cent from 55.34 million to 58.82 million. The growth in fixed wireless subscribers (Wi-Fi, Wi-Max, Point-to-Point Radio & VSAT) was 2.75 per cent from 430,000 to 440,000. The growth in wired subscribers was a mere 0.06 per cent from 15.04 million to 15.05 million.
     
    The top five wired broadband service providers at the end of August were BSNL (9.97million), Bharti Airtel (1.39 million), Mahanagar Telephone Nigam (1.13 million), Beam Telecom (0.40 million) and YOU Broadband (0.41 million).
     
    The top five wireless broadband service providers at August-end were Bharti Airtel (15.14 million), Vodafone (12.51 million), Idea Cellular (9.85 million), BSNL (8.35 million) and Reliance Communications Group (6.53 million).