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Tag: Harish Thawani

  • BCCI, Nimbus look to give domestic cricket a facelift

    BCCI, Nimbus look to give domestic cricket a facelift

    MUMBAI: For many years domestic cricket in India suffered from neglect by the administration (read Board of Control for Cricket in India – BCCI). However, the Indian cricket board, along with its television partner Nimbus, are looking to turn things around. The plan calls for rebranding of domestic cricket events as well as telecast of domestic cricket not just in India, but also abroad.

    The season kicks off from 1 October and runs till April 2007. The matches will air on Neo Sports, which is being positioned as the Home of Indian Cricket on TV. Neo Sports launches on 1 October 2006.

    BCCI VP and marketing subcommittee chairman Lalit Nodi says, “It has been a dream for us to make sure that domestic cricket is given as much importance as international cricket. We have given brand names to domestic events.

    “So the NKP Salve Challenger Trophy will now be known as Challenger Series for the NKP Salve Trophy, the Ranji Trophy – Elite Division is now titled the Super League for the Ranji Trophy, The Ranji Trophy Plate Division is now known as the Plate League, and the Deodhar Trophy is now known as the All Star Series for the Deodhar Trophy.

    “The Inter State One Day Knockout is now known as the Premier Cup. This initiative is the first of a series of exciting plans that we have in store. While we are looking to get players of the Indian national side to play, the aim is to have many stars emerge from domestic cricket. Why should there be only 11 cricket stars? We can easily have 300. We will monitor innovations as we go along. We are also looking at the mobile to promote domestic cricket. Mobile is a viral medium courtesy features like SMS and this is an area that we are looking to tap into. This will provide a value add for fans who want to follow their team.”

    Nimbus Chairman Harish Thawani says, “This has been a three month process of us working with the BCCI so that our goals were aligned. When we telecast the Challenger Trophy last year on a recently launched network (Zee Sports) it managed TRPs of 1.93. This shows that television does bring in an audience for domestic cricket.

    “What we are doing though is not just a branding exercise. We worked with the BCCI on the scheduling. A lot of time went into working on the logistics. The aim is that domestic cricket should not overlap with the days on which the Indian national side is playing. The one day matches will be day/night fixtures. Over 80 per cent of ODI matches will be day/night encounters.

    “We have also managed to persuade licensees globally to air domestic cricket. So domestic cricket will be seen in the UK on Sky Sports, in Australia on Fox Sports, in Malaysia on Astro and in Africa on Super Sport. On the net it will be webcast on www.willow.tv. We are also expecting to announce a deal in the US.”

    Thawani, however, adds that it will take one season to see what impact the push being given to domestic cricket has had.

    BCCI member IS Bindra was frank enough to admit that it was the BCCI’s fault that domestic cricket has languished to the extent that hardly any people come out to watch matches. “There was a time when a Deodhar Trophy match would have 70,000 people in attendance. One of the failings of the BCCI in the past has been the lack of attention given to domestic cricket. We are looking to correct this. Television coverage by Nimbus will attract people to the arena. It will give viewers the feeling that something of importance is happening. Last year when the Challenger Trophy was telecast we had a 70 per cent attendance on the ground. For the final it was 100 per cent full. In Australia often the finals of the domestic season have a better attendance than some international one day matches.

    “In England the tickets for the final matches of the domestic season are booked a year in advance. I don’t see why we cannot approach that level with proper marketing of our product. Aggressive marketing helps and a good example is the BCCI rankings for domestic cricket which will be launched next month. We have managed to raise 10-15 times more than what the ICC has managed for their rankings. We are on the brink of a revolution as far as domestic cricket is concerned.”

    Thawani adds that Nimbus is looking to sell daily news packages of domestic cricket to news channels.

    One important issue is that of advertising. It is no secret that viewers are unhappy about the sheer volume of ads in a match. Often one sees five balls in an over instead of six as the channel has gone for an ad break at the fall of a wicket. Thawani says that an automated playout system is being put in place so that not a ball is lost. There will be no manual override.

    Modi says that this issue is being taken seriously by the BCCI. It has in fact mandated that it cannot happen. “If ads are put in when a wicket falls instead of a channel showing replays of the wicket taken and a ball is lost then it is a breach of contract,” Modi asserted.

  • Where goest the broadcast bill?

    Where goest the broadcast bill?

    The fate of the broadcast bill hangs on a razor’s edge, despite Braodcast Minister Arun Jaitley’s pledge to table it in the surrent budget session of parliament.

    Lobbying for the Broadcast bill is expected to reach fever pitch after March during the Budget session recess. The broadcasters lobby group, The Indian Broadcast Foundation has set up three committees for the purpose. Discovery India’s Kiran Karnik, News Television India’s Peter Mukherjee and Urmila Gupta, and Sony Entertainment Television’s Kunal Dasgupta are looking at convergence and spectrum allocation issues. ESPN’s Manu Sawney and Turner International’s Anshuman Misra are reviewing technology convergence, especially the last mile infrastructure.

    Content provider UTV’s Ronnie Screwvala and Khursheeda Mody, Nimbus Communications Harish Thawani and MTV India’s Alex Kuruvilla are looking at Internet regulatory issues. Three government committees are also reviewing critical areas in the bill.

    Jaitley expects to reach a consensus during the recess before tabling the bill in parliament. Some analysts believe that foreign equity in cross media holding and DTH may not form a part of the bill, plagued by opposing political viewpoints. Others indicate that the bill may be tabled, but will go into a sub committee for further review.

  • ICC rights bidders to be called to Dubai by month-end

    ICC rights bidders to be called to Dubai by month-end

    MUMBAI: The International Cricket Council (ICC) says that this month will mark the next stage of its sale of media and sponsorship rights for events from late 2007 to 2015.

    Information available with indiantelevision.com indicates that potential commercial partners that meet the ICC’s criteria for bidding will be invited to Dubai at the end of this month. The aim is to to further progress the process that began in April when the ICC’s Executive Board decided the host for its tournaments in that eight-year period.

    The period will have 18 ICC tournaments. The five big ones are the two World Cups, in Asia (2011) and Australia/ New Zealand (2015) respectively, and a minimum of three Champions Trophy tournaments. The deal will also include the first two, Twenty World Championships, in South Africa (2007) and England (2009). The latter takes place in the ICC’s centenary year.

    Potential partners who meet the ICC’s qualification criteria that have already made expressions of interest will shortly be receiving correspondence detailing when they will be able to meet ICC officials for talks.

    The ICC says that any interested parties yet to express interest in the rights can still do so by contacting, the ICC.

    The ICC’s team of negotiators will include former President Ehsan Mani, who played a key role in securing the current agreement with Global Cricket Corporation (GCC), which is owned by News International Limited.

    That agreement, which began in 2000 and ends with the ICC Cricket World Cup 2007 in the West Indies next March and April, includes two ICC Cricket World Cups and four ICC Champions Trophy tournaments. The GCC had paid out $550 million to secure the rights after a fierce bidding war with Subhash Chandra’s Zee Telefilms. At the time of bidding the GCC was a 50:50 JV between News Corp and World Sport Nimbus (itself a 50:50 JV between Harish Thawani’s Nimbus and the UK-headquartered World Sport Group). News Corp subsequently bought out WSN’s stake in the JV.

    ICC CEO Malcolm Speed said, “The sale of the ICC’s commercial and broadcast rights makes this a hugely significant and exciting time for cricket. That sale gives us the opportunity to place cricket on a sound financial footing for the next eight years and, by doing that, it will provide all our members with the chance to both sustain and grow the game.

    “We have been gratified and encouraged by the expressions of interest we have already received. We are now looking forward to meeting our potential partners and have only one aim in mind – securing the best deal for cricket.”

    The ICC has also included two women’s World Cups in the timeframe. One takes place in Australia in 2009 and the other takes place in India in 2013.

  • Nimbus appoints Shashi Kalathil as CEO of Neo Sports

    Nimbus appoints Shashi Kalathil as CEO of Neo Sports

    MUMBAI: Nimbus has appointed Shashi Kalathil as Chief Executive Officer of its sports broadcasting business Neo Sports. This will be effective from October this year.

    Kalathil comes to Nimbus from the Tata Group and brings with him experience from the FMCG and telecom sectors. Prior to this he has served at Pepsi as executive director-marketing and has also had a stint with VSNL.

    In addition to Shashi, Scott Ferguson has been appointed as Chief Operating Officer and will be based in Singapore. Within the next few days, Nimbus expects to make more appointments in its sports broadcasting business.

    Commenting on his induction, chairman Harish Thawani said, “I have known Shashi over the years as a client (when he was at Pepsi) and apart from his obvious pedigree as a cutting-edge professional, above all he brings with him a level of integrity and values that are universally admired.”

    Shashi added, “My mandate will be to lead a world class and passionate management team that has amazing depth of sports expertise, to greater consumer focus and to deliver outstanding value to Neo Sports’ advertisers and viewers through innovative use of technology.”

    As previously disclosed, Nimbus shall be launching the first of its Neo Sports channels in the last quarter of 2006. Nimbus is constructing a state-of-the-art production and broadcasting facility in Mumbai’s western suburbs and expects to use several technological innovations to enhance the quality of sports broadcasting in India and be ready with interactive services by early 2007.

  • Nimbus appoints Shashi Kalathil as CEO of Neo Sports

    MUMBAI: Nimbus has appointed Shashi Kalathil as Chief Executive Officer of its sports broadcasting business Neo Sports. This will be effective from October this year.
    Kalathil comes to Nimbus from the Tata Group and brings with him experience from the FMCG and telecom sectors. Prior to this he has served at Pepsi as executive director-marketing and has also had a stint with VSNL.

    In addition to Shashi, Scott Ferguson has been appointed as Chief Operating Officer and will be based in Singapore. Within the next few days, Nimbus expects to make more appointments in its sports broadcasting business.

    Commenting on his induction, chairman Harish Thawani said, “I have known Shashi over the years as a client (when he was at Pepsi) and apart from his obvious pedigree as a cutting-edge professional, above all he brings with him a level of integrity and values that are universally admired.”

    Shashi added, “My mandate will be to lead a world class and passionate management team that has amazing depth of sports expertise, to greater consumer focus and to deliver outstanding value to Neo Sports’ advertisers and viewers through innovative use of technology.”

    As previously disclosed, Nimbus shall be launching the first of its Neo Sports channels in the last quarter of 2006. Nimbus is constructing a state-of-the-art production and broadcasting facility in Mumbai’s western suburbs and expects to use several technological innovations to enhance the quality of sports broadcasting in India and be ready with interactive services by early 2007.

  • Nimbus to launch 3 sports channels, raises $ 30 million

    Nimbus to launch 3 sports channels, raises $ 30 million

    MUMBAI: Harish Thawani’s Nimbus Communications Limited today announced that it would be launching three sports channels between October 2006 and September 2007.

    Nimbus also announced that it has raised Rs 1.35 billion ($ 30 million) fresh capital from Deutsche Bank with the option of seeking another $ 30 million. SAE Euromax Capital Ltd, the London based boutique investment bank acted as the transaction adviser to Nimbus.

    The first, a cricket centric sports channel, will commence broadcasting from October 2006. The second channel will focus on sports entertainment, not restricting itself to merely sports events but also broadcasting sports themed entertainment programmes, is scheduled to commence broadcasting from April 2007. The third channel will be a sports news service and will launch September 2007.

    It was last August that UK-based private equity and venture fund 3i acquired around 33 per cent stake in Nimbus for $45.50 million (approx Rs 1.97 billion).

    The new capital raised is being largely invested by Nimbus in its sports broadcasting business. Nimbus believes that the introduction in India in 2006 of three new DTH platforms in addition to the existing DishTV (not counting Doordarshan’s free service) will provide a major new thrust to cricket channels. The reasoning being that in addition to revenues from cable, multiple DTH platforms would drive subscription revenues.

    Nimbus plans to provide separate feeds to DTH (HDTV, interactive, multiple languages), cable (SDTV customised, English/Hindi) and DD (basic feed).

  • ‘We are targeting a 50% growth in 2006-07 on the back of the Fifa World Cup’ : Sricharan Iyengar – ESPN Software India Ltd vice president sales and marketing

    ‘We are targeting a 50% growth in 2006-07 on the back of the Fifa World Cup’ : Sricharan Iyengar – ESPN Software India Ltd vice president sales and marketing

    ESPN Star Sports (ESS), a monopoly in satellite sports broadcasting for years, has found challengers like Ten Sports, Max and Zee Sports with cricket content being fragmented. The latest thorn in the playing field is Harish Thawani who walked away with the coveted four-year India cricket rights from BCCI (Board of Control for Cricket in India) for a humungous $612 million.

     

    For ESPN and Star Sports, the running in the current fiscal has been particularly tough. India-Zimbabwe series was the only India-playing cricket property ESS had. Market observers say subscription revenues from cable TV have seen a substantial dip, with various estimates putting the fall in the region between Rs 1.3 billion to Rs 1.7 billion.

     

    But ESPN Software India Pvt Ltd vice-president, sales and marketing Sricharan Iyengar has strongly dismissed these as “baseless rumours” in the market. According to him, the two sports channels have become strong brands which consumers want because of their all-round sports content. The company has managed to sustain its subscription revenues from cable TV operators, he says. Besides, direct-to-home (DTH) has thrown up an added opportunity even as Dish TV has managed to gather close to one million subscribers.

     

    In an interview with Indiantelevision.com’s Sibabrata Das, Iyengar talks about the important properties that ESS has for the next two years including the Fifa football World Cup. Responsible for overseeing the marketing and distribution functions of ESPN and Star Sports across South Asia, he says ESS has a target of 50 per cent growth in revenues for the 2006-07 fiscal. He also elaborates on how ESS has created a wholesome sports network while pursuing with aggressive buying of cricket rights.

     

    Excerpts.

    Having lost sizeable amount of India-playing cricket, has ESPN Star Sports (ESS) entered into a phase of de-growth in subscription revenues?

     

    We have been able to sustain our revenues in the current fiscal (ended June, 2006) on the back of other sports like football and hockey. We have achieved this despite the absence of key driver programming. The only India-playing cricket property we had was the India-Zimbabwe series, but we had to share it with Doordarshan. This shows that the ESS brand stands for delivering all-round sports. And it is this that makes us optimistic about the future.

    Does this mean that you will return to the growth path in the coming year?

     

    There is no reason for us to feel that the business is unhealthy. We are, in fact, targeting a 50 per cent growth next year on the back of the Fifa World Cup and two India-playing cricket series. Actually, for the next two years, we have 9-10 driver events one behind the other (including India-South Africa, India-England, Natwest, Asia Cup, India-Australia, VB series and Euro Cup). We see healthy growth from the hotel business as well which we started two years ago. The peripheral markets like Pakistan, Bangladesh and Sri Lanka are also expected to grow. Significant contributions will come from direct-to-home (DTH) with the new operator, Tata Sky, preparing for launch by the middle of the year.

    But isn’t it hurting to be off several cable networks like ICC in Pune?

     

    The de-activation rate is just 7-8 per cent. The fact is that the viewer wants our channels because we have a spread of content across sports. Which is why in DTH, we are charging Rs 40 per month on a 100 per cent declaration. That is the power of the brand. As for our contract with ICC, we had certain commercial demands which were not agreed upon. We have consciously sold DTH in Pune. There are 20,000 people who have bought DTH in that market. For all the hoopla about we not having cricket content, all this seems to be negotiating talk. There are short term bottlenecks, but these are taken care of by total market economics.

    So what are the goals you have set to achieve with the World Cup?

     

    We expect the strong content will provide us the handle to get our channels back on some of the cable networks where we were off and drive in higher revenues. Besides, it will help us reduce the average credit period in the market. With the World Cup, we will also start focusing in rural markets. We have packages for these operators – starting from Rs 3,000 per month. What we need to do now is sell them.

    How will you use the World Cup to drive your other football properties?

     

    We plan to make the World Cup bigger than India cricket. That, at least, is what we will strive for. The frenzy has to flow into the rest of the football properties that we have and drive in more viewership for the English Premier League (EPL) and Spanish League. The World Cup will create a bunch of new superstars who audiences will follow even after the event is over. Undoubtedly, the two leagues where these superstars will play are the EPL and the Spanish League. We hope to improve the stickiness for that kind of football as well. The big challenge for us is to exploit the World Cup in driving a new spike for football in future.
    ‘We should have marketed EPL and PHL five years back when we dominated cricket content. As market leaders, we should have used the opportunity to popularise multiple sports as drivers’

    How are you promoting and marketing the World Cup?

    Consumer interest levels are high and the World Cup offers us a brilliant marketing opportunity. On the content front, we have designed special line of programming as a build up to the event. We have already started from 13 April a 13-episode series that will bring alive the magical moments from World Cup performances of Pele, Maradona, Platini and others. Starting from 22 April, we have Fifa Marathon which profiles the past and the present stars, the teams who have and will make a difference at the World Cup.

     

    And from 3rd-24 May, we will show Fifa Preview, a series that will profile stars, coaches and also analyse each nation’s prospects against teams within their groups. Then there is a series of six half-hour programmes that will feature stories on the most surprising and shocking results in the World Cup. (Fifa Stories from 25 May-1 June).

     

    We are also doing contests around the World Cup. We have a tie up with Adidas for identifying nine kids who will be sent from India to carry the Fifa flag. We will invest heavily in hyping up the World Cup – even in pubs and public screenings. It is a big bang product for us and we will do extensive marketing around it.

    Is ESS’s entire focus now on shifting from a cricket-led to a wholesome sports network?

    A very large part of our focus is on how to develop alternative sports and generate viewership for properties like football and Premier Hockey League (PHL). The challenge is to diversify into more driver sports. Like in the US which has a love for baseball, basketball, American football and ice hockey. As our content has a wide spread of leading sports events, we have to create value for the entire network. While we are broadbasing our channels in other sports as well, we recognise the value India-playing cricket has in this country. We will continue to follow an aggressive policy of buying this cricket so that we can drive our channels to greater growth in future.

    Does that explain why ESS made a desperate bid to grab the India cricket rights from the Board of Control for Cricket in India (BCCI)?

    There was no desperate bid from us. We are not in investment mode. We made our calculations and believed we would have made a profit on the amount that we bid had we bought it at that price. Perhaps, startups like Zee Sports have their own strategies and feel that they need to be in investment phase.

    Why then did you revise your bid from $230 million (global rights including India) to $308 million and subsequently to $400 million (just for India territory)?

    Since our first bid, the rates have gone up and new revenue streams of DTH have emerged which was not there two years back when we made our estimate. Even IPTV is emerging on the horizon.

    How big is DTH today?

    With Tata Sky coming in, we will see quicker absorption of new technologies. This will expand the market size for addressability. Already, we have Dish TV claiming close to one million DTH subscribers.

    Have you concluded deals with any IPTV players?

    We are in talks with Reliance Infocomm, Bharti, MTNL and BSNL. We expect some form of IPTV to launch by the year-end.
    ‘The Chennai experiment has killed the market with just five per cent of TV homes watching pay channels. Given our Pune experience, it is ridiculous to believe that such a small TV viewing population is wanting to watch sports’

    Why do you think no headway is being made on the conditional access system (CAS) front which will speed up the rollout of digital cable TV?

    The CAS meetings have become shouting matches with the main aim being to paint the other side black. All are bothered about their own selfish interests. Nobody has a genuine industry perspective.

    What is the perspective you have?

    Unless each value chain works, the system will crumble. There is no joint interest in pushing the technology. As long as the transition is seamless, we do not have a problem. But it should not become a fiasco like in Chennai. DTH is not mandated. So why have a mandated CAS? The way we see it is that a vast majority of consumers in these CAS cities are happy in paying their cable bills for the services that they currently enjoy. There is only a small minority who want to buy less channels and reduce their cable bills. Let these customers be given a choice of migrating to CAS and buying set-top boxes to pay for the channels they want to watch. Why disturb the entire city and create blackouts?

    Aren’t broadcasters unnecessarily worried about the lack of infrastructure for the smooth rollout of CAS?

    The Chennai experiment has killed the pay-TV market. I don’t want to get into who is responsible but the fact is that we have just five per cent of TV homes watching pay channels. And given our Pune experience, it is ridiculous to believe that such a small TV viewing population is wanting to watch sports.

    Aren’t the cable operators better prepared this time for CAS rollout than in 2003?

    Well, the last mile operators are certainly more open about CAS this time because of impending threat from new technologies like DTH and IPTV. But there are other issues and the entire industry has to get together.

    Are you in support of the downlink policy?

    It is the government of India who decides the policy for the country. All we are saying is that we should know in advance what events are going to be shared with the national broadcaster so that we can work out our business model accordingly.

    Wouldn’t you prefer exclusive content which you needn’t share with Doordarshan?

    Yes, exclusivity would help drive our affiliate revenues better.

    But doesn’t it compensate with the advantage that you would have by selling advertisements for DD as well?

    The incremental ad revenue from DD may not be enough to offset the subscription revenue downside that we would have to suffer throughout the year if we are to lose exclusivity. Yes, downlinking policy is going to limit my business. But we are willing to live with it, no issue on that. All that we want is more clarity and we don’t want it with retrospective but prospective effect.

    Have you worked on minimum guarantee (MG) as a model to ramp up subscribers from cable operators?

    We have not used it as a business model across the country except in a few markets like Bihar.

    Would you support cable networks in markets where your signals have been de-activated or is this weapon blunted by the truce on the ground among the operators?

    We will definitely do all that is possible to remain the most widely distributed channel. This includes supporting new technologies, providing decoder boxes to new operators wherever we can, and funding free-to-air (FTA) headends.

    Is ESPN Plus ready for a commercial launch?

    We are toying with the idea of a third channel but have put it on experimental mode. We are yet to decide on what final shape it should take.

    What are the lessons ESS has learnt over the last few years which has seen the fragmentation of sports properties like cricket?

    We feel that we should have marketed EPL and PHL five years back when we dominated cricket content. As market leaders, we should have used the opportunity to popularise multiple sports as drivers.