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Tag: high

  • High valuations to drive consolidation in print media

    MUMBAI: Print media is riding on high valuations and will witness a wave of consolidation over the next few years, investment experts said on Tuesday at a seminar in Mumbai organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).
     
     

    Armed with capital, major players will target new markets and even try to expand through acquisitions. A case in point: Deccan Chronicle has expanded to Chennai and hiked its stake in The Asian Age after raising money through an initial public offering (IPO).
     
     

    “As print media companies have access to more capital and aim at new editions, competitive pressure will build up for the established players to protect their own turf,” said Ernst & Young associate director Mukesh Jain while speaking at the seminar on “Future of Print Media.”

    The new generation of entrepreneurs will also push for change. And as private equity investors and new shareholders come in, there will be a big change in the way the businesses are run today.

    “High market valuations of the larger players will lead to consolidation in the sector. They will go national or even merge in some areas with the smaller regional companies. We will also see larger companies selling some of their brands to the smaller players,” said ICICI Securities vice president Ravi Sardana.

    The print sector is highly fragmented but has a high growth potential as only 20 per cent of the Indian population read newspapers. The topline growth could be between 10-15 per cent. “With business process outsourcing (BPO) and other sectors growing, new readership will be added and the print sector can only go forward,” Sardana said.

    The market is under-penetrated and print publications have scope to widen their reach. “Advertising on print will grow. Besides, print will play a bigger role than television,” said Citigroup Ventures director PR Srinivasan. On the negative side, however, costs like newsprint are global while the sector can’t generate global ad or subscription rates.

    The dynamics of the business is changing. There is now pressure due to competition to increase circulation. Earlier any increase in circulation by the established players was related to ability to increase advertising.

    “Print media needs significant capital to build businesses as competition is increasing,” said Ambit Finance managing director Ashok Wadhwa.

    Speaking on the occasion, GW Capital fund manager Vikram Narula said cash flows from established properties would be pumped into growth projects because of growth opportunities in India. Unlike the other developed markets like the US, this could harm large and stable cash flows, he added.

  • Longer battery life beats high end mobile technology: TNS study

    MUMBAI: While the development of mobile devices is characterised by the rapid development of advanced new features and technologies and the convergence of voice, data and video functionality into a single device, a new study by a the global market-information provider TNS reveals that what users of mobile phones, PDAs and laptops want most of all in the third quarter of 2005 is long battery life.

     
     

    The TNS Global Tech Insight study was undertaken to uncover what will drive consumer demand for mobile devices in the future, as well as benchmarking use of and interest in technologies and applications such as 3G, mobile data, mobile TV and mobile gaming.

    Across the 15 countries surveyed between July and August 2005, the study pointed out that two out of every three mobile-device users selected ‘two-days of battery life during active use’ as a highly important feature of a converged mobile device.

    Reaffirming the fact that that insufficient battery life is still a real ‘pain point’ for consumers today, concern about using up battery power is one of the top reasons why consumers do not use games, music and TV applications on their mobiles more frequently.

    Across all countries, almost half of the respondents say a ‘high resolution camera and video camera’ (48 per cent) and ’20 gigabytes of memory’ (47 per cent), are also highly important features to incorporate in an ideal converged device of the future.

    In China, expansive storage in fact tops the list of desired mobile features ahead of battery life, with one in every two consumers in the PRC opting for ’20 gigabytes of memory’ as a highly important feature. Of the six Asia Pacific countries included in the survey, other top priorities include Internet telephony (Japan and China) and superior gaming graphics (China).

    In India, interestingly the top three most desired features are two days of battery live during active usage (55 per cent), Internet telephone for cheaper VOIP calls (55 per cent) and surround sound speakers for high quality audio (43 per cent).

    As well as looking at features, the results also provide a wealth of insights into which mobile features and applications are currently being used:
     
     

    Findings from 2005 Global Tech Insight study –

    Built-in camera

    Some of the world’s most frequent users of cameras built into mobile phones reside in Asia Pacific, with the proportion of mobile-phone owners using handset cameras at least once per week being 61 per cent in Korea, 42 per cent in Japan and 39 per cent in Hong Kong.

    In India, 8 per cent of mobile phone users report using their phone’s camera at least once a week. By contrast, only 21 per cent of mobile users in the United States use mobile-phone cameras at least once per week, which reflects the fact that handsets sold in America are much less likely to feature a built-in camera.

    However, India stands out in the global PDA usage. Out of the total PDA users, only 16 per cent claim that they do not have a camera in comparison to other countries where majority does not have a camera feature in their PDAs. The spread amongst the PDA users is well defined in India. Twenty two per cent use it daily, while 22 per cent use it weekly but not daily and 23 per cent use the camera function less than once in a week.

    MMS

    Just as taking photographs with mobile phones is popular, so too is sending them by MMS, with 46 per cent of mobile users interviewed stating they send pictures and photos. Although mostly used the feature less than once a week, sending photos and pictures via MMS is highest in Japan (80 per cent), with Korea (66 per cent) also registering strong MMS penetration.

    However, the study also reveals that opaque pricing plans are a significant barrier to increasing MMS usage. In Hong Kong and Korea, 23 per cent and 22 per cent of mobile users respectively cite a lack of knowing how much it would cost as a reason not to use MMS. Other barriers cited by mobile users are ‘photo and video quality’ (22 per cent globally) and interoperability problems (15 per cent globally). Within the Asia Pacific region, key barriers include the time taken to send (Korea), perceived complexity (Hong Kong), the need to register (China and Hong Kong) and lack of awareness of MMS functionality (China and New Zealand).

    One of the top reasons for not using MMS in India was expensive charges as cited by 60 per cent of respondents. In the Indian metros, contrary to the popular assumption, majority of the respondents (69 per cent) do not even own a phone that supports sending or receiving of pictures / photos by MMS functions and merely five per cent use the MMS functions daily. While only seven per cent use the camera on their mobile phones for photography.

    TNS Technology regional director Hanis Harun comments: “Following the launch of Apple’s new Rokr iTunes-enabled phone and with a flood of other new converged mobile devices anticipated to be launched in the coming months prior to the Christmas rush, new innovation in mobile technology is once again a hotly contested issue among manufacturers, operators and high street retailers. The market is again preparing itself for a period of intense competition to create the new ‘must-have’ device and build market share.”

    Harun stated that the road to convergence was characterised by a rush to embed ever more sophisticated new technologies and functions into the mobile device. What is being often overlooked is that all of these advanced features require more power to operate, and that battery technology has not quite kept up with the rate of advancement in other areas.

    Concludes Harun, “In fact, long battery life ranks higher than any specific technology or feature in terms of the consumer wish list. The industry would be well advised to take heed of this, and to ensure that practicality and usability is not unduly sacrificed amid the rush to build ever more complex converged devices.”

  • Philips high on marketing; turnover target Rs 12 billion

    MUMBAI: For the consumer electronics division of Phillips Electronics India the going has been pretty strong. The company states that it expects its turnover from the consumer electronics division to reach Rs 12 billion this year. This is double what was achieved a couple of years ago.
     
     

    Speaking at a media briefing this afternoon Phillips Electronics India executive director and sernior VP consumer electronics D Shivakumar said,”This year we celebrate 75 years of existence. As far as colour television sets are concerned we are number five. Previously we were at number eight. What is peculiar here is that prices have been dropping every year. The challenge therefore is to build up in scale in order to achieve success. In fact, the value of the overall colour television set market in India has fallen by six per cent. So far this year growth has been flat. However, the market for flat colour TV sets has grown. We have experienced growth of over 100 per cent here in the past year.”
     
     

    DVDs, home theatre are emerging markets: In this scenario it is imperative that new products are found to create new markets. Phillips has done exactly that. Shivakumar points out that through innovative price points i.e. for less than Rs 4,000 one can buy a Phillips DVD player. Last year the company sold 500,000 DVD players. This year it expects to sell 800,000 players.

    “What has worked in our favour is the fact that theatre ticket prices have risen steadily. For the family the DVD is a more economical option. Now an important market that we are seeking to grow is the home theatre market. That and the DVD mean that you do not have to keep visiting the cinema to have the big screen experience. This I would like to point out was non existent a couple of years ago. While 17,000 home theatre units were sold last year this year we expect to sell 60,000 units.”

    Marketing budget nearly doubles to Rs 600 million: Speaking to Indiantelevision.com Phillips Electronics marketing director Suresh Sukmaran points that the allocation of the company towards marketing activities is up to Rs 600 million this year from around Rs 350 million last year. This year Phillips underwent a change in its global marketing strategy. Earlier the tagline was Let’s Make Things Better. Now the tagline is Sense And Simplicity. The aim is to convey the message that the company’s are easy to use and are also built keeping the requirements of the consumer in mind. The earlier tagline put more emphasis on new technologies that were coming out.

    In India the first phase of marketing was conducted in June and July. Basically it used the television and outdoors. The widescreen plasma TV sets and LCD sets which are priced from Rs 40,000 to Rs 300,000 were pushed. The communication spoke about the widescreen aspect of the sets. After all most movies are shot in the widescreen format and on a conventional TV set you have black bars appearing on the top and bottom of the screen. However, the company states that it has no plans to hire a brand ambassador. The second phase of marketing kicks off later this month.

    In the coming months, a key marketing activity for Phillips not just in India but globally will revolve around next year’s soccer World Cup in Germany. Phillips is one of the sponsors which gives it exclusivity to the event. In India it has already started activity in Kerala, which is one of the states that is passionate about the sport. It has started now to coincide with the Onam Festival. Basically the promotion offers trade partners and consumers the chance to win tickets to the semi final and final games. However Sukumaran states that cricket is too expensive a property for the company to be associated with.

  • World peace, digital gizmos high on young Asians’ agenda: Synovate

    MUMBAI: Today’s young Asians are multi-tasking, interactive and digitally driven consumers, it was revealed by a study titled – Young Asians – which was conducted by Synovate.
    The study was conducted in conjunction with MSN, MTV and Yahoo!, and was conducted across Asian eight markets.

    Synovate director of media research (Asia Pacific) Steve Garton said that the survey, a first for the region, threw the door wide open on the lives of Young Asians aged eight to 24, exposing their spending habits, favourite brands, dreams and aspirations.

     

    “The survey provides an essential ‘finger on the pulse’ of what defines Young Asians today. A consumption crazy, aspirational, driven generation, they are money-focussed yet moral, school is important and success everything. Their favourite food is fast, favourite drink is soft and preferred birthday gift a mobile phone,” he added.

     
     
    The study found that while Young Asians start off wanting to be doctors, by the time they hit 15 the desire for money develops and the career of choice becomes a business owner.
    Their preferred sports to play are badminton and basketball/ netball; while basketball and soccer are the sports of choice for watching or reading.

     
     
    Garton said that pester power is alive and strong with eight in 10 Young Asians influencing family shopping for soft drinks and snacks, three quarters influencing the family visit for fast food and six in 10 influencing the TV channel watched when sharing the viewing.

    “However, it’s not all sport and shopping. Today’s Young Asians worry about the future ahead and what being an adult may hold for them. A secure job is the number one concern about growing up for 19 per cent of Young Asians, while 16 per cent worry about being financially stable and 9 per cent worry about adult responsibilities,” said Garton.

    The study revealed that there was a sense of excitement about adult life though, with 16 per cent looking forward to the prospect of having a family, 15 per cent ready to be independent and influential and 9 per cent eager to enjoy adult activities like drinking, traveling and having sex!!

    A cliché that has graced the lips of many a politician and beauty queen still holds true for Young Asians, 18 per cent of whom voted world peace as the number one change they would make to the world. A further 16 per cent are aspiring activists, wanting to change social problems like drugs and corruption.

    “But don’t be fooled by this altruistic bunch, for 15 per cent of Young Asians named ‘themselves’ as the one thing they would change about the world, wanting to be more popular, better looking, or simply famous,” Garton said.

    The Internet and digital technology is fundamental to Young Asian lives, fuelling their desire to stay connected and central to their interaction with peers. Sixty two per cent have their own mobile phone, 45 per cent have their own desktop computer and half of 12 to 24 years olds name the Internet as the most helpful medium for product and service information over TV (32 per cent) and newspapers (10 per cent).

    “While listening to their MP3 players (owned by 23 per cent of respondents) you’ll find Young Asians searching the web for information, emailing, downloading entertainment and interacting with their friends, and games, online. And this trend will grow, with one third of Young Asians indicating that they expect to be spending more time on the Internet next year compared to this year,” he said.

    MTV Networks Asia Pacific president Frank Brown was pleased to note that the results identified MTV as the channel attracting the highest Young Asian viewership. “Besides audience numbers, this study reconfirmed MTV’s leadership and influence among Asian youth and young adults,” Brown said.

    “This Young Asians study helps keep MTV on the on the cutting edge of youth multimedia, with up-to-date insights on the most influential young Asians who lead their peers and are continually at the forefront of technology adoption,” he added.

    MSN Asia regional trade marketing manager Sally IP said that the Young Asians survey provided a unique insight into the extent to which digital technology had affected the lives of the world’s first generation of people to grow up with the Internet as an integral part of everyday life.

    “A rare glimpse into the life and times of today’s digital generation, Young Asians shows just how extensively digital technology and the Internet have affected their habits and become central to keeping in touch with their friends and the world,” she said.

    Yahoo! Hong Kong head of sales Ivy Wong said, “The results of Young Asians show that teenagers rely heavily on the Internet for product and information sourcing. This reinforces the Internet as essential media for marketers who wish to reach out to the affluent group of potential.”

    “To talk to today’s youth you need to communicate interactively and using online surveys enabled us to do just that. Internet portals provide a comprehensive tool for reaching the connected Young Asian audience, ensuring our message was heard and responded to,” she added.

    The study included a segment of Young Asians with the highest household incomes across the region that could be linked with the respected Synovate PAX study of affluent Asian adults.

    “Linking the income levels of affluent Young Asians with the Synovate PAX study provides the regions’ first seamless picture of high-end consumption and product ownership from youth through to adulthood, giving rich insights into the changing patterns of consumption throughout people’s lives,” Garton said.

  • Animation high on Frames’ agenda

    MUMBAI: The Indian animation industry is currently growing at the CAGR of 30 per cent. Kids channels are likely to explode with more players and result in quick growth and big revenues, as nearly one third of India’s population is below the age of 15. There are tremendous business opportunities in the areas of co-production, content acquisition and sales, licensing, merchandising etc with Indian animation and Game Production houses.

    Keeping this scenario in mind, FICCI Frames has an entire track dedicated to animation and gaming.
     

    Indian Animation Sector lately is receiving attention span of the world. The industry, so far, troubled with high investments, lack of trained manpower and stiff competition from Asian counterparts, has suddenly become the center of attraction for mature markets like US and Canada.
     
     

    The various sessions scheduled are:

        CO-production in Animation: A win- win Game
        Project and Schedule Management in Animation & Gaming
        Marketing & Distribution of Animated Content & Games
        Master Class I: Script Writing for Animation
        Master Class II: Making of SFX Movie

    Top honchos from animation sector like Electronic Arts, Asia president Jon Nierman, Stewart & Wall Entertainment, Australia’s Richard Stewart, DI Group, LLC, USA’s Craig Mumma, VES, USA co-chair and director Tim McGovern, Electronic Arts GM- Asean Christopher Thompson, Cinnamon, UK’s Chris Rice, Toon Boom Animations Inc, Canada CEO Joan Vogelesang and Electronic Arts Music, Asia director- market research and development Michael McCabe amongst others will discuss the nuances of this very promising sector.

    To recognise the excellence in the animation industry, FICCI has instituted, FICCI BAF (Best Animated FRAMES) awards. BAF Awards has received global attention and acceptance with participation from countries like UK, USA, Canada, Singapore, Denmark, Netherlands, Germany, Ireland, Hong Kong, Australia, Egypt, France, Italy, Thailand, Korea etc. The awards will be presented by none other than Barrie Osborne, Producer – Lord of the Rings, Matrix, Face off etc.

    With its commitment to develop the Indian Animation Industry, FICCI strongly believes that soon Indian Studios would churn out their own properties to be distributed in the Global Market. As per Industry estimates the global animation industry is expected to boom to $ 70 billion by 2005. India is currently getting a small share of the huge animation pie, which is estimated to grow around $1.57 billion by 2005.

    “If you think that’s enough, you ain’t seen nothing”, promises FICCI officials.