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Zee Turner Ltd, the joint venture distribution company between Zee and Turner, is eyeing a revenue of Rs 10 billion this fiscal on the back of a faster growth from DTH while pay-TV income from cable TV stays strong.
In the earlier fiscal, Zee Turner had clocked Rs 7.5 billion after adding Ten Sports into the bouquet.
Regionalisation will be a big growth driver for Zee Turner. With Zee Telugu and Zee Kannada turning around, the contribution from the southern region is also set to improve.
Adding channels in the bouquet, which has a strong mix of general entertainment, movies and kids content, would form a part of Zee Turner‘s growth strategy. The plan is to have 50 channels within two years.
In an interview with Indiantelevision.com‘s Sibabrata Das, Zee Turner Ltd. chief executive officer Dinesh Jain talks about the company‘s bouquet strength across 16 genres, the efforts to fill in the gaps and the next wave of pay-TV revenue growth in a digital environment.
Excerpts:
Yes, Ten Sports has contributed but our organic growth has also been significant. I can‘t, though, comment on what our target is. But we expect to get a little under 20 per cent growth from cable TV while revenue from DTH will be at a faster pace. We, after all, have the widest bouquet with 35 channels.
Providing such a wide choice is, in fact, our biggest strength. We have presence across 16 genres and have the maximum number of movie and regional language channels. In the Hindi general entertainment channel space, Zee TV is very powerful. And we have the strongest kids content in Cartoon Network and Pogo. We are a top-of-the-mind bouquet.
Our plan, in fact, is to have 50 channels within the next two years. We may not release all the channels to all parts of the country. But they can be driver channels for the relevant market. We will increase the width and depth of our portfolio.
Yes, our revenues are not in line with the strength of the bouquet. But we are the fastest growing company today. We will be the No. 1 distribution company this fiscal.
Regionalisation is a big thing for us. We have the largest bouquet of regional channels. We have, for instance, big drivers in Zee Marathi and Zee Bangla. News is also becoming regional and in local language. Zee has launched several regional news channels.
We have set up task forces to cater to these regional portfolios. We are connecting the interiors for the regional packages and doing local trade marketing. We see big growth coming from our regional channels.
The contribution from the South has increased as our Telugu (Zee Telugu) and Kannada (Zee Kannada) language channels started delivering. But we also had a strong base there due to our English content, led by HBO, Zee Studios and Zee Cafe. We have added WB, the English movie and entertainment channel, this year.
We expect the pay-TV revenues from regional channels to look up, including the South. Zee Marathi, Zee Telugu and Zee Kannada will give us faster growth. We will also be taking our Zee News Uttar Pradesh and Zee Tamil (which will transition increasingly to a news channel) channels pay in the next 6-12 months. This will mean that all the 35 channels in our bouquet will be pay.
Do you still miss the English news genre in the bouquet after CNBC TV18 moved out? We do not have channels in genres such as infotainment, travel, English general news and English business news. There are some regional languages where we are also absent. For completing our portfolio, we would be looking at filling such gaps.
‘Regionalisation is a big thing for us. We have the largest bouquet of regional channels. We have big drivers in Zee Marathi and Zee Bangla. Zee has also launched several regional news channels‘ The government has recently come out with a Headend-In-The-Sky (HITS) policy. How do you see this impacting Zee Turner? HITS offers another great opportunity for digitisation and addressability. We expect the Telecom Regulatory Authority of India (Trai) to come out with a pricing policy for HITS. As long as the delivery platforms and addressability are similar, the pricing policy should be same.
The freeze in pricing has led to anomalies. Different channels in the same genre are priced differently because they were launched in different dates. The price freeze will not, thus, impact the channels equally.
A case in point is Zee Sports. If Zee Sports is to acquire a cricketing property paying as much as Star Cricket does, it will be at a disadvantage because of the price freeze. Launched later, Star Cricket is priced higher.
Trai, in fact, is looking at revisiting the price freeze issue. Today there is enough competition in the market for channels not to start profiteering from high prices.
No, but then there is definitely an opportunity loss. However, it is overcome by the strength of the bouquet.
We are building capabilities for the digital environment – be it IPTV, DTH, cable TV or 3G devices. India will have all models successful because it is such a huge market. We have created vertical heads separately for digital, analogue cable and commercial business 18 months back to bring more focus into these business segments.
Cable TV currently accounts for 70 per cent of the broadcasters’ pay-TV revenues. We see the industry settling at an equal ratio between analogue cable and digital platforms within two years.
Broadcasting distribution companies have entered into joint ventures like Zee Turner, MSM Discovery and Star Den. Is there scope for further consolidation?
There are still many splinter groups such as Sahara and UTV. At some stage, they may decide to align. We are looking at such opportunities and alliances.
The market is getting matured and organised. Though we are seeing the emergence of bigger MSOs (multi system operators), this will mean that the business is getting more rationalised. Bigger cable companies will look at improving bandwidth. There will be huge upsides – much like the coming together of organised retail helping FMCG companies.
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Tag: indiantelevision.com
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‘We will be the No. 1 distribution company this fiscal’ : Zee Turner chief executive officer Dinesh Jain
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‘AXN prides itself on always being a challenger brand’ : Sony Pictures Entertainment senior VP, GM Ricky Ow
These are challenging times for pan Asian broadcasters. The economic downturn has meant that ad revenue targets will not be easy to meet. And for the action-oriented broadcaster AXN, this is more so with its parent Japanese electronics major Sony scaling back as it posted its first loss in many years. Sony Pictures Entertainment (SPE), however, is looking at opportunities to snap up assets in the Asian region that would come at an attractive price.
AXN, which launched in 1998 as an Asian channel, has grown in stature and moved to the matured markets, attracting male audiences. Localisation has also worked as a strategy.
In an interview with Indiantelevision.com‘s Ashwin Pinto, Sony Pictures Entertainment (SPE) Networks Asia senior VP, GM Ricky Ow elaborates on the channel‘s brand positioning, growth, challenges and expansion plans.
Excerpts:
Parent company Sony is scaling back due to a downturn in the global economy. How is this affecting SPE Networks Asia in terms of investing more in content and channels?
SPE Networks – Asia will continue to invest in content and channels because opportunities are presenting themselves in Asia. Especially during such tough economic times, people realise the need for television as an affordable form of entertainment. With the wave of TV digitisation starting to sweep through the region, there will be opportunities for us to grab some real assets in the new digital world.
What are the challenges that pan Asian broadcasters like AXN face in these tough times?
Firstly, there remains substantial revenue leakage through piracy. Secondly, competition continues to increase with more channels and choices entering the market. As audiences become increasingly fragmented with growing competition for their attention, business plans have to remain relevant.In addition, new media offers opportunities for the brand to go beyond television – for content to be consumed anytime, anywhere, in many forms. At this time, however, all players in the industry are still in the race to find the perfect business model that will work for new media platforms.
Another challenge is that the English GEC genre is perceived to be used as a ‘snack‘ by viewers. How do you go beyond that and try to build stickiness?
It is a misconception that AXN offers ‘snack TV‘. Many of our shows are of an hour‘s length per episode and others are even two hours long. AXN programmes offer a destination to escape to. One of the reasons why we have remained as the dominant player in this genre is that we offer something different and viewers actually watch and follow, not just surf through our content.
When Sony launched AXN in India way back in 1998, it was to be an action and adventure channel for male audiences. To what extent have the objectives been achieved?
When Sony launched AXN in India back in 1998, it was the first action and adventure channel. We had set out to be the first to create such a genre, and to be the best. I think we have succeeded as we continue to offer the best today, even in the face of rising competition from channels trying to replicate AXN‘s successful model.We also wanted to offer high quality English entertainment to audiences in India as well as the rest of Asia that is growing in sophistication and affluence. We felt that a channel with unique content of distinguished quality will not only excite the top end of the market, but also markets that are as a whole more mature, with viewers that are sophisticated and well-travelled. I believe that these goals have also been achieved today.
How has AXN evolved as a brand over the years?
AXN began as a high-end proposition. It was one that targetted affluent adults as well as children from affluent households. Since then, action and adventure as a genre has in many ways extended itself to mass markets because it is a universal language. With the viewership numbers that the action and adventure genre is delivering today, AXN is definitely not a niche channel, but a unique content destination with far wider appeal than we originally thought.
‘Investments of the earlier days into on-ground events, then into original programming, and more recently into the Action Awards, have all worked out well for AXN‘
What were the challenges AXN faced in establishing the brand?
AXN was blessed to have started out when competition was not that great in the market. A brand is made up of a brand promise and product fulfilment to the consumer. For AXN, our brand promises and product fulfilment have always been very closely aligned since its early days. In a lot of cases AXN over-delivered on brand promises, and that has had a long term positive impact as the channel has won over audiences‘ loyalty and affection.The best evidence of that was seen during the ban on AXN in India some years back. Viewers missed AXN and wanted the channel back on TV. This was strong testimony that AXN has indeed done well as a brand.
Investments of the earlier days into on-ground events, then into original programming, and more recently into the Action Awards, have all worked out well for what AXN stands for.
AXN started as an Asian channel and then moved elsewhere. How far has it succeeded in this?
AXN was born in Asia and was then marketed around the world. This shows that quality channels need not always be created in the West or elsewhere and then parachuted into Asia. Sony had the belief and confidence we could launch a channel first in Asia, and then bring it around the world.We have created original content like AXN Asia‘s The Amazing Race Asia. The reality race has been one of the most difficult to produce, and yet we have done well at it. In doing so, we have achieved our goal of creating original Asian productions which are good enough to be watched around the world.
AXN Asia‘s sister channel Animax, Asia‘s anime and youth entertainment channel, has also made breakthroughs. In 2009, Animax offered content in shortened broadcast windows, via simulcast deals with Japanese studios and broadcasters. Shows like InuYasha – The Final Act and Fullmetal Alchemist Brotherhood have been broadcast within the same week as the Japanese broadcast, and Tears to Tiara in a same-time-as-Japan simulcast. This has been a big step to ensure fans and viewers catch the shows on the channel and nowhere else.
AXN and Animax were among the first channels in the region to provide mobile offerings. Animax Mobile 3G streaming service was launched about two years ago, while AXN also had mobile-based content for its top shows. A highlight of AXN‘s mobile venture include exclusive video footage which was unavailable on TV, for The Amazing Race Asia in ‘The Host‘s Diary‘ where show host Allan Wu shared his thoughts and added to the entire show viewing experience for AXN viewers.
And on the marketing front?
On the marketing front, AXN prides itself on always being a challenger brand. We continue to view AXN as a challenger and are prepared to pursue innovative and creative marketing strategies to grab attention, but without offending the cultures, sensitivities and sensibilities of each market.The ads that we have created over the years have always been outstanding, and can capture viewers‘ attention and excitement of the channel, but never offensive. We have been consistently doing so and AXN is one of the few TV networks in Asia that have pursued such aggressive marketing strategies.
In 2002-2003 AXN made a deliberate shift away from movies and focussed more on top line shows like Alias, 24. What factors prompted the move and how did this help in terms of ratings?
In 2002, AXN shifted in focus away from movies, but the channel continued to offer regular movie slots. The shift in focus was to ensure AXN had a richer variety in the programming mix that still offers action and adventure to our viewers.Back then, drama series such as 24 and Alias were not as well watched as movies, but seeing that the quality of production in such series were as good as some movies, we were confident viewers would take to the new drama series on AXN.
Indeed, movies widen the overall reach of channels. However, our reduction in movies has not affected AXN‘s reach in this case; movies continued to be part of the programming mix. The increase in drama series offerings enhanced AXN‘s connection with viewers at the top end of the market. This is difficult to measure by ratings, but there are considerable viewers that AXN reaches out to. They are opinion leaders and trend-setters, and they demand such content.
AXN‘s ability to successfully market such drama series has also contributed to greater viewer ‘stickiness‘ to the channel. While a movie is a one-off show, drama series average 13-15 episodes per season, and that has worked to keep audiences coming back to AXN.
How big a role have local shows played?
We started off with local events and progressed to producing local shows, both of which added to the overall AXN experience. In recent years, AXN has focussed on regional or international shows that India is a part of. While such regional shows are not dedicated to India alone, these offer a totally different experience to Indian audiences. We will continue to produce more of such regional shows that will include India and the rest of Asia.Local events, local shows and regional shows with local elements have all brought different types of experiences and enjoyment to Indian audiences. With India becoming an increasingly important market for everyone including SPE Networks – Asia, we expect to offer more of the three different initiatives – local events, local shows and regional shows – in time to come to provide even more connectors with AXN.
Is the localisation strategy the same across Asia?
Localisation strategies are very similar across Asia, but with some markets having more localised shows and others able to participate in the regional shows that AXN creates. In that regard, we have been able to rope all markets in, and offer the same AXN touch and feel across the region.The economic downturn has helped SPE Networks – Asia as a whole to refine our plans. It has helped us re-set our priorities, re-evaluate our templates of success, and rethink if we can do things better. The economic downturn has definitely impacted us and everyone else, but we believe we can derive a positive outcome from it by re-examining what we assumed had worked in the past, and come up with new strategies to move forward.
How has AXN fine-tuned its localisation strategy this year?
We have invested in local productions such as the AXN Action Awards, and will be looking at opportunities that can bring a very different touch in original productions that are relevant to India.In addition, we have introduced English subtitling in India to enable viewers who may not be used to some of the accents to still enjoy the shows on AXN.
What is the programming focus this year?
AXN has embarked on three major changes in 2009. Firstly, we have made aggressive efforts to introduce magic-reality programming in a big way, in India. We have brought two of the biggest magicians in the world – Criss Angel and David Blaine – to AXN viewers. These two are now household names not just in the U.S., but in Asia too. Coming up, AXN will be introducing another world-class magician in our brand new original production, called Cyril: Simply Magic.All three have been some of the most sought-after street magicians. With Cyril, his exposure in India has been limited so far, but with the upcoming production, viewers can see for themselves his brand of magic.
In addition to the three magicians, we also premiered Breaking the Magician‘s Code. Unveiling the secrets behind the illusions and tricks, the show is able to really bring in both the high-end viewers as well as a wider audience base. I have high hopes that the series will do very well in India.
A second new initiative that AXN has embarked on is the expansion of AXN‘s reality block to three-hours. The key difference here is that a large number of channels are now offering reality programming that have been successful on AXN, but audiences still recognize that we brought them the original, and continue to do so, and hence viewers are still watching AXN. Anchoring this block are good shows such as So You Think You Can Dance? and the latest reality game show WipeOut, which is produced by the same team that brought on Fear Factor.
Thirdly, we have also increased our movie slots over the weekends to offer a wider appeal to audiences and broaden the viewership base.
To what extent have programming costs risen over the past couple of years with attempts to bring in the latest shows and seasons?
AXN has always been bringing first-run and latest seasons of shows to offer the newest and best programming from the US, Europe and around the world on our channel. This is not new as it is one of the key reasons why viewers continue to tune-in to AXN.Indeed, the cost of programming has gone up over the years. But since this has been what we have been doing all along, the increased cost continues to be within our expectations.
Is new media going to play an important role for AXN in the coming two years like what it does in countries like Korea?
There is no doubt that new media will play an important role in the future. The Internet has already proven its importance with governments having won elections using the medium cleverly. The growth of mobile usage, with ubiquitous ownership of mobile phones and lines among the masses, make the mobile platform very attractive to marketers. However, we, like everyone else, are still figuring out the business model for new media platforms at this point in time.New media adoption however, differs from market to market. Infrastructure, strategies, timelines, and market forces determine the rate of new media adoption in individual markets. Korea and Japan are leading at this point in time as early adopters of new media, while smaller markets like Singapore and Hong Kong are also ahead as these are smaller markets that offer ease of policy implementation and infrastructure establishment.
We believe that there will be a lot more experimentation with new media in the next few years as the world races to find solutions to tap into new media platforms. As for India, it continues to be a volume game due to the size of the market. We are optimistic that with the right pricing, consumers will be persuaded to use new media, and because of the size of the market, the returns can still be very attractive for firms. We believe that once the necessary infrastructure is in place, there could be an explosion in new media take-up in India.
In the US, CBS opened an upscale restaurant where fans can experience the brand. Would this concept work in India and Asia?
We certainly believe such a concept can work in India and Asia. In fact, we have been previously approached to set up AXN Cafés and Animax Cafés in the region.We believe that with the right partners who have the necessary expertise, coupled with the right level of commitment they put behind our brands, such a business opportunity will prove an interesting proposition. We have had some discussions so far, but we believe we have yet to find the right partners at this point in time.
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‘Consolidation in the multiplex sector will happen when the real value of the business is captured’ : Cinemax India senior vice president business strategy Devang Sampat
Cinemax India Ltd entered into the multiplex business with a cluster approach, concentrating on Mumbai and the Maharashtra market. Running a cinema chain with 76 screens, it has a load of 40 screens in Mumbai and 18 across rest of Maharashtra.
The thrust now is to build a national footprint with focus on locations that would give it an advantage. The expansion plan is to have 300 screens over a period of three years.
Facing a slowdown, the immediate task is to add 60 screens in FY‘11 with an investment of Rs 1 billion. Cinemax will also push digital technology and expand its gaming zones.
Cinemax has plans to raise funds but is not in a hurry. Promoted by real estate developers, it has an asset bank and can leverage it to raise debt. The company has a debt of Rs 750 million and the debt to equity ratio is 1:2.
Cinemax is not keen on film distribution as it is a risky business. But it is readying to enter into film production and is waiting for the right script.
In an interview with Indiantelevision.com‘s Sibabrata Das and Ashish Mitra, Cinemax India senior vice president business strategy Devang Sampat says consolidation will take time as average occupancy needs to rise from 24 per cent to 32 per cent and profit margins improve.
Excerpts:
Cinemax had indicated earlier that it would expand its screens to 300 over a period of three years. Has the economic downturn affected the growth plans?
There is a slowdown for all multiplex operators as the mall developers are not pacing up. We will be taking our total number of screens to 100, from 74 in the year-ago period (earlier guidance was addition of 40 screens during the fiscal). We have closed down three screens in Faridabad as the mall wasn‘t taking off. But we are not revising our three-year target of 300 screens.
Are you scaling down your investments in the short run?
For the current fiscal, we are investing Rs 600 million. We will be adding 60 screens in FY‘10 and our investment requirement is Rs 1 billion.
Will you be raising funds for this?
We will take a call in December. We are not in a hurry and will raise money when we need it. With the promoters being real estate developers, we also have an asset bank which we can leverage.
Wouldn‘t you like to retire some of the high-cost debt?
We have a debt of Rs 750 million. The debt to equity ratio is 1:2. There is room to leverage and we are not facing any fund constraints.
Cinemax has concentrated its multiplexes in Mumbai and Maharashtra. Will the spread out now be more national?
Initially when we ventured into the business, we took a cluster approach in Mumbai. Now during the course of our expansion, the focus will be on going to good locations. In the multiplex business, location is king.
‘We will definitely get into film production. We are ready and are waiting for the right script. We feel this will complement our exhibition business‘
Will you look at acquisitions or you feel the industry is not ready yet for consolidation?
The industry has an average occupancy rate of 24 per cent. Unless this goes up to 32 per cent, the real numbers don‘t come up. The profit margins stay low. Consolidation will happen when the real value of the business is captured. Being real estate developers, the promoters decided to foray into multiplex as part of their retail business. The capital cost for Cinemax will, thus, be comparatively lower and the promoters have a better understanding of locations.
How could Cinemax achieve operational break-even during the quarter when film producers froze fresh Bollywood content to multiplexes?
This was primarily due to three reasons. Our presence is predominantly in Mumbai and Maharashtra. Secondly, there were some Marathi films that released during this period and they fared well at the box office. Thirdly, we own some properties, reducing the impact of the expenditure on lease rentals.We expect to clock Rs 2 billion this fiscal, up from Rs 1.54 billion a year ago.
But the first quarter turnover was weak?
We expect contributions to come from the new properties in the third and fourth quarters. The existing properties should give us a revenue of Rs 500 million in each quarter. Don‘t forget that the Khans (Salman, Shah Rukh and Aamir) will make their appearance from the third quarter onwards. As for profitability, we will maintain the same percentage as the last fiscal.
Do you see a change in the revenue mix in the near future?
We expect the Food & Beverage (F&B) segment to contribute 20-22 per cent in FY‘11, up from 18 per cent. Advertising income should go up from 8 per cent to 10 per cent. Currently, box-office collections account for 69 per cent of our total revenues and gaming zone and others six per cent.
Having entered into film distribution, is Cinemax also looking at venturing into production?
We will definitely get into film production. We are ready and are waiting for the right script. We feel this will complement our exhibition business.We distributed two films – Kismat Konnection and Singh Is Kinng. We managed to break even. But this is a risky business and we are not keen on it.
What are the digital steps Cinemax is taking?
Digital technology helps reduce piracy and enables 3D viewing. This will lead to an increase in the share of Hollywood movies released in India and, in turn, to higher ticket prices. We have introduced digital technology in 24 screens.We are also looking at augmenting our revenues from gaming. We have introduced gaming zones in six places and are planning to expand it to our other theatres.
Does Cinemax have plans to set up cinema theatres overseas?
We have no such plans.
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‘We have been profitable for the second year in succession’ Manoj Badale – Rajasthan Royals chairman and co-owner
It has been a mixed bag for the Indian Premier League (IPL) franchise Rajasthan Royals over the last couple of years. Having come out on top in the first year, the franchise failed to reach the semi-finals after the venue for the second edition shifted to South Africa.
However, Rajasthan Royals made a profit for the second year in a row. It also got Shilpa Shetty and UK-based Raj Kundra to take 12 per cent stake in it for $16.8 million (Rs 820 million), valuing the franchise at around $140 million (Rs 6.83 billion), more than double the $67 million that the owners, Emerging Media, paid for it a little over a year ago.
Rajasthan Royals has been aiming to create a differentiated brand with focus on innovation, youth, the team ethos and the ‘win from anywhere’ mantra.
While priority is to play better cricket, the off-field focus is to reach out to its local and international fan base. Building a sustainable merchandising programme is also on the agenda.
In an interview with Indiantelevision.com’s Ashwin Pinto, Rajasthan Royals chairman and co-owner Manoj Badale denies that he has picked up a majority in the franchise and talks about its growth plans.
Excerpts:
There have been reports that you have picked up a majority stake in Rajasthan Royals. Is this true?
All these reports are inaccurate. There has been no change in the shareholding structure. We are fortunate to have investors based in the UK, India and Australia. This gives us a global perspective on the decisions we take as a company.
Do you think the IPL in South Africa helped in exposing the brand globally?
The move was a great opportunity for us as well as the IPL to expand the global audience and win a lot of new fans outside of India. We learnt a great deal about the international potential of ‘Brand Rajasthan Royals’. We successfully experimented with our merchandise and the ‘Royal Turban’ and the ‘Royal Mooch’ (moustache) became synonymous with Rajasthan Royals and its fans at all the games.
Was it a logistic nightmare to shift base to a foreign land?
The move to South Africa gave us as well as the organisers only about three weeks to put together everything from scratch. But the vast majority of the work was undertaken by the IPL and IMG teams. Our work for the Rajasthan Royals was far less than theirs, although our initiatives in creating practice matches against the 2008 South African champions added to a busy workload.
The main challenges related to travel, merchandise and local marketing. We overcame these by working with local partners, and leveraging our sponsors wherever possible.
Is it true that Rajasthan Royals made a Rs 250 million profit?
We do not like to provide specific comments on our financials. However, we are happy to have been profitable for the second year in succession.
Rajasthan Royals had earlier stated that its goal was to breakeven in three years. Are you on track to better this?
Yes, we are! But we can’t rest on past performance.
‘I am not sure that any country can replicate the IPL. Matching the IPL is not a realistic one. There are too many things that are unique to India that make the IPL the success that it has become‘What activities are you planning to keep the brand alive?
We have already reached out to the UK. We played in front of 22,000 fans at Lord’s against the 2008 English 20:20 champions Middlesex. We are exploring other alliances and strategic partnerships in different geographies across the world.
In India we do fan ‘meets’ and ‘greets’ as a regular exercise throughout the year. We also sponsor the Jaipur based T20 local league called the Royals Cup. The plan is to scale these into bigger events with more participation from sponsors and fans.
Do you have any licensing and merchandising plans for this year or are you waiting for next year?
Yes, we have many. We believe that licensing and merchandising is the most unexploited area for the team, and our focus is to continue to explore strong partnerships in this regard. We hope to create a long term and sustainable merchandising programme around the team.
Our licensing and merchandising programme continues to grow and Shilpa’s presence is a huge benefit – with lots of great new ideas.
What are the key elements one needs to keep in mind when designing this?
It is important to pick a few categories that have potential in a developing market such as India. The temptation is always to do multiple deals. But we need to look for strategic partnerships with products and brands that share our brand values.
It is also important to execute well, once we have identified our focus areas. My hope is that we will see exciting partnerships in the areas of retail, apparel and gaming this year.
Shilpa Shetty and Raj Kundra have taken a 12 per cent equity stake in Rajasthan Royals. Will this help?
Through this investment, we feel that we got dual benefits at the price of one. Raj contributes business acumen and is a great addition to our board. With Shilpa’s international status and media experience, we are gaining a real advocate for our team and enhancing RR’s global brand.
It clearly expands the off-field options available to us. Overall our strategy will always be to prioritise the cricket. But off the field, we will expand our activities to reach out to our local and international fan base.
Is it true that deals can’t solely rest on the on-field performance but also on the brand attributes?
We think that our brand values are extremely differentiated. We focus on innovation, youth, the team ethos, and the ‘win from anywhere’ mantra.
This is ‘Brand Rajasthan Royals’. Our sponsors and merchandising partners have a lot to gain with that type of association. The brand needs to be built holistically and not just around on-field; it should also represent what its stands for, off-field.
How is Rajasthan Royals perceived as a brand?
What people tell me is that we are the IPL’s most loved team. This is due to our brand of cricket, our team ethos, and our emphasis on youth. People like the underdogs, which seems to be a label that we are yet to shake. I think that we are also seen as a very internationally mobile franchise.
In-stadium hospitality will be an important revenue source going forward. Has Rajasthan Royals firmed up plans in this area?
We are constantly testing, and iterating our plans. There is lots of ‘best practice’ across the world from events across all sports.
However, the right in-stadium experience has to be customised for the IPL, which has its own unique characteristics – the brevity of the match, the relatively short period of time that fans are in-stadia (but not watching the game); and the mix of demographics in different parts of the stadia. As is the case for much of our business, there is no single ‘silver bullet.’
How successful has the Rajasthan Royals been thus far in exploiting new media?It is too early to talk about success, but we are pleased with our innovation and activity levels – the e-commerce platform works well. Our work on Facebook and Twitter has yielded positive results. Our mobile communities are also excellent.What are the plans to take the reality show Cricket Star to another level this year?We’re talking to Indian and international production houses. Our ambitions with Cricket Star remain big and we are enthusiastically pursuing various broadcasting platforms.While the objective of this show is to harness the power of raw talent concerns, have been expressed that budding cricketers will focus more on T20 as it is more lucrative and give short shrift to the other two formats. What is your take on this?The objective is simply to unearth new cricketers. The economic reality of focussing on T20 is a choice that individuals need to make. Personally, I think that Test cricket still has a healthy future, if managed properly by the administrators.What other entertainment-based sports formats is Emerging Media looking at?Currently we are focussing on popular sports like cricket and soccer as we believe the market is still some time away from justifying early stage investment in other sports. We are looking at a soccer-based TV show. We will be able to share more details on this later. However, prospects for golf and tennis are promising.The English Cricket board scrapped plans for P20. How difficult will it be for the other countries to do a league that is as financially successful as the IPL?
I am not sure that any country can replicate the IPL – nor do I think they should be trying to. Each country has to look at what is best for its fan base, what parts can be exported to India, and what parts can be borrowed from other tournaments.
Moreover, it is important to have realistic objectives – and matching the IPL is not a realistic one. There are too many things that are unique to India that make the IPL the success that it has become.
Emerging Media and the other IPL franchisee owners are looking to register their trademark in different countries to protect their IPR. What is your strategy in this regard?
This is part of the framework for our IP protection. If we, as part of the IPL, have global ambitions, then we need to protect our identity, even before we reach out to foreign markets.
All teams and the IPL are globally recognised brands. We are just ensuring that we’re legally protected as well.
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”We have created a basket of Marathi channels to dominate our position in this market’ : Nikhil Sane – Zee Marathi and Zee Talkies business head
Subhash Chandra realised as early as 1999 that the next wave of Zee network’s growth would be in the regional broadcasting space. Up came a clutch of channels including Zee Marathi, Zee Bangla, Zee Punjabi and Zee Gujarati.
Chandra has cemented his leadership position in the Marathi market with the launch of a news channel, Zee 24 Taas, and a movie channel, Zee Talkies.
Following the vertical integration model, Zee has also got into the Marathi film production business.
Starting as the first private Marathi channel on 15 August 1999, the initial years were slow. With the launch of ETV Marathi in 2001, Zee Marathi, in fact, even lost its leadership position. But it was in 2005 that things paced up as Zee Marathi scaled up its distribution and programming. Reality content through shows like Saregamapa, Eka Peksha Ek and Hasya Samrat gave the channel a big boost in ratings.
In an interview with Indiantelevision.com’s Gaurav Laghate, Zee Marathi and Zee Talkies business head Nikhil Sane talks about the 10-year journey of Zee Marathi.
Excerpts:
Zee launched its Marathi general entertainment channel on 15 August 1999. How has the 10-year journey been?
Everyone was skeptical at that time about Zee’s decision to launch a Marathi channel. In Maharashtra, Hindi channels – Zee TV, Sony Entertainment TV and Star Plus – were dominating television viewership. The only available Marathi content then was on Doordarshan – that also for four hours. So launching the channel way back in 1999 was a big, big step.But wasn’t it a big advantage to be the first private Marathi channel?
In 1999, the Marathi TV industry was non-existent. So you can say that we created the Marathi TV viewing audience. What we got was a lot of talent. Maharashtra has produced ace directors, writers and actors, who supported us in this endeavour passionately. And we offered them a robust platform. So, Zee Marathi played a pivotal role in shaping the Marathi entertainment industry.What was the programming mix for the channel then?
As I said earlier, there was no scarcity of talent, but it was scattered. With our launch, people from Marathi theatre and cinema joined us. That time we were experimenting a lot. We were the first channel to launch a daily show, Abhaalmaya, at 8.30 pm. The competition was against Amaanat on Zee TV, Heena on Sony TV and Saas on Star Plus.We got a humongous response for the show. Soon after, we launched the afternoon slot with Maansi, which again got a good response from viewers.
Step by step, we increased our prime time, which at present is from 6 pm till 11 pm. We launched weekend programming, reality shows, events and even entered into film production business.
Meanwhile, we launched the news channel (Zee 24 Taas) and the Marathi movie channel (Zee Talkies) to create a basket of channels and dominate our position in this market.
When did you extend your prime time?
We had a prime time from 7.30 to 10 pm till 2006. We extended this to a four-hour band starting 7 pm. We also had hourly news bulletin, which were very popular. Later, as we launched our own news channel, we shifted news from Zee Marathi.Earlier we used to air weekend movies on Zee Marathi. But as we launched Zee Talkies, the movies were shifted and we started daily soaps from Monday-Saturday.
‘It was in 2005 really when Zee Marathi scaled up its production, distribution and programming’
You said initial years were experimental. So when did you manage to strike the right formula for growth?
We launched some very good shows in our first five years. But it was in 2005 really when Zee Marathi scaled up its production, distribution and programming. It was like a channel revamp.We created reality shows like Saregamapa (singing talent hunt), Eka Peksha Ek (dance reality show) and Hasya Samrat (comic reality show). Recently, we launched Hapta Band, a quiz-based show.
Also, we organised grand scale events like finale of reality shows, Zee Gaurav Puraskaar (awards for films and theatres) and Zee Marathi awards (viewer’s choice awards for Zee Marathi shows).
What were the milestones in programming?
We experimented with different genres. Our comedy show Hasa Chakatful saw performances from the best performers of the industry. Shriyut Gangadhar Tipre was also one hugely popular comic fiction.Among fictions, Abhaalmaya, Avantika, Asambhav, Vaadalwaat and recently launched Kulvadhu got us good viewership. Our reality shows and events also are some of the most popular properties on Marathi television.
Apart from these, we had shows devoted to literature (Pimpalpaan), poets and musicians (Nakshatranche Dene) and horror (Gahire Paani).
ETV, which launched in July 2001, emerged as a strong competitor and even surged ahead of Zee Marathi at one stage. What were the reasons?
After a fabulous three-year ride, we had a tough patch for two years. ETV Marathi launched with a very strong distribution and this impacted us. We were popular in towns, though. But after 2005, we focused on every aspect of the business.Now there is new competition from Star Pravah. While other channels like Mi Marathi and Saam Marathi have launched, they haven’t really been able to shake things up. So do you see a three-player fight in the Marathi GEC landscape?
If you see our current ratings in Maharashtra, we are only below Zee TV while outnumbering Star Plus, Colors and other national GECs. That is what our competition is. Today, Hindi viewership amounts to 26 per cent while Marathi is 20 per cent in the state. We have a lot of space to grow here. Also, competition gives advantage to viewers ultimately as they get variety. And it grows the market.You talked about entering into the film production business and have so far released six movies. How are you scaling this up?
After establishing Zee Marathi, the natural progression was to launch a movie channel. So we launched Zee Talkies. The next logical step was to enter into the film production business ourselves.We have, in a big way, led the revival of the Marathi cinema industry. So far, our movies have done good business.
We have released Saade Maade Teen, followed By De Dhakka, Galgale Nighale, Dudgus, Ek Dav Dhobi Pachaad and Gallit Gondal Dillit Mujra.
The next movie we are ready with is Hai Kai Nai Kai. We have signed five directors for three films each.
So how do you see the Marathi broadcasting space evolving?
The time ahead is surely challenging. We have to be open to change and need to continuously evolve to stay ahead of competition. And by competition I do not mean Marathi or even Hindi GEC channels. The main competition is with new media. With so much available on different platforms, attracting viewers to TV will be a challenge.From now on, the biggest question to ask ourselves would be ‘what next’. Hindi GECs will survive as their base HSM (Hindi speaking market) is very big. Innovation is the only way to keep ahead in this Marathi TV broadcasting space.
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‘Zee Studio has concrete plans to beef up its original programming’ : Sujay Kutty – Zee Studio senior VP, business head
The fight among the English movie channels is getting fiercer as new players have entered the battleground. Zee Studio has decided to go aggressive this year by upping its premiere runs on the channel. The plan is also to launch an original show every month.
The focus this year will be to grow particularly in the smaller towns. Zee Studio is also launching a wap application to take advantage of new media opportunities.
In an interview with Indiantelevision.com’s Ashwin Pinto, Zee Studio senior VP, business head Sujay Kutty talks about the challenges of the English movie broadcasting business and the channel’s growth plans.
Excerpts:
With more players joining the fray, has the English movie genre seen growth in terms of viewership and advertisers?
As of now, there are seven players in this market. With the advent of new players, the quality and variety of movies on the small screen has definitely improved.We will also see unique niches being created where you will have some channels showing big premieres and others sticking to popular titles which get ratings despite being aired many times like Terminator 2, Spiderman, Pirates Of The Caribbean.
So will you be increasing your premiere runs on the channel?
The number of premieres has grown considerably. We have 18 premieres lined up for the year with the likes of Vicky Cristina Barcelona, The Wrestler and How to Lose Friends – all close to their theatrical release.Is that the key to growing your share?
Premieres bring an element of freshness to the channel and are definitely more saleable as the films have not been exploited earlier by other channels. Also, most of the satellite premieres we pick are scheduled very close to their theatrical release which helps in ensuring a quick recall in the viewers’ minds and helps create buzz around them.But isn’t sourcing big title content difficult as market leaders Star Movies and HBO have the big studios behind them?
We buy content from all the major studios and have a great relationship with Disney, Warner and Sony. Also, we have done business with studios like Fox and NBCU in the past. Moreover, a lot of independent distributors have access to first runs. There are also cinematic gems from various festivals that we pick up.Is a trend emerging to spruce up the English movie channels with original content?
There is a gap in terms of local content being done in this genre. Zee Studio has concrete plans to beef up its original programming. We will unveil our second product in October-November. A host-based quiz show around movies is on the cards. While talks are on with a number of production houses, it’s a little too early to discuss the show.The plan is to have one show every six months. If you do it more, then the novelty can get lost. We will get into many formats except reality shows. Original content helps connect with the consumers and opens up marketing opportunities.
‘With newer players entering the markets and major studios coming up with their own channels, content availability will be a source of concern‘How successful have you been in your earlier endeavour?
As far as local programming goes, we already have Get Shorty, our short film contest for the audience. We ask aspiring filmmakers to submit their entries between 2-10 minutes in length. It is a four half-hour episode show. The filmmakers talk about their short film and why they made it. The jury includes personalities from the industry like Anurag Kashyap. Last time around 17,0000 viewers voted for what they felt was the best entry out of the 18 films that were aired.We are planning the third season for this show and it goes on air later this year. Currently, we are planning more shows with the basic aim of involving our audience.
Your sister channel Zee Cafe tried localisation but the response was mixed. What lessons have been learnt from this?
On the contrary, local productions always create talking points and an instant connect with the audience. We have got a positive response to Zee Café’s Café Mic Testing. The trick is to make the ‘homegrown’ content as interesting and unique as the shows we acquire abroad. With Café Mic Testing, we tried a unique blend of a talent hunt and a game show.But doesn’t your budget go up with local content?
It does! However there are different ways to do local content. You can create a huge programme like a GEC. For us there is no need to be extravagant and have a big budget. Our aim is to get to a specific audience.The purpose is two fold. Firstly you create affinity for the channel among viewers by showcasing homegrown talent. Secondly you build local talent as a base that can be used for the future. The ad revenue that we earn more or less take care of programming costs.
While the share of Zee Studio has gone up marginally, it is still in the fourth spot among the English movie channels. What is the gameplan to bridge the gap?
Zee Studio has been in the third spot for more than three weeks now. Our strategy focuses on initiatives that help us create direct consumer connect. This can be done through out-of-home marketing activities, SMS, mailers and, of course, our film club.We intend to partner with film societies to showcase cinemas across metropolitan cities as an extension of our movie club initiative.
In the coming times, we are also launching an application on Wap-enabled phones that will let viewers download our weekly schedules.
Tam data shows that the time spent on English movie channels has gone up slightly. Zee Studio has also grown slightly but not much. What would you say are the reasons for this?
With more channels entering the genre, a viewer has many more options to choose from. Moreover, viewers have a wider choice for entertainment that is not restricted to television alone. So the time spent is not likely to show a significant increase across any channel in the genre.Going forward, do you see viewership growth coming in from the small towns and cities or would metros be the main focus?
There is potential in the small towns and cities as well. Our subtitling speaks to this segment of audience. It is about targetting people who understand English, but have difficulty following the dialect. Subtitling helps them associate what is being said to the story. We have, thus, built our second rung base in places like Jaipur and Gujarat.What role has subtitling played in growing the channel’s reach?
We pioneered the initiative of subtitling for English films in India, starting it as early as August 2007. We realised that English is spoken very differently in different parts of the world, especially when you take into account colloquialisms, local slang and even sentence construction.Subtitles invariably aid the user in tiding over these differences and absorbing the film in its entirety. Post introduction of subtitling, our films have most definitely reached out to a larger audience base.
What is the focus area of Zee Studio this year?
This year our focus is on on-ground initiatives, Shut Up and Watch film Club (Saw) and Studio Nites, the movie song karaoke championship.Saw is aimed at taking quality cinema to the genuine movie enthusiasts across the country in the unique setting of a bookstore. Meanwhile, Studio Nites are evenings of ‘Karaoke,’ conducted at popular restaurants and clubs celebrating “music from the movies”. Here, patrons win prizes from the channel for singing along to movie soundtracks.
What are the programming initiatives you have taken in the recent past?
Over the last six months, Zee Studio has made constant efforts to bring its audience some great programming content. January saw three weekends with the telecast of High School Musical 1 and 2 and a back-to-back telecast of the two films with just one commercial break. To generate excitement around High School Musical, Zee Studio announced Music For Charity. This was an online auction of a guitar autographed by Farhan Akhtar, Luke Kenny, Shankar-Ehsaan-Loy and Vishal-Shekhar on its official website, www.zeedio.tv. High School Musical had an instant connect with the younger audience.Moreover, we created some properties keeping the audience’s needs in mind. One of these was ‘Two Timing’ where we would telecast two movies of a popular superstar back-to-back. The other is the ‘In Express Highway’ wherein a movie and its sequel are telecast back-to-back with just one break on Saturday afternoons.
From 1 April, Zee Studio moved its primetime to 9 pm following research findings that a majority of the audience tune in at 9. April also saw the introduction of Sunday Noonatics. This is a slot for light/entertaining flicks keeping the relaxed Sunday mood in mind.
What can we expect going forward?
We plan on introducing new festivals every month to give the channel a fresh and ever-changing look. This month Zee Studio will air Desi Tadka, a festival of films with an Indian connect.September will have a lot of family movies. Going forward, viewers can look out for a Woody Allen Fest, Cinematic Jewels (critically acclaimed films) and more.
In a genre that is title-driven, how big a challenge is it to build brand loyalty?
At the end of the day, content is king. Marketing initiatives go a long way in driving brand awareness – be it on-ground initiatives, radio activations, print ads, hoardings, mobile marketing. They all ensure that a channel enjoys top-of-the-mind-recall when viewers are surfing the box for English movies.Some English film channels do programming blocks for different TGs. Others do not. What are the pros and cons of this?
Programming blocks work well if one has a large library of films targeted towards each target group, absence of which results in repetition. It does help in clear communication, though, and also appointment viewing.To what extent have acquisition costs gone up in recent times with new entrants?
It all depends on what you buy, keeping in mind the RoI as well as the channel image. So the acquisition cost keeps varying every year.What are the challenges that English movie channels face in India?
With newer players entering the markets and major studios coming up with their own channels, content availability will be a source of concern. However, one has to wait and watch. -
‘We believe our prime time has more potential’ : Ashvini Yardi – Colors senior VP and head of content and creative
Colors is celebrating its first year sitting at the top of the ratings cliff. A late entrant, with 10 Hindi general entertainment channels launched before it, the Viacom18 channel climbed to the No. 1 position in 38 weeks time, enjoying the fastest ride to success with backing coming from “disruptive and differentiated” programming, strong distribution and heavy promotions.
From 81 GRPs (gross rating points) and the No 3 position in first week, Colors crossed the 100 GRP mark in its second week; 200 GRPs in the ninth; and 300 GRPs in the 32nd week.
Critics have accused the channel of pumping in huge monies behind high-cost shows. That seems to be paying off, at least for now.
Post a big bang launch with Khatron ke Khiladi, Colors programming team under the stewardship of Ashvini Yardi, former Zee TV creative head, weaved a series of daily and weekly shows that gradually built a loyal viewership base for the channel. Within nine months of launch, shows such as Balika Vadhu, Jai Shri Krishna, Uttaran and Na Aana Is Des Laado, along with non-fictions, are kicking in around 250 GRPs.
In an interview with Indiantelevision.com’s Gaurav Laghate, Colors senior VP and head of content and creative Ashvini Yardi talks about the strategy behind the programming and the channel’s plans ahead.
Excerpts:
Colors launched exactly a year back. What have been the important landmarks for you?
Well, occupying the third spot in the launch week itself, crossing the 100 GRP mark and then to finally becoming the number one channel within a span of eight months has surely been some of the milestones for us. But for me, apart from all these, it was more about meaningful programming.We created thought provoking subject-based shows like Balika Vadhu, Uttaran and Na Ana Is Des Laado. And we believe that Colors has raised the bar for quality programming, both in fiction and non-fiction shows.
But don’t you think it adds on to the audience fatigue?
Not really. On the contrary, it is good for viewers as every channel tries to come up with something different and better in quality. Overall, it gives the viewers an expanded choice.What has been Colors’ strategy behind selecting particular shows?
We knew that we were the 11th player foraying into the GEC clutter. And therefore, to break into this clutter we wanted to offer something different to viewers. However, that different element was always within the same boundary. You see, every show is different, and yet full of emotions. Look, concept or idea remains the same; what matters is the treatment.We also encouraged new talents.
But on the creative side, how do you decide on the progress of the storyline?
Generally, while a producer thinks only about the show, the channel has a holistic approach towards it. But at Colors, we strongly believe that for any show, vision has to be one person’s. And in Colors’ case, it is bound to be ours. We look after every show with the perspective of the whole channel.‘Celebrities have fitted in very well for Colors. They, as brands, blended with the channel’s property and also helped as promotional vehicles‘In that case, creative differences won’t emerge?
Well, our creative team sits with producers to discuss and chalk out everything in detail. But we do make our vision for the show very clear.And what about deadline pressures? Producers always accuse channels for changing storyline at moment’s notice and that they don’t get enough time.
For a daily soap, pressure is always there. And that is true for all channels. Even if we have a bank of episodes, there can be last moment changes. Sometimes, on realising that a particular character is getting better response, we decide to increase its length. Or for that matter, if some property is not delivering up to its potential, we may suggest for a change in the storyline or sub plots. The daily soaps are designed in such a way that you can take it to any level. That is the beauty of soaps.Precisely, that’s why some shows run for years and viewers don’t enjoy “happy endings”. What about finite shows?
We have Balaji Telefilms’ Koi Aane Ko Hai, which is a finite show and is seasonal. So it will go off air after completing its first season and will come back again. Also, keeping a bank is possible in finite shows. But a channel has to give a staple diet of fiction, non-fiction and movie content to viewers.Is the accusation true that Colors is putting in large monies for big ticket shows and spoiling the market?
That is not true. Our programming budget is not more than any other top channel. It is a perception play that we have high-cost shows because of the scale and quality we stress upon. On actual basis, the cost is on par with other shows.But you roped in stars like Akshay Kumar and Shilpa Shetty for your properties. Don’t they hike your budgets? And how important is the star value for you?
For Colors, these celebrities have fitted in very well. They, as brands, blended with the channel’s property. Akshay is known for his khiladi image, so he was the best option for Khataron Ke Khiladi.Shilpa, on the other hand, had won Big Brother in its original format at that time. So, who better than her to host Big Boss. Moreover, these shows with celebrities also helped as promotional vehicles for the channel.
Channels are adopting films into soaps. Your Jeevansathi had striking similarities with the movie Hum Dil De Chuke Sanam.
Well, people find connect. Jeevansaathi was a love story, and Indian films have tried so many plots based on love stories that there are bound to be similarities. In the beginning, because of the cast and plot of Jeevansaathi, viewers thought it is like the movie. But it changed entirely. Moreover, an idea can come from a film. But daily soaps have much more than a three-hour plot. So there is a lot more to play with.But some of the shows are not delivering. Don’t you think you should replace them like you did with four other shows?
We believe in giving every show a fair chance. If we see any potential, we go ahead with that show. Right now we are concentrating on the shows which are giving average ratings and have the potential.The four shows that we have replaced were not getting enough response, so we ended the story logically.
Now that you have a stable GRP base of 250 from programming and movies, what next?
Our aim is to continue delivering on viewer’s expectations and to consolidate the primetime. We believe our primetime has more potential than this.And what about launching the afternoon band?
As I said, there is a lot of scope in primetime; therefore, first we are taking care of this band. After that, we will get into the afternoon band. Moreover, our repeats during afternoons are getting us ratings; so we can wait for some more time before launching shows for this band.
We have also launched the Sunday morning band and are getting good response from it.Any big idea behind launching the Sunday morning band?
It is in sync with our disruptive and differentiated programming. Sunday morning was a major slot in the 90’s. It is still a time when families sit together and watch television, including kids. So we decided to design programmes for this untapped slot.Our shows Vikram aur Betaal and Shri Swaminarayan are targeted at family viewing with a focus on kids.
Also, now we have launched our weekend primetime with India’s Got Talent, Chhote Miyan season 2 and Mahaveer Hanuman. So we are on course with our plans.
Has the economic slowdown played a dampener on your budget and growth plans?
Well, we are ahead of our targets and, thus, have not curtailed any of our plans.How important is it to be in the top three in the highly competitive Hindi GEC space?
It is a cycle. It is very important to be in the top league in this game. If you are there, you can attract big chunk of revenues to invest in good shows, which ultimately gives you good ratings. -
India TV returns to NBA fold after three-month estrangement
NEW DELHI: India TV has returned to the News Broadcasters Association after three months of estrangement over the decision of the NBA Authority taking suo motu action on the telecast of a report relating to an interview by a Pakistani researcher to Reuters after the terrorist attacks in Mumbai on 26 November last year.
Following the channel’s return to the NBA, its founder-chairman Rajat Sharma will rejoin as a member of the NBA Board. The channel’s managing editor Vinod Kapri, who had tendered his resignation, returns as a member of the NBA Authority.
It is understood that though the channel was forced to pay a penalty of Rs 100,000 and run an apology scroll, India TV which had quit NBA on 19 April decided to sink differences after some members of the NBA Board – themselves broadcasters – were sympathetic and admitted the guidelines of the Board had not been followed.
NBA sources told indiantelevision.com that any viewer can complain to the respective TV channel directly about any report. The matter goes to the NBA Authority headed by Justice JS Verma only after the channel has not been able to satisfy the complainant within one week.
India TV had run a late night report in Hindi about an interview given in English to Reuters by Barhana Ali who is a researcher with the American CIA about the terrorist attack. Ali had subsequently complained to the channel that the interview had been in English to Reuters and not to the channel, and that she had been erroneously described as a CIA spy.
The channel had subsequently run a story clarifying the points made by Ali, and she was satisfied. The NBA Board had been duly informed and decided to treat the matter as closed.
However, the 9-member NBA Authority – set up by the NBA Board – decided suo motu to take up the case and is understood to have taken a decision against the channel in a hearing which reportedly did not have the quorum as required under the guidelines.
India TV is understood to have taken the decision to return in the larger interest of unity among news channels.
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‘We will fight competition with innovative content’ : Anupam Vasudev- Star India EVP marketing and communications
It’s rearguard action time at Star Plus. Edged out after a nine-year life at the top, Star Plus is making moves to shed off the “saas-bahu” image that stuck on to the channel.
What followed is a flurry of differentiated content. While Kiran Bedi played judge on social issues in Aap Ki Kachehri, matrimonial show Star Vivah gave a platform to many prospective brides and grooms.
Star Plus also experimented with shows like Paanchvi Paas that made no major impact on its ratings.
The big show now is Sach Ka Saamna, an adaptation of the bold and sensational The Moment Of Truth.
In an interview with Indiantelevision.com’s Anindita Sarkar, Star India EVP marketing and communications Anupam Vasudev talks about Star Plus’ road ahead as the channel takes up the challenge to regain its leadership position and widen the gap with its rivals.
Excerpts:
The first half of the year has really been interesting with the GEC space witnessing the rise of three strong players at the top. Does this mean the absolute end to the Star monopoly?
The game is not yet over. We had nine years of undisputed leadership and it’s been a great run for us. Look, in all categories and businesses, competition does catch up at some point of time – and they have caught up with us. In the last couple of months there have been ups and downs in the top three category, but we were never out of the game. In fact there were weeks when we did come back to the number one spot. So these things will keep happening in terms of the top three players for a while until one of them breaks away to rein the top slot singularly. We are ensuring that Star Plus is the one that breaks away from the lot to establish its leadership one more time.So how do you plan to break away from the top three league?
As you can see, there is a whole new programming that is being brought in to Star Plus. We have just launched Sach Ka Saamna in the non-fiction category. We will be launching a new fiction show, Sajan Ghar Jaana Hai, very soon. We are also firming up our fiction category further with a couple of new shows, lined up for the next two to three months.We will also continue to strengthen our existing offerings and products that have the potential to grow like iconic shows Yeh Rishta… and Bidaai and recent launches such as Mitwa and Laadli.
So we are bringing across a lot of innovative content to fight competition and ensure that we retain our leadership with consistency – and with enough gap from everyone else.
Though you have a loyal base of 200 plus GRPs coming in from fiction and non-fiction show, content like events and films are also impacting a further 30 GRPs. Does this mean that you are also banking a lot of such content to push up your GRP grades?
For a GEC channel, events and films have always been an inherent part of the programming mix, especially movies that contribute about 15 per cent to our total revenue and also help to drive in family viewership. However, the real changes that have happened in the movie sphere in the recent past is that the time gap between a movie coming to the theatre and being aired has shortened. So the effect is more. Also, movies have started getting syndicated instead of being exclusively owned. These are the two significant changes that have come into the movie business on television. But from a programming or a brand perspective, offering movies to viewers has consistently been part of our network strategy wherein our channels run movies. This includes our regional channels. So movies have always been a core element of our programming strategy.From the time you first began ruling the number one slot to now, what kind of shift in audience taste have you witnessed?
Today, the larger group of the Indian audience has got younger. Audiences have moved away from demanding regressive content to content that evokes an open belief system. Meanwhile, the market has also expanded significantly from being metro-focused to being small town focused. Market has moved up both in terms of measurement and penetration. So there are more people and players coming into the category than there were in the past. There has been an enormous growth in the regional sphere as well. All this taken together has led to a significant upgradation in the quality of content, viewership and competition, bringing in a fundamental change in the minds of the consumers.Was that the primary reason to do away with Balaji’s saas-bahu sagas?
It’s nothing to do away with. We thought that we needed fresher and younger shows coming in because a show that has run for nine years obviously needs to be refreshed. I don’t think in any part of the world a show can continue for so long. The K-series had a good run and did brilliantly for the channel, but then changes were prevalent and we responded to them.Star Plus, anyway, still continues to source a few shows like Tujh Sang… and Kis Des Mein Hai Mera Dil from Balaji and they are still a part of the producers list who work with us.
It seems whenever audience starts responding to a certain kind of show format, the other players follow suit. So is there any differentiated content actually existing?
Of course there is! Everything has to be differentiated if you want to drive in viewers.‘In Star Plus’ revenue mix, the afternoon band contributes 15-20 per cent. We plan to build up on our existing bouquet of shows‘Are social issue-based formats driving the current GEC programming?
Issue-based topics have always been played upon on television as it reflects society and further helps establish connect with the audience with relevant societal discussion points. So, it really does not mean copying content. We are not here to talk about social issues in a fashionable way, but yes everything has to have a concept that connects with the society emotionally and entertains them as well. For example, Bidaaii which is a tale of the dark skinned versus the fair skinned sisters or for that matter Laadli which reflects love for a girl child. It reflects society but is surely weaved into a concept that is contemporary to the society today.So what kind of changes have you brought in to your programming strategy?
Our shows have always been about hope, optimism and family values with a further support from a high level of romanticism. So there has not as such been any drift in our strategy. Thus, Star Plus will continue to target the women-oriented mass India audience between the age group of 18-35. Family will, of course, remain our secondary audience that will be driven in by reality shows and movies.What are you doing to beef up your afternoon band?
We are already running three shows in our afternoon band -Tujh Sang Preet Lagayi Sajna, Hamari Devrani and Star Vivah. All of them are performing quite well for the channel, driving in a lot of women audience in the afternoon band. This contributes 15-20 per cent to our total revenue. So, right now we plan to build up on our existing bouquet of shows.Can you elaborate on your marketing strategy?
Apart from the usual print, radio and television, we are getting aggressive on the digital space. Activating ideas cleverly is another very important segment that we are working upon to create hype and excitement for our various properties. On-ground activation has also become an important part of our marketing mix to create an interactive interaction with consumers that will help in attracting newer eyeballs. -
‘India is a very important part of our growth strategy’ : Marcus Luer- Total Sports Asia CEO
Total Sports Asia (TSA) has big plans in India. Though it has concentrated on soccer, golf and badminton, the specialist in personalised sport and entertainment solutions is now looking at the opportunity of getting involved with the Indian Premier League (IPL). It views the team franchises as a hot property, offering a wide spectrum of revenue streams.
Launched in India five years back, TSA has made progress in different areas like representing World Wrestling Entertainment (WWE) and organising the opening and closing ceremonies of the World Military Games. The plan is to also get involved in the high-profile, high-stakes game of cricket.
In an interview with Indiantelevision.com‘s Ashwin Pinto, Total Sports Asia CEO Marcus Luer discusses about the dynamics of the sports marketing business and the company’s growth plans.
Excerpts:
How would you describe the progress that Total Sports Asia has made since launching in India five years back?
TSA has grown from a small team in Mumbai to two fully operating offices in Mumbai and Delhi. We work across all our core business lines in India now – media rights, sponsorship, events and consulting. Over the years we have been involved in a host of different activities from the management of the World Military Games Opening and Closing Ceremonies to licensing deals for WWE. This is partially due to the nature of the Indian sports landscape and our wide range of skill sets. We are continue to explore various niche areas and are comfortable across many different sports.What will be your key areas of focus in India?
India will remain a core market for TSA and we have identified certain sports and entertainment content which will be our focus. Without giving away too much, football, badminton and golf will be an important element for us. We have also identified a variety of local events which we believe have long term potential and we are keen to develop further.In terms of revenue and business generated, how important is India vis-a-vis the rest of Asia?
I see India as a very important part of our growth strategy in the short and long term. The market has tremendous potential and we will continue to grow our presence.How does the deal with Nectar Capital benefit Total Sports Asia?
The simplest way to look at this is that Nectar Capital provides us with additional fire power in terms of funding and financial business acumen. Having a strong PE partner makes us a better company.Cricket is the dominant sport in India . How come you have not been more active in this space?
We have been involved but haven’t been that high profile. There are lots of discussions behind the scene and it is best left at this.‘There are many great value-for-money projects which deliver a strong demographic audience and RoI for the sponsors. Our involvement in the Kerala Boat Race comes to mind. This is one of the biggest tourist festivals in the country and with us getting involved, the event will be elevated to a completely new level‘Are you looking at associating with an IPL franchise to help them monetise and plan better?
Yes, I do believe that IPL franchises have great commercial potential and only very few truly maximise their commercial rights. There has been a lot of noise and too many people claiming that they represent this team or that team. We are quite happy to wait for the dust to settle and then have a smart partnership with the right franchise. The IPL is here for the long-run and so is TSA. The teams will work out pretty soon who is for real and who just talks.India will be hosting three big events over the next couple of years – Commonwealth Games, cricket World Cup and hockey World Cup. There is also the possibility of F1 race taking place. What opportunities does TSA see for itself here?
These events represent great opportunities for us. We are in different discussions on all 3-4 of them. Some opportunities relate directly to our own core services whereas in others we have teamed up with global partners who will bring in the required skill and services. We are also involved in the World Championship of Badminton in Hyderabad this year, another global event in the country.India has commonly been called a one-sport country. Will so many big ticket events taking place here change things in any manner?
Yes! I do believe that India is becoming more open to other sports, especially when there is the local hero factor. Saina Nehwal’s recent success in Badminton and the subsequent coverage in the local media shows that people love to see a winner.This was similar when Sania Mirza appeared a few years ago. With more major international events in the country and also better training facilities in other sports, India has the human capital and potential to excel in many areas.You have plans in badminton with the World Championship this August in Hyderabad. Do you feel that this could be the catalyst for viewership of this sport to grow?
Yes! As I mentioned, badminton is a core sport for us and we are excited over the prospects of this event in India. With Saina Nehwal stepping out of the shadow of the Chinese players, the timing could not have been any better. If she continues this way, we could see an Indian World Champion being crowned on home turf. I think this would put the sport on a fast track to truly make an impact. Badminton has a strong grassroots following but that has not translated into commercial success yet.How did the deal with Nirmal Lifestyle come about for the US Open?
It was a collaboration between us and the client. We were given a brief and a vision of what Nirmal was looking for and then went out to find the right partners and build a concept around it. It is truly a unique deal for all parties involved and we are confident to add more deals in this space.What are the other kinds of innovative tie ups that Total Sports Asia is looking at?
There are a host of other unique licensing deals being discussed with global recognised sports brands but it is too early to reveal.Is there more of an understanding among clients in India about how sports can be used for brand building beyond just cricket?
Yes! I do believe Indian brands appreciate that we don’t just talk about cricket when we sit in front of them but truly show them the opportunities with other sports or entertainment concepts. There are so many other great value-for-money projects which deliver a strong demographic audience and RoI for the sponsors. Our involvement in the Kerala Boat Race comes to mind. This is one of the biggest tourist festivals in the country and with us getting involved, the event will be elevated to a completely new level.You did a deal with Real Madrid for mobile content in Japan. Will this kind of a service come to India shortly with soccer growing in popularity?
We represent the Real Madrid mobile rights and many other top sporting mobile rights for India as well. Mobile content growth is directly related to the local network capabilities. Having a large customer base in India is a great starting point but the lower spectrum of bandwidth still stops ‘rich’ content from truly being consumed in India. This is just a matter of time when new technologies will make this experience available in the market.You also recently did a deal with mlogic. Is leveraging the new media space becoming more of a focus area for TSA?
We are in the process of launching our own online channel (www.totalsports.tv). This will stream live action from various events including the World Championship of Badminton in India and the US Open tennis over the internet. The service is in partnership with Octopus Media in the UK.Are you planning to work with sports bodies in India to grow sport at the grassroots level?
In general we have a more top down approach. We start with media rights, build an awareness and presence for the sport on TV, and then develop a great ‘live’ experience for the fans. We let the fans touch and feel the sport and the stars and then give the fans what they want in terms of other interaction and experiences to allow them to truly immerse themselves with their favourite sport, team or athlete. This is currently the smarter route to develop the right level of awareness and commercial interest in a sport. That does not mean grassroots is not important and needs to be nourished. I truly believe that’s where the government needs to step up and provide the necessary infrastructure and financial support. Agencies will then be able to support that effort.Does TSA have plans in the player representation area in India and Asia?
I’m sure this will be a natural process coming out of our involvement with certain sports and sectors.Apart from India, China is another key market for you. How did the Olympics impact the dynamics of the sports marketing business in that country?
There are clear signs that the event has changed the perception of sport in China forever. The local athletes have become the true heroes of the games and many more stars will come out of the young generation who watched the Games from the sideline. At the same time, the typical Olympic hang over in the commercial sector was also felt, coupled with the global recession. So several new initiatives were shelved or put on hold. Overall, sports in China will continue to grow in double digit figures and the country will continue to produce world class athletes in many disciplines. The investment in the Games will pay off over the next 10-20 years and will make China a huge force in sports globally.How do you see the current economic downturn impacting the sports marketing business in India and Asia?
The first five months of the year were difficult with a lot of negotiations slowing down or being put on hold. In the last two months we see a lot of renewed interest and discussions being revived. I believe that the corporate sector has managed to see the light at the end of the tunnel and worked out how they need to deal with the climate. Lots of projects for the later part of the year and next year are in full swing.