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  • ‘Working on an umbrella brand strategy is a good way to build a presence in the entertainment space’ : Rajesh Sawhney – Reliance Entertainment President

    ‘Working on an umbrella brand strategy is a good way to build a presence in the entertainment space’ : Rajesh Sawhney – Reliance Entertainment President

    As 2007 comes to a close, Reliance Entertainment president Rajesh Sawhney is an apt choice for our year-ending interview, not necessarily in the context of what Anil Ambani’s company has done in the broadcast space this year, but because of the expectations from industry, going forward.

     

    On the television front, the journey of being a broadcaster starts next year with the launch of two movie channels (first Hindi and later English), a logical extension from Reliance ADAG’s existing film production and distribution business. The broadcast piece will add to a list that ranges from multiplexes to movies, home video, FM radio, direct-to-home (DTH) and IPTV.

     

    On radio, the aim is to consolidate its position. It will also be active in distribution with its DTH platform coming up. Thomas Abraham and Ashwin Pinto caught up with Sawhney to find out about the plans and the kind of impact that Reliance is looking to have on the entertainment space.

     

    Excerpts:

    Firstly, 2007 was the year when Reliance Entertainment sowed the seeds for what is to come. What were the landmarks for this year?
    We are a young player only two years old. Our journey into entertainment kicked off with the Adlabs acquisition. Then we moved into radio in 2006. We started rolling it out by the end of last year. Then we moved into other ventures like Zapak, our gaming portal. From my perspective, we are still in the incubation phase and the larger consideration is that the entertainment and media industry is where telecom was five years back. The media industry will be worth $25 billion in five years time. A lot of value creation will happen in the coming five years similar to what was seen in telecom.

     

    The second big thing will be the emergence of digital entertainment. Platforms are now set. This will be a large driver.

     

    The third thing is that with the economy growing at 10 per cent, the Indian consumer is spending more and more on entertainment. The first indication of this is the multiplex boom. Now even monies spent on entertainment at home like DVD rentals, pay per view are growing.

     

    The entertainment industry is worth $ 11-12 billion out of a trillion dollar economy, which means 1 per cent of the economy. Globally it is 3 per cent. In the US, it is 5 per cent. If we take the telecom parallel, revenue is 3-4 per cent. In India it is 2.5 per cent. India has a convergence deficit in this sense. This is where the real opportunity is going forward.

     

    I see Indian players having strengths in certain verticals. Some are strong in print, others in movies while others focus on radio. Nobody is building a comprehensive brand presence across media. This strategy would allow you to capture the three per cent deficit. This is what we are chasing.

    What is the kind of impact that Reliance is hoping to have on the entertainment space across the different verticals?
    Let us take the movie industry. It is on a huge cusp of change. If you go back 10 years there were no multiplexes, no DVD formats. Home entertainment will be the next value driver for the movie industry in the coming decade. DVD and home entertainment revenues are the biggest source of revenue for Hollywood. Here it is less than 10 per cent. We are going through the first phase which is theatrical revenues. Home entertainment will be the next phase.

     

    For this you need concepts like Big Flicks which will make organised retailing possible. It will make home entertainment delivery through broadband, DTH, IPTV possible. Pay per view revenues will be created for the Indian movie industry. Content in the long tail form across different platforms will offer more choice. The companies who are preparing for this will gain big time as far as the movie industry is concerned.

     

    The second revolution happening in the Indian movie industry is on the content side. So production values have risen. Talent is getting a huge amount of value which is getting aligned to global values. Content will get value from overseas markets, home entertainment, satellite markets. A $10 million movie has become the norm. I can see a situation where $100 million movie is viable but this will take time to happen. You will see Hollywood and Bollywood collaborating more.

    How will Reliance benefit from the synergy between Reliance Communication and Reliance Entertainment?
    Reliance Communication is building distribution capabilities on mobile, DTH, IPTV and broadband platform. Reliance Entertainment is building a presence and capabilities on the content side across different verticals – content, broadcasting, themed entertainment and new media.

    A large part of your plan involves targeting the youth across different verticals. How are you going about this?
    We are a youth focussed company. This has a commercial reason. We believe that youth drives entertainment. Youth is driving the movie consumption business. India has the best youth demographic platform in the world. We are the youngest country in the world. We keep youth in mind in whatever we do whether it is radio with Big FM or making movies or Zapak.
    ‘The government should allow news and current affairs. This is why you do not have talk radio‘

    You have taken the brand name Big for your businesses like Big FM, Big Flicks. Is the aim here to convey to the consumer an idea about the size and scale of the brand?
    Unlike many companies that work with a house of brands strategy we believe that working on an umbrella brand strategy is a good way to build a presence in the entertainment space. The choice of the name is predicated on three reasons. Firstly it is simple to understand. Everyone, regardless of language, understands Big. The second reason is it is simple to communicate. A mass brand needs to be understood by everyone. And third, the brand name must give people an understanding of the scale at which we want to bring entertainment to consumers.

    How important is the broadcasting space for Reliance?
    It is very important for us. Our first investment has been in radio with Big FM. We won 145 licenses in 2006. We will take part in the next round of bidding when the government goes ahead. We are the largest radio station in the country with 40 stations. With the execution of radio we have shown a clear commitment by executing the fastest. In Delhi, Bangalore and Mumbai we have emerged as a top player. We have created a leadership position not just by the number of stations but also in the markets where they operate, including those that are entrenched. We want to consolidate our position next year.

    Radio needs to differentiate itself instead of just going after the widest lane with popular Hindi songs. Why isn’t this happening?
    I do not blame the private players for this. I blame government policy. The government should allow news and current affairs. This is why you do not have talk radio. Multiple stations should be allowed. At the moment only five to six stations are available in the Metros. The government should ensure that 30-40 stations are available. One company can run five channels in a state. The government should introduce policies to facilitate the next growth phase. Niche formats become viable if frequencies are made available at lower rates. Running a Gujarati channel at a license fee of Rs 30 crores (Rs 300 million) does not make sense in Mumbai.

    Are you also looking at online radio?
    Yes! In the West, radio is a mature industry. Online is a growth industry there. In India FM and online are coming at the same time. The biggest opportunity is in FM. It is hugely underserved India should have 10,000 FM stations. Now there are less than 300 stations. I can run stations in different languages in Mumbai with viability as long as I am allowed to do so. There is also an opportunity to serve the non resident markets.
  • ‘India can become our number one market in Asia’ : Simon Phillips – Marvel Entertainment International president

    ‘India can become our number one market in Asia’ : Simon Phillips – Marvel Entertainment International president

    Marvel Entertainment is tapping the comics business in India. Holding the rights to iconic characters like Spiderman, X-Men and Hulk, it has appointed Kids Media India (KMI) as a subsidiary of Spacetoon Media to represent its licensing, merchandising, publishing and promotional rights in the country.

    Marvel superheroes will be immediately available for licensing on a wide range of consumer products including apparel, stationery, publications, toys and games, party goods and accessories.

    In an interview with Indiantelevision.com’s Ashwin Pinto, Marvel Entertainment International president Simon Phillips talks about the company’s plans for India.

    Excerpts:

    From a commercial standpoint, which are Marvel’s top five characters?
    The number one character is Spiderman. We have had three successful movies with Sony. An animated Spiderman TV series, with 26 half-hour episodes, is scheduled to come out next year. Then there is the comic book programme.

    Our number two character is the Hulk. The TV show in the 1980s, which played globally, grew this character. A movie comes out next year.

    Our number three character is the X-Men. This is a combination property and we have made three movies with Fox. A number of animated TV shows have been made around the X-Men.

    Ironman is another character and we are putting a lot of efforts in launching it as a film. This will be the first film that Marvel Studios has done and will star Robert Downey Jr and Gwyneth Paltrow.

    What is great is that Ironman is a superhero without superhero powers. While Spiderman got his powers after being bitten by a spider and Wolverine has claws, Ironman gets his strength from a suit.

    Tony Starr is also clever and can analyse situations very well. For us, it is about the relationship between the consumer and the character. The closer it is, the more chance there is to develop characters and create a broader licensing programme.

    The great thing is that our characters are flawed, and this makes audiences identify with them. Spiderman, for instance, has financial difficulties and so he has to take a job in a pizza parlour.

    Globally, is there is a difference in the popularity of these characters?
    Each country has different characters for comic books. In Australia, Elektra is a very popular character. Jennifer Garner played her in a film.

    The great thing about Marvel is that we appeal to a broad spectrum. Since we have 5,100 characters, we expose as many of them as possible. If you are a comic book fan, you would know that the Marvel storylines are all interlinked. Thus, you have comics where Hulk meets Spiderman and others where Ironman meets Hulk and Captain America. The more comics people read, the more familiar they become with our various characters.

    Marvel’s business is divided into four operating segments – publishing, licensing, toys and film production. How much does each contribute in terms of revenues?
    The break up changes every year. For example, this year we have had three very successful movies. We started off with Ghost Rider with Nicholas Cage, which, in India alone, generated $4 million. We followed that up with Spiderman 3, which was one of the biggest movies of 2007.

    We rounded off the year with Fantastic Four: Rise of the Silver Surfer. Although our roots lie in comic book publishing, our box office presence coupled with our publishing business meant that our licensing and merchandising programme grew significantly.

    How much of Marvel’s business comes from Asia?
    The global comic market is fragmented. What you have is traditional comics, and when you go to Korea and Japan you have Manga. We are breaking into that area. If you talk about traditional comics, Marvel is number one.

    Asia is a growing market for us. Japan, the Philippines and Singapore are our top three markets. However, I see this changing over the coming years.

    How does India fare?
    We entered India late last year. We had a successful merchandising programme for Spiderman 3. We have a successful publishing programme for Spiderman in India for many years with Gotham Comics. We have also published an Indian version of Spiderman.

    What I am learning is that while the market is a niche vis-?-vis the population, in terms of numbers it is huge. I would like to think that within four years, India would be our number one market in Asia. With Spacetoons, we will be on track to achieve this goal. We have already started working with Spacetoons in the Middle East.

    For India, why did you decide to go with Spacetoon?
    We went with Turner for Spiderman 3. However, Warner has DC Comics, and so we realised that continuing the relationship would not be beneficial for either party. We did research on the intermediate market. We are happy with the work that Spacetoons does in the Middle East for us. We are impressed with how they have invested and grown that market.

    Which are the key areas being looked at for India?
    We have three areas to develop our licensing programme. These are publishing, television and films.

    As far as publishing is concerned, we will work with Gotham comics. Over the next three years, they will be developing localised, Indian content around Marvel. It is not just about publishing in English; it is also about publishing in Hindi and regional dialects. We don’t want to create an elitist view of Marvel. The characters belong to everybody.

    Our movies have worked well in India. Ironman and The Incredible Hulk are slated for release next year. Another movie called The Punisher will also be released. In 2009, Wolverine with Hugh Jackman releases. It shows the origins of this X-Man.

    We follow this with television. The great thing is two of our animated shows are being made in India. Ironman is being produced by DQ Entertainment and Wolverine by Toonz. These will complement our film offerings.

    The emerging trend for us is movies, followed by animation and then merchandising. We are able to be consistent on air, and that is why the consumer has a better relationship with our characters on a continuous basis.
    ‘We need to look at Bollywood and animation in India. We want to see how Indian storytelling can be incorporated into the Marvel world‘

    In terms of merchandising, what are the key categories being looked at?
    In India, apparel will be key. This wil include T-shirts, shorts, caps, etc. Back-to-school backpacks will also be there. But the main area for us is promotional tie-ups.

    India has challenges. Retail is fragmented. It is not as developed as it is in the UK or US. You do not have multiple stores yet. They are coming though. We have to look at the available channels and then decide what will work the best. Our aim is to develop programmes that will cater to consumers at all levels.

    We are looking forward to generating Rs 250 million in revenue from licensing in the first year. We are also keen on promotions as it will help FMCG companies cut through the clutter. For instance, two companies come out with mineral water. If one of them has the logo of Spiderman, that company gets an edge.

    In addition to Spiderman, which are the other characters well known in India?
    Hulk has a strong fan base as well. Ghost Rider was a bigger film than Shrek 3. In fact, it wasn’t far behind Pirates of The Caribbean 3. The aim is to benefit from the success of films to introduce characters to India. Then we develop merchandise and benefit also from animation shows that we will launch. Not just in India but in many other countries as well, Ironman is seen as a new character by kids. The film is a great opening for us to tell them about this character.

    Are you speaking to production houses regarding licensing your characters for film and TV?
    I haven’t looked at this yet. India has a strong animation business. I want to see Marvel find more production opportunities in India and in other countries. We need to look at Bollywood and animation in India.

    In every culture including India, you have stories of heroes. Some characters might have mystical powers. I don’t see those being too different from Marvel characters. Marvel characters live among us. Spiderman lives in New York. The X-Men characters are from San Francisco. We want to see how Indian storytelling can be incorporated into the Marvel world.

    ACK Media recently acquired Amar Chitra Katha while filmmaker Shekhar Kapur and Richard Branson did a JV last year. Is Marvel also looking at acquiring an Indian firm, which has iconic Indian characters in its portfolio?
    We would grow our business in different ways. I am always looking for the right deal, and if there are Indian characters that can enrich the Marvel portfolio, then we could consider it. But 5,100 characters give us a full portfolio.

    What do you feel about the quality of animation production available in India?
    When I see the two different types of animation shows being done for us in India, I realise that the technical quality is strong.

    I would like to see Indian companies not just being production houses but also being distributors. At the moment, they are a factory. I would like to see Indian companies come to us for licenses, develop the stories, produce the work and then distribute it globally. At the moment they are more a development resource. I would like to see them progress to a level where they become partners.

    How important are videogames globally?
    We have the biggest licensing programme of any comic book company for this category. We have multiple partners. Sega is launching the Ironman game, while Activision has the Spiderman franchise. We work across multiple platforms – PS2, PS3 Xbox, PSP, PC-based games.

    Is innovation important to keep the comics genre fresh?
    Innovation is key. Marvel recently launched the first digital comic website. You have a growing consumer base who want to own a product. It is something better than having just a printed comic which is wonderful in its own way.

    We launched virtual Marvel comics where you can read our offerings online. It is not just HTML text where you simply keep scrolling. We have created a technology whereby you zoom in on different parts of the comic.
    Key partners for Marvel include Sony for films, Sega for video games and Jakks Pacific for toys. How have these relationships evolved over the years?
    The relationships differ across the various segments. Our relationship with Sony has been for the Spiderman films. We are also doing a TV series with them. With Fox, we did the X-Men and Fantastic Four movies. Our biggest toy partner is in fact Hasbro. The innovation that Hasbro does and the marketing muscle that it puts behind our toys is important. Playskool is another partner. Our deal with Sega helps us embrace new technology and help kids and adults enjoy our offerings at new touch points. In Italy, we have a partner who makes toys, stationery and candy items. But they are not a big part of our US business.

     

    What is the revenue split for film between theatre, DVD and merchandise?
    It depends on the title. Sometimes merchandise contributes almost as much as the box office. In some markets, DVD is booming while in others it is giving way to VoD.

     

    Is Marvel nurturing ambitions of becoming a studio to be reckoned with a few years down the line?
    We have established Marvel Studios in Los Angeles. David Liezel heads it. He and his team are putting together the Ironman and Hulk movies. We want to bring the richness of our characters out into the market in a more effective manner. For Ironman, Paramount is our distribution partner, and for The Incredible Hulk, our partner is Universal.

     

    While Spiderman is a hero, The Punisher can be seen as a dark antihero. To what extent, has this affected his appeal?
    It appeals to a different audience. Spiderman is a crossover product. Everybody relates to Spiderman. The Punisher appeals to an older audience. Not every character can appeal to a universal fan base. The important thing is to remind them of the relationship they have through great content.

     

    There is also a trend in films like Spidreman 3 and Batman Begins where the superhero has a dark side. It is also getting more violent. Can we expect more of this going forward?
    Our characters reflect humanity. The dark side of Spiderman after he was infected with Venom was not an effort to do deep analysis. It is at the end of the day overcoming the dark side. Good must triumph over evil.

    In terms of violence, Marvel comics are violent. They are not U-rated comic books.

  • Swarup tells NBA to submit Code by its 31 January deadline

    NEW DELHI: The information and broadcasting ministry today said that news broadcasters must meet the deadline set by themselves for 31 January 2008 and submit their draft content code to the government.

    I&B secretary Asha Swarup stressed on the media to act fast, and buttressed her statement by saying, “There is no need for you to question the government’s intentions, but if industry does not come out with its content code the courts will do it for you.”

    This was obviously in reference to the suggestion made by the Delhi High Court recently while hearing a case on a fake sting operation that the I&B ministry could form a committee to vet and clear every sting operation before it goes on air.

    The government has no intention whatsoever for curbing the freedom of the press,, she reiterated, but adding that some regulation has to be in place and it could easily come from the NBA.

    “We have taken them very seriously and hope they will stick to the deadline, and are looking forward to the draft,” she said while addressing a panel discussion on regulatory issues at the Assocham Global Media and Entertainment Summit, Focus 2007.

    Interestingly, Swarup was reacting to a comment from Pavan Duggal, chairman, Assocham cyberlaw committee, that regulation for the media in the digital era is already there in the Information Technology Act.

    She said the this was brought to her notice for the first time and the ministry would see if amending that law would be enough to set up the regulatory system for the broadcast media.

    Duggal had pointed out in his presentation that already there are provisions (Sections 4 and 79) under the IT Act, 2004, which should govern the media in the digital environment.

    The ministry remains open to all suggestions regarding the broadcasting regulation she said, arguing that people have misunderstood the draft that the ministry had floated for public debate.

    “I wonder whether the people who have been protesting so vehemently have carefully read the draft, because in it we have said three things, ‘that the regulator will be a body outside the government, that the need is to have a uniform standard, and the third point relates to the constitution of the regulator’.

    “We are prepared to consider any document which leads to the media governing itself, and if you want to change the manner of constituting the regulator to make it independent, we are ready for any discussion even on that,” she said.

    It may be recalled that during the Digital Summit organised by indiantelevision.com earlier this year, also attended by Ofcom chairman Lord Curry, Swarup had said after discussions with him that the ministry was considering how to take lessons from Ofcom to set up an independent regulator.

    She reiterated that she had no hesitation with the media bringing in its own code, reminding the audience that the Advertising Services Council of India is an independent body and had brought in their own code “which the government adopted”, saying the same could be possible with the NBA code.

    She accepted the suggestion of Ashok Mansukhani, president, Hinduja Ventures Ltd, that in the current situation, legislation should be facilitative and light and added that taking into consideration the converged environment, the government could look at a converged bill as well for the media to include all platforms under one regulator.

    She said that she has talked individually to many top broadcasters and they have said they will draft their own code, but nothing has happened.

    “Now they have said they will do that by January 31, and we hope they will do so,” Swarup said.

  • GBN buys out New Vernon’s stake, ups holding in Jagran TV to 55%

    MUMBAI: Global Broadcast News (GBN) is buying out the 10.01 per cent stake of Mauritius-based New Vernon Private Equity Fund in Jagran TV for Rs 200 million.

    With this, GBN will hold around 55 per cent stake in Jagran TV which owns and operates Hindi language news channel IBN 7.

    Last year GBN had picked up 49 per cent in BK Fincap, the holding company of Jagran TV.

    “We will be holding around 55 per cent in Jagran TV. We have bought out the stake of New Vernon,” GBN joint managing director Sameer Manchanda tells Indiantelevision.com.

    Even as private equity fund New Vernon has exited from Jagran TV, the Gupta family who are founder-promoters, continue to hold stake in Jagran TV.

    GBN board has approved the acquisition of 13,47,231 equity shares, or 10.01 per cent, from New Vernon in Jagran TV, the company said on Monday.

    GBN plans to launch its Marathi news channel in the first quarter of 2008, says Manchanda. GBN has a 50:50 joint venture with Lokmat group for the Marathi news channel.

    “we are looking at other regional news channels but haven’t firmed up our plans yet,” adds Manchanda.

  • ‘We are keen on bringing in more channels’ : Deepak Shourie – Discovery Networks India MD

    ‘We are keen on bringing in more channels’ : Deepak Shourie – Discovery Networks India MD

    For Discovery Networks India, 2007 has been a year of growth. The company carried out a slew of local initiatives including celebrating 60 years of India’s Independence. It is also looking at airing more HD content from overseas, coming out with thematic week slots for Discovery Travel and Living, and doing local productions.

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, Discovery Networks India MD Deepak Shourie talks about the company’s eagerness to bring in more channels, address different target segments, and prepare the ground for exploiting new media.

     

    Excerpts:

    Discovery globally has been undergoing major restructuring this year. Has India been impacted?
    There is more sharing of resources happening now. We see Discovery as one brand rather than saying, for instance, that what is happening in the UK is separate from other countries.

     

    India is an important part of this brand story. We take content from other parts of the world and what we produce in India travels abroad. With India today being the flavour of the world, this of course helps.

    As cable operators digitalise their networks, do you see this as an opportunity to bring in more channels from the Discovery stable?
    We are examining this possibility. We are keen on bringing in more channels even though we realise that there is no space on analogue cable networks and getting distribution is tough. Cable operators are in a position to demand higher carriage fees due to lack of space. Digitisation will not become a complete reality unless consolidation within the cable industry happens.

    Are you satisfied at the growth of digitisation in terms of Cas and DTH?
    With direct-to-home (DTH), we are happy to see Tata Sky and Dish TV spreading their reach. But with Cas (conditional access system), what we feared would happen has happened. We have been saying that Cas can’t be mandatory; it has to be voluntary. You can’t force it down people’s throats. That is why the uptake of set top boxes (STBs) in the Cas areas has been low.

     

    Broadcasters are suffering as they have no idea as to how many homes have taken their channels. The multi-system operators (MSOs) do not have a proper billing system in place.

    We are entering a phase when we will see the launch of more English channels. How do you view this scenario of fragmentation?
    We are happy to see more channels come in. Since Discovery is a well established brand, we are not worried about our share of viewership; we have grown to be the number one international channel in the country. We have achieved the aim of making Discovery mainstream as opposed to being niche. The new channels that come in will find it difficult to build viewership.

    Discovery has boosted its reach partly due to its Hindi feed. Are you looking at regional languages?
    No! We were evaluating this possibility. However, we decided that these two languages give us enough reach. In the South, English is well respected.
    ‘For Discovery, we are seeing more male viewership. Discovery Travel and Living targets SEC A men and women. For Animal Planet, a global strategy is being worked out‘

    Has there been a change in terms of how viewers have consumed the channel over the last couple of years?
    For Discovery, we are seeing more male viewership. This is because of the kind of shows we air. We focus on things like engineering, science and cars which appeal more to men.

     

    Discovery Travel and Living targets SEC A men and women.

     

    For Animal Planet, a global strategy is being worked out. We are waiting for this.

     

    India is a young country with high aspirations. Over time we will see some movement away from entertainment television towards television that is informative. This is how growth will happen for us.

    One of Discovery’s major initiatives was celebrating 60 years of India’s independence. How has the experience been working with India’s scientific and technological community?
    Our aim was to showcase innovations at a grassroots level. It seemed a good way to show the progress India is making. We also want to encourage innovation. The technological community was very open and appreciative to what we did. Local shows play an important part in driving viewers to the channel.

    What has Discovery’s strategy been to lure in more viewership?
    Our main aim has been to ensure that the primetime is very strong. We start with the ‘Wild’ section, then move on to technology, trends and India hour.

     

    Our aim is to two-fold. Firstly during primetime, the content on our channel must be important and matter to our viewers. Our second aim is to ensure that viewers return to our channel even during non-primetime.

    What are the major properties coming up on the channel?ce?
    The biggest one is Atlas which will kick off towards the latter part of next month. This will look at different countries – India, Australia, Italy and South Africa. The show looks at different facets – be it culture, topography, etc. It has been filmed in high-definition. It looks to combine the quality of a blue-chip documentary with the detail and clarity of HD.

     

    Another property we are excited about is Into Alaska With Jeff Corwin. Alaska has America’s highest mountain; it has a great element of wilderness as well as fascinating animals. A population of less than that of New York City spreads out over an area three times the size of Texas. Jeff Corwin brings this wilderness to viewers.

     

    Race To Mars looks at the race to first reach the Red Planet by 2030. China is leading the way.

     

    Once again, America and its partners, including Canada, are thrust into a winner-take-all space race. Six individuals from Canada, the US, Russia, France and Japan are selected for this gruelling two-year mission. This crew sets out on humanity’s first expedition to another world; nothing can prepare them for the unexpected danger and staggering wonder of what they will experience.

    Abroad Discovery is focussing on the environment with its major eco green initiative. Are you looking to do something in India along these lines?
    We will air this in India. Discovery US has tied up with Leonardo DiCaprio for the eco green initiative. Once this content becomes available we will see what can be done in India to add value.

    Discovery Asia and Nokia teamed up for a filmmaker’s initiative. How has this worked out?
    It was a marketing relationship. This was for mobile filmmaking where the winner got the chance to work in Discovery Asia’s Singapore headquarters and learn about making documentaries. The initiative gave people the chance to innovate.

    How does Discovery Travel and Living reach its viewers?
    Viewers have found us. We have more SEC A viewers watching us than any other channel. Income levels are going up. Where will this money be spent? On lifestyle. That is why they will watch us for information and also entertainment.

     

    It is a difficult proposition for most channels to catch this audience. People in this segment do a lot of things during their leisure time.
    Has this helped you in roping in big advertisers?
    We have sold most of our inventory. Every lifestyle brand that launches a new product comes to Discovery Travel and Living. At the moment we are doing something for India Today Travel Plus. In the past we have done initiatives for companies like AmEx Platinum Card.

     

    Is the channel also looking at forging tie-ups with tourist resorts, tourist boards etc?
    In the past, we have done shows for states like Chattisgarh. We did a France Week recently and we did a press event at the French embassy. Sometimes, tourism boards advertise on our channel.

    Could you shed light on Discovery Travel and Living’s plans for the first quarter of next year?
    We have a couple of interesting shows lined up. There is a show called The Petra Nemcova Project; it is about this international supermodel who is grooming six other potential models. The show chronicles the real story of what it takes to be a model in New York City, without staged eliminations or contrived challenges.

     

    Six new models are brought to the biggest stage in modelling and viewers follow them from their first test shoot to the runways of New York Fashion Week.

     

    Nemcova serves as a mentor and friend to the prospective models, as they learn the trade of modelling and the business of fashion. Using her own life experiences, Petra advises the models on how to succeed and underscores the importance of having a well-rounded life.

     

    We will also premiere a show called Nigella Express. Nigella Lawson is a popular TV chef on our channel.

     

    She takes viewers on a quick and easy journey through the world of getting fabulous healthy food on the table fast. It is the sort of food viewers can cook fast around the clock, any day of the week, to fit whatever amount of time is available. Starting with everyone’s everyday nightmare of what to eat for dinner, to getting entire banquets on the table in less than 30 minutes, this is a series that will resonate with everyone struggling with hurried, time-squeezed, modern life.

     

    We are also looking at a couple of Indian productions.
    The channel is doing thematic weeks. Could you elaborate on this?
    These run from Monday to Friday at 9-10 pm. It allows us to showcase special programming for viewers. This also works for advertisers as they can sponsor a particular week’s programme. During this quarter, we are doing a lot of country-specific programmes, looking at the adventure spots and opportunities for tourism and travel.

     

    Abroad, Discovery has looked to expand through new media. What plans are there in India to tap into mobile and internet?
    Both of these are under review. Global strategies are being worked out for them. It will be a different ballgame as the mobile screen is small; it will complement traditional TV viewing as it is good for snippets of news, music and sports.
  • ‘Challenge is to scale up the production slate’ : Ravi Gupta – Mukta Arts CEO

    ‘Challenge is to scale up the production slate’ : Ravi Gupta – Mukta Arts CEO

     Subhash Ghai-promoted Mukta Arts has churned out several blockbusters in the past. But it has had to wait till 2006-07 to cross Rs 1 billion in turnover, dwarfing its earlier best performance of Rs 511.63 million in 2004-05.

    The plan now is to increase its production bandwidth and quickly build a large library. As part of this script, Mukta Arts has acquired a 50.01 per cent stake in Manish Goswami’s (who runs a TV content company Siddhant Cinevision) start-up movie company Red Carpet Films. A three-movie distribution deal has also been stitched with Eros for Rs 730 million.

    In an interview with Indiantelevision.com’s Sibabrata Das, Mukta Arts CEO says the company is set to produce 10 films a year by 2010 and create a talent pool from its film institute Whistling Woods International before it starts playing the real big game.

    Excerpts:

    How has Mukta Arts been able to hit record revenues in 2006-07?
    We had a 12-movie satellite telecast rights deal with Zee Cinema. The total size of the transaction is Rs 220 million; we got Rs 180 million in the fiscal 2006-07. We also sold the five-year home video rights to Shemaroo Entertainment for Rs 32.5 million. But there are other reasons for our strong performance in the fiscal. We released four movies in the year – Shaadi se pehle, 36 China Town, Apne sapna money money and Khanna and Iyer.

    Mukta Arts has a basket of 26 movies. Will we see the revenue rub-off from the remaining 14 movies even in 2007-08?
    The library will come up for renewals in different periods. We expect the total earning potential of the fully amortised library of 26 movies to be upward of Rs 400 million in every five-year window.This will come from re-issue rights of satellite, direct-to-home (DTH), cable, home video, terrestrial TV and other electronic media rights. It will add to our bottomline and our turnover. But the challenge is to scale up the production slate and build a larger library in quick speed.

    Which is why Mukta Arts acquired a 50.01 per cent stake in start-up company Red Carpet Films?
    The idea is to increase the bandwidth of our production capability. We bought the stake in the newly started movie company at par value. Though Red Carpet Films has not produced any movie so far, it has a distribution deal in place with Eros; it will also have Eros financing four mid-budget movies.

    Manish Goswami already runs a successful TV content company. We expect Red Carpet Films to produce at least four movies a year. We will have another source to ramp up our production. We hope to have a film project every quarter through Red Carpet Films. We are also talking to other potential filmmakers for projects.

    Are you creating divisions inside Mukta Arts to produce movies for different segments?
    Mukta Arts will produce big budget films. Mukta Searchlight will make movies for niche audiences while Malpix will be engaged in regional language films. The segmentation approach is necessary since these are films having distinct identity. We expect to step up our production to 10 films a year. This should be further ramped up including movies produced to release directly on digital format.

    But 2007-08 doesn’t look like a scale up year for Mukta Arts?
    We should be having four films in the year. We have already released Good Boy Bad Boy. While Bombay to Bangkok will be on 18 January, Black & White (directed by Subhash Ghai) will release on 7 March. The Marathi movie will also get reflected in the year. Cycle Kick may come up in the fiscal but Right yaa Wrong will get into the next financial year. We are also producing Yuvraaj (Rs 400 million budget film directed by Ghai) which is slated for release in 2008-09.

    The acceleration in producing more movies will be possible once we build an infrastructure for it. Our long term vision is to create a backward integration into education which will drive up talent pool. We expect to benefit from the talent that will get created at Whistling Woods International.
    ‘You can’t lock in stars and star directors. The model works with younger talent; lock them at an early phase‘

    Are you widening the base of Whistling Woods International?
    We plan to franchise it beyond the mother campus. We are looking at other key production centres like Bangalore, Hyderabad and Chennai. We also plan to take it overseas like Dubai Media City, South Africa and Nigeria.

    Exhibition contributes to 34 per cent of the company’s revenues. Will this go up this year?
    We do bookings for PVR (all theatres), Adlabs (north), Fun City (north) and Wave Cinema. We also distribute 6-7 movies every year.

    Why did you then get into a deal with Eros for distributing three of Mukta Arts’ films?
    We will get paid Rs 730 million and Eros will have the distribution rights for five years. It made business sense for us as we were getting a higher amount.

    Many film production houses have gone in for long term deals with stars and directors. Why has Mukta Arts stayed out of it?
    There are only limited number of stars and star directors. Besides, we also don’t believe that this is the best way forward. You can’t lock in stars. The model works with younger talent; lock them at an early phase.

    Why did Mukta Arts sell out to Adlabs and exit from the digital cinema joint venture?
    Adlabs bought out our 50 per cent stake in the joint venture company, Mukta Adlabs Digital Exhibition. We realised that there is no standardisation in the marketplace. Globally, there is no technology which meets industry standards. We felt that if we were betting on the wrong technology, it could be a high risk business and our investments would go down the drain.

    Does Mukta Arts have a digital plan?
    We are learning how to create and repurpose content for digital media. We are also launching two websites – bollywoodmoviemax.com which will have digital downloads and indianfilmtrade.com. Both are on the testing stage.

    Mukta Arts had floated a subsidiary for TV production. Is there any move to energise this company?
    Mukta Telemedia is developing concepts. We are open to TV but the hurdle is that the IPR stays with broadcasters. We want to retain IPR.
     
    Why did Mukta Arts not pick up equity in Dubai-based Arab Venture Corporation?
    We had the option in the Dubai-based company which was launching a channel but decided against it. We took it up as a turnkey project.
     
    Mukta Arts had a movie production deal with Zee. Is it being extended?
    It was a single project deal. We have released Khanna and Iyer (featuring talent from Zee’s Cinestar Ki Khoj) and there is no plan yet to do more movies for Zee.
     
    Do you see movie producers holding on to rights rather than selling them for a longer period as other forms of exploitation like direct-to-home (DTH) open up?
    The number of DTH subscribers are too limited now. It will take a few more years to grow. We don’t want to deny ourselves the revenues by holding on to the rights. We lock ourselves into five-year deals like we recently did with Zee.
  • ‘Ten Sports’ distribution is open for negotiations’ : Gurjeev Singh Kapoor – Set Discovery head

    ‘Ten Sports’ distribution is open for negotiations’ : Gurjeev Singh Kapoor – Set Discovery head

    Riding high on the ICC World Cup, Set Discovery reaped a harvest of $120 million (around Rs 4.8 billion) in 2006-07.

    The challenges, though, are stiff this year as flagship Hindi general entertainment channel Sony TV is floundering. But direct-to-home (DTH) revenues will start kicking in substantially as subscribers have doubled. And the cricket play is not over yet.

    The One Alliance, Set Discovery’s brand, has recently added three news channels from TV Today including Hindi market leader Aaj Tak. It is also planning to form regional bouquets with presence in Tamil, Telugu and Bengali markets.

    In an interview with Indiantelevision.com’s Sibabrata Das, Set Discovery head Gurjeev Singh Kapoor speaks about the distribution company’s interests in bidding for Ten Sports and HBO as they come up for grabs while chalking out its expansion plans.

    Excerpts:

    Will Set Discovery manage to retain its last fiscal revenue of $120 million in a year where it doesn’t have strong cricketing properties?
    I wouldn’t like to comment on the revenue front. But we would surpass it this fiscal, thanks to DTH (direct-to-home) where the numbers have doubled. We are also close to signing up with Reliance ADAG and Bharti Airtel’s upcoming DTH ventures. We have done IPTV deals with players like IOL Broadband, HFCL and Aksh Optifibre. And don’t forget that Ten Sports had a lineup of live cricket telecast.

    But Ten Sports admits that not having India cricket will affect their ad revenues this fiscal. Won’t this same logic extend to distribution?
    Ten Sports is a good sporting channel for distribution. Though it doesn’t have live India playing content this fiscal, we could capitalise on other cricket as it was exclusive. Having no India cricket may affect advertising. But our experience shows that distribution profits if there is live and exclusive content on the channel. Besides, Ten Sports has WWE which is a good property for distribution.

    Will Ten Sports not slip out of The One Alliance after the term ends in March 2008, particularly after Zee has taken a 50 per cent stake in the sports channel?
    Ten Sports’ distribution is open again for negotiations, despite Zee having taken a 50 per cent stake. The channel strategically helped us in pushing our bouquet and with the ICC World Cup, we had back to back cricketing properties. We gained from the ‘synergy effect.’ We are going to bid for it again. The distribution is up for grabs.

    Why didn’t Sony bid for the ICC World Cup, if it is crucial to have a cricketing property to push distribution bouquets?
    Our experience shows that on the distribution revenue front, it is always good to have 2-3 boards if you are getting live and exclusive cricket. We, undoubtedly, gained in subscription revenue because of the World Cup. But it is also true that we couldn’t encash on smaller markets because the World Cup is a largely shared property. We had to share with Doordarshan the India and other important big matches.

    Which is why Sony bid and took the New Zealand cricket board?
    Our cricket story will not stop there. We are looking at cricketing properties that make business sense for us. The thought process is that we will bid for IPL and other boards that come up for renewals.
    ‘We are actively seeking a regional presence. We are looking at having Tamil, Telugu and Bengali channels‘

    Sony was in talks to distribute Neo Sports. Did it fail because Neo was asking for very high minimum guarantees?
    We couldn’t agree on the commercial terms. Though Neo has the BCCI rights to international cricket played in India, matches will have to be shared with DD. We felt the asking price was on the higher side.

    Set Disocery has recently signed a pact with TV Today Network to distribute Aaj Tak, Headlines Today and Tej. Will Aaj Tak help you to push Sony TV, which has weakened its position, and Sab TV in the Hindi heartland?
    It will complement our two Hindi general entertainment channels. But more than that, it will open up the Hindi news channels to go pay. Star News and Zee News are virtually free. As Aaj Tak is the No. 1 in its genre, cable operators will now have to understand that Hindi news channels are also pay. Already NDTV India is planning to go pay.

    Our bouquet will have pay channels in every genre. We already had NDTV as the leading English news channel; and with Aaj Tak, we will now have the leader in the Hindi news segment.

    How much of an upside do you see in revenue terms?
    The only way we can ask for more revenues from cable operators is by expanding our content. As we are adding the three TV Today news channels, we are hiking our second bouquet price from Rs 58 to Rs 65. We have a 40-month deal with TV Today which extends across all distribution platforms – cable, DTH, IPTV.

    Is The One Alliance planning to add more channels?
    We will be pitching for English movie channel HBO as its distribution deal with Zee Turner comes up for renewal early next year.

    What about forming regional bouquets?
    We are actively seeking a regional presence. We are eagerly looking at having Tamil, Telugu and Bengali channels. While Andhra Pradesh has an estimated 11 million cable households, in case of Tamil Nadu it is 10 million and West Bengal five million. Even if we manage to convert 50 per cent of that, that is a lot of pay revenues. Kerala is not on our radar as even popular channel Surya is free-to-air.

    Along with the regional channels, we can push our national bouquet more aggressively into these markets.

    Will more existing channels go pay as carriage fee shoots up?
    Several existing channels are looking to go pay fast. Carriage or placement fee is going to shoot up and up as cable networks have no frequency available. Between Star, Set Discovery, Zee Turner and ESPN Star Sports, there are about 70 pay channels. So where is the space on analogue cable. Bandwidth is going to be a big problem for everybody to handle.

    The telecom regulatory authority of India (Trai) has asked for a la carte pricing from broadcasters in non-Cas (conditional access system) areas. Do you see this contributing to more carriage fee?
    If the tariff order sails through, Trai will actually be promoting carriage as a concept. The multi-system operators will charge for carrying the channels while we have to offer them on an a la carte basis.

    Why has Sony moved the Tdsat (Telecom Disputes Redressal and Settlement Tribunal) against the Trai tariff order for non-Cas areas?
    We have two points of contention. Even if broadcasters offer channels on a la carte basis, how do we get paid for the exact number of our subscribers? The other reason is that we will have to reduce the rates of our channels for non-Cas areas. In Cas areas we do so but are compensated in a way because there is exact declaration of subscribers.

    And for whose benefit is this a la carte rate for? How the hell does the consumer benefit as technology won’t allow for a la carte choice of channels without a set-top box?

    If the Trai tariff order for non-Cas areas goes through, it will be a disaster for the broadcasters. It will send bad signals to a new channel wanting to come to India.
    Aren’t broadcasters also unhappy with the progress of Cas?
    For the first time, all of us came under one roof to foster Cas. But what we realised is that MSOs were in a way curbed by the last mile operators who did not want Cas.

    We are concerned about the low penetration of set-top boxes. There was the T20 World Cup on ESPN Star Sports, India won the championship, and it was live and exclusive. How in a Cas market, there was no big upside? This defeats the purpose of Cas and leads to a lot of questions.

    Besides, Trai came out with a particular reporting format, but we haven’t got anything of that from the MSOs. We have no choice but to knock at the doors of Trai. We want the sector regulator to intervene.
    Why aren’t broadcasters joining hands with MSOs to market for set-top box penetration?
    We are willing but the MSOs have internal problems. The last mile operators see a bigger threat from digital cable rather than DTH.

     

    How do you see new entrants impacting the market?
    Competition is healthy for everybody so long as the new MSOs can invest in technology and have financial stability. If cable monopolies are attacked in towns, it means more choice for customers and more revenues for us.
  • ‘Sports broadcast ad market to grow to Rs 7 billion this year’ : Rukin Kizilbash – Taj Television India GM

    ‘Sports broadcast ad market to grow to Rs 7 billion this year’ : Rukin Kizilbash – Taj Television India GM

    It has been a busy and somewhat testing time for Ten Sports. Last year Zee took a 50 per cent stake in its parent Taj Television while this year the channel has had to make do without any India cricket showcase. As a result, it has had to push other properties.

     

    Additionally, a plethora of cricket rights that it holds come up for bidding in the coming months. Indiantelevision.com’s Sibabrata Das and Ashwin Pinto caught up with Taj Television India GM Rukin Kizilbash to find out more.

     

    Excerpts:

    How has not having India cricket this year impacted Ten Sports?
    It has impacted us quite a bit. It is a fact of life that things are not as smooth without India cricket. For each India series you make in the region of Rs 700 million to Rs 1 billion. Last year, Ten Sports had one series. The year before, there were two.

     

    However our reach and GRPs have not been impacted. This is in part due to WWE (wrestling). Our reach is at 30 per cent.

     

    Next year should be better though as we will have India’s tour of Zimbabwe and Sri Lanka.

    But wouldn’t it be a crucial phase for Ten Sports as two prime properties – Pakistan and Sri Lanka boards – come up for bids next year?
    It will be a crucial 12 months for us as the rights for Pakistan, Sri Lanka and West Indies come up for renewal. But we expect to renew our contracts.

    Will the acquisition price for these rights shoot up with Sony back in the race and the others showing hunger to pocket more cricket properties?
    I don’t think that the acquisition price will shoot up drastically. India, after all, visits them just once in four years. So when you buy board rights, you basically buy one India tour. It is not like the ICC events where India always participates.
    Why is it that you recently bought the South Africa rights for just one year?
    We got the rights for South Africa and Zimbabwe for one year. We will hopefully get these rights for five years once the current period gets over. India visits South Africa in 2010.

    Is cricket saturated in terms of ad rates?
    No! We believe that the spot rate can keep going up. To give you a parallel, in the US a 30-second spot for the Super Bowl sells for $2.5 million. For us it sounds unbelievable but in the US clients like Budweiser and Microsoft are willing to spend $25 million on one match. They create campaigns just for that event. An India series costs $4 million to sponsor. So there is room to grow.

     

    We sold the India Pakistan series last year for Rs 350,000 for a 10-second spot. I believe that ESPN Star Sports sold the final of the T20 World Cup for Rs 750,000 per 10 seconds. The next India versus Pakistan series could see spots sold for Rs 500,000 per 10 seconds – or even more. Advertisers realise that India cricket is the only way to reach the entire country at one shot. Even the highest rated soap does not reach the entire country. Its primary audience is the Hindi belt.

    Which is why the sports broadcasting market is going to see ad revenue growth this year?
    We expect the sports broadcast ad market to be in the region of approximately Rs 7 billion this year, up from Rs 4.5 billion a year ago.

    Industry estimates Ten Sports’ ad revenue to be around Rs 600-700 million this year. Is this true?
    I can’t comment on our revenue figures.

    In terms of rates, how do India cricket series stack up
    against each other?
    India versus Pakistan would be number one, followed by the series against Australia. A series against South Africa would be third. Clients need India cricket to create a big bang. Also a lot of the ad rates depend on when a series is held. Is it coinciding with the summer season or Diwali?

    To what extent did T20 rejuvenate cricket?
    It turned the sport upside down. It is certainly worth a lot more from an advertisers perspective than a 50 over ODI. The ratings for the T20 World Cup were double what you got for the India Australia ODI series. There is a lot more viewer retention as it lasts for just three hours. The instant cricket that T20 offers fits in with today’s lifestyle.
    ‘IPL and ICL will not get in each other’s way. One initiative is from the governing body, while the other is from a private player trying to boost the game’s popularity and reach. They can co-exist‘

    Have ratings gone up for other sports?
    Not substantially. There has been some growth though for tennis, soccer. Moto GP has also shown a decent jump. We have gone from maybe 0.2 to 0.4.

    And what about ad rates?
    We are seeing a surge in football. When we telecast the World Cup in 2002, we got an ad revenue of $2.5 million. We believe ESPN Star Sports got around $8.5 million this World Cup.

     

    The ad revenue you get from a non-India series like Australia versus South Africa is probably about the same as what you make for a season of Uefa Champions League.

    How do you view the opportunities for broadcasters to grow other sports in India?
    The opportunities are there for other sports to grow. Soccer, hockey, tennis are doing quite well, which we are trying to develop. Having said that, Indian cricket drives the sports broadcasting space. The challenge is to take the other sports on par with India cricket.

     

    We have to figure out how to deliver more TRPs and revenues from these sports. India will evolve from being a one sports nation but it will take time – and a lot of marketing effort from sports broadcasters to push these properties.

    Can you offer an example of a non cricket sports event that has grown through nurturing?
    A good example of nurturing is the soccer World Cup. The response it got last year surpassed all expectations.

     

    When EPL first started airing in India not many people were familiar with it. It has developed over the years due to sustained coverage. We will be doing the same with our properties including motorsports.

    What marketing innovations are being done by Ten Sports to push these events?
    We are doing an On Tour innovation. This is a six-month on-air promotion and the sponsors are Tata Sky, Idea and McDonalds. We take four contest winners each month for a different event. We started off in September with WWE in Paris. In October we took them to Kuala Lumpur for the MotoGP. This month is the Uefa Champions League and next month is Sri Lanka Cricket.

     

    In January, we will be featuring South Africa cricket. In February, there will be horse racing in Dubai. And we are marketing them in different ways.

    Do you see Olympics becoming bigger in India this time?
    I would rather say that the Olympics as an event was bigger in the 1970s and 1980s compared to now. For next year I have heard that ESPN is looking to air it, besides DD. If that happens then the event will get a bigger marketing push that usual. Still the fact that Indian participation in the Olympics as well as performance is limited means that interest will accordingly be limited.

    What are the rights you have recently bagged?
    We have bought the soccer rights to the Dutch and French leagues. We believe that if we nurture them they can over the next three years reach the status of EPL.

     

    In terms of upcoming rights, the Australian Open tennis Grand Slam rights are currently being bid for. Wimbledon rights come up next year.

    There is a trend of sports broadcasters doing long-term deals with a few clients. Is Ten Sports examining this route?
    No! We prefer to do yearly deals as we know exactly what is on our calendar. Also if you do a long-term deal, you do not know what the ad rates will be the next year and the year after that. You could be under-selling.

     

    Another issue is that if I say lock in Pepsi for three years, then I exclude Coca-Cola and who knows? Maybe next year Coca Cola ups their marketing budget and launches three new products. I miss out on that action. With long-term deals you run the risk of ticking off companies by blocking them completely off the channel. These companies will then be more than happy to hop on to a rival channel.

    How do you see the ICL and IPL faring?
    ICL will rock. At the moment there is some uncertainty as it is a new format. But once it starts, it will catch on in a big way. You have established names, good production values, good stadium facilities. There will be Bollywood glamour. So it will be a fun experience for the family.

     

    While it is early for me to say anything about IPL, I don’t think that they will get in each other’s way. One initiative is from the governing body while the other is from a private player trying to boost the game’s popularity and reach. They can co-exist.

    After acquiring stake, why did Zee decide to sell ads through Ten Sports for its own sports channel?
    We already have a dedicated ad sales team in place. We are selling ICL for them. We are selling it on air while they are selling it on-ground. Sometimes we package some of Zee Sports’ properties along with our channel. At other times like for Indian soccer, it is done separately.

     

    It also depends on the client. If say someone like an LG is spending Rs 10 million, he may want to split it between the two channels. So we work out a package. We have products that Zee Sports does not have and vice versa. So it helps us sell better. It is a joint effort in terms of sales.

    Are you looking at organising a sports event at a
    grassroots level?
    Yes! We are working with Zee. We have identified three sports and we are deciding how to go about things. We might create an event from scratch or we might associate with an existing one and take it to another level. Zee is working with soccer. ESPN is working with hockey. We too are looking at a sport.

    In terms of other sports, do you see soccer or hockey
    becoming a number two sport?
    It is difficult to say which will come out on top. Hockey has picked up with our recent win and the whole Chak De spirit. Unfortunately, we are not playing in the Champions Trophy. Hockey has had its ups and downs. In terms of soccer, the Champions League is taking off. Both sports will depend on how India fares at them. But currently, soccer is bigger than hockey.

    How is Ten Sports gearing up for new media? And is marketing on the mobile going to go beyond just SMS?
    We are planning to do this next year. We are talking with Idea and Reliance in terms of how to take this forward. We are looking for a bigger platform.

    You did a film innovation last year where you aired
    sports films. Are you planning more of the same?
    Absolutely! We are planning to have the next batch soon. It is a question of getting sports movies. We are currently showing a series Simply the Best. Each episode looks at a great sports person like Sir Donald Bradman, Jesse Owens. Mohammed Ali, Sachin Tendulkar.

    Is a one-sport channel like a Golf channel economically
    viable with new distribution platforms like direct-to-home emerging?
    I think that a couple of years down the line it will be. When DTH reaches 5 million homes, you will see niche channels dedicated to topics like cooking, golf, travel and action adventure coming up.

  • IBN 7 to add power backups to avoid future blackouts

    NEW DELHI: IBN 7, the 24/7 Hindi news channel, is building at least two power backup systems to avoid the unprecedented crash it suffered for two hours on 25 November during the afternoon hours.

    Company sources say that there was a half an hour power failure, but the two backup power supply units also did not support the power needs, and as a result, the main control room crashed.

    Though the power returned after 30 minutes, technical fault developed in the CR and it went completely on the blink for almost two hours.

    Now at least two more power backups are being set up, sources said.

    There has been some losses due to no-show of advertisements slated to be aired during that period, but company officials said they are confident of making up for that and make good for the advertisers.

    Otherwise, there has been no damage to the systems or the archives, sources told Indiantelevision.com

  • ‘Teenage audiences are hard fish to catch’ : Orion Ross- Turner Entertainment VP creative and original content

    ‘Teenage audiences are hard fish to catch’ : Orion Ross- Turner Entertainment VP creative and original content

    Turner is looking to take localisation efforts for its kids channels to the next level. It has announced a slew of five locally produced shows which will air on Pogo while two will be on Cartoon Network.

    Turner also wants to expand associations with more local production houses as the talent pool in India is huge.

    Indiantelevision.com’s Ashwin Pinto caught up with Turner Entertainment VP creative and original content Orion Ross to find out more about Turner’s plans in India.

    Excerpts:

    The aim this year is to take local efforts to the next level. How is this being done?
    We are building on the successes that we have had over the past few years. We are trying to do more shows. We started in 2004 with 50 hours of original production on Pogo. We have built it steadily every year. Today we have reached critical mass where we are able to announce the launch of seven shows. This is an exciting milestone for us as what was a trickle earlier turned into a stream and then a flood.
     

    What is the ratio between international and locally produced content that you are looking at?
    It is important to have a strong variety. Krishna works as does Harry Potter. Tom and Jerry works as does M.A.D. I don’t want to talk about percentages but conceptually it is a mixture of both on the channels.

    We are putting Ben 10 into the premiere 6 pm slot on Cartoon Network. This is the after school must see TV slot. M.A.D. and Skatoony are on Sunday mornings.

    I don’t think that the number of hours is an important metric. What matters is what are the key destinations that people know your channel for? What are the flagships of your brand?

    Pogo has to have Harry Potter and M.A.D. These are the two pillars of the brand. Cartoon Network has to have Krishna and Ben 10.

    Could you shed light on the production values and budgets of these shows?
    I can’t talk about budgets. However, we probably spend more on M.A.D. than what channels might spend on a throwaway soap opera. This is because we want M.A.D. to be repeatable.

    It repeats really well. In the first season we found that the repeat episodes had more ratings than the premiere. So M.A.D. has built up its audience. We invested a lot into this production to ensure that each episode has a lot of content. It takes more time to shoot. It has to be well researched.

    Before every series we do a full workshop where we go and try out 20 theme ideas. We build all the stuff to see what it looks like. So before we go into production we make sure that it will actually work. Our per half hour cost is pretty high. Ben 10, for instance, is a combination of an international style with anime touches.

    Is Turner looking at taking a stake in an Indian production company?
    We are happy with how things are working out for us. We get to pick the right production company for a project. We want to start with the idea and then follow it wherever it takes us.

    There are some companies that are better suited to some ideas than to others. We like the flexibility of being able to pick a la carte.

    With which Indian production houses does Turner have tie ups with?
    Miditech has done a couple of shows with us including Galli Galli Sim Sim. We are working with Endemol India on the finale of the Pogo Amazing Kids Awards. Contiloe is doing Cumballa Investigation Agency. DJ Creations is doing Sunaaina for us.

    We are also really happy to be working with Siddhartha Basu and Synergy Adlabs on FAQ. For the science show they bring a lot of expertise to actually making educational science shows.

    Before you give the go ahead to a local concept, what are the key things you look for?
    We look for a show that has never been done before in a certain manner – something that is innovative and will connect with our audiences. We have a close relationship with our audience in terms of research and focus groups. We do a lot of studies like New Generations to try and really understand what kids do all day, and what is really important to them.

    We talk to mothers. We get a lot of mail. So we are informed by all of this. What we would do from a local concept point of view is that when someone comes to us with an idea, we ask is it right for the channels? Does it fit our brand? Is it positive, optimistic, of global standard, and off-centre?

    We want everything we make in India to be world class. M.A.D. is a show that can be comfortably compared to any kids show on any channel anywhere in the world. If we get a good idea, it turns into a creative development process. This is about finding the right writers, production company, right graphic designers if required, the right people to build game show mechanisms. Every show has a different kind of gestation process.

    You mentioned the importance of innovation. Could you give examples of this from the new slate?
    Cumballa Investigation Agency is a mystery whodunit show. There has not been a kids show like this one – five kids solving mysteries. People look at kids television and throw in a lot of magical stuff like magic lamps. They tend to have genies. While there is a place for that, the thing about our show is that it is more hard-hitting and naturalistic. An idea earlier one was that an alien would arrive.

    But we decided against doing X-Files kind of show. We are not going to do magic lamps, genies. This show takes kids and mystery solving more seriously.

    This doesn’t make it any less exciting. There are still these quirky stories that happen. While we like to have a lot of fun, Pogo takes its audience seriously. We never talk down to kids. We figure that it is better to treat kids a little bit older than they are – as opposed to the other way around.

    The worst thing you can do is talk to a 14-year-old like an eight year old. It is always better to err on the side of being too smart.

    As far as M.A.D. is concerned, people have been doing arts and crafts shows on children’s television for five decades. However, nobody has done it in the way that Rob has. He has brought a lot to the table in terms of his own take on things. Nobody has incorporated music, art and dance together. The idea that every show has a dance number is very Indian.

    M.A.D. is an Indian take on the format. It hasn’t been tried anywhere else in the world but it works well here. With Skatoony for the first time you have kids and cartoons in one show.

    Skatoony is a unique concept in that it fuses live action and animation. How does this work?
    We shoot the game show round first with the kids. It is pretty straightforward to work with from a production standpoint. It is real game play and the kids are competing. All the questions are written in advance. We have cartoons on the set. There is some post production work involved.

    Galli Galli Sim Sim looks to strike a balance between entertainment and education. Is this going to be an important focus area for you going forward?
    Yes! The second season has just kicked off. We are committed to the project for five years. It is an ambitious project about getting an educational message to pre-schoolers out onto as many platforms as possible. It is on Cartoon Network, Pogo, DD.

    We also have an outreach programme so that it even travels to places where people do not have television. It is a different project form your regular TV show. It is about benefiting all kids and making pre-schoolers better prepared for school and life.

    It is a challenge to reach all kids with one show. There are many diverse socio-economic backgrounds. But the thing about this show is that despite the gritty message, it is also a lot of fun. It has to be both educational and entertaining at the same time. Otherwise, neither mission works.
    Will locally produced shows also travel to other markets like the US?
    The format of M.A.D. can travel. Cumballa Investigation Agency is a format that can work really well. We will launch our local animation projects in the future. Those will also travel well overseas.

    Does localisation play an important role across Asia?
    Our focus is on animation in the other Asian markets. We are looking at doing Skatoony in other markets. It is a good way to get kids closer to the Cartoon Network brand. We have an animation development programme across Asia.

    So we are doing animation series in Thailand, Australia, Taiwan, Korea, Japan and Hong Kong. We focus on animation across the region as there is so much talent. We also feel that if there is a really funny guy in say Thailand who comes up with a cartoon, then it will travel really well. We have a lot of shows in the early development stages.

    How much of your revenue goes back into original productions?
    I cannot talk about numbers. However, original productions are not cheap to do. The money does not come out of some magic box. It is based on the expectation that it will drive our business.

    Are you also looking at making original films?
    We are looking at some long form projects on Pogo like having a movie-of-the-month kind of concept. We wouldn’t rule out making films.
    ‘Our focus is on animation in the other Asian markets. It is a good way to get kids closer to the Cartoon Network brand. We have an animation development programme across Asia‘

    How do you see the kids genre evolving over the next couple of years in India?
    In India, the situation is acute in that kids are watching what grown ups watch. 85 per cent of kids viewing in the age group of 4-14 goes on to non kids channels. Obviously, the 15 per cent that we get can grow.

    As the market matures and with the different players in the kids market working together, we can grow the genre. That is why we welcome competition. Having investment and attention focussed on this sector not just by us but also by other players will benefit everybody in the long run.

    One challenge is that with youth channels now launching, the upper age of your audiences may migrate. How do you see things panning out?
    I know that one of these channels is planning to send their fans into space. 35 per cent of our audience is over 14 years of age. But our core audience is still 4-14 years. We think that teenage audiences are very hard to capture. They are constantly on the move. Music channels are finding out just how tough it is to capture this audience.

    Teens watch less television. They are more engaged with doing other activities. They socialise more. Their studies become more intense. They have less time for entertainment. So good luck to channels chasing this audience segment. They are very hard fish to catch. They will not necessarily sit and watch a linear network.
    What plans do you have to exploit new media platforms?
    As broadband penetration grows in the country, more content will become available online through streaming. Our on demand services will grow.

    We already have a number of mobile content deals. Short cartoons are a perfect packet for the mobile. Sending a fan a sentimental cartoon on his/her mobile is a great way to forge closer connect. It is important for us to get people to experience our brands in as many ways as possible.

    But it is not just high tech stuff. Our theme parks are coming up outside Delhi. This is another platform. With M.A.D. we have a publishing deal. Fans can get books and learn how Rob does all his stuff.

    		  

    When is the theme park coming up and are attractions modelled after characters and shows like what Disney is doing?
    The Pogo park is launching early next year. There will be attractions based on shows. Disney is the grand daddy of all theme parks. Our parks will be a little bit different, but fans will experience our brands up close and personal in this environment.