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  • ‘India is among CNN’s top 3 markets in Asia Pacific’ : CNN International VP ad sales news William Hsu

    ‘India is among CNN’s top 3 markets in Asia Pacific’ : CNN International VP ad sales news William Hsu

    CNN is banking on India to boost its ad revenue this year as the international news outfit hunts for fast-growing economies in a downturn environment.

     

    CNN expects a 10 per cent growth from the Asia Pacific region. India, away from recession, will grow the fastest this year as the news network plans to tap into more clients. .The target is to keep posting 20 per cent growth over the next couple of years as Indian companies go global.

     

    The recession has affected CNN the least as it tweaked its strategy. The news network built a 360 degree solution around TV and the Internet. The focus on digital, which makes up 20 per cent of CNN‘s revenues, also helped CNN to combat the global downturn.

     

    CNN is growing its India content. Eye On India is ready for launch and CNN is dedicating a lot of its daily news output towards Indian business, which will be aired across the world.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, CNN International VP ad sales news William Hsu talks about how the global news network has insulated itself from recession and how it plans to grow its business in India.

     

     

    Excerpts:

    Which are the key markets for CNN and how has the Asia Pacific region been faring for the global news network?
    CNN has grown in the region and 30 per cent of its revenue is coming from the Asia Pacific region, up from 25 per cent three years back.

     

    The top three markets are Korea, Southeast Asia and India. Over the past decade, CNN has been growing at about 11 per cent compounded a year.

     

    The recession has affected us the least. We had a good digital product; and we deal with government entities – whether it is investment or tourism. Governments actually spend more money during a recession to stimulate growth.

    So what targets have been set for the year?
    We expect 10 per cent growth from the Asia Pacific region. India will grow the fastest this year in terms of revenue and getting in more clients. We expect 20 per cent growth from India over the next couple of years, up from 17 per cent.

     

    North Asia‘s contribution in terms of Korea, China, Taiwan and Hong Kong will still be the most.

    CNN International has seen profit growth for the past seven quarters. What factors have contributed towards this?
    We have a strong distribution revenue stream. This insulates us in terms of a recession. Another driver has been new media. Internet advertising has grown quite a lot.

     

    One of the biggest opportunities is our CNN branded portfolio. You might think of us as a TV channel; I think of CNN as being a news provider. We have a TV channel. And we have the largest news site in the world. We have just launched a series of mobile products starting with the iphone, ipad and Android 3.0 in the US. There is an opportunity to build the 360 degree solution. The challenge is how fast advertisers will embrace this.

    But did you have to tweak your strategy during the downturn?
    One of the things we did was that we anticipated the recession before it happened. Throughout 2007, we expected something to happen without knowing when. This allowed us to tweak our strategy. We approached more governments. We built up a 360 degree solution around TV and the Internet.

    How has CNN been able to broad base its revenue stream as it is key for any broadcaster to survive in a difficult global economy?
    From a product base, I just mentioned three of them – and they are all growing. Internet and mobile are experiencing fast growth, which is good. Incidentally, new media contributes 20 per cent of CNN‘s revenues.
    ‘The Asia Pacific region accounts for 30 per cent of CNN’s revenues, up from 25 per cent three years back. CNN expects to post a 10 per cent growth from the region, with India growing the fastest‘

    Does that give you an advantage in India?
    In terms of an advertiser base, we are focusing on Asian companies that are expanding internationally. Suzlon is an example. We are also looking to work with Just Dial which has just launched in the US. Essar is another company that is expanding its global footprint. We are tapping a wave of Indian companies that are going overseas.

    Even global clients are increasingly preferring local news channels. Does this pose a challenge to CNN?
    No! We deal with corporate branding; our clients are high end corporates.

     

    If you look at the type of advertising on news channels here, I don‘t think that a company like Rolex would want to advertise in that environment. The quality is dodgy. A Rolex watch will cost as much as a car here. Would they be in an exclusive group with CNN International or would they rather be with the mass targeted brands?

     

    There is a certain purity that CNN International offers. My TG is that top three per cent of India‘s population. They are internationally focused; they are very well traveled; they do business overseas frequently. I tell clients that this is my profile. Which channel do you think this TG is watching in India?

    News channels in India are struggling as the ad pie is not growing against the backdrop of Hindi general entertainment channels (GECs) and sports. How do you see things shaping up here?
    I don‘t look at the general news channels as competitors. The market is totally saturated; there should be consolidation. In any case, sport is the most attractive genre on cable TV anywhere in the world.

     

    Our focus rests on international advertising. I bring a platform to an Indian company which is looking to promote itself overseas. We have around 20 Indian advertisers with us. And we aim to grow this.

    Have the ad categories grown for CNN over the last couple of years beyond just tourism?
    Travel covers airlines and hotels, but we have gone much beyond that. We have clients like Rolex, Nokia and Longines. We have quite a few companies from the Middle East. Banks also advertise on CNN.

     

    Our USP is that we are pervasive. We are on Internet devices, television homes and hotels. Many news channels may have a strong distribution. But how many of them also have a strong website? How many can rank No. 1 on ipad downloads? We are in a good position.

    So you approach advertisers across platforms?
    Yes! One of the benefits is that it allows an advertiser to constantly engage with the consumer. In the morning, the consumers drive to office. In the office, they use the Internet. During the tea break, they use their mobile phones. Then when they go back home and watch us on TV. We follow the consumers everywhere.

    Could you give me examples of integrated solutions?
    Cartier advertises with us on the net and the TV. They were the first advertisers on the ipad.

    What work has CNN done online?
    We have invested in social media. For any story, you have five different social media links which you can send to a friend. You can also follow a report on Twitter. We push citizen journalism through i-report. This has been integrated into television news.

     

    A great example of that is Iran. The student protests happened six months ago. The government sealed all access to Iran for journalists. What we did was have citizens do filming and reporting for us.

     

    On a platform basis, we invest heavily on the mobile. We have CNN mobile Web which allows you to surf a mobile version of CNN. Then we have iphone, ipad apps and Android. That is where our consumers are digitally. The itunes interface is its own marketing platform.

    What is the strategy in terms of lifestyle content?
    A typical news consumption pattern is that you watch half an hour to an hour of news and then you are done for the day. The lifestyle content is designed to keep you watching for up to an extra hour by having content that is designed for an international businessperson. He/she would be interested in Golf, sport, design. I categorise this as news and information.

     

    Eco Solutions, which is about environment, has done well. CNN Go is a travel lifestyle programme sponsored by Korean Airlines. We, in fact, have diversified our news programmes. We have a show called Backstory in the morning. What we have found out is that people do not only want news headlines; they want to understand what is happening behind the scenes.

     

    On I-report we have found a way to take content that people send and create a news show around it. It is a different way of portraying the news. This is not just feature programmes.

    How did the idea of CNNGo come about?
    One thing that is common about upscale business people is that they are well traveled. They have a desire to know unique things about countries. Travel is one of the most interesting things for them. This is what CNN Go is about. It offers you insights on things to see, do and buy. There isn‘t a travel programme quite like it. There is a site as well that is quirky and interesting.

     

    The site is about six countries being featured including India. On television, one country and a different city is featured every month. Online, we have Citibank as a sponsor. For television, it is Korean Airlines.
    How are you growing your India content?
    Eye On India is coming up and we are promoting it. We are dedicating a lot of our daily news output towards Indian business, which will be aired across the world. We have, for instance, filmed the Birla Group.
    What role has Eye on India played to boost your perception here?
    It does generate a lot of interest. We are promoting it through the press. We are using outdoor hoardings – we have a big presence in the international Airports of Mumbai and Delhi. We are also using social media.
    Al Jazeera is looking at India with content focused here. Your views on this in terms of the impact it will have on the existing global players?
    We welcome competition; it keeps us on our toes. They have a good product, which is undeniable. But we are the No. 1 news network across the region. We aim to keep it that way.
    You recently announced sponsorship of the ISPS Handa Senior World Championship. How many events does CN sponsor and what role does it play in building brand awareness?
    Sports content is popular on CNN. We have Living Golf. Sports is an important platform. We sponsor five to 10 events a year.
    Organisations trimmed costs in the global recessionary environment. What did CNN do?
    We did not have any salary freeze and we did not layoff anybody. Being a part of Time Warner, we are always cost conscious. During the downturn, we actually invested more in our newsgathering operations. We boosted our staff and added more bureaus.
  • ‘India and China are our key markets in Asia’ : Dolby Laboratories senior director, broadcast Jason Power

    ‘India and China are our key markets in Asia’ : Dolby Laboratories senior director, broadcast Jason Power

     

    Driven by the rapid development in digital and mobile technologies, sound company Dolby is expanding its market base from cinema to the broadcasting sector.

     

    Dolby is pushing Dolby Digital Plus, an enhanced version of the Dolby Digital system, which allows broadcast operators to deliver surround sound. But Dolby also works with the entire value chain to ensure a better consumer experience.

     

    As the Indian broadcasting sector digitises, Dolby sees a big opportunity. It has stitched deals with three DTH operators and is in talks with the cable TV operators. It wants to work with content providers to boost the quality of their sound.

     

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, Dolby Laboratories senior director, broadcast Jason Power talks about the company’s growth across all media platforms and its India plans.

     

    Excerpts:

    What strategy has Dolby followed in the past few years to enhance the consumer’s entertainment experience?
    Our focus lies in all those things which are going digital and High Definition (HD). This is where we see a big opportunity as we create technologies that enable entertainment to be replayed at its best. While people know us for doing this best for cinema over the past 10 years, we have also been focusing on the broadcast sector and other areas where digital entertainment has been happening.

    Dolby has been closely linked to the transition to high definition around the world. Dolby has been there to make sure that the audio complements the HD picture.

     

    Now HD content is moving to digital devices such as the mobile phone. We ensure that content is replayed at its pristine best, regardless of the platform which includes online delivery.

    What new products have you added to your portfolio recently?
    The most exciting product for broadcasting is Dolby Digital Plus. Dolby Digital has been synonymous with HDTV. Dolby Digital Plus is the new generation of that technology and an ideal combination for new HD television services. It is being used in Europe and the US.

     

    In India, it is currently being used by three direct-to-home (DTH) operators – Airtel digital TV, Tata Sky and Sun Direct. Using our technology, they can now offer 7.1 channels of surround sound.

    How is Dolby Digital Plus an improvement?
    It allows surround sound to be added at attractive data rates. It minimises the data rate that broadcasters need to use for transmitting audio. There is a 40 per cent saving over the previous technology. Most importantly, it allows for future innovation. The Blu Ray disc, for example, has features for 7.1 channel audio, for interactivity in the audio. We can offer these same benefits to broadcasters. It can keep DTH competitive.

    What kind of product research does Dolby do to make sure that clients and consumers are satisfied?
    Satisfying consumers is what we are about. We believe that to be successful, we have to make a difference to the entertainment experience.

     

    To make the technology a difference, we want to help the industry create a surround sound. We work with content makers to help produce in surround sound. We work with broadcasters to help them handle that surround sound in their station. We also work with operators to help them transmit that surround sound.

     

    We work with set-top box (STB) vendors to help them input our technology. We also work with home cinema manufacturers. We do educational drives and training to help operators understand our technology better and see how people hook up systems better. We are present across the value chain.

    What have the learnings been from working with so many parties?
    In the broadcast business where we have over 1000 channels using our technology, we find the eco system complex. Many parties are involved in the chain. There is production, broadcasters, equipment vendors, STBs, chip suppliers and middleware. There are all these layers. You have to support all these players if you want to give the consumer at home a better experience.

     

    A key part of our success is our engagement with all the parties all the way through the value chain. We have not just tried to flog the technology in one small piece. We have engaged with the whole industry to help make surround sound a reality for them. We have nurtured and catalysed the process happening in the industry. This has been essential to our success in the broadcast business.
    ‘For us, the Indian market will be content driven. China, on the other hand, will be more manufacturing centric‘

    Which are your top three markets in Asia?
    You have to split it between the consumer audience and manufacturing. Clearly, there are TV manufacturers in Korea. But in terms of consumption and getting content on the air in our technology, India and China are key. They have large populations going through an exciting digital transition. DTH is exploding in India. The HD transition is just happening. Digital cable transition will happen in the coming years. This is why we are excited about India.

    Earlier Dolby was known for its work in cinema. When did you shift the focus to broadcast and mobile entertainment and how has it benefited you?
    We remain focussed and invest heavily on cinema. We innovate in terms of audio formats for cinema. We are involved in 3D for cinema.

    But we have steadily grown other businesses as digitisation has spread globally. Broadcast and PC is our second largest biggest segment.

    How important will the role of sound be in a digital Indian television landscape?
    What is interesting is that India has a passion for entertainment. Consumers are hungry for changing the quality of their entertainment experience; we can provide that change.

     

     

    HD is about video and audio. Both are equally important – or it is incomplete. We think that for HD to make a difference and a valuable proposition, it needs to be more than just a pretty picture on the wall. We can turn it into an immersive experience where the consumers feel that they are in there.

     

     

    We want to put your right in the middle of a cricket match, right in the middle of a rainforest or in the middle of your favourite drama, for instance. Picture gives you detail and something to watch for, but it is the sound that makes it real for you.

    What other products do you offer for the broadcast sector?
    The other product is Dolby Volume. It is a different challenge. It deals with the issue of volume inconsistencies across TV services. It can even be used in TV sets to level out sound differences.

    How big a challenge is it to market your products to television platforms and services in India and abroad?
    Our technology is used in over 50 per cent of TV sets shipped around the world. It is a challenge to market but we have invested in this area; we have improved the relevance of our technology. Our USP is about providing a richer, more immersive experience through surround sound for digital entertainment.

    What is the value add that the DTH players will get by partnering with Dolby?
    We are helping the three Indian DTH companies adopt our technology. They have included our technology in their STBs so that they can transmit on surround sound. We work upstream with broadcasters to help them provide a selection of surround sound content to feed on HD services. NGC, Discovery, ESPN are some channels that are making use of our surround sound technology. Our focus now is to work with local channels to help produce content in surround sound.

    Have you set any targets in terms of the amount of business you expect to see from India?
    We want our technology to be adopted by all the six DTH operators. We are also excited about digitisation of cable. We can help incentivise consumers to switch over to digital cable.
    To what extent did the economic downturn affect business?
    We have seen growth globally in the broadcast business. Our touch rate to digital television has doubled in the past two years. We have met our forecasts.

     

     

    We have benefited from the macro effect of HDTV rolling around the world. This insulated us from the downturn.

    Could you give me an example of how Dolby worked with a broadcaster to make the HD transition?
    We have worked with the DTH operators here. With Airtel we have worked not just in terms of enabling our technology in their transmission through STBs, but also to help them publicise this to the consumer and explain the difference.

     

    In the UK Sky was the first significant sized HDTV operator in Europe; so we worked with them on content. Cricket production was the first place we got involved in; we helped them work on mixing surround sound to their cricket coverage with minimal additional effort.
    In terms of sound, don’t movies and sport benefit the most?
    They do. However there are other genres like audience shows, live entertainment shows and talent shows that can also get a boost. They can be really immersive. I have seen people bend our format to all kinds of content.
    How big is your R&D effort?
    Our investment is sizeable. We have state of the art research going on in audio and imaging. We contributed some of the fundamental IP into MPEG 4 video encoding; we have some technology around high dynamic range imaging. We recently announced a product targeted at very high end post production facilities.
    Are you looking at setting up an R&D hub in India?
    That is something we would be open to. We have decentralised our research to use local talent. Five years back, we used to do most of our search in the west coast of the US. Now we have eight research locations dotted around the world. We are familiar with talent coming from here.
    How are you tackling China?
    We have been present there for a long time; our technology is a standard part of HD television there. We have 11 channels using our technology. As the digital TV transition is taking place, it is also an exciting market for us. We license our technology for STB manufactures. We partner with government agencies like Cesi. We help their members have access to our technology for the Chinese and global market.

    How are India and China different as markets?
    In India, it will be content driven for us; it is about making sure that there is local content using our technology.

     

    China, on the other hand, will be more manufacturing centric. It will be about enabling their manufacturers compete on a worldwide stage; we will give them audio features that the global market demands.
    On the cinema front, you have done work in stereoscopic 3D. Have exhibitors in India and overseas supported you in this, given the added investments they have had to make?
    Exhibitors are happy that they are able to command a premium price for 3D exhibition. It has helped them fund the investment in digital cinema exhibition.

     

    Some chains in India use us. According to our feedback, we provide the sharpest and clearest picture. Our glasses are reusable. It is not a wear once and throw away model. Theatres that are very quality conscious tend to like us more.

    How do you see 3D TV progressing?
    We are excited about the potential for 3D in broadcast. We see moves by major TV manufacturers to promote 3D TV sets. The interesting thing is that making a flat panel TV to a 3D one requires little cost. They can offer this additional benefit without there being a big impact on their cost.

     

    We see big forecasts of 3D TV shipments coming from broadcasters to transmit in 3D. We have published an open specification that broadcasters can use. We have exciting ideas about what we can offer in the future.
    In developing solutions for new media like mobile, you work with several partners like Nokia and LG. How has this experience been?
    We work with LG across different fields. With Nokia it is with the mobile phone and is a newer relationship. We work with them not just as an entertainment device but as an entertainment library device. You can have movie content on the phone and enjoy it with your headphones; you could also connect the phone to a home cinema system and enjoy the content in HD, Dolby surround System. We help these companies establish a completely new value proposition.

     

     

    We also work with companies like Netflix and AT&T to help their content get decoded in our formats. Then they can deliver this content through whatever pipes they choose in the best possible audio.

     

    What are the challenges in developing solutions for new media?
    We have partnered closely with the industry to make sure that technology is there in the form that they need it in. There are specific chips that are used in mobile phones. We also work with the chosen chip set vendors of handset manufacturers to make it easier for them to have our technologies available on a chip.
     
    The other part is creating technology to improve the headphone listening experience. When a consumer hits the Dolby button on the mobile phone, the whole experience should come alive. That is our goal. The challenge was creating a complex technology which you then make available in a form that works so that it is practical to implement on the mobile phone.
    What work does Dolby do in gaming?
    Our technology is included in Xbox, Playstation and Nintendo among other manufacturers. We work with game developers to see how best to include our technology. We also have a new technology called Dolby Axon. It is a voice communications application that helps interactive gamplay.
    What are the challenges in developing solutions for new media?
    We have partnered closely with the industry to make sure that technology is there in the form that they need it in. There are specific chips that are used in mobile phones. We also work with the chosen chip set vendors of handset manufacturers to make it easier for them to have our technologies available on a chip.

    The other part is creating technology to improve the headphone listening experience. When a consumer hits the Dolby button on the mobile phone, the whole experience should come alive. That is our goal. The challenge was creating a complex technology which you then make available in a form that works so that it is practical to implement on the mobile phone.
    What work does Dolby do in gaming?
    Our technology is included in Xbox, Playstation and Nintendo among other manufacturers. We work with game developers to see how best to include our technology. We also have a new technology called Dolby Axon. It is a voice communications application that helps interactive gamplay.
  • ‘We deliver natural history with a powerful brand at a global level’ : National Geographic Wild senior VP, Development Janet Han Vissering

    ‘We deliver natural history with a powerful brand at a global level’ : National Geographic Wild senior VP, Development Janet Han Vissering

    A new entrant in the infotainment space, Nat Geo Wild launched in India last year to cater to the need for high quality wild life and natural history content.

     

    The channel, which is on two DTH platforms, is looking to push distribution with a clear focus on digital. It is also doing an India specific show called Wild India which goes on air next year.

     

    National Geographic Wild senior VP, Development Janet Han Vissering is responsible for commissioning over 250 hours of original programming per year for broadcast in 166 countries, 330 million homes and 34 languages worldwide.

     

    Vissering manages a team to source and develop all original programming for Nat Geo Wild. Previously she was SVP of Strategic Development and Co-finance for seven years. As part of Development, she has been responsible for developing key programmes such as Engineering Connections, Big Bigger Biggest and Animal Autopsy among other highly rated shows.

     

    Prior to acquiring her current position, Vissering served as vice president of International Acquisitions at NGCI from August 1998 to March 2000. She joined NGCI from Discovery Networks International, where she was Head of Program Acquisitions and Development from 1995 to 1998.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Vissering talks about the challenges of creating unique content in an increasingly competitive television environment.

     

    Excerpts:

    What challenges do you face as a content production executive with more lifestyle and entertainment channels launching?
    It is the same challenge in India as it is around the world. The expansion of technology and bandwidth is allowing more channels to live together.

    How do you make programming different?
    My job is made easier as we deliver a channel that serves an audience that is begging for animals and natural history. They want family friendly content.

     

    We deliver natural history with a powerful brand at a global level. That is how we differentiate ourselves. At NGC we deliver by expanding genres like science, adventure, history and exploration.

    In terms of how Nat Geo Wild is programmed and scheduled, is there a difference between India and other countries like Singapore and Malaysia?
    It is independent. It is scheduled differently. We do shows to the viewers‘ choice which are relevant. People in Hong Kong love fish based shows. Here shows on snakes and big cats do really well. People are used to seeing these animals. Indians empathise with shows featuring these animals better. It is easier to identify with Wild even if it is not India specific. The flagship is harder as there are more genres.

     

    We have different genres of wildlife film. We leave it to our regions as to how they schedule to conform to the local needs.

    For Nat Geo Wild, what have been the learnings from NGC?
    You learn logistical things. We also learned the priority of customisation. We know what animals have rated better in each region. We know what animals do not rate. It was a great way for Nat Geo Wild to dip its toes into the water to find out what works and what does not. This is not just from a content basis but also from a logistical point of view. We know what the lead time is in terms of scheduling shoots.

    What response has Nat Geo Wild received in India and globally since launch?
    We are number one in our genre in Hong Kong, Singapore and Malaysia. We also had record ratings in the UK last week. We are a successful young network. In India we are on two DTH platforms – Dish TV and Tata Sky. Our focus is on digital. It is still young days here.
    ‘Nat Geo Wild is programmed & scheduled differently. In India, shows on snakes & big cats do really well. People in Hong Kong, on the other hand, love fish based shows‘

    What is its USP vis-a-vis other channels and shows dedicated to animals and wildlife?
    We have a foundation of scientific, factual research. No other network offers this perspective. Being part of Nat Geo offers us access to many places that other filmmakers do not gain access to. I think that also we feature scientists that are a part of the National geographic Explorer base. Heinrich Sala is a marine biologist and we are making a show on sharks that features his work. Access and scientific research are our USPs.

     

    We have the foundation of all our shows on factual research and science. We are the only network that has this guarantee. We are always about animals and the wild world. The main goal is to bring viewers closer to that natural world.

    Why didn‘t National Geographic launch a show for wildlife earlier?
    We launched the channel as wildlife is only one of many genres that National Geographic Channel has. Wildlife was a small part of their lineup but it consistently delivered ratings. We looked across the market and saw the channel that would meet viewer needs for high quality natural history content. This need was not being met. Viewers want programming that is safe that everybody in their family can watch. They want a channel that will always deliver high quality visuals, information and be a destination channel. We look at launching later as a benefit. We saw what was not there.

    Could you give me an overview of how the production process works at Nat Geo Wild?
    I work out of the DC office. As part of this, we have eight executives that reach out to over 300 production companies around the world. They work with outsourcing ideas. We also have a global website where anybody can actually submit their projects into. I on behalf of Wild meet with the National Geographic team to sift through the best ideas every two weeks. On a monthly basis, we have greenlight meeting with all departmental heads and the head of programming Jeff Daniel. This is where projects are greenlit and put into production.

    Before giving an idea the go ahead, what do you look for?
    I look for a myriad of things. I look for exclusivity. What is the USP? Why are we doing this show now and why are we using this filmmaker? There has to be great cinematic value. The market is competitive. There are a lot of options. I have to give a show that nobody can do anywhere else. This is key for me. Our shows are shot 100 per cent in HD.

    How much research goes into making a successful show like Engineering Connections on NGC?
    This is a show that I really pushed for. It involved a UK star Richard Hammond. He has passion for engineering. What we wanted to do was show all collections of how a guitar vibrating in a room can relate to an oil platform. The show builds a bridge between different subject matters. It took over a year to do. We picked ideas which were iconic like a Formula One vehicle but had really good connection an odd connection. A+B has to equal C.

     

    Every step of production including the music was important to me. Hammond was immersive. We had to make sure that he was okay in doing stunts. There was one moment where he was strung up on a bridge and he was scared. That made great television.

    Could you talk about the upcoming ‘Wild India‘ series on Nat Geo Wild?
    This goes on air early next year. This will be a three hour special. It is a coffee table celebration of India and its wildlife. We felt that there hadn‘t been a really good natural history series on India for ten years. The last good show was Land Of The Tiger that the BBC has made. Things have moved on since then. A whole new young audience is interested in India‘s natural history. The technology has also moved on.

     

    We have more interesting camera techniques to capture intimate animal behaviour. We have HD cameras, night film cameras, infra red and thermal cameras. We can, thus, film in the night. We want people to experience a much more personal wildlife.

    Did the economic downturn put pressure on budgeting?
    The global economic situation has made everyone think twice. But we continue to do projects. I scrutinise every penny more. It is up to us and the filmmakers to make sure that the investment being made is sound. So we rely on reliable production companies like Icon Films. The production team on Wild India is largely Indian. The crew is from Tamil Nadu, Karnataka and Gujarat. So cameramen can be on the field for longer. We do not have long haul flights to pay for. We can be more responsive.

     

    You have to respond to the natural environment. This is a homegrown product which is important. With any film whether it is from Russia, Asia, Japan or Scandinavia, I want to make sure that filmmakers can get access and give viewers the feeling of being right there next to the environment.
    What have been the learnings from localisation in terms of what works and what does not globally?
    I am in a lucky position that wildlife has few cultural barriers. Everyone loves tigers, big cats, snakes. There are few cultural issues I have to worry about.
    Is it a collaborative effort working with production companies?
    Yes! We always have one of our Nat Geo Wild or NGC executive producers who is working in partnership with an executive producer from the production company side by side all the way through the film. We have an internal production group from National Geographic television that make shows with us often featuring our own scientists.

    How long does it take for a show to be made?
    It depends. Wild India will take a year to make. They will shoot in March and April. It takes at least six months but most shows take nine months. We can do a quick turnaround on a topical subject matter, though. When the Gulf oil spill happened in the US, we did a show within four weeks of that accident.

     

    But natural history does not work on human timelines. We have to work hand in hand with Mother Nature. A tiger will show up when it wants to. Animals are unpredictable. If they were predictable, my life would be easier bur probably less exciting. It is the moment of capturing that bit of footage that makes it worthwhile. To give you an idea of how challenging making wildlife content can be, on Wild Mississippi the temperature was minus 30 degrees Fahrenheit. We had to use urine to prevent the camera from freezing.
    What are the trends we are seeing in environmental and wildlife film making?
    Having a first point of view, less narration and giving the impression that people are there next to the cameraman is very important now. Less is more. Beautiful cinematic images are important. Having characters that can deliver adventure and the journey of exposition in a very visceral way is also important. People want to be vowed.
    What role is HD playing in boosting the documentary genre?
    Each show is on HD. This is a non negotiable discussion with any show going on air. This is a must before we commission anything. From a visual aspect it is different and an enhancement from Standard Definition. When you watch Wild India, you will feel that you are flying on a plane over India on your own. On Standard Definition images are cloudy. It is like looking through muddy waters. On HD you get the true essence of where you are. You can almost smell where you are. We will deliver 100 hours of premiere HD content every year.
    Balancing traditional story telling techniques with technical innovation is key for the success of factual content. How does NGC manage this?
    We have the ability to film wildlife in HD at night. This gives you the perspective of three cameras that allow you to see how animals work at night.
    What other recent commissions have been done?
    Following Wild India we also have Wild Mississippi, Secret Brazil. These are three part specials like Wild India. That will celebrate the journey into natural areas. We also have hosted shows that are young and contemporary. We will have a show featuring a heli cowboy in Australia. At the end of the year we have our annual Big Cat Week to bring awareness about conservation. We will have shows on the Jaguar, American Cougar and the Indian Cloud Leopard.
    How does NGC use new media platforms like YouTube to leverage its brand?
    We have our site, links and blogs. This is additional information for viewers. We will expand on this as our network grows. As we send filmmakers to exotic places, we will look for conversations on Twitter and other media.
    Are you looking at long term projects?
    Absolutely. We are still in negotiations though. We are also a young network.
  • ‘We aim to be among the top 3 studios in the country within 3 years’ : Viacom18 Motion Pictures chief operating officer Vikram Malhotra

    ‘We aim to be among the top 3 studios in the country within 3 years’ : Viacom18 Motion Pictures chief operating officer Vikram Malhotra

    Knocked down by a model that relied heavily on acquisitions, Network18 founder-promoter Raghav Bahl has reworked on the movie production business that he has moved to a joint venture company with Viacom as a partner.

     

    Having snapped up The Indian Film Company that was listed on London‘s Alternative Investment Market (AIM), Bahl will now have movies rolled out from Viacom18, the company that also houses Hindi general entertainment channel Colors, MTV India, Nick and Vh1.

     

    A cautious spender this time, Bahl has earmarked Rs 1.20 billion for a seven-movie slate that will run through early 2012. The peak funding requirement in a three-year horizon will be Rs 2.50 billion

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, Viacom18 Motion Pictures chief operating officer Vikram Malhotra talks about the mistakes learnt from Studio18, the focus on building a sustainable capability and the company‘s revival plans.

     

    Excerpts:
     
     
    The Indian Film Company churned out several hits like Ghajini, Singh is Kinng, Jab We Met, Welcome and Golmaal Returns in the initial years. Why it suddenly collapsed and couldn‘t survive the downturn?
    TIFC had a great run in the first two years. Then came the downturn in the industry. The business model of acquisition was fraught with risks and it lost more value share than the others.
     

     
    One year of stupidity wiped out the hard work that TIFC had initially done. What did it do fundamentally wrong for this to happen?
    In 2006 and 2007 capital was easily available to the industry and the acquisition model suited the business environment at that time. But the risks are much higher than the market and the operating margins much thinner. In the changed climate, the model needed to be revisited.

     
     
    Was the team not capable to change in the changing times?
    Clearly, the team at that time chose to stick to the then existing model and could not read fully into where the market was heading. The motion pictures business is a dynamic and competitive one and your eye needs to be constantly on the ball. A large part of the focus at that time was on distribution and not on building capabilities to create and produce films. This industry needs a model that is fundamentally sound but agile enough to suit the operating environment.

     
     
    How is the business model more protected now?
    We have moved away from the old business model of trading and acquisitions. We won‘t be making first copy ready made acquisitions. We are de-risking by building IP and our own creation. Even in co-productions, we will be involved at every stage. We will be a streamlined organisation that is nimble footed and is focused on profitability, sustainability and capability. We are, in short, rebooting the business.
     

     
    Why was the movie business shifted to Viacom18 before working on a revival plan?
    I can‘t comment extensively on this as it happened before my time here. But for Viacom18 which is in the entertainment broadcasting space, the movie production business is only a logical extension – particularly when the business was being revisited. Movies are a fundamental part of the entertainment space in India.

     

    Studio18 is now rebranded as Viacom18 Motion Pictures. A linked advantage to this realignment of the business is the immense synergies that we will draw from the multiple media platforms that Viacom18 has.

     
    ‘We are 20-25% de-risked before entering into a movie project because of our integrated model. We have a good non-theatrical revenue opportunity with Colors, the upcoming movie channel, MTV and Nick‘   
     

     
    How much of the movie business is led by the need to feed content into Hindi general entertainment channel Colors, the upcoming Hindi movie channel, MTV and Nick?
    We are, in fact, 20-25 per cent de-risked before entering into a movie project because of our integrated model. We have a good non-theatrical revenue opportunity with Colors, the movie channel, MTV and Nick. Incidentally, Colors currently happens to be the leading acquirer of motion pictures content.

     
     
    Sources say the revival plan includes an investment of Rs 1.20 billion for the first line up of movies and a peak funding requirement of Rs 2.50 billion over three years. Why is Viacom18 taking such a cautious approach?
    I can‘t comment on the financials. But fundamentally, we are going to be prudent in capital spending. We have lined up a slate of seven movies through early 2012, with Players being the most expensive (sources say Rs 400 million upwards). We are doing four films with first time directors.

     

    We will kick off our slate with a rom-com titled ‘Tanu Weds Manu‘ that will hit the screens on 25 February. This will be followed by two films that are co-productions with Anurag Kashyap – Michael (Working Title) & Shaitan. These films are set for release in the first quarter of the next fiscal year.

     

    The roster also includes Gang of Waseeypur (2 Series), Buddah (starring Amitabh Bachchan) by Puri Jaganathan, and David Dhawan‘s Chashme Baddoor.

     

    We will weigh the financial success of each movie. The first two years will be a crucial build-up. In the third year, we will review the business and change track accordingly.
     

     
    Is this the best time to stage a comeback with the inflationary costs correcting to a great extent?
    Irrationality has definitely been thrown out of the window. There is a need for further correction in star costs but we will spend our pennies very carefully. Besides, our marketing costs will be 10-15 per cent lower due to the wide reach of our channels like Colors, MTV, Vh1 and Nick.
     

     
    How wide will the movie slate be?
    We are going to have a minimum threshold of six movie releases a year. We are in no hurry to deploy capital. We are in no hurry to produce the costliest movie. We are in a hurry to get it right. We are building our business brick-by-brick.

     
     
    Will you be producing smaller movies under a different brand name?
    An important part of the gameplan is to produce movies in the urban-youth genre under the brand of ‘Tipping Point Films‘. This kind of targeted movies will also be content for MTV. We have projects in the urban-youth genre in co-production with Irock Media.

     

    As for animation movies, we are evaluating them along with our partnership with Nick. But there is nothing concrete on this front.

     
     
    Is regional language movies on the agenda?
    We are very keenly watching the regional space, particularly Marathi and Bengali. The cultural and economic dynamics are different. We will spend the next few months understanding that market.
     

     

     
    Viacom18 has plans to launch Marathi and Bengali language entertainment channels. Will you wait till then before you decide on movie projects in these languages?
    The movie projects are not linked to the launch of the regional channels. While we will share a relationship with the channels if and when they come, we are not inter-dependent for the launch of regional language movies.

     
     
    What is the distribution gameplan?
    We will distribute our own movies. We have our outfits in Mumbai, Delhi and UP territories. The distribution network is being expanded to the South markets, Rajasthan and the North. We will also handle overseas distribution. We will continue to build on our backbone and take up other movies for distribution if the costs are rational. 

     
    Will you get into the home video segment as well?
    We are not entering this segment. The way consumption is happening is changing very fast – you have satellite release windows shortening, new media is growing and 3G is coming. Besides, one has to tackle piracy.

     
    How do you plan to scale up?
    The scale-up plan will involve creating franchise properties that will have a sliding cost model while upping box office revenues. Players is positioned as a franchise property. We plan to have 2-3 properties by 2012. We aim to be among the top three studios in the country within three years – at least in terms of profitability.

  • ‘There is significant increase in competition from companies and countries from Asia and LA’ : Iatas president and CEO Bruce Paisner

    ‘There is significant increase in competition from companies and countries from Asia and LA’ : Iatas president and CEO Bruce Paisner

     

    The International Emmy Awards have been growing in strength from year to year. These recognise the best in television from around the world. This time around The International Academy of Arts and Sciences (Iatas) wants India to be a bigger part of the awards and the Academy. With that aim in mind Iatas president and CEO Bruce Paisner is coming down to India next month to meet with the top television industry professionals. He will be assisted in this by Anil Wanvari a member of the Academy.

     

    In an interview with Indiantelevision.com, Paisner talks about the role the Academy plays in recognising the best of global television, country participation, the importance of having digital media awards.

     

    Excerpts:

     

     What role does The International Academy of Television Arts & Sciences play in facilitating awareness of global television programming?
    We award International Emmys in ten categories as well as digital and news categories. During the year we run panels and forums to stay at the cutting edge of developments in international programming. We set the standard for excellence in television programming. Performances and nominations and wins are carefully followed by industry professionals, television fans and the media at large.

     

    We pride ourselves in offering every year, a unique cultural showcase of the best television currently produced around the world. When a producer or broadcaster enters a programme or performance into our competition, they open themselves up to many wonderful opportunities: being nominated or winning an Emmy of course, but also, having their programme watched by jurors from all over the world.

     

    Additionally, our network of over 600 Members from 50 countries who represent all sectors of the television industry including mobile and Internet, plays a major role in promoting our activities and the importance of entering into our competition.

    In light of this, we are doing more activities with our Members and more international outreach.

     

    How has your flagship event, The International Emmy Awards, grown over the past five years?
    The International Emmy Awards Gala has grown in both prestige and attendance. It also has grown in the number of countries represented that night in the room. Last November, we had over 50 countries represented. The International Academy’s goal is to make the experience in the room better for our guests every year. People convene to New York for the International Emmy Awards and The International Emmy World Television Festival and we strive to offer them a full 3-day programme which includes both business and social events.

     

    The buzz around the awards has grown. Last year we gave Special Awards to Lorne Michaels and Simon Cowell. Past award recipients in the last five years have included Steven Spielberg, Al Gore and Oprah Winfrey. The global publicity and excitement around the event is rising every year and we are thankful to our Gala Partners, Phoenix Satellite Television, TV Globo, Microsoft, Dori Media Group, Ascent Media, Ernst & Young, Variety, Mip TV and Sofitel Luxury Hotels for their continued support.

     

    How does the selection process work? Has country participation increased?
    It is important to understand that The Academy does not select programmes; the producers and broadcasters need to enter their programmes into the competition. All the rules and entry information are on our website www.iemmys.tv.

     

    We have a total of 15 programme categories. Nominees are selected through a lengthy and rigorous judging process which takes place over a period of six months and three rounds of judging. Over 720 independent jurors, who are selected because they are experts in their category, participated in this process in 2010. There are four nominees in each category that make it to the final round

     

    Regarding increase in country participation, in the past five years we’ve seen significant increase in participation in the competition from companies and countries from Asia and Latin America. Entries from Latin America have doubled and those from Asia, the Middle East and Africa have grown by more than 50 per cent. Unfortunately, India’s quality programming is vastly underrepresented so far. We look forward to that changing.

     
     
    What kind of marketing do you do to create awareness among broadcasters about the awards?
    We have ad campaigns that run in trade magazines throughout the year, throughout the world. We are present at the leading trade shows such as Natpe, MIPTV and Mipcom. We distribute our publication, The International Emmy Almanac, at those events where we also advertise about membership and entries into the competition.

     

    We also have a quarterly newsletter that goes to over 10,000 industry contacts worldwide and a Facebook and Twitter following. And as you know, since you have been hosting a semi-final round of judging for us for several years, we are present in over 15 countries every summer with local semi-final rounds of judging events organised by member companies. These events are strategic in creating awareness about the competition because they involve content producers directly. Once they see how the competition works, they are more likely to enter their programmes.

     

    “India is such a prominent player in the television industry and unfortunately, this is not reflected in the International Emmy Awards competition. We hope more Indian television professionals will get involved with us“

    You added the digital Emmys a few years back. Was that done to acknowledge changes happening in a rapidly changing media landscape?
    Definitely, as The International Academy we need to reflect the developments in our industry. Multiplatform content is the norm now, and audiences’ viewing patterns are leading the growth in the digital sector.

     

    The International Digital Emmy Awards recognise excellence in programming and content created and designed for viewer interaction and/or delivery on a digital platform (i.e. mobile, internet, interactive TV, etc.) originating outside the United States. We have three categories: Fiction; Non-Fiction and Children & Young People. The competition has been growing over the past five years and we’re looking forward to more entries every year.

     
    The aim for you is to stay one step ahead of developments in the industry. What steps were recently taken to achieve this?
    This is a very good question. Of course, we need to stay one step ahead so that our members can stay one step ahead. To that end we organise industry forums and panels that address the central challenges and opportunities our industry is facing.

     

    Our competition also stays one step ahead. One example is the digital Emmy awards, with the three categories which have evolved over the years and the presentation of a Pioneer Prize, which recognizes the outstanding contributions of an individual or organisation to the field of digital entertainment. Another example is separating the news categories to News & Current Affairs and presenting them at a separate News Emmy awards ceremony presented by the National Academy in New York.

     

    Also, the Telenovela category was created three years ago because of the global nature of the phenomenon and the need for our competition to recognise this important genre became imperative.

     
    Could you talk about the scope The International Academy sees in India for content producers and channels to be a part of The International Academy?
    First of all, we encourage Indian content producers and broadcasters to enter their programmes into the International Emmy Awards competition. The entry deadline for this year is February 20th, all the information is on our website www.iemmys.tv. It’s very simple to enter, and also important to enter as many categories as possible.

     

    Also, if you are involved in international television, you should consider becoming a Member. Our team in New York will be happy to help with any questions regarding Membership, they can email iemmys@iemmys.tv.

     

    India is such a prominent player in the television industry and unfortunately, this is not reflected in the International Emmy Awards competition. We hope more Indian television professionals will get involved with us and thanks to the wonderful platform offered by Indiantelevision.com and Anil Wanvari, we hope this will be possible.
  • ‘Max is an extremely successful channel’ : Max Sr EVP and business head Sneha Rajani

    ‘Max is an extremely successful channel’ : Max Sr EVP and business head Sneha Rajani

    Multi Screen Media‘s hybrid channel Max has completed 11 years and today is a prime asset of the company.

     

    While it telecasts the lucrative Indian Premier League (IPL), in the movie space it is in close fight with Zee Cinema for the top spot.

     

    In an interview with Indiantelevision.com’s Gaurav Laghate, Max Sr EVP and business head Sneha Rajani talks about how Max has successfully run its movie and cricket businesses separately and profitably.

     

     

    Excerpts:

    Max has been both, praised and criticised, for changes in cricket programming. Your comments…
    What we did with cricket was pioneering. We changed the way cricket was viewed and consumed in this country. Till then it was like a match being aired and a little bit of analysis thrown. What we wanted to do, and which is where we revolutionised cricket viewing, was that we wanted to increase the base.

    Cricket was predominantly male viewing till we came into the market. We knew that in order to increase the base, it couldn‘t be just confined to the men. We had to make it all inclusive.

    So we took some seriously bold steps like introducing a woman anchor way back in 2002 (Ruby Bhatia) and Extraa Innings.

     

    In the 2003 World Cup, we had three women instead of one – and purists went ballistic. The ratings increased five times, women audience grew 200 per cent and Extraa Innings touched a 19 TVR.

    Another milestone was duplicating the success of Extraa Innings with movies – Extra Shots. Mandira Bedi became the first movie jockey.

     

    From 2008 we are having IPL. There has been no dull moment since then – we are made for each other.

    What about movies?
    Blockbuster movie acquisition is something Max has been associated with always. Out of the 10-12 big films every year, Max has easily over half of them. Be it Lagaan, Devdaas, Om Shanti Om or 3 Idiots – you will always see the best and biggest movies on Max.

    3 Idiots is, perhaps, the biggest coup that Sony has pulled off. Look at the ratings of the first three airings.

    With so much controversies and bad publicity going around IPL, will it have any adverse impact on your revenue targets?
    I won‘t comment on numbers but any publicity is good publicity…it helps you look positively. And at the end of the day, the IPL is a league that the audience wants to watch. The thought and vision is so strong that the IPL will continue to be the biggest entertainment spectacle.

    Max being a hybrid channel, the cost of investment is much higher compared to a pure play movie channel…
    Yes, but we look at the two as completely separate businesses. And both are doing fairly well independently.

    And yes, as for cricket, the rights have been acquired for 10 years. We are well aware of the costs. But as far as movie acquisition is concerned, we know the prices have gone up tremendously, which is why we have been extremely careful about how many movies we have picked up this year and at what price.

    But you have acquired very few movies this year?
    Let me put it this way… We have not acquired as many films as we normally do simply because we did not want to pay unrealistically high. Acquisition has to make business sense.
    ‘We have not acquired as many films as we normally do, simply because we did not want to pay unrealistically high. Acquisition has to make business sense‘

    As Colors is buying movies aggressively for its upcoming movie channel, what will be your plan of action?
    Not just Colors, Star has also picked up a lot of them. Colors is in a different life cycle; they are in a launch phase. We are nowhere in the launch phase, we have a very solid library. We have acquired enough number of premieres.

    So what are the parameters that you look for while acquiring the movies?
    We have a budget and a set of parameters. Our recent acquisitions are Robot, Crook, Raktacharitra, We Are Family and Hisss.

    When you are airing movies, you do not have scope for creative programming. How is your channel different from the other movie channels?
    The scope is very limited simply because we run movies back to back; there is very little space available for us to do anything else. But in the next quarter, we are trying to bring in at least a couple of innovations.

    So far we have Extraa Shots – which has a different look to it every month. We shoot with TV stars; we have picture-in-picture type shots etc. It has been refreshed continuously over time.

    But how will you differentiate between your channel, and say, Zee Cinema and Star Gold if everyone is playing the same movies?
    You are talking about the syndication model. But there are very few movies that have been shared between the broadcasters like Jab We Met airing on 10 different channels.

    I can say 99 per cent of our library is exclusive, and so is Zee‘s and Star‘s. There are very few – around 50 films that are shared in the market.

    So you don‘t believe in the syndication model?
    We as broadcasters are extremely and completely against the syndication model. If you talk to other broadcasters, I think they will also share the same views.

    I think it is not right for the broadcasters and for the movie itself. I think producers also should not encourage this as it completely devalues the product.

    But many channels have formed business models on syndication. Like Colors acquired first airing, Imagine TV got second airings…
    The response to that is the pricing is wrong. It does not mean that you change the model and introduce a model that completely kills your product and the brand of the channel.

    We had to acquire some movies on syndication as they were not available otherwise. But going forward, we have not acquired any film that is on syndication. It is outright acquisition model that we are following.

    Which movies you had to take on syndication?
    Om Shanti Om, Chandni Chowk to China, Bhootnath, Jab We Met and a few others. But after that, we haven‘t. Like 3 Idiots – which we acquired exclusively.
    The window between theatrical release and TV premiere has shortened. But a movie channel gets the movie after it airs on the general entertainment channel. Is there a return on investment?
    If not, why will Colors launch a movie channel? And let me tell you, I can‘t talk about the other movie channels, but Max is a very successful channel. Not just from the ratings point of few, but as a business it is extremely successful.

    And as you rightly said, the big premiere happens on a general entertainment channel simply because the effective rates on a GEC are far higher than a movie channel. But there is a model there which works, and that‘s why everyone is doing it.

    In other words, we recover what we invest.

    But Zee Cinema is not investing heavily on acquisitions and rates higher than Max. So is it not a more effective business channel?
    They do buy, maybe not as much as Star or Sony or Colors, but it is because their business model is different.
     

    And talking about Sony, even before we launched Max, our brand promise was that we are known for our blockbusters. Our strategies

    are different. I wouldn‘t say theirs is more effective or ours is.

    And if you see the last five years, Max has been leading more than them. Obviously our strategy is also working.

    Also don‘t forget that Zee Cinema has got a first mover advantage. It‘s a far older channel. People are used to it and in the Hindi heartland they have a huge following.
  • ‘Collecting subscriber numbers is not enough’ : Tata Sky MD & CEO Vikram Kaushik

    ‘Collecting subscriber numbers is not enough’ : Tata Sky MD & CEO Vikram Kaushik

    When Star floated a company for DTH, there were several issues raised on shareholding and other related matters. Was that a ghost that initially haunted you when you joined Tata Sky?

    When on its own, Star made no progress and the DTH venture couldn‘t kick off due to reasons outside their control. Then they floated a joint venture company with the Tatas and I joined to head that. The past never bothered the venture. We developed a blueprint from the first day itself, but the project was delayed as we chased for licence approval.

    The delays were not entirely due to the government; competitors wanted to delay the project. The bad thing that happened is that several retrograde steps were introduced which should have never been there in the first place. Interoperability, no exclusive content and foreign direct investment (FDI) cap of 49 per cent, for instance. There is still a lot of nervousness regarding foreign ownership.

    But isn‘t the government more comfortable with DTH now?

    The government has started understanding that without digitalisation, the media and entertainment industry can‘t grow; you won‘t get transparency and addressability in the distribution chain.

     

    Has the government then become supportive?

    The government needs to do much more. Across the world, the government has provided subsidies for digitalisation. In India, the private sector has entirely taken up this responsibility – and this investment is coming at a very high cost.

    The DTH sector is heavily taxed. There is also a distortion because of the under-declaration of subscribers by the cable operators. This leads to the inevitable need of regulatory intervention to correct these anomalies.

     

    Despite these anomalies, the DTH sector is on a fast growth track. When you first outlined the business plan, did you foresee such an exponential growth in DTH subscribers? 

    We are somewhat surprised by the volume growth. But nobody expected that India would have six players and with deep pockets. The marketing activity stimulated the sector‘s growth. Also, the digital cable initiatives could not match up to the DTH challenge; cable has not been able to upgrade.

     

    How did you strike a balance between volume chase and maintaining a premium brand positioning?

    When we started out, we decided that we won‘t go to small towns and villages and chase low lying fruits. Our strategy was to first capture the top 50 towns and then spread out. Dish TV, on the other hand, tapped the cable dry areas and expanded outside.

    We feel ours has been the right approach. We have a better quality subscriber base. And while Dish TV has more subscribers, we are the biggest Indian DTH company when it comes to revenues.

    The dilemma continues even today: Should we go largely for value or look at volumes. It is easy to chase volumes. In the longer run, the correct strategy is not to lose sight of volumes but focus on value. We never panicked when our competitors mopped up more subscribers in a month. What matters in the long term is higher ARPUs and sticky customers.

    ‘Given the cable ARPUs and lack of exclusive content, it is difficult to independently drive them up beyond a point. The content cost is also high, while the hardware prices are not low enough. It is a tough game to play‘

    What other hard decisions did you have to take at the start?

    We had to decide whether the STBs should be given free or sold. We believed the free model, in vogue in matured ARPU markets, wouldn‘t work in India. That turned out to be the right decision.

     

    Why did you soon have to revise your investment plan from Rs 30 billion to Rs 40 billion?

    We were initially looking at an investment of Rs 12 billion and then came up with a realistic estimate of Rs 30 billion. Subsequently, we revisited that plan and estimated our funding requirement to be Rs 40 billion. There are too many DTH operators and the price war came at an early stage of the game.

     

    Has that business projection gone through further changes?

    Our fund requirement will be over Rs 40 billion. We have already spent more than Rs 35 billion and have mopped up over six million customers. We are on course for operational break even. Broadly, this takes 5-7 years.

     

    Aren‘t you disappointed that Tata Sky still lags behind Dish TV in subscriber numbers?

    They may have more subscribers because of their first mover advantage, but we have beaten them in revenues. Though ARPUs (average revenue per user) for the sector are still pretty bad (Rs 135-150), ours is the highest in the industry (Rs 195).

    What we have learnt in this business is that collecting subscriber numbers is not enough. This is a sector where subscriber acquisition costs are high and ARPUs low. If you have a faster churn, then you have a real problem. Sun Direct and Videocon d2h run a danger in that.

     

    Can ARPUs rise to a comfortable level?

    Given the cable ARPUs and lack of exclusive content, it is difficult to independently drive them up beyond a point. The content cost is also high, while the hardware prices are not low enough. It is a tough game to play.

    The hyper competition among the DTH players has not been healthy. Everybody has bled heavily on account of the price war.

     

    And still in this clutter, Tata Sky has stood out as a brand. How did you manage that?

    Building a brand in this sector is a unique challenge. We build a pedigree brand with our high quality and performance focus. When you have the ‘Tata‘ and ‘Sky‘ names behind the product, the challenge is to weave a double-barrelled branding. The fact is that we have stood up against Airtel and the others.

    We have also extended the brand to franchises like Tata Sky Plus. The satisfying part is that in a highly cluttered environment, we have spent less for many years than our competitors, but used the medium much more effectively. We have also used celebrity advertising in a manner that was never done before.

     

    How has Sky been an advantage?

    We could have the best and world class knowhow from them. There were 30 expatriates working in Tata Sky before we even started our service. That resource is continually available to us.

    The Tata brand, in turn, brought in credibility with the government, trade, consumers and potential employees.

     

    Q. Star has upped its effective stake in Tata Sky to 29.8 per cent. The additional 9.8 per cent stake for Rs 3.24 billion pegs the valuation of Tata Sky at Rs 33.06 billion. The market cap of dish TV is Rs 74.73 billion. Are you happy with this valuation?

    Star will hold close to 30 per cent in Tata Sky. The Tatas will have around 60 per cent and Temasek 10 per cent.

    As for Tata Sky‘s valuation, this won‘t be the right way to look at it. The stake acquisition is done by one of the promoter partners. This is an internal and not an external valuation.

     

    Q. What are the technological advantages that Tata Sky has brought to the sector?

    We continue to lead the way in terms of technology, customer service or innovations relating to packaging. We are the leading platform to promote education – be it to small children or to housewives learning English. We pioneered the concept of pre-paid customers in DTH. We are clearly at the forefront when it comes to PVR, VOD and other interactive services.

    We have played a significant role in bringing the hardware costs down. Interestingly, the set-top box (STB) cost is cheaper from China to India than in China itself. We have also set some global benchmarks in productivity, growth and value creation.

    We have used consumer research very effectively. TruChoice, for instance, recognises viewership habits and makes that content available. People tend to buy genres and that is related to the nature of the family. For those families having children, it is important to have kids programming and knowledge in the menu. Families with older people will tend to look at movie packs.

     

    Q. How do you approach the South India market?

    We don‘t compete on price. The market is too unremunerative.

     

    Q. On the content cost front, do you see the Trai tariff order (channels to give to DTH at rates 35 per cent of analogue cable) as the right formula for DTH companies?

    This is a step in the right direction, though we feel it should have been closer to 20 per cent. Broadcasters shouldn‘t have moved the court. Addressability is in the interest of the broadcasters; and yet they are resisting any kind of tariff regulation. I see short term perspectives prevailing in the entire media industry.

    Q. Do you see the telecom companies having an advantage in the DTH space?

    The telecom players feel that there will ultimately be convergence and they will stand to gain. They are, perhaps, driven by some fancy strategists. The truth is that there is need for domain expertise in each of these businesses. And each of these businesses are unique.

     

    Q. Why is private equity reluctant to invest in the DTH companies?

    I do not see too much private equity coming into the DTH sector. There will be a selective and long term approach. Fundamentally, the business model is saddled with high taxation, low ARPUs, and too many players. Profitability is an issue. In many cases, by piling up customers, you are not building assets but liabilities.

    We could, perhaps, see consolidation in the next few years. There will be space for three players and maybe a regional operator.

     

    Q. How much of capital will be required by the time the DTH sector reaches 50 million subscribers?

    The industry will need Rs 200-250 billion for 45-50 million subscribers. There is already an investment of Rs 120-150 billion. But there won‘t be shortage of capital to fund the sector‘s growth.

  • ‘Our aim is to become the currency tool for media research’ : Ormax Media co-founder & CEO Shailesh Kapoor

    ‘Our aim is to become the currency tool for media research’ : Ormax Media co-founder & CEO Shailesh Kapoor

    Ormax Media, the consumer knowledge and consulting firm for the media and entertainment industry, was launched jointly by Vispy Doctor, the managing director of Ormax Consultants, a specialist in qualitative research, and former Filmy business head Shailesh Kapoor in July 2008.

    The company has expanded across categories like television, radio, films, and media agencies. It has launched various tools, which can predict the future of a show or a film.

    The expansion plan includes doing research in the news and South Indian market. The aim is to establish Ormax Media as the currency tool for media research.

    In an interview with Indiatelevision.com‘s Gaurav Laghate, Kapoor sheds light on the research needs in the media and entertainment industry and Ormax Media‘s drive to plug the gaps.

    Excerpts:

    You have worked with companies like Sony, Zee, Zoom and Filmy in roles across marketing, content and business strategy. So what led to Ormax Media?
    The idea was always there, I wanted to start something of my own. And I wanted to set up something which combined the media and entertainment industry where I came from with the marketing and consumer understanding that was always my interest.

    The exciting part is that we are working on multiple categories – like GECs (general entertainment channels), niche channels, movies, radio and digital. So there is a wide variety that makes the learning experience far more dynamic than it would have been in a traditional media role.

    What the company has achieved in these two years?
    Since it has been a new company, the first year focus was on consolidation and the second year was really of growth and expansion into new categories, businesses and clients.

    We started with TV. It was for two reasons – a far more organised industry in the M&E sector and also because of size.

    In 2009 we started with GECs, then moved on to niche channels and radio. During this time, we also started creating specific products.

    How did you identify the need for the product offerings?
    As we met more and more people, we recognised that there were common needs across the category. For example, there was common need for tracking marketing campaigns for TV programmes. This resulted in a tool – Showbuzz.

    You said you are in expansion mode. What all categories are you looking at?
    Initially, we spent time on developing tools, products and methodology. Then our focus was clearly on categories where we had strength. Like Bollywood – so we launched Cinematix. We are planning to launch a structured product of test screening of Hindi movies soon.

    How has the film industry responded so far?
    We have already worked on 7-8 movies in the last six months. And I think for an industry which is still getting used to the idea of research, it‘s a pretty healthy number. Going forward, the film industry will continue to be the focus. First we were trying to get them on board and trying to make them understand the whole idea of research. And we were pleasantly surprised. Once they (film industry) were exposed to this; they were more than willing to receive research in a far more flexible manner.
     

    What are the challenges you have been facing for getting clients?
    The biggest challenge has been to meet more and more people and give them the flavour of what research can give them. And once they get the right flavour and do one project, they certainly understand the importance of it.

    Apart from films, what are the other areas you will be focusing on now?
    The areas which we are going to focus on now are specific categories – like South and news.

    What opportunities do you see in the southern regional market?
    South is a very big market for both TV and cinema industry. The fundamentals of TV and film research are not different. And we have teams in the four southern states.

    And what are your plans for the news industry?
    The news market is one that largely relies on Tam. But at the category level, there may not be any tools and products available. So we are looking at that option.

    News is also a big category in terms of revenue. It is a category where the advertiser buying is often based on decisions based not directly on the function of the ratings. Particularly English news channels where many different parameters come into play.

    All your tools basically try to asses and predict the future – cinematix or showbuzz?
    A lot of our work is going into putting tools and analytics in place. We are trying to create ways in which future prediction and future analysis can be made rather than just looking at the past and getting a sense of that.

    Research is not just looking at today and giving feedback at what people are liking or not liking. I think the more important area, where a lot of our energies are focused on, is to predict the future.

    So what all services you offer to clients?
    We have three kinds of products. Syndicated products are owned by us like Showbuzz, Cinematics, Characters India Love, RJ Files. We do them at our cost, irrespective of who is subscribing or not subscribing to it. This is data which is registered and trademarked to us. Whoever subscribes to it, gets it.

    These products are most cost effective for all as they are common to the industry. Multiple people are subscribing and paying for it . It cannot be affordable for someone wanting to do it alone.

    Second is commissioned research, which could be qualitative or quantitative research. These are need based research.

    We also do consulting work, which is specifically beyond consumer research and is more advisory in nature. But it is not our main area of work. We are primarily a consumer understanding firm.

    How much market share are you looking at acquiring in future?
    We hope to be controlling at least 75-80 per cent of the research market in a couple of years. That doesn‘t mean we are going to compete with already established systems such as Tam, Ram etc. We are going to complement the information available through them. So if Tam gives the viewership, we will add value by explaining the viewership understanding. We are more about adding value beyond the measurement systems.
    If some other similar company starts working on the same lines, what will be your plan of action?
    See, eventually, in a category like this, one becomes currency. We have seen that in case of Tam. The second player to come will have a disadvantage. It is difficult to say at this stage who will become currency, but my sense is that till the time other players will come, we will be established as the industry currency. We are moving in the right direction.
  • ‘Japan, India & Australia are our biggest markets in the Asia Pacific region’ : Discovery Networks Asia Pacific executive VP, MD Tom Keaveny

    ‘Japan, India & Australia are our biggest markets in the Asia Pacific region’ : Discovery Networks Asia Pacific executive VP, MD Tom Keaveny

    Discovery is upping the ante in India. Leading the infotainment genre, the company has crafted three channel launches in India this year: Discovery Science, Discovery Turbo and Discovery HD. It has also introduced regional feeds for its flagship channel, Discovery.

     

    While media companies across the world cut down on their costs due to a global economic downturn, Discovery continued with its annual expense of $1 billion on content. The idea: Discovery drives on premium content.

     

    Japan, India and Australia are Discovery‘s top markets in the Asia Pacific region.

     

    For expanding in India, Discovery is taking the organic route. Acquisitions are not on the agenda.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Discovery Networks Asia Pacific executive VP, MD Tom Keaveny talks about the company‘s growth plans in the region.

     

    Excerpts:
     
     
    Could you give us an overview of the strategy that Discovery has followed to grow the business across the Asia Pacific region over the past couple of years?
    Having local people run local markets is the first thing. I know that this sounds obvious but it is important to have Indians run the business in India. They know what people want, when they watch it and why they do not watch things.

     

    Secondly, the local people schedule programming on channels according to viewer tastes and feedback; they also do localisation. In India, for instance, we launched feeds for Discovery in Tamil and Telugu this year.

     

    Then there is content creation. It started a few years ago with The Great Indian Wedding on Discovery Travel and Living (now known as TLC). We also had Shah Rukh Khan Living With A Superstar, which also was a success in Malaysia. We do local content on the basis that it can be used in other markets.
     

     
    In the US, there was a certain amount of re-organisation with a clear focus on being more cost efficient. What shape has this taken in the Asia Pacific region?
    We have always been cost efficient. In a recession, you are forced to look at costs but the areas where we carried on investing was content and branding of channels. We spend $1 billion a year on content.

     

    In India, the recession meant slower growth. Australia was having a mineral boom, and so there was ad sales growth. China grew. Japan has had inherent problems, but so much of our business here is based on distribution revenues that we were less affected.

     
     
    What impact did the economic downturn have on your growth trajectory?
    I won‘t say that we were not affected. However, other companies probably cut back more than us. We are seeing the benefits of continuing to invest in content.
     

     
    For the second quarter Discovery reported increased ad revenue growth of 38 per cent for its international networks. Does this mean that the difficult economic climate is behind international broadcasters like Discovery or do challenges and difficulties remain?
    Sales is a difficult job. But we have had ratings growth. Some of this ad revenue growth you mentioned has to do with the fact that last year was a lower base.

     

    Do I think that we have seen the end of the downturn? Well, whatever happens economically, our audiences have grown. We have had a 27 per cent audience growth in India. This has been replicated across other Asian markets.

     
     
    How much revenue comes from the Asia Pacific? Which are your top three markets?
    Japan, India, Australia are our biggest markets. Malaysia and Taiwan come next. India is growing at a good rate. However, I cannot tell you how much revenue comes from the Asia Pacific.

     
     
    ‘With new channels coming in, you would expect to see cannibalisation. But that has not happened for us. With competition, the profile of the genre has got an uplift‘
     
     

    To what extent has Discovery increased the number of feeds over the past year across Asia?
    We have launched more feeds in Australia, Malaysia, Philippines. We are going into more languages. Demand is significant. The assumption is that if you launch more networks, audiences will go down. For us it has been the reverse. The more networks there are, the higher is our viewership.
     
     

    Is fragmentation a worry for Discovery with international broadcasters launching channels in the movie, entertainment and infotainment space?
    With new channels coming in, you would expect to see cannibalisation. But that has not happened for us. When we launched Discovery Science and Turbo around the world, we did not see Discovery Channel‘s audience dip. Instead it grew. With competition, the profile of the genre gets an uplift.
     

     
    What impact do you see the three new channels having on the Indian infotainment landscape?
    I can‘t think of a market in the world where Discovery Science will be better received. India is a technology hub. It is a young nation and there is a thirst for knowledge. So having a channel dedicated to science makes sense.

     

    And Discovery Turbo can take encouragement from the fact that the automobile sector is seeing robust growth in India. But I also see it being important as a male lifestyle channel.
     

     
    Recent research showed that there is still a degree of uncertainty about the benefits of HD for television viewing. How do you see HD as a value add?
    Our content which includes natural history and wildlife fits into HD very well. We launched Discovery HD in Japan in 2005. It has only been in the past two to three years that other channels started investing in this technology. For us investing in technology is in our DNA. It is part of our psychological profile because it is a brand promise as well.

     

    We have a future proof library. For example, Shah Rukh Khan Living With A Superstar was filmed in HD. Once viewers see HD, going back is a difficult proposition. But everybody has to work towards it. It cannot be just one or two networks that are doing the heavy lifting.
     

     
    Have you done any research among the creme de la creme viewers to find out what they expect from a network like yours?
    There is congruity in terms what viewers to want to watch. Travel and cooking are key genres. Shows that combine these genres like Anthony Bourdain also work well. Grooming shows also work. Shows like Man vs Wild, Deadliest Catch, Mythbusters work globally. At the same time, you do have to take into account local tastes.

     
     
    A lot of focus has been given to Animal Planet over the past 18 months. The aim was to make the programming sharper, more edgy. Is this increased investment starting to pay dividends?
    In the digital environment, it has been one of the fastest growing channels. There is a lot of co-viewing happening. We constantly look at the schedule, find out what works and attempt to be contemporary.

     

     
    Are you satisfied with the joint venture relationship Discovery has with Multi Screen Media?
    It was the right deal to do at the right time. We have developed and grown our networks. The deal was a gamechanger and formed a template for others to follow.
     

     
    How do you get a revenue uplift from India quite in line with the success you have had with the audiences here?
    We have a two-pronged strategy in India. We launch new networks that will rate and grow audiences for us in this market. This is how ad revenue will grow. On the distribution side, there is a tipping point where analogue shuts down. Australia went quickly from analogue to digital. In India, how quick will the transition be? At what point do addressability, cable, DTH, number of channels and package costs come into play? That is something we all are trying to grapple with.

     
    Global media companies are setting up JVs with local companies in India. Is Discovery looking at something like this to grow its business in India?
    JVs are being done now by companies that were maybe 10-15 years late in getting into India. The question is whether they are doing a JV because they want to do it or because they have to. Companies that came into India early like Discovery have done it on their own terms.

    Having said that, there are times when a strategic alliance makes sense. In Japan, for instance, we have a JV with JCom. The Hub, our new channel that is set for launch, is another good fit as it brings together two strong brands in production and distribution.

  • ‘The pharma industry needs an absolute mind shift. They have to think FMCG and act pharma’ : McCann strategy director Manjunath Hegde

    ‘The pharma industry needs an absolute mind shift. They have to think FMCG and act pharma’ : McCann strategy director Manjunath Hegde

    Manjunath Hegde, masters in marketing management from Jamnalal Bajaj Institute, has over 23 years of experience in 360 brand management and consumer insight based strategy and creative. Over the years he has worked on some of the best brands – P&G, Unilever, Infosys, Taj Hotels, Lakme, ICICI, United Brewries, Marico, Zee TV, CRY. He is also associated with agencies such as Ambience Publicis, Leo Burnett and Bates Clarion.

    Hegde has also spent a couple of years in Dubai as COO, Liwa Advertising, restructuring the agency to global standards and getting business worth millions during the peak of recession. He also co-founded the brand consultancy firm ‘Chlorophyll‘.

    Hegde is presently McCann strategy director, specifically focusing on the pharmaceutical industry.

    In an interview with Indiantelevision.com‘s Anindita Sarkar, Hegde talks about the various advertising and marketing challenges that the pharma industry faces today.

    Excerpts:

    Unlike yesteryears, today there is a lot of brand communication talk happening within the pharma industry. Why this shift? 

    Until now pharma companies had not found a need for real brand management. But they are slowly waking up to the need. And this is because pharma companies have recognised that there is a need for multiple touch points to contact its various stakeholders – patients, chemists, doctors, relatives – for a range of categories as the market in ever expanding and is hugely competitive.

     

    You have been involved in branding at various levels. How similar or different is brand building in the pharma industry?

    The brand building process of a pharma product is very challenging. The principles of brand building will always remain the same; it‘s the manner of executing them that change when it comes to the pharma category.

    Look, for example, it is quite easy for the FMCG advertisers to create brands because they have access to the mass media. But when it comes to the pharma industry, there are media and legal restrictions; you need to take care of your audience and the key influencer, which is the doctor. Because, in this case, you cannot reach out to the consumer directly by foregoing the doctor.

     

    So, what is the communication challenge of an OTC product?

    See, an OTC product can be divided into two categories. The first kind is one which can be purchased across the counter and, therefore, can be advertised like cough syrups. The second category is where by repeat purchase (self medication), the product steadily falls into the OTC bracket again. And in both these categories, it is a must for the products to build an image of their own. The brand communication has to create space in the consumers‘ life; it has to be an experience by itself. It cannot behave indifferently. Only then will the brand be recognized by the consumer. And this is the communication challenge in this category.

     

    How do you deal with the branding strategy of a pharma product as against any other category?

    In the pharma industry, unlike an FMCG product which talks to masses or for that matter any other category, we are dealing with problems that are related to health issues. So, here you are talking to someone who is ill and while your audience is that one affected person, the relatives and family members also become an important audience. Also, here the communication has to be done with the key influencer or the qualified influencer, which is the doctor. And in addition to this, there are also the strict government rules which one needs to adhere to. So the category advertising by itself is extremely challenging and the treatment is very different. Here the product has to go beyond the regular talking about what it will do as a drug and rather become a part of the affected consumer through a new life changing story.

    For example, if it is a product that is made for diabetic patients, then it should talk about the healthy lifestyle approach that one needs to take if affected. It has to show support and concern. Only then will it become a part of the patient‘s life.

     

    What is the primary difference between promoting an OTC brand versus a general brand?

    In an OTC brand, you talk to the consumer directly. But for non-OTC, you cannot use mass media; you are not allowed to. These brands have to be prescribed by a doctor. So in this case, the communication is directed towards the doctor.

    Also, most brands decide not to go OTC (and sometimes they cannot go because its ingredient based) because it is a different ball game altogether. The media spends are higher, the exposure to competition is on a severe basis; it‘s a large market now and totally volume based. So it‘s largely a pull versus push strategy wherein you make the consumers come and ask for it. Whereas, when it comes to non-OTC, it is only a push and push strategy. The companies push it down to the doctors and then the doctors push it to the consumers.  

    ‘A larger trend is moving towards the wellness category – it is a huge market out there. So there is a huge growth opportunity in this segment.‘

     

    So many times is it a conscious decision to go non-OTC? 

    Absolutely. Many times it happens that brands have become OTC by default. And this means that at some point of time they were prescription based, but gradually the consumer has moved to buy the product on his own through repeated purchase. Now, one could take a decision to go OTC but in that case, it may lose out on the prescribed category because the doctor will now stop prescribing that medicine.

    The doctor has to and should refer a non-OTC brand and, therefore, companies who are pharma strong will give a window to the doctors.

     

    In a category like this where you cannot advertise through mass media, what are the primary marketing platforms? 

    In this category there is a need to be present so that you are seen and can touch consumer life in areas where you can meet them. These could be jogging parks, treadmill companies, doctor‘s clinics, conferences and forums. The brands have to talk about their own essence, and say, “I am there.”

    Also, the pharma industry needs an absolute mind shift. They have to think FMCG and act pharma. This means they have to look into the product from the consumer‘s point of view.

     

    Is there alternative medicine market in India (like ayurvedic products, etc.)? Is there a fair consumer tilt towards these?

    Today consumers are becoming more and more health conscious and, thus, there is a trend wherein people are moving towards organic and non-toxic products, courtesy the internet. A larger trend is moving towards the precaution and wellness category – it is a huge market out there. So there is a huge growth opportunity in the wellness category.