Tag: Media company

Times Internet’s transformation from media company to tech company

KOLKATA: Digital disruption is reshaping the media and entertainment ecosystem at a rapid pace. As media companies adapt to the change, investment in technology is emerging as the need of the hour. Times Internet Ltd (TIL) COO Puneet Gupt also emphasised that every media company needs to have a tech mindset, during a virtual fireside chat hosted by Indiantelevision.com.

Without proper technology being built and deployed, media companies will not be able to understand how the next wave of change could possibly affect the business, Gupt explained. TIL has successfully transformed itself from a media company having tech as a delivery engine to being a tech company that has media as an asset, he shared. Going forwards, tech is going to fuel TIL’s growth, making sure that all of its businesses grow on the back of the user base it already has.

TIL leverages its massive reach for any newly launched product on the back of technology. Gupt explained that all of TIL properties are internally connected with a technology flywheel that tries to move users from a low ARPU high reach kind of product to a high ARPU kind of product. While the organisation has gradually built its tech segment over the last five-six years, the approach helps it to leverage the entire reach of TIL as well as all the learning for better content, tech and product decision for any new property.

“We think we have cracked the science of virality and converting content to commerce. A few years ago, when the algorithms had not changed, some TIL properties were at the top of the virality charts,” Gupt said.

He also shed light on TIL’s initiatives that have yielded positive results for the company. “For the last four-five years, we have been working on a bunch of components whether it is our own content management system, whether it is AI or ML algorithms for a lot of work that we do, or on the adtech side where we think there is a large vacuum of right technology being available to the publisher. The advertising technology today is heavily favouring the bias. It’s really built for the buy-side, not on the sales side,” he added.

Realising the publishers’ need, TIL built its own ad tech engine – Colombia. Later, the company put the best of content management and advertising ability to build M-360, which is gaining good traction. Currently, M360 has 80-90 publishers on board and Gupt said that they expect the number to reach a few hundred in six-nine months.

According to Gupt, 20-30 per cent of large media companies in India have already started investing in tech. But the initiative needs to reach medium and small publishers as well because a lot of “low-hanging staff” in newsrooms is going to be automated soon. However, he clarified that it does not mean that journalists might lose their importance. While technology can make churning out a part of content faster, journalists can focus on detailed, in-depth content.

“You will get visitors, your visitors will have to convert to loyalists and the loyalists will have to convert to paid subscribers. This entire cycle has to work well,” he said. “The content that is created for the subscription side will be measured on the ability to convert a loyalist to a paid user; the ability to retain and renew a paid user,” he added further.

With emerging technologies, the conversation around data protection is also becoming more prominent. Gupt stated that publishers should focus on respecting users’ choice and consent, focusing on receiving data properly rather than collecting it, thereby upholding the ‘right to be forgotten’. He termed TIL as a “worthy custodian of data” as it has always managed data with utmost care.

November 28, 2020
Viacom acquires Awesomeness TV

MUMBAI: Viacom is acquiring Awesomeness TV Holdings, a media company and digital-first destination for original programming which will go live under Viacom Digital Studios (VDS) and play an important role in Viacom’s premium content production ecosystem, drive additional growth at VDS, and strengthen digital and social relationships in youth culture.

Viacom already has strong audience connections with kids via Nickelodeon and young adults via MTV. While VDS has been growing briskly – more than tripling digital streams since 2016 and doubling YouTube subscribers over the past year, as total social views and watch time soared by 112 and 104 per cent, respectively. Awesomeness’ dedicated sales force, branded content studio, and existing relationships with brands such as Hollister, Gatorade and Invisalign will further drive VDS’ growth and profitability.

VDS president and chief business officer of Awesomeness Kelly Day said, “Awesomeness has done an incredible job building their brand into a digital media powerhouse for todays most sought-after and hard-to-reach youth audiences. The team brings strong digital expertise, deep connections with top talent and influencers, and a robust branded content studio and creative agency that will accelerate the growth and scale of VDS.”

With distribution deals with major SVOD players and its own Emmy-winning, youth-focused studios that have produced 200 hours of long-form television and feature film content, Awesomeness’ proven content development and production abilities are good fit for Viacom, which has moved deliberately to ramp up its capabilities in this area recently: consolidating several operations across the Americas into Viacom International Studios to service global markets; moving to a studio model under which Nickelodeon, MTV and other brands will licence and produce shows based on intellectual property for third-party platforms; and building paramount pictures’ paramount television production arm from scratch into a $400-million-and-growing annual business.

July 30, 2018
Q3-2015: Discovery’s US Networks mitigate International Networks revenue drop due to forex

BENGALURU: Discovery Communications, Inc. (Discovery) reported a 0.7 per cent drop in revenue in the quarter ended 30 September, 2015 (Q3-2015, current quarter) at $1557 million as compared to the $1568 million in the corresponding year ago quarter. Its US networks reported eight per cent growth in revenue to $781 million (50.1 per cent of Total Revenue or TR) in the current quarter as compared to the $723 million (46.1 per cent of TR) in Q3-2014 and hence mitigated the nine per cent drop in international Networks revenue. The company’s International Network revenue in the current quarter declined to $740 million (47.5 per cent of TR) from $813 million (51.8 per cent of TR) in the corresponding quarter of last year. Discovery says that revenue at its International Networks declined primarily due to currency effects.

Discovery’s Adjusted Operating Income Before Depreciation and Amortization( (OIBDA) decreased nine per cent to $576 million, as four per cent growth at US Networks was more than offset by a 21 per cent decline at International Networks, primarily due to currency effects, and a small operating loss at ‘Education’ and ‘Other’.

“Discovery’s unique portfolio of assets and global brands drove yet another quarter of strong worldwide viewership and financial results,” said Discovery president and CEO David Zaslav. “Discovery is like no other media company, propelled by our unmatched global infrastructure, local leadership, efficient global content model and sturdy position in the US, and we are confident in our ability to drive near and long-term growth and shareholder value.”

Basic and dilute Earnings per share (EPS) in the current quarter increased to $0.43 as compared to the $0.41 in Q3-2014.

US Networks

The above mentioned US Networks revenue growth in the current quarter was driven by 12.3 per cent growth in Distribution and 5.7 per cent growth in Advertising revenues. US Networks Distribution revenue increased to $357 million in the current quarter as compared to the $318 million in Q3-2014. Discovery says that Distribution revenue growth was primarily driven by higher rates and the consolidation of Discovery Family.

US Network’s Advertising revenue in Q3-2015 increased to $410 million as compared to the $388 million in the corresponding year ago quarter. The company says that Advertising revenues increased primarily due to higher pricing.

US Networks adjusted OIBDA increased four per cent to $443 million (56.7 per cent margin) in the current quarter from $426 million (58.9 per cent margin) in Q3-2014. Excluding the consolidation of Discovery Family, adjusted OIBDA was relatively flat, as revenue growth was offset by an 11 per cent increase in operating expenses, mainly due to higher content amortization and marketing costs.

International Networks

Adjusted OIBDA of the segment declined 21.3 per cent to $218 million (29.5 per cent margin) in Q3-2015 from $277 million (34.1 per cent margin) in Q3-2014. As mentioned above, International Networks revenue and adjusted OIBDA declines in the current quarter were due to changes in foreign currency exchange rates.

International Networks Distribution revenue declined 2.6 per cent in the current quarter to $419 million from $430 million in Q3-2014. International Networks Advertising revenue in Q3-2015 declined 14.2 per cent to $289 million from $337 million in the corresponding quarter of last year.

Discovery says that excluding currency effects and the impact of Eurosport and SBS Radio, total revenues were up nine per cent. Distribution revenues, excluding the impact of Eurosport and currency effects, grew eight per cent mainly from increased subscribers and rates in Latin America as well as increased subscribers in CEEMEA. Advertising revenues, excluding the impact of Eurosport, SBS Radio and currency, were up 12 per cent, primarily due to higher volume and prices in Latin America and higher ratings, prices and volume in Southern Europe. Other revenues, excluding the impact of Eurosport, SBS Radio and currency, decreased $2 million, primarily due to lower program sales.

The company informs that excluding the impact of Eurosport, SBS Radio and currency, Adjusted OIBDA was up four per cent, reflecting the nine per cent revenue growth partially offset by a 13 per cent increase in operating expenses. The higher operating expenses were primarily due to increased content expenses and personnel costs.

Education and Other

Education and Other revenue for Q3-2015 increased by $1 million. Adjusted OIBDA decreased by $8 million compared to Q3-2014 due to additional investments in education primarily related to digital textbooks, higher production costs associated with greater utilisation of our in-house production companies, and higher personnel costs.

The segment reported revenue of $36 million in the current quarter as compared to $35 million in Q3-2014. Adjusted OIBDA in Q3-2015 was negative $5 million as compared to positive adjusted OIBDA of $3 million in Q3-2014.

November 4, 2015
Sun TV Network shows brighter results for FY 2013; announces ad rate hike

MUMBAI: The Sun TV Network is celebrating its twentieth birthday this year. And the sun seems to be coming out from the clouds at south India’s strongest media company – involved in broadcasting and production with a bouquet of 32 channels – if one looks at its latest financials for FY 2012 and FY 2013. Both profits and revenues are up, despite the testing times it is facing in its markets with national broadcasters such as Star, Sony and Zee TV getting aggressive in the regional language space.

In an earnings release filed with the BSE earlier today, it stated that ad revenues maintained momentum up 15 per cent in the quarter ended March 2013 and DTH subscription revenues rose 16 per cent quarter on quarter and 12 per cent year on year. It also said that FM radio operations posted a strong around with its revenues rising 26 per cent year on year and reported profits.

And it is looking at even better times in the year ahead the Sun Group CFO SL Narayanan told CNBC TV 18 earlier today. It announced that it was hiking ad rates for Sun TV for its weekday prime time slots by 19 per cent and also looking at hiking the slot fees it charges TV producers. This would be its first increase after 24 months, and it would look at raising advertising tariffs for the other channels under its umbrella in the coming months.

But for now let’s take a look at the standalone results for Q4 FY 2013 vs Q3 FY 2013

Net profits fell by 6.5 per cent to Rs 177.50 crore on a quarterly basis as compared to Q3 FY 2013; however there has been a notable increase of 11.6 per cent when compared to the corresponding Q4 FY 2012 net profit of Rs 159.03 crore showing a clear positive trend.

Its operational income of Q4 FY 2013 witnessed a slight decrease by 2.71 per cent to Rs 472.67 crore as compared to the numbers in Q3 FY 2013 but a positive upward trend of over 10.6 per cent is witnessed from the corresponding Q4 FY 2012 which stood at Rs 427.01 crore promising a decent growth and expansion.

The operational expenses have increased by over 5.5 per cent to Rs 225.79 crore for Q4 FY 2013 as against Rs 213.90 crore for Q3 FY 2013, while the corresponding Q4-FY 2012 ‘s operational expenses stood at Rs.205.63 crore, implying an annual 9.8 per cent increase in expenses. Although the operational expenses overall have increased, the employee remuneration and benefits seem to have dipped to Rs 444.50 crore in Q4 FY 2013 from the preceding quarter’s Rs 476 crore.

Let’s take a look at the annual consolidated results for FY 2013 vs FY 2012

The overall net profits seem to show a decent positive trend. FY 2013’s net profits stand at Rs 709.56 crore as compared to FY 2012’s net profits of Rs 692.91 crore, a minimal increase of 2.4 per cent.

The operating expenses over the year seem to have significantly increased to Rs. 955.59 crore for FY 2013 as against FY 2012’s Rs. 906.40 crore year ending, a notable 5.42 per cent. A major contribution to these expenses is from ‘cost of revenue’ which has shown a drastic 39 per cent increase. Also the operational revenues show an increasing trend of around 4 per cent standing at Rs 1923 crore for FY 2013 from Rs 1847.17 crore of FY 2012.

The revenues have shown a better trend since the early quarters of the financial year 2013, considering the deal of Sun TV Network with AIADMK’s Arasu Cable that was sealed in same year, leading to better advertisement and subscription revenues for its Tamil channels. However with Chennai, the city that gathers significant revenues in terms of subscriptions, resisting digitisation, the fruits of a digitised ecosystem have yet to accrue to its financials.

The deferred tax liability in the balance sheet has positively shrunk and stands at Rs 28.44 crore for FY 2013 from Rs 33.78 crore for FY 2012. The long term loans too been clipped by around 54 per cent which seems to be a positive.

The current liquidity ratio stands at 0.38:1 as compared to last fiscal year’s ratio of 0.33:1, a slight improvement in its short term solvency position.

On the assets side, Sun TV shows an increase in its fixed assets to Rs 1335.89 crore in FY 2013 from Rs 1205.54 crore in FY 2012.

The meeting of the board of directors held on the 17 May has recommended a final dividend of Rs 2 (40 per cent) on a face value of Rs 5 per share. This is apart from the interim dividend of Rs 2.50 per share declared earlier in January 2013.

The board has also announced an update on its allocation of its IPO proceeds totalling up to Rs 571.94 crore. Out of this a major part amounting to Rs 355.77 crore shall be used in capitalisation of its subsidiaries.

The share price is at 427.90, down by 3.42 per cent (15.15 points)

May 17, 2013
BabyUniverse & HarperCollins Publishers ink video content partnership deal

MUMBAI: BabyUniverse, Inc. an Internet content, commerce and new media company in the pregnancy, baby and toddler marketplace, has announced that it has signed a video content partnership agreement with HarperCollins Publishers.

Entertaining video segments based on scenarios from the new book, Babyproofing Your Marriage, How to Laugh More, Argue Less, and Communicate Better as Your Family Grows, will be featured on BabyTV.com, an Internet integrated broadcast channel and social networking community focused on the needs of new and expectant parents, informs an official release.

“We could not be more excited about this unique content relationship and its alignment with the objectives of BabyTV.com,” said BabyUniverse chairman and CEO John Textor. “HarperCollins’ decision to produce entertaining video content as a means to promote this certain best seller is truly visionary in the new media marketplace. With our acute focus on the connection between content and commerce, the content of Babyproofing Your Marriage has found a perfect home at BabyTV.com.”

BabyTV.com debuted in December 2006 with cross visibility to over 1.7 million monthly unique visitors of BabyUniverse-owned e-commerce properties such as BabyUniverse.com, PoshTots.com and DreamTimeBaby.com, and content properties such as PoshCravings.com and ePregnancy.com, adds the release.

BabyTV.com is presented in an interactive format in which the consumer can tune in to broadcast-quality streaming television, upload videos to share with the community, interact with live events, engage in e-commerce transactions, browse links on the Web, and participate in BabyTV.com’s online community.

January 18, 2007