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Tag: Media & Entertainment

  • Guest Column: 3 drivers lending power to create impact in Indian TV industry

    Guest Column: 3 drivers lending power to create impact in Indian TV industry

    The Indian Media & Entertainment industry is categorised across nine segments of which Television by far is the largest and is expected to be the largest in the next couple of years.

    India is the second largest Television market in the world characterised by rising number of subscribers.

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    Three top long term growth catalysts that are acting as the biggest drivers for the Television industry are:

    1.    Growing Rural Demand
    2.    Increasing FTA channels, and
    3.    Deeper Audience Measurement

    Growing Rural Demand

    Digitisation which is expected to be completed in 2017 is leading to higher digital access and consumption.  High data consumption has already been experienced and there are encouraging trends with rising internet and broadband penetration, declining data charges, proliferation of internet enabled mobile phone, government and private initiatives around wifi and greater emphasis on broadband roll-out by MSOs.  This has led to an unprecedented advertiser interest in digital which played out with a strong performance of digital in 2016.  OTT is therefore seeing a major traction wherein both digital VOD and TV would see a harmonious co-existence.

    Increasing FTA channels

    The big story is 2016 has been that of the rural viewership habits.  BARC viewership data for rural has thrown up interesting insights and goldmine data about rural viewing habits and hence the proliferation of FTA channels.  This development will however require realignment of content for mass tastes.

    Deeper Audience Measurement

    With viewership data leading to better consumer analytics and with advertiser focus and monies increasing in rural HSMs, scientific audience measurement will be the third most important driver for the television industry.

    Conclusion

    The global economy grew at 2.6% in 2016 while the Indian economy is projected to grow at 7.1% in 2017.  The long-term future for the television industry is very robust with CAGR projections above 14% for both segments of ad revenues and subscription revenues.

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    (Piyush Sharma, a global tech, media and entrepreneurial leader, created the successful foray of Zee Entertainment in India and globally under the ‘Living’ brand. The views expressed here are of the writer’s and Indiantelevision.com may not subscribe to them.)

  • Prime Focus reports flat results for first quarter

    BENGALURU: After the sale of certain investments and restructuring and integration costs in the previous fiscal (FY-17), including in the quarter ended 30 June 2016 (Q1-17), Prime Focus Limited (PFL) had reported healthy numbers for FY-17. The company has now reported almost flat revenue and EBIDTA numbers for the quarter ended 30 June 2017 (Q1-18, current quarter) as compared to Q1-17. Revenue Income from operations was 2.41 percent lower in the current quarter at Rs 5,135.22 million as compared to Rs 5,262.13 million in Q1-17. Total Income in Q1-18 was 0.82 percent lower year-over-year (y-o-y) at Rs 5,241.89 million as compared to Rs 5,285.09 million in Q1-17.

    EBIDTA including other income in the current quarter was flat (down 0.01 percent) at Rs 1,033.16 million (19.71 percent of Total Income) as compared to Rs 1,033.30 million (19.55 percent of Total Income) in Q1-17. The company says that adjusted EBIDTA was up 9 percent at Rs. 1,118mn (Q1-17: Rs. 1,023 million), with margin at 21.4 percent (Q1-17: 19.4 percent), with significant work being delivered on projects from India. The company reported foreign exchange gain for the period at Rs. 22 million.

    Total Expenditure in Q1-18 declined fractionally by 0.11 percent to Rs 5,239.58 million from Rs 5,245.19 million in Q1-17. Employee benefits expense in Q1-18 reduced 6.18 percent to Rs 2,966.46 million from Rs 3,161.77 million in the corresponding quarter of the previous year. Technician fees in Q1-18 reduced 1.30 percent to Rs 90.51 million from Rs 91.70 million in Q1-17. Technical Services cost in the current quarter fell by 18.86 percent to Rs 134.35 million from Rs 165.59 million in Q1-17. Finance cost in Q1-18 increased 24.08 percent to Rs 376.38 million from Rs 303.32 million in Q1-17. PFL says that Finance costs in the current quarter includes non-operating charges of Rs. 85 millon on account of amortizations of debt like items Other Expenditure in the current quarter increased 9.41 percent to Rs 911.06 million as compared to Rs 832.73 million in corresponding quarter of fiscal 2017.

    In its investor presentation, PFL says that its creative services revenue in Q1-18 was Rs 4,042 million, while in Q1-17 it was Rs 4,052 million. Adjusted EBIDTA for creative services increased in Q1-18 to Rs 804 million (19.9 percent margin) from Rs 682 million (16.8 percent margin) in Q1-17. The company says that EBITDA margin increased as India integration proceeded at a steady pace; significant work continued to be delivered on projects from India, and steps were being taken to upsize and upskill the Indian workforce. PFL launched PFAMES (Prime Focus Academy of Media & Entertainment Studies) for training entry level personnel in India. It claims that it has delivered movies like Transformers: The Last Knight, Wonder Woman, The Mummy, Pirates of the Caribbean: Dead Men Tell No Tales and King Arthur: Legend of the Sword among others. PFL says that it has an order book at in excess of $250 million with projects like M:I 6 – Mission Impossible, Godzilla Sequel, Pacific Rim: Uprising, American Assassin, Justice League, Geostorm, Avengers, Alpha, Blade Runner 2049, Thor Ragnarok and other major unannounced projects.

    PFL’s Tech/Tech Enabled services revenue in Q1-18 was slightly lower at Rs 822 million as compared to Rs 841 million in the corresponding year ago quarter. EBIDTA for Tech/Tech Enabled services increased to Rs 223 million (27.1 percent margin) from Rs 220 million (26.1 percent margin). Its order book for Tech/Tech Enabled services was at $200 million to be executed over next 3 to 5 years.

    ALSO READ :

    Prime Focus reports profit for third quarter of 2017

    Q2-2016: Prime Focus revenue up 47% ;EBIDTA doubles

    Reliance MediaWorks acquires 30 per cent stake in Prime Focus

  • Prime Focus turns around

    Prime Focus turns around

    BENGALURU: Prime Focus Limited (PFL) has reported robust financial performance, including consolidated profit after tax (PAT) for the period ended 31 March 2017 (quarter – Q4-17 and current quarter, current fiscal; year FY-17 and current year) as compared to the corresponding year ago periods – Q4-16 and FY-16 respectively. PFL reported consolidated PAT for FY-17 at Rs 1,397.39 million as compared to a consolidated loss of Rs 3,168.29 million in fiscal 2016. For the current quarter, PFL reported consolidated PAT of Rs 457.66 million as compared to a consolidated loss of Rs 2,648,86 million in FY-16.

    The company’s consolidated total revenue from operations (TR) in FY-17 increased 55.7 percent to Rs 21,536.25 million from Rs 13,828.15 million in the previous year. Consolidated total Income in the current year increased 52.5 percent to Rs 21,780.76 million from Rs 14,283.57 million in the previous year.

    In its investor presentation, PFL says that strong growth across businesses drove consolidated income growth of 14 percent primarily led by encouraging growth in Creative Services driven by additional capacity and deliveries from India. Creative and Tech/Tech Enabled services contributed 78 percent and 16 percent, respectively. The company’s three main businesses are Creative Services – it works on Hollywood Blockbusters; Technology Services; and Films and Media Services (FMS) where it works mainly with Indian films.

    PFL’s adjusted EBIDTA for FY-17 increased 50 percent to Rs 5,014 million from Rs 3,348 million in FY-16.

    Total Expenditure in FY-17 increased 29.2 percent to Rs 21,261.99 million from Rs 1,6454,04 million in FY-16. Employee benefits expense in FY-17 increased 41.5 percent to Rs 12,163.23 million from Rs 8,596.69 million in the previous year. Technicians fees in FY-17 increased 49.4 percent to Rs 368.92 million from Rs 246.95 million in FY-16. Technical Services cost in the current year increased by 28.5 percent to Rs 591.61 million from Rs 460.37 million in FY-16. Employee Stock Options or ESOP costs in fiscal 2017 increased by almost six-fold in FY-17 to Rs 256.69 million as compared to Rs 42.83 million in the previous year.

    Finance cost in FY-17 reduced 51.2 percent to Rs 1,278.73 million from Rs 2,620.21 million in FY-16.

    Other Expenditure in the current year increased 54.1 percent to Rs 3,841.70 million as compared to Rs 2,492.55 million in fiscal 2016.

  • Viacom18 surprised its female employees with cupcakes on Women’s Day

    Viacom18 surprised its female employees with cupcakes on Women’s Day

    MUMBAI: On International Women’s day Viacom18 thought of a great way to surprise their women employees- with Cupcakes! They walked into their offices to be greeted with a bright and cheery box that held a sweet surprise. A welcome sugar rush early in the morning.

    Media & Entertainment is always stressful with pressures 24/7 and this gesture was much appreciated by the women. The menwere given 5 placards with taglines like Red Bull Lady, Invincible Rock, Sweetest Soul, Brightest Star etc. When you work with your colleagues for long hours people’s personalities shine through. They had to give their favorite women colleagues the sayings that applied to them. In this way they wereable to express their appreciation for their colleagues with personal messages at the back of the cards.  

    Given the fact that Viacom18 network has a multigenerational workforce, women of all ages enjoyed this gesture. Whilequirky is part of the Network’s DNA they didn’t have to think too far out of the box as Cupcakes win every time!

  • Viacom18 surprised its female employees with cupcakes on Women’s Day

    Viacom18 surprised its female employees with cupcakes on Women’s Day

    MUMBAI: On International Women’s day Viacom18 thought of a great way to surprise their women employees- with Cupcakes! They walked into their offices to be greeted with a bright and cheery box that held a sweet surprise. A welcome sugar rush early in the morning.

    Media & Entertainment is always stressful with pressures 24/7 and this gesture was much appreciated by the women. The menwere given 5 placards with taglines like Red Bull Lady, Invincible Rock, Sweetest Soul, Brightest Star etc. When you work with your colleagues for long hours people’s personalities shine through. They had to give their favorite women colleagues the sayings that applied to them. In this way they wereable to express their appreciation for their colleagues with personal messages at the back of the cards.  

    Given the fact that Viacom18 network has a multigenerational workforce, women of all ages enjoyed this gesture. Whilequirky is part of the Network’s DNA they didn’t have to think too far out of the box as Cupcakes win every time!

  • Budget 2014 is an opportunity for M&E to grow: Sudhanshu Vats

    Budget 2014 is an opportunity for M&E to grow: Sudhanshu Vats

    The new government’s overall inclination towards development brings with it great optimism about the new Budget (2014) for me – not just as the head of an organisation but also as a representative of the Media and Entertainment industry. In fact, the Media & Entertainment industry experienced a whiff of fresh air with the new I&B Minister’s thoughts at the recent CII CEO roundtable. Eminent colleagues from across the industry raised key issues, which Shri Javadekar patiently heard and responded to – a sign of the new government’s strong preference for accountability and focus on governance.

     

    The industry is poised for exponential growth during the term of this new government – almost doubling every year. It has the potential to provide almost six million direct jobs and also add to the economy as an aid to tourism.

     

    After the extensive discussions and dialogue with colleagues and members of this bustling industry, I’ve penned some suggestions that can fuel the industry to reach never-before levels of growth.

     

    Accountability

     

    Accountability is the one thing that lacks processes in the Media & Entertainment space. A single-window clearance mechanism for permissions, especially for films and events, will motivate the industry to concentrate more on revenue streams rather than go around in circles. The wish list would remain only partially addressed without queries and licenses becoming more time-bound.

     

    And while we expect an evolution in policies, keeping them clear and consistent with foresight at the back of the mind constantly, future action can be planned at the organisational level with greater certainty and generate opportunities for employment in large numbers, thus contributing significantly to the economy.

     

    Pragmatic Policies

     

    The media and entertainment industry is currently valued at USD 20 plus billion with significant growth potential. We’re poised to catapult to the next level with a few pragmatic policy reforms. Additionally, the M&E industry has the capacity to generate almost six million jobs directly and also further boost sectors like tourism.

     

    More Spending Power

     

    Rationalising Income Tax slabs is a key step towards taking the burden off the consumer’s shoulders. He will have more money to spend on his favourite means of recreation – entertainment.

     

    Tax Abatement

     

    And while we are on the topic of the Media & Entertainment industry and its role in the economy, one of the biggest losses I believe that it incurs is almost the one-third of revenue that it gives away in taxes and multiple licence fees over and above recurring commissions. These need to be re-evaluated and rationalised. In anticipation of GST implementation, entertainment and service taxes can be lowered to a more reasonable level.

     

    Considering the premise of development that the new government has adopted, we expect a growth oriented budget, laying down a clear and consistent long-term roadmap. These steps that I have attempted to chalk out, will only allow the entire industry to collectively entertain India even more, even better!

     

    (These are purely personal views of CII National Committee on Media & Entertainment chairman & Viacom18 Media group CEO Sudhanshu Vats and indiantelevision.com does not subscribe to these views.)

  • FICCI FRAMES 2014’s theme is “Media and Entertainment: Transforming Lives”

    FICCI FRAMES 2014’s theme is “Media and Entertainment: Transforming Lives”

    MUMBAI: FICCI FRAMES 2014 (March 12 -14, 2014, Mumbai) will be a landmark event marking the 15th chapter of the convention which has always been an unparalleled platform for the exchange of ideas and knowledge between individuals, countries, conglomerates.

    As in previous years, the world’s media & entertainment industry will be in full attendance at FRAMES 2014 with nearly 2000 Indian and 600 foreign delegates, encompassing the entire sector. FRAMES 2014 will have plenary and parallel sessions on a broad spectrum of issues covering the entire gamut of media & entertainment like Films, Broadcast (TV & Radio), Digital Entertainment, Animation, Gaming, Visual Effects, etc. over a period of three days.

    The theme of FRAMES 2014 will be “Media and Entertainment: Transforming Lives” with the aim being highlighting the role of media and entertainment as a vehicle for social change.

    The convention will discuss reforms and regulatory endeavours along with working on ideas on socially meaningful and quality content. The inaugural keynote will be by FCC Commissioner, Mr Ajit Pai who will touch upon content in the regulatory landscape in the US. Mr Raghav Bahl, Controlling Shareholder and Managing Director of the TV 18 Group will make the theme keynote address on Media and Entertainment as  a Vehicle for Social and Economic Change. Mr. Aroon Purie , Chairman India Today Group,  to give a Keynote on The Print Industry: Surviving All Odds in the digital era . Justin Osofsky, VP – Media Partnerships, Facebook will talk on Establishing Social Networks as the Primary Online Forum for Public Conversations .

    Apart from the core theme, FRAMES 2014 will focus on the key avenues for monetising the sector such as Talking Numbers: Hard Facts about M &E’s Economic Contribution; TV 3.1: Content, Strategies and the Future of Broadcast; De-bottlenecking the Regulatory Hurdles, The Changing Dynamics of the Film Exhibition Landscape.

     Stakeholders and thought leaders such as Uday Shankar , CEO , Star India Pvt. Ltd & Chairman FICCI Entertainment committee , Mr. Karan Johar , Chairman , FICCI FRAMES , Mr. Punit Goenka , MD& CEO , Zee entertainment Enterprises Ltd. , Mr. Sudhanshu Vats , Group CEO Viacom 18 Pvt. Ltd. , Mathieu Bejot Executive Director , TV France International , Roger Fisk, Presidential PR Guru from President Obama’s electoral campaign; Jim Egan, CEO, BBC Global News, Andrew Lack, Chairman, the Bloomberg Group; Bill Livek , CEO Rentrak ,  Kim Dalton, Chairman, Asian Animation Summit; Hiromichi Masuda, Vice Chairman Business Committee, The Association of Japanese Animations,Todd Miller, the CEO of Celestial Tiger Entertainment (A Lionsgate joint venture) and former head of Sony Pictures Television, are slated to speak at FRAMES 2014.

    FRAMES  2014 has been planned with a some off-the-cuff sessions to broaden the conventional boundaries of the summit. Sessions such as “Internet & Democracy: Interloper or Catalyst? ” ., “The Film that Changed My Life”; The Indian Electronic News Media: On Fine Balance?” promise to be intellectually stimulating and thought-provoking.

    A discussion specific to attracting the influx of private equity for the sector has been planned and film funding is a subject which will be deliberated upon. A Producers’ Masterclass wherein acclaimed producers like Andy Paterson and Guneet Monga will discuss the overarching role of a producer in taking a film from start to finish. Masterclasses with acclaimed Hollywood VFX supervisors such as George Murphy , Oscar winner and Chief Creative Officer, Reliance Media works , Jon Cowley and Ben Murray  of Prime focus world are also in the offing. The cinema exhibition sector will be dealt with at a very interesting session Cinema Advertising & Alternative Models: The Changing Dynamics of the Film Exhibition Landscape. Creative sessions on “The Past Present and Future of Good Cinema: Film-making for a Cause” and “Cuts so Deep: Are we Sacrificing Creativity at the Altar of Morality” will focus on meaningful cinematic content.

    Australia to be the partner country and Karnataka is the “Partner State” at FICCI FRAMES 2014 . Mr. Srivatsa Krishna , Secretary Deptartment of IT , BT & S and T , Govt. Of Karnataka will touch upon how Karnataka has been doing much to promote growth and development of its M&E industry

    An innovative feature of FRAMES 2014 will be the FICCI-INK Salon, an exclusive by-invite only daily hour-long session with speakers from the Indian part of TED talks. The BAF award show and networking evenings will as usual be the hallmarks of the after-hours.

    Media and entertainment’s role in public consciousness as an umbrella which shapes and sustains opinion and juxtaposes fact with utopia is an objective which FRAMES 2014 intends to reinforce.

  • Reliance MediaWorks teams up with VenSat Tech Services

    Reliance MediaWorks teams up with VenSat Tech Services

    MUMBAI: In its endeavour to expand its VFX, CG and animation capabilities and create a studio in Chennai that will cater to the growing needs of the Media & Entertainment industry, Reliance MediaWorks has partnered with Chennai-based VenSat Tech Services.

    VenSat, a global media and entertainment company founded by Satyanarayana Mudunuri and Venkatesh Roddam, offers creative services for the international motion picture, television, home entertainment, gaming, and mobile entertainment markets.

    In respect of projects related to Reliance MediaWorks, VenSat will set up a VFX, CG and Animation team in Chennai. This strategic alliance provides Reliance MediaWorks an immediate direct presence in the South India and the ability to quickly and efficiently expand its capabilities in response to growing demands.

    Reliance MediaWorks CEO Anil Arjun said, “This alliance is a strategic win for Reliance MediaWorks for a number of reasons. First, VenSat gives us direct presence in Chennai, and enables us to strengthen our reach in the Southern film market.

    “Second, VenSat‘s creative and technical expertise adds depth to our existing VFX, CG and Animation capabilities, offering unrivalled speed, innovation and scale to Indian filmmakers.”

    Said VenSat Tech Services Pvt Ltd. executive director and co-founder Satyanarayana Mudunuri, “We are delighted to be making this strategic alliance announcement with Reliance MediaWorks which is a name to reckon with in the entertainment space globally and the timing is right.

    This alliance will allow Reliance MediaWorks and VenSat to leverage and complement our combined strengths and competencies to create meaningful synergies that would augment the market place as both companies have very high operating standards.”

    As a part of this strategic alliance, VenSat Founder and Executive Director Venkatesh Roddam would join the Reliance MediaWorks management team as the CEO of the entire Film and Media Services division.

    While VenSat is best known for having worked on the highest grossing films in India in 2010 and 2011 namely Dabangg and Robot, Bodyguard and Ra.One, Reliance MediaWorks has recently completed work on Zindagi Na Milegi Dobara, The Dirty Picture among others.

  • Zee Sports can break even in 18 months time: channel head

    Zee Sports can break even in 18 months time: channel head

    NEW DELHI: Zee Sports, the youngest of the sports channel beaming into Indian cable homes, could breakeven within 12 to 18 months time, according to a senior channel executive.

    “These are early days, but the channel can possibly breakeven in 12 to 18 months time as its revenues increase. Especially now that cricket will be aired,” Zee Sports business head Himanshu Mody told Indiantelevision.com today.

    Part of the Subhash Chandra-promoted Zee Telefilms, Zee Sports believes it has struck gold after bagging the telecast rights of one-day cricket that India will play against Pakistan, Australia, England and West Indies over the next five years on neutral venues.

    Zee has invested approximately Rs 300 million in its sports channel started over a year back.

    Zee Telefilms bagged the telecast rights for approximately $ 219 million, beating the likes of ESPN Star Sports, Sahara One Media & Entertainment and Nimbus.

    According to Mody, a cricket property like this is definitely going to drive up the subscription revenues and could be leveraged in different ways on various platforms over the five year contract period till 2011.

    “In the months to come by, Zee Sports will be a power to reckon with,” Mody said with glee after this victory, having failed twice earlier to bag big ticket cricket properties, which included the domestic Indian rights for four years that was snared by Nimbus for $ 612 million.

    Asked whether the investments could be recovered as there’s an overdose of cricket all round on television, Mody said the present rights for 25 one-day matches were different from other rights and had its advantages.

    “What we have bagged is one-day cricket, which has more value (in terms of viewership) than five-day Test cricket. Moreover, India-Pakistan clashes mostly go down very well with viewers and advertisers alike,” Mody explained.

    Zee Sports is also keen to share the terrestrial telecast with the Indian pubcaster Doordarshan and doesn’t think such simulcast would hit its revenues — advertising or subscription.

    “We are keen to share cricket with DD and will offer the best deal possible,” Mody said.