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Tag: movies

  • Marathi cinema in high gear

    The Marathi movie market is set to enter into a new phase of growth as Star, Reliance ADAG and the Sakaal Group plan to launch general entertainment channels in this langauge space.

    Marathi film producers suddenly see a fresh demand for their content, which was being consumed largely by Zee Marathi and to a lesser extent by ETV Marathi.

    Satellite TV telecast rights for Marathi movies have surged, encouraging producers to increase their production pipeline. “The average purchase of these rights for the popular movies have more than doubled,” says a trade expert who is involved in such transactions.

    There are also more outright purchase of movies and at higher prices. Zee Marathi is said to have spent Rs 4.6 million for the perpetual rights of Tingya, much more than a hit Marathi movie would have cost two years back.

    Some movie rights holders are hanging on to their library with the expectation that prices will further escalate. Says Video Palace owner Nanu Bhai, “I have some 30 Marathi superhit movie rights along with Everest Video. But we are in no hurry to sell them. Let prices further increase.”

    Top five grosser of 2007-08
    Films Total Collections
    De Dhakka RS 60 million
    Saade Maade Teen RS 45 million
    Valu RS 30-35 million
    Tingya RS 15 million
    Aamhi Satpute RS 12.5 million

    It is only after 2004, when Shwaas (which literally means breathe) gave a fresh lease of life to Marathi cinema. Even though Shwaas was sent to Academy awards, the producers had to hunt for money through charity shows to present the film there.

    Post Shwaas, however, the market started expanding. The awareness about Marathi cinema increased considerably with creativity in subject, promotion, distribution and technical advancements. Also in Maharashtra, the state government’s rule that every multiplex has to run Marathi movies has changed the fate of this market.

    But what has fuelled the growth is the entry of corporates into the market. The roster includes Zee Entertainment Enterprise Ltd (Zeel), Reliance and Mukta Arts.

    Zee has been the most aggressive player. Zeel director of regional channels Nitin Vaidya had earlier told Indiantelevision.com that it would be investing RS 300 million for a slate of 15 Marathi movies in two years.

    Mukta Arts has also chalked out its production plans. The Subhash Ghai promoted company released Sanai Choughade on 20 June; another flick Prarambh is slated for August release.

    With the pumping in of more money, the industry is going to see more movies being made. In 2006, around 45 movies were released in theaters while the number rose to 67 in 2007. In 2008, more then 80 movies are expected to hit the theatres.

    The size of the market is expanding. Says Akhil Bharatiya Marathi Chitrapat Mahamandal president Ajay Sarpotdar, “The Marathi movie market (theatrical) was not more than RS 50 million in 2006. It managed to touch RS 160 million last year with the government‘s screening rule for multiplexes. In the first six months of this year, we have already crossed RS 220 million and expect to over Rs 350 million by the end of the year.”

    The major problem with Marathi cinema was its promotion and distribution wherein a lot depended on word of mouth publicity. Even though a Marathi movie costs not more than RS 6-7 million, producers did not have enough cash to put in money for promotions.

    That game is fast changing. As per market estimates, Zee Talkies has invested over RS 15 million in promotion of De Dhakka, a budget earlier unheard of. The movie has reaped over RS 60 million in collections so far.

    “With the kind of publicity we can do through our network, we already have an advantage over our rivals. We are bullish about the Marathi movie market,” says a senior executive in Zee Talkies.

    Mukta Arts is also planning to invest in scripts, marketing and promotion. “We are in search for good scripts as content is what drives the audience,” says Mukta Arts CEO Ravi Gupta.

    Adds senior Marathi producer Mahesh Kothare, “With the right kind of money, promotions and marketing, the Marathi movie market is growing very fast. Corporatisation is an added boon as they can easily spend over Rs 10 million in promotions.”

    Being made on as low as Rs 6-7 million budgets, the business dynamics has turned favourable as Marathi general entertainment channels grow in number and are keen to lap up movie content.

    Sums up Galgale Nighale‘s director Kedar Shinde: “We are currently in the first gear. Very soon, we will be driving in high gear.”

  • Multiplex owners demand uniform entertainment tax

     
    Multiplex owners demand uniform entertainment tax
     

    MUMBAI: The multiplex owners in India are looking forward to uniformity of entertainment tax in the union budget 2008-09. The other things they are insisting on are decrease in service tax on lease rentals.

    “The rates of entertainment tax are amongst the highest in the world. Most states levy an entertainment tax ranging from 30 to 50 per cent of ticket sales. The average rate of entertainment tax across the world is around 10 per cent of ticket sales,” said E City Ventures (Fun Republic) MD Atul Goel.

    Multiplex owners are awaiting abatement of 67 per cent for service tax on rent so that effective tax rate reduces to 4 per cent.

    They feel as the high rate of entertainment tax still exists, the domestic cinema exhibition industry also pays sales tax on food and beverage. Multiplex owners say that they are forced to pay multiple taxes which include property tax on real estate that it occupies, service tax on advertising revenues, show tax on the number of shows held and income tax on net profits.

    Cinemax India CFO Jitendra Mehta says, “We await abatement of 67 per cent for service tax on rent so that effective tax rate reduces to 4 per cent.”

    Echoing Mehta, Goel adds that the service tax introduced on lease rentals for cinema exhibitions will virtually kill this industry, and, in turn, the entire film industry. He thinks that the entertainment tax structure needs to be re-looked to benefit the overall cinema infrastructure.

    Multiplex owners are demanding a one indirect tax regime. They insist that indirect taxation of goods and services should be integrated into the Goods and Service Tax (GST). Besides entertainment tax on cinema tickets should be integrated into GST.

  • Virtual library of cultural assets coming up in DD

    With just five permanent staff members working out of a temporary accommodation, Doordarshan Archives is digitally archiving intellectual property wealth that took roughly Rs 7.5 billion to create, and is steadily moving towards online selling of DVDs and then, video on demand.

    The picture can be bewildering seen from any angle, whether it is the temporary office space, human resources or technology, or the sheer value of the property that is going on the digital archives server, with meta data tags attached to each piece of DD production.

    Kamalini Dutt, director (archives) tells indiantelevision.com that a value could perhaps be put, but then truly speaking it is invaluable.

    An old tape being cleaned of fungus and dust in the DCB machine using hi-tech precision machines

    “I have got, for example, footage of a 35-year-old sarod maestro Amjad Ali Khan in black and white, then I have a 45-year-old Khan playing sarod and now I have a 55 or 60-year-old Amjad Ali Khan… so it is really the life journey of a maestro,” Dutt says.

    Likewise, there are programmes of all the vocal, instrumental, dance, painting, sculpting, theatre maestros, everything (barring those destroyed due to time loss) that DD has gathered since the early 1960s, when DD productions started.

    No wonder that when the DD Archives team made a recent presentation at Golden Prague festival where classical music programme across the world were presented, there was a massive curiosity level from world experts.

    “They all asked about where these things were available and how they could access this,” said Dutt, initially the lone crusader for digital archiving in DD, before she was joined by Director (IPR) Ved Rao.

    Insiders in the archives project – all infected with the virus called ‘save our cultural heritage programmes‘ – say that between the two of them, Rao and Dutt have been responsible for this project that involves state of the art technology.

    These include the latest, digital restorer machine that can restore programmes from any format used in the past to the format presently being used in DD, and record them digitally to be made into printable master copies.

    The process takes an enormous amount of time per programme, starting with creating the meta data tag.

    Old legacy tapes even in such conditions are cured and then digitised for archiving

    This is a form that is filled up first by hand, mentioning everything about a programme, from the title to the gist of it, the producer‘s name, time, format, when it was created, right down to the stack where it is stored.

    Another set of persons are making hard copy of transcripts, some others giving new sub titles, mostly in English which creates more value for a programme by enlarging the audience for it.

    There is a specific room Rao shows around the system, where there are computer stacks, which can be shifted on rails and gives great flexibility to storage space, a room where 18 Celsius temperature and a specific humidity level is maintained at all times.

    Rao, however, often sounds despondent: “Many centres have not sent their legacy tapes,” she laments, and adds that of the oldest programmes, only 170-odd hours could be preserved.

    Rao says Dutt has issued a dictum that whatever is left or the old as well as whatever is being created new, “not an inch of tape can be thrown away”.

    “We have told them, you do not have to store, just send everything to us and we shall store them.”

    The staff strength is also bewildering: just five permanent ones.

    Says Dutt: “We are just five. We are using the services of old, senior and retired DD hands who had been editors and programme executives and they are being outsourced the work for editing and other such work, because they have knowledge of that.

    Experts on arts working at meta data centre for previews of old tapes

    “But for computerised work, we are outsourcing the work to youngsters, who are good at handling computers and more adept at using software.”

    The talk veers back to value, and Dutt says that DD gives roughly RS 250,000 to RS 400,000 to an independent producer for a 30-minute programme, so one can calculate that 250,000 programmes on archiving at the moment could have cost roughly RS 7.5 billion to create, but that is not the real value.

    Dutt explains: “As a programme sits in my library and gets older, it grows in value. For instance, where will we ever get another Bismillah Khan? So, truly speaking, the value of those programmes we have on Khan sahib could be enormous.”

    Many of the programmes have in fact been made into DVDs, and sold at RS 395 per copy, and the hottest selling have been shows by MS Subbulakshmi, Beghum Akhtar, Sufiana Music and Bismillah Khan.

    CD copies come for RS 295 and audio tapes for RS 195 a piece, and these are available at all DD Kendras, as well as other places.

    Ved M Rao, Director, IPR, with Afghan delegates at the compacter section

    Dutt informs that almost all the top music companies, including Music Today, had come seeking collaboration when this RS 30 million a year project or archiving started and when RS 7.5 million out of that was apportioned for creating DVDs and selling them.

    “Surprisingly for some of my colleagues, though not surprising to me, we have made a profit on that,” Dutt says.

    Rao adds that some of the best selling products have had three or four print runs of 3,000 copies each run.

    Dutt says about the collaboration: “We did not want that, we wanted our own exclusive stuff, which could be repurposed for any specific use, and we are thus competing with private channels offering flexi time to viewers.

    Though Dutt, a diminutive powerhouse of an official, did not set a date to it, the next step, she said, would be making available such programmes for DD‘s VoD set up that is likely to come up soon.

    Soon, DD would be creating a website for this archive and the selling of DVDs online would be taken up, Dutt informs, but says that selling other footage would not be possible because of DRM (digital rights management) problems.

    Typically of a pubcaster mindset, DD is not just raking in moolah for itself, but offering the benefits of the sales to the creators as well, including the artists, and Rao as Director IPR, is working out the value of programmes and the creators‘ shares with them.

    The idea is to have a virtual library with meta data tags on each programme, which then can be used commercially, instead of storing programmes that are used once in three or four years.

    “See, all these were made with public money, so why should we just keep it and not make it available to them at an affordable price and let them enjoy a higher level of aesthetic experience,” Dutt says.

    However, though there is a large market, Dutt admits that it is this issue of higher level of aesthetic experience that keep the market contained within some elite sections who have the taste, exposure and desire to experience that aesthetic, but that elite happens to be global and expanding, as the eyes on India expands exponentially.

  • DVD market on the cusp of change

    The DVD market in India is witnessing major change. The prices of both hardware and software has become highly competitive and a host of online rental players have emerged. But what impact will low prices have on the rental business and what pricing strategies are home video firms employing? This story offers a look at the current situation of the home video market in the country.

     

    First off, there is no denying that the DVD revolution is possibly the biggest thing that could have ever happened to movie buffs.

    Today, six cities including Bangalore, Delhi, Mumbai, Chennai, Hyderabad, Kolkata account for 70 per cent of the DVD player penetration in the market.

    According to Federation of Indian Chambers of Commerce and Industry (Ficci ), a PWC report states that there is a huge upspring in plasma TVs and home theatre surround sound systems, which has boosted the demand for home video products like DVDs and VCDs.

    The home video market in India – largely the rental market – was estimated to be about Rs 4 billion in 2005. Over the past two years, it has grown by about 15-18 per cent per year. The share of the home video market is estimated to be six per cent of the total film-based entertainment business. This is expected to grow to about 14 per cent by 2010, driven by the shorter-release windows in the theatrical business.

    India has approximately 15 million DVD players and this figure is expected to touch 70 million by 2010, which translates into a vastly untapped video rental market.

     

    The present market scenario

    The global broadcast technology market is worth $11 billion and is set to grow at 11 per cent with the pace being set in Europe, Middle East and Africa. This fact was highlighted at Broadcast Asia 2007, which is Asia’s biggest industry event held in Singapore from 19 -22 June 2007.

    The country has over five million home video and DVD subscribers and current penetration levels are expected to grow 31 per cent, according to the PWC report.

    The home video market is going to almost double from Rs 830 crore in 2007 to Rs 1,700 crore in 2010. The drastic cut in the price of DVDs has allowed DVDs to be sold through supermarkets as well. In the international scene, the total market has grown to an estimated 8.8 million subscribers at the end of 2006, with total estimated rental revenue of over $1.2 billion.

     

    Adams Media Research and Netflix internal estimates project that the total market will have more than 20 million online subscribers in the next four to six years. The DVD rental business is in the season of mergers, the latest to happen is the biggest fund raiser in the rental space Seventymm has acquired 100 per cent equity of the oldest rental service agency Madhouse.

     

    Moser Baer in the entertainment basket

    One player that is looking to change the dynamics of the home video market is Moser Baer. Its entry into the home entertainment market was marked by its move to slash the prices of DVDs and offer regional titles. This positioned the company among the top contenders and the biggest guns of retailers entering this market.

    Its set to change all the dynamics of the entertainment market and the problems conflicting the industry like high prices of DVDs which had given the rise of steadily flowing of piracy and high fragmentation in this business.

    Companies are releasing video content in DVD and VCD formats to ensure the highest quality standards, but also to significantly reduce costs. Moser Baer‘s fully licensed titles will be available at Rs 28 for an Indian film VCD and Rs 34 for an Indian film DVD – price points that we said before, will not just redefine the Rs 650 crore ($150 million) home entertainment business in the country, but also put it on the path to a four- to five-fold growth in the next three years. Of this, Moser Baer aims to have at least 50 per cent market share.

     

    One of Moser Baer‘s recent releases

    Pricing strategies: Moser Baer will also be releasing non-film titles in the following areas at different price points, including VCDs at Rs 49 and DVDs at Rs 69. Two VCDs will be priced at Rs 89. All English movie titles will be marketed (VCDs at market price of 49 and DVD of Rs 69). The company is also planning to launch single VCDs of songs in the range of prices starting from Rs 20 in all key languages.

     

    Distribution: Moser Baer is also setting up exclusive branded outlets (owned or through franchise) at about 300 locations, in addition to alliances with large format stores established by various retail ventures in the country. They have established a network of carrying and forwarding agents in all the states of India.

    Other players slashing prices: Shemaroo & Eros

     

    Other players in the market include the veteran Shemaroo. The firm recently introduced three new pricing categories for some products starting at Rs 66. Shemaroo VP Hiren Gada says that the last time DVD prices were reviewed was in 2004. He adds that the firm anticipated the competition in terms of prices and more players a few years back which is why it has sought to diversify itself.

    More price cutting has come from Eros International which has slashed its entry price on DVDs, cutting it down from around Rs 150 to Rs 99 to keep in tune with the dynamics of the market.

    One of the films in Shemaroo‘s low price catalogue

    Eyeing the potential of this sector, Reliance Entertainment, Nimbus and Percept are among the other players looking to enter the home video space with competitively priced products. Reliance is investing $ 100 million in its home video division Bigflicks. This has both an online and an offline component.

    The online component will mainly target NRIs. The offline component will consist of retail stores across the country. By the end of this financial year there will be 100 stores in 10 cities. In three years there will be around 500 stores in 50 cities. They will function as neighbourhood stores. They will offer DVDs for rental and sale. While the pricing strategy has not been decided upon Bigflicks COO Kamal Gianchandani says that it will be competitive.

     

    No drastic price reduction: Excel Home Video

    This animation film has done well for Excel

    For some of the other existing firms it is still a ‘wait and watch‘ strategy on the pricing front. Excel Home Video which focusses on Hollywood is not going in for huge price reduction anytime soon. Excel Home Video MD M N Kapasi says that it is not a question of high price or low prices.

    “So far the introduction of low price discs has not affected our business. We will reduce the price of our products marginally to push up volumes but it will not be a drastic reduction.

    “Demand is a function of content. You can have cheap hardware but if the software is not there a firm will not find takers. At the current price level of our DVDs and VCDs we are satisfied with the volume of business. We will be doing a study now to find out what the consumer expects. Is it a low price or is it quality they seek? Depending on that we will take a decision on how we go ahead.”

    No need to plunge prices: Sony Pictures

     

    Sony Pictures which has a home video unit is also adopting a wait and watch strategy. The firm feels that its price points are reasonable and with that price point it claims to compete successfully and at the same time make profits.

    A spokesperson says that there is no sudden need to plunge the prices when consumers are willing to make a price value comparison on a particular film. At a super low price one will bleed. It is worth noting that Moser Baer has an advantage. Since it is a disc manufacturer it can bring prices down more effectively than the competition.

     

    The webslinger has proven to be a winner for Sony Pictures on the home video front as well

    It is expected by the industry that the advent of low priced DVD players and some software at a reasonable price will help convert VCD buyers to DVD buyers thus helping to educate the consumer about the better quality and features of DVDs over VCDs. VCDs are still likely to sell in large volumes for some time though, as DVD hardware penetration in rural India is still not very high.

     

    Moreover, with the advent of lower cost DVDs, new distribution channels are likely to open up, thereby expanding the availability of DVDs more than they currently are. Several players are betting on home videos becoming a FMCG product being sold through multiple retail points like super markets and departmental stores apart from traditional music and video stores. Also, with the expansion of organised retailing in India, over the next few years, home videos are likely to get wider distribution reach.

    However, the key issue is what impact will low pricing of DVDs have on the rental business?

    As of now the rental business whether online or offline is yet to see the full impact of the low cost DVDs. It might not get affected in the short term as most of the renting happens for new Hindi and international releases mostly priced between Rs 299 – Rs 599 for DVD and Rs 149 – Rs 299 for VCD. The price reductions are usually introduced for older movies, classic titles. However, if prices for international and newer Hindi products also fall drastically in the next three years, as has been predicted by Moser Baer, then the rental business will certainly get affected.

     

    Industry players however don’t feel that low cost DVDs will have a major impact on cinema revenues. That is because theatre viewing is a different experience with the family as an outing. Video cannot replace that experience. Further, several films have a great impact on the big screen, compared to the small screen.

     

    Theatrical business will generally not be hit as there is a hold back period of 2-10 weeks before the original home video can be launched legally by the home video rights owner. Normally, the film completes its theatrical run by then.

     

    The Online DVD rental markets

     

    Coming to the fast expanding online DVD rental business that poses competition to the DVD market, include players such as Madhouse, Seventymm and Clixflix among others.

    Reasons for splurge in the Online DVD market

     

    • Internet penetration in India is growing not only in the urban areas but also in B and C class cities which has made possible the entry of this market in rural and small areas. The number of individuals who accessed the internet has increased marginally from 10.8 million to 13.0 million in 2006.

    • Local rental stores provided the customers with only limited editions of popular bollywood flicks, nothing besides that.

    • Cheap content and poor quality makes it hard for the consumer to get good quality DVDs at rental stores.

    • The organised movie rental business has checked the rampant problems of pirated versions.

    The leading players include:

     

    Madhouse (www.madhouse.in)

    Madhouse, which rents out original and legal disks, is among the earliest players in the sector. It claims to be the first rental service Indian company to offer movie rental services accessible via a multi-channel model. This includes customer interactions through the web, SMS, phone and kiosks. Founded in December 2004, Madhouse is headquartered in Delhi. The rental service was launched in the tri-city region of Chandigarh, Panchkula and Mohali in May 2005.

    Madhouse was acquired by Seventymm this year.

    Seventymm (www.seventymm.com)

    With a funding of Rs 100 million from US based Draper Fisher Jurveston and 32 crore funding from Matrix Partners Seventymm is currently based in Bangalore, Delhi-NCR, Hyderabad and Mumbai. It was launched in 2005.

     

    Cinesprite (www.cinesprite.com)

    Cinesprite.com, which was launched in 2006 with nearly 10,000 titles, is a DVD rental site that offers subscription plans ranging from one to 12 months with an activation fee of Rs 150 and Rs 250 depending upon the package the viewer chooses.

     

    Moviemart (www.moviemart.in)

    Movie Mart, a new comer in this space was launched this year. The website is also a subscription based DVD movie rental service providing its members access to a library of motion picture, television and other film entertainment. The member can choose from their subscription packages and also offers unlimited validity period for four DVDs at a time at a price of Rs 999. These prices are key in combating the falling prices of software.

     

     

    Catchflix (www.catchflix.com)

    Catchflix online rental service was launched in may 2006. It covers Bangalore, Mumbai, Delhi- NCR, Bhubaneswar, Hyderabad. It offers a 50 DVD package at a cost of Rs 2899.

     

    Clixflix (www.clixflix.com)

    Launched in October 2004, Clixflix plans to expand nationally. It offers a package of six DVDs a month at Rs 399 and unlimited DVDs at Rs 799. This is a Mumbai based rental agency.

    Bigflicks (www.bigflicks.com)
    This is Reliance‘s online video service and will mainly target the NRI market. It has launched its on-demand movie download service. It offers films in Hindi, Marathi, Tamil, Telugu, Punjabi and Kannada that will be available for either download to own at a fee or for free streaming. The firm says that its USP is that it is the first and only online movie library with the largest regional content. The download price ranges from $2 – $15.

    BigFlicks.com will offer 2000 titles in the first year and there will be revenue sharing arrangements with the content owners. The site is also looking at acquiring Indian television content apart from looking to connect with subscribers in America, UK, Canada, Middle East, Australia and South East Asia. The site aims to have an easy interface and navigability. It offers downloading speed with bit rates of 1500 kbps.

     

    Conclusion

    Thus, it is not surprising to see why online DVD rental chains and retail majors have forayed into sales and distribution tie-ups apart from acquiring copyrights from content DVD manufacturers. The market is booming and online DVD rental companies are looking to expand through tie-ups with retail chains.

    The Indian entertainment industry is worth about $5.2 billion out of which the film industry alone is worth about $1.5 billion. Even though the online DVD rental players have a tiny market share presently, they are planning to grow rapidly and expect to reach $100 million within the next five years. DVD content owners are experimenting more with packaging to make the product more attractive as well as providing added value features.

  • Cinema activation gets active, brands cash-in

    A giggling gang of girls queues up at the popcorn counter at a plush multiplex, discussing a high-profile celebrity split.Cash in hand, they also have their eyes glued to the LCD screen above the counter which is looping a TVC of the show ‘Popcorn News‘ on Zoom. While the girls decide on caramel, salted and spicy flavours for popcorn, the TVC announces a new flavour of popcorn – ‘Bollywood Masala,‘ a show which gives the latest gossip on the glamour circuit.

    Call it smart positioning or an imaginative touchpoint with the target audiences, brands today are using the multiplex foyer for a array of activities. From kiosks to LCD displays, promotional leaflets to opinion polls, cine advertisers are slowly creating communication points in line with a film‘s release.

    The Trend

    The growth in the number of multiplexes across the urban landscape, coupled with hoards of consumers flocking to these destinations for their weekend dose of entertainment gives brands the advantage of interacting with their target audiences. This trend is gradually taking shape across the country and media experts are bullish about its prospects.

    “Brands are trying to coincide their promotional activities with the release of films just to cash in on the footfalls. It is typically centred around the weekend, when the occupancy levels are higher at the multiplexes,” says P9 Integrated CEO Navin Shah.

    Says DGM cinema activation Abhijeet Thakar, who created multiplex activation during the recent Yashraj Films release Jhoom Barabar Jhoom, “People spend an entire day at malls and cineplexes on weekends, since it‘s a great place to hang-out. Under cinema activation, direct interaction is possible between the brand and the consumer through a touch-and-feel experience. A lot of merchandise can also be given away in the process to our consumers.”

    ICI Paints had promoted its Velvet touch range of paints during the release of big-budget releases like Kabhi Alvida Na Kehna and Salaam-e-Ishq wherein along with distributing promotional merchandise, a contest was also run. Winners had the opportunity to get their homes painted in ICI Deluxe Velvet touch paints.

    “The on ground activities at multiplexes have helped us in getting additional branding for products through sampling and converting customers into using our product. Post the activity, we‘ve experienced about 30 per cent growth in Gujarat and 55 per cent growth in Delhi both of which are our cream markets,” says ICI Paints marketing manager Rajat Johri.

    Adds Zoom Television head marketing Shiv Kumar, “Multiplex activation is part of the media today, which is allowing us to create an engagement model with the consumer. Compared to the traditional medium, here we are tailormaking the brand communication message in tune with our target audience.”

    Non-traditional media on the rise

    A natural spin-off in the increase of cinema activation has been due to the clutter for advertising on television. Lintertainment communications director Harshad Bhagwat states, “On television, ad avoidance levels have gone up as high as 70 per cent since audiences generally tend to switch channels during an ad. Brands are therefore looking at alternate mediums for gaining more visibility.”

    The platform for associating with films at multiplexes comes hardly as a surprise considering the popularity of cinema in the country. Multiplex activation is on the rise with the mushrooming of malls and multiplexes all over the country. “We have slowly reduced our dependency on other mediums like television and radio in our marketing plan. We‘re currently devoting about 7.5 per cent of our marketing budget on cinema activation,” says Johri.

    Kumar says that Zoom is currently devoting about 15 per cent of its marketing budget for cinema activation and the numbers are expected to rise.

    Why cinema?

    Part of this trend can be attributed to the growth of cinema into a more organized sector than it was before. “Producers are now seeing results. It‘s becoming a more legitimate business with more accountability coming in through multiplexes on aspects like occupancy and footfalls amongst others,” offers Shah.

    Agrees Johri, “Earlier, monitoring the degree of visibility that the brand garnered through cinema activation was difficult. But now we have a count of the number of footfalls and we receive reports of auditorium occupancy. Things have become more professional.”

    It also offers certain ‘spikes‘ during the year, wherein brands can plan in advance. “The Diwali season is a peak period when we see big-budget releases and occupancy levels are higher. We are looking to invest in such big releases of the year,” says Johri, whose range of paints will cash in on Karan Johar‘s and Kareena Kapoor‘s releases this year. Both the stars incidentally are their brand ambassadors.

    Largely though, brands building up activation models around a film‘s release are often treated as an event. “Cinema is a religion in India and the footfalls during big releases are extremely high during the weekends. We‘re trying to use their presence in the multiplex foyer to take the brand communication forward,” says Thakar.

    CalvinKare‘s Spinz range of deodarants are positioned around the theme of dance and youth. In their recent activation, patrons for Jhoom Barabar Jhoom were asked to match steps with two dancers dancing to the title of songs from the film. P9 Integrated, which executed the campaign, says the response was excellent. CalvinKare product manager Sanghamitra Rath agrees, “We‘ve used cinema activation for the first time and the response has been very good. We‘re using this campaign in different metros across the country.”

    Range of brands investing

    The genre of brands using cinema activation has seen a sea change over the last few years. “Earlier you had the liquor, colas and two-wheelers using the activation very effectively – both on-screen and off-screen. Now we have a range of products right from FMCG goods and consumer durables that undertake sampling and merchandising exercises at multiplexes,” says Shah. Lately, however, a lot of media brands are entering the foray as well. “Radio stations, TV channels, news channels and even satellite radio like Worldspace are increasingly making use of the medium,” he adds.

    Furniture line Godrej Interio recently involved themselves in multiplex activation, wherein the complete range of Godrej Interio office and kitchen furniture was put up on display. An official from Godrej Interio stated, “We‘ve tried to make the best out of a big film‘s release. Our target audiences are present here in the multiplex and they would be interested in checking out our new range of furnitures.”

    Measuring results

    But how do agencies really measure the effectiveness of cinema activation? Is there a recording medium which is reliable to ensure the number of people that have seen the communication message of the brand ?

    Thakar says, “There is no defined measuring medium as with television. Statistics are measured by the reports of the occupancy of the auditorium. Multiplex owners are a main source of information on strategic placements in the multiplex. We also send our independent teams who conduct a research on high-traffic areas in the multiplex.”

    Bhagwat, however, states, “Advertisers are still hesitant to use this medium because unlike television, there is no reliable measuring medium. Therefore we‘ve set up our own team at Lintas, called Intellect, which will study how strategically we can place brands under cinema activation.”

    Shah has a different point of view. He says, “Cinema activation is more of experiental medium, hence conventional forms like eyeballs, reach frequency and cost per thousands would not be the correct yardstick to measure the medium. However, I believe tangible results are still available and efficacy of the medium is high.”

    Engagement and experience with target audiences

    Brands however agree on getting a direct interactive platform with their target audiences, thanks to cinema activation. Rath says, “We‘re doing a lot of sampling activities wherein our main Sec A 15+ audiences are regular patrons at the movies.”

    Multiplexes are also high catchment areas for the product sampling. “Audience profiles are such who are more open to trying out new products, giving feedback and information on user preferences and telling us about their consumption habits. Moreover they have the purchasing power,” says Thakar. “Therefore extensive database collection is done due to our interaction, which further adds on the measurability of the medium,” he adds.

    The marketability factor

    But what determines a marketer‘s inclination towards a particular film? “It‘s the marketability,” says Shah. Elaborating, he adds, “Star cast is another crucial factor but the legacy of the producers to use brand activations is also important. Cinema activation offers an alternate revenue stream for them as well, apart from the box office collections and a host of movie rights.”

    Bhagwat says that multiplex owners have also benefited from cinema activation since, it offers them a revenue source just in case the film‘s collections are not impressive. “At the multiplex, fortunes change every Friday. Through cinema activation, exhibitors have a back-up just in case the film‘s collections are not up-to-the mark,” he says.

    A recent example of smart activation was for the film Cheeni Kum wherein samples and an information booklet of Sugar Free was distributed along with the movie tickets. “It was a smart move, considering that during the interval patrons in the auditorium can look into the booklet and read about the product,” says an analyst. “Due to the sampling, people looked forward to seeing the product placement in the film as well,” he says.

    The future

    Cinema activation is among the several marketing opportunities that that producers are willing to engage in. “Producers are keen to pocket the table profit before a film‘s release. This includes marketing, theatrical, overseas and music rights. This helps marketers bring in a number of brands like it happened for Krissh, wherein over 10 brands were brought on-board for the film,” says an industry observer.

    Marketers, therefore, are expected to bank on the marketability of the film to help brands benefit out of it. The reason why brands are likely to invest more in the medium is the cost-efficiency of the medium. Group M general manager content and entertainment Rajeev Berry says, “Brands are looking at reaching the consumer in a cost-efficient and impactful manner. With big budgets and big stars, cinema is getting bigger in this country and brands would want to establish a synergy with these films.”

    Even cine advertisers who are involved in on-screen activation are looking to involve themselves in off-screen activation in the coming days. QMedia business group manager Ashish Mathur for QCine advertising which worked on blockbuster Sivaji says, “I feel that a combination of activation and on-screen activity can work wonders for a brand. A great example is the award winning HSBC activation clubbed with the on-screen advertising done by Ogilvy Action.”

    By the scheme of things, multiplex activation seems to be a new entry into the media plan for marketers. With the growth in retail and burgeoning size of the movie business, footfalls are likely to increase in multiplexes. However, what remains to be seen is whether brands and advertisers can make cinema activation more engaging and experiential through innovative activities rather than mere kiosks or displays in showcasing promotional material.

    Moreover, with stringent measuring techniques more inroads are expected into analysing whether cinema activation helps translate into sales and branding growth, rather than mere sampling. The customer‘s activity will determine the success of cinema activation.

  • Devotional Music: Another money making segment in the Indian music business

    The Indian music scenario keeps changing all the time. Where Bollywood ruled the roost earlier, gradually indi-pop grounded itself and with its buoyant marketing attracted the listeners. The remix trend closely followed making way for lounge and fusion music. Even with such changes dominating the Indian music market, the devotional/religious genre of music has maintained its stability for more than a decade now.

    Times Music AVP – A&R Rajeeta Hemwani says, “To fight stress, everyone turns to God and that is working out well for us. Starting off with chanting of Gayatri mantra 108 times in a single CD, around a decade ago, Times Music broke the barriers of conventional Bhajans which was the only visible religious music on stands. Times Music managed to sell more than a million copies then; after which the demand for religious music, away from Bhajans and kirtans, started showing up.”

    Statistical Count:

    According to IMI’s Savio D’Souza, “Most of the national label target the 40 major cities of India. There are innumerable minor and independent labels that people aren’t aware of. Many of them even produce albums in regional languages. For the major labels, shlokas and mantras sell the most since they cater to the upper middle class of the population. The other labels, who target the lower strata of society, know that bhajans and kirtans on the cassettes sell the most.”

    IMI gets just 5 per cent in revenue and 15 per cent in volume from religious music. Of the total Rs 4 – 5 billion music business in India, religious music accounts to Rs 250 million only and makes up for 10-15 per cent of the market share presently.

    Adds Hemwani, “For Times music, 40-50 per cent of the revenue is generated from religious music. For the past seven to eight years, the demand for devotional music is escalating. Today, it’s more about mantras; like the mantras for peace, for the well being of a new born, for pregnant ladies, for rejuvenation, relaxation and its likes.”

    Today, people demand spiritual over devotional under the religious genre. Sales by genre statistics show that where film music accounts for 70 per cent, religious music has only 4 per cent sales. Distribution of music by genre reveals new film music contributes to 40 per cent followed by old film music, which accounts for 21 per cent and then comes devotional music, accounting to around 10 per cent of the total distribution.

    D’Souza further adds, “As far as value is concerned, today religious music contributes to Rs 250 million. This can by no means become Rs 5 billion.”

    For smaller labels like Sagarika Music Pvt. Ltd. things are very different.

    Adds Sagarika Music director Sagarika Bam, “Religious music falls in two categories, devotional and spiritual. We usually are linked with the niche segment. 20 per cent of our revenue is generated from religious music. With our Bengali and Marathi albums, we account for around 8 per cent of the market in India.”

    The Scope for Independent labels:

    With around 10,000 publishers and approximately 40,000 new titles every year, the domestic market is indeed a large market. Now when many temples and other independent labels are coming up with their own religious music records; a confident, Music Today assistant marketing manager Roli Chaturvedi adds, “These independent labels don’t look threatening as we have been in the market for a long time now and the audience can relate to us better than other labels that are creeping up.”

    Hemwani also comments, “I know, many of these temples and

    small time labels are invading this segment, but one can’t deny the presence of a brand. Cost conscious people would rather purchase music from non-established labels, but people looking out for quality don’t compromise. In fact, when Siddhivinayak came up with their aarti and Shlokas, Times Music marketed it for them.” New devotional releases have to reach the target audience well on time. Hence, not many minor labels with a limited reach are able to sustain their leadership and generate profits.

    Diversity of the Genre:

    About the variety this segment offers, Chaturvedi says, “There are a couple of common mantras that sell the most like the Gayatri mantra and Hanuman Chalisa. But there are so many unexplored mantras that we, as a music label, are trying to come up with. They are exceptional and unconventional shlokas. Majority of people follow the common shlokas, but there are many as well who demand these unconventional shlokas which not many labels are aware of. We are working on offering more and more variety in the exceptional category.”

    Piracy Problems:

    Pirates has not spared even this genre of music. But, there exists a differential pricing policy here. While the target audience for film music is bulky, there is a comparatively low demand for devotional music. Hence, these albums are retailed at higher prices by national labels. Also, the demand for devotional music tends to be more or less festival-oriented. This has a strong bearing on pricing policies. Shares Gupta, “Due to piracy, the recovery cost becomes problematic. For Universal, not more than 10-15 percent of revenue is obtained from religious music after cutting down the money lost due to piracy.”

    Bidding the Money:

    To prove the kind of money this segment is generating, Hemwani adds, “The music industry is creating awareness about such beautiful music present on the stands, so we know that the market share for religious music will either remain stable or increase further. It can by no means decline. In fact, today this is such a prolific segment to make money that Yash Raj Music, which was earlier just ‘Bollywood’, is now doing an album on Sai Baba.” Sagarika Music follows a different pricing strategy altogether as compared to national labels. For them, working on Marathi and other regional language albums is of more importance, as the lower strata of society demands more music in such languages.

  • NBC’s Sci Fi channel inks multimedia deal with Virgin Comics

    NBC’s Sci Fi channel inks multimedia deal with Virgin Comics

    MUMBAI: Sci Fi Channel, an NBC Universal network, is teaming up with Sir Richard Branson’s Virgin Comics to create a co-branded multimedia partnership called Sci Fi/Virgin Comics.

    With five new comic book titles serving as a jumping off point, Sci Fi/Virgin Comics will develop fresh properties that integrate the spirit and vitality of both brands. Delivering innovative, multi-platform projects, original concepts will be considered across all mediums from publishing, film and television to digital and gaming.

    The announcement was made today by, Sci Fi Executive Vice President and general manager Dave Howe and Virgin Comics CEO and publisher Sharad Devarajan at New York Comic Con, the season’s pop culture and comic book event.

    The first Sci Fi/Virgin titles, distributed by Diamond Comics, can be expected to hit shelves later this year, informs an official release.

    “Virgin Comics and I are delighted to collaborate with Sci Fi and the rest of the NBC Universal family,” said Sir Richard Branson, “to create stories that will inspire a new generation of thinkers and dreamers throughout the world.”

    “Sci Fi/Virgin Comics marks an important step in our strategy to extend the Sci Fi brand into new cross-media platforms. We’re thrilled to be partnering with Virgin Comics to create exciting new titles, characters and stories that can live beyond the pages of the comic book,” added Howe. “Virgin is the perfect brand to help us connect with the youth audience around the world.”

    “With Sci Fi we are changing the face of the comic book industry – seamlessly developing characters and stories for books, television, online and other media,” said Devarajan. “Together we are creating stories as innovative as the ways consumers will get to experience them.”

    Utilizing the global creative and synergistic resources that exist both at Sci Fi Channel and Virgin Comics, the partnership will aim to attract some of the biggest names and talent from the worlds of comic books, television and movies. Sci Fi and Virgin Comics will bring together a multimedia, creative editorial board with members representing comic books, television, movies, digital, gaming, licensing and merchandising.

  • Digital online content revenues to touch €8.3 billion in 2010 in Europe

    Digital online content revenues to touch €8.3 billion in 2010 in Europe

    MUMBAI: Revenues from online content will reach €8.3 billion by 2010 in Europe, a growth of over 400 per cent in five years, says a new study by media analyst Screen Digest for the European Commission’s Directorate General Information Society and Media.

    The study entitled Interactive Content and Convergence: Implications for the information Society had two major objectives.

    Firstly, to assess the potential growth of digital content including TV, movies, games, radio, music and publishing content across new distribution platforms and technologies, such as interactive TV, broadband and mobile. Secondly, and most importantly, to identify the current and potential economic, technical and legal obstacles that might hinder the exploitation of digital content in Europe.

    The research found that the spread of broadband, the roll-out of advanced mobile networks, and the massive adoption of digital devices mean that online content is on the verge of becoming mass market, especially in the sector of music and games, where the proportion of revenues made online already represent a significant percentage of overall income. Although the European market is growing steadily, technological, economic and legal challenges were identified that need to be addressed to ensure European creative industries can maximise the potential economic and social benefits.

    The research will be a contribution to the communication on ’Content Online in Europe’s Single Market’ which should be presented later this year by Viviane Reding, European Commissioner for Information Society and Media.

    The report highlights some of the key obstacles to developing online content and assesses their market impact up to 2010. These include:

    Technology: Although broadband access is spreading in Europe there are still wide ranging differences between countries. The average broadband penetration per capita was 17 per cent at the end of 2006, with 30 per cent in Denmark, 21 per cent in the UK and only 2.5 per cent in Greece. For mobile services, the relatively slow uptake of 3G in Europe (11 per cent at end-2005), and the sometimes confusing pricing and structure of data tariffs are obstacles still to be overcome.

    Copyright. Issues here include difficulties in accessing content due to the definitions of new media, exploitation rights, terms of trade and collective management of rights at international level all have the capacity to negatively impact access to content. However Screen Digest’s view is that many of the difficulties could be solved through business and legal practice in the medium to long term.

    Digital piracy still significantly limits potential online revenue and dissuades rights-holders from making content available online. An answer to this is efficient Digital Rights Management systems (DRM) to manage and protect digital content.

    As the market matures, evolving business practises will tackle many obstacles but some others may require national or EU legislation to provide legal certainty for consumers, content providers, service providers and technology providers.

    Screen Digest senior analyst Vincent Letang says, “This was a fascinating consultancy brief for Screen Digest to be part of. The scope of the project was huge: over the nine months we interviewed 180 entities in Europe, including content and technology providers, network operators and regulators. In addition we carried out significant research and analysis across 25 European countries and many media sectors. We are very proud that the research we have done will contribute to the European Commission’s policy on digital content and help companies in the EU understanding the potential for revenue and jobs creation in the region.”
     

  • Star looks to give mobile users a Plus experience

    Star looks to give mobile users a Plus experience

    MUMBAI: In an effort to tap into the burgeoning mobile sphere, Star India is launching the platform Plus by the end of February.

    Star is hoping this initiative will help users go beyond using the mobile for text and voice. It is being positioned as a solution for consumers to catch up on television, sports, movies, shop and bank on the go.

    Speaking on this, Star Mobile Entertainment senior VP Viren Popli says, “The mobile service is a particularly valuable tool for those who do not have access to the net. They can access the digital world. You do not need to change your phone. You need GPRS to download the application for free. There will be a monthly fee of around Rs 2 for the content. Of course ringtone downloads or purchases will be billed separately.

    “Once a user downloads the application he will see nine buttons. These are TV, Sports, Music, Movie, Lifestyle, Community, Downloads, Info Services and Help. TV has a TV guide. We also offer mobisodes of our shows. This is basically a summary of the episode that has just aired. You can also get wallpapers. As far as information services are concerned we have a few partners. For banking we have tied up with HDFC. It allows you to access your account, ask for a cheque book.”

    Popli adds that in the travel, segment there are two partners – Travelguru and makemytrip.com. One can buy tickets and make hotel reservations. Star has also tied up with Infomedia for the Yellow Pages service. Here you can search for phone numbers. For astrology there is a tie-up with Dinesha Speaks. The sports section has a news desk for cricket, hockey, golf, tennis etc. One can also get ball by ball updates.

    In the movies section one gets clips, news and reviews. For music the firm has tied up with Universal Music. One can get information on new releases, classics etc. One can listen to clips before deciding whether or not to make a purchase. Popli adds that as of now five to 10 per cent of mobile phones in India have GPRS. Hopefully in two years time with services like this launching 30-40 per cent of phones will have GPRS.

    He says that the service took six to seven months to set up. One criteria was that the user should not have to change his/her phone. Also the interface needed to be easy to use. Right now the interface is in English but Star is looking at making it available in other languages as well. Going forward Plus’ aim will be to add to the depth and breadth of the services it offers.

    For instance, in TV in the future one might get other channels’ schedules and have clips from there besides the Star bouquet. That is one reason why Popli says the name Plus was given to the service to separate it from the Star brand name. The firm is also examining the possibility on introducing mobile blogs, mail as time goes on.

    In the Lifestyle section one can get information on cars courtesy a tie up with Overdrive. Then there is a tie-up with T3 for gadget news. Computing information comes courtesy Chip. Design tips will be provided by Better Interiors. Fans of audio can learn what is happening thanks to a tie up with AV Max. If one wants to buy a car for example one can put in a price range and then see what is available. A review will be there and then one can ask for a test drive.

    The Community section will offer Midnight Chat on Channel [V] as well as shopping. One can also blog here.

  • YouTube deletes Japanese videos

    YouTube deletes Japanese videos

    MUMBAI: Video content sharing site YouTube has deleted nearly 30,000 files over copyright concerns after being asked to do so by a group representing Japan’s entertainment industry,

    Media reports state that the Japan Society for Rights of Authors, Composers and Publishers found 29,549 video clips such as television shows, music videos and movies posted on YouTube’s site without permission.

    Yotube now shows more than 100 million video clips per day. YouTube’s worldwide audience was 72.1 million by August, up 2.8 million from a year earlier, according to comScore Media Metrix.