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  • MSM ups the ante for promoting IPL

    MUMBAI: With just a month and a half left for cricket’s biggest extravaganza to begin, Max, the official broadcaster of the Indian Premier League (IPL), has embarked on an extensive marketing campaign that is aimed at improving viewer stickiness and increasing the engagement level.

    The theme of the marketing campaign is ‘Sirf Dekhneka Nahi’ which calls upon viewers to celebrate every boundary hit or fall of wicket like they would do in a stadium.

    While executives at Multi Screen Media refused to talk about the extent of marketing spends, sources say the broadcaster has earmarked Rs 220-250 million for the pan-India marketing campaign.

    The marketing spends have gone up by 20-25 per cent over last year, the source added.

    Almost 60 per cent of the marketing budget will be devoted towards television and print, while the remaining 40 per cent will go towards mediums like radio, outdoor, digital and on-ground activations.

    The broadcaster is also evaluating whether or not to advertise during the India-Australia Test series which will air on Star Cricket.

    With dance being the key feature of the campaign, the broadcaster has roped in ace choreographer Farah Khan who would feature in a series of television commercials.

    The campaign drawn from the insight that cricket is not just a game but a passion will see Farah asking viewers to support their favourite team by grooving to the signature IPL tune composed by the music director duo of Vishal and Shekhar.

    MSM COO NP Singh said that the idea behind the campaign is to raise the engagement level around the IPL by engaging cricket fans through various touch-points like television, radio, print, digital and outdoor.

    “It became a passive viewing habit, so we wanted to increase the level of participation among the viewers. Therefore the campaign theme ‘Sirf Dekhneka Nahi‘. The same theme will be used across all our marketing campaign whether it is print, outdoor or digital,” said Singh.

    According to him, dance has a universal appeal and will help the broadcaster in breaking through the barriers of age and language.

    “Dance has a universal appeal and it cuts across all age groups and demographics. The idea is to make IPL successful through this campaign by engaging viewers,” he added.

    The marketing budget for the IPL has gone up vis-?-vis last year. However, Singh refused to talk about it.

    “Like every year, we will pull out all stops to promote the IPL. We will use all our network channels to push the marketing campaign. This time our network is much bigger than last year,” Singh asserted.

    Max’s creative agency JWT has created a series of three short films, three dance instruction videos and one big grand film featuring the choreographer.

    The three short films will showcase women, working professionals and families celebrating the IPL together with Farah Khan teaching them the signature dance steps. These campaign films will lead to the grand film which will highlight how IPL binds cricket with dance and celebration.

    Singh feels that the IPL ratings are still holding strong at an average of 3.5 TVR compared to an all-time high of 5.51 TVR that it achieved in 2010 when the tournament returned to India.

    “My belief is that the IPL ratings have stabilised at a strong 3.5 TVR level, despite the fact that the number of matches have gone up. My feeling is that the ratings this year will be better than last year. The marketing campaign that we have launched will help us attract viewers to watch the IPL,” he averred.

    IPL’s format coupled with the presence of a galaxy of cricket stars both Indian and foreign is what will deliver ratings for IPL, believes Singh.

    MSM EVP and Business Head of Max Neeraj Vyas revealed that the broadcaster will go for large-scale activations on digital medium. The strategy is to go viral as the campaign lends itself to the digital medium.

    “While television will be the main stay of the campaign, we will also have activations on mobile and internet as song and dance lends itself to this medium. For example we will ask users to upload videos as to how they will celebrate when a boundary is hit or a wicket falls,” he says.

    MSM SVP and marketing & communications head of Max Gaurav Seth said the thought behind the campaign is to make viewers excited about the IPL which would lead to greater stickiness.

    “The message is not to just sit at home and watch it passively. What we are saying is like you celebrate in the stadium when a boundary is hit, why not do that at home,” Seth elaborated.

    Seth said that the brief given to the agency was to create a campaign that reflects India’s passion for the game. He also feels that unlike cricket IPL is more of a family phenomenon and therefore the campaigns are designed in a manner that it appeals to each member of the family.

    “The campaign is designed in such a way that it showcases IPL as the ultimate sports and entertainment property in India. Tell me one property that delivers that so much value to advertisers and viewers,” Seth maintained.

    For the record, MSM has roped in three sponsors for season 6 of IPL. Vodafone and Pepsi have come on board as co-presenting sponsors, while Tata DoCoMo is going to be an associate sponsor. MSM is looking at two co-presenting and eight associate sponsors.

    The IPL this year will be simulcast on Max, which has been the home of IPL for the last year five years, and sports entertainment channel Six. The IPL will be available on a High Definition (HD) feed in English and a Standard Definition feed in Hindi on Six and a SD feed on Max.

    Featuring nine teams and 76 games, the IPL will be held from 3 April to 26 May.

  • Affle’s Ripple ad network to power advertising on Sony Liv

    MUMBAI: Affle Group, a leading international smart-media company, has partnered Multi Screen Media (MSM) to exclusively power all advertising during the Sony Liv launch phase through its ‘Ripple‘ rich media and video ad-network.

    As a part of this partnership, MSM would employ Affle‘s Ripple ad network to serve all video and mobile advertising on Sony Liv across all screens (Mobiles, Tablets & PC‘s).

    Sony Liv is MSM‘s new Video-on-Demand service, which will provide viewers viewing experience of their favourite shows from the Sony stable – Sony, Sab and Max.

  • MSM launches multi-platform VoD service Sony Liv

    MSM launches multi-platform VoD service Sony Liv

    MUMBAI: Multi Screen Media (MSM) has taken the plunge into the digital space with the launch of its multi-platform Video-on-Demand service, Sony Liv.

    Targeting the youth, Sony Liv will serve as the online destination for content from the Sony stable – Sony, Sab and Max. The Sony Liv application is available globally for free online on Sonyliv.com, for download on major app stores – iTunes and Google Play (Android).

    Apart from enabling viewers to view current shows, Sony Liv will also gives them a chance to go back in time and watch past episodes of shows from Sony’s programming archives on Liv Classics. Liv will also showcase a large archive going back 17 years of movies and special events like Stardust and Filmfare Awards.

    MSM CEO Man Jit Sigh said, “Liv is aimed at providing entertainment on the go for young India on the move. With the launch of this user friendly and highly interactive application, Liv is slated to change the way this nation consumes entertainment. It is a great platform for brands to enhance their Engagement & Interactivity with today’s young consumers.”
    MSM‘s VoD service has three main features – Mood Wheel, My Q and Liv Guru.

    With Mood wheel, viewers can search for videos based on mood/genre and time preferences. The My Q feature enables the registered users to create their own playlists of their favourite videos, and enables them to watch it across devices, with a single log on experience.

    The Liv Guru feature is Sony’s Loyalty Program for loyal fans and rewards engagement. This feature builds on a loyalty points system on audience interactions on Liv. These points will eventually enable the viewers to win goodies, gift hampers and show set-visits.

    “Innovation is the bedrock of business at Sony and our latest offering, Sony Liv reiterates our commitment to engage and interact with our audience in a whole new way. Through Liv, we want to strengthen our viewership in the digital space and provide the best entertainment preferences to our audience,” said MSM COO NP Singh.

  • Multi Screen Media firms up three sponsors for IPL 6.0

    MUMBAI: Multi Screen Media (MSM) has already roped in three sponsors for the sixth edition of the Indian Premier League (IPL). It has been learnt that Vodafone and Pepsi have come on board as co-presenting sponsors, while Tata DoCoMo is going to be an associate sponsor.

    While not talking about specific deals, MSM president revenue, licensing and telephony Rohit Gupta said that the broadcaster is looking at selling out its entire ad inventory for the IPL this year, unlike the previous edition where it held on to ad rates to let go a small portion of its commercial airtime. “We have rationalised our rates by 10 per cent. While last year we had sold out 85 per cent, this time we want to sell out everything. Our revenue will not be affected.”

    MSM is looking at two co-presenting and seven to eight associate sponsors. “Sponsors will take up around 60 per cent of the ad inventory. For ‘Extraaa Innings‘ we will have seven sponsors,” Gupta added.

    Vivaki Exchange CEO Mona Jain believes the IPL ratings have stabilised. “They are not zooming but neither are they falling dramatically. The rationalisation of rates makes the IPL more affordable. I don’t think that the recent poor performance of the national Indian team will have a negative effect on the IPL‘s viewership. The IPL is a different ballgame where you have city based loyalties,” she says.

    In terms of companies likely to come on board, Jain points out to consumer electronics companies and telecom. Auto is also expected to come on board, though that sector has been facing a tough time. “They may come in at lower outlays, but I still expect them to participate. The economic slowdown could have an effect in terms of the outlays that different companies are willing to commit. It is, however, too early to talk about that possible impact,” she points out.

  • ‘Max will see 15-20% ad growth this year’ : Executive Vice-President and Business Head of Max and Sony Mix Neeraj Vyas

    ‘Max will see 15-20% ad growth this year’ : Executive Vice-President and Business Head of Max and Sony Mix Neeraj Vyas

     

    Neeraj Vyas, the Executive Vice-President and Business Head of Max and Sony Mix, is excited with the way the year went for Max, the Hindi movie channel from Multi Screen Media (MSM) stable.

     

    As the head of Max and Mix, Vyas has two challenges before him. The first is to take Max to the top position. The channel‘s strategy will be to acquire as many blockbuster movies as possible but at the same time remain judicious with the acquisition prices.

     

    The second challenge for Vyas is to grow Sony Mix, the music channel that was launched last year to widen the bouquet. The key for Mix, which operates in a tough genre, is to differentiate itself from other music channels through its programme offering while at the same time control costs to become viable.

     

    In an interview with Indiantelevision.com‘s Javed Farooqui and Urvi Malvania, Vyas shares his thoughts about the two channels and the way forward.

     

    Excerpts:

     

    Has the rise of Star Gold and the launch of its sibling channel affected the existing movie channels?
    Strictly from the ratings point of view, barring the first two months and post the IPL, it has been good for us. If you look at the ratings that were available three weeks back for the first 8-9 weeks, there is very little difference between the three of us – Star Gold, Zee Cinema, and Max. We have also had a successful movie acquisition year.

     

    How dependent is Max on big-ticket movie acquisitions as it has a premium positioning?
    Movie channels are completely driven by the library they have. Max has managed to have a premium image. It‘s completely by design and not by default because it‘s the way we want the channel and it‘s the way we present the channel. It‘s everything that you see on-air — the entire movie experience and our packaging. We want to set ourselves apart from others and hence did Extra Shots last year, a property where you get your trivia during the break and also put that into a half-an-hour show. This year we did something called Dirty Khabar.

     

    Does the premium positioning help Max get higher ad rates?
    It has helped us to extract premium from the advertisers. There are a lot of lifestyle brands, a lot of brands that are very conscious of the kind of environment they are seen in from an imagery point of view. If the advertisers have a choice between two or more channels, then Max will always be preferred.

     

    Did the ad slowdown have an impact on Max‘s revenues?
    There was no ad slowdown. In fact, we will see at least 15-20 per cent growth this year. The ad market for Hindi movie genre is a little under Rs 1,000 crore (Rs 10 billion).

     

    ‘The music genre accounts for about Rs 4 bn and is growing at 15% annually mainly due to new channel launches. We have set a 3- year period to break even‘

     
    What is driving this growth?
    There is money in the market, brands are being launched, and there are marketing activities. So there is no slowdown in my opinion. It (the slowdown) was a myth that was being created. At least till November or probably mid-December, we are tight on our inventory and are completely sold out.

     

    But there are broadcasters who have felt the pinch of ad slowdown?
    You tell me which broadcaster has slowed down in terms of content. Has anybody pulled back any shows? Despite no ratings, every GEC is going ahead with their biggest shows. There are two-three reality shows running on all the channels which are hugely expensive properties to produce. GECs are doing one-hour specials of their fiction shows and movie channels like us are marketing and putting more blockbusters on-air. Why would people do all these things if there was no money in the market? Give me a reason. I think the same people (who talk about a slowdown) need to answer this question.

     

    After a lull last year, has there been a spate of movie acquisitions this year?
    Yes, there was a lull. The way it (acquisition) works is if I have to acquire a film, I have to do it a good year-and-a-half before the film is released. If a producer doesn‘t get the price he wants, he waits for the box office performance of his film. Depending on the success or failure of the film, the price gets decided. The trend these days is strange as you have to acquire movies upfront. It sometimes works for you and sometimes it doesn‘t, so you have to be judicious.

     

    Has there been a price correction in acquiring movies?
    Unfortunately, what happens is that this industry is driven only by seven to eight stars. Unless we have more stars it will continue to be dominated by these 7-8 stars and it‘s essentially these men who lead the prices — the Khans, Akshay Kumar, Ajay Devgn and Ranbir Kapoor. If the price is going to be determined by these 7-8 stars, then their films will be sold at a premium.

     

    But a large number of movies go unsold?
    That is because the films of only these 7-8 guys get the ratings. For example, a film like Vicky Donor was liked by many but on television it won‘t get you a rating of even 1.5 TVR. Ratings for most GECs and time spent for channels like us come from the interiors of the country and the audience in the interiors is for films like Singham and Rowdy Rathore. That‘s the reality.

     

    Do you think acquiring movies on the basis of box office success is the criteria to follow?
    Honestly, that can be misleading. For example, Barfi is a brilliant film but put it on TV… probably it will get a rating of 2-3 TVR in the first airing, but it‘s not a movie that will get sustained ratings. Movie channels have a different model. When a film airs on television 10 times a year it has to give a certain yield and it has to give certain GRPs. As I said, the viewership comes from the interior.

     

    Zee walked out of the Barfi deal because at such high price point the monetisation becomes impossible. A correction is needed. It‘s a no-brainer. Zee‘s refusal to acquire Barfi rights was a step in the right direction. It also serves as a wake-up call for the producers or the corporates producing high-budget films. They have to get the pricing right irrespective of the box office collection because that is not connected to the success of the film on TV.

     

    Many networks have also experimented by premiering movies on GECs rather than the movie channel?
    That is a calculated gamble. Sometimes it pays off, sometimes it doesn‘t. It‘s a high-risk game because the price points of both the genres are hugely different. A GEC would trade at a certain level. Unfortunately movie channels have been under-priced since the beginning. By the time we start doing corrections, it is going to take time. The kind of money we recover on GECs will be far higher than on a movie channel. The yield is higher on GEC which is why we as an organisation have taken a decision to air certain movies like Paan Singh Tomar on Max but movies like Ek Tha Tiger and Rowdy Rathore will always be on Sony from a monetary point of view and its working for us. Once Sony has its one or two runs, it comes to Max and it really doesn‘t make a difference. What this does is safeguard our revenues and we manage our ratings better.

     

    How long does it take for a broadcaster to recover costs?
    For us it probably takes a little lesser time because we premiere on Sony. Our recovery is higher. It takes anywhere between two to three years to recover the costs. We acquire movies for a minimum of five years. We have a library of 800 movies and all of them are exclusive.

     

    Next year, IPL won‘t be there on Max since it will move to Sony Six. So what is your strategy going to be?
    We are a Hindi movie channel and we are happy that IPL is moving out. IPL moving out is a blessing for Max since we will get an opportunity to do a lot of things in the Bollywood space.

     

    Most Hindi movie channels also have dubbed content. How is it working?
    Almost 25-30 per cent of the content is dubbed and it is working. The prices of dubbed movies have also gone up although I can‘t give a number. The dubbed content adds variety to the channel. People in UP and MP don‘t know the actors but they love the action. Most of the South Indian films are in the realm of vendetta, revenge, high octane action, family values and so on. These are qualities that fit very well with the sensibilities of the heartland. Indian movies are Indian movies. People might look different but the basic ethos will always remain the same. The trend in Bollywood is that every big film that is going to come will be a remake of some or the other Southern language film. Everyone has acquired remake rights whether it is Salman Khan, Akshay Kumar or Aamir Khan.

     

    What implications will digitisation have on the genre?
    We are governed by the reality of libraries that we own. We will be able to run a large number of movies that we have not telecast. Hopefully, we will also get the opportunity to reach out to slightly more premium audiences. Also films like Silsila, Kabhi Kabhi, Rocket Singh and Saawariya which are rotting in our library will be able to see the light of the day.

     

    Coming to Sony Mix, how do you differentiate the channel from the other players in the genre?
    We decided to be a channel that is musical and understands the mood of the people. Our programming corresponds to the time of the day. So we have Surili Subah in the morning, Ishq Vishq in the afternoon, Mix Adda in the evening right up to Raina Beeti Jaaye, which is the slot for the retro songs. The promise of the channel is that we understand viewer‘s mood at different times of the day. We also went ahead and bought more music than anybody else simply because we wanted variety. So when other channels were playing the free plays and the new music launches, we went ahead and did deals with Yash Raj and Sony Music.

     

    What about your original content?
    We have a property called Mix Solos which has singers like Javed Ali, Roop Kumar Rathod and Shafqat Amanat Ali doing acoustic solos for the channel between songs. Then we have something called Mix Tippani where the channel suggests which song to listen to in which situation. We also have a show called Picture Abhi Baki hai. Here we take bytes from the actors, directors, music composers, singers etc — all with focus on the music and nothing else. It is like a sneak peak with focus on the music of the movie.

     

    These are the things that set us apart and we want to continue doing them. We want to do Harmony again which was on Sony 10 years back. We would love to revive that and have a show that has pure unplugged music. We also had a show “Yun Bana Yeh Song” with Swanand Kirkire where he explained how a song was made and took the viewers through the journey of the song. We have also brought back a lot of videos from the 90s that were huge back then. You see, you have to have a Mix of music for a music channel to be called a music channel.

     

    What is your primary TG? And what was your strategy when you launched Mix?
    Our primary TG is 15-24 age group, while our secondary TG is the 25-34 age group. We would never dilute our focus on the secondary TG. We firmly believe that you can‘t just cater to the youth which is why we have a Raina Beeti Jaaye at night. Music transcends age and we are going against the grain and not doing what everyone else is doing in the genre. Our belief is that it will pay off with digitisation and people wanting to make a choice.

     

    How tough is it to sustain a Hindi music channel?
    If you control your costs, then it is viable to have a music channel. But it is a tough game. We make use of our synergies with Sony Music and YRF. The challenge lies in how you programme your day as everyone has the same content in this genre. The brick of three songs before you go into an ad has to be so strong that it appeals to the audience.

     

    How is the revenue split between distribution and advertising?
    Distribution is negligible as a source of revenue right now. It‘s completely dependent on ad revenue. We have a wide range of advertisers come to us due to our programming. We have a broad base of viewers and though we are packaged as young and happy, our appeal is across age groups. You have to build the proposition based on the core values. The music genre accounts for about Rs 4 billion and is growing at 15 per cent annually mainly due to new channel launches. We have set a three-year period to break even.

  • IPL’s ratings make it tough for Max to post ad rev growth

    MUMBAI: The fifth season of the Indian Premier League is settling down to lower ratings than its previous edition, making it tough for Multi Screen Media to protect its ad revenue of Rs 9 billion from the telecast of the event on Max.

    The first 27 matches of the IPL have garnered a viewership of 3.53 TVR compared to 3.88 TVR a year ago, according to Tam data (for CS4+ TG, All India market). The cumulative reach has also gone down from 140 million last year to 137 million.

    Despite improvement in competitiveness with several close finishes, the ratings for the IPL have gone down. For the first seven matches, the viewership was 3.76. This further fell to average TVR of 3.65 for 16 matches.

    The IPL, however, continues to be a profitable property for MSM and cricket‘s highest revenue earner. “Media may file whatever they want to, but if you look at the top 10 programmes you will get your answer,” said IPL CEO Sundar Raman.

    According to GMR Sports marketing head Hemant Dua, the drop in viewership is a natural progression in the life of a sporting league. He also believes that people have unfair expectations from the IPL.

    “I think the IPL is maturing as a league and there will be times when the ratings will plateau a bit or will increase but overall the IPL has done well this season and attendance for matches has been good. The expectation from the IPL is high but one should understand that the ratings are strong enough,” said Dua.

    The fragmentaion of the Indian media landscape has not helped the IPL to better its ratings this year. According to MEC South Asia COO Shubha George, the IPL ratings have been in line with expectations.“We had predicted a drop in viewership, but if you look at the ratings they are still better. After all, which property will give you a viewership of 3.5 TVR and a pan-India reach,” he said.

    MSM has, however, stayed firm in not dropping the rates as it fears that it will make it difficult to up the rates next year if the benchmark is set low this time. Max has six sponsors on board who are forking out between Rs 450,000-500,000 per 10 second spot. The broadcaster has managed to sell only 70 per cent of inventory with a large part of the FCT being used for self-promotion.

    Attempts to reach MSM president network sales, licensing & telephony Rohit Gupta proved futile till the time of filing this report.

    For MSM to substantially boost its ad revenues from the IPL, ratings will have to improve. “They won‘t command a premium on average rating of 3.5. But the IPL as a property still remains a valuable proposition,” said a media analyst who did not want his name to be revealed.

  • ‘IPL is our biggest property and we can’t afford to undersell’ : MSM president network sales, licensing & telephony Rohit Gupta

    ‘IPL is our biggest property and we can’t afford to undersell’ : MSM president network sales, licensing & telephony Rohit Gupta

    Multi Screen Media (formerly Sony EntertainmentTelevision India) is beginning to enjoy a remarkable turnaround story. The Indian Premier League (IPL) has surfaced as cricket‘s most lucrative property, Sony Entertainment Television has climbed to the No. 2 position in the Hindi GEC (general entertainment channel) space andSab has grown beyond its flanking channel status.

     

    The other channels have also moved up the hierarchy. English movie channel Pix has raced past HBO and AXN has protected its turf quite strongly. Mix, the pure music channel, has had a good start. Being the only channel in that space that has network strength, it has taken up the challenge to grow the market and ramp up revenues.

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, MSM president network sales, licensing & telephony Rohit Gupta talks about how the company is going to end this fiscal with a 40 per cent ad revenue growth and a 25 per cent growth in FY‘13.

    Excerpts:

    MSM raked in Rs 9 billion in ad revenue from the IPL last year. But is growth slowing down for the property due to a fall in ratings in the previous edition of the T20 tournament?
    I won‘t comment on how much ad revenue the IPL earned last year. But, yes, there is a little bit of anxiety on how IPL will do this year as advertisers have to set aside a large outlay for advertising on it. The ratings were down last time but we are sure that with marketing buzz starting, the IPL will come back on track. There was high intensity cricket with the World Cup preceding the IPL and India going on to win the championship. This year it is a clean slate and we have already stitched a few big sponsorship deals.

    Are we looking at a below double-digit growth as is evident from the deals that you have locked in so far?
    We have got marginal increase in rates but I can‘t comment on whether we will post double-digit growth or not. Also, don‘t forget that the base is already high.

    So has IPL as a property matured?
    We grew 30 per cent last year and so the IPL has matured to a certain extent. But if ratings start climbing, we will again see high growth.

    Hasn‘t it been a tough sell so far as by this time normally you manage to close almost 80 per cent of your ad inventory?
    Yes, it has taken us a longer time as we usually keep aside 20-75 per cent of the ad inventory time for spot sells. We have sold around 65 per cent of our inventory. But we will not be dropping rates as it will set a benchmark for next year. We have worked hard to scale up the value and won‘t undersell.

     

    The IPL TV rights are with us for another five years and it is our biggest property; we can‘t afford to discount its current value. T20 continues to grow in popularity; the formats that are not doing so well are the Tests and the ODIs.
    “There is an entry barrier for new players as the cost of running a Hindi GEC is as high as Rs 5-6 billion. Which new player has that appetite after a few of them have severely burnt their fingers? This has helped us scale up revenues even as our own channels have grown“

    So the new BCCI tender for international cricket played in India will not be as valuable as it was when Nimbus held the TV rights a few years back? Will that be the calculation when Sony bids this time?
    Perhaps, Nimbus was not able to exploit the revenues as well as it could have. We have a strong ad sales team. We are a network and our distribution (as a JV with Discovery) has muscle.

    When Sony launches a sports channel, it will have to acquire other cricket rights than just the IPL and New Zealand board. Can ad rates be driven further up to support aggressive bids at higher acquisition costs for cricketing properties than their current value?
    We are not going to make irrational bids but evaluate properties from a profit perspective. We feel that some of the boards are overvalued and there will be some price rationalisation. Cricket seems to have plateaued off to a certain extent. A few years back, broadcasters could get massive rate increases . That led to steep rise in acquisition costs. We are not in that market situation today. Don‘t forget that some people have lost a lot of money on cricket.

    Are we seeing some categories of advertisers retrenching from the sport due to the current tough economic environment?
    Handset manufacturers are finding it difficult today. The auto sector has taken some hit. But though telecom service providers are under profit margin pressures, the intense competition in the sector will spur them to advertise.

    When will MSM‘s ad revenues touch the Rs 20 billion mark?
    I can‘t talk on financials. But as a network, we will post a 40 per cent ad revenue growth this fiscal. Between Sony Entertainment Television, Sab and Max we are the No. 1 network in the Hindi heartland. And in the Hindi GEC space, we have two among the top five channels. The best part is that each of them is commanding a different kind of target audience and not cannibalizing each other. We are looking at a 25 per cent ad revenue growth in FY‘13.

    How far has SET contributed to this growth?
    Our flagship channel has grown this fiscal and is today the second-ranked in the space. The rise of SET has increased our negotiating power. Kaun Banega Crorepati (KBC) is an impact property and is a strong revenue driver for us.

     

    Fiction is what we had missed out for the last 3-4 years. But it has started doing well. We have an upscale, urban skew; our male viewership is also very strong. Advertisers chase this segment and our fitment is the best.

    Will SET launch an afternoon band to create a new revenue stream or still have a primetime overhang?
    We have no such plans; it doesn‘t make a big difference to your ratings and, hence, advertisers have little interest for it. Hindi GECs have preferred to expand their primetime and it now fills up the early evening from 6 pm right up to 12 in the night; there is a lot of viewership in that time band. The market exists in the evening-to-night slot and not in the afternoon.
    Does Sab still play the role of a flanking channel or it has grown beyond?
    It is not anymore just a flanking channel; it is a proper GEC, has a strong viewership and, as a family comedy channel, is uniquely positioned. Sab has helped our network revenues to grow.
    Has the Hindi GEC ad revenue market expanded this fiscal and will we see more channel launches in this space?
    It (Hindi GEC space) has now become a game for the big boys. There is an entry barrier for new players as the cost of running a Hindi GEC is as high as Rs 5-6 billion. Which new player has that appetite after a few of them have severely burnt their fingers? This has helped us even as our own channels have grown. Even in a digital environment, it will be tough for a new player. Segmentation is not possible because GECs have to be mass and can‘t be niche due to the huge costs involved to run it.

    Is Max under pressure due to steep acquisition costs for Hindi movies?
    The Hindi movie genre, pegged at Rs 9 billion, is under pressure from revenue as well as high acquisition costs. Viewership for the genre in terms of GRPs (GRPs) is not growing. Though Max will post ad revenue growth of 15 per cent this fiscal, costs have gone up. We did intelligent buying.

     

    There is bound to be a price correction in movie buying. Though Star went overboard last year, that strategy won‘t work every year. Some broadcasters are looking at launching action movie channels keeping digitalisation in mind. We have no such plans, at least not this year. We will wait to see how digitalisation evolves. Like GECs, the consumption of Hindi movies is more mass.
    Why did MSM decide to launch a music channel when the market is too crowded?
    Though the ad size is around Rs 2 billion at this stage, it is a good genre to be in. Mix‘s positioning of capturing the various moods during the day has got accepted and we believe that we will be the leader. As a pure music channel, we are here to grow the market. MTV and Channel [V] have taken a different route and focus on reality shows as their growth drivers. While other players in this pure music space have a standalone presence, we are the only one to have the network strength and will be able to ramp up revenues.
    Isn‘t the English entertainment space getting spoilt with new launches?
    The genre is growing and is still undersold. It is an important space to be in and is sold not on ratings but on perception. AXN stands out in this genre. As digitisation grows, we will see more launches.
    MSM doesn‘t have a footprint in regional-language broadcasting that is growing the fastest. Was letting TV18 Group acquire ETV a missed opportunity?
    The acquisition has to come at the right price. We are not desperate to launch channels. We do not believe in width that does not give us profits.
  • TV ad revenue poised for healthy growth – MSM president network sales, licensing & telephony Rohit Gupta

    TV ad revenue poised for healthy growth – MSM president network sales, licensing & telephony Rohit Gupta

    2010 has certainly brought the smiles back to the television networks as it has been the best year the industry has seen in the last decade. Ad sales growth rates are expected to be close to 20 per cent, up from the original estimates of 15 per cent made after the first quarter.

    The irony is that as an industry, we need to thank the recent economic slowdown since it changed the way clients looked at their overall media spends. They made huge reductions in budgets and the scenario looked bleak for us all, with no quick recovery in sight.
     
    But for me, the big story of 2010 was the rise of non-fiction. Amidst scepticism, Kaun Banega Crorepati (KBC) returned on the small screen – with the original host (Amitabh Bachchan), a revamped format, and a new channel. The programme‘s consistent deliveries on tough weekdays at the 9 pm slot surprised many cynics who thought Sony was flogging a dead horse.

    Bigg Boss too reached its best-ever performance, across four seasons. But what caught most by surprise was the incredible opening ratings of Jhalak Dikhhla Jaa on Sony. Truly, the fiction vs. non-fiction divide is not the way we have known it till 2009. It is far more balanced today.

    In a highly cluttered environment characterised by ever-decreasing loyalty levels, the role of marketing became ever so important. If a new non-fiction show did not generate enough buzz when it launched, it stood very little chance of resurgence. However, for fiction the resurgence could come over weeks, as content evolved. Many fiction shows opened to good numbers but struggled to hold on, while many others showed consistent growth on the back of powerful content.

    Clients wanted more accountability – they needed maximum impact for every rupee spent and television was the only medium which gave them those efficiencies and better ROI as it delivered by far the lowest cost per contact across various media platforms.
    There was accountability for every spot that got aired and suddenly marketing heads and agencies started seeing television in a more positive light. Discussions shifted from a 10-second rate to more value creation. Big money shifts started to happen from other media like print, outdoor and below the line marketing budgets to television as all other media showed negative growth. Television was the only medium with a positive growth during this period. I say this with a lot of conviction as during this period I was in close contact with all the large advertisers. The fact that we close to doubled our IPL revenues in the worst economic scenario goes to show the power of television.

    The continuous growth, the C&S households and the very positive trends in the DTH business will continue to fuel this very aggressive growth in our business and help the profitability of broadcasters, in line with other industry trends. Acquiring content, whether it is sports‘ rights, movie rights, reality shows and even the basic daily fodder of soaps has seen costs reaching alarming levels. This increased profitability will eventually lead to better quality of content reaching out to the millions of viewers.

    Also, the overall increase in households every year will continue to help the industry grow at a dynamic pace for many more years, like it did for us in 2010. What was heartening to see was that overall trading levels across all genres went up substantially during the year with the exception of news.

    We are currently seeing an overall increase in the size of our market, with the Indian economy at its best and GDP growing close to 9 per cent. This has prompted large segments like the FMCG to increase their marketing spends substantially. Increased competition in the telecom industry has spurred a growth of overall spends and has also opened up a huge new category for us in the handset business.

    Other categories like consumer durables and automobiles no longer spend only at festival time, but advertise across the year. One more interesting fact is that despite the large number of channels within each genre, there is still room for growth for everyone. Next year, despite two large sports properties back-to-back (the World Cup and IPL) pulling away over Rs.15 billion from the market, other genres will continue to grow at a healthy rate. This would not have been possible a few years ago.

    A key look at some of the main genres:

    Hindi GECs – This genre will continue to grow and be the main revenue driver for broadcasters. Like last year, we expect trading levels to grow continuously based on the reach it delivers to media. There will be further consolidation here as this is an expensive business and only the fittest companies or those with deep pockets will survive.

    Impact properties will continue to propel the growth in this genre and the industry expects new benchmark rates to be set. We saw this happening on KBC this year and for our network we now have two channels – Sony and Sab- figuring in the top 5 in this genre.

    Sports – Previously major growth in this genre would only be seen when a cricket World Cup happened. This is not the case any longer and it has now become a huge genre with the coming of IPL, four to five India series and some ICC tournaments taking place every year.

    In this segment also rates will continue to grow as cricket continues to deliver on media plans. We are also seeing more brands now using Cricket as their core medium for communications. IPL has expanded the overall advertiser base for cricket as large FMCGs are now taking big positions on the league and are no longer restricted to only brands with a male TG skew.

    Hindi Movies – This has been a rock steady genre for a long time and revenues have been growing at a consistent pace over many years. In 2010, despite a minor drop in overall viewership, the revenues were not impacted. Over 80 per cent of the revenues are still controlled by the top three players -Max, Zee Cinema and Star Gold, despite some new players entering in the last couple of years. Trading levels in this genre have been traditionally low but that has changed and the genre now operates at the same levels as the GECs.

    Regional Channels – This genre has significantly consolidated its position over the last few years and now contributes close to 30 per cent of the overall revenues. Apart from the southern states which were the mainstay for this genre, Bengali and Marathi saw substantially high growth rates last year. In the south, Tamil continues to dominate, with Kannada doing extremely well last year.

    English Language Genre – This genre across the Movie, Entertainment and Infotainment segments has seen a massive growth this year which will not only continue well into the future but also be a key genre to reap the benefits of digitization. An increase in the number of homes with a 2nd television set and greater penetration of DTH in the metro markets will benefit all channels, as there is a substantial growth in the SEC A & B segments of viewers, that most large brands are now targeting. An increased affluent middle class population is a key consumer of this genre. Another big consumer of this segment in the metros is the youth which is also a key segment for most brands.

    Kids‘ Genre : This segment has not witnessed the dynamic growth seen in other segments. The leading players have been losing their audiences to GECs. This has impacted their overall revenues which have only seen a marginal increase this year. The kids‘ channels need to develop compelling content to win back their audiences in order to achieve the high growth rate they have had in the past. Herein lies a great opportunity for them to increase their stake in the pie.

    News Genre : From the quarterly financial results as well as from my personal discussions with media agency heads, it is evident that the news channels have hit troubled waters. I am sure the senior management of these channels must have had numerous brainstorming sessions over the drop in revenues. English news channels seem to be particularly badly hit and are probably heading toward negative growth. However, there is a slight possibility of the Hindi news channels posting a minor positive growth. Personally, as a keen follower of the news, I feel that the channels need to bring back quality news to Indian television and leave the entertainment to the GECs.

    Although 2010 has proved to be a great year for Indian television, one question still remains unanswered: Is television still an undervalued medium? My honest answer to this would be: Yes. Approximately 10 million new households are added each year in India, translating into 45 million new eyeballs. Yet, the cost per contact of television remains lower than other key media.

    Out of the overall 134 million TV homes, 103 million are C&S homes, of which we only get data for a mere 39 million homes. The balance data from 64 million homes remains unaccounted for. This is representative of the huge opportunity cost that we bear and it needs to be addressed immediately, so that television can get its fair due.

    Another cause for concern is the narrow vision of the channels. We tend to concentrate only on our individual businesses, and thus miss the larger picture. The immense potential of this industry continues to go unnoticed

  • ‘One individual is not capable of running IPL’s complex business ecosystem’ : Brand Finance India managing director Unni Krishnan

    ‘One individual is not capable of running IPL’s complex business ecosystem’ : Brand Finance India managing director Unni Krishnan

     

    The Indian Premier League (IPL) is caught in the midst of a storm with dark clouds hovering over team ownership issues, sources of funding, corruption and match-fixing charges.

     

    Lalit Modi, the architect of the IPL, is being accused of holding hidden stakes in some of the franchises. Income-Tax sleuths have broadened their probe into the financial details of the IPL by conducting nationwide raids cut across Multi Screen Media (MSM), World Sport Group and the franchise owners.

     

    So how will these chain of events affect the brand value of the IPL pegged at $4.13 billion?

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, Brand Finance India managing director Unni Krishnan says the risks for brand value erosion are significant if the IPL does not quickly put in place proper management systems and processes.

     

    Excerpts:
     

     
    With controversy swirling around the IPL, is there a need now to downgrade the brand?

    It is too early to take a call on this. The probe has started and we will have to wait for the government to come out with a final report on the investigations before we can comment on whether the IPL brand is fractured.

     

    But in our February report, we had cautioned that the IPL branded ecosystem is rapidly approaching an inflexion point. We had predicted this to happen in the next 6-10 months. This has come sooner than that.

     

    Surely, there are definite weaknesses regarding brand value governance and transparency, management systems and processes. But have we got a revised value of the IPL brand? Not yet.
     
     

    Does this mean that there is no brand erosion at this stage?

    The risks for brand value erosion are significant if things are not managed swiftly and the stakeholder relationships start weakening. But the truth is that the IPL is a very valuable brand created in a very short period of time. The wealth that can be created by the brand is going to be substantially significant for many stakeholders. A conducive ecosystem has to be created to move the brand to the next level.

     
     
    But will it be safe to say that the IPL brand has got tainted?

    The fault is not with the IPL brand. Some people are commenting that the property be nationalised. That is not how you run a global commercial property like the IPL. Iconic brands such as the IPL are national assets and a source of wealth creation. The question is whether we have the capability and determination to put systems and processes in place to manage one of the best brands we have produced. If we fail to do so, and all the allegations also turn out to be true, the brand will take a big knock.

     
     
    Enough dirt is thrown on Lalit Modi, the architect of the IPL. Now it looks like the man who created and built the IPL property would be thrown out. Will that not damage the IPL brand?

    Let us not confuse the individual called Modi with the business and the brand. One individual is not capable of running such a complex business ecosystem like the IPL. The need is to fix the weaknesses.
     

     
    Are you suggesting a proper balance of power system?

    As the architect of IPL, Modi has done a great job. But for such a large-scale property, we need 10-12 key members. We are not sure if the IPL governing council acts as a rubber stamp. We need to go through these questions urgently if are to create a sustainable brand property.

     

    The IPL brand is a set of complex relationships with fans, franchises, sponsors, business houses and players. This can create huge value in future if properly managed – not by one individual but by a system.

      
    ‘The IPL is a global commercial property produced from India. The unfortunate part is that if we don‘t do a clean-up action, we would be destroying it not due to any competition but because of our own action‘

     
     
    A fundamental problem being raised is that the revenues do not match the sudden flood of investments that have gone into the IPL. Are you worried about a possible nexus between the IPL organisers, the politicians, the big corporates and the Bollywood celebrities?

    There is an entry price to every business. Substantial investments are required and the revenue potential is huge. If there are misconducts like match-fixing and betting, then obviously the guy watching the game will turn off. So will sponsors. Years ago, when the first match-fixing charges were made, there was a brief period of lull. But that does not mean that cricket has died in India. The key question is governance and transparency.

     
     
    Is there inherent strength at the IPL franchise level?

    There has to be transparency at the ownership level too. Media reports are suggesting murkier deals. We don‘t know at this stage what is the truth. But sporting properties have to be run like proper businesses. Look at how the English Premiere League (EPL) has hurt itself. The club owners chased iconic players and made unrealistic purchases through a huge load of debt. Sports businesses can be lucrative but proper regulations have to be in place.
     

     Is the IPL an overheated economy?

    Is there value to be created? Yes. There are strong revenue and marketing opportunities.

     

    Most of the clubs, however, have not yet put the systems and processes in place to manage these opportunities. Take the licensing and merchandising (L&M) business which is pegged globally at $108 billion. This is not a Mickey Mouse number. Manchester United has 25-30 per cent of its revenues coming from L&M. But in India, this revenue stream is not visible in many of the clubs. We have to build the requisite bandwidth to monetise these opportunities.

     
    Is this a struggle between the old and the new India?

    As a country, we need to move away from intrigues and corrupt systems to a phase where we develop international properties. We can‘t run these properties with the same baggage as we move from a developing to a developed country. The tussle between the old and the new India will lead to pain and tribulations. But the fact is that we have created a positive property in the IPL which can provide sustainability in the long run for various stakeholders.

     

    People are seeing a new India through the IPL. This goes much more than cricketing business; it is about brand India. On a much broader level, IPL has demonstrated the coming of age of India‘s commercial prowess on a global stage.

     
    Does this remain as a dream at this stage?

    The developed world is looking at the IPL as a global property produced from India. The IPL has changed the very perception of India in the global stage. The unfortunate part is that if we don‘t do a clean-up action, we would be destroying IPL not due to any competition but because of our own action. The moment of truth has arrived for us. We have to face it with independence and courage. Can we live up to the expectations that we have created? It will be a sad essay if we don‘t deliver.

     
    How do we move the IPL up from one-third its value ($4.13 billion) to a level that it can sit along with the EPL ($12 billion)?

     

    That is only an indicative figure we have given to compare a property developed in one part of the world with another that has achieved maturity status. The IPL has hardly scratched the surface. It has a long way to go and a considerable value to realise before it lives up to its full revenue and brand potential.

     
    Brand Finance has more than doubled the brand value of the IPL from its first evaluation. What are the reasons for this?

    We are seeing a remarkable increase in revenues from broadcasting (as deal was renegotiated) and sponsorship. We have also considered the IPL‘s capability to draw in fans and viewership.

     
    Why have you upgraded Chennai Super Kings (CSK) to the top as the most valued IPL franchise (Rs 2.24 billion, up 35.5%)?

    There are 3-4 breakaway clubs. We have looked at teams who have managed cricket as a product and blended this with marketing and commercial excellence. The two performances have to be done simultaneously.

     

    CSK is beginning to put the various pieces together, synergising between their enterprise (India Cements) and their IPL business. We are also seeing Mumbai Indians show a remarkable revival this year, both in performance on the field and in their commercial activities.

     
     Why has Kolkata Knight Riders (KKR) slipped in your latest brand value estimate (Rs 2.13 billion, up 20.6%)?

    KKR topped in our first round as it has an iconic brand like Shah Rukh Khan. This gives it an undue advantage. But they are not able to exploit this to the maximum. Their performance as a cricket team has also been bad. If this trend continues over the next few seasons, then it will seriously erode the brand value of KKR.
  • ‘GEC space will see turmoil this year’ : Rohit Gupta – MSM president (network sales, licensing & telephony)

    ‘GEC space will see turmoil this year’ : Rohit Gupta – MSM president (network sales, licensing & telephony)

    2 009 is expected to be a rough year for all in media. Television is no exception. With the stockmarket collapsing and balance sheets getting battered, advertisers have become cautious and the current quarter is expected to be extremely choppy. Multi Screen Media president (network sales, licensing & telephony) Rohit Gupta concedes that clients are consistently assessing the environment and signing quarterly deals as against the annual ones earlier. He, however, is confident that Sony Entertainment will ride through the stormy times on account of the strength of its network.

     

    Indiantelevision.com’s Ashwin Pinto caught up with Gupta to find out about what lies ahead, the mood in the market, the importance of tentpole properties etc.

     

    Excerpts:

    How was 2008 for Sony in terms of revenues? What growth was managed over 2007?
    It was a successful year for us. All our channels grew their revenue. Some by 25 per cent, others grew in the range of 10-15 per cent. The other success story was the IPL. We created benchmark rates for Indian cricket before the event had even started.

    This year is expected to be challenging with the recession. What impact will this have on Sony and the television industry?
    As we move forward this year will present challenges. The key one is the meltdown. A client would cut marketing spends but television as a genre will still grow. We believe that television is the cheapest form of advertising in terms of the reach it delivers. TV gives you the best RoI and this is what clients focus on during a slowdown.

     

    Print and outdoor will take a larger hit but television will still grow. A recent report projected a 10 per cent growth which is fair. TV has been growing at 18 per cent over the last few years. While that will not happen this year, there will still be growth.

    For the IPL what is the upside being looked at this time around?
    We have established rates that are in line with what we had decided upon earlier. IPL will be a bigger property this year.

     

    Everybody including the franchisees have more time to prepare. Last time we just had 45 days to prepare. This year the hype will start after the auction ends. We will hold a meeting with the franchisees after 6 February to decide on the course of action to take. Also at the point of time there is no other major property on television.

    So you are confident on the financial performance of Sony for the IPL despite the slowdown?
    Yes! What happens during a slowdown is that the clients’ ability to take risks decreases. IPL is a proven property. There is no risk in being associated with it. People will put money on ‘sure’ properties. The IPL is one of them. Last time the IPL had an 80 per cent reach on Max.

    Have deals been closed?
    Yes! However I cannot divulge any details. Some deals are for both the IPL and the New Zealand series that comes before it. We do not have category exclusivity this time around for spot buys.

     

    This allows us to access more brands. Last time the IPL was not tested. Exclusivity was an incentive that we had to concede. By not giving exclusivity we will ensure that multiple brands can co-exist.

    But won’t it be a challenge to get many brands on-board in a difficult climate?
    You have to understand that cricket’s cost rating per rating point (CPRPs) are still holding up. The reach of the channel is key. Max does not have this issue. So we are confident of getting the desired rates.

     

    I don’t think that the rates are a problem. The challenge will lie in the outlay that a client puts on IPL. So this time around we will have smaller packages. The number of clients taking spot buys will go up. One does not have to buy all 59 games. A company can buy for ten games at a stretch. There is flexibility.
    Has the revenue split within the group changed over the last couple of years?
    I cannot give any numbers. However our dependence on the large channels is not that high. AXN and Pix are growing substantially. Max is now a very big channel in our network.

    What is the clients mood like in general?
    They are more cautious. They are adopting a quarter by quarter approach. They are not signing large deals for a year which used to be the case. For this quarter ending March, clients are being extra cautious. Companies want to show better results with this being the last quarter. So it will be tough.

     

    The key is to have tentpole properties that can be sold. You need to have a distinctive niche in the market. Clients want more accountability. As a broadcaster you need to be responsive and understand clients’ needs. You have to make sure that the client gets value back. Everything is not necessarily about a rate. The question lies in the effectiveness of the media buy.

    Apart from IPL what are the other tentpole properties coming up for the group?
    In March we are launching Operation Dikhla Jaye on Sony. This will be a directors cut where four of Bollywood’s top directors will produce shows for us. It will be a 13 week initiative and will be the first time that anybody has tried it in India. These are one hour shows. We have roped in directors like Madhur Bhandarkar, Mahesh Manjrekar, Vikram Bhatt. Then the IPL starts. Post that we will have re-launches of our big shows.

    In the GEC space are the new arrivals having any impact? Is the ad pie growing or merely getting sliced further?
    There has been growth overall. But this year since growth will be restricted there will be some slicing of the pie. The GEC space will see turmoil this year. New players will come in and others will go away. GEC costs are huge and it is a question of who will survive. The like of Star, Sony, Zee will always be around come what may.

     

    New channels will come. They may be on top for a while but the fact is that nobody is on top all the time. Clients also look at networks as opposed to channels per se. They want networks which are strong enough to withstand pressure. They want networks that have the sustaining power to ride over the tough times. Besides that you need big properties which ensure that clients look at you differently.

     

    Each of our channels is in the top four in their respective genre. Sab is number one in the second level GEC tier. Sony has managed to hold on to its share more or less. Other channels have experienced a bigger fall in the GEC space. We may not have many channels but what we have done is to focus on building them.

    How has Sony built up its client relationship management efforts over the years?
    Our focus has always been on giving value back to the client. We were the first to start a client servicing team four years ago. Then other channels started doing this. We work closely with brands to integrate them into our properties. This is how we add value that goes beyond just 10 second spots. Therefore even though there are days when ratings have not been what they should be the clients have supported us. The relationship with clients makes a big difference in terms of your ability to raise rates.

    Which categories will be affected in terms of TV advertising due to the slowdown?
    If you look at it the categories most affected by the meltdown which are real estate and retail these are not big on television. Finance was not as big on television compared with other mediums. Auto companies are shifting budgets from print to television.

    Coming back to the cricket front the New Zealand tour is the first time that Sony will air bilateral cricket. How is this event being positioned for viewers and clients?
    This is a full blown tour. India has not visited New Zealand since 2002. We lost very badly then and so this is a big challenge. There will be anticipation. In fact this is the Indian team’s biggest challenge after playing Australia twice recently.

    But isn’t the timing an issue as the telecast of the matches is very early in the morning?
    The timings are good for the T20 Games which start at 11 in the morning. The ODIs start at around 6:30 in the morning. Test matches start earlier but they are not a big revenue contributor compared with the other two formats.
    How many sponsors are being looked at?
    We have clients who are interested in both the New Zealand series and IPL. That would give them visibility from Feb till June. So we are doing special deals for them. Generally we look at six to eight sponsors.
    Are you also looking at doing long term deals with clients for IPL?
    No! We believe that the IPL which is a big opportunity is better served through yearly deals. You have the option to re-look at things.
    IPL broadened the viewer base. Has the client base also grown for cricket as a result?
    Yes! Godrej an FMCG company came on board. They do not associate themselves with cricket. Max New York Life came on board. It worked well for them. It was not the traditional clients that came on board. This year also you can expect to see some surprise companies coming on board. IPL after all changed the way TV viewership happens. It is not just the male TG that tunes in.
    Will the IPL be simulcast?
    No! It will only be on Max. We did that with the Cricket World Cup in 2007 where some matches also aired on Sab. However viewership got disrupted and the channel loses share. Then it is difficult to get viewers back.

    When HBO left there was a gap created. Is Pix now starting to fill this gap?
    Pix has made a lot of progress over the last couple of years. Pix started when there were already established players. Now it is competing. In some weeks it beats HBO. Advertisers have followed this. Pix is making investments in terms of acquisitions. The aim over the next couple of years is that in terms of ad revenues it can reach the level of HBO and Star Movies.

     

    It is pitched as a premium movie channel. It delivers in the 25+ SEC A, B category which is what a lot of marketers target. All the large brands are on it.

    How come Pix decided to air soccer with the FA Cup?
    The audience for it is similar. It is SEC A,B. We decided to offer viewers something new and extra. Matches air on the weekends and so the movie schedule is not disrupted.
    The other two major distribution bouquets have two English movie channels – a mass one and a niche one. Isn’t Sony at a disadvantage here with just one channel that does not have the latest offerings?
    It does not affect the advertising side. Channels like MGM (which is in the Star Den bouquet) do not carry ads anyway and it is dependent more on a subscription kind of revenue stream.
    What is the roadmap forward for AXN?
    AXN is doing well and has been growing at 25 per cent CAGR. You will continue to see local content. You will shortly see the AXN Action Awards. Each year you will have three shows produced in India.
    Does cost control become important in this environment though?
    This is an area we always look at. It is something that we are always conscious of and it is not as if this area has suddenly assumed importance. For us it is business as usual. One has to see the returns more carefully though.
    On the licensing front how has business grown over the past year?
    This was small four years back. However we participate more actively in trade fairs like Mipcom and we showcase more content in the form of formats there. Our shows are sold in European markets, the US. We took all our formats to Mipcom. along with other shows like Filmfare, Stardust Awards. The other aspect is the Hindi movie licensing business. We syndicate them wherever we have rights.
    Finally we are seeing channels advertise on rivals. What is Sony’s policy?
    We do not advertise on competitors nor do we accept ads from them. We accept ads from kids channels, news channels as we do not operate in that space. But you will never see us air ads from a movie channel belonging to a rival network. We are not desperate for revenue.