ITV

Tag: Multi Screen Media

  • Sony Entertainment Network & Times TV Network pull the plug on TAM; others to follow?

    Sony Entertainment Network & Times TV Network pull the plug on TAM; others to follow?

    MUMBAI: It‘s official. At the time of writing, two leading Indian TV networks, Multi Screen Media (which runs Sony Entertainment TV, Sab, Max, Pix and Six) and Times Television Network (which runs ET Now, Movies Now, Times Now and Zoom) had officially written to TAM Media Research informing its CEO LV Krishnan that they were stopping their subscription to the weekly TV ratings service from 6 June 2013. Hitherto, it had been reported that Sony was only mulling taking this step. TAM Media CEO confirmed that he had received the cessation notices from both the broadcast networks.

    MSM CEO Man Jit Singh: his network is the first to stop subscribing to TAM‘s weekly TV ratings service

    Apparently, more letters from the broadcast industry are likely to follow as many more members of the Indian Broadcasting Foundation (IBF) have decided to stop their subscriptions to TAM‘s ratings, if sources are to be believed.

    Says IBF president & MSM CEO Man Jit Singh: “There is a great deal of concern over the credibility and reliability of TAM. Seeing the fluctuations, which are happening since IPL and before that, we have decided to stop subscribing to TAM. The GEC market has shrunk by 20 per cent, which again puts a question mark over the reliability of TAM. Why would I pay for this? The entire IBF has complained and expressed their frustration. They even asked for a suitable explanation but we did not get one.”

    Both Star India CEO Uday Shankar and Times Television Network CEO Sunil Lulla refused to comment when indiantelevision.com tried to get their viewpoint on the issue.

    TAM‘s LV Krishnan: The show will go on; we will continue measuring TV viewership

    But the fact is that TV ratings in India have always been a hotly debated subject. Now more

    fat is likely to be added to the fire with this development with the doomsayers saying “I told you so, TAM‘s ratings are suspect, they are rigged and it will get its comeuppance some day. And that day has come.”

    Krishnan, however, is taking the broadcasters‘ decision in his stride. Says he: “If anybody has any concerns we are always open for discussion. Our job is to provide quality and clean data and we will continue to do that irrespective of who subscribes or not. Our parent companies have funded us in the past whether there were subscribers or not. We will continue to measure viewership.”

  • Some channels yet to join IBF ad clampdown

    Some channels yet to join IBF ad clampdown

    MUMBAI: Is the Indian Broadcasting Foundation‘s (IBF) diktat ordering its members to take TV commercials off the air waves being adhered to the T? While TV commercials have done the vanishing act from a majority of channels and networks, some were still airing them, which include regional channels.

    Multi Screen Media (MSM), Star India, Zee Entertainment Enterprises, Times Television Network, Big CBS, ETV and the Viacom18 group are among the big daddies of the TV biz which are strictly following the clampdown.

    But networks such as Discovery and Turner International India still had TV commercials running between programming, even as recently as the evening of 2 May. As had other regional players in the south. These included: the Sun Group channels (Udaya and Gemini), Raj TV channels, Maa TV, Kasthuri TV V3 (Kannada), Makkal (Tamil), Janashree (Kannada), and KF (Kannada music channel).

    Why have these channels not joined in the TV commercial ban as the IBF seeks to force the AAAI to change the advertising billings system from gross to net?

    IBF secretary general Shailesh Shah told Indiantelevision.com that hardly one in twenty channels have not fallen in line. He said that even these will comply in a day or two should the impasse continue. “Channels being uplinked from overseas have also assured compliance,” he said. At the same time, he further stated, channels were free to carry ads of those agencies which agree to the net billing system.

    “It is our endeavour to always uphold the best practices and compliance standards of the industry. As members of the IBF we will comply with the stand taken by the federation,” explained Discovery South Asia senior VP and GM Rahul Johri. “Since Discovery‘s offerings are being uplinked from outside the country, we have been given more time to stop carrying ads and we should stop by 6 pm tomorrow.” He stated.

    RBNL CEO Tarun Katial confirmed that the Big CBS channels have toed the line. “We as an industry have to stand together,” he added.

    Meanwhile, Shah said that talks are on at various levels in Delhi and Mumbai with the agencies and office bearers of the AAAI to resolve the issue.

  • Himmat Butalia to head marketing for AXN India

    Himmat Butalia to head marketing for AXN India

    MUMBAI: Himmat Butalia will move from Pix to sister channel AXN to head marketing.

    This move comes at a time when AXN is beefing up its marketing activities. As had been reported earlier by Indiantelevision.com, the broadcaster will amplify its marketing spend by 30-40 per cent for the year.

    AXN‘s previous marketing head Rohit Bhandari left Multi Screen Media (MSM) two months back.

    Butalia currently looks after Pix‘s marketing activities and it has been learnt that he will take charge of his new role shortly.

  • Pepsi signs up as pouring partner of eight IPL teams

    MUMBAI: After winning the title sponsorship for the biggest annual sporting event in the subcontinent, PepsiCo India has associated with eight out of nine IPL teams excluding Mumbai Indians as the ‘Exclusive Pouring Partner’.

    This year Delhi Daredevils, Chennai Super Kings, Rajasthan Royals, Royal Challengers Bangalore, Pune Warriors India, The Sunrisers Hyderabad, Kings XI Punjab and reigning champions Kolkata Knight Riders will say “Oh Yes Abhi!” to Pepsi and other brands in the PepsiCo portfolio.

    The company will have exclusive pouring rights at partner teams’ home matches along with the title of the official beverage for the eight teams. The association will extend to PepsiCo’s robust food and beverage portfolio including Pepsi, Mountain Dew, 7UP, Mango Slice, Mirinda, Aquafina, Tropicana, Lay’s, Kurkure, Aliva and Quaker Oats.

    These team partnerships, along with the title sponsorship and the robust on-air, on-line and on-ground plans will ensure maximum visibility and engagement for PepsiCo’s brands.

    While activations with Delhi Daredevils will be led by both Pepsi and Mountain Dew; Kolkata Knight Riders and Pune Warriors will be led by Pepsi; Rajasthan Royals and Kings XI Punjab by Mountain Dew; Chennai Super Kings, The Sunrisers Hyderabad and Royal Challengers Bangalore by 7UP. Additionally, these associations also bring with it exclusive pouring rights, joint marketing association opportunities along with other benefits for both food and beverage brands.

    PepsiCo India Region CEO, Beverages Gautham Mukkavilli said, “At PepsiCo, we believe that winning the title sponsorship of Pepsi-IPL was just the beginning and we are committed to back it with smart, strategic and high-decibel marketing and activation plans that will help us maximize the tournament’s potential. We are thrilled to announce our association with the eight franchise teams and will continue to build a campaign that will change the face of sport sponsorships and activations in India. Cricket lovers can look forward to a lot more excitement, never before experiences and a memorable sporting season.”

    PepsiCo has also signed the Co-Presenting broadcast sponsorship deal with Multi Screen Media (MSM), owners of the Max channel that will be broadcasting Pepsi-IPL 2013. Apart from a strong on-air play of its portfolio, PepsiCo is working on a series of customised innovations with MSM to maximise its association with the broadcaster.

  • Multi Screen Media eyes strong ad rev growth from IPL

    MUMBAI: Multi Screen Media‘s (MSM) strategy of reducing ad rates for the sixth edition of the IPL appears to be paying off. It has already roped in nine sponsors and is looking for two more. For its wrap around show ‘Extraaa Innings‘, it has also got in seven sponsors compared to six last year.

    MSM president network sales, licensing and telephony Rohit Gupta said, “We reduced our rates by 10 per cent. This has helped old clients return and we have also got new companies on board. We have managed to get into new conversations. In a slowdown economy, advertisers want minimum risk. We are looking for a revenue increase of at least 25-30 per cent. So far we have sold around 70 per cent and there are still three more weeks to go for the tournament to start. The plan is to hold back 15-20 per cent and sell it at a higher rate once the event starts.”

    The co-presenting sponsors are Pepsi and Vodafone. The seven associate sponsors are Tata Photon, Samsung Mobile, Panasonic, Havells, Usha Appliances, Karbonn Tablets and Godrej.

    “We are looking for two more associate sponsors since there is a healthy demand. We are happy that our strategy has resulted in Samsung and Godrej coming back. Panasonic and Usha Appliances have come on board for the first time.”

    As far as â€?Extraaa Innings‘ is concerned, MSM has got Amul, eBay, Titan, Nivea, Renault, V Guard and Nestle as sponsors for the IPL. It has sold packages like fall of wickets which has been taken by Luminous, and action replay which has been taken by ACC and Amity. There are also several spot buyers with whom MSM has done deals with including Coca-Cola, Parle Agro, Marico, Nikon, Sony India, Berger Paints, ibibo.com and Airtel.

    “The IPL‘s reach has seen a steady growth. If you look at other recent series like India versus Pakistan, it disappointed with the ratings being much less than what was expected by the industry. With Six having a Hindi feed, IPL advertisers will get even more reach. Our marketing campaign has started. Pepsi is also doing a lot of activation. The BCCI is marketing the property. All of this is creating a lot of buzz in the market. The opening ceremony in Kolkata should set the tone for the event,” Gupta said.

    Vivaki Exchange CEO Mona Jain said that MSM should make Rs. 1.5 billion extra this year as their inventory would get sold out. “I expect the IPL to garner around Rs 8.5 billion this year compared to Rs 7 billion last time. A lot of youth and male focussed brands have come on board. What is seen is that Hindi GECs and Hindi news channels lose share during the event. Males watch those genres less when the IPL is on. So clients try to make up for that. Nobody is splurging. It is just that some companies feel that the IPL is a necessary platform to be on. Others who have less marketing outlay are more conservative. Brand visibility is the main reason to be on the IPL. Companies will use the IPL as a platform to launch new products. For a company like Pepsi, this isthe period where their product is consumed heavily.”

    Gupta, however, expects MSM to rake in around Rs 10 billion this year.

    LodestarUN CEO Shashi Sinha said that it is not just the rate reduction that has seen clients come on board. “The environment is also different. There is no World Cup this time around unlike 2011. Also companies have put their marketing plans in place. The channel will do well.”

  • Sony to buys out private equity firm’s residual 6% stake in MSM

    Sony to buys out private equity firm’s residual 6% stake in MSM

    MUMBAI: Sony Pictures Television (SPT) will buy out private equity firm Capital International‘s six per cent stake in Multi Screen Media (formerly known as Sony Entertainment Television India) to take full ownership of the Indian broadcasting company which is on a growth path.

    Earlier, SPT had bought out 32 per cent stake of the Indian shareholders in Multi Screen Media (MSM) for $271 million, taking its shareholding to 94 per cent.

    "We are going to buy out the six per cent stake of Capital International in MSM. We hope to do it by the end of this year," Sony Pictures Television president Worldwide Networks Andy Kaplan tells Indiantelevision.com.

    Kaplan, however, ruled out a public listing of the company.
    In 2000, Capital International had picked up eight per cent stake for $200 million.

    Sony‘s aggressive growth plans in India include the acquisition of regional broadcaster Maa Television Network. "We are working on it. It is a bit complicated. The acquisition will give us a foothold in the Telugu market," avers Kaplan.

    In 2012, SPT entered into a strategic alliance with Hyderabad-based Maa Television Network to acquire a 30 per cent stake. Maa TV Network operates four Telugu-language channels.

    Sony will also eye other regional acquisition opportunities in India. "We are looking at building on our own and acquiring companies. We are weighing both the options. We are looking at each region and trying to figure out what the best strategy is," Kaplan says.

    In 2009, SPT acquired Bengali channel, Channel 8.

    MSM‘s other new growth pillar would be its sports broadcasting business. The company launched Six, a sports entertainment channel, last year. It has the Indian Premier League (IPL), cricket‘s most lucrative property, as its driver content.

    “We are also looking at other sports in which the audience interest will grow. We have the NBA rights and UFC, among others. We will be aggressive for the right property if we feel that it will be a good fit for our channel. But we will not overbid,” says Kaplan.
    In terms of rights, he said that both cricket and movie acquisition costs from an industry perspective are on the higher side. “We try to be aggressive but disciplined at the same time. India is the only market where we are in the sports genre. So it is unique for us in that sense."

    Kaplan admits that India is a big international market for Sony. "As a TV market, India has been friendly towards outsiders," he says.

  • 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.

  • ‘We are net positive in our deals with cable TV networks in the metros’ : IndiaCast Group CEO Anuj Gandhi

    ‘We are net positive in our deals with cable TV networks in the metros’ : IndiaCast Group CEO Anuj Gandhi

    IndiaCast Group CEO Anuj Gandhi is spearheading an effort to extract bigger pay-TV revenues from broadcast-carriage platforms as TV18 founder-promoter Raghav Bahl searches for growth engines that would propel his media empire to the top league of broadcasters like Star India, Zee Entertainment and Multi-Screen Media.

    Known both in the broadcasting as well as the cable TV world as CEO of Den Networks, Gandhi has already turned around TV18’s distribution business in the four digitised markets of Delhi, Mumbai, Kolkata and Chennai. “We will be net positive in our deals with the cable TV networks in the metros,” he says, after sewing the new commercial deals with the multi-system operators (MSOs).

    Gandhi is ready to reap richer harvests for TV18 as India moves towards digital cable TV. “We will be doubling our subscription earnings within three years,” says the man Bahl has spotted to shepherd the growth of IndiaCast.

    Correcting that is no mean achievement. For the full-fiscal ended 31 March 2012, TV18 Group paid carriage fee of Rs 3.5 billion against Rs 3 billion earned as subscription income from TV viewers through broadcast-carriage platforms.

    Hard bargaining over legacy issues including payment of carriage fees have held up agreements between broadcasters and MSOs with just nine days left for the shift to digital delivery of television channels in the four metros of Mumbai, Delhi, Chennai and Kolkata. But Gandhi is confident that there will be no shift in the deadline of 1 November for digitisation in the four metros.

    “We are entering a new era of television history in India,” he insists, with a smile and a twinkle in his eyes.

    In an interview with Indiantelevision.com’s Sibabrata Das, Gandhi talks about broadcasters‘ different nature of commercial deals with direct-to-home (DTH) and cable TV service providers, a drop in carriage fees, the need to correct “legacy loads” and the growth prospects for all the stakeholders in a digitised regime.

    Excerpts:

    Q. How can you say so firmly that there will be no shift in the deadline of 1 November for digitisation in the four metros?
    We are entering a new era of television history in India. The bad news staring at all of us today is losses, distorted business models and bandwidth constraints. If that is going to halt, the turnaround story for all of us will have to evolve around the digitisation script. The good thing is that all the stakeholders realise that hidden value will unlock only if we end the analogue cable regime. The government is also backing digitisation and has taken all the tough decisions. While Mumbai and Delhi are in full gear, we will know about the ground reality in Chennai and Kolkata as we hit the digitisation date.

    Q. But aren’t we just nine days away and all the commercial deals between broadcasters and MSOs are yet to be in place?
    While all of us are sighting a new dawn, we have a lot of legacy issues to correct. And this takes time. But it is only a few deals that are pending, a few knots that have to be tied. I don’t think this by itself will be a strong force to push digitisation behind. We have gone too much ahead to retreat.

    Even DTH had this dark cloud hovering around it in the initial days; Dish TV did not have Star channels when it launched and Tata Sky (a joint venture of Tata Sons and Star India) had to go without Zee channels in the beginning. We will have digitisation by the set date, with or without a few deals.

    Q. Is IndiaCast unable to lock the deal with Den Networks because of historic high carriage fees?
    I can’t comment on any specific deal. But in some cases there is a revenue mismatch between carriage payouts and the subscription earnings of a broadcaster. This may be due to legacy and involves a lot of negotiations to correct. We have done deals with all the other MSOs except Den (Anuj was earlier CEO of Den Networks). We are confident of sewing a deal with them in the next few days.

    Q. What kind of deals are being stitched? Has IndiaCast done more of cost per subscriber (CPS) or fixed fee deals?
    After rounds of negotiations, we have been able to work out most of our deals with MSOs on a CPS basis. But we are not stuck on any single formula. We are also signing fixed fee deals in certain cases.

    ‘There will be no drastic fall in carriage fees. While the TAM towns are rising, the number of channels are also shooting up. But in the digitised markets, we will see a good drop in carriage fees‘
     
    Q. Are CPS deals in IndiaCast’s case easier to ink because subscription revenues have been comparatively lower than the peer networks while carriage payouts have been higher?

    It has been easier to strike CPS deals because we have been late entrants. We are also at an advantage because we are the only major distribution company to have subscription and carriage under one roof. And as we inducted a new team (Anuj Gandhi joined in March 2012) in IndiaCast, the industry knew that we would seek a revenue-carriage correction.

    Q. Are DTH service providers able to do fixed fee deals while cable is moving more towards CPS arrangements?
    We are seeing an interesting trend emerge. DTH has been able to negotiate more fixed fee deals with broadcasters as they have a national satellite footprint. They can bet on their future subscriber growth numbers with some authority. And they benefit from this kind of commercial arrangement as the yield per box comes down in a fixed fee deal.

    Cable networks, on the other hand, are moving towards CPS deals as they address a finite market (city-specific like Delhi or Mumbai or Lucknow) and there is less chance of them growing horizontally (unless acquisitions happen or they compete amongst themselves to grab more territories). Though MSOs want to do fixed fee deals, broadcasters are not comfortable in forecasting the swelling in future cable TV subscriber numbers.

    As we move towards smaller markets involving small-sized cable networks in the second and third phase of digitisation, we would definitely see more CPS deals. These could later evolve into fixed fee deals as cable networks get a fix on what subscriber growth they would be able to register in future.

    Q. TV18 and Network18 on a consolidated basis earned about Rs 3 billion of subscription income while carriage payout was Rs 3.5 billion in FY‘12. Has IndiaCast been able to do net positive deals in these four metros?
    I can’t comment on the financials but we have corrected that legacy and are in a growth phase. We will be net positive in our deals with cable TV networks in the metros.

    Q. How much of the carriage fees the four metros account for?
    For the industry, these four metros would be accounting for about 45 per cent of the total carriage payouts. We would be in line with this trend.

    Q. How much of a carriage fee drop are we seeing in the four digitised markets?
    There will be no drastic fall in carriage fees. There are twin reasons for this. While the TAM (TV ratings agency) towns are rising, the number of channels are also shooting up. And in the digitised markets, we will see a good drop in carriage fees.

    Q. Raghav Bahl had earlier stated that TV18 would have to catch up on the subscription revenue front while the advertising income had reached a level comparable with the competing networks. What sort of pay revenue growth do you forecast?
    The industry will be able to post 20-25 per cent growth in a digitised environment as revenue leakages stop and the pay-TV market gets corrected. IndiaCast would definitely do better than that. We will be doubling our existing subscription revenues within three years. And when we say this, we are not factoring in any new channel that would be added to our distribution bouquet.

    ‘While DTH has been able to negotiate more fixed fee deals with broadcasters, cable networks are moving towards arrangements on a cost per subscriber basis as they address a finite market and there is less chance of them growing horizontally‘
     
    Q. Why TV18 group could capture a comparable advertising revenue after the launch of Colors while the distribution income stayed far behind competing networks?
    Advertising revenues are broadly reflective of the ratings that the shows get. The distribution business, on the other hand, is much more complex and a late entrant will take time to catch up. The challenge is to keep a fine line of balance between subscription and carriage. Growth is also heavily influenced by the ‘legacy numbers’. Digitisation, however, will help correct some of this ‘legacy load’ much faster than what would have been achievable in an analogue cable regime.
     

    Q. The company earns around Rs 300 million from its international content syndication business. What sort of a growth are you forecasting from this segment?

    We will double our revenues from this segment in three years. We will achieve this by expanding our reach and launching in more international markets. Colors already reaches out to 68 countries and we are looking at entering the South African market where we are in talks with the leading DTH operator there.

    We have just launched MTV India in the Middle East. We are planning to take that channel to other markets including the UK (the channel is already there in the US).

    We have also launched a new channel called Rishtey in the UK. The aim is to dig into the fast-growing free-to-air (FTA) market in the UK at a time when the pay-TV growth is shrinking.

    Q. With ETV clocking about Rs 1.1 billion of subscription income in FY‘12, how much of an advantage will the acquisition of these regional-language channels have in multiplying TV18’s consolidated pay revenues?
    ETV will give us a regional footprint, add depth to our distribution strength, help us penetrate the interior markets, and provide negotiating power to ensure that our network channels get carried in the smaller places.

    Q. Has the reworking of the joint venture distribution arrangement with Sun TV Network Ltd helped? Didn‘t TV18 taken the decision of directly handling the distribution of its network channels in the southern states (except Tamil Nadu where Sun distributes) because of the low pay revenues that it used to get despite the JV with Sun?
    Even now we share a good relationship with Sun TV. We distribute the Sun network channels in the Hindi Speaking Market (HSM) while the TV18 channels in Tamil Nadu are distributed by them.

    For the other southern states, we felt that we needed to take direct control of distribution. The fresh deal with Sun has indeed worked well for us.

    Q. Will IndiaCast want to add more channels or follow the OneAlliance model where size doesn’t matter?
    We don’t want to add channels just to get volume growth. We want to have the right mix of channels.

  • ‘India is the biggest market in which SPT Networks, Asia operates’ : Sony Pictures Television Networks Asia executive VP, GM Ricky Ow

    ‘India is the biggest market in which SPT Networks, Asia operates’ : Sony Pictures Television Networks Asia executive VP, GM Ricky Ow

    AXN Network has recently created a new position to focus in its biggest growth market. Sunil Punjabi has been appointed as the business head and will be handling AXN and Animax in India.

     

    Punjabi will lead the team in developing the go-to-market strategy for new channels as well as oversee the development, acquisition and production of a content mix for SPT’s networks in India. He is also charged with driving marketing strategies to grow the channel brands and to pursue further distribution opportunities.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Sony Pictures Television Networks Asia executive VP, GM Ricky Ow talks about the growth prospects, particularly as India enters the digitisation era.

     

    Excerpts:

    Q. Has India become more of a priority market for SPT Networks Asia in the wake of an economic slowdown which has affected other Asian markets more like Japan and Singapore?
    While we are not able to discuss matters relating to revenue, India is the biggest market in which SPT Networks, Asia (AXN, Animax) operates. So India has always been a high priority market for us as evidenced from the fact that we have always had a dedicated service for India that has enabled us to programme, schedule and promote differently from the rest of Asia and be more relevant to our Indian viewers. The fact that India is still expected to see an economic growth, between 5.5. – 6.5 per cent this year only serves to reinforce the importance of the market.

    Q. So is India gaining importance in terms of business for SPT?
    Our key focus this year is to really understand the evolving Indian consumer. We’ve been doing business in India for 15 years now and there have been some dramatic changes in India … be it the rise of consumerism or media consumption behaviour.

    This year we’ve invested in research and made a big effort to understand the change in the Indian viewers in the context of the rapid changes in the Indian pay TV landscape with digitisation and the huge increase in new players entering the market.

    Q. What does the research show so far as AXN is concerned?
    The AXN brand is still extremely strong among consumers. With increasing competition in the English General Entertainment television space, we believe the key to success is to really understand what the viewers want. Listening carefully to what the viewers have told us, we’ve found that they prefer an AXN that sticks closely to the original high energy, thrilling entertainment formula.

    Consequently, we have kept this in mind as we programme, schedule and promote the channel, which has helped us maintain AXN’s position as the No.1 English GeneralEntertainment channel in India despite the tremendous competition.

    Q. Is that why AXN Network has created a new position and appointed a business head to run the India operations?
    Yes, we have appointed Sunil Punjabi to lead the Indian operations for AXN and Animax in India. We and our partner Multi Screen Media believe that our business in India deserves more resources and have, thus, expanded the team to capitalise on growth opportunities in India.
    ‘We and our partner Multi Screen Media believe that our business in India deserves more resources and have, thus, expanded the team to capitalise on growth opportunities in India‘

    Q. In India we are seeing more players entering the English entertainment space due to anticipation of digitisation. How will this impact viewership?
    India is a huge market with the biggest English speaking population in the whole of Asia. AXN being the number one English GE channel in Asia and India for the last 15 years has not been an easy task. There has always been competition and the future may bring even more competition but it is certainly not a stranger to us.

     

    Digitisation will offer the consumers more choices not only in the number of channels but also in the quality of their viewing experience which was not possible with the current analogue system. We are already seeing some of the impact of digitisation in some of the semi-digitised metros like Mumbai and Delhi where viewers are spending more time with the genres of their choice as well as heading straight to their favourite channels rather than having to surf through channels to get to their final destination.

     

    In a fully digitised world channel brand recognition and what they stand for will become paramount. Fortunately the AXN brand is still very much loved in India and we have become synonymous with the action genre which continues to be extremely popular in India.

    Q. Are you strengthening your localisation strategy?
    Asia and India-specific production initiatives like ‘Amazing Race Asia‘, ‘Cyril Family Vacation‘ and ‘India’s Minute to Win It‘ are an important part of our localisation strategy that helps us to not only differentiate ourselves from other channels but also build a stronger connection with our viewers.

     

    So we’re not relying on acquisition alone for tent pole programming. Our original productions enable us to have better control of our own fate, the relationship we have with our viewers and key stakeholders and partners.

    Q. Are content costs escalating with more demand for content and how do you judge whether or not a property is worth an increase in price?
    The English space in India has been very hot in the last 18 months and that will in general drive up prices. That being said, we continue to offer some of the best entertainment shows that viewers want, including the ‘CSI‘ franchise, ‘NCIS LA‘, ‘Supernatural‘, ‘The Voice‘, ‘So You Think You Can Dance‘, ‘The Amazing Race‘, while also producing our own shows like ‘The Firm‘ and our next upcoming major production, ‘Hannibal‘.

    Q. AXN Beyond was re-branded as beTV across Asia. What prompted this move?
    While AXN is doing well across region, outside India we also have two other successful brands — beTV and SonyEntertainment Television (in English). SET offers wickedly juicy entertainment that appeals to the modern female.

     

    beTV was previously AXN Beyond. A very well focused channel dedicated to fans of sci-fi, paranormal and horror programming.

     

    We made the strategic decision to rebrand AXN Beyond because we wanted to build a mainstream Englishentertainment channel that appeals to a wider audience. One that can be a complementary and companion channel to AXN and allowing us to offer a more complete portfolio of English entertainment channels. beTV thus offers easy viewing and engaging entertainment, a place for viewers to chill and unwind much like their favourite hang-out café or hang-out joint.

    Q. Are you launching this channel in India or are you waiting for digitisation to take concrete shape?
    We are always looking for opportunity to launch these brands in India and it is not appropriate for me to talk about this yet.

    Q. How is SPT Networks Asia leveraging HD and 3D and how do you see them enhancing the TV viewing experience?
    AXN is already available in HD in every market except Taiwan and India. Eventually we will be shifting our service to HD for these two important markets as well.

     

    Our distribution in India is much wider than the top 10 key cities, so the plan to roll out HD is a massive effort for us. In the US, Sony Corporation together with Discovery Communications and Imax Corporation has launched the world’s first and only 3D channel – 3net.

     

    For us, the key for launching HD and 3D is finding the right timing and formula that works for us.

    Q. Has the pay TV business across Asia been hit by the slowdown or are consumers still willing to pay a good price if they see value?
    From our experience, we have found that the consumer is actually more willing to pay for pay TV services in challenging times. It offers affordable entertainment at home for the whole family instead of spending a lot more money when a family goes outside the home for entertainment.

     

    We have also continued to see growth in our advertising business as pay TV is one of the more cost effective advertising mediums for marketers. AXN not only provides a quality environment that enhances advertisers’ brand image but also appeals to and reaches a very desired audience – the SEC A and SEC AB. Our audience is less affected by the economic crisis and continues to have considerable spending power, which is why it is important for marketers to continue investing with us.

    Q. In the US, new media is seeing people spending more time watching shows online rather than on the TV channels. Is this a challenge you are starting to face in India and Asia?
    While we are seeing an increase of online viewing, both illegal and legal, we also expect to see an increase in both time spent viewing and reach of pay TV as pay TV penetration continues to grow in many markets across Asia including India.

     

    The good news for advertisers is that pay TV, in spite of the wide choice available, is still less fragmented than the Internet and offers a well targeted, distinct brand environment for marketers to select. Pay TV brands command loyalty amongst viewer who have been relying on pay TV brands for the past 15 to 20 years and we believe they will continue to do so especially as shared family

  • IPL season 5 sees drop in ratings and TV ad rev

    MUMBAI: The drop in IPL ratings and inability to protect advertising rates has put Multi Screen Media (MSM), the broadcast rights holder, under pressure to take stock of the situation.

    The sixth edition of the IPL next year might be even more challenging for MSM as the television viewership for Indian Premier League has refused to go up despite several close encounters and record turnout at the stadium. When the IPL season began this year, Max had just six sponsors who had come on board at last year’s rate of Rs 500,000 per 10 second spot with Karbonn Mobiles being the only addition to the roster.

    However, the drop in viewership has led advertisers to ask for a cut in rates. Parle had reportedly bought ad spots for its new cookie brand, Happy Happy, at a 25 per cent discount over the premium of Rs 500,000.

    Even late joiners have cut deals at rates that are lower than last year‘s, implying that they are not disturbed advertising on the IPL despite a ratings fall. The sponsors who came on board have also benefited as they got a clutter-free exposure.

    Says Reliance Communications head marketing and branding Sanjay Behl, “There was no premium on ad rates for the IPL this year. We are happy with the RoI that we have got on our investment, although there has been an 8-10 per cent reduction in ratings. We had discounted ratings by 20 per cent before making our media plan.”

    The company had bought spots to promote Google-endorsed Android smartphone which is being distributed exclusively in India by RComm.

    The average viewership of the tournament is 3.27 TVR for 68 matches compared to 3.39 TVR last year, as per Tam data for C&S 4+ All India market. The cumulative reach is 159 million for the current season, less than the 160 million last year.

    For the first 57 matches, the average viewership stands at 3.3 TVR while the first 46 matches had notched up 3.4 TVR. The expectation was that the ratings would pick up as the tournament progresses but that has not been the case.

    “We will sit down once the event is over and analyse why the viewership has fallen. However, the event has more or less held up compared to last year. It has been the 4 pm matches whose ratings got affected,” says MSM president network sales, licensing and telephony Rohit Gupta. He, however, refuses to give any details about the ad inventory consumption.

    MSM has used a chunk of the ad inventory to promote its sister channels including Sony Six, the newly launched sports entertainment channel. The strategy is not to let the rates fall deep as MSM holds the IPL rights till 2017.

    Industry estimates place MSM‘s ad revenue from this season of the IPL at somewhere in the range of Rs 7-7.5 billion. In the previous edition, the IPL had fetched MSM Rs 9 billion from advertising. Gupta did not want to talk about the financials at all.

    According to a top level executive at a leading media buying agency, the IPL ad rates decreased by 10-15 per cent over the last year and the spot rates remained flat at Rs 425,000-450,000 per 10 second spot.

    Another media buyer estimates the broadcaster to earn upwards of Rs 7 billion as it has managed to sell its inventory as the tournament progressed.