ITV

Tag: Multi Screen Media

  • IPL 5 ratings soften, 16 matches notch up 3.65 TVR

    IPL 5 ratings soften, 16 matches notch up 3.65 TVR

    MUMBAI: The ratings for the fifth season of the Indian Premier League have failed to improve after a softer opening, while it has started eating into the Hindi general entertainment genre.

    The first 16 matches of the IPL have registered an average TVR of 3.65 compared to a 4 TVR in the last season of the tourney.

    As per data from TAM Sports, the cumulative reach of the matches (C&S, 4+, All India) have dropped to 123 million viewers, from 127 million last time.

    The first seven matches of the current IPL season had delivered an average rating of 3.76 TVR which was lower than the 4.63 TVR that it had notched up last year.

    Multi Screen Media (MSM) president network sales, licensing and telephony Rohit Gupta declined to comment on whether the channel would manage to achieve growth this year. In the fourth edition of the IPL, MSM had posted an advertising revenue of Rs 9 billion.
    For the record, the broadcaster has only six sponsors on board with Vodafone and Idea 3G smart phone as co-presenting sponsors and Cadbury‘s Dairy Milk, Havells, Pepsi and Tata Photon as associate sponsors.

    GroupM CEO South Asia Vikram Sakhuja says that re-calibration of rates is needed. “The IPL is still a very good property and it is maturing. The first week‘s data was around 10-11 per cent less than last year. The second week‘s ratings are almost similar to what was managed last year.

    Overall, so far the ratings are six to seven per cent lower. I think that the event could manage a similar performance to last year with a possible positive or negative difference of four to five per cent. Even with properties like ‘KBC‘ you see a bit of a drop from one season to the next. What you hope for is that the ratings at least hold steady.”

    He notes that one good thing about this edition of the IPL is that there have been more close encounters compared to last year. “Both of yesterday‘s matches went down to the wire. That should help viewership.”

    More micro-marketing efforts are needed at this stage of the event. “This means building anticipation for daily clashes and better marketing of day to day matches is needed. This effort needs to come from everybody including the broadcaster and franchises,” Sakhuja says.

    Commune Sports and Entertainment MD Jamie Stewart continues to stay bullish on the IPL. “Although the ratings have dropped, I think the IPL is still a valuable property. Even at the current level, the rating is decent.”

    Stewart believes the franchises should not have upset the applecart by revamping their teams as that leads to dilution in fan loyalty. “I think the change in teams last year was complete madness as many of the franchises had to start building their fan base right from the scratch,” he adds.

    Also Read:

    IPL knocks out 51 Hindi GEC GRPs

    Weak IPL5 ratings cause for concern

  • Multi Screen Media ropes in early sponsors for IPL at 10% higher rates

    Multi Screen Media ropes in early sponsors for IPL at 10% higher rates

    MUMBAI: Aiming at growth in a slowing economy, Multi Screen Media (MSM) has roped in early sponsors for the IPL at rates that are 10 per cent higher than the previous year.

    Vodafone, Pepsi, Tata Photon and Idea are the four advertisers who have returned, indicating faith in the Indian Premier League (IPL) despite the brand value of some of the Indian cricketing icons being eroded due to their poor performance in Australia.

    Co-presenting sponsors are coughing out around Rs 680-700 million and associate sponsors Rs 480 million each, according to sources.

    The fifth edition of the IPL is obviously gaining from a lean cricketing calendar year. The cricket World Cup was also there last year, just preceding the IPL.

    According to a media buyer, telecom companies are looking at this event in a big way this year. “Last year, you had the cricket World Cup just before the IPL which affected interest. This year there is no such issue. The Asia Cup which takes place just before the IPL is a much smaller event,” he explains.

    The IPL that kicks off on 4 April will still have to counter a tough economy when companies are cutting down on their ad spends. While not revealing any client names or targets, MSM president networks sales, licensing and telephony Rohit Gupta is hopeful of managing some sort of growth. At the same time, he concedes that it is a challenge managing to do this level of revenue.

    The IPL, which saw a dip in ratings last year, will be marketed heavily this year. Says Gupta, “At the franchisee meeting in Goa, the stakeholders were clear that there is a need to push up the ratings. You will definitely see more buzz around the event. A bigger push will be made compared to last year, not just by Max but by all the stakeholders. With no World Cup, the IPL will also have have a clearer run this year.”

  • ‘Max is an extremely successful channel’ : Max Sr EVP and business head Sneha Rajani

    ‘Max is an extremely successful channel’ : Max Sr EVP and business head Sneha Rajani

    Multi Screen Media‘s hybrid channel Max has completed 11 years and today is a prime asset of the company.

     

    While it telecasts the lucrative Indian Premier League (IPL), in the movie space it is in close fight with Zee Cinema for the top spot.

     

    In an interview with Indiantelevision.com’s Gaurav Laghate, Max Sr EVP and business head Sneha Rajani talks about how Max has successfully run its movie and cricket businesses separately and profitably.

     

     

    Excerpts:

    Max has been both, praised and criticised, for changes in cricket programming. Your comments…
    What we did with cricket was pioneering. We changed the way cricket was viewed and consumed in this country. Till then it was like a match being aired and a little bit of analysis thrown. What we wanted to do, and which is where we revolutionised cricket viewing, was that we wanted to increase the base.

    Cricket was predominantly male viewing till we came into the market. We knew that in order to increase the base, it couldn‘t be just confined to the men. We had to make it all inclusive.

    So we took some seriously bold steps like introducing a woman anchor way back in 2002 (Ruby Bhatia) and Extraa Innings.

     

    In the 2003 World Cup, we had three women instead of one – and purists went ballistic. The ratings increased five times, women audience grew 200 per cent and Extraa Innings touched a 19 TVR.

    Another milestone was duplicating the success of Extraa Innings with movies – Extra Shots. Mandira Bedi became the first movie jockey.

     

    From 2008 we are having IPL. There has been no dull moment since then – we are made for each other.

    What about movies?
    Blockbuster movie acquisition is something Max has been associated with always. Out of the 10-12 big films every year, Max has easily over half of them. Be it Lagaan, Devdaas, Om Shanti Om or 3 Idiots – you will always see the best and biggest movies on Max.

    3 Idiots is, perhaps, the biggest coup that Sony has pulled off. Look at the ratings of the first three airings.

    With so much controversies and bad publicity going around IPL, will it have any adverse impact on your revenue targets?
    I won‘t comment on numbers but any publicity is good publicity…it helps you look positively. And at the end of the day, the IPL is a league that the audience wants to watch. The thought and vision is so strong that the IPL will continue to be the biggest entertainment spectacle.

    Max being a hybrid channel, the cost of investment is much higher compared to a pure play movie channel…
    Yes, but we look at the two as completely separate businesses. And both are doing fairly well independently.

    And yes, as for cricket, the rights have been acquired for 10 years. We are well aware of the costs. But as far as movie acquisition is concerned, we know the prices have gone up tremendously, which is why we have been extremely careful about how many movies we have picked up this year and at what price.

    But you have acquired very few movies this year?
    Let me put it this way… We have not acquired as many films as we normally do simply because we did not want to pay unrealistically high. Acquisition has to make business sense.
    ‘We have not acquired as many films as we normally do, simply because we did not want to pay unrealistically high. Acquisition has to make business sense‘

    As Colors is buying movies aggressively for its upcoming movie channel, what will be your plan of action?
    Not just Colors, Star has also picked up a lot of them. Colors is in a different life cycle; they are in a launch phase. We are nowhere in the launch phase, we have a very solid library. We have acquired enough number of premieres.

    So what are the parameters that you look for while acquiring the movies?
    We have a budget and a set of parameters. Our recent acquisitions are Robot, Crook, Raktacharitra, We Are Family and Hisss.

    When you are airing movies, you do not have scope for creative programming. How is your channel different from the other movie channels?
    The scope is very limited simply because we run movies back to back; there is very little space available for us to do anything else. But in the next quarter, we are trying to bring in at least a couple of innovations.

    So far we have Extraa Shots – which has a different look to it every month. We shoot with TV stars; we have picture-in-picture type shots etc. It has been refreshed continuously over time.

    But how will you differentiate between your channel, and say, Zee Cinema and Star Gold if everyone is playing the same movies?
    You are talking about the syndication model. But there are very few movies that have been shared between the broadcasters like Jab We Met airing on 10 different channels.

    I can say 99 per cent of our library is exclusive, and so is Zee‘s and Star‘s. There are very few – around 50 films that are shared in the market.

    So you don‘t believe in the syndication model?
    We as broadcasters are extremely and completely against the syndication model. If you talk to other broadcasters, I think they will also share the same views.

    I think it is not right for the broadcasters and for the movie itself. I think producers also should not encourage this as it completely devalues the product.

    But many channels have formed business models on syndication. Like Colors acquired first airing, Imagine TV got second airings…
    The response to that is the pricing is wrong. It does not mean that you change the model and introduce a model that completely kills your product and the brand of the channel.

    We had to acquire some movies on syndication as they were not available otherwise. But going forward, we have not acquired any film that is on syndication. It is outright acquisition model that we are following.

    Which movies you had to take on syndication?
    Om Shanti Om, Chandni Chowk to China, Bhootnath, Jab We Met and a few others. But after that, we haven‘t. Like 3 Idiots – which we acquired exclusively.
    The window between theatrical release and TV premiere has shortened. But a movie channel gets the movie after it airs on the general entertainment channel. Is there a return on investment?
    If not, why will Colors launch a movie channel? And let me tell you, I can‘t talk about the other movie channels, but Max is a very successful channel. Not just from the ratings point of few, but as a business it is extremely successful.

    And as you rightly said, the big premiere happens on a general entertainment channel simply because the effective rates on a GEC are far higher than a movie channel. But there is a model there which works, and that‘s why everyone is doing it.

    In other words, we recover what we invest.

    But Zee Cinema is not investing heavily on acquisitions and rates higher than Max. So is it not a more effective business channel?
    They do buy, maybe not as much as Star or Sony or Colors, but it is because their business model is different.
     

    And talking about Sony, even before we launched Max, our brand promise was that we are known for our blockbusters. Our strategies

    are different. I wouldn‘t say theirs is more effective or ours is.

    And if you see the last five years, Max has been leading more than them. Obviously our strategy is also working.

    Also don‘t forget that Zee Cinema has got a first mover advantage. It‘s a far older channel. People are used to it and in the Hindi heartland they have a huge following.
  • ‘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.