ITV

Tag: P&L

  • Indian pay-TV expanding by 10.6 pc, 77 pc to be digitised, ARPUs to rise by ’22: MPA

    Indian pay-TV expanding by 10.6 pc, 77 pc to be digitised, ARPUs to rise by ’22: MPA

    MUMBAI: Pay-TV players in Asia-Pacific region are girding up their loins to integrate online video into their service bouquets and recalibrate owing to broadband growth while concentrating and scaling up their investment on premium content as they stare at competition

    Indian pay-TV revenue, according to the new Media Partners Asia (MPA) report, is set to expand by 10.6 per cent this year. The annual ‘Asia Pacific Pay-TV Distribution 2017’ report covering 17 markets includes analysis of 80 pay-TV and broadband operators with KPIs and P&L.

    Pay-TV industry revenues in India are on track to pass the US$-10 billion mark this year, MPA states. Industry revenues are set to expand by 10.6 per cent this year, picking up the pace again after a 6.3 per cent growth rate in 2016.

    Cable, the dominant platform in Indian pay-TV with 59 per cent of subscription revenue and 67 per cent of subscribers, will expand by 7.0 per cent this year to exceed US$ 3.6 billion, according to MPA forecasts. Revenues for DTH satellite meanwhile will grow by 13.6 per cent to reach approximately US$ 2.6 billion. Pay-TV advertising, meanwhile, is set to contribute just over US $3.8 billion.

    Media Partners Asia president – India Mihir Shah said: “India’s pay-TV market has been shaken and stirred by macro-economic developments, from demonetisation to tax reform, as well as structural shifts in the marketplace, notably TV ratings for rural areas as well as proposals for a new tariff regime from the regulator. That said, the market continues to offer scale and opportunities for monetisation. India’s pay-TV industry will add five million net new customers this year, lifting the base to 155 million homes. By 2022, this base will have grown to 173 million homes.”

    “Although average revenue per user or ARPU is relatively low at US$ 3.4, this will rise to US$ 3.8 by 2022,” Shah added.

    “Digitalisation offers a major opportunity, not only to incumbent cable and DTH operators, but also to new platforms such as DD FreeDish. By the end of this year, there will still be 44 million analogue cable homes in India that need to be upgraded to digital networks. We expect 77 per cent of India’s pay-TV base to be digitalised by 2022. On-ground enforcement of the government’s cable digitalisation programme, together with more foreign direct investment as well as healthy primary and secondary capital markets, will also help drive digital subscriber growth.”

    India’s pay-TV market is poised to be the fastest growing in Asia Pacific over the next five years, as revenues increase by a 7.1 per cent annual growth rate between 2017 and 2022, according to MPA forecasts. Analysts projected pay-TV industry revenues in India to pass the US$ 14-billion mark in 2022.

    Revenue from pay-TV advertising will grow by a 10.5 per cent annual growth rate over this time-frame, increasing its share of the pay-TV pie from 38 per cent in 2017 to 45 per cent in 2022. Pay-TV subscription revenue will grow by a 4.8 per cent annual growth rate, with its share of the pie set to fall from 62 per cent in 2017 to 55 per cent in 2022.

    India is the second largest pay-TV market in Asia-Pacific, after China, which is expected to generate US$ 21.0 billion in revenue this year, according to MPA. Japan, a US$ 6.5 billion pay-TV market, is third. Korea sits in the fourth place, at US$ 5.5 billion, while Australia lies fifth at US$ 2.8 billion.

  • Havas Group merging creative & media under one P&L

    MUMBAI: Havas Group has announced another step in its together strategy to accelerate integration by further breaking down silos and moving to a client-centric and region-based organization.

    The Group’s two divisions, Havas Creative Group and Havas Media Group, will no longer exist. The creative and media businesses, alongside the healthcare and wellness business, willbecomesimply business units, under one regional P&L, to ensure agility and a seamless experience for clients.

    And to ensure the most relevant organization in a client-centric model across media and creative, Dominique Delport is appointed as Global managing director and chief client officer for the Havas Group,where he will oversee global clients relationships, marketing initiatives and new business.

    These moves are the result of the successful implementation, at the end of 2016, of a centralized management of our four largest markets,where chairmen were appointed at the group level: Chris Hirst for the UK, Alfonso Rodés for Spain and Yannick Bolloré for France and North America. The Group is now adding two new chairmen roles to optimize its structure and offering in Latin America and Asia Pacific.

    Presently, Havas Media Group Latin America CEO Jorge Percovich has been appointed as the CEO of Havas LATAM Group across the creative and media businesses. He will be responsible for overseeing all of the Havas Group agencies in the region: 65 offices in 19 countries,with+3,000 people.

    Havas Creative Group APAC CEO Mike Amour has been appointed as the CEO of Havas APAC Group across the creative and media businesses. He will be responsible for overseeing all of the Havas Group agencies in the region: 79 offices in 17 countries, with+2,400people.

    Delport said, “For four years now, the #togetherstrategy and the opening of our 47 Havas villages has transformed the wework and serve our clients. Now it’s all about extending Yannick’s vision and reinventing our industry by creating new standards, new offers and new services that blend the best of both worlds: relentless creativity and smart media accountability. Havas wants to beat the forefront of this transformation by putting the power of content and data at the core of our activities. It’s an exciting challenge.Being agile and having a challenger mindest doesn’t prevent us from having big ambitions for our Group, our people and our Clients.”

    Bolloré mentioned, “As the world moves faster and grows more complex, we believe we need to transcend the traditional definition of “creative” and “media” to better deliver for our clients.The appointments of Dominique, Jorge and Mike will ensure we create the most modern approach to developing solutions, regardless of where the thinking begins. They will enable us to better share talent and resources on behalf of our clients, as well as create cross-channel learning and development opportunities for our people.”

    APAC implications:

    In Asia Pacific, there will be two additional executive appointments. Currently Havas Media Group APAC CEO Vishnu Mohan will become CEO, Havas Group India & South East Asia, responsible for all media and creative group agencies across those markets. Levent Guenes, currently CEO Havas Creative Group South East Asia, will become Chief Growth Officer, Havas Group APAC, with a primary focus on driving new ventures, acquisitions, and strategic partnerships. Both Mohan and Guenes will report to Mike Amour.

    Amour said, “I am honoured and excited that Yannick Bolloré has asked me to help lead the next stage of our ‘Together’ strategy in Asia Pacific. The Havas Village model drives a clear, progressive view on the future of our industry, which is that Creativity is the product of radical collaboration. It’s very important that our Village strategy optimises our structure and offerings to create the most modern approach to developing solutions, regardless of where the thinking begins”.

  • Lowe Lintas Delhi gets Ranveer Singh ‘Faster Than Faster’ for Vivo India

    Lowe Lintas Delhi gets Ranveer Singh ‘Faster Than Faster’ for Vivo India

    MUMBAI: With the much-awaited VIVOIPL 2016 ready to take off, title sponsor VIVO has rolled out a brand campaign promoting its latest product offering – VIVO V series smartphones-V3 and V3Max Series. The new campaign is themed around “Faster than Faster” and highlights multiple features of the newest offering from the leading smartphone player including its breakthrough faster fingerprint unlocking technology.

    Vivo India has roped in Bollywood heartthrob and youth icon Ranveer Singh as its brand ambassador. With his ability to instantly connect with the youth, Ranveer Singh will be exhorting users on the benefits of the new smartphone in a quirky and unabashed manner.

    Commenting on the new campaign, Vivo India CEO Alex Feng said, “It gives me immense pleasure to announce the launch of our innovation, the V3 and V3 Max for the Indian market. The V series designed with creativity and equipped with state of art technology will be a landmark for Vivo India. And we are truly delighted to have Ranveer Singh as the face of Vivo in India. Ranveer enjoys a huge fan following amongst the young Indian audience and Vivo being the brand for the youth, this lethal combination is all set to create magic in the Indian market. The campaign also looks young and fresh and we are confident that it will help the brand grow to the next level.”

    Lowe Lintas Delhi president Naveen Gaur said, “The task was to establish Vivo in an incredibly competitive landscape of mobile handsets and launch the new V3 and V3Max with a campaign that brings alive the product proposition of ‘fastest phone’ in the market. For that, we chose Ranveer Singh as the brand ambassador as he truly symbolizes ‘fast’ both in terms of his success and growth in the film industry and his immense energy. His association has ensured a strong youth connect and he has beautifully demonstrated the key features of Faster RAM, faster fingerprint unlocking and faster processor in the campaign.”

    Sharing his views on the creative thought-process behind the campaign, Lowe Lintas CCO Arun Iyer said, “The features that make VIVO V3 and V3Max exceptional were many, but the ones that particularly stood out and provided the brand its ethos were fast speed, huge memory and being an able ally of the youth. The campaign shows Ranveer Singh encapsulating these attributes in his unusual style and manages to establish a strong brand connect. Filmmaker Dibakar Banerjee has done a wonderful job in bringing these moments to life in a manner befitting the brand.”

  • Lowe Lintas Delhi gets Ranveer Singh ‘Faster Than Faster’ for Vivo India

    Lowe Lintas Delhi gets Ranveer Singh ‘Faster Than Faster’ for Vivo India

    MUMBAI: With the much-awaited VIVOIPL 2016 ready to take off, title sponsor VIVO has rolled out a brand campaign promoting its latest product offering – VIVO V series smartphones-V3 and V3Max Series. The new campaign is themed around “Faster than Faster” and highlights multiple features of the newest offering from the leading smartphone player including its breakthrough faster fingerprint unlocking technology.

    Vivo India has roped in Bollywood heartthrob and youth icon Ranveer Singh as its brand ambassador. With his ability to instantly connect with the youth, Ranveer Singh will be exhorting users on the benefits of the new smartphone in a quirky and unabashed manner.

    Commenting on the new campaign, Vivo India CEO Alex Feng said, “It gives me immense pleasure to announce the launch of our innovation, the V3 and V3 Max for the Indian market. The V series designed with creativity and equipped with state of art technology will be a landmark for Vivo India. And we are truly delighted to have Ranveer Singh as the face of Vivo in India. Ranveer enjoys a huge fan following amongst the young Indian audience and Vivo being the brand for the youth, this lethal combination is all set to create magic in the Indian market. The campaign also looks young and fresh and we are confident that it will help the brand grow to the next level.”

    Lowe Lintas Delhi president Naveen Gaur said, “The task was to establish Vivo in an incredibly competitive landscape of mobile handsets and launch the new V3 and V3Max with a campaign that brings alive the product proposition of ‘fastest phone’ in the market. For that, we chose Ranveer Singh as the brand ambassador as he truly symbolizes ‘fast’ both in terms of his success and growth in the film industry and his immense energy. His association has ensured a strong youth connect and he has beautifully demonstrated the key features of Faster RAM, faster fingerprint unlocking and faster processor in the campaign.”

    Sharing his views on the creative thought-process behind the campaign, Lowe Lintas CCO Arun Iyer said, “The features that make VIVO V3 and V3Max exceptional were many, but the ones that particularly stood out and provided the brand its ethos were fast speed, huge memory and being an able ally of the youth. The campaign shows Ranveer Singh encapsulating these attributes in his unusual style and manages to establish a strong brand connect. Filmmaker Dibakar Banerjee has done a wonderful job in bringing these moments to life in a manner befitting the brand.”

  • ‘The only thing that supercedes creativity is accountability’ : Laurence Boschetto – DraftFCB president & COO

    ‘The only thing that supercedes creativity is accountability’ : Laurence Boschetto – DraftFCB president & COO

    It was in June that media conglomerate Interpublic combined its Draft and Foote Cone & Belding (FCB) units around the world to create a channel-neutral agency model DraftFCB. Heading DraftFCB as its president-COO is Laurence Boschetto, previously president-COO of Draft.

     

    Hardly has Boschetto had time to gather his breath on the ramifications of the new entity has come an even more radical announcement. Which is that Interpublic is reorganizing its media operations with Initiative becoming aligned within DraftFCB and Universal McCann coming under McCann Worldgroup.

     

    The reorganisation came just ahead of news that the newly integrated DraftFCB has been awarded the account of retail behemoth Walmart worth an estimated $570 million. That the monster win came on top of new business that DraftFCB had won from Citigroup, Merrill Lynch and Atari has been more than a validation for Boschetto and the team at DraftFCB.

     

    In conversation with Indiantelevision.com, Boschetto, who over the last three weeks “has been on the road to every single region introducing them to the new model”, throws some light on just what’s happening at DraftFCB, as too the vision thing with IPG.

     

    Excerpts:

    Is it fair to say that IPG’s reorganization of its media operations represents the most significant example of support for those against the unbundling of media that we have witnessed over the last 20 years or so? And extending that posit, can we then argue that making media and creative interdependent is the best way forward?

    Over the last decade we stripped everything out of an agency, we have taken strategic planning, we stripped away media and now they have basically become interchangeable parts, the ‘value has been devalued.’ So what we are doing right now is we look at the client, we look at the demands and pressures that they have, we look at the environment that their end user works in and we say ‘how do we change the game.’

     

    This might look like the old model but it’s packaged in the new model formulation, an offering of complete integration of products and services but not doing it syllogistically under the model.

     

    What we are saying is that there is one management team, there’s one P&L and the palette consists of all the different skill sets, so the clients don’t have to manage all those relationships and the agency can come back with a business solution orientation based on the real business issues rather than the disciplines that they are confident in.

     

    Today we often hear clients say, ‘I want channel agnosticism and discipline neutrality.’ Yet there isn’t really any channel agnosticism. We didn’t build organizations in the industry that way, we have people that are proficient in strategic planning, in branding, in advertising, in PR and in retail. Now they are asking for renaissance marketing communications people, that’s what this whole model is about, it’s about building another class of business builders in the marketing communication field.

    The new media strategy represents the third major organizational change Interpublic has instituted this year. What is the broad direction that IPG is taking with all this?

    When you take a look at the advertising industry, you cannot ignore client structuring and their constituent parts because this tends to have a ‘domino effect’. The environment that the customer lives in has radically changed, technology has changed they way that they live and breathe, how they interact and connect with each other, this has created one basic phenomena ‘immediacy’.

     

    Technology has changed the way we work and engage. This has put tremendous pressure on the CMOs, as they also live in an environment and at a time when their CEOs are demanding performance in their books. It is estimated that every CMO has a life expectancy of roughly 24 months. However, if they have to produce they will have to figure out how to navigate through a company, what the alliances are, who their end user is and quarter after quarter their performance based on real business metrics will determine what their life expectancy will be.
    ‘Over the last decade we stripped everything out of an agency, we have taken strategic planning, we stripped away media and now they have basically become interchangeable parts, the ‘value has been devalued’ ‘

    If you say that a CMO has an average 24 month life cycle, what happens if he continues to deliver what the client demands?

    As defined, stage I is to develop a way of operating to deliver that media and channel neutrality and agnosticism and that’s by bringing together not just one person to lead the business but all the discipline leaders at a round table, to form a team for the client.

    Now, if one client is more strategic in nature then they may have a strategic person in the key position, while someone else who is more data driven might have the data person heading it, but the way we think through the issues are holistic. The goal is that over time we are not expecting that someone who is highly proficient in strategic planning and database modeling to be interchangeable. But the person who heads up strategy must be able to think more holistically, so that when they come to a business situation they determine what’s right for the client.

    But will these individuals continue to function within their respective units?

    The goal is to make sure that the purity and the authority of every discipline still resides in an agency so that we never lose that foothold. In the process of giving clients that ‘channel agnosticism’, the days of only the account person holding that relationship, we are saying that before we get there we need to have a team consisting of media, strategic planning, account services and a creative database all sitting at the table and having an equal voice in determining how to solve a business issue.