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Tag: Star India

  • Challenger channels are emerging in South India – By Star India president (South) Jagdish Kumar

    Challenger channels are emerging in South India – By Star India president (South) Jagdish Kumar

    2009 began ominously with dark clouds looming in the aftermath of the meltdown of financial markets in the US. In the midst of this turbulence, Star India was on the verge of concluding a very significant and strategic deal in its history – the acquisition of Asianet channels in South India.

    Having worked on the deal negotiations and complicated regulatory processes for over a year, it was frustrating to hear many doomsday prophets questioning the rationale for making large investments in an under developed media market when businesses across the world were experiencing a severe liquidity crunch. Conventional wisdom said corporate USA will conserve cash and any new investment proposal will either be deferred or cancelled.

    However defying conventional wisdom, we just got the deal done! Star India‘s long term commitment to the media market in India was reinforced when on 9 January 2009 Star network‘s footprint expanded to cover all of South India with the acquisition of channels in Malayalam, Kannada and Telugu. This step from Star truly represents the adage: when the going gets tough, the tough get going! There was never a doubt in any of our minds that the value we derived from acquiring Asianet far out-weighed the price we paid for it.

    Hence while most media companies in India started 2009 with either downscaling/terminating of operations or approaching the market with hesitation and extreme caution, Star started the year with renewed vigour and hope. With its expanded footprint over non-Hindi regional language markets, Star is currently the biggest television network in India with access to 130 million viewers.

    South India is home to 45 per cent of the cable & satellite homes in India. The region is witnessing tremendous economic progress with per capita incomes far higher than the national average. For various reasons, Star had been guilty of ignoring the South Indian market with the exception of Tamil Nadu where its Tamil language channel Vijay TV has been delighting Tamil viewers with innovative content. The network of channels in Star‘s current portfolio consists of a mix of businesses at varying positions in each of the markets:

    In Malayalam, Asianet is the leading channel

    In Tamil, Star Vijay is a challenger channel with its own distinctive brand

    In Kannada, Suvarna is fighting a close battle with the leading channels

    In Telugu, Sitara is still taking baby steps.

    What have we learnt from 2009?

    When one looks back at the year gone by, there are 5 themes which strike out:

    1. South India is not one market; it consists of numerous distinct markets:
    Each of the language markets in Kannada, Malayalam, Tamil and Telugu have distinctive characteristics which sets them apart from each other significantly. Even within the main language markets, there are internal differences which cannot be ignored by television broadcasters.

    Karnataka is a good example to illustrate the multi-faceted features of the market. Besides Kannada language speakers, Karnataka is also home to people who speak Coorgi, Tulu and Konkani. Each of these languages is spoken by people who are proud of their own long history and culture. Furthermore parts of Karnataka in northern, eastern and southern borders of the state have a large populace who are influenced by Marathi, Telugu and Tamil respectively. The capital city Bengaluru has developed into a microcosm of India with people from all over the nation making it their home. Kannada language speakers are a minority in Bangalore.

    Television broadcasters have to factor in the diversity of the market in all their programming and marketing decisions. It is perilous to consider the market as homogenous.

    2. Content needs constant innovation with a blend of tradition and contemporariness:
    The significant earning and consuming populace of the region (25 years and above) are people who grew up in the traditional and conservative environment of the 1980s and 1990s. At the same time they are also modern and contemporary in their attitudes which come along with the economic prosperity the region is experiencing. Television viewers who are entertained by religious/mythological content are also equally captivated by a talk show which is anchored by a transgender host.

    Television broadcasters have to master the art of being a jack of all trades and master of none.

    3. It‘s distribution, distribution and distribution:
    South Indian states have always had the highest penetration of cable & satellite homes in India. With increasing importance of the tier 2 and tier 3 towns, distribution presents immense challenges.

    Each of the regional markets in the South have numerous competing local channels which are backed by political interest and local businessmen. This has created a huge demand and supply mis-match for analogue cable bandwidth. While the distribution market is trending towards consolidation, it is still characterized by territory wars between the major multi-system operators (MSOs). Local cable operators (LCOs) are offered television signals either free or with huge discounts. Such predatory pricing by competing MSOs results in blockage of subscription revenues at the LCO level. In order to compensate for lack of subscription revenues, MSOs are forced to charge exorbitant prices for carriage and placement.

    Television broadcasters face huge challenges in getting distribution. The pay TV market is fraught with risks associated with poor cash collections.

    4. Today’s leader could be tomorrow’s challenger:
    For a long period of time, each of the markets had a dominant leader and a there was a huge distance between the leader and second ranked channels. The Sun network channels dominate the markets in Tamil Nadu, Andhra Pradesh and Karnataka and the Kerala market is dominated by Asianet.

    With the proliferation of channels in each of the markets, the gap between the leader and the challengers is decreasing. With the exception of Tamil Nadu where Sun TV continues to maintain a massive lead over the next best channel, the other markets are witnessing healthy competition in the leadership stakes. Incumbent leading channels in non-Tamil markets are experiencing viewer fatigue with long running fiction serials and audiences are willing to experiment with fresh concepts.

    Television broadcasters have to plan “disruption” in programming and scheduling in order to make inroads into the market. The audience is ready for the next big idea.

    5. Movies can make or break channels:
    South India has a prolific movie industry. 70 per cent of the annual production of approximately 1000 movies in India is produced in South Indian languages. Movies constitute more than 50 per cent of the GRPs of most of the channels. All major networks in South India have created entry barriers by acquiring movie libraries on a long term basis.

    Movies are an essential weapon in a broadcaster’s armoury. Movies are extensively used to attract audiences; thwart competition; promote programming and boost ratings.

    Crystal gazing into 2010

    2010 promises to be an exciting year for the Star network in South India. We are looking forward to strengthening our presence in South India. The challenges in 2010 for television channels in South India will be the following:

    1. Diversified distribution due to the increased penetration of digital boxes (cable and DTH):
    Increasing penetration of digital boxes by DTH players led by Sun Direct will provide numerous opportunities for television channels to reach their audiences. This will open avenues for content providers to monetize niche content. Competition from DTH players is also driving cable networks to install digital boxes to cable subscribers. The surge in addressability by the penetration of cable and DTH digital boxes augurs well for television channels.

    2. Shorter lifecycle of programs and increasing churn of audiences:
    Television audiences are becoming increasingly impatient and the days of long running serials are coming to an end. The market is waiting to see freshness and innovation in content. Television channels have to constantly look to renew their offerings.

    3. MSOs will start consolidating and reduction of territory wars in cable:
    MSOs are entering a period where their equity masters (private and public) are pursuing positive cash flows. Hence the era of easy money availability for network acquisition/operations will come to an end. This implies that MSOs will have to consolidate and entrench themselves deeper into their own territories rather than encroach on other MSOs‘ territories.

    4. Talent wars:
    Good talent in all aspects of the television business will be scarce. Finding and retaining talent will make the difference between leaders and challengers.

  • ‘The GEC market has disintegrated into smaller units with niche regional preferences’-By Star India EVP marketing Anupam Vasudev

    ‘The GEC market has disintegrated into smaller units with niche regional preferences’-By Star India EVP marketing Anupam Vasudev

    MUMBAI: The Hindi general entertainment channel (GEC) space is constantly changing and churning out fresh opportunities.

    In my opinion, it has been a year of shows rather than channels in spite of what everyone would like to say. The viewer has been totally spoilt for choice with the wide and eclectic array of entertainment options being laid out in front of him / her to savour and to get hooked on to. Channels have had to outdo themselves in terms of their offerings – leave alone outdoing their competition to attract eyeballs and to keep them glued to their show / channel. As viewership gets fragmented, diversification of content on TV is the need of the hour. It is an extremely challenging scenario that a broadcaster faces today.

    Also, the market has disintegrated into smaller units with niche regional preferences. Even the share of Hindi general entertainment within the “Hindi Speaking Markets” vary considerably. One extreme is represented by the Hindi belt markets like Madhya Pradesh and Uttar Pradesh which are heavy Hindi GE viewers and the other extreme is represented by markets like West Bengal and Maharashtra which are heavy regional consumers. We saw this as one more opportunity to create higher level of viewer satisfaction.

    With competition heating up and the saas-bahu image that Star Plus had to shake off, we came up with a host of innovative, fresh and creative content to entertain our audiences this year. The channel also decided to increase its physical connection with our audience by creating consumer experiences out of our programmes.

    Let me share with you some examples of this year‘s programme launches and corresponding activities we undertook. We started the year with the launch of ‘Yeh Rishta Kya Kehlata Hai‘. Star Plus had the mega launch in the exotic gardens of Rambagh Palace, Jaipur. 50 couple winners, which were a result of a compatibility test, took their marriage vows for a second time in celebration of their love for each other. This programme topped the TRP charts with its sustained performance week after week! Upholding traditional Indian beliefs and value systems, the show soon captured every Indian household‘s fancy, becoming the most promising primetime show on Star Plus after the departure of the ‘K‘ series from the channel.

    With the launch of ‘Sabki Ladli Bebo‘ in April 2009, Star Plus announced its annual property Ladli Week Celebration where the brand partnered with the KC Mahindra Educational Trust NGO- to start Project Nanhi Kali.

    A fund raiser initiative called Star Plus‘ Project Laadli celebrated the Girl Child Week from 13 – 17 April and received tremendous response from the viewers and media. Children from Project Nanhi Kali had fun spending time with their favourite stars – Bebo (Shiv Shakti) and Kuku Narang (Kanwaljeet) from ‘Sabki Laadli Bebo‘ on the sets.

    Little girls from Nanhi Kali had the opportunity to eat fun meals at McDonald‘s with Akshara (Hina Khan) from Yeh Rishta Kya Kehlata Hain, Shaurya (Saurabh Pandey) and Suhani (Sriti Jha) from Shaurya Aur Suhani. We set up Signature Walls for consumers across 52 Big Bazaar and 21 Sia Jewellery outlets in India. These received more than 51,000 messages during the Laadli Week Celebration, out of which more than 30,000 viewers contacted Nanhi Kali to contribute for this noble cause!

    In June 2009, came ‘Star Vivah‘ – the first ever matrimonial show on Indian television for all those searching for their ideal life partner. ‘Star Vivah‘ provided the biggest platform for prospective brides and grooms to find their life partner, thus simplifying the process of the most important and sacrosanct decision of one‘s life i.e. marriage. The show took a huge social step by propagating an anti-dowry stance and promoting gender equality on the show. All participants were dissuaded from exchanging dowry. The show also featured socially oppressed people such as widows, handicapped individuals and divorcees, hence giving them a chance to start their lives afresh.

    August 2009 saw Star Plus launch an emotional, inspiring & heart warming chat show ‘Tere Mere Beach Mein‘ with ace choreographer turned director, Farah Khan. This was not your regular celebrity chat show about fame and stardom but about their lives away from the arc lights!

    Digital teams created online bidding and auction with Ebay. On the show celebrities gave away various items from their personal favourites for auction and the proceeds were shared with an NGO Sneha. Viewers in large numbers participated to bid for these items on Ebay. The show garnered a whopping 3.3 TVR with its opening episodes, becoming the only television chat show to open with such numbers!

    Star Plus started a movement with the second season of ‘Aap Ki Kachehri‘ with the intention to empower viewers taking the message of “television se zindagi tak” literally. We organised a ‘Walkathon with Dr Kiran Bedi‘ in Indore, Ahmedabad and Lucknow along with eminent social workers, educationists and media personalities. In Mumbai, we tapped the life line of the city – the local trains – to create awareness of the “Aap Ki Kachehri” movement. This train ride with Kiran Bedi attracted a huge number of viewers as they joined her in the movement impromptu.

    In October 2009, ‘Aap Ki Kachehri‘ took another meaningful step forward by launching a path-breaking CSR initiative ‘Aap Ki Kachehri – Aap Ke Dwaar‘ in Delhi and Lucknow. This involved a programme that trained people in dispute resolution; trained NGOs in dispute resolution and effective mediation with the aim to work towards building a more peaceful and productive society.

    The second season of ‘Baa Bahu aur baby‘ was launched in October 2009 with baby‘s wedding – the biggest wedding on Indian television. The entire cast traveled across key cities in Gujarat to collect wishes for Baby. Star Plus dressed up Ahmedabad to welcome Birju‘s baraat – a grand, visual treat that completely floored people. Baa, Pravin Bhai & Gattu (prominent characters from the show) greeted Birju atop a decorated horse. The event was accompanied by music and many Ahmedabadi baraati‘s dancing away reliving the experience, which was followed by Baby & Birju exchanging garlands. This was the first ever fiction show to be back in season two on viewer demand! The second season of the show also gave consistent performance on the charts.

    A large percentage of India resides in the villages and towns and many of them come to our metros to earn their livelihoods. Taking cognizance of this fact, Star Plus came up with ‘Tere Mere Sapne‘ in October 2009 – a story depicting the journey of one such migrant who steps into a challenging new world and how he endeavours to come to terms with a new life and city. To connect with our audience, Sarju, the protagonist of the show, visited Lucknow where he learnt auto driving, cooking and vegetable selling – skills that he will need to survive in the tough city of Mumbai. In Delhi, Sarju visited a migrant colony to learn about their difficulties and how they cope with it.

    The show touched the hearts of viewers and it received the highest recall in its launch week amongst its target viewers as they were able to relate to the concept, culture and emotion of the protagonist!

    With ‘Sach Ka Samna‘, Star Plus took programming to a new level. It completely floored audiences as they didn‘t know what to expect from this show! We created platforms for people to show courage and bare their soul by speaking the truth through a medium that is visually impact full. We, therefore, created Saccho Ki Toli which by its movement and appearance in high catchments areas gained momentum and buzz.

    21 promoters wearing pure white long robes with numbers 1-21 on their robes and a funny ‘Sach‘ about them behind their back moved in groups at VT station, Mumbai and lined up in chronological order. Rajeev Khandelwal, the host of the show, made a public appearance with the ‘Saccho ki toli‘ and invited people to come forward, take a T-Shirt, write their truth and wear this T-shirt to join the ‘Saccho Ki Toli‘. ‘Sach Ka Samna‘ proved to be the first Indian reality show with a launch episode gaining 4.2 TVR, the only reality show to have received such number in last two years. The show maintained a constant high through the season on the TRP charts in the late primetime segment.

    With the recently launched ‘Pratigya‘, Star Plus‘ newest protagonist Pratigya gathered support from hundreds of women who joined in a Human Chain organised at Nariman point as a part of Star Plus‘ ‘Meri Pratigya‘ campaign. This Human chain also attracted protagonists from Star Parivaar who stood together and pledged their support against disrespect and mistreatment of women.

    At Star Plus, we‘ve had great success with industry-defining shows like ‘Yeh Rishta Kya Kehlaata Hai‘ and ‘Sach Ka Saamna‘ and are ending the year on a high with our recent launches – ‘Pratigya‘ and ‘Music Ka Maha Muqabla‘.

    Going forward, Star Plus is going to further raise the bar in programme innovation and will ensure that its audiences will have the best that televised entertainment can offer.

     

  • ‘We will fight competition with innovative content’ : Anupam Vasudev- Star India EVP marketing and communications

    ‘We will fight competition with innovative content’ : Anupam Vasudev- Star India EVP marketing and communications

    It’s rearguard action time at Star Plus. Edged out after a nine-year life at the top, Star Plus is making moves to shed off the “saas-bahu” image that stuck on to the channel.

     

    What followed is a flurry of differentiated content. While Kiran Bedi played judge on social issues in Aap Ki Kachehri, matrimonial show Star Vivah gave a platform to many prospective brides and grooms.

     

    Star Plus also experimented with shows like Paanchvi Paas that made no major impact on its ratings.

     

    The big show now is Sach Ka Saamna, an adaptation of the bold and sensational The Moment Of Truth.

     

    In an interview with Indiantelevision.com’s Anindita Sarkar, Star India EVP marketing and communications Anupam Vasudev talks about Star Plus’ road ahead as the channel takes up the challenge to regain its leadership position and widen the gap with its rivals.

     

    Excerpts:

    The first half of the year has really been interesting with the GEC space witnessing the rise of three strong players at the top. Does this mean the absolute end to the Star monopoly?
    The game is not yet over. We had nine years of undisputed leadership and it’s been a great run for us. Look, in all categories and businesses, competition does catch up at some point of time – and they have caught up with us. In the last couple of months there have been ups and downs in the top three category, but we were never out of the game. In fact there were weeks when we did come back to the number one spot. So these things will keep happening in terms of the top three players for a while until one of them breaks away to rein the top slot singularly. We are ensuring that Star Plus is the one that breaks away from the lot to establish its leadership one more time.

    So how do you plan to break away from the top three league?
    As you can see, there is a whole new programming that is being brought in to Star Plus. We have just launched Sach Ka Saamna in the non-fiction category. We will be launching a new fiction show, Sajan Ghar Jaana Hai, very soon. We are also firming up our fiction category further with a couple of new shows, lined up for the next two to three months.

     

    We will also continue to strengthen our existing offerings and products that have the potential to grow like iconic shows Yeh Rishta… and Bidaai and recent launches such as Mitwa and Laadli.

     

    So we are bringing across a lot of innovative content to fight competition and ensure that we retain our leadership with consistency – and with enough gap from everyone else.

    Though you have a loyal base of 200 plus GRPs coming in from fiction and non-fiction show, content like events and films are also impacting a further 30 GRPs. Does this mean that you are also banking a lot of such content to push up your GRP grades?
    For a GEC channel, events and films have always been an inherent part of the programming mix, especially movies that contribute about 15 per cent to our total revenue and also help to drive in family viewership. However, the real changes that have happened in the movie sphere in the recent past is that the time gap between a movie coming to the theatre and being aired has shortened. So the effect is more. Also, movies have started getting syndicated instead of being exclusively owned. These are the two significant changes that have come into the movie business on television. But from a programming or a brand perspective, offering movies to viewers has consistently been part of our network strategy wherein our channels run movies. This includes our regional channels. So movies have always been a core element of our programming strategy.

    From the time you first began ruling the number one slot to now, what kind of shift in audience taste have you witnessed?
    Today, the larger group of the Indian audience has got younger. Audiences have moved away from demanding regressive content to content that evokes an open belief system. Meanwhile, the market has also expanded significantly from being metro-focused to being small town focused. Market has moved up both in terms of measurement and penetration. So there are more people and players coming into the category than there were in the past. There has been an enormous growth in the regional sphere as well. All this taken together has led to a significant upgradation in the quality of content, viewership and competition, bringing in a fundamental change in the minds of the consumers.

    Was that the primary reason to do away with Balaji’s saas-bahu sagas?
    It’s nothing to do away with. We thought that we needed fresher and younger shows coming in because a show that has run for nine years obviously needs to be refreshed. I don’t think in any part of the world a show can continue for so long. The K-series had a good run and did brilliantly for the channel, but then changes were prevalent and we responded to them.

     

    Star Plus, anyway, still continues to source a few shows like Tujh Sang… and Kis Des Mein Hai Mera Dil from Balaji and they are still a part of the producers list who work with us.
    It seems whenever audience starts responding to a certain kind of show format, the other players follow suit. So is there any differentiated content actually existing?
    Of course there is! Everything has to be differentiated if you want to drive in viewers.
    ‘In Star Plus’ revenue mix, the afternoon band contributes 15-20 per cent. We plan to build up on our existing bouquet of shows‘

    Are social issue-based formats driving the current GEC programming?
    Issue-based topics have always been played upon on television as it reflects society and further helps establish connect with the audience with relevant societal discussion points. So, it really does not mean copying content. We are not here to talk about social issues in a fashionable way, but yes everything has to have a concept that connects with the society emotionally and entertains them as well. For example, Bidaaii which is a tale of the dark skinned versus the fair skinned sisters or for that matter Laadli which reflects love for a girl child. It reflects society but is surely weaved into a concept that is contemporary to the society today.
    So what kind of changes have you brought in to your programming strategy?
    Our shows have always been about hope, optimism and family values with a further support from a high level of romanticism. So there has not as such been any drift in our strategy. Thus, Star Plus will continue to target the women-oriented mass India audience between the age group of 18-35. Family will, of course, remain our secondary audience that will be driven in by reality shows and movies.

    What are you doing to beef up your afternoon band?
    We are already running three shows in our afternoon band -Tujh Sang Preet Lagayi Sajna, Hamari Devrani and Star Vivah. All of them are performing quite well for the channel, driving in a lot of women audience in the afternoon band. This contributes 15-20 per cent to our total revenue. So, right now we plan to build up on our existing bouquet of shows.

    Can you elaborate on your marketing strategy?
    Apart from the usual print, radio and television, we are getting aggressive on the digital space. Activating ideas cleverly is another very important segment that we are working upon to create hype and excitement for our various properties. On-ground activation has also become an important part of our marketing mix to create an interactive interaction with consumers that will help in attracting newer eyeballs.
  • ‘It is better to play in the tier 1 GEC game and go out with full ammunition’ : Rajesh Kamat – Colors CEO

    ‘It is better to play in the tier 1 GEC game and go out with full ammunition’ : Rajesh Kamat – Colors CEO

    Viacom and Raghav Bahl-promoted Network18 are furiously working together to create an entertainment conglomerate in India. The central piece in their build-up plan is a Hindi general entertainment channel (GEC) that would support other blocks like a Hindi movie channel and a clutch of regional entertainment channels.

     

    Colors has had a dream nine-month run, ending Star Plus’ nine-year rule to become the No. 1 GEC for two consecutive weeks. Puffed with big reality format shows and movies, the channel has made a mark with “disruptive” and “differentiated” content. Family dramas like Balika Vadhu, which are contrarian to Balaji Telefilms’ “K” soaps, have been lapped up by audiences.

     

    Driving Colors’ growth is Rajesh Kamat, the strategist behind the big bang theory who loves to fire at his enemies from all sides. Crafting a plan built on costly but calculated bets, Kamat has shown that a direct play in the tier I GEC space is safer than a cautious, cost-conserving approach. Playing in the tier II game can extend the channel’s break even by four more years while the revenue upside for the tier I GEC is huge, he says.

     

    No wonder Colors is eyeing a revenue of Rs 5 billion and a fourth-quarter break even this fiscal as the channel sits on a stable GRP (gross rating points) base of over 250.

     

    Timing has been key to Kamat’s success as has been the ability to take risks. When Colors launched last year, TV audiences were already showing fatigue symptoms with an overdose of look alike, urban soaps. The movie syndication business had also caught on, allowing Colors to line up a formidable “second run” movie strategy within reasonable costs. Studio18, a sister company engaged in the movie production and distribution business, also churned out hits during the year.

     

    Having spent his previous years at Rupert Murdoch’s Star India, Kamat has learnt the art of scaling up. He is ready to stitch advertising deals that would place Colors in the big league with revenues of over Rs 5 billion, kick in pay income, and take it to the international markets.

     

    The distribution deal with TheOneAlliance, which has Indian Premier League (IPL) content through Max channel, will help Colors in making a smooth transition to pay. Besides, the deal guarantees the Viacom18 channels of Colors, MTV, Nick and VH1 a subscription revenue of Rs 3 billion over three years.

    In an interview with Indiantelevision.com’s Sibabrata Das, Colors CEO Kamat talks about the challenges that Hindi GECs face in a ring that has three close competitors.

    Excerpts:

    How significant a feeling is it to end Star Plus’ nine-year rule as the No. 1 Hindi GEC and yet continue to fight weekly for the top slot?
    For a challenger brand like Colors, it was important to breach the psychological barrier and feel life at the top. But we realise we are entering into a bloodbath as there would be no undisputed leader in the Hindi GEC space. From now on, it will be a weekly battle as Star Plus will not give up its nine-year rule so easily. Zee TV is also in the race. Like in the US, we are headed for a confused leadership status with dependence on spikes and seasonality.

    So you are still in an uncomfortable position?
    Not really. We have reached a stable base of 250 GRPs (gross rating points) from our programming. And we are not banking only on Balika Vadhu, which is the biggest perception driver show for us, for our ratings. We have a basket of shows that rate over 3 TVR. With movies, we are stable in the 280-300 GRP band.

    There are other healthy indicators. Our reach at 73 per cent is higher than that of Star Plus. Our prime time GRPs are also higher.

    Movies seem to be a divider between Star Plus and Colors at this stage. But isn’t this a fickle GRP base?
    Even if we fall by half, we will have around 25 GRPs from movies. And then there will be spikes. We have created a stable base for us. The idea is to grow from this.

    Are you in a position now to play first run movies on your channel?
    Absolutely. After establishing a base of over 250 GRPs, we are in a position to upgrade to a first run of movies on Colors as we can monetise our investments on such big premieres. Our plan is to have at least eight premieres in a year. Ghajani and Jaane Tu…Ya Jaane Na are steps in this direction.

    There is also the flexibility of launching the afternoon band. When will you be playing this card?
    We do 22-23 hours of weekly programming as against 33-38 hours done by Star Plus and Zee TV. Our weekends are not full blown and we have the afternoon band to create. So when the need arises, we can increase original content on our channel to drive in more GRPs.

     

    We were actually tempted a couple of months back to firm up our afternoon strategy. But we decided instead to replace our weaker prime time content at 9.30 pm and 10.30 pm as they were not delivering to the potential. The rejig strategy worked for us as Naa Ana Is Desh Ladoo started delivering. Since the afternoon slots are also doing well with repeats, we can launch an assault with original shows when the need arises. That part of the arsenal we are yet to use.
    ‘After establishing a base of over 250 GRPs, we are in a position to upgrade to a first run of movies as we can monetise our investments. Our plan is to have at least eight premieres in a year‘

    Stable GRPs, movies, afernoon band yet to launch – are these the selling points to advertisers?
    When we launched last year, we were clear in the head that we would only do short term ad deals and at rates we were comfortable with. The channel, in any case, was growing and we believed our product offering was worth much more. We did not want a hangover of the old deals. Come 1 April and we are operating on effective rates which is clearly off old deals. It’s a free run this year and we have stitched new deals at rates which have come from a position of over 250 GRPs. Yes, we tell advertisers that we are stable on GRPs, we have 14 hours to launch, and we have these rockets in form of reality shows which are to come up each quarter.

    Is Colors targeting a revenue of Rs 5 billion and a fourth-quarter break even this fiscal?
    I can’t comment on the financials, but monetising of GRPs is our primary task now. This year will become the base and benchmark for us. For our big properties, we have already signed with Idea as title sponsor for Khataron Ke Khiladi (Fear Factor) and Maruti Suzuki for India’s Got Talent.

    Is it true that Colors’ programming budget this fiscal is Rs 4.25 billion and the running cost is at 20 per cent above rival GECs?
    When I was at Coca-Cola, I learnt how they used to pump in 70 per cent of their ad budgets in seasons. That is what we did; our annual budget is like the other big GECs while the perception we have built in the market is that we spend big monies on content. You either pump in the money upfront or spread it out. When we launched, we had Khataron Ke Khiladi and backed it with Bigg Boss 2. We fired two missiles, hoping at least one would hit. As it turned out, both became hits. And we used Akshay Kumar for our content, which also helped in marketing our channel. Obviously, non-fiction can’t sustain on weekdays. But we used Bigg Boss to build Uttaran.

    Also, our concept of cost control is reducing the number of hours of original content. Unlike conventional media thinking, we provided alternative time slots for our prime time content and introduced repeats in the afternoon band. At a time when there is so much of audience fragmentation, this worked and maximised our reach. The afternoon repeats got us good ratings.

    Considering the Hindi GEC ecosystem, is it not strategically imperative to go for a big bang theory than fiddle in the mid-rung space with low costs?
    It is better to play in the tier 1 game and go out with full ammunition than take a cost-conserving approach and prepare for gradual growth. The revenue upside is much higher if you have touched 250 GRPs. By playing in the tier II race, you are effectively pushing back your break even by four more years. You would probably save in programming costs, but distribution expenses would be the same for both the players. And if you haven’t quickly moved from a consumer push to a pull situation, you would continue to pay high on distribution. In case of Colors, we will be actually reducing our payout to cable operators in the second year. On top of that, we could turn into a pay channel.

    Were you not fortunate in that viewers were looking for a change from the ‘K’ soaps (Kyunki…, Kasauti… and Kahani…) and nobody was willing to take a risk in providing differentiated content?
    The time was favourable in that there was a fatigue built in for the kind of soaps that were running on Indian television. We made disruptive and differentiated content our main plank. We were willing to take a calculated risk; our concepts were different and on the riskier side. But they worked.
    Even the movie syndication business caught on at the time of your launch. How helpful was this?
    The strategy was to go second run on movies. We could play on that gameplan because the syndication market opened up. This made it feasible for new players like us to keep our movie slot alive within reasonable costs.

    How was the content strategy drawn?
    Broadly, between 7 to 9 pm, we placed shows that had strong appeal among non-metro masses as that is the time zone which attracts viewers from smaller towns. The 9-10 pm slot had content tailored for smaller towns as well as metros as there is an overlap of viewership. The more urban shows like Fear Factor and Sajid’s Superstars were placed at 10 pm.

     

    More specifically, we knew there was a vacuum, particularly among the Gujarati viewers, in the 8.30 pm slot after the exit of Kasauti. We placed Jai Shri Krishna (JSK) in that time slot. we worked out such micro details while planning our programming grid.

    When Star Plus launched Kaun Banega Crorepati, it built lead-in slots. Wasn’t your strategy different in that your showpiece programme Khataron Ka Khiladi was at 10 pm while the other main shows were before that?
    We couldn’t have launched Khataron Ke Khiladi at 9 pm; it had to be 10 pm. It was our differentiator show and Akshay Kumar gave it the scale.

     

    Our first task was to get noticed, invade into single TV households in prime time, and shake up the house. Outside this, we built slots through a different kind of programming slant. Balika Vadhu, for instance, was a family drama based on child marriage and carried a social message. What followed was the lead-in concept. We now own 8-9 pm and 10-10.30 pm.
    Any specific strategy for timing the launch of Colors on 21 July?
    Since IPL (Indian Premier League) was in April-May, we knew it would disrupt GEC viewership. We saw that as an opportunity to launch Colors post-IPL. It was also 2-3 months before the Diwali season, a hot time for advertisers. That gave us a window to settle in.
    The market talks of Rs 800 million as your distribution cost for the first year?
    Without getting into figures, let me tell you that we took a conscious decision to take space on cable networks next to Star Plus and Zee TV. That outlet was reasonably expensive, but it gave us strategic reach.
    Why did you decide on TheOneAlliance to distribute Colors when it turned pay?
    Besides the monetary offer (rumoured to be Rs 3 billion over three years for the Viacom18 channels of Colors, MTV, Nick and VH1), it was the IPL that swung the deal in favour of TheOneAlliance. Since we turned pay on 1 April and the IPL kicked off on 18 April, it was a good window to make the transition and yet not see impact on the ratings.
    Will there be any revenue inflow from subscription this fiscal or will it be offset against carriage fees?
    We may not see any net gain from pay revenues this fiscal, but we have a step up plan and the second and third years would be crucial. For the first six months, in fact, what we payout will be more than what we collect. If the cable operator switches us off, he will stand to lose more. This will act as a disincentive for him to switch us off. Importantly, we have done almost 80 per cent of the cable deals.
    Is Colors planning to spread its wings outside India?
    We will be launching in the US within 3-6 months. We then plan to reach Dubai before we land in the UK. International revenues fall straight into the bottomline.
    Colors has also opened up syndication revenues with JSK being licensed to Raj TV. How aggressive will you be on this?
    We are looking at syndicating our other shows like Balika Vadhu. We are getting queries from Doordarshan and other networks for some of our content. We are also eyeing the global syndication market. But we have to be careful and conscious that this doesn’t jeopardise our beam syndication plans.
    Will Viacom18 launch a Hindi movie channel and enter into regional language channels?
    Before diversifying into new products, we want to build on Colors. We want the international distribution and market to stabilise before we launch anything. We will prioritise then, based on which is the most growing pocket – a Hindi movie channel or regional channels. That is a call we will take at that stage.
  • ‘If there are large eyeballs to address with local content, we will do it’ : Sumantra Dutta – Star country head, Middle East, Africa and Pakistan

    ‘If there are large eyeballs to address with local content, we will do it’ : Sumantra Dutta – Star country head, Middle East, Africa and Pakistan

    Star is eyeing growth in Middle East, Pakistan and Africa. Which is why it has created the new post of country head for these three markets and appointed Sumantra Dutta, who has been in the News Corp family for 14 years, to take up this role from 1 July.

     

    Dutta rejoins Star from News Outdoor India (News Corp‘s out-of-home subsidiary), where he served as the company‘s managing director.

     

    Dutta was also involved in the FM radio start-up venture and successfully established Radio City as a strong brand with a revenue that fell just below market leader Radio Mirchi which had a seven-station presence compared with Star‘s four.

     

    Prior to this, Dutta led Star India‘s advertising sales and marketing teams.

     

    In an interview with Indiantelevision.com, Dutta talks of his new role and the company‘s growth plans in the three markets that he will spearhead.

     

    Excerpts:

    By creating the new post of a country head for Middle East, Africa and Pakistan, has Star identified these three as high growth markets?
    Middle East is emerging as the hot spot for growth. Pakistan is also expected to boom because of globalisation. Africa is an almost virgin market for us and there is scope in taking our channels to various countries there. The businesses in these three markets is under exploited. The task is to identify the opportunities, develop distribution, push ad sales.

    Will Star‘s effort include localising content for the Middle East market?
    India and the Middle East share similarities in TV content consumption. In India, Star Plus is the leader channel and the Star bouquet is very strong. The task is to aggressively grow the Star brand in the region. The need to develop connect with the larger audience base is always there. We will study the market and find the right profiling, language and content offering.

    Even Zee network had to experiment with local content for further growth. Is the advertising revenue skewed heavily towards local content?
    The television ad spend in Middle East is broadly in the region of $1.5 billion. The free-to-air (FTA) channels account for 90 per cent of the total ad pie and within this category, Arabic content gets the lion‘s share.

    So will Star get into local content with local partners?
    There is scope to grow ad revenues even within the pay-TV segment. The Middle East is booming – be it in real estate, tourism, or other areas of business. Star has clear plans in servicing the burgeoning demand in this market. If there are large eyeballs to address with local content, we will do it. But our first task is to study the market and identify the gaps.

    How challenging is the Middle East market to conquer?
    The challenges are similar to that of India. It is a highly competitive environment and has about 360 channels beaming into the region. The only differentiator is that media buying and planning is much more sophisticated in India. The idea is to put the learnings of this market in place in the Middle East.
    ‘I have the added advantage of being associated with Star‘s start-up businesses. The size of the business is really in the opportunity that it throws open for the company to exploit‘

    Isn‘t the distribution scenario also a lot more different?
    Distribution is much more organised than in India. The region has DTH (direct-to-home) and FTA. In India, cable TV continues to be strong. The idea is to also find newer channels and revenue streams. The mobile telephony base, for instance, is big and Star has not tapped this segment.

    What is Star‘s strategy going to be in these three markets?
    It is too early for me to define that now. But we need to go into a higher growth trajectory. Faster, higher, stronger – that is the credo. We will play the same game but with more attitude. We will be growing the team – because you are only as good as your team. The idea is to go and knock the ball out of the park.

    Don‘t you feel that you are being continuously marginalised into businesses that are relatively smaller in size than what you were earlier handling being part of Star India‘s core team in the broadcasting arena?
    I have the added advantage of being associated with Star‘s start-up businesses. I moved from the high of television to the FM radio space. I was out not to just launch a FM radio station, but to kick-start the entire category. In the outdoor advertising business, the challenge was to bring respect to the category and get the local administration lease out long-term contracts. The size of the business is really in the opportunity that it throws open for the company to exploit.

    Since News Corp is globally getting out of the outdoor business, is the India part up for sale?
    I wouldn‘t like to comment on this.

    For somebody who has been associated with Star for such a long period, which are your most precious moments?
    The launching of Star News in 1998 and National Geographic Channel in 1999 were momentous events. But nothing beats the launch of the Amitabh Bachchan-hosted game show Kaun Banega Crorepati (KBC) in July 2000 as it changed the fortunes of Star in India.
  • ‘We’re not going in with a pistol, we’re going with a cannon’ : Rajesh Kamat – Colors CEO

    ‘We’re not going in with a pistol, we’re going with a cannon’ : Rajesh Kamat – Colors CEO

     Rajesh Kamat, CEO of Viacom18’s Hindi GEC Colors, has a clear mandate – to ensure his upcoming channel a position amongst the top 3 players in the category within a year of launch.

     

    In a genre where Colors is the 10th entrant, Kamat has his task cut out and will have to bring to bear all the experience he garnered in earlier stints as MD of Endemol India and senior VP commercial & business planning at Star India.

     

    Speaking to Indiantelevision.com, Kamat gives his take on the whys and wherefores of the most expensive channel launch activity ever undertaken by a Hindi GEC.

     

    Excerpts:

    What would you term as the core TG for Colors?
    While we propagate programming that appeals across, if I have to specify a core TG, 15 to 34 is a number I would peg ourselves on.

     

    In a GEC, the 15 to 34 is what gets you your first one third. The 25 + is where the loyal audience starts. What we’re doing is, we’re getting the early adaptors and the initiators in the first phase. Once we get that, we’ve made our entry into the single TV households. That’s when you start consolidating. And the consolidation phase is actually your 25+ female. Though males would come in, that consolidation phase would focus on the female.

    That aspect of your programming focus is not reflected in either Fear Factor or in Mohe Rang De, the two shows that have been showcased thus far?
    Not right now. What happens is, with these differentiated and disruptive programmes is that you lock in your first eyeballs. With big movies as well.

    So you will have a big band for movies?
    Absolutely.

    But where will they come from? Isn’t the market more or less locked in as far as movie titles are concerned?
    These will be new ones. Now the market is moving towards syndicated movies – first airing, second airing, third airing… So there are quite a few lots floating around.

    Your entry into viewer mind space will therefore be with these tent pole shows and movies?
    I would not say entry into mind space. But the invitation card to viewers, if I can put it this way, would possibly have highlights on these. Because these are the ones that will actually draw the attention of the early adaptors and initiators.

     

    But while doing this, we will have the conventional shows that we believe will compete in the long running rating game.
    ‘Audience flow at an earlier point used to be from a Kasautti… to a Kahaani… and then on to a Kyunki. Because they (the majority) liked the same kind of shows. Those days are gone‘

    Will you be putting out your big movie titles in this six month window?
    Absolutely. Be it big ticket reality shows, be it events, be it movies; that’s where you’ll get the sampling. As for differentiated content, it would be a Mohe Rang De, typically.

     

    We see it that 300 GRPs is the target. But it is all this activity in the initial six months that will give us the 100 GRPs (base to build on).

    How will you crack the balance 200?
    Once you cross 100, it is all about adding 3, 5, 10 GRPs week on week That is what will take time. This is not a T20 game.

    Isn’t that something that all the channels in the chasing pack (to Star Plus and Zee TV) have failed to crack? How to cross the 100 GRP barrier?
    Imagine is three-four months old. I take it as a compliment (to them) when somebody tells them that they can’t go beyond a 90 or a 100. To get to a 90 was not simple. A Star One with all the clout of the Star network behind it opened with a 19 GRP, 9X was 20. Imagine opened at 55, and went to 89 in a short time. But from now on, the growth will be slow.

    Which raises the question for you? These past three months has seen Imagine make a fast take-off and 9X slowly and surely build its story. That means among the new entrants two have already succeeded and are fighting it out for the third position. And way above them we have the strong number 1 and 2. Is that how you’re looking at it in terms of the distance you have to cover?
    Not quite. It is not necessarily going to be a 2 + 2. It could well be a 1 + 3. If that becomes the game, the difference between a 300 and a 150 might grow larger. And Star might gain back whatever its premium was, if at all. That remains to be seen.

     

    But if we have such a scenario, the balance three, 150 and 300, or 150 and 100 or 150 and 120 there’s a game. Two players at 120 each and one player at 80, is better than one player at 150.

     

    Again, this whole game is about sustenance. It’s financial investors versus strategic investors. What is the mindset? Are you looking at ‘first year I have to extract this much money’?

    You’ve identified six months as the time frame to embed yourself in viewer mind space. That all three new entrants might succeed is not a scenario that most experts have even considered, let alone thought possible?
    If you take the US as an example, three networks used to account for 90 per cent eyeballs. Today the same three networks get 35 per cent eyeballs.

     

    Even in India, where people used to talk about 70 per cent of the audiences flowing from one show to another, is a thing of the past. Now, there is nothing like saying I go from this show to this show on the same channel. It doesn’t go vertical. You actually migrate between channels based on the shows you like. That’s how the viewership pattern is going.

     

    And it’s not also as if the same person in the same household is watching. You’re aggregating different types of eyeballs. There is no linearity in terms of audience flow.

     

    Audience flow at an earlier point used to be from a Kasautti… to a Kahaani… and then on to a Kyunki. Because they (the majority) liked the same kind of shows. Those days are gone.

    So if we were to draw a one liner on why players like yourself believe you are not too late getting into this game, it would be because linearity in terms of watching schedules are a thing of the past?
    Absolutely. People will watch shows and come in and go out. That’s what it is and that’s what we’re moving into as a market.
  • ‘We see GEC as a long-term game. We are playing a Test match and not a T20’ : Indrani Mukerjea – INX Media Pvt Ltd founder-CEO

    ‘We see GEC as a long-term game. We are playing a Test match and not a T20’ : Indrani Mukerjea – INX Media Pvt Ltd founder-CEO

    From starting as a human resource (HR) consulting firm in 1996 to entering the fast-growing broadcasting space, INX Media has travelled a long way.

    INX’s music channel 9XM has notched the top position in its genre while the general entertainment channel (GEC) 9X is making slow but steady strides.

    Next in the roll-out pipeline is NewsX. Despite controversies dogging the news channel venture with the exit of Vir Sanghvi and his senior editorial team, plans are being put in place to launch the channel in March. Regional channels are also part of INX’s growth agenda.

    In an interview with Indiantelevision.com , Mukerjea talks about her company’s growth plans.

    Excerpts:

    INX was a recruitment search consultancy company that you ran successfully for years. What pulled you to the broadcasting space?
    Despite being a human resource consulting firm, INX has been very inclined towards media placements. In the last 10 years, a majority of our placements have been in this sector. Besides, Peter (Mukerjea – husband, chief strategy officer INX Media and former Star India CEO) has 14 years of experience in the television industry.

    But isn’t the mainstream broadcasting space too cluttered?
    More and more channels are launching and doing fairly well. There is clearly a new emerging audience. You have seen how our music channel 9XM has grown ever since its launch. What is happening is that the gap between the number one and number two channels is decreasing. We are even seeing it in the GEC (general entertainment channel) space. The viewer base is also expanding; more and more TV sets are being bought. Moreover, viewership is getting fragmented; different viewers are liking different genres of entertainment.

    Though 9XM has shown rapid growth in the ratings game, it is a channel that runs songs without breaks. What does the revenue front look like?
    I think viewers like to watch full songs. That is why we are getting good ratings. When it comes to revenue, there are Coca-Cola and Vodafone who have joined 9XM as platinum partners. Also, though we have not put in so much of commercials, we still follow the pattern of 12-minute break. We use this duration to show our channel promos. As more ads come in, the same space will be used.

    Isn’t the growth of 9X, your flagship Hindi general entertainment channel, on the slower side?
    If you notice, we started with only two hours of prime-time programming and have added another half an hour in the last fortnight. Only by the end of June, we will be completing our four hours of prime-time programming. And that is the strategic decision we took very consciously.

    We see GEC as a long-term game. We are playing a Test match and not a T20. We want to build this block by block. The critical part is to stay there. It is very important to sustain. So, we have a five-year plan in the horizon to which we are sticking, and this is what I believe is going to make us sustain.

    So you are thinking of breaking even after five years?
    No no, breakeven will be before that. We are talking about long-term plans with short-term goals. And we are executing all our plans; you’ll see it in the coming three months.
    ‘We’re well funded. So it’s easy for us to make long-term plans‘

    But there are other channels like NDTV Imagine that have shown faster growth in a short term?
    We have been funded very well, and that’s why it is very easy for us to plan ahead. When you are backed by strong financers, you can make long-term plans. We don’t have to run and do full-time programming.

    Your programme ‘Mission Ustaad’ failed commercially?
    We did Mission Ustaad as part of our corporate social responsibility (CSR). We were very clear from day one. The priority was also to establish the brand first. Now people know that there is a brand called 9X. You go to any part of the country, and people know about 9X.

    Aren’t you pumping in a huge amount of money for distribution and promotion?
    Absolutely! For us, 9X is an institution and not just a channel. It’s very important to establish a brand, and once that is done, it becomes important to keep the hammer ready. This is what happens when any new channel comes into play: first, it establishes the brand; then it waits for the right moment to strike “big”.

    Also, whoever goes up quickly has a tendency to go down as well. So we are patient. Our investors are long-term players. It’s not that if we pull out a programme, things will crash. We have not launched a channel based on one programme.

    And now, as we’ve established ourselves, I think we need at least another five months to bring in full programming. Strategically, it’s like a baby in my mind: a baby takes shape in nine months and we feed it when it’s born.

    On the ratings front, only one show has TRP of over one. Besides, isn’t it true that the channel’s GRPs are mainly being driven by movies?
    No, the report which we’ve got from Tam shows that 32 per cent of our GRPs are from movies while 54 per cent are from serials and 14 per cent from other shows. At the end of the day, when you are planning a channel, you have to think about overall GRPs, and we have taken a conscious decision not to bombard viewers. Now we have Chak De Bacche, Yeh Hai Jalwa and other programmes lined up. We are also having some serials which we will announce in due course.

    As a syndication deal, have you paid Sony Rs 400 million for 60 movies?
    That’s absolutely wrong information. The actual amount is not even half of it.

    What do you think about syndication of movies as a business model?
    It is a very good decision because at the end of the day the viewer is entertained and we, as a result, stand to gain. For example, with Jab We Met, we got fabulous advertisers, ratings. If I am calling it a family channel, I will have to provide content for the entire family.

    Mythologies seem to be coming back on Indian television. Is Ekta Kapoor doing Mahabharata for you?
    No, Ekta is not doing Mahabharata for us. I have also heard it, but Ekta and I have not spoken about making Mahabharata.
    But what do you have to say about the invasion of mythos?
    Mythological content has always been a part of Indian television. Be it Sai Baba, Sri Ganesh, Jai Maa Durga, Jai Hanuman – they have always been there. But it’s important for a channel not to overuse such content. You have to have a combination of movies, serials, soaps, fantasy, reality, etc. A good mix is essential.

    When are you launching NewsX?
    Our test signals are already on, and we have roped in Karan Thapar’s firm Infotainment Television (ITV) as editorial advisor to the channel while Arup Ghosh is our newsroom head. We will hopefully launch the news channel sometime in March; I can’t specify the date, but it will be in March.

    What content will the channel focus on?
    It will be analytical, in-depth news.

    How will it be different?
    You have to watch it to notice the difference. Our main studio is in Delhi; our Mumbai studio is under construction and is almost done.

    Are we going to see more channel launches from INX Media in 2008?
    The first priority is to complete the schedule and get NewsX up and running. We will also be launching regional channels.
  • ‘Star One is the number three GEC in the country in ratings’ : Prem Kamath – Star India VP marketing and Communication

    ‘Star One is the number three GEC in the country in ratings’ : Prem Kamath – Star India VP marketing and Communication

    A lot of flip-flop happening in the Hindi general entertainment channels. Yet Star Plus is the leader in the game, while Star One has consolidated its position on the back of new shows and re-positioning itself.

    In conversation with Indiantelevision’s Nasrin Sultana, Star India VP marketing and communication Prem Kamath talks about Star Plus and the kind of resurgence up on Star One.

    Excerpts:

    How has 2007 been for Star India?
    I think it has been a good year of consolidation. Lots of changes have happened within the organisation and in the market as well. But I think the initiatives that we have undertaken had shaped quite well for consolidation.

    How is Star Plus taking the competition further, when Zee TV is edging close to it in terms of ratings?
    Zee TV saw an increase in the ratings post Sa Re Ga Ma Pa launch, which had narrowed the gap between Star Plus and Zee. Though there are a number of other things that have happened in Star Plus which have pushed the channel back to its place. Particularly the last four to five weeks’ data clearly say that Star Plus is considerably ahead of Zee. Several initiatives that we launched further strengthened our position. A weekly fiction based show called Sangam was launched in August. With Sangam, we extended our prime time to 7 pm, followed by Santan at 7:30 pm. Santan is doing extremely well in its time band with 2+ rating. Bidaai, which launched in the 9 pm slot is fetching good numbers. All the newly launched shows cumulatively have consolidated our position in the genre.

    What was the reason for extending prime time?
    Traditionally prime time was always considered to have started from 7:30 pm. But a regular viewer of TV generally gets near the TV around 7, so we thought why not extend our prime time. It sort of prepares the viewers for bigger shows lined up from 8:30 pm.

    Is it true that one of Star Plus’ big ticket shows – Kasautii Zindagii Kay – is going off air?
    Yes it is. It has reached its end. It was a mutual decision taken by both Star and Balaji. For further details you have to wait for a formal announcement.

    Star Plus poached Gajendrra Siingh and his whole team for Star Voice of India, yet it could not fetch the kind of business that Star Plus was looking forward to. What were the reasons that producers of an old and successful show like Sa Ra Ga Ma could not deliver so well on the Star platform?
    Any show’s success is attributed to three or four parameters. There is no direct comparison between the two yet there are some. Sa Re… is an eight to nine years old show, and Star VOI just debuted this year. I think for the first year it has fetched good TRPs. It has garnered 4 to 4.5 TRPs. Besides, it has been extremely consistent with ads. Above all, it has been able to give competition to an old and established show.

    Soon after VOI reached its finale, you had Chhote Ustaad to compete with Zee’s Li’l Champs on the same slot? Where is the differentiated programming?
    It was part of an intended move to retain viewership of the VOI slot. It enjoyed a TRP of 2.8 in its initial weeks. As far as reality shows are concerned, I think these kinds of shows build and develop a relationship with the contestants. The viewers come back on the same show for the bondage that they share with the participants.

    How has the story of Star One been shaping up now?
    What you see now in Star One gives you a feel of serious resurgence. Star One is the number three GEC in the country in ratings. In the last four to five weeks, we have been garnering about 76 GRPs in all day parts, which is about 49 per cent up as compared to the period four weeks before that. This is on the back of the four properties that we have launched recently.

    We launched Dil Mil Gaye, which has touched a TRP of 2, Annu ki hoi gaya Wah Bhai Wah, Choona Hain Aasman, we are launching Pari Hoon Main in the next week, which kind of completes our week day prime time. In the week end we have launched Bol Baby Bol which again has a TRP of 2. We have tasted fair success with Chak De Punjabi. There are lots of vacant time bands in Star One which has not been programmed. There are couple of other shows which will make Star One as the big player in the space.

    With so many launches are you reinventing Star One?
    Yes we are, I mean kind of. Star One was one of the most successful launches seen in the space. We had a great success story. But yes, somewhere down the line, we shifted focus for a variety of reasons. In terms of programming, Star One ended up becoming very similar to Star Plus. What we are doing now is to re-define Star One’s programming for a differentiated market.

    Star One is now completely redesigned, with a universal appeal, yet differentiated. If you take Bol Baby Bol, hosted by Adnan Sami. It is a reality format show, which has mass appeal, yet it is differentiated as it is a lyrics based show. This is a first of its kind show in India. This goes out for Annu ki…, Pari Hoon Main, Dil mil Gaye and Choona Hain Aasman.

    Shows of this kind have a lot of drama in them, yet they are differentiated. Context and sensibility makes them differentiated.
    ‘Nach Baliye grew so huge that it needed a bigger platform than Star One could afford to provide‘

    Do you think that at one point of time Star One was almost a shadow of Star Plus?
    Hmm, yes when more than a year back, when some of the shows of Star Plus were brought on Star One. Somewhere there had been a duplication of identity.

    But now Star One has defined itself and is certainly differentiated from Star Plus in all respects. Star Plus is a complete family entertainer while Star One’s TG is fixed at the 25-34 age in the top 20 cities.

    When Star One launched, it had set its TG as totally urban youth. Do you think the TG could not contribute anything to Star One’s success?
    What happened was, by default, whatever shows were on air were urban skewed. But some of the programmes did have universal appeal. Like Nach Baliye, which had a phenomenal success, had universal appeal. Same goes for The Great Indian Laughter Challenge.

    A flagship show like Nach Baliye, which has its contribution in putting Star One in the success grid was shifted to an already successful channel and Star One was left only with The Great Indian Laughter Challenge?
    Nach Baliye is a big show. With every year, it grew in volume and economies. It grew so huge that it needed a bigger platform than Star One could afford to provide. The show was so large that it needed a platform like Star Plus to do justice to it. The shift has also got some new shows infused in Star one. It is not that Nach Baliye was uprooted from Star One and nothing was done to Star One. We had a series of launches after it. The good news is that even when Star One does not have Nach Baliye, yet it is on the verge of becoming number three in the GEC space.

    Even The Great Indian Laughter Challenge has been taken off from Star One?
    It is only in its seasonal break. It will come back in a couple of months. There was fatigue after the three seasons were back-to-back.

    Did Comedy Circus on Sony contribute to the fatigue?
    I think Comedy Circus was after LC. It did not have any effect.
    Star One is re-running its popular show Sarabhai vs Sarabhai in its prime time at 9:30 pm. Why not bring it back with new episodes?
    Lots of people are asking for it. Logistically we are working out the possibilities.

    How do you shape up your marketing for the various properties that Star India has?
    We always get the consumer engaged and get the consumer to experience the brand. Many properties on Star Plus have been marketed well on ground activities. Our effort is to shift the focus from mass media to on ground, engaging one-to-one communication with the consumers. Information has to be transferred to the consumer without any barrier in between. That is what an on-ground activity does. It breaks the barrier.

    Properties have been marketed well, whether it’s the on-ground event, road show or a mega event. We are constantly getting more and more into it. It is what we call engagement model. It is nothing but to engage the viewers with the brand, so that they experience more of the brand. We have rounded off 16-20 cities. Before any launch, we actually do a variety of activities and events in these cities.
    Do you see the launch of NDTV Imagine as a threat, if not to Star Plus and Zee, then at least to the lower rung channels where competition is getting tougher?
    The space will get fragmented. Connection with the audience is the best way to beat the competition. Star plus has been doing it extremely well and it will continue to do so.

     

    Some of the major content providers like Hats Off, Sagar Arts and SOL are also working on the up-coming channels. Do you agree that is going to create some conflict?
    I agree that producers bring a lot to the table. With so many channels floating in the market, I do not think duplication of content can be at all avoided. A show being successful has many factors to it. First is the content, second is the platform it is on, and third is the relationship with it.

     

    Coming to Star World, you launched some TG specific shows in the middle of 2007. How has been the response?
    We introduced some familiar shows which got tremendous response, especially for the SEC A, which is the TG of the channel. Shows like Heroes and Desperate Housewives are working tremendously well. But we have to understand that the Star World universe is relatively very small.

     

    How does the story look like with Star Gold?
    It is faring well. It is after Set Max and neck and neck with Zee Cinema. There have been lots of other properties that Star Gold pioneered like Star Gold Sabse Favourite Kaun and Star Gold Comedy Honours.

     

    Earlier Star Gold had dubbed movies, now there are movies channels completly dedicated to dubbed content. Which markets do dubbed content work?
    It works all across all the markets. Some of the films really work. Films which have good action and thrills work well in this genre.

    What was new to Star Plus in 2007? What’s on the cards?
    What you see now is certainly some freshness in its content, with some new launches in the year- Bidaai, Jai Maa Durga. We will get periodic innovation in the channel as and when required. Nothing is to be changed now.
  • ‘We are identifying short term tasks and medium term tasks to get to a new, bigger Star’

    ‘We are identifying short term tasks and medium term tasks to get to a new, bigger Star’

    It’s the festival of lights. And for many the festival of noise courtesy exploding fireworks. In the hope of reducing the number of those belonging to the latter tribe, we, at indiantelevision.com, decided to put a display of firecracker articles for visitors this Diwali. We have had many top journalists reporting, analysing, over the many years of indiantelevision.com’s existence. The articles we are presenting are representative of some of the best writing on the business of cable and satellite television and media for which we have gained renown. Read on to get a flavour and taste of indiantelevision.com over the years from some of its finest writers. And have a happy and safe Diwali!

     (Written by: Thomas Abraham in 2007)

    Two men under whose collective leadership rest the fortunes of Asia’s most powerful media conglomerate. In a way, there is a commonality in how both have risen to the top at Rupert Murdoch’s Asian media arm – from the blue as it were. It was just under ten months ago that Paul Aiello, a one time investment banker, was pitchforked into the hot seat of a company riven by internal power politics and stalled growth stories in the key markets it was operating in.

    Three months later, Aiello opted for another dark horse in then Star News CEO Uday Shankar, giving the newshound turned corporate honcho operational charge of India’s lead broadcast network and the difficult task of setting things right there.

    In conversation with Indiantelevision.com’s Thomas Abraham a day after Shankar was elevated to Star India CEO (on 25 October), the two offer their most detailed overview yet, of the media conglomerate’s plans for this market and the region as a whole. Excerpts:

    These are exciting times for the industry with the economy booming and the sector seeing 20-25 % growth. How does Star view all this? What are the key factors that will drive its growth? What could work as impediments?
    Aiello: I continue to be extremely excited about the market and its growth, even though there are numerous uncertainties. You can argue that there are regulatory uncertainties, uncertainties created by increased fragmentation in viewership and increased competition. But these things are to be expected in a highly dynamic market place.

    The challenge for us is not about focusing on what Star is. It is really about what should the next Star be? What should Star be in the next five to ten years from now? That requires a lot of internal focus and development of strategies. 

    So whether it’s about our core broadcast business where we must deal with increased fragmentation, regionalization… all the phenomena that everyone looks at, we need to be there. As well as looking at the overall growth in the media market and knowing that there are other areas that we’re not in as Star; but areas where we have tremendous capabilities within News Corp and in Star, that we should move in to and make sense of.

    So we’ve been through a strategic review process and now we are coming out of that and are identifying the short term tasks and the medium term tasks to get to a new and bigger Star.

    If you get detracted by a noise event like a new show that someone else has come up with in the last one week or some uncertain ruling or regulatory decision, you can get paralysed and miss what is the more important strategic initiative on where you want to be.

    It is really important to keep that strategic vision because then you become really disciplined to stand by what the vision is and do the execution of the steps necessary, whether it is people moves or moving into new areas of business.

    So which are the new areas?
    Aiello: Certainly we need to expand the footprint of our core business of our channels. In the next six to nine months, we are going to be launching more channels.

    Five channels?
    Aiello:     Five, six channels, yes. That is one manifestation of the extension of our core business. But we are looking at many other ways to build our business.

    Like for example?
    Aiello: News Corp has tremendous capabilities when it comes to films.

    Everybody was waiting for that. Are you going to go the Sony Pictures route? Will you be getting into movies big time and will that be under your mandate?
    Aiello:     It is something for not just me to decide, but Fox to decide. We work very closely with our sister companies at New Corp. Let us see what we can do together if such opportunities make sense.

    News Corp is pretty strong in new media, internet as well.

    MySpace?
    Aiello: Yes, MySpace, Fox Interactive Media.

    Ajay Vidyasagar will be on that I am told.
    Aiello: Ajay is very involved in our new media strategy.

    If Ajay will be overseeing that side of the business, there are also the content challenges that lie ahead. How will all this be managed?
    Shankar: Ajay did an amazing job in the last eight-nine months when there was a creative management vacuum when people had left and gone away. Now we have ramped up our content team. So there is Anupama (Mandloi), there is Vivek (Behl), there is Monica and two or three others who have come in. We’ve also created a structure which is more channel focused. So there is a general manager of Star Plus, who’s Keertan (Adyanthaya). There is a GM of Star One, that’s Ravi (Menon). So the day to day channel management activities have become pretty much independent and self contained.

    So, for any of the other senior management, including myself, we don’t have that kind of daily interface. Our task has moved on to doing strategic and long term planning for the channels. Our internal understanding is that Ajay is going to primarily spend his time in building the internet business. And that’s in collaboration with MySpace wherever it’s possible. And internally, we will do a whole lot of other things.

    Where MySpace might not be a partner?
    Aiello: That’s right. Star will have its own new media strategy. At the same time Star will work with MySpace, Fox Interactive Media, in as many places as it makes sense. 


    The times of 50-on-50 top shows is history and we could soon well have a situation of three to four networks fighting it out for top honours. How do you see that panning out? 
    Shankar: I really feel that in this market, in the entertainment space, for a long time will continue to primarily be a two player market. Maybe there might be a third player who will have a little bit of traction. Who that first, second or third player is may change, in two or even in five years time. But I still think that for many years, that is what is going to be the situation.

    The big difference will be this. Typically in broadcasting globally, two key players will be the ones making money. In this market, in GEC, simply because of the size of the universe, it is possible that if people have a disciplined content approach, even the No. 3 and the No. 4 can make money.

    And our advertising space is becoming so segmented. Not everybody has to take big corporate advertisers. Not everybody has to target the same clients.

    What it requires is for people to clearly identify their TG, their target geography and smartly design unique or signature content for these TGs. My big problem is that in category after category you see, people are just cloning the leader.

    The fact is that it has worked because of the very size of the market. News is a classic example of that.

    Shankar: It has worked. But the returns are diminishing. If you see sustainable leadership in whichever category, somebody has been able to challenge the leader’s content model. Star News did whatever turnaround it could manage because it did not follow the Aaj Tak route of live breaking news. It went into appointment viewing and other kinds of signature programming.

    Now what you see is that everybody is chasing one or other player. The same thing is happening in music. You are seeing more and more commoditization of content and less and less differentiation. That is a big challenge.

    I think distribution is a huge challenge for this market; copy content is a big challenge. And the third, I am not saying necessarily in that order, huge challenge is the shortage of original quality talent; which nobody is really talking about. It is the same talent that is going around.

    If you are smart, you change three jobs in two years, your salary will go up four times, and you will get three more promotions. That does not mean that the person’s maturity has gone up or that person’s quality of skills have increased.

    Aiello: This is an issue that applies not only of India, but practically to all of Asia. You have to get fresh new talent. It is critical nurturing them and taking risks in developing them. 

     

    So the three biggest challenges over the next three years are distribution, commoditisation of content and talent management?

    Shankar: In distribution, if you were to further focus, the two challenges would be, 1) to strengthen the cable infrastructure to allow more and more channels to be delivered to the end customer, 2) is to create a regulatory environment where premium content is encouraged by monetizing.it.

    Not everybody has to pay Rs 500. There should be a good, decent family package available for Rs 75; but, somebody who wants to pay Rs 500 or Rs 1,000 and get great content, should have access to that. It is not to make an argument that people should pay through their noses; but people should have a choice.

    What is your view on Trai’s mandating pricing in non-Cas areas? I am told that broadcasters, as in the IBF, are debating challenging it legally. 

    Shankar: If there is a regulatory order, then everybody will have to comply with that. Obviously we have no choice.

    But this kind of price cap in non Cas areas, in an Indian environment where there is so much of opacity in declarations of subscriber base, is going to be extremely counterproductive for this industry. Because you’re operating in a situation where the cost of distribution has become a very important line item for all broadcasters. Except for one or two channels like Star Plus, everybody else has to shell out a large sum of money on distribution.

    The problem is that this kind of artificial cap on value, when the input costs are not being controlled, is very, very counterproductive. A whole bunch of broadcasters and many of the niches are going to become uncompetitive because of distortions in the distribution space. I think this is going to be highly detrimental.

    Yet you have all these new launches, new networks coming up.
    Shankar: Three reasons. People have faith in the Government, in God and the Regulator. 

    ‘You have to get fresh new talent. It is critical nurturing them and taking risks in developing them’

    It’s ‘karma’ then?
    Shankar: Seriously, if you look at it, there are niche channels where 30-40 per cent of their opex is the distribution fee. It is clearly unsustainable.

    This is a market where the talent costs are going through the roof because of the supply side shortage. It is a market where new competitors are coming, so your content costs are going up. Because clutter is going up, your marketing costs are going up. And your distribution costs are going completely out of whack.

    There is not even a logical relationship. Last year what you spent has no bearing on what you will have to spend this year. And in this market what you spend has no correlation to what you spend for similar deliveries in an adjoining market. This is clearly an insane situation.

    Aiello: That is not to say that some of these people will not succeed.

  • Maruti in $ 1 million sponsorship deal for cricket World Cup website

    Maruti in $ 1 million sponsorship deal for cricket World Cup website

    MUMBAI: ICC internet partner Indya.com kicked off its campaign for the globe’s biggest cricketing carnival with the official launch today of its World Cup dedicated website cricketworldcup.com.

    The launch coincided with the confirmation that car major Maruti had come on board the site as presenting sponsor for cricket’s headline event. In what is being termed as the biggest online advertising deal negotiated in India in recent times, Maruti has committed somewhere in the region of $ 1 million (Rs 450 million) for the privilege of owning “most of the real estate” on the site, sources close to the developments say.

    Ajay Vidyasagar, Star India executive vice-president content and communications, while refusing to offer any comment on the size of the deal, said: “Maruti has made a significant investment in partnering with us and this is the only engagement we are announcing for the present.”

    “Maruti has always been at the cutting edge of technology and have always been open to explore and experiment with new ideas,” NDTV Media CEO Raj Nayak, whose company has been given the mandate to sell advertising for Indya.com for the World Cup, said. “I think this is a testimony to the power of the worldwide web,” Nayak added.

    It may be recalled that earlier, the sponsorship packages on offer involved one presenting sponsor and four associate sponsors. This has all changed because the size of the deal Indya has negotiated with Maruti. There will now be far less inventory available for other potential sponsors than had been originally envisaged, Vidyasagar explained.

    Speaking about cricketworldcup.com, Vidyasagar said, “We are committed to provide the most comprehensive and definitive website of the game during the tournament and assure our users an online experience that they will find unparalleled.