ITV

Tag: Taj Television

  • ‘Free sports channels from Trai pricing’-Taj Television COO Peter Hutton

    ‘Free sports channels from Trai pricing’-Taj Television COO Peter Hutton

    MUMBAI: 2009 was the year to be in a different industry. ESPN-Star‘s billion dollar investment in cricket‘s Champions League made the Dubai property market look a safe bet. The IPL riches were diverted into the pockets of South African travel agents. In the ICC‘s showpiece event, India‘s world champion 20-20 team batted so slowly they turned into the No. 1 Test team. India‘s hockey team fell so low, the world rankings needed a second page. The Commonwealth Games promises India Gold medals for bad publicity and even WWE‘s Khali lost whatever it was he‘d won the year before.

    Add that to world economic woes, rampant news channel piracy, illegal websites, Pakistan cricket, rain in the West Indies and having to move house, and you‘ve got my year to forget.

    On the positive side, 2010 is the year of the big event for Indian sports channels. The Hero Honda hockey World Cup, the IPL, the ICC 20-20, the FIFA soccer World Cup, the Commonwealth Games, India‘s tour of South Africa and the Asian Games all tumble after each other.

    The advertising incomes are looking healthier, DTH numbers are growing month on month and the range of big non cricket events can help change the perception that only cricket delivers value.

    2009 was the year when hardly any major new sports deals were done in India. The one exception was Nimbus‘s extension of the BCCI contract, a smart piece of negotiating by the Nimbus team that perhaps signifies a levelling of expectation from the cricket boards. That reality check on price is needed, but the doom and gloom on the value of Test and ODI cricket has been overplayed. The ratings still deliver remarkably consistently for meaningful cricket between well balanced teams in whatever format of the game.

    One of the less heralded legacies of the “Lalit Modi era” has been the quiet removal of the concept of each Test playing side playing each other Test playing side home and away. Zimbabwe and Bangladesh‘s best chance of seeing India these days is by booking a holiday in Goa. The BCCI is happy to travel to the smaller cricketing nations (giving Bangladesh and Zimbabwe the boost of TV and sponsor income), but they‘re not going to waste their precious home games on one-sided matches. It might not suit the ICC, but it works for both the BCCI and the other boards.

    2010 should finally see the unveiling of cricket‘s next six-year plan of fixtures, and what will hopefully see a “flight to quality”. More matches that promise even contests between well matched sides rather than meaningless three-day Tests and ODIs that are won by the toss.

    2009‘s seen plenty of talk of defending Test match cricket. My pet obsession is seeing how many Test matches are being scheduled to play Monday-Friday, as if designed to stop people watching them. The only people these matches suit are the administrators who get home for the weekend. Hopefully 2010 will see success in the pink ball, day night experiments and we will be on the way to Test cricket being played in prime time.

    The best piece of rescheduling I‘ve seen for some time is the Pakistan-Australia Tests in July 2010, which will now happen in England and will make the matches happen in prime time for the sub-continent audience. At a stroke, they become much more valuable for the sport as so many more people will be able to watch them.

    Pakistan‘s varied itinerary also saw the debut of Dubai Sports city as an international stadium. It‘s round the corner from my house, so I am slightly biased, but I believe it‘s the best cricket stadium in Asia for the viewing public. One of my hopes for 2010 is that it gets to see some regular cricket rather than sit as a dusty monument to Dubai‘s dreams.

    Away from cricket in 2009, the world hockey federation (the FIH) have shown faith in India to deliver a hockey World Cup that can revitalise the sport in the country. The evidence so far has been remarkably positive. Investment from sponsors (via the Commune agency) has poured in and the Hero Honda World Cup will be a true opportunity for the Indian game.

    The Indian team are showing signs of progress (third in the champions challenge). Hopefully, home conditions and passionate crowds can work in their favour and the final of the tournament in March will overshadow the start of the IPL on the same day.

    Zee Sports deserves full marks for bravery in their attempt to showcase Indian football. Plenty have tried and failed to turn the undoubted passion for Indian football into a marketable property. The emotion and quality on show at the Nehru Cup in 2009 is an indication that this is not a lost cause. However, the sport needs to learn from the positive qualities of the Nehru Cup. Full crowds, matches to care about, prime time content all come together as part of the equation that can make the sport work.

    International football is certainly gaining ground in some areas of India, even if the viewing figures don‘t really back that statement up. Premium Indian advertisers are beginning to spend on the UEFA Champions League, UEFA Europa League and the BPL. Wealthy Delhi and Mumbai kids all seem to have an English or Spanish football shirt in their wardrobe, and the FIFA world Cup in South Africa should be a superb event.

    The international football market is licking its lips at the prospect of an Indian audience buying more of those shirts. The research doesn‘t currently support the emotion. Premier league and UEFA Champions League figures are showing no signs of growth, but they are showing signs that people care more.

    The soccer World Cup can only help the process in 2010. I do believe ESPN-Star overpaid with their $48 million bid for three years of Premier League football from 2010-2012, but I remain very happy to watch them every weekend.

    One of the sporting stories of the year for 2009 came in a sport that I care very little about. Formula 1 tends to leave me cold, but I love an underdog. As a result Vijay Mallya‘s Force India perked even my interest with their achievements in 2009. To take a podium place and come so close to a first place was remarkable, particularly when you see the sort of funding that the big teams have. As we move towards an Indian Grand Prix and the new circuit on the edge of Delhi, then there is considerable potential for growth around Indian motorsport and its talented young drivers.

    Indian golf has some passionate supporters in the industry and 2010 promises more Asian tour events in the country as well as more Indian golfers succeeding on a world stage. Again, from a television industry perspective, we don‘t really see the numbers on a weekly basis but the passionate and committed golf viewer certainly wants more, and the current structure of Indian sports channels does not fulfil that need.

    Though sporting prowess on the field has a remarkable effect on the value of what we show, the real test for the Indian market is how quickly television sport is allowed to move away from being an advertising supported industry to a subscriber supported industry.

    The lack of accountability and the issues with collections in the cable industry has frustrated the growth of the Indian television sports business. DTH is a true sign of hope, with a viewer choosing and paying for his channel rather than a cable operator choosing for a viewer, and only occasionally paying. The closer that paying relationship between the end consumer and the sports channel, the more chance we have of justifying varied and stimulating content that people actually want to watch.

    Indian sports television has come a long way in the last 15 years since I sat watching Chinese football on Prime Sports but unable to watch the Premier league. Yet there is still huge amount of quality sport inside and outside India that is not seen on TV by an Indian audience. The World Athletics Championships, the Spanish football league, the Ultimate Fighting Championships, the European hockey league, the American NFL are all events that some people in India want to watch, but currently cannot do so. The rest of the world is now watching in HD, but India is watching in 4:3, not even in widescreen.

    Free the sports channels from the limitations of Trai (Telecom Regulatory Authority of India) pricing, and the doors will open to even better experiences. Control the piracy, encourage innovation. Allow variety of sporting experience, encourage quality of production. Filling each hour of live sport programming with advertising, squeezing back the screen every ball of a cricket match does not deliver the quality of viewing experience that an audience deserves.

    Let‘s hope that 2010 allows sports channels the legislative freedoms to offer premium products at premium prices and take Indian sports TV into the 21st century.
     

  • ‘Sports broadcast ad market to grow to Rs 7 billion this year’ : Rukin Kizilbash – Taj Television India GM

    ‘Sports broadcast ad market to grow to Rs 7 billion this year’ : Rukin Kizilbash – Taj Television India GM

    It has been a busy and somewhat testing time for Ten Sports. Last year Zee took a 50 per cent stake in its parent Taj Television while this year the channel has had to make do without any India cricket showcase. As a result, it has had to push other properties.

     

    Additionally, a plethora of cricket rights that it holds come up for bidding in the coming months. Indiantelevision.com’s Sibabrata Das and Ashwin Pinto caught up with Taj Television India GM Rukin Kizilbash to find out more.

     

    Excerpts:

    How has not having India cricket this year impacted Ten Sports?
    It has impacted us quite a bit. It is a fact of life that things are not as smooth without India cricket. For each India series you make in the region of Rs 700 million to Rs 1 billion. Last year, Ten Sports had one series. The year before, there were two.

     

    However our reach and GRPs have not been impacted. This is in part due to WWE (wrestling). Our reach is at 30 per cent.

     

    Next year should be better though as we will have India’s tour of Zimbabwe and Sri Lanka.

    But wouldn’t it be a crucial phase for Ten Sports as two prime properties – Pakistan and Sri Lanka boards – come up for bids next year?
    It will be a crucial 12 months for us as the rights for Pakistan, Sri Lanka and West Indies come up for renewal. But we expect to renew our contracts.

    Will the acquisition price for these rights shoot up with Sony back in the race and the others showing hunger to pocket more cricket properties?
    I don’t think that the acquisition price will shoot up drastically. India, after all, visits them just once in four years. So when you buy board rights, you basically buy one India tour. It is not like the ICC events where India always participates.
    Why is it that you recently bought the South Africa rights for just one year?
    We got the rights for South Africa and Zimbabwe for one year. We will hopefully get these rights for five years once the current period gets over. India visits South Africa in 2010.

    Is cricket saturated in terms of ad rates?
    No! We believe that the spot rate can keep going up. To give you a parallel, in the US a 30-second spot for the Super Bowl sells for $2.5 million. For us it sounds unbelievable but in the US clients like Budweiser and Microsoft are willing to spend $25 million on one match. They create campaigns just for that event. An India series costs $4 million to sponsor. So there is room to grow.

     

    We sold the India Pakistan series last year for Rs 350,000 for a 10-second spot. I believe that ESPN Star Sports sold the final of the T20 World Cup for Rs 750,000 per 10 seconds. The next India versus Pakistan series could see spots sold for Rs 500,000 per 10 seconds – or even more. Advertisers realise that India cricket is the only way to reach the entire country at one shot. Even the highest rated soap does not reach the entire country. Its primary audience is the Hindi belt.

    Which is why the sports broadcasting market is going to see ad revenue growth this year?
    We expect the sports broadcast ad market to be in the region of approximately Rs 7 billion this year, up from Rs 4.5 billion a year ago.

    Industry estimates Ten Sports’ ad revenue to be around Rs 600-700 million this year. Is this true?
    I can’t comment on our revenue figures.

    In terms of rates, how do India cricket series stack up
    against each other?
    India versus Pakistan would be number one, followed by the series against Australia. A series against South Africa would be third. Clients need India cricket to create a big bang. Also a lot of the ad rates depend on when a series is held. Is it coinciding with the summer season or Diwali?

    To what extent did T20 rejuvenate cricket?
    It turned the sport upside down. It is certainly worth a lot more from an advertisers perspective than a 50 over ODI. The ratings for the T20 World Cup were double what you got for the India Australia ODI series. There is a lot more viewer retention as it lasts for just three hours. The instant cricket that T20 offers fits in with today’s lifestyle.
    ‘IPL and ICL will not get in each other’s way. One initiative is from the governing body, while the other is from a private player trying to boost the game’s popularity and reach. They can co-exist‘

    Have ratings gone up for other sports?
    Not substantially. There has been some growth though for tennis, soccer. Moto GP has also shown a decent jump. We have gone from maybe 0.2 to 0.4.

    And what about ad rates?
    We are seeing a surge in football. When we telecast the World Cup in 2002, we got an ad revenue of $2.5 million. We believe ESPN Star Sports got around $8.5 million this World Cup.

     

    The ad revenue you get from a non-India series like Australia versus South Africa is probably about the same as what you make for a season of Uefa Champions League.

    How do you view the opportunities for broadcasters to grow other sports in India?
    The opportunities are there for other sports to grow. Soccer, hockey, tennis are doing quite well, which we are trying to develop. Having said that, Indian cricket drives the sports broadcasting space. The challenge is to take the other sports on par with India cricket.

     

    We have to figure out how to deliver more TRPs and revenues from these sports. India will evolve from being a one sports nation but it will take time – and a lot of marketing effort from sports broadcasters to push these properties.

    Can you offer an example of a non cricket sports event that has grown through nurturing?
    A good example of nurturing is the soccer World Cup. The response it got last year surpassed all expectations.

     

    When EPL first started airing in India not many people were familiar with it. It has developed over the years due to sustained coverage. We will be doing the same with our properties including motorsports.

    What marketing innovations are being done by Ten Sports to push these events?
    We are doing an On Tour innovation. This is a six-month on-air promotion and the sponsors are Tata Sky, Idea and McDonalds. We take four contest winners each month for a different event. We started off in September with WWE in Paris. In October we took them to Kuala Lumpur for the MotoGP. This month is the Uefa Champions League and next month is Sri Lanka Cricket.

     

    In January, we will be featuring South Africa cricket. In February, there will be horse racing in Dubai. And we are marketing them in different ways.

    Do you see Olympics becoming bigger in India this time?
    I would rather say that the Olympics as an event was bigger in the 1970s and 1980s compared to now. For next year I have heard that ESPN is looking to air it, besides DD. If that happens then the event will get a bigger marketing push that usual. Still the fact that Indian participation in the Olympics as well as performance is limited means that interest will accordingly be limited.

    What are the rights you have recently bagged?
    We have bought the soccer rights to the Dutch and French leagues. We believe that if we nurture them they can over the next three years reach the status of EPL.

     

    In terms of upcoming rights, the Australian Open tennis Grand Slam rights are currently being bid for. Wimbledon rights come up next year.

    There is a trend of sports broadcasters doing long-term deals with a few clients. Is Ten Sports examining this route?
    No! We prefer to do yearly deals as we know exactly what is on our calendar. Also if you do a long-term deal, you do not know what the ad rates will be the next year and the year after that. You could be under-selling.

     

    Another issue is that if I say lock in Pepsi for three years, then I exclude Coca-Cola and who knows? Maybe next year Coca Cola ups their marketing budget and launches three new products. I miss out on that action. With long-term deals you run the risk of ticking off companies by blocking them completely off the channel. These companies will then be more than happy to hop on to a rival channel.

    How do you see the ICL and IPL faring?
    ICL will rock. At the moment there is some uncertainty as it is a new format. But once it starts, it will catch on in a big way. You have established names, good production values, good stadium facilities. There will be Bollywood glamour. So it will be a fun experience for the family.

     

    While it is early for me to say anything about IPL, I don’t think that they will get in each other’s way. One initiative is from the governing body while the other is from a private player trying to boost the game’s popularity and reach. They can co-exist.

    After acquiring stake, why did Zee decide to sell ads through Ten Sports for its own sports channel?
    We already have a dedicated ad sales team in place. We are selling ICL for them. We are selling it on air while they are selling it on-ground. Sometimes we package some of Zee Sports’ properties along with our channel. At other times like for Indian soccer, it is done separately.

     

    It also depends on the client. If say someone like an LG is spending Rs 10 million, he may want to split it between the two channels. So we work out a package. We have products that Zee Sports does not have and vice versa. So it helps us sell better. It is a joint effort in terms of sales.

    Are you looking at organising a sports event at a
    grassroots level?
    Yes! We are working with Zee. We have identified three sports and we are deciding how to go about things. We might create an event from scratch or we might associate with an existing one and take it to another level. Zee is working with soccer. ESPN is working with hockey. We too are looking at a sport.

    In terms of other sports, do you see soccer or hockey
    becoming a number two sport?
    It is difficult to say which will come out on top. Hockey has picked up with our recent win and the whole Chak De spirit. Unfortunately, we are not playing in the Champions Trophy. Hockey has had its ups and downs. In terms of soccer, the Champions League is taking off. Both sports will depend on how India fares at them. But currently, soccer is bigger than hockey.

    How is Ten Sports gearing up for new media? And is marketing on the mobile going to go beyond just SMS?
    We are planning to do this next year. We are talking with Idea and Reliance in terms of how to take this forward. We are looking for a bigger platform.

    You did a film innovation last year where you aired
    sports films. Are you planning more of the same?
    Absolutely! We are planning to have the next batch soon. It is a question of getting sports movies. We are currently showing a series Simply the Best. Each episode looks at a great sports person like Sir Donald Bradman, Jesse Owens. Mohammed Ali, Sachin Tendulkar.

    Is a one-sport channel like a Golf channel economically
    viable with new distribution platforms like direct-to-home emerging?
    I think that a couple of years down the line it will be. When DTH reaches 5 million homes, you will see niche channels dedicated to topics like cooking, golf, travel and action adventure coming up.
  • Taj Television, TNMG in interactive progamming, distribution agreement

    Taj Television, TNMG in interactive progamming, distribution agreement

    MUMBAI: The New Media Group (TNMG) and Taj Television, which owns sports channel Ten Sports, have formed a partnership.

    TNMG will distribute and market Taj Television’s assets to users in Japan and Korea.

    TNMG president Randy McGraw says, “We have been really impressed with the content that Ten Sports is producing, the company’s management, and its direction.

    “This strategic tie-up goes a long way toward our mission of establishing the preeminent IPTV and sports community management portal for the growing number of people that are under-serviced by legacy broadcasting, DTH and CATV systems in the markets where they live. We are happy to be working with Taj Television.”

    Under the agreement between companies, TNMG will distribute Ten Sports to a community of 200,000 South East Asian and Subcontinent community members living and working in Japan and Korea. Taking advantage of the regions broadband and 3G mobile infrastructure, TNMG will work with Taj Television Limited initially on TV offerings, and will eventually will develop offerings for consumption on TV, PC, and mobile phones.

    TNMG says that it will give its viewers the World On-Demand, and we are happy to have this solution. South Asians all over Asia will now be able to watch cricket, football, hockey, tennis, and see their favorite players and home teams doing it.

    The two companies will eventually collaborate on new, interactive offerings for consumers of Ten Sports’ content.

    The companies began services in Japan and other East Asian markets in December, 2006.