ITV

Tag: Unni Krishnan

  • Despite spike in viewership, Malayalam news channels record dip of 60% in ad revenues

    Despite spike in viewership, Malayalam news channels record dip of 60% in ad revenues

    NEW DELHI: While Covid2019 has had an unprecedented impact over businesses across the country in the past few months, the media and entertainment consumption witnessed some interesting upward trends during the time period. As per weekly data shared by BARC-Nielsen during the course of the nationwide lockdown, TV viewership peaked by 43 per cent (highest value, at week 13 as compared to pre Covid2019 i.e. Week 2 to Week 4), during the period. Time spent on TV was up by 7 per cent in week 20, as compared to the pre-covid2019 period. News genre was one of the biggest gainers when it came to viewer interest and eyeballs, with total viewership up by 15 per cent in week 20. 

    Malayalam news channels also witnessed a similar trend, recording a 141 per cent hike in viewership, recorded in week 20. However, this growing viewership did not result in the sort of advertising revenue it would have garnered in pre-covid2019 days. 

    While the number of advertisers did not see much of a dip across Malayalam news channels; as shared by TAM AdEx India, the number of advertisers in pre-covid days (Jan-March’20) was 440 and dipped to 352 in covid times (April 20-June 20), the ad revenues went down by as much as 40-60 per cent due to lower inventory pricing, shares an industry insider. 

    Madison Media chief buying officer Vinay Hegde shares with Indiantelevision.com, “Typically with the pandemic and the lockdown becoming the focal point, viewership as in other markets shifted to news and the spike was exponential. A major shift from GECs to news was inevitable and visible and the channels did their best to hold on to their rates and monetise on the spike. This genre managed to rake in some ad revenues, yet inventory fill rate was lower than the normal average. April actually saw a dip in ad spends by almost 25 per cent Q4 of LY, but in May there was a massive spike of 120 per cent.” 

    When it comes to FCTs, Mplan CEO Parag Masteh shares that the numbers were more or less similar for the top channels, as compared to pre-covid2019 times, with some even recording positive growth. 

    TAM AdEx India data reveals that News18 Kerala and Manorama News witnessed positive ad volume growth of 28 per cent and eight per cent, respectively, the ad volumes of channel 24 remained almost similar to pre-covid2019 times. 

    Mathrubhumi News CEO Mohan Nair says, “While we witnessed a 25 per cent spike in viewership during the period, the ad revenues dipped. I may say that because we couldn’t record some of our outdoor programmes and the news coverage was also centred primarily on Covid2019, for nearly two months we had hardly any business. If I look at these three months, we must have recorded a business of around 30 per cent of the pre-covid days.”

    Kairali News’ Suresh Kumar quips, “The FCTs dropped drastically for us and so did the advertiser number. There were very few regular clients from the jewellery segment who were active on our channel and most of the ad space was brought by government ads and the hospitals. Our ad revenues used to touch Rs one crore per month before Covid2019 and for the past three months, the figure stands below 50 per cent. One of the reasons is that we had to bring down our inventory prices by 30 per cent in most cases.” 

    Asianet News Network VP sales and marketing Unni Krishnan shares, “Though we recorded 3x ratings, the advertiser sentiment was really low. If you look at the Kerala ad market, retail clients are amongst the top advertisers on news channels and they were not active at all in the initial days. Though they are trying to make a comeback, it is not with the same budgets as they used to spend earlier. In fact, most of our major clients were not active during the past few months and the only ads we got were from some new clients.” 

    He adds, “These were not big-time clients. To give some numbers, if on a normal day a client used to come with an investment of Rs five lakh to Rs 10 lakh, we were getting billings of up to Rs 50,000 to Rs one lakh only. So, if you look at the number of advertisers, we used to get the same revenue from 10-20 clients earlier, which we got from 40-50 clients now.

    While Kumar, Nair and their teams reworked their inventory prices and announced some discounts to keep up the advertiser sentiment, Krishnan avoided changing ad rates. 

    “While most of our competitors were announcing discounts and combo packages to keep the advertiser sentiment positive, we at Asianet avoided it. It definitely caused us a bit of a loss in the initial days, and we had a slow start in April, but fortunately for us, the ratings improved. We also did not increase our inventory prices when the viewership peaked,” Krishnan highlights. 

    Nair shares, “The good thing that happened during the pandemic is that categories which earlier refrained from advertising on news genre like sanitisers and washing-related products have started advertising on our channels. While I am hopeful that the upcoming monsoon and Onam will bring in some positive movement from advertisers, if you look at Kerala, Covid2019 cases are again rising. And we can’t be sure what the situation will be in the coming months.” 

    Krishnan elucidates, “Kerala was the first state to recover, but if you look at some other markets like Chennai or Mumbai, the lockdown is still in place and the numbers of patients are continuously rising. Even in Kerala, fresh cases are coming up, and while earlier the number was 20-30 cases a day, it has now peaked to 120-130. Our all yoy projections have already gone for a toss. While Onam and monsoon are a good season for us, we can’t be sure of the situation then. Yes, July, which usually is dull for the Kerala news market, has shown signs of improvement for us; going ahead, market sentiments largely will decide our fate.” 

    As the lockdown restrictions ease and the bright festive period approaches, starting August, the channels are expecting their fortunes to improve but they are still apprehensive of the growing cases. 
     

  • ‘One individual is not capable of running IPL’s complex business ecosystem’ : Brand Finance India managing director Unni Krishnan

    ‘One individual is not capable of running IPL’s complex business ecosystem’ : Brand Finance India managing director Unni Krishnan

     

    The Indian Premier League (IPL) is caught in the midst of a storm with dark clouds hovering over team ownership issues, sources of funding, corruption and match-fixing charges.

     

    Lalit Modi, the architect of the IPL, is being accused of holding hidden stakes in some of the franchises. Income-Tax sleuths have broadened their probe into the financial details of the IPL by conducting nationwide raids cut across Multi Screen Media (MSM), World Sport Group and the franchise owners.

     

    So how will these chain of events affect the brand value of the IPL pegged at $4.13 billion?

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, Brand Finance India managing director Unni Krishnan says the risks for brand value erosion are significant if the IPL does not quickly put in place proper management systems and processes.

     

    Excerpts:
     

     
    With controversy swirling around the IPL, is there a need now to downgrade the brand?

    It is too early to take a call on this. The probe has started and we will have to wait for the government to come out with a final report on the investigations before we can comment on whether the IPL brand is fractured.

     

    But in our February report, we had cautioned that the IPL branded ecosystem is rapidly approaching an inflexion point. We had predicted this to happen in the next 6-10 months. This has come sooner than that.

     

    Surely, there are definite weaknesses regarding brand value governance and transparency, management systems and processes. But have we got a revised value of the IPL brand? Not yet.
     
     

    Does this mean that there is no brand erosion at this stage?

    The risks for brand value erosion are significant if things are not managed swiftly and the stakeholder relationships start weakening. But the truth is that the IPL is a very valuable brand created in a very short period of time. The wealth that can be created by the brand is going to be substantially significant for many stakeholders. A conducive ecosystem has to be created to move the brand to the next level.

     
     
    But will it be safe to say that the IPL brand has got tainted?

    The fault is not with the IPL brand. Some people are commenting that the property be nationalised. That is not how you run a global commercial property like the IPL. Iconic brands such as the IPL are national assets and a source of wealth creation. The question is whether we have the capability and determination to put systems and processes in place to manage one of the best brands we have produced. If we fail to do so, and all the allegations also turn out to be true, the brand will take a big knock.

     
     
    Enough dirt is thrown on Lalit Modi, the architect of the IPL. Now it looks like the man who created and built the IPL property would be thrown out. Will that not damage the IPL brand?

    Let us not confuse the individual called Modi with the business and the brand. One individual is not capable of running such a complex business ecosystem like the IPL. The need is to fix the weaknesses.
     

     
    Are you suggesting a proper balance of power system?

    As the architect of IPL, Modi has done a great job. But for such a large-scale property, we need 10-12 key members. We are not sure if the IPL governing council acts as a rubber stamp. We need to go through these questions urgently if are to create a sustainable brand property.

     

    The IPL brand is a set of complex relationships with fans, franchises, sponsors, business houses and players. This can create huge value in future if properly managed – not by one individual but by a system.

      
    ‘The IPL is a global commercial property produced from India. The unfortunate part is that if we don‘t do a clean-up action, we would be destroying it not due to any competition but because of our own action‘

     
     
    A fundamental problem being raised is that the revenues do not match the sudden flood of investments that have gone into the IPL. Are you worried about a possible nexus between the IPL organisers, the politicians, the big corporates and the Bollywood celebrities?

    There is an entry price to every business. Substantial investments are required and the revenue potential is huge. If there are misconducts like match-fixing and betting, then obviously the guy watching the game will turn off. So will sponsors. Years ago, when the first match-fixing charges were made, there was a brief period of lull. But that does not mean that cricket has died in India. The key question is governance and transparency.

     
     
    Is there inherent strength at the IPL franchise level?

    There has to be transparency at the ownership level too. Media reports are suggesting murkier deals. We don‘t know at this stage what is the truth. But sporting properties have to be run like proper businesses. Look at how the English Premiere League (EPL) has hurt itself. The club owners chased iconic players and made unrealistic purchases through a huge load of debt. Sports businesses can be lucrative but proper regulations have to be in place.
     

     Is the IPL an overheated economy?

    Is there value to be created? Yes. There are strong revenue and marketing opportunities.

     

    Most of the clubs, however, have not yet put the systems and processes in place to manage these opportunities. Take the licensing and merchandising (L&M) business which is pegged globally at $108 billion. This is not a Mickey Mouse number. Manchester United has 25-30 per cent of its revenues coming from L&M. But in India, this revenue stream is not visible in many of the clubs. We have to build the requisite bandwidth to monetise these opportunities.

     
    Is this a struggle between the old and the new India?

    As a country, we need to move away from intrigues and corrupt systems to a phase where we develop international properties. We can‘t run these properties with the same baggage as we move from a developing to a developed country. The tussle between the old and the new India will lead to pain and tribulations. But the fact is that we have created a positive property in the IPL which can provide sustainability in the long run for various stakeholders.

     

    People are seeing a new India through the IPL. This goes much more than cricketing business; it is about brand India. On a much broader level, IPL has demonstrated the coming of age of India‘s commercial prowess on a global stage.

     
    Does this remain as a dream at this stage?

    The developed world is looking at the IPL as a global property produced from India. The IPL has changed the very perception of India in the global stage. The unfortunate part is that if we don‘t do a clean-up action, we would be destroying IPL not due to any competition but because of our own action. The moment of truth has arrived for us. We have to face it with independence and courage. Can we live up to the expectations that we have created? It will be a sad essay if we don‘t deliver.

     
    How do we move the IPL up from one-third its value ($4.13 billion) to a level that it can sit along with the EPL ($12 billion)?

     

    That is only an indicative figure we have given to compare a property developed in one part of the world with another that has achieved maturity status. The IPL has hardly scratched the surface. It has a long way to go and a considerable value to realise before it lives up to its full revenue and brand potential.

     
    Brand Finance has more than doubled the brand value of the IPL from its first evaluation. What are the reasons for this?

    We are seeing a remarkable increase in revenues from broadcasting (as deal was renegotiated) and sponsorship. We have also considered the IPL‘s capability to draw in fans and viewership.

     
    Why have you upgraded Chennai Super Kings (CSK) to the top as the most valued IPL franchise (Rs 2.24 billion, up 35.5%)?

    There are 3-4 breakaway clubs. We have looked at teams who have managed cricket as a product and blended this with marketing and commercial excellence. The two performances have to be done simultaneously.

     

    CSK is beginning to put the various pieces together, synergising between their enterprise (India Cements) and their IPL business. We are also seeing Mumbai Indians show a remarkable revival this year, both in performance on the field and in their commercial activities.

     
     Why has Kolkata Knight Riders (KKR) slipped in your latest brand value estimate (Rs 2.13 billion, up 20.6%)?

    KKR topped in our first round as it has an iconic brand like Shah Rukh Khan. This gives it an undue advantage. But they are not able to exploit this to the maximum. Their performance as a cricket team has also been bad. If this trend continues over the next few seasons, then it will seriously erode the brand value of KKR.
  • ‘We are seeing the beginnings of a global iconic brand in the IPL’ : Unni Krishnan – Brand Finance India Managing Director

    ‘We are seeing the beginnings of a global iconic brand in the IPL’ : Unni Krishnan – Brand Finance India Managing Director

    The Indian Premier League (IPL) is set to revolutionise the cricketing economy, draw in a new bunch of younger audiences with the T20 format, reinforce India’s superpower status, create club cultures, and build market values that are in line with the English Premier League (EPL).

     

    Just two years into birth, the IPL is enjoying a brand value of $311.44 million (IPL brand value of $240.72 million and IPL brand value to BCCI of $71.22 million) and an eye-popping enterprise value of $2.01 billion, according to UK-based brand valuation consultancy Brand Finance.

     

    There is no stopping Shah Rukh Khan. Not even a dismal performance at the IPL. Kolkata Knight Riders, the team that the Bollywood star owns, leads the pack of eight with a valuation of $42.1 million. Mukesh Ambani’s Mumbai Indians walks into the crease at the second spot with a brand valuation of $41.6 million, followed by Rajasthan Royals with $39.5 million. The others in the pecking order are Chennai Super Kings ($39.4 million), Delhi Daredevils ($39.2 million), Bangalore Royal Challengers ($37.4 million), Kings XI Punjab ($36.3 million) and Deccan Chargers ($34.8 million).

     

    The IPL and the team franchises will have to prepare for a long slog if they are to reach anywhere near the value of the EPL and its member clubs. They will have to induct professional management teams, introduce rigorous corporate structures, and chalk out strong commercial streams including merchandising and licensing.

    In an interview with Indiantelevision.com’s Sibabrata Das, Brand Finance India managing director Unni Krishnan talks about the wonderful start the IPL has made, the potential it has in creating a global fan base and the things that need to be done to stretch the value of the brand and its market capitalisation.

     

    Excerpts:

    Sceptics have questioned the rationale for valuing Kolkata Knight Riders at $42.1 million. Does the performance of the team get a low weightage in comparison to the high-profile value of Shah Rukh Khan as the team owner?
    The valuation process was on 2-3 months before the second edition of the IPL and, in many ways, you can’t predict the future. Having said that, enough data is available to prove that KKR has customer loyalty, a high degree of fan following, and amount of viewing for the matches that they play. Shah Rukh is able to generate an identity for the team. KKR is also able to tie in high-profile sponsors and sources of licensing and merchandising (L&M). Brand value is nothing but an ability to create fan base and convert that into cash.

    Even in the inaugural edition of the IPL, KKR didn’t fare too well. And in the second season, its performance has actually skid. So is there scope for a re-rating of the team franchise’s brand value?
    Unlike the EPL clubs which have created a track record, the IPL is new. When we went into the exercise, the performances were just a year old. Which is why we can’t yet form a strong view of a clear winner. The valuation of the eight team franchises falls within a tight range of $42.1 million and $34.8 million.

    KKR is one of the clubs which has made money from the first year itself. But valuations are not chipped in stone. When we carry out our second exercise after a few months, we will weigh in certain factors like KKR’s performance, captaincy and blogger issues that could have had an impact on the commercial revenue streams and the value of the brand.
    Brand Finance has valued the IPL brand at $311.44 million while fixing the enterprise value at $2.01 billion. Is there a ratio between the value of the brand and its market capitalisation?
    Since the IPL is at its infant stage, the ratio between the brand and the market value is low and not clear yet. We can arrive at a benchmark after 3-4 years as the value of the brand grows. In a typical matured stage, the range varies between the 40-50 per cent ratio. The brand-to-the market value ratio in case of the EPL, for instance, should fall within this region. The brand contributes to the market value in a significant way.

    How come a recent study by UK-based Intangible Business and MTI Consulting has almost halved the team valuations that you have arrived at?
    Valuations are based on opinions and the quality and strength of assumptions. We have conducted a rigorous exercise.

    Has IPL’s shift in home to South Africa for the second season created a disruption in the fan build-up process and hence a dip in valuation?
    The IPL property is not under-rated because it has gone to South Africa. We are, in fact, seeing the beginnings of a global iconic brand. In the cricket-following countries like England, South Africa and Australia, it is creating a new interest among the youth, who had moved away to other sports. A whole new set of fans and audiences are being created,breaching ethnicity and race. Led by a blend of Indian and foreign players, it will take the next 4-5 years to build a global fan base for the teams, cutting across the identification of countries. We are going to see a global brand coming out of India much like the Tatas. That is the potential of the property that IPL is.

     

    But the IPL will not have a clear run in this T20 form of cricket. There are other countries like South Africa and England who are going to have their own form of IPL. Serious competition is going to come. But having said that, the foundations and start of the IPL have been a huge success. The value is just not in marketing but also with a lot of economic substance embedded into it.
    ‘EPL clubs have a heritage of 100 years and have moved towards corporatisation. Some of the values of these clubs are in the wide range of $100-600 million. The IPL does not have that kind of legacy or magnitude. But it has a lot of headspace for value creation‘

    Do the IPL teams have the potential of becoming as big as the EPL clubs?
    The EPL clubs have a heritage of 100 years and have moved towards corporatisation and rigorous structures. Some of the values of these clubs are in the wide range of $100-600 million. The IPL does not have that kind of legacy or magnitude built into it yet. But it has a lot of headspace for value creation, though much depends on how an organised management process and system is being set up. We may have the teams being listed and huge value being created going forward.

    When do you see listing of these teams happening?
    There is a lot of money and Bollywood thrown into the system called IPL. Listings can happen in the next 3-5 years after revenue streams, cost drivers and the need for professional management teams are clearly understood. Sustainable value needs to be built. Some teams may even opt for private equity.

    How IPL is going to impact the business of sports marketing in India?
    It will be a game changing moment for sports marketing and merchandising in India. The global L&M market is $108 billion and is a significant industry on its own. Manchester United and Real Madrid have a vey strong licensing and merchandising model. India is taking its first baby steps. IPL is the medium under which these processes will come into the country. Bangalore Royal Challengers has already started focusing on sports marketing. L&M has a strong commercial role that needs to be developed, going forward. The IPL teams have appointed top legal firms to protect their IPRs. The leakages inside the system have to be plugged or you will have a case of lost opportunities.

    What are the steps IPL needs to take to scale up?
    More teams and seasons need to be introduced. But IPL can’t consider the T20 format as its personal fiefdom because competition is already starting. We are yet to see the teams take to the professional management skills that the EPL clubs have imbibed. But the teams are on the right track.

    Will Test cricket be severely impacted because of the T20 format?
    The Test format will be in crisis unless there is a reinvention in its game architecture. It is especially dying out among the youth in the developed countries. The T20 game has given a new lease of life to cricket. Whichever format is innovative will succeed. But T20 certainly has an edge.