Tag: Viacom18

SVod outpacing pay TV in W. Europe’s consumption trends: Report

MUMBAI: Subscription video on-demand (SVoD) content is increasing more and more as compared to Pay TV.

Several discussions have taken place in India with the growing number of digital platforms. Broadcasters such as Star India, Viacom18, Zee Media and Sony Television, etc have entered this space with their own OTT/VOD platforms. Debates not just confined to the emergence of VOD platforms but also the entry of various global players have been raging since.

The fact that digitisation is at a nascent phase in India only paved the way for the players to experiment various models. This also raised a few eyebrows on the existence of cable and satellite television.

While most follow an advertising-led model or a ‘freemium model’, the countable ones have taken the challenge of following a subscription-based model. As print has survived after the entry of broadcast, analog and digital cable network will also co-exist with the emergence of various digital platforms. With the robust penetration of internet in the US, Pay TV has remained powerful.

But is it the same everywhere else? Certainly not. The scenario is completely different in Western Europe. SVoD subscription has been outstripping Pay TV since 2012. The subscription net addition of Pay TV in 2016 is 2 million which is estimated to see a downfall by 2021 to 1 million.

On the other hand, SVoD in 2016 is 9 million only and evaluated to come down to 3 million by 2021. Both the services are currently at its peak but are substantially going to see some disruption. This clearly shows that currently the viewers are ready to pay for good quality content.

These were some of the findings presented in a report at IBC by Ampere Analysis, a London based analyst firm, at Amsterdam yesterday.

According to the Ampere report, SVoD is growing as a significant segment not just in the USA but also in other countries such as Poland, France, the Netherlands, Spain, Italy, Germany, the UK, Sweden and Denmark. The average SVoD-only homes in the second quarter of 2015 has been 5 per cent while, in the current scenario, it has grown by 2 per cent for the first quarter.

US specifically has seen a growth from 9 per cent to 13 per cent whereas the UK has seen an increase of 2 per cent from 8 per cent to 10 per cent in just a year.
So, what exactly do the SVoD homes constitute of? The three most relevant observations about who is consuming such massive content on digital platforms are — a big percentage comprise millennials, and the remainder people are more likely to take premium TV channels and some pertcentage have most likely changed their Pay TV provider.

In all, 46 per cent are less likely to pay for linear TV, while 40 per cent of homes have kids. 30 per cent of the homes have shown an inclination to binge watching. Only 14 per cent of people have opted for a Pay TV service, according to Ampere.

Business-wise, the concept of platform and channel is evolving though the producer and distributor remain unhampered. Earlier, content was distributed on platforms like Sky, Moviestar and Canalsat, etc which is now replaced by Facebook, Twitter, Snapchat, YouTube, etc. On the other hand, the channel from which content was ideally consumed has converted from Discovery, Fox, HBO, etc to digital platforms like Netflix, SeeSo, CuriosityStream, etc.

Pay TV and new media products are segmenting, the report states.

People with lower income are on-demand led whereas people with higher income are linear-led. Young millennials and teenagers can be appealed via services such as Whistle Sports, Soccer, Snapchat, Facebook,etc. Higher income traditional broadcast get pushed through Sky Q to protect high-end broadcast viewers. Direct To Consumers (DTC) cost to get a channel on air are considerably lower. So with a satellite you are going to take your yearly transponder, but with an OTT service you do not have that significant upfront cost. But, what you do have is a scaling cost, CDN delivery, that grows with your customer base.

Ampere accepts that the latter factor makes OTT uneconomic for reaching very large audiences, estimating that for a single channel or service offering video in any definition from SD to UHD, a satellite feed works out cheaper beyond 10m viewers’ even if they watch on average just one minute of content per day. For a daily viewer base below 20,000, OTT always works out cheaper, even if all viewers watched five hours of content a day and all content was transmitted inUHD, Ampere found.

With changing economics, channel groups are increasingly looking to Direct To Consumers (DTC) SVOD service. Viewers/advertising spends have shifted to online, operators are pushing back on channel carriage fee, content owners’ margins have squeezed and the DTC, SVoD launch have led to recoup margin. The millennials are already approaching two SVOD services per home. In the US, millennials have crossed the more than 2 number than the average. They are approaching to the number in Germany, Denmark, Poland and UK. Out of the 1002 sample survey, 255 are Netflix customers in UK which only means that the country is most likely to have more Netflix customers.

It is not all about broadband penetration, because size is also important. And actually if we look at the size of the addressable market, emerging markets like Mexico, Brazil, Russia, China, Taiwan, Thailand, etc all have started to become interesting [DTC] markets when we talk about the total addressable size.

Ampere’s research found that in the UK a Netflix customer is 1.5 times more likely than average to also take Sky’s Now TV OTT service; 1.8 times more likely to also take Amazon; 2.5 times more likely also to take Spotify’s streaming music services; and 1.5 times more likely to use the catch-up TV apps of the major broadcasters.

To date, Netflix’s growth strategy has relied on geographic expansion. But, its set to run out of road by 2017. Central, South and Western Europe saw 6 customer additions on an average in 2015 which has reduced to 4 or 5 in 2017 further reducing in 2021. But in Asia Pacific region, the customer addition has gone up from 1 to 5 and is estimated to be 3. Even after this, the fact that Netflix has invested a huge amount of money on content cannot be ignored. Netflix is spending like a broadcast or premium channel group. It spends 60 per cent revenue on program followed by premium platforms contributing 40-70 per cent revenue. Pay multichannels are putting 30-40 per cent revenue on programs.

Pay TV is still growing but OTT is growing faster – much faster. And that fact sums up both the threat and the opportunity that OTT video presents to platform operators. The survival of service providers depends on their ability to launch new services ahead of the competition.

September 9, 2016
‘Motu Patlu- King of Kings’ is Viacom18’s calculated risk

MUMBAI: At a time when major studios are either washing their hands off the Hindi film market or threatening to do so, jilted by the low box-office collections, Viacom18 has announced its maiden animation theatrical, ‘Motu Patlu King of Kings’.

Produced by the popular studio Maya, the film is slated to release on 14 October 2016, in Hindi and Tamil. This isn’t the first movie that highly rated toon characters Motu and Patlu have to their name. Nickelodeon had aired 10 ‘made for TV’ films, which did extremely well in television viewership.

Not belittling the craze the young ones in India have for the toons, the obvious question still stands ‘Why would Viacom18 bet so high on the already struggling animation feature film market in India?’ Not if the core objective isn’t about gain or loss at the box office but to augmenting an already popular franchise to become a premium brand for the network.

“Motu Patlu is already a very successful Intellectual Property (IP). Media business is fundamentally about widening the base of existing IPs. Cult franchises have been built on this principle across the globe. When you have characters like Motu and Patlu under your own home network, it is only right to invest in them by treating them to a film screen. Even if the film fails, we would have had marketed these characters well and grown brand Motu Patlu. Therefore, even on a bad day when collections aren’t that great, this film is still a good business decision,” Viacom18 Motion Pictures COO Ajit Andhare shed some light on the strategy.

Referring to the studios shutting down, he frankly stated, “I think when you bank on a film too much, you run the risk of ending up that way. The key approach is to have a diversified portfolio. One film might not work but it is unlikely that a well-thought-of portfolio will crash.”

“Your chances of succeeding as an aggregate are far greater due to diversification,” he said.

Viacom18 isn’t completely giving up on the theatre footfalls. From releasing the movie to leveraging its strength to market it, the media behemoth isn’t leaving any stone unturned.

“We are releasing the film in a calibrated fashion: The film’s launch date has been carefully decided upon so that it won’t be completely walked over by the Rs 100-crore magnum opuses. We locked in a holiday period that roots out potential competition”.

Viacom 18 group CEO Sudhanshu Vats further laid down the marketing plans for the run-up to the release in the next six weeks.

“We will strongly use the combined strength of our network to reach far and wide for the promotion of the film. Besides, we plan to use all the right media vehicles that fits our objective of reaching the right audience. Cross network promotion on relevant channels like movie and entertainment will also be part of the marketing initiatives. We will be heavily present on print and out-of-home spaces,” he said. The network also plans to use its FTA channels to spread the word in the tier II and tier II markets.

“We will add engaging brand alliances as part of the marketing mix with experiential being a key focus to popularise the characters,” he shared. The pre-festive season ties up with Nickelodeon’s already planned out marketing blitz for the year.

From a distribution standpoint, the film will be released in approximately 700 screens across the country. While it is significant number in the animated feature film category, to put some context, Disney’s The Jungle Book was released in India in around 1,640 screens.

Explaining why a smaller screen strength won’t deter the movie’s overall visibility, Andhare added, “Screen numbers don’t necessarily make a film big or small. Unlike a ‘star geared’ film, when it comes to a movie like this, what counts more is the show time. What will be a convenient time for the kids to go and watch, will the parents be able to accompany them? — become the deciding questions. So when we say 700 screens, we mean a wide release with proper show timings that can tackle such a specific audience.”

Given the track history of home-grown animated feature films on the Indian box office, Andhare was quizzed how he plans to recover the cost of production, when animated films are expensive to produce.

“I wouldn’t have agreed to do this film if I weren’t confident that we will be profitable. But, the onus is not just on theatre footfalls. It will be through a combination of all the monetization avenues available to us, whether it’s selling satellite rights, digital rights, or merchandising and brand integration deals.” Also, animated content has longer shelf life and are a lucrative property for syndication to other markets as well.

Speaking of brand integration, Viacom18 kids entertainment, business head Nine Elavia Jaipuria assured that the network is in talks with several brands to partner for the film’s promotion. Marketing alliances with more than 20 brands across categories such as Confectionery, Toys, FMCG, Milk supplement products, et al, are being tapped.

“The movie is unadulterated, meaning, there is no in-movie tie-up with a brand,” she said.

Adding her insight on how this film adds value to brand Motu Patlu, Jaipuria said, “From Tv-dom to stardom would draw us a premium on the IP”.

Jaipura also stressed on the ancillary revenue that the IP generates from the various merchandising deals it lends itself to, be it apparels, toys, stationery, back-to-school products, etc, which is further strengthened by its presence on various e-commerce platforms.

From the content standpoint, Motu Patlu King of Kings is a story about a runaway circus lion, a king trying to protect his kingdom, a greedy poacher and Motu Patlu caught up in the final battle to save the life of the jungle. Motu Patlu King of Kings, releasing on October 14, is sure to capture the imagination of the children and adults.

Maya Digital Studios chairman Ketan Mehta said, “This is a film that will be driven by children, but one that will be equally enjoyed by adults.”

Some of the leading names were roped in for the movie. The film is directed by Suhas Kadav and the celebrated poet Gulzar has penned the lyrics of the title track.

September 9, 2016
‘Motu Patlu- King of Kings’ is Viacom18’s calculated risk

MUMBAI: At a time when major studios are either washing their hands off the Hindi film market or threatening to do so, jilted by the low box-office collections, Viacom18 has announced its maiden animation theatrical, ‘Motu Patlu King of Kings’.

Produced by the popular studio Maya, the film is slated to release on 14 October 2016, in Hindi and Tamil. This isn’t the first movie that highly rated toon characters Motu and Patlu have to their name. Nickelodeon had aired 10 ‘made for TV’ films, which did extremely well in television viewership.

Not belittling the craze the young ones in India have for the toons, the obvious question still stands ‘Why would Viacom18 bet so high on the already struggling animation feature film market in India?’ Not if the core objective isn’t about gain or loss at the box office but to augmenting an already popular franchise to become a premium brand for the network.

“Motu Patlu is already a very successful Intellectual Property (IP). Media business is fundamentally about widening the base of existing IPs. Cult franchises have been built on this principle across the globe. When you have characters like Motu and Patlu under your own home network, it is only right to invest in them by treating them to a film screen. Even if the film fails, we would have had marketed these characters well and grown brand Motu Patlu. Therefore, even on a bad day when collections aren’t that great, this film is still a good business decision,” Viacom18 Motion Pictures COO Ajit Andhare shed some light on the strategy.

Referring to the studios shutting down, he frankly stated, “I think when you bank on a film too much, you run the risk of ending up that way. The key approach is to have a diversified portfolio. One film might not work but it is unlikely that a well-thought-of portfolio will crash.”

“Your chances of succeeding as an aggregate are far greater due to diversification,” he said.

Viacom18 isn’t completely giving up on the theatre footfalls. From releasing the movie to leveraging its strength to market it, the media behemoth isn’t leaving any stone unturned.

“We are releasing the film in a calibrated fashion: The film’s launch date has been carefully decided upon so that it won’t be completely walked over by the Rs 100-crore magnum opuses. We locked in a holiday period that roots out potential competition”.

Viacom 18 group CEO Sudhanshu Vats further laid down the marketing plans for the run-up to the release in the next six weeks.

“We will strongly use the combined strength of our network to reach far and wide for the promotion of the film. Besides, we plan to use all the right media vehicles that fits our objective of reaching the right audience. Cross network promotion on relevant channels like movie and entertainment will also be part of the marketing initiatives. We will be heavily present on print and out-of-home spaces,” he said. The network also plans to use its FTA channels to spread the word in the tier II and tier II markets.

“We will add engaging brand alliances as part of the marketing mix with experiential being a key focus to popularise the characters,” he shared. The pre-festive season ties up with Nickelodeon’s already planned out marketing blitz for the year.

From a distribution standpoint, the film will be released in approximately 700 screens across the country. While it is significant number in the animated feature film category, to put some context, Disney’s The Jungle Book was released in India in around 1,640 screens.

Explaining why a smaller screen strength won’t deter the movie’s overall visibility, Andhare added, “Screen numbers don’t necessarily make a film big or small. Unlike a ‘star geared’ film, when it comes to a movie like this, what counts more is the show time. What will be a convenient time for the kids to go and watch, will the parents be able to accompany them? — become the deciding questions. So when we say 700 screens, we mean a wide release with proper show timings that can tackle such a specific audience.”

Given the track history of home-grown animated feature films on the Indian box office, Andhare was quizzed how he plans to recover the cost of production, when animated films are expensive to produce.

“I wouldn’t have agreed to do this film if I weren’t confident that we will be profitable. But, the onus is not just on theatre footfalls. It will be through a combination of all the monetization avenues available to us, whether it’s selling satellite rights, digital rights, or merchandising and brand integration deals.” Also, animated content has longer shelf life and are a lucrative property for syndication to other markets as well.

Speaking of brand integration, Viacom18 kids entertainment, business head Nine Elavia Jaipuria assured that the network is in talks with several brands to partner for the film’s promotion. Marketing alliances with more than 20 brands across categories such as Confectionery, Toys, FMCG, Milk supplement products, et al, are being tapped.

“The movie is unadulterated, meaning, there is no in-movie tie-up with a brand,” she said.

Adding her insight on how this film adds value to brand Motu Patlu, Jaipuria said, “From Tv-dom to stardom would draw us a premium on the IP”.

Jaipura also stressed on the ancillary revenue that the IP generates from the various merchandising deals it lends itself to, be it apparels, toys, stationery, back-to-school products, etc, which is further strengthened by its presence on various e-commerce platforms.

From the content standpoint, Motu Patlu King of Kings is a story about a runaway circus lion, a king trying to protect his kingdom, a greedy poacher and Motu Patlu caught up in the final battle to save the life of the jungle. Motu Patlu King of Kings, releasing on October 14, is sure to capture the imagination of the children and adults.

Maya Digital Studios chairman Ketan Mehta said, “This is a film that will be driven by children, but one that will be equally enjoyed by adults.”

Some of the leading names were roped in for the movie. The film is directed by Suhas Kadav and the celebrated poet Gulzar has penned the lyrics of the title track.

September 9, 2016
‘MTV Beats’ to hit the Hindi music genre

MUMBAI: Viacom18 is all set to strengthen its youth and music portfolio with a 24X7 music brand ‘MTV Beats. MTV, a brand that defines pop culture, is also the brand that changed the way music was consumed. From introducing music television to India that defined an entire generation as the MTV Generation, to giving the country unforgettable shows such as MTV Unplugged, Coke Studio@MTV, Dewarists and MTV Spoken Word; MTV has always been the ultimate word on what young India likes to tune in to. With MTV Beats going on air soon, Viacom18 will now be offering its audience a one-stop destination for all their music needs.

Elaborating on the portfolio redesign, Viacom18 group CEO Sudhanshu Vats said, “MTV initiated India into the experience of pop culture, making it a socially and commercially successful phenomenon. Today the brand is synonymous with being reflective of the country’s youth – their preferences, beliefs, opinions, desires et al. This presents us with the unique opportunity to redesign our Youth and Music portfolio to take brand MTV into sharply segmented content buckets within the genre. We will now be offering 3 differentiated experiences from brand MTV – while the flagship channel will be focused on youth and branded content and MTV Indies will continue to cater to the indie subculture, now, on the digital platform; MTV Beats, our first 24X7 Hindi music channel, will replace MTV Indies on air, with an eye to take the MTV brand to a more mass audience.”

Giving a deeper insight this new music channel, Viacom18 youth and English entertainment business head Ferzad Palia said, “India loves its music, especially Bollywood music. With MTV BEATS, we aim to give our audience a 24×7 music companion who fulfils all their music needs through the day. This is a channel aimed at 15 – 30 year olds across urban and rural India, people who love music and often imagine their day having a sound track of sorts. To give our audience’s life a unique beat, we’re working on defining the week into mood based themes and curating our playlists accordingly, thereby making music viewing a more relatable experience.”

MTV Beats will predominantly focus on Bollywood music and will soon be available on air.

September 7, 2016
‘MTV Beats’ to hit the Hindi music genre

MUMBAI: Viacom18 is all set to strengthen its youth and music portfolio with a 24X7 music brand ‘MTV Beats. MTV, a brand that defines pop culture, is also the brand that changed the way music was consumed. From introducing music television to India that defined an entire generation as the MTV Generation, to giving the country unforgettable shows such as MTV Unplugged, Coke Studio@MTV, Dewarists and MTV Spoken Word; MTV has always been the ultimate word on what young India likes to tune in to. With MTV Beats going on air soon, Viacom18 will now be offering its audience a one-stop destination for all their music needs.

Elaborating on the portfolio redesign, Viacom18 group CEO Sudhanshu Vats said, “MTV initiated India into the experience of pop culture, making it a socially and commercially successful phenomenon. Today the brand is synonymous with being reflective of the country’s youth – their preferences, beliefs, opinions, desires et al. This presents us with the unique opportunity to redesign our Youth and Music portfolio to take brand MTV into sharply segmented content buckets within the genre. We will now be offering 3 differentiated experiences from brand MTV – while the flagship channel will be focused on youth and branded content and MTV Indies will continue to cater to the indie subculture, now, on the digital platform; MTV Beats, our first 24X7 Hindi music channel, will replace MTV Indies on air, with an eye to take the MTV brand to a more mass audience.”

Giving a deeper insight this new music channel, Viacom18 youth and English entertainment business head Ferzad Palia said, “India loves its music, especially Bollywood music. With MTV BEATS, we aim to give our audience a 24×7 music companion who fulfils all their music needs through the day. This is a channel aimed at 15 – 30 year olds across urban and rural India, people who love music and often imagine their day having a sound track of sorts. To give our audience’s life a unique beat, we’re working on defining the week into mood based themes and curating our playlists accordingly, thereby making music viewing a more relatable experience.”

MTV Beats will predominantly focus on Bollywood music and will soon be available on air.

September 7, 2016
BE Viacom18 gets John Abraham to promote Arunachal tourism

MUMBAI: Viacom18 CEO Sudhanshu Vats knows a good business opportunity when he sees one. From films, televisions, merchandising, events, start-ups to brand building, Viacom18 has expanded itself to several businesses.

Armed with these many touch-point media and brand solutions arms that Viacom18 boasts of, Vats now plans to fill a demand-supply gap in the country’s public sector when it comes to media management.

First step to this goal is BE Viacom18 becoming the media partner for Arunachal Pradesh’s Department of Tourism through its first PPP (public-private partnership) model. And, what’s more, popular Hindi film star John Abraham has been roped in to be the brand ambassador for the project.

BE Viacom is the brand solutions subsidiary of INS, which already takes credit for introducing Chinese technology brand Vivo into the Indian market.

“Arunachal Pradesh is a traveller’s paradise and a land of untold tales. In John we have a celebrity who shares our enthusiasm of weaving the stories of the mystical land into a single narrative of ‘Must See, Must Experience’ Arunachal Pradesh tourism. After all, a journey is best when it is entertaining,” Vats said at a press conference here on Tuesday.

Excited about representing Arunachal Pradesh tourism, Abraham said, “I am honored to have been chosen to promote the tourism of Arunachal Pradesh. I have always been fascinated with North East India: each state has its unique beauty, history and culture. It’s a state rich with culture, mysticism, great people and stunning views. When I’m there, all I need is some music, my boots to walk around and a mind free from all worries to be able to embrace the mesmerizing beauty of Arunachal Pradesh.”

According to Arunachal Pradesh Tourism Secretary Joram Beds, since the focus this year was boosting tourism sector, they needed like-minded partners.

“We found such a partner in Viacom18 who have helped us get John Abraham, a superstar, an adventurer and a great human being on board. John has played a pivotal role in promoting North East India, primarily by putting NEUFC (Indian football league where Abraham owns the football team comprising players from N-E) on the map of sports. We believe our association with him will strengthen our purpose of putting out our state as a prominent tourist destination,” the government official added.

One of the unexplored lands of the country, Arunachal Pradesh can be best described as India’s mystical land. The largest state of the North-East region, or Seven Sisters as the states are known as, Arunachal with the least population density claims to be the perfect detox from a bustling city life.

September 7, 2016
BE Viacom18 gets John Abraham to promote Arunachal tourism

MUMBAI: Viacom18 CEO Sudhanshu Vats knows a good business opportunity when he sees one. From films, televisions, merchandising, events, start-ups to brand building, Viacom18 has expanded itself to several businesses.

Armed with these many touch-point media and brand solutions arms that Viacom18 boasts of, Vats now plans to fill a demand-supply gap in the country’s public sector when it comes to media management.

First step to this goal is BE Viacom18 becoming the media partner for Arunachal Pradesh’s Department of Tourism through its first PPP (public-private partnership) model. And, what’s more, popular Hindi film star John Abraham has been roped in to be the brand ambassador for the project.

BE Viacom is the brand solutions subsidiary of INS, which already takes credit for introducing Chinese technology brand Vivo into the Indian market.

“Arunachal Pradesh is a traveller’s paradise and a land of untold tales. In John we have a celebrity who shares our enthusiasm of weaving the stories of the mystical land into a single narrative of ‘Must See, Must Experience’ Arunachal Pradesh tourism. After all, a journey is best when it is entertaining,” Vats said at a press conference here on Tuesday.

Excited about representing Arunachal Pradesh tourism, Abraham said, “I am honored to have been chosen to promote the tourism of Arunachal Pradesh. I have always been fascinated with North East India: each state has its unique beauty, history and culture. It’s a state rich with culture, mysticism, great people and stunning views. When I’m there, all I need is some music, my boots to walk around and a mind free from all worries to be able to embrace the mesmerizing beauty of Arunachal Pradesh.”

According to Arunachal Pradesh Tourism Secretary Joram Beds, since the focus this year was boosting tourism sector, they needed like-minded partners.

“We found such a partner in Viacom18 who have helped us get John Abraham, a superstar, an adventurer and a great human being on board. John has played a pivotal role in promoting North East India, primarily by putting NEUFC (Indian football league where Abraham owns the football team comprising players from N-E) on the map of sports. We believe our association with him will strengthen our purpose of putting out our state as a prominent tourist destination,” the government official added.

One of the unexplored lands of the country, Arunachal Pradesh can be best described as India’s mystical land. The largest state of the North-East region, or Seven Sisters as the states are known as, Arunachal with the least population density claims to be the perfect detox from a bustling city life.

September 7, 2016
Viacom18 completes merger of Prism TV

Mumbai: Viacom18 has completed merger of Prism TV Private Limited, thereby integrating five regional channels – Colors Kannada, Colors Marathi, Colors Bangla, Colors Odiya and Colors Gujarati within its fold.

Commenting on the merger, Viacom18 CEO Sudhanshu Vats said, “The regional entertainment broadcast pie commands ~30% viewership in the Indian broadcast space and as consumer preferences are moving towards segmented regional content, this share is only going to grow. This merger allows us to create a single brand that can leverage the individual strengths of the regional channels and harness synergies in terms of content strategy and business processes, helping us amplify long term value for Viacom18. I am particularly pleased that this process has been completed at an opportune time when we are gearing up to celebrate our 10th anniversary, in 2017, with a bigger and unified Team Viacom18.”

With this merger, not only the regional brands but also the Prism TV workforce will become part of Viacom18 and be assimilated seamlessly into its cultural ethos.

Viacom18 had recently launched Colors Super, its second Kannada GEC, further strengthening its share in the Kannada market which it already dominates with Colors Kannada. With this merger, the network seems poised to significantly dial up its regional play at a time when the regional GEC genre is fast emerging as the next ‘big thing’ in the Indian broadcast sector.

September 2, 2016
Viacom18 completes merger of Prism TV

Mumbai: Viacom18 has completed merger of Prism TV Private Limited, thereby integrating five regional channels – Colors Kannada, Colors Marathi, Colors Bangla, Colors Odiya and Colors Gujarati within its fold.

Commenting on the merger, Viacom18 CEO Sudhanshu Vats said, “The regional entertainment broadcast pie commands ~30% viewership in the Indian broadcast space and as consumer preferences are moving towards segmented regional content, this share is only going to grow. This merger allows us to create a single brand that can leverage the individual strengths of the regional channels and harness synergies in terms of content strategy and business processes, helping us amplify long term value for Viacom18. I am particularly pleased that this process has been completed at an opportune time when we are gearing up to celebrate our 10th anniversary, in 2017, with a bigger and unified Team Viacom18.”

With this merger, not only the regional brands but also the Prism TV workforce will become part of Viacom18 and be assimilated seamlessly into its cultural ethos.

Viacom18 had recently launched Colors Super, its second Kannada GEC, further strengthening its share in the Kannada market which it already dominates with Colors Kannada. With this merger, the network seems poised to significantly dial up its regional play at a time when the regional GEC genre is fast emerging as the next ‘big thing’ in the Indian broadcast sector.

September 2, 2016
Ambani’s disruptive digital India Jio “datagiri” gameplan

MUMBAI: The Mukesh Ambani-promoted Reliance Industries Ltd on 1 September unveiled ‘datagiri’ (dominace via data services) coupled with disruptive marketing tactics in classic Reliance style — all dedicated to Prime Minister Modi’s Digital India dream.

And while Ambani enumerated the many features of Reliance Jio service, the group’s telecoms and value-added services company, for about 45 minutes in a speech at RIL’s AGM here, there was mayhem on the stock markets. Crores of rupees were wiped off in fortunes as share prices of incumbent telcos tumbled. An analysis by a business news paper estimated that many listed telecoms companies, including younger brother Anil Ambani’s Reliance Communications, lost over Rs 11,0000 crore on the markets.

While the stock markets were witnessing a bloodbath, Ambani told his shareholders, “In the journey of time, there comes a few life changing movements. Our Prime Minister Shri Narendra Modi’s inspiring vision of a “Digital India” is one such movement. Jio is dedicated to realizing our Prime Minister’s vision for 1.2 billion Indians. Jio will give the `power of data’ to each Indian to fulfill every dream and to collectively take India to global digital leadership.”

Sample some facts: free voice call for Jio customers; data at almost 1/10the the price of those prevailing now; no roaming charges; one million Wi-Fi hotspots around the country by middle of next year; 100 per cent VolTe network that allows simultaneous usage of voice and data services; all customers to get freebies of voice calls, data usage and video streaming totally free 5 September to 31 December, 2016; a 4G network coverage of 18,000 cities and towns & and over 200,000 villages; student discount of 25% on data usage and a promised investment of about US$ 14 billion in the Reliance Jio ecosystem.

“The Jio ecosystem stands tall on five fundamental pillars (of) best quality broadband network with the highest capacity; a world of affordable 4G smartphones and wireless IP devices; compelling applications and content; superior digital service experiences and affordable and simple tariffs,” Ambani said, sending the Indian telecoms consumers, reeling under indifferent services provided by the present from incumbents, into a tizzy and queuing up for a Reliance Jio connection that has plans to cover 90 per cent of India’s population y March 2017.

Jio’s suite looks compelling. Apart from a state-of-the-art pan-India digital services business and fixed and wireless broadband connectivity offering superior voice and data services on an all-IP network, Jio will also offer end-to-end solutions that address the entire value chain across various digital services in key domains such as education, healthcare, security, communication, financial services, government-citizen interfaces and entertainment.

According to reports, the company filed its tariff plans with the Telecom Regulatory Authority of India (TRAI) on 1 September 2016.

Reliance Retail Ltd, another subsidiary of RIL, has introduced a slew of affordable 4G LTE smart-phones under the LYF brand, starting at Rs. 2,999. More feature-rich models will be available at progressively higher price-points like Rs. 3,999, Rs. 4999 and so on. The company has also tied up with smart-phone makers like LG, Samsung and Micromax to bundle Jio SIM and other free services.

If all these were not enough, Ambani announced setting-up of the a venture capital fund, where Jio will work on creating Jio Digital Entrepreneurship Hubs in key cities and towns of India. The Jio Digital India Start- up Fund has set aside Rs. 5,000 crore to be invested over the next five years.

“In this era, if you are not digital, and if you don’t have globally competitive digital tools and skills, you simply will not survive. You will get disrupted. You will be outcompeted. You will be left behind. You will become irrelevant. India and Indians cannot afford to be left behind. Today, India is ranked 155th in the world for mobile broadband Internet access, out of 230 countries,” Ambani elaborated, adding that Jio services are aimed at bringing India at par with developed telecoms market.

If things work out as planned, then India’s broadcast ecosystem can start seeing an even great shift in consumption of video on mobile handsets, smart TVs, and on on-the-go devices.

“Clearly, the data plans could lead to a price war in the segment with others being forced to follow suit,” says an industry observer. “All this is good for the consumer as prices will only head further south and the more they do, the more video will be consumed digitally. Which is fabulous for the OTT ecosystem that is currently being nurtured by independents and the broadcast majors.”

Jio Welcome Offer

The Jio ‘Welcome Offer’ provides an opportunity to every Indian to learn, try, customise and experience high quality digital services, without paying for the services up to 31 December, 2016 after which the applicable tariffs will apply.

The company also proposes to use this time period to fine-tune its services and resolving interconnection issues with incumbent players.

“In the last month alone, Jio customers suffered over 5 crore (50 million) call failures to other networks because of insufficient interconnect capacity,” Ambani said hinting at the all-out war being played out with incumbents accusing Reliance of not playing fair— an allegation tossed back by Reliance to competitors. “The onus is rightly on the incumbent operators not to misuse their market power by creating unfair hurdles,” Ambani reiterated.

Jio may extend the period of free services in case Jio subscribers are not able to get adequate experience of seamless connectivity across the network due to point of inter-connect congestion, mobile number portability restrictions and if the quality of service parameters are not as per the benchmarked by desired by company management.

Existing `invited’ or test users of Jio, who enrolled for the Jio Preview Offer, will be transitioned to the Jio Welcome Offer.

Tariff Plans

The Company filed detailed tariff plans with TRAI. Ambani enumerated the following principles used for formulating the tariff plans:

i)       Benefits of technology would be passed onto customers. All domestic voice calls for Jio customers will be absolutely free, across India and at any time. Domestic roaming charges will not apply in Jio tariffs.

ii)      Data tariffs have been made highly affordable, with full transparency, without any associated conditions. The company is offering the lowest LTE data rates in the world. Additionally, it would offer unlimited night time LTE data.

iii)      The Jio-Apps bouquet, which is worth Rs. 15,000 for an annual subscription, will be available complimentary for all active Jio customers up to 31 December 2017. This has been done to make digital life available to everyone.

iv) A special student discount offer, with 25% more data on the main tariff plans, would be offered to all students.

v) Jio has introduced a simple tariff structure with only 10 main plans, designed to fit every budget, as against the 22,000 tariff plans prevailing in the country today.

These are summarised here:

Industry Reactions

An official statement from British telecoms giant Vodafone India said, “We have always offered great value to our customers, backed by excellent customer service, a nationwide presence, and Vodafone SuperNet, our best network ever. We will continue to do so for our hundreds of million customers across the country.”

Cellular Operators Association of India (COAI), an apex body of telcos in India, which had gone public over differences with member Reliance Jio taking the war of words to the Prime Minister’s Office, welcomed the announcements.

“Reliance Jio is a valued member of the COAI. We wish to congratulate them on the announcement of the launch of their services. As a valuable member of the association, we welcome them with great warmth and applaud the bold vision of Mukesh Ambani and the innovation he proposes to bring to the industry,” Director General COAI Rajan S. Mathews said in a statement.

“We welcome Reliance Jio’s entry to the digital world and wish them the very best. We also welcome Jio’s call to leading operators to work together. As a responsible operator, we will fulfill all our regulatory obligations as we have always done,” Bharti Airtel, India’s largest telecom operator in terms of subscribers, said in a statement, adding,”Over the last 20 years, Airtel has been contributing towards building a digitally enabled India and remains fully committed to and take leadership in supporting the government’s Digital India vision. We will continue to innovate and deliver best-in-class products and services to our customers.”

Content aggregators and OTT players were also quick to hail Jio’s game plan. Zee Entertainment Enterprises MD and CEO Punit Goenka tweeted: “Mukesh Ambani’s #datagiri opens up a new chapter for the telecom industry and for the consumers! The data plans launched, which are cheapest across the world, are indeed a boon for content creators and consumers!”

Viacom 18 Group CEO Sudhanshu Vats said in a tweet that Reliance Jio is truly changing the face of India’s telecom sector. “This is #digitalrevolution!” he added. Viacom18 is a joint venture between Viacom Inc and RIL-controlled Network18 group that operates several news and entertainment TV channels, including Colors and Colors Infinity, apart from other media properties.

As many years back Reliance Telecommunications, part of an unified RIL under Dhirubhai Ambani, had created disruptions in the nascent Indian telecoms market, over a decade later his elder son, Mukesh, is replaying the disruption saga, albeit more digitally. Déjà vu indeed!

September 2, 2016