MxMIndia

Category: MEDIA

  • Digital offers the most cost-effective way of communicating or advertising, says Chandrakanth B N, Co-Founder and Managing Director, Theorem India

    Digital, the efficient earner: B N Chandrakanth, Theorem

    By Robin Thomas

     

    Theorem, a technology company focused on digital marketing or online media operations, started at a mere number of four, and today has over 1000 people  with offices in the Americas, Asia Pacific, Europe and the Middle East. The company provides a broad suite of digital solutions in areas ranging from creative services and media operations to reporting and analytical services. In conversation with MxMIndia, Chandrakanth B N, Co-Founder and Managing Director, Theorem India, spoke at length about the company’s journey over the last ten years since its foundation in 2002. He also spoke about his India plans, specifically post Rs 100 crore investments in India, and much more.

     

    Q: From mere 4 people in the organisation, today Theorem is said to be more than a 1000 in just 10 years, over 150 clients… What are the key drivers that have led to this success?

    We are more of a technology player in this domain. One of the biggest growth drivers for Theorem has been the growth of the digital media over the last 10 years. Even in mature markets like the US, the overall ad spends going to digital was only 7 percent; the digital ad pie has of course doubled over the years. We set up our company with the vision to focus on the digital media operations domain. What we brought was the strength of the strong Indian IT service business ie efficiency and technical knowledge, while keeping the costs low for our clients. This became very attractive to our clients in the west, and so our team achieved better quality service delivery than their own teams based in New York or San Francisco etc. Hence, it was very attractive for companies in the digital media space whether it is an agency or publishers or technology companies to work with us because we brought in both domain expertise plus we brought in the scales of operations and very importantly the technical knowhow and skills required. These are some of the factors that I believe helped us grow in the last 10 years.

     

    Q: What would you say are some of the learnings so far in the last 10 years?

    Digital offers the most cost-effective way of communicating or advertising. Not just cost-effective, but it is very effective in terms of reach as well. When we started, display and email were two big key drivers for digital marketing. Right after we started, Google took off, which basically brought in search marketing and so search became a key element of the digital marketing eco-system. We adapted to these changes and then obviously social media came along and mobile came along. So we have seen an evolution of different media vehicles within the digital sphere. We also saw a lot of technological innovation happen within this domain. The evolution of this space has been very fast and there has been so much technology coming in, and there has been much more efficiency too.

     

    Q: So, has there been a change in the way the marketers have approached digital media over the years?

    Absolutely. Since we have largely worked with western markets, we have definitely seen that change wherein marketers or brands are adapting to digital a lot more. We can see that in the numbers ie doubling of the digital ad spends from 7 to 14 percent. There is a lot more awareness about the effectiveness of digital advertising in the western markets and marketers are also a lot more demanding as far as their requirements from the media are concerned. It is a fairly mature market today.

     

    India on the other hand is still an evolving market. Marketers here need a lot more education to understand the benefits of the digital media, its effectiveness in delivering better ROIs, how digital is going to be different from the traditional media, and so on… So, there is still a fair bit of education that is required. We are seeing changes and I believe a company like ours can play a huge role in educating the Indian marketer. I still believe that there is a lot to be done in the Indian market.

     

    Q: What are your India-specific plans? Theorem will be investing Rs 100 crore in India over the next 3-4 years… What is the nature of these investments?

    We have a large facility and teams based out of India, supporting our global clients right now and so we are looking at expanding on that. In Mysore we have our own campus and we are looking at expanding that. More importantly though we are looking at India as a market and how we can take our domain expertise and add value as opposed to being a large-scale IT support organization. We are also trying to be in the forefront of the marketing itself and help with more innovation. So, yes in the next four to five years we are looking to expand our operations from both facilities and team perspective which is potentially a Rs 100 crore investment.

     

    Q: You have two offices in India, Mysore and Bangalore… Any expansion plans within India?

    Yes, as the industry evolves further this is definitely a possibility. It is nevertheless early years for us, but we are definitely looking at probably newer cities, newer regions. The operation centers are in Bangalore and Mysore right now so that may continue to grow in these regions but, if we see the need we may even look at other regions.

     

    Traditionally US has always been a very large market for us, UK would be the next largest and then Europe but, where we are really seeing growth is in regions like Australia and Middle East. In India we have to do a lot of work in terms of creating solutions and that is what we are working on right now. India as a market is very interesting for us, and we are definitely seeing growth in some of the non traditional markets as well.

     

    Q: What is the business model you follow? Which of your services bring bigger share of revenue – creatives, media operations, analytics, consulting? Any newer services we would see you introduce this year or in the near future?

    Right now we are an IT services company supporting the digital marketing world. Largely we provide experienced or trained resources to support online media operations. So, this is really our business model, it is a traditional IT services model but, then we are obviously trying to move up the value chain and provide more high-end services for some of the local markets.

     

    Our revenues are spread evenly across our services, our media operations have been a big portion of our business and all the other services are also growing quickly as well. We are working on some new solutions and products, a couple of which we will launch soon. Some time later this year we will be launching another product and some time next year we aim to bring in some more innovative solutions to the market.

     

    Q: What rich media services does Theorem provide?

    Theorem provides end-to-end rich media services including creative development, trafficking and QA (quality assurance), across a range of media including mobile, email, banner ads, landing pages and micro sites. Furthermore, our expertise spans technologies including MediaMind, DoubleClick Studio, Eyewonder, PointRoll, and Flashtalking among others. Theorem strength and key differentiation lies in its depth of knowledge and breadth of services in providing rich media QA that’s extremely complex and highly evolved. In fact, we are one of the very few firms globally that offer this service to our clients.

     

    Q: And what do you think are the biggest concerns or challenges that Indian markets face, as far as rich media ads are concerned?

    Bandwidth issues in India are a big concern as the internet infrastructure needs to mature a lot more for the mobile rich media ads to become more popular. I believe it has to evolve, the infrastructure needs to get better and I think once we see our infrastructure improve rich media ads will also get more popular.

     

    Q: We have been witnessing some consolidations in the digital industry, with a lot of mergers and acquisitions lately… What is your take on these developments? Good signs for the industry?

     

    I believe it is a sign of maturation for the digital industry in India. I personally think it is a good sign; there is a lot of focus on India. So, as the market matures, our internet infrastructure gets better, and we are able to convince the marketers that digital is a more effective medium for them to start leveraging. We have a huge youth population and they are all going to get on the internet and the easier it gets to log onto the internet, obviously the larger the population you will have to market to. Therefore all our tier II and tier III cities need to get better bandwidth and internet infrastructure.

     

    Q: And are we going to see Theorem too acquire some agencies soon …?

    Potentially yes. There is always a possibility of this as we grow …

     

    Q: What kind of impact did the global economic conditions have on your international and India business? Did it have any impact on the industry?

    Interestingly, we never saw never saw a slowdown in the last 10 years. In fact 2008-09 were one of the biggest growth years for us. During the slowdown we have been hiring and giving raises. So digital provides a cost-effective means of communication and advertising. During the years of slowdown more people look at cost benefits of digital advertising. Although the overall spends may shrink, the piece of the pie is definitely going to increase for digital during these times.

     

    Q: What are your growth targets and goals over the next one or two years?

    We are looking to double by the end of 2015…

     

  • Are endless soaps, reality shows and mythologicals all that there is to general entertainment?

    MxM Mondays | Is there a crisis of ideas in Hindi GECs?

     

    By Ananya Saha and Meghna Sharma

     

    From ‘Buniyaad’ to ‘Bade Achhe Lagte Hain’, from ‘Mahabharat’ to ‘Satyamev Jayate’, Hindi entertainment has come a long way. In the channels’ bid to outdo each other in the TVR race, content can take a back seat. Can lavish sets, repeat telecasts, and infinite numbers of episodes help the GECs to win the race? Is the audience ready to lap up the same themes and content?

     

    The theme for this week’s MxM Mondays is ‘Is there a crisis of ideas in Hindi GEC?’. MxM spoke to a crosssection of industry veterans to find out.

     

    Ajay Kakar, Chief Marketing Officer – Financial Services, Aditya Birla Group

    Today, there appears to be a herd mentality when it comes to programming on GEC channels. What we have always noted in Bollywood seems to now reflect on TV too: the ‘success formula’ syndrome.

     

    If one kind of serial or format succeeds, there appears to be a rush, across channels, to try and follow and replicate that seeming formula, be it the trend of reality programmes, dance shows, talent hunt or even soaps.

     

    This apparent commoditisation makes decision-taking more difficult, as a marketer, when you are screening the market for opportunities.

     

    Anamika Mehta, COO, Lodestar UM

    In many ways, yes. We continue to see the same content and programming repackaged and marketed differently. While a couple of fresh initiatives have been undertaken over time, probably the fact they have been literally a handful is reflective of crisis of ideas. So there have been soaps and ore soaps with some twists right from the ‘K’ days to some with a social tack to comedy to the global reality formats customised to Indian flavour and culture. Given the fickle Indian viewer, and the fact that a GEC talks to the lowest denominator; the challenge is to bust existing myths and formula. And experiment large for success.

     

    Anita Nayyar, CEO, India and Southeast Asia, Havas Media

    When Colors was launched it brought a set of fresh content and then both Zee and Star followed it. It was a refreshing change because everyone was fed-up with the saas-bahu sagas. And as for the reality shows, most GECs are following safe genre which has worked well with the viewers. One must realise that programming costs are high and when a programme doesn’t work, it affects the channel. Therefore, a channel has to be very careful about what it puts out in front of the viewers. So, a time-tested genre is what most of them opt for, unless and until a broadcaster is very confident about a format and willing to take the risk.

     

    Indian viewers in general prefer only certain genres – serials, Bollywood related shows, reality shows (where they can related to the lesser known aam adami) and movies. Therefore, channels too prefer to revolve around these genres. For a channel viewership is important because only that will bring in the revenues.

     

    Himanka Das, senior vice president – West, Carat Media India

    Well, I won’t call it crisis, it has definitely become dynamic. Considering the dynamic nature of viewership patterns, viewers do not watch channels by appointment viewing but they watch programmes by appointment viewing. Having said that, it also reflects the way a broadcaster changes programming strategy within a span of 13 weeks most often, though very few of them that go for a longer period. In the term ‘GEC’, the word entertainment has significant relevance to viewers; so long as content entertains the audience, that becomes the longevity of a programme. In that regard, broadcasters do realise the competitive nature of business and are constantly trying new formats and topics in relevant time bands to keep eyeballs going.

     

     

    Jahnavi Pal, TV analyst and columnist

    If one surfs through different Hindi GECs today, he/she will find the same clichéd concepts and sometimes even titles. Today the trend is to name a serial after an old Hindi song! Broadcasters feel that is what viewers want, but to be frank it’s not true. No one is ready to take a risk. They follow each other or ride on a previous show’s success. For example, if a show XYZ was a success then others will have shows which are loosely based on it. However, there are some who are ready to take a chance; take Star Plus for instance, which showcased a revolutionary show – Satyamev Jayate. Agreed, it’s not a primetime soap opera, but a GEC did take a risk in showcasing a show like that on a Sunday morning. There are other shows like ‘Kuch toh log kahenge’ and ‘Bade achhe lagte hain’, which started off very well but somehow now have lost their plot and have become diluted. Therefore, it wouldn’t be correct to say that there is a dearth of ideas because there are plenty of them, it’s the willingness of a channel to take risk is more crucial to take the industry forward.

     

    Nikhil Sinha, producer, Triangle Film Company

    There is scarcity of fresh ideas on GECs. Right now, the trend is about following each other; if one idea works for a channel then others too will start making projects on similar lines. New concepts are considered risk-taking propositions. However, one shouldn’t be surprised if one channel took the risk to experiment and it becomes a hit, others too will follow suit. I feel that GECs should try out new concepts as audiences are maturing too. However, what will click can’t be guaranteed in advance. Having said that, I also know that consensus between business and entertainment is also very important.

     

     

    Sajal Mukherjee, Media veteran

    All channels are trying their level best to create distinct content and appeal to specific audiences. Star Plus, which is the number one channel, dominates the scene when it comes to well-produced programmes, and all the other channels like Zee, Sony and Colors try to emulate the same formula. The shows on every channel go on and on, and they try to stretch the same content without changing the format, over a very long period of time.

     

    It is actually a vicious circle. Each serial has three important parts: content producer, advertiser and viewer. If the channel produces a good show, but it gets no advertisers, because of no or less viewership, the content producer has to balance the budget of the show. If there is no money, the production values also go down.

     

    The channels need to experiment more. KBC has had a good run, and still enjoys dedicated viewership. Satyamev Jayate was appreciated. It is only a question of stretching the innovation. Every channel’s focus is to get the viewership, and advertisers. Once they start making money, then they produce better shows. But it is important that every ‘me too’ channel tries to create different programming.

     

    Saurabh Srivastava, Producer, Panglossean Entertainment (of ‘Phir Subah Hogi’)

    I do not agree that Hindi GECs are facing a crisis of ideas. We, the producers, brainstorm every day to come out with new ideas. At the end of the day, it is just a competition. There are so many Hindi entertainment channels, we try hard to make our shows distinctive and different from all other shows. We work very hard on every show. It is definitely quite hard, but we have to keep trying.

     

     

     

    Shailesh Kapoor, CEO – Ormax Media

    There is definitely no dearth of ideas in GECs. The GEC category inIndiais only about 20 years old, and has constantly evolved in terms of new ideas, formats, stories and genres. Having said that, the culture of daily shows has stretched the GEC content machinery over the last 12 years. The pressure to deliver episodes round the clock means that the creative teams spend less time on ideation and development, and more on execution. This, in turn, leads to an under-exploitation of the potential. Channels and production houses should focus on creating a robust pipeline of strong ideas, which can be tapped when the requirement arises. This would ensure that the creative abilities of the teams, both channel and production, are utilised to their potential. Focus on content development, as against just content production, will ensure that better, bigger ideas see the light of the day more often than what’s happening currently.

     

    Sukesh Motwani, head – fiction programming, Zee TV

    I wouldn’t say that there is a crisis of ideas in Hindi GECs; on the contrary they are doing their best to entertain their audiences. However, I do think that broadcasters will have to decide and show confidence about how much they are willing to experiment with. Zee has always believed in going a step forward and has taken bold steps. For instance, right now we have a paranormal show called Fear Files and earlier we showcased Jhansi ki Rani, a historic saga about a female protagonist. Who had ever thought of it before?! Even our other shows like Choti si Zindagi and Karol Bagh have been different in their approach.

     

    Today, channels are focused on genres like thriller, crime, family drama; but we have to answer the bigger question – are GECs ready to get into genres like dark comedy, science fiction or a violent tale? There is an on-going debate regarding this because most GECs cater to family audiences. So one does have to take this into account. Therefore, for me, the bigger question is, how many genres are GECs open to?

     

  • The controversy and litigation over television viewership measurement may lead to question marks being raised on the final selection of the vendor for the unified print readership study

    NDTV-TAM war impact may be seen in print if Nielsen is appointed IRS research vendor

    By A Correspondent

     

    Measurement has suddenly become a bad word in the Indian media. Over the last month, there has been much sound and fury over TAM Media’s television ratings with news network NDTV filing a 194-page lawsuit in New York. Since last week, the channel and WPP, principals of TAM’s part-owner Kantar, have been sparring via statements issued to the media.

     

    But now MxMIndia learns that there could be rumblings in the print space too, over the appointment of the research company to conduct the unified Indian Readership Survey.

     

    The Board of the Media Research Users Council (MRUC) which manages the Readership Studies Council of India (RSCI) is scheduled to meet today and announce the results of the contract following the RFP (Request for Proposals) issued last year.

     

    In a departure from the prevailing system of the research body being a partner and pocketing 85 percent of the revenues earned from sales, in the proposed system, the researcher was to be vendor being paid a flat fee. Hansa which has been conducting the study for MRUC since around eight years tied up with Ipsos and presented a joint proposal demanding a fee of Rs 10 crore. Nielsen’s original proposal was of Rs 12 crore, but the research major has been beaten down to a little below Rs 11 crore.

     

    However, ever since the news of the appointment of Nielsen was leaked last week, it appears that the controversy plaguing the television media research space could well lead to rumblings in print if it is indeed Nielsen which will be awarded the contract.

     

    MxMIndia too learns from its sources that Nielsen will indeed be appointed vendor for the IRS. The relationship is not of partnership as of now, but that of a client-vendor, where the research company has to undertake the exercise as per a set of instructions and for a fee. A global tender was issued and a technical committee carefully pored over each of the proposals. Various proposals came in but were rejected. The Hansa-IPSOS proposal reportedly did not find favour with the decision-makers because of the consortium modeit followed. It is believed that there was opposition to Hansa from some quarters.

     

    An MRUC member this correspondent spoke with raised some alarm. “While the work put in by the technical committee is commendable and selfless, they ought to have considered the mess that Nielsen has been in thanks to its co-ownership of TAM Media. The 194-page lawsuit sees the firm getting noteworthy mention. Moreover, there have been question marks over the retail audit too,” he said on condition of anonymity. “But it would be wrong to jump to conclusions on Nielsen’s appointment. If it is indeed true, we will raise the questions and convince ourselves. We clearly wish to be certain of the new vendors’ expertise in newspaper readership measurement – either globally or in India. We can’t afford to have any publisher, advertiser or agency questioning the measurement exercise and the bona fides of the vendor as has been the case with television.”

     

    That last bit we agree with. The WPP statement came in at 10.43 pm IST last night.

     

  • WPP and NDTV bring the battle over TAM ratings from the courtrooms to feeding the media with statements countering the other

    NDTV v/s WPP: War of words over the Weekend

    By A Correspondent

     

    I need another holiday, I told the boss.

    But why, he asked?

     

    Because since the time I thought I could bring in the weekend with a drink, the inbox has been inundated with statements from both NDTV and WPP.

     

    Wait, why WPP? The case was against Kantar, right?

     

    Oh, yes, it is. But Kantar is a subsidiary of WPP. And while it’s a listed conglomerate, Sir Martin Sorrell is bossman and he decides what WPP will do.

     

    So while it was good to see the Big WPP Boss himself getting his hands dirty, I was a little surprised to see him speak to the Indian media on the issue. Interviews with Sir Sorrell don’t happen daily, so who wouldn’t want to miss the opportunity.

     

    In one of the interviews, the WPP boss has even suggested that since NDTV’s lawyers essentially deal with litigations for restaurants, the lawsuit has been served correctly.

     

    Ah, well.

     

    Here are the six statements:

     

    26 Aug: Statement saying WPP takes India extremely seriously. That it is “ludicrous” to say WPP is taking India lightly

     

    25 Aug: WPP reacts to the 6 points raised in NDTV’s statement of the same day. Statement says Eric Salama responded to a mail sent by Vikram Chandra on July 27

     

    25 Aug: NDTV responds to WPP’s statement of 24 August (as well as to media interviews). Stings WPP and Sorrel, and sad to read these words: we request Sir Martin not to take India lightly. We request him to clean up his ratings operation in our country and to refrain from using his global PR clout to perpetuate corruption in his India ratings operation

     

    24 Aug: WPP issues a statement in Q&A form. Asserts NDTV’s decline is not down to any perceived failures in TAM data. In an interview with Mint, Sorrell says: “Nothing has been served properly. Nothing at all, that is why we call it a hypothetical lawsuit. The two-lawyer firm (engaged by NDTV) is based in Florida and it specializes in restaurant law. This is an Indian issue, not American. It is a bit of mischief on their part.”

     

    23 Aug: NDTV responds to WPP’s statement. “We request that WPP should focus on honestly fixing (for want of a better word!) their badly damaged and dishonest ratings system in India.”

     

    22 Aug: WPP statement on the NDTV’s “hypothetical” law suit. Says: “WPP is also giving active consideration to issuing proceedings against NDTV for defamation and has instructed its lawyers accordingly.”

     

  • WPP responds to NDTV's statement which in turn had rubbised WPP's earlier statement

    Day 3: Now WPP responds to NDTV salvo

    So you read what NDTV said about WPP’s statement. Now here’s what we just received from WPP in Q&A form to make for better understanding of the situation.

     

     

    Q1. In its press statement, NDTV has said, while they claim that the suit has not been served, WPP surely knows, or should know, that service was indeed made on the 10th of August in New York, and processes under the Hague Convention are also underway. What is the exact situation?

     

    Answer:

    We are aware that the New York lawyers acting for NDTV have filed affidavits of service with the New York court claiming to have served the proceedings on various WPP companies. Despite this, valid service has not taken place and we will be drawing the Court’s attention to these inadequate and misleading statements in our motion to dismiss the claims in their entirety.

     

    There has been a faulty, and clumsy, attempt to serve on one company, but nothing on the others at all. No lawyer acting on behalf of any WPP company has made any such statement. In fact, Kantar Media (Research) UK is not even named as a party to any lawsuit.

     

    We are taking the unusual step of proceeding to dismiss the hypothetical lawsuit, despite the lack of any valid service, simply due to the attempted “trial by media”, which has been generated by the (unserved) lawsuit. In any event, there is no merit in the purported claims, nor do the US courts have any jurisdiction to hear any such claims.

     

    Any claim should be made properly, in India, in front of the Indian courts, which are more than capable of properly hearing any valid claim.

     

    NDTV appears to be blaming their poor financial performance on the ratings. NDTV’s financial state shows a dramatic decline, with its market capitalisation declining from around US $800 million in early 2008 to around US$60 million today. Over the same period NDTV’s share price has declined from a high of Rs 512.70 to around Rs 50 today. NDTV is operating in an extremely competitive market, and its competitors have also been in a difficult position. However, NDTV’s decline is not down to any perceived failures in TAM data.

     

    Q2.Where and when does WPP plan to file the defamation lawsuit?

     

    Answer: As referred to in its statement, WPP is considering an action for defamation and this consideration will include the appropriate jurisdiction.

     

    3. Why doesn’t the operating TAM file the case?

    Answer: TAM will be considering its own action.

     

    4. You say that WPP plans to file an application in New York to strike out the NDTV lawsuit. When will that happen?

    Answer: The application is imminent.

     

    5. What else do you plan to do?

    Answer: WPP is disappointed about the “trial by media” which has been initiated by NDTV. As we have said, TAM has been, and will continue to be, committed to working with the industry to improve the use of technology, coverage and transparency of the TAM data. A series of additional steps has very recently been agreed with the industry.

    WPP is committed to working with all industry stakeholders: we would be very happy to work with the mooted BARC structure: we work extremely well with similar bodies all over the world and would be happy to do so in India.

     

    6. You said in your statement “TAM has taken and continues to take stringent measures to protect the panel against repeated attempts at tampering by currently unknown parties and has recently agreed a series of additional steps with the industry to remove any question marks about the quality and reliability of the TAM data.” The timing of announcing these steps makes it look like TAM is responding to NDTV’s lawsuit. Why didn’t TAM take these steps earlier?

     

    Answer: In fact the steps referred to are just the latest action in an ongoing process of dialogue and improvement in the collection of data and not simply a reaction to the hypothetical lawsuit referred to in the press

     

     

    Now, don’t be surprised if you find an NDTV statement tomorrow… our inboxes are waiting! But, on a serious note, all of this is sad. And sad for the Indian broadcasting sector.

  • PR is clearly the main aim, as the WPP statement contains a number of legal flaws, NDTV notes, asking WPP to correct its "badly damaged and dishonest ratings system in India"

    Battle of courts spills to media statements, as NDTV rubbishes WPP claims

    By A Correspondent

     

    It was meant to be a battle fought in the courtrooms, but not unexpectedly, it’s now got down to the streets. It started with a statement issued by WPP on Wednesday, and on Thursday, news broadcaster NDTV too issued a statement.

     

    We publish it as is, so that none of the finer details are lost:

    NDTV is baffled and amused by the PR effort by WPP. PR is clearly the main aim, as the WPP statement contains a number of legal flaws.

     

    It is indeed strange that they term the suit as hypothetical as it is available for everyone to read in full on the website of the Supreme Court of New York (as reported first by the Hollywood Reporter and read by many since). In fact it appears as though WPP must have read it too as they refer too many details in the NDTV complaint and respond with several false denials!

     

    Moreover, while they claim that the suit has not been served, they surely know, or should know, that service was indeed made on the 10th of August in New York, and processes under the Hague Convention are also underway as is the normal procedure. Moreover, the lawyers for Kantar Media Research (UK), have already confirmed to NDTV that the service on their client was acceptable in New York. In fact, matters have progressed much beyond ‘service’; the lawyers for Nielsen have been in touch with our lawyers and have requested for an extension. In addition, the CEO of Kantar has been in touch with us and has acknowledged receiving the complaint. NDTV has affidavits to substantiate this.

     

    While many may attribute sinister motives to WPP’s Statement which is full of factual and legal errors, NDTV would give them the benefit of the doubt and assume WPP has made a silly error which simple cross-checking through their internal systems will soon correct. If all else fails, for details of the complaint we suggest they visit the Supreme Court of New York’s website where the “non-hypothetical” complaint is detailed in full.

     

    We suggest WPP refrain from using their massive PR machine to make baseless threats against NDTV. Instead we request that WPP should focus on honestly fixing (for want of a better word!) their badly damaged and dishonest ratings system in India – which in their Statement they acknowledge they have control over and is their responsibility.

     

  • Ms Soni said that she always had issues with the number of boxes put up by TAM, as it (such a small number) was not enough to gauge the mood of a diverse nation like India

    Government concerned about TAM data: Ambika Soni

    By Vijaya Rathore

     

    The government has been concerned about the discrepancies in TAM Media Research’s TV viewership data for a while now, and has even questioned their methodology and transparency, Union information & broadcasting minister Ambika Soni said on Wednesday.

     

    In an exclusive interview to ET, Ms Soni said that she always had issues with the number of boxes put up by TAM, as it (such a small number) was not enough to gauge the mood of a diverse nation like India.  “I have asked questions about the methodology of TAM. I knew that they were not being transparent. When it came to the number of boxes, rural areas were not covered. Very populated states such as UP and Bihar were not covered.

     

    So, I felt that 7,000 boxes could hardly be indicative. How can you put boxes as conveniently as you want to and not cover more than half of the country?” the minister asked.

     

    Following NDTV’s lawsuit against Nielsen and Kantar Media – the co-owners of TAM Media Research – the I&B ministry has decided to support Prasar Bharati, the state broadcaster and the Directorate of Advertising and Visual Publicity (DAVP), the government’s media buying arm, to take legal action against TAM. Ms Soni said that the ministry is also open to support the broadcasters “provided they lodge a formal complaint with the government against TAM.”

     

    NDTV has filed a lawsuit against the companies in a New York court alleging TAM fudged TV viewership data to favour a few broadcasters for a bribe. Both NDTV and TAM have refused to comment on the issue.

     

    Concerned by the developments, broadcasters and advertisers are now asking TAM to stop publishing its data, and have been meeting the government on the issue.

     

    “Today everybody is talking about TAM… why didn’t we talk about it all this while? The issue was raised by the ministry and me several times in the past. I am glad that this issue is now coming out in the open, as this clearly shows that there is need for competition,” Ms Soni said.

     

    According to the minister, lack of transparency in TAM’s system does not only concern broadcasters, advertisers and media agencies, but also Prasar Bharati that operates Doordarshan and All India Radio.

     

    “Prasar Bharati is collecting facts and the figures and finally even they decide to put up a lawyer. We will have to allocate resources for which permissions have to be taken. If Prasar Bharati and DAVP feel that they have to take a legal action (against TAM), they will do so in consultation with the I&B ministry and the law ministry,” she said. In 2011-12, DAVP’s advertising spend was Rs 618 crore.

     

    Ms Soni said that there is a need to have an alternative to TAM, which is why Broadcast Audience Research Council (BARC) is underway: “We have had several meetings with the Indian Broadcasting Federation on BARC. I have had four meetings (from 2010-12).”

     

    Asked if she thought a tighter regulatory mechanism needs to be evolved to check such discrepancies in future, the minister said, “There have been  suggestions for setting up regulatory bodies for content, and to censor realty shows, but the government is against any strong regulatory mechanism and we are for self-regulation.”

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • Prasar Bharati, which believes that the TAM data under-represents terrestrial and rural reach of Doordarshan, is holding consultation with the ministry and contemplating appropriate action against TAM

    AAAI, ISA to meet TAM on Aug 16 as MIB, Prasar Bharti mull probe

    By A Correspondent

     

    The ministry of information & broadcasting and Prasar Bharati will jointly investigate allegations of fudging of television viewership by TAM Media Research. The two have also sought an explanation from TAM on this issue.

     

    Prasar Bharati, which believes that the TAM data completely under-represents terrestrial and rural reach of Doordarshan – the state broadcaster, is holding consultation with the ministry and contemplating appropriate action against TAM, a senior government official, who asked not to be named, said.

     

    “It is high time transparency and fairness came into the system,” the Information & Broadcasting ministry official said. The ministry has written to TAM asking for an explanation. “Within this week, we are also sending out reference letters to TRAI, the telecom regulator, and Competition Commission of India,” the official added.

     

    The Prasar Bharati board has already given in-principle approval to collate facts, seek legal opinion and hold consultations with the ministry on the issue of misrepresentation and under-reporting of data for Doordarshan by TAM.

     

    “Prasar Bharati also feels that TAM data completely under-represents terrestrial and rural reach of Doordarshan. We always felt that this has caused immense losses to the state broadcaster,” said the person.

     

    TAM Media Research India’s chief executive officer, LV Krishnan, said he has no comments to offer on the issue.

     

    New Delhi Television Ltd (NDTV) has sued The Nielsen Company, a global research and information firm, and its partner Kantar Media Research in a New York court for tampering with TV viewership data to favour broadcasters who allegedly bribed executives in its Indian JV, TAM.

     

    NDTV has filed a suit in the New York State Supreme Court seeking damages of around $1.4 billion for negligence and fraud and hundreds of millions more for interference and breach of fiduciary duty. Advertisers and media agencies depend on TAM data-the only available measurement for TV viewership – to negotiate ad rates.

     

    Meanwhile, concerned by NDTV’s allegations on TAM, the Advertising Agencies Association of India (AAAI) has called for a meeting with TAM officials later this week. “We are meeting the TAM officials to get the facts rights and understand the issue in the right perspective,” said Arvind Sharma, president, AAAI. The Indian Society of Advertisers (ISA) would be attending the meeting, which has been scheduled for August 16, 2012.

     

    “Since advertising agencies are involved in media planning and buying, which is dependent on TAM ratings, we need to know if there is anything to be concerned about,” said Mr Sharma.

     

    Advertisers also say that it was time for media buying agencies to stop relying only on TAM. “Our media buying agencies depend on the ratings provided by TAM. The onus is on marketers to demand from the agencies basis at which they have been spending the advertisers’ money. There have been issues like TAM’s sample size, but over a period of time lethargy had set in,” said Salil Kapoor, chief operating officer, Dish TV.

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • The apex bodies of advertisers and agencies assert they are not delaying the setting up of BARC

    It’s incorrect to blame us on BARC delay, say ISA & AAAI

     

    By A Correspondent

     

    With news network NDTV suing television measurement body TAM Media Research and its principals, it’s become critical that stakeholders of the proposed Broadcast Audience Research Council (BARC) get their act together to provide an adequate framework for research and ratings.

     

    For, if industry bodies do not act speedily, the government could well step in. It was hence interesting to read IBF president Uday Shankar’s assertion that the apex bodies of advertisers (ISA) and ad agencies (AAAI) have been speedbreakers in the setting up of BARC.

     

    Nagesh Alai

    This statement of not showing enough urgency has not gone down too well with the Advertising Association of India and Indian Society of Advertisers. Said Nagesh Alai, former AAAI president and current ex-officio member: “It is unfortunate that such a comment has been passed. At the end of the day, who are the constituents of the industry? The advertisers, broadcasters and advertising agencies and each of them have a role to play. When all of these are stakeholders, how is it possible that ISA and AAAI will be uninterested in moving BARC forward? The fact remains that we have been engaging with them regularly and have come to an agreement on what the constitution of the shareholding would be; what should be the constitution of the board of governance and what should be the operating principles. All these have been captured in the draft of Memorandum and Articles of BARC, which is with the IBF.”

     

    He added: “We’ve met and agreed in principle on the key issues and have put down those things in the document as it is very necessary to start off. It is lying with them now. As I see it, it is work in progress. There is no question of us not being interested or not wanting to take this forward – how can it be? It is just not a rational statement. Just to recall, three years ago, AAAI was one of the prime movers on BARC – it was our idea.”

     

    On the current status of the draft, Mr Alai said: “As of now, the Memorandum and Article document that needs to be signed by all stakeholders is with IBF. All the recommendations in the draft have been taken jointly by the three member bodies. It is just the question of whatever is there in the draft is seen and accepted by them and we sign and move on from there. As I see it, it would take another one or two months for the signing process to take place; it all depends on how soon IBF responds now. But let me tell you that we will continue to work in partnership so that we are able to come up with a system that is robust and liked by all.”

     

    Meanwhile, when asked for its standpoint on the issue, the ISA reverted with the following statement: “The Indian Society of Advertisers, who initiated the formation of BARC based on the World Federation of Advertisers’ best practice of forming a Joint Industry Body (JIB) for television audience measurement, would like BARC to start tomorrow. We would not like to join the blamegame, as a joint industry body BARC is necessary for robust and transparent TRPs. As for NDTV versus TAM issue, we cannot comment on it as the case is still sub judice.”

     

    Bharat Patel

    When contacted, Bharat Patel, past chairman of Procter & Gamble and chairman of ISA admitted to BARC facing some tough times but said that it will be back on track soon. “There have been ups and downs but you must understand that this is a new baby and it is bound to take a long time. Also, there are huge investments involved. But then it should happen soon,” he said.

     

    On the IBF president’s statement holding the ISA and AAAI responsible for the slow progression, Mr Patel said: “It is incorrect. It’s got nothing to do with the AAAI or the ISA. As I said, these things take some time. We have reached a stage where we are finalising the articles and once that is done it should move fast.”

     

    “One must also realise that people have their own job/business to cater to,” Mr Patel added. “One has to have enough time on hand as people who are involved in BARC have their own jobs to look at too. For me, the real issue is that people are not finding the time to get together. I cannot give a timeframe at this stage as I cannot speak on behalf of other people but then it will happen soon. In fact, ISA wants to get started with it from tomorrow itself as we were the ones who initiated the global best practice JIB by the name of WFA. But you will see it happening soon.”

     

    While the statements from AAAI and ISA reiterate the commitment to the cause of setting up a credible measurement metric, it’s critical for the trio of IBF, ISA and AAAI to put aside differences and work amicably to safeguard the future of the industry. The ball for now is in the industry’s court. If it doesn’t act fast enough, the government could also be an active participant.

     

  • Several broadcasting firms and advertising agencies say this has only established what has been an "open secret" in the industry, but this could be an opportunity to set things right

    Government mulls probe against TAM after complaints

    By A Correspondent

     

    The government is planning to launch a probe into the alleged fudging of television viewership data by TAM Media Research after several complaints from broadcasters.

     

    A top official in the Union information and broadcasting ministry, who did not want to be identified, said the government has received a lot of complaints about TAM in the past. “A lot of people have been raising concerns because of which we are looking at TAM very carefully. We will soon take some action,” he added.

     

    Broadcaster New Delhi Television Ltd (NDTV) sued The Nielsen Co, a global research and information firm, and Kantar Media Research, equal partners in

    TAM Media, for tampering with TV viewership data to favour broadcasters who allegedly bribed executives in their Indian JV.

     

    NDTV, which owns the news channels NDTV 24X7 and NDTV India, filed the suit in the New York State Supreme Court seeking damages of around $1.4 billion for negligence and fraud, and hundreds of millions more for interference and breach of fiduciary duty.

     

    Advertisers and media agencies in India depend on TAM data – the only available measurement for TV viewership – to negotiate ad rates. Any discrepancy in the data would have resulted in losses for several broadcasters, advertisers and ad agencies.

     

    News of NDTV’s lawsuit has created ripples in the media industry, with several broadcasting firms and advertising agencies saying this has only established what has been an “open secret” in the industry for a while, but this could be an opportunity to set things right.

     

    “I have always been saying that the TAM data is all wrong, fudged. And I have not changed my views on this,” said Subhash Chandra, chairman of Essel Group, which runs several TV channels under the Zee banner.

     

    “The allegations, which NDTV has made against TAM, are very serious in nature. It is a matter of concern for the broadcast industry. The industry in the past has raised issues like small sample size used by TAM. Even as a company, we have several times taken up issues with them.

     

    For example, we questioned them on this year’s IPL ratings. Given the large crowd in the stadiums we had imagined the ratings to be much more than what were released by TAM,” said Manjit Singh, CEO of MSM India, which runs the Sony and Max channels.

     

    Mr Singh added that MSM has taken up the issue with TAM. “They do come back with explanations but they may not always be satisfactory,” he said.

     

    In its 194-page lawsuit, NDTV claims that it had confronted Nielsen with evidence of data manipulation, including taped meetings with TAM India employees, which showed that they were willing to tamper data for bribes. Nielsen, according to NDTV, admitted in meetings and through emails that its data was being manipulated and that it was willing to address the issue by July 1, 2012.

     

    NDTV says that Nielsen continued to publish these ratings despite repeated demands to stop distribution of TAM TV ratings until the sample size was increased and a proper security mechanism was put in place.

     

    Another broadcaster told ET that it has taken up with TAM the issue of aberrations appearing in the time spent per viewer (TSV) numbers derived from TAM data several times.

     

    “We have raised concerns about skewed TSV patterns in select markets. It could be because of discrepancy at the ground level. But there has been no action from TAM,” a top executive at the broadcaster said.

     

    “We are totally disappointed at the lack of responsibility shown by TAM in dealing with this issue,” another broadcaster said, adding he has lodged a complaint with the I&B ministry about the fudged data.

     

    Most of the discrepancy is due to the small sample size, say experts and industry insiders. The current system is highly susceptible to manipulation. It is easy to manipulate the findings to distort the eventual numbers published by TAM, said one person.

     

    “I cannot say for sure if bribes are involved. But numbers are distorted without any logic and go unexplained. And it is easy to distort the numbers to favour someone,” he added.

     

    A media planner who did not wish to be identified said this is a chance to revive the Broadcast Audience Research Council (BARC) that was proposed by the Indian Broadcasting Foundation a few years ago. The government should also implement the Amit Mitra committee recommendations that talked about irregularities in the current measurement system.

     

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • NDTV has filed a suit in the New York State Supreme Court seeking damages of around $1.4 billion for negligence and fraud and hundreds of millions more for interference and breach of fiduciary duty

    Trade shocked as NDTV sues Nielsen,Kantar,TAM & others

    By A Correspondent

     

    New Delhi Television Ltd (NDTV) has sued The Nielsen Co, a global research and information firm, and its partner Kantar Media Research in a New York court for tampering with TV viewership data to favour broadcasters who allegedly bribed executives in its Indian JV, TAM India.

     

    In an unprecedented action, the Indian television producer and broadcaster, NDTV, which owns the news channels NDTV 24×7 and NDTV India, has filed a suit in the New York State Supreme Court seeking damages of around $1.4 billion for negligence and fraud and hundreds of millions more for interference and breach of fiduciary duty. Advertisers and media agencies depend on TAM data – the only available measurement for TV viewership – to negotiate ad rates.

     

    In its 194-page lawsuit, NDTV claims that it had confronted Nielsen with evidence of data manipulation, including taped meetings with TAM India employees, which showed that they were willing to tamper data for bribes. Nielsen, according to NDTV, had admitted in meetings and through emails that its data was indeed being manipulated and that it was willing to address the issue by July 1, 2012.

     

    NDTV says that Nielsen continued to publish these ratings despite repeated demands to stop distribution of TAM TV ratings until the sample size was increased and a proper security mechanism was put in place.

     

    The broadcaster has charged Nielsen and Kantar with “operating worldwide through a deliberately complex web of subsidiaries and joint ventures, creating, at least in India, a monopoly and abusing the power of that monopoly.”

     

    It has also called the Nielsen board of directors “proxies for the world’s largest and most powerful group of corporate takeover specialists (referred to herein and in Nielsen’s 2011 Annual Report as ‘Sponsors’)” and alleged that they took this approach to “‘cash out,’ as part of the typical leveraged buyout ‘exit strategy,’ making billions of dollars in profits.”

     

    Among the sponsors of Nielsen are KKR, The Blackstone Group, The Carlyle Group, Thomas H. Lee Partners, Alpinvest Partners, Hellman & Friedman and Centerview Partners. These sponsors, however, have not been made defendants in the suit.

     

    NDTV has also said that the problem extends to other markets such as Turkey and Philippines.

     

    NDTV managing director Vikram Chandra declined comment as “the matter is in court”. LV Krishnan, CEO, TAM Media Research said: “There is no comment to make right now as the matter is sub judice.”

     

    NDTV is being represented by law firms, Sabharwal & Finkel and Luthra & Luthra.

     

    The news created ripples in the media industry with many advertisers saying they were shocked by the developments. “I am shocked. They (TAM ratings) are a key component of all media investment decisions today,” said Madhukar Kamath, group chief executive officer and MD of advertising and media major, Mudra group.

     

    A media planner who did not wish to be identify, said: “We take TAM ratings very seriously and all our investments depend on them. It is hard to believe that a company like Nielsen, which invests so much in market research, would manipulate the ratings.”

     

    “There have been questions about the sample size of TAM and number of meters it uses to arrive at ratings, but in the absence of an alternative in the TV measurement space, we depend on TAM as large investments on advertising have to be made on the basis of some numbers.”

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

     

  • NDTV takes TAM, Nielsen, Kantar and others to court for $580 million

    NDTV takes TAM, principals to US court for $580 million [updated]

     

    By A Correspondent

    Leading news and lifestyle television broadcaster NDTV has taken TAM and its principals Nielsen and Kantar to court. “We confirm we have filed a lawsuit in the Supreme Court of New York State. Because the matter is sub judice, we have no further comments at this time,” said an NDTV spokesperson. And here’s the response from the TAM spokesperson: “TAM India, a 50:50 Joint venture between Kantar Media and Nielsen, doesn’t comment on any litigation.”

    According to a report in Courthouse News Service and Entertainment News Digest (link: http://www.courthousenews.com/2012/07/30/48808.htm and http://www.entlawdigest.com/2012/07/30/1672.htm) :

    It seeks $580 million on 42 counts, including negligence, gross negligence, false representations, prima facie tort and violations of the FCPA and Dutch Corporate Governance Code. It claims that the Dutch Corporate Governance Code requires that Nielsen, a Netherlands-based company, act in the interests of all corporate “stakeholders.”

    The Defendants include five Kantar entities, TAM and 14 Nielsen group entities, Nielsen CEO David Calhoun and its directors James Atwood, Jr., Richard Bressler, Simon Brown, Michael Chae, Patrick Healy, James Kilts, Iain Leigh, Eliot Merrill, Alexander Navab, Robert Reib and Scott Schoen.

     

    [we’re unlikely to see any more updates on this, but we will update the story in case there are any]