MxMIndia

Category: MEDIA

  • Text of Star India CEO Uday Shankar's keynote address at the CII Big Picture Summit in New Delhi on October 29

    Uday Shankar @ CII summit: 100 billion dollar dream is worthy dying for

    Text of Star India CEO Uday Shankar’s keynote address at the CII Big Picture Summit in New Delhi on October 29

     

    Good morning. Mr. Amit Khanna, Mr Andy Kaplan, Ms Shabana, my dear friends Andy Bird, Ronnie, the remarkable team of CII that has organized this fabulous event, friends from media, ladies and gentlemen.

     

    I am truly privileged to have this opportunity to speak to this august gathering.

     

    What makes it even more of an honour is the theme of this summit. Because, over the years we have come together on multiple forums to engage on critical and interesting issues facing the industry – taking a specific aspect of it: be it content creation, content regulation or more recently digitalization.

     

    But what is special about this summit is that – first and foremost it is one of those rare occasions where the whole industry has come together to look at the big picture. What is even more important is not only that we trying to paint a big picture, but we are also trying to paint a bold picture because of the tangible goal that the industry has set for itself: “A 100 billion dollar media and entertainment industry”

     

    Let’s see where we are and how difficult it is to get there.

     

    We are a 15 billion dollar industry  today, which includes television, print, radio, digital media – growing at around 14% a year. This, by some accounts has been impressive – benefiting immensely from the tailwinds of GDP growth of the last decade.

     

    At this rate, we will still take 15 years to get to 100 billion dollars. Obviously we want to get there much faster.The question is: Why and how do we do that?

     

    I do not pretend to have a ready reckoner with all the answers – I hope that over the next two days some of the best minds from Indian and global media will exchange notes on this.

     

    The benefits of pursuing this dream are obvious to the industry– larger size should lead to bigger profits, bigger share holding value and more wealth. It is easy for the industry to get motivated about the goal.

     

    Today, at $15 bn as an industry, we are about half the size of Google – a 10-year-old company ($26 billion revenues)

     

    Let’s not even go that far: if the entire Indian media industry was a company, it would rank 7th or 8thin India!

     

    Media and industry is a globally growing industry – but our participation in that eco-system is zero and India is hardly factored into the global thought process of technology or content.

     

    In the late 90s – when I first went to IBC in Amsterdam I remember that the first thought that struck me as a young television professional was the complete lack of attention for Indian visitors. No matter how early you made the appointment – the people one got to meet were hardly ever the most senior people. They showed little patience or enthusiasm. I notice how – 15 years later, because India is now a fast growing market, there is a clear shift in their focus. I do not frequent the IBC – however, with striking regularity I get invitations from technology and product vendors.

     

    However, it still has not changed as much as it should Technology is still not developed keeping India in mind. They are still not keen on developing products for the country, which is not the deal with China or the United States for example.

     

    Similarly, even in programming – Hollywood studios ARE keen to sell to India. However, because it is not meaningful in size – there is no customization in any aspect: sales, product contracts or content – to suit the needs of the Indian buyer. Not being able to sell to India has no material impact on their top lines. As a result, we are not able to fully exploit the potential of that content. Taking this argument a bit further – Hollywood content is sold in two categories as premium and classic. That classification in India does not work. But explaining it to them continues to be a struggle and there is no third bucket for the Indian consumer. Not having the scale does not give us a top seat at the table – our ability to maneuver business discussions the way we would like tois severely constrained.

     

    The question naturally follows: How do we achieve this scale?

     

    To start with – we are drunk on our own volumes: largest number of newspapers in circulation, largest number of television viewers at 400 million, 100 million digital consumers. Digital in particular – is an indictment of our creative and strategic limitations – we have 600 million mobile screens and yet we do not have a unique content proposition for the medium.

     

    So, our ability to convert that into corresponding value is disappointing – of course some of that value will come through economic growth but there is nothing that stops us from creating more value out of our volume today.

     

    And do remember, even at these volumes our reach as a % of population is not spectacular: we still have 100 million households with no television, their time spent on it is abysmally low when compared to global standards, 350 million people read the newspaper – but that tells how many do not read!

     

    Scale brings with it not only value but also greater reach. One place to look for scale is to gaze outside India. Our friends in the pharma sector have shown how this possible: 50% of the pharma sector revenues come from outside of India. These are from developed markets like US, developing ones like Brazil and newer markets like Africa.

     

    Our media and entertainment industry serves – what is arguably the world’s toughest media market: catering to a diverse culture, language, value systems and sophistication of tastes. If a pan-Indian broadcaster acquires the expertise to speak to an audience in over 5 or 6 languages, why should it not allow us to go beyond the Indian diaspora?

     

    However, whether it catering to an audience beyond Indians or just scaling for the domestic market – we all know that it is not that simple.

     

    In television for example we will need lots more content and will come not only by scaling production but a fundamental transformation of the eco-system – resources, talent etc: all have to evolve dramatically. For example – the production infrastructure in Mumbai studio space, access to talent is creaking and is unable to keep pace with the demand. However, it is not a problem that the industry can solve in isolation – it requires intervention from municipal corporations, state government, central government and perhaps even the initiative and support from other states. Similarly, look at distribution – for years this industry has reeled under the impact of analog. Finally the needle has moved when the UPA Government understood the needs for digitalization and passed an act to enforce this. Again – we are seeing how important it is for all state Governments to actively participate in this endeavor. The nature of the business is such that it is wide-spread and far-reaching in its relevance and impact.

     

    For all of this to happen, the entire society – whose interest the Government is supposed to represent must help us in this.

     

    Usually, it is easy to make the case to the Government and the Politicians when the benefits to society are clear and immediate. However, if the benefits accrue over the long-term and inflict short-term pain – I am one of those who believe that this is a struggle to get them behind us. So it is even more critical for us to establish a clear case for a 100 billion dollar M&E industry.

     

    Two of the goals that all establishments are worried about are financial resources and jobs.

     

    The sheer scale of a $100 billion dollars can generate over 5 billion dollars in taxes (assumption: 15% EBIT; 30% tax rate). Let us look at what that means: it is more than half the current allocation for NREGA (8 billion). The Government has passed the Right to Education act and as part of that efforts on Sarva Siksha Abhayan have been scaled up.

     

    At a 100 billion dollars our tax revenues would have been able to fund the entire budget of Sarva Siksha Abhayan (5 billion) or the National Rural Health Mission (6 billion).Perhaps, outside the I&B ministry, the media and entertainment sector is not taken seriously in the economic agenda of the nation. In the best of times it is seen a vehicle of glitz and glamour and most of the times as a source of irritation. At 100 billion dollars the significance of the industry will be difficult to ignore or undermine.

     

    The other big benefit will be in driving employment. For example, today we directly employ atleast 80 people when we do a drama on Star Plus and obviously this can be much higher depending on the scale of the show. This is just direct employment – you can imagine the number of people directly and indirectly that can be employed by the M&E industry.

     

    The beauty of the Media and Entertainment is that it does not place massive demands on technical and educational infrastructure. Most of us are born with the creative skills and this can be honed with marginal investment. This is quite unlike creating a pool of doctors, engineers and software programmers.

     

    We all know about the college drop-outs who have gone on to create enduring businesses – be it Microsoft or Facebook. While maybe not at that scale, the number of drop-outs who get embraced by the M&E industry and go on to be successful is a story waiting to be told.

     

    So, whether it is the industry or society this is a goal worth pursuing.

    Before we embark on this journey – we need to achieve clarity of vision and consensus on that clarity.

    Until that clarity comes in we will not have the commitment to pursue it.

    I look forward to the next two days to discuss such ideas and many more, which this august gathering will bring – to challenge status quo and put us on a trajectory to a 100 billion dollars.

    100 billion dollars is a dream, but it is certainly one worth dying for.

     

  • The 2-day CII Media & Entertainment Summit saw the who's who take a close look at the critical role the sector plays in India

    Robust outlook for Indian M&E: CII Summit

    L to R: Uday Kumar Varma, I&B Secretary, Chandrajit Banerjee, DG, CII; Andy Kaplan, President, Worldwide Network, Sony Picture Television; Amit Khanna, Chairman, CII National Committee on M & E and Chairman, Reliance Entertainment; Uday Shankar, CEO, Star India and Ronnie Screwvala, MD, The Walt Disney Co

    By Ananya Saha

     

     

    CII Media and Entertainment Summit 2012, India – The Big Picture discussed critical issues such as cause and effect of market-driven approach in the media and entertainment (M&E) sector, censorship hurdles, and the roadmap for $100 billion Indian M&E industry. The two-day conference saw the who’s who of the sector take a close look at the critical role that M&E plays in India.

     

    “We are drunk on our own volumes: largest number of newspapers in circulation, largest number of television viewers at 400 million, 100 million digital consumers. Digital, in particular, is an indictment of our creative and strategic limitations – we have 600 million mobile screens and yet we do not have a unique content proposition for the medium,” Uday Shankar, CEO, Star India, said in his keynote address, adding, “Our ability to convert that into corresponding value is disappointing.”

     

    “Media and industry is a globally growing industry – but our participation in that eco-system is zero and India is hardly factored into the global thought process of technology or content,” he added. Similarly, on the domestic front, the industry is yet to fully unlock the potential of the vast Indian market.” The size of India’s Media and Entertainment industry, which includes television, print, radio, digital media, was pegged at $15 billion at the end of 2011. The industry is growing at around 14 percent a year. “At this rate, we will still take 15 years to get to $100 billion. Obviously, we want to get there much faster. The question is: Why and how do we do that?” Mr Shankar quipped.

     

    Ministry of Information and Broadcasting Secretary Uday Kumar Varma, Leader of the opposition in Rajya Sabha Arun Jaitley, The Walt Disney Co MD Ronnie Screwvala, Viacom 18 Media Pvt Ltd CEO Sudhanshu Vats, Sony Picture Television President for the worldwide network Andy Kaplan, News Corp Sr Executive VP David Hill, NDTV Group CEO and Executive Director Vikram Chandra, Times Television Network MD and CEO Sunil Lulla, Sony Entertainment Television CEO Man Jit Singh, Times Group CEO Ravi Dhariwal, Prasar Bharti CEO Jawahar Sircar, eminent journalists such as Nik Gowing, Vir Sanghvi, Vinod Mehta and Aroon Purie shared their views at the summit.

     

    Uday Kumar Varma, Secretary, MIB, recent decision of the government to allow 74 per cent FDI in DTH, IPTV, mobile TV etc. are some of the steps that have been taken in this direction and underscored that those steps would be game changers. He said that many positive steps would be taken in revamping the FM Radio to enhance its reach and content. The empowered Group of Ministers are looking into some of the grey areas in the auction of 839 new FM radio stations across over 290 towns and cities in the country. “We hope to complete the auction of the first tranche of the stations by the end of the financial year,” he added.

     

    Day 1 of the summit saw Arun Jaitley, Leader of the Opposition, Rajya Sabha make a scathing attack on trial by media and said that most often such debates are based on half- truths and imaginations. Nik Gowing, Presenter, BBC World News said, “Media is greatly influenced by technology and speed in which the information travels. Political leaders and corporations have to realize that to become a leader in the technology driven environs, where they would be put to scrutiny not necessarily by the media but also by public at large, through twitters and other social media, was an onerous task.” Vinod Mehta said, “What we require is blending good business practices with news collection and dissemination, which is a formidable task of media industry.” Ravi Dhariwal, CEO, Times Group, said that media is judged by its contemporary relevance and trust it builds with the general public.

     

    Broadband penetration to reach 600 mn by 2020
    Speaking on the panel for ‘The Game Changers: Taking M&E industry to $100 bn’, R Chandrasekhar, Secretary, Information Technology and Chairman Telecom Commission said the government is taking proactive steps for enhancing the broadband penetration in the country from the present level of 20 million to 600 million by 2020 so as to cover the entire breadth and length of the country.

    “The government is investing Rs 20,000 crore over the next few years for strengthening the broadband network in the country. In its wake, such massive investment will give a boost to the digitization, cloud-based services and convergence to reach out to the common man in the far flung areas,” he said. The government’s role, he stressed, would be that of a facilitator and the last mile movers would be cable and telecom service providers.

     

    Manjit Singh, CEO, Sony Entertainment Television maintained that advertisement and subscription income from media business should be at a 50:50 basis and a business model based on these parameters would help penetration of broadband, inflow of more FDI and the government would stand to gain from realization of more taxes. The ratio of TV advertisement to GDP in India is abysmally poor as compared to developed countries and hoped that the stress on subscription would give a sustainable and healthy revenue stream to the media business. Narayan Rao, Executive Vice-Chairperson, NDTV said, “For the ambitious target to reach 100 bn, the industry needs to recognise three things: advertisers need to recognise that as audiences have grown, and thus, rates also need to grow; the broadcasters need to get rid of carriage fees; and the broadcasters need to look at alternate sources o revenue, which can currently come only from subscription revenues.”

     

    TGBCL’s MD and CEO Sunil Lulla said the industry needs to dream a collective dream to reach the $100 bn mark. “The industry needs to collaborate, partner and compete for a healthier industry status,” he said. Smitha Jha, Leader, Entertainment & Media practice, PWC India, observed that the game changers in the media industry would be advertisement, subscription and infrastructure and policy framework. In India, she said that the consumer spends only $7 per month as subscription as against US$ 500 in the US. Also, to help industry to achieve the potential, infrastructure has to be toned up, such as rolling out of 3G and 4G coupled with strengthening broadband network.

     

    Policy Conundrum

    Rahul Khullar, Chairman, Telecom Regulatory Authority of India (TRAI) stressed on the need for a separate regulator for content and carriage. He also said that the Indian market should not be compared to Western markets and stressed on the fact that India is a price-sensitive market. Harit Nagpal, MD and CEO, Tata Sky pointed out, “We are most heavily taxed business in the industry. We pay close to 30-35 percent as taxes, exclusive of the import duty on set-top boxes.” Agreeing with Mr Nagpal, SN Sharma, CEO of Den Networks said, “Taxation is going through the roof, and ultimately consumers will have to bear the costs.”

     

    Anuj Gandhi, Group CEO, IndiaCast, opined, “As we progress with digitisation, it is important that the issue of carriage fees is sorted out. We need to get the ARPUs right to be on the path to reach $100 bn-industry.” The panel also pointed out how the policies in India have not found the regulation support. Vanita Kohli-Khandekar, Contributing Editor, Business Standard said that tax holidays can do wonders for stabilising the industry. She also pointed out how regulation is required in the areas of cross-media monopoly; how 50-60 percent of media buying is concentrated in the hands of one agency and the ownership of news media.

     

    In response to the worries voiced by the panel, Mr Khullar said that the regulator is aiming at bringing out a white paper on cross-media ownership, which will be done with prior consultation. He also said that as digitisation progresses, the industry should foresee and prepare on changing business models.

     

    Managing M&E in digital era

    As digitization takes last steps towards sunset date, issues related to convergence have been taking centre stage at various discussions and forums. The panel on convergence issues chaired Neeraj Roy, MD and CEO, Hungama Digital Media was of the view that consumption and monetising of content, global IT systems, infrastructure and policies that deal with convergence need to be developed to provide clarity to industry players as well as consumers.

     

    Vikram Chandra, Group CEO and ED, NDTV, said, “With convergence and real-time interactivity taking shape, the only question that remains to be answered is how do we monetise the properties.” Vijay Lazarus, President, IMI pointed out how in absence of policy regulations, music became the first victim of technology in the form of piracy. “But then knowing there was no turning back, the music industry also embraced technology,” Mr Lazarus pointed out.

     

    The panel agreed that innovation in convergence will result in monetisation.

     

    The last panel on Sports and Entertainment focused on whether sports broadcasting in India is only about cricket or is there an opportunity much beyond which lies untested and unexplored. “The government, corporations, media and civil society should come forward to support sports beyond cricket with a long term roadmap,” maintained Atul Singh, CEO, Coca Cola India. He also hinted that dependence on one form of sports is not the ideal approach since that would lead to unbalanced growth of sports in the country.

     

    Mr Singh cautioned the corporations not to look for immediate results and dividends from sponsored games other than cricket. David Hill, Senior Executive Vice President, New Corp said, “Sports is predominantly a middle-class indulgence and with India’s middle class touching one billion by 2025, sports will receive a lot of attention in the future.” Referring to the lack of corporate support in India, Harish Thawani, Executive Chairman, Nimbus Communications said that corporates allot adequate budgets for CSR and massive commitment for advertisements but hardly any when it comes to sports.

     

    While there is no doubt that the Indian M&E industry is seeing unprecedented growth, the question is whether the industry will be able to shed policy inhibitions and grow to the $100-billion-stage by 2016.

  • As if our cup of digitization woes wasn't already running over, now it'll overflow even more, writes A N Chorrea.

    The Anchor: 5 problems that you and I will face thanks to digitization

    By A N Chorrea

     

    #1 You need a fresh table for the set-top box:

     

    So you thought the fancy 165-cm Sony Bravia would look fantastic on the bare wall of your living room. Now, where you are going to keep the set-top box? Pain, huh?

     

    #2 Other paraphernalia for the box:

     

    Like a sexy little cover for the box so that dust doesn’t settle on it when not in use. Buy an all-in-one remote and if necessary get an additional remote laminated. Build an electricity point for the set-top box.

     

    #3 Keep tabs on packages:

     

    Until now it was the cable operator who decided what you saw. Well, kinda. But now with several packages, and a variety of new channels coming on board, get ready to be picking and changing channels and/or packages.

     

    #4 One more monthly payment to be made

     

    If your existing arrangement with the cablewallah allowed you to pay just once a year, now you may want to make it a monthly cycle, until you’ve decided what package to take.

     

    #5 More money

     

    Set-top boxes for all the help/assistants at home, office, the driver… and the building sweeper and watchman. Guess one of the suggestions that someone should’ve made to the government that is that investments in buying set-top boxes will get you tax exemption. This could be sizeable given the number of boxes you’ll be buying in the immediate future.

     

  • A strong push towards investment in relevant local content and newly emerging markets took centre stage on the first day of the CASBAA Convention 2012 in Hong Kong.

    Relevant content, fresh opportunities at CASBAA 2012

    By A Correspondent

     

    A strong push towards investment in relevant local content and newly emerging markets took centre stage on the first day of the CASBAA Convention 2012 in Hong Kong. Featuring global and Asian industry leaders, regulators, media personalities and technologists the conference line-up pinpointed key trends facing the industry today.

     

    “Creating relevant content is a huge focus,” said Gerhard Zeiler, President of Turner Broadcasting System International at the Talking TV session. Emmy and Golden Globe winner and Founder & Chairman of Electus Ben Silverman highlighted key innovations around local content production that are already occurring, while Ross Martin, EVP, Scratch/Viacom Media Networks noted that social media is being used to continue and further improve engagement. However, the first day speakers all agreed that content providers should not lose sight of the audience as “they are the bosses”.

     

    A concentration on local content for millennials is also creating opportunities in emerging South East Asian markets such as Myanmar, where the median age of the population is under 30-years-old, said Ye Htut, Myanmar’s Deputy Minister of Information. He said the Myanmar broadcast industry is opening up and would welcome foreign investment in pay-TV when a new regulatory framework is completed. He added that with over 100 ethnic minorities, his government is looking to the interests of diverse groups represented through local content.

     

    Diego Reck of Fox International Channels in Latin America highlighted the integration of a newly engaged audience commentary during live sports events, while Gautam Anand, Director, Content Partnerships, Asia-Pacific at Google pointed to massive increases in the use of social media. Meanwhile, Kenneth Lee, Director of Media Networks Technology, The Walt Disney Company, highlighted his company’s explorative efforts to insert advertising into the Watch Disney app.

     

    Monetising social media efforts spurred debate. Jonathan Ellis, CEO of TMS in Hong Kong, argued, “You should not drive people from a broadcast media into a social platform without understanding why. You need to own the social data that is being created and use it. That’s where the value lies.”

     

    Participants also explored the opportunities surrounding OTT. Sam Blackman, CEO, Elemental observed that OTT is now being used to enter markets where there is no other presence. However, Dennis Rose, VP, Asia-Pacific, Brightcove cautioned that complexity is not going to go away. Even so, all panelists agreed that OTT is a tool that can unleash enormous market potential, and if it not seized, will be left to enterprising pirates.

     

    Whether it is traditional media or social media, piracy was a key concern for all attendees. Andrew Wajs, CTO, Irdeto pointed out that tracking and monitoring is vital for combating hackers, who are becoming ever more creative. He added that for content in mobile devices, securing the device with secure software is crucial. “The idea is to make it as uncomfortable and inconvenient to view pirated content and drive viewers to legitimate sources.”

     

    At the opening ceremony for CASBAA 2012, Eliza Lee, the Director-General of Communications of the Office of the Communications Authority, noted, “The global communications industry is fast evolving, pushed by innovative technologies and the changing demands of consumers.” She added, “To cope with the challenges of convergence of telecommunications and broadcasting, the Communications Authority was formed early this year as a single unified regulatory body for the entire electronic communications sector.”

     

    The CASBAA Convention 2012 is supported by FOX International Channels, Turner, Eurosport, Dolby, A+E Networks, AMC/Sundance Channel Global, APT Satellite, ABS, AsiaSat, Bloomberg Television, Brightcove, Conax, Discovery Networks APAC, Disney Media Distribution, Elemental Technologies, Ericsson, euronews, Food Network Asia, France 24, HBO Asia, Intelsat, Invest Hong Kong, Irdeto, ITV, MEASAT, Movideo, NBA, NBCUniversal, now TV, Paul Weiss, Playboy Plus Entertainment, PwC, SES, Sony Pictures Television Networks, TBN Asia, ThinkAnalytics, Time Warner, True Visions, TV5MONDE, Verimatrix, Viacom International Media Networks, WarnerTV and YouTube.

     

    For a third year leading sponsor Create Hong Kong (CreateHK) has also shown its support for the CASBAA Convention by sponsoring a Community Outreach Programme. Complimentary passes have been offered to local SMEs in the TV sector and tertiary students of relevant courses to attend the event for networking and knowledge exchange. CreateHK is the dedicated office set up by the Hong Kong SAR Government to promote local creative industries.

     

     

  • The Internet Economy Watch Report for September 2012 indicates a marginal growth of 7 percent in online booking of air tickets as compared to last year.

    Online booking of air tickets registers 7% growth

    By A Correspondent

     

    The Internet Economy Watch Report for the month of September 2012, released by the Internet & Mobile Association of India (IAMAI) indicates a marginal growth of 7 percent in online booking of air tickets when compared with the numbers of corresponding month last year. Air tickets booked online in September 2012 were 1.55 million as compared to 1.46 million in September 2011. The growth rate is the lowest when compared with the numbers of the previous months of the current financial year. The online bookings on irctc.com witnessed y-o-y growth of 17 percent with 5.77 million online bookings in September 2012 as compared to 4.92 million in September 2011.

     

    Source: IAMAI/ Online Travel Portals

     

    According to the data captured from prominent e-tailing sites in the monthly tracker, the online user visit to mobile phone and book segment has increased by 17 percent and 27 percent respectively, when compared to the numbers of corresponding month last year. A significant increase has been registered in the online user visit to branded apparel segment. The number of hits has increased to 5.99 million in September 2012 from 4.62 million in September 2011. The online user visit to footwear segment increased from 3.94 million in September 2011 to 4.49 million in September 2012, a y-o-y increase of 14 percent.

     

    Source: IAMAI/e-Commerce sites

     

    In September 2012, the number of resume uploads on job portals and profile uploads on matrimonial sites has indicated a y-o-y growth of 6 percent and 13 percent respectively. While the number of resume uploads in September 2012 was 1.75 million as compared to 1.65 million in corresponding month last year, the number of profile upload on matrimonial websites was 1.18 million in September 2012 as compared to 1.04 million September 2011.

     

    Source: IAMAI/ Vertical Classifieds

     

    The monthly internet tracker by IAMAI is based on absolute numbers captured from various relevant sites, and encapsulates online usage for E-tailing, Online Travel and Vertical Classifieds.

     

  • With mandatory digitization effective today in Kolkata, Mumbai and New Delhi, a look at what it means for each stakeholder

    The Sun Rises on New Era of Digitization

     

     

    By A Correspondent

    Okay, there are the hiccups. The plea to push digitization in Chennai was successful with the Court extending the date to November 5. In Mumbai, the plea was rejected even as local cable operators are gathering in the afternoon to decide on the next course of action. They may even go in for an appeal to the Supreme Court.

    What the stakeholder body bosses say:

    Man Jit singh

    Man Jit Singh, President IBF and CEO, Multi Screen Media

    This has been the biggest step in the broadcast industry. Not only is digitization good for broadcasters as it will bring subscription revenues in line but will also enable us to launch new channels, the carriage fees will be lower; but it is also good for consumers. This is the chance for consumers to get different content, it is also a chance for them to get broadband connectivity, which will bring a great information revolution. It is great for MSOs as they will get fair revenues from customers after having invested in the boxes. FDI is allowed too, so the MSOs can look for investments. For LCOs, ARPUs will go up when they offer services like cable modems and broadband connectivity. Government will get more taxes. It is going to be a fantastic phase.

    Arvind Sharma

    Arvind Sharma, President AAAI and ASCI and chairman and CEO of India subcontinent, Leo Burnett

    Digitiation will be a big leap for everybody involved, either as an advertiser, as a businessman, as an agency. So all of the stakeholders are looking at the day with the hope that all will go well.


    Roop Sharma

    Roop Sharma, President, Cable Operators Federation of India

    We all were waiting for digitization. But i have mixed feelings for the day. We have not been able to deliver what we had promised the consumer. There is no transparency, the electronic bill system is not in place, and moreover, the required number of boxes have not been seeded. What can one say? Chennai has extended the deadline. Mumbai will now be moving to Supreme Court for the extension of deadline.

    In Kolkata, the opposition is kind-of state-sponsored with Chief Minister Mamata Banerjee objecting to the mandatory digitization and the impact it has on the poorest of poor.

    In Delhi, there were some objections raised, but they appeared to have fallen on deaf ears.

    The result: mandatory digitization in three metros is here. And at long last there is going to be some order in the broadcast business. One is not very sure whether those who are very elated about the move will be so in future. Because transparency comes with its own set of problems. Especially for those who have been used to the inefficiencies for far too long.

    See also:
    Shailesh Kapoor/TV Trail: Channel Brand: The Digitization RealityThe Anchor: 5 problems and that you and I will face thanks to digitization

     

    So, who gains and who loses by the digitization:

    Consumers: Will they gain? Yes and No. It’s great for those who can afford it, but for the lowest common denominator already burdened with rising salaries and falling incomes, it’s going to pinch.

    Broadcasters: Content-makers will now get the money they ought to get as they will know how many people are subscribed to their channel, but no longer will they be able to give the spiel of millions of viewers watching their channel without the relevant proof.  They will save some of the carriage fees paid to Multiple System Operators (MSOs)

    MSOs: Monies coming from carriage fees will take a beating, though it won’t vanish entirely as some revenues from placement etc can be made. Their incomes could rise with better reporting from the local cable operators.

    LCOs: While quality of content will mean greater number subscriptions to niche channels and hence more commissions, the overall revenues will reduce as the set-top boxes will mean zero unaccounted connections (unless of course there’s pilferage)

    Distribution Bouquets: MediaPro with Star and Zee channels in its fold will be the biggest gainer as will be IndiaCast with the Network18 and allied group channels. However, others smaller group but with key channels like, say, Times Now could also flex their muscles.

    Advertisers and Media Agencies: They will now have a better idea of the reach and may be able to negotiate harder, but there may be a few hiccups

    Hiccups there will be for all. The next few months – possibly till end-December – will see a state of uncertainty for stakeholders. The fight for mandatory digitization may have been won, but the battle has just begun.

  • Jaldi 5 with Vasant Gokhale on the ABP Group's recent digital offerings for non-resident Bengalis.

    Jaldi 5 with Vasant Gokhale, Head, Mobile Services, ABP

    Vasant Gokhale

    The Ananda Bazar Patrika Group recently announced its digital offerings for non-resident Bengalis. Though three months old, the platform is already gaining traction. MxM India caught up with Vasant Gokhale, Head, Mobile Services, ABP Pvt Ltd to know more.

     01. The digital offering is targeted at non-resident Bengalis. Is Indian market not ready for such platforms?

    We have plans to eventually reach to that point. The back-end plans are already at work. Also, we have our digital websites that are live currently in India. So, we have enough content here online for the resident Bengalis. We will launch the digital offering on same scale in India within this financial year.

    2. What are your subscription models?

    We have two subscription models. One is, standard that is offered for $5 per month and then we have exclusive premium content.

    03. How has been the response from advertisers?

    We do not have advertising options on the My Anandabazar Mobile App on iOS. Current focus is to increase paid subscriptions for overseas market. We already have over 1000 active subscribers MoM without spending a dime on marketing, and once we reach the critical numbers, advertising options can be looked at.

    04. What will be the marketing strategy?

    We will launch a robust marketing plan shortly. We have acquired the current subscriber base all on hearsay, and without spending a penny.

    5. When do you plan to break-even with the digital property?

    All I would like to say is that we are on track as far as investment and other targets are concerned.

     

    As told to Ananya Saha 

     

  • Dainik Bhaskar Group has declared the winners for the 'Crack the Case' competition, which drew competition from across the country and sectors

    EPGP from IIM-B wins Bhaskar’s ‘Crack the Case’

    By A Correspondent

     

    Winners_Suryanarayana Pemmaraju (L) and Vinod Unnikrishnan (R)

    The final round of ‘Crack the Case’ drew competition from across India and sectors with 2 teams from the industry (a team from IMRB & a cross team from Maxus & Cognition Media, India) and 3 teams from top B-Schools (IIMB and XLRI) competing on Dainik Bhaskar Group’s Maharashtra Success story a case study by IIM Bangalore. The 5 teams battled it out to present the best solution to the question, ‘Keeping in mind the fast paced growth and unique market penetration strategy of the Group, which market should Dainik Bhaskar Group enter next?’ The EPGP team from IIM Bangalore – Suryanarayana Pemmaraju and Vinod Unnikrishnan walked away with the Rs. 1,00,000 Prize.

     

    Sharing their views on the experience, the winning team, EPGP, IIM Bangalore said, “The overall experience has been amazing. First it gave us an opportunity to work with a near live case and understand more about the print industry. Had it not been for this contest, we would probably never have known of Dainik Bhaskar Group’s success story and their out of the box approach of looking at a problem. Winning a pan-India contest organized by a leading newspaper such as Dainik Bhaskar is a matter of pride and achievement. It would be interesting to track what the group does in the near future and understand our contribution.”

     

    Suryanarayana Pemmaraju has a rich 8 year experience in software product development and project management with leading IT organizations such as TCS and Dell International & Vinod Unnikrishnan is a veteran engineering manager, boasting of a decade long experience across different industries and companies such as Schneider -Electric & Whirlpool.

     

    The judging panel included Ravi Rao, Leader, South Asia, Mindshare and Seema Gupta, Faculty Marketing, IIM Bangalore – in addition to Dainik Bhaskar Group’s Senior Management.

     

    The judges were looking for a solution backed strong logic and analysis. Commenting on the experience, Ravi Rao, Leader – South Asia, Mindshare said, “The teams went beyond the case, displaying an incredible level of secondary research. This forum provided a different perspective towards looking at the case. Every presentation was unique in its approach irrespective of the market they were recommending. The strategy, analysis by each group had a different flavor to their approach.”

     

    Seema Gupta, Faculty Marketing, IIM Bangalore who is the author of the case study said, “The case contest brought together academia, media and marketing research industry together. I was impressed by the analytical rigour of the teams. The teams combined quantitative analysis with qualitative judgment leading to divergent solutions which made the contest extremely interesting. The diligence displayed by the teams for an extracurricular intellectual exercise is admirable.”

     

    Commenting on the contest, Sanjeev Kotnala, VP, Dainik Bhaskar Group said, “The enthusiasm and dedication shown by the teams was commendable. We were overwhelmed by the quantity and quality of the total number of entries received. Shortlisting them and further bringing out the winner was a tough task for the judges. This was a unique experience for the Brand too since this was the first time that we have invited inputs beyond internal research teams.”

     

  • As far as luring people to click on harmful links goes, Katrina Kaif and Kareena Kapoor come second and third respectively, the anti-virus biggie's research reveals

    Sunny Leone the most dangerous celeb in Indian cyberspace, finds McAfee

    By A Correspondent

     

    Sunny Leone emerged as the ‘most dangerous celebrity’ in Indian cyberspace this year, followed by Katrina Kaif; according to security technology company McAfee.  For the sixth year in a row, McAfee researched popular culture’s most famous people, finding the riskiest celebrity sportsmen, actors and politicians across the web to reveal the 2012 rendition of ‘Most Dangerous Celebrity’ research.  In the India ranking this year, Sunny Leone displaced Katrina Kaif, who owned this title in the 2011 edition of this annual research.

     

    Commenting on the findings of the report, Lubna Markar, Sr. Marketing Manager India & South Asia, McAfee, said, “Cyber criminals continue to leverage top celebrities to lure people to websites with malicious software.  This year too, we saw cyber crooks leveraging Bollywood stars whereby the maximum number of malicious software laden sites pertained to Sunny Leone. This testifies her top position as the most dangerous celebrity in Indian cyberspace in 2012.”

     

    Cyber criminals follow the latest trends, often using the names of popular celebrities to lure people to malicious sites designed to steal passwords and personal information. Fans looking for results on search engines using strings such as ‘name of celebrity’ combined with words like ‘free downloads’, ‘hot pictures’, ‘screen savers’, and ‘videos’ are at risk of running themselves into such sites. This year, searching for a celebrity name with “sex videos” and “free downloads” as part of the search term resulted in the highest number of risky sites.

     

    The study for ‘Most Dangerous Celebrity’ used the McAfee SiteAdvisor site rating which indicates the sites that are risky to search for celebrity names on the web and calculate an overall risk percentage. The top 10 celebrities in India from this year’s study with the highest risk percentages are:

     

    Rank Celebrity
    1 Sunny Leone -This sexy Canadian model/actress who made headlines with her presence in the celebrity reality show Bigg Boss, ranks first with 9.95% chances of luring people into clicking on malicious links.
    2 Katrina Kaif – India’s ‘chikni chameli’  was the most dangerous Indian celebrity of 2011, but has slipped down to the 2nd position this year with a risk percentile of 8.25%
    3 Kareena Kapoor – The 3rd Most Dangerous Celebrity and winner of six film fare awards has a 6.67% possibility of making users fall into a trap of malware laden websites.
    4 Priyanka Chopra – This former Miss World who has been the reigning queen of Bollywood occupies the 4th position on the Most Dangerous Celebrities list with a risk percentile of 6.5%.
    5 Bipasha Basu – With Raaz 3, this Bengali bombshell has moved up the ranking from 8th in 2011 to the 5th position in 2012. She has a 5.58% percentile of leading users to a malicious site.
    6 Vidya Balan- After her ‘Dirty Picture’, Vidya Balan has a 5.33 % chance of leading users to malicious sites. The versatile Indian actress has marked her presence even in the cyber space.
    7 Deepika Padukone – This sultry actress of ‘Cocktail’ fame, was the  2nd most dangerous celebrity in the year 2011, but has plummeted to 7th  position this year, with a 4.92% chance of being led to a malicious website.
    8 Salman Khan – One of the most sought after stars in Bollywood, Salman Khan has redefined the trends of the Hindi film industry with his roles in movies such as Dabangg and Ek Tha Tiger. With a risk percentile of 4.83%, he is on the eighth position in our Most Dangerous Celebrities ranking.
    9 Aishwarya Rai Bachchan – Touted as ‘the most beautiful woman in the world’, Aishwarya Rai Bachchan, is the ninth most dangerous celebrity in India with a risk percentile of 4.58%
    10 Poonam Pandey – The Kingfisher calendar girl who was also amongst the top 8 contestants in ‘Gladrags 2010’, has a risk percentile of 4.25% and  is the tenth most dangerous celebrity

     

     

     

     

  • Looking to the future and thinking ahead of the curve are key to monetizing your mobile platform, says Mark Challinor.

    The Anchor: 5 ways of making money from the mobile platform

    By Mark Challinor

     

    #1 Work out where your readers are going to be in the future. The eyeballs should decide where the advertisers go. Monetize the space accordingly.

     

    #2 Think of advertisers and readers jointly. The content that they value will help develop content accordingly on various platforms whether it is mobile or tablet.

     

    #3 Look at all the new technologies that are coming in, such as augmented reality, QR codes, mobile payments. Get the right blend of technologies to work with the audiences.

     

    #4 Bundle all the digital subscriptions to drive home more revenues, and give more opportunities to the advertisers.

     

    #5 Experiment and research to work out the digital model according to the market you operate in. Only trial-and-error can help you decide on the right model.

     

    Mark Challinor is Director of Mobile Platforms, Telegraph Media Group, London

     

  • Founder-President of the Cable Operators Federation of India responds to our questions hours before the scheduled sunset hour

    Jaldi 5 with Roop Sharma: All set for digitization!?

    Roop Sharma

    It’s the day of reckoning for the Indian media sector as mandatory digitization is scheduled to happen in the four metros of Chennai, Kolkata, Mumbai and New Delhi. While there are various stakeholders, the role of the local cable operators (LCOs) is most critical for the move to be successful. Over the last few weeks, LCOs have been exceedingly vocal on the problems with digitization move. MxMIndia spoke to Roop Sharma, founder and president of the Cable Operators Federation of India on the morning of October 31…

     

    01.   So the sun is finally going to set on analogue transmission in the four metros today?

    Yes, this is what looks like considering the attitude of the government.

    Don’t you think some teething troubles would exist even if there was 100% set-top box installation?

    Firstly, everyone including the Ministry knows that seeding of STBs is not 100%. So many consumers would be having a dark day if analogue is switched off tonight. Secondly, consumer choice has not been asked and fed into the SMS systems of the MSOs. Ministry press release says that this would be done in the next 15 days. I doubt if that is possible to collect and feed the data of about 10 million subs in such a situation. Any way, the Ministry’s job will finish after they give another release patting their own back for a good job done. It damn cares for what the consumers go through. I expect a chaotic situation for another two to three months when people come to terms with what has happened.

    Do you still have reservations about whether it will work?

    I have never suspected working of the technology and always favoured digitalisatioin.  However, I do suspect the intention of the government behind the whole exercise. It appears that it is being pressurized by some external force otherwise government would have remembered its social, economical and political responsibility while implementing a new technology, forcing down the throat of the masses in the name of doing good.

    You check the experience in rest of the world. No government has ever mandated digitization in a private cable TV industry anywhere in the world. In the US, Europe, South Africa, Australia and in many other countries, they digitalized terrestrial television services given free to the masses because it frees lot of spectrum that can be used for new telecom services. While doing this, they ensured that till the last customer is given a digital STB, no analog switch off takes place. Not only this, they offered free STBs to millions or gave a subsidy to buy an STB for each TV set.

    India is not so rich. It could have let analogue exist for the poor masses or provided an alternative, digitizing the free terrestrial services of Doordarshan for them. Don’t forget it is cable TV that made a information and knowledge based society in India and not mobile communications. Real globalisation started with cable TV revolution in India in early nineties.

     

    02.   If the government turns a blind eye to data pilferage to non-digitised subscribers for a few months, LCOs and MSOs should not have any problems?

    Let’s not talk about pilferage of data. Even in the US there is 15% accepted piracy. Has the government stopped pilferage of food grains from its godowns, tax avoidance or corruption in the big industries and politics? However, government should have ensured that every existing customer is enabled to receive digital service and afford the service. Ministry is working like Gestapo as if it is a question of life and death for the nation.

     

    03.   If LCOs don’t get proactive, you’ll lose customers to DTH, as there are some attractive schemes on offer?

    No, this cannot happen. Don’t forget that DTH existed since 2003 in India. If the service was affordable and so good, cable TV would have lost all its connections to it. This has not happened in the last eight years. It will not happen now also. DTH gains are only in cable dark areas or far flung isolated areas. This is the main reason that Ministry is so proactive in making Cable TV more costly than DTH so that consumers are forced to shift to DTH.

    For your information, there is no transparency on DTH in spite of it being a fully digital service. All their content deals are done not based on the actual consumer consumption but lump some deals. Consumers do not get their choice. To get your choice on DTH, you shell out not less than Rs 400 per month. Government is befooling the masses to help a few large media groups who enjoy monopolies in the media markets through their numerous TV channels, This was very evident from the ads given by the government, broadcasters and DTH companies on TV and print media. They had a threatening and scary tone to terrorise the consumers rather than convince them. Otherwise, why should the ads tell the cable TV subscribers to approach DTH operators when the law is made to digitalise cable TV.

    If you ask me, this law will prove a death knell for all small players, both cable operators and broadcasters.

     

    04.   Is there fair clarity on the subscription pack tariff and how much LCOs will earn in the new regime?

    No, there is no clarity so far. Many popular channels are missing from packages offered as well as a-la-carte offerings. Consumers are clueless till now.

     

    05.   As owners of the all-important last mile, your role in this gamechanging move is critical. But there are many who think that cable operators have suddenly started creating obstacles to delay digitization. Why this sudden reluctance?

    We appraised the government what is the true situation on the ground. However, since that was against their mindset, they started ignoring us. In fact, they started having separate meetings with broadcasters and MSOs where cable operators were not made to participate.

    Your critics say that LCOs have realized that their income is going to take a beating… legimately with margins and because digital transmission will require reporting correct subscriber numbers

    It is not a question of dwindling income, what is disturbing to the cable operators is that government has made a law to force LCOs to hand over their years old family business to the big media houses.

     

  • Digital can co-exist and support the print format, say speakers at the INMA Digital Innovation Summit

    Print-Digital Bhai-Bhai!

     

    By Ananya Saha

     

    Print readership is declining the world over. And digital subscribers are rising. Does this mean that the digital medium would lead to closing down of print editions? Not according to the speakers and attendees at that The Digital Innovation Summit 2012 by INMA.

     

    Yasmin Namini

    While Newsweek made a smart move by announcing its move to the web-only space, the news print industry is taking it slow and steady. Yasmin Namini, Senior VP – Marketing and Circulation and GM, Reader Applications, The New York Times pointed out how NYT has been gaining readers with their innovative paid digital content, such as, repeated payment gateways screen and 10-articles-free-per-month-limit after which subscription is necessary. NT registered 56.6 lakh subscribers till Q3 of 2012. She said that NYT has been using cross-bundling approach to optimise profitability.

     

    Mark Challinor

    Mark Challinor, Director of Mobile Platforms, Telegraph Media Group,Londonwas upbeat about the usage of personal mobile devices and iPads. He said, “There are more iPhones sold in the world (4.6 seconds) than babies born in the world (4.2 seconds). This gives us a clear idea of the future. Today’s 2-5-year-olds learn to operate the iPhone and iPad much before they learn to tie shoelaces.” He supported the fact that remains important, and the future of newspapers depends on reinvention of news industry.

     

    Indian newspapers too are smart enough to invest in their digital properties to receive huge dividends in the future. Earl J Wilkinson, Executive Director and CEO, INMA shared smart bets forIndia, “Make consumer pay more, now and create digital company outside your current company, in case the existing structures do not support digitalisation and be willing to cannibalize yourself.” He also cautioned against making digital an excuse to stop investing in print.

     

    vasant-gokhale

    Vasant Gokhale, Head, Mobile Services, ABP Pvt Ltd shared the mobile strategy that his company had adapted for the non-resident Bengalis. With an aspiration to reach out to wider Bengali audience settled out of East of India, Ananda Bazaar Patrika started its paid digital content three months ago targeting only non-resident Bengalis. The standard service of $5 per month and exclusive packages were launched to create a subscriber base around Durga Puja. Mr Gokhale shared “We have been growing 30% month-on-month, without spending a penny on marketing. The growing base is the result of our unique Bengali content and offering.”

     

    Bharat Gupta

    Bharat Gupta, Executive President – Marketing, Jagran Prakashan Ltd said, “With our unique content mix, out Hindi website has been gaining more traffic. We find Facebook very helpful in engaging our users, targeting new demographic areas and making headlines of the print publication viral.” He added that the main focus for his publication on social media was “not to gather the ‘likes’ rather get spoken about on social media.” Puneet Gupt, VP and Head of TOI.com shared how The Times of India digital story has seen growth thanks to engagement, rewards and response to consumer tastes.

     

    Grzegorz Piechota

    While Grzegorz Piechota, News Editor, Gazeta Wyborcza, Poland shared how the future of journalism and communities in digital age depends on campaigning and bringing the society together through causes; Marcelo Benez, Advertising Director of Folha de S Paulo, Brazil talked about where digital solution fit in the multi-media advertising mix. According to him, digital and print will co-exist in the future and help with the growth of each other. The group recently launched a magazine exclusively for Tablets, called Fohla 10 that can be consumed through various digital devices.

     

     

    Pit Gottschalk

    Mr Benez noted, “Of the total advertising pie in the country, television still claims the maximum share of 64.8%, newspaper follows with 11.7% and internet gets 5.2% of this ad pie.” Thus, to get maximum benefit, he advocated that a news company should be able to deliver their content on all platforms. He also said that the news company should engage advertisers not only through content but multi-platform special projects as well. Concurring with his thoughts, Pit Gottschalk, Director – Content Management, Axel Springer,Germany, said that news companies need to integrate digital as much as in their companies.

     

    Talking about his brand, Bild, Mr Gottschalk said, “Our digitisation strategy focussed on our three strengths: content, classifieds and marketing. In 2004, we defined our core strategy and created portfolio of market leaders in various geographies corresponding with our core strengths.” He further added that Bild used the classic newspaper strategies to monetise, and “we have reach 47.49 million readers everyday from 12 million few years back.” Bild’s goal of generating 50% of all income digitally has been reached, according to Mr Gottschalk.

     

    The one-day conference ended on high note with speakers agreeing coherently on the fact that opportunity to gain advertisers and readers will arise from print and digital integration. While it might be a long-term strategy for India given the fact that cover price of printed newspapers is so less but this is just the right time to get digital.

     

    Imaging : Rafiq