Category: MEDIA

  • Billon Dollar Bansals

     

    By Radhika P Nair

     

    It was a 10,000-a-month allowance from their parents for almost 18 months that helped Sachin Bansal and Binny Bansal launch an e-commerce website retailing books in October 2007. Today, the near-20% stake they hold, along with the top management, in Flipkart is valued at almost Rs 2,000 crore.

     

    Sachin Bansal

    Sachin Bansal, the chief executive of Bengaluru-based Flipkart, says he has a knack for underestimation. That is exactly what happened in March 2011 when he and Binny Bansal, who are not related to each other, announced they would reach the $1-billion (Rs 6,100-crore) sales mark in 2015. Last week, the site, which now sells everything from books to electronics, apparel and jewellery, reached the milestone, a full year ahead of the target.

     

     

    Flipkart, Lenskart, Myntra & Snapdeal: All have Bansals at the helm

     

    By Biswarup Gooptu & Harsimran Julka

     

    Even a decade ago, the name “Bansal” would have brought in images of coaching classes in Rajasthan’s Kota, but today it is the common factor binding the who’s who of India’s fledgling e-commerce sector.

     

    Five young men who answer to that name have emerged as trailblazers of Indian e-commerce, taking on global biggies like Amazon and eBay for top honours in the country’s exploding market for online retail.

     

    Online marketplaces Flipkart and Snapdeal, apparel retailer Myntra and eyewear retailer LensKart all have Bansals at the helm. Such is their clout that they account for nearly Rs 10,000 crore of the total online retail pie of about $2 billion.

     

    But their adeptness at trade and commerce is not a state secret. As a sub-sect of the Aggarwal community, the Bansals are known for running a tight ship when it comes to business and entrepreneurship.

     

    “We (Bansals) have the math, finance and data skills that are extremely important for e-commerce,” said Rohit Bansal who teamed up with schoolmate and Wharton alumnus Kunal Bahl to set up online marketplace Snapdeal in 2010.

     

    The Bansals of the new economy also sport degrees from IIT and IIMs. The five Bansals with their four companies – Flipkart, Myntra, Snapdeal and LensKart – set up shop within the last seven years and control about 85% of India’s entire e-tailing industry.

     

    But they have to contend with the might of $75-billion (Rs 4.5 lakh crore) Amazon, which entered India last year and is investing heavily.

     

    Heading the fightback are Sachin Bansal, 32, and Binny Bansal, 31- founders of Bengaluru-based Flipkart – who met each other while studying at IIT-Delhi. Their company today generates about Rs 6,100 crore in sales, half the industry total.Flipkart is also the biggest challenge for Amazon, a company where both the Bansals honed their skills before setting up on their own in 2007. Coming second is Snapdeal, whose Rohit Bansal, 31, graduated ahead of Sachin and Binny from IIT Delhi.

     

    “My ancestors from my paternal and maternal sides have all been businessmen,” said Rohit Bansal, who is from Malout, a small town in Punjab, just four hours from Chandigarh where the Bansals from Flipkart grew up.

     

    Snapdeal’s turnover is now half of Flipkart, and it is expected to cross the $1 billion mark next year. The Bansals are making a mark not just in horizontal marketplaces, but also single-category retail. Bengaluru-based Myntra Designs, founded by another IITian Mukesh Bansal, is giving stiff competition to Flipkart in apparel, one of the highest-margin categories, where profits range from 30 to 50 percent.

     

    “It has come full circle with me getting in fashion retail online,” said Mukesh Bansal, CEO at Myntra, who hails from Haridwar. His father had opted for a public sector job over joining the family business — ironically, clothes trading. “No family influence made me think of entrepreneurship. But the startup bug bit me in Silicon Valley,” said Myntra’s Bansal, 38, who moved to India to start Myntra in 2007. His venture is targeting sales of Rs 1,500 crore next fiscal from apparel sales, the largest in its category.

     

    LensKart, founded by another Peyush Bansal, 30, is considering selling his other portals such as WatchKart, BagsKart and JewelKart to a horizontal player at the ‘right price’ to focus on the eyewear market. “My parents didn’t understand while I was starting up. But they came around later. You have to understand that they are products of their generation,” said Bansal, who is targeting revenue of Rs 100 crore from LensKart next fiscal.

     

    RBI Chair Professor for Economics & Social Sciences at IIM Bengaluru Charan Singh says that a community’s dominance over a certain trade is a factor of its social interactions. “It can be likened to the Jewish community in the US which continues to hold top posts in US banking and technology industry.” Ashish Jhalani, head of retail advisory firm eTailing India, agrees. “Certain communities in India do encourage entrepreneurship. The Bansals and Aggarwals have definitely dominated businesses in India, particularly retail trading, for centuries.”

     

    (With inputs from Radhika P Nair)

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

    “To say billion-dollar in 2011 was crazy when we were doing a $10 million (Rs 61 crore) run rate,” says Sachin, 32, in his first interview after the firm achieved the sales target. “It was just a belief.”

     

    Sachin, like his co-founder, grew up in Chandigarh. That is not the only coincidence. Both went to IIT-Delhi and worked at different companies for about a year before ending up in the same team at Amazon. It was during this stint that the two decided to start up.

     

    The duo pooled in Rs 2 lakh each and with two computers launched the site from their two-bedroom apartment in Koramangala, a primarily residential locality in Bengaluru where the company now has multiple offices. For 10 days, the site did not see a single sale and then a customer from Andhra Pradesh placed the first order for the book ‘Leaving Microsoft to Change the World’ by John Wood.

     

    “We were not thinking about numbers then, but we knew something big can be built out of ecommerce,” says Binny. The two co-founders, who have a tendency to finish each other’s sentences in conversations, are close friends. What has helped maintain the bond through the ups-and-downs of entrepreneurship? “By fighting every day,” says Binny, 31, as the two burst out laughing. “But seriously, it is important to know what the other guy is thinking. That becomes very important as the message and the thinking become consistent. Communication is key.”

     

    The two are demanding bosses, say their employees. “Both have high expectations, but that raises our bar. That makes working with them rewarding as well,” says Amod Malviya, head of engineering at Flipkart. He says the Bansals have complementary personalities. While Binny is analytical and driven by logic, Sachin is more instinctive and is driven by emotion and passion, says Malviya, who joined the company in 2010 as a senior manager.

     

    Employees are also impressed by the simplicity the duo has managed to retain. As they live close to work, both walk to office. They also fly and stay budget while travelling and eat with other employees whenever possible. “They are very much in the Azim Premji mould and shy away from ostentation,” says an employee, who did not want to be identified.

     

    Experts say the success of Flipkart can be chalked down to the founders’ attitude. “The two have the right attitude. They are cocky and confident, and along with that they have the ability to execute,” says Arvind Singhal, chairman of retail consultancy Technopak. This attitude has helped them deal with the ever-shifting baselines in Indian ecommerce.

     

    After raising about $190 million (over Rs 1,150 crore) until 2012 from Tiger Global and Accel Partners, industry insiders had begun questioning the viability of the business, which was burning about 50 crore of cash each month. In 2012, the company took action, by tightening its employee base, using more technology to cut costs and shutting down its music downloads category, which was not scaling up. More importantly Flipkart, which started out as a direct seller of goods, changed to an asset-light marketplace model where multiple merchants, along with the company’s own WS Retail, sell to customers on the site.

     

    In 2013, the company raised $360 million (about Rs 2,200 crore) in two tranches, primarily from South African Internet major Naspers at a whopping valuation of $1.6 billion (Rs 9,772 crore). At the time, Sachin termed the cash infusion as a “great validation” and one which refuted the scepticism about his company in particular and Indian ecommerce in general.

     

    Supam Maheshwari, founder of online babycare site Firstcry, says Sachin and Binny Bansal managed to find early investors who kept backing them. “They executed well, especially in logistics and warehouse, and did not lose focus,” says Supam. “But they have had to spend a lot to reach the billion-dollar mark.”

     

    Flipkart’s sales milestone could also send out a signal to international players that the Indian ecommerce market is mature enough for them to enter, says Maheshwari. One such player could be Alibaba, which only has its business-to-business portal at present in the country.

     

    Comparisons with Alibaba’s Jack Ma are inevitable. Jack too started out from a small apartment in China’s Hangzhou in 1999.

     

    Jack diversified into payments, cloud computing and multiple ecommerce models. Bansals have made their intentions to diversify clear and have already done so by opening up their online payments solution and logistics for use by other Internet companies.

     

    Jack has, however, already beaten Amazon in China. Alibaba expects to triple the volume of transactions to $490 billion (almost Rs 30 lakh crore) in 2016. For Flipkart, the battle has just begun. Peyush Bansal, founder of Delhi-based eyewear e-tailer Lenskart, says competition will intensify between the large multi-category portals. Amazon, which entered the Indian market a little over six months ago, has rapidly expanded into 18 categories of products and has been busy setting up its logistics and warehouse network. Snapdeal, which is targeting $1 billion in sales next year, recently raised a further 830 crore from investors led by eBay. “The site that would come out on top could be the one with the deepest pockets or the one with the best economic efficiencies,” said Peyush Bansal.

     

    Technopak’s Arvind says Flipkart, which employs about 10,000 people, will have to continue to maintain its lead in technology, customer experience, supply chain management and consumer logistics to hold onto leadership.

     

    “It is like a three-hour movie where just the first 30 minutes are over; the plot is still unfolding,” says Arvind.

     

    Flipkart, which has over 1,000 sellers on its platform, is now shifting focus towards scale with intelligence, which will lead its mobile commerce drive. Sachin believes mobile will revolutionise ecommerce and Internet businesses. “My four-year-old son does not even understand keyboard. He expects the television to also be a touchscreen device,” says Sachin, who expects Flipkart to become a mobile commerce platform in the near future with features customised to individual users. “The next six-and-a-half years are going to be even more exciting.”

     

    (With inputs from Biswarup Gooptu and Harsimran Julka)

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Vir Sanghvi stars in NewsX’s new line-up and channel packaging

    By A Correspondent

     

    After having made a quantum leap after being acquired by Kartikeya Sharma’s iTV Network, NewsX has unveiled a new look. Youthful colors (blue and red) and new fonts adorn the channel as it gears up for the general elections.

     

    “The new look is in line with the channel’s profile, which caters to the young, affluent and urban viewers within the SEC AB category in the 25-44 age group,” notes a communiqué.

     

    Speaking on the occasion, Mr Sharma, Managing Director of the iTV Network, said: “Over the last few months, NewsX has become the home of breaking news, in-depth coverage, analysis and hardcore news reporting from the ground and this is a significant new phase to build our growth story.”

     

    Along with the look-and-feel, joining the line-up of well-known presenters is Vir Sanghvi who will present a show called ‘Ideas that shaped Indian Democracy’. This is in addition to ‘Decode India with MJ Akbar’ which is already on air.

     

    Added R K Arora, CEO, iTV Network: “Our success in the recent times only reinforces our belief in ‘News not Noise’. We are glad that our strategies have resulted in unparalleled success for the channel. Our constant endeavour is to produce and present news in the most engaging manner”.

     

  • Watch out, TVwallahs. P&G, Coke eyeing mobile video streaming for effective & cheaper advertising

    By Deepali Gupta

     

    Procter & Gamble and Coca-Cola are considering launching video channels over mobile phones to deliver branded content and advertisements directly to consumers in India, because it is cheaper than running ads on television and easier to measure the impact. The launch of third- and fourth generation mobile technology is making this possible and more affordable for advertisers, allowing them to sidestep, at least partially, the traditional mass media.

     

    Airing ads over telecommunication networks will also allow the companies to know who is watching their ads, something that is difficult to measure in TV advertisements.

     

    P&G and Coca-Cola, two of the biggest advertisers globally, are in preliminary discussions with India’s top telecom operators to start their own streaming video channels which consumers could access free of charge, three people familiar with the talks said. Another executive at one of the two consumer-goods companies said it was too early to say if his company would launch such a channel. “We have just had a meeting with the telecom operators, that’s it. There is no way to say whether this will happen or if it does when,” this person said.

     

    Initially, the brands may make their programmes available to customers of the nation’s top two mobile operators, Bharti Airtel and Vodafone India, that roughly account for 60 per cent of the subscribers across India, said one of the three people cited above. Bharti Airtel and Vodafone did not respond to emails seeking comment. P&G and Coca-Cola declined to comment.

     

    The talks come close on the heels of Hindustan Unilever launching a dedicated radio station on mobile phone in Bihar which has already acquired more than five million subscribers. P&G and Coca-Cola are also encouraged by the response to their existing online video content.

     

    Beverages-maker Coca-Cola has branded content such as the Coke Studio musical performance which receives lot of hits on You Tube, one of the people said. “We can push that content to users on their mobile phones,” this person said, adding that the channels would also carry company or brand logo through all shows which will be interspersed with advertisements. “It is cheaper than running campaigns on national television.”

     

    There is huge demand for mobile video content. Bharti Airtel’s Re 1 per video offer had 22 million hits within the first two months of its launch in May 2013, with nearly a quarter of them by first-time data users, according to data released by the company. Much of the content was Bollywood or fashion. As much as 80 per cent of that was accessed on feature phones – phones that can access Internet but are cheaper than smartphones – and nearly half in rural, content-starved markets. “Now imagine this is free to access,” said one of them, referring to the video channels these companies are considering. “I think there would be much more viewership.”

     

    However, the concept is still in its inception, added another. It involves a content aggregator creating the channel, the brand buying bulk data and an operator pushing the site to data-enabled phones. Offering this service requires the operator to enable data connections also on phones that don’t subscribe to data service and allow free connectivity as long as the device accesses merely the streaming channel.

     

    For telecom operators, offering free programmes will likely help attract voice consumers to data, and once they get hooked, the companies can sell services outside the free channel. According to analyst estimates, India has around 400 million phones that can use Internet or data services, such as viewing streaming video. However, only around 140 million actively connect to the Internet.

     

    Smartphone maker BlackBerry too has spoken of monetising its dedicated channels that brands like Café Coffee Day, Mercedes-Benz and even some political parties such as the Bharatiya Janata Party and Aam Aadmi Party use to connect with Blackberry Messenger customers. The channels started by the brands involve posting text and pictures that are shared by followers accumulated through invites.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Conde Nast unveils travel-friendly digital offering

    By a correspondent

     

    Condé Nast Traveller India has unveiled its digital version via cntraveller.in. The portal is positioned as a one-stop destination and resource for the digital-savvy Indian traveller, whether they are looking for travel within India or abroad.

     

    The revamped website comes with a slew of brand new features, including being ‘device-responsive’, that is optimized for browsing on PC, laptop, tablet or mobile; updated city guides boasting a new Insider’s section for the ultimate tips from locals in-the-know; daily news and deals; interactive toolbars where travellers can share stories, photographs, guides and advice on Facebook, Twitter, Pinterest and more.

     

    Commenting on the new website, Divia Thani Daswani, Editor, Condé Nast Traveller India, said, “Travel and technology are inseparable. Until now, the tech-savvy Indian audience has visited travel websites only to book tickets or research trips. Now, for the first time, they can experience and engage with high-quality content, specifically created for the Indian traveller. Whether you’re planning your vacation or looking to make the most of a business trip-or simply looking for some armchair travel, www.cntraveller.in is the new destination for anyone with a love of travel. Theme-based content that is updated regularly, expert tips and timely news will ensure that Condé Nast Traveller India continues to be the Last Word in Travel, even in its digital avatar. Remember; go here before you go anywhere.”

     

    The new cntraveller.in launches with ‘The Travel Bucket List’ that captures the bucket lists of 20 varied and well-travelled personalities with an aim to inspire one and all. From artist Bose Krishnamachari’s suggestions for an arty holiday, to Fatima Bhutto’s list of the most beautiful cities your embassy may warn you against visiting, the Bucket Lists are showcased in exciting ways-be it in the form of features, stunning visuals or slideshows. Other contributors include Masterchef’s Matt Preston, Suhel Seth, CNN’s Richard Quest, actress Parineeti Chopra, photographer Steve McCurry, and singer Monica Dogra among others.

     

  • Trendspotters.tv appointed online channel partner for ‘Kaanchi’

    By a correspondent

     

    Online digital channel Trendspotters.tv has entered into an alliance with Mukta Arts as their online channel partner for their forthcoming production ‘Kaanchi- The Unbreakable’. This will be the channel’s first ever film association as an online digital channel partner.

     

    In accordance with the treaty, Trendspotters.tv shall be associated with the film for special promotional activities of the film for the month of March and April. The film is scheduled to hit the cinemas on 25th April 2014.

     

    Kunal Kishore Sinha, Founder, www.trendspotters.tv elaborated, “At Trendspotters.tv, we are keen on engaging our audience with fresh developments in the world of entertainment. Bollywood being a much loved genre of films among our target audience, collaboration with the production house that has given some of the biggest hits of the industry is indeed a significant one. It is a matter of pride for us to have bagged the opportunity to endorse an upcoming film from the Mukta Arts banner. Film buffs can enjoy the first look, trailer and music of the film on Trendspotters.tv.”

     

  • #FF14 Day 1: Seamless content delivery across multiple platforms the way forward

    By a correspondent

     

    With so much being written and said of the emergence of multiple platforms and content delivery mechanisms in India, it was only apt to gather opinion from those that are driving the change to get a firsthand feel of the effects being spotted. The session on ‘Television 3.1’ on day 1 of FICCI Frames saw the panelists assess the future of the broadcast industry, in terms of content, marketing and distribution strategies in the era of convergence and multiplatform delivery mechanisms.

     

    The panelists comprised speakers like Tarun Katial, CEO, Reliance Broadcast, Vikram Chandra, CEO, NDTV Group, Mathieu Bejot, Executive Director, TV France International, Bharat Ranga, Chief Content and Creative Officer, ZEE Entertainment, Ashok Mansukhani, President, MSO Alliance and Todd Miller, CEO, Celestial Tiger Entertainment. The session was moderated by Janine Stein, Editorial Director, Content Asia.

     

    Vikram Chandra began by highlighting how 4G and smartphones will be the next big change agents in the Indian media landscape. “The recent months have witnessed a lot of people moving to the second screen to access content of their choice and with the access becoming more fast and affordable, smartphones will be the next big thing where content consumption is concerned,” he said.

     

    For Todd Miller, what will drive India in the months ahead will be the explosion of HD technology. Assisting that would be content from China that would be finding its way around the world, including India.

     

    Providing a different perspective, Bharat Ranga said that the way his network functioned it was a matter of tackling markets on a ‘meta’ level. Meta-national approach by companies that caters to market-specific conditions will drive the growth for broadcasters. Also, it will be essential for broadcasters to have a consumerist understanding of data and not marketing understanding. With the emergence of new platforms, Ranga noted that the industry will see the emergence of budding talents who will be able to bring in a different perspective.

     

    Ashok Mansukhani proposed that each stakeholder should be able to make money from the digitization exercise but that the consumer should have the final say. He said that the phase 3 and 4 of digitization will see a lot of players going fiber. While that will boost output, it is essential that the distribution rights of such an exercise are retained with the distributor, he noted.

     

    Tarun Katial said that India was ready to see content as the core subject that can be created for various platforms. The ability to have good investment strength and also the right mix of talent and content will help companies achieve the goal faster, he noted. Mr Katial added that while earlier ‘Content was King and Distribution was God’, the phrase has now changed to ‘Content is king and Technology is God’. Going forward, it is important that broadcasters have a hold on the IPs as that is what will matter in the future. And while much of the content at Reliance is being rented, Mr Katial added that very soon they will be working on producing content that would be their own.

     

  • #FF14 Day 1: Frames takes transformational route in 15th year

     

    By a correspondent

     

    The 15th edition of the much anticipated annual event of the Media & Entertainment industry – FICCI Frames 2014, got off to a captivating start in Mumbai on March 12, 2014. The event began with an inaugural session that saw the big guns from the media and allied sectors including the I&B Ministry delve on the theme of the conclave – Transforming Lives – while also highlighting the current state of the M&E sector and its scope for the future.

     

    The lineup of the dignitaries for the inaugural session included Harshavardhan Neotia, Vice President, FICCI; Uday Shankar, Chairman, FICCI Media and Entertainment Committee, and CEO, Star India; Punit Goenka, CEO & MD, Zee Entertainment Enterprises Ltd; Shri Bimal Julka, Secretary, Ministry of Information & Broadcasting, Government of India; Shri Srivatsa Krishna, Secretary, Department of IT, BT & ST, Government of Karnataka; H.E. Patrick Suckling, Australian High Commissioner to India and Ajit Pai, Commissioner, FCC, USA.

     

    Highlighting the state of the M&E industry in 2013, Uday Shankar said that while there was much talk about doom and gloom in the economy it was not the case for the M&E industry that grew by almost 12 per cent. But he cautioned that the goal of attaining the $100 billion landmark was a distant dream as yet. Mr Uday went on to highlight the role that the government could essay in simplifying several issues facing the industry and how it could work in tandem with the industry in resolving them.

     

    Echoing a similar point of view, ZEEL’s Punit Goenka too laid the pitch for a collaborative effort as he said that the M&E sector has played a key role in enhancing the prospects of the economy, especially on the jobs front. “The M&E industry has been a shining example of how an industry could work towards achieving a common goal of inclusive growth and being a facilitator to all concerned. It is a matter of pride for the sector to be employing more than 6 million people with the scope of providing employment to many more in time to come.”

     

    Mr. Goenka further highlighted the role that digitization has played in the year gone by, and how it would alter the broadcast landscape in the future. He affirmed to the audience that it was time to give back to the industry for whatever it has given us and that the same should be done by unleashing innovation and creativity as the core. In fact the collective aim should be to transform the lives of the global community and not just India, asserted Goenka.

     

    Having been introduced to the various loopholes and issues facing the industry at the introductory session, Shri Bimal Julka, Secretary, Ministry of Information & Broadcasting was vocal when he said that it was not just the government but the industry that should take responsibility in finding a solution to the problems at hand. “The role of the government is that of a facilitator, it would be great if the industry takes a collective stand on issues themselves and come to us if at all they face any hurdles.”

     

    Highlighting the several initiatives undertaken by the I&B ministry, Mr Julka said that the first two phases of digitization have met with reasonable success in about 42 cities and it could be credited as being the smoothest and fastest such initiative of its kind. The focus now would be on Phase 3 & 4 of the drive where an additional 110 million STBs are scheduled to be rolled out. “While there are a few issues concerning the digitization exercise, we are taking efforts to sort them out including at the level of broadcasters, MSOs, LCOs etc. But the good thing is that digitization has managed to bring in transparency in the broadcast sector, which was the main goal of the whole exercise.”

     

    Mr Julka said that the I&B ministry was also concerned about the content that was being shown to the viewers and urged the broadcasters to practice self-regulation. With 800 channels already existing and a further 250 plus awaiting clearances, it was important for broadcast companies to figure out how to dish out content that is accepted by the viewer.

     

    Mr Julka also touched upon the challenges facing the industry including control on monopoly & cross-media ownership, content monitoring, transponder capacity problem facing DTH players etc.

     

    The session proceeded to an engaging perspective on the US broadcast market that was provided by Ajit Pai, Commissioner, FCC, USA and also a keynote address by Shri Srivatsa Krishna, Secretary, Department of IT, BT & ST, Government of Karnataka.

     

  • #FF14 Day 1: Issues abound but collective stand will help boost industry morale

    By a correspondent

     

    Starting off from where the inaugural session left, the session on ‘De-bottlenecking the regulatory hurdles’ on Day 1 of FICCI Frames 2014 saw the panelists touch upon grave issues facing the industry and how the government could play an integral role in allaying the fears of all the stakeholders concerned.

     

    The panelists for the session comprised Bimal Julka, Secretary, Ministry of Information & Broadcasting, Government of India, Uday Shankar, CEO, Star India, Sudhanshu Vats, Group CEO, Viacom18 Media Pvt. Ltd, Punit Goenka, CEO, Zee Entertainment Enterprises Ltd, Rahul Johri, Sr VP & GM, South Asia, Discovery Networks and  Ajit Pai, Commissioner, FCC, USA. The session was moderated by Vikram Chandra, Group CEO, NDTV.

     

    Taking the opportunity to open up, Uday Shankar began by saying that the regulatory scenario in India was very diverse in its approach with some sectors being over-regulated while the others were under-regulated. “Lack of clarity on the intent of a regulation is something that is of concern. It has to be aligned with goals that have been set by the society”, said Mr. Shankar. He went on to highlight other issues that needed industry attention including the 10+2 ad cap provision and also the just introduced aggregator policy for stakeholders.

     

    Sudhanshu Vats presented a few indicators of his own as he said that there was a need to have a purpose to regulate. This, he said, could be achieved by having multiplicity of choice, have the need to operate like a free market and have adequate transparency and data. Adding further he said that the other essential needs were clarity, accountability and foresight.

     

    Rahul Johri pitched in by saying that there was indeed a need to have clarity on where the industry was headed on the issue of regulation and finding out what the core objective is. “We have regulated ourselves very well but there are too many regulations being imposed right now and we need to find a way to tackle them systematically. The aim should be to regulate well for the future of India.”

     

    Left to defend his turf, Shri Bimal Julka did a decent job of pacifying the panel as he said that it was a collaborative effort and that the responsibility rests with all stakeholders to get the job done. “Whatever the issues, we can agree in cohesion that it is the viewer towards whom our efforts have to be directed. Thus keeping such interests of the viewer in mind, the policies are framed with the intention of achieving inclusive growth,” he asserted.

     

    On the several impending problems facing stakeholders, Shri Julka said that the focus by the government was to throw open the field for a healthy discussion amongst all players so that they could arrive at an amicable solution. Mr. Julka asserted that despite the problems the digitization exercise was showing positive results as well including the carriage fees reporting a downward slide and more transparency being bought into the system.

     

    Mr Julka went on to add that the challenge would be to complete the phase 3 & 4 schedule of digitization and only after that could the issues of subscription versus carriage fee be resolved. But he cautioned that the stakeholders also had a role to play including deciding on how to make their content standout amongst a plethora of options facing the viewer.

     

    Sudhanshu Vats went to the extent of saying that there was no need to have a licensing system except for the spectrum allocation and that even if there is a licensing system there needs to be a fixed timeframe to address that. He added that things will be clear once the entire digitization exercise is complete but prior to that it was important that the industry take a hard look on addressability factor of digitization.

     

  • #FF14 Day 1: Text of Uday Shankar’s speech

    Mr. Uday Shankar, Chairman of Ficci’s M&E Committee and Star India CEO giving the Opening Remarks at FICCI Frames 2014

    Opening Remarks by Uday Shankar, Chairman, FICCI Media and Entertainment Committee, and CEO, Star India, on Day 1 (March 12) of FICCI Frames 2014. Text courtesy: PR Department, Star India

     

    Good morning and welcome everybody.

     

    Honourable minister Manish Tewari, United States FCC Commissioner Ajit Pai, Dr. Khullar, Secretary Julka, my dear friends Punit and Karan, the wonderful team of FICCI that have organized this event, ladies and gentlemen.

     

    Amidst an environment of gloom and doom, the media and entertainment industry registered an impressive growth of 12% last year. The fact that we have been able to deliver this in light of an overall economic growth of 4% and a major resetting of exchange rates is a testament to the tenacity of the industry’s leaders and stakeholders. However, while delivering a growth rate three times that of the country at large is cause for satisfaction, the truth is that in dollar terms, we have barely made a dent this year. And, even more importantly, we remain at a great distance from the goal of growing the sector to 100 billion dollars.

     

    But, this is not a sector whose value is measured just by the size of its financial contribution. Media and entertainment remains central to defining the direction of India’s social and economic path; its work remains key to the imagination and inspiration of a billion Indians every day; and its health will be central to the ethos and values of the society we collectively shape.

     

    And, therefore, it is hugely important that we are gathered here in the days and weeks leading up to the national elections – one which comes at a particularly important time in our post-independence history. We have run the course on exploiting the momentum of the first set of economic reforms unleashed in 1991. We have created enormous opportunities and wealth for many. And, now, we are faced with a far more complex set of economic and social choices, including on the ideal role of the government, its relationship with industry and, in fact, the relationship of the private sector with the overall society at large.

     

    And no relationship is more important than the one between the government and the media. In many ways - and not uniquely to India - this is a relationship which by the very nature of its constituents is conditioned to be adversarial.Governments and political leaders are deeply aware of the power of shaping the message. The natural instinct of the state is to control the message. And, where it can, to control the messenger. The natural instinct of the media, whether the news media or the creative community, is to resist control, is to question authority. There is, therefore, tension inherent in the conflicting instincts of the two constituents.

     

    In India, that relationship has often moved from being just adversarial to flirting on the boundaries of dysfunctionality. Used to only a compliant state media, successive central governments have often used policy to limit free expression.And, increasingly, state governments have crossed the boundary to actually own and run private media enterprises.Why just run channels when you can integrate across the whole value chain, and run entire businesses from delivery to content?

     

    It is surprising indeed that irrespective of the political party or government, the expectation from the media is that they will always be flag bearers for the party line. So, there is no complaint when the media builds up the image of a clean, technocratic Prime Minister. Nor is there any problem when the media trumpets the idea of a youth leader or champions the development achievements of state leaders. But dare they cross the line into seeking accountability or evidence ofperformance, they are dubbed as incompetent, or worse,corrupt. What truly outraged me was the recent turn of events. It was the media that had created rock stars out of a bunch of street artists and protesters. It was the relentless 24 by 7 coverage of fasts and high decibel theatrics that created a political party from thin air and installed them in the government. You would have thought these leaders would have been grateful to the media for nurturing them. And, yet, even they resorted to accusations of corruption the minute the conversation turned to accountability for their choices and performance!

     

    Of course, the media has been more than just a silent victim in creating this environment. Too often, the news media has focused on what is sensational rather than what is important. Too often, the point of news seems to be to reduce the extraordinary diversity of the country to the most banal, a contest between extremes that can only be resolved through a shouting match on live television. With singular dominant narratives, the trend seems to be of creating heroes on a particular day only to be labelled as thugs and crooks the next.

     

    Legend has it that, in the early years of independence, Prime Minister Nehru used to write criticisms of his own government under pseudonyms published in leading newspapers. So concerned was he about a press that was not free and was not fiercely independent. It is ironic that today, it is perhaps easier to get articles published for a fee in newspapers than to place an honest criticism of the government. Nehru’s successors, both in politics and in the media, have strayed a long way away from that aspirational vision of the role of media in Indian society.

     

    Instead, it is now a broken relationship, and one that has dire consequences for both the industry as well as the government. The failure to establish credibility and importance has meant the industry perennially stays on a back foot, defending itself against every new wave of regulation aimed only at further curtailing its wings. In return, the government has not been able to leverage either the impact that mass media can have in India or harness the power of media as an economic engine that can create jobs and wealth.

     

    It is therefore appropriate that the weeks before the elections is the right time to call for a new contract between the government and the media. One that reaffirms both stakeholders to the theme of this year’s FICCI Frames: Transforming Lives.

     

    The central principle of this contract should be the recognition that this industry is a unique and powerfuleconomic enterprise. It is capable of creating employment and wealth much faster than most other sectors and with the ability to be a force multiplier, like it is in most countries. It is particularly relevant in India because it can be an employment generator without sizable public investments and without being hampered by the deficiencies of public infrastructure.

     

    Why would you not nourish an industry which has the potential to become a huge employer? Why would you not fuel an industry that can grow with more policy support than resource support?

     

    Second, the next government should recognize that it matters what the agenda of the Information and BroadcastingMinistry is. It matters what the Ministry sees as its dominant priority.  Do you see media as a tool for transforming lives thereby using it in the interest of serving the population or as something so powerful that it needs to be controlled? The regulatory agenda is one of the most crucial parameters that will shape how this industry will look like in the next 5, 10 and 15 years, and after some progress in the last few years, this agenda has now completely stalled. Whether in accelerating the digitization of television delivery, or creating progressive frameworks on consumer pricing, this agenda is waiting the arrival of a transformational government.

     

    And, this is particularly important when you review the media landscape today. It is littered with unviable and unhealthy media companies that cannot survive in the current framework. And unless all stakeholders are committed to retaining the vibrancy of the sector, the biggest victim will be free expression. No value is more important to this countrythan preserving the ability of a free media to showcase plurality in opinion and creative expression.

     

    I hope that the next few days will give us an opportunity to lay the foundations of a constructive relationship with a newgovernment for the next 5 years.

     

    Thank you.

     

  • Frames: Fifteen years of being the biggest M&E event in India

    Source: KPMG in India Analysis

     

    By A Correspondent

     

    The fifteenth edition of FICCI-Frames had reason for some special celebration. But, save the strong mention of this milestone, it would appear like any other Frames.

     

    The presence of a film star at the inauguration, the FICCI officebearers, a representative or two from the government and a large industry presence.

     

    Yet, it’s possibly the biggest event of the media and entertainment sector each year, and even the curation of the conference was wanting, as a celebration of the industry, it was unparalleled.

     

    But first a disclosure. MxMIndia is a media partner of the event, as it is of many FICCI M&E events through the year. Though that’s not the reason why we are covering the event. By the sheer presence of industry heavyweights around, it gains importance.

     

    Unlike the issue of digitization in the year 2012 which made the thirteenth edition of Frames such a huge pull, what we had last year was a disappointment. And this year’s edition is a continuation of that. To say that it’s a conference of the entire media sector may be incorrect. Successive editions of the event have given shoddy treatment to the print and sectors other than television and cinema.

     

    The FICCI-KPMG report on the sector -  in the backdrop of the various adspend reports published by media agencies – is a reference volume for the trade. Although the report is available online, the near-9MB, 293-page hardback is best consumed on print.

     

    An extract from the summary capturing the highlights of 2013:

    The Indian Media and Entertainment (M&E) Industry, one of the most vibrant and exciting industries in the world, has had a tremendous impact on the lives and the Indian economy. As the M&E industry widens its reach, it plays a critical role in creating awareness on issues affecting, channelling the energy of and building aspirations among India’s millions. As it entertains and informs the country, the M&E industry has been a catalyst for the growth of large parts of the Indian economy. Take for example, a villager – illiterate and previously unaware of what life has to offer, who begins to see a better life through entertainment programs on TV and aspires for a better life for him and his family. This drives demand for various products and services. These aspirations have been key to self motivated transformation taking deep root in India – Transformation not just from handouts and government schemes, but transformation stemming from ambition and aspiration. The media plays a significant role in our lives today and is all pervasive with touch points ranging from television to newspapers to films to radio to outdoor properties. With the addition of new media such as social networking services, animation and VFX, online gaming and applications running on mobile devices, a new dimension has been added to the world of media that was dominated by traditional media. In addition to their implicit impact, all media platforms provide a great opportunity to carry explicit messages to create social impact. Further, interactive and social platforms give people a voice.

     

    Examples include –

    • Films: Short films on disadvantages of tobacco consumption/smoking before each film screening in a theatre

     

    • Television: TV shows on social issues to raise awareness, such as Crime Patrol – Dastak (Sony Entertainment Television), Savdhaan India – India fights back (Life OK) and Satyamev Jayate (Star Plus).

     

    • Radio: Content highlighting social initiatives aired on radio such as Mirchi for Muzaffarnagar (Radio Mirchi), Munni Vardaan Hui (Red FM), and Green Ganesha (Big FM).

     

    • Print: Friends of Hindustan (Print campaign by Hindi daily Hindustan in Patna), Good is in our DNA (print campaign by DNA).

     

    Social Media: UNICEF India’s campaign of ‘Take Poo to the Loo’ on Facebook, Twitter and Youtube to spread the message of the harmful effects of open defecation;4 connects consumers with each other and provides a platform for opinion generation.

     

    In calendar year 2013, the Indian Media & Entertainment (M&E) industry registered a growth of 11.8 per cent over 2012 and touched INR 918 billon. The overall growth rate remained muted, with a slow GDP growth and a weak rupee. Lower GDP meant lower demand from the consumer and this impacted advertising. At the same time, the industry began to see some benefits from the digitisation of media products and services, and growth in regional media. Gaming and digital advertising were the two prominent industry sub-sectors which recorded a strong growth in 2013 compared to the previous year, albeit on a smaller base. For projections till 2018, digital advertising is expected to have the highest CAGR of 27.7 per cent while all other sub-sectors are expected to grow at a CAGR in the range of 9 to 18 per cent. Overall, the industry is expected to register a CAGR of 14.2 percent to touch INR 1785.8 billion by 2018.

     

    The Indian M&E sector showed some resilience and began to grapple seriously with some structural issues it has long talked about but not engaged with. These include TV and Print industry measurement, advertising volumes, inventory and rates, actions to see digitisation through and reap its benefits, working out the MSO-LCO relationship, copyright laws and operational efficiency. Many of these remain alive and will take a few years to sort through. Others, like phase III of radio – are still pending regulatory action.

     

    Increasing digitisation across sub-sectors of M&E industry, rate increases in TV, channel packaging by MSOs, innovative strategies to monetise digital content, rapid growth of new media powered by increasing smartphone penetration, and campaign spending during the general elections are likely to be the key levers of growth for the Indian M&E industry in 2014. A well thought out, consistent and long term outlook on regulation is also the key to create an M&E industry that is world class in scale and plays its part in transforming India.

     

  • Media Owners rise, professionals fall in Indian Express powerful Indians ranking

    By A Correspondent

     

    The Indian Express list of the Most Powerful Indians has been released with today’s edition of the paper (Thursday, March 13) and while there are no omissions from the list, the media owners see a dramatic rise in ranking. Samir and Vineet Jain of Bennett, Coleman and Company Limited have moved up from #74 last year to #51 this year. Mahendra Mohan Gupta and Sanjay Gupta of Jagran Prakashan are up from #75 to #52. HT Media’s Shobhaha Bhartia is up from #77 to #68 while the ABP Group’s Aveek Sarkar is up from #85 to #72.

     

    Arnab Goswami though has had a huge fall – from #43 to #80 and Uday Shankar three ranks down from #78 to #81.

     

    The report curiously misses out on some other biggies in the business: Subhash Chandra and son Punit, Kalanidhi Maran – the most profitable television media empires, Raghav Bahl of Network/TV/Viacom 18, the Agarwals of Dainik Bhaskar, the Kotharis of Rajasthan Patrika and given that they control the fortunes of most media companies: CVL Srinivas of GroupM and Sam Balsara of Madison. The list of omissions could go on, but it must be mentioned that in one of the side lists of Top 10 in sports, Star India CEO Uday Shankar at #4 is ahead of a certain Sachin Tendulkar at #5.

     

    We have of course not factored in the fact that the likes of Mukesh Ambani, Anil Ambani, Shah Rukhi Khan, Salman Khan, Cyrus Mistry, Sunil Bharti Mittal are also on the list, but, of course, media is not their mainstay business.

     

     

    Rank Name  Organisation Rank 2013

    51

    Samir and Vineet Jain Bennet, Coleman & Co Ltd

    74

    52

    MM Gupta and Sanjay Gupta

    Jagran Prakashan

    75

    68

    Shobhana Bhartia Hindustan Times

    77

    72

    Aveek Sarkar Ananda Bazar Patrika

    85

    80

    Arnab Goswami Times Now

    43

    81

    Uday Shankar Star India

    78

     

  • Shailesh Kapoor: Elections, Cricket& More: The Year of Male Viewership?

    By Shailesh Kapoor

     

    A little television trend has been developing over the last two years, of which (I suspect) the current TV ratings system has no solid evidence. It is about the increasing power male viewers are wielding while controlling the remote.

     

    Multiple factors have contributed to this slow but definitive shift over time. The socio-economic aspect is perhaps the most intriguing, but also the most arguable. As gender inequality becomes less stark in urban India, because of higher literacy rates in the new generation of women and growth in the still-miniscule population of working women, female viewers are beginning to access more avenues of engagement and entertainment. As their dependence on television, currently too high to be termed healthy, reduces, so will their desire to control the remote at all times.

     

    It must be mentioned that there is currently no quantification available for the trend above, and hence, the speed of this change is difficult to ascertain. But signs of change are evident, especially in post 9pm consumption behaviour. That the daily serials (barring a couple) have not managed to reinvent at the desired pace has contributed significantly to bringing in this change as well.

     

    2014-15 may just end up being a year where we will see acceleration on this aspect like never before. The T20 World Cup starts this weekend. An IPL is round the corner. There is a busy cricket season round the year, ending with the Cricket World Cup in Feb-March 2015, which India will play to defend.

     

    But the big event of this year comes in the form of the General Elections. Chaos and theatrics are par for the course in what are set to the messiest elections ever in India. News channels have been capitalizing the goings-on well. And we know it’s only the start. If we have a hung verdict, the drama may last well into June, even July.

     

    Cricket and elections, coming together, are going to create unprecedented disruption in viewership patterns. Over three months, this can impact habits enough to create an impact over a long run. New daily soaps of the staple variety have anyway been opening low and struggling to find loyal audiences. The GECs will find it progressively difficult to change that this year. I suspect they are left with little choice but to innovate, on stories as well as story-telling.

     

    Is a gender-balanced viewership a good thing? Definitely. Gender equality is good in everything. Period. And television viewership should be no exception. We are still a few years away from this “equality” in India, but this year can be the watershed in many ways.

     

    So, all you men, hold on to your remotes this season and be a part of the change!

     

    TV Trails is a weekly column written by Shailesh Kapoor, founder and CEO of media insights firm Ormax Media. He spent nine years in the television industry before turning entrepreneur. The views expressed here are his own. He can be reached at his Twitter handle @shaileshkapoor