MxMIndia

Category: TV

  • Reliance to invest over Rs 1,500 crore in TV18 Group

    Done deal? Mukesh Ambani to enable Raghav Bahl to pick up ETV. RIL likely to invest Rs 1.5k cr for 30% & 4G rights

    By R Sriram

     

    Reliance Industries is embarking on a major diversification into the media and entertainment sector with the Mukesh Ambani firm agreeing to fund a transaction that will result in a sizeable stake for itself in a company controlling two of the industry’s largest businesses, the Network18 Group and the Eenadu Group of channels run by the Hyderabad-based Ramoji Rao.

     

    People close to the transaction, which has a number of stages, told ET that an RIL subsidiary will help the promoter group of Network18 fund the rights issues of its two listed entities, Network18 Media and Investments, which runs the portal moneycontrol.com, and TV18 Broadcast Ltd, which operates a number of business and general news channels, notably CNBC TV18 and CNN-IBN.

     

    ET was not able to independently verify the amount to be invested by RIL, but people with direct knowledge of the transaction estimated it to be more than Rs 1,500 crore. The money from RIL will help Mr Raghav Bahl, the promoter of the TV18 Group, subscribe to the rights issues of both the listed companies, Network18 and TV18. The full amount expected to be raised through the rights issues is estimated at over Rs 3,500 crore.

     

    The boards of TV18 Broadcast and Network18 Media will meet on Tuesday to discuss plans for a rights issue. Mr Raghav Bahl did not respond to an email questionnaire; a Reliance group spokesperson also remained silent, while Mr B Sai Kumar, the CEO of Network18, declined comment.

     

    Times NOW and ET NOW, owned by Bennett, Coleman & Co. Ltd, the publisher of The Economic Times, compete with some of the television channels owned by Mr Bahl. The strategic investment by RIL will be used by the Network18 Group to retire debt and eventually buy out RIL’s stake in Eenadu, the pan-India vernacular language channels owned by Mr Ramoji Rao.

     

    RIL sources said they had invested Rs 2,600 crore in the Eenadu Group through a subsidiary giving it ownership of all businesses apart from its Telugu channel, in which it owns 49 per cent. The transaction, once complete, will result in RIL recovering most of its investments in Eenadu. Messages and an email sent after business hours to the office of Mr CH Kiron, the managing director of Ushodaya Enterprises, the holding company of the Eenadu Group, did not elicit any response.

     

    By its own admission before the Andhra Pradesh High Court, Reliance Industries has said it has invested Rs 2,600 crore in entities of Mr Nimesh Kampani-led JM Financial Group, which in turn had invested in Ushodaya Enterprises. The AP High Court is hearing a petition alleging the investment was a payoff to Mr N Chandrababu Naidu, the former chief minister of Andhra Pradesh, an allegation RIL has denied in its affidavit. RIL’s deal with Mr Bahl, likely to be announced on Tuesday, is expected to create a powerful national news and entertainment company spanning several regional languages as well as English and Hindi.

     

    RIL to get Exclusive Rights to Content

     

    RIL, people close to the transaction said, is expected to hold an economic interest equivalent to a 30 per cent stake in the promoter group of companies, with the original promoter Mr Bahl owning 51 per cent and all voting rights.

     

    Further, RIL will have exclusive rights to content from 30 channels and web properties of the two media houses, which will lend a competitive edge to its broadband services to be rolled out later this year.

     

    RIL is laying the groundwork for national 4G broadband services expected to be launched sometime this year. Content for broadband services is generally outsourced, but RIL will have an advantage over others with this transaction which will give its subscribers a wide variety of channels ranging from general entertainment to news and movies.

     

    Earlier on Monday, Mr Sai Kumar, in a letter to all employees of TV18, hinted at a solution to the group’s debt problems. “Let me also take this opportunity to tell you that we are very close to addressing our debt levels and related issues which have been reported by various media in the last few weeks. We will learn the details from Raghav pretty soon,” said Mr Sai Kumar, who took over as CEO after the sudden resignation recently of long-time CEO Mr Haresh Chawla.

     

    The money is likely to be invested directly in companies controlled by Mr Raghav Bahl, such as RB Holding Pvt Ltd and RB Investments Pvt Ltd. These companies own 30.34 per cent stake in Network18 Media while Mr Bahl holds 9.03 per cent in his name. Network18, in turn, is the main shareholder in TV18 Broadcast with a 49.98 per cent stake. The two companies have suffered heavily in the downturn triggered by the financial crisis of 2008-09. While revenue growth has been strong, profits have plummeted and borrowings have soared.

     

    At the end of March 2011, Network18 had debt of Rs 1,777.89 crore. Its profit for that year fell 87.27 per cent. TV18’s debt stood at Rs 550.54 crore while profit fell 17.40 per cent. The markets have punished the two companies. Network18′ s market cap is down 171.57 per cent since January 5, 2009 while TV18’s has fallen 560.23 per cent in the same period. Mr Bahl’s companies also have a distribution joint venture with the Chennai-based Sun Group, called Sun18. It is not known if Sun’s channels, among the strongest in the south, are a part of this arrangement. American giant Viacom too has a joint venture with Mr Bahl for producing movies.

     

    Source:The Economic Times

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

  • TAM Sports' IPL 3 & 4 books will include an in-depth study on the event's viewership dynamics, commercial and non-commercial advertising

    IPL sponsorship assessment in new TAM volumes

    By A Correspondent

     

    TAM Sports, a specialized division of TAM Media Research, which has done extensive work in the field of sports measurement and valuation in the past few years and specializes in measuring the sports sponsorship Return on Investment (ROI), announced the launch of special features on IPL 3 and IPL 4.

     

    TAM Sports has done an extensive assessment on IPL 3 & 4, focusing on the dynamics of TV audience and sponsorships. This series of TAM Sports publishing aims at benefiting sports associations, broadcasters, advertisers and sports marketing consultancies and help them understand the complexity involved in expecting ROI. TAM Sports started this initiative with IPL Season 1 and has also released a book on IPL Season 2.

     

    TAM Sports’ IPL 3 & 4 books will include an in-depth study on the event’s viewership dynamics, commercial and non-commercial advertising (product placement) that brings out the nuances with respect to visibility of brands and branding units along with a comparison across seasons.

     

    It will have a detailed study on consumer impressions, brand placement, on-screen and instadia advertising along with a special section on franchisee advertising done during IPL seasons 3 and 4. One part of this offering will also include an analysis on PR exposure received by the franchisees and various brands associated with IPL.

     

    Talking about the IPL 3 & 4 feature, LV Krishnan, CEO, TAM Media Research said: “Based on the overwhelming response to our earlier book series on IPL 1 & 2, we are glad to release the combined book volumes of IPL 3 & 4. These two volume will also highlight the insights on sports sponsorship ROI on various platforms – instadia, on-player and on-screen, along with throwing light on the tournament viewing analysis like audience profile, how various markets have responded to the event, impact of IPL on other genres with a special new section on franchisee advertising and print in-content placement. While TAM Sports has alays had a big focus on cricket due to its large audience and advertising base, we will also continue to provide more such insights in other sports like F1, tennis and football as well serve the respective industry for its business requirements.”

     

    Some observations from the TAM Sports IPL study are:

    • IPL seasons have been successful in reaching maximum audiences year after year. IPL Season 3 reached 41 + million audiences whereas IPL 4 reached 46+ million viewers.
    • IPL 3 & 4 garnered maximum contribution from CS 35 + age group whereas IPL Season 4 has seen increase in kids viewing.
    • In comparison with IPL 3, IPL 4 witnessed 33 per cent growth in overall advertising while commercial, on-screen and instadia advertising witnessed a growth of 21 per cent, 50 per cent and 33 per cent respectively.
    • Commercial advertising during IPL Season 4 increased by 21 per cent as compared to IPL Season 3.
    • IPL 4 saw utilization of 60+ instadia platforms.
    • On player advertising has witnessed 37 per cent growth.
    • 57 brands got exposure through 16 accessories platforms and contributed 2 per cent share of the total ‘instadia’ advertising.

    TAM is a joint venture between AC Nielsen Research Services (Nielson Company) & Kantar Market Research. Besides measuring TV Viewership, TAM also monitors advertising expenditure of television, print and radio through its division AdExIndia.

     

    Since 2004, it extended its presence in the PR measurement & analysis space for Corporate/Marketing Clients by setting up a separate division, Eikona PR Measurement.

     

    In 2007, the joint venture introduced RAM (Radio Audio Measurement) service to track radio listenership for the Indian Radio Broadcast Industry.

     

    In year 2009, TAM launched a division, called TAM Sports that specializes in monitoring Sports Sponsorship ROI.

     

  • Undercover Boss is the stuff of modern-day fairytales

    Gouri Dange: Head Honcho’s Day Out

    By Gouri Dange

     

    I don’t tear up (fancy word for cry foolishly) watching anything on TV or in the movies usually. Close friends sit around pulling on their box of tissues even while watching TV ads, for godsake, and I usually smirk and talk loftily and alliteratively about manipulation of the mind by the media and other such airy stuff.

     

    Weepy Indian soaps, saas-bahu dramas in Hindi and Marathi, I catch only by accident when my finger touches the wrong buttons on the remote; and when I then see a screen-wide shot of large reddened cow-eyes, mascara fake lashes shimmering with tears, I only guffaw and cringe.

     

    But here I am, sniffling after every episode of Undercover Boss. Why, oh why? People around me ask. But they’re quite touched too, I can see.

     

    First a little about the format: in each episode (on BBC Entertainment) the CEO or owner of a big corporation goes on to his shopfloor or into the field, incognito as an entry-level employee, spending one week doing the rounds with ‘lower rung’ staff. He changes his appearance, and since the corporations are huge (45,000 employees, etc) and have far-flung operations, none of the staff that he interacts with are likely to recognize him.

     

    The explanation given for the accompanying camera is that a film is being made on entry-level workers. The boss works in various areas of the company operations, at different locations. This way, he gets to interact closely with the lower and middle order in his corporation.

     

    Invariably, his 7-day outing is an eye-opener for him, one day at a time. The episode is dotted with poignant as well as really funny interactions, as he gets to see and work the system himself. He himself is often bad at doing what they do, invariably needs help, and is sometimes declared unemployable by the supervisor he may be working with!

     

    He meets employees who soldier on in spite of serious health or personal issues, he sees some of the absurd outcomes of his own policies, made far away in corporate settings. He is, to use a cliché, humbled by his own people as he goes along with them on their daily rounds.

     

    At the end of his week undercover, the head honcho returns to his corporate HQ, and calls a handful of the employees who he feels are doing a particularly good job under trying circumstances. He first reveals his true identity to them, much to their shock and amusement, as they recall how frank and ‘themselves’ they have been around him, when they thought he was just a newbie. He also calls in a few link-men in the chain, who need to change something in order for some policies or attitudes or daily circumstances to change for the better.

    The hard-working, cheerful, resourceful employees are then rewarded with promotions, or bonuses, while some employees are given training or better working conditions. Sometimes, the boss will step right out of the groove and help with a personal problem, or even better, turn the person’s coping skills into something of use to the company itself.

     

    For instance, one employee who undergoes dialysis every week, and yet works hard and happily, is also given time off to volunteer at a hospital which is something he wants to do – here he becomes a shining example of the benefits of positivity and good work.

    A simple ‘go-cart’ may be given to some employee who legs it from one building to the other far too many times a day in a large factory compound. More budget allocations are made, as the Boss learns experientially, that his operations just cannot always be about maximizing profits and minimizing down time. When he communicates this to his Board, you can see some faces thaw, some faces tighten; it is very interesting to see those reactions too.

     

    Undercover Boss UK episodes are restrained, and I hoped that the US ones would not be simplistic and manipulative; luckily they are not. Now you’re free to call me a Hopeless Romantic, but what slays me each time is the profoundly shaken look on the Boss’s face, many times during his undercover week. The other thing that has me reaching for someone’s tissue box (I don’t own one, perhaps I need to, now) is the changing look on an employee’s face – from guarded, restrained listening, to a shy child-like slow flush or grin. This changed expression comes up when he/she realizes that someone has watched them closely as they do sometimes mind-numbing jobs (either monotonous, or plain icky, including non-flushing toilets), appreciated their work, and is following up with not just a perfunctory pat-on-the-back, but with change and rewards. There are also often frank and forthright apologies from the Boss for being blind to many things in his own company and his people.

     

    When everyone in an interaction becomes a little more human, I tend to come undone. Of course, the program has QUITE a few ad breaks, and that becomes the Brechtian device that alienates you nicely, so that you never get too caught up and carried away, fortunately or unfortunately.

  • The campaign has been conceptualized by Ogilvy & Mather and aims to differentiate Childsurance from other methods of planning for children's education which may fall short at the last minute

    IDBI Federal’s new Childsurance “fail-safe” plan

    By Shubhangi Mehta

     

    IDBI Federal has launched their latest ad campaign to announce the launch of their child plan – IDBI Federal Childsurance(R) Dreambuilder Insurance Plan. Childsurance is unit-linked insurance plan with innovative features that ensures a perfect combination of optimum returns and safety that can help parents create a child plan that does not fail at maturity.

     

    The campaign has been conceptualized by Ogilvy & Mather and executed by Curious Films, and aims to differentiate Childsurance from other methods of planning for children’s education which may fall short at the last minute.

     

    The tagline ‘Plan jo Fail na ho’ emphasises the Childsurance plan’s positioning as “the child plan that does not fail”. The campaign taps into the insight of how most parents would not like to live with the regret that their children were not able to pursue the career of their choice, especially since they are responsible for planning their children’s education.

     

    The ads showcase people who missed their calling in life as they were unable to get admission for higher education due to lack of funds and the stories are portrayed with IDBI Federal’s trademark humorous storyline.

     

    Commenting on the ad campaign, Kawal Shoor – Head of Planning, Ogilvy & Mather Advertising said: “In a world of goody-goody child plan advertising, we wanted to ensure that IDBI Federal’s Childsurance stood out. And there’s nothing like some naked truth, well told, to set one apart in a sea of plastic emotions. Many of us have felt, sometimes very often, that had our fathers invested in a particular company stock, or bought that piece of land which was going cheap years ago, we would have been somewhere else. This uncomfortable truth became the cornerstone of our campaign. The challenge was to do it in such a way, that the campaign acts like a gentle pinch and yet land the key message of – a plan that never fails – powerfully.”

     

    Engineer
    [youtube width=”400″ height=”200″]http://www.youtube.com/watch?v=WpYC26i6ru4 [/youtube]

    Mr. Aneesh Khanna – Sr. Vice President, Head – Marketing and Product Management, IDBI Federal Life Insurance said: “Choosing the right plan is very critical today, given the rising inflation in education costs. Childsurance has the in-built Waiver of Premium benefit which allows the planned accumulation of funds to continue even in the absence of the provider. This will ensure that the child’s education plans are not compromised due to lack of funds. Another key feature is the Systematic Allocator Fund which gradually moves the fund value from equity-based funds into debt-based funds as the plan approaches maturity. This diminishes the effect of a sudden drop in the equity market when your plan is close to maturity, at a time when you had to pay the planned fees for your child’s education.”

     

    Doctor
    [youtube width=”400″ height=”200″]http://www.youtube.com/watch?v=Ksq2AEdZxuk[/youtube]

    Mr Khanna added: “Childsurance, with five unique features, can be the strong partner that parents seek to ensure that their children’s dreams come true, rather than see these dreams be compromised. This is captured humorously in our latest ad campaign.”

     

    The effort to choose the right child plan is further supported on ground by the S.T.A.R. Test, a unique test that can be done in 7-10 minutes, and helps customers understand their needs scientifically and create a customized plan to secure their child’s future.

     

    CREDITS:

     

    Advertiser: IDBI Federal Life Insurance Co Ltd

     

    Aneesh Khanna: Senior Vice President, Head-Marketing and Product Management, IDBI Federal Life Insurance Co Ltd

     

    Abhijeet Powdwal: VP, Marketing, IDBI Federal Life Insurance Co Ltd

     

    Alok Kalra: AVP, Brand, PR & Digital

     

    Creative Agency: Ogilvy & Mather India

     

    National Creative Director: Abhijit Avasthi

     

    Creative Director (Copy): Amitabh Agnihotri

     

    Creative Director (Art): Samir Sojwal

     

    Production:

     

    Film director: Vivek Kakkad

     

    Production House: Curious Films

     

     

  • Pradyuman Maheshwari thinks the Reliance Industries Ltd-TV/Network 18-Eenadu deal will help improve the financial health of the news media

    Mediaah!: Why Mukesh Ambani’s Network18 foray is good news for the Indian media

    By Pradyuman Maheshwari

     

    It’s a complex deal and required the financial wizardry of the accounting boys at Reliance Industries, Network 18 and their advisers.

     

    The bottomline is: Reliance is buying into Network 18 and asking it to manage its interests in ETV. Mind it, Network 18 and Television 18 are still Raghav Bahl companies with a majority and controlling stake. Also, Reliance is not going to have Mukeshbhai playing supereditor. RIL has set up a trust (Independent Media Trust) with eminent people as members.

     

    The Ambanis love affair with the media started ever since his father Dhirubhai got into the big league and had a soured relationship with The Indian Express founder Ramnath Goenka. The Ambanis bought over the much revered Commerce Weekly and turned it into a business daily called The Observer of Business and Politics. It also bought over The Sunday Observer. Both the papers shut and there have been rumours ever since of brothers Mukesh and Anil infusing funds in media ventures indirectly.

     

    There were direct ones too like Reliance Entertainment with Amit Khanna at the helm and later Rajesh Sawhney and now Tarun Katial leading the agenda. But it’s the indirect, in-the-closet funding that’s always been of interest. At least one large newspaper and one news channel are said to have benefitted from their largesse.

     

    Interestingly, Anil Ambani’s Reliance Capital had also picked up some stocks in Bahl’s enterprise a while back and more recently a sizeable chunk in Bloomberg UTV. The Bloomberg-licensed channel is now controlled by Reliance ADAG.

     

    While there could be issues of how the interests of big business companies will impact the content of the media they own, especially when there are controversies like we had with Niira Radia and the 2G scam, to my mind the entry of the Ambanis into the media is good news.

     

    The media sector – news media specifically — has been facing awful times. There have been many wrong investments and more importantly the spends are much higher than revenues. The sector is also majorly underleveraged, with airtime most often being sold at a song.

     

    On the possible clash of interests between the business dealings of the large conglomerates and the editorial independence of newsrooms, I have two points on offer:

     

    1. It’s not that all of the the current lot of media companies are squeaky clean and honest. The roster of newspapers indulging in paid news reads like a Who’s Who of Indian media. There are biases which do come in and advertisers often exert pressure and threaten to pull out ads if there are negative stories

    2. The Reliance Industries move of setting up a trust to further its interests in the media is a healthy sign and if it works and is truly independent could lead the way of other business groups entering the media.

     

    I hope the Mukesh Ambani foray sees more big business invest in the media. It will be good for the financial health, lead to more jobs and, Inshallah, better salaries.

     

    Tomorrow: More about the Media and Big Business and the Prime Minister’s speech on Monday

     

    Buzz me if you have a story to tell and gossip to share. Confidentiality assured. Andar ki baat will stay under. There are various ways you can reach me: pradyumanm[at]mxmindia.com, BBM @ 23050B5D, Whatsapp/Gtalk pradyumanm[at]gmail.com, @pmahesh, 98338 76278.

     

    Disclaimer: Although Pradyuman Maheshwari is CEO of MxMIndia other than being editor-in-chief, he chucks those hats while writing Mediaah! So, the views expressed here are entirely his own and not those of the website and the team that runs it (especially the National Sales Head!).

     

  • The channel is expanding its reach by being the first channel in the genre to be available in six languages

    Disney XD launches Bengali and Marathi feeds

    By A Correspondent

     

    After garnering leadership status in the South, Disney XD, the quintessential action, adventure and comedy destination for boys is ready to capture attention of newer markets with the launch of Bengali and Marathi feeds.

     

    Natasha Malhotra, VP and GM, Walt Disney Television International India, said: “Disney XD, while including girls, mainly speaks to boys in the age group of 6-14 and delivers exciting stories around adventure, action, comedy while reflecting core Disney brand values of accomplishment and heroism. Disney XD has a unique content mix of live-action and animated programming. We are excited about expanding its reach by making it the first channel in the genre to be available in six languages. We will continue to build on it as we deliver great fun-filled, action-packed entertainment that is engaging and locally relevant.”

     

    Disney XD will launch a brand new show Scaredy Squirrel on January 9, 2012 (Mon to Fri 1 PM). Scaredy Squirrel is fun-filled series inspired by the popular book series by Mélanie Watt about a creative and quirky squirrel, as he tackles life’s daily challenges.

     

    “Disney XD enjoys loyalty and following from boys driven by Disney original animation shows such as Kick Buttowski: Suburban Daredevil and Marvel, the quintessential boy brand. These are wonderful examples of Disney’s on-going focus on creating great new properties with clearly defined character profiles and story patterns to position the channel as top of mind for boys,” Ms Malhotra added.

     

    The channel will also create a strong destination for Marvel branded characters and stories which have been a part of every boy’s growing up years with the launch of Spider-man on weekdays (Mon to Fri 2 PM).

     

  • The Board of Directors of TV18 Broadcast Limited (TV18) also approved the acquisition in ETV’s Hindi news channels, non-Telugu GEC Channels and ETV Telugu Channels

    Network18 and TV18 announce Rights Issues

    By A Correspondent

     

    Network 18 Media & Investments Limited, at the board meeting held on Tuesday, approved a Rights Issue of Equity Shares to raise an amount up to Rs 2,700 crore at a price to be determined by the Board in compliance with regulatory requirements, but not exceeding Rs 60 per equity share.

     

    TV18 Broadcast Limited has approved a Rights Issue of Equity Shares to raise an amount up to Rs 2,700 crore at a price to be determined by the Board in compliance with regulatory requirements, but not exceeding Rs 40 per equity share.

     

    Network18, being the promoter and holder of majority equity in TV18, would be subscribing to about Rs 1,400 crore in the TV18  rights issue – therefore, once this subscription amount is netted out, the Net Aggregate Rights Issue of both Network18 and TV18 will result in a fund raising of about Rs 4,000 crores.

     

    The contribution of the current Promoter Entities of Network18 in this Net Aggregate Rights Issue of both Network18 and TV18 will be about Rs 1,700 crores.

     

    TV18 will utilise the Rights Issue proceeds to repay the existing debt, fund the acquisition of ETV channels and fund working capital needs. Network18 will utilise the Rights Issue proceeds to repay the existing debt and subscribe to the Rights Issue of TV18.

     

    The promoters of Network18 will be subscribing to their entitlement in full. They also reserve the right to subscribe to any unsubscribed public portion of the Rights Issues.

     

    Raghav Bahl, the founder and promoter of Network18 and TV18, has informed that promoter companies have entered into an arrangement with Independent Media Trust, a trust set up for the benefit of Reliance Industries Limited, to secure the funding required for this purpose. Further, Mr Bahl will continue to retain the management and 51 per cent control over Network18 and 51 per cent control over TV18 through Network18.

     

    Both the Companies will be filing the Draft Letters of Offer for their respective Rights Issues shortly.

     

    Mr Bahl said: “This is a truly seminal moment in the 18-year-old history of Network18/TV18. By inducting such a significant amount of equity, our balance sheets will become among the strongest in the industry. Also, by acquiring this strategic control over several ETV channels, TV18 will have a bouquet of leading television channels. Riding on the imminent digital wave, I am convinced that this acquisition is a significant move which will catapult TV18 into the forefront of India’s broadcasting industry. The proposed preferred access arrangement with Infotel Broadband will ensure that our content & services will be available on India’s premier technology distribution platform. On a debt free basis, both Network18 and TV18 hope to strengthen their position in various media segments like news & entertainment broadcasting, consumer internet, digital & print publications, filmed entertainment, home-shopping, e-commerce and other emerging businesses.”

     

    The Board of Directors of TV18 Broadcast Limited (TV18) during its meeting also approved the acquisition of 100 per cent interest in Hindi news channels, namely ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan and ETV Bihar and ETV Urdu channel (ETV News Channels); 50 per cent interest in ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya (ETV non Telugu GEC Channels); and 24.5 per cent interest in ETV Telugu and ETV Telugu News (ETV Telugu Channels).

     

    TV18 will have the Board and management control of ETV news channels and ETV non-Telugu GEC Channels. The Board has approved an outlay of up to Rs 2,100 crores for this acquisition. Legally binding agreements will be executed for this purpose. TV18 has an option to buy the balance 50 per cent interest in ETV non-Telugu GEC channels and an additional 24.5 per cent in ETV Telugu channels.

    Ernst & Young Pvt Ltd acted as advisors for financial and tax due diligence and valuation of the assets. The legal due diligence was carried out by Khaitan & Co.

     

    ETV is among the Top 5 most popularly viewed networks in the country. It was one of the first entrants in the regional markets and the channels have a considerable viewership base. One of the key strengths of ETV channels is their ability to attract and retain loyal viewers.

     

    On a combined basis, TV18 will be offering a unique mix of national and regional channels, catering to diverse genres like Hindi and regional entertainment, general news in English, Hindi and regional languages; business news in Hindi, English and regional languages; music, kids, devotional and infotainment channels.

    Including the soon-to-be-launched services/variants, this combined bouquet of over 25 channels will be the most powerful and potentially profitable TV operation in the country, especially since India’s television industry is on the verge of a digital revolution.

     

    As a part of the deal for acquisition of ETV Channels, Network18 and TV18 have also entered into a Memorandum of Understanding with Infotel Broadband Services Limited, a subsidiary of Reliance Industries Limited, under which the companies and their associates will have the right to distribute the content of all the media and web properties of Network18; and programming and digital content of all the broadcasting channels (including the ETV channels being acquired by the company) through 4G Broadband Network of Infotel, which shall have preferential access to this content on a first right basis as a most preferred customer.

     

    Infotel Broadband Services Limited is setting up a pan-India world class broadband wireless network, using state of the art technology. As per Images Year Book, more than 70 per cent of India’s population is below 35 years, and 50 per cent of the population is below 25 years of age. This young educated population will be keen to access quality content through wireless devices, thereby ensuring a rapid growth in subscribers similar to the growth of tele-density in India during the last ten years.

     

    The key advantage for millions of viewers will be the ability to enjoy an uninterrupted, high quality, 24-hour viewership, even while they are on the move. This tie-up with Infotel will enable Network18 and TV18 to build on their first-mover advantage for the distribution of their content through the latest broadband technology.

     

  • Cable TV companies Den Networks and Hathway Cable & Datacom will launch a joint campaign beginning with Delhi this weekend, informing consumers about the need to install set-top boxes by June 30.

    Den, Hathway join hands to sell set-top boxes

    By Meenakshi Verma Ambwani

     

    Cable TV companies Den Networks and Hathway Cable & Datacom will launch a joint media campaign beginning with Delhi this weekend, informing consumers about the need to install set-top boxes by June 30 as mandated by the government.

     

    The top two multi-system operators (MSOs) will also launch their set-top boxes at a promotional price of Rs 799, including installation charges and taxes, which is much lower than Rs 1,500-1,600 charged by the direct-to-home or DTH operators.

     

    As per initial estimates, the two companies are expected to spend Rs 20 crore on the campaign. Households in New Delhi, Mumbai, Chennai and Kolkata will have to buy set-top boxes before June 30 to watch television channels, as per the government’s plan to digitise the country’s cable TV network by 2014. Both houses of Parliament passed the Bill to this effect last month.

     

    “Consumers need to start buying the set-top boxes to access digital signals and this is a joint effort by two like-minded companies to make the consumers aware about digitisation,” said Mr SN Sharma, CEO of DEN Networks. The company expects to install between 2 and 2.5 million set-top boxes in the four cities. “The initial goal will be to upgrade our existing subscribers in these cities to digital addressable system. Only if we have surplus boxes will we look to add new subscribers,” he said.

     

    Hathway expects to deploy about 2 million set-top boxes in the four cities by the end of the first phase. The two companies are planning to rope in other MSOs for the campaign partly to share costs and fend off competition from DTH players. “This is an educational campaign and we think it’s best if all players come together to share costs and promote digitisation,” said Mr K Jayaraman, CEO, Hathway Cable & Datacom.

     

    Source:The Economic Times

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

     

  • Industry executives and experts believe the consolidation trend will pick up momentum in 2012, separating the men from the boys in this highly splintered sector that is being increasingly hobbled by cost pressures and revenue challenges in a slowing economy

    Recent deals point to consolidation in media, say experts

    By Ravi Teja Sharma & Meenakshi Verma Ambwani

     

    Purveyors of news are rarely objects of news themselves, but India’s splintered media landscape has made news in the past two weeks. A flurry of deals or talk of more similar transactions have stirred up the sector in recent days, putting the spotlight on the possible motivations and some crystal ball gazing on what lies ahead.

     

    Last week saw a little-known chemical and fertiliser company Oswal Green Tech buying a 14.17per cent shareholding in New Delhi Television (NDTV) through two block stock market deals. Media reports said Mukesh Ambani-controlled Reliance was looking at buying into Network18, which runs CNBC India. Before him, younger brother Anil’s firm Reliance Capital increased its shareholding in UTV News, which runs Bloomberg TV, by buying out UTV founder Ronnie Screwvala’s 66 per cent stake.

     

    Industry executives and experts believe the consolidation trend will pick up momentum in 2012, separating the men from the boys in this highly splintered sector that is being increasingly hobbled by cost pressures and revenue challenges in a slowing economy.

     

    With more than 700 television channels in India and only few making money, experts believe consolidation in the industry is inevitable.

     

    “Consolidation has to happen. It is required,” said Mr Haresh Chawla, who recently announced his resignation as group chief executive officer of Network18 and Viacom18 after leading the company for more than a decade.

     

    One major problem for the industry is that it has been too dependent on advertising revenues, while subscription revenues have been elusive.

     

    Analysts say some signs of consolidation are already visible, as media companies cobble together bouquets of channels.

     

    “It is already starting to happen and going forward, media companies will look at building a portfolio of broadcast assets across genres, geographies and languages to create a national setup,” said Mr Jehil Thakkar, head of the media and entertainment practice at KPMG.

     

    The move towards regional channels, spread across geographies and genres, is triggered by the high growth in advertising revenues in the segment. Growth in advertising revenues in big cities has been around 12-13 per cent even in good times because of an inventory overhang, while regional advertising has been growing at more than 20 per cent for the last few years, say analysts.

     

    Analysts say this could explain why Network18 may be looking at Eenadu TV. “Network18 does not have any regional channels in its portfolio. This move will give them an entry into the fast growing regional market,” said one analyst. Buying Eenadu TV could give Network18 a bouquet of 11 regional channels.

     

    What may also be attracting new investors such as the Ambanis and foreign media companies such as Walt Disney is the promise of higher revenues and growth as the full benefits of digitalization kicks in. Collateral benefits of media ownership include access to content sources to power non-media business and potentially even some influence.

     

    In the case of Reliance Industries, which is setting up a national 4G broadband service, ownership of a media company will give it an edge over competition, with access to exclusive content from a bouquet of channels as well as web properties.

     

    The Cable Television Network (Regulation) Amendment Act, enacted two weeks ago, could help subscriptions finally become a good source of revenues for media companies, reducing their dependence on advertising. Today, a viewer pays as little as 50 paise to watch an hour of TV. Even this revenue does not reach the channels completely because of under-reporting by local cable operators.

     

    “This (the digitalisation law) will be a game-changer for the television business if well executed,” said Mr Sunil Lulla, managing director and chief executive officer of Times Television Network, which runs Times Now, ET Now and Movies Now channels.

     

    Meanwhile, some deals have already happened in the non-news segment, in anticipation of large changes in the sector. In July this year, Walt Disney Co said it is buying out rest of the 49.56 per cent stake in UTV Software Communications that it does not own from public shareholders and other promoters of the company for Rs 2,000 crore.

     

    “There is clearly a need for sellers to look at strategic investors. For the buyers, in the long term there is value in Indian media,” said Mr Nikhil Vora, managing director and head of research at IDFC Securities.

     

    India’s entertainment and media industry is estimated to grow at a compounded annual rate of 13 per cent to Rs 1,19,890 crore in 2015 from Rs 64,600 crore in 2010, PwC’s India Entertainment and Media Outlook for 2011 revealed earlier this year.

     

    The sector’s woes, notably because of high costs and low subscription revenues, coupled with the general weakness in the markets have cast a dark shadow over media stocks. The market value of NDTV stood at Rs 171 crore on December 21, 2011, the day Oswal Green Tech, formerly Oswal Chemicals & Fertiliser, acquired its stake for around Rs 24 crore.

     

    The company was worth Rs 215.66 crore on January 3, 2012, Rs 552.5 crore at the beginning of 2011 and Rs 3,300 crore at its peak in January 2008. Network18’s market value has dropped from Rs 1,540.7 crore on January 1, 2011, to Rs 535 crore as on January 3, 2012, while that of TV18 has dropped from Rs 2,122.4 crore to Rs 1,220.13 crore in the same period.

     

    The sector trades at price earnings multiple of 18.3 compared with nearly 19 for the telecom sector or 21.43 for the technology sector.

     

    While digitalisation will help increase subscription revenues and remove capacity constraints, it will also aid the process of consolidation in the sector by forcing smaller regional channels into the embrace of larger, pan-India players. Smaller regional channels are enjoying better advertising growth today, but after digitalisation they could face problems in getting themselves well placed in the line up of channels and may feel the need to be aligned with larger players either by selling out or through a distribution deal.

     

    “Larger players with a bouquet of channels will have more bargaining power with cable operators. Smaller channels will find it difficult to get into prime tiers,” said Mr Chawla.

     

    With valuations low, experts feel now may be the time for consolidation. “The overall multiples for media companies have been low for a while. This is a good time to buy. Broadcasting does present a good opportunity,” said Mr Thakkar.

     

    Source: The Economic Times

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

  • Ranjona Banerji reviews the content on news television and the morning papers

    Kejriwal’s TOI article: same old same old

    By Ranjona Banerji

     

    Arvind Kejriwal has reached out to fellow Indians in a plea in The Times of India today. The front page of The Times of India says ‘Team Anna confused, does not know the way forward’. It quotes from an article which Kejriwal has written for the paper. But while the front page report talks about the “apparent” confusion in Team Anna, especially after it has been attacked for going after the Congress while being soft on other parties, Kejriwal’s article is, in fact, the same old same old. He does not talk about the Mumbai debacle; he adds a throwaway line about the BJP and corruption but concentrates the article on the perfidy of the Congress.

     

    Anna Hazare’s ill-health, he conjectures, had more to do with the bad Lokpal bill presented by the government than anything else. If one can venture an opinion, it is this single-minded insistence on attacking only the Congress which has worked against Team Anna. If it loses media sponsorship, it might find the way forward a tad tough. Kejriwal has asked concerned citizens for ideas on how the movement should proceed. It will be interesting to see those suggestions.

     

    Meanwhile, Hazare’s health remains a matter of concern, with most newspapers and channels focusing on it. TV continues to target members of the anti-corruption movement. The BJP is not the flavour of the week at the moment and if you do not come out strongly against it, then TV will not forgive you – this week at least. This leaves the leaders of the anti-corruption movement floundering a bit since they have not had their core committee meeting to decide on what to do yet! Till the triumvirate speaks, all are lost!

     

    * * *

     

    The Indian traders who were detained/ tortured/ attacked in China got so much play on TV that newspapers have started giving the incident more attention. Of course, newspapers have the advantage of setting aside nationalistic outrage and looking at the larger picture. Which includes: other traders not wanting to stop going to that part of China since stuff there is cheap and China requesting Indian traders to follow their laws! This makes for a much larger and more complicated story.

     

    * * *

     

    Inflation is down the newspapers tell us and interest rates may be cut as well. Presumably, this is good news.

     

    * * *

     

    Will Friday night and Saturday morning be all about slamming the Indian cricket team for its dismal performance so far in Australia? I’m not a fortune teller but my crystal ball says that heavy weather is approaching for MS Dhoni and company!

     

  • Of the total 18 ads brought up, many are claims by home shopping networks which are under the scanner.

    ASCI upholds complaints against 10 ads in Sept-Oct 2011

    By A Correspondent

     

    During the months of September and October, the Consumer Complaints Council (CCC) of the Advertising Standards Council of India (ASCI) upheld complaints against 10 advertisements, most of them being products of home shopping networks. During the same period, the CCC dismissed complaints against eight advertisements.

     

    TVC Sky Shop Ltd. released an advertisement for Sandhee Suddham Oil which made claims of ‘Immediate relief from joint pain (Arthritis) -100% effective; effective ayurvedic treatment to get relief from knee pain, all joint pain and arthritis; increases the flow of joint fluid; repairs and strengthens the damaged tissues to make your joints strong and give quick relief from pain and swelling and solves all your joint pain problems’. The claims had to be substantiated with technical data through clinical research and appeared to be gross exaggerations. They portrayed that the product, inclusive of its ingredients, possessed special properties, which were not yet proven scientifically. This was likely to lead to grave disappointment in the minds of the consumers. The complaint was upheld.

     

    GTM Teleshopping Pvt. Ltd’s advertisement of Divyarishi’s Kuber Kunji claimed ‘Kuber Kunji will protect you if you are continuously in debt, if your money is spent as soon as you earn, if you have to struggle for anything in life.’ In another advertisement of Badha Mukti Yantra, the TVC suggested that ‘All of a sudden the happiness of your family disappears, your shop and business goes into a loss, if you come under the spell of black magic, then Badha Mukti Yantra is the cure/solution.’ One more complaint was made against the Shani Shubh Yantra advertisement which claimed ‘Shani Shubh Yantra will protect you from your business failing, from your marriage being on the rocks, from you not getting interview calls for a job, from marriage proposals for your beautiful daughter breaking down.’ The TVC for AAA Teleshoping Pvt Ltd’s Maha Dhan Laxmi  Yantra encouraged the use of this product for ‘procuring the blessings of Goddess Lakshmi and better finances and assets.’ The TVC claimed that the Maha Dhan Laxmi Yantra has miraculous powers to provide financial advancement and stability to the consumers. In all the cases, the CCC concluded that, in the absence of any response from the advertiser, the claims made in the advertisements and cited in the complaints, were not substantiated and were likely to cause widespread disappointment in the minds of the consumers. The complaints  were upheld.

     

    In a complaint against Skymall/ Global Skyshop’s Sai Darshan Pendant, it was stated that the TVC encourages the use of this product for procuring fame, better finances and assets. The TVC professes different stones for different sun signs. The TVC claims that ‘Sai Darshan pendant has miraculous powers to grant everything one wants in life.  The product is said to have the blessings of Sai Baba.’ The CCC concluded that, in the absence of comments from the advertiser, the claims made in the advertisement and cited in the complaint, were not substantiated and were likely to cause disappointment. The complaint was upheld.

     

    Bharat Business Channel Ltd’s Videocon d2h advertisement claimed that ‘Videocon d2h is the No.1 DTH service.’ This claim was in clear contradiction of the fact, since Videocon is neither the oldest nor largest DTH service provider nor does it provide  the largest number of channels.  Moreover, no survey or study was conducted in the market which has given such “No.1” rating to Videocon. The advertisement was seen as being false and misleading. The CCC concluded that the claim was not substantiated with data or independent market research.  The complaint was upheld.

     

    Shri Lal Mahal Empire Basmati Rice’s recent advertisements also came under the CCC scanner with their claims on ‘Fat and Sugar Free Rice.’ The website claims, ‘Empire Basmati rice is India’s first sugar free, fat free rice with no cholesterol content’ while the TVC claimed the product to be ‘Sugar and fat free’. As per the complaint, being free of sugar, cholesterol and fat are general characteristics of rice, and are not limited to a particular brand. Moreover, rice is produced naturally, so one can’t change its nutritional value without genetically engineering the crop. These claims had to be substantiated with data from an independent scientific research. The CCC concluded that the claim was not substantiated and hence was misleading. The complaint was upheld.

     

    TVC Sky Shop Ltd’s advertisement of Dr. Slim Tea claimed that ‘Lose weight with a cup of Herbal Tea; Ayurveda offers a comprehensive approach to tackle this lifestyle disease; Dr. Slim Tea is a premium blend of therapeutic herbs like Garcinia, Gymnema, Licorice, Ocimum, Pippali, Marich and so on, formulated to boost your metabolism and digestion, improve your immune system and shed kilos of extra fat, weight and inches and you will feel a noticeable effect from the first cup of Dr. Slim Tea.’ It was stated that these claims needed to be substantiated with technical data based on an independent clinical research. In the absence of comments from the advertiser, the CCC upheld the complaint.

     

    There was a complaint received against the TVC of Popular Finance – Gold Loan, which is said to have appeared on Asianet TV. As per the complaint, the TVC claimed that Popular Finance is ‘India’s No.1 Gold Loan Company.’ It was stated that this claim is false, as Muthoot Finance isIndia’s largest Gold Loan company(in terms of Gold Loan Portfolio source, ICRA Management Consulting Service Ltd – IMACS report on Gold Loan Market inIndia). The CCC concluded that the claim, “India’s No.1 Gold Loan company” was not substantiated, and complaint was upheld.

     

    During these two months, the CCC received complaints against Idea 3G, Maruti Stepney, Lilliput Kidswear, Expert Dishwash Bar, Ceat Tyres, Tata  Docomo Mobile  Network, Mankind  Pharma  Ltd’s Manforce  Condoms and Max New York Life  Insurance amongst others. As these advertisements did not contravene ASCI’s codes or guidelines, they were not upheld.

     

  • Reliance Broadcast Network and CBS Studios International complement JV portfolio with dedicated international Punjabi channel

    BIG CBS goes balle-balle with Spark Punjabi

    By A Correspondent

     

    The BIG CBS, a Reliance Broadcast Network and CBS Studios International complement JV, on Tuesday announced the launch of its fourth channel, Spark Punjabi, marking its foray in regional television.

     

    The BIG CBS has already launched three channels – BIG CBS Prime, BIG CBS Love and BIG CBS Spark. The JV is the number one English entertainment network in the country.

     

    Spark Punjabi, a category creator, is positioned as the first international Punjabi channel. It will be launched on January 14. Targeting the 15+ audience, the channel will feature the best of CBS content, dubbed in Punjabi, giving local audiences immediate access to world class entertainment.

     

    The channel will be available across Punjab, Haryana,Chandigarhand Himachal Pradesh (PHCHP) region. The channel will be distributed on digital and analog platforms, with an extensive reach of over 6mn+ C&S households in the region.

     

    Spark Punjabi will air the latest seasons of international shows such as jerry Springer, Hawaii Five-O,America’s Next Top Model, Masked Warriors – an international wrestling format, amongst others, dubbed in Punjabi. The channel will also feature a judicious mix of Punjabi music, international dubbed movies and local programming in Punjabi.

     

    The PHCHP is one of the richest regions and boasts of a strong base of affluent consumers. With 78 per cent TV penetration and 88 per cent C&S penetration, coupled with limited local language entertainment options, the market offers a good business opportunity. The Rs1,200 crore advertising pie also creates an exciting opportunity for this platform.

     

    With Reliance Broadcast Network Ltd’s (RBNL) existing leading radio brand 92.7 BIG FM, reaching 22 cities in the region and its OOH arm, BIG Street’s 3000+ ambient media options across the markets, Spark Punjabi will offer marketers an integrated media opportunity like none other in the region.

     

    The channel will be supported by an integrated marketing plan leveraging multi-media. Added to this will be the media muscle of the entire Reliance Group.

     

    Tarun Katial, CEO, Reliance Broadcast Network Ltd. said: “India’s booming regional television industry with limited regional entertainment options is an opportunity that we are leveraging. With our robust radio network in place, Spark Punjabi will allow a more integrated offering to marketers, while presenting audiences with the best television entertainment.”

     

    Armando Nuñez, President, CBS Studios International said: “The move into the regional market perfectly complements our existing bouquet of channels in India, utilizing existing programming resources customized to the Punjabi market and backed by Reliance’s great media assets in the region.”