MxMIndia

Category: NEWS

  • The idea is to not just create a platform for young talent, but to also actively look for the unique, different and gifted

    Lowe Lintas to host 10th Portfolio Night

    By A Correspondent

     

    Lowe Lintas and Partners has once again come in support of Portfolio Night, which in its simplest form is, a platform for young creative aspirants to have their work sampled by at least three top creative directors from the industry in one evening. In the process, they not only get feedback and advice, but if they are good enough, they might land up a job as well. It is conducted on the same date in more than 20 cities all over the world every year.

     

    Organised by IHAVEANIDEA globally, as an industry event, it has been growing over the past few years with a lot of young creatives looking forward to it. Since 2003, it has taken place in 56 cities and 35 countries around the world. Over the past nine years, over 11,000 young copywriters, art directors and designers have taken part in it all over the world. And over 2,800 Creative Directors have given their time to participate in Portfolio Night.

     

    Mumbai has been a part of this event since last two years and this is the third year that it is being organized in the city. Given the significance of encouraging and motivating new talent in the industry, the mantle of organizing Portfolio Night in Mumbai has been taken up by Lowe Lintas and Partners this year on May 23 at the Four Seasons in Worli.

     

    With 25 top CDs from the industry slated to attend and review the work of young, enthusiastic creatives, this highly anticipated evening will unite advertising and design communities in every continent as the next generation of creative talent makes an exciting foray into the industry.

     

    The idea is to not just create a platform for young talent, but to also actively look for the unique, different and gifted. It acquires tremendous significance as there are limited opportunities for the young creatives to discover opportunities in the industry. This is one way with which they not only get one but three opportunities in one evening.

     

    And while one may think that he or she is talented enough to be in an agency, the reality of what agencies and Creative Directors look for may be completely different. Part of the attraction is thus the opportunity for young aspirants to get valuable advice and perspectives as well, from some of the well-known and established CDs who have gone through the grind.

     

    Arun Iyer, NCD, Lowe Lintas and Partners, said: “Hosting Portfolio Night is one way for us at Lowe Lintas and Partners to give back to the community. We would want young creative guys to come in and get the chance to talk to some of the best known CDs in the country. It’s only when you sit in front of someone who has the experience and the maturity that you understand what’s frivolous and what’s really important in a given context. Portfolio Night is thus the right opportunity to get a Reality Check.”

     

  • Kolkata remains the only big market where Radio City is not present, thus the sales alliance allows Radio City to extend its sales reach to Kolkata as well

    Radio City renews sales alliance with Friends FM

    By A Correspondent

     

    Radio City, the FM radio brand promoted by Music Broadcast Private Limited (MBPL) has renewed its strategic sales alliance with the Kolkata based Friends FM, the FM radio arm of ABP (Ananda Bazar Patrika) for another one year term. The strategic sales alliance between the two stations has completed nearly three years.

     

    Of the 20 cities, Kolkata remains the only big market where Radio City is not present, thus the sales alliance allows Radio City to extend its sales reach to Kolkata as well. Besides Friends FM, Radio City is also in sales alliance withGwaliorbased FM radio station, Suno Lemon.

     

    Speaking to MxMIndia, Ashit Kukian, COO (Chief Operating Officer), Radio City said: “Strategic sales alliance has worked for us. We are already in our third year of strategic sales alliance with Friends FM and have, in fact, renewed it again. It helps a single station to sell their brand nationally because it is very difficult to sustain the cost of placing people nationally. As for Radio City , this alliance helps us reach out to a critical market – Kolkata where we are not present. Besides Friends FM, we also have a strategic alliance with Suno Lemon inGwalior, and once the third phase is rolled out, we will strategize how to reach out to rest of the markets.”

     

    Radio City had recently announced its decision to increase its ad rates by 15 to 20 per cent, which it believes will result in better ROI for its clients. Some of its telecom clients include Tata Docomo, Vodafone, Idea, and Airtel, while FMCG, Consumer Durables, Automobiles, Realty Estate and media are some other advertising categories that advertise on radio. The retail versus national advertising ratio in Radio City is currently around 35:65 per cent – 35 per cent from retail and 65 per cent from national advertisers.

     

    Currently, Radio City is present in 20 cities namely, Mumbai, Delhi, Bangalore, Chennai, Ahmedabad, Pune, Hyderabad, Lucknow, Jaipur, Vadodara, Surat, Sholapur, Nagpur, Sangli, Coimbatore, Vizag, Ahmednagar, Akola, Nanded and Jalgaon.

     

    In the last couple of years, Radio City is said to have established and rolled out a lot of 360 degree marquee campaigns. Following the season one success of its property, Gully Premier League (GPL), Radio City is back with the Season 2 of GPL. Season two of the GPL is said to have already registered more than 14,000 teams for the tournament. Mr Kukian also pointed out that BTL (Below the Line) activations which has been witnessing growth over the years, have contributed significantly to the overall revenues of Radio City : “Our BTL activations have also been growing from strength to strength, moreover our activations last year contributed significantly to our overall revenues. From a radio industry perspective, BTL activations could be around 12 to 15 per cent of the overall revenues, whereas the BTL activations of Radio City alone contribute around 10 to 12 per cent of its overall revenues.” Therefore we are very much in sync with the contribution of BTL activations in the overall revenues.

     

    Mr Kukian was also of the view that besides FTCs, a radio station, and Radio City in particular, has multiple sources of revenues, activations and on ground propositions are a couple of them. He was also of the view that in the long run, he expects to see further growth in the contribution of these other revenue sources in a radio station’s overall revenues. “Since the medium is high on reach and content, customised syndication of content can be another source of revenue for the industry. In addition to this, we can also look at digital content syndication and monitisation as an extended source of revenue for Radio City .”

     

    “As of today, 15 per cent of our revenue comes from other sources but, over a period of time I believe these revenue sources could contribute to around 22 to 25 per cent of the entire revenue,” he added.

     

    Mr Kukian said that 2012 has been the best year so far for the FM station since the last three or four years. He went on to add that Radio City has been consistent in its leadership position in both Bengaluru and Mumbai. In Delhi too, it witnessed an increase in listenership numbers: “According to IRS, Q4 2012 we are ranked first or second across most of the non-metro cities in which we are present in. So from a product perspective, it has been a great year. As far as the revenues are concerned, we have always been doing well, in fact this year we have almost doubled the growth over the market category. Even in terms of talent, we have witnessed consistency in the low attrition rates. And with phase III coming up, we are clear about expanding our network to many more markets and increase our foot print panIndia” he said.

     

  • The portal is part of India.com, founded by Zee Entertainment Enterprises Limited and Penske Media Corporation,USAwith United Internet Germany

    Bollywoodlife leapfrogs into leadership league

    By A Correspondent

     

    Arvindra Singh Kanwal

    Entertainment, perhaps, remains one of the most sought-after domains inIndiafor those seeking to venture out with an online enterprise of their own. Proof of its popularity could be gauged by the presence of umpteen number of Bollywood portals that have surfaced in recent years, and continue to hold fort despite the tough business environment plaguing the outside world.

     

    Amongst the newer lot of entrepreneurs who have made a mark with their product offering is one-year-old entrant, bollywoodlife.com. The portal is part of India.com, founded by Zee Entertainment Enterprises Limited and Penske Media Corporation, USA with United Internet Germany. What is noticeable about bollywoodlife.com is that barely a few months since its launch, the portal went on to lead the category, overtaking some known leaders in the process.

     

    Throwing light on the genesis and journey of the portal so far, Arvindra Singh Kanwal, CEO, India.com, said: “Bollywoodlife.com was launched in May 2011 and follows the theme and design of its very successful parent site Hollywoodlife.com, owned and operated by our JV Partner Penske Media Corporation. Barely a few months since we launched, around November 2011, the website started being ranked as the No 1 Indian movie property in entertainment on comScore ahead of an old established player like Bollywoodhungama.com. It’s been at the top since.”

     

    Emphasising on the growth being registered since then, he said, “On comScore, we have been growing 3 per cent month-on-month, whereas other sites have been flat or negative. We are confident of accelerating this growth as we keep updating our offering.”

     

    Adding on the journey, Mr Kanwal said that most sites at the time they launched were very movie review-oriented. “We focused on content around Bollywood and Southern movie lifestyle. At a time when most portals tend to be biased towards Bollywood or Southern-based content, we pride on offering an offering that is well balanced.”

     

    The credit, according to Mr Kanwal, goes to Ramya Sarma, the editorial head of the portal who brought her own variety of conversational and photo-essay style essence to the product. “This approach has made it a leading destination to follow celebrity actors and entertainment news for style-minded men and women aged 18-35. Over time, we expect to see a spike in the women audience as the editorial style is tilted towards conversations they engage in,” he said.

     

    On what makes his portal unique from the others in the space, Mr Kanwal said that bollywoodlife.com’s uniqueness lies in providing content that is original, showing breaking news in a conversational fashion and having a multimedia editorial approach.

     

    “We also have transaction content sites in Auto, Education andMobilewhere we deliver news in English, Hindi, Marathi and Bengali. We rank No1 to 5 in every vertical category we represent. We expect our mobile offerings that are to be launched soon to take us closer to our vision of beingIndia’s premiere digital and mobile platform.”

     

    Divulging on the reach, Mr Kanwal said that worldwide it reaches around 15 million users per month (as per Google Analytics). “InIndia, we reach 12 million users of which bollywoodlife.com reaches to 2 million users worldwide and 1.6 million users inIndia.”

     

    On the growth strategy for india.com, Mr Kanwal said that, as a portal, India.com is barely 10 months old but is already ranked No 7 (March 2012, comScore) just behind in.com and AOL aggregate sites: “We have grown at a pace of 7 per cent month-on-month versus the market rate of 2 per cent. We are growing faster than all others. In fact in.com is in the negative zone and we should catch up soon going by our current pace.”

     

    On the scope for online players catering to the M&E industry, Mr Kanwal said that currently, the digital entertainment market is not built for local original licensed content. “There are a lot of sites that offer aggregated, undifferentiated and unlicensed content e.g. songs.pk, torrentz and others and this is the reason that advertisers have stayed away from advertising on them. But the time spent in this category is growing versus other media options. Also, internet penetration is expected to grow from 5 to 30 per cent by 2015. So quality content, multiple multimedia formats, time spent and high reach will make us and others who invest in this segment very valuable media assets.”

     

    According to Mr Kanwal, the plan going forward is to be seen as “a premier destination for users in every category that the company is present in.” This is what will make the company stand out and be counted as a “great” product, compared to the other good ones from the lot.

     

  • Report + reactions from Dileep Padgaonkar, Sevanti Ninan, Paranjoy Guha Thakurta & Sucheta Dalal

    Apology + Rs 500cr: Is Indian Express right in sending Open a legal notice?

     

    By Pradyuman Maheshwari and Shruti Pushkarna

     

    Shekhar Gupta

    It was the most read story on MxMIndia yesterday. As the news of the legal notice served by a lawyer representing Indian Express, Shekhar Gupta and three others filtered in, there were heated discussions in newsrooms on whether the Express and its legal eagles were right in serving a legal notice to Vinod Mehta, Open and its senior staffers.

     

    First some background. On April 4, The Indian Express carried a story by editor-in-chief Shekhar Gupta with Ritu Sarin and Pranab Dhal Samanta on two key army units moving towards New Delhi without informing the government. Ajmer Singh contributed to the report.

     

    Vital Links
    The Indian Express report (April 4, epaper)
    The Open interview (April 21)
    The ‘notice’ (May 15, note: source unverified and unknown)

    There was outrage and denials issued by all and sundry in the government and armed forces. However, save the outbursts, it wasn’t proven that the Express story was incorrect.

     

    Meanwhile, ever since the report appeared, The Indian Express – while still respected as a no-nonsense, credible newspaper – was the butt of ridicule by commentators and on social networks. Those in print may have been a lot more gentle, but a few television discussions were indeed scathing.

     

    And then came this interview with Outlook’s editorial adviser (and former editor-in-chief) Vinod Mehta in newsmag Open on the issue. The headline of the interview said it all: The Mother of All Mistakes (issue dated April 21, 2012). In his inimitable style, Mr Mehta suggested that Mr Gupta was taken in by a story that was planted on the Express.

     

    While a magazine has a limited readership, since the article was freely available on the internet and it carried a very pointed allegation by one high profile editor on another, the interview viralled in the media fraternity a great deal.

     

    This legal notice by a lawyer representing The Indian Express and the four writers of the story – Shekhar Gupta, Ritu Sarin, Pranab Dhal Samanta and Ajmer Singh – came less than a month of the publication of the interview.

     

    One would’ve let the notice be, but its contents make for interesting reading. So while Mr Mehta may be suggesting in the interview (and he also said  amidst some cheer at the Press Club Bombay awards recently) that he quit the Independent owning moral responsibility of an incorrect story, the notice points out that in his memoirs (Lucknow Boy), he projects that he was compelled to do so. “Till now, I am unsure why I had to quit.”

     

    The notice asks for an apology and pulling the story off Open’s internet edition openthemagazine.com. At the time of filing this report, Open hasn’t done either and two senior staffers told MxMIndia that the magazine does not intend to do either.

     

    The notice also demands damages of Rs 100 crore each to the lawyer’s clients. That’s five of them – the Indian Express, Shekhar Gupta, Ritu Sarin, Pranab Dhal Samanta and Ajmer Singh. The Rs 500 crore damages have to be paid regardless of the apology.

     

    MxMIndia asked a few senior editors for their views on the issue. While many of them did not want to be drawn into the controversy, there were a few who told us that they didn’t know enough of the matter to be able to comment.

     

    Our questions were: Is the media too sensitive to criticism? Just as the Express, Shekhar Gupta & Co sent a legal notice to Open and Vinod Mehta, can governments, politicians, businesspersons and even film-makers who are critiqued by the media also send notices and ask for crores as damages?

     

    Here are reactions from four veteran commentators:

    Dileep Padgaonkar

    Dileep Padgaonkar, former editor-in-chief, The Times of India:

    Of course it is… the media is sensitive to criticism. The media thinks it is fit to criticise everyone but the minute everyone points a finger at the media, the media bristles. I think media should take criticism directed against it in its stride, this is part and parcel of democracy. And I don’t think one should be too prickly in these matters unless of course there is a clear case of personal attack, defamation… in that case legal course is available but otherwise one should ignore these things and go on.

     

    As it is, the censorship of cartoons was a dismal warning of the sensitivity of the political establishment. Now if media is going to go at another section of media, there is going to be a free-for-all and the big casualty out here would be good, decent, honest journalism.

     

    Sevanti Ninan

    Sevanti Ninan, editor, The Hoot, columnist and media-watcher:

    Criticism is not an accurate word for what Vinod Mehta called The Indian Express story. He essentially said it was a planted story and it was a huge mistake to carry it. Considering that the first byline on the story was that of the chief editor, that is quite statement to make. You are saying the chief editor and his colleague are susceptible to plants, thereby seriously questioning their credibility. So I guess the Express could hardly ignore it. IE did come in for a lot of criticism on the import of the story and the display given, including a critical editorial in the Hindu but nothing quite as damning as Mehta’s statements.

     

    This is the 3rd 100 crore notice involving the media over the past year, in any case. So it is becoming more common.

     

    Paranjoy Guha Thakurta

    Paranjoy Guha Thakurta, independent journalist and commentator:

    I think The Indian Express has over reacted. I think it’s gone a little over the top. They may disagree with what Vinod Mehta has said… my personal view is that it’s a point of view which obviously the Express doesn’t agree with but I don’t think that what Mr Mehta has said can be construed to be criminally defamatory. And the kind of damages sought are excessive. They are as excessive as the damages that Justice Sawant has sought from Times Now and what Times Now has sought from TheHoot. I mean these are ridiculous sums of money.

     

    I think we’ve become an extremely intolerant society. I think people talk about freedom of expression being a fundamental right but I don’t think people are really believing in Article 19(1)A of the Constitution of India. Like so many sections of Indian society, including our political leadership which is very upset about these political cartoons that have appeared in textbooks, I think even sections of the media are becoming extremely intolerant of criticism. If you are in a democracy, you have to give the right to everybody to disagree with you.

     

    Sucheta Dalal

    Sucheta Dalal, senior journalist and commentator, consulting editor, Moneylife:

    Well, not the media, but The Indian Express is too sensitive to critcism… It’s an interesting thing, it’s the first time it is happening and we should see where this goes, whether they follow through by actually filing a case. It’s the first time that somebody in the media is suing another person in the media, we need to look at how it goes… as I said everybody else is sensitive, everybody else does send defamation notices but I don’t know how many of those notices actually get converted into legal action. So we have to wait and watch.

     

    Otherwise the notice is also a way of making a point, it’s a way of putting pressure. It’s not just Vinod Mehta, if he looks at what was said about that story on the social media, then there are a lot more people that they would probably need to sue. So maybe he is making a case out of Vinod Mehta and Open magazine, we need to see whether they follow through. I would say that the test is not in the legal notice, the test is in seeing whether they are actually going to follow through, stand in court and argue it out.

     

  • This year, the show will focus on 'Idols behind the Idol': follow the journey of the Idol and the people who have played a role in guiding them

    Indian Idol 6 to use drama & emotions for a connect with viewers

    By Meghna Sharma

     

    Music is something that almost every Indian can relate to. So, when in 2004, a reality show was launched which gave the people a chance to show-off their singing talent, the whole country lined up for auditions.

     

    Today that very same reality show, Indian Idol, is getting set to launch its sixth season. From June 1 on Sony Entertainment Television. The show had opened with average TVR of 6.9 in its first season whereas the last season got an average TVR of 2.0. According to Chandradeep Mitra, managing partner, Anvention, the main reason why reality shows lose their audience over years is stagnation: “After a while, one does get bored of watching the same genre of shows. It has happened to a lot of shows, be it KBC or IPL. Also, there are a lot of similar shows on other channels. So, there is a natural decay.” He further explained: “With more and more channels coming up and new genres being experimented, there is division of audience too.”

     

    Danish Khan

    Danish Khan, senior VP and Marketing Head, SET, is optimistic about the upcoming season and feels that every season has to have a unique hook to catch audience’s attention. “We are doing our best to come up with a delight for our audience. I agree that there are a lot of reality shows, so differentiation becomes important to stand out of the clutter.”

     

    This year, the show will focus on ‘Idols behind the Idol’: “We thought of going back this year and focus on how ‘nobody’ becomes a ‘somebody’. We’ll follow the journey of the Idol and the people who have played a role in guiding them to reach that position. So, there are a lot of drama and emotion this time, and we are hoping that it will touch the audience. And help us get good ratings,” Mr Khan said.

     

    However, Mr Mitra feels that for this genre to work well, the show must have quality talent and should be able to use social media well to promote it which will help to create awareness about the show.

     

    The channel will launch the show after the IPL. “It is a deliberate move and we have used the IPL to build the show through various promotions. We have used 360 degree marketing strategy to market the show,” said Mr Khan.

     

  • The truth is that internet is a great medium for consumers, and it is a great medium for small and medium enterprises to build their business, feels Mr Oberoi

    Internet as a media has arrived: Hitesh Oberoi

    Hitesh Oberoi is  Chairman- IAMAI and CEO and Managing Director, Info Edge. In conversation with MxMIndia’s Robin Thomas on the sidelines of the IAMAI’s marketing conclave recently, Mr Oberoi spoke about the changing dynamics of internet and mobile in India, the trends to watch out for and much more.

     

    For long we have been referring to internet as a new medium. Would you still regard the internet as a ‘new’ medium?

    I don’t think internet is a new media any more, but a media which has arrived. There are already more than 120 million online users and this number will grow to 400 million in the next three to five years. Therefore, I don’t think internet is a new medium any more nor a medium that can be ignored.

     

    Has there been a shift in perception over the years among advertisers about the internet and mobile as media vehicles?

    Advertisers are definitely taking the internet a lot more seriously today simply because of the growing number of online and mobile users. With the kind of targeting options and the kind of measurement options, the internet offers have brought more and more advertisers on board. In addition to this, the internet is not only one of the cheapest medium to advertise but, also provides better ROIs to advertisers. So certainly these are some of the factors leading more advertisers to the internet.

     

    What about a credible measurement system? Why do we lack still one today?

    There are some challenges, there are different methods used by different measurement providers but, I think they realize that internet is getting big in India and are, perhaps, working towards a better measurement system. So very soon we should have a credible measurement system in India.

     

    What according to you are the opportunities and possible threats or challenges that 3G and 4G services could have for mobile advertising in India?

    As the internet grows faster, people will spend more and more time on the internet. Penetration and the speed of access are the two things needed for bringing in more people to mobile internet. What 3G and 4G will do is, improve the speed of access and when the speed of access increases, a user will be able to download content faster. So, a combination of faster internet on mobile, quick downloads, and good quality content and so on will lead mobile internet to a different level altogether.

     

    And the lessons that India can learn from their international counterparts on internet and mobile advertising?

    One thing we should be investing in is the internet economy. The truth is that internet is a great medium for consumers, and it is a great medium for small and medium enterprises to build their business. Internet is a great leveler of the two India’s (urban and rural). Just as the telecom revolution which has led to people being empowered, the same could happen on the internet. So, I think the lesson we can learn from the United States and China is that we need to invest more and more in broadband and we need to make it cheap for people, so that many more can get onto the internet.

     

    Any specific trends to watch out for in the digital media space?

    There will be many more people on the internet five years from now, Indians will spend more time on the internet and probably they will spend most of their time online, therefore, marketers cannot afford to not be online. In fact, a lot more access to internet will take place through mobile phones. So while in this phase, more people are accessing internet through their PC or desktop, the next phase of internet growth will come from mobile. Therefore, marketers need to adapt to these changes accordingly. These changes may take a while but, undoubtedly digital is the way forward.

     

  • He will be working on the regional channels which the media conglomerate plans to get into

    Vivek Bahl joins Viacom18 as Network Advisor Content, to work on proposed regional foray

    By A Correspondent

     

    In a move to expand its horizons, Viacom18 has appointed Vivek Bahl as Network Advisor Content. He will be working on the regional channels which the media conglomerate plans to get into. He will also play a strategic role in planning and development of new content.

     

    Mr Bahl will report to Raj Nayak, CEO – Colors and will have a parallel line of reporting to the Regional Head.

     

    Announcing his appointment, Raj Nayak, Chief Executive Officer, Colors said: “Vivek comes with great experience in developing content for different genres and his understanding of the television and entertainment industry is quite phenomenal. We believe he will play a significant role in not only in further developing and strengthening the current content on Viacom18’s offerings but also in the expansion of the network’s upcoming regional channels.”

     

    Mr Bahl has over 25 years of experience in the entertainment industry and a strategic cross-functional perspective. He has worked with leading television networks inIndiaincluding Star TV and Zee TV, where he helped in the development of multiple fiction and non-fiction properties including Antakshari, Banegi Apni Baat, Jassi Jaisi Koi Nahi, Bidaai, Yeh Rishta Kya Kehlaata Hai, Saath Nibhana Saathiya, Saat Phere, Betiyaan, Maayka and Pratigya.

     

    On his new assignment Vivek Bahl said: “Viacom18 is a network that, through its various channels, reaches to multiple audiences across the country. I am extremely excited about this opportunity to help take the content and the network to the next level. I am looking forward to working with the incredibly talented team at Viacom18 and help escalate the properties to reach out to a larger audience across the country.”

     

    Prior to joining Viacom18, Mr Bahl was Chief Content Officer forIndiaat Turner International and overlooked the content strategy and development for Turner’s entertainment brands inIndiawhich included Imagine TV, Cartoon Network, Pogo and Warner Brothers.

     

  • This cricket season, RED FM gives its listeners an opportunity to earn mega cash prizes with Sania Bhabhi

    Sania Bhabhi is back on Red FM

    By A Correspondent

     

    Known for its innovations, 93.5 Red FM has got ‘Sania Bhabhi’, a sensuous housewife who considers all cricketers her ‘dewars’, back this cricket season. Last year, the character was introduced by Red FM Delhi to deliver cricketing content in an interesting and entertaining manner. Sania Bhabhi used to have topical conversations with her dewars, in a way that makes the listeners let loose their imagine.

     

    This year she has come back with her wallet full of cash, nicked from her dewars, up for winning through interesting contests. The concept of the show is that Sania Bhabhi knows that all her dewars have earned big bucks, and now she will share that loot with the listeners. For one specified hour in each show on Red FM, she will declare the amounts she’s taken from cricketers. Listeners are encouraged to stay tuned through the hour to know how much money she has given away. The listener who will declare the correct total amount will walk away with that cash prize at the end of the hour.

     

    The activity has already started from April 4 and will stay on air through-out the IPL cricket season till end of May.  Nearly Rs10,000 will be given out as prizes every day.

     

    The campaign is primarily aimed at getting listeners to listen to the station longer, through which they can win big. As such, the off-air media will focus to touch-points, to generate incremental listenership:

    • Posters in pan shops, other relevant outlets in high visibility areas for the primary demographic
    • Slides, ambient media at PVR
    • Facebook activation, with creative and audio downloads from theDelhipage

     

  • TAM released its mid-week ratings for the six metros with the show garnering a TVR of 3.79 on Star Plus and 0.43 for DD

    TAM releases mid-week TVRs for SMJ

    By A Correspondent

     

    Since Sunday last, when Aamir Khan made his debut on the small screen with Satyamev Jayate, there has been much discussion on the show and how it has established a new dimension to  entertainment television. Albeit only on Sunday mornings.

     

    While the all-India ratings will be out only next Wednesday, those for six metros was released this morning. According to TAM Media, in the All4+ category, the show’s prime telecast got a rating on 4.27 in the six metros for all nine channels. In the C&S4+, overall viewership TVR of the prime telecast was 4.08. In the three Hindi-speaking metros (Mumbai, Delhi and Kolkata), the show got a TVR of 3.79 on Star Plus itself. In the 6 metros (all4+), DD National scored a TVR of 0.43.

     

     

    Pratap Bose, COO, DDB Mudra was disappointed by the ratings. “To be frank, I was expecting a higher rating, so I’m surprised at a 3.79 TVR in the three metros. According to me, the show should have gotten at least a rating of 6 across sections. However, I’m optimistic and hope that as the show progresses, it will be able to do well.”

     

    On the other hand, Ashwini Kamat, GM, MediaCom feels that the ratings are okay since it’s mid-week rating only. “I’m sure the ratings which will come out on the coming Wednesday would be much higher. It would be closer to 4.5 TVR for the three metros.”

     

    Echoing the view that one must wait for the All-India ratings is Sundeep Nagpal, Director, Stratagem Media. “Given the canvas of the issues raised and the multi-channel simulcast across the country, the six-city numbers are probably not the best way to judge the popularity of the programme,” he said.

     

  • With just 44 days to go for the Big Switch in 4 metros, Ashish Pherwani & Devendra Parulekar of Ernst & Young address the key business questions

    So will Digitization mean more Revenues?

     

    By Ashish Pherwani & Devendra Parulekar

     

    It is estimated that India has 127 million C&S television homes, out of which around 32 million are DTH, 7 million digital cable and the balance 88 million analogue cable homes.  The first phase of digitization of analog TV broadcast, which covers the four metro cities – Delhi, Mumbai, Kolkata and Chennai – is mandated to be completed by June 2012, while the entire country is to be digitized by December 31, 2014 when analogue signals will be finally switched off completely.

     

    It is expected that the industry will need to invest around Rs75 billion in the process, and Phase I alone will need around Rs11 billion. This is based on the assumption that the cost of digitization per subscriber will be Rs1,500, out of which around Rs600 will be borne by the customer.

     

    The following present some of the key aspects of digitization:

     

    How does digital cable compare with DTH, the current digital distribution leader?

    Digital cable has the capacity to carry 1,000 Standard Definition (SD) channels and surpasses DTH, which can only carry 250-300 SD channels at present due to limited transponder availability. In terms of technology, digital cable is capable of having a “return path”, which is not possible in the case of DTH. This limits the latter’s scope to provide value-added services and dual play. Digital cable is able to provide a larger number of regional channels, and given the growth of the Indian media sector – fueled largely by regional content – this could be a significant advantage for it.

     

    However, in terms of customer connect, management capabilities and readiness, DTH players have a definite advantage, since while they have had B2C from the beginning, most Indian MSOs still have B2B. DTH players already have in place customer-centric systems and processes, including multi-lingual call centres and field engineer forces.  They understand the implications of running a B2C business, having already implemented subscriber management systems, customer relationship management systems, and so on.  Moreover, DTH players have already invested heavily on building their brands, using ambassadors such as Saif Ali Khan, Aamir Khan, Shah Rukh Khan and Abhishek Bacchan, thereby making DTH an aspirationally more desirable product.

     

    Due to the factors mentioned above, it is expected that there will be a churn of subscribers from cable operators to DTH, particularly in Phase I. While certain MSOs peg this churn at 15 per cent in favour of DTH, DTH players are more optimistic and expect to gain up to 40 per cent of MSOs’ customers. This churn will, however, largely depend up the readiness of MSOs to meet digitization deadlines and also take advantage of the marketing and sales efforts of MSO and DTH players.

     

    Another factor that needs to be considered is Headend in the Sky (HITS).  HITS operators may find it advantageous to assimilate smaller LCOs by becoming their technology service providers and providing them with content as well as SMS, CRM and billing services.  However, this could pose issues for MSOs, who are counting on aligning themselves with such LCOs.

     

    Evolution of the distribution system

    The distribution system comprises four key segments:

    • DTH companies
    • Large national multi-service operators (MSOs) – 5-6 players
    • Small MSOs with a regional presence – around 25 players
    • Small LCOs (local cable operators) – around 40,000 players

     

    Currently, national MSOs have interests in several smaller MSOs and LCOs. This is either in the form of investments or JV agreements.

     

    Going forward, the distribution system is expected to evolve, based on the ability of small players to scale up their operations. Today, the main role of an MSO is to buy content from broadcasters, decrypt it and distribute it to LCOs for last-mile distribution to customers. All customer-facing operations are performed by LCOs, which include billing, collection, repairs and maintenance.

     

    Once digital addressable systems are set up, some of the smaller MSOs or more competent LCOs may decide to provide all services to customers themselves. In this event, they may break away from their parent MSOs, and assisted by funding and systems setups, be in a position to manage their customer bases on their own, and thereby gain a large share of the total subscription revenue generated.

     

    Therefore, we expect that broadcasters may not only be dealing with the big 5 MSOs, but the big 50 MSOs as well in a short time, which would be a definite advantage for them.

    The depth of relationships of MSOs with their JV partners and the LCO community will be critical for a successful national roll-out.  It will determine which and how many LCOs team up with each MSO, as well as the share of revenue an MSO can expect to receive from LCOs.

     

    The entry of pure-play global cable operators such as Liberty and Comcast could result in consolidation of the industry.  The proposed change in FDI limits for all cable distribution to 74 per cent, and the sheer size of the Indian TV market, is sure to interest such global players. PE players have shown a significant interest as well, but appear to have taken a watch-and-wait approach to determine how phase I of the digitization process plays out before deciding on whom and how much they will fund.

     

    How will ARPUs move?

    Given the past as a benchmark, one likely scenario is that the base pack of free to air (FTA) channels is priced at around Rs100 plus taxes.  Earlier indications from TRAI indicated a rate of around Rs83 plus taxes, but given that several channels are expected to opt for FTA in the digital arena, this will probably increase.  The cost of this base pack is, therefore, expected to increase at an inflationary rate of around 8per cent every year.

     

    High growth rates of 10-15per cent are likely to be seen in tier 1 and tier 2 packages, which will comprise most of the popular pay channels, e.g., the GEC and sports channels, and be priced between Rs150 and Rs250 plus taxes.  Premium packages, priced at Rs300-500, and including packages that have a large number of niche and HD channels, will probably grow at 15-20per cent per annum.

     

    Compared to the current ARPU of Rs140 per subscriber, we expect that within two years, the average family cost per TV set will increase to Rs250, inclusive of taxes.  The important factor to note is that households with two or more TV sets (according to estimates as high as 20per cent or more in the four metros) are likely to opt for addressable digital systems, and thereby, increase the size of the industry significantly.

     

    Application of a price cap, either at per channel level or a package level, could prove detrimental to the roll-out of digitization.  The equilibrium brought about by market forces would ensure optimal price points from a customer perspective.

     

    The tax impact could be significant as well.  The so far largely untaxed 88 million analog subscribers will now be subject to taxation, and this is likely to result in an increased cost of Rs25-45 per subscriber per month.  In all probability, this cost (around Rs4,000 crore a year) will be transferred to customers by the industry, and therefore, ability to increase ARPUs may be impacted in the short term.  Therefore, the efficiency of the value chain will be critical in determining the actual incidence of taxes levied on LCOs, MSOs and broadcasters.  The cost incurred to digitize networks also needs to be considered in terms of a one-time write-off or by spreading its impact over several years.

     

    How will ARPUs be shared?

    Honestly, we don’t know.  Today, many LCOs retain up to 85per cent of the revenues they collect from their end customers due to under-declarations made by subscribers, and the balance is split between MSOs and broadcasters in a ratio of 1:2.

     

    Different MSOs are proposing different splits.  Some envisage an equal split between the broadcaster, MSO and LCOs.  Some expect LCOs to retain 50 per cent of the collection, even two or three years down the line (given that it would be difficult for them to give up their revenue share).  According to a recent news article, TRAI is considering a regulation whereby LCOs will retain 70 per cent of the collections.  Some sources indicated that MSOs may guarantee revenues for certain LCOs at their current take-home levels for a year or two.

     

    Eventually, once addressability sets in, the share of revenues is expected to be driven by services provided to the customer.  Broadcasters will get a share for the content they provide; MSOs for their buying efficiency and the technology support they provide;  LCOs a share that is proportionate to the last- mile and customer-facing activities they provide.  If we compare this to the telecom sector, 60-70 per cent of the revenues are retained by telcom, as compared to 90 per cent by MSOs and LCOs.  This percentage needs to come down to global levels, where less than 50 per cent is the share of the distributors.  But this will take time.

     

    How carriage fees are likely to move

    Every business has a cost of distribution, and media is no different.  The cost of carriage will remain, one way or the other, whether as a per subscriber technology, a provisioning cost, a fee to place a channel in a package or as one to position a channel within a genre.

     

    There is likely to be some reduction in carriage fees, since digitization will result in eradication of the artificial scarcity caused by the analogue infrastructure.  However, in the long term, carriage fees are expected to continue in one form or the other .

     

    In all probability, strong channels (and those that are included in much-demanded broadcaster bouquets) will end up paying a reduced carriage fee, and weaker ones will pay a higher amount.

     

    The role of TAM

    TAM is expected to continue being the leading provider of viewership measurement services inIndia, since no method or technology is currently planned in any large-scale STB implementation program or any other system to find out which person in a household is watching which part of which program.  It may be possible to determine how many subscribers have subscribed to a channel by aggregating data from leading MSOs, but that is not a measure of actual viewership.

     

    Alternative business models

    Broadcasters and distributors can now think about implementing channels by using innovative methods to share risks and rewards.  Some such methods could be:

    • Broadcasters selling channels to distributors to exploit these in the form of ad sales and subscription revenues
    • Re-packaging existing channels for local audiences of MSOs and larger LCOs
    • Creating channels based on dubbed content from popular channels, to be rolled out as regional language channels across larger MSOs
    • Broadcasters, etc., distributing specially packaged film or music channels on a revenue-sharing basis

     

    The recent recommendation made by TRAI to limit the total advertising time on pay channels to 6 minutes per hour and FTA channels to 12 minutes per hour could also have a significant impact on the number of channels that continue to “go pay,” should such recommendations become the law.  Such a rule would boost transparency in TV distribution, and given that advertisers would not be willing to pay twice for the same audience reach, would also push up per-channel prices significantly.

     

    Moreover, in addition to regular revenue streams, new ones would emerge for MSOs.  For example, Hathway has demonstrated that it can generate 10-15 per cent of its revenues through broadband, and this could become a service other operators can also begin providing. Video on demand, gaming and niche content could also be provided at local levels.

     

    In summary, although the timeline for digitization is aggressive, the ordinance is a concrete step toward enabling systematic growth in the industry and more equitable distribution of revenue across the distribution value chain. All stakeholders are expected to benefit from the digitization process – transparency generally ensures this. It is, therefore, in the best interest of the industry that all stakeholders ensure that this initiative is implemented in as speedy a manner as possible, and make sure that no political, regulatory or any other road-blocks interfere in the process.

     

    Ashish Pherwani is Associate Director, Ernst & Young & Devendra Parulekar is Partner, Ernst & Young

     

  • The Aditya Birla group has announced an acquisition of 27.5% stake in the India Today group

    AV Birla group buys 27.5% in India Today group

    A Mail Today news article with Aroon Purie with Kumar Mangalam Birla in the photograph

    By A Correspondent

    The Aditya Birla group has announced a financial investment of 27.5% in Living Media India (better known as the India Today group).

    The move has been confirmed by a way of a communique to the stock exchanges. Says Kumar Managalam Birla, chairman, Aditya Birla group, “The media sector is a sunrise sector from an investment point of view. I believe that Living Media India offers one of the best opportunities for growth and value creation.”

    Comments Mr Aroon Purie, chairman of the India Today group, “I am delighted to partner with the Aditya Birla group to aggressively address the current and futre potential of the Indian media business which is at a tipping point. The Aditya Birla group with its strong leadership global footprint, diversified business interests and its shared values of integrity, commitment and social responsibility make it a perfect fit with the India Today group.”

    The transaction is of course subject to the statutory approvals.

  • The seventh edition of India Radio Forum (IRF), organized by Partners in Media Asia (PIM), will be held on May 22 at JW Marriot Hotel in Mumbai

    Industry gears up for India Radio Forum 2012

    By A Correspondent

     

    It is that time of the year, when radio players across the country meet to discuss issues pertaining to the industry, listen to ideas from advertisers and agencies, celebrate creativity in radio advertising and commemorate the medium itself. The seventh edition of India Radio Forum (IRF), organized by Partners in Media Asia (PIM), will be held on May 22 at JW Marriot Hotel in Mumbai.

     

    Amitabh Srivastava, Country Manager – South Asia, Radio Netherlands Worldwide who has been attending the IRF since the last four years and plans to do so this year, explained that radio is still at a nascent stage, thus such forums on radio are good for the industry as it discusses critical issues, it provides a good platform for all stakeholders, and in the long run, such forum on radio will benefit the industry. He further said that in the last four years that he has attended the annual event, he observed that IRF has ensured that every stakeholder participates in the event. He also said that smaller stations have been given their due weightage and their issues have also been discussed at various events.

     

    George Sebastian, COO, Club FM and GM Marketing, Mathrubhumi and Ravindran Nair, Director Programmes, Radio Mango would also be among the attendees at IRF 2012. When asked whether smaller stations have been isolated at the IRF this year, Mr Sebastian said that he has been attending the IRF since its inception and found that even the issues of smaller stations are addressed at the IRF. “IRF used to be a full day event, now it has been reduced to a little more than a half day. This is the only regret I have towards IRF. Such events most certainly benefit the industry, particularly the awards which recognizes good talents.”

     

    Mr Nair of Radio Mango said: “IRF helps maintain the vitality of radio stations, it gives one insights into how radio has developed in other parts of the world; it also provides ideas and new ways to monitise contents as well as gives us the client perspective about the medium. The only irony, however, is that the IRF has been reduced from a two day event to merely one day.”

     

    Unlike previous years, Mr Naval Toshniwal, CEO Tomato FM and Vice President, Pudhari Publications will not be attending the IRF this year. Ms Monica Nayyar Patnaik, Joint Managing Director at Eastern Media Ltd is also among the few industry veterans who would not be attending the IRF this year for personal reasons.

     

    Speaking to MxMIndia, Ms Patnaik was of the view that such forums do benefit the industry as it helps one learn from each other, helps find solutions to overcome issues and challenges, provides creative ideas and that awards also contribute in a bigger way in recognizing ones creative talents.

     

    Another industry player who did not wish to be mentioned was of the view that such events do help the industry positively, however, it all depends on implementing the lessons learnt from the various presentations made and panel discussions. “IRF is a good forum, but the industry must learn to implement what is discussed at such events, which has not happened so far. There has to be an action plan to implement all that is discussed at such events, only then will we see the industry grow even further.”

     

    Anurradha Prasad, President of Association of Radio Operators for India (AROI) and Chairperson cum Managing Director, B.A.G Network will also not be able to attend the IRF this year due to prior commitments. She, however, added that right now everything boils down to the passage of the Copyright Bill in the Lok Sabha. It has already been passed in the Upper House (Rajya Sabha), and once it is passed in the Lower House (Lok Sabha) too, and becomes law, it will significantly improve the growth of the Indian radio industry.

     

    The speakers list at IRF 2012 comprises of industry veterans not only from the radio industry, but also advertisers, and veterans from the creative and media agencies. IRF 2012 will kick-start with the CEO Roundtable, wherein industry biggies will discuss the current strength and weaknesses of the radio industry, and strategic options to improve the business and their vision for the industry in the coming three years. The panelists will include Apurva Purohit, CEO, Radio City; B Surendar, Sr. VP & National Sales Head, Red FM; Harrish Bhatia, CEO, My FM; Harshad Jain, Business Head, Fever FM; Joy Chakraborthy, CEO, Oye FM; Prashant Panday, CEO, Radio Mirchi and Rabe Iyer, Business Head, Big FM. This session will be moderated by Atul Phadnis, CEO, What’s-On-India.

     

    The second session at the forum – ‘It’s the Message, not the Medium: Growing your Advertising Revenues,’ will delve on important creative attributes that make radio commercials more effective and the unique qualities of radio as an advertising medium. Jason Brownlee, Founder, Dollywagon Media Sciences will be the speaker of this session.

     

    Another interesting session at this year’s IRF is ‘Radio and Social Media’, a panel discussion on the effect of social media on the listeners and the radio industry. This session will be moderated by Suman Srivastava, Founder & Innovation Artist, Marketing Unplugged. The panelists of this session include Premjeet Sodhi, COO, Lintas Media Group; Raj Nayak, CEO, Colors – Viacom18; Satbir Singh, Managing Partner and Chief Creative Officer, Euro RSCG; and Tushar Vyas, Managing Partner, GroupM South Asia.

     

    There will also be a session on ‘Maximising Radio’s Asset: How to Gain Share of Market Spend’. This session will be moderated by Apurva Purohit, CEO,RadioCity. The panel members are Ajit Varghese, Managing Director – South Asia, Maxus and Motivator; Arpita Menon, Head – Media Planning & Buying, STAR TV; and Shubha George, COO, MEC. This session aims to provide the client point of view and that of media planners and buyers on radio’s critical role in meeting market challenges and opportunity it presents in achieving a better ROI and sales goals.

     

    ‘The Radio Pitch Challenge’, the last session just before the 2012 ‘Excellence in Radio Awards’, will see planning teams from media agencies invited to pitch a compelling and effective presentation to the judges. Each team will talk about a product or service in five minutes or less. They will present 16 slides with only 15 seconds per slide, ending with a radio promo not more than a minute long. The winning team will be awarded two tickets worth over Rs1,00,000 to the 2012 Singapore Formula1 Grand Prix.