MxMIndia

Category: SPECIALS

  • The role of the Competition Commission in the industry and the need for this umbrella body.

    @FF12: CCI is an overall market regulator: Ashok Chawla

    By A Correspondent

     

    Keynote speaker Ashok Chawla, Chairman, Competition Commission of India (CCI) opened his address by pointing out that the media and entertainment (M&E) industry is one of the fastest growing sectors in India today, with an expected CAGR of 14-15 percent. He attributed this to increase in disposable incomes and aspirational lifestyles.

     

    He said that with digitisation set to come in by July 1, the M&E industry witnessed consolidation which has ensured synergy for players looking for entry. The state has been acting as facilitator, and by not regulating directly, ensuring a balanced growth.

     

    Outlining this scenario, Mr Chawla proceeded to outline the role CCI performs in the industry. He said that CCI is an overall market regulator whose objective is to ensure that market forces operate with transparency and fair play. It has been put in place to identify the boundaries of behaviour of the industry.

     

    Mr Chawla gave an overview of the Competition Act and how it came into force in 2009, in spite of having been passed in 2002. The philosophy of the Act was that with deregulation, there is a need for a body which can look at behaviour and how businesses are conducted.

     

    Mr Chawla said that the Act has a two-fold agenda. It takes a look at, and if necessary action against, activities which are anti-trust and anti-competition in nature. It also ensures that the economic activity is not restricted and freedom of trade is not affected. The main objective is to ensure that the consumer should benefit by the more efficiency.

     

    He said that they keep an eye on the mergers and acquisitions (M&A) in all the sectors. Any M&A which goes above a certain threshold and can have an adverse impact on the market requires the mandatory approval of CCI, he added. The dissenters made to pay monetary penalties.

     

    Mr Chawla also outlined the role that trade associations and bodies should play. He said that rules framed shouldn’t inhibit non-members as it could be anti-competition in nature. The bodies shouldn’t encourage collective boycott of non-member players as it would be construed as engaging in anti-competition practices and abetting collusion among the members and let the consumers choose their preferences.

     

    He said that self-regulation was of prime importance to avoid infringement of law or market practices. He cautioned the players that consumers should be given primary importance and that should be the end goal of the businesses.

     

     

  • The general feedback from delegates was that Frames 2012 had pertinent topics discussed

    @FF12: Day 3: Industry expects thoughts to lead to pertinent actions

    By A Correspondent

     

    The last day of FICCI Frames 2012 was an eventful day — insightful sessions, a lot of networking, sharing of ideas, deals being cracked — and amongst all of this, the highlight was the session on Women in Media and Entertainment.

     

    The day started off with a keynote presentation by Ashok Chawla, Chairman, Competition Commission of India (CCI). He said that the media and entertainment (M&E) industry was one of the fastest growing sectors inIndiawith an expected CAGR of 14-15 per cent. He then proceeded to outline the role of the CCI and its importance: “CCI is an overall market regulator whose objective is to ensure that market forces operate with transparency and fair play. It has been put in place to identify the boundaries of behaviour of the industry.

     

    Mr Chawla opined that self-regulation was of prime importance to avoid infringement of law or market practices and cautioned industry players that consumers should be given primary importance.

     

    Taking on the Digital threat

    The next session was on “Sustaining Long-term Newspaper Loyalty” by two biggies — N Ram, former Editor-in-Chief, The Hindu and Girish Agarwal, Director, Dainik Bhaskar Group, who shared their views on the future prospects of the newspaper industry.

     

    Mr N Ram started off his speech by stating that there was ‘anxiety and gloom’ over the fact that journalism was seeing a meltdown in the mature markets. He outlined two media world phenomenon next, where the less developed countries are witnessing increase in circulation of newspapers unlike the mature market. But he added a word of caution when he said that TV, even in the developing world, is going through a crisis which it has so far covered by showing entertainment as part of news. Inspite of this, Mr Ram was optimistic that the medium term prospects for the media industry are looking good.

     

    As is been spoken widely about, the key factor for the decline in the newspaper is the increasing popularity of the digital media. Mr Ram called this the Digital Age Paradox and added that in recent times the newspapers have seen an increase in the readership of their online editions but have witnessed a “double squeeze” on their revenue, as they have had to subsidise digital journalism, which in turn is cannibalising their circulation.

     

    On how to sustain loyal readers, he tipped, “Stick to the basic principles of journalism – they can build a relationship with the readers, which it can rent out to the advertisers. And most important – “newspapering” should not be reduced to consumer marketing of news.”

     

    Mr Girish Agarwal took the stage next. Contrary to Mr Ram’s belief, he said that Indian newspapers are growing in their circulation and readership. He spoke about the need to engage the ‘consumer’ by asking “How relevant are we (newspapers) to the reader?”

     

    He opined that a newspaper cannot rest on its past glory but should move ahead by acknowledging and understanding what the consumer wants and giving him what they think he needs. On how to keep pace with changing times, Mr Agarwal said that newspapers should have global vision and hyper local content.

     

    After the speeches the floor was opened to the audience who questioned Mr Ram and Mr Agarwal about threat perception of the culture of medianet and media houses being bought over by MNCs. Mr Ram denounced paid news as a rogue practice which has been rubbished by the Press Council. Mr Agarwal said that ethically media should report anything that may be perceived as defaming by the parent company but the ground reality is not always so rosy.

     

    Women to the fore

    A big highlight of Day 3 was a session titled   ‘Women in Media & Entertainment circa 2012: Leading from the front’.

    The panel members of this session were Vidya Balan, Actor; Anurradha Prasad, Managing Director, BAG Films; Jeni Tosi, CEO, Film Victoria; Ekta Kapoor, Creative Director, Balaji Telefilms; Barkha Dutt, Group Managing Editor, NDTV; and Usha Uthup, Singer. The session was moderated by Rajeev Masand, Entertainment Editor, CNN-IBN.

     

    This session discussed the journey of each of the above eminent women personalities and the challenges they faced during their journey. As the moderator, Rajeev Masand put it: “Traditional media, for long, was dominated by men, but not any longer. It’s become outdated.”

     

    All the eminent women personalities claimed that despite all their challenges they had an incredible journey and the results have been fruitful.  Ms Tosi observed that there would always be obstacles in a woman’s journey but, at the same she also admitted that at times a little bit of luck and timing also plays a part in one’s success nevertheless, she must also be hard working and committed to succeed.

    According to Ms Dutt, the real heroes are the women who came before them i.e. those who made a mark and their presence felt in the male dominated industry.

     

    One of the topics discussed at the session was whether ambition for men meant one thing and another for women, and how society reacts to ambitious women. Ms Ekta Kapoor agreed that ambition for men is a virtue, but for women it is seen as something negative. “I never took being a woman as a disadvantage. Today I am successful not in spite of being a woman but, because I am a woman,” she added.

     

    Ms Prasad said: “Today women have become mature, and so have their families. Women have to juggle multiple roles. Had I thought that since I am a woman, I cannot take on a task, then I would not have been successful. If you are happy with what you are doing, you will be successful in life.”

     

    Ms Uthup was of the view that what has really changed is the audience. “The field of Arts has been a level playing field for women. You really don’t have gender bias. I believe if we want change to take place, the people need to be awakened. Men and women must work together, but then there are things that women can do and men can’t and there are things men can and women can’t do.”

     

    Ms Balan said: “The Indian actress today has been humanized; she is getting to play a part in the story. I have never seen my gender as a disadvantage, all I knew was I had to be strong to move ahead in life. There is a wide variety of roles for women today and the fact that there is no model code for women any more is liberating.”

     

    While all these eminent women had plenty of inspiring stories to share, each of them have had to overcome their own tough challenges, change the societal mindset about women being weak and docile, to climb their way to the top.

     

    The road is set for 2013

     

    In a session which ran parallel to the one on Women in M&E, a panel of regional TV experts got together to discuss growth avenues. Moderated by Nachiket Pantvaidya, Executive Vice-President, Star Pravah and with speakers like K Madhavan, Managing Director, Asianet and Sharada Sunder, EVP – Regional Channels, Zee, the session concluded that “Regional was the new National.” One issue which was discussed in the session was how to attract talent and also how does regional broadcast channels attract youth, the single largest segment inIndia.

     

    A session on GEC regulation discussed dos and don’ts as far as content is concerned, what is permissible and what not. It included Justice AP Shah, Prof Jonathan Askin, Ashok Nambissan of Sony Entertainment Television and Naresh Chahal of IBF.

     

    The general feedback from delegates was that Frames 2012 had pertinent topics discussed. One hopes that industry put the many ideas and resolutions discussed to action.

     

  • On Day 2 of FICCI Frames 2012, delegates felt that innovations need to keep pace with technology changes.

    @FF12: Day 2: Seamless blending with traditional mediums – a big want!

    By A Correspondent

     

    After an invigorating day where suggestions and formulas surrounding digital came flying thick and fast, it was time for the mediums of television, advertising, radio, films etc to do some soul-searching and look for solutions to tackle the imminent challenges that digital is bound to bring. The day began with a keynote address by Hernan Lopez, CEO, Fox International, who began by praising the dominance that India had cast on several countries around the world. But he regretted the fact that despite ideas and innovations gaining prominence, one area that sadly lacked innovative ideas and content was television. According to Mr Lopez, the reason for India’s lack of show was due to the fact that Indian talent “operates under price control which equals creative shackles”.

     

    Mr Lopez continued saying that the Indian television industry is almost totally dependent on advertising revenues – almost $2.6 billion per year – which, coupled with the fact that there is an overabundance of channels and less number of affiliates, meant that broadcasters are in a bind. The way forward according to Mr Lopez was if the price control was done away with. He said that this would make it possible to pay the talent in the industry what it deserves and then it can operate without any constraints to produce the best possible content. Mr Lopez lauded the move to digitisation which would reduce the carriage fees being paid and increase the revenues for the industry.

     

    In a session moderated by Neeraj Roy of Hungama, Sanket Akerkar, MD of Microsoft India talked about “The converged future – Multiple platforms, technologies & transforming applications for media and entertainment”. The theme of his keynote address was significance and emergence of digitisation. Citing the example of ‘Occupy Wall Street’, Mr. Akerkar said that the consumer lifestyles today are controlling the way conversations happen. The industry has to takes its cues from what the consumers want. According to him, even ads will now be consumed as per the consumers’ choice and the advertisers can’t dictate the place and time for the consumption. Now the people are going to become the content creator and content consumer. The main challenge for the industry is now to seamlessly blend and enable technology to become user-friendly, he said.

     

    Mr Roy added by saying that technological progress has enabled applications that recognise the customer preferences, be it the Internet or the phone. All the speakers were in agreement that once the digitisation bill comes into effect, the choice of content available to the user will be limitless. As Mr Akerkar said, “the challenge will be to separate content, be it mainstream or user generated into what is relevant and what is not.”

     

    In another session titled “Innovations in the advertising industry in the digital world”, the panellists focused on why the much sought after medium of digital was rather ignored by advertisers who preferred to seek refuge elsewhere. The panellists comprised Rajan Anandan of Google India, Olivier Fleurot of MSL, Frederic Josue of Havas Media, Vikram Sakhuja of Group M, Kapil Agarwal of UFO Moviez and Varun Gupta of KPMG India. The session was moderated by Rajiv Makhni, Managing Editor, Technology, NDTV.

     

    Mr Anandan began by stating that India is still an emerging market where web advertising is concerned and it still constitutes just 3 per cent of the overall advertising spends in India – estimated to be around Rs 33,000 crore. The biggest driver of growth in advertising on the web would be through the rise in the number of users of smartphones, which is estimated to touch 100 million users in 4-5 years time. Smartphones alone could boost the growth of web advertising to about 8-10 per cent, he said.

     

    Mr Josue of Havas was of the view that it would be content that will drive the growth of the medium in the years to come. But the medium will face its share of issues which include multi-tasking across various platforms as an attempt will be have to be made to offer content seamlessly across various mediums, he said. Mr Fleurot began by stating how the marketing and communications industry was witnessing a profound disruption due to the invasion of technology and social media. This, he said, has led to an increased level of competition in the marketplace. The challenge, according to Mr Fleurot, is that clients today are not yet organised for the 21st century as they still prefer to work in silos. But in the case of online, the model of working in silos will disappear as all the other mediums work as a single unit on the internet. Going forward, the two key factors that will determine the growth of this medium, he said, include the speed with which marketers communicate with their users through the digital medium and the transparency with which they operate on the medium.

     

    Vikram Sakhuja was at his jingoistic best as he began by questioning what the term innovation in advertising actually stood for. “Innovation is a term that is broader than creativity. It is a new way of doing something better,” he said. He outlined the current scenario by stating that technology today is an overestimated medium in the short term but is underestimated for the long term. The problem according to him is that the medium has been underestimated for a long time now and that it was about time the medium leapfrogged ahead of the others – go from the current 3 to 15 percent in the shortest possible timeframe.

     

    In the session titled “Building sustainable models for niche content” honchos from the broadcast industry such as Paritosh Joshi of Star CJ (session moderator), Smeeta Chakrabarti of NDTV Lifestyle, Monica Tata of Turner International India, Ajay Chacko of A+E Networks I TV 18 JV, Atul Pande of Zee – Sports and Rasika Tyagi of Star India discussed on revenue models to sustain TV content catering to niche audiences and its long-term sustainability. Atul Pande stressed on the need to charge premium to audiences who really are on the lookout for speciality content. Smeeta Chakrabarti said that as a speciality channel one cannot talk about TRPs, rather it is the brand connect that needs to be spoken about as far as ad sales was concerned. Rasika Tyagi on the other hand remarked that the whole idea of measuring a speciality interest channel should be relooked at. “It’s not about how many people are watching you; it’s more about what kind of people are watching you.” She also said that the audiences of niche channels are of such quality that they do not mind paying, and that broadcast companies should look to tap into that opportunity.

     

    On whether the industry requires a different approach as far as measurement for these channels was concerned, Paritosh Joshi said, “The big challenge with respect to measurement is that we need to find a way to measure both quantity as well as quality. The quality aspect is very critical for a speciality channel.” Monica Tata added, “We need to have a different measurement system to evaluate special interest channels.”

     

    In the post-lunch session titled “Radio: Innovations in content”, industry veterans discussed at length the innovations that radio was witnessing with regards to content and the enormous innovation opportunities that FM Phase III would allow. The session was moderated by Apurva Purohit, CEO of Radio City and the panellists included Rabe Iyer of Big FM, Abhijit Avasthi of O&M, Bhavna Somaaya, Columnist and Writer and Charles Falzon of Ryerson University.

     

    Ms Purohit kick-started the session stating that radio currently is in a schizophrenic stage wherein on one hand the medium is witnessing immense growth, it has a huge reach in the country and the FM listenership has also further increased with higher number of mobile phones, while on the other hand the overall ad pie of the medium is at a dismal 4 per cent. She pointed out that in the next two years the industry anticipates another phase of growth which will bring news, sports commentary, multiple frequencies, besides further expansion into towns and cities.

     

    Speaking about the strengths of radio as a medium to advertise, Mr Avasthi first admitted that out of all the media, it is the toughest to write radio spots. He explained, “The strength of radio I believe is one can conjure up a world in the minds of the listeners. What you hear on radio today is mainly restricted to Bollywood music. There are so many kinds of music still to be explored and so many types of content that can be experimented, and I believe the industry requires some amount of courage to break this format.”

     

    According to Mr Iyer, although 80 per cent of content on radio is music and 20 per cent on the packaging of music, there has been some innovation in the medium and with the launch of phase III it will bring with it immense opportunities especially on the innovation and differentiation front.

     

    Key takeaways:

    – Need for television to do away with price control

    – Niche channels to broaden content choice for consumers

    – Post digitisation, consumers will dictate place and time of content consumption

    – Need for significant hike in digital adspends by clients

    – Phase III to steer growth of radio significantly

     

  • Discussions on digitization (& how it could impact the sector) dominated the three-day FICCI-Frames 2012 last week

    Counting on digital to be M&E’s trailblazer

     

    @FF12: Day 1: Digital attracts ‘desirable’ status
    on Day1
    @FF12: Day 2: Seamless blending with traditional mediums – a big want!
    @FF12: Day 3: Industry expects thoughts to lead to pertinent actions
    @FF12: Takeaways: Digitization rules the roost @FICCI Frames 2012

    By A Correspondent

     

    Those familiar with the going-ons at FICCI Frames would testify how an infatuation gets displayed by delegates at the event each year so as to summarise the mood of the convention even before it broadly takes off across the three days that it is entitled to. But probably, the setting was a bit different this time around when the delegates – joined in unison by the media – were running ballroom to ballroom trying to ingest giveaways that were being thrown up abundantly across several sessions. May be, it was a year where each day had something new to offer to the delegates that kept them at tenterhooks throughout the 3-day event. And going by the loud decibels that were being emanated across every nook and corner of the venue, it was evidently clear that there was some motivating factor that was driving the gathering to go on an overdrive spree.

     

    The organisers of FICCI Frames 2012 have every right to take credit for coming up with a theme around a medium that attracted the attention of one and all. Having kept it on the sidelines till last year, digital was finally given its due at the convention as experts, authorities and enthusiastic youngsters came face to face to deliberate and come up with outcomes that would redefine the way the consumers consume the medium. From television to print to films and even radio, digitisation and the benefits and effects it would cast on these sectors were discussed in length at the venue. In fact Star India CEO Uday Shankar in his keynote address didn’t hesitate in thanking the FICCI committee for putting across a theme that would go on to redefine the way the industry functions in the future.

     

    What was apparently clear through the various sessions at the convention is that with the nearing of date for total digitisation across key metros by June 30 2012, and then across the country by 2014, broadcasters had to relook their distribution and content provision models so as to keep the consumer at the heart of every shift that will transpire in the future. Emphasising on the current digitisation scenario in the country, Mr Shankar said, “Most of the discussions that I have participated in are still around whether digitization will happen and if it indeed were to go through, how chaotic it would be. But all these are meaningless discussions triggered by a bunch of retrograde interests who are living in denial.” According to Mr Shankar, digitisation of distribution is a big reality and the 40-45 million homes that have bought DTH boxes at some point or the other are a conclusive evidence of that.

     

    Shooting back at critics who had doubted whether the makeover to digital would ever be a reality, Mr Shankar said, “To the critics and the cynics who are still wondering whether digitization would happen, my answer is: Look around, it is already happening and the rest of it is bound to happen because even in this country it would be difficult to undo such a momentous shift. To those who wonder how chaotic it would be, my response is that there would be some chaos, but chaos is not necessarily bad if the alternative is status quo or regression. When a transition at such a scale is happening that affects the illegitimate but strong vested interest in certain pockets, then there is an incentive to put up with chaos in the interest of the larger social objectives.”

     

    A broader outlook was provided by a few panellists who said that digitization will come in as a relief for broadcasters who will be benefitted from additional subscription revenue, relaxation on paying heavy carriage fees, and of course providing viewers with a superior content experience – MSOs and cable operators have to quickly respond to the digitization mandate by investing in set-top boxes – the cost that is only possible to recover after four years.

     

    Sounding off the challenges that digitisation would present for the broadcast sector, Tarun Katial, CEO of Reliance Broadcast Network Ltd said that, “For television, it will be a combination of content as well as marketing. The old model which was a combination of carriage and product, as it stands today, won’t work. The business plan which currently has a very high rate of carriage will obviously see the content taking precedence.” And as for content, it will be niche content that will call the shots for broadcasters as according to experts at the convention, niche isn’t niche any more as all niche channels put together command a share that is equivalent to the share of Hindi GECs and the mass channels, so to say.

     

    Perhaps the many advantages that digitisation will have on several mediums was rounded off by Vikram Sakhuja, CEO, South Asia, Group M who said, “The inherent power that digital brings along with it is interactivity and its ability to link multiple devices. Also the ability to enhance real-time consumption of content; linked to that is the entire thing about going mobile.” On the roadmap for the industry, Mr Sakhuja said, “I think integrated media is the best way forward. Today when people think of multimedia planning, they do a separate TV plan, print plan, radio plan, internet plan and so on. I believe that if you actually look at media agnostically and at common metrics of each cost per thousand impressions, these are the ways in which you can construct a media agnostic plan. What it does is, it suddenly gets more money into digital, and when more money can come into digital, that’s when focus is going to come in.”

     

    While digitisation was the mainstay of every discussion, the all-important issue of regulation too was taken up by panellists who chose to have the government respond to the many queries surrounding the topic. Uday K Varma, I&B Secretary, said that “if people at large seem to be happy with self regulation, I think the government would have no problem in legitimizing them. But I think the self regulation mechanism which has been set up by both the news broadcasters and the entertainment broadcasters, they’ll have to really prove it, not to the government but to the people at large.” He was joined in his cause by Prithviraj Chavan, Chief Minister ofMaharashtrawho said that the challenge would be to adopt the regulatory framework to new technology and ensure that over regulation doesn’t kill a good thing. The Chief Minister emphasised on the need for regulation and suggested that instead of the state regulating the media, the medium should look at regulating itself.

     

    The other important announcements that came up at the venue included the soon-to-be-passed Copyright Amendment Bill, the roll-out of the imminent phase 3 radio policy that would steer the growth of the medium and increased government aid for the film & entertainment sector.

     

    New ventures @ FICCI

     

    BARC takes wings

    In between the many promises and hopes that were being doled out at the sessions came the news of the Indian Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA) and Advertising Agencies Association of India (AAAI) announcing the official formation of a nationwide audience research joint body — Broadcast Audience Research Council (BARC).

    While IBF will have 60 per cent stake in BARC, ISA and AAAI will each hold 20 per cent stake. The Board of the council will have 10 members, six members from the IBF and two members each from the ISA and AAAI.

     

    Discovery Kids to flag off ops in April

    Another important announcement was made by President & CEO of Discovery Networks International, Mark Hollinger who announced the launch of its new network for children inIndia, ‘Discovery Kids’. Mr Hollinger said, “Launching in April, the network will initially be available in three languages – Hindi, English and Tamil. The channel will offer children a fun and entertaining way to satisfy their natural curiosity with stimulating and imaginative programming,” he said. The company plans to roll out the channel inPhilippinesandIndonesialater this year.

     

    Ten Golf tees off

    Taj Television India Pvt Ltd announced the launch of Ten Golf, a dedicated 24-hour golf channel. Ten Golf is the fifth channel from Taj Television India Pvt Ltd and began transmission on March 15, 2012. The dedicated golf channel will showcase a mix of live, non-live and feature programming. The channel will also broadcast live, high quality Golf action from around the world.

    Ten Golf has acquired rights for European Tour and Asian Tour till 2016, and has also entered into partnership with PGTI for three years to telecast the Indian Tour. Further, Ten Golf will be telecasting 400 hrs of golf programming in association with NBC.

     

  • FICCI Frames 2012 took off on an exhilarating note on Day 1, with the burning issue of Digital coming to the fore right away and more or less staying there.

    @FF12: Adapt to the digital tide or be left out

    By A Correspondent

     

    In keeping with the theme, ‘Embracing the Digital World’, FICCI Frames 2012 got off to a wishful start at Hotel Renaissance, Mumbai on March 14 with a welcome address by the Co-Chair of FICCI Entertainment Committee, Karan Johar. After Mr Johar’s welcome address, Uday Shankar, CEO, Star India & Chairman, FICCI Broadcast Forum, proceeded to present his perspective on the Event and the broadcast industry in general. Making a dash for the core topic of digital, Mr Shankar began by stating, “Digitization is a big reality which will revolutionise the way content (creation and distribution) is offered.” Even though he said that digitisation will create a level playing field for the broadcasters and the cable operators, he had a word of caution to add when he said that his biggest concern was “the chaos which will be caused by the broadcast industry’s inaction”.

     

    Prithviraj Chavan, Chief Minister of Maharashtra was next and began by assuring how the current era was an “exciting time to be living in”. He said that the challenge would be to adopt the regulatory framework to new technology and ensure that over regulation doesn’t kill a good thing. He also said that the move towards digitization will create a huge employment opportunity but there is a need to explore how technology can empower the field of education. The Chief Minister also touched upon the need for regulation and suggested that instead of the state regulating the media, the medium should look at regulating itself.

     

    Following the CM’s speech, the event witnessed the release of the FICCI-KPMG Indian Media and Entertainment Industry Report 2012; FICCI-Amarchand Lawbook and ‘Positivity: The impact of television on India’ by The Indian Broadcasting Foundation.

     

    Uday K Varma, Secretary, Ministry of I&B, opened his address next by stating that the concerns that the industry had over digitization and the Phase 3 of FM radio have been addressed by the move to allow 839 new FM stations and 500 community radio stations. He stressed that the government is committed to ensuring time bound digitization and said that come July 1, the four metros will switch over to the digital format and the plan is to ensure that the move to digitization is completed by December 31, 2014. He agreed that the challenge was mammoth – to convert 80 million analog connections to digital format, but added that it will ensure faster and deeper penetration. “This will address a plethora of issues facing the television industry, such as addressability, carriage fees, audience measurement and consumer preferences,” he said.

     

    Punit Goenka, CEO & MD, ZEEL too spoke about the pros and cons of digitization, how the ratings are inadequate and how self regulation was the need of the hour for the broadcast industry. Carolyn Everson, VP, Global Marketing Solutions, Facebook elaborated on how Facebook can benefit the media and entertainment industry and cited examples from music, gaming and films to drive home her point.

     

    Session highlights:

    Post the promises and pleasantries doled out by committee members and authorities, it was time for some serious discussion which began with a panel debate on ‘Addressable Digitization – The way forward’. Sanjay Gupta, COO – Star India, Sunil Lulla, CEO and MD Times Global Broadcasting, Sameer Manchanda, Founder – DEN Networks and Punit Goenka, MD and CEO, ZEEL comprised the panellists. The panellists agreed that digitization is the way forward and will soon be a reality. Uday K Varma, Secretary – I&B, put the ball in the industry’s court as he said that there were no political opposition to digitization and the parliament too passed the law in December 2011, therefore it is now incumbent upon the industry to make digitization a reality. Sunil Lulla pointed out that the there is greater good in digitization, but the industry has to do a lot of work over the next few years. Sameer Manchanda was of the view that digitization is a reality and that it will bring more number of channels. The session also discussed opportunities and challenges that digitization has to offer and how the industry was gearing for digitization – whether they are ready or not?

     

    A session on ‘Maximising the power of digital distribution’ saw industry leaders speak about the challenges that come along as the country is experiencing the much talked about shift – from analog to digital cable – the investments that goes into and many such challenges. Industry honchos such as K Jayraman of Hathway Cable and Datacom Ltd, SN Sharma of DEN, Anshuman Misra of Turner, Asia Pacific, Vikram Chandra of NDTV, Jagi Mangat Panda of Ortel, Prof Jonathan Askin, and Anita Wallgren, Government Attorney, US Department of Commerce made up for the panel.

     

    The panel agreed that while digitization comes in as a relief for broadcasters who will be benefitted from additional subscription revenue the relaxation on paying heavy carriage fees, and of course providing viewers with a superior content experience – MSOs and cable operators have to quickly respond to the digitization mandate by investing in set-top boxes – the cost that is only possible to recover after four years.

     

    Vikram Chandra talked about the difference digitization makes to the news industry. “Digitisation is important for news players. It is leading players in the news industry into areas they don’t want to be in. In the race of chasing TRPs, people are forgetting that digital has great potential that has to be tapped, a business model which needs to be looked at.” Mr Chandra also mentioned the role of tablets and high-end devices as new distribution platforms.

     

    Next was a session titled “Financing the Media and Entertainment Business” where the panellists comprised eminent personalities such as Prashant Jain of HDFC Mutual Fund, Mathew Cyriac of Blackstone, Soumo Ganguly of Moxie Entertainment Pvt Ltd and Daniel Dubiecki, Founder and Partner, The Allegiance Theatre, Hollywood.

     

    Mathew Cyriac started off the session by pointing out that majority of the investments within the media and entertainment industry were made in television and print as they represent a fairly large share  in terms of sheer numbers as against Internet and Radio. The Hindi GECs in TV is typically where a lot of money goes to, followed by regional GECs and sports channel. For print media, it was the regional publications that command a lot of attention as regional advertising is very robust and extracts a lot of profit.

     

    Prashant Jain pointed out that a lot of companies in India have managed to get good funding and that it is not reflective of the supposedly very, very sorry picture that was being talked about. “It’s not that all of India in the media entertainment space are not attracting funds. Companies like UTV and a few others have attracted investors.”

     

    In the session on ‘Protecting Copyrights, Infringements & New Trends i.e. Remake’, the panellists chose to rummage over the impediments surrounding copyright issues in the film and music industry in India. The panellists included Sai Krishna from Sai Krishna Associates, Deborah Benattar from the French Embassy, Jagdish Rajpurohit from RCL Motion Pictures, Bertrand Mouiller, former DG IFFPA and Amar Butala from UTV Motion Pictures.

     

    Sai Krishna provided a hopeful insight as he said, “The industry should take heart in knowing that the Copyright Amendment Bill is currently being debated in the parliament and is expected to be passed after the current Budget Session. There are provisions that can alter the way the entertainment industry functions in India.” But he cautioned that the Bill has its setbacks too, as there are no clear guidelines when it comes to copyright issues between the writer, music composer and the producer of a film.

     

    Mr Butala added, “We have made huge leaps in terms of legal paperwork with actors and performers where copyright issues are concerned. But it is just the start and the challenge will be to sort out legal issues and take the offenders to Court with the hope of finding a favourable outcome from the judiciary.” The panel proceeded to discuss the trend of moviemakers bagging rights for remaking movies and that there was a need for a law that would streamline procedures for the industry at large.

     

    Key takeaways:

    – Complete digitization makeover scheduled for December 31, 2014

    – Copyright Amendment Bill to be passed in Parliament soon

    – Digitization will encourage niche and differentiated content

    – Need for media to self-regulate self then wait for a nodal authority to do it

    – Digitization to create more employment opportunities

     

  • Having played a tepid role thus far, digitization is poised to take a big leap as it sets out to revolutionize the fortunes of the M&E sector.

    @FF12: Counting on digital to be M&E’s opportune trailblazer

    By A Correspondent

     

    Those familiar with the going-ons at FICCI Frames would testify how an infatuation gets displayed by delegates at the event each year so as to summarise the mood of the convention even before it broadly takes off across the three days that it is entitled to. But probably, the setting was a bit different this time around when the delegates – joined in unison by the media – were running ballroom to ballroom trying to ingest giveaways that were being thrown up abundantly across several sessions. May be, it was a year where each day had something new to offer to the delegates that kept them at tenterhooks throughout the 3-day event. And going by the loud decibels that were being emanated across every nook and corner of the venue, it was evidently clear that there was some motivating factor that was driving the gathering to go on an overdrive spree.

     

    The organisers of FICCI Frames 2012 have every right to take credit for coming up with a theme around a medium that attracted the attention of one and all. Having kept it on the sidelines till last year, digital was finally given its due at the convention as experts, authorities and enthusiastic youngsters came face to face to deliberate and come up with outcomes that would redefine the way the consumers consume the medium. From television to print to films and even radio, digitisation and the benefits and effects it would cast on these sectors were discussed in length at the venue. In fact Star India CEO Uday Shankar in his keynote address didn’t hesitate in thanking the FICCI committee for putting across a theme that would go on to redefine the way the industry functions in the future.

     

    What was apparently clear through the various sessions at the convention is that with the nearing of date for total digitisation across key metros by June 30 2012, and then across the country by 2014, broadcasters had to relook their distribution and content provision models so as to keep the consumer at the heart of every shift that will transpire in the future. Emphasising on the current digitisation scenario in the country, Mr Shankar said, “Most of the discussions that I have participated in are still around whether digitization will happen and if it indeed were to go through, how chaotic it would be. But all these are meaningless discussions triggered by a bunch of retrograde interests who are living in denial.” According to Mr Shankar, digitization of distribution is a big reality and the 40-45 million homes that have bought DTH boxes at some point or the other are a conclusive evidence of that.

     

    Shooting back at critics who had doubted whether the makeover to digital would ever be a reality, Mr Shankar said, “To the critics and the cynics who are still wondering whether digitization would happen, my answer is: Look around, it is already happening and the rest of it is bound to happen because even in this country it would be difficult to undo such a momentous shift. To those who wonder how chaotic it would be, my response is that there would be some chaos, but chaos is not necessarily bad if the alternative is status quo or regression. When a transition at such a scale is happening that affects the illegitimate but strong vested interest in certain pockets, then there is an incentive to put up with chaos in the interest of the larger social objectives.”

     

    A broader outlook was provided by a few panellists who said that digitization will come in as a relief for broadcasters who will be benefitted from additional subscription revenue, relaxation on paying heavy carriage fees, and of course providing viewers with a superior content experience – MSOs and cable operators have to quickly respond to the digitization mandate by investing in set-top boxes – the cost that is only possible to recover after four years.

     

    Sounding off the challenges that digitisation would present for the broadcast sector, Tarun Katial, CEO of Reliance Broadcast Network Ltd said that, “For television, it will be a combination of content as well as marketing. The old model which was a combination of carriage and product, as it stands today, won’t work. The business plan which currently has a very high rate of carriage will obviously see the content taking precedence.” And as for content, it will be niche content that will call the shots for broadcasters as according to experts at the convention, niche isn’t niche any more as all niche channels put together command a share that is equivalent to the share of Hindi GECs and the mass channels, so to say.

     

    Perhaps the many advantages that digitisation will have on several mediums was rounded off by Vikram Sakhuja, CEO, South Asia, Group M who said, “The inherent power that digital brings along with it is interactivity and its ability to link multiple devices. Also the ability to enhance real-time consumption of content; linked to that is the entire thing about going mobile.” On the roadmap for the industry, Sakhuja said, “I think integrated media is the best way forward. Today when people think of multimedia planning, they do a separate TV plan, print plan, radio plan, internet plan and so on. I believe that if you actually look at media agnostically and at common metrics of each cost per thousand impressions, these are the ways in which you can construct a media agnostic plan. What it does is, it suddenly gets more money into digital, and when more money can come into digital, that’s when focus is going to come in.”

     

    While digitisation was the mainstay of every discussion, the all-important issue of regulation too was taken up by panellists who chose to have the government respond to the many queries surrounding the topic. Uday K Varma, I&B Secretary, said that “if people at large seem to be happy with self regulation, I think the government would have no problem in legitimizing them. But I think the self regulation mechanism which has been set up by both the news broadcasters and the entertainment broadcasters, they’ll have to really prove it, not to the government but to the people at large.” He was joined in his cause by Prithviraj Chavan, Chief Minister of Maharashtra who said that the challenge would be to adopt the regulatory framework to new technology and ensure that over regulation doesn’t kill a good thing. The Chief Minister emphasised on the need for regulation and suggested that instead of the state regulating the media, the medium should look at regulating itself.

     

    The other important announcements that came up at the venue included the soon-to-be-passed Copyright Amendment Bill, the roll-out of the imminent phase 3 radio policy that would steer the growth of the medium and increased government aid for the film & entertainment sector.

     

    Session Byte

    “I think we have created some kind of history by encouraging self-regulation for the news and entertainment channels. We are keeping a close watch on the efficacy of this novel mechanism. A lot would depend on how effectively these self regulations become functional. If people at large seem to be happy with self-regulation, I think government would have no problem in legitimizing them, but I think the self-regulation mechanism which has been set up by both the news broadcasters and the entertainment broadcasters, they’ll have to really prove it, not to the government but to the people at large.”

     

    — Uday K Varma, I&B Secretary

     

    New ventures @ FICCI

    BARC takes wings

    In between the many promises and hopes that were being doled out at the sessions came the news of the Indian Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA) and Advertising Agencies Association of India (AAAI) announcing the official formation of a nationwide audience research joint body — Broadcast Audience Research Council (BARC).

     

    While IBF will have 60 per cent stake in BARC, ISA and AAAI will each hold 20 per cent stake. The Board of the council will have 10 members, six members from the IBF and two members each from the ISA and AAAI.

     

    Discovery Kids to flag off ops in April

    Another important announcement was made by President & CEO of Discovery Networks International, Mark Hollinger who announced the launch of its new network for children in India, ‘Discovery Kids’. Mr Hollinger said, “Launching in April, the network will initially be available in three languages – Hindi, English and Tamil. The channel will offer children a fun and entertaining way to satisfy their natural curiosity with stimulating and imaginative programming,” he said. The company plans to roll out the channel in Philippines and Indonesia later this year.

     

    Ten Golf tees off

    Taj Television India Pvt Ltd announced the launch of Ten Golf, a dedicated 24-hour golf channel. Ten Golf is the fifth channel from Taj Television India Pvt Ltd and began transmission on March 15, 2012. The dedicated golf channel will showcase a mix of live, non-live and feature programming. The channel will also broadcast live, high quality Golf action from around the world.

     

    Ten Golf has acquired rights for European Tour and Asian Tour till 2016, and has also entered into partnership with PGTI for three years to telecast the Indian Tour. Further, Ten Golf will be telecasting 400 hrs of golf programming in association with NBC.

     

  • Text of keynote address by Mr Uday Shankar, CEO, Star India and Chairman, FICCI Broadcast Forum

    @FF12: Text of Star India CEO Uday Shankar’s keynote

    Good morning.

     

    Senator Dodd, Secretary Uday Verma, Chief Minister Chavan, Prosenjit, Jehil and my dear friend Karan Johar, the remarkable team of FICCI that has organized this fabulous event, friends from media, ladies and gentlemen.

     

    A couple of years ago when I was asked by FICCI to take over the chair of FICCI Broadcast Forum, none of us had an exact idea of the timeliness of that decision.  FICCI was seized off the maturity and the size of Broadcast media and felt that the time had come for it to sharpen focus on this aspect of media and not merely treat it as an adjunct of films.  However the momentous changes that have happened in the Broadcast media landscape in the last 2 years clearly justify the wisdom of FICCI.

     

    I find a powerful validation of the significance of television and broadcasting in “Positivity” – a report by the IBF on the impact of television. IBF has gone ahead and spoken to our viewers – the key findings of the research are gratifying and humbling for the industry. I don’t want to give too much away, but must highlight two interesting results – Over 90% of our respondents believe that television is a source of encouragement and motivation and a similar percentage of women respondents believe that Television has given them the confidence to believe in the capabilities and potential.

     

    Gratifying as it may be, it is just the beginning. We are at the cusp of what is set to completely transform broadcasting in India forever.  I am talking about the universal digitization of television distribution.  This is a subject that has dominated all discussions at all forums in the last year and I presume will continue to do so for a long time to come.  But let’s pause a minute and recall what the discussion is centered around.  Most of the discussions that I have participated in are still around whether digitization will happen and if it indeed were to go through, how chaotic it would be.  With all humility may I suggest that it is a meaningless discussion triggered by a bunch of retrograde interests who are living in denial.  Let’s get some basic facts -The Cable Television Networks Amendment Act is not the beginning of digitization.  Digitization of distribution is a big reality and the 40 – 45 million homes that have bought DTH boxes at some point or the other are a conclusive evidence of that.  In fact as we speak, India may just have overtaken the United States as the world’s largest DTH market.

     

    What Minister Ambika Soni, Secretary Uday Verma and his team are doing is to create a structured, institutional framework for shaping this big social reality.  More than 25 crore people who have stated their preference for DTH over analogue cable have clearly spoken out that this country is now ready for universal digitization and the current move is merely to create a level playing field.

     

    So, to the critics and the cynics who are still wondering whether digitization would happen, my answer is: Look around, it is already happening and the rest of it is bound to happen because even in this country it would be difficult to undo such a momentous shift. To those who wonder how chaotic it would be, my response is that there would be some chaos, but chaos is not necessarily bad if the alternative is status quo or regression.  When a transition at such a scale is happening that affects the illegitimate but strong vested interest in certain pockets, then there is an incentive to put up with chaos in the interest of the larger social objectives.

     

    Actually my biggest concern now is a chaos of another kind that we are all set to create by our inaction.  Whether we like it or not, in a few years time, the vast majority of this country will receive its content through digital media – digital cable, DTH, 4G, wireless and internet.  But are we preparing for that? The answer is a big NO.  I worry that while we debate a digital future day-in-and -day-out we are doing nothing to transform or find business models for a digital world. Let’s face it – universal digitization is going to force us to change the way we do business and we are so not ready for it.  We often blame the cable operators and MSOs that they are not ready but I am afraid that even the broadcasters and the content creators are not ready for a digital world.  Are we then setting ourselves up to become uncompetitive and irrelevant?

     

    In case you think I am a scaremonger, let me ask a question – we all know how many people DTH services and now a large number of them have evolved services like HD, DOLBY sound and digital video recorder and yet what are we doing differently to service this segment?  DTH has been around now for about 6 years and is there one thing that we as broadcasters or the content community have done that we could point out as an example of a strategy to exploit the new technology?  This is despite an intuitive and an experiential understanding that the behavior and the consumption patterns in DTH homes are significantly different from analogue homes. The data also show that the average time spent on content in digital homes is much more and yet we do not treat them differently.

     

    It is perhaps scary how we have force-fitted an analogue broadcasting model into the digital domain.  Is that what we are going to do even after cable goes digital?  I am afraid if the past behavior is anything to go by, we are not ready to offer anything significantly different and therein lies the biggest crisis and risk of a chaos.  We have often spoken about how digitization would enable a multiplicity of niche channels to emerge.  Digitization of TV and even film infrastructure for that matter can revolutionize the way media is consumed in India.  There is enough global experience to suggest that digitization leads to de-centralization, regionalization or localization of content creation and distribution.  Creatively, it is a huge catalyst for innovation and diversity.  Essentially what it means is that with universal digitization the business models of broadcasting which are built on centralized creation and distribution of content and even a centralized advertising revenue model may come under a huge pressure.  I am proud to lead one of the finest media companies in this country and the world and yet I must confess that all of us have built our businesses in an environment where access to distribution was complicated, expensive and even impossible.  That is all set to change. So the big incumbent advantage is set to slowly, if not rapidly disappear. Socially, it is all very desirable because the plurality of this country is very valuable and digitization is a big catalyst for that plurality.  But, are we ready to re-tool our strategies and our businesses?  The cable community is still busy lamenting the potential loss of carriage fees not realizing what an amazing opportunity it has to participate in the local economic boom that is sweeping most parts of this country.  The first phase of digitization that covers the 4 metros will be a huge unshackling of broadcasting and content opportunities.  These are the cities that have crumbled under the weight of analogue frequency limitations.  Just imagine the opportunities that these metros also our economic hotspots present when, from the first of July access to frequency will no longer be a constraint.  So to my mind the MSOs and the cable operators may potentially become a powerful content creator that the traditional broadcasters have to contend with. There may be new creative talent ready to ride this technological transition.  As the subsequent phases roll on, the decentralization of broadcasting is bound to gain enormous momentum.  However, I don’t see anyone trying to race ahead to take a pole position here.

     

    Now let’s look at the content and the creative community that I myself am a part of.  But I am struck by our obliviousness to the opportunities and changes awaiting us.  Let me explain this with a slightly different example.  It’s been for a few years now that HD TV sets have been available in this country.  While many people were buying them, their off-take was still low primarily because there was no HD content and nobody was willing to invest in HD content because there were not enough HD consumers.  It was the classic chicken and egg problem.  However early last year, when we at Star launched 5 HD channels with DOLBY 5.1 surround sounds even we were surprised by the rapidity with which HD gained acceptance. Today, in less than a year there are around 25 HD channels. But, I have to admit with a touch of disappointment that I am yet to see an adequate recognition of the potential of HD and a superior sound possibility by my fraternity.  It is a classic case of the old mindsets struggling with a new technology.

     

    Are we going to stay locked into this struggle or are we going to create a new generation of television which would be designed for the digital world?  It will require all of us to change.  The creative and broadcasting community has to change their approach to content and the distribution mindset needs to change equally. If you are a cable operator or an MSO -  carriage fees is not the reason why you came into this business and people do not take a connection so that you can earn carriage fees. We are all in the business of delivering best television experience for the consumers and they will be happy to pay for it.  There is enough evidence that people want to consume content and lots of it – but they love it when it is customized to their taste.  Today there is an opportunity to do that and let’s put our heads together to take advantage of that opportunity.  Let’s determine what we require from the Government and the regulator. I have been an admirer of the current information and broadcasting dispensation which I think has shown more vision than any other dispensation in my two decades of interaction with the broadcasting establishment.  However, let me point out that we still need a lot of official and legislative enablers to remove the bottlenecks on this expressway.  For instance, a clear policy to enable multiplicity of beams and splits would be a powerful trigger for proliferation of content and revenue opportunities.

     

    I could go on.  But I would like to end by just reminding you of the latest Oscar success from Hollywood – The Artist – which is an amazing portrayal of how a talented and accomplished artist from the silent era could become completely irrelevant because he refused to see that the times have changed. Let’s not try to thwart a revolution which people are crying for.  We will only hurt ourselves.  The question is whether we will lead the change or whether we will vacate the space for a new set of entrepreneurs and visionaries who will replace us.  It is up to us to use it or lose it. Thank you very much.

     

    Photograph: Fotocorp

  • The government has done its job, now it is up to the industry to make digitization work, said Uday Varma at the FICCI Frames 2012 session on Addressable Digitization.

    @FF12: Digitization – ball in industry’s court, says I&B secy

    By A Correspondent

     

    In December 2011, Parliament had passed a bill making analog cable switch to digitization in phases, starting June 30, 2012. FICCI Frames 2012, on day one held a session on ‘Addressable Digitization – The Way Forward.’ This session had two keynote speakers, Dr JS Sarma, Chairman, TRAI (Telecom Regulatory Authority of India) and Uday K Varma, Secretary I&B (Information and Broadcasting), followed by a panel discussion. Almost everyone in the session agreed that digitization is now a reality and an important ingredient for India’s growth. Will digitization be a game changer? Is the industry is ready for digitization, what are the challenges and opportunities that digitization has to offer, and what’s in it for the consumers – these were some of the points raised during the session.

     

    The session was moderated by Vivek Couto, Executive Director, Media Partners Asia. The panelists were, Sanjay Gupta, COO Star India, Sunil Lulla, CEO and MD Times Global Broadcasting, Sameer Machanda, Founder DEN Networks and Punit Goenka, MD And CEO, Zee Entertainment Ltd.

     

    Mr Varma was of the view that since there has been no political opposition to the digitization of cable and the fact that the parliament too had passed the bill in December 2011 it is now upon the industry to make digitization a reality. Mr Varma was also quick to point out that as far as monitoring is concerned, the government has already set up mechanisms and task force as well as interest groups to address various concerns of the industry. “The progress of digitization must be a transparent process. There will be a mechanism that will be put in place to ensure transparency. We are certainly at the threshold of revolution. There are huge changes that will take place and these changes will certainly be beneficial changes especially on how we create contents.”

     

    Dr Sarma, who will be demitting office in two months time observed, “If India has to grow, digitization will be a vital ingredient for its growth and thus it is important that we be technologically updated. Digitization is here to stay and we need to embrace this change.”

     

    The panelists were of the view that not only the industry is ready for digitization but for some of them, it will be a game changer. While digitization will bring a lot of opportunities in terms of contents and niche channels, the industry will face some challenges too. According to Mr Machanda, digitization will be a game changer as it will bring transparency in the industry. “We are ready for digitization, we have the boxes, call centers are ready etc. I believe in the next few months we will see more momentum in the industry.”

     

    Taking issue with Mr Machanda, Mr Gupta was of the view that it was not digitization but providing democratization of content which would be the real game changer for the industry. “The big challenge however is to not carry our analog mindset in digitization. As a broadcaster we have not catered to different audiences, we must therefore unlock the value of creating differentiated contents” he said.

     

    Mr Goenka believed that digitization will not only encourage niche contents but, provide ample opportunities to provide good content and differentiated contents to consumers. Mr Lulla observed, “There is greater good in digitization. There is a lot of work the broadcasters have to do over the next few years as we will have to create pathways. What will however change is not the price of the business but, the view centric business wherein the consumers will decide what they want to watch and the price they want to pay for it.”

     

    The panelists also agreed that the industry is ready for change but it needs to educate and spread awareness about the benefits digitization has to offer consumers, such as more channels and differentiated content.

     

    Photograph: Fotocorp

  • There was no beating about the bush as digitization dominated the discussion on Day 1 @ Ficci-Frames 2012

    Digital attracts ‘desirable’ status on Day 1

     

    By Team MxMIndia

     

    The West swears by it, developed countries from Asia Pacific have already made a generational leap in terms of technological innovations while globally, the medium has shown why it is the most sought-after given the dynamic growth numbers it throws up in the shortest possible timeframe. Well, it could be said here with certainty that digital has bought about a significant change in the way the world goes about running its business in the last decade compared to what other mediums have been trying to do for decades together. Little wonder that when the organisers of FICCI Frames were faced with the choice of shortlisting a theme that could alter the media and entertainment industry in India, they didn’t have to think twice before narrowcasting on the medium of preference – digital.

     

    In keeping with the theme, ‘Embracing the Digital World’, FICCI Frames 2012 got off to a wishful start at Hotel Renaissance, Mumbai on March 14. In keeping with its tradition, the morning session kicked off with a welcome address by the Co-Chair of FICCI Entertainment Committee, Karan Johar. After Mr Johar’s welcome address, Uday Shankar, CEO, Star India & Chairman, FICCI Broadcast Forum, took the stage to address the audience. Making a dash for the core topic of digital, Mr Shankar began by stating, “Digitization is a big reality which will revolutionise the way content (creation and distribution) is offered”. Even though he said that digitisation will create a level playing field for the broadcasters and the cable operators, he had a word of caution to add when he said that his biggest concern was “the chaos which will be caused by the broadcast industry’s inaction.”

     

    Though Mr Shankar admitted that there is a need for legislative enablers to remove the bottlenecks surrounding digital, he also said that the broadcast industry is still not ready to move to the digital format. To drive home his point he used the example of the film The Artist, where the star of the film loses out when he refuses to move with the times. Next it was the turn of Prithviraj Chavan, Chief Minister of Maharashtra who took the stage to talk about the “exciting times that all are living in”. He said that the challenge is to adopt the regulatory framework to the new technology and ensure that over regulation doesn’t kill a good thing. He also said that the move towards digitization will create a huge employment opportunity but there is a need to explore how technology can empower the field of education. The Chief Minister also touched upon the need for regulation and suggested that instead of the state regulating the media, the medium should look at regulating itself.

     

    Following his speech, the event witnessed the release of the FICCI-KPMG Indian Media and Entertainment Industry Report 2012; FICCI-Amarchand Lawbook and ‘Positivity: The impact of television on India’ by The Indian Broadcasting Foundation. Jehil Thakkar, Head, Media & Entertainment Practises, KPMG made a brief presentation about the key highlights of the FICCI-KPMG Indian Media and Entertainment Industry Report 2012.

     

    Uday K Varma, Secretary, Ministry of I&B, opened his address by stating that the concerns that the industry had over digitization and the Phase 3 of FM radio have been addressed by the move to allow 839 new FM stations and 500 community radio stations. He stressed that the government is committed to ensure time bound digitization and said that come July 1, the four metros will switch over to the digital format and the plan is to ensure that the move to digitization is completed by December 31, 2014. He agreed that the challenge was mammoth- to convert 80 million analog connections to digital format but added that it will ensure faster and deeper penetration. “This will address a plethora of issues facing the television industry, such as addressability, carriage fees, audience measurement and consumer preferences,” he said. Mr Varma added that in order to combat piracy, the government intended to carry out an all-encompassing multi-media campaign involving all stakeholders from the film and music industries, shortly.

     

    Punit Goenka, CEO & MD, ZEEL too spoke about the pros and cons of digitization, how the ratings are inadequate and how self regulation was the need of the hour for the broadcast industry. Carolyn Everson, VP, Global Marketing Solutions, Facebook elaborated on how Facebook can benefit the media and entertainment industry and cited examples from music, gaming and films to drive home her point.

     

    ————————————-

     

    BARC takes wings; Discovery Kids to flag off operations in April

    In between the many promises and hopes that were being doled out at the inaugural session came the news of the Indian Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA) and Advertising Agencies Association of India (AAAI) announcing the official formation of a nationwide audience research joint body — Broadcast Audience Research Council (BARC).

     

    The announcement was made at the inaugural day of FICCI Frames 2012 in Mumbai in presence of I&B Secretary Uday K Varma, TRAI Chairman Dr JS Sarma, Managing Director & CEO of ZEE Punit Goenka, Star India COO Sanjay Gupta, Times Television Network MD & CEO Sunil Lulla, Star CJ CEO Paritosh Joshi, Madison Group Chairman Sam Balsara and Landmarc Leisure Corporation MD Paulomi Dhawan.

     

    While IBF will have 60 per cent stake in BARC, ISA and AAAI will each hold 20 per cent stake. The Board of the council will have 10 members, six members from the IBF and two members each from the ISA and AAAI.

     

    Another important announcement was made by President & CEO of Discovery Networks International, Mark Hollinger who announced the launch of its new network for children in India, ‘Discovery Kids’. Mr Hollinger said, “Launching in April, the network will initially be available in three languages – Hindi, English and Tamil. The channel will offer children a fun and entertaining way to satisfy their natural curiosity with stimulating and imaginative programming,” he said. The company plans to roll out the channel in Philippines and Indonesia later this year.

     

    ——————————————–

     

    Post the promises and pleasantries doled out by committee members and authorities, it was time for some serious discussion which began with a panel discussion on ‘Addressable Digitization – The way forward’. Sanjay Gupta, COO – Star India, Sunil Lulla, CEO and MD Times Global Broadcasting, Sameer Manchanda, Founder – DEN Networks and Punit Goenka, MD And CEO, ZEEL comprised the panellists. The panellists agreed that digitization is the way forward and will soon be a reality. Uday K Varma, Secretary – I&B, put the ball in the industry’s court as he said that there were no political opposition to digitization and the parliament too passed the law in December 2011, therefore it is now incumbent upon the industry to make digitization a reality. Sunil Lulla pointed out that the there is greater good in digitization however, the industry has to do a lot of work over the next few years. Sameer Manchanda was of the view that digitization was a reality and that it will bring more number of channels. While Uday Varma said the government is determined and committed to ensure digitization happens the broadcasters on the other hand also displayed confidence that they are ready for the June 30, 2012 deadline i.e. when metros will switch from analog TV to digital. The session also discussed opportunities and challenges that digitization has to offer and how the industry was gearing for digitization – whether they are ready or not?

     

    A session on ‘Maximising the power of digital distribution’ saw industry leaders speak about the challenges that come along as the country is experiencing the much talked about shift – from analog to digital cable – the investments that goes into and many such challenges. Industry honchos such as K Jayraman – MD and CEO, Hathway Cable and Datacom Ltd; SN Sharma, CEO, DEN; Anshuman Misra – SVP and MD, Networks and Content Distribution, Turner, Asia Pacific; Vikram Chandra, Group CEO, NDTV; Jagi Mangat Panda, Co-Founder and Director, Ortel; Prof Jonathan Askin, Professor of Law, Brooklyn School of Law and Anita Wallgren, Government Attorney, US Department of Commerce, Former Program Director, US Government’s TV Converter Box Coupon Program. Vivek Couto, Executive Director, Media Partners Asia moderated the session.

     

    While digitization comes in as a relief for broadcasters who will be benefitted from additional subscription revenue the relaxation on paying heavy carriage fees, and of course providing viewers with a superior content experience – MSOs and cable operators have to quickly respond to the digitization mandate by investing in set-top boxes – the cost that is only possible to recover after four years. Jagi Mangat Panda pointed out that digitization will result in some sort of consolidation in the distribution space where bigger players will look to expand their presence in the Indian market.

     

    Vikram Chandra talked about the difference digitization makes to the news industry. “Digitisation is important for news players. It is leading players in the news industry into areas they don’t want to be in. In the race of chasing TRPs, people are forgetting that digital has a great potential that has to be tapped, a business model which needs to be looked at.” Chandra also mentioned the role of tablets and high-end devices as new distribution platforms.

     

    Anita Wallgren and Prof Jonathan Askin spoke about how the United States saw the transition of analog TV to digital – the learnings and challenges.

     

    It could be said that the media and entertainment industry of India has scripted a glorious growth story in the past ten years or so. And now, when the future looks more promising with digitisation and the advent of technology across media verticals such as broadcast, print and also films – one area which that has not seen enough progress is the lack of private equities and VC funds showing adequate interest. In a session titled “Financing the Media and Entertainment Business” eminent personalities such as Prashant Jain, Executive Director, HDFC Mutual Fund; Mathew Cyriac, Sr Managing Director, Private Equity, Blackstone; Soumo Ganguly, Managing Director, Moxie Entertainment Pvt Ltd; and Daniel Dubiecki, Founder and Partner, The Allegiance Theatre, Hollywood shared their views on the subject. Ashok Wadhwa, Group CEO, Ambit moderated the session.

     

    Mathew Cyriac started off the session by pointing out that majority of the investments within the media and entertainment industry were made in television and print as they represent a fairly large share  in terms of sheer numbers as against Internet and Radio. The Hindi GECs in TV is typically where a lot of money goes to followed by regional GECs and sports channel. For print media, it was the regional publications that command a lot of attention as regional advertising is very robust – one which extracts a lot of profit.

     

    Prashant Jain pointed out that a lot of companies in India have managed to get good funding and that it is not reflective of a very, very sorry picture as is being talked about. “It’s not that all of India in the media entertainment space are not attracting funds. Companies like UTV and a few others have attracted investors.”

     

    Ashok Wadhwa remarked that the film industry in India is not institutionalised enough to attract private equity. Daniel Dubiecki spoke about the need to be more global in concept, widen the scope of market and thereby making it more viable to attract investments in the films business.

     

    In the session on ‘Protecting Copyrights, Infringements & New Trends i.e. Remake’, the panellists chose to rummage over the impediments surrounding copyright issues in the film and music industry in India. The panellists included Sai Krishna from Sai Krishna Associates; Deborah Benattar, Head, TV & Cinema, French Embassy; Jagdish Rajpurohit, Head, RCL Motion Pictures & Producer; Bertrand Mouiller, former DG IFFPA and Amar Butala, creative director, UTV Motion Pictures. The session was moderated by Dina Dattani, Consultant & Lawyer. Sai Krishna provided a hopeful insight as he said, “The industry should take heart in knowing that the Copyright Amendment Bill is currently being debated in the parliament and is expected to be passed after the current Budget Session. There are provisions that can alter the way the entertainment industry functions in India.” But he cautioned by saying that the Bill has its setbacks too as there are no clear guidelines when it comes to copyright issues between the writer, music composer and the producer of a film. Mr Butala added here saying, “We have made huge leaps in terms of the legal paperwork with actors and performers where copyright issues are concerned. But it is just the start and the challenge would be to sort out legal issues and take the offenders to Court with the hope of finding a favourable outcome from the judiciary.” The panel proceeded to discuss the trend of moviemakers bagging rights for remaking movies and that there was a need for a law that would streamline procedures for the industry at large.

     Photograph: Fotocorp

  • The move to digitisation and ensuring a smooth transition, the benefits, the bottlenecks, curbing piracy were some of the topics discussed in the augural session

    @FF12: Opening session weighs pros & cons of digitization

     

    By A Correspondent

     

    FICCI Frames 2012, now in its 13th year, kicked off on March 14, Wednesday at Hotel Renaissance, Mumbai. The morning session started with a welcome address from Karan Johar, Co-chair, FICCI Entertainment Committee. After Mr Johar’s welcome address, Uday Shankar, CEO, Star India & Chairman, FICCI Broadcast Forum, took the stage to address the audience.

     

    In keeping with the theme, ‘Embracing the Digital World’, Mr Shankar said “digitisation is a big reality which will revolutionise the way content (creation and distribution) is offered”. Even though he said that digitisation will create a level playing field for the broadcasters and the cable operators, he had a word of caution to ad when he said that his biggest concern was “the chaos which will be caused by the broadcast industry’s inaction”.

     

    Mr Shankar was of the opinion that instead of lamenting the loss of carriage fees, the MSOs should appreciate the opportunity of “customisation and localisation of content” being presented by digitisation.

     

    Though Mr Shankar admitted that there is a need for legislative enablers to remove the bottlenecks, he also said that the broadcast industry is still not ready to move to the digital format. To drive home his point he used the example of the film The Artist, where the star of the silent era films loses out when he refuses to move with times. With this word of caution, Mr Shankar ended his keynote address.

     

    Prithviraj Chavan, Chief Minister,Maharashtra, next took the stage to talk about the “exciting times that we are living in”. He said that the challenge is to adopt the regulatory framework to the new technology and ensure that over regulation doesn’t kill a good thing. He also said that the move towards digitisation will create a huge employment opportunity. He stressed on the need to balance technology with creativity, adding that “growth should not be lopsided but all inclusive”.

     

    Shri Chavan also stated that the government is taking all possible steps to ensure that content piracy is curbed but accepted that the state has not delivered on its promises to curb piracy till now.

     

    He also touched upon the need for regulation and said that regulation is a major challenge. Shri Chavan suggested that instead of the state regulating the media; it should look at self regulation.

     

    Moving on, Shri Chavan welcomed the foreign delegates and announced that his government was creating new centres for film shooting in the state. He stated that the first such centre will come up atKolhapur, where entrepreneurs would be provided with lots of financial incentives. He said that the government will “protect any creative attempt within the framework and not allow any fascists elements to disrupt it”. He also assured the film industry that its concerns over policing on film locations would be looked into.

     

    The Chief Minister also released the FICCI-KPMG Indian Media and Entertainment Industry Report 2012; FICCI-Amarchand Lawbook and ‘Positivity: The impact of television on India’ by The Indian Broadcasting Foundation.

     

    Mr Jehil Thakkar, Head, Media & Entertainment Practises, KPMG made a brief presentation about the highlights of the FICCI-KPMG Indian Media and Entertainment Industry Report 2012.

     

    Senator Chris Dodd, Chairman, Motion Pictures Association of America, who took the stage next, underlined the need to look into stringent regulations against content theft.  “When content is stolen, 95 per cent of the people who contribute to the vitality and success of a film are adversely affected”, he said. Quoting an Ernst & Young report, he said, movie theft contributes to a loss of US$ 1 billion annually and threatens the jobs of half a million people. He stated thatIndiais among the top 10 nations as far as online copyright infringement is concerned. He said that technology (digitisation) and content need each other and one can’t be without the other.

     

    Mr Uday K Varma, Secretary, Ministry of I&B, opened his address by stating that the concerns that the industry had over digitisation and the Phase 3 of FM radio have been addressed by the move to allow 839 new FM stations and 500 community radio stations.

     

    He stressed that the government is committed to ensure time bound digitisation and said that come July 1, the four metros will switch over to the digital format and the plan is to ensure that the move to digitalisation is completed by December 31, 2014. He agreed that the challenge was mammoth- to convert 80 million analog connections to digital format but added that the move will ensure faster and deeper penetration. “This will address a plethora of issues facing the television industry, such as addressability, carriage fees, audience measurement and consumer choice,” he said.

     

    Mr Varma added that in order to combat piracy, they intend to carry out an all-encompassing multi-media campaign during the 12th five year plan period involving all stakeholders from the film and music industries.

     

    He also outlined the ministry’s plan to celebrate 100 years of cinema inIndia. Mr Varma said that the Government of India, in cooperation with the film industry, has a line of activities between May 3, 2012 and May 3, 2013. It also proposes to present a tableaux of ‘100 years of Indian Cinema’ at the Republic Day parade next year where the plan is that the stalwarts of the industry also take part.

     

    Mr Varma also announced that the government is setting up a National Film Heritage Mission to safeguard India’s celluloid history by undertaking picture and sound restoration of more than 2,500 films. In Addition, theMission, with a budget of over Rs500 crore, would also look at constructing preservation vaults for archiving restored material, and for conducting workshops and training.

     

    The session closed after a vote of thanks given by Dr. Rajiv Kumar, Secretary General, FICCI.

     

  • The mood is upbeat at the three-day convention on media and entertainment that kicked off in Mumbai today

    Digital, growth mantras to drive agenda

     

    By A Correspondent

     

    Asia’s largest convention in the business of entertainment, FICCI Frames 2012, will be held at The Renaissance, Powai in Mumbai from March 14 to 16. In its 13th year, Frames is a three-day global convention covering the entire gamut of media and entertainment ranging from films to broadcast, which includes television and radio, to digital entertainment, animation, gaming and visual effects.

     

    The Summitwill be inaugurated by Government of India’s Information & Broadcasting Secretary, Mr Uday Kumar Varma. Senator Chris Dodd, Chairman, Motion Picture Association of America will deliver the keynote address at the inaugural session. Japanis the partner country at FICCI Frames 2012 and will be present with a high-powered delegation comprising key stakeholders from the Japanese media and entertainment industry.

     

    Frames 2012 will present opportunities for business networking, lobbying, and creative and financial collaboration and partnerships. There will also be a series of workshops and master-classes that will be conducted by venerated global gurus who will be busy highlighting the way forward to the assembled delegates. Nearly 2,000 Indian and 800 foreign delegates are expected to attend the event.

     

    The Who’s Who of the Indian media and entertainment industry will join hands with the global industry leaders and experts to discuss and debate and to announce new initiatives at FICCI Frames 2012. Mark Hollinger, CEO, Discovery, Carolyn Everson, VP-Global Marketing Solutions, Facebook, Cameron Bailey, Co-Director Toronto International Film Festival, Bruce Beresford, Director of Oscar-winning movie Driving Miss Daisy, Silas Hickey, Regional Creative Director for Animation at Cartoon Network, Max Howard, Global Animation Consultant and Lecturer on Producing Independent Animated Feature Films for the International Markets, Oscar-winner Harvey Lowry, Hollywood’s Special Effects Guru, and John Bashford, Vice Principal, LAMDA (The London Academy of Music & Dramatic Arts) are some of the globally well-known names who will be delivering keynote addresses, conducting workshops and master classes, and joining the panel discussions in various sessions at Frames.

     

    Other eminent speakers from the world of television, radio and print that would be present include television czarina Ekta Kapoor, Barkha Dutt and Vikram Chandra of NDTV, Sunil Lulla of Times TV, and Puneet Goenka of ZEEL. Print will be represented by Shekhar Gupta, Editor-in-Chief of the Indian Express Group and T.N. Ninan, Editor of Business Standard.

     

    Bollywood too would be adequately represented through eminent faces such as Yash Chopra, Karan Johar, Vidya Balan, Kamal Haasan, Imtiaz Ali, Anurag Kashyap, Farah Khan and Zoya Akhtar.

     

    The theme of this year’s event is ‘Embracing the Digital World’. Dr J S Sarma, Chairman, Telecom Regulatory Authority of India (TRAI) and Mr Uday K Varma, Secretary, Ministry of Information & Broadcasting, will identify and address immediate areas for successful implementation of the digital switchover and also on what’s next in the regulatory and market framework to enable and sustain the transition.

     

    The move to embrace digitization in Cable and Satellite TV services has become imperative as such services have grown exponentially inIndiain the last 17 years. A separate session at FICCI Frames 2012 will deliberate on ways to maximize the power of digital distribution. Industry leaders will share their experiences with Frames delegates, their perspectives on how funding challenges have been overcome in other jurisdictions and the takeaways forIndia. The panelists include Vivek Couto, Founder, Media Partners Asia; Anshuman Mishra, MD, Turner International India; Vikram Chandra, CEO, NDTV; Jagi Mangat Panda, CEO, Ortel; Prof Jonathan Askin, Professor of Law, Brooklyn School of Law, Former Senior Legal Advisor, FCC; Anita Wallgren, US Department of Commerce.

     

    The FICCI-KPMG study on Indian Media & Entertainment for 2012 will also be released on the occasion. Strong growth in tier 2 cities, the continued march of regional media and the rapidly expanding new media business helped the media and entertainment industry log a 12 per cent increase in revenues to Rs729 billion in a troublesome 2011, according to the report. Overall, the industry is expected to grow at a compounded annual growth rate (CAGR) of 15 per cent to Rs.1,457 billion by 2015.

     

    Further details on the event will be available at: http://ficci-frames.com/

     

     

  • According to the FICCI-KPMG report, the growth trajectory was backed by strong consumption in tier 2 and 3 cities, continued growth of regional media, and fast increasing new media business. Overall, the study predicts the industry to register a CAGR of 15 percent to touch INR 1,457 billion by 2016.

    @Ficci Frames 2012: KPMG study says M&E sector is set for good times ahead

    By A Correspondent

     

    HILE the effects of the economic downturn were felt across sectors and industries last year, it was a steady year for the Indian Media & Entertainment (M&E) industry that registered a growth of 12 percent over 2010, to reach INR 728 billon. According to the FICCI-KPMG report, the growth trajectory was backed by strong consumption in tier 2 and 3 cities, continued growth of regional media, and fast increasing new media business. Overall, the study predicts the industry to register a CAGR of 15 percent to touch INR 1,457 billion by 2016.

     

    But despite the positive numbers recorded, the report agrees that 2011 has indeed been a challenging year not just for the Indian M&E industry, or even the Indian economy, but for the larger world economy. While India is still expected to grow at a healthy pace, growth is projected to be lower than expectations.

     

    The report notes that television continues to be the dominant medium while sectors such as animation & VFX, digital advertising, and gaming are fast increasing their share in the overall pie. Radio is expected to display a healthy growth rate after the advent of Phase 3. Print, while witnessing a decline in growth rate, will continue to be the second largest medium in the Indian M&E industry. Also, the film industry had reason to cheer, with multiple movies crossing the INR 100 crore mark in domestic theatrical collections, and INR 30 crore mark in C&S rights.

     

    Advertising spends across all media accounted for INR 300 billion in 2011, contributing to 41 percent of the overall M&E industry’s revenues. Advertising revenues witnessed a growth of 13 percent in 2011, as against 17 per cent observed in 2010. In terms of performance, 2011 proved to be a year with mixed results in terms of growth across different sub sectors. The traditional media businesses experienced a slowdown compared to last year, especially in the second half of the year. However, the new media segments like Animation and VFX, Online and Gaming businesses witnessed phenomenal growth rates.

     

    Highlighting some visible trends spotted in the report, Dr. Rajiv Kumar, Secretary General, FICCI said, “The key highlights are rise in digital content consumption, launch of diverse content delivery platforms, strong consumption in tier 2 and 3 cities, rising footprint of the players in the regional media, rapidly increasing new media business and regulatory shifts.”

     

    Putting forth a more pragmatic outlook, Jehil Thakkar, Head of Media and Entertainment, KPMG said, “The Media & Entertainment industry landscape is undergoing a significant shift. Cable digitization, the promise of wireless broadband, increasing DTH penetration, digitization of film distribution, growing internet use are all prompting strategic shifts in the way companies work. Traditional business models are evolving for the better as a host of new opportunities emerge.”

     

    Key trends and industry drivers:

    – Growth in digital content consumption across media

     

    Key Highlights –

    Print: The print industry grew by 8.3 percent from INR 193 billion in 2010 to INR 209 billion in 2011. The growth was slightly lower than our expectation of 9.5 percent last year due to the challenging macroeconomic environment and reduced advertising spends.

     

    Television: The over-all television industry is estimated to be INR 329 billion in 2011, and is expected to grow at a CAGR of 17 percent over 2011-16, to reach INR 735 billion in 2016. The share of subscription to the total industry revenue is expected to increase from 65 percent in 2011 to 69 percent in 2016. The TV industry continues to have headroom for further growth as television penetration in India is still at approximately 60 percent of total households.

     

    Films: With several high budget Hindi releases lined up across the year, 2012 is expected to sustain the growth momentum witnessed in 2011. The Indian film industry is projected to grow at a CAGR of 10.1 percent to touch INR 150 billion in 2016. The industry is estimated to be INR 93 billion in 2011 indicating a growth of 11.5 percent vis-à vis 2010.

     

    Music: While 2010 was the year of structural shift from physical formats to digital ones, 2011 provided users viable options of music consumption through different digital platforms. The Indian music industry achieved revenues of INR 9 billion in 2011, registering a growth of 5 percent over 2010.
    Radio: Overall, the industry grew 15 per cent in CY 2011 to reach INR 11.5 billion, compared to INR 10 billion in CY 2010. Volume increases in certain markets and rate increases for the leaders in metros drove growth.

     

    New Media: Digital advertising is expected to grow at a CAGR of 30 per cent from 2011-16; digital adspend reached approximately 5 per cent of total M&E industry advertising revenue in 2011. Growth is largely driven by increase in internet penetration and proliferation of new devices.

     

    Animation & VFX: Animation, VFX and Post Production industry achieved estimated revenues of INR 31 billion in 2011, a robust growth of 31 percent over 2010. Growth was achieved on the back of increased contract work, higher VFX content in movies, 2D/3D conversion projects.

     

    Out of Home: The OOH sector was hit relatively harder by the global economic slowdown than other sectors of the Advertising industry. The sector registered a Y-o-Y growth of 7.6 percent.

     

    Digital technology continues to revolutionize media distribution – be it the rapid growth of DTH and the promise of digital cable, or increased digitization of film exhibition – and has enabled wider and cost-effective reach across diverse and regional markets, and the development of targeted media content.

     

    There has been increased proliferation and consumption of digital media content – be it newspapers and magazines, digital film prints, and online video and music or entirely new categories such as social media. Accordingly, online advertising spends have seen a spurt in growth vis-a-vis spends on traditional media.

     

    – Rise of new age user devices

    Smart phones, tablets, PCs, gaming devices, etc. all form the foundation of a new wave in media usage. This is gradually impacting the way content is being created and distributed as well. Multiple media including TV, films, news, radio, music etc are being impacted with this change.

     

    – New age consumers adapting themselves to the newer technologies

    As Indian consumers evolve, there is a heightened need to engage them across platforms and experiences. There is a greater need for integration and innovation across traditional and new media, with changing media consumption habits and preferences for niche content. Media companies today have no choice but to provide more touch points to engage with audiences.

     

    – Regionalisation

    Regional television and print continued its strong growth trajectory owing to growth in incomes and consumption in the regional markets. National advertisers are looking at these markets as the next consumption hubs and the local advertisers are learning the benefits of marketing their products aggressively.

     

    – An advertising revenue dependant industry

    The ARPU (Average Revenue Per User) for television, average newspaper cost for print and average ticket price for films continue to be low on account of hyper competition in these industries. Segments like Radio and a significant portion of online content are available free of cost to consumers. Owing to this, the Indian consumer is still not used to paying for content and hence the industry players are sensitive to the impact of the slowdown which affects the budgets of advertisers.

     

    – Awaited regulatory shifts

    Lastly, apart from the shifts in consumer preferences, company strategies and business models, one big change awaited for the next growth wave is the implementation of recently enacted and regulations on digitisation for cable, implementation of Phase 3 and copyright for Radio and the roll out of 4G. These shifts are expected to be game changers in terms of how business is being done currently and what could be the path going forward.