MxMIndia

Category: STARRED OFF

  • Media analysts and experts don't think there's reason for worry as Star News, Ananda and Majha will replace 'Star' with 'ABP'

    Will the name change work for MCCS?

     

    By Johnson Napier

     

    The media has been agog with news of the two looking at options beyond the relationship, only for them to dodge the belief. But all doubts were put to rest on Monday when media giant Ananda Bazaar Patrika (ABP) finally announced it was shedding the Star branding from its slew of channels.

     

    Star India and ABP agreed to discontinue the Star brand affiliation with Media Content and Communications Services (MCCS). Of the many reasons that were doing the rounds, the one that was loud was discontent over editorial content, leading to the two calling it quits. Star had reportedly served notice in January 2012 (see Mediaah!).

     

    As a result of this decision, Hindi news channel, STAR News will now be rechristened ABP News, while Bengali news channel STAR Ananda will become ABP Ananda and Marathi news channel STAR Majha will be called ABP Majha. The three 24-hour news channels are owned by the Media Content and Communications Pvt Ltd (MCCS) – a joint venture between the Ananda Bazar Patrika Group and STAR India Pvt Ltd. MCCS, formed in March 2003, is a 74:26 joint venture between ABP TV and STAR News Broadcasting.

     

    While the move will enable ABP to venture out in the news broadcast space on its own as it wishes to promote and establish its own brands through its subsidiary company – MCCS, for Star the focus will be on building their brand on their core business, i.e. general entertainment. A release issued on behalf of Star Group read: Given the current regulatory environment and structural issues ailing the Indian cable and satellite television market and the news genre in particular, Star took this extremely difficult decision to withdraw its brand from the genre.”

     

    According to the release, the discontinuation will come in effect in phases from a period of 2-4 months and the partners will work together to ensure a smooth transition during this period.

     

    Speaking to MxMIndia Ashok Venkatramani, CEO, MCCS, said, “No, it’s not a set back at all. With the Marathi and Bengali channels, Majha and Ananda as suffixes are unique and have grown in popularity and acceptance. Of course, that’s not the case with Hindi where the suffix is ‘News’ and hence generic. So, yes, Hindi is a challenge on a relative scale, but not so with Marathi and Bengali. (see interview)”

     

    But while the three channels have identified a name for themselves in the respective markets and have been engraved in the minds of the viewers for a long time, it will be interesting to see how a name change exercise will impact the course for the network over a period of time.

    “The first 180 days of a brand name change are the most crucial and critical days. It is in these frenetic days of frenetic brand activity that a name change can be made successful or not,” writes note brank expert and consultant Harish Bijoor in an exclusive analysis on the name change for MxMIndia. “No wonder then that you see a flurry of advertising activity that goes in to establish a new name solidly in the mind of the consumer.”

    Drawing implications over the new announcement, Anita Nayyar, CEO India & SouthAsia, Havas Media said that the popularity of the channels may take a beating if they toy around with the content and if the change is not expressed loudly and clearly to the viewers. “One will have to assess the extent to which the two have called a split in partnership. But if you see the association, Star, as such is a name that has been engraved in the minds of the people for a long time, and therefore it will be tough for the viewers to overnight respond to the change in a positive way. If they announce the change in a big way and do tremendous activity and promotions around it and create awareness levels, then only will the audience respond to the change. Otherwise past examples have shown that no matter how big a brand or name, if the change in name is not relayed properly to the masses, it will see a decline in popularity and fortunes.”

     

    On the impact it would have on the advertisers, she said: “It will be a wait-and-watch game for the advertisers. I feel the current deals will go on as scheduled but new deals will depend on what the change will hold in store for the brand.”

     

    Mona Jain, CEO, Vivaki Exchange, said: “I don’t see the change having any impact on the popularity or the ratings as such. First, one will have to see what is the exact nature of the deal? If the team and other infrastructure related activity remains the same then there wouldn’t be an impact as such. Also, what is important is the quality of content that is played on these channels. If there is no change from the previous deal, then the viewer will continue to stick to the channels the way they used to earlier. We will have to see how it pans out over the course of time.”

     

    According to Tarun Nigam, Executive Director, India North, Starcom Worldwide, this could be an opportune time for ABP to make a name for itself in this arena. “I don’t see this development having any impact on what is currently being offered. If the content remains the same, if there is no breakdown in team and so on, then it shouldn’t matter at all. In fact I think this is a perfect opportunity for ABP to finally make a name for themselves in the news broadcast space, as they already are a big name in the print space. They, anyways, are a very strong and deep-rooted organization and have sustained themselves as a commendable force to reckon with.”

     

    According to Nigam, in a market like Kolkata where ABP are a dominant force, this deal will enable ABP to showcase more regional offerings that they specialize in, which will only catapult the interests of the viewers at large. “One will have to wait and see what will be effects of the change in other markets like Maharashtra,Delhiand others. For all you know, ABP might just emerge a stronger player in these markets as well.”

     

    The ball, for now, seems to be in ABP’s court as they finally get to pursue their dream of going solo and 360-degree in the news space. With healthy ratings and a roster of loyal advertisers willing to cling on to them, the priority for ABP is now to endorse an enduring message to one and all and go loud with their promotional activities announcing the new shift. Till then it is wait-and-watch.

     

     

  • Only a drop in quality can impact a news channel, says Ashok Venkatramani, CEO, MCCS

    A channel is vulnerable only if quality drops: Ashok Venkatramani, CEO, MCCS

    By A Correspondent

     

    A mechanical engineer from Mumbai and MBA from IIM, Ahmedabad, Mr Venkatramani started his career with Unilever, and was with the FMCG giant for 19 years. He held the position of Vice President and Business Head for Unilever inIndiatill February 2008, heading their largest and most profitable business – toilet soaps and skincare business.

     

    From Unilever, Mr Venkatramani moved to being appointed CEO of the Star-ABP JV which ran the news channels of Star India.

     

    While the buzz in MCCS that we are hearing is very positive, what we hear is that the end of the alliance will possibly see MCCS expanding into more channels… a Punjabi news channel, for instance?

    We are always on the look-out for growth and this development has nothing to do with it. I think we have the scope to grow organically and inorganically and we are constantly evaluating options.

     

    While it’s the content that should speak for a media entity and not its name, the fact is that Star is a household brand in the country. Do you see a setback for the Hindi and Marathi news channels since ABP may not necessarily strike a chord with viewers?

    No, not a set back at all. With the Marathi and Bengali channels, Majha and Ananda as suffixes are unique and have grown in popularity and acceptance. Of course, that’s not the case with Hindi where the suffix is ‘News’ and hence generic. So, yes, Hindi is a challenge on a relative scale, but not so with Marathi and Bengali.

     

    Would you expect more synergies with ABP print from now on?

    There will be no significant change on this front… it will be what it has always been.

     

    So will we now a see a blitz to communicate the name change?

    Yes, there will be an aggressive campaign to announce the change, especially in Hindi.

     

    Will the change impact MCCS… your key resources, and the way the business has been done?

    No change whatsoever.

     

    There have been many cases of brands changing in the past. In telecom in Mumbai, we’ve seen Max Touch becoming Hutch, Orange and finally Vodafone. But what is fine for telecom, may not be the case for media, right?

    Yes, there are several changes. UTI Bank to Axis Bank, L&T Cement to UltraTech Cement. When there is a name change, there’s no shift in consumer base. People don’t change their bank or telecom provider as long as the service quality is maintained.

     

    So you are vulnerable only if the quality drops, and that can happen even if the name doesn’t change!

     

  • What does a name transition mean to companies and brands? Plenty really, writes brand expert Harish Bijoor

    Harish Bijoor: What’s in a Name?

    By Harish Bijoor

     

    So STAR News is ABP News. STAR Ananda is ABP Ananda. And STAR Majha is ABP Majha.

     

    Here’s a brand name change once again, and the question is out in debate again: What’s in a name?

     

    What’s in a name? Plenty! Shakespeare-dada was wrong!

     

    For a start, the name is a brand. The brand is a name. And the name is a very important starting point in the voyage of discovery of a brand.

     

    Let me start with my definition of a brand. It is a simple one. I define the brand with the consumer simplicity it deserves. “The brand is a thought”! A thought that lives in people’s minds. A thought that thrives in the soft-space of the human mind.

     

    By this definition, everything that lives as a thought in your mind is a brand. Shantabai, the multi-tasking maid is one, Osama Bin Laden, the late terrorist is one and so is the young Akhilesh Yadav. Each of these brands possibly rub shoulders with other brands such as an Amul and Bata and Tata in your head. The brand is a thought. Nothing more. Nothing less.

     

    What does a name transition mean to companies and brands? Plenty really. Plenty in the initial six months for sure. The first 180 days of a brand name change are the most crucial and critical days. It is in these frenetic days of frenetic brand activity that a name change can be made successful or not. No wonder then that you see a flurry of advertising activity that goes in to establish a new name solidly in the mind of the consumer.

     

    There are brands that have done it well. Vodafone is a veteran of many changes. An Orange became a Hutch seamlessly, just as a Hutch became a Vodafone seamlessly. Every change was accompanied by a high decibel campaign that had transition elements of one collapsing seamlessly into another. The first 180-days are therefore the most critical. You can make a brand name transition happen or collapse. Both are possibilities. The period after just does not matter. This is really the Golden six months of a brand name transition.

     

    UTI Bank did it seamlessly as well, with a transition into an Axis Bank so seamlessly that today UTI is a non-important part of its total brand equity and recall altogether. That is the power of a powerful brand-name transition plan.

     

    In the case of this current transition from STAR to ABP, there are indeed two big brand names. One is a region-centric one (ABP) and the other (Star) is a world-brand for sure. Moving from one to the other will require some degree of panache and scientific brand action.

     

    There are really two sets of dynamics in this transition. One is a B2B dimension. Out here, MCCS is the back-end brand. It is the company that runs the show. It is the company that is the backbone. Employees, clients who advertise, distributors and vendors are all key participants here. These key actors are the easiest to communicate to. These key actors will buy into this name change without a whimper.

     

    The second set of dynamics is that of the viewer. This is B2C space. This is where there is bound to be ruffled feathers and ruffled sentiment. This is where there is bound to be confusion and lack of clarity. This is really the end that needs to be handled well and seamlessly through a process of cogent communication.

     

    STAR News is a thought. The thought of a channel can be a potent one. It starts with the name at hand, and goes on to attach to itself a host of other meta-tags that bring to mind the memory of a channel that is an intrinsic part of compelling and credible viewing experience.

     

    The brand to that extent is plenty. It is a name. A slogan. A symbol. A colour. A character. A personality. A charisma. An image. A reliability. An emotion. A passion. A perception. And lots more. ABP needs to handle each of these. With kid gloves, speed and scientific brand action.

     

    The author is a brand-expert and CEO, Harish Bijoor Consults Inc.

    Twitter.com @harishbijoor

     

  • Differences have been simmering between the ABP and Star India groups with the latter choosing to opt since it couldn’t exert control without majority shareholding

    Mediaah!: So what let to the Star-ABP split? Will Star start a new news channel?

    By Pradyuman Maheshwari

     

    In many ways, Mediaah! owes its existence to the controversies around Star. Many moons ago – in July 2003 to be precise – the network was facing rough weather from rival interests on the issue of foreign equity in some of its ventures – especially news and radio. Most pro-FDI media entities were muted in their response, and realising that it was necessary to have an independent and active media observatory, I set up Mediaah!.

     

    Given the pains that both parties went through to get together in their early days, it’s sad to learn of Star withdrawing its branding from its news channels managed by MCCS, an joint venture with the Ananda Bazar Patrika (ABP) group. No, Rupert Murdoch hasn’t exited the Indian news TV business. Star will continue to be a 26 percent partner in MCCS, but the only difference is that the channels will no longer be prefixed Star, but ABP. So: ABP News, ABP Ananda and ABP Majha.

     

    Before the Kolkata-based Ananda Bazar Patrika turned majority (74 percent) shareholder (in September 2003), there was a time when the Star News was part-owned by folks like Kumarmangalam Birla, Vir Sanghvi and Suhel Seth.

     

    So what led to this divorce? The reason that a Star India communiqué says is:

    “Given the current regulatory environment and structural issues ailing the Indian cable and satellite television market and the news genre in particular, Star took this extremely difficult decision to withdraw its brand from the genre. Star, ABP and MCCS sustained this affiliation for a lengthy period of 8 years and Star is grateful to its partners, ABP and MCCS for acting as guardians for the Star brand during this period.”

     

    The communiqué adds that this was “one of the steps proposed to be taken by Star in its endeavour to refocus and re-energize the core strength of its business viz. general entertainment channels”.  Note the choice of words in this carefully drafted statement. Announcements of this nature have been subjected to various checks, so you’ve got to read between the lines.

     

    Hence it’s possible that Star might withdraw entirely from the venture. But what’s this bit about re-energizing the core strength of its business – GECS… Star recently exited Hathway, a cable TV company where it had minority stake. Could it therefore also move out of Tata Sky?

     

    Meanwhile,  given the regulator environment cited for withdrawl, does it mean that Star will not return to the genre? Also, there has been no change in the regulatory framework in the last 8 years… why this shift in thinking now?

     

    My questions to Star India have not been answered, but from I understand, yes, the restriction on ownership is the real reason. Star, my sources tell me, wanted greater control of the network (which is impossible with minority control). Since it already handled distribution, it also wanted to look at other non-editorial operations – specifically sales. Star now leads the sales effort for NDTV.

     

    Even on content, Star wanted some say. As the channels bear the Star branding, there have reportedly been occasions when the GECs have lost business due to what’s aired on Star News. Since the Star brand is well-known, the network’s top brass would often be at the receiving end from governments and private corporations.

     

    The problems have been simmering for a bit. Star was apparently unhappy that ABP launched a Bengali GEC to counter its own Jalsha and ABP in turn was said to be upset when Star chose to handle sales for NDTV. MCCS insiders also tell me that these differences were cramping their work and impacting the company’s desire to grow.

     

    “It was an ego battle,” a senior manager told me adding that I shouldn’t be surprised if Star were to come up with a rival channel a year from now. There could be issues on that score though. There is apparently an 18-month cooling off, no-compete period. But, of course, the new channel needn’t be christened Star News. Also, Star India is said to have served the notice on ABP in January this year, so 18 months is just a year away.

     

    Remember, Star India CEO Uday Shankar was CEO of MCCS, a role that he took on after many years as a journalist and editor, and from he has told me in the past that he isn’t happy with the way Hindi news channels were doing (in content) and wouldn’t mind going in for a news channel if and when possible.

     

    So what next?

    MCCS staff is happy to be part of the ABP group, known for its progressive outlook and emphasis on quality deliveries. Not that Star isn’t that, but the ABP group is known to be a fair employer. What they are worried about is the immense challenge that Star News will face with the rechristening. In fact, given that it’s been doing rather well in the TAM ratings roster, this development is a blow. Even MCCS CEO Ashok Venkatramani, in his interview to MxMIndia, concedes that while Majha and Ananda were popular prefixes, the new identity for Star News will be a challenge.

     

    The ABP News logo is ready was unveiled to the staff, with an advisory that it should not be leaked out. Bossman Aveek Sarkar is said to be keen that the switchover happens even before May 31.

     

    My own sense is that Star India will eventually get out of the jv entirely. MCCS is now profit-making and it aggregated sales of around Rs 300 crore in the last fiscal. Private equity players may invest in the enterprise but will be a little wary of how much the Star exit from the brand will take away from the company’s shine?

     

    The brands may take some to regain their shine, but the one thing that is certain to grow at the all-new ABP News channels will be quality journalism. That much one has to grant the Sarkars.

    As for Star, remember Rupert Murdoch is essentially a newswallah. So’s Uday Shankar.

     

    Buzz me if you have a story to tell. Confidentiality assured. There are various ways you can reach me:

    pradyumanm[at]mxmindia.com, BBM 23050B5D, Gtalk pradyumanm@gmail.com, Twitter @pmahesh and of course the mobile: 98338 76278.

     

    Disclaimer: Although he is CEO and Editor-in-Chief of this site, Pradyuman Maheshwari’s views in Mediaah! are not necessarily those of the rest of the team and MxMIndia.com. And decidedly not those of the sales team 🙂

     

  • With the baggage of 'STAR News' off their back, they can re-engineer the channel, and ABP News can become that one Hindi channel that takes news very seriously

    Anil Thakraney: Will ABP News eschew sensationalism?

    By Anil Thakraney

     

    So, STAR News is ABP News. Now the two partners have decided to separate. Cool! But my question is: Will this just be an exercise in name change, with all else continuing to be the same? Exactly as the messBombaycontinues to be after the name changed to Mumbai? Ditto with Bengaluru and Poschim Bongo. (As for the last, it’s getting messier with Didi in charge, but I shan’t say more, else she’ll get me arrested.)

     

    Well, I hope not. Now that Ananda Bazar Patrika has total control, I hope the Bengali group, known for its ‘respectable journalism’, extends that respectability to ABP News. STAR News, along with the other Hindi news channels, has always thrived on speculation and rabid sensationalism. It’s almost as if the category owners had decided that Hindi news watchers are restless morons, folks who will only come back if the content is absurd and outlandish. This is obviously not the case.

     

    The problem is, the channel owners DECIDED to be sensational; in their war for ratings, they chose that route. The viewer never asked for it. And in this march of madness, all the Hindi channels fell like nine pins, as each struggled to beat the other guy on dishing out dramatic stuff. Net result: There is very low credibility with the Hindi news channels. We visit them for tamasha, not authenticity.

     

    The point I am trying to make is this: ABP has that chance now to set things right. With the baggage of ‘STAR News’ off their back, they can re-engineer the channel, and ABP News can become that one Hindi channel that takes news very seriously. It can break the cycle of sensationalism, and position itself on the platform of credibility. In any case, with all the hair-raising content on display amongst the various channels in the category, this will provide ABP News a clear brand differential. So it seems to make sense from the marketing point of view as well.

     

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

    Yup, India badly needs a Hindi news channel it can trust. And hopefully ABP News will try to be that. One sincerely hopes the name change doesn’t only mean a change of name. Like when Bombay became Mumbai. And continues to be a filthy slum city.

     

    * * *

     

    PS: Cute commercial from Audi. It’s inspired by the fairytale of how the ugly duckling changed into a lovely swan. Superb execution.

     

  • Star India has ended its alliance with Ananda Bazar Patrika on the news channels Star News, Star Ananda and Star Majha

    Star India ends alliance with ABP on news channels

    By A Correspondent

     

    It’s now official. Star India has ended its alliance with Ananda Bazar Patrika on the news channels Star News, Star Ananda and Star Majha Star India Pvt Ltd and ABP, the principal shareholders, have agreed to discontinue the Star brand affiliation with Media Content and Communications Pvt Ltd (MCCS). Going forward, Star wishes to focus on building their brand on their core business that is general entertainment, a communique signed by MCCS Chief Executive Officer Ashok Venkatramani said.

     

    “Given the current regulatory environment and structural issues ailing the Indian cable and satellite television market and the news genre in particular, Star took this extremely difficult decision to withdraw its brand from the genre,” a communique from Star India said.

     

    MCCS today announced that its popular Hindi news channel, STAR News, will soon be rechristened ABP News. Bengali news channel STAR Ananda becomes ABP Ananda and Marathi news channel STAR Majha will be called ABP Majha. The three 24-hour news channels are owned by MCCS , a joint venture between the Ananda Bazar Patrika Group and STAR India Pvt Ltd.

     

    MCCS has sustained its affiliation with Star brand for 8 years and both have benefitted from this association. The core business of the ABP is news and it wishes to promote and establish its own brands in the broadcast news space through its subsidiary company – MCCS, the communique added.

     

    The discontinuation will come in effect in phases from a period of two to four months and the partners will work together to ensure a smooth transition during this period.