MxMIndia

Tag: MSM

  • With Sony Pictures Television announcing its decision to buy 32 per cent stake from minority shareholders in a phased manner, its equity in Multi Screen Media (or MSM which runs the channels Sony, Sab, Max etc) will go up to 94 percent. This, says CEO Man Jit Singh, reflects Sony commitment in MSM and will allow the Indian enterprise to grow faster

    Sony’s stake hike allows MSM flexibility: Man Jit Singh. Regional/niche channels on anvil

    This is one soap that Sony Entertainment Television bosses are happy to see the end of. Over two decades ago, a group of seven entertainment industry biggies (including then superstar Jackie Shroff) and Sony Pictures got together to launch Sony Entertainment Television.  There were also rumours of senior minister Sharad Pawar’s brother-in-law Sadanand Sule having a stake. Multi Screen Media, as the company was called, had a complex shareholding, as is the case with many Indian corporations.

     

    Four years back, the minority shareholders were in a legal tangle which was finally resolved, but it was evident that they wanted to cash out soonest.

     

    So when the communique reaches media inboxes on Sony Pictures’s announcement of an agreement to acquired around 32 per cent of MSM’s shares currently held by Grandway Global Holdings Limited and Atlas Equifin Private Limited. The transaction, which will bring Sony’s stake in MSM to a little over 94 per cent, will close by end-December 2012.

     

    Under the terms of the agreement for this acquisition, aggregate cash consideration of $271 million will be paid by SPT to Grandway and Atlas, subject necessary government approvals, with $145 mn to be paid by December 2012 when the transaction ends and the balance $126 million will be paid in in three equal annual installments starting from the fiscal year ending March 31, 2014.

     

    “SPT has enjoyed great success with our channels in India and this acquisition further demonstrates our commitment to entertaining Indian audiences,” said Andy Kaplan, president, worldwide networks, SPT in a statement. “We’d especially like to thank Grandway and Atlas for their entrepreneurial spirit that helped to get this venture off the ground 17 years ago.”

     

    MSM chief executive Man Jit Singh (who as a Sony representative was chairman of the Board even when Kunal Dasgupta was CEO) spoke to MxMIndia’s Pradyuman Maheshwari from London on phone. Excerpts from the interview:

     

    This thing has been going back and forth for a while between Grandway, Atlas and Atlas.

    Yes, it’s been some time.

     

    So, is it only a cash transaction or with there be a non-cash consideration as well?

    As stated in the press release that it is $271 mn transaction of which there is a upfront payment of $145 mn and then three equal installments.

     

    And the balance 6-odd per cent?

    The balance 6 per cent  is held by a fund called the Capital Group which is not part of this transaction.

     

    Capital has had some stake for a while…

    Yes, they’ve held the stake from 2001. The Indian stakeholders are exiting. Capital Group is another transaction.

     

    Are you happy with the 1 bn-odd valuation of the company?

    We are delighted with the valuation which happened at the end of an extensive private equity process which determine the market value and then Sony stepped in and decided to acquire the stake, which for us is great news. Because now: a) it show Sony’s commitment towards India and to the channel operation and b) it will give us a lot of flexibility in running our business. And we’ll be able to make investments as we go forward. So, we are delighted with this news.

     

    In the year around 1999, I think the evaluation was something around 2.5 bn. And that was of course the first high that Sony had reached. And now it’s come down quite a bit.

    As you know, perhaps it was a little later. But as you know during the dotcom period the valuations which were thrown around were extraordinarily high. I think that it was a moment in time, the markets have settled and businesses have fairly matured and I think the valuations are where they are and they are correct.

     

    You mentioned that this will allow some more freedom for doing various things so anything on the anvil. You’ve spoken about regional channels in the past and you did buy this Bengali channel. Anything more…

    As you know, we are in the process of acquiring a stake in Maa TV which we have announced already and that will continue. We’ll take opportunities as they come and we now have the flexibility to move quickly and consummate those opportunities. And we look forward to doing that.

     

    Is there any particular direction that you are looking at?

    We are certainly looking at regional channels as we are interested in regional channel space. And as you know we have made a major investment in our sports channels. And we expect that sport is an area where you have to continue to buy rights when they become available because you have to bid for them. And we’ll be in a position to make those investments when they come to us.

     

    But those investments you have made. Sony is already investing a fair bit for this acquisition and you’ll have to make a lot more investments for all of this.

    Correct.

     

    That mandate you have received…

    Yes. By investing in MSM, Sony has shown its willingness and enthusiasm for the Indian market. And they are very very open to continue….

     

    Is there anything else you are looking at other than channels because digitalization will allow all that to happen?

    Absolutely. We believe that digitalization is going to make us able to deliver different kind of content to smaller segments of viewership. So we believe that there will be opportunity to create niche channel. This will certainly help us by allowing us to look at all those opportunities. We believe there is a good amount of things that can be done over the next two-three years.

     

    The last two years have been tremendous for MSM because we have Sony doing so well, SAB is doing so well and IPL hasn’t been too bad. So would you credit that for the way things are right now and at Sony’s commitment?

    I think you have to look at Sony’s commitment which was committed in the good times as well as in the bad times to MSM. It is only that its bigger commitment is to the Indian market. Sony has always believed that India is one of the most important of the BRIC countries and it’s a place where Sony must invest and grow the market. So there has been a commitment to India. So we should give them credit for being consistent in their beliefs that India should be one of the key markets in which certain focus is on. And not only that but on the channel business, our electronic business side, it is a growth market for us on both sides.

     

    And will we see some synergies with all of that all, in the near future?

    Absolutely. This will give us much more flexibility to be able to create synergies between our electronic groups and our channel business. And we see opportunities to bring things together.

     

    Is there a possibility of a change of the company name now that Sony’s ownership is near-total? Perhaps Sony Entertainment Television…

    Why you don’t like MSM?

     

    No, I love it. One has got used to it. But still the fact is that now since it’s a Sony it could well be called that. Is it on the cards?

    I’ll be honest; we don’t have any plans to do that. But thank you, I’ll think about it (laughs). I’m quite happy with MSM, maybe because we all came up with it. There is no such plan. We are quite satisfied with it. Also, the channel is Sony Entertainment Television. So, I’m not sure if we’ll need to change the company name. Let’s put it this way, there has been no talk on this.

     

    With inputs from Meghna Sharma

     

  • The first phase of the content plan is to make most of the Indian Premier League's five editions and evoke special interest among fans to watch non-cricketing sports such as mixed martial arts, basketball, badminton and football

    MSM hits the ball hard for Six

    By Rishi Vora

     

    It’s been about two years since it was first heard that Multi Screen Media Pvt Ltd (MSM) will launch a sports channel. The wait is finally over as the channel was launched on April 7. This is MSM’s sixth channel – one of the reasons why the network chose ‘Six’ as its brand name.

     

    The TG for Six is skewed slightly towards the younger lot of sports fanatics and the first phase of the content plan is to  make most of the Indian Premier League’s five editions and evoke special interest among fans to watch non-cricketing sports such as mixed martial arts, basketball, badminton and football. Its main property, to begin with, is Ultimate Fighting Championship (UFC), a martial arts contest that has more than 30 events globally. The next season of IPL will be aired on Six.

     

    The channel will reach out to 80 million homes on DTH and analog platforms in India with a reach of 20 million in phase 1.

     

    Six is being promoted heavily on network channels and the on-air biggest cricketing property, IPL. Quite surprisingly, the channel has not gone for a 360-degree marketing blitzkrieg – the usual strategy adopted to support the launch. It is learnt that outdoor and radio will subsequently follow promotions on TV.

     

    If one looks at the sports broadcast arena as is currently placed, it makes an interesting read. Neo Sports and Ten Sports are facing a tough time sustaining business. And, of course, the fact that IPL was running on a sticky wicket as far as sponsors are concerned, tells the story – that advertisers feel there’s no point investing big monies where the returns are not very good. Plus, the recent development of Star winning the BCCI rights… something which MSM was eyeing to provide that much required impetus for the new channel, is a sure-shot big miss of opportunity.

     

    “We have the IPL and as we move along, we hope to acquire more rights,” said NP Singh, Network COO. He confessed that the BCCI rights was an opportunity missed, however, he also said: “It was in our long term interest to launch a sports channel. We had been talking about it, so it wouldn’t have made sense to further delay the launch just because we did not win the rights to broadcast Indian cricket.”

     

    According to a senior media planner who wished anonymity, the launch of Six has happened at a time where it may not be easy for the channel to make a mark. “Cricket is the only sport India loves. Besides IPL, Six doesn’t have much to offer. Also, there isn’t much left as far as rights are concerned, so the channel will really have to do well on non-cricketing sports, which is a big challenge in a country like India.”

     

    Ms Basabdatta Chowdhury, CEO, Platinum Media is of the opinion that though the channel might face many roadblocks, in the end it’ll be a sustainable business. “I think there is space for one more sports channel. It depends on what kind of content they bring to the channel. Football is quite popular in some sections of the country and they will look to target them. Similarly, other sports which have their specific audiences in the country. If the channel does well in targeting these niche sections, it’ll sustain. And of course, they have the IPL and the New Zealand board for cricket lovers.”

     

    Mr Anwesh Bose, Senior Vice President, DDB Mudra Max offers a similar view: “MSM has made very good profits this year and that would give them muscle to gain rights from other cricket boards around the world, they already have the New Zealand Cricket rights. In addition, there is football and a few other sports to look forward to. With the new channel, new vistas would open for Sony and given their past successes, they can surely make a profitable venture out of the sports channel.”

     

    He further added: “They still have five years of IPL left and they will make good use of it.”

     

    Overall, there are mixed reactions on the prospects of MSM’s new channel, Six. One major worrying factor is that there aren’t many rights left to be acquired, and those which are, are available at exorbitant prices, making sports broadcast a challenging business.

     

    As the Network’s COO mentioned, every time they’ll (channel execs) step out to get the much important rights, the attempt will be to go for a six.

     

    Time will tell how well they hit the ball.

     

  • Last year's cricket World Cup impacted the IPL adversely, but advertisers are hopeful of a better showing this season.

    Better innings for IPL 5?

     

    By Rishi Vora

     

    At a time when India’s economy is slowing down and the advertising-media industry is facing a bit of a setback, the Indian Premier League readies itself for a mega show which, experts believe, will come as a relief to all stakeholders – the broadcaster (Multi Screen Media Pvt Ltd in this case), advertisers, sponsors and of course, the franchise owners and the otherwise cash-rich BCCI.

     

    There is a great deal at stake as far as the actual delivery of the event is concerned, with crores of rupees spent by brands on sponsorships and advertising, and the question doing the rounds within the media fraternity is whether IPL season 5 will deliver well on the ratings front.

     

    As Sundeep Nagpal, Director, Stratagem Media, said, “All else notwithstanding, we could do well to consider that Indians are emotional about IPL. It’s almost like it’s a contest for the Indians, by the Indians, even if it’s not of Indians only. So this is good enough to get over any overdose. Secondly, memories of test cricket losses, or Sachin not getting his 100th ton, no matter how sordid, would by then be two months old and have faded by the time the IPL gets under way. Besides that, clever marketing has always propped up the IPL. And if some of our heroes click during the tournament, that would bolster the popularity ratings even further, because let’s not forget, success tastes even sweeter after failure.”

     

    The general sense is that even if it doesn’t match the success of the first two seasons, the event will put up a better showing than last year, where it delivered an average rating of 3.91 across 74 matches, the lowest ever in four years.

     

    The primary reason cited by media planners and observers was that the ICC World Cup and India’s win that contributed to the slump in IPL viewership. It may be recalled that a few advertisers had stayed away from the event last year, having chosen to advertise with the World Cup which had preceded the IPL.

     

    But this year, it’s going to be very different, says Rohit Gupta, President, MSM: “IPL is the single biggest property. So I don’t see any reason for it to not deliver as per expectations. The cricket fatigue or India not doing well does not impact IPL in a big way. It’s a different format altogether. Viewers look forward to IPL every year, for it promises live entertainment.”

     

    Punitha Arumugam, CEO, Madison Media, says, “India’s recent losses and a slowdown in ad spends, especially in the non FMCG segment will impact the advertiser’s sentiment on IPL. However, given the prime time of IPL for over six weeks day after day, we expect the viewership to be sustained.”

     

    Divya Gupta, CEO, Dentsu Media, is even more upbeat: “IPL viewership will not be affected, at all. Consider this – the IPL game and format is completely different. Team performance and outcome can change with every game. And IPL is beyond just India Team performance. It is live entertainment, at its best!”

     

    MSM will be heavily promoting the event, which is scheduled to begin on April 4. Mr Gupta added, “We have marginally increased the ad rates (about 10 per cent). We hope to sell out our inventory well before the tournament begins.”

     

    Though Mr Gupta refused to divulge names of advertisers, industry sources have said that TV screens will be buzzing mainly with players from the telecom sector. Brands like Vodafone, Idea, Tata Photon and Pepsi have agreed to be a part of IPL this year.

     

    Rema Harish, Co-Founder, DoMore Communications, says, “Advertisers may lose out a bit as far as ROI is concerned because cricket seems to have lost its charm among fans in India. There is a sense of fatigue and also the fact that the Indian team has not performed well in the recent past. While advertisers are aware of the risk, they’re betting on IPL because it is the only event in that size, promising greater reach and visibility.”

     

  • The challenges for Pix are on two grounds: one is to be No 1 in the category emphatically and convincingly, beating both Star Movies and Movies Now, and then to ensure profitability and growth quarter after quarter, year after year.

    The Pix plan for genre leadership

    By Rishi Vora

     

    Sony Pix, the English movie channel from the Multi Screen Media Pvt Ltd (MSM) bouquet is, with aggressive content acquisition and marketing strategy, looking to push its channel share up in a bid to get to the top league. Where competition is quite intense between Star Movies and Movies Now. This year, the channel shifted its focus from its positioning – ‘We Tell Stories’, to ‘Hollywood is Here’. The strategic tie-up with Sony Pictures Entertainment has given enough strength to the channel as far as content is concerned. The deal was finalised in 2010, which means starting 2011, Pix has done enough on the programming bit to enter the much-desired Hollywood mainstream space.

     

    Commenting on the progress of Sony Pix, Executive Vice President and Business Head, Mr Sunder Aaron said, “The channel has delivered great results over the last couple of years. Today, we’re a consistent major player in the category. We have been fortunate to achieve our goals in terms of ratings, reach and distribution. The channel’s new library from Sony Pictures Entertainment, which includes some of the finest titles and  block busters have delivered great numbers.” Elaborating on the channel’s content efforts, Programming Head, Mr Amogh Dusad, said, “This year, we premiered six to seven movies every month, all blockbuster films. And that helped us improve our overall ranking in the category.”

     

    The channel saw yet another big change in 2011 – on the packaging and presentation aspects. Himmat Butalia, Marketing Head, Pix, said, “We consciously tried to look at the younger audience and see how we could engage them in various ways. As for promoting our titles, every movie has a different kind of a marketing angle to it.”

     

    “The Movie Club, one of our major properties, has done well. We’re at 15,000 members now from 4000 a few months back. The reason it’s such a fantastic property is that it allows viewers to watch movies absolutely free of cost. The channel’s marketing efforts include a mix of offline and online (Facebook brand page and YouTube, Webisodes etc) campaigns.

     

    With a host of programming and marketing initiatives, Mr Aaron referred to how Sony Pix beat HBO in the ratings game, in 36 out of 47 weeks.”Ratings of the past quarter shows that Pix has upped its market share to 19 per cent as compared to HBO which stands at 14 per cent (source: TAM, CS 15 +, 6 metros, SEC AB, Week 27-39).”

     

    For the next quarter, we want to take Pix into the leadership position. While we have been No1 in the category, and have been No 1 in every market from time to time, we want to be in that position on a more consistent basis. The performance of the channel over the past 18 months has shown that this is achievable. The growing response from our fans has overwhelmed us. The future also holds a lot more big titles premiering on the channel. We will do our best as a channel and as a brand to continue innovating, surprising and delighting our audience.”

     

    The Movies Now- Star Movies tussle; Opportunity Sony Pix
    The launch of Movies Now shook up the line-up a bit. One week after launch, the channel managed to grab the No 2 position. This, as experts view, happened at the back of a huge distribution push, investment on content – acquiring a few big-ticket movies, and then the strategy to repeat those titles on a regular basis. What Movies Now success did, is broad-based the category, so from 60 GRPs, the category of English movies has increased to about 75 GRPs. However, the channel did begin to see a dip with Star Movies catching up. Mr Dusad remarked, “Movies Now being beaten by Star Movies is an indication that sustaining leadership is a challenge if you’re not investing in content on a regular basis, acquiring new titles, doing premiers etc.” In the last six months, Mr Dusad pointed out that Pix beat HBO in 23 weeks, and that they’re looking at taking on the top two players with a host of new initiatives in 2012 (TAM CS 15 +, SEC AB, 6 metros). The idea is to first get to channel share of 20 per cent.

     

    The challenges for Pix are on two grounds: one is to be No 1 in the category emphatically and convincingly, beating both Star Movies and Movies Now, and then to ensure profitability and growth quarter after quarter, year after year.

     

    Another challenge as Mr Aaron pointed out will be to increase the number of advertisers on the channel, and help generate higher revenues, thus leading to higher budgets in acquiring bigger and better titles. On how well has the channel done in the past one year revenue wise, Mr Dusad said, “I can’t share the numbers, all I can say is that we’ve been growing at a decent rate. Clients are happy to spend more with us. Every year, our range of advertisers is increasing and the money spent by them on the channel is also increasing. And we’re seeing a lot more stability in our growth.”

     

    Digitisation will bring in subscription revenues – a big opportunity, now that the ordinance is passed by the government. The category growth, which is about 30 per cent, the channel will do well to achieve similar growth. There’s a lot to be done for Pix to be No 1. Who knows what’s in the offing. Zee Studio is behind Pix, though with a much lesser share. Coming from the Zee stable, one cannot write the channel off.

  • MSM appoints Ms Smriti Krishna as Sr Vice President & Head of Human Resources for the network.

    Smriti Krishna is MSM’s Sr VP, HR Head

    By A Correspondent

    In their continuing efforts to get the best talent on board MSM, the network has announced the appointment of Ms Smriti Krishna as its Senior Vice President and Head of Human resources.

    Ms Krishna recently relocated to Mumbai from Singapore where she was Vice President and Head of HR for NBC Universal Asia Pacific. Prior to Singapore, she has worked in New York, Tokyo and India with the General Electric Company (GE) and its affiliates in significant HR leadership roles.

    Ms Krishna has a rich background in Human Resources and has been recognized for her work on driving many leadership-based, talent development practices and establishing HR as a strategic and integral part of the organization.

    She started her career with Xerox India before joining GE in 2000. She has an MBA from IMI, New Delhi and is a BA in Psychology Honours from Lady Shri Ram College, New Delhi.

    Commenting on Ms Krishna’s appointment, Mr Man Jit Singh, CEO MSM said, “We are glad to welcome Smriti Krishna to the MSM family. We are confident that Smriti’s experience in Human Resources and her global perspective will contribute to the growth of our network and our people. We wish her all the best for her new role.”