MxMIndia

Tag: Pankaj Raj

  • Pink slips, pay cuts and no fresh hiring see a severe slowdown in the Indian media sector

    Jobs in Media: Slow & Unsteady

     

    By Johnson Napier

     

    With news of employees being given the pink slip occupying news space almost frequently, the going has been getting tough for many in the Media & Entertainment sector. While experts and analysts had predicted a recovery a few quarters ago, the situation seems to be almost static or on the downfall in some cases.

     

    When MxMIndia had spoken to experts almost a year ago, the opinion seemed divided on the prospects of a recovery. Whether the situation has changed and whether jobs will be hard to come by at this juncture is anybody’s guess. We speak to the job experts to assess the situation…

     

    Abha Kapoor, Executive Director, K&J Search Consultants

    The turbulent economic environment that is marred by tight liquidity, slow economic growth, the devaluing rupee and rising inflation has impacted advertising revenues. Subscription revenues are far below their potential as the benefits of digitization are yet to kick in. With margins under pressure many media companies are in consolidation mode whereby they are rationalizing marketing, distribution, programming and people costs. The hiring sentiment is therefore subdued. In fact, hiring is happening mainly at junior and mid levels with almost no movement at senior levels. This ensures that costs are low and fresh young talent comes in. Contractual/consultant hiring is also on the upswing. Specialist professionals are being pulled in for specific projects and not on payroll basis thereby controlling the fixed costs, in an extremely dynamic industry scenario.

     

    Also, the M&E sector has been overvalued and over leveraged in the past and hence in the current scenario, funding to this sector is further constrained. Therefore new initiatives/expansion plans with the exception of digital/new media have slowed down or are on hold which means – fewer start-ups and fewer replacement requirements as professionals hold on to their jobs!”

     

    Ashish Pherwani, Partner, Media & Entertainment, Ernst & Young LLP

    The first quarter of FY13-14 has seen some good results from companies, whether television, print or radio, and there has certainly been both ad volume and (a slight) rate growth. The new reality is that one can expect a tough working environment till the next elections. There are several positives for the media industry today such as increased revenues from DAS, rising cover prices of newspapers, the (always) imminent Phase III of radio licensing, and rising box-office collections of films on the one side, but this is being countered by a weakening rupee which is pushing up prices, falling stock markets and investor confidence, slowdown in some industrial sectors like auto, etc. It’s a precarious balance, and the winners will be those who can optimise costs, deliver audiences, and demonstrate that delivery.

     

    Pankaj Raj, Director, Search Value Consultants Pvt Ltd

    The M&E sector is poised to double in size by 2017. With a surge in digitization and a future forward election year approaching, the sector is poised to see sustainable growth.

    It’s easier today for global media organisations to dig deep in the market. They have understood localisation of content and strategy is the biggest leverage in the market.

    To produce this for the consuming millions, it is necessary to tap into relevant talent which now upgrades itself as fast as technology.

    The job market in the M&E has been slow in the last few quarters but there is still a lot opportunity for people having three specific competencies

     

    1) Ability to work and deliver in chaos and difficult situations

    2) People who have a genuine consumer and customer connect

    3) Can reinvent themselves with changing times and situations and regulations. What got me here is not going to take me further.

     

    Another trend we are picking up is the opening up of relatively unheard of sectors in the media space - digital, digitised distribution, VFX, online video, films finally seeing a level of corporatisation, the opportunities are still aplenty for the right people. One needs people with new skills to run these domains and hence this opens up parallel industries of training, creativity and new age leadership modes.

     

    Lastly, the sector seems to be open to the “non-media” talent like never before. There are many examples of people who joined the sector from consumer facings business backgrounds and have made a success of themselves.

     

    Sarabjeet Sachar, Founder & CEO, Aspiration

    The media sector is in a bad shape at the moment with the advertising revenues plummeting by significant levels. With reducing value of rupee, rising inflation etc traditional mediums like newspaper, television, radio, out of home etc are either in a static state or have gone down. If one were to see the hiring trends taking place right now, it is taking place in the digital and mobile domains. It will probably take a long time for a recovery to happen; I presume it will take even longer after the elections are over. If an economy like US takes about five years, we may take double of that to return to normalcy.

     

    From the business perceptive, the only domains where there is action being witnessed is experiential marketing and digital and mobile. Also, hiring is taking place at the junior level while at the middle and senior level there is hardly anything being witnessed.

     

  • Presenting the concluding part of our feature asking some business leaders to review how the January to June 2012 period was for the industry as a whole and/or their specific sectors and organizations

    The Half-Year That Was-III

    By Team MxM

     

    Presenting the concluding part of our feature asking some business leaders to review how the January to June 2012 period was for the industry as a whole and/or their specific sectors and organizations.

     

    Read the earlier parts at: Part 1 Part 2

     


    Mohit Joshi

    Mohit Joshi, MD, MPG

    There has been a marginal growth (under 5 per cent) in adex in Jan-June 2012, as when compared to the same period in 2011. Some sectors that have been slightly depressed are auto and cellular phone service while sectors that have gone up are education/ institutes, jewellery and insurance.

     

     

     

    Jaideep Shergill, CEO, Hanmer MSL

    Jaideep Shergill

    I would say the PR space is growing but it has not been a year where there have been some big pitches that one would expect. That was what 2010-11 was all about. Although there has been some business, it has been more of an organic one. One of the factors that led to the sluggish growth is the economic scenario which has been going through a hard phase recently. But I would want to think of it as otherwise – when there is a general lack of trust in the market, I think that is where PR has a larger role to play. But that is not what usually happens. For our group too, it has been a good year but it could have been better.

    As the market conditions get more complicated, clients are looking at other streams to expand their business. And that’s where social media is playing a huge role. Our social media unit itself has been seeing some tremendous traction and we have hired more people in the unit. So the medium will continue to see some good growth. But the other thing about social media is that it is evolving continuously – what was happening a year ago and what is happening now is completely different. The medium has been evolving at a good pace.

     

    Pankaj Raj

    Pankaj Raj, Director, Search Value Consultants Pvt Ltd

    I would summarize hiring as still being slow and sluggish in this space. There are 2-3 observations that I would like to bring across. The first is that most organisations today are in ‘sensible hiring’ mode. This is really about replacement, immediate benefit kind of hiring. The second trend that I am seeing is that there is a huge sense on cost consciousness, whose effects are seen in the hiring space as well. The third trend that I am seeing is that increments haven’t been really good. So there is a level of concern amongst employees in the M&E sector. But having said that, some organisations are still hiring and not in standstill mode.

     

    As for the next six months, it’s a function of revenues – on how the September quarter turns out for the advertisers. Also, the December quarter is a peak season from an advertiser point of view; a lot of advertisers are active during this period. But to predict growth for the March quarter next year is a bit difficult. We will have to wait and watch how the growth pans out till then.

     

    Abha Kapoor

    Abha Kapoor, Executive Director, K&J Consultants

    The Media and Entertainment sector is not an island. This space is as affected as any other by the global and national environment. What’s going on in the rest of the world, and in our own country – the economic indices, inflation, governance or the lack of it, have a universal effect on all sectors, not just Media. So if the indices and sentiment are looking southward, then we are as affected by it as any other sector. You have to consider the macro perspective as also the ones specific to us to probably understand the lull in the hiring market.

     

    There is likely to be a spike from September-October onwards, during the festival period. That’s when you see brands spending more. Therefore, there is likely to be a more optimistic/feel good factor and an expansion (need-based) in hiring. But it is not likely to be at the rate and scale that we have seen in the past.

     

    In our case at K&J – we are used to working on three start-ups simultaneously like television, radio and digital – which used to be the case a couple of years ago, but no more! So the pace has definitely slowed down. Digital is the new kid on the block, so there is a lot of activity happening in that vertical.

     


    K Jayaraman

    K Jayaraman, MD and CEO of Hathway Cable and Datacom Limited

    The industry is been focused on digitization, as its on the anvil and the Indian broadcasting space is in the process of witnessing the dawn of a new digital era with its implementation proposed by the Government of India. With this, the government has paved the way for transition to a Digital Addressable Cable TV system (DAS).

     

    For the average Indian family, the TV is the primary source of news, entertainment and education. The liberalization of the Indian economy starting 1991 has led to what it termed as an explosion of channels catering to different genres. Today we have more than 550 channels broadcasting leaving out the count of local channels specific to regions.

     

    As per The Cable Television Networks (Regulation) Amendment Bill, 2011, the cable TV industry is required to migrate all subscribers from analog signals to digital. The overall objective of the industry has been to expose every television viewer to an experience which will invariably give consumers the opportunity to resolve some of the issues they have faced with analog cable systems.

     

    At Hathway our aim has always been to providing consumers with enhanced viewing experience.

     

    Sanjay Dua

    Sanjay Dua, CEO, Network18 News Media

    This year has been a mixed bag for the industry quite frankly. On the advertising front, the decline in economic sentiment has created a challenging environment, especially for some genres. So, while growth continues to exist, its pace has been muted and variable. However, given the positive move towards digitization, a possible revival in outlook and the impetus of festival spending, the second half holds a lot more promise for broadcasters. We are cautiously optimistic about the scenario going forward.

     


    Rahul Razdan

    Rahul Razdan, President – ibibo Games & Mobile

    The gaming industry in India witnessed a concerted shift towards mobile gaming on the iOS and Android platforms. Games are now ubiquitous across platforms.

     

    Games exploiting the touch and tilt features of smartphones were very well received. Our game – Can You Draw, which we’d made for our web platform two years back – became one of the top games on the Android platform within weeks of being launched there.

     

    While the first phase of web social games plateaued out, live multiplayer games maintained their growth and continue to be the top games on our platform.

     

    Dr. Subho Ray

    Dr Subho Ray, President – Internet & Mobile Association of India (IAMAI)

    I would say that the year began with a bang. Between January and April there were serious hopes that that this would be a bumper year for the industry. However, in the last two months, there have been some caution and apprehension. The very positive performance was the result of key factors like secular growth of traffic both in urban and rural areas, investments coming in on time and some friendly regulatory announcements like removal of service tax on digital advertisement. The more recent sentiment of caution is led by primarily European crisis. However, so far it is only a caution and alert stage.

     

     

    Jogi George

    Jogi George, CEO, Percept Sport & Entertainment

    To be frank, the first half wasn’t as it was expected to be. There was business, but it was more about collections. Also, for our company, some of the major projects have been moved to the second half. Hopefully, this trend won’t continue and things will improve once the rupee stabilizes. As for the overall industry, it’s not that people aren’t  ready to spend, but they have become more cautious and selective as some of the sectors are experiencing a gloomy outlook. Hence, there is a wait and watch attitude.

     

     

    Hemal Thakkar

    Hemal Thakkar, producer, Playtime Creation

    It’s been a mixed year so far, a major setback was Imagine shutting down and a big welcome was Life Ok. Lot of new format shows have been launched this year – the biggest being Satyamev Jayate. Inflation has put lot of pressure on the industry, and with rising cost of programmes, we have to put together a skilled team to manage our shows within budgets. In future, rising expenses are going to be major burden for the industry. Playtime Creations has had good start with Ruk Jana Nahi and as a company, we feel that this show has given us the opportunity to experiment with new content. There are couple of other projects in the pipeline which we are excited about. The best aspect of our industry is it keeps us on our toes and so we expand rediscover and reinvent and keep breathing.

     

  • Even though hiring may not have stopped entirely in some sections, there is gloom all over

    Jobs Not OK Please!

     

    By Johnson Napier

     

    If you’re among those contemplating switching jobs given growth constraints at your current place of work or just the sheer temptation to move on to a job more thrilling, you better think twice. Going by the reactions drawn from the Indian media and entertainment marketplace and from consultancy firms dealing with manpower issues, companies are in no mood to go on a recruitment drive, unless of course, there is a dire need for the same.

     

    With 2012 starting off on a sluggish note and with the crisis making a fresh comeback, the growth forecast for the media and entertainment sector is being questioned unabatedly by all and sundry: will media will touch the 12% ballpark growth figure that was estimated for year 2012. This in turn will dictate whether there are enough opportunities for brands and clients to go talent hunting or whether they’ll have to make-do with internal makeshift arrangements to handle extra responsibilities.

     

    But the prevailing sentiments definitely don’t appear inspiring on the jobs front, be it for clients looking to source great talent at the senior level or for those wanting to explore opportunities beyond their current realm. Explaining the current sentiment in the marketplace, Abha Kapoor, Executive Director, K&J Search Consultants that specialises in placement services for media executives reckons that after 2008-09, the M&E sector has become a lot more conservative in terms of both headcount and pricing. She observed, “The trend being observed currently is that mid-level people are being involved to do high-level jobs. There is also lack of funds coming in from P/E, venture capitalist firms into the sector. For example, our firm K&J is used to working for three start-ups simultaneously including mid- to CEO level. We’ve always had a television start-up, a radio start-up, an internet start-up but that’s because the money was coming into the sector. Right now that is not the case.”

     

    According to Ms Kapoor, this trend has led to a shift in paradigm. “First there was lot of chasing that was done for talent, and salaries too were high, but right now there is lot of talent that is available but the headcount is not that high,” she reasons. According to her, there are no new jobs being created and there are also not enough replacement requirements.

     

    Agreeing with Ms Kapoor’s observations is Pankaj Raj, Managing Partner, Search Value, a firm specialising in placement services for senior media execs. “Earlier, people were not willing to accommodate new talent due to financial constraints but right now they are saying, do not go overboard with the hiring; do so only if extremely critical or make-do with internal replacements only,” he said. “So the current trends suggest internal movements as the in-thing and also, salaries are not being hiked to the levels that it was done earlier.”

     

    Reasoning the recurrence of the slump, Sarabjit Sachar, Founder and CEO of Aspirations said, “My reading is that it is a consolidation phase; it’s not going to go away easily. If you assess the media in the recent past, there were several takeovers that took effect like that of Nai Dunia being taken over by Jagran Group etc. This led to many senior people looking out for options at other places. Many organisations felt that they could either absorb them or give them roles as per the necessity. But what happens in a takeover is that the roles are not that enriching. Secondly, there is a lot of realignment that is taking place where the whole organisation’s business is being realigned into certain other businesses or products. Here the trend is that they want to retain the same resource and not hire anybody from outside. Thirdly, it is also about consolidation where most units are facing shutdown due to larger plans by parent groups. So while the falling value of rupee, hike in petrol prices etc have played some role more than that it is solely about consolidation.”

     

    According to Mr Sachar, it is due to consolidation that there is a shortage of senior positions in organisations. “Due to this, senior executives will find themselves in two situations, one is where the role is not enriching and therefore they would want to leave, or they would not be left with a choice and therefore would leave the organisation.” According to the response that his firm has been eliciting, there has been a big drop in senior positions within organisations. “There are a lot of candidates at the top level who are not able to shift jobs due to lack of decent availability. I think the figure is somewhat in the range of 30-40 per cent. Even amongst the media companies, what they would’ve hired at the top level is down by 25-30 per cent this year.”

     

    Industry in caution mode

    On the strains being felt across domains, Mr Raj opined: “Sector-wise if analysed, radio isn’t hiring anyone right now, print is on a business-as-usual kind of hiring while television is almost zero. That said, digital is the best performing of the lot and is seeing hiring taking place in full swing. Overall the mood is of caution and being sensible.”

     

    Providing an insight on the trend being felt in the broadcast space, Yannick Colaco, COO, Nimbus said, “From what I understand, the MIB has recently issued licences for new channels and more channels means more jobs. Also, with the digitization drive in full swing that should act as a boost for the industry as it will increase monetization abilities of all broadcasters. All these factors will lead the industry to its next phase of explosive growth. Today, everything is a function of demand. If you have more number of channels coming up it will only have a more positive impact on the overall growth of the industry.”

     

    Throwing light on the trend at his organisation, Colaco said, “There are specific functions in the company for which we are hiring people. For example, World Series Hockey that was taken up by us was a new project and we went ahead and hired a whole bunch of people for the job. So as business grows, we will obviously need more talent. The thing is that when you have explosive double digit growth one year and when you move to single-digit growth in the next, it is considered to be a bad thing. So even if the growth is not what was expected from the medium, it is still a good single digit growth and that is what should be considered by the industry.”

     

    The status at the Discovery Network is also not gloomy. Said Discovery Network, Rahul Johri, Senior Vice President and General Manager (South Asia): “Discovery continues to expand its business in India. We have a robust portfolio of eight distinct brands satisfying curiosity of millions in India. We recently announced our foray in the kids genre with the launch of Discovery Kids that offers entertainment embedded with learning. Discovery is committed to the Indian market and will continue to invest here.”

     

    Jaisurya Das, COO, Sakal Media Group expressed concern with the current situation as he said that the print sector was indeed experiencing rough weather. This had to do with the rise in oil prices, fall in value of the rupee and global uncertainty. But that didn’t have to do anything with his organisation which has been recruiting people as and when the need arises. But things are not that rosy for the sector, going by what Alok Sanwal, Project Head & Editor, iNext had to say. He said: “From what I have heard it is not an extremely upbeat mood where recruitment is concerned. As far as new recruitment drives are concerned, they would be faced with a challenge but then again I haven’t come across organisations that’re on retrenchment mode or anything like that. So the jobs scenario too is on a cautious and alert note, so to speak.”

     

    The tide is not as bad for media agencies, it seems. Lara Balsara, Managing Director, Madison Media said that they were recruiting people for replacements and new positions because they had won some new businesses. Similarly, Sujay Ghosh, Senior Vice President, DDBMudra South said, “We are still recruiting as per our plan, because we don’t see any major dip in our revenues. Also, our involvements with clients have gone up significantly, so we can’t afford not to hire. But I have heard that in some industries, hiring freeze has started.”

     

    A similar sentiment was felt by radio players like Red FM who prefer to see an upside to the whole issue. B Surender, Senior Vice President and National Sales Head, Red FM seemed confident as he said: “The job scenario is still very good within the radio industry and it is not facing any extreme situation. In fact, radio tends to retain quite a lot of talent and it is handling the current situation quite well compared to other mediums and thus is better prepared to handle the slowdown than any other medium.” Echoing his thoughts, Prashant Panday, CEO, Radio Mirchi said: “At Mirchi, we continue to attract the best in the industry. We recruit our senior management cadre from FMCG, telecom, durables, auto and allied industries. We have no problems in hiring excellent quality talent…”

     

    So while caution is the name of the game, recruitment will be an exercise that the industry will engage only if essential. Those seeking an exponential growth in salaries and designations in the shortest possible timeframe may have to hold on to their wishes, unless, of course they bring exceptional value to a company. For the others, it is about waiting for the right moment to take the leap.

     

    With inputs by Robin Thomas