'Ad sector will see a double digit growth this year '

Insearchindia.com's interview with Havas Media India & South Asia CEO Anita Nayyar

'Ad sector will see a double digit growth this year '

Posted on 24 July 2010


As the advertising industry prepares to come out of the slowdown
clutter, Havas Media has found proper representation in India's
two high-growth sectors: telecom and automobiles.

While Maxx Mobiles came into the fold in 2009, the big catch this
year has been Hyundai.

Havas has almost 50 per cent of its revenues coming from the top
five clients - Reckitt Benckiser, Jockey, Bank of Baroda,
Max Mobiles and MTS. With Hyundai falling into the net, the top
six are in a position to power the media agency's growth story in
India.

Havas will stay Delhi and Mumbai focussed while posting slow growth
from its three southern offices - Bangalore, Chennai and Hyderabad.

The big push will come from its integrated funtions - sports, digital
and out-of-home.

In an interview with Insearchindia.com's Anindita, Havas Media India
& South Asia CEO Anita Nayyar speaks about her company's growth plans
at large.

Excerpts:


How has the first half of the year fared for MPG India?
We are on track as far as revenues and billings are concerned.
On a percentage basis, we have met out targets quite in line with
last year and the growth has come from both existing and new businesses.
While our existing clients have fared better for us this year, the
new businesses have also helped in pumping up the growth.

But are you implying that 2010 has been similar to 2009 in terms of
growth?
Yes. We won MTS and Maxx Mobiles last year and Hyundai this year,
all large and prestigious clients. And both telecom/handsets and
automobiles are considered as categories doing well with minimal
recessionary impact. We also won Dixcy, News X and M3M this year.

As far as revenues are concerned, which clients and categories are
the largest contributors?
We have a client list that is upwards of 50 and across categories
which include FMCG, telecom, automobiles, banking, mobile hand sets,
beauty and wellness, media and real estate. About 40-50 per cent of
our revenues come from our top five clients - Reckitt Benckiser,
Jockey, Bank of Baroda, Maxx Mobiles and MTS.

What are your expectations for 2010?
We foresee a decent growth in 2010, given that 2009 was a recessionary
year. Percentage growth in our integrated functions - sports, digital,
and out-of-home - will be better as margins in offline business
is pretty low.

But has not out-of-home taken a hit this year?
I don't think so. In fact, out-of-home has been doing very well for
our clients and though it has not increased dramatically, it has surely
not taken a dip.

'About 40-50 per cent of our revenues come from our top five clients
- Reckitt Benckiser, Jockey, Bank of Baroda, Maxx Mobiles and MTS'


Which are the geographical areas that show potential in terms of
advertising?
As far as we are concerned, we have five offices across India -
Delhi, Mumbai, Bangalore, Hyderabad and Chennai and we expect our
growth to come in primarily from Delhi and Mumbai. Growth from
the southern market is slow for us.

Overall, from the consumer's point of view, the potential surely
lies in the semi-urban and rural areas.

How are the other divisions faring - Havas Sports & Ent,
Media Contacts and MPG active?
All three are doing well and on an upswing. Havas Sports took up
interesting projects during IPL like the strategic sponsorship deal
and the Dhoni endorsement with Max. We are in the process of finalising
some more deals. Digital is seeing an interesting growth and Media
Contacts is en cashing on the situation. MPG Active has been in the news for executing interesting campaigns including the one on INQ Mobiles where they executed the country's tallest billboard.

How do you predict the 2010 advertising scenario to be like?
We should hit double digit growth in 2010. It should be somewhere in
the region of 10-12 per cent, though the pace is a bit slow.

According to Tam, the first half of the year has seen a 36 per cent
rise in TV ad volumes. Revenue, however, is not growing at the same
speed. Why?
There is too much of a fragmentation today and this is making it
difficult to attract the consumer. There are multiple touch points
today to capture consumer attention and you never know when and
where the consumer will spot the advertisement. And though the
ad volumes are increasing, we are not seeing much increase in ad rates.

How much of a change has recession brought into the functioning
methods of an advertising strategy?
When recession's not around, we tend to work more liberally.
However, recession always teaches businesses
to get more from less and our business is no exception. This time
around, it taught us to keep a tight watch on our purse string.
It told us that we can do with lesser inputs, work, people and
resources. Also, while there was a bit of retrenchment as far as
our industry is concerned, it was more about not giving increments
during the period.

Which advertising platform is expected to show the maximum growth?
Digital for sure. This is because the medium is progressing towards
accountability and efficiency. The platform is seeing about 40 per cent
growth year-on-year as advertisers are increasingly getting into the
digital and media space.

India has 503 registered TV channels till March-end

India has 503 registered TV channels till March-end


Insearchindia.com Team

(24 July 2010 8:20 pm)


NEW DELHI: Even as the Telecom Regulatory Authority of India
has recommended that there should be no cap on the number of
television channels in the country, its quarterly report for January
to March 2010 shows that 18 new television channels were registered
taking the total to 503.

These include 147 pay channels being broadcast or distributed
by 24 broadcasters, according to the Trai Indian Telecom Services
Performance Indicator Report.

During the quarter, three new pay channels were launched and two
channels were converted from FTA to pay by the broadcasters.

S.No Name of the Broadcaster Name of the channel Status
(New /Converted)
Zee Turner Limited Zee Salaam New pay channel
MSM Discovery Discovery Science New pay channel
MSM Discovery Discovery Turbo New pay channel
Asianet Communications Asianet Converted from FTA to Pay channel
Asianet Communications Asianet Plus Converted from FTA to Pay channel

During the quarter, the distribution of following 11 channels changed / shifted :-
S.No Name of the channel Distributed earlier Distributed now
Zee Sports Zee Turner Taj Television India
Ten Sports Zee Turner Taj Television
The Disney Channel Star Den Sun Distribution Services
Disney XD Star Den Sun Distribution Services
Hungama TV Star Den Sun Distribution Services
FX Fox Channels India Star Den
FoX Crime Fox Channels India Star Den
Baby TV Fox Channels India Star Den
Nat Geo Fox Channels India Star Den
Nat Geo Adventure Fox Channels India Star Den
Nat Geo Music Fox Channels India Star Den

During the quarter, Channel Plus (Now Sun Distribution Services) has
reported an increase of 7 per cent in the rates of all their channels
for Non-Cas areas in pursuance of the tariff amendment order - the Telecommunication (Broadcasting and Cable) Services (Second) Tariff
(Ninth Amendment) Order, 2008 for Non-Cas areas. The aim of this
tariff amendment order was to provide inflation linked adjustments
of 7 per cent in the rates of channels for cable TV services.

There are six private Direct-to-Home licensees having a subscriber
base of 21.3 million viewer homes. This is apart from Doordarshan’s
DD Direct Plus which is the only DTH player for free-to-air channels.

The total number of set-top boxes installed in Chennai and the Cas
notified areas of Delhi, Mumbai, Kolkata and Chennai increased from
7,45,953 in December 2009 to 7,62,238 in March 2010.

The maximum number of pay TV channels being carried by any cable
operator is 122 (Up by only two) and the maximum number of FTA
channels is 161 channels (up by six).

The maximum number of TV channels being carried by any of the reported
MSOs is 259, and 100 in the conventional analogue form.

Interestingly, the only one new licence was issued to a Teleport
Service Provider, taking the total to 61

MSM Discovery moves court against Viacom18

Insearchindia.com's Digital Edge

MSM Discovery moves court against Viacom18

Insearchindia.com Team

(17 July 2010 11:40 pm)


MUMBAI: For MSM Discovery, it is a sweet deal gone sour for no
fault of theirs. After getting a termination notice from Viacom18,
the distribution company operating under the OneAlliance brand
has moved the Bombay High Court.

MSM Discovery's grouse is that Viacom18 has decided to pull out its
four channels - Colors, MTV, Nick and Vh1 - before the expiry of
a three-year contract effective 1 April 2009.

"We have moved the Bombay High Court. We believe we have a strong
case and will get relief from the court," MSM Discovery president
Rajesh Kaul tells Insearchindia.com.


MSM had entered into a pact to distribute Hindi general entertainment
channel Colors while renewing its contract to distribute the other
three channels. The company had agreed to pay a minimum guarantee
(MG) of Rs 3 billion over the three-year period, according to sources
familiar with the transaction.

Colors was to turn pay from 1 April and decided to align with
TheOneAlliance bouquet. Besides getting a lucrative MG, it also
weighed in the fact that the bouquet would have Max as a driver
channel with its compelling IPL content during the 45-day period
starting 18 April. Colors ran less risk of being blacked out from
cable TV networks as it initiated the process of collecting pay-TV
revenues.

For TheOneAlliance, the inclusion of Colors, the second most-watched
Hindi GEC then, meant more muscle to the bouquet even after the end
of the Indian Premier League (IPL) playing window. It was, in other
words, a deal that best suited each other at that time.

“We have a watertight contract valid till March 2012. We have been
fulfilling all the contractual obligations and there is no way the
Viacom18 channels can walk out of our bouquet. There is no material
breach on our side,” Kaul says.

When contacted, Viacom18 spokesperson refused to comment on the issue.

Viacom18 has decided to shift its channels to Sun18, a newly formed
joint venture between Sun Network and Network18 that hopes to start
with the distribution of 33 channels. Network18 Group has a 50 per cent
stake in Viacom18 (through IBN18), the remaining half being held by
partner Viacom.

Media observers feel Viacom18 will be able to get more than what
it would have got from TheOneAlliance, now that Colors has established
its success. "Colors is an established channel now. The revenue
potential of Viacom18 from subscription is bright," says an analyst
who is tracking the company.

On the other side of the boundary, Star India has plenty of
reasons to be upset as the Network18 group of channels
(including CNBC TV18 and CNN IBN) have demanded exit from Star Den.

Star had formed a 50:50 joint venture with Den Networks
in January 2008 and the Network18 channels had signed a long-term
distribution contract with Star Den.

"This is the first time in the distribution business that a
broadcaster has terminated its contract with the distribution
service provider before the full term is over. This will create a
lot of ill-feeling in the market," says a senior executive of a leading distribution company who did not want his name to be revealed.

Network18 officials did not want to comment on the issue, including
the possibility of material breaches committed by the distribution
partner.

The formation of Sun18 marks the entry of Network18 Group into the
Indian television distribution space. In an official statement
announcing the joint venture, Sun18 had said it would be the
"first truly pan-India distribution company" and aim at
"becoming one of the dominant players in the approximately
Rs 160 billion pay-TV subscription market over the next 2 years."

MSM Discovery is not amused. "Wait and watch. The game is not over yet.
We will fight till the end," says Kaul.

Dish TV ropes in Venkateish as CEO

Dish TV ropes in Venkateish as CEO

Insearchindia.com Team

(19 July 2010 2:10 pm)


NEW DELHI: Dish TV India has roped in ESPN Star Sports India
head RC Venkateish as its chief executive officer.

Venkateish's contract with the sports broadcasting network
recently got over, offering him an option to join a rival media
company. He will be handling the direct-to-home (DTH) business of
the Essel Group which also has two sports channels, Ten Sports
and Zee Sports.


Venkateish was serving as the ESPN Star Sports managing director
for India and South Asia and was responsible for business operations
in these regions.



Says Dish TV India MD Jawahar Goel, “Venkateish has had an excellent
track record while heading leading brands, his experience gives him
a well seasoned perspective which perfectly complements Dish TV’s
needs as a rapidly growing company with the highest market share.
I am confident in his abilities to enable Dish TV to take the next
big leap.”

Bringing with him a wealth of over 27 years’ experience, of which
12 years have been in senior international positions, Venkateish has
worked with global brands like Smithkline Beecham, Nestle India,
Gillette and Kellogg India.

Venkateish holds a Bachelor of Electrical Engineering degree
from IIT – Madras and a Master’s in Business Administration
from the Indian Institute of Management, Calcutta.