Media Management

Sudip DuttaPGPM 2010 – 2012

Globsyn Business School, Kolkata

What is Media?

In general, "media" refers to various means of communication. For example, television, radio, newspaper and the internet are different types of media. The term can also be used as a collective noun for the press or news reporting agencies.

What Media does

CommunicatesInforms

EducatesCreates Awareness

InfluencesEmpowersEntertains

Makes Money

Importance of Media

THE IMPORTANCE OF MEDIA IN TODAYS WORLD IS EVIDENT FROM THE FACT THAT IT HAS THE POWER TO INFLUENCE THE LIVES OF ORDINARY PEOPLE IN EVERY WAY…

Channels Of Media

• Print Media• Television Broadcast Media• Films as a Media Vehicle• Radio Broadcast Media• Music as a Media Vehicle• Home Video as a Media Vehicle• Internet• Mobile• Outdoors• Events as a Media Vehicle• ?

Print Media The evolution

• For centuries, civilisations have used print media to spread news and information to the masses.

• The Roman Acta Diuma, appearing around 59 B.C, is the earliest recorded “newspaper”. Written on large white boards and displayed in popular places like the Baths, the Acta kept citizens informed about government scandals, military campaigns, trials, executions , important social and political happenings and upcoming events.

• In 8th century China, the first newspapers appeared as hand-written newsheets in Beijing

• The printing press, invented by Johann Gutenberg in 1447, ushered in the era of the modern newspaper.

• During this era, newsletters supplied a growing merchant class with news relevant to trade and commerce.

• In 1556 the Venetian government published Notizie scritte, for which readers paid a small coin, or “gazetta”.

• In the first half of the 17th century, newspapers began to appear as regular and frequent publications. They rarely covered domestic issues; instead English papers reported on French military blunders while French papers covered the latest British royal scandal. The invention of the telegraph in 1844 transformed print media. Now information could be transferred within a matter of minutes, allowing for more timely, relevant reporting.

• The history of media in India is coloured by the colonial experience. William Bolts, an ex-employee of the British East India Company attempted to start the first newspaper in India in 1776. Bolts had to beat a retreat under the disapproving gaze of the Court of Directors of the Company.

• The Hickey's Bengal Gazette or the Calcutta General Advertiser was started by James Augustus Hickey in 1780. The Gazette, a two-sheet newspaper, specialised in writing on the private lives of the Sahibs of the Company. He dared even to mount scurrilous attacks on the Governor-General, Warren Hastings', wife, which soon landed "the late printer to the Honourable Company" in trouble.

• Broadcast radio exploded onto the media scene in the 1920’s. • Newspapers were forced to re-evaluate their role as society’s

primary information provider. Like the new media technologies of today, the development of a low cost, alternative media source produced rumblings that radio would topple the newspaper industry. To respond to this new competition, editors revamped the paper’s format and content in order to broaden their appeal, and stories were expanded to provide more in depth coverage.

• No sooner had newspapers adapted to radio than they were forced to re-evaluate themselves in light of a new and more powerful medium: television. Some newspapers, like USA Today, responded to the technological advancements by using color and by utilizing the “short, quick and to the point” stories that are usually featured on television.

• The technological revolution of today is creating new challenges and opportunities for traditional media. Never before has so much information been so accessible to so many. By the end of the 1990s, some 700 had web sites; today there are thousands.

• The amount and immediacy of information on the Internet is unparalleled, but it has not signalled the end of the newspaper’s relevance. Newspapers in print remain a popular and powerful medium for the reporting and analysis of events that shape our lives.

Colonial Media• Calcutta (Kolkata)• B.Messink and Peter Reed were pliant publishers of the India Gazette, unlike their

infamous predecessor. The colonial establishment started the Calcutta Gazette. It was followed by another private initiative the Bengal Journal. The Oriental Magazine of Calcutta Amusement, a monthly magazine made it four weekly newspapers and one monthly magazine published from Calcutta.

• Madras (Chennai)• The Madras Courier was started in 1785 by Richard Johnson, its founder, was a

government printer. Madras got its second newspaper when, in 1791.• In 1878, The Hindu was founded, and played a vital role in promoting the cause of

Indian independence from the colonial yoke. • Bombay (Mumbai)• The Bombay Herald came into existence in 1789 and a year later a paper called the

Courier started carrying advertisements in Gujarati.• The first media merger of sorts: The Bombay Gazette, which was started in 1791,

merged with the Bombay Herald the following year. Like the Madras Courier, this new entity was recognised as the publication to carry "official notifications and advertisements".

Post colonial journalismThe Age of Consolidation that follows stretches from 1951, with the extension of the Indian Telegraph Act to the whole of India and ends with the promulgation of the "Indecent Representation of Women (Prohibition) Act" in 1985. The current age is the Age which began in 1989 with the introduction of the Prasar Bharati (Broadcasting Corporation of India) Bill.

• Two News Agencies• Press Trust of India (PTI) and United News of India (UNI) are

the two primary Indian news agencies. The former was formed after it took over the operations of the Associated Press of India and the Indian operations of Reuters soon after independence on August 27, 1947. PTI is a non-profit cooperative of the Indian newspapers.

• UNI began its operations on March 21, 1961, though it was registered as a company in 1959 itself.

The Print Media Today

• Newspapers – BroadsheetsTabloidsCompacts

• Magazines

Types of Newspapers and its reach• Frequency of publication

– Daily, weekly, Sunday Supplements• Size

– Tabloid,Broadsheet, Compacts– SAU – Standard Advertising Unit (column per inch

to centimeter square)• Circulation

– ABC• Reach / Readership

– NRS / IRS

Print as a Media

• Making Print Media Interactive• Active media but not interactive.• The Battle between the EDITORIAL and the

SALES• The Power of Print and the economies of the

media

Types of Newspaper Advertising and revenue earning areas

• Display – Size and Position• Classified / Tendors• Ear panels• Advertorials / Paid News• Supplements• Inserts

– FSI, Free Standard Inserts• Special Publications• Events• SMS and Websites• Circulation

Advantages of Newspapers

• Penetration• Frequency• Flexibility• Range of coverage• Comparison shopping• Targeting sections• Reader data• Shelf Life

Limitations of Newspapers

• Reproduction of photos• Color• Life span• Wasted coverage• Clutter

Buying Terms

• Space Setting Column-inches/centimeter square

• Flat rate vs. Open rate• ROP (Run of Print)• Preferred position, Solus• Combination rates

Audit Bureau of Circulation• Audit Bureau of Circulations (ABC) is one of the several organisations of the

same name operating in different parts of the world.

The ABC founded in 1948 is a not for profit, voluntary organisation consisting of Publishers, Advertisers and Advertising Agencies.

. The main function of ABC is to evolve, lay down a standard and uniform procedure by which a member publisher shall compute its net paid sales. The circulation figure so arrived at is checked and certified by a firm of Chartered Accountants which are approved by the Bureau. The Bureau issues ABC certificates every six months to those publishers whose circulation figures confirm to the rules and regulations as set out by the Bureau.

An Advertiser would like to know the facts and figures before investing his money in advertising. An Advertiser ought to know how many people buy a publication and in which area.

Readership• National Readership Survey Highlights from NRS 2006• The Study Council is constituted by• Advertising Agencies Association of India

Audit Bureau of CirculationsIndian Newspaper Society

• The National Readership Study 2006 in India is the largest survey of its kind in the world, with a sample size of 2,84,373 house-to-house interviews to measure the media exposure and consumer product penetration in both urban and rural India and the estimated readership of publications. The study covers 535 publications of which 230 are dailies and 305 are magazines

• The reach of the press medium (dailies and magazines combined) has increased from 216 million to 222 million over the last one year.

• Press reach has stabilized in urban India – at 45%. • Press reach in rural India has also stayed the same at 19% -

The number of readers in rural India (110 million) is now roughly equal to that in urban India (112 million).

• Dailies have grown rising as a proportion of all individuals aged 12 years and above –the universe – from 24% to 25%. Magazines have declined from 9% to 8%.

• The time spent reading has remained the same – at 39 minutes daily on an average per day. But there has been increase in urban India (from 41 to 44 minutes daily) and decrease in rural India (from 36 to 35 minutes daily).

• Literacy has risen from 69.9% to 71.1% over the last year. The rate of growth has been marginally lower urban areas (84.4% to 85.3%) than in rural areas (63.6% to 64.8%). Hopefully this will boost the market for the press medium.

Indian Readership Survey• Indian Readership Survey or IRS is one

of the largest readership survey conducted in India. Conducted by Hansa Research for Media Research User's Council ( MRUC), IRS covers readership for newspapers, internet usage, television veiwership .Established in 1995 IRS besides giving the readership habits, IRS also provides valuable insights into the consumption habits of the Indian consumer. The information coverage of IRS is as followsMedia data study includes the following :Press Readership: 350 + PublicationsTV: 150+ channels CinemaInternetRadio Listener ship: 15+ Radio Stations

Product data for the following is captured70+ FMCG products usage and consumption habits30+ Durable products ownership detailsFinancial ServicesUrban & Rural Lifestyle IndicatorsTelecom Data ( Source: Hansaresearch.com)

IRS uses sample from 24 states 91 cities covering a 250,000 respondents. IRS is done twice a year.

Readership Surveys• The Top 10 Hindi and English dailies have retained their ranks in the latest

survey. INDIAN READERSHIP SURVEY 2009

Figures in millions IRS 2008 (R 2) IRS 2009 (R 1)The Times Of India 13.3 13.3Hindustan Times 6.3 6.3The Hindu 5.2 5.4The Telegraph 2.9 2.8Deccan Chronicle 2.8 2.8The Economic Times 2 1.9Midday 1.6 1.6The New Indian Express 1.8 1.6Mumbai Mirror 1.6 1.6DNA 1.3 1.5

Readership Surveys• The Top 10 Hindi and English dailies have retained their ranks in the latest

survey. INDIAN READERSHIP SURVEY 2009

Figures in millions IRS 2008 (R 2) IRS 2009 (R 1)Dainik Jagran 55.7 54.6

Dainik Bhaskar 33.8 33.6

Amar Ujala 29.3 28.7

Hindustan 26.6 26.8

Rajasthan Patrika 13.9 14

Punjab Kesari 10.9 10.6

Aj 6.4 5.9

Navbharat Times 5.1 5.4

Prabhat Khabar 4.9 4.7

Nava Bharat* 4.6 4.5

Choosing a Publication

• Define your target audience• Choose publication that reaches your target

audience• Select from data the top few publications that

reaches your target • Calculate the cost of space in these publications

for the size of the communication• Calculate the cost per contact to understand

the actual benefit verses cost spent

Sum UP - The Future of Print Media

The future of print as a media vehicle• Will they survive the recession?• How do you start your day? Read the papers and

habbits die hard. But what will you do, if the newspaper you are used to closes? With so many local and national newspapers closing in the last couple of years, the question is certainly not pointless.

• One of the reasons for the death of so many print media is the recession. When the economy is in a desperate state, advertisers shy away from massive ad campaigns, which means less money for print advertising as well.

• Since for many newspapers advertising is the main source of income, it is obvious that when the flow of ad cash stops, this threatens the very existence of print media. A portion of newspapers’ income comes from circulation and from subscription in particular but now these sources are going dry, too.

• Will Online Publishing Kill Print Media?• In addition to the recession, another common reason for the

inglorious fate of print media is online publishing. • Yesterday’s news is old news. Online media has the

advantages of radio/TV (you learn the news soon after it happened) and print media (i.e. you see it on a piece of paper). Additionally, online publishing allows dialog with the audience (via comments and discussion forums), which is not the case with print media.

• When you add price to the above mentioned advantages – i.e. most online newspapers/magazines are (still) free – it becomes clear why online publishing kicked printed media in the corner. It is these advantages of online publishing that made print media so last century..

• It is sad but life is like that. If print media (or what is left out of it) don’t adapt themselves to the new realities, then the question about the future of print media is useless. Instead, we’ll be speaking about print media in the past tense only because they would have become history

Revenue• Understanding consumer media behaviors and

translating the insights into action• Thinking beyond the traditional- As with so many media companies striving to

balance the loss of traditional ad revenue and the growth of new media ad revenue corporate fortune will hinge on their ability to redefine the value, content and services across all media outlets. Until then there is no safe media heaven.

Broadcast Media - TELEVISION

• Commercially available since the late 1930s, the television set has become a common communications receiver in homes, businesses and institutions, particularly as a source of entertainment and news. Since the 1970s the availability of video cassettes, laserdiscs, DVDs and now Blu-ray Discs, have resulted in the television set frequently being used for viewing recorded as well as broadcast material

Indian Television• Television first came to India in the form of Doordarshan (DD)

on Sept 15, 1959. Doordarshan is the National Television Network of India and also one of the largest broadcasting organizations in the world. Indian small screen programming started off in the early 1980s. At that time there was only one national channel Doordarshan, which was government owned. The Ramayana and Mahabharat were the first major television series produced. This serial notched up the world record in viewership numbers for a single program. By the late 1980s more and more people started to own television sets. Though there was a single channel, television programming had reached saturation. Hence the government opened up another channel which had part national programming and part regional. This channel was known as DD 2 later DD Metro. Both channels were broadcast terrestrially.

• A series of economic and social reforms in 1991 allowed private and foreign broadcasters to engage in limited operations in India. Foreign channels like CNN, Star TV and domestic channels such as Zee TV and Sun TV started satellite broadcasts. Starting with 41 sets in 1962 and one channel (Audience Research unit, 1991) at present TV in India covers more than 70 million homes giving a viewing population more than 400 million individuals through more than 100 channels. A large relatively untapped market, easy accessibility of relevant technology and a variety of programmes are the main reasons for rapid expansion of Television in India.

The TV Revolution• Television has come to the forefront only in the past 21 years

and more so in the past 13. There were initially two ignition points: the first in the eighties when colour TV was introduced by state-owned broadcaster Doordarshan (DD) timed with the 1982 Asian Games.

• The second spark came in the early nineties with the broadcast of satellite TV by foreign programmers like CNN followed by Star TV and a little later by domestic channels such as Zee TV and Sun TV into Indian homes.

• Prior to this entertainment programmes were few and far between. And when the solitary few soaps like Hum Log (1984), and mythological dramas: Ramayan (1987-88) and Mahabharat (1988-89) were televised, millions of viewers stayed glued to their sets

• When, urban Indians learnt that it was possible to watch the Gulf War on television, they bought dishes for their homes. Others turned entrepreneurs and started offering the signal to their neighbours through cable. From the large metros satellite TV delivered via cable moved into smaller towns, spurring the purchase of TV sets and even the upgradation from black & white to colour TVs. DD responded to this satellite TV invasion by launching an entertainment and commercially driven channel and introduced entertainment programming on its terrestrial network. This again fuelled the purchase of sets in the hinterlands where cable TV was not available. The initial success of the channels had a snowball effect: more foreign programmers and Indian entrepreneurs flagged off their own versions. From two channels prior to 1991, Indian viewers were exposed to more than 50 channels by 1996.

• The Television industry is witnessing a boon with new channels being launched every year. TV is also penetrating into the rural areas and is a promising segment. Homes with TVs are expected to grow from 112 million to 200 million in a few years. Current size: Rs 14,800 crore

• Projected size by 2010: Rs 42,700 crore • CAGR: (Compound annual growth rate) 24% • India boasts of being the third largest television market in the

world today. And cable penetration (pay TV market) is expected to grow from the present 70 million to all TV homes. More than 350 channels (paid and free) I available. The fact that 40 per cent households of India are still without television connectivity highlights the scope of growth in the segment. The majority of the revenue generated in the television industry is through advertisements, followed by subscriptions.

• Over the next five years, the subscription revenues are poised to be the growth driver of the Indian television industry. The number of pay TV homes and the increased subscription rates will increase the subscription revenues.

• Direct to Home• DTH is defined as the reception of satellite programmes with a

personal dish in an individual home.• DTH does not compete with CAS. Cable TV and DTH are two

methods of delivery of television content. CAS is integral to both the systems in delivering pay channels.

• Cable TV is through cable networks and DTH is wireless, reaching direct to the consumer through a small dish and a set-top box.

• India currently has 6 major DTH service providers and a total of over 5 million subscriber households.

• Internet Protocol Television (IPTV)• IPTV launched only in some cities around 2006-2007 by

Mtnl/Bsnl later Expands to many urban areas and still expanding. Private Broadband provider Bharti Airtel has also started its IPTV service in Delhi, NCR region.

• Conditional Access System• CAS or conditional access system, is a digital mode of

transmitting TV channels through a set-top box (STB). The transmission signals are encrypted

• The idea of CAS was mooted in 2001, due to hikes by channels and cable operators. Poor reception of certain channels; arbitrary pricing and increase in prices; bundling of channels; poor service delivery by Cable Television Operators (CTOs); monopolies in each area; lack of regulatory framework and redress avenues were some of the issues that were to be addressed by implementation of CAS

• It was decided by the government that CAS would be first introduced in the four metros. It has been in place in Chennai since September 2003, where until very recently it had managed to attract very few subscribers. It has been rolled out recently in the other three metros of Delhi, Mumbai and Kolkata.

• Benefits of CAS• All the involved players and the viewers (consumers) can

benefit greatly CAS is rolled out across the country. However, vested interests and the price of STB's have been some of the reasons for delay in implementation of CAS all over India.

• Consumers: Consumers get the option to choose the channels they want to pay for and view

• Cable Operators: Cable operators get the opportunity to pay a part of the subscription fees to the broadcasters only for the actual number of end users who opt for the channel, rather than all households having cable access.

• Broadcasters: Broadcasters have a long-standing complaint that the Cable Operators under-declare the actual number. With a system like this in place, it is possible to address the exact number of subscribers with a cable operator.

• Advertisers: CAS gives a far more accurate indicator of programme popularity with only the actual subscribers of each channel being accounted for.

• Government: Since the issue of addressability ensures a fair degree of transparency in accounting across the entire value chain, it minimizes the loss of revenues to the government through mis-reporting or non-disclosure of actual revenue figures. The system also facilitates consumer friendly systems like pay per view, interactive programming, etc.

Measuring TV Viewership• DART (Dairy System)• During the days of the single channel Doordarshan monopoly,

DART (Doordarshan Audience Research Team) was the only metric available. This used the notebook method of record keeping across 33 cities across India. DART continues to provide this information independent of the Private agencies. DART till this date is the only rating system that still measures audience metrics in Rural India.

• TAM & INTAM (Dairy System and Peoples meter)• In 1994, claiming a heterogeneous and fragmenting television

market ORG-MARG introduced INTAM (Indian National Television Audience Measurement).

• In 1997, a joint industry body appointed TAM (backed by AC Nielsen) as the official record keeper of audience metrics . Due to the differences in methodology and samples of TAM and INTAM, both provided differing results fo r the same programs.

• In 2001, a confidential list of households in Mumbai that were participating in the monitoring survey was released, calling into question the reliability of the data. This subsequently led to the merger of the two measurement systems into TAM.

In 2004, a rival ratings service, funded by a slew of American NRI investors, called Audience Measurement Analytics Limited (aMap) was launched. Although initially, it faced a cautious uptake from clients, the TAM monopoly was broken.aMap USP is that ratings are published overnight.

Connectivity DataaMap is the only system in India that gathers and disseminates connectivity data on an overnight basis, for 3 different times of the day to ensure accuracy. To aMap’s subscribers, data is provided on an overnight basis by market and by band. The bands in which data is disseminated are Prime band, Colour Band, S Band, Ultra High Frequency (UHF) and Hyper Band. It gives the percentage of homes that receive a channel on a particular band.

TAM PPT

Key to the system - PeopleMeter

Set Monitoring Unit - PM

Detector

Sensors TVTV Tuner

Module

.

1 235

4

9

67 8

121110

VAC TT

Remote

Socio-Economic Classification GridEducation of Chief Wage Earner

School School SSC/ Some Grad./ Grad./Illterate Upto 4 yrs/ 5-9 yrs HSC College Post - Post -

Literate but but not Grad. Grad.Occupation of no formal Grad. Gen. Prof.Chief Wage Earner schooling

1 Unskilled workers E2 E2 E1 D D D D2 Skilled Workers E2 E1 D C C B2 B23 Petty Traders E2 D D C C B2 B2

4 Shop Owners D D C B2 B1 A2 A25 Businessmen/ Industrialists

{ With No. Employees : }

None D C B2 B1 A2 A2 A11 - 9 C B2 B2 B1 A2 A1 A110+ B1 B1 A2 A2 A1 A1 A1

6 Self employed Professional D D D B2 B1 A2 A17 Clerical/Salesman D D D C B2 B1 B1

8 Superisory Level D D C C B2 B1 A29 Officers/Executives Junior C C C B2 B1 A2 A2

10 Officers/Executives B1 B1 B1 B1 A2 A1 A1Middle/Senior

Education of Chief Wage EarnerSchool School SSC/ Some Grad./ Grad./

Illterate Upto 4 yrs/ 5-9 yrs HSC College Post - Post -Literate but but not Grad. Grad.

Occupation of no formal Grad. Gen. Prof.Chief Wage Earner schooling

1 Unskilled workers E2 E2 E1 D D D D2 Skilled Workers E2 E1 D C C B2 B23 Petty Traders E2 D D C C B2 B2

4 Shop Owners D D C B2 B1 7 A25 Businessmen/ Industrialists

{ With No. Employees : }

None D C B2 B1 2 8 A11 - 9 C B2 B2 B1 1 4 210+ B1 B1 1 1 1 A1 A1

6 Self employed Professional D D D B2 B1 3 8

7 Clerical/Salesman D D D C B2 B1 1

8 Superisory Level D D C C B2 2 19 Officers/Executives Junior C C C B2 B1 14 4

10 Officers/Executives B1 B1 B1 B1 2 5 4Middle/Senior

SEC Grid - As per TAM sample

71 SEC A respondents out of 312 home sample

SEC A sample by Education and OccupationEducation % of SEC A Sample

1 School from 5-9 years 1

2 SSC/HSC 1

3 Some college(incl. Diploma) but not graduate 8

4 Graduate/Post-Graduate -General 61

5 Graduate/Post-Graduate -Professional 28

Occupation % of SEC A Sample

1 Shop Owners 10

2 Businessman/Industrialists with 0 employees 14

3 Businessman/Industrialists with 1-9 employees 10

4 Businessman/Industrialists with 10+ employees 4

5 Self Employed Professionals 15

6 Clerks/Salesmen 1

7 Supervisory Level 4

8 Officers/Executives- Junior 25

9 Officers/Executives- Middle/Senior 15

Universe

• Total estimated population expressed in ‘000s or Millions for an Audience group or a sub group

Audience

• Also referred to as Target group, Target or Target audience or most commonly used term is TG

• Refers to a set of people defined demographically using variables like SEC ( social class), Age, Gender, Channel Access - Terrestrial or Cable & Satellite, etc.

Reach

• Definition :

– % of the audience group / sub - group who have watched the channel or a day part or a time slot or a programme for the pre-specified length of time at least once during the pre-specified period of time (e.g. day or week, month, etc)

• Most commonly used threshold : 1 minute or more

Reach - example

e.g Aakaash’s Cummulative Weekly Reach is 70% amongst C&S, 4+ years

means 70 per cent of all individuals aged 4 years and above in C&S connected TV homes in Calcuttq watched Aakaash at least once during the week for 1 minute or more

Rating• Also known as TVR, TRP, ATRP, time weighted rating

• Definition:– % of the audience who watched a programme or a day part or a time slot

averaged over the duration of the programme or a day part or a time slot expressed as a percentage of the total estimated universe base

– Each viewer is accounted to the extent of the programme/ day part/ time slot watched e.g for a 30 minute programme if person X watches 15 minutes, he is accounted for 50% (15min/30 min)

Rating contd.

• Thus, the rating is computed considering two variables:

– No. of viewers amongst the total estimated universe

– Time spent on viewing out of the total duration under consideration

Assume, no. of people in the Universe (Kolkata) = 5

Programme / time band duration = 30 min on Aakaash

Person Channel & Amount of time watched

A Aakaash for 15min B Aakaash for 5 min C Aakaash for 2 min D did not watch E did not watch

An example

(No. of indvls. who have watched 1min.or more) x 100Reach % =

Universe

Hence,

3 x 100Reach of Aakaash % = = 60%for the 30 mins. 5

An example (contd.)

(Individual x time spent)Rating % = x 100

Universe x duration of prog./time slot

Hence,

{ (15/30) + (5/30) +(2/30)} Rating % for Aakaash = x 100 for the 30 mins 5

= 14.67 %

An example (contd.)

Difference Between Reach & Rating

• Reach: Just a count of no. of people meeting the criterion of viewership threshold (e.g. 1 min)

• Rating : Count of no. of people meeting the viewership threshold criterion

PLUS

Proportion of the total time consumed

Channel Share

(No. of People Reached x Time spent)particular channel

S (No. of people reached by XYZ channel x Total time spent on XYZ channel)

X 100

Denominator is a summation across all available channels

CPRP (Cost per Ratings Point)

CPRP = Cost / TVR

CPT (Cost per 000s Audience)

CPT = Cost / (TVR * Universe in 000s)

REACH = TAM = REVENUE

TAM Wrap up

• TAM is the industry’s quantifiable parameter for measuring TV viewership

• TRP – This viewership is measured in units of TRP

• GRP – Total TVR of a channel over a day / week is the GRP (Gross Rating Points)

TAM Calculation

• TS – Time Spent of the viewer on a particular programme

• Reach – The Channel availability to the end user through MSO’s, Direct to Home platforms

• TVR = TS X REACH• Higher the TVR Higher Revenue

THE Basic Answers

Unlocking Distribution : - The Key to Success in Television Broadcasting

and in Revenue Generation

“Is a Program just a program ???”

“Every Program is a Brand by itself”

A Brand is a Brand is a Brand...It may be a FMCG, Durable, or TV channel Program

The 4 marketing Ps work for a channel/program too.....

Distribution / Placement

Promotion

Pricing

Product/Program OUR AREA OF CONCERN

Importance of Channel Placement

Distribution / Placement

- Placement of the Channel in a specific frequency band

- Placement drives Channel availability

- Channel availability drives channel trials

- Trials converts to loyalty over time

Wondering . . .Why are we looking at Channel Placement

data ?• Doesn’t Viewership say it all ?

The way ratings are computed :

1. Number of people reached by the program

&

2. Proportion of Time Spent on the Program

Today, Reach is dependent on ...

1. Accessibility provided by the cable operator by placing a channel at a specific frequency band

2. Type of TV set owned by the household(Whether B&W or Colour)

Today, Reach is dependent on ...

• Prime : E2 - E12 (All TV Sets)• Color/Mid : X, S7 - S11 (Color TV Sets)• S : Y - Z+2 (New Sets)

» S1 - S6» S12 - S20

• Hyper : S21 - S40 (Higher End Sets)

• UHF : 21 onwards (Almost all)

Effect of S-band : MTV v/s B4UBrings in more viewers for B4U

y = -0.5x + 42.9

y = 0.3x + 11.1

0

5

10

15

20

25

30

35

40

45

50

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

S-Band CS 5min+ CS 5min+ S-Band Linear (CS 5min+) Linear (CS 5min+)

P P+C P+C+S P+C+S+H P+C+S+H+U

B4U -0.22 0.40 0.65 0.64 0.64

MTV 0.69 -0.17 0.77 0.79 0.78

Channel availability was correlated with viewership @ 5min+. The coefficients were clearly in favour of S-band.

Distribution push yield results for ETV-Bangla in Calcutta

Connectivity-Reach trends for Eenadu - Bangla in Calcutta

0

10

20

30

40

50

60

70

80

90

100

Weeks

% o

f Hom

es

P P+C P+C+S P+C+S+H P+C+S+H+U Reach

• Dramatic improvement in Reach with increased Colour/Mid band activity

• An additional 10% purely on Programming/Promotion basis during the

elections

Aajtak - A forecasted success story !

0

10

20

30

40

50

60

70

4 5 6 7 8 9 10 11 12

Connectivity

Reach

1 Attracting more people

2 The right people

3 Make them stick for more time

4 Schedule it at the right Time

5 Creating the right Environment

6 Create Loyalty - Episode over Episode

7 Capitalizing on competitors Ebbs

8 Being distinctive will definitely help

9 Keep an eye on the category trend

9 Ride on a winning horse

The 10 key Brand Commandments

A Sample Of TVR/REACH/TS

The Power of Distribution

• MSO’s• Direct to Home

- The Placement of the Channel with the MSO’s- The Position of the Channel within the MSO

TV Revenue• Spots / Commercials / advertising time• Commercials are calculated at PTS, per ten seconds.

The cost PTS depends on the rating of a programme and the potential viewership of a event/programme.

• Aston Band• POP UPS• Logo window• Branding- Sponsorship/ co sponsorship, naming rights, associate

sponsor

• Slots• In programme• Advetorials, Special interviews• Events• Tie ups, Gifts and Prizes• SMS• Pay TV / FTA

Making Television Interactive

• Television though an active medium tends to play a passive role since it sometimes gets relegated to the background.

• To make television interactive various online TV programmes are being developed where in the viewer and the audience on the set have the same feeling.

• Call ins, opinions, interactive game shows…

TV Management• Programming • Marketing• Sales• Research• OthersMarketing of Media is different from the marketing of

other products since here you market the media product/vehicle to the consumers , but your revenue comes from the advertisers.

Different genres of TV Channels help in create specific vehicles to target different TGs

The Future• New technologies and a booming economy will help double

revenues in India’s television industry by 2010, but regulatory barriers could impact growth in the world’s third-largest cable TV market,.

• LIVE MARKET: India was Asia’s second largest pay TV market last year with revenue of about $3.6 billion, roughly the same as China. But the country is expected to grow to $10.5 billion by 2015 to join Japan as Asia’s largest.

• It is estimated that India is set to become Asia’s leading cable market by 2010, the largest satellite market by 2008, and the most lucrative pay television market by 2015. Turnover for multichannel video, including cable, satellite and Internet protocol television (IPTV), will jump to $7.2 billion from $3.6 billion by the end of the decade,.

• In 2005, 53 per cent of Indian households owned televisions, and 57 per cent of these, or 65 million homes, had cable TV. Advertising revenue for cable television was $1.02 billion in 2005, and is forecast to grow to $1.8 billion by 2010.

• Analogue would remain the dominant technology over the coming decade, and cable is expected to remain the core advertising platform for television, but new technologies would generate increasingly higher advertising and subscription revenues.

• DTH FARES: Broadband penetration will also expand on cheaper personal computers and broadband rates and greater consolidation among cable operators, estimating that the number of subscribers will grow from 0.9 million to 7.7 million by 2010.

Radio• 1935 – 1st broadcast in India• 1977 – 1st FM Service from Chennai• 1993 FM went private. In Kolkata Times Fm and RPJ bpught

slots on AkashVani FM services• 1999 – The 1st phase of privatisation in its present avatar

started• 2005 – The second phase was started followed by licenses

were auctioned for tier 2 towns• Till 1999 AIR was the only Radio Station covering 99% of the

geographical area as well as the population of India.• Even though it had such extensive reach and coverage Radio

suffered in its effectiveness as a medium of influence as well as a source of Business. Attracted only 3% of the total ad spend.

The growth• 1999 – Phase 1 – 21 stations set up across 12 cities Mirchi,

Red, City...• 2005 – Phase 2 – 338 frequencies for 91 cities• The imagery of Radio suffered till privatisation came in. It is

still regulated with News and current affairs not allowed as yet.

• The US has over 10000 FM & AM stations . China with its restrictions has 1000 stations and Indonesia which is 1/10 that of India also has 1000 stations

• USA 94% of all consumers listen to Radio every week. 20 hrs /wk

• India 32 -35 % (8 to 9 hrs /wk)• USA 30% Home ; 45% Car : India 84% Home ; 5% Car

Benefits• Passive Medium• No literacy Required• Wireless• Cost effective, requires only 8% of that of a TV Station. Very

negligible cost of maintenance.• Interactive – Theatre of the Mind• Localised• Prime time does not clash with TVFutureNiche Stations – sports, ghazals, talk radioSatellite RadioInternet RadioCommunity Radio

Benefits• Passive Medium• No literacy Required• Wireless• Cost effective, requires only 8% of that of a TV Station. Very

negligible cost of maintenance.• Interactive – Theatre of the Mind• Localised• Prime time does not clash with TVFutureNiche Stations – sports, ghazals, talk radioSatellite RadioInternet RadioCommunity Radio

Revenue• Spots (PTS)• Branding – Timex Time Watch, Maruti Traffic News• Sponsorship• R J Mentions• Events• Gifts, Prizes, Tie – ups• Advetorials – Will happen with news content mainly. Now as

Business Badsha (Special Interviews)• Classifieds with Special Programming• SMS• Measuring Radio - RAM

Content• Format Radio – Talk, News, Sports, Music, Women …• Remembering the Station – Dial Position, Station Format, Tag

line• Sonic Identities• Programming – The Radio Clock

- Playlist - Intertials- Commercial load- Music Rotation & Flow

Films – The world of Cinema

• The history of film spans over a hundred years, from the latter part of the 19th century to the beginning of the 21st century. Motion pictures developed gradually from a carnival novelty to one of the most important tools of communication and entertainment, and mass media in the 20th century. Motion picture films have had a substantial impact on the arts, technology, and politics.

• By 1907 there were about 4,000 small “nickelodeon” cinemas in the United States. The films were shown with the accompaniment of live music . In general, cinemas were set up in the established entertainment districts of the cities. In other countries of the Western world the film exhibition situation was similar. With the change to “nickelodeon” exhibition there was also a change, led by Pathé in 1907, from selling films outright to renting them through film exchanges

• The litigation over patents between all the major American film-making companies continued, and at the end of 1908 they decided to pool their patents and form a trust to use them to control the American film business.

• But the market was bigger than the Motion Picture Patents Company members could supply. Although 6,000 exhibitors signed with the MPPC, about 2,000 others did not. A minority of the exchanges (i.e. distributors) stayed outside the MPPC, and in 1909 these independent exchanges immediately began to fund new film producing companies. By 1911 there were enough independent and foreign films available to programme all the shows of the independent exhibitors, and in 1912 the independents had nearly half of the market. The MPPC had effectively been defeated in its plan to control the whole United States market, and the government anti-trust action, which only now started against the MPPC, was not really necessary to defeat it.

Multi-reel films• It was around 1912 that the actors in American films, who up to this point

had been anonymous, began to receive screen credit, and the way to the creation of film stars was opened. The appearance of films longer than one reel also helped this process., starting with Vitagraph's The Life of Moses in five parts (and five reels) at the end 1909. In other countries this film was shown straight through as one picture, and it inspired the creation of other multi-reel films in Europe.

• The cinema of India consists of films produced across India, including the cinematic culture of Andhra Pradesh, Assam, Karnataka, Kerala, Maharashtra, Orissa, Punjab, Tamil Nadu, and West Bengal. Indian films came to be followed throughout South Asia and the Middle East. As cinema as a medium gained popularity in the country as many as 1,000 films in various languages of India were produced annually. Expatriates in countries such as the United Kingdom and the United States continued to give rise to international audiences for Indian films of various languages.

• In the 20th century, Indian cinema, along with the American and Chinese film industries, became a global enterprise. Enhanced technology paved the way for up gradation from established cinematic norms of delivering product, radically altering the manner in which content reached the target audience. Indian cinema found markets in over 90 countries where films from India are screened.

• India is the world's largest producer of films. In 2009, India produced a total of 2961 films on celluloid, that include a staggering figure of 1288 feature films. The provision of 100% foreign direct investment has made the Indian film market attractive for foreign enterprises such as 20th Century Fox, Sony Pictures, and Warner Bros, Prominent Indian enterprises such as Zee, UTV, Suresh Productions, Adlabs and Sun Network's Sun Pictures also participated in producing and distributing films. Tax incentives to multiplexes have aided the multiplex boom in India. By 2003 as many as 30 film production companies had been listed in the National Stock Exchange of India, making the commercial presence of the medium felt.

• The Indian diaspora consists of millions of Indians overseas for which films are made available both through mediums such as DVDs and by screening of films in their country of residence wherever commercially feasible. These earnings, accounting for some 12% of the revenue generated by a mainstream film, contribute substantially to the overall revenue of Indian cinema, the net worth of which was found to be US$1.3 billion in 2000.

Music in Indian cinema is another substantial revenue generator, with the music rights alone accounting for 4–5% of the net revenues generated by a film in India