| Indiantelevision.com's
interview with SET India executive vice president Rajat Jain |
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"Cricket
is not just a business plan for Max. It is a distribution
driver for the One Alliance"
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| Posted
on 10 July 2004 |
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After
being absent for over a year on the cricket front, Max is all set
to steal the limelight. It has two mouth-watering tournaments back
to back. First India take on arch rivals Pakistan and Australia
in Holland in August. Then you have the ICC Champions Trophy in
September which India has to try and defend.
On
the movie front, Max is still in the process of finalising its acquisition
deals. The man at the helm of things, business head Rajat Jain,
is in transit mode. From August, he joins Disney to head its India
operations. Indiantelevision.com's
Ashwin Pinto and Bijoy AK caught up with
Jain for what looks like being his final media interview for Max.
Excerpts:
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Let's talk first about the upcoming cricket. How have you planned
to create hype around the Holland Tourney and the Champions Trophy?
In the past couple of years we have showcased cricket in a way
which is unique and which has really worked. It has increased ratings
for the non-India matches which has thus far been the main issue
with cricket in terms of their relevance to the Indian viewer. In
the World Cup there were about six India matches and for The Champions
Trophy you have a guarantee of two matches involving India.
We
created a lot of excitement around the game and transformed it from
just pure cricket to cricket entertainment. The challenge that we
have now is to take that execution to the next level. I think that
from a concept point of view the whole concept of expanding the
audience by bringing the family in as well as the entertainment
angle to cricket has worked. We are not looking at changing this
position.
This
time you will be seeing newer things in Extraa Innings. You
will be seeing newer talent. There will also be new segments. Technology
has come a long way since last year's World Cup. Mobile phone penetration
has shot up and we will bring in a heightened sense of interactivity.
Our aim is to get the viewer more heavily involved.
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What
new elements is Max proposing to add in terms of the packaging and
presentation of these tournaments? It is in this area where you
took the lead in the past.
Apart from what I have mentioned above, in every ICC tournament
there is some technological improvement. It could be the incorporation
of Hawkeye, new camera angles. From 22 cameras it went up to 25
cameras. The locations are better strategically. So the coverage
will be better from the technological point of view.
Mandira
(Bedi) and Charu (Sharma) will continue to host Extraa Innings.
However, around them the talent and the colours will be different.
Our Tiger character will be different and we will create fresh situations
around that. We have created a whole new set of animated characters.
That is not to say that the older set is not good.
It
is fantastic but in television you need to constantly innovate by
creating new things. The creative will be different and that is
something we are still discussing and working on. The commentators,
be it Tony Greig or Ian Chappell, will not change. The non-ESPN
contracted people will definitely be there.
In
the analysis section we will rope in people from the cricket, film
and journalism fraternities, We will also be doing roundtable events
before and after The Champions Trophy. This will also have people
from the PR, advertising fields voicing their opinions. 15 20
top-notch people will sit together and brainstorm about what has
happened in the past and how we should take things forward.
As
a conceptual point you will see more humour creeping into our coverage.
We have reached the top and this is our way of going even further.
Since The Holland Tourney and Champions Trophy are near each other
we are looking at them as one unit. The next big push will come
in the next Champions Trophy and the with the West Indies World
Cup in 2007.
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You
mentioned mobile. Any specifics on that?
After the last World Cup we launched our own platform 2525. This
is being used for Jassi, Maxs Maha Movie package.
Last time we had Prediktaa which was a tie-up with Indiatimes
8888. Now we will be doing our own Max Game on our platform. 2525
also has link ups with all the mobile phone operators in the country.
This
will give us a new revenue sharing possibility. Mobile phone penetration
is 45 million. This will give us an opportunity to build up our
brands further.
Last
time it was cricket centric quizzing. This time since cricket appeals
to a much larger segment, our contests will be very generic. Your
mother, my wife, anybody can participate. It is not going to be
about how many centuries someone will score in a tournament. It
will be simpler. We are not a sports channel that digs deep down
into the definition of sport. We are into stretching the concept
wider so that the sponsors, advertisers, the ICC get value. Sports
channels which keep digging deeper and deeper into a sport are not
expanding the viewership base.
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What
major promotional and marketing activities are in the pipeline in
the next couple of months?
There is a promotional campaign being worked upon. We will hit the
air and ground in August. For the Holland trophy we will be doing
a campaign from the third week of July. The catch line is cricket
fever is back on Max. This will be the brand promotion of cricket
under the aegis Deewana Bana De.
It
is giving the viewer the feel of things to come. After all we have
been absent in terms of cricket for a year and a half. It has just
been movies and more movies. The passion of cricket whether it is
done through glamour, statement or a personality will be gotten
through in the campaign.
The
day before the Holland Tourney kicks off you will see hoardings
and print insertions. There will also be on air contests where the
winners will be taken to Holland or England as guests of Max to
see the matches. There will also be local level promotions with
the media fraternity.
Of
course you dont need to promote cricket very much. Ten Sports
proved it with the India Pakistan series. We will spend money not
promoting the event per se but promoting cricket as a generic property
on Max and the impact of cricket viewing on Maxs slogan Deewana
Bana De.
The
aim is that post cricket the value of Deewana Bana De continues.
I will not spend money saying see India play Pakistan tomorrow.
The media will in any case write lots about it. For me, the money
spent will be to build Maxs brand. It is not about cricket
as a sport. It is about how cricket is a tent pole in my strategy
to build the Max brand. Champions Trophy is my next tent pole. Then
in December the next tent pole will be either a big movie or an
event.
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What
plans do you have as far as using brand ambassador Kapil Dev is
concerned?
He will definitely be there as far as the whole cricketing feature
is concerned. He will be doing different things this Time. Kapil
has a great passion for coaching. So you will Kapil on television
talking to kids and telling them what to do.
This
will be in the context of creating value for Extraa Innings.
He will also be there on the live days. He will provide insights
as an analytical celebrity. He will not be doing commentary as he
has always maintained that he is not a commentator.
His
involvement will be on the ground to build up awareness. Mandira
Gully Cricket is currently on. Kapil will go to a couple of places
to support this initiative.
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The
roles seem to have reversed. Mandira seems to be the peg on which
Kapil is hanging...
No! Kapil is not hanging on Gully Cricket. He is hanging on
his own. The last campaign where we spent Rs 20-30 million was entirely
about Kapil. There was no Mandira. In the lead up to the Champions
Trophy Kapil will feature in promos.
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"We
are not a sports channel that digs deep down into the definition
of sport. We are into stretching the
concept wider so that the sponsors,
advertisers, ICC get value"
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But
today in the media all you hear about is Mandira doing this and
Mandira doing that?
It depends on what activity is on. Now it is Mandira Gully
Cricket. In Lucknow there is a huge buzz around the event. Last
week I was in Chandigarh and Ludhiana there was huge media coverage
on Mandira Gully Cricket. It is not Mandira as a celebrity
which is the story. Mandira is a way to get you mileage. The story
is about getting women out of their houses and participate in cricket.
Last
year we got some of them to watch cricket. Now we are talking it
to the next level by getting them to be actively involved in the
game. In Ludhiana in the 42 degree heat there were girls and women
out there in the parks wanting to play cricket with Mandira. For
them it is about getting a few minutes of fame. At the end of the
day the whole multiplier effect of the media is a promotion. Last
time we had played Gully Cricket with Kapil. This is just
a sequel.
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Are
you planning any more cricket based shows that will combine the
spectacle with Bollywood as had been done a couple of years ago?
No!
The way for us to promote cricket is not serious half an hour shows.
Also we are a back to back Hindi movie channel. Anything that you
do to break the whole pattern is not great for the movie business.
Max in the last three out of four months has been the number one
movie channel in overall GRPs, ratings.
We
are pretty much at the top and we dont want to lose that position.
We will be promoting cricket through high frequency, short duration,
entertaining and interesting fillers, interstitials and vignettes.
These will be of the nature of Cricket Dil Se or Hum Kissi
Se Kum Nahin or Khiladi Number One. This time we are
trying to get more human interest stuff from cricketers and their
families. We are trying to do something for the sponsors on the
channel, which gives them mileage. ESPN has a half hour cricket
show for 52 weeks. For me, to create awareness about that will take
13 weeks. We had done a show Cricket Masala that was a flop.
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Moving
away from the two tourneys, bidding for India cricket rights for
the next four years opens up this month.
Yuo feel The Rs 700 crore (Rs 7 billion) figure for the rights which
the media has been throwing around is high. Why do you say that?
Anything is possible. It depends on supply and demand. Last
time it was roughly Rs 270 crores. I really do not think that the
price has gone up three times. The price would be reasonable unless
of course you have one party who is determined to have the property
at all costs. Cricket though is not just a business plan for Max.
It is a distribution driver for the One Alliance. There is a huge
image rub off that cricket has given us.
People
know what we can do with cricket. There are two ways to look at
India cricket rights. One is what is the market? Last time there
were two players in the fray. This time there might be six players.
Some will be driven by the instinct to survive. Some will want to
add to their coffers while others will be driven by no logic. It
will be up to me to take call when I know the price, be it $150
million or $ 200 million.
I will
have to factor in whether Cas will happen or not and whether pay
per view will happen in the next five years. It is not that if the
price reaches $ 200 million I will not bid. Of course everybody
will bid. You see that you will have a certain number of games over
a five year period. You can convert that into revenues, distribution
push. For me the value may be X, for ESPN the value may be Y while
for Ten Sports the value may be Z. Some may it as a loss leader
while others may see it as a profit making mechanism.
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In view of the controversy that engulfed Ten Sports when India toured
Pakistan it would seem most unlikely that the India cricket rights
would go to a pay channel. And since the argument last time was
that everyone should be able to see it, wouldn't a Sahara be on
a stronger wicket?
There
is no ruling on that. I think that the rights will also go to a
private broadcaster. From a national perspective DD would definitely
like to be in the game. Terrestrially it will probably go to DD.
Everybody will want to see it. In India there are 45 million cable
and satellite homes.
There
will likely be a split between terrestrial rights and C&S rights.
The problem for a Sahara for instance, though it is free to air,
is that there are 40 million homes that do not have it. So what
will happen there? How will Sahara show it to a chap in a Jabalpur
village who has no access to cable?
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Apart from India cricket in the near future are there any other
cricket properties up for grabs that you would be interested in?
There are no others. All the properties have been distributed.
We do look at all the boards but all have been taken up. Five to
six are with ESPN Star Sports.
A couple
are with Ten Sports. The chance is that some boards come together
and create a tournament as what was done for the Holland tourney.
If it should happen every year then it will obviously become a hot
property to go for.
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What
time frame has been set for recouping the massive investment made
in ICC cricket?
We are hopeful that it will happen over the investment period,
which is till 2007. We are aiming to do more than just recoup because
we have to do something for the companys shareholders.
The
Indian cricket team is fortunately doing well. The passion for the
game is growing which is being reflected in the prices that advertisers
are willing to pay.
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What
are the major changes that have taken place in the Indian sports
broadcasting sphere since you launched?
Well, since we launched, there's been one major change in the
Indian sports broadcasting sphere. Thanks to Max, viewers dont
have to just watch a seven hour vanilla telecast of live cricket,
but can look forward to an extended and far more engrossing experience
of total cricket entertainment.
That
apart, the competition has been emulating our innovations and even
our passion statement. Otherwise, there is yet to be another sport
apart from Cricket than can command any semblance of a respectable
viewership in India. So no major change there.
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What
changes can we expect in the near future?
I guess in the foreseeable but not so near future, DTH will revolutionise
sports broadcasting, as directly paying smaller numbers of viewers
of non-Cricket sporting action will make the acquisition of those
sports more viable by broadcasters. |
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To
what extent has the concept of marketing a television sports event
changed?
Considerably. Earlier, it was only through on-air promos and
some print ads and a bit of outdoor like hoardings or busbacks etc.
But when Max acquired all the limited overs ICC Cricket all the
way till 2007, we signed up Kapil Dev as Brand Ambassador, and took
him to several cities across the length and breadth of India.
We
started the trend of having a sports (read Cricket!) luminary as
Brand Ambassador, and other channels (read ESPN Star Sports) followed
suit. We pioneered the innovative Gully Cricket-type ground activities,
and also took Kapil Dev to the homes of our viewers. And in fact,
the entire focus, as far as Max was concerned shifted to the entertainment
potential of Cricket for the female viewers.
We
changed from the earlier paradigm of positioning cricket as just
live cricket action for the frenzied male cricket buff.
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Would
Max be looking at airing other sports besides cricket? This would
expand the brand identity beyond the three pillars of cricket, movies
and events.
First, one correction: We have two pillars: Movies and Events.
Events for us included Cricket, which, too, we treat as an event.
We wouldnt mind airing other sports, but that would depend upon
finding something to fit in with the channel philosophy of Deewana
Bana De - of passion. |
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Would
a channel dedicated to just one sport work in India?
Name
ONE other sport apart from cricket that is a bigger passion in the
country than Hindi Movies are?
Even
after India won so many hockey tournaments, there still is not strong
viewership for hockey at all. What other sport apart from cricket
in India can match up to even a tenth of cricket's viewership potential
or fan following?
We
at Max believe in acquiring properties that match up to our passion
positioning of Deewana Bana De. And in Movies and Mega events like
Cricket, we have both.
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Territory
wise how much would the rights for The Champions Trophy go for in
participating countries like Australia and South Africa compared with
us?
It would be much less elsewhere. Firstly India drives the business
of cricket. 80-85 per cent of the revenue comes from here. In addition
in those countries cricket is competing with a whole lot of other
sports. You have soccer, rugby which are equally if not more popular.
In
India apart from cricket, we do not have a presence in any other
sport. So there is a single minded focus on the sport. The ICC is
now struggling to build up interest in cricket in countries like
the US. There cricket is non existent but they are still looking
at organising tournaments there.
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Have
sponsors already been signed up for the two
tournaments?
Last time in The Champions Trophy, the Extraa Innings segment
was not attractive. People did not buy it. In the World Cup it sold
because the 2002 Sri Lanka tournament did well. This time it is
already gone and we are still two and a half months away. The Champions
Trophy has sold out.
Maruti
and Samsung are primary sponsors of the Champions Trophy. Perfetti,
Pepsi, Hero Honda, LG, BPCL and Hutch are the associate sponsors.
The
Holland Tourney will be sold separately (title sponsor Videocon).
This will give other companies a chance. Crickets ad pie has
expanded over the past couple of years.
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Coming
to movies, have you completed your major
acquisitions for the year? Which are the challenges you face these
days when it comes acquiring good movies?
Some of the big movies Max has acquired this year include
Koi Mil Gaya, Tere Naam, Baaghban, Gangajal
and Calcutta Mail. Shhhh... deal is going to be completed
soon. A couple of other small movies are also in the pipeline. Mein
Hum Na, Yuva, Kal Ho Na Ho are all remaining.
We won't be signing any crucial deal in the next two months.
Movie
acquisition is a continuous process. By the end of the year we may
be looking to buy 30 - 40 films or we may have bought only 4 or
5 films. There is not enough quality to buy these days. Out of 120-130
films released every year, ten would be good. Four broadcasters
are fighting for movies and this triggers a price rise. Our challenge
lies in getting quality film content. We have to go a long way to
get that 30-40 good films not in terms of budget I can provide but
in terms of content.
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What
are the innovative ways in which you propose to present your movie
titles?
After
innovating with single ad breaks, we are now showing Hollywood films
dubbed in Hindi, which is our innovation for this quarter. You can
expect many more in the days to come. |
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Recently,
at a broadcast seminar it was pointed out that it took seven hours
for Baghbhan to finish on Max. In light of the fact that
you get so many ads a member of a consumer organisation expressed
the opinion that viewers should only pay the carriage fee. The reasoning
is that the viewer should not have to pay twice for ads and also
for content. Would you care to reply to this?
That figure is exaggerated. Trai has also asked us to provide
figures for this. Bagbhan ran for 181 minutes. We had 70 minutes
of ads, fillers and interstitials. We do run a lot of promos for
the channel and not just one ad after another.
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Abroad
what platforms are you looking to join?
We are looking to join Pehla in the Middle East and Europe. This
is for Max International. We have plans for taking it to the US
and South Africa. In the US, Max will be part of the new carriage
understanding with Echostar in the next couple of months. Max will
go abroad wherever Sony is. Sony is available on Multichoice in
South Africa, on Astro in Malaysia.
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