| Indiantelevision.com's
interview with Zee Sports COO Gary Lovejoy |
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'India
is a very competitive market'
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| Posted
on 19 July 2005 |
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Desperately
trying to get across to somebody in Russia on his cell phone from
Delhi, he mumbles to himself about the (in)efficiency of telecom
companies around the world. It so happens that the score card and
other information regarding Davis Cup tennis matches being played
in Russia aren't very clear at the Delhi end because of the colour
combination utilized by the local producer at the venue. Politely
he suggests some corrections. And, then in a rasping voice Zee Sports
COO Gary Lovejoy tells the representative of the International Tennis
Federation, "Believe me, after the feed has hopped satellites
(at least two) traveling several thousands of miles to reach Delhi,
things aren't very clear with the scorecard at our end. Do something
like putting a 'shadow' or changing the colour combination as we
are putting out the matches live."
After
the call, he tells us that as a customer, Zee Sports had the right
to ask for corrections if the visuals were not clear. "After
uplink and downlink at several places midway (in Geneva and Cyprus),
signals are likely to get a bit fuzzy and technical corrections
need to be carried out," Lovejoy explains, before settling
down.
Lovejoy,
who heads the operations of the company and oversees the programming
and production for the channel, comes to Zee Sports with 28 years
experience in sports television broadcasting, the last 15 of which
have been spent in senior executive roles. In his career spanning
over three decades he has worked on six football World Cups, three
Rugby World Cups and seven Olympic Games in addition to many other
global events.
A
keen cricketer and footballer and a passionate supporter of his
home city football club Plymouth Argyle, Lovejoy doesn't mince words,
though keeping things perfectly understated in that very British
way. He speaks to Indiantelevision.com's Anjan Mitra
on the challenges he faces to establish Zee Sports in a market
that already boasts of entrenched international players.
Excerpts:
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What
is your overview of the sports broadcasting scene in India?
From what I have seen over a period of six months that I have been
here, it's a very competitive and difficult market. Especially if
a sports channel is a stand alone one. It is also challenging because
one is involved in creating and launching India's first home grown
private sector sports channel. That the channel belongs to a big
network like Zee makes the work a bit easy, but it also brings along
with it some obvious problems.
However
what should not be forgotten is that Zee Sports is an Indian channel,
manned totally by Indians, except me, of course, and that such a
channel is important for a country like India where there is an
abundance of indigenous sports.
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Do
you feel that it would be really difficult to establish Zee Sports
in this competitive market without the advantage of having cricket?
As I said, it's challenge to establish Zee Sports. We also did not
expect to be welcomed with open arms in this competitive market,
but we are competing and will carry on doing so. We'll compete for
most sports properties along with others as long as they fit in
with our business plans, knowing fully well that dealing with cable
operators too is a challenge.
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You
didn't answer the question on cricket. Is non-availability of cricket
hampering Zee Sports' growth?
It's not that simple an issue. It's not a question of having cricket
or hockey or tennis or golf. Yes, up to an extent cricket could
have helped, but these days Indians are getting exposed to other
sports and related activities too, which owes it genesis to socio-economic
factors and consequent increases in disposable income.
But
the boom and bust (because of cricket) isn't good for the sports
industry or broadcasting. India as a country has a massive potential
and a contractual future (read dependence on cricket) isn't encouraging.
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'We
did not expect to be welcomed with open arms in this competitive
market'
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Cricket is important, but the Indian team plays the game 60-70 days
a year if you see the calendar of activities. What would people
and broadcasters do in the remaining 300-odd days?
It's our duty to figure out what can be done and how we interpret
the information available on demographics, which would lead to a
viable business plan with or without cricket.
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Did
Zee interpret the information available on cricket correctly? Critics
say that Zee's bid of $ 308 million for domestic cricket was on
the higher side.
I wasn't
here when the infamous bidding episode took place for Indian cricket.
But from what I have come to understand at Zee is that people here
have done their arithmetic well and I have full faith in their number
crunching.
Moreover,
it's not for the others to comment whether Zee bid high or low for
cricket. Zee has a business model and it followed that. Who are
others to criticize it?
(Gary
Lovejoy had come down heavily on Doordarshan director-general Navin
Kumar's statement at a CII-organised seminar on sports broadcasting
where Kumar said that the cricket bids were inflated and "unsustainable.")
However,
having said that, I must admit that as and when the time comes,
we'd bid for cricket - whatever is available. But it should suffice
to say that we are not hiding behind the network. These are early
days yet and the channel is not distributed properly, but slowly
we'd build up our equity.
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What are the advantages of being part of a big TV network like Zee
Telefilms and being an Indian channel?
Being
an Indian channel, Zee Sports certainly would be looking for sympathy
and support not only from the industry and sports federations, but
also the viewers.
As
part of a big network, issues like distribution does get taken care
of, though I am given to understand that it's not easy to distribute
any new channel in India. Here again, we would expect the cable
community to be more sympathetic to Zee Sports because our focus
is totally Indian and unique. You may say that at present Zee Sports
has lot of international programming, but these are early days and
we are still sprucing up the programming line up.
Apart
from distribution, cross promotion is another advantage of being
part of a big network. For example, Zee Sports promos are carried
on other channels (like on Zee Café's Friends series)
where we feel the audience profile matches with that of the sports
channel. If Zee Sports hadn't been part of a network, probably,
I wouldn't have taken up this assignment in this competitive market.
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There
are already established sports channels in India, yet others like
NDTV are looking at the genre. Would you say that sports broadcast
business is becoming attractive?
I
don't think any sports channel is making money yet. Having sports
channels is not a lucrative business in the country yet, but could
become one in future with newer technologies coming in helping in
distribution of sports content. Zee Sports has been started with
an eye on the future.
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'These
are early days yet and the channel is not distributed properly,
but slowly we'd build up our equity'
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What
is the global take on sports broadcast business?
Globally
too sports broadcasting is not an immediate money-spinner. It's
an expensive business because rights cost are spiraling, heavy money
is to be invested if top quality production values are to had and
manpower also is costly.
That's
why I said that being part of a big network helps. We can relax
a bit and not have too stiff a target. However, that does not mean
Zee Sports doesn't have a business plan and annual targets. It has
them all. Still, it's also comforting to know that one is part of
one of India's biggest broadcast networks.
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Are
there any global standards or time frame for sports channels to
start making money?
It
depends on the business plan, state of broadcasting in a country
and also the attitude of the government towards sports broadcasting
as a business venture. If I may give an example, EuroSport (that
was started and established by Lovejoy) took eight to nine years
to start making money. But, then there is the example of another
sports channel that I was associated with that went bust before
it could even go on air. EuroSport was a slow burning success, while
NTL's ambition to have a sports channel was a spectacular failure.
Moreover,
sports market differs from country to country. What may have been
a wrong decision in Paris, could work very well in India. The way
to negotiate this sports landscape is getting the foundation right
and strong. A misjudged property could sink a lot of money and which
could sink the venture too in the process. So, what I'm trying to
say is that I cannot give a time frame for Zee Sports to start making
money, which doesn't mean we don't have business plan.
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'Globally
also sports broadcasting is not an immediate money spinner'
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What
is your take on the Indian government's proposed move to make it mandatory
to share feeds of events of national importance with Doordarshan?
Would it affect the sports federations' earnings?
To answer the second part first, yes. Lack of confidence in the industry
would have a ripple down effect on sports federations too. If there
is third party (government) interference, it makes things cloudy.
That's not what people would want, I am sure. |
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Do
you feel that the legislation has some hidden agenda?
There's no clarity on the matter yet.
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The
government is giving the example of Australia and the UK where there
is a list of protected sporting events. With your vast experience,
do you agree that India too should have similar laws?
The significant thing is that there always has been a degree of
control in the UK and whenever business models have been made, the
law had been factored in. Now suddenly 49 years later (UK framed
the sports law in 1956), India wants to do the same. Is the business
community in India 49 years behind? One has to understand that the
India of today is not the UK of 1956.
India
is a fairly mature market where digital TV, cable TV, DTH are flour
sighing. Why is the Indian government going back to an early stage?
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Would
private sports broadcasters resist the government move?
If the government or anybody else tries to dictate how Zee should
conduct its business, it would be resisted. If the government is
trying to protect the commercial interest of DD, then it also has
a duty towards private enterprise, which gives employment to a majority
of Indians. DD should not be allowed to acquire rights through special
privileges and act in a restrictive manner.
This
issue has to be looked at from all angles and debated thoroughly
with the industry before being put in place. I'd say there's no
need for such a regulation. Let the market forces do the needful
and let the industry iron out the rough edges with DD without government
interference.
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| (Pictures
by SANJAY SHARMA/Indiapix Network) |
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