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| Indiantelevision.com's
interview with Taj Television India GM Rukin Kizilbash |
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'Sports
broadcast ad market to grow to Rs 7 billion this year'
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| Posted
on 26 November 2007 |
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It
has been a busy and somewhat testing time for Ten Sports.
Last year Zee took a 50 per cent stake in its parent Taj Television
while this year the channel has had to make do without any
India cricket showcase. As a result, it has had to push other
properties.
Additionally,
a plethora of cricket rights that it holds come up for bidding
in the coming months. Indiantelevision.com's Sibabrata
Das
and Ashwin
Pinto
caught up with Taj Television India GM Rukin Kizilbash to
find out more.
Excerpts:
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How has not having India cricket this year impacted
Ten Sports?
It has impacted us quite a bit. It is a fact of life that
things are not as smooth without India cricket. For each India
series you make in the region of Rs 700 million to Rs 1 billion.
Last year, Ten Sports had one series. The year before, there
were two.
However
our reach and GRPs have not been impacted. This is in part
due to WWE (wrestling). Our reach is at 30 per cent.
Next
year should be better though as we will have India's tour
of Zimbabwe and Sri Lanka.
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But
wouldn't it be a crucial phase for Ten Sports as two prime
properties - Pakistan and Sri Lanka boards - come up for bids
next year?
It
will be a crucial 12 months for us as the rights for Pakistan,
Sri Lanka and West Indies come up for renewal. But we expect
to renew our contracts.
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Will
the acquisition price for these rights shoot up with Sony
back in the race and the others showing hunger to pocket more
cricket properties?
I
don't think that the acquisition price will shoot up drastically.
India, after all, visits them just once in four years. So
when you buy board rights, you basically buy one India tour.
It is not like the ICC events where India always participates.
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Why
is it that you recently bought the South Africa rights for just
one year?
We got the rights for South Africa and Zimbabwe for one
year. We will hopefully get these rights for five years once
the current period gets over. India visits South Africa in 2010. |
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Is
cricket saturated in terms of ad rates?
No! We believe that the spot rate can keep going up. To
give you a parallel, in the US a 30-second spot for the Super
Bowl sells for $2.5 million. For us it sounds unbelievable
but in the US clients like Budweiser and Microsoft are willing
to spend $25 million on one match. They create campaigns just
for that event. An India series costs $4 million to sponsor.
So there is room to grow.
We
sold the India Pakistan series last year for Rs 350,000 for
a 10-second spot. I believe that ESPN Star Sports sold the
final of the T20 World Cup for Rs 750,000 per 10 seconds.
The next India versus Pakistan series could see spots sold
for Rs 500,000 per 10 seconds - or even more. Advertisers
realise that India cricket is the only way to reach the entire
country at one shot. Even the highest rated soap does not
reach the entire country. Its primary audience is the Hindi
belt.
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Which
is why the sports broadcasting market is going to see ad revenue
growth this year?
We expect the sports broadcast ad market to be in the
region of approximately Rs 7 billion this year, up from Rs
4.5 billion a year ago.
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Industry
estimates Ten Sports' ad revenue to be around Rs 600-700 million
this year. Is this true?
I
can't comment on our revenue figures.
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In
terms of rates, how do India cricket series stack up
against each other?
India versus Pakistan would be number one, followed by
the series against Australia. A series against South Africa
would be third. Clients need India cricket to create a big
bang. Also a lot of the ad rates depend on when a series is
held. Is it coinciding with the summer season or Diwali?
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To
what extent did T20 rejuvenate cricket?
It turned the sport upside down. It is certainly worth
a lot more from an advertisers perspective than a 50 over
ODI. The ratings for the T20 World Cup were double what you
got for the India Australia ODI series. There is a lot more
viewer retention as it lasts for just three hours. The instant
cricket that T20 offers fits in with today's lifestyle.
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'IPL
and ICL will not get in each other's way. One initiative
is from the governing body, while the other is from
a private player trying to boost the game's popularity
and reach. They can co-exist'
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Have
ratings gone up for other sports?
Not substantially. There has been some growth though for
tennis, soccer. Moto GP has also shown a decent jump. We have
gone from maybe 0.2 to 0.4.
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And
what about ad rates?
We
are seeing a surge in football. When we telecast the World
Cup in 2002, we got an ad revenue of $2.5 million. We believe
ESPN Star Sports got around $8.5 million this World Cup.
The
ad revenue you get from a non-India series like Australia
versus South Africa is probably about the same as what you
make for a season of Uefa Champions League.
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How
do you view the opportunities for broadcasters to grow other
sports in India?
The opportunities are there for other sports to grow.
Soccer, hockey, tennis are doing quite well, which we are
trying to develop. Having said that, Indian cricket drives
the sports broadcasting space. The challenge is to take the
other sports on par with India cricket.
We
have to figure out how to deliver more TRPs and revenues from
these sports. India will evolve from being a one sports nation
but it will take time - and a lot of marketing effort from
sports broadcasters to push these properties.
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Can
you offer an example of a non cricket sports event that has
grown through nurturing?
A good example of nurturing is the soccer World Cup. The
response it got last year surpassed all expectations.
When
EPL first started airing in India not many people were familiar
with it. It has developed over the years due to sustained
coverage. We will be doing the same with our properties including
motorsports.
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What
marketing innovations are being done by Ten Sports to push
these events?
We are doing an On Tour innovation. This is a six-month
on-air promotion and the sponsors are Tata Sky, Idea and McDonalds.
We take four contest winners each month for a different event.
We started off in September with WWE in Paris. In October
we took them to Kuala Lumpur for the MotoGP. This month is
the Uefa Champions League and next month is Sri Lanka Cricket.
In
January, we will be featuring South Africa cricket. In February,
there will be horse racing in Dubai. And we are marketing
them in different ways.
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Do
you see Olympics becoming bigger in India this time?
I would rather say that the Olympics as an event was
bigger in the 1970s and 1980s compared to now. For next year
I have heard that ESPN is looking to air it, besides DD. If
that happens then the event will get a bigger marketing push
that usual. Still the fact that Indian participation in the
Olympics as well as performance is limited means that interest
will accordingly be limited.
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What
are the rights you have recently bagged?
We
have bought the soccer rights to the Dutch and French leagues.
We believe that if we nurture them they can over the next
three years reach the status of EPL.
In terms of upcoming rights, the Australian Open tennis Grand
Slam rights are currently being bid for. Wimbledon rights
come up next year.
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There
is a trend of sports broadcasters doing long-term deals with
a few clients. Is Ten Sports examining this route?
No! We prefer to do yearly deals as we know exactly what
is on our calendar. Also if you do a long-term deal, you do
not know what the ad rates will be the next year and the year
after that. You could be under-selling.
Another issue is that if I say lock in Pepsi for three years,
then I exclude Coca-Cola and who knows? Maybe next year Coca
Cola ups their marketing budget and launches three new products.
I miss out on that action. With long-term deals you run the
risk of ticking off companies by blocking them completely
off the channel. These companies will then be more than happy
to hop on to a rival channel.
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How
do you see the ICL and IPL faring?
ICL will rock. At the moment there is some uncertainty
as it is a new format. But once it starts, it will catch on
in a big way. You have established names, good production
values, good stadium facilities. There will be Bollywood glamour.
So it will be a fun experience for the family.
While
it is early for me to say anything about IPL, I don't think
that they will get in each other's way. One initiative is
from the governing body while the other is from a private
player trying to boost the game's popularity and reach. They
can co-exist.
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After
acquiring stake, why did Zee decide to sell ads through Ten
Sports for its own sports channel?
We already have a dedicated ad sales team in place. We
are selling ICL for them. We are selling it on air while they
are selling it on-ground. Sometimes we package some of Zee
Sports' properties along with our channel. At other times
like for Indian soccer, it is done separately.
It also depends on the client. If say someone like an LG is
spending Rs 10 million, he may want to split it between the
two channels. So we work out a package. We have products that
Zee Sports does not have and vice versa. So it helps us sell
better. It is a joint effort in terms of sales.
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Are
you looking at organising a sports event at a
grassroots level?
Yes! We are working with Zee. We have identified three
sports and we are deciding how to go about things. We might
create an event from scratch or we might associate with an
existing one and take it to another level. Zee is working
with soccer. ESPN is working with hockey. We too are looking
at a sport.
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In
terms of other sports, do you see soccer or hockey
becoming a number two sport?
It is difficult to say which will come out on top. Hockey
has picked up with our recent win and the whole Chak De spirit.
Unfortunately, we are not playing in the Champions Trophy.
Hockey has had its ups and downs. In terms of soccer, the
Champions League is taking off. Both sports will depend on
how India fares at them. But currently, soccer is bigger than
hockey.
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How
is Ten Sports gearing up for new media? And is marketing on
the mobile going to go beyond just SMS?
We are planning to do this next year. We are talking with
Idea and Reliance in terms of how to take this forward. We
are looking for a bigger platform.
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You
did a film innovation last year where you aired
sports films. Are you planning more of the same?
Absolutely! We are planning to have the next batch soon.
It is a question of getting sports movies. We are currently
showing a series Simply the Best. Each episode looks
at a great sports person like Sir Donald Bradman, Jesse Owens.
Mohammed Ali, Sachin Tendulkar.
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Is
a one-sport channel like a Golf channel economically
viable with new distribution platforms like direct-to-home
emerging?
I think that a couple of years down the line it will be.
When DTH reaches 5 million homes, you will see niche channels
dedicated to topics like cooking, golf, travel and action
adventure coming up.
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