English Entertainment
MNX challenges legacy players in the movies category
MUMBAI: The rise in India’s urban educated millennials has also led to the spurt of channels in the English entertainment and movies genre. Over the last few years, several new additions have made their way including MN+, &Prive and Sony Le Plex.
In this space, Times Network has found the right set of audience for all four channels claims Times Network EVP and head English entertainment cluster Vivek Srivastava. He is aware that beating a legacy player is not an easy task. The channel says it has been head and shoulders above HBO in six metro markets.
The group has close to 1500 titles and 25-30 shows for its movies channels. The content comes from four major production houses like Disney, MGM, NBC and Warner which are long term deals. The network holds the second output of NBC after Sony Pictures Network.
English cluster of Sony Pictures Network, on the other hand, picks up the content from Disney, Warner Bros, NBC Universal, Lionsgate and PVR Pictures. &Prive and &Flix of Zeel also have a bigger library with exclusive titles sourced from many independent Hollywood players and studios such as Paramount and PVR.
According to week 32 of BARC data in the six metros, Times Network has two of its flagship channels, Movies Now and MNX, in the top five list. Movies Now is going to be an eight year old brand in December 2018 and is a home for all the blockbusters. On the other hand, MNX, the youngest channel in its English movies portfolio has been consistent in ratings since its launch in July 2017. The company endeavours to broaden the audience base to be in the top five list.
“The quarter is gone by and the revenue of MNX is extremely healthy. MNX actually completes the portfolio. We have a family brand as Romedy Now, a sophisticated brand in MN+, Movies Now is the flagship brand that houses the superhero franchise. All the blockbusters will find a space on the channel. MNX being the youngest brand in the mix, it caters to all audiences and all the various titles get a space on this channel,” Srivastava adds.
In the last two-three years, the Indian audience has evolved and become smarter and knows what to expect. “In this context, the marketing has become a lot easier as the consumer knows the content very well,” he adds. In FY19 Q1, the network got brands like Amazon, Pepsi, Airtel, Trivago, Ford, Flipkart, PhonePe, Myntra to name a few, for all its English movies and entertainment channels.
As far as the category is concerned in terms of revenue, Srivastava estimates the genre to grow by 15-20 per cent more than the previous year’s figure which was Rs 700 crore.
On the content acquisition cost, Srivastava points, “There is a little bit of correction expected in the content acquisition cost as we move forward. The correction will come on account of two things – revenue growth across years in the genre and secondly the evolution of business models as some broadcasters are sharing their first output windows with SVOD players.”
HD is the next array of growth as far as the category is concerned. According to Srivastava, there are only two genres which drive HD viewership, sports and movies. MN+ is an HD-only channel which is performing well, both from a viewership and revenue standpoint.
He gives out the formula for a successful channel as: “To sustain in the category with more than two channels, you should be able to provide fresh content to your target audience. Until and unless you have a distinct identity to the channel it will never succeed.”
English Entertainment
Warner Bros. Discovery shareholders approve Paramount deal
Investors wave through a $111 billion megamerger but deliver a stinging, if toothless, rebuke over half-a-billion-dollar goodbye packages
NEW YORK: The shareholders said yes to the deal. They said no to the cheque. At a virtual special meeting on Thursday that lasted barely ten minutes, Warner Bros. Discovery investors voted overwhelmingly to approve Paramount Skydance’s $111 billion acquisition of the company — and then turned around and voted against the lavish exit pay packages lined up for chief executive David Zaslav and his fellow outgoing executives.
Not that it will make much difference. The compensation vote is purely advisory and non-binding. The Warner Bros. Discovery board can, and almost certainly will, pay out as planned.
But the symbolism stings. It is the second consecutive year that WBD shareholders have voted against the executive compensation packages, and this time they had good reason. Zaslav’s exit deal is, by any measure, extraordinary. Under the terms filed with the Securities and Exchange Commission, he is set to receive $34.2 million in cash severance, $517.2 million in equity in the combined company, and $44,195 in continued health coverage — a total of at least $550 million. On top of that, Warner Bros. Discovery has agreed to reimburse Zaslav up to $335 million for taxes assessed by the Internal Revenue Service on his accelerated stock vesting, though the company says that figure will decline depending on when the deal closes. As of March 11, Zaslav also held $115.85 million in vested WBD stock awards — and last month sold a further $114 million worth of WBD shares.
Shareholder advisory firm ISS recommended voting against the compensation measure, citing “problematic” tax reimbursements to Zaslav and the full vesting of his stock awards.
Zaslav will be bound by a two-year non-competition covenant and a two-year non-solicitation of customers and employees after the deal closes.
His lieutenants are not walking away empty-handed either. J.B. Perrette, chief executive and president of global streaming and games, is in line for $142 million, comprising $18.2 million in cash severance and $123.9 million in equity. Bruce Campbell, chief revenue and strategy officer, will receive an estimated $121.5 million, including $18.8 million in severance and $102.7 million in equity. Chief financial officer Gunnar Wiedenfels is set for $120 million, made up of $6.6 million in cash severance and $113.1 million in equity. Gerhard Zeiler, president of international, will get $82.6 million, including $11.9 million in severance and $70.7 million in equity.
The deal itself, clinched in February after Netflix declined to raise its bid for Warner Bros., still needs regulatory clearance from the Justice Department and European authorities. Several state attorneys general are also weighing legal action to block it.
Senator Elizabeth Warren, Democrat of Massachusetts, was unsparing. “The Paramount-Warner Bros. merger isn’t a done deal,” she said after the shareholder vote. “State attorneys general across the country are stepping up to stop this antitrust disaster. We need to keep up this fight.”
If it does go through, the combined entity would be a formidable beast, bringing together Paramount Skydance’s stable — CBS, CBS News, Paramount Pictures, Paramount+, BET, MTV and Nickelodeon — with WBD’s portfolio of HBO, Max, Warner Bros. film and TV studios, DC, CNN, TBS, TNT, HGTV and Discovery+. Paramount has said it expects $6 billion in cost savings from the merger, which is Wall Street shorthand for mass layoffs on a significant scale.
The ten-minute meeting was presided over by chairman Samuel Di Piazza Jr., with Zaslav, Campbell, Wiedenfels and chief communications officer Robert Gibbs in virtual attendance. Di Piazza was bullish. “We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” he said. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
Zaslav echoed the sentiment. “Over the past four years, our teams have transformed Warner Bros. Discovery and returned the company to industry leadership,” he said. “Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders.”
Paramount Skydance struck a similar note. “Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery,” it said in a statement, adding that it looked forward to “closing the transaction in the coming months.”
The shareholders have spoken on the merger. On the pay, they were ignored before the vote was even counted.
