The Indian business newspaper Mint has unveiled a exclusive interview that reporter Vidhi Choudhary recently held with Robert M. Bakish, the President and Chief Executive of Viacom International Media Networks (VIMN), who is responsible for all Viacom media networks and associated businesses outside the US, including those operating under the multimedia entertainment brands such as Nickelodeon, Comedy Central, BET, Paramount Channel, VIVA, TMF (The Music Factory) and Game One, in South Korea, the UK, Australia, Italy and India where it operates a joint venture with the Network18 group,
on the paper's official website, livemint.com, in which Robert M. Bakish talks about the entertainment giants future plans:
ETV is a good strategic opportunity for the business: Robert M. Bakish
Robert M. Bakish, president and chief executive of Viacom International talks about firm’s future plans
Robert M. Bakish is responsible for all Viacom media networks and associated businesses outside the US.
Mumbai: Robert M. Bakish, president and chief executive of Viacom International Media Networks (VIMN) since January 2011, is responsible for all Viacom media networks and associated businesses outside the US, including those operating under the multimedia entertainment brands such as Nickelodeon, Comedy Central, BET, Paramount Channel, VIVA, TMF (The Music Factory) and Game One. Bakish oversees the company’s businesses in South Korea, the UK, Australia, Italy and India where it operates a joint venture with the Network18 group.
In Mumbai to attend the Ficci Frames conference on the media and entertainment industry, he spoke in an interview about the company’s plans to launch new channels in the country and the impact of digitization on the Indian television entertainment sector. Edited excerpts:
Could you elaborate on plans for more channels in India?
As I said, we do plan to have additional services in the national space. We see the Indian opportunity as a very compelling one.
As we look to capture the growth, we absolutely look at driving this by launching new products that would include new national television products. I’d very much like it to happen in 2013. We started by taking our existing assets with Nick and VH1.
We then launched Colors. Last year we launched Comedy Central, Sonic which is a Nickelodeon derivative, and Nick junior. They have helped us in the distribution market with digitization and beginning to help us in the ad market as well.
How much is Viacom paying to acquire the remaining 50% stake in ETV’s entertainment channels? Are they worth the price?
As part of a clarification, Network 18 bought half the entertainment channels of ETV and all the news channels and Viacom’s currently looking at doing due diligence on acquiring the other 50% of the ETV assets with the idea of combining Network 18’s half and half inside of Viacom18. I’m not going to get into valuations. We think it’s a good strategic opportunity for the business and regional markets have very strong growth potential. If you look at all the projections for India you’ll see that regional markets have higher growth projected than the national markets. We think being a combined national and regional player is very adequate to our position in the Indian market and we think there are opportunities to create value across those businesses. So there are a number of reasons why we are intrigued by this possibility.
Viacom has an option to increase its stake in the joint venture with Network18 for Colors. Would you do that?
We at Viacom are very happy with our Viacom18 joint venture, very happy with Network 18 as a partner. The joint venture has had significant success in this market... partially as a result of good management. We think the model works as it is. So we are fine with our current position.
Any concerns about the business in India?
Sure, very few things are ever perfect. If you look at our Indian business, we would like the ad market to be better. By the way, I can say that about a lot of countries in the world, certainly all the southern European countries—those are in much worse shape. But the Indian ad market is operating in a place with GDP growth in the 4.5% range, this is coming from a place where GDP was 9% growth and the ad market was growing at 15%. That’s not where we are today. We are hopeful that that equation will begin to improve as we look at the government’s forecast for next year, the 6.5% GDP range, we believe we’ll see ad market growth.
The second challenge is ensuring the second phase of digitization goes well. Phase one was and is a big deal and represented profound change in the business. Now it’s time for us as an industry to ensure phase two fulfills that promise.
Any dramatic shifts that you may have noticed in the television entertainment sector?
Certainly the most dramatic thing that’s happened in recent history is the whole digitization movement. I think it is a positive shock to the industry. You don’t usually see a whole category of business shift like that on a short time frame. I would put that one in the dramatic category... Paying for channel slots versus getting paid for fees—that equation has changed dramatically in our favour. We look forward to the second phase of digitization.
With consumption of entertainment going multi-screen, what are Viacom’s plans to tap into this new segment?
We used to have a product that could only be consumed on the living room couch and if you’re in India there is probably only one television in the house and so whoever was in control of that remote control, probably the woman of the household, would be dictating what could be watched.
Today, all around the world people have multiple television sets connected to better-than-ever pay television plans with more channel capacity. And of course they might have a wireless connection and a tablet they could use to consume content, probably a smartphone to get content on that. We have greater linear television consumption than any other point in history and then we have all these other vehicles. So at Viacom and Viacom 18 we are focused on creating great content that either spans all these devices maybe in an OTT form, or we license the same product probably in a different window.
How do you plan to maximize revenue from the content Viacom owns?
Well, because there are so many opportunities to display content, its vitally important that you own the rights. If you look at companies that are fundamentally built on acquiring content versus creating content, you much prefer to be in a creating content.
Look at Netflix as an example. Though it is not in India but in the US and UK, Viacom is becoming a very big supplier for Netflix. That has produced significant revenue. Our strategy is to own rights and then look for opportunities to expand the content through distribution fees with pay TV operators.
It is about participating in the related ad markets whether its a linear television ad market, a broadband video ad market or even a mobile market. For example, not in India but in five European countries, we have an MTV mobile service where consumers can get a handset, minutes and data in that we also have some ad inventory. So, if content is at the centre, we are looking to use these evolving media platforms as a way of fortifying existing revenue streams and generating new ones.
Also, from
Advanced Television:
Viacom planning new Indian channels
Robert Bakish, Viacom’s International Media Networks President/CEO, speaking at the Ficci Frames media event in Mumbai, India said that India’s adoption of digital TV, and an improved and trustworthy ratings system, could lead to Viacom launching new channels.
Viacom is a 50/50 joint-venture partner with TV-18 in Viacom 18, and the partnership is looking at launching more channels and developing more regional offerings, which are seeing “fast growth,” said Bakish. TV18 already owns 5 ‘general entertainment channels’ and it has been reported locally that Viacom is conducting due diligence on the possibility of expanding its joint-venture into these channels.
“The success of a JV is all about having a cultural fit. Our venture has had challenges and we have been forced to evolve. We decided to get into film production. We launched more channels like Sonic. Then we created IndiaCast to take advantage of digitisation. We see an opportunity to export content from India. We created a channel in the UK, Rishtey, using content from Colors and MTV.”
The IndiaCast system has seen the JV’s ‘Colors’ channels exported to 70 countries in what Viacom described as “reverse migration”. “Indiacast has a global multiplatform mandate.” Bakish said. “Star and Zee surprised people by coming together. We responded by creating one entity and partnered with Disney UTV to unlock the value of digitisation. While Nickelodeon and Disney compete fiercely with each other globally, the fact is that you have to look at each country differently.”
Also, from
BestMediaInfo.com:
FICCI Frames 2013: Breaking the barrier between local and global
Content is still king, and Viacom 18’s push into the non-English space with foreign content has helped break down barriers
In the session at FICCI Frames 2013 on Day 1 on “Breaking the barrier between the local and global”, the focus shifted to regional play with Sai Kumar, President and CEO, Network 18 and Board Member, Viacom 18, and Robert Bakish, President and CEO, Viacom 18 International Media Networks and Board Member, Viacom 18, holding forth.
Sai Kumar said, “Success is a very strange thing. TV18 and Vaicom18 both believe that India is a dynamic market. We have pride to say that we saw a dynamic market and a big opportunity into multi-geography and platform distribution. Viacom18 started its broadcast venture with four channels until they realised that they need to enter the regional space as well.”
He added, “The company had great success with Colors and the venture has flourished and evolved with changing markets including MTV, Nickelodeon and others. They also entered into film production and multi channel networks.”
Robert Bakish said, “We also brought in content from the UK and the US and our main IP has been content creation in the Indian media market. Content travelling from other countries, such as Fear Factor, seems to be evolving. There have tremendous changes in content for the past 10 years.”
Sai Kumar said, “It takes me back when I once said ‘Content is King’. Already monetisation of television content is at its best. Today again I stand by the same thought that ‘content is king’”.
Additionally, distribution is also improving due to the tough advertising market. “Advertising has been the softest for the longest time and the pressure from digital has amplified,” Sai added.
Also, from
exchange4media:
It's not all about biz, but about culture: Robert Bakish
Local and global content creation and distribution has been of high significance since the longest time. The joint venture between Viacom and TV18 has been an interesting journey, which has observed a number of milestones, thereby breaking the barrier between local and global.
According to Robert Bakish, President & CEO, Viacom International Media Networks & Board Member, Viacom18, it is not all about business but about culture. He points out that it is not enough to have a shared vision; a correct management fit and a lot of hard work is required. The venture has flourished and today includes a bunch of national services such as MTV, Colors, Comedy Central, Nickelodeon, Nick Junior, and film units, among others. A major step has been the creation of India Cast.
“We can safely say that it has been a great journey, even if not a long one, since five years is not a long period of time. Given the tremendous opportunities, not only will we introduce new content, but we will export content as well in the near future,” Bakish shared.
Sai Kumar, Group CEO, Network18 and Board Member, Viacom18 believes that it is critical to be extremely aligned with the challenges. He finds the learnings from Viacom to be invaluable as the group has seen success in various markets. With India Cast there might be reverse migration. According to Kumar, it is also important to export linear TV and syndicate programmes; though it is not only about syndication, but about formats that can be picked up by the rest of the world.
Elaborating further, Bakish stated, “We will continue to evolve in various ways. When the two partners came together in India, we were influenced by both local and global learnings. There were two elements that we kept in mind. The first is that we are committed to creating content for India, which needs a good team. The second is brand positioning for the content. We are an interconnected world and want to be entertained, and that is leading to productions that are not only travelling to the US and the UK, but to other parts of the global market as well. This is also when India Cast came to the fore, since today the important IP is a hit television format. Hence, the possibility of replicating content increases and formats today are a great value of scale.”
Where is the market heading?
Kumar remarked that today content consumption is at an all time high and is available on multiple platforms and devices such as mobiles, tablets, etc., even though monetisation through these varied platforms is not very high.
Commenting on India Cast, Kumar stated, “It is the second phase of partnership, which though out of adversity, has worked for us. We are extremely bullish about non-linear platforms.”
Bakish noted that the world is evolving from the economic and structural stand point, and added that there has been a rise in services such as video on demand and OTT, which have observed tremendous changes. “This creates its own set of risks and opportunities, but we need to focus on the later part. Today, one can watch programmes on tablets, television, mobiles, etc.,” he further said.
He called it an important development on the distribution part where the primary enabler is the wireless network in the house and the tablets. “Nevertheless, we have always tried to create great content since opportunities remain very significant,” Bakish added.
The outlook
Bakish maintained that the Viacom-TV18 venture is in great shape and is a great opportunity to unlock the value of digitisation. He believes that if one operates in different countries, they need to look at them differently, since each country has its own set of opportunities, even though one might have a global plan.
Kumar stressed that measurement is the need of the hour. He added, “Advertising has been the softest in the longest of time. We need to be realistic. There is lack of measurement in India. For niche channels, even though measurement of upscale viewers is difficult, we need to make an effort at an industry body level.”
Bakish concluded by saying that India is a significant market and that Viacom is looking to invest in great content to ensure that it reflects a balance. The company will continue to bring varied choices to viewers in terms of content, national launches and also a play in the regional markets.
Robert Bakish and Sai Kumar were expressing their views on day one at FICCI Frames 2013, being held in Mumbai from March 12 to 14, 2013.
Also, from
IndianTelevision.com:
Viacom18 looking at regional play and more channel launches: Bob Bakish
MUMBAI: Viacom18, the equal joint venture company between Viacom and TV18, is looking at launching more channels, expanding into regional markets and creating content for new media.
Viacom is conducting a due diligence on the ETV general entertainment channels (GECs), Viacom International Media Networks President, CEO and Viacom18 board member Robert Bakish said today. "The regional markets are seeing fast growth," he added.
Indiantelevision.com was the first to report that TV18 had offered Viacom the option to buy 50 per cent stake in five ETV GECs and 24.5 per cent equity interest in ETV Telugu. If Viacom decides to buy stake, the ETV GECs would move to Viacom18.
When asked about what kept the joint venture alive (the only surviving one in the M&E space between a global media giant and a local company), Bakish said that it is not enough to have a shared vision. “The success of a JV is all about having a cultural fit. Our venture has had challenges and we have been forced to evolve. We decided to get into film production. We launched more channels like Sonic. Then we created IndiaCast to take advantage of digitisation. We see an opportunity to export content from India. We created a channel in the UK, Rishtey, using content from Colors and MTV.”
The aim of Viacom partnering with Network18 was to make a local cultural connection. “In 2006 we realised that India offered opportunities we could not ignore. Viacom has resources but we felt the need for a local partner. JVs are a tradeoff. You don’t have complete control. Therefore it is important to have productive dialogue. In Korea, we have a JV with SBS which started a year ago,” said Bakish.
In India, the company realised that brand positioning would be key. Therefore the decision was taken to make Colors edgier and more of a risk taker. “The good news for India is that more local production money is coming in. Out of this will come quality content.” He also noted that a hit television format is the most valuable IP. “After all, a local version of ’Fear Factor’ played a key role in Colors’ launch and success.”
Network18 Group CEO Sai Kumar said the joint venture had been helped by the alignment between the two companies in terms of the scale of ambition and challenges that would have to be met. He noted that IndiaCast has allowed for reverse migration. Colors is now in 70 countries. “It is not just about the channel going abroad. Even shows like Ballika Vadhu have been being picked up abroad,” he said.
Talking about new media, Sai Kumar said while platforms like OTT and VoD represent a risk and an opportunity, Viacom18 prefers to focus on the latter. Kumar noted that 13 years ago distribution became king as there was a lack of platforms to showcase content. Today the good news is that content is once again king. "The challenge today is that while consumption of content is at its highest it has gone multi device. The different platform windows are each a kingdom. With these platforms the possibility of milking content for revenue has gone up. The long tail will stand a better chance in the future,” he averred.
Kumar called IndiaCast the second phase of the JV partnership.
“Indiacast has a global multiplatform mandate.” Bakish said. “Star and Zee surprised people by coming together. We responded by creating one entity and partnered with Disney UTV to unlock the value of digitisation. While Nickelodeon and Disney compete fiercely with each other globally, the fact is that you have to look at each country differently."
Referring to film business in India, Kumar noted that it is a great adjunct for Viacom18’s other businesses. “There are opportunities for synergies in our film business with Colors and other channels. At the same time, our exposure to film will be strategically limited. Having two films that are hits does not mean that the next three will also work. With each film you start from ground zero.”
Bakish noted that film production business is not for the faint at heart. “We had long conversations about why we were in the film production business. We have had hits and misses but that is the nature of the game. Not everything will work.”
In terms of the challenges facing the media and entertainment industry, Bakish spoke about the lack of reliability in measurement globally due to multiple platforms. “India is great to do business in but it isn’t perfect. Could digitisation have happened sooner? Sure. Could Phase one of DAS have been a solid four cities? Sure! Phase two is now happening and the industry needs to keep up the pressure to see that things work”, he noted.
Kumar noted that advertising is now at its softest. Things will not change unless the measurement system improves. More homes for SEC A could help the niche genre, he added.
