Daily Archives: 18 June 2015

Times Now is No.1, again

Times Now is No.1, again | Business Standard News.
Times Now has become the number one English channel once again. Within a week of being unseated by India Today television (the erstwhile Headlines Today), the leader has jumped back to its position according to Broadcast Audience Research Council or (BARC) data released on Thursday evening. BARC now releases data based on individuals and not households and therefore the numbers are different from what the paper carried last week.

On TAM Media Research numbers Times Now has remained the top English news channel on ratings though India Today TV had beaten it on reach. “Eventually any news channel can only win on content and nobody can match Times Now on content,” proclaims Arnab Goswami, president news and editor-in chief for ET Now and Times Now. The channel is a part of the Times Television Network, which in turn is housed within the estimated Rs 7,000-crore Times Group, one of India’s largest media firms.

The English news genre is a miniscule 0.04 of all time spent on TV by India’s 800 million plus viewers. But this shuffling and chest-beating is a regular feature because it impacts ad rates in the Rs 2,000 crore news television industry that is completely ad dependent.

India Today TV became number one on a strategy that rests largely on ramping up distribution using dual frequency – being on two spots on the same cable network. The Rs 476 crore TV Today Network was on two spots on 70 cable networks in the week that it hit number one. This means paying a premium of 50 per cent over and above the Rs 18-21 crore in carriage fees that a news channel pays every year. It is therefore not sustainable. The effect of the higher reach is more sampling. So while viewers have looked at the new India Today TV, they are not necessarily spending more time on it. Times Now still clocks twice the time that India Today TV does.

“The Cumulative audience gathered by India Today television in Week 21,22 and 23 has been nothing short of extraordinary. This week too, in six Megacites we have held the No.1 slot in number of Tune Ins. We hope with time, we will become the preferred alternative and the chosen destination for news that respects viewer’s intelligence and adds to his knowledge,” said a TV Today spokesperson.

What helped Times Now bounce back is using the same distribution tactic as India Today TV – dual frequency. Times Now was on a dual frequency on 53 cable networks last week against 29 in the week it lost its position according to Chrome Data Analytics and Media. Both the channels are locked in an ad war over the numbers.

Zee Entertainment: Near-term margin concerns on network expansion

Zee Entertainment: Near-term margin concerns on network expansion | Business Standard News.

The Zee Entertainment stock, under pressure over the past few months due to concerns on initial losses for new hindi general entertainment channel, &TV, is down 13 per cent to Rs 339 from its highs in January, when the new channel was launched. While analysts believe there could be pressure on profitability, Zee expects to maintain it at the level of FY15, when margins came in at 25.7 per cent.

The company, according to analysts, expects to gain market share at the network level, helped by channel launch and increase in original programming hours. Faster revenue growth (from the estimated 15 per cent) would come about if the phase III and phase IV of the digitisation process is completed before schedule. Analysts at CLSA say the stock corrected on concerns of initial losses in the new channel launch but the worst seems to be behind and digitisation of cable should help growth.

However, not all analysts are so sanguine about the company’s ability to improve margins in FY16. Analysts at Antique Stock Broking say while &TV has made a credible start with a four per cent share according to TAM Media Research, it has to double its rating share from here on to achieve breakeven without significantly cannibalising Zee TV’s ratings.

Further, subscription growth prospects have been pushed back due to delay in Phase III DAS (digital addressable system) rollout to December 2015, which means monetisation is unlikely to happen in FY17. Antique’s analysts expect Ebit margins to come off by 200 basis points in the current financial year before rebounding in FY17.

ALSO READ: Zee Entertainment Enterprises Q4 PAT up 7% at Rs 232 cr

There, however, are means to offset the pressure. Analysts at IIFL say margins are set to expand to 30-35 per cent, as losses of the new GEC subside. Ad revenue growth dipped to 12 per cent in FY15, from 20-24 per cent in FY13 and FY14 due to slowdown. This is also expected to revert to 15-20 per cent in the current financial year. About 54 per cent of Zee Entertainment’s revenue in FY15 had come from the advertising. Subscription revenue growth, had been flattish, should also perk up with ongoing digitisation.

At current price, the stock is trading at 26.6 times its FY17 estimates. The company commands a premium to peers, given ad revenue growth over the three years have been significantly ahead of others in the sector. Half of the analysts have a ‘buy’ on the stock. Their consensus target price of Rs 360 indicates limited gain from the current levels. Await further correction to buy, as the long-term story seems intact. Continue reading Zee Entertainment: Near-term margin concerns on network expansion

NDTV plans e-comm ventures in food, auto & gadgets | Business Standard News

NDTV plans e-comm ventures in food, auto & gadgets | Business Standard News.

New Delhi Television (NDTV), the Delhi-based media firm that owns television channels NDTV 24*7 & NDTV India, today told the exchanges that it has plans to enter the bustling e-commerce space and has signed term sheets with potential investors. In a separate disclosure it also added that Genpact founder Pramod Bhasin, who is an independent director, will step down as he plans to join one of the media firm’s ventures.

The disclosure said, Bhasin “is contemplating entering into certain ventures with the Company and accordingly he has stepped down as an Independent Director of the Company. He will however continue to remain Non-executive Director of the Company.”

Soon after the Bhasin filing, the firm, which has faces a Rs 2 crore Sebi penalty for inadequate disclosures said in a separate filing: “With reference to the earlier letter dated March 23, 2015 wherein the Company had informed that the Board of Directors of the Company had accorded in principle approval for setting up of online ventures including digital transactions, New Delhi Television Ltd has now informed BSE that “the Company and NDTV Convergence Limited (NDTV Convergence), a subsidiary of the Company, have signed preliminary, non-binding term sheets with certain potential investors for e-commerce ventures in the field of food, auto and gadgets (Proposed Transactions).”

The firm promoted by veteran journalist Prannoy Roy and his wife Radhika Roy added, “Further, the term sheets are non-binding and are subject to the parties agreeing upon and executing the definitive agreements which will include detailed terms and conditions in relation to the Proposed Transactions.” The Proposed Transactions will be subject to various conditions precedent to be specified in the definitive agreements including due diligence, receipt of requisite corporate authorisations/ approvals and regulatory approvals.

“However, as a matter of good corporate governance practice, this is being disclosed to you and the public shareholders. In the event the discussions between the contracting parties in relation to the Proposed Transactions are successful and definitive agreements are executed, we shall accordingly update you,” the filing said.

If required, the Company and NDTV Convergence will seek their respective shareholders’ approval for amending their respective memorandum of association prior to undertaking the Proposed Transactions, it added.

In 2013, NDTV had launched a fashion portal called indiaroots.com offering ethnic wear. Continue reading NDTV plans e-comm ventures in food, auto & gadgets | Business Standard News