INTERVIEW/R.C. VENKATEISH, MANAGING DIRECTOR, ESPN SOFTWARE INDIA PVT LTD
Is the going tough?
No question there is an impact on the media industry because of the tapering off of economic growth in a short span of time of 4-6 months. Companies have the tendency to cut back on the most visible lines?marketing and advertisement. As far as the sports broadcasting industry is concerned, we are much more insulated than rest. The type of content we have cannot be replicated unlike what you see in the general entertainment sector, where there is excess market supply. Properties like T20 World Cup and soccer world cup cannot be duplicated. Having said that, there is a much harder slog. Our events are bought over 5 year, 10 year, 8 year horizon. These are long-term investments. Do not foresee attrition.
The first edition of CLT20 couldn?t get off the blocks. Market observers say ESPN-STAR was happy with its postponement, as they were not getting a good response from advertisers.
Moving Champions League T20 from December to October doesn?t change business dynamics. The November window is much more superior. It?s Diwali time for advertisers to spend. As far as price is concerned, what we paid for it makes business sense for us... what looks like a big figure now may look like a small figure a few years later. The benchmark keeps shifting. Our revenue stream includes both branding and distribution. We have a solid distribution business.
Many think ESPN-STAR SPORTS overpaid ($975 million for 10 years) for the Champions League rights?
No not at all. Strategic property. Not in the business of bidding for more properties. It makes good biz sense and gives positive returns to shareholders. The total money in cricket depends on the volume of cricket. IPL has increased the market and given it a positive spin. Lot of advertisers are able to make media plans a year ahead since the calendar is in place. There is so much programming in general entertainment space, but cricket assures high TRPs, high reach.
What has been the response of advertisers to T20 World Cup?
The response to T20World Cup has been excellent. Locked in 4 to 5 deals and close to 60 per cent ad sales are already done. It?s a marquee property. All forecasts do call for economic recovery in second half of the year. From the timing perspective, next year should be ok.
Do you see any affect of the slowdown on cricket valuation?
On the one end it did really well. People won't stop watching sports or entertain themselves during tough times. The public was happy to embrace all forms of cricket. People are accepting more volume of cricket. Ratings are not going down which is quite amazing. Test matches these days have 80 per cent results. ODIs, if not clashing with T20s, will give TRPs of six instead of 14, but it?s still higher than general entertainment. But we have to see how this dynamic plays out.
Is the going tough?
No question there is an impact on the media industry because of the tapering off of economic growth in a short span of time of 4-6 months. Companies have the tendency to cut back on the most visible lines?marketing and advertisement. As far as the sports broadcasting industry is concerned, we are much more insulated than rest. The type of content we have cannot be replicated unlike what you see in the general entertainment sector, where there is excess market supply. Properties like T20 World Cup and soccer world cup cannot be duplicated. Having said that, there is a much harder slog. Our events are bought over 5 year, 10 year, 8 year horizon. These are long-term investments. Do not foresee attrition.
The first edition of CLT20 couldn?t get off the blocks. Market observers say ESPN-STAR was happy with its postponement, as they were not getting a good response from advertisers.
Moving Champions League T20 from December to October doesn?t change business dynamics. The November window is much more superior. It?s Diwali time for advertisers to spend. As far as price is concerned, what we paid for it makes business sense for us... what looks like a big figure now may look like a small figure a few years later. The benchmark keeps shifting. Our revenue stream includes both branding and distribution. We have a solid distribution business.
Many think ESPN-STAR SPORTS overpaid ($975 million for 10 years) for the Champions League rights?
No not at all. Strategic property. Not in the business of bidding for more properties. It makes good biz sense and gives positive returns to shareholders. The total money in cricket depends on the volume of cricket. IPL has increased the market and given it a positive spin. Lot of advertisers are able to make media plans a year ahead since the calendar is in place. There is so much programming in general entertainment space, but cricket assures high TRPs, high reach.
What has been the response of advertisers to T20 World Cup?
The response to T20World Cup has been excellent. Locked in 4 to 5 deals and close to 60 per cent ad sales are already done. It?s a marquee property. All forecasts do call for economic recovery in second half of the year. From the timing perspective, next year should be ok.
Do you see any affect of the slowdown on cricket valuation?
On the one end it did really well. People won't stop watching sports or entertain themselves during tough times. The public was happy to embrace all forms of cricket. People are accepting more volume of cricket. Ratings are not going down which is quite amazing. Test matches these days have 80 per cent results. ODIs, if not clashing with T20s, will give TRPs of six instead of 14, but it?s still higher than general entertainment. But we have to see how this dynamic plays out.
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