Financing Options for Indian Entertainment: It's boom time, folks!
The entertainment industry is one of the fastest growing sectors in India, recording a growth rate of 18-20 per cent per annum. Ashok Wadhwa, Managing Director, Ambit Corporate Finance Pte Ltd, played the role of moderator for the session on financing options for the entertainment industry. The attempt was to analyse how investors and the financial community viewed this burgeoning sector, and the various financing options that could be made available.
The entertainment industry is one of the fastest growing sectors in India, recording a growth rate of 18-20 per cent per annum. Ashok Wadhwa, Managing Director, Ambit Corporate Finance Pte Ltd, played the role of moderator for the session on financing options for the entertainment industry. The attempt was to analyse how investors and the financial community viewed this burgeoning sector, and the various financing options that could be made available. .
Rajeev Gupta, Managing Director, Carlyle Asia Investment Advisors Ltd, started the session by bringing out three global trends in the media sector. The first of which was desegregation in media conglomerates, which he said was a trend that was likely to take some shape in the coming days. Several observers saw this as a key to value creation, he contended. Further, media conglomerates both on the TV and Film side preferred to go in for 'the full chain', and the huge presence of full chain conglomerates was testimony to this, he explained. .
Secondly, the Internet was seriously fragmenting the ad pie, particularly for the print media, and this had begun to show. The third trend he cited was that cable companies were trying to vigorously roll out high speed data, trying to work on the path almost like telecom companies. .
"But when you look at the Indian cable industry and cable companies, there doesn't seem to be any step taken towards this opportunity. So, these are three differences and trends between what is happening globally and what is happening in India. Cable is the easiest one to be dealt with. There is a lot of opportunity in this industry as there is yet no competitive response to DTH and maybe CAS is an answer but structural issues have got to be addressed. This industry has to get the structure right before it thinks of attracting serious capital," he said. .
Gupta added, "With print media the key issue is not just multiples, as multiples at some level can be justified if strategy is right and if the industry is moving in the direction that justifies of multiples, and you can see fundamental value creation. Unfortunately such is not the case here. The same is the case with Filmed entertainment and it requires significant structural conformation and till then it is just not ready to absorb capital. There is a serious need for consolidation to happen in this sector." .
There were others like Partner at GW Capital Pvt Ltd, Vikram Narula, who pointed out that there was a growing trend towards investment money going towards companies, which were listed or needed stage-growth capital. So, there is a skew clearly in the private equity side towards well established or already established players, who need growth capital. This was also the area where most of the capital was headed, said Narula. .
Colin Hannaway, Director Media Investment Banking, HSBC (USA) added his perspective, and said, "Europe is five years behind the US in terms of the business model and the lesson to be learnt and looked at is that both in Europe and North America, media companies have deployments of cash, and they are looking to deploy in markets such as India that are growing 18-20 per cent, in the next five to seven years. These two markets are thus driving the trends. With major industry trends in US potentially going to be affecting India at some stage, the most important is that companies, which are looking at deploying cash have cash that they can either return to the share holders or invest in high growth markets. And most of the US companies are opting for the latter to benefit long term." .
Rajesh Jog spoke on the new media, which have invested in India, and listed three companies - Contest2Win, Media Turf and MakeMyTrip. "We have put some money into gaming companies, animation companies and we are looking very seriously at putting together a content fund, which will work all the industry majors. On the animation side, I feel the outsourcing model is not right for India and we are in fact 20 years behind other markets in Asia, which have been doing animation. We need to take a different look at IP driven approach. Whereas, I would say that on the gaming front we are ahead of the curve. India has the competitive advantage mainly because of the technical skills, and we have fairly good chance of becoming world leaders. In terms of console gaming, the price points need to come down." .
In some senses, media and entertainment companies are competing against healthcare and IT. Pure last mile businesses, like exhibition, are other segments where one sees capital infusion. New sectors like radio are seeing good investor confidence too.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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ShareSwapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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