Vivid: Paid news – innovation is key, not banishment

Paid news is as true as the day; innovation like Medianet is the answer, says Annurag Batra, Chairman & Editor-in-Chief, exchange4media Group

e4m by Annurag Batra
Published: Oct 22, 2012 7:42 PM  | 7 min read
Vivid: Paid news – innovation is key, not banishment

Sometime in the early summers of 2004, when a top-notch, globally recognised Indian sportsman got married to a Delhi girl, there was a clamour among television news channels to be the first among equals to air day-to-day shots of the gala event from the groom’s house in the outskirts of the city and the bride’s residence in the heart of the capital. Sports journalists were despatched to ‘use’ their contacts with the groom to get the first shots. When a channel’s representative approached the bride’s folks, after the initial rebuff, he was categorically told that the footage of the pre-wedding rituals will be available only to the highest bidder.

If this is not paid news, I don’t know what is. However, there is a distinct difference; it being that the media – oft-accused of such practices – was at the giving end.

That was good six years ago, at the height of the ‘those-were-days-my-friend boom time for India. Corporate bottom lines were witnessing a rise like never before as rural demand beginning to head north riding the twin boon of a good monsoon and rising commodity prices. An expectant and buoyant world economy leading to a rise in export growth and increase in outsourcing of business processes to India further helped further. Year-on-year real GDP growth in 2004 was to rise to 8.1 per cent as against 6.1 per cent the previous year.

The year 2004 was also a year for the media to make hay while the sun was shining bright. With revised uplinking norms, channels – particularly the TV news kinds – had their hands full, what with a full-scale ratings war on, poaching under broad arch lights, and a plethora of news. There was no dearth of footage-worthy news too – from the general elections, to Sonia Gandhi's refusal to become the PM, high drama over the infamous Telgi fake stamp to natural disaster – the likes of Aaj Tak, NDTV India, Zee News, NDTV 24x7 and Sahara Samay were too busy dishing out news round the clock to their viewers. In the midst of the action, the Times Group announced its big foray into the Indian glamour and entertainment Bollywood-centric television channel Zoom.

The print media too had a share of the pie. The biggest news of the year was perhaps HT Media Ltd becoming a listed company. As if bonuses for its readership, Hindustan Times followed up by entering into the Mumbai market with a new design and content mix under Micheal Keegan of The Washington Post re-design fame and launching HTNext, a compact especially for the school-going audience. 2004 was also a benchmark year for the 50-odd year old Hindi daily Dainik Bhaskar, its circulation figures rising more that more than 1000 per cent to 3.5 million in six states. The same year The Asian Age began publishing The International Herald Tribune in India, and became a publishing partner of The New York Times.

There was anticipation of more in print media that year for the word was out that an about-to-be launched broadsheet, name unknown till then, was on a hunting to populate its bureaus, desks and administrative cabins across the country, while the Times of India selectively began acquiring small but local giants. About a year later in July 2005, the Daily News and Analysis (DNA) was launched, while ToI came out with Mumbai Mirror, Bangalore Mirror, Pune Mirror and Ahmedabad Mirror in quick succession.

Is it that the humdrum made the government maintain an understanding silence then, given that the never-before-seen growing clout and influence of the media often did give rise to paid news like the case of the sportsman’s marriage mentioned above?

In October 2011, Election Commission disqualified sitting MLA Umlesh Yadav of Bisauli in UP for paying Dainik Jagran and Amar Ujala to carry advertisements dressed up as news during the 2007 election campaign. Why is it that only after the EC action, paid news becomes an issue, so much so that even I&B minister Amibika Soni admits it has assumed corporate and political dimensions and needs to be “nipped in the bud (else) it will seriously harm democracy and society as a whole”?

The fate of another paid news case against former Maharashtra Chief Minister Ashok Chavan, politically far stronger than Umlesh Yadav, is still to be decide as the “inquiry has to proceed further to give all reasonable opportunities to the parties concerned to prove or disprove their respective claims and cases”. Further, the Commission has further said that in the Chavan case, the allegations made by the complainants with regard to publication of ‘paid news’ by the respondent are denied not merely by the respondent (Chavan) but also by the newspapers.

Where am I heading to? What am I trying to do taking you through a sportsman marriage, giving you the good old days of ’04, referring to the Hon’ble Election Commission of India’s actions and pointing out a Hon’ble Union Minister’s concerns?

I am simply saying that paid news is as true as the day. In this land of ‘jugaad’, where even farm equipment becomes the very heart of an all-important transportation system in rural India, the face of majority Bharat, write as much as you can, voice as much as you can, paid news will be there, in some shape or other. We might think of it as a systemic cancer – it is! – eating into the credibility of honest journalism.

I wish Harry Potter’s wand to vanish it forever; if you do so too, you’ll also have to do away all the gifts journalists will get this Diwali, the junkets and FAM trips they are taken on, the cups, calendars, mementos, souvenirs, pens, scratch pads, etcetera given to them at press conferences, even the  working meal they are invited to. Who is going to gauge what’s the right and wrong give-away in this society where turning away a gift is considered rude, insulting, not a done-thing? I know of an organisation where they play Secret Santa every Christmas. However, there’s a catch. No staff member is allowed to buy a gift for more than Rs 150. Do you think it is possible to lay down such rules for the Press Council of India?

An editorial written by Satyajit Usham in the Manipuri daily Hueiyen Lanpao gives us further insight into ‘paid news’. He writes that “for the fledging media in Manipur to remain unsullied and the media persons stick to their professional calling, a deep soul-searching and constant reality check is essential, especially, now that the officials of Agriculture Department have been ‘formally’ accused of giving money to reporters for coverage of their field visits”. The point being here is that paid news is a practice among the foot soldiers too and not just a manifestation at organisational levels.

Is that then a lost battle? Is the situation akin to ‘bakhsheesh’ becoming rapacious corruption?

A model like Medianet from the Times Group could just be the answer. Prophesying “to have been primarily instituted to create filters to sift good from bad and reliable from unreliable”, the innovation aims to foster transparency. “When the reader sees an article being credited as a Medianet promo, he knows that is exactly what it is. There is no question of him being served a PR piece masquerading as a genuine article – which so many of those pointing fingers at us routinely indulge in,” it says.

As PM Manmohan Singh says, “it is true that sometimes irresponsible journalism can have serious consequences for social harmony and public order, which the public authorities have an obligation to maintain, but censorship is no answer.”  Perhaps then, innovations like Medianet hold the key. Time for the competition to follow and put paid news where it should stay and not be splattered all over the pages.

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HT Media posts Consolidated Total Revenue of Rs 580 crore in Q2

Chairperson and Editorial Director Shobhana Bhartia says due to lower commodity prices and control on costs there has been an improvement in operating profit

e4m by exchange4media Staff
Published: Nov 5, 2019 7:28 AM  | 1 min read
HT Media

HT Media has posted a Consolidated Total Revenue for Q2, 2020 at Rs 580 crore.

As per a statement released by the company, EBITDA for Q2’20 increased by 139%, and margins at 14% vis-à-vis 6% in previous year. This has been driven by softening of newsprint prices and continued focus on cost.

The Net Cash position at a consolidated level continues to be strong.

The Print ad revenue has declined due to sluggish volumes, even as yields have improved. National advertising continues to be soft, although local advertising witnessed growth.

Savings in raw material costs have driven improvement in EBITDA margins.

Chairperson and Editorial Director Shobhana Bhartia said, “Slowing economic growth has hit advertising spends in key categories, putting pressure on revenues across the media industry. As a result, our Print and Radio (on like to like basis) businesses saw revenues dip as compared to a year-ago. However, thanks to lower commodity prices and a tight control on costs, we saw an improvement in our operating profit. On the digital front, Shine, our online recruitment portal has shown good progress and continues to grow. Our outlook for the coming quarter remains cautious, given overall economic sentiment and macroeconomic trends. Cost-control and falling commodity prices should help protect our margins.”

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ABP Group posts Rs 15.70 crore as net profit in Q1 FY20

The group’s total operating income stands at Rs 365.55 crore

e4m by exchange4media Staff
Published: Nov 4, 2019 5:41 PM  | 1 min read
ABP

ABP Group has posted a net profit of Rs 15.70 crore in the first quarter of FY20, as per media reports.

The group’s total operating income stands at Rs 365.55 crore.

It’s net profit for the fiscal ended March 31, 2019, was down 68% to Rs 31.90 crore compared to the previous fiscal.

The Profit Before Interest Lease Depreciation and Tax (PBILDT) has also dropped 53.52% to Rs 107.12 crore.

The group has six news channels - ABP News (Hindi), ABP Ananda (Bengali) ABP Majha (Marathi) and ABP Asmita (Gujarati), ABP Sanjha (Punjabi) and ABP Ganga (Hindi).

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Zee Media posts consolidated revenue of Rs 137.03 crore for Q2 FY20

ZMCL has recorded 4.4% growth in operating revenue for first half of FY20

e4m by exchange4media Staff
Published: Oct 24, 2019 9:19 AM  | 1 min read
ZMCL

Zee Media Corporation Ltd (ZMCL) has posted a 4.4 per cent growth in operating revenue to Rs 337.6 crore in the first half of FY20, as per media reports.

It has reported a consolidated revenue of Rs 137.03 crore for Q2 FY20.

In a statement, ZMCL has said: “During the quarter, the network expanded its footprint s into Southern India through the launch of Zee Hindustan in Tamil and Telugu languages. This is intended to make the network's content accessible to wider audience.”

The operating expenditure in Q2FY20 has dropped by 21.7 per cent.

The statement further said: “EBITDA for HlFY20 improved by 34.1 per cent to Rs 1,029 million from Rs 767.5 million EBITDA for H1FY19, while the same declined by 9.4 per cent to Rs 370.2 million from Rs 408.7 million for the corresponding period last financial year. EBITDA Margin grew from 23.7 per cent in H1FY19 to 30.5 per cent in HlFY20, while growing from 24.2 per cent in Q2FY19 to 27 per cent in Q2FY20.”

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No slowdown here: In-cinema ad rates up by at least 50% for 3 big Diwali releases

Housefull 4, Made In China and Saand Ki Aankh ready to hit the silver screen this week, with the hopes of giving brands the eyeballs they look for in theatres

e4m by Moumita Bhattacharjee
Published: Oct 24, 2019 8:41 AM  | 4 min read
DiwaliFilms

It’s that time of the year again when theatres gear up to pocket maximum gains. Diwali is here and there are three films ready to hit the silver screen this week--Housefull 4, Made In China and Saand Ki Aankh. The festive period brings much joy to exhibitors, distributors and theatre owners because it ensures footfalls, giving brands the eyeballs they look for. In fact, industry experts don’t feel that economic slowdown this year has impacted in-cinema advertising. While they are concerned about three movies clashing during Diwali, they predict 50-100 per cent rise in ad rates during this period. 

Advertising moolah

Mohan Umrotkar, CEO, Carnival Cinemas, is expecting 60-70 per cent surge in advertisement topline compared to last year. “Going by the buzz and advance booking for these three releases, market is bullish. Advertisers have blocked most of the advt-slots during the festival period. Housefull 4, Made In China and Saand Ki Aankh all combined together should generate around Rs 350 crore topline at the box office during the festival week. We are expecting 60-70 per cent surge in the advertisement topline from last year. Also, this year we have added around 14 per cent new advertisers, and 4 per cent of them are first-time cinema advertisers,” he says.

But according to Siddharth Bhardwaj, Chief Marketing Officer - Head of Enterprise Sales, UFO Moviez, things have changed a lot in the last couple of years. “Since some films have not really lived up to their expectation, advertisers are spreading the spends all through the year. They are picking up far more number of titles in the year rather than focusing only on Diwali or Eid.”

“It is good for the industry because you can monetise the inventories beyond just big weeks. A lot of content- driven films have come up which has given us the opportunity to monetise more markets. It has put lesser pressure on Diwali. Most of the cinemas are sold out for Diwali. It becomes difficult to accommodate everything,” Bharadwaj opines. He also reveals that for this week, the inventories are already full.

Diwali ad rates

Experts reveal that ad rates differ from property to property and depends on location as well. But Diwali surely sees a massive hike in rates. This year, theatre owners are expecting 100 per cent rise in ad rates. While Umrotkar revealed that for Diwali, they are charging 100 per cent higher than the regular card rates, Girish Johar, trade analyst and film producer, shared that even the rates for putting up kiosks of brands go up during festivals like Diwali.

“It’s based on property. On a ballpark, ad rates double up. So if you are putting up a kiosk, they charge say Rs 50,000-25,000 for a month. During Diwali, they charge almost double because of the kind of footfalls theatres witness,” Johar revealed.

Economic slowdown? Not for Cinema!

This year, brands have been pulling back their spends on other mediums due to economic slowdown, but cinema seems unaffected. Calling entertainment business recession-proof, Johar explains, “If you see the other side, box office is up by 15-20 per cent. Yes, it is a bit subdued because the brands are in a wait-and- watch scenario. They are increasing their focus around consumption rather than awareness.”

Bharadwaj too seconded it by saying, “These are challenging times but our medium is very efficient. If you see economy has slowed down, but the cinema has grown instead.”

Clash cover

Three movies are clashing this Diwali which means shared screens and box office gains.

“It’s never good for us when two or more big-ticket films release together. If they would have come on different dates, there are chances that more advertisers will take advt. inventory in those weeks separately instead of that one particular week,” shares Umrotkar.

 

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INOX Leisure Ltd sees 42% growth in total revenue

Profit After Tax up 327% to Rs 51 crore

e4m by exchange4media Staff
Published: Oct 23, 2019 6:06 PM  | 1 min read
INOX

INOX Leisure Ltd (INOX) has reported financials for the second quarter ending September 2019.

Its total revenue has risen to Rs 524 crore with a 42% growth from Rs 369 crore in the corresponding quarter in FY19. Its EBITDA has more than doubled to Rs 107 crore with a 121% growth, while the PAT stood at an impressive Rs 51 crore, up 327% from previous year’s second quarter.

Siddharth Jain, Director, INOX Group, said: “At INOX, setting new benchmarks is now a routine, thanks to our consistently sharp focus on luxury, service and technology and our uncompromised desire to offer our patrons, nothing but the latest and the best! We are delighted with our remarkable consistency on all parameters, and we are sure about maintaining the momentum and focus on innovativeness. Content once again proved that why we term it as the ‘hero’. Thanks to the creators of such spellbinding movies, which keep inviting our guests to our properties, and allowing us to pamper them with our signature hospitality. With the launch of Megaplex, we are delighted to further our endeavor of developing experience-driven cinema destinations of global standards, and we will continue to do so. On behalf of Team INOX, I assure all our stakeholders that we will continue to break barriers and exceed all expectations.”

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Hathway Cable & Datacom reports 100% subscription collection efficiency in Q2

The broadband subscriber base has increased from the previous quarter’s 840,000 to 860,000

e4m by exchange4media Staff
Published: Oct 18, 2019 11:17 AM  | 1 min read
Hathway

Hathway Cable and Datacom has reported subscription collection efficiency at 100%, and the broadband subscriber base has increased from previous quarter’s 840,000 to 860,000 in quarter ending September, as per media reports.

It has narrowed its consolidated net loss by 74% and the operating EBITDA has been reported 15% up to Rs 107.5 crore compared to Rs 93.1 crore a quarter ago.

The total income has dropped 2%, while the expenditure is down 6%.

In the financial results, the company has said the FTTH markets are leading growth in customer acquisition.

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ZEEL posts 7.4% YoY growth in total revenue for Q2 FY20

ZEEL's domestic advertising revenue has grown 1.4% YoY in Q2FY20

e4m by exchange4media Staff
Published: Oct 18, 2019 7:51 AM  | 2 min read
ZEEL

Zee Entertainment Enterprises Limited (ZEEL) has reported a consolidated revenue of Rs 2,122 crore for the second quarter of FY20, recording a growth of 7.4% on YoY basis.

The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was recorded as Rs 692.9 crore with an EBITDA margin of 32.7%. PAT for the quarter was Rs 413.2 crore. The Profit After Tax (PAT) for the quarter was Rs 413.2 million, with a growth of 6.9% YoY.

During the second quarter, ZEEL’s consolidated advertising revenue grew by 1.2% YoY to Rs 1,224.7 crore. The domestic advertising revenues grew by 1.4% YoY to Rs 1169 crore.

ZEEL has posted 26.8% YoY growth in Q2FY20 domestic subscription revenue. ZEEL’s consolidated subscription revenue grew by 19.0% to Rs 723.5 crore during the quarter.

ZEEL’s total expenditure in Q2FY20 stood at Rs 1429.1 crore, higher by 9.9% YoY compared to Q2FY19.

While ZEE5 recorded a peak DAU (Daily Active User) base of 8.9 million in September 2019, ZEE5 users watched an average of 120 minutes of content on the platform in the same month.
During Q2 FY20, the television network had an all-India viewership share of 18.4%.

During the quarter, ZEEL’s international business revenue was Rs 208.2 crore. The advertising and subscription revenues for international business declined by 4.0% YoY and 21.5% YoY, respectively.

Zee Music Company has registered 7.1 billion views on YouTube in Q2.

Punit Goenka, Managing Director and CEO, ZEEL, said, “I am pleased with the performance we have exhibited during the quarter. Our entertainment portfolio continues to grow from strength to strength across all formats and maintained its leading position. Our television network has emerged stronger post the implementation of tariff order on the back of a strong customer connect and brand pull of its channels. ZEE5 continued to gain traction across audience segments and markets, driven by its compelling content library and expanding list of partnerships across the digital eco-system. This strong operating performance allowed us to deliver industry leading growth in both advertising and subscription despite the tough macro-economic environment. Domestic subscription growth of 27% has reaffirmed the value proposition our television network has built over the years. The impact of tariff order has now largely settled down and has brought increased transparency along with improved monetization. Our domestic advertising revenue growth, though significantly lower than historical trend, is higher than the industry growth. We have witnessed an improvement in ad spends through the quarter and we believe that the onset of festive season along with measures taken by the government will help revive the consumption growth.”

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