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Sameer Nair
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According to Nair, the new initiatives planned for 2004, hopefully,
would also fuel revenue collection. “I think that Star India’s revenue
growth would be in double digits; better than the industry average
of about eight per cent,” he adds.
However, Star India would be watching closely the developments
relating to CAS as its implementation (or the lack of it) even in
a limited manner has the potential of affecting the revenue mop
up.
India’s growth is crucial for the Star Group as it is forecasted
that the company is on track for a $40 million FY 2004 profit as
per the September-ended first quarter earnings. Lending a helping
hand would be India and Taiwan, the Hong Kong-based Media Partners
Asia (MPA) said a recent report.
“We estimate that India will continue to generate the bulk of cash
flow and fund losses at Star’s emerging operation in tightly regulated
China,” the MPA reports pointed out.
It is no wonder that Nair is all pepped up about 2004. Though he
is hesitant in detailing the whole game plan, Nair does provide
a sneak preview.
Growing the subscription household base to 14 million is a tall
order, especially in a country like India where under-declaration
is rampant (Star India only gets paid subscription money for 10
million-odd cable and satellite homes out of the total 40 million
homes), but Nair feels that the distribution activities have to
be aggressive.
“It’s a tall order, but the job has to be done. If 2003 was the
year of transparency when we increased the base on the back of packages
offered to the cable operators, the momentum has to be maintained
and then stepped up,” Nair says.
Where the programming strategy is concerned, Star India wants to
try out new things because, according to Nair, it has been confirmed
that people “watch programmes and not channels.”
To ring in a new approach to programming, Star would not fight
shy of retiring even existing successful shows to be replaced by
fresh ones.
“We have discussed the programming strategy within the company
in detail and feel that we must do some new stuff even if it means
giving current successful shows a rest on the flagship channel,
Star Plus,” Nair explains, adding that such a move would help in
bring in variety.
Pointing out that the continued dominance of Star Plus for the
last several years is a comforting as well as a disturbing feeling
(it can make one complacent as the toppled from No. 1 position Hindustan
Times would vouch for), Nair says Star Plus would not like to
suddenly wake up one morning to see somebody else has usurped the
top slot.
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A still from 'Krisshna
Arjun'
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So, some weekly and 30-minutes shows though doing well - like Krisshna
Arjun, for instance - on Star Plus would have to make way for
newer programming like a high-end detective series on the lines
of Sherlock Holmes, some comedy/laugh shows and reality fare like
Pop Idol.
“We are working on a project to bring to viewers of Star Plus an
intellectual and classy detective series,” Nair says, hinting that
such a show would be geared to bring in more male eyeballs. The
new programming for 2004 will start airing by February end.
After making a success of Star Vijay, a Tamil language channel,
Star India now wants to replicate the story with other languages
too. A Telugu channel in the offing?
A cautious Nair states, “Regional expansion is certainly on the
agenda for the year, but I would say it’s not high on the priority
list.”
As far as ad sales go, Star India has acquired a new software,
customised for it, to do a “better and more scientific airtime inventory
management.” Says Nair, “Airtime is the most perishable commodity
like an airline seat. This software would help us keep a better
track of the inventory, which, in turn, would translate into more
value for our clients and customers.”
What happens if CAS does not get implemented? Would there be some
change in the pricing of the Star channels?
Ruling out changes in the pricing structure of Star pay channels,
Nair says Star India doesn’t really have a specific CAS-related
strategy.
“We actually don’t have a CAS or a non-CAS plan. We continue to
look for transparency (in distribution activities) and we should
get our fair share,” he says.
Now, if that is not confidence on Star’s part, then what is.
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