| Indiantelevision.com's
interview with ESPN Managing Director R C Venkateish |
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"We'd
like to be a sports incubator"
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| Posted
on 2 April 2004 |
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Taking
over at a time when issues like the conditional access loomed large
over the pay channels' horizon and Sony Entertainment's tom-tomming
over the cricket World Cup success was continuing, can never be
easy for any country head. Especially if the person happened to
be heading ESPN Software Pvt. Ltd. India, a major sports broadcaster
in the Asian region, which also has an ongoing joint venture with
Star Sports.
But
the 40-something RC Venkateish has easily, and very quietly too,
donned the mantle of managing director of ESPN India last year.
Not given to flamboyance, unlike some others of his ilk, Venkateish
has rather deliberately kept a low profile, apart from stray run-ins
with the media.
But
what may be helping Venkateish in projecting a certain profile,
rather continuing with it, is that his two predecessors, former
bureaucrat RK Singh and Manu Sawhney, too were not really the darling
of the media --- some exceptions, notwithstanding --- where interviews
and other news stories were concerned.
Venkateish
heads the management of the company, which oversees the distribution,
sales and marketing for the two network services, ESPN and STAR
Sports, for the South Asia region covering India, Bangladesh, Sri
Lanka, Nepal and Maldives.
Prior
to this assignment, Venkateish has worked in senior management positions
with leading companies like Kellogg Japan, Kellogg India, the Gillette
Co., Oral-B Laboratories and Nestle India. Venkateish is credited
with turning around a long ailing business of Kellogg India and
building a platform for its sustained future growth, developing
the Oral-B brand from scratch in India to building it into a strong,
premium and profitable franchise. While working with Nestle, Venktaeish
was responsible for moving Nestle to a position of leadership in
the coffee market. He started his professional career as a management
trainee with SmithKline Beecham India.
A PG degree holder in management from the Indian Institute of Management,
Kolkata and a Bachelor in Technology degree from Indian Institute
of Technology, Chennai, Venkateish enjoys reading and playing golf
and tennis, two games that are quite high on the agenda of the company
that he now heads in India.
In
this interview at ESPN's Delhi office, indiantelevision.com attempts
to understand the mind of the person who would be responsible for
charting the future roadmap of ESPN India and also ESS over the
next few years.
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How would you describe the last one year when cricket ruled the
roost and Sony does not let go of a chance to mention it has quality
properties?
It has been an action packed year and I think things have shaped
up quite fine for us both from the cricket perspective and also
the broadcasting perspective. Though, I must admit that the issue
of CAS is something that needs to be watched.
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What
are the new initiatives that are being undertaken?
We are constantly in the process of innovating and introducing
new things as far as our programming goes. Take, for example, the
Samsung match zone. It's a property that has tremendous opportunities,
which also connects with the viewers. Though we have to manage a
huge database for this, apart from doing lot of backend work, but
the toil is worth it.
Then,
recently we announced the hockey initiative in association with
the Indian Hockey Federation. This particular plan would go into
building a property that we would be all proud of. Not only it aims
at reviving the game of hockey, but also try wooing back viewers
and spectators to the game. The domestic part of the game needs
to be strengthened that would help in throwing up newer stars.
In
a small way we have also been involved with the IFA Shield (football),
but hockey is certainly a big initiative. The whole idea behind
such moves is that we would like to really work as an
incubator and help in the development of various sports.
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Which
other sports is being looked at by ESPN for
incubation ?
Ideally, we'd like to take up many other sports, which have not
managed to survive the cricket onslaught. Since we have picked on
hockey first, we'd like to execute it well before taking on other
sports.
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Are
initiatives like `sports incubation' being taken up by ESPN because
neither it nor Star Sports has hot cricketing properties?
I don't think that observation, or presumption, is correct. We have
a fairly good market share and also where cricket is concerned we
have enough properties.Rather we have more cricketing days than
anybody else. There are more cricketing properties coming up that
we'd bid for, including the Sri Lankan and the BCCI-organized Indian
cricket.
We
are not pressing ahead with any sports at the expense of others.
In general we want to promote all sorts of sports. Formula One races
have become popular in India because of our marketing efforts. What
we are trying to do is to make ESPN a broadbased sports channel
and not concentrate on few sports or events.
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How
would you view the competition, especially keeping in mind that
Sony Entertainment TV India turned out a successful cricket World
Cup?
As a sports channel we are the No. 1 sports channel despite
the fact that Sony has the World Cup and ICC cricket and Ten Sports
has some interesting properties. That is proof enough that a few
sporting events here or there going to competition would not make
much difference to us.
Let us take, for instance, the last cricket World Cup. Despite the
cricket extravaganza our business grew during that period and the
viewing public seems to have really understood the value behind
the channel.
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Considering
the business grew even when hot cricket properties were not with
ESPN, what is the strategy forward?
Broadly, it's a two-pronged strategy where we try to increase
our coverage of live events and then weave a series of programming
around such events.We do have some interesting clutch of events
relevant to Indian viewers around which we are planning to introduce
some new programming like a new format
school quiz. Then, the element of interactivity would be increased
in Sports Centre to involve the viewer more.
Basically,
our endeavour is to maximise the viewership base through a gameplan
that would give the viewer live events as well as other sports related
programming that need not necessarily be live.
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"Formula
One races have become popular in India because of our marketing
efforts"
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What sort of programming that is being developed by the channel
to supplement the live coverage?
Some of them are in the conceptualization stage, but I can say
this much that they are very interesting. We do plan to unveil some
of them soon over the next few months.
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How
about a hint of things to come?
All that I can say at this moment is that they are not shows as
people understand. Some of the programmes would dwell on developmental
sports.
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Would
the channel outsource programming or do it in-house considering
there would be an increase in the TV software being generated?
We prefer to rely more on in-house talent to do the production work.
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There have been reports in the international media that ESPN is
weighing the option of introducing some additional channels in the
region. Your comments.
The potential always exists. But nothing concrete that I know of
is taking place at the moment. Such things would depend on many
factors like how CAS evolves, whether distribution problems get
ironed out or not (with cable ops) and how the regulatory environment
evolves.
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How about having a sports news channel in this region?
We have debated it also internally at times. But at the moment I
would dub such talks as premature as, we feel, the Indian market
is not yet ripe for such a property.
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Why do you say so?
For a full-fledged sports news channel, like some in the US, the
relevant market must have enough sporting events round the year
about which the viewers and the public, in general, would like to
have information. For example, in the US there is a huge number
of people who would be interested in the game of baseball and other
news and information relating to the game. To have a sports news
channel is feasible in a country and market like the US. But in
India it would take some time for such a thing to develop as the
volumes are driven mostly by cricket and there too the activity
is not happening really all the year round. May be in 5-7 years
times, 24-hour sports news channel becomes a viable proposition.
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"May
be in 5-7 years times, 24-hour sports news channel becomes
a viable proposition"
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What sort of programming budget does ESPN have?
I cannot give you numbers, but you see the programming cost
may vary and fluctuate quite a bit depending on the sort of programming
that is being generated. Live events come at a huge cost and the
cost of programming on a sports channel would be 50-100 per cent
more expensive than a normal TV
programme.
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By
what percentage the acquisition cost would have gone up between
2000 and 2004?
That number would have gone up easily between 200-250 per cent.
But the big question is: how long can the market sustain such escalation?
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So,
what is your take on the query posed by you?
This rise has to plateau off, otherwise it would become very
difficult to have a balance between cost and revenue.
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How
is ESPN and ESS maintaining the balance, if at all they are evenly
balanced?
Again, I cannot talk about exact numbers, but the business has
been good and the income has exceeded the target.
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With
the Reserve Bank of India having relaxed norms for booking as on TV
channels, especially foreign ones, do you see an upsurge in advertising
revenue from smaller Indian advertisers?
It's certainly a good move and would help us to tap a different
segment of advertisers. However, it'd be difficult to quantify as
of now the increase (in ad sales) as a result of the RBI initiative. |
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What
are some of the main issues relating to the industry that must be
in place to keep the momentum of growth and what role can the government
play?
It is extremely important to have a regulator in place and in
this regard the government could have acted earlier. The Telecom
Regulatory Authority of India (Trai) has kicked off a series of
initiatives, but it is also important that the regulator understands
the ground situation well before moving in with policies, etc. The
regulator should look into the way cable industry functions and
whether there is enough transparency to foster a healthy business
environment.
Moreover,
newer technologies should be looked at now. Otherwise precious time
may get wasted later and that may hinder the second round of growth
in the industry.
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"It
is extremely important to have a regulator in place and in
this regard the government could have acted earlier"
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How serious is the problem of continued face-offs with cable operators
and MSOs ?
I'd say such wrangling do not augur well for the industry as a whole.
There is no competition on the ground and because of monopoly ugly
situations rear up.A transparent system would shift the focus to
expanding the revenue pie, which is not happening now.
Globally,
between 50-75 per cent of the subscription revenue is a broadcaster's
share, but in India, the broadcasters merely get 25 per cent for
stronger channels. The regulator has not approached the whole thing
from the side that cable ops' under-declaration leads to many of
the problems besetting the industry at present.
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What would be your take on the industry scenario two to five years
from now?
The industry has posted tremendous growth and, I think, it'd continue
to do so for some more years. Some newer segments would be opened
up in the broadcast and cable industry as a whole of newer people
jump onto the bandwagon. Such things have happened elsewhere too
with the evolution of an industry and as long s the gravy train
continues rolling in India, people
would like to dip their fingers in the gravy for a scoop.
Moreover, if the economy continues to do well as it's doing now
--- there's no reason why the GDP cannot sustain the present growth
and improve on it --- the industry would see a robust growth.
Though
India lags behind China in terms of viewership, I see the stage
is set for a sustained growth for another decade or so.
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