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| Indiantelevision.com's
interview with MGM Networks executive VP Bruce Tuchman |
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'Our
business model in India will be driven by subscription
revenues'
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| Posted
on 16 September 2008 |
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The
English movie channel genre will have a new aggressive player
in MGM. After making the channel available on Dish TV, the
largest direct-to-home operator in India, MGM Studios has
inked a five-year distribution deal with Star Den. The aim
is to make the channel widely available across cable TV networks,
DTH and IPTV platforms.
MGM
is looking at subscription revenues and will be advertising-free
- at least for the time being. The channel is priced at Rs
6 for the cable TV market and Rs 3 for DTH.
In
an interview with Indiantelevision.com's
Ashwin
Pinto,
MGM Networks executive VP Bruce Tuchman talks about the expansion
plans for the channel in India and other markets.
Excerpts:
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Why did it take MGM so long to enter the Indian market?
We have participated in India before through our licensing
deals with Zee and Sony. We learnt a lot from that. India
is a growing market and offers huge opportunities. We decided
to come with a 100 per cent ownership so that we could control
our destiny.
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Didn't you realise the opportunity a bit too late as channels
have to now contend with carriage fees not just on cable but
on DTH as well?
Some channels started operating in this market more than
10 years back. That may have been good. But it is also a great
time now with digitalisation growing. India is also on a high-growth
story.
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Why did MGM choose Star Den for distribution?
We did our first deal with Dish TV independently. That
will stay as it is. But getting meaningful and broader penetration
would have been a real challenge if we were to do it ourselves.
We decided on Star Den as they have a strong bouquet of channels.
We have good Hollywood content and have a library of 4100
films. Star Den will represent us on cable TV, DTH and IPTV
platforms.
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Will carriage fee not hurt the business in a genre that is
not growing too fast?
We do not plan to pay carriage. We have a brand and a
track record that stands out. This puts us in a good position
to occupy a lot of capacity without paying carriage.
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Would
you look at presence on analogue cable and still not pay carriage?
We are looking for as much distribution as possible. The
subscription base is large and it will provide an attractive
revenue base. Our business model here will be driven by subscription
revenues.
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'Our
TG would be people who are interested in Hollywood movies
and who have a connection with the MGM brand. We are
not a channel that showcases blockbusters'
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Will MGM carry advertising?
Not for now. Globally we have advertising on some feeds.
However our dominant source of revenue is subscription. Models
will evolve and adapt though. We don't know what we will do
here in the future.
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In a genre that already has established players like HBO
and Star Movies, what value does MGM bring to the table?
We are the MGM brand. We have a deep connection with the
glamour and aura of Hollywood. We do things like having celebrity
testimonials, going behind the scenes of films, etc.
Besides, digitalisation offers room for many players. In India
there are tens of millions of people who want to watch Hollywood
films. In the US there are scores of film channels and not
just five or six. Consumers want this kind of choice. It is
key to have a brand that people stick to and trust.
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Could you offer an overview of the programming strategy?
We will handpick titles from our huge library. We do a
lot of stunting. We do thematic programming nights. In the
evenings, we focus on genres like comedy, action. We also
focus on key stars and we try to be flexible and creative
with what we do.
Our
channel caters to people who want to expose themselves to
sophisticated and eclectic film choices. We are not looking
to just get attention through new releases. While there is
a value to that, people often watch that film and then forget
about it. Our library is classic and modern. We have films
from different eras.
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Will your core target audience be more elderly skewed?
Our TG would be people who are interested in Hollywood
movies and who have a connection with the MGM brand that is
glamorous and well known. We are not a channel that showcases
blockbusters that one soon forgets about. Our aim is to show
films that define an era. Films that will be shown over the
coming year include Woody Allen's classic Manhattan, Network,
A Passage to India, Midnight Cowboy, The Pink Panther Strikes
Again and Mystic Pizza.
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Does MGM acquire movies from other studios to show on the
channel?
The MGM library is so large that it can be programmed
forever in a manner of speaking. We are doing The Hobbit.
We also have Bond films and the Pink Panther franchise. New
movies are being made here. We also have the Rocky films.
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Would you look at a dubbed feed to expand penetration in India?
We are in English at the moment. If we expand deeply and
there is consumer demand for it, I would not rule it out.
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What kind of marketing activities are being planned?
We have just entered into a distribution arrangement with
Star Den. We have to sit down and figure out how we are to
promote the channel. It could be through television, print
etc. We will also do events.
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How
has MGM gone about strengthening its worldwide TV distribution
business?
We are growing well. We keep adding new countries. Three
weeks back, we announced that we had a great summer across
Central and Eastern Europe. Just to give you a frame of reference,
in 2002 we had no branded channel presence in Europe. Now
we are in over 30 European countries. In June we launched
in Italy on Sky Italia.
In
Asia we did not have a presence five years back. Now we are
in most countries in Asia. We have three channels in South
Korea. We are also present in Singapore, Malaysia, Vietnam
and Indonesia, among other countries. Our aim is to be as
widespread as possible. We will keep an aggressive pace of
development.
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Outside
the US, which are your key markets?
We have penetrated Western Europe nicely. Italy, Spain,
Germany are key markets.
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In
the US, MGM has tied up with Comcast for an action-oriented
VoD offering. How did this deal come about?
There is big demand in the US for on demand content. Comcast
is a leader in this space. It was a god idea and launched
with fanfare. In Germany, the MGM channel is being distributed
on the mobile. We want to get our content delivered across
all forms of distribution.
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How
has MGM stayed as an independent firm even after Sony took
a 20 per cent stake in the company?
A couple of years back, people were asking whether MGM
was independent. We have clarified that MGM is a vibrant and
independent entity. We were also innovative in our approach.
We came up with an innovative partnership with Tom Cruise.
We brought him in as a partner owner of United Artists. We
are co-producing The Hobbit.
We
are also embracing new media. We are featured on itunes. We
do not just have a legacy but are also vibrant and look to
the future.
Pic
by Mitesh Bhuvad
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