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Pratap Bose, CO-FOUNDER, THE SOCIAL STREET
The current deal obviously makes GroupM officially an even stronger entity in Indian media business.
I don’t think it changes much for MediaCom. GroupM has always lev-eraged its control over the agency, now it has statutory powers on top of it. That’s all. If at all, it changes things for Sam Balsara, since his share in the agency (MediaCom) may have gone down. I wouldn’t be surprised if a Madison acquisition is around the corner as well. But then everything is a speculation at this point.
BY RAJIV SINGH DELHI
It was March 1, 1988, the day Kapil Chopra proposed to his girlfriend for marriage. “It was during the screening of Qayamat Se Qayamat Tak in Delhi,” recalls Chopra, fond-
ly slipping into nostalgia. During the movie interval, Chopra went on his knees begging his girlfriend to tie the knot.
Cut to 2017. Chopra plans to celebrate his 29th marriage anniversary by re-living the same moment by watching Qayamat Se Qayamat Tak with his wife, daughters, in-laws and friends. And he wants to do it with some pa-nache: not on his Sony home theatre but at one of the PVRs in Delhi. “That would be a wow moment. In fact, a Vkaao mo-ment,” the 54-year-old burly business-man says bursting into laughter.
PVR Vkaao, a movie-on-demand service by the largest multiplex chain in India, works on a simple model: the viewer picks a film from the library of PVR, selects a time slot and a PVR theatre of her choice. She has to buy 50 seats or get at least the same number of viewers, putting show details on BookMyShow to ensure the screening. And all this at no extra cost!
“There will be no premium pricing,” says Sanjeev Kumar Bijli, joint manag-ing director of PVR. The ticket price would be as per prevailing rates around that day or time, and if the minimum threshold is not met, the money gets refunded.
The move, contends experts, heralds the ‘Uberisation’ of cinema in India.
“It’s an idea whose time has come,” says brand strategist Harish Bijoor. Cinema is the backbone of entertain-ment psyche, especially big screen cinema. If there is now going to be an ability to book a whole show and watch it with friends, or for that matter, all alone, there is a massive opportunity to be tapped, he reckons. The key target
viewers could be either corporates who can explore the option for team-build-ing initiatives, or large kitty groups, or organisations and close-knit communi-ties of every kind, avers Bijoor.
In fact, it was the constant consumer feedback which made the company re-alise the need for such a service.
For instance, a Guwahati resident hankering for an Oscar nominated film, ruing the lack of options. Or a Tamilian in East Delhi missing out on the latest from Tamil superstar Vijay. Or people who want to watch ‘classics’ on the big screen.
“Many want to watch Amitabh Bachchan’s movies on his birthday,” says Kamal Gianchandani, CEO of PVR. As of now, people have 500 movies to choose from. The target is 2,000 by the year-en. Revenues are shared between exhibitor and distributor. Vkaao, main-tains Gianchandani, also provides an excellent platform to small independent filmmakers don’t have big stars and marketing budgets to promote their films. “These guys can now do a very cost efficient release, targeted market-ing and there is no wastage of print cost,” he claims.
Marketing experts reckon that Vkaao is not just tapping into latent consumer demand, but helps exhibitors solve a tricky problem: seat perishability.
“Unoccupied seats amount to rev-enue which is wasted almost all the time,” says Ashita Aggarwal, head of marketing at SP Jain Institute of Management & Research. Vkaao can
help solve this problem by minimising revenue loss from un-occupancy. The minimum threshold of 50 seats, main-tains Aggarwal, very smartly tackles the problem of premiumness and af-fordability. People are ready to pay for a special experience. “Vkaoo can give affordable yet a special experience to people,” she contends.
But can Vkaoo compete with the likes of Netflix and Amazon Prime which are bringing content to screens of all sizes, from mobile to PC to large screen TV? Can it lure millennials away from small screens? Aggarwal feels the compari-son — and all talk of competition — is grossly misplaced as both mediums cater to completely different needs. The experience of watching a movie on a small screen is for fill-in entertain-ment, she avers. Vkaao instead “com-municates taste, status, sharing and the zeal to live ‘big,’ she says.
Another challenge would be to create ample awareness about the concept. “Vkaoo will work if it is branded with panache,” says Bijoor. It is important for PVR to advertise this enough, which means sustained awareness creation among the target segment. Gianchandani, for his part, is bullish about the concept and is willing to go the extra mile. “It’s a first-of-its kind concept in India,” he says, adding that while globally people have been experi-menting in the UK, Australia and the US, these are still the early days. So which movie would he like to Vkaao? “Jaane Bhi do Yaaro,” he says.
Vkaao’s uniqueness lies in trying to bring back the magic of the big screen. But to truly become a blockbuster, it needs to tackle serious challenges: first, a large enough library, with regional and national cinema. The timing and location of screens is another crucial is-sue because, even as big screens contin-ue to fascinate, in a post-Netflix world, entertainment which is present ‘when they want’ and ‘where they want’ may still win the day.
THE CONCEPT TAPS INTO LATENT CONSUMER DEMAND & HELPS EXHIBITORS SOLVE A TRICKY PROBLEM: SEAT PERISHABILITY
The timing is just right, says Nevatia. “If you try to specialise too early, there is a risk of adverse selection since the depth in the industry would not be there in good measure”, he says. Talking of adverse selection, we ask him if Meru, one of the companies that the PE fund has been invested in for long, is one such? Nevatia differs staunchly, “Even today Meru is the only profitable taxi-service whereas Ola and Uber are both losing $30 mn to $40 mn each because they have taken the view that they will burn that capital, expand the market
and at some point, the network will be so large that it will be worthwhile. We cannot see that path, he says.
In evolved markets l ike Nor th America generalist funds are be-coming rare, unlike in the emerging markets where owing to less competi-tion, they’ve been around longer. A scenario that is starting to change across markets. As per Richard Jae, Partner and co-head of Private Equity Practice, Duane Morris in a report com-piled by BackBay Communications, “Competition is intense. Funds have
to distinguish themselves. One way is through specialization, such as health-care, retail/ consumer, telecom and media.” Unless you establish a distinc-tion, you get lost in a pack and become a banana, he adds.
Adds Alpana Parida, managing di-rector, DY Works who has worked on assignments in this space, “with most brands having a serious and conser-vative personality, the opportunity to stand-out is huge.” About the IVFA rebranding, Parida feels, “when you change direction, rebranding is the fastest way to communicate.”
Opines marketing consultant Harish Bijoor, funds change names as holding
patterns change, as old names sound jaded, as old names sound B2B and not B2C enough (and at times just because they want to sound sexy for new em-ployees).
Regarding the specific nomenclature, in his view everyone wants adjectives and power names in them. Therefore, expect words like ‘Rising’ ‘Forward’ Fairwinds’ ‘Roads’ ‘Prime’ and more. Some recent changes: Red Fort Capital is Rising Straits Capital. Reliance Equity Advisers is Fairwinds Asset manager and Fidelity Growth Partners India is not one, but Eight Roads Ventures. Now to see if these new names amount to more than just surface gloss.
MADE IN INDIA 2When you’re getting a big star endorser, the key is to make sure your script sells the brand and not the celebrity — Bharat Puri
Continued from Page 1 >>
Lights, Camera, Vkaao
Will PVR’s movie-on-demand service bring a lapsed audience back to its seats and its screens?
There will be no premium pricing...The ticket
price would be as per prevailing rates around
that day or timeSanjeev Kumar Bijli,
joint managing director of PVR
BY TEAM BE | MUMBAI
The announcement of GroupM acquiring a majority stake in MediaCom India has revived old rumours. But first, let’s get some facts straight: MediaCom India is a joint venture between WPP’s GroupM and Madison Media’s chairman Sam Balsara. While GroupM hasn’t shared details of the deal, Balsara mentions in a news report that he will continue to own 26% of the agency.
Another fun fact: Madison Media recently signed a deal with Mediacom Bangladesh which allows the latter access to Madison’s software and tools. Now, don’t confuse Bangladesh’s industrial conglomerate Square Group’s Mediacom with WPP’s media buying-planning agency. Those are two separate enti-ties. GroupM’s MediaCom operates under the name of MBA in Bangladesh, we hear.
And now for the rumours: The grapevine suggests the deal hap-pened a couple of years too late and at a lesser valuation than what should have been the ideal case. Buried rumours of Balsara plan-ning to sell Madison Media to a suitor (read: WPP) have resur-faced as well. But these are admittedly speculations. The kind that normally fetch “no comments” or “denial” from all parties concerned. Let’s see what some of the neutral elements have to say about them:
Stakes & Ladders What does the GroupM-MediaCom
deal mean for Madison?
(From L to R)Shireesh Joshi, head - Strategic Marketing Group, Godrej IndustriesRajiv Mitra, managing director, Govind Milk & Milk ProductsThomas Xavier, solopreneur at Transformer, a creative brand advisory, ex-chairman & national creative director, Orchard Advertising (a Leo Burnett India agency)Sandip Tarkas, independent consultant, ex-CEO – Sports, Media & Special Projects, Future Group
SIDETAKE
Greg Paull, CO-FOUNDER AND PRINCIPAL, R3
This would give GroupM India a higher share than anywhere else in the world, making it a challenge for those on the wrong side of it. For the competi-tors, there will be an ever increasing need to strive harder for innovation and cre-ativity - as the “clout” strategy they use in other markets won’t play well in India. It was always an odd deal with Madison, predicated on some legacy P&G business. Going forward, it completes a crucial gap in the global MediaCom puzzle.
Meenakshi Menon, CHAIRPERSON, SPATIAL ACCESS
It is only logi-cal that soon Madison too will be brought into the GroupM fold, unless there’s some knight in shining armour to change the way things are going right now. Otherwise it is a forgone conclusion and the likes of Diwan Arun Nanda or Sam Balsara are learning or have learned by now that you can’t be in bed with an elephant without expecting to be squashed at some point.
Knowledge Series BRAND EQUITY Times Ahead
IVFA: ‘THE BRAND STARTED ...’
ETBRANDEQUITY
Dentsu Aegis Network and the Times Centre for Learning, under its brand TimesPro, are collaborating to offer a Post Graduate Diploma in Digital Marketing. Available in Bengaluru,
Mumbai and Delhi, the three-month full-time programme focuses on the strategic and practical aspects of digi-tal marketing.
The course is open to graduates – stu-dents and entry level professionals looking to give their careers a digital boost. They will have access to 450
hours of instructor-led training, im-mersions and e-learning. The domain expertise of the Dentsu Aegis Network, which includes digital specialists like Isobar, WatConsult, iProspect and Dentsu Webchutney among others will be leveraged for the course, with a teaching staff chosen from these agencies. Each component will be ad-
dressed by a rel-evant industry ex-pert. A key feature is the ‘immersion program’, which allows student to explore the intri-cacies of a par-ticular aspect of digital marketing. They will also get practical hand’s on experience on i m p l e m e n t i n g digital marketing campaigns.
Ashish Bhasin, c h a i r m a n a n d
CEO Sout h A sia, Dentsu Aeg is Network says, “Digital marketing is the fastest growing part of the adver-tising and marketing. We have col-laborated with TimesPro to curate a
robust curriculum relevant to the cur-rent trends. We hope thousands will benefit from this.”
Adds Anish Srikrishna, president - Times Centre for Learning Ltd (TCLL), said, “We are glad to be associ-ated with Dentsu Aegis Network, who have conceptualised a course for the next generation professionals. Many companies have started to realise the untapped potential and value propo-sition brought by digital marketing. Through this partnership, we will pro-vide a platform for aspiring students to make a successful career in one of the most lucrative career segments.”
On completion, students will become all-round professional experts in digi-tal marketing with knowledge and in-sights into digital consumer behavior, proficiency in digital marketing tools and analytics. Top candidates can avail of placement opportunities within Dentsu Aegis Network and TCLL as well as a host of leading e-commerce and digital companies in the country.
Admissions are ongoing and to know more visit www.timespro.com/pgddm or call - 1800- 102 -2323. The Times Centre for Learning is part of The Times Group which also publishes The Economic Times
Dentsu Aegis Network and TimesPro OfferPost Graduate Course in Digital Marketing
A KEY FEATURE IS THE ‘IMMERSION PROGRAM’, WHICH ALLOWS STUDENT TO EXPLORE THE INTRICACIES OF A PARTICULAR ASPECT OF DIGITAL MARKETING. THEY WILL ALSO GET PRACTICAL HAND’S ON EXPERIENCE
2THE ECONOMIC TIMES FEBRUARY 01-07, 2017
