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Advertising & Marketing

Initiative, the media services division of Lowe, has managed to bag LG's Rs 70-crore media account in a multi-agency pitch. This comes as a part of the company's decision to periodically review and come up with new communication strategies for its various lines of businesses in the country. As a result of this, the Korean consumer electronics major had recently invited a pitch for its creative advertising too. At the end of the process, LG selected O&M and McCann as the two agencies that would be responsible for its creative communication this year. Similarly, calling for a fresh pitch for its media duties, LG has invited bids from leading media service agencies. Initiative, the incumbent agency also had to make a fresh presentation. Source: Economic Times, Jan.7, 2004

The world

In 2003, three Omnicom networks, TBWA, BBDO and OMD performed outstandingly in tough market conditions. Their success was reflected in an impressive business performance for Omnicom, which reported a 14.7% year-on-year rise in Q3 revenue. As clients exercised caution, there were few global creative reviews. Yet TBWA picked up a $ 100 Million account from Siemens for the global launch of its next-generation mobile phones. Asia's new-business performance was strong: TBWA\Tokyo even took on Japan's advertising titans to land an $ 8.5 million Disney brief. However, BBDO was the world's most awarded network, according to this year's Gunn Report. Philips centralised its global advertising account (estimated $600m) into the DDB network. For Omnicom's main media network, OMD, the global McDonald's win in November was the star on its Christmas tree. Source: Economic Times, Jan.7, 2004

T.V. Media

The Ministry of Communication and Information Technology (MCIT) today notified that broadcasting and cable services were telecommunication services under the Telecom Regulatory Authority of India Act, 1997. TRAI under the chairmanship of Pradeep Baijal will also act as a regulator for broadcasting and cable services. The notification signals the end of a turf war between I&B Ministry and MCIT which began with the introduction of the Convergence Bill two years ago. Now the TRAI has been empowered to recommend measures to facilitate competition and promote efficiency in broadcasting services; ensure compliance of terms and conditions of licence; technical compatibility and effective interconnection between different service providers; regulate arrangements and lay down quality standards for them. For CAS besides regulating the price of channels it will recommend terms and conditions on which the system shall be provided to the customers and also give directions on regulating maximum time for advertisements in pay channels and others. Source: The Indian Express, Jan.10, 2004

The Prasar Bharati is now negotiating with Ten Sports channel, which has acquired the telecast rights for the historic India-Pakistan cricket series. Of the nearly 81.5 million TV homes in the country only 40 million are cable & satellite homes. But most C&S homes do not have access to Ten Sports. Prasar Bharati CEO K.S. Sarma said, "It is unfortunate that most of the country will not be able to see the series as the rights are not with a terrestrial channel." While Ten Sports is clearly in no mood to give telecast rights to Doordarshan, it has agreed to provide a daily one-hour highlight package to the latter. Prasar Bharati now wants rights for deferred telecast for which talks are on. Ten Sports is also helping Prasar Bharati acqire rights for radio commentary. Meanwhile, anticipating a record viewership the channel has increased its subscription rate from Rs 14 to Rs 32. Source: Hindustan Times, Jan.7, 2004

According to Sunil Lulla, Executive vice-president, Sony Entertainment Television (SET), the company has grown by over 35% from April 2003. "That growth began in July and accelerated in September when Jassi was launched. The growth came from some of our strong products such as Kya Haadsa Kya Haqeeqat and weekend movies, but the rocket fuel has been Jassi. Our market share for the 9.30 P.M. slot moved up from 8% to 30%, of which 28% has come from competition," he said. He also stated that in 2004 Sony's focus would be to look at other hours. "Our initiatives will start playing out sometime in March and April. In the last quarter we have been able to strengthen our products such as Devi; and with Koi Dil Mein Hai we also introduced original programming on Sunday." Lulla said that 2004 would have programming that will be younger, frothier and peppier. Source: The Hindu Business Line, Jan.7, 2004

Jaya TV, one of the top four Tamil general entertainment channels, is on course to register a 33% increase in its revenues for 2003-2004 over the previous fiscal, according to a top official of the media house. Jaya TV is likely to finish the financial year (ending March 2004) with revenues of Rs 45-50 crore. The media house had earned over Rs 30 crore during 2002-2003. The TV's success in improving its earnings came despite a not-so-good advertising scene, and was enabled by its strategy to focus on the event-based shows, in addition to strengthening its soaps. The strategy was to create an opportunity for the big advertisers, for which the events came in handy, a company official said. Jaya TV has also taken a "policy decision" to launch a news channel sometime this year though "nothing has been organized" as of now. Source: The Hindu Business Line, Jan.6, 2004

Print Media

The media must maintain a sense of balance and restraint, especially when related to sensitive issues, said A.K. Antony, Chief Minister of Kerala, while addressing a gathering in Thiruvananthapuram to celebrate the 125th anniversary of The Hindu. He emphasised that credibility is the greatest asset of the newspaper. The Hindu has always been a strong supporter of the country's development institutions, he said. V.S. Achuthanandan, Leader of the Opposition in Kerala Legislative Assembly, said the media needed to pay special attention to the issue of disinformation that is increasingly confronting Indian societies. The Editor-in-Chief, Mr N. Ram said that statute changes had become necessary to eliminate the problem of how some "reasonable restrictions" on freedom of speech and expression provided for in Article 19 of the Constitution had been used against the press. Prof. K.N. Panikkar, Vice Chancellor, Sree Sankaracharya University of Sanskrit-Kalady, pointed out that The Hindu has consistently defended the principles of democracy and secularism. Source: The Hindu, Jan.6, 2004

At least two major news magazines are reported to have walked out of the Audit Bureau of Circulation (ABC). The magazines feel that they do not enjoy a level playing field with the newspapers and that their guidelines related to pricing and trade commissions are far more stringent than those applicable to newspapers. "A circular sent by the ABC a few months back proposed restrictions on the value of gifts that magazines offered their subscribers," points out a marketing head of an English weekly. Magazine promoters' major grouse is the clubbing of transportation cost with agent discount as trade commission. Meanwhile, an ABC source says, "The ABC may adopt a completely new model in India, in line with the international norms." ABC will not be placing any restrictions on the extent of commissions and discounts offered by magazines and newspapers. "But the publications will have to acknowledge and report their sales of fully-paid and discounted copies as well as free samples separately," he says. Source: Business Standard, Jan.7, 2004

Tired of being ignored by mainstream media, a village in Orissa has decided to bring out its own newspaper highlighting rural issues. Janavani-literally meaning "people's voice"-is a daily brought out n Oriya that puts the spotlight on problems faced in villages. About 60 residents of Gopinathpur village, on the outskirts of Bhubaneswar, teamed up to launch the newspaper on January 1. It is circulated in over 100 villages. The first edition saw 1,000 copies. Source: Hindustan Times, Jan.5, 2004

Radio Media

"The response to 'Gift A Toy, Spread Some Joy' campaign on one of the private FM channels in several cities across India was extraordinary. With such appeals thousands of toys can be collected for disadvantaged children within a matter of days. While print and television are also very effective in their own ways, it is radio that presents an ideal solution for situations like these. Its repetitiveness-or nag power-can be compelling. This is a unique attribute of radio. This ability to remind at the appropriate moment can become a powerful tool in the hands of marketers. The truth is that there is no need to create clever sales pitches or cute commercials. Just straightforward and repetitive association can do the trick." --Arun Katiyar, station director of Radio City 91 FM. Source: Business Standard, Dec.31, 2003

Web Media

The Web may have popularised the Internet, but most users now connect to the Net using non-browser applications, according to figures released recently. Media players and instant messaging applications are now by far the most popular Internet applications, dwarfing the Web browser, according to December figures from Nielsen/NetRatings. 76% of active Internet users access the Net using a non-browser application. "Functionality has grown beyond the browser to become a fundamental piece of the overall desktop," Nielsen/NetRatings analyst Abha Bhagat said. The most popular application in December was Windows Media Player, reaching 34% of Internet users; AOL Instant Messenger, reaching 20.27%; RealNetworks' players reaching 19.76%; MSN Messenger, reaching 19.31%; and Yahoo Messenger, reaching 12.26%. Source: The Financial Express, Jan.7, 2004

Google is widely expected to make its stock market debut during H1 of 2004. The move may raise millions for the company and could spark enough excitement for a general IPO recovery. The sale could also raise as much as $4 billion, making it the biggest IPO since CIT Group Inc's $4.87 billion deal in July 2002. Source: Hindustan Times, Jan.7, 2004

Events & Public Relations

After being bombarded with complaints of worm-infested products across the country, falling sales, Food and Drug Administration filing a complaint against the company in the court, Cadbury has approached Amitabh Bachchan. Though it did not reveal Big B's charges for a two-year contract, sources said he charges around Rs 10 crore. Bachchan said, "I personally went to see how they are manufacturing the chocolates because I don't want to endorse a product due to which I lose my sleep." However, there is a need felt to break through the growing clutter of Big B advertisements. "The key is to write a script that is bigger than him," said Prahlad Kakkar. "Even we went through angst because he is such an overpowering personality…if Cadbury's has a cracker of a script, this will definitely work." Source: Economic Times, Jan.8, 2004

Films & Cinema

Applause Entertainment, an Aditya Birla group company, has lined up a major foray into regional films, including Bengali. CEO Anshuman Swami said the company was in talks with two major directors in Bengal. He also said the Bengali films would have the essence of parallel and commercial cinema. For instance, he cited the example of Rituparno Ghosh's Chokher Bali. Applause is also on the verge of releasing its Telugu films by end-January or February. Swami brought out the difference in strategy adopted for Telugu and Bengali films and said, while the former would be inherently louder, the latter would be more cerebral. Simultaneously the company is also working on two big-budget Hindi films, one being Govind Nahalani-directed Dev slated for release in March. Source: Business Standard, Jan.9, 2004

The world

The third part of the Rings trilogy, The Lord of the Rings: The return of the King, with a $209.4 million box office gross in North America, is even more impressive in the backdrop of the movie's budget: $95 million. However, other regally appointed epic movies that cost as much as or even more are never going to recoup their costs at the North American box office: The Matrix Revolutions, grossing $138.3million, is an under-performer, given its estimated $175million cost. The $135million Master and Commander: The Far Side of the World, was saluted by critics and looks likely to bag a best-picture Oscar nomination. Yet, it has only recovered two-thirds of its cost. Despite Tom Cruise, The Last Samurai has brought in only 64% of its $140million cost. Source: USA Today, Jan.7, 2004

Miscellaneous

Andrew Gowers, the editor of the Financial Times, UK, said that there is a seachange in the foreign media's perception towards India. Addressing a session on 'Engaging the World: Media Leadership Perspective,' at the CII Partnership Summit in Hyderabad, he observed, "The media abroad is now keenly watching the direction and achievements in the wake of the reforms undertaken by India, as well as opportunities that arise for global investors." The country's dynamism and potential to record trade surplus, in comparison to China, was also being talked of abroad, he said. However, he stated that the investors still had concerns about the quality of governance, and trade facilitation processes. In order to sustain the feel good factor among foreign investors, the government needs to address the issues of their concern, he said, and asked the domestic media to report objectively on the evenness or unevenness of investment, and whether it could be sustained. Source: Business Standard, Jan.9, 2004

Compiled by

Saurabh Marya, BA Mass Comm (1st year)

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