First day, first show on TV to become reality

Tag : distribution cable
You will be able to watch movies at your home on the same day whenit is released in the cinemas anytime soon. The cable TV industryis awaiting the central government's much-delayed policy onheadends-on-the-sky (HITS), which will make this a reality. Theindustry's large multiple system operators (MSOs) are planning toobtain rights from production houses to release filmssimultaneously as they are released in movie halls. The dog-eat-dogcompetition from telephone companies as well as direct-to-hometelecasters are forcing cable TV industry to find novel ways tocapture the consumers' loyalty.
Incablenet, the Hinduja-owned MSO that caters to one-third ofIndia's cable TV owners, has the wherewithals to release films ondemand directly to homes. Since the company is also into contentgeneration, it will be easier for it to do it. "Once the HITSpolicy is in place, we will explore the possibility to releasefilms via cable and will talk to production houses," said RaviManuskhani, managing director of Incablenet.
A senior official in Wire and Wireless India Ltd (WWIL), the ZeeGroup company formerly known as Siti Cable, on condition ofanonymity, also said the company is open to tying up with filmproduction companies for releasing movies through cable. Theofficial said the company could go for releasing films four to fivedays later, if not on the same day.
"We are ready to launch HITS-based telecast any time. We alreadyhave the HITS licence," said an official at WWIL, which is readywith digitalisation in five cities including Lucknow, Ludhiana andChandigarh. Many other MSOs are also understood to be keen onobtaining rights from movie production houses to release themsimultaneously to homes. Film industry experts say this will notimpact the existing film exhibitors because multiplexes still offera different big-screen experience.
Digicable chairman Jagjit Singh Kohli, the poster boy of the cableTV industry, however, ferociously pooh-poohed other MSOs' claims torelease films via cable. "The technology to broadcast a programmeon demand, with interactive features, is not yet ready." HITSoperators uplink signals of various TV channels to their satellite.Cable operators in turn downlink these signals and distribute themin digital format to the subscribers through their network.
Since HITS enables the cable operator to distribute programmes toonly to a set of customers in a certain city, movie producers willbe open to selling rights to the operators on a revenue sharingbasis as it will maximise their returns, says a film analyst.
Kohli, however, says that that video-on-demand is an altogetherdifferent concept and no existing player is fully equipped tohandle that.
-Manoj Jain
Cartoon Network plans theatrical biz foray on back of filmmerchandise
Cartoon Network, which is planning to establish its theatricalbusiness in India, sees the merchandising business as a precursor,and would therefore, like to build an expertise in the business.The company will soon launch its animation theatrical business inIndia, which will include creating own intellectual property rights(IPR). The unit is expected to be operational by 2009. This willinclude movie production, distribution, licensing and merchandisingas well.
Cartoon Network has tied up with the forthcoming Hindi sci-fi filmLove Story 2050 for doing the merchandise activities. This Rs2.5-crore retail project includes apparel, furnishing, toys,publishing and stationery.
Jiggy George, executive director, Cartoon Network Enterprises,said, We want to learn this business is because it will be aprecursor to our own theatrical business. And consumer productswill be a key component for each film that will come out.
He said that most of the experience have been on the large formattelevision shows and licensing around them. The properties resideanywhere between 2-10 years age group, and so the kind of roll outthat is necessary from a consumer products perspective for moviemerchandise is a completely different ball-game. The company iskeen to learn the nuances of the business and has been watching theBollywood space closely. The key is not just about getting theproducts in the market but getting it into a wider distributionnetwork like the way we are used to, said George.
Cartoon Network conducted a study, which revealed that Bollywoodand cricket plays very important role in a kids life. However,content also plays a vital role in deciding whether the merchandiseis palatable for kids. So the Network has taken a consciousdecision to go for content which has some twists in the genreincluding fantasy or sci-fi. So to that extent, Love Story 2050fitted the bill perfectly.
Cartoon Network Enterprises has developed over 18 types ofcustomised merchandise across five key categories such aspublishing, toys, home furnishings, apparel and novelty. Theseproducts will be sold under the umbrella of the popular kidschannel Pogo and branded Pogo Inspired.
Zee may list two of its divisions on LSEs AIM
Zee Entertainment Studios (ZES), the motion pictures division ofZee Entertainment Enterprise Ltd (ZEEL), may list its two divisions Zee Motion Pictures and Zee Limelight - on the London StockExchanges AIM (Alternative Investment Market).
ZES requires a funding to the tune of Rs 800 crore in the next twoyears and it is likely to be raised through the overseas listingand E-City Ventures, Zee group's cinema infrastructure and realestate arm, which is also the holding company for Zee groupsentertainment brands, such as Fun Republic, Fun Cinemas, E-City,EPMS, and E-City Media.
Zee Entertainment Studios (ZES) launched two labels - Zee MotionPictures for mainstream films and Zee Limelight for modestlybudgeted films targeted at niche audiences.
The business model includes production of films in-house and ownall IP rights in perpetuity, co-productions targeting 50 per centIPR to de-risk or work with leading talent, acquiring distributionand marketing rights to films to exploit revenue opportunities,gain access to leading talent and fill out the yearly distributionpipeline as needed.
Going forward, the company plans to ramp up of production activityin fiscal 2009, in association with filmmakers including DavidDhawan (1 film), Anil Sharma (2 films), Sameer Karnik (3 films) andGuddu Dhanoa (3 films). The company is targeting co-production andacquisitions of 10 hindi films, out of which seven films will bereleased in 2009.
Overall, there will be 12 releases in FY09 with five in regionallanguage films.
The company is also setting up its own distribution offices both indomestic and international markets. The international marketsinclude London, US, Australia, Dubai and UAE. Out of this, eightdomestic locations will be leveraged through the group's funmultiplex and E city theatres as preferential distributors.
The company is trying to acquire preferential satellite rights toZEEL and Dish TV, and exploring international opportunity formerchandising and distribution.
The company is expecting the revenues to grow to Rs 3,200 crorefrom Rs 300 crore with EBITDA at 30 per cent plus. It is alsolearnt that the capital for ZES once structured will be presentedto the board of directors and upon the approval from the same thecompany will move forward with the listing on AIM. E-City ventureswill partner this with distribution and exhibition through theirnetwork of cinema halls. ZES will use all possible support from ZeeNetwork. ZES is spearheaded by Punit Goenka, who is the whole-timedirector, Sanjeev Lamba as director marketing and sales and DeepakSharma as director production. The division is in the process ofhiring a team that will eventually be located in 15 domestic andinternational locations.
-Pritha Mitra Dasgupta