Print

Comment

Email

Digg

Del.icio.us

Reddit

Reaching out directly to the audience is critical for media houses, but it is not possible to interact and engage with them on TV medium. The Indian broadcasting segment space is now crowded with over 350 licensed channels, in addition to DTH and digital cable systems. This means that users are overwhelmed by the sheer number of channels available on their TV sets, and in this scenario mobile phones with SMS information and alerts present a useful and feasible medium for the channels to promote their brand and reach out to the target audience.

Media houses like NDTV, Zee Networks, Balaji Telefilms, and Rajshri Production have been fast adopters of VAS and have got on the VAS bandwagon in a big way. All the big TV channels market their content through short codes. Voting and contests on shows are key revenue sources for media houses. Media channels are increasingly trying to capitalize their content, using mobiles in the form of mobile TV or for mobile content like downloading wallpapers, videos, games of TV concepts, etc.

Mobile is the ideal medium for engaging with the audience on a particular show-be it via voting or for sending their opinion about an issue. It is the easiest means to augment viewer participation and help viewers relate more to the shows that they have only been watching so far.

Growth Boosters
Talking about the growth drivers Amit Sinha, associate vice president, One97 Communications says, "It is true that media and broadcasting is a huge platform to communicate. However, it is predominantly one way communication. The interactivity, that VAS services offer, makes them more attractive for the media and broadcasting sector. So, the major growth drivers are interactivity, accessibility, and trackability. Through the mobile phones media houses can now reach their consumers anytime, without waiting for them to either switch on their TV sets. By virtue of the business models, distribution of content through VAS services are easier to track."

Another factor is the increasing accessibility of VAS content. Data tariffs, higher-end handsets, and superior connectivity are no longer the limiting conditions. The introduction of regional language capabilities have further expanded the VAS horizon in India.

The entry of 3G and related technologies in the Indian market is also acting as a major booster, and media companies see a major play in the video, IPTV, and mobile TV space.

Besides, the onslaught of reality TV and talent hunt shows have spearheaded VAS growth in the general entertainment channels. Also, the need of people to connect with the world and stay updated with the latest news has enabled a plethora of news channels to market their content and make it available at the users' fingertips. The accessibility and affordability of devices is another major reason.

Revenue Share Model
Revenue shares follow the normal standard model in most cases, but are differentiated based on the service offerings. Talking about the revenue share model working between VAS providers, operators and media companies, Satish Kejriwal, COO, Buongiorno says, "Normal revenue share in the range of 75:25 is in favor of the operator while, in general, the 25% is shared among VAS provider and media companies. In some special cases, the revenue shares go to the 60:40 scenario, again in favor of the operator but this is done for shows having high-end user products like game shows, etc."

Echoing similar thoughts, Shruti Gupta, head, new initiatives, NDTV Convergence says, "The current revenue sharing model we see in the Indian telecom sphere favor telecom operators. The splits between the VAS provider and media companies vary according to the models adopted by individual companies for various products. We are also working directly with telcos in India and other territories as content partners to maximize their revenues."

"The most common model is the sharing of SMS revenues generated by the shows. The exact sharing percentage depends on the volume and the relationship," says Amitabh Kumar, director, corporate, Zee Networks.

3G-A Game Changer
The largest change that both the media companies and VAS players foresee is the availability of 3G services in India. The companies are expecting that with the launch of 3G technology, new technology platform is likely to evolve in near future. Commenting on the same, Kumar says, "3G will present opportunities to stream videos on mobile phones as well as generate new content for mobile devices. We envisage such mobile deliveries to be associated with interactive advertising, where users will be able to click a link directly from their phones to know about or order a product."

The availability of 3G and its evolutions such as HSPA and EVDO present new opportunities to broadcasters as well as media companies, and VAS providers expect this to evolve over the next one year.

Page(s)   1  2