MUMBAI: The weak ad environment caused by the economic slowdown is starting to hit the bottom line of Viacom. The US media conglomerate has reported a fall in its profit and revenues.

While profit fell by seven per cent, revenue decreased 14 per cent to $3.24 billion, driven primarily by the mix of film titles and lower ad revenues. Adjusted operating income was $903 million in the quarter, down nine per cent, reflecting the overall decline in revenues, partially offset by lower expenses.

Adjusted net earnings from continuing operations attributable to Viacom declined by 12 per cent in the quarter to $512 million, and adjusted diluted earnings per share from continuing operations decreased by two per cent to $0.97 per diluted share.

The comparison with 2011 was impacted by the fact that Viacom?s 2011 third quarter included substantial timing benefits from major films and television event programming, as well as digital distribution agreements.

Viacom executive chairman Sumner M. Redstone said, "We continue to develop outstanding creative content on every platform while efficiently executing Viacom?s strategy. We are confident that Viacom?s unrivaled portfolio of powerful brands will continue to grow and evolve over the long term as we entertain and inspire new audiences around the world every day."

Viacom president, CEO Philippe Dauman said, "Despite challenging year-on-year comparisons with last year?s strong third quarter, Viacom remains committed to pursuing its long-term strategy of international expansion, continued programming investment and ongoing focus on operational discipline. Viacom continues to bring cultural powerhouses to fans around the world, and we are aggressively investing in our brands to create new hits, like Workaholics and Legend of Korra, now the most watched kid?s program on cable in the quarter. Paramount also continued to strengthen its platform by aligning its slate to provide upcoming releases with the best possible opportunity to succeed in the global marketplace."

Quarterly revenues of $3.24 billion decreased from $3.77 billion in the prior year. Media Networks revenue declined 5 per cent to $2.27 billion, driven by lower advertising and ancillary revenues.

Domestic advertising revenues decreased 7 per cent, impacted by the timing of event-driven programming compared with the prior year?s quarter. Worldwide advertising revenues decreased 9 per cent in the quarter.

Domestic affiliate revenues decreased 1 per cent, reflecting the significance of digital affiliate revenues in the same quarter last year. Excluding the impact of digital distribution arrangements, domestic affiliate revenue growth rate was in the high-single digits. Worldwide affiliate fees increased 1 per cent.

Film revenues were down 29 per cent to $1.01 billion. Worldwide theatrical revenues decreased by 52 per cent in the quarter to $283 million, reflecting the number and mix of the company?s current quarter releases. During the quarter, Paramount released three films,DreamWorks Animation?s ?Madagascar 3: Europe?s Most Wanted?, ?The Dictator? and ?Titanic 3D?. In the comparable period of 2011, Paramount released four films: DreamWorks Animation?s ?Kung Fu Panda 2?, Marvel?s ?Thor?, ?Super 8? and ?Transformers: Dark of the Moon?.

Worldwide home entertainment revenues declined by eight per cent in the quarter, driven by the mix of available titles, and worldwide television license fees decreased by 24 per cent reflecting both the number and mix of titles. Worldwide ancillary revenues increased by 44 per cent to $104 million in the quarter, driven by higher digital revenues.

Adjusted operating income decreased 9 per cent to $903 million in the quarter. Media Networks adjusted operating income declined $99 million, reflecting lower overall revenues, partially offset by a decrease in expenses. Filmed Entertainment adjusted operating income decreased $3 million, reflecting the revenue decline, substantially offset by lower expenses. Corporate expenses decreased $15 million, principally reflecting lower variable compensation costs.

Quarterly adjusted net earnings from continuing operations attributable to Viacom decreased $71 million, or 12 per cent, in the quarter ended 30 June, 2012, principally due to the decline in adjusted operating income. Adjusted diluted earnings per share from continuing operations for the quarter were $0.97, a decrease of $0.02 from the prior year?s comparable quarter.

MUMBAI: Viacom18, a joint venture of Network18 Group and US-based Viacom, has suffered losses for the fourth straight quarter, dragged down by new channel launches and its motion pictures business.

The loss for the fiscal first-quarter have, however, narrowed from the trailing quarter as revenue has started flowing from these channels. The increase in its expenses during the quarter ended June 30, 2012 was on account Rs 711 million spent on its earlier-shelved Hindi movie channel (against no expenses a year ago), a 53 per cent increase in its marketing and distribution costs to Rs 1.03 billion from Rs 674 million a year earlier.

The company reported a net loss in the first quarter of 2012-13 against a small profit a year earlier, due to losses in the motion pictures and new broadcasting businesses.

Viacom18, which owns a group of entertainment channels including flagship Hindi entertainment channel Colors, posted a net loss of Rs 249 million in the first quarter against a profit of Rs 26 million a year earlier. In the fourth quarter of 2011-12, the broadcaster had reported a net loss of Rs 337 million.

The company reported operating losses of Rs 166 million from new broadcasting operations and Rs 153 million from motion pictures business. Operating profit of Rs 238 million came from Viacom18?s continuing broadcasting operations.

Viacom18 said, "Our continuing business, including new operations, grew at about 12 per cent over the corresponding quarter last year. Colors turned in another steady quarter in the Hindi GEC space in a highly competitive market environment. It continues to be the No. 2 channel during weekday prime time with 5 shows that are slot leaders in their respective slots."

The operating losses in new broadcasting operations and motion pictures business pulled down the company?s overall operating profit by 87 per cent to Rs 24 million in the first quarter from Rs 189 million a year earlier.

The discontinued HMC and The Indian Film Company businesses earned the company operating profit of Rs 105 million against a loss of Rs 28 million, primarily because of the revenue flow of Rs 911 million from the sale of a library of 500 movies to Star India in January.

Viacom18?s total operating revenues were up 44 per cent in the first quarter of 2012-13 to Rs 4.0 billion (which included revenue realised from sale of the movie library) from Rs 2.76 billion a year earlier.

MUMBAI: The Times Television Network (TTN) has appointed Rohit Kishore Chopra to the post of head legal at Times Television Network and Prime Connect. He will be based out of Mumbai and be responsible for all legal and regulatory affairs of TTN and Prime Connect as well as support the team on Box TV.

The existing legal teams at TTN and Prime Connect will report into Chopra who in turn will report into Avinash Kaul.

ET Now, Times Now and Zoom chief executive officer Avinash Kaul said, "We are delighted to have Rohit on board. Given his significant experience in the broadcast space, Rohit will play a pivotal role in directing the legal and regulatory aspects of TTN?s business."

Chopra comes to TTN from Viacom18 Media where he was head corporate legal affairs. He has worked at Balaji Telefilms Limited, Reliance Big Broadcasting and ESPN Star Sports in the past.

Chopra said, "I am really excited and honored to be a part of such a diversified media conglomerate. I look forward to working with this dynamic team and adding value to the system."

MUMBAI: Viacom18?s comedy channel Comedy Central is looking to nurture talent of home grown comic artists through its new property ?Comedy Central Presents?, which is a tie-up with select stand up artists and comedy groups to promote their shows on-air, and on the digital space (facebook.com/comedycentralindia).

?Comedy Central Presents? will promote everything that is comic and some of the most recent associations have been with comedy fests like the Clean Comedy festival with Dan Nainan, The Ultimate Hahathon at Counter Culture every Thursday, Evam ? a popular stand up comedy group in Chennai. Other names promoted under the ?Comedy Central Presents? banner include Neeti Palta ? Loony Goons (Delhi), Karan Thapar ? Schitzengiggles (Mumbai), Raghav Mandava ? CheeseMonkeyMafia (Gurgoan) and Adam Dow - Improv Comedy Mumbai.

To keep the viewers updated on the latest comedy gigs in town, Comedy Central will also have a special on-air spot called ?Giggle Guide?, where viewers are informed about gigs happening across the country, the Facebook page would have regular updates informing fans about the date and venue of the performance.

?CC Presents? aims at getting bigger and better by each passing week by adding more associations to the current list of tie-ups across artists performing in Delhi, Mumbai and Bangalore. The channels? main aim is to take over the comedy scene in India and be present where ever good comedy is.

MUMBAI: Much of the ills that the kids channels faced in the last couple of years continued to prevail in the first half of 2012: revenue pressure, distribution bottlenecks, audience fragmentation, fierce competition, increase in costs and low advertising rates.

And yet the genre is attracting new channel launches. Viacom18 launched a channel dedicated to action to complement Nick and add to its bouquet strength, similar to Turner‘s two-channel pack and one behind Disney‘s. Later this month, Discovery Kids is going to make its appearance in India.

So what is exciting kids networks? The sheer demographics with 30 per cent of India‘s 1.2 billion population living in this age group, impending digitisation and 10 per cent yearly growth in viewership.

The ad market for the genre, though a meagre Rs 2.5 billion, has the potential to grow faster. The industry expects it to grow 10 per cent year-on-year with non-traditional advertisers like automobiles, consumer electronics, and mobile devices consciously targeting the genre.

Kids TV broadcasters are working on their content front to take away share from competition. The magic duplication of global franchises is not enough. Building strong, multi-dimensional characters is the most important element to attract kids across the globe.

Agrees Turner International India South Asia GM Entertainment Networks Monica Tata, "Whether it is animation or live action, kids need to be able to relate to characters irrespective of geographical, social and cultural diversity," she says.

Faced with the uphill task of satiating the entertainment needs of kids, broadcasters are increasingly experimenting with content. There has been a swift move from comedy to action-oriented shows. The logic of launching Sonic is to primarily tap this market.

The action genre has dedicated offerings from Pogo, Sonic and Disney XD. Local productions including live action and animation continue to rule the roost as far as ratings are concerned.

The Chotta Bheem franchise continues to be the tentpole property of Pogo, besides generating revenues at the box office for its producer, Hyderabad-based Green Gold Animation.

Nick has also placed its bet on Shaktimaan, the animated series produced by Reliance Animation, with the hope to tap into the legacy of the Indian superhero and attract the action-loving generation. The show will also air on Sonic, which is growing its reach steadily.

?Local content is substantially drawing kid‘s viewership, whether it?s live action or animation. All players in the category now have well established local shows on their grids. Action is slowly creeping into the comedy space that so far dominated the category,? says Viacom18 EVP and GM Sonic and Nickelodeon India Nina Elavia Jaipuria.

Disney is experimenting with local live action shows like Suite Life of Karan and Kabir and Best of Luck Nikki. The two shows contribute about 15-19 per cent of total programming hours on Disney Channel.

?Live action is a genre that is driving significant viewership and is increasingly becoming popular among kids and families,? avers Disney UTV executive director and Disney kids network business head Vijay Subramaniam.

Disney XD has taken the television rights of new animation series Mysteries & Feluda produced by Hyderabad-based DQ Entertainment. Feluda is a series of novels and short stories written by famous Indian director and author Satyajit Ray.

?We have several local animation shows that enliven the rich Indian storytelling heritage while remaining entertaining and relevant to today?s viewers, such as the famous Indian detective series ? Feluda by master storyteller Satyajit Ray, the story of twins ? Luv Kush, Suryaputra, The Adventures of King Vikram and Little Pandavas,? Subramaniam adds.

While the hunt is on for sourcing more local shows, kids channels need to just find a couple of flagship shows. Says Jaipuria, ?Most category players are led by one or two shows. The channel ratings are garnered by these shows spread across various slots through the day.?

Agrees Tata, "An interesting trend noticed is that kids prefer to tune in to fewer shows on kids channels than ever before. But their time spent per show is increasing, thereby ensuring that the viewership remains positive.?

Will the launch of Discovery Kids create further fragmentation in an already crowded space?

Jaipuria does not think so. ?The Sonic launch fueled the category‘s growth. Discovery Kids could aid in growing it further. Since its offerings could be unique, this will only lead to minimised fragmentation.?

The Summer Window

The January-June period was a significant window and a hectic one for kids channels as the summer vacation falls during this period, the only time of the year when kids have long, uninterrupted access to television. The channels across the board pulled out all stops to come out with top notch programming to grab maximum eyeballs.

Despite the fact that cash-rich Indian Premier League (IPL) also falls during the summer vacations, the kids broadcasters did not see much of an impact on their viewership. The genre viewership during the first the half of the year, in fact, has improved from 18 per cent to 20 per cent over last year, asserts Tata.

Source : TAM Media Research
Market : All India
TG : CS 4-14 yrs
Period : Yr 2011 to 2012 (Till Week 21 ‘12)

As part of its summer line-up, Disney Channel saw the launch of live action series The Suite Life of Karan and Kabir, an Indian adaptation of the American show, The Suite Life of Zack & Cody. It also aired the second season of Best of Luck Nikki, another live action series which is an adaptation of the American show Good Luck Charlie.

Nick introduced classic American animated series Dennis the Menace during the evening band. The DIC Entertainment produced series will have a 52-episode run.

The show strengthened Nick?s evening band, particularly since it had lost a key property Oggy and the Cockroaches to Cartoon Network India. The switch happened as a result of an exclusive co-production agreement between Cartoon Network Asia Pacific and French animation studio Xilam.

Sonic entered into a deal with Saban Brands to air its adventure series Power Rangers Samurai and Power Rangers Super Samurai for two seasons in a deal stitched by Los Angeles-based producer-distributor MarVista Entertainment.

Cartoon Network launched a humorous show, Horrid Henry, in English, Hindi, Tamil and Telugu, apart from building on its Ben 10 franchise by building ‘Ben 10: Ultimate Alien?.

Pogo ramped up its content offering by launching animated comedy series Mojacko. The channel introduced new seasons of its key franchise Chotta Bheem in addition to a new movie, Chotta Bheem and the Curse of Damayaan that collected Rs 20.5 million in the first five days of its theatrical release.

Marketing thrust

The first half of the year also witnessed a host of marketing activities that was directed at engaging kids. Nick brought the Power Rangers to India by conducting ?The Power Ranger Tour?, aimed at increasing the fan following of the iconic characters in the country.

The Power Rangers Samurai initiative was supported with a 360-degree marketing campaign which included the Power Ranger?s on-ground tour, van activations covering 15 key cities, print ads, radio and cross promotion across various television channels.

Similarly, Disney Channel had launched the Jet Set Go on-air contest in association with Jet Airways which gave kids and their families an opportunity to win an all-expenses paid trip to Hong Kong Disneyland. The campaign, which was driven completely on the kids network channels of Disney, generated six million entries from across India and culminated with the unveiling of Disney-themed aircraft.

?The success of our recent campaign ?Jet Set Go? is a witness to the fact that unique and innovative engagement which resonate wonderfully well with the viewers. While the kid is definitely the hero, these innovative campaigns involve and engage with their entire family,? avers Subramaniam.

Push to grow L&M

There was major thrust on Licensing & Merchandising too as all the major channels launched Back-to-School product range featuring popular characters be it Dora, Ben 10 or Winnie The Pooh.

However, the deal that grabbed the maximum attention was the one signed by Disney Consumer Products India, the licensing & merchandising arm of The Walt Disney Company India, with IPL team Mumbai Indians to launch Mickey Cricket Merchandise which includes apparel and accessories, footwear, stationary, home and toys, all featuring Disney?s Fab Five in fun cricketing attire.

Disney Consumer Products India has also done its first licensing deal in the real estate sector with Mumbai-based real estate company Sunteck Realty to launch Disney Inspired Homes in Mumbai. The project is expected to generate a turnover of Rs 100 billion to the company.

Nick was also not far behind with as many as 55 licensing deals already in its kitty which include partnership with Future Group‘s retail chain Big Bazar to launch the Spongebob SquarePants ? Back to School range of products for children. It has also partnered Metro Shoes to launch Dora co-branded footwear in addition to a deal with TI Cycles to launch co-branded cycles.

Cartoon Network Enterprises, the consumer products division of Turner, partnered Attano Media & Education to launch video-ebooks and interactive activity books.

However, the L&M is still a very nascent business for kids channels in India who see it as a long-term play that will evolve over a period of time. L&M contributes only 5-7 per cent of total revenues for most channels.

With the first half of the year over, kids networks are eagerly awaiting the rollout of digitisation in the first four metros of Delhi, Mumbai, Kolkata and Chennai from 1 November. "Long under pressure and a weakening business model, digitisation could be a game-changer for a genre that has been struggling to grow in the last few years," says a media analyst.