Outgoing CEO of Network18 Group and Viacom18 says he is just moving on to do different things, and letting the current crop of managers grow into leaders.
Every once in a while, the Indian media industry faces its moments of disbelief – sometimes it is the sudden change in the media environment, at other times it is about developments big enough to impact the industry’s way forward. And then there are those times, when the decision of one individual sends an alarm bell ringing across the horizon. On November 10, 2011, the industry was faced with one of those moments -- Haresh Chawla, CEO, Network18 Group & Viacom18 had announced his resignation from the company. The first reaction of many to that was “How is that even possible - he is the owner of the company”. But this was not someone’s sense of humour going astray. Haresh Chawla is leaving Network18, and everyone knows that while no individual is indispensable for a company, for Network18, he was the closest that it comes to being just that. By his own admission, even a few hours before the announcement, Haresh was still meeting his colleagues, some of whom he had worked with for the last 10-12 years, discussing business as usual. According to him, that is one of the very reasons why the news of his exit had to be announced as suddenly as it was. “There was no way to break the news slowly or sequence it. The fair thing to do was to inform everyone, at the same time,” he tells IMPACT. “But this has been on my mind for a while. Raghav (Bahl) and I have been discussing this for the last few months, and it was time to put a succession plan in place,” divulges Haresh. As he goes through his last few days at Network18, this is one of the most crucial aspects on his final agenda for the company. He remarks, “For me, Network18 is a baby that I have seen grow from nothing to a very strong 12-year-old. The dream now is to seethe child become a healthy teenager and grow into a strong person. Like any child, the personality and traits are formed in 12 years, and my only contribution to Network18 is the work ethics and culture that I have been able to build in this company.” Some of the company’s traits – of aggression and energy - mirror Haresh’s own ways. He says, “Our people are extremely focussed, they don’t get carried away by glamour and there is a drive for excellence in each of our brands. We have fewer channels versus other networks but most of our brands are in leading positions. All of our brands have the leader’s mindset. This is something I hope would be carried forward.”
A Leader’s Legacy
In his role within the company, Haresh has donned many hats. He is credited with building Network18’s news business from scratch and growing the likes of CNBC TV18 to leadership position today. He led the company’s growth in the digital space from the buyout of Moneycontrol.com to the launch of Firstpost.com and everything in between. He was looking after the businesses of Infomedia18 and HomeShop18, but the one company that occupied his time the most was Viacom18. Haresh recalls, “Our news business was set, the internet business was getting set, and Viacom18 was the largest investment and the biggest risk that Network18 took at the time. It was very important for us to get it right. You would recall the general entertainment channel launches of the time. We were the 10th launch and around us, all the others were floundering.” It was important for the company to build Viacom18 and subsequently Sun18. But Haresh did not let the job go even after the company was seeing success across itsbrands like Colors, MTV and Nick. The reason for that was the dual role of scaling up the existing channels by instilling right operating ethos and ensuring Colors did not lose momentum. Plans of new launches continued to keep Haresh busy. But the big hunt now is finding the right person for the job. A job that needs the blessings of both Network18 and Viacom18, which perhaps is the first reason why Viacom18’s initial hunt for a CEO was unsuccessful, and Haresh had assumed charge. Haresh, however, does not see this as a problem. “Viacom18 is run differently – there is no central sales team and each of these channels is run as a Special Business Unit (SBU) with a very competent leader and excellent teams. The drive is there, and structurally the company is on a forward looking track.”
Doing something Different
Unlike the news side that has seen Network18 groom and promote talent from within, Viacom18 has seen the company look out. Haresh does not completely agree with this view. He points out, “There is no fixed formula and it depends on the availability of talent in the system.” He also adds, “You should remember that this is a joint venture with Viacom; it is different from our other operations.” Did the “different” element of Viacom play a part in Haresh’s decision to leave? He shrugs it off as a possibility immediately, and states that Network18 has had “fabulous” partnerships. “And we manage them very well. We have transparent relations with CNBC, CNN, Viacom, Forbes and these relations have withstood the test of time. They are all run professionally and transparently. The Network18 culture is very professional; you don’t find individuals putting themselves ahead of the businesses, which is important because that grows a company for decades. That is what I have enjoyed.” But a person’s motivation sometimes changes, and Haresh cites that as the reason behind his decision. He says, “Sometimes people want to do something different. The team may not like it because they are used to having me around as part of the furniture. But I have done this for many years, and I want to do something different now. My life has been Network18 for all these years – so somewhere, this is me saying, what I want to do from here.”
Right Time to Leave?
Soon after the announcement of Haresh’s exit, the media questioned the health of Network18. Industry conversations on Haresh’s sudden exit range from problems within the company to management disagreement on the way forward. Some of these do bother Haresh, but it is not in his nature to let it perturb him. “Responding to rumours is not the way of Network18. On the financial side, our balance sheet has been stretched but there is no operational crisis. We have been bringing down debt and we would continue to do that. But one needs to look at facts. Fact is that we recently launched Firstpost.com, History channel, CNBC TV18 Prime HD, and there are two more channels– a kids’ channel from Nick and Comedy Central -- coming up in two weeks. We have signed up several blockbusters for our movie business. Which ‘sinking ship’ does all this?” He asserts that while Network18 is overleveraged, the company is working on it. “It is a financial structuring issue, which will get sorted out. The company is stable and settled, and everything is on track.” In his matter-of-fact way, Haresh says, “I am not quitting. I am moving on to do different things. I have spent so much time doing this that I want to do something different now. Change is useful. I have been telling the team that it is time for them to step up. The operating philosophy is that the SBU leader is fully empowered and I am available as a full fallback. But now is the time for them to step up and take full and complete responsibility, and take the company’s values forward. They will further grow as managers and leaders - the culture of empowerment, of speed, no bureaucracy, not over-synergising and respecting people, the roles they play, the decisions they take... this change is a goodthing for them. Our people are the only aspect of this company that matters. Our challenge is that when our people walk in, they walk in with passion. They need to be excited, have a direction and drive to win. They need to feel respected. This is not goodbye. I would always be proud of Network18, and it would belong to me in my head. It does not matter what people have to say.” Almost echoing Haresh’s thoughts, Raghav Bahl, Founder & Editor of Network18 comments, “Haresh is the kind of colleague one can only dream of, he is so honest, committed and focussed on delivering excellence. However, I fully understand his desire to explore other interests, being a person with such boundless enthusiasm and passion for success. Perhaps Haresh’s greatest achievement is the strong cadre of nextgeneration leadership that he has nurtured at several of our Group operations. Over the next few months, Haresh will work closely with me and this young crop of leaders to ensure a seamless transition of leadership. Finally, on a personal note, I wish to say that you never can quite say goodbye to an extraordinary friend and colleague like Haresh. He will always be around, as a friend, philosopher, guide and advisor to Network18, and, personally, to me. His can-do spirit is irretrievably woven into Network18’s DNA.” So what’s next for Haresh? Another startup, which seems to have dotted his career graph? “I am not so sure. There are several things coming up, and I am still contemplating. The important thing for me is to figure out how I will spend my time. I became a business head at the age of 30, and it has been a constant adrenalin rush. When you reach my age - almost 44 - you think of the things you have not done, the so-called smelling the roses. I would spend the next few months thinking how I want to spend my time.” But knowing Haresh, it would not even be a couple of months, and the entrepreneurial bug would be gnawing him again. “Sure,” he says with a laugh, “but let me enjoy those couple of months at least.”
Everyone loves to hate Network18
Haresh Chawla looks back at the moments that taught him more about building value brands, and the blueprint that made Network18 a media behemoth ...
From 100-odd people to a team of 6,000; from under Rs 3 million to over Rs 600 million in revenues; from a single channel to multi-brands and multi-platforms --- Network18 has lived an eventful decade. As Haresh Chawla, virtually the parent of this brand, bids adieu, he looks back at the moments that taught him more about creating value brands, and made Network18 the media behemoth that it is today... Haresh Chawla’s career graph has been dotted with startups – right from HCL Comnet in 1994 to ABCL’s film business in 1996 to launching Times Music in 1998 and even TV18 in 1999. The Network18 experience saw Haresh work with 25 media brands, most of which were start-ups. Each of his earlier stints - be it selling computers to corporates or winding down company assets at ABCL - left with him a learning that makes him the professional and the leader that he is today. As he goes down memory lane with IMPACT, he cannot help but mention the days when TV18 was operating from a bunch of huts in the Recondo compound in Mumbai. The company had a rundown studio in Delhi, with cracked windows and water leaking from the ceiling. “It was an absolute start-up,” recalls Haresh. TV18 then was a place devoid of hierarchy. As CEO, Haresh shared his room with four other colleagues and would step out for a smoke or a walk when his colleagues had to have a meeting. “We hadn’t seen money. We only had a belief, backed by pure passion, that if we set out and launched CNBC TV18, it would work,” says Haresh. Every day was about survival then, and the phase lasted for almost three years. Around that time, TV18 was faced with its first hard decision. “I remember chatting with Raghav (Bahl) one evening, when we were not sure how we would pay the next month’s salaries. We had just launched CNBC TV18 and that used up a lot of money. We were also investing in the production company we had then. It was early 2000, and we were contemplating a salary cut for everyone. I remember arguing that we would still run into a block if we kept putting money into both businesses. Eventually, we decided that we would wind down the production part, and focus on broadcast,” recalls Haresh. Thus, TV18 was born as a broadcaster. “We have been through many ups and downs since, but that was perhaps the toughest decision,” remembers Haresh. Network18 has come a long way since then. It is perhaps the only Indian company apart from the Zee Group that has built assets and then bought further, as in the case of Viacom18, Infomedia18, IBN7 or other media assets.
News – The First Foothold
TV18’s first accomplishment came in the successful launch of CNBC TV18. Initially, TV18 had contracted its sales anddistribution to Sony Entertainment= Television (now Multi Screen Media). But soon after, TV18 took charge of its sales too. Around the same time, the company bought Moneycontrol.com and invested to build the brand. Haresh remarks, “If we were betting on the future of financial news on television, we had to bet on it on internet as well. The first real use of internet was happening in the financial market space.” Even as both Moneycontrol and CNBC TV18 did well, they were burning cash. It was only in 2003-2004 that the brands started making money. “CNBC had become as big as the leading English general news channel in terms of revenues, despite being only a business news brand,” says Haresh. And TV18 was faced with its next big question – to remain small or expand. “We had all the requisites to expand, and we took the call to get into general news. Everyone thought we were crazy, given the dominance of a single player in that space.” Network18 convinced NDTV’s Rajdeep Sardesai and Sameer Manchanda to join them. The company thenapproached CNN, which despite being in advanced discussions with NDTV, decided to partner TV18 in the English news space. “Our business is not about selling, it is about buying consumer attention. From there, we have to try and create a habitual relationship. We realised we would get one shot to try and shift audiences. One of my favourite dialogues, from a movie called ‘Untouchables’ is ‘You don’t take a knife to a gun fight’. At a team meeting, we discussed that we needed to have everything that competition had, and then more. On launch day, we had a fullfledged channel. In four weeks, we had hit number one position. Our agency was still working on the launch campaign and I had to scrap the whole thing because we realised that we didn’t have to say anything. So our campaign said, ‘The new leader has arrived’. It was a fairytale experience.” Even when Viacom18 was launching Colors, the guiding principle was to have a complete channel from Day 1 itself. “Everyone else at that time did two hours and four hours of content, but we launched with full primetime programming. We had the same distribution as our peers, and more than 130 days of blockbuster programming,” says Haresh.
Creating a Blueprint
Nine months later, CNN IBN was listed. TV18 then acquired IBN7, launched CNBC Awaaz and later added IBN Lokmat. Haresh explains, “The Indian media market leaves you no choice but to be a player of scale and size. In the span of a year, we became India’s largest news network. But thecarriage fee phenomenon had kicked in and started eating into profits. Given the level of competition, one had no choice but to play that game. Around 2005-06, we were talking to an investor who wanted a blueprint. That was the first time we decided to do some formal thinking. Before then, it was pretty much an entrepreneurial setup – we took decisions on the phone and executed them. The blueprint had the elements that defined our vision -- that we become the leader in news, get into entertainment, make bigger investments in internet, get into the print space and then into radio as well.” Despite the lag against its competitors, Network18 became one of the top four TV networks by market share. “Network18 still has to catch up in the regional space. But we were the fastest growing and the only ones who had invested in other assets. We are the largest Indian internet destination – in.com, bookmyshow.com and so on. We are the largest home shopping network. We took a call to diversify our revenues. We wanted news to become less than 25 per cent of our revenues, and that happened,” says Haresh. Network18’s plans to diversify included print too, but the company’s attempts to launch a financial daily did not succeed. “Recession had kicked in completely and we realised it was prudent to wait and, if we were not likely to catch up on the print front, increase our investments in internet. But we still launched Forbes in a big way.” Infomedia allowed Network18 a larger play in print and the subsequent acquisition of askme.com in voice information services.
Of Value & Virtuous Cycle
For Network18, the significance of a network had set in five years back. “Unless you are a network, launching a single channel brand is difficult. Therefore, we go into what I call a virtuous cycle. Networks like STAR, Zee, Sony or us have nearly 60 per cent of television audiences passing through us every day. We have bouquets for broadcasting, and hence our ability to launch a channel and put a network behind it, is higher. Look at the launch of History, and we are launching two more channels in the next two weeks. It is because we have a certain size of audience consuming our network on a daily basis, and we are able to lead this audience to new brands. Even as everyone talks about how media is under-indexed in India, it is very difficult to get the viewer’s attention and it is becoming expensive by the day. If you have a network, you are able to add new brands to it; you can give it much more momentum at launch.” But according to Haresh, luck has not favoured the company on the financial side. He says, “There have been various restrictions and news broadcasters are on top of all kinds of regulatory issues. For two to three years, there was no regulatory clarity. The environment was very complex and constraining. It wasn’t easy to raise capital and many of our plans were delayed due to this.” But the run has been good, and the company now stands on a firm footing, despite what the market presumes at times. Haresh quips, “People love to hate Network18. Remember, we were nobodies in the business. In each segment, we have challenged traditional leaders and were written off. But we ended up dominating the space. I would say the thrill of battle, and the victory from it, has been the biggest pleasure.”
‘Creating something new is like a drug’
One word that Haresh Chawla uses often when referring to the last two decades of his career span is ‘hectic’. That is understandable, because his career has been about launching new businesses and establishing them into brands of value. In this conversation with IMPACT, Haresh explains what drives him from one challenge to another, and some industry issues. Excerpts:
Q] You have launched brand after brand, and in different categories. What took you from one challenge to another? Starting up and creating something is like a drug. It gives a high. It is about new challenges, and the business is inherently dynamic. At every moment, you are producing something different and it is instantly liked or disliked by the consumer. We are the most dynamic of all businesses, and that itself is a thrill. This is a people’s job. It is about identifying the right people, motivating them and getting them to think in an innovative yet structured manner.
Q] And how do you indentify such people?
There are two aspects to it. In the media business, flexibility and humility matter the most. Flexibility because of the way our products and competition dynamics change. And it is important for us to realise that we cannot assume we are doing the right thing – consumers are the final test. Most products fail because someone has decided that his way is the right way. Being able to have an open mindset is critical. A structured approach in our business can also be dangerous. You need an entrepreneurial mindset.
Q] Are there enough of such people in our business?
It is a very young industry that has grown dramatically, across all aspects. So finding talent has been a challenge. More than a skillset, you need a mindset. All of us consume media enough to understand it well. But you have to have the right mindset to be able to approach the needs of this business, and address it in a relevant manner.
Q] We understand that you have in fact suggested to the Indian Broadcasting Foundation (IBF) to hire a full-time CEO?
That is right, and the IBF is in fact doing it. When any industry grows rapidly, regulations end up lagging behind. Right now, there is a need for a strong industry forum that works full time on covering up this lag. When regulations are lagging, it is important that time and energy is spent in managing the environment to ensure the right conditions for growth. Otherwise, infirmities creep in. All possible distortions are there in the broadcasting business from a regulatory viewpoint. You have a price freeze on channels going on for the last seven years, which we have not been able to break. There is no price freeze on anything else in this country, and we are in fact seeing inflation at 15%. No capital investment has gone into building infrastructure. Consumer Revenue-per-Users (RPUs) are affected. Consumers have the willingness to pay but we have not created an ecosystem for that.
Q] What does this mean for the future of the broadcasting industry?
The future of broadcasting is phenomenal. But all stakeholders also have to work in synchrony. If we manage our way through the next few years, the other side is promising. Digitisation is a challenge, and once that is in place, it will help unlock the value of this industry. We will be able to create services differently and it will change the whole paradigm of the business. The biggest change will happen when broadband becomes ubiquitous. Consumers are now deprived of it. India will become the tablet capital of the world. Since Indians spend so much time on the move, if you are able to deliver good quality of broadband, it will affect everything. The TV consumption pattern will change.
Q] And are we ready for that change?
We will have to get ready. Media is a form of shared experience. We are all socially connected to each other and all of us want to have some kind of conversation. We all want to watch a blockbuster and discuss it. New media, while it has disruptive models, strengthens old media. So the big will become bigger, and as an industry, we will have to prepare for all those changes.
CHAWLA’S 10 COMMANDMENTS Motivate & Challenge
Talent walks in every morning and walks out every evening - that’s what IT companies say. But in our case, talent has to walk in with passion and give their best. There are no metrics for innovation or formulae for producing clutter-breaking content - only passion and ideas. Don’t give your people a job. The mantra should be to challenge them because that drives excellence and gets them going...
Create The Right Culture
Everybody comes to office every morning, wanting to do a great job, and create something unique. But what happens once they enter office can spoil it all. Thus, it’s really on the company to create a culture of openness, where people WANT to give their best...
Empower & Back Them
Give them freedom, and back them up...while all of us place trust and faith on people, it’s important that THEY know that you will be there to back them up, stand behind their decisions, and be there for them in any crisis
Aim for Perfection
Be concerned about perfection. Ideas are not what make media businesses great – it is putting together a perfect product...with perfect execution. EVERY bit matters- content, promotion, marketing, distribution - to woo and wow the viewers/users.
Cut the “over-synergy” Crap
The war is out there!! ...In the market, not within the network! Cut the bureaucracy and over-synergy crap. Consumers don’t care about your corporate structures - and hence, synergy doesn’t matter beyond a point...so don’t waste your time.
Be Scared & be Prepared
Be prepared. You cannot enter a war without complete ammunition or tiptoe into a market. Consumers don’t care if you are ‘launching’ - they want a full-fledged offering, and you should have nothing less than your competitor... A couple of smart kids can eat your lunch any day - that’s all it takes. A new show or a new site built with the exact same resources you have, can be a blockbuster, and catch you unawares!
Be Accessible
Listen to the team. All of us are intelligent media consumers, and that’s what makes us good media managers. So listen to the folks who care about their products intimately.
Actions Speak
Let your actions speak. The business is very exciting to the news media and one can get carried away, but in the end success speaks, not newspaper columns.
Consume Communication
Watch advertising. Thousands of professionals vie every day to break clutter and get consumers to act. Watch and observe what works and what doesn’t. It’ll help you create relevant content.
Create Conversations
New media is the future, one-on-one are the magic words. Don’t see yourselves as a one-way content ‘broadcaster’. Be part of the conversation and don’t ignore the power of social media or word of mouth. It’s tough to generate it. So be watchful – if there is no buzz, you are dead anyway!
SAI KUMAR
CEO, NETWORK18 MEDIA
Everything I know about Everything I know about business or media, I’ve learnt from Haresh. He has this magical ability to get the best out of people and drive them to do the impossible. Long back, when TV18 was this little outfit which no one knew about, it was Haresh who made us believe in our dreams, made us all feel special about ourselves and what we were setting out to do. Nothing is too small or big for him - he brings the same passion to designing the portfolio manager of moneycontrol. com as he does to a multimillion dollar acquisition or the launch of CNN-IBN or Colors. The legacy he will leave behind cannot be described - it is woven within the culture of the company, entrenched in the walls of the offices and the attitude of the people who work here. So, in a sense, I don’t think he can ever actually leave the place.
GAURAV GANDHI
COO - SUN18 NORTH
It’s truly inspirational to see Haresh’s leadership of the vast portfolio of businesses across the Network18 and Viacom18 media empire. I admire him not only for his ability to manage such a multidimensional portfolio, but also for the significant value he adds to each business across the board.
RAJDEEPSARDESAI
EDITOR-IN-CHIEF, CNN-IBN AND IBN7
Working with Haresh has been an exciting and rewarding experience for me, when we were setting up CNN-IBN and subsequently the IBN network. His scale of vision, clarity in thinking, quick decision-making and effective execution skills were instrumental in our success. He is a friend and a good human being and will be missed, I wish him the very best in all his endeavours.
ANSHUMAN MISRA
MD – TURNER INTERNATIONAL INDIA
My association with Haresh started more than a decade ago. I met him at an industry forum and immediately knew that he was an incredibly smart businessperson, but even I couldn’t have imagined how much this man would accomplish in a short period of time. Personally, it was a delight to work with him on the CNN-IBN deal back in 2005. It was amazing to witness his drive and perseverance up close as we worked on the deal. I wish him the bes in whatever challenge he takes up and consider myself lucky to call him a friend.
ADITYA SWAMY
EVP & CHANNEL HEAD – MTV INDIA
Working with Haresh is like driving an F1 car –action-packed, lots of risk-taking and never looking back. His energy is infectious and became the culture of the company.`He is the kind of person who is plugged intoeverything, all at the same time.
SANDEEP DAHIYA
SVP – CONSUMER PRODUCTS, VIACOM18
Haresh has spoilt us all by providing us the environment that he did - open, bureaucracyfree, rich with ideas and high on adrenalin. Every interaction with him can be like a shot of steroid that stimulates your nerves into action. He can make people believe in impossible ideas and then drives them to make it happen.
RAJESH KAMAT
CEO, CA MEDIA INDIA
Scale, out-of-the-box thinking and energy are the words that best describe Haresh. He can give scale to the smallest of ideas and change the game overnight.
