By Abhinav Trivedi
Despite the economic gloom brought about by the ongoing slowdown, India’s broadcast industry is abuzz with big ticket launches that involve huge monies. The triple blow of low gross domestic product (GDP), high current account deficit (CAD) and high inflation have not managed to dampen the spirit of general entertainment channels (GECs), which still ride high on the star power of these shows to garner high brand equity besides profits.
This year saw the launch of several high profile shows with celebrities on board on the major GECs. From Amitabh Bachchan in KBC Season-7 (Sony) to Salmaan Khan in Bigg Boss Season-7 (Colors) to Anil Kapoor venturing into the TV space with ‘24’ (again Colors), the GEC space has been crowded with shows that have literally become the brand ambassadors for the respective channels, driving ratings and returns on investment (RoI) in various ways.
Most of the channels seek almost 80% of RoI through advertising revenues. However, experts we spoke to have different viewpoints on the RoIs which channels derive from these star-studded shows. While some high profile shows might not make considerable profits, with their high production cost and celebrity fees, they drive viewership and hence ratings. This strengthens the brand value of the channels, paving the way for high subscription and revenues for programmes slotted alongside the big shows. None of these shows are really loss-making. According to experts, if a show like ‘24’ is not profitable in terms of money, the star value and unique format of the show will definitely help the channel gain traction and mileage in the long run.
Advertisers on these shows too are highly upbeat about them, and expect high RoI for their spends. “It would be interesting to see whether the 10+2 ad limit per hour for programming on television post October affects earnings for these channels. In case of celebrityled shows, channels are able to demand much more money as compared to normal shows,” said the CMO of a leading brand, which is the main sponsor of one of the big ticket shows on a GEC.
“Due to high visibility and buzz around such shows, marketers get a more tangible association and this drives the RoIs. But in the end, results matter. A channel might make money from a show, but if the show does not deliver in terms of viewership, a marketer would be skeptical about sponsoring them next time,” he observed.
WHO GAINS WHAT, AND WHERE
ROIs vary from show to show. While KBC Season-7 should be the highest grosser in terms of money in the range of Rs 200+ crore, shows like Bigg Boss on Colors, which started recently with Salmaan Khan in the lead, might make more than Rs 100 crore in revenue. The total production cost of the latter for the entire season is in the range of Rs 60-70 crore.
Reportedly, Khan charges Rs 1.5 crore per episode, appearing on the show twice a week. That makes it Rs 45 crore for 15 weeks. As per experts, the money required to put together the show is above Rs 100 crore, making Bigg Boss one of the most expensive shows on TV.
Senior industry experts mentioned that Vodafone, the title sponsor for Bigg Boss, paid Rs 30 crore for the title tag. “The money could be even more than Rs 30 crore. The show is of 104 episodes and therefore of longer duration. One can even see coffee mugs and cushions with the Vodafone logo in Bigg Boss house,” observed a senior media planner.
‘24’, the fiction series starring Anil Kapoor on Colors, is launching on October 4, 2013. As per Colors sources, ‘24’ with Tata Safari Storme as the title sponsor, is seen more as a trendsetter than a money-maker. Raj Nayak, CEO Colors, said, “24 is a first-of-its kind show in the Indian TV space. It would not only lift the standard of TV broadcasting on our channel, but also the industry as a whole.” The projected revenues from ‘24’ are in the range of Rs 45-55 crore.
In addition to this, Colors has also raked in approximately Rs 65-80 crore as revenue from Jhalak Dikhla Jaa this year. The show apparently had a high viewership online.
In August, Star Plus launched Junior Master Chef in continuation of its earlier version of Master Chef. The show is expected to rake in revenues in the range of Rs 60-70 crore. The show involves three celebrity chefs and the channel claims it is a first time experiment. The channel had also launched India’s Dancing Superstar, which ended in August. Sources say the show approximately garnered revenues in the range of Rs 70-90 crore. Although experts believe that the shows won’t fetch as much profit for the channel as big shows normally do, they would mark the presence of the channel in the non-fiction category. The channel has also launched the mythological series Mahabharata recently. Insiders have confirmed that the cost of making the show itself is close to Rs 100 crore. “All shows are important for us. We have made a significant investment in content for Mahabharata. We are very heartened by the initial response,” says Nikhil Madhok, Senior VP, Marketing, Star Plus.
COST OF PRODUCTION VERSUS TRACTION
Sony TV, which of late has seen a downfall in viewership as per TAM data, launched Kaun Banega Crorepati (KBC) with high expectations. A senior media planner said, “KBC will easily make more than Rs 200 crore this season. At an average rate of Rs 3.5 lakh per advertising spot, for 36 episodes, the figure is easily achievable. They have nine sponsors on board, and I believe that final inventory will be sold at a higher price.” Cadbury is the title sponsor of KBC this season. The show commands a premium price for ads, being a family show. As per sources, the production cost of the show is approximately Rs 50 crore for the season. Bachchan’s host fee of Rs 2 crore per episode takes the overall production cost of the show to above Rs 100 crore. The channel also recently mopped up approximately Rs 60 to 80 crore through Indian Idol Junior, the production cost of which is said to be close to Rs 50 crore.
Zee TV, on the other hand, came up with DID Super Moms, an extended version of Dance India Dance, its popular dance show. DID Super Moms, which ended recently, was seen as a pitch by the channel to target young mothers, who are a core section of the TG in the GEC space. As per sources, the channel has raked in revenues in the range of Rs 70-80 crore for DID Super Moms, while the cost of making the show was approximately Rs 50 crore. The channel has also come up with shows like Buddha and Jodhaa Akbar, which have high production cost.
Meanwhile, Life OK is coming up with Bachelorette India, a marriage series featuring Mallika Sherawat as the protagonist. Experts estimate that the show may earn Rs 45-55 crore. They agree that the show is expensive to produce, and may not give the channel too much by way of profit, but it would serve the objectives it is meant for. Ajit Thakur, GM, Life OK said, “The festive season is close at hand and Bachelorette India will take us to the next level. We wanted to do something different from what other channels are doing, like dance and music shows. Through this, we are also meeting the demands of our advertisers for a change in agenda of a non-fiction show.”
The expectation is that Life OK will seek high viewership from such shows, and this will help them garner high subscription revenue and money for other programmes as well.
“Now with digitization, subscription has become more important, and because of these shows, a viewer will chase his operator for a particular channel. For example, I want Colors because Bigg Boss is airing… so in that way, it helps the channels not only from an advertising point of view, but also subscription. A channel should have an identity which goes beyond a show, because a channel shouldn’t sink after the show goes off the air… that’s the biggest challenge for the channel,” said Ashish Bhasin, Chairman, India & CEO, SE Asia; Director, Posterscope-APAC.
The top nine shows in the GEC genre will together make approximately Rs 800 crore in 2013. Considering the new regulations and developments in the broadcast space, and the overall economic scenario, posting such substantial profits would no doubt be a huge achievement, but what the channels stand to gain from these star-studded shows is much more than monetary gain.
Feedback: abhinav.trivedi@exchange4media.com
