Read the whole thread to understand business model
Ogilvy has helped to build some of the most recognizable brands in the world: American Express, Sears, Ford, Shell, Barbie, Pond’s, Dove, and Maxwell House among them, and more recently, IBM and Kodak.
An interesting article about Kranti Gada.
The article gives good insights about how management thinks about devloping new leaders in the company. From hiring employees from cos like Viacom, Jio, Zee to employing managment trainees from IIMs, it does seems that managment wants to have good talent in the company. Also, the last statement from the interview of going directly to the customers instead of a platform is pretty interesting.
Thread on recent actions happening in music streaming space. JioMusic merging with Saavn with combined entity valued at $1Bn. Reliance betting big time in this space.
The above stats are for filmigaane and shemaroo channels from socialblade.com
Look at the pace at which the subscriber nos. and views are compunding every month (filmigaane views compounding 32% and shemaroo 25% M-o-M)
Last year around this time they had cumulative views of 3 Bn and 2 Bn , at the current run rate the channels will do that every 8 months and the views are still accelerating!.
My thoughts in no particular order
- CPM rates might not reach earlier high levels again as the new viewers drawn in by the cheap internet are not the earlier ones who where urban/higher income/middle class salaried.
But they might increase from current levels as online ad budgets catch to cater to these new audiences, hence advertisers might pay less for ad display as these might convert to sales less often.
2)There is a dearth of content for these new viewers and even youtube channels like TVF and AIB do not cater to these audiences (The shows like pitchers, tripling etc. are clearly aimed to towards the urban middleclass)
3)Vast majority of Indians are entertainment starved with low theatre penetration(Compared to other countries), Low availability and affordability preventing home entertainment such as dvds and vcds from sating the need.
4)Netflix content wise does not sate these Mass Indian audience( content is probably relevant to less than 5% Indians) and is priced out of most of Indias reach.
Amazon prime while reasonably priced is better in the content front with regional movie offerings, but its original content is again catered towards the urban middle class.
Balaji telefilms targeting I think was spot on in their targeting in their AR:
“While, there is a plethora of content available on digital media, today. Most of it is foreign content or
content duplicated from existing television shows or content addressed to the English speaking, urban, educated, millennial population. There is a dearth of original content, which will appeal to different age groups, socio - economic strata and to the millions of new Indians residing in the category B/C towns of the country. It is this gap, which ALTBalaji is gearing up to fulfill. Firmly rooted in Indian-ness, this sort of content will transcend the barriers of age, class & location; where there will be something for everyone in their language of choice”
Or as I saw Ekta Kapoor put it as such : they are “targeting audiences between Narcos and Naagin”.
The Narcos watchers being an insignificant no., but those who are willing and have wherewithal to pay. The Naagin watchers already being catered to on TV , being geared to families and show format itself not necessarily amenable to binge watching.
- shemaroo+ balaji should be a nice combo to ride this theme of catering to this market , with allocation based on what one is more comfortable betting on , shemaroos library distribution model or balajis content generation and b2c business.
disc . invested in both
Dear members, inventor days & cash conversion cycle is increasing yoy (on ratestar). Which means inventory is getting piled up.