Participatory content- Project Report

Participatory Content Programming Indian Television-

Current Status and Scope

MANIPAL UNIVERSITY WHISTLING WOODS INTERNATIONAL

Research project submitted to the Manipal University and Whistling Woods in partial

completion of

IV Semester, MBA in Media and Entertainment

By

Mr. Shashank Aggarwal

Under the guidance of

Mr. John Lee Jr.

Faculty

DEPARTMENT OF MEDIA AND ENTERTAINMENT

MANIPAL UNIVERSITY

WHISTLING WOODS INTERNATIONAL

1

MUMBAI

DECLARATION OF THE STUDENTI, Shashank Aggarwal, hereby declare that the work, which is being presented in the project entitled “PARTICIPATORY CONTENT PROGRAMMING INDIAN TELEVISION- CURRENT STATUS AND SCOPE”in fulfilment with the project requirement for MBA in Media and Entertainment during the year 2010-2011, is an authentic record of my own work and carried out under the supervision of the guide Mr. John Lee Jr., Faculty at Whistling Woods International.

2

CERTIFICATE FROM THE GUIDE / CO-GUIDE

DEPARTMENT OF MEDIA AND ENTERTAINMENT

MANIPAL UNIVERSITY WHISTLING WOODS INTERNATIONAL

This is to certify that Shashank Aggarwal has successfully completed his research project

entitled “PARTICIPATORY CONTENT PROGRAMMING INDIAN TELEVISION-

CURRENT STATUS AND SCOPE” assigned by the university for MBA in Media and

Entertainment during the year 2010-2011.

Name : Shashank Aggarwal

Register Number : 092516032

3

Date :

Place :

Signature of the guide

(Mr. John Lee Jr.)

TABLE OF CONTENTS

1. INTRODUCTION

2. REVIEW OF LITERATURE

3. CONCEPTUAL FRAMEWORK

4. METHODOLOGY- DATA COLLECTION

5. DATA ANALYSIS

6. RESEARCH FINDINGS AND CONCLUSION

7. BIBLIOGRAPHY

4

ACKNOWLEDGEMENTS

5

I am firstly thankful to the faculty of Manipal University, MBA in Media and

Entertainment in association with Whistling Woods International for giving me an

opportunity to carry forward this project work. I am indebted to Mr. John Lee Jr., my

guide in this entire process, for his constant scrutiny and standards thus ensuring that this

project becomes practical and successful.

Had it not been for my industry mentor, Mrs. Ru Ediriwira, CEO Castle Media and

various others from the Participatory content programming channels fraternity; my

project would have been incomplete. Many thank for their interesting insights, opinions

and positive criticism which guided me throughout my research and compilation. There

are also scores of well wishers and friends without whom this project would have

remained an ephemeral vision.

Thanks to research reports, case studies, literature, yearly financial reports and interviews

published on the internet and journals. They were indispensable for my project research

and had a key impact on my findings. I also owe my faculty at Whistling Woods and Mr.

Ravi Gupta, Former CEO Mukta Arts who helped me get in touch with the right contacts

in the industry for this purpose.

Being an upcoming trend that hasn’t been talked about much in books and journals, the

internet gave me a reason to go ahead with this project, thus instilling in me inspiration

and enthusiasm.

CHAPTER 1: INTRODUCTION

6

1.1 PROJECT TOPIC

“PARTICIPATORY CONTENT PROGRAMMING INDIAN TELEVISION-

CURRENT STATUS AND SCOPE”

1.2SUBJECT MATTER

Interactive Television

Rapid changes in the television environment, arising from the growth of digital TV

services and the proliferation of new media technologies, continue to transform the

competitive dynamics and economics of broadcasting. Broadcasters are increasingly

looking to implement new content and non- broadcast strategies to capture audiences,

extend their lifespan beyond the living room and secure new revenue streams. They also

aim to reduce expenses, clarify viewer data and have access to virtual viewer data.

Participatory content firms have come up who develop, aggregate and distribute an

extensive portfolio of mobile and participatory TV applications that leverage the evolving

use of mobile phones and the web to provide a personal entertainment experience and a

new revenue source. New proprietary formats and solutions capture new telephony-

based and web-based transactional income streams that share the revenues generated by

viewer participation.

Participatory Television

7

Simply defined, participatory television content prompts a viewer to participate in a TV

show using some form of interactivity and in the process turning a passive viewer in to an

active user of content. Today, the predominant interactive medium enabling this

participation is the mobile phone in India.

A prime example is a show Bid2Win on NDTV Imagine, which received 30 million

responses from 2.5 million individuals within span of one year.

Usually the producer of such shows buys slots on the channel for late night viewing and

dead band viewership at low rates. The producer then urges viewers to participate in the

contests, games, etc through pursuasion tools, rewards and gratification factor which is

basically called as ‘pull mechanism’ in marketing terminology.

Indian Mobile Subscriber Base Passes 800 Million Mark

India's telecoms regulator, TRAI has reported that the number of telephone subscribers in

India increased to 846.32 million at the end of March 2011 from 826.25 million at the

end of February 2011, thereby registering a monthly growth rate of 2.43% in the first 3

months of 2011. This was published in the FICCI-KPMG media report, in their March

2011 release.

8

The share of Urban Subscriber has declined to 66.65% from 66.72% in March 2011 as

compared to Feb 2011 where as share of Rural Subscribers has increased from 33.28% to

33.35%. With this, the overall Tele-density in India reaches 70.89.The overall Urban

teledensity has increased from 154.01 to 157.32 and Rural teledensity increased from

32.95 to 33.35.The total wireless subscriber base increased from 791.38 million in

February 2011 to 811.59 million at the end of March 2011, registering a growth of

2.55%. The share of Urban Subscriber has declined to 66.30% from 66.36% where as

share of Rural Subscribers has increased from 33.64% to 33.70%. The overall wireless

Tele-density in India reaches 67.98.

Wireless subscription in Urban Areas increased from 525.17 million in February 2011 to

538.05 million at the end of March 2011. Rural subscription increased from 266.21

million to 273.54 million. This shows higher growth in Rural Subscription (2.75%) than

Urban Subscription (2.45%). The Urban wireless teledensity has increased from 146.72

9

to 150.06 and Rural teledensity increased from 31.90 to 32.75. Private operators hold

88.01% of the wireless market share where as BSNL and MTNL, two PSU operators hold

only 11.99% market share.Mobile Number Portability requests has increased from 3.83

million subscribers at the end of February 2011 to 6.4 million subscribers at the end of

March 2011.

SMS VAS in India – Perspective

Indians use SMS for all sorts of reasons from receiving jokes to checking on flight status

to enquiring about exam results. It’s a very powerful medium for getting in touch with

people without soliciting a backlash as seen on phone calls. It’s effective for getting the

message out to potential customers or retaining existing ones. Some key points of this

report are:

1 in 5 urban Indians have used a SMS based VAS service either as a one-off or on

subscription basis

SMS is an effective marketing tool, showing conversion rates a lot higher than

other conventional mediums i.e. TV/Radio etc. 1 in 3 Urban Indian has acted in

some manner over the SMS i.e. forwarding to others or enquiring about it.

SMS, an advertising medium, has an interaction rate of around 5%

A quarter of urban Indians have participated in some sort of SMS contest, a

valuable tool for getting consumers involved with products/services

10

Most Popular SMS VAS Usage

Receiving jokes via SMS on phones is the most popular SMS VAS service, subscribed by

1 in 2 SMS VAS subscribers followed by Astrology (47%), News alerts (44%) and Jobs

(43%).

Indian TV industry has shown continued growth in reach (FICCI)

Television industry unable to match global counter parts in revenue and profits but

potential for growth India is the world’s third largest TV market with almost 138 million

is growing optimism in the industry. There will be great demand for Television from

Households next to China and USA. Cable and Satellite (C&S) for satellite bandwidth

with the introduction of HD channels, the (C&S) penetration has reached close to 80

percent with the HITS platform, existing DTH channel expansion plans and new soaring

growth shown by the DTH platform. New technologies channel launches, and VSAT

services were also key drivers. The consumers in India like High Definition (HD), STBs

11

(Set Top Boxes) with inbuilt less amenable to paying for content, compared to

counterparts in recorders and delivery platforms like mobiles are rapidly evolving, other

countries representing a gap which can be addressed. In creating further opportunities for

innovation and growth in advertising, only 10 percent of advertisers on print advertise on

television currently and a portion of the remaining 90 percent still The television and

broadcasting industry has grown tremendously and could be tapped for further growth of

the medium over the last two decades, with an average growth rate in double digits. The

industry added almost 100 million viewers in 2010 to reach 600 million viewers and

crossed the 550 channel mark from 1 460 in 2009. New players are entering the market

with niche offerings like food channels and more channels in English Entertainment

space. Viewers are able to access niche content easily on DTH platform even in smaller

markets.

Average Time Spent on Television

Average daily time spent on TV is still low in India with two hours in a non metro market

and 3 hours in a big metro market because in smaller towns capability and willingness to

watch TV exists but the supply of power is an issue. In the US, the average daily time

spent on TV is close to 5 hours in spite of fragmented viewing and in Asian countries like

Philippines, Malaysia and Indonesia the average time spent watching television is higher

than in India

12

Content Production for Indian Television

Content production is expected to grow at a CAGR of 15-20 percent for next 2-3

years

Growth is expected to be driven by a sharp increase in number of new channels

and the intrinsic need for differentiated content as these channels compete for the

limitedtime share and mind share However, key challenges likely to be facedare:

- Consistency of programming quality providing some visibility in earnings

- As differentiated content needs to be unique, scalability (beyond

translating into different languages) is a challenge.

- Low entry barriers

1.3 SIGNIFICANCE OF THE STUDY

Participatory content is a new phenomenon in India and the potential to earn revenues

through this method is huge. There are several shows increasingly coming up with

innovative formats to tap potential revenues from users and viewers.

13

It is easy to produce

Slots are cheaper to buy on television at these times

500 million active mobile users across 134 cable and satellite homes in India

Higher ARPU’s in participatory content

Instant realization of revenues

Potential for a full time channel to come in

Great potential for revenue stream partnership with telecom operators

Greater share of revenue with the producer as compared to the teleco- copying

the western trend

Stakeholders in the project

a. Participatory content producers

b. Production houses

c. Television Channels

d. Consumers

e. Telecom operators to provide platform

f. Advertisers who can integrate their product benefits in the game and generate

goodwill through prizes

1.4OBJECTIVES OF THE PROJECT

a.To Study how Participatory Content is currently doing in India

b.To study the various platforms on which participatory content can work

c. To probe into the future of participatory content (challenges and opportunities)

14

1.5 HYPOTHESIS

Participatory content in India has the potential to generate huge revenues for broadcasters

provided the format is innovative and alluring to the consumers who would participate.

1.5LIMITATIONS OF THE STUDY

Time

The project was carried out in a short span of 1 month thus making it a challenge to

conduct comprehensive research.

Geographical

The Geographical location for this study lies in Mumbai, thus making it difficult to go out

to other cities (where certain channels are based) and get relavent information that may

be useful to the project.

Sensitive Nature of Information

Participatory content programming is a specialist service where not many people have

forayed into. Hence, data and research material in this area is difficult to acquire due to

the sensitive nature of information. Also, reports are confidential and certain numbers

arent revealed that could be extremely indicative of the end result.

15

CHAPTER II: REVIEW OF LITERATURE

1.1LITERATURE

'Interactive TV will be the next big wave in India”, CEO Endemol

(Sept 2008, Times of India-Excerpts)

What will be the next big wave in programming?

Absolute reality is the next big wave in prime time viewing. By absolute reality I don’t

mean reality packages around song and dance but gripping stunts and Fear Factor kind of

shows. These are not simulated shows but those that involve throwing people in a

situation and studying their responses. A good amount of time will be invested in ideas

that are going to distract the eye.

In fact, with Fear Factor and Bigg Boss 2, we have successfully moved reality shows

from weekends to weekday prime time viewing. We are in the process of spreading the

reality bug. Among the shows we are working on are Wipe-out, Divided and Golden

Cage. Wipe-Out is an “obstacle” show with humour. We have the obstacle facilities in

Argentina and the US. Divided, meanwhile, involves three participants and how they

divide the cash prize among themselves. It’s a new format; Divided is currently running

in the Netherlands. Then there is Golden Cage, where wannbe millionaires spend time in

a luxury villa.

The other big wave will be Interactive TV. Currently, viewers vote-in and vote-out

people from TV shows with the help of their mobiles. Soon, the next level of interactive

16

TV will be launched, where viewers will have direct access to the anchor of the show.

These will be low-cost game shows, cookery and lifestyle shows made for the pre-prime

time slots where viewers can participate more actively.

Will you get into mythologies?

Mythologies with good production values are doing well. Good production values are a

function of adequate pre-production time and not spending big amounts, as seen in some

cases. Currently, we are exploring other subjects in the area of fiction. We are not at an

advanced stage of research and pre-production with mythologies. But we can fast-

forward if a client seeks our production quality and storytelling in the area of

mythologies.

OBSERVATION: Though the article was pulished in 2008, interactivity in operations is

seen. TV News channels, vote-in shows, citizen journalism, participatory content

programming, interactivity on movile platforms, etc has happened in a big way.

India’s First 24x7 Participatory Channel to come up: Mr. Pankaj

Thakar - CEO & Founder, Cellcast Interactive India

(Jan 2011, Business Standard)

1. To start with, what was the inspiration behind your idea of a 24/7 participatory

channel?

Cellcast Participative content is being accepted widely and we feel that there is lot of

scope to expand our portfolio of products. This could be challenging as some of them are

very niche and as a genre, not represented at all. For e.g. Jobs and quizzes. There is no

17

TV channel that allows viewers at large to know about Job opportunities or allow

companies to advertise various positions available. With our own channel, we can

provide such content to young audiences. Similar is the case with matrimony,

Edutainment etc.

2. Most of the interaction happens in reality shows or quiz shows where the

audience either answers questions or judges the contestants. So are you coming out

with some similar shows or are you going to make it on a strictly gaming basis

throughout?

Our portfolio covers many genres and the focus is to let people interact with their mobile.

We have reality shows, Quiz Shows, Astrology Shows, Matrimony shows, Fictional

Shows, Job Shows etc. The one thing common in our shows is that they are viewer driven

& the viewers at home control participate & are integral part of the content.

3. A lot of channels already have a loyal audience who watch their shows and

participate in them? What is your strategy that is going to help you garner their

loyalty towards you?

Cellcast content is participative in nature and the viewers are integral part of the content

and hence their engagement level as well as involvement level is very high. The viewers

have huge sense of belonging and they always feel that they are part of the show. Once

that happens, the viewers stay associated with the content.

4. Reality shows, Quiz shows, Astrology, Guess the winner etc. All these include the

audience interacting via sms and include their money in return for attractive prizes

18

or their judgment being heard. What are the contents in your shows that will lure

them to come and take part 24/7?

Cellcast television shows are primarily showcases for its product & Services. We offer

viewers high value proposition through our products & Services which are hugely

appreciated by viewers at large. Since these products & services can be consumed via

mobile, the viewers end up using them round the clock repeatedly be it Astrology service

or matrimony service or auctions or quizzes etc.

5. What is the estimated amount that Cellcast is going to invest in this new channel?

The majority of investment will be in distribution. Cellcast will reach 70% of the cable

market and 100% of DTH market. On the production side, Cellcast already has four

studio floors and hence we do not see major investment on infrastructure side.

6. Throw some light on the revenue generation model of your new channel. What

are the sources of funding apart from the income from messages? How will you

monetize this unique concept in the Indian broadcasting space?

Cellcast content is highly engaging and we are hopeful that various brands and

advertisers will find high value in advertising on the channel. The good news is that we

will have very restrictive advertisement on the channel and therefore all advertisers will

get high visibility. Further, since Cellcast content is direct to consumer, the opportunity

for brands here is to integrate their products & services with the content. In past we have

done that successfully and we hope to offer even higher value by providing personal

touch to the brands via mobile advertising.

19

7. Tell us something about the programming line-up of the channel. Also explain

about the production set up for the content?

Most of Cellcast content is live and as stated earlier, we have four studios of our own. We

have over 75 people involved in production process and each one of them is highly

motivated by the sheer thought of having our own channel as they feel that we will be

able to experiment more and thus churn better content every time.

8. How do you see the future of Participatory Channel in the gamut of so many

established channels already competing hard in the Indian broadcast arena? What

is your initial strategy for the acceleration of channel in first few months of launch?

An interactive participatory channel offers active viewing to millions who expect more

from television. They are the ones who want to lean forward and participate. That in itself

is a huge differentiator. We'll be putting some serious resources around distribution and

reach out to the millions of existing participants on Cellcast. The idea is to build in

virality in everything we do!

Participatory Gaming, the next interactive TV innovation, Pankaj

Thakkar

“The differentiator for the new channel will be the participatory format with a diverse

content. No other channel is offering this kind of content, and I don’t see them coming up

with something like this. The Indian audience is deprived of it for which we need a

channel of our own,” Thakar says. “We will have a show on employment which will be

supported by interactive modes, where we will cater to a specific set of viewers. Also, we

20

will also have shows like Whodunit, where the audience can be the detective, participate,

and thus can win prizes.”

A 125-member team is in place to look after the creative as well as the programming side

with subject-specific experts. There won’t be plain vanilla commercials on the channel.

“We won’t have the 10-, 20- and 30-seconders on our shows. We will give higher

visibility to the advertisers with lower cost. We will integrate their brands with us. As

there will be no spots, we will provide the platform of 360-degree offering to the

advertisers,” says Thakar.

The target group will be the audience that doesn’t want soaps or reality shows but

something different. One major impact that participatory television programming has had

is that it’s made late-night television viewing somewhat interesting. Instead of being

forced to watch repeat telecasts of TV shows, the audience will now have the chance to

watch and participate in the interactive television shows. “In the soaps, you have got

someone else to tell you the story. But here, you are very much going to be a part of the

show. With 3G service coming in, you can make video calls to have to-and-fro

communication,” says Thakar.

According to analysts, there is a demand for segmentation in TV content in India. For

instance, on the cards is Alva Brothers’ Food First, the only television channel dedicated

to food and food-related experiences, sometime in early 2011. “The trend is shifting

towards the niche category as viewers are more demanding, and want choice” says an

analyst.

21

SMS: A New Revenue Source for the Media

(Sumanth K. Garakarajula, September 11, 2009- PTI)

Indian news and entertainment media have found a new revenue source, SMS; mobile

text messages. Under the guise of seeking ‘opinion’ newspapers, news and entertainment

channels are making millions by asking the audience to respond to some issues popping-

up on their screens. The media, as public service institutions ought to raise public issues.

On the contrary, they have started exploiting the public. Thanks to SMS technology for

making users pawns in the revenue generating game by the media and the mobile

carriers.

Generating a poll for each news bulletin and seeking responses through SMS, makes the

news media richer by Re.1 for per text message. The revenue generating secret is simple:

the cost of each text message, three rupees, is being shared by the news media

organization and the mobile service providing company.

According to Telecom Regulatory Authority of India, tele-density, number of phones per

100 people; in India is close to 40 percent and the rural tele-density is as low as 1.74

percent. Mobile phones, the only source of text messages, are concentrated in the urban

areas and thus excluding a large section of the Indians from participating in the survey.

The Active Media Technologies, a company which provides the SMS software solutions

for the news media organizations, claimed that the company generated 14 lakh SMS’s

over a period of 4 weeks for a newly launched news channel in 2002.

22

The IndusView, an Investment company, quoting the research study commissioned by

Associated Chambers of Commerce & Industry of India (ASSOCHAM) in May 2007,

estimated that interactivity through SMS is big source of revenue for the news channels.

All the national news media have established separate divisions to tap the mobile content

market.

The study further quoted, Sony Entertainment Television (SET) received 55 million SMS

for the first version of Indian Idol generating an income of Rs.16.5 crores out of that SET

made about Rs.5 crores. SET claimed that it received 6 lakh SMS’ in just three hours

after Indian Idol opened in 2004. KBC received more that 120 million SMS’ and phone

calls; Naach Baliye, a dance show by Star TV earned 1 million SMS’; Sa Re Ga Ma of

Zee TV 1 lakh SMS’ per day, Sun Network receives 50,000 – 150,000 SMS’ per day.

A news channel squeezed maximum revenue from the sensation of Gudiya-Arif-Taufiq

trio story. Controversy arose when Arif, who was held by the Pakistan Army as a

prisoner-of-war for five years, returned to India and found his wife, whom he was

married just for 10 days before he went to Kargil conflict and subsequently captured by

the Pakistan Army, married to another man-Taufiq. The News channel conducted a SMS

poll, ‘Who should Gudiya stay with?’

23

1.2LITERATURE ANALYSIS

Interactive Television in India is expected to kick off and become the next biggest wave in India. Prime time slots will also have interaction where viewers will be actually able to interact with the host and participate in shows. It will be the era of the common man to come on Television. Also, this will use pull strategy rather than push strategy.

A full time channel with Participatory Content Programming will emerge in Indian Television since it makes much more sense for Cellcast to own its channel given the amount of response it has got. A UK research for Cellcast says that they achieved 300% more revenues through participation than advertising could have received for the slot they played their show on. Also, Cellcast has various innovations in programing and given the number of hours of original programming they have currently, it makes much more business sense for them.

Participatory gaming will also find huge takers and it can be based on augmented reality through bluetooth. Chat function will also be open so that users can interact. This format is expected to be successful due to the large gaming population and moreover the large youth population in India.

The number of mobile subscribers has been on the increase and the amount of smartphones, penetration of 3G, lowering costs of handsets and services will all combine together to provide a favourable environment for Participatory television.

SMS and TV has always been a happy marriage right from the reality show boom like Indian Idol where one had to vote for his/her favourite contestant through SMS. It is infact the biggest contributor to MVAS and is expected to increase.

This format has worked abroad in the UK and the current Indian shows have also been very successful. Also, it is promising to the stakeholders in the value chain.

24

1.3 DETAILS OF STUDIES DONE IN THE SUBJECT AREA OF

RESEARCH BEING CARRIED OUT

a. Going interactive is the future for Indian television (ITVT, Dec 2009)

Interactivity and personalization will be the future of Interactive Television

b. Cellcast research shows 300% more revenues than advertising for the same

slot

An In-house research by Cellcast has shown that they earned 300% more

revenues than regular advertising on the slot they showcased their format.

They have shown to broadcasters that what was not prime time can be

nearly prime time.

Also, revenues from participatory content have been very high as

compared to subscription and advertising.

c. SMS to TV sets a new revenue model for participatory content producers

(ASSOCHAM)

The IndusView, an Investment company, quoting the research study

commissioned by Associated Chambers of Commerce & Industry of India

(ASSOCHAM) in May 2007, estimated that interactivity through SMS is big

source of revenue for the news channels. All the national news media have

established separate divisions to tap the mobile content market.

25

CHAPTER III: CONCEPTUAL FRAMEWORK

What is participatory content?

Simply defined, participatory television content prompts a viewer to participate in a TV

show using some form of interactivity and in the process turning a passive viewer in to an

active user of content. In India, the predominant interactive medium enabling this

participation is the mobile phone.

A prime example is a show Bid2Win on NDTV Imagine, which received 30 million

responses from 2.5 million individuals within span of one year.

Usually the producer of such shows buys slots on the channel for late night viewing and

dead band viewership at low rates. The producer then urges viewers to participate in the

contests, games and quizzes through pull mehanism.

Distribution Platforms

SMS, IVR, WAP & Internet

TV, Radio, Print , Internet, Mobile, Smart Devices

How is it significant to New and Interactive Media?

It is of extreme significance to the New Media domain as the various vehicles of New

Media are involved in revenue generation using traditional media platoforms.

The market is huge! Television channels are now warming up to the fact that interactive

television programming actually retains their viewers and are now looking at new genres

26

of participatory content.The viewers can now also use the remote on the TV set for the

interaction in case of IPTV instead of his mobile phone.

How are revenues earned?

Participatory content companies are in the business of providing premium content and

services to customers. They create their own interactive formats, programming and

participative content and reach out directly to customers via television, print, web and the

mobile. The interactive medium and the billing mechanism in all cases is the mobile

phone.

SMS, IVR, the Web, WAP and 3G are the key drivers for revenue generation. TV is used

as a mass medium while internet and radio too are used extensively for this purpose. It

uses traditional media like television, newspapers and radio for customer acquisition and

new media to enable consumers to pay-and-participate. Companies like Cellcast have

successfully executed this unique business model in India and are experiencing rapid

revenue growth.

Cellast’s trivia-based TV game shows and astrology shows are pretty popular. The

engagement levels in these shows are pretty high with high repeat users. We generated

over Rs. 100 crores for our partners

Who are the content producers, channels and how do consumers interact?

Content producers are companies that come up with innovative formats and apps.

Channels are broadcasters with whom these content producers tie-up on a slot sale

model to pla their show and earn revenues

27

The mobile operator tie-up with him is needed for enabling people to send

messages to the short code from their connection.

Interaction is done through SMS, IVR, WAP, GPRS, etc

What is IVR short code?

IVR (Interactive Voice Response) short code can be defined as special telephone number

which has ‘less’ digits in it than traditional full length telephone number. This kind of

special ‘short code’ are mainly used for special purposes like customer care for

telephone/mobile subscribers, VAS ( Value Added Service) access either SMS/MMS

( Short Messaging Service/Multimedia Messaging Service) or IVR based, public utility

services etc.

With recent ‘VAS boom’ all around the world in telephone and mobile industry, short-

code has become quite well known and many people want to ‘have’ it! While, short code

is nothing but telephone number with less number of digits in it, it has become very

special as it is always associated with some special service as well as special charging for

calling to it! For any VAS short code, it is charged premium while for any customer care

service, it is free of charge for the caller.

Different countries have different policies about short code used for IVR access or

SMS/MMS access. Normally any short-code has length of 5 digits and can have

customisable suffix for specific service.

28

Advantages of a short-code

Short codes work as just like any telephone/mobile number. But the main advantage is, it

is short so it is easy to remember.

Customer Care numbers are widely publicised by telephone companies and these short

codes grow to become brand for any telecom company. Likewise, value added service

providers also build their brand around the short-code for the services they provide and

try to make them popular. For example, 56969 is SMS as well as IVR shortcode for

Rajasthan Patrika Pvt. Ltd. in India which offers many value added SMS and IVR

services through this short-code.

Apart from being short, these short-codes also tend to be vanity number. For example

58888, 56969, 54321 which have some interesting pattern and easy to remember.

Sine it is short number, it is faster to dial or send SMS. Apart from advantages of being

short and faster to dial, I could not think of any other advantages. Many people may think

short code as vanity number and associate it with pride.

Disadvantages of Short Code

The main disadvantage of short-codes is it is completely telecom company dependent.

Shortcodes are accessible within the home network only. In order to make the short-code

accessible in all operators across the country, the short code needs to be configured in all

the operators. For example, the short code 56969, it is registered by Rajasthan Patrika

Pvt. Ltd. in all mobile operators in India in every circle. That is why it is available in all

networks in India. This activity of registering the shortcode in all operators ( in India, we

29

have more than 12 mobile operators) and the allocating software as well as hardware

resources to for connectivity to each of them is quite cumbersome and time consuming

affair. Most of the time, mobile operators may not allocate the desired short code or

simply refuse to allocate one.

But a long code or traditional phone number is accessible by all telecom subscribers

without having to register with multiple telecom operators.

Revenue Sharing

Normally, apart from the short codes used for customer care services, all other short

codes are used for value added services and so charged premium. The revenue generated

are shared by telecom operator and the value added service providers.Usually the share

between the content produer and telecom operator is 60:40.

Short code for IVR

Short codes are being used IVR portals ( popularly known as voice portal) which provide

many value added services or utility services. Popular TV reality shows, Contests

generate lot of revenues from this kind of IVR short codes from participants. But this

kind of short-code would be accessible across country and all telecom networks only

when the short-code is registered with all telecom operators. This need huge initial

investment in terms of hardware and software as well as recurring expenses.

So, those who do not want to invest more initially and start any IVR service quickly, they

may opt for long code or normal telephone number with E1 connectivity form single

operator. It may not be possible to charge callers premium and work like a VAS to

generate revenues.

30

Participatory content channels announced in India-

Cellcast Interactive India Pvt. Ltd.

Positioning- Mass content which aims at alluring the user and using pull technology to

respond to the content.

Content-– Reality shows, Quiz Shows, Astrology Shows, Matrimony shows, Fictional

Shows, Job Shows, Bollywood Bonanza, Gold Safe, etc

Distribution- TV (Cable, IPTV, DTH, CAS), Mobile, Internet and smart devices

Target Audience- Across India (People with mobile)

Chief Revenue Streams- SMS, IVR, WAP, Profit-sharing revenues with mobile

operators

SWOT Analysis of Cellcast’s Channel

Strengths

• Excellent funding and support Canaan Partners

• Great positioning and content

• Target audience is massy and can attract GEC audiences

• Has tried and tested formats

• Has worked well in UK and India

• Has good relationships with telecos and partner TV channels

• Has the best talent on board

31

Weaknesses

• Doesn’t have a strong distribution

• Channels fear change in brand perception by inclusion of their shows

• Doesn’t enjoy a strong brand name and needs to market itself aggresively

• Content doesn’t have a positive image in the minds of the viewers

Opportunities

• Possibility of generating transparent and assured revenues through partiipation

• Innovative formats can lure customers

• Great potential to partner with advertisers

• Can go in for tie ups with other channels and increase reach for their in-house shows

Threats

Lots of TV Channels and entertainment content available

High carriage fees

Making a presence across all distribution platforms

Formats are relatively inexpensive to make and the entry barriers are low here

Negative brand perception for certain shows

Competition

32

CHAPTER IV: METHODOLOGY-DATA COLLECTION

1.1 Qualitative research

Qualitative research seeks out the ‘why’, not the ‘how’ of its topic through the analysis of

unstructured information – things like interview transcripts, open ended survey responses,

emails, notes, feedback forms, photos and videos. It doesn’t just rely on statistics or

numbers, which are the domain of quantitative researchers.

Qualitative research is used to gain insight into people's attitudes, behaviours, value

systems, concerns, motivations, aspirations, culture or lifestyles. It’s used to inform

business decisions, policy formation, communication and research. Focus groups, in-

depth interviews, content analysis, ethnography, evaluation and semiotics are among the

many formal approaches that are used, but qualitative research also involves the analysis

of any unstructured material, including customer feedback forms, reports or media clips.

Collecting and analyzing this unstructured information can be messy and time consuming

using manual methods. When faced with volumes of materials, finding themes and

extracting meaning can be a daunting task.

1.2 Quantitative Research

In the social sciences, quantitative research refers to the systematic empirical

investigation of quantitative properties and phenomena and their relationships. The

objective of quantitative research is to develop and employ mathematical models,

theories and/or hypotheses pertaining to phenomena. The process of measurement is

33

central to quantitative research because it provides the fundamental connection between

empirical observation and mathematical expression of quantitative relationships.

Quantitative research is used widely in social sciences such as psychology, economics,

anthropology, and political science. Research in mathematical sciences such as physics is

also 'quantitative' by definition, though this use of the term differs in context. In the social

sciences, the term relates to empirical methods, originating in both philosophical

positivism and the history of statistics, which contrast qualitative research methods.

Qualitative methods produce information only on the particular cases studied, and any

more general conclusions are only hypotheses. Quantitative methods can be used to

verify, which of such hypotheses are true.

A comprehensive analysis of 1274 articles published in the top two American sociology

journals between 1935 and 2005 found that roughly two thirds of these articles used

quantitative method

In the project, “Participatory Content Programming Indian Television- Current

Status and Scope: opinions of people connected with Participatory content, media

experts, observers from the broadcasters and any relavent people have been obtained to

get a sense of what lies ahead for the industry.

34

Primary data

1. Interviews of Eminent people from stakeholders involved in Participatory

content programming (In co-relation with the Objectives of the project)

Producers

TV channels

Secondary data

Secondary data is collecting and possibly processing data by people other than the

researcher in question. Common sources of secondary data for social science include

censuses, large surveys, and organizational records (Mintel). In sociology primary data is

data you have collected yourself and secondary data is data you have gathered from

primary sources to create new research.

In terms of historical research, these two terms have different meanings. A primary

source is a book or set of archival records. A secondary source is a summary of a book or

set of records.

Advantages to the secondary data collection method are –

1) It saves time that would otherwise be spent collecting data,

2) Provides a larger database (usually) than what would be possible to collect on ones

own

Secondary data Included

35

1. Bytes of eminemt people from television

2. Earnings Report

3. Research Reports

4. Case Studies

Validity & Reliability

1. The data has been self collected and interpreted here. Utmost care has been taken

to put in all aspects of the personal interaction.

2. The secondary data collected is from Web & Printed articles from reliable

sources.

3. The financial numbers so quoted are from respective websites and articles

published.

CHAPTER V: DATA ANALYSIS36

1.1 PRIMARY DATA

A. Mr. Saurabh Chakrabarti, Associate VP, Cellcast

What do you think is the current status and future of interactive Participatory content as compared to regular programming on TV channels?

The current status of Participatory content is seeding and this is in its blossoming

stage in India, after UK. We are discovering it more and it is growing with new

innovations coming in. The scope is huge across all platforms and the growing

number f mobile base approx. 800 million as well as our TV audience which is

close to 700 million shows that there is a huge potential in the future for

participatory content. We also aim to come up with a full time television channel

for the same.

What are the advantages of interactive content programming?

Interactive content uses pull mechanisim where the user knows what he is paying

for and participates with attention, loyalty and his own will rather than

traditional TV which is subscription based and wherein he might not be paying

for what he necessarily wants. Since that is push mechanism, participatory

content programming is advantageous. Also, it is interactive just like Facebook

and Twitter. That is the USP. Also this has proven to channels that their dead

bands actually have a large viewer base which can sometimes be close to their

prime time viewership.

37

What is the approx Revenue Sharing ratio (Producer, Short code service

provider, Channel). Also how much does a slot at a midnight deadband cost?

Usually the revenue sharing ratio with the channel is just the slot cost. A slot on a

particular day can cost anything between 1.5 to 3 lakhs depending on the channel

and its reach. However, it varies between anything from 15-50 percent for us with

the mobile operator whose platform we use to interact with the TV content

through SMS, WAP and IVR.

How do you measure success of the app? Is it through SMS numbers or

revenues or TAM ratings?

We measure the success through the response received in terms of SMS and IVR

call ins. We do not use TAM for this purpose.

Do you think that the introduction of such formats can lead to a brand perception change?

No, channels do not reject us due to the fear of brand perception. They are very

much willing to offer us slots if we ask them for it.

What all distribution platforms does this format work on? (TV, Mobile, Internet, Playstation, Nintendo)

We are trying hard to come up on all platforms and ensure a 360% presence. We

have tapped the TV space, internet and mobile areas. Also, we can have our

presence on different devices that use Apps like ipod, nintendo, xbox, ipads, etc.

38

What are the key challenges and opportunities of participatory content in

India?

Key challenges for us are to acquire slots on channels at the time we want them

for. Channels have not been able to necessarily provide us with slots in the day

time since they have their own needs. Opportunities are immense and on different

platforms. We are also enabling more people to participate at once and thus

increase the opportunity for them as well as us.

b. MRS. RU Ediriwira- Ex. National IT Head, INX

What do you think is the current status and future of interactive

Participatory content in terms of generation of revenues for content creators

or TV channels?

Participatory content, in the real sense of the term is at a very nascent stage and

channels have begun to experiment with it as it is important as an involvement

tool and also as a revenue stream. The future is very bright and the responses

received through some of the apps that we integrated on our channels like 9XM

have garnered huge responses from audiences helping us with good revenues.

Advertising and subscription will however remain the key sources though

interactive apps or formats are an important source depending on the position

and specialization of the channel or content creator. (Ex. A company like Cellcast

will depend solely on SMS, IVR, etc for their revenues while a channel which is

39

not into mainstreat interactive content will chase the traditional sources of

revenues)

What are the advantages of interactive content programming? Is it cost

effective? How much does an average Tickr app cost or an Interactive format

for TV?

Yes absolutely, interactive apps or formats that we had on INX were very cost

effective. It brought our programming costs down and also helped us to earn

revenues at the position we were in. We were an upcoming channel then and we

paid them producers on rental basis rather than buying the app. The costs to us

for a Tickr app were pretty low for some of them. It was surprising. Also, we took

them on a rental basis rather than buying them totally .


provider, Channel?)

There is an agreement worked out with the channel and the content creator. The

short code is usually separately obtained or created. The operator will always

have a major share in the revenue pie. That is the way it has always been and

changes are unlikely unless smart deals are negotiated.

How much does a slot cost to the producer in case an external agency is doing

it (ex. Goldsafe by Cellcast) and what is the average break even period for a

format or app?

A slot is negotiable and is booked by the sales team. However, it comes for a

much lesser rate of since the slot is usually purchased at the dead band. The

40

break even depends completely on the cost of the format. Certain apps can be

easily developed while some may be a bit complex and comparatively expensive.



The measurement is done through the number of SMS received since each SMS

gives the channel certain amount of revenue. We got a huge response then and

were satisfied with the outcome of the efforts we put in. Certain Tickr apps like

Quiz where the users had to guess the celebrity name or movie, or apps like love

compatibility meter gave us huge SMS revenues. Also, astrology has a huge

demand. TAM ratings are a bit tricky for apps since there is something else

playing on the TV set. Usually it is the SMS or IVR minutes that are measurement

tools.

Do you think that the introduction of such formats can lead to a brand

perception change (Negative brand perception)

Yes, very true. We did certain Tickr formats at the lower end of the screen in a

legal way as per the guidelines and ensured that all the rules are considered

before we put it on air. We always had data regarding the number of SMS coming

in and we ensured that a user can send a specific number of messages only so as

to make it fair. Also, the prizes were decided in a fair manner through the

software. We also had auditors for the same who could present the reports and

ensure all legalities are in place. However, we were careful not to go in for slot

sale shows as they did not sync with our brand image and we suspected it would

hamper our image somewhere.

41

What all distribution platforms does this format work on? (TV, Mobile,

Internet, Playstation, Nintendo)

These formats can work on all these platforms if innovative customized content is

created and when successful business models are in place.


India?

Mobile phone growth may increase at a decreasing raye at a particular point in

time and become flat. Also, until new formats are tried out there might be a

challenge to hook customers. Opportunities are immense and this sector is

peaking. Also people are tech-savvy and innovations are coming in. You can go in

for sponsored apps and brand tie-ups which will ensurebrand as well as

producerl sustainence and success.

c. MRS. Bhavana Chand, Content Producer-CELLCAST



and TV channels?

The current status is huge and the future growth will be phenominal in this space.

Interactivity is the new thing and the innovation that you are able to bring into

your interaction with the end user is the key driver for participatory content. For

content producers, it is definitely a huge revenue stream. If a TV channel does the

production themselves, it can be an additional revenue stream for them depending

42

on the genre. For Ex. Cellcast has plans to come up with a channel in this genre.

Now, our revenue stream will be SMS, IVR, WAP and through responses rather

than advertising and subscription.

Which channels are the biggest takers of interactive/participatory content

today and is there scope for a full time channel for the same, as Cellcast has

decided.

NDTV Imagine (now Imagine TV), ZEE, Zoom, Sun TV, Maa TV, Raj TV and

some regional channels. In the pasr we have also been associated with Sony and

INX.


India?

Challenges that we face is the reach of the television channel that we are

partnering with. Also, the channels are concerned about their brand perception. It

is their mindset. Opportunities are immense in terms of innovation. Previously the

consumer used to call in and wait for instruvtions on the IVR but now we are

giving the consumer the power and he will be able to choose from various options

by typing and will automatically get to know if he is right or wrong. Also,

previously one person could speak at a time. But, now we are coming up with

options for thousands of people to participate at a time.


effective? How much does an average tickr app cost to make or an

Interactive format for TV?

43

It is not so cost effective. But yes, certain innovative formats can come for

comparatively lesser amount. It depends on the heaviness of the application and

technology to be used.


provider, Channel)

The channel and Cellcast have a sharing agreement of 60:40 on an average. Also,

from the 40% that we get we share it with the teleco on the basis of an agreement

and on the number of responses rceived.

Who are your key competitors for interactive/participatory TV content

creation.

Cellcast is the only company in this space when you use the term Participatory

content. However, there are certain companies that develop Tickr Apps for TV

channels.

How much does a slot cost to the producer and what is the average break

even period for a format or app?

These numbers are highly sensitive but I would say on an average they would cost

anything between Rs. 50,000-60,000 at a deadband slot. Break even varies

depending on the heaviness and the costs of the format.



We generally measure our success by the number of SMS received or the number

of minutes the customer is on IVR. I would say that if we are able to engage each

customer for an average of 3-4minutes, it is a fair way to measure the response.

44

Also, the charges vary from Rs 10-12 per minute on IVR depending on the show.

We create our own short code.

What all distribution platforms does this format work on? (V, Mobile,


Right now we are only into the television space but there are instances of specific

formats who have revenue models co-inciding with the internet platform like

Bid2Win and sometimes we promote Cellcast’s services on mobile by sending a

push message to participate. In time, it should exploit all possible platforms.

Reach is key to our success.

d. MR. ATUL SHARMA, VP- TANGERING DIGITAL ENT.



and TV channels?

Currently there is a huge boom in the market for these services and T V has the

volumes for this. This is definitely going to be a huge contributor of revenues for

the stakeholders given the increasing mobile user base. The industry is huge and

the MVAS industry is approx 11,800 crore. Integrated with TV there is a great

future. 3G will enable video content also. Hence, new formats can come up.

45

Which channels are the biggest takers of interactive/participatory content

today and is there scope for a full time channel for the same, as Cellcast has

decided.

It depends on the channel and their objectives. We have worked with several

channels on their new media strategy and we expect them to come up with their

presence on new media platforms in the next 18 months time. Yes, the market for

this will be immense if the industry has all things in place like speed, user-

friendliness and innovation. TV companies like Sony are producing their own

permium content for mobile.


India?

The sector firstly needs to be very organized. Everybody does what works best for

them. There are no rules. Also, the bandwidth is a big problem. Penetration of

internet products is another challenge as it can open up a huge market. The

availability of broadband is also a challenge. But I believe that the market is still

in its nascent stage and there is a huge opportunity awaiting us once things fall in

place.


effective? How much does an average tickr app cost to make or an

Interactive format for TV?

The costs vary totally on the heaviness and technology of the applications. Some

formats are cost-effective but the budget for marketing and distribution has to be

kept in mind. Again, costs vary.

46


provider, Channel)

The telecom operators do take a major share. However, that’s the way it is and

we have to accept it. It is usually 70% (telecom), 15 % (technology partner for

IVR) and 15 % for the content producer. It can vary to 60:20:20 also in certain

cases. It is different for each deal we strike.



Here everything can be measured and the operations are very transparent.

Mobile uses pull strategy and has a much better tracking system as compared to

TAM. We can know the exact amount of IVR minutes, revenues and SMS numbers.

Also, the viral effect for videos, apps and content helps us get web analytics

reports. For the internet, the number of downloads are accurately known.

What all distribution platforms does this format work on? (TV, Mobile,


Yes, all these platforms are being exploited. The better the reach, the more the

revenue opportunity. Television channels are also coming on to all these

platforms. We have helped launch games on Xbox. However, smartphone

penetration is low in number and 3G users are still lower. This will affect us untill

costs are brought down. Internet has been flattish in the Indian story.

.

47

1.2 SECONDARY DATA

1. Bytes of eminemt people from television

CANAAN Partners- Golbal InvestorCellcast sees huge market (Invested $

5.25 million Cellcast Asia)

"There is huge and growing consumer demand throughout the world for interactive

mobile entertainment," said Maha Ibrahim, general partner at Canaan. "Cellcast is

poised to address this need throughout Asia and we are thrilled to help the company

realize a new level of success. At Canaan, we are committed to helping innovative

companies across the globe realize their growth potential and we are excited to add

Cellcast to our portfolio as our first mobile entertainment investment in India."

Pankaj Thakkar, CEO Cellcast

Cellcast Participative content is being accepted widely and we feel that there is lot

of scope to expand our portfolio of products. This could be challenging as some

of them are very niche and as a genre, not represented at all. For e.g. Jobs and

quizzes. There is no TV channel that allows viewers at large to know about Job

opportunities or allow companies to advertise various positions available. With

our own channel, we can provide such content to young audiences. Similar is the

case with matrimony, Edutainment etc.

48

2. Earnings Report

Cellcast UK audited consolidated earnings, Dec 2010- growth

Cellcast plc. announced final audited consolidated earnings results for the year

ended December 31, 2010. Revenues continued to grow during the year

increasing by 14% to £19.2 million against £16.8 million last year. Operating loss

was £0.4 million against £2.2 million last year. Loss before tax was £0.3 million

against £1.9 million last year. Loss for the year attributable to owners of the

parent was £0.3 million against £1.6 million last year. Total comprehensive loss

attributable to the owners of the parent was £0.2 million against £1.6 million last

year. Basic and diluted loss per share was 0.4 pence against 2.1 pence last year.

Net cash inflow from operating activities was £0.1 million against £0.7 million

last year. The year saw an improvement in performance following the significant

investment made in acquiring new channels in 2009. The second half of 2010

showed an operating break-even compared to a first half operating loss of

£443,000. At the end of March 2011, the company had experienced 12

consecutive months of operating profit in the UK. The company recognized the

efforts of management and staff and looks forward to a continuation of this trend,

with a return to full year profitability in 2011.

49

3. Research Reports

300% more revenue than regular advertising for Participatory Content

(Research by Cellcast UK)

The Group's specific and proprietary expertise in the creation and distribution of

interactive programming originated with the rapid growth of our business in the United

Kingdom, one of the world's most competitive digital TV marketplaces. Our interactive

programming can generate up to 300% greater yield than spot advertising in the same

time slot, with the services able to derive revenue from both editorial and allotted

advertising time.

Higher returns that revenues from tele-shopping at that particular time slot

(Research by Cellcast UK)

Interactive pay-to-play programming has likewise proven to generate significantly

higher returns than average teleshopping revenue derived from similar time slots.

4. Case Studies

a. Cellcast...from rags to riches (Motley Fool poster article)

Summary

Value of 37.5% stake in Indian interactive digital broadcasting company

likely to significantly exceed current market capitalisation of CLTV, and high

possibility of this stake being monetised / value made clear to market in 2010.

50

UK operations have developed in H2 2009 near monopoly position on

Freeview in their niche of broadcasting, and have a significant presence on

other platforms (Sky & Freesat) – should lead to very significant revenue

growth in 2010, without commensurate cost growth.

Considerable scope for cost efficiencies in Cost of Sales which could

dramatically improve profitability.

Potential value outer as bid target.

Cellcast Asia posts 400% revenue growth and record profits

b. Pull, Don’t Push – Marketing Lessons from Poultry

Pull mechanism of participatory content successful in generating revenues.

Creates larger consumer interest

Leads to interaction, attention and loyalty

Case Study:

Our website builder company, CityMax.com, was attending Canada’s largest blogging

and social media conference – Northern Voice – and wanted to make splash. Sponsorship

was briefly considered, then passed on for its ‘vanilla appeal’ and low ROI. How could

we get the bloggers and Tweeters – some of the most influential in Canada – talking

about us?

Sitting in a brainstorm session, I was inspired by a grocery store flyer advertising poultry:

why not send a person in a massive chicken suit to the conference? The idea was to

51

encourage attendees to take photos with the Chicken, and ‘tag’ themselves in our

Facebook photo gallery for a chance to win an iPad. The tagging would then re-transmit

on each Facebook user’s newsfeed to that person’s friends – a marketing chain with

potentially huge rewards.

While intrigued, I did not think this stunt would be enough to make a serious impact on

the actual conference – it would need something extra to reach its tipping point.

Conference goers would need a reason to engage with our Chicken after the initial shock

of seeing it walking around an event filled with corporate managers and business

consultants. How would we ‘pull’ in our audience?

We decided that not only would the (branded) Chicken attend all conference sessions, but

he would also communicate through Tweets and cardboard signs.

I brainstormed a series of hand-written questions for the Chicken to hold up during the

panels, which resulted in a brief public dialogue with a city councilor regarding a timely

issue – she good-naturedly responded, and the whole scene caused quite the stir.

While the Chicken was busy attending each session, I provided his voice – running

commentary on Twitter (@OfficeChicken) about the conference and responses to the fan

queries floating in the Twitterverse.

The result? Social media madness. Over 100 Tweets throughout the day were about

@OfficeChicken, attracting countless retweets, mentions and photos from some of

Vancouver’s most prolific bloggers – such as Miss 604.

52

People lined up to take snapshots with our feathered friend, building buzz to a point

where even the conference organizers decided to capitalize on our momentum, offering a

prize to the first person to “capture” the Chicken.

The end result? Chicken/CityMax-related tweets were sent out to an aggregate 50,000+

followers, and a large new base of CityMax followers was created.

The takeaways:

1) Pull content is built around your audience – not you.

We figured that most conference attendees would be like the animal mascot theme, if not

be a bit confused – and being bloggers/Tweeters, they’d probably post questions or

comments. They were also likely to be iPad fans and active on Facebook.

2) Create a strategy that includes a call to action.

What was the objective? To get tweets, photos, and Facebook tags of the people posing

with the Office Chicken. If you don’t know what you are trying to achieve, how will you

measure success?

3) Support your marketing plan with sustainability.

The entire chicken mascot initiative was supported by Tweets responding to the

comments, exponentially building upon its momentum. By tagging photos of Northern

Voice attendees on Facebook, their friends would be exposed to the Chicken and they

were welcome to comment on the experience.

53

There’s nothing easy about making your marketing PULL instead of PUSH – but there’s

a reason it pays off. When others are talking about you, rather than you selling yourself,

the credibility of your business increases drastically. Hopefully you can incorporate some

of these ideas into your business – what are your thoughts on the execution / strategy of

our initiative?

5.Press records

BID2Win becomes largets interactive reverse auction show

LONDON – March 15, 2005—The Cellcast Group, a global provider of

participation

TV applications and programming, today launched Bid2Win, its new

live interactive

reverse auction TV show, broadcast every evening in the UK on the

Game Network.

Bid2Win takes participation television to a new level, enabling viewers

take an active

role in a dynamic real-time auction using their mobile phone as the

‘backchannel’.

Each day, high-value and desirable items can be bought for pennies by

submitting the

lowest unique bid via SMS.

“It’s a compelling interactive format for a mass audience,” said

Mahesh Ramachandra, Cellcast Group Head of International Business

54

Development. “In a reverse auction, instead of prices going up and up

and out of reach, prices stay so low that everyone can participate with

confidence.”

Bid2Win is an evolution of a highly successful format pioneered by

Cellcast. Reverse auctions first gained popularity on the Internet, and

Cellcast developed the concept as

a live SMS-driven interactive television show with Star TV in India last

autumn. The resulting show received over 6.7 million bids, becoming

the world’s largest interactive reverse auction.

CHAPTER VI: RESEARCH FINDINGS AND CONCLUSION

1. Research Findings

Mobile User Base- Active Users 500 mn

The mobile user base in the country has been increasing rapidly and the number

of users in India as per March, 2011 has reached 800 mn. However, a key finding

is that the number of active users, after duplication and ownership of dual mobile

handsets is 500mn.

SMS is the highest MVAS contributor – More then 50%

Majority of revenues from MVAS come from SMS, which is the key source of

revenue for Participatory content as well.

55

Content Production has been on an increase- 15-20% CAGR

Content production is expected to grow at a CAGR of 15-20 percent for next 2-3

years.

Average time spent on TV in India is 2-3 hours

This is low compared to US who has an average of 5 hours time spent.

Current Status of participatory Content Nascent

Interviews and research done shows that the current status of Participatory

interactive content is still nascent

Future of Participatory Content postive

Research findings, interviews, earnings, case studies and social media trends

show that the future of Participatory content will be positive. Growth of

Pariticipatory content has been phenomenal and the returns have been more than

average growing year on year.

Participatory Content works on thr Pull Principle, which is proven to be

successful

Pull principle has been a successful one wherein the customer understands the

product, pays attention and displays maximum interaction and loyal participation

Participatory content can work on TV, Mobile and Internet

56

Interviews and research reports showed that Participatory content can be exploited

across different distribution platforms like TV, Mobile and Internet.

Double returns than revenues from tele-shopping at that particular time slot

Participatory content has proven to privide more revenues than teleshopping.

300% more revenue than regular advertising for Participatory Content

Participatory content can get 300% more revenues than a dead band slot

advertising revenues on television.

2.Result Analysis based on Objectives and Conclusions

To Study how Participatory Content is currently doing in India

Participatory content generates more revenues than what an advertising slot can

generate and double than what tele-shopping generates. This shows immense

potential of participatory content in India. This is a trigger and an indicator of

great coming of revenues into the industry in the future.

Currently it is in its nascent stage which means that the market size and opportunity

is yet to be explored. Some formats like Bid2Win have shown immense success

and created records. More of this is being explored and hence participatory

content is bright due to the pull principle mechanism it employs. This has been

successful in the social media model like Facebook and twitter.

Currently there are takers for Participatory content across India. Channels that have

57

involved Participatory Content as a part of their programming are Zee TV,

Imagine TV, Raj TV, Sony, Maa TV, SS Music, etc

The future is predicted to be vast given the increasing mobile user base, television

and broadband penetration in India.

Helps fill the gap and prevent viewers from watching repeat telecasts.

To study the various platforms on which participatory content can work

Participatory content has worked on TV platform very well and ensured more

revenues than teleshopping and advertising (dead band slots)

Participatory content has its presence on mobile platforms where users can

participate and ensure revenue generation for the producer.

Internet has been used extensively for the show Bid2Win which got huge

response.

In the future, participatory content has been planned for smart deivces that use

Apps like ipods, tablets, PSP, Nintendo, etc

To probe into the future of participatory content (Challenges and Opportunities)

Average time spent on TV still low

This means that the Indian viewer still spends a much lesser time on

Television and this might be due to fragmentation and availability of

different devices. It is a key challenge for Participatory content which

needs to ensure maximum participation through maximum time spent.

Number of mobile users inflated, actual active users 500 mn

This is a key challenge for Participatory content forecasts and predictions.

However, the good news is that the mobile user base is continung to rise

58

and the Average Revenues Per User are increasing.

Buying slots on TV Channels at the right time as required, a challenge

Buying slots on the channel may be a tedious and impossible task due to

the channels own objectives and hence this is a key challenge for

Participatory content.

Huge Market to be explored

This content is still in its nascent stage and the market for this is predicted

to be huge. This is also what the initial numbers from participation have

shown. Also, the earnings have been growing rapidly

.

Full-time channel to come up

A full time channel has been planned for Participatory Content and this

might present a huge opportunity to repidly expand the user base at a go

instead of programming at dead bands.

Number of TV households and mobile users increasing

The number of TV Households is close to 140 million and the active

mobile users is more 500 mn plus. This shows a positive trend. ARPU’s

are also predicted to increase with 3G and SMS is the most widely used

revenue source.

Innovative formats increasing

Innovations in participatory content will shift focus from traditional Astro,

Cricket and Bollywood to humour, jokes, jobs, reverse auctions, etc

Software to support multiple participation coming up

59

A challenge for Participatry content companies was to enable multiple

users to participate at a particular time. A software development kit will

ensure that thousands of users can participate through IVR technology.

2. Recommendations

Participatory content should explore all platforms with innovative business

models in order to be successful.

It needs to change the perception in the minds of consumers in order to

attain better loyalty. Viewers should associate it with fairness and

transparency. Show must be free from the element of fake-ness.

The future of this kind of content is predicted to be great and sufficient

time should be spent is laying the basic distribution framework and

operator relationships for long term success.

Innovations in formats should be the key driver for change and the pull

mechanism should be used to attract audiences.

Successful business models should be worked across different platforms in

order to attain success in the long term where the big market opportunity

lies.

India is a country where competitors jump into the bandwagon as soon as

a format is successful. Participatory content prouducers should be cautious

and must ensure that they device strategies to be able to fair better than

their competitors.

Brand-tie ups should be done for shows in order to ensure cost-reduction

as well as brand promition which will give the format a new source of

60

revenue

Innovative formats that have worked abroad must be introduced in India

and played here for quick success.

CHAPER VII: BIBILIOGRAPHY

1. FICCI-KPMG Report 2011

2. Business Standard

3. Cellcast Quarterly reports

4. www.cellcast.in

5. www.hungama.com

6. www.indiantelevision.com

7. Press Trust of India

8. Motley Fool poster article

9. Citymax.com

10. IMAI report

11. Business India

61

http://www.indiantelevision.com/

http://www.hungama.com/

http://www.cellcast.in/

12. Times Of India

13. ZEE TV Website

14. IMAGINE TV Website

15. ZOOM Channel Website

62

Documents

Participatory content- Project Report