 "Our focus is on sports, regional business: Andy Kaplan")
Sony Pictures Television (SPT) has upped its stake in Indian company Multi Screen Media (MSM) to 94% by buying out Indian promoters share for $271 million. Now the company is in talks to take full control by picking up private equity firm Capital International's (CI) remaining 6% stake in MSM.
It is also looking at strengthening its sports, and regional business in India. For regional, while the talks are still on with Hyderabad based Maa TV Network for stake purchase, it is also contemplating on launching channels to grow footprint. In an interview with Gaurav Laghate, SPT president of Worldwide Networks, Andrew (Andy) Kaplan spoke about plans for India. Edited excerpts:
You have increased stake in MSM and now taking 100% control. What changes it will see in the structure? What will be the focus from here on?
We are seeing lots of opportunities now and obviously will have to pursue it more aggressively. We are trying to grow our sports channel business. It is a tough challenge as sports rights are expensive. And we will also focus on regional expansion.
You were in talks with MAA TV Network for regional expansion. Before that you did due diligence for Enadu Network also. Isn’t it getting late for a regional entry?
We are in talks with MAA TV. It’s a complicated process. Once done, we will get strong presence in the Telugu market.
Are you looking at acquisitions only or is there a possibility of launching on your own too?
We are looking at both acquiring and building on our own. Acquiring mainly is because it is a faster way to grow. Each market, each region is different here and we are studying them to finalise our best strategy. We acquired a Bengali movie channel Aath earlier. The regional channels space is important for us going forward.
Sports, you said, is a big challenge. Was it a dampener when you could not get India cricket rights? How are you building sports business?
There are lot of sports rights. There is scope in this country for lot of others sports too like soccer, tennis etc. We have NBA, UFC and IPL. Yes we lost the BCCI rights, but we are not very disappointed. We are looking at other sports. Going forward, if a property is right for our channel, we will be aggressive to bid for it. But, what we need is to be disciplined at the same time. We will not overbid for the rights.
As a network you have tough competition from News Corp (STAR), Viacom (Viacom18) and ZEE here in India. Even after being one of the early movers, you are not No. 1 player. How strong you think Sony Network is today?
It is a cyclical business. Lot of our programmes are doing good and we will continue to do better job. Of course we want to be number one. I would accept to be number a two, if it is as a most profitable network as an alternative. I don’t like being number four. But, I think it’s just a moment of time and I think we will come back.
Recently, MSM signed a deal with Eros to co-produce films. Earlier also Sony Pictures had tried producing movies but it didn’t work that time. What has given you confidence to enter this market again?
You can say that we are taking another swipe at it. The movie initiatives are now happening on a more local basis. A few years back, the movie investment was more of a LA-based movie company’s initiative. This time, it is more from the local broadcaster standpoint, understanding the local needs.
How much India business contribute to Sony Pictures’ overall business?
Approximately 10% to our overall topline.
How do you see the Indian ad market? Do you get top dollars for the content you produce?
I think the market continues to grow and mature and become more sophisticated. Content owners always will say that their content in undervalued. We can keep increasing the rates, but we have to make a compelling case to the advertisers to pay more.
It is also looking at strengthening its sports, and regional business in India. For regional, while the talks are still on with Hyderabad based Maa TV Network for stake purchase, it is also contemplating on launching channels to grow footprint. In an interview with Gaurav Laghate, SPT president of Worldwide Networks, Andrew (Andy) Kaplan spoke about plans for India. Edited excerpts:
You have increased stake in MSM and now taking 100% control. What changes it will see in the structure? What will be the focus from here on?
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We hope to own MSM completely by end of this year, but there will not be any change as we were operating partners since long. Yes, the life becomes much more easier. We see India as a separate unit. It is a very welcoming market.
We are seeing lots of opportunities now and obviously will have to pursue it more aggressively. We are trying to grow our sports channel business. It is a tough challenge as sports rights are expensive. And we will also focus on regional expansion.
You were in talks with MAA TV Network for regional expansion. Before that you did due diligence for Enadu Network also. Isn’t it getting late for a regional entry?
We are in talks with MAA TV. It’s a complicated process. Once done, we will get strong presence in the Telugu market.
Are you looking at acquisitions only or is there a possibility of launching on your own too?
We are looking at both acquiring and building on our own. Acquiring mainly is because it is a faster way to grow. Each market, each region is different here and we are studying them to finalise our best strategy. We acquired a Bengali movie channel Aath earlier. The regional channels space is important for us going forward.
Sports, you said, is a big challenge. Was it a dampener when you could not get India cricket rights? How are you building sports business?
There are lot of sports rights. There is scope in this country for lot of others sports too like soccer, tennis etc. We have NBA, UFC and IPL. Yes we lost the BCCI rights, but we are not very disappointed. We are looking at other sports. Going forward, if a property is right for our channel, we will be aggressive to bid for it. But, what we need is to be disciplined at the same time. We will not overbid for the rights.
As a network you have tough competition from News Corp (STAR), Viacom (Viacom18) and ZEE here in India. Even after being one of the early movers, you are not No. 1 player. How strong you think Sony Network is today?
It is a cyclical business. Lot of our programmes are doing good and we will continue to do better job. Of course we want to be number one. I would accept to be number a two, if it is as a most profitable network as an alternative. I don’t like being number four. But, I think it’s just a moment of time and I think we will come back.
Recently, MSM signed a deal with Eros to co-produce films. Earlier also Sony Pictures had tried producing movies but it didn’t work that time. What has given you confidence to enter this market again?
You can say that we are taking another swipe at it. The movie initiatives are now happening on a more local basis. A few years back, the movie investment was more of a LA-based movie company’s initiative. This time, it is more from the local broadcaster standpoint, understanding the local needs.
How much India business contribute to Sony Pictures’ overall business?
Approximately 10% to our overall topline.
How do you see the Indian ad market? Do you get top dollars for the content you produce?
I think the market continues to grow and mature and become more sophisticated. Content owners always will say that their content in undervalued. We can keep increasing the rates, but we have to make a compelling case to the advertisers to pay more.