Swooping eyeballs

ENTERTAINMENT: Hungama TV's acquisition by Disney is the first step to a larger consolidation in kids' entertainment channels.

One look at Walt Disney's expanded stable in India "" Toon Disney, Jetix and now Hungama "" will show what a strategic swoop it has made, with an offering ready for kids of all age groups.

Competing for the same eyeballs is market leader Turner International with its Cartoon Network and POGO channels and the not-so-sought-after players like Nickelodeon, Animax and Splash.

Industry observers are seeing this as a first step towards a much-required consolidation in the kids' entertainment sector. In fact, the next announcement may not be too far away.

"Nick might have some great news up its sleeves, if only to gain a solid footing in a dynamic market," says a media analyst.

The business of kiddie entertainment is big. In 2005-06, the channels raked up almost Rs 120 crore as advertising revenue, over 30 per cent growth over the revenue of Rs 90 crore a year ago. "The number of eager advertisers is only going to escalate with consolidation," predict media pundits.

For Ronnie Screwvala, CEO of UTV, things couldn't have been any better. His Hungama Television will be acquired by the $32 billion-strong Walt Disney, which will also take a minority equity stake in UTV Software Communications. With a whopping $ 30.5 million (about

Rs 140 crore) in his pocket, the CEO is all smiles. "It is a well strategised effort. This move will ensure that we get cracking on our core business of making content," says a smug Screwvala, who has reported a profit of Rs 3.4 crore this fiscal. He is, however, not bidding goodbye to niche channels just as yet.

"We had a successful stint with Vijay and Hungama before they were sold over to News Corp and Walt Disney," he says, hinting at newer channels: "with our experience in broadcasting and the popularity of digital platforms, there is much scope to breed niche channels."

Competition (read Turner) has shrugged off the threat, if any, to its eyeballs. Ian Diamond, senior vice president and general manager, Turner Entertainment Networks (Asia) says, "We expected this (the consolidation) to happen and are surprised that it did not happen earlier. When you are competing with well-entrenched and successful brands such as Cartoon Network and Pogo, it makes sense to consolidate."

India's cable and satellite (C&S) households are estimated at 60 million, and growing at 15 per cent annually.

During the April-June quarter, combined channel share of all kids' channels was around 16 per cent (of 60 million households), up from pre-summer (February to March) share of 12.7 per cent. Cartoon Network and POGO claimed an individual contribution of 27 per cent and 26 per cent respectively to this development.

The trade pundit's verdict: "With Hungama's locally produced content and an excellent infrastructure supported by UTV and Screwvala, Disney will be a formidable challenge to its competitors."