“We
have to push for the change”: Paritosh Joshi
The
pink papers screamed that Star was to lose HLL’s Rs.100
crore deal. And then they announced that things had been resolved.
Now we see Levers brands back on the Star India network. Spokespeople
went on record stating that the issue had been resolved amicably
‘as of now’. When you realize that this wasn’t
the first time this happened, you realize that this is perhaps
not the last. After the numerous reports that followed Peter Mukherjea’s
and Sameer Nair’s exit from Star, this one was the most
exciting. It involved HLL, among the country’s biggest advertisers
on Television, and the country’s numero uno Hindi GEC, Star
Plus.
As
the entire advertising industry brainstorms by the beach on moving
from Rs. 15,000 crore to Rs. 50,000 crore, the Television industry
is fighting its own battles. As newer players come in, across
genres, this battle can only get more interesting.
For
Paritosh Joshi, President - Ad Sales and Distribution,
Star India, the first step to raising revenues is by communicating
the true value being delivered by a burgeoning Television industry;
and shifting from the standalone CPRP mantra. In conversation
with Gokul Krishnamurthy:
Falling ratings, rising CPRPs -- Is this entire thing
about moving to CPTs born of having your backs to the wall?
When
I came into this business, just about two years ago, one of the
things that I noticed, and struggled to understand was that our
pricing to the customer, was rather modest – if you looked
at it in the context of the audience that we were generating.
We
didn’t seem to be getting price increases. Our prices were
largely flat. The continuous battle that we seemed to have was
even holding prices at any given level. If it was 100 rupees,
it was a daily struggle to hold it at a 100 rupees. The sales
people would come and tell me that the ratings were dropping and
because ratings were dropping the CPRPs were going up. I was new
to the business and I didn’t know what to make of it and
I thought, ‘They must be absolutely right. So therefore
it must be a struggle to move prices up’.
At
that point in time, I did not understand the dynamics of the huge
growth in Television homes, in general, and C&S homes in particular.
We started making sense of this thing about a year back; and figured
that we didn’t have much choice but to push back. I started
to push back within my own system and started to push back within
my own people – that they had to measure the falling ratings
in the context of what was really happening in the overall TV
game in India. And two things were happening. One was that there
were a huge number of players in various genres. News was prominent
but there were several others as well that were emerging and trying
to get the attention of the audience. The second thing was that
the C&S universe was being pushed back at the rate of somewhere
between six and eight million new cable homes every year.
Now the fi rst dramatic impact of these cable homes came in the
South -- much higher incomes, much higher TV penetration. And
the South had a very, very well developed regional content scene
pretty early. While in the other parts of the country we still
basically had only Hindi GE, in the South each language had its
own channels and each language had its own genres.
The other three regions have been starting to catch up in the
last four or five years. If you see the movement between NRS ’05
and NRS ’06, you notice that this point onwards, the South
is largely fully penetrated and now the growth that we will see
will be from the other three regions. We see huge surges in several
states. And these (UP, MP, Bengal and several more) are our markets.
So our deliveries are growing at a pretty dramatic pace.
What
I tried to explain to my own guys is that we need to understand
that what is happening in TV is segmentation. It was bound to
happen. The word that got into the popular vocabulary was fragmentation,
which I object to very strongly. When you have a multiple range
of toothpastes, do you say that the toothpaste market is fragmented?
No. You are saying that the consumer has evolved.
(Full
report in Impact) more…