In the last few years as more than 400 television channels started beaming into Indian homes, making selection of the right channel and the right show difficult for the viewer, one man has been trying to bring some order into the television space. In 2005, Atul Phadnis, a Mumbai based media professional turned entrepreneur, launched a company called What?s On India Media. It built and introduced a technology called electronic programme guide (EPG) in India?a concept that was already known and popular in the west.
Phadnis, whose career in the media industry spans over 14 years, first thought of this when he was working with television measurement agency TAM and discovered that the analog industry was on the brink of switching to digital and there was no system available to organise TV channel schedules.
He says, ?One of the key insights that I had from those days is that when new programmes are launched, there has to be a marriage between the right content and the right eyeballs. Especially, in our market which is extremely fragmented and segmented.?
However, while Phadnis launched the company in 2005, it took him nearly two years to build the technology and then find takers for it. It was only after the direct-to-home (DTH) sector came into existence that EPGs became more relevant. EPGs are integrated with STBs (set top box) and the ?guide? button on the remote control enables the use of the software.
So far, most of the cable and DTH operators have been using the EPG technology in their backend systems. That is now changing. Last week What?s On India launched a 24-hour TV guide channel on Hathway cable network. This channel acts as an efficient platform for broadcasters to showcase and promote their shows. And since it?s a neutral platform it is most useful for announcement of new show and channel launches.
?What makes that value proposition stronger is that it?s the only such model in the market at this time,? says Phadnis. ?Also, since we offer diverse and varied content choices to viewers, it helps the operator increase sales of newer channel bouquets and packs.?
?Information changed everything in this world, so is it for TV viewing. Today, most of the DTH players offer EPG which offers the customer the flexibility to pick and choose their favorite programmes and their timings and plan accordingly which in return helps in providing customer value,? says Tony D Silva, chief operating officer, Sun Direct TV, a DTH player.
Globally, viewers use the TV guide channel to also plan their forward appointments with the television. They watch promos of upcoming programmes and find out additional details, twists and turns of ongoing shows.
?We tested the model for two and half years. So we are well ingrained into this area. We are an unique kind of specialist, specialising in content choices that viewers are making,? says Phadnis.
Early on, What?s On India realised that 70% of TV viewing in India is unplanned. In the US, it is 67%. Initially the company thought that the concept would appeal only to urban viewers but soon discovered that rural viewers were also struggling to make a choice. Then it thought that only male viewers would be attracted to such a concept. This time also they had to revise their assumptions?women tend to extend their viewing even after their appointment viewing. That is the time when female viewers go for the ?search and find? mode where EPG can facilitate their viewing.
However, launching the EPG business was not an easy task. Phadnis says, ?We had three major obstacles and they were to do with various market realities.?
The first obstacle was in terms of technology. ?What we figured out in 2005-2006 when we started out was that building the technology had to be from the scratch in India because our market was unlike others. And we couldn?t just borrow something that was available in other markets,? explains Phadnis.
The second hurdle was building industry relationships. ?We actually need to talk to all broadcasters because the broadcasters are the content providers. Today I can say that the operators have been our best allies,? he adds. Finally, choosing the right presentation for the channel was another obstacle. What should the channel offer, how should it look, were queries the channel had to address and the company tested around eight or nine versions before launching the final one.
Today, the channel screen is divided into two parts. The top half plays promos of various TV shows. And the bottom half of the screen has an EPG grid which informs viewers about current shows.
D?Silva of Sun Direct, agreeing on the benefits of such services says, ?As a DTH player we are already offering these services since we launched. This is another value addition in our offering to empower the customer with information and clarity. For a population of 1 billion which is connected vastly through the unorganized cable network, at least one EPG channel is definitely a welcome beginning.?
Says Phadnis, ?Now that the channel has been launched, the biggest challenge is to ensure that the overall system of channels feeding back the information on shows is flawless. We have taken our time to build that system. Today we power that information at an industry level.?
Said the Reliance Big TV spokesperson, ?In today?s world of 200-300 channels, EPG provides an easier way to surf and search the available entertainment options for the viewer. Its contribution to simplify the remind / record a selected programme takes this ease to a new level.? What?s On India?s attempt to drive the EPG data for viewing recommendation via this new channel is an unique attempt to push this boundary further.?
While Phadnis did not want to reveal the amount of money he has sunk into this project, industry watchers say it would take upwards of Rs 50 crore to launch a channel of this scale and technology. While the company is promoted by Phadnis in 2008, Nexus Venture Partners and Sequoia Capital, two venture capital funds have partnered with the company. The VCs are represented on the company?s board and help in its understanding of similar models across other markets.
The EPG business is based on licensing of the EPG solution to different operators. The channel also gets advertising revenue, primarily from broadcasters who buy airtime on What?s On India for their programme promos. As of now, Phadnis says there is no opportunity for other forms of advertising revenue.
Also, it is key for broadcasters to understand the rate of conversions that happen, courtesy What?s On India. For this, it has developed a separate currency to measure promo conversions.
The channel will be fully operational by end of December and it is targeting 20 million homes by the end of the first quarter of 2010. For any TV channel, distribution plays a key role and huge funds are needed.
DTH player Reliance BigTV is also planning to launch the EPG channel on its network. ?For the platform operators, there is an opportunity to monetize the EPG gives a chance to offset their costs. Trials are on in our labs to launch the channel on our platform shortly? said the Reliance BigTV spokesman.
Industry insiders say that since it?s a win-win situation for both the channel and the network operator, What?s On India is more like a partner and probably is getting a discount on carriage fees, or in some cases the carriage fees may even be been waived off.
Phadnis is unperturbed by any talk of competition in this nascent market. ?We have worked very hard to be the first movers in this country and we will definitely not give that up easily. We will keep investing in two aspects – in technology and in a lot of intellectual capital.?
The company also plans to foray into the mobile telephony content search business after 3G technology kicks in.
The global scenario
Recently the largest cable operator in the US, Comcast renewed its carriage agreement with TV Guide Network that is controlled by Lionsgate and One Equity Partners. Today the TV Guide Network not only showcases programme listing but has its own show line up. It has even acquired license to rerun popular shows like Curb Your Enthusiasm and Ugly Betty.
However, like in India, the TV guide system emerged in the west on the back of the newspaper and magazine listings. With the growth in cable and satellite and sheer increase in number of channels and shows, the market demanded separate TV guide channels that would simply make TV viewing easier. The TV Guide Network started as a small independent 24-hour cable network called the Electronic program guide as early as 1985.
Similarly one of the biggest TV guide networks in Europe in Gemstar-TV Guide, a wholly owned subsidiary of parent company Gemstar-TV Guide International that caters to many international markets. However, most of the TV guide channels internationally have the anchor format, who keeps feeding in information on ongoing and upcoming shows.