?Our strength will be in the regional markets?

Tarun Katial, CEO of one of India?s youngest broadcast companies, Reliance Broadcast Network Ltd (RBNL), has had impressive stints at Star Network and Sony Entertainment Television (now called Multi Screen Media). He is considered to be one of the most successful media executives in the country. In 1998, Katial earned an MBA in marketing, and went on to be a part of the advertising industry. He spent three rewarding years with agencies such as Saatchi & Saatchi and Ogilvy & Mather, before joining the Star Network as executive vice president (content and communication). He then moved on to SET as its business head. Katial has been instrumental in the launch of successful shows such as ?Kyunki Saas Bhi Kabhi Bahu Thi? and ?Indian Idol?. In an interview with FE?s Anushree Chandran, Katial discusses RBNL?s plans, the challenges in the radio business and digitisation of cable television. Edited excerpts.

How has RBNL?s journey been so far?

The total RBNL turnover for financial year 2012 was Rs306.46 crore. Radio accounts for a large chunk of this — about 70%. Television is nascent and in its first year of operations, but we expect its contribution to go up significantly. Television production is also in its early stages but it accounts for around Rs40 crore.

We entered the television business because of the amount of regional advertising we were getting out of radio. Eleven of our radio stations lie in the Hindi speaking market. We found that there was lack of regional content and regional entertainment in the region, leading to people only relying on national general entertainment channels and other national television platforms. This allowed us to begin Big Magic. With CBS, we created CBS Spark Punjabi, which was a combination of international content dubbed in Punjabi, as well as some really good local content from Punjab itself. We also realised that there was a need to position some of our English channels in such a way that it allowed them to connect locally as well. In partnership with Germany?s RTL, we are in the process of launching an action channel called Big RTL Thrill targeted at male audiences.

How do you plan to expand your regional footprint?

Most of the regional networks have been acquired already and there is very little to acquire now. But we think that there is a lot of scope in the Northeast because it is almost a media-dark region. There is a great off-take of English music in that region. We are one of the few people in radio in the Northeast and we want to build on that. You would be surprised to know that this market leads when it comes to fast moving consumer goods. Personal grooming is big here ? it?s almost like South East Asia in that sense. We have already targeted some of our channels to audiences in the Northeast and you will see some great local work emerging in the next quarter.

In five years time, we will be a true-blue broadcasting entity with radio and television contributing in equal measure to the top lines. Our strength will be in the regional markets — we will be able to put in an offering that?s quite competitive. It will be a radio-television bundled proposition. We also believe that there is great room for regional sports, and this is something we plan to exploit in the future.

Does the bleak economy bother you?

We have insignificant FII exposure. The 26% limit would be strategically used at an opportune time to bring in investors in the future. We?ve used technology as a big enabler in creating efficiencies and effectiveness in the radio and television business. We run a very lean and mean machine. I believe that as we go along we have enough opportunities for an upside because of our differentiated proposition.

Do you expect digitisation to be in place by its cutoff date?

If digitisation does not happen in time, the biggest losers will be the multi-system operators (MSOs). Direct-to-home (DTH) operators have proven themselves with their ability to market themselves and their customer service. What the MSOs really need to do is to put their weight behind marketing and customer service. Hathway and some of the others are doing it already.

What are the potential complications in audience measurement that can happen due to digitisation?

I don?t think that we are prepared for digitisation as far as audience measurement is concerned. I don?t know if Tam Media Research?s sampling mechanism is oiled enough to be able to match the various packages offered by various digital operators. Now Tam Media Research believes that direct-to-home measurement is equal to putting a people-meter in a digital home. But the fact is that when you enter a digital home, a lot of different parameters creep in.

With digitisation, won?t consumers have to pay far more for less?

I think that the consumer cannot continue to get what he is getting at the price that he is paying right now. But yes, he will be able to choose better and get quality content. Digitisation is very good for the broadcast business and places such as Mumbai are already 40% digitised. Index that just to top-end audiences (SEC A), and that percentage would be 90%. Broadcasters will get increased availability and enhanced subscription revenues in a digital environment. We can all hope to get better reach and grow in a transparent way.

What are the issues with radio measurement? Why have some of the stations stopped buying radio data in Delhi?

Most radio operators, including us, believe that the RAM (radio audience measurement) data is erratic (sudden ups and downs, shifts, etc.,) but it?s better than not having anything at all. The Media Research Users Council (MRUC) was discontinued a while back. We have heard that a lot of stations have stopped using RAM data in Delhi and I don?t think that they are entirely wrong in doing that. We also believe that the Delhi market data is not well sampled and does not reflect the true trends in the market.

Have you tried setting up something new in radio research for Delhi? Have you been in touch with Ipsos and others for the same?

Well, maybe it?s a choice that we just have to make. Anyway, RAM is a commissioned study by radio operators and it?s not really an independent syndicated study. It will be the choice of the radio operators if they want to continue with RAM or not. This is quite unlike television, where TAM Media Research owns and conducts the research and then sells to others. We have also heard that MRUC has aspirations in radio, but we are still waiting and watching. We would be happy to support them if it is something worthwhile. It?s the same story for MRUC?s outdoor research in which we are a seed investor.

What are your vies on the phase III auctions for FM radio?

I hope that the auctions will be slated for December. The migration of the current licences will need a good framework of time and money. Over a period of time, we hope that some of the phase III guidelines kick in to help radio grow its reach ? whether it?s the coverage of sports or news and current affairs. We will be looking to capitalise on the coverage of news very soon (as under Phase 3 guidelines).

Could you elaborate on your other businesses ? Big Live and Big Productions?

Big Productions has a leading show on Star Pravah called Swapnanchya Palikade which has been the top show for the last three years. We also are doing a show called Laxmi Vs Saraswati on Star Pravah, besides Niharika on ETV Gujarati. We are also re-launching Khulja Sim Sim for Big Magic which is a unique property and we are looking forward to its comeback.

There are a couple of very interesting shows on Big Magic in the next few months. One is a show on crimes of passion? real documented dramas which will pique the interest of viewers as also raise awareness on passion related crimes. On Big Live, we have nearly 50 properties, in which we own the IPR, which focus on regional and national awards across regions. There is an attempt to bring an on-air and on-ground connect via Big Live. We will continue to do more of these across the board.