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Sony Pictures Television (SPT) has raised its stake in Multi Screen Media (MSM) to 94 per cent, by buying out the stake of Indian promoters for $271 million. It is in talks to secure full control of MSM by acquiring private equity firm Capital International's six per cent stake.
SPT president of Worldwide Networks, Andrew (Andy) Kaplan, in an interview with Gaurav Laghate, talks on the company's plans for India. Excerpts:
You have raised your stake in MSM. What changes would MSM see in structure? What would you focus on?
We hope to own MSM completely by end of this year. But there won't be any change, as we were operating partners since long. Yes, life becomes much easier. We see India as a separate unit. It is a very welcoming market.
Now, we are seeing lots of opportunities. Obviously, we have to pursue these more aggressively. We are trying to grow our sports channel business. It is a tough challenge, as sports rights are expensive. We will also focus on regional expansion.
You were in talks with MAA TV Network for regional expansion. Before that, you had carried out due diligence for Enadu Network as well. Isn't it late for a regional entry?
We are in talks with MAA TV. It's a complicated process. Once done, we would have strong presence in the Telugu market.
Earlier, we had acquired Bengali movie channel Aath. The regional channels space is important for us.
You said the sports space was a big challenge. Was the fact that you couldn't secure India cricket rights a dampener? How are you building the sports business?
There are a lot of sports rights. In this country, there is scope for other sports, too.
These include soccer and tennis. We have the rights to the National Basketball Association, the Ultimate Fighting Championship and the Indian Premier League.
Yes, we lost the Board of Control for Cricket in India rights. But we are not very disappointed.
We are looking at other sports.
In India, News Corp (STAR), Viacom (Viacom18) and ZEE present tough competition. Though you were one of the early movers, you are not the number one player.
It is a cyclical business. A lot of our programmes are doing well and we would do a better job. Of course, we want to be number one. If the network is the most profitable, I would also accept the number two slot. I don't like being number four. I think it's just a moment of time before we come back.
Recently, MSM signed a deal with Eros to co-produce films. Earlier, too, Sony Pictures had tried producing movies, but it didn't materialise. What gave you the confidence to enter this market again?
You can say we are taking another swipe at it. Now, movie initiatives are happening on a more local basis. A few years ago, the investment was more of a Los Angeles-based movie company's initiative. This time, it is more from the local broadcaster's standpoint---understanding local needs.
How much do the India operations contribute to Sony Pictures' overall business?
Approximately 10 per cent to our overall revenue.
What do you think of the Indian ad market? Do you get top dollars for the content you produce?
I think the market continues to grow, mature and become more sophisticated. Content owners would always say their content is undervalued. We can keep increasing rates. But we have to make a compelling case to advertisers to pay more.
We are in talks with MAA TV: Andrew Kaplan > afaqs! news & features
SPT president of Worldwide Networks, Andrew (Andy) Kaplan, in an interview with Gaurav Laghate, talks on the company's plans for India. Excerpts:
You have raised your stake in MSM. What changes would MSM see in structure? What would you focus on?
We hope to own MSM completely by end of this year. But there won't be any change, as we were operating partners since long. Yes, life becomes much easier. We see India as a separate unit. It is a very welcoming market.
Now, we are seeing lots of opportunities. Obviously, we have to pursue these more aggressively. We are trying to grow our sports channel business. It is a tough challenge, as sports rights are expensive. We will also focus on regional expansion.
You were in talks with MAA TV Network for regional expansion. Before that, you had carried out due diligence for Enadu Network as well. Isn't it late for a regional entry?
We are in talks with MAA TV. It's a complicated process. Once done, we would have strong presence in the Telugu market.
Earlier, we had acquired Bengali movie channel Aath. The regional channels space is important for us.
You said the sports space was a big challenge. Was the fact that you couldn't secure India cricket rights a dampener? How are you building the sports business?
There are a lot of sports rights. In this country, there is scope for other sports, too.
These include soccer and tennis. We have the rights to the National Basketball Association, the Ultimate Fighting Championship and the Indian Premier League.
Yes, we lost the Board of Control for Cricket in India rights. But we are not very disappointed.
We are looking at other sports.
In India, News Corp (STAR), Viacom (Viacom18) and ZEE present tough competition. Though you were one of the early movers, you are not the number one player.
It is a cyclical business. A lot of our programmes are doing well and we would do a better job. Of course, we want to be number one. If the network is the most profitable, I would also accept the number two slot. I don't like being number four. I think it's just a moment of time before we come back.
Recently, MSM signed a deal with Eros to co-produce films. Earlier, too, Sony Pictures had tried producing movies, but it didn't materialise. What gave you the confidence to enter this market again?
You can say we are taking another swipe at it. Now, movie initiatives are happening on a more local basis. A few years ago, the investment was more of a Los Angeles-based movie company's initiative. This time, it is more from the local broadcaster's standpoint---understanding local needs.
How much do the India operations contribute to Sony Pictures' overall business?
Approximately 10 per cent to our overall revenue.
What do you think of the Indian ad market? Do you get top dollars for the content you produce?
I think the market continues to grow, mature and become more sophisticated. Content owners would always say their content is undervalued. We can keep increasing rates. But we have to make a compelling case to advertisers to pay more.
We are in talks with MAA TV: Andrew Kaplan > afaqs! news & features
