Subhash Chandra

This interview originally appeared in the MIPTV 2014 issues of World Screen and TV AsiaPac.

When Subhash Chandra launched ZEE TV in 1992 as India’s first Hindi-language satellite channel, taking on a massive government-backed incumbent in Doordarshan, the conventional wisdom held that there was no money to be made in the country’s media business. Chandra ignored the naysayers, building ZEE Entertainment Enterprises into the country’s leading media conglomerate with a host of channels and an ever-expanding library of original content. ZEE’s parent company is the Essel Group, which is involved in a variety of sectors, including movie theaters, online gaming and pay-TV distribution with the Dishtv DTH platform and the SITI Cable Network MSO. Chandra, chairman of ZEE and Essel, shares his thoughts on India’s evolution as a lucrative entertainment and media marketplace.

TV ASIAPAC: What are the prospects for the Indian pay-TV business as it nears its 25th anniversary? Are you finding new opportunities in light of the country’s digitization mandate, which is set to be complete by 2015?
CHANDRA: The prospects are certainly positive. With the advent of digitization the overall pay-TV business will definitely receive the maximum benefit. Since the market will bring in the required levels of transparency and subscriber information, it will give this business a [boost].

TV ASIAPAC: Given how many channels are operating in the Indian pay-TV landscape, how do you stand out and grab the attention of audiences and platforms?
CHANDRA: Our approach in terms of content strategy has always been unique and innovative. We have never followed trends, nor have we ever fallen for the [ratings] race. Our core objective has always been to stay relevant and engage our viewers. Our home-grown content formats like Dance India Dance have shown remarkable performance, and have been extremely liked and appreciated by our viewers across the globe. We stand out by offering customized content solutions to our viewers based on their geographic location and language preference. In the international markets, our approach has been mainly to connect with not just the Indian diaspora, but with the global audiences. So we offer content for the global audiences, either by dubbing or subtitling the existing content, or for certain key markets like the Middle East, we even produce customized content. We consider ourselves a content company, hence our focus will always remain towards offering engaging content to our viewers worldwide, irrespective of the screen on which they consume the same.

TV ASIAPAC: Against the competitive environment, how has the television ad market held up for ZEE?
CHANDRA: The advertising business has been quite positive for ZEE. In fact, we have outperformed the industry in terms of the growth rate. The advertising revenue growth for the industry has been about 10 percent. However, for us the growth (excluding the spikes experienced during certain quarters due to the sports properties) has been around 20 percent. The future seems positive for the overall advertising revenue market, with an expected CAGR [compound annual growth rate] of around 12 to 13 percent in the next one year.

TV ASIAPAC: How is your international-channel business performing? What are your goals for this segment of your business?
CHANDRA: There is a strategic rollout plan chalked for the international markets. We are expanding our reach to more and more audiences across the globe with new channel launches based on the preferences of the global audiences. Our recent step in this direction has been the entry into the Indonesian market with the launch of two new channels (ZEE Bioskop and Veria Living). We are certainly on track with respect to the set goal of reaching a billion viewers by the year 2020. Currently we are reaching out to more than 700 million viewers across the globe. I am extremely positive and confident that with our strategic rollout plan for the international markets, we shall definitely reach 1 billion viewers by the year 2020.

TV ASIAPAC: Channels and platforms in the U.S. and Europe are increasingly focused on monetizing viewing that takes place off the linear channel. How is ZEE tapping into consumers’ needs for anytime, anywhere viewing?
CHANDRA: Our focus, being a content company, is definitely to capture every screen the viewer prefers. The over-the-top television platform launched by us, Ditto TV, caters to this requirement of the viewers. With this robust platform, we intend to offer linear as well as nonlinear content to all the connected devices of the viewers, giving them access to their entertainment and information needs on the go. With its innovative approach, ZEE has always been a pioneer in introducing new content delivery solutions to the market, Ditto TV being one of the many.

TV ASIAPAC: The Indian government has set 2015 as the deadline for nationwide digitization, which will mean accurate subscriber reporting for the first time, as well as encrypted signals that could stem the country’s significant piracy problems. What opportunities is the digital transition presenting for ZEE? And what are the hurdles?
CHANDRA: Digitization certainly presents us with more opportunities than challenges. It has [established] the required levels of transparency in the entire broadcasting ecosystem, which will positively iron out all the gray areas, leading to enhanced and realistic revenues [based on more accurate subscription numbers]. Digitization has also opened up avenues for niche channels, which viewers can now opt for at a premium price. Going forward, when Phases 3 and 4 are implemented [in the last quarter of 2014, taking digitization across all urban areas and then across the country] the market will be further enhanced. However, the monetization of [digitization] will only be possible in fiscal 2016.

In terms of challenges, a timely rollout of all the phases appears to be the primary concern. Considering the delay observed in the rollout of Phases 1 and 2, the same should not be reflected in the pending phases.

TV ASIAPAC: When we last spoke two years ago, you mentioned that a key factor in the success of India’s pay-TV business was the evolution of the production sector. Has that happened?
CHANDRA: It has evolved for sure, but there is immense potential for it to further improve by many folds. Genres based on information and knowledge or wellness have huge potential in this market. Niche content based on [India’s] historic significance or about education has still not made any mark in the industry, and I firmly believe that [these genres have] immense potential.

News broadcasting, on the other hand, needs to evolve further. The presentation patterns of news need to be more engaging than just a one-way communication. As I have always said, a circular relationship between the viewer and the broadcaster needs to be established.  

TV ASIAPAC: Are you looking at any further expansion in your Indian channels portfolio?
CHANDRA: Definitely. ZEE has 34 channels in the domestic market, covering all the leading genres like general-entertainment, movies, sports, music, etc. Our 24-hour Hindi movies channel [called] &pictures is a new addition, catering to various viewer needs.

TV ASIAPAC: In addition to serving Indian viewers in the U.S. with the ZEE channels, you’re also targeting English-language audiences with the Veria Living health and lifestyle channel. What prompted you to enter this crowded market? And how is your U.S. expansion progressing?
CHANDRA: Our in-depth study of markets like the U.S. suggests that the levels of stress and anxiety are extremely high. People in these markets do not invest time in their lifestyles and well-being. We identified that there is a huge need for a solution that enlightens the audiences and makes them aware of the importance of a healthy lifestyle. So this prompted us to enter this market. I wouldn’t say it is crowded, since there is really not a single integrated solution catering to these needs in the said market. What Veria Living brings to the table is an integrated approach focused on offering solutions that lead to an enhanced lifestyle and well-being of these audiences. Being an integrated solution, the idea is not just to offer content based on health via television, but to also create a state-of-the-art well-being center, an interactive response mechanism where one can express issues pertaining to wellness and seek solutions, and a wide retail presence with world-class products.