WEAVING THE MAGIC OF DISNEY

The epidemic posed numerous obstacles for businesses in a variety of industries. Businesses that rose to the situation with creativity and self-confidence held their ground and continued to thrive. Despite all the uncertainty, Star India swam against the current and emerged triumphant.

"Everyone learned something from the pandemic." In general, the media and entertainment industries did well. During this time, Disney Star Network saw unprecedented success, with a market share of about 30%. During an interview with IMPACT, K Madhavan, President, Walt Disney Company India and Star India, stated, "Each of our verticals - sports, entertainment, and regional - is performing well."

Madhavan credits his team for the network's success over the last two years, saying, "We have an extraordinarily skilled and committed crew." The pandemic upended old economic practises and highlighted the need for technology innovation, hastening developments in the entertainment industry. This, combined with high-quality storytelling, are a few of the reasons why we are and will remain number one. Our entertainment portfolio includes wholesome, high-quality programming for the whole family, and we're continuing to spend heavily in content creation across platforms."

When it comes to regional content disruption, he claims that the network has been able to transform the perception of regional programming by providing high-quality shows to the market. "Our strategy relies heavily on localization and a strong regional focus. We've put a lot of effort into creating high-quality entertainment that will appeal to a wide range of audiences, including families. To put things in perspective, there was a lot of talk about Bigg Boss being highly expensive at the time. Getting superstars like Kamal Haasan or Mohanlal is a very expensive strategy, and it was questioned by everyone. However, we joined the market and were successful. Another notable example is show cross-pollination, which has shown to be successful across the network. Sreemoyee on Star Jalsha, for example, was created based on information we gathered about homemakers who felt abandoned and taken for granted by their family. With a middle-aged protagonist, it was considered a risky show, but it has struck a chord with families. The sitcom was remade for Star Plus as Anupamaa, and for Star Pravah as Aai Kuthe Kay Karte, all of which are still doing well on their respective channels."

India is making preparations :

While Disney has been shuttering linear channels around the world to focus on Disney Plus, Madhavan believes India is a unique market with a lot of space for growth in both television and OTT.

"We have roughly 300 million households, of which 100 million do not have television or power, implying that one-third of the population does not have access to television." There are just 120 (million) pay-TV households in the country. As a result, I see a lot of promise."

"In industrialised markets, distribution revenue is 2/3rd of your income and advertisement revenue is 1/3rd, but in India, it's the other way around," Madhavan adds of the reliance on distribution revenues. We haven't been able to touch distribution revenue in the last two to three years owing to regulatory uncertainty." He believes the problems will be handled quickly. "We're in continual contact with TRAI, and we're hoping for a quick resolution."

Star is well-known for its presence in all critical language markets and genres, but Madhavan, a seasoned regional market expert, believes there is still room for expansion.

"We cover 95% of the market, which comprises both the Hindi Speaking Market (HSM) and the regional market." We'll keep expanding our entertainment offerings to new areas. For example, we're getting ready to create an Odia channel," he says.

In the OTT space, Madhavan claims that India has 50 million unique users. "At least in the next six to seven years, I would think linear channels have a big potential for growth."

When it comes to Disney+ Hotstar, Madhavan is optimistic about the platform's future growth. "With Hotstar, we were the first to enter the OTT arena, launching Disney+ Hotstar in April 2020, and it has since grown to become India's largest direct-to-consumer streaming service." In addition to a large collection of worldwide content, we have the top content in sports, film, and entertainment. Even in the OTT market, our 30 years of experience providing top-notch entertainment to a diverse range of audience groups gives us an advantage. We also recognise that India is a price-sensitive market, and our strategy has been tailored to reflect this. Premium costs Rs 1,499 per year, Super costs Rs 899 per year, and Mobile costs Rs 499 per month, allowing consumers to pick from a number of plans that best suit their needs."

Madhavan passionately refutes the notion that Disney+ Hotstar is overly reliant on cricket for market share and revenue growth, demonstrating a strong conviction in the company's projects. "It's only a perception." We are investing equally in content across all languages. In India, we have over 100,000 hours of programming, with Disney Star's linear network producing about 1/5th of that, or close to 20,000 hours of entertainment content. All of this content is also available in digital format. Aside from TV shows, a variety of films such as Akhanda, Atrangi Re, Bro Daddy, and Hotstar Specials shows such as Special Ops, Aarya, Human, and November Story have done well on the platform. We also deliver a multilingual library of international content, including titles like Loki, The Falcon, and The Winter Soldier, among others."

"Our aim is to increase the quality and improve the technology and reach the subscriber," Madhavan said when asked when Disney+ Hotstar will become profitable. You will reach your business interest if you use a combination of all three. "We don't have a schedule."


Star India's Background :

For more than 30 years, Star India has shaped the Indian media landscape and is one of the country's top media conglomerates, reaching over 700 million viewers every month on television in India and over 100 other countries.

Disney Star's channel portfolio spans eight languages and includes general entertainment, films, sports, infotainment, kids, and lifestyle programming. Every year, the network produces over 20,000 hours of content and broadcasts 70+ channels to 9 out of 10 C&S TV households in India.

With 14+ channels, the Star Sports network is the most popular sports network. It is home to a variety of major domestic and international sports, and it is revolutionising sports in India, assisting India in becoming a multi-sporting nation.

Disney+ Hotstar, India's largest premium streaming platform, has revolutionised how Indians consume entertainment, from their favourite TV episodes and films to sporting events. Disney+ Hotstar, which has the most content in India, has over 100,000 hours of TV series and movies in eight languages, as well as coverage of every major global sporting event, including the IPL.

Through Fox Star Studios, the corporation has a presence in the Indian film production and distribution industry. Disney Star Studios is in charge of marketing and distribution in the United States for its Hollywood slate.

Investing Significantly in Sports :

Disney Star has become synonymous with sports, and it is the country's biggest sports network, broadcasting nearly all of the country's major cricketing events, including the ICC T20 World Cup and the IPL. Other national competitions, such as kabaddi, and international leagues, like as Wimbledon and the Premier League, have also been acquired.

"We have a long-term interest in sports and digital," Madhavan adds when asked if venturing into sports was beneficial for the network. First and first, we are bullish, and second, we are enthusiastic about the industry. We are actively investing and will continue to expand our sports portfolio in order to realise our goal of making India a multi-sporting nation."

When it comes to the mature global sports business, Madhavan points out that India is still a minor player and that there is still room for the sports category to grow. "In the United States, close to 50-60% of people watch the NFL; in comparison, we have a relatively small proportion, but it is growing." The IPL is a typical example of how our commitment revolutionised the league and contributed to its huge expansion, making it one of the most lucrative sporting properties in the world. Since we took over, the number of people watching the IPL has increased by fourfold. That's a significant change. We continue to be bullish on the sports vertical as well as the investment. We also have additional long-term properties such as PKL and ISL. We expanded the property and elevated a regional sport to a national level. This has aided us in changing the public's perspective of local sports," he said.

"Regionalization has also played a key role in expanding the reach of sports properties across India. Today, indigenous languages account for more than 80% of cricket consumption, with Hindi accounting for 60% and Telugu, Tamil, and Kannada accounting for the remaining 20%-25%. In the case of football, Bangla and Malayalam account for over 70% of total ISL consumption. That's how much interest there is in regional sports broadcasts," he remarked.



Prepare for the IPL :

With the IPL, ICC, and BCCI's media rights up for renewal, Madhavan says they're ready to bid aggressively.

"We're still optimistic about the future media rights auction." And we'll keep bidding until it's profitable." "Sports consumption in India is still low compared to international markets," he continued when asked if the IPL had more room to develop. There is definitely room for the property to grow with the appropriate plan."

Consolidation Potential : 

"There are three or four significant companies at the national level," Madhavan answers when asked if the media sector is consolidating. Because entering the OTT or TV industry at a national level entails such high expenditures, consolidation is unavoidable. This will result in healthy competition, which will benefit the industry and provide quality material to the viewers. In reality, it's already happening: the quality of the production, technology, innovation, and animation are all on par with international standards."

Who is K Madhavan, and where did he come from?

In April 2021, K Madhavan was appointed Country Manager and President of The Walt Disney Company India and Star India. With responsibility for the massive Disney, Star, and Hotstar businesses and operations spanning entertainment, sports, and regional channels, as well as direct-to-consumer, K Madhavan drives the company's strategy and growth in India.

Madhavan joined Star India as its South Head in 2009. The corporation developed a thriving regional entertainment portfolio under his supervision.

Madhavan has been the Country Manager of Star & Disney India since 2019, supervising the company's television and studios operations in the country.

Previously, from 2000 until 2008, Madhavan was the driving force behind Asianet's expansion as the unchallenged leader in Malayalam, with more than 50% market share.

Prior to joining the media, he worked in banking and corporate finance.

The Stability Pillar :

In every sense, the epidemic period was difficult. "Navigating through the epidemic was tricky," Madhavan says when we ask him how he managed one of the largest networks through these trying times. The pandemic threw the entire old business system into disarray. For all of us, it was a steep learning curve. We made large investments in high-octane shows like Bigg Boss and Super Singer in order to comprehend the shifting entertainment needs of customers. We also increased our original content hours on TV and made significant investments in high-octane shows like Bigg Boss and Super Singer. Our watch time was roughly 3.5 hours or 3.6 hours at the time. This was the time when a lot of regional content gained popularity. With a 40% market share, Star Pravah emerged as the unchallenged leader. Star Maa has a nearly 40% market share in the Telugu market, making it one of India's top three channels. With over 50% market share, Asianet has solidified its position at the top, which we have maintained over the years. In August-September 2020, Star Vijay hit a major turning point, and it is now one of Tamil Nadu's most popular weekday primetime networks. Star Plus is the HSM market leader, with sales at their highest in seven years. During the pandemic, we delivered two successful IPLs in extremely difficult settings."