(Bloomberg) — On a breezy April evening some 45,000 Indian Premier League cricket fans are packed into Wankhede Stadium to watch the hometown Mumbai Indians battle the Rajasthan Royals.
Elsewhere in the city, hundreds of employees of Viacom18 Media Pvt. are on different mission, transmitting the match in 12 languages and 20 camera angles across the world’s most-populous country.
“We are targeting over 600 million people to come and watch,” said Uday Shankar, the executive behind the effort.
Once an underdog dwarfed by foreign behemoths, Viacom18 and its JioCinema streaming service are poised to become the most powerful player in the $28 billion Indian media and entertainment industry. Reliance Industries Ltd., Viacom18’s largest shareholder, has plans to merge the business with Walt Disney Co.’s India operations, adding dozens of cable TV channels and tens of millions of streaming subscribers in a deal valuing the combined enterprise at $8.5 billion.
With everything from local news to big Hollywood films, the new company aims to capture not just a bigger share of TV ad sales, but the growing digital revenue now going to tech giants like YouTube and Meta Platforms Inc. Viacom18 could also become a broader rival to Amazon.com Inc. if it follows through on plans to integrate e-commerce into its streaming platform.
Shankar, the 61-year-old executive who’s going to lead Viacom18 as vice chairman, is a media veteran. A former journalist, he helped turn Star India into a prized asset for the Murdoch family, which then sold their entertainment assets to Disney in 2019. Now he’s overseeing the group buying back that business. His role as a bridge between Hollywood and Bollywood will make him a key player in the media strategy being implemented by Reliance, a company with interests from energy to telecommunications.
“He’s one of the most talented media executives in the world, not just in India,” said James Murdoch, who partnered with Shankar in Bodhi Tree Systems, an investment firm that owns a piece of Viacom18. “Uday has a great track record of being able to move businesses forward, and we’re excited to see it continue.”
India isn’t a market where others have been able to move forward so easily, despite the country’s economic growth.
Disney, for example, acquired a large business there when it bought 21st Century Fox’s entertainment assets in 2019. But pricey bidding wars for cricket rights and a paltry $1.28-a-month in revenue per streaming subscriber has made profitability hard to come by. In a bid to bulk up, Sony Group sought to merge its Indian business with local rival Zee Entertainment, only to see the deal fall apart earlier this year.
With the backing of Mukesh Ambani, Reliance’s chairman and Asia’s richest person, Shankar thinks he can achieve a different outcome, building a profitable streaming business in large part by offering ad-supported programing. It helps, he said, that he was born and raised in the country.
“India is like a continent,” he said in an interview at his office in the southern port area of Mumbai. “Many people have come in and found it difficult to build a big business, but for us, we are from India.”
Among his boldest bets, letting cricket fans stream the premier league for free on JioCinema, a move that attracted 449 million viewers and more than 17 billion views last season. Shankar is offering free IPL live streaming again this year.
The goal is to develop the market for mobile streaming in India and particularly the associated advertising, since most of the company’s customers subscribe to the ad-supported version. Digital ad revenue will come not only from the English- and Hindi-speaking population, but also from regions that have their own languages and purchasing habits.
Sports streams garnered 70% of their viewership from small towns last year, and most of viewers were in the 18-to-44-year-old demographic most coveted by advertisers, according to a report from the consulting firm EY. And while advertising in India’s $4 billion traditional TV market is shrinking, the digital advertising market is projected to more than double to about $20 billion in the next five years, Shankar said.
“You need to make sure that digital offerings are available to smallest of the small advertisers,” he said. “That’s the model that we believe in.”
Read More: Booming India Prepares to Take China’s Global Growth Crown
All of this takes work of course. Back at Viacom18’s newly opened production hub, engineers in a massive control room monitor screens on multiple platforms to spot glitches and fix them in seconds. Separate screens receive live feeds of viewer consumption. On top of the studios, a giant data center supports the video feeds, all part of Shankar’s obsession with the product.
“He spent 80% of the time on tech just to ensure that we have a service which doesn’t crash,” said Prateek Garg, managing director at Marigold Park Capital, an affiliate of Bodhi Tree.
Growing up in a small rural town in India, Shankar studied economic history with a goal of learning how to influence Indian society. He found journalism the closest answer to his career goal and joined the Times of India as a political reporter. He later became one of the founding editors of New Delhi-based environmental magazine, Down to Earth. In 1991, he was shocked by CNN’s live broadcasting of the first Gulf War.
“It blew my mind,” Shankar said. “My wife got frustrated with my obsession with TV and told me, ‘Instead of watching it, why don’t you go and do something?’”
He managed to get his first TV job at a network and spent more than four years building a 24-hour live news channel called Aaj Tak before joining the Murdoch family’s Star News as chief executive officer in 2004.
“One thing I knew as a journalist was I knew who was a good expert and how to go to that person to ask the right questions,” Shankar said.
The journalism skills helped him turn around Star News, and his work stood out. In 2007, he took over as CEO of Star India, the choice of Chairman Rupert Murdoch to the lead the company’s entire operation in that country.
“He gave me the license to make mistakes because I was untested,” Shankar said. The corporate DNA of Fox was “go create the market and then you make money in the market.”
India was just beginning to roll out 3G wireless service and had almost no Wi-Fi or broadband access. Shankar’s team started building a streaming platform called Hotstar and he went to every telecom company, begging for partnerships.
“They all rejected the idea and it was one of the most humiliating experiences I’ve ever had,” he said.
The efforts finally paid off after Hotstar offered the International Cricket Council World Cup for free in 2015, with a catchphrase “get over TV.”
It was a beginning of a digital revolution, with Ambani’s Reliance Jio telecom business launching 4G service with free data plans. The two Indian businessmen teamed up to jointly market Hotstar and Reliance Jio, which has since become the largest wireless carrier in India with 471 million subscribers.
Shankar rose to president of 21st Century Fox’s Asia business in 2017, overseeing all of the company’s operations in the region. By the time Fox sold its assets to Disney two years later, Star India’s value had soared to around $15 billion. Disney CEO Bob Iger gave Shankar the top job in Asia, leading the launch of its Disney+ streaming service in the region.
Shankar felt more comfortable in an entrepreneurial setting and joined James Murdoch, his old boss at Star India, to form Bodhi Tree. They raised $1.5 billion from the Qatar Investment Authority and others to invest in media deals including Viacom18 and an education technology startup.
Under Shankar’s guidance, JioCinema has been licensing films and TV programing from major Hollywood studios including Warner Bros. Discovery Inc., Comcast Corp.’s NBCUniversal and Paramount Global, which is selling its 13% stake in Viacom18 to Reliance.
Disney’s lucrative library will be soon onboard with the merger. The new company will have more than 100 TV channels and two streaming services, capturing about 35% of India’s total TV viewership and 45% of the premium video-streaming business, excluding YouTube and Facebook.
It’s not just movies and TV coming from Disney. The merged entity will also have IPL rights, along with the TV and digital rights to the International Cricket Council’s Cricket World Cup, part of a package of sports that will cost about $2 billion annually, according to a person familiar with the matter.
The research firm Media Partners Asia estimated that the combined businesses lost about $200 million on sales of $2.8 billion in the fiscal year ended in March. Profitability in the traditional TV entertainment business was overtaken by the red ink in sports and streaming.
“The overall business will be loss-making but if you bring the combined cost structure together, they’ll have more synergies and bargaining power,” said Media Partners founder Vivek Couto. The digital advertising revenue will continue to grow along with the growth of India’s economy over the next five years. “After the hard work’s done, let’s say in 12 to 24 months, they should become a pretty profitable scale business,” he said.
Besides capturing multilanguage sub markets, JioCinema aims to build its business around the cricket experience, starting with selling mobile emoji packs featuring IPL cricket stars. It’s a first step to getting consumers accustomed to digital wallets, Marigold executive Garg said. Viacom18 hired Google veteran Kiran Mani to build out the mobile business.
Its content strategy is opposite that of Amazon and Netflix, which pump out big-budget series in India. Shankar’s strategy is to produce inexpensive 30-minute soap operas every day to capture the audience and boost the number of daily active users, a key metric in digital advertising. Eventually, that online viewing will replace traditional TV.
“I’m a big believer in change,” Shankar said. “Sometimes it can be unnerving, it can be difficult, but eventually, I believe it leads all of us to a better place.”
VANCOUVER – Contract negotiations resume today in Vancouver in a labour dispute that has paralyzed container cargo shipping at British Columbia’s ports since Monday.
The BC Maritime Employers Association and International Longshore and Warehouse Union Local 514 are scheduled to meet for the next three days in mediated talks to try to break a deadlock in negotiations.
The union, which represents more than 700 longshore supervisors at ports, including Vancouver, Prince Rupert and Nanaimo, has been without a contract since March last year.
The latest talks come after employers locked out workers in response to what it said was “strike activity” by union members.
The start of the lockout was then followed by several days of no engagement between the two parties, prompting federal Labour Minister Steven MacKinnon to speak with leaders on both sides, asking them to restart talks.
MacKinnon had said that the talks were “progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved” — a sentiment echoed by several business groups across Canada.
In a joint letter, more than 100 organizations, including the Canadian Chamber of Commerce, Business Council of Canada and associations representing industries from automotive and fertilizer to retail and mining, urged the government to do whatever it takes to end the work stoppage.
“While we acknowledge efforts to continue with mediation, parties have not been able to come to a negotiated agreement,” the letter says. “So, the federal government must take decisive action, using every tool at its disposal to resolve this dispute and limit the damage caused by this disruption.
“We simply cannot afford to once again put Canadian businesses at risk, which in turn puts Canadian livelihoods at risk.”
In the meantime, the union says it has filed a complaint to the Canada Industrial Relations Board against the employers, alleging the association threatened to pull existing conditions out of the last contract in direct contact with its members.
“The BCMEA is trying to undermine the union by attempting to turn members against its democratically elected leadership and bargaining committee — despite the fact that the BCMEA knows full well we received a 96 per cent mandate to take job action if needed,” union president Frank Morena said in a statement.
The employers have responded by calling the complaint “another meritless claim,” adding the final offer to the union that includes a 19.2 per cent wage increase over a four-year term remains on the table.
“The final offer has been on the table for over a week and represents a fair and balanced proposal for employees, and if accepted would end this dispute,” the employers’ statement says. “The offer does not require any concessions from the union.”
The union says the offer does not address the key issue of staffing requirement at the terminals as the port introduces more automation to cargo loading and unloading, which could potentially require fewer workers to operate than older systems.
The Port of Vancouver is the largest in Canada and has seen a number of labour disruptions, including two instances involving the rail and grain storage sectors earlier this year.
A 13-day strike by another group of workers at the port last year resulted in the disruption of a significant amount of shipping and trade.
This report by The Canadian Press was first published Nov. 9, 2024.
The Royal Canadian Legion says a new partnership with e-commerce giant Amazon is helping boost its veterans’ fund, and will hopefully expand its donor base in the digital world.
Since the Oct. 25 launch of its Amazon.ca storefront, the legion says it has received nearly 10,000 orders for poppies.
Online shoppers can order lapel poppies on Amazon in exchange for donations or buy items such as “We Remember” lawn signs, Remembrance Day pins and other accessories, with all proceeds going to the legion’s Poppy Trust Fund for Canadian veterans and their families.
Nujma Bond, the legion’s national spokesperson, said the organization sees this move as keeping up with modern purchasing habits.
“As the world around us evolves we have been looking at different ways to distribute poppies and to make it easier for people to access them,” she said in an interview.
“This is definitely a way to reach a wider number of Canadians of all ages. And certainly younger Canadians are much more active on the web, on social media in general, so we’re also engaging in that way.”
Al Plume, a member of a legion branch in Trenton, Ont., said the online store can also help with outreach to veterans who are far from home.
“For veterans that are overseas and are away, (or) can’t get to a store they can order them online, it’s Amazon.” Plume said.
Plume spent 35 years in the military with the Royal Engineers, and retired eight years ago. He said making sure veterans are looked after is his passion.
“I’ve seen the struggles that our veterans have had with Veterans Affairs … and that’s why I got involved, with making sure that the people get to them and help the veterans with their paperwork.”
But the message about the Amazon storefront didn’t appear to reach all of the legion’s locations, with volunteers at Branch 179 on Vancouver’s Commercial Drive saying they hadn’t heard about the online push.
Holly Paddon, the branch’s poppy campaign co-ordinator and bartender, said the Amazon partnership never came up in meetings with other legion volunteers and officials.
“I work at the legion, I work with the Vancouver poppy office and I go to the meetings for the Vancouver poppy campaign — which includes all the legions in Vancouver — and not once has this been mentioned,” she said.
Paddon said the initiative is a great idea, but she would like to have known more about it.
The legion also sells a larger collection of items at poppystore.ca.
This report by The Canadian Press was first published Nov. 9, 2024.
