 "Colors Infinity")
Nearly eight years after Viacom 18 launched Colors in Hindi, it is extending the brand into the English GEC space with Colors Infinity. Launching this month, the channel which will be available in both HD and standard definitions (regular) will be the network's biggest addition in this genre where it already has two niche channels, VH1 and Comedy Central. The channel aims to start its innings with a reach of 30 million viewers in the target group across metros and cities (with population between 1,00,000 to one million) on the back of robust content, marketing and distribution. Sudhanshu Vats, Viacom18 Group CEO in conversation with Urvi Malvania, sheds light on the network's idea behind taking brand 'Colors' beyond the Hindi and regional space and what the new channel and brand can do for each other. Excerpts.
What is the significance of using the brand Colors for the new channel?
There are three components to this decision, borne out of research and strategic thinking, or our judgement. If you look at the consumer research, what comes out consistently is that Colors is progressive, urban, modern, disruptive-innovative and is doing things out of the box. These are traits you would need while entering the space of English GEC's (general entertainment channels).
Also, Colors as a brand resonates very well with the English speaking audience. These people are already consuming the brand in Hindi, particularly the non-fiction content. So there is a very clear brand equity, clear brand resonance and thus it has the ability to interest this set of audience.
Secondly, we are a little different from some of our contemporaries in that we are a multi-brand media company (specifically in broadcast). Our brand in the GEC genre is going to be Colors. We have it in Hindi and then through the rebranding exercise recently (of ETV regional channels) in regional as well and now in the English GEC space. So we are strategically building brands in different genres. We have Colors in the GEC space, Nickelodeon in the kids' space and MTV in the youth space.
Lastly, Colors gives it (the new channel) a wider appeal. But down the line, Infinity will continue to drive up the brand image of Colors among the key audiences. As this channel becomes popular with the right set of people, the urban mindset audience, it will give back to brand Colors. Based on all this, we then set about acquiring content.
What is the story behind the name Infinity?
One always looks at a lot of choices before zeroing in on a particular brand name.
We too did that. We finally looked at what is it that will be unique as a name. We also wanted the name to connote 'international' because it is an English offering. If you just say Colors, the layperson might get confused. Finally, the word in some ways conveys one of the messages we want to give, which is about infinite possibilities, dimensions that can be explored.
Did the decision take into account the advertiser confidence in brand Colors?
Yes of course. From the advertiser perspective too, Colors is a brand that resonates with them. So then it makes the task that much simpler (for the team).
With 2000 hours of content and many 'first time in India' acquisitions, the cost of the channel has to be huge. Do you see margins taking a hit this past quarter because of this?
So if you ask me are we making significant investment in the launch, I won't be able to give out specific numbers and the right kind of investments to deliver a great quality product. But the way I would like to talk about it is that with the size and scale we have reached now, is it materially going to alter my margin profile? The answer is no. My margin profile, on account of this launch, will remain quite steady, about that I am quite bullish.
So if my margin is 'x' and after this, it may be 'x minus y', the latter will not be in negative. We are on a trajectory where our profitability is now growing so we will have a profit expansion. Basically, the investments we are making,will be taken care of by the increase in profits. So I don't expect the margins to be diluted.
Having acquired so many hours of content across formats, will we see more Hindi/regional adaptations within the network?
We shall continue to explore synergies. Whether it is English shows inspiring Hindi content, or in fact regional, you will see a lot of synergies. And you will see these translated in different ways. It could be the same format running into multiple languages which you have seen in our regional piece already (Bigg Boss is present in Kannada and Bengali) or it could be a show that is remade into a particular language.
Any other brand extensions in the pipeline after Colors and MTV?
That time will tell. I have always said we will continue looking at opportunities to widen deepen our reach within the genres we are present. So for now, wait and watch.
COMING SOON: 2 NEW CHANNELS
- Two channels to be launched: Colors Infinity and Colors Infinity HD
- Farzad Palia to head the new entity, he currently looks after Comedy Central and Vh1
- Content to be co curated by Alia Bhatt and Karan Johar
- Nearly 2,000 hours of content from studios like MGM, Shine Australia, Fox, NBC Universal and BBC apart from other independent content creators already acquired
- Shows across genres, including documentaries and mini-series
- Disruptive programming and scheduling; programming not only in English and shows released on television as well as Netflix to be acquired
