Brand Power

In a cluttered environment, how does a satellite channel stand out? Programming is only one pull. But a recognisable brand with the added imported premium could help create equity. As Sony Entertainment Television (SET), the 60:40 joint venture between Sony Corporation and the non-resident Indian-promoted Ace Telefilms, discovered.

In fact, the Sony brand has been synonymous with Japanese excellence in the Indian mindset. But if the link helped in initially creating an identity for the satellite channel, some market watchers will assert that SETs brand equity is self sufficient. Some will even say SET is a stronger brand than Sony in India today.

 

Eighteen months of existence and SET has emerged as a serious competitor to the satellite pioneer, Zee TV. Last December, Zee had an approximately 2.8 per cent share of the television-owning households in Delhi, Mumbai and Chennai. Sony was close behind with a two per cent share.

The commitment is reflected in the investments. Parent company Sony Corporation has pledged Rs 200 crore for the entertainment channel while Sony India, the consumer goods unit, has attracted approximately Rs 38 crore. India is also the first market where Sony has created a nationwide presence in the entertainment business. In countries like Singapore and Australia, Sonys entertainment channels are regional players.

One of the reasons for the success is Sonys decision to develop indigenous software. While channels like Star have moved to Indian programming only late last year, Sony imbibed the local flavour fast. Secondly, Sony is positioned purely as a family entertainment channel. Unlike Zee, Star and Doordarshan, which had liberal doses of business, news and current affairs programmes, Sony steered clear from such distractions. Says Kunal Dasgupta, chief operating officer, SET, You can never be something for everybody. That is Doordarshans role.

In recent months, its strategy has been to bag telecast rights for major events like Lata Live: The Queen in Concert and Filmfare awards. Even the choice of films has ranged from Hindi classics to recent blockbusters. This mix has consolidated the channels ratings.

Besides, as Dasgupta points out, The channel has capitalised on the credibility attached to the Sony brand name. Sonys image worldwide is of a clean corporation, a pioneer of hi-tech electronics. In the entertainment business too, SET has maintained this expertise. For instance, it washes old prints of Hindi films to improve their telecast quality.

The programme mix was changed last year. The thrust is on interactive programming, which is up from five per cent in 1995 to 26 per cent today. The share of soaps and sitcoms has come down from 35 per cent to 15 per cent while films comprises 39 per cent and dubbed programmes six per cent.

The channel is gungho about its performance. We expect to surpass Zees penetration level by December. Although we still have to catch up with them financially, in the long-term, Zee will not be able to match Sony, says Dasgupta.

Yet, he is worried about the implications of the Broadcast Bill Being debated in parliament, it proposes to impose a 49 per cent ceiling on foreign holdings in broadcasting companies. If the Bill is passed in its present form, let alone extending its brand name, Sony Corporation may consider pulling out of the venture, says Dasgupta. This when it has got FIPB clearance for a production company with an 80 per cent stake.

Sony entered the entertainment sector after assurances from the then prime minister P V Narsimha Rao that it would be allowed to freely conduct its business. Any reversal now will send wrong signals to investors, says Dasgupta. Sony Corporation is extremely distressed over broken promises, he says.

Unlike the entertainment venture, Sony Corporation is facing trouble in the consumers electronics sector. While its brand stood for excellence and held a premium when it was imported, the Indian subsidiary has been unable to capitalise on this. It first entered the market with a tie-up with Orson in the early eighties. But the brand name Sony-Orson failed to make an impact and even devalued the parent brand considerably. Two years ago, it entered on its own. But even so, Sony has found that a foreign name is not enough for the price sensitive Indian consumer. The Indian subsidiary is now changing tack from the premium end to carve a niche in the budget and small TV segment.

So while the brand synergies have helped the entertainment channel, in the core consumer electronics business, Sonys equity is not powerful enough -- at least in the short run.