From the desk of Strategic Resources
For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address: 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: XII

March, 2008

Click on any of the above

In these hyper charged times where news comes in as fast as it becomes outdated, we need a source that can keep track of what matters to us. At ZenithOptimedia we have created Wavelength to apprise all of us of the happenings in three areas i.e. 1. Trends in Digital, Retail, OOH, BRIC, Consumers and the International Advertising 2. Media & Advertising Research 3. Environment

Also included here are innovations and news that ZenithOptimedia is making across its network globally, under three sections 1. ZO Zone 2. Fast Forward 3. Touchpoints.

Simply click on any of the sections on our snazzy control panel and you will have the latest updates at your fingertips. Wavelength will reach you in the first week of every month so that you have information that leads to insights.

Drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions and comments.

Emerging Trends: Consumer

01. India slides two notches in the Nielsen Global Consumer Confidence Index – Jan 31

India dropped 2 points to reach 133 in the Nielsen Global Consumer Confidence Index survey, conducted from October to November 2007. This is the third consecutive reduction for India since its peak score of 137 in late 2006, and has pushed it to second position in the index behind Norway. However, this decline has coincided with consumer sentiments worldwide with an expected global recession this year reflecting in suppressed confidence in 21 of the 48 markets surveyed. Likewise, 27% of the Indian respondents fear a global recession in the next 12 months.

Source: Agencyfaqs

Emerging Trends: Digital

02. Corporates reach out through blogs – Feb 08

The growing ability of blogs to influence public opinion is being noticed by the corporate world. According to research by EmPower Research Knowledge Services Private Limited most corporate blogs focus on sales, branding and knowledge. According to Sangita Joshi, Co-founder and Managing Partner, EmPower Research, the nature of corporate blogs will depend on the company's target audience and they can be used as a social networking medium by which the company can improve its branding. HLL's Gang of Girls blog can, for instance, serve as a feedback forum for the company.

Source: Newindpress.com

03. 55% Indians use the Internet to make purchases – Feb 04

A global online survey conducted by Nielsen to study the Internet-spending habits of consumers around the globe showed that the purchase decisions of 78% of the respondents in India had been influenced by the Internet and 55% of them had made an online purchase. The survey also revealed that the Internet is emerging as a key source for buying travel tickets in India with nearly 73% people making online ticket reservations – the highest among Asia-Pacific countries. Credit cards were the preferred mode of online payment, with 84% choosing to pay with a credit card. Special offers influenced the buying habits of 48% of the respondents, while 26% got influenced by online advertising and 22% relied on online reviews.

Source: Agencyfaqs

04. Digital advertising to be the epicentre of economic growth in India – Feb 01

At the Compass 2008 seminar organised by Starcom and Future Works, the panel discussed new media opportunities to build a brand, increase consumer loyalty, and increase market share in the digital world. The following points were highlighted:

· Shailesh Rao, managing director, Google India, said, “Digital advertising is going to be the epicentre of economic growth in India. Both agencies and marketers need to analyse if this medium is just a phase or here to stay.”

· According to Vikas Gupta, founder and director, 9.9 Mediaworx, mobiles hold a unique place in the space of digital advertising as “Mobile operators have the facility of knowing every consumer individually and can thus target its advertising to each consumer individually”.

· Partho Sinha, chief strategy officer, South and Southeast Asia, Publicis Worldwide, stated that one-to-one interaction with mobile operators empowers consumers and this trend is expected to continue. Rao was also of the view that brand management could channel this consumer power to its advantage if companies are willing to experiment and adapt.

Source: Agencyfaqs

Emerging Trends: Retail

05. “Brothers in arms” – Brands and Retail developers - Feb 22

The 9th Marketing and Retail Conclave 2008 discussed at length whether brands and retail developers could work together. Issues discussed at the summit included shopper behavior, services retailing, branding, building and launching iconic brands, expanding business in emerging markets, to name a few. It was observed that even if the modern trade retail market grew at a 50% CAGR, the kirana stores will evolve themselves to adjust to the changing market situation. The speakers discussed how rationalisation between developers and retailers is important for the two to co-exist.

Source: Exchange4media

06. “Franchising” holds immense growth potential – Feb 16

According to Asitava Sen, vice-president, retail and consumer goods, Technopak Advisors, franchising accounts for only 2% of the total retail sales. This translates into immense potential owing to the growing aspirations and prosperity of the middle class, changing lifestyles, entrepreneurial culture and the English-speaking service class population. Even from a regulatory standpoint, franchising as a viable business structure is said to score over FDI. Franchising successes include service sectors such as education, healthcare and hospitality.

Source: Financial Express

07. The India Fashion Forum – (Feb 07- 08)

Industry experts at the India Fashion Forum 2008 highlighted the following points:

· Consumerism, triggered by advertising, is growing fast and products have become a form of an identity for people.

· Ireena Vittal, Principal, McKinsey & Co, said that the Indian retail market will be around $415 million by 2015.

· 38% of Indians shop on special occasions such as weddings and festivals and that 11 to 12% of the Indian population were consuming 80% of all value-added products and services.

· Few precautions such as using one’s own supply chain management, financial strength, and the right kind of merchandise should be taken to ensure maximum penetration of the market.

Source: Business Line

Emerging Trends: OOH

08. Out-Of-Home is rapidly turning into a preferred media choice, with an audience focused approach – (Feb 11-17)

Outdoor advertising has now evolved into a paradigm called Out-Of-Home with the advent of digital era. The out-of-home industry is growing rapidly propelled by three factors; innovation, changing consumer behavior and meeting advertising needs. According to industry experts, focus shift from media to the target audience and continuing evolution of Out-Of-Home by creating multiple ways of reaching and engaging the consumer has turned the medium into an attractive media choice. According to Adille Sumariwala, Managing Director, Clear Channel India, the Out-Of-Home media is a 1200 crores industry that is rapidly growing at a pace of 15% year-on-year while PricewaterhouseCoopers claims it will be worth Rs. 2000 crore in 2010.

Source: Impact

Emerging Trends: Others

09. FM increasingly deploying humour – Feb 18

Leading FM players are using humour as a tool to communicate effectively with consumers. “Babbar Sher” couplets on Radio City, “Sharmaji Se Poocho” on RED FM, “Chai With Charan” on Radio One, and “Sud – Hassi Ke Phuwarey” on Radio Mirchi bearing testimony to the new era of humour that is being welcomed by the industry as well as the listeners.

Source: Exchange4media

10. WoM gains popularity – Feb 15

Word of mouth (WoM) is increasingly finding its way into the promotional strategies of most brands. An AC Nielsen study estimated that Word-of-Mouth marketing spends stood at $1 billion in 2006. Abdul Khan, vice-president and all India marketing head, TATA Teleservices, said that it is due to the ever-increasing ad clutter and the mounting pressure to keep pace with technology that compels marketers to resort to newer methods of promotion.

Source: Agencyfaqs

11. Search engine marketing is intensifying customer reach & impact - Feb 12

Search engine marketing, a popular concept extensively used in the developed countries is gaining ground in India for a deeper customer reach as the number of internet users in India is multiplying everyday. A large number of Indian web solution companies, that provide a gamut of search engine marketing solutions, are capturing a large share of globally outsourced internet-marketing businesses giving a boost to the industry and employment.

Source: American Chronicle

Emerging Trends: International

12. Digital advertising outpaces TV – Feb 21

The Association of National Advertisers and Forrester Research, a research firm, said that 62% marketers believe that TV is losing its effectiveness and that marketers are looking for newer digital platforms for video commercials. According to a study by the firm, 65% marketers are trying out advertising on online TV shows, 55% are considering Video on Demand (VOD), 43% find interactive TV ads to be a viable option and 32% would consider placing ads on set-top box menus.

Source: MediaPost

13. Marketers increasing expenditure on digital marketing – Feb 18

Marketers are increasingly spending on digital marketing channels such as the Internet, even as they cut their expenses on other marketing channels due to the economic recession. It is expected that marketers will not reduce their expenses on search and e-mail as these provide the best return on investment.

Source: MediaPost Publications

14. Visitors to magazine websites increase by 8.1% during the fourth quarter of 2007 – Feb 14

According to Web data collected by Nielsen Online, the top 320 magazine websites received an average of 67.5 million unique visitors per month during the fourth quarter of 2007 – an 8.1% increase over the figures for the same period in 2006. Magazine websites reached almost 42% US online population of about 160 million in the fourth quarter, an increase of 7.1% over last year. In terms of unique visitors per month, magazine websites bettered newspapers, where the total unique audience for newspaper websites increased 9% in the fourth quarter to an average of 62.8 million per month.

Source: MediaPost Publications

15. Spending on branded-entertainment marketing expected to grow by 13.9% in 2008 – Feb 13

According to a report published by media research firm PQ Media, spending on branded-entertainment marketing grew 14.7% to $22.3 billion in 2007, and is projected to grow by 13.9% in 2008 to $25.41 billion. The growth is expected to be driven by increased spending on event marketing, product placement, particularly on reality shows, and growth in webisodes, as major networks begin to produce full-length online episodes in an effort to tap the youth market. However, the growth rate is projected to decelerate slightly in 2009 due to slower economic growth, maturing markets and the absence of cyclical spending infusions, such as political campaigns. PQ Media defines branded entertainment marketing as event sponsorship and marketing, paid product placement, advergaming and webisodes.

Source: WorldScreen.com

16. Number of mobile TV subscribers to grow worldwide – Feb 12

Research conducted by ABI Research forecasts that the total number of mobile TV subscribers worldwide will grow to 462 million by 2012. This growth will be driven by the expansion of 3G networks and flat-rate plans for mobile video. The development and expansion of mobile video delivery networks and an increase in the amount of available content will also contribute to the market's growth. The research considers Asia Pacific as the overall leader in the adoption of mobile video services; the number of subscribers in this region is expected to grow from 24 million in 2007 to more than 260 million by 2012.

Source: Center For Media Research

17. Consumer relationships key to ad agency’s success – Feb 11

According to a Forrester Research report traditional advertising and media agencies will give way within five years to a new type of agency with greater data analytics and planning skills. The report predicts that industry relationships may even change to the extent that, instead of pitching for a brand’s business, agencies may ‘sell’ access to groups of consumers in whose interests they operate. An agency will, in the future, have to learn to connect itself with defined communities of consumers and cultivate insights into their behaviour to be successful. Co-author of the report, Mary Beth Kemp, believes that media companies will try to compete with ad-agencies in order to cater to consumer groups.

Source: The Economic Times

18. Viewers expected to watch more TV shows online if viewership experience is enhanced – Feb 07

A report from Jupiter Research suggests that TV broadcasters may be able to attract 15% online population to TV shows online if certain steps are taken to increase demand. The report recommends that TV networks should adopt some social tools that allow users to create and share clips from 30-minute or hour-long episodes online. Such moves would help TV network sites pull in young viewers who typically gravitate toward social networking or video-sharing sites. TV producers can also provide more comprehensive program libraries online as one-third of the people surveyed said that being able to watch any show online for free was a key factor in their online TV viewing pattern. The report forecasts that online video advertising will hit $2.3 billion in 2012, up from $554 million in 2007.

Source: MediaPost Publications

19. Digitalizing the Print media garners increasing revenue – Feb 05

Online display advertisements have become an important source of revenue for newspaper websites due to an increase in online classified ad revenues in 2007. There has been a rise in the desirability of local newspaper websites as advertisement platforms. Companies can also, in addition to these websites, place display ads in e-newsletters and email updates. This has prompted organizations to create combination online-print services that can run ads in newspapers as well as websites.

Source: MediaPost

20. Advertisers to become more creative while communicating messages – Feb 02

With newer media of advertising springing up, ad agencies, media buyers, TV networks and cable operators have unveiled new pacts that aim to provide an advertiser with second by second information on how potential viewers of commercials watch TV. The deals are all geared toward collecting data on audience behaviour, so that advertisers can target them with ads that are more relevant to their lives, said Michael Kelley, a partner in the entertainment, media and communications, PWC. He added that with the rise of hundreds of cable and web outlets devoted to niches, audiences have become smaller and more concentrated. These new deals will pave the way to paying for media that deliver audiences who exhibit an affinity for a particular product or service.

Source: Exchange4media

21. Marketers not confident about tracking campaigns across multiple channels – Feb 1

According to the Annual Interactive Marketing Survey by Sapient, more than half the senior-level marketing respondents felt ‘somewhat confident' or ‘not confident’ in their organizations’ abilities to track campaigns across multiple channels in real-time, whereas only 16% were 'highly confident'. The survey revealed social networking as the least ‘trackable’ digital channel, whereas e-mail and search were cited as the two most trackable ones. According to Sapient Chief Creative Officer Gaston Legorburu, "In 2008, marketers will seek the ability to seamlessly incorporate social networking with their other channels, including search and email, and the capability to monitor and measure performance to ensure they are achieving optimum results."

Source: Center For Media Research

22. Return on Experience (ROE), a new yardstick for experiential marketing – Jan 30

A recent survey by Jack Morton Worldwide revealed that despite lacking measurements to prove ROI, marketers still plan to spend between 5%-10% more on experiential marketing in 2008. The study propounded a mélange of ROI and ROE (Return on Experience), which looks into various facets of a campaign vis-à-vis the quality of the audience participating; their attention span, their perceptual and behavioural changes etc. The survey reinforced the need for brands to "do" more and "talk" less. It also revealed that experiential marketing has several positive benefits notably in both driving word-of-mouth advocacy and building brand awareness and relationships.

Source: MediaPost

23. Study reveals purchase intent grows with each event – Jan 28

A survey by the Advertising Research Foundation, New York states that, “In-person events can boost purchase intent as high as 52%,” and that sports-related events have the greatest impact. “It creates a presence that is unexpected, fresh and different,” said Mark Gibson, assistant VP - Advertising at State Farm, Bloomington, IL. 46% of respondents felt they had an emotional connection with the brand after interacting with it at a trade show. “There are many connection points you can build at an event whether it is emotional, aspirational or awareness building—it goes beyond just counting audience attendance,” said Raymond Pettit, co-author and SVP at MarketShare Partners in Los Angeles.

Source: Brandweek

24. Ad spending in the US to see moderate growth in 2008 – Jan 28

According to a report released by WPP's GroupM, the US market will witness growth in ad spending to the tune of 3.7%, driven entirely by two factors – cyclical stimuli such as the Olympics and elections, and increased ad spending on the Internet. TV is expected to contribute more than half to the total global ad spending growth as it has a much larger base and strong rate of growth in developing nations. By comparison, the Internet will account for nearly a third of the growth in global ad spending.

Source: Media Post Publications

BRIC Zone - China

25. Mobile advertising market in China to grow – Feb 22

According to Peter Tsang Cheung, chairman of MyClick Media, which specializes in developing mobile media technology for e-marketing, mobile phone marketing is the emerging medium and using campaigns that target specific audiences will enhance brand images. Mobile phones have a higher penetration than personal computers, and hence potentially a more powerful tool for companies to heighten awareness of their brands among targeted consumer groups. He further added that mobile advertising market would increase eight-fold by 2011.

Source: South China Morning Post

26. Companies to focus on detailed strategies in China to ensure lasting brand loyalty – Feb 7

Recent research from the Boston Consulting Group (BCG) reveals that with Consumer Disposable Incomes in China expected to rise at three to five times the rate of the rest of the developed world, China is expected to be the world's third-largest consumer market by 2010 and the second-largest by 2015. The findings also reveal that Chinese consumers are more cautious and less brand-loyal and that their shopping habits greatly differ from their Western counterparts. Companies, therefore, need to shift their focus from footprint expansion to more detailed strategies. BCG suggests that marketers in China should ensure their claims are tangible and delivered credibly.

Source: MediaPost Publications

BRIC Zone - Russia

27. Russia reports a decline in cellular phone subscriptions – Feb 15

According to AC&M Consulting, the number of cellular phone subscribers in Russia declined by 4.6% from 172.87 million to 164.84 million in a span of one month in January 2008. The decline was attributed to a change in the accounting policy of Russia’s no. 2, cellular provider, VimpelCom.

Source: Russia & CIS Business and Financial Newswire

28. Number of Russian homes with broadband Internet access could double in 2008 – Feb 11

According to Russia Information Technology and Communications Minister Leonid Reyman, the number of homes with broadband Internet access could double in Russia in 2008. In 2007, 4.8 million Russian homes had broadband Internet access. Reyman also said that the cost of Internet traffic would also go down after the construction of networks by operators Comstar, Synterra and Golden Telecom.

Source: Russia & CIS Business and Financial Newswire

BRIC Zone - Brazil

29. Brazil witnessing retail boom – Feb 18

According to the Brazilian Census Bureau, a statistical firm in Brazil, retail sales grew by 9.9%, and the sector’s revenue rose by 14.1% in 2007 over the 2006 figures. Only one of the five segments that comprise the retail sector recorded a rise in December against November: hypermarket, supermarkets, food, drinks and tobacco (0.2%). Furniture and domestic appliances fell by 6.2%; textile, clothing and shoes by 2.2%; fuel and lubricants by 2.3% and vehicle, motorbikes and auto parts by 2.1%.

Source: Gazeta Mercantil News (Real Time)

HOME

Media & Advertising Research Watch

AdEx Findings

30. The Telecom Sector – Feb 15

Print advertising by the telecom sector saw a 15% increase in 2007, compared to the figures in 2006. Telecommunication Services had the largest share of 56% of overall print ad pie of Telecom sector in 2007. The Telecom Equipment Sector recorded a growth of 57% in 2007 in print advertising over 2006.

Source: Exchange4media

31. The Airline Sector – Feb 22

The Airline sector recorded a growth of 23% in print advertising and 6% in TV advertising in 2007 over 2006. Domestic Airlines and International Airlines did print advertising in the ratio of 69:31 during 2007. Domestic Airlines garnered 69% share of Airline sector advertising in Print during 2007. Domestic Airlines ad volumes grew by 27% whereas International Airlines ad volumes grew by 14% in Print during 2007 over 2006.

Source: Exchange4media

32. Growth of TV advertising in 2007 – Jan 29, Feb 05

In terms of volume, TV advertisements in India increased by 31% year-on-year in 2007. General Entertainment Channels accounted for the maximum TV advertising, whereas Print Media and Radio Channel promotions on TV grew by 45% and 172%, respectively.

Source: Indiantelevision.com; Indiantelevision.com

33. The Automobile sector

2007 saw a 19% increase in the TV ad volumes for automobile advertising compared to 2006.

Source: Indiantelevision.com, Exchange4media

HOME

Environment Watch

Regulation

34. FM acquires a new dimension – Feb 23

In an attempt to boost the FM radio sector in India, TRAI has recommended the expansion of operations, broadcasting of news, and increase in FDI to 49%. The TRAI chairman has suggested that FM radio broadcasters should be permitted to broadcast news using content from AIR, Doordarshan, authorized news channels, PTI, UNI and any other authorized news agency.

Source: New Indian Express

35. TRAI allows HITS to commence operations – Feb 16

The existing permission-holders of Headend-In-The-Sky (HITS) service –Dish TV and Noida Software Technology Park Ltd – will be allowed to start operations after they give an undertaking to the government that they would migrate to the new regime within three months of the notification of the fresh licensing norms. The government also plans to consider requests received for approvals concerning change of satellite and additional channels within the framework of the existing HITS permission.

Source: Daily News & Analysis

Environment Watch: Advertising & Media

Television

36. Major concerns surrounding IPTV – Feb 23

The I&B Ministry has expressed concerns about user-generated contents, regulations, interactivity with regard to IPTV. Roop Sharma, president, Cable Association of India, has called for uniform taxation, uniform pricing and regulation for IPTV, as well as interoperability of set-top boxes. According to him, the consumers should be able to decide which free-to-air channels should be provided to them. Pavan Duggal, chairman, Cyber Law Expert Committee, Assocham, said that the IT Act, 2000, covered IPTV services as a segment and the law itself was complete in all respects, including the legal content.

Source: Exchange4media

37. UTV gears up for an impressive turnover – Feb 18

UTV, a media and entertainment company, launched its Hindi movie channel in February 2008 and plans to launch an English news channel in March 2008, titled “UTV Movies” and “UTVi”, respectively. These would be the latest launches by UTV after Bindaas, Bindaas Movies and World movies, making UTV a company worth Rs 400 crore by March 2008.

Source: The Press Trust of India Limited

Print

38. Business Standard tapping market through national language newspaper – Feb 22

Business Standard, in an attempt to consolidate its position and increase readership, has decided to launch its Hindi edition. The newspaper would be launched in Delhi, Mumbai, Chandigarh and Lucknow. A promotional message for the new edition says, this launch is sure to provide better business solutions and that too in the mother tongue.

Source: Exchange4media

39. “Real life” stories and the “Made in India” package look promising to publishing firms – Feb 21

Publishing companies in India are set to woo their readers with real life stories from the business world. They consider that stories on Ratan Tata and Nandan Nilekani will appeal to the Indian consumer more than a book on Jack Welch. Publishers such as Penguin and Wiley India are collaborating with Indian publishing houses for this purpose. Mitra, senior managing editor, Penguin books, feels that this would double book sales in the next three years.

Source: Exchange4media

40. ET in Hindi: A major leap by the Times group to increase readership - Feb 19

Nearly a year after launching a Gujrati edition of the Economic Times, The Times of India launched the Hindi edition of the newspaper in Delhi in February 2008, in an endeavour to reach every Indian house through country-wide editions.

Source: The Economic Times

Radio

41. Radio gains precedence as a marketing tool – Feb 18

Radio is rapidly becoming a vital tool for word-of-mouth, viral marketing and referral marketing, especially in the interior markets. With TV losing its impact, coupled with the low penetration level of print media, radio is now gaining acceptance among big as well as small advertisers as the new medium to advertise. The interactive feature of the medium gives it credibility, ‘stickability’ and acceptance. A steep growth has been witnessed in the confidence that media players have vested in the radio industry. The positive impact of radio on the advertising arena is being felt and echoed by eminent personalities such as Anjali Nayar, client services director, Saatchi & Saatchi, Pradeep Dutt, consultant, Insights and Rural Marketing and Praveen Sharma, COO, Madison Media Plus.

Source: India Radio Bulletin

42. Radio reaches out to people in a meaningful way – Feb 18

An upswing in radio advertising has made it a commercially lucrative proposition, both monetarily as well as in terms of the increased target group. Of late, the government has been using radio to disseminate important social messages. According to the December 2007 AdEx data, the government is the 4th ranked advertiser with TV channel promotions, real estate and social messages advertising topping the list. In Kolkata, West Bengal AIDS Prevention and Control joined the bandwagon, along with the Ministry of Health (with polio and anti-tobacco campaigns), the Department of Income Tax in Mumbai, and the Government of Delhi.

Source: India Radio Bulletin

43. Radio – thinking globally but acting locally - Feb 18

Radio channels are adhering to “Think globally and act locally” mantra to capitalize on ad sales. The creative, interactive and ‘local’ nature of the medium qualifies the medium as an effective advertising platform. “The focus while pricing this platform is not on selling the space, instead it is on to work cohesively towards going after the shares of the other media”, says Anil Srivastava, COO, Radio Today. According to the COO, Red FM, “Listenership rankings, stations creative flexibility and inventory management, are the determinants of the price”, but at the same time Radio Indigo, emphasizes on the premiumness of its audience.

Source: India Radio Bulletin

44. With its fast-spreading reach, radio offers great opportunities for sonic branding – Jan 30

Radio is, according to industry experts, is proving its mettle as an effective and prominent medium for promotion & advertising. Current industry trends suggest that a fast-spreading reach combined with innovative and creative ad propositions have caused the radio to evolve from being just a media multiplier into an innovative activation-led customized solution. The rising accountability of radio as a medium, minimal production time and customization and increase in out-of-home listenership has made the radio an enhanced value proposition for advertisers. Key issues which await resolution, however, are desired differentiation in programming and audience interest stimulation.

Source: Livemint

HOME

Touch Points

Touchpoints is a unique tool for ZenithOptimedia clients that provide clear actionable metrics for all contact points used in marketing products and services.

For a detailed presentation on Touchpoints contact Mr. Pavan Chandra at pchandra@zenithoptimediaindia.com or call at +91-9899-3767-68

HOME

ZO Zone

Viewership Analysis of Music Channels for 4 weeks for the period of 3rd February 2008 – 1st March 2008

Top 2 Programs Across Music Channels

Source: TAM

Period: 3rd Feb 2008 – 1st Mar 2008
Market: All India
TG: 15-34 Male/Female AB CS

Change In Channel Share 2007 vs 2008

Source: TAM

Period: 3rd Feb 2008 – 1st Mar 2008
3rd Feb 2007 – 1st Mar 2007
Market: All India
TG: 15-34 Male/Female AB CS

Top 5 Program Ratings Across Various Target Audiences

Source: TAM

Period: 3rd Feb 2008 – 1st Mar 2008
Market: All India
TG: 15-34 Male/Female AB CS

Advertising Spend Analysis for Readymade Garments Category for the Year 2006 & 2007

Readymade Garments

Monthly Media Expenditure

Source: IMRB & AC Nielson
(Reported Figures)

Readymade garments Category – Brandwise spends

Source: IMRB & AC Nielson
(Reported Figures)

Medium Breakup

Source: IMRB & AC Nielson
(Reported Figures)

Genre Breakup

Source: IMRB & AC Nielson
(Reported Figures)

HOME

Fast Forward

TECHNOLOGY SERIES – WHITE PAPER

IPTV AS A CHANGE ENGINE FOR THE DIGITAL TV INDUSTRY

MARC ULDRY

IPTV Product Manager,

Nagravision

Marc Uldry started his career in 1999 in set-top box software engineering when he first joined Nagravision. He contributed to the development of the Nagra secure kernel and its integration into third party decoders. In 2001, Marc became program manager, responsible for the launch and the extension of major digital TV platforms around Europe such as Premiere in Germany and TV Cabo in Portugal. In 2004, Marc took over the IPTV product management function with the responsibility to develop and expand Nagravision solutions into the IPTV market. Marc holds a Masters of Science in Micro-engineering from Swiss Federal Institute of Technology.

and by

ROBIN WILSON

VP of Business Development,

Nagravision

Robin has spent 20 years in marketing and engineering roles for companies based in Europe and the US including NBC, BBC, Grass Valley Group and at DiviCom where he managed the first 4 generations of highly successful compression solutions and established the initial European presence. Prior to Nagravision, Robin co-founded an advanced compression (H.264) start-up and consulted for PVR, security and VC organizations world-wide. Robin graduated with a BSc. degree from Dundee University, Scotland, and holds a watermarking patent.

with the additional editorial contribution of IVAN VERBESSELT

Principal Quadratio Consulting

TABLE OF CONTENTS

1 Introduction

2 Bundling and cross-selling between IP broadband, broadcast and mobile

3 Software or hardware security - What is better?

3 Key length

3 Ubiquitous interactive bandwidth... and what about smartcards?

4 The home network reality... Client media devices all over the place

5 The right tool for the job. From conditional access to content protection to... service protection

INTRODUCTION

With the advent of sizeable commercial deployments on a worldwide basis, IPTV is starting to induce some fundamental changes in the way digital media are being produced, delivered and consumed. In this respect we may well find ourselves at a pivotal moment for the digital media industry in which some key drivers of change will have a significant impact across the whole end-to-end delivery chain. We are convinced that the impact of those change drivers will extend way beyond the boundaries of IPTV as such and will also influence the established broadcast delivery chains on many fronts, especially in the area of content protection. But the influence goes both ways. Inversely, cross-over projects between DVB and IPTV are equally bringing an opportunity to leverage some old broadcast wisdom into the IPTV world.

Let’s explore some of these axes of change…

BUNDLING AND CROSS-SELLING BETWEEN IP BROADBAND, BROADCAST AND MOBILE

A clear consensus is emerging throughout different market research that a significant part of the subscriber uptake will in fact be hybrid deployments where IPTV and broadcast (satellite, terrestrial or cable) will mutually enrich each other in a single combined service (e.g. TDG Research pointing to 75% hybrid within a 37Million IPTV

subscriber base by 2010). In some geographies such hybrid deployments are an obvious choice to maximize the richness of the content offer but also to address e.g. satellite coverage issues in urban areas. Likewise, even in areas where terrestrial broadcast has no strong footprint yet, it will present a very cost effective addition to an IPTV offering without unnecessary waste of interactive bandwidth.

The actual approach much depends on the precise situation of a given service provider in terms of local natural allies and content bouquets, but the best practice clearly points to pragmatically combining the best of broadcast and IP broadband whenever possible. In this sense, some established broadcast principles in terms of automated service discovery and push VOD services are even starting to have a reverse influence on IPTV.

However, beyond the operational tendency to maximize infrastructure reuse, the real success of any hybrid deployment has to be judged on its commercial success which will largely depend on the ‘consistency of experience’ that can be offered to an end-user irrespective of the delivery network.

This is even more a challenge when mobile video services are added to the mix. When one really wants to exploit the full ARPU potential of cross-selling between terminals and networks an integrated approach is a must for the content-centric elements of the solution: (i) the content management defining the content business rules, (ii) the service delivery platform presenting the business logic to the end users and (iii) the content protection enforcing the content business rules.

In this sense, it is clear that content protection is addressing a lot more than a security challenge, it increasingly evolves to a cornerstone of the end-to-end architecture which is truly service defining.

SOFTWARE OR HARDWARE SECURITY WHAT IS BETTER?

Here there are some of the greatest confusions surrounding security. The fundamentals:

• Security software runs on hardware

• Security hardware runs software

So what does software or hardware security really mean?

Firstly your house door-lock is hardware security. Pretty much everything else used to secure digital content always uses a mixture of hardware and software.

The real issue is does the security software runs on secure or insecure hardware?

A solution where the secure software runs on a secure hardware is based on a unique interface with the CPE and its applications, which limits the number of doors hackers might use. In comparison, a solution where the secure software runs on an insecure hardware, usually called software-only solution, has to control many more doors: CPU, applications, OS, etc.

In Nagravision we always use secure hardware to process the critical keys or to provide an unalterable authentication signature. Besides the Nagra Cardless solution relies on mpeg-chipset security features, being therefore much more secure than a software only solution without requiring any additional hardware component in the consumer device. That way critical security information cannot be “sniffed” as could be the case in a design running on insecure hardware.

The piracy industry has already shown that software, even obfuscated and tamper resistant, can only be sustained for a matter of weeks in the hands of pirates. One of the most significant software piracy on obfuscated and tamper resistant code takes place today in the gaming industry: games, even protected, can only resist piracy for a matter of weeks, if not days. It is a protection lifetime the gaming industry can put up with but which a pay-TV service, built for years or decades of operations, cannot rely on for premium content.

KEY LENGTH

This is another topic with a huge amount of misunderstanding, as cryptographic key length has almost nothing to do with security.

The barrier in the picture above is intended to keep cars from traversing the connecting road. The barrier has a short length and little height. As you can see this security is ineffective. This is equivalent to a short key length. It can easy be broken. It can also be ignored.

Here’s the barrier with “improved” security. In this case it is unlikely but not impossible that the barrier can be broken through, but it would still be much easier to ignore the barrier and drive around it. This is equivalent to a barely adequate key length.

Here we have something analogous to an acceptable key length. It would be difficult without explosives to get through this barrier.

Of course we can increase the width and the thickness of the barrier. Just as focusing on key length is often meaningless to security, a gigantic barrier would have little effect on improved security.

UBIQUITOUS INTERACTIVE BANDWIDTH…AND WHAT ABOUT SMARTCARDS?

Many of the established broadcast service definitions have been developed with the constraint that two-way communication can not be taken for granted. With the advent of IP broadband this has radically changed in the sense that one increasingly relies on broadband IP to enrich broadcast delivery networks with interactivity or even to carry media delivery for an increasing portion of the content. This clearly opens new avenues for content protection which can now be smartcard-less in some

cases (an always-on connection does indeed allow for a ‘virtual smartcard’ that can be hosted in the content protection head-end).

The choice for a smartcard or smartcard-less solution is, however, a decision to be taken with care, clearly guided by the exact network and service characteristics of the service to be launched.

The decision criteria can be roughly summarized as followed:

- The target business models envisioned. Commercial models that rely on off-line transactions like anonymous pre-pay, pre-paid events like concerts or soccer games, time-based tokens, push-VOD, off-line viewing,… are only practically feasible with a smartcard approach where the off-line transaction can be fulfilled by interactions with the smartcard only.

- The operational implications of security countermeasures

It is important to note that in order to attain broadcast-grade security also the smartcard-less solution relies on secure hardware support at the client side. Likewise, the security counter-measures for both models rely on remote software upgrades, which can take place as long as the underlying security capabilities of the client hardware (smartcard or set-topbox) are not exhausted. At one point, however, the security hardware does reach the end of its operational life cycle.

In the smartcard scenario, this would trigger the operations to replace the card. In the smartcard-less model, lacking a token decoupled from the set-topbox, this inevitably involves replacing the set-top-box.

This could be avoided by in any case providing a smartcard-reader anticipating on an introduction of a smartcard later on in the process.

In this sense there is also a CAPEX-OPEX trade-off involved with the counter-measures. A smartcardless solution may indeed have a lower CAPEX at the start but the OPEX of every software counter-measure is linear with the combination of vendors, variants and software versions in the field.

- Network & head-end scaling rules induced by realtime interaction with the content protection headend. Having the smartcard logic in the head-end entails increased traffic and processing that needs to be dimensioned for at service peak times.

- The dynamics of the local content market and the level of acceptance of smartcard-less solutions by the leading providers of premium content bouquets.

THE HOME NETWORK REALITY…CLIENT MEDIA DEVICES ALL OVER THE PLACE

The end user’s appetite for ‘consistency of experience’ does not just apply to the different delivery networks, but at least as much to the different media devices and the types of content they carry.

An end user’s media infrastructure will inevitably be a mix of service-centric devices like set-top-boxes but also comprising consumer electronics devices like digital video recorders, portable media players and smart phones. These consumer electronics devices represent a horizontal market with ample room for differentiation by the manufacturers as opposed to set-top-boxes which are service-specified and hence present a much easier environment to manage.

To even complicate matters, content viewed across all those devices will have to be a mix of on-line media from service providers and off-line media locally stored by the end-user irrespective of the original source. There is indeed market evidence that service churn is extremely sensitive to the availability of multiple devices and their interconnection (cf. Broadcasting and Cable: churn reducing by over 50% by offering multiple receivers and another 50% by adding conveniently integrated DVR capability).

Now, the stake holders in the area of content distribution are as diverse as their interests:

- End-users, not a priori averse to content protection, provided it all remains convenient and procured content and rights can flow freely in the home

- Service providers, not necessarily expecting a direct ARPU increase associated to in-home content distribution but nonetheless very aware of the churn reduction induced by ‘digital convenience’

- Content owners, requiring the content to be adequately protected throughout the entire delivery chain

In terms of content protection this presents a significant industry challenge if not a dilemma: to ensure content rights are enforced while supporting the convenience of rights flowing within an increasingly complex home. Respecting the horizontal approach which is vital to the consumer electronics industry, it looks like one will have to be extremely pragmatic here.

One way to solve this conundrum revolves around a separation of the notions ‘home delivery of rights + usage rules’ and ‘management of those rights across residential media devices’.

In this way, one would match the business constraints of the service provider to the concerns of the content owner while not compromising the usability.

However, this observation inevitably requires us to get more precise as to what is being protected against which threats and, even more importantly, for the benefit of whom in the delivery chain.

THE RIGHT TOOL FOR THE JOB.

FROM CONDITIONAL ACCESS TO CONTENT PROTECTION TO…SERVICE PROTECTION

It has become common in the digital media industry to refer to all technologies related to conditional access, digital rights management and the likes with the single umbrella term ‘content protection’.

In a way we may well have created a misnomer here as an industry and there is a clear benefit here to be more precise in terms of what mechanisms are doing what for whom in the value chain. Along the delivery chain from the creation of content to the actual consumption the following elements need to be addressed:

- Securing the distribution chain – content aggregators, theatres, …

This is a significant operational issue given that the majority of high-quality content piracy is in fact an insiders’ play happening at this stage, in many cases even leading to availability of pirated content right after or alongside the theatrical release. This is clearly the area where digital forensics technologies play their role with techniques like watermarking and the likes. It is important to note, though, that not unlike traditional criminal investigation, all forensics are after-the-fact tools allowing to trace back the place where the piracy occurred. At best it will have a dissuasion effect in the longer run, but it does not fundamentally alleviate the operational issue of securing content delivery to the distribution chain which is very much a people issue.

Some would even advocate to apply similar techniques all the way to the user’s set-top-box but this really begs the question whether (i) this is a relevant enough use case of content piracy by end users noting that DVD’s present a much more convenient target and (ii) whether legal recourse based on settop-box identification is operationally feasible at all.

- Securing the delivery of media and rights to the home – “Service Protection”

From the service provider viewpoint, this is the stage at which there is most at stake: ensuring that the end users interested in the content actually pay for the service. A service provider’s revenue is entirely driven by the security of the transactions at this level (subscription to bouquets, purchase of movies,…) and this is clearly where the operator’s prime focus should be.

Key observation in this respect is also that the value to be protected still mostly resides in linear TV and derivatives thereof (85% as per a Nagravision conducted survey with 14 major digital TV operators) and that the techniques applied should be scaleable in a broadcast context.

- Managing rights and usage across the end user’s media devices – Digital Rights Management

While mainly an interest of the content owner, the operator and his security partner can be of great help in addressing this challenge, by adequately bridging the service protection of the operator to the DRM system of choice in the home environment.

An approach like this has been worked out between Nagravision and Microsoft in the form of a CA-to-DRM bridge, allowing content, rights and usage rules to be exported from the pay-TV platform to a Media Center PC and its connected devices like Xbox 360™.

It is rather unrealistic to assume that a single comprehensive end-to-end solution can address all these dimensions with an appropriate level of depth and resulting security.

Instead it likely makes a lot more sense to allow content and service protection mechanisms to complement each other throughout the life cycle of digital media.

For a service provider the guiding factor to select a content security partner should therefore be centered around how well ‘service protection’ is not only implemented but managed throughout the service life cycle in a way that is also realistic about the consumer electronics market which will be a driver for the innovation of our living room.

For the foreseeable future, content security will continue to be rather a verb than a noun.

HOME

This tracker has been compiled from external sources and does not necessarily reflect the views of the company.
Direct links only work for a specified date. If you would like to review an article after the printed date, please go to the news source's website directly and access their archives.