Mumbai: In July 2022, Arghya Chakravarty joined the leadership team of Shemaroo as the Chief Operations Officer. He has over three decades of rich and varied expertise in the media and entertainment sector. He oversees the company's operations and overall business strategy for the brand's expansion and success in his capacity as COO. He works closely with the leadership team to put the brand's strategic ambitions and values into action to create a strong and successful brand.
Arghya's understanding of the industry and consumer needs, as well as his ability to seamlessly transition the business to meet changing patterns, has been critical to the brand's success. Shemaroo is developing a thriving B2C entertainment portfolio under his leadership.
Chakravarty in conversation with Indiantelevision.com sheds light on his role, new appointments, digital business, FreeDish market and growth plan.
Excerpts
On New Appointments
The appointments are part of a larger plan that we began a few months after I joined. While it was always Hiren and Kranti's strategic thinking when they were leading it, we began to shape the new leadership team and structure after my joining. We made a significant structural change by reorganizing the leadership team. The actual appointments are now taking place as per the structural change that we initiated. My role started with the conception of the structure, moving on to assessing fitment, and ultimately participating in the entire recruitment and hiring process.
On Progress in 2022
I joined Shemaroo in mid-July, so I've assessed about five to six months of the year. Currently, we are in the establishing and building phase of the organisation. We have observed robust revenue and top-line growth in all three quarters. Nevertheless, I think that this growth ought to be seen in the context that we are building our business and some verticals have small baselines.
The organization is brimming with optimism and enthusiasm for 2023, given the current launchpad we have. While all sectors, such as digital video, broadcast, OTT and syndication, have witnessed substantial growth, our primary focus is to solidify our position as a launchpad for 2023.
We are happy with the progress that we have made in terms of actual growth and diligent efforts in building the organisation. The tangible results of the structural modifications and departmental reorganization will commence in April, which marks the beginning of FY 23.
On FTA
The Free Dish market is experiencing growth and is expected to expand further in the future. We are optimistic about the overall Free Dish market.
Considering the vast expanse of the country, its massive population and the significant number of people living in smaller towns, rural areas and villages, a Free Dish platform is ideal. Therefore, we expect continued growth in the Free Dish space.
Our presence in the Free Dish market is strong. Given the extensive reach of Free Dish, there is a vast pool of advertisers targeting this market. Hence, I remain optimistic about its potential and believe we are well-positioned for even stronger growth in the upcoming year.
On Shemaroo’s Channels and its viewership
We have two GEC channels, and we are committed to investing in them. We currently have about five new original shows across both channels, and we aim to add more in the future. Additionally, we will continue to invest in Free Dish shows, people marketing and processes because we remain optimistic about its potential and see significant growth opportunities ahead. Free Dish contributes to 80-85% of our viewership, and we plan to continue utilizing these three channels in our network as long as they remain relevant.
However, we will evaluate the need to add more channels to our network. The number of channels that will be available on Free Dish and the number of paid channels will depend on the genres and languages we want to explore. This evaluation is likely to continue in the future.
On Presence and Penetration
We have two channels in the Hindi GEC space - Shemaroo TV and Shemaroo Umang. Our presence in the Free Dish markets of MP, Chattisgarh and Rajasthan is very strong. Currently, we account for 10- 11% of the total GEC viewership, including pay channels, which is quite significant. Our penetration is both deep and broad, and we are experiencing steady growth month by month. This trend is expected to continue in the future. However, given the size of the market, there is still plenty of room for expansion.
Shemaroo MarathiBana, despite being a free channel, has a strong presence in Maharashtra with high distribution, its reach is similar to other top channels. We reach around 70-80% of the audience. Although Shemaroo MarathiBana is currently limited to a specific area due to the lack of original shows, we expect time spent on Marathi programming to drive growth (TSP). In the coming months, we will debut several new original shows on MarathiBana, and we anticipate significant growth as a result.
As for our Hindi channels, we already have five original shows, and we plan to bring in a few more shows in the first quarter of FY 23. By the end of this fiscal year, we aim to have about two or three shows on those two channels. However, our approach for Marathi is unique and innovative, and you will have to wait a couple of weeks to see how we execute it. A new Marathi original show is expected to debut in a month or so.
In the upcoming weeks, we will unveil the various attempts and innovations we are making to provide fresh content for our Marathi audience. While it won't be entirely new original programming, it will be fresh content. Currently, we have around 2.5-3 hours of original content among the five shows we air. The rest of the content is repeated, but we plan to increase the original content to 4.5-5 hours by the first quarter or possibly the first half of the next fiscal year. We currently have no original shows in Marathi, but we anticipate a significant shift in this regard starting in the first half of FY23 and continuing through the end of 2023-24. Moving forward, we plan to have at least four to five original Marathi shows.
On Competition
It is undeniable that the broadcast industry is highly competitive. However, India's vast size provides a substantial audience base and high viewership. While TV penetration is significant, there is still a long way to go in the HSM markets. Notably, television penetration is significantly higher in households in the southern part of India compared to the northern part of the country.
There is untapped potential for growth in the northern states of Bihar & UP where television penetration is not as high as in the southern states. In terms of content, there are two categories: acquired and original content. While we have gained some leverage through acquired content over the past two years, we are not solely reliant on it. We are actively creating assets by developing our shows and currently reworking three or four more shows that will be released in the first quarter of next year.
Generating content is not a difficult task. However, developing a proper strategy to create a distinct space in the minds of consumers for producing unique shows is crucial. Our challenge is to acquire fresh and unique content that sets us apart and appeals to our target audience. As we operate in the free dish space, we are less affected by OTT issues. We are currently not worried about OTT consumption in our markets.
We strive to create maximum differentiation and continuously collaborate with our consumers to comprehend their needs and how we can effectively offer them entertainment in a unique way. This is a continuous effort that we are committed to.
On YouTube
Our association with YouTube goes back to 2011, making us one of the strongest, largest, and most reliable publishers on the platform. We have multiple channels, and our viewing figures are satisfactory. We continually update and introduce new content to keep our audience engaged. Therefore, one of the crucial elements of our growth strategy moving forward will be investing in acquiring valuable content for YouTube.
On AVoD and SVoD
Our broadcasting business relies solely on Free Dish, with no revenue from distribution. Thus, our revenue model is entirely dependent on advertising. Over the past six months, our advertising revenue has witnessed robust growth, and we expect to continue seeing growth month after month. Additionally, with the arrival of more new original shows, we anticipate being able to monetize them even better.
When we increase the number of original shows on both channels from five to seven, eight, or nine, our ability to monetize will increase even further. Our broadcast advertising business has made significant progress.
Our advertising client base has seen substantial growth in the past three to four months, and we expect to see even more activity in this area. We are also placing a strong emphasis on brand solutions, which will enable us to sell branded content. This can only be achieved through new original shows, and we are currently in a good position with a reasonable number of such shows.
Most of the advertisers who advertise in the Hindi GEC market on Free Dish have a long-term relationship with us. While some advertisers may stay for a few months, others have stayed with us for years. However, as we expand our show line up, we believe that we can generate more business from them. Additionally, this expansion will help us generate more revenue from branded content, which will complement our advertising revenue.
We are currently operating in the SVoD space, and we will likely continue to do so for the foreseeable future.
In the OTT business, we have established ourselves as the leading player in the Gujarati language, and we have a strong presence there. Our commitment to our viewers is to offer one new show every week, be it a movie, a play, or any original content. We will continue to prioritize this and have seen strong growth in our subscriptions.
We are currently executing our plans as intended, and we will evaluate our impressions to determine if we have gathered enough to shift to a hybrid or AVoD model by the middle of next year. However, at present, we have a significant stake in the SVoD sector, and I don't anticipate that changing for the next two and a half years.
On Experience
Several individuals on our team come from large networks, but we also have many new members joining us. If you examine the backgrounds of those joining us, you will notice that most are from established corporations. We are fortunate to have Hiren and Kranti leading our organization. Kranti, for example, brings a wealth of experience from her time at Pepsi. I believe that my diverse experiences, not just from large networks but also from my past, allow me to have a more comprehensive perspective on the business.
Working in a company like Shemaroo offers unique advantages that are different from those found in large networks. The breadth and depth of one's role provides operational flexibility and ample opportunities for creativity and decision-making. My past experiences have equipped me with the ability to make informed and calculated decisions while working with larger organizations. Additionally, my interactions with professionals at Shemaroo only add to the network of people I have formed over time.
I can say that I have simply added a bit of my expertise to what was already a professional organization. There hasn't been any drastic change. However, the focus now is on having more professionals in leadership positions and creating the appropriate image for the company.
On the Learning’s
In the nine months that I have been here, with five months in 2022, I have learned that companies like Shemaroo with a long-standing history and legacy strengths have tremendous potential in the current media environment. Shemaroo, with its 60 years in the business, has a wealth of legacy strengths that can be harnessed and leveraged to great effect.
I have always believed in the strength of our legacy, and my time here has only reinforced that belief. There is a massive opportunity for us to leverage our strong legacy, which has been built over 60 years and use it to our advantage even in today's media landscape.
As a business leader, my second significant lesson is that one should have patience when implementing changes aggressively. It may take a little longer to see the impact, but it's essential to continue doing the right things, such as hiring the right people, providing them with the necessary resources, and empowering them. This mindset has been crucial for me, and I believe it's essential to keep putting in the right inputs and have trust that results will follow.
The idea that drives this entire industry forward is the relationship between the content and the consumer. Ultimately, it's about providing quality content to consumers in the way they prefer to consume it. This is the key to a successful business model.
The challenge lies in understanding the consumer and the content they prefer. TV, broadcast, and over-the-top (OTT) are simply channels to reach the consumer. Therefore, it's important to have a deep understanding of both the consumer and the content. If you can successfully marry the right consumer understanding with the right content understanding, then all of these channels become pipes to the consumer, and there is no challenge within broadcast, OTT, or any other channel.
On 2023 plans
We are committed to strengthening our presence in the broadcasting space and becoming a powerful player in the digital video ecosystem across various platforms, such as YouTube, Facebook, and other apps. Our focus will be on agility and brand development, and we will be working hard to build a stronger brand image for Shemaroo.
By the end of 2023, we plan to give Shemaroo a completely new look that will leverage its legacy strengths and make it more consumer-centric. We will be much more fleet-footed and agile. Our businesses will become more consumer-centric than ever before, and we will be more proactive in catering to the needs of our customers. We are determined to achieve these goals and create a brighter future for Shemaroo.
