Strategy Digest Volume 6

Google aims for premium content

Google is gearing up its premium content aggregation in India. The market available is huge - total view of premium content from India has increased by almost 350 per cent globally, on a year-on-year basis (Q2, 2010 compared to Q2, 2009). Active videos have grown 440 per cent and new video uploads have gone up by 300 per cent.For Google India, activity went up a notch after the success of live streaming (simulcasting) of Indian Premier League (IPL) matches on YouTube. Google recently tested the simulcasting segment with Cinemaa Awards on Maa TV — receiving approximately 170,000 views.

Google has a network of 10,000 partners globally that includes Indian players like ZeeTV, Sony Entertainment Television, Yash Raj Films and Turner, among others and is an ideal position to expand and capture the market. YouTube, a popular platform for running campaigns, trailers and short format videos, is fast becoming popular with its long-form content, celebrity channels, and simulcasting programmes. Targetting regional movies and small-budget cinemas is next in line.

Media houses entering into private treaties

Private treaties is essentially a programme where media houses enter into treaties with companies. Media houses such as BCCL (Bennet, Colemen & Co. Ltd.), Hindustan Times and the Bhaskar Group have all entered into such treaties with companies.These treaties involve divesting stake in the companies to the media houses in return for advertisements or material benefit such as cars and houses.

There is growing concern over such treaties since these could influence the news being published by the media houses. To address these concerns, SEBI recently made it mandatory for all media houses to disclose their stake in the company being reported.

Sun Pharma buys Taro finally, to complement existing resources

After the long legal battle, India-based Sun Pharma finally attained a controlling stake in the Israeli company Taro Pharma. Taro's portfolio of dermatology, topical and OTC drugs will complement Sun Pharma's generic portfolio.

Also, the presence of Taro in the US and Israel will allow it increase its presence in these countries. At the same time, the R&D facilities of Taro in Canada and Israel will be complementary to its current facilities.

Flavoured water: The next big drink?

The promoter of Bisleri and Thums Up is now looking at promoting flavoured water. Ramesh Chauhan, the septuagenarian promoter of Bisleri, believes that flavoured water has a lot of potential which has been untapped.

A sector which has till now been untouched by the big cola majors, Chauhan is of the opinion that many urban consumers will convert to flavoured waters given the increasing health consciousness. Currently, only D S Foods has introduced flavoured water in India but has not a great success.

Flavoured water exists in the international market in the form of Aquafina Flavour Splash and SoBe Life Water (PepsiCo) and Dasani Flavoured Water (Coke). As such, if Chauhan succeeds, the cola majors might move quickly to introduce the international brands in the domestic market.