An article on SMS : India's Revenue Earning Strategy thru Shows:
Fastest fingers first
More and more TV channels are offering incentives to viewers who SMS
SOMASHUKLA SINHA WALUNJKAR
Tired of being a spectator as you channel surf? Well, for those of you who want to be more active participants in your favourite TV shows, SMSing can bring rich rewards (literally): from all-expenses-paid trip to Singapore, a chance to take Priyanka Chopra on a dinner date, selecting your favourite singer in a talent show or winning yourself a ticket to KBC2.
It costs Rs 6 for a subscriber to send one SMS, Rs 5 is the earning for service provider and Re 1 payable as government tax. And the revenue for a mobile service provider runs into crores.
Sample this: KBC2 has had close to 6 crore SMSes sent since June 2005. Indian Idol on Sony reportedly got close to 5,90,206 SMSes in just three-and-half hours since its opening on November 25, 2004 and netted close to 4 crore SMSes in four months. Sony's Fame Gurukul got 40 lakh SMSes in two weeks! For Zee's Sa Re Ga Ma Challenge 2005, as many as 100,000 SMSes come in daily, while for the Zee Cinema Munnabhai MBBS contest, about 300,000 SMSes came in.
Internationally interactive television means a lot of revenue for television channels. In India the concept is relatively new and yet to catch up. While mobile service providers do make a killing and get enough revenue, channels only manage to create brand loyalty, the actual revenue earned from is little. Industry estimates say that channels get between 30-35% of the revenue from each SMS received. An SMS earns the channel anything between 75p-Re 1, say industry observers, which when multiplied with the total number of SMSes received amounts to a lot of money. Internally, almost 80% of the revenue is given to content providers, in India content providers get about 20% of the revenue.
So what does SMSing do for TV channels? "They make it easier for a channel to tabulate the entry and allows it to respond faster to the consumer. So far SMS is in three categories: 1. votes and polls segment (you can vote for your favourite artist, etc); 2. contest and participate: you want to take part in a show like KBC2, SMS your answer and win a seat; 3. sending out content: downloading ringtones, pictures and even video clips of a show. We want our customer base to be loyal. Our Holi Special episode contest got us 12 lakh SMSes in just one night, while Star Parivar Awards got us 2 million responses in four days," says Viren Popli, senior vice-president (Interactive Services), Star TV, India.
Agrees Ishwar Jha, vice-president (Business & Technology), Zee TV: "In India SMSing is mostly a marketing tool which creates long-term loyalty for a show, viewers feel connected to a show they SMS to. India's Best Cinestars Ki Khoj was one of the first TV shows in India to use the convergent voting platform (SMS, telephone and Internet) and we got about 15 million SMSes. We are going to launch a show which will depend a lot on SMSing and viewers who send in maximum SMSes will get attractive prizes."
MTV was one of the early starters and encouraged viewers to SMS as early as 2001. For MTV VJ Hunt, viewers were asked to pick out favourites from the 11 finalists! And that's not all, viewers are also asked to send in their love-notes for Love letters a show which airs on MTV. Says Vikram Raizada, vice-president (Marketing & Digital), MTV: "Interactivity is wired in our DNA. MTV In Box, our first SMS-based request show, was aired in 2001. We have a lot of half-hour interactive straps. For us SMSing is about building relationship with viewers and weaving it into our lifestyle. Revenues are not the focus now, but we'd be looking at that possibility in future."
SMSing is emerging as a popular marketing devise even down south. The Sun Network gets close to 50,000-150,0000 SMSes every day which are scrolled on the screens. Sun Music (Tamil), Kiran (Malayalam) and Adithya (Telugu) use a lot of SMS.
For service providers like Idea, Hutch and Airtel, SMSing means revenues. "We also offer customers an advantage: we have created a special facility to enable us to cope with the huge traffic that SMSing for shows like KBC2 or Indian Idol," says Mohit Bhatnagar, senior vice-president (New Products & Alliance), Airtel.
So what are you waiting for? If you want to fly to Singapore or see your message on screen, hit the mobile buttons fast.