SPNI’s aim is to become an animation powerhouse. So far, the focus has been on being a homegrown kids’ channel through Sony YAY! Going forward, the aim is to develop an ecosystem around animation where local shows being aired on-air and online are one part of the equation. The objective is to establish multiple revenue streams, including YAY Animations producing shows for other platforms in addition to Sony YAY!, exploiting opportunities in licensing and merchandising through more partnerships, and entering new categories such as spectacles. The goal is that in three years’ time, these streams will have been solidly established.
Speaking to Medianews4u.com, Ambesh Tiwari, Business Head – SPNI Kids and Animations, said, “I think on the kids’ front, we’ve been on a pretty good trajectory; we’ve been on a pretty solid growth trajectory, so I think it was more about continuing and maintaining the momentum and perhaps accelerating wherever the growth areas are.”
The aim is to position itself as more than just a channel. “The intent now is to create an animation powerhouse where a channel is one part of our play. We now have YAY! Animations, whose first show is ‘CID Squad’. I think the intent is to create these multiple revenue streams because animation is one of those rare businesses where the sum of its parts is greater than a single entity.
“So, you’ll have multiple revenue streams like licensing and merchandising, syndicating content, revenue through advertising, revenue through YouTube, and so on and so forth.” Having said that, he admits that one of the key challenges in this particular sector is the time it takes to create a show, which is multiple times that of a live-action show. “For example, ‘CID Squad’ took us close to two years.” When one begins a project, the macroeconomic conditions and socio-cultural milieu of the country, or any market for that matter, may change radically by the time the show is completed. “So you have to be prepared for that. A lot of forward-looking thinking is needed.”
On the ad revenue side, he concedes that the overall television category is facing difficulty. The good news for SPNI Kids is that, since the revenue streams are multiple, fluctuations in one can be compensated by others. “For example, we’ve seen over 100% growth year-on-year in licensing and merchandising. One thing is for sure: the viewership on television is not declining, at least in our category. It’s not decreasing; it’s the same as it was a couple of years back. It’s still the same today.” He noted that while people are watching different types of content on different platforms, TV is, so far, not really facing much difficulty in the kids’ category in terms of viewership.
Viewership Patterns: In terms of consumption patterns, a lot of growth is coming from the Southern markets. “We are a strong number one in Kerala with our offerings. We are now on and off number one or two in Tamil Nadu.” He also noted that a large portion of viewing comes from the summer and during Diwali. Around 30% of the viewership occurs in the summer, while the festive season accounts for another 20% of Sony YAY!’s annual viewership.
He added that the broadcaster sees a lot of adults watching. “Whether it’s co-viewing or not, BARC doesn’t provide us with that data. But we do see a lot of adults also watching our content.” Therefore, ‘CID Squad’ targets not just kids but families.
Discussing monetisation, he noted, “As a business leader, I’ll always be unhappy with my revenue, and I think I’ll always feel that my property should be paid more. But we’ve been doing very well in terms of viewership. We are seeing the results of that in our revenue across different streams.”
When asked if TV ad revenue is still crucial, he reiterated that the entire strategy is now to evolve as an animation entity. The aim is to generate more revenue from other streams than from just the TV channel within two years. “So TV ad revenue will be part of our revenue stream, but going forward, you’ll see a lot of our revenue coming from the content we create.
“Within the next two years, if things go well, I think we will be making more money from our original productions, which are global, compared to just television revenue.”
A Big Local Anime Show: In terms of upcoming shows from YAY! Animations, he said, “We have ‘CID Squad’ coming this year. We have an anime series launching towards the end of the year.
“Next year, we’ll have three more releases. One is ‘Young Achievers Academy’, another is based on the Stories of Satyajit Ray, and there is an additional unnamed project. Each year, we intend to scale up.”
However, he added that the scaling up cannot be exponential. “As I said, the time and investment required are significantly higher, and therefore, we have to be cautious while expanding. We are doubling down on our original productions.”
When asked about the upcoming anime show later in the year, he said, “We already have a major OTT partner signed up for the show. At the moment, I can’t reveal the OTT partner, but it’s a very big one. It will be one of the biggest shows of the year.
“We’ve built the show with a global audience and appeal in mind. The story originates from an Indian myth, and we have hired artists and studios from Japan to assist with production. It must retain local relevance while staying true to the anime format and offering a globally engaging story.”
Discussing the nuances of anime, he said, “One key difference I have learned at Sony is that anime characters grow and transform physically over the course of the story. They continuously strive to become better. These are some of the salient features of anime storytelling.”
Licensing And Merchandising: Expanding on the licensing and merchandising strategy, he said, “We have some of the top characters with us, including Naruto, Black Clover, and Shin Chan. These are global brands that we are distributing in India. We now have tie-ups with major brands such as Reliance Retail and ITC, as well as emerging brands.”
He mentioned Mokobara and Boat as partners. “We see a lot of interest coming from across the board. You will now find a lot of official merchandise in India.”
He noted that ‘Honey Bunny’ is also being licensed. Regarding new categories in licensing and merchandising, spectacles have emerged as a new area. “Headphones were not present earlier, but now we have sleek new headphones from Boat. Electronics, in general, could be a major category moving forward. We are moving beyond apparel and consumables into other product categories, positioning ourselves as pioneers in this space.”
