DELIVERY CHANNELS

DELIVERY CHANNELS

If job alert on mobiles turns out to be a roaring success, there is a danger that it might "immobilize" us into inaction!

This is the problem with "success"!

Success brings comfort & complacency. It brings inaction and robs us of curiosity to experiment with new things, new ways of doing things. Let sleeping dogs lie! If things are going so great, why stir-up hornet's nest? Don't rock the boat!

This feeling/attitude is dangerous. Decline starts from here.

This is why, even as we are preparing to launch JAM on the networks of mobile service providers, we should start thinking about our next delivery-channel to deliver job-alerts.

This is where the enclosed article becomes interesting.

By end of this year, 3 parties are planning to launch DTH services, viz:

1. Zee TV (DishTV)
2. Tata-News Corp (Murdoch's StarTV)
3. Prasar Baharati

All of them are targeting:

1. 85 million TV sets
2. 43 million Cable homes
3. Rural areas

They will pose threat to

1. MSO (e.g. Hindujas/Raheja etc.)
2. 60,000 cable operators

Why?

1. DTH eliminates cable operators in distribution chain. Today, main value-addition by cable operators is "aggregation" of several channels on one wire. DTH will deliver several "channels" to a home directly, from a satellite, thru an 18" dish antenna & a set-top box. No intermediary necessary.
2. In DTH, there would be no "under-reporting" of subscribers as prevalent in cable system.

Similarity between CAS & DTH:

Both will charge some flat fee/channel/month. They may have a flat fee for a "bouquet" of channels – and also some free channels. Both will require set-top-boxes, but CAS needs no antenna.

Where does OUR opportunity lie?

• In order to compete with cable operators (with or without CAS), DTH would need to offer some "compelling content which one can only get on DTH & not on cable".
• In West, such a content has been "ADULT" channels - which, of course, will not be allowed in India.
• In a job-starved country like India, where the number of jobseekers (both employed & unemployed) runs into millions, "job-advts" could be such a compelling content!
• I would not be surprised if in India, a 24 hour "Jobs-channel" may not become the most popular channel - with millions of unemployed "glued" to the TV screen for hours altogether, in the hope of finding/coming across those few job-advts which are most relevant/appropriate for them to apply.
• I suppose this (observation) would be equally true of all "developing/poor countries where jobseekers far far exceed the no. of jobs available.

And

Whether under CAS or under DTH, a channel would cost the same per month ($\text{Rs. 10}/\text{20}/\text{30}$), whether you view it for 1 hour/month or for 100/hours/month! The rental is tied to "month".

So, for the subscriber, the only variable cost is that of electricity consumed for running the TV! $\text{Rs. 10}/\text{20}/\text{30}$ is a "fixed" cost.

And, in JAM, since we are already "aggregating" job-advts from a no. of jobsites, we already have this compelling content which we could offer to Zee/Tata/Prasar Bharti.

They could start with a 30 minute "JOBS FOR YOU" program - Compute Viewership, and if proved popular, go on extending it gradually - to ultimately become a 12 hour job-channel.

But this idea/concept would "sell" only when we can show to them that JAM has become extremely popular on Mobiles!

If Zee/Tata/Prasar Bharti, can see

that millions have registered for JAM, then, that is a proof that "JOB-RELATED CONTENT SELLS"

Hence, the right time to approach them with our proposal would be early 2005.

By that time

• They would have launched DTH
• We would have known the results of JAM

Of course, DTH job-channel, as compared to JAM, would suffer from following limitations:

• There is no "Mass-Customization", since jobs cannot be delivered as per each DTH Subscriber's "Job-Preferences".

This (customization) could come only when Reliance introduces its Interactive TV, on its broadband, where each TV has its own unique IP address.

Till then, a DTH job-channel is simply a "broadcasting" of same job-advts. to all subscribers/viewers.

We can try to partially overcome this

limitation by allotting different "days" - and within each day, a different "time" to job-advts, belonging to

• ABC Industry
• XYZ Function
• HJK Designation-Levels
• LMN Cities
• etc. etc.

(Obviously, the largest share of day/time going to "Entry Level/Junior Level" jobs meant for fresh graduates). There could be even specific time-slots for

• Housewives (after children go to school?)
• Temporary Workers
• Consultants/Retainers
• Part-time jobs (School children?)
• Factory jobs (Craftsmen/Tradesmen)
• Office jobs.
• Outdoor travelling jobs.
• Jobs for retired persons
• Jobs for persons who have taken VRS.
• etc. etc.

This way, each viewer group knows when to switch-on their DTH job-channel.

• The Second important "limitation" of a DTH job-channel is "Lack of Interactivity".

When on TV screen, you see an interesting job, you cannot simply click on your remote to "APPLY ONLINE" (a tremendous advantage of JAM).

Such an "interactivity" is possible, only when "Interactive TV" system arrives. Once again Reliance? or maybe netTV of ATLAS INTERACTIVE & BSNL joint venture, scheduled for launch in Gurgaon/Delhi area by Dec. 2004.

Till such time, a DTH job-channel viewer has following choices:

1. Note down "Contact Details" of job-advertiser from TV Screen, then apply directly.

This will mean, each job-advt. has to remain stationary on TV screen for 2/3 minutes! This long Pause would irritate those viewers, who are NOT

interested in that particular job. Such long-duration STATIC screen-shots would also dramatically reduce the no. of job-advts that can be displayed/broadcast in an hour.

(Maybe, someday, TV will allow viewer to take a "print-out" of the screen! Then, we can speed-up display)

2. Note down
• Job Advt. Source (Jobsite Name)
• Job Advt. Number (Of that Jobsite)

then, at leisure, log onto the concerned jobsite, search that particular job-advt (assuming jobsite has a facility to search by job-advt. no.), and then click "APPLY ONLINE" (assuming he has earlier, deposited his resume on that jobsite - and of course we are downloading & aggregating the jobs).

Of course, this method, would be a slight improvement over (1) & will help us speed up the broadcasting.

But this assumes that jobseeker has access to a PC/Internet Connection.

3. Under this method, the jobseeker would need to submit/post his resume in advance on WWJ.com & obtain his
• PEN
• User ID
• Password

Now when he is watching DTH job-channel, he merely notes down, all interesting JOB ADVT. NUMBERS (SERIAL NO allotted by WWJ & not the job-ID No. given by a jobsite).

Now, at leisure, he rings up (phones) predecided phone no. of WWJ on his mobile.

The WWJ's IVRS system asks him to enter his "Password/User ID" & click SEND.

When IVRS recognises/associates this "Password/User ID" with PEN of the candidate, it prompts him to now, enter/type "JOB ADVT. SERIAL NO" & click SEND.

Then IVRS asks him to repeat the process with the NEXT command.

From this point onwards, process is similar to JAM.

WWJ will pick-up and email that candidate's resume, to all those job-advertisers along with covering letter-cum-feedback form.

Questions:

How do WWJ get "paid" by the DTH job-channel watcher, for this "Resume Forwarding Service"?

Ans:

By depositing some "advance" amount on WWJ (thru cheque/DD/Credit-card etc.)? India & Indians are still not ready for this.

But let us not worry about this aspect at the "CONCEPT-STAGE". By the time we reach the "Architecture stage, we will figure-out a solution.

Eyeing eyeballs

With little hope of CAS being implemented, Zee, Star and now Prasar Bharti are venturing into DTH broadcasting services. Can the gamble pay-off?

This section is an article snippet from "SMART FEATURE / SPECIAL REPORT" of Business Standard, dated 21 JUNE 2004.

[The article discusses the entry of Zee, Star (Tata-News Corp), and Prasar Bharti into Direct-to-Home (DTH) television services, their target audience, and the threat they pose to Cable System Operators (MSOs and local cable operators) because DTH eliminates the need for intermediaries and prevents "under-reporting" of subscribers. It also mentions that DTH and Conditional Access System (CAS) are similar in that both charge a fee/month, may offer free channels, and require set-top boxes, though CAS needs no antenna.]

POSITIVES

• DTH removes under-reporting of subscribers, which is prevalent in the cable system.
• Viewers can access niche channels they may want.
• Without asking the cable operator to provide a service, DTH would make it accessible in remote areas.
• Viewers might receive lengthy screen time.

NEGATIVES

• An early user will opt for DTH only if he receives many more new channels that cable is not offering.
• Monthly subscription rates may be $20\%$ more than that of cable TV.
• The two main DTH partners – Star/Zee – have not decided to share the hardware, or if so, long distance rates are expected to stay high, hampering the growth of cable to home in India.
• The world over DTH thrives on adult, entertainment, movies and sports.

What's on the platter?

DTH basically refers to the transmission of TV signals to a home directly from a satellite through a small receiving antenna located at the viewers' house. The transmission is direct, there is no intermediate necessary.

What's the allure?

The main disadvantages are inherent in the cable system. DTH eliminates cable operators in the distribution chain. The main value addition by cable operators is "aggregation" of channels on one wire. In DTH, several channels will be delivered directly from a satellite via an 18" dish antenna and set-top box.

What lies ahead

Analysts see the crucial ingredient for success being compelling content. Content is the biggest demand in the country. Content is the second most important issue. There is a large market that is currently "starved" of content.

Zee/Tata/Prasar Bharti - A Job-Channel will help -

Jobs -

Playing hard to get in rural India

Will it ring a bell?

This section is an article snippet from "THE SMARTINVESTOR" of Business Standard, dated 21 JUNE 2004.

[The article discusses the telecom sector, focusing on state-owned telecom firm Mahanagar Telephone Nigam (MTNL). It details MTNL's recent performance, including net profit increasing by 31 percent year-on-year for the March 2004 quarter. The increase in profits is attributed to higher revenues from fixed-line operations and gains from the Interconnect Usage Charges (IUC) regime. However, MTNL is facing threats from private competitors and challenges in retaining customers.]

Going by sheer numbers, MTNL does not seem to be a black sheep in the telecom sector.

Concerns persist

The biggest concern for the company is its inability to retain customers. The addition of fixed-line customers has come down rapidly, but mobile additions have grown steadily. MTNL's customer base consists of $97\%$ private players and $3\%$ government accounts. The company is expected to improve the situation by July 2004.

Telecom players vie for market pie even as MTNL's revenues have stabilised; but margins fell a bit in Q4.

Market share ($\%$) of telcos in May 2004

• Market share ($\%$) of telcos in May 2003*
• Chart showing: 6.28 MTNL, 7.67 BSNL, 8.15 IDEA Cellular, 6.49 Hutchison, 16.95 BPL Mobile, 37.95 Bharti, 31.27

Chart showing Operating Profit and Net Profit (Rs in crore) across Q1 04 to Q4 04.

'SMS Interactivity Is The Way Forward For Channels'

This section is an article snippet from "TECH 'N BIZ / Interactive TV" of The Financial Express, dated Wednesday, June 23, 2004.

[The article discusses the growing importance of SMS interactivity for TV channels, noting that in Europe, $42\%$ of mobile phone users are also TV viewers. It highlights that SMS messaging accounts for $\text{22 million}$ euros in the European TV broadcast market, and that the number of Europeans using mobile phones to interact with TV is growing.]

Lessons From Europe

• $\text{42 per cent}$ mobile-phone users in a number of Europe's TV broadcast markets were TV viewers.
• SMS-TV messaging accounts for $\text{22 million}$ euros in the European TV broadcast market.
• In some cases, the addition of SMS boosted the viewership of pay-per-day for television shows by up to $\text{40 per cent}$.
• Currently, $\text{5 per cent}$ of the interaction between mobile phones and TV retail selling during music programmes.
• SMS-TV shopping has also captured the viewer's attention.
• In Germany, CHT and concert tickets can be bought with SMS.
• A major portion of the increase in revenues from SMS is directly linked to TV screens.
• If more than $\text{5 per cent}$ of a channel's viewers interact with it, its audience is likely to tune in again.
• In 2003, $\text{800 million}$ messages were sent in the European SMS-TV market generated for $\text{400 broadcasters}$.
• Studies of more than $\text{20 SMS-TV shows}$ in Western Europe suggest that $\text{10 per cent}$ of the total audience is converted from viewer to active SMS participants.

SMS interactivity can encourage ratings growth in the short term, add a value for viewers, and generate revenues.

Q. DTH

A. Unlike a broadcaster through cable, DTH enables a measurement of viewers.

Abhi

DON'T LET THEM CATCH-UP!

By launching WWJ, we may have temporarily "pre-empted" the competitors (Monster/Naukri/TimesJobs/JobStreet etc.).

But they are bound to react/respond to our "threat" - possibly by coming up with something similar to JAM. It is difficult to be Original but never too difficult to "copy"!

And these jobsites have "deep pockets"! Most have received huge VC Funding. Most are moderately profitable too. So, resources cannot be their problem.

And if their "Ego" comes in their way, one of them could easily launch a new site (a new name) and start downloading/aggregating jobs from the rest!

Whether someone goes this far or not, we cannot afford to take them lightly. Like a good chess-player, we must anticipate the next move (and the next too!) of the opponent and be ready with our counter-strategy.

What can we do?

By keeping up our aggressive Offensive,

we must keep them perpetually on "defensive"!

This is quite like a boxing-match! In rapid succession, you have to shower your opponent with punches, so that he remains "dazed" and unable to "recover"!

We shall do this, by adding, in rapid succession, a series of features/statistics, for the benefit of the members who register on WWJ.

When a member looks at the list of the (planned) features and then actually gets to use these over the next few months, then he becomes "loyal" to WWJ. He would be reluctant to switch-over to a copy-cat competitor, who can offer only the basic service but not all of our "add-ons".

Again, once all (or most) mobile-service providers tie-up with us for JAM content, they would be reluctant to tie-up with a second content-provider, even though our agreements will be "non-exclusive".

Mobile Service Providers (MSPs) know that, offering identical content/service (to their subscribers) from TWO different content-providers would terribly CONFUSE their subscribers! This is a risk, they would not like to take.

So, for us, the trick lies in signing-up all (or major) MSPs within next 4 months before Monster/Naukri etc. could come up with an "appropriate" response.

Once this happens, no matter how good or appropriate their response, the MSPs, would not look at them. How could a MSP one day tell his subscribers to go to WWJ and register and then $\text{2}/\text{3 months}$ down the line go back and tell them to now "re-register" on XYZ jobsite? Such a confusing signal would be a disaster!

Therefore, after initially launching JAM on BPL Network, we must ensure that it becomes so popular amongst BPL subscribers that a large no. of them register.

If we can manage $\text{1 lakh}$ BPL subscribers to register on WWJ within ONE MONTH, that would clinch the deal!

The signal would be loud & clear, not only to BPL management but also to all other MSPs, who are, as yet, undecided/sitting on the fence and weighting their "options".

Thru such a "RUSH" of initial subscriptions, we have to create in

the minds of other MSPs, a fear-psychosis viz:

Am I getting left-out of JAM Boom?

Adding/offering a series of "Features/statistics" quickly is just one of the many things that we can do to attract a large no. of jobseekers to register on WWJ in a short period of time.

And then, to create a virtuous cycle/a "self-fulfilling prophecy," we will daily publish/broadcast the "daily & cumulative no. of registration" figures to

• 25 lakh jobseekers whose email ID we have ($\text{21 lakh}$ you got $+\text{4 lakh}$ our own)
• all MSPs.

The purpose of this long note is to ask you to:

• examine/study these features & the timeframe by which we can introduce the same
• figure out what S/W developer resources do we need to (even) advance this time-frame depending upon our own inhouse resources
• **(Deepal/Srivastava/yourself), decide which feature-development you would like to "sub-contract" to Rajiv/anyone else & DO IT fast.

19/06/04