AgTalk | Imagine TV was not a distress asset when Turner had decided to acquire it: Turner's Siddharth Jain

In a seemingly brusque move Turner Broadcasting System Asia Pacific, Inc. announced its decision to shut down its Hindi GEC along with its international feed "Imagine Dil Se'. The explanation shared was that even though some programmes delivered satisfactory ratings, the overall channel had not performed and grown as per expectations. "Imagine TV" was Turner International's second attempt at running a Hindi GEC. Its first attempt, a joint venture with Alva Brothers Entertainment, which also shut shop in 2010.

Established by the former Star India CEO Sameer Nair, "Imagine TV" was launched on January 21, 2008 as "NDTV Imagine'. In December 2009,Turner Asia Pacific Ventures acquired major percentage of stakes in NDTV Imagine Ltd.

Siddharth Jain, Managing Director- South Asia, Turner International talks to Adgully sharing the reasons for such a sudden business decision. Siddharth Jain spearheads the region's operations overseeing all programming; network and content development; advertising and distribution sales; and marketing and promotion of Turner's wide portfolio of global brands and networks across English news, kids and English entertainment genres. Here are the excerpts:

Adgully (AG): What was the thought/ strategy when you acquired Imagine TV from NDTV; Who will you attribute to the failure of Imagine TV. It should be a leadership failure ofcourse isn't it?

Siddharth Jain (SJ): Imagine TV was not a distress asset and was performing well under a seasoned and professional team when Turner had decided to acquire it. We had bought into the vision and we committed to fund and run the channel supporting it with anything that was required. We invested substantially and put all possible resources behind Imagine for over two years. While we cannot pin what went wrong to any single event or department but what we lacked was consistency of performance or a big hit. The vision was not matching the performance, and in every forecast, there was a gap between expectations and delivery.

AG: Before taking the decision of ceasing the operations of Imagine TV you must have tried to off-load it. What was the response of the Cos you approached and why didn't they consider it?

SJ: We worked incredibly hard to exhaust all options to avoid cessation of business operations.

AG: Some people believe that GECs takes time for settling down and you were too much in a hurry in making money, what's your thought¦

SJ: This is not a premature decision. In the last two years, Turner has been committed to making Imagine work as we invested substantially and put all possible resources behind the channel. However, Imagine TV was unable to achieve the ratings consistency needed to sustain the business and support continued investment. At Turner, we follow a strict financial discipline and are answerable to shareholders. After a point, it was a business decision and we couldn't see a clear path of recovery. Finally, we had to take the tough call.

AG: Do you think in a country with 1.2 Bn population and predominantly Hindi Speaking audience, there is a space for only 4 noticeable players in Hindi GEC space. Share your thoughts...

SJ: Market dynamics in India have changed in the last five years. General entertainment and sports are big bucks and the gestation period of turning around channels have changed too. The barriers of success are going up and revenue sources are not growing in the same way as cost. The biz part of showbiz is becoming important.

AG: What are your other (Currently on) investments in India and how it is doing?

SJ: Turner is one of the largest global media companies operating in India and our business in India is robust. Operating in India for almost two decades now, Turner prides itself on paving the way for the country's cable industry growth & being the pioneers for international news and kids' television entertainment. Turner has enjoyed a successful track record in India and currently operates some of the strongest media brands here including HBO, CNN, Cartoon Network, POGO, WB, TCM and Boomerang. Turner has consistently been a genre leader in kids' TV and English entertainment and we continue to enjoy strong market shares in each genre. We will continue to be a leading and long term player in the Indian market and to explore expansion opportunities in this important market.

AG: Your relationship with Real TV too failed shortly and we saw the demise of the channel, why did that happened?

SJ: The closure of Imagine is in no way related to REAL.

AG: With, two failed experiences do you think that Turner will be ever keen to get into Hindi GEC space especially in India?

SJ: Absolutely. Turner remains fully committed to future investments and our long-term participation in India. Having been pioneers in the Indian M&E space in international news and kids' entertainment Turner currently operates some of the strongest media brands in India. We will continue to be leaders in the media and entertainment industry and to explore expansion opportunities in this key priority market for Turner.

AG: Going forward what happens to the employees of Imagine TV?

SJ: Our focus has been ensure the closure is executed in a fair and appropriate manner for all of them and in full compliance with all legal requirements, employment terms and company policies. We have used our best endeavors to make this as smooth a transition as possible for them. Turner will retain some employees for a transition period and some others may be offered permanent roles within Turner to fill current vacancies.

Turner has also set up an HR outplacement service which will provide advice on how to write a better CV, interviewing techniques and other job hunting skills. We have also introduce the employees to recruitment consultants, HR professionals from other media organizations and facilitate their new job search.

AG: India is the most preferred destination for Global media conglomerates, what's your plan for expansion in India, here-on?

SJ: Turner remains fully committed to future investments and our long-term participation in India. The spotlight is on India and it would be continue to remain so. It is a strategically important market for Turner.

AG: Any message you want to share with your employees, Producers and other partners who were earning a living from Imagine TV...

SJ (To Imagine TV employees): We are grateful to the Imagine team, which includes some of the most talented and creative people in the Indian media industry.

SJ (To our business partners on Imagine TV): The closure is a complicated process as we are ensuring fulfillment of all our business commitments on Imagine TV to advertisers, distributors and other partners. We are in constant communication with them about our plans and future direction.