Licensing

1
Licensing JV in the Indian Context

• Hoshang Billimoria
• CEO Next Gen Publishing Ltd.

2
Not so long ago

• JV's unheard of except for Reader's Digest
• Licensing rare because of
• Restrictive rules
• Nature of the Indian economy
• Just getting a magazine registered has been a
  laborious process
• Magazine sector was not so attractive

3
Some progress since then

• JV's now exist both for
• Newspapers
• Magazines, eg. Haymarket
• Licensing has become very common
• Wholly owned subsidiaries still rare
• IDG, Conde Nast

4
Why licensing?

• This is the most popular method used by
  international publishers
• Ready made title
• Ready recognition from readers
• Content available
• Less investment on editorial staff
• Instant recognition by advertisers

5
What does licensing involve?

• Administrative fee
• Minimum guarantee
• Royalty
• Duration

6
Does licensing always succeed?

• NO!
• Why?
• Competition amongst licensees
• Unrealistic licensing terms
• Content not adapted to local conditions
• High cost model cannot succeed in India

7
When does licensing become a JV?

• Big title or a big overseas publisher
• Spectacular success in the Indian market
• Congruence of goals integration of working
  styles
• Management control

8
Wholly owned subsidiary

• Still the exception
• Title has to be very strong in the Indian market
• Oversees company normally a media multinational
• Ideally suited for a late entrant or a publisher
  with aggressive growth plans
• Can result in high learning costs
• Complete control

9
Our experience

• We have a licensing arrangement with Emap VNU
• Syndication arrangement with IPC Media
• Our philosophy
• Mixture of home grown licensed titles
• 3 of our 6 titles have a licensing/syndication
  arrangement
• Way ahead will be dictated by our own strengths,
  our priorities compulsions of the market place
• Motto Both sides should win, then success is
  assured