Times Group inks JV with BBC

(##include msid=43376741,type=11##) MUMBAI: There’s a new media juggernaut rollinginto town. Born out of the marriage of two of the world’s big mediapowerhouses, BBC Worldwide and Group, it promises to dramatically redraw the contours of themagazine business. The engagement happened last October, through amemorandum of understanding (MoU); the marriage took place on Wednesday when thetwo sides sealed the agreement for a 50:50 joint venture. For starters, and will come under theJV.Vineet Jain, managing director of Bennett, Coleman & Co(publishers of The Times of India), said a number of new magazines would belaunched under the new JV. "We’re still studying the market," Jain said,when asked at a press conference in Mumbai on Thursday what these new magazineswould be.Peter Phippen, managing director of BBC Magazines, said:"At BBC Worldwide, we reacted swiftly to the news that there was the opportunityof a publishing joint venture here...We were excited by the opportunity we sawin India. But equally by the opportunity to partner with an outstanding company,in Bennett, Coleman. Plainly, we would not have had the courage to pursue anybusiness opportunity here without the support of a strong partner. Ourexcitement is palpable because in this environment of growth, magazines willgrow faster than the economy grows."Jain said the fact that BCCL hadchanged its bachelor status after staying single for decades and chosen to tieknot with BBC signalled its belief in the potential of the magazines business."Just as we have done with newspapers, we will constantly innovate and we willdrive the market. This venture marks a new beginning for both media houses, andtogether, we will publish magazines that capture the pulse and mood of ourreaders."BBC is so closely associatedwith broadcasting that not many outside the UK know that it’s thecountry’s third largest magazine publisher. "We publish thecountry’s biggest and most profitable magazine,," said Phippen. BBCpublishes over 50 magazines, including market-leading ones in food, gardening,motoring, teen entertainment, home interest.Arun Arora, president,BCCL, said JV would redraw the magazine landscape. "When two organisations suchas andcome together,we’re not interested in one plus one making two. We’re looking for amultiplier effect that is several times larger.""We are driven byone overarching philosophy: to anticipate the needs of our customers and fulfilthem. The Indian economy’s growing at a scorching pace, you can be surethat consumer aspirations are growing even faster. This is fertile ground formagazines to blossom and bloom," Arora added.Pradeep Guha, presidentof BCCL, said and were at the very top of thedemographic pyramid of readership. "Together, they symbolise the aspirations,lifestyles and mindsets of urban India." Guha said while ad revenue earned byIndian magazines in the past 5 years had risen by 69%, those from the Timesstable had beaten the industry with a growth of 75%. BCCL’s CFO ProbalGhosal said the JV would unlock and enhance value of the magazine brands.Ian Watson, director of strategy and business development for BBCMagazines, said the new company might look to selective distribution of titleslike in UK. "There is a hugeinterest in Bollywood there and there are 60 cinemas dedicated to Hindi films.If logistics work out, there is scope for selling to Indian diaspora there."In long run, Watson sees other potential synergies as well. BBCpublishes , a magazinenamed after a weekly music chart-show on BBC TV. "The Times Group has a musicbusiness that’s growing all the time, so we can explore otheropportunities."