Reliance losing in brand games and policy

Reliance’s gas pricing quandary continues with warehouse owner IGL retailing gas at up to $15 and Reliance following its earlier efforts at increasing its $4.2 supply rates to PSE Oil companies with a suit against the government asking it to pay more for the gas purportedly using the IGL model for itself even as a distribution supplier and not a retail distco like IGL or Petronet LNG

Reliance has failed on maost strategic fronts except in greenfield consumer and sports ventures like the Mumbai Indians team franchise , co branded cards etc where it has yet to begin or dowes not pull significant revenue compared to the Oil brand. Reliance has been almost synonymour with petrochemicals and oil enterprise int he country away from issues of subsidy and government benefaction for a decade or so, with Petro margins and oil and gas discoveries keeping markets happy,. Its last 2 years in the dust have been tough for Indian markets as a whole and there still might be a significant correlation thouhg not an over arching one between its and Brand India’s fortunes.

Reliance I would like to believe has frittered away the market’s dull times in continuing to expect largesse and

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“sympathetic understanding” from public sources and markets. Its consumer brands are in no position to claim leadership and thus have no significant launches to their name. Its LTE venture is  working out a smashing deal at 10X the 3G industry’s competition and while ADA group has not done nay better either, it has at least delivered on time in long gestation projects which others would not even take up including the Power sector where delays and “non performance” are more understandable. Mukesh’s Reliance has not aggressively moved in infrastructure because it knew that investors would not empathise with the “long run” financing requirements of the sector but still, its alternative plans are almost in a state of a “null” ennui without response or favor it so much loves in its dinner plate.

There are no loyal investors left onthe Reliance bandwagon and they have to move fast before the M&M’s and the JP ‘s take over fromt hem with 1/10th the capitalisation and a much larger understanding of the current market and who it can be argued worked with almost the same handicaps and invested in unforgiving propositions

Also ADA’s failures in the financial services area could be a thing of the past soon when even they can look at aggressive growth again, leaving big brother with no work or profits on hand

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IPL’s new revenue streams | Hotshots at Advantage zyaada

If you follow the brand valuations for the IPL here, you would note the vertical cliff between revenues after season 1 and season 2. Also, the same is likely to repeat again in season 3. However, most of us would find the pricing for outdoor/theatrical rights for IPL coverage which in fact may not cover public radio and is unclear about use of team logos etc, seems to have been a cheap affair for ESD. OR, if Lalit Modi has done his job right, then there is as of now a very minimal revenue share for the TV network, the teams and the On ground sponsors are also getting away probably would be a very tightly monitored roll out as all the stakeholders would want to be visible and / or paid for the game in action and the real brand value would probably factor in this roll out of IPL at even 10 times the bid of INR 3300 crores at the very least.

Apart from this, team revenues would also need to rise vertically again for season 3 as time for rebidding is close at hand and some voices will already be contemplating new team mates in the pits. If not, trading is likely to get very ham handed despite the adding teams in during seasons 3 and 4

Here are the few tweets about the rights being granted and what has been happening:

What are the revenue share arrangements for ESD? and ESD with Mall/Theatre operators? MSM pays 80% to IPL till season 5, 60% till season 10

As per GoI broadcast Ministry rules all DTH providers have to get the channels from MSM, now if ESD uses at theater?

Big TV had earlier pulled out of a on ground sponsorship whn Airtel earned on-air DTH rights from MSM, Coke has on-air rights, Pepsi on grnd

MSM had earlier paid $1.79 billion to IPL for telecast rights for 10 years and the 160 cr settlement later for season 2

ESD would thus control IPl coverage in cinema, stadia and other public places for 10 years..they should pay the TV ntwrk used for broadcast?

Entertainment Sports Direct wins IPL ‘theatrical’ rights for $71.7mln till 2019 from Season 3 on, That means TV networks would now bid again

Lakers shining the Suns! At least NBA fans in India are happier with the new ESPN India imports

The Sales numbers from Apple $AAPL though their self congratulatory notes don’t sound too polished

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