The Hindu Business Line : With more ads, HBO hopes to break even in two years

MOVIE channel, HBO, is expected to break even in the next one to two years and the proof is in the channel's higher reach as well as increased number of advertisers, Ms Shruti Bajpai, Director (Marketing), said.

"Our model has worked very well and we are on the road to breakeven," Ms Bajpai said. HBO was launched in India in September 2000 and was expected to break even in three to four years from the launch period.

Continuing to focus on blockbusters to retain its popularity among movie audiences, HBO has announced Gladiator as its mega movie for the year.

A substantial portion of the channel's programming has been movies but the channel is not averse to other programming formats, Ms Bajpai said.

HBO's strategy of offering a varying mix yet within a theme has been a successful model in terms of viewership as well as advertiser strength. According to Ms Bajpai, the channel's reach has expanded to 15 million households from 10 million households a year ago. This is attributed to the tie-up with Zee Telefilms, enabling the channel to expand into more households, moving along as a part of the Zee bouquet.

Advertiser presence on the channel moved up to 130 from the previous 80. "We have big names such as Samsung and Unilever as well as local players such as Platinum and Gili," Ms Bajpai said.

HBO has been able to garner good viewing rates for its thematic movie presentation. "We managed to get good ratings for Oscar film runs and Summer Action runs," she said.

As regards overlapping of films on HBO and cinema halls she said the delay in exhibiting films in cinema halls had lead to this situation. HBO has planned a multi-city advertising campaign for Gladiator. "We are buying spots on other channels such as MTV and Discovery. We are also looking at advertising in cinema halls, radio and the Net," Ms Bajpai said.

The channel's November and December 2002 line-up include Payback, starring Mel Gibson, Excess Baggage starring Alicia Silverstone, 3000 miles to Graceland starring Kevin Costner and Kurt Russell, and Babe: Pig in the City.

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