New Delhi: Data Access (India) Ltd, an affiliate of Richard Li's Pacific Convergence Corporation, is now gearing up to be a more aggressive convergence player. The company will intensify Now TV operations in 15 cities - beginning with Jamshedpur - and aim at a channel reach of 7 million homes by the year-end. Data Access has appointed Catvision as its distributor and plans to roll out over 500 decoders to enhance the penetartion of the free-to-air channel Now TV.The television initiative is a part of the two-pronged convergence strategy for Now, under which content will be driven by a synchronisation of now.com and Now TV; and Internet access will incorporate Now ISP, a four-tier layer of service from dial-up to DSL.
Now has already invested around Rs 100 crore (including gateways) across four cities. Around 95 per cent of its investment has been in the ISP and portal business.
However, it is the Internet access which will drive Now business in the initial stages. Says Mr Rajiv Jaitley, executive vice-president, marketing and sales, Now: ``We're planning to secure subscriber base of over four lakh in four cities.''
Now plans to launch Internet access products in Chennai and Bangalore by March-end 2001. Now has already registered subscriber base of 50,000 in Delhi and 20,000 in Mumbai.
Says Mr Jaitley: ``Currently, we're evaluating these four markets. We'll enter any city which can give us 20,000 subscribers.''
He adds that the Now brand will be promoted like an FMCG brand and will be pushed through the IT and peripheral channel as well as FMCG stockists. Now has already developed a network of seven distributors and 300 retaliers in Delhi and five distributors and 200 retailers in Mumbai.
Having invested Rs 5 crore in the launch advertising and promotion burst (till December), Now plans to scale down its advertising budget and sharpen focus on on-line promotions, roadshows, sponsorships and prize schemes. Now plans to undertake brand-tracking survey by April-end.
Also for the purpose of marketing activities, Now is broadening its target audience from SEC A to SEC B, in the age-group of 19 to 29. Now will look for sponsorships - like any other FMCG brand - in areas like music, movies and cricket.
Says Mr Jaitly, ``We'll invite Miss Femina Celina Jetley to events co-sponsored by us with Planet M; and also for the promotion of our portal.''
Now also plans a raft of youth-centric activities at college functions (IIT fest), on-line promotions (internet sales account for 60 per cent of NOW's overall access sales), rock-shows, cyber-caffes, shopping malls (like Shopper's Stop and Crossroads) and high-traffic locales (it sold 7,500 packs of Rapid at a recent Connaught Place festival in Delhi).
Now has tied up with NetAcess for penetration in the cybercafes. Currently, NetAccess has eight caffes in Delhi and plans to launch 100 in Mumbai, Delhi, Chennai and Bangalore by the year-end.
In the access business, Now plans to remain focussed on its unique post-paid option Rapid, which is offered at a subscription of Rs 199 and billed on the basis of hourly Internet usage. Rapid accounts for 80 per cent of overall access revenues.
Now is also in talks with a couple of PC makers for the bundling options. It also proposes to do a series of training sessions with students. Another growth area will be alliances with IT educational institutes: Now has tied up with NIIT for Delhi amd Mumbai. Now it is targeting to be across all 350 institute centres in Delhi (up from 100 currently); and also 500 centresin Chennai.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.