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Industriya Reklamy No. 11 - June 11, 2004
The business community was holding active discussions last year in connection with the founding of the first specialized business TV channel in Russia. It was finally opened in the autumn of last year, when RBC TV broadcast its first programs. There were plenty of dark forecasts, predicting that nothing would come out of it, and if anything came out, it would be bad. However, the TV channel is operating, and at present, it is one of the most profitable divisions of the RBC Information Systems holding company. German Kaplun, the chairman of the Board of Directors of the company, believes that his main personal task is to choose the right people and to organize them correctly.
What has made possible the emergence of a business TV channel in Russia? The country has grown up. The market has grown up. This was the right moment, because a need for such a TV channel had emerged for the people. This is a different method of presenting information, which had had no analogues until recently. It envisages the possibility of "dropping" into a TV screen for 15 minutes to grasp what needs to be grasped and then to "rush off." Do you remember the Russky Telegraf newspaper, which was, in fact, a prototype of Vedomosti? Regretfully, it appeared ahead of time. And Vedomosti has been successful, because a more fitting moment was chosen. The aspects of being lucky and choosing the right time are quite important for business. Have you managed to achieve the expected size of the audience over the time since the launch of the channel? According to a survey by COMCON, the weekly audience of RBC TV is about 1.6m people. However, in general, research in Russia is aimed at identifying people with above average incomes, and nobody estimates the business audience. In the future, we will conduct surveys independently. In fact, not the total number of viewers but the proportion of the high-income target audience is important to advertisers. Where can your programs be watched? As for Moscow, we broadcast our programs via Kosmos-TV, NTV-Plus, Divo-TV and Comcor-TV. Additionally, we have morning programs on the Stolitsa channel in three districts of Moscow, and we are included on the cable TV package in one of the sub-districts. Our programs can also be watched in Moscow hotels, business centers and prestigious retreats. Nineteen telecommunications operators show our programs in their towns in the Moscow region. It was a surprise to us that government officials watch our programs. When I was told about this, I did not believe it, but it was true: our programs are broadcast in the presidential residence and in the offices of the government, the Federation Council, the Federal Security Service and the Audit Chamber. At the end of May, RBC TV will begin to broadcast its programs in the State Duma. Our programs can also be received in the embassies of Latvia and Belarus. RBC TV now broadcasts its programs in as many as 70 cities in Russia, covering over 23m viewers in different regions. When a product oriented to a limited audience is created, there is the risk that it will not be comprehensible for the public in general and will be too superficial for specialists. My distant relatives from Zaporozhye have telephoned me recently and said, "Now we can see your television here. News is presented in a non-standard way. Although, we cannot understand everything yet, it is interesting". Ukraine in general is a special case: their cable networks are struggling for the right to broadcast our programs. Why? Nobody would ever understand it here. Miracles do happen in this world. Seriously, there were some problems at the initial stage. For example, there is slang that is common for businesspeople, and failure to understand it looks unprofessional. For example, when an anchorperson says Finanshnl Times, everyone is disgusted, because it should be correctly pronounced Financial. At the same time when a broadcaster makes a mistake when speaking Russian, for example, stresses something wrongly, financiers don't always notice it. So, what was your principle for recruiting staff? Who should work on such television: specialists who need training in journalism or journalists who need to have detailed knowledge of some narrow field? We have formed a team of people with absolutely different educational backgrounds. Some of them have been transferred from the RBC news agency, and some have come from the sector of economic journalism. A lot of economists and brokers have come to work with us too. Everything depends on the type of programs. In the Capital Markets program preference was unequivocally given to specialists. It turned out that performers cannot be recruited as broadcasters. Such a person is unable to just read out some information but needs to perform all the time. Therefore, we were finding people in different places, making inquires and mistakes. Artyom Inyutin, formerly the director of the RosBusinessConsulting news agency, has become the chief executive of RBC TV. Artyom supports a very important process of coordination between different divisions, which includes even small details. We operate as a unified organization largely due to his efforts. For example, if a group of RBC TV reporters is assigned to a site, an RBC correspondent does not have to go there, and vice versa. This is a way to reduce costs. Mikhail Yermolayev, who earlier worked for REN TV, has become the editor-in-chief Are you personally willing to begin your day from business news from RBC TV? It is necessary for me. Earlier, I listened to the Echo of Moscow radio station, and I still do that in the car. The Internet was a great remedy for me then, as I looked through press digests on the net. Now I watch RBC TV while having breakfast or supper. In my office I always have a TV set turned on, and obviously, I watch RBC TV. What is the structure of the channel's program schedule? Programs are broadcast from 7 a.m. until 1 a.m. Digests of Russian and foreign press are broadcast until 10 a.m., and news is broadcast every half an hour. In the morning, there are some "pops," as there is less information about financial markets and more general business news. During the day from 10 a.m. until 7 p.m. it is purely office television. News blocks follow one another, and stock market information is provided every 15 minutes. After 7 p.m. the schedule becomes more diverse, and such programs as Intrigue of the Day, Business Abroad, Points of Interest appear. We are a little broader than CNBC. CNBC in the West is a purely financial television channel: figures and only figures, and in fact, there is no news. There are more than 200,000 private firms in America, and people hold shares and are interested in prices and quotes. Fortunately or unfortunately, not the entire business community is interested in stock news in Russia so far. However, this situation is changing now. We are following the western way but with a big delay. Therefore, presently, we are not just financial but also business television. What is the channel's program schedule filled with? We independently produce over 95 percent of the content. News is broadcast continuously, and therefore, they are produced independently. Minimum politics, if unrelated to business, minimum "social stories." For example, for First Channel, such an event as the death of miners is a big social issue, a topic, which they need to cover from every point of view in great detail. However, we cannot afford it. Business is dynamic. We would just say that the tragedy happened in a particular place, and report the number of victims. Yes, it is bad news, but you should understand us correctly: a businessperson can devote just 20 seconds to it, because he has other things to do. During work, a person has no free time, because he needs to work. Therefore, we are trying to "highlight" exactly what is necessary for businesspeople. We also cooperate with CNBC and CNN. When we need some world news, we use their information and video reports. If, for example, Warren Buffett, one of the world's major investors, can be interviewed by CNBC, it is far more difficult for us to arrange for an interview with him. It is easier for us to receive a ready interview, and that is what we do. Do you have plans to go beyond the limits of economic themes and to test your strength in a different format, for example, in entertainment? We do what we can do. And we can work exclusively with specific audiences: the business audience, as well as the computer and automotive audiences. We see no prospects for ourselves in other industries for the next several years. Additionally, competition in the entertainment television sector is much higher. We welcome competition, but why fight for the same slice of a pie, when there is another "vacant" slice next to it? You have declared you would form a specific group of advertisers. Does that mean you subject them to some "selection" process for the sake of a pure genre? Absolutely not. It is a matter of whether a specific advertiser needs to place ads on our channel. We charge a noticeable extra fee for the quality of the audience. Why would Coca-Cola or a bleach manufacturer pay an extra fee? A businessperson does not consume any more Coca-Cola than a schoolchild or a student. In contrast, investment and insurance companies and banks of all kinds can receive really high benefits from placing their ads on our channel. What are the main categories of advertisers placing their ads on RBC TV? They are related to premium-class real estate, oil, investments and insurance companies, banks and carmakers. There has been a company advertising fish recently. They came to us because they think they have a premium-class, expensive product. Additionally, there is a rather broad category of companies that we have attracted to television, such as Tatneft and Aquarius. A majority of business channels in the world sell time slots for advertisements independently. Selling time slots independently, they can attract companies that were not present on television before. The task is somewhat easier for us in this connection. We have over 1,400 advertisers on the Internet, and therefore, we deal with people whom we have already established contact with. We believe that advertisements on our channel are more efficient for the target audience, for branding and real sales. How do you attract them? Do you show them specific figures and let them "feel the difference?" I have a friend who is the chairman of a commercial bank. When he places his ads on the upper left corner of RBC's website, his friends, who are also the chairmen of different banks and their deputies, telephone him. He reckons our whole audience is of the same category. People in this group can see each other's ads, communicate and talk with each other. One can say to the other: I have seen the advertisement of your bank - well done! This is a specific characteristic of our audience: such a fact can have a stronger effect on them than a social and demographic profile. However, we certainly prepare profiles of the audience. When a decision is made by the chief of an advertising or marketing department, he needs figures to report to his boss. At the same time for a chief executive a social and demographic profile is of secondary importance. Is it true that the amount of ads on your channel is not more than 6 minutes per hour? Can this amount cover the costs? Under our business plan, we are to reach profitability by March of next year, and we are developing in accordance with this plan. In fact, we believe that six minutes are quite enough. Additionally, RBC TV sells not only time slots for direct advertisements. Quite unexpectedly, we have received a lot of orders for purchasing programs from Belarus and Moldova. Ads of other formats are also sold, for example, we use banners. We are actively implementing a program of installing remote cameras at banks, and special dedicated lines are provided for that purpose. This program envisages making live reports from banks, whose specialists can comment on an event at any moment. This is very convenient for a bank. Analysts and brokers can go to a special desk and be able to talk with an anchorman live without leaving their office. If a bank wants broader representation on our programs, the wall in the background is beautifully styled, and the company's name can be written there. Of course, this is advertisement. And income from this additional source is so far comparable to income we receive from direct advertisements. What is the structure of the RBC Information Systems company? What is the proportion of each business sector of the company's sales volume? We originated as a news agency. After that, a sales house was founded (at present over 50 people deal with this business). And now we have a TV channel. These are the three major divisions in our media business. Half of the company, which is almost 600 people, work for the TV channel. We also have a business software development division. Advertisements are the main source of income for us. Software sales are the second largest source of income. As for the sale of information, which we started with, it is a stable business, growing by 10-15 or a maximum of 20 percent a year, but not more than that. How deeply are you involved in the television process? I can let myself suggest some intuitive ideas for consideration. For example, if I believe some new program would be useful or some of the existing programs are still imperfect, I can go to the general director, and we hold a meeting of the staff to discuss the issue. Employees give their opinions. If the question is not of principal importance to me, they make the final decision independently. I just give my recommendations and my opinion, and make suggestions. If the theme that is discussed is of principal importance to me, I insist on my position, but there were not many such instances. We have a high level of mutual understanding and largely share the same opinions with all our partners, which is always extremely important for business. Current work in the company is mainly done by RBC General Director Yury Rovensky, Artyom Inyutin and Alexey Kuzovkin (the director of the IT division). As for me, I rather prefer and by my nature am more inclined to deal with strategic issues. Primarily, I am responsible for the company's strategy and contacts with investors, and as for other issues, such as our information service and specific marketing problems, I oversee them, when necessary. Are you a tough manager? People who work with me in our company are far tougher than me. Therefore, I have no need to be tough. As the business grew, did you have problems with keeping a distance from your subordinates, being a boss and being a human being at the same time? I had such problems at an earlier stage. In the past, I invited some of my friends to the company, and it was difficult to maintain relations, to be the boss during work and a friend after work. Now I know how this should be handled. We have a democracy in our company, within certain limits, of course. If everyone has absolute freedom, there will be endless discussions on every occasion. There should be a person who says at some moment: stop, we will just do this. How actively do you participate in the company's corporate life? When there are over 1,000 people at the company, you just do not know many of them. I was shocked when we were recruiting the television team. We were working in a test mode for three months. For example, in a corridor, you see a person walking in the opposite direction. You think you know him, because you have already seen him in a TV program, but he does not know you. Now everything is different. There is an introductory course for every newcomer to be told about the company. We have big parties twice a year, timed to coincide with New Years and the company's birthday in May - we will soon be 11 years old, by the way. We also have special meetings for top managers (about 200 people). There are also a lot of corporate events that start spontaneously: the HR Department organizes different tournaments in bowling, curling, billiards. I just do not have enough might to participate in this, too. Can you say anything specific about yourself: this is my personal achievement, and this was done by the guys? We are a team, and so, we do everything together. A manager's merit is being able to find other managers. A good team, which can cope with anything, is my most important achievement. It does not matter who was the first to say something but it is important how it was done. As for RBC TV, the fact that in general, it has been created is the most important thing. Possibly, my credit in the creation of the initial concept is about 40 percent, and as for its implementation, it is by 90 percent due to Artyom Inyutin and Mikhail Yermolayev (the editor-in-chief of RBC TV). How many hours a day do you work? Do you have time left for anything else? I come to work at 10 a.m., and I leave the office at around 9 p.m. In total, its about 11 hours. Over the past five years I have been planning to go in for Wushu again. I used to be a trainer in the past. I still can do the splits, if I warm up for half a day. Is it normal in modern business that a person gradually moves to the office to live? Everything depends on the person. I have friends who come to the office at 1p.m. and leave early. Possibly, we push ourselves hard, look for flaws in ourselves, and we are trying to improve ourselves too vigorously. There are people who live far more relaxed, and possibly, they are happier. Can you call yourself a happy man? Yes, I am happy. German Kaplun, the chairman of the Board of Directors of RBC Information Systems Joint-Stock Company German Kaplun was born in Moscow on October 23, 1968. In 1991 he graduated from the Moscow Institute of Radio-Electronics and Automatics, where he majored in programming. German Kaplun received a Master's degree in economics at the Plekhanov Russian Economic Academy (his thesis was devoted to modern marketing techniques). He worked in the sector of program consulting and was a director for banking technologies at a Moscow company specializing in software development. German Kaplun is a co-founder of a small bank, a company that sells computers and software, and a company operating on the real estate market. He had been the deputy general director of RBC since 1998. German Kaplun has been the chairman of the Board of Directors of RBC since 2000. The RBC Information Systems group of companies is comprised of the RosBusinessConsulting information agency, RBC SOFT Private Joint-Stock Company (dealing with software development and IT consulting), the RosBusinessConsulting Publishing House (dealing with the production and dissemination of RBC's printed products) and the RBC-TV Private Joint-Stock Company.
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