Journal of Business Strategy

Talenthouse India: crowdsourcing the Indian national anthem

Tulsi Jayakumar

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To cite this document:
Tulsi Jayakumar , (2016),"Talenthouse India: crowdsourcing the Indian national anthem", Journal of Business Strategy, Vol.
37 Iss 4 pp. 12 - 23
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Talenthouse India: crowdsourcing the

Indian national anthem

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Tulsi Jayakumar

Tulsi Jayakumar is
Professor in Economics
and Program Head of the
Post Graduate Program
for Family Managed
Business at SP Jain
Institute of Management
and Research, Mumbai,
India.

1. Introduction
Crowdsourcing, a variant of open innovation models involving co-creation with crowds,
has been used globally as part of marketing and innovative strategies by hundreds of the
worlds largest enterprises as well as small- and medium-sized enterprises and startups. In
2012, 11 of the top 12 global brands used crowdsourcing as part of their marketing mix
strategies, and the earnings of digital workers performing crowdsourcing tasks exceeded
$1 billion. In India, though at a nascent stage, savvy marketers are becoming more open
to using crowds for marketing consumer goods and services through the involvement of
crowds in product design, brand names and logos. This article looks at the innovative use
of crowdsourcing for an experiential product the 52-second Indian national anthem by
a crowdsourcing intermediary, Talenthouse India, in 2013. The company used a strategy of
managed crowdsourcing to create and capture value through an out-ofthe box
initiative, christened the My Nation My Anthem (MNMA) initiative. This article considers
the challenges in using crowdsourcing strategies for such products, especially in emerging
market economies like India. We examine the process of value creation and capture
followed in the MNMA initiative.
Open innovation models are applicable to high-technology industries such as information
technology, computers and pharmaceuticals in the USA (Chesbrough, 2007). Little
research exists on whether open innovation models are useful to low-tech service
industries, especially in emerging economies (EEs) with constraints of low levels of
information and communication technology (ICT) infrastructure. This article is based on
in-depth interviews with the Talenthouse CEO and marketing team. Following Yin (2003),
triangulation of data from other sources including press reports, expert interviews in media
and other secondary sources has been used for the validation of the study.

2. Open innovation and crowdsourcing

The closed business models underlying traditional business strategy treat innovation as
arising within a firm and the firm as the hub for both value creation and value capture.
Porters (1980) Five Forces provided the theoretical framework for managerial actions
within such closed business models. Firm strategy to gain competitive advantage in such
models was based on outdistancing competitors through ownership, entry barriers and
creation of switching costs. Such models did not recognize the value-creation potential of
external resources.
Open business models, on the other hand, recognize the benefits of openness as a
means of achieving value creation for the organization (Chesbrough, 2007). Value creation
and value capture in open models arise from the use of external sources of knowledge,
especially external research and development (R&D). Further, unlike closed models, open

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VOL. 37 NO. 4 2016, pp. 12-23, Emerald Group Publishing Limited, ISSN 0275-6668

DOI 10.1108/JBS-06-2015-0064

Value creation and value capture in open models arise from

the use of external sources of knowledge, especially external
research and development (R&D).

models advocate the mutual sharing of intellectual property (IP) to advance business,
rather than control over its use to the exclusion of competitors (Chesbrough, 2003).

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Thus, based on the twin dimensions of value creation and value capture, closed and open
innovation models can be seen as lying at opposite ends of the spectrum (Chesbrough and
Appleyard, 2007, p. 63). At one end reside the closed innovation models, where both value
creation and value capture take place within the firm; at the other end are open innovations,
including crowdsourcing. Value creation in these models is community-driven, but owner
firms of community-generated content, through measures such as IP control, can capture
(realize) value for themselves.
Crowdsourcing, a term attributed to Howe (2006), is a variant of open innovation. It
essentially means getting the crowd (i.e. the public at large) to complete business tasks
that would either be performed by the company itself or be outsourced to third-party
providers, by tapping into their collective intelligence (Alsever, 2007). It is similar to other
open innovations, as it opens up R&D through a Web 2.0 infrastructure. Web 2.0 refers to
the second stage of internet development, characterized especially by the change from
static web pages to dynamic or user-generated content and the growth of social
networking. Crowdsourcing can be undertaken either by companies directly or through
crowdsourcing intermediaries working on their behalf.
Crowdsourcing intermediaries like Talenthouse provide the interface between innovating
firms and innovation communities (crowds) through bringing technology to the market.
Operating through web platforms, they function as marketplaces for the exchange of
knowledge between communities and their client firms, creating knowledge when
contributors respond to their appeals in the form of open calls for individual
contributions. However, crowd participation is restricted not just to contributors but
includes the broader public, who are invited to vote or provide their opinions.
Thus, solutions generated by anonymous communities are more broad-based, reflecting
the views and opinions of a larger community. However, the success of any crowdsourcing
initiative in value creation and capture is constrained by the ability to attract the right
crowds, and to motivate and retain them. Another constraint is the lack of adequate ICT
infrastructure.

3. Talenthouse India and the My-Nation-My-Anthem initiative

Talenthouse India was set up as a joint venture between Talenthouse, USA, and Reliance
Entertainment Private Limited, India, in 2011. As a crowdsourcing intermediary,
Talenthouse sought to generate content on digital space for its clients, so that brands could
use this additional platform to connect with their audience. However, the industry was
loosely defined. Talenthouse found itself competing not only with other specialist
crowdsourcing intermediaries that enjoyed the first-mover advantage, but also with old,
established advertising agencies. Companies continued to prefer these agencies for both
conventional and unconventional marketing campaigns, including crowdsourcing
campaigns. It was clearly not easy for a newcomer to break through this clutter. Despite its
global association and credentials, Talenthouse India found it a challenge to get noticed.
The MNMA initiative was an attempt to break through the clutter and create and capture

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PAGE 13

value through creating the first ever crowdsourced Indian national anthem for the youth
and by the youth.

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The genesis of the MNMA was a serendipitous outing to a Mumbai multiplex by

Talenthouses CEO, Arun Mehra, in October 2012. A 2003 order by the Maharashtra (an
Indian state) Government made it mandatory for cinemas in the state to play the national
anthem before the screening of films. However, as Mehra noted that October 2012 evening,
the predominantly young audience at multiplexes found it difficult to relate to this
government attempt at promoting a sense of patriotism amongst Indian movie-goers. The
unimaginative, animated version of the nation anthem played in the multiplexes, with a flag
fluttering in the background, only took away from the movie-watching experience. Thus, the
immediate driver for Talenthouses decision to crowdsource the national anthem was to
create a product that would address the perceived lack of patriotism among the youth
audience.
The youth audience also held strategic relevance for Talenthouse. This segment of
productive workers aged 15-30 years, comprising 63.4 per cent of Indias population, not
only constituted Indias demographic dividend but was also the key demographic for
crowdsourced initiatives. While Talenthouse had a few crowdsourced initiatives under its
belt, it did not have a campaign which would capture the imagination of the nations youth.
MNMA provided Talenthouse with an opportunity to create a memorable product
resonating with the youth and changing their perceptions favourably. It could also help
Talenthouse break through the clutter and increase its visibility.
In the words of Arun Mehra, Talenthouse India CEO:
It was an opportunity for Talenthouse since an Above the Line (ATL) campaign of this order
would help in creating visibility across mass media without us having to spend a rupee. (Arun
Mehra, personal communication, 3 January 2014)

Further, on the decision to target youth in the 16-30 age group to drive the initiative and
create the anthem, he said:
The only way we could get the national anthem to resonate with the youth was by actively
collaborating with them and engaging them in the creation of the national anthem- their national
anthem [. . .]. We thought [. . .] let them get the feeling My Nation, My Anthem. (Arun Mehra,
personal communication, 3 January 2014)

While creating value was important, value capture was an equally important task. Bridging
the gap between value creation and value capture was the biggest challenge (Germany
and Muralidharan, 2001). Many an innovation in the new age, while it had created value,
had failed to help the innovating firm capture such value.
Talenthouses strategy rested on two planks: to create value in the form of a unique product
by addressing all the challenges associated with crowdsourcing the national anthem, and
to identify an entertainment partner through the value proposition that a crowdsourced
national anthem would offer such a partner. This was particularly important, as the success
of value capture through the crowdsourcing initiative rested on the choice of the right
entertainment partner.

solutions generated by anonymous communities are more

broad-based, reecting the views and opinions of a larger
community

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VOL. 37 NO. 4 2016

The unimaginative, animated version of the nation anthem

played in the multiplexes, with a ag uttering in the
background, only took away from the movie-watching
experience.

4. Value creation and value capture in the MNMA initiative

4.1 Value creation

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Value creation under MNMA faced challenges in terms of the nature of the product, the
product design and the resources (crowds) used to create value.
4.1.1 Experientiality of the product. The national anthem was an experiential product.
These products differ from tangible goods and services in that they involve a greater
affective component, hedonistic criteria and customers personal characteristics. (Bassi,
2010; Pine and Gilmore, 1998). Goods and services possess a functional component, are
tangible and fungible and are consumed for what they represent. Experiences by their
very nature are personal, subjective, memorable, intangible and revealed over a duration
and involve the emotional, intellectual, spiritual and physical spheres.
Value creation in the case of experiential products was mainly one of creating memorability.
The challenge that Talenthouse faced was to make its version of the national anthem stand
out from the other memorable versions already available in the market. These included the
national anthem videos produced by an old, established production house Bharat Bala
that were considered the gold standards in the industry and had won international acclaim
at prestigious events such as Cannes and the New York Film Festival. These versions were
highly lauded and had high brand recall. How could Talenthouse prevent its crowdsourced
national anthem from being merely a me-too product?
4.1.2 Complexities involved in product design. Crowdsourcing the national anthem was
unlike crowdsourcing a brand logo or a brand design. National anthem guidelines
stipulated by the Indian Government made the task of open crowdsourcing of the anthem
on amateurs and students difficult and fraught with legal risks.
Moreover, an added challenge was the complexity involved in crowdsourcing the product
to at least three distinct sets of amateur crowds singers, musicians and film-makers
and then combining such effort into a final product. This was unlike crowdsourcing for
brand logos or product designs which typically work through an open call to a crowd.
How could Talenthouse use open crowdsourcing with three sets of amateur crowds and
ensure creation of a quality product?
4.1.3 Understanding elements of the crowd. India, with a population of 1.27 billion, 36 per
cent of who were in the youth segment (15-34 years) in 2011, had immense potential of
crowds for marketers. A large heterogeneous online crowd would offer tremendous
scope as producers, innovators and problem-solvers. However, crowds, as external
resources, pose difficulties in the creation of value, as compared to internal resources such
as firm employees or contractors (Brabham, 2008, 2012). Such crowds bear no contractual
relationship, lead to considerable risks and raise issues of accountability. Understanding
the constituents of the crowd, its motivators and access to such crowds was crucial.
Talenthouse had to identify two sets of the right crowds to create value. It had to identify
the crowds of contributors and the crowds that would vote online or give their opinions.
While the latter set could comprise rank amateurs, it was important that the contributing

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crowd comprise people with some level of expertise. Talenthouse needed to understand
the demographics and psychographics of their prime prospects segment clearly.
Participation in crowdsourcing initiatives may involve considerable commitment of
intellectual, temporal, physical and even financial resources. Hence, an understanding of
the motivators of the crowd is important, as building a relevant and meaningful value
proposition by collaborating with the crowd rests crucially on a large, involved crowd.

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The motivators for crowds could include both intrinsic and extrinsic motivators. Intrinsic
motivators are related to the psychological-emotional sphere of the individual and are
unconnected to monetary rewards. They may relate to both individual and social intrinsic
motivations. Extrinsic motivators, on the other hand, lead directly or indirectly to greater
economic rewards, recognition and/or social status for the contributor (Battistella and
Nonino, 2012).
Access to the crowd crucially depends on the state of ICT infrastructure. With only 122
million users and a penetration rate of 10 per cent of the population, Indias internet
landscape in 2012 was underdeveloped and its impact on the gross domestic product
(GDP) was abysmally low. However, the outlook for the internet in India was optimistic, with
India likely to have the second largest user base in the world by 2015, comprising 330-370
million internet users. The overall internet penetration was likely to increase to 28 per cent
by 2015, with benefits concentrated mostly in urban areas. It was further estimated that
India had the potential to double its economic contribution from the internet in three years,
from 1.6 per cent of GDP in 2012 to 2.8 to 3.3 per cent by 2015 (McKinsey & Company,
2012). A study conducted by Tata Consultancy Services, India, in late 2010 across 11
Indian cities suggested that the internet was where most of young India could be reached
going forward (Information Week News Network, 2010).
4.2 Value capture
The key requirement to capture the value created through the MNMA initiative and thus
derive a sustainable competitive advantage was to monetize the product. This required
pricing the product and identification of an entertainment partner who would buy the
product. Talenthouse decided to approach cinema halls for potential partnerships in the
MNMA initiative.
4.2.1 Pricing the product. A film produced by reputed and established production houses/
creative agencies costs about INR4.5 million ($0.08 million) compared to less than
INR0.2 million for a crowdsourced product (Table I). The national anthem initiative, if
delivered successfully and cost-effectively, presented Talenthouse with the opportunity to
be a leader in providing innovative and cost-effective marketing solutions to firms and
brands. Price could be used as a weapon to gain competitive advantage over traditional
rivals.
However, Talenthouse faced a challenge in monetizing this product. Why would cinema
halls pay for a product and incur costs that they could not recover from their customers?
4.2.2 Identifying the entertainment partner. The film exhibition industry in India, with about
12,000 screens throughout the country, was highly fragmented, with about 90 per cent of

Value creation in the case of experiential products was

mainly one of creating memorability. The challenge that
Talenthouse faced was to make its version of the national
anthem stand out from the other memorable versions already
available in the market.

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Table I Comparative cost analysis of a traditionally produced film* vs a crowdsourced

film
Description
Cast

Cost of a crowdsourced
film (INR)

500,000

25,000

1,500,000

20,000

150,000

15,000

1,000,000

35,000

Post productionaudio
Dubbing/Mixing
Music

400,000
200,000

15,000
10,000

Post productionvideo
Editing, colour correction and DI
Graphics
Locations

300,000
150,000
300,000

25,000
7,500
10,000

4,500,000

162,500

Production
Makeup artist, hair stylist, costumes, DOP and
assistant director
Food and transport for crew and actors
Camera and lights
5D Mak 3 with lenses, lights equipment,
attendants, mics and sound

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Cost of a traditional
film (INR)

Project cost

Note: *Refers to a film produced by a reputed production house or creative agency

Source: Company sources

the industry dominated by small single-screen theatres. Multiplexes, though accounting for
only 10 per cent of the share, controlled two-thirds of the box office revenue. The customer
profile of Talenthouses prime prospect, youth in the 16-30 age segment, matched the
multiplex theatre-goer.
Talenthouse conducted market research of the various multiplexes (especially in Mumbai),
the size of their footfalls and the version of the national anthem (if at all) being played in
these theatres. The results revealed that a need gap existed in the case of Priya Village
Roadshow (PVR) cinemas.
PVR is one of the largest film entertainment companies in India. Incorporated in 1995, as a
joint venture between Priya Exhibitors Private Limited, India, and the Village Roadshow
Limited, Australia, it was the pioneer in bringing multiplexes to India. It had set up its first
multiplex cinema in 1997 in New Delhi. In 2012/2013, with 197 screens, it was the dominant
leader with 30-35 per cent share of box office collections for Hollywood movies in India and
20-25 per cent share of the movies made in the Hindi-language film industry based in
Mumbai, called Bollywood. PVR commanded 70 per cent of the advertising revenue in the
cinema medium space and was associated with the top 100 brands in the country.
In 2012, India experienced an economic downturn. The growth rate of Indian real GDP fell
from a high of 9.3 per cent per annum in 2010/2011 to 6.2 per cent in 2011/2012 and then
to 5 per cent in 2012/2013. Amidst this economic downturn in 2012, the Indian film
exhibition industry was in poor shape, with attendance levels of theatres falling as people
cut back on spending. While some large multiplexes were in the red, others had sold their
majority stake to other players and several single-screen cinemas went out of business.
PVR was the most profitable player in the business and had posted a 12.86 per cent
increase in consolidated net profit in September 2012. In November 2012, it acquired a
controlling stake in Cinemax India Limited. The combined capacity of PVR and Cinemax
following the acquisition was huge, with 335 screens spread across 95 cinemas covering
40 Indian cities.
PVRs focus was on enriching the cinema experience through providing good
infrastructure to the customer, using innovations as differentiators. However, while

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PAGE 17

management could invest in movie infrastructure and ensure the experience outside the
movie hall, it had little control over the content shown within the hall itself. It could, however,
strive to make the entire movie-watching experience memorable by controlling what was
shown during the pre-show and the interval, inside the movie hall. The national anthem was
part of the pre-show movie experience.
PVR, unlike some of the other Mumbai multiplexes, had continued to play the basic version
of the national anthem, with merely a flag fluttering onscreen. Talenthouses offer of a
crowdsourced national anthem would help fulfil PVRs need to enhance the movie-watching
experience for its patrons while at the same time generating a buzz around the initiative.

5. Talenthouse strategy

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Crowdsourcing, as a strategy, has its pros and cons (Table II). In the new Web 2.0
environment, crowdsourcing assigns to customers an important role as co-creators of value
(Djelassi and Decoopman, 2013). Thus, companies can use crowdsourcing to create a
value proposition that fits customer requirements better and satisfies their needs better
(Lakhani, 2013). However, value creation and capture may be difficult due to the nature of
the participating crowds and the lack of the right incentives.
Crowdsourcing intermediaries like Talenthouse help firms create as well as capture value.
With their specialized knowledge and crowdsourcing platforms, they help in value creation
through bringing technology to the market, involving crowds and managing the output
produced by such crowds. Such managed content also forms the basis for client firms
having differential access to knowledge.
Table II Pros and cons of crowdsourcing
Pros

Cons

Facilitates high level of customer engagement

The company may get a mass of ideas,

many of which may be unusable
May not be able to generate significant
participation. The size of the
participating crowd may be too small
The incentives offered may be
disproportionate to the crowdsourcing
effort. The customer may end up feeling
exploited, especially when he/she
mobilizes temporal, intellectual, physical
and even financial resources
Customers may feel cheated due to
lack of cogent communication or due to
the company neglecting the
commitments made to the participants.
Can lead to negative backlash in the
social media
Companies may not be able to match
customer expectations with regard to
the temporal aspects. Specifically, while
the crowdsourcing exercise may get
over in a few weeks, the actual product
launch in the case of a new product
may take several months or even a
year, leading to customer
disappointment and wariness
Crowdsourcing may not be appropriate
for all brands. It is important to map the
demographics and psychographics of
the target segment to ensure interest
and participation

Customer insights based on their brand

experience can be gained. This can help
guide product development
Cost-effective; ideal for small companies with
limited budgets

Larger number of creative concepts received

in the form of submissions, compared to the
number of concepts given by a professional
agency

Generates hedonic, self-esteem and some

economic benefits for the customer, so that he
may consider the brand more relevant

Can help in generating greater brand loyalty

and brand image. Can be a buzz generator

Source: Company, Secondary sources

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VOL. 37 NO. 4 2016

Value capture in traditional closed models is based on the existence of information

asymmetries, which contribute to differential transaction costs. Thus:
It cost GM far less to source its own parts internally than to search the globe for suppliers. By
keeping information inside its boundaries, an integrated company could create value in one
division (e.g. drug discovery) and capture it in another (e.g. drug sales and marketing)
(Germany and Muralidharan, 2001, para 31).

In the new information economy, however, with information freely and abundantly available,
a firm can acquire a competitive advantage through creating knowledge asymmetries
which can be used aggressively to capture more value and generate profits.
As suggested by Prahalad and Ramaswamy (2000, p. 80):
The market has become a forum in which consumers play an active role in creating and
competing for value [. . .]. Customers become a new source of competence for the corporation.

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Crowdsourcing intermediaries can help firms gather valuable knowledge through

crowdsourcing on users and crowds, facilitate creation of knowledge asymmetries and
thereby facilitate value capture. A part of value capture by client firms, when shared with
their crowdsourcing intermediaries, facilitates value capture by the latter (Figure 1).
The task of value creation and value capture through crowdsourcing the national anthem
posed challenges for Talenthouse. Table III discusses these challenges and Talenthouses
proposed solutions to shape the initiative.
Talenthouse drew up a profile of a typical member of its core target segment, viz. youth in
the 16-30-year age group, based on an understanding of the demographics and
psychographics of this segment (Table IV).
It used both intrinsic and extrinsic motivators to encourage participation, including a sense
of membership and caring for the nation, enjoyment, fun, a sense of cooperation, a small
token monetary reward, reputation, recognition, an opportunity to work with masters and
celebrities and social capital.
Talenthouse understood the constraints posed by low internet penetration and usage to
access crowds. An understanding of the limitations of digital media prompted Talenthouse
Figure 1 Value creation and value capture through crowdsourcing
VALUE
CREATION
CROWDSOURCING
CONTENT

CROWDS
RIGHT
TIMELY

CROWDSOURCING

MANAGED

CONTENT

INTERMEDIARY
MOTIVATORS

THROUGH

CLIENT FIRM

KNOWLEDGE
ASYMMETRIES

(E.g. Talenthouse)

MOTIVATED

VALUE CAPTURE
THROUGH
CROWDSOURCING
(FOR PVR)

(E.g. PVR)

VALUE SHARED

ACCESSIBLE

VALUE
CAPTURE
CROWDSOURCING
TALENTHOUSE)

INTRINSIC

EXTRINSIC

Individual
Social

THROUGH
(FOR

Economic
Individual
Social

Source: Created by author

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PAGE 19

Table III MNMA: challenges to value creation and value capture

Challenges in value creation

Talenthouses proposed solution

Product was an experiential good

Presence of earlier memorable versions; avoid
being a me-too product
Crowdsourcing on three different talentsproblems
of quality

Build memorability
Clear positioning as the first crowdsourced
anthem by the youth, for the youth
Managed crowdsourcingbring the three
sets of talents together and produce the
crowdsourced anthem under the
supervision of expert mentors
Supervised production; mentors from the
film industry at various stages of creation of
the film. Tied up with well-known
film-makersRam Mirchandani and Shoojit
Sircar
A clear understanding of the target crowd
they wished to attract; large-scale media
campaign using both traditional and print
media. Tie up with Hindustan Times Media
as the media partner which would provide
the extrinsic motivation (recognition, status
and social identity) to participants
Talenthouse proposed to use a mix of
promotion channelsadvertisements in
traditional media through a tie-up with a
media partner, HT Media; promotion spots
to be screened by the entertainment
partner; Web 2.0 (Facebook, Twitter,
Tumblr); company website

Involvement of amateursissues of quality and

meeting official guidelines, i.e. reputational,
economic and legal risks

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Motivating the right kind of crowd

Access to the right crowdwhile digital media

addressed the desired demographics and
psychographics, the impact of internet itself was
limited in India

Challenges to value capture

Movie halls/multiplexes could not pass on the
production charges of the anthem on to customers

Movie halls could hire established production

houses to create the film, if payment was involved

Traditional broadcast media would have the reach

but would not ensure focused deliveryengaging
the customer with the same level of experience as
a movie hall
Identifying an entertainment partnera cinema hall
based on the size of its footfall, its spread across
the various cities of India and the version of the
national anthem (if at all) being played in these
halls
Ensuring that the entertainment partner
collaborated in the crowdsourcing initiative by
showcasing the crowdsourced anthem as a
Talenthouse creation

Talenthouses proposed solution

Produce a cost-effective product, which
cost a fraction of what it would cost if it
were to be produced by an established
agency
Offer the anthem free to the entertainment
partner (PVR) for a period of three months.
This would stimulate trial, leading to
acceptance
Look at alternative meanssingle movie
halls or multiplexes

Identified PVR as an entertainment partner.

Its acquisition of majority stake in Cinemax
had made it the largest player in the film
exhibition industry in India
Offering a value proposition to PVR; setting
out the terms and conditions and
deliverables of either party clearly in the
proposal

to seek both traditional and digital media to reach out to the prime prospects. They
collaborated with Hindustan Times (HT) Media Limited, one of Indias largest media
houses, as the media partner. Their flagship newspaper, Hindustan Times, was the top
English daily in North India in 2012 and had a readership of 3.7 million readers across India.
Struck by the campaigns national appeal, HT agreed to carry front-page ads in its Delhi,
Mumbai and Kolkata editions, showcasing the initiative. The ads would promote MNMA as
a Talenthouse initiative. HT would support the campaign throughout and would carry the
results of the campaign as well. These advertisements generated sufficient buzz and
ended up promoting the concept of crowdsourcing while carrying the Talenthouse name
and logo on the advertising copy.

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Table IV Demographics and psychographics of Indian youththe target group

Demographics

Psychographics

16-30 years
Affluent
Educated (high school/college
graduate)
Lives with parents/nuclear family

Loves change
Needs to engage in social causes
Friendly (seeks friendshipsonline and offline)

Urban (lives in metros, Tier II cities)

Multi-facetedis engaged in several activities,

other than work, at the same time
Consumes multimedia in a big way

MiddleUpper class

Is fun-loving and likes to take risk

Likes to express himself/herself. Confident

Spends at least 15 h per week on the net
Watches English soaps (Friends, etc.) on
TV; is a Bollywood fan
Has strong views on sex and marriage
Respects traditioncelebrates festivals with
fervour
Believes India will be a super-power by
2020. Wants to live and work in India

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Source: Company sources

To mitigate the legal, economic and reputational risks associated with crowdsourcing on
anonymous crowds composed of amateurs, as well as to deal with the complexities of
product design, Talenthouse undertook managed crowdsourcing, which entailed getting
the right team together through crowdsourcing and empowering them with the tools, both
money and resources, to create the end-product. Talenthouse struck partnerships with two
acclaimed filmmakers, who agreed to help in the creative supervision of the crowdsourced
national anthem as mentors. A pre-production team of these mentors and the Talenthouse
team shortlisted two teams of the top-10 crowdsourced talent of film-makers. Selection was
based on the teams ability to deliver within the proposed budget of INR0.1 million. The
two teams, along with the winning singer and musician, shot two versions of the national
anthem at a fraction of the cost that would have been incurred if shot by an advertising
agency/production house. The winners of the MNMA initiative were youth between the ages
of 19 to 27.
Talenthouse named PVR as the potential entertainment partner and approached it with the
proposal to create a crowdsourced Indian national anthem for free. The proposal to PVR
contained the deliverables of each party. Talenthouses promised deliverables included
ensuring a minimum of 100 submissions, ensuring a reach of 1.5 million people and
creating the national anthem. As entertainment partner, PVR was expected to announce the
event, giving equal credit to all the partners; carry out in-house promotions through putting
up marketing collaterals in its theatres; screen a consumer spot created by Talenthouse for
two months to generate awareness regarding the initiative; undertake publicity and
promotion of the launch event; and, finally, to showcase the crowdsourced national anthem
in its cinema halls before the screening of movies. The MNMA initiative carried the value
proposition of strengthening PVRs image of being the front-runner in innovations in the film
exhibition industry.
PVR accepted the proposal conditionally, agreeing to showcase the anthem in all their
Mumbai and Ahmedabad theatres for three months. They cautioned that if they did not like
the film, they would screen it for only a week. Talenthouse decided to undertake the risk of
producing the crowdsourced anthem. The campaign, supported by HT media, was
unveiled on 26 January 2013, to coincide with Indias Republic Day. The contest lasted
almost an entire month, during which it got free media coverage. Three sets of talents,
including singers, musicians and film-makers, were crowdsourced through open voting.
The results of the contest were announced on 23 February 2013.
5.1 Gauging value captured
The initiative attracted coverage from both traditional and digital media. Company
estimates suggest that the initiative reached more than 10 million people across India
through public relations (PR), participation and voting. Both Talenthouse and PVR were at
the centre of the buzz generated around the MNMA initiative. Talenthouse estimated a

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Why would cinema halls pay for a product and incur costs
that they could not recover from their customers?

direct value add of INR70 million through free media coverage, full-page ads in different
editions of the Hindustan Times, social media activation and the promos played at PVR in
27 cities on 213 screens. The entire Above the Line (ATL) initiative lasted for six months.

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Following the MNMA initiative, Talenthouse managed to attract several high-profile

campaigns, including Vodafone, Volkswagen and Ambipur. The company estimated its
revenues in 2013, owing to the clients generated on account of the MNMA initiative, as
INR367.5 million.

Keywords:
India,
Crowdsourcing,
Emerging market economies,
Experience good- national
anthem,
Open and closed innovation
models,
Value creation and value
capture

Did crowdsourcing create value for the ecosystem? The answer to this question lies in the
interest in crowdsourcing following the MNMA initiative in India. Media covered the MNMA
and, immediately following MNMA, top Indian dailies and magazines carried articles on the
rise of crowdsourcing in India. Talenthouse was mentioned in these articles. It was evident
that value capture extended not just to Talenthouse and PVR. The value for the ecosystem
can also be understood in terms of the lower costs to companies using crowdsourcing
intermediaries rather than traditional agencies.

Summary
What can we learn from this case study? EE firms can use open innovation models based
on crowdsourcing not only to create and capture value for themselves, but also for the
entire ecosystem. While such models have been used typically by marketers of products
and services, they can help in the marketing of innovative products, including experiential
goods.

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About the author

Dr Tulsi Jayakumar is currently Professor in Economics and the Program Head of the Post
Graduate Program in Family Managed Business at S.P. Jain Institute of Management and
Research, Mumbai. An alumnus of the Delhi School of Economics, she has a rich
experience of 24 years of teaching across the country. She regularly contributes to
business newspapers, including Mint, Hindu Business Line, Free Press Journal, etc. Her
cases and articles have been published by reputed national and international journals and
case repositories and her cases have won international acclaim. Tulsi Jayakumar can be
contacted at: tulsijayakumar@gmail.com

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