The government claimed an 87% achievement of digitization while the study conducted for MxMIndia by Television Street Maps showed this achievement to be only 59%. While this figure is for cable and DTH homes, that in cable homes alone is a low 38% as against the I&B ministry claim of 81%. MxMIndia spoke to Joydip Kapadia, Business Head, Television Street Maps on the issue:
01. There is a huge variance between the TSM study figures of 59 per cent total digitization as against 87 per cent which the government is quoting. Why do you think do we have this huge difference between the two figures?
I wouldn’t be in a position to comment on the numbers quoted in other studies. After all, whether its the authorities or TSM or other third parties releasing info about the ground, we all have to resort to diverse methodologies and assumptions. Sometimes the estimates of individual studies could vary due to the underlying assumptions considered. These assumptions work at multiple levels – each or all of these assumptions levels could influence the end result. For instance, differences in defining the areas within the city, definition of Digital TV (including or excluding DTH), total cable homes in a city extrapolated from census and other sources – are just some of the places where assumptions taken upstream within the analysis could produce variations in numbers coming out downstream – at the end of the analysis. All I can say is that our data is based on information obtained from the ground overlaid with our professional and expert assumptions.
02. By your estimates how much do you see the 59 per cent grow to by October 31?
It’s difficult to predict given the scale of the initiative and the number of players and variable involved. I wouldn’t like to hazard a guess.
03. Would you see broadcasters lose out because of the delay (given more carriage fees, the delay in transparency, but then assured reach)
We have actually not looked at these aspects so I wouldn’t like to say anything on that.
04. Is there any one thing that you would like to see being done right if there’s a delay in the date and/or for the digitization for the rest of the country?
We are not direct stakeholders in this and cannot offer any advice in this regard.
05. 05. Do you think it would be prudent for the government to push the digitization date in the four metros by another three months?
The math for all stakeholders comes down to what is the overall target to achieve vis-a-vis the seeding pace of the industry to reach that target. If that Math adds up then great, else the verdict would be to budget for greater time.
Only 59 per cent of digitization has been achieved in the four metro as per the first ever independent survey of the extent of digitization in the four metros was conducted by Television Street Maps for MxMIndia. This number is in sharp variance to the claim made by the Ministry of Information and Broadcasting that 87% of the four metro was digitized.
The figures for the four metros tell the story:
For Cable & DTH:
Mumbai: 86% (Govt: 99%)
Delhi: 45% (81%)
Kolkata: 53% (81%)
Chennai: 49% (85%)
The gap grows when you look at the achievement of digitization only in cable homes.
Mumbai: 62% (Govt: 99%)
Delhi: 34% (78%)
Kolkata: 35% (74%)
Chennai: 19% (60%)
On Tuesday, we made a clarion call to the mandarins of the Ministry of Information and Broadcasting urging them to put an end of this charade of make-believe numbers of digitization.
MxMIndia strongly believes that digitization is THE ONLY way in which the broadcast business can survive and thrive. For too long there has been much confusion amongst stakeholders. With half-baked regulations and guidelines, certain sections of the ecosystem were getting away with unethical practices.
India has been among the most happening markets in the global broadcast business. Most of the world’s media superpowers are here. What was needed was some order in the business. Which digitization was going to bring in this, as it happened internationally. Unfortunately, the government has appeared to have missed a trick in its attempt to execute this.
The Sunset Date for the switch from analogue to digital transmission in the four metros was first fixed as June 30, 2012. Then it was shifted at the last-minute to October 31. When this writer mentioned that even that date looks tough to achieve, there were many in the industry who said that the momentum will build eventually.
Although MxMIndia had been running a series starting 100 days to the June 30 deadline, we didn’t look at digitization in a big way until there 50 days left for November 1. But soon after interacting with all stakeholders, we figured that none of the numbers on the extent of digitization achieved that were being dished out could be believed.
Jaldi 5 with Joydip Kapadia: Data based on ground-level info + professional & expert assumptions
The government claimed an 87% achievement of digitization while the study conducted for MxMIndia by Television Street Maps showed this achievement to be only 59%. While this figure is for cable and DTH homes, that in cable homes alone is a low 38% as against the I&B ministry claim of 81%. MxMIndia spoke to Joydip Kapadia, Business Head, Television Street Maps on the issue:01. There is a huge variance between the TSM study figures of 59 per cent total digitization as against 87 per cent which the government is quoting. Why do you think do we have this huge difference between the two figures?
I wouldn’t be in a position to comment on the numbers quoted in other studies. After all, whether its the authorities or TSM or other third parties releasing info about the ground, we all have to resort to diverse methodologies and assumptions. Sometimes the estimates of individual studies could vary due to the underlying assumptions considered. These assumptions work at multiple levels – each or all of these assumptions levels could influence the end result. For instance, differences in defining the areas within the city, definition of Digital TV (including or excluding DTH), total cable homes in a city extrapolated from census and other sources – are just some of the places where assumptions taken upstream within the analysis could produce variations in numbers coming out downstream – at the end of the analysis. All I can say is that our data is based on information obtained from the ground overlaid with our professional and expert assumptions.
02. By your estimates how much do you see the 59 per cent grow to by October 31?
It’s difficult to predict given the scale of the initiative and the number of players and variable involved. I wouldn’t like to hazard a guess.
03. Would you see broadcasters lose out because of the delay (given more carriage fees, the delay in transparency, but then assured reach)
We have actually not looked at these aspects so I wouldn’t like to say anything on that.
04. Is there any one thing that you would like to see being done right if there’s a delay in the date and/or for the digitization for the rest of the country?
We are not direct stakeholders in this and cannot offer any advice in this regard.
05. 05. Do you think it would be prudent for the government to push the digitization date in the four metros by another three months?
The math for all stakeholders comes down to what is the overall target to achieve vis-a-vis the seeding pace of the industry to reach that target. If that Math adds up then great, else the verdict would be to budget for greater time.
It is then that we commissioned Television Street Maps (TSM), India’s largest and widest channel distribution monitoring service covering over 1500 headends across  675+ cities/towns, to conduct this study. TSM placement monitoring data is provided on a weekly basis to its clients who include names such as Indiacast, One Alliance, Viacom18, MSM, Star, UTV, etc. Besides providing distribution monitoring for analogue and digital for Class-1 towns, TSM has recently started providing distribution monitoring for LC1 towns as well as Digital Track, a system to analyse Digital offerings of MSOs and DTH companies.
Over the last two years, TSM has been tracking cable headends on a daily basis and reporting on a weekly level in almost a cable census style – covering every headend for the geographies it represents. While the data provided here are just the toplines we intend to provide detailed insights to our client on DAS. (see box: Jaldi 5 interview with TSM Business Head Joydip Kapadia: Data based on ground-level info + professional & expert assumptions ).
Methodology of Data Capture:
Over the last two years, TSM has been capturing TV channel distribution on a daily basis – the expanse of which is now a staggering 1500 headends across 675+ towns. This daily activity has been augmented since August 2012 for the four metros to capture the movement from analogue to digital at a more granular level. This augmentation/ expansion has been done using extensive ground intelligence and multiple verifications due to the criticality of the data. To ensure correctness of the data, more frequent scans were done in the last few days. The current release is for the ground situation as on October 23, 2012.
The ground info on Analogue versus Digital has been layered with metro universes data collated from census and other third party sources to ultimately validate and put together the digital penetration data for the 4 metros.
The sharp variance in the numbers as per the TSM survey and those put out by the government is reason for worry. But this is precisely what led MxMIndia to commissioning this study. No one really believes the numbers that are being put out by the government though MxMIndia, like other media, has been publishing these.
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MxM View
MxMIndia recommends that the government act in a mature way on the issue. While a delay will mean a loss of face, it’s better to schedule for a time when 100 percent digitization is truly achieved. At the time of writing, we’ve heard of rumours that the government may well announce a delay by two months. We would urge the government to not look at December 31 as the Sunset Date. There is a fair amount of special programming on television planned on that day and the government would be well advised to look at a date like January 31.
However, while doing so, it must get assurances from the governments in West Bengal and Tamil Nadu on compliance. The government must also meet all stakeholders to ensure that everyone is on the same page and is working towards the greater common good. It may be a good idea for it to appoint a full-time Officer on Special Duty for digitization. Either someone from its ranks, or pulled from the industry.
A note of caution: there is a general election coming up in 2014, possibly earlier. Elections have been lost due to grave national issues and teary ones like onion prices. If there’s any mess-up with digitization, the government can ill-afford a crisis where the masses won’t get to watch their favourite shows on telly. Then, the cry will surely be: alag chahiye!
It’s a well-deserved reward for a loyal Congress soldier. Lok Sabha member from Punjab, 45-year-old Manish Tewari, was appointed minister to head the vital Information and Broadcasting Ministry yesterday. Although ranked Minister of State, Mr Tewari gets independent charge.
He still needs to get the handover notes from predecessor and senior party colleague Ambika Soni, but he’s got some quick decisions to take on the digitization issue. Although his first response to the waiting media was that he would speak to all stakeholders as well as with Ms Soni, unless the High Court in Mumbai intervenes, he will need to take some quick decisions.
On the issue of curbs, Mr Tewari said “self-regulation is the best regulationâ€.
The relationship of the UPA-2 government and the media has been rocky with the government at the receiving end for its conduct. There have also been charges against the media for crossing its line and last week, Congress MP Naveen Jindal went public with allegations against editors of Zee News.
Earlier, Ms Soni resigned as the I&B minister in order to work for the party in the run-up to the 2014 general elections. While it’s not an uncommon practice for senior ministers to quit to mobilize the party machinery ahead of a general election, the decision was untimely as it came less than a week from when the most critical and gamechanging action of the government for the broadcast sector was to happen on November 1.
See:
Manish Tewari Lok Sabha member profile: http://mib.nic.in/ShowContentOne.aspx?id=1&Section=7
On Friday evening, the Ministry of Information and Broadcasting of the Government of India issued a statement defending the digitization numbers it has put out. The MIB contests the study published by Television Street Maps (TSM) and MxMIndia.com.
While we are happy to note that the ministry has carefully studied our data, we – TSM and MxMIndia – stand by the data published.
We will happy to cooperate with the Government and/or the TRAI if it wishes to see any clarifications. These can be addressed to editor@mxmindia.com and we will revert soonest.
We wish to reiterate that we are eager to see digitization happen. MxMIndia commissioned TSM to conduct the study only because it was felt that the data being put out by the MIB was not reflecting the true on-ground situation.
We understand the ministry too has undertaken its own study of the market. Records at the MSO headends, sms activations etc have been looked into.
We now have a new I&B minister in Manish Tewari. It’s a big day for him today – October 29. His first working day as the minister. There is a taskforce meeting scheduled for today. And there’s a Mumbai High Court hearing coming up on the delay in digitization.
Loads happening. We’ll bring you all the news and analyses.
The Indian M&E industry, with revenues of about 805 billion INR (17.2 billion USD) in 2011, is set to grow robustly over the next few years on the back of steady macro-economic growth, rising spending power and positive demographic indicators. The industry revenues are expected to reach 1,764 billion INR (37.6 billion USD) by 2016, with a CAGR of about 17% from 2012 to 2016, according to India Entertainment and Media Outlook 2012.
According to the study, which was released by CII and PwC during the Media and Entertainment Summit 2012, the television and print segments continue to be the largest contributors to the industry, accounting for 66% of the total revenue. Internet access contributed 14%, up from 11% in 2010. However, the contribution from the print and film segments have reduced marginally, as year-on-year growth rates have been lower than the industry average. The internet access and gaming segments have been the fastest growing, with annual growth rates of 57% and 33%, respectively
The report further lists that the Indian E&M industry has been one of the fastest growing, followed by countries such as China, Russia and Brazil. Going forward, the industry is expected to grow at a CAGR of 17% between 2012 and 2016, to reach a size of 1,764 billion INR. Internet access, advertising and gaming are projected to be the fastest growing avenues, each growing at a CAGR higher than 20%. The revenue from advertising is expected to grow at a CAGR of 13.4% to reach INR 525 billion in 2016, significantly up from INR 279 billion in 2011.
The television segment is expected to retain its position as the largest E&M segment in the country, with an estimated CAGR of 15% till 2016. Given the high penetration of mobile internet in the country, robust growth has been projected in internet access till 2016 (given the current under-penetration), which will overtake the print sector by 2013, in terms of industry revenues, and become the second-largest segment in the Indian E&M industry. The print segment is expected to grow at 9% for the next five years, and claim 17% of market share by 2017.
The report recommends that given the high potential growth, the industry should focus on collaboration and innovation to achieve the target numbers.
So you thought the fancy 165-cm Sony Bravia would look fantastic on the bare wall of your living room. Now, where you are going to keep the set-top box? Pain, huh?
#2 Other paraphernalia for the box:
Like a sexy little cover for the box so that dust doesn’t settle on it when not in use. Buy an all-in-one remote and if necessary get an additional remote laminated. Build an electricity point for the set-top box.
#3 Keep tabs on packages:
Until now it was the cable operator who decided what you saw. Well, kinda. But now with several packages, and a variety of new channels coming on board, get ready to be picking and changing channels and/or packages.
#4 One more monthly payment to be made
If your existing arrangement with the cablewallah allowed you to pay just once a year, now you may want to make it a monthly cycle, until you’ve decided what package to take.
#5 More money
Set-top boxes for all the help/assistants at home, office, the driver… and the building sweeper and watchman. Guess one of the suggestions that someone should’ve made to the government that is that investments in buying set-top boxes will get you tax exemption. This could be sizeable given the number of boxes you’ll be buying in the immediate future.
Okay, there are the hiccups. The plea to push digitization in Chennai was successful with the Court extending the date to November 5. In Mumbai, the plea was rejected even as local cable operators are gathering in the afternoon to decide on the next course of action. They may even go in for an appeal to the Supreme Court.
What the stakeholder body bosses say:
Man Jit singh
Man Jit Singh, President IBF and CEO, Multi Screen Media
This has been the biggest step in the broadcast industry. Not only is digitization good for broadcasters as it will bring subscription revenues in line but will also enable us to launch new channels, the carriage fees will be lower; but it is also good for consumers. This is the chance for consumers to get different content, it is also a chance for them to get broadband connectivity, which will bring a great information revolution. It is great for MSOs as they will get fair revenues from customers after having invested in the boxes. FDI is allowed too, so the MSOs can look for investments. For LCOs, ARPUs will go up when they offer services like cable modems and broadband connectivity. Government will get more taxes. It is going to be a fantastic phase.
Arvind Sharma
Arvind Sharma, President AAAI and ASCI and chairman and CEO of India subcontinent, Leo Burnett
Digitiation will be a big leap for everybody involved, either as an advertiser, as a businessman, as an agency. So all of the stakeholders are looking at the day with the hope that all will go well.
Roop Sharma
Roop Sharma, President, Cable Operators Federation of India
We all were waiting for digitization. But i have mixed feelings for the day. We have not been able to deliver what we had promised the consumer. There is no transparency, the electronic bill system is not in place, and moreover, the required number of boxes have not been seeded. What can one say? Chennai has extended the deadline. Mumbai will now be moving to Supreme Court for the extension of deadline.
In Kolkata, the opposition is kind-of state-sponsored with Chief Minister Mamata Banerjee objecting to the mandatory digitization and the impact it has on the poorest of poor.
In Delhi, there were some objections raised, but they appeared to have fallen on deaf ears.
The result: mandatory digitization in three metros is here. And at long last there is going to be some order in the broadcast business. One is not very sure whether those who are very elated about the move will be so in future. Because transparency comes with its own set of problems. Especially for those who have been used to the inefficiencies for far too long.
See also: Shailesh Kapoor/TV Trail: Channel Brand: The Digitization RealityThe Anchor: 5 problems and that you and I will face thanks to digitization
So, who gains and who loses by the digitization:
Consumers: Will they gain? Yes and No. It’s great for those who can afford it, but for the lowest common denominator already burdened with rising salaries and falling incomes, it’s going to pinch.
Broadcasters: Content-makers will now get the money they ought to get as they will know how many people are subscribed to their channel, but no longer will they be able to give the spiel of millions of viewers watching their channel without the relevant proof. Â They will save some of the carriage fees paid to Multiple System Operators (MSOs)
MSOs: Monies coming from carriage fees will take a beating, though it won’t vanish entirely as some revenues from placement etc can be made. Their incomes could rise with better reporting from the local cable operators.
LCOs: While quality of content will mean greater number subscriptions to niche channels and hence more commissions, the overall revenues will reduce as the set-top boxes will mean zero unaccounted connections (unless of course there’s pilferage)
Distribution Bouquets: MediaPro with Star and Zee channels in its fold will be the biggest gainer as will be IndiaCast with the Network18 and allied group channels. However, others smaller group but with key channels like, say, Times Now could also flex their muscles.
Advertisers and Media Agencies: They will now have a better idea of the reach and may be able to negotiate harder, but there may be a few hiccups
Hiccups there will be for all. The next few months – possibly till end-December – will see a state of uncertainty for stakeholders. The fight for mandatory digitization may have been won, but the battle has just begun.
It’s the day of reckoning for the Indian media sector as mandatory digitization is scheduled to happen in the four metros of Chennai, Kolkata, Mumbai and New Delhi. While there are various stakeholders, the role of the local cable operators (LCOs) is most critical for the move to be successful. Over the last few weeks, LCOs have been exceedingly vocal on the problems with digitization move. MxMIndia spoke to Roop Sharma, founder and president of the Cable Operators Federation of India on the morning of October 31…
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01.  So the sun is finally going to set on analogue transmission in the four metros today?
Yes, this is what looks like considering the attitude of the government.
Don’t you think some teething troubles would exist even if there was 100% set-top box installation?
Firstly, everyone including the Ministry knows that seeding of STBs is not 100%. So many consumers would be having a dark day if analogue is switched off tonight. Secondly, consumer choice has not been asked and fed into the SMS systems of the MSOs. Ministry press release says that this would be done in the next 15 days. I doubt if that is possible to collect and feed the data of about 10 million subs in such a situation. Any way, the Ministry’s job will finish after they give another release patting their own back for a good job done. It damn cares for what the consumers go through. I expect a chaotic situation for another two to three months when people come to terms with what has happened.
Do you still have reservations about whether it will work?
I have never suspected working of the technology and always favoured digitalisatioin. However, I do suspect the intention of the government behind the whole exercise. It appears that it is being pressurized by some external force otherwise government would have remembered its social, economical and political responsibility while implementing a new technology, forcing down the throat of the masses in the name of doing good.
You check the experience in rest of the world. No government has ever mandated digitization in a private cable TV industry anywhere in the world. In the US, Europe, South Africa, Australia and in many other countries, they digitalized terrestrial television services given free to the masses because it frees lot of spectrum that can be used for new telecom services. While doing this, they ensured that till the last customer is given a digital STB, no analog switch off takes place. Not only this, they offered free STBs to millions or gave a subsidy to buy an STB for each TV set.
India is not so rich. It could have let analogue exist for the poor masses or provided an alternative, digitizing the free terrestrial services of Doordarshan for them. Don’t forget it is cable TV that made a information and knowledge based society in India and not mobile communications. Real globalisation started with cable TV revolution in India in early nineties.
02.  If the government turns a blind eye to data pilferage to non-digitised subscribers for a few months, LCOs and MSOs should not have any problems?
Let’s not talk about pilferage of data. Even in the US there is 15% accepted piracy. Has the government stopped pilferage of food grains from its godowns, tax avoidance or corruption in the big industries and politics? However, government should have ensured that every existing customer is enabled to receive digital service and afford the service. Ministry is working like Gestapo as if it is a question of life and death for the nation.
03.  If LCOs don’t get proactive, you’ll lose customers to DTH, as there are some attractive schemes on offer?
No, this cannot happen. Don’t forget that DTH existed since 2003 in India. If the service was affordable and so good, cable TV would have lost all its connections to it. This has not happened in the last eight years. It will not happen now also. DTH gains are only in cable dark areas or far flung isolated areas. This is the main reason that Ministry is so proactive in making Cable TV more costly than DTH so that consumers are forced to shift to DTH.
For your information, there is no transparency on DTH in spite of it being a fully digital service. All their content deals are done not based on the actual consumer consumption but lump some deals. Consumers do not get their choice. To get your choice on DTH, you shell out not less than Rs 400 per month. Government is befooling the masses to help a few large media groups who enjoy monopolies in the media markets through their numerous TV channels, This was very evident from the ads given by the government, broadcasters and DTH companies on TV and print media. They had a threatening and scary tone to terrorise the consumers rather than convince them. Otherwise, why should the ads tell the cable TV subscribers to approach DTH operators when the law is made to digitalise cable TV.
If you ask me, this law will prove a death knell for all small players, both cable operators and broadcasters.
04.  Is there fair clarity on the subscription pack tariff and how much LCOs will earn in the new regime?
No, there is no clarity so far. Many popular channels are missing from packages offered as well as a-la-carte offerings. Consumers are clueless till now.
05.  As owners of the all-important last mile, your role in this gamechanging move is critical. But there are many who think that cable operators have suddenly started creating obstacles to delay digitization. Why this sudden reluctance?
We appraised the government what is the true situation on the ground. However, since that was against their mindset, they started ignoring us. In fact, they started having separate meetings with broadcasters and MSOs where cable operators were not made to participate.
Your critics say that LCOs have realized that their income is going to take a beating… legimately with margins and because digital transmission will require reporting correct subscriber numbers
It is not a question of dwindling income, what is disturbing to the cable operators is that government has made a law to force LCOs to hand over their years old family business to the big media houses.
It’s a week since Manish Tewari took charge as I&B Minister… just two days before the sunset date of Phase I of digitization. The foremost challenge he faces is overseeing and implementing the digitization process. While the digitization numbers as posted by the MIB look impressive, it remains to be seen if the challenging ground realities are met. Another task at hand would be to let the broadcast industry flourish.
MxMIndia spoke to industry captains about their expectations from the new I&B Minister.
Ravi Dhariwal
Ravi Dhariwal, CEO – Publishing, BCCL
I just wish that the new minister on board would help media industry in India grow and become more relevant – whether it is print or television. The minister should create an enabling environment where we, as a media fraternity, can serve the country in best traditions.
Man Jit Singh, President, Indian Broadcasting Foundation and CEO, Multi Screen Media
Man Jit Singh
I have a three-pronged expectation list from the minister. I believe he has the same priorities as us when it comes to the process of digitization. We hope that the digitization process is smooth and continuous for him. And the second phase is also rolled out soon. I expect the new minister to support us in making sure there are no pirated signals or disruptive systems.
The new I&B minister, as we know, supports self-regulation. As broadcasters, we believe self-regulation, and we look for his continuous support.
The last and the most important thing is the issue of Price Control that was put in place in 2003. There was meant to be a sunset date for the price control, which has not happened till date. It has been too long that broadcasters have been following it. Now, it is the time that market forces decide the price.
KVL Narayan Rao, President, News Broadcasters Association and Executive Vice-Chairman, NDTV Group
KVL Narayan Rao
I would not go so far as to call it expectation but a belief that he will continue to take forward the good policies that previous I&B minister, Ms Ambika Soni, had initiated. There are three things that Mr Manish Tewari should aim at: digitization being the first one. He should uphold the price for carriage fees and support self-regulation. He should support the industry from the perspective of unreasonable levels of taxation – whether it is direct or indirect service tax. We hope that the next Bill that he presents talks about these issues.
Mr Tewari is a democrat, and will probably look at the whole picture and then make decisions.
Ashok Mansukhani
Ashok Mansukhani, President, MSO Alliance
Basically, three things: the first thing – the first phase of digitization needs his personal interest to stabilize it. It requires political direction to put it on the right path, especially since the process of digitization has to happen through state governments. I don’t think the minister should leave it to bureaucracy alone.
The second thing is that the second phase of digitization is too near the first stage, which is March. And, I think, at this moment it is a mirage to think that we can achieve that target on 31st March because the stabilization of the first phase of digitization is not dependent on a press note. It is the dependent on the acceptance of digitization by the consumer. Now the consumer is at least a month away from understanding what digitization means, what it will cost him and what the benefits are. This is a learning process and the process will take some time, and therefore, I think phase two – even though everyone will say it is non-negotiable – in my view, it will have to be pushed back by six months.
The third step is that Mr Manish Tewari needs to very carefully look at the fact that you cannot regulate a multimedia delivery that India has in the form of cable, DTH, mobile TV and IPTV through the Cable Act. The Cable Act is fine as far as cable is concerned. We need to work towards an Electronic Media Management Act. Basically, this Act would function on the basis of self-regulation but which has a safety net of autonomous public authority that Supreme Court asked in 1992 for the Cricket Judgement in which SC had said that airwaves are neither private property nor government property but it is public property. And public property is best protected by an autonomous authority. In 1992, only cable and broadcasters were present but in 2012 you have four technologies and who knows if fifth one will come through 4G.
The way I would like to see it that the last thing the Minister needs to do is that everybody somehow managed to do Phase I of digitization without getting any incentive from the government. But I think that what happened in the last week or first 10 days to the run up to sunset date was the sudden realisation that the much-beloved Census figures itself showed that 50% of people in India are poor. If that is so and in any case MSOs were giving a subsidy of nearly Rs 1000, Rs 500 is also proving too much for this really poor class. Someway has to be found to lower the burden on slum areas as much as possible. And one way to do it is what TRAI had wanted to do in 2010, which is to say that if you are a digital infrastructure provider, you will be treated on equal footing as other infrastructure providers and given a tax holiday for seven years so that whatever you invest now, you are able to then recover it in form of low taxes over the next seven years. Also, there has to be some form of set top subsidy scheme, which is not just borne by cable but is also borne by broadcasters in form of lower prices and government in the form of duty reduction.
If digitization be his main objective, then apart from that he has to ensure that everybody is kept on a level-playing field. He made some statements in the beginning about it but he is silent in the last four days. So, I think that I am really looking for is more sane and more stable approach to digitization and a level-playing field, which is technology-proof for the future.
Roop Sharma
Roop Sharma, President, Cable Operators Federation of India
We expect him to treat all stakeholders in the digitization process equally. He should understand the realities. The new minister should work in tandem with the ground realities of digitization. Mr Manish Tewari should listen to all stakeholders, and take into consideration the problem and hiccups that each state and stakeholder is undergoing in this process.
May be the name doesn’t ring a bell when you read this but before the day is over, it is reasonably certain you will know Nilam. For instance, you will know Nilam isn’t a ‘Who’ but a ‘What’. Nilam is the cyclonic storm brewing off the coast of Tamil Nadu and Andhra Pradesh that is expected to cross the coast later today.
This morning, I did a quick scan of the major Hindi and English channels to see what they were covering as lead stories on their 6 o’clock bulletins. Barring DD News, either they were on a non-network slot (think Slim Swift, Baba AvtarParmatma, Arthro Go or something similar) or, more ironically, Hurricane Sandy. While it is hard to debate the significance of Sandy given that it has impacted the crucial Eastern Seaboard of the world’s sole superpower and an area of interest to many Indians given that they have friends and relatives residing there, it seems like terrible editing if the terror lurking in our own neighbourhood is ignored in so cavalier a fashion.
Here is why Sandy is, in a ghoulish way, a better story to run than Nilam. Dramatic footage of capsized yachts lying on highways, Manhattan’s Times Square under knee deep water, uprooted trees against the backdrop of the White House and the Capitol: racy stuff compared to the Indian Meteorology Department’s satellite imagery of a grey blotch on a grey background that is Cyclonic Storm Nilam.
Our television news genre has an unfortunate reputation for tabloid and sleaze. Perhaps, news is the only genre where the (older) audience actually remembers the days of Luku Sanyal, Dolly Thakore and Preet K. S. Bedi with a wistful air. When news was delivered in measured tones, not harangue and cacophony. We also remember, with much warmth, the arrival of TWTW*, a path-breaking discontinuity that brought colourful, exciting images from around the world to our generally drab screens. A kinder, gentler era.
After the genre started getting private participation with the advent of satellite TV, a few things changed for the better. For one, the Government, and by implication, the party or coalition in power was no longer seen exclusively through a hagiographic lens and was routinely subject to searching questions and even scathing criticism. For another, stories were better edited with anchoring and on-site reportage alternating on the screen to keep the audience interested. Finally, the typical story duration was shorter and pithier, avoiding prolix rambling that often characterized the Sarkari predecessor’s presentation. Channels were few but were fronted by editors and anchors of distinction and authority.
Unfortunately, the idyllic period was also ephemeral. It wasn’t long before an assortment of unsavoury arrivistes with bags of money and dubious agendas saw the endless opportunities that the genre presented. All it needed was a licence from the Ministry and a transponder on a satellite and you could be well on your way. Threat, extortion, blackmail- it was suddenly possible to turn all manner of villainy into a broadcast business.
The swelling ranks of participants in the news genre revealed a fault line – on one side were the serious players with long-term interests in delivering honest and fair journalism to the consumer, on the other, the cads and bounders with nary a scruple. A slide began that continues, and even accelerates unto this day.
The analog cable plant had serious capacity constraints. A typical headend would offer a 550 MHz capacity with room for barely 50 channels. It was only a matter of time before platform operators discovered the lucrative, carriage fee opportunity. Most news channels were free-to-air and only earned advertising revenue. This could only be secured if the ratings and distribution reports picked them up. Clearly, ratings could only come if basic availability had first been ensured. In droves, then, news channels became willing victims of the menace.
If carriage fee was not a nightmare enough, TRAI’s ever growing laundry list of regulations seemed designed exclusively to injunct broadcasters in ever more onerous ways even as platform operators were at almost complete liberty to run amok. The television news business model was under mortal attack.
What could it do but pull out all stops as it battled back from the corner? The rapid rise of tabloid sensationalism and unglorified sleaze should, in this context, be read as more something to be pitied than censured.
Why is it that we seem to be in a news cul–de–sac while more developed countries produce a wide range of high quality news outlets?
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I have, even before this, suggested examining the Ofcom’s ‘Fit and Proper’ test as a model for examining whether a particular entity should be permitted to receive, or continue to bear, a broadcast licence in the news genre. I am not suggesting the establishment of a government regulator for broadcast. A ‘Fit and Proper’ test for India can and should correctly be developed and administered by the News Broadcasters’ Association (NBA) in cooperation with the News Broadcasting Standards Authority (NBSA). The government’s licensing bodies should work with NBA and NBSA in ensuring that every new aspirant is subjected to the test and even legacy broadcasters are subject to a re-evaluation at specified intervals.
In the meanwhile, midnight tonight will herald a very special dawn for India’s television industry- the arrival of mandatory digitisation in Delhi, Mumbai, Kolkata and Chennai. It is possible that the government may yet develop cold feet at the penultimate moment but that will only postpone, not cancel, the inevitable. This watershed is very good news indeed for the news genre. Once the cable plant goes from deficient to surplus capacity and passive viewers transform into active, demanding consumers, the single biggest cost challenge to the genre will begin to abate. Hopefully, we will enter an era when choice and not compulsion will decide what is watched and the ball will be squarely back in the news producers’ and editors’ courts.
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Paritosh Joshi has been a marketer, a mediaperson and a key officebearer on industry bodies. He is developing an independent media advisory practice. He can reached via his Twitter handle @paritoshZero
Phase I of digitization has been a challenged ride. Even as MIB believes that as on November 5, 2012, 22.4 lakh Set Top Boxes (STBs) were installed in Mumbai, 25.15 lakh in Delhi, and 17.74 lakh STBs in Kolkata; analogue signals still continue to beam in the four cities. The Chennai matter is sub-judice in the Madras High Court. To top it all off, the sunset date for the second phase has already been announced. It is no doubt that 100 percent digitisation of the four metros is still a huge task.
Anita Nayyar
Anita Nayyar, CEO, Havas Media, India & South Asia said, “The current state will carry on over the next eight weeks until stabilization sets in and state government and consumers realize it’s here to stay. The change to digital, now or later is eminent in waves if not crests and troughs. Hundred percent digitization across India will certainly take much longer and there will be many more extension dates.” Raj Datta, Senior GM, MPG-Kolkata also opined that reaching 100 percent digitization in Kolkata will take close to three months.
Raj Datta
While the broadcasters are happy with the numbers, since it will give them additional revenues and save them the carriage fee, the advertisers are still apprehensive. The cost of set-top box (STB) and infrastructure are the primary concerns of the industry. The suspension of TAM data, simultaneous beaming of analogue and digital signals is only adding to the confusion during the festive season. Mona Jain, CEO, Vivaki Exchange opined that the advertisers are wary of the fact that visibility will drop due to the transition. She said, “For the advertising fraternity, the festive season is the key period for them. Due to transition to STBs and digital signals, there are going to be shortfall and shifting in terms of visibility. This is a big concern for them. They are not able to predict the shifts in their current plan and that is an issue.”
Mona Jain
Kolkata has been grappling with low transition numbers. While Mr Datta predicts that digitisation might shoot up due to the impeding cricket season, he is quick to point out, “We do not know what the numbers will show because TAM data has been suspended and will be available only after December 15. Anything and everything is an estimate. It remains to be seen how channel scenario will change. I am guessing that the viewership of niche channels such as History, Nat Geo might shoot up. Post digitization, illegal connections will also drastically drop, also because they will have to shell out money and take a connection. Thus, I feel that the whole scenario will change towards what SEC A likes.” He also said that the sampling of SEC A, B has also increased and this might result in shift of advertisers’ money.
“Advertisers as rule will have to adopt a more segmented and targeted approach sub-slicing their segments. With access to more channels, viewership by TG, will get spread, people will experiment and consume more even if it is not focused consumption and this will happen across genres. Marketers and advertisers if they want immediate results will be looking at incremental spend than earlier budgeted as they will have the option to follow the spread,” opined Ms Nayyar, adding, “Underreporting of C&S households has been an issue and resulted in loss to the exchequer. Further there is the deferring of the TAM data which clients are used to even though digitization will allow more refined information, but while this is already being done it will take a while to become a norm.”
She also said that advertising will increasingly get localised and spill over to local print and radio in the long run.
According to Mr Datta, advertisers are apprehensive about believing the historical data and the current situation. “As a media agency, we have to depend on historical TAM data that we have till October 7, but we do not know if it is giving the correct picture. But we do feel that overall viewership might drop because of digitisation. These issues are coming up repeatedly since we work with cost effective measure called CPRP, and broadcasters are a little apprehensive. It is a complete wait-and-watch kind of scenario. Something definite is quite difficult to predict,” he said.
While the planners and buyers feel the broadcasters are co-operating, it remains to be seen who emerges unscathed in the digitization fracas.
It will be a month of mandatory digitization in the three metros of Mumbai, Delhi and Kolkata. MxMIndia spoke to Joydip Kapadia, Business Head, Television Street Maps on the progress made so far
01. According to Television Street Maps estimates, how much digitization has actually been achieved in Mumbai, Delhi and Kolkata?
We cannot comment on the exact numbers as there is too much of flux in these markets between DAS, DTH, Analogue. Hence, we would prefer to give a range estimate as follows: Mumbai and Delhi together are tending towards the 95% mark. Kolkata is trailing with less than 80%.
02. Evidently, a lot of the process is work in progress… how many of the set-top boxes have been installed in the month of November alone?
Yes. The pace of seeding has been pretty impressive with just under 35 lakh boxes seeded in November. Delhi leads the pack with more than 15 lakhs seedings. Followed by Kolkata with more than 12 lakh boxes. Mumbai was earlier seeded well and has added another 4.5 lakhs boxes in November.
03. Do you see many switchovers from cable to DTH given the confusion?
In the early part of 2012, we had seen a far greater enthusiasm with DTH expecting a large gain from cable. In a few cases, that expectation was as high as 30% of the total analog base within these metros would switch to DTH. However, the reality has been a little different. Cable has not lost as many homes as many on the DTH side had expected.
04. How has the roll-out of Channel Packs been by the cable MSOs?
While all major players have now introduced their packs, we have a few observations:-
1. The packs have been rolled out – but not so much to end consumers. Cable Pack sales in the truest sense, in our estimate, is still 8-9 months away.
2. There are fewer packs per cable operator vis-a-vis their DTH counterparts. This is bound to increase in days to come.
3. The first approach seems to be National packs even for operators who are expected eventually to move to Regional/ Local packs.
4. The systems at the MSO end are still not fully/ seamlessly integrated. Hence we are finding strange discrepancies of channels available on packs even when those are not being relayed by the MSO’s headend. We expect some of these teething issues to be ironed out in days to come.
05. Any broad lessons as we embark on Phase 2 of digitization?
a. The two back-to-back deadlines for Mumbai-Delhi-Kolkata could be avoided in the second phase. If individual MSOs/ Cable operators are known to expedite box seeding closer to the deadline, we need a more effective push for all key players to start seeding in time rather than at the 11th hour.
b. DTH cannot assume that it will gain automatically due to the flux. They cannot assume that just heavy advertising and price promos will do the trick. Extensive ground efforts/ initiatives will be needed.
c. The seduction and mating rituals between distributor companies and MSOs should start much in advance. Waiting for the last minute will only mean signal disruption to consumers.
d. Distributor Companies would have to insist on getting subscriber visibility from the SMS of Regional Operators within the 38 cities as part of their deals. Succumbing to quick wins of minimum guarantee/ fixed deals would again put broadcasters in the same spot where their fortunes remain disconnected from number of subscribers.
The government claimed an 87% achievement of digitization while the study conducted for MxMIndia by Television Street Maps showed this achievement to be only 59%. While this figure is for cable and DTH homes, that in cable homes alone is a low 38% as against the I&B ministry claim of 81%. MxMIndia spoke to Joydip Kapadia, Business Head, Television Street Maps on the issue:
On Friday evening, the Ministry of Information and Broadcasting of the Government of India issued a statement defending the digitization numbers it has put out. The MIB contests the study published by Television Street Maps (TSM) and MxMIndia.com.
By Paritosh Joshi
