While a delay in cable television digitisation spells losses for broadcasters, if it results in a drop in the price of set top boxes, which could happen due to inventory pile-up, then the digital platform will be a success from day one
Everyone has heard of the expression ‘killing two birds with one stone’ and also ‘two for the price of one’. The expressions have always been relevant in the world of business. The broadcast industry was certainly aware of the true meaning of these two expressions when they were lobbying to get the digitisation legislation off the ground.
All was set for July 1, 2012 – the date when India would have started moving to a more transparent (not necessarily ‘cleaner’) broadcasting (telecasting) business. Everyone hoped to benefit from the switch to a digital platform. But, as it is in nature and elsewhere, when someone gains, it is at the cost of someone else who is in danger of losing something!
The two steps forward was the Cable Television Networks (Regulation) Amendment Bill of 2011,which promulgated moving all analogue broadcasting to digital in the four metro cities with effect from July 1, 2012. The next target was to cover cities with a population of over 1 million. The ambitious plan was to cover the entire country by the end of 2014. The Bill’s ‘sunset clause’ stipulated the total switch-off of analogue signals. This would have meant that an estimated 88 million households would have moved to digital platforms. In addition to the check on leakages in revenue to the broadcasters as well as the government, the switchover has the potential to change the landscape of the entire industry. The result would be a cleaner way of doing business and fixing accountability. The legislation also seeks to monitor the broadcasters themselves.
One of the big gains of the digital platform is in the form of a scientific compilation of the TRPs (television rating points), the three letters that are put on a high pedestal by all in the entertainment and broadcasting world. The content provider, the broadcaster, the viewer, the advertising industry and even the regulator — all have to deal with these three letters in their day-to-day activities.
Typically, the move to digitisation has been resisted by cable operators and smaller multi-system operators (MSOs). The leeway they had to play with subscription numbers would be a thing of the past with set top boxes (STBs) reaching the homes of the viewers. Close to the deadline, came the predictable excuse — shortage of STBs and delay in procuring requisite equipment — thus pushing the deadline to November 1, 2012. The cable industry uses all types of management techniques, something B-schools may want to spend some time in researching for their case studies!
A delay in the switchover date spells losses for broadcasters and all those concerned who were gearing up for the launch on July 1. Their rollout programme now needs a re-look and has to be reconfigured to take in the new date. There could be inventory pile-up of STBs and related equipment and last-mile cable operators may continue to report suppressed number of connections! Some estimates put the under-reporting to be in the region of 20%, but it could be anyone’s guess and depends on city-to-city and street-to-street (virtually)! This push-back is the one step back.
Whether November 1, 2012 will be the final date of the switchover is again anyone’s guess. We have a history of pushing back dates for various reasons and this could be no exception.
Finally, in India, price decides everything. If the delay in implementing the platform results in reduction in the cost of STBs, which could happen as a result of inventory pile-up, then the digital platform will be a success on the day of its launch. If the industry gets its pricing wrong, then the evils that plague any consumer industry, on account of high cost to consumer, will affect this industry too. However, due to the delay in its launch, we will have to wait and watch if these additional months will result in the industry and regulators killing more than two birds with one stone or they will require a few more additional months to prepare the stone itself for the launch..!
The Financial Express
Everyone has heard of the expression ‘killing two birds with one stone’ and also ‘two for the price of one’. The expressions have always been relevant in the world of business. The broadcast industry was certainly aware of the true meaning of these two expressions when they were lobbying to get the digitisation legislation off the ground.
All was set for July 1, 2012 – the date when India would have started moving to a more transparent (not necessarily ‘cleaner’) broadcasting (telecasting) business. Everyone hoped to benefit from the switch to a digital platform. But, as it is in nature and elsewhere, when someone gains, it is at the cost of someone else who is in danger of losing something!
The two steps forward was the Cable Television Networks (Regulation) Amendment Bill of 2011,which promulgated moving all analogue broadcasting to digital in the four metro cities with effect from July 1, 2012. The next target was to cover cities with a population of over 1 million. The ambitious plan was to cover the entire country by the end of 2014. The Bill’s ‘sunset clause’ stipulated the total switch-off of analogue signals. This would have meant that an estimated 88 million households would have moved to digital platforms. In addition to the check on leakages in revenue to the broadcasters as well as the government, the switchover has the potential to change the landscape of the entire industry. The result would be a cleaner way of doing business and fixing accountability. The legislation also seeks to monitor the broadcasters themselves.
One of the big gains of the digital platform is in the form of a scientific compilation of the TRPs (television rating points), the three letters that are put on a high pedestal by all in the entertainment and broadcasting world. The content provider, the broadcaster, the viewer, the advertising industry and even the regulator — all have to deal with these three letters in their day-to-day activities.
The number of users of the DTH platform is around 46 million. If transmission over cable also went digital, then the obvious advantages would be phenomenal.
Typically, the move to digitisation has been resisted by cable operators and smaller multi-system operators (MSOs). The leeway they had to play with subscription numbers would be a thing of the past with set top boxes (STBs) reaching the homes of the viewers. Close to the deadline, came the predictable excuse — shortage of STBs and delay in procuring requisite equipment — thus pushing the deadline to November 1, 2012. The cable industry uses all types of management techniques, something B-schools may want to spend some time in researching for their case studies!
A delay in the switchover date spells losses for broadcasters and all those concerned who were gearing up for the launch on July 1. Their rollout programme now needs a re-look and has to be reconfigured to take in the new date. There could be inventory pile-up of STBs and related equipment and last-mile cable operators may continue to report suppressed number of connections! Some estimates put the under-reporting to be in the region of 20%, but it could be anyone’s guess and depends on city-to-city and street-to-street (virtually)! This push-back is the one step back.
Whether November 1, 2012 will be the final date of the switchover is again anyone’s guess. We have a history of pushing back dates for various reasons and this could be no exception.
The scenario will be similar to that of mobile handsets. We all used the bulky handset which had an antenna sticking out of it a few years ago and now are used to a product which has to be a ‘smart’ phone. Similarly, the high quality of digital transmission will be the standard and it may happen that the hardware will have to keep pace with the changing transmission technology.
Finally, in India, price decides everything. If the delay in implementing the platform results in reduction in the cost of STBs, which could happen as a result of inventory pile-up, then the digital platform will be a success on the day of its launch. If the industry gets its pricing wrong, then the evils that plague any consumer industry, on account of high cost to consumer, will affect this industry too. However, due to the delay in its launch, we will have to wait and watch if these additional months will result in the industry and regulators killing more than two birds with one stone or they will require a few more additional months to prepare the stone itself for the launch..!
The Financial Express