Tony D’silva, who resigned as the chief executive officer of Sun group after a five-year stint, said in an interview that satellite television service providers will have to offer more local channels to be successful. In 2007, D’silva joined as the chief operating officer of Sun Direct, the satellite TV distribution arm of Sun TV Network Ltd, and later rose to become chief executive officer. He was subsequently elevated to Sun group CEO. D’silva had earlier worked with Star India as its distribution head, headed Zee Network’s international operations and was the CEO of Modi Entertainment Network.
Sun group is a media conglomerate with interests in broadcasting, cable, direct-to-home, radio, newspapers, magazines, production and distribution of movies. Edited excerpts:
Why are you leaving Sun group?
I would have loved to stay but I am getting a bit homesick. Over the last five years I have been travelling to Mumbai on Friday evening and back in Chennai on Monday morning, I’m missing my family. I am 62 years old, life is short and I would like to visit countries at leisure unlike on business trips when you’re crunched for time.
What is Sun TV Network doing about the fall in market share?
I would not say it has lost market share. It is a temporary phenomenon due to political conditions. With the conclusion of negotiation with Arasu cable, you will see an improvement in market share.
How is it to work with Kalanithi Maran, the promoter Sun TV Network, compared with your experience at other media houses?
He is extremely understanding and supportive, gives you complete freedom in conceiving and executing business strategies. He has tremendous insight on consumer behaviour and 99% of the time he is right. He is a fast decision-maker.
What are your accomplishment at Sun group?
Sun Direct is different from other Sun group companies, a new business of the group run professionally from its inception. My focus in the DTH (direct-to-home) business was to cater to the needs of the masses, identify critically the 70-80% most viewed channels by the south Indian population or the rest of India. You may have 300 channels and at the end of day, a customer watches only 15-20 channels.
There is a tremendous DTH potential in all states but players should select markets like what we have done for the south and plan for the future. Otherwise your churn only will increase (customers will move out if they are not given the channels they want to watch).
It was a home-grown business. Since I was an outsider, I was able to give it a different perspective and fine-tuning in terms of process, procedures and systems across to other group companies.
How do you see the implementation of digitization in the country?
India is a vast country. In the last two or three years, the number of regional channels launched is phenomenal, be it Andhra Pradesh, Gujarat, Maharashtra or Tamil Nadu. These channels have become popular for a section of the population and has become a must carry for cable operators. However, the problem is that there is a large number of local cable channels and there is a capacity constraint on the DTH platform, how do you bridge the gap. The success of DTH player will be whether you have the capacity to be able to provide the content for the local market that is the key.
What are the challenges that you faced in digitization?
Digitization is an act of Parliament whereas law and order is a state subject. Come November, suppose 50-60% of the population buys boxes while the remaining 40% population does not, what happens? There is a lot of uncertainty. Will the government go ahead with the digitization deadline?
Unless critical issues are sorted out, there is no point in saying digitization is great for the country. I do think so but let’s be realistic. Unless some of these practical issues are addressed sensibly that everybody in the game puts his foot forward and makes it happen. It is very important that the first phase is done properly and successfully, then the other rollout in other parts of the country will be smooth.
How do you see the future of DTH with digitization?
It is important that the government comes out with a FDI (foreign direct investment) policy for cable and DTH. Foreign investors are looking at the country because of cable as it has a lot of opportunity like triple play. Both DTH and cable will co-exist and each one will play a different role in this market.
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