May 2013

EDITOR’S SCATVIEW

In its enthusiasm to declare DAS 2 a success, the I&B ministry has stated that 15 out of 38 cities have achieved more than 100% digitisation. In fact the ministry statement indicates Hyderabad to have achieved over 160% digitisation! Clearly the figures are illogical. Hyderabad homes clearly could not have installed 50% more STBs than the total TVs owned! A more factual interpretation of the figures would be that the ministry had grossly under-pegged the DAS 2 digitisation requirements. The figures are therefore proof that the digitisation target was grossly underestimated by the I&B ministry in at least 15 (if not all 38) cities.

The I&B ministry has admitted that the BARC is a failure and has made no headway. The BARC was proposed to be a television rating system jointly set up by broadcasters and ad agencies, as an alternate to TAM. The I&B ministry has now requested the TRAI to propose regulations and guidelines for an alternate TRP measurement body in the country.

The government has so far not taken a firm stand on TV channel censorship, preferring to let broadcasters not only set their own norms but also regulate themselves. This very cozy situation for the broadcasters has been rejected by the Delhi High Court who has demanded that state intervention is necessary. The court has directed the govt. to set up a TV content censorship panel which is to comprise of men and women of eminence from various fields.

The Competition Commission of India has cleared the merger that created MediaPro. It is a significant decision since MediaPro distributes almost 50% of all prominent pay channels in the country.

Industry reports and projections often reflect the current industry mood. It is interesting to compare 2 consecutive annual projections from the same source, which often do not show any continuity. A recent report by MPA on the DTH industry projects a dismal growth in DTH ARPUs over the next 3 years despite all cable and satellite homes in the country compulsorily migrating to digital, by the end of next year.

More than a month after the DAS phase 2 deadline, DTH has not gained substantial numbers or inroads into consumer homes. Clearly, consumers are happy with their Cable operator and will continue to patronise him.