CONTENTS  

Page Nos.

CONTENTS

INTRODUCTION

BROADCASTING AS A PUBLIC SERVICE

MISSION AND OBJECTIVES FOR PRASAR BHARATI

ACCOUNTABILITY AND STRUCTURE

FINANCING AND FUNDING MECHANISMS

CHANNEL POSITIONING

PROGRAMMING CONTENT AND PRODUCTION

TRANSMISSION AND ENGINEERING

MARKETING 50 HUMAN RESOURCES

EXPLOITING NEW TECHNOLOGIES

AMENDMENTS TO THE PRASAR BHARATI ACT, 1990

SUMMARY/MAJOR RECOMMENDATIONS 81 ANNEXURES

Appendix 1 Selected list of References on Broadcasting 87 Appendix 2 List of individuals met 88 Appendix 3 List of representations made by Associations 89    

1. INTRODUCTION BACKGROUND    
1.1 Ministry of Information and Broadcasting, Government of India constituted a Committee comprising the following to carry out a comprehensive review of Prasar Bharati: Shri N. R. Narayanamurthy Chairman & Chief Executive, Infosys Shri Kiran Karnik                      

Managing Director, Discovery Communications India Shri Shunu Sen Chairman & Chief Executive, Quadra Advisory, Marketing Consultant Shri R. C. Mishra                                                                          

Jt. Secretary (Broadcasting, Ministry of I&B) Shri Rajeeva Ratna Shah, Chief Executive, Prasar Bharati, Special Invitee. 1.2 Mr. Naraynamurthy suggested that Mr. Sen be appointed as the Chairman of the Committee. The Committee unanimously agreed to this suggestion.   1.3 A total of nine meetings have been held consequent to the first meeting with Shri Arun Jaitley, Minister of Information and Broadcasting. 1.4 The Committee was briefed to study the working of the Prasar Bharati and, keeping in view its responsibility as a public service broadcaster, to make appropriate recommendations with regard to its organisation structure, legal framework, systems and all other relevant areas to ensure quality, credibility and professionalism within the organisation. 1.5 Members of the Committee met the Prasar Bharati Board on two occasions and also sent to them a draft of the key recommendations.

The Committee is most indebted to the Prasar Bharati Board for their suggestions and comments. 1.6 The Committee was pleased to meet a large cross section of working groups from within Doordarshan and All India Radio. The meetings were of very considerable help to the Committee. In addition, the Committee is grateful to the large number of persons who have provided useful advice, both, as individuals as well as groups. These include advertisers and advertising agencies, production companies, media specialists and many others.

1.7 However, the Committee wishes to state that they are solely responsible for the recommendation made in the report. The members were conscious of its responsibility in providing advice and direction to an organisation, Prasar Bharati, which is concerned with development of media and communication as a public broadcaster within the largest democracy in the world.

2. BROADCASTING AS A PUBLIC SERVICE

2.1 The Need for Public Service Broadcasting

2.1.1 There are three crucial issues relating to Prasar Bharati. These are the identity, funding and functioning of this organisation.

2.1.2 In order to establish the identity of Prasar Bharati it is imperative to seek answers to some basic questions; such as, whether there should be a public service broadcaster and what should it be doing?

2.1.3 A simple answer could be that All India Radio & Doordarshan (the two major constituents of Prasar Bharati) are a historical reality; already in existence, with one of the largest broadcasting networks in the world. Therefore, there is no point in questioning their existence.

2.1.4 Such a proposition, however, does not lend meaning to the existence and identity of an organisation. An organisation cannot grow and excel if it exists only because of historical accident. For any living and vibrant organisation, there must be a larger purpose and mission. It is, therefore, essential to look for the basic purpose behind Prasar Bharati in the context of public service broadcasting.

2.1.5 In order to do this, it is necessary to analyse the characteristics of the broadcasting industry and to determine whether commercial broadcasting can fulfil the objectives of public service broadcasting. In other words, can market forces, alone, meet all the objectives of public service broadcasting.

2.1.6 In the parlance of economics, a good television programme is a "merit" good, similar to education, training and health services. Left to the market forces, it is possible that purely commercial broadcasting will not meet the full needs of public service broadcasting. This is because commercial broadcasting regards the audience as consumers, and not as citizens.

In a poor and developing country like India, this distinction has considerable implications, since the market power or purchasing power of a large segment of the population is small. Moreover, the information and education needs of this segment of the population may not be met by commercial broadcasting. Hence the need for public service broadcasting.

2.1.7 One of the basic objectives of the public broadcasting system should be to strengthen the democratic process by providing information, promoting debate and discussion on all vital issues, and providing a platform for interaction between the common man and the policy maker. Market forces cannot be expected to take care of these objectives. This reinforces the need for a public service broadcaster which would take care of these objectives and also promote a common national outlook by providing shared experiences. In addition, such a broadcasting system is also expected to promote and foster the diverse culture of the country.

2.1.8 Broadcasting has several unique influences on society; such as, on its value systems, social norms, interpersonal behaviour and cultural identity. Given the perceived, if not proven, impact of broadcasting, especially on such important and sensitive issues, governments around the world have sought to regulate broadcasting.

2.1.9 There are two ways to influence a nation’s broadcasting. The first is direct regulation; such as, for example, the intent of our proposed Broadcasting Bill. This would prevent broadcasters from offering programmes that (for example) offend certain sections of the community; or, require broadcasters to air certain number of news and education programmes. However, it has been the worldwide experience that such regulations, even if legally permissible, are not good enough to meet the public service objectives. Such regulations are primarily negative in nature and can, at best, prevent the undesirable, but cannot ensure the desirable.

2.1.10 The second, and, perhaps, the only meaningful manner in correcting the market deficiencies is through the strong and dominant presence of a Public Broadcaster. Such a broadcaster would set programming norms and standards; and, provide leadership in this area. Experience shows that commercial broadcasting services follow the lead of such a broadcaster in order to compete for the viewership of such programmes.

2.1.11 Such an approach brings a clear concept of what constitutes public service broadcasting. It is a broadcasting service which does not depend solely on market forces, but must take into account audience needs and requirements. Indeed, a public service broadcaster should primarily focus on influencing the programme quality and content of all broadcasting, including those by the private sector.

2.1.12 However, the broadcaster cannot take the audience for granted. If such programmes lack appeal, they will not have an audience. The challenge is to provide programmes that are meaningful and need-oriented, and yet achieve a reasonably high audience share.

2.1.13 This requires a high degree of commitment to the mission and policy by the public service broadcaster. It also requires access to appropriate funding and an organisation structure which promotes credibility and creativity, while ensuring the efficiency and effectiveness in the entire operation.

2.2 Setting Standards : Some International Experiences

2.2.1 A recent survey by McKinsey provides some interesting insights into the operation of public service broadcasting elsewhere in the world. Commercial terrestrial competition in Sweden began in 1991, and, not surprisingly, new competitors such as TV3 and TV4 (commercial broadcasters) quickly gained market share. But SVT (Sweden’s PSB) gets its funds from a license fee (a fixed fee charged to every home with a television), so this development did not immediately affect its budget or weaken its commitment to distinctive programming. Indeed, it soon became evident that viewers continued to watch SVT’s high-quality programmes, and SVT’s market share never fell below 40 percent. Commercial broadcasters, who might otherwise have wanted to make their standard programmes, had to compete for viewers by increasing the number of factual, cultural and educational programmes on the commercial channels. SVT now has a prime time market share of more than 50 percent, and Sweden boasts of a high level of public service programming by all television stations.

2.2.2 This is not the only example of the ability of public service broadcasters to influence the behavior of their commercial rivals. In the United Kingdom, BBC spend large amounts of money and time making landmark natural history programmes. This genre of programming by BBC has created the need for similar programming on other channels; programmes such as Survival and Equinox. It has been found that this type of competition among broadcasters raises the quality of the broadcast and develops the taste of the audience; as a result, ratings for such quality programmes remain comparatively high.

2.2.3 Similarly, when Canada’s CBC invested in its French-language news coverage, it forced its main commercial competitor, TVA, to do the same, thus meeting the needs of a minority group and raising overall production standards. In Germany, the high standards of PSBs, ARD and ZDF, in news production prompted their commercial competitor RTL to introduce Spiegel TV news, a programme produced with the help of Der Spiegel, Germany’s most respected magazine. The early commitment of ZDF to local production rather than to cheaper foreign imports not only increased their rating but forced its commercial competitors to rethink the use of imports.

2.2.4 The evidence from these claims is not merely anecdotal. The McKinsey survey reveals a strong cause-and-effect link between the distinctiveness of programmes screened by the Public Broadcaster and that of commercial operators in the same market. In the words of Michael Grade, former Managing Director of Channel 4, "The BBC keeps us all honest".

2.2.5 There is one proviso though: the Public Broadcaster must operate from a position of strength. The US Public Broadcasting Service (PBS), which concentrates on education, the arts, and current-events programmes, was never a major broadcaster in terms of audience. With a market share of only 3 percent today, PBS is hardly a significant rival to commercial operators and cannot meaningfully shape their approach to programming.  

2.3 The Focus of Public Service Broadcasting

2.3.1 The need for public-service broadcasting was never greater. The proliferation of channels has fuelled many wants and fulfilled some needs, but, has left gaps. These should be filled by a public service broadcaster. This is because commercial television broadcasting conducted by privately owned satellite channels must target the relatively affluent urban market as they can only air their programme through a cable operator. Similarly, the private FM radio stations would target the up market, more urban radio listener. The private channel must primarily deliver an audience; rather than being a vehicle for delivering new ideas, information and education to its viewers and listeners.

2.3.2 A public service broadcaster must be concerned about a broader set of clientele and has a much larger mandate. It has to meet the complete media needs of all, including those of a villager who has very few media options. Such a person is either watching television or listening to radio, on a community set, in an isolated part of the country. The public service broadcaster also needs to take into account the media needs of the minority audience, whether they be ethnic, religious, or linguistic. Such a broadcaster needs to concern itself with developing taste, promoting understanding, spread literacy and development, create informed debate and empower the disadvantaged: major issues that a commercial broadcaster rarely addresses. This, then, is the real raison d’être of a public service broadcaster.                    

2.4 The Indian Context

2.4.1 In India, the process of large-scale commercialisation of broadcasting began in the 80’s. Even though Doordarshan and All India Radio enjoyed a monopoly, a reduction in the proportion of budgetary support, combined with pressures to raise more revenues to fund rapid expansion, forced the pace of commercialisation.

2.4.2 As Doordarshan sells airtime on the basis of the size of its viewership, it began to look for ways and means of increasing its share as the media market became increasingly more competitive. This resulted in a reduction in emphasis on public service programmes, as the prime time was reserved for commercial programming which earned the most revenue. Radio underwent a similar process, though to a lesser extent.

2.4.3 A problem has arisen because both services, particularly, Doordarshan, auctioned airtime slots, either by programmes and, more recently, in half-hour segments during the evenings, to private Producers in order to maximize revenue. This has led to a quixotic situation that, increasingly, Doordarshan, a public service broadcaster, owns neither the programme content nor the marketing rights to the programme being shown on its channel. (This is also because Doordarshan has almost no programming capability on its own. The critical need to improving this vital capability is discussed, in detail, in Chapter 7.)            

2.4.4 While the above steps have resulted in Doordarshan’s income increasing, the overall growth in income since 1995 is significantly less than the industry; be it the national or the regional language channels. This is responsible for the loss in Doordarshan’s market share in terms of viewership and revenue, even though the organisation broadcasts the most popular programmes in Hindi and many of the regional languages, and has the largest audience amongst all television channels.

2.4.5 It is within this context – and within the overall role for public service broadcasting – that the Committee would like to make certain specific recommendations on Prasar Bharati.

2.4.6 With regard to the overall aspect of public service broadcasting, the Committee would like to suggest that: Public-service broadcasting is essential in India, and must be seen as a right of all citizens. It must provide a platform for free discourse and debate, while its content must empower people. In the present context, it is essential to have Prasar Bharati in the role of a public service broadcaster in India. Prasar Bharati, and its constituents – Doordarshan and All India Radio – must be autonomous and completely free to make their own operational and tactical decisions.

2.4.7 The ensuing sections of this report will look at other important issues which deserve recognition and require discussion; on the basis of which the Committee will make certain firm recommendations. and suggest a set of consequent action.

3. THE MISSION AND OBJECTIVES FOR PRASAR BHARATI

3.1 As outlined in the previous chapter, the Committee would like to see Prasar Bharati, as the public broadcaster, playing an important and critical role in determining the direction and thrust of broadcasting in India by setting standards through programmes that are meaningful, absorbing, diverse in content, innovative in design and of the highest quality.

3.2 However, the role of Prasar Bharati goes beyond this. The power of the broadcast medium is acknowledged, especially in areas like agenda setting, information transfer, experience sharing, motivation and mobilisation. The Committee believe that Prasar Bharati can play a major role in spreading knowledge and education; in countering superstition and promoting a modern scientific attitude; in fostering social change and in catalysing development.

3.3 Of course, the medium must, also, provide entertainment; and, indeed, this is its main strength. However, care should be taken to ensure that, for Prasar Bharati, advertising revenue earned by selling entertainment programming does not become the only yard stick for judging the performance of this organisation. Alternative indices, related to audience size and share, programme content, quality and impact are more meaningful and must be used. Once the vision and framework of Prasar Bharati are clearly defined, then, within these, revenue maximisation should be a goal.

3.4 The mission of an organisation defines broadly its purpose to its stakeholders. It helps to set the overall direction and provides a touchstone in deciding what it should do and, importantly, what it should not do. We feel that a clearly articulated mission is of particular importance to Prasar Bharati, in order to steer the organisation on a course that is in line with the key objectives underlying its creation.

3.5 The mission and objectives of Prasar Bharati need clear articulation. This is essential so that Prasar Bharati, on one hand, resists the temptation of the commercial market; and, on the other hand, also resists the power of political pressures and patronage.

3.6 Most important of all, Prasar Bharati must ensure that it meets its central mandate of providing its audience with programmes that inform, educate and entertain.

3.7 The mission statement that we would commend for adoption by Prasar Bharati is as follows: Prasar Bharati will aim to provide, in the most efficient manner possible, media content of the highest quality that will empower and enlighten the citizens of India, and audiences outside the country, through original and relevant programmes which inform, educate and entertain whilst ensuring a sizeable audience and reach.

3.8 While the vision must necessarily be broad and somewhat general, it is necessary to define, with greater precision, the role of Prasar Bharti as the public service broadcaster in India. This is best done through the enunciation of the key objectives for the organisation.

3.9 We recommended that the key objectives be: To create content – textual, graphic, pictures, video and audio – that : Is absorbing, interesting and enjoyable; and is relevant to the audience Is impartial, unbiased and presents all sides of a story; respects and gives due weightage to differing and contrary opinions, beliefs and viewpoints Reflects the diversity and richness of India’s culture, Develops specific programmes appropriate for a most important audience : children Addresses the needs of minority audiences: the disadvantaged, linguistic, cultural, ethnic, religious and special interest groups, Serves as an input for education, social change and national development Is of the highest quality, and sets standards for other broadcasters To serve as a unique platform that: Creates a forum for informed debate and discussion on issues of national or regional importance; particularly those which are agitating people’s minds Provides space for issues, artists and programmes that private channels are unlikely to air Serves as a means for audience feedback and for people-to-people communication Acts as a vital means for empowering and enlightening people through information, education, and culture, in an absorbing manner Provides entertainment and enjoyment to its large and varied audience. To ensure that transmission provides the best technical signal quality to every receiver in India, in the most efficient and cost effective manner. In addition, to carry Indian content to its relevant audience worldwide through appropriate means. To create and to utilise the necessary hardware infrastructure so as to fully exploit the potential of new media and technologies for the benefit of its present and potential audience. Restructure and fashion itself to emerge as an efficient, world-class Producer and broadcaster of meaningful, entertaining content.

4. ACCOUNTABILITY AND STRUCTURE

4.1 The public service broadcaster plays a key role in any society, especially, in a large and thriving democracy. It must be a part of "civil society", independent of and distinct from the government. In fact, the public service broadcaster must act as one of the bedrocks of society, and seek to continuously enlarge the so - called "public sphere". It must play host to informed debate, provide space for alternative and dissenting viewpoints, be a voice for the voiceless, and give substance to the phrase "participatory democracy".

4.2 A key principle of a public service broadcaster is that it must be completely independent. Its structure, financing and personnel policies should be such that it must not be at the mercy of - or amenable to pressures from - the government of the day. On the other hand, the public service broadcaster need not give in to the temptation of maximising commercial revenue by providing mindless programming. To maintain this balance may not always be easy. A clear understanding of its own accountability and a good organisation structure can help to facilitate this objective; and a truly professional staff will ensure it.

4.3 At the same time, the public service broadcaster must be accountable directly to its "owners", the citizens of India. This means, in practice, Prasar Bharati must be accountable to the body which represents the citizens of the country: the Parliament.

4.4 It is within these broad parameters that the committee examined the structure of Prasar Bharati.

4.5 The Sengupta Committee had suggested that the functions of the Chairman and Executive Member be combined. While the suggestion does have some merit, this committee felt that, on balance, the advantage lay in separating these two functions.

4.6 The Committee strongly recommends that Prasar Bharati retains the concept of a part-time Chairman and a full-time Executive Member (to be designated as the Chief Executive).

4.7 The issue of genuine corporatisation of Prasar Bharati was looked at. This would entail adopting a normal corporate model, having equity and shareholders. The Committee felt that the role of Prasar Bharati is unique, and while the efficiency, flexibility, transparency and responsiveness of a good corporate structure are essential, the organisation of Prasar Bharati has to be somewhat different. The Committee therefore, commend the present concept of Prasar Bharati being a "body corporate" created by an Act of Parliament.

4.8 However, it is recommended that the possibility of corporatising certain activities of Prasar Bharati be examined. For example, the transmission activity, the studio and production facilities could be corporatised; as also, in due course, some of the newer areas of such as Internet and DTH. 

4.9 As mentioned earlier, the role and functions of a public service broadcaster require that must it be autonomous. While Prasar Bharati should be accountable to Parliament for policy and strategic decisions, the organisation would be responsible for its own operational and tactical decisions. The government of the day must have no hand in its functioning or decision-making, and must remain at arms-length from Prasar Bharati. While the structure and systems can help to promote this, ultimately it is the commitment and professional integrity of the key individuals in Prasar Bharati and in the Government which will ensure that suitable conventions are developed so that this objective is met. At the same time, Prasar Bharati must function in cooperation and in collaboration with the Government; in crucial areas such as education, health, environment and rural development.

4.10 The relationship between the government and Prasar Bharati will always continue to be difficult to define. It will require self-discipline on both sides, and a non-adversarial approach. Once healthy precedents are set, it will be much easier for those who follow.

4.11 A crucial manner by which Prasar Bharati can reinforce its independence would be through financial independence. In Committee’s view, Prasar Bharati must aim to become self-sufficient within 5 years and must not depend on Government financing in the longer term. The only possible exception could be capital financing to meet strategic or national goals that go beyond public service broadcasting. Indeed, it is vitally important that, for the financing of revenue expenditure, Prasar Bharati does not depend on the Government, as this could lead to some form of political or other pressure.

4.12 The second key element of the separation from government is in the area of personnel. The Committee recommends strongly that the entire staff required by Prasar Bharati and its constituents be transferred to that organisation. Further, it is recommend that the Prasar Bharati management be allowed to select only those whom they require. Others could either return to their parent department within the Government, or be given a suitable VRS.

4.13 Moreover, in the future, there should be no further deputation of government employees to Prasar Bharati. Such deputations are often counter productive and go against the principle of autonomy and being at arm’s length from both the politician and the bureaucracy. Similarly, deputation from the private sector should also not be considered. This important recommendation should be put into effect as soon as it becomes implementable as a part of the total reform of the personnel policy.

4.14 It is important to define the relationship of Prasar Bharati with the Parliament and the Government. In a cabinet form of Government, within a parliamentary democracy, it is perfectly in order for Prasar Bharati to discharge its accountability to the Parliament and its committees through the Minister of Information and Broadcasting.

4.15 We consider accountability to the public as being a key area for any public service broadcaster. To ensure this, we recommend that, once a year, on radio and television, the Board of Prasar Bharati and the Chief Executive make a brief, yet comprehensive, presentation as an annual review, highlighting the objectives of the year, major activities of the organisation and key achievements and failures; in addition, provide a perspective and the key objectives for the forthcoming year. The feasibility of adding an inter active element to this presentation by receiving comments and questions on fax, phone or Internet may also be explored.

4.16 It is also important that the audience for Doordarshan and All India Radio be able to send their views, air their grievance and raise any question they may have with the organisation. BBC has an excellent programme where viewers and listeners write, phone, fax or email their comments, criticisms and questions. A spokesperson, on behalf of BBC, answers a selected number of queries in an interesting and honest manner on a weekly programme. This programme has celebrated its Silver Jubilee. Perhaps, this example could be adapted by Prasar Bharati for both television and radio.

4.17 The composition of the Prasar Bharati Board, which must deal only with overall matters of policy, needs to be modified. The Board should consist of a Chairman and six part time Members, in addition to a representative of Ministry of I&B who should not be below the rank of Joint Secretary. Amongst the full-time Prasar Bharati employees, only the Chief Executive must be a member of the Board. The present structure, as enunciated in the Act, could undermine the authority of the Chief Executive by including other members of the operating management on the Board. However, as and when required, any of the functional or departmental Heads will be invited to a specific Board Meeting by the Chief Executive depending on the need for that person to be present at a particular Board Meeting.

4.18 A Management Council should be constituted, chaired by the Chief Executive, Prasar Bharati with the senior executives who are either profit or function responsible, as members. We recommend that the membership comprise: DG:AIR, DG:DD, heads of proposed new Transmission and New Business functions, heads of Strategic Planning and Technology and heads of Personnel and Finance. Thus there will be 8 members. The Management Council should be responsible for all operational and management matters. In addition, the Management Council should discuss and make recommendations to the Board on policy issues, and oversee the implementing of the decisions of the Board and the Council.

4.19 There is need for autonomy, decentralisation and devolution of power within Prasar Bharati. For example, within each business – Doordashan, All India Radio and the proposed new business – there should be a body of operating managers responsible for all day to day operations; such as content, marketing, commercial operations and, importantly the regional network.  

5. FINANCING AND FUNDING MECHANISMS

5.1. An appropriate funding mechanism is crucial for achieving the mission and objectives of a Public Broadcaster.

5.2. There are two major ways to fund such an organisation. The first could be through licence fees, public subsidies and Government grants. Alternatively, the funding could be primarily from commercial revenue such as advertising and sponsorship revenue, pay channels, sale of audio and video programmes, and programming agreements. Indeed, a broadcaster has the choice of several different methods for its financing.

5.3. In U. K., BBC is funded by license fee and by the sale of its materials and services. BBC does not, in the U. K., depend on advertising, sponsorship or subscription revenues.

5.4. In some other countries, like Japan and Sweden, Public Broadcasters rely almost entirely on licence fee. Spain’s TVE and New Zealand's NZTV are, on the other hand, completely financed by advertising revenue. PSBs in France, Germany, Italy and Ireland combine the licence fee revenue with advertising, while Australia’s ABC is entirely funded by Government grants. Canada’s CBC combines Governments grants with advertising revenue. In USA, where PBS plays a marginal role, the organisation is funded by Government grants and private donations. 5.5 It is difficult to say which funding model is ideal for Prasar Bharati. The success and failure of a model could depend on the national values and traditions of a country; and on the media market opportunities available. No single universal model can be recommended across the globe. Every country, keeping in mind its own strengths and weaknesses, its opportunities and threats to its system, would need to adopt its own model.

5.6 Before finalising an appropriate funding model in the context of India, it is important to recognize the advantages and disadvantages of each option. Funding of public service broadcaster by a direct charge on the user (that is, by a licence fee), was earlier considered to be the ideal mechanism for funding such a broadcaster. While a similar system is successfully working in UK and Sweden, the same has been abandoned in Australia and New Zealand. Australia has substituted it by a Government grant and New Zealand is still considering various options to substitute the license fee, which they have abolished recently. In India, the system of Radio and TV receiver licence and associated fee was abolished in 1985 as it was difficult to administer and costly to implement.

5.7 To overcome the administrative and other difficulties in collecting the license fee, some countries have substituted the fee by a Government grant from the pool of general taxes levied by the State. However, sole dependence on Government grant runs, in our view, contrary to the basic principle that Prasar Bharati should keep at arms length from the Government. Attempts have been made by countries which have adopted this system of funding, to neutralise the direct influence of the Government by building appropriate institutional mechanisms (through statutes), organisational structures, and by having healthy traditions and conventions.

5.8 Funding through advertisement and sponsorship revenue could bring about a much desired efficiency in the utilisation of public resources. However, it may dilute the purpose of a Public Broadcaster. This is because if the organisation has to survive solely by competing in the market, the Public Broadcaster may not be in a position to correct market deficiencies by providing a genre of programming which is necessary for society. Therefore, funding a Public Broadcaster entirely through advertisement and sponsorship revenue is not often recommended.

5.9 Similarly, funding entirely through a system of ‘pay TV’ runs contrary to the basic philosophy of a public broadcaster in a developing economy, as it is required that its basic service should be available universally, irrespective of the viewer’s capacity to pay. However, this option certainly merits consideration for the premium products which may be marketed by Prasar Bharati; for example, the specialist channels which are targeted at the upper end of the market or New Media services such as DTH or Internet. Indeed, entering the New Media is a business decision which is difficult to justify conventionally, in terms of Government funding. The committee believes that it is essential for Prasar Bharati, as a leading player in the ICE category, to exploit this opportunity; which, may be small today, but with the exploitation of convergence technology, is likely to become as important as the traditional service of providing television and radio, in the not – too – distant fututre.

5.16 Opportunities to earn revenues from the sale of television and radio programmes both within and outside the country should also be targeted. We believe that there is considerable scope for the sale of television programmes to channels abroad, which are targeted to the Indian diaspora; and in certain specialised markets which are not of immediate interest to Prasar Bharati. Indeed, a special marketing operation must be developed to fully exploit such opportunities; as such business, if properly conducted, could add a not insignificant amount to the commercial earnings of Prasar Bharati.

5.17 Two major commercial opportunities which need to be exploited are Prasar Bharati’s transmission capabilities and its studio and production facilities. There is an opportunity to utilise the large transmission capability of the organisation to provide digital terrestrial transmission to private operators in addition to providing up linking facilities through the satellite network on which Doordarshan currently has excess capacity. Similarly, in the area of Radio, there are transmission, engineering and studio capabilities which All India Radio could profitably sell to private operators.

5.18 The Central Studios which belong to Doordarshan and All India Radio along with the regional production capabilities need to be refurbished; indeed, to ensure professional capability, of the desired quality, it is certain that additional investment in equipment would be required. After the internal production requirements needs have been met, the opportunity to rent the available excess capacity should be considered. Not only will this bring in additional revenue, but it will also provide an incentive to these facilities to remain up to date and "top of the line" in their category.

5.19 The Committee would like to state that the growing demands on Government financial resources from various competing sectors of the economy which are the Government’s prime areas of responsibility (such as, the social and infrastructural sector), would mean that public institutions such as Prasar Bharati will be under pressure to generate their own resources. The Committee believes that this pressure is to the public good. Because a self sufficient Prasar Bharati, in the area of financing, will not only reduce the pressure on the public exchequer, but would bring about a significant increase in the degree of efficiency in the overall operation of Prasar Bharati. 

6. CHANNEL POSITIONING 6.1 Approach and Strategy

6.1.1 Prasar Bharati operates a large number of radio and TV channels. While some have a clear definition, target audience, and positioning, others seem to have no clear identity. Moreover, some channels are not only serve little purpose, but also cannibalise viewership from other Prasar Bharati channels. It is critical that each channel is positioned clearly and distinct from one another. In terms of its objectives, each channel must be differentiated so that it is preferred viewing/listening for a specific set of customers.

6.1.2 We recommend that each channel, both on radio and TV, have a clearly defined identity and positioning; so that, each channel is the specific choice for a type of viewer (or listener).

6.1.3 As a public broadcaster, Prasar Bharati has multiple responsibilities. Amongst these, a particularly important one is its duty to ensure that, as far as possible, each listener and viewer is able to access relevant information and entertainment in a form, language and idiom which is understandable to the audience. In order to do this, a substantial amount of the transmission must be decentralised with programmes produced locally, in the local language.

6.1.4 Hence, it is important, that in the case of television, each Regional Kendra broadcast for, at least, four hours during the late afternoon and evening, in the relevant regional language, over the terrestrial channel. In the case of radio, it is important that FM radio stations develop themselves as local or city stations and there is significant local programming on the Akashvani stations.

6.1.5 Finally, we must have a set of national channels, both in radio and television, with programmes of broader national content and interest. Such programming may primarily be in Hindi or English, a constraint that we will have, at least till technology is in place to cost-effectively broadcast multiple audio channels.

6.1.6 The division of time between these three different categories (local, regional, national) is not easy, and could vary from State to State, or even within a State. We recommend that two principles must apply : Broadcast by all transmitters of a mandatory, "must-carry" part of the national channel. Beyond this mandatory part, decentralisation of decision-making to the regional TV Kendras and radio stations as to whether or not to carry other programmes of the national channel or to develop adequate high quality local programming.

6.1.7 Each TV Kendra must, in part, act and behave as a local channel. Depending on the location, such programming could take a small, yet significant, portion of time. To benefit from such TV programmes, it is best if the local content is ‘actionable’. Therefore, to the extent possible; such programming must be participatory in nature.

6.1.8 Thus, the terrestrial transmitters must carry local, regional and national programmes, with the mix of these being determined locally; except, for the mandatory portion of the national channel.  

6.1.9 In addition to having programmes on the DD National channel, each State must have in its Primary channel, programmes catering specifically to the audience and the culture of that State, in the local language. We must recognise the growing mobility of people across the country. Such ‘non – residents’ desire to retain contact with their own culture and language; hence, each of the major regional languages should have a channel carried via satellite, so as to be available for cable carriage anywhere in this country. These channels will be language and culture specific; and will focus on the needs and interests of the people living in that particular State.

6.1.10 It is important that the local, regional and national programming content is distinct. Overlaps, or even repetition, must be avoided.

6.2 Channel Identity

6.2.1 There should be a national channel, DD National, that will broadcast for 24-hours a day. Its primary mode of distribution will be terrestrial, though it will also be transmitted by satellite and cable. The content will cover a whole range of topics and subjects, keeping in mind the mass reach that it will enjoy, and the fact that the "must-carry" programmes of this channels are the only ones to which all viewers in the country will have access. Accordingly, it must seek to inform, enlighten and stimulate; and provide entertainment and enjoyment.

6.2.2 The second national channel, which will be both terrestrial and satellite, will be DD Metro. This channel will be positioned clearly and without any ambiguity as the DD Entertainment Channel. DD Metro will be aimed at the same market as the Hindi satellite channels which broadcast to a large market; currently, about 30 million homes. It is important to perceive this channel not just as a major revenue earner for Prasar Bharati, but as a channel which provides a large audience base amongst the urban middle class. Currently, amongst cable and satellite viewers, Metro in the danger of becoming a minority channel.

6.2.3 A major area of focus will be the news, current affairs and information channel ("DD News"); primarily in Hindi and English. DD News will focus on news, current affairs, discussions and debates on topical issues, and on providing information. The purpose will be to provide a national perspective on matters that are of importance to India. It is, therefore, important that this channel, which, along with DD National, forms the core of public-service broadcasting, has the widest possible reach. Hence, in addition to satellite broadcasting, DD News will also broadcast from the terrestrial transmitters already available in Mumbai, Calcutta, Delhi and Chennai. In the evening hours, when news in Hindi and English is being broadcast on DD National, it is proposed that the terrestrial stations at Mumbai, Calcutta and Chennai will broadcast news or current affairs programme in the local language.

6.2.4 Another satellite channel of DD will be aimed primarily at show-casing quality entertainment, art and culture and fostering their growth. This will be known as DD Prime. This channel will feature classical and folk music concerts, dance, drama, art and quality cinema from India and around the world; in addition to relevant documentaries, book reviews, talk–shows and discussions.  

6.2.5 DD Prime will provide an outlet for outstanding and deserving artistes and will seek to meet the needs of an interested audience while simultaneously developing the taste for such quality fare. This channel will include programmes such as plays and cinema in regional languages, with sub-titling where appropriate. It is proposed that DD Prime operate primarily from 7 in the evening till late night.

6.2.6 It is hoped that this channel could be developed into a true multi purpose channel. While in the evening hours, as mentioned above, the channel will host DD Prime, during the day this channel can offer technical and continuing education, on an interactive format; aimed during the early morning hours, at young professionals and during the afternoon provide programmes which offer suitable vocational, education and training to high school and college students.

6.2.7 During the late afternoon and early evening, this channel should broadcast both instructive and enjoyable children’s programming under a suitable brand name. This is important because good children’s programmes, particularly in Hindi and regional languages, are just not available on television; and there is little incentive amongst creatives to develop such programmes.

6.2.8 To cater to the immense and widespread interest in sports, and to promote interest and participation in certain games, DD will run a dedicated sports channel ("DD Sports"). This channel will be distributed via satellite and cable.  

6.2.9 DD will have an international channel ("DD International") which will pick appropriate programmes from other channels, and also create special programmes aimed to meet the needs and interests of the potential audience for this channel. Its primary audience will be the Indian diaspora, but it should aim to get an audience beyond this, especially for certain programmes on Indian culture, news about South Asia, and our neighbouring countries. This will be distributed via the wide-area beam of INSAT 3C and other platforms appropriate to each country: cable/DTH/MMDS or even terrestrial, where possible. The Committee recognises, as provided in the Prasar Bharati Act, the status of this channel; in the view of its funding by the Government. While the bulk of educational programmes must be in the local language in each region, and must therefore find appropriate and suitable time slot in local/regional channels, we recommend strong support to and strengthening of the newly-started DD Gyan Darshan channel. This must have nation-wide reach, which means that its content will be primarily in Hindi/English and be focussed on higher secondary, tertiary and professional education. It must have linkages with inter-active initiatives like the Training and Development Communication Channel (being operated by ISRO) and the Internet. It must serve as a major vehicle for organised/structured distance-education programmes (such as, those of IGNOU) and for enrichment (for example, UGCs Countrywide Classroom) and aim at a nationwide audience.                            

6.2.11 At present, DD does not have multiple channels in any regional language. Over time, this should be perceived as a desirable development. When that happens, we would again recommend a clear and distinct identity for each channel, and a clear purpose vis-à-vis Prasar Bharati’s mission and objectives.