Posted:
This is a note I have prepared to explain the transition of cable TV in India from analog to digital and what that would entail for TRPs
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Indian Tv industry is set to change once digitization happens. It's to be completed by 31st Oct in the 4 metros which form the largest % of TV viewers.
Today, TV channels (broadcasters) make money from i) Advertising revs and ii) Subscription revs. Advertising revs account for more than 60% of their revs and that's why TRPs, on which these revs are based, are sooo important. Subscription revs is lower only coz of the black market in place.
What is this black market? Cable operators report lower number of subscribers in order to book lower incomes so that they pay lower taxes. So the broadcasters dont really know the correct no. of viewers tuning into a particular program. It is said operators are reporting only 20% of their total subscribers on paper!! Do the maths!! Also, today, the cable operators hold these channels to ransom. Since they have the control of the market, they decide which channels to show and which not. Therefore, the broadcasters have no choice but to pay a huge carriage fee to them to play their channels and their profitability dips further.
Digitisation will lead to set top boxes being put in place for each TV set. Carrying all private TV channels will become obligatory and carriage fees will be abolished. So digitization will result in a rise in subscription revenues for TV channels as they start getting revenues directly from the subscribers as well as getting to know the correct no of viewers as transparency improves. So their reliance on TRPs and advertisers for revenues will reduce. Then this entire fight for TRPs and all the gimmicks employed by the channels to increase them, shall go away ( hopefully). How come-well, today only 20% of viewers are being accounted for by the operators and trps of TAM meters in 8160 houses recorded ( less than 20%). When this base increases to 100% after digitisation, it could well be that the same shows get max viewership, but the absolute no. will go up by over 80%!!! Which is huge!!! It could mean that certain programs which are niche, will not be taken off air just coz of low trps despite of good content as long as they are able to get a min no. of viewers. So, I am hoping, we start seeing better content on TV !! Hopefully the weeklies will come back and we get some beautiful shows like the earlier gems buniyaad, humlog, yeh jo hai zindagi, hasratein, fauji and sooo many more..instead of the boring and mostly regressive fare we see today!!!
I also hope that unlike other advanced countries, where digitization led to a huge increase in cost of cable TV viewing, that is not the case in India as currently in 300 Rs we get to see more than 100 channels. Digitisation will require us to buy set top boxes and pay larger sums for the packages but for now, the Govt policies dictate they provide us with most of the basic channels at a marginally higher price. Lets wait and watch...no doubt though, with the enormous developments in technology it is the best way forward and needs to be done.
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