Tag: Broadcasters

  • Bombay high court questions TRAI on twin conditions, DPO bouquets

    Bombay high court questions TRAI on twin conditions, DPO bouquets

    KOLKATA: Within a very short span of the new tariff order (NTO) implementation, the Telecom Regulatory Authority of India (TRAI) issued a set of amendments at the beginning of 2020. These have been challenged legally by the major broadcasters, and the litigation is still in progress.

    In an interesting twist, at today's hearing yesterday, the bench at Bombay High Court has questioned the relevance of a few important clauses of the regulation.

    The division bench of the Bombay high court comprising Justice AA Sayed and Justice Anuja Prabhu Desai asked whether the twin conditions were placed by TRAI for consultation. The industry regulator had introduced this clause citing “manipulation” of consumer choice by broadcasters.

    Read more news on Trai

    “The sum of the a-la-carte rates of the pay channels (MRP) forming part of a bouquet shall in no case exceed one and half times the rate of the bouquet of which such pay channels are a part. The a-la-carte rates of each pay channel (MRP),forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part,” TRAI said along with introducing the Rs 12 cap for introducing a channel in a bouquet.

    TRAI has been upholding (amended tariff order) NTO 2.0 for bringing rationality between a-la-carte price and the bouquet price. But several reports have indicated that consumers opted for the distribution platform operator (DPO)-designed bouquets post NTO 1.0.

    Considerably, the bench also mentioned that more than 90 per cent bouquets in the market are DPO bouquets which do not appear to be under the same restrictions as the broadcaster’s bouquets. The bench asked TRAI's counsel to explain how and whether DPO bouquets are bound by restrictions as compared to the broadcasters.

    Giving an example of NTO 1.0 which was implemented without the discount cap on the formation of a bouquet by the broadcasters, the bench asked whether NTO 2.0 could be implemented without some of the provisions.

    Read more news on NTO

    The counsel appearing for TRAI has sought time to respond till the next date of hearing, 8 October.

     It is expected that counsels for the union of India and TRAI will complete their arguments during the next hearing. However, keeping in mind the rejoinder to be made by the broadcasters, the first half of Friday has been kept as reserve time.

    Over the past couple of years, the industry has been overburdened by regulations. According to a FICCI -EY report, NTO 1.0 reduced the number of TV subscribers by 26 million. While broadcasters are reeling from the Covid2019 impact, it is of serious concern how another change will impact the industry. 

  • The challenges & opportunities before incoming TRAI chairman PD Vaghela

    The challenges & opportunities before incoming TRAI chairman PD Vaghela

    KOLKATA: As the extended five-year term of Ram Sewak Sharma as chairman of the Telecom Regulatory Authority of India (TRAI) concludes today (30 September), industry will be looking closely at his replacement, PD Vaghela. The Gujarat cadre 1986 batch IAS officer is the outgoing  pharma department secretary who celebrated his sixtieth birthday on 22 September. Prior to that, he was the chief commissioner of commercial tax in Gujarat. He is also believed to have played an important role in the roll out of the goods and service tax in 2017. Also

    Vaghela is taking the chair at what can be termed a very crucial time for both the telecom and broadcasting sectors. While his predecessor has been widely criticised by stakeholders for over-regulating, Vaghela will have to bring more balance if he wants to narrow down the gap and sense of distrust between industry and the regulator.

    A task which could be challenging as he apparently has not had much to do with the broadcasting sector during his 34 years of being a civil servant. A B.Com graduate from Gujarat, he has masters degree from an institute in the The Hague, a post-graduation in business administration and finally a doctorate in sociology.

    Vaghela has held senior positions in the Kandla Port Trust, with Gujarat tourism, with the industries and mines department, the rural development department, as municipal commissioner (Bhavnagar), and in the home ministry.

    Read more news on TRAI

    One school of thought in the industry is that given his background and the circumstances during his appointment, Vaghela will mostly follow Sharma’s path during his tenure.

    At this moment, broadcasters are indulged in legal battles with the industry watchdog on many fronts including the ad cap and the amended new tariff order.

    A senior executive at one of the big four broadcasters says while the court’s verdict will have to be implemented by both broadcasters and the TRAI, Vaghela’s first challenge will be the direction TRAI will take once the litigation between industry and the regulator is adjudicated upon.  According to him, the new chairman has to also look after the viability of small cable operators who are worried about their future.

    The executive also adds that everyone is now perceiving broadband, not broadcasting, as the future of entertainment. Hence, he adds that the new chairperson can play an important role in carefully steering the future of the broadcasting industry.

    While there is a high chance that a number of consumers will shift to IP-based streaming content via OTT services, Vaghela will have to tread carefully, balancing digitisation and safeguarding traditional broadcasters’ interests.

     “The RS Sharma regime has failed broadcasters. He served an important role in UIDAI implementation. Hence, we had huge expectations from him but we have been disappointed at the end,” a senior industry source states. 

     Although the executive is not very optimistic about the new chairman being able to dilute this sentiment, he thinks the industry should at least observe him for the next few months, before pronouncing any judgements.

    However, another industry veteran claims Vaghela is quite likely going to continue to carry on in the same vein as Sharma. Like his peers in the industry, he acknowledges that there have been frequent changes in regulation which have been challenging, but he also credits Sharma for bringing in some semblance of order in to the TV distribution ecosystem.

    Read more news on NTO 2.0

    “There was so much of scrapping between MSOs, LCOs and broadcasters,” he says. “By pushing cable TV digitisation and mandating some sort of price standardisation through regulation, he forced the industry’s hand to try and work together, which they are doing currently. Yes, there is some irritation from time to time, but the value chain is working closer together, keeping rules modernisation, upgradation and customer service in mind.”

    The veteran also adds that Sharma played a large role in pushing ahead the Narendra Modi-led government’s digitisation agenda, by allowing new pricing models as far as mobility is concerned. “The Jio phenomenon of cheap data, free calls, has been a game changer for the spread of the internet where incumbents such as Airtel and Vodafone and Idea were working with legacy business and consumer models.”

    The CEO of a TV network points out that even though the court cases against NTO 2.0 continue in the courts, Vaghela will very much have to “balance value for consumers with the interest of broadcasters along with operators. He will also possibly play a significant role in OTT legislation as the government is gearing up its efforts to regulate this rapidly growing vertical.”

    “Along with working on major rollouts like 5G implementation, enhancing fibre-to-home broadband connectivity across the country on the telecom side, Vaghela can choose to leave his mark as far as cable TV amendments, a national broadcaster policy, DTH licensing are concerned. Additionally, he could things take a step further and start looking at drawing up a national video policy encompassing TV, streaming, and possibly mobile delivery of video,” says the CEO.

    On the telecom side, Vaghela has contentious issues like super high 5G pricing (at Rs 492 crore per MHz in the 3500 Mhz band) which could deter the ailing telecom service providers(TSPs)  from making a bid. The adjusted gross revenue ruling has gone against at least two of them who have been reeling courtesy the price war that Jio has waged for the past few years. The consultation paper on whether a floor price needs to be put in place for telecom services will also take up his attention. Then, he will have to decide on interconnect usage charges that TSPs charge each other for calls made by customers. They are due to be scrapped by early next year.

    Of course, he will have a bunch of old hands who have been at the regulator for a few years. There’s the TRAI secretary Sunil Gupta, and numerous other advisers who provided back end support for almost every decisive direction, recommendation, and regulation the watchdog has given over the years. How he takes their advice and inputs and formulate these into law for broadcasting and telecom will decide whether he will be blessed or vilified by the industry.

    (This piece has been penned following conversations with real executives from the business of television. Most of them requested that their identity be kept secret while using their quotes and views in this piece) 

  • TRAI directs broadcasters to comply with the provision of NTO 2.0 by 26 August

    TRAI directs broadcasters to comply with the provision of NTO 2.0 by 26 August

    NEW DELHI: Telecom Regulatory Authority of India (TRAI) in a recent notification has directed all broadcasters to comply with the provision of the New Tariff Amendment Order (NTO 2.0) by 26 August. The broadcasters were previously asked to comply by NTO 2.0 by 10 August but due to the ongoing battle between broadcasters and the regulatory body, the date has been substituted by 26 August.

    The Bombay High Court’s Verdict on the NTO 2.0 case between broadcasters and the TRAI is expected on 24 August.

    The Indian Broadcasting Foundation (IBF) and other broadcasters had approached the Bombay High Court over the Telecom Regulatory Authority of India’s (TRAI) July 24 directive, wherein it has asked all broadcasters to comply with NTO 2.0 by August 10, despite the fact that the matter is sub judice and the final judgment has been reserved by the court.

    In one of the hearing, the case was listed before the original bench comprising Justice AA Sayed and justice Anuja Prabhudesai. While the legal battle is ongoing since long, TRAI citing a regulatory vacuum released a fresh directive on 24 July irking the broadcasters who have already been battling with the impact of the ongoing pandemic.

    It asked broadcasters to publish details including maximum retail price per month of channels and maximum retail price per month of bouquets of channels, the composition of bouquets and also amended reference interconnected offer (RIO) and other details on their website. 

  • Bombay high court’s NTO 2.0 verdict on 24 August

    Bombay high court’s NTO 2.0 verdict on 24 August

    KOLKATA: The Bombay high court's verdict on the NTO 2.0 case between broadcasters and the Telecom Regulatory Authority of India (TRAI) is expected on 24 August. Until then, all parties have agreed to wait before taking any further decision. 

    During a hearing last week, the court asked both parties to follow “gentlemen’s word” and TRAI also assured to not take any action against broadcasters who haven't yet implemented NTO 2.0.

    During Friday’s hearing, the case was listed before the original bench comprising justice AA Sayed and justice Anuja Prabhudesai. While the legal battle is ongoing since long, TRAI citing a regulatory vacuum released a fresh directive on 24 July irking the broadcasters who have already been battling with the impact of the pandemic.

    It asked broadcasters to publish details including maximum retail price per month of channels and maximum retail price per month of bouquets of channels, the composition of bouquets and also amended reference interconnected offer (RIO) and other details on their websites by 10 August.

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  • NTO 2.0: DPOs express discontent over partial implementation of regulation

    NTO 2.0: DPOs express discontent over partial implementation of regulation

    KOLKATA: With constant changes in regulations, the pay-TV sector in India continues to face uncertainty. Major broadcasters have come together to fight the implementation of the amended new tariff order (NTO 2.0) as directed by the Telecom Regulatory Authority of India (TRAI). However, distribution platform operators (DPOs) have already complied with the network capacity fee (NCF), multi-TV charges, etc., under the new directive and express dissatisfaction over the partial implementation. 

    “TRAI had asked all DPOs to adhere with NTO 2.0 on NCF, multi-home and others. As broadcasters have not given any new rates, you can’t implement the full NTO 2.0. If you implement half NTO, you have taken whatever is negative on your books but whatever positive we could take from broadcasters’ side has not happened. Hence, it is harmful to both DPOs and subscribers. We will be struggling how to handle it if the issues drag on and broadcasters don’t come out with new prices,” says GTPL Hathway CATV business head and chief strategy officer Piyush Pankaj.

    While broadcasters are reeling under Covid2019 impact, TRAI came out with a directive to implement NTO 2.0 by 10 August. As the petition against it was already sub judice, the broadcasters went to the Bombay high court challenging the directive. The court asked both parties to go by “gentlemen’s word” and TRAI assured it would not take any action till the next hearing. The court is hearing the case today before a bench comprising justice AA Sayed and justice Anuja Prabhudesai. 

    Another executive from a national MSO also brought up the fact that TRAI made all DPOs to implement the order on 1 March. But DPOs could not implement new pricing without broadcasters publishing it. Hence, many DPOs reached out to TRAI saying that either broadcasters should comply with all the rules or the authority should roll back pressure on DPOs. He also informs that one of the large broadcasters already published new pricing with 10-15 per cent hike but was continuing with the old reference interconnect offer (RIO).

    “Any channel which is above Rs 12 cannot be clubbed in a bouquet. If broadcasters don’t reduce the prices to be included in the bouquet that will affect all our bouquets,” says Metrocast Network Services promoter Nagesh Chhabria. However, he adds that there is no issue currently as Metrocast is continuing with the old model.

    “It’s an ecosystem, you cannot implement regulations in bits and parts,” says UCN Cable Network director Jagdish Paliya. However, he adds that NTO 2.0 is not very favourable for DPOs, too, as making a discount on second box compulsory is harsh on the operators.

    But what if the order comes in favour of the implementation of NTO 2.0? Here, the DPOs echo broadcasters’ view that executing it amid a pandemic would be very difficult. While approximately 15 million pay-TV subscribers cut the cord during NTO 1.0 implementation, the executive from a national MSO posed the most important question – will more subscribers drop off now?

  • NTO 2.0 hearing postponed, TRAI assures no action till next hearing

    NTO 2.0 hearing postponed, TRAI assures no action till next hearing

    KOLKATA: The uncertainty regarding the implementation of NTO 2.0 prevails, as the broadcasters’ petition against The Telecom Regulatory Authority of India's (TRAI) move to make them comply with the order by 10 August, went unheard for the second day on Friday due to paucity of time. The case has been listed before the original bench for Monday or Tuesday.

    Earlier, the Bombay high court, suspended all the hearings due to heavy rains on Thursday when the matter was listed for hearing.

    According to the sources close to the development, the bench has not passed any order at Friday’s hearing but has listed it before the original bench comprising of Justice AA Sayed and Justice Anuja Prabhudesai. However, TRAI has reassured no action will be taken till the matter comes up before the original bench. 

    While the legal battle is ongoing for a long-time, TRAI citing a regulatory vacuum released a fresh directive on 24 July irking the broadcasters who have already been battling with the impact of the pandemic. It asked broadcasters must publish details including maximum retail price per month of channels and maximum retail price per month of bouquets of channels, the composition of bouquets and also amended reference interconnected offer (RIO) and other on their website.

  • TRAI directs broadcasters to implement NTO 2.0 by 10 August

    TRAI directs broadcasters to implement NTO 2.0 by 10 August

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has directed all broadcasters to comply with the provisions of the New Tariff Amendment Order (NTO 2.0) by 10 August. Broadcasters must publish details including maximum retail price per month of channels and maximum retail price per month of bouquets of channels, composition of bouquets and also amended reference interconnected offer (RIO) and other on their website.

    The regulatory body said, “In order to promote orderly growth of the sector and to balance the interests of service providers and to safeguard the interest of the consumers, it is necessary to give effect to Tariff Amendment Order 2020 and interconnection amendment regulations 2020 without any further delay.”

    The regulatory body on 1 January, had notified the NTO 2.0 and the interconnection amendment regulations 2020. “TRAI has issued direction to all broadcasters to ensure compliance of various provision of the Telecommunication (broadcasting and cable) services dated 1 January 2020 and telecommunications (broadcasting and cable) services interconnection regulations, dated 1 January 2020.”

    TRAI has also expressed discontent over one broadcaster allegedly discontinuing its low priced bouquets from 1 August and pushing higher-priced bouquets, in violation of NTO 1.0. It has also stated that the broadcaster has not informed TRAI about such change.

    The authority has also claimed that distribution platform operators (DPOs) have complained that some of the broadcasters are not willing to sign RIOs according to NTO 2.0. Hence, many DPOs are not willing to enter into such agreements creating an overall regulatory vacuum in the industry. Moreover, it has been also stated that some broadcasters are extending old agreements with few DPOs. 

    The industry watchdog has stated that non-implementation of the NTO 2.0 is leading to chaos in the sector and jeopardising the business processes which has been harmonised after NTO 1.0 came into effect. According to it, delay and uncertainty in the implementation of NTO 2.0 will again bring back non-transparency and discriminatory practices in the sector.

    Notably, major broadcasters moved to court after NTO 2.0 was notified. While the cases are subjudice, the ongoing pandemic has delayed the judgements. Hence, an ambiguity is prevailing in the industry. And the latest notification might irk broadcasters more.

  • Zee TV rejigs show strategy; adds comedy

    Zee TV rejigs show strategy; adds comedy

    MUMBAI: After a hiatus of nearly three months, television shows finally went on the floors in Mumbai and new episodes started airing from 13 July. GECs are leaving no stones unturned to create the buzz in the market and gain back their viewer interest.

    Zee Entertainment has announced its content comeback via a partnership with its brand partners. Zee collaborated with leading brands – Nestle Maggi, Amul Lassi, PepsiCo, Red Label, Cadbury Dairy Milk, ITC Dark Fantasy to gear up the nation for 13 July, the date of its daily content comeback on Zee TV. ZEEL chief consumer officer Prathyusha Agarwal says that the idea of the teaser was not to mention Zee. According to her the campaign wouldn’t have gone viral if a brand would have mentioned the name of the channel. The idea was to get multiplier reach and audience through a teaser-cum-reveal campaign.

    Agarwal notes that TV consumption has increased by 35 per cent and the channel did a predictive analysis with Nielsen to identify where it is going to settle across genres. The biggest variable that is dictating currently is people sitting at home and people going out for work. It gave the channel a fair idea about the available audience. From being a 'woman as a unit' it changed to 'family as a unit' and brought more people together and this, for her, was the big behavioural change that got established with Covid2019. 

    “We had a Zoom call with our viewers as it was important for us to know how our viewers are feeling. It was not just about what they are viewing but also about what kind of content they are missing. Attitudes and behaviours have changed. Earlier, the day consumption chart looked like one big hump during primetime. But with Covid2019, people are spending more time at home. So there is a non-primetime hump and then there is a primetime one. So, there are more audiences to cater," she shares.

    Given these changes, ZEEL has reworked on its Fixed Point Chart (FPC) strategy to understand how it will handle primetime and non-primetime viewers. "Shifts between genres have happened and supply dictated the demand. With fresh content coming in, the channel is looking at all the genres especially comedy. The channel is trying to introduce the element of comedy in shows through characters and changes in script,” she adds.

    Apart from that, she highlights that there will be no change in programming order. The channel is focusing on creating a larger bank of episodes if there are any stop starts. There is also no change in the inventory choices, it is tailor-made as per the brand.

    While talking about advertisers' response to the new normal, she says, “In the month of April, everyone was wondering what to do next; we didn’t have advertisers. They were also not able to meet the demand on ground. But July is looking very promising. Fill rates are completely back to normal. As the demand has increased significantly in July, I believe advertisers are also keen to meet the demand.”

    The Media Ant co-founder Samir Chaudhary thinks that there will be more advertisements in the non-primetime slot now. Because of the non-travelled behaviour, viewership patterns will remain the same, but the timing will be scattered.

    He adds that inventories will remain the same but more slots will be filled. He says, “Many FMCG brands are eager to advertise as IPL and other events did not happen. But they will be looking more at news channels than GECs because in the past few months the reach has predominantly come from news. However, they will be looking at other segments to advertise.”

    Agarwal further explains that there are different kinds of market. One is where people are not able to use a certain product or they are careful about its usage and for those customers it is critical for brands to create demand. In this situation they are finding ways to trigger demand. The  biggest and active advertisers are FMCG and CPG because people are consuming it a lot more than any other category.

    She adds, “There are decades where nothing happens and then there are weeks where decades happens. In these categories you have brand loyalty that will never change. But during Covid2019 for e.g., you have ten consumption occasions. Consumers were forced to sample other brands and other product options. Hence, it became critical for brands to get back the share. If there is great product and good pricing, consumers are likely to go back. In our business consumers belong to the overdrive consumption category. It is important to get an early mover advantage to gain share.”

    Chaudhary shares that advertising rates will come down by 30-40 per cent and channels will have to incentivise the rates for advertisers to come on board. He adds that as user sentiment has changed, people are buying fewer products so advertisers will get less profit.

    He also notes that most of the brands will go with their core messaging but they might twist their ideas to incorporate pandemic in it. Brands are choosing digital mediums for long ad formats but 30-second or short-form advertisements will continue on television. 

    For Zee TV, out-of-home medium acted as an announcer media, after which campaigns were released on other digital mediums. Agarwal believes that social media has a good number of audiences and platforms like WhatsApp or Telegram can make things viral quicker than word of mouth. The channel adopts a twin strategy for most of its content.

    Zee TV’s singing reality show Sa re ga ma also started production last week. The channel is adopting a hybrid production model to ensure safety and security. According to Agarwal, most of the post-production work is happening remotely. This move has helped it to bring content robustly.

  • IFTPC thanks Maharashtra govt, producers in fast-racking resumption of shoots

    IFTPC thanks Maharashtra govt, producers in fast-racking resumption of shoots

    MUMBAI: In a major relief for all daily soap viewers, TV broadcasters will roll out fresh content from 13 July.

    Indian Film and Television Producers Council (IFTPC), in its press release today, thanked all the TV producers, Maharashtra chief minister Uddhav Thackeray, MLA Amit Deshmukh and government of Maharashtra for their constant effort in restarting film and television production. The association also thanked the Federation of Western India Cine Employees (FWICE), Cine and TV Artistes' Association (CINTAA), broadcasters and all the other vendors for their cooperation. It also expressed gratitude to Dr Sanjay Mukherjee, Marathi producer Aadesh Bandekar, Dr Shashank Joshi from Covid2019 task force Maharashtra and district collectors for their assistance.

    IFTPC in its release mentioned that due to the lockdown studios were shut. The release read, “Lakhs of daily wage workers and the workers from ancillary industries lost their jobs. The fear of starvation loomed large on the industry workers. Fortunately, with Unlock 1.0 shooting was allowed.”

    The Maharashtra government under its ‘mission begins’ initiative allowed shooting from 30 July 2020 with stringent SOP measures and protocols. In order to resume shooting swiftly, Hindi and Marathi producers introduced additional safeguard measures like arranging transportation, lodging and boarding facilities for their cast and crew. The production houses, in fact, bore the additional cost of maintaining safety and hygiene.

    The release said, “From today there will be more laughter and fun in every home battered by more than 100 days of lockdown. At a time when there was possibility of mental illness such as hypertension and depression was to affect many citizens, the re-entry of television is a big relief. Now the new stories full of drama, suspense fun and education will unfold and relieve the anxiety of Covid2019.”

    The television industry was forced to stop telecasting due to the countrywide lockdown from 22 March 2020. The entire shooting for films, television and advertisement was dispensed post government guidelines to ensure social distancing and to stop the mitigation of the SarsCoV2.

    In the meantime, more than 60 shows are being shot across Mumbai and Thane.

  • Colors shows to incorporate Covid2019-related topics for better relatability

    Colors shows to incorporate Covid2019-related topics for better relatability

    MUMBAI: 13 July 2020 is when viewers of all GECs will be able to get back to watching their favourite shows. Viacom18’s Colors is currently looking at numerous ways to engage the audiences.

    Viacom18 Hindi mass entertainment chief content officer Manisha Sharma expresses that the last few months have been life-altering for broadcasters, producers, artists, crew members and most importantly for the viewers.

    In the new episodes that are being shot, the channel is covering pandemic-related subjects and also integrating it as part of the current storyline. It is also incorporating safety protocols and precautions like sanitisation and other safety measures in the narrative to generate relatability.

    “We factored in the lag and production pace before putting fresh episodes on air. Hence, we are working against a timeline and creating banks of episodes for all our fiction shows,” explains Sharma.

    While shooting resumes, safety and security remain a major concern. The channel is being extremely cautious and strictly abiding by the safety protocols implemented by producers, broadcasters and government.

    Their priorities include sticking to the timelines, creating a pressure-free environment, keeping a tab on the daily influx of people on the sets and ensuring the same set of people are working together to keep risks at bay. Apart from that, the cast and crew members are staying in or around the campus to avoid travel hassles. Regular fumigation of sets, access to medical services, placement of sanitisers, usage of N95 masks, regular temperature checks and other necessary protocols are also being followed.

    In the absence of new content, the channel has observed a shift in the viewers’ content consumption habits too. In this phase, family viewing has gained more prominence, people turned to mythological shows for comfort and entertainment, the trend gradually picked up and the audience soon developed a palette for classics. At the same time, there was a great demand for the erstwhile shows and soon reruns started to rule the viewership.  

    She says, “As the content offerings now change with fresh episodes being aired, viewers will slowly move back to their original habit of appointment viewing. While the initial optics might be slow, we are certain that it will gradually pick up owing to the engaging storyline, highpoints, plot twists and intrigue around the characters.”

    For promotion, the channel will use a ‘Kahaani ab tak’ capsule to summarise the journey till before the lockdown. “Taking the audience through their favourite characters’ journey so far has helped us to familiarise the audience with the show once again. Additionally, along with the marketing surround sound, we are banking largely on the highpoints and various other storyline hooks to keep the viewers intrigued.”

    For now, Colors is shooting in controlled and closed environments with safety protocols. They will venture outdoors only when things get better.