Tag: Cable & Satellite

  • Large US broadcasters to profit from DTV bill: S&P Equity Research

    Large US broadcasters to profit from DTV bill: S&P Equity Research

    MUMBAI: With the growing likelihood that the US House and Senate will pass the Digital Transition and Public Safety Act of 2005 early next year, Standard & Poor’s (S&P) Equity Research forecasts that large media operators may be in the best position to exploit the many opportunities the new legislation creates.

    The announcement was made on Standard & Poor’s MarketScope, the firm’s electronic platform for financial advisors and asset managers featuring intra-day market commentary and independent investment research and analysis.

    In effect, the current bill wending its way through both houses of Congress sets a Digital Television (DTV) “hard date” of 17/2/2009. By that time local TV broadcasters would surrender analogue broadcast spectrum to the US government. This process could fetch over $10 billion in a public auction.

    Standard & Poor’s equity analyst for the Broadcasting, Cable & Satellite industries Tuna Amobi says that the final Bill may also include a pro-consumer provision on the potentially thorny issue of government subsidies for digital-to-analogue down converter boxes for qualifying US households.

    In terms of impacts on specific companies’ fortunes, Amobi suggests that these developments will continue to favor larger media operators. “Local TV broadcasters that are part of media conglomerates such as Disney Viacom and News Corp’s Fox TV, mostly with leading O&O stations in major US markets, are well-positioned to negotiate adequate “in-kind” compensation, including further launches of branded cable networks, or increasingly, forced carriage of multiple digital streams.

    Amobi states, “Conspicuously missing from the proposed DTV Bill is the intertwined issue of digital ‘multi-cast must-carry’ — which would address the pre- and post-DTV mandate
    for cable carriage of dual analogue/digital broadcast signals, as well as multiple digital streams from local TV stations.”

    Still, with a total of $1.5 billion designated to subsidise what S&P estimates to be over 20 million US homes relying exclusively on free over-the-air broadcasting, combined with 35 million or so analog cable homes (in many cases several homes with multiple TV sets), the proposal could fall short of insuring an orderly transition.

    While the US cable industry scored a key win with a favorable FCC vote on digital multicasting earlier in 2005, the issue is likely to resurface on the Congressional agenda in 2006, perhaps through a separate Bill or an Appropriations amendment. Over the course of the DTV transition, however, Amobi expects local TV broadcasters to increasingly attempt to extract additional revenues from cable operators,
    through increased “cash-for-carriage” demands for retransmission consent.

    S&P believes that not all operators will do as well by the legislation. Amobi predicts a possible squeeze for smaller cable operators such as Mediacom, RCN, Insight or Cable One, and similarly for independent local broadcasters such as LIN TV, Young Broadcasting and Hearst Argyle – many of who now already face declines in network compensation, amid tepid growth in traditional ad revenues.

    “Furthermore, bigger cable operators such as Comcast, vertically integrated Time Warner or well-clustered Cablevision, with relatively manageable spectrum constraints, are likely to face relatively minimal DTV or retransmission consent exposure,” adds Amobi.

  • Animax ahead of game on distribution in Asia

    Animax ahead of game on distribution in Asia

    NEW DELHI: Animation channel Animax has exceeded Sony Picture Entertainment (SPE)’s first year expectations with a current cable & satellite distribution base of 16 million in Asia with much traction seen in India on the One Alliance bouquet.

    “To SPE also expects that it would be able to breast the target tape for year-ending 2005, which is at the 20 million mark, with a further addition of 400,000 subscribers by the year end, according to Todd Miller, managing director of Sony Pictures Television International, Asia and Sony Pictures Entertainment’s (SPE) network channels in Asia.

    Miller, who interacted with the Hong Kong based research and analysis firm Media Partners Asia (MPA) sometime back, to discuss the success of Animax and action channel AXN in Asia, feels that the costs for Animax are scalable since it leverages the existing AXN infrastructure.

    This gives Animax the ability to provide five unique and dedicated programme feeds in Asia (Hong Kong, Japan, Taiwan, South-East Asia and South Asia, including India)
    in a cost-effective manner.

    But SPE is not looking at a quick break-even, which will be several years away because of the considerable upfront investments that have been made and would be made to provide high customisation. Still, Miller feels that this
    is in line with typical economic models of pan-regional cable & satellite programme networks.

    Research conducted by Nielsen in Indonesia reports that within half a year, Animax has become the No. 1 service among all international channels on cable MSO Kabelvision, with 7.9 per cent share of viewers.

    Though the current business model of Animax tilts towards subscription, Miller, during the interaction with MPA, expressed the hope that Animax would move towards a dual revenue stream over a period of time.

    At present, the SPE strategy is to secure distribution amongst households, then build on advertising. Miller said that viewers tend to be heavy consumers (more than
    eight hours per week) who will definitely pay for the channel, and even switch cable operators to get the
    service.

    Korea is a market that SPE is looking to expand into for Animax and AXN. However, the challenge is to work out the economics while meeting the country’s broadcast requirements. Under current regulations, AXN cannot participate in the Korean ad market as a local programme provider and replicate the programming format of movies, series and reality shows that make the channel so popular in Asia, Miller told MPA. For Animax, there are restrictions on Japanese content. So we (will) have to thoughtfully
    navigate these issues.

    AXN is now fully distributed in South and Southeast Asia (31 million households) with double digit growth rates, an equal balance between subscription and advertising revenue streams and has moved past breakeven, Miller said.

    Strength in ratings is maintained through continual investment in first run and original programming.

    According to Miller, SPE recognises the importance of customised services and introduced a dedicated Hong Kong/Thailand feed earlier this year, which has resulted in improved performance in the markets.

  • ‘We want to increase the interest of viewers in German topics ‘ : Angelika Newel Distribution Executive DW Asia

    ‘We want to increase the interest of viewers in German topics ‘ : Angelika Newel Distribution Executive DW Asia

    Deutsche Welle (DW) Television entered India in 1996. A niche channel, it has been perceived as a channel only for the German speaking audiences. But the FTA channel is slowly spreading its tentacles in all economic centers in the country, determined to put across the European point of view. DW Asia Distribution Executive Angelika Newel was in the country recently to bolster the channel’s reach through a twin strategy of targeting cable ops as well as hotel chains. She spoke to Aparna Joshi and Harish Patil of indiantelevision.com on the prospects of the channel. Excerpts from a conversation:

    What is DW’s objective in increasing reach in India?
    DW is a public broadcaster with an obligation to present a comprehensive and extensive picture of political, cultural and economic life in Germany and to explain the German view on important international issues. The channel is basically a news channel with an independent view. If the cable ops are to be believed, DW TV reaches 7.1 million households in India, of which 2.1 million are in Mumbai. Delhi accounts for 920,000 households and Kolkata for 550,000. Pune, Nasik and Kerala each account for over 200,000 households.

    What is your revenue structure?
    We don’t have many advertisements on the channel. Our earnings come from licensing fees. In India, we are free to air on Asiasat2. In India, we have ads put out by Allianz Insurance and a German beer manufacturer. However, there are time slots that are kept for cable operators to insert local advertisements. This is yet to pick up, however.

    We are concentrating on educated and cosmopolitan viewers in big cities and towns and cities like Mumbai and Pune to start with.

    What is the market size in India and what your distribution strategy?
    There is a limited German audience in India – hardly 4,000 German people in India, and something like 80,000 more who know, learn or are interested in German and so are potential viewers for DW.

    However, we are concentrating on educated and cosmopolitan viewers in big cities and towns and cities like Mumbai and Pune to start with. As far as the initial response goes, it has not been encouraging. We are planning to reach 80 per cent of Cable & Satellite homes in Mumbai and Pune. In Delhi, we will try to reach to 70 per cent of the cable homes.

    For distribution we are looking at two main sources i.e. cable operators, and a DTH platform. We are also pushing for tie-ups with major hotel chains. We have already signed an agreement with the Taj group of hotels which entails the transmission of the channel in all its establishments.

    How does programming on DW differ from that on other foreign channels?
    DW TV is governed by a board of seven persons, which is elected by social groups in Germany; this group decides the kind of content that goes in. We do have news programmes, but try to maintain a focus on science, technology, media and education. There’s Newslink, a weekday European focused current affairs magazine.

    The Africa and Asia Pacific Reports provide specialist coverage for these regions, including bilateral issues. In the past, Doordarshan has also bought programmes from us on science and technology. We also maintain a balance of 12 hours of English and German programming on the channel, so we reach out to a wider audience. In fact, DW radio programmes on science, language and agriculture are also being rebroadcast by AIR by translating them into Hindi, Bengali and other languages.

    We are a government recommended channel in Pakistan, as our view is considered impartial, as against certain other foreign TV channels.
     

    How is the channel doing in the rest of Asia?
    In Pakistan, we are doing extremely well. We are, in fact, a government recommended channel as our view is considered impartial, as against certain other foreign TV channels. In fact, we have a two and half hour slot on the public broadcast channel as well. As of now, there are no plans to extend the service to the rest of Asia.

    What are the channel’s plans for the short term?
    Future plans in India are, in general, to increase the number of households with a certain focus on the big cities. So we have decided to penetrate mainly into networks in Delhi, Mumbai and Bangalore to have a nearly complete coverage in cable. Along with this, we want to increase the interest of viewers in German topics by making concrete marketing actions in these cities.

    India apart, we are launching the 24 hours German TV, a German language channel for overseas viewers, in the US from March 2002. An encrypted channel, it will be subsequently also launched in South America and Australia. German TV offers the best in programming from Germany’s public broadcasters and is a very good demonstration of the quality of European television productions. The agreement signed by DW and GlobeCast, US, will hopefully pave the way for transmissions via the Ku-band satellite TelStar 5 for direct reception and the C-band GE-1 satellite for cable feeds. The DW agreement is valid for seven years.

  • TRIPPING OVER THE TRP TRAP

    TRIPPING OVER THE TRP TRAP

    CNBC’s revelations on possible “rating fudge” are significant since priorities of television in India are set by Television Rating Points (TRPs). “Stunned”, “shocked” and “damaging” are some of the reactions of TV channels. Certain hype on TRPs has been all across and as if they are sacrosanct. That is why the expose acquires the proportion of a “scam”. But it is a wonder that despite a “TRP Trap” television in India has been under for some years, the intricacies were not brought out for public attention much earlier. Considering the consequences, the revelation should be viewed as a wake-up call in the industry

    This is not the first time that allegations of “manipulation of TRPs” have been made. This time, however, vulnerability of the system being followed has been substantiated such a way that larger public attention is ensured. TRPs were being taken for granted as a “universal yardstick” by media buyers, broadcasters, media, media users and by development planners at highest level in the country. Advertising agencies and advertisers have been doing their campaign planning and apportioning television spend amounting to some Rs 40,000 million primarily based on such weekly “ratings”. And, newspapers were busy hyping the “rating claims” by channels and content producers

     

    And yet there is hardly any analysis in the media what these TRPs are all about as to at whose instance they are being compiled, with what kind of methodology and with what reliability, and as to their very relevance in the context of changing media scene and unique viewing situation in the homes.

    That these ratings are only projections and for only a select few cities and based on a small sample of “representative” TV households was not convincingly explained. The pattern of selecting television channels, viewing programmes, timings, etc are measured with the help of a “people meter” installed in those selected few TV households. The general impression often given is that these ratings are national and represent total “TV owning households” in the country is not fully correct. At best one could dare to say that they are indicative of viewership in metro and major cities. Neither of the two rating services cover rural India. In fact, they cover only half of urban India. Starting with four metros about five years ago, the ratings today cover 29 cities with some states/ languages being covered by only one city

     

    The peoplemeter being used was developed for relatively homogenized societies and cultures such as Canada, USA or South Africa and in fact, these meters were initially imported from these countries, mostly used ones. The buttons on such a meter in each sampled TV households are expected to be pushed by each viewer as per his or her viewership. That is each viewer in the household is expected to be an “active” one to push on and off of the button each time something on TV is being watched.

    The sample size of TV households covered with peoplemeter started with 400 has now gone to 3454 in the case of TAM and 4405 in the case of INTAM. The sample size in the case of some cities is around 120 and in the case of Mumbai it has been maximum – today it is around 600. In these sampled panel households every member is expected to maintain strict confidentiality and factual in doing “on and off” of the button of the meter without any inducement, or any pressure and each member is expected to use only the assigned button on the meter for her or him and do so each time of viewing during a 24 hours period and every day as long as the house is a member of the panel. Each such sampled household is expected to represent several thousands of TV households or cable & satellite TV households.

     

    Any aberration in doing off and on of the button, or any passivity in the process of any one member in the household will vitiate the projected ratings one way or other. If a few households in the “panel” of sample could be induced with incentive as is being done, the outcome is nothing but a manipulated one. The actual representative weightage of a household in a particular socio-economic category is another issue.

     

    Spread of television to nook and corner of the country and of regional language channels, has changed the scope and extent of viewing. And yet rating service is not extended to rural and small towns, despite 60 percent of TV sets being there. Also, since nearly 60 per cent of television sets are old black and white ones, reliability of accuracy of sensing device of people meter is doubtful in capturing the viewership. Then, of course of the fact that spread of channels is not uniform across in different regions of the country. All this brings out inadequacy of rating methodology presently being followed. As a result channels having more viewership in rural or among certain sections are disadvantaged in the ratings. That is ratings based on urban viewership are deciding the programmes and programme schedules of TV channels, including of Doordarshan. Certain phenomena of TV being used as a decoration like a “wallpaper” in some households where “on and off” is not always related to actual viewing, or extent of viewing, is yet another issue.

     

    The contents of peoples meter are projected by desegregating the figures into several socio-economic-demographic classifications converted into a matrix of some 64 cells is another contentious issues in terms of accuracy levels. That is how, competing channels, often end up using these ratings to their own advantage picking up from out of these several variables. This is further complicated from the fact that there are two rating services in the market sometimes widely differing from each other although both use similar methodology and cater to same interests.

     

    Both these services, TAM and INTAM, each charging anywhere between Rs 500,000 to Rs 5 million as annual subscription (depending on the turnover of the subscriber), are driven by the interests of advertising. Since advertising is primarily based on perpetuating and pampering consumerism, rating service too caters to such interests. That is preferences and priorities of TV channels and their programmes, their time schedules and formats, commercial tariff, etc are all moderated by and based on these ratings. The two agencies are now engaged to merge rating service and perpetuate tyranny of ratings on Indian television. It is unfortunate that, not realizing all this, Doordarshan got into this trap and lost its direction and priorities when it supported TRPs despite this author’s efforts otherwise a few years ago.

     

    Such ratings do serve in giving a “logic” for media planners to justify their large dispensations total of which works out to some Rs 80,000 million yearly. Hence the need for certain transparency in methodology and some independent monitoring and validation procedures. Routine replacement of a 10 per cent of sample over a year is too little to ensure reliability of rating or to cope with passivity and casualties in sampled TV households week after week.

     

    Since ratings are now “guaranteed” weeks before to lure advertising, obviously implies that these ratings are a matter of survival for advertising agencies, content producers and to channels themselves. The kind of competition between them is such that it will intensify and lure them further. Obviously, organizations like Indian Broadcasting Foundation (IBF) should take initiative to bring in some discipline. Self discipline any day is far better. The task of validation of ratings should not be left to users alone. In my opinion no one having interest, directly or indirectly, in advertising or media business, be entrusted with such a task. They should however be associated with the exercise.

     

    The architecture of people meter and its practicality, once the scope is extended beyond cities, is yet another issue that needs to be looked into. So that we have state of art technology involving imaging and intelligent processing which allows direct measurement of actual eye contact and reduces tampering chances

     

    Despite week after week these meter based ratings are being pronounced how much do we know about the “impact” of television on any section of the country?. For example, on children? On a rough estimate the money involved between the two agencies, bringing out TAM and INTAM, is not less than Rs 1,000 million yearly.

    Recalling my own experience of bringing out the first ever National Readership Survey (NRS) report and the fourth one, I know what kind of resistance and pressures one face in revealing facts not palatable to subscribers who are under constant threat from each other. What an effort for scratching the surface or shall we say for hijacking the priorities of television and its very character?

     

    The author is Chairman, Centre for Media Studies, New Delhi. He can be reached at nbraocms@vsnl.com

    (The views expressed in this column are his own and indiantelevision.com will not be held responsible for anything contain therewith.)

  • Sweet music for ‘etc’

    Sweet music for ‘etc’

    The Seven of the top 10 programmes among the music based channels are blaring from the stables of etc, a company press release said on Thursday.

     

    According to INTAM reports for the period 19 February to 25 February in all India 4+ Cable & Satellite (C&S) homes, the shows of etc have superior channel share compared to other music based channels. Bhakti Sangeet – a compilation of religious songs – on etc tops the table with a channel share of 1.45. Bhakti Sangeet is telecast every day at 7.30 am.

     

    Rounding up the top 5 are another four etc programs – Mix Masala, Bhakti Sudha, Bollywood Bazaar and Pop Unlimited, the release says. MTV’s Cinemascope comes at No. 6. This is followed by Once More (etc), Geet Gata Chal (etc), Just request (B4U) and Baar Baar Dekho (MTV), it further adds.

     

    In 15-minute day-part reach category etc’s reach is 5.62, followed by MTV (4.7), B4U (3.21), Channel [V] (2.88) and ZEE Music (2.7), the release goes on to say.

     

    Talking about etc’s lead, Pradeep Dixit, CEO etc says: “The recent figures of INTAM prove the fact that whether it is film music, pop numbers or religious songs, it’s pure unadulterated music that has more takers than mindless shows with VeeJays babbling about everything but the music. Bhakti Sudha and Mix Masala – the top grossers are music compilation of sensible and good music.”