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Tag: TRAI Tariff Order

  • Ad agencies expect reallocation of budgets post TRAI tariff order implementation

    Ad agencies expect reallocation of budgets post TRAI tariff order implementation

    MUMBAI: Since the Telecom Regulatory Authority of India (TRAI) has announced its new tariff order, making it mandatory for TV channels to keep a transparent display of the rates of its channels and bouquets and providing the viewers the liberty to pay only for those channels that they want to see, there has been quite a turmoil in the worlds of those associated with the industry.

    While channels, MSOs, and LCOs are busy ensuring a smooth transition to the new regime, the advertising world is looking at a cloudy sky that only offers a lot of uncertainty towards the impact of this order on their planning.

    Speaking about the same at a recent press meet, Mindshare chief operating officer, South Asia Amin Lakhani had said, “As an industry, we have seen a lot of volatility and uncertainty in the past 4-5 years. This is also an interesting one.” He added that the industry will have to follow a wait and watch approach to see the impact of the new order on the advertising world. But he was also certain that people will not change their habit of watching TV.

    Indiantelevision.com talked to some more industry insiders to understand what the new order will mean for TV, digital and the advertising world.

    Mindshare chief digital officer South Asia Vinod Thadani reflected same thoughts as Amin and said, “Any call on the way the TRAI order will impact TV viewership would be too early. The various scenarios are yet to play out and once there is clarity on the impact on TV distribution and viewership, we will be able to take any calls on its impact on digital.”

    Isobar group MD-South Asia Shamsuddin Jasani on the other hand was sure that this new order is going to help the advertisers as they will now have a better idea of which channels are popular and thus, where to invest.

    He said, “I don’t think it will impact the ad-spends on TV drastically but will lead to re-allocation of fund by the advertisers. Now, we have an even better data of premium channels and we can thus improve the way we spend.”

    Shamsuddin is of the view that OTT might gain because of the order, “With OTT, you can track the number of users from day one. So, if advertisers use the right science (to understand these numbers), it will definitely help OTT players.”

    Update Advertising MD Sharad Alwe affirmed that the new TRAI tariff order is definitely going to impact the viewership of pay channels. He said, “The TRAI ruling will perforce make the viewer carefully select his pay channels of choice (appointment viewing) and create or select his package so that his cable subscription does not go higher than what he was paying currently. On certain channels, where he watches programming based on specific events, be it sports or reality shows, he may buy these channels only during that specific period. FTA channels & MSO/LCO based cable channels with better and relatable content will attract higher viewership.”

    But he doesn’t see this affecting the ad spends made by the brands on any of these TV channels. “These changes will impact channel rates but we do not see any negative impact on ad spends,” he says adding, “OTT offerings of the various media networks like Hotstar, SonyLiv, ZEE5, Voot might see an uptake for their selective content.”

    Mobclixs Technologies founder and CEO Dushyant Jani was very positive about the new regime making the entire broadcast framework transparent and fair. He said, “I think 50 per cent of the viewers watch not more than 30 channels but they are sold a bundled pack of 300 channels, which cost roughly between Rs 250 and Rs 450 depending on whether it is a cable connection or DTH service. When consumers select their channels, the ones that don’t meet their expectations get dropped out in the process.”

    Talking about its impact on advertising, Dushyant contended, “The drop in channels will impact the advertising revenue. For advertisers, it is wise to bet on the popular channels and obviously, the lesser popular channels will lose big on advertising revenue. However, the impact on the advertisers due to this will still be much higher as they need to cater to and capitalise on the top-selling channels but may not have enough time to plan their advertising budget.”

    Bijoor Consults Inc founder and brand guru Harish Bijoor feels that the new tariff regime is definitely a ‘jolt’ point for TV as well as the advertising industry. According to him while there are differentiated views on what impact this whole scenario will have on TV ad spends, one thing is certain that OTT is surely going to benefit in the long run.

  • Mindshare teams trained to be media neutral: Vinod Thadani

    Mindshare teams trained to be media neutral: Vinod Thadani

    MUMBAI: Excited about handling the complete integrated media directive for Hindustan Unilever Ltd , after the big digital mandate win in August last year, Mindshare Fulcrum is all pumped up about serving the best possible media solutions to the brand.

    Highlighting the key strategies behind handling HUL’s digital media presence, Mindshare chief digital officer, South Asia Vinod Thadani said, “The overall approach to digital investments for HUL shall entirely be based on the need of the brand. With the consumer and the brand ambitions at the centre, specific media neutral investment strategies will give shape to the overall digital presence for HUL.”

    Mindshare Fulcrum hopes to do some pioneering work across platforms and lead the industry in the evolution of digital media.

    Earlier, Mindshare India president, client leadership Amin Lakhani had revealed that the whole team at Mindshare Fulcrum underwent an extensive training program to run a successful integrated media campaign as per the unique requirements of HUL. Talking about the role of digital in the whole mix, Thadani noted, “The larger team at Mindshare managing the HUL media investments has already proved its capability in managing the broadcast media (TV, print, radio, etc); but, digital media due to its addressable nature has a different manner of planning, buying, and evaluation. Hence, it’s this addressable media skillset that has been the focus for the recent training. The teams at Mindshare now are media neutral and hence work across all forms of media. During the recent training, the focus on digital training has been primary.”

    On another note, Thadani also shared his thoughts on the impact of new TRAI tariff order on TV viewership saying that reaching onto any conclusion regarding this will be too early. He added, “The various scenarios are yet to play out and once there is clarity on the impact on TV distribution and viewership will we be able to take any calls on its impact on digital.”

  • DPOs say TRAI tariff order lacks value without 15% bouquet discount cap

    DPOs say TRAI tariff order lacks value without 15% bouquet discount cap

    MUMBAI: With TRAI’s petition seeking clarity on the 15 per cent bouquet discount cap being dismissed as withdrawn in the Supreme Court, distribution platform operators (DPOs) are of the opinion that the entire value chain is now bound to function like it did before the new tariff order came into existence.

    Last month, the regulator had filed a petition in the top court on the issue of 15 per cent cap on discount on a bouquet price of TV channels to consumers that had been set aside by Madras High Court while upholding TRAI’s right to regulate the broadcast sector.

    Highlighting the delay, the Supreme Court was of the opinion that the TRAI should have sought clarification on the clause while arguments were being presented in the matter last year.

    With the court’s latest act, CEO of the Chandigarh-headquartered MSO Fastway Peeush Mahajan believes that the DPOs will not be in a position to package their product, thereby being reduced to just passing on to consumers the offerings broadcasters have prepared.

    “Basically what I’m seeing is, we are back to stage one. 15 per cent clause, as per me, is the gist of the entire tariff order. With 15 per cent gone, there will now be predatory pricing. Broadcasters will keep the rates higher for a-la-carte channels and give a discount of 50-60 per cent on the bouquets,” Mahajan told Indiantelevision.com.

    Maharashtra Cable Operators’ Federation (MCoF) committee member Asif Syed concurs with Mahajan. According to him, the 15 per cent clause was in the interest of consumers as well as the MSOs.

    “If the capping is not allowed now, the problem would be MSOs won't be able to bundle all the packages. If someone wants to watch a Marathi GEC, right now there is no option wherein you can get Star Pravah and Zee Marathi in the same package. MSOs could have done that had there been a 15 per cent cap. We won't market the pay channels. Since we are not getting a good share why should we help the broadcasters? Let them advertise, let them do the hard work. There would be resistance from our side,” Syed further added.

    The DPOs point out that the problem with the pre tariff order period was that the a-la-carte pricing was very high and bouquet pricing was extremely low. In a sense, that’s the direction the industry will now be headed in.

    “As on today, we basically have an LCO and subscriber contact programme where we are reaching to the LCOs and they are further reaching the subscribers. Now there is a big resistance from the cable operators, so let’s see how this will shape up. We are trying to convince the cable operators that we have to implement the order but the actual number of consumers registered by the LCOs is unknown,” Mahajan stated.

    While the regulator failed to get a written assurance on whether the court would entertain similar pleas in the future, there’s little doubt of it seeking further amendments to the order going forward.

    “To my understanding, TRAI has withdrawn the petition. In my belief, TRAI will definitely take steps to bring about whatever amendments are required in the tariff order so that it meets the objectives. In the meanwhile, it would be better if broadcasters review their negative approach and make it friendly to consumers as well as DPOs,” Kerala Communicators Cable Limited (KCCL) CEO Shaji Mathews highlighted.

    A section of the DPOs believes that broadcasters have acted, by adopting an unrealistic pricing model, against the spirit of the TRAI order. This, they feel, has been done in order to pressurise TRAI as well as DPOs. The regulator’s objective was to ensure that rates are realistic. Broadcasters not adhering to realistic pricing models amounts to deliberately defeating the purpose of the tariff order, says an MSO CEO who did not wish to be quoted.

    The TRAI is now set to meet major MSOs and broadcasters to discuss the implementation of the tariff order on 4 January. That is when there will be further clarity on what lies ahead for the entire content distribution value chain.

  • Times Network announces new channel pricing with ‘The Times Network Value Pack’

    Times Network announces new channel pricing with ‘The Times Network Value Pack’

    MUMBAI: Times Network, India’s leading television broadcasting network, announced its channel packs in three categories – Times Network News Pack, Times Network Value Pack and Times Network HD Premium Pack, in compliance with the TRAI tariff order. With a strong bouquet of influential brands in its portfolio across best in class English news, world class Hollywood and Bollywood entertainment, Times Network’s unique proposition is a requisite for the smart urban viewers to complete their TV viewing experience. 

    The Times Network Value Pack at a compelling price of Rs. 13/- includes a strong mix of channels including Times NOW, ET NOW, Mirror NOW, Zoom, Movies Now, MNX and Romedy NOW, thereby making it a go to network for the consumers for their daily dose of information and entertainment. The other variant packs include Times Network News Pack at Rs. 5/- that includes English news channels and Bollywood entertainment channel and Times Network HD Premium Pack at Rs. 20/- which includes all SD (non-simulcast) & HD channels of the network. *refer list below for complete details of the packs

    MK Anand, MD & CEO, Times Network said, “TRAI’s tariff order is a transformational shift which will lead to a coherent framework that safeguards consumer interests and strengthen the offerings of the broadcasters. As we transition into this new phase, we see this as an opportunity that enables transparency and flexibility to TV viewing experience and benefits the entire TV ecosystem. We consistently create disruptive and engaging content for the progressive Indian consumers and we are confident that we will continue to be the preferred English network that offers differentiated content at a compelling price”.

  • Guest Column: TRAI’s radical tariff & interconnect norms will usher in major changes

    At the onset one must appreciate the efforts put in by the TRAI in coming out with path-breaking orders involving tariff, services inter-connection and quality of services. The effort of the regulator is clearly to increase choice in the hands of consumers to pay for what they want to watch.

    The TRAI guidelines are aimed at encouraging moving away from a push-based model to a pull-based one where demand and supply will be the deciding factors. Still, it’s a known fact that consumers themselves find it difficult to pick and chose, preferring packages instead. But time will tell how the Indian consumer behaves this time around. But if the industry and the government/regulator work together, a lot can be made possible. However, there are some actions that need to be acted upon urgently. In my opinion, they are the following:

    1. TRAI guidelines pre-suppose that all distribution platform operators (DPOs) have the built in capability to create packages and also bill on a la carte basis. While it might be possible for the bigger DPOs who have invested in the backend to have this capability, I am less confident of smaller DPOs. Unfortunately, for many of them digitalization was just converting analog signals to digital. Such DPOs selected weak support players resulting in inadequate capabilities in the backend, which is the heart of digitalization (packaging and bundling). For them to make adequate changes will also mean making huge investment and technology upgrade. One way to make this possible quickly and in a cost efficient way is to implement infrastructure sharing at every level keeping advancing technology in mind. And, to make this aspect possible, it’s necessary to make licensing norms amendments in the statutory regulations relating to cable TV, HITS, and DTH.

    2. As of today, the balance of negotiating power is clearly in the hands of broadcasters and, while the TRAI orders are quite exhaustive in terms of various provisions, lets us not underestimate the capability/ingenuity/creativity of the broadcasters. I personally do not think any broadcaster will absorb the DPO margins. As broadcasters have an in-built minimum return they expect from their channels, in all probability, they will add this margin to the channels’ prices. The regulator should consider setting up a mechanism by which it can review and intervene in a time-bound manner.

    3. DPOs must move away from their analog mindsets and embrace digitalization and its implications by being more honest and transparent in their dealings with broadcasters and other stakeholders.

    4. While TRAI has outlined the terms and conditions of providing TV channels to DPOs, it has been observed that commercial negotiations are fairly simpler than the legal terms and conditions. In my view, this is a result of legacy mistrust between a broadcaster and an MSO. I would, therefore, suggest that a model interconnect be prepared by TRAI, which must be the document entered into by the said parties till the industry settles down to this new environment and mutual trust develops.

    5. Broadcasters and DPOs must work together to jointly grow the business. At the end of the day, both will benefit only if the consumer pays. I think a working group comprising representatives from various industry organizations like the IBF, NBA, AIDCF, DTH Association and TRAI/MIB should be constituted along with some independent experts to facilitate the process. This should be a small group that could make valuable suggestions. Trust and transparency will need to be the hallmark for the industry to move forward and litigations must be kept out as far as possible.

    6. The government should provide more clarity on taxation issues; especially in view of the new GST regime set to be rolled out from later this year. Simultaneously, the government must seriously consider giving `industry status’ to the broadcast sector.

    7. As far as the tariff order is concerned, DPOs have an opportunity, with the different margin structures, to set their houses in order. They need to invest in the backend, introduce VAS (value added services) and look at having some unique content.

    8. From the tariff point of view broadcasters have a challenge on their hands as they know there is a price cap with restrictions on packaging (sports channels). They should seriously consider promoting events on short-term basis as there is no minimum period for subscription. We all know consumers by and large watch 12 to 15 channels. It will be interesting to see how competing broadcasters price channels in specific genres as consumers in the short-term are likely to cap their spends on TV entertainment.

    9. DPOs in smaller towns should consider forming co-operatives to work together, while at the same time retaining their individual identities.

    As a result of fresh TRAI orders, I hope there will be more discipline and transparency in the industry, which could also see mergers within platforms as this is a time to consolidate. The Indian broadcast and cable sector is on the cusp of major changes. Those who embrace change, will flourish, while the rest will slowly perish.

    public://tony_0.jpg (The author, an Indian media industry veteran, is the former CEO-Media, Hinduja Group. The views expressed here are personal, and Indiantelevision.com need not necessarily subscribe to them.)