SESSION ONE

'Let CAS happen' - urge MSO's, Broadcasters and Media agencies

In the second leg of exchange4media's Symposium on CAS - The Road Ahead held in New Delhi, individuals representing the Cable Industry, Media Servicing agencies and the free to air channels said in one voice - CAS will happen and it should happen for the betterment of consumers and the Cable TV industry.

Representing the power packed panel were G Krishnan, CEO TV Today, Sanjay Gupta, Editor and CEO Dainik Jagran, Bashab Sarkar, MD Maximize, Tamali Sen Gupta, Media Lawyer, Jawahar Goel, Director Zee TV and Rakesh Dutta, Director Globescan. The session discussed the topic 'CAS - Issues, Impact and Implementation which was moderated by Tony Joseph, Consulting Editor Businessworld.

The discussion got initiated in the backdrop of the developments in last evening's meeting between the Broadcasters and Cable operators. Rakesh Dutta of Gloescan said, "We had initiated the proposal on CAS was back in 1998 and we had mentioned to the then I&B minister Sushma Swaraj that the declaration of pricing of Individual Pay channels would hold the key to the success or failure of CAS." The prices proposed by the pay channels yesterday are not acceptable to Cable operators and the Government.

Jawahar Goel took the point further and announced, "Tiering will not be able to work in India." He further added "Had all the parties worked in close co-ordination on CAS, then it would have got implemented with 75-80 percent of penetration of Set top boxes in C&S homes."

On the question of government's role in bringing about an apt solution to the 'CAS confusion', G Krishnan of TV Today said, "In order to bring out some amount of order in the cable industry, 18 months ago all parties had together approached the government - Now they will have to listen to the government's decision in this matter." He further added that the prices in any industry are always decided by the industry itself and so should be the case in media and entertainment industry too.

The cable representatives showed grave concerns on the distribution margins and citied the examples of western markets where the margins are 60-65 percent. Sanjay Gupta of Dainik Jagran was apprehensive about the complete roll out of CAS on a national level. He said, "While the markets in Metros are fast in adapting to changing technologies, I have my doubts on it when it comes to smaller cities. Since broadcasting involves high costs and investments, I believe free to air channels would gain a lot in smaller cities."

Gazing into the future, the panelists showed optimism post CAS. Krishnan said, "CAS will lead to an increase in C&S homes. Three years ago we had 20 million C&S homes, today it stands at 40 million and three years hence it will touch 150 million C&S homes."

Tamali Sen Gupta was very optimistic. She opined, " I am very optimistic about CAS as it would lead to more money coming into the entertainment and TV Industry." Bashab Sarkar while sharing the sentiments added, "Its very evident that when anything new is introduced in the market - the consumer over reacts but later settles down. Overall CAS will have a positive outcome."

Jawahar Goel sharing his thoughts on the future of industry said, " Today our Industry is worth Rs 15000 Crores and in three years time it will touch Rs 25,000 crores." While future is very far from present day's scenario, according to industry sources, the government of India has made it clear that either the pay channels would have to come up with a realistic individual pricing or face ban post CAS. While cable operators and free to air broadcasters are all for the implementation of CAS - its not very clear as to why pay channels are not coming out with a realistic individual pricing. Commenting on the pricing Krishnan said, "I fail to understand these pricing. According to me the prices can go down as less as Two or Three rupees and it will help the channels in penetrating more numbers of C&S homes.


More Photographs