SESSION ONE
exchange4media
Symposium- CAS issues, impact and implementation
CAS
may be just around the corner, but the average viewer
seems largely clueless about the entire exercise involving
pay channels and set top boxes. Affordability still
remains the key issue and major broadcasters are yet
to announce their La Carte price. MSO's have made
investments that run into crores for the procurement
of the set top boxes but are unsure about the demand
for the same. exchange4media through its Symposium
on CAS issues, impact and implementation tried to
bring a certain amount of clarity to the CAS situation
and tried to resolve some of the ambiguities involved.
The
distinguished panel on board included Yogesh Radhakrishnan
from Zee, Ashok Mansukhani of InCableNet, Pradeep
Iyenger of Carat Integra and Rohinton Maloo of Cutting
Edge Media. The moderator of the session was Pradyuman
Maheshwari.
Yogesh
Radhakrishnan
Yogesh Radhakrishnan put forward his views on the
implementation of CAS. Says he, " I feel that
the government is very committed to bringing on CAS,
the MSO's have also made heavy investments in the
procurement of the set top boxes and made all due
arrangements for the roll out of CAS. Apart from a
handful of broadcasters, CAS is very much a reality.
Every industry needs some regulation and CAS is a
necessity for the Indian television scene." Radhakrishnan
reveals that CAS was proposed in India as early as
1988 and it is currently operational in most countries
around the world. He asserts, " There has always
been a rift between the broadcasters and the MSO's
about the declaration of the revenues. CAS provides
a transparency to the same, which is intrinsic to
the business of entertainment. As for the consumers,
the free lunch is over. The consumers have to pay
for what they have eaten."
Ashok
Mansukhani
Mansukhani is in agreement with most of what has already
been said by Radhakrishnan, he too rejects any possibility
of CAS not materialising. Says he, " I find it
absurd that CAS is always devalued to the Set top
box regime, I also find it absurd that people are
still unwilling to wake up to the fact that CAS is
a reality. CAS is not something that is waiting to
happen, it had come into existence on 31st July when
the government passed a law and set a date on implementation."
He adds, " For the consumer, CAS is about providing
a great deal of choices. You get 70 channels for Rs.72-
what can be cheaper than that? The consumer is given
the choice of opting for what is relevant to him."
Mansukhani cites CAS as a natural development for
the entertainment industry and deems it as a necessity.
Pradeep
Iyenger
Pradeep Iyengar states, " CAS is essential to
the media industry because of the transparency and
fair pricing that comes into play. Advertisers seek
the best deals and
the transparency factor would add a lot more value
to the advertiser's money. Though CAS needs to be
implemented, there needs to be a certain amount of
clarity in its entire roll out. For example, is there
going to be any third party that is privy to the data
generated via set top boxes?" Iyengar asserts
that the Bombay and Delhi markets were going to be
widely impacted by CAS and the key issues were about
maintaining reach in the markets and a possible reallocation
towards other mediums.
Rohinton
Maloo
Rohinton Maloo, Cutting Edge Media believes that regulation
of any kind is a necessity, but if CAS has been born
to control pricing, it had quite failed in its objectives.
Says Maloo, " If CAS is about providing choices
to the viewers, it fails in its efforts. At the end
of the day, it is a far more expensive deal for the
average viewer and it restricts him from viewing certain
channels. The implementation of CAS is something beyond
the obvious. With the arrival of cable and satellite
channels, the government had far lesser control over
the visual medium. CAS could be a way for the government
to exercise control over various television channels."
Maloo adds, " After the initial transition period,
there is a distinct possibility of broadcasters hiking
up their rates. There is nothing to stop them from
doing that. If that possibility arises, the whole
argument about providing greater choice to the viewer
goes hay wire."
Mansukhani
addresses Maloo's arguments when he says, "It
is natural for the government to be concerned about
the growing discontent amongst the cable operators,
MSO's and the broadcasters which has resulted in a
number of black outs in the past. A form of regulation
is long over due. SEC 4 A has definitely not been
used by the government to exercise control over television."
He adds, " It would have been a case of exercising
control if the government were fixing the rates for
the broadcasters. But the broadcasters are at liberty
to fix their rates and they exercise complete control
over the content that is aired on their channels."
Radhakrishnan
refutes Maloo's stand as well. He asserts, "
With CAS, the consumer only pays for what he views
and he is privy to a greater number of channels as
well. The affordability factor has been addressed
by the MSO's too, today you can get a set top box
for as cheap as Rs.999. And the viewer gets 72 channels
for just Rs.70. It provides greater benefits to the
viewer. Plus in the CAS scenario, the content would
be the key deciding factor, which would bring in better
programming."
What
is the mood at the Indian Broadcasting Foundation
at the moment? Radhakrishnan who is a member of the
same states, " It is a known fact that most broadcasters
are not happy with the arrival of CAS. Differences
of opinion persist amongst the broadcasters and there
is an inability to reach to a consensus. But most
are in the process of accepting that CAS is going
to be implemented and are trying to get their act
together."
With
the onset of CAS, would Indians be in a position to
access new channels? Mansukhani answers, " Most
of the foreign broadcasters are waiting for a smooth
roll out of CAS in the Indian market, so that they
can make package deals. With the arrival of set top
boxes, we would be looking at providing viewers with
new channels."
What
kind of a penetration are we looking at? Mansukhani
states, " We could see a penetration of 25%-30%
by 31st March and a 50% penetration after the initial
period. But in order to bring out the pricing for
the viewers, the broadcasters have to announce their
rates first." Radhakrishnan believes that if
three of the remaining broadcasters decide to go pay,
nearly 72% of the total population would opt for a
set top box.
Lastly,
Mansukhani rejected any possibilities of a third party
being privy to the data collected via set top boxes
and stated that confidential information concerning
the broadcasters would not be made public in any way.
The
First session of the exchange4media Symposium tried
to bring the believers and the non-believers on a
common platform. What is the central idea behind the
implementation of CAS? Is it about fair pricing and
varied choices? Or is it about the central authority
exercising some amount of control over the visual
medium? One can only speculate about the possibilities.
But the undisputed fact still remains that CAS is
real and alive and there are no two ways about it.
