How often do we pause and ponder about industry issues that have a bearing beyond just our rigmaroles? Share insights that can further the common understanding? Or, at the very least, point at things that need to be set right. View Point - an exchange4media platform, will fill this void and become a source of understanding, action and perhaps some inspiration.
Do not divide - and rule!
Premjeet Sodhi, Senior Vice President, Initiative, Lintas Media Group
2007 will test the ability of broadcasters to serve compelling and interesting delicacies to the viewer. If broadcasters fail to appeal to viewers’ palate, the risk of losing them will be high. And, if a viewer avoids a channel in his/ her daily dose of entertainment, it will grow lean on a diet of low fat advertisers.
For consumers, preparation of multi-cuisine entertainment that began with a resurgent DTH segment in 2006 will continue adding mouth-watering delicacies in 2007. This transfer of control, choice and convenience of consuming digital entertainment has begun for the viewer with the implementation of CAS in South Mumbai, South Delhi and Kolkata metropollitan area.
However, while consumers oscillate between DTH operators and MSOs, advertisers are anxious about falling reach of their media plans during the initial phase of CAS implementation. So if you are worried about gaining calories from your diet and losing some from your media plan, please note following :
Your plans in North West East (NWE) markets (excluding Orissa) will under-deliver from 8-18% depending on the genre mix of plan and ratio of pay & FTA channels in the plan
Total number of HH affected by CAS: Approximately 2 million. This is 25% of the satellite HH in the three cities of Mumbai, Delhi & Kolkata
Total Satellite HH in Delhi, Mumbai & Kolkata*
% Satellite HH in South Delhi, Mumbai City & Kolkata MC**
Total immediate potential for set top boxes
Share of TAM sample HH (till Dec ’06) in Mumbai, Delhi & Kolkata -- 26% of all India & 42% of NWE markets (excl Orissa). Hence, expect plan deliveries to get affected by 6.5% (25% of 26%) at an all-India level and by 11% (25% of 42%) for NWE markets
Latest TAM data show the NWE market deliveries to be affected in the range of 8-18% depending on the genre mix selection
TG : CS, 4+ years; Period : 26/11/07 – 23/12/2007; Days : All days, 0200-2559;
Markets : NWE (Excl Orissa)
The above reduction in shares will happen only for pay channels. The big assumption is that none of the HH in the CAS zones subscribe to a set-top box. But there have been reports in media that 10-20% of the homes have adopted set-top boxes within the first week of CAS rollout. The extent of impact will be reduced to this extent. Also, the shares above are generalized at a genre level and may vary for individual channels.
However, with the consumer exercising his/her choice of individual channels, viewership will be directly impacted as no floating audience will come on to the channel that the consumer has not subscribed to.
Further, one must note that TAM distribution of peoplemeter HH is being revised from
January 2007. With this change the share of sample HH in the three cities will come down from 26% to 20% at an all-India level and from 42% to 30% in NWE (excl Orissa) markets. Hence, the extent of decline in viewership may get further reduced. It will be difficult to gauze the exact impact of CAS on overall deliveries due to this change.
To look at a holisitic picture, please remember that the CAS affected areas have only 5% of the total Urban Satellite HH. However, the question is of purchasing power parity. These 5% HH may account for significantly higher proportion of expenditure by Urban India (especially for premium products). For any brand it still means a reduction in exposure to only 5% of the Urban India satellite channels viewing population. Life does not change dramatically for mass products.
According to reports in media, it seems that the demand for set-top boxes may not be immediately met by the combined efforts of MSOs and DTH players. The anticipation was that the deadline for implementing CAS might get pushed back. Further, there will be a lag from the time players actually acquire set-top boxes and to the time that these boxes are activated at consumers’ homes. DTH players may divert the boxes from other regions in the country to the CAS zone 1 areas to meet the demand.
However, manpower constraints will still restrict players from meeting the demand immediately
To summarize, if you are seducing your consumer with a mass brand, provide it with some aphrodisiacs of other media. However, if metro is the harem for your premium brand, your media plan will be low on libido (may just have been CAS-TRATED). You are advised to immediately take liberal doses of print, radio (FM) & Out-of-home media.