Broadcasters question Prasar Bharati’s role in the private sector: EXCLUSIVE

During a stakeholders’ consultation meeting, chaired by Ashwini Vaishnaw, Minister for Railways, Information and Broadcasting, Electronics & Information Technology, broadcasters suggested that Prasar Bharati and DD Free Dish restrict itself to DD channels to educate the masses. The cable TV industry has also raised various objections including advertising time on Pay TV channels.

By
  • Akanksha Nagar,
| July 16, 2024 , 9:13 am
FDI in the information and broadcasting sector increased by 87% to Rs 7,012 crore for FY24, which was up from Rs 3,745 crore in FY23.
FDI in the information and broadcasting sector increased by 87% to Rs 7,012 crore for FY24, which was up from Rs 3,745 crore in FY23.

In a recent broadcasting industry stakeholder consultation roundtable meeting, major issues and opportunities were presented. Chaired by Ashwini Vaishnaw, Minister for Railways, Information and Broadcasting, Electronics & Information Technology, the meeting saw participation from DTH operators including Tata Play and Airtel, and Cable TV operators, among others.

One of the main topics that was discussed was the creation of a level playing field.

Harit Nagpal, MD and CEO of Tata Play, in the past also emphasised that while DD Free Dish is a great channel of customer acquisition but there has to be level playing.

While the industry member raised concern that the DTH industry is over-regulated, Nagpal underlined the need for a uniform licensing regime and fair regulatory compliance across all players, including OTT and DD Free Dish.

At the meeting held on July 13th, it was put forth by the industry member that Prasar Bharati was initially established to disseminate quality content.

Nagpal raised concerns over Prasar Bharati’s role in the private sector with DD free dish carrying channels from private broadcasters. These private broadcasters seem to be leveraging higher advertisement revenue due to the extensive viewership of DD Free Dish.

Industry representatives argue that it is unfair for subscribers of other DPOs to pay for channels that are enjoyed for free by DD Free Dish subscribers. It was suggested that Prasar Bharati/ DD Free Dish to restrict itself to DD channels for educating the masses.

Stakeholders also highlighted that DTH has lost 3.3 million users over the past three years due to these challenges.

Nagpal further underscored that while DTH operators face rigorous regulations, OTT platforms operate without such frameworks. The industry suggested either extending the same regulatory framework to all or introducing forbearance for traditional distribution platforms.

The industry also urged government support to alleviate the tax burden on the DTH sector and recommended eliminating DTH license fees to ensure parity.

In the past, Nagpal, time and again has used several platforms and occasions to bring the industry’s concerns to the notice of the government and regulators and stressed the need to iron out disparities in regulation that exist in the current ecosystem.

The cable TV industry raised concern over advertisement tickers on paid cable channels.

The advertisement ticker takes up most of the space on television screens which disrupts the viewing experience for paying customers. Customers who pay for cable services expect an uninterrupted experience, similar to that of premium, ad-free streaming services.

From a regulatory perspective, there is a need to balance consumer protection with broadcasters’ revenue models. Regulators might establish guidelines on ad placement to ensure a premium, less interrupted experience for viewers, it was said.

Additionally, the cable TV industry has also raised objections to the advertising time on pay TV channels.

Industry urges that the broadcaster should take into account the extent to which increasing the number of advertisements shown will cause viewers to switch off or switch channels.

The basic business model, however, is that broadcasts are used as entertainment for viewers and these broadcasts also carry advertisements. Viewers are exposed to advertisements as a side product of their consumption of the entertainment content. The entertainment content is paid for by advertisers who use the intermediary of the broadcast company to deliver messages to the advertising firms’ prospective customers. This model may be described as “a two-sided market with network externalities” where the intermediary, the broadcast company, is a “platform” that needs to get both sides on board in order to generate revenues. However, the TV broadcast industry heavily relies on advertising revenues, it was said.

A clear understanding of the dynamics of the television broadcasting business is essential for any further regulation. Addressing these issues with clear guidelines will enhance transparency and consumer satisfaction with pay TV.

Regarding screen density, stakeholders also suggested that to address the challenges of increasing screen density and overcoming infrastructural hurdles, it is essential to streamline the procedures and minimize delays in obtaining clearances for cinema construction.

Andhra Pradesh has the highest number of theatres in comparison to other states and has 29 screens per billion population. The other southern states of India have a higher screen density and deem clearances, these procedures should be emulated by other states as well.

It was suggested that a small team could go to Andhra and study what they did in 25 years to increase screen density, it would help the govt and industry both to take their best practices and circulate across the country.

Further, sustainability practices were also discussed. Airtel spokesperson suggested innovation in digital technology through plastic waste management in hardware to support sustainability within the industry. With the proliferation of high-resolution displays and energy-intensive hardware, DTH providers must prioritise sustainability and eco-friendliness in their operations.

Industry suggested policy initiatives/guidelines on sustainability which includes adopting energy-efficient technologies, reducing carbon emissions, and promoting responsible recycling and disposal practices.

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