Regulators

CII-KPMG report proposes constitution of unified regulator

MUMBAI: The CII-KPGM report has identified ten action points for the entertainment industry and the government. The aim is to drive home the point that growth can only be achieved through a collaborative effort.

 

The report suggests that the regulatory body should look at implementing addressability in a phased manner. It should also review programming codes and censorship laws. For example, the current ratings system for films is narrow. The regulator should also define service obligations and grievance redressal mechanisms.

Also a unified regulator should be constituted. The government should consider upgrading Trai as a national convergence regulator. In this role, it should have regulatory authority over all businesses in the entertainment sector. This move would allow for consistency in regulation.

 

 

For the industry, one measure suggested is improving organisational effectiveness through focussed projects. Marging pressures will force the entertainment sector to focus on costs. To achieve sustainable efficiencies the players should focus on enhancing organisational effectiveness. They should look at inculcating the best of global entertainment industry practices. They should also look at streamlining processes by introducing measurement mechanisms. The television players should aim at implementing addressability in a phased manner.

Another point for the industry is improving yield. While traditional revenue sources should be looked at, new sources should be tapped. KPMG national industry director ICE Rajesh Jain gave the example of Disney using merchandise. "Each deal is done so that it can be exploited to the maximum," he says. It is also important for the players to review programming code and censorship laws. Channels need to conduct market research and demographic profiling to understand the consumer better.

The report recommends the setting up of a cable television subscriber information system funded by the industry. A subscriber card should be made mandatory for all cable television subscribers. This can reduce revenue leakage within the system. In addition, the ratings system should be enhanced through broadbasing the existing sample size. The tracking mechanism should be automated. The content players should also look at enhancing activity in new genres. To its credit, the Indian music industry has looked at new products to keep it afloat. These include Indi-pop, remix, fusion, folk. As far as television is concerned, genres like lifestyle, health and education are being under utilised, the report says.

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