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Indiantelevision.com's Digital Edge
Government regulation should look to promote freedom in the marketplace
 
Indiantelevision.com Team

(8 March 2008 8:40 pm)

 

MUMBAI: While the outlook for the Indian media and entertainment sector is optimistic, there are some issues that need to be dealt with. A key one is government regulation. There needs to be better clarity on how the industry will be regulated. If this happens, then there will be more freedom in the marketplace.

 

In addition, service providers for new technologies like IPTV need to do more to educate the customer or else there will be confusion. Also, quality of service is paramount as consumers will become increasingly fickle as they get presented with more choices.

 
These were some of the points made yesterday at the Digital Entertainment session during the Sixth International conference on communications, convergence that was organised by the IMC. The speakers were Hinduja Ventures president, corporate affairs Ashok Mansukhani, Indiantelevision.com founder, CEO and editor in chief Anil Wanvari, Indusind Media and Communications MD Ravi Mansukhani and IOL Netcom senior VP Anil Pandya.

Ashok Mansukhani noted that with new technologies coming the convergence commission needs to be revived. Wanvari countered that saying that it had been tried in the past but fell flat on its face. Wanvari also drew attention to the fact that there are regulation issues that need to be looked at. For a while now, there has been talk that one body should oversee the media and entertainment industry. That has not happened, he pointed out.

Wanvari stated that regulation should pave the way for more consumer freedom in the marketplace. So far regulation has not been satisfactory in some areas. For instance while the government had mandated Cas in certain areas it has not picked up.

Ravi Mansukhani called for the government to mandate the digitisation of cable across the country. On the issue of pricing, he noted that at the moment due, to the upcoming elections, the pricing has been fixed for channels at Rs 5 in Cas areas. The expectation is that when Reliance and Bharti launch DTH services they will shake the ground. Wanvari noted that due to the distribution quagmire, channels have to pay carriage fees upto Rs 300 million. “Is the government ready to monitor the cable system? Will it be a proactive or a retroactive mechanism?” he asked.

Another issue that needs addressing if service providers want to achieve the Wow factor is service, which Wanvari noted is not of a uniformly high caliber in the broadcasting industry. In some areas, consumers are neglected. For instance broadband connectivity speeds in many areas leave much to be desired. 256kbps is not broadband and one for instance has to wait for a while for a video on Youtube to appear.

It also does not help that there has been confusion in the minds of consumers regarding which technology is the best. Ashok Mansukhani noted that DTH operators have teething problems. IPTV has few takers. Will mobile TV work? The key to providing a Wow entertainment experience lies in service providers and broadcasters upscaling customer interfaces. Problems relating to delivery of content need to be sorted out fast or else the consumer will migrate elsewhere. As technology and entertainment choices grow the consumer will become more and more fickle he warns. The challenge for the service providers will be to create a viable business model that caters to different demographics.

In terms of the importance of consumer education and awareness, Wanvari expressed disappointment that the IPTV service providers were not doing enough to market their products. For instance, MTNL has a thousand IPTV subscribers in Mumbai. The consumer has to be educated about it. This is all the more important as consumers are simple and if there is too much choice we are likely to get confused.

Offering his view on the future of entertainment Ashok Mansukhani noted that that reduced Arpus has led to telecom operators offering video services. Meanwhile MSOs are now focussing on broadband. He sees the television landscape changing by 2010 wherein channels as we know them now will die and in their place you will have a million customized choices. Niche casting of consumer-selected shows will happen. “News, sports and reality shows will continue to be popular. Content will shift to an issue of time and choice. Broadband penetration can come in by using the 72 million cable and satellite homes as a base.”

One issue that the panelists agreed upon was that there is a place for different technologies to co-exist. At the end of the day the person who offers better services, choice, width and depth will win.

 
 
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