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Thursday, March 25, 1999

DTH -- Does DD have any expertise in this area? 

Anil Wanwari  
The group of ministers on direct-to-home (DTH) television is supposed receive the information and broadcasting ministry's note on DTH this (or is it next?) week, or so I&B minister Pramod Mahajan has led us to believe. It has been reported that DD has advocated a five-year monopoly for itself over DTH out of the 15-year licence period. It also says it can set up the venture in partnership with whosoever it wants.

Uplinking will likely take place from India. It wants control over the subscription management system. This apart, the code on programming for satellite television will also be applicable to DTH television.

A Broadcasting Council of India is to be set up to address complaints relating to violations of the code. Finally, no decision has been taken on foreign equity holding to be allowed in a DTH operation. What is not clear is if the broadcasting regulatory authority will be set up, and, if so, when?

One is unsure on what grounds DD is seeking a monopoly (read: A stranglehold) on DTH for fiveyears. DTH television is not like a terrestrial broadcasting service. You set up a network of transmitters and beam out programmes at a particular frequency. Consumers buy an antenna from the neighbourhood electrical store; have it set up on the terrace and then watch the fare that is dished out free-to-air.

DTH television is a consumer-education and marketing intensive business. This apart, there is the logistics of subscription fee collection. DD doesn't have any expertise in this area. It doesn't even collect a television set licence fee any more. In fact, its ill preparedness to handle satellite television was evident from the way it has been managing DD Sports.

On launch day, it was visible on practically every cable TV network in India. Day 2: It was off. It has been unseen in a majority of cable TV networks ever since. The reason: Cable TV requires servicing of your distributors (read: Cable TV operators), like any other consumer product business. DD, has no expertise nor any experience in thisarea either.

DD also doesn't have enough programmes to excite consumers to consider opting for its DTH service. It's all right for DD to partner a DTH wannabe like ISkyB or Zee TV or C Sivasankaran. But to go it alone; that's a no-no.

It's all right for DD to have some say in the subscription management system to protect the interests of insecure politicians; total control is also a no-no. It's all right for the I&B ministry to want a small percentage of the revenue that a DTH operator collects from subscribers; high licence fees are an absolute no-no. It's all right for DD or a section of the I&B ministry to have an initial regulatory role to get DTH television going after a long holdup; but role for the long term is another no-no.

It is essential that an independent regulatory authority be set up to take on the headache. Otherwise, even this new emerging business opportunity will end up in a mess like the telecom sector has, and the internet service provider business is threatening to become.

Theeternal youth

It did not live up to the hype it received and the promise it seemingly showed. The MTV-Brand Equity Youth Marketing Forum held on March 19 was to this writer a major disappointment. That's despite an impressive panel of speakers. Names that have become legendary not only in India, but in the entire Asian region. McCann Erickson's Dave McCaughan, Pepsi's Vibha Rishi, market research veteran Rama Bijapurkar, and marketer supreme, the great Shunu Sen.

Of course, there were other speakers too: MTV researcher Sangeeta Gupta, Quest's Indrani Vidyarthi, film maker Prasoon Pandey, Bajaj Auto's RL Ravichandran etc etc. The seminar threw up no new insights on youth marketing. The speakers appeared to have put in very little effort behind their presentations. One has seen better presentations from management trainees. They contradicted each other on what the Indian youth is all about. One walked away from the seminar with no further knowledge. No new learnings. Quite a few attendees commented tothis writer: "It was so much better last year." Probably, because it was the first time a seminar of its scale was being organised around youth marketing at that time. That's why this year, the fare on display seemed so stale.

Listen to some of the clever speak at the seminar: "There is no difference in the youth from the interiors and the youth from the metros. The guy in Madurai has a lot of money but he doesn't know where and what to spend it on." "We don't know enough about the Indian youth." "The first choice of Indian youth for foreign travel is Paris." "Indian youth are seeking independence...they are always in a hurry? They are extremely money-oriented.. they are not very traditional..."

"Indian youth are not at all like that. They are seeking acceptance from peers? parental approval.. and desire to be accepted by adults? They still go by traditional value systems, they are laid back..they are the self-confidence generation."

"To communicate with the youth, you have to come up with somethingnew, a childlike freshness." "The Indian youth are not a niche market..they are a mass niche..they are a big market."

The seminar definitely did not live up to the high standards of wackiness that MTV India has set for itself. At least in terms of programming and marketing.

One was thankful that one didn't pay to attend the seminar, like several others did that day. Hopefully, MTV India will put some money behind research during the coming year to give us a good picture of the Indian youth as a whole, the rich, the middle class, the poor, in urban and semi-urban and rural India. And not just use statistics based on responses from some richie-rich kids in the metros and larger towns.

MTV India's survival in the future may well hinge on it. Not on half-baked seminars in partnership with event management companies and newspapers.

The writer is the editor of The Indian Cab&Sat Reporter. Feel free to email with your comments to television@vsnl.com or television@hotmail.com

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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