The broadcast industry is in a state of flux with the cable digitisation process currently underway as well as the clash between broadcasters and TAM Media over the TV ratings system in the country.
exchange4media got in touch with Kartikeya Sharma, Managing Director, ITV Network to know his views on the currently developments in the broadcast industry in India and the long term implications. In this interview, Sharma speaks candidly about the TAM ratings system, the importance of including the LC1 markets in the ratings, the aftermath of the digitisation process, the road ahead for ITV Network and more…
It’s been more than three months since the implementation of DAS II, have you achieved what you had targeted as a broadcaster?
As far as digitisation is concerned, it’s guesstimated figures at best, but the industry is on the right track. We are not there 100 per cent, but definitely majority of the ground has been covered, say around 70-80 per cent.
DAS I was relatively easier because it was limited to the four metros. DAS II was definitely a much bigger task because it involved a large number of cities. The real challenge will be DAS III as the area covered is bigger and I don’t think it can be done in the manner the way it was done for DAS II.
The market conditions from a distribution point of view for a broadcaster will definitely throw new opportunities. As a broadcaster, what digitisation brings is an equilibrium platform, which allows the content to be gazed on the value that it brings and not purely by the positioning and placement of a channel.
What do you have to say about the recent controversy over TAM versus broadcasters?
I think this dispute has been there for a long time it. There is only one currency we have at present, and that is TAM. Because of digitisation, there are changes in TAM and I feel that brings more volatility in the system. The bulk of the disagreement is about which markets to be included, whether LC1 markets should be included or not, and should the sample size be increased.
Are you happy the way TAM is performing?
It is not about me being happy as a broadcaster; for lack of a better option, yes, I am satisfied.
Within a few months, BARC will come into place and there are also indications that the Government might start their own ratings system. What is your view on this?
I have heard that many times and I feel it is easier said than done. We will evaluate BARC once its system is in place.
TAM is a currency which is used by both advertisers and broadcasters. How can we afford to do without it when we don’t have another currency in place? We will see if BARC’s system is as tangible, when it comes into being; but that is a big ‘if’. But in the absence of that, there is no other option available.
What about the LC1 markets? Are you happy with the weightage that TAM has given to these markets?
As a broadcaster, we have always wanted better representation across the markets. I run multiple regional channels in the Hindi heartland. I think it is extremely important that LC1 should be taken into account. It is relevant when there are further tools available to know whom you are going to address and how you would address them. I advocate that LC1 markets should be included because they give a better representation of market.
What significant changes do you want in the way TAM functions?
It is ideal if they can increase the sample size. The number of people meters had to be definitely increased to give a better cross-representation. LC1 markets should be included as it is an extremely important segment. I think transparency must be there.
How is the regional market performing?
The regional market is doing well and it will only get stronger, especially in the news and entertainment genres. The markets that have a linguistic advantage will actually grow even further, while the ones that don’t have a linguistic advantage will not have that big an advantage. News will grow in the regional space and that is why it is so important to have LC1 markets as part of the ratings measurement. Regional market is going to unlock value in areas where the TV industry has not thought that there is value.
The 10+2 ad cap will become applicable from October onwards. Do you think the timing is ideal?
I think it is rather unfortunate that such a cap is being implemented. This is particularly so for the news industry more than the GEC or other segments. As it is the news industry is struggling with revenues. Such a cap will make it extremely difficult for the news broadcast industry as a fertility ramification of it would be that all those channels, which have full inventory and large inventory advertisers, will look at more viable options. What I don’t understand is how people will bridge the gap between the quantum of inventory that they are using and the percentage of yield purpose. It will affect those channels that have done long-term deals.
According to you, what should be the ideal ad cap?
14+2 should definitely do, anything more than this would be ideal. There should be some sort of understanding as to how the industry will face this. It’s an extremely difficult position for the news industry because advertisement is the primary source.
The Government is planning to increase FDI in the news sector from 26 per cent to 49 per cent. What is your take on this?
It’s a very positive development for the news industry, something that the entire industry has been waiting for it. This will definitely make many business projects in the broadcast industry viable.
What are the key focus areas for ITV Network in the times ahead?
Everything is going as per our plans – both regional and national. We are performing well and are happy that we are delivering accordingly. ITV has plans to grow in the broadcast side in the news and non-news sectors and we are exploring multiple opportunities and possibilities at the moment. We are planning to launch some product shortly in the news and general entertainment sector.