Business Standard

When TV crosses the digital divide

With the phase out of analog TV, changing viewing habits and consolidation of agencies, the small screen is set to get an innovative push

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Nandini Dias

Overcoming a round of resistance in July, a determined government and the broadcast industry finally made sure that the top four metros fell in line with the digitisation mandate before the end of 2012. While the next round of 38 cities present a bigger challenge, the changes in viewership as a result of a whole new world of genres on the TV set are likely to be the focus of much analysis and discussion in the coming year.

Viewership got a digital ‘push’: The next wave of digitisation will lead to an initial spurt in TV viewing as the newborn digizens sample the new offerings over the course. It is likely to settle down at a higher level than what it is at present. This year will be one of transformation on both sides of the television screen. For viewers and advertisers, niche genres could well be the new meeting ground, shaking up the dominance of mass channels. For broadcasters, subscription revenues are likely to revise business models.

 

TV planning outgrew TAM: For most TV planners and researchers, TAM’s software has been an inescapable part of the rites of initiation. Despite all the research and studies on television audiences, TRP was the final arbiter that drove big decisions — where the client’s money was going, which shows featured at what timeslot and even storylines of certain serials and soaps.

With increasing digitisation and dissatisfaction with the current system, TV planning itself started looking for life beyond ratings this year. Planners used the digitisation blackout as an opportunity to look at non-traditional ways to understand viewing, like chatter on social media to measure buzz around TV shows. With the formation of the Broadscast Audience Research Council, the lawsuit filed by NDTV over ratings manipulation, and the blackout due to digitistion, it is likely that a new, robust audience measurement system will debut this year. (Click for graphs & table)

Media agencies put on muscle to grab the Indian market: Despite the slowdown, India’s media industry is booming in comparison to its counterpart in the West. Small wonder then that global networks are leveraging both size and skills to make their presence felt. While 2012 saw the consolidation phase, 2013 will see the effects of the consolidation. The biggest of all was IPG. With media agencies Lodestar UM, Initiative and BPN, along with other businesses under the Mediabrands umbrella, IPG is now in a position to challenge the clout of GroupM. Dentsu’s buyout of Aegis Media signalled its intention to move into the ranks of top media houses and US-based Omnicom Group took a majority stake in the Mudra group to expand its India operations.

Media got the corporate look: The 27.5 per cent stake picked up by the Aditya Birla Group in Living Media India may not have made it to the headlines but it definitely showed the direction that Indian media is heading towards. The Reliance-Network 18 deal in comparison was corporate India’s biggest thrust into the media world giving it a huge presence across businesses — TV, internet, e-commerce, magazines and mobile content.

With a growing number of corporates taking keen interest, it is only a matter of time before the media industry adapts and structures itself to a more orderly life. Financial investment will enable media to use its power more effectively.

India became the global hub: For the first time, a global agency was headquartered out of India. Vikram Sakhuja’s elevation to the post of global CEO of Maxus this year became a matter of pride not just for Maxus India, but for the entire Indian media community. It was both a recognition of individual talent as well as an acknowledgement of the growing tribe of Indian success stories in the global corporate world. The trend is set for more such success stories in the future.

India took the mobile leap forward: China may have overtaken India in massifying the internet but the mobile is set to rewrite that story. As prices for smartphones plunge and telecom service providers scramble to retain subscribers with low tariffs, India is poised to leapfrog the PC and laptop using the mobile to connect to the Net. The lack of infrastructure which frustrated earlier efforts to turn the internet into a mass medium will be overcome with the right mix of products and services on the mobile platform.

India is already spending more time than ever before on digital devices. You might have observed that even the neighbourhood grey market dealer is up to date with the latest iOS information.

Indian sports went beyond cricket: When India toasted the achievements of Saina Nehwal, Mary Kom and other Olympic medalists this year, it was a sign of a whole new breed of sports genres coming to the fore. A cricket-weary nation is looking beyond the trials and tribulations of Tendulkar and Dhoni to rediscover other sports like badminton, boxing and shooting.

While the next IPL will continue to be a formidable draw despite the drop in ratings, other opportunities to bait sports enthusiasts are also waiting in the wings. A comparison of viewership of the Olympics 2012 vs 2008 shows that non-cricket viewership is gathering momentum and will be a strong engagement point in the future.

Nandini Dias
Chief Operating Officer, Lodestar

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First Published: Jan 14 2013 | 12:38 AM IST

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