Broadcasting to go completely digital by 2013. Are we ready? [Media Monday]
Broadcasting will be completely digital by 2013 as announced by TRAI Chairman JS Sharma in a recent media meet. That would actually mean a lot of positive things for Indian media industry- More revenues from Subscribers and Advertisers. However the huge competition in DTH business is also killing the margins for various players. As quoted by Vikram Kausik, CEO, Tata Sky:
Digitalisation today is inevitable and the scale and potential of the volume of this business in India is huge. However, the players in this sector with a focus on achieving this volume are adopting disastrous margin cuts, which are leading to very low average revenue returns for the industry.
There is some good news from Indian Internet market too. As quoted by Vishal Gondal of Indiagames:
Although 85 per cent are free users of the social gaming industry, they act as viral/ marketing agents and popularise the platform and these users can be enticed to various advertisements and offerings. Twelve per cent users engage in micro transactions and 3 per cent are premium subscribers. Thus ensuring that the industry earn revenue from users as well as from advertisers.
This news is definitely encouraging but its hard to digest infrastructure related promises by TRAI. Although media honchos were expecting this role out to be completed by 2017, a sudden news of getting it done 4 years earlier is definitely encouraging. But its easier said than done. Digital video Broadcasting requires various protocols to be implemented and our Analog Cable industry is very huge and unorganized, hence it would not be an easy task for TRAI.
TRAI’s earlier promises for Broadband penetration haven’t quite seen the light. Proper digital convergence is only possible when we have high speed Optical fibres spread across the country and that doesn’t seem to be happening soon. What say?