The Hindu Business Line : Consumers CAS happy, choose free-to-air

New Delhi May 31 Television audiences freed by the Conditional Access System are indifferent to saas-bahu serials and cricket telecasts, if a six-month review of CAS is anything to go by.

"The penetration has only been about 35 per cent in the CAS areas. The initial hitch of a shortage of set top boxes (STB) cannot be an excuse after April," said Mr Jayraman, CEO, Hathway Cable and Datacom, speaking on the company's experience in the notified areas of South Mumbai and South Delhi.

With DTH credited for capturing another ten per cent of the remaining audience, it leaves more than half of television viewers with free-to-air channels. "From a consumer perspective, CAS seems to have been a success. Now, viewers can pay Rs 75 for the 70 odd free channels. The inflated theory that general entertainment, movies and sports are all that TV audiences crave for has been proven otherwise. Maybe broadcasters should review the Rs 5 per channel charge for paid channels," said Mr Jayraman.

Broadcasters' view

Broadcasters, some of whom are yet to complete billings for the notified areas differ. Mr Kunal Dasgupta, CEO Sony Entertainment Television, believes that once news and regional channels also go paid, viewers will have little else to watch. "Not only is the penetration unsatisfactory, it's also not clear how much the cable operator made out of CAS," he said.

Essel's Zee, which is associated with Wire and Wireless, its cable arm, seems happy with CAS. "According to the latest figures we are the leading channel in CAS areas. The digital system is transparent and increases subscription revenues by bringing in collection from places not covered earlier, as well increasing ad revenues," said Mr Ashish Kaul, Senior Vice President, Zee Group. The existing revenue sharing arrangement brings 25 per cent to the last mile cable operator, 30 per cent to the multi system operator and 40 per cent to the broadcaster.

Our Mumbai bureau reports: According to Mr Manish Porwal, Executive Director, India-West, Starcom Media Vest Group, "There has definitely been a drop in viewership post-CAS and the TAM panel expansion, but ad rates and prices will get re-adjusted over the long-term. The ad deals are not done on an annual basis and new deals have been structured depending on the viewership. It is a demand and supply situation where the viewership has to justify the price."

Adds Ms Ambika Srivastava, Chief Executive Officer, Zenith Optimedia, "Yes, viewership has been going down in the CAS markets and the first phase has yet to be covered up. Most of the advertisers have already factored in the drop in viewership in their media plans."

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