FICCI FRAMES 2013: Expansion challenges faced equally by multiple M&E stakeholders

Digitization is key to growth in the M&E Sector and that reality was reiterated on Day 1 of FICCI FRAMES that launched its 14th Edition today in Mumbai.

In the key panel discussion on the crucial roll out of The Second Phase of Digitization, where eminent panelists N Parameshwaran, Principal Advisor, TRAI, Sameer Manchanda, Chairman & Managing Director, DEN, Sunil Lulla, MD & CEO Times Television Network, Man Jit Singh, CEO Multi Screen Media, Raman Kalra, Partner & Industry Leader, Media & Entertainment Practice, IBM Global Business Services, Tarun Katial, CEO, Reliance Broadcast, Anuj Gandhi, Group CEO, India Cast, spoke on the best way to speed up the second phase of digitization that will span across 38 cities by March 31, 2013.

As digital penetration becomes widespread, there is a need for effective business models to evolve where by all stakeholders in the industry come together to make Phase 2 of digitization a success.

N Parameshwaran, Principal Advisor, TRAI, commented, “The real benefit of digitization has not yet surfaced. The industry is coming together to correct this limitation. We need to ensure from day 1 that all systems are working and there is a multi-prong approach. Moreover, there is no regulation in the pricing of HD, 3D channels and broadcasters can charge as much as they want for these channels.”

Raman Kalra, Partner & Industry Leader, Media & Entertainment Practice, IBM Global Business Services said, “We are living in a connected consumer era. It is not enough to go digital. It is important for the industry to keep a parallel strategy for incremental money upsell.  Consumers are happy to pay the extra money but there should be micro segmentation of consumers and content should be developed to cater to each set of consumers.”

Sunil Lulla, MD & CEO Times Television Network (TTN) said, “The current economics are not adequate for the success of Phase 2 of digitization. There is an urgent need for industry transformation and an effective change in consumer experience. We are sitting at the cusp where widespread and deep digitization will on the back of consumers, regulators, government and DTH operators working together.”

Sameer Manchanda, Chairman & Managing Director, DEN further added, “The industry has to be ready for a few hiccups. The consumer is going to be the king and is going to have the ultimate choice on what he pays for and what he wants to see.”

The industry has to have a base package affordable for the consumers. There is an opportunity to create a pack of regional channels in metros like Mumbai and Delhi instead of focusing on introducing new niche channels.

Anuj Gandhi, Group CEO, India Cast said, “Content is consumed in multiple platforms through multiple devices by different consumers. Therefore as an industry has to work together to create the right revenue models.”

Manjit Singh, CEO, Multi Screen Media aptly summed up the discussion and said, “Tiering and Advertising Revenue Per User (ARPU) is incremental to drive the market together by understanding the consumer needs and expectations. The burden of expansion has to be shared by the Local Cable Operator (LCO), Multi System Operator (MSO), broadcaster and the consumer.”