Viewership gets the Hammering - Thanks to Digitisation

Digital channel packages might not be fully active in the digital cable networks in the four metros and 38 cities of first and second phase of Mandatory Digitisation,but their effect on the viewership is already making an adverse impact on TAM ratings. One by one Broadcasters wish to end subscribing to TAM ratings because they find their viewership diminishing.

Take an example of IPL 6. Its generated an average cumulative (both Max and Sony Six) TVR of 3.1 in Hindi speaking markets (HSM) and 3 in C&S 4+ all India. This was much lower than the 3.45 HSM average TVR it reported last year, and probably the lowest in its six year history. In 2010, the average TVR was 4.65, and in the inaugural year the number was 4.81 TVR.

The Digital Effect 

Multi Screen Media (which runs Sony Entertainment TV, Sab, Max, Pix and Six) and Times Television Network (which runs ET Now, Movies Now, Times Now and Zoom) had officially written to TAM Media Research informing its CEO LV Krishnan that they were stopping their subscription to the weekly TV ratings service from 6 June 2013.

Now it is turning out that many other members of the Indian Broadcasting Foundation (IBF) including Star India (Star Plus and many other Star and Fox brand channels), Viacom (Colors, MTV, VH1 etc.), Network 18 (CNBC, IBN7, CNN IBN etc.) and Zee Group channels  have decided to stop their subscriptions to TAM's ratings, doubting its credibility. 

According to IBF president & MSM CEO Man Jit Singh TAM is losing its credibility and reliability. Fluctuations in the ratings have become a matter of great concern. The GEC market has shrunk by 20 per cent. The entire IBF has complained and expressed their frustration and asked for a suitable explanation but none came.

TAM’s ratings were always suspected and now the viewership measurement in Digital era will further make things problematic. However, TAM Media CEO LV Krishnan says there is nothing wrong and broadcasters’ concerns can always be discussed. “Our job is to provide quality and clean data and we will continue to do that irrespective of who subscribes or not. Our parent companies have funded us in the past whether there were subscribers or not. We will continue to measure viewership", said Krishnan to the media.

The Advertising Agencies Association of India (AAAI) has come out strongly in support of TAM and stated that discontinuing its ratings service as the broadcasters have been wanting to do is not a good step.

 "Ratings are absolutely central to conducting advertising business with TV channels. Their absence will lead to chaos in the short term and to a decline in TV advertising in the medium term," says AAAI president Arvind Sharma.

Sharma pointed out that through the last three decades and across media, clients have preferred to invest in media where there is reliable measurement. "It is therefore in the best interests of broadcaster, agencies and advertisers not to disrupt the current system until the alternative BARC system starts bringing out data. I would urge the constituents to continue to support the current system until then," he reiterates.

The problem

Although many reasons are being talked about for a sudden decrease in viewership of IPL 6, the real reason is the TAM cities market shifting to digital Cable after completion of Phase-I and II of government mandated Cable Digitisation. The way Digitisation is being implemented by the Ministry, many subscribers are giving up their cable connections. 

Digitisation requires every TV set to be connected through a Set-Top-Box (STB). Consumers have to pay for packages of channels, STB, entertainment Tax and Service Tax for each TV set they own.   

Where households had three or four TV sets, they might have gone in for only one or two STBs. Many poor households have not gone in for any digital connection as they cannot afford.

More reduction in viewership will be seen when all subscribers exercise their choice of channels. Many of them may opt only for the basic package of FTA channels.

Further reduction in viewership will take place on a much larger scale once government forces digital cable in Phase-III and IV areas where inhabitants are mostly poor who may not afford STBs and pay channel cost.

Whatever may be the reason; all TV channels should make up their mind to face the reality.

Source: http://cablequest.org/news/digitization-news/item/2590-viewership-gets-the-hammering-thanks-to-digitisation.html
Source: http://cablequest.org/news/digitization-news/item/2590-viewership-gets-the-hammering-thanks-to-digitisation.html