Exclusive: Envisioning cable TV in 2020
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08-12-2013, 07:02 AM
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Envisioning cable TV in 2020
Rapid technological innovations have created a new, almost universal, crisis affecting every aspect of our life. While the life expectancy of individuals is getting lengthened, the life cycle of businesses is getting increasingly shorter. Decades-old giants have been superseded by tiny tots—the iPod has supplanted the Walkman, mobiles have long killed pagers.
In the business context, the old adage “One man’s food is other man’s poison” is being rephrased to “One smart device displaces two or more not-so-smart devices”. There is a serious challenge for employees who cannot plan industry-specific careers, as well as for investors. By the end of 2020, Indian cable TV will have reached its mid-30s while DAS Phase I will have grown about a decade old. Cable TV in India has got a second lease of life and is attracting investors. As a result, it would be worthwhile to see what will become of cable TV five years after the pan-India roll-out of DAS. Cable TV is blessed with relatively low-entry costs, softer term licences and unlike the telcos and ISPs, it does not have to pass revenue share to the government. These differences will become more relevant in relation to the fall of the ARPUs. Cable TV’s fragmented ownership will prove to be a boon. After all, its corporate entities can afford the luxury of diversification, sell-out or write-off. As often as not, businesses get so unmanageable and entangled that investors themselves look for an exit. All of them are lucky to have other doors to knock on. However, an individual with limited resource and no alternative income opportunity can afford to let their business go to the dogs and declare bankruptcy. The response to a crisis often depends on the perspective which may be either balance sheet oriented or profit and loss oriented, but it is rarely both at the same time. Cable TV in India has generally been owned by individuals with limited coordinated effort. In the coming years, cable will have to face a number of bigger challenges. Let’s look at some of these challenges and myths that will break down and some rules that are likely to get re-written. Screen, not home, will be taken as the revenue source. The fact that mobile devices exceed TV sets by almost five times will certainly matter and those who ignore this will run the risk of being left out of the game. Pooled wire will get newer service capacities through pooling of wires where cable operators retain their sub-set monopoly but also get into inter-connect and managed services distribution to gain a foothold on each screen. Intranet and local data hosting will add another dimension to internet protocol-based services. Mind grabbing, i.e. winning customer loyalty, will become more important than land grabbing. There will be an inter-sectoral level playing field. Cross-technology warfare will be fought more intensely on uneven terrains. Contextualised advertising will gain in popularity, as a result of which the broadcaster model of subscription-cum-ad income will get replicated at the LMO level as well. Those who are happy with linear increase in revenue will fare poorly compared to those who look at CAGR and are willing to travel the extra mile down the path of technology adoption and service innovation. The customer too will reap the rewards by getting the best of services at most attractive prices. Read more at: http://www.televisionpost.com/technology...v-in-2020/ | TelevisionPost.com |
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