From the desk of Strategic Resources
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Volume: XVIII

December, 2008

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Simply click on any of the sections on our snazzy control panel and you will have the latest updates at your fingertips. Wavelength will reach you in the first week of every month so that you have information that leads to insights.

Drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions and comments.

Environment Watch: Advertising & Media

Regulation

19. TRAI alters government regulated sources of news to FM radio –December 8

There seems little scope for private radio stations to broadcast their own news and current affairs, at least for the next couple of years. Recently, the government had agreed to let private FM radio operators air news items prepared by All India Radio (AIR) and Doordarshan. However, it had hinted that there was a possibility to allow private FM stations produce their own news in the not so far off future. The Telecom Regulatory Authority of India (TRAI) has made it a distant possibility by endorsing the government's view that the scope of news items should be limited to government controlled feed. The TRAI endorsement comes after the government informed the regulatory authority in a letter that “in the absence of a regulatory authority with a localised presence, and any arrangement for monitoring the private channels and the sensitivities involved, it is not possible to allow complete freedom to private FM stations to broadcast news, even though the content may be sourced from authorized agencies as suggested”. In its earlier recommendations, TRAI had suggested that FM radio broadcasters be permitted to broadcast news, taking content from AIR, Doordarshan, authorised TV news channels, United News of India (UNI), Press Trust of India (PTI) and any other authorised news agency without any substantive change in the content. Options for the expansion of sources for content may be considered after three years

Source: Agencyfaqs

20.TRAI aims to improve quality of services in NON-CAS areas and DTH services-December 2

In order to ensure quality services to subscribers residing in non-CAS areas, as well as those subscribing to DTH services, TRAI issued a consultation paper. The consultation paper will touch upon facts such as procedures, timelines for connections or disconnections or transfer of cable TV services. The procedure for billing as well as billing related complaints, overall complaint of the addressal system, in areas where cable service providers are providing digital transmission, timeline and the procedure for services relating to provision of digital decoders and STBs (Set-Top-Box) in non-CAS areas. The Ministry of Information and Broadcasting has also been address for enlarging the scope of the existing district level monitoring committees in order to enable these committees to monitor the proposed Quality of Service (QoS) Regulations, this is seen as a challenge due to the fact that there is a very large number of cable operators widely spread over large geographical areas. The TRAI says it has written to various State Governments for effective monitoring and enforcement of quality of service parameters whenever such guidelines are issued in future. The key focus area for the cable industry is the implementation of CAS, the addressability and availability of pay channels

Source: Exchange4Media

Retail

21. Retail to grow to $496 in the next four years - December 17

The unorganized retail sector is expected to grow at about 10 percent per annum to reach $496 billion in 2011-12. The report on the impact of organised retail on small shop owners, released in parliament by the Delhi-based think tank Indian Council for Research on International Economic Relations (Icrier), said the retail business in the country would grow at 13 percent annually from $322 billion in 2006-07 to $590 billion in 2011-12.The unorganised retail industry was valued at $309 billion in 2006-07. However, given the relatively weak financial state of the unorganised retailers and the space constraints on their expansion prospects, this sector alone will not be able to meet the growing demand. Hence, the organized retail that now constitutes a small four percent of the total industry is likely to grow at a much faster pace of 45-50 percent per annum and quadruple its share in total retail trade to 16 percent by 2011-12.

According to the report, consumers have gained with the entry of organised retailers and their overall spending has also gone up. While all income groups saved through organised retail purchases, the report revealed that lower income consumers saved more. Moreover, the report said farmers benefit significantly from the option of direct sales to organised retailers. The study made certain recommendations like facilitation of cash-and-carry outlets, like Metro, for selling farmers' produce to unorganised retailers. It also urged encouraging cooperatives and associations of unorganised retailers for direct procurement from suppliers and farmers. Also, simplification of the licensing and permit regime for organised retail and a move towards a nationwide uniform licensing regime in the states to facilitate modern retail have been recommended.

Source: Economic Times

Radio

22. Now watch “Movies” on Fm with your “Ears”.-December 13

Most FM stations in India today play the role of a ‘jukebox’ sans the coins. The radio content is predominantly based on music, with variations of celebrity chats, interactive sessions, and useful information pertaining to everyday life. However, through a programme called ‘Olichithiram’ Tamil FM station, Hello FM, has resorted to the old school format of the All India Radio by airing soundtracks of movies. The station airs full length movies on Sunday afternoons which breaks the monotony of daily programme listening. The concept of watching movies with ears has picked up rampantly in all radio stations across India and is widely accepted by many.

Source: Exchange4Media

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This tracker has been compiled from external sources and does not necessarily reflect the views of the company.
Links provided will take you to the full articles appended at the end of the file.

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Full Articles

19. TRAI endorses government controlled feed for news on private FM

December 8

Agencyfaqs

There seems little scope for private radio stations to broadcast their own news and current affairs, at least for the next couple of years. Recently, the government had agreed to let private FM radio operators air news items prepared by All India Radio (AIR) and Doordarshan. However, it had hinted that there was a possibility to allow private FM stations produce their own news in the not so far off future.

But that seems to be a distant possibility now as the Telecom Regulatory Authority of India (TRAI) has endorsed the government's view that the scope of news items should be limited to government controlled feed.

The TRAI endorsement comes after the government informed the regulatory authority in a letter that “in the absence of a regulatory authority with a localised presence, and any arrangement for monitoring the private channels and the sensitivities involved, it is not possible to allow complete freedom to private FM stations to broadcast news, even though the content may be sourced from authorized agencies as suggested”.

In its earlier recommendations, TRAI had suggested that FM radio broadcasters be permitted to broadcast news, taking content from AIR, Doordarshan, authorised TV news channels, United News of India (UNI), Press Trust of India (PTI) and any other authorised news agency without any substantive change in the content.

TRAI says that other options for the expansion of sources for content may be considered after three years.

It has also agreed to the categorisation of content as non-news and current affairs. Included in this category are live commentaries, weather, examinations, results, admissions, employment opportunities, health alerts and natural calamities. In these situations also, the scope of content to be treated as non-news and current affairs may be enlarged after a review after three years.

20. TRAI move to check quality of service in non-CAS areas and DTH services

December 2

Exchange4Media

In an effort to ensure quality services to subscribers residing in non-CAS areas as well as those subscribing to DTH services TRAI issued a consultation paper. The stakeholders can send their comments on the issues raised in the consultation paper by December 31, 2008.

The consultation paper will touch upon facts such as procedures, timelines for connections or disconnections or transfer of cable TV services. The procedure for billing as well as billing related complaints, overall complaint of the addressal system, in areas where cable service providers are providing digital transmission, timeline and the procedure for services relating to provision of digital decoders and STBs (Set-Top-Box) in non-CAS areas.

The Ministry of Information and Broadcasting has also been addressed for enlarging the scope of the existing district level monitoring committees in order to enable these committees to monitor the proposed Quality of Service (QoS) Regulations. It is a fact that the enforcement of the proposed regulations is a challenging task. The proposed regulations have largely to be seen as a tool for self regulation by the service providers and one expects from them a high degree of sensitivity and responsiveness towards the subscribers. This is primarily due to the fact that there is a very large number of cable operators widely spread over large geographical areas. The consultation paper attempts to solicit the view of stakeholders on the following issues involving quality of service aspects of cable television service in non-CAS area.

TRAI Chairman, Nripendra Mishra said, “The quality standards should be same as that in CAS areas so that in future migration of a non-CAS area to a CAS area will be comparatively easier. As per TRAI, there are 78 million consumers receiving cable TV services in non-CAS areas, being served by about 60,000 cable operators. The issues raised for DTH Quality of Services pertain to dropping of channels by the service providers, maintenance and visiting charges and protection to the subscribers regarding their tariff plans.”

The TRAI says it has written to various State Governments for effective monitoring and enforcement of quality of service parameters whenever such guidelines are issued in future. Additionally, the Ministry of Information & Broadcasting has also been addressed for enlarging the scope of the existing District level monitoring committees in order to enable these committees to monitor the proposed QoS Regulations.

The stakeholders can send their comments on the issues raised in the consultation paper by 31st December, 2008.

Roop Sharma, President, Cable Operators Association of India (COAI) said, “The TRAI move of issuing consultation paper for non CAS cable TV is much needed and is good for the industry. It would encourage competition which is much needed. The key focus area for the cable industry is the implementation of CAS, the addressability and availability of pay channels. The moment CAS is allowed it will also bring in level playing field which is very crucial.”

On the key concern of DTH industry Salil Kapoor, COO Dish TV said, “At present it is the multiple taxation that is the biggest concern for the industry, regulations from the customers’ point of view is fine. Keeping in mind the issue of sustainability, this is an industry which can give connectivity to even the most remote areas of India.”

21. Unorganised retail sector to grow to $496 bn in four years

December 17

Economic Times

The unorganised retail sector is expected to grow at about 10 percent per annum to reach $496 billion in 2011-12 despite the steady expansion of organised retailers, a study released Wednesday said.

The report on the impact of organised retail on small shop owners, released in parliament by the Delhi-based think tank Indian Council for Research on International Economic Relations (Icrier), said the retail business in the country would grow at 13 percent annually from $322 billion in 2006-07 to $590 billion in 2011-12.

The unorganised retail industry was valued at $309 billion in 2006-07. However, given the relatively weak financial state of the unorganised retailers and the space constraints on their expansion prospects, this sector alone will not be able to meet the growing demand, the report said.

Hence, the organised retail that now constitutes a small four percent of the total industry is likely to grow at a much faster pace of 45-50 percent per annum and quadruple its share in total retail trade to 16 percent by 2011-12, the Icrier said.

However, the Icrier added that small shop owners in the vicinity of organised retailers have experienced a decline in their volume of business and profit after the entry of bigger players. According to the report, consumers have gained with the entry of organised retailers and their overall spending has also gone up.

While all income groups saved through organised retail purchases, the report revealed that lower income consumers saved more. Moreover, the report said farmers benefit significantly from the option of direct sales to organised retailers.

Profit realisation for farmers selling directly to organised retailers is about 60 percent higher than that received from selling in local markets. The study made certain recommendations like facilitation of cash-and-carry outlets, like Metro, for selling farmers' produce to unorganised retailers.

It also urged for encouraging cooperatives and associations of unorganised retailers for direct procurement from suppliers and farmers. Also, simplification of the licensing and permit regime for organised retail and a move towards a nationwide uniform licensing regime in the states to facilitate modern retail have been recommended.

22. Now, ‘listen’ to your favourite movies on FM radio

December 13

Exchange4Media

Most FM stations in India today play the role of a ‘jukebox’ sans the coins. The radio content is predominantly based on music, with variations of celebrity chats, interactive sessions, and useful information pertaining to everyday life. News and current affairs have still not made it to FM radio and the market is yet to evolve for niche categories. But, if at all the monotony of same content and same sound across stations all over the country has set in, no one is sure.

According to Naresh Alambara, GM, Starcom Worldwide, Chennai, breaking the monotony is still not an option for most of the radio stations. He said, “Most of the radio stations are still caught in the brand building stage. Everybody is trying to emerge with some kind of differentiating content, but no one is going into any kind of experimentation beyond music.”

Through its programme called ‘Olichithiram’, Tamil FM station Hello FM has resorted to the old school format of the All India Radio by airing soundtracks of movies. The station airs full length movies on Sunday afternoons. On the occasion of Superstar Rajnikanth’s birthday on December 12, the station aired the superhero’s movie ‘Chandramukhi’ at 9 pm. According to the station officials, the format was believed to have worked among various sections of listeners across its different stations in Tamil Nadu.

According to Rajeev Nambiar, CEO, Hello FM, “All along, television has been riding the fame when it comes to exploiting the virtues of film industry and its icons.”

Commenting on the idea behind introducing an experimental format in its content, Ramesh SK, Executive Vice President & Head - Content, Hello FM, said, “More often than not, the joy of listening to good story-telling is better than the experience of reading or viewing. In today’s radio environment, where near-parity prevails across stations in terms of genre, music and format, playing full length film soundtracks sans songs of good films promise to infuse a breath of fresh air. However, we have been extremely careful while selecting films that are radio-friendly. Having pioneered this trend in the country, we play this once a week on Sunday afternoons.

But as a special offering to our listeners and the almost religious fan-following, we play soundtracks of films featuring stars on their birthdays. Thus was born this initiative and the response has been more than overwhelming.”

The format of watching movies with ears might be doing some rounds, but the scope for newer innovations in the content might still not be on the cards of most FM stations. Reasoning this out, Alambara further said, “FM stations will get into the experimentation mode once multiple frequencies for FM channels are introduced.”

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