Speaking at the AIDCF event yesterday, Sanjiv Shankar, Additional Secretary & Financial Adviser at the Ministry of Consumer Affairs, Food & Public Distribution, and former Joint Secretary at the Ministry of Information & Broadcasting (MIB), delivered a compelling address that transcended the usual discourse on industry challenges.

While acknowledging the current hurdles faced by the broadcasting sector, Shankar’s insights focused heavily on the need for internal collaboration, strategic adaptation, and a renewed understanding of the consumer’s role in shaping the industry’s trajectory.

This report delves into the salient points of his address, highlighting areas of potential growth and the critical shifts required for the sector’s long-term sustainability. Shankar passionately argued against the prevalent “compartmentalized” view within the broadcasting field, where different components often compete under the mistaken belief that one segment’s gain necessitates another’s loss.

“It is not a zero-sum game,” he emphasized, advocating for a collective responsibility towards society where the entire sector “floats together, you swim together.” This call for unity underscores a crucial shift from internal competition to a collaborative approach, particularly in seeking concessions from the government for the industry as a whole.

A significant portion of Shankar’s speech was dedicated to the industry’s often-underestimated strengths. He pointed out the broadcasting sector’s unparalleled reach, a “first mover advantage” that has enabled it to penetrate nearly every corner of the country. This extensive ground presence, coupled with invaluable customer data (KYC),
represents a “huge value in today’s world” that should not be underestimated. Furthermore, he highlighted the sector’s cost-effectiveness, particularly in a price-sensitive market like India, where average revenue per user (ARPU) for broadband consumers watching content significantly outstrips that of cable TV. “None of us who is watching the OTT is spending less than 1500 rupees per month,” he stated, contrasting it with cable’s average of around 300 rupees. This cost advantage, he asserted, remains a powerful market determinant.

Shankar also addressed the often-cited challenge of declining subscriber numbers by offering a nuanced perspective. He presented an optimistic outlook based on the growth of connected TV, even if it introduces new consumption patterns. He stressed that viewing content on connected TVs is a “family viewing” experience, unlike the often private consumption on mobile devices. This, he argued, aligns culturally with India’s viewing habits and signals a positive future for television, projecting a significant increase in connected TV households to 7.6 crores by 2030 from the current 3 crores.

He debunked the notion of a “zero-sum game” between digital and linear viewing, explaining that consumers often watch both. “I also have the connected TV. I also have the linear TV on my same set. And I am not an exception. I am just the rule as of now,” he stated, emphasizing that multi-platform viewing is becoming the norm.

The Joint Secretary also touched upon the regulatory environment, acknowledging that while regulatory issues exist, the industry often “overplays the role of regulation.” He advocated for an approach centered on the consumer, asking whether any regulation can deny a subscriber what they want simply for the sake of a specific segment.

While supporting the principle of a level playing field where similar services are regulated by the same rules, he reiterated the importance of industry consensus. He cited the example of the radio sector, where concerted efforts to harmonize aspirations led to a smooth consultation process with the Telecom Regulatory Authority of India (TRAI). He also hinted at the ongoing shift towards deregulation within the government, aligning with the economic survey’s underlying theme, and suggested that simplifying program and advertisement codes could bring traditional TV closer to the less-regulated OTT space.

Looking forward, Shankar urged the industry to proactively embrace the “convergence bandwagon,” noting the growing prominence of IPTV and the substantial number of Local Cable Operators (LCOs) willing to transition to broadband services. This adaptation is crucial, he believes, to cater to evolving subscriber preferences.

He also pointed to untapped revenue streams, particularly in local advertisements, where the cable sector’s widespread presence offers immense potential. The revelation of two crore inactive Set-Top Boxes (STBs) and over ten crore “TV dark homes” presents a significant opportunity for the sector to expand its reach.

Finally, Shankar challenged broadcasters to invest in quality content for linear TV. While acknowledging the production of two lakh hours of content, with 97 percent dedicated to TV, he questioned the lack of compelling programming. He encouraged broadcasters to consider making popular OTT content available on linear TV, giving viewers more choice.

He also raised a pertinent concern about the quality of content watched on TV, whether linear or digital, stressing that “it’s a family platform” in Indian homes, making the quality of content a critical societal concern. He called for an end to the “cat and mouse game” with new issues constantly emerging and emphasized the need for the industry to take collective “group calls” to safeguard its interests and adapt to change.