CAS should not stand for Conditional Access Systems for cable television viewers. The acronym has come to mean confusion, anarchy and strife. Just about every section of the television industry — broadcasters, advertisers, television programme producers, large distributors or multi-system operators (MSOs), the local cable fellow or the last mile operator (LMO) and, last but not the least, the viewer — is at present thoroughly confused about how CAS would change their lives and their fortunes. CAS is meant to bring about order in the country’s cable television business — on the contrary, there is likely to be greater chaos in the months ahead. The government’s curious decision to push through CAS has drawn greater attention than ever before to the faultlines that divide this industry.
On Thursday, Minister for Information & Broadcasting Ravi Shankar Prasad claimed the Union Cabinet had endorsed his ministry’s decision to introduce CAS in phases in the country’s four largest cities over a four-month period ending November 30. He took pains to emphasise that CAS would not be “rolled back”, like the introduction of value added tax (VAT) was earlier this year. The minister is fooling few. CAS was supposed to have started by tomorrow — July 15. It has already been rolled back. The phased introduction of set-top boxes (STBs) would commence from September 1 and continue for the next three months. But broadcasters are not in agreement with the government’s claim about the duration of the “honeymoon period” during which all cable channels would be provided to the viewer on payment of a monthly subscription of around Rs 100. (India is the only country in the world where a subscriber receives 30 to 100 channels for a monthly fee equivalent to US $4-5.) The government thinks the honeymoon period should last till the end of November. Having been arm-twisted by the PMO to agree to a honeymoon period in the first place, broadcasters think this is only till September 1, after which STBs would be distributed in phases. At this rate, the “marriage” is heading for a divorce.
The real reason why powerful sections are opposed to the smooth implementation of CAS is simple. It would drastically curtail corruption. Broadcasters are currently dependent on imperfect techniques of market research — including the seeding of “people meters” — to gauge levels of viewership expressed in the form of TRPs (television rating points). Once the introduction of CAS results in an “addressable” system, broadcasters would obtain far more accurate statistics of their viewers. In other words, exaggeration of viewer numbers would be curbed. There is another respect in which thievery and deception would come down. Currently, cable operators declare 15-20 per cent of their actual subscribers for two reasons. One, they have to fork out much lower sums to broadcasters/ MSOs. Secondly, by under-declaring their subscriber base, LMOs are able to offer their services for amounts ranging between Rs 100 and Rs 300 per month.
The pitched battles that have been witnessed in recent months over the introduction of CAS have much to do with sharing of the spoils and relatively little to do with offering viewers “greater choice”. Though everybody swears by consumers, few give a damn for them. The subscriber in Delhi, Mumbai, Chennai and Kolkata still does not know how much he would have to pay for his STB, whether it would come to him free on a monthly lease rental of, say, Rs 30, whether he would have the option of purchasing it outright, whether it would be analog or digital or whether it would be imported or locally assembled. Even if these issues are sorted out by undertaking imports of the gadgets — from, among others, companies associated with the Murdoch empire — certain other problems will not disappear in a hurry.
The broadcasters are right now split into two camps, swadeshi and videshi, with the former claiming that the latter is trying its level best to scuttle CAS while claiming support for it in public. This divide has perhaps less to do with CAS and more to do with the controversial manner in which the STAR group has attempted to hive off a company with a small paid-up equity capital base (held by friends and associates) to adhere to government norms for uplinking its news channel.
The biggest question that remains unanswered is why the government is so keen to implement CAS at a time when elections are virtually round the corner. At a time like this, one would have thought that the powers-that-be would be more interested in demonstrating to the electorate that they want to govern well, create jobs, provide power, build roads, help farmers and so on. How important are barely 7 million urban middle class cable television subscribers? Answer: The Delhi voter may matter right now, but not most of the others. To what extent does the television viewing habits of this section influence the rest of the country? Not very much. Do you seriously believe the government amended the law to help cable television subscribers who were at the mercy of monopolistic cable operators who would arbitrarily hike their charges? Probably not.
The answers could perhaps be found in two unrelated developments. The I&B ministry was keen to bring in an ordinance to rein in recalcitrant broadcasters but opinion within the Cabinet was clearly against it on the ground that such a move could be construed as trying to curb the media’s freedom of expression. The other reason could lie in the fine print of the amended law that provides the government over-riding powers to control which channel is watched where and when, for free or for a fee — all in “public interest”, of course. There were many in the government who were unhappy with the television coverage of the Gujarat riots. They wanted a law that could check broadcasters. In trying to move ahead, this group probably bit off more than what they could chew.
(The writer is director, School of Convergence, International Management Institute, New Delhi)