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Wednesday, August 29, 2001

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Subscribers show operators the door

By K.V.S. Madhav

HYDERABAD, AUG. 27. The bull has been taken on by its horns. In this case, it's the raging bull, drunk by power emanating from years of unquestioned domination. Residents of various residential colonies have finally shown the cartel of cable operators - demanding more than what they deserve - their place.

A veritable war is on in all parts of the twin cities. No words, only action. Registering their strong protest against the ``arbitrary'' hike in cable television fee, people have refused to budge. ``We will not pay even a single paisa more,'' is their united stand.

Instead, cable subscribers of some areas have gone ahead and found a way out, opting for new cable networks. As was the case in B.S. Maktha, where cable subscribers ensured that the monthly fee was pegged at Rs. 100 as against the demand of Rs. 150.

Unfortunately, in several areas this alternative is elusive as the operators, working as a syndicate, monopolise the scenario by acquiring tie-ups with all the three cable companies operating in the city - Siti Cable, C TV and Incable. Elsewhere, musclepower speaks and competition in the form of other cable companies is kept at bay.

Stung by the sudden and ``unexpected'' reverse, the cable operators responded by snapping the connections, left, right and centre. ``Let them do it. We will see how long they'll go on disconnecting. They are digging their own grave,'' is the affirmation of various colony welfare associations which have come onto a single platform for the cause.

And they have a point here. ``The market value of each connection is worth a few thousand rupees and if the operator wants to sell away his business, he would be shorter by that many thousands.''

The Confederation of Residential Welfare Associations, a conglomeration of 32 residential colonies in and around Mehdipatnam, has viewed this ``brash act'' of the cable operators so seriously that it has even decided to go to the Court. Surely, the heat is on boiling down to a now-or-never situation.

The question being asked is why should cable television viewers pay more when the satellite channels, the well entrenched cable companies and the cable operators are minting money?

``Subscriber is the major contributor for the well being of any television channel. It is the share of viewership that gives any channel an upper hand in the advertising market and becomes the very yardstick of its performance and existence,'' insists Mr. Kalyan J. Yakaiah, a media consultant.

``More the viewership, the bigger will be the advertising rates and revenue. They are directly proportionate,'' he explains. While the cable and satellite television penetration was a mere 15-20 per cent in the early 90s, this has reached a high of 85 per cent today.

According to the latest advertisement tariff cards of the television industry, the popular `Kaun Banega Crorepathi' on Star television is sold at a whopping Rs. 12.46 lakhs per 30 seconds of airtime! ``There were days when 10 seconds of it's airtime was sold at Rs. 6 lakhs and even more,'' he points out.

Similarly, prime time band is sold at Rs. 1.8 lakhs per 10 seconds on Zee and Rs. 1.6 lakhs per 10 seconds on Sony television. Interestingly, this prime time stretches to four hours or even more everyday!

``All these entertainment television channels are self sufficient and rolling in money. The kind of money they rake in is obscene by any standards,'' industry sources say. If the viewership dictates the television channels' revenue, why tax the subscribers further is the moot point.

More importantly, cable subscribers are being fleeced in the name of pay channels with operators quoting packages of Star, Zee, Sony and the likes. ``But, pay channels are those that do no generate revenue by way of advertisements. They run solely on the basis of reach and direct subscriptions from the people who prefer uninterrupted telecast without those irksome advertisements. These are niche channels,'' media watchers say.

With no access to any kind of data, residential associations are in the dark. Against this backdrop, subscribers are compelled to show the door to the cable operators. ``Let people refrain from watching these channels for some time and there is bound to be a major drop in the viewership ratings. It would be interesting then,'' avers Kalyan.

And that seems to be on the cards, what with people bent on taking on the cable Goliath head-on.

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