(26 March 2008 2:00 pm)

MUMBAI: While there is a push to move to the digital era in the form of cable, direct-to-home (DTH) and IPTV, companies must realise that innovations in business models are more important than the technology. Also crucial in this changing scenario is to protect revenues.

These were some of the points made at Ficci-Frames in a session on "Media choices in an expanding universe." The speakers were PwC's Marcel Fenez, Inmarsat senior VP Pat McDougal, Thomson VP Thiery Pasquel, Reliance Infocomm president Prakash Bajpai, Communications Research Centre in Canada president Dr. Veena Rawat, Time broadband MD Sujata Dev and IBM GM media and entertainment practice Dick Anderson.

Fenez made the point that companies must engage in meaningful dialogue with different stakeholders including the advertisers and different consumer segments. Focus groups help determine the shift in preferences as well as what clients look for.

Having said that though, ad revenues are finite. "The silos in which media companies work in must break down. It is also key that content be compelling. You also need to understand whether your TG is interested in watching channels per se or are they searching for a particular show like Desperate Housewives."

Measurement of viewership on different devices is another challenge. It is also paramount that in the digital shift that is happening, companies should not lose sight of the need to focus on the consumer's spending power. He notes that the spread of digital media in the US and Europe has led to a change in the consumers mindset where they want things on demand.

Anderson notes that the consumer now more than ever is in control. Media companies, thus, have to be consumer-centric. "If technologies like IPTV are to work then companies have to spend time
understanding consumer behaviour. Earlier linear channels did not do that. Segmentation of the audience is also important from the service provider's viewpoint. They need to understand who their TG is. Is it the linear channel viewer? Is it those who are technology savvy? Is it the youth," he points out.

Convergence breaks down the boundaries between the telecom and broadcast industries. Falling revenues from voice is leading telcos to get into video. Thierry notes that an operator who offers a bundle of converged services is at an advantage. The user interface is logical and consistent in this scenario. Also new services can be added quickly without the need for extra infrastructure.

One challenge that convergence faces in India is regulation. Dev notes that the government should look at regulation with the aim of paving the way for a digital, convergent home. This will be a place where a single gateway addresses different devices. This would allow for a seamless transition of content. There is also the challenge of regulating user generated content.

She also spoke on IPTV using 2.5 G to be provided on the mobile. "This is a pull rather than a push technology. There are menu driven selections. One can select a show without ads and pay for it. The thing to remember is that consumers will want content in their definition of primetime."

McDougal spoke about mobile TV which is in its early stages. There are many trials going on globally. Since spectrum is a key issue, satellites can play a big role in delivering mobile TV. Spectrum can be used to repeat terrestrial signals for the cable. China, he explains, is building such a system in time for the Olympics.

Rawat, meanwhile, shed light on the digital scene in Canada. The transition date is 31 August 2011 which is two years after the US. "Most satellite signals in Canada are digital. The digitisation of cable systems is also taking place."

One of the technology challenges for IPTV is carrying HD channels. The hybrid fibre coaxial model is one of the ways to go to achieve this as opposed to an ADSL line. One of Canada's IPTV companies uses MPEG 4 which is far superior to net TV which is what Joost offers. Another technology advancement taking place is 3D TV where you do not need glasses to view it.

As far as mobile TV is concerned, there are operators who give up to 30 stations. There are different business models and one of them is the united mobile browser service