How the broadcaster-operator wars are killing Television

Kolkata: Quite like the famous song by The Buggles ‘Video killed the Radio Star’, the Internet is already killing Television for many good reasons. What is certainly aiding the process is the shameless disdain for customer centricity, as the timing of the latest blackout verifies.

Sports lovers in Calcutta were in for a rude shock on Saturday afternoon, as the Indian innings versus Australia was terminated not by fine bowling but by a negotiation impasse. TV channels from the Star, Zee and Sony portfolios disappeared from the mortal universe as folks were left staring at an officious notice, which insisted that the purse strings of viewers were being protected.

Call it old-fashioned bullying or timeless subversion, today’s customers are not used to being treated like in the 1980s. When broadcast indulgences could be suspended to show respect to the departed Premier of Fiji or some such irrelevant obscurity. Even power failures, the other usual suspect, are now suitably dismissed and interruptions are truly a rarity.

Now, do merge the above sentiments with some hard-nosed business realities. In 2022, Disney Star sub-licensed the TV broadcast rights of ICC cricket events in India (2024-27) to Zee Entertainment Enterprises for $1.5 billion. This was a thoughtful indicator of future sports broadcaster strategies, defined by customer consumption patterns.

Disney Star smartly retained the lucrative digital rights (paying about $1.5 billion) for ICC Cricket, while holding on to the IPL telecast TV rights from 2023-27 (23,575 crores). While IPL viewership may have dipped a bit in 2022, the franchise-based format ensures predictable audience involvement, unlike ICC tournaments that depend on India’s results. Which makes revenues tougher for the TV broadcaster while the flexible digital hemisphere can be more attractive.

Also, the numbers game on the TV front will be fairly status quo (200 million plus TV homes as per BARC), as new entrants are jumping straight to mobile internet. On digital, the affordable increase in broadband penetration powered by 5G and rampant smartphones, is clearly leading the growth path Northwards. The visible rise in digital users will make these rights way more valuable in future, way beyond the current 50-50.

Observationally as well, the changing patterns of consumption are plainly apparent. India is a nation on the move, literally, a function of the blossoming service and gig economies. The mobile phone cum headphone is now the go-to Cricket consumption device, in metro compartments, buses, offices and elsewhere - quaintly replacing the role of the radio. The static limitations of TV, both at home and away, already make it less attractive as a personalised viewing device.

In light of all of the above, it is necessary to view the suicidal intent of the telecast blackouts, as ruining the entertainment desires of trusting audiences. Not just Live Cricket but serials and musical shows as well, which are also suffering from the VFM prolificity of the OTT evolution. Indeed, a potent trigger to immediately sack the local service provider and allot limited funds to digital access. It’s rather ironic that the biggest selling point of cable networks has been reliability - proven most recently in the Fifa World Cup when the sub-optimal feeds on Jio led many to revert to TV and the foul weather disruptions on Satellite Dish conduits that are so irritating.

On a societal note, it is important to recognise that the cable operator has a strong relationship with customers - usually respected and loved members of the local community. At times like this, they appear rather helpless and are usually the first line of attack for irate viewers - quite like a kirana store owner answerable for stale packaged chips from reputable brands. Confidence in local businesses, already threatened by digital progressions, gets further shaken and this is indeed no good for nobody.

It can be said, with reasonable logic, that such sadistic blackouts, at the peak of prime sporting encounters, are enraging the dying breed of urban TV supporters. Most are already in possession of smartphones and using messaging services, and the tipping point to content consumption is a decimeter away. In an era of prolific conspiracy theories, this appears to be a Chinese incursion - smartphone stakeholders smartly murdering the idiotic Idiot box.