Special Media Issue
* Strategic choices of an advertising agency
* Re-engineering today's advertising agency for tomorrow
* Evolving equations:analysing the client-agency-media owner relationship
* Strategic Marketing Forum
* Face it: no one's willing to work for ad agencies anymore
* Why media planing must be redefined
* Pricing of TV time
* Need for a one-stop media shop for meeting clients' communication needs
* Making the right connections
* Conventional television in the time of convergence
* The ad industry needs a wake up call.... right now
* The importance of targeting in online advertising
* Frontiers of research
* Book Review





















Conventional television in the time of convergence
Kiran Karnik
Managing Director, Discovery Communications India..
 
The typewriter, the cyclostyling machine and the rotary-dial telephone have all disappeared, consigned to oblivion by the march of technology. In many homes in India, the radio set seems to await a similar fate. A different style and content have helped FM radio to almost completely displace the traditional AM medium-wave/short-wave sets in the upper tier of households in Delhi and Bombay. Cheap audio cassettes and CDs, and low-cost players have also eaten into traditional radio’s audience. But, above all, TV has been the major factor that has sowed doubts about the future of radio.
Youngsters of today find it difficult to imagine an era when television did not exist. So pervasive has television become, so visible its presence and important its effects, that urban and even semi-urban India can hardly conceive of life without TV. Yet, in all but a few small parts of India, television is but a quarter-century old. Over this period, the TV set has now become an essential fixture in all upper- and middle-class households, and is not uncommon even in poorer homes in urban slums. Its poor cousin, the radio set, is now generally banished into unopened cupboards, and the large, older set is considered a quaint but definitely obsolete decorative piece.

 
Despite this dominance of TV, despite.its looming, larger-than-life presence, the question arises: will new technologies mean the end of TV? Will TV face the same fate as radio? In the era of the Net does, ‘conventional’ TV have a future at all?
A number of factors lend considerable validity to these questions. The first of these is the increasing convergence of television and computer technologies. Driven by digitalization, television is today increasingly delivered as a ‘bit-stream’ that is indistinguishable from computer data bit-streams. Increasing data-delivery needs requiring faster speeds have moved computer connections to broad-band cable or high bandwidth wireless (terrestrial or via satellite), even as new techniques for vastly increased data-delivery over telephone lines have opened up the possibility of carrying video over these lines. These new developments have made it possible to receive e-mail or browse the Net on a TV set, through a ‘set-top box’. At the same time, the computer monitor can be transformed into a TV set. Given the technological feasibility of convergence of these two, it is possible that only one may ultimately survive. Clearly, in a digital world, the digital-from-birth, intelligent device (the computer) is almost certain to win over the idiot-box.
The survival of ‘conventional’ television is threatened by another development: the birth of interactive TV. The convergence of technologies makes it possible to convert the TV set into an interactive device. With two-way connectivity, viewers can respond to a programme through queries, answers, data-base searches, orders for purchase of items advertised on screen etc. This could help TV to survive, but one can argue that this transformation is the birth of a ‘new’ medium, and that conventional TV will die.
A third threat to today’s television comes from so-called personal video recorders. These PVRs are the new-age versions of the traditional video cassette recorder, more commonly known as VHS (Video Home System) in India. These solid-state devices can record a few hours of television, and have very considerable intelligence built into them — in fact, they are basically computers. They can be pre-programmed to record at particular times, or particular programmes; they can eliminate commercials or unwanted breaks; their storage enables one to answer a phone call or be otherwise diverted and yet not miss any part of the programme being telecast: these are but some of the features of these devices, which are certain to get even more sophisticated. PVRs clearly threaten TV from a different point of view: they require television channels to invent completely new business models. For, such a device can be programmed to ‘create’ a personal channel, by picking and recording select programmes from various channels. A viewer could thus come back home and watch, for example, half an hour of relaxing Nature programmes from one channel, followed by local news from some other channel and international news fromanother; a lively music video from a niche channel would then follow before an old film classic. Each viewer making selections of different programmes from different channels would mean thousands of personalised channels — with none having any brand identity. Clearly, the millions invested on creating and promoting channels-as-brands may well be in danger of getting no return. Further, the viewer could eliminate all commercials, and if commercials have no viewers, advertisers are not going to be paying lakhs of rupees for a thirty-second spot. Thus, PVRs could turn the television industry topsy-turvy. .
They say that the idiot box works on the principle that there is little intelligence on either side of the screen. But if this somewhat cynical view of human nature be true, it will not mean the end of conventional television.
Yet, before we write conventional television’s epitaph, let us note that what is outlined earlier are but technological elements and possibilities. We know that sociological and cultural factors often override technology. Why else would computer-owning households buy and read newspapers that they can access far more easily on the Net? Why would people with sophisticated home-theatre systems in which they have invested thousands still go to a cinema theatre? Why would tens of thousands of spectators go to a cricket match when they can get a far better view on their TV sets? It is, indeed, more than likely that a majority of people would, for a major part of time, prefer to sit back and be entertained rather than ‘work’ for their entertainment. In other words, the ‘lean-back’ passivity of the couch potato may be the dominant mode rather than the ‘lean-forward’ enthusiasm of the computer geek. One may well say that the idiot box works on the principle that there is little intelligence on either side of the screen. If this somewhat cynical (pessimistic?) view of human nature be true, then all the exciting new technologies will result in new applications, maybe even a ‘new’ medium, but will not mean the end of conventional television. Even so, the newer forms of TV — interactive TV, ad-free channels, individualised channels — will become an increasingly important part of the media scene. Technological convergence, lower costs and availability of broad-band links will all facilitate the growth of the new medium. Even one new ‘killer application’ that fully exploits the new possibilities will give a major boost to deeper penetration of interactive TV. This will mean a complete re-orientation of the TV industry. Specific content, electronically tagged to reflect subject/writer/artists/locales etc., will facilitate the search-and-record function of PVRs. Content will become more important than channels, and as subject-content becomes a commodity, context or ‘attitude’ towards content (e.g. MTV, or Lonely Planet on Discovery Channel) will become the differentiator. Pay channels will have to give way to pay-per-view programmes. Content will have to be re-engineered to promote and facilitate interactivity with the viewer, and will have to be backed up by (or linked to) associated databases. The whole paradigm of advertising will have to change, and seamless advertising, embedded in programmes, will be the norm. Advertisers will then invest or co-produce programmes rather than buying time (spots) on TV. Marketing will take a full circle, from promoting and selling programmes to channel marketing and now back to selling individual programmes. The challenges in managing technology, creativity and change will need new strategic insights, even as research and delving into the mind-space of the consumer become more important. Even as these changes become inevitable, they will be adopted by users (viewers) only slowly. Habit, culture and the human psyche will ensure that the passive, inane, but well-packaged entertainment programmes continue to rule the roost. In the short and medium run, then, conventional TV will continue to thrive; but those looking at longer time horizons had better plan for a time when conventional TV sets join the slide projector, the radiogram and the typewriter in the attic.
(The views expressed here are those of the writer)


 
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