‘We have complete
monopoly in rural markets’
source:http://www.livemint.com/Companies/pZ7c37BNBqCrra2cQAMJfO/We-have-complete-monopoly-in-rural-markets.html
Prasar Bharati chief executive officer Jawhar Sircar
talks about its revival plan and how it proposes to generate
revenue
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Sircar says around 2.5 crore
viewers are completely loyal to Doordarshan. Photo: Pradeep
Gaur/Mint
New Delhi: Public service broadcaster
Prasar Bharati’s debt—Rs.12,071.33 crore—was written off by the government
recently. Jawhar Sircar, who’s spent eight months as CEO of Prasar Bharati,
comprising Doordarshan and All India Radio (AIR), that was set up as an
autonomous body in 1997, said in an interview that this would help the
organization turn itself around. Edited excerpts:
What does the debt write-off mean for Prasar Bharati?
As long as
you have debt on your head on which interest is ticking—it does not matter
whether you are able to pay it or not—it remains a burden. At any point of
time if anybody wants to scuttle something, they can say ‘you have unpaid
debts of so many thousand crore’. You can’t really come out and win public
confidence when you have a lot of debt piling.
How do you plan to meet your operational expenses? (Expenditure on
salaries will be borne by the government)
Once you declared Prasar Bharati to be a separate organization (with 341
kendras—67 television and the rest radio stations), or when you are
setting up transmitters and satellites and have people employed for public
service broadcasting, then someone has to pay for it. What we are
following is a mixed model. People outside think that we are completely
subsidized by the government, therefore we are not cost-conscious. That is
not true. For instance, in the 11th Five-Year Plan (2007-12), we earned
Rs.6,000 crore in a difficult time (at the time top Prasar Bharti
executives were facing allegations of financial malpractices; CEO B.S.
Lalli had to be removed). The government gave us another Rs.6,000 crore
during this period. So the ratio was 1:1 during the 11th Plan ending March
2012.
We got additional Rs.1,600 crore from the government for changing
transmitters that were 40 years old, cameras which did not move and lights
that had got lost. If we had tried really hard, this Rs.1,600 crore could
have been split 50:50 too. We could have generated Rs.800 crore.
Now our earnings will go into operational expenses such as spectrum and
other charges, local taxes, vehicles, content and advertisement. Our own
publicity budget has disappeared.
What is your revenue target?
For this Plan
period, our target should be Rs.9,000-10,000 crore or Rs.2,000 crore a
year. We have explained it to our officers. We should make Rs.1,800 crore
this year. There are welcome signs. For instance, during the Athens
Olympics (2004), we made Rs.5 crore, which went up marginally to Rs.5.5
crore for Beijing Games (2008). For the London Olympics this year, we
earned Rs.16.9 crore.
Also, under the new strategy of simulcasting where someone else produces a
programme and we also telecast, we earn a lot. For instance, Coke Studio
(an MTV show simulcast on DD) makes Rs.25 lakh per episode for us. On
Satyamev Jayate, we made Rs.14 crore.
How will you reach the Rs.2,000 crore a year target?
We are talking of a complete revamp of the marketing channel. It consists
of two additional directors general (DGs) and their teams in Mumbai, where
the companies are located. Currently, roughly half the revenue comes from
the marketing wing and the other half from government commercial wing.
There are a lot of doables on these two counts.
The recent report by Crisil and NSSO (National Sample Survey Office) shows
that the highest consumption is taking place in the rural areas. Not even
our worst rivals can doubt we have complete monopoly in that market,
especially in villages with scattered houses. Even in the most difficult
places, we have terrestrial transmission.
Then there is DD Direct Plus, the direct-to-home (DTH) television of
Prasar Bharati. With a set-top box of Rs.900, you watch at least 55
channels free for a lifetime. You don’t see DD Direct dishes because when
we introduced these boxes, the only dishes available were already branded
by the private DTH operators. The dish that you see in rural homes may
carry the name of a private brand, but if you go inside they will have a
DD Direct box. There are roughly one crore DD Direct DTH homes. There
would be another at least 1.5 crore terrestrial-only DD homes. So 2.5
crore viewers are completely loyal to us. All the private operators also
carry DD.
Marketing has to relate to reports that come out periodically that rural
India spending is higher than urban India. We are rural India. That nexus
has to be drawn.
Today AIR and DD News are lumped together with DD main when they are sold.
These have to be sold separately. For that, repositioning and freshening
up of DD News is happening. On our DTH platform, we plan to begin default
advertisements. All the private operators have these when you switch on
their systems. So, unlike them, I cannot charge the customer, but I can
charge the company.
We can also get a bigger slice of advertising from government and public
sector undertakings. There is a revenue consciousness that is coming in.
Any plan to tap the archives?
There is
pilfering of archives, which is being checked. They are being digitized.
We should be able to charge for the use of archival material. We could
market the archives online. For instance, we could put some up on YouTube
and say, for the rest, come to us. This is ‘Backwardistan’. This is
because no fresh recruitment has taken place in the last 15-16 years.
But with 50,000 people, you don’t need any more.
No. The 50,000 has come down to 34,000. Many people will be retiring in
two to three years. For every three people, we will replace one. That is a
way of downsizing.
What about voluntary retirement schemes?
That is not required. Terrestrial transmission is a labour intensive
industry.
But how do you boost employee morale?
It is looking up. We went though the first-ever zonal co-ordination
meetings in history of Doodarshan and AIR.
We took G9, that is the group of nine people (all the DGs, members,
finance and personnel, and the CEO) who run Prasar Bharati, for these
meetings. These people have never been on the same page. Or let me say
that they have been working on different pages. So we got them on one team
and went down to the station level for interactive sessions.
Is Prasar Bharati a public service broadcaster or a commercial venture?
For revenue,
we would have to be public taste-oriented. Without crossing the Lakshman
Rekha on decency, family values and other sensitivities on caste, language
groups, community and gender. We have a much smaller playing field. We
have these concerns to keep uppermost in our minds. I am not saying others
don’t, but they can show more glitzy shows, which may not be considered
family shows.
In news, our slogan is: if you want news, watch DD News, if you want
views, you can go to other channels. Our news anchors are not screaming at
the top of our voices ‘Why aren’t you doing this? or ‘The nation wants to
know... I embody the nation.’ We don’t have all those tensions. We give
balanced news, which may be a little tepid at times.
I have to earn 50% of our keep. So, while I may not cross the Lakshman
Rekha, we will have to have (a) little operational freedom.
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