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Underreporting rampant in cable TV business

Conditional access system (CAS) was introduced in some parts of the metros recently to bring in transparency in the market.

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New DELHI: To substantiate what television channels have been alleging for long, the Indian Broadcasting Foundation (IBF) recently got a study done to assess the extent of under-declaration of subscriber numbers.

The result: In most places surveyed, the actual subscriber numbers were found to be many times more than that reported by the local cable operators.

IBF, the apex body for broadcasters, got the study conducted through Centre for Media Studies (CMS) across 11 cities in India. The sample size was at least 1,100 households in every city.

In Ajmer, for instance, the CMS survey showed that the subscriber base of a particular cable operator was 79,010, while the number reported by multi-system operators (MSOs) was 18,000 and local cable operators put the number at 34,650.

So, the subscriber number, as shown by the CMS survey, was four times that reported by the MSOs in Ajmer.

In Dhanbad, while MSOs reported only 4,550 subscribers for a particular cable service provider, the local operators put the number at 8,225. But, the CMS survey showed that the subscriber number was 18,000 there.

In Pathankot, the difference between the subscriber number reported by the cable operators and the survey is not very significant. While MSOs reported 22,000 and local operators 20,000, the CMS survey put the number only marginally higher at 26,877.

Of the other places surveyed, in Akola, MSOs reported 15,000 subscribers, local operators 30,000 and the CMS study said the number was 38,302. In Amravati, MSOs reported 18,000, local operators 29,000, and the survey 55,800.

In Bhiwani, MSOs declared 5,000 subscribers, local operators 8,000 and the survey put the figure at 25,650.

In Sirsa, MSOs reported 6,000 subscribers, local operators 10,000 and the CMS survey 28,265. In Alwar, MSOs reported 7,500 subscribers, local operators 9,250, while the survey put the number at 24,468.

Under-reporting of subscriber numbers by cable operators has been a major issue in the broadcasting industry, as subscriber numbers translate into subscription revenue for a pay-TV channel. Typically, there are two streams of revenue for TV broadcasters-advertising and subscription.

Conditional access system (CAS) was introduced in some parts of the metros recently to bring in transparency in the market.
 
 m_nivedita@dnaindia.net

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