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These toys sure sound cool. But there's more to the mile than just the funk By Nitya Varadarajan
These reactions are not isolated thoughts, as a CII seminar on media and convergence reiterated. While the public quite liked passive entertainment, a little bit of interactivity was OK---particularly when it was programme-related and allowed the half-lazy viewer a choice of watching a programme on demand. This could be followed by online ordering at the local retail store and browsing through quick snippets of information of local interest. The PC would have its hi-tech range of activities, but the idiot-box is not expected to get very intelligent---at least for the next couple of years. In short, TV is patronised, but the PC is still considered by many as a necessary evil. Remember, that the narrowband set top boxes that allow e-mailing through TV are yet to take off. But broadband set-top boxes could well be the key, heralding a new era of entertainment, provided real value is offered. Every broadband service operator who started off as an MSO offering cable internet services in the first phase is now looking towards tapping the cable TV viewer through other services. After all, investments are aimed at upgrading network infrastructure, particularly in the metros. While the existing MSOs have the initial advantage of already having cabled homes by linking with the kiranawalla cable operator, the other broadband service players are only waiting in the wings to grab the same partners. ``We cannot sit complacently claiming first mover advantage on the infrastructure,'' says Hathway Cable and Datacom Vice President E.V.S. Chakravarthy, referring to the MSOs who are better placed at tapping the home. "We have to be quick in coming out with the set-top box and market them in the areas where we are present,'' he said. The reason for haste is obvious. Various MSOs/BSPs will have their own specifications in the set-top boxes they will be bringing into the market. Each will claim that its signals are best transmitted or the services best provided through its particular box. With new technological developments happening every quarter worldwide, each BSP will push the most 'advanced' chip. Initially at least, the consumer is expected to ride on the bandwagon of his current BSP and opt for his box. By selling the box first, the BSP has the
advantage of hooking the customer on to his stable for some years---for,
people will not discard set-top boxes Spectranet has got a box, so has HFCL. Zee has tied up with Dishnet for a DTH set-top box. Sun Cable is looking out for a no-frills one and Star-Hathway combine is studying customer concerns and requirements before it launches the suitable one, Intel has invested in IndusInd Media that its chip may be used in the box. Get the box ready and rough it out seems to be the mantra. Let the customer decide on the merits of the Rs 15,000 box, the Rs 12,000 box, the Rs 9000 box and the nofrills box of Rs 5,000. The war of the box is expected to begin next fiscal when the backbone infrastructure would be more sound. The fight would be on to make the customer bite. ``The chip inside the box and its memory capability will be the driver for the product'' says Chakravarthy. The customer will truly have to make an informed decision ``on the frills'' and to the extent he requires them. The customer will also see how much he has to pay every month and whether the service comes up to expectations of costs levied. For, hidden in the agenda of the set-top-box is the addressibility system, which will favour the broadcaster and the broadband service provider first . Currently the home viewer gets his channels cheap---at Rs 100 to Rs 150 per month. The box would make the viewer cough up more, citing value-add. The BSPs would have to introduce leasing/financing options to tempt the viewer to buy the box. But from the latter's perspective, it is important that the `last-mile' cable operator does not get marginalised in the process. He would be the only buffer between the customer and the broadcaster and the BSP---ensuring value for service. INTERNET RADIO: Good ol' radio. There's a lot of excitement in the air about broadband services and multimedia entertainment, but the projects are still in cyberspace. Closer to the ground is radio internet, which works better in a constrained bandwidth environment with good network management. Many portals and radio stations are realising its potential. ``It may be a nascent industry yet, but India has got a strong radio medium,'' says Raj Raman, Vice president Sify.com. ``FM channels have caught on with the youngsters and transition to the browser would be much easier," he adds. Indeed, with many dotcom businesses in the doldrums, a diversification into entertainment segment like the radio-on-net appears attractive. It's a sure way of capturing eyeballs, or at least ears! At the receiver end, a Windows medium and a 28 kb modem would do the trick, provided adequate load balancing is done by the network. Apparently, in the US, where radio net has matured, the average number of listeners do not exceed 1,000 at any point of time. That the nascent market in India cannot point to more is a submission. There are, of course, hurdles: acquisition of content, the programming of channels, copyright charges, and network infrastructure. Few companies have all the advantages. Radio FMs have the content, but not the infrastructure, while ISPs have the infrastructure but not the content and expertise for this business. Independent portals only have some funds and an inclination to begin---if they knew how. Here come the enablers. Two dedicated companies---radioofindia.com and induslive.com, both from Silicon Valley---are willing to act as readymade radio stations and link to the portal through a secure distribution network. After that it's plug and play. Recently, 123India.com launched its web radio channel in conjunction with radioofindia.com, showing the way. Others are waiting in the wings. Says Jai Durgam CEO of Induslive, down from Silicon Valley to gauge the market, ``The response has been very encouraging. All along, the internet radio players focussed on NRIs and small communities, but we would be looking at the Indian market in totality," he adds. Induslive has got 32,000 tracks and is adding 4,000-5,000 a week. The collection encompasses Karnatic and Hindustani classical music, film songs and folk songs in various languages, north and south. The company creates programmes which it relays directly or in response to scheduling; allows for juke box facilities (my radio page) and also has an advertisement server that will integrate the ads with the programme relay in accordance with user profile and requirement. For a portal, this would mean plug-and-play and that could be the start of several streaming channels. Induslive has also got the data streaming in place (information about the music being played, profile of singer, and so on) at the same time. Advertisements would play an important part in revenue generation, though it would not be significant in the early days. But charges would be more than conventional net advertising, as it's audio and video relays that we're talking, says Jai Durgam. His existing infrastructure is capable of supporting 75 programmes at any given time. This end-to-end solution---operational upon license from either Induslive or Radioofindia---is also modular. As Raj Raman says, ``If Satyam were to look at radio internet, we could go for any of the three options---an end to end contract, a tie up with one partner for technology and content, or content alone. The start up cost for base-level operations in 3 cities could be anywhere between Rs 15-20 lakh on the infrastructure front. Music rights work out to Rs 5.50 per song. Now it remains to be seen if the portals are, well, Radio Ga Ga! |
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INTERACTIVE TV: Will the PC ever
replace the TV for streaming video entertainment? An informal survey by
this correspondent revealed a clear answer: no. Reason: the respondents
would rather put up their feet, sit some distance away and watch the idiot
box. How about interactive TV? Fine, as long as it was easy to be
interactive and the price paid for making the upgrade was not high.