The Goan: What do MPA’s data and research say about DigitalDawn?
Vivek Couto: India has approximately 140 million TVhouseholds; we believe that over the course of next seven years, these homeswill be digitalised, which means customers will get set top boxes, digitalquality TV channels, audio and video, and a choice of a host local and regionalchannels. It means that providers of digital TV services ” cable and satelliteoperators “ will require capital and receive significant sums of investmentfrom home and abroad (as FDI has been allowed at 74 per cent) -- it will alsolead to the growth of broadband services and contribute significantly toIndia's entertainment and information economy.
TG: What transformation will Digital Dawn bring in thebroadcasting, pay television, broadband and advertising industries?
VC: The ball now lies in the hands of the 60,000 or so cableoperators that serve approximately 90 million homes. It’s a game changeropportunity, not just for last mile local cable operators but also for multisystem operators and other key players in the ecosystem including broadcastersand content providers; production houses; DTH operators; technology companies;strategic and financial investors; and the end consumers. The government’s moveto increase FDI to 74 per cent in cable and DTH will also act as an importantcatalyst.
TG: How will the cable operators benefit in the digitisationprocess?
VC: Ultimately, there are even better benefits and morecomplexities. Digital for just digital TV's sake is not what cable is about theworld over; in the USA, the investor returns for just pure play pay-TV arebetter at DTH than for digital cable but cable's return path, its ability tooffer broadband and telephony, and its ability to provide multiple products ina bundle, has been a winning proposition.
TG: What would the end consumer gain from digitisation?
VC: Interactivity, VOD and broadband, of course lead to anew world of opportunity; in India, we’ll also have wireless broadband from2014 onwards. The combination will provide massive momentum for new modes ofcontent distribution, also part of the digital ecosystem with many of thesechallenging traditional cable and DTH for supremacy, a decade from now orperhaps even sooner.
