The conditional access system (CAS) has been touted as the answer to frequent subscription revenue disputes between broadcasters and cable operators. Its central feature is a set-top box, which is to be installed in cable homes to gauge the popularity of channels and programmes.
However, broadcasters and media agencies have questioned CAS' feasibility, basing their reservations on the availability of the set-top boxes and the high price that viewers may have to pay - US$100 per box. "I don't think the majority of people will be able to shell out $100, which is slightly less than the cost of a black-and-white TV," said Lintas integrated marketing action group director, Ashish Bhasin.
Jasmin Sohrabji, MediaCom senior vice-president, added: "It took so long for people to pay about $2 for monthly cable and satellite connectivity so it won't be easy to switch to set-top boxes and hike monthly charges."
Star India senior vice-president of corporate communications Yash Khanna is expecting the worst. "An expensive box, a higher monthly cable fee and a lack of education will cause confusion which will mean that the viewership of pay channels is set to suffer."
Despite concerns about eroding viewership, pay-TV channels such as Star insists they have no plans to go free-to-air because a substantial proportion of its revenue is generated from subscriptions. Star's ad revenue last year totalled $180 million, with another $50 million coming from subscriptions.
Delhi, Mumbai, Chennai and Kolkata have been designated as the first cities where CAS will initially be implemented. Six million set-top boxes will be required, representing about 20 per cent of India's total population of cable and satellite homes.
There is also speculation that there may not be enough set-top boxes.
Even if CAS is not implemented by July 14, media planners are drawing up contingency plans. MediaCom's Sohrabji said: "We might relocate some of our planned budget to free-to-air channels. If, say, Star Plus is not doing well in Delhi and Mumbai, the channel will still continue to perform well in non-CAS cities. So we will negotiate with broadcasters in CAS areas but Star will still be part of our plan for the rest of the country."