Your agency has consistently been at the forefront of television advertising in Nepal. How would you introduce your business and the industry you are in?
We are a team of think-alike people, and it has been a collective achievement so far. The Nepali television industry has come a long way as the industry grew manifold, thanks to investment in news and programming as well as technology. Today, the television industry employs over 3,000 people, ranging from journalists to production, engineering, administrative and marketing professionals. The main source of revenue is advertisements. And, the whole advertisement segment has also evolved remarkably in these years. We have seen the whole transition, from VHF tapes to DV tapes and now to transferring audiovisuals digitally across various TV stations from your own office. As a media buying agency, we take pride that we also contributed to this transition positively which helped the overall industry to expand. Of late, with the growing number of TV channels, there is also the issue of sustainability that is being increasingly discussed within the TV industry. As TV channels fight for advertising revenue that has not grown, do you think these channels will survive? We have seen flooding of TV stations, from satellite TV stations to regional TVs and those promoted by TV channel distributors in recent times. Around 200 satellite TV stations have taken licenses, of which over 60 are currently in operation. Even when operated in a very minimalistic manner, the combined operating cost of these channels would be approximately Rs 3 billion. However, the size of the advertising market has fallen post-Covid, and even further due to the current economic slowdown to around Rs 2 billion. How can advertising sustain the television industry in this scenario? On the other hand, there is a lack of investment in content and broadcast quality. For any TV to have a huge following, one needs to have programs that are attractive, and intriguing for the viewers. Instead, what we see is that most TV stations have the same kind of programming. And, there is also a serious dearth of specialization. Internationally, sports channels are the most expensive to subscribe to. The world has realized that live sports generate the highest viewership. Unfortunately, we are going one step further in Nepal, killing the exclusivity of TV broadcasts by coupling it with the concurrent digital broadcast. Reality shows, series, sports, and everything are available on YouTube, and this is the main reason behind the falling TV subscriptions. And to add to this is the Clean Feed debacle. International channels were supposed to be free of advertisement, but we have to see the same irritating promotional spot repeatedly. TV watching has become unpleasant with average content, subscriptions have fallen, and with the economic slowdown, it is natural that advertising revenues have also declined. What are the pressing issues plaguing the TV industry? Why is the Nepali advertisement market not able to sustain the growing number of TV stations? Despite the economic slowdown, the number of new media outlets is growing. The situation is such, every advertiser faces a huge dilemma today. While the advertiser's advertising budget has not grown, they are getting increased follow-up from the media marketers. Rather than advertising on the media platform that suits their target group, advertisers are literally forced to balance the media, particularly the smaller media outlets that resort to unfair practices. I am personally aware of some larger advertisers forced to distribute ads proportionately across larger to smaller media. Everyone wants to run a news channel – every TV, every online portal, and every YouTuber. And then there is an absence of television and media rating mechanisms. In India, the TRAI, the government body, rates media by their reach and popularity or following. There is no such mechanism in place in Nepal. The economic downturn has impacted all businesses across Nepal. But you say that a 'lack of regulation' is hurting television media. Are you hinting that there is a lack of regulation across the media sector of Nepal? Yes. If we look at the huge investments made by satellite TV stations in broadcast equipment, satellite and carriage charges, generating employment, licensing fees, royalties, and taxes, how is it fair for them to compete for viewership with one individual flashing a Go-Pro or cell phones and broadcasting live news on YouTube? Globally, TV is still considered the most credible or trusted source of information. Major TV stations ensure the source or accuracy of news before broadcasting, or otherwise, they have to face complaints and a hit to their credibility. While the developed world is out there battling fake news and taking Facebook and Twitter to court, we in Nepal, are allowing 'one-man armies' to broadcast news unabashedly. It is only fair that the government regulates online and social media before too much damage is done. If the TV industry falls, thousands of jobs, huge investments, and families will suffer. Media owners also need to do their bit. They must lobby with the government to ensure appropriate regulation, and maintain the exclusivity of their content. They must stop immediate or concurrent digital broadcasts. Look at international practice—one may be able to enjoy a short clip of a program on digital platforms only after one to four weeks, but you will not find the entire program on YouTube. Similarly, TV stations should not be marketing themselves based on YouTube or Facebook views, and content makers should stop developing content solely for digital platforms. Don't you think TV stations also need to upgrade their content and broadcast quality? Not all TV stations are of low quality. TV stations such as Nepal TV, Kantipur HD, Himalaya HD, AP1 HD, and Galaxy 4K have spent millions on quality equipment, and are investing big in programs and reality shows. Many TV channels have staff or stringers throughout the country. But not all TV stations have invested in broadcast equipment, human capital, and content quality. We could introduce some strong provisions to open a TV station, such as increasing the license fee and setting criteria for infrastructures. Let there also be regulation for existing channels to ensure the quality of their broadcast standard. TV viewing would become more pleasant with better broadcast quality. And, it is also the responsibility of TV channels to make people watch TV. There are sufficient examples in India, of how they dramatize series, news, and reality shows, adding intrigue to their presentation to ensure viewership. This was possible due to their separation of production and broadcasting. They outsource content production, while still retaining creative control. The very existence of production companies depends on the quality of their output. Don't you think there is also a lack of regulation on digital advertising in Nepal as well? I am confident that the central bank has no data on the size of digital marketing in Nepal. At the outset, it would seem that advertisers are spending only some of their budget on digital advertising. But, a large number of small budgets adds up to a large outflow of forex. And does the country benefit from that spending? Traditional media would pay taxes on their earnings to the government. Does Google or Facebook pay taxes to the Nepal Government? In addition to this, there is an issue with clean feed. Nepali TV channels are not supposed to play foreign or dubbed advertisements. But these very advertisements can be played on digital and outdoor media platforms. How is it fair? Why would advertisers then develop localized advertisements if they can do it on digital and outdoor media? They would simply change the medium of advertising, replacing TV with digital media. And then TV advertisements must be censored to ensure no misinformation. Digital platforms go uncensored, untaxed, and unregulated. It is high time the government took these matters seriously. Not doing anything means bidding farewell to the Nepali TV industry. If the advertisement market cannot sustain the growing number of TV stations, how can we expect them to invest further in content and broadcast quality? Under current circumstances, the market cannot sustain the growing number of TV stations. Look at the international practice where TV stations earn almost equally through advertising and subscriptions. Nepali households pay handsomely to watch foreign channels but want to watch Nepali channels for free, and then complain about content and broadcast quality, comparing them with Indian shows. Isn’t that hollow nationalism? If Nepali TV channels give strong content backed by the international-level production quality, why would people need to watch foreign channels? But, for this to happen, Nepal must embrace the subscription model. This is not a new concept though, the industry has discussed this for over a decade, but has been unable to implement it due to differences between TV owners themselves and TV distribution companies. Should they embrace it, subscription revenue would pave the way for further investment in content quality, and the competition between TV stations would automatically filter out stations that don’t invest in quality and content. TV channels can price themselves based on demand, viewers are able to pick and choose the channels they are willing to pay for, and advertisers have a strong basis to select where to advertise.
