The Business of TV: ‘Are ratings really the best judge of what viewers want?’
Journalists highlight that the ratings were being used for manipulation of content.
(From left to right) Journalist Mazhar Abbas, ET publisher Bilal Lakhani, journalist Afia Salam, Starcom CEO Farhan Qureshi, moderator Rahma Miah and T2F owner Sabeen Mehmood at the T2F café on Friday. PHOTO: AYESHA MIR/ EXPRESS
KARACHI:
The revenue of Pakistan’s television industry, which was earlier Rs22 billion, jumped to Rs26 billion in 2012 and stands at approximately Rs28 billion rupees this year - these staggering figures were shared by the speakers at T2F’s panel discussion on ‘Money Matters: The Business of TV’.
“Around 90 to 95 percent of the Rs28 billion comes from advertising and five per cent comes from syndication or from programmes sent abroad,” said Bilal Lakhani, publisher of The Express Tribune, at the event held on Friday. “TV channels in Pakistan make absolutely no money from subscriptions while in foreign markets, revenue from subscriptions make up the largest share of the money.”
For advertisers, television is one of the most effective media as it has a large-scale outreach and to attract advertisers, ratings play a vital role. Starcom CEO Farhan Qureshi explained that the ratings are measured through what they call the ‘People Meter System’ of 675 meters installed in people’s homes in up to eight cities.
How to rate the ratings
The system is based on an automated device attached with television sets which records the frequency and time of the shows and channels being watched. “Decisions worth billions of dollars are based on one small movement in the number of ratings. It’s still not the most perfect system but we have to use it since it’s the only one,” Qureshi said.
Journalist Mazhar Abbas added that, “The People Meter System is a faulty one as there isn’t even a single meter in Balochistan.” Out of 675 meters, 365 alone are in Karachi leading to the question of one how can determine if a certain channel is actually the most popular?
Qureshi pointed out, however, that the system was an expensive one; a single meter costs around $11,000, which is why it was being installed at select locations.
Journalist Afia Salam said that the rating system was subjected to manipulation and affected what people watch on television. “The urban centre does not represent the entire country,” she argued. “This is where segmentation has disappeared and manipulation has cropped up.” Lakhani, who is also involved in running Express Media Group’s TV channels, was, however, in favour of the rating system. “People say that 675 meters were not representative, but I disagree based on my experience. Ratings give us a target,” he said, admitting that they also lead media groups towards sensationalism. “The media creates hype and sensation for higher ratings.”
He went on to argue that the rating system was “democratic”. “We give you content that you want,” he added, referring to the use of Bollywood music during news bulletins. “People get to vote for what they want to view through this system. A large number of viewers watch Geo TV, which at times plays Bollywood music in its headlines, indicating that the formula is working.” Salam, however, was of the opinion that journalism and news channels should not be dictated by a mere 600 households. “Nowhere in the world do news bulletins run songs,” she retorted. According to Abbas, the most popular topics on the media were the three Cs - crime, cricket and celebrities. “No matter what happens, journalists always end up stuck in the middle - if there is a ban on a channel, journalists are out there protesting and simultaneously, saving the business. And if a business is not doing well, journalists are still the ones to suffer,” said Abbas.
Published in The Express Tribune, September 29th, 2013.
The revenue of Pakistan’s television industry, which was earlier Rs22 billion, jumped to Rs26 billion in 2012 and stands at approximately Rs28 billion rupees this year - these staggering figures were shared by the speakers at T2F’s panel discussion on ‘Money Matters: The Business of TV’.
“Around 90 to 95 percent of the Rs28 billion comes from advertising and five per cent comes from syndication or from programmes sent abroad,” said Bilal Lakhani, publisher of The Express Tribune, at the event held on Friday. “TV channels in Pakistan make absolutely no money from subscriptions while in foreign markets, revenue from subscriptions make up the largest share of the money.”
For advertisers, television is one of the most effective media as it has a large-scale outreach and to attract advertisers, ratings play a vital role. Starcom CEO Farhan Qureshi explained that the ratings are measured through what they call the ‘People Meter System’ of 675 meters installed in people’s homes in up to eight cities.
How to rate the ratings
The system is based on an automated device attached with television sets which records the frequency and time of the shows and channels being watched. “Decisions worth billions of dollars are based on one small movement in the number of ratings. It’s still not the most perfect system but we have to use it since it’s the only one,” Qureshi said.
Journalist Mazhar Abbas added that, “The People Meter System is a faulty one as there isn’t even a single meter in Balochistan.” Out of 675 meters, 365 alone are in Karachi leading to the question of one how can determine if a certain channel is actually the most popular?
Qureshi pointed out, however, that the system was an expensive one; a single meter costs around $11,000, which is why it was being installed at select locations.
Journalist Afia Salam said that the rating system was subjected to manipulation and affected what people watch on television. “The urban centre does not represent the entire country,” she argued. “This is where segmentation has disappeared and manipulation has cropped up.” Lakhani, who is also involved in running Express Media Group’s TV channels, was, however, in favour of the rating system. “People say that 675 meters were not representative, but I disagree based on my experience. Ratings give us a target,” he said, admitting that they also lead media groups towards sensationalism. “The media creates hype and sensation for higher ratings.”
He went on to argue that the rating system was “democratic”. “We give you content that you want,” he added, referring to the use of Bollywood music during news bulletins. “People get to vote for what they want to view through this system. A large number of viewers watch Geo TV, which at times plays Bollywood music in its headlines, indicating that the formula is working.” Salam, however, was of the opinion that journalism and news channels should not be dictated by a mere 600 households. “Nowhere in the world do news bulletins run songs,” she retorted. According to Abbas, the most popular topics on the media were the three Cs - crime, cricket and celebrities. “No matter what happens, journalists always end up stuck in the middle - if there is a ban on a channel, journalists are out there protesting and simultaneously, saving the business. And if a business is not doing well, journalists are still the ones to suffer,” said Abbas.
Published in The Express Tribune, September 29th, 2013.