When the conditional access system was switched on in January in New Delhi, Mumbai and Kolkata, affecting 1.8 million households, the impact on advertisers was immediate— and disruptive. Advertisers and their agencies demanded discounts or compensation for the drop in number of households, especially those in up-market areas. So far, their pleas have been rejected. “Broadcasters are holding on to prices and are not willing to offer compensation. There is total lack of clarity in terms of how many households are affected,” said Meenakshi Madhvani, founder and managing partner of Mumbai-based media audit firm Spatial Access. “Anecdotal feedback across the three cities shows many households have lost the channels they used to watch. In some cities cable networks have run out of STBs (set top boxes) and DTH providers have a month-long waiting list. The situation is chaotic.” She does not see any short-term impact on the pay-TV market, which accounts for about 72% of total TV advertising, reasoning, “Channels have their deals in place with the MSOs (multi-system operators) and there is no reduction being entertained since there is mass under-
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