Media in Pakistan: Strengths & Weaknesses

Code of Conduct for Media and Good

Practices

• Print/Newspapers were the face of Media Industry till

Deregulation in 2002• Deregulation led to the creation of a dynamic and vibrant

Electronic Media Industry

• Today Media Industry comprises three strong Pillars – Print, TV and Radio

• PEMRA was created in 2002 with a mandate to regulate the

newly deregulated Electronic Media Sector

• Today there are more than 60 local channels operating with many more licenses issued

• As Print sector was well established and norms of business were well defined/evolved, most of the issues facing Media sector are related to Electronic Media

• Ungoverned TV Channel License Issuance

• Absence of enforceable Programming and Advertising Codes of Conduct

• Obsession with Ratings leading to excessive commercialism and sensationalism

• No protection of content copyright – illegal content being aired indiscriminately

• Lack of Transparency in the Use of Government Advertising Funds

• Local Channels uncompetitive against foreign content – broadcasting industry becoming unprofitable

• No defined content parameters for Children/ Senior Citizens etc.

• Lack of standardized enforcement on public service programming

• Primary problem lies at the Regulator’s end. PEMRA ineffective due to:– Placement of PEMRA under Ministry of Information– Politically motivated Appointments– Emphasis on forcing cable operators to switch certain channels

on and others off as per the channels’ conformity with government policies

– Rampant Corruption– Ineffective enforcement of existing PEMRA regulations related

to copyright and foreign content

• Serious effort needed behind getting all stakeholders together to formulate a Code of Programming and Advertising Conduct

• Unfortunately, this is another area where PEMRA has failed in implementing the law

• Many channels are airing pirated content indiscriminately• No penalties of action is being taken as PEMRA is turning a

blind eye due to entrenched vested interests• As a result, Media Houses airing Copyright/Paid content are

becoming uncompetitive• There should be a crackdown on Illegal/ Pirated content

across the board through an autonomous PEMRA• Any Channels airing pirated content should be given a

warning and if the offence is repeated, their licenses should be cancelled

• There is a direct Conflict of Interest in PEMRA being placed under Ministry of Information– Same Ministry manages PTV and PBC which PEMRA is supposed

to regulate– Ministry of Information is tasked with presenting and promoting

Government’s viewpoint – PEMRA cannot be made a party to political point settling

– PEMRA cannot be expected to neutrally chastise the Government for biased/non-transparent use of Advertising funds while it is under MOI which releases most of these funds

• PEMRA ought to be brought under the Cabinet Ministry like other Autonomous Bodies (which was the original Charter of PEMRA)

• Chairman PEMRA to be appointed through consultation between Leader of the House and Leader of the Opposition

• PEMRA Board Members to be appointed through XXXXXXX

• Awareness, crime reporting, common people issues addressed

• Changing mindset of peoples, providing opportunity to Govt. & opposition to provide their views

• Putting check on corruption of Govt., Bureaucracy, Business Tycoons (Mansha) & Media Tycoons (MSR)

• Data, Documentation of History (9/11)

• Sectarian Harmony; mitigating effects of Aashura Clash

• Govt is more answerable

• Improving Lifestyles

• Internationally TV Channels (especially News Channels) have two sources of Revenue– Advertising– Subscription

• In Pakistan PEMRA law stipulates payment of subscription revenue to Broadcasters

• No subscription revenue is being collected or paid to Broadcasters

• As a result, Channels are 100% dependent on Advertising Revenue and hence Ratings

MEDIUMS BREAK UP (IN TERMS OF SPEND)

- 80+ Channels are available for local advertising- TV continues to be the biggest medium followed by Print

61%18%

9%

4%4% 3%1%

Television

Newspapers

Outdoor

Magazines

Cinema

Radio

Internet

“comparing all mediums, Television remained

highest”

SECTORS BREAK UP – Jan to Dec 2012IN TERMS OF SPEND AND AIR TIME

- FMCG Lead the category in terms of Spent and Air Time both.- Unilever played significant role in FMCG sector- In Telecom - Ufone, Mobilink , Telenor, and Zong continue to lead the category

51%

22%

21%

3% 3%

Sector Share% in terms of Spend - 2011

FMCG

TELECOM

Others

Real Estate

Financial Services

51%

17%

25%

5%

2%

Sector Share% in terms of Air Time - 2011

FMCG

TELECOM

Others

Real Estate

Financial Services

TOP 10 COMPANIES DURING Jan to May 2012-13IN TERMS OF EST. SPEND

- Unilever remained highest spender with a significant share followed by P&G and Mobilink. - All 10 companies came from FMCG and Telecom.

14%

8%

4% 4% 4%4% 3%

3% 2% 2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

UPL P&G MOBILINK RECKITT UFONE PEPSICO INC. NESTLE COCA COLA COLGATEPALMOLIVE

ZONG

Top 10 Companies in terms of Spend (estimated)Jan - May 2012-13

SECTORS BREAK UP – Jan to May 2012 IN TERMS OF SPEND AND AIR TIME

- FMCG Lead the category in terms of Spent and Air Time both.- Unilever played significant role in FMCG sector- In Telecom - Mobilink ,Ufone and Zong continue to lead the category

55%

14%

24%

4% 3%

Sector Share% in terms of Spend - 2012

FMCG

TELECOM

Others

Real Estate

Financial Services

53%

10%

29%

5%

3%

Sector Share% in terms of Air Time - 2012

FMCG

TELECOM

Others

Real Estate

Financial Services

The Problem

• Valentines Day• Mothers Day• Halloween• Holi• Christmas, Santa & Coke• Women's Day• Ignoring 23rd March or 14th August• DFID, AMAN KI ASHA, VOA• Foreign Advertising (one Source)

• It is ironic that current Government Advertising is being done by non-commercial Government arms like PEPCO, Culture, BISP etc. while commercial arms like PIA, Railways etc. have almost zero Advertising presence. This exposes the real purpose behind these advertising campaigns

• ALL GOVERNMENT ADVERTISING FUNDS ALLOCATION SHOULD BE AVAILABLE TO GENERAL PUBLIC ALONG WITH THEIR ALLOCATION TO EACH MEDIA HOUSE. This information should be made available online

• Advertising Rates for Government Campaigns should be rationalized in consultation with Industry Bodies to eliminate any deliberate biases in Advertising Rates

• Currently no content parameters are being enforced by PEMRA

• Channel License rules mandate 10% programming time for Public services programming

• Government should engage Media Houses through their representative body PBA and define a quarterly schedule of Public Service priorities

• Media Houses should be free to create and air their own programming on the mutually agreed Public Service priorities

• Recently there has been avalanche of Foreign Content on Local entertainment channels

• This content is available at a fraction of the price required to create local content

• Therefore Local Entertainment Industry is becoming uncompetitive• Current PEMRA rules have a grey area whereby

– International Channels having landing rights permission are allowed to air 100% foreign content

– Foreign Content is defined by its source and not its language – therefore an International Channel can air 100% Hindi/Urdu dubbed content while local channels are only allowed 10% foreign content

– This will ultimately force local entertainment channels to shut down and start operations from UAE as International Channels

– This will also be disastrous for the local Entertainment Production Industry which employs thousands of people and provides culturally relevant entertainment

• PEMRA rules should be amended as follows:– Whether a Channel is Local or International, it will only be allowed 10%

Foreign Content in Urdu/Hindi– International Channels can air 100% foreign content as long as it is in any

language other than Urdu/Hindi

Cable Penetration in Top 09 Cities

80%

90%

80%

80%

80%

80%

90%

75%

75%

60%

20%

10%

20%

20%

20%

20%

10%

25%

25%

40%

0% 20% 40% 60% 80% 100%

Total

Karachi

Lahore

Isb/ Rwp

Faisalab…

Sukhur

Hyderab…

Gujranw…

Multan

Peshawar

C&S/ Non C&S Break Up

C&S Home Non C&S Home

• Cable Penetration has grown rapidly in last five years and is now the prevalent mode of TV reception in Urban Pakistan

0%

10%

20%

30%

40%

50%

60%

70%

Cable Penetration – Total Pak

SEC BREAK UP

C&S Previous New Kar Lhr Rwp/Isl Fbd Gujw Hbd Suk Mul Psh

Cable 71% 80% 90% 80% 80% 80% 75% 90% 80% 75% 60%

Antenna 29% 20% 10% 20% 20% 20% 25% 10% 20% 25% 40%

Urban TV Penetration much higher than Rural (80% Cable Penetration in Urban

compared to 40% in Rural)

Pakistan TV Market Basics

19

Million % of Population

Total TV Viewership 94 54%

Metros Viewership 20.7 90%

Large Cities Viewership (>500,000 population) 9.6 80%

Small Cities Viewership(<500,000 population) 19.1 70%

Total Urban 49.4 80%

Total Rural 47.3 40%

Electrification Adjusted Electrif. TV Viewer.%

Total Urban 100% 80%

Total Rural 81% 50%

Out of these 40 Million are Cable Viewers

Out of these only 19 Million are Cable Viewers

USAGE IN MINUTES -

TA: 15 – 55 C&STime : 24hrs

- A significant change in minutes consumption is visible due to load shedding and World Cup 2011

World Cup 2011

0.0

50.0

100.0

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200.0

250.0

Janu

ary

Feb

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March

Ap

ril

May

Jun

e

July

Au

gust

Septem

ber

Octo

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No

vem

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Decem

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2009

2010

2011

2012

Impact of Load shedding

VIEWERSHIP TREND ACROSS THE DAY

- Peak hours are gradually moving from prime time to late prime time. - Specialised programming like Morning Shows enhancing timeslot viewership- Daytime viewership more than half of Peak Viewership

0.0

2.5

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25.0

27.5

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Viewership Across Time BandsJan – Dec 2012

Total Ind. 15-55 C&S

VIEWERSHIP TREND ACROSS THE DAY

- Prime Time remained highest viewed slot on both audiences- Daytime viewership more than half of Peak Viewership

0.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5

20.0

22.5

25.0

27.5

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Viewership Across Time BandsJan – 29 May 2012

Total Ind. 15-55 C&S

AVERAGE MINUTES CONSUMPTION

Age Bracket Time Hrs.

05 - 14 2.53

15 - 29 2.64

30 - 45 2.66

46+ 2.66

Region Time Hrs.

Lahore 2.87

Karachi 2.87

Rwp/Isb 3.27

Non Metros 2.64

Gender Time Hrs.

Male 2.7

Female 3.0

- Female viewership higher than males (more time spent in home)- Highest viewership in RWP/ISL amongst Urban Pak cities- Older Audiences spend more time on TV

A survey in 2012

Damaging Effects

• Divorce rate now increasing why? (SOAPS)

• Immorality and acceptability increases.

• Media has more effects then we can think off.

SEC SHARE ACROSS GENRE

JAN – DEC 2012

- Lower SECs consuming Foreign (Indian) and Cable Channels while upper SECs watching Local Ent and News.

- News Viewership increases dramatically in upper SECs.

13%

17%

18%

20%

19%

25%

17%

19%

20%

20%

10%

13%

17%

18%

22%

4%

4%

4%

3%

4%

25%

21%

14%

14%

13%

2%

1%

2%

2%

2%

5%

6%

4%

4%

4%

5%

5%

5%

3%

5%

11%

14%

13%

13%

12%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SEC A

SEC B

SEC C

SEC D

SEC E

Inhouse local Ent Foreign Ent Movies News Music Cooking Sports Children Regional Others

SEC SHARE ACROSS TIME BANDJAN - DEC 2012

- Time Slot wise viewership is comparatively consistent across all SECs

6%

7%

6%

7%

6%

5%

5%

6%

5%

6%

12%

11%

13%

12%

12%

14%

14%

14%

14%

14%

15%

15%

15%

15%

15%

24%

23%

23%

23%

23%

24%

23%

23%

23%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SEC A

SEC B

SEC C

SEC D

SEC E

00:00 03:00 06:00 09:00 12:00 15:00 18:00 21:00

TOP 15 FOREIGN AND LOCAL CHANNELSIN TERMS OF RATING & REACH ( Jan – Dec 2011)

• Audience loyalty with Star Plus is still higher than local entertainment channels • News Channels delivering higher Reach

1.16

0.560.47 0.44

0.36 0.350.27 0.26 0.26 0.26 0.24 0.23 0.20

0.16 0.130.0

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Top 15 Foreign and Local Channels (in terms of Avg. Rating & Reach)

R % NR %

TA: 15 – 55 C&S

TOP 15 LOCAL CHANNELS IN TERMS OF RATING & REACH ( Jan – Dec 2011)

0.56

0.44

0.35

0.27 0.26 0.26 0.260.24 0.23

0.20

0.13 0.12 0.110.09 0.09

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Top 15 Local Channels (in terms of Avg Rating & Reach)

R % NR %

TA: 15 – 55 C&S

• In Karachi Media faces a problem of objective

reporting, Political Parties don’t want any news

against their interests. MQM vs ANP

• In Punjab (Bribe the Journalist- Plots etc)

• In FATA No access to information.

• In KPK, journalists can’t speak against Taliban nor

Security Agencies.

• In Baluchistan, Nationalists react if media reports

pro-govt.

• If an investor invests in media. He wants to

protect his primary interests.

• Cultural invasion, Inexpensive Foreign content , Indian dramas & movies (Ishq-e-Mamnoya, Mera Sultan)

• Religion Cant be addressed due to fear (Salman Taseer,Shahbaz Bhatti, The Blasphemy law or the fear of being labeled a Qadiani)

• No Focus On Real Threats Kalabagh Dam, infiltration of NGO’s, Bad Merchandise (sponsors- fair & lovely), Economy or related issues.

• Coverage of Jamia Hafsa and footage of in discriminatory firing on Madrasa. Negative impact

• Severe Shortage of Trained & skilled Man power. Opinion of the experts Gen (r) Talat Masood.

Media and Conspiracies theories

• Over the last few years, we have seen a proliferation of conspiracy theories and unattributed quotes presented as established facts. Media itself coined conspiracies theories at time incorrect image of Pakistan. E.g.; Raymond Davis case, Lal Masjid, Suicide attacks, Attacks on our Armed forces, War on terror, Spot fixing case etc.

Saving Faces vs. Spoiling Faces

Pakistan Media Playing RAW’s TUNE

Panic Situation

• When President was ill and media displayed immature reporting and even raised questions about his mental conditions…

• Musharraf is Leaving the Country in The Morning.

Effects On Business

• About $50 (Billion) has Gone outside the country. (WTO report)

Year I investment

2008 15(Billion)

2009 15(Billion)

2010 10(Billion)

2011 10(Billion)

Investment Out From Country

2008

2009

2010

2011

9 year girl raped in lhr

Creating False Perceptions by Default

• Defense Budget ( Active Border)

• Facilities like DHA, CSD, CMH, Etc

• Role of Armed Forces vs. Threats Like 2 May Incident, Floods.

• Is our enemy only USA.

• Blasphemy Laws.

• Ability to Kill Heroes.

• Our Savior Industry- (Foreign Investment, Agriculture).

Human Resource and Job Security

• Lack of Training

• Lack of Facilities

• Poor service structure

• Wrong allocation of Finances

• Editorial depth missing both in T.V/ Print

• Leading to corruption- Incompetence

Credibility

• General Zia-ul-Haq’s Plane Crash.

• Effect on International community & World

• Comparison with reputed international companies.

Do We Understand The Media?

• President & Prime Minister ( Spokes person).

• Ministry of Information & Broadcasting.

• PID & DGPR.

• ISPR.

• Ministers ( Media Advisors)

• Foreign offices.

• Supreme Court & High Courts.

• Dramas & Films.

Religious Channels

• The role of religious channels in Pakistan is very limited.

• Live calls shows for career, money, and marriage

• Intra-Faith harmony

• Education on key issues e.g. Hadood Ordinance

• Promoting non-religious issues like "Online Istikhara”

• Non binding , creating polarization

• Religious channels of Christians & Hindus.

Suggestions

• Code of Ethics

• Accountability

• Checks & Balances

• Protecting State Interests.

Social Media Emerging

• Social Media brought revolution in Tunis, Egypt & Libya, It is emerging as a fast tool for interaction individuals, businesses and for politics as well…too important to be ignored;

• Twitter• Radiant6• Linkedin• Klout• Dangers of w.w.w• Face Book

The Future

• Needs to be developed - infra-structure.

• Distance Religion & Governance.

• 27 Provinces.

• Identifying and reporting

• Show national interest ( Like Water , Resources) etc.

• Make PEMRA Autonomous and Independent

• Define a Code of Conduct for Media in consultation with APNS and PBA

• Bring complete transparency in Government Advertising

• Protect Local Entertainment Industry by closing current loopholes in PEMRA rules

• Clamp down on Illegal Content and Piracy

• Implement Public Service Programming in Consultation with PBA

• Thank You