"In-tell"ing the "idiot box!

I have just been disappointed with my channel surfing experience. This isn’t the first time and surely won’t be the last. Indian television is at its lowest ebb. Not surprisingly, the advertising rates are among the lowest in the world.

Making the idiot box smarter - adding intelligence!
I believe television today is simply too dumb! Most of the soaps tend to take generation leaps making some characters as old as 800years and counting. I guess it is time to use television as tool for information dissemination. Look at the videos of John Bird and John Fortune, about sub-prime crises and credit crunch. They use humour to make people aware about some aspects of happenings in the financial world that are, in all probability, soon going to make life miserable for common man.

Yet all we have managed is to put humour to some crappy idiotic use in prime-time news.

Possibly only Vir Das (below) and Cyrus Brocha have managed to entertain intelligently using humour on news channels.

Intelligence is waning - Channels please wakeup!

I guess this is but just one example. But I guess it should suffice as there is not much opinion against my views. It is time channels and advertisers realised that programming catering to intelligent audience tends to be sticky. The intelligent viewer is intelligent enough to come back to the program and builds a solid "discussion universe" around the program attracting more "intelligent-aspirers" to the fold.

In Sum

Its time to rethink about the customer, about our assumptions of their intelligence and relook at what we are offering to the world. In the long run, well made intelligent programs will create their following and will bring viewers back to the channel. I am sure by making programming relevant to the people the channels can create a sticky customer. Let us hope the channels have some "intel" inside their organisations! Now isn't it what advertisers want to pay quality bucks for?

Real Estate: Where are we "real"ly?

Urbanisation of India has baffled me. Indian cities are a picture of most shoddy infrastructure and yet command more price than any other city in the world. Unlike Singapore, India has large land mass and there is no dearth of land supply. Also unlike other high cost cities, India’s per capita income does substantiate the prices in India. Therefore, what is happening and where will this lead?

Why prices are increasing?

The prominent reasons for increasing prices are said to be:

• Income and demographics
• NRI purchases
• Constrained urban infrastructure and hence higher pricing for currently available infrastructure
• Constrained low cost land supply
• Higher migration into established urban centers

Income and Demographics point to a different reality
This is the most abused story of all. If only people started looking at incomes and demographics, they will realize how outrageously prices have moved. The current incomes and spending patterns cannot support these residential prices or create enough spending to justify retail real estate prices.

NRI investments may not have an exit!
At current levels, housing is only affordable to NRIs with higher per capita income in relation to local population. However, if these purchases are investments then there has to be an exit route at higher prices for encashing the gains. Ultimate sustainable exit must be through selling to the local population. Crude calculations show the un-sustainability of this logic. In essence, the NRI investment theory may not find and exit route!

Constrained supply of low cost land is a cock and bull story!
Developers looking to acquire lands in or near the traditional CBDs are driving up the cost land. This is totally artificially created bottleneck and can be resolved using regulatory measures as seen in China.

Infrastructure constraints are government created
Lack of urban infrastructure is completely artificial, created by successive governments’ lack of vision. It has been years since government opened any new public schools, municipal offices, and water and sewage treatment facilities. The accumulated impact of this has reached a critical threshold where it has started affecting the cost of living and doing business in the city.

Higher migration into established urban centers is a key concern
Of all the reasons this represents the most critical and believable reasons. The job creation outside of the current urban centers is abysmally low. This is leading to in-bound migration across income classes.
At higher income level, it is raising prices in high-end localities. Therefore, we have the posh areas appreciating higher and faster than rationally acceptable rate. This phenomenon also brings in lower transactions leading to lower supply assimilation.
At the lower income side, slum population is increasing. Government is letting the migrant population encroach upon and absorb government and private land leading to artificially reducing the cost of living and doing business for current urban centers. This is a negative spiral as it reduced the incentives for economic activity to move out of the city. Thus, new investments in upcoming urban centers do not yield returns whereas old urban centers continue to become more congested. Consequently, emerging cities are missing the potential growth.

In sum
Governments lack of concern for living conditions, lack of foreseeing infrastructure requirements and lack of respect of property and assets is leading us down a dangerous spiral. Globalization has created ample infrastructure to let global cities compete against each other at a level playing field. Cities in Philippines, Malaysia and other south-east Asian countries are taking a lead and Indian cities will soon be left behind cursing the lost opportunity.