Cable TV

Idiot and the Box! – Probir Roy

Published

23 years ago

February 7, 2003

The road to a digital future ought to be paved with good intentions! Or so the powers that be would have liked to have it! But CAS at best is a regressive intermediate step – a step that should have ideally led India to a Brave New Digital World.

Digital Direct Broadcast Services (DDBS) is the end game for a Broadcaster. Satellite or terrestrial-based delivery of digital streams with addressability is dream state for media business moguls – the proverbial pay-as-you-go paradigm, versus the hitherto free rider phenomenon that we have got blissfully used to!

Primarily with CAS, one is taking away a service which has been free and unregulated for most of ten years, and then replacing it with the burden of a price and cost structure not quite of one’s choice or making! Unlike in the US where the raison d’etre for Conditional Access (CA) based Pay TV (HBO; 1975) was its offer of premium and special fare, over and above the regulated basic tier of services!

However, with rollouts and adoption of delivery of entertainment and information services over wireline and ether viz DTT, DAB, xDSL, LMDS, Cable Modem etc, the acceptance of a digital Set Top Box (STB) as standard household appliance is fairly obvious in the next couple of years.

At the same time, the customer can’t pay for and install a server rack of various STBs, Receivers and Customer Premise Equipment (CPEs) to cater for various technologies, operators and content providers when they roll out their services! Therefore a ‘STB’ would need to perforce follow some semblance of open standards, common interface, and interoperability across providers, and upward compatibility for two-way interactive broadcast and broadband service – what can be defined as a Universal & Integrated CA’ (UiCA). One is yet to see such a ‘standards and protocol’ initiative by Consumer Groups, Industry or Government to address, no doubt, technical issues of ‘inclusiveness of delivery’ and ‘gateway’.

Instead, analogue STB is being pushed for basic CAS compliance with the option for a digital regime. For quite the same value and enhanced functionalities (Ref: Earlier centerpiece article in Business Standard; 10 June 2002) a digital and integrated STB for direct satellite services could have led to significant benefits to over 40 million C & S, Internet, PC and Broadband homes.

The new I & B and Telecom Ministers may well find it worthwhile to at least initiate some dialogue and debate on this.

LOSERS AND SHAKERS!

The flip side being that an entire value chain of distribution as currently understood would be turned on its head. The MSO and mid and local tier partners would in essence be eliminated from the distribution chain in one fell swoop, not to mention cables criss-crossing trees, rooftops and streets! This disintermediation would dramatically change the economics and cost structure of the broadcasting industry in general, and C & S segment in particular.

Certainly CAS will be a boon (read boom!) for many players – members of CETMA for starters, and there will be short and long-term economies and diseconomies for others.

Purely from a Media angle, the understanding of CPM and CPRP may drastically change as channels move from free and un-accounted, to pay and addressed. The must-carry channels will show no change, but the scramble for the ‘paid’ channel will drive audience reach, share and rate cards. While the name of the game may move from advertising- sponsored business model and underutilized inventory to subscription-based models, broadcasters will be hard put to maintain high rates both for advertising and subscription rates. Advertisers hopefully will be smart enough to realize that its 30-second ad is not going to be seen across all the homes that they currently plan for!

There will be fragmentation of audiences and emergence of segmentation ‘spin’ in the hope that a lower reach will perhaps imply precision marketing, and therefore translate into premium rates! On the whole, Media planners will need to recreate new value propostion in a falling mass (and hitherto unregulated) ‘one size fits all’ viewership market in the transition period – from now to June 2003. The main Broadcasters not to be left out will go hell-for-leather to promote their own channel segmentation strategy, and ready their bouquets (and pricing!) to remain ‘Prime’, and literally get into the 6.7 million C&S urban viewers face!

Ultimately, no one wants to be the ‘idiot’ who is left out of the ‘box’!

To my mind, the huge bonanza will be for the free-to-air or must carry-channels. They could recapture lost ground as they can technically show 38 million C&S homes, or 75 million TV homes as the case may be. Whilst Doordarshan may have lost out to the private players in the ad sales pie in spite of competitive TRPs tilting in their favour. If they can get their act together, this share is expected to increase.

NEXT STEP

Convergence is a nice enough concept in White Papers and to occupy several Government Committees and Task Forces, but difficult in practice. Especially with the various elements of ‘convergence’ in a constant state of flux on account of technological innovations and fickle consumer tastes, needs & aspirations which move faster than Moore’s Law! One just had to be present at the recent Consumer Electronics Show (CES) at Las Vegas to realize that!

Convergence at best is practised at the ground level in initiatives such as ensuring single point access for multiple delivery systems, last mile operators’ migration & financing plan, etc.

In the meanwhile, the onus will need to be on Advertisers and Consumer Groups to remain alert in the transition period. As research databases reconcile with a priori hypotheses and media planners, analysts and broadcasters recalibrate their ‘go-to-market’ strategies in a CAS-enabled world.

Probir Roy has worked in Govt, MNC Broadcast and Advertising Cos at senior operating positions. He is currently Chief Strategy officer & Managing Partner at Waygate Capital specializing in TMT sector clients & investments.

Related Topics:broadcaster C&A CAS DAB DDBS DTT HBO pay TV satellite Terrestrial

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Den Networks Q3 profit steady despite revenue pressure

Published

2 months ago

January 19, 2026

indiantelevision.com Team

MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.

Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.

Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.

The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.

In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.

Cable TV

Plugging along as Hathway tunes in steady profits this quarter

Published

2 months ago

January 17, 2026

indiantelevision.com Team

MUMBAI: In a quarter where staying connected mattered more than moving fast, Hathway Cable and Datacom kept its signal steady. The cable and broadband major reported a net profit of Rs 21.7 crore for the December 2025 quarter, marking a clear improvement from Rs 13.6 crore a year earlier, even as pressures persisted in parts of its operating portfolio.

For the quarter ended December 31, 2025, revenue from operations stood largely flat at Rs 536.6 crore, compared with Rs 511.2 crore in the same period last year. Including other income of Rs 21.1 crore, total income rose to Rs 557.7 crore, reflecting incremental gains despite a competitive media and connectivity landscape.

Profitability improved on the back of disciplined cost control and higher contribution from associates. Profit before tax increased to Rs 28.2 crore, up from Rs 19.1 crore in Q3 FY25, aided by Rs 3.9 crore in share of profit from associates and joint ventures. After tax, earnings for the quarter climbed nearly 60 per cent year-on-year.

Over the nine months ended December 31, 2025, Hathway reported a net profit of Rs 71 crore, compared with Rs 57.7 crore in the corresponding period last year. Total income for the nine months came in at Rs 1,677.3 crore, up from Rs 1,599.8 crore, while profit before tax rose to Rs 94.7 crore from Rs 84.2 crore.

A closer look at the segments shows a familiar split story. The cable television business remained under pressure, reporting a segment loss of Rs 11.4 crore for the quarter, though this narrowed sharply from the Rs 16.6 crore loss seen a year ago. In contrast, the broadband business returned to the black, delivering a modest but positive contribution of Rs 4.2 crore, helped by associate income. Dealing in securities continued to be a bright spot, generating Rs 14.7 crore in quarterly profits.

Costs stayed broadly contained. Pay channel costs, the single largest expense, rose to Rs 287.4 crore, while depreciation and amortisation stood at Rs 74 crore. Finance costs remained negligible at Rs 0.2 crore, keeping leverage risks in check.

Hathway’s earnings per share for the quarter improved to Rs 0.12, up from Rs 0.08 a year ago. The company maintained a strong balance sheet, with total assets of Rs 5,302.4 crore and total liabilities of Rs 848.9 crore as of December 31, 2025.

While structural challenges persist in the traditional cable business, the numbers suggest Hathway is slowly recalibrating its mix trimming losses where needed, leaning on associate income, and keeping the broadband engine ticking. For now, the company may not be racing ahead, but it is clearly staying tuned in to profitability.

Cable TV

Signal drop Tejas Networks’ numbers stay patchy in a volatile quarter

Published

2 months ago

January 10, 2026

indiantelevision.com Team

MUMBAI: In telecom, even the strongest signals face interference and Tejas Networks Limited’s latest numbers show just how noisy the airwaves remain. The Tata Group-backed networking firm reported unaudited standalone revenue of Rs 305.72 crore for the quarter ended December 31, 2025, up sequentially from Rs 261.37 crore in the September quarter, but sharply lower compared with the Rs 2,642.05 crore clocked in the year-ago period. The topline recovery, however, was overshadowed by a pre-tax loss of Rs 303.20 crore, widening from a Rs 473.03 crore loss in the previous quarter, and reversing a Rs 211.06 crore profit reported in the December 2024 quarter.

After tax, the company posted a loss of Rs 196.89 crore for Q3 FY26, compared with a loss of Rs 307.17 crore in Q2 FY26 and a profit of Rs 165.42 crore a year earlier. For the nine months ended December 31, 2025, Tejas Networks reported revenue of Rs 769.02 crore and a loss after tax of Rs 697.97 crore, a sharp swing from a Rs 512.67 crore profit in the corresponding nine-month period last year. The numbers reflect a year marked by execution challenges rather than demand collapse.

Costs remained the dominant spoiler. Total expenses for the December quarter stood at Rs 616.50 crore, driven by elevated material costs, employee expenses and provisioning. The company also flagged several one-offs and adjustments: a Rs 9.85 crore provision linked to the implementation of new labour codes, ₹24.35 crore in warranty provisions, and reversals related to inventory obsolescence. Earlier quarters had already absorbed heavy charges tied to contract manufacturing losses, design changes and write-downs, the hangover from which continues to weigh on profitability.

Tejas reiterated that it operates as a single reportable segment focused on telecom and data networking products and services, offering little insulation from sector-wide volatility. While revenue momentum has stabilised sequentially, the contrast with the previous financial year remains stark. For context, the company closed FY25 with audited standalone revenue of Rs 8,915.73 crore and a profit after tax of Rs 450.66 crore, underscoring how sharply the operating environment has shifted in FY26.

The results were reviewed by the audit committee and approved by the board on January 9, 2026, but they leave investors with a familiar question: when does recovery turn structural rather than episodic? For now, Tejas Networks appears to be in reset mode, balancing execution clean-up with cost discipline. In a sector where margins can be as fragile as fibre strands, the next few quarters will matter as much as the signals the company sends to the market.