ITV

Category: Multi System Operators

  • TRAI steps in after 24% homes lose complete access to all pay channels

    TRAI steps in after 24% homes lose complete access to all pay channels

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) on Tuesday extended the deadline for consumers to select television channels under its new tariff regime till 31 March  The subscribers that don’t opt for new channels would be moved to ‘Best Fit Plans’, which would be developed as per usage pattern, language and channel popularity, the sector regulator said in its statement.

    The regulator said the decision had been taken to protect the interests of consumers. TRAI stated that some subscribers are facing difficulties in selecting the channels/ bouquet of their choice. In some cases, LCOs have not been able to reach out to the subscriber to create awareness among them and collect the options, it noted.

    Right through the last couple of months, the regulator had time and again directed broadcasters and DPOs to ensure a seamless transition with no blackouts of TV screens.
    Despite the best efforts of all stakeholders, switch offs were reported across several cities of the country during the transition, a situation RS Sharma and team wanted to avoid.
    Therefore the TRAI’s latest move aimed at a consumer-friendly migration seems to be a positive one if ground-level implementation data is looked into.

    According to numbers provided by Chrome DM, 24 per cent households had lost complete access to all pay channels in 10.9 million cable and satellite homes in 366 urban cities (340 Chrome DM reported channels).

    As per Chrome DM week 6 data, 76 per cent of households in these cities felt no impact of the new norms, as they continued to have access to 300 odd channels as per their old packs. 13 per cent of households among rest 185.1 million cable and satellite homes across the country have exercised their right in some form to pick new packs.

    Bhima Riddhi Digital Service promoter Nagesh Chhabria said his team had to convert consumers from pay channel base to FTA base in some areas. Chhabria said the Belgaum-based operator had initially handed ten days to its subscribers to select new channels or packages. However, those that did not exercise their choice were converted to the FTA base. However, he added that consumers were informed prior to the switch off. Overall 30-35 per cent of his company’s consumer base has been converted to FTA.

    Maharashtra Cable Operators Foundation (MCOF) member Asif Sayed said the switch-off phenomenon was being witnessed in parts of Mumbai as well. According to him, all the MSOs other than Den Networks “have forcefully converted the pay packages into FTA”.

    Sayed went on to add that some consumers, despite having packages with six months validity, have been moved to the FTA base.

    “Any form of TV buying on the back of the existing ratings’ sampling does not hold, as the 196 million C&S homes in India will choose different channel packages – running into thousands of combinations. There are multiple combos being rolled out by the broadcasters, DPOs and variants of the same – earlier were an average of 5 packages earlier, which has moved to over 5000 combinations post the NTO implementation,” Chrome DM founder Pankaj Krishna highlighted.

    Chrome DM week 5 data revealed that a staggering 90 per cent of consumers were aware of the change in tariff through the TV ads of broadcaster, and not through their cable service providers.

    The data also showed that 70 per cent of people who have been contacted were yet to take decisions on which package or channels to subscribe to. Out of the balance 30 per cent in the regional markets, the inclination of choice is more towards regional packages and channels.

    According to Chhabria it is premature to talk about the package uptake. He pointed out that broadcasters are marketing national bouquets a lot more than regional one. The veteran executive feels that regional channels are being promoted by DPOs.

    According to Chrome DM, a major chunk of the off take of packages will be taken over by the distributor-defined packages, while broadcaster defined-packages will always remain a second choice. Chhabria seconded that theory, adding that around 60 per cent of consumers are picking bouquets designed by DPOs only. Sayed, from his on-ground experience, claimed that only DPO suggested packages are working. He also added that MSOs are taking a lot of time to activate pay channels on a-la-carte basis.

    According to several industry watchers Indiantelevision.com spoke to, major MSOs including Arasu Cable, Den Networks, GTPL Hathway, Hathway Cable and Datacom among others had switched off pay channels in various parts of the country. Multiple cities in Delhi and Uttar Pradesh reported a complete pay channel bouquet switch off, expect channels from IndiaCast and Sony. A small section of DPOs had also switched off all pay channels, barring some regional packages. Sayed added that the chaotic situation is increasing the churn rate of the cable business, thereby helping DTH operators.

    As per TRAI, there are close to 100 million cable service TV homes and 67 million DTH TV homes in the country. The regulator believes that approximately 65 per cent of the subscribers of the cable services and 35 per cent subscribers of the DTH services have already exercised the options.

  • IMCL highly optimistic about impact of tariff order on business

    IMCL highly optimistic about impact of tariff order on business

    MUMBAI: Indusind Media & Communications Ltd (IMCL), the Hinduja Ventures Ltd (HVL) subsidiary, is highly optimistic about the impact of the new tariff order on its business. The MSO asserts that the new regime ensures a more equitable distribution of economic benefits in the value chain. After overcoming major legal battles the new tariff order by Telecom Regulatory Authority of India (TRAI) has finally come to effect from 1 February.

    While earlier the deals between broadcasters and distribution platform operators (DPOs) were not transparent and consumers did not have the option to select channels as per their choice, with the new regime the industry is moving towards an MRP based model. IMCL in its third quarter earnings release said that through proper packaging and pricing and giving the consumers the channels of their choice, the company will now be able to move very fast on the path to profitability. The MSO also added that the change will also enable the company to have a better return on capital employed.

    HVL reported a total income of Rs.10.16 crore for the third quarter on 7 February while the media and communication segment contributed 10 crore. HVL operates across three segments including media and communication, real estate and investment, and treasury and IMCL comes under the first category.

    "IMCL being a progressive player in the MSO industry has looked at the developments in the industry both with respect to the new tariff order and the consolidation very positively and is today in the forefront of providing excellent consumer service through seamless implementation of the new tariff order while ensuring excellent viewership through world class technology. This along with efficient packaging and pricing adopted by it will result in the company move on the path to profitability," IMCL CEO Vynsley Fernandes said.

    Last year another major development took place in the distribution industry with the entry of Jio FTTH. To reach last mile consumers easily, JIO announced majority stake in two large MSOs, Hathway Cable and Datacom and Den Networks.

    “IMCL believes that such consolidation is good for the industry as it creates an environment for technology driven organisations who will now focus on better consumer experience leading to better pricing rather than pure volume growth in a frittered industry,” the release read.

  • Siti Networks in Kolkata to migrate pay channels to new TRAI tariff scheme in phased manner

    Siti Networks in Kolkata to migrate pay channels to new TRAI tariff scheme in phased manner

    MUMBAI: Essel group promoted multi-system operator (MSO) Siti Network has planned to migrate Pay TV channels in Kolkata in a phased manner to get non-compliant subscribers to transition to the new TRAI tariff regime. While around 80 per cent of the MSO's 14 lakh subscribers were still to pick their pay channels from an a-la-carte list.

    According to a report from The Telegraph, the MSO will start the process before the grace period given by Calcutta High Court in a recent order.

    “About 20 per cent of our customers have filled in forms online or offline, specifying the channels they want to watch. We have shifted most of them to the channels of their choice. We will now start shifting the others who have not exercised their choices to the new system by withdrawing their pay channels. They will continue to get the free-to-air channels,” Siti Cable director Suresh Sethia said.

    If there is chaos after the migration, the company might start moving some of the subscribers to combinations closest to their current packs. According to the report, another MSO is expected to move subscribers to a combination of channels that can be accommodated within the pricing brackets they are currently in.

    “Since most pay channels are now priced higher than they were in the previous system, they will obviously miss out on some, if not several. The only way out is for them to register their choices immediately,” an official was quoted by The Telegraph.

    Earlier Telecom Regulatory Authority of India (TRAI) extended the deadline for consumer migration to new plans till January 31. Despite the additional month, several MSOs complained that the majority of subscribers had not responded to the grace period making transition very difficult.

    80 cable operators from the city also filed a petition against the order in Calcutta High Court and initially got a stay too. But the high court vacated the stay.

  • Hathway back in black in Q3 2019

    Hathway back in black in Q3 2019

    BENGALURU: Broadband internet services provider Hathway Cable & Datacom Limited reported a standalone profit after tax and standalone net comprehensive income of Rs 6.44 crore and Rs 6.27 crore respectively for the quarter ended 31 December 2018 (Q3-2019, quarter or period under review). The company had reported a loss of Rs 5.90 crore in the previous quarter (Q2-2019) due to higher other expenses and foreign exchange loss. In Q3-2019, Hathway has reported a foreign exchange gain of Rs 3.07 crore as compared to a forex gain of Rs 4.32 crore in Q3 2018 and a forex loss of Rs 7.21 crore in Q2 2019.

    Hathway’s standalone operational revenue for the period under review declined 2.7 per cent y-o-y to Rs 134.85 crore from Rs 138.65 crore, but was 3.3 per cent higher q-o-q than the Rs 130.55 crore in Q2-2019. Standalone total income in Q3-2019 was slightly lower y-o-y (lower by 0.8 per cent) at Rs 143.41 crore as compared to Rs 144.57 crore in Q3 2018. Though the company’s standalone operating profit EBITDA) for Q3 2019 declined 14.6 per cent y-o-y  to Rs 51.30 crore (38 per cent of operating revenue) from Rs 60.06 crore (43.3 per cent of operating revenue), it increased 10.1 per cent q-o-q from Rs 46.58 crore (35.7 per cent of operating revenue).

    Let us look at the other numbers reported by Hathway

    Standalone total expenditure in Q3 2019 was Rs 139.67 crore or 101.6 per cent of operational revenue as compared to Rs 120.70 crore or 87.1 per cent of operational revenue in Q3 2018 and Rs 144.08 crore or 110.4 per cent of total income in Q2 2019. Standalone operating expenses in Q3 2019 was 0.6 per cent higher y-o-y at Rs 33.27 crore as compared to Rs 33.06 crore and was 7 per cent higher q-o-q than Rs 31.10 crore. 

    Standalone employee benefits expense for the quarter was 19.6 per cent higher y-o-y at Rs 13.55 crore as compared to Rs 11.33 crore and was 20.0 per cent higher q-0-q than Rs 11.29 crore. Standalone finance costs in Q3 2019 at Rs 20.57 crore were 17.3 per cent higher y-o-y than Rs 17.54 crore but were 36.2 per cent lower q-o-q than Rs 32.22 crore. Other expenses at in Q3 2019 at Rs 36.73 crore were 7.4 per cent higher y-o-y than Rs 34.20 crore, but were 11.7 per cent lower q-o-q than the Rs 41.48 crores.

    Takeover by Jio

    Two days ago, Hathway had informed the Stock Exchange – “Further to our intimations dated 17 October 2018 and 14 November 2018 with respect to boards' and shareholders' approval for raising of funds up to Rs 2940,00,03,500 (Rupees two thousand nine hundred and forty crores three thousand and five hundred only) through preferential allotment to Jio Content Distribution Holdings Pvt Ltd, Jio Internet Distribution Holdings Pvt Ltd and Jio Cable and Broadband Holdings Pvt Ltd (the "Proposed Investors"), please be informed that the proposed investors have received the approval from the Competition Commission of India on January 21 2019.”

    Hathway had also submitted a copy of the Letter of Offer dated 21 January 2019 to the Stock exchanges.

  • RIL subsidiary gets Competition Commission nod for Den, Hathway acquisition

    RIL subsidiary gets Competition Commission nod for Den, Hathway acquisition

    BENGALURU: The Mukesh Dhirubhai Ambani led Reliance Industries Limited has informed the bourses that permission from the Competition Commission of India for acquisition of shares and control of Den Networks and Hathway Cable & Datacom  (Hathway) by six SPV 100 percent owned and controlled by Digital Media Distribution Trust of which Reliance Content Distribution Limited, a wholly owned subsidiary of Reliance Industries Limited, is the sole beneficiary, has been received on 21 January 2019.

    The approval will enable subscription to the preferential issue of equity shares by Den and Hathway and purchase of equity shares of Den from the existing promoters, as specified in the disclosure dated October 18, 2018.

    RIL is now waiting for Securities and Exchange Board of India (SEBI) comments on the draft letter for mandatory open offer to shareholders of (a) Den; (b) GTPL Hathway Limited; and (c) Hathway Bhawani Cabletel and Datacom Limited,

    Yesterday, Den Networks had informed the Stock Exchanges that (i) Jio Futuristic Digital Holdings Private Limited, (ii) Jio Digital Distribution Holdings Private Limited and (iii) Jio Television Distribution Holdings Private Limited (collectively referred as “investors“) have received the above referred approval.

    Also, yesterday, Hathway had informed the Stock Exchanges – “Further to our intimations dated 17th October, 2018 and 14th November, 2018 with respect to Boards' and Shareholders' approval for raising of funds up to Rs. 2940,00,03,500 (Rupees Two Thousand Nine Hundred and Forty Crores Three Thousand and Five Hundred only) through preferential allotment to Jio Content Distribution Holdings Private Limited, Jio Internet Distribution Holdings Private Limited and Jio Cable and Broadband Holdings Private Limited (the "Proposed Investors"), please be informed that the Proposed Investors have received the approval from the Competition Commission of India on January 21, 2019.”

    Hathway had also submitted a copy of the Letter of Offer dated 21 January 2019 to Stock exchanges.

  • SITI Networks launches My SITI mobile app

    SITI Networks launches My SITI mobile app

    MUMBAI: SITI Networks Limited, an Essel Group company, has launched My SITI mobile app for its customers. The My SITI app gives a convenient way to SITI’s 55 Mn consumers to access and operate their SITI Digital cable TV connection.

    In line with the regulations of the New Tariff Order, and TRAI’s migration plan, the app will give options to customers to indicate their choice of channels / bouquets during the transition period. My SITI App can be downloaded from Google Play Store (https://goo.gl/75pF66) to all Android based mobile devices. SITI has launched a multi-platform campaign to educate its customers on the app and the true power of choice. SITI has also activated the app for their 24000+ business associate network to help them take customer choice in compliance with TRAI’s migration plan. SITI has also activated the feature on its website and is aggressively reaching out to customers and partners through a multi-dimensional campaign.

    My SITI app would also enable customers to select channels / bouquets / packages, make payment, and share feedback through a very simple and intuitive interface on their mobile phones. This is in line with SITIs philosophy of institutionalizing systems and process to drive business operations and compliances.

     “We have always worked towards giving the power of choice in the hands of our customers and enable transparency. My SITI app for customers is a testament to our resolve and a step that will empower our customers by providing real-time access to their accounts, payments and transaction history. We are also enabling customer choice for the successful implementation of the New Tariff Order and QoS regime,” SITI Networks chief business transformation officer Rajesh Sethi said.

  • Q2 results: Hinduja Ventures reports total income of Rs 26.72 crores

    Q2 results: Hinduja Ventures reports total income of Rs 26.72 crores

    MUMBAI: HVL on standalone basis reported a total income of Rs. 26.72 Crores for the half year ended September 30, 2018.

    Pursuant to adoption of INDAS, the mark to market gains in respect of equity shares held by the Company in IndusInd Bank Limited were reflected in the Balance Sheet as on March 31, 2018.The price at which the mark to market adjustment was carried out in the Balance Sheet on March 31, 2018 was Rs. 1796.75 per share. The corresponding market price as on September 30, 2018 was Rs. 1690.05 per share. This reduction in value in respect of shares held as “Stock in trade” is reflected in the Profit & Loss Account for the current period and in respect of shares held as “Investments” is reflected in “Other Comprehensive Income” in the reserves of the Balance Sheet for the current period.

    The Supreme Court by its Order dated 30th October 2018, has dismissed the appeals made to it against the decision of the Madras High Court upholding the Digital Tariff Order issued by the Telecom Regulatory Authority of India (TRAI). 

    This decision of the Supreme Court is a major positive development for IndusInd Media & Communications Limited (“IMCL”) as it ensures that the pay channel costs which are a major drag on IMCL’s profitability today will in future be a pure pass through cost and in addition IMCL is assured a minimum guaranteed revenuethrough network operating fees. A combination of these factors will ensure that IMCL will begin to become profitable effective the implementation of the Tariff Order. This ordertakes effect from January 03, 2019 in the fourth quarter of the current financial year.

    IMCL has expanded its offerings to 700 TV Channelsand is today providing the largest number of TV channels across the country. The Cable TV industry is today witnessing consolidation and fresh investments. This consolidation is beneficial to IMCL as this enables it to align with a large number of mid-sized operators who are looking at partnering with a large MSO.  IMCL has today close to 5 million subscribers and has plans to double this number. The superior HITS technology continues to fuel the organic growth of the Company in the Phase III & IV locations across the country. 

  • SITI Networks Limited announces “SITI PlayTop”, its first Hybrid Set Top Box

    SITI Networks Limited announces “SITI PlayTop”, its first Hybrid Set Top Box

    MUMBAI: SITI Networks Limited, has announced that it will be introducing a range of Set Top Boxes for delighting its customers. To begin with, the company has announced, “SITI PlayTop”, its first Hybrid Set Top Box.

    “SITI PlayTop” is a hybrid device that has YouTube and YouTube Kids in-built along with the benefits of SITI HD+ Digital Cable Television. The box has an in-built Wi-Fi receiver which allows customers to use their existing broadband connection of any ISP to make their TV Smart. “SITI PlayTop has DVR facility along with USB play- back functionality. This hybrid STB is being initially launched in SITI’s dominant markets of West Bengal, Bihar, Jharkhand, Assam, Odisha, Delhi & Haryana followed by a progressive rollout across India in the coming months.

    This is the first device in a range of customer focused offerings planned by SITI. The company intends to roll out more devices in their line-up over the next few months.  While launching “SITI PlayTop”, Mr. Rajesh Sethi of SITI Networks Limited mentioned –

    “SITI has been at the forefront for delighting our customers with latest technology. In this regard, we are today introducing SITI PlayTop, our first hybrid set top box. SITI PlayTop has YouTube & YouTube Kids in-built, which is the most actively viewed app globally. This box will make any TV Smart while bringing the ultimate viewing experience of SITI HD+ Digital Cable Television with DVR facility. Customers will be able to cast YouTube and other apps from their mobile phones on to their TV using SITI PlayTop. The box features a Smart and Intuitive UI which is a testament of our teams’ customer connect.

    After initial rollout in our dominant markets of West Bengal, Bihar, Jharkhand, Assam, Odisha, Delhi

    & Haryana, we will be progressively rolling out across India in the coming months.

    This is just the first step for us, in a long range of customer delight devices which we intend to rollout in the coming months in line with our Customer First motto. We are working with several OEM partners to incorporate AI and machine learning into our work-flows and offerings. The idea is to have a holistic device line-up for our customers to choose from.”

  • Siti relooks at broadband as cable subscription drove revenues in FY18

    Siti relooks at broadband as cable subscription drove revenues in FY18

    BENGALURU: In FY 2017 (fiscal or year ended 31 March 2017, previous year), the Essel Group’s Siti Networks Ltd (Siti) was all gung-ho about broadband. In its annual report for fiscal 2017, the company said that it had become the largest multi-system operator (MSO) and a leading wired broadband services provider. The tone of the company’s 2017 annual report showed that Siti was fired up by the doubling of broadband revenue in FY 2017 as compared to FY 2016 to Rs 97 crore (about 8 per cent of total revenue for fiscal 2017) from Rs 48.6 crore (about 4 per cent of total revenue for fiscal 2016). The company’s broadband operations added 7.2 lakh home passes during the year taking the total footprint to 16.1 lakh homes. Broadband customer base grew to 2.28 lakh by Q4 2017 exit, up 73 per cent year-on-year (y-o-y). Further, Siti said in its FY 2017 annual report that it planned to channelise more capital to its broadband division, which it then felt was a highly scalable opportunity.

    Cut to FY 2018 and the story has changed. Siti’s broadband operations with a total footprint of 16.8 lakh homes had a base of 2.5 lakh customers.  Siti added just about 22,000 broadband subscribers in fiscal 2018, and y-o-y broadband revenues grew by only 4 per cent to Rs 101 crore in FY 2018.The company said that it was working on building a growth strategy in the sector.

    Quoting from its fiscal 2018 Annual report:

    “We are also looking closely at better and centralised inventory controls, besides identifying unsustainable locations running on IP bandwidth with the objective of phasing them out. We also aim to focus more aggressively on high definition (HD) penetration, broadband expansion, and improving monetisation in digital addressable system (DAS) phase III and IV areas.”

    At another place in the 2018 annual report Siti states:

    “In broadband, your company is looking to deepen its penetration levels in its existing markets to better utilise existing capital expenditure incurred. Going forward, we are also looking to arrive at an ideal business model that will allow us to grow profitably and sustainably in this segment, especially considering the disruptive pricing environment prevalent in mobile internet currently and the entry on new entities in wired broadband.”

    It must be noted that broadband contributed to just about 8 percent and 7 percent to Siti’s revenues in FY 2017 and FY 2018 respectively. Cable business is and has been the major revenue earner for Siti.

    While its broadband business has not met with Siti’s expectations, its cable business and more so subscription revenue has been the revenue growth driver. Cable subscription (Video) revenue in FY 2017 grew 39 per cent to Rs 569 crore as compared to Rs 410.2 crore in FY 2016. Siti’s cable subscription revenue grew 41 per cent in fiscal 2018 to Rs 799.7 crore as compared to the previous year. Carriage revenue, which had grown by 17 per cent in FY 2017 to Rs 300.1 crore from Rs 256.8 crore was almost stagnant in terms of growth in FY 2018. It grew by about 1.3 per cent to about Rs 303.8 crore in fiscal 2018. Siti’s activation revenue has also been almost constant and will taper off once its entire subscriber base has been digitised, since this is generally a one-time revenue. Activation revenue in FY-2016 was Rs 170.6 crore, it was Rs 170.1 crore in FY 2017 and was Rs 175 crore in FY 2018. Advertisement revenue had declined in FY 2017 to Rs 13.5 crore from Rs 32 crore in FY 2016 has increased in FY 2018 to Rs 18.5 crore.

    Siti has yet to report profit after tax and reward its shareholders with dividends. But, the good thing is that Siti’s operating profits (EBITDA) without activation revenue have grown 2.6 times in FY 2018 to Rs 150.7 crore from Rs 58.6 crore. Overall EBITDA including activation has grown 41.9 per cent in FY 2018 to Rs 324.5 crore from Rs 241.2 crore in the previous year.

    All numbers in this report are consolidated unless stated otherwise.

    Siti’s position with regards to broadband is more of a norm rather than an exception. Many other MSOs’ and LCOs’ that have also been providing broadband internet services have had muted numbers from this business stream in FY 2018 as compared to the previous year. This implies either a slow growth or even de-growth of subscriber numbers, reduced ARPUs’ or even both.

    Mukesh Dhirubhai Ambani’s Reliance Jio Infocomm Ltd (Jio) has been the biggest disrupter that has got both wireless and wireline internet service providers struggling to match up. With its plans to start FTTH wired internet services, with strategies that many in the industry term as ‘predatory’, it is likely to make the ground difficult to sustain and grow for incumbents.

  • Pay TV execs feel need to innovate to remain relevant, finds study

    Pay TV execs feel need to innovate to remain relevant, finds study

    MUMBAI: With the advent of digital content platforms, pay TV industry across the world is facing stiff competition. The pay TV Innovation Forum report produced by Nagra in association with research firm MTM, found that 90 per cent of executives believe that pay TV providers will have to innovate strongly to remain competitive and relevant.

    The research has also found that 84 per cent of pay-TV executives expect competition for paid-for video services to increase dramatically over the next five years. The number of 90 per cent of executives who believe that pay TV providers will have to innovate strongly is 5 per cent up from last year. However, participants are optimistic they can continue to appeal to paying consumer.

    Findings of the report are based on extensive regional research conducted in Europe, North America, with a special focus on the United States, Asia-Pacific and Latin America.

    It has also highlighted that the pay TV (http://www.indiantelevision.com/television/tv-channels/viewership/india-china-to-provide-50-of-global-pay-tv-subs-by-2023-180411) industry is converging towards a platform-agnostic model and is transitioning into a paid-for-video market spanning a variety of offerings including standalone OTT and direct-to-consumer services. Moreover, 77 per cent of pay-TV executives consider innovation to be one of the top three strategic priorities for the industry.

    “Change is the one constant in the global pay-TV industry, driven by numerous pressures from competitors, pirates and subscribers, making it challenging for service providers and content owners to maintain revenue growth,” said NAGRA product marketing senior director Simon Trudelle.

    Executives have agreed that piracy remains a major problem. In addition to that, 47 per cent of respondents believe that piracy will lead to greater pressures on the industry over the next five years.

    “It is exciting to see a growing number of service providers embarking on the next stage of innovation, encompassing product and service portfolio improvements, alongside advanced technology platforms and new commercial and operating models,” said MTM managing partner Jon Watts said. “By keeping innovation at the core of their strategies and recognising the need to diversify, service providers can continue to compete effectively and grow revenue,” he added.