ITV

Category: Multi System Operators

  • Don’t place a TV channel under multiple genres, TRAI warns MSOs

    NEW DELHI: Coming down heavily on the practice of listing television channels under multiple genres (LCN), the Telecom Regulatory Authority today told multisystem operators to strictly comply with the regulatory framework in letter and spirit.

    The regulator warned MSOs that action would be taken against MSOs under the TRAI Act if they failed to comply with the regulations in this regard.

    TRAI said that the MSOs have been mandated to create genres in the electronic programme guide (EPG) and to place the channels in the genres as directed by the broadcaster.

    The press note said this makes it easier for the subscriber to find the channel of his or her choice and is therefore consumer friendly.    

    At the outset, the regulator said it had taken several measures from time to time to protect the interests of consumers as well as service providers of the broadcasting and cable services sector. For providing a level playing field to service providers and to ensure orderly growth of the sector, the Authority issues regulations, orders and directions from time to time.

    For the cable TV service  provided through digital addressable systems,  the technology provides for a ‘Electronic  Programme  Guide  (EPG)”  wherein  the channels being carried  on the operator’s network  can  be arranged  and  indexed  in a simple. easy  to understand  manner  so that the consumer  can easily  go through this guide and select the channel  of his choice instead of  flipping  through a ll the  channels. This display of channels in EPG can be genre-wise where all the channels of  a particular  genre  are  listed under that genre.  

    The extant regulatory  framework provides that every  broadcaster  is required  to declare the genre of its channel  and such genre shall be either ‘News and Current Affairs’  or  ‘Infotainment’  or  ‘Sports’  or ‘Kids’ or ‘Music’ or   ‘Lifestyle’ or ‘Movies’ or ‘Religious or Devotional’ or ·General Entertainment  (Hindi)’  or ‘General Entertainment (English)’ or ‘General  Enter1ainment (regional language)’.  The MSOs carrying a channel on its network, has been mandated to place that channel in the genre so declared by the broadcaster of that channel.  The MSO is required to ensure that a ll the channels falling in a particular genre appear in its network’s EPG under that genre. 

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  • Hathway reports improved performance

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 18.5 per cent growth in consolidated Total Income  (Total Revenue) for the fiscal ended 31 March 2017 (FY-17, current year or fiscal) as compared to FY-16. The company’s consolidated operating profit increased 58.9 percent in fiscal 2017 as compared to fiscal 2017.

    Hathway reported consolidated Total Revenue of Rs 13,682.3 million for FY-17 as compared to Rs 11,550.4 million in the previous year. Consolidated Income from Operations increased 18.9 percent in the current year to Rs 13,371.2 million from Rs 11,241.8 million in the previous year.

    Consolidated simple EBIDTA including operating and other income increased to Rs 2,210.7 million (16.2 percent of Total Revenue) in the current year as compared to Rs 1,391.1 million (12 percent of Total Revenue) in fiscal 2016.

    Hathway’s consolidated net loss for FY-17 reduced to Rs 1,929.4 million from Rs 2,376.8 million in FY-16.

    Let us look at the other numbers reported by the company

    Consolidated total expenses for the year increased 14.6 percent to Rs 15,636.6 million (114.3 percent of Total Revenue) as compared to Rs 13,646.3 million (121.4 percent of Total Revenue) in FY-16.

    Pay channel cost went up by 8.8 percent in FY-17 to Rs 4,716.9 million (34.5 percent of Total Revenue) from Rs 4,335.6 million (38.6 percent of Total Revenue) in the previous year. Employee Benefits Expense increased 8.1 percent to Rs 931.5 million (6.8 percent of Total Revenue) in fiscal 2017 from Rs 862 million (7.7 percent of Total Revenue) in the previous fiscal.

    Other operational expense in FY-17 increased 25.9 percent to Rs 2,564.7 million (18.7 percent of Total Revenue) from Rs 2,036.5 million (18.1 percent of Total Revenue) in the previous year. Other expenses increased 11.4 percent to Rs 3,258.5 million (23.8 percent of Total Revenue) in FY-17 from Rs 2,925.2 million (26 percent of Total Revenue) in the previous year.

    Finance costs increased 23.3 percent in the current year to Rs 1,107.5 million (8.1 percent of Total Revenue) from Rs 898.4 million (8 percent of Total Revenue) in the previous year.

    The company has stated in its financial results: Pursuant to the approval of the internal restructuring by the board of directors and the shareholders and after seeking in-principle prior approvals from the lenders, Hathway transferred its Cable Television business by way of slump sale to its wholly owned subsidiary Hathway Digital Private Limited (earlier known as Hathway Datacom Central Private Limited) (said Subsidiary) with effect from close of business hours as of March 31, 2017 for a total consideration of Rs. 302 crore (Rs 3,020 million). In view of the same, all assets and liabilities including borrowings attributed to the cable television business got vested in the said subsidiary.

  • MSOs urged to make payments for registration online only

    NEW DELHI: All multi-system operators can make the payment of Rs 100,000 towards Processing Fee to the Information and Broadcasting Ministry from January 2O17 through Bharat Kosh only and not in physical form of payment (Bank Draft or cheque)..

    This is part of the move to implement ‘Digital India’ Initiative with the launch of the “Online Non-Tax Revenue Portal (NTRP) for collection of Non-Tax Revenue Receipts.”

    All applicants seeking multi system operator (MSO) registration were informed on 13 January 2017 about this.

    However, the Ministry said today that some app|ications are sti|| being received a|ong with Bank Drafts.

    The Ministry said these are being returned with the request to make the payment through Bharat Kosh.
    For making payments through NTRP, applicants may visit bharatkosh.gov.in. User guide is available under bharatkosh.gov.in/Static/Template/Userguide/pdf.

    Application for MSO registration can also be-submitted online and details are available under broadcastseva.gov.in.

  • Siti revenue up across all streams

    BENGALURU: Siti Networks Limited (Siti) reported 4.4 percent growth in revenue for the year ended 31 March 2017 (FY-17, current year or fiscal) as compared to the previous fiscal. Consolidated revenue growth was driven by revenue growth in all the streams that contribute to Siti’s numbers. The company in its earnings release says that its broadband internet services revenue doubled to Rs 970 million, Subscription revenues grew 39 percent to Rs 5,690 million and Carriage revenues increased 17 percent to Rs 3,000 million in the current year vis-à-vis the previous year.

    Overall, Siti reported consolidated total income of Rs 12,208.01 million and Rs 11,691.56 million in the current and previous years respectively. Operating revenue in FY-17 grew 4.3 percent to Rs11,949.16 million from Rs 11,460.40 million in FY-16.

    The company says that it deployed more than 2.1 million set top boxes during the year despite the delay in implementation of phase 3 digitization due to litigation. It says that its digital video base was about 10 million at the exit of March 2017. Siti says that during the year 0.11 million of its customers adopted HD services taking the total HD customer base to 0.16 million by exit FY-17.

    Siti has bolstered its local channels content with tie-ups with Eros, Ultra, Cineprime, ADB Mobile and Entertainment and now has a portfolio of 130 plus local channels on a pan-India basis. It is also looking to add 7 to 8 new local channels for its North India viewers under certain genres and languages.

    The company says that Siti-Ditto OTT services grew strongly with the addition of 29,000 customers during the quarter – 1 January to 31 March 2017, taking the total customer base to 60,000.

    The company’s bottom line however showed some declines. Consolidated loss was higher at Rs 1,792.31 million in the current year as compared to a loss of Rs 412.91 million in the previous year. Consolidated EBIDTA including other revenue in fiscal 2017 at Rs 2,286.94 million (19.1 percent of Total Income) declined 15 percent from Rs 2,690.57 million (23.5 percent of Total Revenue).

    Company speak

    Siti executive director and CEO V D Wadhwa said: “Our tenacious execution has ensured stellar growth in our video revenue whereas broadband growth is falling short of our expectations. The management is highly committed towards improving monetization and operating profit across all phases, during the current year. We are well positioned to reap the benefits of improved monetization across phases as we simultaneously continue to expand our Broadband reach. The implementation of GST is expected to simplify the collection process, bring in greater transparency and will provide a boost to the growth of the sector.”

    Let us look at the other numbers reported by Siti

    Consolidated Total Expenditure increased 6.4 percent y-o-y to Rs 13,607.36 million (111.5 percent of Total Income) in FY-17 from Rs 12,054.82 million (103.1 percent of Total Income) in FY-16

    Consolidated Employee Benefit Expense increased 32 percent to Rs 832.90 million (6.8 percent of Total Income) in the current quarter from Rs 630.90 million (5.4 percent of Total Income) million in FY-16. 

    Consolidated Carriage sharing, pay channel and related costs in FY-17 increased 5 percent to Rs 5,971.33 million (48.9 percent of Total Income) from Rs 5,686.36 million (48.6 percent of Total Income) in the previous year.

    Consolidated Finance costs in the current year reduced 8.9 percent to Rs 1274.47 million (10.4 percent of Total Income) from Rs 1,399.29 million (12 percent of Total Income).

    Consolidated Other expenses increased 28.4 percent to Rs 2,954.67 million (24.2 percent of Total Income) in FY-17 from Rs 2,302.03 million (19.7 percent of Total Income) in FY-16.

  • Den Networks cable operations revenue up; broadband revenue doubles

    BENGALURU: Indian multi system operator (MSO) Den Network reported 21.8 percent increase in operating revenue for its Cable distribution (cable) business  for the year ended 31 March 2017 (FY-17) at Rs 1,075.54 crore as compared to Rs 883.24 crore in the previous year (FY-16). The company’s broadband internet revenue in FY-17 more than doubled to Rs 81.80 crore from Rs 39.80 crore in FY-16.

    The company claims in its earnings release that Cable business EBIDTA increased to Rs 144 crore in FY-17 from Rs 18 crore in the previous year. The company’s EBIDTA in FY-17 doubled to Rs 254 crore from Rs 127 crore in FY-16. Broadband business EBIDTA reduced to a loss of Rs 10 crore versus a loss of Rs 66 crore in the previous year. Pre-activation EBIDTA in FY-17 grew to Rs 135 crore as compared to a loss of Rs 107 crore in FY-16.

    Overall, Den Networks revenue increased 19.1 percent in fiscal 2017 to Rs 1198.26 crore from Rs 1,005.87 crore in the previous fiscal. Cable subscription revenue grew 33 percent to Rs 646 crore in FY-17 from Rs 487 crore in FY-16. Den Networks reported a lower net loss of Rs 189.57 crore in FY-17 as compared to a loss of Rs 431.30 crore in the previous year.

    The company says that it has focused largely on cash collections during the year which has brought down the net debt of the company to Rs. 181 crores as at March 31, 2017, thereby deleveraging its balance sheet.

    Den Networks CEO SN Sharma said, “The cable subscription revenues grew by 33 percent in the current financial year and contributed to the financial turnaround for the company. The EBITDA for DAS I has grown from 23 percent to 30 percent and the EBITDA for DAS II has grown from 11 percent to 18 percent this year. The company continues to focus on core businesses, while preparing for HD Box deployment, cost optimization and technology up gradation to enhance consumer experience and improve operational efficiency.”

    Let us look at the other numbers reported by Den Network

    Den’s total expenses in FY-17 reduced 1.8 percent to Rs 1,321.19 crore from Rs 1,344.83 crore in FY-16. Content Costs in FY-17 was almost flat at Rs 473.28 crore as compared to Rs 473.22 crore in the previous year. Placement fees costs in FY-17 reduced 6.2 percent to Rs 50.20 crore from Rs 53.50 crore in FY-16.

    Employee Benefits Expense in FY-17 was also almost flat (increased 0.3 percent) to Rs 123.37 crore from Rs 123.01 crore in the previous year. Other Expenses in fiscal 2017 declined 19.1 percent to Rs 331.68 crore from Rs 409.91 crore in fiscal 2016.

  • Change in provisions for bad debt reduces Ortel profits

    BENGALURU: The Bibhu Prasad Rath led Ortel Communications Limited (Ortel) reported less than one tenth profit after tax (PAT) for the year ended 31 March 2017 (FY-17) at Rs 1.43 crore (0.69 percent margin of Total Revenue or TIO) as compared to the Rs 11.93 crore (6.1 percent margin of TIO). Ortel reported 5.6 percent growth in total revenue at Rs 207.21 crore as compared to the Rs 196.29 crore for FY-16.

    During 2017, the company has changed the basis of estimating the provision for doubtful receivables from retail customers. Because it has ventured into new geographies, the company has now made provision for doubtful retail receivables based on the management’s best estimate as compared to the previous practise of making provisions for receivables for more than 6 months. The company has provided for Rs 24.9 crore in FY-17 as compared to Rs 16 crore in FY-16. In its earnings presentation, the company has shown a longer period for receivable days for 2017 at 115 days as compared to 61 days in the case of 2016.

    Other factors that affected the company’s profitability in FY-17 were lower Average Revenue per User (APRU) for Ortel’s cable (Rs 147 in FY-17 as compared to Rs 151 in FY-16) as well as broadband businesses (Rs 375 in FY-17 as compared to Rs 398 in FY-16).  

    Further, the company’s broadband bandwith cost more than doubled to Rs 17 crore in FY-17 from Rs 8.32 crore in the previous year which Ortel says is a result of higher intercity carrying costs for expansion of digital services.

    Ortel’s cable subscriber base in FY-17 increased to 7,50,471 from 6,28,710 in FY-16. Broadband subscriber base in FY-17 increased to 73,087 from 72,482 in FY-16.

    Ortel’s revenue growth was due to 22 percent growth in Cable TV revenues in FY-17 to Rs 159.6 crore from Rs 130.5 crore in FY-16 while Broadband revenues reported a growth of 7 percent at Rs 35.3 crore in FY-17 from Rs 32.9 crore in FY-16. EBIDTA for fiscal 2017 was 55.1 crore as compared to Rs 70.3 crore in the previous year.

    Total expenditure for FY-17 increased 13.5 percent higher at Rs 205.78 crore as compared to Rs 181.30 crore in FY-16. Programming cost increased 2.5 percent in FY-17 to Rs 38.45 crore as compared to Rs 37.51 crore in FY-16. Employee Benefits Expense in FY-17 increased 9.2 percent to Rs 24.56 crore from Rs 22.50 crore in FY-16.

    Company speak:

    Ortel CEO Rath said, “Second half of FY2017 has been a challenging period for the Company with key operating parameters performing below our expectations. However, I am happy to share that we have reported some improvement during Q4 and the management’s thrust in the coming quarters will be to significantly enhance the overall operational performance.
    We have sustained the positive EBITDA momentum in the Non-Odisha Markets. As we consolidate our new subscriber base in relatively new states like Andhra and Telangana and improve key metrics, we hope to continue delivering similar results.

    We have consciously slowed inorganic acquisitions as we look to first demonstrate the strength of owning and controlling the ‘last mile’ from the existing subscriber base. So on the back of our exceptional ‘last mile’ business model, we anticipate a marked improvement in financial and operational performance in FY18.”

     

  • Arasu licence for ‘affordability’, pvt MSOs concern to be studied, says Naidu

    MUMBAI: Affordability and world-class service were the main reasons for granting last month Digital Addressable System (DAS) licence to Tamil Nadu Arasu Cable TV Corporation Ltd (TACTV), the union minister for information and broadcasting Venkaiah Naidu said at an event of All India Radio in Chennai. 

    Naidu, however, said the government would take into consideration the concerns of private multi-system operators. He hoped that the state government would be mindful of the conflict of interest issue amid competition. 

    The Central decision had come as a surprise as it was against Telecom Regulatory Authority of India (TRAI) recommendations of permitting state government in broadcasting or distribution of television channels. 

    MIB was working to strengthen radio and Doordarshan owing to increasing competition, Naidu said. The minister, who paid a surprise visit to the Doordarshan office, said the Press Information Bureau website will be operational in Tamil from 15 August.

    Also Read:

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  • MSOs prepared for new regime, AIDCF stresses on ‘a la carte’ offers from 1 Sept

    MUMBAI: All-India Digital Cable Federation (AIDCF), the apex body of Digital Multi System Operator’s (MSOs), has urged all its members to gear up for the new tariff regime. 

    In its meeting held on Monday, the members were advised to gear up to meet the requirement under the new regulation and prepare their backend to handle dynamic offerings including offering channels on à la carte basis. While the broadcasters and MSOs are free to form their own bouquets, the ultimate “right to choose” to end-consumers will happen by giving them the ability to choose channels on à la carte basis.

    This step has been taken to stream-line MSOs services so that the end-consumer does not face any hiccup when the new regime kick-in on 1 September 2017. It should be noted that the members of the apex body are fully committed to migrate to the new tariff and interconnect regime.

    AIDCF would also like to put on record that the new tariff regime will bring in more transparency and fuel growth by regulating the broadcast distribution system. It will also help in creating a more synergetic environment unlike the current unfettered one and will give the end-consumers, the freedom to choose what they want to watch and provide safeguard to ensure that the channels are being offered with fair trade margin, thus harmonising the entire eco-system.

    The Federation also welcomed the Supreme Court judgment as it will be an ideal scenario if all the legal procedures are put to rest before the new regime kicks in. This way there will be no ambiguity and application of the new regime will be smooth and seamless.

    AIDCF president TS Panesar said, “We are happy to note that the Supreme Court has requested the  Madras High Court to hear this matter on a daily basis beginning 12 June 2017  and come out with the judgement in 30 days. This does not affect the 1 September implementation deadline and we are hopeful that it will be implemented on time.”

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  • J&K operators in a quandary, claim banned channels have GEC & all-religion content

    MUMBAI: The Indian Government’s directive to the Jammu and Kashmir Government to stop the transmission of 34 television channels from Muslim countries including Iran, Pakistan, and Saudi Arabia has put the cable operators in a quandary. Several foreign channels went off air in most parts of the Valley on Sunday after the Indian government order.

    Most of these channels broadcast programmes about sports, religion and lifestyle and none incites violence, Kashmir Cable Operators Association stated. The ban comes around a month after the state blocked social media web sites throughout the Valley.

    The Indian government had asked the J&K administration to take stern action against private cable operators airing illegal Pakistani and Saudi Arabian channels. Union minister M. Venkaiah Naidu has reportedly directed the J&K government to submit a report at the earliest. www.indiantelevision.com could not speak to the director (BP& L) in the ministry on the concrete plan of action in spite of several attempts.

    Operators reportedly broadcast around 34 channels illegally such as Peace TV, Ary QTV, Saudi Sunnah, Karbala, Saudi Quran, Al Arabia, Paigham, Hidayat, Sehar, Hadi TV, Sehar, Noor, Madani, Bethat, Ahlibat, Falak, Dawn News, Geo News, Ary News, TV One, ARY Masala, PTV Sports, A TV, Abb Tak News, 92 News, Duniya News, Waseb TV, Samaa News and Express News.

    According to the operators, they could neither defy the ban order nor could they afford to stop telecasting channels which are highly popular among the masses in the Valley. Kashmir Cable Association stated that there were around 300 channels in the Valley which include 22 channels for the Sikh community, 15 for Hindu and 25 Islamic.

    The Cable Operators Association stated that it has decided to defy the order as their business heavily depends on these channels. Asked about the consequence, it stated that they were prepared if the authorities seize their equipment and close down their business.

    Channels such as ARY Musik telecasts Sufi music, ARY Zauq or Ham Masala are cooking channels from Pakistan while Saudi 1 airs live feed from Haram Sharif in Makkah 24×7 as does Karbala TV from the shrine of Imam Hussain, a TV viewer said.

    An order issued by the principal secretary, home department, R K Goyal, to all the deputy magistrates (deputy commissioners) of the state said. “It needs being noted that transmission of non-permitted TV channels apart from attracting the violation (of the law), has the potential to encourage or incite violence and create law and order disturbances in the Kashmir Valley.”

    Some cable operators alleged that the Delhi-based communal media, motivated by anti-Islam and anti-Pakistan politics of Hindutva, is behind the closure of Pakistani and religious channels in the territory. The operators said that they were showing all the religious channels belonging to every faith, which includes Hinduism, Islam, Sikhism and others.

    Meanwhile, prominent Islamic scholars on Monday expressed serious concern over the ban, saying the curbs on religious teachings would have repercussions. They said that channels such as Saudi Al-Quran and Saudi Sunnah only telecast Islamic teachings.

    While Delhi has banned the channels, operators in Kashmir cite the Ranbir Penal Code, a separate law in Kashmir, according to which the ban is not applicable.

  • Time Warner revenues, net income up in first quarter

    BENGALURU: Time Warner Inc., (Time Warner) reported growth in revenue across all its segments – Turner, Home Box Office (HBO) and Warner Bros in the quarter ended 31 March 2017 (Q1-17, current quarter) as compared to the corresponding year ago quarter (y-o-y). Reported total revenue in Q1-17 was $ 7,735 million 5,8 percent more than  in Q1-16, at $7,308 million. Net Income attributable to Time Warner shareholders increased 17.3 percent y-o-y to $1,424 million in the current quarter from $1,214 million in Q1-16.

    Time Warner chairman and CEO Jeff Bewkes said: “We’re off to a strong start to 2017, as we continue to benefit from the investments we’re making in the best content while also developing new revenue streams that will drive growth and meet consumer demand for great experiences built around their favorite programming and brands. Warner Bros. delighted audiences in both film and television, with global hits in Kong: Skull Island and The LEGO Batman Movie and more series across broadcast for the current season than any other studio. Turner had another successful airing of the NCAA Division I Men’s Basketball Tournament across platforms, while CNN grew its total day ratings by 21 percent among adults 25-54, and remained the leader in digital news. Together, Turner and Warner Bros. also launched our new Boomerang-branded SVOD service, adding to our growing portfolio of products that are reaching consumers directly.”

    “Home Box Office shined in the quarter highlighted by our limited series Big Little Lies, which was both a critical and cultural breakout. Last Week Tonight with John Oliver is having its most-watched season to date, and we recently had the much anticipated returns of Silicon Valley and Veep. Looking ahead, we remain on track, pending completion of regulatory reviews and receipt of consents, to close our merger with AT&T Inc. before the end of 2017. We remain excited about the potential for this combination to accelerate the pace of innovation in our businesses,” Bewkes continued.

    Turner

    Revenues increased 6.3 percent ($182 million) to $3,088 million, due to increases of 12 percent ($175 million) in Subscription revenues and 16 percent ($29 million) in Content and other revenues, partially offset by a decline of 2 percent ($22 million) in Advertising revenues. The company says that Subscription revenues benefited from higher domestic rates and growth at Turner’s international networks, partially offset by lower domestic subscribers. Content and other revenues increased due to higher domestic licensing revenues. The decline in Advertising revenues was primarily due to lower delivery at certain domestic networks, partially offset by increases at Turner’s sports and news businesses and growth at Turner’s international networks.

    Operating Income decreased 5.6 percent ($69 million) to $1,170 million. The growth in revenues was more than offset by higher expenses mainly due to increased programming costs. Programming expenses increased 17 percent primarily due to higher sports costs related to the first year of Turner’s new agreement with the NBA and higher original programming costs.

    HBO

    HBO revenues increased 4 percent ($62 million) to $1.6 billion, due to an increase of 5 percent ($66 million) in Subscription revenues, partially offset by a decline of 1 percent ($4 million) in Content and other revenues. Subscription revenues increased due to higher domestic rates and subscribers and international growth. The decrease in Content and other revenues was primarily due to lower home entertainment revenues, partially offset by higher licensing revenues.

    Operating Income increased 22 percent ($106 million) to $583 million, reflecting the growth in revenues and lower selling, general and administrative, programming and distribution expenses says that company. Programming costs decreased 2 percent, reflecting lower original programming expenses related to a reduction in amortization resulting from using a longer estimated utilization period for original programming beginning in the second quarter of 2016, partially offset by higher acquired theatrical programming expenses.

    Warner Bros

    Revenues increased 8.2 percent ($256 million) to $3.4 billion, primarily due to higher television and theatrical revenues partially offset by lower videogames revenues. Television revenues increased primarily due to higher domestic licensing revenues related to certain library series. Theatrical revenues grew due to an increased number and the mix of box office releases, which included Kong: Skull Island and The LEGO Batman Movie, as well as higher home entertainment revenues primarily related to the release of Fantastic Beasts and Where to Find Them and higher carryover revenue. Videogames revenues declined due to a fewer number and the mix of releases in the current year period and lower carryover revenue.

    Operating Income increased 15.1 percent ($64 million) to $488 million, due to the increase in revenues, partially offset by higher associated theatrical and television costs of revenues and print and advertising expenses.