Category: Multi System Operators

  • GTPL Hathway records standalone net profit of Rs 30.5 cr in Q1 FY22

    GTPL Hathway records standalone net profit of Rs 30.5 cr in Q1 FY22

    New Delhi: Cable TV and broadband service provider GTPL Hathway Limited (GTPL) has clocked a standalone net profit of Rs 30.5 crore for the quarter ended 30 June.

    The net sales reached Rs 391.5 crore, improving from Rs 347.6 crore recorded in the same quarter last year. The consolidated net profit for the quarter stood at Rs 53 crore, up from Rs 46.4 crore in the corresponding quarter a year ago, while the consolidated revenues stood at Rs 602 crore. The overall revenues improved on the back of improvement in the EBITDA (including EPC) levels at Rs 138 crore, which was seven per cent higher year-on-year. The Q1 FY22 PAT stood at Rs 47.5 crore, up 16 per cent y-o-y.

    The company also reduced its debt burden by Rs 16.8 crore during the quarter. The finance cost was down 78 per cent y-o-y.

    GTPL added 55,000 net broadband subscribers in Q1 FY22 and the broadband revenue crossed Rs 91. 8 crore, up by 74 per cent YoY. The total number of subscribers as on 30 June were 6. 90 lakh of which 2.50 lakh are FTTX subscribers.

    Meanwhile, the company continues to widen its footprint in its existing markets and penetrate into new markets through inorganic routes. As on Q1 FY22, paying subscribers stood at 0.73 crore.

    GTPL Hathway, managing director, Anirudhsinh Jadeja said, “GTPL Hathway continued to deliver on key KPIs during Q1 FY22. The highlight of the quarter was robust subscriber additions & subscription revenues for Broadband business, strong profitability and debt repayment. GTPL has further reduced its debt by Rs 16.8 crore in Q1 FY22.”

    Jadeja said GTPL will continue to march forward on its stated strategic roadmap by coming up with interesting new products and services, enhancing customer experience, strengthening its digital infrastructure capabilities, and accelerating its footprint in the existing and new markets. 

  • TCCL implements ATEME’s Titan Live solution for its cable TV platform

    Mumbai: ATEME on Tuesday announced that Thamizhaga Cable TV Communication Pvt Ltd (TCCL), one of the largest cable distribution companies in India, has chosen to implement its TITAN Live solution for their cable TV platform.

    The Tamil Nadu-based multi-system operator has recently upgraded its headend platform to complement its existing cable service offering. ATEME’s TITAN Live is being used to deliver a high-quality cable-TV offering to TCCL customers. “TITAN Live enables TCCL to improve its subscribers’ viewing experience while reducing operational costs by providing exceptional video quality at low bitrates. Its full software approach also attempts to simplify deployments and operations, and profile reconfigurations, automatic switchovers, and fast updates also become much easier,” said the company in a statement.

    Speaking on the collaboration with ATEME, TCCL managing director Sakilan said, “We have always had a strong emphasis on quality of service and content. ATEME’s TITAN Live met our need for the best quality of image coupled with the most efficient bandwidth saving – better than any other vendor. We are very pleased with our choice – both in terms of the product and the unparalleled support we received from the ATEME team, which understands our priorities and our need to provide content of the best quality to our current and future audiences.”

    ATEME’s vice president, APAC – sales, Gautier Vandomme said, “We are very excited to be on this journey with TCCL. Viewers in India have such a rich variety of content to choose from; it is a great satisfaction to be helping them view this content at the best quality.”

  • NXTDigital turns around its business with Rs 13.66 crore profit in Q4

    NXTDigital turns around its business with Rs 13.66 crore profit in Q4

    KOLKATA: NXTDigital has turned its business profitable by raking in Rs 13.66 crore profit after tax (PAT) for the fourth quarter. The company has reported Rs 277.96 crore consolidated revenue for the quarter.

    It posted Rs 0.32 crore PAT in the previous quarter and a loss after tax of Rs 43.43 crore in the corresponding quarter of the previous year. The revenue also grew by 6.95 per cent over the previous quarter of Rs 259.90 crores and by 22.38 per cent over the corresponding quarter of the previous year.

    The Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) for the quarter at Rs 67.54 crores was higher by 8.10 per cent over the EBITDA of the previous quarter of Rs 62.47 crores and a 167 per cent growth over the EBITDA of the corresponding quarter of the previous year.

    For overall FY 21, the company recorded an EBITDA of Rs 232.08 crore, growing by 6.16 per cent over the EBITDA of the previous year of Rs 218.62 crores (excluding one-time revenues of Rs 123.12 crores in the previous year. Consolidated revenue for the year remained consistent at Rs 1,008.5 crores, marginally down from Rs 1,038 crores –due to a reduction in the low-margin non-core trading business.

    “The stellar performance can be attributed to the company’s focus on uninterrupted customer service during the lockdown and after, innovative products and solutions to combat the myriad of ground challenges, driving close to a 100 per cent digital mode of collections on a prepaid basis and the unstinting and tireless efforts of all our employees and our Last Mile partners – all of whom rose to the occasion, without exception,” NXTDigital MD & CEO Vynsley Fernandes said.

    The company will continue to focus on its transformation to an “all-digital” services company, driving a host of new products and solutions, whilst expanding into new geographies. One of the key growth drivers for the future will be its recently launched infrastructure sharing PaaS or Platform-as-a-Service offering.

  • NXTDIGITAL & Siti Networks ink industry-first pact for infra sharing

    NXTDIGITAL & Siti Networks ink industry-first pact for infra sharing

    NEW DELHI: Hinduja Group’s Headend-in-the-Sky (HITS) platform NXTDIGITAL and multi-system operator (MSO) Siti Networks have inked a first-ever infrastructure sharing agreement in the MSO space in the country. The move, the first of its kind, will have two conventional competitors share infrastructure, heralding a new era of collaboration in the digital platforms space.

    The potential market for such PaaS (Platform-as-a-Service) or infrastructure sharing services in India is estimated at over 60 million cable TV subscribers; connected to around 1,000 MSOs – largely independent or regional players, who often face such cost, connectivity and quality challenges.

    NXTDIGITAL MD & CEO Vynsley Fernandes commented, “With significant investments in technology, our HITS platform was designed to facilitate MSOs deliver digital content across India. We’re happy that Siti Networks, India’s biggest and most progressive MSO, has chosen to work with us, sharing our infrastructure to deliver their services in markets where conventional connectivity remains a challenge. Our HITS PaaS solution, in line with the government’s support for our industry is the right step in this direction, helping MSOs save on connectivity costs whilst improving their quality of service; and we are sure this tie-up with Siti will be a landmark moment in the industry.”

    This move is in line with Siti strategy of enhancing its operational efficiencies and providing high up-time and quality services to its customers across the country. Financially, this move will help Siti control its connectivity costs and deliver uninterrupted services to existing and new markets.

    Siti will leverage the HITS infrastructure to deliver its signals to its local cable operators (LCOs), thus providing its services to semi-urban and rural subscribers while also expanding its footprint across the country through satellite. For this integration, NXTDIGITAL’s PaaS vertical has worked with Siti Networks’ existing set-top boxes to provide services with the HITS platform wherever required.

    Siti Networks CEO Anil Malhotra said this infrastructure sharing initiative forms an integral part of the government’s digital India strategy and would help in the spread of other services like broadband to the last mile faster.

    “Siti has been focusing on enhancing its operational efficiencies. With the government approving Infrastructure sharing in our domain, this tie-up with NXTDIGITAL is a natural progression and helps us overcome the difficulties of a terrestrial network in some markets through the HITS approach. Operational efficiencies, along with uninterrupted services, will help improve our customer experience. Both Siti and NXTDIGITAL have integrated the HITS infrastructure with Siti’s existing subscriber management and conditional access systems while ensuring that the existing capex is better sweated. Both teams have ensured all necessary testing and compliances. We do believe that evaluation of more such Infrastructure sharing,” he detailed

    Through the PaaS model, NXT expects to see MSOs faced with challenges of rising connectivity costs and quality – transition to a robust and independent sustainable model with better quality of service.

  • In hybrid push, Siti Networks launches Siti PlayTop Android TV set top box

    In hybrid push, Siti Networks launches Siti PlayTop Android TV set top box

    New DELHI: In a bid to cement its place in the hybrid set-top box space, multi-system operator (MSO) Siti Networks has launched Siti PlayTop Magic, a 4K HDR STB which offers Android TV features along with linear TV. For a superior next-generation entertainment experience, the STB uses NAGRA’s card-less content security solution. This represents NAGRA’s first Android TV project in India based on the Google MediaCAS framework for Android TV deployments.

    Through its partnership with NAGRA, Siti Networks hopes to rapidly deploy both secure and market-leading Android TV services across its three-million strong subscriber base in India including a comprehensive content offering and access to a large library of applications.

    Additionally, Siti PlayTop Magic's mobile app, available on both iOS and Android platforms, brings a single subscription for multiple OTT apps like Hungama Play, Shemaroo Me and Adda Times in customers’ palms.

    The roll-out of Siti PlayTop STB and iOS/Android apps is a crucial part of the MSO’s expansion strategy in India, remarked Indian Cable Net Company Ltd (JV partner of Siti) director Suresh Sethiya.

    "We are delighted to partner with Nagra, who provides comprehensive support for Android TV through an end-to-end content protection ecosystem. This box will make any TV Smart while bringing Siti HD+ digital cable television's ultimate viewing experience with a DVR facility,” shared Siti Networks CEO Anil Malhotra.

    The NAGRA solution provides comprehensive support for Android TV through an end-to-end content protection ecosystem that can be extended at a time of an operator’s choosing through additional options such as forensic watermarking and/or anti-piracy services.

    Deployed “as a service,” it enables operators to take advantage of reduced total cost of ownership and regular modular and cloud-driven updates and frameworks for both CAS and DRM integration, while ensuring the ecosystem remains protected from pirates.

    “We’re proud to partner with Siti Networks on its continued expansion within the Indian market,” said NAGRA SVP – sales APAC Stephane Le Dreau. “The strength, level of innovation and unique features of NAGRA’s content and service protection services for Android TV provides operators around the world with the tools they need to protect their content and rapidly deploy and protect their next-generation services against piracy.”

  • VBS 2021: The way forward for linear TV ecosystem

    VBS 2021: The way forward for linear TV ecosystem

    KOLKATA: The debate of over-the-top (OTT) platforms versus pay TV has been centre stage in media and entertainment conversations over the last couple of years. More recently, the subject has died down as the industry reached the conclusion that both linear TV and on-demand TV will co-exist in India for a long time, unlike the markets in the west. But the change in technology and consumer behaviour have definitely thrown challenges at the traditional TV ecosystem. At the Video and Broadband Summit (VBS) 2021, the industry discussed how to stay resilient even amid the flux.

    The summit started with a welcome note by Indiantelevision.com founder, CEO and editor-in-chief Anil Wanvari as the prestigious conference marked its seventeenth edition this year. Back in 2003, when the summit (earlier IDOS) was held for the first time, the industry was much more disorganised. Over the passage of nearly two decades, the industry has gone through multiple changes like digitisation, new price regime etc.

    India has escaped cord-cutting, TV viewing is growing but the industry cannot afford to lean back, Wanvari said. He also cautioned alarm that despite the projections of the Indian pay-TV ecosystem reaching $15-16 billion revenue, it still stands at around $11 billion.

    “Only about 800 million are being served by linear TV. Another 500 million are yet to be served. Traditional TV is definitely strong here but it has come under attack. Broadcasters have to find ways of combating the surge of edgy and almost meaningful content which has recently been brought under the regulation of I&B ministry that is being put out by OTT platforms to hook and retain customers. Now DTH operators, HITS providers, Cable TV players have to find ways of making their operations even more scalable, provide additional services,” Wanvari commented.

    Post the welcome note, VBS 2021 hosted its first panel discussion, moderated by Wanvari, bringing together top executives from broadcasters and distribution platform operators (DPOs). In ‘The leaders speak laying out a profitable future’ session, Indiacast Media Distribution president Amit Arora, Siti Networks CEO Anil Malhotra, Star & Disney India- India & International TV distribution president Gurjeev Singh Kapoor, Travelxp 4K founder & CEO Prashant Chothani, Fastway Transmission & Netplus Broadband group CEO Prem Ojha, and NXTDigital MD & CEO Vynsley Fernandes discussed the industry’s recovery post-Covid2019 and the way beyond.

    The leaders agreed that the industry has come out of the Covid2019 impact and is bouncing back gradually, although there are still some hiccups. “We all had to recast our business models, there were a lot of learnings that happened. One was that the government ensured that cable TV and broadband were treated as essential services,” Fernandes stated. Fastway’s Ojha added that technology took a big leap catalysed by the pandemic situation.

    “Majority of content consumption still happens on DPO level. They were keeping up the service level in the pandemic. I am really amazed to see how all of them were able to put up that spirit to their team that let’s not get frightened, let’s get the connectivity going. DPOs are the real media Covid warriors. This is my learning from the pandemic – that there has to be cross-dependency and there has to be faith between the entire ecosystem, then we are going to have much bigger recovery, much bigger growth going forward,” Chothani said. While the subscription count went down during the crisis due to migration, MN Vyas asserted that the numbers are bouncing back. “We’re looking forward to the good fiscal year 2022,” Arora said.

    Other than a dip in subscriber addition due to the Covid crisis, the broadcasters and DPOs could not undertake any price revision due to the lack of clarity on NTO 2.0. Kapoor said there is now competition in every genre reducing the risk of monopoly, both for broadcasters and MSOs. Hence, the pricing of content should be left with market forces rather than implementing heavy regulations.

    Talking about future opportunities, the leaders agreed that the conversion from SD to HD can be one potential area if communicated properly to consumers. Along with that, wired broadband is another potential growth driver for MSOs as the penetration is very low currently. Even if deep-pocketed players like Jio starts aggressive acquisition, there will still be enough opportunities left for other players given the fact there are only 22 million home broadband subscribers currently, Malhotra noted.

    Along with a robust business model, technology acts as the deciding factor in today’s fast-moving era. The second session discussed ‘Future proofing DPOs on video delivery solutions’ in the presence of NXTDigital group CTO Ru Ediriwira, Asianet Satellite Communications Ltd vice president & technology head Salil Thomas, Broadpeak Business Development vice president  Xavier Leclercq, and Planetcast Media Services founder director MN Vyas.

    Ediriwira said it is important to focus on future proof technology but new technology can come anytime and disrupt the industry despite the precautions. According to her, it is important to keep abreast of current developments and be open to new opportunities. Thomas echoed a similar sentiment, saying every organisation should be ready to adapt to changes, no matter what.

    “I think futureproof is something which is never possible. We have to really look at what is needed –at least what is needed in the next five years. We have to make a sea change in our distribution system. TV has to be more intelligent,” Vyas added.

    The panel also discussed the possibility of IPTV as a solution to simplify the network. Although it needs long-term investment and has not been considered widely, it could be the right direction to look at. Leclercq said, “Everywhere in the cable network, efficiency is reducing, complexity is moving everything to IP based delivery. I think one of the encouraging steps in this direction is seeing some big scale MSO in Europe, US launching IP only set top boxes.”

    The summit rounded off with a session focusing on ‘Customer First’ moderated by PwC India’s partner and leader – media, entertainment & sports advisory Raman Kalra. The panelists included some of the top names from the broadband and cable industry, such as JioFiber president Anuj Jain, Siti Networks ‘ DGM Strategy Anurag Nigam, UCN Cable Network operations head Debashis Mohanty, GTPL Hathway vice president Yatin Gupta and Shemaroo Entertainment broadcasting business COO Sandeep Gupta.

    Kalra opened the session by mentioning how customers today are spoilt for choice when it comes to choosing content to consume, what with video on demand and OTT platforms mushrooming with ever increasing channels of entertainment. Despite demands for content and internet broadband having skyrocketed during the pandemic, the challenge of remaining relevant is a concern for both the service and content provider, as well, in the highly competitive market. So the question arises on how to acquire and retain a customer base with the constantly changing customer demands and behaviour.

    The panel debated the pros and cons of the pandemic and the post-Covid market scenario. Everyone agreed that the period was a huge shot in the arm to the industry as people were confined to their homes with increasing digital requirements for their work, study and entertainment. It resulted in a major spike in cable TV and broadband consumption in the initial months of the pandemic, which flattened out towards the latter half of the lockdown.

    Strategies were discussed on how best to meet consumer needs and ensure customer stickiness. The session concluded by summarising that there’s a need for businesses to invest deeply in knowing and engaging with their customers. Analysing customers’ content consumption data can also lead to rich dividends.

  • What will it take to make Indian CAS acceptable to MSOs?

    What will it take to make Indian CAS acceptable to MSOs?

    KOLKATA: Despite the overwhelming importance of Conditional Access System (CAS) in the overall content distribution network, there have been few discussions on CAS. Moreover, the market has been dominated by foreign vendors for a long time now. If the government comes up with clear standardisation of CAS and offers Indian vendors viable, competitive solutions, the transition may begin, believe industry leaders.

    At a virtual roundtable organised by Indiantelevision.com, moderated by founder, CEO & editor-in-chief Anil Wanvari, panellists discussed how the cable industry can be self-reliant in terms of security equipment and technology. TRAI advisor (broadcasting & cable service) Arvind Kumar, MyBox Technologies MD and CEO Amit Kharbanda, SITI Networks Ltd CEO Anil Malhotra, Maharashtra Cable Operators Federation (MCOF) president Arvind Ramesh Prabhoo, Metro Cast Network promoter Nagesh Narayandas Chhabria, Kerala Communicators Cable Ltd (KCCL) business head N Padmakumar, Safe View chairman Pradeip Nanda participated in the session.

    What did MSOs look for while setting up a security system during digitisation?

    The moderator kickstarted the session asking what were the main areas looked at by MSOs while setting up a security system during digitisation. Malhotra mentioned that the whole purpose of addressability post digitisation is lost without proper security in place. He shared that his MSO focuses on a robust system, ease of operation, 24/7 support system, scalability, the ability to satisfy broadcasters’ audits while choosing a security system.

    “Unfortunately, there is no security which is fool-proof and every security will get breached after a certain period of time. You have to consider a security system that survives the onslaught of hackers for up to 12 years at least, which is the life of an STB. When we choose anything for our network, we keep these things in mind,” Malhotra added.

    In 2013-14, Metro Cast had surveyed which CAS vendors had already deployed services to more than a million or two million customers before selecting one, shared Chhabria. Initially, they went to European CAS vendors but later moved on to Chinese vendors as their service was 30-40 per cent cheaper. Unfortunately, there was no significant Indian CAS vendor at that time, he noted.

    MCOF’s Prabhoo said that the local cable operators had limited choice because CAS and SMS as per regulation were supposed to be in the purview of MSO. So, they had very little say in which are the STBs and which is the backend SMS. It was the MSO that had the onus of choosing it.

    “On the broadband and internet side, the first important thing was what was the availability. Therefore, with a ban on products from China, we had to look into more Indian products – which is cost-effective – and what service we got from them. These were the prime considerations while we were upgrading our networks,” he commented.

    Is ‘Vocal for Local’ story taking off?

    “Efforts should be made to adopt Indian technologies. Entrepreneurs, vendors didn’t have aspirations to become big or go global in the past. Now after a major push by the government in terms of initiatives and the narrative of vocal for local, they are aspiring to grow. But they can’t do it without support from the service providers who are catering to the masses. The supply chain must be endorsed by DTH operators, MSOs, whoever in the chain, then only it will encourage new or existing entrepreneurs,” TRAI’s Kumar said.

    For instance, Safe View is a domestic producer who is very keen on working with Indian MSOs. Nanda mentioned that it is a 100 per cent Indian company and 120 small and big MSOs work with it. Moreover, it has a huge footprint overseas. Safe View has been in the market for six years with three million subscribers on its system.

    Talking about the trust deficit with Indian vendors, KCCL’s Padmakumar added that the concern is more about security and quality. In his view, CAS should be secured entirely so that customers don't get affected and there should not be any scope for piracy in the system. If domestic players can provide such CAS internally, the industry would be happy to utilise their services, he said. However, it should be cost-effective as well.

    On the other hand, Malhotra pointed out that Indian CAS entered quite late in the market, when the majority of the STBs had already been deployed. Had they come at the beginning of 2012 as the MSOs were deciding which CAS to take, the majority of STBs would have bought from Indian companies only.

    “Even now also with Atmanirbhar Bharat, we are not seeing a push on the set top boxes because it is not an overnight thing. One needs to start integrating and create a road map. The Indian companies are still not talked about much, because there’s still hope that the government will understand and let imports continue. Six months later we will say we do not have the same volume that we have even now. However, the government is very clear now, Make in India cannot be an assembled product. And that for me is where we missed the bus time and again,” Kharbanda elaborated.

    Chhabria also noted that the manufacturers are not getting total support from the Centre in keeping prices competitive. Naturally, price conscious MSOs are going for the Chinese players. If the same product is given at a competitive rate, then they would love to go with the Indian product. Hence, he is of the view that the government has to support the manufacturers with some incentives.

    “As far as TRAI is concerned, we have already given recommendations on indigenous telecom equipment manufacturing. We are also mulling over what we can do for the broadcasting sector also. Recommendations on interoperability of STB have already been given. I think this is the right time to blend vocal for local narrative with interoperable STBs. Security part also becomes stronger with indigenous technology,” TRAI’s Kumar commented.

    Standard guidelines for CAS is need of the hour:

    However, all the MSOs agreed that adoption will be higher once TRAI comes up with clear guidelines and standardisation of CAS. In addition to that, if TRAI or an independent agency starts certification of CAS, then it will enhance the trust of MSOs. Testing procedures for CAS in the country also need to be initiated as early as possible.

    “Every stakeholder has to play a role. There is a role for the government and the regulator also. We are making a framework for standardisation and I think that will happen very soon. In telecom, we had given recommendations to the government on telecom equipment manufacturing. Similar recommendations can be given to the government for the broadcasting sector. Most importantly, stakeholders, especially MSOs, have to come forward to use Indian-origin technology. It should be their call that at least all STB or CAS should be replaced by homegrown tech in future. As far as CAS is concerned, it is a question of only a thousand distributors who have to adopt indigenous technology. Hence, it should be the MSOs' will to support Indian CAS vendors,” Kumar stated.

  • Indian broadcasting & cable TV market to surpass $19 billion by 2026, says report

    Indian broadcasting & cable TV market to surpass $19 billion by 2026, says report

    NEW DELHI: 2020 was packed with unforeseen highs and lows for the Indian broadcasting and cable TV sector. From record viewership, to plummeting ad revenues, to the NTO 2.0 wrangle, the industry is still in a rather precarious position. Despite these challenges, the broadcast and cable TV market, currently valued at $11.61 billion, is expected to reach $19.06 billion by FY2026, states a report by TechSci Research. 

    The India Broadcasting and Cable TV Market report holds favourable regulations, technological advancements and growing investment opportunities as key factors driving this growth. The increasing demand for TV sets, especially in rural India, is also further boosting the market. Moreover, the expansion of the entertainment industry with greater demand for international TV channels and shows will propel the growth of this sector through FY2026.

    In recent times, India has witnessed a surge in active subscriber base with entry of various multi system operators (MSOs). The digitisation of cable TV in the country is at an advanced stage with markets driven by content innovation and product offerings. Direct-to-home (DTH) subscriptions are growing rapidly with increasing per capita disposable income. The increased usage of 3G and 4G services along with an influx of new content creation methods are some other contributors expected to drive the growth of the Indian broadcasting and cable TV market. 

    Increasing disposable income coupled with rising urbanisation has changed the preferences of Indian consumers towards enhanced experience of television viewing. The concept of home theatre has been gaining traction among the new generation, with people always looking for advanced viewing options and latest technologies to better their experience. These factors are expected to fuel growth in the country’s TV and broadcasting market over the next five years.

    Also, there is a rising trend for personalised experience and premium television cable and DTH offerings in India, wherein customers demand personalised channels, picture quality, multiple functionalities in set top boxes, such as a different screen for children, etc. This would likely continue in the coming years as one of major trends for TV and broadcasting industry during the forecast period.

    “Southern region accounts for more than 31 per cent of the demand in India’s broadcasting and cable TV market and the region is expected to continue its dominance in the country during the forecast period as well. Major demand in the southern region is coming from Bengaluru, Kerala, and Karnataka. The area has seen significant developments since the recent years regarding broadcasting and cable technology,” said TechSci research director Karan Chechi.

    India’s broadcasting and cable TV market can be segmented based on type, revenue generation, and region. Based on type, cable TV and satellite accounted for the dominant share as an increasing number of users are shifting towards DTH services from the traditional cable operators, due to high picture quality and affordable prices.

    Some of the major players operating in this segment include Siti Networks, DEN Networks, Tata Sky, GTPL Hathway, Sun Direct TV, Dish TV India, Bharti Telemedia, NXTDIGITAL, Fastway Transmission, and Asianet Satellite Communications, among others.

  • ‘Foes to friends’: NXTDigital ramps up focus on collaboration & infra sharing

    ‘Foes to friends’: NXTDigital ramps up focus on collaboration & infra sharing

    KOLKATA: With the evolution of the media and entertainment industry, the boundary between friends and foes is fading away. The future is not about competition, but collaboration for long term sustainability, NXTDigital media group CEO Vynsley Fernandes believes. Moreover, the future of the distribution industry lies in consolidation and bundling all bills together, he says.

    Fernandes, an old face in the cable distribution industry, has recently been elevated as media group CEO of Hinduja group’s NXTDigital. The new role not only includes digital cable, HITS but also broadband and content business. To drive the growth of all businesses, he is looking to synergise cable TV or HITS service with broadband. While the video segment has got around 5.38 million customers, the broadband business nets 0.0408 million subscribers currently. He notes that the company has already seen good traction in combination service during Q2.

    However, NXTDigital is looking at pushing the product in selective markets where it already has a strong presence and a qualitative need for video and broadband is noticeable. The company has a stronghold in Mumbai, the rest of the west market, as well as Bengaluru and Delhi. Adding to its bastions, it has now set sights on West Bengal, Andhra Pradesh and Telangana market. Fernandes emphasises that bundling products and solutions is very important at this point in time for the entire industry. Additionally, one of the biggest benefits of bundling is cost optimisation. During Diwali, NXTDigital has launched its hybrid device NXT Connect, which offers linear as well as OTT.

    “We are looking at penetrating our own customers of cable TV and HITS. We are looking for broadband to grow as it has been growing. The broadband segment has seen 16 per cent quarter-on-quarter growth in Q2. We are hoping for double-digit growth over the next two quarters in terms of broadband as a function of synergy. On the cable subscription side, we are not going to pursue revenue at the cost of profitability. We are not just rolling out discounted packages as ours is a qualitative product,” he comments.

    The ministry of information and broadcasting (MIB) has recently amended the HITS guidelines by allowing the sharing of infrastructure by HITS operators with MSOs. Hence, Fernandes identifies it as a big area of growth. As infrastructure sharing can reduce the cost of connectivity significantly, he is of the belief that many operators would like to ride on their platform. Currently, they are exploring how to leverage this opportunity in the B2B model. He also mentions that competitors will have no hesitation in partnering with them thanks to the transparency brought in by the new tariff order.

    “One of the benefits of infrastructure sharing will be cost-optimisation. Before NTO, the biggest cost was content. You had to negotiate with the broadcaster. Thanks to NTO, the whole model is changed and there is transparency. The second biggest cost for everyone is connectivity. We believe connectivity costs can be leveraged by more and more operators joining together to share infrastructure and share services like our own infrastructure sharing. If they cut down the cost, they will have a better bottom line,” he explains.

    Among other options, there is still a huge opportunity for value-added service (VAS) as well, he adds. The main reason is the availability of various content in the linear model and in different regional languages. He also mentions that content provided by One Take Media and Shemaroo Entertainment is quite unique. As the company has seen good traction in the last few years, it has kept on continuing those services along with adding new ones. The MSO looks at three metrics for VAS — age, group and genre.

    According to Fernandes, the first half of the financial year 2020 had several positive as well as negative impacts on the sector, owing to the Covid2019 crisis. The lockdown brought greater engagement, higher viewership. For instance, kids programming has seen good offtake during the period while IPL has boosted TV viewership in the latter half. But labour migration, economic pressure did not bode well for the industry. However, he maintains that TV has a long future ahead with a continuous cycle of consumer evolution, gradually moving the ladder from FTA to pay TV, and the combination of HD and OTT.

  • NXTDigital posts strong Q2 results

    NXTDigital posts strong Q2 results

    NEW DELHI: NXTDigital has posted a year-on-year EBITDA growth of 15.8 per cent at Rs 50.7 crores for the second quarter, an improvement of 2.7 per cent over the previous quarter.

    While revenues remained stable despite the impact of the Covid2019 pandemic, the company posted an EBIDTA of Rs 102.1 crores for the half year ended 30 September 2020, a growth of 8.7 per cent over the corresponding period of the previous year. By laying greater focus on operational efficiency rather than pure revenue growth at the cost of profitability, it was able to improve EBIDTA margins to 21.7 per cent for the half year, compared to 19.2 per cent in the corresponding period of the previous year.

    NXTDigital has not only been able to maintain its subscriber base but grow its video and data businesses, in spite of the serious negative sentiments of the pandemic. The company has maintained its collection efficiency of over 99.5 per cent under its prepaid collection model.

    The board has designated Vynsley Fernandes as media group chief executive officer of NXTDigital with oversight of all the media businesses of the group encompassing cable TV, HITS and broadband. He will be responsible for leading the overall business and operations of the group as it continues to expand across the media spectrum.

    With NXTDigital being the only HITS platform in the country, it’s expected to get a boost from  the sharing of HITS infrastructure with other Multi-System Operators (MSOs) across the country, as recently notified by the ministry of information & broadcasting. The potential for infrastructure sharing or managed services stands at over 69 million cable TV households today – comprising smaller independent and regional MSOs.

    NXTDigital CEO Vynsley Fernandes said “The focus in Q2 was to lay greater emphasis on operational efficiency, rather than pure revenue growth at the cost of profitability. Our strategy was to continue enhancing customer engagement whilst rolling out innovative solutions and driving cross-selling relentlessly. The result is manifested in our key performance indices – where not only has our EBIDTA grown both year-on-year and quarter-on-quarter; but has also seen growth in margins.”

    Going forward, NXTDigital will continue to focus on consolidating and growing its serviced subscriber base, expected to cross 10 million; including onboarding of more than 5 million of managed services customers. It will also continue to drive cross-selling of digital video, broadband and value-added services whilst offering innovative bundled products and packages in diverse geographies.

    The company will also roll out its NXTCONNECT device, which is a single device for customers to access live television channels, OTT content, social and other apps, games & much more, to commemorate the festival season. The launch will be coupled with the rollout of NXTGO, an innovative dongle-type device that can be plugged into an OTT set top box or an Android-based television and provide immediate access to live television channels securely.