ITV

Category: Multi System Operators

  • Zeel provisions for outstanding Siti Networks dues

    Zeel provisions for outstanding Siti Networks dues

    KOLKATA: The outstandings of Siti Networks and Dish TV has been one of the major concerns for Zee Entertainment Enterprises Limited (Zeel). While the DTH platform Dish TV is making payments on the line of the revised plan for recovering dues, Siti Networks has failed to play old subscription overdues.

    During the Q2 earnings call of ZeeL, MD & CEO Punit Goenka said that the company has collected the receivables related to revenues in the first half of FY 21 from the cable network. But it has failed to pay subscription overdue in accordance with payment plan agreed earlier due to various challenges including Covid2019, the pressure to prioritise lender’s payments, Goenka added.

    As Siti Networks has made payment for all content delivered during April-September, this cash and carry model will be continued going forward. But as it has failed to pay old outstandings, ZeeL has taken a provision of Rs 81.2 crore towards subscription receivable which was overdue. Goenka emphasised that the company has not written off any debt and it would make all endeavours to recover the dues.

    “Further on account of accelerated payment grievance by some of the lenders due to delay in restructuring by Siti Networks and their failure to negotiate extended repayment plans, the company has provided for extra liability of Rs 97 crore as of 30 September 2020. The provisions have been taken as a provisional  measure and company will take necessary efforts s to recover this due,” Goenka commented.

    On the other hand, Dish TV has been able to cope up with the new payment plan as its financial position has improved. The DTH operator is paying its monthly billing along with clearing a part of its arrears. Currently, Dish TV’s outstanding stands at Rs 4. 98 bn compared to Rs 5.84 bn at end of FY 20. Moreover, Goenka stated the company expects that Dish TV will accelerate payments leading to reduced arrears.

  • NXTDigital launches new consumer connect program for Durga Puja

    NXTDigital launches new consumer connect program for Durga Puja

    KOLKATA: As the country gears up to welcome Goddess Durga,  NXTDigital, the media arm of the Hinduja Group, has come up with a new consumer connect program – ‘ NXTDigital DURGOTSAV’. The program has been launched with the goal of spreading the message that though the festivities may be diluted due to the challenges posed by Covid2019, one can still celebrate the homecoming of Maa Durga through the company’s Durga Puja initiative.

    As part of this initiative,  NXTDigital is encouraging consumers to record videos of themselves performing under three categories, namely –  song, dance and recitation and upload the same on durgotsav.nxtdigital.in starting 17 October 2020. Entries will be open till 23 October. This will be further promoted across  NXTDigital's social media channels and website.

    Select participants will get a chance to feature on the television channels of INDigital and  NXTDigital network as a part of this video contest during the 5 days of the festival. Moreover, video entries will be judged and the top three videos in the three categories stand a chance to win attractive gifts by answering a simple question.

    NXTDigital Ltd marketing and brand head Rajdeep Rudra said: “The unprecedented success of a similar initiative Ganpati Bappa Morya to celebrate Ganesh Chaturthi earlier this year, spurred us into extending the model to celebrate the festival of Ma Durga. We want to help our customers feel connected to the goddess and commemorate her in the same way as it has been done before, from the comfort of their homes. Through this initiative, our aim is to capture the essence of the festival, promote the feeling of joy and one-ness and spread the message of building a safe environment – even if it is done virtually.”

    Shortlisted videos will also be edited and broadcast on INDigital and NXTDigital (HITS) channels from 22 Oct to 25 Oct i.e. the entire duration of Durga Puja.

  • Hathway profits up on lower revenue in second quarter

    Hathway profits up on lower revenue in second quarter

    BENGALURU: The Mukesh Dhirubhai Ambani controlled MSO and broadband internet services provider Hathway Cable and Datacom Limited (Hathway) reported consolidated profit after tax (PAT) at Rs 52.33 crore for the quarter ended 30 September 2020 (Q2 2021, quarter or period under review) against loss of Rs 2.42 crore for the corresponding year-ago quarter Q2 2020 (y-o-y). PAT for the period under review was 20.8 percent lower quarter-on-quarter (q-o-q) than the Rs 66.06 crore the company had posted for the immediate trailing quarter Q1 2021. However, consolidated operating EBDITA for the period under review at Rs 120.39 crore (27.9 percent of operating revenue) grew 14.7 percent y-o-y from Rs 105.71 crore (23.8 percent of operating revenue) and was also 1.9 percent higher q-o-q than the Rs 118.18 crore (28.2 percent of operating revenue) in Q1 2021.

    Hathway’s consolidated operating revenue fell 2.5 percent y-o-y in Q2 2021 to Rs 431.24 crore from Rs 442.11 crore in Q2 2020, but was 2.8 percent higher q-o-q than Rs 419.56 crore. Consolidated total income (total revenue) during the quarter fell 9.8 percent y-o-y to Rs 460.66 crore from Rs 510.77 crore, and was 5.6 percent lower q-o-q than Rs 488.22 crore.

    Broadband and CATV segment numbers for Q2 2021

    Hathway has two major segments – broadband internet services (BB) and cable television or CATV.

    BB segment saw operating revenue increase 10 percent y-o-y in Q2 2021 to Rs 153.34 crore from Rs 139.36 crore in the corresponding year ago quarter and grew 4.7 percent q-o-q from Rs 146.51 crore in Q1 2021. The segment’s operating result (operating profit) in Q1 2021 was Rs 6.68 crore as compared to an operating loss of Rs 25.10 crore in Q1 2020, but was 14.8 percent lower than the operating profit of Rs 7.84 crore in Q1 2021.

    CATV segment revenue declined 8.2 percent y-o-y in Q2 2021 to Rs 277.90 crore from Rs 302.75 crore in Q2 2020, but was 1.8 percent more q-o-q than the Rs 273.05 crore for Q1 2021 The segment reported more than two-fold increase in operating result (operating profit) – which grew 116 percent y-o-y in Q2 2021 to Rs 21.32 crore from Rs 9.87 crore in Q2 2020 and was 25 percent higher q-o-q than Rs 17.06 crore in the immediate trailing quarter/

    Let us look at the other numbers reported Hathway for Q2 2021

    All numbers in this report are consolidated unless stated otherwise.

    Total expenditure in Q2 2021 declined 19.9 percent y-o-y to Rs 407.90 crore from Rs 509.50 crore in the corresponding period of the previous year and was 4.7 percent lower q-o-q than Rs 427.92 crore in Q1 2021.

    Pay channel cost during the quarter under review declined 4.4 percent y-o-y to Rs 132.46 crore from Rs 138.55 crore, but was almost flat (up 0.2 percent) q-o-q as compared to Rs 132.18 crore for Q1 2021. Employee cost in Q2 2021 declined 3.6 percent y-o-y to 24.44 crore from Rs 25.36 crore, but was 0.6 percent higher q-o-q than Rs 24.30 crore in Q2 2020. Operational expenses in Q2 2021 grew 19.8 percent y-o-y to Rs 81.65 crore from Rs 68.18 crore and were 5.1 percent more q-o-q than Rs 77.67 crore in Q1 2021.

    Finance cost was less than one-twelfth (declined 91.8 percent) y-o-y to Rs 4.27 crore from Rs 51.87 crore in the corresponding quarter of last year and was a little more than one-eighth (declined 87 percent) than the Rs 32.96 crore in Q1 2021. Other expenses in Q2 2021 declined 31.5 percent y-o-y to Rs 72.30 crore from Rs 105.01, but were 7.5 percent higher q-o-q than the Rs 67.23 crore in Q1 2021.

  • SPNI goes head to head with Indore-based Digiana Projects on “piracy”

    SPNI goes head to head with Indore-based Digiana Projects on “piracy”

    KOLKATA: The battles in cable TV land continue, what with life gradually coming to the new normal.  Sony Picture Networks India (SPNI) ,for instance, says it is cracking the whip on Indore-based MSO Digiana Projects for allegedly availing signals through clandestine means. SPNI has gone ahead and switched off the transmission of its TV channels to the distributor as it has allegedly not paid its dues, and is pirating its channels. While the broadcaster has filed a contempt petition in the Delhi high court, the MSO has petitioned the Telecom Disputes Settlement &  Appellate Tribunal (TDSAT) to come to its rescue.

    The court has taken cognisance of piracy and admitted contempt of court case against Digiana along with issuing a notice to submit its response to the said petition. The matter will be listed in the second week of November this year. 

    In its response to TDSAT, SPN has charged that Digiana is continuing piracy even after undertaking before the court that it will not illegally broadcast the network’s signals. The broadcaster stated that it is difficult to deal with such a partner who is choosing unfair means along with withholding a huge amount in arrears – Rs 3.03 crore.

    However, Digiana claimed in its petition that the number is inflated and actually stands at Rs 1.48 crore. TDSAT has not found any good grounds to accept the claim and asked the defaulter to produce further materials and evidence. The next date of hearing is 2 November. In the meantime, the tribunal has directed Digiana to pay Rs 2 crore within ten days of the notice for the restoration of SPNI channels. Apart from payment Rs 2 crore, TDSAT also directed Digiana to clear dues of all forthcoming invoices within a period of 15 days from the receipt of Invoice.

    When indiantelevision.com reached out to the MSO, a senior staff member said that they had requested SPN for a fee waiver due to loss of revenue in Covid2019 crisis. He claimed that instead of waiving fees, the broadcaster hiked its bouquet price, which made the entire situation more difficult for its management. He also added that SPNI did not properly inform the MSO about the disconnection.

    indiantelevision.com tried reaching the CEO of Digiana for comment but he was unavailable at the time of publication.

    This isn't the first time that Digiana is in the dock over illegal transmissions of a broadcaster's signals. Last year, the Madhya Pradesh police registered a case against Digiana Projects after investigations revealed that the MSO had been stealing and broadcasting the signals of Star India at about 26 locations across the country.

    Major broadcasters have frequently complained about unauthorised transmission. Even major MSOs have also raised their voice against illegal theft of signals. A number of complaints before the MIB and TRAI remain unsolved, a senior executive recently said.

    The latest controversy involving SPN and Digiana comes amid an ongoing stand-off between broadcasters and TRAI over the amended new tariff order (NTO 2.0). While the case is sub-judice, the overall instability in the industry due to Covid2019 has precipitated more conflicts regarding signing agreements, timely payments, piracy, etc.

  • Vynsley Fernandes becomes CEO NXTDigital

    Vynsley Fernandes becomes CEO NXTDigital

    Vynsley Fernandes has been known as the CEO of Hinduja group-owned Indusind Media & Communications which runs cable TV MSO InCable TV, a position he took up in August 2018. As of last month, his role and designations have changed: he has been redesignated as CEO of the theheadend in the sky (HITS) venture NXTDigital and president of IndusInd Media.

    Since joining, Vynsley or Vyns as he is known has managed to return the struggling NXTDigital businesses to profitability, thanks to better management at IMCL which he headed

    On a consolidated basis, revenues grew at NXTDigital by 65 per cent over FY19, from Rs 704.62crore to Rs 1,162.10crore; operating EBIDTA rose significantly to Rs 218.01crore against a loss of Rs 72.61crore; its PAT is a healthy Rs 110.05 crore as against a loss of Rs 303.43 crore in FY19.

    Thanks to the great showing, Vyns got elevated to CEO of NXTDigital with the additional responsibility of IMCL.

    Vyns updated his designation on linkedin today. 

     

  • Ashok Mansukhani bids adieu to NXTDigital

    Ashok Mansukhani bids adieu to NXTDigital

    KOLKATA: Ashok Mansukhani is departing from NXTDigital putting an end to a 24 year long association with the Hinduja group.The industry veteran will retire on 30 September. 

    According to a BSE filing, his term as managing director and key managerial personnel was extended on 29 April 2020  until NXTDigital's next annual general meeting (AGM). The company recently announced its AGM date to the BSE as 30 September 2020. 

    Mansukhani joined the Hinduja group in 1996 when was appointed as a director of the cable TV venture IndusInd Media & Communications. He was then appointed executive director before becoming its managing director. The group later went in for reorganisation of the business through a process of demerger, merger and further integration of Indusind Media and its HITS operation under Grant Investrade with their parent Hinduja Ventures, which he was heading. Hinduja Ventures was later rechristened as NXTDigital. Mansukhani oversaw the group and the companies through this entire process. 

    Read more news on Ashok Mansukhani

    His last postion with Hinduja Ventures was as managing director. Mansukani has over the years handled various senior responsibilities in the group’s media and corporate sphere.

    The Delhi University alumnius had spent the first half of his career in central government as an Indian Revenue Service officer.

    During the course of restructuring NXTDigiatl CFO Amar Chintopanth has been appointed as whole-time director.

  • TRAI’s Arvind Kumar prescribes broadband medicine for MSOs & LCOs

    TRAI’s Arvind Kumar prescribes broadband medicine for MSOs & LCOs

    KOLKATA: Digital is it. Across the country, and age groups, Indians are getting online, and consuming more high speed broadband data than ever before, whether it is for entertainment, education, commerce or banking. While the telcos have been serving their needs for a large part, the increasing maw for data and speeds has thrown up increasing opportunities for multi-system operators (MSOs) and local cable operators (LCOs)  even as their video distribution operations are seeing churn.

    The Telecom Regulatory Authority of India (TRAI) advisor Arvind Kumar spoke about this potential future of MSOs in a virtual fireside chat hosted by Elara Capital. Kumar said that a number of people want broadband services currently and they are looking at fibre-to-home services. According to him, it is not possible for a telecom service provider to satiate the demand of 300 million households even in the next ten years. 

    Read our coverage on TRAI 

    “Therefore MSOs must focus on providing a broadband connection with cable TV services. This is right for them. This makes a very good business case for the MSOs. Neither any TSP will be able to fight with them, nor DTH operators will be able to do so. The MSOs should focus on how to give broadband service at the same time along with cable services to retain subscribers,” Kumar added. He also mentioned that the Covid2019 crisis has proved the demand for broadband connectivity. 

    He is optimistic about the ability of MSOs to stave off the competition from DTH operators despite the latter having a technological edge. Kumar opined that MSOs can compete with DTH operators in terms of the quality of service, cost-effectiveness and broadband services. Considerably, reports came out after the implementation of the new tariff order indicate that MSOs are losing a large number of subscribers to DTH players.

    Read our coverage on MSOs 

    Along with other economic issues, MSOs face the issue of conflict with local cable operators (LCOs) quite often. According to Kumar, the two parties will keep getting at loggerheads with each other until they understand the whole game. He explained the need for LCOs to upgrade their thought process as well as technology. “The LCOs have to support MSOs to stay relevant in the game. Otherwise, both parties will lose their market share to other contenders,” he pointed out.

    Kumar emphasised that LCOs must concentrate on broadband plans and discuss with MSOs. They need to express the longing of coming into the overall picture. He also mentioned that Jio will get support from MSOs if they don’t receive it from the last mile operators. However, he added that LCOs have expertise in dealing with consumers, local authorities which is important to help any broadband operator.

    As per TRAI data, there were 19.38 million wired broadband subscribers in India as of 31 May 2020. The top service providers were BSNL (7.93 million), Bharti Airtel (2.41 million), Atria Convergence Technologies (1.64 million), Hathway Cable & Datacom (0.97 million) and Reliance Jio Infocomm Ltd (0.97 million). 

  • NXTDIGITAL’s revenue grows by 3.4% to Rs.234.82 crore in Q1

    NXTDIGITAL’s revenue grows by 3.4% to Rs.234.82 crore in Q1

    KOLKATA: NXTDIGITAL announced its results for the first quarter of the current financial year – a quarter that was significantly impacted by the Covid2019 pandemic. Against this challenging backdrop, the company continued its growth story, with revenues for Q1 standing at Rs. 234.82 crores.

    On a consolidated basis, revenues grew by 3.4 per cent on a sequential basis over the previous quarter and 2.7 per cent over the same quarter of the previous year. The company posted an EBIDTA of Rs.50.36 crore for the quarter; posting a growth of 99 per cent on a sequential basis over the previous quarter and 2.6 per cent on a year-on-year basis. 

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

    The board considered  a capital raising exercise in the agenda and has constituted a committee of directors to analyse and explore various options including Preferential Allotment, Rights Issue or such other means as the Board may consider appropriate for an amount up to Rs.500 crore.

    Performance Drivers

    NXTDIGITAL launched a series of key initiatives during Q1 to counter the challenges of the pandemic, while ensuring the safety of all its personnel, its franchisees and other ecosystem partners. The company looked to focus on three key aspects during the difficult quarter.

    Accelerated “digital payment” adoption by subscribers – the company worked actively to ensure nation-wide adoption of “digital” and “contactless” subscription collection models. Over 85 per cent of the franchisee base, today collects subscriptions from customers digitally, including using “Easebuzz”, a digital collection platform that NXTDIGITAL partnered with, even before the lockdown was implemented.

    Focused on content innovation to ensure subscribers remained connected and had access to their favorite content – launched innovative content packages like the “Vishesh Manorajan Pack” where customers could enjoy over 400 channels for a small fee; while facilitating a credit period for Local Cable Operators (LCOs) facing challenges to physically collect

    NXTDIGITAL Ltd. CEO Vynsley Fernandes reiterated that “As an essential service providing critical video and data connectivity, it was and is imperative to step up and deliver uninterrupted services to customers whilst ensuring, without exception, the safety of our personnel, our partners and the ecosystem. The performance in Q1 against the challenging backdrop is a reflection of those carefully thought out and implemented strategies, consistent innovation, and singular commitment to our customer base.”

    Vision for Growth

    NXTDIGITAL continues 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. The potential base for managed services stands at over 69 million cable TV customers today – comprising smaller independent and regional MSOs. A significant portion of these customers are in semi-urban, semi-rural and rural markets; where the company has a growing presence by virtue of being able to deliver digital services to any part of the country through its HITS platform.

    It is also developing innovative products and solutions to leverage the onset of the festival season and help customers derive maximum value. The “NXTGO” solution is an innovative dongle-type device that can be plugged into an OTT Set Top Box (STB) or an Android-based television and provide immediate access to “live” television channels – securely. The “NXTCONNECT” STB, a next-generation solution, is a single device for customers to access “live” television channels, OTT content, social and other apps, games, and much more.

    The company is also working with partners to launch a Cloud-based mobile app – allowing customers to gain easy access to local services in their community, managed by NXTDIGITAL LCOs. The objective is to build a strong ecosystem of local merchants around the LCO – connecting merchants to consumers, seamlessly; thereby facilitating a new revenue stream for its thousands of LCOs.

  • Meghbela Broadband partners with MyBox to bring Android TV experience

    Meghbela Broadband partners with MyBox to bring Android TV experience

    KOLKATA: Meghbela Broadband, one of eastern India’s largest multi system operators (MSOs) and internet service providers (ISPs), has launched Android TV services to its customers through MyBox Android TV box.

    Customers with six-twelve months commitment plans will get an offer on Android Box. The company has also partnered with leading banks to offer zero-interest EMI schemes for its valuable customers.

    Spearheading this movement ahead Meghbela Broadband directors Tapabrata Mukherjee, and Indranil Bhattacharya have taken a step forward to revolutionize the entertainment arena. The directors also mention that apart from business, their paramount concern has been the health and safety of their customers. Hence, an additional health insurance scheme covering Covid2019 is included with the plan.

    Meghbela Broadband has induced technology and entertainment, wherein retail broadband users get much more than a superfast and uninterrupted internet through Android Box which is all set to propel its consumer experience to new heights. The product offering includes the choice of 100 to 150 live TV channels via Meghbela app and other premium OTT apps like Amazon Prime Video, Zee5, Hungama, Addatimes, Hoichoi, BongoTV, Hubhopper, and many more.

  • MSOs see recovery in subscription collection post lockdown

    MSOs see recovery in subscription collection post lockdown

    KOLKATA: At the beginning of the Covid2019 crisis, distribution platform operators (DPOs) witnessed a sharp drop in collections from subscribers. After months of lockdown and controlled movements, major multi-system operators (MSOs) are seeing stability in their collections from June end. 

    According to a survey done by business intelligence enterprise Intin titled ‘Cable TV Fitness Check’ published in late May, the collection dropped for 84 per cent of cable operators, which was attributed to the unwillingness for digital payment and the lack of infrastructure, coupled with the social distancing norms.

    GTPL Hathway CATV business head and chief strategy officer Piyush Pankaj says that they have recovered the collections once the opening up started. Moreover, many new consumers have opted for digital payment. Hence, the payment collection issue has stabilised. Pankaj also added while 10-15 per cent of total collection dipped at the beginning of the pandemic, the scene has changed June onwards leading to 100 per cent recovery in the collection.

    Siti Networks Ltd CEO Anil Malhotra also echoes the same tone. According to him, the collection dropped by 20-25 per cent in March-April. While it recovered, there is still five to six per cent lag. However, he mentions that it is still facing an issue on the side of placement and marketing. 

    While UCN Cable Network director Jagdish Paliya states that two to three per cent recovery is still left, the collection is not difficult at this moment. There was 15 per cent drop in collection till May as the stringent lockdown made it difficult for last mile operators to reach the consumers.

    IndusInd Media & Communications Ltd (IMCL) CEO Vynsley Fernandes also reflects the positive sentiment of his peers in the industry. As everyone is adjusting to the new normal, some amount of stability has come, especially in terms of collection. He highlights another important trend that more consumers are paying digitally through payment gateways like Google Pay, PayTM, etc.

    Malhotra also agrees to the surge in digital payment from consumers but he notes that it is still not substantial despite a noticeable improvement. On the other hand, Pankaj says there has been an overwhelming surge in digital payment from the consumers’ side in the last four months. While it was 30-35 per cent pre-Covid2019 time, it has now reached 80-85 per cent. Metrocast Network Services promoter Nagesh Chhabria also says that it has converted more consumers into digital payment mode.

    With recovery, MSOs are likely to benefit from the growth in digital payments that they have witnessed during the pandemic.