ITV

Category: Multi System Operators

  • IndiaCast issues disconnection notice to IMCL

    IndiaCast issues disconnection notice to IMCL

    MUMBAI: Three weeks from now, viewers with cable connection of IndusInd Media and Communications (IMCL) might not be able to view a number of channels.

     

    IndiaCast has issued a public notice against the MSO regarding various channels of TV18, Eenadu Television and UTV Entertainment Television, for whom it acts as an agent. The notice reads that consumers in DAS notified areas of Delhi, Mumbai, Thane, Navi Mumbai, Ahmedabad, Baroda, Surat, Rajkot, Nasik, Nagpur, Pune, Bengaluru, Mysore, Hyderabad, Faridabad, Ghaziabad, Pimpri Chinchwad and Agra that all or some of the channels from the Indiacast group are likely to be disconnected. The notice was published in leading dailies across cities on 19 August.

     

    The reasons for the disconnection are that the MSO has failed to execute the reference interconnection offer, not paid dues to the broadcaster, demanding illegal and high carriage fees and have failed to furnish subscriber reports.

     

    According to a source, the agreement between IMCL and IndiaCast had expired on 31 March, post which the MSO did not execute a fresh agreement. It also stopped giving subscription revenues and subscriber report from April onwards.

     

    IMCL currently enjoys about 2 million digital subscribers in DAS I and DAS II areas. However, the source adds that the subscriber base is not in its best operational health and is yet demanding excessive carriage fees. While the earlier deal between the two had been on carriage fees, the source adds that it is revisiting its proposition now.

     

    The channels that will be disconnected include all of Network 18’s channels such as Colors, CNBC-TV18, CNBC Awaaz, CNN-IBN, IBN7, CNBC Bajaar, CNBC TV18 Prime HD, History TV19, History TV 18 HD, IBN Lokmat, MTV, MTV Indies, Rishtey, Nick, Vh1, Sonic, Comedy Central, Nick Junior, Colors HD, ETV Gujarati, ETV Marathi, ETV Bangla, ETV Kannada, ETV Oriya, ETV Uttar Pradesh Uttarakhand, ETV MP Chattishgarh, ETV Rajasthan, ETV Urdu, ETV News Kannada, ETV Bihar Jharkhand, ETV, ETV Andhra Pradesh, UTV Movies, UTV Stars, UTV World Movies, Disney Channel and Disney XD.

     

    Earlier this month, the MSO had put a scroll on its home page regarding disconnection of NDTV channels. Even then, a senior NDTV official had said that the MSO was demanding high carriage fees for a small subscriber base.

  • TV9 ends standoff with MSOs in Telangana

    TV9 ends standoff with MSOs in Telangana

    MUMBAI: It has been two months since multi system operators (MSOs) in Telangana decided to cut of signals from two news channels- TV9 and ABN Andhra Jyoti. Now, one of them has decided to take the initiative and end the ongoing war between MSOs and the channel.

     

    As per a report by the Hindu Business Line, the Associate Broadcasting Company (ABC) that is the majority promoter of TV9 is seeking to have a dialogue with MSOs to get the channel back on air. ABC has reached out to the MSOs to enter into an agreement. It has written to the Telangana State Federation of MSOs.

     

    The company has been on the lookout for a buyer for the channel as it wants to exit the business. However, this standoff between the MSOs and the channel apparently seems to have affected its valuation in the market. As per the report, ABC plans to exit within a month or two. Edelweiss is running the sale process. 

     

    In June, TV9 had allegedly telecast a programme that showed the Telangana government in a bad light due to which MSOs of the newly formed state decided to cut off signals to it. Meanwhile, the MSOs said that they would show the channels only if people asked for them.

     

    Information and Broadcasting Minister Prakash Javadekar had also asked the state government of Telangana to clarify queries regarding the blocking. He said that MSOs cannot censor channels on their own and if they did, the Ministry was empowered to take action against them.

     
  • Lower activation fees, new businesses make Den Networks post a subdued result, low PAT for Q1-2015

    Lower activation fees, new businesses make Den Networks post a subdued result, low PAT for Q1-2015

    BENGALURU: Den Networks Ltd (Den Networks) reported almost flat q-o-q result in Q1-2015. The company reported a slight drop in consolidated Total Income from Operations (TIO) in the current quarter at Rs 298.81 crore, down 1 per cent as compared to the Rs 301.86 crore in Q4-2014 and 11.2 per cent higher as compared to the Rs 268.70 crore in Q1-2014. Activation revenue dropped by Rs.47.5 crore in Q1-2015 as compared to the corresponding year ago quarter.

     

    The company says that Operational Revenue (excluding Activation Revenue) grew by 35.4 per cent y-o-y; subscription revenues grew by Rs 71.25 crores (82.7 per cent) y-o-y. The breakup of revenue from operations for Q1-2015 is: Subscription Rs 146 crore; placement revenue Rs 116 crore; digital activation revenue Rs 20 crore and other operating revenue of Rs 3 crore. Another breakup of revenue is revenue from cable Rs 284.6 crore, broadband revenue Rs 1 crore and soccer revenue-nil.

     

    Den Networks EBIDTA before other income in Q1-2015 fell 16.6 per cent to Rs 57.16 crore from Rs 68.57 crore in Q4-2014 and was 29.4 per cent lower than the Rs 80.94 crore in Q1-2014. The decline of Rs 23.78 crore (29.4 per cent) y-o-y comprises largely of losses on account of launch of broadband and soccer (Rs 12 crore) and lower activation revenue in cable business by Rs 42.75 crores.

     

    Notes:  100,00,000 = 100 lakhs = 10 million = 1 crore

     

    The company’s PAT in Q1-2015 at Rs 1.12 crore (0.4 per cent of TIO) which was about one ninth of the Rs 10.05 crore (3.3 per cent of TIO) in the immediate trailing quarter and also about one ninth of the Rs 10.15 crore (3.8 per cent of TIO) in Q1-2014.

     

    Let us look at the other numbers reported by Den Networks for Q1-2015

     

    Den Networks total expenditure in Q1-2015 at Rs 284.93 crore (95.4 per cent of TIO) was 5.9 per cent more than the Rs 269.18 crore (89.2 per cent of TIO) in Q4-2014 and was 24 per cent more than the Rs 229.69 crore (31.6 per cent of TIO) in the corresponding year ago quarter.

     

    One of the major components of total expenditure is content cost in the case of Den Networks. The company paid Rs 106.42 crore (35.6 per cent of TIO) towards this expense head in Q1-2015, which was 5.5 per cent more than the Rs 100.85 crore (33.4 per cent of TIO) in Q4-2014 and was 25.2 per cent more than the Rs 85.01 crore (31.6 per cent of TIO) in Q1-2014.

     

    Another major expense head is operational, administrative and other costs (admin cost). Den Networks admin cost in Q1-2015 at Rs 106.77 crore (35.7 per cent of TIO) which was 4.8 per cent more than the Rs 101.88 crore (33.8 per cent of TIO) and was 26.5 per cent more than the Rs 84.41 crore (31.4 per cent of TIO) in Q1-2014.

     

    Based on the new accounting norms for calculating depreciation, the net effect is a higher depreciation of Rs 1.48 crore, which has resulted in a lower PAT in the current quarter.

     

    The company says that it has deployed 2.7 lakh set-top boxes in the current quarter.

     

    Den, through its wholly owned subsidiary – Den Soccer Pvt Ltd, has been awarded the team rights for Delhi – its home town. The team is named ‘Delhi Dynamos FC’. ISL is founded by IMG Reliance and Rupert Murdoch’s Star Group, under the aegis of All India Football Federation (AIFF). The inaugural season of the League is scheduled to begin in October, 2014.

     

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  • Application of Grant Investrade for HITS licence ‘under process’: Javadekar

    Application of Grant Investrade for HITS licence ‘under process’: Javadekar

    NEW DELHI: The application by Grant Investrade for permission to provide headend-in-the-sky services is ‘under process’, Lok Sabha was told today.

    Information and Broadcasting Minister Prakash Javadekar said in reply to a question that so far only the Noida Software Technology Park Ltd (NSTPL) has the licence to operate HITS services.

    Based on the recommendations of the Telecom Regulatory Authority of India (TRAI), the Government had in 2009 permitted HITS services, under which only companies registered in the country are eligible to launch the services.

    Grant Investrade, a wholly-owned subsidiary of Hinduja Ventures, had applied for a licence for HITS in November 2012.

     

    Under the guidelines, it has to pay a licence fee of Rs 10 crore before it gets the HITS licence. As reported earlier by indiantelevision.com, the company has made the payment.

    Grant Investrade will also have to seek two more clearances – one from the Network Operation Coordination Centre for the satellite to be used for the HITS services and second from the Wireless Planning and Coordination wing of the Ministry of Communications.

     

    Click here to read the previous story

  • Q1-2015: Siti Cable reports 47.5 per cent y-o-y op income growth, triple subscription rev

    Q1-2015: Siti Cable reports 47.5 per cent y-o-y op income growth, triple subscription rev

    BENGALURU: Essel group’s Subhash Chandra led Siti Cable Network Limited (Siti Cable) reported a 47.5 per cent jump in consolidated Total income from operations (TIO) in Q1-2015 at Rs 209.02 crore as compared to the Rs 141.74 crore in Q1-2014, but 10.4 per cent lower than the Rs 233.34 crore in Q4-2014. Overall, total revenue for the current quarter at Rs 211 crore was 46 per cent more than the Rs 144.1 crore reported in the year ago quarter. Siti Cable reported subscription revenue at Rs 105.7 crore as compared to Rs 32.1 crore for the corresponding quarter of last fiscal and hence recorded a growth of 229 per cent. 

     

    The company’s loss was higher in Q1-2015 by 10 per cent at Rs 31.67 crore in Q1-2015 as compared to the Rs 28.77 crore in Q1-2014 and was higher by 51.8 per cent from the loss of Rs 20.86 crore reported in Q4-2014. However, the company’s operating profit (EBIDTA) in Q1-2015 at Rs 36.3 crore (17.4 per cent of TIO) was 16.3 per cent more y-o-y as compared to the Rs 31.2 crore (22 per cent of TIO) and 30.1 per cent more than the Rs 27.9 crore (12 per cent of TIO) in Q4-2014. 

     

    Note: (1) 100,00,000 = 100 Lakhs = 10 million = 1 crore.

     

    (2) The figures mentioned in the report are consolidated unless stated otherwise. 

     

    Siti Cable chairman Chandra said, “The performance during the quarter reflects the investment that Siti is making to grow its business and market share. This has been accompanied by a strong improvement in both top line and bottom line growth of the company during the quarter due to continued emphasis on providing quality services to our consumers and superior technological support to our business partners.” 

     

    Let us look at the other numbers for Q1-2015 reported by Siti Cable 

     

    Total expenditure in Q1-2015 was 47.8 per cent higher at Rs 203.76 crore (97.5 per cent of TIO) as compared to the Rs 137.89 crore (97.3 per cent of TIO) in Q1-2014 and 12.6 per cent lower than the Rs 233.07 crore (99.9 per cent of TIO) in Q4-2014. 

     

    The company’s carriage sharing, pay channel and related cost (pay channel cost) in Q1-2015 at Rs 125.55 crore (60.1 per cent of TIO) was more than double (2.03 times) the Rs 61.8 crore (43.60 per cent of TIO) in Q1-2014 and 1.1 per cent more than the Rs 124.16 crore (53.21 per cent of TIO) in Q4-2014. 

     

    Y-o-y the company’s finance cost was 16.2 per cent higher at Rs 30.37 crore (14.5 per cent of TIO) in Q1-2015 as compared to the Rs 26.14 (18.4 per cent of TIO) crore, while q-o-q it was 2.8 per cent lower than Rs 31.24 crore (13.4 per cent of TIO).

     

    The company’s other expense at Rs 38.05 crore (18.2 per cent of TIO) was 4.7 per cent lower than the Rs 39.19 crore in Q1-2014 and almost half (49.5 per cent less) than the Rs 75.93 crore (32.31 per cent of TIO) in Q4-2014. 

     

    Siti Cable CEO V D Wadhwa said, “We continue to focus on improvement in quality of our services to our viewers and improvement in our subscription revenues.  The results for the quarter are reflective of these efforts. The subscriber revenue during the quarter has shown robust growth of 229 per cent and with the starting of package billing in DAS II cities and likely roll out of digitization in phase III & IV, it is set to further improve in the coming quarters.” 

     

    Additional Note: (1) In view of the mandatory digital addressable system (‘DAS’) regulation announced by the Ministry of Information and Broadcasting, Government of India, digitization of cable networks has been implemented in the cities notified for Phase 1 and Phase 2 effective November 1, 2012 and April 1, 2013 respectively. Owing to the initial delays in implementation of DAS in phase 1 cities and challenges faced by all the Multi-System Operators (MSOs) during transition from analogue business to DAS, the company says that it is in the process of executing contracts with the subscribers and implementation of revenue sharing contracts entered into with the local cable operators (LCOs). 

     

    Accordingly, the Company has invoiced and recognized subscription revenue net of sharing of revenue with the LCOs under the new DAS regime amounting to Rs. 13,497.4 lakhs (standalone Rs.9,605.34 lakhs) for the quarter ended June 30, 2014 respectively based on certain estimates derived from market trends and ongoing discussion with the LCOs. The company says that its management is of the view that the execution/implementation of such contracts will not have a significant impact on the subscription revenue for the current period. 

     

    (2) During the quarter, the Company says that it has revised the useful lives of its fixed assets to comply with the requirements as mentioned under Schedule II of the Companies Act, 2013. Accordingly, the depreciation expense for the quarter ended June 30, 2014 is higher by Rs. 458.18 lakhs (standalone financial Rs. 406.55 lakhs). Similarly, in case of  fixed assets whose life has been completed as on March 31, 2014, the carrying value (net of residual value) of those assets accounting to Rs. 1,068.84 lakhs (amounting of  Rs. 167.44 lakhs in standalone financial) has been adjusted with the opening balances of retained earnings i.e. deficit in statement of profit and loss.

     

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  • Hathway reports lower income, lower loss for Q1-2015

    Hathway reports lower income, lower loss for Q1-2015

    BENGALURU:  The multi system operator (MSO), Hathway Cable and Datacom (Hathway), reported a 14.5 per cent drop in standalone operating income to Rs 250.22 crore in Q1-2015 as compared to the Rs 292.72 crore in Q4-2014, but 7.6 per cent more than the Rs 232.65 crore in Q1-2014.

     

    The company has been reporting loss for the past few quarters. In Q1-2015, Hathway reported loss of Rs 0.93 crore as compared to a loss of Rs 42.27 crore in Q4-2014 and a profit after tax of Rs 5.32 crore in Q1-2014.

     

    Based on the figures submitted by Hathway, the company’s EBIDTA in Q1-2015 works out to Rs 43.87 crore (17.5 per cent of TIO). Comparative figures for Q4-2014 are Rs 40.70 crore (13.9 per cent of TIO) and Rs 76.09 crore (32.7 per cent of TIO).

     

    Let us look at the other Q1-2015 numbers reported by Hathway

     

    Total expense in Q1-2015 at Rs 254.10 crore (107.1 per cent of TIO) was 19 per cent lower than the Rs 313.53 crore in Q4-2014 (107.1 per cent of IO) in Q4-2014 and 28.3 per cent more than the Rs 198.1 crore in Q1-2014.

     

    Hathway’s pay channel cost at Rs 85.81 crore (34.3 per cent of TIO) in Q1-2015 was 25.7 per cent lower than the Rs 115.41 crore (39.4 per cent of TIO) in Q4-2014 and 46.8 per cent more than the Rs 58.45 crore (17.9 per cent of TIO) in Q1-2014.

     

    Hathway reported other income of Rs 2.05 crore in Q1-2015; Rs 2.54 crore in Q4-2014 and Rs 0.95 crore in Q1-2014. The company reported forex gain of Rs 1.58 crore in Q1-2015; forex gain of Rs 4.71 crore in Q4-2014 and a forex loss of Rs 8.32 crore in Q1-2014.

     

    The company’s finance costs have gone up in Q1-2015, both in terms of actual amounts and in terms of percentage of TIO. In Q1-2015, finance cost at Rs 29.17 crore (11.7 per cent of TIO) was 18 per cent more than the Rs 24.71 crore (8.4 per cent of TIO) in Q4-2014 and 34.9 per cent more than the Rs 21.61 crore (9.3 per cent of TIO) in Q1-2014.

     

    Once the company’s finance costs were accounted for, its loss would have been wider in Q1-2015, but for a change in accounting practices, which after providing for doubtful advances/investments/receivables from entities under control/ significant control have resulted in exceptional item of Rs 28.87 crore and reduced the loss accordingly.

     

    As mentioned in our report last week, Hathway got board approval to raise Rs 300.80 crore through a preferential allotment to two foreign institutional investors – the SmallCapWorld Fund (SWF) and American Funds Insurance Series. While it is proposing to allot  70,50,000 shares to SmallCapWorld Fund, American Funds Insurance is expected to mop up 23,50,000 equity shares.

     

  • Telangana MSOs continue to boycott two news channels

    Telangana MSOs continue to boycott two news channels

    MUMBAI: The Telangana Multiple System Operators (MSOs) on 11 August 2014 decided to continue blockade of TV9 and ABN Andhra Jyothi news channels, a mediahouse reported.

     

    Federation of Telangana MSOs’ president M Subhash Reddy, charged the channels of telecasting objectionable content that hurt the sentiments of Telangana people and said, “Even the Telangana state assembly took cognisance of the objectionable content.”

     

    The Federation maintained that they had presented their case to the High Court and responded to a notice served by the Telecom Regulatory Authority of India (TRAI). “The TRAI sought explanation on why we had stopped the two channels without the mandatory 15-day notice and we explained the reasons. There was pressure on us from the Telangana people and we had to act,” the president of the federation said.

     

    At a meeting attended by district representatives, the Federation of Telangana MSOs said they are planning to send a delegation to the I&B minister to explain to him the events that led to the cable operators blocking these two news channels.

     

    Reddy also added that since the channels are not doing anything to find a resolution to the problem, the MSOs will stick to their decision of blocking the channels.

  • Arasu to introduce broadband service

    Arasu to introduce broadband service

    MUMBAI: The state-run Tamil Nadu Arasu Cable TV Corporation has promised to offer broadband and other internet services. Making an announcement in the assembly under rule 110, Tamil Nadu chief minister J Jayalalithaa said that Arasu Cable was providing ‘high quality’ cable TV service to the people of the state, for Rs 70 per month.

     

    “Through cable operators, it (Tamil Nadu Arasu Cable Corporation) will provide broadband service at low prices. This will be offered by joining hands with those who have broadband licences,” she said while also announcing a new building worth Rs 40 crore for Tami Nadu State Data Centre which will have a space of 5,000 square feet space.

     

    A Near Line Disaster Recovery Centre will be established at a cost of Rs 5 crore to preserve and retrieve government data and an e-mail group will be created at a cost of Rs 1 crore for government officials to ensure safe and fast communication, said the chief minister.

     

    Jayalalithaa also said that cloud services and web-hosting services will be provided to students and young entrepreneurs at a low cost and Rs 50 lakh will be earmarked for this and an internet-based encyclopedia of Tamil arts and culture.

  • Hathway Bhawani posts lower revenue, lower loss for Q1-2015

    Hathway Bhawani posts lower revenue, lower loss for Q1-2015

    BENGALURU: Hathway Bhawani Cabeltel and Datacom Limited (HBC&DL) reported loss of Rs 65.55 lakh for the current quarter as compared to the Rs 99.63 lakh loss in Q4-2014 and the Rs 83.2 lakh loss in Q1-2014.

     

    HBC&DL reported 4 per cent lower total operating revenue (TIO) in Q1-2015 at Rs 3.89 crore as compared to the Rs 4.05 crore in the immediate trailing quarter and was 3.8 per cent lower than the Rs 4.04 crore in the year ago quarter.

     

    Note: Rs 100,00,000 = 100 lakhs = 10 million = 1 crore

     

    HBC&DL reported 10.9 per cent lower expenditure in Q1-2014 at Rs 4.51 crore as compared to the Rs 5.06 crore in Q4-2014 and 4.9 per cent lower than the Rs 4.74 crore in Q1-2014.

     

    EBIDTA in Q1-2015 was negative at Rs 0.42 crore as compared to the negative Rs 0.77 crore in Q4-2014 and the negative Rs 0.51 crore in Q1-2014.

     

    The company paid Rs 1.62 crore (41.7 per cent of TIO) in Q1-2015, which was 87.4 per cent higher than the Rs 0.89 crore (21.4 per cent of TIO) in Q4-2014 and 44.3 per cent lower than the Rs 2.91 crore (72 per cent of TIO) in Q4-2014.

     

    The company has informed the bourses that subject to shareholders’ approval, it intends to issue up to 9 lakh fully paid up equity shares of face value of Rs 10 to Hathway Cable and Datacom at a price of Rs 11 per equity share aggregating Rs 99,00,000.

     

    HBC&DL’s equity share price went up 3.9 per cent yesterday (11 August). The share opened at Rs 10.45 and closed at Rs 10.39, with 512 shares changing hands. The earlier closing price of the share was Rs 10. The 30 day average volume of shares was 317. The book value of each equity share was Rs 2.19. The P/E ratio of the industry that HBC&DL is involved in is 32.84.

     

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  • MSO in Belgaum booked for illegal piracy of Zee TV signals

    MSO in Belgaum booked for illegal piracy of Zee TV signals

    NEW DELHI: Karnataka police has registered a first information report (FIR) against Belgaum’s only multi-system operator, Riddhi Vision which is a joint venture of InCable, for illegal transmission of copyrighted content.

     

    The action was taken on a written complaint filed by Cable Star Copyrights Investigations, who is the distributor for Cable TV Rights all over India of Zee Entertainment Enterprises Limited (Zeel). 

     

    Karnataka police took cognizance under Section 37, 51, 52(A), 63, 68(A) of the Copyright Act for telecasting of the Hindi film ‘Khalnayak’ starring Sanjay Dutt and Madhuri Dixit on 20 July evening in Belgaum. The FIR was filed against the managing director and other directors of Riddhi Vision by Dr Chandragupt, superintendent of police in Belgaum. A spokesperson for Cable Star Copyrights Investigations told indiantelevision.com that the pirated content for which the rights were with Zee was being shown on the local channel run by the MSO.  

     

    The spokesperson added, “It has been a practice of various cable operators to run content and specially movies without obtaining permission from the content owners, and the industry has been demanding strict action.”

     

    He said Cable Star Copyrights Investigations is working for anti-piracy and distribution of Zee and other similar companies and has been a crusader against such piracy for several years and have previously lodged many such FIRs in various states.

     

    He said, “Such blatant transmission causes immense loss of revenue to the content owners and government. Cable Star Copyrights Investigations has also lodged many complaints against big cable operators in Maharashtra and other states, in which they are pressing for swift and strict action. Such police action would definitely be a right step towards stopping the menace of piracy, which has been the bane of entertainment industry.”