ITV

Category: Cable TV

  • 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.

  • Video and Broadband Summit 2021: The 5G genie & the future of legacy distribution systems

    Video and Broadband Summit 2021: The 5G genie & the future of legacy distribution systems

    NEW DELHI: The video ecosystem has never had it better. Consumption, which skyrocketed during the early days of the Covid2019 pandemic, has found its level and that is much higher than it's ever been before. Cable TV, DTH, FTA, streaming services, wireless broadband and wired fixed broadband have all seen unimaginable uptake as digitisation has been accelerated with viewers and consumers being asked to be homebound for their safety.

    But in this period key questions have arisen: What is the future for legacy distribution systems for TV like cable TV, DTH, and FTA? With 5G knocking on our doors, will the traditional modes of delivery have the same relevance? How to capitalise on the booming user generated content space? These are some of the themes which will be discussed at the Video and Broadband Summit 2021.

    Running in its seventeenth year, the summit is going virtual this time and will bring together stalwarts from television, broadcasting, internet and distribution sectors to take a deep dive into the dynamic trends and vital issues prevalent in the sector at present.

    Over the last one-and-a-half-decades, VBS (earlier IDOS) has grown to become India’s definitive pat-TV and video distribution get together. However, this year’s summit is critical given that 2020 has witnessed some of the most fundamental changes in the industry – from the NTO 2.0 directive, a resurgent FTA segment, to the rise and rise of the over-the-top platforms.

    Key sessions in the summit will be:

    ·        2:30 – 2:40 pm: Introduction

    ·        2:40- 2:50 pm: Welcome Note by Anil Wanvari, founder, CEO & editor-in-chief of Indiantelevision.com

    ·        2:50 – 03:50 pm: The leaders peak laying out a profitable future

    ·        3:50 – 04:35 pm: Future proofing DPOs on video delivery solutions

    ·        4:35 – 4:55 pm: Virtual fireside chat with Anuj Jain, president – Jio Fiber

    ·        4:55 – 05:45 pm: Customer First!

    ·        05:45 – 05:50 pm: Closing Remarks

    To discuss all these relevant subjects, the summit has also lined up a distinguished panel of speakers. Among them are:

    ·        Amit Arora, President – Indiacast Media Distribution

    ·        Anuj Jain, President – Jio Fiber

    ·        Anil Malhotra, Chief Executive Officer- SITI Networks Pvt Ltd

    ·        Anil Wanwari, Founder, CEO & Editor-in-chief- IndianTelevision.com

    ·        Anurag Nigam, DGM Strategy- SITI Networks Pvt Ltd

    ·        Gurjeev Singh Kapoor, President TV Distribution -India & International – Star and Disney India

    ·        MN Vyas, Founder Director- Planetcast Media Services

    ·        Prem Ojha, Group Chief Executive Officer- Fastway Transmissions Pvt Ltd & Netplus Broadband

    ·        Prashant Chothani, Founder and Chief Executive Officer -Travelxp 4K

    ·        Raman Kalra, Partner- PwC India

    ·        RU Ediriwira, Group Chief Technology Officer- NXTDigital

    ·        Salil Thomas, Vice President & Head Technology- Asianet Satellite Communications Ltd

    ·        Sandeep Gupta, COO – Broadcasting Business-Shemaroo Entertainment Ltd.

    ·        Vynsley Fernandes, Media Group Chief Executive Officer, NXTDIGITAL Limited

    ·        Xavier Leclercq, Vice President Business Development- Broadpeak

    ·        Yatin Gupta, Senior Vice President – GTPL Hathway Ltd.

    Come join us for stimulating conversations, incisive insights and deliberations on the future roadmap of the industry at the Video and Broadband Summit 2021 on 5 March at 2:30 pm. Register now at https://www.indiantelevision.com/micro/vbsnew/index.html#

  • 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.

  • LCOs fire back at TRAI for ‘conduits’ remark before Bombay HC

    LCOs fire back at TRAI for ‘conduits’ remark before Bombay HC

    KOLKATA: Local Cable Operators (LCOs) appear to be agitated with industry regulator Telecom Regulatory Authority of India (TRAI) for portraying them as ‘conduits’ between the multi-system operators (MSOs) and subscribers. According to sources, TRAI has overlooked the role played by LCOs as last mile owners in a reply to ongoing litigation against NTO 2.0 in the Bombay high court.

    The Maharashtra Cable Operators Federation (MCOF) is of the view that it might lead to subscriber ownership transferred to the MSO. While the TRAI may indicate it is not concerned about LCO’s revenue, it also portrays LCOs as mere recharge operators in the mobile business.

    “TRAI has worsened our situation by making assertive statements going against our interests,” the MCOF said in a memo.

    In another statement, TRAI has conferred the credit for creating infrastructure to the MSOs. Despite putting lakhs of kilometres of a network together, the LCOs may stand to lose over Rs 1,00,000 crore worth of infrastructure due to the incorrect statement, the MCOF asserted.

    According to the federation, TRAI has overlooked the imbalance where benefits flow to broadcasters and MSOs at the cost of LCOs regardless of whether the subscriber pays more or less than pre-NTO days under compulsion to justify its judgemental errors. The unsubstantiated justification for reducing NCF on additional STB completely discounts the fact that most of the STBs are serviced by the LCO who incurs per visit costs that are not billed for.

    The federation has urged the operators to raise their voices and protest the statement to make TRAI file a revised affidavit before the high court.

  • 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. 

  • 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.

  • Airtel has perfected the LCO model for home broadband, says Gopal Vittal

    Airtel has perfected the LCO model for home broadband, says Gopal Vittal

    KOLKATA: Bharti Airtel (Airtel) is going head-to-head with archrival Jio in the home broadband segment by putting pedal to the metal on its expansion plans. While the company has seen record subscriber addition in September, it will keep focusing on LCO partnership model.

    In an earnings call after Q2 results, Bharti Airtel India and South Asia MD & CEO Gopal Vittal declared the company has “perfected” the LCO model. Vittal said that the model has done well after being tested for seven-eight months using several different approaches in a handful of different cities. Hence, the company is scaling up the model now and has rolled it out in 29 more towns in Q2.

    Under this model, the company has a standard toolkit where it is able to go out and actually work with the local cable operator in a particular town. Airtel gives them a revenue share for laying the last mile fibre and maintaining it. On the other hand, the router, the billing system, the plan and customer relationship is managed by Airtel.

    Read more news on Airtel

    Vittal has credited work from home, surge in streaming and online education for spurring growth in  the home broadband sector. He also mentioned that the price reduction in wired broadband sector would also help in overall growth. However, the impact of the price correction would be noticeable in the next quarter.

    In the quarter ended September 30, Airtel has added 129,000 new consumers along with a million homes passes, which is amongst the highest that it has seen in any quarter.

    Other than its core telecom business, Airtel has registered a gradual growth in the DTH business as well. “We are pleased with the progress that we have made on DTH – adding more than half a million customers. Primarily that is because we are able to synergise our distribution systems of mobility and DTH. Mobility has a distribution system that’s almost 25 times that of DTH. In places like Bihar, UP, Rajasthan, we are getting significant synergistic effort by eventually finding the right model to synergise but yet keeping enough focus on DTH business,” Vittal commented.

    Bharti Airtel India and South Asia chief financial officer Badal Bagri added that most of the acquisition in the DTH segment has come in the later part of July. While July, August are softer months in terms of recharges and addition, the company has seen the traction picking up in September. Bagri is optimistic that the trend will hold.

    A recent Crisil report stated that DTH broadcasting, which accounts for 37 per cent of total television (TV) subscribers in India, is set to buck the economic downturn and log a revenue growth of 400-600 basis points (bps) to Rs 22,000 crore this fiscal, because of healthy subscriber additions.

    Airtel has struck content partnerships with all major OTT platforms lately. Vittal acknowledged that content can be a differentiator for telecom players, while also mentioning that he has not seen any compelling evidence to suggest that general entertainment content is a strong differentiator. However, he added that topical events like sports work quite well.

  • 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.