ITV

Category: Cable TV

  • Rajan Raheja resigns as non-exec director of Hathway Cable and Datacom

    Rajan Raheja resigns as non-exec director of Hathway Cable and Datacom

    MUMBAI: Billionaire industrialist Rajan Raheja has resigned as non-executive director of Hathway Cable and Datacom Ltd on 30 January. A pioneer in the Indian cable TV industry, he has been widely credited for Hathway’s expansion.

    The resignation came in accordance with the agreement between Hathway and Jio Content Distribution Holdings Private Ltd, Jio Internet Distribution Holdings Private Ltd, Jio Cable and Broadband Holdings Private Ltd and the existing promoters of the company.

    Last October, Mukesh Ambani’s Reliance Industries Ltd (RIL) acquired majority stake in two leading cable TV broadband companies – Hathway Cable and Datacom and Den Networks. “We are glad to join hands with Rajan Raheja (Hathway promoter) and Sameer Manchanda (DEN), two of the pioneers in MSO industry,” Ambani said in a statement after the acquisition.

    After Jio launched its flagship fibre-to-home service Jio GigaFiber, the company asserted that it is open to work with local cable operators. Many experts looked at it optimistically terming the deal “win-win” situation for all the parties.

  • Siti Networks in Kolkata to migrate pay channels to new TRAI tariff scheme in phased manner

    Siti Networks in Kolkata to migrate pay channels to new TRAI tariff scheme in phased manner

    MUMBAI: Essel group promoted multi-system operator (MSO) Siti Network has planned to migrate Pay TV channels in Kolkata in a phased manner to get non-compliant subscribers to transition to the new TRAI tariff regime. While around 80 per cent of the MSO's 14 lakh subscribers were still to pick their pay channels from an a-la-carte list.

    According to a report from The Telegraph, the MSO will start the process before the grace period given by Calcutta High Court in a recent order.

    “About 20 per cent of our customers have filled in forms online or offline, specifying the channels they want to watch. We have shifted most of them to the channels of their choice. We will now start shifting the others who have not exercised their choices to the new system by withdrawing their pay channels. They will continue to get the free-to-air channels,” Siti Cable director Suresh Sethia said.

    If there is chaos after the migration, the company might start moving some of the subscribers to combinations closest to their current packs. According to the report, another MSO is expected to move subscribers to a combination of channels that can be accommodated within the pricing brackets they are currently in.

    “Since most pay channels are now priced higher than they were in the previous system, they will obviously miss out on some, if not several. The only way out is for them to register their choices immediately,” an official was quoted by The Telegraph.

    Earlier Telecom Regulatory Authority of India (TRAI) extended the deadline for consumer migration to new plans till January 31. Despite the additional month, several MSOs complained that the majority of subscribers had not responded to the grace period making transition very difficult.

    80 cable operators from the city also filed a petition against the order in Calcutta High Court and initially got a stay too. But the high court vacated the stay.

  • NDMC is first civic body to provide HD cable TV service

    NDMC is first civic body to provide HD cable TV service

    MUMBAI: New Delhi Municipal Corporation (NDMC) has become the first civic body to provide high-definition cable television services to residents of Lutyens' Delhi from mid-February. The municipal body has entered into a partnership with Mahanagar Telephone Nigam Ltd and telecom company Oneott Intertainment to provide the service.

    According to media reports, NDMC will provide HD satellite TV service through the underground optic fibre network. In select NDMC areas, MTNL is providing high-speed internet and voice facility through the FTTH technology. Apart from over-the-top services like Netflix, YouTube, television channels can now be accessed also. However, users have to take the MTNL-NDMC internet connection to enjoy all the services together on any screen.

    "We can't offer rates below those decided by the Telecom Authority of India (TRAI) for implementation from 1 February, but we assure users they will be marginally over that," MTNL CMD Pravin Kumar Purwar said but he assured the cost would be "reasonable”.

    The headend-in-the-sky (HITS) technology is also being employed along with FTTH to enable a smooth service which would not be hampered by sun or rain outage. Along with signing a MoU with MTNL, the civic body signed an agreement with leading HITS service provider Nxt Digital too.

    Earlier in 2017, NDMC entered into a partnership with MTNL to offer internet connectivity through Wi-Fi service in public places and FTTH services. NDMC chairman Naresh Kumar said that success of the earlier project encouraged them to utilise the same facility for providing cable TV services.

    “By 15 February, we will start publicising the service and holding camps to invite applications from subscribers for commercial connections,” he added. The services will be initially offered in Connaught Place and its neighbourhood on a pilot basis.

  • Hathway back in black in Q3 2019

    Hathway back in black in Q3 2019

    BENGALURU: Broadband internet services provider Hathway Cable & Datacom Limited reported a standalone profit after tax and standalone net comprehensive income of Rs 6.44 crore and Rs 6.27 crore respectively for the quarter ended 31 December 2018 (Q3-2019, quarter or period under review). The company had reported a loss of Rs 5.90 crore in the previous quarter (Q2-2019) due to higher other expenses and foreign exchange loss. In Q3-2019, Hathway has reported a foreign exchange gain of Rs 3.07 crore as compared to a forex gain of Rs 4.32 crore in Q3 2018 and a forex loss of Rs 7.21 crore in Q2 2019.

    Hathway’s standalone operational revenue for the period under review declined 2.7 per cent y-o-y to Rs 134.85 crore from Rs 138.65 crore, but was 3.3 per cent higher q-o-q than the Rs 130.55 crore in Q2-2019. Standalone total income in Q3-2019 was slightly lower y-o-y (lower by 0.8 per cent) at Rs 143.41 crore as compared to Rs 144.57 crore in Q3 2018. Though the company’s standalone operating profit EBITDA) for Q3 2019 declined 14.6 per cent y-o-y  to Rs 51.30 crore (38 per cent of operating revenue) from Rs 60.06 crore (43.3 per cent of operating revenue), it increased 10.1 per cent q-o-q from Rs 46.58 crore (35.7 per cent of operating revenue).

    Let us look at the other numbers reported by Hathway

    Standalone total expenditure in Q3 2019 was Rs 139.67 crore or 101.6 per cent of operational revenue as compared to Rs 120.70 crore or 87.1 per cent of operational revenue in Q3 2018 and Rs 144.08 crore or 110.4 per cent of total income in Q2 2019. Standalone operating expenses in Q3 2019 was 0.6 per cent higher y-o-y at Rs 33.27 crore as compared to Rs 33.06 crore and was 7 per cent higher q-o-q than Rs 31.10 crore. 

    Standalone employee benefits expense for the quarter was 19.6 per cent higher y-o-y at Rs 13.55 crore as compared to Rs 11.33 crore and was 20.0 per cent higher q-0-q than Rs 11.29 crore. Standalone finance costs in Q3 2019 at Rs 20.57 crore were 17.3 per cent higher y-o-y than Rs 17.54 crore but were 36.2 per cent lower q-o-q than Rs 32.22 crore. Other expenses at in Q3 2019 at Rs 36.73 crore were 7.4 per cent higher y-o-y than Rs 34.20 crore, but were 11.7 per cent lower q-o-q than the Rs 41.48 crores.

    Takeover by Jio

    Two days ago, Hathway had informed the Stock Exchange – “Further to our intimations dated 17 October 2018 and 14 November 2018 with respect to boards' and shareholders' approval for raising of funds up to Rs 2940,00,03,500 (Rupees two thousand nine hundred and forty crores three thousand and five hundred only) through preferential allotment to Jio Content Distribution Holdings Pvt Ltd, Jio Internet Distribution Holdings Pvt Ltd and Jio Cable and Broadband Holdings Pvt Ltd (the "Proposed Investors"), please be informed that the proposed investors have received the approval from the Competition Commission of India on January 21 2019.”

    Hathway had also submitted a copy of the Letter of Offer dated 21 January 2019 to the Stock exchanges.

  • RIL subsidiary gets Competition Commission nod for Den, Hathway acquisition

    RIL subsidiary gets Competition Commission nod for Den, Hathway acquisition

    BENGALURU: The Mukesh Dhirubhai Ambani led Reliance Industries Limited has informed the bourses that permission from the Competition Commission of India for acquisition of shares and control of Den Networks and Hathway Cable & Datacom  (Hathway) by six SPV 100 percent owned and controlled by Digital Media Distribution Trust of which Reliance Content Distribution Limited, a wholly owned subsidiary of Reliance Industries Limited, is the sole beneficiary, has been received on 21 January 2019.

    The approval will enable subscription to the preferential issue of equity shares by Den and Hathway and purchase of equity shares of Den from the existing promoters, as specified in the disclosure dated October 18, 2018.

    RIL is now waiting for Securities and Exchange Board of India (SEBI) comments on the draft letter for mandatory open offer to shareholders of (a) Den; (b) GTPL Hathway Limited; and (c) Hathway Bhawani Cabletel and Datacom Limited,

    Yesterday, Den Networks had informed the Stock Exchanges that (i) Jio Futuristic Digital Holdings Private Limited, (ii) Jio Digital Distribution Holdings Private Limited and (iii) Jio Television Distribution Holdings Private Limited (collectively referred as “investors“) have received the above referred approval.

    Also, yesterday, Hathway had informed the Stock Exchanges – “Further to our intimations dated 17th October, 2018 and 14th November, 2018 with respect to Boards' and Shareholders' approval for raising of funds up to Rs. 2940,00,03,500 (Rupees Two Thousand Nine Hundred and Forty Crores Three Thousand and Five Hundred only) through preferential allotment to Jio Content Distribution Holdings Private Limited, Jio Internet Distribution Holdings Private Limited and Jio Cable and Broadband Holdings Private Limited (the "Proposed Investors"), please be informed that the Proposed Investors have received the approval from the Competition Commission of India on January 21, 2019.”

    Hathway had also submitted a copy of the Letter of Offer dated 21 January 2019 to Stock exchanges.

  • Karnataka may face day-long cable TV blackout on 24 January

    Karnataka may face day-long cable TV blackout on 24 January

    MUMBAI: Karnataka cable TV users are likely to face a blackout of TV channels on 24 January if the Karnataka State Cable Television Operators Association goes ahead with its intention to protest against the Telecom Regulatory Authority of India’s (TRAI) new tariff order. The state has 60 to 70 lakh cable channel subscribers.

    The association has decided to black out cable channels across the state on January 24 from 6 am to 10 pm. According to a report in The Hindu, the channels will be switched off by the respective associations.

    As quoted in the report, VS Patrick Raju, president of the association said the TRAI decision is regressive. He also added it would go against the interests of both the channel subscribers and the operators.

    “TRAI has come out with the new regulations without taking operators into consideration. At present, the operators are giving 450 channels for Rs 300 and if the new rules come into place, the subscriber will end up paying Rs 1,500 for same number of channels as the channel rate ranges from Rs 1 to Rs 19. In addition, a provision has been made to charge 18 per cent. The TRAI regulation is a regressive act and new rules are introduced just to favour big corporate bodies,” he added.

    Cable operators across India are going against the new regime and this Karnataka incident is not any different. Many experts in the cable industry have spoken against the TRAI formula that dictates revenue sharing model.

  • Den reports lower numbers for third quarter

    Den reports lower numbers for third quarter

    BENGALURU: Indian cable distribution network and broadband internet services (broadband) provider Den Networks Ltd reported 6 per cent drop in consolidated operating revenue numbers for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y, Q3 2018).

    Den Network’s operating profit (EBITDA) declined 39 per cent y-o-y during the period under review to Rs 48.10 crore (15.6 percent of operating revenue) from Rs 78.83 crore (24 per cent of operating revenue) in Q3 2018.

    Den reported a net loss of Rs 31.21 crore in Q3 2019 as compared to a profit after tax of Rs 1.73 crore in Q3 2018.The company reported total comprehensive loss (TCL) of Rs 31.06 crore as compared to total comprehensive income of Rs 1.31 crore in Q3 2018.

    Segment numbers

    Den has two segments – cable distribution networks (Cable) and broadband. Both segments reported lower y-o-y revenues and operating loss for the quarter under review.

    Cable segment revenue reduced 6.1 per cent y-o-y in Q3 2019 to Rs 291.59 crore from Rs 310.50 crore in Q3 2018. Den reported that the segment had an operating loss of Rs 8.95 crore as compared to an operating profit of Rs 25.20 crore in Q3 2018.

    Den Networks reported 5.1 per cent y-o-y decline in operating revenue for its broadband segment in Q3 2019 at Rs 16.82 crore as compared to Rs 17.72 crore in Q2 2018. The segment’s operating loss reduced to Rs 6.60 crore in Q3 2019 from an operating loss of Rs 7.29 crore.

    Let us look at the numbers reported by Den Networks for Q1 2019

    Den Networks consolidated revenue from operations in Q3 2019 was Rs 308.41 crore, 6 per cent lower than the Rs 328.22 crore in Q3 2018. Consolidated total revenue including consolidated other income declined 6.4 per cent y-o-y in Q3 2019 to Rs 313.32 crore from Rs 334.92 crore in Q3 2018.

    Consolidated total expenditure for the quarter under review increased 3.9 per cent y-o-y in Q3 2019 to Rs 337.84 crore (109.5 percent of operating revenue) from Rs 325.20 crore (99.1 per cent of operating revenue) in the corresponding quarter of the previous year.

    Consolidated content cost increased 10.5 per cent y-o-y in Q3 2019 to Rs 148.65 crore (48.2 per cent of operating revenue) as compared to Rs 134.56 crore (41 per cent of operating revenue) in Q3 2018. Consolidated placement fees reduced 9.3 per cent y-o-y in Q3 2019 to Rs 9.99 crore (3.2 per cent of operating revenue) from Rs 12.48 crore (3.4 per cent of operating revenue) in Q3 2018.

    Den Networks consolidated employee benefits expense during the period under review declined 7.5 per cent y-o-y to Rs 23.80 crore (7.7 per cent of operating revenue) from Rs 25.73 crore (7.8 per cent of operating revenue) in Q3 2018. Consolidated other expenses in Q3 2019 increased 1.6 per cent y-o-y to Rs 77.87 crore (25.2 per cent of operating revenue) in Q3 2019 from Rs 76.62 crore (23.3 per cent of operating revenue) in the corresponding quarter of the previous year.

    Company speak

    Den CEO SN Sharma said, “Cable subscription ARPU is consistent with respect to the previous quarter which stood at Rs 96 per box (including tax).

    "TRAI tariff order implementation, a potential gamechanger in the cable industry, is underway wherein we have taken host of initiatives and strengthened our internal processes including IT systems. In order to migrate to the new tariff order, consumer has various options to exercise his choice of channels through our consumer / LCO mobile applications and web portal.

    "Extensive LCO/distributor awareness programme are under progress wherein the partners are explained in clear terms the benefits they would get in the overall value chain. Prepaid system for cable subscription partners, the most preferred billingoption under the new tariff order, has been successfully rolled out during the quarter in select markets.”  

    Strategic investments in Den by Reliance Industries

    On 17 October 2018, the Mukesh Ambani led Reliance Industries Ltd reported to the bourses that it has decided to make strategic investments thought a primary investment of Rs 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs 245 crore from the existing promoters for a 66 percent stake in Den. Reliance also said that it would make a primary investment of Rs 2,940 crore through a preferential issue under SEBI regulations for a 51.3 per cent stake in Hathway Cable and Datacom Ltd (Hathway) of the Rajan Raheja group.

  • Thailand’s largest pay-TV operator TrueVisions extends partnership with Synamedia

    Thailand’s largest pay-TV operator TrueVisions extends partnership with Synamedia

    LONDON and SINGAPORE, 15 January 2019 – Synamedia, the largest independent video software provider, today announced it has extended its seven-year partnership with TrueVisions, Thailand’s leading pay-TV operator.

    As part of the new multi-year contract, Synamedia VideoGuard will protect and secure TrueVisions’ investments in live sports, news, entertainment and other premium content delivered to its 3.9 million cable and satellite subscribers. The deal ensures that TrueVisions can deliver new premium, blended broadcast/IP services to customers without compromising on security. In 2019, TrueVisions will roll out an Android TV set-top box which will also be protected by VideoGuard.

    Synamedia is the market leader in video security solutions with the industry’s longest and strongest track record safeguarding pay-TV operators’ revenues against pay-TV piracy. Drawing on its 30-year heritage, Synamedia’s continuing relationship with TrueVisions will involve working on new security solutions to fight piracy and protect revenue streams.

    Dr. Jen, Procurement Director of True Group of Companies, said, “We have benefitted from VideoGuard’s industry-leading security since 2011 to secure our investments in premium content. By extending our partnership with Synamedia we are protecting our brand with the world’s leading set-top box security solution and safeguarding subsequent potential revenues as we look to enhance and enrich our subscribers’ viewing experiences with new blended broadcast/IP services.”

    Sue Couto, Senior Vice President and General Manager, Asia Pacific for Synamedia, added, “Being the market-leader in Thailand, it is vital that TrueVisions’ video content and services are secured against all types of threats.  Synamedia is committed to stamping out piracy and will continue to work closely with TrueVisions to maximise their current revenues while also developing new solutions and services that will delight their customers and open up additional revenue streams.”

  • SITI Networks launches My SITI mobile app

    SITI Networks launches My SITI mobile app

    MUMBAI: SITI Networks Limited, an Essel Group company, has launched My SITI mobile app for its customers. The My SITI app gives a convenient way to SITI’s 55 Mn consumers to access and operate their SITI Digital cable TV connection.

    In line with the regulations of the New Tariff Order, and TRAI’s migration plan, the app will give options to customers to indicate their choice of channels / bouquets during the transition period. My SITI App can be downloaded from Google Play Store (https://goo.gl/75pF66) to all Android based mobile devices. SITI has launched a multi-platform campaign to educate its customers on the app and the true power of choice. SITI has also activated the app for their 24000+ business associate network to help them take customer choice in compliance with TRAI’s migration plan. SITI has also activated the feature on its website and is aggressively reaching out to customers and partners through a multi-dimensional campaign.

    My SITI app would also enable customers to select channels / bouquets / packages, make payment, and share feedback through a very simple and intuitive interface on their mobile phones. This is in line with SITIs philosophy of institutionalizing systems and process to drive business operations and compliances.

     “We have always worked towards giving the power of choice in the hands of our customers and enable transparency. My SITI app for customers is a testament to our resolve and a step that will empower our customers by providing real-time access to their accounts, payments and transaction history. We are also enabling customer choice for the successful implementation of the New Tariff Order and QoS regime,” SITI Networks chief business transformation officer Rajesh Sethi said.

  • Pay TV subs show first ever decline globally

    Pay TV subs show first ever decline globally

    MUMBAI: The third quarter of 2018 saw a slight fall in pay TV subscribers, making it the first ever marked changed and probably a point of worry for cable and DTH operators world over.

    The decrease was by 0.11 million, down by 0.02 per cent, as per informitv’s Multiscreen Index reported by Advanced Television.

    Out of the top 100 services, just 43 saw gains including India’s Dish TV where it saw an increase of 200,000. This helped keep up the overall gain in the Asia Pacific region by 1.22 million. With a total of 23.5 million subscribers, Dish TV led the world pack in terms of subscriber numbers with about 23.5 million subscribers after its merger with Videocon d2h.

    Numbers fell for the first time in the Americas, Asia, and MENA regions. Globally, cable saw a cut of 0.22 million while DTH lost 0.9 million.  In the US, AT&T U-Verse was the only one to witness a rise in subscribers by just 13,000.

    Almost all quarters, to date, have seen a 1 per cent rise stay steady. Analysts will continue to see whether coming quarters will see more decline or a revival is in sight.