ITV

Category: DTH Operator

  • FreeDish a key driver in FTA channels’ growth by ’20

    BENGALURU: Telecom Regulatory Authority of India (TRAI) numbers for the six private players in the DTH industry show a very poor growth rate of just 0.96 million and 5.8 million during the quarter and year ended 31 March 2017 (Q4-17, FY-17) respectively. This figure is far lower – less than one-third of the 17.38 million active DTH subscribers added in FY-16. According to an E&Y report titled ‘India’s Free TV’ released in July 2017, among the DTH operators in the country, DD FreeDish has grown to become the largest with estimated 22 million subscribers. This would make it the single largest distribution platform in India today. While there is no concrete data around it, because any customer can buy from a variety of hardware options and commence downlinking the FreeDish feed, DD FreeDish subscribers are expected to cross 40 million in the next 2 to 3 years.

    The report says that this growth in subscriber base has caught the attention of both broadcasters and advertisers today. All large broadcasters, including Star, Zee, Sony and Viacom, have launched their FreeDish-based channels. The content on these channels is similar to that on the broadcasters’ general entertainment pay channels but is dated by up to a year or even less. Success of channels such as Zee Anmol (with ad revenue of approximately Rs 800 million) and Sony Pal (with ad revenue of approximately Rs 1,100 million) has led to even further channel launches by broadcasters, which have now launched FTA film channels on FreeDish as well.

    Hindi news television, a segment always skewed toward FTA channels, has taken to DD FreeDish in a big way in order to protect its ad revenues and save on the carriage fees charged by distribution companies. Almost all large Hindi news channels are now on the DD FreeDish platform says the report.

    The report says that several factors are working together in the current environment in 2017, which E&Y believes will lead to a significant growth in free TV viewership over the coming years. These factors include:

    1.    Digitisation of cable TV distribution – DAS IV Given the regulatory push toward digitization, the government of India has mandated the total shutdown of analogue cable transmissions from April 2017. In effect, this will require consumers, particularly those in DAS III and IV markets, to make a choice – opt for more expensive cable TV options, DTH or free TV options such as terrestrial TV or FreeDish. Given that they would have to invest in hardware (a STB and perhaps also a dish), the more price-conscious customers may opt for free television services in the immediate term.

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    2.    The proposed new tariff order -With the base price set by the new tariff order at a maximum of Rs130 plus tax for carriage of 100 channels, customers paying Rs150 per month or below will now end up losing access to all pay channels they were receiving. In such an event, they would have the option to either pay more to receive pay channels of their choice or decide that free television would be a better option, given the quantum of quality content on it. Broadcasters’ FTA channel strategy may impact their subscription revenues in the event the move toward free television becomes significant.

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    3.    The fast growth of DD FreeDish – FreeDish currently provides over 80 channels and is moving toward 250 channels, many of whom have the same or similar content than pay channels. In addition, recent regulations classifying even more sports events as those of national importance (hence requiring them to be shared with DD) make the FreeDish bouquet formidable competition to pay bouquets.

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    4.    DTT on mobile infrastructure- One interesting development relating to mobile television is the advent of digital terrestrial distribution. Since this is a broadcast technology, the key implication will be that consumers whose mobile handsets have the required antenna would not be required to pay any bandwidth charges. Consequently, once the mobile handset ecosystem matures, DTT could also provide a strong addition to free television services.

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  • Smuggled STBs & Indian DTH may be used, IBF advises Nepal to defer Clean Feed

    MUMBAI: Nepal had recently issued a clean feed policy. However, owing to unviable business proposition, it is felt that distribution channels may face discontinuation leading to rampant piracy all over Nepal. It was highlighted that in-cable operators may resort to using Indian DTH connections to re-distribute the signals. Viewers too may start buying Set-Top Boxes (STBs) and Viewing Cards of Indian DTH operators without knowing that the same may have been smuggled into Nepal. IBF has appealed that “the Government of Nepal ought to defer implementation of a “Clean Feed” policy until implementation of digitization so as to evaluate best ways to take advantage of the same as is being done by other countries.

    In the recent past, Government of Nepal issued clean feed policy pursuant to which downlinking licenses of foreign broadcasters is sought to be permitted only if foreign channels being distributed in Nepal do not contain any advertisements (“Clean Feed Policy”). The Clean Feed Policy is sought to be implemented by Government of Nepal from 16 July, 2017.

    To apprise the Government of Nepal on the possible fallouts of the proposed policy and its likely impact on the economic development of Nepal – particularly from the point of view of loss in revenue and employment in the Country, Indian Broadcasting Foundation (IBF) has had a series of discussions with Nepal Government officials. During the discussions, broadcast fraternity of India conveyed the technical and economic unviability of the proposed Clean Feed Policy in Nepal. Broadcasters also conveyed that consumers and various distribution platforms in Nepal would be adversely effected in case the proposed policy is implemented on the designated date.

    (a) It was highlighted to the Government of Nepal that any such policy ought to be framed only after holding transparent and holistic consultations involving all stakeholders in an environment where digitalization of distribution networks in Nepal has been completed and issues relating to implementation of anti-piracy laws have been put in place, as is not the case presently.

    (b) Launch of clean feed would inter-alia entail separate playout, uplink and downlink costs. Nepal being an emerging market with very low ‘Average Revenue Per User’ (“ARPU”), such exorbitant costs to create clean feeds are not justifiable from a business viability point of view.

    (c) Due to unviable business proposition, it is felt that distribution channels may face discontinuation leading into rampant piracy all over Nepal. It was highlighted that in cable operators may resort to using Indian DTH connections to re-distribute the signals. Further, in such a situation, viewers too may start buying Set-Top Boxes (STBs) and Viewing Cards of Indian DTH operators without knowing that the same may have been smuggled into Nepal.

    (d) The demand for ‘clean feed’ is at variance with and may be counter-productive to Government of Nepal’s laudable initiative for implementation of digitalization of distribution networks. This is so because digitization is a cost intensive exercise and any discontinuation of channels on account of implementation of Clean Feed Policy ought to have an adverse impact on revenues of cable operators (thereby affecting their ability to invest monies for digitization). It was submitted that such impact can have a cascading effect on survival of distribution platforms thereby, as a chain reaction affecting employment locally and also distribution / reach of local Nepalese channels.

    (e) Government of Nepal should first allow implementation of digitization before proceeding to evaluate need for introduction of a Clean Feed Policy. It was highlighted that digitization with addressability is a potent tool to keep in check on unaccounted cash transactions, which may not only cause losses to distribution platforms and broadcasters but, also to the Government exchequer in the form of lost taxes.

    (f) Proper and effective implementation of digitization will give an insight to broadcasters on type of content being consumed, and as a consequence, they will be able to evaluate consumer choice better. From Government’s point of view, digitization will also afford a line of sight on content being distributed in Nepal, revenues being generated by distribution platforms and consequential license fees / taxes that they are paying. Such license fees / taxes can be utilized by the Government inter-alia towards cross-subsidizing expenses of Nepalese broadcasters or other initiatives.

    Girish Srivastava, Secretary General of IBF, appealed that “the Government of Nepal ought to defer implementation of a “Clean Feed” policy until implementation of digitization so as to evaluate best ways to take advantage of the same as is being done by other countries. Meanwhile, with the renewal of channel licenses due on 15 July 2017 – we would request the Ministry of Information and Communication (MOIC) to allow existing/new channels to be distributed without the Clean feed condition – with the understanding that the license shall not be withdrawn for at least till the next term is due”. Adding further to his request, Srivastava stated that “entire Indian broadcasting fraternity attaches a great degree of significance to the existing deep cultural, linguistic, social, economic ties between the two nations and its commitment to further the same in times to come”.

  • DTH subscriber addition disappointing in calendar 2016

    BENGALURU: The carriage industry — more specifically the direct-to-home or DTH industry — has had a disappointing calendar year 2016 (CY-16) going by data provided by the Telecom Regulatory Authority of India (TRAI) in the first edition of its Yearly Performance Indicator Report of the Indian Telecom Sector for  2016 (IR-2016). This was mentioned by indiantelevision.com earlier after some players declared their results for fiscal and fourth quarter ended 31 March 2017. (FY-17 and Q4-17).

    Substantiating our findings, the TRAI report says that in CY-16 the registered DTH subscriber base grew only 14.45 percent from 84.8 million in CY-15 to 97.05 million in CY-16. A further downside was that the active subscriber base grew just 11.91 percent to 62.65 million in CY-16 from 55.98 million in CY-15. In absolute numbers this means that a little more than half (54.45 percent) of the registered suppliers (12.25million) added were active suppliers (6.67 million).

    The DTH industry had expected to grab a substantial percentage of the analogue cable subscribers from DAS Phase IV, – the sunset date for which had been extended by the government to 31 March 2017 from the earlier date of 31 December 2017.

    Please refer to the figure below for the market share of the six private pay DTH players in India. According to TRAI data, these three players had a 68 percent share of the private DTH market. Besides the six private pay DTH players, Doordarshan’s (DD) FreeDish DTH service  is a major player and is the largest DTH player by far in terms of subscribers with an estimated 15 million or 1.5 crore subscribers in 2015 as per the KPMG-FICCI Indian Media and Entertainment Industry Report 2016 (KPMG-FICCI M&E Report 2016) titled The Future: Now streaming. It must however be noted that an exact number for registered or active subscribers is not available even with DD, since this is a free DTH service.

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    Of the 6.67 million active DTH subscribers added by the industry, 4.65 million (69.72 percent) were added by three major DTH players whose information is available in the public domain. They are Bharti Airtel’s digital TV services or Airtel DTH, Dish TV and Videocon DTH.

    DAS was a huge opportunity for all the players in the television carriage ecosystem – in phase IV alone, this meant about 42 million analogue cable television homes. It is quite obvious from TRAI data that the industry has failed to do so. The DTH players could capitalize on just about 16 percent of this opportunity. And despite the extension of the sunset date to 31 March, 2017, DTH subscriber growth has slowed down even further, if one were to go by the subscribers added by the three big players mentioned above in the fourth financial quarter (1 January 2017 to 31 March 2017) – the three added a shade above half a million subscribers combined in Q4-17. Please refer to the figure below for the subscriber addition data by the three major players.

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    In FY-16 (year ended 31 March 2016) , the three players had added about 65 percent more subscribers in absolute numbers at 4.93 million as compared to the 3.81 million added in FY-17 (year ended 31 March 2017).The DTH industry witnessed a slowdown in subscriber growth even in the previous financial year. Combined subscriber additions for the annual period ended 31 March 2016 (FY-16) vis-à-vis the previous year (FY-15) grew by 14.8 percent of the three pay-direct to home operators in India.  This subscriber growth rate was however a little less than half that these entities had in FY-15 at 24.7 percent as compared to FY-14.

    Also Read :

    DTH subscriber growth slows down even further

    Active DTH subscriber growth subdued in Oct-Dec’16 quarter

    The growth of DTH in India

     

  • RINcash to recharge mobile & DTH connections

    MUMBAI: RechargeItNow.com, a brand of Online Recharge Services, recently launched RINcash Wallet. This easy-to-use online platform allows its users to make bill payments and recharge their mobile or DTH with just one click and automatically earn cashback points with other exciting offers.

    “RechargeItNow.com has launched a close-loop wallet RINcash, which offers a unique opportunity to its customers to receive credit of their rewards for using our services. Users will see unique customized offers which will enhance their value of using our services and help them earn free talktime too,” said Online Recharge Services president Sharat Jain.

    India’s online mobile and DTH recharge brand, RechargeItNow, is growing fast. It has 14 million registered users, adds 140,000 users every month and processes 40,000 recharges every day.

    RINcash Wallet provides 100% redemption of available RINcashpoints in one go. With best in the market cashback deals and offers, RINcash Wallet is both unique and flexible, because it allows customers to pay through credit card, debit card, net banking and UPI/Wallets – and is seamlessly integrated with all mobile operators and leading payment gateways in India.

    Shailendra Gupta, CTO and VP-Business Development, says, “RINcash Wallet provides awesome value through cashback deals and offers. RechargeItNow is running exciting cashback promotions for existing and new users across all platforms (desktop site, mobile site and Android mobile app), with cashback points directly credited to a user’s RINcash Wallet. We will continue to provide more value to users through new services, deals and offers. So stay tuned to RechargeItNow.”

  • Tata Sky & QYOU partner to bring online video content

    MUMBAI: QYOU Media, a leading curator of premium ‘best-of-web’ video for multiscreen distribution, has expanded its partnership with Tata Sky, a leading content distribution platform in India, in the largest single-territory deployment of its linear channel to date. Previously available through Tata Sky’s mobile app, this broader deal will make QYOU’s 24/7 service of online video content available to 17 million Tata Sky connections across television and mobile.

    The rapid growth in internet access has seen the number of users in India surge to almost 400 million. Online short-form video available through sites such as YouTube, Daily Motion and Facebook is hugely popular, with the average length of a viewed video in India being less than twenty minutes. To cater to the tastes of digital native millennial and generation Z audiences who are engaging with short-form video on a daily basis, Tata Sky will feature The QYOU’s 24/7 service which curates unique digital-first content. This content will be featured through the screens and services its younger customers in India love to use, especially mobile and TV.

    As part of the agreement, QYOU and Tata Sky will also start to feature content from local creators in India and some of the most popular online videos from the region in order to create highly localized shows that appeal to Indian audiences. The service will be available on Ch 200 (HD) & Ch 201 (SD) on Tata Sky and keeping in mind the ‘on the go’ nature of the content, it will also be available on the Tata Sky app on Live TV and VOD.

    Tata Sky chief content officer Arun Unni commented: “Catering to audiences’ changing preferences and tastes has always been the core focus for Tata Sky. This will be the first time that subscribers can view short format content 24×7 on their TV sets on the Tata Sky Mobile App. With the burgeoning popularity of online video in India and the incredible depth of unique content in QYOU’s archives, it makes complete sense for us to provide this service to our subscriber base.”

    QYOU Media CEO Curt Marvis adds: “India is renowned for being a region filled with tech-savvy young people, who navigate the worlds of internet video and traditional television with complete ease. Having a curated mix of the best digital-first video content at their fingertips – whether they’re watching on a mobile device or via the TV screen – means that they can enjoy the best of both worlds and never miss a thing. We are proud that our partnership with Tata Sky is evolving and enabling us to make the largest deployment of our channel in a single market to date.”

  • Pay-TV: India among four countries which contributed $16 bn rev between ’10 & ’16

    MUMBAI: In 138 countries, pay-TV revenues increased by $32 billion (Rs 2063 billion) between 2010 and 2016, to reach $202 billion. However, according to the Global Pay TV Revenue Databook from Digital TV Research, only $1.23 billion was added last year (in 2016).

    Almost 50 per cent of the $32 billion additional revenues came from four countries: the US provided $7 billion, Brazil $3 billion, China $4 billion, and India $2 billion, Advanced Television reported. Revenues, however, declined in nine countries, primarily owing to subscribers converting from standalone TV to bundles (which are less lucrative for TV). Between 2010 and 2016, revenues of pay-TV more than doubled in 59 countries.

    Digital TV Research principal analyst Simon Murray said that, although no decline was recorded, European pay-TV revenue growth had slowed down considerably. Despite its pay-TV revenues being higher in 2016 than in 2010, North America had peaked in 2015, Murray added.

    The Asia Pacific region positively added $10.21 billion between 2010 and 2016 – increasing by 42 per cent to $34.38 billion. Latin America hiked by 78 per cent to $18.44 billion. Sub-Saharan Africa more than doubled its total revenues to $4.20 billion.

    In all 49.5 per cent global pay-TV revenues in 2016 came from the US; for the first time falling below the halfway median. The 2016 total — 54.5 per cent in 2010 — is down. The US is followed by far by China, the UK, Japan, and Canada. Two-thirds of global pay-TV revenues in 2016 was generated by these five nations.

    Also Read :

    Pay TV-DTH gains: Airtel leads subs race as Jio could pose challenges

    Tata Sky offers top channels & services

  • Malaysia’s Astro ‘doesn’t know’ about talks with Reliance Digital TV

    NEW DELHI: Malaysian and ASEAN content and consumer company Astro Malaysia Holdings Bhd has scotched rumours about due diligence being done to buy financially-beleaguered Indian DTH operator Reliance Digital TV saying it “does not know anything” about the talks.

    “I read about it in the newspaper,” Astro CEO Datuk Rohana Rozhan was quoted as saying by website The Edge Markets in a report datelined Kuala Lumpur. The pay TV service provider’s executive further told reporters that “as a matter of principle, we don’t comment on rumours.”

    According to the website report, pressed with questions on whether Astro was denying that it was in talks with Reliance Digital TV, Rohana was quoted as saying, “I don’t know anything about it and I am the CEO of this company.”

    Malaysia’s The Star few days earlier had carried a wire agency report of Bernama that Astro was performing a due diligence to buy into Reliance Digital TV, a business venture under Reliance Communications controlled by Anil Ambani. A Reliance spokesman had declined to comment when contacted by Bernama wire agency that sourced the news story to a report in Times of India.

    The Bernama report had gone to add that with just 2 per cent subscribers in the Indian DTH market, Reliance Digital TV faces stiff competition from bigger players and a sale deal could help RCom cut its debt. Astro has a 20 per cent stake in south Indian DTH operator Sun Direct.

    Last year the Anil Ambani-controlled Reliance Communications had entered into a definitive agreement with the Zee group companies to sell its TV broadcast comprising few channels and radio FM businesses subject to regulatory approvals. Buyer Zee presently is in the process of integrating with the group the Reliance businesses.

    Astro Malaysia Holdings Berhad is a Kuala Lumpur-based content and consumer company that is recommitting towards being a technology-driven organisation in the digital, TV, radio and e-commerce space.With a customer base of 5.8 million or approximately 71 per cent penetration of total households in Malaysia, Astro serves 21 million individuals by offering a wide range of media and entertainment products spanning across television, radio, digital media and home shopping.

    Astro’s value proposition includes 188 TV channels broadcast via DTH satellite TV, IPTV and OTT platforms, of which 60 are Astro-branded and 72 are in HD. Astro also offer a non-subscription freemium service called NJOI, which offers 28 channels, of which two are in HD and 19 radio stations.

    ALSO READ:

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    Zee Media’s 49% stake in 92.7 BIG FM gets it 59 radio channels 

    NDTV Lifestyle: Board decides not to purchase Astro’s 49% stake

  • Intelsat & Dalkom partner to expand broadband & DTH in Africa & Middle East

    MUMBAI: Intelsat S.A., an operator of the world’s first Globalized Network and leader in integrated satellite communications, recently announced that Dalkom Somalia signed an agreement for satellite services that will expand its broadband enterprise and direct-to-home (DTH) services in East and Central Africa and the Middle East.

    Intelsat network combines the world’s largest satellite backbone with terrestrial infrastructure, managed services and an open, interoperable architecture to enable customers to drive revenue and reach through a new generation of network services. Dalkom Somalia has grown into one of today’s fastest-growing telecom companies offering next-generation solutions for broadband, connectivity, cloud computing, managed services, satellite services and internet services for businesses, wholesale and consumers segments.

    “Dalkom has offered satellite services in the past, but the versatility of the Intelsat 17 satellite convinced them that moving to Intelsat was the best option for meeting its expansion goals”

    Under a multi-year agreement, Dalkom, a privately owned operator based in Somalia, will incorporate Ku-band satellite services provided by Intelsat 17 to extend services currently delivered by its fiber network. This includes expanding broadband enterprise networks into countries such as South Sudan and Democratic Republic of the Congo, as well as the Middle East. Dalkom will also add DTH services to its portfolio in Somalia. Intelsat 17, located at 66° East, is part of Intelsat’s video neighborhood in the Indian Ocean region.

    “We have a strong terrestrial fiber network, but our opportunities to expand into new regions and capitalize on new opportunities were limited,” said Mohamed Jama, CEO of Dalkom. “By adding Intelsat’s satellite expertise to our network, we can expand our enterprise services into regions where terrestrial technology cannot provide services. Intelsat 17 will also allow us to capitalize on Intelsat’s media distribution knowledge to introduce DTH services for customers. This makes Dalkom the first company to offer these bundled services in Somalia, offering our customers a one stop shop for communication solutions.”

    “Dalkom has offered satellite services in the past, but the versatility of the Intelsat 17 satellite convinced them that moving to Intelsat was the best option for meeting its expansion goals,” said Brian Jakins, Intelsat’s Vice President, Africa. “The ability to deliver broadband enterprise and DTH services via the same platform provides easy access to new markets and customers without worrying about network reach and reliability. This allows Dalkom to focus on growing its business. Our satellite platform will also complement its fiber services by serving as an instantly available back-up to protect against any service interruptions.”

  • Dish Media Network upgrades DTH with Spacecom deal

    MUMBAI: Spacecom, an operator of the AMOS satellite fleet, recently announced that Nepal’s Dish Media Network has furthered its long-term association with AMOS-4. Located at the 65°E prime orbital position, AMOS-4 provides Dishhome with substantial satellite capacity enabling the DTH provider to expand its SD and HD channel services.

    Founded in 2009, Dish Media Network Pvt. Ltd. is the only DTH operator with distribution covering all of Nepal. One of Nepal’s fastest-growing operators in the broadcast and transmission services industry for digital television channels, Dishhome’s capacity on AMOS-4 is contracted for the satellite’s lifetime.

    Dish Media Network CEO Sudeep Acharya commented, “This agreement will keep our growth trajectory moving forward and upwards. Our deep association with Spacecom’s AMOS-4 enables us to build out and expand our brand, further our strategic goals and strengthen our operations throughout Nepal.”

    According to David Pollack, president & CEO of Spacecom, “This agreement with Dish Media Network adds strength to our position in Asia. AMOS-4’s power and focus on Asia makes it a prime choice for providing a range of satellite services in the region, as well as in East Africa.”

    AMOS-4 has eight Ku-band transponders of 108 MHz and four high-power Ka-band transponders of 216MHz, each with steerable beams. The Ku and Ka transponders create a powerful platform, enabling a wide range of connectivity options to reach throughout the region’s vast geography. Offering extensive broadcast and broadband reach for satellite services including DTH, video distribution, VSAT communications and broadband Internet, the satellite’s geographic position meets broadcast and broadband needs within the Asian, African and Middle Eastern markets.

  • Videocon d2h & Reliance Digital finding ways to wriggle out of tough situations

    MUMBAI: DTH companies in India are facing a tough time. While Videocon is making several significant moves to reduce its heavy debt, Reliance Digital TV is reportedly in talks with a Malaysian company to sell the business.

    Videocon is trying to repay its debt by selling some of its businesses such as Kenstar and merge its direct-to-home (DTH) division with Dish TV. But, if the Petrobras project takes off, it will be in a comfortable position, and could look at exiting the project at a later stage, a
    Videocon lender, who would accompany petroleum ministry’s delegation to Brazil, told the Financial Express.

    On the other hand, Astro Malaysia is reportedly doing the due diligence of Anil Ambani’s Reliance Digital TV, the DTH business of the listed Reliance Communications, for working out a suitable valuation, a source told the Times of India. An RCom spokesperson, it was reported, has denied commenting on the story.

    Videocon was recently declared a NPA by Dena Bank. The visit to Brazil was postponed to June; it will be a meeting between the governments of Brazil and India, but the bankers hope to lobby for faster resolution of the project so that Videocon’s cashflows improve.

    Airtel DTH, Dish TV and Videocon d2h have about two-thirds (65 percent) of market share of the DTH universe by private players in India. However, the DTH industry seems to be on a downward slide. Reports submitted by the carriage industry indicate that DTH subscriber additions in the extended period have been low.

    Now, if the transaction between Ambani and Astro goes through, it will be the second deal between the two. Astro shareholder T Ananda Krishnan’s Maxis Communications is a significant shareholder of Aircel, which is about to be combined with RCom’s wireless unit.