ITV

Category: DTH Operator

  • Under GST, taxes on cable, DTH & entertainment services to come down

    NEW DELHI: Taxation on entertainment, cable and DTH services shall come down under the Goods and Services Tax regime as the entertainment tax levied by states has been subsumed in the GST, the Indian government said today.

    The Finance Ministry in a statement said services by way of admission to entertainment events or cinematography films in cinema theatres will attract 28 per cent GST with effect from July 1. Currently, states impose entertainment tax of up to 100 per cent in respect of exhibition of cinematography films in theatres/cinema halls.

    The GST Council has finalized 18 per cent tax rate on cable TV and DTH services.
    Currently, these services attract an entertainment tax in states in the range of 10-30 per cent over and above the service tax levy of 15 per cent.

    Under the GST regime, hardware equipment for both radio and television transmission and reception is expected to rise.
    The rates on services by way of admission to entertainment events or cinematography films in cinema theatres is 28 per cent under the GST as compared to some states which have been charging as high as 100 per cent until now.

    Thus, taxes on entertainments and amusements (covered by the erstwhile entry 62 of State List of the Constitution) have been subsumed under GST except to the extent of taxes on entertainments and amusements levied by a panchayat (village administration) or a municipality.

    The rate of GST approved by GST Council on access to circus, theatre, Indian classical dance including folk dance and drama is 18 per cent ad valorem. Further, the GST Council has approved an exemption up to a consideration for admission of Rs 250 per person. These services currently attract entertainment tax levied by the States.

    Thus, entertainment services will be lower under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services. Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods & inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs. Thus, while GST is a value added tax, entertainment tax, presently levied by the States is like a turnover tax.

    Transmission and reception apparatus for both radio and television have been placed in the top category of 28 per cent of the four slabs of the GST. However, the rates may stabilize as taxes levied by states are subsumed in GST.

    Other items coming under the 28 per cent slab are: single loudspeakers, mounted in their enclosures, Audio-frequency electric amplifiers, Electric sound amplifier sets, Parts; Sound recording or reproducing apparatus; and Video recording or reproducing apparatus, whether or not incorporating a video tuner.

    Transmission equipment for radio or TV broadcasting reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders also come under this slab.

    Monitors and projectors, not incorporating television reception apparatus, reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus also fall in this category.

    Meanwhile, BMR Advisors have said that the information technology sector needs to brace for increase in rates of tax under GST. However, effective planning of credits including on transition stock may aid the sector in mitigating this impact.

    In information technology, both imported and domestically produced mobile phones come in the 12 per cent slab.

    Shrink wrapped software product (on media) will attract tax rate of 18 per cent, as will Laptops, desktops, peripherals, parts, etc. Monitors and projectors (capable of connecting to ADP) will attract a rate of 28 per cent, while the majority of networking products will attract 18 per cent.

    Temporary transfer or permitting the use or enjoyment of any Intellectual Property will attract a GST of 12 per cent.
    In services, software services, that is development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software will attract 198 PER cent GST while Electronic supply of software will attract a tax of 12 per cent.

  • FreeDish goes for second auction in May

    NEW DELHI: After bagging three new general entertainment channels earlier this month, Doordarshan is all set for the 35th e-auction for its DTH platform FreeDish next week, thus marking the first time when a second e-auction is being held within the same month.

    The e-auction confined to only non-news and current affairs channels is set for 25 May 2017 will have a reserve price of Rs 80 million as in the e-auction held on 9 May when Sony Wah, Zee Anmol Cinema, and 9X Jalwa successfully bid to come on the platform. Each bid came at the reserve price, Rs 80 million. The Parliament was informed earlier last month that Doordarshan’s DTH platform was soon getting approval to increase this capacity to 250 channels over the next two years.

    But, DD got a jolt last month when its 33rd e-auction slated for 11 April could not be held. Although there was no official confirmation, indiantelevision.com learnt that FreeDish auction could not be held because there were no applicants. After final trials of MPEG4 and the success of the 32nd auction in February, the reserve price for the next auction has been raised to Rs 80 million from Rs 48 million per slot.

    Until last year, the reserve price was Rs 43 million but one channel fetched the bid of Rs 70 million in the auction held on 14 February 2017.

    Earlier last year, the price for one channel went up to Rs 53 million and gave DD the confidence to raise the price which had been Rs 37 million till 2015 but was raised to Rs 43 million for the 25th e-auction in January 2016.

    The e-Auction will be conducted by M/s. C1 India Pvt. Ltd., Noida which also conducted the FM Radio Phase III auctions on behalf of Prasar Bharati.   
    The participation amount (EMD) in the e-Auction is Rs.28 million – up from Rs 15 million – which has to be deposited in advance before or by 12 noon on the date of auction along with processing fee of Rs.25,000 (non-refundable, up from Rs 10,000) in favour of PB (BCI) Doordarshan Commercial Service, New Delhi.

    Incremental amount for the auction will be Rs One Million and the time for every slot e-auction will be of fifteen minutes duration. This may be extended by five minutes if a bid is received before the closing time.

    Unsuccessful bidders will get back the participation amount of Rs 28 million within three weeks of the results.

    However, Doordarshan has changed its payment regimen and made it stricter.

    The first installment of 25 per cent of the bid price with the applicable service tax will have to be paid within one month from date of placement of channel.

    The second installment of 25 per cent of the total bid price along with the applicable service tax will have to be paid within four months of placement of channel.

    The third installment of remaining amount after adjusting the participation fee and previous installments but adding the applicable service tax will be deposited within seven months of placement of channel.

    If any of the installments is not paid in time, a penal interest of 14.5 per cent per annum will be levied.

    If there is failure in depositing an installment for two months, the deposited participation amount along with any installment paid will be forfeited and the channel discontinued after a 21-day discontinuation notice.

    Doordarshan had in October last year formally announced that FreeDish was capable of carrying 104 television channels and 24 channels would be added to the existing 80 channels after the launch of MPEG4 technology.

    In line with the ‘Digital India’ and ‘Make in India’, DD has implemented Indian CAS (iCAS) on DD FreeDish Platform. iCAS (which is an initiative of the central government) was introduced in the auction held last month. The introduction of iCAS will provide enhanced viewing experience.

    DD officials said the existing viewers will continue to get 80 SDTV channels and 32 radio channels, but will have to obtain iCAS-enabled authorized set-top boxes for accessing all new channels.

    Although Free Dish will remain free-to-air with no monthly or periodic fee, the viewers will be required to register with DD FreeDish on getting the new STB from Doordarshan authorized STB dealers.

     DD officials said implementation of iCAS and authorisation of STB original equipment manufacturers (OEMs) by Doordarshan will give a major thrust to ‘Make in India’ and ‘Digital India’. At present, a majority of STBs are imported. However, the introduction of iCAS will help in standardization of STBs and encourage quality STB manufacturing in India.

    With analogue having been switched off, Parliament had been told that many stakeholders feel that FreeDish is the best option in Phase IV which covers rural India.

    FreeDish was launched with a modest bouquet of 33 channels in December 2004, and now carries eighty TV channels and 32 radio channels. This includes 22 Doordarshan channels and two parliamentary channels, seven general entertainment channels, 18 movie channels, 13 news channels, seven music channels, three religious channels and eight channels of other genres. The All-India Radio stations also piggy-back on the platform.

    Also read:

    MIB favours switching to DTH if consumers have problems with MSOs or LCOs

    FreeDish aims to reach 150 channels, earned Rs 3 bn in a year

    DD FreeDish auction next week, reserve price is Rs 80 million

  • Dish TV India ropes in marketing heavyweight Anil Dua as group CEO

    MUMBAI: There’s change at the top at Dish TV India. The DTH firm late last night announced (to the Bombay stock exchange) the appointment of FMCG and consumer durable marketing veteran Anil Dua as its group CEO. He will be replacing current CEO Arun Kapoor who was leading the company for the past 18 months.

    Dish TV said it was bringing in Dua as another leading DTH player Videocon d2h is undergoing an amalgamation with it, which would create a gigantic cable and satellite distribution platform with around 28.1 million subs (as of December 2016). Dua is expected to work closely with Dish TV CMD Jawahar Goel and lead the future merged entity. He carries with him a stellar track record as an astute brand builder, marketer, with a sharp focus on customer experience and supply chain and strategy working with companies such as Hero Motorcorp, Unilever, and Gillette. His specialty has been transformation and building brands of scale.

    During his earlier eight year stint with Hero Motorcorp during which he looked after its advertising, marketing and sales and distribution network, Dua more than trebled the company’s turnover and market cap. Dua also worked at Hindustan Uniiever and helped streamline its foods distribution pipeline. His last outing was as managing director of the diversified Middle east group OTE.

    “We welcome Anil and are confident that his experience will further add to our capability and will help lead the company on a faster growth path,” said Goel in a press release. “His experience in brand building and distribution will add immense value to our organization.”

    Dua on his part is quoted in the release as stating that he was excited with the action in the DTH space and with the opportunity that has been given to him. “I look forwarding to leveraging my experience and working together with the DishTV team in realising their lofty vision,” he said.

    Kapoor, meanwhile, is going to be with Dish TV until the completion of the merger, following which he is expected to go back to teaching MBA students apart from venturing into social work. The proposed merger recently got the Competition Commission of India’s nod for it and the companies are following the process of getting the go ahead from to the National Company Law Tribunal.

  • Videocon strengthens VAS with d2h Nachle

    MUMBAI: What Tata Sky did in December 2015 seems to be inspiring Videocon now. Videocon d2h has partnered with ‘Dance with Madhuri’ to launch an interactive dance service called ‘d2h Nachle’. The service is set to win the hearts of dance-lovers across the 18 million strong Videocon d2h subscriber base and is available for free preview till 22 May.

    Madhuri Dixit, renowned for her legendary dance moves along with her Dance with Madhuri team of eminent gurus and choreographers, is all set to get you dancing on Videocon with its d2h subscribers.

    This association will give dance enthusiasts a chance to synchronise their steps and learn the best in class, dance lessons from the comfort of their living rooms. With support from gurus like Pt. Birju Maharaj, Saroj Khan, Terence Lewis, Remo D’Souza and a host of renowned choreographers from the industry, D2h Nachle powered by Dance with Madhuri is sure to charm subscribers. There are now over 100+ classes, 100+ hours of content and 1800+ lessons. From Indian Classical dance forms like Kathak, Bharatnatyam, to Western forms like Jazz, Contemporary, Hip Hop, Salsa, Bachata and of course lots of Bollywood, d2h Nachle powered by Dance with Madhuri is sure to be a dancer’s delight!

    Commenting on the launch,Videocon d2h executive chairman Saurabh Dhoot said, “D2h Nachle will strengthen our Value Added Services(VAS). Our consumers will find d2h Nachle compelling and engaging, especially the younger ones.”

    Talking about the launch, Videocon d2h chief executive officer Anil Khera said, “Dance is among the most popular expressions of joy and celebration in every part of the country. d2h Nachle, powered by Dance with Madhuri, will bring to every home Madhuri & her expert team of renowned choreographers as their personal dance teachers.”

    Dixit said, “The idea is to give the joy of learning any dance form of one’s choice to everyone and we strongly believe that our association with Videocon D2h will enable millions of people to learn various dance forms from the comfort of their homes. We have assembled a team of some of the most accomplished and renowned choreographers, who help us create lessons that let everyone learn how to dance in the most, authentic, structured and convenient way possible.”

  • Videocon d2h receives shareholder, Competition Commission nod for merger with Dish TV

    BENGALURU: The Saurabh Dhoot led Videocon d2h Limited (Videocon d2h) has informed the Security Exchange Commission (SEC) that its equity shareholders have thought it fit and given consent by the requisite majority to the scheme of arrangement for amalgamation of Videocon d2h with Subhash Chandra’s Dish TV India Limited (Dish TV) and their respective shareholders and creditors. In pursuance to the Order of the Hon’ble National Company Law Tribunal, dated 22 March, 2017, the meeting of the shareholders was held on 9 May in Mumbai. The company intends to file the company petition with the Hon’ble National Company Law Tribunal seeking sanction of the scheme.

    Further, Videocon d2h has also informed the SEC thaton 9 May 2017 it has received a letter dated 4 May 2017from the Competition Commission of India, approving the proposed combination of Videocon d2h with Dish TV.

    Videocon d2h is a Nashdaq listed company, while Dish TV is listed on the NSE and BSE in India and the Luxembourg Stock Exchange in the form of GDRs’. The merged entity, Dish TV Videocon, will have a joint management structure with Jawahar Goel as its Chairman and MD and a vice-chairman and deputy managing director nominated by Videocon D2H shareholders.

    According to a Dish TV press release, following the closing of the merger transaction, the merged entity will be renamed as Dish TV Videocon Limited (Dish TV Videocon). Dish TV Videocon shall issue 857.791 million (85.7791 crore) shares as consideration for the Scheme and the Vd2h shareholders shall be allotted 2.021 new shares of Dish TV Videocon for every one share held in Vd2h subject to certain adjustments. This would result in Dish TV shareholders owning 1,066.861 million (106.6861 crore) existing shares or 55.4% of Dish TV Videocon, and Vd2h shareholders owning 857.791 million (85.7791 crore) new shares or 44.6% of Dish TV Videocon.

    Dish TV Videocon will be led by Jawahar Lal Goel as Chairman and Managing Director, combining the strength of senior and operating management teams while offering further career growth opportunities for employees of the two merging companies. The Vd2h principals shall have the right to nominate two directors on the Dish TV Videocon Board, one of whom shall be cice chairman and the other a deputy managing director.

    The merger is expected to create a leading cable and satellite distribution platform in India. Dish TV Videocon would serve 27.6 million (2.76 crore) net subscribers in India, as of September 30, 2016 on a pro forma basis, out of a total of 175 million (17.5 crore) TV households in India highlighting significant room for growth.

    At the close of the merger transaction, the current promoters of Dish TV shall continue as promoters of Dish TV Videocon. The Dish TV principals are also in discussion with the Vd2h principals to purchase some of the Vd2h principals’ shares in Dish TV Videocon post the amalgamation, details of which are likely to be finalised soon.

  • Videocon d2h to telecast Republic TV

    MUMBAI: Videocon d2h, one of the fastest growing DTH service provider in India, has now added Arnab Goswami’s news channel, Republic TV, to its bouquet.

    Republic TV is a free to air news channel and will feature Arnab Goswami as its lead & star anchor. Videocon d2h is always at the forefront of adding new channels and will play a key role in presenting the channel a wide spread reach across the country.

    Videocon d2h executive chairman Saurabh Dhoot said, “We are delighted to have Republic TV on our platform from the day the channel goes on air. This reaffirms Videocon d2h’s commitment to bringing the best of TV channels for our viewers.”

    Commenting on this collaboration, Republic TV founder Arnab Goswami said, “We are extremely proud to partner with Videocon d2h. With their modern technology and services, we are looking forward to bringing our content to the viewers in every corner of India.”

    Videocon d2h CEO Anil Khera said, “With Republic TV on our platform, we will be further enhancing our bouquet of English News channels. We are confident that the rich news content that Republic TV brings will engage our viewers in this rapidly evolving genre.” The association between Videocon and Republic TV will be available on broadcast as well as digital platforms to ensure nationwide penetration.

    Videocon d2h has prided itself in presenting its subscribers with a robust line-up of 650+ channels and services, including a host of regional channels. It offers a wide range of active services like Smart English, Smart Games & Smart Cooking. The other active services include d2h Hollywood HD, d2h music, d2h spice, d2h cinema in both Standard Definition and HD, etc.

  • DD FreeDish auction next week, reserve price is Rs 80 million

    NEW DELHI: Even as the Parliament was informed earlier last month that Doordarshan’s DTH platform was soon getting approval to increase this capacity to 250 channels over the next two years, FreeDish is all set to hold its 34th e-auction on 9 May 2017 to fill vacant slots.

    After final trials of MPEG4 and the success of the 32nd auction in February, the reserve price for the next auction has been raised to Rs 80 million from Rs 48 million per slot.

    Until last year, the reserve price was Rs 43 million but one channel fetched the bid of Rs 70 million in the auction held on 14 February 2017.

    Earlier last year, the price for one channel went up to Rs 53 million and gave DD the confidence to raise the price which had been Rs 37 million till 2015 but was raised to Rs 43 million for the 25th e-auction in January 2016.

    DD got a jolt last month when its auction slated for 11 April could not be held. Although there was no official confirmation, indiantelevision.com learns that the FreeDish auction could not be held because there were no applicants.

    In many ways, this was a repetition in the sense that the e-auctions for the primary channels of DD National were postponed twice last year.

    The e-Auction will be conducted by M/s. C1 India Pvt. Ltd., Noida which also conducted the FM Radio Phase III auctions on behalf of Prasar Bharati.   

    The participation amount (EMD) in the e-Auction is Rs.28 million – up from Rs 15 million – which has to be deposited in advance before or by 12 noon on the date of auction along with processing fee of Rs.25,000 (non-refundable, up from Rs 10,000) in favour of PB (BCI) Doordarshan Commercial Service, New Delhi.

    Incremental amount for the auction will be Rs One Million and the time for every slot e-auction will be of fifteen minutes duration. This may be extended by five minutes if a bid is received before the closing time.

    Of the reserve price, Rs 11 million will be deposited within one month of placement and another Rs 11 million within two months along with service tax of 15 per cent on the bid amount.

    The balance bid amount will be deposited within six months, failing which the deposited amount will be forfeited and the channel discontinued after a 21-day discontinuation notice. The participation fee will be adjusted against the third and final installment for the respective channel.

    DD refused to disclose the number of slots being put up for e-auction as officials claim this leads to unhealthy practices.

    Doordarshan had in October last year formally announced that FreeDish was capable of carrying 104 television channels and 24 channels would be added to the existing 80 channels after the launch of MPEG4 technology.

    In line with the ‘Digital India’ and ‘Make in India’, DD has implemented Indian CAS (iCAS) on DD FreeDish Platform. iCAS (which is an initiative of the central government) was introduced in the auction held last month. The introduction of iCAS will provide enhanced viewing experience.

    DD officials said the existing viewers will continue to get 80 SDTV channels and 32 radio channels, but will have to obtain iCAS-enabled authorized set-top boxes for accessing all new channels.

    Although FreeDish will remain free-to-air with no monthly or periodic fee, the viewers will be required to register with DD FreeDish on getting the new STB from Doordarshan authorized STB dealers.

     DD officials said implementation of iCAS and authorisation of STB original equipment manufacturers (OEMs) by Doordarshan will give a major thrust to ‘Make in India’ and ‘Digital India’. At present, a majority of STBs are imported. However, the introduction of iCAS will help in standardization of STBs and encourage quality STB manufacturing in India.

    With analogue having been switched off, Parliament had been told that many stakeholders feel that FreeDish is the best option in Phase IV which covers rural India.

    The Ministry had itself said  in Parliament in February that HITS (Head-end In The Sky), private DTH and DD FreeDish are the options in remote rural areas while discussing the issue of the concerns expressed by operators that over 20 per cent of rural and remote areas were not financially and technically viable.

    FreeDish earned Rs 2.8665 billion through auction of 54 slots in six auctions from 30 March 2016 to 14 February 2017.

    In comparison, DD had earned Rs 1.8034 billion in 2015-16. The last e-auction – the 32nd e-Auction – on 14 February 2017 fetched Rs. 655 million. 

     A new era begun with the adoption of MPEG4 helping FreeDish take the first major step to mark towards its target of 104 television channels by March end with its 32nd e-auction which helped it cross the capacity of eighty channels. FreeDish touched the figure of 104 with its 32nd Auction.

    In line with the ‘Digital India’ and ‘Make in India’, DD has decided to implement Indian CAS (iCAS) on DD FreeDish Platform. iCAS (which is an initiative of the central government) is being introduced in 24 MPEG-4 channels. The introduction of iCAS will provide enhanced viewing experience.

    DD officials said these additional 24 MPEG-4 SDTV channels will be available to viewers in FTA mode. The existing viewers will continue to get 80 SDTV channels, but will have to obtain iCAS-enabled authorised set-top boxes for accessing all 104 channels.

    Although FreeDish will remain free-to-air with no monthly or periodic fee, the viewers will be required to register with DD FreeDish on getting the new STB from Doordarshan authorised STB dealers.

    FreeDish was launched with a modest bouquet of 33 channels in December 2004, and now carries eighty TV channels and 32 radio channels. This includes 22 Doordarshan channels and two parliamentary channels, seven general entertainment channels, 18 movie channels, 13 news channels, seven music channels, three religious channels and eight channels of other genres. The All-India Radio stations also piggy-back on the platform.

    Also read:

    MIB favours switching to DTH if consumers have problems with MSOs or LCOs

    FreeDish aims to reach 150 channels, earned Rs 3 bn in a year

  • DishTV launches Cartoon Network games, with Visiware tie-up

    MUMBAI: DishTV, Asia’s largest direct-to-home (DTH) brand, has strengthened their partnership with Visiware International, the leader in games for interactive television to launch Cartoon Network games in partnership with Cartoon Network India, the most loved kids’ channel in India.

    Cartoon Network TV games, accessible on channel no. 967 within “PlayZone Active” on the DishTV platform, offers 8 games branded under the much loved and immensely popular major cartoon characters amongst kids, who lead the Cartoon Network portfolio–Ben10, Powerpuff Girls and Roll No. 21. A variety of games will be available under each of these characters to enhance the player’s experience and get them to engage closer with their favorite toons.

    Elated with the promising tie-up, DishTV CEO Arun Kapoor said; At DishTV, we have always believed in providing the best entertainment to our subscribers. Being India’s most trusted DTH brand, we ensure that our subscribers from all age groups get entertained. Keeping this in mind, we are glad to strengthen our partnership with Visiware International to launch a whole new set of Cartoon Network games on our platform.  We are delighted with this launch, since this service will offer games with India’s favorite characters such as Ben10, Powerpuff Girls, Roll No. 21 and more to mass audiences residing in smaller towns also. This strengthens our portfolio by penetrating not only the larger cities, but also the Tier II-Tier III cities and small towns.”

    Visiware International COO Frederic Fellague remarked, “We are delighted to partner with Cartoon Network India and DishTV for this product. We are strong believers in partnerships with TV channels and Pay-TV providers to create new kind of interactivity on Set Top Boxes. Our track record in that area is significant internationally and we hope to develop these in the near future.” Adventure Time* with Jake, the old dog Finn and the human boy.

    . Ben 10 * with Ben Tennyson and his brand new avatar as the feisty 10 year old and his new by-the-book rookie partner.

    . Grim Adventures of Billy & Mandy* with the Grim Reaper as their forced best friend.

    . Roll no 21* with Kris stranded in a school run by a demon principal.

    . Powerpuff Girls* with Blossom, Bubbles and Buttercup, three super-powered little girls,

    . Regular Show* with Mordecai and Rigby, the two best of friends.

    The games will be rotated on a monthly basis with one game refreshed every month. What more, the player can resume playing at any level using the access code provided at the end of each level on a selection on games. The service is available from May 2017 to all Dish TV subscribers on Channel 967. This service will be available for free preview to all DishTV subscribers for one month post which the service will be charged Rs.40 (including taxes) per month.

    Visiware International, whose services have been deployed on 50+ networks worldwide, has for the last 20 years, been developing games for satellite, cable, IPTV and fiber networks as well as connected TV sets and OTT boxes. It’s partnership with Cartoon Network will enable Visiware International to put out high quality, premium content that is all set to redefine the casual gaming in interactive television for pay TV operators. Cartoon Network IPs and its much loved characters bring in that extra fun and thrill to gaming, like never before.

  • After Star, Tata Sky all set to challenge TRAI tariff: Harit Nagpal

    MUMBAI / NEW DELHI: Finally, after a wait of around seven months after it was first notified and then re-notified on 3 March, the tariff order for digital addressable system has come into effect today – but implementation may take some time after overcoming some stumbling blocks.

    Even as the petition filed by Star India and Vijay TV on the ground that the Telecom Regulatory Authority of India cannot regulate content which falls under the Copyright Act 1957 is pending hearing in Madras High Court, direct-to-home platforms are expected to pose a major challenge to its implementation.

    Primarily, the problem occurs because all stakeholders will have to abide by the rates fixed by the broadcaster according to the new tariff order.

    The DTH players are agitated not only with the fact that they pay over 85% of the service tax and entertainment tax in the digitised universe, but the fact that their liberty to make their own bouquets may be taken away with the broadcasters having the say in fixing rates for individual channels.

    Tata Sky CEO Harit Nagpal has confirmed to indiantelevision.com that it is moving the Delhi High Court against TRAI on the tariff order. As it is one of the largest among the six private DTH operators, the approximately Rs 50-billion Tata Sky may be joined by other players.

    Tata Sky had designed packages as per genre so as to make it smoother for the customer but may now have to change these bouquets/bundles as the new order directs the DTH operators to offer channels on an à la carte basis and then link them to the bouquet price.

    There are several conditions in the new order as to how the channels could be priced in a bunch, and individually, Nagpal said. If one aspires that consumers are going to use an app and order a channel that may not take place in the Rs 58000-crore television industry.

    Consumers in India would expect the salesperson to answer their specific queries before they subscribe. Nagpal said it costs Tata Sky around Rs 200 to successfully close one subscription as a call centre call costs Rs 7 a minute. Tata Sky’s margin is Rs 60,which is 20 per cent of Rs 300 — the average revenue from each subscriber. Tata Sky apprehends going out of business taking into consideration the cost of handling calls, and the lowly profits.

    The platform which claims around 12.08 million active subscribers has explained all points in detail to TRAI, but to no avail. The new order has been notified, and it’s too complicated to enlist channel pricing on the website as expected, Nagpal said.

    Nagpal said, ideally, the purpose of the government should be to achieve absolute digitisation and transparency by streamlining the ties between the MSOs and LCOs.

    The cable operators have in so many years failed to offer tiered packages, even at the genre level. With the aim of making the category fully transparent, it needs to switch to prepaid so as to make sure the MSO acts similar to DTH operators that collect money in advance.

    At the lowly margin of 20%, the Tata Sky executive said it was not encouraged to innovate in terms of providing Interactive services, HD, DVR and on-demand services, etc. He said the tariff order was not implementable, and this would be proved before the Delhi High Court in the case being filed this week.

    The new carriage fee structure that has been proposed made channels serving smaller group or communities non-profitable. The Tata Sky CEO said he failed to comprehend why a channel would pay a fee to be carried on a platform.

    Owing to its transparency and qualified processes, the company that is best equipped to implement the new TRAI order was Tata Sky, Nagpal believed, but added: “If Tata Sky is unable to implement it, none can.”

    India is one of the cheapest market for cable television entertainment even when one compares it with similar per capita Asian nations such as the Philippines and Indonesia US$25 per month, whereas consumers in India pay around US$5-6.

    TRAI had first come out with a draft tariff order in October 2016 but was embroiled in the case in Madras High Court which had initially directed status quo. Later, TRAI had issued the orders on 3 March after getting the green signal from the apex court even as the broadcasters’ case was pending in the High Court.

    Apart from the Tariff order which had originally been issued on 10 October last year, the regulator also issued the DAS Interconnect Regulations which had been issued on 14 October last year, and the Standards of Quality of Service and Consumer Protection (Digital Addressable Systems) Regulations which had been issued on 10 October last year.

    Also Read ;

    Decks cleared for TRAI tariff order implementation as HC declines stay (updated)

    No advancing of Star India hearing in TRAI tariff case: SC

    Upload channel capacity & RIO immediately, AIDCF urges MSOs

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

  • PEMRA petition in DTH case admitted in Pak SC

    MUMBAI: The apex court of Pakistan on Thursday admitted for hearing an appeal filed by the Pakistan Electronic Media Regulatory Authority challenging a Lahore High Court order of 28 December 2016, that had set aside PEMRA regulations prohibiting television broadcasters from entering the Direct to Home (DTH) market.

    SC’s five-judge bench headed by Justice Gulzar Ahmed granted leave to appeal after hearing the arguments of PEMRA counsel Salman Akram Raja, the Dawn reported.

    Advocate Raja argued that Pakistan’s television broadcast market is dominated by 10 television channels out of a total of 90, in terms of market share and advertising revenue. On 24 November, 2016, PEMRA had auctioned three DTH licences for PKR 14.69 billion with the aim of stopping the proliferation of ‘illegal’ Indian DTH broadcasts which were causing an annual loss of billions of rupees to the national exchequer. The highest bid was raised by Mag Entertainment for PKR 4.91 billion, respectively followed by M/s. Shahzad Sky for PKR 4.90 billion and M/s. Star Time for Rs 4.89 billion. PEMRA had issued non-exclusive licences for 15 years to the three companies.

    PEMRA argued that if the broadcasters were to be allowed to enter the DTH market, one or more of the larger broadcast channels would end up controlling the distribution of the content while monopolising one-third or more.

    Earlier, the Lahore High Court has requested PEMRA to start the bidding process for direct-to-home (DTH) licences again, after it declared the auction void.

    Pakistani DTH services would have countered the sale of Indian DTH services in Pakistan, which leads to annual transfer of between US$ 200 million to US$ 350 million to India on account of subscription fee.

    Also read:

    Pak DTH: Mag, Shahzad & Star Time to start ops in a year

    Pakistan gets tough on Indian DTH & content

    Pak DTH licence bidding stayed