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Category: DTH

  • The party continues on Tata Sky Mobile app

    The party continues on Tata Sky Mobile app

    MUMBAI: The Tata Sky Mobile App streamed every pulsating beat  spinning out from the turntables of the EDM scene’s biggest stars to smartphones around  the country, as the second day of the Ola Sunburn Festival 2017 turned the volume up on the year’s biggest party.

    DJ Snake and the increasingly popular female DJ, Teri Miko, were among the local and international acts performing on the second day of the festival, as track after track of crowd rousing music was pumped out at Pune’s Oxford Golf Resort and on phones around India.

    At the Ola Stage, things kicked off with Kash Trivedi, a house music producer dropping his best tracks. He was followed by Krosses, Paratara, Hollaphonic and the final act by Sartek, the first Indian DJ to be featured by Hardwell’s Revealed Recordings.

    As the sun set at the Empire of the Sun 2.0 stage, Teri Miko was getting the party started by playing some of her best tracks. Swedish producer Salvatore Ganacci took over from Teri, and then made way for Kayzo, who set the stage for the final act by DJ Snake who got the crowd grooving with his wildly popular track, ‘Lean On’.

    Every throbbing beat from the opening day of Ola Sunburn 2017 was streamed live on Tata Sky’s mobile app. India’s leading content distribution platform has tied up with the festival, one of the largest in the world, to bring its eclectic mix of music, entertainment, experiences, celebration and lifestyle straight to the smartphone.

    Apart from streaming every second of the action from each of the festival’s four days live, the app, open to all users including non-subscribers, will also showcase nearly 500 hours of additional content, including after movies, artist interviews and exclusive backstage footage.

    The sheer depth of content on offer, which will be archived on the app for viewing after the festival ends, will allow EDM fans to fully immerse themselves in the 11th edition of Asia’s largest music festival on-the-go, wherever and whenever they like.

    The third day of Ola Sunburn 2017 kicks off Saturday afternoon and will feature 23 acts, including KSHMR, Nucleya and Clean Bandits.

    Fans can watch every second of it live on the Tata Sky Mobile App. So, don’t miss out. Download the app now and be a party of the biggest party of the year.

  • DTH subscriber growth down in second quarter

    DTH subscriber growth down in second quarter

    BENGALURU: The carriage industry and more specifically the direct to home or DTH industry had a disappointing fiscal year 2017 (FY-17, year ended 31 March 2017) in terms of subscriber growth. Going by the subscriber numbers data of the six private DTH players in India provided by the Telecom Regulatory Authority of India (TRAI) in its Indicator Reports of the Indian Telecom Sector. This dismal performance seems to have spilled over to the second quarter of financial year 2017 (FY-18, year commenced on 1 April 2017 until 31 March 2018) as per TRAI data for the quarter ended 30 September 2017 (Q2-18, quarter under consideration). The industry could add just 2.47 million subscribers during the first six months (first 2 quarters, 1 April 2017 to 30 September 2017) as compared to the 3.37 million subscribers it added during the corresponding year six-month period the year before. Active DTH subscribers added in Q2-18 were just 0.78 million as compared to 1.4 million in Q2-17.

    Further, as reported by us earlier, despite the sunset date for DAS IV having passed, the DTH industry had not been able to leverage the opportunity that it was presented with. Earlier, TRAI numbers for the six private players in the DTH industry showed a very poor growth rate of just 0.96 million and 5.08 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 that were added in fiscal 2016 by the six.

    Please refer to the figure below – The three players whose numbers are available in the public domain and whose combined q-o-q subscriber growth has been represented in the figure are Dish TV, Airtel DTH and Videocon d2h

    public://1_6.jpg

    Let us understand the status of the DTH industry at the end of September 2017. The six private DTH players are – Dish TV, Tata Sky, Airtel Digital Services (Airtel DTH), Videocon DTH, Sun Direct, and the Anil Ambani-led Reliance Big TV (Big TV). It may be noted that Big TV announced closure of its operations since November 2017. The three players – Dish TV, Airtel DTH and Videocon d2h represented approximately 63 to 65 percent of the active pay-TV DTH subscribers at the end of September 2017. Please refer to figure below for subscriber share of the private DTH players as per data in the public domain:

    public://2_1.jpg

    Besides the six private pay DTH players, Doordarshan’s (DD) Free Dish DTH service is a major player in terms of subscribers with an estimated 22 million as per the numbers available in the public domain. 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. When the announced Dish TV Videocon d2h merger happens, the merged entity will probably be one of the largest DTH players in the world in terms of subscriber numbers.

    According to an E&Y report titled ‘India’s Free TV’ released in July 2017, among the DTH operators in India, DD Free Dish has grown to become the largest with its estimated 22 million subscribers which E&Y predicted could cross 40 million over the next two to three years.

    A number of reasons can be attributed to this dismal performance – two of the chief ones that are touted over the recent past by most players in media and entertainment industry – demonetisation in November 2016 and the implementation of GST. Another important reason could be that DTH is considered a premium service – by all the stakeholders in the carriage ecosystem with the resulting perception that procurement as well as monthly subscription will be premium and hence a deterrent for the consumer. While some players such as Dish TV have been making attempts to come up with packages that it perceives should attract the masses, but, results as per TRAI data seem to indicate otherwise. Yes, Dish TV is the largest private player in the country that has come up with different pricing models under different brands. Whether unwittingly or not, most of the other players present themselves as premium players and seem to have done little in that direction.

     

     

     

     

     

     

     

  • Tata Sky ties up with Ola Sunburn Festival 2017 to bring the biggest EDM extravaganza to small screens

    Tata Sky ties up with Ola Sunburn Festival 2017 to bring the biggest EDM extravaganza to small screens

    MUMBAI: Tata Sky, India’s leading content distribution platform, tied up with Ola Sunburn Festival 2017, one of the largest music festivals in the world, to bring its eclectic mix of music, entertainment, experiences, celebration and lifestyle straight to the small screens. Apart from live streaming Ola Sunburn Festival 2017, Tata Sky Mobile App will showcase nearly 500 hours of music fest content from over the years too, which will be open to all users, including non-subscribers.

    Performances by the headliners of Ola Sunburn Festival – Dimitri Vegas and Like Mike, DJ Snake, Clean Bandits, Martin Garrix, Afrojack and KSHMR – will be live-streamed on Tata Sky Mobile App. Over and above the 4 days of live streaming, prior to the event there will be a rich library of content available on demand on the app. This includes official after movies, artist interviews, exclusive backstage footage and performances from the world’s top EDM acts such as KYGO, NUCLEYA, Hardwell, David Guetta, Tiesto, Armin Van Burren and many more as well as an archive of all the past events from Sunburn season 10.

    This is the first time ever that Ola Sunburn festival, which kicks off on December 28th, will be live streamed on the Tata Sky Mobile app making it the only OTT platform covering the festival live.

    The sheer depth of content on offer, which will be archived on the app for viewing after the festival ends, will allow EDM fans to fully immerse themselves in the 11th edition of Asia’s largest music festival on-the-go wherever and whenever they like. Moreover, Tata Sky will broadcast snippets of Ola Sunburn Festival 2017 on Channel 100 too.

    Tata Sky’s Chief Communication Officer, Malay Dikshit said, “With increasing screens and the appetite of millennials to experiment with content, it is essential to reach the entertainment needs of consumers, just the way they like it. To create endearing and impactful engagement with millennials and to bring alive content across all types and sizes of screens, the Tata Sky Mobile App has partnered with the hugely popular music festival – Sunburn.”

    The Sunburn Festival, the highlight of a year-long calendar of Sunburn events, has established itself as one of the annual ‘go-to’ events for EDM fans, drawing crowds of hundreds of thousands from India and around the world every year.

    To cater to these fans, Tata Sky has lined up a number of ground-breaking experiences:

    – A breath-taking 360-degree virtual reality experience that will let fans see what the DJ sees as he cranks out his tunes, putting them at the heart of the action like never before.

    – A Graffiti Wall where fans can get their photographs clicked and jazz them up by drawing over them with personalised messages, quirky costumes or spray paint.

    – A 3D hologram of the company’s logo at various points at the venue, in order to make fans’ engagement with India’s leading content distribution platform an even more experiential one.

  • Punjab govt to levy entertainment tax on cable, DTH

    Punjab govt to levy entertainment tax on cable, DTH

    MUMBAI: The Punjab government is cracking down on errant cable ops by getting them to be accountable. It has added entertainment tax to cable and DTH connections. All local gram panchayats and state bodies will collect Rs 5 per month on a DTH connection and Rs 2 a month on cable TV from operators.

    The cabinet has approved the move. Once the governor gives the nod, the charges will begin from the date of notification.

    The state government aims to make Rs 9.6 crore via the DTH tax from 16 lakh connections and Rs 36.96 crore through 44 lah cable connections.

    Interestingly, no entertainment tax will be levied on other sources of entertainment such as cinemas, multiplexes, and amusement parks.

    The government is cracking down on cable mafias by getting them to clearly account their subscriber base. In the limelight is Fastway Transmission which is the mega player in the state and had the support of the previous Punjab government.

    When GST was introduced on 1 July, the power to collect entertainment tax was withdrawn from the state governments. This has now been given to the panchayats and municipalities by amending the seventh schedule of the constitution. Instead of requiring the centre to approve, The Punjab Entertainment and Amusements Taxes (Levy and collection by local bodies) Act 2017 was amended to get approval at the state level itself.

    Also read: 

    Supreme Court stays order on entertainment tax by LCOs

    M&E items get GST relief from 15 November 2017

    Entertainment tax: MSOs & LCOs must collect & pay, HC halts Delhi ‘action’

  • Dish TV-Videocon d2h merger date postponed

    Dish TV-Videocon d2h merger date postponed

    MUMBAI: The official date for the amalgamation of Videocon d2h into Dish TV has been moved ahead from the earlier decided 27 December 2017.

    In a release to the Bombay Stock Exchange, Dish TV said that the company would be unable to file the relevant intimation forms with the authorities, such as the Registrar of Companies and the Ministry of Corporate Affairs, by 27 December. The new date will be notified soon, the release added.

    A week ago, Dish TV and Videocon d2h were given the final nod by the Ministry of Information and Broadcasting to merge and create the world’s second-largest DTH company with 29 million customers. It was in November 2016 that the companies first announced their decision.

    The combined entity is expected to provide better after sales, distribution, and technology services.

    For the quarter ended 30 September 2017, Videocon d2h posted profit after tax (PAT) of Rs 168 million and an addition of 0.21 million subscribers. Dish TV’s PAT for the quarter was Rs 689 million and its subscriber base increased by 0.188 million.

    Also read:

    MIB clears path for Dish TV Videocon

    Dish TV reports improved operating profits for second quarter

    Recalibrating India’s DTH sector after Airtel DTH-Warburg Pincus deal

  • Recalibrating India’s DTH sector after Airtel DTH-Warburg Pincus deal

    Recalibrating India’s DTH sector after Airtel DTH-Warburg Pincus deal

    MUMBAI: For long, investors have given India’s DTH sector a pass-by saying the TV distribution sector (read cable TV) is rickety and has been digitised in a hurry to meet government mandates without too much thought and planning of the back end. Often times, DTH players have been bundled with the cable TV lot and considered a not-a-very-attractive investment.

    That was until last week.  The announcement that Warburg Pincus was picking up 20 per cent stake in Airtel Digital TV (DTH) -with around 14 million subscribers – for a staggering $350 million at a valuation of $1.75 billion or Rs 11,204-odd crore should surely come as a shot in the arm for those distributing TV and running DTH platforms.

    Right now, there are six of them: Tata Sky, Dish-Videocond2h, Airtel Digital TV, Sun Direct, DD Free Dish, and the floundering-now-waiting-to-be-resuscitated Reliance Big TV.

    Most of them have been burning cash. Folks have been saying there are too many DTH operators in India. They have pointed towards the UK that has one, the US that has just two.  And questions have been asked if India has too many vanity plays in both television and distribution.

    A senior investment analyst unwilling to be identified says last week’s Warbug Pincus vote of confidence in DTH highlights how upbeat the sector looks as an investment destination and how different it is from India’s cable TV scattered majors.

    It also raises questions around whether the Videocon management could have got a better deal when it decided to merge Videocon d2h with DishTV.  Was Videocon d2h a tad undervalued? After all, the difference in EBITDA between Airtel and Videocon d2h alone runs into Rs 170-odd  crore only. For FY 2016-17, Videocon d2h had an EBITDA of Rs 1018.1 crore as against Airtel DTH’s Rs 1222 crore. For fiscal 2017-18, Videocon d2h’s half yearly EBITDA stood at Rs 529.5 crore as against Airtel’s Rs 681.7 crore. Dish TV’s EBITDA for FY 2016-17 was Rs 972.8 crore, while it’s half yearly EBITDA for fiscal 2017-18 was  Rs 417.3 million.

    At the time of the merger, the combined entity’s valuation was placed at $2.7 billion for around 27 million subscribers of Dish TV and Videocon d2h. Combined the two would account for 16 per cent of the total 175 million hoseholds in India with around 2.80 million HD household and a combined proforma  EBITDA of  Rs 1826.2 crore. Going by the Airtel-Warburg numbers, the value of Dish TV-Videocon d2h should have been closer to $4 billion.

    Another senior industry observer opines that the Airtel-Warburg Pincus deal has opened up investors’ eyes all over the world about the growth potential in India’s DTH vertical.  The deal is probably one of the first-ever major large-ticket private equity placement deals in Indian DTH.

    What has changed in the past one year? And what is exciting investors to look at the sector differently?

    FreeDish to go away

    Indications are that the DD Free Dish threat is dissipating with the implementation of the new policy that the government has put in place with no renewals of slots taking place for private players. Industry professionals point out that the government is seeking to enhance the reach of its own channels on Free Dish.

    “It had deviated from its mandate–which was to reach out to all the rural areas where there are no transmitters and make the government’s voice reach those people. DD National was hurt because they gave slots to private GEC channels. The national channel’s viewership and revenue have since plummeted,” says one of them. “From Rs 1,400 crore in ad revenue, the figures came down to Rs 500-600 crore, out of which Rs 400 crore is from government enforced spending on the pubcaster. Its ad revenue is a measley Rs 200 crore and no private producer wants to produce for DD as it does not have the reach. With DD FreeDish likely to stop trading in bandwidth and not airing GECs, a window of opportunity for private DTH players to offer another option to rural and smaller town audiences will open.”

    Cord cutting – a hyped-up phenomenon

    Another senior industry researcher says that the phenomenon of cord-cutting has been hyped up by new entrants in the OTT space such as Netflix and their backers from the analyst community and investors in both the US and India.

    “Comparing the US and India is absolutely fraught with disaster. Even in cord cutting,” she says. “India has a very deep urban population and a very deep rural populace. The TV in the living room is still the centre piece of Indian homes; it is also moving into the bedroom. There will be no cord cutting; we will have both in India, the Netflixes as well as TV subscriptions.  Jio, too, has expanded the consumption of mobile bandwidth and nowhere is it posing a threat of cord cutting.”

    The impact of TRAI’s tariff order, GST and introduction of transparency

    The DTH industry has an estimated 90 million subscribers; the net figure is 65 million and the active is 52-55 million. The net sub number includes those subs who have been suspended for up to 120 days for non-payment; whereas actives are those who have subscribed and paid to for between zero and 30 days.

    Industry veterans point out that DTH operators are better placed to implement the TRAI’s new tariff regime which has been held up in courts.  One of them points out that the higher content costs that they have been paying to broadcasters will simply go away. “Our infrastructure allows us to permit millions of subscribers to unsubscribe online very easily and watch the channels and the shows they want to,,” says he. “Because of transparency our costs will go down with the execution of the tariff order.”

    Cable TV content costs, however, he points out are set to go up as under declarations of sub numbers to the tune of 50-60 per cent by LCOs to MSOs have been rampant. “After digitisation and GST, every connection is being reported to the MSO as everybody in the chain has to pay taxes. With this, the broadcaster will understand how many subscribers are actually there and he will charge transparently per sub basis. Based on that the fixed deals will happen,” he says.

    That should be good news for industry observers and naysayers who have been waiting like Godot for India’s TV content and distribution to unlock its true potential and value.

    Also Read:

    Warburg Pincus to buy 20% in Airtel’s DTH arm

    Reliance Big DTH to take FTA route under new management?

    STB import duty doubled to 20%

  • Reliance Big DTH to take FTA route under new management?

    Reliance Big DTH to take FTA route under new management?

    MUMBAI:  Is another free-to-air (FTA) DTH operator pawing to take off in India? If the statements made by the Pantel Technologies (the company that took over the ailing Reliance Big DTH) management in media releases are to be believed, then the answer is in the affirmative.

    Yesterday, Sri Adhikari Brothers Television Network and Pantel Technologies announced through a release on the Bombay Stock Exchange that the companies had arrived at an understanding to jointly create a bouquet of over 20 FTA channels comprising diverse genres, such as entertainment, kids, infotainment, mythological, and movies.

    The release further stated that “the varied product offering will strengthen the business of Reliance Big TV (RBTV) and will give a leg up to the largest FTA network in India. FTA channels have shown an upsurge with all the leading broadcasters showing a keen interest in the FTA product offering.”

    Pantel Technologies CMD Vijendra Singh was quoted in the release as saying: “Our main aim is to develop the entertainment appetite of the rural market and create an alternative India. With our coalition with Sab Group, we will bring together our technological proficiency and their content expertise thereby enabling us to provide good content for rural India, which is what we are committed to for their upliftment.”

    Pantel had acquired the entire shareholding of RBTV with the business on an “as-is, where-is” basis. The transaction ensured that all 1.2 million customers of Big TV would continue to enjoy uninterrupted services, the company said in a statement. The deal also ensured continuity of employment for about 500 employees of RBTV.

    Attempts to connect with SAB group managing director Markand Adhikari and Singh were not successful.

    However, if Indiantelevision.com’s interpretation of the announcement today is correct, then it should prove encouraging for private broadcasters. The  Prasar Bharti-owned FTA service FreeDish has been an unmitigated success but its future looks in doubt with conflicting reports appearing about whether the powers that be want to continue providing the slots to private players. According to sources in the public sector Prasar Bharti, minister of information and broadcasting Smriti Irani has put a full stop to the e-auction process as the government wants to populate the FreeDish platform with its own channels.

    Also Read:  Veecon Media acquires Reliance Big TV

    Sab Group, Pantel Tech join hands to launch over 20 FTA channels

    Reliance launches JioTV for web

  • A tale of two giant mergers and their India fallout

    A tale of two giant mergers and their India fallout

    MUMBAI: Two deals shook the world of media and entertainment last week: Disney-21st Century Fox and Dish TV-Videocon d2h. One was all about content and affects the world of media and entertainment globally including India. The second was all about content distribution and platform and impacts the world of television in India.

    Of course, the ripple effect of the first is oceanic for comparison with the other. So deep will be the impact of Bob Iger and Rupert Murdoch’s decision that the future will look back at the history of media as the pre and post-Disney-Fox and New Fox era.

    Nevertheless, it has created a behemoth in India: the new Disney, which now will house Star India, will have relationships with Tata Sky and the video streaming service Hotstar. The union of Disney and Fox is expected to bring in synergistic savings of close to $2 billion; some of that will be contributed by the Indian division, however marginal that might be.

    In India, the Dish TV-Videocon d2h merger has created the world’s second largest pay satellite TV distribution platform with 29 million subscribers, just behind AT&T’s Direct TV.

    Dish TV Videocon merged is also predicted to bring in large savings through rationalisation of the two companies’ manpower, backend resources and better combined purchasing negotiating power, distribution and infrastructure like offices etc. An estimate is that costs cumulatively will come down by about 10-20 per cent.

    The main leverage it will get is in content costs. Even though the Disney-Fox combine will be unmatchable internationally, in India, Dish TV Videocon could more than prove a match for it. With the expensive IPL under its belt, it will most probably have to kowtow to CEO Anil Dua and chairman Jawahar Goel’s diktats on how much they will pay out for carrying the Star India network’s signals, which includes its premium programming and sports.

    Also read:

    MIB clears path for Dish TV Videocon

    21st CF spins-off into new live news & sports co Fox

    With Star India, Disney emerges as India’s largest M&E firm

  • STB import duty doubled to 20%

    STB import duty doubled to 20%

    NEW DELHI: In a fresh bid to boost domestic production under the Make in India project, the Indian government has increased the import duty on set-top boxes (STBs) to 20 per cent, including a host of other electronic items such as TVs sets and smartphones.

    The duty hike from 10 per cent could impact the ongoing digitisation of TV services in India. Experts and stakeholders in the country’s broadcast and cable industry are still assessing the directive, including the fact whether the move is aimed at arresting imports from China.

    A ministry of finance notification dated 14 December 2017 stated the federal government was “satisfied” that the import duty on certain goods, including electronics, should be increased as “circumstances exist” that render it “necessary to take immediate action”.

    Though officially over, India’s digitisation of TV services is still a work in progress with many big MSOs admitting in private that the last and fourth phase is still far from over.

    A cable industry source highlighted that India’s DTH operators annually import about 10 million STBs, while an additional 20 million boxes approximately would still be needed to fully cover areas falling under phase IV of digitisation.

    While many India companies, including big companies like the Hero group, are manufacturing and/or assembling STBs in India, the supply, according to industry sources, isn’t enough to meet the demand. It is also expected that whenever the next round of survey is undertaken, the total number of TV homes in India would increase much beyond the figure of 183 million (as indicated by BARC India).

    Will this increase in import duty also up the cost of STBs for consumers via a mixed business model of rentals and outright purchase of the product? It’s still not clear.

    An industry source, however, said whether this government move would give a fillip to domestic manufacturing is not yet known. Most Indian DTH operators have already started importing STBs from countries like Thailand and Vietnam to take advantage of an ASEAN (Association of Southeast Asian Nations) trade pact, which is aimed at lowering trade barriers and help economic growth in general.

    STBs can be now imported by Indian companies from ASEAN countries at very low tax rate that is in the range of 2-3 per cent, the source elaborated.

    ALSO READ:

    Budget 2016: STBs exempt from basic customs duty

    DAS: Even official figures show digitization is incomplete

    DAS phase IV pace slack; MIB to make Indian STB makers

     

  • MIB clears path for Dish TV Videocon

    MIB clears path for Dish TV Videocon

    MUMBAI: Even as a new global media powerhouse was created in the US yesterday with Disney’s buyout of Fox’s entertainment assets for $52.4 billion, India’s ministry of information & broadcasting (MIB) has cleared the decks for Dish TV and Videocon d2h paving the pathway for the creation of a mammoth DTH company.

    The companies had received the green signal from the Mumbai division of the national company law tribunal some months ago after which the ministry’s approval was pending. Dish TV and Videocon d2h reported separate revenue and EBITDA numbers which at a pro-forma level add up to Rs 60,862 million and Rs 19,909 million for FY17. Following the amalgamation, the combined entity will be renamed as Dish TV Videocon Limited.  

    As on 30 September 2017, the duo together serve more than 29 million customers.

    Dish TV CMD Jawahar Goel says, ““It has been a long journey since the announcement of the agreement between the two companies a year back. We would like to thank the ministry of information and broadcasting, the national company law tribunal, the competition commission of India, the securities and exchange board of India, the stock exchanges and all other stakeholders for showing their trust in us. I would also like to express our gratitude to our shareholders for standing by us through the transaction and believing in us to take the combined entity to the next level going forward.”

    Dish TV group CEO Anil Dua says, “Together, Dish TV and Videocon d2h are going to write history as we embark on this journey of delighting our 29 million and growing customer base. It is an exciting way ahead as we get this opportunity to leverage the individual strengths of the two organisations. I feel reassured looking at the formidable combination of these two talented teams that are now going to be working together towards a shared vision and common goals.”

    Dish TV Videocon is expected to provide better synergies and growth opportunities through enhanced after-sales, distribution and technology capabilities. Aon, Deloitte and PwC have been roped in to help it with project management for seamless integration of core functions, processes and technology infrastructure.

    It has been a year-long journey for Dish and Videocon since they announced the intent to merge last November. The scheme will take effect in the coming weeks.

    For the quarter ended 30 September 2017, Videocon d2h saw PAT of Rs 168 million and an addition of 0.21 million subscribers, taking its total to 13.25 million. On the other hand, Dish TV’s PAT for the same quarter was Rs 689.6 million while subscribers increased by 0.188 million to hit 15.9 million.

    The new year is expected to be a good one for the dynamic duo. And they have every reason to celebrate.

    Also Read:  Dish TV reports improved operating profits for second quarter

    Videocon d2h reports another profitable quarter

    Dish TV–D2H merger gets NCLT approval