Category: Software

  • Trai meets broadcasters on CAS, firm on channel MRPs

    NEW DELHI: Broadcast regulator Telecom Regulatory Authority of India (Trai) Thursday held discussions with industry stakeholders, but was firm that a la carte pricing of channels is inevitability.


    Still, the regulator seemed sympathetic to a revenue share formula in favour of MSOs and broadcasters over and above a certain price.
     
    Thursday’s meeting that Trai held with some broadcasters was more of a formality as the regulator made it clear to broadcasters present that maximum retail price (MRP) of TV channels under CAS regime is coming whether some like it or not.


    According to information available with Indiantelevision.com, most participants were against a la carte pricing of channels and pitched for wholesale prices, which would give the cable operators a chance to fix some margins for themselves.
     
    However, Trai was categorical that as per a government mandate MRP of a TV channel under a CAS regime has to be decided and would be finalised by 31 August 2006; industry feedback notwithstanding.


    Those who attended Thursday’s meeting included representatives from Star India, Sony Discovery One Alliance, Global Broadcast Network, Zee Network and Indian Broadcasting Foundation.


    Trai has been mandated by the government to fix the norms, including pricing of individual channels, under a CAS regime, which is slated to be rolled out in the south zones of Delhi, Kolkata and Mumbai from 1 January 2007.


    The government on 31 July issued a notification setting 31 December, 2006 as the deadline for the three metros of Delhi, Mumbai and Kolkata to be fully “CAS delivered” as a Delhi court had desired.


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  • Dish TV CEO Sunil Khanna quits

    MUMBAI: ASC Enterprises has announced that Dish TV CEO Sunil Khanna has decided to move out of the company on completion of his two-year contract at the KU-band direct-to-home platform, promoted by Subhash Chandra.


    According to an official release issued, the Dish TV board had offered Khanna a renewed contract but he has decided to pursue other interests.


    Information available with Indiantelevision.com indicates that while Khanna will be “remaining in the broadcast sector, he will be taking up a new challenge”.


    Khanna has been with the Zee Group since its inception. He started his career with the group while driving the distribution venture Siticable. He subsequently spearheaded the pay TV business and lead Zee Turner. Before joining Dish TV as CEO, he also had a stint as president of Zee Telefilms.


    At Dish TV, his contribution has been in developing and building the first addressable digital platform. During the last 15 months, Dish TV accelerated the process of subscriber acquisition and now is established as the leading digital brand with 1.3 million subscribers.


    Dish TV, today offers 160 satellite channels along with other value added services and has string network of 8,000 distributors/dealers.

  • Tata Sky and Zee Turner haggle on price

    NEW DELHI: Tata Sky’s talks with Zee Turner for its bouquet of channels have got stalled on the issue of price.


    While India’s second pay digital platform Tata Sky has evinced interest in the first two of the three bouquets of Zee Turner for Rs 42, the latter is insisting all its 29 channels should be taken.
     
    According to sources close to the negotiations, Zee Turner has conveyed that it’s ready to give all its channels to Tata Sky’s DTH platform for Rs 74 per subscriber, which is 50 per cent of the price that cable operators pay for the channels.


    Bouquet 1 of Zee Turner comprises Zee TV, Zee Cinema, Zee News, Zee Studio, Zee Bengali, Zee Gujarati, Zee Marathi, Zee Punjabi, Cartoon Network, Reality TV, CNBC, CNN, Zee Café, Zee Trendz, ETC, ETC Punjabi, Zee Jagran, Zee Smile, Zee Telgu and Zee Music..
     
    The second bouquet includes HBO, Pogo, Awaaz, VH1 and Zee Business. Zee Turner is soft bundling Zee Sports at a price benefit.


    The third bouquet, called Breakfree, consists of Zee Action, Zee Premier and Zee Classic, which air movies of different genre and are primarily available on Dish TV DTH platform.


    Interestingly, Zee Turner wants to keep Zee Sports out of the negotiations with Tata Sky, saying a deal for the sports channel — holders of cricket rights for matches to be played by India on non-ICC recognised venues — could be done separately.


    According to the sources, Zee Turner has reasoned that its demand is based on a recent ruling of a disputes tribunal in Dish TV vs Star case wherein Star was asked to make available its channel to Dish at Rs 27 per subscriber, which is 50 per cent less than the price cable ops pay.


    Zee Turner has further said that in the Dish vs Star case, when Dish had wanted select channels of Star, the Hong Kong-based broadcaster was unwilling to accede to the proposal.


    Extending the same logic, Zee Turner has conveyed to Tata Sky that it would have to take all its channels.


    However, Tata Sky is only interested in the first two bouquets of Zee Turner for a price of Rs 42 per subscriber per month.


    On August 8, while announcing the commercial launch of Tata Sky service in 300 cities, company’s MD and CEO Vikram Kaushik had admitted that talks with Zee Turner had not been concluded.


    Amongst the 55-odd channels being offered by Tata Sky presently to its subscribers, Zee and Turner channels like Zee TV, Zee Sports, Cartoon Network and Pogo and some third party products like HBO, Reality TV, Awaaz and CNBC TV18 are conspicuous by their absence.


    Country’s first pay DTH platform, the Subhash Chandra-owned Dish TV, boasts of 1.25 million subscribers.


    Pubcaster’s DD Direct+ claims a subscriber base of 3.5 to 4 million for its subscription-free service of free to air channels.


    Also Read:


    Tata-Sky approaches TDSAT against Zee over bouquet pricing


    Tata Sky launches DTH service; STB price Rs 3999, basic subscription Rs 200

  • Cable, DTH locked in ad war

    MUMBAI: The ad war between direct-to-home (DTH) service providers and cable TV operators has started. Soon after Dish TV ran a full page campaign on print asking viewers to stop watching cable TV, operators have retaliated with the tagline “Cable TV – Service at your doorstep.”


    The most obvious attack is on pricing. Dish TV, the ad says, offers all channels without the Star bouquet at Rs 300 per month. After adding up the 10 per cent licence fee and taxes (entertainment and service), the monthly bill in Mumbai will work out to Rs 412. Then there is the hardware and rental cost for the set-top boxes (STBs) which have to be paid in advance. Besides, there are no discounts for multi-TV homes, the ad states.
     
    Cable prices in the conditional access system (CAS) areas, on the other hand, will begin from Rs 77 per month for the free-to-air (FTA) channels. The pricing for the pay channels is yet to be decided as broadcasters have to fix the rates. As for the set-top boxes, the early bird offer is Rs 2000. “With judicial intervention and government regulation now being brought in place, you too will reap benefits of CAS once it takes off from 1 January,” the ad says.


    Regarding service, cable TV has run even on days of calamities. Most of the consumer complaints are pricing related issues which are linked to pay channel hikes. “Cable networks also provide internet service. How come you never faced price related issues when dealing with the same cable network,” the ad states.
     
    The cable TV industry is “geared to usher in a new digital cable revolution with over 140 channels, radio services, games and on screen electronic programme guides.”


    The cablewallah may have finally woken up to the competition from alternate digital distribution platforms. The battle, as they say, is just beginning.

  • MTV Networks acquires Atom Entertainment for $200 million

    MUMBAI: MTV Networks (MTVN), a division of Viacom, Inc., has announced a definitive agreement to acquire Atom Entertainment, Inc., a portfolio of four leading online destinations for casual games, short films and video, for $200 million.


    Acquiring Atom Entertainment advances the company‘s multiplatform strategy of building an engaging universe of music, gaming, entertainment, news and interactivity for targeted audiences. The acquisition is subject to customary closing conditions and is expected to close in the third quarter 2006.


    Atom Entertainment is a pioneer in online entertainment with four brands in both games and video: Shockwave.com and AddictingGames.com are two of the internet‘s largest casual gaming sites, offering nearly 1,500 free and downloadable games. AtomFilms.com and AddictingClips.com are two premier film and video sites for short-form comedy, animation, drama and user-generated content.


    Adding Atom Entertainment to MTV Networks‘ overall portfolio fits squarely with the company‘s strategy of super-serving its targeted, global audiences with a relevant and innovative video experience online. Following MTVN‘s recent purchases of XFIRE, Y2M, GameTrailers.com, IFILM and Neopets, this acquisition demonstrates the company‘s continued commitment to being a premier multi-platform media company, uniquely positioned across every screen, states an official release.


    Viacom CEO Tom Freston says, “This acquisition is right on the money with our digital strategy. It adds great scale with users, improves our growing casual gaming position, and brings a world-class digital video library and a fantastic management team.”


    “Atom Entertainment is a best in class and dynamic property, with brands that have dedicated, passionate followers and content that resonates with our global audience,” adds MTV Networks chairman & CEO Judy McGrath. “This acquisition is in line with our business strategy of being a leader in the digital space and connecting with consumers on every platform and device they use.


    Shockwave.com and AddictingGames.com are part of the large and rapidly growing business of online casual gaming and will complement MTVN‘s roster of casual gaming communities, including Nick.com and Neopets. By including these two Atom sites, MTV Networks aspires to be a leader in the casual gaming business, with more than 50 million casual gamers playing more than 400 million games a month. In addition, AtomFilms.com and AddictingClips.com further expands the online video available across MTVN‘s 24 broadband channels and the company‘s user-generated content offerings, the release adds.


    “MTV Networks is a global leader in entertainment, and we are thrilled to join their family of brands,” says Atom Entertainment CEO Mika Salmi. “Leveraging MTVN‘s platform will accelerate our growth and create new opportunities for both consumers and advertisers. We are proud of the business we‘ve built and look forward to working together with MTVN to lead the way in the casual gaming and short-form video content business

  • National Geographic offers podcasts

    MUMBAI: US broadcaster National Geographic now makes it possible for consumers to take a guided walk through the streets of Venice, experience an African safari and hear the week’s top science and nature news, with audio and video podcasts for free download.


    Available at www.nationalgeographic.com/podcasts as well as on iTunes and Yahoo!, the first offering of podcasts aims to inspire audiences to care about the planet by tapping into a wide range of newly produced and existing content from National Geographic. Of the 10 National Geographic offerings on the iTunes storefront, eight are in the top 75 downloads for this week.
     
    Free audio podcasts from National Geographic include:


    – National Geographic News — The week’s top science and nature news, world music features, interviews with innovators, audio quizzes and a “Photos on the Radio” feature


    – Afropop Worldwide — Lively, in-depth reports on the music and culture of Africa and the Americas and their transatlantic connections


    – Traveler Magazine’s ‘50 Walks of a Lifetime‘– Some of the greatest walking tours, including San Francisco, Tribeca (NY), Paris and Venice, selected by editors of National Geographic Traveler and narrated by radio and television travel authority Rudy Maxa


    – National Geographic World Talk — Interviews with the world’s most compelling scientists, explorers, photographers and thinkers


    – The Best of National Geographic Magazine –The best of 118 years of adventure, cultures and creature features, including the award-winning Sights & Sounds


    – National Geographic Minutes — Minute-long reports on nature and science


    Free video podcasts include:


    – Wild Chronicles — Rare access to unknown places and in-depth reporting from the public television series Wild Chronicles, hosted by Boyd Matson and made possible by National Geographic Mission Programs and Lindblad Expeditions and presented by WLIW New York


    – National Geographic Video Shorts — Videos from National Geographic, including Mysteries of Lost Civilisations, The World’s Most Unusual Foods, Extreme Healing, The World’s Toughest Jobs and spotlights on countries around the world


    – National Geographic Atmosphere — Features video with ambient sound that exposes users to exotic settings and locations


    – National Geographic Spotlight — Featuring one-on-one interviews with superstars from around the globe. From Brazilian crooners to Senegalese superstars, Spotlight lets the musicians speak for themselves.
     
    National Geographic digital media VP content operations, Betsy Scolnik says, “For more than a century National Geographic has crossed borders in its storytelling. Podcasting is shaping up to be the ultimate tool for crisscrossing the globe, making it easy for everyone — from the armchair traveler to the on-the-go adventurer — to access great stories through video, audio, music and still photos.”

  • Fox Interactive Media inks $900 million deal with Google

    MUMBAI: News Corporation’s Fox Interactive Media and Google Inc. have inked a multi-year search technology and services agreement whereby Google will be the exclusive search and keyword targeted advertising sales provider for Fox Interactive Media’s growing network of web properties including MySpace.com.
     
    Under the terms of the agreement, Google will be obligated to make guaranteed minimum revenue share payments to Fox Interactive Media of $900 million based on Fox achieving certain traffic and other commitments. These guaranteed minimum revenue share payments are expected to be made over the period beginning in the first quarter of 2007 and ending in the second quarter of 2010.


    The agreement calls for Google to power web, vertical and site specific search for MySpace.com and the majority of Fox Interactive Media properties. Google will be the exclusive provider of text-based advertising and keyword targeted ads through its AdSense program, for inventory on Fox Interactive Media’s network. Google will also have a right of first refusal on display advertising sold through third parties on Fox Interactive Media’s network.
     
    The integration of Google’s services including consistent search navigation across Fox Interactive Media’s network of properties is slated to begin in the fourth quarter 2006 and will provide users with access to Google’s industry leading search capabilities as well as text and display advertising from its global advertiser base.


    “Our partnership with Google underscores News Corp’s continued evolution to become a powerful force in the digital media marketplace. To have come this far and gained this much momentum in just over a year is truly remarkable. This is an exciting time in our history as a forward thinking media company and this is just the first of many steps we plan to take with Google. We look forward to expanding our relationship into many new areas over years to come,” said News Corporation president and COO Peter Chernin.


    “We believe that our innovative technologies will be of real benefit to Fox Interactive Media’s growing number of users. MySpace.com is a widely acknowledged leader in user-generated content and incorporating search and advertising furthers our mission of making the world‘s information universally accessible and useful,” said Google CEO Eric Schmidt.


    “This deal is the next step in our evolution as a significant interactive player. Forming a strategic partnership with one of the most innovative companies in the world to expand our business together, monetize our platforms effectively and leverage our combined scale will provide substantial growth for our businesses,” said Fox Interactive Media president Ross Levinsohn.


    “This agreement demonstrates our commitment to bring the same innovation to monetizing user-generated content that we brought to search advertising. We look forward to other opportunities to partner with News Corp. to the benefit of its community,” said Google senior vice president, global sales and business development Omid Kordestani.


    In addition to MySpace.com, Fox Interactive Media properties that will benefit from the Google integration include online videogame and entertainment site IGN, pro sports network Scout.com, site for movie lovers Rottentomatoes.com, men’s lifestyle site AskMen.com; as well as Gamespy.com, Gamespyarcade.com, Fileplanet.com, Direct2drive.com, Teamxbox.com, 3dgamers.com, Gamestat.com, Cheatscodesguides.com and Gamermetrics.com.

  • Next-Gen technologies drive growth in consumer telecom market: Study

    MUMBAI: As Internet Protocol (IP) technology becomes more pervasive in the telecommunications industry, next-generation services is increasingly driving growth in the consumer market. Although regulatory constraints and dwindling fixed-line revenues are key challenges for service providers, renewed focus on 3G (Third Generation) services, convergence and multimedia should enable them to stay ahead of competition.


    New analysis from global growth consulting company Frost & Sullivan, Service Providers‘ Consumer Strategies Revealed in Asia Pacific, reveals that 3G, VoIP (Voice over Internet Protocol) and WiMAX (worldwide interoperability for microwave access) are perceived as key revenue generators for service providers. In fact, most service providers have invested heavily into deploying these technologies, states an official release.
     
    “Growth in the Asia Pacific consumer telecommunications market will revolve around wireless, IPTV (Internet Protocol television), and other multimedia services,” explains Frost & Sullivan research analyst Aravind Venkatesh. “Moving forward, service providers will continue to leverage on key next-generation technologies such as WiMAX, IPTV and VoIP to offer innovative service packages to customers.”


    Due to declining fixed-line revenues, service providers in developed markets have to consider next-generation technologies such as 3G, wireless broadband access, IPTV and VoIP to drive revenue growth. While service providers in China and India are anxious to deploy 3G services, their counterparts in South Korea, Singapore and Hong Kong are looking at media-rich 3G applications to boost revenues.
     
    The key challenge for all service providers in the consumer space is to maximize voice revenue and increase ARPU (average revenue per user) in the midst of increasing competition.


    Intense competition and product commoditization have resulted in service providers finding it difficult to increase ARPU and reduce customer churn. Regulatory barriers delaying the deployment of 3G services in markets like India and China have also fettered service providers. Fixed-line service providers face the dual challenge of declining fixed-line revenues and increasing fixed-to-mobile substitution, the release adds.


    “Regulatory barriers and spectrum allocation issues have been major hindrances to the rapid deployment of 3G services in some developing markets in Asia,” explains Venkatesh. “Delays in introducing regulatory frameworks have hampered the launch of innovative services based on new access technologies.”


    Innovative value-added services and lower price points are key differentiators in the fixed-line telephony segment. Fixed-line service providers should add value to their core services by offering bundled applications at competitive prices. Service providers in high growth markets such as India, China, Thailand and the Philippines can also explore new revenue streams by exploiting the largely untapped rural segment.


    The service providers‘ consumer strategies revealed in Asia Pacific study is part of the Communications Services subscription. It evaluates the competitive landscape, including key partnerships and alliances, service portfolio and product strategies, and marketing and pricing strategies of seven leading telecom service providers in the region. The study also offers an in-depth analysis of the service providers‘ growth strategies in the consumer segment. The leading service providers examined as part of the study are: Bharti Airtel, Chunghwa Telecom, KT, PCCW, StarHub, Telstra and True Corporation.

  • DirecTV US 2Q revenues increase 12% to $3.3 billion

    MUMBAI:The DirecTV Group Inc. today reported that the second quarter revenues increased 10 per cent to $3.52 billion and operating profit nearly doubled to $977 million compared to last year‘s second quarter.


    The Group reported second quarter 2006 operating profit and net income both more than doubled to $741 million and $459 million, respectively, when compared to the same period last year.


    Earnings per share were $0.36 compared with $0.12 in the same period last year. These operating results include the effect of $253 million of equipment that DirecTV US capitalized during the quarter under its lease program, which was implemented 1 March 2006, according to an official statement.
     
    “Similar to recent quarters, DirecTV US generated excellent financial results highlighted by a 12 per cent increase in revenues to $3.3 billion, a 93 per cent increase in operating profit before depreciation and amortization to $977 million and a nearly tripling of cash flow before interest and taxes to $450 million,” said DirecTV Group president and CEO Chase Carey.
     
    “In many ways, the results in the quarter reflect our strategy to target higher quality subscribers. For example, although gross subscriber additions of 863,000 and net additions of 125,000 in the quarter were below expectations, it‘s important to note that we added 11 per cent more higher quality gross subscribers in the quarter compared to last year,” said Carey.


    “This trend — which is driving both the top-line and bottom-line financial results — is primarily due to the ongoing changes we‘re making to refine our credit policy and dealer network. These factors played an important role in reducing DirecTV‘s monthly churn rate from 1.69 per cent to 1.59 per cent this quarter.”


    “In addition, customers are buying more premium services such as high definition programming and digital video recorders which is contributing to the strong ARPU growth of 5.6 per cent in the quarter.”


    On 1 March 2006, DirecTV US introduced a set-top receiver lease program primarily to increase future profitability by providing DirecTV US with the opportunity to retrieve and reuse set-top receivers from deactivated customers. Under this new program, set-top receivers are capitalized and depreciated over their estimated useful lives of three years.


    The amount of cash DirecTV U.S. paid during the quarter ended 30 June 2006 for leased set-top receivers totaled $253 million — $153 million for subscriber acquisitions and $100 million for upgrade and retention.

  • Interoperability wouldn’t support VAS, interactivity: Kaushik

    NEW DELHI: With the arrival of the second pay DTH player in the market, a buzz word would be interoperability, meaning whether consumers can switch from one service to another effortlessly.


    Though Indian government norms specify that all DTH systems need to be interoperable for consumer’s convenience, in reality it may not be so.


    Vikram Kaushik, MD and CEO of Tata Sky, which launched its commercial service on 8 August, hinted that interoperability may be limited.


    “Interoperability may not support interactive and value added services,” Kaushik admitted to a specific query on the issue today in Delhi.
     
    Tata Sky consumer marketing head Vikram Mehra explained that for seamless interoperability of all services, including interactive services, DTH service providers must have similar software.
    “In the absence of some (proprietary) software, value added services of a DTH platform may not get supported when a consumer changes the service provider. Yes, the TV channels would be available and that’s what government rules specify,” Mehra elaborated.


    What does this mean?


    If an existing Dish TV consumer, wants to switch over to Tata Sky service and hopes just a replacement of the smart card in the set-top box would give him all the features of Tata Sky, then he would have to think again.


    Features like interactive news and sports and some value added services like movie-on-demand of Tata Sky would not be available by just inserting a Tata Sky smart card in a set-top box bought/rented from Dish TV.


    For the records, Siebel will manage customer relationship management of Tata Sky, while Kenan will support the billing system, SAP will be responsible for enterprise resource planning and Sun Microsystems will provide technology infrastructure.


    The boxes would be sourced from Thomson and Korean company Humax.


    Both the companies will be manufacturing the set-top boxes in India, Kaushik said, which would help in keeping the price line under control.


    At present country’s first pay platform, Dish TV, boasts of 1.25 million subscribers, while pubcaster Doordarshan’s subscription-free DD Direct+ has a reported consumer base of 3.5 million.


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