Cable TV

MSOs on distribution challenges post NTO

Published

6 years ago

January 8, 2020

MUMBAI: The internet has given choice to consumers to select packages and watch content of their choice. A rapid increase in the viewership on mobile and OTT platforms on a daily basis has become a threat to the DTH and cable distribution ecosystem. Apart from the internet, competing with broadband services and OTT is another challenge post NTO. The experts from the broadband and cable industry gathered at Video and Broadband Summit (VBS) 2019 in December, organised by Indiantelevision.com to discuss innovative measures taken by companies to stay ahead of the curve.

The Remediation Company founder & partner Shyamala Venkatachalam, moderated the panel discussion on 'The Distribution Challenge' at VBS 2019. The panelists Den Networks Ltd CEO SN Sharma, Kerala Communicators Cable Ltd. (KCCL) ex-CEO and SCTE India GC member Shaji Mathews, Metro Cast Network India Pvt Ltd promoter Nagesh Narayandas Chhabria, Tata Sky Ltd chief financial officer G Sambasivan, SITI Networks Ltd chief executive officer Anil Malhotra and Fastway Transmissions Pvt Ltd consultant (strategic planning) Peeush Mahajan shared their views on how distribution companies are innovating to stay ahead of the curve. They also briefed the audiences on the measures adopted to counter relentless disruption.

"Technology is unstoppable and customer is the king. As lot of innovations keep on happening, the business has to adapt the changes and has to focus on two things – customer viewing experience and customer service. For making viewing experience the best, we are investing very heavily on our backend and the distribution pipeline and will be increasing the bandwidth capacity manifold,” said Sharma.

He further continued, “In India, after a lot of HD channels were launched, still only 20 per cent of subscribers are using the HD platform. As we have taken a conscious decision to only deal with HD boxes from the new year, we will ensure that HD content will be available for every subscriber. Even if consumers are not willing to subscribe for HD channels because of the higher subscription amount, we will ensure that the consumer gets the SD service which will be as good as HD experience.”

"The movement from SD to HD has been much below the consumer’s expectations. The movement to OTT and hybrid boxes has happened over a period of time. As today the content is produced in HD or even higher than that in 4K, lot of MSOs are setting up HEVC transmission and they will also be introducing boxes with capacity of higher than higher definition. The process has to be gradual, which also depends on the willingness of the players to invest in the business," said Mathews.

On the issue of interoperability of STB, he said that the concept of comparing the STP with a mobile phone is not right, as the STB is a sim card and not the mobile phone. So, the whole concept needs to be overlooked.

The challenge for MSOs is that it is not viable for them to go to village areas and give connections to around 200 – 300 houses. “The main concern now is that 15 – 20 per cent of our existing customers are not coming back to us post NTO. This is because of the communication gap between the LCO and the customers. To bridge this gap we have to educate the LCO by training them. Also communicating through social media, direct marketing or door to door marketing is an option to convince customers," said Chhabria.

He also said, “MSOs should get their existing customer base back, which is around 15 – 20 per cent. The NTO model has been stabilised and people can now invest. Two years ago it was a non-viable business, but now we can show the investors that it is a viable business and ask them to invest as there is an opportunity to earn money.”

Sambasivan shared his view on distribution challenges. He said that as per the India projection report, OTT is growing very fast and the number of hours of video consumption is going up. DTH and cable industry need to be worried as 90 per cent consumption is on mobile. But OTT is not an immediate threat to the DTH and the cable industry because along with OTT, consumers are also watching television. The viewership on television in the last five years has not decreased. OTT may be a threat after around ten years.

Throwing some light on the post NTO challenges faced by the industry, Malhotra said that we are facing two challenges, first is two competitions. The first competition we are facing from broadband services, which is a linear way of giving signals compared to STBs. To provide SD, HD or 4K content we need to provide STBs which will decode the signal and provide content in the respective definitions. The second competition from OTT is device agnostic because in the broadband, whether it’s 4K, HD or SD, all signals are distributed similarly. The quality bandwidth decides what kind of viewership experience a customer has.

“The second challenge is that suddenly there are internet users in the country. As per TRAI’s published data, 64 crore is half of the population of India. This population buys smartphones and we do not know how much of this population has moved away from linear TV to internet. From a content perspective, the kind of content which is popular is the adult site and is popular on OTT platform and not allowed to be beamed on the linear TV. The unfair competition will be that if the customer demands a personalised content, which is viewable on the OTT platform, but not viewable on the linear video platform despite having user enabled features on the device. Also the password sharing piracy is a challenge as more than one person can view the same content on different devices. So, overall technological aspects have to be considered,” he said.

Sharma added that the message for MIB is that piracy is one of the issues which need to be addressed as lot of investments have been done at the state level for implementing NTO. DOT, few years back had addressed the issue by appointing state level cells. The other issue is the linkage of a la carte price with the bouquet price.

Mahajan thanked TRAI for implementing a la carte and said that TRAI has given a choice to the customers. In 2018, 98-99 per cent of the customers were on suggestive bouquets offered MSOs and DPOs. In last 8-9 months, a big migration has happened from 2-22 per cent from bouquet to a la carte and it keeps on happening on a daily basis. We have to put in more efforts to educate the subscribers and train the LCOs, as LCOs are the key people who can generate a need for a la carte. DPOs have put in a lot of effort and will continue in future also. By the end of 2020, 35-40 per cent consumers should move on a la carte.

Malhotra said that as per the regulations, TRAI has done a perfect thing by giving a choice to the customers. Unfortunately, the customer needs a la carte along with a package of their suitability. It is very difficult for a customer to choose between 800 channels and make a package of its own. But packaging is important and there are three ways of doing it. Packaging happens at a broadcaster level and if the customer wants the broadcaster package, then the distributor cannot dismantle the package.

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Cable TV

Den Networks Q3 profit steady despite revenue pressure

Published

3 weeks ago

January 19, 2026

indiantelevision.com Team

MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.

Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.

Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.

The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.

In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.

Cable TV

Plugging along as Hathway tunes in steady profits this quarter

Published

4 weeks ago

January 17, 2026

indiantelevision.com Team

MUMBAI: In a quarter where staying connected mattered more than moving fast, Hathway Cable and Datacom kept its signal steady. The cable and broadband major reported a net profit of Rs 21.7 crore for the December 2025 quarter, marking a clear improvement from Rs 13.6 crore a year earlier, even as pressures persisted in parts of its operating portfolio.

For the quarter ended December 31, 2025, revenue from operations stood largely flat at Rs 536.6 crore, compared with Rs 511.2 crore in the same period last year. Including other income of Rs 21.1 crore, total income rose to Rs 557.7 crore, reflecting incremental gains despite a competitive media and connectivity landscape.

Profitability improved on the back of disciplined cost control and higher contribution from associates. Profit before tax increased to Rs 28.2 crore, up from Rs 19.1 crore in Q3 FY25, aided by Rs 3.9 crore in share of profit from associates and joint ventures. After tax, earnings for the quarter climbed nearly 60 per cent year-on-year.

Over the nine months ended December 31, 2025, Hathway reported a net profit of Rs 71 crore, compared with Rs 57.7 crore in the corresponding period last year. Total income for the nine months came in at Rs 1,677.3 crore, up from Rs 1,599.8 crore, while profit before tax rose to Rs 94.7 crore from Rs 84.2 crore.

A closer look at the segments shows a familiar split story. The cable television business remained under pressure, reporting a segment loss of Rs 11.4 crore for the quarter, though this narrowed sharply from the Rs 16.6 crore loss seen a year ago. In contrast, the broadband business returned to the black, delivering a modest but positive contribution of Rs 4.2 crore, helped by associate income. Dealing in securities continued to be a bright spot, generating Rs 14.7 crore in quarterly profits.

Costs stayed broadly contained. Pay channel costs, the single largest expense, rose to Rs 287.4 crore, while depreciation and amortisation stood at Rs 74 crore. Finance costs remained negligible at Rs 0.2 crore, keeping leverage risks in check.

Hathway’s earnings per share for the quarter improved to Rs 0.12, up from Rs 0.08 a year ago. The company maintained a strong balance sheet, with total assets of Rs 5,302.4 crore and total liabilities of Rs 848.9 crore as of December 31, 2025.

While structural challenges persist in the traditional cable business, the numbers suggest Hathway is slowly recalibrating its mix trimming losses where needed, leaning on associate income, and keeping the broadband engine ticking. For now, the company may not be racing ahead, but it is clearly staying tuned in to profitability.

Cable TV

Signal drop Tejas Networks’ numbers stay patchy in a volatile quarter

Published

1 month ago

January 10, 2026

indiantelevision.com Team

MUMBAI: In telecom, even the strongest signals face interference and Tejas Networks Limited’s latest numbers show just how noisy the airwaves remain. The Tata Group-backed networking firm reported unaudited standalone revenue of Rs 305.72 crore for the quarter ended December 31, 2025, up sequentially from Rs 261.37 crore in the September quarter, but sharply lower compared with the Rs 2,642.05 crore clocked in the year-ago period. The topline recovery, however, was overshadowed by a pre-tax loss of Rs 303.20 crore, widening from a Rs 473.03 crore loss in the previous quarter, and reversing a Rs 211.06 crore profit reported in the December 2024 quarter.

After tax, the company posted a loss of Rs 196.89 crore for Q3 FY26, compared with a loss of Rs 307.17 crore in Q2 FY26 and a profit of Rs 165.42 crore a year earlier. For the nine months ended December 31, 2025, Tejas Networks reported revenue of Rs 769.02 crore and a loss after tax of Rs 697.97 crore, a sharp swing from a Rs 512.67 crore profit in the corresponding nine-month period last year. The numbers reflect a year marked by execution challenges rather than demand collapse.

Costs remained the dominant spoiler. Total expenses for the December quarter stood at Rs 616.50 crore, driven by elevated material costs, employee expenses and provisioning. The company also flagged several one-offs and adjustments: a Rs 9.85 crore provision linked to the implementation of new labour codes, ₹24.35 crore in warranty provisions, and reversals related to inventory obsolescence. Earlier quarters had already absorbed heavy charges tied to contract manufacturing losses, design changes and write-downs, the hangover from which continues to weigh on profitability.

Tejas reiterated that it operates as a single reportable segment focused on telecom and data networking products and services, offering little insulation from sector-wide volatility. While revenue momentum has stabilised sequentially, the contrast with the previous financial year remains stark. For context, the company closed FY25 with audited standalone revenue of Rs 8,915.73 crore and a profit after tax of Rs 450.66 crore, underscoring how sharply the operating environment has shifted in FY26.

The results were reviewed by the audit committee and approved by the board on January 9, 2026, but they leave investors with a familiar question: when does recovery turn structural rather than episodic? For now, Tejas Networks appears to be in reset mode, balancing execution clean-up with cost discipline. In a sector where margins can be as fragile as fibre strands, the next few quarters will matter as much as the signals the company sends to the market.