News Headline

Regulation puts skids on distribution ramp ups

Published

21 years ago

January 10, 2005

It was once a whole lot easier. Three years ago, broadcasters would press for more subscribers and rates, multi system operators (MSOs) would ask for an increase from their franchisees and last mile operators would demand a hike in monthly cable fees from customers.

The year 2004 did not put a stop to that, but made this process much more difficult. Blame it on Pradip Baijal for setting the mood even before the year began. The Telecom Regulatory Authority of India (Trai) chairman came out with a recipe which stakeholders in the value chain found unpalatable: a freeze on subscription rates with effect from 26 December 2003.

Not to say that the distribution business did not grow in the year. But it was at a controlled speed, estimated at a 8-10 per cent growth. Ernst & Young is more bullish and puts the size of the subscription revenue market at Rs 100 billion, up 22 per cent from Rs 81.79 billion in 2003. This is expected to inflate to Rs 120 billion in 2005.

The way Ernst & Young has arrived at this figure is complex. But put simply, it has divided the cable and satellite households (C&S) into three categories – top eight cities including the metros, the smaller towns and the rural households (Table 1).

Subscription Revenue – 2004
Classification	Monthly Average Revenue per User (in Rupees)	Total (in Rupees)
Eight towns	210	30 billion
Smaller towns	180	45 billion
Rural towns	140	25 billion
Source: Ernst & Young

“Higher penetration and more number of cable TV subscribers have contributed to the growth. During the course of the year, new pay channels also have come,” says Ernst & Young head of media and entertainment industry practice Farokh Balsara.

Consulting firm KPMG is more conservative, putting the total subscription revenues in 2004 at Rs 79 billion. This is 21.5 per cent up, from Rs 65 billion a year ago. In 2005, subscription income will grow fatter at over Rs 100 billion if new delivery platforms like direct-to-home (DTH) and Internet Protocol Television (IPTV) take off. “The growth is due to a combination of factors. There has been an increase in subscribers. Besides, we have had an annualised impact on rate hike. With new subscribers coming up, the starting monthly fee has gone up. As a result, the average ARPU has gone up,” says KPMG national industry director for ICE Rajesh Jain.

The industry estimate, according to sources, is, however, lower at Rs 65 billion. The C&S households grew to 45 million, up from 42 million.

How much have the broadcasters taken home?

Ernst & Young puts it at Rs 10 billion in 2004, climbing up 20 per cent to Rs 12 billion in 2005. Says Balsara, “Broadcasters occupy 10 per cent of the total subscription revenue. We don’t see this composition changing this year as well.”

Now look at what KPMG has to say. Broadcasters have a combined distribution income of Rs 14 billion, up 16.6 per cent from Rs 12 billion a year ago. This is 18 per cent of the total subscription revenues. And in 2005, broadcasters will enjoy a still higher share, if fuelled by new revenue streams from delivery platforms like IPTV and DTH.

“Broadcasters and MSOs will have an increase in share of total subscription revenues if DTH, IPTV and conditional access system take off. Introduction of addressable systems will mean larger shares for organised players in the value chain,” says Jain (Table 2 for MSO and LCO revenue).

Cable TV Revenue
Year	MSO (in Rupees)	LCO (in Rupees)
2003	1 billion	52 billion
2004	3 billion	62 billion
Source: KPMG

The actual figure could be somewhere in between, according to industry estimates. Going by revenue figures in the financial year 2003-04 (companies work on financial year targets), broadcasters are estimated to have earned Rs 11.6 billion with Star India the clear leader at Rs 3.3 billion. Sony’s earnings are at Rs 2.85 billion, followed by Zee-Turner’s domestic subscription income at Rs 2.17 billion and ESS close to Rs 2 billion. Ten Sports’ subscription revenue is pegged at Rs 300 million. The southern Sun network pay channels would make up for most of the balance amount.

In the current fiscal, the broadcast industry predicts a less than 5 per cent growth. This is despite the 7 per cent rate hike Trai has allowed across the value chain with effect from 1 January 2005. The new pay channels and cable TV subscribers should fuel small growth.

Star’s distribution revenue will grow faster than the other bouquets. The reason: it has added the two Walt Disney channels in its new bouquet. Star has also managed a marginal increase in subscriber declarations because of the minimum guarantee (MG) deals it has struck with big cable operators in the northern region. Though the MG arrangements came into shape in October, Star will also have a longer time to reap its gains from a rate hike and the distribution of new channels. Star’s Fiscal ends in June, unlike the other media companies who have a March-ending period.

Sony-Discovery will have a flat growth as indicated by senior officials in the organisation, despite having the ICC Champions Trophy. The loss of premium movie channel HBO will neutralise whatever small gains it may have made from cricket and the distribution of new channels.

Zee-Turner’s growth will come from HBO and the earnings could touch over Rs 2.5 billion this fiscal. Zee’s subscription revenue for the first half of the financial year is Rs 1.35 billion, but this includes its direct-to-home (DTH) revenues. Dish TV has accumulated 1.60 lakh DTH subscribers, growing at a snail’s pace for over a year. In 2004, Zee-Turner set up a rural team to focus on rural distribution.

Hathway CEO K Jayaraman & ESPN Managing Director RC Venkateish: At loggerheads

For ESPN Star Sports (ESS), it can turn out to be a bad year as it struggles to protect its subscriber base. Already the two sports channels are off Hathway and Asianet, two big MSO networks promoted by Rajan Raheja, and RPG in Kolkata over commercial agreements. Hathway is asking for an almost 70 per cent reduction in cash outgo, even as ESS has a much weaker cricket content in 2005. ESS’s contracts with other cable networks are also coming up for renewal at this crucial period. Its subscription revenue this fiscal could come down to Rs 1.8 billion according to estimates, and could further fall depending on how long Hathway is prepared to fight against it and how well it manages to sew up other distribution deals.

Ten Sports, of course, will be the worst hit on the distribution front. Sources say Ten Sports has practically stopped collecting from cable operators since July and is without a proper distribution team. After moving out of Modi Entertainment Network (MEN), Ten Sports is waiting to hop on to a distribution platform and is in talks with Zee-Turner, ESS and Sony. Though blessed with better cricket content for the next two years, its distribution system is in a terrible mess.

The distribution network of television content had a serious problem at hand in 2004. The challenge for broadcasters was to design new strategies as they realised the business needed new economics; the old models wouldn’t work.

So what were the broadcasters up to in 2004?

Broadcasters’ answer to beat a flat growth line in the year was to add channels into the distribution bouquet. Star launched two channels Utsav and One while adding Hungama TV and the Disney channels into the bouquet later in the year. Sony added Nik and MTV while losing HBO from 1 January 2005. Zee-Turner brought in Pogo and in the New Year HBO and VH1. The new bouquet of Pogo, HBO, VH1, Zee Business News and TV18 Group’s new Hindi business channel will be priced at Rs 40 with a Rs 15 distribution margin to cable operators.

MGs also became a new trend, but is seen more as a short term tactic to push growth. Star got an increase in subscriber declarations in places where it struck such deals. Sony had MG arrangements in Bangalore and Gujarat. Incidentally, Star and Sony switched off service to Siticable, a wholly owned subsidiary of Zee Telefilms, for almost six months due to non payment of dues. But MGs are not sustainable in a market situation where rate hikes in monthly cable fees are not possible. Zee-Turner, however, stayed away from this game.

Broadcasters also had to pay steep carriage fees to find space on cable networks. Perhaps, this is the first year when pay channels from strong distribution bouquets were also asked to secure their positions. The problem is going to increase this year as more and more channels crowd the market. Cable operators are already operating at full capacity. So the slots are precious until cable networks upgrade their systems. Hathway Cable & Datacom and InCablenet have, in fact, launched digital cable service in a small way.

The year also saw broadcasters interacting more with local cable operators on the ground as a drive to improve recovery. In some towns of Uttar Pradesh, for instance, Star and Sony united for this purpose. Collections from cable operators generally improved in the market as in Sony’s case where it was driven by the two cricket tournaments (Holland Cup and Champions Trophy) it had on its Max channel.

Though broadcasters are launching new channels, 2005 will be perhaps the toughest year for getting them properly distributed on the cable networks. Even Disney is unable to get carriage of any sort after three weeks of launch. Zee-Turner, selling its old bouquet along with its new bundle led by HBO, is yet to get a deal in place with Asianet. We will see more such friction in the distribution chain as the year progresses.

No fresh investments, MSOs focus on recoveries

During the year, MSOs put their energy behind improving collections rather than expansion of territories. The truce among the MSOs (brought about by the exigencies of survival rather than being a united force) allowed them the leeway to put pressure on their local operators to clean up the payment process. Carriage fees also saw a surge as channels jostled for space on overloaded networks. Besides, the Trai rate freeze relieved them to some extent of an alarming payout increase to broadcasters.

Some of the MSOs have jumped aggressively into broadband play, realising it can become a strong future revenue stream. With cash flow getting affected by Trai’s rate regulation, cable, however, remained starved of investments.

Last mile cable operators faced no fresh threat from conditional access system and continued to take away a chunk of the subscription revenue.

In 2005, MSOs will be saddled with increased payouts to broadcasters while finding it difficult to pass on the cost to their subscribers. Broadcasters are enlarging their distribution bouquet through the launch of new channels. Cable networks will find it difficult, for instance, to resist channels like Walt Disney.

The biggest challenge for cable networks in the New Year is to expand channel capacity. The only way they can do that is to get digital cable TV up and running. They could face competition from direct-to-home (DTH) service providers and telecom operators like Reliance Infocomm who are planning a triple play entry.

This is going to be the year the broadcasters and MSOs will have to learn to live under a rate regulated regime and plan their growth in subscription business. How well they do that may have a profound effect on how the future shapes up. As 2005 begins, there is hope that new opportunities in television content delivery and distribution will emerge.

Related Topics:multi-system operators (MSOs)

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Awards

Hamdard honours changemakers at Abdul Hameed awards

Published

4 weeks ago

February 7, 2026

indiantelevision.com Team

NEW DELHI: Hamdard Laboratories gathered a cross-section of India’s achievers in New Delhi on Friday, handing out the Hakeem Abdul Hameed Excellence Awards to figures who have left their mark across healthcare, education, sport, public service and the arts.

The ceremony, attended by minister of state for defence Sanjay Seth and senior officials from the ministry of Ayush, celebrated individuals whose work blends professional success with a sense of public purpose. It was as much a roll call of achievement as it was a reminder that influence is not measured only in profits or podiums, but in people reached and lives improved.

Among the headline awardees was Alakh Pandey, founder and chief executive of PhysicsWallah, recognised for turning affordable digital learning into a mass movement. On the sporting front, Arjuna Awardee and kabaddi player Sakshi Puniya was honoured for her contribution to the game and for pushing women’s participation onto bigger stages.

The cultural spotlight fell on veteran lyricist and poet Santosh Anand, whose songs have echoed across generations of Hindi cinema. At 97, Anand accepted the honour with characteristic humility, reflecting on a life shaped by perseverance and hope.

Healthcare honours spanned both modern and traditional systems. Manoj N. Nesari was recognised for strengthening Ayurveda’s place in national and global health frameworks. Padma shri Mohammed Abdul Waheed was honoured for his research-backed work in Unani medicine, while padma shri Mohsin Wali received recognition for his long-standing contribution to patient-centred care.

Education and social development also featured prominently. Padma shri Zahir Ishaq Kazi was honoured for decades of work in education, while former Meghalaya superintendent of Police T. C. Chacko was recognised for public service. Goonj founder Anshu Gupta received an award for his dignity-centred rural development initiatives, and the Hunar Shakti Foundation was honoured for empowering women and young girls through skill development.

The Lifetime Achievement Award went to former IAS officer Shailaja Chandra for her long career in public healthcare and governance, particularly in the traditional systems under Ayush.

Speaking at the event, Hamdard chairman Abdul Majeed said the awards were a tribute to those who combine excellence with empathy. “These awardees reflect Hakeem Sahib’s belief that healthcare, education and public service must ultimately serve humanity,” he said.

Minister Seth struck a forward-looking note, saying India’s young population gives the country a unique opportunity to become a global destination for learning, health and wellness by 2047.

The ceremony also featured the trailer launch of Unani Ki Kahaani, an upcoming documentary starring actor Jim Sarbh, set to premiere on Discovery on 11 February.

Instituted in memory of Unani scholar and educationist Hakeem Abdul Hameed, the awards have grown into a national platform that celebrates those building a more inclusive and resilient India. For one evening at least, the spotlight was not just on success, but on service with substance.

MAM

Why the best campaigns today start with insights, not ideas

Published

4 weeks ago

February 7, 2026

indiantelevision.com Team

MUMBAI: For decades, creative storytelling has been the cornerstone of brand communication. The “big idea” amplified through catchy jingles, striking visuals, and memorable hooks was once the gold standard for relevance and recall. Creativity defined presence, and the loudest, boldest campaigns often won attention.

But the marketing landscape today looks very different.

Audiences are more exposed, more discerning, and far less patient. They are inundated with messages across platforms, formats, and creators, often encountering hundreds of brand touchpoints in a single day. In this environment, creativity alone especially when untethered from real consumer truths is no longer enough to move behaviour. Great ideas are abundant. Meaningful impact is not.

This is where insights matter.

The difference may seem subtle, but it is fundamental. An idea represents what a brand wants to say. An insight reflects what the audience is already thinking, feeling, or experiencing. The most effective campaigns emerge not from cleverness alone, but from the intersection of these two forces.

From creativity to relevance

As the marketing ecosystem becomes increasingly saturated, consumers are growing immune to inflated claims and surface-level storytelling. Even beautifully crafted campaigns can fail if they are disconnected from lived realities. The gap between a brand’s internal enthusiasm and the audience’s actual sentiment can be the difference between attention and indifference.

Insights help bridge this gap. They force brands to pause, listen, and observe to understand emotions, behaviours, cultural contexts, and contradictions. Instead of trying to be remembered through louder branding, insight-led campaigns allow audiences to see their own experiences reflected back at them. When a campaign articulates a problem that feels personal, relevance is created. Trust follows.

Insight is interpretation, not information

It’s important to distinguish between data and insight. Data tells us what is happening. Insight explains why it is happening. While data is measurable and structured, insights are interpretive and dynamic, shaped by real-time sentiment and human behaviour.

Modern consumers are full of contradictions. They demand authenticity while remaining deeply aspirational. They want brands to take a stand but expect nuance, not instruction. They seek transparency, yet are drawn to curated narratives. These tensions are not obstacles, they are opportunities. When understood correctly, they can shape communication that feels timely, credible, and human.

Some of the most effective campaigns today are born not in isolated brainstorm rooms, but through listening to audiences, creators, editors, online communities, and cultural signals. Insights often exist in blurred patterns, but once identified, they can redefine how a brand connects.

A recent campaign we executed for Domino’s illustrates this shift clearly. The brief wasn’t to make a pizza look bigger or louder. Instead, it was rooted in a simple behavioural truth: in Tier 2 and Tier 3 markets, sharing food is an emotional act tied to family, celebration, and value perception. The “Big Big 6-in-1 Pizza” became a canvas for this insight. The campaign leaned into regional voices and real sharing moments, allowing people to show how they experienced the product rather than being told why they should buy it. Influencers and celebrities amplified genuine usage, not scripted endorsements. The impact from engagement to footfall to sales came not from a clever idea, but from understanding how people relate to food in their everyday lives.

Shifting the starting point

Today’s consumer landscape demands a shift in perspective from “What should the brand say?” to “What does the audience need to hear right now?” This marks a move away from inward-led marketing toward communication shaped by behaviour, emotion, and cultural relevance.

Brands leading today are keen observers. They notice when perfection stops resonating. They sense when luxury shifts from aspiration to excess. They recognise when influencer content begins to feel repetitive and trust erodes.

Virality, too, is often misunderstood. It is not a strategy to chase, but an outcome. Campaigns rooted in insight do not aim to go viral; they aim to resonate. When content reflects something familiar, a shared truth, emotion, or tension, it travels organically because people see themselves in it.

Ideas attract attention. Insights build connection.

The evolving role of PR

For PR professionals, this shift has redefined success. Coverage volume alone no longer tells the full story. The more meaningful questions today are: Did the communication influence behaviour? Did it align with cultural conversations? Did it address a real consumer pain point?

Insight-first thinking allows these questions to be answered at the planning stage, rather than corrected midway through execution.

In a world where formats and platforms will continue to evolve, what remains constant is the power of authentic communication. The strongest campaigns today do not begin with a brainstorm, but with observation, interpretation, and empathy. That is not just better marketing, it is more responsible, resilient, and meaningful brand-building.

Brands

Ahmad Muneeb elevated to VP – HR centre of excellence at Zepto

Published

4 weeks ago

February 7, 2026

indiantelevision.com Team

MUMBAI: Zepto has elevated Ahmad Muneeb to vice president – HR centre of excellence, placing him at the helm of the company’s total rewards, executive compensation and organisational effectiveness as the quick-commerce firm powers through a high-growth phase.

The move follows his stint as senior director of the HR COE, where he played a central role in preparing the company for IPO readiness while scaling its people analytics capabilities. During this period, Muneeb helped align complex performance management structures with more streamlined and scalable employee experience frameworks.

In his new role, he will steer the design of total rewards strategies, executive compensation planning and organisational design, while also overseeing performance management, employee experience initiatives and people analytics programmes.

Before joining Zepto, Muneeb spent nearly three years at Meesho, where he held multiple rewards and HR business partner roles. Earlier in his career, he worked as a senior rewards consultant at Mercer, advising high-tech clients on compensation benchmarking, pay structures and talent-focused reward frameworks.

He began his hr journey at Cognizant, where he supported compensation programmes for nearly two lakh employees across India and worked on m&a compensation alignment and skill-based pay initiatives. Prior to moving into HR, Muneeb started his career as a software engineer at Netcracker, bringing a technical grounding to his people strategy work.

With a mix of consulting rigour, start-up agility and enterprise-scale experience, Muneeb’s elevation signals Zepto’s continued focus on building robust people systems as it races towards its next phase of growth.