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  • Hathway ready for the digital big fight

    Chief executive K Jayaraman is setting the tone for Hathway Cable & Datacom‘s duel in the digital era.Part of his aggressive ploy is to expand the network in newer markets through alliances with cable operators. His proposal to them: Hathway will invest and build the digital and broadband side of the business while allowing cable operators to retain earnings from their analogue operations and carriage fees.

    Jayaraman believes this will carry appeal to cable operators who do not have the financial resources to fight off competition from digital delivery platforms like direct-to-home (DTH). He is setting up a team to map out the growth potential in non Hathway areas.

    Jayaraman is also taking the acquisition route to widen Hathway‘s footprint. Local cable networks in Chandigarh, Mohali and Kanpur were gobbled up early this year to gain foothold in new territories, all northern prosperous markets where digital cable and broadband have potential to take off.

    Such buyouts, though, will be selective and limited. But coming after years of inaction, Hathway sees an opportunity in growing along with the digital market. “Competition from DTH is good as it will change the way cable TV has been functioning and open up the digital market. If cable TV can respond positively, it will increase our ARPU‘s (average revenue per user) and correct our business models,” says Jayaraman.

    Competition also means that Hathway will have to protect its own turf as DTH gets aggressive with full content and more service providers. With Tata Sky preparing for launch soon and Subhash Chandra‘s Dish TV recently sewing a deal with SET-Discovery for a whole host of channels including Sony TV, Max, Discovery and Ten Sports, the writing is on the wall: cable will have to move in fast to migrate its customers from analogue to digital.

    Jayaraman‘s initial task is to defend Hathway‘s direct points and the creamy customers of the local cable operators. “We will have to persuade our direct customers and the top-end subscribers of our local cable operators to opt for digital cable as they will form the main target for DTH service providers,” he says.

    So far, that has been an agonisingly slow process. Hathway has managed to deploy just under 50,000 digital set-top boxes (STBs), mainly in its direct points. The distribution chain has not been supportive and, as Jayaraman says, only one-fifth of the last mile operators (LMOs) have been co-operative.

    Hathway Cable & Datacom chief executive K Jayaraman

    For energising the chain, Hathway is giving operators Rs 400 per digital STB. And on niche content, the multi-system operator (MSO) parts with a 50 per cent share on margins. Besides, operators who buy STBs on bulk are given discounts. “At the retail level, the LMOs will have to figure out what they want. It is in their interest to protect their networks,” says Jayaraman.

    But how does Hathway woo customers and make them switch from analogue to digital? One way is to offer bundled packages along with the cable internet services. The idea is to lock in customers with ARPUs over a longer period while driving sales of digital STBs.

    There are various schemes launched over a month-long period. Internet subscribers who have been sitting with Hathway for two years will be given the digital box free to use for a year. They will also have the option to buy the box for Rs 500 (box costs Rs 3375) but have to remain as Hathway‘s internet customer for the whole year.

    Boxes are available at Rs 1,000 for one-year-old customers. And for an existing internet subscriber who has not completed a year, the box is sold at Rs 2750 while Globus (retail store) coupon of Rs 500 is given along with a 20 per cent discount on Onkyo Home Theatres. New internet customers who subscribe to a minimum period of six months will have the option to buy the box for Rs 1000.

    “We have started all these initiatives for the last one month. We are rewarding our customers for their loyalty while locking them for a longer period. We feel bundling will help as DTH can‘t ptovide such services. We are in a unique position compared to the other MSOs as we have a substantial broadband subscriber base,” says Jayaraman.

    Hathway is backing up the price incentives with a dose of marketing, unprecedented in the Indian cable TV industry. Discount coupons, roadshows, FM radio stations, hoardings, interactive contests – all these media vehicles are being used to promote digital cable. And it has a staff of 70 people on sales and customer support for the digital services. “Our monthly ad spend is Rs 800000-100000. We are now selling 5,000 boxes a month which is still low, but there has been an improvement in offtake,” says Jayaraman.

    Tieing up with companies for discounts and co-branding is another exercise Hathway has started. “We are going to tie up with Citibank for a co-branded credit card which we will offer to our internet customers. For our digital cable, we are in talks with Onida for discount offers,” says Jayaraman.

    Lining up premium content is not a focus area. Hathway, though, has launched an ad-free dial-up interactive music channel I-TV through its digital services. The channel, which is currently available in Mumbai and Pune, will also be taken to other cities. Hathway has also introduced gaming on its digital services last month, for which it has selected NDS technology.

    Expanding the digital services to new cities is also part of Jayaraman‘s plans. After launching in Mumbai, Delhi, Bangalore, Hyderabad and Pune, Punjab will be the next stop.

    Hathway is creating another arsenal for its fight against DTH. Plans are on to launch VoIP (voice over internet protocol) services by the end of the fiscal. Having built a two-way infrastructure for broadband, this is a natural progression for the MSO. “We had tested for analogue telephony with Bharti but feel VoIP is a better route for us. VoIP test is going on in Mumbai. We plan to launch at least in two cities this fiscal. We can bundle cable TV, broadband and VoIP services to customers which will add to our revenue streams,” says Jayaraman.

    As the digital platforms gather force, nobody knows who will win the big fight. But, as Jayaraman says, cable will have to develop a well-rounded revenue stream if it has to survive the race.

  • Granada looks to tap opportunities in Asia

    Granada looks to tap opportunities in Asia

    MUMBAI: Looking to increase the amount of business that comes from Asia, Granada International is the latest global format and content creators to open a new office in the region.Part of the UK’s ITV Worldwide, Granada has appointed James Ross to the role of Granada regional director Asia. The appointment was made by Granada Intl MD Naine Nohr. Before the appointment, Ross was at Bloomberg Television in Hong Kong as media marketing and distribution director. He will build a local presence for Granada International and ITV Worldwide throughout the Asia-Pacific region and exploring opportunities to further develop the business.

    Nohr says, “The continuing importance of China and the Asian territories to our business has culminated in our decision to set up a regional office in Hong Kong. We are delighted to have secured James for this important role. With his background in the region, he is perfectly placed to build strategic partnerships and develop our new media sales business in Asia. Broadband and mobile phone penetration in the Far East are already the highest in the world and predicted to grow.

    “We also have strong licensing and format activity in Asia and therefore needed someone with the breadth of skills and experience that James brings, including a solid global marketing background, to develop our business in the region.”

    Ross says, “Granada International and ITV Worldwide, through its close relationship with ITV’s production teams in the UK and around the world and many top independent production companies, has some of the very best international programming available. I‘m looking forward to growing relationships with clients and partners throughout the region to offer this great content through a variety of different media.”

    Granada International recently announced a number of sales to Asian broadcasters, including Hell’s Kitchen USA to Discovery India, The Asia Food Network, UBC Thailand, Orion Media Korea, and Solar in Phillippines.

  • Digital media proliferation, resultant security threats drive DRM systems market

    MUMBAI: As organisations continue to digitise content in the current business environment, there is substantial need to emphasize the rights on its usage and establish control to avoid any loss of data. This need is expected to have a huge bearing on the enterprise digital rights management (DRM) systems market.


    Frost & Sullivan‘s report World Digital Rights Management Market, reveals that the market was worth $369.5 million in 2005 and is likely to cross the billion-dollar mark in 2011.


    As companies continue to lose sensitive data such as financial information, customer profiles and marketing collateral through e-mail or other forms of data transfer, there is a rising need to deploy systems that not only track but also control the use of information. Theft of sensitive data can not only cause a company financial loss, but can also result in brand erosion and eventually, reduce its revenue generation capacity.


    Frost & Sullivan Research Analyst Zippy Aima says, “The need to minimize liability by ensuring that only authorized users have access to appropriate documents will have a positive impact on the demand for DRM solutions. DRM solutions enable content owners to assign specific rights such as view, copy, edit and print to files that need to be protected and these rights remain active and travel with the protected file unless changed by the content owner.”


    Despite these obvious advantages, DRM vendors will find it challenging to convince companies that DRM will not severely curtail access and that organisations can meet their revenue generation goals using this technology.


    Moreover, enterprises have yet to accept DRM systems as solutions that provide security throughout the life cycle of the digital content; be it in the form of a document or a music file. DRM vendors that operate in either the enterprise or media space or both need to create more awareness about the existence of this technology and market their benefits more proactively.


    DRM systems have garnered greater attention in the media industry than in the enterprise sector. Some end users consider DRM to be a hindrance to the entertainment sector. However, the success of the iPod and iTunes is an indicator of the change in consumer buying behavior. Users are gradually regarding DRM more as ‘enabler’ than a ‘disabler’ for accessing digital content.


    Aima adds, “Apart from the shift in perception, the need to comply with regulations such the Health Insurance Portability and Accountability Act (HIPAA), Gramm Leach Bliley, and Sarbanes Oxley is also driving the market ahead.


    “Vertical markets such as financial services, manufacturing, healthcare, and energy are focusing on regulatory compliance, thus ensuring the steady uptake of DRM solutions.”

  • Pixar, Endemol to participate in cross media event in Holland

    Pixar, Endemol to participate in cross media event in Holland

    MUMBAI: Speakers of Pixar, Endemol, Talpa, Craigslist, Second Life and MySpace will headline Picnic ’06. The media event takes place in Holland from 26 to 30 September 2006.

    The event will focus on creativity in cross media content and technology, specifically in the fields of entertainment and communication.

    The speakers will include Endemol co-founder John de Mol, who also founded Talpa, Craigslist founder Craig Newmark and MySpace senior VP marketing Europe Jamie Kantrowitz. The event will showcase content delivered via TV, the Internet, mobile phones, gaming, virtual reality and music services.

    Bas Verhart who is one of the founders of Picnic ’06 says, “The Netherlands is one of Europe’s leading creative hubs in the areas of design, advertising, multimedia, gaming and architecture. We are glad to be able to host an event where creative talent can network, form partnerships and interact
    with seasoned professionals.”

  • Digital media proliferation, resultant security threats drive DRM systems market

    Digital media proliferation, resultant security threats drive DRM systems market

    MUMBAI: As organisations continue to digitise content in the current business environment, there is substantial need to emphasize the rights on its usage and establish control to avoid any loss of data. This need is expected to have a huge bearing on the enterprise digital rights management (DRM) systems market.

    Frost & Sullivan’s report World Digital Rights Management Market, reveals that the market was worth $369.5 million in 2005 and is likely to cross the billion-dollar mark in 2011.

    As companies continue to lose sensitive data such as financial information, customer profiles and marketing collateral through e-mail or other forms of data transfer, there is a rising need to deploy systems that not only track but also control the use of information. Theft of sensitive data can not only cause a company financial loss, but can also result in brand erosion and eventually, reduce its revenue generation capacity.

    Frost & Sullivan Research Analyst Zippy Aima says, “The need to minimize liability by ensuring that only authorized users have access to appropriate documents will have a positive impact on the demand for DRM solutions. DRM solutions enable content owners to assign specific rights such as view, copy, edit and print to files that need to be protected and these rights remain active and travel with the protected file unless changed by the content owner.”

    Despite these obvious advantages, DRM vendors will find it challenging to convince companies that DRM will not severely curtail access and that organisations can meet their revenue generation goals using this technology.

    Moreover, enterprises have yet to accept DRM systems as solutions that provide security throughout the life cycle of the digital content; be it in the form of a document or a music file. DRM vendors that operate in either the enterprise or media space or both need to create more awareness about the existence of this technology and market their benefits more proactively.

    DRM systems have garnered greater attention in the media industry than in the enterprise sector. Some end users consider DRM to be a hindrance to the entertainment sector. However, the success of the iPod and iTunes is an indicator of the change in consumer buying behavior. Users are gradually regarding DRM more as ‘enabler’ than a ‘disabler’ for accessing digital content.

    Aima adds, “Apart from the shift in perception, the need to comply with regulations such the Health Insurance Portability and Accountability Act (HIPAA), Gramm Leach Bliley, and Sarbanes Oxley is also driving the market ahead.

    “Vertical markets such as financial services, manufacturing, healthcare, and energy are focusing on regulatory compliance, thus ensuring the steady uptake of DRM solutions.”

  • ETV launches IPTV pilot test in Thailand

    ETV launches IPTV pilot test in Thailand

    MUMBAI: ETV, a global Internet distribution network offering sports and entertainment content over the Internet, has commenced a pilot test of its IPTV service in Thailand

    Through its partnership with Media Partners International, ETV will be deploying the ETV On Demand test system to an initial test market of 1000, growing to 10,000 test users throughout Thailand. The test period will last for up to 90 days, and will aggregate both technical information and customer feedback on the delivery system, the content and ease of use of the system.

    It is expected that the ETV On Demand full service launch will begin by the end of the third quarter in Bangkok. At this point, MPI will market the system throughout Thailand, a country with a growing population of more than 65 million. MPI has projected users to grow by 50,000-100,000 monthly once it rolls out the ETV On Demand system.

    The full ETV On Demand system launch is expected to take place later this year, and through early 2007. Potential viewership in these markets approximates 600 million.

    ETV’s proven broadband delivery technology affords consumers their choice of entertainment and sports programming 24 hours a day over the Internet, with full-screen broadcast resolution on a guaranteed bandwidth backbone. The company’s complete end-to-end solution encompasses the latest Internet television technology, exclusive sports and entertainment content and worldwide broadband distribution.

    MPI is a vertically integrated media company operating in the filmed and recorded entertainment and sports events production, licensing, and distribution industries. MPI’s chairman Sitichai Nuanmanee said, “The Pilot Test with ETV positions our two companies to dominate the broadband viewership market throughout Southeast Asia and India.”

  • China National Radio’s web portal launches soccer site

    China National Radio’s web portal launches soccer site

    MUMBAI: International media content provider Global Broadcast Networks (GBN), and China National Radio’s (CNR) web have launched a UK football website in Mandarin.

    The website covers UK Football, and will support the programmeUK Soccer Review for which GBN provides content, sponsorship and advertising. The programme is broadcast on CNR Voice of China which claims to be the most listened to radio station in the world.

    The website will be hosted by CNRNET, China National Radio’s portal. There is a link from CNR’s homepage to the website, which attracts around one million unique users per day.
    China National Radio Website Centre head Yang Guiming says, “CNRNET’s dedicated website for UK Soccer Review is a veritable feast of UK soccer for web users, meticulously produced in
    collaboration with CNR-1 Voice of China and GBN . CNRNET is delighted to be working with GBN, to provide first-hand information from the UK, bringing abundant content to the “UK Soccer Review / Yingchao Fengyunlu” website.”

    “CNRNET is hosted by CNR, the national-level radio station in China, which possesses a distinct broadcasting style. It is China’s largest audio broadcasting website, and via the Internet, strives for China’s voice to be heard worldwide”

    The website’s total audio data is two terabytes. At present, with an average of 14 million hits a day, and unique visitors reaching one million a day, CNRNET’s influence is always expanding.”

    GBN CEO Sean Curtis-Ward says, “The launch of the website opens up a unique and hitherto unavailable opportunity for our programme sponsors to reach a vast audience. The site
    and the radio programme will cross-promote and complement each other. The link on CNRNET’s front page is a ringing endorsement of the programme. We are grateful for the skill and technical expertise that China National
    Radio’s web team have bought to the design and implementation of this
    project”

    Sky Media have also been appointed to provide advertising and sponsorship services for the website along with advertising and sponsorship
    of the UK Soccer Review programme on a global basis. The weekly half-hour radio is on-air 52 weeks a year, for a planned three years.

  • PMO sets up panel to develop policy paper on radio, TV & digital tech

    PMO sets up panel to develop policy paper on radio, TV & digital tech

    MNEW DELHI: The Prime Minister’s Office (PMO) has set up a committee to develop a policy paper for radio, television and digital technology to be covered under the 11th Five-Year plan.

    The high-profile panel’s first meeting will be held on 21 June. B.A.G Infotainment CEO and convener of Association of Radio Operators in India Rajiv Mishra and Times of India group’s AP Parigi are among the private sector nominees to the working group.

    The following activities will be covered by the newly-constituted group:

    # To suggest approaches for formulation of plans and programmes for radio and TV, keeping in view the emerging trends in technology, convergence issues, IP multimedia and IT-enabled media applications.

    # To recommend measures for optimum expansion of transmission network of radio and TV through appropriate technologies to hitherto uncovered areas.

    # To put in place the basic policy framework, fiscal incentives and workout a mission mode project for moving from analogue transmission to digital transmission before 2015.

    # To develop a mission mode project for implementation mobile media solutions by establishing requisite infrastructure for transmission in, say, 700 MHz band in association with mobile service providers and technology partners.

    # To identify excess spectrum and bandwidth arising through migration to digital transmission and work out strategies for its redeployment/farming.

    # To assess the total investment required in hardware and to suggest measures to stimulate greater private investment in this sector.

    The members of this group also include Prasar Bharati CEO, director-generals of Doordarshan and All India Radio, head of Broadcast Engineering Society of India Ltd, Planning Commission’s advisor of communication and information and IT software industry body Nasscom’s chairman Kiran Karnik.

  • CCTV uses Tandberg Television MPEG-4 AVC HD system for Fifa coverage

    MUMBAI: Tandberg Television has announced that it is enabling China Central Television (CCTV) to provide its viewers with high definition coverage of live games from the Fifa 2006 World Cup in Germany.


    CCTV is using Tandberg Television’s award-winning MPEG-4 AVC HD encoding and decoding solutions to maximize the bandwidth of its DS3 international link and its local delivery network.


    CCTV is one of the 150 operators from 145 countries that have broadcasting rights from Fifa’s Host Broadcast Services (HBS). Live feeds from matches in 12 German cities are being broadcast around the world, including the final in Berlin on 9 July. For almost a year, CCTV has been broadcasting an HDTV service using a Tandberg MPEG-2 head-end system, states an official release.


    “Broadcasting the World Cup in high definition is not only a magnificent achievement in its own right, but is also an excellent preparation for the upcoming 2008 Olympic Games in Beijing,” says CCTV chief engineer Ding Wen Hua. “The implication for large-scale broadcasting in HD is immense and this is a significant event in the Chinese, and Asian, television industry.”


    As well as using Tandberg’s advanced HD compression, CCTV is the first broadcaster in Asia to use the new professional multi-format MPEG-2/MPEG-4 AVC SD/HD decoder, the Tandberg RX1290, which is being launched at Broadcast Asia this week.


    he Tandberg RX1290 receiver is the world’s first multi-format MPEG-2/MPEG-4 AVC decoder, capable of processing and decoding more video formats than any other receiver and enabling network operators and broadcasters to deliver content from studio to studio and across networks to regional head-ends and affiliates, the release adds.

  • CCTV uses Tandberg Television MPEG-4 AVC HD system for Fifa coverage

    CCTV uses Tandberg Television MPEG-4 AVC HD system for Fifa coverage

    MUMBAI: Tandberg Television has announced that it is enabling China Central Television (CCTV) to provide its viewers with high definition coverage of live games from the Fifa 2006 World Cup in Germany. 

    CCTV is using Tandberg Television’s award-winning MPEG-4 AVC HD encoding and decoding solutions to maximize the bandwidth of its DS3 international link and its local delivery network.

    CCTV is one of the 150 operators from 145 countries that have broadcasting rights from Fifa’s Host Broadcast Services (HBS). Live feeds from matches in 12 German cities are being broadcast around the world, including the final in Berlin on 9 July. For almost a year, CCTV has been broadcasting an HDTV service using a Tandberg MPEG-2 head-end system, states an official release.

    “Broadcasting the World Cup in high definition is not only a magnificent achievement in its own right, but is also an excellent preparation for the upcoming 2008 Olympic Games in Beijing,” says CCTV chief engineer Ding Wen Hua. “The implication for large-scale broadcasting in HD is immense and this is a significant event in the Chinese, and Asian, television industry.”

    As well as using Tandberg’s advanced HD compression, CCTV is the first broadcaster in Asia to use the new professional multi-format MPEG-2/MPEG-4 AVC SD/HD decoder, the Tandberg RX1290, which is being launched at Broadcast Asia this week.

    he Tandberg RX1290 receiver is the world’s first multi-format MPEG-2/MPEG-4 AVC decoder, capable of processing and decoding more video formats than any other receiver and enabling network operators and broadcasters to deliver content from studio to studio and across networks to regional head-ends and affiliates, the release adds.