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Tag: Broadcasters

  • Guest Column: The way forward for DPOs, broadcasters in the new TRAI tariff regime

    Guest Column: The way forward for DPOs, broadcasters in the new TRAI tariff regime

    During the early 2000s, cable television began to spread rapidly across India and the cable distribution business rapidly shifted from the early muddled phase towards a more corporate structure which put emphasis on the rationalisation of business practices, billing system transparency and technical know-how.

    The number of cable television subscribers in India grew from 4 lakh in the early nineties to more than 91 million by the end of 2009, the number of satellite television channels grew from a handful in 1992 to around 550 channels in 2010 and there was a significant increase in the number of distribution platform operators. However, the landscape of the cable industry completely transformed when the ordinance to digitise analogue cable systems was passed. The ordinance mandated the digitalisation and it got completed over a period of 6 years from 2011 to 2017 in four phases. Phase I covered the four metro cities of Delhi, Kolkata, Mumbai and Chennai, followed by 38 cities in phase II, all remaining urban areas and rest of India were covered in phase III and phase IV.

    The benefits of digitalisation for consumers as compared to analogue are multi-fold including refined quality of transmission, better sound clarity, and the choice to pay for select channels. Post digitalisation, we have witnessed significant consolidation/merger/closure of DPOs in the market with the number of distribution platforms reduced to 1200 from around 6000.

    The introduction of the New Tariff Order from 1 Feb 2019 focuses on “Consumer Choices” and will completely change the manner of channel selection, pricing and reach which is likely to disrupt existing revenue models of both broadcasters and DPOs.

    New regime and its impact

    Prior to the implementation of the new tariff order, the DPOs and the broadcasters were mostly operating on a fixed fee model. However, the new regime is likely to have a significant impact on the channel reach, channel share, ratings of non-driver channels and the overall revenue. The key to address these challenges for securing the correct revenue share amongst other things would entail consumer education, constant monitoring of consumer preferences and realignment of the bouquet packaging strategies taking into account consumer preferences.

    Under the new regime, consumers will have the option of paying only for channels they want to watch and can drop other channels from their list and hence, the subscriber base will now solely depend on the communication between the DPOs and the end consumer, and in the event of any communication gap, the last mile consumer will not subscribe to the channels and these may result in significant erosion of subscriber base impacting the revenue of DPOs and the broadcasters.

    Also, broadcasters and DPOs will have to upgrade or completely revamp their internal credit risk management and operating systems used for billing, settlements and disputes to capture complex and multiple combinations of channels that a consumer would choose from.

    Under the MRP regime, the revenues of MSO & broadcasters will be solely dependent on the subscriber numbers reported by LCO to MSO and IPTV, DTH and MSO to broadcasters. As subscriber reporting requirements have changed from reporting opening & closing of the month to opening & closing for all the weeks of the month, it requires significant system and process upgrades at DPOs’ end. Till such time, revenues of MSOs and Broadcasters remain in jeopardy. It would be imperative to closely monitor the situation from March 2019 onwards when DPOs are expected to submit their first subscriber report.

    Way forward

    The best solution for broadcasters and the DPOs to earn their fair share of revenues would be to continuously monitor the ground, track channel reach & availability and adapt to changing consumer preferences on a real-time basis. Such requirements can be effectively managed by mapping every DPOs headend catering to each and every last mile consumer, getting complete ground information on packages and channels being offered to consumers through field surveys and regular transport stream (TS) recording cum analysis at consumer points which will help to determine the placement of the channels and their encryption status !

    *DPOs include IPTV, DTH, MSO and LCOs.

    (The author is managing director in Risk Assurance Practice of PwC, India. The views expressed here are his own and Indiantelevision.com may not subscribe to them) 

  • Hathway, DEN, Siti reveal packs under new TRAI tariff order

    Hathway, DEN, Siti reveal packs under new TRAI tariff order

    MUMBAI: Major DTH players and MSOs have started updating new channel and package pricing as per the new TRAI tariff order. Soon after major broadcasters announced new rates, DPOs are taking swift action making it easier for consumers to choose their desired channels. Last month, TRAI gave an additional one month for the implementation of the new regime to make the transition of consumers smoother.

    Essel group promoted Siti Networks has revealed five suggestive packs ranging from Rs 52.5 to Rs 166 excluding GST. The number of channels also varies in the suggestive packs. While the first one has 18 channels, the highest number of channels i.e 49, is available on the fifth pay pack. 

    Another national MSO Den Networks has revealed over 10 suggestive packs leaving more options from consumers. The prices of the packages range from Rs 199 to Rs 500 inclusive of taxes. DEN Intro Pack priced Rs 199 mostly comprises free to air (FTA) channels barring a few pay channels in the news and infotainment space while DEN Titanium Pack priced at Rs 500 offers a large number of channels across genres.

    Leading MSO Hathway Cable and Datacom has also updated several new packs including the base pack containing 100 FTA channels along with regional add-ons and genre add-ons. Moreover, Hathway has created different packages for different markets like Maharashtra, Karnataka, West Bengal, Telangana, Tamil Nadu and Hindi speaking markets.  Both the Prime and Royal packs offered by the operator include major channels from all the genres while the Royal packs leave much more option. 

    Two DTH players i.e., Dish TV and Airtel Digital TV, have published the prices of individual channels. However, along with segregating the available channels on its network on the basis of genres, Dish TV has highlighted different packs from broadcasters in another list. Airtel Digital TV has only provided the pricing of the individual channels on its website. The DTH operator is offering no discount on the price which is offered by the broadcasters and just passing on the channels by adding tax to the same pricing.

  • TRAI extends deadline to 31 Jan for migration to new tariff regime

    TRAI extends deadline to 31 Jan for migration to new tariff regime

    MUMBAI: Stakeholders of India’s broadcast sector can now breathe a sigh of relief as the Telecom Regulatory Authority of India (TRAI) has extended the date of customer migration to the new tariff regime by a month to 31 January 2019.

    With 28 December, the initial deadline for the tariff order implementation neared, the DPOs in particular were highly concerned how the transition would pan out.

    Thanks to the decision, now DPOs can seek options from consumers till 31 January. Customers will be migrated as per their choice from 1 February.

    "We had a meeting of broadcasters, DTH operators, and MSOs today [Thursday]. Everyone confirmed their readiness to implement new regulations. However, they requested that some more time may be given to seek options from subscribers for smooth and interruption free migrations," TRAI secretary Sunil K Gupta was quoted as saying by a PTI report.

    The regulatory body may consider holding weekly review meetings with industry representatives to monitor the progress of the transition of TV viewers, a Hindu Business Line report stated. The report also added that the DPOs are likely to be asked to submit weekly reports on the number of subscribers who have migrated to the new subscription plans in accordance with the new tariff order.

    “It is definitely a step forward from the original plan. Once the bouquet prices are declared by DPOs, only then consumers can migrate to the new plan. These are all interlinked – broadcaster prices have come based on which the DPOs have to declare their prices, they need time for that. Once they (DPOs) declare, consumers need time for selecting a plan. So there needs to be a logical gap between the declaration of prices by broadcasters and then a gap for the DPOs to declare their prices and then time for consumers to choose also,” KCCL CEO Shaji Mathews told Indiantelevision.com

    Earlier this week, TRAI also squashed all rumours about a channel blackout on 29 December. TRAI asserted that it advised all broadcasters, DPOs and LCOs to ensure there is no disruption of TV services. TRAI also added then that it was working on a detailed migration plan for all subscribers.

    “It will help consumers and DPOs as well as broadcasters. This is not only required for DPOs, if there’s no time consumers will not choose new packages or channels which means there will be a blackout of channels and then broadcasters will suffer as DPOs will not be able to collect money. This is a step towards avoiding a blackout,” he added.

    The new tariff order will give the power of choice to the hand of consumers. While until now consumers only watch the channels offered by DPOs, the new order allows them to select their desired TV channels and pay accordingly. Currently, all the broadcasters have updated their channel and package pricing.

  • TRAI secretary Sunil K Gupta explains need for tariff order

    TRAI secretary Sunil K Gupta explains need for tariff order

    GOA: After several twists and turns, Telecom Regulatory Authority of India’s (TRAI) new tariff order crossed its last legal hurdle in the Supreme Court on 30 October. Now, with less than one month left for the implementation of the regulations, several questions still concern the industry stakeholders. On the second day of the Video and Broadband Summit 2018, TRAI secretary Sunil K Gupta spoke on the new regime via Skype and answered questions raised by stakeholders. He also threw light on the initiatives taken by the regulatory body to make consumers aware of the radical changes.

    Indiantelevision.com needs to clarify here that since the VBS session was held in Goa last month, a development has taken place in the form of TRAI, last week, filing a fresh petition in the Supreme Court for review of the Madras High Court observations on a cap of 15 per cent discount on bouquet prices of TV channels.

    Gupta started the session explaining the need to have a comprehensive regulatory framework for dealing with the problems of the broadcasting sector. Talking about the problems faced by different stakeholders, he cited the example of the issues faced by MSOs and LCOs, broadcasters as well as consumers.

    In the case of MSOs and LCOs, the biggest problem was discriminatory treatment by broadcasters. As a result, it was almost impossible for smaller MSOs to get the content at the appropriate price from the broadcasters because the agreements were not transparent. Moreover, the problem was concerning customers as well due to the different rate of channels at different platforms. They didn’t have the power to choose and were forced to take channels provided by the DPOs.

    Broadcasters also faced various difficulties due to the lack of transparency in the entire ecosystem. While they were giving free-to-air channels, they felt that, in many cases, those channels were being actually charged. This menace reduced the probability of use of those channels resulting in fewer viewers. As the revenue of FTA channels is highly based on viewership, the business was getting affected.

    “Similarly, there were problems with broadcasters also as many time broadcasters were complaining that the content which is given to the consumers is not of high quality. Secondly, there are certain channels which were demanded by few stakeholders and because of the cap such channels could not be launched as there were serious issues particularly if you look at channels that are a requirement of a select class of stakeholders,” he said.

    “So considering all these issues and also the issues of non-transparency, we have come up with a very comprehensive framework. The comprehensive framework gives rights to the broadcasters to price their channels properly and transparently communicate to consumers,” he added.

    Gupta also explained that TRAI has made arrangements so that price of a particular channel can clearly be displayed on the electronic programme guide. He later added that due to the new regime, subscribers would have choice of channels as well as all the information. Moreover, Gupta said subscribers can get all the related information on the website of the MSOs in the tab which is called ‘customer corner’.

    “As far as MSOs are concerned, there were issues that they did not have funds to upgrade their network for good quality experience to consumers. Now, there will be dedicated money for MSOs and LCOs so the network can be upgraded and good quality service can be given to consumers. Broadcasters also have the freedom to choose what price they can get from subscribers and also appropriately optimise the prices so that they can get maximum revenue of advertisement as well as subscriptions from the consumers,” he added.

    Responding to a question from the audience, Gupta said there is no change in the license of the LCOs and they are supposed to take registration form from the post office only. But he also mentioned that they are working with MIB so that the process can be made online.

    Many MSOs and LCOs raised the concern that it looks like they are being reduced to merely a commissioned agent. Gupta said the functions of LCOs and MSOs have properly been described under the Model Interconnect Agreement (MIA) and the Standard Interconnect Agreement (SIA) divisions.

    “Here the framework is that a channel price which is being prescribed is the broadcaster’s understanding of the price of the particular channel. Now 20-35 per cent discount which is being given is to do certain work for that particular channel. Here, Rs 130 is being given differently and separately to MSOs and LCOs as they are providing the connectivity to consumers and consumers are getting the service from them. In addition to that, the portion of the discount on the content which is either 20 per cent or anything in between 20-35 per cent will also be accounted for sharing between the MSOs and LCOs,” he explained rejecting the claim that MSOs are only about to get commissions.

    TRAI is also taking measures to inform consumers properly about the upcoming change. There will be big campaigns as well as meetings in cities like Delhi, Jaipur, Hyderabad, Kolkata, Mumbai and Bhopal. In addition to that, TRAI is also going to start a programme to inform the consumers. Even jingles will be played on radio and other media to grab consumer attention.

  • Trai vs. Star case: next SC hearing on Sept. 18

    Trai vs. Star case: next SC hearing on Sept. 18

    MUMBAI: The Supreme Court has deferred the hearing of Star India’s petition against TRAI tariff and inter-connect order to 18 September 2018 due to insufficient time. This is the fourth time in this month that the hearing has been deferred. Despite the impending ruling, several broadcasters have already published their RIOs.

    Zee Entertainment Enterprises Ltd (ZEEL) was first out of the blocks in publishing the RIO, declaring the MRP and nature of channels in connection with its tariff order , which had a 31 August deadline. The Punit Goenka-led company was followed by TV18 Broadcast Limited ( TV18), Sony Pictures Networks India Private Limited (SPNI), who adhered to the regulator’s directive on September 4. Later, Disney India, Turner India International, Sun TV Networks have also published their RIOs in compliance with the order.

    All the broadcaster have stuck to a maximum 15 per cent MRP discount to distributors. Earlier, Madras High Court chief justice did not uphold TRAI’s proposal of allowing highest 15 per cent cap on discounts despite giving the go-ahead to all other proposals. As any clarification did not come from TRAI, all the broadcasters are adhering to the order to avoid any further confusion.

    The TRAI tariff orders, first contested in Madras High Court by the petitioners, were cleared by the Chennai court with certain riders after hearings that continued almost over 16 months in front of two benches of the court.

    Though the petitioners were unable for comments, a legal eagle explained that the very fact the Supreme Court has allotted a day for hearing the petition of Star India and Vijay TV, which basically revolves around copyright and why the regulator doesn’t have jurisdiction over such issues, highlights the fact that the judge doesn’t want to take a decision in a hurry.

    After the Madras HC had given a thumb up to TRAI tariff order, and both the petitioners and the defendant (TRAI) had filed caveats in the Supreme Court, the regulator had bowled a googly saying that its tariff order would come into effect from 3 July 2018 () as all judicial compliances had been completed.

    “Having complied with  the  judicial  mandates  in  the  matter,  the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems)  Tariff   Order, 2017 and  the Telecommunication (Broadcasting and Cable) Interconnection (Addressable Systems) Regulations, 2017 as upheld by the Hon’ble Madras High  Court and the Telecommunication (Broadcasting and Cable) Services Standards  of   Quality  of  Service and  Consumer  Protection (Addressable Systems) Regulations, 2017 come into effect from 3rd July 2018,” the regulator had said in a statement pointing out that all timelines mentioned in the original order should be adhered to immediately.

    According to TRAI, implementation of the new regulatory framework will “bring in transparency”, enable provisioning of affordable broadcasting and cable TV services for the consumer and, at the same time, “would lead to an orderly growth of the sector”.

  • TV18, Sony Pictures India announce new channel rates

    TV18, Sony Pictures India announce new channel rates

    MUMBAI: Days after Zee announced its new tariff rates, TV18 Broadcast and Sony Pictures Networks India (SPNI) have also made public their own rates, in accordance with TRAI tariff rules.

    IndiaCast, the authorised distributing agency of TV18 channels, has updated the new format based Reference Interconnect Offer (RIO) on its website. This updated RIO will be effective for the term commencing from 29 December 2018. SPNI has also published its new RIO on its website.

    All TV18 channels will be available on an a-la-carte basis, as required by regulations. The a-la-carte rate of all SD & HD channels is under Rs 19 per month. The maximum retail price (MRP) of the basic bouquet for Hindi speaking market (HSM) named as Hindi Base starts at Rs 36 which includes Colors, MTV, Rishtey and CNN News 18. The Hindi Ultra pack has been priced at Rs 58. There’s an India Base pack which includes important channels from all regions and each genre at Rs 79.

    The broadcaster has announced multiple bouquets for several regional markets including base and ultra-pack both in SD and HD. Karnataka Base pack will cost Rs 53, while Maharashtra Base pack price has been fixed at Rs 45 and Bengal Base at Rs 41.

    SPNI is also providing a total of 32 channels including SD and HD on a-la-carte basis at under Rs 19 per month.

    SPNI has also declared ten bouquets concentrating on different regional markets as well along with focusing on its premium channels. The base pack BST Regular pack has been fixed at Rs 55 while its variants of regional languages are priced higher. SPN Blockbuster Pack priced at Rs 86.4 includes SET, Sony Yay!, Sony BBC Earth and ESPN. The Blockbuster pack also has variants with Bengali and Marathi languages.

    Two different packs focusing on the South Indian market are also available. The Big HD pack with all HD channels is priced at Rs 116 where Sony Marathi HD is proposed to be launched in place of TEN Golf HD. While the viewers of HD channels are growing slowly but gradually, two HD bouquets, one for South, are also available.

    The deadline given by TRAI was 31 August for publication of RIO, declaration of MRP and nature of channels, in connection with its tariff order. Zee Entertainment Enterprises Limited (ZEEL) was the only broadcaster to publish its RIO before the given deadline.

    Star India is the only big broadcaster which has not filed its ROI yet. The broadcaster is also one of the main petitioners against the TRAI tariff and interconnect order which will now be heard on 5 September by the Supreme Court.

  • MIB reminds TV channels, teleport ops about timely online payments

    MIB reminds TV channels, teleport ops about timely online payments

    NEW DELHI: In an apparent bid to make broadcasters/TV channels and teleport operators to follow its diktat on online payments for renewals and renewal fees, the Ministry of Information and Broadcasting (MIB) issued two notices recently cautioning stakeholders that any breach could result in adverse consequences.

    “Non-payment or delayed payments of prescribed annual permission fee tantamount to violation of uplinking/downlinking guidelines and attract action regarding continuation/revocation of permission under the relevant clauses of uplinking and downlinking guidelines 2011,” one of the MIB notices stated, adding it has been observed that a number of broadcasters and teleport operators had not been paying the requisite permission fee.

    Directing broadcasters and teleport operators to deposit outstanding dues within 15 days from the issue of the notice, MIB said, cracking the whip, that any failure to do so will attract action under the existing policy guidelines.

    “It must also be ensured that the time schedule for payment of required fee, as prescribed in the uplinking and downlinking guidelines 2011, is strictly adhered to. It may also be ensured before making any request to MIB that there are no outstanding against the channel/teleport operators on the date of application,” the notice said.

    In another notice, MIB reminded stakeholders about the submission of online applications for change of name or logo or any other issue, apart from foreign remittance proposals.

    “It is reiterated that the instructions given in the notice regarding online submission of applications may be strictly adhered to,” the second notice from the government said.

    These notices come close on the heels of the Indian Broadcasting Foundation, the apex industry body for TV channels in India, petitioning the Prime Minister’s Office on the steep hike by MIB in processing fees and other administrative costs.

    MIB, in the past, has maintained that the facility of online payments to the government by stakeholders was introduced to reduce paperwork and make life easy for all.

    Also Read:

    MIB mandates broadcasters to make applications via Broadcast Seva

    MIB seeks all new MSO applications online 

    New portal to help ease of broadcast business

  • IndiaCast, Hathway strike deal after TDSAT order

    IndiaCast, Hathway strike deal after TDSAT order

    MUMBAI: Setting aside their differences, IndiaCast Media Distribution Pvt Ltd (IndiaCast) and Hathway Digital finally came to an agreement on Wednesday and signed a deal. As a result, IndiaCast, the content monetisation arm of TV18 and Viacom18, has switched on the signals of its channels to the multi-system operator (MSO).

    The deal came to fruition after the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), on Wednesday, ordered the companies to restore signals.

    The parties have agreed to sign a one-year fixed fee deal until 31 March 2019.

    Earlier, IndiaCast channels had been pulled off from Hathway. Despite several meetings, Hathway could not fulfill the growth aspiration of IndiaCast in terms of the carriage and subscription fees. The subscription and carriage agreements between Hathway and IndiaCast had expired on 31 March 2018.

    On 1 April 2018, IndiaCast issued a 21-day public notice to Hathway to meet regulatory requirements. Earlier, reports stated that the notice was issued due to non-payment of dues, non-submission of monthly subscriber reports, under-declaration of subscribers, failure to allow an audit of systems and unauthorised retransmission of channels.

    Across the cable industry, multi-system operators (MSOs) are now doing fixed-fee deals. While all the players are waiting for the new tariff order, due to the delay in the roll out, cable operators are relying on fixed-fee deals only. To move forward with these fixed-fee deals, the parties negotiate on the last fee structure and agree on certain percentage growth.

    The disagreement between IndiaCast and Hathway came about with the renewal of these deals. As IndiaCast acquired Turner channels recently, the distribution company demanded more subscription money than ZEE.

    Though IndiaCast was due to switch off its channels on 21 April, it eventually pulled off from Hathway on 25 April. Other than the disagreement on the hike in fees, IndiaCast had also asked Hathway for a two-year commitment and was not satisfied with the format of the subscription report.

    Also Read :

    IndiaCast, Hathway fail to concur on carriage, subscription fees

    TDSAT prohibits Scod18 from relaying IndiaCast channels

     

  • IndiaCast, Hathway fail to concur on carriage, subscription fees

    IndiaCast, Hathway fail to concur on carriage, subscription fees

    MUMBAI:  As a result of unresolved conflict between Hathway Cable and Datacom Ltd (Hathway) and IndiaCast Media Distribution Pvt Ltd (IndiaCast), all IndiaCast channels have been pulled off from the cable platform. Despite several meetings, Hathway could not fulfill the growth aspiration of IndiaCast in terms of the carriage and subscription fees, according to a source. The subscription and carriage agreements between Hathway and IndiaCast expired on 31 March 2018.

    On 1 April 2018, IndiaCast issued a 21-day public notice to Hathway to meet regulatory requirements. Earlier, reports stated that the notice was issued due to non-payment of dues, non-submission of monthly subscriber reports, under-declaration of subscribers, failure to allow an audit of systems and unauthorised retransmission of channels.

    IndiaCast did not respond to queries when Indiantelevision.com reached out to the company.

    Across the cable industry, multi-system operators (MSOs) are now doing fixed-fee deals. While all the players are waiting for the new tariff order, due to the delay in the roll out, cable operators are relying on fixed-fee deals only. To move forward with these fixed-fee deals, the parties negotiate on the last fee structure and agree on certain percentage growth.

    The disagreement between IndiaCast and Hathway came about with the renewal of these deals. As IndiaCast acquired Turner channels recently, the distribution company wanted to get more subscription money than ZEE.

    According to a source familiar to the development, Hathway, being convinced of the logic, offered a certain level of growth going beyond their means. However, IndiaCast was not happy with the offering and asked for a percentage increase more than 100 per cent. Ultimately, the parties could not reach any solution leaving the deal unresolved.

    Though IndiaCast was due to switch off its channels on 21 April, it eventually pulled off from Hathway on 25 April. Other than the disagreement on the hike in fees, IndiaCast also asked Hathway for a two-year commitment and was not satisfied with the format of the subscription report.

    This is not a new development in Indian cable history. Though broadcasters, MSOs and DTH operators speak about putting viewers’ interest first, the recent examples don’t speak in favour of that. Agreements being left to market forces lead to such stand-offs from time to time. As a result, consumers are often at the risk of missing out on watching their favourite channels.

    Also Read :

    Hathway Bhawani appoints Vatan Pathan as CEO

    TDSAT prohibits Scod18 from relaying IndiaCast channels

  • TRAI extends dates for comments on uplinking/downlinking consultation paper

    TRAI extends dates for comments on uplinking/downlinking consultation paper

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has extended the deadline for receiving comments on the consultation paper relating to uplinking and downlinking of TV channels. The new dates for receiving comments and counter-comments are 31 January and 10 February respectively.

    The TRAI had released the paper on 19 December 2017 inviting comments by 18 January 2018 but has pushed the date on the request of stakeholders. It has also warned that no further extension of dates will be entertained.

    The paper seeks to update guidelines and also talk about setting up of teleports. Ministry of Information and Broadcasting (MIB) additional secretary Jayashree Mukherjee had sought TRAI’s views on the issues keeping in mind the changes in technology, market scenarios and lessons learnt over six years since the last guidelines were passed.

    The specific question asked to broadcasters was if there was a need to redefine the definition of news and non-news channels.

    The paper also hints at a possible hike in the net worth requirement to obtain uplinking/downlinking licence to ensure only serious players stay in the game.
    On the teleport side, the TRAI is asking the industry how to define the word in the digital era, licencing norms, fee structures and if there is a need to restrict the number and location of teleports in India.

    Also Read:

    Trai paper seeks to streamline uplinking, downlinking norms

    TRAI sees merit in using satcom for broadband delivery

    MSOs move Madras HC seeking relief on inter-connect pacts