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Tag: CAS

  • ‘We are keen on bringing in more channels’ : Deepak Shourie – Discovery Networks India MD

    ‘We are keen on bringing in more channels’ : Deepak Shourie – Discovery Networks India MD

    For Discovery Networks India, 2007 has been a year of growth. The company carried out a slew of local initiatives including celebrating 60 years of India’s Independence. It is also looking at airing more HD content from overseas, coming out with thematic week slots for Discovery Travel and Living, and doing local productions.

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, Discovery Networks India MD Deepak Shourie talks about the company’s eagerness to bring in more channels, address different target segments, and prepare the ground for exploiting new media.

     

    Excerpts:

    Discovery globally has been undergoing major restructuring this year. Has India been impacted?
    There is more sharing of resources happening now. We see Discovery as one brand rather than saying, for instance, that what is happening in the UK is separate from other countries.

     

    India is an important part of this brand story. We take content from other parts of the world and what we produce in India travels abroad. With India today being the flavour of the world, this of course helps.

    As cable operators digitalise their networks, do you see this as an opportunity to bring in more channels from the Discovery stable?
    We are examining this possibility. We are keen on bringing in more channels even though we realise that there is no space on analogue cable networks and getting distribution is tough. Cable operators are in a position to demand higher carriage fees due to lack of space. Digitisation will not become a complete reality unless consolidation within the cable industry happens.

    Are you satisfied at the growth of digitisation in terms of Cas and DTH?
    With direct-to-home (DTH), we are happy to see Tata Sky and Dish TV spreading their reach. But with Cas (conditional access system), what we feared would happen has happened. We have been saying that Cas can’t be mandatory; it has to be voluntary. You can’t force it down people’s throats. That is why the uptake of set top boxes (STBs) in the Cas areas has been low.

     

    Broadcasters are suffering as they have no idea as to how many homes have taken their channels. The multi-system operators (MSOs) do not have a proper billing system in place.

    We are entering a phase when we will see the launch of more English channels. How do you view this scenario of fragmentation?
    We are happy to see more channels come in. Since Discovery is a well established brand, we are not worried about our share of viewership; we have grown to be the number one international channel in the country. We have achieved the aim of making Discovery mainstream as opposed to being niche. The new channels that come in will find it difficult to build viewership.

    Discovery has boosted its reach partly due to its Hindi feed. Are you looking at regional languages?
    No! We were evaluating this possibility. However, we decided that these two languages give us enough reach. In the South, English is well respected.
    ‘For Discovery, we are seeing more male viewership. Discovery Travel and Living targets SEC A men and women. For Animal Planet, a global strategy is being worked out‘

    Has there been a change in terms of how viewers have consumed the channel over the last couple of years?
    For Discovery, we are seeing more male viewership. This is because of the kind of shows we air. We focus on things like engineering, science and cars which appeal more to men.

     

    Discovery Travel and Living targets SEC A men and women.

     

    For Animal Planet, a global strategy is being worked out. We are waiting for this.

     

    India is a young country with high aspirations. Over time we will see some movement away from entertainment television towards television that is informative. This is how growth will happen for us.

    One of Discovery’s major initiatives was celebrating 60 years of India’s independence. How has the experience been working with India’s scientific and technological community?
    Our aim was to showcase innovations at a grassroots level. It seemed a good way to show the progress India is making. We also want to encourage innovation. The technological community was very open and appreciative to what we did. Local shows play an important part in driving viewers to the channel.

    What has Discovery’s strategy been to lure in more viewership?
    Our main aim has been to ensure that the primetime is very strong. We start with the ‘Wild’ section, then move on to technology, trends and India hour.

     

    Our aim is to two-fold. Firstly during primetime, the content on our channel must be important and matter to our viewers. Our second aim is to ensure that viewers return to our channel even during non-primetime.

    What are the major properties coming up on the channel?ce?
    The biggest one is Atlas which will kick off towards the latter part of next month. This will look at different countries – India, Australia, Italy and South Africa. The show looks at different facets – be it culture, topography, etc. It has been filmed in high-definition. It looks to combine the quality of a blue-chip documentary with the detail and clarity of HD.

     

    Another property we are excited about is Into Alaska With Jeff Corwin. Alaska has America’s highest mountain; it has a great element of wilderness as well as fascinating animals. A population of less than that of New York City spreads out over an area three times the size of Texas. Jeff Corwin brings this wilderness to viewers.

     

    Race To Mars looks at the race to first reach the Red Planet by 2030. China is leading the way.

     

    Once again, America and its partners, including Canada, are thrust into a winner-take-all space race. Six individuals from Canada, the US, Russia, France and Japan are selected for this gruelling two-year mission. This crew sets out on humanity’s first expedition to another world; nothing can prepare them for the unexpected danger and staggering wonder of what they will experience.

    Abroad Discovery is focussing on the environment with its major eco green initiative. Are you looking to do something in India along these lines?
    We will air this in India. Discovery US has tied up with Leonardo DiCaprio for the eco green initiative. Once this content becomes available we will see what can be done in India to add value.

    Discovery Asia and Nokia teamed up for a filmmaker’s initiative. How has this worked out?
    It was a marketing relationship. This was for mobile filmmaking where the winner got the chance to work in Discovery Asia’s Singapore headquarters and learn about making documentaries. The initiative gave people the chance to innovate.

    How does Discovery Travel and Living reach its viewers?
    Viewers have found us. We have more SEC A viewers watching us than any other channel. Income levels are going up. Where will this money be spent? On lifestyle. That is why they will watch us for information and also entertainment.

     

    It is a difficult proposition for most channels to catch this audience. People in this segment do a lot of things during their leisure time.
    Has this helped you in roping in big advertisers?
    We have sold most of our inventory. Every lifestyle brand that launches a new product comes to Discovery Travel and Living. At the moment we are doing something for India Today Travel Plus. In the past we have done initiatives for companies like AmEx Platinum Card.

     

    Is the channel also looking at forging tie-ups with tourist resorts, tourist boards etc?
    In the past, we have done shows for states like Chattisgarh. We did a France Week recently and we did a press event at the French embassy. Sometimes, tourism boards advertise on our channel.

    Could you shed light on Discovery Travel and Living’s plans for the first quarter of next year?
    We have a couple of interesting shows lined up. There is a show called The Petra Nemcova Project; it is about this international supermodel who is grooming six other potential models. The show chronicles the real story of what it takes to be a model in New York City, without staged eliminations or contrived challenges.

     

    Six new models are brought to the biggest stage in modelling and viewers follow them from their first test shoot to the runways of New York Fashion Week.

     

    Nemcova serves as a mentor and friend to the prospective models, as they learn the trade of modelling and the business of fashion. Using her own life experiences, Petra advises the models on how to succeed and underscores the importance of having a well-rounded life.

     

    We will also premiere a show called Nigella Express. Nigella Lawson is a popular TV chef on our channel.

     

    She takes viewers on a quick and easy journey through the world of getting fabulous healthy food on the table fast. It is the sort of food viewers can cook fast around the clock, any day of the week, to fit whatever amount of time is available. Starting with everyone’s everyday nightmare of what to eat for dinner, to getting entire banquets on the table in less than 30 minutes, this is a series that will resonate with everyone struggling with hurried, time-squeezed, modern life.

     

    We are also looking at a couple of Indian productions.
    The channel is doing thematic weeks. Could you elaborate on this?
    These run from Monday to Friday at 9-10 pm. It allows us to showcase special programming for viewers. This also works for advertisers as they can sponsor a particular week’s programme. During this quarter, we are doing a lot of country-specific programmes, looking at the adventure spots and opportunities for tourism and travel.

     

    Abroad, Discovery has looked to expand through new media. What plans are there in India to tap into mobile and internet?
    Both of these are under review. Global strategies are being worked out for them. It will be a different ballgame as the mobile screen is small; it will complement traditional TV viewing as it is good for snippets of news, music and sports.
  • ‘What we are telling the regulator is that the sheer volume of content this industry generates is impossible to police’ : Paritosh Joshi – Star India advertising, sales and distribution president

    ‘What we are telling the regulator is that the sheer volume of content this industry generates is impossible to police’ : Paritosh Joshi – Star India advertising, sales and distribution president

    It’s nigh on one-and-a-half years since Star India brought in a “media outsider” Paritosh Joshi as president – advertising sales & distribution, thereby consolidating the two major revenue streams of India’s lead broadcast network under one position.

    That it’s not been exactly hunky dory for Joshi since his induction is putting it mildly. His arrival has coincided with the return to the ratings reckonings for the former number one Hindi entertainment network Zee TV while on the distribution side the story has been one of the sector regulator’s increasingly watchful eye on the industry. There is also the government mandated CAS rollout timetable that Star has stated it will fully support.

    Joshi spoke at length on this and a number of other issues in an evening tete-a-tete with Indiantelevision.com.

    Excerpts:

    It’s close to one-and-a-half years since you joined Star. What have you done and managed that made a difference?
    Well, for one my coming to Star challenged many notions, since I had no prior media experience. But it had its advantages in that I came on board carrying no baggage and no preconceived notions.

    Interestingly, your induction also coincided in a time frame sense with Sameer’s pet theory that the entertainment business operates in a four-year cycle…
    The real reason for Sameer’s continuing success is that not only does he challenge his own beliefs but he encourages others to challenge his beliefs.

    As for me, my task was to look at both sides (distribution and ad sales) from above and approach revenue in a derisked sense. What we have realized is that the different parts of our business are not functioning as silos but have a number of linkages that need to be tapped into in a more holistic manner. This involves making decisions on a continuous basis.

    The converged new world is what it sounds like. Could you expand on that?
    We are developing a new understanding of the TV ecosystem. How do all these work in tandem is what we are trying to get a grip on. There are interactions across the businesses as well as new opportunities.

    For instance, we have put in Nanette D’Sa as head of licencing and merchandising; there is the branded entertainment division we have launched.

    Then there is our internet play. We have the online rights for ICC cricket and we’ve launched iccchampionstrophy.indya.com. We will soon be bringing myspace to India. Ajay Vidyasagar is actively involved there.

    On the mobile front we have the 7827 shortcode that works across all networks. A lot is happening on that front, which is Viren Popli’s baby.

    What are the principal challenges that you are confronting?
    There is an extremely complex regulatory environment in place.

    One could say there was hardly any worthwhile regulation earlier, so it’s about time.
    You have a point, but from no regulation to over regulation in one shot is also not the best way to do it either.
    ‘We will have to demonstrate by behaving right that we are willing to work on a collaborative model than an antagonistic model‘

    Well, if you were to place the kind of content that is put out on our networks before Britain’s Ofcom for instance, I am sure virtually all channels would have quite a few questions to answer.
    That’s not really a correct comparison. We (the Indian television industry) have had to grow from infancy to adulthood in one dozen years while it is a 50-year-old story in Britain. The government should make some allowance for that.

    What we are saying is that we will work with you (the government) in each part of the business to get the system in order. What we are also telling the regulator is that somewhere along the line, the sheer volume of content that this industry generates is impossible to police.

    Look at it this way. We (Star) produce 12 hours of original content every day. And there is virtually no time lag between production and delivery. If our degrees of freedom are circumscribed, our ability to deliver a quality product to our constituency gets diminished.

    Agreed, but the flip side is that whenever you try to bring order into what has been a free-for-all, there will be some amount of pain and chaos involved. That has been shown when PAN cards were introduced, as too VAT. As long as the intent is not malafide, shouldn’t industry leaders be taking the long term view?
    We’ve got too much at stake to think in the short term. And I am sure the same applies for the other big networks like Zee and Sony. The big networks should be and can be trusted to do the right thing.

    We will have to demonstrate by behaving right that we are willing to work on a collaborative model than an antagonistic model. Dialogue across constituencies is important and I am actively involved on this front.

    How many know that Star has substantially contributed to the working of the content code?

    Coming to the specifics of your network, where do you see the biggest upside on revenues coming, going forward?
    DTH will be truly it, over the next couple of years, though in discontinuous spurts. By this time next year we should be looking at between 2.5 to 3 million subscribers between the two networks (Tata Sky and Dish). Even at the Rs 27 per sub that we have been forced into agreeing to (as per the TDSAT order), you can do the math.

    That’s assuming that all subscribers will take your offering.
    As far as our current crop of channels go, we will be on the basic packages across all services so would expect to get those numbers.

    What about addressable cable. Isn’t that where the real big numbers are? More so with CAS getting rolled out?
    The addressable cable rollout is unclear as to its shape at this juncture. I think that what will happen is that while there may be some false starts, it will all settle down in due course.

    If addressable cable rolls out well, then great. We are platform agnostic on addressable systems so it can only benefit us.

    Speaking of CAS, how do you see that impacting revenues?
    We are close to signing all our CAS contracts. Star is ready to roll on CAS. The IBF will work together with other stakeholders to facilitate this in any way we can.

    Another difficulty that has hit both Star Movies and HBO is on the issue of certification of films. The Festival season is here, is there any resolution in sight there?
    We expect some solution but it will take time. We’ve basically written it off for this quarter.
    What does that mean in percentage terms?
    That would mean a write-off of about one third of the revenues we would normally have expected for the quarter.

    The most recent addition to your bouquet has been Neo Sports. Word is that you have committed a massive MG to Harish Thawani.
    I can’t comment on the size of the MG but we have to work on the fundamental premise that cricket played in India will get viewership like nothing else can, which is why Harish made the punt he did…
    What about the regional language story?
    In Bengali, we have already started our activity with a two-hour entertainment band in the afternoons on Star Anando (news channel). You could say that is the test run though we are yet to fix a date on a full fledged Bengali entertainment channel launch.

    We’re looking at the Telugu channel sometime early next year. Probably March or April.
    Are you considering the acquisition route for the Telugu channel?
    Not at all. We will be launching a completely new channel from ground up.
    On the advertising front, what are the issues that are worrisome?
    With no disrespect to LV (Krishnan, CEO of Tam India) meant, considering the heterogeneity of the country, the present ratings system is inadequate. In India we have 5,000 meters, there are 18,500 in the UK where the population is much more homogenous.

    I’ll end this by saying, ‘As providers of content real estate, our value proposition has been reduced to the absurdity called CPRP that determines and assesses everything. We would argue that this obsession with one single metric destroys value rather than creates it.’
  • ‘Cas is here to stay’ : Nripendra Misra – Trai chairperson

    ‘Cas is here to stay’ : Nripendra Misra – Trai chairperson

    Nripendra Misra is a suave IAS officer with a reputation of being completely above board, and perhaps lacking the ‘guile‘ that puts many others in the topmost slots of the bureaucracy, fellow officials say of him in a positive sense. After the first initial setback for Conditional Access System in 2003, it was during Misra‘s tenure that Cas was enforced in parts of Mumbai, Kolkata and Delhi. And it was war… MSOs had to be readied, LCOs trained to shift to higher technology, broadcasters‘ resistance to be broken down by assuaging their fears and yet, the court order had to be implemented within the deadline: 31 December 2006.

    It could not have been a pleasant task. Amidst all this, Misra and his dedicated but small team is going about handling one of the noisiest of industries in the country, issuing consultation papers, and ushering in new technologies.

    Misra took his stand on various contentious issues during an interview with indiantelevision.com‘s Sujit Chakraborty.

    Excerpts:

    It has been nine months since Cas was implemented in parts of Kolkata, Mumbai and Delhi, after Chennai was brought under Cas. Towards the beginning there were uncertainties, and some people even opposed Cas. So today, what is your assessment of Cas? Is it a success or a failure in numerical terms?
    Well, we never had a target in terms of penetration percentages. It was left to the subscriber who wanted to opt for choice, whether he wanted pay channels or FTAs and which are the ones he wanted. The latest numbers tell me that about six lakh (600,000) homes have opted for Cas in the mandated areas.

    That is out of a universe of around 1.6 million cable homes…?
    Yes, so that is about 30 per cent of subscribers. Then you have also a similar facility in DTH, which has also been accepted by many. In Kolkata particularly, the response has been poor because most of the popular channels are FTAs. So if the criterion is in terms of numbers, I think it has been a very satisfactory performance.

    But it is not the number that is important. Unfortunately, we are always missing the true substance when attempting to evaluate Cas.

    What is it we are trying to do? We are trying to set up a mode of digital transmission, which is more efficient and more accommodative. It is the global practice. Analogue is gradually getting out of the scene, and so we have to make a beginning. That was made into a kind of a pilot in these four areas.

    Today you have a choice, you have DTH and you have Cas. Tomorrow you may have HITS… which is another option. You have voluntary Cas. So a beginning has been made, a seed has been sown, which must someday fructify in terms of an all India feature. Success has to be measured in terms of whether it is a trendsetter or not, and not in terms of how many people have opted for it or not.

    So would you say that the target of becoming a trendsetter has been achieved?
    Oh yes! It is perhaps a watershed in that in the broadcasting industry, digital transmission has begun.

    But one main area that remains disturbing is the quality of service, which in many parts of the mandatory Cas zones remains highly dissatisfactory. Lots people are not getting the channels they have opted and paid for.
    Firstly, I do not want to defend the quality of service, and there are problems of channels being discontinued. But it is not just at the level of local cable operator. I think somewhere down the line, the MSO also has to take his role seriously. Unlike in non-Cas areas, the role of the broadcaster and MSO in implementing Cas is far more important than that of the LCO. So, if these things have happened, they have happened because of the inadequacy of the functioning of MSOs.

    When it started in January, we wanted to take a very liberal view. We did not want to enforce all the regulatory provisions in the first four or five months. They wanted time so that the consumer preference could be registered, and we gave them enough time. The subscriber register that has to be maintained was not complete to the extent we wanted. Therefore billing got delayed, payments also got delayed… subscribers have also not made payments. But we have made it clear that come 1st of July, we are not going to forgive anyone.

    But how do you enforce this, as it has clearly not happened in many places till now?
    There are three ways of how to enforce this. First is the awareness of the consumer. There is a quality of service regulation in the Cas area which is operational. Therefore the subscribers must reach to and judge the performance of the MSOs and cable operators. There are great details in the regulation about the kind of rebate that has to be given if the channels are not coming, or how much time it should take which kind of interruption, what should be the response time for the MSOs… these are all standardised and fixed.
    ‘Broadcasters have been cooperative in rolling out Cas, despite serious reservations about the Rs 5 channel price‘

    But that brings us to a moot point…. The consumer is not truly aware and also does not seem to care about implementing his rights?
    It takes time…

    So you are saying that MSOs are primarily responsible for QoS, so where have they failed? Because there are lots of complaints about failure across the board.
    The MSOs initially were perhaps not ready with the level of demand. That has settled down, STBs have been imported and they are in plenty today. The second stage was to get the reference of the subscribers. Now, I know and it is correct to say that the MSO representatives have gone to the homes four or five times, asking the subscribers to fill up the forms. But the gentleman says, you have come at the wrong time, that he will have to consult his family.

    But gradually, that too has ceased to be a problem. Ninety percent of the subscriber registers have been completed and the choice is now there. Now the stage is where the subscribers must know what their right is. That is, the manual of practice of the MSOs must be made available to the subscribers. That manual of practice in most of the cases is not available. The contractual conveyance, that we have between us signed a contract, and this is our right, that message is still not being passed on, which is reflecting in the lack of awareness.

    Broadcasters have been extremely cooperative in rolling out Cas, despite serious reservations about the RS 5 channel price, and all the Reference Interconnect Offers are in place.

    So what have you told the MSOs about this?
    We have conveyed to them that look, we shall view very seriously if there are defaults. We have written to the state governments, because they are the enforcement machinery.

    So what is holding back the extension of Cas in the three metros?
    The Central government wanted us to report back on this, we have sent that report, we have said it will take six to eight months‘ time to implement after notification of the extension. But then the state governments said that it is better to evaluate before extending Cas. We on our own without waiting for such instructions have engaged some outside agency to advice us on the level of implementation.

    Has that audit been completed?
    It will take another two months, we are expecting the reports by the end of October or beginning of November.

    So it will further delay Cas extension by that much time?
    Well this has nothing to do with Cas extension, this is something we are doing independently, and as far as the government goes, they can extend Cas, and we have just said that it would take six months from the day of notification to implement the extension. It is for the government to take a view when they wish to notify.
    Resistance to Cas had been from the broadcasters, but even from the grassroots level, due to privileges of piracy and under declaration, there had been resistance from the cable operators as well, so have the realised that this is the business model of the future?
    I think they have realised this more than anybody else. Today there is demand from many, many parts of India that they be given the permission for implementing voluntary Cas.
    Like Ortel and Sristi in Orissa and West Bengal?
    Ortel is one, then Pune is another, and there is demand from Bangalore, Mumbai and many other places. Some have in fact gone ahead with the implementation of voluntary Cas. So what the LCOs know very well is that the competition from DTH is very strong. The LCOs thus know that of they have to remain in the industry, two or three things are required.

    First, investment is required, which is not come if the industry is so disorganised as it is today. Second, they know that there has to be some regulatory provisions to give stability, which will ensure certain amicable relations between them the broadcasters and the MSOs. So to answer your question as to why they are not implementing voluntary Cas, perhaps for that some regulatory initiative is required.

    Now, for that the expert committee had been set up, and it has suggested that voluntary Cas be rolled out in 55 cities and towns. But they have also said that you have got to have a regulatory regime for at least one year. Even for voluntary Cas, certain things are important, like Standard Interconnection Offer, what should be the connectivity, what should be the revenue sharing formula. So these are the issues we are looking at, and we are going to put up the paper on voluntary Cas.

    “Fixing of channel pricing in non-Cas is a challenge, but we shall come out with something that meets the expectations of both the high and low income groups”
    When is that likely?
    Oh any day, we are working on HITS and next is the paper on voluntary Cas.
    The consultancy paper on HITS is already out?
    Yes, but we have to now recommend the terms and conditions of licensing provisions to the ministry of Information & Broadcasting. Even the voluntary Cas paper is also in the pubic domain, and so we have to now concretise our views. And then specifics like what are the regulatory issues, what are the areas in which facilitation is required… perhaps some technical training is required, and the go ahead.
    But voluntary Cas would mean that channel prices will be dictated by the broadcasters and subscribers may suffer?
    Let‘s see. Voluntary Cas does not mean it cannot be regulated, and as such I do not have any views on the subject now.
    It follows that even in voluntary Cas you could regulate prices?
    If it requires so in the case of DTH I can regulate prices. In fact, there has been some judicial expectations on this, when TDSAT in one of its judgments asked that if channel price is regulated in Cas, why it is not there in DTH? We had our reasons, it is an infant industry, we wanted DTH to grow.
    But then Cas is also an infant system?
    The difference is that DTH is a new initiative, and I am of the view that there should be minimal regulation. Cas was a shift from the old cable industry.
    The cable industry has been insisting on a level playing field and they are pointing out to the IPTV and DTH consultation papers as proof that Trai is not creating that level playing field. And in Trai‘s own meetings on Cas in Kolkata and other places, LCOs and MSOs have accuse Trai of siding with broadcasters?
    There was never such an accusation. You may have been told so, but never, never has a single cable operator said that Trai is favouring broadcasters. It is all a matter of which platform you are utilising. You fix the price at RS 5, and someone will say, it is against broadcasters. If you do not do that, they will say you are favouring the broadcasters. There is a bogey being raised that in many of the countries channel prices are fixed. The truth of the matter is channel prices have not been fixed in a majority of the countries. And majority means, more than 90 per cent of the countries.
    So there, prices have panned out according to market pull and push?
    Of course.
    So how much time do you think we will need for market forces to create prices that are compatible with the pockets of the average consumer, who are the vast majority, that is, when would deregulation start and prices shape up as per market forces?
    It is already there, because in non-Cas it is already there according to the market forces. I haven‘t regulated prices there. The prices have been fixed by the cable operators and the subscribers. In 2004 when there was such a noise, there was an order on freezing the prices. You know that order was an interim measure. The ideal situation, which is there in our consultation paper, is it should go to forbearance. And I think that the day is not very far. The moment there is healthy competition and prices should be put on forbearance.

    There is the issue of price freeze versus price cap?
    That I won‘t answer because we have not issued the regulation on that so far.

    It is important for the cable industry to grow and I am not a great votary for centralised economic activity, or vertical integration, so franchise should be the mode.
    Is it in the offing?
    Yes, the next thing for the non-Cas areas.
    In recent meetings the ministry of broadcasting has said that content control in IPTV is not in their domain because that platform is under the ministry of telecom. Despite that Trai has said that it is I&B which should control content in IPTV, so do you think you have usurped some of the government‘s prerogatives?
    No, not all. It is a viewpoint. I can‘t say anything on content regulation, who will or who will not do. It is not within my powers. It is simply this, that we are of the view that the control of all content of all broadcasting and on all technological platform is best done by the broadcasting ministry. It is just a view point.
    So what are the forthcoming issues in the cable or rather the video-related industry?
    Well after introducing digitisation in non-Cas, there will be the issue of pricing. Then the other issue will be also of the structure of the cable operators. Can we contribute to their organisational strength? This comes from the understanding that there is the issue of investment, because we know there is an opportunity.
    But that investment with such small players would not be possible, so what does one do to ensure investment?
    In some manner it has to be there. Whether in the franchise mode, or through takeovers, or vertical integration. But I think that in countries such as India, perhaps there will be a role for everybody. I am not a great votary for a centralised form of economic activity. So it is better that we perhaps have a relationship in which franchise is the mode and there is mutually shared revenue principles.
  • ”Economically sensible model is a combination of CPT and correction of income growth’ : Paritosh Joshi- Star India President

    ”Economically sensible model is a combination of CPT and correction of income growth’ : Paritosh Joshi- Star India President

    It’s now a known fact that HLL has pulled its advertising off the Star India Network, but whether a non co-existence and exchange between the biggest advertiser on television and the top rated television network in the country is a healthy proposition for either of the two parties, is the moot point?

     

    Even though TRP rates have declined across the network by 1-1.5 per cent after the implementation of Cas, it is also true that the television universe has grown drastically. And the truth is, Star has been singled out, leading one to question if there is a larger issue at stake here between the two mammoth corporations in this face-off that kicked off in March this year.

     

    Star president advertising sales and distribution Paritosh Joshi says that it is more than just an individual client issue but part of a larger debate for which the industry cannot behave like a cartel because that is unethical.

     

    Presented here are comments made to Indiantelevision.com on the matter by Star India president Paritosh Joshi. Additonally, relevant comments made in earlier interactions with Indiantelevision.com by HLL GM – Media Services Rahul Welde and Zee Network executive V-P Joy Chakraborthy have been provided in an attempt to offer a more rounded overview of the issue.

    Excerpts:

    How do you propose to address the issue that HLL has put the forth through its boycott of the network and rejection of Star’s advertising rate card?
    A solution to this will emerge as a fallout of the understanding of two dramatic developments in television. First the growth in television homes in the Hindi speaking markets of the East, West and North but not the South that is already saturated.

    Secondly, the GDP, which is estimated to grow by 8.9 per cent year on year. However, there is a disproportionate income increase in which the top 60 per cent of the population absorbs this growth. Out of the 120 million TV homes, 70 million are C&S, therefore with the kind of growth in disposable incomes that the country is seeing, the number of C&S homes will grow by twice that rate.

    The aggregate value of television ad sales is likely to see 20-22 per cent Y-O-Y growth. If this is not reflected as an industry then we are under monetized.

    Is CPT is the answer?
    I believe an economically sensible model is a combination of CPT and correction of income growth.

    Should broadcasters be united on this front?
    The industry cannot behave like a cartel because that is unethical. We have to, as individual broadcasters, explain this to the client in a sensible manner and get them to recognize and find merit in the argument.

    But how then do you fill up the bulk of your inventory?
    The Cricket World Cup has in some ways contributed to clients looking for a more reliable, robust and stable inventory. With April to June being a buoyant period with new category launches and the new financial year, there are enough interested clients. We are seeing high activity from the skin care sector, bottled beverages, refrigerated foods and air conditioner brands.

    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    ‘Money is shifting from the big to the small or from the leaders to the challengers‘

    With HLL always known to be television heavy, what happens in the case of mass channels and niche channels, what strategy would you follow in that case?

    Well, we do spend on niche and mass channels, but with the whole area of fragmentation of audiences with multiple channels emerging, where stickiness is a challenge and competition is high. Now what it really means for us is that segmentation and multiplication of channels provides the opportunity to peg note and talk to the consumer.

    Unfortunately, the costs have increased and given that the overall advertising pie is fixed. The ad pie doesn’t grow because there are more channels, but what is happening is money is shifting from the big to the small or from the leaders to the challengers.

    The growth of channels, we will see an increase in the number seconds, but what is often interpreted is that spends are also increasing in the same proportion. It is of course a big challenge as fragmentation makes the task of planning even more difficult, where agencies will produce software and optimizers making the process more sophisticated. This scenario is good for segmentation, bad for costs. Thus I don’t know whether to call it a ‘happy situation’ because after a point of time your returns become sub-optimal when costs are high. Then that becomes a worry.

    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

    The big news currently seems to be around how Hindustan Lever is significantly increasing spends on your network. You have even been on record as saying you are looking at a growth of at least 100% on Lever spend in FY08 over FY07? How do you justify that optimism?
    Levers is the biggest client in the television space and we have channels across all genres, Levers is a good client for consumption also because they are perennial clients. There has been rate correction but we have also given them big properties. At the same time, Levers buying process over the last two years has changed, initially they used to buy slots that appeared at a particular time band but now they have started buying quality as well so they would necessarily have to pay for that. Therefore, there has been a jump in ad sales rates this year over the previous year.

    When you say ‘rate correction’ – what do you mean?
    The Zee network itself is very under-priced, so we are continuously correcting our rates. I have over my tenure here (which is two years) revised my rates three times, but no rate correction is very drastic, it’s really a gradual correction.

    After all we are still in a World Cup year and although India is out of the tournament, we will see loads of other cricket action as well?
    As a network, we haven’t suffered at the hands of cricket. However a lot of money is diverted there. But thanks to cricket and sport, I believe that the overall PUT (people utilizing television) will also increase, because of World Cup TV sales will also increase, so the whole space is only going to expand.

    It will eventually benefit us also, but my only concern and what I see as a challenge this year is that the unofficial currency is cost per rating point (CPRP), which has to move cost per thousand (CPT). CPT is more important and with Tam’s expanded panel the absolute number of people watching has increased by 50 per cent and we as an industry should be paid for that. Even more, if you are a listed body you also should subscribe to the CPT model, which will happen sooner or later.

    But how soon do you think the transition from a CPRP model to CPT model will take to materialize?
    The IBF and AAAI have already met on two occasions, the next one is in April. But at the end of the day this shift will benefit all of us. It’s not that it is unfortunate for the client alone, as the television medium continues to grow the cost of programming, distribution, marketing and manpower is increasing every day. With the CPT model the ad rates will go up, infact most agencies buy on CPRP and give it to the client on CPT, but after expansion the minimum rate has increased. The recommendations of these two industry body’s should materialize within a month’s time.

    It has been previously stated that Cas impact only accounts for a 1- 1.5% drop in C&S 4+ level across TV. However, with moves to extend Cas to cover the full metros and then possibly go into other cities and towns this argument cannot be sustained for much longer. How does Zee view this situation and how do you plan to use it to your advantage?
    Cas is here to stay but the thing is that Cas growth was marginal, across the Zee network the drop accounted for 2.5 per cent, which is very less in comparison to the kind of growth that we are experiencing.

    With Cas rolling out further, the pressure from media buyers on rates is only going to go up? Do you see the possibility of many channels, including entertainment channels, going FTA to protect advertising revenues? For instance, Peter Mukerjea’s Hindi entertainment channels will be FTA when it launches…?
    Sometime we really wonder whom the media buyers really work for, the channel or the client. They will always pressurize us. Do you think they deal with rate hikes easily? They will fight for each rupee just as we fight for the same. But that is what makes our relationship so lasting.
  • CAS: Government to revert to Delhi HC next week

    CAS: Government to revert to Delhi HC next week

    NEW DELHI: The government is likely to revert to the Delhi High Court with a status report on CAS’ rollout early next week even as the Indian Broadcasting Foundation (IBF) has raised several queries on addressability’s efficacy.

    “A senior official of the information and broadcasting ministry admitted that it has to go back to the court with a feedback on CAS, but said it’s timing is still not clear.

    “One month for us would be calculated from the day we received a certified copy of the court order. As on 10 March, a verbal order was passed,” the official said.
    Still, the official also added that the court would have to be apprised of
    the progress on CAS front and “it would be done.” With diverse signals emanating from the industry stakeholders, the government is slightly confused, the official said.

    However, the deluge of facts and figures relating to CAS and various time lines proposed by stakeholders also gives the government some breathing space.

    On 10 March, the Delhi High Court directed the government to implement CAS in Kolkata, Delhi and Mumbai within a month’s time. The judgment came on a petition filed by some MSOs, including INCablenet and Hathway.

    While a large section of the cable fraternity has been pushing for quick
    implementation of CAS, a section of broadcasters and consumer organisations want a certain comfort level before CAS is rolled out.

    IBF AGAINST PRICE CONTROL UNDER CAS

    Meanwhile, the IBF in a submission to the government has said that there should not be any price control in a CAS-enabled regime and the issue of piracy should be addressed as a priority.

    “Under the Trai (sector regulator) recommendations to government for CAS implementation, presented on 1 October, 2004, it was recommended that there should be no price control in addressable markets. In view of this, we believe that for CAS notified areas, there should be no price fixation,” the IBF letter states setting the cat amongst the pigeons (read the cable operators).

    The letter, a copy of which is available with Indiantelevision.com, drops broad hints that pay broadcasters would not give a la carte price for consumers — something that has been in demand for over a year now during confabulations on CAS.

    “Broadcasters are whole sellers to cable operators as the consumer price for cable TV is fixed by the operators,” IBF has said, adding all pending litigations and outstanding dues involving the cable industry must be resolved before CAS is rolled out.

    Hinting that the claims of MSOs and cable ops on availability of set-top boxes might be exaggerated, the IBF goes on to state that effective steps should be taken to ensure that in the notified areas, adequate number of boxes is available with MSOs and last mile operators to cater to the demand.

    “There should be no instance that consumers want to install STBs and
    MSOs/LCOs are unable to provide them. MSOs/LCOs would also need to ensure that there is proper coordination between them and their LCOs. The MSOs/LCOs should provide a detailed STB implementation plan,” the IBF letter says.

    The broadcasters have also urged the government to ban carriage fee, which is demanded by cable operators and also given by most major broadcasters whether free to air or pay.

    “The IBF members are of the view that the government should make sure that cable operators not demand carriage fee from the broadcasters… in view of the fact that they collect subscription revenue from the subscribers,” the letter states.

    Another point raised by the IBF is that since CAS is being mandated by the government, unlike in other countries where market forces bring about its rollout, other addressable systems like DTH, IPTV and broadband should also be similarly mandated to create “a level playing field” for those platforms.

  • ”In the entertainment field there is nobody else who does what E! does’ : Kevin MacLellana – Comcast Entertainment Group, International president

    ”In the entertainment field there is nobody else who does what E! does’ : Kevin MacLellana – Comcast Entertainment Group, International president

    With the advent of digitisation in India, more international broadcasters are looking to launch channels in the country. A case in point is E! Networks. It runs E!, which focusses on Hollywood news, stories and features. It will also launch its fashion and lifestyle channel Style internationally later this year.

     

    E! Networks is looking to launch at least one, if not both of these channels before the end of the year in India. It is in talks with distribution networks to negotiate deals. Indiantelevision.com’s Ashwin Pinto caught up with Comcast Entertainment Group, International president Kevin MacLellan to find out more.

     

    Excerpts:

    Could you give me a brief overview of E!’s international business and the content it offers?
    E! has two sources of revenue. One is its programme sales. It has been selling foreign programming into foreign markets as far back as 1992. This was after it launched in 1991. Then in 2002 we started to sell the E! Network into foreign markets in 2002. Over the last five years we have garnered 46 million subscribers in over 100 countries.

    How important is Asia in terms of content consumption and revenue vis-?-vis Europe and the US? Which are your top three markets in this region?
    It is very important. The 46 million subscribers that I mentioned did not exist till five years ago. Over a third of E! Networks subscribers come from outside the US. Malaysia, Indonesia and Singapore are the top three markets in Asia. They account for 65 per cent of viewership in Asia.

    We have 12 feeds globally not including the US. In Asia there are three feeds.

    India is going through a period of digital transition with Cas and DTH. How do you view this market in terms of potential and has a timeline been set to launch E! and Style?
    The Indian market has always been extremely interesting to me. I was part of the team that helped launch Sony in the 1990’s. India has been interesting on account of the success of HBO. I was quite skeptical about how it would fare as I felt that Bollywood would be the programming that everybody wanted to see.

    Now it has become apparent to me that due to the upper echelon of Indian society in terms of the wealthier people with larger disposable incomes they have a significant interest in Hollywood films. From our perspective, India is a big market to reach for in Asia. The problem was that E! launched internationally pretty late in the game in 2002-2003. Analogue was pretty full by then.

    We had to find other platforms that had available capacity. We are so pleased to see DTH, IPTV taking off in India. We believe that the audience that has the money to invest in these platforms has a strong interest in Hollywood. We would like to launch E! and Style by the end of this year.

    The English entertainment and lifestyle segment in India is getting more competitive. What is E!’s USP that you feel will help it stand out from the other players?
    In general, entertainment and lifestyle programming is becoming more popular everywhere. In the entertainment field there is nobody else who does what E! does. We are the experts in Hollywood. We are not experts in Bollywood and to try and pretend to be anything we are not is a big mistake. We have learnt that by going into many markets, whether it is the UK, Italy, Japan, Malaysia.

    We cover Hollywood better than anybody else and this is what sets us apart. To find out everything on Hollywood and see it done in a high quality rich looking channel is what viewers expect from us.

    From Style’s point of view there are many lifestyle channels out there from the likes of Discovery and Scripps. Most of those channels appeal to 25-49 year old females. The Style channel has been successful in the US as it appeals to a younger female crowd. You are talking about a 12-34 year old female. Women at that age are just setting their buying trends. They are choosing brands that they will use for the rest of their lives. Style targets a young, technologically savvy woman. E!’s target is 18-49.

    The similarity between the two networks is that we are appealing to what we call the ABC1 demographic. This refers to a high income, highly educated, metropolitan audience.

    Over the last three years how has E! gone about creating awareness in Asia?
    Our aim was to go into each market and secure sophistication. There is no point in marketing unless you are strong in distribution. So what we have done is countries like Thailand, Hong Kong, Singapore, Indonesia is spending money with the local operators. Due to the limited distribution in all Asian markets doing general marketing like ads in newspapers makes very little sense. It is important to market to viewers who can access the channel.

    A good way to do that is to do marketing campaigns with the operators themselves. We do outdoor campaigns and it helps that E! has famous faces appear on the channel. We can do ads in print magazines with pictures of Brad Pitt, Angelina Jolie, Jennifer Aniston. The A-list names grab people’s attention a lot more than say an ad for a documentary would.

    In India you have licensing deals with broadcasters like Zee and Star. When you launch, will this side of the business get affected?
    Yes! I believe that there is an important mix between sales and channels. While we do sell content to channels it is important for the viewers to know that the main place to get E! content is on the channel itself and not on other networks. Viewers must know that the best place to get news on Hollywood is E!.

    However, to go back to the marketing issue, it helps to put a little of your content on the bigger networks with a broader reach. It helps familiarise the audience with the E! brand. I am sure that there will be a reduction in the content we sell once we launch.

    Right now, we do volume deals with Indian broadcasters where we sell 200-250 hours of programming. This will change. The number of hours sold will come down.

    Apart from India, China is a key market for most channels but has proven difficult to crack. What is your gameplan there?
    We have been lucky in China. We shoot the content ourselves. We own the rights. Other studios have financing partners and they all have some rights. We produce 1100 hours of programming. We do not acquire programming nor do we commission very much. We own our content across multiple platforms. We have the flexibility to be more realistic in doing deals in China.

    What has prevented some studios and production firms from being able to have a business in China is that they are inflexible in terms of what they are willing to do with their rights. We can sell 700 hours each year to multiple channels. On CCTV for instance there is an hour of content. CCTV can also use this content as they expand their broadband and mobile businesses.

    The disappointment in China is not our ability to sell there. It is to have our brand be available. However the good thing about China is that the rules for online are not as restrictive. So we can sell our content on television and maintain a brand presence online.

    What is the split between advertising and subscription revenues? What targets have been set?
    In Asia it is all affiliate revenues. There is no advertising. In Australia and New Zealand we have a significant amount of ad revenue – 35 per cent. In Latin America most of our revenue comes from advertising as is the case with the US.

    Our biggest goal is to launch Style later this year globally and to increase the subscription revenue of E!

     

    Are you looking at working with retail firms as well with Style as it is about fashion and accessories?
    What is good about Style is that it comes built in with a bunch of cross-promotional exercises. In the US the network has a lot of high-end brands. We have worked out global ad sponsorship deals. For instance, we do a programme that focusses on the Versace fashion shows.

    To what extent has E! Networks’ programming budget gone up over the last couple of years?
    It has gone up hugely by over 50 per cent in the past five years. Most of this is due to the amount of money being spent on high end reality shows. There was a time when reality shows were inexpensive. They are now becoming almost as expensive as scripted drama and comedy. Talent has become more expensive. In general I would say that there is more creativity in the reality genre.

    There was point when you had elimination reality shows and home based reality shows (like Big Brother) where you lock people in a house. Now you see reality shows that are based on game shows that are on mockumentary formats. This would be a hybrid scripted reality show. You will see more shows like MTV’s Laguna Beach, which is partially scripted and partial reality.
    ‘I believe that there is an important mix between sales and channels. While we do sell content to channels it is important for the viewers to know that the main place to get E! content is on the channel itself and not on other networks.‘

    What are the new shows that E! is developing?
    There is a show called Paradise City, which is similar to Laguna Beach. It follows the biggest performers of Las Vegas. One character can be a playboy bunny. Another one can be a rock star.

    Another show Sunset Tan looks at Beverly Hills, Malibu beach life. The wealthiest mansions and homes in the Summer become vacant. They rent for $30,000 a week from June till the end of August. Rich families from across the world come in. Their kids hang out in nightclubs, drive sexy cars.

    We are doing a show on the New York socialite scene. Our aim is to expand beyond Hollywood. We will look at other wealthy people who are becoming a part of what we call pop culture.

    I believe that you are creating original content for Asia. Could you shed light on this?
    We will premier a show called Young Hot Asia. This is a documentary about 15 of the hottest young Asian stars. They are making a mark not just in Asia but also in Europe and the US. There have always been the Jackie Chans. Chow Yun Fats and Michelle Yeohs but in the last three years you are starting to see Asian talent that nobody had heard of before making a noise
    overseas.

    We will do specials on film festivals held in Asia. We will look at how Asian content is influencing television content in the US and in Europe. Ideally with India there should be 70:30 mix of
    Hollywood and Bollywood content. We can also have the Indian perspective on Hollywood. We can shoot in India and focus on people who are fascinated with Hollywood.

    The problem is that since we are launching on digital tiers it cannot support a great deal of local production.

    You recently hired American Idol host Ryan Seacrest. How has he helped boost the channel’s profile?
    He has become more than just our news anchor. He is also our Red Carpet host like for the Oscar Awards. He is pretty much the spokesman for the channel now. Our news ratings have risen by 50 per cent.

    The median age for our news has dropped to 32 from 38 which is very low. It is also rare. National broadcast news tends to have a viewer age above 50. Ryan is bringing the younger American Idol audience with him.

    What are the challenges in doing celebrity news vi-a-vis regular news?
    Access is a challenge. The audience has an unending desire for gossip and for paparazzi type footage of celebrities. They want to celebrities particularly when they are not on the Red carpet all beautiful and made up. There is huge interest in looking at celebrities when they are not prepared. With E! our main source of content are celebrities and their publicists and agents.

    We have to ride the line to feed the audience what they want. A lot of people cover celebrities in a mean spirited way. We need to avoid that and provide the audience with what they are looking for. When cover celebrity news you have to remember that the publicists are very powerful. Unlike other kinds of news where you are just reporting the facts here you have publicists and PR agents who are constantly trying to skew the way we cover things.

    Don’t you get accused of pandering to the stars to get access?
    (Laughs) We are not a news company like CNN whose aim is to report in an unbiased manner. We pander to the stars on some shows but there are others where we do not. We have a documentary series E! True Hollywood Story that looks at stars who have fallen due to factors like drug use, sexuality, extra marital affairs.

    We are doing one on Kirsten Dunst who am I sure is not going to be happy about everything that is on the show. We did not get information by talking to her but through sources. It is covered in a very realistic, unflattering way. On the other hand Celebrity Profile celebrates stars. So we do both types of programming. We don’t apologise for it.

    What are the other channels in E!’s portfolio?
    We have a channel called Versus. It focusses on outdoor sports like skiing, hockey, snowboarding. It is not about extreme sports but sports that viewers are very familiar with. The other channel is G4 and it focusses on videogames. Its target group is boys 12-29. We will not launch Versus in Asia right away.

    That is because you buy sports regionally. So it is difficult to have a pan regional network for it. I am more interested in launching G4 in Asia and India. Internationally G4 will launch late next year.

     

    In India the government has banned FTV for two months. A similar fate had fallen on AXN at the start of the year. I would appreciate your views on government regulation.
    India is not quite as strict as Malaysia and Singapore. We have a feed for those two countries and the content is not as open as what we air in Australia and New Zealand. We could air the Malaysia and Singapore feed in India.

    This feed is more on the conservative side. As India grows I would eventually look at having a feed just for India. At the moment though the digital platforms in India do not make it economically viable to have a feed just for this country. Any international broadcaster who is planning to enter India and have a separate feed just for it has no plans to breakeven. When subscribers grow for our channel in India then we would look to have a separate feed and we would be looking for more leeway compared to Malaysia and Singapore.

     

    One challenge for media firms in the digital age is re-purposing of content for mobile and the Internet where consumption is increasingly taking place anytime, anywhere. How is E! going about this task?
    We have done well in this regard as we own all our content. Normally people who make films, dramas and comedies do not own the rights to their properties. We do not face this difficulty. Broadband and mobile can be done on a region-by-region case. We have group called Short Programming and New Media Content (Spanc).

    They launched a year and a half back and already everyday we put 90 minutes of streamed content up for mobile. It is a cut down version of the shows we make and the news that we provide. Operators can also take 20-25 minutes of clips either on a VoD basis or on a SVoD basis. Some operators only take the streamed content while others only take the VoD content. Some take both.

    Online we have a broadband channel called The Vine. It is available at E! Online. The site has 80 editorial people. The Vine is streaming video. One popular section is called Planet Gossip. It has video stream segments from gossip columnists all over the world.

    What role are merchandising and DVDs playing in helping E! diversify its revenue streams?
    I am just launching a DVD business. E! has never released DVDs overseas. We will be coming with an international DVD called Beverly Hills Plastic Surgery Secrets. It features 10 of the top plastic surgeons in Beverly Hills talking about the best way to do procedures. It looks at what procedures leave scars and which ones do not.

    How has E! Online boosted its content offerings?
    We cover entertainment news from an aspirational perspective. Other sites only have a section for entertainment news. Some sites cover entertainment from a paparazzi, lowest common denominator view.

    We were profitable through the dotbomb era and it is still profitable. Our site has been profitable for the last seven years.

    E! Online 2.0 will launch this Summer. This will have social networking. So people can chat about their favourite stars. They can go into our library, find photos of their favourite stars and swap them with each other. One can upload one’s photo of a star if one has a digital camera. Taking photos of stars is happening more frequently in Los Angeles.
  • Media Partners Asia: Cable the ultimate key to India’s broadband digital future

    Media Partners Asia: Cable the ultimate key to India’s broadband digital future

    This is an executive summary of a Viewpoint Paper presented to the Prime Minister’s Office on 16 March 2007. The Paper was produced by research firm Media Partners Asia (MPA), and also supported by Liberty Global, Inc; Macquarie Media Group and Star Group.

     

    The current cable industry, which already contributes 0.6 per cent directly to GDP, has the potential to increase this direct contribution exponentially, if it maximizes its broadband digital potential and attract investment. To do this, cable needs to be seen by the Government of India as the significant platform in the national economic context and as the key driving national broadband digital growth. Therefore, it needs higher priority in policy planning and a framework that allows it to maximize value.

     

    Cable today in India is the dominant last mile pipe, connected to 20 million more homes than fixed line telephony. Cable TV already connects an estimated 71 million homes and almost 60 per cent of homes that own a TV set subscribe to cable TV, with India overtaking the US in 2006 to become the second largest Cable power in the world. Projected to further establish its status as the leading last mile network, cable will, serve more than 100 million TV homes by 2010. Its size and scale, if harnessed, presents a great opportunity to drive broadband digital deployment.

     

    What is needed is an influx of capital an order of magnitude greater than currently exists. However, investors say that sentiment on broadband digital development in India is being somewhat dampened by the regulatory framework, which has grown too intrusive and harmful to long-term growth. As a result, investors are still cautious about funding long term broadband digital network upgrades when regulation imposes strict controls on the pricing of new capital intensive services. Concerns have intensified with the regulation for the deployment of digital conditional access systems or CAS in India. While all investors are agreed that CAS will provide a significant impetus to the deployment of broadband digital networks, they think it will work only in a less tightly regulated context.

     

    Shane O’Neill, Chief Strategic Officer & Board Member, Liberty Global Inc., says: “The market is very attractive in terms of sheer size and growth potential but could be held back by ‘over regulation’ in key areas such as channel rate regulation, mandated revenue shares between industry participants and FDI caps. A lighter approach might be necessary to encourage the significant investment required to develop the broadband and digital industries both of which are very important for India’s future development.”

     

    Alex Harvey, MD of Macquarie Media Group, adds, “We think India’s cable businesses, due to their ability to offer a range of converged services, will be material areas of growth and opportunity. A key element to realising these growth opportunities will be a transparent and proactive regulatory environment – this must be a priority area of government focus.”

     

    Paul Aiello, the new CEO of STAR Group says: “The stakes are high for policymakers and the regulator to get it right, ensuring progressive policies that facilitate investment and growth.”

     

    Investors are eyeing many deals in the cable broadband/digital space… one of the complications for some of the larger investor groups is how the current regulatory framework will play out – the current restrictions on revenue share, channel distribution and pricing are not optimal for investment, especially as there is no concrete signal was to when these restrictions will be lifted.

     

    (The views expressed here are those of the author and Indiantelevision.com need not necessarily subscribe to the same.)

  • IOL Broadband to soon offer 3 main bouquets on IPTV

    IOL Broadband to soon offer 3 main bouquets on IPTV

    MUMBAI: IPTV service platform IOL Broadband has announced that it is set to offer the three main channel bouquets available in India – Star, Set-Discovery OneAlliance and Zee Turner – totaling to over 60 Premium Pay IPTV channels along with 90 free-to-air channels.

    The announcement comes ahead of IOL’s “imminent” commercial deployment of IPTV in the country.

     
    This represents a watershed event in that a credible option to CAS & DTH has now become available for the first time in India, the company asserts.

    Company director AS Oberai said that with the introduction of commercial services by IOL IPTV on fibre and ADSL networks; India has joined an elite club of developed countries like Japan and Korea where IPTV has been recently introduced.

     
    IOL is deploying IPTV all over the country after integrating proven technology providers, a company release states.

  • Manthan goes online with Irdeto for Cas

    Manthan goes online with Irdeto for Cas

    MUMBAI: Kolkata-based multi-system operator (MSO) Manthan Broadband Services has integrated its enryption system using the Irdeto system and has gone totally online with it.

    Manthan is deploying the Irdeto Digital TV solution as part of its analogue to digital migration project in Kolkata and outlying areas. “We have totally gone online with the Irdeto system,” says Manthan director Gurmeet Singh.

     
    Irdeto will provide Manthan with it’s newest smart card, the Irdeto Zeta Card. The Zeta Card contains advanced security functionalities like Irdeto’s patented FlexiFlash technology for the rapid, secure deployment of new functionalities and security upgrades, as well as an advanced DRM feature that can be used to enforce business rules for content stored on personal video recorders.

     
    Says Irdeto CEO Graham Kill, “Irdeto is providing a next-generation digital TV solution and support services to help Manthan expand the digital era in India.”

  • TDSAT upholds Rs 5 tariff by Trai, imposes costs on ESPN Star and Set Discovery

    TDSAT upholds Rs 5 tariff by Trai, imposes costs on ESPN Star and Set Discovery

    NEW DELHI: The Telecom Disputes Settlement Appellate Tribunal (TDSAT) today upheld the tariff of Rs 5 per channel fixed by Telecom Regulatory Authority of India (Trai) against which three broadcasters had appealed. It also imposed a cost of Rs 50,000 for each of the broadcasters in favour of the sector regulator.

    In its pronouncement on the appeal filed by Set Discovery, ESPN Star Sports (Singapore) and ESPN Software India, TDSAT held that the case was devoid of merit, and thus the appellants are liable to pay costs, totaling Rs 150,000, to Trai, which had proved its case.

    In a related development, some of the respondents in the case that includes Trai, Indus Ind Media and Communications Limited, and Hathway Cable & Datacom Private Limited, have filed a Caveat in the Supreme Court, since the broadcasters are most likely to appeal against the TDSAT order in the apex court.

    While giving its ruling, TDSAT said that the broadcasters had themselves said that 70 to 80 per cent of their revenues come from advertisements, and the bench noted that “at various fora”, it has been argued by the broadcasters that they also generate revenue through sub-licensing and through fees paid by consumers in sending SMSs to the channels.

    It held that the same broadcasters had said that due to underdeclaration by LCOs and MSOs, they get only 20 per cent of the subscription revenue actually generated.

    The tribunal noted that under the Cas regime, wherever Cas has been implemented, there is no longer a question of underdeclaration, and therefore, data on subscription revenue is 100 per cent.

    In this situation, whereas the broadcasters were – as they themselves said – earning only 20 per cent from subscription, the Trai order on Interconnection gave them 45 per cent, which is a sea change.

    Hence, going by the arguments of the broadcasters themselves, the case is devoid of merit and liable for dismissal, with a cost of Rs 50,000 per appellant.

    The tribunal, comprising the full bench of chairperson Arun Kumar, and members DP Sehgal and Vinod Vaish, made the following observations:

    “We have carefully considered the procedure undertaken by Trai for conducting the exercise. We have also considered the justification for the regulation. We find that the approach of Trai in regulating the CAS regime at its introductory stage in the notified areas is fully justified.

    “We find nothing wrong in the process undertaken by the Authority. In this connection we note that the Trai was conscious of its difficulties and the problems which it had to face while conducting the exercise.

    “It was a virgin field and the Chennai model could not serve as a good guide. The exercise was complex and it was made all the more difficult by the non-cooperative attitude of the broadcasters. In the given circumstances, Trai, in our view, has acted fairly by balancing the competing interests.

    “The Authority has promised to revisit the issue, including consideration of deregulation if the circumstances so warrant. The experience to be gained after introduction of CAS would enable it to reconsider everything.

    “This being a transitory phase, the appellants ought to have had patience and ought to have waited till Trai was able to revisit the issue. The hurry on their part to raise the issue before this Tribunal was not necessary.

    “We also cannot help observing that the broadcasters are either unmindful of the fact that they stand to gain in the CAS regime or they are intentionally feigning lack of knowledge of this fact.

    “To say the least, they have not been fair in placing their case before us. We find no merit in these appeals. They are liable to be dismissed. We order accordingly. Appellants will bear the costs of the Respondent, Trai which we quantify at Rs 50,000/- for each appeal. Costs are awarded only in favour of Trai,” the TDSAT order concluded.