ITV

Tag: CAS

  • Toon Disney is FTA in Chennai, Trai clarifies

    Toon Disney is FTA in Chennai, Trai clarifies

    NEW DELHI: Toon Disney in English and in Tamil are distributed as free-to-air (FTA) channels in the areas covered by conditional access system (Cas) in Chennai.

    The Telecom Regulatory Authority of India (Trai) clarified today in a release, placing the details of maximum retail prices fixed by the broadcasters in respect of Cas areas on the basis of the reporting done by them in terms of clause 7 (ii) of the Tariff Order of 31 August last year.

    The change had been made as the Authority was informed that some of the pay channels listed in its website are not pay channels in some of the notified areas and also some new pay channels for the CAS notified areas, have been reported, asserts an official release.

    TRAI has accordingly updated its list of channels with the charge per channel.

    Meanwhile, CAS has come into effect in South Delhi and some parts of Mumbai and Kolkata. Cable operators had begun blacking out pay (encrypted) channels from the evening of 31 December itself.

  • ‘An outlook towards the future of Television’

    In this article, penned for Indiantelevision.com, Media e2e chief evangelist Atul Phadnis is of the view that the media landscape is changing rapidly and new distribution technologies would alter business models.

    As 2006 comes to an end, some of us, who had embarked on a new journey of creating a new thought within our industry, feel vindicated. The key changes that we had envisaged, envisioned and expected are taking place rapidly within our media & entertainment (M&E) environment. These changes are in terms of distribution platforms, newer business models, interactivity, new content formats and experimentation. This piece looks at the change catalysts and an outlook on how things would continue to develop within our space.

    End of distribution platform insulation

    Before we look at the current and future, a quick glance at the past. The history of TVs popularity among consumers can be gauged from the amount of advertising on satellite TV chasing consumers. As veteran industry folk would recall, the early 90s was all about DD when only experimental advertising monies would come onto satellite channels. In the mid-90s substantial chunks of budgets were diverted into satellite channels. By the late 90s and early 2000s, the satellite TV environment had reached a level of stability and maturity. Here’s where the story takes an interesting u-turn. The legislation changed and allowed newer distribution technologies on the scene. These new technologies ended the technology insulation that persisted in India vis-?-vis other Asian markets like Hong Kong, Korea and Japan.

    Distribution: set to change the ground rules

    Globally, whenever distribution channels explode, it sets off a chain reaction in terms of market segmentation, newer revenue opportunities, newer pricing models. The hectic activities since early 2000 to present day on laying cables, dishes, optical fibre, upgrading cable facilities, are today creating competition among satellite TV platforms such as DTH, HITS, IPTV, CAS, and even traditional cable.

     

    Creating the ‘Long Tail’

    For those who have read Chris Anderson’s book The Long Tail: Why the Future of Business is Selling Less of More (2006) would immediately associate that phenomenon with what’s happening with our television today. The Long Tail phenomenon occurs when distribution platforms become very large helping the smaller products collectively gain market share rivaling that of market leaders!

    The TV business has been growing a long tail as niche content offerings are getting acceptance in small pockets. Take the example of television news. Already, the kids channels are going the same way as the news channels. Animated, non-animated, teens, tweens, pre-teens! The good news – each of the niche segments that have been launched has shown Viewership.

    If the current trend continues and if distribution platforms get more and more addressable, one can imagine channels aimed at extremely niche communities. Surgeon’s channel, lawyers channel, chartered accountants channel to weather news channel, celeb news channel to even a Mumbai traffic channel! Considering that some of these formats exist in other economies expecting that in our environment seems fairly reasonable.

    Specialization to Segmentation

    The specialization in this industry is already segmenting the market. Groups of consumers who are watching specialist programming are extending the long tail of content. The specialist content has an impact on TV programmers and the TV production houses as resistance to experimentation could lead to certain death or marginalization. This impact should mostly be felt immediately post the universe adjustments of the TV ratings panels to latest estimates.

    Applications, on-demand

    Our environment is also critically poised to propel demand for applications that satiate this new consumer thirst for content which is typically instant and on-demand. Considering that for a bulk of Indian consumers, TV-watching emerges in the Top-5 daily activities, it’s not impossible to imagine the lengths to which consumers could go to better that experience. Gadgets like Digital Video Recorders (DVRs), Video on Demand (VoD), Personal Video Recorders (PVRs) can do exactly this if the pricing gets it right.

    Content mobility, malleability

    The consumer need for on-demand content in other Asian markets has made content both mobile and malleable. Content mobility is to do with being able to record and transfer content off television onto your phone, laptop or desktop. The last few months I have been an amazed, animated user of Bluetooth and the possibilities that emerge from being able to transfer data, music, and video from one device to another. Content malleability is something that TV, music and film companies would have to learn else the consumer is going to teach them a thing or two!

    Newer contact points via localization

    The newspaper business in the last 3 years has been growing faster on ad revenues than television. It’s done so on the back of distribution changes and reform that has resulted into micro editions. That has in turn propelled localized advertising through a slew of first time advertisers on print. The same is bound to happen to television. The only question is the timeframe. Local pizza stores, restaurants, banks, grocery and electronic retail, multiplexes would all jump in if micro-reach was possible via TV. It’s not as if all that is not possible today via local cable and regional stations. It’s possible and it’s happening. But while regional channels still score, there are questions on quality and popularity of local cable advertising.

    Branded Entertainment : winds blow stronger

    The Branded Entertainment Awards 2006 held in Mumbai have demonstrated a new industry-wide vision in this space. The promise that this specialist stream holds is that in a perpetually fragmenting media scene, TV could be used via innovation, integration and multimedia support. Activation is the powerful new word in this area and it’s expected to be initiated by regional channels. Activation would derive tremendous strength either from channels promising micro-reach or distribution platforms undertaking sampling/ contact programs. One of my recent favorites is a DTH company distributing sample set-top boxes to school children preloaded with education channels!

    Distant possibilities

    What seems to be now distant in our market but is very prevalent in the West and some parts of Asia is CGM or Consumer Generated Media (such as Blogs, and home or personal videos). This is a current rage even in the US if one is to see the popularity of sites such as YouTube. Low penetration of capture devices in India would typically see this as fairly futuristic. Having said that we are seeing news channels in India currently test this through Viewer reported stories.

    Finally in conclusion – expect key changes in television that’s bound to affect all stakeholders. These changes are expected to alter business models, revenue models as well as content formats.

    And the creatures aren’t too far away from us now. Stop! I hear the door creaking open. Wait! I can hear them growl…

  • ‘Trai has kept entry barrier low to make Cas acceptable’ : Nripendra Misra – Trai chairman

    ‘Trai has kept entry barrier low to make Cas acceptable’ : Nripendra Misra – Trai chairman

    The cable TV industry is on the cusp of change. The multi-system operators (MSOs) have chalked out plans to roll out digital cable, a transition that they believe will make their business models viable and add value to their networks.

     

    Perturbed by the cap on a la carte pricing of their channels at Rs 5, the broadcasters, on the other hand, have taken shelter in legal cases.

     

    Crucial to making Cas (conditional access system) a reality has been the role played by the Telecom Regulatory Authority of India (Trai). It has not only come out with a consumer-friendly tariff order but also made sure that progress is made by the MSOs on the implementation front.

     

    In this interview with Indiantelevision.com‘s Sibabrata Das, Trai chairman Nripendra Misra reiterates that digitalisation is the way forward. Cas will be implemented and even regulating direct-to-home (DTH) in areas of quality of service is on Trai‘s radar.

     

    Excerpts:

    How ready are the multi-system operators (MSOs) to implement Cas in the notified areas of Mumbai, Delhi and Kolkata?

    The progress is satisfactory and let there be no doubt in the minds of stakeholders that Cas is going to be implemented on the due date. There is no element of uncertainty. We already have reports of 10 MSOs (as of 16 December) having conducted the trial runs for testing out their digital systems under Cas. We want to be sure that there are no glitches in implementation of Cas and that the transition is smooth.

    In Delhi, Spectranet, Satellite Channels, Sanjay Cable Network and Star Broadband Services have been issued letters by the information and broadcasting ministry that they are not in a position to switchover to addressable system by 31 December as they are not ready with the digital systems including headend, Cas and set-top boxes (STBs). What is the action Trai has taken?

    There are four networks who we found are not in a position to roll out their service. We have asked the other MSOs (Hathway Cable & Datacom, Incablenet, Wire & Wireless India Ltd. and Home Cable Network) to step in so that consumers falling under the Cas belt of Delhi do not suffer blackout of their cable TV service. We are constantly monitoring the progress made by the MSOs.

    How many MSOs have applied for licence and got approval to operate in the Cas areas?

    There were 21 MSOs and five more applied later. Our focus is on 21. Out of this, as I told earlier, 10 (as of 16 December) have started trials.

    Estimates are that there are around 1.2 million cable & satellite homes in the Cas areas. Have the MSOs brought in adequate number of STBs?

    There are already a total of over 300000 boxes available with the MSOs. It is tough to estimate the exact number of C&S households in the Cas region. The whole cable TV industry is marked by high levels of under-reporting of subscribers. But supply shouldn‘t be a problem as the MSOs say that they can quickly import the STBs in case of demand. Their argument is that they shouldn‘t be stuck up with investments if Cas, for any reason, doesn‘t pick up. We expect 40 per cent of analogue subscribers converting into digital. That apparently is in line with the global trend. Digitisation is a way forward and consumers falling under the Cas notified areas should start ordering for STBs from now so that there is no crowding towards the end.

    What gives you the confidence that Cas will take off this time?

    Unlike in 2003, we now have a broadcast and cable regulator in Trai. We have kept the entry barrier as low as possible so that Cas can get accepted by everybody. Consumers also can select individual channels and we have fixed a price cap on a la carte channels at Rs 5. The tariff order also means that STBs are available on rental schemes with a fixed deposit amount (Rs 30 per month on a deposit of Rs 999 and Rs 45 for a deposit of Rs 250). Besides, this time there is competition from direct-to-home (DTH) with DD Direct, Dish TV and Tata Sky already offering their services. In fact, we have found medium-sized MSOs in some non Cas areas investing around Rs 15 million on diogital headends so that they can compete against DTH.

    The average monthly bill for digital cable TV subscribers will not see a sigificant drop as they will be loaded with an entertainment tax of Rs 45 (other areas different), Rs 45 as rent on the STB (if they pay a deposit of Rs 250) and a service tax. Add to this a payout of Rs 77 on free-to-air (FTA) channels and there is a slim chance of lowering down the bills. Would you agree?

    We shouldn‘t be talking of a system where we do not pay taxes. The taxes are applicable even under the current system. That is no way to calculate the cable TV subscription rates. Consumers can now pay as little as Rs 5 for the channel they want to see and limit their bills.
    ‘Regulating DTH in the quality of service area is certainly on our radar‘

    Will the rental schemes attract value added tax (VAT)?

    Yes. In any case, taxation is not a subject which falls within the purview of Trai.

    Consumers complain that costs will go up as they have to pay for the second TV set as well?

    We have decided not to regulate on the concessional rates for the second or more TV sets. Market forces should take care of that – as has been happening now. In any case, a large percentage are single TV households. We shouldn‘t regulate wherever we can, but only in areas where there is need.

    How long will this price of Rs 5 and a minimum subscription commitment of four months for any channel last?

    We are open to taking a relook at this. As we determined on a price as low as Rs 5, we also decided to balance it by asking consumers to subscribe a channel for at least a period of four months. After six months, we intend to first assess whether a review on the pricing and other related issues is necessary at all or not.

    Are you looking at coming out with some kind of regulations for non Cas territories?

    We are considering if we should step in and regulate the non cas areas so far as quality of service is concerned.

    Will Trai try to encourage various modes of digitalisation?

    We have a forward-looking approach. We generally feel digitisation is the road ahead. Besides mandated Cas, we are looking at voluntary spread of digitisation across all technologies. We will be having a serious of discussions from January-June. The first round table kicks off on 27 January. There are various alternatives – DTH, Cas, IPTV. We will be having a series of regional meetings where we want to discuss and review all these things. Then we will send our recommendations to the government.

    Is Trai going to regulate DTH as well?

    Perhaps, we need to look at regulating DTH in the quality of service area. It is certainly on our radar. As the DTH base grows, subscribers need to be protected. But DTH is at an infant stage and it may be too early to regulate it like cable. Let us not forget that cable TV has grown in India so far as an unorganised industry.

    As the DTH base grows, subscribers need to be protected. But DTH is at an infant stage and it may be too early to regulate it like cable. Let us not forget that cable TV has grown in India so far as an unorganised industry.
  • ‘Fall in STB prices make digitisation affordable in low ARPU countries.’ : Dr. Abe Peled – NDS chairman & CEO

    ‘Fall in STB prices make digitisation affordable in low ARPU countries.’ : Dr. Abe Peled – NDS chairman & CEO

    With conditional access system (Cas) coming in next year and DTH already in, the time is right for television technology firms to take a serious look at India. One such firm is NDS, which provides technology solutions for digital pay-TV. It has opened a dedicated sales and support operation in Mumbai. Indiantelevision.com’s Ashwin Pinto caught up with NDS chairman and CEO Dr. Abe Peled for a lowdown on the company’s plans and the emerging digital age.

     

    Excerpts:

    For NDS, DTH is a high revenue earner. How is the company gearing up to new delivery technologies, particularly at a time when investments are coming into IPTV and growth in DTH subscribers is slowing?

    The market for satellite is getting competitive and complex because of triple play. We have 70 per cent of our revenues coming from DTH. We expect our growth in this area to stay strong as DTH service providers are going in for advanced technologies. We will benefit not primarily from subscriber growth but because of penetration of new technologies. We, for instance, have shipped 4.2 million digital video recorders (DVRs) and there is a scope for explosion in this segment as prices drop. But we realise that IPTV is also offering opportunity and have 14 different contracts including Yahoo in Japan which has 200,000 subscribers.

     

    You have just acquired for $107.5 million Jungo Ltd. which is a leading provider of software for residential gateways. Will this help you penetrate the broadband television market?

    It will definitely help us better serve the telecom network operators to offer reliable video over broadband services. We are looking at acquisitions in the IPTV and mobile space even as pay-TV operators are looking at different delivery platforms.

     

    With Cas coming in next year and DTH already present, how is NDS tapping the growing opportunity in India?

    We actually started selling our products in India three years back with Hathway Cable & Datacom. The reason why DTH and Cas are coming in now is that the technology is sufficiently inexpensive to be able to be used even in countries where subscriber revenue is a few dollars each month. The first set-top box (STB) launched by DirecTV in the US cost $700. But now the cost of the STB is below $50. Also, the cost of digital compression has fallen. All this makes digitisation affordable in countries which have low ARPUs (average revenue per user). China and India are key growth markets for us.

    NDS is seen as a high-cost encryption system. Do you have a pricing strategy for the low ARPU countries like India?

    We have a product called VideoGuard which addresses this issue. There is a myth spread by our competitors that we are not affordable. We are very competitive and cable operators will have to take a long term view. It is not the Cas mandate that they have to service but also look at interactive features. Besides, we see a consolidation take place in the cable TV industry here.

     

    DTH has grown wherever there has been premium content. How do you see the Indian DTH market evolve?

    I have a word of caution. While we would like to supply technology to lots of people, the experience is that in satellite very few places have room for more than one player; it is just not cost effective. In France, the two operators merged this year. The US has two operators as it is a large country. So maybe India will follow the US. But surely there can’t be space for so many players who have expressed their intent to join the fray. Exclusive content is also not allowed and the sectoral cap on DTH of 20 per cent stake by broadcasters can seriously hamper big capital coming into the business. But Tata Sky is off to a good start. And with DVR prices falling, we see it as an incentive to push digitisation.

     

    Are you in talks with the major telcos like Reliance Infocomm for IPTV?

    We are looking at expanding business in India and are in talks with several companies. But I can’t give any specific details. We have opened office in Mumbai specifically for this purpose.

     

    Are you also ramping up the research and development facility in Bangalore?

    We have almost 600 people in our Bangalore lab and are still hiring. We have just moved into our new office premises which can house double the capacity we are operating in now. Bangalore is a key part of our research and development operations. The EPG (electronic programme guide) was developed out of here and the middleware was adapted for our two clients, Tata Sky and Hathway, in India.

    What are the challenges that lie ahead for NDS?

    As the media landscape changes, pay TV operators are facing more competition. There are new modes of delivering and distributing content that perhaps bypass traditional avenues. Our challenge is firstly to help our pay TV customers embrace new technologies and broaden the entertainment experience that they offer. At the same time, we want to work with telecom firms or people who want to distribute content directly to the PC or are keen to get into triple services play. We will be an enabler in this changing, fluid media landscape.

     

    How has NDS been able to quickly identify consumer tastes and preferences with evolving technology?

    While consumers are not our direct customers, our success critically depends on them enjoying the entertainment experience. For example, in the early days of interactive television the first instinct was to say that we will allow consumers the technology to access the web to view television. We did not do that, as we understood that is not the case. We, instead, moved towards enhancing the television experience, which means interactive sports and other programmes. Companies came to us wanting to sell stuff through interactive TV. MTV wanted to sell music CDs. But we learned quickly that there isn’t a good enough business model to do that. The margins are not enough after you account for all the costs. We focussed on things that allowed channels to increase their viewership share like interactive quizzing. This way they could hike their ad rates. One of the key lessons was that T-commerce does not really work. We are working with Nickelodeon in the UK for games that you can overlay onto the programme.

     

    There is something called Pie in the face. So if you score enough points you can throw pie on an actors face. These things enhance the television experience.

    Is there a resistance from consumers for digital TV?

    The only resistance from the consumer is the price. They appreciate what the DVR and EPG have done. Price is determined by two factors. One is the absolute cost of the technology, which is coming down. Second is the business model of the operator. Will they bundle the cost into subscription and spread it out over several years or expect consumers to pay upfront? That is what dictates the rate of adoption. If the payment asked for upfront is modest, the adoption is quite quick. If the upfront is higher, the adoption is slower.

    What are the key markets for NDS in terms of revenue?

    The US accounts for 35 per cent of our revenues while 20 per cent comes from the UK. Asia is about 11 per cent. Our hope is that in five years time Asia will contribute at least 20 per cent. Last year in China, one million STBs with our technology were deployed in Shenzhen. This year we expect three million deployments.
    ‘Market for DTH service providers is getting competitive & complex because of triple play‘

    Has China been a more difficult market to penetrate vis-a-vis the rest of Asia as you need to show demonstrable commitment and the fact that the Chinese government takes a personal interest in how TV technology develops?

    The Chinese government takes an active interest in content. I don’t think that it takes a greater interest in technology than governments in other countries. We have a small development lab in Beijing as we are committed to it. The challenge is that there is no premium content that an operator can offer. So digitilisation is a result of government initiatives rather than a demand from consumers for getting more premium content. NDS has contracts with the larger Chinese provinces.

    How is NDS coping in the face of competitors like Kudelski and Irdeto?

    In terms of scale, NDS has 66.6 million STBs deployed worldwide. Irdeto has two to three million. Kudelski, a Swiss firm, is our main rival but we are ahead. The fact that we have so many deployments gives us the scale to invest in research and development. That enables our technologies to be more sophisticated and secure.

     

    Secondly NDS has a much broader offering for pay TV operators. While conditional access is necessary, you have other technologies like interactivity and games. None of our competitors have this broad range of technological capabilities. It is not just about providing Cas but also about providing an enhanced experience. We are at much better place to do that vis-avis our competitors. Our competitors can offer price but we are competitive there as well.

    NDS recently was ranked as the top research and development investor among all UK-based software companies. Could you talk about your R&D centers and their importance?

    We believe in being a leader in television technology. We spend over 30 per cent of our revenues on research and development. We have centres in Israel, UK, Bangalore, France, Korea, US etc.

    Is NDS also working in the mobile sphere which allows for content viewing anytime, place?

    We have a DVB H system that we are doing trials with. Korea is the most advanced country in terms of mobile deployment. We are doing a trial there with WiFi Hotspots. If you go into that Wi Fi it will pick up different channels that you can watch by streaming.

    Finally what are the major changes you see in the digital television landscape five years from now in India and Asia?

    A large percentage of homes will have a box. It will offer interactive TV. A percentage of that will be DVR I would hope at least eight per cent. A similar percentage will have broadband capabilities. I am not sure about the potential of High Definition. It will be a small percentage.
  • WWIL in drive to acquire LMOs

    WWIL in drive to acquire LMOs

    MUMBAI: Wire & Wireless India Ltd (WWIL), the cable outfit of Zee Network, is on a drive to acquire last mile operators. The company is offering to cable operators a valuation of Rs 2,000-3,000 per subscriber. While WWIL will be a 51 per cent partner, the balance 49 per cent will be with the operators.

    “We want to expand the size of our network. We are making proposals to operators with decent size where we become partners with 51 per cent,” says WWIL CEO Jagjit Kohli.

    WWIL has acquired control over 5 Star which operates in Andheri, a western suburb of Mumbai, adds Kolhi. “We have also poached a few operators from Incablenet in Andheri East and others from multi-system operators (MSOs) are going to join us.”

    WWIL, which doesn’t have a presence in South Mumbai, is also targeting operators in that area. The MSO has linked up optic fibre and is keen to start operations in this lucrative part of the Mumbai market. The government has notified south Mumbai as the area where CAS (conditional access system) will kick off on 1 January.

    WWIL is also planning to launch a headend-in-the-sky (HitS) platform and has expressed its intent to broadcasters. “We are going to do HITS. This will provide us a wider footprint and hasten the pace for digitisation in the country,” says Kohli.

    The buzz in the market is that WWIL is booking seven transponders on Thaicom 5 for the HITS operations. When queried on this, Kohli declined to comment.

    The problem with HITS, however, is that broadcasters are reluctant to get into agreement with MSOs for providing their channels due to fear of piracy.

    Even as WWIL sweetens its proposals to rope in last mile operators, it remains to be seen how big the impact will be in the cable TV industry. If migration from rival networks take place, it will set the pace for a fresh bout of price and dirty wars on the ground. As Hathway Cable & Datacom managing director and CEO K Jayaraman had told Indiantelevision.com earlier in an interview: “As far as poaching of operators go, it is an open ground. Cable companies who focus on good service and have capital to create capacity will turn out winners. Competition is not a one-way street.”

  • Hathway selects Magnaquest as SMS provider for digital pay TV operations

    Hathway selects Magnaquest as SMS provider for digital pay TV operations

    MUMBAI: Hathway Cable & Datacom is integrating its broadband and digital pay TV billing solutions. The multi-system operator (MSO) has selected MagnaQuest as its subscriber management system (SMS) provider for both the services.

    Earlier, when conditional access system (CAS) was to be implemented in 2003, Hathway had chosen Entriq (formerly known as Mindport as the SMS provider.

    Hathway was already using MagnaQuest’s MQSubscribe, a customer management and billing solution (CMB), for the past two years. “Eventually broadband, digital cable and voice services will converge. So we decided to deploy MQSubscribe for rolling out our digital pay TV services as well. We have been successfully using their billing solution for our broadband internet business for the past two years and found the system to be robust and scalable,” says Hathway Cable & Datacom MD and CEO K Jayaraman.

    Hathway Cable & Datacom will use MQSubscribe to handle subscriber information, billing, inventory and logistics management and customer care. MQSubscribe is seamlessly integrated with NDS CAS for automatic activation and deactivation of subscriptions.

    Says MagnaQuest CEO Vijay Debbad, “Apart from our domain expertise, solution flexibility and scalability, we believe it is our commitment and understanding of the Indian Pay TV industry that has enabled us to be chosen by Hathway Cable & Datacom.”

    MagnaQuest recently bagged a contract to manage the broadband and Voice over Internet Protocol (VoIP) billing services of Hyperia Ltd, Nigeria’s leading internet service provider.

  • Upscale commercial establishments to pay market rates for pay channels: Trai

    Upscale commercial establishments to pay market rates for pay channels: Trai

    MUMBAI : In an order issued today, the sector regulator has decreed that pay broadcasters will now be able to charge “market rates” to more upscale hotels and big commercial establishments that access their channels.

    The Telecom Regulatory Authority of India (Trai) has stated that the tariffs of pay channels as well as set top box rentals will be left to mutual agreements and market forces in both CAS and non-CAS areas “subject to restrictions on maximum bouquet price in relation to sum of individual channel prices”.

    For the purpose of tariff regulation, Trai has identified two categories of commercial subscribers. One category consists of hotels with a grading of 3 star and above and heritage hotels. This category will also include any other hotels, motels, Inns and such other commercial establishments providing board and lodging and having 50 or more rooms. In the second category would fall all other commercial establishments.

    The regulator has grouped the rest of commercial establishments into the residual category and decreed that the same rules that govern ordinary cable subscribers will apply to them also, both in CAS and non-CAS areas.

    Taking note of a point made by pay broadcasters with respect to clubs, pubs and other such establishments, Trai’s tariff orders also provide that whenever “any commercial cable subscriber uses the programmes of a broadcaster for public viewing by 50 or more persons on the occasion of special events at a place registered under Entertainment Tax Act, then also the tariff will have to be mutually decided between the parties concerned.

    The pricing formula Trai has worked out is:

    I. The maximum retail price of any individual channel shall not exceed three times the average channel price of the bouquet of which it is a part.

    For example, if the maximum retail price of a five-channel bouquet is Rs 150 per (average channel price of Rs 30), the maximum price an individual channel can be priced at is Rs 90.

    II. The sum of the individual maximum retail prices of the channels shall not be more than 150 per cent of the maximum retail price of the bouquet. Therefore, the total a la carte pricing all these five channels together can charge would be a maximum of Rs 125 (Rs 150 + Rs 75).

    Trai issued the order after the Supreme Court agreed with its argument that in order to ensure an orderly growth of the telecom sector in the country, it was necessary to have differential tariffs for commercial and non-commercial subscribers of conditional access system (CAS).

    Trai’s submission was in response to a petition filed by the Association of Hotels and Restaurants, which challenged an order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that upheld the dual rates.

    Trai had placed the draft Tariff Orders, both for CAS notified areas and non-CAS areas, along with a letter to stakeholders inviting comments by 10 November.

    Broadcasters see Trai’s decision as a positive step towards generating subscription revenues. “Business will see at least a three-fold jump,” says Novex Communications head Ketan Kanakia.

  • IndusInd Media appoints Samson Jesudas as chief marketing & distribution officer

    IndusInd Media appoints Samson Jesudas as chief marketing & distribution officer

    MUMBAI : IndusInd Media and Communications Ltd (IMCL), which runs the media business of Hinduja TMT including Incablenet, has appointed Samson Jesudas as its chief marketing and distribution officer, ahead of CAS (conditional access system). Jesudas moves in from Zee Turner where he was serving as assistant vice-president, looking after the western region.

    In IMCL, Jesudas will be in charge of marketing and distribution of all products and service offerings of IMCL. This will include digital set-top boxes (STBs) in CAS areas and expansion of internet business to new cities. He will also evolve and execute different marketing schemes for all products and services.

    IMCL is planning to add new channels through its STBs. Jesudas will look after media content and also liasion with ground distribution, broadcasters and content providers. He will also provide market intelligence support to identify and exploit growth opportunities while coordinating with finance, technical and customer care divisions.

    Before joining Zee Turner, Jesudas was working in Pehla in the Middle East and in Star India’s distribution team.

  • CAS rollout: MSOs look to channel package tiers

    CAS rollout: MSOs look to channel package tiers

    MUMBAI: Multi-system operators (MSOs) have initiated talks with some broadcasters for providing their bouquet of pay channels at special rates in the conditional access system (CAS) regime. This would enable cable networks to tier various channel packages for consumers.

    The Telecom regulatory Authority of India (Trai) has fixed the a la carte pricing of pay chanels at a maximum of Rs 5 under CAS. The MSOs want broadcasters to price their bouquets below the average of Rs 5 per channel.

    “We are in a very nascent stage of discussions. Some of the broadcasters have moved the courts and are, in fact, waiting for the verdict. We expect to have more definite proposals within a fortnight,” says Hathway Cable & Datacom managing director and CEO K Jayaraman.

    The MSOs will tier different packages to make it price friendly for consumers. “We will be working out packages based on a combination of genres. This will be in addition to the a la carte pricing which, with a cap at Rs 5, is expected to be quite popular,” says Jayaraman.

    Adds IndusInd Media and Communications Ltd (IMCL) director-in charge Ravi Mansukhani: “Once the broadcasters give us their bouquet pricing, we can work out our own bundling which will offer choice to consumers and make it more attractive than the a la carte pricing.”

    The stumbling block to such negotiations at this stage, however, is a number of court cases filed by broadcasters questioning the Rs 5 cap fixed by the sector regulator. Broadcasters feel the regulated pricing is unfair and will hurt their subscription incomes.

    Hathway and IMCL, meanwhile, will soon kick-off CAS awareness campaigns jointly. The estimated spend: Rs 10 million. Hathway plans to spend an additional Rs 5 million in the first phase, says Jayaraman. Hathway has already started marketing its digital drive in bus shelters, radio and other mass media platforms.

    “We are also planning to invest independently through various marketing initiatives. This will be in addition to the joint campaigns where the spend could be Rs 10 million,” says Mansukhani.

    The MSOs have started offering digital set-top boxes (STBs) and cable at an advance deposit of Rs 250 in the CAS notified regions of south Mumbai, Delhi and Kolkata. Consumers will have to pay a rent of Rs 45 per month only after 1 January, the scheduled date for implementation of CAS. If they are not happy, they can discontinue the service.

    “We have started seeding 1,000 STBs a day since 1 November. We expect this to further pick up,” says Jayaraman. Hathway is aggressively pushing for digital cable in both Mumbai and Delhi.

    IMCL has been slow to push the STBs to its consumers. “Once the marketing campaign gathers momentum next week, we hope to seed 1,000 STBs a day. The offtake should further speed up as we go forward,” says Mansukhani.

  • CAS pricing case: TDSAT sets 12 December for next hearing

    CAS pricing case: TDSAT sets 12 December for next hearing

    MUMBAI:The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) has fixed 12 December as the date for next hearing in the case filed by broadcasters against the Rs 5 tariff for pay channels set by sector regulator Trai (Telecom Regulatory Authority of India) in a CAS (conditional access system) regime.

    The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) has fixed 12 December as the date for next hearing in the case filed by broadcasters against the Rs 5 tariff for pay channels set by sector regulator Trai (Telecom Regulatory Authority of India) in a CAS (conditional access system) regime.

    The pay broadcasters have challenged the two Trai notifications dated 24 August (on carriage fee) and 31 August (channel pricing). They are also contesting the revenue sharing model designed for industry stakeholders by Trai. The sector regulator had specified in the notification that the revenue generated from pay channels leaves the broadcaster with 45 per cent, while the MSOs stays on with 30 per cent and the cable operators get 25 per cent.

    Earlier this year, a division bench of the Delhi High Court had passed an order directing the implementation of CAS with effect from 31 December in the south zones of the three metros – Mumbai, Delhi and Kolkata.