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Tag: digitisation

  • DAS Phase III fourth updated urban areas list shows changes in W. Bengal

    DAS Phase III fourth updated urban areas list shows changes in W. Bengal

    NEW DELHI: The Government, which had last month issued an update list of urban areas to be covered during Phase III of the Digital Addressable System (DAS), today issued a fourth list relating to West Bengal.
     
    The list issued on 3 November had related to the urban areas to be covered in seven states and one union territory.
     
    That was in addition to the 16 states for which upgradation had been announced on 16 October.
     
    Around 250 towns have been deleted from the West Bengal list while DAS has been shifted to around 10 other towns in 20 districts in West Bengal. This leaves a total of 1,055,469 TV households to be covered by midnight tonight.
     
    The third updated list had referred to changes in Andhra Pradesh, Chhattisgarh, Jammu & Kashmir, Kerala, Madhya Pradesh, Manipur and Telengana, and the Union Territory of Daman & Diu.
     
    Earlier in October, the states and UTs where changes were made are as follows: Arunachal Pradesh, Assam, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Mizoram, Nagaland, Odisha, Rajasthan, Punjab, Tripura, Uttarakahd, Uttar Pradesh, Andaman and Nicobar,and Puducherry.
     
    The updated list with regard to these states and UTs also indicates areas that have been deleted and those which have been added, apart from the number of television households to be covered in each case.
     
    The changes have been made on the basis of the list of Urban local Bodies in West Bengal received from the Joint Secretary, Municipal Affairs Department, West Bengal according to an e-mail of 18 December. 
     
    It has been clarified that the list does not contain areas covered in the first two phases.
     
    The list of areas to be covered in Phase III was issued on 30 April this year.
  • Final Task Force meet for DAS Phase III; Govt & TRAI deny any chaos

    Final Task Force meet for DAS Phase III; Govt & TRAI deny any chaos

    NEW DELHI / MUMBAI: The last sunset of 2015 on 31 December will not only end this calendar year but will also mark the sundown on the era of analog signals in Phase III areas of Digital Addressable System (DAS) in India.

     

    Millions of television households are set to be digitised taking the country one step closer to the ‘Digital India’ vision. The government is adamant that analogue signals will be cut off from 1 January, 2016 for areas covered under the DAS Phase III. In the light of the deadline being merely two days away now, a final Task Force meeting has been convened for tomorrow (30 December, 2015) to take stock of the situation.

     

    A senior executive in cable fraternity feels that the cut-off of signals can lead to a massive law and order situation on ground and the government should be held responsible for any mishap that takes place. He says, “It’s just a day left and still they don’t know what will happen after that. The analog signals will be cut off; it’s a fair call but what if consumers go and vandalise the cable operator? He will have to undergo serious financial damage. Moreover, that can even trigger a riot. We are dealing with vulnerable areas and the government needs to understand that.”

     

    Another senior level executive at a national multi system operator (MSO) opines, “Imagine a scenario when 5000 people are watching New Year special programming on various channels and in the midst of it, the signals are cut off! Does digitisation mean harassing the consumer? What have the authorities done to ensure a smooth transition? When a huge road is made, government gives exemption right. We pay toll and then later the amount is taken care of. Why could they not do something similar with cable if they really wanted the digitisation process to be smooth? I fail to understand why we had to do it in phases. We could have done it state-wise too. Overall, I think there is no option but to wait and watch.”

     

    A source from the Information and Broadcasting Ministry, who did not wish to be named told Indiantelevision.com that both the Telecom Regulatory Authority of India (TRAI) and some High Courts had already said that interconnect agreements (ICA) have to be in place.

     

    The source further added that enough time had been given to the stakeholders and TRAI had held several meetings with different segments of the stakeholders to iron out differences wherever they existed.

     

    Reacting to the judgement of the Bombay High Court that stop-gap agreements should be permitted till TRAI issues a format of the kind of ICAs that should be signed, sources said that both the Ministry and TRAI were already working on a formal format for the ICA. The Ministry source said that it would accept the directive of the Bombay High Court since it worked in favour of digitisation.

     

    Speaking to this website, a TRAI spokesperson said that the regulator had already floated a Consultation Paper for a model ICA for which the last date for comments is 31 December, 2015 and for counter-comments is 7 January, 2016. In view of the urgency, he expected TRAI to come out with its model ICA within a week of receiving all comments.

     

    When asked about the shortage of set top boxes (STBs) in many areas, the Ministry source said that the actual position would become clear after the Task Force meeting.

     

    However, reports so far indicate that there was no shortage of STBs though there had been some areas, which could not receive them in time.

     

    The TRAI official added that MSOs had assured the regulator that there was no shortage of STBs. While there were reports stating that some local cable operators had not received STBs, the spokesperson said that STBs were now available in the open market and any viewer could obtain these readily.

     

    Denying reports of any chaos in the event of the switch-off of the analogue signals, the Ministry source said that viewers all over the country had been made aware of the deadline through intensive ad campaigns run on television and social media and therefore problems would be minimal with regard to the deadline.

     

    The TRAI source added that with other options like HITS and DTH including Freedish available, the regulator did not foresee any chaos. In fact, several mobile apps were already offering TV channels live.

     

    The source conceded that many viewers had taken the open route of subscribing to a private dish operator but said this was obvious in any competitive economy.

  • “Our strategy is clear, we are ready to associate with everybody but we won’t compromise with our transparency:” Tony D’Silva

    “Our strategy is clear, we are ready to associate with everybody but we won’t compromise with our transparency:” Tony D’Silva

    For Hinduja’s Headend In The Sky (HITS) platform – NXT Digital, which was launched earlier this year, the journey so far has been about tussling it out. From procuring the requisite license from the Ministry of Information & Broadcasting (MIB) to getting broadcasters on board, for NXT Digital, it was no mean feat. Focusing on phase III and IV areas of Digital Addressable System (DAS), the venture has made it very clear that they mean business and are here for the long haul.

    Led by Grant Investrade managing director Tony D’Silva, the venture is investing heavily in order to achieve the goals that have been set. With an aim to spread its network pan India, NXT Digital has deployed teams on ground to reach out to operators. Speaking to Indiantelevision.com’s Anirban Roy Choudhury, D’Silva speaks about the roadmap ahead for NXT Digital, the recent deal with Zee Entertainment Enterprises as well as India’s cable digitisation drive. D’silva makes no bones about the fact that the company is ready to associate with anybody but will not compromise with its transparency.

    Read on:

    How did the industry respond to the launch of NXT Digital?

    The launch of NXT Digital has been very well received by most markets across the country. Initially people were skeptical about what this system was all about. There was a lot of negative publicity in the market spread by people with various vested interests saying that we would face the same problems that Jain HITS faced. I think we have been able to overcome that gradually. And now we believe that we are a platform to stay. We have made substantial investment and have the financial support to invest more.

    What do you think has been the biggest achievement so far for NXT Digital?

    The most important achievement is the fact that we have successfully signed all the broadcasters. The deal with broadcasters is for both active and passive services (with exception of Zee), which is a greater achievement. Now I think we have started to move faster. Initially the progress was a little slow because there was a lot of confusion in the market as what will be the last date of DAS Phase III. However, now that there is clarity on the final date, the demand has seen a substantial growth in terms of COPE mini headend systems and set top boxes (STBs).

    When you speak about demand, is there any particular region where you are witnessing the demand or is it pan India?

    It is indeed pan India. In fact, we are observing a huge demand in phase I and II areas. But considering our decision to not disturb the existing ecosystem, we have decided to focus on phase III and IV markets only as of now. That said, we will review the model whenever needed.

    How robust is your infrastructure to meet the growing demand?

    We built our infrastructure for a particular demand but we have gone well beyond that demand and hence we have to now re-build our infrastructure. And that’s exactly what we will do to meet the demand.

    Infrastructure will certainly not be a problem as far as NXT Digital is concerned. We are evaluating various options when it comes to STBs. DAS Phase IV will have a different affording power as compared to phase III and keeping the diversity in mind, we plan to offer a variety of options when it comes to STBs. By next year we will add one or two more transponders too.

    How do you plan to ensure cordial reach out to the operators?

    We reach out to the operators through various print, digital mediums, live roadshows etc. Moreover we have an on-ground team, which interacts with the operators. I think the proof of the pudding is in the eating. Once cable operators as well as the market have seen our services, there will automatically be a level of satisfaction and confidence and then they will be our ambassadors.

    What’s your take on pricing when it comes to DAS Phase III and IV?

    The content pricing is a function of broadcasters. We follow a business model where we don’t make any money from content. We don’t want to make money from content. The lower the broadcaster gives us, the lower we offer to our operators. Broadcasters unfortunately don’t see a difference between Phase III and Phase IV even though we have been repeatedly appealing to them because there is a clear difference in Average Revenue Per User (ARPU) in the two regions. I think it’s the function of authority overseeing the digitisation process to ensure the fact that the price quoted is fair for the entire ecosystem.

    Is there a clear enough revenue model?

    I think there should be a differentiation in the markets, or another way to look at it is to see what you can afford and pay for it. But I don’t know if the second one is a right option at this stage. And the reason I say at this stage is because the consumer is used to a kind of model and suddenly you cannot give him another rationale and logic. The transition needs to happen after following a logical approach and that is something that I firmly believe in. You cannot bring in a change by being harsh on the end consumers. 

    How many operators has NXT Digital signed with so far? Are you happy with the number?

    We are very close to touching the 500 mark and I am very happy with the number. The number will go up substantially as we come closer and closer to the D-Day. There are a huge number of people who are still trying to figure out the best way forward. The main reason why operators held back was because they were insecure about us not having all the content. After getting Zee on board that problem has been addressed and now we will certainly see the demand going up.

    The other problem that we faced in the initial stages was our broadcaster friends campaigning against us. They went on to many operators and mis-informed them saying NXT Digital will also be on the same track as Jain HITS as we will not provide them the content. I think we have proved that these were just rumours and hence they don’t count anymore.

    What’s your take on the entire digitisation process?

    Not all operators are equipped with higher education and hence they do not understand the actual meaning of digitisation. Digitisation does not mean putting a digital head-end and STBs but it is also about managing the backend, packaging and bundling. On the other hand, there are a lot of smart, intelligent Chinese vendors all around laying the trap and there are a good number of operators falling in that trap maybe because of the government pressure or lack of understanding.

    The other thing I have been telling the government is that when you look at regulation per se, the entire onus of implementing digitisation lies on the MSO. However, we are forgetting that a very important part of the process is the local cable operator (LCO), who is delivering the signal to the end consumer. Therefore billing, receipt collection, ensuring quality, consciousness and other on-ground responsibilities should remain with the LCO.

    The government needs to understand that unlike many other countries, India is not a homogenous market. On a single street you will find slums and multi-storeyed apartments, which are both are consuming content. The LCO cannot go with a fixed price because it will be more than some or less than some. Moreover, he will also have to pay service tax on it. The concept of billing needs to be realistic and practical. There are a lot of things that need to be addressed if we really want to digitise the country. 

    You are also providing local channel facility, which is something that lacks on DTH. Who takes the responsibility of the content put on those channels?

    We have a mechanism through which operators can have as many as eight – sixteen local channels. The benefit is that they are all encrypted and hence piracy is taken care of. We are clear with the operator that whatever content is put up, should follow the Cable Act. If the operator airs pirated content or breaches the law, the broadcasters can inform us and we will switch off signals. We have the power to switch off, which other MSOs don’t and that’s another advantage that we have. We have to understand one thing that the COPE belongs solely to the operator and therefore the liability of whatever is inserted through that COPE is on him. 

    Can DD Freedish capitalise on the on-ground chaos? If there is a blackout, people may just move to DD Freedish?

    DD Freedish is also like any other DTH platform. I don’t think it meets consumer requirements. The consumer knows what he wants to watch. Setting up a DD Freedish and buying an STB is similar investment. It’s just that there is no subscription fee attached to DD Freedish but it has its limitations when it comes to number of channels. And not only channels, the exposure that we offer is far beyond, be it international with global channels, local channels or value added services. So we are far ahead of a platform like DD Freedish and we are not bothered by it.

    You had all major broadcasters on board except Zee. How was your experience inking the deal with Zee?

    A deal that took four months to be signed cannot be called a smooth one. We went to the MIB, the Telecom Regulatory Authority of India (TRAI) and then eventually tussled it out at the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). For many years now we have been requesting TRAI to come up with a standard Interconnect Agreement (ICA). There are so many operators across the country who cannot even afford to go to the TDSAT. It’s not an easy process; he has to come to Delhi, hire a lawyer and it needs a lot of financial backup. The deal signing with Zee was a learning experience for me. It was a case of dealing with people who say something and do something totally different. It was a clear case of mis-interpretation of law.

    What is the way forward for NXT Digital?

    Value added services are important to ensure growth and now we are focusing aggressively on that front. I want to make one thing very clear, which is that the Hinduja Group will fight this till the very end. We are not going to be tempered over by anybody in this industry. If there is a genuine problem or concern, we are more than happy to sit and discuss. At the same time, no matter what, we will not be stepped on for nothing. I firmly believe that the whole is always bigger than the individual. If we have all the broadcasters with us and one against, there has to be some vested interest. Our strategy is clear, we are ready to associate with everybody for business or betterment of the industry but we won’t compromise with our transparency. 

  • MSO clearances finally cross 550 with less than six weeks left for completing Phase III of DAS

    MSO clearances finally cross 550 with less than six weeks left for completing Phase III of DAS

    New Delhi: The number of multi system operators has raced to 553 by 24 November from around 470 early this month, as the government races to prepare to meet the deadline of completing the third phase of digital addressable system.

     

    Of these, 230 have got ten-year licences with three provisional licencees getting permanent licences, and a total of 323 (against 246 early this month) getting provisional licences. One temporary licencee was also given permanent licence till 2024 after its area of operation was changed.

     

    Information and Broadcasting Ministry sources said it had still not received any formal communication of the Home Ministry’s decision to do away with security clearances for MSOs, while some had been given provisional licences pending certain formalities relating to shareholders and so on.

     

    According to the list put on the I and B Ministry’s website today, Kal Cables of Chennai and Digi Cable Network Pvt Ltd of Mumbai remain on the cancellation list. Scod 18 Networking Pvt Ltd of Mumbai has also been refused security clearance while SR Cable TV Pvt Ltd of Bangalore has shut down its business.

     

    Two MSOs which had earlier been granted permanent licences were permitted to change their areas of operation.

      

    The new entrants in the permanent licence list include Waltair Entertainment Pvt. Ltd for Phase II in Vishakapatnam; Den Manoranjan Satellite Pvt. Ltd of Pune for Maharashtra; and Seemanchal Digital Network of Purnea for Bihar.  

  • Neo Sports’ Mautik Tolia opens up on the Impact of DAS

    Neo Sports’ Mautik Tolia opens up on the Impact of DAS

    DAS (digital addressable system) is here to stay. Despite the shortcomings, the hiccups in the implementation of the first two phases, the government has announced that it will not extend the deadlines of December 31, 2015 for phase III areas and December 31, 2016 for phase IV, when the entire country is expected to be digitised. After complete switchover, cable TV services will be available only through set top boxes in India.

     
    We, at the Indiantelevision.com are starting a new section – ‘The Impact of DAS’ through which thought leaders, experts from the television ecosystem will share their thoughts, ideas, and say their piece on the subject. We are beginning with the impact of DAS on the sports broadcasting ecosystem. 

     
    Our expert for the section is Neo Sports EVP programming Mautik Tolia.

     

    Excerpts:

     

    How big an impact has phase I and II digitization made when it comes to subscription revenue?

     

    Digitization has been a big step forward not just in terms of revenue but in providing secular access to viewers to more sports events, apart from just cricket. As India moves more and more to a multi-sport fan universe, digitization will continue to play in important role in increasing the popularity of all sports. Combined with the increasing market share of DTH platforms, which in turn enhances the reach of sports networks without whimsical interruptions (which were a constant feature in the analog domain) we at neo sports see other sports climbing to a 40 per cent share of revenue universe in 3 years time.

     

    From sports broadcaster’s point of view are you happy with the two phases of digitization?

     

    Doubtless there have been roll out issues and delays in implementation but on balance digitization has been a positive. It will be some time before more sophistication is achieved in packages and tiers, which will steadily take us to a CPS billing norm. Transparency in billing remains a challenge but we believe that too will be resolved in the next 2-3 years.

     

    Is the sports broadcasting industry in a subscription positive scenario? Or we are still ad dependent?

     

    From a 90:10 ad: subscription ratio 10 years back, the sports broadcast industry has probably moved to a 70:30 maybe even 65:35 ratio. This may even be 60:40 or 55:45 in the case of some networks. Due to significant ad spend on cricket, especially IPL this ratio will inch its way to maybe 50:50 in 3 years for the industry as a whole.

     

    Are sports like Football, Badminton which are hugely popular but have very little room for advertisement profitable assets for broadcasters?

     

    Aside of Cricket, the dominant sports are football, tennis, golf, hockey, badminton and motor sport. Except for Football and Badmnton, others have adequate ad break potential. At Neo Sports we believe that it is more a question of focus, ability and experience when it comes to monetizing sports other than cricket.

     

    With phase III and IV scheduled do you see a substantial inclination in subscription revenue?

     

    We see further momentum in subscription revenues, reach and secular access for all sports in phase 3 and 4.

     

    How can a non cricket sport or a sport with least ad room turn profitable for broadcasters in India?

     

    The profitability conundrum is more a function of irrational acquisition prices and lack of focus on monetizing all sports. We have seen at least one sports broadcaster recently pay over the top for rights that were being jettisoned by another and for which there may well have been no other takers. Ill informed and panic buying has resulted in lack of profitability for some. At Neo Sports we believe that intense discipline is required both with acquisitions as well as in monetizing assets. Wise spending may not make a sports broadcaster no 1 but there are plenty of sports rights constantly available, the universe of sports fans is rapidly expanding, advertisers are increasingly willing to spend on sports other than cricket and affiliate platforms understand that tens of millions of viewers are tuning into other sports – hence there is room for multiple sports networks and increasing opportunity for revenue and viewership expansion.

  • MIB sets up toll free call centre for seamless transition of DAS

    MIB sets up toll free call centre for seamless transition of DAS

    MUMBAI: The Ministry of Information and Broadcasting (MIB) has set up a Toll Free Telephone Number 1-800-180-4343 to answer queries of stakeholders, including consumers, for seamless transition to digitisation. To begin with the queries can be answered in 8 Indian languages – Hindi, English, Bangla, Gujarati, Marathi, Telugu,Tamil & Kannada. 
     

    After the completion of first two phases of cable TV digitisation, which covered 4 metros (Delhi, Mumbai, Kolkata and Chennai) and 38 cities having populations of more than 10 lakh each, Phase III of digitisation is underway. It would cover all the remaining urban areas in the country and is to be completed by 31 Dec 2015. 

    The MIB has been facilitating the smooth switchover to digitisation. In this connection a list of urban areas to be covered in Phase III has been finalised in consultation with the state/Union Territory Governments. A Task Force has been constituted which is meeting every month to take stock of the progress. State and Union Territory Governments have nominated state level and district level nodal officers for coordination work. 10 workshops have been conducted by the Ministry of I&B at regional level to sensitise the nominated nodal officers about their role in the digitisation process.

     

    Twelve regional units have also been set up by the MIB for effective coordination. Secretary (I&B) has requested all the Chief Secretaries to set up monitoring committees to review preparedness for digitisation. Broadcasters as well as Multi System Operators (MSOs) have launched public awareness campaign. MIS software has been made operational for collection of seeding status of Set Top Boxes (STBs) online from registered MSOs, Direct To Home (DTH) and Headend In the Sky (HITS) operators. 

  • Impact of DAS on Sports Ecosystem: Rajesh Sethi

    Impact of DAS on Sports Ecosystem: Rajesh Sethi

    DAS  (digital addressable system) is here to stay. Despite the shortcomings, the hiccups in the implementation of the first two phases, the government has announced that it will not extend the deadlines of December 31, 2015 for phase III areas and December 31, 2016 for phase IV, when the entire country is expected to be digitised. After complete switchover, cable TV services will be available only through set top boxes in India.
     
    We, at the Indiantelevision.com are starting a new section – ‘The Impact of DAS’ through which thought leaders, experts from the television ecosystem will share their thoughts, ideas, and say their piece on the subject. We are beginning with the impact of DAS on the sports broadcasting ecosystem. 
     
    Our expert for the section is Ten Sports Network CEO Rajesh Sethi.

     

    Excerpts: 

     

    How big an impact has phase I and II digitization made when it comes to subscription revenue?

     

    Phase I and phase II digitization has made a positive impact as far as the subscription revenue is concerned for the industry and given the trend we expect increase in the revenue once phase III and IV is completed. Ten Sports has also experienced the upside of subscription revenue which can be seen from our increased ARPU.  The addressability has improved but a lot still needs to be done. We believe that as the digitalization matures & packaging is implemented on ground by the operators, we will be able to achieve complete benefits of digitalization.
     

    From sports broadcaster’s point of view are you happy with the two phases of digitization?
     
    Although the implementation of two phases of digitization had been slow as compared to expectations, the completion of the two phases has facilitated increased subscription revenues and more accountability in the industry. From a sports broadcaster’s perspective, it will provide Ten Sports an opportunity to introduce new products based on the type and preference of consumers and provide enhancements like multi camera action, on demand services etc. We as asports broadcaster are keen to enhance the consumer experience and are interested in working with operators to fully reap the benefits of digitalization.

     

    Is the sports broadcasting industry in a subscription positive scenario? Or we are still ad dependent?

     

    The sports broadcasting industry in India is still evolving and ad revenue contributes significant part of revenues and will continue to remain the same in foreseeable future for main streamsports content. However, as digitization is still not complete, there is a high potential of increased subscription revenue and lesser dependency on ad revenues. We expect the niche sports offering to move towards subscription driven revenue model. As a sports broadcaster, we believe that the industry is moving in the right direction and once phase III and IV is complete there will be a possibility for this industry to be in a subscription positive scenario.

     

    Are sports like Football, Badminton which are hugely popular but has very little room for advertisement profitable assets for broadcaster?
     

     

    There has been increased interest from consumers for non-cricket sports in India in the last few years. Football and Badminton have gained traction in an industry which is preliminary dominated by cricket. It’s a step forward in right direction and we have seen advertisement revenue picking up for non-cricket content, the most recent example being Kabaddi. With regards to football and badminton being a profitable asset for a broadcaster, profitability is a function of revenue potential and content cost. Though the revenue potential and content cost presently is limited, it is expected to rapidly grow for these products. This makes it a good opportunity for a broadcaster to obtain future profitability on these content.
     
    With phase III and IV scheduled do you see a substantial inclination in subscription revenue?
     

     

    Phase III and IV is all about getting to remote areas of India. It provides an opportunity for thesports broadcasters to bring local content which connects & relates to the audiences residing in these towns. We see positive growth in subscription revenue as the number of HH’s in these towns provide a growth opportunity from the existing very low ARPU levels.
     

     

    How can a non cricket sport or a sport with least ad room turn profitable for broadcasters?

     

    The subscription revenue and ad revenue are the two key revenue source for a sports broadcaster. However, profitability for a content not only depends on revenue but also on the cost. The sportswhich has least room for ad revenues would depend on increased subscription revenue which we expect to increase once phase III and IV digitization is completed. At Ten Sports, as part of innovation drive, our team analyzes the potential of content across various genres which might not be currently popular in India and then builds it up for the consumers. We see increased traction for non-cricket content in recent years which translates into higher revenue potential and eventually a profitable content.

     

  • Impact of DAS on Sports Ecosystem

    Impact of DAS on Sports Ecosystem

    DAS  (digital addressable system) is here to stay. Despite the shortcomings, the hiccups in the implementation of the first two phases, the government has announced that it will not extend the deadlines of December 31, 2015 for phase III areas and December 31, 2016 for phase IV, when the entire country is expected to be digitised. After complete switchover, cable TV services will be available only through set top boxes in India.

     

    We, at the Indiantelevision.com are starting a new section – ‘The Impact of DAS’ through which thought leaders, experts from the television ecosystem will share their thoughts, ideas, and say their piece on the subject. We are beginning with the impact of DAS on the sports broadcasting ecosystem. 

     

    Our first expert for the section is Sony Six and Sony Kix Business Head Prasana Krishnan. Sony Six and Sony Kix are a part of the Sony Pictures Network (earlier known as Multi Screen Media Network.) 

     

    Excerpts:

     

    How big an impact has phase I and II digitisation made when it comes to subscription revenues?

     

     

    Digitisation is a very significant and essential step for unlocking the true subscription potential.  It is designed to benefit all stakeholders including content owners, broadcasters, distributors and consumers as it brings addressability and transparency into the system.  We are still in early stages of this and full addressability is still some time away but the overall impact on subscription revenues has been very positive. 

     

    From a sports broadcaster’s point of view are you happy with the two phases of digitisation?

     

     

    The first two phases of digitisation have primarily focused toward catering to the change in the 4 metro’s and households in cities with over 1 million in population.  The experience and progress has been quite positive as the consumer in India is today getting unprecedented access to sports content.  The analog regime had some capacity limitations which often meant prioritisation of sports and ignoring niche interests.  Digitisation has been a key factor behind the growth of non-cricket sports viewership in the country as it has enabled access to such content on a consistent basis.  While the overall progress in these markets is very positive, the full potential is still to be unlocked and a lot still remains to be done in terms of full addressability, channel packages, etc.   

     

    Is the sports broadcasting industry in a subscription positive scenario? Or we are still ad dependent?

     

    Globally, sports broadcasting is primarily driven by subscription and in some cases, it can be even as high as 90 per cent of total revenues.  In India, dependence on ad spends is still very high and I think it will continue to be so in the foreseeable future.  But the share of subscription revenues has seen a good increase in recent years with the advent of DTH sector and digitisation and will hopefully continue to grow. 

     

    Are sports like Football, Badminton which are hugely popular but attract limited advertising profitable assets for a sports broadcaster?

     

    With spur in economic developments and maturing viewership preferences, sports viewership in the country has moved from a single sport to a multi-sport consumption. Compelling alternate sports have now taken a step ahead, and we are seeing their popularity permeate down amongst the Indian audiences leading to increased overall demand for alternate sports.  While certain sports like cricket are extremely advertiser friendly due to their format, others like football, badminton, etc have higher limitations in terms of advertising.  But these sports can be profitable especially with the advent of digitisation and the improving subscription market.

     

    With phase III and IV scheduled do you see a substantial upward growth in subscription revenues?

     

     Digitisation is clearly beneficial for sports broadcasting and some of the benefits are already visible from the first two phases.  Phase III and phase IV will help in continuing this growth and would be clearly positive for the industry.

     

    How can a non-cricket sport or a sport with limited ad room turn profitable for broadcasters?

     

    We are currently in a very exciting decade for sports consumption with viewership patterns and preferences showing a particular change over the previous years.  Non-cricket sports have been at the forefront of growth in the country and fans are increasingly connecting with these sports.  Eventually, profitability is clearly a factor dependent on viewer acceptance besides costs.  It is not possible to have a generic answer that applies for all non-cricket sports as it would be a case specific.  If a particular sport has found strong viewer acceptance, profitability will definitely follow irrespective of advertising inventory constraints.

  • Hinduja Ventures’ NXT Digital receives operating licence for HITS

    Hinduja Ventures’ NXT Digital receives operating licence for HITS

    MUMBAI: Grant Investrade Limited (GIL), a subsidiary of Hinduja Ventures, has crossed the final hurdle to start operations of NXT Digital – its headend in the sky (HITS) service. The company has received Wireless Operating License (WOL) from the Wireless Planning & Coordination Wing of the Ministry of Information & Communications Technology.

     

    The WOL is the final regulatory step before making HITS operational, in accordance with the terms and conditions stipulated in the Letter of Intent (LOI) issued by the Ministry of Information & Broadcasting to GIL last year.

     

    “We are delighted to confirm receipt of the WOL for us to commence operationalisation of the HITS service in India. The launch of NXT Digital is in line with the Government’s objective of making India ‘digital’ and we’re proud to be a part of this national initiative,” said GIL chairman AK Das.

     

    “NXT Digital has received an overwhelming response from the distribution fraternity in Phase III & IV markets in India. Our broadcast centre and our backend systems are fully operational; our broadcaster relationships have been formalised, we’ve already rolled out our COPE mini-headend systems and STBs and we’re ready to go ‘live’ shortly,” added GIL managing director Tony D’Silva.

     

    It may be recalled that the government recently ruled out the extension of the DAS phase III deadline of 31 December, 2015. In view of this, NXT Digital is being viewed as the enabler for the cable fraternity go digital as per government mandated standards and within the deadline.

     

     

  • Videocon d2h eyes 35-40% EBITDA growth at Rs 8.6 billion in FY-2016

    Videocon d2h eyes 35-40% EBITDA growth at Rs 8.6 billion in FY-2016

    MUMBAI: Driven by strong subscriber growth momentum and improving average revenue per user (ARPU), Indian direct-to-home (DTH) company Videocon d2h is expecting EBITDA to be in the range of Rs 8.2 – 8.6 billion in FY-2016, which translates to approximately 35-40 per cent growth over EBITDA in the fiscal year ended 31 March, 2015.

     

    As was earlier reported by Indiantelevision.com, Videocon d2h is also planning to increase its monthly subscription rates in the range of Rs 12 – 23 per month.

     

    The company maintains its current first half of the fiscal year ending 31 March, 2016 guidance of 25-30 per cent period on period growth of EBITDA, and is guiding towards 40-45 per cent period on period growth in the second half of the fiscal year ending 31 March, 2016.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We are pleased to provide strong EBITDA growth guidance for fiscal year 2016. This is driven by strong subscriber growth momentum, improving ARPU and further benefit of operating leverage. We remain excited about our long term subscriber growth prospects as a result of the government mandated move to digitalisation. We have positioned ourselves to take advantage of the 100 million subscriber homes opportunity for the industry over the next four to five years.”