Tag: digitisation

  • DAS: A mirage that moves farther, the closer one gets to it

    DAS: A mirage that moves farther, the closer one gets to it

    New Delhi/Mumbai: When developed countries like the United States and the United Kingdom decided to adopt digital addressable systems (DAS), they knew there would be major road blocks.

    Not only did these countries decide to complete digitisation by 2017-end, but admitted that both analogue and DAS would have to co-exist for some time until all viewers realised the advantages of digitisation.

    In its effort to beat these bigger countries, India decided it would set out a deadline wherein analogue and DAS would not co-exist.

    The result was a mirage that was shown to most Indians and – as it happens with a mirage – the realisation became more distant as the deadlines approached.

    It was exactly a decade earlier (14 September, 2005) that the Telecom Regulatory Authority of India (TRAI) presented its first report on Digitisation of Cable Television. Five years later, in August 2010 it gave recommendations relating to DAS.

    However, it was only in April 2011 that the Ministry of Information and Broadcasting (MIB) finalised the schedule for digitisation. According to that decision, which was notified in November that year, the entire country was to have adapted to digital addressable cable systems by December 2014. The first phase covering the metros was to be completed by 31 March, 2012, Phase II covering cities with a population more than one million by 31 March, 2013, Phase III covering all urban areas (Municipal Corporations/Municipalities) by 30 September, 2014 and Phase IV covering the rest of India by 31 December, 2014.

    Since then, the deadlines have been pushed at least twice. The first was when Phase I was delayed by six months, whereas the second was when the current Government decided that the Phase III deadline would be extended to December 2015 and Phase IV to December 2016.

    And clearly at a time like this, it would be apt to quote these popular lines from Robert Frost’s poem made famous by the country’s first Prime Minister Jawaharlal Nehru – ‘The woods are lovely, dark, and deep, But I have promises to keep, And miles to go before I sleep.’

    Indeed there are miles to go even as Phase I in the metros claimed to be major success. But it is well known that DAS continued to be barred by a stay order of the Madras High Court, and there are large pockets in the other three metros (Mumbai, Delhi & Kolkata) where analogue TV continues to thrive. 

    Phase II also suffered in that many of the cities are still not digitised and this is evidenced by the large number of cases pending before the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT).

    Keeping in mind ground level realities, the government initially contemplated merging the final two phases, but realised that this might lead to major embarrassment. Therefore, it was decided by the Narendra Modi led government to implement Phase III by the end of 2015 and the rest of the country in Phase IV by the end of 2016. The third phase includes 38.79 million television households spread across 630 districts and 7,709 urban areas.

    In a recent conversation with Indiantelevision.com, MIB additional secretary J S Mathur, who heads the Task Force for the final two phases, ruled out any possibility of extension of deadline. He said, “There is no reason for any extension of dates for completion of phase III. Work is proceeding as per schedule.”  

    However as the saying goes, there are many a slips between the cup and the lip. So even as the first deadline is barely four months away, there are many hurdles in the way that need to be crossed.

    Apart from several legal issues, the last Task Force itself laid bare many of these hurdles.

    SHORTAGE OF MSOs

    Although the Home Ministry has in principle decided to do away with security clearance for multi system operators (MSOs), the fact is that India still has not even touched the figure of 375 in the number of MSOs. As per the last report dated 20 August,2015, while 226 MSOs have 10-year licences, 146 have only provisional licences. It does not need a bright mind to figure out that the number stands out as a joke when one considers the number of television households in the country.

    SET TOP BOXES

    The country still does not have adequate STBs and it is claimed by many local cable operators (LCOs) that the STBs being supplied are those that are meant for direct-to-home (DTH) transmission and not cable and therefore create problems. The other option is to take cheap China-made STBs.

    Despite the Make in India campaign, very few manufacturers have come forward with proposals for reliable STBs. 

    The Consumer Electronics and Appliances Manufacturers Association (CEAMA) complained at the Task Force meeting that no major orders were being placed with it by MSOs. However, a representative of the CEAMA said, “There is little time to place orders if they want the STBs, which are required to be delivered before the cut-off date.”

    The FICCI annual survey of manufacturing shows that there has actually been a decline in the manufacture of electronic goods, despite the Make in India impetus. The manufacture of electronics – presuming these include broadcast equipment and STBs – and electrical came down from 75 per cent in the last quarter of 2013-14 to 70 per cent in the same period of 2014-15.

    LACK OF AWARENESS

    Clearly, this is a grey area, since many people in the country are not aware of the advantages of DAS. The last Task Force meeting stressed on the need to push up awareness through advertisements, workshops, and interactive sessions. There was even mention of a Chetna Yatra.  

    There is lack of communication even between the regulator TRAI and the stakeholders. A Task Force member from Assam said, “The regulatory bodies need to speed up their action. TRAI is supposed to launch its regional operations. There is no clear idea when that will happen. The system here in Assam is not aware of various rules and regulations and the operators do not have the affording power to take the legal battle to Delhi so they often succumb to injustice.”   

    INTER-CONNECT AGREEMENTS

    TRAI had recently asked all broadcasters and MSOs to make the Authority aware of any problems they were facing. However! there were very few complaints, because in most cases the matters are pending before TDSAT or courts of law.

    The interconnect agreement between the stakeholders of the ecosystem is pending even in DAS phase I and phase II areas. “People are not ready to spend in head-ends as there is no clear revenue model. There are distributors who have their favorite MSOs and there is a discrimination of revenue flow on the basis of that favouritism,” said an LCO. He further added “We want a transparent revenue model, which will only come after signing of the interconnect agreement.”

    DAS TARIFF

    In an order on 28 April subsequently upheld by the Supreme Court, TDSAT told TRAI that it “will be well advised to have a fresh look at the various tariff orders in a holistic manner and come out with a comprehensive tariff order in supersession of all the earlier tariff orders.”

    It had also said, “While doing so, it may consider all the agreements and relevant data available with it. It may consider differentiating between content, which is of a monopolistic nature as against that which is shown by other channels also. It may also consider classifying the content into premium and basic tiers.”  The Tribunal had struck down TRAI’s tariff orders.

    COMMERCIAL TARIFF

    TRAI has already begun a fresh exercise in the light of court orders in trying to determine the difference between commercial and private tariff. Following directions by TDSAT earlier this year that there was need for a fresh look at tariff orders, TRAI had issued a new paper on “Tariff issues related to Commercial Subscribers”. In the paper, TRAI asked commercial subscribers whether there is need to define and differentiate between domestic subscribers and commercial subscribers for provision of TV signals and the basis for such classification.

    PROBLEMS BETWEEN MSO AND DISTRIBUTORS

    There is no clear communication between the two very important stakeholders of the DAS ecosystem – the MSOs and distributors. Recently all Multi Screen Media MD channels were taken off Hathway due to internal issues between the two stakeholders. Additionally, Indusind Media and Communication Limited (IMCL) and India Cast are now going through disruption. IMCL informed its subscribers through a message: “Indiacast group is demanding steep increase in monthly subscription, which is commercially unviable, they are pressurizing us by running OSD on colors. IMCL is planning to take the legal recourse. Regret inconvenience caused to you and appreciate your support. Thanks IMCL team”

    MSO – LMO TUSSLES

    The lack of understanding is more prominent when it comes to the MSO and the last mile operators (LMO). The LMOs claim that they are never given their due. The differences are often taken to the regulatory bodies. In one such case, the Bombay High Court issued directions to TRAI to settle the Interconnect Agreement (ICA) issue between LMOs and MSOs within two weeks even as the MSOs believe that there is not enough transparency when it comes to the revenue models.     

    Progress, it is said, cannot be stopped. Similarly, DAS is bound to come in the country. What remains to be seen is whether in its race to catch up with the developed world, it will succeed in a smooth transition or lead to a mess that probably will linger on in courts of law, corridors of bureaucracy, or the one-upmanship of political parties. 

    digitisation

     

  • Hathway – MSM imbroglio: MSO to not renew deal

    Hathway – MSM imbroglio: MSO to not renew deal

    MUMBAI: In a move that would surprise many, multi system operator (MSO) Hathway Cable and Datacom has decided to not renew the contract with MSM Media Distribution (MSMMD) in DAS phase II areas.

     

    As reported first by Indiantelevision.com, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on 14 August had directed Hathway to pay Rs 14.56 crore towards subscription dues to MSMMD for DAS Phase I till the expiry of the agreement i.e. 31 October, 2015 in three instalments.   

     

    In a statement issued today, Hathway said that it will not renew the contract with MSMMD for DAS phase II. It may be recalled that this contract between the two expired on 31 March, 2015 and was not renewed by Hathway then.

     

    “Dripping ratings and average content cannot be a base for a broadcaster to take distribution platforms for a ride by demanding hefty growth year on year. In fact, it requires major correction in the subscription fees that the broadcaster charges. The concern with Sony Entertainment Television, the flagship channel of Multi Screen Media (MSM), has been witnessed over the last year wherein their content lacks appeal and demand as compared to other leading networks and does not deserve a growth, which was raised by us to the broadcaster. All the other channels in the MSM bouquet are also irrelevant and don’t offer any compelling content,” said a Hathway spokesperson.

     

    Hathway has said that in DAS I markets, where the contract expires on 31 October, 2015, it will offer MSM channels on an a la carte basis to consumers and not as part of any of the packages till the expiry of the contract.

     

    Speaking on the dues that Hathway owes the company, MSMMD executive vice president sales and marketing Makarand Palekar said, “Hathway has a huge outstanding and they haven’t paid us for seven months. MSM as a network is very patient and does not switch off channels on any platform, but Hathway has tested our patience and even if it wants to put the channels on a la carte, it will have to clear the outstanding first, which is close to Rs 15 crore.”

     

    It now remains to be seen how this story between the two parties pans out.

  • Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    BENGALURU: Subhash Chandra led Essel Group’s Siti Cable Network Limited (Siti Cable) reported operating revenue (total income from operations, or TIO) of Rs 228.09 crore in the quarter ended 30 June, 2015 (Q1-2016), which was 9.1 per cent higher than the Rs 209.02 crore in Q1-2015, but was 10.9 per cent lower QoQ than the Rs 256.01 crore in Q4-2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

    (2) All numbers in this report are consolidated unless stated otherwise.

     

    Both television and broadband subscription revenue registered YoY growth, broadband reported 63.6 per cent growth at Rs 9 crore in Q1-2016 as compared to the Rs 5.5 crore in the corresponding year ago quarter and was 13.9 per cent more than the Rs 7.9 crore in the immediate trailing quarter.

     

    Subscription revenue in Q1-2016 at Rs 129 crore was 9.1 per cent higher than the Rs 118.2 crore in Q1-2015, but declined 9.4 per cent as compared to the Rs 142.4 crore in Q4-2015. Activation revenue at Rs 10.9 crore in the current quarter was 25.3 per cent lower than the Rs 14.6 crore in Q1-2015 and was 48.3 per cent lower than the Rs 21.1 crore in Q4-2015. Siti Cable says that effective realisation per subscriber remained flat during the current period.

     

    Siti Cable’s cable universe increased by 200,000 digital subscribers to 107 lakh in Q1-2016 from 105 lakh in Q4-2015. Digital subscriber base increased in the current quarter to 55.8 lakh from 53.8 lakh in Q4-2015. Net broadband additions in the current quarter were 4400 – the count went up to 74,500 from 70,100 in the previous quarter (Q4-2015).

     

    Let us look at the other numbers reported by Siti Cable

     

    Siti Cable reported a higher loss of Rs 37.11 crore in Q1-2016 as compared to the loss of Rs 31.67 crore in Q1-2015 and a loss of Rs 34.13 crore in Q4-2015.

     

    EBIDTA including other income for Q1-2016 increased 5.1 per cent to Rs 38.1 crore as compared to the Rs 36.26 crore in Q1-2015 and was 18.7 per cent more than the Rs 32.11 crore in Q4-2015.

     

    Total Expenditure in Q1-2016 increased 12 per cent to Rs 228.21 crore (100.1 per cent of TIO) as compared to the Rs 203.76 crore (97.5 per cent of TIO) in Q1-2015, but was 18.6 per cent lower than the Rs 280.49 crore (109.6 per cent of TIO) in the previous quarter.

     

    Pay channel costs in the current quarter increased 8.1 per cent to Rs 135.70 crore as compared to the Rs 125.55 crore in Q1-2015 but was 13.6 per cent lower than the Rs 156.98 crore in Q4-2015.

     

    Siti Cable’s Finance costs in Q1-2016 increased 11.6 per cent to Rs 33.90 crore as compared to the Rs 30.37 crore in Q1-2015 and were 9.2 per cent more than the Rs 31.05 crore in Q4-2015.

     

    Other expenses increased 13.9 per cent in the current quarter to Rs 43.32 crore as compared to the Rs 38.05 crore in Q1-2015 but were 40.3 per cent lower than the Rs 72.53 crore in Q4-2015.

     

    “Our commitment to improving operational efficiency and streamlining operations continues, leading to EBITDA growth of 18.7 per cent and Margin expansion by 501 bps QoQ,” said Siti Cable executive director and CEO VD Wadhwa.

     

    “We managed to grow our Broadband revenues by 13.4 per cent QoQ and are on track to expand our Broadband operations in new cities. Delays in content availability held back STB seeding, however we are well poised to expand aggressively this quarter. During the quarter we have further tightened our credit control measures and started taking strict actions against defaulting operators, which shall result into improved credit discipline and saving in operating cost,” added Wadhwa.

  • Den Networks gets Govt nod for increasing FDI to 74%

    Den Networks gets Govt nod for increasing FDI to 74%

    MUMBAI: Multi system operator (MSO) Den Networks has received clearance from the Foreign Investment Promotion Board (FIPB) to increase its foreign investment limit from the existing 49 per cent to 74 per cent.

     

    As was reported by Indiantelevision.com, on 29 July MSO Hathway Cable and Datacom had received the FIPB approval to up its foreign investment to 74 per cent, whereas Den Networks’ proposal had been deferred. Pertinent to note here is that on 14 July there was buzz that the company had received FIBP nod for the same. However, that was not the case and the MSO finally received the nod only today (13 August, 2015).

     

    With this, Den Networks, which is currently building its broadband base and also working towards digitisation in phase III and IV areas, is looking at attracting overseas capital into the company.

     

    The MSO had sought to increase foreign investment limit beyond 49 per cent and up to 74 per cent by FIIs, NRIs, FPIs, and other eligible foreign investors through route of secondary market and / or open market purchase.

     

    Earlier in March this year, the Board of Directors of Den Networks had approved the proposal to increase foreign investment limit.

     

    The decision was subject to shareholder approval (through postal ballot), FIPB nod and adherence to all other statutory requirements.

     

    Currently, FIIs hold 20.27 per cent stake in Den Networks.

  • Siti Cable seeks shareholders’ nod for raising $100 million

    Siti Cable seeks shareholders’ nod for raising $100 million

    MUMBAI: Multi system operator (MSO) Siti Cable is looking at raising up to $100 million through equity shares via public issue, private placement or qualified institutional placement (QIPs) route. The MSO for the same has sought shareholders approval. 

     

    Siti Cable will utilise the funds to meet expenditure to expand its business in phase III and IV of digitisation, ongoing acquisition of MSOs, LCOs and primary points, value added services (VAS), working capital requirements as well as to reduce debts. 

     

    The company sought shareholders’ approval to raise funds through one or more placements of equity shares in domestic and/or one or more international markets whether by way of private placement or otherwise, in one or more tranches, so that the total amount raised shall not exceed rupee equivalent of $100 million.

     

    The members had approved raising of funds of up to $100 million by passing a special resolution through postal ballot in October 2014, against which the MSO has already raised Rs 221.11 crore.  

     

    “Since the validity of the shareholders’ approval as per Regulation 88(1) of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (‘SEBI Regulations’), is 12 months, it is proposed to seek fresh approval of the shareholders in this regard,” the company said.

  • Hinduja’s NXT Digital tots 1 million subscribers in 3 weeks

    Hinduja’s NXT Digital tots 1 million subscribers in 3 weeks

    MUMBAI: In a short span of three weeks, Hinduja Group’s headend in the sky (HITS) venture – NXT Digital has signed up as many as one million analogue TV households in phase III markets.

     

    Grant Investrade Limited managing director Tony D’silva said, “In just over three weeks since NXT Digital was announced, it has already been signed up to reach one million analogue TV households in phase III markets through LMOs and MSOs who have opted for our services.”

     

    Over the last 21 days, the HITS player has reached out to the cable fraternity across several cities. “The fraternity is extremely excited about NXT Digital,” he said. 

     

    LMOs and MSOs, according to D’silva,  see NXT Digital as a partner that will not only help them make the mandated transition from analogue to digital, but remain independent and owners of the networks they have built with sheer dint of hard work over the years.

     

    The roll-out of digital addressable systems (DAS) in phase III and IV markets across 110 million TV households is being seen as the biggest and the most significant step for the media and entertainment industry in India.

     

    A state-of-the-art broadcast facility in Noida has been designed and purpose-built to provide top quality service, which will roll out in end-August this year. While the satellite-based service will have a national footprint, in view of the deadline for DAS rollout, Grant Investrade is concentrating on the phase III and IV markets for its marketing and subscription drive to enable the cable fraternity provide digital services there.

     

    D’silva said, “NXT Digital will empower and enable the distribution fraternity including LMOs and MSOs to offer a world of exciting digital services to their end-subscribers in all the analogue households across markets. Crucially, NXT Digital will not only help the LMOs and MSOs go digital as per government mandated standards and within the set deadlines, but, throughout the process, help them be independent and retain the ownership of their network.”

  • “Any channel that we launch in the future, will be successful in year one:” MK Anand

    “Any channel that we launch in the future, will be successful in year one:” MK Anand

    Heading the broadcasting expertise of a media conglomerate, which has been operating in India since 1838 is certainly a job of immense pressure. But there is someone who has been doing it with élan and that too at a time when every day gives birth to a new trend, every month, a new competitor enters and claims to be different. He is none other than Times Network CEO and MD MK Anand.

     

    Not long back, acknowledging the emergence of digital and new media, Anand spearheaded a staggering move in which the Times Television Network was transformed into Times Network. Despite having an English movie channel championing the ratings week after week, he marked the launch of another channel in the same genre, with a bigger and better philosophy. Under his leadership, various channels of the network secured pole position on numerous occasions in their respective genre. 

     

    Speaking exclusively to Indiantelevision.com’s Anirban Roy Choudhury, Anand shares his vision for the media industry especially the English entertainment industry and the road map ahead for Times Network. 

     

    Excerpts:

     

    Can you give an overview of Times Network’s news and entertainment channels and which segment is priority?

     

    Being in niche broadcasting, I believe all sectors need attention because it’s a highly competitive industry with some strong players. So innovation needs continuous attention. Our leadership position has been good in both English movies and news space. On the other hand, Zoom needed some specific product attention in the first quarter with reference to the re-launch, marketing etc.

     

    What next for the news sector? Property Now is launching soon and you already have Times Now and ET Now. Is there a Hindi news channel foray on the cards?

     

    Not really. I don’t think there is sense in it right now. The portfolio that we already have needs to be adequately and correctly monetized. I think there is headroom for both in subscription as well as ad sales, which we have seen in the past six quarters or so. We have been able to continuously move the needle on that and until we exhaust that, I don’t think there is sense in stretching and going into a different language all together.

     

    As of now, we are leaders and I feel we will be able to sustain this leadership in the top end category of the broadcast audience. There is a lot to be done there before we move into regional news etc.

     

    The network already had a English movie channel in Movies Now, what was the reason behind launching MN+? Was it to attract advertisers?

     

    I don’t think it is right to launch products for consumers because you have an advertising business opportunity. You launch products because you have consumer demand. So, the launch of Movies Now and now MN+ is to acknowledge the fact that with DAS Phase I and II and now as we go to Phase III and IV, the potential to launch more and more niche channels and to reach out to specific viewers is better and cheaper than it was with analog.

     

    Niche is the way to go. Niche is to acknowledge that specific groups in a large population and vast universe have different tastes. Movies Now is more descriptive as it caters to the whole English viewership but within that there is romance, action and slow movies sector. When you acknowledge the specific niches, you can come up with products like MN+. These channels come up because of niche recognition not because of advertising opportunities.

     

    What has been advertisers’ reaction so far to MN+?

     

    We are delighted with advertisers’ reaction. It is one of the channels, which has almost reached a maturity level in the shortest period of time.

     

    Speaking of the English entertainment genre as a whole, a few international channels have found it difficult to find a foothold in India. On the other hand, we have Colors Infinity and MN+ launching in the wake of the HD boom. What do you think is the need of the hour when it comes to English entertainment in India?

     

    The HD market is definitely growing. It is the natural progression of television viewing just like black and white went to colour, terrestrial went to cable and satellite. Similarly, HD technology is getting diffused and being adopted.

     

    The top of the pyramid is obviously the best place for advertisers to be, whether it is in print or television and therefore the returns on HD from an advertiser’s point of view will be much more than the other areas. HD is the future of all broadcasting. In fact, soon there’ll be someone launching a 4K channel and then 4K will be the future. So technological advancement per se will be the future of all broadcasting.

     

    English entertainment was mainly targeted at the metros at one point of time. Do you see the target group growing now given the fact that we are seeing growth everywhere?

     

    All this is happening because of digitisation. More channels per cable allows for better penetration. Secondly, in the past when TAM in its panel change introduced LC1, there was a rush to reach those markets.

     

    I think advertising optimized distribution and the way niche channels or networks distributed in the past is now gradually changing. One of the reasons why the base is expanding is because of digitization and the possibility that subscription revenues will eventually start flowing from consumers to cable operators in a more transparent manner and through MSOs and DTH operators to broadcasters. 

     

    Broadcasters know that in the next two to five years, subscription revenue will be a lot more transparent. From that point of view, it is a bet that we take and go to those markets.

     

    OTT player HOOQ armed with English entertainment content has entered the Indian market. With Netflix speculated to launch in India next year, do you think OTT services are a threat to traditional television model in a country like India?

     

    There will always be a huge base of Indian consumers who will be consuming English news, English entertainment, English GEC content. It could be through Netflix or it could be through Movies Now or MN+. The fact of the matter is that consumption is not going to go down.

     

    So if you’re asking me whether broadcasters should now stop investing in content because Netflix is coming in; I don’t think so.

     

    Just because a YouTube exists, does it mean that other apps are not going to survive or will get lost? These are all businesses, which have been built over the last ten years. You never know what’s going to happen in the next ten years. A Netflix equivalent or a bigger player may be coming out of India in the next ten years. However, that will happen only when Indian entrepreneurs – whether it is broadcasters or otherwise – play in that market with their own hands. So we won’t fade away because some competitor is coming into play.

     

    Do you think the time is right for India to create original English entertainment content? What is the scope for such content?

     

    That has already started with the infotainment segment whether it is travel or lifestyle type of content. There is a lot of stuff, which is made for India and can also travel across. However, creating entertainment content for Indian production companies will take some time and even if it happens, those will have wings to fly only when they are produced for the global market and not for the Indian market alone. The Indian market is not big enough for that as of now.

     

    Do you foresee digital overtaking television when it comes to news consumption? Or do they complement each other? Arnab Goswami recently said that by 2020, digital will probably overtake television. What is your viewpoint?

     

    In some sectors like news, yes, digital is likely to overtake television, but certainly not in all sectors. News will be travelling across multiple platforms.

     

    Brands like ZoOm and Times Now, which started on the broadcast medium, can now co-exist on the mobile platform with the emergence of the digital medium. I am not very sure if that will be the case with other genres. Maybe in the next elections, we will have a lot more apps giving competition to the broadcast platform. At the same time, television channels will also have a lot more viewership on apps. In the foreseeable future, both the platforms will complement each other and happily co-exist.

     

    What kind of push and emphasis is the network giving to the digital medium?

     

    We are ready to go full-fledge in terms of the launch of Times Now app. Video-on-demand (VOD) totally depends on Intellectual Property (IP) and we have some very strong IP in terms of Times Now’s News Hour and Frankly Speaking. However, to venture into VOD, we will need more IP. 

     

    Arnab is someone who every CEO would love to have in his team but do you sometimes feel that he is becoming bigger than the brand?

     

    (Laughs) That is like asking a production company if they were happy to have Johnny Depp or Salman Khan in their team. What I would say is that we are happiest to have him inside rather than outside. 

     

    Times Network recently promoted Arnab as the editor in chief of ET Now. What is the road ahead for ET Now and what role will Arnab play?

     

    ET Now has completed six years. The channel, in its first three and half years of existence, was able to challenge CNBC and become number one. The fact that we have been able to challenge CNBC is a big achievement.

    Getting numbers, viewership or reach is not what we want out of this market. ET Now’s challenge is something larger, which is to be appealing to a broader base than just the so-called ‘stock market players’ or ‘business viewers.’ And that is exactly where Arnab would be useful. 

     

    Can you throw some light on ZoOm’s positioning and the way forward?

     

    When we had launched ZoOm, music formed 80 per cent of the programming mix, whereas now that number has come down to 60 per cent. So 40 per cent of the channel’s programming is now content. Ideally, as we go forward, I see almost 65 per cent of the channel’s content comprising Bollywood trends, lifestyle and trivia. And viewers will be able to consume this content on the broadcast platform, as well as on platforms like digital and social media.

     

    Is the Indian media and entertainment industry moving towards more subscription and less ad revenue model? What is the scenario at Times Network?

     

    In the industry, we are already subscription positive. When it comes to Times Network, we are yet to shake off the burden of carriage fees and hence, we are still advertising led. Moreover, that is also because we don’t have a large channel, which at times is a handicap when it comes to distribution. 

     

    But yes, over the last two years, significant headway has been made. DTH operators and MSOs have started acknowledging the fact that we are a useful bunch to increase ARPUs. When it comes to the high-end consumers, you cannot have a distribution and subscription pack without including the Times Group channels. We have subsequently been able to use that to our advantage to improve our carriage versus subscription position. Our net income has improved. We are sure that it will continue to improve and we will get to a positive situation in a year or so and that’s big.

     

    Going forward what is the road map ahead for Times Network? Will there be any new launches?

     

    We would like to launch at least one or two channels every year complementing our catalogue. Property Now is a complement to ET Now, whereas MN+ complements Movies Now. So we will launch a new channel wherever we feel a need gap, which can be profitably filled.

     

    One thing I am sure of – both the channels that we have launched or any channel that we launch in the future, will be successful in year one.

     

    For the next couple of years, what we need to articulate is the fact that the sum is a lot more than individual parts. What I mean by this is, when you look at the holistic picture, we are talking to top two per cent of Indians. India’s population is 134 crore and India’s monthly English viewership is 2.6 crore, which is exactly two per cent of country’s population.

     

    On a regular basis, we are talking to 1.3 crore people, which means that we reach out to one per cent of India every day. However, when you look at that one per cent, it’s not just any one per cent. We are serving India’s most influential broadcast audience, and that is very important because that’s not just any audience. We are reaching to the decision makers. Last year, we managed to secure 30 per cent growth. My primary target is to secure 30 per cent CAGR for the next two years as that will take us to a very strong position as a network.

     

    What is your take on the digitisation progress so far?

     

    Given the size of the market, its ability to pay for boxes and the current state with reference to the mostly unorganized sector, DAS Phase I and II have really happened at commendable speed. Now we need to wait and watch the progress that takes place in the Phase III and IV. However, I am not very satisfied with the way Phase III has progressed.

     

    Has the new government addressed key issues bothering the media and entertainment industry? 

     

    I don’t think we are in a situation where things can be changed overnight. What we all are now looking at is Phase III and IV of digitization. The most important contribution I expect from the new government is to pace up the economy. If the pace is good, media will be good. Businesses like ours are very heavily advertising led and advertising follows the economy. As of right now, if we have done so well last year as well as this year until now, it’s because of the new government.

     

    What’s your take on BARC?

     

    I am very happy with BARC fundamentally because we have been able to hold on to our leadership. Moreover in the case of ET Now and Movies Now, our ratings have improved.

     

    Overall, the transition was smooth. And even though there have been some teething issues, I think things will get sorted in time. The management team and the technology are able and good.

     

  • “We are aiming to get digital users to switch to our OTT platform”: RC Venkateish

    “We are aiming to get digital users to switch to our OTT platform”: RC Venkateish

    At a time when digitization of cable television is throwing up a major challenge to direct-to-home (DTH) operators, Dish TV has reported a 55.2 per cent higher profit after at Rs 54.21 crore in the quarter ended 30 June. It is the first DTH company to report a profit after tax, also adding 390,000 subscribers, which was only slightly lower than the figure of 404,000 in the fourth quarter of 2014-15. Dish TV now has 13.3 million subscribers. The ARPU is more or less the same, but subscriber acquisition costs are running at Rs 1750 per subscriber.

                         

    In an interview with Indiantelevision.com, Dish TV CEO RC Venkateish spoke of the work that had gone into achieving this success.

     

    Excerpts:

     

    To what do you attribute your success in reaching out to more subscribers and coming up with an impressive revenue figure?

     

    I feel that the credit goes to better marketing strategies and the youth-based Zing, which has been lapped up by the people because of the local content. In fact, Zing has also succeeded because there is greater emphasis on the language of the region where it is beamed with local content and programming.

     

    Can you throw some light on the plans to launch Zing in the Kerala market?

     

    Zing has been present in the Bengal, Tamil Nadu, Andhra Pradesh and Maharashtra. And we are now expanding and moving to Kerala with Malayalam content.

     

    Dish TV’s subscription figures are somewhat lower than those in the last quarter of 2014-15. Comment.

     

    Well, the effort is to consolidate and grow. Dish expects to add 1.5 to 1.7 million subscribers this year. Do not overlook the fact that last year we had got 332,000 subscribers in the same period (first quarter of 2014-15). The gradual shift to digitization will also help, and therefore the concentration at present is on Phase III and Phase IV.

     

    But the ARPU shows an increase of only one rupee over the previous quarter, ending up at Rs 173 a month.

     

    The ARPU is always typically low in the first quarter but picks up later.

     

    The Government is emphasizing on indigenous set top boxes. Are you installing local STBs for your subscribers?

     

    Dish is currently getting these mostly from Korea though every effort is being made to get good quality indigenous STBs.

     

    Dish TV also has a tie-up with Kolkata Knight Riders. How much of the budget goes into marketing and advertising?

     

    The players wear Dish TV armbands, and the tie-up gives us the opportunity to have in-stadia advertising through boards etc.

     

    I would not say budget, but around 3.5 per cent of the topline sales go into advertising and marketing. The advertising is not done merely through Zee’s own channels but also through other channels, digital platforms, hoardings, newspapers and FM channels.  

     

    Can you tell us something about your future plans?

     

    We are working on our over-the-top (OTT) platform – DishOnline and aiming to get digital subscribers on to this platform.

     

    There has been some tirade against local channels run by DTH operators. Comment.

     

    We do not have a local channel. But the channel that opens as one switches on Dish is aimed only at advertising various schemes of the platform and modes of payment.

     

  • Made-in-India STBs sale to witness 15% growth in DAS phase 4

    Made-in-India STBs sale to witness 15% growth in DAS phase 4

    NEW DELHI: With the government’s emphasis on Make in India, local manufacturing of set top boxes (STBs) that are built within the country is showing a steady increase, even as India continued to lead STB shipments for the quarter ended June 2015 accounting for about 94 per cent of the total shipments to the SAARC region (Bangladesh, Nepal, India, Pakistan and Sri Lanka).

     

    With digitisation in India and other countries in the region propelling the demand for SD STBs to HDTV and hybrid boxes, the STB market in major South Asian Association for Regional Cooperation countries is witnessing steady and robust growth.

     

    According to research from Dataxis, indigenous manufacturing had been merely five per cent in the Phase I and Phase II of Digital Addressable System (DAS). While this has seen a steady growth in the third phase, the sale of Made-in-India STBs is likely to witness growth up to 15 per cent in the fourth phase of digitization.

     

    “Local manufacturing in India, which got a shot in the arm with the Indian government’s Make-in-India initiative, is slowly picking up as indigenous brands are signing deals with MSOs in third and fourth stage. The local STB brands are opting to independent, regional MSOs than the pan-India MSOs or national players,” says Dataxis analyst Sreeja VN.

     

    STB shipments to SAARC countries have witnessed 20 per cent quarter-on-quarter growth during the second quarter of 2015. In Q2 2015, 4.38 million STBs were shipped in the SAARC region with an estimated value of $96 million.

     

    The Dataxis research also finds that the quantity of the STB shipments in India the first half of this year has declined compared to the same period a year ago. However, the total number of STBs shipped in Q2 2015 registered an increase on quarter-on-quarter basis.

     

    Technicolor tops the STB shipments to SAARC in the Q2 2015. The company’s recent deal to acquire Cisco’s STB unit could further bolster Technicolor’s presence in the SAARC STB market.

     

    Airtel Digital TV, Dish TV and Videocon d2h, the three major DTH players have announced their plans to focus on deploying indigenous brands, which will give a boost to domestic manufacturing of STBs in India. The first half of the 2015 also witnessed DTH players partnering with Indian brands to source STBs manufactured indigenously.

     

    Another notable trend, according to Dataxis Research, is the increasing demand for HD STBs in the region. Dataxis’s analysis of STB shipment for the H1 2014 and H1 2015 depicts steady growth in the volume of HD STBs shipped to India. The rise in the number of HD STBs has also contributed to a rise in the average selling price of STBs shipped in the first half of 2015 compared to the same period last year.

     

    The report says that the key STB vendors for the quarter are: Technicolor, Skyworth, Changhong, Huawei and Coship (international vendors), and Mybox, One-eIGHT technologies, Trend Electronics, Ridsys, and Willet Communications (domestic vendors). 

  • DD spent Rs 300+ crore for infrastructure digitisation during last 3 years: Rathore

    DD spent Rs 300+ crore for infrastructure digitisation during last 3 years: Rathore

    NEW DELHI: Doordarshan incurred a sum of Rs 301.45 crore during the last three years towards digitisation of its infrastructure.

     

     This included expenditure incurred on digitisation of studios, transmitters and High Definition TV (HDTV).

     

     The Parliament was informed by Minister of State for Information and Broadcasting Rajyavardhan Rathore that digitisation in Doordarshan results in better quality of program production thereby ensuring a better quality of service to the viewers.

     

    HDTV picture quality is five times the resolution of Standard Definition (SD) picture. 

     

    Digital television offers new possibilities to viewers and broadcasters with the improved technical quality of picture and sound, additional programmes and additional reception modes (portable and mobile).