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Tag: DPO

  • TRAI issues consultation paper on regulatory framework for ground-based broadcasters

    TRAI issues consultation paper on regulatory framework for ground-based broadcasters

    Mumbai: The Telecom Regulatory Authority of India (TRAI) has issued a consultation paper titled ‘Regulatory framework for ground-based Broadcasters’, inviting input from stakeholders on the need for a regulatory framework to govern ground-based television broadcasting technologies.

    The ministry of information and broadcasting (MIB) has, over the years, issued guidelines for the uplinking and downlinking of satellite television channels in India. These guidelines mandate that broadcasters use satellite-based mediums to provide their channels to distribution platform operators (DPOs). However, advancements in technology have now made it feasible for broadcasters to distribute their content terrestrially. Like satellite-based television, terrestrial broadcasting can also be carried over multiple DPO networks, allowing commercial retransmission to subscribers.

    In light of these technological advancements, there is now a recognised need for a regulatory framework to enable the use of ground-based broadcasting technologies.

    TRAI had earlier forwarded recommendations on the regulation of platform services, including those relevant to ground-based broadcasters, to the MIB in 2014. However, the MIB’s recent communication, dated 22 May 2024, notes that while guidelines on platform services were issued in 2022, the context surrounding TRAI’s 2014 recommendations regarding ground-based broadcasting may have evolved. The MIB has thus requested TRAI to review and issue fresh recommendations under Section 11(1)(a) of the TRAI Act, 1997.

    In response, TRAI is now seeking comments on the newly released consultation paper. Stakeholders are invited to submit their comments by 15 November 2024, with counter-comments due by 29 November 2024. Comments can be submitted electronically to advbcs-2@trai.gov.in and jtadv-bcs@trai.gov.in.

  • ARASU to pay deficit of Rs 138.7 cr to SPNI as per DAS audit : TDSAT order

    ARASU to pay deficit of Rs 138.7 cr to SPNI as per DAS audit : TDSAT order

    Mumbai: In a landmark ruling, the Telecom Disputes Settlement and Appellate Tribunal (TDSA) has directed Tamil Nadu Arasu Cable TV Corp (TACTV) to pay Rs 138.75 cr to Sony Pictures Networks India (SPNI) for underreporting the subscriber base as revealed in the DAS audit, leading to financial loss to the broadcaster.

    The amount needs to be paid within two months from the issued order (16 February), said the Tribunal, posting the matter for further proceedings on 9 March. As per the order, the amount is 50 per cent of the original claim amount of Rs 277.58 cr sought by the broadcaster in its petition before the Tribunal in May 2021.

    According to the guidelines of the Telecom Regulatory Authority of India (Trai) pertaining to the NTO regime 2019, all distribution platform operators (DPOs) are required to conduct a Digital Addressable Audit (DAS) audit of their head-ends mandatorily once in a calendar year. The DPOs can choose any of the empanelled auditors listed by Trai for the purpose. In case of any DPO not conducting such audits, the broadcaster can conduct the same via the empanelled auditors for the said calendar year.

    In its petition before the Tribunal, SPNI had stated that TACTV ARASU had been consistently postponing the DAS audit. Despite several reminders by the SPNI distribution team, the distributor kept postponing the audit till November 2020 citing the Covid situation. Finally, the audit was done by the Trai empanelled audit agency- BDO India LLP in December 2020. As per the audit procedures, all the data extraction was done by the ARASU representatives along with the CAS/ SMS vendors in front of the auditors.

    The Auditors submitted the findings and reports to both ARASU and SPNI on 19 January 2021, which on careful analysis revealed that seven ARASU packs that had SPNI channels were not disclosed in the monthly subscriber reports (MSR’s) submitted to SPNI. “This amounts to piracy and under declaration of sub-bases led to a revenue impact for SPNI,” the broadcaster argued.

    Further, a close analysis of the CAS data recovered from 19 February till November 2020 revealed that two packs out of undisclosed seven packs carrying SPNI channels were available to the entire universe of 2.8 million subscribers of ARASU and again, none of these numbers was disclosed to SPNI in the Monthly MSR’s. According to the broadcaster, this has resulted in a huge financial accumulated outstanding impact month on month amounting to a value of Rs. 277.52 Crores, unpaid by ARASU.

    After receiving no response from ARASU despite several reminders, SPNI approached TDAST in May 2021 and submitted the entire case and a prayer for a hearing and resolution on this matter. After prolonged arguments and counter-arguments by the SPNI counsel represented by senior advocate Gopal Jain and Kunal Tandon, the Tribunal was convinced that ARASU has been underreporting the subscriber base due to which SPNI’s legitimate rightful monthly fee accrual was way below the actual rightful amount.

    “If 50 per cent of the amount indicated above is paid within two months, the petitioner (SPNI) shall not issue disconnection notice without seeking leave of the Tribunal,” the order stated.

  • Broadcasters promoting pay-TV on Free Dish are shooting themselves in the foot – Saurabh Sancheti

    Broadcasters promoting pay-TV on Free Dish are shooting themselves in the foot – Saurabh Sancheti

    Mumbai: With a 40 million base, which is constantly growing at the cost of Pay-TV, Prasar Bharati’s DD Free Dish is not just another competing platform, but considered by many as a precursor to the success of Free Ad-Supported Television (FAST) model in India. The implementation of NTO 2.0 is going to further intensify this cannibalisation. While broadcasters are riding the FTA wave, some fairly and some in an unfair manner, distribution platform owners are pushing for regulatory intervention and new ways to tackle the challenge.

    Saurabh Sancheti – Business Head | Hathway GTPL,   has long been advocating and working towards building a ‘rupee-a-day’ product that can take on Free Dish. At the Video & Broadband Summit organised by Indiantelevision.com on 19 January, he outlined the approach that is needed to arrive at this solution.

    “Out of the country’s 280-300 million households, nearly 200 million own a television set, and of this, only about 120 million have Pay TV. MSOs and broadcasters have to work together on wooing the remaining 80 mn base with a customised product. LCOs too need to reinvent themselves by adopting digital technology that serves their customers better,” he said. Sancheti is confident that if all players can collaborate on it, not only can the economics be worked out, but the pay-TV basket can be grown by at least 30-40 million in the next couple of years.

    Cog in the wheel

    In the current scenario, (short-term) gains and survival concerns are driving the top and bottom of the pyramid. Elaborating on what he terms as “death by annual plan”, Sancheti remarked, “Broadcasters promoting Pay-TV on Free Dish are shooting themselves in the foot. No matter how big you become on Free Dish, the platform cannot be monetised.”

    “They need to understand the possibilities of working with the DPOs. As people’s income levels increase, they will spend more on subscriptions. Those who join at a Free Dish equivalent pricing today, can become our regular and even premium customers tomorrow. But instead of thinking about taking customers up the funnel, and about the long-term growth of pay-TV, they are worried about their annual and quarterly targets,” he rued.

    Further, he noted that with infrastructure sharing and cheaper bandwidths making it possible to achieve last-mile delivery to the level of a gram panchayat at very low costs, distribution networks will also have to re-engineer themselves to align with the broadband revolution that’s underway.

    It’s obvious that the postulated rupee-a-day product cannot run in the same high-touch manner as the current base is running and hence the requirement of “lot more digital, lot more long-term packs and lot more of DIY”.

    Would that mean LCOs losing control of the last mile and eventually dropping out of the value chain? Commenting on the long-standing issue, Sancehti stated, “The primary models have failed, and MSOs realise that they cannot reach out to consumers directly, but only through the LCOs. That being said, today, consumers want more control. This is the reason why DTH, which has declined globally, is still surviving in India. It is the only medium that allows you to do everything yourself; from channel selection to bill payments. So, the risk of being eliminated is clearly there, however, it’s not because of the large players but the LCOs’ unwillingness to reinvent.”

     The next big opportunity

    Sancheti believes that the linear TV model still has a lot of scope left. Out of the 200 million TV-owning households in India, the top tier of 20-25 mn has both pay-TV and fixed-line connectivity. Their number is growing, and so is their OTT consumption.

    The second set of 100 mn households, which is 70 per cent urban, consumes linear TV on the large screen and OTT on private/mobile screen. It will gradually go the 25 mn way.

    The remaining 80 million (TG for the rupee-a-day product) are the ‘cord nevers’ who are subscribed to either analogue or Free Dish today. As their income levels increase and more content and services suitable for them are made available, they will move up the ladder into the pay-TV base.

    Sancheti, however, finds the 100 million ‘TV nevers’ equally if not more promising than the 80 mn cord nevers. “At Den, Hathway, and GTPL, we believe this is where the opportunity lies to as much as double our base. As the economy progresses, spends on services will increase exponentially, and we are reinventing ourselves for the change; whether it is by way of working on connectivity/network or by value engineering the set-top boxes that begin at an 800 Rupees price point today.”

    Pinpointing the 100 mn challenge and opportunity, he added, “It’s not like the cable hasn’t reached the ‘villages’. The problem is that it has found only 500-odd homes/subscribers there. The art is in doubling this number by offering the right product and pricing.”

    Impact of NTO 2.0

    Winding up the discussion with a word on the present state of regulation and the impact of NTO 2.0, Sancheti observed that “whatever rationalisation had to happen in terms of channel selection at the customer end has already happened with NTO (2019). Beyond a point, more à la carte will only do more harm. With NTO 2.0 we are looking at a 25-30 per cent increase in prices as per published broadcaster RIOs. India being a price-sensitive and value-seeking market, this will further pressurise the PayTV base, leading to more people opting out of it.”

     

    Please Note : “The views expressed are personal and do not represent the views of Reliance Industries Limited or any of group companies”

  • VBS 2022: Getting ready for the post-pandemic world

    VBS 2022: Getting ready for the post-pandemic world

    Mumbai: Indiantelevision.com is back with the 18th edition of the Video & Broadband Summit (VBS). The day-long summit will be held virtually on 19 January 2022, from 10.00 am to 5.00 pm. VBS 2022 is co-powered by broadpeak. Disney Star is presenting partner and NxtDigital is the summit partner.

    This year’s Video & Broadband Summit will provide a platform for industry and opinion leaders to discuss key issues being faced by the television industry as a result of the Telecom Regulatory Authority of India (Trai)’s New Tariff Order 2.0, broadband-fuelled growth of digital platforms, and the impact of cord-cutting on DPOs, as well as the possible ramifications of the impending 5G launch that has already created a stir among broadcasters and distributors.

    Some of the broad themes to be covered include Rising Cost of Video Entertainment, Changing Business Models and Revenue Models, Value-Added Services, and getting back to basics in a Post-Pandemic World. VBS 2022 will also delve into the concerns and opportunities around the 5G Teleco Threat, Virtual MVPDs, Cable TV’s Technology, and Back-End Challenges, DPO’s Marketing Drive, and the gradual expansion of Over the Top (OTT) Platforms.

    The summit will begin with an introduction by Indiantelevision.com Group founder CEO and editor-in-chief Anil Wanvari, followed by a presentation on the rising cost of video entertainment.

    First on the agenda is a fireside chat with M&E consultant Anuj Gandhi. During the next session moderated by former senior VP Star TV and CEO KCCL Shaji Mathews, Fastway’s Prem Ojha, Travelxp’s Prashant Chothani, Asia Satellite Telecommunications Holdings’ Rajdeepsinh Gohil, Shemaroo Entertainment’s Sandeep Gupta, BBC Global News’ Sunil Joshi, and Zeel’s Anil Malhotra will share their thought on ‘Getting Back to Basics and to a Post Pandemic World’.

    Lined up next is another fireside chat between NxtDigital MD and CEO Vynsley Fernandes and Anil Wanvari. Thereafter Gurjeev Singh Kapoor (Star & Disney India), Vynsley Fernandes, Amit Arora (Indiacast Media Distribution), Sambasivan G (Tata Sky), Ashish Pherwani (E&Y), and SN Sharma (DEN Networks) will delve on ‘Shaping the growth of linear TV distribution and subscription’.  

    In the post-lunch session, a panel consisting of MN Vyas (founder-director PlanetCast), Abhishek Gupta  (vice president IT, Dish TV), Yann Begassat (business development director, Broadpeak), and Salil Thomas (general manager & head ACV & Technology,  Asianet Satellite Communications Ltd) will demystify ‘The 5G Opportunity’ for the viewers. The talk will be moderated by Satcom Industry Association – India, senior director technology and policy Rajeev Gambhir.

    Following a fireside chat with Jio Platform’s Saurabh Sancheti, the event will wrap up with a discussion on ‘Delighting the Indian Consumer – Challenges & Opportunities’ between Rajib Mukherji (EVP-Strategy, IndiaCast Media Distribution Pvt Ltd.), Nagesh Chhabria (promoter, Metrocast), Rouse Koshy (chief operating officer, NXTDigital) and Yatin Gupta (senior VP, GTPL).

    The Video & Broadband Summit (VBS) 2022 will be live-streamed on Indiantelevision.com’s social media handles.

    For more details: https://www.videoandbroadbandsummit.com/ 

  • #Retrace2021: The year of regulatory challenges and no TRPs for news channels

    #Retrace2021: The year of regulatory challenges and no TRPs for news channels

    Mumbai: The year 2021 began with a rather chaotic legacy handed over by 2020. In the aftermath of the TRP Scam, TV ratings for the news genre remained suspended throughout the year. The legal tussle between Telecom Regulatory Authority of India (Trai) and broadcasters over the rollout of the New Tariff Order (NTO) 2.0 continued to dominate the headlines.

    Adding to this, was the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules, 2021), announced in February which set the ball rolling for regulation of digital and social media. This was followed by the Cable Television Networks (Amendment) Rules, 2021 (CTNA 2021) and the proposed amendments to the Cinematograph Act, 1952, all of which sought to regulate content across media including digital, and align it with ‘public interest’.

    Also Read: SC refuses to grant interim protection to Tandav makers

    The year began with the controversy over the Amazon Prime web series ‘Tandav’ which became the tipping point for the government which was already deliberating the regulation of digital media including social. The show and its star cast was accused of hurting the religious sentiments of a particular community prompting the show’s director Ali Abbas Zafar to issue an unconditional apology on social media. The spate of FIRs and threats continued unabated despite the omission of two ‘objectionable’ sequences, and apologies from the platform and its then country head Aparna Purohit.

    Also Read: Tandav : And the future of storytelling

    While the hitherto pampered OTT-verse was bracing itself for government oversight, the pay-TV universe continued to be cannibalised by it and DD Free Dish at the top and bottom tiers. Even as distribution players worked on diversifying their offerings to embrace the imminent digital takeover and on building new ones to challenge Free Dish, they kept pushing for regulatory interventions to tackle the issue at its core. Though well within its rights to strive for survival, in the process of manoeuvring these challenges, the industry ended up creating another flashpoint between the regulators/government and itself.

    2021 closed with a trailer to the next big fight with Trai questioning the availability of linear channels on OTT and telco apps which, it said, is in violation of Clause 5.6 of Policy Guidelines for Downlinking of Television Channels dated 5 December 2011. Broadcasters, on the other hand, invoked section 37 of the Copyright Act 1957 known as Broadcast Reproduction Right (BRR) to justify their channels’ presence on their own OTT platforms and third-party aggregator apps. Also because they are not licensees under Trai Act, they do not fall under the scope of Trai Act or Interconnection Regulations or Clause 5.6 of Downlinking guidelines.

    Here, we take a look back at the regulatory events and challenges that re-defined the Indian TV industry in 2021.

    Legal tussle over NTO 2.0

    One of the biggest developments of the year was the pronouncement of the Bombay High Court order on the NTO 2.0 case on 30 June. After a legal tussle that lasted over a year, Trai had managed to get a green signal from the court on the implementation of the amended rules. While the HC upheld the constitutional validity of NTO 2.0, it termed one of the twin conditions “arbitrary”, according to which the maximum retail price of an a-la-carte channel could not be more than one-third the maximum rate of a channel in the bouquet.

    Also Read: NTO 2.0 Verdict : Who Wins What?

    Following the notification of NTO 2.0 in January 2020, several broadcasters under the umbrella of the Indian Broadcasting and Digital Foundation (IBDF) and a couple of other private channels challenged the amendment terming it “arbitrary and in violation of their fundamental right”. The NTO 2.0 prescribed linkage between a-la-carte price and bouquet via the imposition of twin conditions on bouquet pricing, and reduction in price cap from Rs 19 to Rs 12 for pay channels, thereby incentivising a-la-carte alone.

    Having recognised the adverse impact of NTO (2019) on all stakeholders including consumers, broadcasters and distributors refused to accept the judgement and challenged it further in the Supreme Court in July. After a series of adjournments, the apex court, on 30 November, posted the matter for hearing on 15 February 2022.

    Meanwhile, in November, Trai moved the deadline for implementation of NTO 2.0 from 1 December 2021 to 1 April 2022. Distribution platforms like DTH and cable will now have to seek subscriber choice till 31 March 2022, it said. The deadline for broadcasters to come up with their new reference interconnection offers (RIOs) and simultaneously publish the required information about channel and bouquet offerings, as well as their MRPs on their websites was also extended to 31 December.

    Also Read: Trai extends NTO 2.0 implementation to 1 April 2022

    Several large networks including ETV, Discovery Communications, Sun TV, Times Networks, ZeelL, SPNI, and others had come out with their new RIOs in October-November. In what looked like a refusal to back down, the broadcasters preferred to pull their popular channels out of the bouquets instead of reducing the price to Rs 12. Their move flies in the face of the regulators’ assertion and intention of preserving the interest of customers.

    Despite the short-lived benefits of incentivising à la carte and changes in NCF for broadcasters and distributors, the attempt to regulate channel pricing was soon recognised by all stakeholders as being counterproductive. Aside from having an overall negative effect on reach and viewership for broadcasters, it led to the shutting down of many niche channels which became inviable as a result of NTO implementation. The impact for distributors was felt when customers gravitated towards either OTTs or Free Dish to counter the increase in their monthly subscription bills.

    Also Read: DTH operators write to Trai over broadcasters offering pay channels on DD Free Dish

    The implementation of NTO 2.0 will further hasten this migration. Foreseeing the detrimental scenario, Direct-to-home (DTH) service providers including Tata Sky and Airtel Digital TV wrote to Trai in September asking the regulator to address the issue of broadcasters making their pay channels available on DD Free Dish. Alleging that this goes against the current tariff regime which mandates the designation of channels as either pay or FTA and prohibits their bundling together, they once again raised the demand for such designation to remain constant across distribution platforms.

    Also Read : There needs to be a level-playing field : Tata Sky CEO Harit Nagpal

    Further, in a letter dated 28 December written to Prime Minister Narendra Modi, the Delhi-based All Local Cable Operators Association alleged that the Trai and broadcasters are “forcibly pressurising” MSOs to implement the new tariff order, which will lead to cable TV operators, national MSOs and independent MSOs incurring huge losses. The NTO 2.0, if implemented, will lead to the unemployment of lakhs of families connected with the cable TV industry, it said. Several other representative organisations have also raised the issue with the government and regulators frequently.

    Also Read : Trai vs Broadcasters : Impact could be larger than expected

    IT Rules, 2021 & Cable Television Networks (Amendment) Rules, 2021:

    The introduction of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 by the ministry of electronics and information technology (MeitY) in February sought to regulate social media, digital platforms, and streaming services in the country through a three-level grievance redressal mechanism.

    The “soft-touch regulatory architecture” comprised Level I – self-regulation by broadcasters, Level II – Self-regulation by registered self-regulating bodies of the broadcasters, and Level III – oversight mechanism by the central government. Later in June, the government extended this framework to Cable TV with the Cable Television Networks (Amendment) Rules, 2021.

    Also Read: MIB amends Cable TV rules for redressal of broadcast related complaints

    Also Read: Trai issues new consultation paper to regulate monopoly in Cable TV services

    The new regulations, along with proposed amendments to the Cinematograph Act, 1952, brought together all forms of media in the country barring newspapers under the three-layer regulatory mechanism. Consequently, they also ran into troubled waters with broadcasting associations like NBA and IBDF and some independent players filing several petitions in various high courts.

    News Broadcasters Association (NBA) president Rajat Sharma wrote to the then I&B minister Prakash Javadekar requesting the exclusion of digital news platforms owned and run by traditional news media from the purview of the provisions of the new IT Rules, 2021. In July the organisation approached the Kerala HC with a writ petition contending that the oversight mechanism gives the executive “unfettered, unbridled and excessive powers to regulate the content of TV channels of news broadcasters.”

    Also Read : No exemption for mainstream media from IT rules

    The IBDF, Sun TV Network, and SJ Clement filed separate petitions challenging the constitutional validity of Part III of IT Rules 2021 and CTN Amendment Rules 2021 in the Madras high court.

    In May, IBF had renamed itself as IBDF bringing all digital/OTT platforms under its purview. It also announced plans to form a new subsidiary – an industry-led Self-Regulatory Body (SRB) called Digital Media Content Regulatory Council (DMCRC) to serve as a second-tier mechanism at the appellate level specifically for digital. The DMCRC is similar to Broadcast Content Complaint Council (BCCC) which IBF had successfully implemented for the linear broadcasting sector in 2011. 

    Also Read: Former SC judge Justice Vikranjit Singh Sen appointed chairman of IBF’s new self-regulatory body

    Overhaul of TRP ratings

    The committee on TRP ratings formed by the government in the aftermath of the 2020 TRP Scam came up with its recommendations pushing for the formation of multiple rating agencies in competition to Barc India and creating a specialised regulator to oversee all of them. The 39-page report submitted by the committee early this year was shared with Broadcast Audience Research Council (Barc) India and other broadcasters in November to take the discussions forward.

    Led by Prasar Bharati CEO Shashi Shekhar Vempati, the four-member team also included – IIT Kanpur, professor of statistics, department of mathematics and statistics, Dr Shalabh; C-DOT executive director Dr Rajkumar Upadhyay; Decision Sciences Centre for Public Policy professor Pulak Ghosh.  After consultation with stakeholders such as Barc India, MDPL, Zappr Media, Nielsen India, and Tata Sky AMS, the committee had issued several specific and sweeping recommendations on the technical aspects of TV rating measurement in India.

    Observing a broad consensus among industry stakeholders in favour of leveraging return data capabilities, it recommended that RPD should be made mandatory for set-top-boxes (STBs) deployed by distributed platform operators (DPOs). The collection of viewership data by DPOs is to be governed by privacy norms prescribed by the government/regulator. 

    Also Read : Govt committee seeks to set up specialised regulator for media ratings

    The report noted that crowdsourcing approaches could be economical alternatives to RPD and should be open to rating agencies to enrich panel-based measurement. The committee also batted for an open data ecosystem allowing academics and independent researchers access to algorithms and raw datasets to analyse, validate and enrich them.

    The television rating system in India had come under scanner in October 2020 when Mumbai Police claimed in a press briefing that they have probed a case of manipulation of TRPs and found some incriminating evidence. The police said the accused were allegedly bribing the households to keep a particular channel running, leading to several arrests. Three news channels, Republic TV, Fakt Marathi, and Box Cinema were named in an alleged TRP tampering scam. BARC had also temporarily suspended the publishing of weekly data for news channels, which remains in limbo to date.

    Also Read: MIB to implement TRP ratings recommendations soon: Anurag Thakur

    Making satellite-broadband services cheaper

    The cost of satellite-broadband services continues to remain on the higher side in the country, posing a major challenge to its wide adoption by the end-users. The issue was also taken by India’s telecom regulator which is looking for ways to drive down the rates of satellite broadband. Early this year, Trai also floated a discussion paper and sought views to make satellite communications more affordable in the country. 

    Among other issues, Trai also sought views on whether satellite service licensees should be allowed to obtain bandwidth from foreign satellites for providing IoT connectivity. Also, whether any specific or all bands should be permitted for provisioning satellite-based IoT connectivity. It also invited suggestions on whether a new licensing framework should be proposed for the provision of satellite-based connectivity for low-bit-rate applications or the existing licensing framework may be suitably amended to include the provisioning of such connectivity.

    Also Read: Trai seeks suggestions to make satellite broadband services affordable

    5G roll-out and spectrum clash:

    Earlier in the year broadcasters expressed concern over the rollout of 5G at a near-clashing frequency. Their apprehension was that the spectrum range of 3.0-3.6GHz identified for 5G does not allow for a buffer or ‘guard band’ before satellite television operates at 3.7 to 4.2 GHz. This could lead to disruption in television and radio services in the country. Even though welcoming of 5G has held great opportunity for the M&E industry in the era of convergence, broadcasters said that in the event they had to move to a higher frequency, the government should intervene with subsidies to offset the cost incurred.

  • Webinar: Building a homegrown content distribution security system

    Webinar: Building a homegrown content distribution security system

    KOLKATA: Taking ahead its webinar with experts across media and entertainment industry, Indiantelevision.com will be hosting a panel discussion on content security distribution ecosystem.

    Moderated by Indiantelevision.com founder, CEO and editor-in-chief Anil Wanvari, the discussion will revolve around – “Television: getting back to business; building a homegrown viable content security distribution ecosystem.” It will focus on other areas like acceptance of Indian origin CAS, digital TV tech, and how the vocal for local narrative will yield results for operators.

    Some of the prominent speakers include MyBox Technologies MD and CEO Amit Kharbanda, SITI Networks Ltd CEO Anil Malhotra, TRAI advisor Arvind Kumar, among others. It will be held on Wednesday, 16 December at 4 pm.

  • TRAI publishes consultation paper on platform service of DPOs

    TRAI publishes consultation paper on platform service of DPOs

    KOLKATA: Along with re-transmitting TV channels, the distribution platform operators (DPOs) provide certain programming services which are specific to their platforms. While the Telecom Regulatory Authority of India (TRAI) has been working around the regulatory framework for those platform services for some time now, the authority has again issued a consultation paper after the ministry of information and broadcasting (MIB) sent back references on earlier recommendations.

    MIB has referred back TRAI's recommendations on the framework published on 19 November 2014, and 13 November 2019 in its letter dated 23 November. The first set of recommendations have been accepted, except recommendation no.8 after consideration by inter-ministerial committee (IMC). However, certain addendums have been approved with modification.

    MIB had mentioned that some of the recommendations made by TRAI in 2019 regarding platform services (PS) offered by DTH operators, could be adopted with respect to MSOs/LCOs as well to have uniformity of guidelines in both segments. TRAI had agreed to the view.

    “Any person/ entity desirous of providing PS, or is already providing such services, must be incorporated as a company under the Indian Companies Act, 2013 and the rules framed thereunder,” TRAI had recommended earlier but that has not been accepted by IMC in the case of MSOs/LCOs.

    The committee is of the view that most of the MSOs/LCOs operated in small areas are either proprietorship or partnership firms which are not registered as companies. Making it obligatory for  MSOs/LCOs to convert into companies may not be in line with the promotion of ease of doing business. The IMC decided that anybody registered as a DPO, either with MIB or with post office, shall be eligible to carry PS channels.

    “In case MIB considers that there is no necessity to register as company for MSOs desirous to register their platform service, it should satisfy itself regarding the transparency of ownership and assurance of content of such platform services at the time of registration. MIB may ensure that registration of platform service channel may be made in such a way that the individuals provide full disclosure,” TRAI stated.

    Earlier, the regulatory body had recommended that a maximum number of five PS channels may be offered by the cable operators in non-DAS areas. In DAS areas and for all other platforms, a maximum of 15 PS channels may be offered by the DPOs.

    “With the completion of digitisation process, there is no distinction between DAS and non-DAS area. Further, it is noted while it is necessary to restrict capacity of PS channels carried by DPOs as recommended by TRAI, it is not in the interest of the evolving and dynamic market like cable TV to restrict the number of PS channels. Regulation may only intervene to the point of upholding customer interests, ethical business practices, ease of doing business and safeguard against violation of programming code and advertisement code. Taking note of this, it is recommended that the MSOs may be permitted to operate to a maximum of five per cent and LCOs to a maximum of one per cent, of the total permitted satellite channel being carried by them as permitted PS channels without any upper limit,” MIB said.

    The TRAI is of the view that the liberal regulatory framework of PS should not encourage the bypassing of the traditional broadcast routes. It further stated that it was not desirable to separately specify the limit on the number of PS channels that may be offered by the MSOs and LCOs. This may be left to the mutual arrangement among MSOs and LCOs. An MSO may remain responsible for all the platform service channels being offered on its platform.

  • MSOs see recovery in subscription collection post lockdown

    MSOs see recovery in subscription collection post lockdown

    KOLKATA: At the beginning of the Covid2019 crisis, distribution platform operators (DPOs) witnessed a sharp drop in collections from subscribers. After months of lockdown and controlled movements, major multi-system operators (MSOs) are seeing stability in their collections from June end. 

    According to a survey done by business intelligence enterprise Intin titled ‘Cable TV Fitness Check’ published in late May, the collection dropped for 84 per cent of cable operators, which was attributed to the unwillingness for digital payment and the lack of infrastructure, coupled with the social distancing norms.

    GTPL Hathway CATV business head and chief strategy officer Piyush Pankaj says that they have recovered the collections once the opening up started. Moreover, many new consumers have opted for digital payment. Hence, the payment collection issue has stabilised. Pankaj also added while 10-15 per cent of total collection dipped at the beginning of the pandemic, the scene has changed June onwards leading to 100 per cent recovery in the collection.

    Siti Networks Ltd CEO Anil Malhotra also echoes the same tone. According to him, the collection dropped by 20-25 per cent in March-April. While it recovered, there is still five to six per cent lag. However, he mentions that it is still facing an issue on the side of placement and marketing. 

    While UCN Cable Network director Jagdish Paliya states that two to three per cent recovery is still left, the collection is not difficult at this moment. There was 15 per cent drop in collection till May as the stringent lockdown made it difficult for last mile operators to reach the consumers.

    IndusInd Media & Communications Ltd (IMCL) CEO Vynsley Fernandes also reflects the positive sentiment of his peers in the industry. As everyone is adjusting to the new normal, some amount of stability has come, especially in terms of collection. He highlights another important trend that more consumers are paying digitally through payment gateways like Google Pay, PayTM, etc.

    Malhotra also agrees to the surge in digital payment from consumers but he notes that it is still not substantial despite a noticeable improvement. On the other hand, Pankaj says there has been an overwhelming surge in digital payment from the consumers’ side in the last four months. While it was 30-35 per cent pre-Covid2019 time, it has now reached 80-85 per cent. Metrocast Network Services promoter Nagesh Chhabria also says that it has converted more consumers into digital payment mode.

    With recovery, MSOs are likely to benefit from the growth in digital payments that they have witnessed during the pandemic.

  • NTO 2.0: DPOs express discontent over partial implementation of regulation

    NTO 2.0: DPOs express discontent over partial implementation of regulation

    KOLKATA: With constant changes in regulations, the pay-TV sector in India continues to face uncertainty. Major broadcasters have come together to fight the implementation of the amended new tariff order (NTO 2.0) as directed by the Telecom Regulatory Authority of India (TRAI). However, distribution platform operators (DPOs) have already complied with the network capacity fee (NCF), multi-TV charges, etc., under the new directive and express dissatisfaction over the partial implementation. 

    “TRAI had asked all DPOs to adhere with NTO 2.0 on NCF, multi-home and others. As broadcasters have not given any new rates, you can’t implement the full NTO 2.0. If you implement half NTO, you have taken whatever is negative on your books but whatever positive we could take from broadcasters’ side has not happened. Hence, it is harmful to both DPOs and subscribers. We will be struggling how to handle it if the issues drag on and broadcasters don’t come out with new prices,” says GTPL Hathway CATV business head and chief strategy officer Piyush Pankaj.

    While broadcasters are reeling under Covid2019 impact, TRAI came out with a directive to implement NTO 2.0 by 10 August. As the petition against it was already sub judice, the broadcasters went to the Bombay high court challenging the directive. The court asked both parties to go by “gentlemen’s word” and TRAI assured it would not take any action till the next hearing. The court is hearing the case today before a bench comprising justice AA Sayed and justice Anuja Prabhudesai. 

    Another executive from a national MSO also brought up the fact that TRAI made all DPOs to implement the order on 1 March. But DPOs could not implement new pricing without broadcasters publishing it. Hence, many DPOs reached out to TRAI saying that either broadcasters should comply with all the rules or the authority should roll back pressure on DPOs. He also informs that one of the large broadcasters already published new pricing with 10-15 per cent hike but was continuing with the old reference interconnect offer (RIO).

    “Any channel which is above Rs 12 cannot be clubbed in a bouquet. If broadcasters don’t reduce the prices to be included in the bouquet that will affect all our bouquets,” says Metrocast Network Services promoter Nagesh Chhabria. However, he adds that there is no issue currently as Metrocast is continuing with the old model.

    “It’s an ecosystem, you cannot implement regulations in bits and parts,” says UCN Cable Network director Jagdish Paliya. However, he adds that NTO 2.0 is not very favourable for DPOs, too, as making a discount on second box compulsory is harsh on the operators.

    But what if the order comes in favour of the implementation of NTO 2.0? Here, the DPOs echo broadcasters’ view that executing it amid a pandemic would be very difficult. While approximately 15 million pay-TV subscribers cut the cord during NTO 1.0 implementation, the executive from a national MSO posed the most important question – will more subscribers drop off now?

  • DPOs, consumer data and the art of upselling content

    DPOs, consumer data and the art of upselling content

    KOLKATA: In the age of online content platforms, knowing what consumers want has become the key to customer acquisition and retention. While these platforms have tons of data to woo the target audience, it is tough for traditional players in cable distribution ecosystem, especially multi-system operators, to have robust consumer profiling.

    However, (direct-to-home) DTH players like Tata Sky have already started innovating the area and MSOs are following suit slowly. At a distribution-related panel, ‘Broadcast and distribution challenges and the road ahead’, hosted by Indiantelevision.com, all the panellists agreed that if they need to upsell or cross-sell content, a significant amount of data is needed.

    “We do a bit of analytics. In the DTH industry, there is only one way of communication, the return path data (RPD) is not there. However, we have tens of thousands of dongles, through which we get some back-channel data, the reverse path identification based on which we do some customer segmentation like what channels they are watching, which regions are focusing on which channels. We are seeing as a trend that there is an inclination towards watching more regional content that has accelerated during Covid2019 pandemic,” said Tata Sky chief financial officer G Sambasivan.

    “We try and do a lot of upselling based on customer analytics so that our hit rate in terms of conversion is on the higher side so that we don’t do carpet bombing. We select those customers and we try to upsell channels to them based on our estimate of which will be appealing to which type of consumer,” he added. According to him, Tata Sky has tasted success in the method and so, keeps improving analytical capabilities.

    IndusInd Media & Communications Ltd (IMCL) CEO Vynsley Fernandes said that the problem is bigger for MSOs due to two major issues. Firstly, RPD will come at a high cost. Secondly, unlike DTH players, MSOs don’t have access to last mile-consumers directly since local cable operators (LCOs) act as the medium of connection. However, he mentioned that some MSOs are studying consumers but have not deployed any system yet. Moreover, if they deploy anything there is a concern about what is a valid sample size. He also mentioned that IMCL has been working with LCOs to build its database. Although he acknowledges that it is not optimal like other industries, it is getting better slowly.

    “Since the customers are with us for 25 years, it is impulse and intuition that helps us drive the ARPUs. Around 60 per cent customers go with DPO packages,” Metro Cast Network Services Pvt Ltd promoter Nagesh Narayandas Chhabria said. 

    Indian Cable Net Company Ltd director Suresh Sethia also spoke of the broadband box integrated with the network of cable users that gives them data on who is watching what. They have at least 3000 such boxes.

    Siti Networks Ltd CEO Anil Malhotra said that as they are in b2b business, they can’t have direct contact with consumers, especially with LCOs in the middle. “But whatever choices customers have made are saved in our back end. Based on that, if any upselling or marketing has to be done, we can easily do it. As our business model is b2b, we consider what operators are doing in real-time is better. On a single way of communication, there will be a limitation,” he added. 

    PwC India Entertainment partner media and sports advisory leader Raman Kalra did not agree to this view as he thinks every business is b2c in the M&E sector. He cited the example of print industry that did not have a direct connection to consumers and now the industry is struggling to adjust with digitisation. 

    “Until and unless you [DPOs] go and check with you customers and have a reverse path, you will always be conjecturing what your customers are watching. While in past we could not have it, going forward we can align our LCOs also to the idea that is important to know what our consumers are watching. It would help you to build a business for yourself as well as for your direct consumer. So, it’s time we get LCOs on partnership mode, teach them, educate them, and only then will it unlock. Otherwise, all will keep going in circles,” Star and Disney India distribution and international business president and head Gurjeev Singh Kapoor commented.

    IndiaCast Media Distribution Pvt Ltd president Amit Arora said that they have to offer various propositions so they can hold on to consumers.