ITV

Tag: DTH

  • Seven free Fashion TV 4K UHD channels available in India

    MUMBAI: Fashion TV has launched a 4K revolution in the country and surrounding regions by starting transmission of first seven FTA 4K UHD (Ultra-HD) television channels after NASA’s scientific content channel.

    The new channels can also be seen in China, Pakistan, the Middle East, East Africa and South East Asia, Ultra News reported.

    The channels utilise new video compression technology called HEVC or H.265 to reduce the amount of bandwidth needed for transmitting UHD content.

    The new channels however cannot be watched using most of the satellite receivers and available STBs. 4K satellite receivers with HEVC support in India at present costs around Rs 4,500, compared to Rs 1,000-1,300 for HD receivers with MPEG-4 support. But, cheaper HEVC models with 4K support could be purchased from e-commerce websites.

    The seven channels are being telecast from Apstar 7 satellite, which has been placed over India. The channels cater to different areas of fashion, such as films, make-up, photoshoots, men’s fashion, ‘midnite secrets’ and events.

    In India, a majority of the Ku-band channels are encrypted, and viewers need smart cards from DTH providers such as Dish TV and Tata Sky. Some services such as DD’s FreeDish and ABS are transmitted without encryption.

  • The shape of Indian OTT universe circa 2021 according to Rethink Tech Research

    MUMBAI: This should put OTT players on alert and gladden the hearts of linear TV distribution and programming executives. The latest numbers about how India’s video guzzlers are going to consume VoD services by the UK-based industry tracker Rethink Technology Research reveal that India will have about 14.6 million VoD subscribers by 2021. Indiantelevision.com estimates are that, comparatively, Indian DTH will account for about 75 million active subscribers and cable TV more than 100 million by then.

    Clearly, VoD will have made a marginal dent in eroding linear TV distribution platforms stranglehold on Indian viewers thanks to the lower sticker prices for cable TV and DTH, which will possibly continue to be in play even in 2021. Cord-cutting, which is becoming increasingly common in many markets, may not really make its way to Indian shores.

    Yes, the data suggests that India will be the second largest market in Asia Pacific after China which will account for 60 per cent of the Asia Pacific’s $10 billion subscription revenues and 200 million subs, by 2021. (The corresponding figures for 2016 are at $6.5 billion and 100 million respectively.)

    “Asia Pacific is made up of a multitude of contrasting individual markets, making it fragmented and complex with broadband penetration above 50%, in some regions and below 10% in others,” said a statement from Rethink Technology Research.
    There will be a hard pitched battle for subscription shares between the 30 odd OTT players in the game in India. By then probably many more OTT providers will have stomped into the terrain. And hence one wonders how many of them will be profitable.

    Both, Netflix and Amazon Prime, are just about beginning to plonk down top dollars – like India has not seen before – on original shows which should hop on to their India – and later global – offering by next year. Hotstar and Viacom18’s Voot have also been investing heavily to acquire customers. Estimates are that the two have pumped in around Rs 4000 million and Rs 1400 million, respectively, since launch. Others such as Viu, NextGTV, Spuul, ErosNow, Hooq, SonyLiv, YuppTV and Alt Balaji too are in a customer acquisition phase, having just got onto the runway.

    The good news, according to Rethink, is that pure play SVoD services in APAC (expected revenues by 2021: $6.29 billion) will dominate operator-supplied services.

    As far as APAC is concerned, the research house predicts that Indonesia and Japan will be third and fourth, with each increasing to 9.96 million and 8.1 million by 2021, respectively.

  • Lower deferred tax asset & demonetisation lower Dish TV numbers

    BENGALURU: The largest DTH operator in India in terms of subscriber numbers – Dish TV Limited (Dish TV) reported less than one-sixth profit after tax (PAT) for the year ended 31 March 2017 (FY-17, current year) as compared to the previous year. The company reported PAT of Rs 1,092.8 million for FY-17 as compared to PAT of Rs 6,924.2 million in fiscal 2016. Dish TV has shown deferred tax asset for FY-17 at Rs 740.3 million as compared to Rs 4,360 million in FY-17. The company’s assets and liabilities statement for FY-17 shows deferred tax asset of Rs 5,100.3 million – the sum of the deferred tax asset for both years.

    In its earnings release, Dish TV says that demonetisation outdid a good monsoon as well as thriving economic conditions of the last year. Consumer spending remained a challenge from the latter half to the fourth quarter. The initial growth momentum that could have catapulted the DTH industry to the next level in terms of subscriber additions, took a temporary but prolonged hit. The DTH industry slightly de-grew in terms of new acquisitions during the fiscal despite coming closer to the implementation of digitisation. Dish TV saw subscribers conserving cash for bigger necessities right from the time demonetisation was announced in November up to the end of the fiscal.

    Dish TV managing director Jawahar Goel said, “Fiscal 2017 threw up unprecedented challenges but the Dish TV team took things in its stride. We minimized the impact of demonetisation while focusing on a long-term advantage in the form of recharges through online modes. Despite the odds, Dish TV managed to increase its reach and subscriber base.”

    The company reported 1,029 thousand net subscriber additions during the year to take its subscriber base to 15.5 million.

    Dish TV reported operating revenues of Rs. 30,144 million in FY-17, up 4.2 percent as compared to Rs 28,941 million in the previous year. Subscription revenues of Rs. 27,696 million in the current year were 4.1 per higher than the Rs 26,617 million in the previous year.

    Dish TV EBITDA declined 5.1 percent in the current year to Rs. 9,728 million (margin at 32.3 percent) from Rs 10,249 million (38.5 percent margin) in FY-16.

    Dish TV’s total expenditure in FY-17 increased 9.2 percent to Rs 20,415 million from Rs  18,692 million in the previous year. Cost of goods and services in fiscal 2017 increased 9.5 percent to Rs 14,371 million from Rs `13,122 million in FY-16. Employee Benefit Expense in FY-17 increased 9.5 percent to Rs 1,465 million from Rs 1,229 million. Sales & Distribution Expenses increased 9.6 percent in FY-17 to Rs 3,108 million from Rs 2,836 million in the previous year. Other expenses declined 2.3 percent to Rs 1,470 million from Rs 1,505 million. Finance costs increased 7.3 percent in FY-17 to Rs 2,239 million from Rs 2,087 million.

    Company speak:

    Goel, said, “Revenue growth in the current fiscal is largely going to be a function of subscriber additions and Phase 4 of digitisation should have a material role to play in that. The proposed amalgamation (with Videocon d2h) will further help create scale in the highly-fragmented TV distribution landscape in India while creating significant synergies through the combination.”

    On technological developments, Goel, revealed, “We understand that digital will be an important part of our growth in the future and we are excited about our portfolio of products lined up for launch in the coming quarters. Dish TV’s new HTML 5 based middleware with a card less box and a new chip set is already in advanced stages of testing and would hit the market soon.”

    DTH services will be subject to 18 percent GST rate as soon as the new indirect tax regime is implemented in the country. On the new GST regime, Goel said, “What should be significant in addition to our ability to pass on the uniform tax to subscribers would be the ease of doing day-to-day business and the associated savings in administration, litigation as well as compliance costs that should result from a simpler tax regime. Unlike the current Entertainment Tax and VAT regime, where different rules are used to determine tax in different regions, GST would be a single tax that should be practical and convenient to pass-on to the consumer.”

  • COMMENT: KNIVES, ARNAB, & THE OLD GUARD OF ENGLISH NEWS

    COMMENT: KNIVES, ARNAB, & THE OLD GUARD OF ENGLISH NEWS

    MUMBAI: The knives are out. The blades are being flashed around. And those involved in the street fight are drawing blood and bleeding as well. Only difference is that the street fighters are not the ruffian kind, rather they are gents who you watch on the TV screen or dressed up to the T in well pressed suits in boardrooms.

    What has got these reasonably well-behaved folks from the English news channel space all het up?

    Well, a possible shakeup in the pecking order courtesy a newcomer who likes a round – some say bouts – of fisticuffs – both on air and in the marketplace. Team Republic TV led by editor-owner Arnab Goswami is clear that it wants to own the English new genre – or create a new one combining both Hindi and English – by hook or by crook. After all, all’s fair in love and business isn’t it?

    So far he and his CEO Vikas Khanchandani have used tricks which older players have resorted to in the past – multiple LCN distribution on cable TV networks and allegedly pinching content which was recorded when he was in another channel’s employment.

    The courts will decide whether Arnab and team are thieves or not; we are not insinuating anything. The Telecom Regulatory Authority of India will clean up the multiple LCN mess by coming down hard on the errant distribution platform owners who have fallen prey to the smell of money – lots of it.

    But the affair Republic TV has thrown up a lot of deeper issues which could be thought about.

    When all members of a gymkhana or club have agreed upon a code of conduct, and a new entrant does not adhere to it, then should he not be told to fall in line when the infringement is brought to the establishment’s chairperson’s notice? Could the chairperson give the older members a patient hearing and heed what they have to say?

    Older players are an aggrieved lot. Yes, they admit that they have been bad boys in the past. But then they have mended their way, signed a truce and decided to follow the straight and narrow path. Should their old behavior be brought up to excuse that of the new entrant?

    And when they decide to protest by not coming to the club, should they be further threatened that they will be banned for longer if they do continue with their picketing?

    Of course the chairperson is BARC; the policeman/security is TRAI and the members are the NBA. No second guesses for who the new entrant is – Republic TV.

    Would BARC have responded the same way had it been the general entertainment channels which would have raised a hue and cry? Remember what happened to TAM!) After all the entertainment broadcasters contribute about four to five times more to BARC’s purse then do the news channels.

    Could broadcasting licence issuance by the ministry of information and broadcasting be linked to well-behaved and well-accepted distribution practices? If some one does not adhere to them, could the licence be suspended?

    Should news channels be measured alongside entertainment channels? This modus operandi has forced them to resort to entertainment or outshout-and-out-abuse-your-guest kind of programming (read entertainment again) which seems to appeal to TV soap viewers wanting to have big names of society and public life being squashed like flies on TV. Some have called this the dumbing down or bimbo-isation of news television.

    Is there a need for a new viewership currency or data points – which are more specific to the news genre – other than what BARC churns out? Could media agencies and brands resort to qualitative checks of content before signing cheques for ads on TV news channels? The most watched read/watched genre of content on the internet begins with a P. Do all major advertisers place their consumer messaging in that environment?

    Could distribution platforms have stricter penalties if they fall for green dollars, violating codes set up by regulators? The DTH guys would not dare to go for multiple LCN placement because what they do immediately comes to the public’s and regulator’s eyes – they are accountable for their quality of service. Fear of punishment can be a big deterrent.

    From an editorial perspective, questions are being asked as to how far will Arnab go? And then will the other channels show restraint or will they beat the same path? So far, it appears that some of them played follow-the- newcomer on the multiple LCN issue. Of course, they all did a volte face when the policeman/security guard waved around his night stick.

    Whatever be the case, it is quite sure that the NBA English news members will kiss and make up with BARC, the TRAI and each other. Sooner then later. (BARC and NBA are scheduled to meet today to pencil out points that will help them resolve the crisis.)

    Who knows Arnab may also find some sense in the NBA and its code of conduct and eat his own words and also house his channel under its protective roof? There was a time when another bespectacled news journalist was labelled the villain of TV news; today he is part of the establishment.

    After all, they all need each other. This is despite some media blogs and websites which have sketched the industry’s execs as shaking hands while holding a dagger behind each others’ backs.

    Industry old timers are betting that ratings released after week 22 will give a true reflection of what’s going on with English news TV viewership. The three to four weeks’ data prior to that is simply something to be kept aside as an aberration as it will continue to show Republic TV as the numero uno. After that it could well go into a free fall and the older players will continue with their leadership position, is their prediction.

    Republic TV executives are clucking that this is wishful thinking. Indian viewers have been waiting for the Arnab school of journalism like the Jews did for manna from heaven in the good old Bible, is what they have voiced. And that their channel will continue to top the charts for the foreseeable future.

    Only time will tell which prediction turns out be true.

    Until then, we will keep channel surfing with hope in our hearts that we will get to watch some real news.

  • Under GST, taxes on cable, DTH & entertainment services to come down

    NEW DELHI: Taxation on entertainment, cable and DTH services shall come down under the Goods and Services Tax regime as the entertainment tax levied by states has been subsumed in the GST, the Indian government said today.

    The Finance Ministry in a statement said services by way of admission to entertainment events or cinematography films in cinema theatres will attract 28 per cent GST with effect from July 1. Currently, states impose entertainment tax of up to 100 per cent in respect of exhibition of cinematography films in theatres/cinema halls.

    The GST Council has finalized 18 per cent tax rate on cable TV and DTH services.
    Currently, these services attract an entertainment tax in states in the range of 10-30 per cent over and above the service tax levy of 15 per cent.

    Under the GST regime, hardware equipment for both radio and television transmission and reception is expected to rise.
    The rates on services by way of admission to entertainment events or cinematography films in cinema theatres is 28 per cent under the GST as compared to some states which have been charging as high as 100 per cent until now.

    Thus, taxes on entertainments and amusements (covered by the erstwhile entry 62 of State List of the Constitution) have been subsumed under GST except to the extent of taxes on entertainments and amusements levied by a panchayat (village administration) or a municipality.

    The rate of GST approved by GST Council on access to circus, theatre, Indian classical dance including folk dance and drama is 18 per cent ad valorem. Further, the GST Council has approved an exemption up to a consideration for admission of Rs 250 per person. These services currently attract entertainment tax levied by the States.

    Thus, entertainment services will be lower under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services. Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods & inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs. Thus, while GST is a value added tax, entertainment tax, presently levied by the States is like a turnover tax.

    Transmission and reception apparatus for both radio and television have been placed in the top category of 28 per cent of the four slabs of the GST. However, the rates may stabilize as taxes levied by states are subsumed in GST.

    Other items coming under the 28 per cent slab are: single loudspeakers, mounted in their enclosures, Audio-frequency electric amplifiers, Electric sound amplifier sets, Parts; Sound recording or reproducing apparatus; and Video recording or reproducing apparatus, whether or not incorporating a video tuner.

    Transmission equipment for radio or TV broadcasting reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders also come under this slab.

    Monitors and projectors, not incorporating television reception apparatus, reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus also fall in this category.

    Meanwhile, BMR Advisors have said that the information technology sector needs to brace for increase in rates of tax under GST. However, effective planning of credits including on transition stock may aid the sector in mitigating this impact.

    In information technology, both imported and domestically produced mobile phones come in the 12 per cent slab.

    Shrink wrapped software product (on media) will attract tax rate of 18 per cent, as will Laptops, desktops, peripherals, parts, etc. Monitors and projectors (capable of connecting to ADP) will attract a rate of 28 per cent, while the majority of networking products will attract 18 per cent.

    Temporary transfer or permitting the use or enjoyment of any Intellectual Property will attract a GST of 12 per cent.
    In services, software services, that is development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software will attract 198 PER cent GST while Electronic supply of software will attract a tax of 12 per cent.

  • Jio Fiber & Airtel gear up for broadband plans

    MUMBAI: Reliance Jio is reportedly offering a minimum of 100Mbps for the home broadband consumers, and the plans are expected to be affordable even as Airtel introduced 250 GB free broadband data plan.

    The commercial roll out of Jio’s Fiber to the Home (FTTH) broadband service may happen in June 2017, according to a previous report in Teleanalysis.

    Reliance Jio’s Fiber Preview offer has been rolled out in some areas of Delhi-NCR, Mumbai, Ahmedabad, Surat, Jamnagar, and Vadodara. The service is set for launch in other cities in a phased format.

    In September 2016, some users had discussed how the testing had begun in select residential colonies in the city of Chennai.

    Meanwhile, Airtel has introduced 250 GB free broadband data plan for postpaid customers ahead of the Jio fibre launch.

    Airtel has come up with a promotional offer that gives 5 GB of additional data every month. The company has announced its myHOME offer which is valid for each postpaid connection and digital TV service from 1 July. As per details on the site, the customer will not incur any charges for the extra data given under this offer.

    A user can bundle up to 25 postpaid connections and 25 DTH connections with the broadband service which accounts to 250 GB of additional broadband data per month.

  • ISRO launches into space GSAT-9 & India’s S. Asian space diplomacy

    MUMBAI: Prime Minister Modi’s Rs 450 crore (Rs. 4,500 million) Asian space diplomacy took flight today with the launch of South Asia Satellite GSAT-9 by Indian Space and Research Organization (ISRO) on Friday. Pakistan is not participating in this initiative.

    The satellite, when it finally gets commissioned, would provide services specific to individual countries as per their own needs and priorities as also common services. Each country would be allocated one transponder each. The South Asian nations that would benefit from this Indian initiative include Afghanistan, Bangladesh, Bhutan, Maldives and Nepal.     

    The South Asia Satellite has 12-KU band transponders, which India’s neighbors can utilize to increase communications. However, the on-ground infrastructure for the usage of satellite capacity will have to be built by each respective country, though, according to an official government statement, India is willing to help them do that too.   

    According to a report in the Economic Times newspaper, each of the participating South Asian nation could benefit up to USD 1.5 billion over the 12-year lifespan of GSAT-9.

    The satellite will facilitate DTH television, VSAT links, tele-education, telemedicine and disaster management support. It will provide critical communication links in times of disasters such as earthquakes, cyclones, floods, and tsunamis.

    Congratulating ISRO for the development and launch of the satellite, PM Modi, while conferring with the heads of participating nations via video conference, said, “As governments, our most important task is to secure growth, development and peace for our people and communities. And, I am convinced that when we join hands and mutually share the fruits of knowledge, technology and growth, we can speed up our development and prosperity.” 

    The vehicle is designed to inject 2- 2.5 ton class of satellites into space. The overall length of GSLV-F09 is 49.1 m. GSLV-F09 was launched on May 5, 2017 from the Second Launch Pad (SLP) at Satish Dhawan Space Centre SHAR (SDSC SHAR), Sriharikota, the space port of India.

    GSLV-F09 vehicle configuration, including the CUS, is similar to the ones successfully flown during the previous three missions — GSLV-D5, D6 and F05 — in January 2014, August 2015 and September 2016, respectively. GSLV-D5 and D6 successfully placed two communication satellites, GSAT-14 and GSAT-6, while GSLV-F05 placed India’s weather satellite INSAT-3DR in the intended GTOs.
    Also Read:

    ISRO’s ‘South Asia Satellite’ to carry 12 ku-band transponders

    ISRO world record in 104-satellite launches on a single flight

     

  • DTH & cable gap being tapped by FTAs like FreeDish, DTT to reach 60 cities: Naidu

    MUMBAI: Minister for Information & Broadcasting M Venkaiah Naidu has said the Government’s initiatives like Make in India, Skill India and Digital India campaigns were clearly positive signals for new transformation including GST which would prove to be a game-changer for Indian Media and Entertainment sector, especially the Broadcasting sector. The Minister stated this while inaugurating the Two Day seminar organized by Telecom Authority of India on the occasion of completing two decades here today.

    Elaborating further, Naidu mentioned that the broadcasting sector in the country was at the threshold of entering into new era of digital broadcasting, which would open lots of opportunities to use latest technological innovations to not only enhance reach but also enhance the quality of the reach. The revival of radio, the digitisation of cable and the free to air DTH audience growth point to the latent demand for broadcasting in the Indian market at a time when broadcasting in advanced markets in the west is losing out significant space to digital on-demand media platforms. The push towards Digital Terrestrial Television (DTT) thus comes at a critical juncture as Doordarshan, the public broadcaster in India looks to expand its DTT footprint from the current 16 cities to another 44. The Minister acknowledged and appreciated TRAI’s recent recommendation on time bound implementation of DTT in India.

    The Minister stated that the government was committed to provide an enabling environment through various policies for the further growth of the Media and Entertainment sector. The Digital India campaign along with the Make in India campaign would strengthen the industries such as video streaming, online music services and gaming in India taking advantage of the increased internet penetration. The Minister also mentioned that indigenous manufacturing of various digital broadcasting equipment had taken roots under the initiative of Make in India and that. He urged all the stake holders to encourage and promote indigenous development of equipments in the country.

    Naidu stated that the gap between the premium Direct To Home (DTH) market and the low quality cable market, lay an opportunity that was currently being tapped by the free to air (FTA) DTH platforms like Doordarshan’s FreeDish. With transparent online auctions allowing for market based discovery of the value of these free to air channels, there was an audience revolution of sorts with rural audiences getting on the FTA DTH bandwagon and contributing for enhanced number of entertainment channels.

    Speaking on the role of the Telecom Regulatory Authority of India, the Minister said that the transition to Digital Broadcasting had posed several challenges and the role of TRAI was extremely crucial in this regard for overcoming any hurdles that may put the transition to newer technologies on a slow path. Naidu congratulated TRAI for completing two decades of regulatory services to the nation, which had contributed immensely to the growth of Telecom and Broadcasting sectors while keeping consumer protection in mind.

  • BARC India to halt analogue measurement from July, up overall data collection

    NEW DELHI: India’s audience measurement company Broadcast Audience Research Council of India (BARC India) will stop reporting on analogue TV homes’ data from 1 July 2017 with the exception of one State and will add homes with new boxes to augment data collection.

    “We will also stop reporting all analogue homes across the country with the exception of Tamil Nadu from 1July 2017,” BARC India CEO Partho Dasgupta told indiantelevision.com, adding that hopefully the South Indian state too would soon come within the ambit of normal measurement process.

    The move to stop collecting and make available analogue home audience data seems to be aimed at nudging distribution platforms to stop analogue signals and a big hint to TV channels that in a digitized India it was best to go the digital way.

    Dasgupta, who was interacting with indiantelevision.com in an exclusive interview on the occasion of BARC India’s second anniversary, while dwelling on temporary hiccups, said, “With the current digitization mandate for Tamil Nadu, hopefully, analoguereporting will also stop soon there too. All this may lead to some interim flux, but in the long term will improve robustness of our viewership data.”

    The Tamil Nadu-Government run Arasu Cable TV Corporation (TACTV) was granted provisional digital license by the Ministry of Information and Broadcasting (MIB) in April 2017 to operate as a multi-system operator in the state. The late clearance was based on a rider that the MSO switches off analogue signals in the entire state within three months.

    As part of a wide-ranging interview, Dasgupta informed that BARC India’s annual exercise, which is also part of a government mandate, will also see new meter homes (called BAR-o-meters) added this calendar year.

    “This year we will see our (pan-India measurement) panel expanding from 20,000 to 30,000 reporting homes,” Dasgupta said, adding, “Combined with the newly added homes, we will also be seeding some new homes as part of our regular churn policy.”

    The government while giving clearance to BARC India, a joint venture amongst IBF, AAAI and the Indian Society of Advertisers, had made it clear that the number of homes used for data collection should reach 50,000 within a five-year period. BARC India’s predecessor was TAM India, a joint venture between global companies Nielsen and WPP-owned Kantar Media.

    Confirming an earlier indiantelevision.com new story on BARC exploring avenues to collaborate with Indian DTH platforms for return path data (RPD) to augment data collection, Dasgupta said, “We are trying to innovate (with) panel expansion by tying up directly with key DTH and digital cable operators to enable return path (audience) data.”       

    Without disclosing a time-frame for such data-boosting tie-ups with DTH ops, Dasgupta explained, “Our tie-up with DTH operators and MSOs for RPD is an attempt (to bring about more robustness). This will not only increase the number of sample panel homes, but will also make infiltration efforts ineffective. We will innovate more on the meter technology front.”

    Stay tuned for the full interview of Dasgupta, which will be on air soon.

    ALSO READ:

    BARC India in talks with DTH ops, MSOs for RPD to boost robustness

    Arasu gets provisional MSO licence subject to analogue switch-off in three months

    BARC EKAM: Learning online behaviour & ROI from specific campaigns will be easier, industry says

     

  • After Star, Tata Sky all set to challenge TRAI tariff: Harit Nagpal

    MUMBAI / NEW DELHI: Finally, after a wait of around seven months after it was first notified and then re-notified on 3 March, the tariff order for digital addressable system has come into effect today – but implementation may take some time after overcoming some stumbling blocks.

    Even as the petition filed by Star India and Vijay TV on the ground that the Telecom Regulatory Authority of India cannot regulate content which falls under the Copyright Act 1957 is pending hearing in Madras High Court, direct-to-home platforms are expected to pose a major challenge to its implementation.

    Primarily, the problem occurs because all stakeholders will have to abide by the rates fixed by the broadcaster according to the new tariff order.

    The DTH players are agitated not only with the fact that they pay over 85% of the service tax and entertainment tax in the digitised universe, but the fact that their liberty to make their own bouquets may be taken away with the broadcasters having the say in fixing rates for individual channels.

    Tata Sky CEO Harit Nagpal has confirmed to indiantelevision.com that it is moving the Delhi High Court against TRAI on the tariff order. As it is one of the largest among the six private DTH operators, the approximately Rs 50-billion Tata Sky may be joined by other players.

    Tata Sky had designed packages as per genre so as to make it smoother for the customer but may now have to change these bouquets/bundles as the new order directs the DTH operators to offer channels on an à la carte basis and then link them to the bouquet price.

    There are several conditions in the new order as to how the channels could be priced in a bunch, and individually, Nagpal said. If one aspires that consumers are going to use an app and order a channel that may not take place in the Rs 58000-crore television industry.

    Consumers in India would expect the salesperson to answer their specific queries before they subscribe. Nagpal said it costs Tata Sky around Rs 200 to successfully close one subscription as a call centre call costs Rs 7 a minute. Tata Sky’s margin is Rs 60,which is 20 per cent of Rs 300 — the average revenue from each subscriber. Tata Sky apprehends going out of business taking into consideration the cost of handling calls, and the lowly profits.

    The platform which claims around 12.08 million active subscribers has explained all points in detail to TRAI, but to no avail. The new order has been notified, and it’s too complicated to enlist channel pricing on the website as expected, Nagpal said.

    Nagpal said, ideally, the purpose of the government should be to achieve absolute digitisation and transparency by streamlining the ties between the MSOs and LCOs.

    The cable operators have in so many years failed to offer tiered packages, even at the genre level. With the aim of making the category fully transparent, it needs to switch to prepaid so as to make sure the MSO acts similar to DTH operators that collect money in advance.

    At the lowly margin of 20%, the Tata Sky executive said it was not encouraged to innovate in terms of providing Interactive services, HD, DVR and on-demand services, etc. He said the tariff order was not implementable, and this would be proved before the Delhi High Court in the case being filed this week.

    The new carriage fee structure that has been proposed made channels serving smaller group or communities non-profitable. The Tata Sky CEO said he failed to comprehend why a channel would pay a fee to be carried on a platform.

    Owing to its transparency and qualified processes, the company that is best equipped to implement the new TRAI order was Tata Sky, Nagpal believed, but added: “If Tata Sky is unable to implement it, none can.”

    India is one of the cheapest market for cable television entertainment even when one compares it with similar per capita Asian nations such as the Philippines and Indonesia US$25 per month, whereas consumers in India pay around US$5-6.

    TRAI had first come out with a draft tariff order in October 2016 but was embroiled in the case in Madras High Court which had initially directed status quo. Later, TRAI had issued the orders on 3 March after getting the green signal from the apex court even as the broadcasters’ case was pending in the High Court.

    Apart from the Tariff order which had originally been issued on 10 October last year, the regulator also issued the DAS Interconnect Regulations which had been issued on 14 October last year, and the Standards of Quality of Service and Consumer Protection (Digital Addressable Systems) Regulations which had been issued on 10 October last year.

    Also Read ;

    Decks cleared for TRAI tariff order implementation as HC declines stay (updated)

    No advancing of Star India hearing in TRAI tariff case: SC

    Upload channel capacity & RIO immediately, AIDCF urges MSOs

    Active DTH subscriber growth subdued in Oct-Dec’16 quarter