ITV

Tag: DTH

  • No plans for new DD transmitters except some in border areas: Rathore

    No plans for new DD transmitters except some in border areas: Rathore

    NEW DELHI: The Government has no plans for new Doordarshan transmitters for expansion of terrestrial coverage except a few in border areas, the Parliament was told by Minister of State for Information and Broadcasting Rajyavardhan Rathore.

     

    Doordarshan has 67 kendras (studio centres) and 1,416 transmitters in the country and therefore there is no need for expansion in view of multi channel coverage having been provided to all the areas uncovered by terrestrial transmission (including those located in rural/ remote/ backward/tribal regions) along with rest of the country through DD’s free-to-air DTH service Freedish.

     

    Uttar Pradesh has the highest number of seven studios, followed by Jammu and Kashmir with four. Although other states have a maximum of two studios, each one of them widens its reach through high power transmitters, lower low power transmitters; very low power transmitters and transposers.

     

    Rathore also told the Parliament that all areas uncovered by terrestrial transmission along with the rest of the country have been provided with multi channel TV coverage through Freedish. DTH signals can be received anywhere in the country with the help of small sized dish receive units and require only a one-time payment for purchasing the units.

     

    The four new TV transmitter projects in Jammu and Kashmir presently under implementation are High Power Transmitters (HPTs), Rajouri (DD1 & DD News); HPT, Green Ridge; HPT, Himbotingla; and HPT Natha Top (Patnitop). The Timeline for transmitters at Rajouri is 2016 and for other locations is 2017.

  • MIB reminds broadcasters & MSOs of DAS Phase III signal transmission laws

    MIB reminds broadcasters & MSOs of DAS Phase III signal transmission laws

    NEW DELHI: After the Telecom Regulatory Authority of India (TRAI) firmly ruled out any extension of Phase III of digital addressable systems (DAS), the Information and Broadcasting Ministry today told broadcasters that “it is obligatory to stop TV signals to multi system operators (MSOs) and local cable operators (LCOs) who are not registered with the Ministry for operation in DAS notified areas.”

     

    In a letter sent to all broadcasters and MSOs, Ministry joint secretary (broadcasting) R Jaya said, “All the broadcasters are requested to ensure to stop TV signals to those MSOs who are not registered with this Ministry for operation in DAS notified areas under Phase Ill and/or those who are not transmitting digitally encrypted TV signals in phase Ill areas after the cut-off date of 31 December, 2015.”

     

    The letter aimed at drawing the attention of all broadcasters is drawn to certain rules, regulations and guidelines related to transmission of television signals in connection with approaching cut-off date for Phase Ill of cable digitisation in the country.

     

    The letter said under Section 4A of the Cable Television Network (Regulation) Act 1995, it is obligatory for every cable operator to transmit or re-transmit programmes of any channel in an encrypted form through a digital addressable system with effect from the date as may be specified in the notification.

     

    Under para 5.6 of the Policy Guidelines for downlinking of Television Channels, the company will provide satellite TV channel signal reception decoders only to MSOs/cable operators registered under the Act or to a direct-to-home operator registered under the DTH guidelines issued by the Government or to an Internet Protocol Television Service (IPTV) provider duly permitted under their existing Telecom license or authorised by the Telecommunications Department or to Headend In The Sky (HITS) operator duly permitted under the policy guidelines for HITS operators issued by I&B Ministry to provide such service.

     

    Furthermore, the letter said under sub-regulation 3(2) (Chapter II- Interconnection) of Interconnect (Digital Addressable System) Regulations 2012, every broadcaster will provide signals of its TV channels to MSOs registered under rule 11 of the Cable Television Networks Rules 1994, making request for the same.

  • JWT bags creative duties of Vietnam’s first international DTH company

    JWT bags creative duties of Vietnam’s first international DTH company

    MUMBAI: Vietnam’s satellite television operator VSTV/K+ has named J. Walter Thompson as its creative agency of record in Vietnam after a recently concluded multi-agency pitch.

     

    VSTV/K+ is a joint venture between state-owned VTV and Canal+ Overseas, a wholly-owned subsidiary of Canal+ Group of France.

     

    A total of three agencies were invited for this pitch, which was overseen by VSTV/K+ team from Vietnam and representatives from Canal+ Overseas.

     

    K+ entered the Vietnam market in 2009 as a DTH pioneer with exclusive English Premier League content. Since then it has garnered a subscriber base of more than 800,000.

     

    By using direct to home and advanced technologies, K+ brings quality national level satellite TV service to Vietnamese households via SD and HD set-top-boxes at competitive prices, offering 4 K+ premium and exclusive channels, up to 130 SD channels and 10 HD channels across genres: sports, movies, general entertainment, news, music, and documentaries.

     

    VSTV/K+ COO and CFO Frederic Berardi said, “Whilst K+ has made a name in the Vietnam television space, our brand now needs to take the high ground as an entertainment hub for Vietnamese homes via exclusive, premium content. JWT demonstrated to us strong understanding of the big picture, the road map and they combined that with an entrepreneurial mentality, so essential as we seek to drive change in a fast evolving market.”

     

    As part of the restage program, K+ has been enriching the content on its four exclusive channels with key investments in 2015. This includes strategic partnerships with leading film studios, BHD (Vietnam) and CJ (Korea) to beam latest Vietnamese movies into Vietnamese homes, only few months after their release in cinema. Another one is the exclusive acquisition of ATP World Tour series for the next three seasons (2016/2017/2018) which has just been announced.

     

    JWT Vietnam CEO Saby Mishra, who led the pitch effort, added, “For J. Walter Thompson this is a real honor to work with the country’s premier broadcasting venture. We are excited about the opportunity to work with the VSTV/K+ team and pioneer a true premiumization inflection-point in a broadcast market where free-to-air analogue terrestrial has been the norm for long.”

     

    “The challenges of digital switchover will however vary significantly across ASEAN region, depending on market conditions. In case of Vietnam, its 23 million TV households in a population of 90 million, is showing an appetite for quality content so we believe that there is now headroom for creating a mass-premium segment via exclusive content, smart value propositions, branding and creativity,” Mishra said.

  • Videocon d2h armed with adequate STBs ahead of DAS III deadline

    Videocon d2h armed with adequate STBs ahead of DAS III deadline

    MUMBAI: Indian direct to home (DTH) operator Videocon d2h says it is fully geared up for Digital Addressable Systems (DAS) phase III, the deadline for which is 31 December, 2015. 

     

    The company expects Phase III to be 50 million TV household in terms of size.

     

    The Telecom Regulatory Authority of India (TRAI) in its recent communication expressed satisfaction at the progress of the seeding of set-top boxes (STBs) in Phase III areas. TRAI has also advised consumers of urban areas who are still receiving cable TV services without STBs to avail and install STBs before the cut-off date in order to receive uninterrupted TV/services. It has reaffirmed its commitment to meet the deadline.  

     

    It is anticipated that there will be a huge demand for STBs for the Digitisation phase III, and Videocon d2h STBs are available in the markets. TRAI has been taking steps to create awareness among consumers and stakeholders by holding workshops on the implementation of DAS and consumer outreach programmes.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We welcome the digitisation mandate by Government wholeheartedly and will continue to support this initiative. The latest communication by Government in reaffirming its commitment is encouraging. This will ensure world class services to end consumer and create a level playing field between DTH and cable.”

     

    Videocon d2h CEO Anil Khera added, “Consumers who are on analog cable mode can subscribe to a Videocon d2h Digital Set Top Box to access uninterrupted services before digitisation is implemented. Videocon d2h has ample STBs to cater to demand of the digitisation towns. Consumers can subscribe to Videocon d2h to avoid a black out of the analog cable services and enjoy the wide range of channels and services provided.”

  • Q2-2016: Indian DTH players replicate improved performance of previous quarters

    Q2-2016: Indian DTH players replicate improved performance of previous quarters

    Over the past two quarters, the DTH segment of the television carriage industry has posted improved performances as has been mentioned by Indiantelevision.com for Q4-2015 and Q1-2016.

    The industry seems to have reached an inflection point in Q4-2015, with three players that have a combined market share of about 62 per cent posting improved results. The biggest player among them in terms of revenue as well as number of subscribers, Dish TV with about 27 per cent market share even reported a consolidated profit after tax (PAT) of Rs 34.94 crore in Q4-2015, a figure that helped wipe out the losses reported by the company for the previous three quarters. Dish TV reported consolidated PAT of of Rs 3.14 crore for FY-2015.

    As a matter of fact, even Airtel DTH services reported a positive EBIT of Rs 8.1 crore for Q4-2015, as compared to a negative EBIT of Rs 36 crore in Q3-2015 and a negative EBIT of Rs 67.6 crore in Q2-2015. The three players have now reported improved performances for the quarter ended 30 September, 2015 (Q2-2016, current quarter).

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

    (2) This paper covers only three of the seven DTH service providers in India (as had the previous two papers) since the other four– Reliance Digital TV, Sun Direct (about 97 lakh subscribers as on 31 March, 2015), Tata Sky and DD Free Dish are not listed directly on the bourses and their financial numbers are not available, unless the principals of these companies/segments chose to reveal them. The three players – Airtel DTH, Dish TV and Videocon d2h have already been covered in our earlier reports mentioned above.

    (3) Some of the three players mention their financial as well as subscription numbers in millions in their financial reports/investor presentations and other documents that they make available publically. The financial numbers have been converted to Rs crore to an approximation of a single decimal place, though percentages have been mentioned to the second decimal place approximation.

    (4) There could be some ambiguity about the market share of the three players. If one were to go by the latest numbers released by the Telecom Regulatory Authority of India (TRAI) in November 2015 for June 2015. TRAI’s indicator report says that the number of registered DTH subscribers as on 30 June, 2015 was 787.4 lakh. The combined subscription numbers of the three players as on the same day as reported by them individually was 343.12 lakh and hence the market share of these players works out to 45.58 per cent. However, TRAI’s report also says that the number of active DTH subscribers as on 30 June, 2015 was 397.4 lakh. Based on the second TRAI number, the combined total subscribe market share of the three players in this paper works out to 86.34 per cent. The figures of 27 percent and 62 per cent have been taken from Dish TV’s estimates.

    (5) Videocon d2h EBIDTA numbers are adjusted – Q4-2015 Adjusted EBIDTA is before accounting for one off securities issue expenses of Rs 10.543 crore and Employee Share based Compensations cost of Rs. 2.974 crore towards provision of ESOP plan of 2014; Q1-2016 and Q2-2016 Adjusted EBITDA is before accounting for Employee Share based Compensations cost of Rs. 2.944 crore towards provision of ESOP plan of 2014

    Please refer to the graphs below. Panel A, B and C and D show the Q2-2015, Q1-2016 and Q2-2016 combined performances of the three DTH operators in this report and then in alphabetical order- Airtel DTH, Dish TV and Videocon d2h respectively. Panel E shows the ARPU value trends and Panel F shows the Monthly Subscriber Churn of the three players over 6 consecutive quarters starting Q1-2015 until Q2-2016.

    Please refer to Panel A in the graphs below. The combined revenues of the three players in the current quarter grew 16.20 per cent year on year (YoY) to Rs 2149.32 crore as compared to Rs 1849.60 crore and grew 3.12 per cent quarter on quarter (QoQ) as compared to Rs 2084.28 crore. EBIDTA increased 47.96 per cent YoY in Q2-2016 to Rs 680.30 crore (31.65 per cent margin) as compared to Rs 459.8 crore (24.86 per cent margin) and grew 1.90 per cent QoQ as compared to Rs 667.6 crore (31.65 per cent margin). Hence, EBIDTA margin declined slightly in the current quarter as compared to the immediate trailing quarter. Reported Combined Subscription numbers in Q2-2016 grew 12.77 per cent YoY to 351.16 lakh as compared to 311.4 lakh and increased 2.34 per cent QoQ as compared to 343.12 lakh.

    All the three DTH operators reported growth in revenue and subscription numbers, both YoY and QoQ. Dish TV and Videocon d2h reported growth in YoY and QoQ EBIDTA, while Airtel DTH reported a YoY increase, but a QoQ drop in EBIDTA and EBIT for Q2-2016. In terms of subscription numbers as well as revenue, Dish TV is the biggest player among the three. While Videocon d2h has a slight edge in terms of subscription numbers over Airtel DTH, the latter has a slight edge over Videocon d2h in terms of revenue.

    The average revenue per customer (ARPU) in the case of Airtel DTH increased QoQ to Rs 224 from Rs 222, it was flat in the case of Videocon d2h at Rs 205 and declined to Rs 171 in Q2-2016 from Rs 173 in the immediate trailing quarter in the case of Dish TV.

    During the six consecutive quarter period starting Q1-2015 until the current quarter, ARPUs of all the three DTH players show linear increasing trends. Monthly Subscriber Churn also seems to be increasing in case of all the three players as is obvious from the linear broken trend lines in Panel F. As a matter of fact the Monthly Subscriber Churn reported by all the three players in the current quarter – Q2-2016 was the highest during a period spread over six consecutive quarters.

    At the cost of repeating some of what has been mentioned above, let us see how these players have performed in Q2-2016.

    Airtel DTH

    Airtel DTH is a small segment of Indian telecom major Bharti Airtel Limited and its revenues constitute around four per cent of its parent company’s revenues and its EBIDTA is contributes just three per cent to overall EBIDTA. Capex investment however is in the seven per cent region of Bharti Airtel’s overall capex investments.

    Please refer to Panel B in the graphs above. Airtel’s DTH segment reported 12.85 per cent YoY growth in its revenue for the current quarter at Rs 706.8 crore as compared to the Rs 623.6 crore in Q2-2015. QoQ, the segment’s revenue grew 3.21 per cent as compared to Rs 684.8 crore.

    EBIDTA increased 53.24 per cent YoY to Rs 234.3 crore (33.15 per cent margin) as compared to the Rs 152.9 crore (24.41 per cent margin), but was 2.70 basis points lower than the Rs 240.8 crore (35.16 per cent margin).

    Airtel DTH segment reported a positive EBIT of Rs 17 crore (2.41 per cent margin) in the current quarter as compared to a negative EBIT of Rs 67.7 crore in the corresponding year ago quarter. EBIT in the current quarter, however was less than half (declined by 59.04 per cent) as compared to the Rs 41.5 crore (6.06 per cent margin) in the immediate trailing quarter.

    The company reported a 10.86 per cent YoY growth in its subscriber base to 105.76 lakh in Q2-2016 as compared to the 95.40 lakh in the corresponding year ago quarter and a 1.58 per cent QoQ growth from 104.12 lakh in the immediate trailing quarter. Monthly subscriber churn however increased to 1.3 per cent in the current quarter as compared to 1.1 per cent in Q2-2015 and 0.8 per cent in Q1-2016.

    The company reported a slight increase in Average Revenue per User (ARPU) in Q2-2016 in terms of Indian rupees, but a flat ARPU in terms of the US dollar at $3.5, which means that ARPU in dollar terms declined due to the rise in the price of the dollar in Indian Rupees. ARPU in Q2-2016 increased to Rs 224 as compared to the Rs 220 in Q2-2015 and the Rs 222 in Q1-2016.

    Monthly Subscriber churn in Q2-2016 at 1.3 per cent was higher than the 1.10 per cent in the corresponding year ago quarter and the 0.80 per cent in the immediate trailing quarter.

    Airtel MD and CEO India & South Asia Gopal Vittal said, “Airtel’s revenue growth in India has accelerated to 13.3 per cent in Q2 on an underlying basis, the highest in the last 12 quarters. Our smaller businesses – home broadband, DTH and our business segment all continue to perform strongly.”

    Dish TV

    This is the third consecutive quarter that Dish TV has reported growth across important financial and operational parameters including operating revenues (Total Income from operations or TIO), PAT and subscription numbers. During the previous fiscal and its last quarter (year and quarter ended 31 March, 2015, Q4-2015), the Subhash Chandra led Essel group’s Dish TV Limited turned the corner with a consolidated PAT of Rs 3.14 crore and Rs 34.94 crore (margin 4.8 per cent) respectively. The company followed this up with even better numbers in the previous quarter (Q1-2015). Dish TV was probably the first among listed DTH companies in the country in FY-2015 and Q4-2015 to report a profit after tax as opposed to the operating profits reported by a segment of the other Goliaths for whom DTH services is just another small segment or group company.

    Please refer to Panel C in the graphs above. For the current quarter ended 30 September, 2015 (Q2-2015), Dish TV has reported Operating revenue of Rs 752.42 crore, hence registering a 15.77 per cent YoY growth as compared to Q2-2015’s number of Rs 649.90 crore and a 2.14 per cent QoQ growth as compared to Rs 736.68 crore.

    The company reported PAT of Rs 86.96 crore (11.56 per cent margin) for the current quarter as compared to a loss of Rs 14.2 crore in the corresponding year ago quarter and a whopping 60.41 per cent growth in profit as compared to the Rs 54.21 crore (7.36 per cent margin) in the previous quarter.

    EBITDA in the current quarter increased 57.50 per cent YoY to Rs 255 crore (33.89 per cent margin) as compared to Rs 161.9 crore (24.91 per cent margin) and increased 7.69 per cent QoQ as compared to Rs 236.8 crore (32.14 per cent margin).

    The company’s subscriber numbers in Q2-2016 increased by 3.38 lakh to touch a subscriber base of 137 lakh as compared to the 133 lakh subscribers reported at the end of the previous quarter (Q1-2016). Monthly Subscriber Churn increased to 0.8 per cent after remaining flat for the previous five consecutive quarters at 0.7 per cent.

    Dish TV reported a YoY growth in Average Revenue per User to Rs 171 as compared to the Rs 166, but a QoQ decline from Rs 173 in the previous quarter.

    Dish TV chairman Subhash Chandra said, “Dish TV further reinforced its leadership position during the quarter. The company, while being at the forefront of the DTH industry in India, reached out to television viewers with innovative products that promise to enhance their television viewing experience. Dish TV’s improving financial strength coupled with its passion to be ahead of the curve, should be an advantage to further enhance its presence in the vast and still untapped analogue and free-to-air television markets in the country.”

    Videocon d2h

    Videocon d2h reported sales growth in both subscription revenue and revenue from operations for the current quarter. Subscription revenue increased 24.63 per cent YoY to Rs 629 crore as compared to Rs 504.7 crore, and increased 4.67 per cent QoQ as compared to Rs 599.61 crore.

    Please refer to Panel D in the graph above. Total revenue increased 20.35 per cent YoY to Rs 690.1 crore as compared to Rs 573.40 crore and increased 4.12 per cent QoQ as compared to Rs 662.83 crore.

    The company reported lower loss in Q2-2016 at Rs 24.6 crore as compared to a loss of Rs 61.4 crore in Q2-2015, but was slightly higher than the loss of Rs 24.4 crore in the immediate trailing quarter.

    Adjusted EBIDTA in the current quarter increased 31.72 per cent YoY to Rs 191 crore (27.68 per cent margin) as compared to Rs 145 crore (25.29 per cent margin) and was almost flat (increased 0.53 per cent) as compared to Rs 190 crore (28.67 per cent margin).

    The company notched up higher net subscribers at 108.4 lakh in Q2-2016 as compared to 94.6 lakh in Q2-2015 and 106.4 lakh in the immediate trailing quarter. Monthly Subscriber Churn in the current quarter at 1.19 per cent was higher than 0.85 per cent in Q2-2015 and 0.46 per cent in the immediate trailing quarter.

    The company reported higher ARPU at Rs 205 in Q2-2016 as compared to Rs 190 in Q2-2015 but was flat when compared to Rs 205 in the immediate trailing quarter.

    Videocon d2h executive chairman Saurabh Dhoot said, “I am happy to share that we have achieved EBITDA growth of 30.3 per cent in the first half of the current fiscal as against our guidance of 25 to 30 per cent growth. We are on track to deliver even stronger growth in the second half of this year, in line with the guidance shared earlier. During the quarter, we focused on enhancing our channel offering and added 14 Standard Definition and four High Definition channels. We have recently launched two proprietary services, namely d2h Hollywood HD and Darshan. With more than 500 lakh eye balls we also continue to gain traction on advertising revenue with marque advertisers coming on our platform.”

    Speaking on the near term subscriber growth outlook, Videocon d2h CEO Anil Khera said, “We estimate around 500 lakh television homes come under Phase III digitization, of which 240 to 250 lakh television homes are already on the digital platform. Thus, the target market under Phase III digitization is the remaining 250 to 260 lakh television homes that are currently on analog cable.”

    End Points

    Implementation of Phases III and IV of DAS presented a potential of about 700 to 750 lakh existing television households plus another 200 to 250 lakh new television households for the carriage industry as per industry estimates. How well each of the players in the ecosystem takes advantage of this  potential remains to be seen. The DTH players in the country are adding to their net subscription numbers, going by the combined 7.64 lakh net subscriber additions that the three players in this paper have reported for Q2-2016 as compared to the immediate trailing quarter. Reported capex investments to the extent of Rs 250 crore in the current quarter and Rs 211 crore in the previous quarter by Airtel DTH and Rs 246 crore in Q2-2016 and Rs 153 crore in Q1-2016 by Videocon d2h indicate that the DTH players are intent on gaining a large portion of this opportunity.

    An Icra Research Services paper of September 2015 on TV Distribution says that DTH players remain well positioned for tapping growth opportunities in Phase III and Phase IV markets due to inherent technology advantage and easier access to cable dark areas. Moreover, incremental investments towards the establishment of infrastructure in the rural markets and relatively high operating costs render it commercially unviable for national MSOs to enter such markets.

    The rural markets continue to remain cost sensitive; hence, MSOs and DTH players are also looking at introducing plain vanilla set top boxes (STBs) specifically for these markets to encourage subscribers to migrate. In this direction, Dish TV launched a lower priced STB under the brand name of Zing, the base pack of which is typically 20 per cent lower than a regular Dish TV STB. Amongst other measures, distributors are also evaluating channel packages with focus on regional content. The media consumption in Phase III and Phase IV markets are driven by regional content and hence such packages are expected to help distributors further expand their subscriber universe in these markets says the Icra report.

    HD channels is another opportunity that DTH players have sensed. Sensing a strong business opportunity Videocon d2h has started augmenting a new strategy early this year. With the number of HD channels set to increase in the coming years, Videocon d2h, which also manufactures STBs, will be phasing out its Standard Definition (SD) STBs over the next year or so. Videocon d2h is looking at 50 to 60 per cent acquisitions in the HD STB space.

    In early May 2015, while speaking at the Asia Pacific Video Operators Summit (APOS) held in Bali, Videocon d2h’s Khera had said, “The cost of difference between SD and HD set top boxes for us is only one and half dollar. In terms of gross adds, the market has been consistently growing and we have seen a growth of eighty to ninety lakh new additions in a year. Net additions has been a challenge, and the industry has been able to get net addition of fifty to sixty lakh. As far as the rotation churn is concerned how one retains customers and provides additional services, is a big challenge.”

    This brings forth another challenge-bandwidth allocation with a limited satellite bandwidth available. Projecting that there would be at least a hundred HD channels over the next one and a half year, Khera had then said, “All the Hindi and English general entertainment channels and movie channels will have a HD and SD feed.” That was six months ago.

    The cut-off date for DAS Phase III – 31 December, 2015 is less than a month away and for DAS IV – 31 December, 2016 just a little more than a year away. Initially the next 13 months followed by a year or two is the period required by the industry to gain some sort of maturity and have a semblance of stability. The next two to four years are going to be real chaotic and exciting times for the carriage industry. For now, the existing analogue consumers and the new television households, are the real low hanging fruits that can be plucked with relative ease. Post digitisation the game will be different, probably with a different set of unwritten rules (and most probably written rules on the path to market maturity).

  • Arun Kapoor becomes new Dish TV CEO

    Arun Kapoor becomes new Dish TV CEO

    MUMBAI: Dish TV India has informed Bonmbay Stock Exchange that upon the recommendation of the Nomination and Remuneration Committee of the Board, the Board of Directors of the Company at their meeting held on 20 November 2015inter alia, has approved the appointment of Arun Kumar Kapoor as the Chief Executive Officer of the Company with effect from November 23, 2015.

     

    Further, Kapoor, has also been nominated as a ‘Key Managerial Personnel’ of the Company under the applicable provisions of the Companies Act, 2013 and Listing Agreement. Kapoor was earlier CEO of Taj  TV, the Zeel; groups distribution business subsidiary, a post from which he resigned in April 2015.

     

    Dish TV India CMD Jawahar Goel, while welcoming Arun Kapoor on board said, “Arun  brings a  depth of  business experience that  will  be a perfect  complement to  the expertise of Dish TV in  the DTH industry. His business acumen will enhance our ability  to deliver consumer oriented services while also increasing stake holder’s value.”

     

    Kapoor, on his appointment as the CEO of Dish TV, said, “I am delighted to have the opportunity to lead Dish TV at this important stage in its journey and look forward to working with  the Dish TV team to  ensure that  the Company delivers as per its  strategic business objectives.”

     

    It may be recalled that the earlier Dish TV CEO R.C. Venkateish  or RC as he is called had resigned effective October 31, along with a number of personnel at Dish TV following a board meeting on October 27.  The meeting also saw the elevation of managing director Jawahar Goel as Dish TV chairman, and the resignation of non-executive promoter director Subhash Chandra from the board. RC shall however continue to be associated with the company in an advisory role specifically in areas relating to content, legal and regulatory affairs. He shall also continue to represent Dish TV in the DTH Association and before industry and regulatory bodies.

  • Den Snapdeal TV-Shop’s two new appointments to integrate operational capabilities

    Den Snapdeal TV-Shop’s two new appointments to integrate operational capabilities

    MUMBAI: Den Snapdeal TV-Shop (DSTS) has announced two significant appointments in the senior management team – Amarjot Brar as the Chief of Business Operations and Amit Katyal as the Head of Finance.

     

    DSTS is taking the next big leap towards scaling and reaching more homes through DTH. The two new appointments will enable the company to integrate its operational capabilities across production, distribution, supply chain, sales and customer service. While Brar will be responsible for the operational execution for the company, Katyal will be overseeing the finance operations.

     

    Brar has experience in different sectors that include telecom, digital media, outsourcing, FMCG and consulting companies, and has worked with Start-ups and steady state operations. Prior to joining DSTS, he has worked with Askme and has set up business excellence, quality and customer management across organisations like IBM, Virgin Mobile and Wipro.  

     

    “The penetration that TV shopping industry makes it a very developing space to be present in. I am excited to lead the TV-Shop operations for such a challenging & nascent market,” Brar commented on his appointment.

     

    Katyal, on the other hand, carries prolific knowledge in the finance function with over fifteen years of experience. Prior to joining DSTS, Amit served as head finance at digital media group To The New, India division.

     

    Katyal said, “I look forward to joining an industry modernising and reshaping at such great speed. I wish to continue to create value for our customers, sellers and investors.”

     

    DSTS CEO Maneesh Goel asserted, “We welcome both Amarjot and Amit in our team. We are taking the next big leap towards scaling and reaching more homes through DTH. Their invaluable experience in start-ups and ability to function in a fast paced dynamic environment will strengthen our operational capabilities as well as finance functions across production, distribution, supply chain, sales & customer service.”

  • Will foreigners buy into easing of FDI in cable TV, DTH?

    Will foreigners buy into easing of FDI in cable TV, DTH?

    MUMBAI: The government has earlier this week announced the lifting of Foreign Direct Investment (FDI) barriers for 15 sectors as a Diwali bonus to industry.

     

    Hereon, the limit for uplinking of news and current affairs for television channels has been increased from 26 per cent to 49 per cent. Foreign majors wanting to look at a long term play in the broadcast distribution space can now pump in 100 per cent in cable TV networks (multi-system operators and local cable operators), DTH, teleport, headend-in-the-sky (HITS) and mobile TV ventures as against the 74 per cent earlier Distribution platforms can raise as much as 49 per cent FDI through the automatic route. If companies want to go beyond that, they will need government approval. The radio sector has got some welcome breathing space in that investment limits have been hoicked to 49 per cent from 26 per cent earlier.

     

    What does this all mean for the television ecosystem? Will there be a flood of money flowing into cable TV, DTH, teleport, HITS and mobile TV ventures from overseas? Will news channels attract foreign investment by the sackful?

     

    We, at indiantelevision.com, believe that none of this likely to happen in a hurry in all the segments that have been prised open.

     

    Distribution is a tough play in India as history has shown. It is relatively unorganized, with low ARPUs, it lacks transparency, is small in scale, and is short on capital, which makes it an unappealing asset to invest in. Digitisation of cable TV has led to some improvement, but it is still a halfway house. The lack of last mile customer ownership, paucity of subscriber information, lack of two way addressability, and business norms and ethics make it a relatively high risk investment.

     

    Things may change if Reliance Jio makes inroads into cable TV and brings some order into it. However, its management may well discover that distribution is like a slippery soap in a shower, that  it is more complicated than distributing electricity or exploring and drilling for oil.
     

     

    It is the MSOs’ broadband businesses that are a lot more transparent,  that have in any case been spun off into separate companies keeping in mind government regulations and restrictions.  And this is what may catch the interest of investors.

     
    In the nineties, Rupert Murdoch partnered with Subhash Chandra in Siticable – only to exit a little later with his knuckles bruised. A few years later he once again took a shot at it when Star India invested in the Rajan Raheja promoted Hathway Cable & Datacom. Once again, he had to exit yelping in pain. Since then, Star has been extremely averse to investing in cable TV.

     Most of the major distribution ventures are listed: Siticable, Hathway Cable & Datacom, Ortel, Hinduja, Den Cable, SunTV, DishTV, Airtel, Reliance Big (the management is currently getting it delisted),  and some even have attracted private equity investments. But the stock market has not really bought into pure play distribution initiatives and the shares have been depressed as compared to the prices they could command. The PEs which have parked funds in them are still waiting for a nice fat return on their investments.

     Where FDI has worked is in the DTH space and the sole exception is DTH operator Tata Sky in which Twenty First Century Corp holds a 30 per cent stake.  Then there is Videocon d2h, which is listed on Nasdaq, following to the support of its lead investment partner Harry Sloan of Silver Eagle. The Essel group owned Dish TV has got the thumbs up from the market and has got a buy recommendation from many research firms.

     
     
    DTH operators, unlike their cousins on the ground, are more organized, professional, have transparency of operations and have recently started getting some payback from their upfront and cumulative investments over the past decade or so building scale in their customer base.

     
    Hence, it is quite possible that Dish TV, Airtel, Videocon, and Tata Sky might see some activity following the loosening of FDI.  But even prior to the announcement, not many investor suitors had lined up looking to partner with them.

    At the time of writing this report, the stock markets had reacted positively to the news about the easing of FDI in media, and had pushed up the share prices of Dish, Siticable, DEN Networks by 10 per cent plus before Diwali.

     Sun TV, has so far been happy being a lone player with a stranglehold on its markets, and has desisted from partnerships with local players. One does not know if promoters Kalanithi and Kaveri Maran will change their thinking now.

     As far as news is concerned, major news organisations worldwide have enough on their hands. They are grappling with the changing paradigm of news gathering and dissemination, courtesy the explosion in social media and their live streaming apps which threaten to make individuals  – whether journalists or online stars – with huge followings, a rival to large news networks. For the new millennials, online is the preferred source of news, which they consume on their twitter or facebook timelines.

     India has a surfeit of news channels or ‘views channels’; many of them are run for purposes of influence, and not as commercial initiatives. For the relatively more professional ones, the key question is whether foreign investors – especially those in the news business would be happy with a less- than majority equity position in a news television channel. For that to appear attractive they will look for dividends or a northward movement in the stock price.
     

     
    News organizations normally are obsessive about keeping control over the content on a news channel. But you there have had been licensing deals – like in the case of CNN-IBN.  Others have come in on their own, after getting downlinking and uplinking clearances.

     

    It’s not as if news television in India is a very scalable business opportunity.  At least, so far. The largest news network does revenues of around Rs 500 crore.  This could go up to Rs 1000 crore with the expansion in regional news and distribution internationally. The limited scalability despite, amongst the news players some of whom look alluring figure: NDTV, Times Now, Zee Media, TV9, TV Today, ITV group, and  India TV. Of course some smaller players like BAG Films E24 group might attract FDI.

     

     What should come as a relief is the allowing of 100 per cent FDI through the automatic route in non-news and current affairs channels. Many new channels and broadcast networks which are looking  to expand their global footprint to include the Indian audience may now do so, either through mass and/or niche channels. Full ownership means they can control their destinies in India.
     
    Now that the government has opened its house on FDI in media, it would do well by making the procedures simpler and faster. TV broadcast players managements have to perforce get ministry of home affairs, ministry of information and broadcasting’s  and RBI’s clearances. The  bureaucrats,  directors and officers in these bodies need to be trained to reflect the Modi government’s approach in being industry enabling, rather than being obstructionist. Maybe a single window clearance approach could help. Otherwise, even this FDI liberalization may end up being another well-intended-but-misplaced initiative.

     

  • Arianespace launches GSAT-15 successfully

    Arianespace launches GSAT-15 successfully

    MUMBAI: At 3:04 this morning, Arianespace’s A5 rocket blasted off from its launch pad in Kouru, French Guiana with its payload of two satellites Arabsat 6B (BADR7) and GSAT-15. The former found its slot in space 27 minutes later, while the latter attained its Geosynchronous Transfer Orbit (GTO) 43 minutes after launch.  It was a flawless launch on a perfect evening, said officials from ISRO and Arianespace.

     

    India’s satellite control centre at Hasan in Karnataka is in control of the satellite  at the time of writing and maneuvres over the next three days will see it attaining its geo-stationary orbit at 93.5 degrees East. It will be replacing two ageing satellites Insat3A and Insat 4B.

     

    GSAT-15 has 24 Ku-band transponders to serve the needs of DTH and satellite TV operators over India as well as  VSAT operators who provide DSNG operations to news channels. It  also carries the  GPS-Aided GEO Augmented Navigation (GAGAN) payload operating in L1 and L5 bands,  to enable communications for civil aviation and other location-based services.

     

    Speaking from Kouru ISRO Satellite Centre (ISAC) Director M Annadurai said two other  communication satellites GSAT-17 and GSAT-18 are getting ready for launch by an Ariane vehicle in the next year. “The realisation of both the satellites is in a very advanced stage,” he said.

     

  • Shemaroo launches Miniplex movie service on Tata Sky

    Shemaroo launches Miniplex movie service on Tata Sky

    MUMBAI: After joining hands with Airtel Digital TV, Shemaroo Entertainment has now tied up with yet another DTH operator – Tata Sky to launch its subscription-based movie premiere service Miniplex.

     

    The subscription based ad-free service Miniplex will premiere one movie every Friday for the first time on Indian television as well as other recent movies.

     

    As was reported earlier by Indiantelevision.com, in addition to DTH, Shemaroo also plans to launch Miniplex across other platforms like cable and online in a phased manner.

     

    The monthly subscription price for the service is Rs 60. To activate it, consumers can give a missed call to 9230892308. For HD subscribers, the service is on channel number 298, whereas for SD subscribers, it is on 298.

     

    Shemaroo Entertainment director Hiren Gada said, “Miniplex is a subscription-based movie premiere service curated to cater to movie lovers across the country. We are glad to tie up with Tata Sky for this service. Tata Sky consumers can now enjoy world television premiere of movies on every Friday. Not only this, other movies showcased on the channel are carefully selected set of movies that are not telecasted on television so often.”

     

    The ‘Premieres’ are supported by ‘Premiums,’ which are movies released post 2005. ‘Premiums’ will be showcased for five days of the week with everyday featuring a new movie.

     

    Tata Sky chief content and business strategy officer Paolo Agostinelli added, “To satisfy our subscriber’s hunger for refreshing content, we were glad to tie-up with Shemaroo to provide this collection of movies under the new service called Miniplex. The day-long movie timings, enriched content with the novel concept of premiere and premium movies  ensure the movie-buff’s of Tata Sky have entertainment on their fingertips 24×7.”