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Tag: DTH

  • TRAI says 44% of DTH subscribers inactive

    TRAI says 44% of DTH subscribers inactive

    MUMBAI: Direct-to-home television service providers appear to be having a tough time retaining their subscribers. A large portion of their registered subscribers are inactive.

     

    Of the total registered subscriber base of 60.71 million of the six DTH companies as on 30 September, 2013, the number of active subscribers was just 34.26 million (or 56 per cent), according to the Telecom Regulatory Authority of India’s quarterly report titled ‘The Indian Telecom Services Performance Indicators’.

     

    The DTH subscriber base as on 30 September 2013 was three per cent more than a quarter ago.

     

    The report said the number of internet subscribers (excluding internet access by mobile devices) has increased 1.38 per cent  from 21.89 million at the end of June 2013 to 22.19 million at the end of September 2013.

     

    The number of broadband subscribers has also risen. The figure went up from 15.20 million in June to 15.35 million in September, thus registering a quarterly growth of 0.99 per cent and year-on-year (y-o-y) growth of 4.52 per cent. That apart, the number of narrowband subscribers (except internet access by mobile devices) increased from 6.69 million to 6.84 million, registering a quarterly growth of 2.25 per cent from a quarter ago.

     

    The report also mentions that the number of private satellite TV channels as permitted by the Information and Broadcasting Ministry is 784, of which 187 are pay channels. The maximum number of TV channels (Pay, FTA and Local) being carried by any of the reported Multi System Operators (MSOs) is 218 whereas in the conventional analogue form, maximum number of channels being carried by any of the reported MSOs is 100 channels.

     

    As per the report, the number of telephone subscribers has decreased from 903.09 million at the end of June 2013 to 899.86 million at the end of September 2013, thus registering a negative growth of 0.36 per cent over the previous quarter. “This reflects y-o-y negative growth of 4.03 per cent over the same quarter last year,” states the TRAI report.

     

    The report also highlights a net decline of 2.78 million telephone subscribers during the quarter. “The total wireless (GSM + CDMA) subscriber base has decreased from 873.36 million to 870.58 million, registering a negative growth rate of 0.32 per cent over the previous quarter. The y-o-y negative growth rate of wireless subscribers for September is 3.97 per cent,” says the report.

     

     The number of subscribers who accessed internet using a mobile device is 188.20 million during the quarter ending September 2013.

  • TRAI ends aggregation of content from different broadcaster groups

    TRAI ends aggregation of content from different broadcaster groups

    Updated – 08:05pm

    MUMBAI:  Aggregation of television content from various broadcasters will soon be history and content aggregators will be able to act only as agents of broadcasters.

    These are the provisions in the amended regulations notified by the Telecom Regulatory Authority of India (TRAI) today.

    The TRAI has barred content aggregators from signing Reference Interconnect Offers (RIOs) with Distribution Platform Operators and said broadcasters themselves will now need to publish the Reference Interconnect Offers (RIOs) and also enter into interconnection agreements with Distribution Platform Operators (DPOs).

    TRAI has now clearly defined the roles of the broadcaster, the channel aggregator and the DPOs which include the multi-system operators.

    Broadcasters have six months to sign RIOs with DPOs themselves and current content aggregators like Media Pro, IndiaCast UTV Media Distribution and One Alliance will only be able to function as agents of broadcasters.

    TRAI has allowed a broadcaster to appoint an agent for signing the RIOs, but clearly stating that the agent can only act in the name of and on behalf of the broadcaster.

    The regulator in the notification clearly mentions that the appointed agent cannot alter the bouquets as offered in the RIO of the broadcaster and if one agent acts as an authorised agent of multiple broadcasters, individual broadcasters need to ensure that such agents do not bundle channels or bouquets with other broadcasters, TRAI said.

    TRAI has, however, provided relief to broadcaster groups by allowing more than one company belonging to the same group to bundle their channels into packages.

    Broadcasters will have to file amended RIOs and interconnection agreements with the regulator.

    According to TRAI, currently around 239 pay channels (including HD and advertisement-free channels) are offered by 55 pay broadcasters. These channels are distributed by 30 broadcasters/aggregators/ agents of broadcasters.

    “The distribution business of 58.6 per cent of the total pay TV market available today is controlled by the top three aggregators,” the TRAI said, referring to Media Pro, IndiaCast and One Alliance.

    TRAI feels that the bouquets offered by aggregators comprise popular channels of multiple broadcasters they represent. Thus, leaving DPOs with no option, but to subscribe to these bouquets and then push these channels to the consumers to recover costs.

    Analysis of bouquets offered by Aggregators

    “This shows that aggregators are offering bouquets comprising as many as 20 channels of six broadcasters. Another bouquet, comprising 13 channels, has channels drawn from 9 broadcasters,” says TRAI through its published report.

    Explaining further the TRAI paper says, “Media Pro has mostly entered into agreements with MSOs for around 65 channels out of the 76 pay channels it distributes. These MSOs include both smaller independent MSOs as well as MSOs operating at national level. Similarly, IndiaCast and MSM Discovery have mostly entered into agreements for around 30 (out of 36 channels being distributed by it) and 20 channels (out of 28 channels being distributed by it) respectively. This substantiates the allegation of the DPOs that the large aggregators are virtually compelling them to enter into agreements to subscribe to almost all of their channels.”  

    The regulator has also found that majority of the channels distributed by the aggregators belong to broadcaster groups who own or control the aggregator. “90.7 per cent- Media Pro, 58 per cent IndiaCast and 57 per cent- MSMD.” 

    According to the regulator, the rates being charged from non-vertically integrated DPOs are, in some cases, higher by 62 per cent as compared to the vertically integrated DPOs.

    “The situation becomes even worse in the case of relatively smaller non- vertically integrated DPOs in which case the rates charged are higher by about 85 per cent as compared to the vertically integrated DPOs.”

    TRAI feels that the amendment will not only ensure a better spread of popular channels in different bouquets available to the DPOs but would also reduce the number of less popular channels pushed on to such bouquets.

    “Even in case a DPO fails to arrive at an agreement with a particular broadcaster the opportunity of finalising agreements with other popular broadcasters is not lost. Thus, DPOs would be placed in a much better position to carry out their businesses,” TRAI said.

    “The interconnect regulations aim at making available the content to DPOs in a transparent and non-discriminatory manner. For this, it is important that the offerings of the broadcasters are available in the public domain. This is why broadcasters have been mandated to publish an RIO prescribing the technical and commercial terms for making available their TV channels to the DPOs,” it says.

  • Videocon d2h launches Sun HD channels

    Videocon d2h launches Sun HD channels

    MUMBAI: Videocon d2h is growing leaps and bounds in strengthening its position in the High Definition (HD) space. The direct to home (DTH) operator has added four Sun HD channels on its platform, thus taking the total number of HD channels and services to 27. These channels are: Sun TV HD, KTV HD, Sun Music HD and Gemini HD.

     

    The addition, according to the DTH player, is an extension of its mantra ‘Delighting the Customer Always.’ The four HD channels will be available in the South Platinum HD pack at Rs 540.45. The DTH player through a release, informed that the Sun TV HD will be available on channel no 802, KTV HD on channel no 797, Sun Music HD on channel no 798 and Gemini TV HD on channel no 872.

     

    “The presence of the four new south HD channels on our platform will definitely give us an edge over other DTH players in the highly competitive south market. Viewing preferences are very important for us and we ensure every effort to provide more content for customers suiting their needs. We look forward to consolidating our leadership position in high definition category and delighting consumers,” said Videocon d2h CEO Anil Khera.

     

    The announcement of the four new HD channels has come after the DTH player had recently announced the addition of another 20 channels on its platform in the past 2-3 weeks. These channels include GSTV, India News, News X, Oscar Movies, Reporter TV, Zee Anmol, Big RTL Thrill, Gemini Life, Sun Life, Surya Music, T News, Chintu TV, Kushi TV, etc.

     

    “Our aim of continuously raising the bar in the High Definition category has got a further boost. We always strive to provide the best to our consumers and in this endeavor we have been continuously adding new channels and services. With growing demand for the high definition channels from subscribers and especially addition of Tamil and Telugu HD channels, we are definitely on the right track,” informed Videocon group director Saurabh Dhoot.

     

    “The ‘South base pack’ and the ‘South Silver pack’ has been made extremely strong by adding 55 channels which includes almost all south language channels. The operator with this has 290 channels and services at Rs 175.28 per month,” the release said.

  • First Indian Digital TV Honours celebrates digitisation’s leading practices

    First Indian Digital TV Honours celebrates digitisation’s leading practices

    NEW DELHI: It was a day when the stalwarts of the Indian cable, broadcast and direct to home television industry converged to witness the best or leading practices of the industry being recognised at indiantelevision.com’s first ever Indian Digital TV Honors (IDTH).  The event, held at the Lalit  Hotel in Delhi late last eveing saw 15 professional/initiatives/organisations getting a citation for evolving best practices during phase I and phase II of digitisation over the past 18-24 months, ever since digital addressable system (DAS) was mandated by the government.

     

    An advisory panel comprising 13 professionals from broadcast, cable TV, consulting and technology , along with the editorial team of indiantelevision.com, helped finalise the honoraries after a tough round of discussion for over a month on the merits and demerits of those being sought to be honoured for their great work and innovations.

     

    The  event was attended by close to 200 professionals from the cable, DTH and broadcast industry and the regulatory body.

     

    The evening was anchored by Indian Television Dot Com Founder, CEO and editor-in-chief Anil Wanvari along with TV actor Prerna Wanvari  who hosted the two hour long proceedings.

     

    The First Indian Digital TV Honours, which were powered by leading Indian MSO DEN Networks began with Tata Sky being honoured for its obsessive focus on consumer service and product quality. The direct to home operator (DTH) has for long being spoken of excelling in the area of customer services, and this honour  only further supported that perception.

     

    India’s oldest DTH operator Dish TV  was honoured for its dervish like focus on its financial health and for protecting and creating shareholder value. The citation was received by CEO RC Venkateish, who shared the fact that he has to answer to public and other shareholders regularly, making  it imperative for the company to be bottom line focused. 

     

    “We have been generating free cash flow for quite sometime, and probably are the only Indian DTH company to do so,” said  Venkateish. “Things could be better if we could rationalise content costs which are still way too high.”

     

    Videocon d2h was recognised for its technological innovations and for the use of indigenous set top boxes which the group’s sister organisation manufactures indiegenously

     

    Additionally MSO Hathway Cable & Datacom was honoured for its pioneering push into broadband internet services, way before anyone else in the business. “With over 400,000 users we have gained a lot of experience which will only further help us as we move forward. Consumers are demanding a lot more bandwidth as they are guzzling a lot more online content,”  said  Hathway CFO G. Subramaniam. “We will be the best company providing  the broadband internet service in the future.”

     

    Tata Sky was also recognised for its its Value Added Services (VAS)  which it says is helping lure subscribers to them.

     

    DEN Networks, which had in 2013 attracted an investment of $160 million from Goldman Sachs at a time when every other MSO was being turned away, was honoured for becoming a beacon for the cable TV sector in the area of raising capital. Elated with the honour, DEN Network CFO Rajesh Kaushal said, “This is a very cash guzzling business and so there is a lot of investment and infrastructure that is needed. We have enough capital with us to see us through Phase I, II  and III  of DAS.”

     

    The Indian Broadcasting Foundation (IBF) was recognised for its marketing and promotional campaign to encourage the smooth spread of digitisation.  Almost every channel aired the commercial several times a day to push the message and educate consumers about digitisation and set top boxes. The same was recognised by the Indian Digital TV Honours advisory committee.

     

    “We wanted to incite consumers through the ad campaign. We had aired the promos for at least eight times a day on 150 channels,” said IBF secretary Shailesh Shah while receiving the honour.  Leading broadcaster Star India was also recognised  for its strategy to invest big money in sports. Sports TV worldwide is a big driver of pay TV and Star India’s early initiative to invest big money is only going to see a similar play being played out here.  And this in turn will likely encourage the process of digitsation.

     

    SitiCable Network was honoured for fostering Local Cable Operator (LCO) partnerships and being the first ones to give carriage fee revenue share to the LCOs. “We believe that LCOs are an integral part of the cable TV ecosystem and that is the reason we have given them the access to our subscriber management system and also are sharing the carriage fee revenue with them,” informed SitiCable COO Anil Malhotra.

     

    It was in 2013 that Doordarshan owned DTH service DD Direct Plus was rechristened as Freedish. The DTH player which introduced several innovations for its consumers in the year was recognised for catering to the needs of Indian consumers through Freedish. “Freedish is the most profitable venture of Prasar Bharti. Broadcasters are changing their business model for us, which is welcome change,” said Doordarshan additional director general Ranjan Thakur while receiving the honour.

     

    Two industry leaders have put their shoulder to the wheel and have played a major role in promoting digitsation over the past 18-24 months and have themselves invested heavily in it: Hathway Cable’s Raheja family led by Viren Raheja and DEN Networks’ founder Sameer Manchanda. “If you have patience, scale and execution one can excel in this field which holds a lot of scope. Cable will grow exactly how mobile grew in India, but you will have to wait minimum for five years to see results,” opined Manchanda. “You have to have the passion to see your belief in cable TV come true.”

     

    The evening also saw Seven Star Digital Network being honoured for effectively managing digitisation as an independent operator. Honours were also given to Ministry of Information and Broadcasting and Telecom Regulatory Authority of India for their push in making India a digitised nation. Most of industry has begun hearing of the Maharashtra Cable Operators Federation (MCOF), which represents the interests of the last mile owner.  In time, if it does manage to facilitate a feasible formula on revenues and shares with MSOs, then it stands a strong chance to be honoured  in next year’s Indian Digital TV Honours.

     

    More power to the industry’s elbow!  

  • First Indian Digital TV Honours on 28 Jan

    First Indian Digital TV Honours on 28 Jan

    MUMBAI: 2013 was a watershed year for the cable TV and DTH industry, what with the the entire TV industry – cable TV operators, MSOs, DTH players –  working on going into overdrive, pushing the government’s digital addressable system (DAS – digitisation) mandate. There were big developments and even bigger initiatives, and it is with a view to recognising and rewarding such endeavours as well as the individuals and organisations behind them that Indiantelevision.com has instituted a first-of-its-kind initiative called ‘The Indian Digital TV Honours’, to be held on Tuesday 28 January at The Lalit, New Delhi.

     

    The list of best practices and worthy winners has been compiled by an advisory board comprising senior executives, industry veterans and the indiantelevision.com editorial team led by founder, CEO and editor-in-chief Anil Wanvari.

     

    According to Media Partners Asia executive director and co-founder and member of the advisory board Vivek Couto, The Indian Digital TV Honours is a laudable effort as it will go a long way in encouraging individuals to accelerate the development of the industry.  “That’s because it seeks to recognize the achievement, innovation and vision of the stakeholders,” he says.”

     

    Media observer and consultant and member of the advisory board Sanjeev Hiremath adds: “It is an encouraging initiative by Indiantelevision.com. It is a way to both support and encourage the implementation of DAS. I am glad that a platform like this has been set up by the Indiantelevision team.”

     

    BCCL president corporate development (and member of the advisory board) Sunil Lulla believes there was a need to acknowledge the manner in which television distribution is changing. “I am glad that there is another first from Indiantelevision.com. Acknowledgement is needed. Though the switch from analog to digital will take time, encouragement is needed.”

     

    Chrome Data Analytics and Media founder and MD Pankaj Krishna joins his peers in lauding the effort. “I am sure pretty soon, others will follow it too. One must remember that digitisation is very critical to us now and with the change in wind, the transition from analog to digital is going to become crucial. In short, it is like the change from Kodak film roll which we used 10 years ago to a digicam, which has become a part of our lives now.”

     

    So how did the advisory board select the winners? Says Wanvari: “We had detailed discussions with various stakeholders in the industry, to come up with a filtered list of top achievements to which the advisory members also contributed.”

     

    Adds Lulla: “A list was given to us comprising names of people and companies that have made a difference to digitisation from various points of view like preparedness, initiatives taken, consumers, success etc. So, I looked at these from various perspectives like who made it simple for consumers, who followed the regulations, which company or person drove the change and so on…”

     

    What were the criteria for selection? Couto anwers: “The criteria were simple. Any stakeholder or regulator who has ushered in development through investment, leadership or a combination of both to accelerate quality content and infrastructure for consumers will feature in the list.”

     

    The entire selection process took almost a month for the advisory board. Hiremath, who identified categories to honour key initiatives, says: “This is going to be an exciting and interesting event.”

     

    According to Hiremath and Couto, while the first edition will honour well-known names from the industry, the awards will only get bigger and better with time.

     

    “We will see OTT players, software developers, app developers and many others entering the ecosystem in the future,” Couto rounds off.
     

    The Event is: 

    Powered by Partner:  Den

    Associate Partners: Hathway, Surewaves, Videocon D2H

    Support Partner: SES, The One Alliance

    Media Partner: India News

    Thanks to HBO Defined and HBO Hits for the support

    Online Media Partners: Radioandmusic.com, Tellychakkar.com

    Event Executed By: ITV2.0 Productions

    An Initiative By: Indiantelevision.com

  • Tata Sky opens Actve Series to advertisers

    Tata Sky opens Actve Series to advertisers

    MUMBAI: Indian DTH players have been scouting for newer revenue opportunities in order to reduce their dependency on subscription revenues. One of the bigger ones,  Tata Sky, yesterday announced that it would be selling advertising space on its Actve Series platform allowing advertisers and brands to effectively reach out to the desired TG through either commercials or integrate brand communication in the programmes.

     

    Some of the popular series include Actve Fun Learn for kids under 10 years, Actve English, Actve Cooking, Actve Vedic Maths and Actve Music. According to the DTH provider, almost 2 million of its subscribers watch the Actve Series with cooking and English being the preferred choices, especially in tier II cities and towns. Brands such as McCain Foods, Google, Yakult, Maggi and Britannia have already been signed on to showcase their infomercials on Actve Cooking.

     

    “Reaching out to the audience based on research and preferences has helped our Actve services become a huge success in India. Being a paid platform, there is a high level of interaction with repeat viewers every day consuming content that they desire and expect. The infomercials hence integrated aptly with the Actve channels have resulted in a positive impact on our subscribers,” states Tata Sky CCO Vikram Mehra.

     

    Media planners seem sold out on the idea of getting segmented viewers for their clients. “It is a good way to reach out to people. Ultimately it is content that could be in any form. 2 million isn’t a small audience. The key thing is that it gives you a focused audience,” says MindShare India principle partner Jai Lala.

     

     “Each of these DTH players has launched such content platforms of their own so that they get to know the profile of their users. It is a thing we have been waiting for since long,” adds Lodestar UM CEO Nandini Dias.

     

    Some brand names have been signed up already, but that apparently is only the tip of the iceberg, as bigger advertisers will surely get on board.   Dias is of the opinion that personalised brands will do well in this series and FMCG brands will surely advertise as they advertise on an overall basis. Lala feels that brands that can integrate well with the programme will work best. “Consumers are getting onto this platform to learn. So educational brands, retail brands would work well here,” he says.

     

    However, this being a first attempt the ad rates  will be at a bare minimum. “The ad rates need to be evolved. They have to be competitively priced because there should be a logic as to why should money be invested into these active services. If there is better segmentation for clients then we can invest and ensure that money is not wasted,” points out Dias.

     

    Tata Sky claims that through its various interactive series, advertisers can directly target customised TGs. Currently, the only way to advertise on the DTH provider is on its channel 100, its initiation channel.

  • MIB orders WB to stop transmission for one day

    MIB orders WB to stop transmission for one day

    NEW DELHI: It seems the Ministry of Information & Broadcasting (MIB) keeps a close watch on channels that don’t follow the guidelines set for them. That is what is evident from a recent incident where the Ministry has cracked its whip on the international movie channel, WB (Warner Brothers). The Ministry has prohibited the transmission or retransmission of the of WB TV channel for one day throughout India later this month as a penalty for telecasting a V/UA certified film It’s a Boy Girl Thing on 7 January, 2013 at 11.51 am.

     

    The prohibition on any platform throughout India will be with effect from 00.01 am on 24 January till 00.01 am on 25 January.

     

    The action has been taken under in exercise of the powers conferred by sub-section (2) & (3) of Section 20 of the Cable Television Networks (Regulation) Act 1995 and under paras 6.1 and 6.2 of the Guidelines for Downlinking from India.

     

    The Ministry had issued a notice to the channel on 20 August last year as the telecast appeared to violate late Rule 6(l) (a), 6 (tXd), 6(l) (k) 6(l)(o) & 6 (5) of the Cable Television Networks Rules 1994 under the Cable Television Networks (Regulation) Act 1995 and the channel was asked to show cause within fifteen days.

     

    While asking for a personal opportunity to explain their position, M/s Turner International India, the parent company of WB channel, in their reply of 2 September said it was not aware about the Central Board of Film Certification (CBFC) suggesting 15 voluntary cuts and l6 compulsory cuts in the film until the Ministry issued the notice. It further said all content telecast on the channel was reviewed by its Standards and Practice Department which had very strict mechanism to ensure that only appropriate material was played out in accordance with Indian requirements.

     

    Turner further said that immediately upon receipt of the notice, the channel withdrew and stopped all further telecast of the film and indicated that the channel was willing to re-apply to the CBFC for re-certification of the film and would not telecast the same until a certificate was obtained by the CBFC. Furthermore, it said the CBFC Certificate available with it contained only the compulsory cuts without any reference to the voluntary cuts and that it had not questioned the completeness of the Censor Certificate and had made the edition and cuts based on the belief that the Censor Certificate available with them was the only, valid and complete Censor Certificate issued by the CBFC.

     

    In the personal hearing given by the Inter-Ministerial Committee, the Turner representative issued an unconditional apology for airing the film with offensive content on television and admitted that it was a mistake on the part of their programme team. The Committee previewed the CD containing the film, considered the reply of the channel and the personal submissions made by the representative of the channel.

     

    The Committee held that the channel had clearly violated the provisions of the Programme Code and observed that this kind of violation of the provisions of the 1995 Act and Rules framed there under was not acceptable. Though the channel had accepted their fault and apologised for their mistake, ‘they cannot escape the responsibility of ensuring that the content on their channel is in conformity with the Programme Code at all times. Moreover, before telecasting any film due diligence has to be done by the channel to assure that only certified version fully compliant with all necessary and voluntary deletions/editions is aired.

     

    The Ministry said the film telecast by the channel shows ‘highly objectionable visuals which denigrate Women’.

     

    ‘The Visuals shown are very offensive and obscene as the private parts of male and female are focused upon. The portrayal of the sex change is in bad taste and is indecent. The visuals are not fit to be viewed by children and also not suitable for unrestricted public exhibition. These visuals also denigrate women,’ remarks the notice.

     

    Rule 6 (1) (a) of the Programme Code contained in the Cable Television Networks Rules, 1994 provides that no programme should be carried in the Cable Service which offends good taste or decency. Rule 6 (l) (d) provides that no programme should be carried in the Cable Service which contains anything obscene, defamatory, deliberate, false and suggestive innuendos and half truth. Rule 6 (l) (K) provides that no programme should be carried in the Cable Service which denigrates women through the depiction in any manner of the figure of a women, her form or body or any part thereof in such a way as to have the effect of being indecent or derogatory to women. Rule 6 (l) (o) & 6 (5) provides that no programme should be carried in the Cable Service which is not suitable for unrestricted public exhibition and children viewing’.

     

    In view of the apology by the channel and its reply, the Committee recommended the prohibition of the transmission/re-transmission of the channel throughout India for one day.

  • Sun Direct to add remaining DD channels within 72 hours

    Sun Direct to add remaining DD channels within 72 hours

    MUMBAI: A week after notices were sent by the ministry of information and broadcasting (MIB) to three DTH operators for not carrying the mandatory 24 Doordarshan channels, one of the three  has decided that it will be adding the remaining six channels to its packages within the next 72 hours.

     

    “Even before the notice was issued, we had initiated a technical upgrade that will facilitate to add more channels on the same transponder. We took steps nearly three months ago to import equipments and to upgrade our software,” says Sun Direct CEO Mahesh Kumar.

     

    As far as the reply to the MIB notice is concerned Kumar says that he will be writing to the ministry post the addition stating that it is complying with the rules. He also mentioned that currently Sun Direct is carrying 18 DD channels and within the next three days, all 24 will be carried by it.

     

    Last week Tata Sky had decided to respond to the MIB’s notice expressing his company’s inability to carry any more DD channels as it lacked the bandwidth on its existing transponders, and stating that new capacity it had signed up for on GSAT-10 has not been delivered to it despite several pleas to all the departments in  ISRO, the MIB, department of space, WPC, and what have you.  This leaves only Reliance Digital to decide a course of action regarding the notice given to it.

     

    According to the MIB directive all DTH operators have to provide 24 DD channels irrespective of whether they provide them a-la-carte or in packages to their subscribers.

    The channels which cable operators must show are DD National, DD News, DD Bharati, DD Urdu, DD Sports, DD India, DD Kashir, DD Punjabi, DD Girnar, DD Sahyadri, DD Saptagiri, DD Malayalam, DD Podhigai, DD Chandana, DD Bangla, DD North East, DD Bihar, DD Uttar Pradesh, DD Rajasthan, DD Madhya Pradesh, DD Oriya, Gyan Darshan, Lok Sabha TV and Rajya Sabha TV. 

  • Dish TV’s pre-budget plea: exempt us from service tax

    Dish TV’s pre-budget plea: exempt us from service tax

    MUMBAI: It’s an annual pre-budget ritual. And one of India’s leading DTH companies has made a fresh request to the finance ministry, one that it has been making for several years now. Dish TV has requested the ministry to exempt it from the 12.36 per cent service tax that it pays per subscriber till the time the Goods and Services Tax (GST) is implemented.

     

    “Every year before the budget, the ministry asks all industries to send in their suggestions. We wrote to them about a month ago and this was one of our suggestions that we have been putting forth since nearly six or seven years,” says Dish TV CEO R C Venkateish.

     

    DTH operators claim that they have to pay up to 50 per cent taxes while cable operators have to bear just about 32 per cent. The tax burden makes DTH expensive for consumers as well. “DTH is the most taxed in this industry,” states Venkateish.

     

    The various taxes thrust on DTH players include service tax, entertainment tax ranging from 10 to 45 per cent in various states, VAT on equipments and 10 per cent of their annual gross subscription revenues as licence fees to the government.

  • TV ratings: Ownership & FDI questions

    TV ratings: Ownership & FDI questions

    MUMBAI: To have foreign direct investment (FDI) in TV ratings or not, that is the question. And the recently-cleared TV ratings guidelines by the Cabinet Committee of Economic Affairs (CCEA) have brought this to the fore by their silence on this score. While announcing that the CCEA had given the go ahead to the ministry of  information and broadcasting (MIB) last week to the Telecom Regulatory Authority of India (TRAI)-recommended  guidelines for a regulatory framework for TV ratings in India,  minister Manish Tewari had this to say.

     

    “In so far as FDI is concerned we would make a separate reference to TRAI with regard to the quantum and need of FDI that should be permitted in ratings agencies. After the TRAI recommendations, the question of allowing FDI would be looked at. So as we speak, no FDI will be permitted in TV ratings agencies till we don’t have a recommendation on it.”

     

    Although the 2013 recommendations do not have any mention of FDI, it is noteworthy to point out that TRAI’s 2008 consultation paper on TV ratings does. The paper says that stakeholders feel that FDI should be restricted to 20 per cent in a TV ratings agency.  It also goes on to suggest that since no security issues were involved and little or no competition was prevailing (only two agencies existed at that time – TAM and aMap  and no regulation existed), that it would be okay of no if no FDI limit was imposed.  “Generally FDI encourages world class technology and international best practices,” TRAI had stated in the paper.

     

    So even as the TRAI was of the opinion that FDI was all right in 2008, in 2013 it gave the issue an ignore. Currently FDI limits for broadcasters are 100 per cent  for non-news and current affairs channels, for news channels 26 per cent, for cable TV 74 per cent, for DTH 49 per cent, for print 26 per cent for general news etc.

     

    Tewari stated that the question of FDI would be looked at after the TV ratings guidelines are notified by the ministry. Could the earlier recommendation of 20 per cent work as a guideline today? Or is the government going to be averse to FDI totally?

     

    Let us take a look at the other major guideline of cross holding in the TV ratings provider. The guideline states very clearly:  ‘No single company/legal entity either directly or through its associates or interconnect undertakings shall have substantial equity holding that is, 10 per cent or more of paid up equity in both rating agencies and broadcasters/advertisers/advertising agencies.’

     

    If one looks at the holding pattern of Mediametrie – the French ratings agency – which is soon to be announced as the Broadcast Audience Research Council’s (BARC’s) ratings partner,  France Televisions holds 22.89 per cent equity in it, TF1  10.8 per cent, Radio France 13.5 per cent and Union des Annonceurs 11.77 per cent.

     

    France Televisions in turn owns 49 per cent of TV5 Monde while AEF (formerly called France Monde) that runs France 24 owns 12.6 per cent of France Televisions. Quite a convoluted holding structure, but clearly one where broadcasters could be owning more than 10 per cent equity in the TV ratings provider.

     

    However, BARC officials are quick to clarify that it is BARC which will be providing the ratings and not Mediametrie. The latter is only a technology supplier and ratings are being outsourced to it. It owns no equity in the ratings company which is BARC. Hence, the question of more than 10 per cent equity ownership by broadcasters in Mediametrie is irrelevant and there will be no violation of TRAI’s guidelines, they emphasise.

     

    BARC, on its part is a non-profit organisation under section 25 of the Companies Act, with nominated representatives from the Indian Broadcasting Foundation, Indian Society of Advertisers, and Advertising Agencies Association of India. In a response to TRAI’s consultation paper, BARC had stated that even though the three may have conflicting interests in the ratings process, its articles of incorporation clearly state that “each has an equal voice in the design, and monitoring of the rating system, and in the administration of BARC, irrespective of the funding pattern.”

     

    TAM, on the other hand, has woes on both fronts as it not only does not comply with the FDI guidelines it also is has issues on the cross holding guideline as it is owned jointly by the WPP group and AC Nielsen. It is even listed on the WPP site as one of its companies.

     

    The key question that everyone is asking at the time of writing is whether TAM Media will move court against the guidelines, as they have come into force so many years after it has been operating in India with the equity and cross holding structures that it has. Or will it give up the fight and pack up just like Coca-Cola did in the seventies, when the government ordered it to reduce the FDI in it to 40 per cent.