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Tag: Media Partners Asia

  • IDOS 2014: Industry solutions to distribution dynamics gain momentum

    IDOS 2014: Industry solutions to distribution dynamics gain momentum

    GOA: The India Digital Operators Summit (IDOS) 2014, the largest TV distribution summit in India ended with significant progress and a level of stakeholder unity on the way forward for digitisation in India, embracing voluntary and mandatory DAS, ground level pricing, interconnect and revenue sharing between LCOs, LMOs and MSOs and broadcaster support for standard, uniform pricing based on addressable deployment. Key stakeholders also agreed that it’s critical to further improve hygiene in Phase I and II of DAS while various ecosystem entities, including DTH pay-TV operators, domestic STB manufacturers, alternative TV distribution  platforms (HITS, Free Dish) along with the cable fraternity agreed that ahead of the delayed DAS mandate, voluntary DAS has legs in Phase III and Phase IV.

     

    IDOS 2014 had a full attendance of the who’s who of the industry with more than 300 professionals from the digital TV landscape making their way to the beautiful picturesque resort of Hotel Leela in south Goa.

     

    The summit which kickstarted with the biggest opening night party organised by HBO on 25 September, saw some eye opener facts presented by Media Partners Asia executive director Vivek Couto on the current status of Indian cable TV industry. He said, “Out of the 262 million households in the country only 162 million houses have a TV. Of this, 27 million is taken up by the free to air service providers such as Freedish via satellite and 7 million by terrestrial DD, while the rest comes under cable and satellite.”

     

    He also informed the gathering that over Rs 32000 crore has been invested in digitisation since 2005 with a bulk of the investment coming from the DTH operators followed by the MSOs and LCOs since 2011. Out of this, over Rs 11000 crore in the last 24 to 30 months has been invested by MSOs and LCOs.

     

    He pointed out that while the cost of all the pay channels on a wholesale basis is Rs 922 to digital platforms, the highest pack price is Rs 550 which is an anomaly and needs correction. “Wholesale channel rates should be reflective of retail  prices,” he highlighted. “The sector needs to move towards retail pricing to foster trust between broadcasters, cable TV operators, and LCOs. Retail pricing will make rates transparent. Competition amongst six DTH, two HITS, five national MSOs and several regional ones and the local cable ops will keep retail rates in check.”

     

    Another important point that came out during the session was that carriage fees which were declining before the digitisation mandate have now reversed their path following completion of phase of phase I and phase II .  “The carriage fee has gone up by 14 per cent on Q1 of FY15 over the previous corresponding quarter,” he informed.

     

    Indian Television Dot Com founder CEO Anil Wanvari suggested the way forward for the cable TV fraternity. He said, “The first thing is to look at digitisation and pay TV with a changed mindset that it will be beneficial to all. The government could look at setting up a digitisation transition fund that will help educate, train, provide seed capital to go digital – this is specially relevant in phase III and phase IV areas. The fund could be discontinued once the transition is completed successfully, say in the next four to five years. A mechanism needs to be put in place to reward people who follow the rules and ensure strict penalties for those who don’t.”

     

    Apart from this, Wanvari also suggested that Subscriber Management System (SMS) should be set up with correct KYC  details and bills be issued to consumers. The government or regulator could also look at laying down standards and tech specifications for set top boxes (STBs) which were in keeping in making the customer technology-future-proofed for at least three to four years and to ensure quality control. That’s if the mandate of made in India set top boxes is to become a reality. “The first wave of digitisation has seen low end zapper boxes being shipped in from China – of maybe not the best quality – and being dumped on to the Indian customer to meet the so-called deadlines in phase I and phase II,” he said. “Which is not fair on the lay customer who may have to go in for a new one in the not to distant future.”

     

    “On the pricing front, industry could be allowed to price their content based on market demand,” Wanvari added. “The prepaid model as followed by DTH with recharges being made available from your kiranawala (neighbourhood store) or paanwala will allow for more transparent collection from the ground for MSOs and the cable sector. The base pack price could rise; and content costs on cable could be brought on a parity with DTH.  On the other hand, different packages could be made available to the consumer.”

     

    One key take away from the three day summit was the fact that right from the broadcaster, to the MSOs, DTH operators and also a few local cable operators, no one is happy with the delayed digitisation. The captains of the industry expressed similar opinion  to what the Telecom Regulatory Authority of India chairman Rahul Khullar has been airing on several occasions, that ‘delayed digitisation sends out a wrong message to the world and helps no one.’

     

    Many also felt that the Average Revenue Per User (ARPU) needs to go up from the current Rs 150 to Rs 250-Rs 300. “ARPUs can see an upward trend only if there is trust amongst the various stakeholders,” said IndiaCast CEO Anuj Gandhi.

     

    Star India president and general counsel Deepak Jacob during a session suggested putting together a commercial model which is uniform. While Siti Cable CEO VD Wadhwa opined to opt for voluntary digitisation, if the broadcasters and LCOs support the MSOs.

     

    “IDOS is a great platform for the industry to express their point of view, which for this year was delayed digitisation. I am very pleased with the discussions and the quality turnout at IDOS,” said Wadhwa.

     

    “As a first timer, I got to learn a lot through all the sessions that were conducted. Given a chance, I will keep coming back,” said Scripps Networks Asia Pacific managing director Derek Chang.

     

    “The session on STB was very informative and there is no other platform where all the stakeholders can meet and discuss the issues related to the cable TV industry,” said Times Television Network MD and CEO MK Anand.

     

    The highlight of IDOS 2014 was the closed door interaction with TRAI chairman Dr Khullar via videoconference with the various industry stakeholders.

  • IDOS 2014: A must, say industry stalwarts

    IDOS 2014: A must, say industry stalwarts

    MUMBAI: The broadcast, cable, DTH industry and the regulatory body is all set for the biggest confab of the year.  To be held in Goa, starting 25 September with a big bang opening night party organised by HBO Hits and Defined, all the heads of India’s pay TV market, distribution, broadcast, cable and DTH industry are gathering to brainstorm and suggest the way forward for the already delayed digitisation at the Indian Digital Operators Summit (IDOS) 2014. 

     

    The extension in the deadline as announced by the Information and Broadcasting Minister Prakash Javadekar has somewhat delayed the plans of many in the pay TV circuit. While the biggest concern currently is smooth rollout of the phase III and phase IV of digitisation, industry biggies will also ideate on how, with consumers moving to other screens apart of television, can be monetised.

     

    The tenth edition of IDOS, is themed around, ‘Digitisation: The Next Big Push.’ Organised by Indian Television Dot Com and Media Partners Asia, the conference unites stakeholders across the value chain to drive meaningful dialogue and facilitate practical solutions to drive the content and distribution markets forward.

     

    “The forum provides opportunity for interaction with all key people involved in the broadcasting sector, not only digital operators but others as well,” says Dish TV CEO RC Venkateish.

     

    According to Venkateish, the theme is very relevant given digitisation is an ongoing process. “That process is something we all hope will take the industry to the next level,” he adds.  The Dish CEO expects the conclave to be a platform for exchange of news, information and opportunity to share some of their view points with the regulator.

     

    For Maharashtra Cable Operators Foundation president Arvind Prabhoo, IDOS’ concept is most pertinent in today’s market scenario. “Once digitisation was announced, all the players in the ecosystem needed to come together and voice their opinion to benefit from it,” says Prabhoo adding that Indiantelevision.com was the first to identify this need and organise such a conference.

     

    “It is a really good one and is only going to get bigger,” he opines.

     

    On the theme for this year’s IDOS, Prabhoo says, “Everyone needs a push, after all the struggle that happened in phase I and phase II. There had to be some kind of out-of-the-box thinking. And this is what will come out in the next two days of the conference.”

     

    Prabhoo is looking forward to Telecom Regulatory Authority of India chairman Rahul Khullar, Hathway director Viren Raheja and Tata Sky MD and CEO Harit Nagpal amongst others to come up with the kind of impetus that can be given by large corporate houses.

     

    BBC Global News India COO Naveen Jhunjhunwala is another industry stalwart who is looking forward to some meaningful sessions and interactions at IDOS, this year. “The TV industry is progressing rapidly and the theme for this year’s conference is a positive step towards bringing together the stakeholders and tapping into opportunities that exist in digitisation,” he concludes.   

  • IDOS 2014: India’s broadcast, DTH & cable television industry’s captain congregate

    IDOS 2014: India’s broadcast, DTH & cable television industry’s captain congregate

    MUMBAI: Heads of India’s pay TV, distribution and broadcast sector are headed for Goa between 25 and 27 September 2014 for the industry’s annual confab – The India Digital Operators Summit (IDOS) – 2014. In its third edition, IDOS 2014’s theme is ‘Digitisation: The Next Big Push.’ 

     
    Organised by IndianTelevision.com and Media Partners Asia (MPA), it unites stakeholders across the value chain to drive meaningful dialogue and facilitate practical solutions to drive the content and distribution markets forward.

     

    The three day summit will kickstart with HBO hosting the most awaited party of the season on 25 September at The Leela in south Goa. 

     

    The highlight for the three day conference is TRAI chairman Rahul Khullar who will address the gathering on ‘Policy, practices and the way forward – The Next Five Years for Indian Television.’

    Day two of the summit will commence with a keynote on the ‘State of the TV Nation’ by Indiantelevision.com founder, CEO and editor in chief Anil Wanvari and MPA executive director Vivek Couto. 

     

    A panel comprising leading investment analysts and investors will next discuss the key drivers of industry economics and value creation and if digitisation extension dates will cause concerns for investors and ROI.

     

    ‘Unity and The Way Forward for the Next Five Years’ will be another topic for discussion at the upcoming summit. During the session, industry leaders will be seen discussing on how there is a need to converge upon and the urgency of proper execution in the coming months. The other sessions will see brainstorming on ‘Specialized content and channels in the digital ecosystem’, ‘Broadband and the digital economy – A focus on ground deployments’, ‘In focus: The growth of alternative video platforms’ and ‘Technology shifts in Indian Pay-TV’ among others.

     

    Amongst the headline names who are slated to attend and speak include: Star India CEO Uday Shankar, Zee TV CEO Punit Goenka, TRAI principal advisor N Parmeswaran, FoodFood promoter Sanjiv Kapoor, Dish TV CEO RC Venkateish, Videocon d2H CEO Anil Khera, Hathway Cable & Datacom MD and CEO Jagdish Kumar, Siti Cable CEO VD Wadhwa, DEN Networks CEO SN Sharma, Mybox CEO Amit Kharbanda, Scripps Networks Asia Pacific head Derek Chang,  Ortel CEO BP Rath, among others. 

     

    Says Indiantelevision.com founder, CEO, and editor in chief Anil Wanvari: “For decades, it has been seen as a land of promise. But India’s $7.5 billion television industry has somehow or the other belied that potential. Forced by the government to digitise, India’s TV distribution ecosystem has been struggling to get its act together. While set top boxes (STBs) have been rolled out, transparent customer billing, pricing deals between content owners and distributors, and conditional access have yet to occur seamlessly. This has left industry precisely at the same spot it was at before digitisation was mandated.”

     

    Adds Media Partners Asia executive director Vivek Couto:  “Revenue leakages continue, and industry discord has only heightened, amongst broadcasters, cable and DTH satellite operators. Clearly, key changes are required with the Government recently calling for an extension to the digitisation deadline to December 2015 for phase III and December 2016 for phase IV. It is in this perspective we expect IDOS to play a key role in getting likeminded  professionals from industry to come together to analyse the just completed phase I and phase II of digitisation and brainstorm for a better phase III and phase IV.”

     

    The title partner for the event executed by ITV 2.0 Productions is Star India. The summit partners are BBC World News, Cisco, Discovery Channel, HBO Defined HBO Hits, SES, Surewaves and Videocon D2H. The associate partners are Akamai, Asiasat, CSG International, DEN, Hathway and Scripps Network. Broadband India Forum is the support partner, while 24 Frames Digital is the webcast partner. The media partners for the event are Avishkar, Cable Quest, Radioandmusic.com, Satellite @ Internet India and Tellychakkar.com

     

    IDOS is to be held at the Hotel Leela in south Goa between 25-27 September 2014.

  • MPA issues Asia Pacific pay TV slowdown warning

    MPA issues Asia Pacific pay TV slowdown warning

    MUMBAI:  Digital pay TV is slowing down in Asia. That was the key takeaway from Media Partners Asia (MPA) executive director Vivek Couto’s annual report on the Asia Pacific market during the Asia Pacific Operators Summit in Bali, last week.

     

    MPA estimates are that entire Asia Pacific pay television ecosystem added 26 million net new customers in 2013, the lowest annual growth since 2007. This reflects a marked deceleration in China and India as well as softer growth in Southeast Asia, especially Thailand, which was the weak link in the region.

     

    MPA which was until this year bullish on the digital pay-TV universe in Asia Pacific seems to have turned cautious if not bearish. It says that net new additions will accelerate in APAC over 2015-16, largely due to some gains in India associated with next, delayed phase of digitisation but the general trend is one of deceleration. Overall, MPA has downgraded pay TV growth for the region at 9 per cent CAGR until 2018.  Adjusted for multiple subscriptions, the data firm indicates that pay-TV penetration will increase from 52 per cent market share in 2013 to 60 per cent by 2018. 

     

    In India, phase I and II of digitisation boosted growth in 2012 but with that done and amidst various structural factors plus the macro environment along with currency depreciation, growth slowed in 2013. “Now we see the next delayed phase of digitisation that is phase III, boosting net new subscribers to 8 million a year in 2015 and 7 million in 2016 before decelerating again by 2018,” informed Couto.

     

    He estimates that on an active paying basis, India has more than 60 million paying digital subscribers. Of this, while 37 million come from DTH, 23 million is from cable. 

     

    “Over the last 24 months, it’s been a transitionary process for the cable industry in India. While in the analogue regime, the multi system operators were at Rs 11 per subscriber, in the digital era, the MSOs are now getting anywhere between Rs 50-70 in Mumbai and Delhi. They will now need to get to Rs 100-110 to start breaking even on video excluding carriage,” said Couto.

     

    Net additions in southeast Asia slowed by almost half last year from 3.7 million to 1.9 million and the two big DTH platforms in Indonesia in particular and Malaysia contributed more than 45 per cent to that growth.  According to MPA, the net additions will reaccelerate in southeast Asia to about 2 – 2.5 million a year driven largely by Indonesia, steady growth in Malaysia and the Philippines but the expectation is that disruption to continue in Thailand and only incremental growth to show up in Vietnam while Singapore will remain somewhat flat.

     

     

    The brakes have been slammed on cable TV growth in China – the other large TV market globally – courtesy direct competition from IPTV, internet TV (the most popular of which are services provided by Wasu, LeTV, XiaoMi and BesTV’s own OTT service platform), and to some extent, online video. Couto said that IPTV in China saw a steady growth of 5.6 million net additions in 2013, driven by content and increasing broadband reach.

     

    North Asia, consisting of Hong Kong, Taiwan, Japan and Korea, saw a rise last year only because of Korea, which contributed 80 per cent to growth due to new customers on IPTV and DTH in a market where penetration exceeds 100 per cent.

     

    “Looking at the macro landscape, you can see pay-TV penetration marginally improve in China over the next five years and this will deliver real pay models, driven largely by IPTV. It might improve further as operators become challenged by the new regulatory policy that establishes a set-top box internet-TV model. A number of online video operators have formed partnerships to enter into the internet TV space,” informed Couto.

     

    In China, India and Indonesia too, the growth in TV houses and wireless broadband users will drive increases in consumption of content. Fixed broadband subscribers across the APAC region will increase too, from 310 million in 2013 to 400 million by 2018 – driven by China, India, Thailand, Philippines and Australia.

     

     

    For Couto, the growth of video on demand (VOD) is now starting to take shape.  “Our metrics just cover pay-TV but this 13 per cent average annual growth to almost US$ 4 billion is driven by China, Korea and Japan while in southeast Asia, Malaysia is the clear market leader with Astro being the best,” he said.

  • Viren Raheja’s reengineering drive at Hathway

    Viren Raheja’s reengineering drive at Hathway

    BALI: Viren Raheja is a man with a mission: to change the culture at India’s leading cable TV multi system operator Hathway Cable & Datacom. With eight million digital TV homes from a total of 11 million, the network has been regarded as one of the shining stars emerging out of India’s cable TV ecosystem. But it has lost some of that shine in recent times.

     

     Admits Raheja who is a director of the firm: “We are going through a challenging phase – turbulence in the cable TV space – life is challenging.”

     

     Raheja is using the changing climes in India’s fragmented cable TV ecosystem – which has been undergoing a government mandated digitization rollout – to re-engineer his firm. “The company – like most of the other MSOs – was rooted in a B2B mindset as most of the time we were dealing with LCOs,” he reveals. “Now we are working on changing the DNA of Hathway from B2B to B2C.  We have already changed the entire senior management with one that has more of a B2C mindset. You will see more of that happening with talent from the telecom being hired.”

     

    Speaking at the Media Partners Asia organized Asia Pacific Operators Summit in Bali, Raheja  revealed that Hathway has done better than most in digitizing and putting set top boxes in subscribers’ homes  with a 30 per cent marketshare nationally. 

     

    “Now the key challenge is monetizing, upscaling customers to HD services and getting subscribers to pay,” he said.  “Gross billing has happened in some places but we are mostly at net billing with the LCOs. Over six months we see the movement to net billing being completed in phase I areas and over 12 months in phase II.”

     

     Raheja pointed out that digitizing is leading to a new power equation being forged between LCOs and MSOs. “Over 12-18 months, this relationship will stabilize. The current revenue split between us and our LCOs in 40 per cent to us and 60 per cent for them.  We see that settling at 65 per cent for us and 35 per cent for the LCOs. Once that happens, we may then think about acquiring some of them.”

     

    He is clear that the next 12 months are going to see the MSO focus on developing local content, pushing HD services and also building up its broadband play.

     

    “HD will help us give a better viewing experience and also the customer will pay more and local content will help keep them engaged,” Raheja disclosed.

     

    “On the broadband front, today, 15-20 per cent of our revenue is coming in from broadband. I would like to see that going up to 35-40 per cent over the next three years. Our play includes giving world class broadband with DOCSIS 3.0 modems. For me getting a nice return from subscribers is more important. Hence, I will be open to losing a video subscriber to retain a broadband subscriber who pays a lot more.”

     

    He believes that all this will need a cash infusion of about $100-150 million, which he intends to raise through a mix of debt and equity dilution.

     

    No merger or acquisition is on the cards with any other multisystem operator – at least for now- he revealed. “Cable is about local operations…I am not sure a merger with DEN or anyone else will create something unique,” concluded Raheja.

  • Media Partners Asia: Cable the ultimate key to India’s broadband digital future

    Media Partners Asia: Cable the ultimate key to India’s broadband digital future

    This is an executive summary of a Viewpoint Paper presented to the Prime Minister’s Office on 16 March 2007. The Paper was produced by research firm Media Partners Asia (MPA), and also supported by Liberty Global, Inc; Macquarie Media Group and Star Group.

     

    The current cable industry, which already contributes 0.6 per cent directly to GDP, has the potential to increase this direct contribution exponentially, if it maximizes its broadband digital potential and attract investment. To do this, cable needs to be seen by the Government of India as the significant platform in the national economic context and as the key driving national broadband digital growth. Therefore, it needs higher priority in policy planning and a framework that allows it to maximize value.

     

    Cable today in India is the dominant last mile pipe, connected to 20 million more homes than fixed line telephony. Cable TV already connects an estimated 71 million homes and almost 60 per cent of homes that own a TV set subscribe to cable TV, with India overtaking the US in 2006 to become the second largest Cable power in the world. Projected to further establish its status as the leading last mile network, cable will, serve more than 100 million TV homes by 2010. Its size and scale, if harnessed, presents a great opportunity to drive broadband digital deployment.

     

    What is needed is an influx of capital an order of magnitude greater than currently exists. However, investors say that sentiment on broadband digital development in India is being somewhat dampened by the regulatory framework, which has grown too intrusive and harmful to long-term growth. As a result, investors are still cautious about funding long term broadband digital network upgrades when regulation imposes strict controls on the pricing of new capital intensive services. Concerns have intensified with the regulation for the deployment of digital conditional access systems or CAS in India. While all investors are agreed that CAS will provide a significant impetus to the deployment of broadband digital networks, they think it will work only in a less tightly regulated context.

     

    Shane O’Neill, Chief Strategic Officer & Board Member, Liberty Global Inc., says: “The market is very attractive in terms of sheer size and growth potential but could be held back by ‘over regulation’ in key areas such as channel rate regulation, mandated revenue shares between industry participants and FDI caps. A lighter approach might be necessary to encourage the significant investment required to develop the broadband and digital industries both of which are very important for India’s future development.”

     

    Alex Harvey, MD of Macquarie Media Group, adds, “We think India’s cable businesses, due to their ability to offer a range of converged services, will be material areas of growth and opportunity. A key element to realising these growth opportunities will be a transparent and proactive regulatory environment – this must be a priority area of government focus.”

     

    Paul Aiello, the new CEO of STAR Group says: “The stakes are high for policymakers and the regulator to get it right, ensuring progressive policies that facilitate investment and growth.”

     

    Investors are eyeing many deals in the cable broadband/digital space… one of the complications for some of the larger investor groups is how the current regulatory framework will play out – the current restrictions on revenue share, channel distribution and pricing are not optimal for investment, especially as there is no concrete signal was to when these restrictions will be lifted.

     

    (The views expressed here are those of the author and Indiantelevision.com need not necessarily subscribe to the same.)

  • EM2 seminar: Indian content producers need to look closer at digital delivery

    EM2 seminar: Indian content producers need to look closer at digital delivery

    MUMBAI: The third annual Entertainment, Media and Marketing (em2) forum organised by the Film and Television Producers Guild of India (FTPGI) was held in Mumbai today. One of the sessions looked at digital entertainment.

    Among the panelists were Tata Sky MD Vikram Kaushik, Microsoft India head gaming Mohit Anand and Indiantelevision.com founder and CEO Anil Wanvari.

    Wanvari pointed to the internet as becoming increasingly important for Hollywood as an additional revenue source. Indian content producers should look more closely at their internet strategies and take a leaf from their counterparts in the West, Wanvari noted. He gave several examples. For instance Fox has started offering films and television shows for download through on its websites Direct2dirive.com, Myspace.com and other Fox Interactive Websites. The playing is limited to to two computers, and a portable play device. Viacom earlier this month stitched together a deal wherein its video clips along with commercials will be served through Google’s Ad sense network.

    It had also announced it would pay $200 million acquire online gaming and entertainment company Atom Entertainment, which boasts two online video sites, AtomFilms.com and AddictingClips.com, and two casual gaming sites, Shockwave.com and AddictingGames.com.Viacom retails videos on Google. AOL has unveiled a video site. Some videos are offered for free while others one pays for.

    Apple’s online music store iTunes earned a billion dollars last year. It has now inked deals with several US broadcasters for paid download of shows.

    In the UK Eros International has a deal with MovieFlix. Films that are offered for download offer possibilities for schemes like games, contests and alternative endings. Moreover the potential on the net extends to television channels as well Wanvari noted. JumpTV which has been aggregating TV channels from all over the world to offer to its subscribers in America. Today it has 200 channels on its network, and the most recent signees being Punjab Today, SET Asia, and Balle Balle.

    It is early days in this business as yet. The studios are generating anywhere between $1.99 to $3.99 for a TV show to $9.99 to $19.99 for a movie. Or they have a fixed monthly subscription fee of $6.95 a month. The revenues are running into a few millions.

    Wanvari adds, “Numbers are minuscule but technological change and a hungry for broadband content audience is pushing the pace. There were an estimated 194 million broadband households in 2005; this expected to more than double to 413 million worldwide by 2010, according to Instat research. Of this, 130 million will be accessing video content.

    “In India, broadband penetration is minuscule: just 1.5-1.9 million, but this is going to balloon to 8 million plus by end 2010, according to Media Partners Asia, Hongkong numbers. Even if 10 per cent of this resorts to broadband video we are talking about a good 800,000 subscribers.

    “These will be high net worth individuals who even if they buy 12 movies online every year at a cost of Rs 75 a movie or Rs 50 a TV episode, could end up generating Rs 125-150 crore in revenue. And if one looks at overseas sales: the figure can easily surpass Rs 150-200 crores per annum. It is probably this that has prompted Eros to partner with MovieFlix.com.”

    Kaushik pointed out the benefits of pay TV addressable service like DTH. Film producers he noted can use this as an additional revenue stream. Abroad within days of a films theatrical release it is made available on pay TV. This will also help curb piracy. There is a clear accountable mechanism in place in a DTH environment.

    He noted that last year 10 million TV sets were sold in India. 75 per cent of these were colour television sets. He noted that in the current cable set up consumers suffer from poor service, not enough special interest channels and no choice in the service provider. Broadcasters suffer due to leakages on the distribution front. The government suffers as it does not get tax revenue.

    Pay TV services like DTH will eliminate these problems. He added that the cable industry will not be hit in a major way by new technologies coming in. In the Tata Sky set up consumers get a 24 hour service. The set top box can be moved from one place to another. Also DTH can reach rural India which has been left out of the cable revolution. He added that since
    1991 when the government allowed cable and satellite television there has been no significant change in terms of the mode of delivery.

    Anand stressed the relationship between films and gaming. He noted that the global gaming business is worth over 24 billion dollars. It makes more money than Hollywood films. He gave an example of the film Pirates of the Carribean which made $136 million in its opening weekend. Microsoft released the game Halo 2 a couple of years ago, which made $125 million on its opening night.

    Microsoft’s Xbox 360 he says represents the start of the seventh generation of gaming. Sony and Nintendo will do something similar later this year. One main reason why he is optimistic about gaming in India is that India has a large population below the age of 18. They are equally if not more technologically savvy than previous generations.

    Things have come full circle as far as films and gaming are concerned. Earlier companies would develop a game on a film if the film became a blockbuster. Today films like Resident Evil are based on video games.

    He noted that in the future one could see film studios alter scripts to make them more game friendly. In fact a lot of studios have people on the look out for ventures that can be adapted into both films and games. In India so far film studios use games as a marketing gimmick. That is not the way forward if Indian film companies want to mine this source of revenue. Some games take three years to develop but if one thinks of the game along with the film the process will be easier. In fact one then has the opportunity to shoot for the game while one is shooting the film.

  • Star Group Q3 revenue up 14% to $123 mn

    Star Group Q3 revenue up 14% to $123 mn

    NEW DELHI: The Rupert Murdoch-controlled News Corp.’s pan-Asian venture, Star Group, operating income grew 28 per cent year-on-year to reach almost $30 million, propelled by ad revenue growth largely emanating from India.

    While the Hong Kong-based Star Group turnover grew 14 per cent to reach $123 million for the third quarter ended march 2006, parent News Corp. continued to maintain strong operating momentum with its Q3 FY 06 (March 2006 quarter) result with an increase in operating income to $889 million.

    According to the Hong Kong-based media research firm Media Partners Asia (MPA), Star Group’s Indian operations grew on the back of weekend programming initiatives at Star Plus and Star One.

    However, MPA states that Star’s revenue growth of 14 per cent in Q3 was below previous quarters (20 per cent – 30 per cent in Q1 and Q2) due to an earlier-than-expected-closure on Star Plus of the second season of the Amitabh Bachchan-hosted Kaun Banega Crorepati (KBC), which is an Indianised version of Who Wants To Be A Millionaire.

    KBC had to be taken off the air earlier this year after its star host, Bachchan, fell ill midway into the second season and expressed his inability to continue shooting for the television programme, which was showing signs of capturing the fancy of the nation once again.

    For nine-month FY 06, Star Group’s turnover tracked up 22 per cent to approximately $400 million, while operating income climbed 16 per cent $86 million with margins down a notch to 22 per cent (versus 23 per cent in 9M FY 05) due to higher investments in programming, marketing and distribution largely in India.

    MPA forecasts indicate that Star could see $141 million in operating income by the end of the present financial year in June 2006 with total revenue at $551 mil. (+24 per cent Y/Y).

    Going forward, Star will be heavily focused on its July 2006 launch of DTH services in India via its 20 per cent-owned $500 million joint venture with the Tatas (80 per cent shareholder) along with a ramp up of programming at its 20 per cent-owned Indonesian terrestrial broadcaster ANTV.

    Tata Sky aims to add up to one million pay-TV subs per annum as it looks to drive digital-led addressability in the Indian market.

    As of March 2006, India’s first DTH pay-TV provider Dish TV (owned by Zee Telefilms boss Subhash Chandra) had close to a million subscribers.