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Tag: Media Pro

  • Home Cable penalized for showing Media Pro continent in non-DAS areas of NCR

    Home Cable penalized for showing Media Pro continent in non-DAS areas of NCR

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) has imposed a penalty of Rs 25 lakh on Home Cable for violating its order of not to transmit signals Media Pro Enterprises, especially those relating to Star Sports, outside the National Capital Region (NCR) territory of Delhi.

     

    After examining certain CDs and report submitted by the Broadcasting Engineering Consultants (India) Ltd, TDSAT chairman Aftab Alam and member Kuldip Singh also said it was recalling its earlier order of 20 December, 2013 and Media Pro would be free to disconnect its signals to Home Cable in accordance with law. 

     

    The Tribunal said it was a fit case to proceed against Home Cable for violation of the undertaking given by it before the tribunal and willful failure to comply with the order, this being a case of continuing contravention of the Tribunal order. 

     

    Home Cable had initially approached TDSAT aggrieved by the disconnection order by Media Pro of 9 December, 2013 issued under clause 6.1 of the DAS Regulations alleging Home Cable was illegally and unauthorisedly carrying the channels of the respondent in an unencrypted mode in the DAS notified areas of National Capital Territory of Delhi and in areas outside the NCT of Delhi by taking the feed from the DAS notified areas, which was in violation/ non-compliance of the terms of  the MoU dated 23 October, 2012 entered between the parties.
     

     

    The Tribunal had on 20 December, 2013 directed that in case Home Cable files an undertaking before the Tribunal that it will confine its operation strictly within the DAS notified areas of NCT of Delhi and shall do the transmission/ re-transmission in digital encrypted mode, Media Pro will not discontinue the supply of its channels to Home Cable network in pursuance of the impugned Notice. It was made clear in the order that any violation of the undertaking shall make the petition liable to dismissal.

     

    It was alleged in the application by Media Pro that for the past one year or so, Home Cable had illegally been providing Media Pro’s content in brazen breach of the aforesaid undertaking. In this regard, Media Pro addressed letters in February this year to the District Collector, Gurgaon, and SSP, Gurgaon for the purpose of registration of FIRs. It was submitted on behalf of Media Pro that Home Cable was providing the content – Star Plus, Star Gold, Star Sports 4 and Star Sports 3 in Gurgaon through Sun Direct DTH boxes. The water marks clearly and conspicuously show Media Pro’s logo as well as that of Sun Direct on the screen.

     

    The BECIL report conclusively established that the system does not comply with the security provisions mandated  by the Regulations, the Tribunal said.

  • 2014: A year of de-aggregation

    2014: A year of de-aggregation

    2014 was a year when the Telecom Regulatory Authority of India (TRAI) issued, as many said, the ‘death warrant’ for the powerful aggregators. The year started with the regulator throwing the ‘big bomb’ on the channel aggregators by introducing the ‘de-aggregation paper’. The paper clearly stated that the broadcaster appointed content aggregators could not mix and bundle channels from different networks before signing deals with the distribution platforms.

    With the regulation, the once content aggregators were given a new name, that of ‘agents’ who would carry out the deals ‘on behalf of’ the broadcaster. TRAI gave the aggregators six months to dismantle operations, or realign as agents. As part of the regulation, it was the broadcasters who could now sign deals with the distribution platforms either directly or through agents, who could only work on behalf of the broadcaster and not bundle channels from different networks. The regulation came as a shock as it curbed the power of aggregators Media Pro, IndiaCast UTV Media Distribution and TheOneAlliance.

    Soon after, aggregators started disintegrating. MediaPro, the JV between Star Den and Zee Turner was the first to announce its separation. Thereafter, both of them began distributing on their own. Zee Network created a separate distribution entity called Taj Television which would also act as agents for Turner channels. MediaPro CEO Gurjeev Singh Kapoor headed off to handle Star India’s international business while COO Arun Kapoor became CEO of Taj. Soon after this, MediaPro terminated its alliance with NDTV, MGM and MCCS.

    The next in line to break up was IndiaCast UTV, the JV between Network 18 (TV18) and UTV. The last to do so was TheOneAlliance (a JV between MSM and Discovery) which has already announced its decision to break away but will formally happen only on 1 January 2015. Meanwhile IndiaCast will act as an agent for UTV as well as Epic TV channel, while MSM and Discovery will be setting up their own operations.

    While on one hand broadcasters were figuring out how they could deal with the new clause from TRAI, on the other hand distribution issues were being fought in the Telecom Disputes Settlement Appellate Tribunal (TDSAT). The fiercest of them was between Hathway Cable & Datacom and Star India/Taj Television that lasted for nearly seven months.

    The first accusation was from Star when it stated that Hathway had removed its sports channels and placed them as a separate pack. Zee Network was nearing the end of its deal with Hathway and wanted to re-negotiate it with the MSO. Hathway failed to reply on time, leading to disconnection of signals from the broadcaster. Thereby, the MSO took Zee to court.

    After long hearings between the three parties, the two cases got combined and it was settled that till the time the case does not come to an end, Hathway would pay Star and Zee at the rate of Rs 23 and Rs 21.5 cost per subscriber (CPS) basis for their entertainment channels and Rs 4 CPS for Star’s sports channels. The last verdict of the hearing came as the TDSAT directed Hathway to enter into RIO agreements with Taj Television and Star India for the DAS markets.

    When everyone thought that the case would come to an end, Hathway went to TDSAT once again claiming that there would be partiality in providing RIO rates to various platform operators. The case came to an end with Star India coming forth and stating that it would only be executing RIO deals for DAS markets with all distribution platforms from 10 November. Though Taj Television had also been ordered to get into a RIO deal with Hathway, the broadcaster later on signed a CPS (carriage) deal.

    The year’s ending saw much discussion on Star’s incentives that were being provided on the basis of channel penetration, reach and channel placement. While most MSOs vehemently protested against the new RIO at first, in the end they took up the channels on incentive basis and created new packs. Most MSOs decided to put the popular channels on the base pack and give the remaining as separate packs, in higher packs or as a-la-carte.

    The year also saw a rise in the carriage fees, which according to many has risen by 20-25 per cent for niche and news channels.

  • Media Pro: The unwinding of a joint venture

    Media Pro: The unwinding of a joint venture

    MUMBAI: When the Telecom Regulatory Authority of India (TRAI) came out with its regulation on the role of aggregators, everyone in the industry was sure that this would herald the death of content aggregators, at least in their current form. Industry insiders revealed that the leading and strongest content aggregator Media Pro would be among the first to break up, but it would take time, probably by mid-2014 or probably a little later.

     

    So when the announcement came last week that the Zee Turner and Star Den joint venture had decided to go their separate ways, it sent shock waves through the industry.  Some said it was premature and that the joint venture could have run a little longer. But sources indicate that the decision was taken at the very top between Subhash Chandra, Punit Goenka and Star India head Uday Shankar directly with only a handful of executives being informed. Industry insiders say that the joint venture had hired a consulting firm to give guidance on what should be done and when.

     

    The breakup will see the two partners setting up independent cable TV affiliate distribution teams. Exactly as it was like almost three years ago when both decided to get together to extract more revenues out of India’s reluctant cable TV operators and multi system operators (MSOs).

     

    Questions are being raised as to where will Media Pro India CEO Arun Kapoor – an old Essel group hand – be placed?  Will he head the Zee Entertainment distribution initiative or will he go the Star way? He was earlier group CEO distribution businesses at Essel Group (he also headed the joint venture which had been set up to distribute the Zee TV and Turner channels in India).

     

    Sources indicate that the Turner channels will continue to be distributed by Zee Entertainment at least for now without any cross network bundling. So does that mean that the Zee and Turner joint venture arrangement will in effect not be revived?

     

    Most observers expect COO Gurjeev Singh Kapoor to move onto the Star distribution team. Gurjeev began his media career with Zee and then went to Discovery before moving on to The OneAlliance as its business head. He was finally lured to lead Star Den Media services when it was set up as a joint venture between Sameer Manchanda’s DEN and Star India.

     

    The bets are out whether the Star Sports bouquet will be distributed by the Star India team or whether an independent team will be given that responsibility.  Most expect the former proposition to be realised.

     

    Industry observers state the Media Pro office in north Mumbai is a hub of activity with senior management working on splitting up the teams and also drawing up plans for recruitment wherever needed.

     

    “There is a lot of movement which is taking place currently, with some of the executives already going the Star India way,” says a source from the industry.

     

    MSOs and cable TV operators expect the two new teams to start approaching them soon with new packages and offerings. Others however indicate that this could be a month or two away, until Star and Zee draw up their individual teams. Gurjeev had told indiantelevision.com around a month ago that most of the MediaPro contracts with both cable TV and DTH operators are slated to come up for renewal by sometime in April.

     

    If that is true then Zee Entertainment and Star India don’t have much time on their hands. And the teams have their task cut out for them.   

  • 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.

  • Jharkand high court gives Manthan breathing space

    Jharkand high court gives Manthan breathing space

    New Delhi: The Jharkand high court has directed Media Pro not to take any coercive steps against Manthan Broadband Services if the latter has a valid digital access system licence.

    The court bench at Ranchi issued a notice to Media Pro on a petition filed by Manthan Broadband Services against the information & broadcasting ministry and Media Pro.

    The matter was listed by justice Appeaser Kumar Singh for further hearing on 10 May.

    The court took note of the fact that the statutory forum, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) is not in session at present and is likely to sit only from 10 May.

    The petitioner said he has obtained the DAS licence (as also listed in the Ministry’s website) and is also complying with the orders of TDSAT, but Media Pro has been taking coercive steps against it. These included stopping the transmission of television channels.

  • Media Pro conducts raids against hotels in Orissa and WB for piracy

    Media Pro conducts raids against hotels in Orissa and WB for piracy

    MUMBAI: Media Pro Enterprise India, the joint venture between Star Den and Zee Turner, has said it has organised raids against local hotels/commercial establishments in Orissa with the help of Police for allegedly pirating signals of their channels distributed without any agreement.

    The company has filed an FIR against two Puri-based hotels and one Bhubaneswar-based hotel for illegally broadcasting Media Pro Channels. The raid was conducted after the hotels refused to pay heed to the notices by the company.

    A senior official of Media Pro stated, “These hotels have violated the provisions of the Trai tariff order which prohibits the unauthorized broadcast of Media Pro channels without any mutual agreement with Media Pro. It is mandatory for all commercial subscribers to reach a mutual agreement with the relevant broadcaster and/or their authorized cable/DTH operator, including hotels with ratings of three-star and above, heritage hotels or any other hotel, motel, inn and such other commercial establishments providing boarding and lodging and having 50 or more rooms.”

    “Such establishments have to take broadcast signals directly from the broadcaster unless the broadcaster has authorized any operator to provide such signals. In this case, these three hotels qualify as commercial subscribers of such a category and were taking unauthorised feeds from an unauthorised local cable network,” he added.

    The company also said that in similar raid, the police had initiated an FIR against one commercial property in Kolkata, seized Set Top Boxes (STBs) and the manager was put inside bars for five days for illegally broadcasting the signals.

  • Media Pro, Manthan in dispute over commercial terms

    Media Pro, Manthan in dispute over commercial terms

    NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (Tdsat) has directed Manthan Broadband Services Pvt Ltd to immediately pay a sum of Rs. 25 million to Media Pro Enterprise India Pvt Ltd within a period of one week and also pay an amount of Rs 27.5 million every month starting from 28 February pending further directions.

    Tdsat member P K Rastogi also directed that Media Pro will not give effect to its notices of 8 January and public notice issued on 11 January for disconnection of the signals of TV channels of Media Pro to the various networks of the Manthan Broadband, against which the petition had been filed by the latter.

    The dispute between the two parties relates to: reconciliation of accounts, request of the petitioner (Manthan) for downgradation of subscription fee in view of the migration of several operators, implementation of DAS in Kolkata and calculating the outstanding amount after accounting for the credit period.

    The notice had been issued under clause 6.1 of the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations 2012 and clause 4.1 of the Telecommunication (Broadcasting and Cable Services) Interconnection Regulations 2004.

    Listing the matter for directions on 21 March, Tdsat said the representatives of both the parties should meet to reconcile their accounts within two weeks. Media Pro may file its reply within 10 days along with ledger statements and rejoinder can be filed by Manthan within 10 days thereafter.

    Media Pro had issued notice on 4 January demanding an amount of Rs 34.71 million for Digital Addressable Systems and non-DAS areas of Kolkata and an amount of Rs 100.84 million from various non-DAS head end in East zone.

    But Manthan submitted that the account maintained by the Media Pro was always faulty and being made up for the purpose of putting pressure on the petitioner to pay over and above the agreed amount and re-negotiate the agreement to give growth to the respondent.

    It was also pointed out by Manthan that DAS has not been implemented in Kolkata due to law and order problems. However, Media Pro counsel contended that DAS commenced in Kolkata beginning 1 November 2012.

    According to a statement handed over by the counsel for Media Pro during hearing, an amount of Rs 121.4 million is to be paid by Manthan for subscription up to February 2013. If 60 days credit period is allowed in terms of the agreement, the subscription amount up to November 2012 becomes payable by 31 January which is Rs 122 million according to the statement by Media Pro.

    Manthan has paid an amount of Rs 62.7 million and Rs 35 million in December 2012 and February 2013 respectively. However, it is stated that the cheques for an amount of Rs 36.6 million were dishonoured. Tdsat noted that Manthan has to pay around Rs 60 million up to 31 January, if the statement by Media Pro is relied upon.

  • Media Pro deactivates Asianet channels in Kerala

    Media Pro deactivates Asianet channels in Kerala

    MUMBAI: The war between the Kerala cable operators and Media Pro Enterprise India, the distribution JV between Star Den and Zee Turner, is out in the open with the latter deactivating all its channels alleging non-payment of subscription fee.

    Media Pro, which aggregates and distributes Zee, Star, NDTV and Turner bouquet of channels in India, said it has been facing severe issues from a certain group of local cable operators in the state.

    A group of cable operators are creating unwarranted problems for Media Pro that has hampered the smooth telecast of channels across the state, Media Pro said.

    These cable operators have not paid their subscription fee for the bouquet of channels distributed by Media Pro more than a year now, Media Pro alleged.

    "Media Pro was forced to take this strong decision of deactivating all the channels after numerous reminders and notices failed to evoke any response from these operators," the company said.

    Media Pro also accused the "group of operators" of spreading rumours on ground by telling the consumers that they have to pay a very high amount if they want Media Pro channels when the fact is that it is not receiving the subscription fee that is being collected on the ground.

    However, in reality, these operators are catering to millions of households across the state and are paying only a miniscule amount of subscription fee collected per household to Media Pro, the company alleged.

    A senior official of Media Pro stated, "Few operators are spreading rumours that are misleading the viewers that they will have to pay higher subscription fees if they wish to view our channels which are absolutely not true. These operators retain a lion‘s share of all the subscription fees that they collect from the viewers and do not pay what is rightfully due to us. Despite repeated reminders and meetings to resolve the issue, we have received no response from these operators which has in turn forced us to take this tough decision of disconnecting the channels."

    "As a company we remain committed in doing our best to protect the interests of the viewers in particular. Once we receive the needed support from these operators we will be pleased to be able to restore the channels to our customers," he added.

    The Media Pro action follows a protest march by Kerala Cable Operators Association under Kerala State Committee of Communist Party Secretary Pannian Raveendran from Kasargod and Wayanad to pressurise the media distribution major.

    Contrary to Media Pro statement, the KCOA said they have stopped broadcasting Asianet, Asianet Plus and Asianet Movies from the Asianet Group from 11 November. The cable operators have alleged that Media Pro is asking operators to pay unreasonable old dues.

    The KCOA, which has 3,000 cable operators under its belt, said that the operators have an agreement with Asianet while the distribution of these channels was taken over by Mediapro later. The operators alleged that the Media Pro decision is aimed at helping DTH operators and cable operators affiliated to the broadcasters.

    "Mediapro started pressurizing the independent operators to make the payments for all the channels they are distributing for which the payment was not collected from the end users. We fear their motto has been to include other nationwide channels in to their fold, increase the rates and thus help DTH companies in which they have direct interest (Tata Sky and Dish TV). They are also promoters for Cable Operators like Hathway (ACV in Kerala), City Cable and Den," KCOA claimed.

    The electricity board has imposed the annual per pole rent from Rs 130 to Rs 311 which has made things difficult for the operators, who need 2 to 3 Poles for urban areas and 7 to 8 poles for rural areas to take the signals to the end user.

    The COA State Committee has urged the I&B ministry and Trai to interfere in the matter.

  • Dish TV Q1 net hurt by forex loss

    MUMBAI: India’s leading DTH operator, Dish TV, has narrowed its net loss in the fiscal first-quarter to Rs 323 million compared to a net loss of Rs 490 million in the trailing quarter.

    Ebitda stands at Rs 1.56 billion, up from Rs 1.44 billion in the preceding quarter, as the company has cut down on marketing costs. The content cost has seen 2.9 per cent rise and is in line with the industry expectation. But a deal with Media Pro, which distributes Star, Zee and Turner channels, is expected this month which would up the content cost.

    “Net loss of Rs 323 million was adversely impacted by foreign exchange loss of Rs 138 million. At the cash flow front, Dish TV continued to be free cash positive for the second consecutive quarter,” said Dish TV managing director Jawahar Goel.

    Operating revenue has seen a marginal decline (0.9 per cent), but Dish TV has seen subscriber growth while ARPUs (average revenue per user) have climbed from Rs 151 to Rs 156. With Dish TV taking a price increase of Rs 20 in the first week of July across all its monthly packs, the ARPU for this fiscal should rise to around 5 per cent.

    The churn rate has bettered to 1 per cent, against 1.1 per cent in the trailing quarter.

    Dish TV added 504,000 gross subscribers in the quarter ended 30 June, taking its total base to 13.4 million gross and 9.8 million net subscribers at the end of the quarter. The company is on track to achieve its target of 2.5 million new subscribers in the fiscal.

    “Churn sustained its downward movement, closing at 1% per month, while ARPU strengthened to Rs 156, mainly due to the price hikes taken previously.

    Efficiencies at the cost front helped enhance operating margins despite normalised lease rentals flattening the top-line growth. Enhanced offer fee, coupled with higher number of subscriber adds sequentially, maintained subscriber acquisition cost largely in line with the previous quarter,” Goel said.

    Dish TV’s subscriber acquisition cost (SAC) has jumped to Rs 2,145 compared to Rs 2,127 in the preceding quarter.

    Dish TV‘s operating revenue fell by 0.9 per cent to Rs 5.20 billion, compared to Rs 5.25 billion in the trailing quarter.
    Subscription revenue grew 5 per cent QoQ to Rs 4.5 billion on higher ARPUs. Carriage income fell to Rs 80 million, from Rs 130 million.

    Dish TV has controlled its expenses during the quarter which stood at Rs 3.64 billion, from Rs 3.80 billion in the previous quarter. This was due to a 49.6 per cent cut in advertisement expenses.

    The company spent Rs 135 million on advertising compared to Rs 268 million in the previous quarter. Marketing spends should go up substantially as the company guided an expenditure of Rs 1 billion this fiscal.