ITV

Tag: MSO

  • MIB directs erring MSOs to immediately furnish seeding data

    MIB directs erring MSOs to immediately furnish seeding data

    Mumbai: The ministry of information and broadcasting (MIB) has directed erring Multi System Operators (MSOs) to immediately enter/update their seeding data on the ministry’s MIS (Management Information System).

    As per the official advisory dated 21 February, despite repeated reminders, many MSOs are not entering/updating their seeding data, i.e the number of active set-top boxes on their network, on the ministry’s MIS. The information regarding the number of cable TV subscribers is considered essential for policy decisions/regulatory issues etc, it said.

    It was further stated that failure to submit/update seeding data on MIS will be considered a violation of Rule 10A of the Cable Television Networks Rules 1994 and may result in cancellation/suspension of MSO registration granted

    Rule 10A of the Cable Television Networks Rules 1994, binds, inter-alia, every MSO to give such information as may be sought for by, inter-alia, the central government within such period and such form as may be specified.

  • Broadcasters promoting pay-TV on Free Dish are shooting themselves in the foot – Saurabh Sancheti

    Broadcasters promoting pay-TV on Free Dish are shooting themselves in the foot – Saurabh Sancheti

    Mumbai: With a 40 million base, which is constantly growing at the cost of Pay-TV, Prasar Bharati’s DD Free Dish is not just another competing platform, but considered by many as a precursor to the success of Free Ad-Supported Television (FAST) model in India. The implementation of NTO 2.0 is going to further intensify this cannibalisation. While broadcasters are riding the FTA wave, some fairly and some in an unfair manner, distribution platform owners are pushing for regulatory intervention and new ways to tackle the challenge.

    Saurabh Sancheti – Business Head | Hathway GTPL,   has long been advocating and working towards building a ‘rupee-a-day’ product that can take on Free Dish. At the Video & Broadband Summit organised by Indiantelevision.com on 19 January, he outlined the approach that is needed to arrive at this solution.

    “Out of the country’s 280-300 million households, nearly 200 million own a television set, and of this, only about 120 million have Pay TV. MSOs and broadcasters have to work together on wooing the remaining 80 mn base with a customised product. LCOs too need to reinvent themselves by adopting digital technology that serves their customers better,” he said. Sancheti is confident that if all players can collaborate on it, not only can the economics be worked out, but the pay-TV basket can be grown by at least 30-40 million in the next couple of years.

    Cog in the wheel

    In the current scenario, (short-term) gains and survival concerns are driving the top and bottom of the pyramid. Elaborating on what he terms as “death by annual plan”, Sancheti remarked, “Broadcasters promoting Pay-TV on Free Dish are shooting themselves in the foot. No matter how big you become on Free Dish, the platform cannot be monetised.”

    “They need to understand the possibilities of working with the DPOs. As people’s income levels increase, they will spend more on subscriptions. Those who join at a Free Dish equivalent pricing today, can become our regular and even premium customers tomorrow. But instead of thinking about taking customers up the funnel, and about the long-term growth of pay-TV, they are worried about their annual and quarterly targets,” he rued.

    Further, he noted that with infrastructure sharing and cheaper bandwidths making it possible to achieve last-mile delivery to the level of a gram panchayat at very low costs, distribution networks will also have to re-engineer themselves to align with the broadband revolution that’s underway.

    It’s obvious that the postulated rupee-a-day product cannot run in the same high-touch manner as the current base is running and hence the requirement of “lot more digital, lot more long-term packs and lot more of DIY”.

    Would that mean LCOs losing control of the last mile and eventually dropping out of the value chain? Commenting on the long-standing issue, Sancehti stated, “The primary models have failed, and MSOs realise that they cannot reach out to consumers directly, but only through the LCOs. That being said, today, consumers want more control. This is the reason why DTH, which has declined globally, is still surviving in India. It is the only medium that allows you to do everything yourself; from channel selection to bill payments. So, the risk of being eliminated is clearly there, however, it’s not because of the large players but the LCOs’ unwillingness to reinvent.”

     The next big opportunity

    Sancheti believes that the linear TV model still has a lot of scope left. Out of the 200 million TV-owning households in India, the top tier of 20-25 mn has both pay-TV and fixed-line connectivity. Their number is growing, and so is their OTT consumption.

    The second set of 100 mn households, which is 70 per cent urban, consumes linear TV on the large screen and OTT on private/mobile screen. It will gradually go the 25 mn way.

    The remaining 80 million (TG for the rupee-a-day product) are the ‘cord nevers’ who are subscribed to either analogue or Free Dish today. As their income levels increase and more content and services suitable for them are made available, they will move up the ladder into the pay-TV base.

    Sancheti, however, finds the 100 million ‘TV nevers’ equally if not more promising than the 80 mn cord nevers. “At Den, Hathway, and GTPL, we believe this is where the opportunity lies to as much as double our base. As the economy progresses, spends on services will increase exponentially, and we are reinventing ourselves for the change; whether it is by way of working on connectivity/network or by value engineering the set-top boxes that begin at an 800 Rupees price point today.”

    Pinpointing the 100 mn challenge and opportunity, he added, “It’s not like the cable hasn’t reached the ‘villages’. The problem is that it has found only 500-odd homes/subscribers there. The art is in doubling this number by offering the right product and pricing.”

    Impact of NTO 2.0

    Winding up the discussion with a word on the present state of regulation and the impact of NTO 2.0, Sancheti observed that “whatever rationalisation had to happen in terms of channel selection at the customer end has already happened with NTO (2019). Beyond a point, more à la carte will only do more harm. With NTO 2.0 we are looking at a 25-30 per cent increase in prices as per published broadcaster RIOs. India being a price-sensitive and value-seeking market, this will further pressurise the PayTV base, leading to more people opting out of it.”

     

    Please Note : “The views expressed are personal and do not represent the views of Reliance Industries Limited or any of group companies”

  • VBS 2022: Getting ready for the post-pandemic world

    VBS 2022: Getting ready for the post-pandemic world

    Mumbai: Indiantelevision.com is back with the 18th edition of the Video & Broadband Summit (VBS). The day-long summit will be held virtually on 19 January 2022, from 10.00 am to 5.00 pm. VBS 2022 is co-powered by broadpeak. Disney Star is presenting partner and NxtDigital is the summit partner.

    This year’s Video & Broadband Summit will provide a platform for industry and opinion leaders to discuss key issues being faced by the television industry as a result of the Telecom Regulatory Authority of India (Trai)’s New Tariff Order 2.0, broadband-fuelled growth of digital platforms, and the impact of cord-cutting on DPOs, as well as the possible ramifications of the impending 5G launch that has already created a stir among broadcasters and distributors.

    Some of the broad themes to be covered include Rising Cost of Video Entertainment, Changing Business Models and Revenue Models, Value-Added Services, and getting back to basics in a Post-Pandemic World. VBS 2022 will also delve into the concerns and opportunities around the 5G Teleco Threat, Virtual MVPDs, Cable TV’s Technology, and Back-End Challenges, DPO’s Marketing Drive, and the gradual expansion of Over the Top (OTT) Platforms.

    The summit will begin with an introduction by Indiantelevision.com Group founder CEO and editor-in-chief Anil Wanvari, followed by a presentation on the rising cost of video entertainment.

    First on the agenda is a fireside chat with M&E consultant Anuj Gandhi. During the next session moderated by former senior VP Star TV and CEO KCCL Shaji Mathews, Fastway’s Prem Ojha, Travelxp’s Prashant Chothani, Asia Satellite Telecommunications Holdings’ Rajdeepsinh Gohil, Shemaroo Entertainment’s Sandeep Gupta, BBC Global News’ Sunil Joshi, and Zeel’s Anil Malhotra will share their thought on ‘Getting Back to Basics and to a Post Pandemic World’.

    Lined up next is another fireside chat between NxtDigital MD and CEO Vynsley Fernandes and Anil Wanvari. Thereafter Gurjeev Singh Kapoor (Star & Disney India), Vynsley Fernandes, Amit Arora (Indiacast Media Distribution), Sambasivan G (Tata Sky), Ashish Pherwani (E&Y), and SN Sharma (DEN Networks) will delve on ‘Shaping the growth of linear TV distribution and subscription’.  

    In the post-lunch session, a panel consisting of MN Vyas (founder-director PlanetCast), Abhishek Gupta  (vice president IT, Dish TV), Yann Begassat (business development director, Broadpeak), and Salil Thomas (general manager & head ACV & Technology,  Asianet Satellite Communications Ltd) will demystify ‘The 5G Opportunity’ for the viewers. The talk will be moderated by Satcom Industry Association – India, senior director technology and policy Rajeev Gambhir.

    Following a fireside chat with Jio Platform’s Saurabh Sancheti, the event will wrap up with a discussion on ‘Delighting the Indian Consumer – Challenges & Opportunities’ between Rajib Mukherji (EVP-Strategy, IndiaCast Media Distribution Pvt Ltd.), Nagesh Chhabria (promoter, Metrocast), Rouse Koshy (chief operating officer, NXTDigital) and Yatin Gupta (senior VP, GTPL).

    The Video & Broadband Summit (VBS) 2022 will be live-streamed on Indiantelevision.com’s social media handles.

    For more details: https://www.videoandbroadbandsummit.com/ 

  • #Retrace2021: The year of regulatory challenges and no TRPs for news channels

    #Retrace2021: The year of regulatory challenges and no TRPs for news channels

    Mumbai: The year 2021 began with a rather chaotic legacy handed over by 2020. In the aftermath of the TRP Scam, TV ratings for the news genre remained suspended throughout the year. The legal tussle between Telecom Regulatory Authority of India (Trai) and broadcasters over the rollout of the New Tariff Order (NTO) 2.0 continued to dominate the headlines.

    Adding to this, was the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules, 2021), announced in February which set the ball rolling for regulation of digital and social media. This was followed by the Cable Television Networks (Amendment) Rules, 2021 (CTNA 2021) and the proposed amendments to the Cinematograph Act, 1952, all of which sought to regulate content across media including digital, and align it with ‘public interest’.

    Also Read: SC refuses to grant interim protection to Tandav makers

    The year began with the controversy over the Amazon Prime web series ‘Tandav’ which became the tipping point for the government which was already deliberating the regulation of digital media including social. The show and its star cast was accused of hurting the religious sentiments of a particular community prompting the show’s director Ali Abbas Zafar to issue an unconditional apology on social media. The spate of FIRs and threats continued unabated despite the omission of two ‘objectionable’ sequences, and apologies from the platform and its then country head Aparna Purohit.

    Also Read: Tandav : And the future of storytelling

    While the hitherto pampered OTT-verse was bracing itself for government oversight, the pay-TV universe continued to be cannibalised by it and DD Free Dish at the top and bottom tiers. Even as distribution players worked on diversifying their offerings to embrace the imminent digital takeover and on building new ones to challenge Free Dish, they kept pushing for regulatory interventions to tackle the issue at its core. Though well within its rights to strive for survival, in the process of manoeuvring these challenges, the industry ended up creating another flashpoint between the regulators/government and itself.

    2021 closed with a trailer to the next big fight with Trai questioning the availability of linear channels on OTT and telco apps which, it said, is in violation of Clause 5.6 of Policy Guidelines for Downlinking of Television Channels dated 5 December 2011. Broadcasters, on the other hand, invoked section 37 of the Copyright Act 1957 known as Broadcast Reproduction Right (BRR) to justify their channels’ presence on their own OTT platforms and third-party aggregator apps. Also because they are not licensees under Trai Act, they do not fall under the scope of Trai Act or Interconnection Regulations or Clause 5.6 of Downlinking guidelines.

    Here, we take a look back at the regulatory events and challenges that re-defined the Indian TV industry in 2021.

    Legal tussle over NTO 2.0

    One of the biggest developments of the year was the pronouncement of the Bombay High Court order on the NTO 2.0 case on 30 June. After a legal tussle that lasted over a year, Trai had managed to get a green signal from the court on the implementation of the amended rules. While the HC upheld the constitutional validity of NTO 2.0, it termed one of the twin conditions “arbitrary”, according to which the maximum retail price of an a-la-carte channel could not be more than one-third the maximum rate of a channel in the bouquet.

    Also Read: NTO 2.0 Verdict : Who Wins What?

    Following the notification of NTO 2.0 in January 2020, several broadcasters under the umbrella of the Indian Broadcasting and Digital Foundation (IBDF) and a couple of other private channels challenged the amendment terming it “arbitrary and in violation of their fundamental right”. The NTO 2.0 prescribed linkage between a-la-carte price and bouquet via the imposition of twin conditions on bouquet pricing, and reduction in price cap from Rs 19 to Rs 12 for pay channels, thereby incentivising a-la-carte alone.

    Having recognised the adverse impact of NTO (2019) on all stakeholders including consumers, broadcasters and distributors refused to accept the judgement and challenged it further in the Supreme Court in July. After a series of adjournments, the apex court, on 30 November, posted the matter for hearing on 15 February 2022.

    Meanwhile, in November, Trai moved the deadline for implementation of NTO 2.0 from 1 December 2021 to 1 April 2022. Distribution platforms like DTH and cable will now have to seek subscriber choice till 31 March 2022, it said. The deadline for broadcasters to come up with their new reference interconnection offers (RIOs) and simultaneously publish the required information about channel and bouquet offerings, as well as their MRPs on their websites was also extended to 31 December.

    Also Read: Trai extends NTO 2.0 implementation to 1 April 2022

    Several large networks including ETV, Discovery Communications, Sun TV, Times Networks, ZeelL, SPNI, and others had come out with their new RIOs in October-November. In what looked like a refusal to back down, the broadcasters preferred to pull their popular channels out of the bouquets instead of reducing the price to Rs 12. Their move flies in the face of the regulators’ assertion and intention of preserving the interest of customers.

    Despite the short-lived benefits of incentivising à la carte and changes in NCF for broadcasters and distributors, the attempt to regulate channel pricing was soon recognised by all stakeholders as being counterproductive. Aside from having an overall negative effect on reach and viewership for broadcasters, it led to the shutting down of many niche channels which became inviable as a result of NTO implementation. The impact for distributors was felt when customers gravitated towards either OTTs or Free Dish to counter the increase in their monthly subscription bills.

    Also Read: DTH operators write to Trai over broadcasters offering pay channels on DD Free Dish

    The implementation of NTO 2.0 will further hasten this migration. Foreseeing the detrimental scenario, Direct-to-home (DTH) service providers including Tata Sky and Airtel Digital TV wrote to Trai in September asking the regulator to address the issue of broadcasters making their pay channels available on DD Free Dish. Alleging that this goes against the current tariff regime which mandates the designation of channels as either pay or FTA and prohibits their bundling together, they once again raised the demand for such designation to remain constant across distribution platforms.

    Also Read : There needs to be a level-playing field : Tata Sky CEO Harit Nagpal

    Further, in a letter dated 28 December written to Prime Minister Narendra Modi, the Delhi-based All Local Cable Operators Association alleged that the Trai and broadcasters are “forcibly pressurising” MSOs to implement the new tariff order, which will lead to cable TV operators, national MSOs and independent MSOs incurring huge losses. The NTO 2.0, if implemented, will lead to the unemployment of lakhs of families connected with the cable TV industry, it said. Several other representative organisations have also raised the issue with the government and regulators frequently.

    Also Read : Trai vs Broadcasters : Impact could be larger than expected

    IT Rules, 2021 & Cable Television Networks (Amendment) Rules, 2021:

    The introduction of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 by the ministry of electronics and information technology (MeitY) in February sought to regulate social media, digital platforms, and streaming services in the country through a three-level grievance redressal mechanism.

    The “soft-touch regulatory architecture” comprised Level I – self-regulation by broadcasters, Level II – Self-regulation by registered self-regulating bodies of the broadcasters, and Level III – oversight mechanism by the central government. Later in June, the government extended this framework to Cable TV with the Cable Television Networks (Amendment) Rules, 2021.

    Also Read: MIB amends Cable TV rules for redressal of broadcast related complaints

    Also Read: Trai issues new consultation paper to regulate monopoly in Cable TV services

    The new regulations, along with proposed amendments to the Cinematograph Act, 1952, brought together all forms of media in the country barring newspapers under the three-layer regulatory mechanism. Consequently, they also ran into troubled waters with broadcasting associations like NBA and IBDF and some independent players filing several petitions in various high courts.

    News Broadcasters Association (NBA) president Rajat Sharma wrote to the then I&B minister Prakash Javadekar requesting the exclusion of digital news platforms owned and run by traditional news media from the purview of the provisions of the new IT Rules, 2021. In July the organisation approached the Kerala HC with a writ petition contending that the oversight mechanism gives the executive “unfettered, unbridled and excessive powers to regulate the content of TV channels of news broadcasters.”

    Also Read : No exemption for mainstream media from IT rules

    The IBDF, Sun TV Network, and SJ Clement filed separate petitions challenging the constitutional validity of Part III of IT Rules 2021 and CTN Amendment Rules 2021 in the Madras high court.

    In May, IBF had renamed itself as IBDF bringing all digital/OTT platforms under its purview. It also announced plans to form a new subsidiary – an industry-led Self-Regulatory Body (SRB) called Digital Media Content Regulatory Council (DMCRC) to serve as a second-tier mechanism at the appellate level specifically for digital. The DMCRC is similar to Broadcast Content Complaint Council (BCCC) which IBF had successfully implemented for the linear broadcasting sector in 2011. 

    Also Read: Former SC judge Justice Vikranjit Singh Sen appointed chairman of IBF’s new self-regulatory body

    Overhaul of TRP ratings

    The committee on TRP ratings formed by the government in the aftermath of the 2020 TRP Scam came up with its recommendations pushing for the formation of multiple rating agencies in competition to Barc India and creating a specialised regulator to oversee all of them. The 39-page report submitted by the committee early this year was shared with Broadcast Audience Research Council (Barc) India and other broadcasters in November to take the discussions forward.

    Led by Prasar Bharati CEO Shashi Shekhar Vempati, the four-member team also included – IIT Kanpur, professor of statistics, department of mathematics and statistics, Dr Shalabh; C-DOT executive director Dr Rajkumar Upadhyay; Decision Sciences Centre for Public Policy professor Pulak Ghosh.  After consultation with stakeholders such as Barc India, MDPL, Zappr Media, Nielsen India, and Tata Sky AMS, the committee had issued several specific and sweeping recommendations on the technical aspects of TV rating measurement in India.

    Observing a broad consensus among industry stakeholders in favour of leveraging return data capabilities, it recommended that RPD should be made mandatory for set-top-boxes (STBs) deployed by distributed platform operators (DPOs). The collection of viewership data by DPOs is to be governed by privacy norms prescribed by the government/regulator. 

    Also Read : Govt committee seeks to set up specialised regulator for media ratings

    The report noted that crowdsourcing approaches could be economical alternatives to RPD and should be open to rating agencies to enrich panel-based measurement. The committee also batted for an open data ecosystem allowing academics and independent researchers access to algorithms and raw datasets to analyse, validate and enrich them.

    The television rating system in India had come under scanner in October 2020 when Mumbai Police claimed in a press briefing that they have probed a case of manipulation of TRPs and found some incriminating evidence. The police said the accused were allegedly bribing the households to keep a particular channel running, leading to several arrests. Three news channels, Republic TV, Fakt Marathi, and Box Cinema were named in an alleged TRP tampering scam. BARC had also temporarily suspended the publishing of weekly data for news channels, which remains in limbo to date.

    Also Read: MIB to implement TRP ratings recommendations soon: Anurag Thakur

    Making satellite-broadband services cheaper

    The cost of satellite-broadband services continues to remain on the higher side in the country, posing a major challenge to its wide adoption by the end-users. The issue was also taken by India’s telecom regulator which is looking for ways to drive down the rates of satellite broadband. Early this year, Trai also floated a discussion paper and sought views to make satellite communications more affordable in the country. 

    Among other issues, Trai also sought views on whether satellite service licensees should be allowed to obtain bandwidth from foreign satellites for providing IoT connectivity. Also, whether any specific or all bands should be permitted for provisioning satellite-based IoT connectivity. It also invited suggestions on whether a new licensing framework should be proposed for the provision of satellite-based connectivity for low-bit-rate applications or the existing licensing framework may be suitably amended to include the provisioning of such connectivity.

    Also Read: Trai seeks suggestions to make satellite broadband services affordable

    5G roll-out and spectrum clash:

    Earlier in the year broadcasters expressed concern over the rollout of 5G at a near-clashing frequency. Their apprehension was that the spectrum range of 3.0-3.6GHz identified for 5G does not allow for a buffer or ‘guard band’ before satellite television operates at 3.7 to 4.2 GHz. This could lead to disruption in television and radio services in the country. Even though welcoming of 5G has held great opportunity for the M&E industry in the era of convergence, broadcasters said that in the event they had to move to a higher frequency, the government should intervene with subsidies to offset the cost incurred.

  • Right time for the LCO ecosystem to reinvent itself: Jio Platforms’ Saurabh Sancheti

    Right time for the LCO ecosystem to reinvent itself: Jio Platforms’ Saurabh Sancheti

    Mumbai: Saurabh Sancheti, the young and dynamic CFO of Jio Platfroms, and one of Fortune India’s 40 under 40 has been instrumental in scripting the success story of Reliance’s Cable business post its acquisition of two largest cable TV and broadband companies in the country – Hathway Cable & Datacom and DEN Networks for a sum of Rs 5,230 crore in October of 2018.

    At the recently concluded Apos India Summit, Sancheti discussed the transformative journey of the two acquired assets, and the challenges and opportunities for Pay TV distribution industry in the light of regulatory and technological changes.

    At the time of acquisition, and much after that as well, Reliance’s Cable business was running at an operating loss. Tasked with bringing about a disruption, Sancheti went on a brainstorming spree to figure out its strengths and problems areas. After several talks with top executives, Local Cable Operators (LCOs) as well as customers, he concluded that the one thing Cable needed was operating cash flows to be positive.

    “That is fundamental, because if you scale up a business which is losing on a unit basis, then you are only scaling up the losses,” he said. “The singular problem that I could pinpoint here was that we were not collecting whatever we billed. And if we could do that, we were home. No one disputes the bill per se; it was all about collection. That’s where I suggested moving Cable to prepaid – a rather ‘blasphemous’ idea for that time.”

    The impact was such that operating cash flows swung from a negative territory to a positive Rs 800 crore per year. Within six months most of the competition also turned to the prepaid model, bringing about a systemic change in the ecosystem.

    Since then industry players have collaborated on various initiatives and models. “The sector which was plagued with a lot of trust issues and fights has, today, come together under the umbrella of the All India Digital Cable Federation (AIDCF) which has become a de-facto platform for constructive discussions.  The AIDCF is also playing a proactive role in conveying our concerns to the government and regulatory bodies,” shared Sancheti.

    Elaborating on the regulatory challenges and their impact on the business currently as well as in the coming years, he remarked, “While a lot of changes in regulations have taken place in the past few years, the crux of it all is that the Trai is advancing in a direction which is more pro-consumer; whether it’s more consumer choice, more a-la-carte, or lesser bundling, the underlying intent is the same. This brings a lot of complexity for the business.”

    Giving a perspective in numbers, he added, “Any large e-commerce company which is handling Stock keeping units (SKUs) from multiple businesses and industries tops out a 100-150,000 SKUs. Today we are serving more than one million unique combination or SKUs to our customers at Den, Hathway, and GTPL. This is coming from an industry which until two years back (before the acquisition) was serving less than 100 SKUs. So, there has been a sea change in offerings as well as technology.”

    But even as the regulator works towards bringing the customer back in focus, there are apprehensions about the mindset and workings of the industry leadership which doesn’t seem to have been very customer-centric historically. Sancheti contended that the situation is changing, and today, not just the top leadership and MSOs, but many LCOs too have a customer friendly and progressive outlook.

    The advent of OTT and the allegedly predatory expansion of DD Free dish universe have posed major challenges to Pay TV distribution in the past couple of years. Current realities notwithstanding, Sancheti believes that there exists a huge opportunity.

    “Out of the country’s 280 million households, nearly 200 million own TV.  Of the 200 million, only about 120 million have Pay TV. So, clearly no other market has such potential as India. The problem is that this base has largely remained stagnant over the years primarily because of two factors. At the higher tier it is the advent of OTT, and at the lower, it’s DD Free Dish which has grown rapidly in last four-five years,” he added.

    There’s also a third challenge that he recognises as needing quick intervention – the dismally low earnings of Cable operators. “In the prevailing circumstances where not just competition from new technology, but even regulatory hurdles like NCF cap are working against them, an LCO takes home on an average Rs. 15000, which is just slightly above the minimum wages. Again, this is just a fraction of what they used to earn previously.”

    The good thing is that all players in the industry are now aware of these challenges, and what needs to be done. The question is ‘how’.

    Sharing his approach and vision for tackling these issues, Sancheti stated, “As an MSO we are trying to work on a low-cost rural market product and the idea is that ‘can we have a price point which can truly challenge Free Dish’. The North Star here is ‘rupee-a-day’ product. If we can have it, we can get at least 40-50 million homes into the Pay TV base.”

    One of the ways of getting to it is reinventing the entire LCO ecosystem as a ‘reseller of services’, he observed. “Our biggest strength as MSOs and LCOs is the ‘last-mile access’. As distributors we ‘own that home’ and the trust and relationship shared with it, has in many cases, been built over decades. If we can leverage it to become resellers of services like OTT and broadband, the market potential of 40-50 million can be unlocked.”

    In addition to solving the problem of LCO incomes, this ‘integrated platform play’ will help the industry to achieve the bigger objective of collectively arriving at the hypothesised challenger product to take on Free Dish.

    “Live TV on a standalone basis is not practicable anymore. So, we clearly need to act as distributors of more services. This will divide costs between businesses, thus making a lot of under-connected and unconnected homes more viable. Ultimately, all of this will tie back to our ‘rupee-a-day’ product,” elaborated Sancheti.

    Signing off on a very positive note he said, “We are standing at an inflection point where the entire LCO model is at the right stage to be reinvented. There’s no market more attractive than India. I strongly believe that it has a long-term potential of at least 170-180 million Pay TV base; it’s doable. An 80 million broadband base is also doable, all within three years.”

  • Nxtdigital launches 40 new Nxthubs across India

    Nxtdigital launches 40 new Nxthubs across India

    Mumbai: Integrated digital distribution company Nxtdigital Ltd (NDL) has launched 40 Nxthubs across India and unveiled a value-added app for its last-mile owner (LMO) on Thursday.

    Following the launch of its pilot in Ranchi, these Nxthubs were electronically launched at an event in Hyderabad across 13 states including Andhra Pradesh, Telangana, Gujarat, Uttar Pradesh, Maharashtra, and Karnataka, amongst others.

    Each Nxthub is owned and operated by NDL and is equipped with the latest technology comprising an ADDS or advanced digital distribution system – to distribute over 650 digital TV services received via satellite to LMOs and their customers. The Nxthub plug-and-play model eliminates the need for LMOs to invest in head-end and related technology. Besides video and broadband, these Nxthubs are future-ready to offer a slew of additional digital services including OTT and WiFi.

    According to the company, each location has been strategically chosen to augment the company’s footprint across the country, which today stands at over 4,400 pin codes, as well as focus on markets where LMO growth is constrained by the ability to invest. For LMOs, this plug-and-play solution facilitates them to go ‘digital’ literally overnight, offering their customers over 650 digital television channels and other digital services including broadband.

    NDL has planned a total of 100 such Nxthubs for this financial year that will further strengthen the NDL footprint across the country.

    “One of the key principles of the Hinduja Group is ‘partnership for growth’. After 2.0 saw the launch of headend-in-the-sky (HITS) to connect LMOs in even the most remote locations through the only satellite-based cable TV platform in India; 3.0 focuses not just on strengthening the overall ecosystem we have built, but harnessing the convergence of technologies – to be delivered through a national network of Nxthubs,” said Nxtdigital Ltd MD and CEO Vynsley Fernandes. “Video and broadband are only the start of the digital highway of services that we have developed for roll-out, backed by a robust suite of innovative apps developed by service providers, exclusively for our LMOs and subscribers.”

    Nxtdigital regional head for Andhra Pradesh and Telangana SY Srikumar said the company is proud that 16 of the 40 Nxthubs are in Andhra Pradesh and Telangana alone. “This national launch from Hyderabad reflects our commitment to LMOs here and the subscribers who expect a high quality of service. We believe this unique model will help stimulate growth and we have already lined up not just new products but also many more Nxthubs across the region,” he added.

    NDL also announced the launch of its new APIs or application programme interfaces for its Nxtdigital HITS service as well as a pre-integrated mobile app solution from ‘Mobiezy’ – under its VAAP program or ‘value-added apps for partners’. These APIs are designed to provide LMOs a way to develop or integrate their own subscriber mobile applications to automate activation/deactivation of subscriber packages directly into NDL’s systems, thereby enhancing the user experience it announced on Thursday.

    “This initiative will empower subscribers to pay online and subscribe to the channels they want to watch and get it activated on their TV sets in real-time without any delay. Without needing to undertake any software development, LMOs can approach Mobiezy for their pre-built and pre-integrated solution that uses Nxtdigital’s new APIs and can be up and running with their own mobile apps within just a few days,” said Nxtdigital group chief technology officer Ru Ediriwira.

    NDL has also been working on an infrastructure sharing model which will help other MSOs reduce operating costs, improve quality of service and extend services to hitherto unviable markets, especially rural; by riding on the HITS platform that covers all of India.

  • SITI Networks’ Q1FY22 Operating EBITDA jumps 33.1% to Rs 537 Mn

    SITI Networks’ Q1FY22 Operating EBITDA jumps 33.1% to Rs 537 Mn

    New Delhi: SITI Networks, an Essel Group company and multi-system operator (MSO), has released its consolidated audited financial results for Q1FY22 ending June 30.

    In line with its profitable growth strategy, SITI has maintained persistent elevation in operating EBITDA reporting 33.1 per cent growth over Q4FY21. The company reported operating EBITDA of Rs 537 million in Q1FY22 as against Rs 403 million q-o-q basis.

    The company’s operating EBITDA margin expanded to 14.8 per cent in FY22 against 10.4 per cent in the previous quarter. This was achieved through building up operating efficiencies and strict control over costs.

    Total revenue (excluding activation) stood at Rs 3,619 million in Q1FY22. The company earned a subscription revenue of Rs 2,378 million in Q1FY22.

    SITI Broadband’s net base increased 22 per cent y-o-y to Rs 2.06 lakh at the end of Q1FY22. SITI Broadband’s Q1FY22 revenue also surged 25.2 per cent y-o-y to Rs 276 million.

    SITI Networks CEO Anil Malhotra said, “SITI had a good quarter on the back of our focus on operational efficiencies, and strict control over expenses. Our operating EBITDA surged 33.1 per cent q-o-q to Rs 537 million and operating EBITDA margins expanded to 14.8 per cent in Q1FY22. SITI Broadband’s base increased 22 per cent y-o-y to Rs 2.06 lakh while its revenue surged 25.2 per cent y-o-y to Rs 276 million in Q1FY22.”

    “This quarter provided us with the necessary momentum to further drive our efficiency focus throughout FY22. We intend to focus on it along with solid EBITDA and margins growth, in line with our core strategy of profitable and sustainable growth,” he added.
     

  • Cable operators take steps to ease vaccination process for staff

    KOLKATA: Despite the imminent health risks, the cable industry employees have continued to work on the frontlines all through the pandemic. Now with vaccination drives in full swing across the country, leading cable operators, too, are taking a step ahead and getting their employees inoculated. Apart from organising special vaccination drives in some cities, they are also helping employees schedule slots wherever the camps could not be set-up.

    NXTDigital organised a three-day vaccination camp at its head office in Mumbai in conjunction with Hinduja Hospital last week for its workforce in the city. The company extended this drive to also include employees’ families.

    “The philosophy has always been to hold the good health and safety of its employees as a paramount endeavour, something that we strived hard for since the pandemic began. NXTDIGITAL, therefore, set up an Employee Health & Safety (EHS) team to help our personnel and their families across the country impacted by COVID, including organising hospital treatment, access to critical medication and the like,” NXTDigital MD & CEO Vynsley Fernandes said.

    The EHS team is working with NXTDigital employees all across the country, not just supporting personnel to get vaccinated, but also providing every possible assistance to enhance their health and safety.

    GTPL Hathway also arranged vaccination drives for 45+ employees in many of its offices, with the help of state governments, GTPL Hathway cable TV head and chief strategy officer Piyush Pankaj said. However, the company could not organise such drives for 18-45+ due to shortage of vaccines. The human resources are helping employees to get the vaccinations scheduled, especially for people on the frontline. Teams are also trying to get the employees slots through government centres.

    On the other hand, Siti Networks could not organise the vaccination drive in one or two places given its pan-Indian footprint. But the MSO encouraged all employees to get vaccinated and reimbursed the vaccination cost, said Siti Networks group chief executive officer Anil Malhotra.

    Along with vaccination, the company informed that it would help employees procure PPE kits, masks whenever needed. It also imported oxygen concentrators to provide to employees if needed.

  • Siti Network content and carriage GM Rajesh Sharma succumbs to Covid

    Siti Network content and carriage GM Rajesh Sharma succumbs to Covid

    Kolkata: Ever since the pandemic broke, cable operators have been working on the frontlines to ensure uninterrupted cable TV and broadband service across the country. Several of them have battled the infection and the challenges that came along with it, while others succumbed.

    On Monday, another cable operator lost his life to Covid. Siti Network content and carriage GM Rajesh Sharma succumbed to the disease. He was 42 and survived by his wife and two sons in Delhi.

    According to his colleagues, Sharma was loved by everyone in the office for his lively presence. He was promoted to his current position last year during the pandemic. “He was a kind human being, always helpful. He was cooperative, and everyone liked him in the organisation. Unfortunately, we have lost him at such a young age. He had a long career in front of him,” said Siti Networks CEO Anil Malhotra as he condoled his demise.

    India is battling the worst-ever health crisis, with the second wave of Covid-19 taking a heavy toll on people across the states. On Monday, the country recorded as many as 2.22 lakh new cases, which is lowest since 15 April. India has lost 4,454 lives to the deadly virus during the last 24 hours and the death toll has surpassed the three lakh mark, making India the only country after the US and Brazil to record over three lakh fatalities. Tamil Nadu and Maharashtra remain the most impacted, with the highest number of new infections.

  • NXTDigital turns around its business with Rs 13.66 crore profit in Q4

    NXTDigital turns around its business with Rs 13.66 crore profit in Q4

    KOLKATA: NXTDigital has turned its business profitable by raking in Rs 13.66 crore profit after tax (PAT) for the fourth quarter. The company has reported Rs 277.96 crore consolidated revenue for the quarter.

    It posted Rs 0.32 crore PAT in the previous quarter and a loss after tax of Rs 43.43 crore in the corresponding quarter of the previous year. The revenue also grew by 6.95 per cent over the previous quarter of Rs 259.90 crores and by 22.38 per cent over the corresponding quarter of the previous year.

    The Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) for the quarter at Rs 67.54 crores was higher by 8.10 per cent over the EBITDA of the previous quarter of Rs 62.47 crores and a 167 per cent growth over the EBITDA of the corresponding quarter of the previous year.

    For overall FY 21, the company recorded an EBITDA of Rs 232.08 crore, growing by 6.16 per cent over the EBITDA of the previous year of Rs 218.62 crores (excluding one-time revenues of Rs 123.12 crores in the previous year. Consolidated revenue for the year remained consistent at Rs 1,008.5 crores, marginally down from Rs 1,038 crores –due to a reduction in the low-margin non-core trading business.

    “The stellar performance can be attributed to the company’s focus on uninterrupted customer service during the lockdown and after, innovative products and solutions to combat the myriad of ground challenges, driving close to a 100 per cent digital mode of collections on a prepaid basis and the unstinting and tireless efforts of all our employees and our Last Mile partners – all of whom rose to the occasion, without exception,” NXTDigital MD & CEO Vynsley Fernandes said.

    The company will continue to focus on its transformation to an “all-digital” services company, driving a host of new products and solutions, whilst expanding into new geographies. One of the key growth drivers for the future will be its recently launched infrastructure sharing PaaS or Platform-as-a-Service offering.