MUMBAI: Tata Sky, one of the leading DTH operators in India has suggested Telecom Regulatory Authority of India (TRAI) that there should be multiple rating agencies. The competition will bring in new technologies and new methods in analysis.
“Yes, multiple rating agencies need to be promoted. Competition will bring in new technologies, new research methodologies, new methods in analysis, new and better ways to ensure better data quality,” Tata Sky has said in its submission to a consultation paper on TV audience measurement floated by TRAI.
On the contrary, GTPL Hathway believes that there is no need for competition in the television rating services to ensure transparency and accuracy.
“If more television ratings agencies are allowed to compete then the sample size will reduce and might even get scattered demographically. Therefore to ensure transparency and accuracy, there is no need for competition in the television rating services,” GTPL Hathway stated.
The DTH player also commented that BARC India is not transparent regarding sharing the methodology and the representation of the panel home amongst the various platform types.
Both Tata Sky and GTPL Hathway suggested that the BARC shareholding body should also include members representing the DPO/DTH/OTT platform body.
To address the issue of panel tampering/infiltration, GTPL Hathway suggested to increase the sample size of the panel household significantly, which will reduce the impact of tampering on overall TV ratings, which in turn will reduce the temptation to tamper with the panel homes.
Tata Sky argues that there is an under representation of DTH customers amongst the existing panel homes and BARC has taken no steps to publish a list for transparency. The representation of HD homes also needs correction.
On the question whether BARC India should be permitted to provide raw level data to broadcasters, the MSO said, “We agree with TRAI’s view that release of raw data to broadcasters may potentially compromise on secrecy of households and sanctity of the data. The proposition that availability of raw data would help in giving the broadcaster sharper insights into viewership behavior is not sufficient to take such a huge security risk. There are other ways of sharper insights into viewership behavior such as AI."
"Provisioning of raw level data to broadcasters will definitely contravene the policy guidelines for television rating agencies prescribed by MIB. The accreditation system mentioned by MIB requires secrecy of panel households, while release of raw data to broadcasters may potentially compromise secrecy of households", GTPL Hathway stated.
MUMBAI: The Telecom Regulatory Authority of India (TRAI) on Tuesday extended the deadline for consumers to select television channels under its new tariff regime till 31 March The subscribers that don’t opt for new channels would be moved to ‘Best Fit Plans’, which would be developed as per usage pattern, language and channel popularity, the sector regulator said in its statement.
The regulator said the decision had been taken to protect the interests of consumers. TRAI stated that some subscribers are facing difficulties in selecting the channels/ bouquet of their choice. In some cases, LCOs have not been able to reach out to the subscriber to create awareness among them and collect the options, it noted.
Right through the last couple of months, the regulator had time and again directed broadcasters and DPOs to ensure a seamless transition with no blackouts of TV screens.
Despite the best efforts of all stakeholders, switch offs were reported across several cities of the country during the transition, a situation RS Sharma and team wanted to avoid.
Therefore the TRAI’s latest move aimed at a consumer-friendly migration seems to be a positive one if ground-level implementation data is looked into.
According to numbers provided by Chrome DM, 24 per cent households had lost complete access to all pay channels in 10.9 million cable and satellite homes in 366 urban cities (340 Chrome DM reported channels).
As per Chrome DM week 6 data, 76 per cent of households in these cities felt no impact of the new norms, as they continued to have access to 300 odd channels as per their old packs. 13 per cent of households among rest 185.1 million cable and satellite homes across the country have exercised their right in some form to pick new packs.
Bhima Riddhi Digital Service promoter Nagesh Chhabria said his team had to convert consumers from pay channel base to FTA base in some areas. Chhabria said the Belgaum-based operator had initially handed ten days to its subscribers to select new channels or packages. However, those that did not exercise their choice were converted to the FTA base. However, he added that consumers were informed prior to the switch off. Overall 30-35 per cent of his company’s consumer base has been converted to FTA.
Maharashtra Cable Operators Foundation (MCOF) member Asif Sayed said the switch-off phenomenon was being witnessed in parts of Mumbai as well. According to him, all the MSOs other than Den Networks “have forcefully converted the pay packages into FTA”.
Sayed went on to add that some consumers, despite having packages with six months validity, have been moved to the FTA base.
“Any form of TV buying on the back of the existing ratings’ sampling does not hold, as the 196 million C&S homes in India will choose different channel packages – running into thousands of combinations. There are multiple combos being rolled out by the broadcasters, DPOs and variants of the same – earlier were an average of 5 packages earlier, which has moved to over 5000 combinations post the NTO implementation,” Chrome DM founder Pankaj Krishna highlighted.
Chrome DM week 5 data revealed that a staggering 90 per cent of consumers were aware of the change in tariff through the TV ads of broadcaster, and not through their cable service providers.
The data also showed that 70 per cent of people who have been contacted were yet to take decisions on which package or channels to subscribe to. Out of the balance 30 per cent in the regional markets, the inclination of choice is more towards regional packages and channels.
According to Chhabria it is premature to talk about the package uptake. He pointed out that broadcasters are marketing national bouquets a lot more than regional one. The veteran executive feels that regional channels are being promoted by DPOs.
According to Chrome DM, a major chunk of the off take of packages will be taken over by the distributor-defined packages, while broadcaster defined-packages will always remain a second choice. Chhabria seconded that theory, adding that around 60 per cent of consumers are picking bouquets designed by DPOs only. Sayed, from his on-ground experience, claimed that only DPO suggested packages are working. He also added that MSOs are taking a lot of time to activate pay channels on a-la-carte basis.
According to several industry watchers Indiantelevision.com spoke to, major MSOs including Arasu Cable, Den Networks, GTPL Hathway, Hathway Cable and Datacom among others had switched off pay channels in various parts of the country. Multiple cities in Delhi and Uttar Pradesh reported a complete pay channel bouquet switch off, expect channels from IndiaCast and Sony. A small section of DPOs had also switched off all pay channels, barring some regional packages. Sayed added that the chaotic situation is increasing the churn rate of the cable business, thereby helping DTH operators.
As per TRAI, there are close to 100 million cable service TV homes and 67 million DTH TV homes in the country. The regulator believes that approximately 65 per cent of the subscribers of the cable services and 35 per cent subscribers of the DTH services have already exercised the options.
MUMBAI: Indusind Media & Communications Ltd (IMCL), the Hinduja Ventures Ltd (HVL) subsidiary, is highly optimistic about the impact of the new tariff order on its business. The MSO asserts that the new regime ensures a more equitable distribution of economic benefits in the value chain. After overcoming major legal battles the new tariff order by Telecom Regulatory Authority of India (TRAI) has finally come to effect from 1 February.
While earlier the deals between broadcasters and distribution platform operators (DPOs) were not transparent and consumers did not have the option to select channels as per their choice, with the new regime the industry is moving towards an MRP based model. IMCL in its third quarter earnings release said that through proper packaging and pricing and giving the consumers the channels of their choice, the company will now be able to move very fast on the path to profitability. The MSO also added that the change will also enable the company to have a better return on capital employed.
HVL reported a total income of Rs.10.16 crore for the third quarter on 7 February while the media and communication segment contributed 10 crore. HVL operates across three segments including media and communication, real estate and investment, and treasury and IMCL comes under the first category.
"IMCL being a progressive player in the MSO industry has looked at the developments in the industry both with respect to the new tariff order and the consolidation very positively and is today in the forefront of providing excellent consumer service through seamless implementation of the new tariff order while ensuring excellent viewership through world class technology. This along with efficient packaging and pricing adopted by it will result in the company move on the path to profitability," IMCL CEO Vynsley Fernandes said.
Last year another major development took place in the distribution industry with the entry of Jio FTTH. To reach last mile consumers easily, JIO announced majority stake in two large MSOs, Hathway Cable and Datacom and Den Networks.
“IMCL believes that such consolidation is good for the industry as it creates an environment for technology driven organisations who will now focus on better consumer experience leading to better pricing rather than pure volume growth in a frittered industry,” the release read.
MUMBAI: Essel group promoted multi-system operator (MSO) Siti Network has planned to migrate Pay TV channels in Kolkata in a phased manner to get non-compliant subscribers to transition to the new TRAI tariff regime. While around 80 per cent of the MSO's 14 lakh subscribers were still to pick their pay channels from an a-la-carte list.
According to a report from The Telegraph, the MSO will start the process before the grace period given by Calcutta High Court in a recent order.
“About 20 per cent of our customers have filled in forms online or offline, specifying the channels they want to watch. We have shifted most of them to the channels of their choice. We will now start shifting the others who have not exercised their choices to the new system by withdrawing their pay channels. They will continue to get the free-to-air channels,” Siti Cable director Suresh Sethia said.
If there is chaos after the migration, the company might start moving some of the subscribers to combinations closest to their current packs. According to the report, another MSO is expected to move subscribers to a combination of channels that can be accommodated within the pricing brackets they are currently in.
“Since most pay channels are now priced higher than they were in the previous system, they will obviously miss out on some, if not several. The only way out is for them to register their choices immediately,” an official was quoted by The Telegraph.
Earlier Telecom Regulatory Authority of India (TRAI) extended the deadline for consumer migration to new plans till January 31. Despite the additional month, several MSOs complained that the majority of subscribers had not responded to the grace period making transition very difficult.
80 cable operators from the city also filed a petition against the order in Calcutta High Court and initially got a stay too. But the high court vacated the stay.
MUMBAI: The Gujarat High Court issued a notice to the Telecom Regulatory Authority of India (TRAI) and the centre on 1 February 2019, over a petition filed by local cable operators (LCOs) challenging the decision to fix the ratio of profit sharing between LCOs and multi-system operators (MSOs).
In 2017, TRAI issued a notification fixing the ratio of sharing of service charges collected towards cable connections at 55:45 between MSOs and LCOs. This was done by inserting clause 12(7) in the Telecommunications (broadcasting & cable) Services Interconnection (Addressable Systems) Regulations.
A bench headed by acting chief justice A S Dave has sought reply from the authorities and posted the matter for further hearing after two weeks.
The Cable Operators Association Of Gujarat filed the petition through advocate Pratik Jasani challenging the insertion of the clause, fixing the revenue sharing between MSOs and LCOs. The cable operators have urged the HC to quash the arrangement before implementation of the 2017 notification, though the government consulted other stakeholders.
MUMBAI: In a major development, the Calcutta High Court, which has jurisdiction over West Bengal and the Union Territory of the Andaman and Nicobar Islands, on Thursday vacated the stay imposed by it on the implementation of the tariff order till February 18.
Local cable operators (LCOs) have now been given time till 8 February to negotiate contracts with multi-system operators (MSOs). Thereon, revenue share within the distribution value chain will be split in line with the TRAI’s tariff order.
On Wednesday, the court had asked the TRAI to submit a report on the matter on 13 February, which is when the next hearing was due to take place. The court’s directive was a result of 80 cable operators filing a petition against the TRAI mandate.
However, realizing the urgency of the situation, the regulator's lawyers, on Wednesday itself, filed an application to vacate the stay.
In its application, TRAI had argued that the court had been misled by the petitioners, and placed the Supreme Court judgment in the court.
The petitioners’ lawyer Debabrata Saha Roy argued that the revenue-sharing model under the new regime will significantly reduce the cable operators’ share to just nine per cent.
With 80% will go into the broadcasters’ kitty, MSOs stand to get just 11 per cent, thus making it an unsustainable business proposition for operators.
Earlier the regulator had offered an extension till 31 January to the distribution platform operators (DPOs) for implementation.
MUMBAI: Just two days ahead of the deadline for consumer migration to new channel packages under Telecom Regulatory Authority of India’s (TRAI) tariff order, Calcutta High Court has stayed the switchover till 18 February.
The court has also asked the TRAI to submit a report on the matter on 13 February, which is when the next hearing will take place. The court’s directive was a result of 80 cable operators filing a petition against the TRAI mandate.
The petitioners’ lawyer Debabrata Saha Roy argued that the revenue-sharing model under the new regime will significantly reduce the cable operators’ share to just nine per cent. With 80% will go into the broadcasters’ kitty, MSOs stand to get just 11 per cent, thus making it an unsustainable business proposition for operators.
Earlier the regulator had offered an extension till 31 January to the distribution platform operators (DPOs) for implementation.
MUMBAI: DTH operator Tata Sky’s ongoing court battle with the TRAI and its new tariff regime, in which Bharti Telemedia-owned Airtel Digital TV and Sun Direct are a part, has been adjourned by the Delhi High Court to January 23 with arguments being inconclusive.
The matter was argued partly by senior lawyer Kapil Sibal on behalf of the direct-to-home operator on Tuesday who focussed on two points of 15 per cent discount cover (or the lack of it) and micromanagement attempt by TRAI of how business should be conducted.
The hearing in the case started at around 2:45 pm and continued till almost 90 minutes during which Sibal argued that with the Madras HC setting aside the 15 per cent discount cap, the main aim of the tariff order had been frustrated and that attempt to micromanage a business, especially moves relating to pricing, etc., some of the provisions of the regulation were not in the interest of the DTH operator, which follows a different cost model compared to MSOs.
The TRAI counsel’s interjection, according to industry sources, was minimal except seeking some technical clarifications relating to issues being argued by the Tata Sky lawyer and the actual content of the writ petition.
Though this essentially means the regulator is unlikely to take any coercive action against the DTH operator and Discovery (that has already published new rates in compliance with the TRAI tariff order) until the next hearing, during the 10 January 2019 hearing of the case the court had verbally observed that Tata Sky could remain non-compliant at its own peril.
At the earlier hearing Sibal had impressed upon the judges to ask TRAI to produce all documents on how it arrived at the decision to implement the new tariff regime. He had also stated that implementing the present order will have an adverse impact on business.
The TRAI lawyer had countered saying while Tata Sky felt aggrieved, a big DTH operator like Dish TV and all other MSOs seemed satisfied and had complied with the new tariff framework.
The court had then asked the regulator to file the documents and the data that was the basis for arriving at the new tariff regime.
Tata Sky is unlikely to upload its RIO for now, unlike Discovery, which has already published the same on its website, under protest.
In 2017, Bharti Telemedia, Tata Sky and Discovery Communication India had filed petitions against TRAI, challenging its tariff order and the interconnect regulations.
Unlike the position adopted by Star India wherein it questioned the regulatory powers of TRAI, the matter in the Delhi HC questions the regulator’s power to wipe out deals that operators enter into to fix commissions and rates for customers.
While the Delhi HC case outcome could have implications on Tata Sky, Sun Direct, other distribution platform operators (DPOs) continue to be bound by the tariff order and most of them have complied too.
MUMBAI: Ministry of Information and Broadcasting (MIB) has extended the deadline to give feedback on the draft sports broadcasting signals (Mandatory Sharing with Prasar Bharti) (Amendment) Bill, 2018 till 15 January 2019. The earlier deadline was 31 December 2018.
In an earlier notification dated 17 October, it said that feedback must be given within a month to enable telecast of “Sporting events of national importance’ on mandatory channels of Doordarshan via cable/DTH/ IPTV operators.
As per provisions of the Sports Act, the live feed received by Prasar Bharati from the content rights owners or holders is only for the purpose of re-transmission of the said signals on Doordarshan’s own terrestrial and DTH network (DD FreeDish) and not for cable operators or other distribution networks. The ad sales is also done by private companies after taking the pubcaster into confidence with the additional ad revenue shared between the rights holding TV channel and DD.
Viewers, who do not have DD FreeDish [pubcaster Doordarshan’s FTA DTH platform] or Doordarshan’s terrestrial network, are either unable to watch these sporting events of national importance or are compelled to watch these sporting events on highly priced sports channels.
Additonally, private DTH platforms and MSOs/LCOs were barred from showing DD's non-terrestrial channels that re-transmitted the shared feeds, after the August 2017 Supreme Court ruling, for the duration of that particular event and it was stressed upon also by Prasar Bharati fearing adverse reaction from the apex court.
The extension notice reads: “Reference this Ministry’s earlier notice dated 17.10.2018 seeking feedback / comments on Draft Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) (Amendment) Bill, 2018 and the notice dated 09.11.2018 to extend the deadline upto 31.12.2018 for receiving feedback/comments from General Public/Stakeholders on the said draft Bill, 2018. It is informed that the deadline for receiving feedback/comments from General Public/Stakeholders on the said draft Bill, 2018 to enable telecast of ‘Sporting events of National importance’ on mandatory channels of Doordashan via Cable / DTH / IPTV Operators has been further extended by this Ministry till 15.01.2019.”
MUMBAI: Cable operators across the country, and particularly in Maharashtra, seem to have upped the ante in their confrontation with the Telecom Regulatory Authority of India (TRAI) over the new tariff order that will be applicable to the broadcast sector from 29 December 2018. At a protest gathering in the city on Wednesday, the Cable Operator and Distributors’ Association (CODA) called for a cable TV blackout from 7 to 10 pm today.
The cable operator fraternity has taken affront to the TRAI formula that dictates the revenue sharing model. As per the regulator’s math, MSOs and LCOs will split the network capacity fee (NCF) of Rs 130 in a minimum 55:45 ratio, with no share for the broadcasters. Consumers will have access to 100 FTA channels, including 26 mandatory Doordarshan channels, by paying the NCF. For pay channels, broadcasters will pocket 65 to 80 per cent of the MRP with the MSO and LCOs sharing the rest in a 55:45 ratio.
“The protest is about two things, one is the price hike which is going to affect the customer and second the revenue share. The cable operators must get 40 per cent and the remaining 60 per cent should be divided between the broadcaster and the MSO,” said CODA’s Anil Parab.
Apart from the sector regulator, the Maharashtra cable operators seem to have trained their guns at the Star India Network too. There’s a protest planned at Lower Parel’s Urmi Estate, which houses the Star India office, at 2 pm on 28 December. Not just that, LCOs say they will also refrain from pushing Star’s channel pack to consumers.
“We are boycotting Star India channels. We are going to sit outside Star office in Lower Parel on 28 December at 2 pm. We will not book Star India channels initially,” added Parab.
The reason for their ire at Star is the broadcaster’s alleged refusal to meet and negotiate with cable operators.
“All the broadcasters except Star are in communication with us and are willing to sit across the table to iron out differences,” Maharashtra Cable Operators’ Federation committee member Asif Syed told Indiantelevision.com.
He also said that dissuading consumers from opting for the Star pack won’t be all that difficult given the personal equations LCOs share with most of them.
“It takes about a week to change the viewing preference of consumers. We have first-hand experience of this,” he added.
While the distribution ecosystem is now up in arms, it was Star India that fought the TRAI tooth and nail in the Madras High Court and then the Supreme Court over the tariff order.
In private conversation, however, some operators agree that they should have voiced their concerns on the matter ahead of time. The last-minute agitations may not yield the desired results, but the faction-riddled cable fraternity is determined to put up a united front.
“We demand that the revenue sharing should be around 60 and 40 per cent. 60 per cent of the pay channel revenue should be shared between the MSOs and the broadcasters, and the remaining 40 should purely go to the LCOs. On the FTA channels, minimum fee of Rs 20 should be taken by the MSO for carrying channels up to the LMOs headend, as after that he distributes on his own network. 80 per cent of the networks where FTA channels are carried are in the hands of the LCOs. 20 per cent of the FTA channels revenue should be given to the MSOs,” argues MNS Cable Sena VP Jagdish Joshi.
While the LCOs are spoiling for a fight, MSOs don’t seem to be wanting a piece of the action.
“The protest is about the amendments in the sharing revenue model on pay channels and want it to be changed to 60:40 from 80:20 currently. There is no support from us,” a member of the senior management of a national MSO told Indiantelevision.com on the condition of anonymity.
This protest isn’t just a Mumbai phenomenon. LCOs from over 30 associations across the country descended on New Delhi’s Jantar Mantar on Wednesday asking TRAI to amend the tariff order.
The Vadodara Cable Operator Association, joined by their counterparts from Ahmedabad, called for a complete blackout on 28 December night to let their displeasure known to the regulator during a gathering at the Gandhinagar Gruh.
In Hyderabad on Tuesday, the Old City Cable TV Operators Welfare Association threatened to blackout paid channels and stop payments to MSOs if they were compelled to pay based on the new tariff regime.
“We are not against the tariff order; we just want some amendments to be done before the implementation. As per the trends going in the country, if the revenue share is very unfair, nobody is ready to do business in the country,” Joshi concluded.
Stepping up its efforts to enable a smooth transition, TRAI said it is preparing a detailed Migration Plan for all the existing subscribers. On Wednesday, the regulator issued a circular allaying fears of a potential blackout.
“The authority has noticed that there are messages circulating in the media that there may be a black-out of existing subscribed channels on TV screens after December 29, 2018. The authority is seized of the matter and hereby advises that all broadcasters/DPOs/LCOs will ensure that any channel that a consumer is watching today is not discontinued on 29.12.2018. Hence, there will be no disruption of TV services due to implementation of the new regulatory framework,” the circular said.
Earlier this month, filed a petition seeking clarification on the issue of 15 per cent cap on discount on a bouquet price of TV channels to consumers that had been set aside by Madras High Court while upholding TRAI’s right to regulate the broadcast sector. The matter will be listed when the top court resumes post the winter break in January 2019. There’s another case being heard in the Delhi High Court involving Tata Sky, Airtel Digital TV and Discovery India that will be heard on 10 January.
The LCOs are closely monitoring these matters. They also don’t rule out raking up the ongoing issue with the TDSAT. For now, however, they intend to show their might to TRAI and the broadcasters as the country prepares to adopt a new tariff regime. It remains to be seen what impact they can conjure up.
