ITV

Tag: multi system operator

  • FY-16: Hathway revenue up 13.7 percent, EBIDTA up 51.7 percent

    FY-16: Hathway revenue up 13.7 percent, EBIDTA up 51.7 percent

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 13.7 per cent growth in Total Income from operations (TIO) and 51.7 percent growth in operating profits (EBIDTA) for the fiscal ended 31 March 2016 (FY-16, current year). The company reported TIO of Rs 2,081.63 crore in FY-16 as compared to Rs 1,831.60 crore in the previous year. The company’s EBDITA in the current year was Rs 388.69 crore (18.7 percent EBIDTA margin) and was Rs 256.16 crore (14 percent EBIDTA margin) in the previous year. The company narrowed its loss in the current year to Rs 163.13 crore in FY-16 from a loss of Rs 180.45 crore in FY-16.

    High growth in Activation fees and Broadband revenue are chiefly responsible for the improved performance.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR).The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    The company’s broadband segment has been performing very well, as a matter of fact, among the national level MSOs’ Hathway has the highest subscription and revenue numbers among all of them. Hathway says that it has invested Rs 206 crore into its Broadband business in FY-16.

    Hathway’s consolidated broadband subscribers increased 38 percent in FY16 to 6.272 lakh from 4.558 lakh in FY-15. Consolidated broadband revenue in the current year increased 61 percent to Rs 399.3 crore from Rs 247.5 crore in the previous year. Broadband ARPU in the current year increased to Rs 670 from Rs 530 in the previous year.

    Consolidated reported CATV subscription revenue in the current year declined 3.3 percent to Rs 812.7 crore from Rs 840.3 crore in FY-15.

    The company says that it deployed 22 lakh set top boxes in FY-16, 10 lakh of them in the last quarter of FY-16, and it has 1.06 crore CATV digital subscriber’s (87 percent of its subscriber base of 1.23 crore). Its DAS phase I area standalone Average Revenue Per User (ARPU) in the quarter ended 31 March 2016 (Q4-16, current quarter) increased to Rs 105 from Rs 100 in Q4-15. Its standalone DAS phase II area ARPU in Q4-16 increased to Rs 86 from Rs 67 in the corresponding year ago quarter.

    Placement revenue in the current year declined 4 percent to Rs 598.8 crore from Rs 626.9 crore in the previous year.

    Activation revenue almost tripled (2.8 times) in FY-16 to Rs 227.9 crore from Rs 82.4 crore in FY-15.

    Other revenue increased 24 percent in FY-15 to Rs 42.9 crore from Rs 34.6 in the previous year.

    Hathway’s Total Expenditure in FY-16 increased 8.9 percent to Rs 2,072.56 crore (99.6 percent of TIO) from Rs 1,903.38 crore (103.9 percent of TIO) in the previous year.

    Pay channel cost in the current year increased 1 percent to Rs 821.65 crore (39.5 percent of TIO) from Rs 813.13 crore (44.4 percent of TIO) in FY-15.

  • ‘We have never got the cable television pay model right’: Ronnie Screwvala

    ‘We have never got the cable television pay model right’: Ronnie Screwvala

    Despite having a negative connotation more often than not, “disruption” can be a good thing, especially when it’s planned and executed in a strategic manner. And if there’s one person who is known for good disruption time and again in the Indian media and entertainment industry, it’s Rohinton Soli Screwvala or Ronnie, as he is popularly known as.

    With a quest to grow and excel in whatever he undertakes, Screwvala belongs to the rare breed of first generation media entrepreneurs in India. For him, trying is not enough for he believes in achieving all his dreams as he dreams with his eyes open!

    The pioneer of cable television in India, Screwvala has been best known to build brands and enter untapped territories. From a humble beginning in the cable industry, erecting one of India’s well known media company UTV, grabbing The Walt Disney Company’s attention, foraying into Kabbadi – a sport that was never televised robustly to breaking even in the second year, Screwvala has always pushed the boundaries.

    Complacency and failure are two words that don’t exist in his dictionary. In a country where entrepreneurship means legacy business, Screwvala is the flag bearer for first generation entrepreneurs.

    In a conversation with Indiantelevision.com’s Anirban Roy Choudhury, Screwvala goes back in time and shares his views on the Indian cable TV industry, Disney, sports and more.

    Read on for more :-

    The Disney – UTV deal is touted as a landmark deal in the Indian broadcast space. How does it feel when you look back at it today?

    I feel very proud when I look back at Disney India. We have a phenomenal team, which is doing an incredible job across the board. The channel is doing well and the movie studio is doing fantastic. The live show Beauty and the Beast has given live experiences in India a new benchmark. The best part is that they did it with local talent. It was not some imported show that travelled in here and went away.

    So it’s an incredible job done by the Disney team in India and I am proud of them. The easiest thing would have been to get a travelling show in, but they took the difficult route with local talent so it’s a local Disney show. The Disney team makes me feel proud.

     

    As a pioneer of cable television in India, you played a pivotal role in building it from scratch. What is your view on the evolution?

    When I look at cable, I have to say I have a little bit of regret because we are the only country in the world where we have to explain what cable TV is!

    The concept of local cable operator (LCO), multi system operator (MSO) is not there anywhere in the world other than India. A cable operator means that you need to pay for content. There are cable operators who are actually aggregators of channel. We have never got the pay model right! It started because nobody wanted to pay. Then there was a whole decade of under-declaration and nobody made capital investment.

    There are two things: Firstly, after 25 years of cable we are still not paying for content and secondly, serious investments have not gone into cable. You need billions of dollars……. we are still using the same cable that we were using 25 years back. We are still using the same model that we were using 20 years back. Yes, there have been some improvements, but we cannot call it cable TV. We are not cable TV like the world understands cable TV and that’s my problem.

    On the flip side, I must say it’s an incredible cottage industry. Look at the number of jobs it has created! It’s such a gigantic industry and for that matter if it was not the way it flourished, TV might not have been that popular the way it is. People could still be watching terrestrial TV and there would have been no satellite programming. So the fact that it has spread because of its entrepreneur spirit is a proud moment.

    I am proud of the entrepreneur spirit that has gone in there. However, I am regretful because no serious investment has been made there and we could not manage to get the pay model right.

    Speaking about the pay model, are we getting it right in digital? We are providing content for free and hence making free content consumption a behaviour.

    Let’s be very clear… people think online is free, but we are not doing anything for free. The first entrepreneurship course that we are launching is for Rs 50,000 for three months. Yes, people are skeptical to pay but that’s the way forward.

    The problem with the digital platform is that the biggest player in the ecosystem – YouTube is for free. That becomes habit forming. Things will change on digital once we go to experiential viewing. There has to be something for you other than just watching… I don’t have any idea what that is but we are trying very very hard to figure it out.

    I think the digital paid space will be experiential where you are not paying for watching but for watching plus plus… We are trying to figure out what those plusses are.

    Do we have a content strategy ready for digital? People still consider it to be a platform for 2 to 3 minutes video consumption.

    You will be shocked to hear that since last year, people are watching 30 to 40 minutes of content online even while everyone thought that digital means two to three minutes. 

    There are more people now watching 20 to 30 minutes of content online compared to the ones watching two – three minutes. What’s more, people have been also heard saying that the smaller duration content is snaky. That habit is changing because there are increased offerings. You give people quality content, they will consume it.

    Quality of content and storytelling in digital is changing. People are ready to watch a full movie on digital but they cannot now because of the bandwidth issue. So content size is not an issue, it’s the quality that matters.

    Talking about films on digital, Netflix recently simulcast The Beasts of No Nations. What’s your take on Netflix and what is the revenue model that Indian players should follow?

    Today Netflix’s market cap is as much as 21st Century Fox’s, it is as big as Time Warner and higher than Viacom… with the sole exception of Disney, which is the largest media company in the world.

    The road ahead for digital has to be ad revenue. We cannot fool ourselves on that. But the frustrating part is that we are dealing with people who do not understand digital. So the problem is that when you start a new digital medium, the main constituent – the advertisers – do not understand it at all. They still think it’s niche. They just don’t get it that today movies can be launched on digital.

    There are huge advantages of the platform. Sorry to generalise on the advertisers but the fact is that they do not understand digital and it’s going to take them three to four years to understand it. The big challenge is that while digital players will rely on advertisers, there will be no one available to experiment. So players will have to experiment, prove and only then will advertisers come on board.

    Are you saying that the next few years will be very tough for digital players?

    It will be tough, but it will be tough in a good way. It won’t be scary tough. Only serious players in the ecosystem will stay. The others that are coming with a herd mentality, the MCN players etc… I have no idea what they are up to.

    You cannot wake up to 20 different channels. What is the need? What is the model? Where will it go? What will happen to it? And the worst part is, you got investors backing those models. I fail to understand what they are up to. But yes, serious players who want to be in the ecosystem for good will be there.

    After your successful stint with Kabaddi, are you eyeing any other sport?

    We are investing in football. We are doing global grass root training programmes but it’s not the training that everyone is doing here. The training that we are giving is very different wherein we will take 60 kids to Germany for six years of training.

    Since the cost of something like this is very high, the expenses will be shared by us and the candidates. The will pay for the lodging and boarding, whereas we will pay for the training. We will manage their careers for the next 10 years. The age group that we are looking at is under 12, under 14, and under 16. We have to catch them really young and that’s the challenge.

    There are people who do three months training and summer courses, but you cannot become football stars by that. In our initiative, the kids will have to be away from home for six years. The peer pressure to meet global standards, the environment, discipline and the commitment is what we plan to offer them.

    So is this a business proposition of USports or are you doing this to uplift the sport?

    (Laughs). Of course it is a business proposition! Swades is the only social initiative that I am in for non-profit. Everything else is pure business. I think we are in the process of developing 300 future football stars. Then we will manage their careers for 10 years, that’s our business model.

    What is the progress of your motor-sport innovation?

    My motor-sport venture is an attempt to start a destination sport in India involving two-wheelers. Lakshadweep, Daman and Diu, Leh and Ladakh and Puducherry are the locations that we have in mind. The infrastructure has to step up to it, and the most important part is not the track but safety.

    This year India will be number one in terms of bike consumption, larger than China. The two-wheeler population is massive in India. Therefore, sports is an interesting way to go forward with that. But to us, the most important part is safety. It’s not a rally that we are planning so we cannot do it on a muddy paddy field. The infrastructure will take time to grow. There will be one domestic team and one international. The domestic riders will go abroad and train for six months.

    How much more time do you think it will take to match the quality you need? Are there any other investors involved?

    I would have liked to start it in next six months but the safety level that we are targeting will take at least 18 months more.

    I am doing it on my own and there is no partner involved to start the league. Here, we are going to be a league owner and our partners will be the ones we sell our franchises to.

    You have entered into online education with UpGrad. What are your plans with the venture?

    UpGrad is in the education space for post-grads. We are eyeing 14 to 16 completely different online courses, which will all be post-grad and specialised courses.

    We kicked off on 25 November with our entrepreneurship course. UpGrad received 2000 applications and then eventually we shortlisted 600 participants for the first cohort that started on 25 November. This would be the first time someone is doing a course of such high scale on entrepreneurship. The number that we roped in is huge. For every hundred students, there will be a teacher associate, who will interact with them at regular intervals. There will be a continuous process of mentorship. The course on entrepreneurship is of three months. After that the next one on Big Data will be of nine months to a year. We are launching three new courses, which will be out between March and May.

     

    You recently wrote a book and that inspired many igniting minds. Are you planning a second one too?

    I am not an author for sure! A book takes a lot of effort, I am happy being a business man. I am not even thinking about one more book at this stage.

     

     

     

     

    What are your plans with Swades? How much do you invest in it both in terms of money and time?

    Swades to me is not an investment. We are putting our heart and soul in it. Zarina, my wife, is working full time for that. We are not cutting cheques. Philanthropy is when you cut a few cheques and give it to an NGO. We are building a foundation from ground up. Yes, we are putting our own money but we are also putting our sweat and toil. We have 1200 people working for Swades, which is also quite big. It is a life-long commitment for us and there is no running away from it.

     

     

    You are too much of a TV person to not be in TV. When are you going back? What’s next?

    I don’t feel I am being left alone. Look at the things we are doing with Football, UpGrad and with Kabaddi. If because of Filmfare, five people used to come for selfies, now at least 50 of them come because of Kabaddi. It’s the same in rural areas too. When we travel for Swades related work, we get to know the popularity and the craze of the sport.

    I am happy with what we are doing and have no plans of going back. Swades is a key focus for me and Zarina both and we will continue to do what we are doing.

  • Big Picture round up: Best time for M&E even as clear policies needed for TV & films

    Big Picture round up: Best time for M&E even as clear policies needed for TV & films

    NEW DELHI: This is perhaps the best time for the media and entertainment (M&E) industry as the sector is being seen for the first time as an exporter and major source of foreign investment.

     

    This was the general impression at various sessions of the Big Picture summit organised by the Confederation of Indian Industry (CII), where speakers also said that the promulgation of goods and services tax would be a great help.

     

    However, problems were raised about shortage of screens for the film sector and state governments and the centre were asked to offer whatever help they could to overcome this.

     

    Even as they were assured by Finance Ministry officials that the GST would be an anathema to their woes, the sector – particularly the film sector – appeared skeptic as it had to content with other problems such as piracy, shortage of screens and a lack of good content writers.

     

    In the session on Taxing Times for M&E at which Revenue Special Secretary Rashmi Verma and Member Service Tax and GST V S Krishnan sought to allay fears, Film Federation of India vice president Ravi Kottarakara said the film industry had at one time been the most powerful entertainment medium but had now lost its power despite making more than a thousand films in different languages every year. He said this was because the success rate was just five per cent and the competition from other screens had increased apart from the malaise of piracy and multiple taxation.

     

    The session was moderated by Network 18 advisor to the chairman A P Parigi. 

     

    Kottarakara said people tended to forget that 95 per cent of the films failed at the box office and lost money and only remembered films, which had created records. The share of the film industry in M&E has fallen from 60 per cent to 13 per cent, he said.

     

    He also regretted that the film industry was at a crossroads since development in other sectors was at the cost of the film industry and so it was going through one of its worst phases despite going global. In the mind of the government, cinema was akin to sins like lotteries or liquor. Even in Delhi, cinema houses came under the Shops and Establishments Act and not as an art.

     

    Even banks were wary of financing films and the filmmakers had to struggle for finance.

     

    Kottarakara described GST as a double-edged sword and said that assurance was needed that the states would not interfere once the new tax regime came in.

     

    Hinduja Ventures whole time director Ashok Mansukhani said that the media industry exists only on passion. He wondered why service tax was levied on this industry when it was entertaining people and said this appeared unrealistic.

     

    He said that the first multi system operator (MSO) had come in 1965 and taxes came in much later when the government found a new source of earning money.

     

    It was also unrealistic of the government to have digitised 30 million cable television homes in the last two years and was expecting to digitise 70 million homes in less than 15 months. “No other country has ever been able to do this,” Mansukhani said.

     

    Mansukhani wanted GST to be transparent and urged the government to clear transitional problems. “At present there are 24 types of VAT in the country,” he informed.

     

    Ernst and Young partner and markets leader Farokh Balsara called for a speedier decision on greater foreign direct investment (FDI).

     

    Zee Network’s legal expert Avnindra Mohan wanted to know if television was considered a media or a goods industry, considering the way it was treated. “The television industry needs equity and fairness, clarity, and a help in development. But all these are missing,” he lamented.

     

    As an example, Mohan said 50 per cent went into taxes in the direct to home (DTH) industry, 40 per cent into licence fee and only 10 per cent came to the operator.

     

    In comparison, the session on Increasing Exports was more positive as most speakers felt that this was the best time for the industry as the government was looking towards it as an exporter and foreign export earner.

     

    Viacom 18 executive vice president Ferzad Palia said Indian television serials had ample scope to travel overseas but were not available in as many as 140 countries.

     

    Motion Pictures Distribution MD Uday Singh was of the opinion that something had to be done about the low screen density in the country. However, he noted the growth in mobiles and said OTT will spur this growth.

     

    Wizcraft founder Sabbas Joseph said despite his experience of the International Indian Film Academy (IIFA) Awards, he had realised there were some success stories of Indian artistes overseas but no picture of a unified M&E industry. “There is a need for deep introspection and the dependence on the government is a mistake,” he voiced.

     

    In a third session on regional cinema conducted by Delhi film critic Shubhra Gupta, the filmmakers were unanimous that regional cinema contained the heart and soul of the country’s culture but that Doordarshan and other channels failed to encourage this.

     

    Ashoke Vishwanathan of Kolkata said cinema had gone global but had not reached other parts of the country. He wanted an educated National Film Policy. He was seconded by Kannada filmmaker P Seshadhri who said filmmakers had to act as entrepreneurs since there were few distributors for takers of serious regional cinema.

     

    Assam State Film Finance and Development Corporation chairperson Bobbeeta Sharma said the state government was now helping the industry in the state. She wondered why Doordarshan was not lending a helping hand.

     

    Drishyam Films CEO Shiladitya Bora related how the attempt was to depend less on the large screen and so made films that appealed to all kinds of audiences. 

  • FY-2015: Hathway revenue up 15.7%; cable subscription revenue up 44%

    FY-2015: Hathway revenue up 15.7%; cable subscription revenue up 44%

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited reported 15.7 per cent growth in consolidated Total Income from Operations (TIO) in FY-2015 (year ended 31 March, 2015, current year) to Rs 1830.60 from Rs 1583.25 crore in FY-2014.

     

    The company has reported 44 per cent growth in consolidated cable subscription revenue in FY-2015 at Rs 840.3 crore. Standalone TIO grew four per cent to Rs 1023.5 crore in the current year. Standalone cable subscription revenue increased 32 per cent to Rs 441.7 crore in FY-2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Hathway’s consolidated subscription and broadband revenue grew 47 per cent to Rs 247.5 crore, while standalone subscription and broadband revenue increased 37 per cent to Rs 196 crore in FY-2015. Consolidated placement revenue grew nine per cent to Rs 626.9 crore, while standalone placement revenue remained flat at Rs 319 crore in FY-2015. The company’s consolidated and standalone revenues declined by 50 per cent to Rs 82.4 crore and by 40 per cent to Rs 44 crore respectively in FY-2015.

     

    The company has seeded 4.3 lakh set-top-boxes (STBs) in FY-2015, taking its total digital subscribers to 85 lakh.

     

    Let us look at the other numbers posted by Hathway:

     

    FY-2015 consolidated and standalone numbers

     

    Hathway’s consolidated Total Expenditure (TE) in FY-2015 increased 21 per cent to Rs 1903.38 crore (103.9 per cent of TIO) from Rs 1572.75 crore in FY-2015. Standalone TE increased 11.2 per cent to Rs 1110.43 crore (108.6 per cent of TIO) in FY-2015 as compared to the Rs 998.84 crore (101.9 per cent of TIO) in FY-2015.

     

    Hathway’s consolidated Pay Channel cost increased 22 per cent to Rs 813.13 crore (44.4 per cent of TIO) in FY-2015 from Rs 666.41 crore (54.1 per cent of TIO) in FY-2016. Standalone Pay Channel cost in FY-2015 increased 17.8 per cent to Rs 383.99 crore (37.5 per cent of TIO) as compared to the Rs 325.88 crore (33.2 per cent of TIO) in FY-2014.

     

    The company reported 16 per cent drop in consolidated EBIDTA to Rs 259.9 crore and a 27 per cent drop in EBIDTA to Rs 139.4 crore in FY-2015 as compared to the previous year.

     

    Consolidated loss in FY-2015 increased to Rs 180.45 crore as compared to the Rs 111.11 crore in FY-2014, while standalone loss in FY-2015 increased to Rs 175.22 crore from Rs 125.25 crore in FY-2014.

     

    Consolidated average revenue per user (ARPU) in Phase I cities is Rs 100, while in Phase II cities it was Rs 67. Broadband ARPU increased to Rs 540, with Docsis 3 ARPU reaching Rs 750.

     

    Q4-2015 standalone numbers

     

    Hathway’s standalone TIO in Q4-2015 declined 18.3 per cent to Rs 270.03 crore as compared to the Rs 292.72 crore in the corresponding year ago quarter but increased 12.9 per cent as compared to the Rs 239.15 crore in the immediate trailing quarter.

     

    Standalone TE in Q4-2015 at Rs 307.66 crore (113.9 per cent of TIO) was 1.9 per cent lower than the Rs 313.53 crore (107.1 per cent of TIO) in Q4-2014 but 12.1 per cent more than the Rs 274.39 crore (114.7 per cent of TIO) in Q3-2015.

     

    Standalone Pay Channel cost in Q4-201t at Rs 107.34 crore (39.8 per cent of TIO) was seven per cent lower than the Rs 115.41 crore (39.4 per cent of TIO) in Q4-2014 but 14.1 per cent more than the Rs 94.04 crore (39.3 per cent of TIO) in Q3-2015.

     

    Hathway reported higher standalone loss of Rs 58.05 crore in Q4-2015 as compared to the loss of Rs 49.27 crore in Q4-2014 and loss of Rs 39.26 crore in Q3-2015.

  • DEN Networks hikes foreign investment limit to 74 per cent

    DEN Networks hikes foreign investment limit to 74 per cent

    MUMBAI: Close on the heels of multi system operator (MSO)  Hathway Cable and Datacom’s decision to increase the foreign investment limit in its company, DEN Networks has now followed suit.

     

    It may be recalled that in January this year Hathway decided to increase the foreign investment limit from 49 per cent to 74 per cent. 

     

    DEN Networks, which is currently building its broadband base and also working towards digitisation in phase III and IV, is looking at attracting overseas capital into the company.

     

    DEN Networks has got the approval from the board of directors to increase the foreign investment limit in the company by Foreign Institutional Investors (FII) and Foreign Portfolio Investors etc. from the current 49 per cent to 74 per cent. This, subject to approval of the shareholders, Foreign Investment Promotion Board of India, Ministry of Finance (FIPB) among others.

     

    In an announcement to the BSE, DEN Networks said, “The board of directors of the company has approved through circulation, increase in foreign investment limit in the company by Foreign Institutional Investors, Foreign Portfolio Investors etc., under the Portfolio Investment Scheme in accordance with Schedules 2 and 2A of Foreign Exchange Management Act (Transfer or Issue of Security by a person Resident Outside India) Regulations, 2000 (FEMA 20) from existing 49 per cent to 74 per cent of the issued and fully paid-up share capital of the company, subject to the approval of the Shareholders, Foreign Investment Promotion Board of India, Ministry of Finance (FIPB) and all other applicable acts, laws, rules, regulations, circulars, directions, notifications, press notes guidelines and statutory approvals, if any.”

    The approval of shareholders for aforesaid resolution will be taken through Postal Ballot in accordance with section 110 of the Companies Act, 2013 read with Rule 22 of the Companies (Management and Administration) Rules, 2014, the release further added.

  • Kolkata LMOs to set up another cooperative post 2014 FIFA WC

    Kolkata LMOs to set up another cooperative post 2014 FIFA WC

    KOLKATA: The last mile owners (LMOs) in Kolkata are yet again gearing for owning their subscribers. While earlier a group comprising 100 LMOs had announced their plan of setting up their own cooperative, news now is that another set of ‘unhappy LMOs’ in Kolkata has united to set up their own control room and headend.  

       

    According to cable TV sources operating in the region, LMOs will declare their plans only after the end of the ongoing 2014 FIFA World Cup. The delay is to ensure that the 33 lakh cable TV subscribers in the area do not see any disruption in their cable TV services, especially during the football World Cup.

     

    The trend of more and more LMOs joining hands to set up their own cooperative has come from the rising concern over MSOs becoming the owners of the subscribers, which according to the LMOs have been owned by them for years. Sources hint that the industry will soon see some major announcements.

     

    Indiantelevision.com was the first to report on how around 100 LMOs in the region had united a few months ago to form a cooperative called ‘Bengal Broadband’.  The aim of this was to provide independent cable TV services to customers like any other multi-system operator (MSO), namely SitiCable, Manthan and Incable among others.

     

    ‘Bengal Broadband’ aims to start operation in the current fiscal 2014-15 and has already invested around Rs 4.8 crore in setting up the headend equipment and office infrastructure at Salt Lake College More in the city. The cooperative is looking at a subscriber base of one million in the first year of its operations. Not only this, it also aims at providing cable TV connections at a cost which is 15-20 per cent lower than the other MSOs.

     

    While Cable & Broadband Operators Welfare Association convener Swapan Chowdhury refused to comment on any such development, Cable Operators Sangram Committee general secretary Apurba Bhattacharya confirmed the news of LMOs in Kolkata venturing into forming a cooperative. “The operators are happy to get into this space. We will run the business ourselves.”

     

    A LMO, who is a part of the new venture said, “We are setting up our own control room and it will involve a cost of around Rs 1 crore. We will be able to offer services to customers at a cheaper rate. It will be an operators’ driven MSO.”

     

    “During the analogue regime, the revenue share between the MSO and LMO used to be 20:80 but after DAS, it has come down to 65:35. The business model is not at all lucrative. If this continues, we will die and not be able to arrange our daily bread and butter,” added another LMO who is a member of the group that is setting up the control room.

     

    Small operators will become a part of a larger LMO network, said another, without divulging much details.

  • Den Network’s profit run continues in FY-2014; topline rises

    Den Network’s profit run continues in FY-2014; topline rises

    BENGALURU: At a time when most companies involved in carrying television signals from the broadcaster to the consumer via cable have reported losses and are complaining about poor collections, Den Networks Ltd  (Den Networks) has reported profits, albeit slightly lower by 3.6 per cent as compared to last fiscal’s.

     

    The company’s assets and liabilities show that its trade receivables in FY-2014 has gone up by 20.4 per cent to Rs 391.92 crore (35.1 per cent of Operating Revenue of Op Rev) as compared to the Rs 325.62 crore (35.6 per cent of Op Rev) in FY-2013 as is obvious, in terms of percentage of Operating revenue vis-a-vis the previous year, the percentage of trade receivables has dropped fractionally.

     

    Den Networks reported a PAT of Rs 75.14 crore (6.7 per cent of Op Rev) for FY-2014, as compared to the PAT of Rs 77.94 crore (8.5 per cent of Op Rev) in FY-2014. In Q4-2014, the company reported a PAT of Rs 15.21 crore (5.04 per cent of Op Rev), lower by 5.4 per cent than the Rs 16.08 crore (5.9 per cent of Op Rev) during the immediate trailing quarter and 41.7 per cent lower than the Rs 26.08 crore (9.61 per cent of Op Rev) in Q4-2014.

     

    On the topline front, Den Networks has crossed the Rs 1000 crore operating revenue mark in FY-2014. The company reported Op Rev of Rs 1116.69 crore which was 22.2 per cent more than the Rs 914.05 crore last fiscal. Op Rev for Q4-2014 at Rs 301.86 crore was 10 per cent more than the Rs 274.46 crore in Q3-2014 and 11.2 per cent more than the Rs 271.43 crore in the year ago quarter Q3-2013.

     

    Here’s what the company has to say in its investor update:

     

    The company’s income from operations in Q4-2014 at Rs 930.43 crore can be broken in to streams –Rs 281.69 crore from its cable business and Rs 648.65 crore from its distribution business. After cost of distribution rights of Rs 633.57 crore, net revenue from the segment along with other income is Rs 17.44 crore, while the net revenue from the cable including other income is Rs 308.23 crore. The cable business has shown a positive result before tax of Rs 11.78 crore, while its distribution business a negative result or loss of Rs 4.6 crore.

     

    Consolidated Full Year EBITDA for FY-2014 was Rs 367.71 crore, a 52 per cent jump from Rs 242.70 crore in FY-2013. The Company says that it has incurred expenses of Rs 15 crore (approx) towards broadband and DAS Phase III and IV cities in this year, which have been considered in the EBITDA.

     

    Full Year EBITDA for FY-2014 Rs 357.51 crore, a 54 per cent jump from Rs 231.72 crore in FY-2013 EBITDA margins stood at 32.1 per cent.

     

    Subscribers and Set Top Box Deployment

     

    In Q4-2014, Den Networks claims to have deployed 450,000 set top boxes.  It says that it now has digitised approximately 6.1 million homes of its total subscriber base of 13 million homes. The company says that it has an estimated analog base of 7 million homes in its Phase III and IV markets. It confirms that it is well capitalised to meet the deployment requirements of its existing analog subscriber base in these cities. 

     

    Click here to read the full report

    Click here for investor update

  • Viren Raheja’s reengineering drive at Hathway

    Viren Raheja’s reengineering drive at Hathway

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

  • Business digitisation is yet to start in phases I and II: Cisco

    Business digitisation is yet to start in phases I and II: Cisco

    KOLKATA: The phases I and II of cable TV digitisation may have been complete technically but a lot needs to be done as far as the back end is concerned, that is the business digitization is yet to start, thinks Cisco India & SAARC regional manager and service provider Sandeep Arora.

     

    Arora thinks that with digitisation in municipal and rural areas also being in demand in phases III and IV across the country, the headend market is redefining itself in India. Fulfilling that would be Cisco, which is planning several innovations to enhance the consumer experience.

     

    “Business and technical digitisation go hand in hand. Revenues for MSOs (multi-system operator) have started flowing in. Profitability and consumer experience are expected to go up in coming days,” remarked Arora while talking to indiantelevision.com.

     

    According to Arora, phases I and II of digitisation of cable TV were implemented in the right frame of mind. “The players adhered to the MIB rules and the phases were well coordinated,” he said.

     

    The US based tech giant set up the hosted headend facility which could be leased by MSOs and local cable operators (LCOs). This will help the company garner revenues from the small LCOs and MSOs that cannot earmark huge investments for installing headends. “We initiated this in phases I and II and its deployment will substantially reduce the capital expenditure of the MSOs and the LCOs,” said Arora.

     

    Interestingly, Cisco garnered a market share of 53-55 per cent in the first two phases where more than 25 million cable TV homes were digitised. “In the next two phases, there is a requirement of 75 million homes to be digitised and if not more we will aim to maintain the same market share of around 55 per cent,” he added.

     

    Some of the clients of Cisco include Hathway, Den, KCBPL-GTPL among others.

     

    Cisco is eager to offer cable TV operators broadband services by upgrading their existing networks. “Broadband is a key priority for us now and it will drive growth,” he said.

     

    The company is offering a technology that will enable cable TV players to start two-way communications required for Internet services.

  • Home Cable Network approaches TRAI against Star Sports

    Home Cable Network approaches TRAI against Star Sports

    MUMBAI: Delhi-based multi-system operator (MSO) Home Cable Network, which has for long been facing issues with Star Sports channels, has now written to the Telecom Regulatory Authority of India (TRAI) seeking its intervention in the resolution of the matter, which first arose in November 2013, after the interconnection agreement between the MSO and Star Sports expired on 31 October, 2013.

     

    Home Cable Network, in its letter to TRAI, has said that since expiry of the agreement with Star Sports, it has found abnormalities in the rates charged by the broadcaster. “We have been making representations to Star Sports executives, informing them that the rates charged on a per subscriber basis are not at par with the rates being charged by the network to various other MSOs. Due to this, our business is getting adversely affected,” reads the letter, a copy of which is in the possession of indiantelevision.com.

     

    “We have always been asked by Star Sports representatives to either sign on the exaggerated subscriber base with CPS rates or sign up on RIO rates which again are five to ten times higher as compared to the rates offered by them to favoured MSOs,” the letter further states.

     

    The move comes after the 10 February release of the TRAI regulation on content aggregators. “It was in this regulation that TRAI itself noticed irregularities in interconnection agreements. The regulation was an eye-opener, wherein MSOs like us were informed that the rates being charged from non-vertically integrated DPOs were in some cases higher by 62 per cent as compared to vertically integrated DPOs.

     

    The TRAI also brought to our notice that the rates charged by broadcasters to smaller, non-vertically integrated DPOs were higher by about 85 per cent as compared to vertically integrated DPOs,” said Home Cable Network managing director Vikki Choudhry.

     

    He informed that Home Cable Network has approached TRAI under clause 5.11 of the “Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations, 2012” to facilitate the “process of entering into an agreement between Home Cable and Star Sports with just and equitable terms and conditions which help in creating a level playing field between the competing MSOs.

     

    The MSO has given a period of seven to ten days to TRAI to respond to its letter. “After the expiry of this tenure, we will approach The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against Star Sports,” Choudhry said.

     

    In the case against Star Sports channels, Home Cable Network plans to make TRAI respondent number one and Star Sports respondent number two. “If TRAI is unable to create level playing fields, MSOs will start making the regulator a party in the disputes with the broadcaster,” Choudhry concluded.