Tag: pay channel

  • Sanjeev Kapoor on FoodFood’s FTA avatar, DD Free Dish & TRAI tariff order impact

    Sanjeev Kapoor on FoodFood’s FTA avatar, DD Free Dish & TRAI tariff order impact

    MUMBAI: With the new tariff order bringing in a major change to India's television distribution, several broadcasters are adopting alternative ways to stay relevant in the ecosystem. Chef Sanjeev Kapoor-promoted FoodFood channel is among those trying to negate the impact of the new regulatory framework by converting it into a free-to-air channel from its current pay model to maintain its reach. Ahead of its 11 July FTA launch, Kapoor interacted with Indiantelevision.com to outline the reasons behind the decision and offered insights into the category his channels operates in.

    What was the objective behind taking this call?

    When the tariff order was released, we were contemplating how to approach this. We realised that we should keep it the way it was and when the dust settles, we will take the call depending upon which way the viewership is moving. We studied and evaluated what the viewership patterns are, how things are moving, what is happening in the market, what is happening to specialty content, what’s the best way to approach it and we realised that for a single channel without bouquet strength the best way is to approach it differently. When there are bouquets, no matter what the order says that this can not be done, the reality is that bouquets for large players are much simpler and easier. Whether it is through Facebook, Youtube, we see that food content consumption has gone up exponentially on digital whether. The only way to bring it at par with what the consumer needs and demands is to increase the reach and that’s why we took this call.

    What were your key observations from three-four months of tariff order implementation?

    So as we know the overall viewership has dipped, that is because the reach is not there because you aren't there. Then, how does the viewer find you? Whether it is an MSO, DTH, small LCO, how do you get discovered? In a-la-carte, when you try to educate a person, it takes time and effort and when a single channel does not have the power to fight that, then it becomes very difficult. Even in my house it took my personal intervention to get Food Food, so it would be difficult for normal viewers. So to break this resistance, one must go the FTA way. We believe it will be better now because if the pressure of paying the broadcaster is not there, hopefully, it will be better. We evaluated Free Dish as well. It format have any specific advantage for a smaller channel. For devotional channels, there is a lesser fee but for specialty channels like us it is not beneficial.

    Do you see consolidation, mergers or more channels being added in the category you are operating in?

    Difficult to say. Bigger broadcasters with 40-50 channels have their own challenges. Some of them are shutting down, some of them are rationalising. In such a case, consolidation is the most obvious choice but really we have not seen that happen yet because these are early days. For people like us, fortunately, it's not something that bothers us too much because we have over 1200 hours of high quality HD content. We have the ability to syndicate, licence and monetise through multiple ways. So we are not too worried.

    Do you have to spend more on content to attract consumers as the new tariff order puts power in their hands to pick and chose?

    I would say that even if the power is given, if the consumer cannot use it how is it going to help. You can be FTA and still not be present as the must-carry rule is no longer there. How do you ensure that? Though digital has come to the rescue but at whose cost? It’s not at the cost of content creators or at the cost of distributors. There used to be a normal camera now there are more digital cameras. There could be transitions. Three years ago when I visited the US, people were talking about cutting the cords and if that is a global phenomenon that has to come. The power of content will stay. We consider that as content creators we distribute content through different platforms and whenever consumers find it convenient to access our content, they will consume it there.

    How do you plan to monetise your content across digital?

    We already do. We have a fairly large plan on digital. So, our overall community including Food Food is over 20 million that across platforms could be Facebook, Twitter, YouTube etc. We use that community to reach out to core Food lovers. We work very closely with brands. We are launching a series on biryanis. We have Dawat Biryani Rice on board as a large partner for that.

    Do you see your revenue more skewed towards digital in the near future?

    I would guess so.

    Do you tweak your programming in terms of going from pay to FTA?

    Our focus does not change. We want to stay focused on who we are. We don’t want to really change the programming too much.

    Do you see a change in nature of your core viewer given that you are a free platform now?

    It’s difficult to say. We want to stay core to our value and we will see if in each market we have enough consumers. We want to work with all the distributors in creating something unique and special for them. So, we don’t want to change the core product. We want to give a few things which no other TV channel can do.

  • Star Utsav to go pay from 16 August

    Star Utsav to go pay from 16 August

    MUMBAI: More than a decade after its launch, Star Plus’ sibling free-to-air (FTA) channel, Star Utsav, is set to go pay from midnight of 16 August, 2015, on all cable and direct-to-home (DTH) platforms. 

    “The channel’s FTA contract is about to end on 15 August, 2015 and it does not plan to re-new or extend it further,” sources close to the development told Indiantelevision.com.

    The channel will be priced at Rs 5 on Tata Sky, at Rs 6 on Videocon d2h and at Rs 3 on Hathway Cable and Datacom. Through this development, the channel now aims to earn revenues from both ad and subscription based route. 

    It can be recalled that the channel witnessed a new logo and packaging in the month of January this year to tap and engage with the rural consumers, while keeping at pace with the urban audience. Moreover, it had changed its programming from six days a week to the entire week designed to mirror the daily routines of its viewers.

    According to a media expert, the purpose of launching Star Utsav was to reach out to its desired TG in smaller cities and towns where audiences were not exposed to Star Plus. However with the channel going pay, the expert doubts whether the channel will get the desired visibility. “The logic to me is unclear, why would consumers want to pay for a repeat content? The move makes sense when the channel experiments by bringing in original content for the same audiences,” he said.

  • TRAI issues new tariff order to balance consumer rate and broadcaster demands

    TRAI issues new tariff order to balance consumer rate and broadcaster demands

    NEW DELHI: In a major initiative aimed at simplifying tariffs and meeting demands of consumers, the Telecom Regulatory Authority of India (TRAI) today issued a new tariff order which apart from fixing tariffs also amended the definition of addressable systems (DAS) as understood at present.
    The Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Fourteenth Amendment) Order, 2015 said “addressable system” means an electronic device (which includes hardware and  its  associated  software)  or  more  than  one  electronic  device  put  in  an integrated system through which signals of digital addressable system can be sent in encrypted form, which can be decoded by the device or devices, having an activated Conditional Access System at the premises of the subscriber within the limits of authorisation made, through the Conditional Access System and the subscriber management system, on the explicit choice and request of such subscriber, by multi-system operator or DTH operator or IPTV operator or HITS operator  to the subscriber; and the expression “non-addressable system” shall be construed accordingly.
    The Order shall come into force on the date of its publication in the Official Gazette.
    The order also specifies that it will apply to specified states, cities, towns and areas notified from time to time and not the entire country.  
    The order has specified that if any new pay channel is launched or any free-to-air channel is converted to pay channel after the first day of January 2015, then the ceiling shall not apply if the new pay channel or pay channel converted from free-to-air to pay channel is provided on a standalone basis, either individually or as part of new, separate bouquet.The broadcaster shall declare the genre of its channels and such genre shall be either News and Current Affairs or Infotainment or Sports or Kids or Music or Lifestyle or Movies or Religious or Devotional or General Entertainment (Hindi) or General Entertainment (English) or General Entertainment (regional language).
    The rates of channels, referred to in the first proviso shall be similar to the rates of similar channels existing as on the date of such launch of new channel or such conversion of free-to-air channel into a pay channel and the ceiling of charges, specified under sub-clauses (a), (b) and (c) shall not, in any case, exceed by the rates of channels referred to in the third proviso.
    In case a multi system operator or a cable operator reduces the number of pay channels that were being shown on the date of coming into force of the Telecommunication(Broadcasting and Cable) Services (Second) Tariff (Fourteenth  Amendment) Order 2015, the ceiling shall be reduced taking into account the rate(s) of the channel(s) so removed. In the case of the commercial subscriber, for each television connection, the charges payable by the Ordinary cable subscriber under sub-clause (a), shall be the ceiling.

    If a commercial subscriber charges his customer or any person for a programme of a broadcaster shown within his premises, he shall, before he starts providing such service, enter into agreement with the broadcaster and the broadcaster may charge the commercial subscriber, for such programme, as may be agreed upon between them.
    The charges referred to in sub-clause (a) shall in no case exceed the maximum amount of charges specified in the Part I or Part II, as the case may be, of the Schedule annexed with this Order.”
    In determining the similarity of rates of similar channels referred to in the provisos below clause 3 above the following factors shall be taken into account:
    (i)  the genre and language of the new  pay or converted Free to Air  to pay channel; and
    (ii) the range of prices ascribed to the existing channels of similar genre and
    language in the price of a bouquet(s) and prices of bouquet(s) that exist.”
    Every broadcaster shall offer or cause to offer on non-discriminatory basis all its channels on a-la- carte basis to the multi system operator or the cable operator, as the case may be, and specify an a-la-carte rate, subject to provisions of sub-clause (2) of this  clause and clauses 3 and 3B, for each  pay channel offered by him.
    In case a broadcaster, in addition to offering all its channels on a-la-carte basis, provides, without prejudice to the provisions of sub-clause (1), to a multi system operator or to a cable operator, pay channels as part of a bouquet consisting only of pay channels or both pay and free to air channels, the rate for such bouquet and a-la-carte rates for such pay channels forming part of that bouquet shall be subject to the following conditions, namely:-
    (a) the sum of the a-la-carte rates of the pay channels forming part of such a bouquet shall in no case exceed one and half  times of the rate of that bouquet of which such pay channels are a part; and
    (b) the a-la-carte rates of each pay channel, forming part of such a bouquet, shall in no case   exceed three times the average   rate of a pay channel   of that bouquet of which such pay channel is  a part and the average rate of a pay channel of the bouquet be calculated in the following manner, namely:
    If the bouquet rate is Rs. ‘X’ per month per subscriber and the number of pay channels is ‘Y’ in a bouquet, then  the average pay channel rate of the bouquet shall be Rs. ‘X’ divided by number of pay channels ‘Y’:
    Provided that the composition of a bouquet existing as on the 1 day of December 2007, in so far as pay channels are concerned in that bouquet, shall not be changed: and nothing contained in the first proviso shall apply to those bouquets of channels existing on the first day of December 2007, which are required to be modified pursuant to the commencement of the Telecommunication (Broadcasting and Cable Services) Interconnection (Seventh Amendment) Regulation, 2014.
     
    If there is a bouquet, comprising of 10 channels of 3 broadcasters as per the following details.

    After  the  reconfiguration  the  bouquets  to  be  offered  by  the  individual broadcasters shall be as under:
    Broadcaster B shall offer the bouquet as per the following details

    Broadcaster C shall offer the bouquet as per the following details:

    While the Broadcaster A can offer channel 1 at a-la-carte rate of Rs. 2.”
    TRAI has aslo appended an Explanatory Memorandum which traces the history of discussions and orders over the last 11 years on its website trai.gov.in.

  • Sea TV Network reports higher income, higher pay channel charges lower PAT for Q2-2014

    Sea TV Network reports higher income, higher pay channel charges lower PAT for Q2-2014

    BENGALURU: UP based Agra headquartered media and entertainment industry player Sea TV Network Limited (sea TV) reported a 43.13 per cent increase in its standalone net income from operations for Q2-2014 at Rs 4.88 crore as compared to the Rs 3.41 crore for Q2-2013 and 11.15 per cent higher than the Rs 439.1 crore for Q1-2014.

     

    PAT for Q2-2014 at Rs 0.0773 crore was a little over one fifth the Rs 0.3658 crore for Q2-2013 and a little more than a fourth of the Rs 0.3024 crore for Q1-2014.

    Exceptional items at Rs 0.2134 crore added to the company’s profit.

     

    Pay channel charges form a major portion of Sea TV’s expenditure. The company paid Rs 1.56 crore during Q2-2014 against this head, 63.6 per cent higher than the Rs 0.9533 crore for Q2-2013 and 64.4 per cent higher than the Rs 0.9463 crore for Q1-2014.

     

    Let us look at the other results recorded by Sea TV for Q2-2014

     

    Expenditure for Q2-2014 at Rs 4.32 crore was 55.9 per cent higher than the Rs 2.78 crore for Q2-2013 and 17.7 per cent more than the Rs 3.67 crore for Q1-2013.

     

    Depreciation  for Q2-2014 at Rs 1.1343 crore jumped up almost six-fold (5.78 times) as compared to the Rs 0.20 crore for Q2-2013 and was almost flat (lower by 0.28 per cent) as compared to the Rs 1.1375 crore for Q1-2014.

     

    Other expense for Q2-2014 at Rs 1.0625 crore was 1.9 per cent lower than the Rs 1.0832 crore for Q2-2013 and 1.5 per cent lower than the Rs 1.0469 crore for Q1-2014.

     

    Reserves, excluding revaluation reserves at Rs 48.80 crore were 2.24 per cent higher than the Rs 47.73 crore for Q2-2013 and almost flat (0.16 per cent more) than the Rs 48.72 crore for Q1-2014.

  • Pay channel rates: HC seeks government response

    Pay channel rates: HC seeks government response

    MUMBAI: The Delhi High Court has issued notice to the central government for its response to a petition filed by Star India challenging the Trai (Telecom Regulatory Authority of India) order capping pricing of pay channels at Rs 5 under conditional access system (CAS).

    The matter will come up for next hearing on 15 November. The court will examine whether Star’s fundamental right to do business in India stands affected by the price regulation.

    Star has the option to approach the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

    “Our writ petition has been admitted by the court and has been slotted for hearing on 15 November. We will only know then if our plea stands accepted or rejected,” says a Star India spokesperson.

    Senior advocate Mukul Rohatgi, appearing for Star, argued that the regulation of broadcasting was beyond Trai’s jurisdiction.

    Star had filed an appeal in the court, challenging the basis of Trai’s recent announcement on pricing for CAS. The matter came up for hearing today.