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Tag: post-CAS

  • Consumers will slowly adopt set tops post-CAS: Morgan Stanley

    NEW DELHI: Considering that cable television is the cheapest form of entertainment in India, a Morgan Stanley (MS) research on conditional access system (CAS) estimates that consumers will “eventually adopt” the set-top boxes needed in a CAS regime. Because the market is price sensitive one, the rate of adoption is likely to be “slow”.
    “As most of the compelling content will be in the pay mode, we believe the consumer will eventually adopt the set-top box (STB). The rate of penetration will remain the key factor, in our view,” the MS report states.
    According to Morgan Stanley estimates the top income brackets are also the first targets for STBs with the highest level of penetration.
    The impact on consumers once CAS is rolled out will be as follows, according to Morgan Stanley:
    *The investment in a set top box (STB) is likely be one of the largest incremental spends for the low-income group households over the next few quarters.
    *Income demographics in the metro cities suggest that 27 pr cent of the total TV households (HHs) will be able to afford the STB either through outright purchase or rent.
    *The consumer will have to purchase or pay a refundable deposit to rent a STB, which will likely cost around Rs 2,000-Rs 3,500 for viewing pay channels.
    *Beside the STB refundable deposit, the consumer is likely to have to pay a monthly rental on STB of around Rs20-30 per month, depending on deposit amount.
    *The monthly cable bill of the consumer is also likely increase from the Rs150-Rs250 level to around Rs180-Rs330 depending on the pay channels they subscribe to.
    *The consumer opting to receive only FTA channels will not have to buy a STB. The cost of the FTA bouquet will be around Rs 100, compared with the current cable monthly bill of Rs 150-Rs 250.
    TV: CHEAPEST FORM OF ENTERTAINMENT & FASTEST GROWING
    Television has the highest reach across all socio-economic classes in India. More importantly, the time spent watching television is increasing, as it is the cheapest form of entertainment for any household in the country, especially for low-income households.
    Prior to 1991, Indian television households received reception from only one state-owned terrestrial broadcaster, Doordarshan. AT presently, cable TV households receive nearly 50-100+ channels depending on their service provider.
    The growth of TV households has been 11% annually for the past decade. Morgan Stanley estimates the number of TV households to have grown to 85 million in FY2003 from about 25 million in FY1992. Cable TV was introduced in India in 1991.
    Dwelling on the penetration levels, the report states that it has increased to 44 million households. This is equivalent to 90 per cent of new TV households for the past decade. Cable television households have grown at a 40 per cent compound annual rate over the past decade, while cable television penetration is nearly 52 per cent of TV households and 23 per cent of total households in India.
    Compared to some other sectors, the penetration of television as well as cable television has been the fastest in the country if juxtaposed against growth in fixed telephone line users or two wheelers, indicating the desire and need for cheap entertainment.
    CONSUMER PRICE ELASTICITY – UNKNOWN FACTOR
    Pointing out that the “biggest uncertainty” is the price elasticity of the consumer and the latter’s propensity to spend on a gadget, which will not likely give the consumer any additional benefit, the report says, ” The industry will need to try to change the consumer’s mindset for adoption of CAS. We believe that the Indian consumer is extremely price-sensitive and will likely be slow in adopting the STB. “
    Consumers are likely to be able to purchase or pay a refundable deposit of Rs2,000-Rs3500 for a digital STB as some MSOs have launched early-bird schemes with a Rs. 999 refundable deposit to accelerate penetration.
    “Although the boxes will likely be available with attractive financing schemes, this would mean a high one-time expenditure. We believe that consumer resistance to the STB should be high initially, but expect the STB penetration to accelerate gradually as most of the compelling content is available on pay channels,” the MS report goes on to add.
    Though the pay channels have not yet come out with their pricing —an earlier pricing now will have to be reworked — Morgan Stanley feels that the average increase in monthly cable bill for the consumer to receive all channels is likely being around 20-120 per cent. “However, the consumer may not take all the pay channels and thereby reduce the monthly cable bill,” the report explains.
    CHANGE IN URBAN SPENDING PATTERNS
    Data compiled by Central Statistical Organization shows that the urban consumption-spending pattern has been changing over the past few years. The private capital consumption expenditure has recorded a 14.1 per cent compounded annual growth rate (CAGR) in nominal terms and 4.00 per cent per annum in real terms between 1994-2000.
    The growth rate is in line with the growth in per capita income during the period. However, the areas that have grown ahead of the average spending growth are healthcare, education and entertainment.
    “We believe this is especially true for middle-income groups. After growing ahead of the averages, the traditional non-durable goods have grown only in line with the averages,” the MS research states. The decline in the proportion of spending on essentials has been compensated for by the increase in spending on healthcare, education, and recreation.
    The latter is being mainly driven by an increase in aspirations and the availability of better-quality products and services. “While the consumer has been shown to be willing to spend on entertainment, the key issue is whether the consumer will spend a higher amount of money to get the same channels and content as before,” MS poses a question that is haunting even the cable and broadcast industry in the short term.
    The propensity by the consumer to spend on the STB and pay a likely higher monthly cable bill will mainly be driven by compelling content. In fact, the ability of the pay bouquets to charge for their content currently is an indication of the consumer pull for their bouquet.
    Second, most of the top channels with high reach are part of one of the three key bouquets – Star, Sony, or Zee. Current viewership patterns suggest that the pay channels have significantly higher viewership compared with the free-to-air (FTA) channels. “Consequently, we believe that the consumer’s desire to watch compelling content will drive the former to invest in a STB and pay a higher monthly bill,” the report states.
    The rate of conversion, of course, will remain debatable.
    CONSUMER DEMOGRAPHICS IN METROS
    The four metro cities are likely to have 6 million cable TV households (HHs) out of a total of 9 million households, implying an average penetration of nearly 64 per cent.
    While the cable TV penetration is estimated to be over 70 per cent in Mumbai, Delhi, and Chennai, it appears to be the lowest in Kolkata at 40 per cent, the report says.
    There are 4.06 million households in the top two income groups (income above Rs105,000 per annum) and they comprise nearly 45 percent of the total metro households and 68 per cent of the total cable TV households in the metro. “This will be the likely target population for the STBs. We believe that a STB penetration rate of 25 pr cent or 1.5 million household is achievable in the first year,” the reports points out.
    There are 2.4 million households in the high-income group and they comprise 27 per cent of the total households in the four metro cities. These households are likely be the first ones to adopt the STB, according to MS estimates, while the price of the STBs will be around 2.5 per cent of their annual incomes.
    The monthly cable bill (assuming Rs330/month for all pay channels) is likely to be around 3 per cent of their average monthly income. More importantly, the incremental spend of Rs30-Rs150 should be only 1.2 per cent of the monthly household income.
    The income levels of the upper-middle-income group household ranges from Rs105,000 to Rs140,000 per annum. These households should adopt the STB over a period of time, but the price elasticity of these households is likely be “very high and the rate of adoption likely to be slow”.
    There are 1.68 million households in the upper middle-income group and they comprise 19 per cent of the total households in the four metro cities. The price of the STB will be around 3.3 per cent of annual income. The monthly cable bill (assuming Rs330/month for all pay channels) is likely to be around 3.7 per cent of their average monthly income.
    More importantly, the incremental spend of Rs30-Rs150 is likely to be only 1.7 pr cent of the monthly household income.
    There are 20.4 million households in the top two income groups (annual income above Rs105,000 per annum) and they comprise only 12 per cent of the total households in the country, but nearly 46 per cent of the total cable TV households.
    “This will be the likely target population for the STB. We believe that a STB penetration rate of 32 per cent or 23 million household is achievable by FY2008,” Morgan Stanley concludes.
    SOME STATISTICS:
    Cost of Entertainment in India
    Amount a user pays (Rs.)
    DVD rental 125
    VCD rental 30-80
    Movie ticket in a metro area for three hours 25-150 
    Music cassette 25-125 
    Pre-CAS
    24-hour TV w/>50-100 channels per month 150-250
    Post-CAS
    Set Top Box Purchase / Deposit 2,000-3,500
    24-hour TV w/>50-100 channels per month 180-330
    (Source: Morgan Stanley Research)
    Penetration Levels in India, F2003
    Number (millions) 
    Number of TV Households 85.1 
    Number of C&S Households 44.1 
    Number of PC’s in India 6.8
    Number of Internet Users 6.0 
    Number of Cellular Users 14.4 
    Number of Fixed-Line Users 40.4
    Number of Fixed-Line Users 40.4 
    Number of 2-Wheeler Owners 42.0 
    (Source: FICCI, Industry Data, Morgan Stanley Research)
    Pay Bouquet Subscription Rates
    Calendar Year (Rs / Month)    2001    2002    2003    Post-CAS
    Zee Turner    41    42    55    55
    Star Network    30    41    30    30
    ESPN-Star Sports    16    24    32    32
    SET-Discovery    22    40    55    55
    Modi Bouquet    9    13    13    13
    Total    118    160    185    185
    FTA Tier    –    –    –    72
    Tax    36    38    45    51
    Total    154    198    230    308
    Average Cable Bill to Consumer    100-150    125-200    150-250    150-300
    (Source: Morgan Stanley Research)
    Channel Reach in the 4 Metros
    Bouquet    Mumbai    Kolkata    Delhi    Chennai
    Zee Bouquet
    Zee TV    85.9    91.5    83.4    24.8
    Zee Cinema    74.6    92.4    66.2    8.2
    Cartoon Network    45.4    44.3    50.6    43.8
    Zee News    48.6    37.9    70.6    0.0
    One Alliance
    MAX    87.4    97.3    79.0    49.2
    SET    86.8    91.7    82.0    34.5
    HBO    53.6    61.4    49.8    43.7
    Discovery    53.9    58.1    45.7    30.6
    Star Network
    Star Plus    87.9    89.9    89.8    37.3
    Star Movies    61.5    62.9    41.8    54.7
    Star Gold    69.9    62.8    68.7    0.8
    Natl Geographic    46.9    64.4    46.4    36.3
    (Source: Satellite and Cable TV magazine)

    Also Read:
    Morgan Stanley’s latest CAS report emphasises addressability benefit

  • Indiantelevision.com to host first ever CAS summit on TV ad scenario post CAS

    Indiantelevision.com to host first ever CAS summit on TV ad scenario post CAS

    MUMBAI: India’s First ever CAS Summit on the TV Advertising Scenario Post CAS will be held on 4 July at the Hyatt Regency Mumbai.
     

    Hosted by indiantelevision.com, the National CAS Media Summit has over 300 trade professionals scheduled to attend the event that will be a meeting ground for advertisers, media planners/buyers, broadcasters and market researchers. Associate sponsors for the summit so far are Media Reach Research India Pvt Ltd and Broadband Pacenet India Pvt Ltd. 

    The burning issue of whether advertisers will begin shunning pay channels after the 14 July deadline will be addressed at the summit from the advertisers’ point of view, the media professionals’ angle and the broadcasters’ side too. At the same time, the question of FTA channels benefiting in terms of ad revenue at the cost of the pay channels will also be deliberated upon by all three. The hitherto unexplored option of cable channels and whether they too stand to benefit from the implemention of conditional access systems in the country will also be touched upon.

     
    Meenakshi Madhvani, eminent media professional , Sandip Tarkas, president, Media Planning Group, Sameer Nair, COO, Star India Ltd, Kunal Dasgupta, CEO, SET India, Pranav Barua, Godrej Ltd, Paulomi Dhawan, Raymonds, Amit Ray, VP, Optimum Media (Mudra), Divya Radhakrishnan, VP, The Media Edge, and Ashutosh Shrivastava, GM, planning, Mindshare, are some of the panellists who will speak on the issues touched upon.

    While audience measurement for television has thus far been the preserve of ratings like TAM, CAS is poised to usher in an era that will force us to look beyond ratings. A panel comprising experts like TAM India CEO LV Krishnan, media expert Raj Nayak, ETC Networks business head Jagjit Singh Kohli and Media Research marketing VP Kapil Anand will attempt to unravel the logistics involved. 

    CAS may well be the necessity that will foster a series of innovations on the part of all players connected to the television industry. Sam Balsara, chairman, Madison Communications Ltd, Ravi Kiran GM south & west, Starcom Worldwide, Vikram Sakhuja, managing director, Mindshare Fulcrum South Asia, M Suku, national director, Broadmind , Jasmin Sohrabji Grey Worldwide and a senior representative from Pacenet will attempt predictions based on their vast experience to envision what kind of innovations the morrow will bring.

    Pacenet, Hathway, Siticable and In Cablenet, the major players in the STB arena, will demonstrate their products and their respective merits at the summit. 

    The moderators of the various sessions at the summit will be Anil Wanvari, founder and CEO, Indian Television Dot Com, Thomas Abraham, managing editor, indiantelevision.com and Samir Kale, president, CMCG.

  • MagnaQuest to manage post-CAS operations of BroadBand Pacenet

    MagnaQuest to manage post-CAS operations of BroadBand Pacenet

    MUMBAI: Global Customer Management & Billing (CM&B) solutions provider MagnaQuest Solution has been chosen to provide its subscriber management system (SMS), MQSubscribe, to BroadBand Pacenet.

     
    MagnaQuest Solutions delivers solutions to organisations providing data, video and content services.

    BroadBand Pacenet is a newly formed multi-system operator (MSO) set up by the promoters of Win Cable (now a 100 per cent subsidiary of Rajen Raheja’s Hathway cable and Datacom). It plans launching Pay TV services initially on the terrestrial platform and later on moving to the HITS platform as and when the regulatory environment is clear.

    Director, BroadBand Pacenet Jagjit Singh Kohli said, “We will stand out in the market place in the post-CAS regime after 15 July, with our open CAS initiative and the indigenously designed set top box. By selecting a competitive domestic SMS solution provider, MagnaQuest, who understand the Indian pay TV scenario and have a global quality solution, we are confident of receiving good support.”

    BroadBand Pacenet CEO S Ravindran said, “Secura – our Open CAS system is based on international security standards such as DES, AES and RSA – which coupled with Home Genie, our set top box, brings affordable yet safe programming to the subscriber. We also look to MagnaQuest to supplement our efforts in our Payment Gateway initiative with their proven expertise in system integration and smart-card based applications as well.”

  • B4U to cost Rs 10 post-CAS; 50%+ margin to cable op

    B4U to cost Rs 10 post-CAS; 50%+ margin to cable op

    MUMBAI: MTV India’s pay-driven sister Nickelodeon was the first to declare its rate. Now B4U Movies has announced it will remain a pay-channel after CAS at Rs.10 per subscriber per month. The channel has also stated that it will offer the highest revenue share to the cable operator among all channels.

     
    Since Zee TV has been on record saying it is willing to offer a 50 per cent revenue share, that would mean B4U would have to cross that margin.

    Speaking to indiantelevision.com, Debashis Dey, chief distribution officer, B4U Television Network, said while no definite margin had as yet been worked out, B4U Movies would match and better the best offer in the business. When it was pointed out to him that Zee was ready to offer 50 per cent, Dey confirmed that if 50 per cent was the highest margin in the market, B4U would go higher than that, but did not provide a definite number.

    Kids’ channel Nickelodeon had earlier declared it would cost Rs 3 per subscriber per month and is reportedly ready to offer 30 per cent of subscription revenue to the cable operator.

     
    Offering his views on the vexed CAS issue, Dey said the biggest flaw in the present system was that open architecture and inter-operability had not been mandated as a prerequisite for the set top box. “Ignoring all other areas of controversy, as many friends and consumer bodies are truly concerned and working on the same, CAS defeats it own objective in one big sense – in not providing freedom of choice to the viewers. Unlike the DTH law, which specifies a box with an open architecture and inter-operability, which means that the consumer can buy a box and dish from the market and choose his or her service provider. The same should have been for CAS also, as a closed system of encryption again sponsors monopoly and subsequent unethical practice, be it overhand or underhand. The consumer remains stuck with one MSO, one box and one particular package and totally vulnerable to exploitation, Dey points out. 

    Adds Dey, “The solution remains with the government and it should either specify a set top box with a common interface or a single encryption for the whole country. This will truly give the freedom of choice, to the broadcaster, the operator and the consumer (who can choose any service provider of his or her choice) in every sense. Competition will bring out the best in services, in pricing and in value additions. We are also confident that the cable operators will once again wake up to this call and meet the techno-commercial demand. All of them are very much capable.”

    Dey also made a dig at broadcasters lobbying for the bundling of pay channels (Zee on Saturday said it was petitioning the government towards this end). “Bundling defeats the very essence of CAS and the government should take all necessary steps to put an end to such unethical practices which promote exploitation of viewers and stop such marriage of conveniences between broadcasters, which we are witnessing now.”

  • First 2 years post-CAS will see drop in ad, subscription revenues: Fitch report

    First 2 years post-CAS will see drop in ad, subscription revenues: Fitch report

    MUMBAI: More on the worry lines for the pay broadcasters over conditional access and its implications. A new report by international ratings agency Fitch estimates that the next two years after rollout will see a substantial decline in advertising and subscription revenues of broadcasters due to slow penetration of CAS.
     
     
    wGross rating points (GRPs) for most leading pay channels like Star, Zee and Sony are likely to fall, which may translate into a drop in advertising revenues, the report titled “Cable TV – A New Beginning”, says. There is a silver lining to this gloomy picture though. And that is that if the broadcasters manage to price their channels competitively, such that the payout for consumers is maintained at current levels, they will be able to ramp up the penetration in the next two-three years, resulting in considerable gains. Now isn’t that just what information and broadcasting minister Ravi Shankar Prasad has been trying to get the pay broadcasters to do.

    Taking a bigger picture perspective, Fitch sees MSOs and broadcasters as the biggest beneficiaries in the medium to long term from the implementation of conditional access. Thus, while there is short-term uncertainty about CAS, in the long run, Fitch expects that the broadcasters and MSOs would derive considerable gains from the implementation of CAS.

    Initial estimates suggest that CAS would be able to penetrate up to 30 per cent of the metro households in the first year and up to 50 per cent of the metro households in the second year of implementation. At 50 per cent penetration, MSOs and broadcasters would earn additional revenues of Rs2-2.5 billion each. However, since customer additions will occur over the full year, the benefit of these additional revenues would be spread over the period of next two years. Over a period of time, increase in penetration and negotiations with LCOs for higher share of revenues would lead to a further increase in revenues. Fitch believes that the cable TV industry would restructure itself along three levels:

    Increased Reach: The immediate impact of CAS would be increased reach for broadcasters and MSOs. This would arise from two areas – higher household declaration and higher revenues from households with multiple TVs. Earlier the cable industry suffered from gross under-declaration of households – but with CAS, MSOs and broadcasters will know the exact number of households subscribing to their channels and, thus, get paid for them.

    Further, most households, with multiple TVs, currently pay only for a single cable connection. With CAS technology requiring one set-top box per television, the revenues from households with multiple TVs will also increase. Thus, if broadcasters are able to price their channels competitively and CAS gains acceptance with the consumers, it will lead to increased revenues for MSOs and broadcasters over the medium to long run. In this scenario, CAS will largely diminish the control of the LCOs and ICOs in the service chain.

    Value Added Service: At increased penetration, CAS would throw up new opportunities for the MSOs. At the next level, MSOs would be encouraged to provide value-added services to the customers, like pay-per-view, video-on-demand, cable Internet, interactive television services, etc., which are expected to pick up over the next decade. This would lead to additional sources of revenue for the MSOs and would strengthen their hold on the industry.

    Consolidation: Finally, CAS will result in consolidation of the industry. Over a period of time, Fitch expects MSOs to expand and acquire primary subscribers. This would give them substantial bargaining power in the industry and would also help them in implementation of value added services. Over a period of time, LCOs would be relegated to the role of collection and customer support agencies. As CAS would require substantial investments at the head-ends, which ICOs would not be able to meet, Fitch expects ICOs to sell their businesses to the MSOs.

    The cable industry will reorganise itself, with broadcasters giving the signals, MSOs acting as wholesalers of these signals and LCOs acting as final retailers and collection agents. According to Fitch estimates, at 50% penetration MSOs and broadcasters would garner close to 50% of the total metro revenue of the industry over the next two years, from the 25% that they earn currently. As the penetration levels increase and CAS gets implemented in the other cities, the revenue equation is expected to tilt in favour of the broadcasters and MSOs.

    Impact on the Television Industry: The four metros account for 15-20 per cent of the total television sales. A major part of the television sales from the metros comes from replacement demand and demand for a second set. With CAS making it necessary for every television set to pay for the pay channels, the purchase rate of second television sets is expected to decline. Thus, there would a marginal impact of CAS on television sales in the metros. This is based on the assumption that the average cost to consumer per cable connection would remain at reasonable levels. However, in the other places, television sales would be largely determined by other factors like income levels, major sporting events and other high viewer interest events.

  • Nickelodeon declares post-CAS price of Rs 3

    Nickelodeon declares post-CAS price of Rs 3

    MUMBAI / NEW DELHI: Remember the 10 June deadline that the government had initially set for all pay channels to declare their pricing mechanisms. While the speculation now is that some announcements in this regard are expected tomorrow or the day after, one pay channel did play ball, and that too on the stipulated date.
     
     
    Viacom kids’ channel Nickelodeon informed the government on 10 June itself that it would be priced at Rs 3 in a post-CAS situation, Sanjeev Hiremath, vice-president, network development, South Asia, licensing and merchandising, confirmed to indiantelevision.com.

    Thus Nick remains the only pay channel to have honoured the government timeline in the matter. Of course French fashion channel FTV has already announced that its “upper crust” sibling FashionX TV would be available to pay subscribers at Rs 30 post-CAS. But FashionX is not on air at present and there remains a big question mark over whether it will be available by the CAS rollout deadline of 14 July.

    Queried as to the possibility of mature sibling music channel VH1 (it debuts in Asia this month) coming to India under a CAS regime, Hiremath said that a final call on that could only made after matters had settled down somewhat. Hiremath was clear on one point though. And that is that MTV would remain free to air, CAS or no CAS.

  • Hallmark to stay pay post CAS

    Hallmark to stay pay post CAS

    MUMBAI: Hallmark may continue struggling to find its ground in the country but it is certainly sticking to its guns on the pay vs. free to air debate. The channel will stay pay in a CAS environment unlike FTV.
     

    Hallmark India’s GM Amitabh confirmed the same to indiantelevision.com last night on the sidelines of a preview screening of The Crooked E: The Unshredded Truth About Enron. The film, which airs on the channel on 28 June at 10:30 pm, is based on the true story of how greed destroyed the Enron Corporation.

    Amitabh said that the broadcaster had worked out different pricing scenarios for the channel in a post-CAS environment. “There will different prices between the metros and non-metros and even within the metros there might be differences. We will look at what the other players are doing and accordingly we will declare a price,” said Amitabh.

     
    “I am sure that CAS will benefit Hallmark because as of now we are not getting fully paid from the metros. Our core viewership resides in the Metros. There will be initial confusion in the first few months till the set top boxes are rolled out,” Amitabh opined.

    Amitabh has now taken on the additional responsibilities of marketing and ad-sales coordination, both of which were earlier handled by Laxmi Hariharan who left in December. Both functions used to be managed out of the Singapore office which was shut down last year.

    Asked about the response the channel had received for its new programme initiatives, Amitabh was visibly disappointed that the Indian viewer had not taken to the reality series Adoption. “Adoption touches the heart and should have got a better response. Perhaps Indian audiences did not quite connect with it. This surprises me as this is a global issue and does not have boundaries. On the other hand Family Law has just started and the tempo is building up.”

    Dwelling on the new programme initiatives planned Amitabh revealed, “We have the drama series My Big Fat Greek Life coming on board from next month. This is an extension of the box office hit My Big Fat Greek Wedding and the film’s star cast, including lead actor Nia Vardalos, returns. The series picks up from where the film left off. The sitcom Mad About You (which is already enjoying a successful run on Zee English) will also air next month. In terms of time bands being looked at our focus will rest on the post 8:30 pm slot and the later time bands.”

    Asked whether the channel was looking at content localisation Amitabh said, “More and more programme selection is being done out of the Asia Pacific instead of the US. Indian Telefilms is something that we could certainly look at. We would look at those Indian films, which have a global feel so to speak. After all our feed is going across Asia and so other countries should also be able to make the connection.”

    On the revenues front Amitabh said, “25 per cent of our revenue is coming from ad sales and the rest is coming out of distribution. We could certainly improve on the ad sales front.”

    On the subject as to whether the channels marketing efforts over the past year involving theatre, radio, print, online had paid off or not Amitabh said, “We are seeing higher household reach. It is 12.5 million while earlier it was around 11 million. We have made a little change in our marketing strategy. Since we are a niche channel instead of adopting mass media tactics we are doing more in terms of direct marketing to the viewer.”

    “We are doing direct mailers, contests on msn as well as on other sites which people frequent. We have a microsite for India where there is a detailed listing of the programmes and specials we have on offer.”

    We will look at on ground events when we have a property that hooks viewers. For The Crooked E we are doing this screening here and in Delhi. To promote the film we are using the radio but not cinemas or outdoors.”

  • Pay channel prices to remain stable for 1-2 years post-CAS: Jawahar Goel

    Pay channel prices to remain stable for 1-2 years post-CAS: Jawahar Goel

    NEW DELHI: The prices of pay channels are not expected to be revised upward over the next 12 to 24 months after conditional access system in introduced in the four metros, Zee Telefilms additional vice-chairman Jawahar Goel said today.
     

    “I don’t foresee the pay channels increasing their susbscription rates in the next two years or as done by them regularly after CAS comes into force,” Goel said at a seminar organised here on ‘CAS: Myths & Reality’. The seminar was supported by the Cable Operators Federation of India and the National Cable & Telecom Association (NCTA), while indiantelevision.com was the online partner.

    Pointing out that CAS is good for the Indian cable industry, Goel said that he would not differentiate between pay and free to air channels, but would implore the cable industry to work towards carrying on the good work that has been done by them till now.

    Goel, along with TV Today Network CEO G Krishnan, Sahara TV president Mahesh Prasad, Eenadu’s I Venkat, Balle Balle TV’s JK Jain and TV Live’s Nalini Singh, was speaking at a session on broadcasters and the scenario that would emerge for them in a post-CAS regime. The session was moderated by indiantelevision.com’s executive editor Anjan Mitra.

    Goel also felt that the cable industry, which has grown quite comfortably up till now, is likely to grow to be a Rs 600 billion industry by 2010 if present growth rates are maintained.

    Taking this argument futher, Krishnan said that there is a huge opportunity for cable operators with the onset of CAS. “If there are 45 million cable homes at present in the country, the cable industry hs the potential of tapping the remaining 75 million TV homes,” he said.

    According to Krishnan, if the cable industry can convert the remaining TV homes into cable homes in a post-CAS regime, there is a goldmine waiting to be tapped. He also urged the cable industry to provide good service to the consumers as alternative technologies like DTH could kill the cable industry.

    Sahara TV’s Prasad said that in a post-CAS regime content would be king and the content would decide the fate of a channel irrespective of the fact whether it’s pay or FTA.

    Prasad also made a case that post-CAS these talks about pay channels’ suffering or FTA channels gaining are all humbug because if the content is good viewers will come to that channel.

    Earlier in the day, during another session Bhaskar Rao, chairman of Centre for Media Studies made a valid point that the government should not have mandated CAS as market forces would have made it an inevitability in due course of time.

    Those who spoke during the day-long seminar included Ashok Mansukhani of the HTMT, Vikas Srikand from Satyam Infoway, lawyer Prabhat Kumar. PK Acharya, director Konark Communication, amongst a host of others from the broadcast and cable industry.

    Parallel to the seminar attended by over 300 delegates, several companies also exhibited their products and technology.

  • UTV mulls launching a channel post-CAS

    UTV mulls launching a channel post-CAS

    MUMBAI: The conditional access system (CAS) will provide several opportunities to production houses as well. One of the biggest players in the market is already mulling plans to start a special content niche channel as well as approaching multi-system operators (MSOs) for the mandate of providing content.
     

    While addressing a selected group of journalists at his corporate headquarters in Mumbai, UTV group CEO Ronnie Screwvala didn’t rule out the possibility of the group starting it’s own niche (special content) channel. “The post-CAS environment is conducive to starting a special interest channel. We are examining all the possibilities but haven’t drawn up a final business plan as yet.”

    Screwvala also raised what he claims has been an “ignored point”. “The intention of moving towards a structured conditional access system is a good intention but the decision makers have missed an important link by not invoking the licencing regime. Even today, cable operators have to approach the Posts and Telegraph office for permission – they don’t actually get a licence from the other government authorities,” says Screwvala.

    Screwvala says that the control rooms of cable operators are generally located within the premises of cooperative societies and this scenario will continue post 14 July. “The monopoly issue has not yet been addressed. If the cable operators are forced to acquire licences, then the cooperative societies will have choice of at least two competitive cable operators. The licence regime will also ensure value additions.”

    Quoting the example of HBO (Home Box Office), Screwvala also says that multi system operators (MSOs) and cable distributors will feel the need for sourcing content that can be aired in the free-to-air band. “Abroad, several popular channels started by moving up the value chain in terms of providing content. Channels such as HBO have graduated through various levels of programming including in-house commissioning of series – resulting in shows such as Band of Brothers – amongst others.”

    When queried about the recent comments made by representatives of broadcasters that production houses will need to take a cut, Screwvala said that broadcasters need “more power on programming” to benefit from the tentpole programming strategy.

    “Post CAS, the demand and accent will be on high quality programming. Everyone will aspire to be in the Top 100 list in an attempt to lure audiences. The attraction of compelling content will entice consumers and make them invest in the set-top boxes. Otherwise, they will be very happy watching the 50-odd FTA channels provided by the MSOs,” Screwvala says.

    Screwvala emphasised that broadcasters aren’t sourcing content at unrealistically high levels. “We are definitely not being overpaid. The results are there to be seen on the screen. Over the last few years, the quality of content delivered by TV producers has improved dramatically not just on the leading channels but across all channels,” adds Screwvala.

    Screwvala adds: “Also, when more and more consumers start opting for pay channels, broadcasters will be forced to review the rates of their individual channels. The bouquet rates that are applicable today will no longer be applicable in a six-month time period post-14 July. However, in a country like India, it will take at least 18 months for things to settle down.”

    While claiming that “mirror” versions of pay channels might be a temporary phenomenon, Screwvala says that pay TV channels will benefit tremendously in the consolidation phase once the process of CAS implementation gains momentum.

    Screwvala also adds that UTV will reduce it’s dependence on cable and satellite programming – currently at 80 per cent and increase it’s exposure on the national broadcaster Doordarshan and its affiliate channels.

    “Well, this strategy is not linked to CAS but DD has opened up in the last few months. The policies are much more producer-friendly and we see an opportunity. We have always been actively associated with DD. Currently, our mix is 50:50 for regional DD channels vis-a-vis DD1. We hope to continue with the same proportion,” adds Screwvala.

    UTV is one production house which is definitely looking at the brighter side of things.

  • Future belongs to the consumer: Hathway’s Neeraj Bhatia

    MUMBAI: The Rajan Raheja owned multi-system operator (MSO) Hathway Cable and Datacom, in which Star India holds 26 per cent equity stake, has announced that it is ready to meet the 14 July CAS deadline. The company officials reiterated their stand that “the future will belong to the consumer”.
    While addressing an informal press meet in Mumbai, Hathway Cable and Datacom vice-president Neeraj Bhatia said: “In time to come, the cable trade would witness many changes, including customer service and friendliness.”
    While speaking to indiantelevision.com, Bhatia said: “The future battles will not be about encryption technology, but will address issues such as customer-friendliness. The onus of communicating the look and feel of the future of cable television in India will rest on the cable trade.”
    Initially, Hathway will provide encryption on a basic system using sophisticated computer software and hardware systems provided by its partners.
    “Hathway systems will be scalable and will be geared for any future upgradations. Most importantly, the system will provide security against the undesirable malice of hacking. The subscriber management systems (SMS) have to be robust because customer satisfaction will depend on it as SMS will drive billing systems and, what we call, `provisioning correct service’. Most of the cable operators will strive to ensure that invaluable customer related information (such as billing related information and `requests’ aren’t lost due to disruptions or crashing of the systems,” Bhatia explained.
    “Hathway has one million subscribers in Mumbai who are serviced through 13 control rooms. Since most of the cable operators affiliated to Hathway have “robust systems,they wouldn’t have to invest much in the infrastructure to deliver the digital feed,”” Bhatia pointed out.
    “We have been offering 24-hour Internet services on our cable networks and that is a testimony to our state of readiness. Of course, we shall ensure strict compliance and do periodic checks to deliver quality services. We feel that the reception of FTA channels will improve post-CAS,” Bhatia said.
    So, would CAS change the face of Indian cable television? Partly yes, as Bhatia felt that CAS will ensure that the Indian cable industry structure becomes more transparent.
    This will be some relief because there hasn’t been a single new entrant in the cable business in the last few years.

    Also read:

    Hathway ready to meet CAS deadline; invests Rs 120-150m per city

    Cable industry would do the trick: Hathway’s Neeraj Bhatia