ITV

Tag: Reliance Digital TV

  • DTH operators to challenge I&B Ministry’s notice on arrears

    DTH operators to challenge I&B Ministry’s notice on arrears

    NEW DELHI: Operators of private direct-to-home (DTH) platforms, who recently received a notice from the government with regard to licence fee dues amounting to Rs 2,066 crore, plan to challenge the notice on the ground that the matter is subjudice and is pending in the Supreme Court.

     

    However, the DTH Operators Association of India is yet to decide whether the challenge will be in the form of a reply to the Ministry or an application in Court.

     

    According to the notice sent earlier this week, the six private operators have been asked to pay the amount within fifteen days.

     

    However, most of the operators contacted by indiantelevision.com said they had cleared the dues of licence fee.

     

    The operators say the licence fee as demanded under the rules is on gross revenue (GR) whereas they have been asked to pay the fee on the basis of actual gross revenue (AGR). The operators have said the fee should be only on subscription revenue and not on allied earnings such as dividend and interest income.

     

    When the operators insisted that they had been paying the licence fee on the GR, the government went to the Supreme Court on the issue and the matter has been pending for the past four years and is now expected to come up early next month.

     

    However, Information and Broadcasting Ministry secretary Bimal Julka told indiantelevision.com that the Ministry was justified in sending the notices since the apex court had not levied a stay order in the matter. Asked about possible action after 15 days, he said this would be done according to the provisions of the licensing rules.

     

    Tata Sky MD & CEO Harit Nagpal said that the demand of Rs 2,066 crore is the differential between the GR and the AGR.

     

    He also said that I&B Ministry had itself asked the Finance Ministry to reduce the fee from 10 per cent to six per cent but the latter had not taken a decision on this so far.

     

    According to the notices sent to the operators, Dish TV has to pay Rs 625 crore while Tata Sky has been told to pay Rs 620 crore. Airtel Digital TV has to pay Rs 298 crore, while Sun Direct has to clear Rs 230 crore. The Videocon-owned d2h has to pay Rs 157 crore while Reliance Digital TV has to pay Rs 136 crore.

     

    While DTH companies provide for 10 per cent licence fee on overall revenue in their profit and loss account, they pay less (only on subscription revenue net of content cost) at about five per cent of overall revenue. The rest is booked as a provision in the balance sheet, along with applicable interest.

     

    As of 31 March 2013, Dish TV’s closing provision pertaining to regulatory dues (including interest) stood at Rs 653.66 crore.

     

    Some of the DTH operators were hopeful that the Telecom Regulatory Authority of India would bring down the licence fee from 10 per cent to six per cent, as proposed by the I&B Ministry to the Finance Ministry. TRAI itself had recommended last year that the actual gross revenue should be brought down to eight per cent.

     

    Meanwhile, the Parliament was told in April last year that the six private DTH operators paid Rs 307.8 crore as licence fee to the government for the year 2011-12, compared to Rs 177.8 crore in 2010-11 and Rs 126.2 crore in 2009-10.

     

    The revenue in 2008-09 was Rs 89.3 crore from four operators, since both Airtel Digital TV (Bharti Telemedia) as well as Videocon d2h (Bharat Business Channel) had not commenced services.

     

    The other DTH players are Dish TV, Tata Sky, Sun Direct TV, and Reliance Big TV.    

     

    Under the agreement with the government, the platforms pay a non-refundable entry fee of Rs 10 crore and an annual fee equivalent to 10 per cent of its gross revenue every financial year. Thus, the platforms have paid Rs 60 crore as one-time entry fee.

     

    According to figures furnished in the reply to the Parliament, Tata Sky paid licence fee of Rs 79.3 crore in 2011-12 as against Airtel Digital’s Rs 61.87 crore and Dish TV’s Rs 30 crore. Sun Direct paid Rs 36 crore, Reliance Big TV paid Rs 9.5 crore, and Videocon d2h paid Rs 5 crore.

     

    DTH services are governed by the DTH guidelines and terms and conditions issued by the I&B Ministry on 15 March 2001 and amended from time to time.    

     

    The seven DTH players in the country including Doordarshan’s free-to-air Freedish cover around 3.5 crore TV homes. Freedish currently has 59 slots including 22 of its own and which it hopes to increase to 97 by the end of this year and ultimately to 250 slots over the next two years.

  • MEC adds more Reliance companies to its kitty

    MEC adds more Reliance companies to its kitty

    MUMBAI: MEC India, GroupM’s media agency, has expanded its client portfolio with the inclusion of Reliance Group companies – Reliance Capital (includes Reliance General Insurance, Reliance Life Insurance, Reliance Mutual Fund and Reliance Commercial Finance), Reliance Infrastructure, Reliance Power and Reliance Energy.

     

    The agency already handles the media business for Reliance Communications, Reliance Net Connect and Reliance Digital TV.

     

    The accounts will be serviced out of MEC India’s Mumbai office.

     

    On the new addition, MEC India managing director T Gangadhar said, “The team at MEC India is eagerly looking forward to provide excellence in crafting and executing customised integrated solutions across its suite of services. MEC India has shared a long standing relationship with various companies in the Reliance Group and our objective will be to provide superior assistance with media, analytics, content, activation and digital media services, as we have been doing with the award winning RCOM mandate in the past.”

  • Big Magic strengthens distribution network, hops on board Videocon d2h

    Big Magic strengthens distribution network, hops on board Videocon d2h

    MUMBAI: Big Magic, the flagship GEC from the Reliance Broadcast Network stable amplifies its reach with the announcement of a distribution deal with Videocon d2h. After meeting with a great success in the heartland of India, it is Big Magic’s endeavor to extend its assorted entertainment offering across the Hindi Speaking markets and this alliance takes it to an additional 8mn subscriber base.

    The alliance allows Videocon d2h to offer its viewers an excellent television viewing experience, while the GEC reaches its content to a relevant audience base across relevant markets. Its programming mix which ranges from family dramas, crime shows, reality shows, cookery shows, game shows to weekend movies promise to offer a stimulating and refreshing entertainment experience. The Channel, which launched in April 2011, is in the process of strengthening its reach, offering audiences a programming offering that is backed by their very own predilections.

    Speaking on the occasion, Big Magic business head Sunil Kumaran said: “We are happy to announce our alliance with Videocon d2h, which allows Big Magic to immediately grow reach by an additional eight million subscriber base. We are confident of our product, which has been designed as per audience penchants and want to strengthen our reach. We look forward to reaching a matchless entertainment offering to maximum audiences of India.”

    Videocon d2h CEO Anil Khera added: “Big Magic has performed well since its launch. We are extremely happy to provide this channel on our platform as it promises content across various genres. We are certain that our audience will enjoy and appreciate the addition of this channel on our platform.”

    Big Magic is already available across key DTH players ranging Airtel, DD Direct, Dish TV, Reliance Digital TV along with Hathway, Incable, Digicable, DEN, 7 Star, ABS, Siticable, Star Broadband and GTPL amongst others.

  • DTH players revise subscription packages upwards

    DTH players revise subscription packages upwards

    MUMBAI: Bogged down by multiple taxation and regular hikes in taxes like service and entertainment, Indian direct-to-home (DTH) service providers have decided to pass on the burden to their customers.

    DTH operators like Dish TV, Tata Sky, Airtel digital TV and Videocon d2h are raising base pack prices. In the case of Dish TV and Videocon d2h, the uptick is to the tune of 10 per cent for all their packages.

    They say an increase is inevitable as they have been absorbing taxes for far too long and the industry viability itself is coming into question because the players have been bleeding.

    Airtel digital TV has hiked its base pack price from Rs 158 to 175 per month effective 9 April. Videocon d2h’s price hike comes into effect from 10 April. Dish TV was the first to hike prices of monthly subscription packages by 10 per cent effective 4 April.

    Tata Sky has increased prices for individual plans unlike the uniform hike by Dish TV and Videocon d2h. Some like Reliance Digital TV are still adopting a wait and watch policy.

    However, the DTH operators have also provided price protection to their customers by giving them an option to save money by recharging for a longer duration.

    Under the regulation, existing customers are protected from a price hike which can only be implemented after six months from the day it comes into effect.

    Dish TV COO Salil Kapoor says that DTH operators were absorbing the burden of service tax till now and have decided to pass it on to the customers to reduce that burden.

    “We have hiked prices by 10 per cent across the board. We are just passing the burden of service tax on to the customers,” says Kapoor.

    Tata Sky MD and CEO Harit Nagpal is of the opinion that the price hike is not just about service and entertainment tax.

    “The input costs have gone up, the cost of content has also gone up plus there is inflation. The DTH operators have been dropping prices till now so this (price hike) is just one little step in the right direction by DTH operators,” explains Nagpal.

    Videocon d2h CEO Anil Khera elucidates: “Service tax has been increased and entertainment tax in many states has also been increased so we are gradually passing the burden on to the customers.”

    A Reliance Digital TV spokesperson said that the company is evaluating hiking prices, “Yes, we are at present evaluating different options. At this stage, it is difficult to say how much would it be and when,” the spokesperson states.

    The spokesperson adds, “Also, as an industry we are heavily burdened with statutory levies (to the extent of around 35 per cent) – the recent decision to increase the Customs Duty on STBs by 5 per cent has only added to this burden.”