ITV

Tag: Shamim Shaikh

  • ESS hikes subscription rate 33% to Rs 32

    ESS hikes subscription rate 33% to Rs 32

    MUMBAI / NEW DELHI: It can only be termed a calculated gamble. ESPN Star Sports today announced a 33 per cent hike in its monthly package rate from Rs 24 to Rs 32 per subscriber, effective 1 December.

    How the cable fraternity responds to this latest increase remains to be seen but if a big ruckus is raised over the rate increase, it could well add some momentum to I&B minister Sushma Swaraj’s attempts to push through the conditional access systems (CAS) Bill in the Rajya Sabha, Indian Parliament’s Upper House, next week.

    Surprisingly Hinduja Group cable MSO IN CableNet took the increased rates as a matter of course. COO Rajiv Vyas said: “The increase does not impact us. We’ve got a two-year revenue outflow contract in place which was signed in March and is valid till 2004. Our payments to ESS are based on this agreement. These are the kind of deals we’ve entered into in most places.”

    It needs noting that IN CableNet has an exit clause in the event of CAS coming in. Vyas said: “As far as CAS is concerned there are exit clauses in place since the revenue dynamics would change in such a scenario.”

    When contacted, Shamim Shaikh, one of the promoters of the 7 Star Cable Networks MSO that is dominant in the Andheri-Juhu area of west Mumbai, stated that he had yet to receive an official notification from ESS on the matter. He was however, quite categorical that he would be passing on the increase to the subscribers.

    ESPN Software managing director Manu Sawhney was quoted in an official release as saying: “We are committed to providing top quality sports content to viewers on our networks. The ever increasing cost of creating and acquiring compelling content and the issue of under declaration, which mars our industry compels us to revise our prices on a periodic basis.”

    The price hike seems to be timed just ahead of the upcoming cricket series where India tours New Zealand in December, for which ESS has exclusive telecast rights. However, two things may go against ESS as far as a negotiating ploy is concerned. One is that New Zealand is not a side that gets the adrenaline flowing among the Indian public to the extent that an England or Australia might and secondly the match timings are not favourable. Matches that start at 4 am in the morning are the worst possible as far as viewing choices are concerned.

    How the trade responds to this hike will be closely watched by the likes of Star and Sony Entertainment which are expected to make their own announcements as to whether the new year will see them increasing rates or maintaining status quo as the cable industry has been demanding pending the CAS legislation.

    It is learnt from industry sources that Star India is also likely to make an announcement within the next two weeks regarding subscription rates for its bouquet of channels. However, it is not known at present whether Star will announce an increase in its bouquet price from Rs 40 per month per subscriber or go in for a freeze of subscription rates.

  • “CAS is the only solution to resolve the subscription problems that cable TV ops and broadcasters are facing”

    “CAS is the only solution to resolve the subscription problems that cable TV ops and broadcasters are facing”

    Shamim Shaikh is managing director and spokesperson of one of the most proactive cable TV network coalitions in India – the Seven Star Cable Network which controls around 20 per cent of Mumbai’s cable TV viewing populace. Seven Star – an agglomeration of nine once-independent cable TV systems – was the first Indian CATV networks to install an addressable system in subscribers’ homes way back in 1999.

    The network relays more than 90 channels – five of which are premium channels not visible on most other systems nationally and delivered to a select well-heeled subscriber base. 7-Star is also among the few Indian CATV systems delivering Internet access via cable successfully. The wailing of broadcasters despite, Shaikh is among those cable TV operators in country who have welcomed the move towards CAS. Indiantelevision.com spoke to Shaikh to get a handle on the professional Indian cable TV operators perspective on CAS. Excerpts from a monologuish interview. Read on for some Shaikhspeak:

    It was a long awaited decision regarding the Conditional Access System (CAS) from the government. We wholeheartedly welcome it. This is one decision that will be beneficial to all – broadcasters, cable operators as well as viewers. Broadcasters have been complaining about the subscriber underdeclaration problem and low revenue collection from cable TV operators – we believe that this issue can only be resolved through the implementation of the CAS. And we also believe that it is the only way to stop the arm-twisting tactics of broadcasters.
    In my opinion the government should make CAS mandatory otherwise sheer inertia will not allow it to progress. It is only the government, which can make it happen. Also, a body is needed to regulate the market as well as to avoid fights between channels and operators.

    Some people are misleading the media about the stand of the cable operator. They have painted such a picture that operators are against the CAS as they don’t want transparency which is not at all the case. They have tarnished our image and our business. They call us chor (thief).

    But I tell you that we at 7-Star started CAS in our network three years ago. We have already supplied three thousand set-top boxes. But at that time no broadcaster supported us. If they wanted transparency why they did not support us in the first place.

    Who says that cable TV operators cannot afford technology upgradation and costs which are involved in the migration towards CAS? From what I know the good cable TV operators – and there are many of these in India – will not have to upgrade the technology as far as CAS goes. We may have to invest in modulators, IRDs and we can definitely afford the cost.

    My estimate is that the cost per channel will be Rs 50,000 maximum. Any cable operator will not go for all the channels. Taking close to 15 to 20 most sought out channels in that respective area, the maximum investment will be maximum Rs 1,000,000. And for the Set Top box I have got a quotation from a manufacturer for pricing of close to Rs 3000 per box. We will also do long term deals with box makers, committing to buy a certain number of boxes over a time. This will give us tremendous economic benefits – both to us and to consumers.

    “Some people are misleading the media about the stand of Cable operator. They have painted such a picture that operators are against the CAS as they don’t want transparency which is not at all the case. They have tarnished our image and our business. They call us chor (thief).

    Will all cable TV operators invest in CAS? I cannot tell you. It will have to be a business decision that each of the takes in their individual capacities. When channels started getting encrypted, we had to invest. When we went from 150 MHz to 550 and to 750 MHz was there any hesitancy on our side to invest? No. We all pumped in money into our networks to be able to deliver the quality of services that consumers were demanding along with a large quantity of channels.

    Let every cable operator understand this: cable TV is a business like any other: to earn money one has to invest money.

    In the case of CAS, cable TV operators should think the same way. If the government is keen on CAS, then I am quite definite and sure that it will become a reality.

    Until it happens, it gives us time to prepare. It is better if we keep ourselves ready for it. The investment can also be in a phased manner as not all viewers in each network will take up the boxes at the same time. We at 7-Star are going to first buy some boxes, distribute them. We aim to get part payment for the same. Once that comes in we will invest in getting more boxes and distributing them to newer subscribers.

    Remember in all this transition towards addressability you will always have the basic package for which no boxes will be needed. So we will always have income which will not have to be shared with pay TV and encrypted channels.

    Small operators will have to find their place in all this chaos and churn in the marketplace. It is essential that they draw up a survival strategy. In metros the small ops will continue assisting main operators and will get their share.

    As far as the interiors and smaller towns go, it is quite likely that conditional access will spark off another wave of mergers and alliances amongst operators in these areas. They would be wise to set up their own common shared headends. Even in our case nine of us came together and started this head end. So this fear that smaller operators will be wiped out is quite baseless.

    Even in the metros some operators are under the impression that CAS will harm them, but in my opinion, if they plan their strategy right they will not be finished. They will face some problems initially but once CAS happens it will be a win-win situation for all: broadcasters will have no underdeclaration, we will not be armtwisted by them for more pay revenue before crucial events and the viewers will not have to pay for channels they don’t want to watch, they will be able to watch only what they want and choose out of what they don’t. Even cable TV operators will have legal support to fight broadcasters in a court of law.

    CAS is quite like the chicken and egg situation. What should come first: CAS and uggradation or the set top boxes? Neither of these will. In my opinion the government should make CAS mandatory otherwise sheer inertia will not allow it to progress. It is only the government, which can make it happen. There are various examples like CNCG being made compulsory for vehicles, which was initially opposed, but happened over a period of time, after it was made mandatory.

    Once CAS happens it will be a win-win situation for all: broadcasters will have no underdeclaration, we will not be armtwisted by them for more pay revenue before crucial events and the viewers will not have to pay for channels they don’t want to watch. Cable TV operators will have legal support to fight broadcasters in a court of law.

    The government has a very important role in the progress of CAS: a body is needed to regulate the market as well as to avoid fights between channels and operators.

    Cable TV viewing will not fall because of the free basic tier making it possible for even lower classes to buy the service. But overall there will be increase in total outgo per month per household. Viewers will have difficulty in buying set top boxes but we can work out a marketing strategy with some kind of subsidy, offering installment pay back facility, and giving free sampling of the channels at no cost.

    Broadcasters on their part will have take a call on whether they should go for greater reach and higher ad revenues or higher subscription revenues and comparatively low ad revenue and reach if they go pay.

  • 7 Star sees red; claims absolute triumph in battle with ESPN-Star Sports

    7 Star sees red; claims absolute triumph in battle with ESPN-Star Sports

    7 Star Cable, respondent in the court case filed by ESPN Star, has taken umbrage against media reports (see ESPN-Star Sports vs 7 Star: Both claim victories) that have refused to accord it absolute victory in the matter.

    According to Shamim Shaikh, a partner in the cable TV independent that operates in Mumbai’s northern suburbs, the broadcaster has not reaped any benefit from the high court decree. The court, in its order asked the cable op to pay its outstanding dues to ESPN Software and allowed the broadcaster to cut off connections to hotels where its channels were being beamed through 7 Star.

    Shaikh insists that 7 Star had never refused to pay the broadcaster its dues. In fact, he says that his company had made a payment by cheque much earlier to ESPN Star’s Mumbai distribution head, which had been accepted. It was however returned by ESPN Star Sports later. “So, why is it claiming that it has won on this front?” he asks.

    He adds that the court allowed it to furnish a bank guarantee for the amount that would have been payable had the contract been in force for the period from 22 August 2001 to 30 November 2001.

    An acerbic Shaikh contends that all broadcasters’ distribution agreements with cable ops are ‘one-sided’ and loaded in the formers’ favour. The agreements usually include clauses that the rates can be changed arbitrarily, says Shaikh, and that cable ops often are not given a copy of the agreement.

    He alleges that broadcasters often pick on cable ops only when there’s an interesting telecast round the corner. “Didn’t they know earlier that we had been showing their channels in hotels all this while?” he fumes.

    Shaikh is also bitter about the claim of 100,000 subscribers put out by ESPN. Alleging that the broadcaster was making contradictory statements, he says that if they believed the subscriber base was so broad, why have they asked for disclosure of only 20,000 subscribers.

    “Let them prove our subscriber base and then extract the exact dues from us,” he says. “Last year, the broadcaster reduced our subscriber base from 8,000 to 7,000. Why did that happen? This year they want to increase it to 20,000? Why can’t they be consistent?” he queries.

  • Star announces new rates, bouquet costs Rs 30

    Star announces new rates, bouquet costs Rs 30

    MUMBAI: The Star Network on Tuesday announced its new subscription package of RS 30 per month.

     

    A company release said the hike worked out to an increase of RS 6 per subscriber.

     

    Justifying the release, Star India CEO Peter Mukerjea said: “We would like to hold on to our subscription rates, but because of the underdeclaration of subscribers by the trade we had no option but to increase the prices. We get paid for only a small fraction of the homes that receive cable and satellite channels.”

     

    Yash Khanna, head corporate communications, said that only one sixth of actual connectivity was being declared.

     

    When queried as to what sort of response he expected from the hike he said Star was bracing for a possible blackout in Calcutta where RPG had 75 per cent C&S penetration while rival Zee Telefilm’s Siti Cable had the remaining 25 per cent. As to what would be the response from other centres, he said they would have to wait and see.

     

    Earlier, when informed of the impending hike, Shamim Shaikh of Mumbai-based independent MSO Seven Star Satellite Network had said there was no question of their accepting the new package. “None of the operators will accept these new rates and except for Hathway (where Star has a 26 per cent stake) it will probably lead to a situation that Star will switch off our feeds,” Shaikh said.