ITV

Tag: Sony Entertainment TV India

  • MPA predicts robust growth for Star, Sony, Zee

    MPA predicts robust growth for Star, Sony, Zee

    MUMBAI: Revenue growth for the Big Three of Indian broadcasting — Star India, Sony Entertainment TV India and Zee Telefilms — are likely to remain robust over the next year. These are the findings put out in a new study by research and publishing firm Media Partners Asia (MPA).

    According to the Hong Kong-based company, in terms of revenue, Star India will continue to remain the key driver for News Corp’s Star Group. MPA forecasts indicate that the Star Group’s EBITDA could reach $109 million for its FY 2005 (year ending June 30 2005) period with turnover growing 16 per cent year on year to $475 million.

    As far as Star India is concerned the dominant programming property for the coming year is the second and final season of Kaun Banega Crorepati, which launches 5 August on Star Plus. A few other shows are also expected to launch during the next few months with which Star hopes to extend its lead in the market.

    The MPA report quotes market estimates as indicating that KBC2 could realise at least $55 million in advertising revenue over its 85-week run with profit margins running over 65 per cent. The MPA numbers tie in well to the figures thrown up in an exclusive report filed by Indiantelevision.com last month that had pegged total ad sales revenue expected to be generated solely from KBC2 at Rs 2,550 million with actual profits standing somewhere around Rs 1,700 million. (Rs 2,550 million is equivalent to $ 56.7 million at a $ 1 = Rs 45 exchange rate).

    Star has also won government approval for its 20 per cent directly held DTH JV with the Tatas in India. The JV requires a total investment of $370 million, which includes the funding of STB subsidies and operating losses.

    Star’s principal rivals in the market – Zee and Sony – are also expected to grow significantly. Zee’s 20 per cent-owned Dish TV (one million subscribers target by March 2006) will be facing stiff competition from the Star JV but the company expects its recent rebound in advertising and improvement in ratings to continue and boost earnings through its FY 2005 period (year ending March 2006) with turnover potentially growing by 14 per cent to $366 million and EBITDA also up 14 per cent to $115 million, a 31 per cent margin.

    For the same period, turnover for Sony Entertainment Television (SET) India is expected to grow by 25 per cent year on year to $245 million (fuelled by advertising growth and solid distribution gains) while EBITDA could reach $74 million (12 per cent year on year growth), a 30 per cent margin.

     

  • Trai interconnect order expected today; must provide to stay

    Trai interconnect order expected today; must provide to stay

    NEW DELHI: The private broadcasters’ worst fears are about to come true. The broadcast and cable regulator is likely to issue its final interconnect regulations order today. And on the vexed issue relating to making available content to all platforms on a mandatory basis, there will be no concessions to broadcasters opposing this move.

    The must provide clause, as laid out in the draft interconnect regulation issued earlier, will stay as it, TRAI chairman Pradip Baijal, speaking this morning at a broadband seminar in the capital, has said.

    The must-provide clause or making available channels on a non-discriminatory basis to all platforms has been vehemently opposed by most pay broadcasters like Sony Entertainment TV India, Discovery and Star India. There has even been talk of somebody moving court if Trai insists on the clause as being described in the draft circulated by the Authority. The broadcast industrys understanding is that such a clause leaves no scope for marketing exclusive content.

    For example, Sony Entertainment TV India, in its representation made earlier on must-provide, had conveyed to Trai that it would, in effect, be tantamount to copyright infringement if creativity is regulated and denying traditional rights of broadcasters.

    Likening its position to a content providers, Trai sources had told indiantelevision.com that Sony, in its response, has stated that the draft interconnect regulation does nothing to address the last mile problem and also refers to the lack of any regulation to effect the must carry clause. The argument being must-provide would decrease competition.

    Why so? According to Sony, content is the main legal differentiator for this business and thats why it has not agreed to be carried by Dish TV, 20 per cent owned by Zee Telefilms, owing to the latters inability to give satisfactory answers to issues like piracy and other commercial concerns.

    Sony has also quoted extensively from global norms like Trade Related Aspects of Intellectual Property Rights (TRIPS) and the Berne Convention for the Protection of Literary and Artistic Works (the Berne Convention), treaties ratified by India, in support of its claims as to why must-provide should not be enforced.

    Well, the regulator has heard out all the divergent viewpoints being expressed and has made its decision. Must provide will stay.

    Await a detailed report that follows.

  • Trai unlikely to give final interconnect regulations this week

    Trai unlikely to give final interconnect regulations this week

    NEW DELHI: Broadcast and cable regulator is unlikely to come out with the final interconnect regulations this week as had been envisaged, even as it grapples with diverse feedback on the issue, especially those relating to making available content to all platforms on a mandatory basis.

    According to a source in Telecom Regulatory Authority of India (Trai), the interconnect regulations are likely to be finalised by next week only, indicating that the divergent views on must-provide has become a ticklish issue for the regulator.

    That a storm of a sort is brewing in the Trai cup in the form of must-provide clause or making available channels on a non-discriminatory basis to all platforms cannot be ruled out as most pay broadcasters like Sony Entertainment TV India, Discovery and Star India coming out openly against such a regulation.

    Though in private, a Trai member said the attempt would be to balance out the concerns of the broadcasters in the final mandate, but it may prove to be a Herculean task.

    A broadcast industry source said that the possibility of somebody moving court cannot be ruled out if Trai insists on the must-provide clause as being described in the draft circulated by the Authority. The broadcast industrys understanding is that it leaves no scope for marketing exclusive content.

    For example, Sony Entertainment TV India, in its representation on must-provide, has conveyed to Trai that it would, in effect, be tantamount to copyright infringement if creativity is regulated and denying traditional rights of broadcasters.

    The regulation instead should focus on preventing creation of vertically integrated media companies directly. Vertically integrated media companies should offer capacity on their platforms to their competitors at fair and competitive prices, as is the international precedent. Otherwise, a platform owner that also owns channels should offer such channels to competing platforms on terms and conditions no worse than what it has agreed for its own platform, Sony is understood to have told Trai.

    Likening its position to a content providers, Trai sources said Sony, in its response, has stated that the draft interconnect regulation does nothing to address the last mile problem and also refers to the lack of any regulation to effect the must carry clause. The argument being must-provide would decrease competition.

    Why so? According to Sony, content is the main legal differentiator for this business and thats why it has not agreed to be carried by Dish TV, 20 per cent owned by Zee Telefilms, owing to the latters inability to give satisfactory answers to issues like piracy and other commercial concerns.

    Sony has also quoted extensively from global norms like Trade Related Aspects of Intellectual Property Rights (TRIPS) and the Berne Convention for the Protection of Literary and Artistic Works (the Berne Convention), treaties ratified by India, in support of its claims as to why must-provide should not be enforced.

    With such viewpoints being expressed, the regulator has to be careful as the primary aim is to benefit the viewers most, the Trai source explained, hinting at the dilemma being faced by the regulator.