ITV

Tag: Subscription

  • Q3-2016: Ortel Communications’ YoY revenue up 22%

    Q3-2016: Ortel Communications’ YoY revenue up 22%

    BENGALURU: The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited (Ortel) reported YoY revenue (Total Income from Operations or TIO) of 21.8 per cent at Rs 48.03 crore in the current quarter (quarter ended 31 December, 2015, Q3-15) as compared to Rs 39.44 crore and 4.9 per cent QoQ growth as compared to Rs 45.79 crore.

     

    The company reported PAT in Q3-2016 at Rs 3.89 crore (8.1 per cent margin) as compared to a loss of Rs 0.1 crore in Q3-2015 and 37.5 per cent higher QoQ PAT as compared to Rs 2.83 crore (6.2 per cent margin).

     

    Ortel provides services in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Madhya Pradesh and West Bengal.

     

    Notes: 100,00,000 = 100 lakh = 10 million = 1 crore

    The numbers mentioned in this report are standalone.

     

    The company’s cable segment reported 17.3 per cent YoY growth in revenue at Rs 31.99 crore in the current quarter as compared to Rs 27.27 crore and 3.4 per cent QoQ growth as compared to Rs 30.93 crore. This segment reported 46.6 per cent YoY growth in operating profit of Rs 13.61 crore in Q3-2016 as compared to Rs 9.28 crore and 4.1 per cent QoQ growth as compared to Rs 13.08 crore.

     

    Ortel’s broadband segment reported 16.3 per cent higher revenue at Rs 8.28 crore as compared to Rs 7.12 crore in the corresponding year ago quarter and 1.7 per cent more than the Rs 8.14 crore in Q2-2016. The broadband segment reported an operating profit of Rs 4.78 crore in the current quarter as compared to Rs 4.52 crore in Q3-2015 and 9.1 per cent higher than the Rs 438 crore in Q2-2016.

     

    Ortel president and CEO Rath said, “I am delighted to share that our key strategy of LCO buyout is receiving huge response in our markets. Healthy addition to RGUs has led to strong growth of 38 per cent in bottom-line on a Q-o-Q basis. Given the strong pipeline of RGUs yet to be integrated, we are confident of improving upon this solid performance in the coming quarters.”

     

    “Broadband business continues to do well and remains a key focus area for us. We are working towards delivering notable growth in subscriber base, which would further augment our performance and overall profitability,” he added.

     

    “FY2016 will be one-of-the-best-years in the history of Ortel Communications backed by record RGU additions and solid visibility for LCO buyouts in the coming year. With more than 90 per cent subscribers on ‘last mile,’ we remain committed to this model and strongly believe it will create tremendous value for all stakeholders going forward,” Rath said.

     

    Ortel’s YoY revenue generating units (RGU) grew 19 per cent to 626,475 as compared to 526,551 and increased 9.6 per cent QoQ as compared to 571,834 in Q2-2016.

     

    Cable TV RGUs increased 19.3 per cent YoY in Q3-2016 to 558,766 as compared to 468,274 and increased 10 per cent as compared to 508,171 in Q2-2016.

     

    Ortel’s YoY primary digital cable RGUs grew 33.9 per cent to 127,098 in Q3-2016 as compared to 94,926 and grew 8.3 per cent QoQ to 117,401. The company says that its Cable TV penetration stood at 23.7 per cent and penetration in the current quarter.

     

    Broadband customers in the current quarter grew 16.2 per cent YoY to 67,709 as compared to 58,277 and grew 6.4 per cent QoQ as compared to 63,663.

     

    Ortel reported a slight drop in digital and analogue cable ARPUs in the current quarter. Digital cable ARPU in Q3-2016 was Rs 181; in Q3-2015 it was Rs 186 and Q2-2016 it was Rs 183. Analogue cable ARPU in Q3-2016 was Rs 141, in Q3-2015 it was Rs 147 and in Q2-2016 it was Rs 143. Broadband ARPU in Q3-2016 was higher at Rs 396, while in Q3-2015 it was Rs 394 and in Q2-2016 it was Rs 395.

     

    Cable Subscription, Connection and Channel carriage fees

     

    The company’s cable subscription fees in Q3-2016 increased 6.5 per cent to Rs 21.2 crore as compared to Rs 19.9 crore and was 3.2 per cent more than the Rs 20.6 crore in Q2-2016. Connection fees increased 32.7 per cent to Rs 1 crore as compared to Rs 0.70 crore and increased 33.8 per cent as compared to Rs 0.7. Channel carriage fees in the current quarter increased 48.3 per cent to Rs 9.8 crore as compared to Rs 6.6 crore in Q3-2015 and increased 1.4 per cent as compared to Rs 9.7 crore in Q2-2016.

     

    Let us look at the other numbers reported by Ortel:

     

    Total Expenditure in Q3-2016 increased 16.2 per cent YoY Rs 39.78 crore (82.8 per cent of TIO) as compared to Rs 34.24 crore (86.8 per cent of TIO) and was 2.8 per cent more than Rs 38.72 crore (84.6 per cent of TIO) in Q2-2016.

     

    The company’s programming cost in the current quarter increased 9.7 per cent to Rs 9.1 crore as compared to Rs 8.3 crore in Q3-2015, but declined 3.3 per cent as compared to Rs 9.44 crore in Q2-2016.

     

    Bandwidth cost in Q3-2016 increased 25.4 per cent to Rs 2.1 crore as compared to Rs 1.7 crore and increased 9.1 per cent as compared to Rs 1.92 in Q2-2016.

     

    Employee Benefits Expense in the current quarter increased 31.6 per cent to Rs 5.7 crore as compared to Rs 4.3 crore in Q3-2015 and increased 0.6 per cent as compared to Rs 5.64 crore e in Q2-2016.

     

    Lower interest costs

     

    SREI Equipment Finance Limited, the largest lender of the company, extended a prompt payment rebate (PPR) of one per cent on the company’s borrowings with effect from 1 October, 2015. This is in addition to the earlier rebate of 0.75 per cent, which would bring down the effective interest rate to 14.25 per cent.

  • Sony LIV launches movie subscription service at Rs 149 per month

    Sony LIV launches movie subscription service at Rs 149 per month

    MUMBAI: Along with having original digital content, catch-up content, sports and music, Multi Screen Media’s (MSM) over the top (OTT) platform Sony LIV has now expanded its offerings portfolio with the launch of a movie subscription service.

     

    The monthly subscription service pack has been priced at Rs 149, whereas the daily subscription package has been priced at Rs 9. 

     

    Taking advantage of the fact that India is among the countries with the fastest smartphone growth in Asia, Sony LIV is seeking to bolster its foothold in the online video space. 

     

    While globally, SVOD (subscription based video on demand) is poised to become the largest revenue source in 2020, overtaking OTT advertising, in India the market is at a nascent stage with a huge growth potential in the future. With mobile video traffic in India expected to be on a growth trajectory over the next three years, Sony LIV’s new initiative will let consumers stream movies at a nominal price.

     

    Sony LIV’s movie subscription service will be accessible to consumers through its website www.sonyliv.com or via the Sony LIV app available on Google Playstore (for Android users) and App Store for (iOS users).

     

    MSM executive vice president head – digital business Uday Sodhi said, “The movie subscription service is a convenient and affordable way for film lovers to enjoy their favorite blockbuster hits on their preferred digital devices. We have a wide assortment of cinematic treats on offer that users can access in a single click. The different subscription models ensure that they pay as per their consumption levels. The move is targeted towards making the digital platform the only destination that consumers need to turn to in order to fulfil the entire spectrum of their entertainment needs.” 

     

    With a range of movies from across genres, users can pay for the subscription through multiple e-payment options such as credit card, debit card, Internet banking and direct billing services. Within the subscription period, members can watch unlimited movies.

     

    The OTT platform is currently building on its catalogue with an aim to have a diverse range of movies for consumers. The platform is working towards delivering a comprehensive movie catalogue. “We are starting with building our Hindi movie catalogue and will later expand to English and other language movies too. The idea is to offer a range of movies for the consumers to consume in that subscription period. We are aiming to offer at least 1000 movies to our consumers,” Sodhi tells Indiantelevision.com.
     

    Talking about the voyage of the OTT platform since its inception, Sodhi informs that the main idea behind Sony LIV is to make it a complete entertainment destination. The OTT platform recently added sports to its content portfolio and is currently offering the Pro Wrestling League to its subscribers.

  • Videocon d2h eyes 35-40% EBITDA growth at Rs 8.6 billion in FY-2016

    Videocon d2h eyes 35-40% EBITDA growth at Rs 8.6 billion in FY-2016

    MUMBAI: Driven by strong subscriber growth momentum and improving average revenue per user (ARPU), Indian direct-to-home (DTH) company Videocon d2h is expecting EBITDA to be in the range of Rs 8.2 – 8.6 billion in FY-2016, which translates to approximately 35-40 per cent growth over EBITDA in the fiscal year ended 31 March, 2015.

     

    As was earlier reported by Indiantelevision.com, Videocon d2h is also planning to increase its monthly subscription rates in the range of Rs 12 – 23 per month.

     

    The company maintains its current first half of the fiscal year ending 31 March, 2016 guidance of 25-30 per cent period on period growth of EBITDA, and is guiding towards 40-45 per cent period on period growth in the second half of the fiscal year ending 31 March, 2016.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We are pleased to provide strong EBITDA growth guidance for fiscal year 2016. This is driven by strong subscriber growth momentum, improving ARPU and further benefit of operating leverage. We remain excited about our long term subscriber growth prospects as a result of the government mandated move to digitalisation. We have positioned ourselves to take advantage of the 100 million subscriber homes opportunity for the industry over the next four to five years.”

  • With broadcaster backing, MSOs eye voluntary digitisation

    With broadcaster backing, MSOs eye voluntary digitisation

    MUMBAI: When the industry was moving in full force towards digitising phase III and phase IV cities, the Information and Broadcasting Ministry announced the postponement of digitisation till 2016. The news may have elated a few, but multi system operators (MSOs) and broadcasters have been critising the move. 

     

    “It is the MSOs who have to invest in digitisation,” says Siti Cable CEO VD Wadhwa and president of the newly formed All India Digital Cable Federation (AIDFC). In such a scenario, Wadhwa has suggested voluntary digitisation in these phases.

    The MSOs have a feeling that with delayed digitisation, the local cable operator (LCO) will not pay them the incremental money, since digitisation is not taking place.
     

    With delayed digitisation, broadcasters who were looking for a hike in their subscription revenue from the phase III and phase IV markets will also have to put a break to their dreams. 

    The MSO too is at loss. Currently, an MSO invests close to Rs 1500 per set top box and additional money on connectivity. “With this delay, the MSOs are not going to get any return on their investments for the next 15 months.  So whether I pay today or after 15 months, my interest cost will keep getting high, since I will be borrowing money and then investing,” informs Wadhwa.

    To tackle this situation, Wadhwa suggests that since the industry has to in any case move to digitisation in the next two years, they can start with voluntary digitisation.  “Broadcasters will have to back the MSOs to achieve this,” he says adding that Siti Cable is ready for voluntary digitisation, provided that broadcasters do not charge the MSO for the next 15 months.

    “Since the MSO is bringing in the money, the broadcasters should agree to not charge for next 15 months,” he says.

    Wadhwa also suggests that voluntary digitisation can be smooth provided the LCOs increase the cable bill in phase III and IV markets by Rs 50-Rs 60. “LCOs have till today been charging only Rs 150-Rs 180 from the consumer for some 60 channels. I would suggest that since with digitisation the number of channels will go up to 200-250, the LCOs should increase the bill by Rs 50-60 per subscriber.”

    Wadhwa is of the view that the LCOs can keep 50 per cent of the amount they increase in the cable bill. “With this, till digitisation is complete, while the ARPU for the MSO increases, the LCO can also get 50 per cent more on what he is currently getting,” he opines.

     

    In order to make this possible, Wadhwa will first try to bring consensus amongst MSOs and then will talk to all the broadcasters. “If the broadcasters support us, we will go ahead with voluntary digitisation.  We will also go to each state and talk to the LCOs,” he concludes. 

     

  • Tata Sky launches first ever DTH Karaoke service in the World

    Tata Sky launches first ever DTH Karaoke service in the World

    MUMBAI: In a global first, Tata Sky, the leading DTH player today announced the launch of a new video-based music service, Karaoke in partnership with Hungama.com.  This innovation, gives Tata Sky subscribers a fun way to spend time with loved ones this Valentine’s Day.

    Commenting on the launch, Mr. Vikram Mehra, Chief Commercial Officer, Tata Sky said: “The love for singing & dancing is epitomized by Bollywood movies. Be it wedding celebrations, a picnic or a night out with friends, singing our favourite Hindi songs in loud chorus adds tremendously to the fun factor of any evening. Capitalizing on this sentiment, Karaoke enables our subscribers to share a few laughs and great moments with family & friends without the need for an occasion. Simply, tune into the service any time of the day for non-stop entertainment.”   

    Unlike other traditional Karaoke services, Tata Sky’s Karaoke service showcases music videos along with lyrics which enhance the overall singing experience.  A distinctive feature of the service is the ‘Sur Meter’ that rates an individual’s singing performance and provides for interesting competition opportunities. The song library will be refreshed on a monthly basis to keep boredom at bay.

    Neeraj Roy, Managing Director, CEO of Hungama.com also emphasized that, “Hungama’s relationship with Tata Sky has been deep rooted with the vision of providing entertainment to their consumers.

     
    Music is a derivative of films that generates mass appeal and now we are presenting a new innovation to the consumer giving them the ability to watch and sing music with Actve Karaoke. A first in the industry this should prove to be a game changer of how the masses will enjoy music.”

    Karaoke systems available in the market are very expensive. At just Rs 1990 for a mike & annual subscription, the Tata Sky Karaoke service is affordable and definitely worth the investment.  The service will be   available   from 20th February 2014 and can be enjoyed by subscribers with the Tata Sky+ HD box.

     Salient features

    •    A Karaoke mic along with 12 month subscription will cost Rs.1990

    •    On-going annual subscription will cost only Rs. 600/-. One album will always be available free for subscribers to sample the service

    •    Albums available on the service include popular songs of Salman Khan, romantic hits, party hits and a range of foot tapping nos. from Sonu, Shreya & others

     

  • BoxTV integrates mobile payments; introduces new subscription packs

    BoxTV integrates mobile payments; introduces new subscription packs

    NEW DELHI: BoxTV, Times Internet’s on-demand video service, has recently integrated mobile payments on its platform and introduced multiple subscription packs offering a range of plans from a super small three-day plan (weekend pack), seven day plan (week pack), 15 day pack (fortnight pack) all the way up to an yearly pack.

    Data on viewership patterns indicates that a lot of online content consumption happens on weekends and BoxTV’s weekend pack makes it easy for people to watch premium content without paying for an entire month. The mobile subscription plans also enable people without credit cards to buy a subscription plan easily on BoxTV.

     

    BoxTV has integrated a seamless process for mobile payment for smaller duration packs of three, seven and 15 days, which allows users to pay directly from their mobile phones. The prices range from Rs 49 (for a three day pack) to Rs 99 (seven day pack) and Rs 150 (15 day pack). All a customer needs to do is to select the plan and input his or her mobile numbers on the BoxTV website. The user receives a one-time password which once submitted, activates the plan for the given duration. The process does not require any credit information to watch the premium content available on BoxTV at any time. The payment will be charged to the customer’s mobile bill or deducted from his balance.

    For the long-term users, there are multiple plans available which range from Rs 199 for a monthly plan to a yearly plan priced at Rs 1499. For these plans, users will need to subscribe using their credit cards on BoxTV. This provides a lot more flexibility to select a plan which best caters to their individual requirements.

    “The BoxTV team is constantly working towards increasing customer satisfaction and improving overall experience, be it by introducing newer features on an ongoing basis or provides product flexibility by incorporating flexible price packs. Since inception, we received several requests from our users to provide multiple plans and payment options and that is exactly what we have introduced. With the introduction of new subscription packs BoxTV service will cater to all segments of users looking for suitable service, which provides flexibility in terms of payment and a seamless movie watching experience. The mobile payments will allow users without credit cards to watch premium content on BoxTV thereby increasing our overall user-base,” said BoxTV business head Pandurang Nayak.

  • BSNL continues to top the list of ISPs in country with share of over 60%

    BSNL continues to top the list of ISPs in country with share of over 60%

    NEW DELHI: The Bharat Sanchar Nigam Limited (BSNL) continues to top the list of broadband service providers in the country with a market share of 60.74 per cent in the first quarter of 2013.

    The state-run BSNL has 13.12 million internet subscribers at the end of March 2013, according to the report for the first quarter by the Telecom Regulatory Authority of India (TRAI).

    Reliance Communications is the second highest provider with 2.49 million internet users followed by MTNL with 1.96 million.

    TRAI says the total number of internet subscribers including internet access by wireless phone subscribers at the end of March 2013 was 164.81 million. This telecom statistics does not include internet accessed by mobile phones

    There were 21.61 million internet subscribers excluding those subscribers accessing internet through wireless phone at the end of March 2013 as compared to 21.57 million at the end of December 2012, registering a quarterly growth of 0.16 per cent.

    In the internet subscription (excluding internet access through wireless phone), the share of broadband is 69.65 per cent and share of narrowband subscription is 30.35 per cent at the end of March 2013.

    TRAI says the number of broadband subscribers increased from 14.98 million at the end of December 2012 to 15.05 million at the end of March 2013, registering a quarterly growth of 0.45 percent and year-on-year growth of 8.98 percent.

    The number of narrowband subscribers decreased from 6.59 million to 6.56 million.

  • Raj TV: commendable FY 2013 results; in investment mode

    Raj TV: commendable FY 2013 results; in investment mode

    MUMBAI: Higher ad rates and subscription revenues helped give a leg up to southern broadcaster Raj Television Network in FY 2013 ended 31 March 2013, even though its performance in Q4 2013 was relatively disappointing. Net profit for FY 2013 rose marginally to Rs 9.28 crore as against Rs 9.21 crore. However, net profit in Q4 2013 took a nosedive to Rs 53.28 lakh as against Rs 4.65 crore in the previous corresponding year’s quarter.

    Let us look at the Q4-2013 financials as against Q4-2012

    Revenue for Q4-2013 at Rs 17.47 crore, has risen 9.7 per cent as against Rs 15.92 crore in Q4-2012. Expenses have however increased significantly by 42 cent to Rs 15.22 crore in Q4-2013 as against Rs 10.73 crore in Q4-2012. Finance costs have more than doubled from Rs 66.66 lakh in Q4-2012 to Rs 1.51 crore in Q4 2013. The company says this happened on account of its launching new regional language channels, the fruits of which will accrue to its balance-sheet in the coming year.

    As mentioned above the net profit for Q4-2013 is down to a dismal figure of Rs 53.28 lacs as against a strong Rs 4.65 crore reported in the corresponding last quarter.

    Let us look at the FY-2013 results as against FY-2012

    Annual revenues at Rs 67.53 crore for FY-2013 have significantly climbed up by over 24 per cent as against Rs 54.06 crore in FY-2012. Advertisement and subscription and DTH revenues too are up 13 per cent and by 32.5 per cent respectively.

    Expenses have surged 26 plus per cent to Rs 54.74 crore in FY-2013 as against Rs 43.01 crores in FY-2012. The sharp rise is accounted for a spike in the cost of revenues to Rs 28.3 crore as against Rs 18.23 crore in FY-2012. The company says its production costs skyrocketed because its shifted its telecasts from Insat to a Asiasat 5. This resulted in its overall satellite rent bumping up to Rs 4.3 crore in FY 2013.

    PAT in FY-2013 as mentioned above stand at Rs 9.28 crore as against Rs 9.21 crore in FY-2012. For the full year, its foray into new regional channels, saw its financial costs ballooning by Rs 2 crore which dented its bottomline.

    The board has recommended a final dividend of Rs 1 per share on the face value of Rs 10 per share. Investors obviously seem bullish on the stock, despite its relatively poor Q4 performance. The Raj TV stock closed at an all time high of Rs 301.85 on 28 May.

  • 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.”