ITV

Tag: Videocon d2h

  • Subhash Chandra’s Living Ent. to launch 5 channels; eyes Rs 1000 crore revenue in 4 years

    Subhash Chandra’s Living Ent. to launch 5 channels; eyes Rs 1000 crore revenue in 4 years

    MUMBAI: Essel Group’s Living Entertainment is looking at launching five new channels in the Indian market.

     

    The first channel to go on air will be an international food and lifestyle channel christened Living Foodz. Hitting Indian airwaves on 11 September, 2015, this foodtainment channel will have dual feed in Hindi and English.

     

    Additionally, the group also plans to launch Zee Living in India, which is already an established channel in the US. Apart from this, channels that will be launched under the Living Entertainment’s umbrella are: Living Rootz, which will concentrate on the rich civilization of the country, Living Homez focusing on home décor and Living Travelz, which will emphasise on the traveling aspect. The launch dates of these four channels have not yet been decided. 

     

    What’s more, the Living network, which has generated revenues of Rs 80 crore from global operations, is eyeing global revenue of Rs 1000 crore in the next four years.

     

    “In the next six months, we will add Rs 30 crore from India operations, which will take our business to around Rs  110 – 115 crore. In next four years, Living network will reach the Rs 1000 crore mark,” informed Zeel and Essel Group chairman Dr Subhash Chandra.

     

    According to him, 12 – 13 per cent of the global television viewership comes from the lifestyle category, while in terms of revenue generation the percentile goes up to 18 to 20 per cent, hence offering a huge space to explore.

     

    “This is yet another endeavour from our group to bring the world closer through entertainment. Living is all about global mindsets and experiences. This is also in line with our group philosophy of ‘Vasudhaiva Kutumbakam’ – The world is my family. Our group has always believed in creating not just great content but building genres and brands that are milestones,” he added.

     

    According to Dr Chandra, the American market, where Living network’s Zee Living has already established itself, is the most closed economy. “I have no hesitation in saying that, though people say US is the father of market economy, it’s the most closed economy I have ever seen in my life. We had to tussle hard to get distribution and even today out of 110 million homes, we managed to reach only 30 million homes,” he asserted.

     

    Zeel MD & CEO Punit Goenka added, “With Living, we intend to make global content for global audiences. This will be for the first time ever  that original content from India will be available to audiences across the globe. We are very proud to present this new form of entertainment to our audiences.”

     

    Drawing light to the business aspiration of the first channel to be launched from the bouquet, Goenka said, “Living Foodz will be a profitable from year one. Given the quality and content we have, I am sure of the fact that Living Foodz will go a long way.”

     

    Living Foodz will specialise in exploring the evolving social status of food: moving out of the confines of the conventional kitchen into a world of entertainment and adventure with food. Having food at its core, Living Foodz will explore different perspectives towards food and the way it touches people – from lifestyle, travel, wellness to food infotainment and reality.

     

    “Living is our endeavour to showcase audiences with great lifestyle content. Growth of digitisation is leading to fragmentation of audiences, thereby creating an opportunity for differentiated and genre specific content. Moreover, increasing digital households are giving rise to increased audience expectations and demand for more diverse viewing opportunities. Under this scenario we are providing Living Foodz to people who love exploring and knowing more about food,” opined Zee Living – India & APAC CEO Piyush Sharma. 

     

    Sharma further informed that the network will launch an app in six months’ time as well as a website in the next two months. “The channel will have 100 per cent original content,” he added.

     

    Speaking to Indiantelevision.com, Living Foodz business head Amit Nair said, “We will have 80 per cent of Indian content, while 20 per cent will be English. The entire programming will be in-house. We have a very good in-house team who will handle that part.”

     

    In terms of marketing, the channel will emphasize more on digital platforms while there will be a 360 degree presence.

     

    For the Indian market, Living Foodz will be the international food & lifestyle channel that will have a universal feel and will appeal to new age groups in digital households. The core audience set will comprise the well travelled and connected people with high interest level of food. 

     

    The launch of Living Foodz will also mean curtains down for Zee’s Khana Khazana channel. “We are proud of the achievements and accolades Khana Khazana has garnered so far but now we believe audiences’ taste has changed and hence we decided to come up with Living Foodz. We will use Khana Khazana content and re-package it for our digital platforms, but since Living Foodz is going to have 100 per cent fresh content we cannot have its content on television,” said Sharma.

     

    The shows that Living Foodz is launching with are: Food Xpress: Rocky & Mayur, Chef on Wheels, Vickypedia, with Chef Vicky Ratnani, The Great Indian Rasoi with chef Ranveer Brar, Good Food America and Peggy’s Kitchen Cures.

     

    The channel will be available across all direct-to-home (DTH) platforms like Dish TV, Tata Sky, Airtel Digital TV and Videocon d2h as well as leading cable networks.

     

    Living Entertainment in India will be an extension of the Living network belonging to Essel Group, which already exists in international markets.

  • Videocon d2h adds two new Malayalam channels

    Videocon d2h adds two new Malayalam channels

    MUMBAI: In celebration of Onam, direct to home (DTH) operator Videocon d2h has added two new Malayalam channels, Flowers TV and People TV on its platform.

     

    The Malayalam general entertainment channel Flowers TV will be available on LCN 606, whereas Malayalam news channel People TV is available on LCN 641. With the addition of these new channels, Videocon d2h now offers 28 Malayalam channels and services.

     

    “This Onam, we are looking forward to strengthening our market share in Kerala, as we continue to expand our already-wide array of Malayalam channels and services. The addition of two new Malayalam channels will help bolster our leadership position in this market while showing Kerala consumers that we are committed to serving their entertainment needs,” said Videocon d2h executive chairman Saurabh Dhoot.

     

    Videocon d2h CEO Anil Khera added, “We are proud to demonstrate our consumer-centric approach by adding Flowers TV and People TV to our platform on such a fitting and joyous occasion. A large number of our subscribers will celebrate Onam and Kerala is a very important region for us, so we are focusing on delivering them the best.”

  • Videocon d2h expands HD offering to 39, adds two new channels

    Videocon d2h expands HD offering to 39, adds two new channels

    MUMBAI: Videocon d2h has upped its HD channel offering to 39 with the addition of two new channels namely Viacom 18’s Colors Infinity and Fox Group’s Nat Geo Wild HD.

     

    Additionally, the DTH operator has also added Colors Infinity (SD) to its portfolio of channels.

     

    Colors Infinity airs critically-acclaimed series such as Fargo, Orange Is The New Black, Better Call Saul, Forever, The Big C, The Musketeers, My Kitchen Rules and The Flash for the first time in India.

     

    On the other hand, Nat Geo Wild HD will feature wildlife related programs and factual content involving nature, science, culture, and history.

     

    Colors Infinity will be available as channel 183, Colors Infinity HD as channel 184, whereas Nat Geo Wild HD will be available as channel 462 on Videocon d2h.

     

    Subscribers can access Colors Infinity standard definition channel as a part of Diamond Pack available at Rs 385 per month for 407 channels & services. Colors Infinity HD & Nat GeoWild HD will be part of Videocon d2h’s Premium HD add-on and Platinum HD pack available at Rs 590 per month for 452 channels & services.

     

    “We believe that our ability to provide a substantial lineup of top entertainment choices in English, infotainment and HD is the key in serving the needs of India’s premium consumers. And the more such stellar options we provide, the more Videocon d2h will emerge as India’s definitive DTH choice,” said Videocon d2h executive chairman Saurabh Dhoot.

     

    Videocon d2h CEO Anil Khera added, “By adding new English entertainment channels like Colors Infinity and infotainment channel Nat Geo Wild HD, Videocon d2h is creating a television viewing experience our subscribers can’t get anywhere else. Our aim is to ensure that every Indian home is able to experience top quality entertainment that rivals the world’s most established television markets.” 

  • Q1-2016: Affirmation that DTH in India has turned the corner?

    Q1-2016: Affirmation that DTH in India has turned the corner?

    BENGALURU: If numbers reported by direct-to-home (DTH) operators in Q1-2016 are anything to go by, then the segment might just have turned the corner last quarter.

     

    As may be recalled, Indiantelevision.com had reported in the last quarter that the DTH industry in India had probably reached an inflection point in FY-2015 (financial year ended 31 March, 2015, previous year), and more so during the last quarter of the previous year (Q4-2015). The financial results for the quarter ended 30 June, 2015 (Q1-2016, current quarter) seem to confirm this fact.

     

    Another endorsement of this website’s surmise is a single statement in the Sun TV Network’s earning release for the current quarter – Subscription revenues continue to grow with cable TV revenues growing by approximately 13 per cent and DTH subscription revenue growing by nine per cent over the same quarter of last year. Sun TV had approximately eight per cent market share among the private Indian DTH players as on 31 March, 2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

     

    This report covers only the three of the seven DTH service providers in India (as had the previous one) since the other four – Reliance Digital TV, Sun Direct (about 97 lakh subscribers as on 31 March, 2015), Tata Sky and DD Free Dish are not listed on the bourses and their financial numbers are not available, unless the principals of these companies/segments chose to reveal them. The three players – Airtel DTH, Dish TV and Videocon d2h have already been covered in our earlier report mentioned above.

     

    Despite Q1 being a relatively weak quarter seasonally, two of the three players – Airtel DTH, Dish TV and Videocon d2h have reported QoQ and YoY growth across all the important parameters that include revenue, operating profits with healthy margins, subscription numbers, average revenue per user (ARPU) for the current quarter. The third player Videocon d2h, has also shown improved numbers across all the parameters mentioned above, except in the case of operating profits – the company’s YoY and QoQ loss reduced significantly in Q1-2016.

     

    Dish TV is the largest DTH player in terms of subscriber base and probably revenue too, in India. The company posted a 55.2 per cent QoQ growth in consolidated profit after tax of Rs 54.21 crore (7.2 per cent margin) in Q1-2016 on revenue of Rs 736.68 crore. For the corresponding quarter of last year, Dish TV had reported a loss of Rs 14.97 crore on revenue of Rs 618.04 crore.

     

    As a matter of fact, Dish TV is also the first among listed DTH companies in the country in FY-2015 and Q4-2015 to report a profit after tax as opposed to the operating profits reported by a segment of the other goliaths for whom DTH services is just another small segment.

     

    Airtel DTH reported the highest YoY growth in ARPU in Q1-2016, as well as the highest ARPU among the three players in this report.

     

    Let us look at some of the numbers reported by the three players:

     

    Airtel DTH

     

    For Bharati Airtel Limited (Airtel), Digital TV services (Airtel DTH) contributes just a small fraction to its overall numbers. The DTH segment’s contribution to overall Airtel numbers is approximately four per cent to revenue and three per cent to EBIDTA, and yet it had a seven per cent share in the company’s capex investments pie to the extent of Rs 211.3 crore fresh investments in Q1-2016. Overall, cumulative investment made by Airtel into its DTH segment is Rs 5621.6 crore (about three per cent of Airtel’s overall cumulative investments).

     

    Mentioning the DTH segment in Airtel’s Q1-2016 earning release, Airtel MD and CEO, India & South Asia Gopal Vittal said, “I am pleased that our revenue growth is broad based across all business units, especially the domestic enterprise and corporate segment, which saw revenues grow by 18.1 per cent, and DTH business which had a underlying topline growth of 26.8 per cent.”

     

    Airtel DTH reported 15.8 per cent increase in YoY revenue to Rs 684.8 crore in Q1-2016 as compared to the Rs 591.5 crore in Q1-2015 and 7.9 per cent more than the Rs 634.8 crore in Q4-2015.

     

    The telecom major’s DTH segment reported a 67 per cent growth in operating profit (EBIDTA) in the current quarter at Rs 240.8 crore (46.1 per cent margin) as compared to the Rs 143.8 crore (24.3 per cent margin) in Q1-2015 and 15.9 per cent more than the Rs 207.8 crore (32.7 per cent margin) immediate trailing quarter.

     

    Airtel’s DTH segment reported 10.9 per cent YoY growth in Airtel DTH customer base for the current quarter at 104.12 lakh as compared to the 93.88 lakh in Q1-2015 and 3.4 per cent growth as compared to the 100.73 lakh in Q4-2015.

     

    As mentioned above, ARPU in Q1-2016 improved significantly to Rs 222 as compared to the Rs 214 in both Q1-2015 and Q4-2015. Monthly churn in the current quarter was higher at 0.8 per cent as compared to the 0.6 per cent in the corresponding year ago quarter, but lower than the one per cent in the immediate trailing quarter.

     

    Dish TV

     

    Dish TV has shown almost flat QoQ revenue growth in Q1-2016. The company reported 0.9 per cent higher consolidated net total Income from Operations (TIO) in the current quarter at Rs 736.68 crore as compared to the Rs 729.93 crore in the immediate trailing quarter and 19.2 per cent more than the Rs 618.04 crore in Q1-2015.

     

    As mentioned above, the company has reported 55.2 per cent higher PAT at Rs 54.21 (7.4 per cent margin) as compared to the Rs 34.94 crore (margin 4.8 per cent) in Q4-2015. The company had reported a loss of Rs 14.97 crore in Q1-2015, while it had reported a consolidated PAT of Rs 3.14 crore for FY-2015.

     

    With effect from 1 April, 2015, Dish TV says that it has started netting-off certain collection fees paid to its trade partners from its topline. This has resulted in the company’s topline getting shrunk by around four per cent, with a similar number being decreased from the middle line.

     

    Further, Dish TV transferred its non-core business (including set-top boxes, dish antenna and related services) to its wholly owned subsidiary Dish Infra Services Private Limited (formerly known as Xingmedia Distribution Private Limited) on 1 April, 2015 on a going concern basis.

     

    The company reported addition of 3,90,000 net subscribers in Q1-2016, taking its total subscriber base to 1.33 crore as on 30 June, 2015. Post consolidation, Dish TV’s ARPU was Rs 173 versus Rs 172 (QoQ) in Q4-2015. The company reported consolidated subscription revenues at Rs 628.88 crore, up 20.6 per cent YoY.

     

    Dish TV chairman Subhash Chandra said, “Dish TV has been actively contributing to the ‘Digital India’ movement by digitizing analog TV homes in DAS phase 3 and 4 markets and remains optimistic about its prospects to acquire a substantial share in these markets.”

     

    Dish TV managing director Jawahar Goel added, “Our first quarter results are in line with the success of our regional and high definition (HD) strategy. Our regional offering, ‘Zing’, would soon be launched in Kerala and would carry the largest cache of vernacular channels offered in that market. ‘Zing’ cemented Dish TV’s supremacy in the DAS Phase 3 and 4 markets with custom-made content, hardware and service packages for the regional audience. High definition continues to be a value driver and a key differentiator for us compared to other DTH offerings in India. Dish TV’s industry leading bandwidth capacity supports 42 HD channels, the largest on offer by any distribution platform so far.”

     

    Further, Dish TV recently formed a content negotiating joint venture (JV) called Comnet with its group company and multi system operator (MSO) Siti Cable Network Limited. Both Dish TV and Siti Cable are equal partners in the JV that came into existence on 1 July, 2015. As part of the JV, both companies will hold joint discussions with broadcasters post, which separate direct contracts between the broadcaster and distribution platform will be signed. The JV also tends to bring together the industry on contentious taxation issues like the recent arbitrary hike in entertainment tax in Delhi.

     

    Videocon d2h

     

    For Videocon d2h, the addition of 6.1 lakh gross subscribers and 4.6 lakh net subscribers in Q1-2016 coupled with higher ARPU for Q1-2016, resulted in a YoY 32.1 per cent growth in subscription revenue and 23.3 per cent growth in revenue from operations (TIO) in Q1-2016. On a QoQ basis, subscription revenue increased 3.7 per cent, while TIO increased six per cent. The company also reported a marked fall in finance costs and consequently the company’s loss in the current quarter more than halved to Rs 24.4 crore as compared to the Rs 55.8 crore in Q1-2015 and was less than a third of the Rs 75.7 crore in Q4-015.

     

    TIO in Q1-2016 at Rs 662.83 crore was 23.3 per cent more than the Rs 537.65 crore in Q1-2015 and 6 per cent more than the Rs 625.27 crore in Q4-2015.

     

    Videocon achieved strong subscription revenue growth of 32.1 per cent to Rs 599.61 crore (90.5 per cent of TIO) in Q1-2016 as compared to the Rs 453.77 crore (84.4 per cent of TIO) in Q1-2015 and growth of 3.7 per cent as compared to the Rs 578.33 crore (92.5 per cent of TIO) in the immediate trailing quarter Q4-2015.

     

    Average revenue per user (ARPU) in Q1-2016 at Rs 205.30 was 9.7 per cent more than the Rs 187.14 in the corresponding year ago quarter and was 1.5 per cent more than the Rs 202.17 in Q4-2015. (Conversion rate from 1 dollar = 62.59 Indian rupee for all the three quarters).

     

    The company considers advertisement revenue as an important contributor to its numbers, and is beginning to see an encouraging response from multiple advertisers. Videocon d2h recently set up an advertising team to sell ad inventory on its own proprietary channels and added three proprietary channels – d2h nursery rhymes; d2h Cinema HD; and another music channel. The company has also launched three Active services, namely, Active Kids, Active Games and Active Learning in this quarter, which the company says are beginning to get traction from its customer.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We are pleased to declare a strong set of results for the quarter ended 30 June, 2015 and are on track to achieve the guidance provided for fiscal 2016. With a strong subscriber growth outlook, DTH sector gaining market share over cable and an improving ARPU scenario; we believe we are just at the beginning of a multi-year strong growth opportunity.”

     

    Conclusion

     

    The three players considered in this report had an approximate combined market share of 67 per cent in among the private players India at the end of the previous year, or more than two-thirds. It is still early days as yet to really conclude that the DTH sector in India has turned the corner based on good results for only two consecutive quarters reported by three companies that represent about two thirds of the sector. Of course, the amount of representation goes up to 75 per cent of the private players, if one were to consider the Sun TV market share of eight per cent. However, looking at the intensity and the moves of these players, it is quite likely that the sector should continue showing improved positive results, and may have turned the corner in Q4-2015.

  • Made-in-India STBs sale to witness 15% growth in DAS phase 4

    Made-in-India STBs sale to witness 15% growth in DAS phase 4

    NEW DELHI: With the government’s emphasis on Make in India, local manufacturing of set top boxes (STBs) that are built within the country is showing a steady increase, even as India continued to lead STB shipments for the quarter ended June 2015 accounting for about 94 per cent of the total shipments to the SAARC region (Bangladesh, Nepal, India, Pakistan and Sri Lanka).

     

    With digitisation in India and other countries in the region propelling the demand for SD STBs to HDTV and hybrid boxes, the STB market in major South Asian Association for Regional Cooperation countries is witnessing steady and robust growth.

     

    According to research from Dataxis, indigenous manufacturing had been merely five per cent in the Phase I and Phase II of Digital Addressable System (DAS). While this has seen a steady growth in the third phase, the sale of Made-in-India STBs is likely to witness growth up to 15 per cent in the fourth phase of digitization.

     

    “Local manufacturing in India, which got a shot in the arm with the Indian government’s Make-in-India initiative, is slowly picking up as indigenous brands are signing deals with MSOs in third and fourth stage. The local STB brands are opting to independent, regional MSOs than the pan-India MSOs or national players,” says Dataxis analyst Sreeja VN.

     

    STB shipments to SAARC countries have witnessed 20 per cent quarter-on-quarter growth during the second quarter of 2015. In Q2 2015, 4.38 million STBs were shipped in the SAARC region with an estimated value of $96 million.

     

    The Dataxis research also finds that the quantity of the STB shipments in India the first half of this year has declined compared to the same period a year ago. However, the total number of STBs shipped in Q2 2015 registered an increase on quarter-on-quarter basis.

     

    Technicolor tops the STB shipments to SAARC in the Q2 2015. The company’s recent deal to acquire Cisco’s STB unit could further bolster Technicolor’s presence in the SAARC STB market.

     

    Airtel Digital TV, Dish TV and Videocon d2h, the three major DTH players have announced their plans to focus on deploying indigenous brands, which will give a boost to domestic manufacturing of STBs in India. The first half of the 2015 also witnessed DTH players partnering with Indian brands to source STBs manufactured indigenously.

     

    Another notable trend, according to Dataxis Research, is the increasing demand for HD STBs in the region. Dataxis’s analysis of STB shipment for the H1 2014 and H1 2015 depicts steady growth in the volume of HD STBs shipped to India. The rise in the number of HD STBs has also contributed to a rise in the average selling price of STBs shipped in the first half of 2015 compared to the same period last year.

     

    The report says that the key STB vendors for the quarter are: Technicolor, Skyworth, Changhong, Huawei and Coship (international vendors), and Mybox, One-eIGHT technologies, Trend Electronics, Ridsys, and Willet Communications (domestic vendors). 

  • Videocon d2h launches mobile TV app; strengthens OTT commitment

    Videocon d2h launches mobile TV app; strengthens OTT commitment

    MUMBAI: In order to strengthen its over the top (OTT) service, direct to home (DTH) operator Videocon d2h has launched a mobile TV app. The new app – Direct to Mobile TV will make it possible for Videocon d2h subscribers to watch television anytime, anywhere on their mobile phones.

     

    Available on both iOS and Android, the Direct to Mobile TV app will give viewers instant access to a wide range of news, entertainment, sports and movie channels. The platform currently boasts of more than 70 select live TV channels and more than 3,000 movies and videos.

     

    Priced at Rs 60 per month, the offering includes channels, such as Sony Entertainment Television, Sony Max, Sony Music, Sab, Aaj Tak and many regional language channels. The service also features a programme guide, show reminders and social media integration, besides the What’s Hot section.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We are happy to be on the leading edge of India’s OTT revolution with the launch of our Direct to Mobile TV app. This is an important move for Videocon d2h, as we strengthen our commitment to introducing new technologies to our subscribers, allowing them to have a robust and enhanced experience while viewing our contents. We are confident that an increasing number of consumers will enjoy this offering in the days to come.”

     

    The Direct to Mobile TV service targets an increasing number of working professionals, shoppers and students spending time outside their homes with round-the-clock access to TV, films and other desired programmes regardless of location.

     

    Videocon d2h CEO Anil Khera added, “With our new Direct to Mobile TV app, Videocon d2h’s subscribers will never have to miss their favourite shows while on the move. We believe it affirms our continuous focus on innovation and our ability to deliver high quality solutions and services. We are sure that this mobile TV app will be of great interest to our viewers and will ensure our prominent presence in the OTT space.”

  • Q1-2016: Subscription revenue growth, lower finance costs reduce Videocon d2h loss

    Q1-2016: Subscription revenue growth, lower finance costs reduce Videocon d2h loss

    BENGALURU: The addition of 6.1 lakh gross subscribers and 4.6 lakh net subscribers in Q1-2016 (quarter ended 30 June, 2015), coupled with higher average revenue per user (ARPU) for Q1-2016, resulted in a y-o-y 32.1 per cent growth in subscription revenue and 23.3 per cent growth in revenue from operations (TIO) in Q1-2016 for Videocon d2h.

     

    On a q-o-q basis, subscription revenue increased 3.7 per cent, while TIO increased six per cent. The company also reported a marked fall in finance costs and consequently, the company’s loss in the current quarter more than halved to Rs 24.4 crore as compared to the Rs 55.8 crore in Q1-2015 and was less than a third of the Rs 75.7 crore in Q4-015.

     

    Videocon achieved strong subscription revenue growth of 32.1 per cent to Rs 599.61 crore (90.5 per cent of TIO) in Q1-2016 as compared to the Rs 453.77 crore (84.4 per cent of TIO) in Q1-2015 and growth of 3.7 per cent as compared to the Rs 578.33 crore (92.5 per cent of TIO) in the immediate trailing quarter.

     

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

     

    TIO in Q1-2016 at Rs 662.83 crore was 23.3 per cent more than the Rs 537.65 crore in Q1-2015 and six per cent more than the Rs 625.27 crore in Q4-2015.

     

    Average revenue per user (ARPU) in Q1-2016 at Rs 205.30 was 9.7 per cent more than the Rs 187.14 in the corresponding year ago quarter and was 1.5 per cent more than the Rs 202.17 in Q4-2015. (Conversion rate from 1 dollar = 62.59 Indian rupee for all the three quarters).

     

    The company’s finance costs in Q1-2016 reduced 26.8 per cent to Rs 76.5 crore (11.5 per cent of TIO) as compared to the Rs 104.5 crore (19.4 per cent of TIO) in the corresponding year ago quarter and was an impressive 41.2 per cent lower than the Rs 130.1 crore (20.8 per cent of TIO) in Q4-2015. 

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We are pleased to declare a strong set of results for the quarter ended 30 June, 2015 and are on track to achieve the guidance provided for fiscal 2016. With a strong subscriber growth outlook, DTH sector gaining market share over cable and an improving ARPU scenario; we believe we are just at the beginning of a multi-year strong growth opportunity.”

     

    During this quarter, Videocon d2h added three proprietary channels and also set up an advertising team to sell ad inventory for the same. These channels are d2h nursery rhymes, d2h Cinema HD and a music channel. Additionally, it also added three Active services, namely, Active Kids, Active Games and Active Learning during the quarter, which have started getting traction from customers.

     

    Dhoot added, “I am happy to share that we recently set up an advertising team to sell ad inventory on our own proprietary channels. We are beginning to see an encouraging response from multiple advertisers.”

     

    Issuance of bonus shares

     

    The board of directors of the company, at their meeting held on 22 July, 2015, determined that the Initial Performance Hurdle has been achieved and satisfied and hence has approved, subject to approval of Ministry of Information and Broadcasting and such other approvals and consents as may be required under the applicable regulations, the issuance of 23,360,000 equity shares (equivalent to 5,840,000 ADSs) to the shareholders of the company as of the date of the Contribution Agreement and the issuance of 3,999,984 equity shares (equivalent to 999,996 ADSs) to the sponsor by way of a bonus issue, in accordance with the terms of the Contribution Agreement and the Articles of Association of the Company. Further, Saurabh Dhoot also becomes entitled to receive 1,400,000 (equivalent to 350,000 ADSs) equity shares of the Company.

     

    The Initial Performance Hurdle was that the last sales price of the Videocon d2h ADSs on NASDAQ (converted into Indian rupees on each such day at the Indian Rupee/U.S. Dollar Exchange Rate on such date) for 20 trading days in a 30-trading day period equals or exceeds 125 per cent of the Listing Price (i.e. price per ADS issued to the SEAC Distribution Record Holders converted into Indian rupees at the Indian Rupee/U.S Dollar Exchange Rate prevailing on the Closing Date, March 31, 2015).

     

    Let us look at the other numbers reported by Videocon d2h

     

    The company’s EBIDTA (operating profit) in Q1-2016 increased 26.3 per cent to Rs 187.43 crore (28.3 per cent margin) from Rs 148.45 crore (27.6 per cent margin) in Q1-2015 and increased 15.9 per cent from Rs 161.77 crore (25.9 per cent margin) in Q4-2015.

     

    Videocon d2h total expenditure (TE) in Q1-2016 increased 20.3 per cent to Rs 618.1 crore (93.3 per cent of TIO) as compared to the Rs 513.7 crore (95.5 per cent of TIO) in Q1-2015 and increased 2.2 per cent as compared to the Rs 604.5 crore (96.7 per cent of TIO)

     

    Videocon d2h’s operating expense in Q1-2016 at Rs 379.1 crore (57.2 per cent of TIO) was 22.7 per cent more than the Rs 309 crore (57.5 per cent of TIO) in Q1-2015 and was 4.2 per cent more than the Rs 363.7 crore (58.2 per cent of TIO) in Q4-2015.

     

    The company says that its content cost as percentage of revenue in Q1-2016 was 37 per cent as compared to 32.7 per cent in Q1-2015 and 38.4 per cent in the immediate trailing quarter.

     

    Videocon d2h’s selling and distribution expense in the current quarter increased 17.8 per cent to Rs 50.9 crore (7.7 per cent of TIO) as compared to the Rs 43.2 crore (8 per cent of TIO) in Q1-2015 and increased 10.4 per cent as compared to the Rs 46.1 crore (7.4 per cent of TIO) in Q4-2015.

     

    Administrative and other expense in Q1-2016 increased 15 per cent to Rs 14.6 crore (2.2 per cent of TIO) as compared to the Rs 12.7 crore (2.4 per cent of TIO) in Q1-2015, but reduced by 42.3 per cent as compared to the Rs 25.3 crore (four per cent of TIO) in Q4-2015.

     

    Employee Benefit Expense in Q1-2016 increased 26.6 per cent to Rs 30.9 crore (4.7 per cent of TIO) as compared to the Rs 24.4 crore (4.5 per cent of TIO) in Q1-2015 and was 8.4 per cent more than the Rs 28.5 crore (4.6 per cent of TIO) in Q4-2015.

     

    Videocon d2h CEO Anil Khera said, “We believe around 10 crore homes will be up for grabs by digital cable and DTH operators in the next four – five years. DTH should gain higher market share in Phase III and IV of the Government of India digitization plan in comparison to the prior phases. We are excited and prepared to take on the significant subscriber growth opportunity ahead of us, as we approach the Phase III digitization deadline. While actual implementation could take time, we continue to believe the government has a strong intent to switch off analogue cable as per the plan.”

  • Videocon d2h expands HD offering to 37 channels

    Videocon d2h expands HD offering to 37 channels

    MUMBAI: Videocon d2h has expanded its high-definition (HD) offering to 37 channels by adding Star Movies Select HD and Fox Life HD on channel number 258 and 468 respectively. 

     

    The new channel launches on its platform continue to validate Videocon d2h’s commitment to providing Indian audiences with high-quality content across an array of genres and formats.

     

    Star Movies Select HD will premiere two new films not previously released in India each month, in addition to airing a new movie everyday. Additionally, Fox Life HD features a slate of scripted and non-scripted content that is inspired by real life as well as appealing and appropriate for the entire family. Fox Life HD will be having multiple audio feeds in Hindi, Tamil and Bengali besides English. 

     

    Videocon d2h plans to continue to add more HD channels shortly, with an aim to have as many as 50 HD channels. 

     

    “We have been relentless in our pursuit to gratify our customers’ with an exceptional viewing experience. Videocon d2h’s substantial offer of wide range of HD channels is a testimony to that endeavour.  We remain committed to expanding Videocon d2h’s channel offerings and content as a means to providing a superior viewing experience to our customers, augmented by innovative technology and the best customer service. It’s a simple plan that we believe will result in a major upgrade for India’s TV viewing public,” said Videocon d2h executive chairman Saurabh Dhoot. 

     

    Videocon d2h CEO Anil Khera added, “Videocon d2h has been extremely aggressive and innovative when it comes to technology upgrades, new content offerings and launching new services all in an effort to keep ahead of current industry trends. Fox Life HD with multiple audio feeds and Star Movies Select HD are two premium HD channels that bring even more quality content to our subscribers resulting in a superior viewing experience. Keeping both our promise to provide the best channels and content across all genres and our commitment to customer satisfaction has built a strong level of trust between our customers and Videocon d2h, and we value that relationship.”

  • Star Utsav to go pay from 16 August

    Star Utsav to go pay from 16 August

    MUMBAI: More than a decade after its launch, Star Plus’ sibling free-to-air (FTA) channel, Star Utsav, is set to go pay from midnight of 16 August, 2015, on all cable and direct-to-home (DTH) platforms. 

    “The channel’s FTA contract is about to end on 15 August, 2015 and it does not plan to re-new or extend it further,” sources close to the development told Indiantelevision.com.

    The channel will be priced at Rs 5 on Tata Sky, at Rs 6 on Videocon d2h and at Rs 3 on Hathway Cable and Datacom. Through this development, the channel now aims to earn revenues from both ad and subscription based route. 

    It can be recalled that the channel witnessed a new logo and packaging in the month of January this year to tap and engage with the rural consumers, while keeping at pace with the urban audience. Moreover, it had changed its programming from six days a week to the entire week designed to mirror the daily routines of its viewers.

    According to a media expert, the purpose of launching Star Utsav was to reach out to its desired TG in smaller cities and towns where audiences were not exposed to Star Plus. However with the channel going pay, the expert doubts whether the channel will get the desired visibility. “The logic to me is unclear, why would consumers want to pay for a repeat content? The move makes sense when the channel experiments by bringing in original content for the same audiences,” he said.

  • Videocon d2h targets advertising revenue; strengthens ad sales team

    Videocon d2h targets advertising revenue; strengthens ad sales team

    MUMBAI: Direct to home (DTH) operator Videocon d2h is looking at increasing its advertising revenues. In order to achieve this, the DTH operator will not just offer targeted advertising across its regional language and proprietary channels, but also launch new channels shortly.

     

    In order to achieve the target, the operator has formed a new executive advertising team to be headed by Indian media sales experts.

     

    The advertising initiative, which will target inventory opportunities on the Videocon d2h platform, comes in response to the positive feedback from the operators’ advertisers such as Volkswagen, Honda, Disney, Sony TV, Zee Group and Star Sports. Media buyers will also be able to advertise on Videocon d2h’s home channel and info bar when changing channels.

     

    The new Videocon d2h advertising sales team is led by media veteran Tanmay Srivastava, who joins the company after serving as MSM Network head, advertising sales.  Reporting directly to Videocon d2h deputy CEO Rohit Jain, the operator has also recruited two other senior executives with extensive local advertising sales experience.

     

    The operator began offering advertising on its platform only last year. The inaugural effort focused on its home channel and generated approximately US$1.5 million in fiscal 2015. With its expanded initiative, Videocon d2h is anticipating substantially bigger advertising revenue gains in fiscal 2016.

     

    Videocon d2h CEO Anil Khera said, “Today’s announcement reconfirms our commitment to continuously identify growth opportunities for our shareholders. With the goal of generating new revenue through an expansive, targeted ad sales platform, we have assembled a solid team that is more than capable of moving this initiative forward for us. We look forward to being a part of their success in tapping Videocon d2h’s reach of 65 million consumers with exciting, new options, and we anticipate the advertising program to expand even further as we launch our own branded channels in the future.”

     

    Silver Eagle Acquisition founder Harry Sloan further added, “During the recent NASDAQ listing process, we focused on advertising sales as one of the important high margin growth opportunities.  As we look to roll out a bouquet of new branded channels we will be able to use the extensive reach of our platform to turn ad sales into bottom-line dollars. This is a programme that will benefit our growing consumer base, as well as those advertisers seeking their stake in the lucrative Indian TV market. Given the exciting growth in overall Indian advertising and the television ad market in India, we are very pleased to see the development of an effective advertising sales force implemented quickly and effectively.”