ITV

Tag: Vikram Kaushik

  • ‘TV is the only medium that does not have geographic targeting’ : Amagi Media Labs co-founder Srinivasan K A

    ‘TV is the only medium that does not have geographic targeting’ : Amagi Media Labs co-founder Srinivasan K A

    Geographic targeting of television advertising is a business that is still in a nascent stage in India. Once adopted by various players in the television advertising chain, it has the potential to be a game-changer in the way brands and products are promoted and aired in India. 

    Bangalore headquartered Amagi Media Labs (Amagi) has the advantage of being one of the first players in this space in India. Amongst the Amagi team are investor and board member N S Raghavan, who was one of the co-founders and joint managing director at Infosys, former ZeeEntertainment Enterprises Ltd CEO Pradeep Guha and ex-CEO of Tata Sky Vikram Kaushik as advisors.

    Amongst the three founders at Amagi who run the show are Baskar S who works on strategy, investments and R&D, and Srividhya S who works on engineering and technology deployment.

    In an interview with Indiantelevision.com‘s Tarachand Wanvari, Amagi‘s third co-founder Srinivasan K A. (Srini as he is called by his friends) talks about the company‘s strategy and growth plans.

    Excerpts:

    How does Amagi tap into advertisers who look at geographic targeting?

    We at Amagi make TV advertising smarter. If you look at all the media options available to an advertiser now, except at a language level, TV is the only medium that does not have geographic targeting. We look to strike out that disadvantage for TV by bringing targeted advertising on this medium.

    By rolling out our patent-pending technology infrastructure across the country, we enable different ads to be run in different regions on the exact same ad spot. So a single 30-sec ad spot can have different creatives running in different cities across the country.

     

    So you have a business model that can assist local as well as national advertisers?

    We have two business models. The first is local ads. Purchasing power across the top 100 cities in India is growing dramatically. This has been good for a variety of regional businesses in FMCG, retail, real-estate and education catering to the local population.

    These businesses have the capacity to spend significantly in advertising to build their brand, but are limited by the absence of a viable TV advertising option.

    Advertising on satellite TV is expensive and there is a significant spillage beyond their target geography for these businesses. So a lot of them have stayed away from satellite TV, except in pockets like Chennai, where a viable local option was available.

    Amagi for the first time in the country has brought the option of advertising on satellite TV channels for a specific region at a fraction of the national price. This enables local businesses to build brands that emotionally connect with the local audience and unleashes the power of TV advertising for these businesses in the most cost-effective manner. 

    The second model is Ad Versioning. This business option is specifically targeted at large national advertisers. Ad versioning allows able to play different creatives in different parts of the country on the ad spots that they have already bought from the channel.

    One example could be an advertiser can have different creatives for the same brand in different parts of the country – one with Aamir Khan in the north and Vijay in the south, say during an ad spot in a cricket match.

    Another example could be to have different local promotions and offers on products in different regions which today are entirely done in print as TV is not isolatable by market.

    This is the Holy Grail for advertisers who want to target Internet, but want the reach of TV. Amagi‘s platform enables this for advertisers. 

    Amagi also works with TV channels and operators to enable this option for advertisers.

     

    How have the various players in the equation taken your offering – advertisers, agencies, television channels, MSOs and the cable operators?

    This is a change in the way TV advertising is currently done. Amagi is working with multiple partners in the TV ecosystem to speed up adoption – obviously, anything as dramatic as this option requires time and patience and we are seeing adoption rate accelerating now.

    We believe that this is good for advertisers and the broadcasters – as this brings more advertising monies to TV and improves productivity and effectiveness for the advertiser.

    In the US, local advertising on TV is a $5 billion business, and has been working great for the whole TV ecosystem, and we believe that we can replicate the same success here in India. Like the US, India has a vibrant local economy that has largely been underserved from media availability perspective. We are filling that gap.

    Amagi is bringing in a new set of advertisers at the local level, and a new set of product advertising from larger advertisers which never looked at TV as a viable option. We believe that this a great boon for TV channels as more advertisers and product categories would advertise on their channels, leading to higher yield and revenues. 

    Amagi partners with MSOs who for the first time have the opportunity to participate in sharing advertising revenue.

     

    What is the size of the market for your services? 

    The size of the market comes from two parts: Regional businesses which contribute 40 per cent of print advertising in the country today; and large businesses that see that Amagi platform enables their ad spends to work better and provide 20 per cent-30 per cent effective over their current ad spends. 

    With these two market opportunities combined, the potential for this capability is above Rs 50 billion by 2015. 

     

    ‘Amagi for the first time in the country has brought the option of advertising on satellite TV channels for a specific region at a fraction of the national price‘
    What is driving your growth?

    We are an ad marketplace. We connect right content with right advertisers at the local level. Our growth comes from expansion across geographies, and bringing in a portfolio of TV channels that cater to the needs of local businesses.

    We are currently in 15 cities across the country, including Mumbai and Delhi. We will be in 22 cities in the next 6 months. We believe that will give us the critical mass to bring a compelling bouquet of TV channels to local businesses; we will have established a local TV marketplace across the country.

     

    Could you tell us how your system works and the safeguards from failure and intrusion or misuse or piracy that you have in your system?

    Amagi places ad insertion systems in different cable MSO headends across the country. These systems uniquely and predictably identify the ad spot that is allocated for Amagi, and replaces them with different content in different regions.

    Amagi is a completely automated technology platform and are securely controlled and monitored from a centralised location. So essentially these ad insertion systems cannot be programmed, tampered or intruded at these headends. The only way to programme them to do their activities is from a secure Amagi control server located in Bangalore. So, essentially these boxes have no way to be tampered at the local level. 

    Amagi has been running this technology for the past two years and has done close to half a million seconds of local advertisements across multiple advertisers across the country. 

    Amagi‘s technology is one of the most advanced, robust and comprehensive technologies in the world, where this is the only system that can handle dynamic requirements of sports, news TV channels with their dynamic scheduling needs and abrupt end of ad spots during sports events. We are in discussions with broadcasters outside the country as well, as this need is universal. 

    So this is a mature system with a built-in secure work-flow that guarantees no possibility of any misuse whatsoever.

     

    How strong is competition in the space that you are in?

    Rediff is one company that started earlier than us in trying to address a similar opportunity. I cannot comment on where they are in their lifecycle.

     

    How scalable is Amagi?

    We have a scalable technology platform, large sales force across 15 cities and hundreds of installations across the country, and are exponentially increasing the number of deployments as we speak. More than 230 advertisers have advertised on our platform with close to half a million seconds of advertising. 

    We believe this the future of TV, and would be happy to see more people exploring this opportunity as it will help build a vibrant marketplace.

  • ‘Collecting subscriber numbers is not enough’ : Tata Sky MD & CEO Vikram Kaushik

    ‘Collecting subscriber numbers is not enough’ : Tata Sky MD & CEO Vikram Kaushik

    When Star floated a company for DTH, there were several issues raised on shareholding and other related matters. Was that a ghost that initially haunted you when you joined Tata Sky?

    When on its own, Star made no progress and the DTH venture couldn‘t kick off due to reasons outside their control. Then they floated a joint venture company with the Tatas and I joined to head that. The past never bothered the venture. We developed a blueprint from the first day itself, but the project was delayed as we chased for licence approval.

    The delays were not entirely due to the government; competitors wanted to delay the project. The bad thing that happened is that several retrograde steps were introduced which should have never been there in the first place. Interoperability, no exclusive content and foreign direct investment (FDI) cap of 49 per cent, for instance. There is still a lot of nervousness regarding foreign ownership.

    But isn‘t the government more comfortable with DTH now?

    The government has started understanding that without digitalisation, the media and entertainment industry can‘t grow; you won‘t get transparency and addressability in the distribution chain.

     

    Has the government then become supportive?

    The government needs to do much more. Across the world, the government has provided subsidies for digitalisation. In India, the private sector has entirely taken up this responsibility – and this investment is coming at a very high cost.

    The DTH sector is heavily taxed. There is also a distortion because of the under-declaration of subscribers by the cable operators. This leads to the inevitable need of regulatory intervention to correct these anomalies.

     

    Despite these anomalies, the DTH sector is on a fast growth track. When you first outlined the business plan, did you foresee such an exponential growth in DTH subscribers? 

    We are somewhat surprised by the volume growth. But nobody expected that India would have six players and with deep pockets. The marketing activity stimulated the sector‘s growth. Also, the digital cable initiatives could not match up to the DTH challenge; cable has not been able to upgrade.

     

    How did you strike a balance between volume chase and maintaining a premium brand positioning?

    When we started out, we decided that we won‘t go to small towns and villages and chase low lying fruits. Our strategy was to first capture the top 50 towns and then spread out. Dish TV, on the other hand, tapped the cable dry areas and expanded outside.

    We feel ours has been the right approach. We have a better quality subscriber base. And while Dish TV has more subscribers, we are the biggest Indian DTH company when it comes to revenues.

    The dilemma continues even today: Should we go largely for value or look at volumes. It is easy to chase volumes. In the longer run, the correct strategy is not to lose sight of volumes but focus on value. We never panicked when our competitors mopped up more subscribers in a month. What matters in the long term is higher ARPUs and sticky customers.

    ‘Given the cable ARPUs and lack of exclusive content, it is difficult to independently drive them up beyond a point. The content cost is also high, while the hardware prices are not low enough. It is a tough game to play‘

    What other hard decisions did you have to take at the start?

    We had to decide whether the STBs should be given free or sold. We believed the free model, in vogue in matured ARPU markets, wouldn‘t work in India. That turned out to be the right decision.

     

    Why did you soon have to revise your investment plan from Rs 30 billion to Rs 40 billion?

    We were initially looking at an investment of Rs 12 billion and then came up with a realistic estimate of Rs 30 billion. Subsequently, we revisited that plan and estimated our funding requirement to be Rs 40 billion. There are too many DTH operators and the price war came at an early stage of the game.

     

    Has that business projection gone through further changes?

    Our fund requirement will be over Rs 40 billion. We have already spent more than Rs 35 billion and have mopped up over six million customers. We are on course for operational break even. Broadly, this takes 5-7 years.

     

    Aren‘t you disappointed that Tata Sky still lags behind Dish TV in subscriber numbers?

    They may have more subscribers because of their first mover advantage, but we have beaten them in revenues. Though ARPUs (average revenue per user) for the sector are still pretty bad (Rs 135-150), ours is the highest in the industry (Rs 195).

    What we have learnt in this business is that collecting subscriber numbers is not enough. This is a sector where subscriber acquisition costs are high and ARPUs low. If you have a faster churn, then you have a real problem. Sun Direct and Videocon d2h run a danger in that.

     

    Can ARPUs rise to a comfortable level?

    Given the cable ARPUs and lack of exclusive content, it is difficult to independently drive them up beyond a point. The content cost is also high, while the hardware prices are not low enough. It is a tough game to play.

    The hyper competition among the DTH players has not been healthy. Everybody has bled heavily on account of the price war.

     

    And still in this clutter, Tata Sky has stood out as a brand. How did you manage that?

    Building a brand in this sector is a unique challenge. We build a pedigree brand with our high quality and performance focus. When you have the ‘Tata‘ and ‘Sky‘ names behind the product, the challenge is to weave a double-barrelled branding. The fact is that we have stood up against Airtel and the others.

    We have also extended the brand to franchises like Tata Sky Plus. The satisfying part is that in a highly cluttered environment, we have spent less for many years than our competitors, but used the medium much more effectively. We have also used celebrity advertising in a manner that was never done before.

     

    How has Sky been an advantage?

    We could have the best and world class knowhow from them. There were 30 expatriates working in Tata Sky before we even started our service. That resource is continually available to us.

    The Tata brand, in turn, brought in credibility with the government, trade, consumers and potential employees.

     

    Q. Star has upped its effective stake in Tata Sky to 29.8 per cent. The additional 9.8 per cent stake for Rs 3.24 billion pegs the valuation of Tata Sky at Rs 33.06 billion. The market cap of dish TV is Rs 74.73 billion. Are you happy with this valuation?

    Star will hold close to 30 per cent in Tata Sky. The Tatas will have around 60 per cent and Temasek 10 per cent.

    As for Tata Sky‘s valuation, this won‘t be the right way to look at it. The stake acquisition is done by one of the promoter partners. This is an internal and not an external valuation.

     

    Q. What are the technological advantages that Tata Sky has brought to the sector?

    We continue to lead the way in terms of technology, customer service or innovations relating to packaging. We are the leading platform to promote education – be it to small children or to housewives learning English. We pioneered the concept of pre-paid customers in DTH. We are clearly at the forefront when it comes to PVR, VOD and other interactive services.

    We have played a significant role in bringing the hardware costs down. Interestingly, the set-top box (STB) cost is cheaper from China to India than in China itself. We have also set some global benchmarks in productivity, growth and value creation.

    We have used consumer research very effectively. TruChoice, for instance, recognises viewership habits and makes that content available. People tend to buy genres and that is related to the nature of the family. For those families having children, it is important to have kids programming and knowledge in the menu. Families with older people will tend to look at movie packs.

     

    Q. How do you approach the South India market?

    We don‘t compete on price. The market is too unremunerative.

     

    Q. On the content cost front, do you see the Trai tariff order (channels to give to DTH at rates 35 per cent of analogue cable) as the right formula for DTH companies?

    This is a step in the right direction, though we feel it should have been closer to 20 per cent. Broadcasters shouldn‘t have moved the court. Addressability is in the interest of the broadcasters; and yet they are resisting any kind of tariff regulation. I see short term perspectives prevailing in the entire media industry.

    Q. Do you see the telecom companies having an advantage in the DTH space?

    The telecom players feel that there will ultimately be convergence and they will stand to gain. They are, perhaps, driven by some fancy strategists. The truth is that there is need for domain expertise in each of these businesses. And each of these businesses are unique.

     

    Q. Why is private equity reluctant to invest in the DTH companies?

    I do not see too much private equity coming into the DTH sector. There will be a selective and long term approach. Fundamentally, the business model is saddled with high taxation, low ARPUs, and too many players. Profitability is an issue. In many cases, by piling up customers, you are not building assets but liabilities.

    We could, perhaps, see consolidation in the next few years. There will be space for three players and maybe a regional operator.

     

    Q. How much of capital will be required by the time the DTH sector reaches 50 million subscribers?

    The industry will need Rs 200-250 billion for 45-50 million subscribers. There is already an investment of Rs 120-150 billion. But there won‘t be shortage of capital to fund the sector‘s growth.

  • ‘The price war has come at an early stage of the DTH game’ : Vikram Kaushik- Tata Sky MD & CEO

    ‘The price war has come at an early stage of the DTH game’ : Vikram Kaushik- Tata Sky MD & CEO

     Tata Sky, a direct-to-home joint venture company between Tata Group and Star, is betting big on value-added services such as PVR (personal video recorder) and is ready to pump in another Rs 20 billion as it eyes a subscriber base of eight million by 2012.

     

    The focus is on building a strong brand with heavy spending on advertising. While rival network Dish TV has used Bollywood star Shah Rukh Khan, Tata Sky has Aamir Khan as its brand ambassador. Occupying a premium position in the mindshare has been part of the strategy as the company has the technology support of News Corp. and the trusted name of the Tatas.

     

    The DTH game has got tougher with competitive entries from Sun Direct, Reliance’s Big TV and Bharti’s Airtel Digital TV. This has meant a rise in project expense from Rs 30 billion to Rs 40 billion, lower ARPUs and high customer acquisition costs.

     

    Cable TV, which has a strong footprint across the country, is also offering stiff competition to DTH operators.

     

    In an interview with Indiantelevision.com’s Sibabrata Das, Tata Sky MD & CEO Vikram Kaushik talks about the company’s decision to stay away from being a discounted brand while fighting at different price points to tap different consumer segments.

     

    Excerpts:

    Has Tata Sky revised upwards the project cost from Rs 30 billion to Rs 40 billion?
    When we first formalised our business plan, we were looking at an investment of Rs 12 billion. Then we came up with a realistic estimate of Rs 30 billion. We revisited that plan and now believe our funding requirement for the venture would be Rs 40 billion. We have already invested half of this amount.

    Has the project cost gone up because of the higher element of subsidy in the Indian DTH market?
    When we first did our business plan, we didn’t expect so many DTH operators to come in. There is a lot of activity in the category and the price war has come at an early stage of the game. Competitive entries and an explosive growth in volumes mean higher costs. Customer acquisition accounts for a significant percentage of the costs.

    Will this mean that the gestation period for profitability will go up?
    I wouldn’t like to comment on when we would reach the break even situation. DTH is an infrastructure business and requires high investments and long gestation periods. We have no illusions about that. Generally, the break even for this kind of business is in excess of five years.

    Industry estimates put Tata Sky’s losses at Rs 8.15 billion in FY’07 and a little more than that in FY’08. Do these losses fall in line with your business plan?
    I can’t talk on financials.

    Are you in line with the projected subscriber growth?
    We have already touched 2.7 million subscribers and are targeting at least eight million connections by 2012. When we were at the drawing board, our broad plan was to add a million subscribers every year. We are growing faster than that.
    ‘When we first formalised our business plan, we were looking at an investment of Rs 12 billion. We revisited that plan and now believe our funding requirement for the venture would be Rs 40 billion‘

    But are ARPUs (average revenue per user) in place?
    I can’t reveal to you where our ARPUs currently stand. But there are definite efforts to push ARPUs up with the launch of value-added services such as PVR (personal video recorder). This technology allows subscribers to watch a particular television show while recording another. Viewers can also pause and rewind live television programmes. We have priced the set-top boxes (STBs) for PVR, which will use MPEG-4 compression technology, at Rs 8,999. For our existing subscribers, we will be offering at discounted rates.

    Isn’t the pricing on the higher side?
    Being below Rs 10,000, it is very competitively priced. We are aggressively marketing Tata Plus. In just a couple of days since launch, we have already sold 2500 PVRs. It took BSkyB 3-4 years to convert 50 per cent of its eight million subscribers to Sky Plus.

     

    Our priority is to make this really big as the product is very powerful and also addresses the ARPU issue. We realise that people in India are investing in high quality entertainment at home as out-of-home is becoming expensive. The PVR is a recognisation of this trend and we want to capitalise on it.

    Are you looking at niche content for lifting your ARPUs?
    Unless we have a critical mass, we can’t slice the market that thin in India. The Indian DTH market is endemically short of satellite capacity. We have 12 Ku-band transponders on Insat 4A, but want more and nothing is available at this stage. We can address niche audiences and offer more channels to consumers if we have more transponders available.

     

    It is, however, possible to offer premium content like lifestyle within large segments. On our interactive service, we have NDTV Good Times offering specialised cookery.

     

    Segmentation in the marketplace is also possible. And we have interactive services like Actve Wizkids (for children and pre-schoolers), Actve Darshan (24-hour darshan of Sai Baba, SiddhiVinayak, Iskon and Kashi Vishwanath) and Actve Matrimony. But the problem with interactivity is that it is very bandwidth hungry.

    What is the premium content you are lining up?
    We are in talks with movie producers like Sony Pictures, UTV, Eros and Fox for sourcing their movie content. We are looking at recent Bollywood, international and Hollywood content for our pay-per-view service. The challenge is how to get into revenue share deals as we can’t pay high MGs (minimum guarantees) and it is not attractive for the content suppliers if there are not high volumes.

    How about getting premium content channels?
    For premium content channels, we are at an early stage of development. There is also the transponder capacity issue. One area we are looking at is HD channels.

    Are you planning to strengthen your regional content line-up?
    Regional markets are integrated into the overall content plan. We have national, regional, international and eclectic consumers.

    Sun Direct has mopped up over one million subscribers in a short span of time because of its aggressive pricing. How has that impacted you in the southern market?
    Our growth has not stopped in the South because of Sun. We have the right kind of share in the right kind of segment. Sun’s pricing is unviable and we are at 30 per cent premium over them. Their strategy seems to reflect the pressure of their cable TV business while pricing their DTH proposition. The danger is that you can attract the wrong kind of customers – and you are vulnerable to a high degree of churn. In DTH business, this is a recipe for disaster because of the high subsidies involved in customer acquisition.

     

    The South has been a high pay-TV penetration market because of pricing. In this blood bath situation, one has to be cautious and keep away from just adding subscriber numbers.
    Isn’t market leader Dish TV also involved in the price war?
    More than Dish TV, it is Sun Direct which is acting as a discounted brand. The DTH market in India is open to segmentations. We are also offering subscriptions at Rs 99. But the question is how much at the bottom of the market you can afford to go.
    Why hasn’t the Tata Sky brand been able to stop Dish TV from mopping up a high number of incremental subscribers?
    Dish TV has followed a discounted brand strategy. We have operated at a Rs 1000 premium over them from the moment we launched. Dish TV has also picked up the low hanging fruit in smaller markets. Besides, they continue to work as an integrated media company and have leveraged that advantage as a vertical player.
    Has regulation worked against the DTH players?
    Regulations relating to the broadcast industry have been largely progressive. The problem has been the lack of a level playing field across the different addressable platforms. Why should cable operators get channels capped at Rs 5 in the Cas (conditional access system) areas? There is a structural inconsistency in this. Besides, the tax burden on DTH is scandalous. Around 40 per cent of our revenue goes towards taxes and licence fee. When our national objective is to push digitalisation, let’s lower the barriers and incentivise the sector.
    Hasn’t the Telecom Regulatory Authority of India provided some relief to the DTH operators by way of directing broadcasters to offer their channels at 50 per cent of analogue cable TV rates besides making them available at a la carte pricing?
    When we started, there was no RIO (reference interconnect offer). In fact, it is amazing that most of the content deals were done in the court. New players like Reliance, Bharti and Sun would have found it tough if the RIO regulation hadn’t come about.
     

    But even now there is an anamoly. Why should we get content from broadcasters at 50 per cent of what they offer to analogue cable when the Trai and the Information & Broadcasting ministry have formally admitted that the cable sector operates on 20 per cent declaration of their subscriber base?

     

    Besides, DTH should get content from broadcasters at Cas rates since we are an addressable platform.
    But aren’t cable operators offering set-top boxes even below the regulated price because of competition in the marketplace?
    Pay TV in India is subverted by cable prices which are artificially depressed because of under-declarations. DTH operators have had to drop prices because they have to compete with cable. Today the gap is higher between the two because cable TV pricing is artifically suppressed. If some DTH operators decide to go as low as cable, then it becomes unviable.
    Don’t you think exclusivity of content will allow platform providers to raise ARPUs?
    The ARPUs in the UK, US and Australia vary between $60-80. In India, the ARPUs are a fraction of this. Exclusivity of content is there in all markets except India. But we hope the regulation on exclusive content will also wither away. This will allow us room for being more creative and innovative.
    Since cable already has a wide presence, do you see them winning the war against DTH in India as in the US?
    DTH has already tapped over six million subscribers and will see explosive growth from now on. In the US, cable companies have made massive investments to digitalise their networks. And even there, 40 per cent of the market is still with DTH. Indian cable companies have not made such investments. Besides, the cable TV market here is hugely fragmented. And the last mile challenge (multi-system operators do not own much of the last mile which is with the local cable operators) will not go away.
    Tata Sky and Dish TV are on MPEG-2 compression technology while the new players have MPEG-4. What is the status on the inter-operable issue?
    There is a regulation on DTH boxes being inter-operable. But why have a law when this is not being followed?
    But why was Tata Sky opposing the inter-operable clause then?
    The regulator can say that the inter-operability clause was a mistake and just do away with it. We are asking for more clarity on the issue. If we are to switch over, then we want some amount of subsidy which the government can give from the revenue share that we part with them.
    There has been a drive to reduce the revenue share with government. What is the status on this?
    The Telecom Disputes Settlement and Appellate Tribunal has ruled that the licence fee for DTH services should be based on adjusted gross revenue – and not on the basis of gross revenue. But the government has not yet issued any notification on this.
    After Temasek Holdings took a 10 per cent stake in Tata Sky for $55.5 million, have we seen a rise in DTH valuations?
    I can’t talk about valuations or the price at which we got Temasek to invest in. But Temasek has 10 per cent while Star’s holding is untouched at 20 per cent and the Tata Group’s stake has come down from 80 per cent to 70 per cent.
  • Dishtv, Tata Sky plan schemes for World Cup

    Dishtv, Tata Sky plan schemes for World Cup

    MUMBAI: DTH service providers Dishtv and Tata Sky will use the upcoming cricket World Cup to entice their viewers and increase subscription numbers.

    Dishtv has come out with a World Cup For Free offer. It has come out with a special world cup promotional pack at Rs 3990, all inclusive with six months subscription free. This also includes dishtv’s sports active services free for the same six-month period. The offer is being introduced by the dishtv mascot who entices the viewer with his histrionics and invites them to this unique experience only on dishtv.

    Dishtv is positioning itself as offering active services that enable a better than stadium experience for the viewer. Besides digital picture quality and stereophonic sound, viewers will have value added controls.

    The matches can be viewed with multi-camera angles. Subscribers can watch a match through three different camera angles – the main feed, the square leg and the third which will be a mix of stump cam/high wide shot.

    Language Feed: The dish subscriber will have the opportunity to hear the commentary from a choice of five languages – English, Hindi, Tamil, Telugu and Bengali along with a live stadium ambient sound.

    Highlights: Match highlights, i.e. all wickets and key shots like – 4’s, 6’s will be available to the dishtv viewers at the press of a button whenever they want

    Statistics: The dishtv subscriber will have access to a stupendous Amount of cricketing data like team line ups, score cards, in-depth history of the players, their past records and so on again on their TV screens merely at the touch of a button.

    The firm says that subscribers will get the Sports Active services at no extra cost that would otherwise cost Rs. 25 per month.

    Dishtv CEO Arun Kumar Kapoor says, “Cricket is like religion in our country and the Cricket World Cup being the biggest opportunity to delight the consumers. With the advent
    of active services and new consumer offers available in the market, the subscribers have a win win situation. dishtv has always worked towards maximising its viewer’s delight and will continue to do so”.

    Commenting on the caricature launched by, dishtv to flag off the World Cup campaign, dishtv VP marketing Anjali Malhotra says, “The mascot lends a face to the brand that is warm, consumer friendly and trustworthy. Moreover he seems to simplify an otherwise perceived technology product apart from adding an element of fun to our communication as we are but, an entertainment provider to Indian homes. We are sure that the consumers will warm up to him.”

    As far as Tata Sky is concerned the company’s MD and CEO Vikram Kaushik says, “Tata Sky is offering free subscription for three months and has roped in actor Hrithik Roshan for its new marketing campaign.”

    He explains that as part of this campaign select viewers who have subscribed before 15 April will get to watch the World Cup final match with him. In adition the company is extending the free pricing policy to the second, third and fourth television set within a consumer’s household.

    “The new marketing campaign is a step to reach one-million subscriber base by the end of this year. We expect phenomenal subscription during the World Cup.”

  • Tata Sky to pump in Rs 20 billion, expects break even in 5-7 years

    Tata Sky to pump in Rs 20 billion, expects break even in 5-7 years

     MUMBAI: Tata Sky will take 5-7 years to break even and plans to further invest Rs 20 billion to ramp up its direct-to-home (DTH) business.

    “We have already invested close to Rs 10 billion. We will pump in a further Rs 20 billion,” says Tata Sky CEO and MD Vikram Kaushik.

    There is a hardware and content subsidy and it will take us 5-7 years to break even, he adds. Tata Sky charges Rs 3999 for hardware and installation cost while the subscription fee is Rs 300 per month.

    The DTH service provider has a subscriber base of half a million and expects to benefit largely from the ICC cricket World Cup with its free subscription promotional scheme for the next three months.

    It has roped in actor Hrithik Roshan for its new marketing campaign where select viewers would get to watch the World Cup final match with him.

    “We are on course to achieve our target of one million subscribers in our first year of operations. We have activated half a million boxes. The World Cup should give us a spurt as we have interesting value-added features. In the Cas (conditional access system) areas, we have also seen a rise in demand for our service,” says Kaushik.

    Tata Sky hopes to add on the Sun network channels soon. “There was a hearing in the court today. The final hearing will be before the first half of March,” says Kaushik.

  • ‘TOI’ ties up with Tata Sky for marketing in Delhi

    ‘TOI’ ties up with Tata Sky for marketing in Delhi

    NEW DELHI: While the long awaited JV between Hindustan Times and Times of India may not have surprised anyone, another marketing exercise by TOI could: it is a so-far unannounced tie-up between TOI and Tata Sky for the marketing of its DTH service in Delhi-NCR.

    The deal is that Tata Sky is going to sell and collect the monthly subscription fees from their customers through the circulation department of TOI, now termed as Report and Market Development, or RMD department.

    Sources in TOI refused to comment. But while it is being said that a deal was signed earlier this month, Tata Sky CEO Vikram Kaushik told indiantelevision.com: “There is a lot of discussion with not just TOI but beyond that also, but nothing has been finalised as yet.”

    Tata Sky has been running a business module so far that involves selling its dishes and STBs through shops selling mobile phones and electronics equipment, especially TV sets. But that does not seem enough.

    They receive a large volume of orders and requests over the telephones which operate through BPOs. “If they have to land their own sellers to service all the new demands, it will be hugely costly and eat into their slender margins of selling boxes, especially due to the competition,” a source told indiantelevision.com, adding that each box is a one-time sale only.

    Which is why, Tata Sky, these sources reveal, has said that TOI’s newspaper vendors can be used to get feedback from those who called. The plan is that since TOI has a massive network of newspaper sellers, they could be coordinated through the paper’s RMD people. “The callers’ addresses are going to be passed on to the vendors who would make actual contact with the interested persons, thus saving Tata Sky the effort, time and cost.

    Similarly, Tata Sky has reportedly told the paper’s bosses that it alone has 200,000 DTH homes in the entire Delhi-NCR region, a lot of them being in the group housing societies in outlying areas of the NCR, like Gurgaon, Rohini, Ghaziabad and so forth.

    Tata Sky has proposed that the vendors also be used to collect the monthly charges for the card, which is a prepaid one.

    “They wanted to avoid the ‘cablewallah’ experience, where the cable operator’s grounds-man comes for the monthly rental and is sent back to come on another day. In any case, just as in the case of first-contact before a person buys a Tata Sky set, for collecting the monthly charges as well, the same inexpensive network of unskilled newspaper vending staff could be used.

    In fact, Tata Sky has convinced TOI that even if a fraction of the total monthly charge for each card is retained by TOI as collection fee, that is a substantial amount per month with Tata Sky having 200,000 users and the number growing. The system would be smooth and make business sense to both the paper and the DTH operator.

    It is not clear that this system would be tried in the other cities where TOI is read. It is believed that even in places where there is no TOI edition, but the company has bought other local papers, this system could be tried later.

  • Tata Sky upping subscription rate to Rs 300

    Tata Sky upping subscription rate to Rs 300

    MUMBAI: Tata Sky is increasing the monthly subscription rate of its direct-to-home (DTH) service to Rs 300, sources in the industry say. The revised rate, up from Rs 200, is likely to come into effect from 1 December.

    Tata Sky, however, has decided not to offer “tiered” channel packages at this stage of the DTH market. “Bundling channels and fixing different rates is confusing to the consumers. The mobile telephony market has shown that to everybody in this country. Tata Sky will continue to offer a single package unlike its competitor Dish TV,” sources add.

    When contacted for a comment on the developments,Tata Sky CEO Vikram Kaushik remained noncommital.

    Tata Sky offers 102 channels (including Star, Sony, Zee, Discovery, Cartoon Network, Disney, ESPN Star Sports and National Geographic) and six interactive services (Actve Khabar, Actve Newsroom, Actve Star News, Actve Games, Actve Sports and an on-screen guide).

    Tata Sky had stuck to the introductory offer price of Rs 200 even after Zee Turner’s 32 channels had hopped on to the DTH platform in late September. As the interim pricing of these group of channels (fixed by The Telecom Disputes Settlement and Appellate Tribunal till the dispute gets resolved) was Rs 75, a rate revision was in the pipeline. But the debate was whether Tata Sky would subsidise the content cost to the subscribers in the wake of CAS (conditional access system) being introduced on 1 January with a la carte choice of channels that would pull down cable TV rates.

    Tata Sky claims to have a subscriber base of 250,000 and says it is on target to achieve one million within a year of operations. The southern region continues to be a weak spot with the Sun group of channels yet to join the platform. Tata Sky has moved the TDSAT, hoping to get a positive verdict which would ensure the supply of the channels from the Sun stable.

    The Tata Sky set-top box (supplied by News Corp owned NDS), hardware and installation cost has been priced at Rs 3,999 (inclusive of taxes) with a full service warranty for one year.

  • Non-supply of channels: Tata Sky moves TDSAT against Sun TV

    Non-supply of channels: Tata Sky moves TDSAT against Sun TV

    MUMBAI: Tata Sky has moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the south Indian media major Sun TV Group’s reluctance to make available channels to its direct-to-home platform.

    The petition, filed today before the tribunal, alleges that the Sun TV Group has refused to supply its bouquet of channels to the DTH player. The case is scheduled for the first hearing tomorrow (15 November).

    Tata Sky approached the disputes forum after repeated requests to provide the signals of the channels of Sun’s bouquet of channels on “non-discriminatory terms” proved futile.

    Tata Sky has sought an appropriate direction in the matter from TDSAT, alleging that Sun TV has quoted unreasonable terms for supplying its signals.

    When contacted by Indiantelevision.com, Tata Sky managing director and CEO Vikram Kaushik today refrained from commenting on the development.

    Earlier speaking to Indiantelevision.com, Kaushik mentioned, “We are in talks with Sun TV, the most popular network in the southern states, but no commercial agreement is expected soon. We gave them a proposal and are in negotiations with them. But a deal is still far away.”

    A point of note is that Tata-Sky is simultaneously also battling for Zee-Turner channels. Although the tribunal has directed Zee Turner Ltd, distributors of Zee and other channels, to provide its signals to Tata Sky, the issues of pricing, capacity and other related issues have yet to be sorted out.

    According to the norms laid down by the Telecom Regulatory Authority of India (TRAI), all content should be made available to all delivery platforms on a nondiscriminatory basis.

    Interestingly, Sun TV promoter Kalanithi Maran has set forth plans to enter the DTH space through the still to launch commercially Sun Direct TV. He runs a string of successful channels, which include SunTV, GeminiTV, SuryaTV, UdayaTV, KTV, TejaTV, UsheTV, KiranTV, AdithyaTV, Sun News, KiranTV, GeminiTV, TejaTV, Teja News, Udaya2 and Udaya News.

  • BBC World is available on Tata Sky

    BBC World is available on Tata Sky

    MUMBAI: BBC World is now available on DTH service provider Tata Sky.

    BBC World regional director distribution and business development, Europe, Middle-East & South Asia Gerry Ritchie says, “We are very excited about our new association with Tata Sky. At a time, when India is witnessing rapid growth and change in the television and entertainment industry, Tata Sky provides us with an ideal platform to reach our target viewer with an interest in international news and events. This new agreement with Tata Sky will introduce BBC World to new viewers and increase the channel’s audience reach.”

    Tata Sky MD and CEO Vikram Kaushik said, “It is our endeavour to provide Indian viewers with a world-class satellite television service, offering the best in home entertainment. Since the launch of our service in August, we have continuously expanded our offering to include India’s most popular television channels and a host of exciting, interactive services.

    “The availability of BBC World on our platform reiterates our commitment to provide our subscribers with access to top-of-the-line content, in this case, the best of international news.”

  • Harris Broadcast Communications to provide end-to-end broadcast system to Tata Sky

    Harris Broadcast Communications to provide end-to-end broadcast system to Tata Sky

    MUMBAI:The battle for supremacy between Dish TV and Tata Sky has gone up by one more level with Harris collaborating with Tata Sky Ltd., to deliver its satellite television service via an end-to-end system that converts, processes, synchronizes and distributes digital program content.

    Tata Sky is the satellite television service for the Tata Group and Star Network in India.

    Designed to support 120 channels, Tata Sky’s facility uses Harris’ Integrator router for station routing, asserts an official release.

    “At Tata Sky, we continuously invest in state-of-the-art infrastructure to provide Indian audiences with a world-class satellite television service, offering unparalleled entertainment with pristine picture quality and sound,” said Tata Sky Ltd managing director and CEO Vikram Kaushik. “The Harris broadcast equipment will help us boost the quality of our digital transmission, enabling us to deliver top-of-the-line services to our customers.”

    According to the release, Tata Sky’s facility houses Harris NEXIO servers, for use in their test center; integrator router for station routing; a panacea router for clean switching; 6800+ and NEO modular interface products for video processing; the NEO MTG-3901 master timing generator system; the IconLogo modular branding solution; an IconStation master control graphics and channel presentation system; Videotek test and measurement products; the NEO SuiteView multi-source display processor; and the CCS Navigator software application and NUCLEUS user-configurable network control panel for control and monitoring.

    Harris Broadcast Communications division president Tim Thorsteinson said, “Tata Sky promises to revolutionise home entertainment in India, and we are extremely pleased to work with them in this venture.”