After Zee Entertainment, Sun TV slashes channel prices ahead of TRAI rules

After Zee Entertainment, it is the turn of Sun TV to slash its channel prices with effect from Sept 1 in anticipation of the implementation of new channel pricing rules by TRAI. 

The Telecom Regulatory Authority of India had, three months ago, announced that media companies and cable and DTH companies will no longer be allowed to push unnecessary channels down consumers’ throats by pricing individual channels at high rates.

At present, most DTH operators price individual channels at very high rates to discourage people from buying channels one-by-one and to force them to buy packs or bouquets.

When a consumer buys a pack, the DTH operator can make money in two ways: First, it gets a subscription free from the consumer, and secondly, it gets money from the channel owner as well for having included the channel in the pack.

However, if most people start buying channels one-by-one, then the second source of revenue — called carriage fees — will become irrelevant.

For broadcasters, this will mean the end of their ability to push their less-popular channels to consumers by bundling them with popular channels.

Under the new TRAI rules, the sum of the individual prices of channels included in a package cannot be more than 17.65% higher than the price of the overall pack.

In other words, if the total cost of a pack consisting of 10 channels is Rs 85, then the sum of the prices of the 10 individual channels cannot be more than Rs 100. At present, it is likely to range from Rs 300-400.

Zee Entertainment has already tweaked the prices of its individual channels to conform to the new rule, and now Sun TV — which operates around 38 channels — has also done so by bringing down individual prices.

With effect from September, it has reduced the maximum retail price of Sun TV HD to 19 per month per connection from Rs 40 at present. With this, the price of standard definition version of Sun TV and HD version of the same channel has become the same.

Similarly, it has reduced the price of KTV HD and Gemini TV HD to Rs 19 from Rs 40, while the price of newly launched Surya HD has been reduced to Rs 15 from Rs 20.

Even as Zee and Sun — which have both channels and DTH businesses — seemed to have welcomed the news, Star India — which has only channels and no DTH — and Airtel and Tata Sky — which have only DTH and no channels — have challenged the new rules in court.

Resource : https://ultra.news/t-t/31472/zee-entertainment-sun-tv-slashes-channel-prices-ahead-trai-rules

Taxes on entertainment, cable, DTH to come down under GST

The Dollar Business Bureau

The government said on Tuesday that taxes on entertainment, Direct-To-Home (DTH)  and cable services would come down in the new Goods and Services Tax (GST) as 'entertainment tax' that is imposed by the states has been included in the GST regime.

The services offered through admission to cinematography films or entertainment events in cinema halls will be imposed with a rate of 28% under GST effective from July 1, the Finance Ministry said in a statement.

Presently, the states levy entertainment tax of up to 100% with regard to exhibition of films in cinema halls/theatres.

The entertainment tax has now been subsumed under the GST, and therefore only the taxes imposed by a municipality or panchayat on amusements and entertainments will stay.

“Entertainment services shall suffer a lower tax incidence under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services,” the statement said.

The GST Council has decided a tax rate of 18% on cable TV and DTH services.

Presently, the states impose entertainment tax on these services in the range of 10-30% over and above the 15% service tax.

With regards to theatre, circus, classical dance together with folk dance and drama, a rate of 18% will be levied under GST.

Presently, the states levy entertainment tax on these services, the statement said.

“Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods and inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs,” it added.

While the GST is a value-added tax, the entertainment tax currently imposed by the states is similar to a turnover tax, it said.

The GST Council, last week, had finalised the tax rates of more than 1,200 goods and 500 services in a four slab rate structure of 5%, 12%, 18%, and 28% under the new GST regime.

Resource : https://www.thedollarbusiness.com/news/taxes-on-entertainment-cable-dth-to-come-down-under-gst/50374

Tata Sky to add five more HD channels to take total to 86

Tata Sky, the Indian DTH operator with the highest amount of spectrum and channels, will add five more HD channels to take the total high-definition offerings on the platform to 86.

The new channels being added tomorrow are DSports, MTV HD+, Surya (Malayalam), Udaya (Kannada) and Gemini Movies (Telugu).

With 86 HD channels, the operator has further solidified its position as the largest provider of high-definition content in India.

In comparison, most DTH operators provide only 45-65 HD channels, while cable players provide between 30-50 such channels.

However, due to the paucity of high-definition content, Tata Sky has been forced to offer so-called ‘plus 1’ channels, which are essentially one-hour delayed feed of existing offerings.

As such, it provides +1 services for ‘Star Gold’, ‘Zee Cinema’ and so on.

SPECTRUM BONANZA

Tata Sky has found itself in a happy position of being faced with a glut of spectrum after one of ISRO’s satellites — INSAT-4A — failed to ‘die’ on time.

Tata Sky was using 432 MHz of spectrum on INSAT-4A to deliver content to the Indian subcontinent and was behind players like Videocon D2h, which has 540 MHz, and Dish TV, which had 648 MHz.

INSAT-4A was supposed to reach ‘end of life’ in 2017, and to replace it, ISRO sent GSAT-10 to the same orbital location with 432 MHz of capacity.

As luck would have it, both satellites are working simultaneously. However, because the older satellite can die any time, ISRO cannot sell the capacity on its new satellite to a new player. For the same reason, it cannot sell its capacity on the older satellite either, to any new player.

As a result, Tata Sky has been permitted to use both satellites at the same time, and now has about 828 MHz of spectrum at its disposal.

This is almost double of what most operators in India have.

The only serious competitor is Dish TV, which has recently increased its capacity to 828 MHz. However, since Dish uses the older and less-efficient MPEG-2 standard, 828 MHz is equivalent to around 600 MHz only.

Airtel Digital too has increased its spectrum recently to 396 MHz to 504 MHz and can take it even higher, depending on its need.

Resource : https://ultra.news/t-t/31436/tata-sky-add-five-hd-channels-take-total-86

Entertainment, cable, DTH to attract lower taxes under GST

NEW DELHI: Taxation on entertainment, cable and DTH services shall come down under the Goods and Services Tax regime as the 'entertainment tax' levied by states has been subsumed in the GST, the government said today.

The Finance Ministry in a statement said services by way of admission to entertainment events or cinematography films in cinema theatres will attract 28 per cent GST with effect from July 1.



Currently, states impose entertainment tax of up to 100 per cent in respect of exhibition of cinematography films in theatres/cinema halls.

Under GST, the entertainment tax has been subsumed, and hence only the taxes levied by a panchayat or municipality on entertainments and amusements will continue.


Thus, entertainment services shall suffer a lower tax incidence under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services," the ministry said.

The GST Council has finalised 18 per cent tax rate on cable TV and Direct-To-Home (DTH) services.

Resource :http://economictimes.indiatimes.com/news/economy/finance/entertainment-cable-dth-to-attract-lower-taxes-under-gst/articleshow/58802698.cms

Zee unveils national Hindi news channel

India’s Zee Media has launched Zee Hindustan, a national channel covering news from a range of states in addition to the capital and metropolitan cities.


“In the present scenario, where other news channels from all the languages are busy discussing the national capital priorities, there will be one channel which will discuss the state’s news affairs which can influence the centre,” explained Jagdeesh Chandra (pictured), executive director & CEO Regional Channels, ZMCL. “Why do States like Rajasthan, Madhya Pradesh, Karnataka, Jharkhand and Assam not set Agendas in Delhi? The answer to these questions lie in Zee Hindustan, because we believe that states make the Nation.”

“This picture will be the main focus of our special programme 'राजधानी से राजधानी तक', which will be aired seven days a week at 7pm. Not just eight stories, but our special programme will focus on 80 stories making it our agenda.”

Among the programming, Zee Hindustan will cover news from each state’s government, asking what each state’s chief minister has done for the people and what important announcements have been made. “Now, Indian audience will not wait for the end of the year to assess the performance of their chief minister, Zeeहिंदुस्तान will work each day to scrutinise the government’s work,” a statement said.

The channel is now available on direct-to-home (DTH) platforms Tata Sky, Dish TV, Airtel DTH and DD Direct.Resource :https://www.rapidtvnews.com/2017052347321/zee-unveils-national-hindi-news-channel.html#axzz4hu6j822a

ABS, The Solar Group to Launch New DTH Service in the Philippines

Asia Broadcast Satellite (ABS) and The Solar Group, one of the largest content providers in the Philippines, have formed a joint venture partnership to launch the first nationwide free-to-view Direct-to-Home (DTH) television services in the Philippines. The new service will be available on C-band via the ABS 6 satellite covering the Philippines.

Unlike most Ku-band DTH services, the C-band service will not be susceptible to rain degradation, according to ABS. The free-to-view platform is scheduled to launch in Q3 2017 and will host a bouquet of 40 to 50 high quality domestic and international channels. Content will include different genres of programming from general entertainment, music, movies, sports, lifestyle, infotainment, children’s and local content. Consumers in the Philippines will need to make a one-time purchase of a DTH kit, which includes a small parabolic antenna and decoder Set-Top Box (STB), to be able to enjoy programming with no monthly fees.

For the first time in the Philippines, everyone will be able to afford high quality television programming for free, including consumers living in the rural areas and outlying islands,” said ABS Chief Executive Officer (CEO) Tom Choi.
Resource :http://www.satellitetoday.com/broadcasting/2017/05/22/abs-solar-group-launch-new-dth-service-philippines/

Private DTH operators least perturbed by DD Free Dish's expansion

he 35th e-auction of DD Free Dish, the central government’s Free-To-Air Direct to Home (DTH) platform, is slated to take place later this week on May 25. The auction provides television broadcasters with the opportunity of grabbing vacant non-news and current affairs DTH slots on DD Free Dish at a reserve price of Rs 8 crore. However, leading private DTH operators, Dish TV and Tata Sky, are least perturbed by the expansion of DD Free Dish.



Speaking to exchange4media, Dish TV’s Jawahar Goel described DD Free Dish as a “stepping stone” for pay TV market. Instead of recognizing the government’s DTH platform as a competitor, the veteran business executive found it to be complimentary. “Those who want to watch free TV, they are on DD Free Dish while others who can pay opt for private DTH players,” said Goel, Chairman & Managing Director, Dish TV

On the other hand, Tata Sky, a close competitor of Dish TV, was reluctant to comment on the relevance of DD Free Dish. Harit Nagpal told exchange4media that it wasn’t appropriate to compare DD Free Dish with private operators. He reasoned that the former is “free” and the purpose of its existence is “very different” as compared to them.


“They are running a free food service. We are a restaurant,” said Nagpal, Managing Director & CEO, Tata Sky, as he invoked the analogy of a langar (food served to all visitors in a Gurdwara for free) viz-a-viz DD Free Dish. Powered by satellites, DTH platforms eliminate the role of middlemen or local cable operators through the use of dish antennas installed in homes. The process is further aided by set-top-boxes. Established during the fag end of 2004, DD Free Dish has grown from a small cluster of 33 channels to a large family of 80 television and 32 radio channels. The government’s plan is to eventually increase the DTH platform’s capacity to over 250 channels over the next two years.




The previous auction of slots on DD Free Dish held on May 9 saw successful bidding from 9X Jalwa, Sony Wah and Zee Anmol Cinema. Along with a participation amount of Rs 2.80 crore, broadcasters have to submit a non-refundable processing fee of Rs 25,000 before 12 noon on May 25 to be a part of the 35th e-auction. C1 India Private Limited will be conducting the auction on behalf of Prasar Bharati

Resource : http://www.exchange4media.com/tv/private-dth-operators-least-perturbed-by-dd-free-dishs-expansion_68891.html

Bharti Airtel bundles DTH with broadband in new myHome pack

MUMBAI:
 To take on Reliance Jio’s broadband service JioFibre, Bharti Airtel has unveiled a new promotional offer that bundles its broadband and direct-to-home (DTH) services in a package. The new promotional offer ‘myHome’ gives its users 5GB of additional data every month for each postpaid connection and digital TV service that users link to their Airtel broadband connection.

The offer is currently active on the My Airtel app and can be grabbed by all users having a broadband connection and a postpaid or an Airtel Digital TV DTH service. The myHome offer is available for individual users who have subscribed to Airtel’s services before 1 July 2016.

 The offer comes with a cap on the number of connections that can be bundled by a consumer. A user can bundle up to 25 postpaid connections and 25 DTH connections with the broadband service, which essentially amounts to 250GB of additional broadband data per month.
The offer comes in the wake of Reliance Jio’s announcement that it is testing its fibrenet broadband service JioFibre in five major cities—Delhi, Mumbai, Jamnagar, Pune and Chennai. The official launch date for the service is yet to be announced.
Resource : http://www.televisionpost.com/dth/bharti-airtel-bundles-dth-with-broadband-in-new-myhome-pack/

Dish TV and Videocon d2h merger gets CCI approval

The new company resulting from the DishTV-Videocond2h merger will be called Dish TV Videocon Ltd, in which Dish TV will own 55% and Videocon 45% stake
Jawahar Goel, MD of Dish TV, will lead Dish TV Videocon Ltd as chairman and managing director following the merger.

New Delhi: The Competition Commission of India (CCI) on Wednesday approved the merger between Zee Entertainment Enterprises Ltd’s DTH platform Dish TV and Videocon d2h, the direct-to-home television arm of Videocon Industries Ltd.

The companies had announced their merger in November 2016. The new company will be called Dish TV Videocon Ltd. Dish TV will own 55% and Videocon 45% stake in the new company.

In a statement released on Wednesday, Dish TV said that the company has already received the approval from the Securities and Exchange Board of India (Sebi), NSE and BSE Ltd for the proposed merger.

Dish TV has also called a meeting of equity shareholders on 12 May 2017 to seek their approval for the merger, according to the statement.

Earlier this year, CCI had asked the Telecom Regulatory Authority of India (Trai) to weigh in on whether the merger of DTH firms Dish TV India Ltd and Videocon d2h Ltd will violate any anti-trust laws, Mint had reported on 9 March.

The proposed transaction is expected to create a leading cable and satellite distribution platform in India which will serve 27.6 million customers (data as of 30 September) and will have a 45% market share. Jawahar Goel, managing director of Dish TV, will lead the combined entity as chairman and managing director.

Dish TV is currently the market leader with a 25% share, followed by Tata Sky with a 23% market share, according to data from Trai. Videocon d2h and Bharti Telemedia have 20% market share each.

At present, India has seven DTH firms including state-owned broadcaster Doordarshan’s DTH platform for free-to-air channels called DD Free Dish. According to a 2013 report on the Indian DTH market by Hong Kong-based research firm Media Partners Asia, revenues in the DTH industry are expected to touch $3.9 billion by 2017 and $5.3 billion by 2020, up from $1.5 billion in 2012.

Resource : http://www.livemint.com/Companies/FULbZN0PRVxgPcBVeI0nEN/Dish-TV-and-Videocond2h-merger-gets-CCI-approval.html

Zee Entertainment slashes channel prices ahead of TRAI regulation

Zee Entertainment, one of the four big broadcasting groups of India, has become the first player to bring its channel prices in line with an upcoming regulation issued by the Telecom Regulatory Authority of India.

Zee’s new tariff card prices its channels a fraction of what they are being sold for in the market at present.

For example, under the new tariff, the maximum retail price of Zee Studio HD — the high definition Hollywood movie channel from the group — has been fixed at Rs 7 per month.

In comparison, the present nprice being charged by Airtel Digital DTH service for the channel is Rs 51 per month. Tata Sky charges Rs 50 per month, while Videocon D2H charges Rs 23 per month.

The regulator had, in early March, unveiled a comprehensive set of rules aimed at preventing companies from forcing customers to buy unwanted channels.

Broadly, the rules prevent companies — both cable and DTH players as well as broadcasters like Zee and Star India — from forcing customers to buy unwanted channels by tying them together with channels in heavy demand.

It was seven years ago that the regulator first targeted the practice of bundling channels together. In 2010, it issued its first order on the subject, forcing all content distributors to offer their channels on an ‘a la carte’ or individual basis.

It said such a move would help customers pick and choose the ones they wanted to see.

However, cable, DTH and broadcasting companies got over the regulation by hiking the price of individual channels to unaffordable levels, forcing users to subscribe to bouquets.

Most HD channels, for example, are sold at Rs 50 each, and a customer who wants to see subscribe to 50 of them will have to pay around Rs 2,500 per month.

However, if the customer was willing to watch the channels that the DTH operator or the broadcaster wanted him to watch, he could get 50 HD channels for just around Rs 200 per month.

TRAI addressed this problem by unveiling a new set of rules in March that linked the price of a bouquet of channels to their individual prices. It said a broadcaster can only offer a maximum of 15% discount under the bouquet system over the individual channel price.

So, if the broadcaster wanted to sell a bouquet of 50 channels at Rs 200, then the sum of their individual prices could not be more than Rs 235.

VISIBLE IMPACT

Though others are dragging their heels, Zee Entertainment seems to have decided to get ready for the impending change.

The company has unveiled affordable rates for all its channels, including the nine High-Definition offerings that it has.

The highest price for an individual channel is for the newly launched Zee Marathi HD, which will retail for Rs 18 per subscriber per month. The non-HD version of the channel has been priced at Rs 14.

The second costliest is Zee TV HD at Rs 16, followed by Zee Bangla HD at Rs 14. The standard versions of these channels are priced at Rs 12 and 10 per month respectively.

No DTH or cable operator will be able to charge a higher rate for the channel, though they could charge less, or even zero.

LITIGATION

The move has irked the broadcasting industry, three companies, Bharti Airtel, Tata Sky and Star India, have approached various High Courts seeking a stay on the new rules.

The three cases of litigation related to the new rules are being fought in the Delhi and Madras High Courts.

While Star India has filed its petition in the Madras High Court, Tata Sky and Airtel Digital have approached the Delhi High Court.

Star India wanted a stay on the implementation of the order, which is scheduled to come into effect in early September, but the High Court refused to grant such a stay.

The broadcaster then approached the Supreme Court, which allowed a stay, but instructed the Madras High Court to hear the case on a day-to-day basis and come to a verdict by July 10.

It is believed that the losing party will then appeal to the Supreme Court, which will still have time to decide the appeal by July end, allowing for the implementation of the order in September.

Meanwhile, the Tata Sky and Airtel Digital litigations will be taken up by the Delhi High Court for the first time tomorrow.

The companies argue that the government does not have the right to curtail their right to price their offerings. However, the TRAI has argued that it has the right to bring in pricing rules to ensure a level playing field for bigger companies — such as Star India — and smaller broadcasters such as Balaji.

Under the current system, it has argued, companies that operated dozens of channels enjoy an unfair advantage in pushing their channels via bundling.

Resource : https://ultra.news/s-e/31251/zee-entertainment-slashes-channel-prices-ahead-trai-regulation