DTH operators are likely to add 8-9 million subscribers per year

Over the next three years, direct-to-home operators are likely to grow their subscriber base by taking 8-9 million subscription per year.

As per the PTI report, two listed operators Dish TV and Videocon d2h will benefit the most from India's digital conversions.

The leading news agency quoted a Deutsche Bank report, which stated that "A 70 million analogue subscribers' opportunity will unfold over the next few years as voluntary conversions continue."

"Regardless of the digitization deadline dates, DTH (Direct-to-home) companies will probably keep adding 8-9 million subscribers a year over the next three years," according to a Deutsche Bank report.

The government has declared phase-wise deadline to complete the digitization process. For phases 1 and 2, which covers the metros and 38 large cities (cities with over over million population) are already over. While the Phase 3 deadline (all urban areas) is December 31, 2015 and the Phase 4 deadline (the rest of India) is December 31, 2016.

According to the report, "Looking at the progress of cable companies towards digitization, it looks likely that the deadline will be extended. We do not factor in any uptick in subscriber addition till FY17 on account of digitization," the report said.

The report added that through internal cash generation, Dish TV and Videocon d2h can add 2.5 million and 1.8 million subscribers, respectively. "According to our estimates, Dish TV will generate free cash flow of Rs 360 crore in FY17, while Videocon d2h will turn free cash flow positive by FY17," it said

Source: http://www.in.techradar.com
 

DTH Operators to Add 8-9 Million Subscribers a Year: Report

Direct-to-home operators are likely to add 8-9 million subscribers per annum over the next three years as two listed operators, Dish TV and Videocon d2h, stand to gain big from digital conversions in the country."A 70 million analogue subscribers' opportunity will unfold over the next few years as voluntary conversions continue. Regardless of the digitisation deadline dates, DTH (Direct-to-home) companies will probably keep adding 8-9 million subscribers a year over the next three years," says a Deutsche Bank report.

The government has set a timeline to complete digitisation in four phases. Phases 1 and 2 covering the metros and 38 large cities (cities with over over million population) are already over.

The Phase 3 deadline (all urban areas) is December 31, 2015 and the Phase 4 deadline (the rest of India) is December 31, 2016."Looking at the progress of cable companies towards digitisation, it looks likely that the deadline will be extended. We do not factor in any uptick in subscriber addition till FY17 on account of digitisation," the report said.

Out of the 270 million households, 170 million are TV households. Within these 170 million, 40 million are DTH households, 30 million are digital cable households, 70 million are analogue subscribers and 30 million are terrestrial households.

The report observed that broadcasters prefer DTH companies as they get a higher share of revenue from them compared to multi-system operators (MSOs).

"Since broadcasters get a higher share of revenue from DTH players, they favour higher DTH penetration. Broadcasters have entered into multi-year fixed cost deals with DTH operators. These are lump-sum cost deals, with single-digit annual inflation built in," it said.

However, it noted that broadcasters like Zee Entertainment and Star TV are pushing MSOs for higher payments."This cost push for cable will provide pricing headroom for DTH. Historically, the ability of DTH operators to increase prices has been capped by cable prices," it said.Of the two listed DTH operators Dish TV and Videocon d2h, it said they can add 2.5 million and 1.8 million subscribers, respectively, through internal cash generation.

"According to our estimates, Dish TV will generate free cash flow of Rs. 360 crore in FY17, while Videocon d2h will turn free cash flow positive by FY17," it said.

Source:    http://gadgets.ndtv.com/

STAR India goes premium with STAR Movies Select HD

STAR India, the broadcast network that runs sports and entertainment channels in India, will launch its third English movie channel on Thursday. An exclusively high-definition (HD) channel, STAR Movies Select, will showcase movies that are beyond the mass-appealing and action flicks that are aired on its existing offerings - STAR Movies and STAR Movies Action.

"The insights we got from our studies was that there is a discerning audience that wants to watch story-led, non-action oriented movies," says Kevin Vaz, business head-English cluster at STAR India. "They value the content that is off the beaten track and value the experience that HD offers in terms of visual and sound quality. With close to 4.5 million HD households in the country, there is a market to capture."

The channel will launch across direct-to-home and digital cable platforms and will be available wherever STAR Movies HD is. However, given that it is solely an HD offering, DTH players will play a more significant role in the distribution of the channel. All leading DTH players have put their focus on HD subscriptions and have been getting good traction in this segment over the past few quarters. Industry estimates peg the reach of English movie channels at 70 million a month (unique viewers) and 40 million a week.

The English entertainment space has seen some action in the past month, with this launch being the third announcement of its kind. Earlier last week, Time Network relaunched its HD English movies channel Movies Now Plus as MN+ with a new packaging and refreshed movie line-up. That was followed by the announcement of the new English entertainment offering from Viacom18 called Colors Infinity. While the latter is more focussed on the television shows space and will only air documentaries in terms of movies, MN+ is positioned as a premium movie channel with standard definition and HD feeds.

Vaz, however, disagrees that there is a clutter in this space or that STAR Movies Select will be confused with other brands. "For one thing, when we say fresh movies, we mean never-before-seen on Indian television. We have an output deals with three of the leading studios in Hollywood, which among them account for 50 to 60 per cent of the top rated films every year. With 21st Century Fox, we have an exclusive output deal, which means that the films that come to us from there, will stay only with us. With NBC Universal and Disney, we have first output deals, which means that the movies will first come to us, and then other networks can bid for them. Also, we intend to get movies that have not got a theatrical release in India for any reason. It is with this preparation we have gone with the proposition of '365 stories in 365 days'. The name itself indicate

s that we have the most premium and quality movies in the industry." The channel will launch with the promise that there will be one premiere every night at 9 pm, which is the prime-time slot in the genre. Apart from this, there will be movie festivals across genres such as murder mysteries, true stories, biopics and book adaptations, among others. All in all, the channel will have 50 premieres in its first year itself.

The packaging of the channel is "clean and minimalistic", Vaz says but refuses to reveal further. He, however, does reveal the brands that have come on board as sponsors. Pernod Ricard has come on board as a channel partner and will be sponsoring the major festivals and premieres on the channel. Apart from this, other brands to have already come on board include BMW, Flipkart, Hindware, Jockey, Bluestone and Yamaha, among others. The channel will have 12 minutes of advertising per clock hour, in keeping with the regulations set by the Telecom Regulatory Authority of India.

Source: http://www.business-standard.com

Hinduja to roll out digital TV distribution business in August

New Delhi: Having acquired government approvals for its Headend-In-The-Sky (HITS) business on 14 July, the Hinduja group on Wednesday said it will roll out its digital television distribution business in the middle of August under the brand name NXT DIGITAL. The new service will help cable operators in the country to make the transition from analogue to digital, offer specialized value-added-services, and also their local cable channels on the HITS platform.

“NXT Digital will strongly support the national mission to roll out Digital Addressable Systems (DAS) for broadcasting all over India,” said Tony D’Silva, managing director, Grant Investrade Ltd, a wholly-owned subsidiary of Hinduja Ventures Ltd. DAS, which makes it mandatory to access television signals via a set-top box, was notified by the government in 2011.

Armed with an investment of nearly $100 million in back-end technology and its teleport in Noida, the Hinduja HITS venture proposes to enrol a significant number of cable operators on this platform.
To be sure, since Headend-In-The-Sky—as the name suggests—is a satellite-based service, it will have its footprint across India and will be able to roll out its offerings anywhere in the country. However, in view of the deadline for DAS rollout, NXT Digital will focus on smaller towns to provide its digital services, D’Silva said.

The government passed the HITS guidelines in 2009. HITS facilitates digitally compressed programming via satellite using a single headend. The television channels are downlinked by the HITS operator at a central facility and then again uploaded by it to a satellite after encryption. These signals are then downlinked by the local cable operators and delivered to consumer homes via cable.
D’Silva said that NXT will initially offer 500 channels to its operators. “This number could go up to 1,000 channels soon,” he said, adding that the company’s set-top boxes will come with a recording facility.

Commenting on the number of homes that HITS expects to reach after rolling out its services next month, D’Silva said that in phase III of digitization an estimated 50 million homes need to be digitized. “At a conservative estimate, we should get 15 to 20% of that number,” he said.
The Zee Group attempted to get into the HITS business twice and failed, and the existing Jain HITS platform in the capital has not made much headway.

“Hinduja HITS will be competing with a number of DTH platforms as well as MSOs (Multi system operators such as Siti Cable and Digicable, among others). The biggest killer for them will be content cost for which they will really have to negotiate hard with the broadcasters,” said an executive at a DTH company who did not want to be named.

The new service provider will also have to suffer heavy taxation like DTH companies (they pay licence fee and service tax to the central government and entertainment taxes to the states). “We have managed to bring down our costs gradually over the years. HITS will have to go through the same cycle,” the person said.

Mihir Shah, vice-president at

 Media Partner Asia consulting and information services firm, does not agree. He said that the structure of the industry has changed since Zee first tried to launch HITS.
“There was no DAS then and digitization was not mandatory. This time Hinduja’s HITS has a huge opportunity to convert analogue homes into digital. In phases three and four, our estimates suggest there would be 75 million analogue cable homes that need to be digitized.”

He said that HITS combines the best of both worlds—DTH and cable. “The HITS architecture has some technical advantages over DTH. The platform can effectively compete with DTH on channel carrying capacity as it can avail of satellite bandwidth across multiple orbital locations,” Shah said.
A spokesman for DTH operator Tata Sky did not respond to phone calls or text messages seeking comment.

Source: http://www.livemint.com

Zee Cinema to show different ads in different states using geo-targeting

Zee Cinema will use technology from Amagi Media Labs to geo-target advertisements, or show different ads in different areas.
 

“Zee Cinema will now give advertisers targeted access to over 158,600,000 viewers and coverage across 16 markets where Amagi has the capability to deliver geo-targeted content,” Amagi said.

The 16 markets are Delhi-NCR, UP, Punjab, Rajasthan, Gujarat, Bihar, Jharkhand, West Bengal, North-east, J&K, Mumbai, Rest of Maharashtra, MPCG, Bangalore, Hyderabad, and All India- DTH.

Amagi already has Zee News, Zee TV, Zee Marathi, Zee Kannada and Zee Bangla (for Bangladesh) on its geotargeting network.

“Advertisers can use Amagi’s platform to market region-specific products, communicate regional offers and promotions and to increase share of voice in target markets. As one of the country’s leading media houses, Zee is well placed to amplify the effectiveness of this offering and the partnership with Amagi is reflective of the company’s commitment to driving incremental value for advertisers,” Amagi said.

Ashish Sehgal, Chief Sales Officer, Zee Entertainment Enterprise Ltd. said, “Geo-targeted TV ads will add greater direction and specificity to media planning, especially in the Indian market. Our partnership with Amagi will significantly boost our efforts to offer greater ROI to advertisers.”

Amagi co-founder, KA Srinivasan said: “We feel there is tremendous scope for the growth of geo-targeted TV ads in a country as varied as India. It is our endeavour to be India’s central advertising platform that offers advertisers a reliable and cost-effective solution to TV advertising. The addition of Zee Cinema to our bouquet of channels is a step forward in this direction.”

Currently more than 30 of the country’s top 50 advertisers leverage Amagi’s geo-targeting platform to target their ads to specific audiences.

Over the last few years, Amagi says, it has seen revenue grow at a CAGR of 300%. Amagi works with over 2,500 advertisers and its client list include some of the country’s most well-known brands including P&G, HUL, Wipro, ITC, Dabur and Britannia.

 Source:  RTN.ASIA

Now, hawkers set up permanent stalls

KOLKATA: A fresh wave of encroachment has hit the city's pavements. Wannabe hawkers have occupied vantage spots with an eye on a long-term right to do business on Kolkata's streets.

The surge in the number of hawkers has been triggered by chief minister Mamata Banerjee's pre-civic poll promise to register hawkers and hand out ID cards, which will not only make their trade legitimate but also entitle them to several social benefits.

Though fresh encroachment is happening across the city, it is most pronounced in south Kolkata with new faces laying claim to portions of the pavement in Tollygunge, Southern Avenue and Sarat Bose Road.

At Tollygunge, proper shops have come up on the pavement before the Metro station. They are not makeshift bamboo and plastic sheet structures, but wood and metal stalls that can be locked after business hours. While some of the stalls have already been occupied, some are waiting to open.

"Earlier, the stalls here were not contiguous. There was a lot of space between the stalls. Since April, the empty spaces have been occupied. While most of the space has been handed over to new hawkers, there are also some old hawkers who spotted an opportunity to expand their business and have taken up additional space," said a hawker who has recently set up a pan shop near the Metro station main gate.

Food is the dominant business among hawkers in this stretch, with all types of snacks on offer, from fruit juice to noodles, momo, pasta and various types of fries. There are several other businesses that are flourishing, including stationary shops, which sell mobile and DTH recharge coupons.

"It is the INTTUC union that decided to set up 30 new stalls in this 50-metre stretch. I began doing business last week," said a fast food stall owner, who has another stall on the other side of the same pavement.

On Sarat Bose Road, as well as alleys off Rash Behari Avenue, pavement barber stalls appear to be the new in-thing. By way of furniture, they hook a small mirror on a wall or nail it to a tree trunk, set up a chair opposite it and start their business.

Most of these shops have mushroomed after KMC put up huge hoardings announcing a month-long registration drive to enlist all hawkers, irrespective of when they began their business. With the registration set to end on September 15, hordes of unemployed youths are occupying footpaths to get enlisted.

On Southern Avenue, the hawker encroachment is more subtle. Here, hawkers are eyeing prime spots around the Lake Kali temple. While there were stalls that sold flowers, sweets and puja paraphernalia, new stalls are stocking stationary goods. A couple of tea shops have also come up here.

Lake Kali temple authorities are apprehensive of being besieged by hawkers and have appealed for help to civic officials.

"KMC must act to restrain hawkers. The civic authority should demarcate hawking and no-hawking zones in the city to stop rampant all-round encroachment," an official from the temple said.

That is what Shaktiman Ghosh, leader of Hawker Sangram Committee — one of the biggest hawker unions in the state — points to as well. "The CM's initiative and the KMC's registration drive are illegal. According to the Supreme Court order, a town vending committee has to be formed that will decide on hawking zones and oversee the relocation of hawkers to the identified zones. Though we have been pressing for the setting up of the committee for past two years, the government and KMC have turned a deaf ear. Instead, they have announced registration to provide social security and that has led to a quantum jump in hawker count," he said.

Surveys conducted in 1996, 2010 and 2014 by Hawker Sangram Committee show a sharp rise in the last four years. The hawkers count increased by 1.05 lakh in 14 years, but since 2010, it has shot up to 3.50 lakh (a rise of 75,000 in four years). If this continues, there will be 5 lakh hawkers here by 2020.

While rising unemployment because of closure of factories and lack of job opportunities hahas forced many to take up hawking, the government's soft stand has encouraged the spurt.

The big surge started around four years ago, coinciding with the Trinamool Congress victory in KMC elections in 2010 and got a further fillip after the party swept to power in the assembly elections a year later.

Now with Mamata announcing social security measures, many fear even the few footpaths that remain now will be taken over by hawkers.

The CM's initiative and the KMC's registration drive are illegal. According to the Supreme Court order, a town vending committee has to be formed that will decide on hawking zones and oversee the relocation of hawkers to the identified zones. Though we have been pressing for the setting up of the committee for past two years, the government and KMC have turned a deaf ear

Shaktiman Ghosh | hawker sangram committee


Source: http://timesofindia.indiatimes.com

Digicable launches utility app for cable operators; consumers can pay for utilities

Cable distribution company Digicable has launched a utility service app called ‘Complete E-payment Solution’ for Kolkata, reports Indiantelevision. The company claims that it has tied up with banks, mobile, DTH and airline operators, Indian Railways and the Calcutta Electric Supply Corporation for these services. This app will initially only be available to local cable operators and will let them provide utility services to their consumers as well as provide a source of income through the service.

Digicable claims that customers will be able to make payments for their credit card bills, electricity, mobile bill, DTH recharge, mobile recharge, deposit cash in the bank account, book train, flight and movie tickets at a service charge through their cable operators. Post payments or transactions, a receipt will be sent to their registered mobile number for free.

The Mumbai headquartered Digicable offers digital cable and regular cable services through a set top box in partnership with local and international cable operators and providers. It also provides broadband service called Pacenet in 7 cities in India, along with which it provides Digicable exclusive channels like LOVE, Silk, Cross, Bollywood TV among others.

In 2008, the Mumbai based Pacenet ISP received an approval from the Foreign Exchange Promotion Board to divest 74 percent stake, and receive foreign investment to the tune of Rs. 17.336 crores (around $4 Million). Among the founders of Pacenet was former WWIL (Zee Group) MD Jagjit Kohli.

In January last year,  edutainment TV channel, Da Vinci Learning partnered with Airtel Digital TV, Siticable and Digicable to broadcast its content. Digicable would receive 12 months of branded block content from the channel.

Digicable was established in August 2007 by Cable TV business veteran Jagjit Singh Kohli, who was previously the managing director of Zee owned WWIL. Digicable had been set up in partnership with Yogesh Shah, with whom he had previously founded another cable TV company Win Cable, which was later sold to Hathway Cable and Datacom. Kohli had also established Incablenet for the Hindujas.

In 2010, Reliance Communications board had approved a proposal to acquire Digicable in an all-stock deal, and for the creation of Reliance Digicom, an entity which combined RCOMs DTH, IPTV and Retail broadband operations with those of Digicable, offering Digital TV, Broadband and interestingly, according to the company, ‘Voice’. The valuation of Digicable had not been disclosed at that time. This deal was called off in July 2011 after the I&B ministry restricted cross holdings in cable and DTH companies to 20%.

In June 2012, Den Networks, Hathway Cable & Datacom, Hinduja owned InCable and Zee Group promoted Wire & Wireless India (WWIL) had put in independent bids to merge with Digicable, as indicated by this Financial Express report.

Source:www.medianama.com

New DTH platform for Ukraine?

Ukraine may shortly see the launch of a new DTH platform operated by the company Datagroup.

Quoting Aleksandr Dachenko, a former CEO and now an MP, and Maxim Smelyanets, its current CEO, speaking at an event marking Datagroup’s 15th anniversary, Mediasat reports that such a service is very much on its agenda.

  

Dachenko said that as the Ukrainian market has few DTH providers, he is currently negotiating with a number of satellite operators on the establishment of a national DTH service.

He added that the results of the discussion should be announced in September.

Meanwhile, Smelyanets said that while the company may provide TV services in addition to its current internet offer, it would be premature to say anything more at this stage.

He added that all details will be made available this autumn.

Datagroup has worked with Eutelsat for a number of years and Apostolos Triantafyllou, the latter’s senior VP of sales, said that Datagroup would use the new satellite Eutelsat 9B at 9 degrees East not only for satellite communications services and the internet but also have the capacity to broadcast Ukrainian channels.

Although it is far from certain that Datagroup will launch a DTH platform, there is a general feeling that a new one, the operator of which is as yet unknown, may soon make its debut.

Ukraine has nevertheless proved to be something of a graveyard for DTH platforms, with up to four closing since 2010.

The most recent of these, says Mediasat, was Xtra TV in May, though Broadband TV News has not been able to confirm this and the service’s website is still up.

MTG-backed Viasat Ukraine remains operational.

Source:http://www.broadbandtvnews.com

A shortcut to broadband

A few days before the government launched its Digital India campaign, Bharti Enterprises, which owns Bharti Airtel, India’s largest telecom services company, announced that it had acquired a strategic minority stake in OneWeb, a global initiative aimed to provide low-cost internet. The other stakeholders include Qualcomm, Coca-Cola, Virgin and Airbus. Bharti Airtel is OneWeb’s preferred partner wherever it operates, which is essentially South Asia and Africa, though others too can use the service. OneWeb intends to put 648 low-orbit satellites in space between 2017 and 2019, which will be used by telecom companies like Bharti Airtel to provide a whole suite of services: 2G, 3G, LTE(long term evolution, a standard for wireless communication of high-speed data) and Wi-Fi. As phone calls through satellite phones involve a slight lag, it is safe to assume that Bharti Airtel will use OneWeb essentially to offer internet in the hinterland.

This is a clear indication that the forthcoming telecom battles will be fought over data. Reliance Jio, which hopes to enter the market by the end of the year, has big plans for the data market and has invested large sums of money to create the backbone for that. Other companies, too, are investing more and more resources to beef up their data capabilities. Currently, the telecom network in the country offers voice services almost everywhere, but internet access is patchy. The government had drawn up a plan to link all villages through a broadband network but it is hopelessly behind schedule. This is where OneWeb fits in. Internet access can be provided through the existing mobile telephony network, fibre-optic cable or satellite. Upgrading the mobile network to improve the data throughput and laying a fibre-optic network will take a lot of time and money; doing the same through satellite can save time as well as money.

This really is the shape of things to come. Technology companies the world over are thinking of ways to make inexpensive internet available across the world, especially in developing countries. Google, for instance, is working on a project that aims to provide internet through hot-air balloons and gliders. OneWeb seeks to address the same problem. Satellite-based telecom services, to be sure, have been launched in the past too – but with limited success. The difference is that these were meant to provide services in remote areas, while OneWeb is about universal internet access. OneWeb will complement Bharti Airtel’s existing network. Users will move seamlessly between the current network and OneWeb, without even knowing it. To some extent, that will help the company decongest its network and ease the burden on its spectrum. However, the success of OneWeb will depend on the price of the receiver, especially because one receiver can cover a house, hospital or school – not a whole village or colony. The challenge for Bharti Airtel will be to provide it at a low price, without any subsidy. Or else, it will become like the DTH business, where the heavily-subsidised set-top boxes have eaten into the profits of the service operators.

Source: http://www.business-standard.com

This is Big! Netflix is Coming To India; Local DTH Players Brace Up

We have been longing to have leading video streaming operators like Netflix enter India, but we didn’t hear any concrete information besides rumours and speculations, until recently. According to media reports, Netflix is planning to enter India by the year 2016. This news has sent all current DTH operators into a tizzy as they all know how appealing and lucrative Netflix streaming service can be.


Why Netflix Is Such A Big Deal?



Netflix is the leader in on-demand video streaming service and as per GeekWire it occupies a market share of 36% in the United States which translates to over 40 million users. This is about 3 times of Amazon Prime’s market share. Now, you would be able to able understand what the top DTH operators in India will be up against. Netflix also has more than 62 million subscribers across the globe who can watch any video (movies, TV, music videos, etc.) whenever they want.

In contrast to that, DTH operators don’t have such real-time on-demand video streaming services. Further Netflix offers some very affordable plans for its SD and HD services, which we hope would be even more cheaper in India, given the fact that Hooq, another on-demand video streaming service, has launched its services in India at just Rs. 199 per month.

DTH players in India are worried that Netflix will steal their market share significantly and hence are formulating new strategies to counter the on-demand video-streaming giant.

“It’s similar to Starbucks entering India. Everybody knew about it, but cafe brands were late to react and Starbucks came and stole the show. We don’t want to be caught on the wrong foot,” said a Tata Sky spokesperson.



Tech. & Net Neutrality Will Play A Big Role


Besides offering cheap monthly plans, one major factor that will affect the subscriber base of Netflix in India would be the internet speed. India is infamous for slow internet around the world and has slowest internet connectivity in all of Asia according to Akamai.

Talking about recommend broadband speed for enjoying Netflix, here is some information from its official website:

Video Quality	Broadband Speed (Mbps)
SD	3
HD	5
UHD (4K)	25

India’s current broadband speed is way below what is required to watch Netflix in SD quality and that’s why Netflix decision to launch by 2016 makes sense. Indian government is working on providing affordable high-speed fiber broadband plans to all households in the country. This will be supplemented by the launch of high-speed 4G data services by Reliance Jio in the country.

In the western countries many ISPs are known to throttle internet speed for video-streaming websites. India has no net neutrality laws as of now, but it will most likely be in favour of net neutrality.

Leading DTH operators like now taking the smartphone app route for tackling this threat of on-demand video streaming. The company will soon launch iOS and Android apps which let the users watch movies and videos for a fee.

“Netflix and HBO have already demonstrated scalable business models. But, a lot will depend on content as well as technology. Current streaming costs might limit their potential,” said Salil Kapoor, Chief Operating Offer, Dish TV.

Only time will tell how successful would Netflix become in India, but a lot will depend on the country’s average internet speed and net neutrality laws.

Source:  http://trak.in

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