Cable TV

Digitisation has failed to show increase in ARPUs: Deloitte

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/cable_tv_images/2014/06/25/head99-watching-tv.jpg?itok=tG68BzXj

NEW DELHI: Although carriage fees saw a reduction of 15-20 per cent after the first two phases of digitisation, the delay in implementation of the various phases of digitisation means the promised jump in subscription revenues and average revenue per user (ARPU) has not materialized.

The recently launched Digitization and Mobility: Next frontier of growth for M&E, report by Deloitte states, “One year into the implementation of digitisation, the cable and broadcast sector is still trying to iron out creases and get systems in place. The key goal of digitisation was addressability, which was expected to plug leakages in the system. While cable subscribers have been increasing, rampant under-declaration meant, Multi-System Operators (MSOs) that transmitted the signals to cable operators earned little from the large subscriber base.”

In 2014, Deloitte predicts that the digital TV distribution space – both digital cable and Direct-to-Home (DTH) would find ample room for growth given the catalysing effect of digitisation and the headroom for growth provided by non-TV households in the country.

The report prepared for the ASSOCHAM annual M&E meet says about 12 million set-top boxes have been seeded and 80 per cent consumer application forms have been received as of December 2013. The Telecom Regulatory Authority of India (TRAI) claims 100 per cent digitisation in DAS phase II.

TRAI has also said recommendations on the new DTH licences would be brought out very soon.

HITS licenses which have been issued to two players, is expected to enable digitisation in phase III and phase IV markets.

Meanwhile, the report notes, “Complaints have poured in against set-top boxes. People in the city are complaining about digital set-top boxes installed in their houses and offices. Visual and sound disturbances coupled with channels going off air from time to time have left viewers unhappy.”

It also notes that “in the haste to install set-top boxes in the city, cable operators have overlooked a crucial step - that of filling in the Cable Access Form (CAF) before installation of the device. The purpose behind mandating DAS was to identify the actual number of cable viewers in the country. But with most customers not filling in the form, the purpose still remains defeated.”

“With penetration of TV in India standing at approximately 65 per cent, at present, the country has close to 80 million non-TV households, which presents a key opportunity for the television distribution players. This low level of penetration holds a great potential for players to increase their subscribers and revenues. Drivers such as rising incomes, decreasing household size, multi TV phenomenon and rising urbanisation would only provide a further fillip.”

Noting that the government’s digitisation mandate is “slowly but steadily progressing towards its target,” the report says the television distribution space is abuzz with prospects, albeit it would call for investments and improvements, especially from the digital cable players. All metros except Chennai have been largely digitised and the phase II of digitisation, which covers 38 cities, is also nearing completion. Phase III and IV of digitisation targets December 2014 for their completion. This would mean digitisation of additional 40 to 50 million households in the balance towns.”

The report also says that phase III aims to focus on digitisation of all urban areas (municipal areas). Given the extensive coverage of MSOs and LCOs in such areas, digital cable is expected to make the most in the relatively densely populated areas, notwithstanding the churn of subscribers to DTH. In the first phase of digitisation, DTH operators were able to grab 20 per cent of subscribers converting them from analog to digital.

Phase IV aims to focus on digitisation for the rest of India, which predominantly aims at rural areas and tier II cities. DTH is expected to gain the most in areas with sparse population and inadequate cable infrastructure.

Digitisation phases, scope and affected subscribers

Digitisation phase               Scope                                        Subscribers affected (million)

Phase I                            Delhi, Mumbai, Kolkata, Chennai        8-10

Phase II                           All cities with population > 1 million   12-14

Phase III                          All urban areas (Municipal areas)        30-35

Phase IV                         Rest of India                                               22-25

Source: Industry discussions

DTH, as a sector, had started off by concentrating on rural areas, which were deprived of cable infrastructure and gradually also entered the urban markets. However, they are still strong in rural markets.

Given the complexity of the exercise across the country and the rate at which television penetration is growing (MPA expects India to have 183 million pay-TV homes by 2020); the scale of undertaking of digitisation will be a big challenge.  

But it says analysts and sector professionals agree the future looks promising with the lessons learnt from phases I and II.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/20/Cable%20tv-800x800.jpg?itok=anE4a5lP
Final phase STB seeding is 35% even as deadline nears

NEW DELHI: Even as the country has set a deadline of 31 March this year for full digitisation of cable TV, a Parliamentary Committee has been told that only 35 per cent seeding of set-top boxes (P-IV) has been achieved in rural India though the Parliament was told last week that 66.79 per cent (P...

Cable TV DAS
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/16/Rajyavardhan-Rathore%20%281%29.jpg?itok=1lAqmh4s
DAS deadline extension ruled out, govt claims 66% seeding done

The Government reiterated today that there was no question of extension of the final phase of digital addressable systems for cable television in the country.

Cable TV DAS
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/14/S%20N%20Sharma-01.jpg?itok=NQOq3jNc
DEN to vote on demerger of broadband biz

MUMBAI: DEN Networks, on 11 March 2017, wrote to the National Stock Exchange and the Bombay Stock Exchange Limited about the conclusion of court-convened meeting.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/10/panesar-wadhwa-ashok-sharma.jpg?itok=3YaZJ1ua
Entertainment tax: MSOs & LCOs must collect & pay, HC halts Delhi 'action'

MUMBAI: The Delhi High Court has held that MSOs (multi-system operators) and LCOs (local cable operators) distributing television signals to subscribers directly are liable to collect and pay entertainment to the government. The court’s decision came on pleas filed by four MSOs – Hathway Cable and...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/09/SN-Sharma-800x800new.jpg?itok=vI_rjaXf
DEN Digital Cable: Den Networks hikes stake to 88.57%

MUMBAI: Den Networks recently entered into a pact with DEN Digital Cable Network (DDCN) for increasing equity stake of the company in DDCN. Cable television multi-system operator (MSO) Den Networks has bought an additional 37.57 per cent shares in its subsidiary DEN Digital Cable Network,...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/08/SN-Sharma-800x800new.jpg?itok=6t-8nPe_
DEN is focused on upping subscription revenue & be future-ready: SN Sharma

In the Indian broadcast and cable industry, SN Sharma is regarded as a sharp planner, quick on the uptake and a `yaron ka yaar’ (a true friend). However, as with any successful corporate exec, Sharma too has had his share of critics throwing allegations; most of them have not stuck, though....

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/06/mib-minister.jpg?itok=84j0Rv8C
Faced with deadline, MIB says all provisional MSOs will be deemed regular

NEW DELHI: Faced with just less than one month to go before total switch-off of analogue signals, the Government today decided that all provisional multi-system operators will be deemed as having regular licence for ten years.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/06/ashok-mansukhani%20%281%29.jpg?itok=1laLAXke
IndusInd Media board gives nod for rights issue

Hinduja Ventures Limited has informed the Bombay Stock Exchange Limited pursuant to Regulation 30(9) and 30(12) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that the Board of Directors of the company noted that IndusInd Media & Communications Limited, a...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/03/TS%20Panesar-800x800.jpg?itok=jq4wBXYP
We believe the new cable TV tariff order will benefit everyone - Hathway Cable video CEO TS Panesar

Tavinderjit  Panesar is in the hot seat. As the CEO of the video business of the listed MSO and Rajan Raheja group company Hathway Cable & Datacom, he has to steer it in challenging times. The company’s share price has been waddling around in Rs 30-40 price range despite being spoken of as one...

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories