Cable TV

Siti Cable and Dish TV join hands to form ?Comnet?

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/cable_tv_images/2015/07/02/SITI_Digital_Cable_Television_0.jpg?itok=w_OwgZCX

MUMBAI: Dr Subhash Chandra led Essel Group believes in innovation and how. The two companies from the group, multi system operator (MSO) Siti Cable Network and direct to home (DTH) player Dish TV have formed a joint venture (JV) to deal with the ever growing content cost. Christened ?Comnet?, the JV will help synergise the strengths of both the organisations in dealing with broadcasters.

Essel Group has synergies in broadcast, cable, DTH and over the top (OTT) services. ?When we look at either of these platforms, the key to its existence is content. The cost of content today is increasing rapidly and at a pace with which even the connections in the market aren?t growing,? tells Siti Cable CEO VD Wadhwa to indiantelevision.com.

According to Wadhwa, while the consumer average revenue per user (ARPU) levels is increasing in single digits, broadcasters, who sign one-year deals with distribution platforms, expect the revenues grow anywhere between 20-60 per cent. ?This is impractical, unsustainable and is no way any business model will evolve or work,? he adds.  

The reason both Dish TV and Siti Cable have come together is to be able to make the best use of each other?s advantages and disadvantages. While DTH doesn?t enjoy as much carriage as cable gets, when it comes to content deals, DTH platforms have an upper hand. ?While my input cost, which is the content cost is growing at a fast pace, I am not being able to drive the market price. If consumer ARPUs remain low, we can?t allow the content cost to go up. Also considering both the platforms target the same set of consumers in the market, it made more sense for us to join hands to deal with broadcasters,? informs Wadhwa.

Dish TV CEO RC Venkateish says, ?This move will help both the entities to provide quality content at affordable price to consumers.?

Both, the DTH and cable platform currently is unable to pass on the increased input cost to the customer. ?And then there are the additional taxes. The Delhi government recently increased the entertainment tax from Rs 20 to Rs 40, not realizing that it is a price sensitive market. Neither the consumer nor the broadcaster is ready to take the burden of the increasing cost. In order to protect our business model and remain a consumer friendly company and comply with all the rules and regulations, we thought of coming together,? he says.  

The JV will help the duo in not just controlling deals with broadcasters, but also in sourcing equipments. ?Both Dish TV and Siti Cable need set top boxes. There are a lot of synergies if we work together,? he adds.

Between Siti Cable and Dish TV, the two currently have more than 2 crore subscribers, which in the next two years, according to Wadhwa will go up to 4 crore. ?If we are currently present in 2 crore households, we are talking of almost 9-10 per cent of India?s population. This gives us a lot of leverage,? he says.

According to Wadhwa, while the broadcasters have already come together to work for the advantage of the broadcasting sector, the distribution platforms too need to work in a synergy. ?While that is currently not possible, at least the two companies in the group should start working together immediately,? he opines.

As part of the JV, the duo will hold joint discussions with broadcasters, taking joint call on the deals. ?If the broadcaster wants to arm twist Siti Cable, it has to be careful that Dish TV may also react or vice versa,? he informs.  

Starting 1 July, 2015, it is ?Comnet? that will do the negotiations with broadcasters for both the platforms together. Post that, a direct contract between the broadcaster and the distribution platform will be signed. ?The benefit will be shared between Dish TV and Siti Cable,? concludes Wadhwa.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/den.jpg?itok=vERCFpOP
Den reports improved numbers for Q2 over Q1

The Sameer Manchanda-led Indian cable distribution network and broadband internet services (broadband) provider Den Networks Ltd

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/14/grt.jpg?itok=OAWnlsvm
GTPL cable TV business revenue up in second quarter

Indian multi-system operator and internet service provider GTPL Hathway Ltd (GTPL) reported 13.8 percent increase in total income for the quarter ended 30 September 2018

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/13/hat.jpg?itok=Gw-Cd_wz
Hathway in the red due to higher expenses, forex loss in second quarter

In the first quarter of the previous fiscal, restructuring at Indian multi system operator (MSO) Hathway Cable and Datacom Ltd (Hathway) had brought for it a positive bottomline.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/10/dth.jpg?itok=zX4ravcq
Indian DTH equipments worth Rs 7.83 cr seized by Pakistan authorities

Pakistan authorities have seized a large quantity of smuggled Indian direct-to-home (DTH) equipment worth Rs 7.83 crore from various markets in a countrywide crackdown against illegal devices according to a report published by dawn.com.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/09/Vivek-Couto.jpg?itok=iqwcdf9q
Indian pay TV revenue to touch $16 bn by 2023: MPA

As per a new report by Media Partners Asia (MPA), the pay TV revenue in Asia will top $56 billion in 2018. This will continue to grow at 3 per cent CAGR till 2023 and likely to exceed $66 billion by then. Pay TV revenue consists of subscription fees and local and regional advertising sales.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/01/hinduja.jpg?itok=ZXqONP2o
Q2 results: Hinduja Ventures reports total income of Rs 26.72 crores

HVL on standalone basis reported a total income of Rs. 26.72 Crores for the half year ended September 30, 2018.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/24/Vynsley-Fernandes.jpg?itok=KbyFWkYU
IMCL aspires to hit 7 mn subscribers in a year

At a time when the face of India’s multi-billion dollar cable industry is changing rapidly with the emergence of new players, Indusland Media & Communication Ltd (IMCL), one of the oldest players in the industry, has announced a new offering ‘I Am Mumbai, I Am InDigital’.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/11/act.jpg?itok=jNeP51zC
ACT Fibernet seeks funding; discloses financials

In its prospectus with SEBI, ACT Fibernet submitted the financial details and is looking for fund-raising to expand the business across India. ACT Fibernet reported revenue of Rs 1,217 crore and EBITDA of Rs 211.67 crore in fiscal 2017.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/05/hathway.jpg?itok=3H7_WXyA
Hathway to target existing users for new OTT, cable hybrid STBs

Indian consumers are not losing interest in linear TV anytime soon but one can’t be too wary given the OTT burst. To stay ahead of the game, Hathway has unveiled two new products – an OTT set-top box and a cable hybrid box. Both of the boxes have been priced at Rs 2999.

Cable TV Local Cable Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories