Cable TV

Delay in Phase III monetisation likely to disturb profitability of MSOs: ICRA

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/07/08/Untitled-1_39.jpg?itok=_PWcMZP4

MUMBAI: In the cable TV space, in the current fiscal the revenue growth of multiple system operators (MSOs) will remain sensitive to regulatory changes, says ICRA. While lifting of stay orders and consequent discontinuation of analog signals in Phase III markets will remain a key subscription revenue growth driver, any extension with respect to Phase IV deadline (beyond December 31, 2016) will impact the activation revenues.

With an estimated population of over 60 million households in Phase IV markets, cable TV players do not anticipate any extension in Phase IV deadline. However, the implementation is expected to be along the experience of Phase III, with analog signals being discontinued in a phased manner. Of the analog population in Phase III and Phase IV markets, residual analog subscriber base amongst the top three MSOs stood at ~9.5 million subscribers only (as on March 31, 2016), against a total analog population of over 6 0 million in the country, indicating healthy growth opportunities for DTH operators and regional MSOs. In this direction, DTH operators have introduced lower priced vanilla STBs and channel packages to tap the opportunity in Phase IV markets; however, DD Free Dish is also expected to emerge as a key player in Phase IV, given the price sensitive nature of subscribers.

“Over the last few years, market leaders in the cable TV space have adopted an inorganic growth strategy for entering new geographies and increasing their subscriber universe, consolidation in the cable TV space is expected to continue as MSOs look at further strengthening their market position in their respective geographies,” says ICRA Ratings SR GVP Subrata Ray.

While the overall placement revenues are expected to remain buoyant, driven by new channel launches and the inclusion of tier II and tier III markets in audience measurement metrics; some correction on account of the change in the nature of content deals (net of placement revenues) with larger broadcasting networks is anticipated. While the subject of discontinuation of analog signals in Phase III markets remains under litigation, monetisation of the Phase III markets is expected to get deferred by nearly a year before the benefits of the healthy STB seeding, achieved in Phase III markets, start percolating.

“In view of the potential delays in Phase III monetisation, ability of the MSOs to improve cost efficiencies and ARPUs from Phase I and Phase II markets remains crucial to support the profitability metrics in the current fiscal,” says Ray.

During this transition phase, the cash accruals of MSOs are expected to improve gradually as incremental capex requirements are likely to remain low.

“The capex outlay of MSOs over the medium term will be driven towards achieving higher broadband penetration in identified markets; investments in LCO management and improving penetration of value-added services such as HD channels and Video-on-Demand in digitised markets. In addition, replacement capex for STBs seeded in Phase I and Phase II markets will also drive the investment requirements of MSOs over the medium term,” adds Ray.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/17/Navjot%20Singh%20Sidhu-800x800.jpg?itok=YP6R6Z6-
Sidhu's cable, DTH tax plan gets Punjab cabinet nod

MUMBAI: Entertainment lately seems to be affected the most with one tax after another -- the GST and tax on watching television programmes. Now, in a ‘blow’ to local cable network companies, entertainment tax will be levied on DTH and cable connections in Punjab. DTH operators however will now...

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/09/damani_0.jpg?itok=Wwiy4T08
Digital cable federation AIDCF secy-gen Saharsh Damani quits

Saharsh Damani has decided to move on and put in his papers as the founder secretary-general of the All-India Digital Cable Welfare Federation. However, his resignation will be effective by October-end.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/05/Tact-TV-Story%20%282%29.jpg?itok=G5xAhXGF
Arasu digital STB costs Rs 200, govt alerts subs

MUMBAI: Government authorities in Tamil Nadu are announcing the basic rate of installing a new STB following complaints by subscribers of the state-owned Arasu Cable TV Corporation that cable operators are charging them around four times the cost. Tirupur operators are reportedly threatening to...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/04/sameer.jpg?itok=XPlIjouw
Hathway Bhawani MD and CEO Sameer Joseph quits

Hathway Bhawani Cabletel and Datacom’s managing director and CEO Sameer Joseph has resigned with immediate effect, that is, 4 October, 2017.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/04/Arasu-TV.jpg?itok=GqF-esJ5
Post-DAS, tardy MSO registrations in six months, 14 new additions

NEW DELHI: Despite the fact that it is more than six months since the country adopted digital addressable system (DAS) for cable television, the number of multi-system operators (MSOs) has risen by meagre 14 over the last two months to reach 1469 as on 30 September 2017.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/02/Arasu-TV.jpg?itok=-XFAPOo_
TN advisory: LCO licences may be cancelled if they bully Arasu subs into buying STBs

MUMBAI: A Tamil Nadu state advisory has informed subscribers of Arasu Cable not to pay money to the local cable operators (LCOs) for set-top boxes (STBs) which are actually being provided to all for free.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/28/shaji.jpg?itok=VYoKLi8D
Shaji Mathews appointed as Kerala MSO KCCL CEO

MUMBAI: From Gujarat, where he helped steer MSO GTPL towards its IPO, he is now headed back to his home city of Kochi in Kerala. Shaji Mathews has been appointed as the CEO of Kerala Communicators Cable Ltd (KCCL), a leading cable TV and broadband network in Kerala which is a consortium of...

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/26/Tact-TV-Story.jpg?itok=fKW9Xc6J
MIB asks Arasu: Give proof of analogue switch-off

NEW DELHI: The Tamil Nadu Arasu Cable TV Corporation (TACTV), which had early this month claimed to have gone digital, has been asked to “confirm that you have already switched off analogue signals and are carrying only digital encrypted signals on your cable TV network.” In a letter to TACTV...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/Mihir_Shah.jpg?itok=l_0InXUO
Indian pay-TV expanding by 10.6 pc, 77 pc to be digitised, ARPUs to rise by '22: MPA

MUMBAI: Pay-TV players in Asia-Pacific region are girding up their loins to integrate online video into their service bouquets and recalibrate owing to broadband growth while concentrating and scaling up their investment on premium content as they stare at competition

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories