Technology

Carriage market to stay buoyant

MUMBAI: Broadcasters will continue to be pinched by hefty carriage fees this fiscal as the industry forecasts a 10-15 per cent jump over the year-ago period.


The payout to cable TV operators could touch Rs 17-18 billion as space on analogue cable continues to be choked, digitisation is slow, and new channels are keen to launch in the Indian market.


An improved advertising market will also allow some broadcasters to up their carriage fees, particularly in genres where there is intense competition.
 
“Niche and new channels are continuing to pour in. This will contribute to some swelling in the carriage fees as there is severe bandwidth crunch. The carriage market is expected to go up by 10-15 per cent,” says Star Den chief executive officer Gurjeev Singh.


Regional channels, traditionally conservative spenders on carriage, are also spoiling the market as they strive for special attention from cable TV operators in specific markets.


“New entrants and regional channels with focus on some markets are the new spoilers. The carriage market could touch Rs 18 billion this fiscal,” says MSM Discovery president Rajesh Kaul.


Grabbing a small slice of the market are the direct-to-home (DTH) operators who are discovering this as a new revenue stream as they pile up subscribers. In FY’10, they took away close to Rs 600 million but the pace of growth is going to be slow.


“Dish TV had targeted Rs 500 million as carriage revenue but had to settle down with around Rs 200 million as the advertising market slumped. Though this year there is an economic improvement, the carriage growth will be slow. Only Tata Sky and Airtel digital TV are the other DTH operators who are in a position to charge carriage fee from new channel launches,” says a media analyst who is tracking the DTH sector. 
 
Though a small pay cheque at this stage, broadcasters are not amused. Says Kaul, “We thought digitisation would cure carriage payouts. But there is a transponder shortage and they are fighting against low ARPUs. Luckily at this stage, the DTH players are charging carriage fees only from new channels.”


DTH operators, however, do not see carriage revenue as their area of focus. “Carriage is not a critical piece of our revenue mix and is too insignificant. We would focus on subscription revenue. We are customer-driven and our strategy is to offer the right content,” says Airtel digital TV chief executive Ajai Puri.


Some broadcasters believe the carriage market will fall and is a short-run trend. Says Kaul, “This is not sustainable and a correction is bound to happen. We expect a downward trend after a year’s time.”


That could be wishful thinking. The size of the carriage revenue will depend on the overall market buoyancy. And at a macro level, as analogue frequencies are blocked, channels, facing stiff competition, will jostle for prime space on cable networks and pay a premium.


Agrees Indusind Media & Communications CEO and MD Ravi Mansukhani,”Where is the space? For all this empty talk about a carriage slowdown, there will be no correction unless we have cable digitisation.”


Cable companies, in fact, have turned around in the last couple of years purely due to carriage revenue growth. For the leading multi-system operators (MSOs), carriage is accounting for over 50 per cent of their revenues.


Says Mansukhani, “Without carriage income, every MSO would have been in the red. MSOs, however, have expanded to not just the carriage-led markets and acquisitions in these smaller cities have been fuelled by profitable subscription revenues. In the era of digitisation, the business model will change. Presence in high ARPU – and not necessarily carriage – markets will be crucial.”
 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/05/16/divesh.jpg?itok=WN0NPBYn
Livestreaming App SWOO sees momentum in India; Launches Trivia Format in India

SWOO, a leading global livestreaming platform established in Middle East, today announced the launch of its SWOO TRIVIA SHOW – a celebrity hosted live video streaming game show for Indians. SWOO is a user friendly, engaging and feature-rich live broadcasting app available across Android/ iOS/ Web...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/05/14/TiVo-800.jpg?itok=XNFEcfVQ
TiVo exits STB business

MUMBAI: TiVo is exiting the manufacturing, sales and distribution of set-top boxes to a yet-undisclosed third party, the company has said.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/05/09/iot.jpg?itok=aq6Nc5eG
IET India IoT Panel joins hands with exhibitions india group for the 3rd edition of IoT india congress

IoT India Congress is India’s Platform of Platforms for the Internet of Things conceptualized by IET India IoT Panel, a think tank constituted by the Institution of Engineering and Technology (IET) India. The 3rd edition of IoT India Congress will be hosted in collaboration with India’s leading...

Technology Software Firmware
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/05/08/lexi.jpg?itok=_UKBq1kZ
Tata Elxsi's Automation suite adopted by pan-European Media and Telecommunications Company

Tata Elxsi, a global design and technology services company, announced the licensing of its integrated test automation and monitoring suite ‘FalconEye’ to a pan-European media and telecommunications company for OTT automation and improving streaming performance.

Technology Software Firmware
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/13/nabshow.jpg?itok=F8KKyrXQ
Verimatrix recognized for contributions to latin american Pay-TV market with PRODU award win at NAB Show

LAS VEGAS: Verimatrix, a specialist in securing and enhancing revenue for network-connected devices and services, has received the PRODU Award for Best Pay-TV Technology Contribution on behalf of its MultiRights™ OTT solution. MultiRights helps service providers effectively navigate the modern OTT...

Technology Software Firmware
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/09/magai.jpg?itok=hC6uaBo3
Amagi debuts machine-learning powered content-preparation suite

Amagi, a cloud-based technology provider for media processing, has launched Tornado, a machine learning-based content preparation service that enables TV networks and content owners to scale their operations and accelerate broadcast workflows.

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/03/08/tivo.jpg?itok=vqdqRSNf
Sharp and TiVo extend interactive program guide deal to power content Discovery across entertainment devices

MUMBAI: TiVo Corporation (NASDAQ: TIVO), a global leader in entertainment technology and audience insights, today announced that Sharp Corporation will further utilize TiVo’s G-Guide HTML across Sharp 4K smart TVs and Ultra HD Blu-ray recorders in Japan, TiVo’s G-Guide xD app and remote schedule...

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/25/priyanka.jpg?itok=C0lEuPHt
HARMAN announces Priyanka Chopra as global brand ambassador

HARMAN International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd. focused on connected technologies for automotive, consumer and enterprise markets, today announced that actress, singer, producer and philanthropist Priyanka Chopra has been named a global brand ambassador for the...

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/24/etere_0.jpg?itok=XgPAaBYr
Etere HSM expands interoperability with Grass Valley

Etere HSM features an integration with Grass Valley that improves interoperability, streamlines connectivity, enables faster content processing and includes deep archive capabilities. Etere introduces a new integration layer between Etere Hierarchical Storage Management (HSM) and Grass Valley...

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories