LMOs to get shares in pay revenues, say MSOs

MUMBAI: Post CAS, the cable trade will don the new mantle of building infrastructure for the convergence era. This is how MSOs and other experts are justifying the huge investments which LMOs (last mile operators) and LCOs (local cable operators) will need to make post July 2003. The cable trade will eventually get a share in pay channel revenues, say most MSOs.

Speaking at the SCAT 2003 Bombay workshop, InMumbai networks CMD Ram Hingorani urged the LMOs and LCOs to leave the past behind and move away from the old cable system to a new era of building convergence related infrastructure.

Several LCOs and LMOs in small towns had expressed doubts about investing in infrastructure as they believed that the consumers in those areas wouldn't even consider taking pay channels and persist with the basic tier channels. This would shut out the alternative revenue streams which everyone is talking about.

Hingorani also came out in favour of proper declarations, payments of entertainment and service taxes by the cable trade. This could pave the way for a regime with reduced taxation rates, he said.

Hingorani stated that post-CAS numerous possibilities arose for increasing revenues from the same infrastructure. These new revenue streams included revenue sharing between cable distributors and broadcasters of pay channels, new emerging streams from video-on-demand, pay-per view amongst others.

Through the IBF (Indian Broadcasting Federation), broadcasters are pushing for a 70:30 ratio between themselves and the MSOs. The MSOs would have to share the 30 per cent with the LCOs and LMOs.

Hingorani however, states that the revenue sharing ratio would depend on the individual strengths of the channels within a bouquet. For instance a Star Plus would command a premium and perhaps a 70 per cent share. But, the same wouldn't be true for the weaker channels. Hingorani believes that the weaker channels would require the LCOs and LMOs to sell the channels to the subscribers. 

On the issue of the distribution of STBs, Hingorani ruled out MSOs providing boxes to consumers free of cost. He stressed that the various constituents must see the investment in STBs from a futuristic and long term perspective.

The best way was to bring down the landing costs of the box, he said. Towards this end, MSOs have already made presentations to the finance ministry to reduce customs duties on imported STBs from the unrealistically high 54.5 per cent to 10. 5 per cent, he added. 

He added that the world is heading towards digitization and the Indian cable trade must adopt digital systems. 

However, other US-based experts present at the seminar warned Indian LCOs that the US had adopted technology fast but hadn't made much profits because they hadn't studied the markets well. The key to success would be in terms of efficient packaging and pricing based on the per capita income levels of the consumers.

Latest Reads
Four news genres saw no change in BARC week 2

All the four genres apart from Hindi news urban market saw no change in second week of the year. Aaj Tak continued to groove on the same tracks in the rural, urban and U+R genres as it did the previous year. India TV and News18 India interchanged their positions in the Hindi news urban market.

Television TV Channels Viewership
Sony Entertainment Television leads urban areas in week 2 of BARC

Sony Entertainment Television jumped to second position to fifth position as compared to the previous week in the Hindi (U+R) genre in Broadcast Audience Research Council (BARC) data for week 2 of 2018. Zee Anmol retained its first position in the rural market. Sony Entertainment Television and...

Television TV Channels Viewership
Aaj Tak becomes the world’s first News Channel to be awarded YouTube’s ‘Diamond Play Button’

India’s No.1 news channel Aaj Tak creates history yet again! The prestigious ‘Diamond Play Button’ bestowed by YouTube, recognises Aaj Tak as the global no.1, the first and the only news channel in the world to have crossed the 10 Million Subscriber mark.

Television TV Channels News Broadcasting
News18 India launches campaign; asserts channel’s leadership

News18 India, Network18’s general Hindi news channel, recently launched a campaign with a humorous and quirky film to drive home its leadership position in the crucial primetime band in the highly competitive Hindi TV news segment.

Television TV Channels News Broadcasting
Join Drac’s Pack on their cruise as &flix presents its next #FlixFirstPremiere ‘Hotel Transylvania 3: Summer Vacation’

It is seldom that you get to see the hilarious side to a monster trying to get himself a date with the help of a technological app like Siri! Have you ever seen a monster film that is full of fun, frolic, laughter, romance and adventure?

Television TV Channels English Entertainment
9XM On Stage with Salim Sulaiman

To celebrate the Republic Day week, 9XM - India’s most popular Bollywood music destination announces the launch of 9XM On Stage a splendid musical night created in honour of the Indian Armed Forces.

Television TV Channels Music and Youth
Prime Focus joins hands with Pritam and Kwan to create JAM8

Integrated media services company Prime Focus Ltd has announced its collaboration with Jam8, a musical platform founded by Indian music composer/director Pritam, and KWAN, a talent management company to serve as a 360-degree creative solution provider for the M&E industry.

Television Production House Film Production
Star Movies Kids is the new kid on the block

A few years ago Star India decided to hive off some bits of its repertoire and focus exclusively on its main GEC Star Plus and the emerging sports scenario. Surprisingly, the channel is now taking a new turn by targeting the youngest viewers. As per industry sources, the Uday Shankar-led network is...

Television TV Channels Kids
Zapak and Cartoon Network India partner to launch ‘Ben 10 - Alien Run’ mobile game

Anil D. Ambani led Reliance Entertainment’s Zapak, India’s leading Gaming Destination, in association with Cartoon Network India, rings in the New Year with an epic launch for fans and gamers alike, with Ben 10 - Alien Run Mobile Game.

Television TV Channels Kids

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories