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
ZEEL president - Legal & Regulatory Affairs, Mr. Avnindra Mohan conferred prestigious "CA Distinguished Achiever - 2017" Award by ICAI

Mr. Avnindra Mohan, President – Legal & Regulatory Affairs, Zee Entertainment Enterprises Ltd has been selected as the winner of the prestigious award in the category “CA Distinguished Achiever-2017” for exceptional performances and achievements by the Institute of Chartered Accountants of...

Television TV Channels GECs
Discovery India ties-up with Reliance Animation to produce kids IP

Discovery Communications India has commissioned Reliance Animation to produce a new disruptive Indian original content series Little Singham, an animation series inspired by the movie Singham. Targeted at kids in the age-group 4-8 years old, Little Singham will make its debut on television in...

Television TV Channels Kids
Star Sports EVP and marketing head Shubhranshu singh quits

MUMBAI: Star Sports Executive Vice President and Head Marketing Shubhranshu Singh has quit the company after a four-year stint.

Television TV Channels Sports
Discovery bags nine sponsors for Battle Ops

Battle Ops, Discovery Communications India’s (DCIN) integrated television and digital offering, has received a resounding response from the advertiser community. The show, which will premiere on Discovery Channel and Veer on 26th January, has already sold out with nine sponsors on board.

Television TV Channels Specialised and Niche
Splash and assemblage entertainment begin production on norm of the north sequel

Assemblage Entertainment, the feature-film focused CGI animation studio has begun production on the sequel of 2016 theatrical feature film Norm of the North, along with Splash Entertainment, Lionsgate and Dream Factory In many first-of-its times, it is unprecedented that an independent animated...

Television Production House Film Production
Vijendra Singh, Indian Boxing Champion associates with Pokerbaazi, one of India’s pioneer online poker platforms has signed Vijender Singh as its new brand ambassador. Prior to roping in Indian professional boxer, Indian film star, actor, and model, Sunny Leone was the face of the brand. By roping in boxing champion Vijeder Singh as its brand...

Television TV Channels Sports
COLORS INFINITY serves an intoxicating concoction of bollywood Besties, Gossip, Games

Make Saturday nights your date night with some of your favorite Bollywood best-friends, as COLORS INFINITY brings to you the latest season of the popular homegrown chat show Jeep presents BFFs with Vogue powered by Motorola and beauty partner, starting Saturday January 20, 2018 at 8pm on...

Television TV Channels English Entertainment
Experience first-hand India's historic Military Operation in a gripping new documentary

On 18 September 2016, four Jaish-e-Mohammad terrorists attacked an Indian Army Garrison in the town of Uri, Jammu and Kashmir. 19 Indian soldiers were martyred in the Fidayeen attack. Eleven days later

Television Production House Fiction
578 players to go under the hammer for IPL auction

The much-anticipated VIVO IPL 2018 player auction list is out with 578 players up for grabs. This big pool of cricketers, which comprises 360 Indians, will go under the hammer in Bengaluru on 27 and 28 January, 2018.

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories