Television

Financing of STBs not a problem area

MUMBAI: A JP Morgan report points out that the monthly financial charge (depending on the price of the set top box) will be a key determinant of CAS penetration.

The JP Morgan report says the following about the type of STBs (set top boxes), prices and financing options:

Type of STBs to be used, Analog or Digital?

All the MSOs have decided to go ahead with digital STBs as they have a few advantages:

o Firstly, digital STBs are used the world over because of their superior picture quality and higher security.

o Secondly, the bandwidth consumed by ten analog channels is equivalent to one digital channel. Thus, more bandwidth is available to the cable operators for providing other services.

o Thirdly, as we will enumerate in detail later, the headend in the sky (HITS) model is likely to be adopted by MSOs in the long run, and HITS is compatible only with digital STBs.

o Finally, digital STBs would guarantee easier transition to high-end digital boxes in the future with a greater amount of interactivity. However, the MSOs and the larger conglomerate of cable operators and independent cable operators (ICOs) effectively control around 50 per cent of the market. The smaller operators in the fragmented industry might go in for the cheaper analog models. However, this percentage will likely be small in the metros, where CAS will be implemented first.

Price of the STB

The price of an STB will be a key determinant in the level of acceptance of CAS. The current prices of analog STBs are as low as Rs 2,000. Some of the manufacturers, such as Himachal Futuristic Communications and Catvision, are looking to lower the prices even further.

Digital STBs currently cost around US $70-80 pre-duty, which is around Rs 3,500. These are base models of digital STBs, which do not have many interactive features. However, the low feature digital models can be upgraded to high-end models with incremental investment in the future.

The current duty on STBs is over 50 per cent, which makes the final cost of the box around Rs 5,500. Budget 2004 did not cut the duties of STBs, as had been widely expected (though the basic customs duty has come down from 30 per cent to the new peak duty of 25 per cent).

Still, the duty is pretty high and the industry expects the government to re-examine the issue. Overall, digital STBs with low interactive features to be available for around Rs 4,500-5,000 before any MSO starts placing orders. It is likely that the volumes of orders placed will bring down the prices of STBs.

Financing options available to the subscriber for an STB

Until now, there have been no tie-ups between financial institutions and MSOs for the financing of STBs. This can be attributed to the fact that there are a number of uncertainties-such as the pricing of the FTA bouquet and the question marks on the strategies pay channels will adopt.

Financing is unlikely to be a problem going forward. The risk borne by the financial institution is limited by the fact that the STB of the defaulter can be retrieved.

Additionally, interoperability problems would mean that subscribers will have limited use of the set top box of one operator in another MSO's or LCO's network.

A multitude of schemes to be offered across the nation varying from down payment to part payment with monthly installments. Additionally, if the price of the STB remains above Rs 5,000, the MSO might have to provide some subsidies.

Financing will likely not be a problem area, though the monthly financial charge (depending on the price of the STB) will be a key determinant of CAS penetration.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/23/pkl.jpg?itok=trzJ5PPB
PKL Day 2: Category B players cross 5-mn mark with Suraj Desai for Rs 5.25 mn

With the results of day one, Nitin Tomar had emerged with the highest bid of Rs 9.3 million in the PKL auctions.

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/23/English-news-genre.jpg?itok=ovZXVnHY
English news genre grows only 10% in Chrome week 20

MUMBAI: In week 20, the English movies emerged as the number one genre in six metros with a growth of 34.4 per cent opportunity to see (OTS), according to market researcher Chrome Data Analytics. Movies Now led the section with 48.8 per cent OTS.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/23/Prabal-Pratap-Singh.jpg?itok=fzU1zkDA
Programming revamp benefitted News18 India, says editorial head

MUMBAI: Hindi news channel News18 India, which undertook a revamp of its programming strategy few months back focusing on exclusive reports largely based on sting ops, has claimed that the plan is working as its ratings and viewership have increased.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/23/pro-kabaddi.jpg?itok=6qEFFF8S
Top notch Pro Kabaddi League auction commences; top player bid Rs 93 lakh

MUMBAI: India’s second most watched sports league – Pro Kabaddi League (PKL) – has begun the countdown to its fifth season. With Vivo fixed as the title sponsor for the next five seasons, the player auction got underway on 22 May and will end on 23 May. The 12 teams began bidding for players...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/22/modi.jpg?itok=ESOxR2va
Mann ki Baat gains popularity among NRIs, CMs to emulate idea

Even as the 32nd instalment of ‘Mann Ki Baat’ by Prime Minister Narendra Modi is slated for next Sunday, it is being emulated soon by some Chief Ministers who are commencing similar broadcasts.

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/22/sajan_0.jpg?itok=iT_PurNQ
New series on Sony Sab on how one innocuous lie can lead to trouble

A new series on Sony Sab. Sajjan Re Phir Jhooth Mat Bolo is a story of how an innocuous lie leads to a mountain of lies as the protagonist cannot risk telling the truth for the fear of losing his love.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/22/promax_0.jpg?itok=T5Qr4GAY
MTV gets 10 of the total haul of 18 PromaxBDA awards by Viacom18

Viacom 18 Media has bagged 18 awards across categories at the recently concluded PromaxBDA India 2017 Awards, all the awards going to those conceptualized and produced in-house.

Television TV Channels Music and Youth
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/22/vh1.jpg?itok=tDZt_-aC
Vh1 partners with Vivo brings the 2017 Billboard awards to India

Vh1 is all set to air the much-awaited 2017 Billboard Music Awards presented by Vivo Camera & Music.

Television TV Channels Music and Youth
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/22/aditya.jpg?itok=PfNLpQYt
Epic to reposition as an infotainment channel; Sehwag show announced

It’s making an epic shift. Epic TV which saw the departure of its CEO Mahesh Samat for Disney last year, is now positioning itself as an infotainment channel, broadening its programming from just mythology and history and adding a wide array of original content across various genres.

Television TV Channels Factual & Documentary

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories