Cable TV

One out of 6 cable households will get pay channels: CSB report

MUMBAI: A report titled "Conditional Access or Catch 22 - Who Will Blink First?" compiled by the Citigroup Smith Barney (CSB) report (dated 15 May 2003) says that very little progress has been made on the CAS front which the firm maintains is "noble in spirit". It also adds that only one out of six cable households in the metros will receive their favorite pay channels if the government is firm on its 14 July deadline

The report foresees a period of significant uncertainty ahead in the Indian media and entertainment sector. Implementation of conditional access (CAS), besides having an impact on the media and entertainment industry, will also have significant ramifications for all sectors of Indian society including advertisers, FMCG companies, white goods manufacturers amongst others - adds the report.

The CSB report which attempts to conduct an impact analysis of various implementation scenarios on the Indian media and entertainment sector, states that a lot of work need to be done on the "ground" in terms of implementation and seeding of set-top boxes.

The report says that the maximum number of boxes which will be seeded (total metro C&S at 6.5 million) would be around 1.5 million. It adds that this scenario could have negative political implications.

Set-top boxes:

On the issue of set-top boxes, the report says that there is little evidence of a move towards installation of set-top boxes in consumers' homes. While certain pay channels continue to advertise the necessity of acquiring set-top boxes (to continue receiving them post-July 14), local cable operators (the consumer interface) remain clueless about pricing and availability of the same, it states.

Consumer's point of view: 

From the consumer's point of view, the CSB report states that CAS is not a step in the right direction in terms of affordability.

Based on the income demographics of the consumers in the four metros, the report makes the following observations:

* Cable currently enjoys ~80 per cent penetration among the addressable households in the metro cities.

* Approximately 45 per cent+ of households in the metros (in the monthly income bracket of Rs 9,000+) could acquire set-top boxes (priced in the region of Rs 1,500 - Rs 3,000).

* However, the balance of 55 per cent would struggle to afford a Rs 1,500 set-top box coupled with monthly charges in excess of Rs 200 (+5 per cent of income)

*This division between the 'haves and have nots' will be more apparent in the rest of India where only 10 per cent of the population will really be able to afford conditional access through set-top boxes.

* The swing factor for approximately 25 per cent of the metro population (Income - Rs 6,000 - Rs 9,000) will be the price of the set-top box.

Consequently, besides the issues of availability of set-top boxes, affordability will also be an issue, the report adds.

The report adds that this issue will gain in significance as the conditional access rollout moves on to Phase 2 - implementation in the rest of India.

The report makes an assumption that if CAS is rolled out over the next two years across India, this would be possibly the largest incremental cost item for most Indian consumers. At an average STB price of Rs 1,500,500 (low-end analog box produced on a large scale) and assuming a 50 per cent conversion rate of the existing 42 million India C&S household base, there would be a huge outgo from the Indian consumer's wallet.

Over the past few years television viewing in Indian homes has become a necessity with viewers accustomed to receiving premium content (movies/premium sports/entertainment) at the cost of Rs150-300 per month.

Hence the propensity to purchase a set-top box (to continue with the existing viewing experience) will take precedence over all purchases. In the transition period, impact on sales of other consumer durable items could be significant.

More specifically, implementation of CAS will also have an impact on the sales of the second TV set in most urban households given that post-CAS each television set would require its own set-top box.

Also read: 

Tier 1 channels going 'pay' will have a negative impact: CSB report 

Cable ops real gainers of pay channels turning FTA: CSB report

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/17/caletvheaend12.jpg?itok=i9dREprN
Government to once again make MHA clearance compulsory for MSOs?

Every multisystem operator (MSO) which is licensed with the ministry of information & broadcasting (MIB), will now have to also seek the ministry of home affairs' s (MHA's) ecurity clearance. A notification to this effect is being planned and passed by the Narendra Modi government.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/07/court.jpg?itok=VGZT1e9Z
MSOs move Madras HC seeking relief on inter-connect pacts

MUMBAI: The All India Digital Cable Federation (AIDCF) had filed a petition in the Madras High Court few days back pleading a directive to broadcasters to maintain a status quo on renegotiating agreements between TV channels and MSOs till a final judicial call was taken on TRAI’s new tariff regime...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/04/rajesh_0.jpg?itok=MdmBXAkK
Siti bullish on broadband: Rajesh Sethi

Mumbai: Despite uncertainty in many quarters, these are interesting times for people following the multi-system operator (MSO) industry. Recently, Siti Networks Ltd (Siti) released its Q2 and H1 results for 2017-18, reigniting the hope for growth in the industry. Announcing growth in operating...

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/30/louis.jpg?itok=BK_0OU5t
Louis Boswell appointed CASBAA CEO

CASBAA Association has appointed Louis Boswell, senior media and digital business leader in Asia, as the chief executive officer (CEO). Boswell will begin his tenure on 1 January 2018, succeeding outgoing CEO Christopher Slaughter.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/28/Bibhu%20Prasad%20Rath.jpg?itok=ibHBXDgS
Multiple challenges weaken Ortel numbers in second quarter

Hit by multiple challenges, Indian regional multi-system operator (MSO) reported lower numbers and posted a net loss – the second one this fiscal- for the quarter ended 30 September 2017 (Q2-18, quarter under review). The company expects stabilization of business to happen one year down the line...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/20/comcast.jpg?itok=83-etJml
Now, Comcast in talks to buy 21st Century Fox

According to several reports, 21st Century Fox is on the block and Philadelphia-based cable TV conglomerate Comcast is interested. Comcast has approached Fox about acquiring most of the company. Reportedly, Verizon, the biggest wireless carrier in the US, has also thrown its hat into the ring....

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/13/casbaa.jpg?itok=INiAN1Jy
CASBAA elects new board directors

The Cable and Satellite Broadcasting Association of Asia (CASBAA) has announced the election of several new directors to its board, and the return of a number of long-serving directors.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/13/cable%20800x800.jpg?itok=2G-o8INC
Workshop to train manpower in cable TV distribution

NEW DELHI: A workshop is being held on 27 November to deliberate on the importance of skilling, certification and accreditation of the manpower deployed in cable TV distribution.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/10/Den-Networks_SN-Sharma.jpg?itok=xOHtVNMk
Higher subscription & activation lead Den's turnaround in Q2

BENGALURU: Indian multi system operator (MSO) Den Network (Den) reported growth in operating revenue, operating profit (EBIDTA) and profit after tax (PAT) for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter. In Q2-17 (the corresponding...

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories