Television

LMOs And The CAS Conundrum

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/02/02/Pay-TV.jpg?itok=ic8xMA7T

Nothing can get more complex than this. It is not only the pay-TV broadcasters and the government who are wanting to take time out for implementation of conditional access system (CAS). Opposition is coming from within the value chain of the cable TV industry itself with the distributors and the last mile operators (LMOs) expressing concern over CAS.

"CAS is not good for consumers, distributors and last mile operators. It will lead to too much of confusion in the market. Besides, broadcasters are not providing a la carte rates," says Cable Operators and Distributors Association (Coda) vice president Ravi Singh.

Clearly, the mood among the cable operators is not to rush with CAS. They would rather wait to see if direct-to-home (DTH) picks up once Tata Sky launches its service later in the year. Their fear of CAS is grounded in the fact that they will lose control of their subscribers to the multi-system operators (MSOs). And in the transparent system of digital cable, they will have to open up the unreported subscribers to the MSOs.

Cable operators' fear of CAS is grounded in the fact that they will lose control of their subscribers to the multi-system operators

_____****_____

To counter this "two-way defeat," the distributors and last mile operators are willing to vote CAS out. So how do they plan to compete with DTH? By dropping prices of analogue cable while throwing the offer open for digital service without CAS.

Quite a miserable situation to be in if you are a MSO as you will be hurt both ways. In the scenario of a price drop, the MSOs will have to absorb the slippage. And in case of digital cable without CAS, they will have to invest while facing the uphill task of luring subscribers away from analogue. Particularly in a market that has grown a spoilt breed of over 52 million (NRS says its 61 million) cable TV consumers who are used to a large menu of channels on a comparatively low monthly subscription fee.

The LMOs, in fact, have an open-ended strategy. If DTH starts pocketing cable TV subscribers, the gameplan is up for change. They will bend and cooperate with the MSOs, becoming a part of an organised distribution system with margins well-defined and structured.

Yes, broadcasters have been dilly-dallying on CAS. But MSOs have not made it any easier for them with such statements as "the true value of pay channels has come to the surface in Chennai where consumers have thrown them out."

_____****_____

But wait. Having enjoyed the spoils of a long grown unorganised industry, the distributors and LMOs do not want to let go so soon. Coda, an association of cable operators and distributors in Mumbai, is even talking of setting up a digital headend in a CAS regime. This is nothing new. In 2003, when the CAS topic was hot, Coda made similar rumblings that threatened but sounded empty. But this time, there is a significant change. There are around 50 distributors in Mumbai and they have invested in fibre. What this means is that they are connected by fibre with each other, except in small patches where work is going on, and have the infrastructure to put up a digital network.

"We will jointly invest in a headend and run it as partners," says Coda president Ganesh Naidu.

Talk is easier than action. Investments on setting up a digital infrastructure is not all; a sizeable chunk of money needs to be set aside for subsidising set-top boxes (STBs). Then there is the issue of professionalising customer care services like a call centre and technical team for maintenance. Besides, negotiations with broadcasters can be a tedious process. And who can forget management issues between as wide a body as the distributors and the LMOs?

Behind the garb of an entrepreneurial spirit may lie the hidden agenda of bargaining for a "pound of flesh." The distributors, who feel insecure of their role in a CAS system, want to ensure that their place is protected as a bridge between the MSOs and the LMOs. They, along with the MSOs, have been asking for more, as share in terms of commission from conversions into digital consumers.

The MSOs can take the blame for not ironing out differences with their distributors and LMOs. Even as the time frame for implementation of CAS is set for delay, there is no effort to fix the margins. The argument on offer: such margins can be settled only after the broadcasters come out with their proposals.

Yes, broadcasters have been dilly-dallying on CAS. But MSOs have not made it any easier for them with such statements as "the true value of pay channels has come to the surface in Chennai where consumers have thrown them out." Perhaps, MSOs went overboard thinking that this would win them support from the consumers and, hence, the government as it would imply cheaper cable subscription fees. The sad fate of CAS is that consumers didn't quite agree with this.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/11/vikas.jpg?itok=zxlytGcp
Republic TV, BTVI join hands for budget coverage

MUMBAI: Republic TV, spearheaded by Arnab Goswami, and Business Television India (BTVI) have entered into an alliance for content and programming around Union Budget 2018. The Republic TV- BTVI alliance promises to offer viewers a distinctive experience.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/11/nba_0.jpg?itok=C2zPkp_A
Mairu Gupta and the art of building the NBA in India

MUMBAI: For basketball fans worldwide, the US National Basketball Association (NBA) represents the mecca of the sport. But in India, the NBA has had its task cut out, what with cricket presenting a near impenetrable line of defence.

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/09/cnn-news18-year.jpg?itok=rbLMcF5z
CNN-News18 'Indian of the year' 2017 special Telecast on 9 and 10 December

MUMBAI: The awards night of the annual and flagship initiative of CNN-News18, ‘Indian of the Year – 2017’ will be telecasted on the 9 and 10 of December at 9:30 PM on the channel. The initiative, whichrecognizes and awards the exceptional contribution and achievements of the iconic Indian citizens...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/09/rodies.jpg?itok=2krWNvsY
Music channels bet on shows to boost viewership

MUMBAI: Seems like music channels are playing second fiddle to online music platforms when it comes to playing tracks. In an attempt to grab more eyeballs, pure-play music channels on television are moving away from the music content and focusing more on the youth-centric shows.

Television TV Channels Music and Youth
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/08/gossip.jpg?itok=xw4jvLW4
Zee TV leads Hindi GECs in week 48 of Barc ratings

MUMBAI: Zee TV emerged as the leader among Hindi general entertainment channels (urban + rural) dethroning Zee Anmol, according to Broadcast Audience Research Council’s (BARC) all-India data for week 48.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/08/Arnab-goswami2.jpg?itok=R7KgtjH3
Republic TV continues lead as genre ratings rise

BENGALURU:Two of weeks earlier, we had mentioned that the English News genre’s four week average ratings and weekly ratings have been falling since weeks 29 to 32 of 2017. The fall continued until week 47 of 2017 when the combined Broadcast Audience Research Council of India (BARC) weekly ratings...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/08/ttn_0.jpg?itok=OfnBLK2T
SPN India acquires TV, OTT rights for T10 Cricket League

MUMBAI: The newly introduced T10 Cricket league (TCL), which will be played at the UAE’s Sharjah Cricket Stadium, will be telecast live on Sony ESPN. The league is a four-day event running from the 14th to the 17th of December 2017.

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/07/robert.jpg?itok=jCBH7yyT
News Corp’s new ad network takes on Facebook, Google

Training its guns at the digital-ad dominance of Google and Facebook, News Corp has launched a platform, News IQ, to let advertisers reach audiences across all of its online properties.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/07/geet.jpg?itok=kvMhOlw7
Gracenote launches channel monitoring solution for broadcasters

MUMBAI: Gracenote, a Nielsen company, has launched its next-generation TV distribution monitoring and reporting solution developed specifically for the Indian TV market called TV Street Maps 2.0.

Television TV Channels People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories