MIB REQUESTS CABLE TV OPERATORS IN DAS IV TO APPLY FOR MSO LICENCE

The Ministry of Information & Broadcasting (MIB) has advised cable TV operators in digital addressable system (DAS) Phase IV areas to apply for multi-system operator (MSO) licence before 30 April 2016. The ministry has requested cable TV operators to apply early, as adequate time is required for issuance of registration. The set date for DAS Phase IV is on the 31st December 2016.

The ministry wants to ensure that the licences are granted well ahead of the cut-off date so that MSOs can complete set-top box (STB) seeding before the deadline. As per Rule 11A of Cable Television Rules 1994, any cable TV operator who wants to provide digital cable TV service must have a DAS licence.

To recall, during the 14th Task Force meeting on DAS Phase III and IV, MIB special secretary and Task Force chairperson JS Mathur advised the MSOs and broadcasters to start working on interconnection agreements for the final phase of DAS covering rural areas. Arguing that Phase IV is not far away and preparations should go in full swing from now itself to achieve the targets, Mathur said that the MSOs and broadcasters should not wait for the Phase IV cut-off date to sign interconnection agreements.

Jadoo Digital

Looking for the opportunity for CAM in Bangladesh, Jadoo Digital is one of the target TV operator.
Will be willing to share the income or pay necessary expense if anyone who can bring/bridge us the business.

Jadoo Digital launches hybrid video in Bangladesh with Verimatrix

Jadoo Digital First to Launch Hybrid Video Services in Bangladesh Secured by Verimatrix

• VCAS for DVB Hybrid Selected to Secure HD Content on DVB and OTT Networks in Emerging Market

NEW DEHLI, India — CASBAA India Forum 2016 — Verimatrix, the specialist in securing and enhancing revenue for multi-network, multi-screen digital TV services around the globe, today announced that Digi Jadoo Broadband Ltd, one of the most advanced pay TV distributors in Bangladesh, has implemented the Verimatrix Content Authority System (VCAS™) for DVB Hybrid to secure content for its new Jadoo Digital service. With this deployment, Jadoo Digital becomes the first to launch high-definition (HD), premium TV services via a hybrid DVB-C and over-the-top (OTT) network in the Bangladesh market. Jadoo Digital is the consumer-facing brand of Digi Jadoo Broadband Ltd, which has grown into one of the largest cable TV operators in Bangladesh.

VCAS for DVB Hybrid benefits Jadoo Digital with a novel approach to traditional broadcast content security that enables the operator to deploy a modern, cost-effective broadcast video system that can protect a true TV anywhere, anytime solution. VCAS for DVB Hybrid offers a cardless, software-centric approach that leverages the security functions within modern system-on-chip (SoC) families to provide a truly cost effective system. This single content authority approach provides flexibility and scalability for Jadoo Digital to expand its business models and stay ahead of the competition. Jadoo Digital has taken advantage of the integration between VCAS for DVB-Hybrid and CubiTV from Cubiware, a Warsaw, Poland, based subsidiary of TiVo Inc., which allows Jadoo Digital to choose middleware and security platforms independently based on their individual requirements and helps enable the entire ecosystem to be deployed within weeks.

“It was crucial that we implement a unified content security solution capable of reducing OPEX and CAPEX as we expand our business models in order to maintain our status as an industry leader in the region,” said Navidul Huq, director of Jadoo Digital. “Through its best-of-breed partner ecosystem, Verimatrix provides a unique advantage in enabling us to deploy a cardless STB security solution to optimize our time to market.”

“We are thrilled that VCAS for DVB Hybrid continues to prove its value as a single content authority solution for DVB hybrid services and as a cost-effective package to support the needs of operators in increasingly thriving global markets,” said Steve Oetegenn, president at Verimatrix. “The added benefit of VCAS for DVB Hybrid for Jadoo Digital is that its underlying VCAS architecture is flexible and scalable enough to provide a migration path for future upgrades. We look forward to fulfilling their long-term security needs as the market continues to evolve.”

Pakistan finalizes minimum standards for digital cable STBs

Pakistan Electronic Media Regulatory Authority (PEMRA) finalizes minimum standards for digital cable set-top boxes

ISLAMABAD — In pursuance of PEMRA’s endeavor to meet the cable TV Digitalization deadline of September 30, 2016 and to ensure the maximum facilitation and protection of subscribers’ rights, PEMRA has finalized the minimum standards / specifications for Digital cable TV set-top boxes.

The technical standards/specifications of Digital Set Top boxes have been drafted in line with international practices to safeguard the legitimate objective such as quality of service, uninterrupted operation of equipment, safety and competitiveness. The set-top box shall be compatible with and ensure compliance with the minimum technical standards as prescribed by the Authority.

PEMRA in its customized standards has made it compulsory for all cable operators and equipment providers to meet certain performance and audio/video decoding requirements, equipment conformity, electronic program guide and logical channel numbering, etc.

Once the draft standards are approved by the Authority in its upcoming meeting on March 30th, the same shall be available on PEMRA website for easy access of stakeholders including the public and subscribers.

Moreover, PEMRA is already pursuing Federal Govt., FBR and provincial governments to facilitate cable TV digitalization by offering Tax Holidays and exemptions on import of Digitalization equipment thus facilitating cable operators in meeting Digitalization deadline of September 30, 2016. The Chairman PEMRA has also held a meeting with the Chief Minister Punjab last week, whereas, a meeting with the Federal Finance Minister is scheduled next week to fetch maximum support for the cable operators converting to digitalization.

Pay TV subscribers in Portugal up 5% in 2015

Subscription TV service reports growth above the average of the last five years

According to Portugal’s Autoridade Nacional de Comunicações (ANACOM), at the end of 2015, the penetration rate of the subscription TV service was reported at 86.6 subscribers per 100 private households, increasing 4.1 percentage points compared to 2014. There were 3.52 million customers of the service, increasing by 167 thousand from the previous year, representing a growth rate of 5%, outpacing the average of the last five years (4.6%).

The service’s growth was mainly due to offers supported over FTTH/B (increasing by 185,100 subscribers). At the end of the year, FTTH/B represented, 23.1% of total subscribers (4.4 percentage points more than in the previous year), and became the second most important form of access, following cable.

The TV service based on cable technology decreased by 1.4% but remains the most important form of access (38.3%). Use of xDSL declined by 1.2% (representing the first decline reported for this technology since this information was first compiled), falling to third place among the networks supporting the service (21.3%). DTH (satellite transmission) follows with 17.4% of the total, increasing by 1.7%, the first annual increase since 2011.

The increase in bundled offers in 2015 resulted in an increase in the penetration of subscription television offers. At the end of the year, about 87.8% of subscribers received the service as part of a bundle of services.

In this period, about 78.1% of subscribers to the service had access to over 80 channels. The number of homes with subscription TV with access to premium channels remained in line with the previous year (18.6%) while reporting an increase of 3.2 points compared to 3rd quarter 2015.

The share of subscribers who used the different features of the subscription TV service increased by 5 percentage points in 2015, with about 67 percent of subscribers using at least one of the available features. Automatic recordings were used by 53% of customers, the most commonly used service.

During 2015, some of the most important Over-the-top services were launched in Portugal, including Netflix in October. This service has been included in some bundled offers. Before that, in September, NOS launched Nplay.

In 2015, total revenues derived from the subscription TV service (stand-alone and bundles that include this service) totalled 1.662 billion euros.

Grupo NOS continued to be the service’s leading operator with a 43.8% share of subscribers. MEO had a share of 40.7%, Vodafone 10.2% and Cabovisão 5.1%. Vodafone was the only provider to increase its share of subscribers (an increase of 2.7 percentage points) and is the service provider which gained the most subscribers in 2015 in net terms.

Skyworth deploys SERAPHIC TV Browser in smart TVs for Europe

Skyworth Deploys SERAPHIC TV Browser to March for the World Market

• Chinese TV manufacture Skyworth has selected the SERAPHIC’s Blink-based Sraf® TV Browser for its smart TVs in Europe

Skyworth, the advanced consumer electronics maker, has declared it’s complete adoption of SERAPHIC’s Blink-based Sraf®TV Browser in its connected TVs, aiming at providing superb visual effects and entertainment experiences.

Since 2010, Skyworth, the world’s leading TV brand and manufacturer, has devoted itself to large resources for pushing its original brand in overseas market. Among all lines of its products, SERAPHIC lays emphasis on smart TV portal because of its strategic value. “From Germany to Europe” has always been its overseas strategy. In order to fulfill the goal, Skyworth has formed the close partnership with SERAPHIC, a company characterized by strong spirits of innovation and continuous focus on research and development of new technologies and additionally has thorough insights to European and South American market.

Picture Copyright: Netrange

SERAPHIC, the rising star in digital TV industry, will provide Blink-based Sraf® TV Browser and tailored software solutions for Skyworth and they two will cooperate in global market, including South America, Europe and Taiwan, etc.

SERAPHIC, the leading digital TV browser technology provider, holds over 80% share in world’s Blink/Linux-based TV Browser market. It has served European and South American markets. Sraf®TV Browser supports about 1,000 smart TV APPs, accommodated by multiple mainstream TV Portals, and various TV standards including HbbTV 2.0, Freeview Play, BBC iPlayer, etc. Its Sraf® TV Browser has been ported to various TV and set-top box (STB) SoCs including MStar, Broadcom, Sigma Designs, Alitech, etc. Its market has covered more than 40 countries and regions, including Germany, France, Italy, Europe, Brazil, etc.

With the rapid growths of OTT and web-based services in consumer electronics, family users, who are no longer satisfied about receiving TV contents passively, are looking forward to interesting contents, easy interactions and intuitive user experience which fit perfectly into large screens and intelligent controlling of smart TV in their sitting rooms while they enjoy unlimited content and services by connecting with the internet. As a key Web engine technology provider, SERAPHIC meets with their needs and pushes digital TV to become an entertainment portal for future’s home internet.

Wang Ye, CSO of SERAPHIC, said, “Sraf® TV Browser has emerged in overseas digital TV industry and held a rising global market share. We are dedicated to providing the global market with cutting-edge and innovative software solutions that can fulfill major industrial standards, technical specifications and region-specific requirements in the global digital TV market space and to really continuously improving user experience. Focus on global leading innovations and prominent professionalism have made SERAPHIC an ideal partner whom Skyworth is searching for to expand its global market. We do believe that the profound collaboration between two parties will bring forth better products to and raise the bar in global digital TV markets.”

MTS gains in pay-TV market

Russia’s MGTS ended 2015 with a 25% share of the Moscow pay-TV market, up from 17% a year earlier.

The company, which competed an upgrade from ASDL to GPON last year, also saw it broadband market share increase from 28% to 30% over the same period.

Meanwhile, MTS, MGTS’s parent company, ended 2015 with 2,745,000 pay-TV (excluding DTH) subscribers nationally, up from 2,696,000 a year earlier.

Its triple-play ARPU in Q4 amounted to R284 (€3.7), up from R278 in the same period a year earlier.

MTS revenues in Russia in Q3 2014 stood at R102.5 billion (R98 billion) and its OIBDA was R41.1 billion (R41.4 billion), with OIBDA margin being 40.1% (42.2%).

Russia eyes new satellite system

Russia is likely to have a new satellite communications system giving access to digital TV and others services in moving objects by 2019.

Kommersant reports that it will be operated by Sky Global Communications (Sky GC), a company set up by Vyacheslav Kamnev, the former deputy general director of Gazprom Media.

It adds that Sky GC will build a satellite communications system named Rosinfokom, consisting of three satellites in high elliptical orbit and covering the whole of Russia, Arctic zone, coast of Canada, as well as China and India.

Its aim will to be to provide services to passenger planes, trains and cars, and it will have a potential audience of 50 million people.

Ericsson examines pay-TV landscape

Over one in five (22%) of ‘cord nevers’ are already paying for premium OTT content, according to Simon Frost, head of media marketing and communications, Ericsson.

Quoting the findings of the Ericsson Consumer Lab TV & Media 2015 Study, he added that it should be asked if they could be converted to pay-TV.

The study also revealed another interest statistic, namely that 50% of consumers who watch linear TV say they can’t find anything to watch on a daily basis. This, said Frost, is something that we should be worried about.

Two other interesting stats were that 61% of consumers watch TV & video on their smartphones, an increase of 71% since 2012, and that 42% think it is very important to watch their TV and video content wherever they are.

Frost also identified the elements of ensuring TV consumer delight as seamless experience; personalised discovery; immersive content; and constant evolution.

Digital TV, IPTV grow in Moldova

The number of subscribers receiving paid digital TV services in Moldova rose by 3.8% in 2015 to 138,100, according to data published by the regulator ANRCETI.

As a result, they accounted for over half of the total number of subscribers opting for pay-TV. The latter total, which stood at 274,900 as of the end of 2015, was 0.3% higher than a year earlier.

Of the 274,900, 75% opted for cable and the remaining 25% IPTV. More than half of all subscribers received digital TV via cable, with the rest IPTV.

The number of IPTV subscribers rise by 9.8% to 68,800, while revenues increased by 5% to over MDL58.1 million (€2.6 million). At the same time, the cable subscriber total fell by 1.5% to 206,100, with revenues falling by 9% to MDL97.5 million. ARPU for pay-TV services rose by 0.9% to MDL48.2.

Moldtelecom was the leading provider of pay-TV services with a market share of 28.9%. It was followed by Sun Communications (28%), TV Box (8.1%) and AMT (3.7%), with the remaining 79 providers having a combined share of around 31.3%.

IPTV overtakes pay satellite TV in Asia Pacific

The number of paying IPTV subscribers in the Asia Pacific region overtook paying satellite TV ones in 2015, according to a new report from Digital TV Research. Covering 22 countries, the fifth edition of the Digital TV Asia Pacific Forecasts report states that IPTV growth is far from over with 123.5 million subscribers expected by 2021. China will contribute 78.4 million IPTV subs (or nearly two-thirds of the region’s total) by 2021.

Source: Digital TV Asia Pacific Forecasts published by Digital TV Research.

Of the 314 million digital TV homes to be added between 2015 and 2021, 107 million will come from DTT. Conversely, the number of analog terrestrial homes will fall by 158 million. Digital cable will contribute 113 million additional homes, with analog cable losing 72 million. Pay satellite TV will supply an extra 30 million, with FTA satellite TV adding 10 million.

Simon Murray, Principal Analyst at Digital TV Research, explained: “So pay TV penetration will rise from 61.1% in 2015 to 69.2% in 2021, adding 127 million subs to take the total to 647 million. Even more impressive is that digital pay TV penetration will climb from 21.2% in 2010 to 44.9% in 2015 on to 68.3% in 2021. Digital pay TV subscribers will nearly quadruple from 164 million in 2010 to 639 million by 2021.”

He continued: “China will provide 329 million pay TV households by 2021, with India supplying a further 178 million. However, legitimate pay TV penetration will be lowest in Thailand (30.2%), Australia (31.7%) and Indonesia (32.6%).”

Despite the economic growth slowdown and devaluation of most currencies against the US dollar, pay TV revenues in the Asia Pacific region will reach $40.00 billion in 2021; up from $24.34 billion in 2010 and $31.94 billion in 2015. Digital pay TV revenues will triple from $14.4 billion in 2010 to $39.61 billion in 2021.

Pay TV revenues will more than double in five countries (Bangladesh, Indonesia, Laos, Myanmar and Pakistan) between 2015 and 2021. However, revenues will fall during this period in a further five countries (Australia, Hong Kong, New Zealand, Singapore and South Korea).

49 million U.S. homes have a TV connected to the internet

49 Million U.S. Internet Homes Now Own a Connected TV or Attached Content Device, According to The NPD Group

• As Streaming Video Content Surges, U.S. Connected TV Household Penetration Increases 14% Year-Over-Year

PORT WASHINGTON, NY — More than half (52%) of all U.S. Internet homes have at least one TV connected to the Internet, representing an increase of six million homes over the past year, according to The NPD Group Connected Intelligence Connected Home Entertainment Report.

Base: U.S. Internet households
Devices are connected to the Internet, not just capable.
Source: The NPD Group/Connected Intelligence Connected Home Entertainment Report

While the types of devices being used to connect these televisions to the Internet are varied (video game consoles, streaming media players, Blu-ray disc players, and the TVs themselves), the average connected TV home had nearly three (2.9) devices installed that they could use for programming from apps on their televisions.

These numbers are in lock-step with the macro-level rise in the number of connected devices* Americans own. In examining the entire connected device landscape, there are now 734 million in use within U.S. Internet homes, averaging 7.8 connected devices per home. This represents an increase of 64 million installed and Internet-connected devices over the past year. This momentum is, in part, being driven by the increased adoption of Internet-enabled televisions and streaming media players as well as the increased availability of streaming video content.

“Ownership of connected televisions and streaming media players is accelerating while the availability of streaming content is simultaneously expanding. These combined forces will continue to drive increased adoption of connected devices within U.S. households,” stated John Buffone, executive director, Connected Intelligence. “At the same time, as the number of households that have access to apps on TVs rises, so too do the business opportunities for content owners and distributors.”

Methodology

More than 5,000 U.S. consumers, ages 18 and older, were surveyed during Q4 2015. Connected TV, streaming media player, and tablet ownership survey results were calibrated to life-to-date unit sales from the NPD Retail Tracking Service.

* Total connected devices include laptops, desktops, smartphones, tablets, connected TVs, video game consoles, Blu-ray disc players, streaming media players, and iPod Touch. The number of installed and Internet-connected devices includes those that deliver broadband applications and must actually be connected to the Internet.

STB market worth $25.45 billion by 2022

Set Top Box (STB) Market Worth $25.45 Billion By 2022: Grand View Research, Inc.

SAN FRANCISCO — The global set top box (STB) market size is expected to reach USD 25.45 billion by 2022 according to a new report by Grand View Research, Inc. Technology proliferation and increasing demand for high-quality picture and sound is anticipated to boost global set top box market growth. Increasing demand for IPTV models in developed regions from North America and Europe has further bolstered industry growth. Additionally, abridged prices of smart TVs and growing availability of HD channels across all platforms are expected to push demand for advanced STB devices.

STBs can be categorized into cable, satellite, Internet Protocol TV (IPTV), Digital Terrestrial Television (DTT) and Over The Top (OTT) devices. Digital format transmissions provide better sound and picture quality, as well as an enhanced viewing experience in HD. Additionally, they provide interactive services such as Video On Demand (VoD), and the freedom to pay only for selected channels.

Recent administrative regulations pertaining to digitization in countries such as India are further expected to impel industry growth as these protocols can provide monetary relief to viewers, and in some cases, funding for broadcasters to enable a digital switch over to take place by a given deadline.

However, procurement costs and associated costs of pay channels are expected to pose as challenges for the industry. The inequality in demand and supply of devices across the world is expected to negatively affect the global market.

Further key findings from the report suggest:

• DTT STB segment dominated the global set top box industry contributing to over 25% of the market revenue in 2014. DTT broadcasts uses terrestrial (land-based) signals and enable efficient use of spectrum providing increased capacity over analog transmission, better quality images, and lower operating costs for broadcast and transmission after an initial upgrade investment.
• Vendors are offering various types of STBs, ranging from basic cable to satellite to the ones that record content via IP transmission such as in IPTV. Key operators are deploying new services in response to the threat against OTT service providers. The conventional digital model is emerging into a hybrid version supporting alternative sources of premium content such as OTT video services.
• Asia Pacific dominated the global set top box industry contributing to over 35% of the global revenue in 2014. IP transmission recording features and higher storage specifications are expected to ensure a steady growth in North American region. Initiatives by the government and authorities have led to an overall increase in the installation of devices in the select geographies.
• Asia Pacific regional STB industry is expected to grow at a CAGR of nearly 2.5% from 2015 to 2022. Major manufacturers in the industry are established in countries from the Asia Pacific region, such China and Taiwan, owing to higher production capacities and cheap labor. This has led to an increased awareness and adoption of STBs in the region.
• Key industry participants include Samsung, Skyworth, Cisco, Echostar, Amazon, Huawei, ADB, HUMAX, Coship, and Technicolor. Vendors are progressively adopting innovative distribution strategies such as authorized e-commerce retailers apart from traditional retail stores.

2.18 MILLION STBS SEEDED IN ANDHRA PRADESH AND TELANGANA

Priscilla Tirvengadum | March 9, 2016

Distributions platforms like cable TV, direct-to-home (DTH) and headend-in-the-sky (HITS) have collectively seeded 2.18 million set-top boxes (STBs) in digital addressable system (DAS) Phase III areas of Telugu speaking states of Andhra Pradesh and Telangana.

The information was provided by the MIB following an RTI enquiry seeking details of STBs seeded in the two states. Having seeded 1.15 million STBs in the two states, multi-system operators (MSOs) are marginally ahead of DTH.

On the other hand, DTH operators have deployed 1.01 million STBs while HITS service providers are way behind with just 12 980 STBs seeded.  As per the MIB’s updated list for total households covered under DAS Phase III in each state, Andhra Pradesh and Telangana had 2.05 million and 0.86 TV homes respectively.

MIB Joint Secretary R Jaya recently told the DAS Task Force members that the percentage achievement of DAS Phase III has increased to 90.44% as on 15 February 2016 from 76.45% as on 30 December 2015, as per MIS data.

Furthermore, Jaya also stated that the STB seeding by MSOs has increased to 12.43 million for the period ended 15 February from 6.91 million for the period ended 30 December 2015. After various updates, DAS Phase III covers 33.18 million TV households across 29 states and five Union Territories.

TIMES NETWORK TO USE AMAGI SERVICES TO ENABLE GEO-TARGETED ADVERTISING

Priscilla Tirvengadum | March 9, 2016

Amagi announced that the Times Network will use its services to enable geo-targeted advertising on five of its channels namely Times Now, ET Now, Romedy Now, Zoom, and Magic Bricks Now. Amagi’s technology will enable the broadcaster to split ad inventory and provide regional ad spots to different brands.

Times Network’s partnership with Amagi means that advertisers will also have the flexibility to buy regional ad spots on its channels at optimised costs. While this enables bigger advertisers to optimise their media spends, the smaller and regional advertisers can also advertise on national TV and target only markets of their choice and pay only for that.

‘’Our network specializes in delivering decision makers at the top end of the Indian population. Our audiences are comparable with English newspapers. With the ability to provide geo-targeted reach, we will now be able to offer city specific solutions complimentary to English newspaper campaigns at very efficient costs,” said MK Anand CEO of Times Network.

“The partnership with Times Network is an evidence of the industry’s belief in Amagi’s core value proposition. Our endeavour is to help industry players recognize innovative and efficient technology-driven ad solutions. A unique patented technological platform has helped us emerge as a reliable choice for TV broadcasters to enable geo-targeted advertising. This marks another landmark step in Amagi’s growth and we are bullish about delivering exceptional results.’’ added Amagi co-founder Baskar Subramanian.

To recall, among some of the channels that have used Amagi services include Zee TV, Zee News, Zee Cinema, Zee Bangla, IBN7, B4UMusic, B4UPlus and B4UMovies.

OSN sets stage for Ultra HD services

OSN Partners with Eutelsat for more HD channels and sets stage for Ultra HD services in the Middle East and North Africa

• OSN scales up resources at Eutelsat’s leading Middle East TV neighbourhood at 7/8° West

PARIS, DUBAI — OSN, the leading pay-TV provider in the Middle East and North Africa, is ramping up capacity on the powerful EUTELSAT 8 West B satellite operated by Eutelsat Communications (NYSE Euronext Paris: ETL). Additional capacity at the Middle East’s flagship TV neighbourhood will support more expansion for OSN, including new High Definition channels and the introduction of Ultra HD services.

The new contract was announced today at CABSAT 2016, the broadcasting convention taking place in Dubai from March 8-10.

OSN will take advantage of the additional capacity to introduce Ultra HD services that will bring the most cutting-edge TV experience to viewers in the Middle East, offering true immersion with an image quality four times richer than Full HD. OSN also plans to ramp up its HD offer, with eight new channels[1] announced recently and several new premium and exclusive channels to be launched soon.

Building on its 10-year partnership with Eutelsat, OSN has built a platform of premium content broadcast exclusively from the 7/8° West video neighbourhood that reaches into homes from Morocco to the Gulf.

Commenting on the new contract, Mark Billinge, CTO, OSN said: “We are enthusiastic about this additional capacity which will allow us to offer superior TV quality to our viewers. Our plans to move into Ultra HD reflect our continuous ambition to raise the bar and be at the forefront of the latest TV technology.”

Michel Azibert, Eutelsat’s Deputy CEO and Chief Commercial & Development Officer, added: “Following the launch in August last year of the powerful EUTELSAT 8 West B satellite, this contract marks a new milestone in the growth story of the most popular satellite TV neighbourhood in the Middle East. We are honoured to celebrate 10 years of collaboration with OSN and are committed to furthering our longstanding presence and strong partnerships across the region, including playing our part in the roll-out of HD and the launch of Ultra HD.”

U.S. IPTV subscribers declined for the first time in 2015

Major Pay-TV Providers Lost About 385,000 Subscribers In 2015

• Cable had the Fewest Sub Losses Since 2006, while Telco Subs Declined for the First Time

DURHAM, NH — Leichtman Research Group, Inc. (LRG) found that the thirteen largest pay-TV providers in the US — representing about 95% of the market — lost about 385,000 net video subscribers in 2015, compared to a loss of about 150,000 subscribers in 2014, and a loss of about 100,000 subscribers in 2013.

The top pay-TV providers account for 94.2 million subscribers — with the top nine cable companies having over 49.0 million video subscribers, satellite TV companies about 33.7 million subscribers, and the top telephone companies nearly 11.5 million subscribers.

Other key findings include:

• The top nine cable companies lost about 345,000 video subscribers in 2015 — compared to a loss of about 1,215,000 subscribers in 2014
  • Top cable MSO losses were the fewest in any year since 2006
• Satellite TV providers added 86,000 subscribers in 2015 (including gains from DISH’s Internet-delivered Sling TV) — compared to a gain of 20,000 in 2014
  • Not including gains from Sling TV, DBS providers lost about 450,000 subscribers in 2015
• The top telephone providers lost 125,000 video subscribers in 2015 — compared to a gain of about 1,050,000 net additions in 2014
  • Telco net adds in 2015 were the fewest in any year since the services started in 2006
• In 4Q 2015, the top pay-TV providers added about 110,000 subscribers — compared to about 90,000 in 4Q 2014
  • Top cable MSOs added about 125,000 subscribers in 4Q 2015 — their first quarter for net video additions since 1Q 2008
  • DirecTV net adds of 214,000 subscribers in 4Q 2015 were higher than in any quarter since 4Q 2010
  • AT&T U-verse lost 240,000 subscribers in 4Q 2015 — compared to a gain of 73,000 subscribers in 4Q 2014

“2015 marked the third consecutive year for pay-TV industry net losses, yet the total number of subscribers for major pay-TV providers (including DISH’s Sling TV) has declined by less than one million since the industry peaked in 1Q 2012,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “2015 also saw significant shifts for cable and Telco providers. The top cable providers cumulatively had their best year since 2006, and had about 870,000 fewer losses than in 2014. Telcos had about 1,170,000 fewer net additions than in 2014, and had their worst year since they began providing video services in 2006.”

                                  Subscribers at   Net Adds
Pay-TV Providers                     End of 2015    in 2015
----------------                  --------------  ---------
Cable Companies
 Comcast                              22,347,000   (36,000)
 Time Warner Cable                    11,035,000    43,000
 Charter*                              4,430,000    11,000
 Cablevision                           2,594,000   (87,000)
 Mediacom                                855,000   (35,000)
 Cable                                   364,150   (87,067)
 Other major private companies**       7,435,000  (153,400)
Total Top Cable                       49,060,150  (344,467)

Satellite TV Companies (DBS)
 DirecTV                              19,784,000   167,000
 DISH^                                13,897,000   (81,000)
Total DBS                             33,681,000    86,000

Telephone Companies
 AT&T U-verse                          5,640,000  (303,000)
 Verizon FiOS                          5,827,000   178,000
Total Top Phone                       11,467,000  (125,000)

Total Top Pay-TV Providers            94,208,150  (383,467)

Sources: The Companies and Leichtman Research Group, Inc.
* Charter revised its methodology for counting customers in 4Q 2015
** Includes LRG estimates for Cox and Bright House Networks, and Suddenlink in 4Q 2015
^ DISH totals and net adds in 2015 include Internet-delivered Sling TV service (which began in 1Q 2015)
Net additions reflect pro forma results from system sales and acquisitions, and reporting adjustments
Company subscriber counts may not solely represent residential households
Top pay-TV providers represent approximately 95% of all subscribers
Top cable companies do not include overbuilder WOW with 547,500 subscribers following a small system sale
Note that LRG consumer research finds that about 1% of households subscribe to both cable and DBS

DEN NETWORK TO SELL ALL STAKE IN STAR DEN JOINT VENTURE TO STAR INDIA

Priscilla Tirvengadum | March 17, 2016

Den Networks Limited (Den) has informed the bourses that it has entered into an agreement to sell its entire fifty per cent stake in its joint venture Star Den Media Services Private Limited (Star Den) to its partner Star India Private Limited (Star India).

The agreement price for Den’s stake is INR 403.5 million (US$ 6 million) and Star owns an equal share in the joint venture.  After completion of the share transfer to Star, Den Network Limited will cease to be a shareholder in Star DEN. The joint venture agreement between the parties will then be terminated.

To recall, Star DEN was formed in 2008 as an equal joint venture between Star and DEN with the vision to create efficiencies in the distribution sector. The joint venture agreement was signed on 14 January 2008 and was restated on 26 May 2011. The company was distributing Star India channels via all fixed networks including cable, DTH, IPTV, HITS and MMDS. Apart from Star channels, it was also distributing NDTV channels.

Furthermore, in 2011, the company formed an alliance with another distribution joint venture, Zee Turner, to form MediaPro, a pay TV with most of the popular channels. MediaPro ceased operations in November 2014 in the after the Telecom Regulatory Authority of India’s (TRAI) regulation on content aggregators disallowed bundling of channels of more than one broadcaster. Following the split, Star and Zee set up their own distribution teams.

Russia had over 2,300 TV channels at the end of 2015

European Audiovisual Observatory publishes free new report on Russian audiovisual industry.

• Russian TV market tops over 2,300 operating TV channels at the end of 2015: Gazprom Media, VGTRK and National Media Group largest media holdings
• Pay-TV as the cornerstone of Russian TV market: over 2/3 of Russian TV households subscribed to pay-TV in 2014 with digital segment and IPTV as main future drivers
• Rapid growth in Russian VoD market: more than 40 VoD services available at the end of 2015 and dominance of transaction and subscription business model

These findings come from a brand new report, “FOCUS on the Audiovisual Industry in the Russian Federation”, just published by the European Audiovisual Observatory (part of the Council of Europe in Strasbourg) together with Nevafilm Research. It can be downloaded on our website for free in English and in Russian.

The report provides a snapshot of the Russian audiovisual industry in 2014-2015 detailing key trends in the television and on demand sector supplemented by detailed information about the sources of industry financing and an overview of the legal framework.

Russian TV market tops over 2300 operating TV channels at end of 2015: Gazprom Media, VGTRK and National Media Group largest media holdings

A total of 2,370 TV channels were identified as operating and accessible in Russia and/or having licences to broadcast in the country, according to the report. Of these, at least 520 are regional representatives of national networks, the largest of which (with over 50 regional partners each) are REN TV, TNT, Rossiya 1, CTC, and Rossiya 24.

Over 80% of Russian channels are in the hands of private companies, 13% are state-owned, and 5% have combined ownership (some of their shares are held by national or regional authorities). At the start of 2016, the major media holdings, owning the largest number of channels, were Gazprom Media (owning a total of more than 50 channels including the Red Media and ProfMedia holdings), VGTRK (30 channels owned partially or outright, plus regional television and radio companies), and National Media Group (25 channels, including Discovery Communications and Turner Broadcasting Systems).

A third of TV channels operating in Russia at the end of 2015 were general regional channels (broadcasting local news and their own entertainment programmes, as well as independently purchased content). Channels devoted to music and entertainment and lifestyle programming make up 21% of the currently operating Russian TV channels. The third most popular group of channels is those broadcasting films and series. It is worth noting that national channels broadcasting generalist content, such as Channel One, Rossiya 1, NTV, Peterburg – 5 kanal, REN TV, and TV Centre account for only 3% of the range available to audiences.

A small proportion of the channels studied (60 – 8% of the total) are HD versions of both free terrestrial and pay-cable channels available to digital TV users. Meanwhile, there is a total of 121 HD channels in the Observatory’s MAVISE database, meaning half of them do not have standard versions accessible to viewers of analogue TV. The vast majority of HD (97 out of 121) and 3D channels (5 out of 6) are pay channels.

Overall, more than half of all the channels available in Russia are pay channels, and a large proportion of free-to-air channels are provided by regional terrestrial television and radio companies. Hence, in every single region of the country viewers must pay to access the majority of TV channels.

Pay-TV as the cornerstone of Russian TV market: over 2/3 of Russian TV households subscribed to pay-TV in 2014 with digital segment and IPTV as main future drivers

The report states that 68% of households subscribed to pay-TV in 2014, 8% more than the year before. The highest saturation of pay-TV was seen in the Central and Northwestern districts (80% and 77%, respectively). Meanwhile, the fastest growth rates were observed in Siberia (+15%), Central Russia and the Southern Federal District (+14%), and in Russia’s Far East (+13%). The first and latter in this list are also the ones with the most potential for further development (due to their relatively low saturation level).

The total number of pay-TV subscribers in Russia reached 37.7 million in 2014, according to report figures. However, this data does not account for the fact that one family may have several subscriptions. The size of the pay-TV market in 2014 is estimated at RUB 61.2 billion.

Market growth by subscriber numbers is gradually slowing down (due to market saturation): in 2014, the market grew by 7–8%, whereas this indicator had previously been in double figures. Satellite television is the growth leader in absolute terms but there has been a notable stagnation in the cable pay-TV segment in Russia.

The main trend in pay-TV over the next few years will be a growing subscriber base in the digital segment and in IPTV. Growth will be moderate, though rates of growth could vary significantly between individual operators. The significant network modernisation observed over the past two to three years is not expected to continue, due to financial and economic difficulties in the market.

Rapid growth in Russian VoD market: more than 40 VoD services available at the end of 2015 and dominance of transaction and subscription business models

Since 2011, the Russian VoD market has experienced rapid growth which is characterised by an increase in the number of services and the size of their catalogues, as well as the platforms via which VoD can be accessed. At the same time, from a business-model point of view a ‘backwards movement’ began: from the dominant ad-based model towards transaction and subscription models.

According to an analysis of the European Audiovisual Observatory’s updated MAVISE database, by the end of 2015 there were more than 40 VoD services available in Russia, specialising in professional feature-film and television content (this does not include catch-up versions of TV channels, news portals, and specialist children’s services such as deti.ivi.ru, Internet music channels, and network versions of popular television programmes such as Dom-2 and KVN, or sites exclusively featuring user-generated content (UGC) and unlicensed content).

The leader in terms of user numbers is ivi.ru (around 38 million viewers); this service receives up to 200,000 views per month on average (using the ad-based, subscription, and transactional models), which is ten times more than its closest competitors. Meanwhile, Okko, which bases its business on paid services, takes the lead in terms of revenue, with earnings of RUB 630 million in the first half of 2015.

The arrival of global VoD players on the Russian market has not led to significant changes: at the end of 2012, iTunes and Google Play launched in Russia, followed in 2013 by Amediateka, the official distributor of content from HBO, and the launch of a range of other leading international producers; the international giant Netflix entered the Russian market in January 2016 (Russian audiences are initially being offered a limited content library and an English-language interface). However, it is not expected that the domestic leaders (ivi.ru, Megogo.net, Okko, and Tvigle.ru) will be forced out of their positions by these foreign competitors.

VOD is still growing, and it is doing so faster than other segments of the audiovisual industry. In the future, one can expect to see subscriber services strengthen their position and further growth through mergers and acquisitions.

Sluggish pay-TV growth expected in Latin America

Pay-TV revenues [subscriptions and PPV] in Latin America will grow by only 9% (or up by $1.6 billion) between 2015 and 2021, according to the fifth edition of the Digital TV Latin America Forecasts report.

Economic woes are one reason for this slowdown, but market maturity is another.

Satellite TV will continue to be the largest pay-TV platform, with revenues reaching $13.1 billion in 2021, up from $12.6 billion in 2015. Cable TV revenues will be $5.6 billion in 2021, up from $5.1 billion in 2015.

Simon Murray, principal analyst at Digital TV Research, said: “Digital cable TV revenues overtook analog cable in 2014 and IPTV will pass analog cable by 2020. IPTV revenues will grow by the same amount as satellite TV and cable TV over this period.”

Brazil ($7.3 billion in 2021) will remain the top country by pay-TV revenues by some distance, followed by Mexico ($3.4 billion) and Argentina ($2.2 billion). These three will collectively take two-thirds of the total for the 19 countries covered in the report. However, revenues will fall in Brazil, Puerto Rico and Venezuela.

Pay-TV penetration will reach 50.6% by 2021, up from 45.0% at end-2015 and 28.7% at end-2010. This means 14 million more pay-TV homes between 2015 and 2021; taking the total to 82 million. This compares to more than 27 million pay-TV subscriber additions between 2010 and 2015.

Brazil will provide 4.7 million of the additions between 2015 and 2021 and Mexico 3.7 million. However, Brazil added 9.6 million new pay-TV subscribers between 2010 and 2015, with Mexico bringing in a further 7.1 million.

Puerto Rico will record 83% pay-TV penetration by 2021, with four more countries [Argentina, Honduras, Panama and Venezuela] above 70%. However, five countries [Brazil, Dominican Republic, El Salvador, Guatemala and Peru] will be below 40%.

Extracting analogue cable, the number of digital pay-TV subscribers will rocket from 19.5 million in 2010 (13.7% penetration) to 52.3 million in 2015 (34.6%) to 80.9 million in 2021 (49.8%).

For more information on the fifth edition of the Digital TV Latin America Forecasts report, please see the Broadband TV News webshop.

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Tele Columbus on growth course

Germany’s third-largest cable operator Tele Columbus reports strong growth following its acquisitions of Primacom and Pepcom which have been included in the corporate figures since August 1 and December 1, 2015 respectively.

The company which has been serving 2.44 million customers at the end of 2015 has increased its number of internet customers by 99,000 to 462,000 in Q4 2015. The number of telephony customers rose by 75,000 to 427,000 while the number of premium TV customers grew by 11,000 to 426,000.

In total, the Tele Columbus network reaches 3.6 million households. 61% of the base has been upgraded with a return channel for internet and telephony.

Internet service provider United Internet (1&1, GMX, web.de) has recently become the largest shareholder in Tele Columbus with a 25.11% stake following the approval of the deal by the German anti-trust authority.

Pay TV households in Central America grew faster than the rest of Latin America in 2015

Thursday, March 17th, 2016 

In 2015 Pay TV HH in Central America grew faster than the rest of Latin America

The region covered by Costa Rica, El Salvador, Guatemala, Honduras, Panama and Dominican Republic reach 3.7 million Pay TV subscribers by end of 2015, continuing its growth trend. The total subscribers by the end of Q4 2015 represents a growth of 13.5% compared with the same period for the previous year.

The main leaders in the region are Claro (America Movil) and Tigo (Millicom), reaching 31% and a 24.3% of the market respectively.

Currently, the main driver in terms of subscribers is Costa Rica, and along with Panama they are the most mature markets. This leaves the rest of the region with great perspective for growth.

Dataxis believes that DTH services will continue to push the market, mainly due to the advantages that the service can offer in terms of coverage. Digital Cable services will also continue to grow, as they are a convenient way for bigger actors to provide triple play solutions.

Russia and Belarus seek deeper cooperation

Russia’s Minister of Communications and Mass Communications Nikolai Nikiforov has met with his Belarusian counterpart Sergei Popkov to discuss further bilateral cooperation between the two countries.

The parties also discussed the coordination of national satellite networks, access of Belarusian software to the Russian market and approaches to the formation of a single digital space in the Eurasian Economic Union (EAEC).

Other attendees at the meeting were representatives of Roskomnadzor, Rossvyaz, RSCC and Gazprom Space Systems.

As previously reported in Broadband TV News, Belarus launched its first communications satellite, Belintersat-1, this January.