GECs
Digital platforms to lead future growth
MUMBAI: The direct-to-home (DTH) market is set for an explosion. Revenues from DTH operations is expected to touch Rs 40 billion in 2010, up from Rs 3.8 billion in 2006.
Speaking today at the first of a series of interactions between the television industry and media, Dish TV CEO Sunil Khanna said the surge in revenues was based on a projected subscriber base of 11 million, as compared to two million in 2006.
The average revenue per user (ARPU) is expected go up from Rs 200 in 2006 to Rs 300 in 2010. The cable TV penetration would increase from 53 million to 77 million households during this period, Khanna said.
He was addressing the first of the Blink knowledge series on “DTH and Distribution,”organised by Tam Media Research and Press Club, Mumbai. The other two sessions will be on news channels and regulation of the TV industry, spread over the next two Fridays.
The entry cost was a major hindrance to the growth of DTH subscribers, Khanna said. But after Dish TV slashed hardware and software prices by half, the offtake has speeded up with 2,000 activations being added dup every ay.
“We have touched close to 250, 000 subscribers. Earlier we were just adding up 300 subscribers a day,” he said.
With popular channels from the Star and Sony bouquet not on Dish TV platform, the growth of the DTH platform has been affected. “Some of the popular channels are not available on our platform. The challenge for the regulator is to get the regulations implemented,” Khanna said. DTH operators are now required to give an undertaking that they would not deprive their content to other competing platforms at the time of being issued a licence, he added.
Dish TV will launch pay-per-view and near video-on-demand (NVoD) by June-end, he said. On the content side, the plan is to offer 150 channels by the end of the year. Currently, Dish TV offers 117 channels to its subscribers.
Speaking on the opportunities thrown up by digital TV distribution, Win Cable and ETC Networks CEO Jagjit Singh Kohli said the market was on the verge of witnessing revolutionary growth. DTH and digital cable TV have huge potential in India, even though there would be competition from IPTV players like Reliance and Tatas. State-owned telecom operators BSNL and MTNL were also gearing up for the challenge.
“The traffic of channels is more than the capacity on the analogue cable systems. So digital is the only way forward,” he said.
But how prepared are the rating measurement agencies? TAM announced that it was technologically ready to meet the new broadcast environment emerging in India and had the capability to measure TV audiences across diverse technology platforms like DTH and broadband. “Irrespective of any delivery platform, TV viewership can be measured through our digital peoplemeters. Our parent company has developed the new digital peoplemeters called TVM 5,” said TAM CEO LV Krishnan.
The session was also addressed by PanAmSat managing director N Sampath. Satellite & Cable TV editor Dinyar Contractor moderated the session.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
