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
Cable TV
Hathway Cable appoints Gurjeev Singh Kapoor as CEO
Leadership change comes as cable TV faces shrinking subscriber base and modest earnings pressure
MUMBAI: Hathway Cable and Datacom has tapped industry veteran Gurjeev Singh Kapoor as chief executive officer, marking a leadership pivot at a time when India’s cable television business is under mounting strain.
Kapoor will take over from Tavinderjit Singh Panesar, who is set to retire in August after a long innings with the company. Panesar, chief executive since 2023, has held multiple leadership roles at Hathway, including his latest stint beginning in 2022.
Kapoor brings more than three decades of experience in media and entertainment. He most recently led distribution at The Walt Disney Company’s Star India business, now part of JioStar. His career spans television distribution and affiliate partnerships, with stints at Sony Pictures Networks India, Discovery Communications and Zee Entertainment.
Panesar, with over three decades in the industry, has worked across strategic planning, distribution and business development in media, broadcasting and manufacturing. His past associations include ESPN Star Sports, Star India, Apollo Tyres and JK Industries.
The transition lands as the cable sector grapples with structural disruption. Traditional operators are losing ground to streaming platforms, while telecom and broadband players tighten the squeeze with bundled offerings.
An EY report estimates India’s pay-TV base could shrink by a further 30 to 40 million households by 2030, taking the total down to 71 to 81 million. The slide follows a loss of nearly 40 million homes between 2018 and 2024, a contraction that has already wiped out more than 37,000 jobs in the local cable operator ecosystem.
Hathway’s numbers reflect the strain. The company reported a consolidated net profit of Rs 93 crore for FY25, down from Rs 99 crore a year earlier. Revenue inched up to Rs 2,040 crore from Rs 1,981 crore. As of December 2025, it had about 4.7 million cable TV subscribers and roughly 1.02 million broadband users.
Kapoor steps in with a familiar brief but a shrinking playbook. In a market where viewers are cutting cords faster than companies can reinvent them, the new chief executive inherits a business fighting to stay plugged in.
