Cable TV
DTH to benefit, Reliance Jio to intensify competition in DAS Phase III: Edelweiss
NEW DELHI: Broadcasters are obviously clear winners, but the direct to home (DTH) platforms may ultimately become the greatest beneficiaries of Phase III of digital addressable system (DAS) by garnering incremental market share of more than 50 per cent.
According to Edelweiss Securities Ltd, broadcasters will be one of the safest and most attractive plays on the digitisation theme, irrespective of higher subscriber additions by DTH or MSOs. “We expect a one-year lag for subscription revenue to flow (starting FY18) from the newly digitised subscribers,” Edelweiss said in its analysis of DAS Phase III.
“In our view, analogue signals will gradually switch off and substantial roll out of Phase III digitisation will take at least three to four quarters driven by mass media ads and proactive steps by DTH players, national MSOs & the regulator,” the firm said.
However, this view is contrary to the Chrome Data Analytics’ claim of 70 per cent digitisation in Phase III.
With six states (Assam, Telangana, Andhra Pradesh, Maharashtra and Odisha and Tamil Nadu) stalling Phase III digitisation by eight weeks or more with High Court orders, Edelweiss says, “Uncertainty persists; we expect many more states to follow suit.” In Tamil Nadu, the stand-off between Arasu and the Information & Broadcasting Ministry will delay digitisation, as was the case with Chennai earlier.
Moreover, Edelweiss believes Reliance Jio’s entry in cable TV will intensify competition in the space. “Overall, we expect Zee, Sun TV, TV18 and Dish TV to be bigger beneficiaries of Phase III digitisation over the long term.”
In Phase I and II cities, MSOs were able to retain around 75 per cent of incremental market share, while DTH players managed to garner only 25 per cent.
However in Phase III markets, Edelweiss says regional MSOs will have to incur substantial capex to make the cable infrastructure digital ready. “We believe DTH players will enjoy natural advantage over regional MSOs in Phase III markets.”
Further, voluntary digitisation by national MSOs in Phase III markets, learnings from Phase I & II digitisation and parts of Phase III areas being contiguous with Phase I & II markets put national MSOs in better position than regional MSOs.
With the rollout of Reliance Jio, Edelweiss expects “competition to intensify in cable TV business. Cashing in on its strong balance sheet, RJio will fuel further competition in cable TV (free STBs, bundled services) in Phase I and II markets. We expect RJio’s entry to change the industry dynamics led by introduction of packaging and prepaid billing.”
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
