GECs
Star’s RIO approach should form template for other broadcasters: MPA
MUMBAI: Leading broadcaster Star India’s move towards a more transparent and uniform template for distribution deals with cable multi-system operators (MSOs) should form a template for other major broadcast groups (i.e. Zee, Network 18 / IndiaCast, Discovery) to follow over 2015.
According to a report released by Media Partners Asia (MPA), over the next few months, all eyes will be on the MSO’s readiness to rollout channel packages and related consumer acceptance of price increases as well as potential churn to DTH.
Also critical will be the rollout of prepaid services for legitimate pass through of subscription revenues to MSOs and broadcasters. “If executed successfully, these new mechanisms will help bring in long-awaited addressability across the cable industry, reduce dependence on carriage fees while also drive ARPU growth to improve economics for all industry stakeholders,” the MPA reports says.
Star’s decision of providing channels on Reference Interconnect Offer (RIO) came after the Telecom Regulatory Authority of India (TRAI) came up with its regulation to unbundle channel aggregators, which further raised the prospect of a level playing field between broadcasters and distributors.
The unbundling of aggregators, according to MPA, exposed platforms favoured by vertically aligned broadcasters, thereby bringing to the fore the disparity of content costs amongst operators.
In the midst of the dissolution of top channel aggregator MediaPro in April 2014, major MSO Hathway levied a charge of disparate pricing by MediaPro in DAS (Digital Addressable System) markets, offering favourable channel rates to Den, which had an effective 25 per cent stake in MediaPro, as well as Siti Cable, a sister concern of the Zee group. “Hathway, despite having more digital subscribers in DAS markets than both Den and Siti Cable was asked to pay a ~15 per cent higher cost per sub or CPS (at Rs 35 per sub per month) for MediaPro channels,” the report reveals.
Hathway referred the matter to Telecom Disputes Settlement and Appellate Tribunal (TDSAT), claiming a refund of Rs 700 million from MediaPro.
It was In November that Hathway, which had been receiving channels from Zee on a RIO basis, settled with Zee and signed a CPS-based agreement.
Star, however, to bridge the divide on disparate pricing for operators, subsequently filed an affidavit making all its channels (including sports channels) available only at RIO rates. And since 10 November, all Star channels have been available, on a RIO basis, for cable operators.
Implications of Star’s distribution strategy for DAS markets
According to MPA, Star’s filed RIO rates are steep and are not reflective of the actual fees collected from subscribers. As a result of this Star rolled out an incentive scheme (based on number of channels carried, logical channel number and channel penetration) for MSOs. “The existing DAS markets remain characterised by an absence of tiers and limited addressability to monetise on subscription income; therefore, MSO dependence on carriage in these markets remains high,” says the report.
As per MPA, Star’s “RIO-only but incentivised distribution approach” is a bold step as it deprives cable operators of carriage fees. “In addition, we expect Star’s content cost for all MSOs to increase by at least 15-20 per cent, at a minimum. Therefore, in order to absorb the increase in net content costs and benefit from available price incentives, MSOs have been forced to introduce tiering and implement rate hikes in DAS markets,” highlights the report.
GECs
ZEEL overhauls sales structure to chase growth across TV and digital platforms
New structure sharpens digital push as viewing habits fragment fast
MUMBAI: Zee Entertainment Enterprises Ltd. is reshuffling its sales playbook as it looks to keep pace with a fast-changing media landscape, where audiences are scattered, screens are multiplying and advertisers are following the data.
According to media reports, the rejig is anchored in the company’s push to build a more integrated, data-led monetisation engine, one that can straddle both traditional television and fast-growing digital platforms with equal ease.
At the heart of the move is a reworked sales architecture designed to deliver cross-platform solutions. With connected TV gaining ground and digital consumption surging, ZEEL is aligning its teams to move quicker, think broader and sell smarter.
The restructuring is being led by chief operating officer, advertisement revenue, Sandeep Mehrotra, at a time when the company says it is seeing tremendous growth. The idea is simple: match the right talent to the right opportunity in a market that is anything but static.
As part of the overhaul, several long-serving executives have been elevated to chief sales officer roles across regions and content clusters. Sanjoy Chatterjee will head the east market, while Gunjarav Nayak takes charge of the west along with high-margin verticals such as hmg, brand works, intellectual properties and digital sales. Rajnish Gupta will oversee bengaluru and chennai markets alongside the kannada and tamil clusters.
In other key moves, Divjyot Dhanda will lead hyderabad and kochi markets and manage zee tv, zee keralam and the telugu cluster. Roshan Vasu Kotian will supervise a diverse portfolio including Zee Marathi, &tv, Zee Punjabi, Zee Anmol, Big Magic and Zee Biskope.
The company is also strengthening its bench, appointing national sales heads across retail, regional clusters, digital and brand solutions. Ankur Kapila’s appointment to lead digital sales signals a sharper push into a segment that continues to outpace traditional formats.
Behind the scenes, dedicated strategy and operations roles have been carved out for both linear and digital businesses. Nitin Shetty, Rajkiran Shrivastav and Priya Nambiar will take on key responsibilities to ensure the new structure runs with precision.
The broader aim is clear. ZEEL wants a bigger slice of advertising budgets that are steadily drifting towards digital and connected TV ecosystems. By integrating its offerings, the company hopes to deepen client relationships while unlocking new revenue streams.
The new structure takes effect immediately, with Mehrotra continuing to report to chief executive officer Punit Goenka and steer the company’s advertising revenue strategy. Senior executive Laxmi Shetty will support the transition, with her revised role expected to be announced soon.
In a market where content is everywhere but attention is scarce, ZEEL’s latest move is less about rearranging the org chart and more about staying in the game.
