English Entertainment
Boom time for HD channels in India
The High Definition (HD) TV channels landscape is rapidly expanding in India. Amongst the various genres available today, the English general entertainment and movie channels genre is still a fragmented space and networks in their quest to stand apart from the nearest ranking rival, rely excessively upon content, marketing and a host of options among others.
While not much is achieved in the process, the game of throne continues as networks try to outdo one another. A potent yet common weapon that networks are now heavily relying on is by launching HD channels.
What is augmenting well for these networks is the demand by consumers for content that is best experienced in high definition. Since almost all the content in the English category is produced internationally, it makes sense in delivering it to consumers in HD only so that production values receive their due credit and viewers experience it at its best. This hunger for HD has very well transcended into networks now launching or sensing business opportunities by launching new HD channels. In some cases, an HD feed has been introduced to complement the existing Standard Definition (SD) feed. Digitisation will only ensure that the consumption of high definition shoots up further.
Networks and their HD channels
Star India will soon be launching two new HD English general entertainment channels (GECs). Its soon to be launched channel, Star Movies HD Select for a span of one year (365 days) has a content library of 365 movies – one for each day. About 50 per cent of the content comprises award winning Oscars and Golden Globes titles. To name a few, the channel has The Fault In Our Stars, Birdman and The Theory of Everything in its kitty.
Star will also launch another new channel Star FX HD to compliment the SD feed of FX. The content of FX currently comprises Madmen, Seinfeld and the animated series Family Guy. Other HD channels from the network include Star World Premiere HD, Star World HD and Star Movies HD in addition to eight other HD channels in various genres like sports and Hindi movie and GEC.
Multi Screen Media (MSM) is not far behind. With channels such as Pix, Pix HD and AXN, it is a strong player in the English movie and GEC space. On 6 April this year, the network sensed an opportunity by launching AXN HD to go along with the SD feed. For the man behind the launch, Pix and AXN EVP and business head Saurabh Yagnik the onset of digitisation and a strong audience base spending more time on special interest channels, made sense for the launch of the new feed. “While the shows will be same on the two channels, we will be tweaking some of the content for the HD feed. We could also have certain exclusive content for the HD feed in the future,” Yagnik had earlier told Indiantelevision.com. MSM also has two HD channels in the Hindi GEC and sports category.
On the other hand, Zee Entertainment Enterprises Ltd. (Zeel) is also looking at strengthening its HD portfolio. The network will soon launch a new HD channel in the English GEC space called Zee Cafe HD to compliment its SD feed. Besides this, Zeel has five other HD channels in its channel portfolio. The content on Zee Café currently comprises shows such as Two and a Half Men, Desperate Housewives and Secrets and Lies amongst others.
Times Network, which operates channels like Movies Now and Romedy Now is another mighty contender. Speaking to Indiantelevision.com earlier, Times Network senior vice president and English entertainment cluster head Vivek Srivastava had said that its new channel, Movies Now+ was the HD version of the SD feed but it did have some differentiating content from the SD feed. It simulcast movies on both feeds such as The Wolf Of Wall Street, which is going to be showcased on 26 April 2015.
The increasing growth of premium ad free channels such as HBO Hits and HBO Defined too have resulted in aiding subscription revenues for the English entertainment genre. Strong and popular content such as Game of Thrones today is synonymous with the HBO network.
Growth of HD Channels in India
From the meagre three HD pay TV channels in 2010, the number has shot up to 34 in 2014, according to the Telecom Regulatory Authority of India’s (TRAI) 2013-2014 annual report. The number jumped to 22, 31 and 33 for the years 2011, 2012 and 2013 respectively. With impending launches of English movie and GEC channels this year, this number is only going to be on the rise going forward.
The DTH factor
Value Added Services (VAS) and HD channel penetration are strong revenue generators for Direct to Home (DTH) operators. Videocon d2h CEO Anil Khera was quoted in the FICCI-KPMG report for 2015 as saying, “The boom in the panel TV industry has been a key growth in HD channel viewership. The viewers are ready to pay a premium price for HD channels. With the right pricing and packaging for these channels, HD channels can achieve faster penetration.”
As per the report, there are four million HD subscribers, which account for 10 per cent of all DTH subscribers, whereas 15 to 20 per cent of incremental subscribers in 2014 were HD subscribers. “HD adoption continues to drive ARPU growth for DTH players with the average ARPU of HD subscriber at 1.5 to 2X the ARPU of a non HD subscriber,” states the report.
Conclusion
Premium HD channels recorded a ten-fold top line growth with DTH accounting for over 95 per cent of the premium channel subscriber base according to the 2015 FICCI KPMG report. The success of HD viewing thus, is not just a mighty boon in for broadcasters alone, (where the Ad Ex share for the space in 2014 was at 4.6 per cent) but also for DTH operators.
As panel TV sales figures were expected to touch approximately eight million units in 2014, of which 55 per cent was expected to have been HD panel TVs, the rise is only going to be vertical in the coming years. With the share of HD and 4K TV sales expected to contribute to over 80 per cent by 2019, broadcasters’ key agenda will definitely be upping their HD channels offering. Moreover, the fact that DTH operators are more than happy to increase their HD bouquet, the growth story for HD viewing and consumption in India has only just begun.
UK: The aerial is losing its grip. As broadband becomes the default way Britons watch television, the UK is edging towards a decisive, and divisive, question: should Freeview be switched off by 2034? The issue, highlighted in reporting by The Guardian, has exposed deep fault lines over access, affordability and the future of public service broadcasting.
For nearly 25 years, Freeview has delivered free-to-air television from the BBC, ITV, Channel 4 and Channel 5 to almost every corner of the country. Even now, it remains the UK’s largest TV platform, used in more than 16m homes and on around 10m main household sets. Yet the same broadcasters that built it are now pressing for its closure within eight years.
Their case rests on a structural shift in viewing. Smart TVs, superfast broadband and the Netflix-led streaming boom have pulled audiences online. Advertising economics have followed. By 2034, the number of homes using Freeview as their main TV set is forecast to fall from a peak of almost 12m in 2012 to fewer than 2m, making digital terrestrial television, or DTT, increasingly costly to sustain.
But critics say the rush to switch off risks abandoning those least able, or least willing, to move online.
“I don’t want to be choosing apps and making new accounts,” says Lynette, 80, from Kent. “It is time-consuming and irritating trying to work out where I want to be, to remember the sequence of clicks, with hieroglyphics instead of words. If I make a mistake I have to start again.”
Lynette is among nearly 100,000 people who have signed a “save Freeview” petition launched by campaign group Silver Voices. She fears the government is about to “take [Freeview] away from me and others who either don’t like, can’t afford, or can’t use online versions”.
Official figures underline the fault lines. A report commissioned by the Department for Culture, Media and Sport estimates that by 2035, 1.8m homes will still depend on Freeview. Ofcom’s analysis shows those households are more likely to be disabled, older, living alone, female, and based in the north of England, Wales, Scotland and Northern Ireland.
Freeview is owned by the public service broadcasters through Everyone TV, which also operates Freesat and the newer streaming platform Freely. After two years of review, DCMS is expected to set out its position soon, drawing on three options proposed by Ofcom: a costly upgrade of Freeview’s ageing technology; maintaining a bare-bones service with only core PSB channels; or a full switch-off during the 2030s.
The broadcasters have rallied behind the third option. They argue that 2034 is the logical cut-off, when transmission contracts with network operator Arqiva expire. By then, they say, the cost of broadcasting to a dwindling audience will far outweigh the returns from TV advertising.
Ofcom agrees a crunch point is approaching. In July, the regulator warned of a “tipping point” within the next few years, after which it will no longer be commercially viable for broadcasters to carry the costs of DTT.
Others see risks beyond economics. Questions remain over whether internet TV can reliably deliver emergency broadcasts, such as the daily Covid updates, in the way that universally available DTT can. The UK radio industry has also warned that an internet-only future for TV could push up distribution costs and force some radio stations off air if PSBs no longer share Arqiva’s mast network.
“It is a political hot potato,” says Dennis Reed, founder of Silver Voices, who says he has “dissociated” his organisation from the government’s stakeholder forum, which he believes is “heavily biased” towards streaming.
The Future TV Taskforce, representing the PSBs, counters that moving online could “close the digital divide once and for all”. “We want to be able to plan to ensure that no one is left behind,” a spokesperson says, adding that rising DTT costs could otherwise mean cuts to programme budgets.
The numbers show the scale of the challenge. Of the 1.8m Freeview-dependent homes projected for 2035, around 1.1m are expected to have broadband but not use it for TV. The remaining 700,000 are forecast to lack a broadband connection altogether.
Veterans of the analogue switch-off, completed in 2012 after 76 years, recall similar fears of “TV blackout chaos”. Around 6 per cent of households were labelled “digital refuseniks”, yet a targeted help scheme and a national campaign, fronted by a robot called Digit Al voiced by Matt Lucas, delivered a largely smooth transition.
This time, the BBC is less keen to foot the bill. Tim Davie, the outgoing director general, has said the corporation should not fund a comparable support programme for a Freeview switch-off.
Research for Sky by Oliver & Ohlbaum suggests that with early awareness campaigns and digital inclusion measures, only about 330,000 households would ultimately need hands-on help ahead of a 2034 shutdown.
Meanwhile, viewing habits continue to fragment. Audience body Barb says 7 per cent of UK households no longer own a TV set, choosing to watch on other devices. In December, YouTube overtook the BBC’s combined channels in total UK viewing across TVs, smartphones and tablets, albeit measured at a minimum of three minutes.
That shift may accelerate. YouTube has recently blocked Barb and its partner Kantar from accessing viewing session data, limiting transparency just as online platforms consolidate power.
“When the government chose British Satellite Broadcasting as the ‘winner’ in satellite TV it was Rupert Murdoch’s Sky instead that came out on top,” says a senior TV executive quoted by The Guardian. “There already is such an outsider ready to be the winner in the transition to internet TV; it is YouTube.”
Freeview’s future now hangs on a familiar British dilemma: modernise fast and risk exclusion, or protect universality and pay the price. Either way, the aerial’s days as king of the living room look numbered.
