MUMBAI: 2015 has been an eventful year for the broadcast sector. The year saw big broadcasters filling the gaps in their regional portfolios by acquiring regional channels. The TV distribution sector drew a lot of investor attention, with Hathway Cable & Datacom, DEN Networks, and Siti Cable seeing fund inflows. The biggest deal in the sector was PE giant TA Associates’ acquisition of 40 per cent stake in Bengaluru-based Atria Convergence Technologies (ACT) for $200 million. The multiplex business saw some more consolidation.
Star finally exited Balaji to focus on its core entertainment and sports business. There were quite a few companies that went in for initial public offerings (IPO) including MSO Ortel. Videocon d2h listed on the Nasdaq after putting its India IPO in abeyance.
With digitisation opening up the critical bandwidth, there was no dearth of channel launches, particularly in HD. The English entertainment genre witnessed a lot of action. Raghav Bahl re-entered TV broadcasting with Da Vinci Media to launch Da Vinci Learning in HD. ESPN announced its return to India in partnership with Sony. Sony formed a joint venture with BBC to launch BBC Earth in India.
The government won plaudits from the industry for further opening up the sector for foreign investors. The foreign direct investment (FDI) limit in TV news and FM radio was increased to 49 per cent after a long time. The distribution sector was fully opened up for foreign investors.
The Ministry of Home Affairs (MHA) denied security clearance to Sun Group’s TV channels and its radio stations leading to uncertainty. Even as the company secured relief from the high courts, the cloud of insecurity continues to hover above it. The Ministry of Information & Broadcasting (MIB) sparred with the MHA over denial of security clearance to Sun TV. Differences also cropped up between the two over the grant of security clearance to multi-system operators (MSOs). The MIB saw the exit of Bimal Julka and entry of Sunil Arora as secretary.
The Telecom Regulatory Authority of India (TRAI) also saw a change of guard with the appointment of RS Sharma. The issue of net neutrality and differential pricing of data services kept the authority busy throughout the year. In broadcasting, the authority issued various tariff orders on DTH CPE, a la carte pricing, and commercial subscribers. It also issued consultation papers on several key issues including interconnection agreements between MSOs and LCOs. The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) gave some landmark judgments with huge ramifications for the broadcast industry.
The Broadcasters Audience Research Council (BARC), a joint industry body comprising Indian Broadcasting Foundation, Indian Society of Advertisers and Advertising Agencies Association of India, finally rolled out ratings from April. Later, it also rolled out all-India ratings including rural, which is a first for the industry.
The over-the-top (OTT) space saw the most action with several new launches including that of Star India’s Hotstar, YuppTV and Hooq. There were other notable developments like HBO shutting its ad-free channels and Champions League T20 getting scrapped.
Deals
· Star India acquires Telugu broadcast network Maa Television Network’s broadcast business for approximately $375 million in cash.
· Viacom acquires 50 per cent interest in five ETV regional GECs for Rs 940 crore; ETV regional channels don the Colors brand.
· Videocon d2h raises $325 million from Silver Eagle Acquisition Corp by selling American depositary receipts.
· Private equity giant TA Associates acquires 40 per cent stake in Bengaluru-based Atria Convergence Technologies (ACT) for $200 million.
· ZEEL decides to acquire Odisha’s Sarthak Entertainment for Rs 115 crore.
· Star exits Balaji Telefilms by selling 25.9 per cent stake for Rs 108 crore.
· Sony Pictures Networks (earlier Multi Screen Media) forms a JV with BBC Worldwide to form factual entertainment channel BBC Earth in India.
· Providence Equity Partners buys Macquarie Bank’s 6.35 per cent stake in Hathway for Rs 241 crore.
· Goldman Sachs picks up 4.8 per cent in Hathway Cable & Datacom. It later ups it to 7.55 per cent by purchasing for 4.45 million shares for Rs 52.6 crore.
· After the Indian Super League, Star India takes direct ownership of another sporting league by purchasing 74 per cent stake in Pro Kabaddi promoter Mashal Sports.
· Apollo Global Management exits Dish TV, sells off remaining 3.58 per cent stake for Rs 399 crore. Earlier it had sold 7.4 per cent in two tranches for Rs 749.6 crore.
· PE firm L Capital exits multiplex chain operator PVR by selling its entire 15 per cent stake for Rs 485 crore.
· PVR calls off deal with SPI Cinemas over high valuation of Rs 1,000 crore.
· PVR acquires DLF Group multiplex business DT Cinemas for Rs 500 crore.
· Carnival Films acquires Network18’s multiplex business Glitz Cinemas.
· Billionaire investor Rakesh Jhunjhunwala invests Rs 25 crore in private FM company Next Radio ahead of the Phase III auctions.
· Promoter company Jagran Media Network Investment ups stake in Jagran Prakashan to 60.23 per cent from 57.60 per cent.
· Radio Mirchi owner ENIL gets MIB nod to acquire TV Today Network’s four non-metro stations—Amritsar, Jodhpur, Patiala and Shimla.
· RTL Group’s BroadbandTV acquires Mumbai-based kids content producer YoBoHo.
· Star India buys Indian Express Group’s Screen to broaden digital play.
· News Corp acquires business portal VCCircle Network for an undisclosed amount.
· Atria acquires additional 25 per cent stake in subsidiary ACN Cable.
· Siti Cable acquires 51 per cent stake in Panchsheel Digital Communication Network and Siti Prime Uttaranchal Communication.
· HDFC Mutual Fund picks up nine million shares of Siti Cable for Rs 31.2 crore.
· JP Morgan offloads two million shares in DEN Networks for Rs 27.55 crore.
· Hero Group acquires majority stake in STB manufacturer Mybox Technologies.
IPOs/Listings
· Videocon d2h lists on NASDAQ with a market cap of $1.15 billion; puts India IPO in abeyance.
· MSO Ortel Communications raises Rs 174 crore from IPO.
· Amar Ujala files for IPO; plans to raise Rs 50 crore.
· Manmohan Shetty-promoted Adlabs Entertainment raises Rs 376 crore.
· UFO Moviez, a digital distribution platform for distributors and exhibitors, raises Rs 600 crore from its IPO.
Channel launches
· ZEEL launches second Hindi general entertainment channel (GEC) &TV.
· Star India launches two more HD channels—Star Sports HD3 (Hindi sports channel) and Star Sports HD4.
· Sony Pictures Networks launches second sports channel Sony Kix.
· Viacom18 launches English GEC Colors Infinity with Karan Johar and Alia Bhatt as curators.
· Essel Group enters factual entertainment space; launches food and entertainment channel Living Foodz.
· Ramoji Rao-promoted Eenadu Television launches four new channels ETV Cinema (Telugu movie), ETV Plus (comedy), ETV Life (lifestyle) and ETV Abhiruchi (cooking).
· Sony Pictures Networks launches HD version of Hindi movie channel Sony Max.
· Star India launches English movie channel Star Movies Select HD to target upscale viewers.
· ZEEL launches HD version of English entertainment channel Zee Café.
· Times Network expands news bouquet with the launch of real estate news channel MagicBricks Now.
· Sony Pictures Networks launches AXN HD.
· Star India launches HD feed of its ‘edgy’ English entertainment channel FX.
· Turner International launches English action and anime destination Toonami.
· Viacom18 launches India’s first kids HD channel Nick HD+.
· German media company Da Vinci Media and Raghav Bahl’s Quintillion Media launch HD kids edutainment channel Da Vinci Learning.
· Times Network re-launches Movies Now HD as MN+.
· Sri Adhikari Brothers launches Hindi entertainment channel Dillagi for LC1 market; later converts it into a Hindi movie channel.
· Media Worldwide launches Marathi music channel Sangeet Marathi.
· Zee Media Corporation relaunches Uttar Pradesh/Uttarakhand-focused channel Zee Sangam as a national Hindi news channel India 24X7.
· Multi-channel home shopping company Naaptol Online Shopping expands into South with Naaptol Tamil, Naaptol Kannada and Naaptol Malayalam.
· Shop CJ (Star CJ) enters regional market with Shop CJ Telugu.
· ZEEL launches English and French entertainment channel Zee World and Zee Magic respectively for African market.
· Viacom18 launches HD feed of Comedy Central on Tata Sky.
· Asianet launches first HD channel in Malayalam.
· White Horse Network Services launches Kannada GEC Kalki Kannada.
· Insight Media City launches Malayalam GEC Flowers TV.
Government/MIB
· Government hikes FDI in news channels to 49 per cent, cable TV/DTH/HITS to 100 per cent, and FM radio to 49 per cent.
· The MHA denies security clearance to Sun TV Network channels apart from Kal Radio and South Asia FM; company gets interim relief from HCs.
· The MIB grants registration to the Broadcasters Audience Research Council (BARC) India for operating as a TV rating agency.
· The MHA wants to do away with security clearance procedure for MSOs.
· The MIB goes back to granting MSO licence on provisional basis due to dispute with the MHA over security clearance.
· The MIB cancels provision of tripartite agreement between DTH firms and lenders following TDSAT order in NSTPL case.
· The MIB directs broadcasters to refrain from providing signals to illegal DTH operators.
· The MIB allows single control room but MSOs need to take separate IRDs from broadcasters for DAS III and IV areas.
· Government increases service tax to 14 per cent from 12.36 per cent; move impacts television broadcasting, content and radio companies.
· ISRO’s GSAT15 satellite was launched by Arianespace on 11 November.
· Sunil Arora replaces Bimal Julka as MIB secretary.
TRAI/TDSAT
· Ex MC&IT secretary Ram Sewak Sharma replaces Rahul Khullar as TRAI chairman.
· TDSAT sets aside TRAI’s 27.5 per cent inflation-linked tariff hike for non-addressable system.
· Broadcasters challenge the TDSAT order on inflation-linked hike in the Supreme Court.
· The SC refuses to grant stay on TDSAT order; asks distribution platforms not to seek refund from broadcasters until the TRAI comes out with a fresh tariff order. The apex court also directs TRAI to conduct fresh tariff exercise based on the directions given by the TDSAT.
· RIO would form the starting point for negotiations between broadcasters and platforms, orders TDSAT in NSTPL versus Star India/Taj Television case.
· The TDSAT asks TRAI to frame a consolidated broadcasting code to replace existing regulations.
· The TDSAT sets aside TRAI tariff order for commercial subscribers equating commercial subscribers with ordinary subscribers.
· Broadcasters challenge TRAI’s 8 September 2015 tariff orders for commercial subscribers, which stated that subscribers who charge their clients separately to use TV services will be classified as ‘commercial subscribers’ while all others will be classified as ordinary subscribers.
· TRAI issues tariff order capping installation and activation charges for DTH customer premises equipment (CPEs) at Rs 450; DTH operators challenge the notification in the TDSAT.
· TRAI notifies ‘twin conditions’ that state that (a) the a-la-carte rate of a pay channel forming part of a bouquet shall not exceed two times its RIO rate offered by the broadcaster for addressable systems; and (b) sum of a-la-carte rates of all the channels in the bouquet shall not exceed three times the bouquet rate.
· TRAI recommends broadcasters and MSOs to enter into new interconnection agreements 21 days prior to the date of expiry of the existing agreement in draft interconnection regulation.
· TRAI seeks stakeholders’ views on draft model and standard interconnection agreements between MSOs and LCOs.
· Government should route DTH educational channels only through the public broadcaster, recommends TRAI.
· TRAI directs broadcasters and MSOs not to provide signals without valid interconnection agreement.
· TRAI finalises reserve price for the new cities included in the FM Phase III auctions. As per Phase III policy, the rules for deciding the reserve price for auction of FM radio channels will include—for new channels in existing FM Phase II cities, the highest bid price received for that city in Phase II; for new cities, the highest bid price received during FM Phase II for that category of cities in that region; in case of unavailability of the benchmark from Phase II for a particular region, the lowest of the highest bid received in other regions for that category of cities.
· TRAI floats consultation paper on differential pricing of data services.
BARC/TAM
· Beginning a new era, BARC India finally rolls out viewership data on 29 April.
· BARC India decides to release the much-awaited rural data from Week 41 onwards.
· BARC India and TAM India form a meter management company to supply raw data to BARC India. BARC appoints Nielsen to conduct India’s largest universe estimation study.
· BARC India and Mediametrie integrate Indian TV audiences into Eurodata TV Worldwide Service.
· BARC India issues global request for information (RFI) for digital measurement.
· TAM and IMRB join hands to launch integrated currency for TV and web measurement.
· TAM makes mobile app open to all, adds more data sets.
· TAM AdEx agrees to certify ad spots on Amagi’s geo-targeted TV ad network.
Cable, DTH and HITS
· Reliance Jio Infocomm subsidiary Reliance Jio Media gets MSO licence.
· Hinduja Group-owned Grant Investrade launches headend-in-the-sky (HITS) service in September under NXT Digital brand; group plans to invest Rs 5,000 crore in project.
· Digicable and You Scod18 get interim relief from the SC on licence cancellation as Bombay High Court vacates stay order.
· Dish TV appoints Arun Kapoor as CEO upon RC Venkateish’s departure.
· Hathway Cable extends MD & CEO Jagdish Kumar’s tenure by two years.
· DEN Networks appoints Pradeep Parameswaran as CEO.
· Dish TV and Sun Direct get interim relief from HCs in licence fee case.
· RBI clears way for foreign investors to increase stake in DEN up to 74%.
· Hathway demerges broadband business.
· MSM and Hathway end dispute, settle for one-year fixed-fee deal.
· Hathway and GTPL announce to jointly work on content and carriage deals with broadcasters.
· Arasu gets ISP licence, ropes in cable ops for broadband service.
· Bombay HC directs TRAI to sort interconnection issue between MSOs and LCOs.
· Siti Cable plans capex of Rs 1,000 crore for FY16.
· Dish TV and Siti Cable form JV Comnet to deal with broadcasters jointly.
· Siti Cable raises Rs 221.11 crore via QIP.
· Govt approves Hathway’s proposal to increase FDI limit to 74 per cent.
· Atul Saraf’s ABS Group sets up Evertz MPEG-4 headend to target cable ops in Phases III & IV.
· AIDCF appoints Saharsh Damani as secretary general.
· On-demand and multi-screen TV service Lukup Media receives MSO registration and unified licence.
· MSOs urge government to remove 8 per cent AGR on cable TV broadband service.
· Sunil Bharti Mittal-led Bharti Enterprises plans to enter STB manufacturing.
· Siti Cable gets permanent MSO licence as the MHA gives security clearance.
· Delhi government doubles entertainment tax on cable and DTH services to Rs 40 a month per subscriber connection.
· IMCL acquires DAS business of Bengaluru-based Mplex Networks for Rs 35 crore; exits Haryana by offloading 51 per cent stake in Jagsumi Perspectives to Fastway Transmission.
· Delhi government slaps entertainment tax notices on Sit Cable, DEN Networks, Hathway Cable and IMCL to the tune of Rs 230 crore.
· Government appeals against Madras HC’s relief to Kalanithi Maran-owned Kal Cables.
· Atria rebrands Beam Fiber as ACT Fibernet.
· DEN Networks appoints Manish Dawar as Group CFO.
· Anil Jain replaces Sanjay Goyal as Siti Cable CFO.
· Dish TV launches in Sri Lanka with 47 channels.
· Dish TV becomes first Indian DTH firm to turn profitable at net level.
· Kerala HC sets aside levy of luxury tax on DTH.
· Shemaroo’s movie premiere service Miniplex launches on Airtel Digital TV and Tata Sky.
· DD Freedish hikes reserve price to Rs 4.30 crore.
· Airtel Digital TV, Tata Sky and Videocon d2h launch 4K service; 2015 ICC Cricket World Cup and Bajrangi Bhaijaan premiere in 4K.
· Tata Sky launches premium STB Tata Sky+ to enable device-shift viewing.
· Dish TV launches home video system DishFlix.
· Reliance Communications plans to hive off DTH biz to pare debt.
· Tata Sky introduces Rs 99 pack for five Southern states.
· Tata Sky launches Rs 8 ‘daily recharge’ voucher with an eye on customers in small towns and villages.
· Tata Sky’s tech upgrade disrupts services of 30,000 subs.
· Dish TV launches differential pricing for metro cities; to all Phase I and II cities.
· Dish TV launches Zing in Tamil Nadu and Kerala.
· Videocon d2h launches an app called Direct to Mobile TV for Rs 60 a month.
· Anil Khera replaces RC Venkateish as president of DTH Operators Association.
Digital video services
· Star launches video-on-demand (VoD) service Hotstar in India; global launch happens in November.
· HOOQ, a joint venture between Singtel, Sony Pictures Television and Warner Bros, launches in India with subscription price of Rs 199 per month; appoints former Dish TV COO Salil Kapoor as India MD.
· Viacom18 names its VoD service Voot; names Gaurav Gandhi as head of digital business.
· YuppTV launches in India, plans to raise $50 mn to fund growth.
· Sony Liv launches subscription-based movie service.
· Airtel Launches movie and video streaming app Wynk Movies.
· WWE’s video streaming service launches in India on 2 November for $9.99 per month.
· Balaji Telefilms appoints Nachiket Pantvaidya as CEO of its digital venture ALT Digital Media Entertainment.
Other key developments
· Sony forms partnership with ESPN to launch co-branded channels.
· HBO shuts down its two ad-free premium movie channels, HBO Defined and HBO Hits.
· ZEEL pulls the plug on its Hindi movie channel Zee Premiere.
· Justice Lodha committee suspends Chennai Super Kings and Rajasthan Royals for two years; BCCI awards Pune and Rajkot teams for two years to RP-Sanjiv Goenka group and Intex Group respectively.
· BCCI, Cricket Australia and Cricket South Africa pull the plug on Champions League T20; Star pays $420 million as compensation.
· iTV Network launches Pro Wrestling League; Sony takes broadcast rights.
· Subhash Chandra reveals plan to launch an international English news channel with India focus.
Also read:
Hindi movie channels see healthy double-digit ad revenue growth in 2015
2015: A year of change and adaptation for Discovery
2015: Times Network’s ascent in the English entertainment space
2015: The year of BARC
How sports broadcasters played the game in 2015
2015: The year of ‘Bhaijaan’
2015: A mixed bag for Hindi GECs
English channels see healthy ad revenue growth in 2015
2015: When new players thronged the infotainment block
Star’s strategy for English entertainment channels in 2015
2015: Sony fortifies position in English entertainment genre
Viacom18’s expansion in the English entertainment space in 2015
How ZEEL pushed its English channels in 2015