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For DEN Networks, the fiscal ended 31 March 2015 has seen two disturbing trends but a senior executive said that the fourth-quarter was an aberration and the digital cable TV business in Phase I and II cities was stabilising.
Carriage revenue has almost flattened in FY15 over the prior-year period while there is a 25 per cent rise in content cost.
Activation revenue has dropped as the deployment of set-top boxes (STBs) has more than halved.
Despite a 25 per cent jump in subscription revenue over the earlier year, DEN Netorks’ EBITDA from the cable TV business has shrunk in FY15. Den Networks, which has diversified into football and home shopping channel, has seeded close to 1 million STBs in FY15, taking its digital subscriber base to 7 million, out of its 13-million universe.
The deployment of STBs is expected to speed up this fiscal as the government has set 31 December 2015 as the deadline for digital addressable system (DAS) in Phase III towns.
Flattening carriage income DEN Networks’ placement (carriage) revenue grew marginally by 1.9 per cent to Rs 474 crore (Rs 4.74 billion) in FY15, from Rs 465.3 crore (Rs 4.65 billion) a year ago. Subscription revenue grew 25 per cent to Rs 508 crore (Rs 5.08 billion) compared to Rs 406.9 crore (Rs 4.07 billion) in the earlier year.
Collection from local cable operators (LCOs) in the DAS Phase I and II cities improved. In FY15, DEN’s total revenue from cable business stood at Rs 1,093 crore (Rs 10.93 billion) compared to Rs 1,055 crore (Rs 10.55 billion) a year ago.
Content cost In the cable TV business, DEN Networks’ content cost (payout to channels) increased to Rs 464.52 crore (Rs 4.64 billion), from Rs 371.73 crore (3.72 billion) a year ago.
Excluding activation and LCO share, the company’s cable TV business revenue grew 11.5 per cent to Rs 966 crore (Rs 9.96 billion).
Read more at:
http://www.televisionpost.com/cable/den-networks-carriage-rev-flattens-and-content-cost-rises-in-fy15/
Carriage revenue has almost flattened in FY15 over the prior-year period while there is a 25 per cent rise in content cost.
Activation revenue has dropped as the deployment of set-top boxes (STBs) has more than halved.
Despite a 25 per cent jump in subscription revenue over the earlier year, DEN Netorks’ EBITDA from the cable TV business has shrunk in FY15. Den Networks, which has diversified into football and home shopping channel, has seeded close to 1 million STBs in FY15, taking its digital subscriber base to 7 million, out of its 13-million universe.
The deployment of STBs is expected to speed up this fiscal as the government has set 31 December 2015 as the deadline for digital addressable system (DAS) in Phase III towns.
Flattening carriage income DEN Networks’ placement (carriage) revenue grew marginally by 1.9 per cent to Rs 474 crore (Rs 4.74 billion) in FY15, from Rs 465.3 crore (Rs 4.65 billion) a year ago. Subscription revenue grew 25 per cent to Rs 508 crore (Rs 5.08 billion) compared to Rs 406.9 crore (Rs 4.07 billion) in the earlier year.
Collection from local cable operators (LCOs) in the DAS Phase I and II cities improved. In FY15, DEN’s total revenue from cable business stood at Rs 1,093 crore (Rs 10.93 billion) compared to Rs 1,055 crore (Rs 10.55 billion) a year ago.
Content cost In the cable TV business, DEN Networks’ content cost (payout to channels) increased to Rs 464.52 crore (Rs 4.64 billion), from Rs 371.73 crore (3.72 billion) a year ago.
Excluding activation and LCO share, the company’s cable TV business revenue grew 11.5 per cent to Rs 966 crore (Rs 9.96 billion).
Read more at:
http://www.televisionpost.com/cable/den-networks-carriage-rev-flattens-and-content-cost-rises-in-fy15/
