Siti Cable Kolkata’s local cable channel gamble

[Basil]

MUMBAI: While most multi-system operators (MSOs) in Kolkata are still stuck with billing and hence not able to provide new services, Essel Group-owned Siti Cable Kolkata is out to set an exceptional example. The MSO has chalked out an ambitious plan to launch a slew of cable channels to stand out from its peers. It has also roped in former B4U chief distribution and marketing officer Debashis Dey to spearhead its cable channel business.

Siti Cable has already launched three cable channels which include a Hindi devotional channel (S-Bhakti), Bollywood channel (S-Bollywood) and an adventure channel (S-Adventure) with content sourced from National Geographic Channel (NGC).

Siti Cable Kolkata director Suresh Sethiya told TelevisionPost.com that the MSO will follow this up with two more channels, a Bengali devotional and a Bengali movie channel, which will be launched by the end of this month. Siti Cable Kolkata has cable rights to more than 3,000 Bengali movies.

Siti Cable, though, will not limit itself to entertainment and devotional channels; it also plans to launch a Bengali and a Hindi news channel, both of which are expected to hit the air waves by August. Also on the anvil are an events channel and an informational channel.

Both of these will go on air during Diwali. The events channel will air all types of events whether it is a marriage or a birthday party. The informational channel will provide information about the city. It will have a mix of animated and text-related content.

“We are launching so many cable channels because the bandwidth has opened up, thanks to digitisation. In the analogue era, we were not able to offer value-added services due to bandwidth constraints, but now we don’t face that problem,” Sethiya told TelevisionPost.com.

He added, “As the leading MSO in Eastern India, Siti Cable has always tried to remain a step ahead in offering value-added services to its viewers. The bouquet of S-Channels is planned to cover diverse genres like movies, music and gossip to devotional, events, information and news.” Sethiya said that there is clear gap in the cable market as most cable channel offerings lack quality.

The channels that Siti Cable Kolkata will launch will have high-quality content, he claimed. The channels will be available on its network across East India. “So far the basic offering by majority of the MSOs has been a single channel with movies as the main content and some local content thrown in. Not only do these channels lack quality content but also their presentation and packaging can never compare with a satellite channel in any respect.

The channels that we are launching will have the necessary gloss and unique character to stand out in its genre,” Sethiya affirmed. Siti Cable Kolkata will be making significant capex on launching the cable channels. Sethiya, however, declined to reveal how much the MSO is planning to invest. The significant chunk will go into launching the Bengali and Hindi news channel and sourcing broadcast equipment.

“I don’t want to comment on the investment part, but we will be making significant investments in these channels. The news channels, in particular, will require substantial investments,” Sethiya said without revealing the financials. While some content will be acquired like NGC and movie rights, Siti Cable will also produce its own content. The deal with NGC is on a revenue share basis and has no connection with carriage deals.

The MSO is in the process of building a studio and graphics facility on rented premises to complement this effort. The studio will house the Bengali and Hindi news channels. However, Siti Cable is building a new office in the city that will also have a state-of-the-art studio coming up. “We are currently in the process of recruiting the best talents and should be ready to roll out these services in the next few months,” he asserted. The cable channels will be monetised through advertisements.

Sethiya reckons that if a cable channel is run properly with good content, it has the potential to earn Rs 40–50 lakh (Rs 4–5 million) per month in ad revenue. “These offerings will cater to all age groups as well as create options for the advertising community to pick and choose services according to client needs. Many media agencies have shown interest in the offerings, particularly those that want to target a specific TG,” Sethiya explained.

In comparison with satellite channels, cable channels help advertisers to reach a TG at a fraction of price, he said. Siti Cable has hired ad sales staff for the new channels. Sethiya is confident that non-news channels will break-even in a year’s time. “We are sure that the non-news channels will break-even in one year’s time. News channels will take some more time,” Sethiya added. Going forward, Siti Cable will launch a movie-on-demand service, he signed off.

Read more at: http://www.televisionpost.com/cable/siti-cable-kolkatas-local-cable-channel-gamble/ | TelevisionPost.com