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With digitisation becoming a reality, broadcasters can finally hope to reduce dependence on ad revenues and focus on subscription. Completeing 11 years this month TheOneAlliance, the joint venture between Multi Screen Media and Discovery Networks, has been in the thick of things as the broadcast industry undergoes an era of change. Rajesh Kaul talks to Urvi Malvania about what has kept the JV going. Edited excerpts:
How has the growth for TheOneAlliance been over 11 years?
We are celebrating 11 glorious years of sustenance and leadership this year. Growth has been good but not as desired because of the various reasons. Today, TheOneAlliance has more than 25% of market share of revenue pie of the paid broadcasters present and we are looking at growing at a fast pace.
What has been the key learning from this JV over time?
As you are aware, TheOneAlliance is a JV between two media powerhouses – Sony & Discovery. This JV has brought our focus on Quality rather than working on the Quantity of channels in our bouquet.
Today, all the channels in our bouquet are leaders in their respective genres.
You have maintained that TheOneAlliance is the strongest JV in the industry. What do you attribute this to?
We have been stable for the last 11 years unlike other players and that’s been our strength. We are the oldest. We have maintained the quality of channels and the strong commitment of our partners has been a support.
Today, 2 out of 5 top GECs are a part of our bouquet, We are best in factual entertainment, best in hindi & English movies and English Entertainment and News ; best in sports, Pepsi Indian Premier League (IPL) – the country’s biggest sporting event is a part of our bouquet;
With DAS kicking in (slowly albeit) what are the changes you foresee?
We foresee a huge change in the revenue allocation between various stake holders. The carriage fees will eventually become zero. The under-declaration will go away and the broadcasters will get a fair share of revenue.
What have been the learnings for One Alliance from DAS phase 1 and 2 and for the industry as a whole as well?
in the digital phase we have moved away from fixed fee deals to CPS deals (cost per subscriber). The currency has to change. Let MSOs pay us for what consumer wants to watch.
Big learning from DAS Phase 1 & 2 for MSOs has been that they have not pushed to increase the ARPUs yet. India still is one of the cheapest in the world. They should push to increase ARPU.
They have been giving set top boxes without getting complete subscriber information or without getting the SAF filled (Subscribers Application Form). They don’t have the full information about the subscribers; Now they are getting their backend infrastructure ready.
Please shed some light on the revenue distribution in the cable digital chain and how you see it changing with the onset of DAS?
DAS means addressability that means a consumer is free to choose his channels and pay accordingly. This maintains 100% transparency. You pay for what you want to watch on your television.
Out of the entire money paid by subscribers, 35% should go to the broadcasters and no carriage fee is involved. Now there is no capacity constraint in the digital world which has been the primary reason for carriage fee.
What is your outlook for the next five years for TheOneAlliance?
In the next 2 years, Digitization in the country will be completed and that would bring the much desired transparency and much awaited fair shares of revenues.
With the strength of content, TheOneAlliance is poised for a big leap in revenue. We are looking at a 200% increase in revenue in the next 5 years.
Looking at 200% increase in revenue in the next 5 years: Rajesh Kaul | Business Standard
..
How has the growth for TheOneAlliance been over 11 years?
We are celebrating 11 glorious years of sustenance and leadership this year. Growth has been good but not as desired because of the various reasons. Today, TheOneAlliance has more than 25% of market share of revenue pie of the paid broadcasters present and we are looking at growing at a fast pace.
What has been the key learning from this JV over time?
As you are aware, TheOneAlliance is a JV between two media powerhouses – Sony & Discovery. This JV has brought our focus on Quality rather than working on the Quantity of channels in our bouquet.
Today, all the channels in our bouquet are leaders in their respective genres.
You have maintained that TheOneAlliance is the strongest JV in the industry. What do you attribute this to?
We have been stable for the last 11 years unlike other players and that’s been our strength. We are the oldest. We have maintained the quality of channels and the strong commitment of our partners has been a support.
Today, 2 out of 5 top GECs are a part of our bouquet, We are best in factual entertainment, best in hindi & English movies and English Entertainment and News ; best in sports, Pepsi Indian Premier League (IPL) – the country’s biggest sporting event is a part of our bouquet;
With DAS kicking in (slowly albeit) what are the changes you foresee?
We foresee a huge change in the revenue allocation between various stake holders. The carriage fees will eventually become zero. The under-declaration will go away and the broadcasters will get a fair share of revenue.
What have been the learnings for One Alliance from DAS phase 1 and 2 and for the industry as a whole as well?
in the digital phase we have moved away from fixed fee deals to CPS deals (cost per subscriber). The currency has to change. Let MSOs pay us for what consumer wants to watch.
Big learning from DAS Phase 1 & 2 for MSOs has been that they have not pushed to increase the ARPUs yet. India still is one of the cheapest in the world. They should push to increase ARPU.
They have been giving set top boxes without getting complete subscriber information or without getting the SAF filled (Subscribers Application Form). They don’t have the full information about the subscribers; Now they are getting their backend infrastructure ready.
Please shed some light on the revenue distribution in the cable digital chain and how you see it changing with the onset of DAS?
DAS means addressability that means a consumer is free to choose his channels and pay accordingly. This maintains 100% transparency. You pay for what you want to watch on your television.
Out of the entire money paid by subscribers, 35% should go to the broadcasters and no carriage fee is involved. Now there is no capacity constraint in the digital world which has been the primary reason for carriage fee.
What is your outlook for the next five years for TheOneAlliance?
In the next 2 years, Digitization in the country will be completed and that would bring the much desired transparency and much awaited fair shares of revenues.
With the strength of content, TheOneAlliance is poised for a big leap in revenue. We are looking at a 200% increase in revenue in the next 5 years.
Looking at 200% increase in revenue in the next 5 years: Rajesh Kaul | Business Standard
..
