• Welcome to DreamDTH.com - an online community for the television and tech enthusiasts!

    Please Register or Login yourself to ask a question, participate in a discussion.

Govt needs to push digitisation: Tata Sky chief

Dileep Kumar

Registered
Joined
8 Jul 2013
Messages
11,643
Reaction score
2,319
The direct-to-home service in the country has gone through a dramatic transformation over the last 10 years. From a handful to over six crore customers, the country’s six digital TV providers have been a part of this transformational journey even as all of them continue to bleed financially.

BusinessLine spoke to Tata Sky Managing Director and Chief Executive Harit Nagpal on some of these issues the industry and the company face and the way forward.

Edited excerpts:
You are going to market with 4k (ultra-high definition) technology now.

What more can one expect from the Tata Sky stable?
There is always something new. Each year, we have done something new. The 4k technology was not an isolated journey. Customer needs are changing and technology is getting better.

We realised that the TV screens are getting bigger. You cannot take the same picture that you are showing on a 24-inch screen and show it on an 85-inch screen. The picture will become hazy. So, you have to give a better technology. After Standard Definition, High Definition caught up and now we have 4k.

Is the satellite capacity enough for you to launch such new services?
That’s not the question. We got to give what the customer demands.
The compression standards of transmission improve continuously. Even 4k, when I first saw it a year-and-a-half ago, it required one full transponder that could pack about 35 SD channels to transmit one 4k channel. Between then and now, it has already reduced to a quarter of what it used to be then. I am sure as time progresses, it will reduce further.

What are the revenues you earn from value-added services like catch-up television and video-on-demand?
Less than 10 per cent. The basic linear television (SD, HD and 4k) will always remain 90 per cent of the overall revenue.

We don’t charge for recording apart from the money the customer invests in the set-top boxes that enable recording. The customer only pays extra for video on demand. When he is pulling content over the top, he pays extra for that movie like he will pay to the DVD library.

We don’t see them as huge revenue opportunities, we see them more as differentiation opportunities. We see them as an additional layer of service. These services help in improving customer stickiness.

With respect to STBs, there has always been a question of inter-operability (allowing customers to use one STB to switch between providers) ever since DTH firms started providing these services. For some reason, this never took off. What is your sense?

I am all for inter-operability. But circumstances on the ground are such. The fact is that STBs are highly subsidised.
The box is priced less than a third of what the customer pays during activation. So, inter-operability requires a customer to get a conditional access module (CAM).

The cost of that CAM, which the customer has to attach to the box so as to port to another operator, is slightly more than what it costs him to get a new connection.

So if he wants to migrate to another operator, it is cheaper for him to throw away the box or return the box that he has and go in for a new connection.

What are the major issues impeding the growth of the DTH industry?
A third of what we charge the customer is taken away by the Government. Before I see the money, a third is gone to the Government. Show me a category where a third of the revenue goes to the Government.

This is taxed at three levels – I pay licence fee and service tax to the Centre, and I pay entertainment tax to the State. All three put together is 34 per cent. When we started, there was only 10 per cent licence fee. Sales tax and entertainment tax were introduced later.
The Governments are hearing us and we are hopeful that things will improve.

Currently, we are taxed at the rate of cigarettes and alcohol. We are not providing something contraband here.

When will Tata Sky turn profitable?
It’s difficult to say. This business is such that you have to invest upfront in subsidising the customer and hope to get returns in the long run.

We have to invest when the going is good and build assets for the future. When I convert a customer from analogue to digital, he starts paying the content provider and taxes to the Government.
The Government needs to encourage us to push digitisation (by rationalising taxes) which will increase the tax paying base for the Government.
We have been in the investment mode for the past 10 years, but the Government has been making money from us from day one.

Govt needs to push digitisation: Tata Sky chief - The Hindu Business Line : Mobile Edition
 

SarfaRaZ

Dream Pro
Joined
16 Jul 2013
Messages
53,551
Reaction score
29,725
Is the satellite capacity enough for you to launch such new
services?

That’s not the question. We got to give what the customer demands.
:d What a rply :tup
 

sudheep

Dream Pro
Joined
1 May 2014
Messages
1,561
Reaction score
593
Re: RE: Govt needs to push digitisation: Tata Sky chief

SarfaRaZ said:
Is the satellite capacity enough for you to launch such new
services?

That’s not the question. We got to give what the customer demands.
:d What a rply :tup
every thing is hidden in that answer.he is confident about bandwidth now
 

SarfaRaZ

Dream Pro
Joined
16 Jul 2013
Messages
53,551
Reaction score
29,725
sudheep said:
every thing is hidden in that answer.he is confident about bandwidth now
Yeah bro he is fully confident now :tup
 

Sanjeev

Banned
Joined
12 Apr 2012
Messages
4,924
Reaction score
835
Re: RE: Govt needs to push digitisation: Tata Sky chief

sudheep said:
every thing is hidden in that answer.he is confident about bandwidth now
But nothing has been mentioned about new satellite
 

sudheep

Dream Pro
Joined
1 May 2014
Messages
1,561
Reaction score
593
i think they only reviel it in official announcement of sat migration
 

skm30

Registered
Joined
26 Dec 2013
Messages
876
Reaction score
306
Dileep kumar said:
Is the satellite capacity enough for you to launch such new services?
That's not the question.
Guys, Its clear from his reply that there is seriously a big space problem in Tatasky that's why he very smartly avoided that question otherwise he would have boldly stated that there is no such problem with Tatasky or we are having sufficient space for it.
Dileep kumar said:
Is the satellite capacity enough for you to launch such new services?
We got to give what the customer demands.
Guys, this is only tell the customers that Tatasky gives and will give what the customer demands, because Tatasky knows very well that their customers are already demanding for some popular HD & SD channels channels on Tatasky but it can't add them as there is no much space left in Tatasky's TPs for any further big additions.
Dileep kumar said:
Is the satellite capacity enough for you to launch such new services?
The compression standards of transmission improve continuously. Even 4k, when I first saw it a year-and-a-half ago, it required one full transponder that could pack about 35 SD channels to transmit one 4k channel. Between then and now, it has already reduced to a quarter of what it used to be then. I am sure as time progresses, it will reduce further.
Guys, It means Tatasky will wait to add more HD & SD channels on its platform till the compression standards of transmission will improve more, because available space is very limited. He is trying to say that next big addition will take place after a year-and-a-half, when the space requirement of a HD or SD channel will reduce more than what it requires now.
Dileep kumar said:
When will Tata Sky turn profitable?
It's difficult to say. This business is such that you have to invest upfront in subsidising the customer and hope to get returns in the long run.

We have to invest when the going is good and build assets for the future.
Guys, It's difficult for him to assertain, when Tatasky will turn profitable, means he is clearly able to see the progress and development of Tatasky in the near future, which incidently is not looking good.

Further he clearly says that Tatasky will invest only when the going is good for Tatasky, means it will not invest to maintain the good going of Tatasky for its customers.
Sanjeev said:
But nothing has been mentioned about new satellite
Bro, satellite migration is a very big decision for any DTH company and if it has to be happened within a month or two then it has to be announced officially much more ahead of such migration and an official interview was the perfect place for such announcement, especially when the interviewer is raising a question also on its satellite capacity, but no such announcement has been made in his reply. It means, its clear now that no any satellite migration is going to happen in the near future. Now, whatever they have to do, they have to do it in the present satellite capacity only.
 

jdrocks

Dream Pro
Joined
16 Aug 2013
Messages
1,728
Reaction score
688
skm30 said:
Guys, Its clear from his reply that there is seriously a big space problem in Tatasky that's why he very smartly avoided that question otherwise he would have boldly stated that there is no such problem with Tatasky or we are having sufficient space for it.
On the contrary, he sidestepped the question - meaning space is not a problem now. He chose not to divulge how the additional space has been got.

skm30 said:
Guys, this is only tell the customers that Tatasky gives and will give what the customer demands, because Tatasky knows very well that their customers are already demanding for some popular HD & SD channels channels on Tatasky but it can't add them as there is no much space left in Tatasky's TPs for any further big additions.
Again it can be interpreted as they now are looking to address the demand of customers by adding popular channels soon. Of course taking advantage of additional space that would be available soon.

skm30 said:
Guys, It means Tatasky will wait to add more HD & SD channels on its platform till the compression standards of transmission will improve more, because available space is very limited. He is trying to say that next big addition will take place after a year-and-a-half, when the space requirement of a HD or SD channel will reduce more than what it requires now.
If that were the case, another round of migration would be required beyond the ongoing MPEG4 migration, e.g. Migration to HEVC. No, I think he is referring to future new opportunities for space conservation, maybe to leverage new technologies in the future to add 4K channels in less space.

skm30 said:
Guys, It's difficult for him to assertain, when Tatasky will turn profitable, means he is clearly able to see the progress and development of Tatasky in the near future, which incidently is not looking good.

Further he clearly says that Tatasky will invest only when the going is good for Tatasky, means it will not invest to maintain the good going of Tatasky for its customers.
TataSky is a big player and will invest prudently as and when required to avail opportunities available in the market. The trend clearly indicates they will invest to keep abreast of the latest technology and be a market leader.

skm30 said:
Bro, satellite migration is a very big decision for any DTH company and if it has to be happened within a month or two then it has to be announced officially much more ahead of such migration and an official interview was the perfect place for such announcement, especially when the interviewer is raising a question also on its satellite capacity, but no such announcement has been made in his reply. It means, its clear now that no any satellite migration is going to happen in the near future. Now, whatever they have to do, they have to do it in the present satellite capacity only.
They will announce it when the new satellite is prepped and ready to start re-pointing customers' dishes. No point announcing it till all channels are added in the new satellite and everything is ready. There is no option but to migrate to a new satellite as INSAT 4A lease is about to expire in a few months time.
 

SarfaRaZ

Dream Pro
Joined
16 Jul 2013
Messages
53,551
Reaction score
29,725
@jdrocks bro why you quoted this much big post :huh
 
Top Bottom

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock