Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
07 July, 2015 10:28 IST
Broadcasters will be the biggest beneficiary of digitization: Edelweiss
Source: IRIS | 28 Nov, 2012, 10.08AM
Comments  |  Post Comment

The government's efforts to digitize cable television in India are paying off with Phase I having gone through satisfactorily. As per Ministry of Information and Broadcasting (MIB), Phase I has seen 100% digitization in Mumbai, 97% digitization in Delhi, 85% digitization in Kolkata and 86% digitization in Chennai as of Oct. 30, 2012.

Digitization will lead to a change in prospects for the media industry. The current structure of the media industry, where majority of the revenues are taken away by the Local Cable Operators (LCO), has led to suppressed profitability levels for other players in the value chain. Under-reporting is to the tune of 80% to 85%, according to Edelweiss Securities.

''With the advent of digitization, under-reporting levels will decrease substantially and prospects will improve meaningfully for players in the value chain - broadcasters and multi-system operators (MSO) who will now get their full share of the revenue pie. This will lead to a quantum jump in the profitability of players, especially broadcasters,'' the stock broker opined.

The biggest beneficiary of digitization will be broadcasters. On one end, their subscription revenues will increase and on the other hand carriage and placement charges will drop. Negligible capex will be involved in the process. On the contrary, MSOs and DTH operators will have to incur capex for financing set-top-boxes and putting up digital infrastructure, it said.

"Content will be the key and it lies in the hands of the broadcasters. No matter what medium the consumer chooses to watch - DTH / Cable / Online / Mobile - what ultimately matters is the content," it concluded.

TV18 Broadcast, ZEE Entertainment and ZEE News are its top picks.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
RIL to sell 32.5 mn shares of Network18 via OFS - 06-Jul-2015 18:57
SKS Microfinance issues Rs 1 bn Commercial Papers - 06-Jul-2015 18:45
Kay Power and Paper expands paper division capacity to 20,000 TPA - 06-Jul-2015 17:30
Yes Bank partners with Citrix to achieve workspace mobility - 06-Jul-2015 17:05
DIIs hike shareholding in Jayant Agro to 4.38% in June quarter - 06-Jul-2015 15:40
FIIs, DIIs increase stake in KNR Constructions - 06-Jul-2015 15:27
DIIs hike shareholding in Hero Motocorp to 13.44% in June quarter - 06-Jul-2015 15:17
CG names Shantanu Khosla as head of consumer business - 06-Jul-2015 14:57
Transgene's miRNA liver cancer molecule allowed for issuance of USA patent - 06-Jul-2015 13:26
FIIs, DIIs pare shareholding in AIA Engineering in June quarter - 06-Jul-2015 13:24
DIIs raise stake in Bank of Baroda in Jun'15 quarter - 06-Jul-2015 13:18
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer