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Digitisation can boost revenues of LCOs

31-July-2012
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Digitisation can boost revenues of LCOs

With digitisation, comes a new opportunity for monetisation for cable operators. Exset believes that it has become critical to harness the power of TV and exploit the business opportunity it provides. In line with this thought, Exset has launched its Digital Monetisation System (DMS).

“The Exset DMS features a one-stop-shop for an end-to-end operational TV platform that enables investors to gain an early return on investment,” said Rahul Nehra, Global Head of Sales and Marketing, Exset.

Targeting cable providers, Exset will provide Set Top Boxes (costing $12 to $22) that offer a plethora of options to viewer in terms of gaming, infotainment, shopping and education. The added value that these STBs have apart from the available channels is an ‘India Page’. If one click on this page, he/she can choose links such as ‘My Area’ and get everything in that locality such as schools, shops, etc.

Similarly, if one clicks on ‘Bollywood’ or ‘Health’ or ‘Shopping’ or ‘Magazine’, a host of options are listed. It’s thus ‘surfing’ on the TV without a net connection or a computer. The unique factor is that any page that opens has a built-in area for ads which would bring additional income for the cable operators.

In this revenue share model, Exset would share a ‘symbiotic relationship’ with cable operators. Nehra pointed out that if there are one lakh subscribers, then a cable operator can make besides the broadcast revenue, Rs 52 lakh instead of the Rs 5 lakh that he may be making.

This would be a byproduct of digitisation, explained Stephen Wong, Head of Sales, Asia, Exset. It gives consumers the chance to get information on their TV that was only available on a PC. “With TV penetration around 90 per cent, you can imagine the reach as compared to internet that has a reach of only 30 per cent in India,” said Wong.

Nehra shared that they feel this is the most important step in context of cable digitisation. This will guide local LCOs towards greater monetisation and realisation. “We feel that this concept, driven by our technology will penetrate new markets and convert existing ones,” said Nehra.
In terms of promotional activities planned for DMS, Nehra informed that they are on a drive to educate, inform and engage the whole value system. Country-wide seminars, promotional schemes, engagements and associations are some of the activities planned. “For the current year, we see this as a B2B engagement,” stated Nehra.

Meanwhile cable operators present during the launch reacted positively to this monetisation offer, noting that it will help their revenue stream. Agreeing that digitisation is going to be good for the industry, Roop Sharma, President, Cable Operators Federation of India (COFI) observed, “Why didn’t this come years ago? It is a new stream of revenue for cable operators and a good business opportunity.”

“I want to learn more about the business opportunities that this will offer for cable operators,” she concluded.

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