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NEW DELHI, April 2

ZEE Telefilms' wholly owned subsidiary — Siticable Network Ltd — has been given permission by the Information & Broadcasting Ministry to launch its Digital Headend In The Sky (HITS) for distributing pay TV signals in a conditional access system (CAS) environment.

The HITS model comprises down linking of all pay channels, their re-encryption in a common CAS standard and uplinking of this beam. This technology will enable the multi-system operator (MSO) or the cable operator to receive all pay channels from a single dish resulting in low capital expenditure at his end.

Further, the consumer would need a single set top box for receiving all the pay channels rather than multiple boxes if each broadcaster delivers to home in individual encryption standard.

Siticable plans to offer the new services from May and has already signed an agreement with the Indian Space Research Organisation (ISRO) for providing the satellite segment services.

In a statement, Mr Subhash Chandra, Chairman and Managing Director, said, "This is going to redefine cable TV distribution business in the country. Everyone in the value chain — broadcasters, MSOs, cable operators and viewers - will benefit from our HITS model.''

Also, Zee Turner, the distribution joint venture between Zee Telefilms and Turner International, has decided not to raise the bouquet price from the existing Rs 55. It has also decided that out of the total revenues generated from the consumer price, up to 50 per cent will be shared with the MSOs and cable operators.

The company feels that the implementation of CAS would result in a dramatic shift in the revenue distribution pattern between various players in the television broadcasting value chain. Broadcasters would be able to capture over 40 per cent of the total consumer spend on television (at present approximately Rs 8,000 crore), as against the present 8-10 per cent. MSOs would get distribution margin from broadcasters ranging between 20 per cent and 25 per cent, while the cable operators would get a FTA (Free Trade Agreement) delivery margins from pay channels ranging between 25 per cent and 30 per cent.

For Zee Telefilms Ltd, CAS would provide the company with an opportunity to garner additional revenues through Siticable, as it operates HITS as an MSO, which other broadcasters may not be able to capture.

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