Current price war is like a land grab: Abe Peled
NDS group chairman and CEO Abe Peled
NDS Group is an end-to-end pay television technology solutions provider and among the largest players around the globe. It works with several companies in India and also has its own R&D centre in Bangalore. NDS group chairman and CEO Abe Peled spoke to ET about the Indian market and the future of the DTH and digital cable industry.
Which of the content broadcast platforms — cable, DTH and IPTV — would boost digitalisation in India?
Both satellite and digital cables are faster to deploy and can reach out to a large audience. So DTH and digital cable would really drive digitalisation in the country. The broadband penetration in the country is low and bandwidth is small. The quality is not so high as to be able to deliver content to mass media. IPTV could, therefore, take some time to take off in the country.
Currently how much does India contribute to your overall revenues and how important is the market for your overall growth?
Currently, India’s contribution to our overall revenues is very small. That is largely because pay television is facing challenges like lower average revenue per user (ARPUs) and the problem of under-declaration of subscribers. We don’t break our revenues into regions or countries but we expect our revenues from the Asia-Pacific region would grow by 18% this year.
India is a significant market for us. We are proud that within a few years our R&D centre in Bangalore has become central to our worldwide operations. We currently have 1,000 employees and have committed to invest $150 million in the next four years to enhance our operations as well as increase hiring by 30%.
There is a constant comparison between India and China. How significant are these markets for pay television?
Our presence in China is modest. We have a small team looking into the sales and service functions. There are several reasons for that. Firstly, the number of English-speaking population in the country is small. Also, China and India are very different as markets — China is not a free society.
But the most important factor is that digitisation in China is not being driven by the consumer. There is not much to watch in the country in terms of content. In India, the consumer wants pay television to become digitised.
DTH operators are not allowed content exclusivity on their platform. What would be the differentiating factors for the
industry?
Content exclusivity should be allowed for DTH players. It would benefit the content industry. It will also create a market for high-value content in India. Globally, sports programming has benefited greatly through on-demand services. However, in the current scenario, digital video recorder, where a consumer can record live TV, could become a market differentiator. We are also working on solutions that will help DTH players and broadcasters to use DVR for targeted advertising by placing advertisements on live and delayed feed.
Interactive services as well as high-definition content could also drive ARPUs up. This will also help both the cable and DTH industry to expand and generate other revenue sources. Quality of service would also be an important market differentiator.
India would be the first country to have 6-7 DTH players. Do you think it’s possible for them to survive or would there be a consolidation?
If you ask me whether there could be more than one player in the country, it’s possible. However, if you ask me whether there would be seven DTH players, I would say it would be difficult for them to sustain. Consolidation is bound to happen. The current price war is like a land grab where everyone is running for volumes.
It’s important to remember that a consumer who buys a product for nothing would have zero loyalty towards the product or service. It’s when the consumer has to invest in a service that they think more carefully and for the long term.
What is your perspective on the Indian government’s policy on the pay television sector ?
We have been able to participate in the policy formulation and policy recommendations. In fact, several of our suggestions have found place in the policies related to pay TV
Current price war is like a land grab: Abe Peled- Interviews-Opinion-The Economic Times
NDS group chairman and CEO Abe Peled
NDS Group is an end-to-end pay television technology solutions provider and among the largest players around the globe. It works with several companies in India and also has its own R&D centre in Bangalore. NDS group chairman and CEO Abe Peled spoke to ET about the Indian market and the future of the DTH and digital cable industry.
Which of the content broadcast platforms — cable, DTH and IPTV — would boost digitalisation in India?
Both satellite and digital cables are faster to deploy and can reach out to a large audience. So DTH and digital cable would really drive digitalisation in the country. The broadband penetration in the country is low and bandwidth is small. The quality is not so high as to be able to deliver content to mass media. IPTV could, therefore, take some time to take off in the country.
Currently how much does India contribute to your overall revenues and how important is the market for your overall growth?
Currently, India’s contribution to our overall revenues is very small. That is largely because pay television is facing challenges like lower average revenue per user (ARPUs) and the problem of under-declaration of subscribers. We don’t break our revenues into regions or countries but we expect our revenues from the Asia-Pacific region would grow by 18% this year.
India is a significant market for us. We are proud that within a few years our R&D centre in Bangalore has become central to our worldwide operations. We currently have 1,000 employees and have committed to invest $150 million in the next four years to enhance our operations as well as increase hiring by 30%.
There is a constant comparison between India and China. How significant are these markets for pay television?
Our presence in China is modest. We have a small team looking into the sales and service functions. There are several reasons for that. Firstly, the number of English-speaking population in the country is small. Also, China and India are very different as markets — China is not a free society.
But the most important factor is that digitisation in China is not being driven by the consumer. There is not much to watch in the country in terms of content. In India, the consumer wants pay television to become digitised.
DTH operators are not allowed content exclusivity on their platform. What would be the differentiating factors for the
industry?
Content exclusivity should be allowed for DTH players. It would benefit the content industry. It will also create a market for high-value content in India. Globally, sports programming has benefited greatly through on-demand services. However, in the current scenario, digital video recorder, where a consumer can record live TV, could become a market differentiator. We are also working on solutions that will help DTH players and broadcasters to use DVR for targeted advertising by placing advertisements on live and delayed feed.
Interactive services as well as high-definition content could also drive ARPUs up. This will also help both the cable and DTH industry to expand and generate other revenue sources. Quality of service would also be an important market differentiator.
India would be the first country to have 6-7 DTH players. Do you think it’s possible for them to survive or would there be a consolidation?
If you ask me whether there could be more than one player in the country, it’s possible. However, if you ask me whether there would be seven DTH players, I would say it would be difficult for them to sustain. Consolidation is bound to happen. The current price war is like a land grab where everyone is running for volumes.
It’s important to remember that a consumer who buys a product for nothing would have zero loyalty towards the product or service. It’s when the consumer has to invest in a service that they think more carefully and for the long term.
What is your perspective on the Indian government’s policy on the pay television sector ?
We have been able to participate in the policy formulation and policy recommendations. In fact, several of our suggestions have found place in the policies related to pay TV
Current price war is like a land grab: Abe Peled- Interviews-Opinion-The Economic Times