Jain TV chalks growth path for channels' platform

The packages under JainHits range from Rs 100 to 250 and the average revenue per user in the previous quarter was Rs 200

Jain TV Group had launched its headend-in-the-sky (HITS) platform in India in January. It has seen “fast” growth in subscribers in first four months. The company operates this service under its subsidiary Noida Software Technology Park.

HITS is a multi-channel downlinking (reception), distribution and transmission technology, which enables all pay channels to be received at a central facility and to be uploaded by operators to its satellite after the encryption of channels.

Jain HITS has international technology partners in Intelsat and ARRIS and has set itself a 2014 mission to have 2,000 partners (local cable operators and independent service operators).

“In a short span of time since January 2014, Jain HITS has 200 independent service operators (ISO) across the country. We have sold 100,000 set-top boxes. We are providing broadband services at more than 150 locations and have crossed the 50,000 subscriber base,” said J K Jain, chairman, Jain TV Group.

He added the response of local cable operators (LCOs) had been encouraging and these were fuelling the growth of HITS, though  many are not highly educated and don’t fully understand the DAS regulations and matters related to taxation. The platform has also tried to educate its LCO partners.

The packages under HITS range from Rs 100 to Rs 250 and the average revenue per user in the previous quarter was Rs 200, informs the company.

Jain adds, “HITS estimates it shall book a revenue of Rs 400 crore within the first year. For the first few years, we expect 100 per cent growth. We have invested Rs 150 crore in HITS since April 2012. Overall investment in the network of pan-India cable and broadband services is expected to be Rs 1,000 crore in year one and Rs 2,000 crore in year two.”

The company believes the platform makes it uniquely poised to capitalise on the Rs 93,000-crore Indian cable digital market after digitisation. It's great opportunity lies in that apart from direct-to-home, HITS is the only cost-effective solution available to 55 million subscribers in Phase-III and Phase-IV of digitisation. Cable and digital players will have to invest a great deal in laying out their network in hilly and far-flung areas spread over 620 districts across India, many of which do not have optical-fibre connectivity.

Unlike DTH signals, HITS signals fromJainHits are stable in all weather conditions   which makes itsuitable for all parts of India with different topography. Tocapitalise on tyhese advantages, the platform also offers 250channels which comprises of large number of regional channels andwill soon take this number to 500 with a special HD bouquet of 50channels.

In March this year, Grant Inverstrade,the media investment arm of Hinduja Media Ventures Limited, receivedthe license for the HITS technlogy. Jain however does not look atthis as a cause to worry. “We believe that Hindujas are not ourcompetitors but we look at them as our potential collaborators. Wewelcome their interest in HITS business and are willing to assistthem to enter the market which their HITS platform has failed to doso far. In fact,  they have a long way to walk and we are willing tolet them ride our already running HITS infrastructure,” he says.