'Digitization has revolutionized the TV viewing experience for consumers around the globe'

1. What are the key offerings of STMicroelectronics for the digitization market?

STMicroelectronics is a world leader in the TV and STB (Set-Top Box) markets. Currently, ST supports most of the broadcast providers across the world and is working with many global suppliers and set-top box manufacturers from whom the local operators source their products and solutions.

ST's portfolio includes devices for home media and application platforms, which comprise everything from multimedia/application processors to front-end tuner ICs. ST is unique in its ability to supply the complete range of ICs, ranging from simple broadcast set-top boxes to sophisticated media gateways/servers. The alignment and cost profile of our portfolio is well suited to the requirements of India.

2. Post-digitization, what are the opportunities for cable/DTH operators in India?

Digitization is revolutionizing TV viewing by making it more personal, interactive, and social. In countries that have already digitized, operators are able to shift from selling few broad-appeal channels to selling more specialized and highly focused ones. The change lets them focus on increasing the number of high-definition channels, localized content and premium content, while aiming to increase the average revenue per user and subscriber retention.

In cable, the focus is on customizing the content and having many niche channels to differentiate themselves from the Digital-to-the-Home (DTH) operators. Multiple System Operators (MSOs) and DTH operators are also experimenting with Over-The-Top (OTT) offerings. Additionally, MSOs are upgrading and converting their networks into 2-way networks so that they can offer high-speed broadband services. For example, Hathway has already commercially launched their DOCSIS 3.0 service that is offering 50 mbps broadband plan to users in Maharashtra and down south. This offers a big opportunity to operators to increase their ARPU by offering higher value services on their upgraded two-way networks.

3. What are the benefits for the digital consumers?

Digitization has revolutionized the TV viewing experience for consumers around the globe. Digitization has allowed consumers to enjoy better picture and sound quality, range of channels, enhanced services, including high-definition and video-on-demand content. Viewers can now choose and pay for only those channels that they want rather than having to pick from packages with fixed prices. This has led to transparency in pricing and billing.

Digitization is also helping to increase broadband penetration by reducing the rural and urban divide. This will lead to a boon for developing countries. Digitization has also changed the role of TV from an entertainment medium to an infotainment one. It has exposed consumers to a wide range of channels and to various interactive services. Now consumers have the option to record their favorite program and are see ads that are valuable and useful to them. On top of this there is a massive implication to the lifestyle of consumers. One example: if you are able to access a 50mbps broadband connection at your home tomorrow, it will immediately change the way you exchange information. So, it's not just watching the content, it's also the way you use and interact with the content.

4. What are the issues related to Next Gen Television?

We are now ready for Next-Gen Television. Our technology in India is mature enough to support the rollout of digitization. ST has the right solutions to offer these services in a competitive way on a mass scale. The greater concern while offering streamed content in India is to ensure the right broadband connectivity to CPEs (customer premise equipment). Therefore, if we have good broadband connection at the right price, technology is available today to access video content on multiple screens, in the home or on the go and in a secure manner.

 

Another major challenge is maybe managing content rights and ensuring deals and mechanisms for payment with content owners. Along with all these there also exist some regulatory issues which are applicable to DTH and MSOs. Addressing these problems will speed rollout and adoption of the broadcast and TV ecosystem.

5. What is your forecast for the STB industry?

Digitization of cable and satellite broadcasting is now being addressed and is expected to complete a nationwide roll-out by December 31, 2014. The digitization drive has been quite positive for all the players, consumers, MSOs and broadcasters, by digitizing more than 90% homes in the Phase I and Phase II markets. Then, the industry needs to monetize these efforts. MSOs are now looking forward to generate accurate and effective billing process, and have well defined revenue streams between them and LCOs.

As the world's largest market presently going ‘digital,' India presents a huge business opportunity. Most of the multiple-system operators (MSOs) already have plans to drive the cable broadband scenario. The opportunity lies with both national MSOs and several state-level cable operators who reach millions of users. Digitization has opened up a new revenue stream for all and if implemented correctly, could prove to benefit consumers, operators, and government.

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