Media: Digital vs. Analog - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Media: Digital vs. Analog

Sep 10, 2007

In the previous article we had explained the TRAI guidelines for the rollout of DTH services and its impact on the DTH operators, broadcasters and the viewers. In this article, we shall delve into the different technologies of digital transmission namely CAS and DTH and the advantages of digital transmission over analogue transmission. Conditional Access System (CAS)
CAS can be implemented in either analogue or digital mode. Under CAS, the local cable operator (LCO) installs a Set top box (STB) at the subscriber's end. The STB keeps track of the channels viewed by the subscriber. A subscriber management system at the Multi System operator's (MSO) facility, ascertains subscriber volume. Thus, with the implementation of CAS, LCOs will not be able to under-declare subscriber base and revenues.

Direct to Home (DTH)
DTH technology can deliver television signals directly to the consumer via satellite, thus eliminating the LCO. For the subscriber, the difference between DTH and the traditional cable is hardware costs, apart from the quality of transmission. In a cable system, the user pays a one-time connection fee followed by monthly rentals, while in DTH, one has to invest in the STB. DTH can be offered even in interiors, where laying a cable wire would not be feasible. Currently, there 3 players in the DTH market. They are DD Direct (Doordarshan's DTH service), Dish TV (part of Zee group) and Tata Sky (JV between Tata group and Newscorp). Others intending to enter the DTH market are Bharti Airtel, Reliance ADAG and Sun TV. With a larger number of players, subscription volumes will increase. The PWC-FICCI report on the Media and Entertainment sector expects the total number of DTH connections to increase to 10 m by 2010.

Digital vs. Analog Transmission

Ability to transmit greater number of channels: Analogue systems are choked due to the increasing number of channels. With digitalization, cable operators will be able to offer a wider choice. Video compression allows up to 12 digital TV channels in the bandwidth of one analogue channel (Source: CRISINFAC). The additional channels will also promote healthy competition among broadcasters.

Quality of transmission:The picture and audio quality of the digital system is better.

Provision of interactive services: Most cable television networks in India do not currently incorporate a reverse path. They only deliver signals downstream, that is, from the head end to the customer. Digital networks can create two-way links with subscribers and provide interactive services.

High-end programming: With digitalisation, it will be also possible to provide programmes in the high definition television (HDTV) format. HDTV provides a wide screen presentation, similar to that seen in theatres.

Thus digital transmission has a lot of advantages over analogue transmission. It will benefit all the stakeholders namely the broadcasters, viewers, content providers, MSO's and the LCO's. The transmission quality will improve and the monthly cable bills of the viewers can be budgeted as per requirements. The broadcasters subscription revenues will increase substantially going forward increasing their ability to spend on content. The MSO's will also gain, as their share in subscription revenues will increase. The local cable operators will benefit in the long run as the average revenue per user (ARPU) increases. Thus, digitisation is the way forward for the Indian television broadcasting sector.

Equitymaster requests your view! Post a comment on "Media: Digital vs. Analog". Click here!


More Views on News

What Fuelled the Sudden Surge in PVR and Inox Shares Today (Views On News)

Sep 27, 2021

Shares of both multiplex chain operators surged almost 18% to hit their 52-week highs.

8 Penny Stocks with Exceptionally High Promoter Holding (Views On News)

Sep 25, 2021

While high promoter holding is a good thing, there can be rare cases where penny stock promoters use misleading information about the actual valuation.

Shareholder Activism Triggers a 30% Rally in Zee Entertainment Shares (Views On News)

Sep 14, 2021

Zee Entertainment shares zoom after top investors seek CEO and MD Punit Goenka's removal.

Here's Why Affle India Hit 5% Upper Circuit Today (Views On News)

Jul 2, 2021

In the past one year, the company's share price is up 202%. Can it go higher?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

How to Hit Rs 100 Crore Wealth in Your Lifetime (Equitymaster Wealth)

Nov 15, 2021

This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Nov 26, 2021 (Close)