With digitisation being the most awaited development in the media space, we dwell on a neglected TV distribution platform - HITS. Recently, Jain TV Group’s Noida Software Technology Park (NSTPL) announced the launch of its Head-end in the Sky service (HITS), JainHITS. It will provide subscribers with an alternative to digital cable and DTH technology for digital TV viewing. NSTPL has launched HITS service in collaboration with Motorola, Intelsat and KIT Digital. ZEE group’s HITS foray in 2008 came to a grinding halt in 2010 due to lack of regulation and industry support. While on paper, HITS looks like a formidable challenge to DTH & digital cable, it has had a checkered history and hence will have to clear many hurdles to succeed. We believe that the success of JainHITS hinges on effective implementation over a sustained period of 3-4 years besides a favourable regulatory environment. Hence, we do not see any immediate impact of HITS on MSOs/DTH players.
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NSTPL prepares grand plans for HITS
The HITS operator functions like an MSO with the only difference being that the head-end is located on the satellite instead of on the ground. NSTPL, promoted by Dr. J K Jain plans to invest INR15bn over the next five years in JainHITS. Motorola will be the technology partner, Intelsat will be the satellite provider while KIT Digital is the solutions architect. Motorola, Intelsat and KIT Digital will not have any stake in the company and will just provide the requisite backend support. JainHITS plans to seed 3mn boxes in its first phase over the next two years and will not have any direct contact with the consumer. Cable operators will have a choice to continue with the existing system or move over to HITS. Currently, JainHITS does not have any plan to advertise and will depend on mouth-to-mouth publicity by LCOs to attract potential customers.
HITS failed to take off in the past
Back in 2009, WWIL had plans for HITS. It had also tied up with builders in Bihar to install HITS receivers in housing complexes. As per the then CEO of WWIL, Sudhir Agarwal, WWIL was HITS-ready across 130 towns and was waiting with a tariff plan. However, in March 2010, the ZEE group discontinued its HITS operations owing to lack of regulatory support like tariff plans. Also, even though frequencies were allocated to JainHITS in early 2012, the launch has happened only now.
HITS not a major threat to DTH/MSOs
Apart from the US, where it was developed, HITS does not have a worldwide presence as it is a highly capital intensive technology. Given the previous failure of HITS in India, cable operators are likely to be skeptical to team up with JainHITS. Effective implementation along with clarity on regulatory issues like inter-connect agreements and pricing is essential for the success.
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