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Disruptive direct- to home is taking on the Net

When the Internet was a hot new thing shaking up stock markets worldwide, many of us thought that wired broadband Internet was the future, and a good part of it would come through fibe-optic cables. But the “dotcom” bubble happened, writes N Madhavan.

Updated on: Oct 18, 2009 08:34 PM IST
Hindustan Times | By
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A decade ago, when some of us were aware of the humongous potential of the Internet and convergence technologies, the guesses we were taking on how things would shape up in the convergence game. The twists and turns that a new technology can take through its life can be quite surprising even for those who think they know the script.

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HT Image

When the Internet was a hot new thing shaking up stock markets worldwide, many of us thought that wired broadband Internet was the future, and a good part of it would come through fibe-optic cables. That is indeed true, but not in the way we thought. For instance, I remember that Reliance Communications (then run by Mukesh Ambani before the business went to brother Anil) was thinking of using fibre to supply movies to film theatres.

But the “dotcom” bubble happened, and Internet companies fell out of favour with the markets, while telecom companies in the broadband space went through their own meltdown in the US. Technology, however, kept its forward march. Now, we have seen companies such as Pyramid Saimira and UFO Moviez using satellites to create a broadcast-model distribution of cinema to smaller movie halls. That is not as hot in quality as digital projection cinema, but has altered the cost element significantly in the business.

New movies are offered for downloads, and channels beam education, travel and religion related content in an interactive mode. Downloaded storage enables a pay model in which you can alter the time of viewing. Latest movies can be viewed for as low as Rs 25, and I think that potentially threatens both video rentals as well as the multiplexes. For instance, with a solid LCD TV or high-definition TV with a large screen at home, you can do a lot now with your DTH service provider.

Videocon is taking the game to the next level by integrating the set-top box and storage with its own television set and offering services as well—in a fulls-service model. Radio channels from the satellite (Airtel offers my favourite WorldSpace channels) can take on conventional FM radio broadcasters, while interactive TV can substitute for the Net in a lot of spheres.

After experiencing the new DTH offerings, I think this is more disruptive for India than the Internet. My guess is that smartphones offering 3G services and DTH will change India faster than we think.

 
ABOUT THE AUTHOR
N Madhavan

While India saw heated protests and a debate last week over Net Neutrality -- the call to the Telecom Regulatory Authority of India (TRAI) for strictly separating content (apps) and carriage (data plans), the European Union’s Competition Commissioner took a step forward in another side of the business by charging Google with defying what is called “search neutrality”.

Follow India news real-time updates and the latest news covered on Hindustan Times, featuring today's critical updates on Sonam Wangchuk LIVE and more across India.
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