Stocks of local cable operators (LCOs) gained during the morning deals on the BSE on Tuesday while those of movie service providers tanked after Reliance Industries announced roll out of its set top box (STB), backed by Reliance Jio, and Jio GigaFiber which would provide ‘Jio First Day, First Show’ to Jio customers.
During its 42nd annual general meeting (AGM), oil-to-chemicals conglomerate Reliance Industries said RJio will roll out a set-top box (STB) that will accept broadcast cable television from LCOs to offer a bouquet of high-definition channels.
“In recent years, competition from DTH (direct-to-home) operators has threatened the viability of nearly one lakh LCO who still operate across India. Jio wanted to ensure that these LCOs continue to serve their communities. Earlier this year, RIL acquired stakes in three leading MSOs (multi=service operators), Hathway, Den and GTPL, who have direct relations with over 30,000 LCOs. Over the past months we have worked with our MSOs to upgrade their infrastructure to world class standards,” Mukesh Ambani, chairman and managing director, Reliance Industries said at the 42nd AGM on Monday.
RIL, on October 17, 2018, had announced that it would buy majority stakes in Den Networks Ltd and Hathway Cable and Datacom Ltd for Rs 5,230 crore, a move aimed at becoming the largest player in the broadband, cable TV and direct-to-home markets.
Among other prominent announcements, RIL announced 'Jio First Day First Show' plan under which Premium JioFibre customers will be able to watch movies in their living rooms on the day of the release. This will be rolled out in 2020.
At 11:00 am, the stock of Hathway Cable and Datacom was locked in the upper circuit of 20 per cent at Rs 23.5 apiece while Den Networks, which had zoomed up to 17 per cent to trade at Rs 70.60 per share, was ruling 14.33 per cent higher at Rs 68.60 per cent. The shares of GTPL Hathway, too, pared its initial gains of 5 per cent and was quoting at Rs 77.5 per share, up 1 per cent on the BSE. In comparison, the benchmark S&P BSE Sensex was trading 0.2 per cent lower at 37,507 levels.
Meanwhile, shares of PVR Cinemas, which had tanked up to 8 per cent to trade at Rs 1,346 per share, were trading at Rs 1,432, down 2 per cent. INOX, too, pared its loss of 10 per cent, to trade at flat at Rs 299 apiece, down 2 per cent on the BSE.
"Cinema exhibition remains the largest revenue contributor for the Filmed entertainment segment... For decades, theatrical release window has been a valuable model for exhibitors and producers alike. In India and globally, producers have respected the release windows and kept a sacrosanct gap between the theatrical release date & the date of release on all other platforms, i.e. DVD, DTH, TV, OTT etc... Theatrical and at-home are two completely different experiences and each has their own places. Both these experiences have co-existed and prospered for decades and will continue to so in future," PVR said in a statement. READ FULL STATEMENT HERE
Shares of RIL, also, zoomed as much as 9.29 per cent to Rs 1,270 apiece on the BSE in the early morning trade on Tuesday after the company made a slew of announcements at its 42nd AGM.
Other Mukesh Ambani - led Reliance Group stocks Reliance Industries Infrastructure (up 20 per cent at Rs 284), Network18 Media & Investments (19 per cent at Rs 24) and TV18 Broadcast (12 per cent at Rs 23) have rallied by up to 20 per cent on the BSE.