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With barely a month left for digitization to kick in, broadcaster and MSOs are engaged in hectic negotiations over distribution revenues. Sajeet Manghat and Ashmit Kumar of CNBC-TV18, report that initial indications suggest MSOs are at a price disadvantage to DTH operators and deals with broadcasters are proving difficult to clinch.
The October 31st deadline for digitization is approaching fast and MSOs are busy finalising and unveiling their basic tier packages. But the going is tough and the digitization drive may see these MSOs getting the short end of the stick, when it comes to pricing.
For some, basic tier pricing is almost at a 20 percent premium to that of DTH operators. That's because MSOs have to pay entertainment tax of Rs 25 per subscriber in Delhi, and Rs 45 per subscriber in Mumbai, in addition to service tax. Whereas, for DTH operators, these taxes are worked into the pricing.
While the numbers of cable channels are similar to DTH, cable operators can ramp up the bouquet, based on agreements signed with channels. However, some broadcasters are yet to sign deals with the four major MSOs -- Hathway, Den, Digicable and Siticable.
For example, Media Pro, comprising Star and Zee excluding Sports is yet to sign with Digicable. Star Sports Group is yet to sign with Digi Cable and Siti Cable. TenSports and Ten Cricket are yet to sign with Hathway, Digicable & Siticable.
IndiaCast, comprising the TV18 channels, Viacom & ETV, is yet to sign with Den Networks. Sony's One Alliance is yet to sign with Siti Cable. ABP News is yet to sign with Hathway and Den. TV Today Network is yet to sign with Hathway, DEN and Siticable and the Sun Group is yet to sign with any of the major cable networks.
Of the 6.84 million cable subscribers going digitisation in phase 1, MSOs have been able to digitise only 4.67 million subscribers, that 68% of the total cable subscribers. Including DTH subscribers in the four Metros digitisation has reached 77% of the total subscriber base of 8.26 million. Mumbai has achieved 95 percent digitization, Kolkata 67 percent, Delhi 53 percent and Chennai 49 percent.
Alarmingly for Chennai, not a single set top box has been added in Chennai in the last three months.
The October 31st deadline for digitization is approaching fast and MSOs are busy finalising and unveiling their basic tier packages. But the going is tough and the digitization drive may see these MSOs getting the short end of the stick, when it comes to pricing.
For some, basic tier pricing is almost at a 20 percent premium to that of DTH operators. That's because MSOs have to pay entertainment tax of Rs 25 per subscriber in Delhi, and Rs 45 per subscriber in Mumbai, in addition to service tax. Whereas, for DTH operators, these taxes are worked into the pricing.
While the numbers of cable channels are similar to DTH, cable operators can ramp up the bouquet, based on agreements signed with channels. However, some broadcasters are yet to sign deals with the four major MSOs -- Hathway, Den, Digicable and Siticable.
For example, Media Pro, comprising Star and Zee excluding Sports is yet to sign with Digicable. Star Sports Group is yet to sign with Digi Cable and Siti Cable. TenSports and Ten Cricket are yet to sign with Hathway, Digicable & Siticable.
IndiaCast, comprising the TV18 channels, Viacom & ETV, is yet to sign with Den Networks. Sony's One Alliance is yet to sign with Siti Cable. ABP News is yet to sign with Hathway and Den. TV Today Network is yet to sign with Hathway, DEN and Siticable and the Sun Group is yet to sign with any of the major cable networks.
Of the 6.84 million cable subscribers going digitisation in phase 1, MSOs have been able to digitise only 4.67 million subscribers, that 68% of the total cable subscribers. Including DTH subscribers in the four Metros digitisation has reached 77% of the total subscriber base of 8.26 million. Mumbai has achieved 95 percent digitization, Kolkata 67 percent, Delhi 53 percent and Chennai 49 percent.
Alarmingly for Chennai, not a single set top box has been added in Chennai in the last three months.