As the spat between content aggregator
IndiaCast UTV and direct-to-home service provider
Dish TV continues, the former has made it clear that paying carriage fees is not an option. Dish TV on the other hand insists that what it is asking for is legitimate fees for extra services provided by it to carry channels from the IndiaCast bouquet.
Anuj Gandhi, group CEO, IndiaCast asserts, “
Carriage fee is a phenomena that came up in the era of analogue television. At that time, there was a problem of bandwidth and thus operators charged a carriage and placement fee to broadcasters. Now with digitisation, that problem is not there. However slowly, but surely, carriage fees are coming down in the cable digital space as well. Paying carriage fees to
DTHproviders will mean taking two steps back for the industry. I do not feel that if we go off their platform, we will be much affected.”
Dish TV and IndiaCast UTV had a reference interconnect offer agreement till 31 December 2013. Under this agreement, which is mandated by the Telecom Regulatory Authority of India, the DTH operator has to carry the channels from the aggregator on an ala-carte basis without any carriage fee. In return, the operator will pay the aggregator content cost only for the channels that the customers have subscribed to and not on a bouquet basis.
RC Venkatesh, CEO, Dish TV says, “We are not charging carriage for standard conditions. All we are saying is that if they want a particular placement or want to be included in a specific pack, then they will have to pay us extra. Their channels are available on our platform on Ala-carte basis even now. We are open to negotiations of deals as well. If we are not able to, then we shall take their channels on RIO basis. It suits my business model also (to have them on Ala-carte basis).”
Gaurav Gandhi, group COO, IndiaCast agrees and says, “Dish’s problem is to do with a stagnant subscriber base & below par
ARPU and they believe that carriage income can help them overcome this hurdle. The fact is that Dish has a miniscule contribution to the overall ratings which is now apparent because inspite of all disruptions they have caused to our channels, our ratings are not impacted at all. Where is the question of paying them any carriage?”