Article Demonetisation might help reform cable TV distribution

IndianMascot

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The cable distribution business, long known for dealings in undisclosed money, might have to improve addressability in the wake of the demonetisation of high-value notes.


For, say experts, the incentive to deal in cash, which prompts most to under-report subscribers and therefore revenue, will reduce.


“There are a few things running concurrently here,” says Jehil Thakkar, partner and head, media & entertainment, KPMG. “You have digitisation (under Digital Addressable Systems) which is currently on. DAS is in its third round and the fourth one should commence by the end of this year. The Telecom Regulatory Authority of India has also issued a draft order which has proposed new pricing for TV channels offered to subscribers. The idea here is to make it affordable for consumers. Add demonetisation and what we might see is that cable operators having to clean-up their operations, so that they are far more transparent in their dealings (with broadcasters),” he says.


According to a Ficci-KPMG report on media & entertainment, there are around 65 million analog cable TV subscribers in India, about 37 million digital cable TV subscribers, 44 million pay direct-to-home subscribers and around 15 million free DTH subscribers.



Demonetisation might help reform cable TV distribution | Business Standard News

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