New Delhi: Big broadcasters like Disney Star, Zee Entertainment, and Sony Pictures Networks India have decided to turn off signals for several major cable operators, who have more than four crore subscribers in the country. This comes as the tariff dispute between television broadcasters and cable operators has gotten worse.
According to a recent Telecom Regulatory Authority of India (TRAI) order known as NTO 3.0, the broadcasters increased their channel offerings by 10–15%. This didn't sit well with a group of cable operators who claimed that this will have an effect on both consumers and their own business, the Indian Express reported.
An industry insider, who wished to remain anonymous, said, “Even as all DTH (direct to home) operators, which include Airtel and Tata Play, and most cable operators across India, have signed agreements with broadcasters as per the new TRAI guidelines, a handful of cable operators with a sizeable subscriber base are refusing to come on board.”
Nine of them had actually petitioned the Kerala High Court under the umbrella of the All India Digital Cable Federation (AIDCF), arguing that TRAI had failed to control the pricing of TV channels or set a price restriction on them. For its side, TRAI argued that the federation lacked locus standi to contest the rule or tariff decision because it had not demonstrated how it was impacted. The regulator added that AIDCF had agreed to the Rs 19 per channel price cap.
After hearing the AIDCF's petition against TRAI, the Kerala High Court scheduled a hearing for Wednesday after the Tuesday arguments remained inconclusive.
Viacom18 Media, which is controlled by Reliance Industries, has remained out while Sony, Zee, and Disney Star cut off their services to these operators on Friday. It's interesting to note that Reliance owns cable TV distribution businesses including DEN Networks, Hathway Cable, and Datacom that have taken these broadcasters to court.
The Indian Broadcasting and Digital Foundation (IBDF) had stated that most DTH and cable operators have already started implementing the new prices, for which they had to increase consumer prices by approximately 5% after four years, in response to the broadcasters' move to switch off signals for these specific cable operators.
According to the report, several cable providers did not sign new contracts, forcing broadcasters to terminate their services despite giving proper notice.
Broadcasters were permitted to raise the cost of channels that are included in a bouquet under the new revisions, from the previous Rs 12 to Rs 19, as per NTO 2.0 in 2018. The revised pricing, in accordance with NTO 3.0 is effective from February 1.