Technology

Sun TV to gain after distribution deal with Arasu Cable

MUMBAI: The intervention of the Madras High Court has prompted the Tamil Nadu state-owned Arasu Cable TV Corporation to stitch a deal with Sun TV Network to carry all its channels, ending months of negotiations that had affected the leading regional broadcaster‘s viewership and subscription revenues.


Arasu Cable TV managing director D. Vivekananda told Indiantelevision.com that it was a one-year deal. ?We will have all the 37 Sun network channels on our cable network," he added, without disclosing the financial details of the deal.


The blackout of the Sun network channels had impacted the broadcaster‘s financial performance. For the fourth quarter of the previous fiscal, Sun TV Network‘s net profit had fallen 23.7 per cent to Rs 1.59 billion while its net sales declined to Rs 4.27 billion. Sun will be announcing its fiscal first-quarter results on 3 August.


Arasu Cable was incorporated under Companies Act, 1956 on 4 October 2007 but was dormant after DMK chief M Karunanidhi patched up with his nephew, Kalanithi Maran. It was later recharged by AIADMK chief Jayalalitha to break Sun Group-owned Sumangali‘s cable monopoly in the state.


Arasu offers 148 channels on its cable TV network, including 50 pay channels and 98 free-to-air channels. It has 5.5 million subscribers, said Vivekananda.


Sun TV shares closed at Rs 264, up 1.97 per cent, after touching an intraday high of Rs 277.45.

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