Television

Even at 15:85 revenue share in broadcasters' favour, all-channel cable bill will cross Rs 400

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2015/09/18/Untitled-1_0.jpg?itok=QLVgLZAk

MUMBAI: When reality bit, it chomped. The pay channel rate card circulated yesterday by Star India and Sony Entertainment (Zee disowned it) at the meeting with the information and broadcasting ministry has burst the bubble that was building that the CAS rollout ride may not be that rough after all.



A breakdown of the proposed price structure makes one thing clear. If this is the way pay channels will be priced, the consumers' cable bill will total at least Rs 417 in Mumbai. And that is only if the cable trade accepts the proposition put forth by Star and ESPN-Star Sports (and one assumes Sony as well) that revenue share should be 85:15 in favour of the broadcaster.



Zee, which has disowned the document, has been on record as saying that it was comfortable with a 50:50 revenue share. However, if the global norm is taken (which swings widely depending on whom you talk to) as 70:30 in favour of the broadcasters, then the total tab is Rs 458.



The math works out thus:



The total declared cost of all the four bouquets is Rs 175. For simplicity, let us put a a notional value of the three pay channels not on the list - Nickelodeon, Hallmark and Ten Sports - at Rs 25. Therefore the total cost of the pay channels is Rs 200. This is a net value and does not include tax and the cable service provider's margin.



The Star revenue share model is 15 per cent to the cable operator so that will be examined first. A 15 per cent margin adds up to Rs 230. To that add the FTA package cost of Rs 72 which is Rs 302. Then there is the service tax of 8 per cent and entertainment tax that varies from state to state. Since it is 30 per cent for Maharashtra, that is the value that will be taken for Mumbai. Therefore Rs 115 is the tax. The total is Rs 417.



At a 30 per cent margin to the distributor the cost is Rs 260 + Rs 72 totalling Rs 332. Add the tax and the total tab is Rs 458.



A 50:50 revenue share costing works out to Rs 372. Add the tax and the total tab is Rs 513.



The demand by big distributors like Hinduja Group MSO INCableNet for a 70 per cent revenue margin is not even being considered here as being a non-starter.



And this tab does not include the monthly outgoes for the set top boxes, whether through rentals or hire purchase.



In the end analysis, there is no running away from the fact that at these prices, consumer uptake of STBs, upon which the smooth rollout of CAS hinges, is just not happening.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/28/Times-Now-800x800.jpg?itok=Ckdthpen
Times Now will be globally 'regional', HD by next quarter

MUMBAI: Success does not end at leadership, it begins! With an aim to create value and make a difference, he is a man on a mission. He quit News X in November 2016 to fill the the big shoes of Arnab Goswami. Known to be an insightful, incisive journalist, Rahul Shivshankar joined Times Now on 15...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/sa%20%281%29.jpg?itok=eot4hbiq
Holi, elections rake in ratings for channels in week 11 of 2017

BENGALURU: Programmes during the Indian festival of colours and assembly elections results counting in five states of the country were television eyeball grabbers for a number of channels as per data released by Broadcast Audience Research Council of India (BARC) for week 11 of 2017 (Saturday, 11...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/hardtaik%20%281%29.jpg?itok=iXIdRhYu
BBC HARDtalking anniversary interview with Sir Ian McKellen

BBC World News’ legendary interview show HARDtalk will be marking 20 years of asking the questions that matter with a raft of dedicated content.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/punit-goenka%20%281%29.jpg?itok=9SbmVluE
Zee Entertainment certified 'Great Place to Work'

Leading Indian content company, Zee Entertainment Enterprises Limited (ZEEL), today announced that it has achieved the certification as a Great Place to Work® by the Great Place to Work® Institute, India. The Great Place to Work framework assesses an organization on employee perception through...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/GRB.jpg?itok=_RkATcem
GRB brings crime, paranormal programmes to Eastern Europe

MUMBAI: GRB Entertainment has sold a slate of unscripted programmes in Eastern Europe spanning genres including real-life crime, natural disaster and paranormal. Hungary’s Origo Media Group picked up 3 seasons and specials of the long-running, real-life hospital drama series, Untold Stories of the...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/inside.jpg?itok=DX3AXtIB
Sony Pictures Network builds team for kids channel, appoints two execs

MUMBAI: Celebration at Sony Pictures Network India (SPNI) seems to be continuing. The network recently launched its factual entertainment channel Sony BBC Earth with BBC Earth. Now, the network is gearing up to launch another channel, Sony kids channel. The channel is slated for an April launch....

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/Oscar.jpg?itok=wY1KKlcJ
Oscar-winning 'Danish Girl' unsuitable for TV despite theatrical release, Sony expresses regret

NEW DELHI / MUMBAI: The Oscar-winning Hollywood film The Danish Girl, which had been released in theatres in the country in January 2016 with an ‘Adults only’ certificate and no cut, has been denied its television premiere in India on Sony Le PLEX HD channel. A Central Bureau of Film Certification...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/24/BARC_1%20%281%29.jpg?itok=4rZPuncb
Star Plus & Sony Pal continue to dominate GEC market

In week 11 of Broadcast Audience Research Council (BARC) India data, Star Plus continued to led both the market Urban and (U+R). Sony Pal maintained its leadership position.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/25/SWAMI.jpg?itok=RVOfsNYz
Depute law officer to probe NDTV tax case, Swamy urges FM

Rajya Sabha MP Subramanian Swamy has recommended through his Twitter handle that the finance ministry should field a Law Officer with the integrity to challenge NDTV's income tax case of Rs.525 cr failing which it would have to face protest by him (Swamy.

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories