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/2017/09/22/star-world.jpg?itok=zwedwX5P
Star World lines up Hollywood A-listers' shows starting 25 Sept

Meryl Streep and Al Pacino, around 10 years ago, debuted on television with ‘Angels in America’ and the media went into a frenzy - ‘Is it the Oscars or the Emmys’, tabloids flashed as they walked the Emmys red carpet! Little did we know that a new-age trend was being set!

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/Ajay%20singh.jpg?itok=kAtpJZZK
SpiceJet's Ajay Singh may take control of NDTV, latter denies (updated)

MUMBAI: NDTV may change hands as its founders -- Prannoy Roy, Radhika Roy and the promoter firm RRPR Holding -- are facing a CBI probe for allegedly concealing a share transaction. A senior NDTV official, however, told the Hindu that the reports were untrue. Singh, it was earlier reported, will...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/ZEE.jpg?itok=joRzwzAl
Zeel channels continue to rule across genres

BENGALURU: In what seems to have become almost normal over the last few weeks, Zee Entertainment Enterprises Limited (Zeel) channels Zee TV and Zee Anmol continued their Hindi GEC supremacy in the weekly top 10 channels across genres list for week 37 of 2017. Broadcast Audience Research Council of...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/Abhishek%20Maheshwari.jpg?itok=bzl-kP5R
Disney pushes brand bindass as it merges with bindass Play, enters OTT space

MUMBAI: It's hardly a week since Disney India rebranded its movie channel UTV Movies, and now the network has consolidated its two channels -- that is bindass and bindass Play. Along with that, in its promise to be omni-present across platforms, bindass will launch an OTT platform for the...

Television TV Channels Music and Youth
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/DD_Kashir.jpg?itok=mZBvSFYf
DD Kashir bids: Prime Focus, Beehive, Grasshopper get breather

NEW DELHI: The three agencies which had been shortlisted by Doordarshan to undertake the channel packaging work for its channel DD Kashir can now submit their bid amounts by 29 September 2017.

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/21/kbc.jpg?itok=CMtI933J
Sony Entertainment climbs to second position, Zee Anmol retains lead in two markets

While Zee Anmol retained lead in two markets, KBC-backed Sony Entertainment bagged the second position with high ratings in the urban market. Zee Anmol retained lead in Hindi (U+R) and rural markets, whereas Star Plus led the urban market in week 37 of Broadcast Audience Research Council (BARC)...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/21/Arnab-Story.jpg?itok=_k8ssaP8
English News ratings' slide continues although Republic TV viewership improves slightly

The Arnab Goswami headed Indian English News channel Republic TV has been leading the genre in terms of viewership right from week 19 of 2017, the week the channel was launched.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/21/pkl.jpg?itok=QRMl_i1P
Sports: Star India channels pocket four out of top five slots

One would easily spot Star India taking over four of the top five positions in BARC India's week 37 sports ratings data, doubling its tally as compared to week 36. Last week, Sony had conquered three slots out of the top five list.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/Punit-Goenka-and-Amit-Goenka.jpg?itok=MdwoMVGs
Zee Studios to produce Indian shows' adaptation in Canada

Entertaining the world for over two decades, Zee Entertainment Enterprises Limited (ZEEL) has achieved another milestone by becoming the first Indian broadcaster to set up a production company in Canada.

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories