Television

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

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

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/default/files/styles/340x340/public/images/tv-images/2018/10/17/bb.jpg?itok=zY4XZsFs
Prepare for three months of fireworks as COLORS SUPER premieres Bigg Boss Kannada – Season 6

Television viewing has never been the same, since the introduction of reality programming kingpin

Television TV Channels Regional
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/17/kaal.jpg?itok=UqtRUxIk
Star Bharat brings Kaal Bhairav Rahasya 2 with a new mystery

India has had age old history associated with myths legends folklore and one of the biggest myth has been that of the curses.

Television TV Channels GECs
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/17/cnbc.jpg?itok=EokyIsrZ
Industry Honchos Uday Kotak, Rajnish Kumar and Kalpana Morparia come together to identify the winners of IBLA 2019

CNBC-TV18’s most-awaited marquee property, The India Business Leaders Awards will be conducting a jury meet along with an informative and insightful panel discussion on Today at Trident BKC, Mumbai, 2:30 pm.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/17/news.jpg?itok=DMl2reiu
News18 India Unveils Two New Shows- “Ye Desh Hai Humara” and “Akhada”

Ahead of the upcoming assembly elections in 5 states including MP & Rajasthan and general elections next year

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/17/allu.jpg?itok=B2FEfPB4
Zee Telugu Announces World Television Premiere of Allu Arjun starrer Naa Peru Surya

Filling this weekend with patriotism, action and drama, Zee Telugu is here with a world television premiere movie of a young man discovering himself while finding the right balance between serving his country and overcoming the hurdles thrown at him due to the power struggles in place.

Television TV Channels Regional
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/10/btvi.jpg?itok=VtXL2F1Y
BTVI endeavors to increase financial literacy across India through Money Mantra

Business Television India (BTVI), India’s Premier English Business News Channel, introduces a multicity initiative - Money Mantra which is an effort to expand the financial awareness and literacy by bringing together, personal financial experts and mutual fund experts close to the common man and...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/17/tv.jpg?itok=_ddlDW6X
Rural markets drive Hindi GEC FTA channels

Hindi GECs or general entertainment channels draw some of the largest eyeballs across India. “My aim is to get that extra tear from the housewife’s eyes during primetime. I want to keep her riveted to my programmes, to my channel,” the head of a cluster of channels in South India once said.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/17/ajay.jpg?itok=yWbCSo3N
Sony Marathi banks on fiction to be market leader

Regional is the hot new space for broadcasters and they have taken big bets on vernacular languages to garner higher ratings. Sony Pictures Network India (SPNI), which already has its presence in the Bengali space, saw the potential in Marathi market and made a move to launch its channel on 19...

Television TV Channels Regional
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/17/zeemedia.jpg?itok=4gQKyVW9
Zee Media gets permission for 4 regional news channels

After a long tenure of being strict in awarding channel licenses, the Ministry of Information and Broadcasting (MIB) has finally become lenient. In the month of September, eight new channels received licenses while none saw their licenses cancelled as on 30 September 2018.

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories