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Keeping in mind the distribution cost involved at every level,
an attempt has been made to safeguard the business interest of the
cable affiliates, Jain said, claiming that , probably, this is the
first time that a broadcaster is sharing distribution margins with
the cable operators.
“We hope, this price arrangement would ensure that the broadcaster
gets a fair share of the consumer spend," Jain said, hinting
that such a move should arrest the trend of rampant under-declaration
in the broadcast and cable industry.
Though Jain was not forthcoming on the dealer margin, a company
source said that the maximum retail price of Pogo has been pegged
at Rs 10, but “an effective rate of Rs 6 will be charged from subscribers.”
This would also mean that Zee Turner would have to spin out a different
distribution strategy for Pogo as it will be distributed and marketed
amongst cable ops as a standalone channel owing to a Telecom Regulatory
Authority of India recommendation that new pay channels couldn't
form part of existing distribution bouquets after a price freeze
was put in place from 26 December, 2003.
Pogo joins Hungama TV in an environment which is increasingly going
to be tough for pay television. Hungama TV, distributed by Star
India and priced at Rs 6 a month per subscriber, is according to
industry reports already seeing a slip in carriage after the launch
of Star One.
Pogo is distributed by Zee-Turner, a Time Warner and Zee Telefilms
Ltd joint venture. Launched on 1 January 2004, the channel has content
specially designed for Indian audiences like Tiny TV, Prime Pogo
and Family Movie Zone. Pogo will double its Hindi language content
to 80 per cent by the end of the year.
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