Television

Carriage fees likely to spiral upwards in 2005

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/04/11/India-TV.jpg?itok=h0mcczVd

NEW DELHI: Carriage fee (paid by TV channels to cable ops) is like the casting couch in the entertainment industry. It exists, but is not discussed openly. But live with it, most broadcasters must. And it is only going to get worse what with all these new channels lining up to make their entry into the Indian cable space.

Not only are comparatively new entrants like India TV and old warhorses like Zee News feeling the heat, but those in an expansion mode, like Sahara, are lamenting the increased pressure on the companies bottomlines because of this out flow.

"Distribution is a problem that we had not envisaged. Especially when more than (investments in) content dictate the rules of the game," India TV head honcho Rajat Sharma told indiantelevision in an interview recently.

If industry figures are to be believed, then the likes of NDTV has spent over Rs 90 million on network development and distribution activities (euphemism for carriage fees). Sahara group, struggling to beef up its distribution to increase tunable penetration into cable homes, is said to have a budget of Rs 93 million for the year 2004-05 ending 31 March. Similarly, other news channels too are said to have spent sizable amounts as carriage fee, ranging from Rs 30 million to Rs 1 billion.

According to Sharma, market leaders in the news segment space - names withheld, for obvious reasons - have been paying carriage fees to an extent that the cable ops don't shy away from asking the same from all of us too. He did admit that after initial resistance, India TV too has had to 'pay carriage fee, which are in the form of annual contracts.'

"Subsequent to this gameplan, our visibility has definitely increased, which is indicative from the type and number of responses that we are getting for our programmes," Sharma says.

Rivals they may be, but Zee News, headquartered less than half a kilometer from India TV on the outskirts of Delhi, agrees with Sharma.

A senior executive of Zee News told indiantelevision late last week that Zee News was effectively fighting two battles with competition --- on the content and distribution sides.

It is an open secret that Zoom TV from the Times stable paid up huge amounts of money to MSOs and cable ops for the channel to be put on tunable bandwidth. Headlines Today did not start appearing on prime band one fine morning for no reason.

It is also not that the popular channels don't indulge in such 'friendly activities, which go down in the profit and loss accounts as marketing and network development initiatives and expenses. Two cable operators, amongst a dozen, have confirmed that the Sony-Discovery joint venture distribution company, One Alliance, took cable operators in batches for a fully paid holiday to South Africa during the last cricket World Cup.

It is interesting to note that distribution and network development expenses run up two kinds of bills: cash and gifts. The latter can range from snazzy haversacks to watches to costly leather jackets (for those living in North India where the winters are really cold). The last one is a favourite of One Alliance this year, one learns and is a much sought after commodity amongst cable ops and MSO execs.

Not that the Telecom Regulatory Authority of India (Trai) is unaware of the ground realities, but it feels that the issue of carriage fee is something that the stakeholders have to sort out amongst themselves as it cannot be regulated. However, it is of the view that with the process of registration of interconnect agreements --- especially between broadcasters and MSOs and broadcasters and cable ops --- beginning, this problem can be arrested to a certain extent.

But there is just no getting away from the fact that with new channels lining up to make their debuts, the menace of carriage fee is unlikely to recede suddenly. It's a classic case of demand being more than supply. With severe constraints on bandwidth and other related infrastructural problems, getting on to tunable bandwidth would be a race that every channel would like to win.

And, if one doesn't believe in carriage fee, one has only to take a look at the Disney channels, which are still missing in most parts of North India, dominated by Siti Cable and Hathway.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/star.jpg?itok=XqQ1JaZk
Star ushers in IPL's new era with a bang

Star India is all set to reinvent the Vivo Indian Premier League (IPL) 2018 by increasing fan-engagement levels and bringing the sporting spectacle even closer to cricket fans across the country. The broadcaster’s press conference in Delhi today started with Sophia, a robot, in conversation with...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/punit.jpg?itok=QMjjRK9k
Zeel numbers up on higher ad revenue in third quarter

The Subhash Chandra led Indian television network Zee Entertainment Enterprises Limited reported 11.5 percent and 28.3 percent increase in consolidated total revenue and profit after tax (PAT) respectively for the quarter ended 31 December 2017 (Q3-18, quarter under review) as compared to the...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/baba_0.jpg?itok=4dsXrFZQ
Ramdev wants telecast fees waived off for devotional channels

Baba Ramdev today took a shot at the government for imposing high tax on telecasting devotional TV channels.

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/tumbin.jpg?itok=BK_vfhpI
Be privy to a traditional ode to eternal love and longing with 'Tum Bin 2' on Sony MAX

Sony MAX, the leading Hindi movies channel from Sony Pictures Networks will be whipping up romance this January as it brings the sequel of the 2001 hit movie, ‘Tum Bin 2’ on 19th January at 8pm.

Television TV Channels Movie Channels
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/irra.jpg?itok=HbcXocFG
IRAA Awards Now accepting nominations

In its 12th consecutive year, the Indian Recording Arts Academy Awards (IRAA) 2018 will be hosted alongside the PALM Expo 2018 at the Bombay Exhibition Centre. The awards will once again recognize exceptional skills in music, soundtrack recording and mixing in Indian music for albums and movies.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/network18a_2.jpg?itok=UB6MjyrR
Network 18 PAT at Rs 114 million

Network18 Media & Investments (Network18) reported a marked improvement in its numbers for the quarter ended 31 December 2017. The consolidated revenue (net of revenue from joint ventures and associates) for the company declined marginally by 1.8 per cent year-on-year (yoy) to Rs 3660 million...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/bbc.jpg?itok=D-KQbcCd
Get Intriguing Insights into the human mind with 'Meet the Humans' on Sony BBC Earth

If you think human behavior is predictable, think again. In ‘Meet the Humans’, a show on Sony BBC Earth, starting January 22, at 8pm, a trio of experts led by Dr. Michael Mosely take a microscopic look at the human behavior and discover how incredibly unpredictable and complex humans are.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/tv18.jpg?itok=9obzztU8
TV18 profits decline in third quarter

TV18 Broadcast Ltd (TV18), the subsidiary of the Mukesh Dhirubhai Ambani-controlled Network18 Media and Investments Ltd (Network 18), reported consolidated total income of Rs 10 crore for the quarter ended 31 December 2017 (Q3-18) as compared with income of Rs 23.6 crore for the corresponding year...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/sameer.jpg?itok=FzSr16mH
Applause Entertainment to produce series on 2016 surgical strikes

MUMBAI: Applause Entertainment is making all the right moves.

Television Production House Non-Fiction

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories