Television

SET-Discovery in MG deal with SCV

MUMBAI: Sony-Discovery has struck an exclusive deal with Sun Network's SCV for distribution of its bouquet of channels in Tamil Nadu.

SCV, the largest cable network in Tamil Nadu, will be paying a minimum guaranteed (MG) amount to SET-Discovery's One Alliance. This will help One Alliance ramp up subscribers in a state which does not have consumer pull for Hindi content.

 

One Alliance has struck similar deals in Bangalore with Incablenet, Hathway Cable & Datacom in Hyderabad, and RPG Netcom in Kolkata. According to the agreement, the multi system operator (MSO) pays a MG to be the exclusive distributor of One Alliance in a particular territory. For One Alliance, collection of dues improve and there is scope to increase subscriber declarations in difficult markets.

 

 

Such MG deals between broadcasters and MSOs have increased ever since the Telecom Regulatory Authority of India (Trai) has maintained a freeze on subscription rates across the value chain. Star in particular has been an aggressive player in the northern region of the country while also cutting a deal with Hathway Cable & Datacom in Hyderabad.

Broadcasters select cable operators who are dominant players in a particular market. The practice of "minimum guarantee" deals is seen by small cable operators as a drive to create monopolies.

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