Sony pulls the plug as cable giants go dark in high-stakes distribution war

MUMBAI: Indian television’s latest turf war has spilled straight into viewers’ living rooms. In a dramatic escalation of a long-running battle over pricing and packaging, Sony Pictures Networks India has switched off its channels on three of the country’s largest cable platforms, leaving millions of households without Sony TV, Sony SAB and the Sony Sports Network.

The blackout, which took effect on June 10, is no technical hiccup. It marks the collapse of negotiations between the broadcaster and cable operators GTPL Hathway, DEN Networks and Hathway Cable & Datacom, exposing the increasingly fraught economics of India’s shrinking linear television business.

At the heart of the dispute lies Sony’s Reference Interconnect Offer Version 25, which came into force on April 1. The framework requires distribution platform operators to sign interconnection agreements strictly on an “as-is” basis. Any attempt to alter the terms renders the agreement invalid.

The new regime also wipes the slate clean. Earlier agreements automatically become null and void once a fresh RIO takes effect. Historical dues, however, survive. Broadcasters retain the right to recover outstanding subscription payments, and a record of default can disqualify operators from receiving signals.

The trigger for the current standoff lies in Clause 13.3. Under the provision, Sony is required to issue a notice at least 60 days before the expiry of the previous framework. If operators fail to execute the new agreement within that period, the broadcaster is entitled to cut off signals.

Sony has now exercised that right. Cable operators insist the terms themselves made signing impossible.

Industry executives say the resistance is not merely procedural. Sony’s latest RIO significantly reshapes its channel portfolio and expands its regional ambitions.

Among the proposed additions are Sony Sports Ten 4 Kannada, Sony Vizha and Sony Vizha HD for Tamil audiences, and Sony Telugu and Sony Telugu HD. The framework also gives the broadcaster the freedom to alter bouquets, launch new channels and discontinue existing ones during the contract period.

For multi-system operators, that creates headaches. Frequent bouquet changes complicate packaging strategies and threaten already thin consumer margins, prompting demands for negotiations rather than a take-it-or-leave-it contract.

Both sides have dug in.

Broadcaster executives privately frame the dispute as a straightforward compliance issue. The rules were notified, the 60-day notice period elapsed and the operators failed to execute the agreements necessary to legally distribute and monetise the channels.

Cable operators tell a different story. Industry representatives accuse broadcasters of using blackouts and aggressive pricing to weaken linear television and push consumers towards premium streaming services such as SonyLIV.

The latest row is merely the newest chapter in a familiar saga.

The Telecom Disputes Settlement and Appellate Tribunal has spent years untangling disputes over unpaid subscription fees, territorial rights and shifting local cable affiliations. Cases such as Sony Pictures Networks Distribution India Pvt Ltd versus All Digital Network India Ltd and GTPL Hathway have involved multi-crore recovery claims, while other battles have centred on migrating subscribers and unreturned equipment.

This time, however, the stakes are larger.

MSOs face the prospect of subscriber defections as frustrated viewers migrate to DTH operators or streaming platforms. Sony, meanwhile, risks sacrificing both advertising reach and subscription revenues by shutting itself out of millions of urban and semi-urban homes.

For viewers, the legal niceties of Clause 13.3 mean little. Their screens are black.

And until someone blinks, they are likely to stay that way.