CABLE OPERATORS’ FEDERATION CALLS FOR BOYCOTT OF HATHWAY

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TV screens in hundreds of thousands of homes across Mumbai may go blank following a diktat from Anil Prabhu, president of the Maharashtra Cable Operators Federation, asking the cable operators to delink from Hathway Cable and Datacom. The diktat comes in the wake of Hathway switching off Sony TV channels over a payment dispute.

While Hathway has said Sony, via its distributor MSM Media, has been demanding exorbitant prices for its channels for letting it renew its distribution agreement, the Sony officials have alleged that Hathway hasn't paid the broadcaster since the last seven months, and the pending amount is more than Rs 14 crore. "Despite making their customers pay for our channels, Hathway have not paid Sony. They threatened to not air the Sony channels when we asked for the dues to be cleared," Sony TV spokesperson said.

Last Monday, the cable operators from across the city assembled at the Hathway office in Lower Parel, but no solution could be arrived at. Now, Arvind Prabhu has sent a note to all cable operators across the state to stop using Hathway network till it airs Sony channels. Prabhu remained unavailable for comment.

On its part, Hathway has termed Sony channels as "unappealing and irrelevant". A Hathway spokesperson said, "We have been telling the channel at its content has been slipping, but it is demanding unreasonable hike from us for renewal of the agreement. We have decided to not give in to such unfair demands."

Cable operators’ federation calls for boycott of Hathway - Mumbai Mirror
 
The operators have even threatened to disrupt the broadband distribution network under Hathway as a mark of protest against the move

The ongoing standoff between broadcaster Multi Screen Media (MSM) and multi-system operator (MSO) Hathway has caused a ruffle among the local cable operators in Mumbai. After complaints from consumers about the non-availability of MSM channels (Sony Entertainment Television, Sony Max, Sony Six etc), the cable operators approached Hathway regarding the issue. Some of them have even threatened to disrupt the broadband distribution network under Hathway as a mark of protest against the move.

Hathway however maintained that it is well within its right to change the packaging of channels on its platform according to the requirements of the business. “Broadband and cable are two separate businesses with different set of dynamics and we have strong systems to deal with the business requirements,” a company spokesperson said. He added: “We have not put the MSM channels on RIO since we have an existing agreement in DAS 1 (Mumbai) for the next 2 months. We have changed the packaging of the MSM channels which is well within our rights and as per regulation.”

Around ten days ago, Hathway moved all the MSM channels to a la carte basis, as opposed to providing them in the base pack to consumers in Mumbai. The MSO’s distribution contract with the broadcaster ends on October 31. MSM had moved the Telecom Disputes and Settlement Appellate Tribunal (TDSAT) regarding the shift, claiming that the decision to shift to a la carte basis was taken unilaterally despite the existing contract.

The tribunal asked Hathway to pay the dues (amounting to Rs 15 crore), but allowed it to change the packaging. However, this decision has not resonated well with the cable operators who had little or no time to intimate the consumers about the shift. To add to the confusion, some of Hathway’s joint venture partners have preferred to keep the channels in the base pack. So while in some areas, like south and central Mumbai, the channels are available on a la carte basis, in some other areas like those between Vile Parle and Borivali suburbs of Mumbai, the channels are available as before.

“There is a lot of confusion among the consumers and we have been getting complaints. Business is being affected as people have paid for the channels in the base pack and now are being asked to pay for them separately. For the cable operator, if the consumer is not satisfied and wants to shift to DTH, the loss is great and almost never repairable,” says a cable operator from the city.

Hathway however maintains that shifting the MSM channels to a la carte basis has been a purely business call and stands by it. The company also clarified that it is not in dialogue with the broadcaster anymore on the issue and has assured cable operators that things will normalise in time. It also maintains that the falling ratings of SET and other MSM channels forced it to take the decision to shift the network channels to ala-carte.

A spokesperson from the company said: “It’s rather sad to see that even if the distribution platform wants to do fair trade by being customer centric and logical, the authoritarian approach of content providers by demanding growth despite weak content and consistent drop in ratings push us to operate in parameters not set by us but the brunt of being the first face to the customer is always paid by us. Product and content has to be strong to demand premium or growth, which Multi Screen Media do not possess.”

Local cable operators weigh in on MSM-Hathway spat | Business Standard News
 
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