Ending RIO, Hathway and Zee’s Taj TVsign CPS deal

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Dinesh jain

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MUMBAI: Multi-system operator (MSO) Hathway
Cable & Datacom, which had to source television
channels from two leading broadcast networks
on a la carte rates, has settled with ZEE to
abandon the RIO (Reference Interconnect Offer)
content deal.

After a protracted battle, both Zee Entertainment
Enterprises Ltd’s (ZEEL) distribution arm Taj
Television and Hathway have smoked the peace
pipe and signed a negotiated deal.

According to a source, the two parties have
signed a carriage deal on cost-per-subscriber
(CPS) basis. The Zee-Turner channels are once
again available in Hathway’s pay-TV bundled
packages.

Though official spokespersons from both the
companies were unavailable for comment till the
filing of this report, industry sources confirmed
that the new deal has been signed.

The deal with Taj could not have come at a
better time for Hathway, which has been at
loggerheads with broadcasters, notably Zee and
Star. Now that the deal with Taj has been sealed,
Hathway will have only Star India channels on
RIO. Incidentally, Star has decided to offer its
channels only on RIO basis to all the MSOs.

It must be noted that Hathway has been carrying
Taj Television channels on RIO since August as
the negotiation to renew carriage deal did not
succeed.

Subsequently, the two parties had fought a long-
drawn battle in the Telecom Disputes Settlement
and Appellate Tribunal (TDSAT) over the
retrospective application of RIO. Star was also a
party to this case.

In its order, the TDSAT stated that broadcasters
cannot apply RIO retrospectively and directed
Hathway to pay all outstanding dues to Taj at
the rate of Rs 21.50 CPS. Besides, the tribunal
had asked Taj and Hathway to execute RIO
agreement by 30 September.

The agreement between Hathway and MediaPro,
the earlier entity that was distributing Zee, Star
and Turner channels, ended on 31 March 2014
(in respect of Kolkata and DAS II areas) and on
30 April 2014 (for Delhi and Mumbai).
Ending RIO, Hathway and Zee’s Taj TV sign CPS deal | TelevisionPost.com
 
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