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HomeShop18 paid $5.6 mn as carriage fees in FY13
MUMBAI: Gaining from digitisation of cable TV networks, HomeShop18 has reduced its carriage fee payout to cable TV operators in FY13 over the earlier-year period. The television shopping channel, which also runs an online marketplace, paid $5.6 million as carriage fees in FY13, down from $6.2 million in FY12.
Even as HomeShop18 was settling down on cable TV networks, its carriage fees in FY11 amounted to $5.3 million. Though this was lower than its next two fiscal payouts, the channel’s distribution was not widespread. In FY11, digitisation had not arrived and there was bandwidth crunch on cable TV networks. Carriage as a percentage of revenue from operations stood at 27.4% in FY11 and 25.3% in FY12, before dropping to 13.7% in FY13. Homeshop18′s revenue from operations has grown from Rs 87.5 crore ($19.2 million) in FY11 to Rs 117.6 crore ($24.5 million) in FY12 and Rs 221.8 crore ($40.7 million) in FY13. For negotiating carriage agreement with various cable operators on its behalf, HomeShop18 used to utilise the services of Setpro18 Distribution, a Network18 affiliate company. Until June 2012, it paid a flat fee of Rs 50 lakh ($79,900) per year. Pursuant to these arrangements, the company made payments to Setpro totalling $3.3 million, $2.6 million and $0.4 million in FY11, FY12 and FY13. Setpro has been disbanded. Historically, broadcasters in India have paid substantial carriage fees to obtain the right to air a television channel on a distribution network or a direct-to-home (DTH) platform.
HomeShop18 typically seeks to enter into long-term distribution agreements with DTH operators and year-long agreements with cable operators. The channel is available on most DTH and cable networks, including Reliance Big TV, Dish TV, Airtel Digital TV, DEN Networks, Hathway Cable & Datacom and Gujarat Telelink.
HomeShop18 paid .6 mn as carriage fees in FY13 | TelevisionPost.com
MUMBAI: Gaining from digitisation of cable TV networks, HomeShop18 has reduced its carriage fee payout to cable TV operators in FY13 over the earlier-year period. The television shopping channel, which also runs an online marketplace, paid $5.6 million as carriage fees in FY13, down from $6.2 million in FY12.
Even as HomeShop18 was settling down on cable TV networks, its carriage fees in FY11 amounted to $5.3 million. Though this was lower than its next two fiscal payouts, the channel’s distribution was not widespread. In FY11, digitisation had not arrived and there was bandwidth crunch on cable TV networks. Carriage as a percentage of revenue from operations stood at 27.4% in FY11 and 25.3% in FY12, before dropping to 13.7% in FY13. Homeshop18′s revenue from operations has grown from Rs 87.5 crore ($19.2 million) in FY11 to Rs 117.6 crore ($24.5 million) in FY12 and Rs 221.8 crore ($40.7 million) in FY13. For negotiating carriage agreement with various cable operators on its behalf, HomeShop18 used to utilise the services of Setpro18 Distribution, a Network18 affiliate company. Until June 2012, it paid a flat fee of Rs 50 lakh ($79,900) per year. Pursuant to these arrangements, the company made payments to Setpro totalling $3.3 million, $2.6 million and $0.4 million in FY11, FY12 and FY13. Setpro has been disbanded. Historically, broadcasters in India have paid substantial carriage fees to obtain the right to air a television channel on a distribution network or a direct-to-home (DTH) platform.
HomeShop18 typically seeks to enter into long-term distribution agreements with DTH operators and year-long agreements with cable operators. The channel is available on most DTH and cable networks, including Reliance Big TV, Dish TV, Airtel Digital TV, DEN Networks, Hathway Cable & Datacom and Gujarat Telelink.
HomeShop18 paid .6 mn as carriage fees in FY13 | TelevisionPost.com
