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With digitization deadline round the corner it has been known that the broadcaster and MSOs are engaged in hectic negotiations over distribution revenues as per the report in moneycontrol.com.
The report highlights that the MSOs are at a price disadvantage to DTH operators as MSOs are getting the short end of the stick, when it comes to pricing.
The reason being MSO’s have to pay entertainment tax of Rs 25 per subscriber in Delhi, and Rs 45 per subscriber in Mumbai, in addition to service tax. Whereas, for DTH operators, these taxes are worked into the pricing and basic tier pricing of MSO is almost at a 20 percent premium to that of DTH operators.
While the numbers of cable channels are similar to DTH, cable operators can ramp up the bouquet, based on agreements signed with channels. However, some broadcasters are yet to sign deals with the four major MSOs -- Hathway, Den, Digicable and Siticable.
Of the 6.84 million cable subscribers going digitization in phase 1, MSOs have been able to digitize only 4.67 million subscribers, that 68% of the total cable subscribers. Including DTH subscribers in the four Metros digitization has reached 77% of the total subscriber base of 8.26 million. Mumbai has achieved 95 percent digitization, Kolkata 67 percent, Delhi 53 percent and Chennai 49 percent.
MSO at a price disadvantage over DTH
The report highlights that the MSOs are at a price disadvantage to DTH operators as MSOs are getting the short end of the stick, when it comes to pricing.
The reason being MSO’s have to pay entertainment tax of Rs 25 per subscriber in Delhi, and Rs 45 per subscriber in Mumbai, in addition to service tax. Whereas, for DTH operators, these taxes are worked into the pricing and basic tier pricing of MSO is almost at a 20 percent premium to that of DTH operators.
While the numbers of cable channels are similar to DTH, cable operators can ramp up the bouquet, based on agreements signed with channels. However, some broadcasters are yet to sign deals with the four major MSOs -- Hathway, Den, Digicable and Siticable.
Of the 6.84 million cable subscribers going digitization in phase 1, MSOs have been able to digitize only 4.67 million subscribers, that 68% of the total cable subscribers. Including DTH subscribers in the four Metros digitization has reached 77% of the total subscriber base of 8.26 million. Mumbai has achieved 95 percent digitization, Kolkata 67 percent, Delhi 53 percent and Chennai 49 percent.
MSO at a price disadvantage over DTH
