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Sun TV Network Ltd. is in talks with Tamil Nadu state-owned Arasu Cable TV Corporation to renew its subscription deal on fresh commercial terms.
Sun TV’s one-year deal with Arasu Cable, inked mid-2012, has expired.
Arasu Cable, which has a dominant presence in Tamil Nadu, is continuing to pay Sun TV on older rates. Sun TV Network gets paid Rs. 2.5 crore ( Rs. 25 million) a month for supplying its channels to Arasu.
Sun TV is asking for an increase in payout but has so far not been able to reach an agreement with Arasu. Negotiations are, however, on.
“There is no change in Sun TV’s deal with Arasu yet. Negotiations continue to happen. Sun TV is booking at older rates,” an industry source said.
Sun TV will benefit from digitisation and expects its subscription revenue to jump by 27 per cent this fiscal. In the fiscal first-quarter, Sun TV had guided for a 25 per cent rise in subscription income over the earlier year.
Sun TV Network expects the benefits of Phase II digitisation to flow through by March 2014 as revenue from Hyderabad and Visakhapatnam have not yet come in. Digitisation has not been implemented in Tamil Nadu and higher subscription revenue from Chennai and Coimbatore are awaited.
Sun TV’s domestic cable TV subscription revenue stood at Rs. 139 crore ( Rs. 1.39 billion) in FY13.
“Subscription revenue from cable grew 19 per cent from the trailing quarter to Rs. 50 crore ( Rs. 500 million). The benefits obviously came from Phase II cities, though this was muted in a few markets such as Hyderabad where digital addressable system (DAS) got delayed due to court cases. Sun will reap further subscription revenue benefits once the legal air clears out,” said a media analyst.
Read more at: Sun TV in talks with Arasu to increase payouts | TelevisionPost.com
