Zee’s RIO approach

[Dinesh jain]

MUMBAI: Multi-system operators (MSOs) may
not just have to contend with Star India on RIO
(Reference Interconnect Offer) deals, where they
need to take the television channels of
broadcasters on a la carte rates. Zee
Entertainment Enterprises Ltd (ZEEL), which
already has a content contract with Hathway
Cable & Datacom on such terms, could follow
suit with other MSOs if the commercial terms
are not in its favour.

Owning a broad spectrum of TV channels, ZEEL
has left the door wide open. Unlike Star, which
has taken the bold step of locking in only RIO
deals, the Subhash Chandra-promoted
entertainment network has the option to stitch in
cost-per-subscriber (CPS) or fixed-fee deals with
the MSOs in the digital addressable system
(DAS) markets.

“ZEEL has taken a more cautious approach. It is
not obligated to do only RIO deals. If MSOs are
willing, it can settle on negotiated terms,” said a
media analyst.

The broadcaster, however, will take recourse to
RIO deals if the need arises. “As long as
operators are willing to give us our terms, we
will do negotiated deals. And if they are not
willing to give our terms, we’ll go on RIO basis. I
think it is high time that the MSOs wake up and
smell the coffee. They can’t be taking the
broadcasters for a ride forever,” ZEEL MD and
CEO Punit Goenka told media analysts.

In case of Hathway Cable & Datacom, that is
how the content deal concluded. The Zee-Turner
channels are available to the MSO only on RIO
terms.

Zee’s RIO approach | TelevisionPost.com