MSOs to announce subscription packages soon

Broadcasters may agree to share 30-35% of the subscription revenue with MSOs
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First Published: Fri, Sep 21 2012. 10 20 PM IST
The information and broadcast ministry had mandated the first phase of digitization to be implemented by 31 October in the four metros of Delhi, Mumbai, Chennai and Kolkata. Photo: Priyanka Parashar/Mint
The information and broadcast ministry had mandated the first phase of digitization to be implemented by 31 October in the four metros of Delhi, Mumbai, Chennai and Kolkata. Photo: Priyanka Parashar/Mint
Goa: With just a month to go for the deadline to shift from analogue to digital addressable systems, multi system operators (MSOs) will announce subscription packages for consumers within the next 10 days. The information and broadcast ministry had mandated the first phase of digitization to be implemented by 31 October in the four metros of Delhi, Mumbai, Chennai and Kolkata.
“We will announce the pricing of channels to our consumers in the next seven days,” said S.N. Sharma, chief executive of DEN Networks Ltd.
Hathway Cable and Datacom Ltd’s managing director and chief executive K. Jayaraman also said the company will announce channel packaging in the coming week.
Most broadcasters have signed agreements with MSOs through their distribution networks. The broadcasters have agreed to share 30-35% of the subscription revenue with MSOs, according to at least three people close to the development.
“For now, most contracts have been signed for six months. We are waiting to see how phase one pans out. After that we will review the terms,” said an executive at a distribution company who didn’t want to be identified.
The Telecom Regulatory Authority of India (TRAI) had allowed MSOs and broadcasters to decide on revenue-sharing terms based on market forces. “Almost 60-70% deals have been closed between MSOs and television channels,” said Gurjeev Singh Kapoor, chief operating officer, Media Pro Enterprise India Pvt. Ltd, a distribution joint venture company between Star Den Media Services Pvt. Ltd and Zee Turner Ltd.
On Friday, TRAI principal adviser N. Parameswaran ruled any further postponement of the 31 October deadline. “We have been constantly receiving updates from stakeholders. There will be no further delay,” he said.
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First Published: Fri, Sep 21 2012. 10 20 PM IST
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