Tata Play drops Sony channels from packs
Mumbai : Direct-to-home (DTH) operator Tata Play has begun removing Sony Pictures Networks India (SPNI) channels from its subscriber packs, reviving a standoff with the broadcaster similar to last year's, multiple sources told ET.According to one source, SPNI is demanding a 10–15% increase in annual subscription fees from Tata Play—a proposal the latter is resisting amid ongoing challenges such as customer churn and stagnant average revenue per user (ARPU).Tata Play has 18 million subscribers while SPNI has 27 linear TV channels across entertainment and sports.The overall lack of subscriber growth is straining the relationship between broadcasters and distribution platforms, putting pressure on their revenues.
Another source said Tata Play is reducing subscription pack prices by ₹15–20 for affected customers. Typically, broadcasters and distribution platforms renew content deals annually in April.
While SPNI did not respond to ET's queries, Tata Play said the move is part of a routine exercise to optimise packs based on user behaviour. The company noted that customers can choose to reinstate the dropped channels if they wish.
Under
Telecom Regulatory Authority of India
(TRAI) guidelines, distribution platforms must offer TV channels on an à la carte basis even if those channels are removed from bundled packs.
'Pack downgrading along with corresponding drop in price is an ongoing process at Tata Play, where certain channels are dropped for subscribers displaying frequent deactivation. These subscribers have the option of giving a missed call and reinstating the dropped channel instantly,' a Tata Play spokesperson said.
A senior media executive said distribution platforms often resort to tactics such as dropping channels from subscription packages during negotiations. 'Ultimately, both sides are dependent on each other for survival, so a resolution is inevitable,' he added.
A senior executive at a distribution platform pointed out that regular price hikes by broadcasters are making linear TV less attractive compared to streaming services, many of which are bundled with mobile data and broadband plans.
'Content cost already accounts for over 50% of a distribution platform's expenses and continues to go up every year even as customer churn is a reality,' said the executive.
During the earnings call on May 8,
Zee Entertainment
deputy CEO Mukund Galgali had stated that the Q4 subscription revenue remained flat Q-o-Q due to a slowdown in the linear subscription, which was partially offset by the increase in digital subscription revenue.
This isn't the first time Tata Play has modified its offering in relation to SPNI.
In August last year, a similar removal took place, with the company attributing the decision to declining viewership of Sony Entertainment Television (SET), SPNI's flagship Hindi general entertainment channel.
After reaching an amicable resolution, SPNI channels were reintroduced across all packs.
Broadcasters such as JioStar, Zee Entertainment, and SPNI have recently raised their bouquet rates by over 10%, with JioStar—which emerged from the merger of Star India and Viacom18—implementing an 18% hike.
However, distribution platforms say they are unable to pass the full increase on to subscribers due to pricing sensitivity.
"The broadcasters are taking the price up a bit. But yes, we are seeing how we can accommodate that and how we can pass very small costs to the customer side. As you know, the market is still sensitive,"
GTPL Hathway
chief strategy officer Piyush Pankaj had said during the Q4 earnings call.
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