Leading DTH operator Tata Play has begun removing Sony Pictures Networks India (SPNI) channels from its subscriber packs, reigniting a standoff between the two entities similar to a previous occurrence last year. Sources indicate that SPNI is demanding a 10-15% increase in annual subscription fees from Tata Play, a proposal the DTH platform is resisting, citing subscriber churn and stagnant average revenue per user (ARPU).
Tata Play, which has 18 million subscribers, has started implementing the removal of SPNI’s 27 linear TV channels, which span across entertainment and sports genres. While SPNI did not respond to queries, Tata Play stated that this move is part of a routine exercise to optimize packs based on user behavior. The company also mentioned that customers can choose to reinstate the dropped channels if they wish.
Under TRAI guidelines, distribution platforms must offer TV channels on an à la carte basis even if removed from bundled packs. A Tata Play spokesperson said that pack downgrading with a corresponding price drop is an ongoing process for subscribers showing frequent deactivation, who can reinstate channels with a missed call.
This situation highlights the strain in the relationship between broadcasters and distribution platforms due to a lack of subscriber growth, putting pressure on their revenues. Broadcasters like JioStar, Zee Entertainment, and SPNI have recently raised their bouquet rates, with JioStar implementing an 18% hike. However, distribution platforms are finding it difficult to pass the full increase onto price-sensitive subscribers.
A senior media executive noted that dropping channels is often a tactic during negotiations, and a resolution is usually inevitable as both sides are interdependent. Another executive pointed out that regular price hikes by broadcasters are making linear TV less appealing compared to streaming services.
This isn’t the first time Tata Play has adjusted its offerings related to SPNI. In August of last year, a similar removal occurred due to Tata Play citing declining viewership of Sony Entertainment Television (SET), SPNI’s flagship Hindi general entertainment channel. The channels were later reintroduced after an amicable resolution.
Key Highlights:
- Tata Play has started removing Sony channels from its subscription packs due to a disagreement over a 10-15% fee hike demanded by SPNI.
- Tata Play is resisting the hike due to subscriber churn and stagnant ARPU, offering price reductions and à la carte options to affected customers.
- This move echoes a similar situation last year and highlights the ongoing financial pressures between broadcasters and DTH platforms.
- Tata Play states the removal is part of routine pack optimization, and subscribers can reinstate Sony channels if desired.