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The on-going standoff between broadcaster Multi-Screen Media (MSM) and multi-system operator (MSO) Hathway has annoyed Mumbai’s cable operators.
After complaints from consumers about the non-availability of MSM channels (Sony Entertainment Television, Sony Max, Sony Six, etc.), the cable operators took up the issue with Hathway. Some of them have even threatened to disrupt the broadband distribution network under Hathway as a mark of protest against the move. Hathway, however, maintained that it is well within its rights to change the packaging of channels on its platform according to the requirements of the business.
“Broadband and cable are two separate businesses with different set of dynamics and we have strong systems to deal with the business requirements,” a company spokesperson said. He added, “We have not put the MSM channels on RIO since we have an existing agreement in DAS1 (Mumbai) for the next two months. We have changed the packaging of the MSM channels, which is well within our rights and according to regulation.”
About 10 days ago, Hathway moved all MSM channels to the ala-carte format, as opposed to providing them in the base-pack to consumers in Mumbai. The MSO’s distribution contract with the broadcaster ends on October 31. MSM had moved the Telecom Disputes and Settlement Appellate Tribunal (TDSAT) regarding the shift, claiming that the decision to shift to ala-carte basis was taken unilaterally, despite the existing contract.
The tribunal asked Hathway to pay the dues (amounting to Rs 15 crore), but allowed it to change the packaging. However, this decision has not resonated well with the cable operators who had little or no time to intimate the consumers about the shift. To add to the confusion, some of Hathway’s joint venture partners have preferred to keep the channels in the base pack. So, while in some areas, like south and central Mumbai, the channels are available on ala-carte basis, in some other areas like those between Vile Parle and Borivali suburbs of Mumbai, the channels are available as before.
“There is a lot of confusion among consumers and we have been getting complaints. Business is being affected as people have paid for the channels in the base pack and now are being asked to pay for them separately. For the cable operator, if the consumer is not satisfied and wants to shift to DTH, the loss is great and almost never repairable,” says a cable operator from the city.
Hathway, however, maintains that shifting the MSM channels to ala-carte basis has been a purely business call and stands by it. The company also clarified that it is not in dialogue with the broadcaster anymore on the issue and has assured cable operators that things will normalise in time. It also maintains that the falling ratings of SET and other MSM channels forced it to take the decision to shift the network channels to ala-carte. A spokesperson from the company said, “It’s rather sad to see that even if the distribution platform wants to do fair trade by being customer-centric and logical, the authoritarian approach of content providers by demanding growth despite weak content and consistent drop in ratings push us to operate in parameters not set by us but the brunt of being the first face to the customer is always paid by us. Product and content has to be strong to demand premium or growth, which MSM do not possess.”
