CABLE DISPUTE: Cable dispute resolved: Here’s why 4.5 crore TV screens went blank

The agreement was signed staring at a potential revenue and subscriber loss which may reduce the damage creating a win-win situation for both the parties involved.

Disney Star, Zee Entertainment Enterprises Limited (ZEEL), and Culver Max Entertainment (Sony), who are members of the Indian Broadcasting and Digital Foundation (IBDF), have decided to activate the signals of their channels to Hathway Digital, DEN Networks, GTPL, Fastway Transmission, and NXT Digital (Hinduja Global Solutions) after the MSOs decided to sign agreements as per the new tariff order (NTO 3.0).

Here’s all you need to know about the dispute:

1. A few days ago, leading broadcasters including Disney Star, Zee Entertainment Enterprises and Sony Pictures Networks India Ltd stopped providing feed to cable operators who had not signed fresh agreements with increased prices under the New Tariff Order (NTO).
2. All India Digital Cable Federation (AIDCF), the apex body of digital cable television players, had declined to sign the agreement as it would increase the cost from 25 per cent to 35 per cent and put an additional burden on consumers. The authorities said they were considering legal recourse over it.
3. However, cable service providers did not heed it leading to the disconnection of signals by the broadcasters.
4. This action has resulted in depriving around 4.5 crore cable TV families across the country from being able to watch channels transmitted by these broadcasters, it added.
5. Under NTO 3.0, which is to be implemented in February, prices of the popular channels have been increased by 15 per cent.
6. According to AIDCF, besides its members, various independent MSOs had also been disconnected by these broadcasters since most of the large and medium MSOs had refused to sign the RIOs with this increased price.
7. On Feb 24, the broadcasters and MSOs signed an agreement which finally terminated the cable blackout.
8. According to ET sources, the channel reach of the three broadcasters witnessed a massive drop during the blackout. It is expected that the broadcasters will compensate the advertisers by providing additional inventory to make good for the loss in audience reach.
9. Even as the two sides have smoked the peace pipe, the Kerala High Court is hearing the NTO 3.0 matter daily. The Kerala High Court had been adjourning the matter without granting any interim relief to the AIDCF. Both sides have engaged high-profile lawyers like former Attorney General of India Mukul Rohatgi and Abhishek Manu Singhvi to fight their cases.
10. NTO 3.0 was to be implemented in the month of February 2023 and most broadcasters wanted to go for a price hike, as they had not increased the prices in the last three years due to uncertainty over NTO implementation.