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Tag: Sony

  • MNC media juggernaut arrives

    MNC media juggernaut arrives

    Mumbai: The National Company Law Tribunal’s (NCLT) approval for the Zee Entertainment -Sony merger without conditions offers further respite for Z valuation, which has been muted for the past two years (the stock has not given any absolute returns). The company will now move to Registrar of Companies to file for the merged entity once the final NCLT order is released; in the interim, we await the outcome of the SEBI and SAT cases against the Goenka family, the promoter, which may not have any adverse impact on the merger, as Punit Goenka has already stepped down from the Board; in a worst case scenario, the Board and shareholders will appoint a new CEO in case SAT order is against Punit Goenka. Post the regulatory approvals, Z will be delisted, and the merged company will be relisted as Sony-Zee wherein 100 shares of Z will enable shareholders to get 85 shares of the merged entity (~2-3 months process). We do not expect any change in the deal contours despite the long delay, as NCLT has approved the scheme. Further, Sony will get a majority shareholding of 50.8 per cent in the merged entity whereas the Goenka family’s stake will move up to 3.99 per cent, which includes the non-compete fee. We do not expect any impact from creditors filing a case against the NCLAT order.

    Moat remains for the merged company

    Z-Sony commands an ad market share of 24 per cent as on CY22, below the other large peer, Star-Disney, which is at 33 per cent; formation of a large entity on the broadcasting side would lead to cost and revenue synergy, which would offset the negative impact of lower growth rates (India TV ad revenue CAGR has been flat over FY20-23).

    Valuation: reiterate Buy with a higher TP of Rs 340

    We expect better execution in terms of strategic initiatives, due to global expertise and better CG (corporate governance) initiatives , which should propel higher cashflow. We do not expect Z-Sony valuation moving to 32- 33x fwd. P/E (peak valuation multiple in FY18). This is because India’s media landscape has changed with 1) TV broadcasting growth rates converging, and 2) digital business offering limited opportunity for monetization & scale due to disruption; however, we expect the negative impact to be offset by: 1) the merged company, and 2) an MNC-backed firm, which would lead to P/E at a 40 per cent discount vs peak (32x one-year forward). We introduce FY26E for the merged entity and value the core broadcasting business at 20x (from 17x) one-year forward P/E (potential exit of Disney from linear TV may enable Z-Sony to gain market share). We rollover to 24 Sept (since synergies will take some time to kick in) SOTPbased TP of Rs 340 from Rs 300 (after factoring in higher sports losses), with a cash infusion from Sony, synergy and valuing the OTT business 4x one yr. fwd. EV/Sales; our PAT estimate incorporates potential OTT losses.

    The credit of this article goes to Elara Capital SVP Karan Taurani.

  • Disney India to scale down it’s linear TV business

    Disney India to scale down it’s linear TV business

    Mumbai: Reportedly, Disney India may scale down its linear TV business or seek strategic options. It reported an EBITDA margin (with OTT losses) of four per cent (average of FY19-22), due to hefty investments/losses in high-cost cricket content. Zee’s (Z IN) average EBITDA margin (with OTT) was 24 per cent in FY19-22. As per our assessment, unit economics of the TV business is strong, led by healthy profitability margin (~30-32 per cent EBITDA for larger broadcasters core Tv business, ex OTT losses).

    Digital has gained sharp traction since the launch of affordable 4G data, as the India OTT market has posted a CAGR of 19 per cent in FY19-23 to USD 2.1bn. Also, TV industry CAGR declined one per cent in FY19-23, on: 1) regulatory concerns on ARPU, 2) tepid ad environment in linear TV and 3) consistent drop in viewership and consumption patterns. Despite this, TV is still the largest medium after digital, with an ad market share of 34 per cent in FY23 (dip of 330bp from FY20).

    We continue to believe that despite converging growth rate, linear TV medium is a key mode of mass campaigning for larger advertisers (FMCG contributes 45 per cent to TV ad revenue), given the reach/scale it has. Digital has the potential to grow, but unit economics are not yet proven. No larger OTT platforms in India have turned profitable despite: 1) launch

    since 2017 (post 4G data becoming cheaper), and 2) strong adoption/during Covid, which increased time spent/consumption. Also, India OTT has many concerns such as: 1) price sensitive market (lower APRUs), 2) higher distribution costs (heavy dependence on telcos/OEM, 3) higher content costs, 4) lower wired broadband penetration and 5) fragmented nature of the OTT market (multiple languages). This further makes break-even or profitability is difficult for any OTT platform, in the near- or medium-term. We, thus, prefer the linear TV business from a profitability standpoint and believe it will be a win-win for India despite tepid growth rates, as digital is an expensive medium. This may be a challenge to scale at mass – Digital ARPU for a consumer with major OTT platforms subscriptions and data costs is Rs 1,500, 4x higher than that of TV ARPU (Rs 350).

    We believe an exit or a strategic change by Disney in India may augur well for peers such as Zee, Sony, Viacom18, SUNTV, enabling a strategic shift in the ‘go to market’ strategy, in turn benefitting other players to gain market share. Subject to regulatory approvals (NCLT), Zee-Sony merger may be the biggest beneficiary of any changes in Disney management or market strategy, as Zee-Sony commanded an ad market share of 25 per centin FY22, slightly below Disney’s 32 per cent. The merged entity (subject to approval) may thus see a big valuation re-rating , on likelihood of market share loss by market leader, Disney India. Disney India enjoys strong recall across genres such as urban GEC, Tamil, Telugu, Marathi, and sports, which together contribute 65 per cent to India’s TV revenues. TV may become further consolidated post Z-Sony merger with top two players (Z-Sony and Disney India) commanding ~60 per cent ad market share, leaving little or no potential for peers to gain (or spike) market share. We believe there is also a likelihood of Viacom 18 (73 per cent owned by RIL/TV18, 11 per cent TV ad market share)- the third largest broadcaster after Zee/Sony and Disney, becoming a strategic partner with Disney India as the former is aggressively seeking to make inroads in the media segment (TV via TV18/NW18; digital via Jio Cinema).

    This scenario too may not be very disruptive for the Z-Sony merged entity as it leaves with two players having an even larger share in the TV ad market. India OTT market is a long haul – Expect early signs of consolidation in the medium term, but broadcaster-based OTTs (Zee, Sony, Disney), Jio Cinema (largest telecom player) and global giants such as

    Amazon and Netflix may eventually command a lion’s share in this market. We expect smaller OTT platforms to tie up with these larger platforms for distribution/scale. Consolidation is the only way OTT platforms in India may move closer to break-even or profitability helped by 1) lower content cost 2) tech cost efficiency and 3) bargaining power with distributors. OTT is a business of scale/depth as platforms with a large customer base and strong content library may be the first ones to attain profitability due to efficiency on technology and distribution costs.

    The credit of this article goes to Elara Capital SVP Karan Taurani. 

  • Axis Finance moves to NCLAT – more noise, no impact

    Axis Finance moves to NCLAT – more noise, no impact

    Mumbai: Axis Finance has approached the National Company Law Appellate Tribunal (NCLAT), Delhi against the National Company Law Tribunal (NCLT) order approving the merger of Zee and Sony. The NCLAT has served notice to Zee in response to Axis Finance’s plea.

    We believe the above issue of Axis Finance approaching the National Company Law Appellate Tribunal (NCLAT) will not have any impact on the merger between Zee and Sony because the claims being pursued by Axis Finance, which amount to Rs 1,000 mn, are not directed at Zee but rather at its parent company, Essel Group. As mentioned in the NCLT merger order (Zee/Sony), Axis Finance has previously approached various legal bodies, including the Debt Recovery Tribunal (DRT) and high courts, for above claims; however, judgements on the same have not been in their favour (Axis Finance). Therefore, we believe these claims lack merit and will not impact the merger. Also, appeals with NCLAT may continue for months even after the merged company is formed, just like in the case of PVR-Inox merger (Consumer Unity & Trust Society appealed in NCLAT against the merger and the case got dismissed in August 2023 – six months after the merged company of PVRINOX was formed).

    As for the current status of the merger, the merged company is progressing with the Registrar of Companies (ROC) filing process, post receipt of the NCLT merger order. They are also engaged in discussions regarding Closing Precedents (CP) (the merged company may want to include July/August financials as well), which may result in a delay of two to three weeks in the merger timeline. We believe the record date is usually given one week prior to delisting. Considering the marginal delay in CP, the record date for the merger could be towards the last week of October 2023. Subsequently, relisting is expected to take place in the first or second week of December 2023 vs our earlier expectation of the second week of November 2023. Additionally, the company will need to submit details of the merged co. Board of Directors to the Ministry of Information & Broadcasting (MIB), before the record date is finalised.

    Further, the SEBI/SAT issue (with promoters) too may not impact the merger timelines as the NCLT merger approval is without any condition.

    We have a BUY recommendation on Zee with a 24 Sept TP of Rs 340 – we maintain our positive stance on the company; PFA our latest company update post the NCLT merger approval.

    The credit of this article goes to Elara Capital SVP Karan Taurani.

     

  • Elevate your audio experience with these incredible gadgets

    Elevate your audio experience with these incredible gadgets

    Mumbai: If music is your ultimate source of solace and joy, then you’re in for a treat. We’ve scoured the tech landscape to bring you a selection of cutting-edge gadgets that promise to take your audio experience to new heights. From crisp beats to immersive melodies, these devices are tailor-made for the discerning music enthusiast. Welcome to your very own “Music Lover’s Paradise.”

    Nokia 130 Music: Start your audio journey with simplicity and nostalgia. The Nokia 130 Music is not just a phone, but a compact music player that lets you groove to your favorite tunes on the go. With its long battery life and dedicated music buttons, you can relive the charm of the past while enjoying your modern-day playlists. Featuring a big battery and a powerful speaker, the Nokia 130 lasts long and plays loud. Whether you want to go hands-free on calls or play the FM radio for the entire room, it delivers clear sound from dawn till dusk. Durable and user-friendly, the Nokia 130 will stand by your side day in and day out. Press and hold the music key to open the MP3 player and dive into your tracks stored on the MicroSD card. Alternatively, tune into local stations with the FM radio. Whichever option you choose, you can enjoy your music all day long, using headphones or the built-in improved loudspeaker. The choice is yours.

    Learn more about Nokia 130 Music

    Nokia 5710: With the Nokia 5710, music becomes a lifestyle. This feature-rich phone boasts an integrated music player that ensures your tunes sound their best. Plus, its sleek design and customisable features make it a statement piece for any music aficionado.

    Your music, your rules. The Nokia 5710 XpressAudio features a unique and game-changing design, purpose-built for new realms of audio freedom. The phone houses a pair of wireless earbuds beneath a sleek and robust slider – pop them out when you want to listen and put them back to charge when you’re done. And if you want to listen to music with friends, just switch to the phone’s loudspeaker.

    Discover the Nokia 5710 XpressAudio

    Sony Party Speaker SRS-XV800: Turn any gathering into an unforgettable music experience with the Sony Party Speaker SRS-XV800. This powerhouse delivers powerful sound that fills the room, while its dynamic lighting effects create a club-like ambiance. Bring the party wherever you go!

    Whether you’re hosting an epic party or enjoying your favorite movie or TV show, this speaker will provide the immersive experience you need. The XV800 offers powerful, room-filling sound no matter what you’re listening to or where you’re listening from. So, don’t compromise—play music loud and clear or enhance your movies and TV with the XV800.

    Life should be lived at full volume. That means getting your friends together, turning up the music to full volume, and dancing all night to clear, rich sound. With our new X-series range of speakers, you can make the most of every single moment, power parties you’ll remember forever, and always live your life out loud.

    https://shopatsc.com/collections/all/products/sony-srs-xv800-x-series-wireless-portable-bluetooth-karaoke-party-speaker-ipx4-splash-proof-with-25-hrs-battery-tv-sound-booster-built-in-handle-wheels-omnidirectional-sound-and-ambient-lights-new

    Sony Earbuds WF-C700N: Immerse yourself in a world of musical bliss with the Sony Earbuds WF-C700N. These true wireless earbuds offer noise cancellation, allowing you to escape into your melodies without any distractions. Enjoy premium sound quality and convenience rolled into one.

    The WF-C700N headphones with noise-cancelling, all-day comfort, and immersive sound quality allow you to enjoy music anywhere. Cancel out background noise with Noise Sensor Technology or use the Ambient Sound Mode to stay connected to your natural surroundings. Adjust ambient sound with the Sony | Headphones Connect app to control your listening experience.

    https://shopatsc.com/collections/all/products/sony-wf-c700n-bluetooth-truly-wireless-noise-cancellation-in-ear-earbuds-360-ra-multipoint-connection-10-mins-super-quick-charge-20hrs-batt-life-ipx4-ratings-fast-pair-app-support

    Tecno Pova 5 Pro: Unleash your music’s potential with the Tecno Pova 5 Pro

    This smartphone isn’t just about calls and texts—it’s a pocket-sized music studio. With powerful speakers and enhanced audio features, your tracks will resonate with depth and clarity. The RGB light at the back of the phone resonates with the emotions of digital natives. This LED light matches with the rhythm of the music with its Pure and Party mode vibing to your soulful party music.

    When it comes to enhancing your audio experience, these gadgets are your keys to unlocking a world of sonic wonders. From the nostalgic charm of Nokia’s music phones to the contemporary brilliance of Sony’s speakers, earbuds, and headphones, your musical journey is about to get a serious upgrade. So, immerse yourself, groove on, and let the melodies transport you to your very own music lover’s paradise.

    Explore the Tecno Pova 5 Pro

  • KCCL signs subscription agreement under NTO 3.0

    KCCL signs subscription agreement under NTO 3.0

    Mumbai : The interconnection subscription agreement with the broadcasters was signed by MSO Kerala Communicators Cable Ltd (KCCL) in accordance with the Trai-mandated NTO 3.0 after UCN.

    Now that the Trai’s new rate order has been modified, KCCL has joined a growing group of MSOs, including Siti Cable, KAL Cables, Tamil Nadu Arasu Cable TV, and Thamizhaga Cable TV, that have agreed to negotiate interconnection agreements with the broadcasters.

    Even as the legal dispute between cable operators represented by the AIDCF (All India Digital Cable Federation) and the broadcasters continues in the Kerala High Court, there now appears to be a rift within the cable fraternity in its fight against the broadcasters regarding signing the interconnection agreements under the NTO 3.0.

    Den, Fastway Transmissions, GTPL Hathway, Hathway Digital, and other MSOs are among those that are still engaged in this conflict with the broadcasters.

    Leading three broadcasters (Sony, Disney Star India, and Zee Entertainment) cut off their signals to nearly ten MSOs on February 19 who are AIDCF members.

    Broadcasters are justifying the increase in price after a four-year hiatus. Cable operators, on the other hand, claim that the price increase is exorbitant and will raise consumers’ monthly cable bill. They have also filed numerous petitions against the amended tariff regime in the country’s high courts.

    AIDCF claims that despite the fact that the case is in court, these major broadcasters disconnected their signals.

    Meanwhile, AIDCF has warned advertisers, media planners, and ad agencies, against advertising on Disney-Star, Sony and Zee, because their recent actions have “deprived more than 25 million households across India from watching their channels since Saturday, 18 February 2023.

    The federation claimed that the 25 million homes account for nearly 35 per cent of the pay TV market in India.

    “Are you still getting the reach that you have paid for? Your advertisements are not reaching more than 200 million consumers across all states and Union Territories in India for the past three days. More than 46 billion minutes of viewing time are being lost per day across India on the largest cable networks in India including GTPL, DEN, Hathway, Fastway, In Cable, NXT Digital, Asianet, KCCL, UCN and many more. These networks cater to large audiences in HSM as well as South with dominant presence in Punjab/Haryana/ Chandigarh HP, UP Uttarakhand, Gujarat, Rajasthan, Maharashtra, West Bengal Odisha, Madhya Pradesh/Chhattisgarh, Bihar/Jharkhand, North-East, AP Telangana, Kamataka, Kerala, Tamil Nadu, etc,” said a release by AIDCF.

    The industry body warns the advertisers to take an informed decision when they advertise on any of the channels including Star Plus, Zee TV, Sony.

  • Zee & Sony agree to sell three hindi channels to address CCI’s anti competition concerns

    Zee & Sony agree to sell three hindi channels to address CCI’s anti competition concerns

    Mumbai: Sony and Zee have agreed to sell three hindi channels voluntarily – Big Magic, Zee Action, and Zee Classic – in order to address potential anti-competitive concerns raised by their proposed mega-merger. The regulator made public its detailed 58-page order on Wednesday, more than three weeks after giving its approval for the transaction.

    According to the order, the two groups have agreed to divest Big Magic, a hindi general entertainment channel, as well as Zee Action and Zee Classic, both Hindi film channels.

    They voluntarily agreed to the modification to the proposed deal after CCI determined that the deal would have a significant adverse effect on competition.

    They presented their proposal to the Competition Commission of India (CCI), which approved the deal with conditions on 4 October.

    CCI announced on October 4 that it had approved the “merger of Zee Entertainment Enterprises Limited (ZEEL) and Bangla Entertainment Private Limited (BEPL) with Culver Max Entertainment Private Limited (CME), with certain modifications”.

    Previously, CME was known as Sony Pictures Networks India Pvt Ltd. (SPNI). In September 2021, ZEEL announced a non-binding term sheet with SPNI to merge their linear networks, digital assets, production operations, and programme libraries.

    Deals exceeding a certain threshold must be approved by CCI, which seeks to ensure fair competition in the marketplace.

    CCI announced on 4 October that it had cleared the proposed Zee-Sony merger deal, which was announced in September of last year.

    To ensure fair competition in the relevant markets, the regulator has also mandated that the purchaser meet a number of requirements before purchasing the three channels.

    One of the requirements is that the buyer not be “Star India Private Limited or Viacom18 Media Private Limited (including their respective affiliates)”.

    The purchaser should be completely independent of and unconnected to the resulting entity and its affiliates. According to the order, it also cannot be a former or current employee or director (or the spouse or child of such an employee or director).

    Among other things, the purchaser must have the financial resources, expertise, and incentive to keep and grow the divestment business as a viable and active competitor to the parties and/or the parties’ affiliates.

    “The purchaser should neither be likely to create any prima facie competition concerns, nor give rise to a risk that the implementation of the order will be delayed, and must, in particular, reasonably be expected to obtain all necessary approvals from the relevant regulatory authorities for the acquisition and operation of the divestment business,” the order said.

    The CCI further stated that the planned merger would be judged to have had a significant detrimental impact on competition in India if the parties did not comply with the voluntary adjustments presented.

  • Barc Wk 37-40’22: News18 India outperforms GECs in terms of reach

    Barc Wk 37-40’22: News18 India outperforms GECs in terms of reach

    Mumbai: News18 India has outperformed popular GECs in terms of reach. News18 India claimed that they have outperformed top general entertainment channels such as Star Plus, Sony and Zee TV with a cumulative reach of 8.7 crore.

    According to Barc data (HSM; All 15+; Avg. Wk 37-40’22), the cumulative reach of Star Plus stood at 7.6 crore, whereas the cumulative reach of Sony and Zee TV stood at 6.56 crore and 6.52 crore, respectively.

    Commenting on the viewership data, Network18 Hindi News CEO Karan Abhishek Singh said, “News18 India has a reach significantly better than all the major GECs. Our reach and viewership numbers show the kind of audience trust we enjoy. For advertisers, it’s a great opportunity to use the news genre as their preferred vehicle and to take their brand to audiences in a much more efficient and impactful way.”

    For over three months now, News18 India has been number one in terms of both viewership and reach in the Hindi news genre.

    This week, News18 India maintained its lead in the national Hindi news channel segment with 15.9 percent (Wk. 40’22, TG: 15+, HSM), compared to TV9 Bharatvarsh’s 13.0 per cent, India TV’s 12.6 per cent, and AajTak’s 12.5 per cent market share.

    The channel has performed exceptionally well in the highly sought-after 9 – 10 p.m. prime time slot.

    Kishore Ajwani of News18 India has a market share of 18.4 per cent, while Sudhir Chaudhary of AajTak is ranked fourth with a market share of 14.1 per cent.

    Furthermore, News18 India has nearly three times the viewership of ABP News during the prime time period of 9 to 10 p.m.

  • Simon Cowell’s Syco Entertainment inks $125 mn Got Talent securitization deal

    Simon Cowell’s Syco Entertainment inks $125 mn Got Talent securitization deal

    Mumbai: Global media and entertainment investment bank ACF has recently advised Syco Entertainment, which resulted in Simon Cowell securitizing the “Got Talent” franchise by signing a groundbreaking $125 million deal.

    The Got Talent franchise includes America’s Got Talent and Britain’s Got Talent formats that have been commissioned in 72 territories worldwide, including in India on Sony.

    The deal will allow the company to use this war-chest to grow the business through a mixture of strategic acquisitions and organic growth projects.

    As advised by ACF and law firm Memery Crystal throughout the complex investment deal, Syco worked with their team in both the UK and US over a two-year period. The deal is the first of its kind as it includes securitization of various aspects of the Got Talent intellectual property, which comprise production margins and fees, digital income, franchise and original content sales, and sponsorship income. ACF’s innovative approach used a structure for the Got Talent format more commonly applied to the music industry’s royalty income streams.

    ACF founder & CEO Thomas Dey said, “ACF worked with Syco to formulate this financial strategy to support its plans and managed the entire process as the lead bank. Our brief was to create a structure to enable the company to maximise the full potential of its existing passive royalty income stream. ACF has created a winning formula using our extensive experience from across the media and entertainment industries. We are certain that this ground-breaking structure will be one that we will use for many media formats in the future.”

    Syco Entertainment director Ian Rosenblatt OBE said, “ACF’s certainly got talent. Their team, led by the ever-tenacious Thomas Dey, delivered on their promises and introduced the perfect partners to achieve our goals.”

  • Devdatta Potnis parts ways with Cosmos-Maya

    Devdatta Potnis parts ways with Cosmos-Maya

    Mumbai: After a ten-year partnership during which time the company grew steadily, Devdatta Potnis, the current chief growth officer, has announced his decision to leave Cosmos-Maya.

    Dev joined the studio as head of sales in 2011 and was instrumental in getting the animation studio’s first domestic IP, Motu Patlu, off the ground. The show is celebrating its ten-year milestone this year. In 2015, he planned another strategic move, diversifying the studio’s revenue streams by establishing one of the biggest digital kids’ networks globally, WowKidz, which has over 90 million subscribers worldwide across YouTube and Facebook. With Dev at the helm, the studio went on to produce a multitude of shows with leading kids’ broadcasters in India including Nickelodeon, Disney, Cartoon Network, Sony, Discovery and also cemented bonds with all the key OTT players like Amazon Prime Video, Netflix, Voot, Zee5 and Disney+ Hotstar among others.

    After this domestic success, the studio set its sights on international markets overseen by Dev. He placed Cosmos-Maya on a structured growth path across the European, Asian, and North American markets, and became the face of the animation studio globally. It was thanks to these consistent efforts, that the studio grew from 30 people to 1200+ artists & the coveted private equity investment came into the animation business, first with KKR backed Emerald Media in 2018 and then with TPG affiliate NewQuest Capital Partners in 2021. According to media reports, the company has grown phenomenally in the last decade, from one Indian series in 2012 to a market leadership position in India with a valuation of more than 90 million USD. Dev was a key architect in these endeavours.

    “It has been a pleasure working with this incredible company, Cosmos-Maya, and I thank the founders, Ketan Mehta, Deepa Sahi and Anish Mehta, who gave me the opportunity to grow this company, plan its strategic direction, and take it to the stage where it is now India’s #1 animation studio. I owe a lot of my professional expertise and development to Cosmos-Maya and the team, who will always be special to me, personally and professionally. I wish them all the best for the future,” said Potnis.

    Dev’s next move will be announced soon.

  • Delhi HC stays TDSAT order asking broadcasters to provide OTT content information

    Delhi HC stays TDSAT order asking broadcasters to provide OTT content information

    Mumbai: The Delhi High Court has stayed Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order and the proceedings until the next date of hearing. TDSAT issued an order last week requiring broadcasters to provide information on content available on over-the-top (OTT) platforms.

    In past legal processes, Trai has publicly indicated that it does not regulate OTT platforms or the content that is associated with them.

    “Prima facie, the court finds itself unable to sustain the order of 20 September by TDSAT,” said the order dated 28 September by Delhi HC.

    According to the High Court, the TDSAT was not authorised to make the ‘contested decision’ while the main dispute over whether it had the authority to issue the ‘contested direction’ was still being resolved.

    A source informes Indiantelevision.com that the court judge made oral remarks saying “what kind of order is this? Later he also said (in a lighter vein) there seem to be lofty principles in the order.”

    Broadcasters are allegedly breaking Clause 5.6 of the TV channel uplinking and downlinking guidelines by providing linear channel signals to OTT services, claimed Trai.  

    This clause requires broadcasters to make satellite TV signals available to registered cable operators, multi-system operators, direct-to-home players, and internet protocol TV service providers.

    As the clause reads, “The applicant company shall provide satellite TV channel signal reception decoders only to MSOs/cable operators registered under the Cable Television Networks (Regulation) Act 1995 or to a DTH operator registered under the DTH guidelines issued by the government of India or to an Internet Protocol Television (IPTV) service provider duly permitted under their existing telecom licence or authorised by the department of telecommunications or to a HITS operator duly permitted under the policy guidelines for HITS operators issued by the ministry of information and broadcasting to provide such service.”

    While OTT services are exempt from Trai oversight, broadcasters contend that Clause 5.6 has not been violated. They claim that both platforms controlled by broadcast networks and those owned by independent players are covered by this.

    Broadcasters including Sony, Star, and Sun TV had approached TDSAT to challenge Trai’s directive. The networks, on the other hand, had received no relief from the appellate tribunal, with TDSAT ordering them to provide the information to Trai within a week.

    The Court also questioned Trai’s authority to control OTT and make the requests for information that they did. In past legal proceedings, Trai has publicly indicated that it does not regulate OTT platforms or the content that is associated with them.

    When Trai requested certain broadcasters (such as Star India, Sony, and Sun TV) to submit detailed information on the content of TV channels that were available on OTT, the problem began.

    Dissatisfied broadcasters challenged Trai’s decision, which ordered the disclosure of information and architecture in TDSAT, among other things, by questioning Trai’s authority to request such information.

    Notably, the broadcasters asserted that Trai has always maintained in court proceedings that it does not regulate over-the-top (OTT) content.

    The TDSAT had previously provided broadcasters with ad-interim protection against Trai coercion. However, it later directed broadcasters to provide information, which resulted in the current petition before the Delhi High Court.