Multi-system operators (MSO) in the city are divided over STAR India’s new subscription terms that cable operators fear will put their business on the rocks.
STAR India has offered two options to the MSOs — go for a la carte subscription of its 30 channels, including the four sports channels, or sign an agreement to provide channel bouquets to a fixed percentage of homes.
Either way, the cable bill will go up.
If an MSO signs the a la carte agreement, all 30 channels will go off air from the second week of November. Subscribers will, however, have the option of paying a la carte rates to watch STAR channels of their choice.
If the MSO signs the other agreement, it can retain STAR channels in its packs but subscribers will have to pay more than what they are paying now every month.
STAR announced discounts for MSOs on Monday subject to fulfilment of certain conditions such as its top seven channels, including STAR Plus and STAR Jalsha, reaching at least 91 per cent of the subscriber base.
If MSOs agree to the new terms, the monthly subscription paid by cable homes will increase by Rs 40 to Rs 80 while the number of channels will decrease.
The MSOs have had several discussions since STAR announced its new pricing mechanism but the logjam has yet to be broken.
Industry sources said at least one major MSO was keen on continuing to have a certain number of STAR channels in its packages but others were against it. “The terms and conditions of STAR are very intricate. We are still confused. Some aspects are quite unclear,” said the director of a city-based MSO.
He said a meeting of MSOs from across the country on Friday in Delhi could shed some light.
Cable operators said they would lose subscribers to DTH players — such as TATA Sky and Dish TV — if the subscription rates were increased.
“Lower prices (cable subscription) draws people to cable TV but that won’t remain the case once the new terms (of STAR) are accepted. At the moment, the highest pack offered by DTH players comes at Rs 450-Rs 500 and you get all the channels. In cable TV, you pay Rs 320 for the highest pack. This is likely to go up to Rs 400 or more. Still, you will not get all the channels,” said a cable operator at Lake Town.
“It will be difficult to completely black out the STAR list. Most people will subscribe a la carte at least one sports channel of STAR, say the one where the Indian Super League matches are broadcast, or one of your regional favourites from its cluster of channels. Even that will drive up the monthly bill.”
Apurba Bhattacharjee, the leader of a cable operators’ union, said: “There is no question of raising the rates because we are already having trouble collecting the subscription of Rs 180 plus taxes for the base package from certain areas.”
He said the broadcaster has announced incentives for MSOs and they in turn were holding discussions among themselves. “Neither party is consulting us. But we are the ones who collect the subscription from the ground and face all the uncomfortable questions,” he added
Bhattacharjee said if push came to shove they would switch off set-top boxes and strike work.
Ratan Jaiwsal, another leader of cable operators, said they were waiting for an official communication from the MSOs and “won’t let them raise subscriptions at any cost”.
They said accepting STAR’s terms would open the floodgates for other broadcasters such as ZEE and Sony to follow suit with similar changes in subscription rates.
