Tata Play Removes Sony Channels from Curated Packs Due to Low Viewership
Tata Play, one of India's leading subscription-based satellite television service providers, has decided to remove Sony Entertainment channels from its specially curated subscriber packs. This decision, announced on Thursday, was primarily driven by the low viewership of these channels.
Harit Nagpal, MD & CEO of Tata Play, explained the rationale behind this move. "We at Tata Play have always prioritized customers while designing our processes. Our analysis, supported by BARC data, reveals that most subscribers have four or more times the number of channels than they actively watch. Due to the lack of return path data, it is not possible to track who’s watching and who’s not. Consequently, we are streamlining channel packs by removing less-watched channels and adjusting monthly charges accordingly," he stated.
Subscribers who still wish to watch the removed channels can easily reinstate them by giving a missed call. Nagpal added, "We anticipate that at least 75% of customers whose packs have been modified will benefit from the reduced charges."
The Sony-Tata Play Conflict
The decision to remove Sony channels has sparked a conflict between Sony Pictures Networks India (SPNI) and Tata Play. SPNI claims that the channel removal is a retaliatory move following their request to audit Tata Play's subscriber management system (SMS) due to observed discrepancies. Sources indicate SPNI is considering legal options against Tata Play's decision, as the companies have a valid contract renewed in the first quarter of this year.
Harit Nagpal defended the action, stating, "Our customers will save Rs 50-60 due to the removal of SPNI's channels from packages." He clarified that the removal does not violate regulations, and Tata Play’s SMS, regularly audited by TRAI, is open for broadcaster audits.
Nagpal emphasized that over 50% of Tata Play's nearly 10 million subscribers have SPNI’s Hindi channel pack, while SET holds only a 9% share in the Hindi GEC market. "As a service provider, I am duty-bound to take care of the interests of my broadcast partners by providing them reach and my customers by reducing burden on them," he added.
Market Implications
Market analysts foresee more disputes between broadcasters and distributors as the pay-TV sector faces increasing competition from streaming services and DD Free Dish. "Viacom18 and Disney Star are seeking significant payout hikes from distributors due to their massive investments in sports. Distributors will have to reallocate content spending among broadcasters as the overall subscription revenue bucket shrinks," reported the ET Bureau, citing a TV distribution executive.
Nagpal assured users they could still subscribe to the SPNI bouquet or individual channels by giving a missed call. "Since morning, SPNI channels have been removed from 1 million users' packs. However, we have received only 18,000 requests from customers for Sony channels/packs throughout the day," he added.
SPNI accused Tata Play of making arbitrary decisions without prior notice or consideration of subscriber preferences. The companies had previously clashed over the removal of SonyLIV from Tata Play's OTT packs due to increased payout demands during contract renewal.
Looking Ahead
The decision by Tata Play to remove Sony channels reflects a broader trend in the pay-TV industry, where service providers are increasingly focusing on streamlining their offerings to meet subscriber demands for more cost-effective and customized viewing options. As the industry continues to evolve, the balance between content availability and subscriber preferences will remain a critical issue.
For subscribers, this move could lead to significant savings and a more tailored viewing experience. However, the ongoing disputes between broadcasters and distributors highlight the challenges facing the pay-TV industry in the digital age.
Sources