Tata Play has started removing SPNI channels from its bouquet, contending that the broadcaster’s channels, including flagship channel Sony Entertainment Television (SET), are losing popularity.
In a statement, SPNI claimed that the removal of channels from consumer packs is a retaliatory move that follows a request from the broadcaster to audit the DTH operator’s subscriber management system (SMS) due to the discrepancies observed in recent years.
Sources close to the development say that SPNI is considering legal options against Tata Play’s decision as the two companies have a valid contract in place that was renewed in Q1 this year.
Justifying the move, Tata Play CEO Harit Nagpal said that the company’s customers will save Rs 50-60 due to the removal of SPNI’s channels from packages.
He further clarified that the channel removal does not violate regulations, and Tata Play’s SMS, regularly audited by TRAI auditors, is open for broadcaster audit.”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 stated.Nagpal also argued that over 50% of Tata Play’s subscriber base, which totals up to nearly 10 million subscribers, has subscribed to SPNI’s Hindi channel pack, whereas SET has just 9% share of the Hindi GEC market.
Market watchers predict an increase in disputes between broadcasters and distributors due to stagnation in the pay-TV business as a result of increased competition from video streamers 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,” said a TV distribution executive.
Nagpal said users who want to subscribe to the SPNI bouquet or a la carte channels can still do so 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 also accused Tata Play of making an arbitrary decision without any prior notice or consideration for their subscribers’ preferences.
The two companies had previously sparred over the removal of SonyLIV from Tata Play’s OTT packs. Tata Play had removed SonyLIV from its Binge OTT aggregation service due to the increased payout sought by the platform during contract renewal.
