Caught in tussle between Tata Sky and Sony Networks, consumers fume

The commercial tussle between DTH service provider Tata Sky and broadcasting company Sony Pictures Networks India has got their subscribers fuming.

Tata Sky decided to drop 22 channels of Sony on Monday, after the commercial negotiations between the two companies reached a deadlock over revenue sharing, as their contract is up for renewal. In addition, it has also dropped TV Today Network’s news channel India Today which is part of the bouquet of channels distributed by Sony Networks in India.

Tata Sky has instead asked its existing subscribers to give separate missed calls to be able to continue watching 11 channels which include SET, Sony SAB, Sony Six, Sony Ten and Sony Pix HD, besides TV Today’s Aaj Tak at “no extra cost.” However, subscribers soon took to social media to complain regarding difficulties in accessing missed call services, customer care services and restoration of some of these channels. In addition, subscribers who have already paid yearly and monthly subscription fees to Tata Sky questioned its move to drop these channels. Customers with multi-TV connections pointed out to further difficulties in getting the 11 channels activated on all their connections.

Industry experts said that DTH and cable TV companies routinely get embroiled in commercial disagreements with broadcasters on renewal of expired commercial contracts. However, there have been few instances of disconnection of channels on a distribution platform. And especially not in this manner.

War of words

Harit Nagpal, CEO & MD of Tata Sky, said, “Commercial negotiations with the broadcasters broke down as what they were seeking would have forced us to hike our prices. Hence, we have had to drop a few channels while keeping the popular ones on. While doing so, we are paying Sony much more for the 11 channels retained on the A la Carte rate, versus the contracted rate for three times these channels. We request our subscribers to bear with us, as we are doing this in their best interest.”

However, Sony has denied raising rates of channels and said that its channels were available under the TRAI-mandated Reference Interconnect Offer.

“Sony Pictures Networks India (SPN) and Tata Sky have over the years developed an excellent working relationship. It is therefore unfortunate that Tata Sky has unilaterally chosen to drop 22 SPN channels from its subscription, even though SPN has not increased the rate of its channels,” the broadcast company stated.

“Further, by compelling existing subscribers to give separate ‘missed’ calls even to continue watching the SPN channels they have already paid for, Tata Sky is not acting in consumer interest,” Sony Pictures Networks India added.

Sources said that Sony has been steadily adding new channels to its network in the past 2-3 years, besides beefing up its cricket slate by acquiring media rights from various cricket boards. In addition, the broadcaster is also learnt to be expecting the new contract to reflect the growth in Tata Sky’s subscribers over the years.

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