All India Digital Cable Federation, lobby group for the multi-system operators, wants broadcasters to keep a level playing field for over-the-top and cable TV services.
The AIDCF has written to Star India, Multi Screen Media and IndiaCast Media Distribution, saying that broadcasters are releasing content for free on OTT platforms, but cable TV companies are made to pay for the same content. The difference in pricing is hurting MSOs as they end up paying more for content that is already available for free on OTT platforms, according to Indiantelevision.com.
“Some of our subscribers have started complaining saying, ‘Why should we pay you for the content, which is available free of cost via say hotstar or Sony Liv,’” a source aware of the talks told Indiantelevision.com.
According to the group, several broadcasters are using OTT platforms to simulcast content, which is eroding cable TV companies’ profits.
“Star India, on one hand offers simulcast or immediate transmission of fresh popular content completely free of cost to its OTT subscribers on hotstar and on the flip-side, it charges the MSOs huge sum for the same set of content,” the source added.
According to AICDF, cable TV industry pays broadcasters subscription fees as well as content fees. The body wants broadcasters to either make their OTT platforms a paid service or distribute the same content free-of-cost to other players, according to Indiantelevision.
In related news, AIDCF has opposed the recent entertainment tax hike in Delhi, saying that the increase in tax will adversely affect cable TV industry.
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