Broadcaster Sony Pictures Networks India and direct-to-home (DTH) operator Tata Play are embroiled in a dispute over the removal of Sony channels from Tata Play’s consumer packs, according to a report by The Economic Times. Tata Play cites declining popularity and cost savings for consumers as reasons for the removal, while Sony claims the move is retaliatory following their request to audit Tata Play’s subscriber management system (SMS). Sony is considering legal action due to an existing contract between the two companies.
This controversy mirrors a previous issue between Sony and Tata Play over the removal of SonyLIV from Tata Play’s Binge OTT service due to payout disagreements. The recurring conflicts highlight the ongoing tensions in the industry as traditional TV faces competition from digital platforms.
Sony’s exploring legal action?
Sony has accused Tata Play of retaliating after the broadcaster requested an audit of Tata Play’s SMS due to apparent discrepancies. The report indicates that Sony is exploring legal options, arguing that the two companies renewed their contract in the first quarter of this year. Sony also criticised Tata Play for making the decision without prior notice or consideration for subscriber preferences.
Tata Play’s justification on removal of channels
Tata Play CEO Harit Nagpal defended the removal of Sony channels, stating it complies with regulations and will save customers Rs 50-60. He emphasised that Tata Play’s SMS is regularly audited by Telecom Regulatory Authority of India (Trai) auditors and is open for broadcaster audits. Nagpal noted that Sony channels could still be subscribed to individually, highlighting that despite the removal, only 18,000 out of one million users requested to add Sony channels back.
Broader implications of Sony-Tata Play dispute
The dispute highlights broader challenges in the industry, with increased competition from streaming services and stagnation in the pay-TV business. Market watchers foresee more conflicts between broadcasters and distributors as the overall subscription revenue pool shrinks. Broadcasters like Viacom18 and Disney Star are demanding higher payouts due to their significant investments in sports, forcing distributors to reallocate content spending.
First Published: Aug 02 2024 | 1:02 PM IST
