News Broadcasting
Even at 15:85 revenue share in broadcasters’ favour, all-channel cable bill will cross Rs 400
MUMBAI: When reality bit, it chomped. The pay channel rate card circulated yesterday by Star India and Sony Entertainment (Zee disowned it) at the meeting with the information and broadcasting ministry has burst the bubble that was building that the CAS rollout ride may not be that rough after all.
A breakdown of the proposed price structure makes one thing clear. If this is the way pay channels will be priced, the consumers’ cable bill will total at least Rs 417 in Mumbai. And that is only if the cable trade accepts the proposition put forth by Star and ESPN-Star Sports (and one assumes Sony as well) that revenue share should be 85:15 in favour of the broadcaster.
Zee, which has disowned the document, has been on record as saying that it was comfortable with a 50:50 revenue share. However, if the global norm is taken (which swings widely depending on whom you talk to) as 70:30 in favour of the broadcasters, then the total tab is Rs 458.
The math works out thus:
The total declared cost of all the four bouquets is Rs 175. For simplicity, let us put a a notional value of the three pay channels not on the list – Nickelodeon, Hallmark and Ten Sports – at Rs 25. Therefore the total cost of the pay channels is Rs 200. This is a net value and does not include tax and the cable service provider’s margin.
The Star revenue share model is 15 per cent to the cable operator so that will be examined first. A 15 per cent margin adds up to Rs 230. To that add the FTA package cost of Rs 72 which is Rs 302. Then there is the service tax of 8 per cent and entertainment tax that varies from state to state. Since it is 30 per cent for Maharashtra, that is the value that will be taken for Mumbai. Therefore Rs 115 is the tax. The total is Rs 417.
At a 30 per cent margin to the distributor the cost is Rs 260 + Rs 72 totalling Rs 332. Add the tax and the total tab is Rs 458.
A 50:50 revenue share costing works out to Rs 372. Add the tax and the total tab is Rs 513.
The demand by big distributors like Hinduja Group MSO INCableNet for a 70 per cent revenue margin is not even being considered here as being a non-starter.
And this tab does not include the monthly outgoes for the set top boxes, whether through rentals or hire purchase.
In the end analysis, there is no running away from the fact that at these prices, consumer uptake of STBs, upon which the smooth rollout of CAS hinges, is just not happening.
News Broadcasting
BBC to cut up to 2,000 jobs in biggest overhaul in 15 years
Cost pressures and leadership change drive major workforce reduction plan
LONDON: BBC has unveiled plans to cut up to 2,000 jobs, roughly 10 per cent of its global workforce, in what marks its biggest downsizing in 15 years.
The announcement was made during an all-staff meeting led by interim director-general Rhodri Talfan Davies, as the broadcaster moves to tackle mounting financial pressures and reshape its operations.
Between 1,800 and 2,000 roles are expected to be eliminated from a workforce of around 21,500. The cuts form part of a broader plan to save £500 million over the next two years, aimed at offsetting rising costs, stagnating licence fee income and weaker commercial revenues.
In a communication to staff, BBC interim director-general Rhodri Talfan Davies said, “I know this creates real uncertainty, but we wanted to be open about the challenge,” acknowledging the impact the move would have across the organisation.
The restructuring comes at a time of leadership transition. Former director-general Tim Davie stepped down earlier this month, with Matt Brittin, a former Google executive, set to take over the role on May 18, 2026.
While some cost-cutting measures are being implemented immediately, the majority of the structural changes are expected to roll out over the next few years, with full savings targeted by the 2027–2028 financial year.
The broadcaster had earlier signalled its intent to reduce its cost base by around 10 per cent over a three-year period, warning of “difficult choices” as it adapts to shifting economic realities and audience expectations.
With operating costs hovering around £6 billion annually, the BBC’s latest move underscores the scale of the financial challenge it faces, as it balances public service commitments with the need for long-term sustainability in an increasingly competitive media landscape.
