Cable TV
AIDCF asks b’casters to create level playing field for OTT & cable TV
MUMBAI: The All India Digital Cable Federation (AIDCF) is on a roll. The multi system operator (MSO) association, which first submitted its recommendations to the Information & Broadcasting (I&B) Ministry and then to the GST Committee, has now written to broadcasters with Over the Top (OTT) platforms.
The Association has written a letter to Star India, Multi Screen Media and IndiaCast Media Distribution. In the letter, AIDCF has stressed on how the broadcaster is giving content free of cost to its OTT platforms, while charging MSOs for the same content.
Giving an example of Star India’s OTT platform hotstar, a source close to the development tells Indiantelevision.com, “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.”
AIDCF’s letter to broadcasters, a copy of which is with this website, reads:
1) The cable industry is contributing huge subscription revenue to
broadcasters for the same set of content and programme.
2) It contributes to a large viewership for the channels the network has.
3) Also helps the broadcaster in gaining higher TRPs, which in turn leads to a better ad rate for the portfolio of channels thus increasing the advertisement revenue.
The letter points out that this scenario of offering simulcast/immediate transmission of fresh content completely free of cost to OTT subscribers is not favourable for the Cable TV industry and its relationship with broadcasters, considering the growth in the subscriber base for the broadcasters’ OTT application.
According to AIDCF, this is a threat to the pay TV cable business model, which defeats the purpose of paying huge license fees to broadcasters. “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,’” informs the source.
Giving free of cost content to OTT platforms is affecting the average revenue per user (ARPU) of the cable TV industry, subsequently hampering the growth of business at large.
AIDCF in its letter has asked broadcasters to create a level playing field amongst respective distribution platforms. “We have requested the broadcaster to make content available on their OTT platform a paid service with a subscription fees. Alternatively, the same content should also be made available free of cost to other distribution platform,” the source reaffirms.
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
