Cable TV
Cable Operators Welfare Federation counters IBF’s comments regarding NCF and NTO 2.0
MUMBAI: The Cable Operators Welfare Federation (COWF) has countered the IBF’s claims regarding NCF. The IBF had said that by keeping NCF at Rs 160, distributors could charge for something that DD Free Dish is giving out free.
COWF said that DD Free Dish is run on taxpayers’ money and channels pay a hefty sum to get a slot on it which they recover through ad rev.
In a letter, the COWF has said that since the advent of the TV business, broadcasters have been portraying the LCO community in poor light as “cheaters/goons who never declared proper numbers”.
The letter states, “This is perhaps a rare industry where a major stakeholder blames its distributors whenever things do not go their way. Once commercial terms are achieved, things go back to normal.” It goes on to say that broadcasters are also guilty of showing inflated declarations such as reach in order to gain advertisement tariff.
Over the years, cable operators have constantly kept abreast of all the latest technologies. MSOs and LCOs also run a business and need to recover costs, just as broadcasters, the letter goes on to mention.
“On the NCF, our observation in the past year is that its calculation is cumbersome and many customers still do not understand it and it takes a lot of our time explaining to customers how we have billed them. Hence we had suggested that a higher limit be set up for a fixed NCF for SD channels and HD channels, just as broadcasters were permitted a higher cap of Rs 19 per month, which will give us the freedom to charge as per different market scenarios and as per our ROW needs,” the letter states.
It even mentions that LCOs have tried to limit the rate increase by passing on benefits to customers. Some smaller MSOs have passed on the benefits to LCOs. Many MSOs have several channels in the FTA pack because they earn from carriage, marketing and placement fees, the letter adds.
In the end, the COWF requests the broadcaster community to work together. “We are open to discuss all means by which we can reduce NCF on a mutual basis as long as you can find ways to ensure that our revenues are protected,” it says.
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.
