Cable TV
Cable ops real gainers of pay channels turning FTA: CSB report
MUMBAI: A report titled “Conditional Access or Catch 22 – Who Will Blink First?” compiled by the Citigroup Smith Barney (CSB) report (dated 15 May 2003) states the real gainers of pay channels turning free to air would be the cable operators.
The CSB report states that as per current CAS regulation, the cable operators are mandated to carry only 30 free-to-air (FTA) channels (of which about six to seven channels would be channels of the government-owned Doordarshan, which they have to carry per regulation).
The government has also mandated Rs 72 as the maximum price for the basic tier, leaving cable operators with little incentive to carry additional channels.
Consequently, the free-to-air channels will likely have to pay a ‘carriage fee’ to the cable operators to form part of the basic tier, according to the report. Hence, turning free-to-air may not be the panacea to all problems for the pay channels.
Finally, pay channels turning free-to-air would have negative implications for both advertisers and content providers. With a drop in subscription revenues it is likely that pay channels would seek to raise their advertising rates and cut back on content development costs.
Pay channels – forming part of the free-to-air tier
The report says that the definition of a pay channel reads in conjunction with the definition of basic tier suggests that there is nothing in regulations that prevents a pay channel to be part of the FTA basic tier. Technically speaking, in certain areas, a pay channel may tie-up with the MSO/LCO and be part of the free-to-air basic tier.
However, this solution can only work if the government does not regulate the basic tier price at Rs 72. If the free-to-air price remains at Rs 72, the LCO/MSO will have little to share with the broadcasters after recovering their basic costs.
If cable charges remain at the current levels of Rs 150-300, then of course this could be a possible solution; says the CSB report. But then that is status-quo – effectively today most pay broadcasters are in any case ‘negotiating’ for a share of this Rs 150-300 – issues of non-disclosure, consistent hikes by broadcasters, etc were the cause of the entire regulation in the first place.
The report adds that the only possible long-term solution to rectify this convoluted industry structure would be either a Direct To Home (DTH) implementation (associates of both Zee and Star have obtained licenses) or roll-out of cable services through telephone lines (Reliance Infocomm, BSNL have announced plans) – in both cases bypassing the local cable operator.
While both these solutions have implementation hurdles, they would be appropriate for addressing the Tier 1 high income household brackets ,which in any case is the
core population which all parties are fighting to address.
Attempting to stratify a 42 million strong cable household population across affordability and demographics as CAS seeks to do is a process with many pit-falls and too many short-term dislocations.
Also read:
One out of 6 cable households will get pay channels: CSB report
Tier 1 channels going ‘pay’ will have a negative impact: CSB report
Cable TV
Hathway Cable appoints Gurjeev Singh Kapoor as CEO
Leadership change comes as cable TV faces shrinking subscriber base and modest earnings pressure
MUMBAI: Hathway Cable and Datacom has tapped industry veteran Gurjeev Singh Kapoor as chief executive officer, marking a leadership pivot at a time when India’s cable television business is under mounting strain.
Kapoor will take over from Tavinderjit Singh Panesar, who is set to retire in August after a long innings with the company. Panesar, chief executive since 2023, has held multiple leadership roles at Hathway, including his latest stint beginning in 2022.
Kapoor brings more than three decades of experience in media and entertainment. He most recently led distribution at The Walt Disney Company’s Star India business, now part of JioStar. His career spans television distribution and affiliate partnerships, with stints at Sony Pictures Networks India, Discovery Communications and Zee Entertainment.
Panesar, with over three decades in the industry, has worked across strategic planning, distribution and business development in media, broadcasting and manufacturing. His past associations include ESPN Star Sports, Star India, Apollo Tyres and JK Industries.
The transition lands as the cable sector grapples with structural disruption. Traditional operators are losing ground to streaming platforms, while telecom and broadband players tighten the squeeze with bundled offerings.
An EY report estimates India’s pay-TV base could shrink by a further 30 to 40 million households by 2030, taking the total down to 71 to 81 million. The slide follows a loss of nearly 40 million homes between 2018 and 2024, a contraction that has already wiped out more than 37,000 jobs in the local cable operator ecosystem.
Hathway’s numbers reflect the strain. The company reported a consolidated net profit of Rs 93 crore for FY25, down from Rs 99 crore a year earlier. Revenue inched up to Rs 2,040 crore from Rs 1,981 crore. As of December 2025, it had about 4.7 million cable TV subscribers and roughly 1.02 million broadband users.
Kapoor steps in with a familiar brief but a shrinking playbook. In a market where viewers are cutting cords faster than companies can reinvent them, the new chief executive inherits a business fighting to stay plugged in.
