Cable TV
CAS rollout: MSOs look to channel package tiers
MUMBAI: Multi-system operators (MSOs) have initiated talks with some broadcasters for providing their bouquet of pay channels at special rates in the conditional access system (CAS) regime. This would enable cable networks to tier various channel packages for consumers.
The Telecom regulatory Authority of India (Trai) has fixed the a la carte pricing of pay chanels at a maximum of Rs 5 under CAS. The MSOs want broadcasters to price their bouquets below the average of Rs 5 per channel.
“We are in a very nascent stage of discussions. Some of the broadcasters have moved the courts and are, in fact, waiting for the verdict. We expect to have more definite proposals within a fortnight,” says Hathway Cable & Datacom managing director and CEO K Jayaraman.
The MSOs will tier different packages to make it price friendly for consumers. “We will be working out packages based on a combination of genres. This will be in addition to the a la carte pricing which, with a cap at Rs 5, is expected to be quite popular,” says Jayaraman.
Adds IndusInd Media and Communications Ltd (IMCL) director-in charge Ravi Mansukhani: “Once the broadcasters give us their bouquet pricing, we can work out our own bundling which will offer choice to consumers and make it more attractive than the a la carte pricing.”
The stumbling block to such negotiations at this stage, however, is a number of court cases filed by broadcasters questioning the Rs 5 cap fixed by the sector regulator. Broadcasters feel the regulated pricing is unfair and will hurt their subscription incomes.
Hathway and IMCL, meanwhile, will soon kick-off CAS awareness campaigns jointly. The estimated spend: Rs 10 million. Hathway plans to spend an additional Rs 5 million in the first phase, says Jayaraman. Hathway has already started marketing its digital drive in bus shelters, radio and other mass media platforms.
“We are also planning to invest independently through various marketing initiatives. This will be in addition to the joint campaigns where the spend could be Rs 10 million,” says Mansukhani.
The MSOs have started offering digital set-top boxes (STBs) and cable at an advance deposit of Rs 250 in the CAS notified regions of south Mumbai, Delhi and Kolkata. Consumers will have to pay a rent of Rs 45 per month only after 1 January, the scheduled date for implementation of CAS. If they are not happy, they can discontinue the service.
“We have started seeding 1,000 STBs a day since 1 November. We expect this to further pick up,” says Jayaraman. Hathway is aggressively pushing for digital cable in both Mumbai and Delhi.
IMCL has been slow to push the STBs to its consumers. “Once the marketing campaign gathers momentum next week, we hope to seed 1,000 STBs a day. The offtake should further speed up as we go forward,” says Mansukhani.
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.
