Cable TV
Shemaroo to offer cable operators movies on licensing model
MUMBAI: Shemaroo has entered into an exclusive agreement with Novex Communications for licensing rights of all its movies to cable TV operators. The home video player, which also has a huge movie library for satellite telecast, was earlier selling its cable TV rights directly to multi-system operators (MSOs).
The movies for cable TV telecast which are already with Hathway Cable & Datacom will also be transferred to Novek after the expiry of its term. Hathway had bought five year rights in a bulk deal, a majority of which are expiring by the end of this year.
Shemaroo will, thus, be doing away with the fixed fee model whereby it was selling cable TV rights to MSOs. “We will be able to maximise our revenue through the licensee model. We are given a minimum guaranteed amount and on increased growth, will have a revenue share,” says Shemaroo Films MD Raman Maroo.
Already in the kitty is a collection of over 500 Hindi movies, while at least 15-16 will be added every month. “Almost 80 per cent of what we had sold to Hathway would expire by the end of this year. We will be assigning all our movies to Novex for cable TV exploitation. We have struck a two-year exclusive deal with them,” confirms Maroo.
Novex Communications plans to charge cable operators a fee of Rs 35 per subscriber, though in reality most of the agreements will be lumpsome deals. “We will enter into annual deals with cable operators. Unlike most of the other movie content suppliers, we will provide actual software to cable operators. We will have at least 700 movies for licensing,” Novex Communications promoter Ketan Kanakia says.
Novex has already signed a deal with the HFCL Infotel subsidiary Connect Broadband Services Ltd for J&K, Himachal, Punjab and parts of Haryana.
MSOs, who run cable movie channels bank on the acquisition model. Cable movie channels CVO and CCC, promoted by MSOs Indusind Media and Hathway respectively, acquire movies for cable TV telecast. On the other hand, it is the licensing model which is popular with bulk of the cable TV operators.
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.
