Cable TV
Siti Cable buys time, may have face-off with b’casters
NEW DELHI: Siti Cable’s franchisee cable operators in Delhi have expressed their initial inability to cough up additional subscription money for new channels and have sought more time to gauge consumers’ feedback, hinting that another round of face-off with broadcasters may be round the corner.
At a meeting held here yesterday, Zee Telefilms’ cable arm conveyed to its franchisees or joint venture partners that, amongst several issues, the one relating to increased outflow of subscription money (approximately Rs 71 per month per household) because of the launch of new channels and some existing ones turning pay needs to be addressed immediately.
As if on cue, the gaggle of cable operators said it would be “very difficult” to convince the consumer to shell out any additional sum, irrespective of the fact whether new channels are being served or not.
They also sought clarification that if, for example, 100 persons avail a particular pay channel, whether the MSO and broadcaster concerned would accept payment for those 100 households only or not.
Since such a system does not exist yet in India, Siti Cable executives, led by senior vice-president (operations) Subhash Grover, clarified as per “indications received” from broadcasters that such “flexibility” is non-existent. Subscription agreements have to be signed with broadcasters on the basis of existing connectivity of the bouquet as a whole, the cable ops were told.
It is a fact that in the year of price freeze, most broadcasters have managed to squeeze small cable ops to increase their subscription revenue and insisting either on minimum guarantee deals or payments based on an enhanced subscription base.
How has Siti Cable calculated the increased outflow to RS 71?
Zoom Channel (Times Group) Rs 7.50 – One channel
MTV and Nickelodeon (One Alliance) – Rs 6 – Two channels
Star One Rs 10 x 2= Rs 20 (based on existing connectivity) – One channel
Hungama TV Rs 6×2 = Rs 12 (based on existing connectivity) – One channel
Break Free Cinema (Zee Turner) Rs 25 – Four channels*
Total Financial Impact on operators – Rs 70.50
*These four channels are the movie channels being put on the cable network by Dish TV from its DTH platform.
What can cause a wee bit worry for the broadcasters is the fact that the Siti Cable franchisees have requested for some more time to “explore the ground situation and intention of subscribers” to avail these (new) channels.
It has also been pointed out that the pricing structure of the new channels has not been properly communicated to the consumer as also the financial impact on the monthly outgo.
Despite several initiatives of the sector regulator the cable ops also stated that there is no clarity about the distribution margin available to the distribution chain and emphasized the issue needs to be sorted out with respective broadcasters by ascertaining the MRP (maximum retail price) of a pay channel.
The issue of service tax and the draft interconnection regulations too were discussed at yesterday’s meeting.
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.
