Tata Play, the DTH operator, starts to drop off Sony Pictures Networks India (SPNI) channels from its subscriber packs, reviving a standoff with the broadcaster similar to last year’s, a report by ET states. It is amidst the growing demand of SPNI for a 10–15 percent increase in annual subscription fees from Tata Play. While Tata Play is resisting it, owing to customer churn and stagnant average revenue per user 
(ARPU).

The ongoing challenges of the sector, including stagnant customer growth and increasing competition from other mediums like OTT, IPTV, and others, are contributing significantly to the deepening of the crisis. It is increasing pressure on the revenues of broadcasters and distributors. Just a few weeks back, Airtel called off its ongoing discussions with Tata Play to merge both giants. 

Part of the routine

Some sources have told ET that Tata Play is reducing subscription pack prices by ₹15–20 for affected customers. Typically, broadcasters and distribution platforms renew content deals annually in April. Tata Play says that the move is part of a routine exercise to optimize packs based on user behavior. The company noted that customers can choose to reinstate the dropped channels if they wish.

Downgrading Packs 

“Pack downgrading, along with a corresponding drop in price, is an ongoing process at Tata Play, where certain channels are dropped for subscribers displaying frequent deactivation. These subscribers have the option of giving a missed call and reinstating the dropped channel instantly,” a Tata Play spokesperson said.

Tactics amid Mutual Dependency 

Industry experts claim that distribution platforms often resort to tactics such as dropping channels from subscription packages during negotiations. “Ultimately, both sides are dependent on each other for survival, so a resolution is inevitable,” he added.

Interestingly, this isn't the first time that such a thing has been reported. In August of the previous year, Tata Play undertook a similar action, attributing the removal of Sony channels to reduced viewership of Sony Entertainment Television (SET), SPNI’s flagship Hindi GEC.