Cable Operators’ Welfare Federation (COWF) India has replied to Indian Broadcasting Federation (IBF) on the New Tariff Order (NTO – 2) & Network Capacity Fee (NCF). COWF has said that they do not agree with Indian Broadcasting Federation (IBF)’s comment on the NCF matter.
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COWF has stated that Broadcasters are getting profit from the different sources i.e. national & international advertising, subscription, digital media advertising from their own App, content syndication, OTT revenues from Telcos where as Local Cable Operators earn revenue only from subscription. So, Broadcasters should not discriminate LCOs by blaming in every aspects.
There is cost of distribution for the cable networks also, which is a combination of MSO who does the wholesale business and the LCO costs for the retail part of the business. Now business needs to recover these costs plus much more if they have to stay profitable. There are Set Top Box subsidies to be recovered, besides the need to plan and keep investing in network upgradation due to frequent technology changes.
The association also written in its statement that why is it that only Distribution Platform Operators (DPOs) have to reduce multiple TV NCFs to 40% and not Broadcasters ? Their explanation of waiving 60% of NCF defies all logic and no calculations are provided for the same.
Subscription Income remains the sole source of LCO earnings unlike the many options available to both Broadcasters & MSOs / DTH. Broadcasters should also give some space or advantages to these local cable operators to sustain in this industry.
Lastly, the association COWF has welcomed the IBF to sit & discuss on the Network Capacity Fee (NCF) matter on mutual basis to secure the revenue of cable tv operators.