TDSAT restrains Sony from disconnecting signals to Tata Play; directs interim payment of Rs 40 crore

Time of India

27-05-2025

Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed broadcaster Sony Pictures Networks India (SPNI), legally known as Culver Max Entertainment, not to proceed with its disconnection notice issued to direct-to-home (DTH) operator Tata Play TDSAT also ordered Tata Play to pay Rs 40 crore to SPNI within two weeks as a part payment against the broadcaster's claimed dues of Rs 128 crore. The amount, the tribunal said, would be adjusted against the final liability at the time of the final hearing.While admitting Tata Play's petition challenging the disconnection notice dated May 21, a TDSAT bench comprising Chairperson Justice D.N. Patel and Member Subodh Kumar Gupta listed the matter for directions on July 23.'We hereby stay the operation, implementation and execution of the notice issued by the respondent (SPNI) dated 21.5.2025,' the tribunal said in its order, adding that the stay will remain in effect until the next hearing.The tribunal also urged both parties to reconcile their disputes, including account-level reconciliations.SPNI had been running scrolls advising viewers to switch to other DTH or cable TV operators to access its channels. Tata Play subsequently decided to drop Sony channels from its packs.The dispute stems from commercial disagreements over the renewal of the annual subscription deal. While SPNI is seeking a fee hike, Tata Play has pushed back, citing declining viewership of Sony channels.Representing Tata Play, senior counsels Dr. Abhishek Manu Singhvi and Meet Malhotra argued that the broadcaster's demand was unjustified. They said Tata Play had already paid around Rs 4,000 crore over the past decade, including Rs 700 crore annually, and had made substantial payments since SPNI's initial communication in March 2025 seeking dues of Rs 300 crore.They also claimed the Rs 128 crore demanded was neither due nor payable on the notice date, and accused SPNI of not properly considering set-off amounts. The counsels further alleged that SPNI violated Regulations 17 and 35 of the 2017 Broadcasting and Cable Services Consumer Protection regulations Acknowledging the petition and supporting documents, the tribunal noted a prima facie case in Tata Play's favour, adding that the balance of convenience also lay with the DTH operator. It warned that failing to grant the stay could cause irreparable harm to Tata Play.Appearing for SPNI, senior counsel Abhishek Malhotra submitted that the scrolls would be withdrawn if Tata Play made some payment and the accounts were reconciled. Based on these assurances, the tribunal refrained from issuing a detailed order at this stage.Tata Play, jointly owned by Tata Sons (70%) and Walt Disney (30%), reported a consolidated net loss of Rs 510 crore for FY25, up 44% from Rs 354 crore the previous year. Revenue fell 5.46% to Rs 4,082 crore due to subscriber losses driven by increased competition from DD Free Dish and the growing popularity of OTT platforms.