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Business Standard
6 days ago
- Business
- Business Standard
DTH firms under pressure as govt demands Rs 16,000 cr as licence fees
The Information and Broadcasting Ministry has issued notices demanding Rs 16,000 crore from four private direct-to-home (DTH) companies for unpaid licence fees — a move that is likely to hurt the struggling sector, The Economic Times reported on Friday. The notices demanded principal dues and accumulated interest from Bharti Telemedia (parent of Airtel Digital TV), Tata Play (formerly Tata Sky), Dish TV and Sun Direct. Industry representatives have told the Ministry the demand is not enforceable as the matter is before High Courts, the Telecom Disputes Settlement and Appellate Tribunal and the Supreme Court. Tax demand exceeds FY24 revenue The ministry's demand exceeds the four companies' combined FY24 revenue of Rs 10,230 crore, which is a 5 per cent decline from Rs 10,837 crore they earned in FY23. The sector lost eight million subscribers between FY21 and FY24. As of December 2024, the active pay DTH subscriber base was reported at 58.22 million. Final figures subject to changes, says MIB In its communications to the companies, the ministry said that the final figures are provisional and subject to reconciliation based on the outcomes of ongoing audits by the Comptroller and Auditor General and pending court verdicts. Dish TV, in its Q4 FY25 regulatory filing, said it had received a directive from the ministry on April 22 to pay Rs 6,735 crore in licence fees, including interest for the period from the issuance of its DTH licence through FY24. The company has formally disputed the demand. As of FY24, Tata Play has received a cumulative demand of Rs 3,628 crore, including Rs 1,401.66 crore in interest. Meanwhile, Sun Direct was issued a demand of Rs 1,051.84 crore, excluding interest, as of March 2024. SC upholds states' right to levy entertainment tax Compounding the industry's financial woes, the Supreme Court on May 23 upheld the constitutional validity of entertainment taxes imposed by state governments on cable and DTH television services. The court ruled that states have the legislative right to tax the entertainment aspect of these services, even if the broadcasting function is already covered under the Centre's service tax regime. Appeals by DTH operators rejected The Supreme Court dismissed appeals by leading DTH providers including Tata Sky, Dish TV, and Sun Direct, who had contested various state entertainment tax laws. The companies argued that the taxes were unconstitutional due to the Centre's existing service tax on broadcasting. The court, however, upheld the states' authority to impose such levies.
Time of India
6 days ago
- Business
- Time of India
DTH cos asked to pay ₹16,000 crore licence fee dues
MUMBAI: The ministry of Information and Broadcasting has issued demand notices totalling ₹16,000 crore to the country's four private direct to home (DTH) operators over outstanding licence fees, industry sources told ET, potentially compounding problems for an industry battling dwindling revenues and subscriber losses to OTT platforms and DD Free demands cover both the principal amount and accrued interest on the dues, said the officials cited above. They said that the operators have communicated to the government that the notices cannot be enforced, as the matter is sub judice in various High Courts, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), and the Supreme Court. Dish TV CEO Manoj Dobhal acknowledged the pressures facing the sector. "The DTH industry is navigating a difficult phase, with factors such as subscriber churn driven by competition from OTT platforms and DD Free Dish, along with taxation and regulatory issues,' Dobhal said. 'Given these challenges, we would have hoped for a more supportive approach from the authorities." To be sure, the licence fee demand is more than the combined revenue of the four private DTH operators, which stood at ₹10,230 crore in FY24, down 5% from ₹10,837 crore the previous year, as per regulatory filings. In its correspondence, the ministry said the figures are subject to reconciliation based on the outcome of audits by the Comptroller and Auditor General (CAG), as well as pending court decisions. In its Q4 FY25 regulatory filing, Dish TV disclosed that it had received a communication from the ministry dated 22 April 2025, directing the company to pay ₹6,735 crore toward licence fees, including interest, covering the period from the grant of its DTH licence up to FY24. The company added that it has disputed the demand in its response. As of FY24, Tata Play has received a consolidated demand of ₹3,628 crore, including ₹1,401.66 crore in interest. Sun Direct has received a demand of ₹1,051.84 crore (excluding interest) as of March 2024. As of March 2025, Dish TV had made a provision of ₹4,612 crore towards licence fee dues. Tata Play had provisioned approximately ₹2,002 crore and recognised a further ₹2,280 crore as a contingent liability. Bharti Airtel had made provisions of about ₹3,426 crore as of 31 March 2024. Bharti Telemedia, Tata Play and Sun Direct declined to comment on the matter. A senior DTH executive added that the ministry has raised similar demands in the past even when legal disputes remain unresolved. 'DTH operators have repeatedly urged the ministry to exclude pass-through costs, such as content expenses, from the licence fee calculations and to address the issue of double taxation. However, these concerns are yet to be addressed,' the executive said. The DTH industry lost 8 million subscribers between FY21 and FY24. The active pay DTH subscriber base stood at 58.22 million, as of December 2024. The Telecom Regulatory Authority of India (TRAI) has, on two occasions, recommended phasing out the DTH licence fee by the end of FY27. Since 2020, TRAI has issued 17 recommendations aimed at reforming the broadcasting sector. The ministry of information and broadcasting has historically calculated the licence fee as 10% of gross revenue, without deductions. However, in 2020, it amended the DTH guidelines to set the licence fee at 8% of adjusted gross revenue (AGR).
Time of India
28-05-2025
- Entertainment
- Time of India
TDSAT restrains Sony from disconnecting signals to Tata Play; directs interim payment of ₹40 crore
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 also ordered Tata Play to pay ₹40 crore to SPNI within two weeks as a part payment against the broadcaster's claimed dues of ₹128 crore. The amount, the tribunal said, would be adjusted against the final liability at the time of the final 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 had earlier decided to drop Sony channels from its packs. Tata Play and SPNI have been at loggerheads over commercial disagreements regarding the renewal of their 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 ₹4,000 crore over the past decade, including ₹700 crore annually, and had made substantial payments since SPNI's initial communication in March 2025 seeking dues of ₹300 crore. They also claimed the ₹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 ₹510 crore for FY25, up 44% from ₹354 crore the previous year. Revenue fell 5.46% to ₹4,082 crore due to subscriber losses driven by increased competition from DD Free Dish and the growing popularity of OTT platforms.
Time of India
27-05-2025
- Business
- Time of India
TDSAT restrains Sony from disconnecting signals to Tata Play; directs interim payment of Rs 40 crore
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 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 tribunal also urged both parties to reconcile their disputes, including account-level 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 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 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 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 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 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.
Time of India
27-05-2025
- Business
- Time of India
TDSAT rules in favour of Tata Play, asks to pay Rs 40 crore instead of Rs 128 crore to Sony
The Telecom Disputes Settlement and Appellate Tribunal on Tuesday directed Tata Play to pay a lower sum of Rs 40 crore to Sony instead of Rs 128 crore within the coming two weeks, amid an ongoing broadcasting dispute between the two major players. The dispute arose after Sony issued a demand notice on May 21, 2025, claiming that Tata Play owed it over Rs 128 crore. After hearing arguments from both sides, the tribunal stayed the enforcement of Sony's massive demand notice until the next hearing, scheduled for July 23, 2025. Tata Play contested the demand, arguing that it had already made substantial payments and that the amount claimed was neither due nor accurate. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses India (Prices May Surprise You) Container House | Search ads Search Now Undo However, the tribunal clarified that the Rs 40 crore payment is a temporary step and does not mean Tata Play admits it owes more money. Sony accepting this money also doesn't mean they agree on the amount. Additionally, the tribunal also ordered Sony to immediately stop broadcasting static images and scrolls on television channels that warned viewers about the potential unavailability of Sony channels on the Tata Play platform. These messages had reportedly caused concern among subscribers. Live Events The case stems from a financial dispute over outstanding dues, with Tata Play arguing that it had already made substantial payments to Sony and that the remaining amount, if any, was being incorrectly calculated. Tata Play cited past payments of over Rs 4,000 crore across 10 years and annual payments of approximately Rs 700 crore. As such, the tribunal took note of these arguments and stated that there was a prima facie case in favour of Tata Play, justifying interim relief. Moreover, the court encouraged both parties to reconcile their differences, including pending account settlements, ahead of the next hearing.
