The Economic Times - Mumbai, 12/18/2018 Cropped page Page: 5

I | TUESDAY | 18 DECEMBER 2018 | WWW.ECONOMICTIMES.COM

Brands & Companies  5

Freedom at Prime Time, but at What Price?

Select and pay only for TV channels you Most networks unveil new à la carte MRP for Back-of-the-envelope calculations show
want to watch under the new regime channels, come up with fresh bouquets cable/DTH bills to shoot up for most users
ry. A by ET shows that at the announ- per month, will be a challenge.”
are Gaurav.Laghate ced bouquet prices, for the basic, As per TRAI, four metros fall un-
-seat @timesgroup.com non-premium channels, a consu-
mer in the Hindi heartland (no HD
Shell Out a Big Buck Broadcasters’ Basic Bouquets & pricing
Star India (13 channels) `49
der phase I, while cities with po-
pulation of over 1 million form
Mumbai: Indian TV consumers or regional channels), will end up CABLE/DTH COST TO CUSTOMER phase II markets. Phase III are
may have to shell out more money paying `430-440 per month under Current bill (including premium & regional channels): Zee Entertainment (24 channels) `45 those cities with population of

ys, for their monthly cable or DTH (di-

rect-to-home) bill starting Janua-
the new tariffs. Currently, in pha-
se III and IV towns, consumers pay
`200-250 (phase III/IV), `350-400 (Phase I/II)

New tariff regime

ry 1, after the new tariff order for
g the broadcast sector comes into ef-
fect as per the directions of Trai.
As per the new tariff regime set
by the regulator, consumers now
e have the option to select and pay
only for TV channels they want to
watch at the maximum retail pri-
ce (MRP) set by the respective
broadcasters.
In the last few days, all the TV
t has networks have come out with the
profi- à la carte MRP of their channels.
roce- Major broadcasters have also co-
hisee me up with their own bouquets
of its that attach non-performing or
e co- non-popular channels with the
driver or flagship channels.
ority Back of the envelope calculation
stau-
ng on
a monthly bill of `200-250, and in
large cities, a cable/ DTH bill for
250+ channels – which includes
sports and regional channels –
costs between to `350-400.
As per the new rate structure, a
consumer will have to pay up to
`130 (plus taxes) for first set of 100
channels, which will be mostly
free-to-air (FTA) channels.
This doesn’t include any popu-
lar channels from top TV net-
works like Star India, Zee Enter-
tainment Enterprises, Sony Pic-
tures Networks India etc.
If a consumer decides to buy ba-
sic packages from top broadcas-
ters, which include popular gen-
res like general entertainment,
Hindi basic package
`430-440 per month
Break-up of basic pack
`130 plus taxes for first 100
channels + `184 (pay channels)
+ `100 network capacity fee
Premium packs (including
sports & niche; non-HD) `575-600 per month
movies, kids, music, news and in-
fotainment, she will have to pay
an additional `184 for 95 pay chan-
nels. On top of that a network ca-
pacity fee of `100 (`
`25 per 20 chan-
nels) will be extra.
In short, in the new regime, a
Sony Pictures Networks (9 channels) `31
IndiaCast (20 channels) `25
Disney (7 channels) `10
Discovery Networks (8 channels) `8
Times Network (4 channels) `7
Turner (2 channels) `4.8
NDTV (4 channels) `3.5
TV Today Network (2 channels) `0.75
consumer will have to pay up to Vivekanand Subbaraman, ana-
`450 a month for the basic chan- lyst at Ambit Capital, said, “One
nels, without regional or sports, can expect Phase I/II subscribers
if he or she is opting for bouquets. to pay more but convincing price
If they go for a-la- carte, the bill sensitive Phase III/IV subscribers
will be over `800 as bouquets are to cough extra for TV services,
at a discount of 35-55%. who are currently paying `200-250
over 1 lakh, while below 1 lakh
towns are part of phase IV.
It is important to note that the
Telecom Regulatory Authority of
India’s (Trai) intention with the
new regulation was to make the
entire framework completely
transparent, provide choice to
consumers, and ensure a fair deal
amongst audience.
“We are less than 15 days away
from implementing the change
and still consumers are not aware
of this major change. Nobody
knows what will happen on Janu-
ary 1. If there is a blackout given
that cable and DTH operators are
yet to get consumers’ choice of
channels, brace for consumer
anarchy this new year,” said a top
executive of a broadcast network.

Court Admits Wadia’s Defamation UK’s Retail Trouble HURTING HOLIDAY SPIRIT
ction
more
con-
GST
that
order
l An-
utho-
tiga-
Case Against Ratan Tata, Others Spreads Online, Too
st the ems strange that the board levelled
irec- such accusations against Wadia to de-
Wadia, a board member
dings fame him and malign his reputation,” Asos plunges 40%, drags down other online retailers
peti-
of some Tata cos then, one of them said. “Wadia had challeng-
yed,” ed the dependence of the board and was like Boohoo, Zalando and store operators like Next
Res-
was accused of acting in not in any way Cyrus Mistry supporter.
His point was that as a board, one sho-
Bloomberg
order
mat-
concert with Cyrus Mistry uld discuss the case raised by the prin-
cipal shareholder,” the person said. A Big Blow
Wadia was an independent director Europe’s retail apocalypse is spreading from
umer Our Bureau on Tata Steel for over 38 years after be- brick-and-mortar stores to e-commerce as Asos Asos competes
r not ing appointed by JRD Tata. plunged the most in four-and-a-half years after with the likes
of Amazon in
on to Mumbai: A local court in Mumbai has Wadia had appeared before the chief warning that Christmas shopping got off to a
the UK
that admitted industrialist Nusli Wadia’s metropolitan magistrate earlier this disastrous start.
t was criminal defamation case against Ra- month to substantiate his case. The gloomy update from a UK online retailer Its performance shows that
ility. tan Tata and 10 board members of Tata The criminal process cited that Wadia that competes with Amazon and has furnished
FILE PHOTO

retail weakness is widespread in

tle to Sons and has “issued process”, thereby
urate kick-starting the trial for charges of
uced criminal defamation.
The accused will have to appear before
the additional chief metropolitan ma-
gistrate, 38th Court, Ballard Pier, and
seek formal bail from the court at its
next hearing fixed for March 25, 2019.
ost The accused, including Ishaat Hussa-
in, N A Soonawala, Nitin Nohria and
who
Vijay Singh, can also appeal against the
ped
criminal process in a higher forum.
The case pertains to the time when Cy-
rus Mistry, former chairman of Tata
Sons, was sacked from the holding com-
pany and from boards of several flagship
group companies. There were accusa-
tions that Wadia, then a board member at
Tata Chemicals, Tata Steel and Tata Mo-
tors, was acting in concert with Mistry
against the interests of the group.
Wadia, in his defamation suit, also al-
leged that the senior Tata executives
named in his suit had accused Wadia of
conducting himself as an “interested
party” when he served as an indepen-
dent director on the board, people fami-
liar with the development said.
“We have learned that a criminal pro-
cess has been issued in Nusli Wadia’s
defamation case against Ratan Tata
0% and others,” Zulfiquar Memon, mana-
avel,
ging partner at MZM Legal, the law
firm representing the Tata Group, said.
“We are yet to receive the copy of the or-
der. Once we are in receipt of a copy,
we’ll take further steps.”
Tata Sons said all due processes were
followed in relation to the removal of Wa-
dia as independent director of Tata com-
panies. “Tata Sons had, in exercise of its
statutory rights, validly issued a ‘special
notice’ seeking his removal. While Wa-
dia has alleged that the contents of the
special notice were defamatory, the mat-
ter is currently sub-judice and Tata Sons
strongly denies such allegations,” the
company said in a statement.
A highly placed official close to Tata
Sons said top lawyers are looking into
the matter and will seek to quash it
since the order is not based on sound
principles of law.
Senior executives close to Wadia said
the septuagenarian industrialist will
not relent on the defamation case and
take it even to the Supreme Court.
“According to the Companies Act, one
is not required to give a reason to remo-
ve a member on board. Therefore, it se-
had communicated to Tata Sons direc- fashions to the likes of Meghan Markle shows the run-up to the holidays
tors to withdraw the “false and defama- that retail weakness is widespread in the run-up
tory” allegations against him. to the holidays. Last week, Sports Direct Inter- Asos performance led to
£1.4 billion being wiped
While the Tata Group confirmed that national chief executive officer Mike Ashley sa-
off the market value
they had indeed sent special notices to id sales were unbelievably bad in November,
shareholders which were widely pub- sending the shares off a cliff. The retailer blamed
lished in electronic media, print media Asos fell as much as 43% on Monday in London, high level of discounting
and on the stock exchanges website, wiping more than £1.4 billion ($1.8 billion) off the amid economic
they, however, did not clarify on what market value. The news dragged down other on- uncertainty and low
basis they made those allegations aga- line retailers like Boohoo Group and Zalando, as consumer confidence
inst Wadia. This was his grouse. well as store operators like Marks & Spencer
The allegations made against Wadia Group and Next.
included, among other issues, that he
had acted in concert with Mistry, gone
This goes against the script, said Stephen Lie-
nert, a credit analyst at Jefferies. It was suppo- 15% Cofull-year
cut outlook for
growth
against the interests of the Tata Group, sed to be brick-and-mortar stores that’s dying Asos
and that he had conducted himself as and online is the future, but that headline gets operates
an interested party in a manner desig- ripped up today. in more
ned to cause harm to the Tata Group, de- Asos cut its full-year sales-
spite purportedly being an indepen- growth guidance on a signifi- £2.1 than 230
countries
dent director of the boards of certain
Tata companies, people familiar with
Asos cut its
outlook for
cant deterioration in Novem-
ber, blaming a high level of dis-
billion and
territories
plunge in Asos’
the matter said. full-year counting amid economic un- market value
Another serious charge levelled aga- growth to certainty and low consumer
inst Wadia was that he was not conduc- about 15%, confidence, which has been un-
ting himself independently and had be- from a dermined in the UK by the con-
en galvanising the independent direc- previous tinuing Brexit saga. The news
tors and acting prejudicially and that
his actions would put Tata Steel and its
range of 20%
to 25%
shows that retailers can’t rely
on online operations to make 37%
future in “grave jeopardy” and impact up for a decline in stores this ye- sales contributed
by the domestic
the “overall morale” of the workers, ar. If December doesn’t improve, the New Year
market
employees, and management and that may bring more profit warnings, or worse, to
he had “no bona fide”, they said. the sector.
Retailers such as Debenhams and Marks & Spen-
cer, which are in the midst of turnaround plans, About half of its The

‘Oyo Good for Market, Issues with

ion, IT
may be particularly vulnerable. The UK’s shop- business is own- company
Mobile’s ping districts have been decimated by a series of brand merchandise also sells
are of collapses, including the insolvency of depart- or exclusive goods
nline ment-store chain House of Fraser, which collaborations with from the
actions
Hotels Must be Resolved Directly’ Ashley rescued earlier this year.
Investors in retail debt are also
feeling the pain. Debenhams’
third-party labels likes of
Hugo Boss,
Adidas
and Calvin
0% id: “India has a shortage of 2 lakh rooms will be rolled out online by the end of £200 million of bonds due July
Anumeha.Chaturvedi in the mid-market segment and if Oyo is December 2018,” it said in a statement 2021 have plummeted 35 pen- Klein
@timesgroup.com bringing the inventory of mid-market on December 7. The ministry said it wo- ce since the start of the ye-
ndia hotels into the organised segment thro- uld classify fully operational rooms of ar to 64 pence, the lowest
gged New Delhi: Tourism minister KJ Alp- ugh some upgrade, it is good news.” homestay facilities in states and union since the notes were sold
hind hons said Oyo bringing mid-market ro- The minister’s comments come 10 da- territories where the local authorities in 2014, according to data
eloped oms into the organised segment was go- ys after the tourism ministry came out do not have their own scheme for their compiled by Bloomberg.
rkets od news for the tourism sector, and that with a set of voluntary guidelines for approval, classification, accreditation Asos cut its outlook for
ch as hotel bodies and the aggregator should online travel aggregators as ‘Incredible India’ bed-and-breakfast full-year growth to abo-
orea resolve issues such as room rates di- (OTAs) and bed-and-break- and homestay establishments. ut 15%, from a previous
hich rectly between them. fast establishments, inclu- “The purpose of these guidelines is to range of 20% to 25%.
nessed Many hoteliers and their associa- ding homestay operators. bring in some framework rather than It’s a sharp turnabout
arly
tions have been raising concerns abo- The guidelines, the ministry said, had leave these entities completely without for a company that had
% of all
G sales ut deep discounting offered by online been devised to ensure that there were control. All this has happened after a grown rapidly, its mar-
nline aggregators like MakeMyTrip and adequate safeguards against deficien- lot of consultation,” said a tourism mi- ket value at one point ri- Boohoo
Oyo and the commissions they charge, cy of service, alternate arrangements nistry official. On the dispute between valing Marks & Spencer dropped Zalando
claiming that such practices were hur- if needed and punitive deterrence. hoteliers and aggregators, the official before plunging to £2.1
12/25/2018 9:29:42 AM
plunged as
ting their businesses.
Speaking to ET, Alphons said that was
“This is a voluntary scheme open to
bona fide online travel aggregators to
said: “Resolution for issues like deep
discounting does not lie with the tou-
billion on Monday.
The warning dragged down
20%
before
much as