SABe TV and Turner Broadcasting Systems have parted ways. The existing distribution agreement between them has been called off. SABe TV had given Turner a ‘non-performance’ notice few days ago.
Turner which distributes its own channels – CNN, HBO and Cartoon Network – had contracted to distribute SABe TV from July last year.
SABe TV had claimed that Turner Broadcasting had managed to install only 1,200 decoders with Indian cable networks in over one year charging a hefty fee of Rs 15 lakh per month.
The Turner’s response to the allegation was that SABe TV had not paid distribution charges for the last six months. While parting ways, the two sides are attempting to balance the financial claims against one another and settle the matter amicably.
While Turner is claiming unpaid distribution fees for six months, SABe TV says Turner owes it Rs 90 lakh for the sale of decoders. These were initially priced at Rs 13,000 per unit, but were later sold to cable networks at a subsidised rate of Rs 7,500 each.