Top Story

e4m_logo.png

Home >> International >> Article

STAR offers to cut subscription rates, expects quid pro quo from MSOs

06-November-2001
Font Size   16
STAR offers to cut subscription rates, expects quid pro quo from MSOs

STAR has started talking with some of the big multi-system operators (MSO) proposing to cut subscription rates to 50 per cent for its eight-channel bouquet if the cable networks, as a quid pro quo, report subscription revenue closer to the real connectivity they posses.

According to broadcasters cable networks are reporting no more than 20-25 per cent of their actual consumer base. If STAR manages to reach a deal with the cable networks, it is likely to be replicated by other channels.

A lower overall cable rate is expected to translate into better collections and prompt payment by consumers to cable networks and franchisees. Due to repeated hikes over the last two years in the cable bills, consumers are increasingly defaulting on their monthly payment.

According to industry sources, payment by cable networks based on their actual consumer base will also enhance their valuation with proof of payments serving s a better index of their true asset base of consumers.

The latest STAR strategy of lower-rates-higher-subscription collections is backed by industry projections of a fairly flat growth in advertising revenues but a robust increase in subscription number.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

In terms of affiliates, India ranks on the top. Spurred by the fast growth of mobile users and hence internet users, there are millions of websites, apps, WAP-sites and blogs using affiliate marketing...

Insecurity in the workplace due to the idea of AI encroaching on your job, or being sidelined at work because of your small town background? Sandeep Goyal has the right answers to help you deal with w...

As National Sales Head at News18.com, Ashish aims to bring on board a maximum number of advertising partners and consolidate the network’s position as a leader in the space.