Sony and Tata Play Dispute Over Channel Removal, Legal Action Considered
News Mania Desk/Agnibeena Ghosh/2nd August 2024
A significant dispute has arisen between Sony Pictures Networks India and Tata Play, a leading direct-to-home (DTH) operator, concerning the removal of Sony channels from Tata Play’s consumer packs. According to a report by The Economic Times, Tata Play justifies this decision by citing the declining popularity of Sony channels and the potential cost savings for consumers. On the other hand, Sony argues that the move is retaliatory, following their request to audit Tata Play’s subscriber management system (SMS). The broadcaster is contemplating legal action based on an existing contract between the two entities.
This controversy mirrors a previous clash between Sony and Tata Play over the removal of the SonyLIV app from Tata Play’s Binge OTT service due to disagreements over payouts. These recurring conflicts highlight the ongoing tensions in the television industry as it faces increasing competition from digital platforms.
Sony has accused Tata Play of retaliatory behavior after the broadcaster requested an audit of Tata Play’s SMS due to apparent discrepancies. Reports indicate that Sony is exploring legal options, arguing that the two companies renewed their contract in the first quarter of this year. Sony also criticized Tata Play for making the decision without prior notice or consideration for subscriber preferences, which has added fuel to the fire.
Tata Play’s CEO, Harit Nagpal, defended the removal of Sony channels, asserting that the action complies with regulations and will save customers between Rs 50-60. He emphasized that Tata Play’s SMS is regularly audited by the Telecom Regulatory Authority of India (TRAI) auditors and is open for broadcaster audits. Nagpal also noted that Sony channels could still be subscribed to individually, highlighting that despite the removal, only 18,000 out of one million users requested to add Sony channels back.
The broader implications of this dispute point to significant challenges in the industry. With increased competition from streaming services and stagnation in the pay-TV business, market watchers foresee more conflicts between broadcasters and distributors as the overall subscription revenue pool shrinks. Major broadcasters like Viacom18 and Disney Star are demanding higher payouts due to their substantial investments in sports, forcing distributors to reallocate content spending.
Sony’s potential legal action adds another layer of complexity to this ongoing battle. The broadcaster claims that Tata Play’s decision to remove their channels is a breach of contract, particularly since the contract was renewed recently. This has led to accusations that Tata Play’s actions are a form of retaliation for Sony’s audit request. The outcome of any potential legal proceedings could set a precedent for future disputes in the industry, influencing how broadcasters and distributors negotiate and manage their contracts.
The recurring conflicts between Sony and Tata Play underscore the shifting dynamics of the television industry. As digital platforms continue to grow in popularity, traditional TV operators and broadcasters are under pressure to adapt. Cost-saving measures, audit requests, and contractual disputes are likely to become more common as companies strive to stay competitive.
In conclusion, the dispute between Sony and Tata Play over the removal of channels highlights broader issues in the television industry, including competition from streaming services and the need for effective contract management. With Sony considering legal action, the outcome of this dispute could have far-reaching implications for broadcasters and distributors alike. As the industry evolves, both parties will need to navigate these challenges carefully to ensure a sustainable and mutually beneficial relationship.
