Sun TV Network Ltd. is in talks with Tamil Nadu state-owned Arasu Cable TV Corporation to renew its subscription deal on fresh commercial terms.
Sun TV’s one-year deal with Arasu Cable, inked mid-2012, has expired.
Arasu Cable, which has a dominant presence in Tamil Nadu, is continuing to pay Sun TV on older rates. Sun TV Network gets paid Rs. 2.5 crore ( Rs. 25 million) a month for supplying its channels to Arasu.
Sun TV is asking for an increase in payout but has so far not been able to reach an agreement with Arasu.
“There is no change in Sun TV’s deal with Arasu yet. Negotiations continue to happen. Sun TV is booking at older rates,” an industry source said.
Sun TV will benefit from digitisation and expects its subscription revenue to jump by 27 per cent this fiscal. In the fiscal first-quarter, Sun TV had guided for a 25 per cent rise in subscription income over the earlier year.
Sun TV Network expects the benefits of Phase II digitisation to flow through by March 2014 as revenue from Hyderabad and Visakhapatnam have not yet come in. Digitisation has not been implemented in Tamil Nadu and higher subscription revenue from Chennai and Coimbatore are awaited.