Broadcasters such as Sony, Zee, Viacom, Disney Star, Sun TV, among others, have expressed concerns over non-clearance of payment worth over Rs 500 crore by Tamil Nadu Arasu Cable TV (TACTV), owned by the state government. The dues pertain to subscription fees of television channels, which TACTV has not paid to several broadcasters for the last one year, people aware of the matter said.
Following the long spell of non-payment, the Indian Broadcasting and Digital Foundation (IBDF) in March also wrote to Palanivel Thiagarajan, IT and digital services minister in the Tamil Nadu government as well as TACTV MD A John Louis, for a fair and sustainable business environment.
“In light of the seriousness of this issue and its detrimental effects on the industry, we urgently request your esteemed intervention to facilitate the immediate clearance of subscription dues by TACTV. Timely resolution of this matter is crucial to restoring confidence and stability within the broadcasting ecosystem in Tamil Nadu,’ IBDF said in a letter dated March 13 to the minister.
A copy of the letter was seen by FE. Queries sent to IBDF and TACTV did not elicit any response till the press time.
IBDF has 56 member broadcasters representing nearly 450 news & non-news channels, comprising 90% of television viewership in the country.
People in the know said, the request for broadcasters have not been entertained by the Tamil Nadu state government so far for reasons that TACTV itself is undergoing financial crunch.
“Arasu Cable has a due of Rs 525 crore fee outstanding to television broadcasting companies…Tamil Nadu Government Cable company is in ICU. There is no oxygen and it is up to the contractors to supply electricity to it,” Thiagarajan was quoted as saying by Tamil newspaper Dinamalar in the edition dated June 29.
Asked why broadcasters are not cancelling the TV channel access to the Cable TV company, an executive working with a leading broadcaster said, there is a fear that the state government might throttle their overall business in the region.
“Disconnecting a state government machinery seems difficult at the moment. Further, disconnection might lead to copyright issues as last-mile operators will then start pirating the signals,” another executive at a broadcasting company said, on the condition of anonymity.
However, the broadcasters have the option to appeal for pending dues against the company in the telecom disputes settlement and appellate tribunal (TDSAT).
TACTV also remains non-compliant to the Central government advisory in 2022, asking Union ministries, state governments and union territory administrations not to enter into any broadcasting or distribution of broadcasting activities directly. The states and other authorities, who were involved in broadcasting and cable TV business were given time till December 31, 2023, for the transition.
The same was done with the aim to stop politicisation of broadcasting. According to officials, such content that will be broadcasted might promote the ruling party, push its ideology and influence the voters at the time of elections.
However, till now some of the state governments have not followed the advisory and in fact Tamil Nadu has challenged the same in the Madras High Court on pretext that the move is politically motivated at the Centre’s level, people in the know said.
The same clause has also been brought by the ministry of information and broadcasting (MIB) in the draft broadcasting bill. This will get legal backing only when the bill becomes an Act. Officials in the know said, MIB had a meeting with TACTV to understand the concerns but the matter is sub judice and will be dealt with accordingly.
Analysts said, the Central government’s slow approach towards removing state governments especially Tamil Nadu from broadcasting space could also involve a political angle as the BJP government would want to weigh all its moves that do not affect its vote share in the region.
As of March 2024, TACTV has an active subscriber base of around 1.57 million, according to data by Telecom Regulatory Authority of India.