Hathway Cable & Datacom Ltd reply to clarification sought by the exchange

• Security Code: 533162
• Company: HATHWAY

The Exchange had sought clarification from Hathway Cable & Datacom Ltd with respect to media news appearing on ET NOW @ 9:27 am on August 19, 2015 titled "Sony-linked company snaps 15 channels signals to 38 Hathway cable areas on non-payment of dues"

Hathway Cable & Datacom Ltd replied stating "Please note that we are not aware as to the exact content of the ET NOW report but would like to clarify that the Subscription Agreement with MSM Media Distribution Private Limited for DAS Phase ? II areas had expired on 31.3.2015 and they have been demanding unreasonable hike from us for renewal of the agreement which was very unreasonable, unjustified. Since the demand imposed by MSM Media Distribution Private Limited was unreasonable and unfair the talks between the parties were not heading towards any resolution .Further we would like to submit that the content of the MSM channels were unappealing and there was a continued decline and in consistency in their rating. Dripping ratings and average content cannot be a base for a broadcaster to take distribution platforms for a ride by demanding hefty growth year on year. In fact, it requires major correction in the subscription fees that the broadcaster charges. The concern with Sony Entertainment Television, the flagship channel of Multi Screen Media (MSM), has been witnessed over the last year wherein their content lacks appeal and demand as compared to other leading networks and does not deserve growth, which was raised by us to the broadcaster. All the other channels in the MSM bouquet are also irrelevant and don't offer any compelling content. Hence it was decided by the Company not to renew the subscription agreement for DAS Phase II areas.

Thereafter MSM Media Distribution Private Limited issued disconnection notices on 16-07-2015 for DAS Phase II cities against Hathway Cable and Datacom Limited and after the expiry of 21 days notice period, the signals were disconnected by MSM Media Distribution Private Limited on 06.08.2015."