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India Pakistan match (Morne de Klerk/Getty Images)
Sports Broadcasters are expected to lose 10 to 15 per cent of their subscription revenue If the Ministry of Information and Broadcasting (MIB) decides to amend the Sports Act 2007. This act will allow direct to home (DTH) and cable TV operators to broadcast nationally important sporting events, reports Television Post.
In an order passed by the Supreme Court dated 22 August 2017, it barred the telecast of DD National on private DTH and cable platforms while it airs a sporting event of national significance.
If the government gets its way, DTH and cable TV users would soon be able to watch India’s sports matches on DD National. This though has upset private sports broadcasters.
As per Media Partners Asia’s senior analyst Srivathsan AR, Star India, which has the rights for India-based cricket the next five years, will find it tough to gain additional value from DTH and cable operators during contract renewals.”
He estimated that there would be a 10-15 per cent negative impact on the quantum of distribution revenues the broadcaster would have made.
He also expects the value of rights of sports other than cricket to moderate if private sports broadcasters are forced to share their feeds with DD even on private distribution platforms.
As per the report, some questioned the government’s plans as DD Sports was not hitting off despite its broad reach. Some state that the government should rethink its strategy as some amount of content exclusivity is required for sports broadcasting to be financially viable.
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