HomeShop18 reduced carriage fee payout to cable TV ops in FY 13

Getting profit from digitisation of cable TV networks, HomeShop18 has reduced its carriage fee payout to cable TV operators in FY13 over the earlier-year period. 

The television shopping channel, which also runs an online marketplace, paid $5.6 million as carriage fees in FY13, down from $6.2 million in FY12. Even as HomeShop18 was settling down on cable TV networks, its carriage fees in FY11 amounted to $5.3 million. Though this was lower than its next two fiscal payouts, the channel’s distribution was not widespread. In FY11, digitisation had not arrived and there was bandwidth crunch on cable TV networks. 

Carriage as a percentage of revenue from operations stood at 27.4% in FY11 and 25.3% in FY12, before dropping to 13.7% in FY13. Homeshop18′s revenue from operations has grown from Rs 87.5 crore ($19.2 million) in FY11 to Rs 117.6 crore ($24.5 million) in FY12 and Rs 221.8 crore ($40.7 million) in FY13. 

For negotiating carriage agreement with various cable operators on its behalf, HomeShop18 used to utilise the services of Setpro18 Distribution, a Network18 affiliate company. Until June 2012, it paid a flat fee of Rs 50 lakh ($79,900) per year.
Source: http://cablequest.org/news/national-news/item/4562-homeshop18-reduced-carriage-fee-payout-to-cable-tv-ops-in-fy-13.html

Source: http://cablequest.org/news/national-news/item/4562-homeshop18-reduced-carriage-fee-payout-to-cable-tv-ops-in-fy-13.html