Monday, February 22, 2016

Sun TV Network & OTT Play

Sun owns perpetual rights for Television, digital and others platforms (in-flight entertainment) for most of its content. It has signed content deals with a few OTT players which include YuppTV and HOOQ among others. The management indicated that it usually enters into a minimum guarantee fixed fee contract
for six to12 months following which it moves to per subscriber basis. The management indicated that talks are underway for content contracts with Reliance Jio


Sun management indicated that negotiations with media agencies and advertisers are underway and ad revenue gains pertaining to improved viewership share under BARC will start from 1QFY17. We believe a part of the upside from potential increase in yields in Tamil Nadu will be offset by weak ratings in other markets.

Sun management indicated that it has signed content contracts with a few MSOs in phase III markets of Karnataka and Kerala. The benefits will start from March 2016 quarter even though modest. That said, the pace of digitization in phase III is slow, given temporary court stays in most states.

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