RIL's acquisition of Hathway & Den to hit broadcasters, DTHs: India Ratings

Reliance Industries' acquisition of majority stakes in multiple system operators (MSOs) Hathway Cable & Datacom and DEN Networks augurs well for all the three firms, but will have a negative impact on broadcasters and direct-to-home (DTH) players, according to India Ratings. In a move aimed at becoming the largest player in the broadband as well as the cable TV and DTH market, Reliance Industries (RIL) earlier this month said it will buy 66 per cent stake in Den Networks for Rs 2,290 crore and 51.3 per cent in Hathway Cable for Rs 2,940 crore. India Ratings (Ind-Ra) said this consolidation in the MSO space is negative for broadcasters as their bargaining power to command higher subscription revenue may be impacted. It also said that possibility of Reliance Jio (RJio) to offer bundled plan, which will include both the broadband and pay cable TV markets, would negatively impact DTH players. The acquisition enables RJio to gain a significant foothold across western, ...

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