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Why are Indian broadcasters owed payments?
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS II - Governance
Context:
Indian broadcasters have complained of mounting dues from distributors in Nepal and Bangladesh, The Hindu reported in August. Over ₹350 crore in dues from the two countries remain unpaid since 2023.
Read about:
Cable Television Networks (Regulation) Act of 1995
Broadcast Advisory Council
Key takeaways:
Do Indian channels broadcast in Nepal and Bangladesh?
- Indian entertainment channels, especially those in Hindi and Bengali, enjoy wide popularity in Nepal and Bangladesh. Listings from Nepal Telecom include networks like Zee, Star, Sony, and Viacom, while similar offerings are available via Bangladeshi distributors.
- Just like in India, some channels are included in basic packs and others are offered as add-ons. However, both countries receive a special “clean feed” version of these channels, free from India-specific advertisements for products not available there.
- To provide this, broadcasters incur additional costs to prepare a separate feed and then uplink it via licensed satellites or cable operators. Since these are cross-border deals, broadcasters generally charge in U.S. dollars.
- Broadcast rules in both Nepal and Bangladesh are strict, especially for foreign players. Bangladesh mandates the use of locally controlled satellites for foreign feeds — an expensive requirement.
- Nepal, on the other hand, suddenly enforced à-la-carte channel pricing in 2023, closely mirroring India’s New Tariff Order, but without prior notice, leaving broadcasters scrambling to comply.
Why are Indian broadcasters not being paid?
- Delayed payments are a recurring issue for Indian businesses in these markets. In Bangladesh, for example, Adani Power faced prolonged non-payment after the exit of former Prime Minister Sheikh Hasina. Similarly, Nepalese telecom firms had a standoff with Airtel in 2023 over payments for Internet services delivered through its terrestrial cables.
- After Ms. Hasina’s removal, Bangladesh’s strained economy redirected limited funds towards essential areas like healthcare and electricity dues, rather than media and entertainment. Even funds from recent World Bank loans were prioritised for these sectors.
- Another complication arises from foreign exchange approvals. Both governments require clearance from central banks or ministries for such payments, meaning even willing distributors cannot always transfer money on time.
- Currently, dues owed to Indian broadcasters exceed ₹350 crore, with Nepal responsible for about ₹100 crore and Bangladesh for the remainder. Political instability has added to the uncertainty, especially after Nepal’s Prime Minister K.P. Sharma Oli resigned in September following widespread protests, pushing the country into election mode
Can Indian broadcasters stop providing feeds?
- Broadcasters, unlike power or Internet providers, have little bargaining power. For instance, Nepal depends on Airtel for Internet connectivity and Adani Power for electricity — services that cannot be easily replaced.
- Indian TV channels, however, face the risk of being pirated if they cut clean feeds. Distributors in Nepal and Bangladesh could simply install Indian satellite receivers and illegally retransmit signals, something that has happened before.
- Broadcasters complain that local operators have even erased channel logos on pirated feeds and replaced them with their own branding.
- Because of such risks, Indian broadcasters find