Sony-Nimbus distribution deal stuck on pricing
MUMBAI/NEW DELHI: Talks between sports broadcaster Nimbus and Sony Entertainment Television (SET)’s One Alliance for a likely distribution deal is stuck on pricing differences. Ever since Nimbus’ Rs 1,000-crore distribution deal with STAR India broke off early last month, Nimbus’ distribution issue has been on a sticky wicket.
Sources close to the development told ET that while Nimbus is asking SET for a minimum guarantee (MG) of Rs 500 crore, SET is willing to cough up only Rs 250 crore. At most, the SET management has agreed to stretch the amount to Rs 300 crore. “Difference have cropped up between the two on terms and conditions of the distribution deal, though discussions are still on between the top management of both broadcasters to reach an amicable solution,” sources said.
Neo Sports CEO Shashi Kalathil said there are differences in pricing, which is why the deal with Sony has not been closed. Nimbus officials had indicated earlier that they would announce either their new distribution partner, or float an independent broadcasting bouquet by mid-June. “Nimbus is in a very difficult situation. Setting up an independent bouquet will be tough since all big broadcasters are already aligned with other bouquets,” sources added.
Moreover, the distribution business runs on the amount of clout a broadcaster has. Considering Neo Sports is quite new is the broadcasting arena, and also is a victim of the recent ordinance passed by the government to share its feed with Doordarshan, cable operators are not particularly willing to distribute the channel. We have made our offer to Nimbus. Now the ball is in their court. We will agree to distribute the Neo channels only if they agree to the price that we have offered, a top Sony official said.
Last week, Nimbus CMD Harish Thawani and Sony CEO Kunal Dasgupta along with officials from the Sony Pictures headquarters met in London to take stock of the issue. The discussions were, however, inconclusive. Meanwhile, Nimbus has tied up with the SET-owned SAB TV to broadcast Hindi commentary for the one-day international India-Ireland series. The break with STAR saw Nimbus dragging the Rupert Murdoch-owned company to a Singapore court, seeking damages of Rs 1,326 crore.
While STAR was seeking a reduction in the minimum guarantee from Nimbus on account of the government’s policy, Nimbus refused to play ball. Nimbus officials charged STAR with delay and default of MG payments, non-performance and suspicion of sabotage owing to STAR’S relationship with ESPN and the subsequent launch of ESPN’s all-cricket channel
You cannot teach a man anything; you can only help him find it within himself.
Its about time for Nimbus to wear diapers, pissing all over the place & causing a stink & mess
Thanks MJ for the news
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