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Tuesday, July 31, 2012

Sun TV shares jump on tie-up with Arasu Cable

Sun TV shares jump on tie-up with Arasu Cable 




CHENNAI: After prolonged talks with Sun TV Network Ltd, the state-run Tamil Nadu Arasu Cable TV Corporation signed an agreement with the Kalanithi Maran-owned firm.

The deal will ensure total availability of the Sun channels on all cable TV distribution systems run by Arasu in the state. The Sunnetwork Group has informed the Bombay Stock Exchange about the agreement with Arasu.

Sources from both Sun TV and Arasu cable also confirmed to ToI that an agreement was signed between them recently.

In a bid to end the monopoly of private players in the cable TV business, chief minister J Jayalalithaa revived the operations of the state-owned Arasu Corporation across Tamil Nadu barring Chennai soon after she returned to power last year.

However, Sun TV network was not made available in Arasu network. Due to public demand, Arasu Corporation officials had continuous talks with Sun TV, which dragged on since last year with both the companies failing to arrive at mutually agreeable rates. The two finally struck a deal recently.

Sun TV already enjoys a dominant market share in terms of viewership ratings and the new arrangement with Arasu will facilitate in further enhancing the competitive positioning of the company's popular programming, said sources.

The Sun network group will also now start earning additional subscription revenues from the state through this agreement.

Soon after its relaunch, the Arasu Cable had initially made available 90 channels, including some pay channels, at a monthly charge of just Rs 70.

SOURCE-timesofindia.com


Kalanithi Maran owned Sun Television Network today announced a tie-up with state government promoted Arasu Cable Television Corporation for availability of all its channels in the latter's cable tv distribution system network in Tamil Nadu with immediate effect.

"This agreement will enable total availability of the company's channels on all cable TV distribution systems run by Arasu Cable across Tamil Nadu with immediate effect", Sun TV said in a filing to the BSE.

Arasu Cable TV Corporation provides signals to cable operators in Tamil Nadu, except Chennai, at a subscription of Rs 70 a month.

According to its website "the aim of the Corporation is to provide signals to the public through local cable operators and multi-system operators to end users at affordable cost.' Sun Television Network noted it holds a "dominant” market share in terms of viewership ratings and said the new arrangement would help further enhance the competitive positioning of it's 'extremely popular' programmes.

Besides,it would now start earning additional subscription revenue from Tamil Nadu through this agreement with Arasu Cable TV Corporation, the company said.

Shares of Sun TV were trading at Rs 271.20 apiece, up by 4.75% over the previous close in the BSE.


SOURCE-moneycontrol.com

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