The move, Siti Cable had stated in a previous statement, would also assist ensure that the content cost is in sync with average revenue per user (ARPU) and market scope.
Two Essel Group entities, Siti Cable and Dish TV India – are going to form a joint venture company to be able to synergise their contributions while also reap the benefits of improved negotiations with broadcasters on content and carriage fees. Christened C&S Medianet Pvt Ltd, the Joint Venture is also being formed to ensure costumers get access to quality content at fair prices.
While Siti Cable will have 48% in C&S Medianet, the balance 52% will be owned by Dish TV India. The Board of Siti Cable has already confirmed the formation of this joint venture, wherein it will subscribe to memorandum of such new firm for 4,800 equity shares of Rs 10/- each aggregating to Rs 48,000.