Hathway signs peace pact with Sumangali Cable Vision

The reason? Major satellite channels are
31 May 2000

Residents in some pockets of Chennai were surprised to see the SCV (Sumangali Cable Vision) logo on their cable channel instead of C-Chennai recently. For the satellite and cable television industry watchers, this was an interesting development. The one question that raked their minds was: has SCV acquired C-Chennai?

For the uninitiated, SCV is a division of Sumangali Publications Ltd, which owns a major chunk of the Sun TV network. C-Chennai, on the other hand, is the cable channel of Rajan Raheja group's Hathaway Cable & Datacom Private Ltd, Mumbai.

Clarifying the matter, Mr. Kalanithi Maran, chairman and managing director, Sumangali Publications, explains, "It is not a takeover. We have entered into a strategic business agreement with Hathway Cable."

"This agreement is the first of its kind in India and many such deals can be expected in the next two years," says Mr. E.V.S. Chakravarthy, vice president, Hathway Cable.

The reason? Major satellite channels are themselves getting into cable distribution, giving the multi services operators (MSOs) like Hathway Cable, a hard run for their money. The strategic business deal between SCV and Hathway Cable can also be termed as a peace pact after fighting intensely to gain supremacy in the Chennai cable distribution market (see Peace after war).