Culver Max Entertainment, which operates under the Sony Pictures Networks India (SPNI) brand name, is set to restructure its operations by reshuffling senior management and initiating cost-cutting measures, as it recalibrates its business strategy amid tough market conditions.

The plans include laying off over 100 employees, said sources privy to the development.

The company, which owns and operates 28 TV channels such as Sony Entertainment Television (SET) and Sony Max, besides streaming platform SonyLIV, is likely to outsource post-production work, which could impact a sizeable chunk of the jobs, they added.

The remaining job losses are expected to come from marketing, advertising sales and Broadcast Operations & Network Engineering (BONE), which manages backend operations.

The company is likely to unveil a new organizational structure tentatively by the end of this month, sources noted, adding that it had initiated a restructuring exercise earlier this year.

This is the first major strategic exercise under SPNI CEO Gaurav Banerjee, who took over the role in August 2024. While SPNI did not respond to queries, a source said the company has outlined an organizational evolution aligned with its long-term strategy.

The development comes at a time when the company’s core linear television business continues to decline, while digital revenues have yet to fully offset losses from TV.

The decision will help SPNI control its employee benefit expense, which surged 21% to Rs. 652 crore in FY25. SPNI’s net profit nearly halved to Rs. 456 crore in FY25 from Rs. 843 crore a year earlier. Revenue from operations fell 4.4% to Rs. 6,151 crore, while total expenses rose 5.6% to Rs. 5,770 crore.

Apart from downsizing, SPNI is also expected to restructure its senior management team by handing additional responsibilities to existing leaders. The company is also considering changes to its TV and digital businesses, besides consolidating the revenue function.

Over the last two years, several senior executives have exited the company, including former Sony Entertainment Television (SET) head Neeraj Vyas, TV ad sales head Sandeep Mehrotra, and most recently, Sony LIV head Danish Khan.

Sony Pictures Entertainment (SPE), part of Japan’s Sony Group Corp, derives around 10% of its global revenue and profit from India, making it one of its largest markets outside the US. It is among the last large US media companies to remain in India, apart from Warner Bros Discovery.

Rivals such as JioStar and Zee Entertainment have also undertaken workforce reductions in the last couple of years due to pressure on profitability.

JioStar’s headcount shrank by over 500 employees following the restructuring triggered by the merger of Star India and Viacom18.

Zee Entertainment has sacked around 700 employees as part of a restructuring exercise underway since 2024, after its merger with SPNI fell through.

Mumbai: TV broadcasters are implementing inflation-linked increases in TV channel bouquet rates to offset rising content costs and a subdued advertising environment. However, concerns persist about subscriber churn due to the growing popularity of over-the-top (OTT) platforms and DD Free Dish.

Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises (ZEEL) are among the major broadcasters that have published updated broadcast tariffs. Star India, also known as Jio Star, is expected to release its tariff soon.

Both SPNI and ZEEL have raised the prices of their base bouquets by over 10%. Jio Star is anticipated to implement a significant hike due to its strong presence in general entertainment and sports. The new pricing is effective February 1.

SPNI's Happy India Smart Hindi pack now costs Rs. 54, up from Rs. 48. However, the bouquet now also includes a Hindi movie channel, Sony Max 1. Meanwhile, Zee Family Pack Hindi SD now costs Rs. 53, compared to Rs. 47 previously, and includes English entertainment channel Zee Cafe.

The price hike comes at a time when the pay-TV industry has declined to fewer than 100 million homes, down from 120 million to 95 million in recent years. According to TRAI's latest Performance Indicator Report, the combined paid active DTH base of four private operators - Dish TV, Airtel Digital TV, Tata Play, and Sun Direct - shrank by 2.26 million to 59.91 million as of September 2024.

Distribution platform operators (DPOs) are concerned that annual price hikes by broadcasters will add to their burden, as subscribers have multiple alternatives, including premium OTT services, DD Free Dish, and YouTube, which continue to gain traction across various consumer segments.

However, TV broadcasters argue that they have no option but to increase bouquet rates despite fears of a shrinking pay-TV universe. They point out that the advertising revenue of major broadcasters remains under pressure due to slower growth in advertising expenditure (AdEx) and a shift in advertising strategies toward digital platforms. "The pay-TV universe will continue to decline even if we don't implement the rate hike, but at least we can protect our revenue by increasing the average revenue per user (ARPU)," said a senior TV broadcasting executive on condition of anonymity.

This marks the third consecutive year of bouquet price increases following the Telecom Regulatory Authority of India's (TRAI) amendment of the new tariff order (NTO) after a protracted legal dispute between broadcasters and the regulator.

A cable TV official, also speaking on condition of anonymity, described the price hike as a "double whammy" for DPOs, who bear the brunt of consumer dissatisfaction. "Price hikes by broadcasters will definitely increase churn. So far, DPOs have shielded consumers from the full impact by keeping the network capacity fee (NCF) at a reasonable level," he added.

The NCF is the fee consumers pay to DPOs for transmitting content through their networks. Bouquet rates are passed on by DPOs from consumers to broadcasters after retaining a commission.

Broadcasters are also adhering to the recent Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order, which declined interim relief regarding pay channels on DD Free Dish. The regulation mandates that free channels on Prasar Bharati's DD Free Dish cannot be classified as pay channels on addressable platforms like Hathway Cable and Tata Play.