TDSAT directs Viacom to pay Rs 2.68 cr to MSM Discovery

Broadcast tribunal TDSAT has held that Viacom's move to terminate its pact with MSM Discovery in June last year "was not legal" and asked it to pay damages equivalent to three months of profits to the channel distributor. Passing the 193-page order, the Telecom Disputes Settlement and Appellate Tribunal has asked broadcaster Viacom to pay Rs 2.68 crore. MSM Discovery is a 74:26 JV between Multi Screen Media (Sony group) and Discovery Communications to distribute their channels. Viacom, on the other hand, broadcasts popular channels such as MTV, Colors, Nick and VH1.

On February 11, 2009, the two signed a pact for the distribution of Viacom's channels by MSM. However, Viacom alleged later that MSM Discovery had misrepresented and under-reported its subscribers' base. It also said that the distributor packaged Colors in an unfair manner, as despite being one of the best-rated Hindi entertainment channels, it was not included in the basic tiers/bouquets/packages of DTH operators like Tata Sky and Dish TV. When MSM Discovery placed their own channel Sony in more prime packages right on the top, on June 13, 2010, Viacom terminated the distribution agreement. The matter was taken before TDSAT by both parties.