Cable TV

MSOs share different outlooks on impact of NTO 2.0

The amendments have come into effect from 1 March.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/03/02/MSOs.jpg?itok=f-Jxtji2

MUMBAI: All the stakeholders of the broadcasting sector had a tough time coping with the new tariff order (NTO), which was implemented last year. While TRAI brought amendments to the new price regime, touted as NTO 2.0, on 1 January, it has again sent tremors across the industry. The changes have irked broadcasters but multi system operators (MSOs) have different opinions on NTO 2.0’s impact.

The NTO had a drastic impact on the players in the cable industry resulting in a dip in subscriber base. However, Siti Networks nodal officer for broadband and video verticals Vishwa Bandhu Sharma feels that the new provisions will not disrupt MSOs again.

He told Indiantelevision.com, “There was a lot of subscriber loss when NTO 1 came in effect. Multi-TV homes stopped using their second and third TV sets. But with NTO 2.0, we are expecting them to activate those TV sets again.”

Speaking about the impact that the reduction of prices will have on the industry, Sharma shared that the ARPU would remain more or less the same because of the discount on the NCF. He said that he is expecting people to move to more a-la-carte selections for channels that have good content but are not a part of the new bouquets.

While Sharma believes that MSOs will benefit from NTO 2.0, one of the major MSOs, not willing to be named, opined that the changes will affect the top and bottom lines of both MSOs and local cable operators (LCOs).

“Discount of 60 per cent on additional TV will result in revenue loss for both MSO and LCO. The loss will be 12-15 per cent and will reflect in the top line and bottom line. Even if 10 per cent STBs (second TV) are recovered, the loss will be 8-10 per cent,” the executive from the other MSO stated.

TRAI also said in the amended regulation that broadcasters shall not be permitted to give any discount for adoption of bouquets to DPOs in the 15 per cent category as permitted in Interconnection Regulations 2017. According to the executive, this will result in the reduction in bottom line of the MSOs. Additionally, it will increase disputes between the broadcasters and MSOs.

While DD channels have been excluded from NCF, the executive said: “We have invested in infrastructure for building channel capacity and delivering it to subscribers. We cannot charge placement from the government but our right to charge NCF subscriber should not be withdrawn.”

Siti Network’s Sharma also added, “When broadcasters were given a chance to rework their prices, they took it to the maximum level and also charged a premium rate. They also included their low base channels in the bouquets, even with bouquet price at 50-60 per cent off. Of course, it (NTO 2.0) will be a disadvantage because now to include those channels in the bouquet, they will have to reduce the price or they will have to leave the channel out for a-la-carte selection. People will not be subscribing to lesser popular channels, and that’s why they are not happy.”

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/04/01/cable.jpg?itok=erwhoorl
Don't disconnect cable service for next 1 month due to non-payment: West Bengal govt tells operators

MUMBAI: West Bengal government has directed not to disconnect cable TV connections for the next one month if subscribers fail to pay monthly bill. This is in view of the fact that there are chances of households being unable to meet monthly expenses on account of the current impasse due to the...

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/03/27/gtpl.jpg?itok=8FNPrpVx
GTPL Hathway sees demand surge on both cable, broadband amid the lockdown

As the country battles the COVID-19 crisis, a large chunk of the population is confined at home. To ease the burden of social distancing, most of the people are consuming more content, both on linear TV and online.

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/03/24/vy.jpg?itok=V2FZ0U1m
IMCL's business continuity plan to ensure LCO safety during COVID-19 crisis

Organisations across the globe and across sectors are re-orienting work procedures amid the COVID-19 pandemic as the crisis continues to escalate. While remote work is easier for a few organisations, the industries which demand on-ground work are facing tougher challenges; distributor platform...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/03/02/cable_TV_REMOTE.jpg?itok=wFa1yYw9
MIB grants registration to 15 MSOs in Feb

MUMBAI: The Ministry of Information and Broadcasting (MIB) has published a document listing all the registered multi-system operators (MSO) in the country. As per the document, there are 1645 registered MSOs in India as on 28 February 2020. Fifteen MSOs were granted registration in the month of...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/25/cover.jpg?itok=9WHCfwTq
IMCL's Vynsley Fernandes on NTO changes, tech improvements and staying relevant

In the last couple of years, streaming services have emerged as a big challenge to traditional cable distributors while the business model has changed too owing to the new tariff order (NTO). Amid the flux, upgrading the existing structure, technology and strategy has become necessity to stay...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/20/GTPL.jpg?itok=PhsFMvaM
GTPL Hathway believes NTO 2.0 won't affect price stability

MUMBAI: At the very beginning of 2020, the Telecom Regulatory Authority of India (TRAI) issued fresh amendments to the New Tariff Order (NTO) within less than one year of its implementation. Rattled by the sudden change, the stakeholders in the industry seem to be displeased. But in contrast, GTPL...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/18/mukeshambani2.jpg?itok=_InKKpUx
Ambani’s Reliance merges media & distribution biz under Network18

MUMBAI: When you are Mukesh Ambani, you think size,  you think scale. Even as speculation is running rife whether a deal with Sony Pictures is on, the chairman & managing director of Reliance Industries yesterday announced that the megacorp is consolidating its media and distribution entities...

Cable TV People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/08/Siti-Network-Limited.jpg?itok=3pL0t7tE
Siti numbers improve on optimisation of major matrices

Indian leading multi-system operator (MSO) Siti Networks Limited (Siti) reported 7.8 percent increase in revenue from operations at Rs 1,210.29 crore for the nine month period ended 30 December 2019 (9M 2020, YTD 2020) as compared to the Rs 1,122.71 crore for the corresponding nine month period of...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/04/nxt.jpg?itok=luK6mgfL
NXTDIGITAL reports total income of Rs 938.68 cr for 9 months ended 31 Dec

NXTDIGITAL Ltd on Monday reported its financial results for the third quarter and nine months ended 31 December 2019. On a consolidated basis, the company reported a total income of Rs 938.68 crore for the nine months ended 31 December, 2019 as against a total income of Rs 527.36 crore for the...

Cable TV Multi System Operators

Sign up for our Newsletter

subscribe for latest stories

* indicates required