DTH

Subscribers' DTH/Cable bills to go down by 14% for a-la-carte channels: ICRA

TRAI on 1 January 2020 had amended some provisions of new tariff order 2017

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/01/08/icra.jpg?itok=mdt0WoyL

MUMBAI: The recent Telecom Regulatory Authority of India (TRAI) amendments over tariff charges could potentially lower the direct-to home (DTH)/ cable bills of the subscribers up to 14 per cent from the present levels, a credit rating agency ICRA said in an analytical report.

According to a press statement, ICRA said that the amendment encourage subscribers to exercise their right to choose and opt for a-la-carte channels. TRAI on 1 January 2020 amended some provisions of the Telecommunication (Broadcasting and Cable) Services (Eight) (Addressable Systems) Tariff Order, 2017.

The amendments are slated to come in effect from March 1, 2020.

The Tariff Order released in 2017 had allowed the subscribers to choose the nature of channels as free to air (FTA) or pay channel as well as declare a-la-carte pricing of all channels.

However, contrary to TRAI’s expectations, the rating agency said, given the high channel pricing of the popular general entertainment channels (GECs) and sports channels (with 66 of the 330 existing pay channels being priced at the ceiling rate of Rs. 19 per month).

This move by broadcaster had tarnished the very purpose of the Tariff Order, resulting in up to 23% surge in bills for subscribers, ICRA estimated, and continued the dominance of bouquets in the subscription patterns.

ICRA’s vice president Kinjal Shah said, “The recent amendments will adversely impact the broadcasters, revenues, the subscription revenues are also expected to reduce (as subscription charges for a-la-carte channels will reduce and due to the expected shift of subscribers from bouquets to a-la-carte selection).”

Shah further said, “Furthermore, given the reduction in the number of channels that can be offered in a bouquet (for a given price), bundling of non-popular channels with established ones will reduce, thereby impacting their reach and thus advertisement revenues for the broadcaster. This, however, would eventually lead to an increased focus on content quality.”

TRAI in the amendment of 2017 tariff order has also increased the channel offerings for the network capacity fee (NCF) of Rs. 130 (excluding taxes) per month to 200 standard definitions (SD) (pay or FTA) channels from the present 100 SD channels.  

The amendments are expected to be a mixed bag of positives and negatives for DPOs. The overall reduction in NCF and the cap on NCF to be charged for additional TVs in a multi-TV home is negative for the DPOs.

TRAI has, however, allowed DPOs to offer different NCF across geographical regions (state / district / towns) as well as offer promotional schemes (on NCF / Distributor Retail Price - DRPs), up to 90 days at a time, twice in a calendar year. DPOs are additionally allowed to offer discounts on NCF / DRPs for long-term subscription plans.  

ICRA’s assistant vice president Sakshi Suneja, said, “After the recent changes in the tariff, the prices of popular GECs and sports channels are expected to reduce from Rs. 19 per month to Rs. 12 per month, given the revised ceiling rates for a-la-carte channels, to be included in bouquets.”

“The amendments also seek to improve the attractiveness of a-la-carte channels, by reducing discounts that can be offered on bouquet pricing to 33% (vis-a-vis a-lacarte prices, from the existing average levels of discounts of 40-54%),” Suneja said.

She pointed out that through the introduction of two new conditions: i) capping the maximum retail price (MRP) of a-la-carte channel that can be included in a bouquet to up to three times of the average MRP per month of a pay channel of that bouquet and ii) MRP, per month, of a pay channel to not exceed the MRP, per month, of the bouquet containing that pay channel.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/26/tata.jpg?itok=YC8w_-FO
Tata Sky Binge adds Amazon Prime Video to its streaming bouquet

In a bid to bolster its OTT game, Tata Sky on Monday announced that it has extended its integrated content offering on the Tata Sky Binge Mobile app by bringing onboard the streaming giant, Amazon Prime Video.

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/19/tata-sky.jpg?itok=-CQxyTqz
Tata Sky partners with Vedantu to empower JEE & NEET aspirants

Content distribution and Pay TV platform Tata Sky has partnered with Vedantu to make quality education accessible and affordable to students across India.

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/16/photogrid_plus_1626419084678.jpg?itok=xvBnIVCM
Tata Sky launches 4K HDR internet streaming service

Mumbai: Tata Sky, one of the leading content distribution and Pay TV platforms, has announced the launch of its 4K HDR streaming service. All TVs enabled with 4K HDR can enjoy this service through Tata Sky Binge+ Box at no additional cost for the first year.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/01/tata.jpg?itok=QFxU2B8M
Tata Sky collaborates with PTC Network to strengthen its regional connect

Mumbai: Tata Sky has joined hands with the PTC Network to bring back its regional service - ‘Punjab De Rang’, starting today.  The revamped service will further strengthen Tata Sky’s regional entertainment portfolio by offering a popular and diverse mix of high-quality Punjabi content, at a nominal...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/01/dishtv.jpg?itok=a_ekC87u
Pandemic drags down DishTV India’s FY’21 financials

India’s first DTH operator Dish TV India continues to slog it out to get out of the financial quagmire it has got itself into. That’s despite the fact that the company  has seen a loss of subscribers in its latest quarter ended 31 March 2021 and for the full year, its top line has dipped even as it...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/15/photogrid_plus_1623741446549.jpg?itok=ydkDYTew
Dish TV India joins hands with JOP Network for dubbed movie service “Hits Active”

New Delhi: Dish TV has joined hands with content house, JOP Network Pvt Ltd to re-introduce dubbed movie service– Hits Active, in a new Avatar to broadcast International and South Indian hit movies dubbed in Hindi. Hits Active is an ad-free service showcasing all genres of blockbusters. The service...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/11/tata.jpg?itok=UdSEyCDV
Binge app sees traction from non-metros- DAS 2, DAS 3 cities: Tata Sky’s Pallavi Puri

Pay TV meanders along in India, even as the near future will expectedly watch digital adoption accelerating at a rapid pace of disruption. The legacy direct-to-platform (DTH) players are taking note of the shift in consumer habits to keep up with the trend. Tata Sky has been one such player to...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/10/tata.jpg?itok=F2HZEgMk
Tata Sky unveils its newly revamped music service, Tata Sky Music

Aligned with its new brand purpose to make tomorrow better than today for its subscribers, content distribution, and Pay TV platform Tata Sky on Thursday unveiled its revamped music service offering, Tata Sky Music.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/02/bai.jpg?itok=vGbZzpse
Tata Sky Binge app now available on smartphones

Leading Pay TV platform Tata Sky has extended the benefit of its pioneering OTT content aggregator service, ‘Tata Sky Binge,’ to mobile with the introduction of Tata Sky Binge Mobile app.

DTH DTH Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required