Cable TV, DTH Bills To Get More Expensive Due To New Rules

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Bills of cable TV and Direct-To-Home (DTH) services are likely to increase for most subscribers, a Crisil report said in Delhi on Monday.

The report said that the new norms, which came into force on February 1, would benefit Over-the-Top (OTT) platforms.

“The network capacity fee (NCF) and channel prices announced by broadcasters and distributors as per the Telecom Regulatory Authority of India (TRAI)’s new guidelines could increase the monthly bill of most subscribers of television channels,” the research report said.

It said that the rules “will be a mixed bag for viewers and distributors”.

Commenting on the report, Sachin Gupta, Senior Director, Ratings at Crisil said: “Our analysis of the impact of the regulations indicates a varied impact on monthly TV bills. Based on current pricing, the monthly TV bill can go up by 25 percent from Rs. 230-240 to Rs.300 per month for viewers who opt for the top 10 channels, but will come down for those who opt up to top five channels.”

Subscription revenues of broadcasters would rise by 40 percent to Rs. 94 per subscriber per month compared to Rs. 60-70 now, it said, adding that with viewers likely to opt for popular channels, large broadcasters would have greater pricing power. 

“Conversely, broadcasters with less-popular channels will find it tough to piggyback on packages, and the least popular ones will hardly have a business case and could go off the air,” said the report.

For distributors (DTH and cable operators), the report observed that the new regulations are a mixed bag. While content cost would become a pass-through, protecting them from fluctuations, they may lose out on the benefits of value-added services such as bundling content across broadcasters, customization and placement revenue, it said.

Currently, most distributors are charging NCF at the cap rate of Rs. 130 per month. Similarly, broadcasters have priced subscription for the most popular pay channels at the cap rate of Rs. 19 per month. 

“In all this, OTT platforms could emerge as the big beneficiary because many viewers could shift because of rising subscription bills. And low data tariffs also encourages viewership on OTT platforms,” said Nitesh Jain, Director, Ratings at Crisil. 

However, these are early days and the situation may evolve with prices charged by broadcasters and distributors declining depending on market forces, viewership, and competitive intensity, the report added.

Source:NDTV

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17 Thoughts to “Cable TV, DTH Bills To Get More Expensive Due To New Rules”

  1. Ashok Karkar

    This TRI decision impacted users’ monthly bill increased.

  2. Balu m a

    The new trai rules about dish or cable tv is only favour of cable operator. Because why pay free fta channel monthly subscription oc minimum 130 rupees. Second is latest family SWAGAT Pack in only 178 rupees & with gst is 209/-. But now currently position is very bad after 1st February such channel pack value is 350 to 450 rupees. New rules only in favour of operator.

  3. Paul F Mechery

    Hi,

    I had a monthly base pack of Rs.99/- per month in which I used to get all the required channels and in all languages. Now with the new introduction the base price is Rs.153/- (only 0 rental channels) and I do not get the channels which I was getting in 99/- per month. Per month 54/- increased and channel decreased.

    I am using Airtel Digital TV from the time it was launched, very early subscriber, rather in the testing phase. I can see that, customers are fooled and really no benefits to the customer.

    TRAI needs to regulate the the channels and no NFC or base price. If I choose 2 channels only two channels amount should be charged and not the base price and plus two channels cost.

    Thanks

  4. Harbhajan Singh

    Network & viewers increased so the rate of /DTH must be slashed instead of increasing . Indian politians can never be satisfied what they have but every leader trying to fill their own utensil either it’s DTH / Diary /Sand,Bajri / Breads etc etc.

  5. Arumugampillai

    The TRAI has solved the issues of different channels fees and other network fees to both public and the service providing operators, though more or less little bit costlier than the earlier subscription. More over every body will have to pay tax if they wish to watch channel programs through network fee and taxes as a proper revenue to government will result tax evasion.
    The Trai has done good job as per supreme Court order in the stipulated period.
    Thanks

  6. Satish

    The dts operates is not allowing the subscribers to choose as per (TRAI) new plan tho chosen.
    If the DTS do this then subscription charges will go up.
    I have take a copy of my plan you may check what my DTS operator is offered to me.

  7. Pratima

    Modi sarkar Janta Ko fool bana rahi hai cable connection sasta karne ke Naam par garib janta ko loot ne ka kaam kar rahi hai

  8. Satish Amale

    Cable TV, DTH Bills To Get More Expensive Due To New Rules

  9. Maheboob

    Pathetic… I had not expected such things will happen in modi’s reign . We were happy in paying RS 300 with all channels but now with selected channels I am bearing RS. 460… Now don’t know what things we will have to face in near future..

    Everything is getting accumulated in the hands of rich people.

  10. Richard

    This is absolute cheating. TRAI officials favouring the channel giants and all service providers (DTH Operators) will channels giv add free programs…… how can they fix rates…. ppl are made fools….. after getting kick backs concern officials grant all permissions……

  11. Harish Kumar

    It’s true, as per TRI’s new notifications it has become more costly to view channels. Where we can watch the channels within 220-230 similar packages are now reached at 350-400.

  12. S.S

    Sh. Ram Sevak Sharma who is the chairman of TRAI, in connivance with service providers, has increased the bill of DTC/Cable TV by 25 per cent. Whereas he says the price of cable tv will be reduced after these guidelines which is incorrect. This has been done to benefit the service provider.

  13. shrikant chavan

    cu…… banaya hai sabko …….all was going good initially i was paying 350/-rs for all channel including all kids channel ,english movies and etc…
    but now after paying the same amount i am getting what ? only 12 pay channels

    this is rediculus …..and a big chu…..

  14. Ace

    Fixed Monthly charges should be done away with and then it would be some what rational or there would be marginal increase / decrease in package charges which would be good for both the broad casters and viewers.

  15. Pramod Naik

    We were ok before. There was no need to make changes. Or ensure we have chance to fall back.

  16. G R Ravi

    We have totally lost our flexibility and paying more thanks to Trai. Great chaps fooled citizens. I would say reverse the order and help viewers. BJP has axed its own legs by this rule.

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