Full Explain New Rule Of Dth & Cable Tv

full Explain New Rule Of Dth & Cable Tv

After the TRAI pricing order came into force on December 29, the consumer will get freedom of ration channels every month, but the cost of bundle pack can be high.

BARC data says that 50% of viewers do not see more than 30 channels, but they are sold a bundle pack of 300 channels, which costs between Rs 250 and Rs 450, depending on whether this cable Connection or DTH service

After the new tariff order issued by the Telecom Regulatory Authority of India (TRAI) on December 29, consumers will be able to choose and pay the channels they want to see. To see 100 free-to-air channels, they have to pay a minimum of 130 rupees and can select pay channels individually. Simply put, the consumer gets the freedom to take ration every month to the subscribers.

TRAI says that the new regime will give strength to the power by giving consumers the power to choose. But the industry is not completely convinced. It assumes that consumers can end up paying more. However, TRAI believes that if viewers want to retain viewers, then channels can reduce prices.

The Authority assured consumers that there will be no blackout on TV channels and the transit will be run smoothly.

Price list for base value pack

Star India: Rs 49 (13 channels)

Zee Entertainment: Rs 45 (24 channels)

Sony Pictures Network: Rs 31 (9 Channels)

IndiaCast: 25 rupees (20 channels)

Disney: Rs 10 (7 channels)

Discovery Network: Rs 8 (8 channels)

Times Network: Rs 7 (4 channels)

Turner: Rs 4.8 (2 channels)

NDTV: Rs 3.5 (4 channels)

TV Today Network: 0.75 Paise (2 Channels)

How much will the consumer pay for monthly entertainment?

Under the new regime, a consumer will have to pay a base fee of 130 + taxes for the primary set of 100 channels. This set will mainly include free-to-air (FTA) channels and will not include popular ones offered by major broadcasters.

As a result, the consumer will have to choose which extra channels they would like to include in the primary set. If the consumers choose the basic price pack, then they have to pay a total of Rs 184 for the 95 channels offered by 10 broadcasters. If that is not all, according to the new structure, for 20 additional channels, a network fee of Rs 25 will be levied. So, the subscriber has to pay an additional 100 rupees in the form of network capacity charge for 95 channels.

After the new regime, the consumer will pay 450 rupees per month for the original price pack. The original price pack is available only for SD channels and does not include premium channels like sports or regional. For HD users, the consumer will double the original price pack. In addition, if the consumer opposes a la carte pricing, the monthly bill will be more than Rs 400, because bundles offered by the broadcaster are at concessional rates.

Prathyusha Agarwal

Prathyusha Agarwal, CMO, Zeel, said, "Consumers are going to transfer their monthly budget to the channels they really like and on the channels they did not put in the cold. If we consider those consumers If you can pay 350 rupees per month then the pricing is in their budget, but for the consumers who can pay Rs. 250, for them, a small amount a bit of reallocation will happen. "

At present, consumers pay monthly bills of Rs 250-350 for cable connections, which include sports and regional channels. While DTH users pay about 300-450 rupees a month. If consumers opt for six months or yearly pack then rates get discount

How will the new tariff system affect consumers?

The new regime has been implemented keeping in mind the aspect of 'power'. With current pricing it seems that the consumer has to pay a lot. Bundle packages do not work, and the consumer has to pay for each channel with different broadcasters. Now, broadcasters are presenting bundle packs, but each broadcaster has its own rates which are different according to the markets. The consumer will need to spend extra to add each channel.

Major broadcasters have tied bouquets of their own channels, which are divided into HD and SD channels. The base bouquet includes popular channels with low-performing channels. Consumers can opt for these bouquets or choose a single channel based on La carte (MRP) basis. Regulators have capped the price limit on Re1 - 19. Broadcasters have introduced their popular channels in 19 bucks, whereas the top and less popular channels have given between 1 rupees and 10 rupees.

Sanjay Gupta

"Under the new regime, broadcasters are offering monthly contracts, not long-term. Star India Managing Director Sanjay Gupta said that consumers can download and sign the agreement for the channels and they will be paid on the basis of the number of consumers who receive them every month.

Sudhanshu Vats

Not only for consumers, pricing is the same for DPO, LCO and MSO. Distribution platforms can create their own bouquets but they will have to pay the fixed price to the broadcasters. "DPO can bundle their own pack. But they have to pay the broadcasters according to the proposed price pack. If the DPO broadcaster chooses one of the channels, then they will have to pay the proposed la carte price, "Sudhanshu Vats, Group CEO and MD, Viacom 18 said.

No fixed discount caps

At present, the pricing given by the broadcasters is set on different exemption, which ranges from 35% to 55%. For now, there is no definite discount cap. If the Supreme Court decides on the 15% discount cap proposed by TRAI on the bouquet of the channel, the pricing will change.

"If the regulator asks us to change, following the 15% discount cap, the pricing will change, but in Zee now we are seeing it as a behavioral change. We will study consumer feedback - what they pay Ready and do not change - accordingly, the bouquet is seen on staples and value which is found on surfing. And we are continuously doing research to understand that FMCG product pricing is different at all times and depends on market research. With this decision, our range will reach that stage which is a very welcome step. "Agrawal said.

Watts and Gupta also agreed on the change in pricing if the Supreme Court increases the cap by 15%.

"If you currently see some channels and discounts given, then it is more than 15%, so the channel pricing needs to work again according to definition. I do not know the value will decrease for the consumer because we have made it in a lot of discount, "Watts said.

Issues with DTH and LCO

While the tariff order industry will bring very necessary transparency in the value chain, consumers will suffer the high value of the price. Consumers with cable / DTH connections are still in the dark about pricing because they are not yet offering their listings.

DTH operators are giving a reason to argue about high pricing being offered by broadcasters, while LCOs are worried that the new government will bring down their earnings.

vats said that if DTH operators did everything, then pricing would be more. "The argument is that if you collect everything available and say that you have to buy everything, then this tariff defeats the purpose of the order. The order allows the user to choose what they want. If they want what they choose, they do not need to do everything. "He said.

According to the TRAI statement, the new structure brings in the structure of fixed revenue for MSOs and LCOs under the network capacity charge. In addition, LCOs will have the facility of negotiating their revenue share with MSO as per the structure provided under the Model Interconnection Agreement (MIA).

The regulator has made 80% -20% revenue share mandatory between the broadcasters and the DPO. Between MSOs and local cable operators (LCOs), TRAI has held 55% -45% revenue share. In the original pack of 100 FTA channels, which comes at the price of 130, the MSO gets 55% whereas the local cable operator takes 45%.

In order to protect the interests of cable TV consumers, TRAI has capped Rs 500 as installation and activation fee for cable and DTH services. Under the new regime, 350 rupees will be charged in the form of installation charges and Rs 150 for activation charges. Authorities also instructed local cable operators and multiple system operators (MSOs) not to force them to buy or buy set-top boxes (STBs) from them alone.

Recently, on 24th December, the Coordination Committee of Cable TV operators opposed the move of TRAI and petitioned the district administration. The committee said that with the new move the monthly cable bill will be approximately 800-900 rupees per month. This increase will hinder their revenues because they are still recovering from monetization and GST. The committee also highlighted the fact that in some states digitization is yet to be completed.

Temporary respite for Tata Sky customers

The DTH operator had argued that the new regulation would improve the business model of DTH operator. Tata Sky Carriage is fighting with the rule of duty and it should follow the clause. It argues that the new rules will severely disrupt the right to negotiate a seriously negotiated agreement.

In May 2017, the DTH operator challenged the order and interconnection regulation. The hearing was scheduled to be held in Delhi High Court on December 20, but was reassigned on January 10, 2019. Tata Sky appealed that TRAI orders and rules violate Article 19 (1) (G) of the Constitution of India, which allows citizens to "practice any profession, or to run a business, business or business. " Ensures.

TRAI has assured Tata Sky that he will not take any concrete action against it. During the hearing, Tata Sky requested the court to ban TRAI with any tremendous action. TRAI's lawyer, responding to the request, said that till the next hearing the body will not take any concrete action against it. Despite the assurance, the TRAI counsel stressed the implementation of tariff order and regulation from Tata Sky.

No blackouts or expansion of deadline for channels

After December 29, the blackout of the channels was one of the main concerns. But officials said that there will be no black money.

According to the TRAI statement, the new structure does not change the prevailing market structure under the MIA / SIA-based regime, which has existed since March 2016. The built-in standard interconnect agreement (SIA) reduces the risks of LCOs that may arise from delayed failure negotiations. .

"In the previous regime (before the MIA / SIA-based structure), the result of such delayed or failed talks can be blackout. However, the availability of a fall-back mechanism under the SIA regime will not affect the interests of LCOs / consumers The blackout or disconnection of the signal, "TRAI's statement was read.

Since there was uncertainty on the new tariff order, broadcasters were hoping to extend the deadline. Gupta said, "We expect that there may be some early chaos, which will take some time to settle, TRAI should lead this change and if all the players are not prepared, then TRAI will have to give some more time, "Gupta had said.

But TRAI has said that there will be no extension of time and this order will be implemented on December 29.

Impact on ad revenue

When consumers select their channel, then low-performing people will be out in the process. Deterioration in channels will affect advertising revenue. A media planner said, "Since there is no clarity, there will be interruption once again. Broadcasters have to educate consumers, for advertisers it would be wise to bet on popular channels."

On the other hand, Watts said that the impact on advertisers would be more due to the micro economic health of the country's economy. If the economy is healthy, then there will be no change. However, he agrees that there will be some instability in revenue and some costs will be spent.

Watts said, "Consumers will continue to see their habit, so that the number of viewers increases and advertisers should be prepared to pay for reaching the audience." My optimist approach says there will be no major impact on the topline. Will continue and will present new shows to attract consumers and advertisers will continue to pay for that viewer E. "

BARC measurement on viewers

Since the TV ecosystem would be interrupted, it would be difficult to determine the number of viewers. The sample will change after the implementation of the new regime. Gupta said that the BARC should stop issuing viewers' data for a few months as soon as the order is implemented.

"We have 180 million homes through 40,000 boxes. If there are chaos in 10,000 boxes then the ratings are not reflected. Everybody in the industry wants to check the sample again and the BARC board has to decide the next step. '"And it can make things clear to advertisers after the initial anarchy to a lesser extent."