COnsumption of content has changed a lot after the entrance of OTT players like Amazon Prime, Netflix, Hotstar and Zee5 among many more. DTH companies are facing a tough period and problems for them seem to increase in coming days. The rates are going to increase after January 1 because of the new tariff order for the broadcast sector as per the directions of Trai. According to this, consumers now have the option to select and pay only for TV channels they want to watch at the maximum retail price (MRP) set by the respective broadcasters.
If we look at the rates carefully, a consumer preferring Hindi language will end up paying Rs 430-440 per month under the new tariffs. Currently, in tier III and IV towns, consumers pay a monthly bill of Rs 200-250, and in large cities, a cable/ DTH bill for 250+ channels – which includes sports and regional channels costs between to Rs 350-400.
Also, you will have to pay up to Rs 130 (plus taxes) for the first set of 100 channels. This doesn’t include any popular channels from top TV networks like Star India, Zee Entertainment Enterprises, Sony Pictures Networks India etc. if a subscriber wants to buy basic packages from top broadcasters, which include popular genres like entertainment, movies, kids, music, and news, he/she will have to pay an additional Rs 184 for 95 pay channels. In addition to that, a network capacity fee of Rs 100 (Rs 25 per 20 channels) will be extra.
In short, the prices for TV subscribers are going to increase to Rs 450 a month for the basic channels, without regional or sports.
Vivekanand Subbaraman, an analyst at Ambit Capital, said, “One can expect Phase I/II subscribers to pay more but convincing price sensitive Phase III/IV subscribers to cough extra for TV services, who are currently paying Rs 200-250 per month, will be a challenge.
It will be interesting to see how DTH players convince customers to stick with their TV screens even after rising costs.
