In a recent broadcasting industry stakeholder consultation roundtable meeting, a part of the Curtain Raiser event for the inaugural World Audio Visual and Entertainment Summit (WAVES), Harit Nagpal, CEO, Tata Play, emphasised the need for a uniform licensing regime and fair regulatory compliance across all players, including OTT and DD Free Dish.
He raised concern that the DTH industry is over-regulated and also highlighted that DTH has lost 3.3 million users over the past three years due to these challenges.
Nagpal further underscored, “While DTH operators face rigorous regulations, OTT platforms operate without such frameworks. The industry suggested either extending the same regulatory framework to all or introducing forbearance for traditional distribution platforms.”
Additionally, the industry also urged government support to alleviate the tax burden on the DTH sector and recommended eliminating DTH license fees to ensure parity.
During the roundtable, industry members suggested innovation in digital technology through plastic waste management in hardware to support sustainability within the industry. With the proliferation of high-resolution displays and energy intensive hardware, DTH providers must prioritise sustainability and eco friendliness in their operations. Industry suggested policy initiatives/guidelines on sustainability which includes adopting energy-efficient technologies, reducing carbon emissions, and promoting responsible recycling and disposal practices.
The cable industry also raised concern over advertisement ticker on paid cable channels. The advertisement ticker takes up most of the space on television screens which disrupts the viewing experience for paying customers. Customers who pay for cable services expect an uninterrupted experience, similar to that of premium, ad-free streaming services. From a regulatory perspective, there is a need to balance consumer protection with broadcasters’ revenue models.
The cable industry emphasised that regulators might establish guidelines on ad placement to ensure a premium, less interrupted experience for viewers.
The cable tv industry has also raised objections to the advertising time on pay tv channels. Industry urges that the broadcaster should take into account the extent to which increasing the number of advertisements shown will cause viewers to switch off or switch channels.
The basic business model, however, is that broadcasts are used as entertainment for viewers and these broadcasts also carry advertisements. Viewers are then exposed to advertisements as a side product of their consumption of the entertainment content. The entertainment content is paid for by advertisers who use the intermediary of the broadcast company to deliver messages to the advertising firms’ prospective customers.
This model may be described as “a two-sided market with network externalities” where the intermediary, the broadcast company, is a “platform” that needs to get both sides on board in order to generate revenues. However, the TV broadcast industry heavily relies on advertising revenues.
A clear understanding of the dynamics of the television broadcasting business is essential for any further regulation. Addressing these issues with clear guidelines will enhance transparency and consumer satisfaction for Pay TV.
