With a 25 million-plus subscriber base among the six private DTH operators and addition of over a million subscribers every month, why should Trai regulate or fix tariff for broadcasters on addressable DTH platforms?
Broadcasters argue that because of ample competition in the DTH space, the consumers are getting their favourite channels at a rate lower than what cable operators charge. The ARPU from cable markets stands at Rs 180 per month whereas DTH operators provide channel packages at Rs 125, Rs 150 and Rs 160 per month. Since DTH is an addressable environment, the broadcasters get 100% revenue, which is not the case in the larger cable market. The 35-40% growth rate of DTH subscriber base is evident of the fact that the consumers are getting access to digital quality content at affordable pricing. In such a scenario, Trai?s new tariff order has not only linked the DTH tariffs with the non-addressable, non-CAS cable market but also has reduced the cap from 50% of non-CAS tariffs to 35% for broadcasters who wish to offer their channels on the DTH platforms. It has made broadcasters drag Trai before TDSAT as they are staring at financial losses from DTH space.
Trai started tariff regulations for the DTH when there were only two operators?Dish TV (backed by content providers Zee TV) and Tata Sky (Star TV network as the partner with Tata). Both denied each other their popular content (Zee and Star bouquet of channels). TDSAT stepped in and in its order in July 2006 fixed the DTH tariffs at half the tariffs applicable for the non-CAS market. Since then, broadcasters and DTH operators have worked out their commercial deals in line with the order. Today, most content deals between broadcasters and DTH operators are structured in a way that consumers get to pay Rs 1 to 1.50 per channel per month while the DTH operators also generate revenue. The new tariff order reduces the broadcasters? revenue at the expense of DTH operators.
If Trai steps back and lifts tariff control on DTH and all addressable services, consumers may get to pay even lower subscription because of competition. If at all any broadcaster demands exorbitantly, the DTH operator can remove it from its basic pack to an add-on package. This will reduce the broadcaster?s revenue as basic packs are subscribed by all DTH subscribers while add-on packs are subscribed only on demand. In short, no tariff regulation on DTH will not only accelerate digitalisation but will also help the stakeholders offer better content to consumers at affordable costs.
ashish.sinha@expressindia.com