Bharti Telemedia’s DTH arm, Airtel Digital TV (ADTV), has increased the lock-in period of À-La-carte channels on its channels from 1 day to 30 days. The move comes after the implementation of the Telecom Regulatory Authority of India (TRAI) New Tariff Order 3.0 (NTO 3.0) in the broadcasting industry in India.
According to the new policy, customers won’t be able to drop any added channel before waiting for 30 days. Additionally, the full 30 days amount will be deducted immediately after adding any channel, instead of the regular deduction based on the Daily Burn Rate (DBR). ADTV has become the only DTH company in India with such a long lock-in period, whereas other operators are still maintaining the 1 day lock-in period policy.
The lock-in period is a time frame during which customers cannot remove channels added to their accounts. ADTV’s decision has received wide criticism from its customers as it heavily restricts their freedom to pay only for channels they want to watch. Some customers have expressed their concern over the lack of flexibility in channel selection and management of the company.
Tata Play, a major player in the DTH industry, has arguably the most flexible lock-in period policy. For all channels and services, prices are deducted based on DBR only, and it also allows customers to modify long-term packs if they change their minds. This flexibility in policy is appealing to customers who are looking for more control over their channel selection.
While ADTV hopes that this move will help in increasing its Average Revenue Per User (ARPU) in the short term, it has received wide criticism from its customers. This move will make it difficult for customers to choose and manage their preferred channels according to their needs and preferences and may lead to ADTV losing its subscribers to its competitors.
The traditional broadcast industry is facing a crisis with raising television subscription costs due to tariff orders and the increasing popularity of OTT platforms. It is essential for DTH operators to maintain flexibility and customer-friendly policies to empower their customers to choose their preferred channels and pay only for what they watch if they want to attract and retain their customers.
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