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TV broadcasters argue that they have no option but to increase bouquet rates despite fears of a shrinking pay-TV universe. They point out that the advertising revenue of major broadcasters remains under pressure due to slower growth in advertising expenditure (AdEx) and a shift in advertising strategies toward digital platforms.
“The pay-TV universe will continue to decline even if we don’t implement the rate hike, but at least we can protect our revenue by increasing the average revenue per user (ARPU),” said a senior TV broadcasting executive on condition of anonymity.
This marks the third consecutive year of bouquet price increases following the Telecom Regulatory Authority of India’s (TRAI) amendment of the new tariff order (NTO) after a protracted legal dispute between broadcasters and the regulator.
A cable TV official, also speaking on condition of anonymity, described the price hike as a “double whammy” for DPOs, who bear the brunt of consumer dissatisfaction. “Price hikes by broadcasters will definitely increase churn. So far, DPOs have shielded consumers from the full impact by keeping the network capacity fee (NCF) at a reasonable level,” he added.
economictimes.indiatimes.com
“The pay-TV universe will continue to decline even if we don’t implement the rate hike, but at least we can protect our revenue by increasing the average revenue per user (ARPU),” said a senior TV broadcasting executive on condition of anonymity.
This marks the third consecutive year of bouquet price increases following the Telecom Regulatory Authority of India’s (TRAI) amendment of the new tariff order (NTO) after a protracted legal dispute between broadcasters and the regulator.
A cable TV official, also speaking on condition of anonymity, described the price hike as a “double whammy” for DPOs, who bear the brunt of consumer dissatisfaction. “Price hikes by broadcasters will definitely increase churn. So far, DPOs have shielded consumers from the full impact by keeping the network capacity fee (NCF) at a reasonable level,” he added.
TV channels raise tariffs despite shrinking base as costs bite
TV broadcasters like SPNI and ZEEL are increasing channel bouquet rates by over 10% due to rising content costs and a challenging advertising environment. This comes as the pay-TV industry faces subscriber loss to OTT platforms and free alternatives like DD Free Dish.
