Discussion TRAI announced important changes in the Tariff Order

[Velu61]

Broadcasters will work in overtime to find the loop holes in the new tariff. And who knows they may even succeed and the subscriptions may go upwards

 

[Prithi Deb]

1. i) the sum of the a-la-carte rates of the pay channels (MRP)forming part of a bouquet shall in no case exceed one and half times the rate of the bouquet of which such pay channels are a part; and
ii) the a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.

(Pls correct me on any mistake)

I am taking an example here.

Suppose there are 5 channels in a bouquet, and the price of the bouquet is ₹10.

So, according to point (i), if we get these 5 channels through a-la-carte, the total sum of these channels should not exceed ₹15 (i.e. one and a half times ₹10)

Now coming to point (ii),
If this bouquet of 5 channels costs ₹10, then the average cost of each channel is ₹2.
According to point (ii), the a-la-carte rate (individual cost) of these 5 channels should not exceed ₹6 (i.e. 3 times ₹2).

 

[rahul78X]

Sony packages was available economical n well balanced . Only BBC Earth was missing from lower packages. Hope now they'll include BBC Earth also .

Star made packages costly

 

[rahul78X]

(Pls correct me on any mistake)

I am taking an example here.

Suppose there are 5 channels in a bouquet, and the price of the bouquet is ₹10.

So, according to point (i), if we get these 5 channels through a-la-carte, the total sum of these channels should not exceed ₹15 (i.e. one and a half times ₹10)

Now coming to point (ii),
If this bouquet of 5 channels costs ₹10, then the average cost of each channel is ₹2.
According to point (ii), the a-la-carte rate (individual cost) of these 5 channels should not exceed ₹6 (i.e. 3 times ₹2).

Thanks, now R.I.P. ₹19

 

[SarFa]

Star made packages costly

Both Star & Sun Network looted 1 year . All channels a la carte & packages was costly .

 

[Siva]

Explanation of those 2 points.

1. i) the sum of the a-la-carte rates of the pay channels (MRP)forming part of a bouquet shall in no case exceed one and half times the rate of the bouquet of which such pay channels are a part; and
ii) the a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.

Example for Condition i)

If the bouquet consists of channels A, B, C and D with the below al-a-carte prices respectively.

Bouquet 1

Channel A - 12
Channel B - 10
Channel C - 5
Channel D - 7

The total al-a-carte value comes to 34. So the bouquet price can't be less than 22.66

Example for Condition ii)

If the bouquet consists of channels A, B, C, D, E, F, G and H with the below al-a-carte prices respectively.

Bouquet 2

Channel A - 12
Channel B - 2
Channel C - 3
Channel D - 4
Channel E - 4
Channel F - 4
Channel G - 4
Channel H - 3

The total al-a-carte value comes to 36. As per rule i), the bouquet price can't be less than 24. So, If the bouquet price is 24 rupees per 8 channels, the average pay channel rate in that bouquet is 3 rupees. This means, the channel A's rate is 4 times higher than the average rate which is disallowed and that channel can't be part of this bouquet. It's basically to disallow clubbing of low-value channels with high-value channels in the bouquet. So, the broadcaster must either replace the channel A in the bouquet with a lower value channel (8 rupees) or they have to modify the other channels to offer other higher value channels.

If you take the previous example of Bouquet 1 given below, which had to be priced at 22.66.

Channel A - 12
Channel B - 10
Channel C - 5
Channel D - 7

Rule ii) is automatically satisfied here, as the average pay channel price in this bouquet is 5.665 and if we multiply it with 3, it comes to 16.995, which no channel is exceeding anyway.

Let me know if any questions!

 

[Rajat Basak]

I have a doubt. If LCO already feel up the slot of 200 FTA channels then we may have to pay additional Rs 30 maximum for pay channel addition. It's not clear that LCO will allow it to choose FTA channels or not. I didn't select FTA channels on my SITI because they don't charge for Additional channels. So i took FTA package.

 

[rahul78X]

Both Star & Sun Network looted 1 year . All channels a la carte & packages was costly .

Due to this loot, I deactivated TV 18 package and Sony Sports Package.

 

[WizarD]

siva bro can you explain your 1 & 2 point by example please.. or anybody??

1. i) the sum of the a-la-carte rates of the pay channels (MRP)forming part of a bouquet shall in no case exceed one and half times the rate of the bouquet of which such pay channels are a part; and

eg Ala-carte : SSx HD @₹12, SSy HD @₹10, SSx HD @₹8 (excluding GST).
Now, The sum of the MRPs is ₹30.
If broadcaster is making these 3 channels into a bouquet, the minimum price for the bouquet should be ₹20, so that Ala-carte sum is 1.5 times bouquet rate.
This is to avoid broadcasters bundling less popular channels into bouquets and offer at lower rates.

ii) the a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.

eg Ala-carte : SSx HD @₹12, SSa @₹2, SSb @₹2,SSc @₹2,SSd @₹2 (excluding GST).
Here, sum of Ala-carte is 20 if bundled, and average price is 4.
This is valid bouquet as the highest priced channel (₹12) in the bouquet is priced 3 x bouquet price ( 3 x 4) only.
Now, distributor cannot offer this bouquet for ₹18, because the bouquet average falls to ₹3.60 and the maximum price of a Pay channel in this bouquet is ₹10.80

 

[Rajat Basak]

@Siva

It's now crystal clear for me. Very good move by TRAI. Also we don't have to pay more NCF for additional channel. Because it's maximum 160. But what is point about 1 HD counts as 2 SD channel for NCF?